Demand conditions

Textile industry is one of the main branches of economy in many countries and in Kazakhstan it has an important role. A source of raw materials of textile industry is cotton which is mainly associated with Southern Kazakhstan region. This region became essential for textile production already in Soviet Union. Kazakhstan produced about 85000 tons of cotton after independence, following 150000 tons in 2004 and 379000 tons in 2012.

Kazakhstan mainly benefits from such sectors as oil and gas, only 140000 ha annually are allocated to cotton cultivation. However, according to Kazakhstan Agency of statistics, in 2012 the production of textile industry comprised $ 291,7 million. The main source of such number is a production of cotton yarn, outerwear, knitted fabric, sweaters, and related products.

Textile and sewing industry of Kazakhstan satisfies only 10% of domestic demand, while for economic safety this percentage should be higher. The population of Kazakhstan mainly acquires goods produced in China, Russia, Turkey, Kyrgyzstan and others.

More than a half of textile goods, produced in Kazakhstan, are exported to other countries. These countries are shown at the graph below.

Looking particular at exported clothes, more than 73% of goods go to Russia, about 9% to France and about 4% to Ukraine and Kyrgyzstan each.

Summarizing the demand for textile in Kazakhstan, it should be said that this industry is not much developed in Kazakhstan, but according to strategy “Kazakhstan-2050”, big efforts will be put to develop it and increase demand of population towards native goods and increase exports. Also it should be admitted that Kazakhstan`s cost of production is relatively low and it leads to significant demand on the world market.

Firm strategy, structure and rivalry

#	Name	Activity
1	«PRODUCTIONAL-COMMERCIALFIRM "KAZAKHSTANTEXTLINE» LLP	Production of finished textile
2	«BIYK» PC	Production of underwear
3	«TARAZKOZHOBUV» LLP	Dressing and painting of fur
4	«TEMIRTAU ASSOCIATES AND ANCILLARIES» LLP	Production of outerwear
5	«BOLSHEVICHKA» PC	Production of work clothing
6	«ZHANARYS» LLP	Production of work clothing
7	COTTON PROCESSING PLANT "MYRZAKENT» LLP	Production of silk-and-cotton fiber
8	«COTTON CONTRACT CORPORATION» JSC	Production of silk-and-cotton fiber
9	«JEAN-TEX COMPANY» LLP	Production of silk-and-cotton fiber
10	«COTTON PROCESSING PLANT «AISHA-BIBI» LLP	Production of silk-and-cotton fiber
11	«UGAGROEX» LLP	Production of silk-and-cotton fiber
12	«AK-ALTYN CORPORATION» LLP	Production of silk-and-cotton fiber
13	«BAGARA-MAKTA» LLP	Production of silk-and-cotton fiber
14	«KHANSUAR INVEST COMPANY» LLP	Production of silk-and-cotton fiber

In the table above you can see the largest companies of the textile sector in Kazakhstan according to the business register ASRK.

In 2012 number of Kazakhstan textile companies was 495, out of which 414 are small-sized companies, 62 are medium-sized companies and 19 – large ones. The production of these companies is comprised of clothes (54%), textile (31%), footwear and leather production (9%) and leather and fur clothes (6%).

The most textile companies are private, so the competition among them exists.

The Kazakhstan textile industry has high potential for future development due to its lower expenses of production, proximity of raw materials, future potential sales, attractive investment environment and developed transport infrastructure.

Created cotton cluster in the Southern Kazakhstan has good opportunities for successful completion in regional and international markets.