India Cotton Market – Industry Analysis, Forecasts and Opportunity Assessment (2016-2023)

Report on India Cotton Market – Industry Analysis, Forecasts and Opportunity Assessment (2016-2023)

Introduction to India Cotton Market

Cotton is an important component in the Indian textile industry. Indian textile industry is dependent on cotton. The textile industry is the second largest employer to Indian population after agriculture. India is one of the largest producer and exporter of cotton yarn. Textile industry contributes around 5% to Indian GDP. The textile industry in India has around 14% share in India’s industrial production. It provides employment to over 51 million people.

The handloom industry exports fabrics, bed linen, curtains etc.

Maharashtra, Telangana, Gujrat, Andhra Pradesh, Madhya Pradesh, Haryana, Karnataka, Rajasthan and Punjab are major cotton producing states in India.

The Cotton Textile Export Promotion Council is an autonomous body. It works to promote textile exports from our country.

 

 

Market Dynamics

Demand for cotton and manmade fibres in India is expected to strengthen in response to rising consumer demand in India and increased exports of textiles and apparels.

Future Prospects

The recent trade dispute between the US and China has opened up new opportunities for Indian cotton in China. China has imposed a punitive tariff of 25 per cent on import of US origin cotton. India has a trade balance with China and thus Cotton provides an opportunity to narrow the trade gap.

A surge is likely in Indian cotton yarn export. There was 56% YOY growth in cotton yarn exports. The strong growth has been driven by a more than two-fold increase in exports to China and by competitive Indian cotton and yarn prices. India’s forward export contracts of cotton have more than doubled from about 7 lakh bales because of increasing demand from China.

The US market for textiles is vital to the health of local textile exporters. After a turbulent time in FY18, The market is gradually improving.  Walmart and Target Corp.  Large retailers in the US reported their best performance in recent months. This has raised hopes for an increase in textile exports to the US.

 

Key Drivers for Indian Cotton Market

New Middle Class– Due to urbanisation, the size of the working population is increasing. It has increased the income of the people. By 2025, 37.5% of India’s population is estimated to be living in urban areas. Urban lifestyle and services are becoming popular in rural areas. All these factors have added new consumers to the Indian middle class. By 2025, middle-class consumers will contribute 55-60% share in the total apparel market.

Smart women– The role of Indian women is changing and with more women contributing to household income, their influence on family decision-making is increasing. This whole change has increased their awareness. As a result, women are focusing more on their appearance and looks.

 

Fashion-. Cotton is always in high demand because of suitability to Indian weather, easy silhouettes, availability and trendy designs. There is high demand for cotton sarees because of high-quality fabric and competent spread works.

 

 

 

Market Segmentation

Cotton Production Sectors-

Mills- The mill sector played a dominant role in the cotton textile industry at the initial stage. But its importance was reduced drastically with the growth of power loom and handloom.

Power looms- The decentralised power loom sector plays an important role in meeting the clothing needs of the country. The power loom industry produces a wide variety of clothes with intricate designs. It accounts for around 60% of the total cloth production in the country.

Handlooms- Intensive efforts are being made by the Office of the Development Commissioner for Handlooms, Government of India to upgrade the hand weaving technology. A large number of Handloom Weavers’ co-operative societies focus on improving the working conditions and quality of living for hand weaving. There are more than 500 specialised handloom weaving clusters in India.

 

Different cotton types in India

Suvin- This variety is sown in the month of August and comes to harvest by February or March. Suvin is the most superior cotton grown in India. The feature that makes this variety special is that its fibre characters remain uniform from the first picking to the last picking.

DCH 32- It is an interspecific hybrid widely used in Karnataka, Tamilnadu and MP.

Brahma- A private company in AP developed this hybrid cotton variety.  It can withstand extreme weathers like draughts and excess rain.

MCU 5- This variety is grown in the states of Maharashtra, Andhra Pradesh, Tamilnadu and Orissa.

Shankar 4- This plant grows to a height of 120- 150 cm. It is susceptible to bollworms and mites.

J34 SG- It is grown in Punjab, Haryana and Rajasthan and total production per annum is 2.6 million bales.

 

Key markets and export destinations:

India is the second largest exporter of textile and clothing. India overtook Italy and Bangladesh in the cotton textile production.

Bangladesh is the largest importer of Indian cotton. Bangladesh imports raw cotton worth US$ 737.94 million from India, followed by Vietnam US$ 337.99 million, Pakistan US$ 278.55 among others.

Foreign brands and retail firms like Carrefour, Gap, H&M, JC Penny, Marks & Spencer, Nike and Walmart import Indian textile products.

 

 

Geographic Analysis

Major Cotton producing states:

Gujrat- Gujrat is the leading cotton-producing state in India with a production of 125 lakh Bales. Gujrat accounts for more than 31% of the total cotton production in the country. There are more than 100 textile companies in Gujrat.

Maharashtra- With a production of 85 lakh bales Maharashtra stands at 2nd position. Maharashtra has the largest area under cotton cultivation.

Telangana- Telangana produces 50 lakh bales of cotton.

 

Cotton Textile Industry

Cotton textile mills are spread over 80 towns and cities in India. However, a concentration is found in Maharashtra, Gujrat, West Bengal and Uttar Pradesh.

Maharashtra:

Maharashtra has the fastest growing cotton textile industry. It produces 25per cent mill cloth and 12 per cent yarn of India. Maharashtra has introduced a new textile policy to promote textile activities and support Make in India. It has focused on setting up units in Vidarbha and Marathwada.

Mumbai, Pune, Kolhapur, Satara, Wardha, Solapur, Nagpur, Aurangabad, Amravati, Akola, Sangli, Jalgaon, are some of the centres of the cotton textile industry in Maharashtra.

Gujarat:

Gujarat is the second largest producer of cotton textiles. It accounts for over 35 per cent of the mill cloth and over 8 per cent of yarn production in India. Vadodara, Bharuch, Porbandar, Surat are some cotton textile centres in Gujrat.

Madhya Pradesh:

Cotton is grown locally here. Availability of coal makes energy supply easy. Abundant cheap labour is available due to the backward economy of the region. Gwalior, Ujjain, Indore, Jabalpur, Bhopal, etc. are important centres.

 

Tamil Nadu:

Tamilnadu has a significant presence in the Indian Textile Industry. It is an important cotton textile producer in the southern part of the country. Coimbatore is the most important centre having 200 mills. Mills in Tamilnadu are small and are less productive. Tamil Nadu produces only about 6 per cent of the mill cloth of India but it is better than all other states in the production of yarn. It produces over 39% of the total yarn in the country.

 

West Bengal:

West Bengal government has identified 4 areas for cotton cultivation. These areas include Bardhman, Bankura, Birbhum and 24 Parganas. West Bengal has advantages in terms of availability of raw material, cheap labour and low cost of operations. Handloom and cottage industries are an important part of the textile industry.

 

 

Uttar Pradesh:

The western part of UP has a large concentration of cotton textile industry. Kanpur is the largest centre. It has 10 out of the 52 cotton mills in India. Varanasi, Moradabad, Kanpur, Lucknow, Agra are some important cotton textile centres in UP.

 

Other producers are as below:

Andhra Pradesh

Kerala

Bihar

Rajasthan

Punjab

Haryana

Karnataka

 

 

Key players

Here is the list of some textile companies in India.

 

Arvind Ltd

Arvind Ltd was established in the year 1931. It has its head office in Ahmadabad and operating units at Satej. It is the flagship company of the Lalbhai group. It manufactures a wide range of products including Denim, Knits and fabrics. It is one of the top denim manufacturers in India. The company runs its retail and clothing chain.

 

Bombay Dyeing and Manufacturing Company Ltd

Bombay Dyeing is the flagship company of Wadia group. The company was established in the year 1879. It is one of the largest and well-known producers of textiles. It offers a wide range of products including Bed Linen, Furnishings and Towels.

Bombay Rayon Fashions Ltd

Bombay Rayon Fashions Ltd is a well-known textile company in India. It is engaged in the manufacture of garments and fabrics. It is the largest shirt manufacturer in India. It is offering a wide range of products including Lycra, Wool, Tencel and Polyester. It is a rapidly expanding textile company in India.

 

Fabindia Overseas Pvt Ltd

It was established in the year 1960. It is headquartered in New Delhi, India.

It is known for its traditional techniques and hand-based process. The company source its products from Indian villages. It has given many employment opportunities to people in rural areas.

 

Grasim Industries Ltd

Grasim Industries Ltd was founded in the year 1948. Its headquarter is located in Mumbai, Maharashtra. It is a part of Aditya Birla Group. Grasim Industries is one of the world’s largest producer of Viscose Staple Fibre. It is involved in the export of textile products to other countries.

Karnataka Silk Industries Corporation Ltd

KSIC focuses on the promotion of silk. It manufactures good quality silk and distributes it all over India. The company is known for its quality silk across India.  It offers a wide range of products like Silk Dhoti, Men’s Tie, Salwar Kameez, Silk Sarees, Kurta etc.

Raymond Ltd

The company was established in the year 1925. It is headquartered in Mumbai, India. It deals in a wide range of products including fabrics, garment, designer wear, denim etc. It is one of the most trusted fabric brands in India and the largest manufacturer of fabric in the world. Raymond has opened retail shops in India as well as in other countries.

 

The Lakshmi Mills Company Ltd

Lakshmi Mills Company, which is located in Coimbatore in Tamilnadu, was established in the year 1910. It offers a huge range of products including textile yarn, textile garments, weaving, and spinning.

 

Vardhman Textiles Ltd

Vardhaman group was started in the year 1965 and it operates from Ludhiana in Punjab. The group manufactures and trades in Yarn, Grieg and Processed Fabric, Sewing Thread etc. Today it is among the largest vertically integrated textile groups in India.

 

The report contains a comprehensive analysis on:

  • India Cotton Market Segments
  • India Cotton Market Drivers, Restraints and Opportunities
  • India Cotton Market Size & Forecast 2016 to 2022
  • Supply & Demand Value Chain
  • India Cotton Market Current Trends
  • Competition & Major Companies
  • Technology and R&D Status
  • Porters Five Force Analysis
  • Strategic and Critical Success Factor Analysis of Key Players

 

This report is an elaborate aggregation of primary inputs from industry experts and participants across the supply chain. It provides in-depth market segmentation that is derived from extensive product mapping exercises, macroeconomic factors, and other qualitative and quantitative insights. The impact of all such factors is delivered across multiple market segments and geographies.

 

Report Highlights

  • Detailed Historical Overview (Market Origins, Product Launch Timeline, etc.)
  • Consumer and Pricing Analysis
  • Market dynamics of the industry
  • In-depth Market Segmentation
  • Historical and Projected Market Sizing in terms of volume and value
  • Recent market trends and Impact Factors
  • R&D Status and Technology Overview
  • Extensive Industry Structure Coverage

 

 

 

 

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