2008
HOME FURNISHING
Presented by
Prasida Sushil
Gunjan Bagaria
Padmaja Jadeja
Lakshmi Vettom
Index
Sub Topics
Page Number
Introduction
Indian Home Furnishings History
3
3
Overview of Industry
9
Market Share
9
Product Segmentation
10
Growth Trends
12
Factors influencing Demand
14
Demand and Supply
16
Exports
17
Exports and Imports
Role of government regulation
20
22
Fiscal Policy of government
22
Impact of fiscal policy
25
Monetary policy
26
Impact of monetary policy
28
Recent Trends In the industry
28
SWOT Analysis
29
Branding
30
Players In the market
31
Technological Advancements
35
Future scope of industry in the market
45
Threats, risks and concerns
46
Conclusion
47
Home Furnishings
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A fast emerging economy in the world of home textiles, India produces a
wide range of products, including home furnishings, household linen,
curtain tapestry and yardage made with several textures and varying
thickness. The home furnishing industry mainly exports fabrics, bed
linen, table linen, toilet and kitchen linen, towels, cushions, curtains,
pads, tapestries and upholstery's, carpets and floor coverings, etc. The
industry has adopted several measures and techniques to offer
premium quality and eco-friendly products to the global industry.
Household penetration levels are high, especially in the largest sectors
— bedding and window dressings. While replacement due to wear and
tear is not inevitably frequent, an increased consumer interest in home
interior products has stimulated buying in what is now very much a
fashion-led industry. The industry also benefits from the growing
number of households, a trend, which is expected to continue at an
even faster rate.
Industry Definitions
– these are products related to bedding linen, window
screening, floor coverings, wall coverings etc.
 Furnishings
 Furniture
- Wooden and other fixtures that facilitate a bed, sitting
arrangements and so on.
Indian home furnishing history
The roots of Indian home furnishings industry lie deep in age old
traditions. Especially known for their ethnic, intricate carvings, weaves,
pattern themes, motifs, color schemes and workmanship, Indian home
furnishings have become popular the world across. Handcrafted ethnic
home furnishings are one of the most fascinating art forms in India and
Home Furnishings
3
lend an unmistakable grandeur to the decor.
In the world of hand looms, there are Madras checks from Tamil Nadu,
tie and dye from Gujarat and Rajasthan, ikats from Andhra and Orissa,
brocades from Varanasi, Daccai from West Bengal, and phulkari from
Punjab. The Surat tanchoi based on a method of satin weaving with the
extra weft floats, which are absorbed in the fabric itself, has been
reproduced in Varanasi. In the domain of Woolen textiles, woolen
weaves are no less subtle. The Kashmiri weavers are known the world
across for their Pashmina and Shahtoosh shawls. The states of Kashmir
and Karnataka are famous for their mulberry silk. India is the only nation
in the world producing all four commercially known silks - mulberry, eri,
tasser (tussore) and muga. Assam produces eri and muga silk, which
are gaining immense popularity in the U.S.A. and Europe. The ikat
technique in India is usually known as bandha in Orissa, patola in
Gujarat, pagdu bandhu, buddavasi and chitki in Andhra Pradesh.
The home textile industry is quite widespread in India. There are a
number of centres in India wherein the production of home textiles has
been undertaken since decades. The major home textile hubs in India
are:
Karur: Karur is a small town in Southern India that specializes in the
production of home textiles. It is especially known for the production of
pillow covers, bedspreads as well as kitchen and table linen. Table mats
from Karur are world famous. Karur mainly produces cotton home
textiles by way of hand looms, while power looms are gradually being
accepted. The traders of Karur are largely engaged in the supply of
home textile raw material throughout India, the major markets being
Delhi, Panipat and Mumbai among others. Some of them are engaged in
exports.
Account of large scale production, Karur gets the benefit of reduced
costs. This, together with the exceptional quality of its products, has
enabled it to carve out a niche for itself in the production of home
textiles. The turnover of the town was recently noted to be around
Rs.3000 crore.
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In spite of the obvious advantages that Karur has with respect to home
textile production, it also has several limitations in this respect. The
major drawbacks that the town faces are lack of proper roads, lack of
availability of skilled manpower, lack of communication skills, shortage of
good hotels and lack of organization, which limit growth to the full
potential.
The home textile producers of Karur specialize in certain finishes, such
as PVA, starch, stain repellent, water repellent and silicon finish. Some
producers have begun the use of organic cotton and the use of different
fabrics such as polyester, silk and poly cotton.
Panipat: The city of Panipat located in the state of Haryana is a major
producer of woollen home textile products. The Panja durries produced
in Panipat are famous the world over. These durries were initially made
by rural women as part of dowry for their daughters.
The Panipat home textile industry has now grown to the extent that it
earns a turnover of nearly Rs. 3000 crore per annum. The easy
availability of raw materials and economies of scale leading to low cost
of production are the major factors which have led to the development of
Panipat as a major production and export hub for home textiles. It has
also developed as a sourcing hub for raw material for home textiles.
Producers in Panipat have of late started experimenting with different
fabrics such as polyester, silk and poly silk. Some producers have also
started the use of natural fabrics such as bamboo and soya.
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Like Karur, Panipat also has certain limitations which prevent it from
reaching its full potential lack of mechanization and skilled manpower,
lack of proper organization as well as lack of efficient infrastructure
facilities. Palliwal Exports, SPJ Textiles Pvt. Ltd., Mahajan Overseas and
Liberty are some of the eminent players in Panipat in terms of home
textiles.
Cannanore: Cannanore, located in South India, is another hub that is
well known for the production of home textiles. About 60% of the textile
production done in this area is home textile. The home textile industry of
Cannanore has an annual turnover of Rs. 300 crore.
In spite of Karur and Cannanore being located close together
geographically, there is a notable difference between the products
manufactured in the two places. The water that is available in
Cannanore has special properties, due to which the fabric produced
here has a different kind of shine and look.
Home textile producers in Cannanore are beginning to use fabrics such
as cotton viscose, silk and cotton. Producers here are also adding value
with the help of embroidery, bead work and sequin work.
Chennai: Chennai is the fourth largest metropolitan city in India and is
the capital of Tamilnadu. It has emerged as a major production and
export hub for home textiles. Being well connected with other parts of
the world through road, air and water, Chennai does not face the
limitations as the other hubs do. Moreover, being a metropolis, it has
good infrastructural facilities and latest technology. It is comparatively
easier to obtain skilled manpower and intellectual designers.
Home textile producers in Chennai usually source raw materials from
Karur, to which value addition is undertaken. These producers are able
to deliver better quality products within a shorter period of time with the
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benefit of technology and the services of experts. Several of these
producers are also engaged in the export of home textiles. BKS Textiles
and ADJ Textiles are two major players in home textiles in this area.
Delhi: Delhi, the capital of India, has emerged as one of the major
production and export centres for home textiles. Being a metropolis, it
has an efficient infrastructure and easy availability of skilled manpower.
Most of the producers in Delhi source their raw material from Panipat, to
which value addition is done.
It does not face the problems that are faced by the other traditional hubs,
being one of the largest cities of India. Orient Craft, Modelama,
Handicrafts Collections, Trendsetters and Vrindavan Overseas are
among the major players in home textiles in Delhi and its surrounding
areas.
Mumbai: Mumbai, previously Bombay, the large metropolis and the
capital of Maharashtra, is also one of the major production and export
centres for home textiles. Like Delhi and Chennai, producers in Mumbai
also source raw material from places such as Karur, Salem, Erode and
Bengalooru (previously Bangalore) and add value to it. Home textile
producers from Mumbai are popular the world over for their unique and
innovative products.
Being one of the largest cities of India, it has the benefits of skilled labor
availability and efficient infrastructure. Due to the availability of
technology, these producers are able to produce large quantities of
products of the desired quality, within the desired time. Being located
very near to a port, the producers of Mumbai are able to export goods
easily and give delivery to clients within shorter lead times. On account
of the high operating costs in Mumbai, several producers have
Home Furnishings
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established plants in surrounding areas like Vapi and Solapur. Those
producers who have set up their plants in Mumbai have huge plants so
as to get the benefits of scale.
The home textile producers in Mumbai have carved out a niche for
themselves, particularly in case of bedspreads, pillow and cushion
covers and bathroom textiles. Alok, Siyaram and S.Kumars are the
major players in the field of home textiles in Mumbai.
Bengalooru: Bengalooru, previously Bangalore, is the capital city of
Karnataka. It has emerged as a manufacturing and export hub for home
textiles, especially in silk. Bengalooru is largely engaged in the
production of fabric, which is mainly done using power looms. This fabric
is then sourced to other parts of India for value addition.
On account of the high price of pure silk, producers in Bengalooru are
now experimenting with fabrics such as artificial silk, wool silk and cotton
silk among other fabrics. The producers in Bengalooru get the benefit of
modern technology and efficient infrastructure, as is the case with large
cities.
Mirzapur and Badhohi: Mirzapur and Badhohi are small cities located
in Uttar Pradesh, which are major centers for the production of floor
coverings and carpets. The collective turnover of the two cities is around
Rs. 2000 crore.
Being small cities, Mirzapur and Badhohi have infrastructural problems
such as poor roads, lack of reliable power supply and lack of hotel
facilities, due to which they have not been able to achieve growth to their
optimum potential.
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Jaipur: The Pink City of Jaipur has also become an important centre for
the production of home textiles, especially those using the traditional
techniques of tie-and-dye, block printing and appliqu. A few producers in
Jaipur have also started undertaking bead work to add more value to the
product.
Jaipur faces tough competition from Delhi on account of the
geographical proximity between the two regions. However, Jaipur gets
the benefit of lower wage rates as compared to Delhi.
Jaipur is a well-known tourist destination, visited by a number of foreign
tourists. This has helped largely in the development of Jaipur as a home
textile production and export centre
OVERVIEW OF HOME FURNISHING
INDUSTRY




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
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Home Furnishing in India falls under the preview of textile industry.
It is one of the fast emerging economy in the world of home textile.
There is a increased consumer interest in home interior products –
stimulates fashion industry.
The trend is expected to continue at faster rate because of the
huge investments.
Exports and imports are both picking up very fast.
The country's large and diverse cotton textiles industry is its
strength.
India's home textile exports are dominated by bed linen, table linen
and towels.
MARKET SHARE
 India is among the world’s top three suppliers of home textile
products
 80% of overseas shipment are sent to the US & EU
Home Furnishings
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



4% contribution to GDP
Provides employment to around 15 million people
Domestic market –USD 25 bn
Exports accounts –USD 13 bn
PRODUCT SEGMENTATION
India produces a wide range of furnishing products including home
furnishing household Linen, curtains tapestry and yardages. The home
furnishing mainly include
 Bed linen
 Table Linen
 Toilet & kitchen Linen
 Towels
 Cushions
 Curtains
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 Tapestry & upholstery

Carpets

Floor covering( durries and rugs)
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GROWTH TRENDS

Home furnishing is categorized into the organized and the
unorganized sector.

Industry is trying hard to be a dominating role in the international
market and has a dynamic supplier reach worldwide.

The unorganised home furnishings market is fast getting branded.

It is one of the prominent segments of the India's trade basket.

Big and small players covering one fifth of the country's home
textiles production. It is growing at the rate of 25%

Growth is forecast to be robust, especially as Western customers
come to appreciate traditional Indian specializations in
embellishments such as embroidery and patchwork.

Industry is expanding rapidly, with investments in home textiles in
the next two years expected to reach $1 billion.

While the growth rate in the furnishings industry was 30 to 40 per
cent in the past three to four years, it is expected to grow by 100
per cent in times to come.

The organised furnishings market forms a miniscule portion of the
total home market that is pegged at Rs 54,000 crore.
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Share of unorganized sector in India is much higher than other
countries .
GDP growth over the years
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FACTORS INFLUENCING DEMAND
Research has shown that the following factors have significant
influence in demand of home furnishing textile in the country.
. Many consumers value creating a social display at home of their
perceived or desired wealth and status and are willing to
accumulate debt through purchases of home furnishings and
equipment to fulfill that desire.
Today, credit does not hold the same negative connotation that
“debt” has held in the past; it is considered a typical part of
personal budgeting for the majority.
Consumers who are credit card borrowers (those who have
accumulated debt), place more emphasis on purchasing luxury
commodities such as household furnishings and equipment
including furniture, floor coverings, textiles, appliances, and small
equipment than non-borrowers do.
On average, consumers who are borrowers have more education,
are younger and predict higher future income for themselves than
non-borrowers. Borrowers spend less on necessities (shelter, food
at home, and utilities) and some luxury commodities (vacation
homes and out-of town trips), but spend more on household
furnishings and equipment, apparel, entertainment, andfood away
from home than non-borrowers.
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Residential interiors reflect personal, group, and sociodemographic
characteristics of the homeowner (i.e., age, gender, household
structure, and religious beliefs) through the design, meaning, display of
personal possessions, and use of the living space.
Residential interiors reflect personal, group, and sociodemographic
characteristics of the homeowner (i.e., age, gender, household
structure, and religious beliefs) through the design, meaning, display of
personal possessions, and use of the living space.
Men tended to make more occupation assessments based on
environmental cues, while women made more family status
assessments. Overall, work status, family status, and age were the
dominant constructs used by the subjects to assign social attributes to
room inhabitants.
Subjects used similar environmental features to assign social attributes
of age, class, and family status. The aesthetic and utilitarian appeal of
gadgets in the home has been popularized over the years to the extent
that the view of the "future home" has shifted from a "house full of
gadgets" to the "house as a gadget."
There has been a shift in residential technology from focusing on
automated gadgets (vacuums, blenders) to digital gadgets ("smart"
technology and networked computer chips).
This experiment explored the effects of hue, saturation, and brightness
on attracting people's attention. Colour can be used as a tool to
Home Furnishings
15
emphasize or de-emphasize architectural and interior design features,
since people cannot process every object within view at one time.
Designers should understand the effects of hue, saturation, and
brightness on "attention getting" as they select color schemes.
DEMAND AND SUPPLY
DEMAND TREND
 Residential interiors reflects personal, group and sociodemographic characteristics.
 Debt considered typical part of budgeting
 Increased use of credit card for luxury purchases
 Improved infrastructure and innovative product line
 Branding
 Rising income levels
SUPPLY TRENDS
 Diverse supply chain in terms of raw material, technologies and
products
 It supplies 70% by value to domestic market
 Distribution channel comprises of wholesalers and small retailers
Home Furnishings
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 Reduction in cycle time of supply chain.
EXPORTS
Rising inflation have made the home furnishing exporters especially
small and medium enterprise wary about the future of their business.
The home furnishing industry is one of the prominent segments of the
India's trade basket, with both big and small players covering one fifth of
the country's home textiles production.
But the rising inflation has created trouble as exporters of home
furnishing products have to retain a less margin of their finished
products, says Hitendra Sangal, MD, Indu Arts.
It is amazing to know that today India is the major producers and
manufacturers of home furnishing products. This sector manufactures
and exports spectacular range of finished products such as, furnishing
fabrics, bedspreads, curtains, durries, rugs, carpets, cushion covers,
place mats, table covers, linen, made-ups,kitchen accessories, bath
linen and many other home furnishing accessories globally.
Categorizing the organized and the unorganized sector, it is surprising
that both the industrial sector of home furnishing can generate the
potential heat in the market. Big players like Bombay Dyeing, Welspun,
Portico, Kurlon to name a few have made their own significant creations
in the segment.
According to a report, Tamil Nadu being a major exporter of textile is
looking for alternative markets in case of manpower in other states of
India where labour availability is not a big obstacle for manufacturing
home products.
Even the dollar depreciation did not provide any relief to the exporters as
increase in the prices of raw materials have affected the cost of
production of both small and big exporters of home furnishing . All these
Home Furnishings
17
have resulted in losses estimated to be between Rs 300 crore and Rs
600 crore at present.
Well, big giants like Bombay dyeing has finances which can support their
financial lose, but SMEs need help from the government as the cost of
production is spiralling to a tad. The expensive prices of raw materials
are not affordable. At the same time this would result in losing the
customers by charging them extra.
Currently, the Indian home furnishing industry is trying hard to be a
domineer in the international market and has a dynamic supplier reach
worldwide. They are just waiting for the fall of inflation so that they can
keep a better margin subsequently in the near future and make some
growth prospects of Indian home furnishing industry in the global front.
In this context K.V. Kamath recently told reporters: "The price hike of
commodities is not a long-term problem."
With their ethnic, intricate carvings, weaves, pattern themes, motifs,
color schemes and workmanship, Indian home furnishing products are
gaining immense popularity among buyers the world across. The share
of Indian exports in home textiles is increasing day by day. In 2002-03,
the value of export of cotton handloom fabrics and made-ups was Rs.
544 crore, the value of export of handmade carpet and other floor
coverings was of the order of Rs. 2590.26 crore and value of exports of
other home furnishing products was Rs. 2633.37 crore.
India is among the world's top three suppliers of home textile products.
In the financial year 2004-05, the country exported US$1.2 billion worth
of home textiles. Almost 80 percent of overseas shipments are sent to
the US and the EU. Export revenue in the current fiscal year is expected
to grow 15 percent to US$1.4 billion.
Home Furnishings
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The country's large and diverse cotton textiles industry, its strength in
embellished home textiles, and strong R&D capability are the driving
forces behind the home textile industry's growth.
However, the industry currently faces numerous challenges such as
stringent labour laws, competition from other Asian countries, a
fragmented textiles supply chain and poor export infrastructure, which
threaten to slow export growth.
The following are some of the trends we see in India's
home textiles export industry:
Export prices of most home textiles from India are expected to remain
stable in the next six to 12 months. Quotes of low-end and mid-range
products might increase marginally.
Most suppliers are projecting high export growth rates in the next 12
months despite the numerous impediments.
A large number of companies will expand or enhance their production
facilities. Some of the large makers are also vertically integrating their
factories in efforts to have better control over production.
India's niche in embellished home textiles will continue to give suppliers
an edge over competitors. Some companies will also increase R&D
focus on improving fabric quality.
The US and the EU will remain the top export markets for India's home
textile suppliers.
India's home textile exports are dominated by bed linen, table linen and
towels. These are also the scope of this report. A number of companies
profiled in this report also produce other home textiles such as drapery,
cushion covers, and kitchen linen.
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EXPORTS AND IMPORTS
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In the first nine months of CY2005, US imports grew by 7% to USD
8.9 bn and EU imports grew by 3.7% to Euro 54.5 billion.
India supplies over US$ 13 billion worth of textile and apparel to
the world markets, and the shared by the home furnishing market
is increasing export.
Indian carpet export promotion council (CEPC), set up by the
union ministry of textiles, is in the process of revising its strategies
and redrawing its road map with an eye on markets outside the
US.
Exports of Indian woolen rugs, durries and carpets fell of 7.07% in
2007-2008 that of handmade woolen tufted. Lesser exports of coir
mats with PVC base due to increasing cost of crude oil has seen
Indian coir exports lose both volume and value during may 2008.
Volume dropped by 3.1%.
Value fell by 8.2% when compared to the performance of May
2007.
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Products
Value of Exports
April- March
Value in Rupees Crores
2006-07
200708
April-March
Value in U.S. Dollar Million
Percenta 2006-07 2007-08
ge
@45.48 @40.25
increase( 10
13
+)
/decrease
(-)
Percentag
e
increase(+
)
/decrease(
-)
Handmade
2234.63
Woollen
Carpets,Rugs,Dr
uggets,
Durries,etc.
including
Cotton Carpets
excluding
Handmade
Woollen Tufted
Carpets
Handmade
1161.10
woollen tufted
carpets
2076.5 (-) 7.07
7
491.33
515.90
(+) 5.00
1156.7 (-) 0.38
0
255.25
287.40
(+) 8.68
Handmade Silk
Carpets
212.47
221.87 (+) 4.42
46.71
55.12
(+) 18.00
Handmade
Staple/
Synthetic
Carpets
Total
66.66
69.59
14.65
17.29
(+) 18.02
3674.86
3524.7 (-) 4.09
3
807.94
875.71
(+) 8.39
(+) 4.40
THE FOLLOWING PIE DIAGRAM AND THE TABLE SHOWS THE
EXPORTS TRENDS OVER THE YEARS.
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Export of handmade cotton floor coverings during 1999-2000 was Rs
4435802 (in 000's), of handmade cotton dishcloth in the same period
was Rs 143701 (in 000's), of handmade cotton table linen was Rs
4150857 (in 000's), of handmade cotton bedlinen was Rs 1369123 (in
000's), and of handmade cotton made-ups was Rs 6319979 (in 000's).
Today, the home furnishing industry in India is a force to reckon with.
Years of experience, skilled personnel, state-of-the-art manufacturing
and finishing machinery and designing equipment has established
India's home furnishings and textiles industry in the international arena.
ROLE OF GOVERNMENT REGULATION
EARLIER-1985
• Cotton textiles were given utmost importance
• Small scale industries highlighted
• Restrictions on installation of automatic looms
• Favorable fiscal treatment given to power looms as compared to
composite mills.
POST 1985
• Many segments, deserved from reservation for SSI( small scale
industries)
• Schemes for technology up gradation and modernization
introduced
• Emphasis on manmade synthetic fibers, in addition to cotton
Taxation structure made simpler.
FISCAL POLICY OF THE GOVERNMENT
Textile continues to remain an important sector of the Indian economy
and hence the industry is expected to enjoy necessary policy support
for its growth and development. The most significant policy initiative
has been introduction of Technology Up gradation Fund Scheme
(TUFS) that
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makes available long term loans at preferred interest rates for
undertaking modernization of existing capacities or addition of new
capacities. During May 2007, the limit for exempted commercial
samples
has been raised; exemptions relating to machinery or equipments for
effluent treatment plants have also been made available for handlooms
sector and amendment has been made in the CENVAT credit rules,
which
will support the textile industry.
The Union Budget for the year 200/-08 has made provision of Rs. 425
crores for Integrated Textile Parks, up from Rs. 189 crores in the
earlier year. A provision of Rs. 911 crores has also been made to
facilitate continuation of Technology Up gradation Fund Scheme.
However, this provision is considered to be inadequate and the
Government seems to be re-drafting the scheme as it has put it in
Abeyance for the time being. In handloom industry also, there is an
Increase in the clusters and health insurance schemes by enlarging the
applicability and allocation of funds from Rs. 241 Crores to Rs. 321
Crores. The outstanding credit limits have also been raised for small
and medium enterprises. There is also reduction in duty on Polyester
Fibres and Yarns from 10% to 7.5%.The strengthening Rupee has been
a dampener on the exports efforts. Government has taken cognizance of
this factor and recently announced enhancements in export incentives to
counter the effects of adverse foreign exchange movement. This
enhancement will come into effect retrospectively from April 1, 2007.
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TRADE
• Relief to exporters in FY09 to continue as required
• To develop handloom cluster at Varanasi, Shivsagar.
CORE SECTOR
• 250 clusters for handloom being developed.
GROWTH, INFLATION
• Manufacturing, services to grow 10.7%, 9.4% respectively
INDIRECT TAXES
• Some cuts in customs to protect industry
• Excise duty of 1%on polyester filament yarn removed
POSITIVE DEVELOPMENTS IN THE TEXTILE POLICY
• Reservation for small scale sector, especially key segments
removed over the last few years.
• Fiscal anomalies in terms of excise duties structure removed.
Technology up gradation fund scheme
• Launched in 1999, provided low interest loans for technology
upgradation in setting of new units
Policy related to foreign investments
• 100% foreign direct investment allowed in textile and apparel
manufacturing industry.
• Companies free to set up fully owned sourcing (liaison) offices, as
well as marketing operations.
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Upgrading infrastructure
• Scheme for integrated textile parks (SITP) public-private
partnership model for world class infrastructure facilities.
• Product specific cluster approach targeting development of 100
additional clusters in textiles.
• Technology mission on cotton focusing on cotton R&D
dissemination of technology to farmers, improvement of market
infrastructure and modernization of ginning and pressing sector.
IMPACT OF GOVERNMENT FISCAL POLICY
Exporters have to retain fewer margins on the finished goods.
Dollar depreciation did not provide any relief to the exporters as increase
in the prices of raw material have affected the cost of production of both
big and small exporters of home furnishing. This resulted in the losses
estimated to be between Rs 300 crore and Rs 600 crore at present.
Exports have increased profits are sliding as prices have dropped 8.20%
and the industry is on the verge of share market.
Labour law constitute a stumbling block in the economy, therefore
government grants in the economy to grant long term loans and adding
new capacity.
The textiles group has an overall weight of 9.8% in the WPI Index and
hence it is an important group in measuring inflation.
The index for 'Textiles' group rose by 0.1 percent to 140.3 (Provisional)
from 140.2 (Provisional) for the previous week due to higher prices of
texturised yarn (2%).
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The annual inflation in respect of the textile group of items was 6.29% as
compared to 11.44% for all commodities for the week ending October.
Increase in the number of handlooms.
MONETORY POLICY
The Reserve Bank of India (RBI) did take one rapid decision to cut the
cash reserve ratio, which has already unleashed about Rs. 600 billion
(around $13 billion) in the market, but frantic bankers are saying this is
just not enough to contain the crisis. Inflation at double digit levels has
already hit the common man hard. So policy makers have been
strenuously trying to ensure that price rise remains contained to the
extent possible. Their efforts have largely been stymied by the
phenomenally high world crude oil prices that have had their impact on
the Indian economy in spite of the minimal pass-on to the consumers at
the retail level.
Even so, inflation seems to have peaked and is now hovering around
11.5 per cent but moderation to single digit levels is expected only by the
end of the year. In this backdrop, the latest crisis with the stock markets
crashing and rupee falling to record lows against the dollar has come as
yet another blow to a government looking forward to reap the benefits of
its achievements.
The continued stability of the banking system, stock markets and the
economy in general. It is all the more disturbing for them since the
banking system in this country has not been exposed directly to the subprime crisis in the US and is actually only suffering from the indirect
impact of the ills facing the entire global regime. In fact, it was the
inherent strength of Indian banks that made most analysts confident that
the sub-prime crisis would blow over without having a significant impact
on this country.
Unfortunately, India can no longer remain immune to worldwide financial
Home Furnishings
26
panic and this has been reflected in the country's bourses that have
crashed during the past week. One of the major factors for this has been
the pullout of foreign institutional investors (FIIs) who have had to deploy
their funds elsewhere owing to the worldwide meltdown.
To add to the misery of investors, the rupee has fallen to historic lows
against the dollar. This is again an anomaly since there have been more
concerns about the rupee appreciating strongly against the dollar in
recent months, especially as it had affected export efforts. And the final
blow, of course was August's industrial growth data showing a minimal
1.3 percent rise, clearly indicating that recessionary conditions have
crept into the manufacturing sector.
On the plus side, the government has made all the right noises to soothe
the stock markets, which are generally prone to move nervously in times
of financial crisis. The crash of bourses globally is being described as
panic selling and the situation is no different in this country.
But on the negative side, the central bank and the government have not
moved fast enough to deal with this completely new and unexpected
reality of stock markets moving down in alignment with exchanges in the
rich countries. They will have to take decisions such as interest rate cuts
to release more liquidity into the system and allow the corporate sector
to make further investments in infrastructure and manufacturing to
prevent the onset of a recession.
This may not be the best move politically as it may push up inflation for
the time being, but clearly there is little option right now. And since there
is no room to manoeuvre, the government might as well act as fast as
possible before any more damage takes place.
The government is in denial and is unwilling to face the reality of the
current crisis. The fact is that it is alive to the reality but is uncomfortably
aware of the political impact of the decisions that will have to be made in
the next few days and weeks. And that has slowed down its response.

Interest ceiling on FCNR and NRE Deposits raised
 Bank overseas borrowing limit doubled
Home Furnishings
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
CRR cut from 7.5% to 6.5%
IMPACT OF MONETORY PLOLICY
Rapid decision of RBI to cut the cash reserve ratio, unleashed about Rs
600 million in the market.
Pull outs of foreign institutional investors, who have deployed their funds
elsewhere owing to the world wide meltdown.
Interest rate cuts to release more liquidity into the system and allow the
corporate sector to make further investments in infrastructure and
manufacturing to prevent the onset of recession.
Efforts to bring foreign funds, he doubled to 6 million dollars the
investment limit in corporate bonds by FII.
Will improve resilience of banking system
Attract more NRI investments
Another disadvantage the industry faces is the fact that the stock market
tends to amplify cyclical concerns. Therefore, a number of the
companies in this industry have taken a small beating in the light of the
recent equity market slide. Value Line does not believe, however, that
the future is as bleak here as the price declines would have us believe.
Residential furniture is usually in the most demand during periods of a
strong housing market and low interest rates, a situation we are in the
midst of right now. The Federal Reserve's recent reduction of short term
interest rates could very well create demand in this industry
RECENT TRENDS IN THE INDUSTRY

Home furnishing will remain a growth area.
 Manufacturers and exporters are expanding capacities.
Home Furnishings
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
Improved quality of products, with pressure on pricing.
 Marketing efforts in the segment are quite weak.
 Indian companies evolving from mere converters to vendor
partners of global buyers.
 The reduction in cycle time has lead to better business.
 Higher productive and competitive market.
 Constant innovation of textiles
 Investments in the industry has increased
 Policy measures initiated by the government are showing results
Attractive sector major players in textile are entering home
furnishing.
SWOT ANALYSIS OF HOME FURNISHING
INDUSTRY
Strengths



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


Dynamic suppliers of home furnishing textile world wide
India leading producer of manmade fibre and ranked 3 in cotton
Brand licensing
Reservation for small scale sector, especially key segments
removed over last few years
Fiscal anomalies in terms of excise duty structure removed
Capabilities across the entire value chain within the country
reduces lead time for production and reduces intermediate
shipping time
Indian companies have flexibility and skilled manpower to handle
small orders with complex designs
Opportunity
 Constant rise in country’s disposable incomes (estimated 2009-10
household with annual income ofUSD 980 or above will constitute
80% of the population)
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 India’s 2/3 population which is below 35years of age and spending
more on lifestyle products
 Growing of new retail formats and brands target at conscious
customers
 Invest in setting up vertically integrated large scale units
Weakness
 High reliance on raw material industry
 Labour intensive, thus low productivity.
 Lower technological advancements
 Efficiency is not optimum
 It largely consist of unorganised sector, yet to be explored
 Suffers at the both end of supply chain
 Indian firms are typically smaller
Threats
 While the market is very competitive at the low end of the value
chain, the mid or higher ranges are over prices
 Increasing rate of inflation in the economy
 Increasing cost of raw materials
 China is clearly leading exporter in the world of home furnishing
 Lack of price and quality parity
 Sustain balance between demand and supply
 Elimination of quota system thus leading to fluctuation of export
demand.
Branding
As the unorganised home furnishing sector generates the heat in the
markets, the organized sector, which includes giants like Bombay
Dyeing, Welspun, Portico and Kurlon among others, have made
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30
significant innovations and forays the segment.
Brand leader Bombay Dyeing has already stepped up its efforts to retain
leadership and market share. Vertically integrated Welspun dominates
the towels markets while Spaces, a new home textile brand has been
tapping the not-so-crowded home furnishing segment.
Creative Mobus Fabrics Pvt Ltd, has also focussed its attention on the
fast growing domestic market. After capturing international market, the
company, whose strengths are in sourcing, designing and
manufacturing, has now brought in a home furnishing brand from New
York, called Portico, through a licensing arrangement.
PLAYERS IN THE MARKET
The unorganized home furnishings market is fast getting branded. While
brand leader Bombay Dyeing has been trying to retain its dominance in
the category, brands belonging to Welspun, Portico and even mattressmaker Kurlon have entered the domain of home furnishings with an
added thrust on retailing.
Welspun, the major Asian manufacturer of terry towels has made a
foray into the domestic retail business with a home textile brand,
Spaces. Tapping the not-so-crowded home furnishing segment, Spaces
is expected to offer a range of bed, bath, and kitchen and table linen, all
specifically for the Indian market. The company exports its wares to 32
countries across the world.
The vertically integrated Welspun had so far restricted itself to towels in
the Indian market. With plans of expanding its capacities locally, while
also eyeing acquisitions, Welspun wants to replicate its success in the
export market by bringing in a new brand just for India.
Currently, the Indian market is dominated by the unorganized sector in
the home décor segment. their focus will be to incorporate the latest
fashion trends and contemporary styles in products so that our
customers can never run out of choice.
The advantage of being an export house will help companies like
Welspun, as they are constantly catering to the demands of the
international market — in terms of trends and designs — and can thus
use the expertise for the Indian market. With a plan to capture at least a
Home Furnishings
31
30 per cent share in the home segment, Welspun has roped in the
services of Ambience Publics to develop its brand, with an investment of
Rs 50 crore.
Another Mumbai-based apparel and home furnishing Export Company,
Creative Mobus Fabrics Pvt Ltd, has also focused its attention on the
fast growing domestic market. Having catered to the international
market, the company, whose strengths are in sourcing, designing and
manufacturing, has now brought in a home furnishings brand from New
York, called Portico, through a licensing arrangement.
To build the Portico brand, the company has appointed Contract
Advertising. With an ad budget of Rs 3 crore, Portico will carry the
baseline, `There is no place like Home.'
Launching the Portico brand of home furnishings in the domestic market
a few months ago, Vijay Agarwal, Chairman of the Creative Group, had
said, "Today's Indian woman is discerning and takes pride in her home.
She wants the best for her home. It is for her that we have brought the
Portico home label to India." Targeting a sales turnover of Rs 20 crore
within the first year, the Portico range offers bed sheets, curtains, bath
towels and cushion covers through almost 300 outlets across the
country. It has also entered into an exclusive tie-up with the Walt Disney
Company to sell a kids' range featuring popular Disney characters.
Through a licensing arrangement with Portico Homes of New York, the
range for the brand will be manufactured in India and positioned at the
premium end of the market. The products will be pegged from Rs 500
onwards and its most expensive bed-sheet will cost Rs 14,999. The
company has decided to simultaneously enter the retail market by
setting up its own chain of stores under the `Creative Living' brand
name.
Creative Living has already launched its first two stores in Bangalore.
Apart from selling the Portico range, the stores also stock allied retail
brands belonging to other companies. With a product range that includes
furniture, crockery and candles, Creative Living is expected to have
fifteen outlets across the country in the next two years.
Besides, there are also players such as the Bangalore-based Kurlon Ltd.
The pioneer and leader in branded mattress, Kurlon has now decided to
go beyond mattresses and is even contemplating getting into retailing in
home furnishings. There are plans to launch almost 50 stores under the
name of `Kurlon Nests' in major cities by the end of 2005. The company
Home Furnishings
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is expanding its range and venturing into soft furnishings and launching
bed and bath linen, curtains and towels.
There are also plans to make a foray into the global markets, starting
with Sri Lanka, Dubai and East Africa. Claims T. Sudhakar Pai,
Managing Director, Kurlon Ltd: "We are looking beyond mattresses and
India. To begin with, we intend having a base in Sri Lanka, setting up a
marketing and manufacturing unit there."
There is going to be an upheaval in the home furnishings category with
domestic players bringing in international quality home linen. In fact,
such players are already gaining share and increasing penetration
rapidly and it will get difficult for Bombay Dyeing to have a virtual
stranglehold over the market."
And it's not as if Bombay Dyeing has been sitting idle while the new
players have been making their entry. Having made a turnaround in its
domestic textiles business, Bombay Dyeing has decided to increase its
emphasis on brand building rather than rely on promotions to boost its
image.
Aloke Banerjee, Head of Domestic Business, Bombay Dyeing, says:
"Today, we have made better deployment of our resources and
utilization of ad spends. There are plans to have two-three ad
campaigns every year." After having unleashed a Rs 5-crore ad
campaign last year, the textile major this year has unveiled its first
campaign with a budget of Rs 5.5 crore. Featuring the Gladrags mega
model 2004, Amita Hotkar, as the new face of Bombay Dyeing, the
company wants to reinforce its dominant position in the bed sheets and
towels market.
"It is increasing competition which has made our focus more on brand
building than just promotions," says Banerjee. The company has
managed to post profits this year after restructuring its operations, which
included rationalizing its manufacturing operations and shutting down its
unit in Wadala.
The company continues its manufacturing operations at its Bleach
Works factory in mid-town Worli in Mumbai, but is on the lookout for new
facilities which will help it in further saving of costs.
Explaining the reasons behind the losses posted by the company in
past, Banerjee says, "Basically it was due to the restrictive quotas and
several costs incurred by the company." With the dismantling of quotas
Home Furnishings
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post-2005, Bombay Dyeing is hoping to regain its losses in export
turnover as well. At present, exports account for almost 50 per cent of
Bombay Dyeing's turnover.
Meanwhile, the Rs 1,000-crore Bombay Dyeing is all set to enhance its
image in the textile industry by spending lavishly on promoting its
baseline `Bring Style Home.' Adds Banerjee, "We want to project
Bombay Dyeing as an aspirational brand and our advertising is targeted
at building the mother brand of Bombay Dyeing."
KSA Technopack estimates the bed and bath market at Rs 1,800 crore,
growing at nearly 25 per cent per annum. Observes Saloni Nangia,
Manager, KSA Technopak"Just like apparel and footwear, the home
linen market is moving from unbranded to branded. In fact, more
international brands are likely to enter this market."
One of the oldest textile companies in the country, having turnover of
USD 231 million
Produces suitings, shirtings, sarees, towels, bed linen and men’s
apparel; significant exporter of polycotton blended fabrics and made
ups.
Welspun has a turnover of approx US$ 1500 million
(approx US$ 1000 Million from exports), The market
capitalization of the group stands at approx US$ 2000 million. Welspun
has set for itself a target of US$ 2000 million turnover by 2009 based on
concrete projects under advance stage of implementation and current
order book position.
Welspun India Ltd.
Home Textiles - Terry Towels, Bed Sheets
Welspun Zucchi Textiles
Bathrobes
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Ltd.
Welspun Retail Limited
Home Textiles under brands ‘Spaces Home &
Beyond'
and ‘Welhome'
Creative Mobus Fabrics Pvt Ltd, whose strengths are in sourcing,
designing and manufacturing, has now brought in a home furnishings
brand from New York, called Portico, through a licensing arrangement.
Targeting a sales turnover of Rs 20 crore within the first year, the Portico
range offers bed sheets, curtains, bath towels and cushion covers
through almost 300 outlets across the country. It has also entered into
an exclusive tie-up with the Walt Disney Company to sell a kids' range
featuring popular Disney characters.
A company with a turnover of Rs. 130 crores Mattresses,
domestic players like Jagdish Stores, Seasons Furnishings.
TECHNOLOGICAL ADVANCEMENTS
On the technology front, government has initiated efforts to encourage
manufacturers to go in for advanced technology. The grant has been
increased for helping manufacturers in the up-gradation of technology.
While China is clearly the leading exporter in the world of home
furnishings, it is not a direct competitor of India. While China mainly uses
man-made fibres and caters mass markets, India produces natural fiber
and serves niche markets. At present, India is leading producer of man-
Home Furnishings
35
made fibre and raked 3 in cotton. A garment-driven and export-led
strategy is expected to help the Indian market to grow to at $85 billion by
2010, according to a CRISIL report. The strategy should be focus on
moving up the value chain instead of exporting intermediate stage
products.
The Indian Scenario:
In the present scenario, technical textiles have been identified as a great
potential area for upgrading the Indian textile industry. Since the
conventional textiles industry has reached a level of saturation in terms
of development, innovation and value-addition, technical textiles offer a
great opportunity to succeed in the post WTO scenario.
Secondly as the country is transforming into a developed nation, huge
emphasis is being laid down in adopting latest technologies and
procedures in various fields. Therefore the market for technical textiles is
very positive and poised for a stupendous growth. Attractive statistics for
market potential seem inviting for global intervention.
Considering that India has a large pool of skilled and scientific/technical
manpower, it can play a major role in shaping the future of this industry.
Development of new fibers and technologies has led to the creation of
new applications of technical textiles, which is bound to enlarge the
market size and offer opportunities for high growth.
The growth of technical textiles will also lead to steep rise in the demand
for highly skilled manpower for both production & R&D. This should
throw open a new area that has tremendous opportunities of
employment, which is a major focus of the national government today.
Since the growth of technical textiles industry serves the interests of the
government and the nation, hence it is inevitable to see a major thrust
on the development of this industry by giving impetus on product and
local consumption. This offers a compelling reason for the buyers and
sellers of technical textiles to keep their focus on India and develop a
rational strategy to seize the emerging opportunities
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Nano Technology
Nano Technology means configuring molecules to change in size and
properties for enhancement as in the case of smart fabrics. Nano textiles
have variegated properties according to the application for which they
are to be used.
Apart from being spill resistant, water and dirt resistant, these fabrics are
also embedded with sensors to monitor biometric information like Heart
rate, respiration, and body temperature etc. Cotton, Lycra, silk, wool are
the commonly used fabrics which are blended with special nanotech
engineered molecules to render these unique properties.
The most fascinating aspect of nano technology is that the blending
does not effect the look, feel or integrity of the fabric that it is replacing.
These textiles are extensively used in manufacture of everyday
garments, automobile industry, aerospace, and defence, chemical and
engineering industries.
Unique features of Nano textiles are:

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Spill resistant
Resistant to dirt and water
Quickly sense changes in the surroundings
Can sense and monitor biometric information
Insulating Material
Insulating textiles are extensively used to keep away cold and damp
moisture in extreme climatic conditions.
Polyester fibres, cellulose, cotton, sheep wool, viscose, flax or hemp are
usually used in the manufacture of insulation textiles. Highly moisture
absorbent natural insulation materials can take up redundant moisture
from adjacent building elements and are ecologically harmless when
being disposed. A blend of polyester and polyolefin fine denier fibers is
also used for making these textiles. However, their composition varies
with application.
These textiles are extensively used in manufacture of garments for
areas, which have temperature below 0 o C, Mountaineering apparel,
Defense uniforms, Astronaut costumes etc.
The salient features of these textiles are:
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
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Extremely warm
Wind proof
Flexible Textiles
Abrasion resistant
Lines and Ropes
Technical Textiles used for making ropes and lines are highly strong and
have special functional properties depending upon the usage.
Usually made from polyester blended with polyolefin center fibers, these
textiles are extensively used for making lines and ropes for
mountaineering and other adventure sports.
High performance lines and ropes are also used in industries like
construction, aerospace, mechanical and engineering.
Salient features of these are:

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High strength
Very Flexible
Offer excellent grip
Abrasion Resistant
High tensile strength
Luminescent and Reflective Material
Luminescent and reflective textiles have the capacity to absorb and
store light energy when exposed to natural and artificial light sources
such as sunlight, U.V. lights, fluorescent light and continuously emit
stored energy in a form of visible light for a long period in the total
darkness.
These textiles are often made from polyester and cotton blended with
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glass beeds, reflective PVC etc.
Having the capability to enhance the visibility of the wearer, in daytime,
night time, or low light conditions, these textiles are used as safety wear
for fire men, traffic men and other personnels. These textiles are also
used for making warning boards or strips in industries like construction,
electrical, mechanical etc.
The salient features of these textiles are:
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Have optimum reflection index.
Abrasion resistant
Water proof
Wind proof
Highly stretchable
The features of these textiles vary with the application.
Shape Memory Materials
Shape memory polymer is a significant innovation, which can transform
the future of the textile and garment industry. These intelligent textiles
have the capability of remembering their original shape and returning to
it after heat treatment like washing or treating with steam.
Shape memory alloys; such as nickel-titanium are blended with fabrics
like polyester, acrylic, cotton etc to produce shape memory textiles.
Shape memory polymers can be used for textile finishing, fiber and filmmaking. These offer great opportunities for smart products and have
significant impact on textile, clothing and other industries like defense
and aerospace.
The unique features are:



Shape memory materials are stable at two or more temperature
states.
Can revert to their original shape on simple treatment
Offer good breath ability to the garment
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Smart Textiles
Smart or Intelligent textiles are those textile materials that think for
themselves. They can sense and react to external conditions and at the
same time retain the aesthetic and technical properties of textile
material.
They are principally designed for the protection and safety and are
extensively used in defense and civil defense sectors along with
aerospace, science and research, nuclear plants etc.
Depending upon the application, fabrics like cotton, acrylic, nylon,
carbon fibers etc. are blended with various compounds to render them
with both sensing and signal transmission functions. These are primarily
used to measure strain, temperature, displacement, pressure, electric
currents, magnetic fields, etc.
Unique features are:



Highly sensitive to changes in temperature and pressure
Can sense and protect from electromagnetic fields, bacteria etc.
Have the capability to send signals about the wearer's location
Soluble Textiles
Soluble textiles posses the property of getting dissolved in water at
temperature ranging from 37 o C to 40 o C depending on their
composition.
These textiles are commonly made from natural fibers blended with
soluble ingredients and are extensively used in medicinal applications.
Water-soluble garments are sterile hygienic materials used to help
protect patients and medical staff from the dangers of the infections to
which they are exposed in hospitals. Specific uses include surgical
garments and drapes, facemasks and shoe covers.
Water-soluble polymers are also used in industries like- food industry
fields, including food science, agriculture, ceramics, paper and ink
technology, explosives and the textiles.
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Fire Resistant
Thermal protective fabrics protect human skin from flames viz.;
convective heat, contact heat, radiant heat, spark hot gases and vapors.
Manufacture of fire resistant textiles for thermal protection is carried-out
by using inter dentally flame retardant fibers, such as aramid fibers,
polybenzimidazole (PBI) fiber, phenolic fibers, etc., or by chemically
modifying fibers and fabrics, for example flame- retardant cotton, wool
and synthetic fibers.
Thermal-protective textile feature :

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

Flame-resistance –they do not continue to burn and be a hazard
Integrity-the garments remain intact, that is they do not shrink,
melt, or form brittle chars, which may break open and expose the
wearer to the external conditions
Insulation- garments retard heat transfer in order to provide time
for the wearer to take necessary safety actions during combustion,
they do not deposit tar or other conductive liquids.
Liquid-repellency- they avoid penetration of oils, solvents, water
and other liquids drops of molten metal.
Flooring
High performance textiles used as floorings have unique properties to
bear extreme conditions and are suited for floors subjected to
mechanical exposure and mechanical abuse. These floorings are
extensively used in industries like Construction, Pharmaceutical, Home
Furnishing, Chemical, Aerospace etc.
Usually fabrics like cotton, nylon, acrylic, carbon fibers etc are blended
with various components to render these textiles special properties
depending on their final usage.
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These floorings have the following properties, which vary with the
application for which they are being used:

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

Thermal shock resistant
Chemical resistant
Anti Microbial
Fire Resistant
Abrasion Resistant
Geosynthetics and Geotextiles
Geotextiles are fabric or synthetic material placed between the soil and a
pipe, gabion, or retaining wall; to enhance water movement and retard
soil movement, and as a blanket to add reinforcement and separation.
Fluid transmission, Filtration, Separation, Protection Tensional
membrane, Tensile member, Barrier is some of the functions performed
by Geo Textiles. Non woven Geotextiles are usually made of
polypropylene fibers, which provide excellent physical and hydraulic
properties and are chemically stable in a wide range of environments.
Woven Geotextiles are used to stabilize road bases by separating and
confining support layers, particularly for moderate sub grades. They
provide high tensile strength and puncture/tear resistance to prevent
periodic over stressing of the sub grade and allow all weather
construction.
Geotextiles are used in industries like Transportation, Reinforced Soil,
Environment, Marine, Water Treatment etc.
Unique features of Geotextiles are:




High tensile strength
Puncture/Tear resistant
Chemically stable
Excellent filters
Anti Bacterial
Anti Bacterial textiles are the ones, which guard us against any type of
bacterial allergy or infection. They also have the capability to reduce
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bacteria induced odor. Anti bacterial textiles are mostly used in
manufacture of undergarments, socks, beddings for hospitals, blankets,
bandages, sanitary items, sports wear, special purpose uniforms etc.
Nano-sized silver particles have opened way to a new breed of antibacterial textiles. Scientists have now successfully incorporated silver
particles into polypropylene to produce an anti-microbial material that
could be used in anything from carpets, to napkins and surgical masks.
Often Anti Bacterial agents like Triclosan, are also coupled with acrylic
and other fabrics to produce antibacterial textiles. The advantage of
using these agents are:
Growth of bacteria, fungi and yeast on the fiber is inhibited. Antibacterial
properties do not wash out during laundering, and continue to inhibit the
growth of bacteria.
The unique advantages of anti bacterial textiles are:



It inhibits the growth of odor causing and numerous other bacteria
and fungi.
It lasts wash after wash for the life of the product.
It creates a zone of inhibition beyond the surface of the fiber.
Adhesive Material
Adhesives fabrics have the capability to ensure a long-lasting bonding
between various elements and are widely used in industries like
aerospace, automobile, automotive, water fabrication, IT, electrical,
metalworks, construction, aviation etc.
PolyTetraFluoroEthylene is the main constituent of adhesives. It is
blended with fabrics like acrylic and carbon fibers for varied end
applications.
The properties of adhesives are:


They stick well to the heating element yet allowing the heat to melt
and fuse the plastic - thus ensuring a permanent seal.
Can withstand temperature up to 2800 o. C.
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Some of the applications of different kinds of adhesive textiles are :
Fire retardant coatings Used by finishers for UL compliance
Pressure sensitive adhesives


Used for fabric laminating and apparel labels
Adhesion bond ranges from temporary to permanent
Heat seal adhesives



Non -fray coatings
Prevents materials from unraveling and alters the "hand" of the
fabric
Provides fabric with more body
Flocking adhesives
Used for apparel, fabrics and wallpaper
Anti Allergy
Anti allergic textiles are the textiles which are capable of causing a
reduction in predisposition to all types of bacterial, fungal allergies like
colds and flues, improvement in sleep, meditation and relaxation,
increase of lung capacity, relief from allergies, increased absorption of
Vitamins B and C, relief from migraine, respiratory tracks and nose
disorders, stress, etc.
These textiles are usually made from cotton mixed with acrylic or
polyolefin yarn. The textiles are often coated with silver due to its
medical and therapeutic benefits. A layer of pure silver permanently
bonded to the surface of a textile fibre, adds antimicrobial, anti-odour,
heat transfer, anti-static, anti-allergic and therapeutic properties whilst
retaining the base fibres characteristics.
Commonly used man made materials include Polyester, Polyamide
Polytetrafluroethylene (PTFE), Polypropylene, carbon, glass etc These
textiles are widely used in manufacture of beddings, sports wear,
hospital uniforms, surgical gowns, masks etc.
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Unique advantages of anti allergic textiles are:




High resistance to all types of bacterial and fungal allergies.
Long lasting textiles
Do not lose anti-allergic properties after wash
Available in disposable as well as non disposable.
FUTURE SCOPE OF INDUSTRY
IN MARKET
The future prospects for the Indian home furnishing industry are bright,
especially in the post-quota regime. The industry is in an expansion
mode and is expected to benefit from growing demand both in the
domestic and global markets.
While exports of Indian home furnishing products have increased, profits
are sliding as prices have dropped 8-20 % and the industry is on the
verge of a shakeout. With importers favouring suppliers with vertical
production systems rather than dispersed manufacturing facilities, Indian
exporters need to shore up their mass manufacturing techniques. The
major requirement is the development of infrastructure.
Labour laws also constitute a stumbling block in the growth of Indian
home furnishing companies. Political conditions have prevented
successive governments from instituting an exit policy. Because of this,
manufacturers cannot employ short duration labour as they cannot lay
them off when the world trade cycle turns. Low labour productivity is
another major constraint.
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Threats, risks and concerns
Capacities constraints
Earlier the textile industry faced a problem of excess capacities and
industry slowdown, but now the risk is of lack of scale and capacity
shortages. However, with leading Indian companies aggressively
investing in capacities under the TUF scheme, key players are well
positioned to manage this risk. Execution risk and infrastructure
bottleneck
India’s inadequate infrastructure is a cause of concern and poses a
significant execution risk for large Orders and timely shipments. Given
the time sensitivity of the textile business to changes in fashion
Trends and with exports contributing 30% of industry revenues,
infrastructure bottlenecks are a key risk to growth.
Foreign exchange fluctuations
With contributions from exports at 30% of industry sales and expected to
rise even further, volatility in foreign exchange, particularly any
strengthening of the rupee versus USD or the euro is likely to impact
Operations and overall profitability.
India is not a part of any trade bloc/ weakness
With India not being a part of trade blocs like NAFTA, AGOA, Caribbean
Basin, it does not enjoy duty-free/quota-free status or any preferential
access to the key developed markets of EU and US. This could affect
the free market dynamics in the home textiles segment, which could be
detrimental to the interests of Asian countries like India, China and
Pakistan.
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Conclusion
Home textiles will continue to remain an important growth area for the
industry. Good amount of orders are coming in, almost every important
manufacturer and exporter is expanding capacities. Qualities are
improving, but yes the pressure on prices remains. The industry is
expecting that the trade restrictions on China's home textile exports to
the US could lead to more orders coming to India. While this segment
has immense growth potential, infrastructure continues to remain a
problem, leading to higher costs. There is a lot of uncertainty about the
export incentive schemes. Marketing efforts in this segment are still quite
weak. According to Value Line, the overall earnings prospects for the
Furniture/ Home Furnishings Industry still look good, despite the touchy
economic situation that is currently occurring. The housing market
continues to be relatively strong, with the current interest rate
environment suggesting a continuation of this trend.
REFERENCES
1.
Capitaline, company websites.
2.
Ministry of Textiles Annual Report, Market Research.
3.
www.fibre2fashion.com
4.
Bureau of Economic analysis, stock market beat.
5.
www.india-exports.com
6.
www.newstrackindia.com
7.
www.smetimes.tradeindia.com
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