MBA Module 6-D Economics for Managers

1. 4
MODULE 6
Textile, Electronic, Automobile, FMCG,
Telecom, Pharma Industries
(Part 4)

2. Industrial Analysis – Textile Industry
1. Indian Textile Industry is one of the oldest
and most firmly established Industry in the
country.
2. There are 1100 textile mills (900 spinning
mills and 200 composite mills) in the country.
3. This industry has extremely complex, as in
broad lines, one is mechanically operated mills
and other is the hand-spinning and hand-
weaving mills in the country.

3. Industrial Analysis – Textile Industry
4. In between these there exists, the
decentralized power looms and small scale
industry (SSI Textile Units).
5. Textile Industry contributes 4% to GDP,
6. Textile Industry contributes 33% to India's
total exports,
7. Textile Industry is estimated to double its
trade for the financial year 2012,

4. Industrial Analysis – Textile Industry
8. Textile Industry gets their raw material,
market from India's domestic market and is
exported to various developed countries.
9. The success of Textile Industry is due to
availability of cheap labor,

5. Industrial Analysis – Textile Industry
Categories in Textile Industry:
The organized textile Industry has three
distinctive categories:
1. Spinning Mills, (Generally its small in size)
2. Coarse Medium Composite Mills, (Mills operating with the
support of ROUGH TEXTURE THICK THREAD Unable to
compete due to rise in cost of raw materials and labor, and
most have shut down)
3. Fine and Super Fine Composite Mills, (Export based mills,
who have their customers mainly in the international market)

6. Industrial Analysis – Textile Industry
Problems faced by Textile Industry:
1. Government Control and heavy excise duty,
2. Problem of sufficient raw materials,
3. Outdated Machinery requires modernization,
4. Competition from foreign markets,
5. Competition from domestic markets,

7. Industrial Analysis – Textile Industry
Industrial Analysis of Textile Industry:
1. Threat from New Entrants,
2. Bargaining powers of the suppliers,
3. Bargaining powers of the buyers,
4. Threat from substitute products,
5. Competitive rivalry within the Industry.

8. Industrial Analysis - Electronic
The Industrial Analysis of Indian Electronic
Industry are as follows:
1. Fast and drastic change in technology and
choice of consumers,
2. Competition within domestic and
international Industry,
3. Availability of raw materials,
4. Capital requirement and Economies of scale,
5. Long channels of distribution, eats away the
profits,

9. Industrial Analysis - Electronic
The Industrial Analysis of Indian Electronic
Industry are as follows:
6. Government policies,
7. Bargaining powers of suppliers,
8. Bargaining powers of buyers,
9. Threat from substitutes,
10. Intensity of rivalry with in the Industry.

10. Industrial Analysis - Automobile
Liberalization of Industrial Policy has given a
tremendous growth to the Indian Automobile Industry,
The Automobile Industry witnessed the entry of new
manufacturers with a state of art technology,
The Indian Automobile Industry comprise of
tremendous growth in Passenger Cars, Two Wheelers,
Three Wheelers, Commercial Vehicles and Multi Utility
Vehicles like, Taurus Trucks, Buses, Wagons, Low,
Medium and High bedded trucks and so on...

11. Industrial Analysis - Automobile
It is observed that the Indian Automobile
Industry is growing at an average of 15% per
annum.
There is a contribution of 3.5% export of total
production in 2001 to 8.5% during 2006, which
include exports to developed nations like US
and Europe.

12. Industrial Analysis - Automobile
Industrial Analysis of Indian Automobile Industry
are:
1. Threat from New Entrants,
2. Bargaining powers of the suppliers,
3. Bargaining powers of the buyers,
4. Threat from substitute products,
5. Competitive rivalry within the Industry.

13. Industrial Analysis - FMCG
Industrial Analysis of FMCG Industry are:
1. Threat from New Entrants,
2. Bargaining powers of the suppliers,
3. Bargaining powers of the buyers,
4. Threat from substitute products,
5. Competitive rivalry within the Industry.

14. Industrial Analysis - Telecom
Industrial Analysis of Telecom Industry are:
1. Threat from New Entrants,
2. Bargaining powers of the suppliers,
3. Bargaining powers of the buyers,
4. Threat from substitute products,
5. Competitive rivalry within the Industry.

15. Industrial Analysis - Pharma
Industrial Analysis of Pharmaceutical Industry
are:
1. Threat from New Entrants,
2. Bargaining powers of the suppliers,
3. Bargaining powers of the buyers,
4. Threat from substitute products,
5. Competitive rivalry within the Industry.