The Textile Design Industry in India

The textile design industry in India witnesses growth with rapid change in people and companies demand. Most people and companies are looking for sustainable and eco-friendly alternatives. In this blog, we will discuss industry trends, leading companies and their competitors, and much more 

Market Size of the Textile design Industry in India

As of 2024, the Indian textile industry is valued at approximately $250 billion, accounting for about 14% of industrial production and 30% of export earnings. The industry is expected to grow at a CAGR of 10% over the next five years, driven by rising domestic demand and exports.

Industry Trends for the Future

• Sustainability: In today’s time, the demand for eco-friendly products in India is increasing. The effect is also visible in the textile industry. New textile companies are manufacturing sustainable or innovative products using eco-friendly resources. By this change, old companies are also making their products sustainable and eco-friendly.
• Technology Integration: Textile companies are trying to improve product quality by integrating technologies like AI, IoT, and blockchain. Along with this, textile companies are also improving the efficiency of their production and supply chain with the help of technology.
• Fashion and Apparel: There are changes in the fashion industry due to the influence of eCommerce platforms or fast fashion, due to which the demand for textile products in India is also increasing. Textile companies are providing innovative or sustainable products to fulfill the demand.
• Technical Textiles: Textile companies are also providing solutions with their unique products in the healthcare, automotive, and construction sectors.

Industry Future for Jobs and Businesses

The textile design industry in India is expected to create over 10 million jobs by 2030, with high-paying opportunities in areas such as design, production, and marketing. New businesses focusing on sustainable fashion, smart textiles, and e-commerce.

Leading Companies and Competitors

• Reliance Industries Limited: Reliance Industries Limited was founded by Dhirubhai Ambani. Nowadays, it become a conglomerate with diverse interests, like petrochemicals, refining, oil, telecommunications, and textiles. In textiles, it focuses on polyester fibers and yarns; with this, it dominates the polyester segment with a 40% market share. 
• Arvind Limited: Arvind Limited is a pioneering company in the textile design industry in India. It was established in 1931 and is known for its innovation in denim and woven fabrics. It is a key player in the denim market, with a market share of 22%. It is also known for its waterless dyeing technologies and strong use of eco-friendly materials.
• Vardhman Textiles: Vardhman Textiles was founded in 1965. It is a leading player in yarn, fabric, and thread manufacturing. It dominates the 15% market share in the cotton yarn segment. It exports its products to over 75 countries with a strong global presence and also invests in advanced spinning technologies.
• Aditya Birla Group (Grasim Industries): Grasim Industries is a part of the Aditya Birla Group, which was founded in 1947. Grasim is one of the largest manufacturers in India, dominant in viscose staple fiber, cement, and chemicals with a 20% market share. It also focuses on sustainable fiber production.

Competitors: 

• Raymond: Raymond is one of India’s oldest and most renowned textile and apparel companies that was established in 1925. It is known for its high-quality fabrics, especially suiting. It has also expanded its market into ready-to-wear clothing, toiletries, and engineering. It competes in the premium fabric segment, which is known for its quality and brand value.
• Welspun India: Welspun India is a part of the Welspun Group, which was founded in 1985. It is a leading global manufacturer of home textiles, including towels, sheets, and rugs. It is known for its innovative products and a strong commitment to sustainability.
• Page Industries: Page Industries is the exclusive licensee of Jockey International and Speedo in India, which was founded in 1994. It is known for its high-quality products in the innerwear and leisurewear markets, and this has made it a leader in this segment. 

Demographic and Market Share Data

• North India: A total of 35% of the market share in textile production is held by North Indian companies.
• West India: West India Contributes 30% of the market share in the textile design industry in India, with key states being Maharashtra and Gujarat.
• South India: South India Holds a 25% market share in the textile design industry in India, with a major textile hub as Tamil Nadu.
• East India: Focus on silk and handloom products East India produced a 10% market share in the textile design industry in India.

Porter’s Five Competitive Forces

• Threat of New Entrants: The threat of new entrants is moderate because of high capital investment and competition.
• Bargaining Power of Suppliers: Suppliers’ negotiation power is Low because of the abundance of raw material suppliers.
• Bargaining Power of Buyers: Buyer’s negotiation power is High because of numerous alternative companies available in India.
• Threat of Substitutes: The threat of substitution is Moderate in India due to synthetic fibers competing against natural fibers.
• Industry Rivalry: Industry rivalry is High in India due to the presence of numerous established players and new entrants.

Industry Norms and Financial Ratios

• Gross Margin: 25–30%
• Net Profit Margin: 8–12%
• Current Ratio: 1.5-2.0
• Debt-to-Equity Ratio: 0.5-1.0

New Entrants

• Nyla Textile: Nyla Textile is a new player in the textile design industry in India, that is focused on sustainable and eco-friendly fabric production. It emphasizes innovation and environmental responsibility. It is aiming to fulfill the growing demand for sustainable textiles. 
• EcoFab India: EcoFab India specializes in producing eco-friendly and organic fabrics. It is dedicated to sustainability and it also offers a wide range of textiles made from organic cotton, bamboo, and other environmentally friendly materials.
• Trendy Weaves: Trendy Weaves is a modern textile company that focuses on contemporary designs (that refers to current and future design styles) and high-quality fabrics to target the youth market with trendy and affordable apparel. The company aims to blend traditional weaving techniques with modern aesthetics to fulfill the demand of both domestic and international markets. 

Industry Websites and Trade Associations

• Textile Association (India)
• Confederation of Indian Textile Industry (CITI)
• Federation of Indian Chambers of Commerce and Industry (FICCI)
• For more in-depth: the India Brand Equity Foundation (IBEF) Textile Industry Report

Conclusion

The textile design industry in India, with its vast market size and future potential, has become a critical sector for economic and employment growth. The textile design industry in India evolves with trends like sustainability. It opens up numerous opportunities for businesses and job seekers. Keeping an eye on industry leaders and new entrants will be helpful for anyone who is looking to make their mark in this industry.