DTM’s major competitors, at present, are small scale manufacturers from unorganized power loom sector. They primarily do job work for various garment manufacturers. They do not have modern technology and strict quality standards. Their competitive strengths are- 

  1. Proximity to markets – They are located near New Delhi, Mumbai, Bangalore and the big cities where the garment manufacturers and buyers are situated. Thus, they offer huge savings in terms of to and fro transportation cost and the lead time to the garment manufacturers. In addition, the buyers are able to monitor the quality of these manufacturers by supervising the production facilities themselves frequently.
  2. Low price due to extremely low overheads – The small scale manufacturers neither pay various taxes (in the past Government’s duty structure was very favorable to them in contrast to modern processing houses like DTM); nor follow the stringent labor laws. With minimum overheads, they are able to offer low prices in the extremely price sensitive job-work market.
Competitors from Organized Sector
There are a many large companies in the organized sector. They are far superior in terms of production capacities and market share than DTM. These include Arvind Mills, Alok Textile, Ashima Textile, Bharat Vijay Mills, Nahar Textile, Auro Textile (Vardhaman group), Sai Laxmi textile, Premier textile Mills, JCT Mills etc. These companies have large scale integrated production facilities and strict quality norms and they cannot be correctly categorized as DTM's real competitors at this stage, because their market specialization, financial strength and production facilities are entirely different from that of DTM. For e.g.:
  1. Arvind Mills specializes in DENIM, where they have tie up with international brands such as Lee and Wranglers. DTM does not produce Denim.
  2. Arvind Mills has its own domestic garment brands such as Flying Machine, Newport, Excalibur and Ruf & Tuf, while DTM does not have any own garment brand, it supplies to garment manufacturers.
  3. Alok Textile’ focus is on wide width fabric for home furnishing applications, whereas DTM does not have facilities to process such wide width fabric.
  4. Nahar and Vardhman groups’ main focus is knitted fabric, while DTM’s forte is heavy weight fabric for bottom wear, light weight fabric for top wear, and flannel. It does not produce knitted fabric.