# Textiles and leather: Value chain, from upstream to the customer Spinning, weaving and processing fibres into yarn and fabric, and hides into leather Source page: https://www.materialinsights.org/industries/textiles/value-chain/ #### 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 supplyCotton growers and ginners**3 · Important Farmers grow seed cotton and ginners separate lint from seed, press it into bales and sell it to spinning mills and traders.^[2](https://static.pib.gov.in/WriteReadData/specificdocs/documents/2025/apr/doc202541530401.pdf) **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 Cotton](https://www.materialinsights.org/commodities/cotton/)[H₂O Water](https://www.materialinsights.org/commodities/water/)[N Nitrogen (ammonia)](https://www.materialinsights.org/commodities/nitrogen/)[K Potash](https://www.materialinsights.org/commodities/potash/) Chemicals [Ins Insecticides](https://www.materialinsights.org/chemicals/insecticides/)[Gly Herbicides](https://www.materialinsights.org/chemicals/herbicides/) Energy [Agr Energy in farming](https://www.materialinsights.org/energy/e_agri_energy/) Industries [Water and sanitation](https://www.materialinsights.org/industries/water_sanitation/)**Examples:** Cotton Corporation of India, Olam Agri, Louis Dreyfus Company **Polyester and nylon fibre producers**4 · Critical Polymerise PTA and MEG (or caprolactam for nylon) and melt-spin filament and staple fibre for spinners, weavers and knitters.^[1](https://textileexchange.org/knowledge-center/reports/materials-market-report-2025/) **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](https://www.materialinsights.org/commodities/water/) Chemicals [PTA Purified terephthalic acid](https://www.materialinsights.org/chemicals/pta/)[MEG Monoethylene glycol](https://www.materialinsights.org/chemicals/meg/)[PET PET resin](https://www.materialinsights.org/chemicals/pet/)[CPL Caprolactam](https://www.materialinsights.org/chemicals/caprolactam/)[Add Polymer additives](https://www.materialinsights.org/chemicals/polymer_additives/) Energy [Oil Crude oil](https://www.materialinsights.org/energy/crude_oil/)[Gas Natural gas](https://www.materialinsights.org/energy/natural_gas/)[CHP Combined heat and power](https://www.materialinsights.org/energy/e_chp/)**Examples:** Reliance Industries, Tongkun Group, Hengli Group, Indorama Ventures **Viscose and other man-made cellulosic fibre makers**3 · Important Dissolve 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 Timber](https://www.materialinsights.org/commodities/lumber/)[S Sulfur](https://www.materialinsights.org/commodities/sulfur/)[H₂O Water](https://www.materialinsights.org/commodities/water/) Chemicals [NaOH Caustic soda](https://www.materialinsights.org/chemicals/caustic_soda/)[H2SO4 Sulphuric acid](https://www.materialinsights.org/chemicals/sulphuric_acid/)[VSF Viscose fibre](https://www.materialinsights.org/chemicals/viscose/) Energy [Tc Thermal coal](https://www.materialinsights.org/energy/thermal_coal/)[CHP Combined heat and power](https://www.materialinsights.org/energy/e_chp/) Industries [Wood products](https://www.materialinsights.org/industries/wood_products/)**Examples:** Grasim (Birla Cellulose), Lenzing, Sateri, Tangshan Sanyou Stage 2 **SpinningYarn spinning mills**2 · Supporting Open, 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 Cotton](https://www.materialinsights.org/commodities/cotton/)[H₂O Water](https://www.materialinsights.org/commodities/water/) Chemicals [PSF Polyester fibre](https://www.materialinsights.org/chemicals/polyester_fibre/)[VSF Viscose fibre](https://www.materialinsights.org/chemicals/viscose/) Energy [Dist Distribution grids, mini-grids and interconnectors](https://www.materialinsights.org/energy/e_distribution/)[Mot Electric motors and drives](https://www.materialinsights.org/energy/e_motors/)[PV Solar photovoltaics](https://www.materialinsights.org/energy/e_pv/) Industries [Machinery and equipment](https://www.materialinsights.org/industries/machinery/)**Examples:** Vardhman Textiles, KPR Mill, Nitin Spinners, Weiqiao Textile **Textile machinery makers**3 · Important Build 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 Steel](https://www.materialinsights.org/commodities/steel/)[Al Aluminium](https://www.materialinsights.org/commodities/aluminum/)[Cu Copper](https://www.materialinsights.org/commodities/copper/) Industries [Machinery and equipment](https://www.materialinsights.org/industries/machinery/)[Metal products](https://www.materialinsights.org/industries/metal_products/)**Examples:** Rieter, Trützschler, Toyota Industries, Lakshmi Machine Works, Picanol Stage 3 **Fabric formationWeaving and knitting mills (including powerloom clusters)**2 · Supporting Weave 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](https://www.materialinsights.org/commodities/cotton/) Chemicals [PSF Polyester fibre](https://www.materialinsights.org/chemicals/polyester_fibre/)[PA Nylon (PA6, PA66)](https://www.materialinsights.org/chemicals/nylon/)[Str Starch and cellulose derivatives](https://www.materialinsights.org/chemicals/starch_derivatives/)[VSF Viscose fibre](https://www.materialinsights.org/chemicals/viscose/) Energy [Dist Distribution grids, mini-grids and interconnectors](https://www.materialinsights.org/energy/e_distribution/)[Mot Electric motors and drives](https://www.materialinsights.org/energy/e_motors/) Industries [Machinery and equipment](https://www.materialinsights.org/industries/machinery/)**Examples:** Arvind, Raymond, Welspun Living, Texhong **Nonwoven and technical textile makers**3 · Important Make 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 Polypropylene](https://www.materialinsights.org/chemicals/polypropylene/)[PSF Polyester fibre](https://www.materialinsights.org/chemicals/polyester_fibre/)[PA Nylon (PA6, PA66)](https://www.materialinsights.org/chemicals/nylon/)[VSF Viscose fibre](https://www.materialinsights.org/chemicals/viscose/)[Adh Adhesives and sealants](https://www.materialinsights.org/chemicals/adhesives/)[FR Flame retardants](https://www.materialinsights.org/chemicals/flame_retardants/) Energy [Dist Distribution grids, mini-grids and interconnectors](https://www.materialinsights.org/energy/e_distribution/)[Gas Natural gas](https://www.materialinsights.org/energy/natural_gas/) Industries [Plastic and rubber products](https://www.materialinsights.org/industries/plastic_rubber/)**Examples:** Freudenberg, Ahlstrom, SRF, Toray Stage 4 **Wet processingDye and textile auxiliary suppliers**3 · Important Make 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 Benzene](https://www.materialinsights.org/chemicals/benzene/)[HNO3 Nitric acid](https://www.materialinsights.org/chemicals/nitric_acid/)[H2SO4 Sulphuric acid](https://www.materialinsights.org/chemicals/sulphuric_acid/)[Dye Dyes](https://www.materialinsights.org/chemicals/dyes/)[Srf Surfactants](https://www.materialinsights.org/chemicals/surfactants/) Energy [Gas Natural gas](https://www.materialinsights.org/energy/natural_gas/)**Examples:** Archroma, DyStar, Huntsman Textile Effects, Atul **Dyeing, printing and finishing houses**3 · Important Scour, 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 Water](https://www.materialinsights.org/commodities/water/)[NaCl Salt](https://www.materialinsights.org/commodities/salt/)[Sda Soda ash](https://www.materialinsights.org/commodities/soda_ash/) Chemicals [Dye Dyes](https://www.materialinsights.org/chemicals/dyes/)[NaOH Caustic soda](https://www.materialinsights.org/chemicals/caustic_soda/)[H2O2 Hydrogen peroxide](https://www.materialinsights.org/chemicals/hydrogen_peroxide/)[AcOH Acetic acid](https://www.materialinsights.org/chemicals/acetic_acid/)[Srf Surfactants](https://www.materialinsights.org/chemicals/surfactants/)[WT Water treatment chemicals](https://www.materialinsights.org/chemicals/water_treatment/) Energy [Blr Boilers, furnaces and stoves](https://www.materialinsights.org/energy/e_combustion_heat/)[Tc Thermal coal](https://www.materialinsights.org/energy/thermal_coal/)[WHU Waste heat for drying, water and food](https://www.materialinsights.org/energy/e_waste_heat_uses/) Industries [Water and sanitation](https://www.materialinsights.org/industries/water_sanitation/)**Examples:** Arvind, Alok Industries, Vardhman Textiles, Bombay Dyeing Stage 5 **LeatherTanneries and leather finishers**3 · Important Buy raw hides and skins, tan them into wet-blue or finished leather and sell to footwear, garment, bag and upholstery makers.^[4](https://leatherindia.org/wp-content/uploads/2026/04/INDIAN-LEATHER-INDUSTRY.pdf) **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 Beef](https://www.materialinsights.org/commodities/beef/)[Cr Chromium](https://www.materialinsights.org/commodities/chromium/)[NaCl Salt](https://www.materialinsights.org/commodities/salt/)[CaO Lime](https://www.materialinsights.org/commodities/lime/)[H₂O Water](https://www.materialinsights.org/commodities/water/) Chemicals [H2SO4 Sulphuric acid](https://www.materialinsights.org/chemicals/sulphuric_acid/)[Dye Dyes](https://www.materialinsights.org/chemicals/dyes/)[FA Fatty acids](https://www.materialinsights.org/chemicals/fatty_acids/)[WT Water treatment chemicals](https://www.materialinsights.org/chemicals/water_treatment/) Energy [Dist Distribution grids, mini-grids and interconnectors](https://www.materialinsights.org/energy/e_distribution/)[Blr Boilers, furnaces and stoves](https://www.materialinsights.org/energy/e_combustion_heat/) Industries [Water and sanitation](https://www.materialinsights.org/industries/water_sanitation/)**Examples:** Tata International, Farida Group, Pittards, JBS Couros Stage 6 **Made-ups, compliance and exportHome and made-up textile manufacturers**2 · Supporting Cut 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](https://www.materialinsights.org/commodities/cotton/) Chemicals [PSF Polyester fibre](https://www.materialinsights.org/chemicals/polyester_fibre/) Energy [Dist Distribution grids, mini-grids and interconnectors](https://www.materialinsights.org/energy/e_distribution/)[Shp Ship propulsion](https://www.materialinsights.org/energy/e_marine/) Industries [Paper and packaging](https://www.materialinsights.org/industries/paper_packaging/)[Transport and logistics](https://www.materialinsights.org/industries/transport_logistics/)**Examples:** Welspun Living, Trident, Indo Count, Himatsingka Seide **Certification and testing bodies**2 · Supporting Test 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 services](https://www.materialinsights.org/industries/software_it/)**Examples:** OEKO-TEX, Textile Exchange, SGS, Intertek, Leather Working Group ## Other sections - [Overview](https://www.materialinsights.org/industries/textiles/index.md) - [Where ₹100 goes](https://www.materialinsights.org/industries/textiles/cost-mix/index.md) - [Price links with suppliers](https://www.materialinsights.org/industries/textiles/price-links/index.md) - [Example story](https://www.materialinsights.org/industries/textiles/story/index.md) - [Linked industries](https://www.materialinsights.org/industries/textiles/linked-industries/index.md) - [Materials drawn on](https://www.materialinsights.org/industries/textiles/materials/index.md) - [Chokepoints and risks](https://www.materialinsights.org/industries/textiles/risks/index.md) - [Sources](https://www.materialinsights.org/industries/textiles/sources/index.md)