India is one of the largest textile exporters in the world. It is also the largest supplier of cotton fabric online. Besides, the Indian textile industry has been the most active worldwide. Therefore, the industry has great potential for manufacturers, retailers, importers, and exporters of all kinds of yarns, fibers, fabrics, to even apparel.
If you wish to start a textile company in India, the time is perfect, more than ever. And this blog will help you begin the process and ensure you are heading in the right direction.
Tips to Start a Textile Business
There are two types of textile businesses – one that sells all sorts of fabrics and the other that trades only a few types or caters to a specific customer niche, like cotton buyers. Therefore, if you are planning to make your name on the top textile companies in India list, you must first decide what you want to sell, manufacture, or supply.
Conduct a Market Research for Product Demand and Supply
You need to gather all kinds of information, statistics, and market trend for your chosen textile product because you need to find the right place to sell your fabrics. Things to consider in your research and analysis include:
- Manufacturing cost and market price.
- Demand and supply of the fabric.
- Existing competition.
- The global value chain of the textile.
Establish a Place to Sell
You can either sell wholesale cotton fabric online in India and abroad via DMI or find a place to sell the manufactured fabrics. Or if you are planning to buy fabrics from the manufacturer, either way, you would need a place for the factory, office, or inventory. An ideal place is one that is within reach of your business associates (buyers and suppliers) and reduces logistics costs.
Gather Funds for Your Business
To start any business, you need capital funds. The operating cost will depend upon the nature of your business. For example, it is huge for textile production businesses because they have to also invest in a weaving machine, knitting machine, cutting machine, buying yarn, inventory, and logistics. However, if you are planning to step into the retail business, the cost will be lower.
Textile Company in India
After arranging the funds for your business, choose the name of your textile business, register it, and apply for mandatory licenses to legalize your business. Trade license, trademark registration, pollution and factory license for manufacturing business, bank account, GSTIN, PAN, and shop establishment licenses are a couple of things you need to secure for your business.
Textile Company in India
Once your business is ready to roll, the next step is to procure raw materials from sellers. You can either arrange a list of suppliers and manufacturers on your own and contact them or connect with DMI Textile Trading Experts and register your business for the best offers, deals, and business opportunities in the domestic and international markets.
However, whichever option you choose, don’t forget to calculate the logistics cost, inventory, product quality, and product cost. Then, go with the supplier that offers the best quality at the best price.
Establish a Business Plan with a Good ROI
We do business for profits, to earn money, so you will have to come up with a plan that helps you earn profits or at the least break even during the first few months. First, calculate the total operational cost, such as electricity, rent, labor, transportation, administration, and legal. Then estimate a selling cost that gives the maximum profit margin. However, make sure to keep the cost lower than your competitors. This is for retail business startups. In the case of textile manufacturing businesses, the total investment cost must be calculated, including raw material, machinery, labor, electricity, infrastructure, and other operational costs.
Market and Advertise Your Product
The advent of technology and digitization has made it important for all textile businesses to market their products both online and offline for better reach and increased ROI. Even manufacturing businesses can showcase their products in the best possible way through DMI. DMI offers an instant platform for manufacturers, retailers, buyers, and sellers to trade their textile products internationally at the best prices hassle-free.
Business Opportunities for Textile Companies in India
DMI offers many opportunities for businesses to grow in the textile industry. From domestic markets to international trading, we can help any startup with an idea to grow into one of the top textile companies in India with great business solutions. Book a free consultation with our trading expert and see the change.
