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How India can get ahead of the rest...
Prashant Agarwal, Vice President, Technopak Advisors Pvt. Ltd. writes...
Textile manufacturing business is a pioneering activity in the Indian manufacturing sector and has a primordial importance in the economic life of the country. Indian textile industry is globally competitive considering not only cost but factors like vertical integration, raw material availability, manpower skills, product specialisation and service levels provided by the Indian manufacturers.
Global trade of textiles and apparel is increasing at a CAGR of 5-6 %, so competition is not about taking someone else’s share but it is all about creating our own niche and provide better service to be a preferred vendor for long term. India and China are long term competitive players in the Textile and Apparel Industry because of their large population base and also availability of land base. China has taken the headstart in the market from India though due to its impressive production capacities set up at the right time and also infrastructure development by setting up supply chain cities. So India has lot to learn from China, than talking about any competition.
There is a need to create large capacities and invest big in this industry to be able to produce and achieve the targets set by Government and industry, if we don’t have capacities we can’t expect to achieve the targets. Big players in the industry have to invest in a big way to create capacities and then go to large scale acquisitions of brands and manufacturing capacities in innovative product and design in Europe or US. It is important that the players are present in a complete value chain to avoid huge price pressure of sudden change in raw material prices or other costs.
Buyers are looking to source from India in a big way with long term perspective but they don’t find the capacities to cater to their requirements. The mantra is to have a perfect balance between scale of operations and product differentiation. This will help cater to buyer’s requirements like quick turn around time, assistance in product development, better quality and most importantly a long term strategic relationship. The service levels have to increase to an extent that the buyers do not have option to go to other vendors. Business should be based on the long term factors like scale of operation, buyer satisfaction, product differentiation, R&D, innovation not on short term factors like variation in raw material prices, currency fluctuation and other input costs. To get ahead of the others, we need to define a clear mission and vision, create our own niche and product differentiation, work towards better operational efficiency and capacity utilisation, provide best customer service, look towards complete value chain and believe in our country’s competitiveness.
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