Introduction Of Silk Industry Commerce Essay

Silk is the queen of all cloths which is historically one of the most of import industries in India. India is the 2nd largest manufacturer of silk, lending to about 18 per centum to the universe production.

Silk production in India

In nature, Asia is the major maker of silk in the universe and produces in surplus of 95 % of the entireness planetary end product. Some of the states which give of import for bring forthing silk are China, India, Japan, Brazil and Korea. India is the taking maker of silk and besides have largest consumer of silk in the universe. India has a well-built tradition and civilization edge place market of silk. In India, mulberry silk is produced chiefly in the provinces of Karnataka, Andhra Pradesh, Tamil Nadu, Jammu & A ; Kashmir and west Bengal. The non-mulberry silks are produced in the province like Jharkhand, Chhattisgarh, Orissa and north-eastern provinces.

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Silk produce in Kanchipuram

The kanchipuram sari holds a particular place among the broad scope of silk saris available in India. Kanchipuram saris are available all around the universe. The production of these silk saris is centred in kanchipuram. The town kanchipuram is all right known as ‘silk metropolis ‘ because traffic circle of its population is reliant upon the silk industry. In the order of 60,000 silk looms work, filled within town. This town has an one-year turnover of more than Rs.200 crores by agencies of the exports consisting about Rs. 3 crores. The export figures are uncomplete due to the insufficiency of weaving on the whole saris, which has its possess demand, but is reasonably lesser over other outfits.

Basic Functioning of the Silk Industry in specific to production

The first silk fibril fabric was made in Ancient China. Silk fibril is a all right, touch, elastic fiber which is produced from caterpillars name called ‘bombyxmori ‘ . After 35 yearss it has hatched from the eggs laid by its parent moth, the caterpillar, usually referred to as silkworm, that silkworm normally spends its clip in eating the foliages of a mulberry tree. Within two or three yearss whirling it surrounds itself in a cocoon which consists of a uninterrupted and really all right fibril of silk. Then silkworm turns into a moth, which escapes by doing a hole through the cocoon. The first cocoons were placed in really hot H2O to soften the gluey gum, sericin, which holds the fibril together. The terminals of the fibril are found and it would be unwound. This patterned advance is called staggering. The silk fibril is put on to big reels which are known as Swifts. Silk is non similar cotton or wool, it is non spun but distorted, so term throwing instead than whirling. Throwing includes the revolving of two sets of spools at different, carefully adjusted, velocities.

Porters FIVE Forces

Determining an industry and specify its rivals and attraction can be determine through porters five forces.

Menaces for new entryway – high

The silk industry ever has possible menace entryway from developing states like China in relation to planetary exports. Through there are tonss of barriers like capital demands and chemical demands. It is hard for the other states to develop the market because of the capital demand and to derive the assurance of the authorities. Since there is a authorities support which consequences in deriving a new entryway for the rivals with cheap labor. That menace for new entryway is comparatively high.

Barriers power of the purchasers – high

The purchaser power is comparatively high in the fabric industry as they drive the industry as such. There is the best use of the resources such that there is a major investing from the purchasers. The purchasers drive the industry due to monetary value propinquity and quality of the merchandise.

Barriers power of the providers – depression

Suppliers for the fabric industry are provided by the chemical industry as they are one of the structural drivers. The provider is comparatively low as comparison to the other industries. The providers are those who supply the natural stuff to the fabric industry for the production of the fabric stuffs. The pricing of the chemical substances which has been supplied to the fabric industry is lifting due to economic recession and rising prices.

Menaces of replacement – high

The replacement ‘s merchandise for silk industry is cotton and wool. Normally the demand for the cotton is really high, because it is the 1 of the cheapest merchandise in textile stuff. Silk cloth is the one of most dearly-won and luxury stuff in fabric industry. Demand for the wool stuff is high during winter seasons. While that clip silk stuff is non that much demand while comparing with cotton.

Competitive competition – high

The competitory competition within the industry is really high and this is justified competition within silk industry manufacturers who supply a big assortment of silk merchandises to incite farther demand in market besides back uping the justification it is clearly noticeable that the merchandise line deepness & A ; breadth of the silk supply is high and portfolio of the merchandise is of a high assortment within the silk industry.

PESTLE ( Macro environmental analysis for the Silk Industry in India )

The construct of PESTEL analysis provides the model of macro-environmental factors to scan the external environment. It the basic tool to understand market growing or diminution. This model evaluates the impact of political, economic, societal, engineering, environment and legal factors on the concern environment. This analysis provides chances or menaces for an organisation in external environment.

Political environment

The political factors in silk fabric industry include trade ordinances, revenue enhancement policies. The silk industry add up major growing as it one of the dining sector in India. The authorities have tonss of subordinate to textile industry as it is the 2nd largest manufacturer of silks. The revenue enhancement freedom has been provided on the exports done from the industry.

Economic environment

The GDP growing for the silk fabric industry in the last two old ages is worsening because of the planetary economic recession, due to this the labour cost as well addition in a gradual gait. This has besides decrease client disbursement capableness. Buying power of the consumer is high, because silk saris shows the prestigiousness position of adult females in India.

Social analysis

The silk industry has usually changes the client ‘s living criterion and besides changes the societal cultural factors in the manner planing industry. Silk is the upper limit consumed in south India which has abundant resources of cloths and natural stuffs. The silk sarees resemble the societal civilization of adult females in India peculiarly in Tamil Nadu.

Technology analysis

India being one of the major exporters of silk, the silk industry in India has gained maximal focal point and attending from the authorities wherein any new technological promotion in production is introduced to this industry adding to the of import to this industry. Recently there are batch of new innovation and technological developments which are taking topographic point in the fabric industry and which will supply the client and the authorities to better the gross well.

Environmental analysis

There are few critical jobs in footings of environment and ecology which are confronting the silk industry ; these include the chemical wastes and emanation from silk bring forthing mills which tend to do nervous upsets. Another issue which late is deriving spotlight attending relates to the break of the ecological system and instability due to the violent death of silk worms and this job was one of the chief driver to bring forth what is called ‘harmless silk ‘ ( i.e. ) silk produced without harming the silk worms.

Legal analysis

The wellness and safety issues are ever see in this type of industry there are commissions in international organisations to take care the benefits of the workers. Compensation for the workers is low in silk industry. There are many times the weavers have work stoppage to raise the wage for them.


In this silk industry there are many structural drivers of alteration. These drivers of alteration can be seen in manner of the people, authorities and buying power of the consumers.

Fashion tendencies of the people

Indian saree are the accustomed vesture of Indian adult females. Manner of the people remains altering, so the fabric industries besides produce the saree harmonizing to the people wants. The silk saris are defendable as that they are easy to transport ; light weighted and assist in free motion. This silk saris are softness and crispness which assure the best quality. The ground for the popularity of the silk saris is suitableness to all occasions. There are many assortments of silk saris like jamdani silk sari, pure silk espousal wear, cultural kanchipuram saris make for strictly traditional wear, the art silk saris, printed silk saris, khadi silk saris and kora silk which are more stylish Indian silk saris.


The silk industry is the 1 of the major sector which developed the Indian economic system and it increase the GDP. There are 2000 set of new fabric policy reforms in fabric sector, which covering with remotion of natural stuff monetary value deformations, cluster attack for power looms, matter-of-fact issue of idle Millss, modernization of out-of-date engineering, etc. The Union Budget of 2005-2006 proclaimed economical progressive policies, which includes:

Decrease in corporate revenue enhancement rate from 35 % to 30 % with 10 % surcharge.

Decrease in depreciation rate on works and machinery from 25 % to 15 % .

Initiation of bunch development for handloom sector.

Availability of wellness insurance bundle to 0.2mn weavers from 0.02mn ab initio.

Buying power of the client

Silk saris make the best among all Indian saris. The monetary value of the Indian saris start from few thousand rupees, a good silk sari can be a batch of rupees. This silk sari shows the prestigiousness position for adult females. Few old ages before rich people can merely purchase the silk saris, while that clip monetary value of the saris is at high. Middle and lower category people can non able to purchase the silk saris. But now a twenty-four hours ‘s buying power of the in-between category is raised. At present the Indian in-between category people is where about 351 million. Buying power of the client has been increased.



The silk industry is the 2nd largest manufacturer and it has an sole airs in India ; it plays an of import function fabric industry and export. It produces 18 % of natural silks in entire universe. The entire production of silk during 2005-06 was 16,500 MT and export were Rs. 2,879.56 crores.

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Silk industry is one of the most of import industries from historical period in India. The sericulture industry employs over 700,000 farm households and is largely concentrated in Southern India. As in today 56 hundred thousand people are dependent on this sericulture industry. The authority of this industry calumny in its extended base, the prolonging market demand pulls peculiarly from the Indian handloom weaving sector.

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The gross from the fabric industry has boosted up the GDP growing in India. The industry magnitude has long-drawn-out from USD 37 billion in 2004-05 to USD 49 billion in 2006-07. In this epoch, the local market witnessed an escalation of USD 7 billion ; this is from USD 23 billion to USD 30 billion. The export market developed from USD 14 billion to USD 19 billion in the same period.

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This is a turning industry which chiefly depends on GDP growing and the rising prices around the Earth. Maturity phase is the phase where the industry can non turn as they have seen a complete merchandise development and reappraisal but the silk industry falls on the turning phase. If the silk industry reaches the adulthood stages so the industry start to worsen.


The Indian silk industry will non see the diminution till the twelvemonth 2020.


As seen the Indian economic system is turning in faster gait than the other developing states there is a considerable growing for the past two old ages. The budget is besides presented in a diversified mode such that the industry grows as the rising prices lessening. The industry falls in between the growing and adulthood phase in the industry life rhythm diagram.


Recycling the silk saris

Chemical wastage

Artificial silk

Scenario-1 – Recycling the silk saris

The old silk saris are recycled into new silk saris and it can be sells in the market at better monetary value. There are some fabrication company which collect damaged and old silk sarees from people and that sarees recycled into new one. This patterned advance saves the industry clip and that saris can be produced with new designs. Even though the saris are recycled the value of the saris did non cut down, so maker can sell the saris in all right monetary value. In this procedure, cost of production is less and it can derive more net income. This procedure is environment friendly, usually dyeing company produce H2O pollution but in this recycling procedure making pollution is really less while comparison to the dyeing company. This procedure is introduce because, people devouring silk saris are more in India they can utilize the silk saris for maximal five old ages so they do n’t utilize that sari, so that old saris can be recycled in this procedure.

Scenario-2 – Chemical wastage

In silk industry, dyeing and completing sector uses the big sum of H2O and extended qualities of compound chemicals. The chemical utilizing in this procedure can be reduced and the saris can be produce with less chemical effects. The dyeing companies are confronting batch of challenge in this procedure. These companies are the chief ground for the H2O pollution. The chemical wastage which produces in the dyeing companies is mix with the river H2O and creates H2O pollution for the environment. The dyeing companies should hold the proper mercantile establishment for the waste H2O. So the chemical use can be cut down in the production of silk saris and that dyeing companies should hold the proper mercantile establishment for that chemical wastage and that chemical wastage should non blend with the river H2O. This procedure saves our environment.

Scenario-3- Artificial silk

Now a twenty-four hours ‘s silk is cultivated in Japan, China, Spain, France and Italy are replaced to unreal fibres that has been used of silk in much of the fabric industry. The silk industry has a concern worth of $ 200- $ 500 million yearly. A little piece of silk cloth is produced by killing 1000s of silkworms. Some of the industries in India are seeking to bring forth silk fabric without killing of silkworms. ‘Ahimsa silk ‘ saris which is produced in Hyderabad, India is without killing silkworms. At the present clip people do n’t wish the saris which is produced by killing silkworms, they are prefer for this ahimsa silk. These ahimsa silk saris are eco-friendly. In future silk saris can be produced without killing silkworm.


Get downing from above scenarios 3rd and 2nd can be suggested, because the 3rd scenario tells about the bring forthing of silk fabrics without killing silkworm so coevals of the silkworm is besides salvaging through this method. Scenario 2 which Tells sing the reduction of chemical wastage in dyeing industry, this procedure will salvage the environment pollutions.


In India silk industry is a first participant in the planetary scenario and the growing prognosis for the industry appear to be optimistic. Method like the support of extra technological and economic research in the different facets of sericulture, regularity and quality control of silk and silk merchandises and account of selling and stabilisation of monetary values of silk cocoons and natural silk it might increase rapidly than yet before.


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