Textiles and leather: Value chain, from upstream to the customer
Spinning, weaving and processing fibres into yarn and fabric, and hides into leather
Value chain, from upstream to the customer
Criticality to the chain: 5 · Chokepoint 4 · Critical 3 · Important 2 · Supporting 1 · Commodity service Stage 1 Fibre and hide supplyFarmers grow seed cotton and ginners separate lint from seed, press it into bales and sell it to spinning mills and traders.2
Why important: Millions of farms across India, China, the US, Brazil and Pakistan supply cotton, but weather and pests swing output and quality sharply from year to year; India is the second-largest producer with about 24% of world output (Ministry of Textiles). Technologies Bt and hybrid cotton seed Drip irrigation Roller and saw gins Bale-level traceability and contamination control Depends on Commodities Ct CottonH₂O WaterN Nitrogen (ammonia)K Potash Chemicals Ins InsecticidesGly Herbicides Energy Agr Energy in farming Industries Water and sanitationExamples: Cotton Corporation of India, Olam Agri, Louis Dreyfus CompanyPolymerise PTA and MEG (or caprolactam for nylon) and melt-spin filament and staple fibre for spinners, weavers and knitters.1
Why critical: Polyester is 59% of world fibre and 88% of it is made from fossil feedstock (Textile Exchange), and it comes from large integrated PTA-to-fibre complexes that take years to build, so other fibres cannot quickly fill a shortfall. Technologies Continuous PTA-MEG polymerisation Melt spinning (POY, FDY, staple) Draw texturising Bottle-to-fibre recycling Depends on Commodities H₂O Water Chemicals PTA Purified terephthalic acidMEG Monoethylene glycolPET PET resinCPL CaprolactamAdd Polymer additives Energy Oil Crude oilGas Natural gasCHP Combined heat and powerExamples: Reliance Industries, Tongkun Group, Hengli Group, Indorama VenturesDissolve wood pulp and regenerate it as viscose, modal and lyocell staple and filament for blends with cotton and polyester.
Why important: A handful of groups in India, China, Indonesia and Austria make most viscose and lyocell, and new lines need dissolving pulp and chemical recovery that take years to build, but cotton and polyester can replace it in many blends. Technologies Viscose process with carbon disulphide recovery Lyocell solvent spinning Closed-loop chemical recovery Certified wood sourcing Depends on Commodities Tm TimberS SulfurH₂O Water Chemicals NaOH Caustic sodaH2SO4 Sulphuric acidVSF Viscose fibre Energy Tc Thermal coalCHP Combined heat and power Industries Wood productsExamples: Grasim (Birla Cellulose), Lenzing, Sateri, Tangshan SanyouOpen, card, comb and spin fibre into cotton, synthetic and blended yarns sold to weavers, knitters and home-textile makers.
Why supporting: Thousands of mills in India, China, Vietnam, Pakistan and Bangladesh compete, so buyers can switch yarn suppliers within weeks. Technologies Ring and compact spinning Rotor (open-end) and air-jet spinning Automated blow rooms and auto-coners Yarn quality monitoring Depends on Commodities Ct CottonH₂O Water Chemicals PSF Polyester fibreVSF Viscose fibre Energy Dist Distribution grids, mini-grids and interconnectorsMot Electric motors and drivesPV Solar photovoltaics Industries Machinery and equipmentExamples: Vardhman Textiles, KPR Mill, Nitin Spinners, Weiqiao TextileBuild spinning frames, looms, knitting and dyeing machines and sell them to mills with spares and service.
Why important: Premium spinning and weaving machines come from a few Swiss, German, Belgian and Japanese firms, but Chinese and Indian makers such as LMW offer alternatives; large orders still take many months to deliver. Technologies Compact and air-jet spinning systems Air-jet and rapier looms Electronic jacquards Low-liquor dyeing machines Depends on Commodities St SteelAl AluminiumCu Copper Industries Machinery and equipmentMetal productsExamples: Rieter, Trützschler, Toyota Industries, Lakshmi Machine Works, PicanolWeave or knit yarn into woven, denim and knitted fabric for garment makers, home-textile makers and traders.
Why supporting: Large integrated mills and very many small powerloom units in Surat, Bhiwandi and Tiruppur mean fabric can be resourced in weeks for standard qualities. Technologies Air-jet and rapier weaving Circular and warp knitting Warp sizing CAD design and jacquard control Depends on Commodities Ct Cotton Chemicals PSF Polyester fibrePA Nylon (PA6, PA66)Str Starch and cellulose derivativesVSF Viscose fibre Energy Dist Distribution grids, mini-grids and interconnectorsMot Electric motors and drives Industries Machinery and equipmentExamples: Arvind, Raymond, Welspun Living, TexhongMake spunbond, meltblown, needle-punched and coated fabrics for hygiene, medical, filtration, geotextile and automotive uses.
Why important: Lines cost tens of millions of dollars and hygiene and medical grades need qualification, so switching supplier takes months. Technologies Spunbond and meltblown lines Needle punching and hydroentangling Coating and lamination Fire-retardant finishing Depends on Chemicals PP PolypropylenePSF Polyester fibrePA Nylon (PA6, PA66)VSF Viscose fibreAdh Adhesives and sealantsFR Flame retardants Energy Dist Distribution grids, mini-grids and interconnectorsGas Natural gas Industries Plastic and rubber productsExamples: Freudenberg, Ahlstrom, SRF, TorayMake reactive, disperse and vat dyes, pigments and wetting, softening and finishing auxiliaries for dyehouses.
Why important: Several Indian, Chinese and European suppliers compete, but colour matching and brand restricted-substance lists make switching slow. Technologies Azo and anthraquinone dye synthesis Low-salt reactive dyes Eco-certified auxiliaries Digital-print inks Depends on Chemicals Bz BenzeneHNO3 Nitric acidH2SO4 Sulphuric acidDye DyesSrf Surfactants Energy Gas Natural gasExamples: Archroma, DyStar, Huntsman Textile Effects, AtulScour, bleach, dye, print and finish yarn and fabric to the colour and hand that brands specify.
Why important: Processing is the most water- and heat-hungry step and effluent permits are scarce, so capable houses are hard to add quickly. Technologies Jet and soft-flow dyeing Continuous pad-steam ranges Digital and rotary printing Zero-liquid-discharge effluent plants Depends on Commodities H₂O WaterNaCl SaltSda Soda ash Chemicals Dye DyesNaOH Caustic sodaH2O2 Hydrogen peroxideAcOH Acetic acidSrf SurfactantsWT Water treatment chemicals Energy Blr Boilers, furnaces and stovesTc Thermal coalWHU Waste heat for drying, water and food Industries Water and sanitationExamples: Arvind, Alok Industries, Vardhman Textiles, Bombay DyeingBuy raw hides and skins, tan them into wet-blue or finished leather and sell to footwear, garment, bag and upholstery makers.4
Why important: India makes about 13% of the world's leather in clusters such as Vellore-Ambur, Chennai and Kanpur, but effluent rules cap capacity growth (CLE). Technologies Chrome tanning Vegetable and chrome-free tanning Common effluent treatment and chrome recovery Leather Working Group audits Depends on Commodities Bf BeefCr ChromiumNaCl SaltCaO LimeH₂O Water Chemicals H2SO4 Sulphuric acidDye DyesFA Fatty acidsWT Water treatment chemicals Energy Dist Distribution grids, mini-grids and interconnectorsBlr Boilers, furnaces and stoves Industries Water and sanitationExamples: Tata International, Farida Group, Pittards, JBS CourosCut and sew towels, bed sheets, rugs and curtains and sell them under retailer or own brands, largely to the US and Europe.
Why supporting: Many Indian, Pakistani, Chinese and Turkish makers compete for retailer programmes, which are re-tendered season by season. Technologies Terry and sheeting looms Automated cut-and-sew lines Fibre traceability tagging Retail EDI and replenishment Depends on Commodities Ct Cotton Chemicals PSF Polyester fibre Energy Dist Distribution grids, mini-grids and interconnectorsShp Ship propulsion Industries Paper and packagingTransport and logisticsExamples: Welspun Living, Trident, Indo Count, Himatsingka SeideTest and certify fibre origin, chemical safety and social compliance so that mills can sell to global brands.
Why supporting: Several global labs and standard owners compete, though brands insist on named schemes such as OEKO-TEX and GOTS. Technologies Restricted-substance testing Organic and recycled content standards Chain-of-custody traceability Social audits Depends on Industries Software and IT servicesExamples: OEKO-TEX, Textile Exchange, SGS, Intertek, Leather Working Group