India is the world’s second - largest textile producer after China. It has a large raw material base and Capable of producing a wide variety of textiles and end products. India has one of the most cost competitive textile manufacturing base for all types of products across the entire value chain. Labour cost in India is lower than most of the competing countries except Bangladesh, Ethiopia and Kenya. Although power cost is on the higher side but still cheaper than China and Cambodia. Buyers look at India as the next alternative of China as it offers big domestic market, better adherence to compliance and political stability. Government of India, National Textile Policy, vision Document projects Indian textile and apparel exports to grow from $39 billion to $300 billion by 2025.
Moving forward,by investing a sizeable amount of capital to expand production capacities and producing value added products, the Company aims to increase the share of retail sales to 70% from a current 32% of its turnover in 3-4 years. Just recently, Kohlberg Kravis Roberts (KKR), one of the largest Private Equity firms globally, showed their faith in our story by supporting us upto Rs. 520 crore through structured debt. This is a strong validation of our transformation strategy and our long-term goals to shift our business model towards the retail segment and become a foods company with dominant brands. We believe that this relationship would evolve over a period of time.
Textile major Raymond is planning to cut about 10,000 jobs in its manufacturing centres in the next three years, replacing them with robots and technology. Explaining the move, Raymond CEO Sanjay Behl said the company employs over 30,000 staff in their 16 manufacturing plants in the country. "Roughly 2,000 work in each plant to scale down the number of jobs to 20,000, through multiple initiatives in technology. One robot could replace around 100 workers. While it is happening in China at present, it will also happen in India," he said, adding that the sector was very manpower intensive.
Kishore Biyani wants to take his group's revenues from Rs 18,000 crore now to Rs 1 lakh crore by 2021, eyeing a jump of almost six times. Biyani is looking at a compounded growth rate (CAGR) of 33 per cent. He believes even if 10 million people shop for Rs 100,000 each every year at his stores, it can get him to Rs 100,000 crore. It has grown a CAGR of 10.18 per cent between FY11 and FY15. The organised retail segment, which is eight per cent of $550 billion Indian retail, has grown about 25 per cent CAGR in the past five years and expected to grow at a similar clip in the next four years, according to Technopak estimates. Biyani wants to fund the growth through internal cashflows and not through debt. Biyani, it appears, is aiming to grow faster than the largest retailer - Mukesh Ambani's Reliance Industries - which has grown at a clip of 54 per cent CAGR over the past five years and overtaken Future Retail as the country's largest retailer. Reliance Retail, which had set a target of Rs 50,000 crore by 2016, posted a turnover of Rs 17,640 crore in FY15.