Value chain analysis: ready made garment industry

Abstract

Every end product/service is an outcome of effort from various players at different stages of its life cycle. The value added by each player is important to get the product in the required form and state to the end consumer. But the value added by each of them can vary from minimum to immense . This value addition should ideally be directly proportional to the profit that the player makes from the product. But this is not usually the case. The industry under study is the Ready Made Garment industry. This industry has seen a significant change and development in the past few years. This change is mainly attributed to the growing demand for fashionable garments in the country. Over the past year, the garment industry has been building up on its capacities at various levels, expanding its product base, incorporating innovative technology, and engineering newer avenues of business. This sector, being one of the largest industrial sectors of the country, is a major propellant of the economy s growth. The project aims to understand the value chain that a typical product in RMG industry goes through and to understand the profits made by each player in today s world and see if there is a relationship between the two. As derived from the data that which was available, of the main players involved in the development and selling of a RMG good in Bangalore, the brands which give their name tag to the product is the one which makes the maximum profit. This justifies the amount of money companies spend in building their brand image. The least profits are made by the raw material manufactures.