INDUSTRY PROFILE

India Textile Industry is one of the leading textile industries in the world. Though was
predominantly unorganized industry even a few years back, but the scenario started changing
after the economic liberalization of Indian economy in 1991. The opening up of economy gave
the much-needed thrust to the Indian textile industry, which has now successfully become one of
the largest in the world. India textile industry largely depends upon the textile manufacturing and
export. It also plays a major role in the economy of the country. India earns about 27% of its
total foreign exchange through textile exports. Further, the textile industry of India also
contributes nearly 14% of the total industrial production of the country. It also contributes
around 3% to the GDP of the country. India textile industry is also the largest in the country in
terms of employment generation. It not only generates jobs in its own industry, but also opens up
scopes for the other ancillary sectors. India textile industry currently generates employment to
more than 35 million people. It is also estimated that, the industry will generate 12 million new
jobs by the year 2010.
Various Categories
Indian textile industry can be divided into several segments, some of which can be listed as
below:
Cotton, Silk & Woolen Textiles
Readymade Garments
Hand-crafted Textiles & Jute and Coir

HISTORY:
The oldest cotton fibers and boil fragments, dated from around 5000 B.C., were
discovered in Mexico. In 5000 B.C., the Greek historian Herodotus reported of a
pant that bore fleece cotton has been worn in India and Egypt forever 5000
years. Cotton was grown by Native Americans as early as 1500. In England in the
1700s, it was against the law to import or manufacture fabric made of cotton since
it was a threat to the sheep and wool industry. American colonists were able to
grow lots of cotton, but processing was difficult. It was not until the 1700s that the
cotton industry flourished in the United States.
It was then that Slater, an Englishmen; built the first American Cotton Mill
has improved over the past centuries making cotton growth. These mills converted
cotton fibers into yarn and cloth.In1793 Eli Whitney developed the cotton gin,
which mechanically separates the seed from the lint fiber.
Whitney named his machine a gin, short for the word engine technology
and production much more efficient.

POLICY OF GOVERNMENT OF INDIA TOWARDS COTTON
INDUSTRY:
The Cotton production policies in India historically have been oriented toward
promoting and supporting the textile industry. The Government of India announces
a minimum support price for each variety of seed cotton (kappas) based on
recommendations from the Commission for Agricultural Costs and Prices.
The Government of India is also providing subsidies to the production inputs
of the cotton in the areas of prices. Its sort of a double-edge sword.


Major competitors in industry:
Company name Place
1) Paramount Textiles Mills Pvt. Ltd - Madurai
2) Siva Sankari Mills - Coimbatore
3) PEC Ltd - Delhi
4) Indus Fila Pvt. Ltd - Bangalore
5) Alok Industries - Silvassa
6) R.M. Mohite Textilies - Kolhapur
7) Sachin Textiles - Ichalkaranji
8) Kayaar Exports - Tiruchengode.
9) GTN industries - Hyderabad
10) GTN Enterprises - Kochin
11) Prathibha Syntex - Ahmedabad
12) Mandhana Weaving House - Tarapur
13) Bombay Royan Fashions - Sangli

PROBLEMS
Cotton textile industry is obsessed with many problems. Two main factors which
have wrecked die industry are Government's textile policy and the growth of the
power loom sector.
Power shortage-Textile mills are facing acute shortage of power. Supplies of coal
are difficult to obtain and frequent cuts in electricity and load shedding affect the
industry badly. This leads to loss of man hours, low production and loss in the
mills.
Low productivity of labour-Low productivity is another major problem of cotton
textile industry. On an average an Indian factory worker only handles 380 spindles
and 2 looms as compared to 1,500-2,000 spindles and 30 looms in Japan. If the
productivity of an American worker is taken as 100, the corresponding figure for
U.K. is 51 and for India only 13. Also industrial relations are not very good in the
country. Strikes, layoffs, retrenchments are the common features of many cotton
mills in the country.


SUGGESTIONS;

Tradition in Textiles and long operating experience
Large and growing domestic market
Strong raw material base
Production across entire textile value chain
Stable, low-risk economy, safe for business growth
Easy availability of abundant raw materials like cotton, wool, silk, jute
Widely prevalent social customs
Variety of distinct local culture
Constructive geographic and climatic conditions

ABOUT THE COMPANY:
The founder of Amaravathi Textiles Group who has drawn its future planned
growth. A man whose spirit of dynamism has helped the group to achieve manifold
growth. Thanks to his pioneering vision, the groups operation grew and market
extended. Today Amaravathi Textiles group is a multi-activity group with an
Rs.300crores turnover, comprising divisions with diverse interest in
COTTON
SPINNING
TEXTILE
A Star who shone in all his brilliance and dazzled everyone. With his
visionary leadership abilities and caliber. Unfortunately fate nipped his sparkling
career in the bud. Though short-lived, his visionary dedication continues to guide
the spirit of achievement and enterprise of Amaravathi Textiles across various
activities.


PROMOTERS:

THE BIRTH OF A DREAM
Sri Kandimalla Srinivasa Rao set up a cotton ginning mill in 1984. The operations grew
rapidly to lay solid foundations for giant surging ahead in diverse environments. To the group, the
future is rich in possibilities. A future where the best of minds and men will work. And will have the
most resources to draw upon. Its vision of the future where change will be embraced as the very basis
of opportunity and endeavor.
The managing Director of AMARAVATHI TEXTILES (P) LTD. Relentless pursuit of
perfection is the hallmark of this young and dynamic B.Tech Textiles Graduate.
His rich and professionals experience in the spinning line enabled AMARAVATHI Textiles
Spinning Division to scale new heights. His enterprising zeal and cautious planning have been the
pivotal points in driving the group towards trailblazing progress. Mr. Kandimalla Srinivasa Rao is
committed to labour welfare and his visionary leadership has earned him a wealth of respect among
the employees of AMARAVATHI. Astute professionals by habit, he is forever aiming higher. He is
widely acknowledged as the man who has fostered a can do culture which starts at top and filters
down to every employee at AMARAVATHI TEXTILES. He is powered by just one belief..
Success is a matter of excellence, and not chance.

AIM / VISION / MISSION

Always exploring ways to further the quality and maintain consistency of the product.
Efficient macinery combined with least possible wastages and an eco-friendly manufacturing
process aimed at increasing productivity thereby the organization growth and success


Amaravathi Product: YARN
COTTON
SPINNING
TEXTILE
The Amaravathi collection includes...
Cushion Covers, Throws, Futons, Floor Pillows, Table Cloths, Placemats, Napkins, Table
Runners, Terry Towels, Apron Sets, Tea Towels




Values and policies;
v Promptness in execution.
v Transparency in Business
v Integrity in Negotiation
v Innovation that fuels growth
We care for the environment
Amaravathi is committed to conservation of the environment. Our manufacturing facilities
comply with stringent environmental norms and are equipped for effluent treatment. The
Amaravathi dyeing plant uses reverse osmosis with a multieffect evaporator to qualify as a zero-
discharge unit.

ORGANIZATIONAL STRUCTURE
BOARD OF DIRECTORS

CHAIRMAN & MD





VICE
PRESIDENT
FINANCE
VICE
PRESIDENT
HRD
VICE
PRESIDENT
MARKETING
VICE
PRESIDENT
PRODUCTION
GENERAL
MANAGER
FINANCE
GENERAL
MANAGER
HRD
GENERAL
MANAGER
MARKETING
GENERAL
MANAGER
PRODUCTION
MANAGER
FINANCE
MANAGER
HRD
MANAGER
MARKETING
MANAGER
PRODUCTION

BOARD OF DIRECTORS
K.SrinivasaRao. Director
K.Bhaskar Director
K.Geetha Director
GENERAL MANAGER.
ShriP.Ramesh, D.T.T., B.A.,
ACCOUNTS MANAGER.
ShriN.Veeraiah, B.Com. A.C.A.
BANKERS
State Bank of India, Guntur
State Bank of Mysore, Guntur.
State Bank of Hyderabad, Guntur.
REGISTERED OFFICE
33-263, Kandimalla Road,
Pandaripuram,Chilakaluripet-522616
FACTORY
Martur-522301,
MarturMandal,
Prakasam District, Andhra Pradesh.


Major competitors in company:
Jagadguru textiles
Nsl textiles
Ysr spinning mills
Ml group

STRENGTHS

Vast textile production capacity
Large pool of skilled and cheap work force
Entrepreneurial skills
Efficient multi-fiber raw material manufacturing capacity
Large domestic market
Enormous export potential
Very low import content
Flexible textile manufacturing systems

WEAKNESS

Increased global competition in the post 2005 trade regime under WTO
Imports of cheap textiles from other Asian neighbors
Use of outdated manufacturing technology
Poor supply chain management
Huge unorganized and decentralized sector
High production cost with respect to other Asian competitors

Opportunities
1. Quotas carried on in China after 2005
2. Good political equation with EU and US
3. Improvements in infrastructure and regulations
4. Research and product development
5. Buyers preference for India, after China
6. Understanding buyers need because of language advantage

Threats
1. Rupee appreciation in last few months
2. Trade blocs and partnerships at the exclusion of India
3. Location disadvantage: long transit time to key markets
4. Pricing pressure, following opening up of quotas
5. Enhanced competition from other countries similarly constrained by quotas