A MEASURE OF THE TEXTILE INDUSTRY
After an extended slowdown, the textile sector in India is booming again, with exports rising. This has boosted the demand for IT solutions and services around ERP, PLM, PDM and design software
According to India Brand Equity Foundation (IBEF), the size of India’s textile industry is around ` 5,40,000 crore. Buoyed by strong domestic consumption as well as export demand, this figure is expected to reach ` 8,58,000 crore by 2016.
Experts say the demand for IT from the textile vertical will be driven by the organized apparel segment which is expected to grow at a CAGR of more than 13 percent over 10 years. The apparel accounted for 69 percent of the total market size, and textiles contributed 31 percent in 2012.
The total exports of textiles and apparels from India grew to $34 billion in FY2012-13 from $17.6 billion in FY2006-07. According to Prem Malik, Chairman, Confederation of Indian Textile Industry, India’s textile exports will cross $40 billion in the current fiscal.
Says A Sakthivel, President, Tirupur Exporters Association, “Some time back units in Tirupur were underutilized due to the slowdown that had gripped the US and Europe. But now the units are flooded with orders, so many of the exporters and manufacturers are scaling up operations and looking for IT solutions.”
The central government has taken a number of initiatives to attract foreign investments in the textile vertical. It has allowed 100 percent FDI through the automatic route. In the 12th Five Year Plan (2012-17) the government intends to spend $9.1 billion on textiles as against $4 billion in the 11th plan.
Under the Technology Upgradation Fund Scheme, the cotton textile industry in India will receive margin money from the ministry of finance. The industry is also expected to attract ` 4,000 crore in the form of investments over the next six months. Malik says that these steps will reflect in increased technology spending. The restoration of the benefits of the Incremental Export Incentivization Scheme will reflect in the export performance during the remaining part of the year.
The largest opportunity in the textile vertical lies in ERP integration. While many of the small scale companies use home grown or legacy ERP solutions with non-integrated modules, they are now realizing benefits of an integrated ERP.
“Inaccuracies creep in with non-integrated manual records and reporting processes, manual inventory and manual store management. This adversely affects the production cycle while increasing working time and effort,” points out Moin Shaikh, Director, Innovative Telecom & Softwares, Surat.
The textile vertical faces the pressure of adapting to changing markets and consumer trends from time to time. Manufacturing in time to meet fluctuating and speedy demands requires a robust supply chain.
“This is why many textile companies, especially export-oriented ones, are opting for integrating modules such as finance, production, sales, exim and warehouse with processes like knitting, weaving and warping. Besides, the integration of the attendance and leave tracking system with payroll, and the integration of payroll with finance eliminates manual data entry,” explains CA Kunal Singhal, MD, Easy Business Solutions. The company has deployed its EasyERP solution in organizations such as the Oyster Group and Amartex Industries.
Adds Bhavesh Rathore, Director, MicroHard IT Solutions, Surat, “Many textile customers are opting for integrated ERP solutions under pressure from their customers who demand barcoding of products, end-to-end tracking of batches, and automated billing. Add to this, the short timelines and you see the need for an integrated ERP solution.”
MicroHard has implemented ERP
“The textile units in Tirupur are now flooded with orders, so many of them are scaling up operations and looking for IT solutions” A SHAKTHIVEL President, Tirupur Exporters Association
solutions worth ` 50 lakh-`1.5 crore for organizations like the Mafatlal Group, Kejriwal Industries, Sahiba Group, Aaiswarya Dyeing & Printing Mills, Durga Textile, Luthra Dyeing & Printing Mills and Nakoda Textile Industries.
Product management (PLM)
PLM software is gaining popularity because it helps to organize data and respond to new fashion trends quickly. Explains Girish Madhavan, MD, Quadsel Systems, Chennai, “Since fashion trends and designs change swiftly it is essential that everyone works on the same page. PLM software ensures that everyone is using the same data and working on the same platform, thus improving internal and external communications.”
Many of the small textile companies with smaller budgets opt for product data management (PDM) software which is a subset of PLM. While PLM finds a place in large textile companies, PDM is meant for smaller entities. It organizes and records details such as garment specifications and bill of materials. It also aids in the optimum use of production resources and limits the wastage of raw materials.
According to Nilesh Kuvadia, MD, ITCG Solutions, Vadodara, “PDM brings automation at the batch process level of manufacturing, and it can be integrated with ERP to automate the supply chain. A typical PDM solution requires an investment of ` 25 lakh-`30 lakh.”
With online buying growing, many garment manufacturers and retailers are opting for the e-commerce platform. “These customers want to leverage the benefits of an online presence, especially cost savings,” says Madhavan. “More than as a sales platform, they utilize it to generate awareness about their products. They also run loyalty programs through e-commerce sites.”
He adds that most exporters and manufacturers also opt for e-commerce platforms to buy and sell raw
“PDM brings automation at the batch process level of manufacturing. A typical PDM solution requires an investment of ` 25 lakh-`30 lakh” NILESH KUVADIA Managing Director, ITCG Solutions
material. Besides, most garment exporters opt for video conferencing solutions with HD cameras to display the quality and designs to their customers abroad.
Fashion designing software is an asset which every apparel and textile company needs for designing textiles and garments. These software packages help designers to experiment with a number of textures, colors and patterns.
Shaikh explains that companies spend at least ` 5 lakh-`10 lakh on graphics workstations and ` 15 lakh-`20 lakh on designing software such as Adobe Photoshop and CAD. “In addition, we are seeing growing demand for virtual garment design and simulation software which offers mechanical simulation, collision detection and user interface techniques for creating garments.”
Partners agree that the textile sector will offer huge opportunities over the next 2-3 years. “The fact that only 20 percent of the textile and apparel companies in and around Surat have integrated ERP shows the extent of the untapped opportunity since there are still a large number of customers to address,” says Rathore.
Concludes Shaikh, “The need is to educate customers about the benefits of and savings with IT solutions, and to create affordable solutions such as cloud-based ERP to address their needs.”