The Textile Industry – Part II

A brief outlook on The Indian textile industryAt a broader level Indian Textile Industry can be divided into two categories: Organized and Unorganized.Despite India being an emerging economy, the Indian Textile Industry is largely unorganized and still relies largely on traditional means in cloth manufacturing and is also highly labor intensive in nature. The clothes are produced with the help of hands via weaving and spinning methods.The remaining half of the industry is very much organized with high importance endowed on capital intensive production processes. The sector depends on sophisticated mills by way of which technologically superior machines are utilized for mass production of textile products.Further classification of Indian Textile Industry• Textile industry employing fiber derived from man made means or natural cotton.
• Yarn industry using fiber or filament, similar to the man made variety
• Textile industry centered on production of wool, its offshoots and woolen products.
• Textile industry based on production and processing of Jute.
• Textile industry centered on mass production of natural silk and final products from silk
• Handloom Industry
• Handicrafts industry which is primarily unorganized in natureThe textile industry employing fiber derived from man made means or natural cotton.This sector is looked upon as the largest producer of textile products. In terms of employment opportunities, the sector employs maximum number of people in the entire industry which is said to be around a mind-boggling one million workers. According to the latest estimates by Ministry of Textiles, the total number of mills in this particular sector stood at 1818 in number. The total capacity of all these mills total to* 35.37 million spindles and * 0.45 million rotors In between April -December 2009, the production of cloth made from man-made fibre accelerated by 21.3 percent.Spun Yarn industry can further be segregated into two sub-sectors:-• Cotton Yarn Manufacturing industry: The production is directly related to the production of cotton on year-on-year basis, whose production in turn largely depends on the vagaries of nature. Therefore it is widely observed that the rate of production in this sector, more often than not fluctuates.• Non cotton yarn producing industryThe industry is growing at an unprecedented speed for the rate of production in this sector has accelerated on a consistent basis. The period between 1999 and 2005, the capacity of this sector increased between 80 and 93 percent.Organized sector is going through a rough patch and the reason cited being the tweaking of the structural set-up. Of late the weaving sector has been separated from the spinning sector causing the rise of powerlooms of decentralized nature. In the recent years the production capacity of the organized sector plummeted by 0.54 lakh between March 2000 and January 2007.Nonetheless, the organized sector seems to be fairing better than unorganized one with a yearly growth rate of almost 5.4 percent.Yarn industry utilizing fiber or filament can be divided into two divisions:-• Industry type consisting production of cellulosic fibers or filaments
• Industry type consisting production of non-cellulosic fibers or filamentsTextile industry centered on production of wool, its offshoots and woolen products.• Its export oriented
• Production base is mainly located in the rural areas
• Both organized as well as non-organized units dominate this sector.India’s contributes nearly 1.8 percent of total production of wool in the world. This sector is known for its high employment generation capacity. By 2006, twenty seven lakh workers were working in this sector. At a broader level, the total raw wool production in India can be segregated into three major grades:-• Carpet Grade comprising 85% of the total raw wool production
• Coarse Grade comprising 10% of the total raw wool production
• Apparel Grade comprising 5% of the total raw wool productionNonetheless, it has been found that the demand for raw wool in India is more than the output; hence large part of the local demand is met through import of raw wool. Wool is said to be the only natural fibre in which the country has not yet achieved self-sufficiency.The sector also attracts foreign exchange earning from export of woolen products.At present there are 958 woolen units in the country, the majority of which fall in the small scale sectorSome of the exclusive items used in the production of wool fiber in India include: Pasmina and Angora.Textile industry based on the production and processing of Jute.Significant part of Eastern India is into production and processing of Jute, West Bengal in particular. Nearly 4 million farm families depend on it. The industry provides direct employment opportunities to 2.6 lakh industrial workers and another 1.4 lakh people in the allied sectors. In the world market, the contribution of this industry is noteworthy. The export earnings from the sector stand at Rs.1200 crore. In export of final jute products, India bags second position in the entire world. Besides, revenue also comes from government and private orders for packaging purposes.The special features of Jute:-• Natural Fiber
• Biodegradable product
• The fibers can be renewed after use
• Eco-friendly in natureIn India, Raw Jute is manufactured in the following states:-• West Bengal
• Assam
• Bihar
• Andhra Pradesh
• Meghalaya
• Orissa
• TripuraThe total production of raw jute in India is almost 90 to 100 lakh bales. The industry gets good support from the government. The crucial support comes in the form of Minimum Support Price. The support price increased from Rs.910 to Rs.1000Textile industry centered on mass production of natural silk and final products from silkIndia is leading producer of silk in the world, second largest producer to be precise. Of the four varieties produced, Mulberry accounts for 88.7 percent, Eri account for 8.4 percent, Tasar 3.8 and Muga silk 0.6 percent. Its contribution to the total world production of silk is about 18 percent.The rearing and breeding of silk worms as well as the production of raw silk are known as Sericulture. The industry is considered as one of the top cottage industries in India. Over fifty thousand villagers are into silk production. One of the most remarkable aspects of this industry is its labor -intensiveness.The different people involved in Sericulture include:-• The workers who produce silkworm seeds
• Farmers who rear the silkworms
• Workers who are into reeling
• Workers who are into twisting the silk
• Workers who weave the silk
• Workers who spin of silk waste
• Dealers of SilkThe significance of Silk Industry can be outlined as follows:-• Fewer Investments required.
• Return on investment quite high
• Nearly 6 million people employed in this industry.In 2004-05, the amount of silk produced stood at sixteen thousand and five hundred metric tones which scaled up to seventeen thousand and three hundred five metric tones during 2005-06. The foreign exchange earned by the industry in 2005-06 was Rs.3158.16 crore.The silk export items of India include:-• Fabrics
• Waste of silk
• Carpets made up of silkHandloom IndustryHandloom industry occupies second position in terms of livelihood after agriculture. Over the years, this sector’s production has increasedDisadvantages linked to Handloom Industry in India• Technology is outdated
• Production system not organized
• The turnaround is relatively low
• Working capital for this industry is pretty low
• Marketing aspects is almost zero
• Innovation is significantly low.Handicraft industry:Handicraft industry is one of the most traditional industries in India.Special features of this industry include:• Capital requirement is reasonably low
• Provides employment opportunities to large number of people.
• Most of the handicraft items are exported; thereby help earn foreign exchange for the artisans and the country.Nearly 63.81 lakh people were employed by this sector.The total number of people employed in this industry amounts to 63.81 lakhs.

Construction Contracts and Tenders in the UK: Facts, Figures

Construction ContractsEach year, public sector contracts account for nearly 40% of construction work available. These commissions total in value of over 33 billion. To claim a portion of the construction budget, businesses must secure tenders. The tender process is the method businesses are required to follow to make their bid on construction contracts. Tender opportunities vary based upon the needs of the public and private sectors.Sectors where construction tenders are plentiful include schools, hospitals, social housing and roads. The housing sector alone accounted for over 1.7bn in construction across all departments. Tenders are typically related to construction machinery, construction equipment, roof works, special trade construction works, repairs of building installations, maintenance service of building installations, architectural contracts and other related services.Local Authorities & Construction ContractsLocal authorities have budgeted expenditures in the UK for 2010-2011 year at 121.9 billion. Fourteen percent of this budget is expected to be spent on housing, and 38% of the budget is expected to be spent on education. Currently, the UK local authorities have several construction contracts underway and several more planned. Many of these contracts consist of:• Department of Children, Schools and Families projects• Department of Transport projects• Community and Local Government projects• Department of Health projects• Ministry of Justice projects• Department of Culture, Media and Sports projects• Department of Environment, Food and Rural Affairs projects• OthersThe budget percentages are not indicative of the remaining contracts in construction for 2010-2011. A large portion of the construction contracts will be allocated towards construction projects related to health. The Department of Transport and Department of Children, Schools and Families also account for a significant portion of the budget. Over 17 million will be spent in the Department of Health, and over 26 million in the Department of Transport is remaining on the budget for this year. Over 8 million in contracts are remaining and will be allocated towards construction related to education.
Construction Tendering ProcessThe construction tendering process is similar to obtaining tenders in other industries. Most businesses simply locate a tender provider, select a tender and bid for the business. Since the government supplies 25% of local employment, many construction tenders are public contracts. Hence, many businesses rely on government tenders as a vital source of income. The private sector may also provide tenders through tender opportunity providers. Tenders are provided online, by phone or by email. Depending upon the mode of retrieval, tender searches vary. Elaborate websites have been developed to make tender searching easier and more convenient. When tenders are displayed in real time, businesses that identify them quickly have a competitive advantage.Selecting an appropriate tender provider is almost as important as bidding for the opportunity. Many tender providers offer construction businesses more opportunities than others. The more opportunities available to businesses, the more likely the business will land a viable contract. Ensure that the tender provider offers tenders from both the public and private sector. This will guarantee that your construction company finds the best opportunities.Through tender websites, businesses may search for tenders by industry, region or other advanced methods. During registration, some websites will gather information about the business to deliver relevant tender opportunities via email. When the company finds a relevant tender, a representative of the company will prepare a PQQ or ITT. These documents contain questions that businesses must adequately answer regarding the opportunity. The questions must be answered thoroughly to demonstrate your business’s competitive advantage over other businesses bidding for the same construction contracts.Some companies that apply frequently for construction contracts may be tempted to copy and paste answers into the fields provided. While this saves the company time, often the information is not relevant to the question asked. If the information is not relevant, this will make the company appear less informed about the opportunity. The evaluator will then select the next applicant that provided a detailed description of how the project will be completed. The business with the lowest bid that meets the project’s needs will win the contract. When the bid is won, the construction company is expected to meet the criteria outlined in the bid, including the bid price. Those who do not may be penalized.Businesses that are focused on local authority contracts should recognize that small and medium sized businesses are considered. In 2004 and 2005, these businesses won 59% of the total local authority contracts. Construction contracts were included in this percentage. These types of businesses are encouraged to take advantage of the local authority budgets as well.
Lower Value ContractsContracts valued under 100,000 are considered lower value contracts. Some contracts are bid below cost to provide services under special circumstances. Many of these lower value tenders are often found in construction, transport, security and electrical. Businesses should be aware that these contracts exist. Lower value tenders serve as an alternative source of income. Companies that perform well on these contracts may be considered for other tenders at full value.
Changes in Construction TenderingIn 2009, over 13 million was allocated to construction by the local authority, according to the Office of National Statistics. The amount increases steadily year after year. Since 1997, the local authority budget for construction has increased by over 10 million. Each year, the budget increased incrementally by 2 million, despite the global recession. Construction tendering is a viable way for companies to earn a sustainable income.Currently, the public sector accounts for 40% of the total construction commissions totaling over 33 billion. While local authority construction contracts and other public sector contracts are a sound source of income, they are not the only source of income in the construction industry. Businesses should also consider the private sector and others as a source for tenders. This will increase a business’s chances of obtaining a high value tender.SummaryBusinesses seeking construction contracts will find over 51,000 new opportunities published each month on some tender websites. Each contract is valued based upon the work performed and the length of the contract. Construction tenders typically hold a higher value than other tenders, because the projects are larger and more labour intensive than other tender opportunities.Construction is a sustainable source of income for businesses located within the UK. Construction companies should develop strategies for bidding that will highlight their competitive advantage over other bidders. This will increase the number of successful bids made by the company. Companies that consistently win bids will increase revenue and sustain their business.

How To Start A Home Based Business

Everyday people flock to the Internet to look for their perfect internet based business for various reasons.Some end up worse off than they first started. Why? many are not prepared to start a home based business.Before you start, ask yourself these questions?1. Is it Internet based? You can leverage on the internet to communicate, do business plan presentation,
automate service delivery etc. With the advancement of the technology, Internet based type of business become more and more popular.2. What business model do I use? If you want cut short the product creation time, you can use other people’s business model. Find a business model that is already working and proven. This will save you time and money.3. Do I get strong support? A perfect Internet home based business should also work life a brick and mortal
business in terms of support and training. Except the delivery of support is via phone, email or the Internet.4. What marketing strategies do I use? Every body know marketing is the key to doing any business. The difference is in the strategy. Some strategies work, some don’t.5. Do I have the tools available? Tools can save you time but not necessary save you money. There are numerous of tools which help you from doing competition research to product creation and delivery tracking, use tools to save your time. You have only 24 hours a day, anyway.I find that a perfect Home based business, it must first meet the “home based” criteria, meaning you literally need not go out for a single meeting or even deliver a single piece of good. If you find one that meets the above criteria, you can start fast and earn money from home.Now that you know how to start a home based business, there are other factors that may help you how to start a home base business.Know Your Strength Knowing what you are good at may help you to choose a home business that you will enjoy and do well. Knowing your strength will increase your chance of success. For example if you are a very organized person and love to write, you can be a good article write.Choose Your Business ModelsThere are various internet home based business models which you can model after. These models varies from email marketer, which need no website to super stores with very fanciful web storefront.Know Your Product and ServicesFor most if us, we are not super sales person. If you know your products and services well, you are going to tell your customer from your own experience. People can tell if you believe in your products. Many a time people buy you first before buying your products. If you are familiar with your products and services, you will sell more.Your Business Needs Time to GrowRemember that most home businesses take at least months
before you really start seeing the return of your investment. It is important to track the growth month by month and you are able to project your break even period.Stay Within BudgetAs tools are necessary to help you save time, plan carefully your initial investment and monthly expenditure. Plan and get the most needed business tools first. Defer the other to later.Treat It Like A BusinessRunning a home based business can be more difficult than running a traditional business. Many distractions: Kids, TV , your bed, etc.Be discipline to work on your home based business and be enthusiastic about it. Motivation is the key for you to keep going on and stay on course.If you treat your home based business like a hobby, it will pay you like a hobby. Treat it like a real business, it you pay you like one.Marketing Marketing is how you get your customers. Now there are many forms of marketing such as newspaper ads, flyers, TV ads, mailing lists, pay-per-click ads, power-linking, and many others. How you market your business is up to you. Each technique has its own strengths and weaknesses. Obviously you will want to keep your budget in mind when picking a method of marketing.Diversify your marketing as much as possible, and remember… the more people that see and know your business the more business you will do.Use ToolsThere are numerous of tools which help you from doing competition research to product creation and delivery tracking, use tools to save your time. You have only 24 hours a day, anyway.With the pointers above, you now know how to start a home based business more confidently and chance for your success is now dramatically increase.