INDUSTRY AND COMPANY ANALYSIS PROJECT (I-CAP)

at

“ << KOMAL TEXFAB PVT LTD>>”

Submitted
In partial fulfillment of the
requirement of the award for the degree of
Masters of Business Administration (Integrated)
(Semester V)

Under The Guidance Of

Faculty Guide
ASST. PROF. SUSMITA SUGGALA
 Submitted by

(STUDENT NAME)
Enrollment No.:____

ADNAI GRECY 21003501610062

DUBEY GUNJAN 21003501610063
KALAL GUNJAN 21003501610064
HAPPY BHUT 21005501610066

MBA (Integrated) – SEMESTER V

Offered By
LJ Integrated MBA – 5-Year Program
(School of Management Studies)
LJ University
Ahmedabad

AUGUST 2023
 INDUSTRY INTRODUCTION

 With a sizable base of raw materials and textile manufacture, India has one of the largest textile industries
worldwide. Along with other important industries, the manufacturing and trading of textiles play a significant role
in our economy. The export of textiles and apparel accounts for about 27% of total foreign exchange earnings.
About 20% of industrial production and 4% of the nation's GDP are contributed by the textile and apparel
industry. The textile sector contributes about 8% of the overall amount of excise taxes collected. So much so that
the textile industry is responsible for up to 21% of all employment created in the economy.

 One of the people's most fundamental requirements is being met by the textile industry, which is crucial for
maintaining steady growth and raising living standards.
 Growth of Industry at the world level

 The size of the worldwide textile industry was estimated at USD 1,695.13 billion in 2022, and it is anticipated that between
2023 and 2030, the market's earnings are expected to rise at a CAGR of 7.6%. Throughout the forecast period, market growth
is anticipated to be driven by the always-rising demand for garments from the fashion industry and the explosive rise of e-
commerce platforms. The design, manufacture, and distribution of various flexible materials like yarn and clothes constitute the
three main tenets of the textile industry.

 The recent coronavirus pandemic has hampered global textile market growth. Global trade limitations brought on by a broken
supply chain and a drop in demand for textile products amidst imposed lockdowns also had a detrimental impact on the
market's development. Despite this, the industry is anticipated to experience a robust rebound during the projection period,
helped by government backing and growing public knowledge of useful preventative measures.
Perspectives on Raw Materials
 The market's largest segment by revenue share in 2022 was cotton, which accounted for 38.9% of the total. Cotton is the most
significant natural fiber in the world thanks to its exceptional qualities, including great strength, absorbency, and color
retention. The world's top three producers of cotton and items made from cotton are China, India, and the United States.

Product Information
 Natural fibers led the market and held a 44.1% revenue share in 2022 due to their extensive use in several applications within
the fashion and apparel sector. Growing environmental concerns and consumers' continued shift to adopting sustainable
products are expected to increase the demand for natural fibers, which will also support the growth of the global textiles
industry.
 Growth of Industry at the National Level

 The country of India has been independent for more than 50 years. The industry grew gradually, albeit more slowly, during the
first two decades after independence and significantly more slowly during the third, according to an analysis of the growth
patterns of different industry segments over the course of the last five decades. After that, every sector of the industry saw
growth that was substantially faster during the fourth decade. However, the fifth decade, or the last ten years, and more
specifically the 1990s, saw the expansion of the economy reach its maximum level.

 The rise in the 1990s was hastened by the Textile Policy of 1985 and the Economic Policy of 1991, both of which focused on
the liberalization of the economy and trade. During this time, the organized sector of the man-made fiber industry and the
decentralized weaving sector both saw significant expansion.
Size of India's Textile Industry
 The textile industry in India engages in a wide range of activities, from the production of raw materials like cotton, jute, silk,
and wool to offering consumers high-value products like fabrics and clothing. An estimated 35 million people receive direct
employment from the textile industry in India, which also contributes 4% of the country's gross domestic product (GDP) and
35% of all gross export revenues. The textile sector contributes 14% of the value addition in the manufacturing sector.
 According to predictions, the textile industry might rise by between 15% and 18% this year as a result of MFA’s (Multi Fiber
Arrangement) deconstruction.

The Economic Impact of the Indian Textile Industry

 The textile sector is very important to the economy. In terms of output, foreign exchange profits, and employment in India, the
textile industry is one of the biggest and most significant economic sectors. It produces 20% of industrial production, 9% of
excise revenue, 18% of industrial sector employment, over 20% of the nation's total export earnings, and 4% of GDP. The
industry is the second largest employer in the nation, having approximately 35 million workers. According to estimates, this
industry affects one in every six households in the nation either directly or indirectly.
Government Actions
 The Ministry of Textiles suggests 50 additional textile parks to increase India's participation in the global textile trade from its
current 3 percent to 10% by 2025. Out of the 50, the government has already approved 30 (for US$ 710 million). This plan,
established under the Scheme for Integrated Textile Parks (SITP), will not only increase the sector's capacity for manufacturing
but also make the business more cost-competitive.

 In addition to the aforementioned, several progressive actions have been planned to support the Indian textile industry:

• Technology Upgradation Fund Scheme (TUFS) and Technology Mission on Cotton (TMC)

• Creation of ATDCs (Apparel Training and Design Centers)

• 100% Foreign Direct Investment (FDI) via the automated route in the textile industry.

• Establishing two design studios in Gujarat with the National Institute of Fashion Technology.
 Competition Analysis of the Industry
 The textile and apparel (T&A) industry is a highly globalized, multi-trillion-dollar sector. Labor intensive, the industry has
consistently relocated around the planet over the past half-century in the pursuit of low-cost workers supported by preferential
trade access. Today, these apparel production networks are dominated by low-cost Asian countries with very large labor pools
supplying primarily the European and United States (US) markets. The dominance of Asia in the industry has made it
increasingly difficult for other producers around the world to compete, including those in Latin America and the Caribbean.
Countries from LAC have participated in this globalized industry. However, no Latin countries are amongst the leading ten
exporters despite their proximity to the US. This report explores whether changes to the global industry brought about or
accelerated by the COVID-19 pandemic and the changing geopolitical landscape have created new opportunities for countries
from the region to take on more relevant roles.

 After years of geographical shifting, the past decade has consolidated sourcing practices in the apparel and textiles industry.
Supply has been concentrated in Asia, led by China, together with Bangladesh and Vietnam collectively account for more than
half of all exports.
The Textile Apparel and Global Value Chain

 The global value chain for textiles and apparel (T&A GVC) is divided into five main sections: (1) design; (2) pre-production
logistics; (3) networks of garment manufacturers' production, including those of their domestic and international
subcontractors; (4) trade intermediaries' established distribution networks; and (5) retail marketing and sales networks.

 The sourcing of raw materials (natural and synthetic fibers), the provision of components, such as the yarns and fabrics
produced by textile companies, and the delivery of accessories (such as buttons and zippers) and trim are all areas where pre-
production logistics and textile manufacturing collide. The apparel GVC is geographically and organizationally fragmented, as
is the case in many other industries. Global inter- and intra-firm networks are used to produce components and assemble them
into finished goods. The GVC's stages are described in more depth in the next slide.
 Top 10 Apparel Exporters' countries

 China
 Germany
 Bangladesh
 Vietnam
 India
 Italy
 Turkey’
 USA
 Hong Kong (China)
 Spain
 Determinants of Demand of the Industry

 Consumer Income: Higher disposable income encourages consumers to spend more on apparel and textiles.
 Fashion Trends: Variations in fashion trends and preferences have an impact on the demand for various textile types.
 Population Growth: A greater base of textile consumers results from an increasing population.
 Demographics: Age, gender, and cultural preferences are all factors that affect the textiles that people choose.
 Economic Situation: The overall state of the economy has an impact on consumer confidence and textile purchasing capacity.
 Price of Alternatives: Changes in the cost of substitutes like ready-made clothing or synthetic fibers may have an impact on
textile demand.

 Climate & weather: Seasonal fluctuations affect the textiles that consumers want, such as thicker fabrics in the winter.
• Tariffs, trade restrictions, and incentives are examples of government policies that can have an impact on domestic and
international textile demand.
 Determinants of Supply of the Industry

 Cost of Raw Materials: Variations in the cost of cotton, wool, synthetic fibers, etc. have an impact on the costs associated with

producing textiles.

 personnel market: The textile industry's production capacity is influenced by the cost and availability of trained personnel.

 Technological developments: New equipment can boost supply and increase manufacturing efficiency.

 Energy costs: The price of the energy needed to produce textiles has an impact on supply levels (Karina, December 2022).

 Government regulations: The production procedures and supply chain may be impacted by environmental and labor laws.

 Infrastructure Investment: Supply capabilities are impacted by adequate manufacturing, transportation, and logistics

infrastructure.

 Exchange rates: Changes in exchange rates affect the price of importing and exporting textiles and materials.
 PESTEL Analysis of the Textile Industry
Political and Government Diversity :
 The production reservation for very small businesses, which was implemented to aid small-scale businesses nationwide,
resulted in significant fragmentation that harmed the industry's ability to compete.

Economical Factors :
 The textile industry is influenced by economic factors such as per capita income, national income, resource mobilization,
resource exploitation, infrastructural development, capital formation, job creation, and industrial growth.

 One of the most basic human needs is met by the textile sector, which adds significant value at every level of production.
 Today, the textile industry produces close to 14% of all industrial production. Indian textiles are in demand because of their
diverse textures, earthy colors, and ethnic design. About 30% of all exports are in the textile industry.

Social Factors :
 While cultural differences are inconceivable for any international manager or even an urban Indian manager, social variables
like education, knowledge, rural community norms, and beliefs that are prevalent in India, especially in rural society, cannot be
disregarded by managers and policymakers. Cotton serves as the foundation of India's textile industry, and since cotton is an
agricultural crop that is more commonly found in rural regions, it bears some social responsibility. In rural societies, social
stratification is quite important.
Technological Factors :

 One of the most significant components in the textile business is said to be technology. Because of this, the government gave
advanced technology and technology transfer a high priority in its industrial policy resolutions, industrial licensing rules,
MRTP and FERA regulations, and liberalization programs.

Legal Factors :

 Lack of trade membership is another issue that prevents access to potential markets. Another legal factor that affects this
industry is the inability to produce Economies of Scale. Indirect taxes, utility prices, and interest rates have all increased due to
government action. Integration across the supply chain's nodes is also hampered by the uneven supplier base. Performance that
is unpredictable, unreliable, and inconsistent is caused by this problem.
 India has the potential to seize opportunities in the export sector. By 2010, the sector has the potential to generate $34 billion in
export revenue. Regulations are assisting in improving the infrastructure of apparel parks, specialized textiles, EPZ, and EOUs.
 Porter’s 5 Forces Model

• Threat of New entrants – High (capital intensive, high technology, patent, trademark, economies of scale, etc)
• Threat of substitutes – low
• Bargaining power of customers – High (several alternatives)
• Bargaining power of suppliers – low ( various suppliers in the market)
• Industry competition – High (leads to low consumer loyalty, the product is easily replaceable )

Financial Analysis of the Industry

 For Financial analysis, we have chosen the top 3 companies that define our industry, and based on this, we came to know the
average growth of the industry over the years
1. Arvind LTD: One of the largest textile manufacturers in India. It involves the manufacturing of cotton shirting, denim, knits,
and bottom-weight fabrics.
2. Vardhman Textiles: It is a global chemical and textile company based in Thailand. It is involved in the production of polyester
fibers, yarn, and fabrics and it has operations in various countries of the world.

3. Welspun India Ltd: It is one of the largest textile companies in India and is primarily engaged in the production of home
textiles including towels, beddings, and rugs. They are significant suppliers to major retailers.

1. Arvind Ltd

Average Sales 7.994498597

Average Revenue 8.70922158

Average Expenditure 9.66704634

Average Operating profit 6.22843725

Average Net Profit Growth 77.46320427

OPERATING PROFIT RATIO

2023 2022 2021 2020 2019

7,722.69 7,459.57 4,528.54 6,705.31 6,435.96

SALES

697.31 751.97 464.43 693.41 633.13

OP

RATIO 9.02936671 10.08060786 10.25562323 10.3412072 9.837382457

NET PROFIT RATIO

2023 2022 2021 2020 2019

7,722.69 7,459.57 4,528.54 6,705.31 6,435.96

SALES

345.91 59.3 92.67 171.38 199.44

NP

RATIO 4.479138746 0.794951988 2.046355 2.555885 3.098838

2. Vardhaman Textiles

Average Sales 11.42541075

Average Revenue 11.90992126

Average Expenditure 11.84959728

Average Operating profit 24.91353533

Average Net Profit Growth 53.19790383

NET PROFIT RATIO

2023 2022 2021 2020 2019

9,840.79 9,386.10 5,787.64 6,325.15 6,414.58

SALES
NP 749.07 1,677.44 350.41 545.49 695.88

RATIO 7.611888883 17.8715334 6.054454 8.624143 10.84841

OPERATING PROFIT RATIO

2023 2022 2021 2020 2019

9,840.79 9,386.10 5,787.64 6,325.15 6,414.58

SALES
OP 1,285.05 2,262.12 739.25 882.78 1,131.52

RATIO 13.0584028 24.1007447 12.772909 13.95666506 17.6398143

3. Welspun India

Average Sales 1.490901

Average Revenue 2.472653

Average Expenditure 3.243965

Average Operating profit -7.78257

Average Net Profit Growth 31.80227

NET PROFIT RATIO

2023 2022 2021 2020 2019

SALES 5654.62 6703.47 5956.35 5323.57 5395.26

NP 151.68 392.13 526.67 474.89 141.77

RATIO 2.682408 5.849657 8.84216 8.920518 2.627677

OPERATING PROFIT RATIO

2023 2022 2021 2020 2019

SALES 5654.62 6703.47 5956.35 5323.57 5395.26

OP 397 890.73 1,082.41 1,009.24 794.83

RATIO 7.02080776 13.2875958 18.172371 18.957955 14.73201

 COMPANY STUDY
Company Information and Product Profile

KOMAL TEXFAB PVT. LTD.

 Since its founding in 1981, Komal Texfab has had a position in one of India's top process houses for knitting, dying, and
printing.

 Their creativity, vigor, and honesty tradition inspire them to celebrate forward-thinking and independent thought. All of this
contributes to their ability to move forward with their integration from manufacturing to retail.

 Inspiring, and a revitalized sense of originality and freedom in the fashion business, their clientele includes the majority of
domestic and internationally renowned companies, and they are meeting their demands in every manner imaginable. This
demonstrates their spirit of ongoing exploration.
Visions and Missions
To be a leading textile solution provider enterprise across the domestic and global markets by exceeding customer expectations…
They are offering custom-made value-added services and solutions to our customers.

They are in the continuous process to explore untapped potential markets & products.

They initiate and maximize people's growth.

To be an establishment guided by principles.

To be an ace superior in Global Textile Industry.

Founders
 Mr. Suresh Bagrecha (CMD) Mr. Rajesh Bagrecha (founder)

 Mr. Vikram Bagrecha (Founder)

 Mr. Sudhir Bagrecha (Founder)

 The company involved in the process of printing different fabric qualities like:

1. Viscose

2. Cotton Lycra

3. Terry

4. Pc Brasso

5. Khadi

6. Modal Lycra

7. Cotton slub

8. Grey Melange

9. Ecru Melange
• Production Process

Step 1: Different types of fibers are extracted like natural and silk fibers like wool, silk, polyester, rayon etc.
Step 2: fiber is then converted into yarn.
Process :
1. Started with cleaning the impurities on the surface using a Bole opener machine.
2. Thereafter various processes are being done like Blending, mixing, carding, drawing, and roving and finally yarn is made.
Step 3: Thereafter weaving and knitting is being done on the fabric.
Weaving process :
3. Two distinct threads of yarn or threads are interlaced at right angles to form a fabric or cloth. ( lengthwise thread is called the
warp and width-wise thread is called the weft)
4. It is woven on a loom machine.
Application areas: Apparel, Home textiles, etc.
 Knitting Process :

1. It is manufactured by interlapping a single set of yarn.

2. Long needles are used to interlink a knot, a series of loops made by one continuous thread.

3. Each loop or knot connects to another one and when enough loops have been made, the result is a flat piece of material called

fabric.

Application: Sports, Casual wear, and undergarments.

Step 4: Dyeing process :

Fabric is dyed using different types of Dyeing methods like Reactive dye, sulphur dye, vat dye, and pigment dye.
 Printing process
Type of Printing
Rotary Screen Printing
For rotary printing, distinct screens must be made for each hue of the picture. Each color is blended separately. Direct
printing onto cloth utilizing a computer and a printer with ink cartridges is known as digital textile printing.
It is the most cutting-edge and technologically operated.
Examples are Ragienie, Zimmer, RD 4, and RD Storemac.
Process
 Step 1 – Raw material also known as Grey
 Step 2 – Processing
a) Boiling the fabric
b) Bleaching

Thereafter two types of fabric become ready – RFD ( cream) and full white fabric.
 Printing on white fabric is called pigment printing or procean printing.
 Printing on dyeing fabric is called discharge printing.
 Light shade to dark shade ( pigment printing)
 Dark shade to light shade ( discharge printing)
 Step 3 – Printing
 Discharge printing (cotton)
 Pigment printing(cotton)
 Procean printing (cotton)
 Disperse printing(polyester)

 Discharge printing process

 After printing, the fabric goes into the loop machine for steaming.
 In the loop machine, there is water vapor.
 After looping, the fabric goes into the poly machine for the heat of the oil.
 Then the fabric washed into Bruckner.
 Then into the dryer
 Lastly finishing of the fabric is done – to soften the fabric or to increase or decrease the width of the fabric.
 Pigment Printing Process

 After printing, the fabric does not go into the loop machine but directly into the Polly machine for the heat of oil (150 -160
degrees)
 Thereafter it goes for finishing.

 Procean Printing Process

 After printing, the fabric goes into the loop machine for steaming (2 to 2.5 kg).
 Thereafter it goes for washing in Bruckner and not in the Polly machine for heating of oil.
 Then into the dryer
 Then finishing

 Disperse Printing
 It is done only on polyester.
 It also goes with the same process of looping and then into the Polly.
 Thereafter washing and drying
 And lastly finishing
Sales and Promotional strategies

 Quality products and competitive pricing – Offer high-quality textiles at competitive prices to attract and retain customers.
Ensuring that the products meet and exceed customer expectations.

 Seasonal and Holiday promotions – run special promotions during festive seasons or holidays when consumer spending is
typically higher.

 Sustainability and Ethical Practices – The company is committing to sustainability and ethical practices in its marketing
efforts. Consumers are increasingly conscious of the environmental and social impact of their purchases.
 Conclusion
 Because of robust domestic demand as well as foreign demand, the Indian textile industry's future appears bright. India is
pursuing several significant initiatives to grow its technical textile sector. Due to the epidemic, there is an increase in
demand for technical textiles used to make PPE gear and suits. The sector is being supported by the government through
financing and equipment sponsorship.
 With the introduction of major foreign businesses like Marks & Spencer, Guess, and Next into the Indian market over the
past ten years, the retail sector has seen fast expansion as consumerism and disposable income have increased. Growing
family incomes, an aging population, and rising demand in industries like real estate, hotels, and healthcare will all
contribute to the growth of the textile industry.
 After a detailed study and analysis of the company, we concluded that KOMAL TEXFAB PVT LTD company has been
performing exceptionally well like be it in production as the company’s turnover has been continuously increasing and
profit maximization over the years. The company has been able in managing stakeholders’ trust towards the company and
loyalty towards the company. The company has been able to manage a distinct image from its customers because of its
product quality, efficiency, and customer trust.
 Suggestions

 The company should try to enter into the e-commerce segment to broader its customer base and new distribution channels.

 As the world technology in the field of the textile sector is changing rapidly, the company needs to keep up with
technological advancement to achieve productivity and efficiency.
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