Indian Textile Industry

[Kewl Batty]

Indian Textile Industry is the second largest in the world next only to China's. It is also the second largest employment generator after agriculture. Being one of the earliest industries to come into being in India, it accounts for 30% of the total exports.
The following are the segments in Indian Textile Industry.

• Readymade Garments
• Cotton Textiles including Handlooms
• Man-made Textiles
• Silk Textiles
• Woollen Textiles
• Handicrafts
• Coir
• Jute

[Kewl Batty]

Maran wants textile industry to diversify into new products

To encourage foreign investments to bolster domestic manufacturing.

Source

New Delhi, June 25 The age-old Indian textile industry, hobbled by different lobbies from within “trying to monopolise the situation and capitalise”, should better brace up for change to “wake up and think differently” to be competitive in products, price and quality. This is what the new Union Minister for Textiles, Mr. Daynanidhi Maran, gives as his inaugural message to the indigenous textile industry.

Terming the current export dip and flat domestic consumption plaguing the industry as a temporary atrophy to be surmounted by policy support and “facilitator” role from the Government, Mr Maran, sitting in his refurbished swanky room in Udyog Bhavan, told Business Line here said that this “legacy industry” has a rosy future. Provided, if it changes itself with the changing times and tastes of a big domestic market and lucrative export destinations and diversified textile products, particularly in new markets such as Japan and Australia.

Following are the excerpts from the interaction with Mr Maran:

On export growth: July to September are crucial months for Christmas orders and the third quarter will determine the future steps the Government has to take. The Textile Ministry has put up its demands to the Finance Ministry and the latter is also particular that the benefits enjoyed by the export industry should be restored to them. Fortunately or unfortunately, even if this segment gets all the incentives it wants, will it survive without diversification to new markets as the existing major ones like Europe and the US having been still not yet out of the demand dip? Sometimes it is better to put your eggs in various baskets.

Just in the IT industry when I was a Minister I invited foreign investors to come to India, manufacture here and sell in the domestic market, I will do the same in the Textile Ministry after the Budget by seeking foreign investments to bolster domestic manufacturing and sale in the domestic market besides exports to third countries through conscious efforts at brand-building.

On flexible labour policy: Whether it is flexible labour laws or contract labour laws as sought by the domestic garment industry, all that we want to make sure is that the industry does not exploit labour. We have to make sure of safeguards so that they do not use labour only for three months and dump them. People are more important. It is in the Constitution that as we evolve, as we progress, certain laws have to be changed to suit the changing times of India, without compromising the rights of the workers. We are talking with labour unions to provide safeguard measures which will protect both the sides.

On Chinese competition: China has a flexible fibre policy. Here cotton manufactures want cotton to be exported, yarn manufacturers want yarn to be exported, while garment manufacturers want neither to be exported but only garments and not any import substitution. When Hindustan Motors was dominant, only ambassadors and Fiats were plying but once the automobile sector was opened up, the consumer has baffling variety to choose from.

Our industry wants only financial package of Chinese size but turning a blind eye to what the Chinese industry has done. The domestic industry must get out of the groove. China is a manufacturer of Lycra, a synthetic fibre popular for its exceptional elasticity, whereas Indian industry is not. Because China manufactures this high-cost and high-return Lycra, it is able to compete in the global production of sanitary pads and diapers while Indian textile industry is not into these lucrative demand segments. It should also get into medical textiles and disposables to stay competitive and robust.

On National Fibre Policy: In India, the cotton cloth is cheaper but man-made cloth is expensive, whereas the world over the trend is the opposite. If you want to compete in the international arena, where is China and where are we? Are we manufacturing Lycra? We have to import from China while everywhere it is Lycra. Because, you (the industry) don’t do anything. Is it not time we also get aggressive on this front?

[Kewl Batty]

KSTC in recast mode; revival scheme for mills

Source

Thiruvananthapuram, June 29

The Kerala State Textile Corporation (KSTC) has embarked on a revival scheme for the textile mills under its fold at a total outlay of Rs 24.10 crore.

The exercise has been set in motion in the light of the poor performance of the textiles sector among the public sector enterprises, even as the other sectors have shown significant improvement in terms of profitability over the last few years.

The scheme covers modernisation of Kottayam Textiles (Rs 3.56 crore), Prabhuram Mills (Rs 4.47 crore) and Edarikode Textiles (Rs 2.38 crore) and total revival of Malabar Spinning and Weaving Mills (Rs 13.69 crore).

The required funds are being raised through an equity contribution of Rs 10.29 crore from the Government and term loans of Rs 11.82 crore from banks. An amount of Rs 1.98 crore is slated to come from sale of old building and machinery.

Mr M. Ganesh, Managing Director, KSTC, told Business Line that the combined capacity utilisation of the mills was only 70 per cent, while the industry benchmark was in the range of 90-95 per cent. A major reason for the low capacity utilisation is the old spindles, which will be replaced with modern machinery.

Similarly, the revival scheme for Malabar Spinning and Weaving Mills envisages capacity addition with the number of spindles going up from the existing 6,000 to 10,500. The revival of the mills is expected to be completed by September this year.
Cotton scarcity

Another major problem being faced by the mills is non-availability of good quality cotton, which is procured from outside the State, and at competitive prices. Cotton, the raw material, accounts for as much as 55 per cent of the value of production.

To overcome the situation, the Government is planning to set up a ‘cotton bank’, which will be accessible to not only the KSTC mills but the entire textiles industry in the State. Apart from assistance from the Government, the Kerala Financial Corporation will extend soft loans for funding the bank, which will operate through ‘escrow account’ mechanism.

[Kewl Batty]

Maran to lead team for Tokyo textile fair

‘Some good news in Budget’: The Union Textiles Minister, Mr Dayanidhi Maran, at a function organised by textile associations in Tirupur on Tuesday.–

Source

Tirupur, June 30 The Textiles Ministry is preparing to help exporters gain access to new markets .

It is in this context that the Ministry, along with the Apparel Export Promotion Council, is planning to take a delegation of exporters to Japan to attend the International Trade Fair in Tokyo.

The Union Minister for Textiles, Mr Dayanidhi Maran, is to lead the team which is scheduled to leave on July 20.

The textile community in India is said to have booked 50 out of the 350-odd stalls.

Mr Maran told reporters that the participants would display India-made garments and take part in a fashion showduring the three-day event.

“The Ministry will look East, explore new markets such as Japan, Australia, Cambodia, South Africa, Turkey, Brazil and Russia. Japan appears to be a favourable destination as the Japanese prefer the ‘Made in India’ tag to ‘Made in China’. We must exploit the potential,” he reiterated.

Reverting to brand promotion, Mr Maran said the Ministry would strive to promote the India Brand, not only in the markets abroad, but also within the country. ‘We should look to promote the India brand here. Our domestic consumption is huge,’ he added.

While hinting at about the 10 per cent drop in exports of textiles, Mr Maran pointed out that the domestic consumption had stagnated.

To a query on the National Fibre policy, he said ‘the process has just started. The policy can be expected to be in place before the close of this year.’

Mr Maran said “I have placed your wish list with the Finance Minister. Don’t expect too much, but you can expect some good news”.

[Kewl Batty]

Diversify markets, make India a textile hub: Maran
30 Jun 2009, 2028 hrs IST, ET Bureau

Source

TIRUPUR: The textile ministry is keen to make India a destination for textile products. "People visiting India should look at it as a market for
buying textile goods," said Union textile minister Dayanidhi Maran here on Tuesday.

Speaking to reporters after addressing exporters in the knitwear town, Mr Maran said Indian textile products should be aggressively marketed under the ‘Made in India’ brand.

The country should look ‘east’ and not wholly depend on US and Europe markets for knitwear exports, he said. Noting that textile exports have dropped due to global recession, he said exporters should look at markets like Japan, Cambodia, Australia, South Africa, Brazil, Russia and Turkey to promote the Indian products.

Highlighting the potential of Indian textiles beyond the traditional markets, he cited the instance of the Japanese preferring Indian brands over those made in China.

To initiate the process of tapping newer markets, Mr Maran is leading a delegation of textile exporters to Japan to take part in an International fair and a buyer-seller meet from July 20 -24.

"The fair has attracted 250 exhibitors from all over the world and nearly 50 Indian exporters are going to exhibit their products there. Among the 50 exhibitors, 44 are from the apparel sector," added Tirupur Exporters Association president Sakthivel.
In addition to new markets, Mr Maran asked textile manufacturers to look inward and cater to the growing domestic market. "Despite global meltdown, India survived because of its domestic consumption," he said.

In the textile industry, 70% of consumption is from the domestic market. Therefore, garment producers should look at promoting quality goods within India too, the textile minister added.

On the need for infrastructure development in Tirupur, Mr Maran said, as an MP, he would raise the need for implementing marine discharge project as well as other development schemes.

Earlier, Mr Sakthivel requested the minister to support the Knitwear Technology Mission, essential for the growth of the industry in Tirupur. "Since we mainly produce cotton-based products for Western markets, we need technology support to produce other synthetic-based products too," he said.

[Kewl Batty]

Looks like the Era of Textile Industry in India is beginning!

[natarajan1986]

Lets hope that he makes tirupur a major city

[Euromast]

Rs 3,000-crore package for textiles industry

NEW DELHI: The government has offered a helping hand to the country's ailing textile sector by announcing a Rs 3,000-crore ($627 million) financial
package to waive loan overdues of handloom cooperatives and make available loans at concessional rates for the industry.

"The government has formulated a financial package of Rs 3,000 crore for waiver of the overdues of loans of the handloom cooperatives of the country and also, to provide loans at concessional rates of 7 per cent per annum," Minister of State for Textiles Panabaka Lakshmi has said.

The proposal has been sent to the finance ministry for approval.

[Arul Murugan]

Mega industrial clusters be set up

06 Jul, 2009 - India
The government will set up mega industrial clusters to support textile and power industries, Finance Minister Pranab Mukherjee said Monday while presenting the union budget for 2009-10 in the Lok Sabha.

New Delhi, July 6 (IANS) The government will set up mega industrial clusters to support textile and power industries, Finance Minister Pranab Mukherjee said Monday while presenting the union budget for 2009-10 in the Lok Sabha.

'We will set up handloom mega clusters in Tamil Nadu and a power mega cluster in Rajasthan,' Mukherjee said.

Source: Press Information Bureau

Source

[Kewl Batty]

Ministry beats deadline & target for weaver cover

NEW DELHI: With a month still to go before the UPA government’s 100-day programme comes to an end, the textiles ministry has surpassed the target
set for extending group insurance scheme for powerloom weavers in the country.

As against the ministry’s set target of covering 25,000 weavers under the modified group insurance scheme (GIS) within the first 100 days of the new government, the ministry, till the end of July 2009, had extended the insurance scheme to nearly 40,000 powerloom workers.

As per the scheme, powerloom weavers are insured for an yearly premium of Rs 330, even though they pay Rs 80. The balance amount is shared by the government and the Life Insurance Corporation of India in the ratio of Rs 150 and Rs 100 respectively. The LIC pays its part of the money from the social security fund of the government. Apart from insurance cover for the powerloom weavers in case of their death or permanent disability, the insurance scheme also entitles their children an educational grant under Shiksha Sahayog Yojana (SSY).

According to data available with the textiles ministry, a total of 39,221 weavers had been covered under this insurance scheme till July 31. Out of the total number of workers covered under the scheme since April 2009, Karnataka State Powerloom Development Corporation (KSPDC) has seen the maximum enrolment of workers at 13,908. Among other beneficiaries which have been part of the extended insurance scheme of the weavers include cities like Coimbatore (8,097), Ahmedabad (4,855) and Mumbai (4,562).

The ministry has also sanctioned six projects at a cost of Rs 2,335 lakhs covering a total of 356 looms, under the modified group workshed scheme. The government had targetted approving six projects for installation of 300 powerlooms, as part of its 100 day programme. The prime objective of the group workshed scheme is to facilitate the establishment of worksheds for modern looms in an existing or new cluster, which will provide required scale of economy for business operations.

[Kewl Batty]

South textile industry posts modest recovery
16 Nov 2009, 1839 hrs IST, ET Bureau

CHENNAI: The outstanding investments in textiles projects in the four southern states and Puducherry added up to at least Rs 6919 crore at the
end of first quarter of 2009-10. These include investments on existing projects and those which are planned and under execution.

Andhra Pradesh topped the chart with an estimated investment of Rs.3379 crore followed by Tamil Nadu ( Rs. 3165 crore), Karnataka ( Rs. 270 crore) and Kerala’s Rs. 106 crore. Thus AP and TN - account for around 95% of total investment, according to the quarterly update of Confederation of Indian Industry ( CII).

The report said thanks to the decline in input costs, selling and administrative costs, and modest growth in sales, the financial performance of the listed textile companies in the region showed a 1.7% increase in operating income (OI) at Rs. 1988 crore during April-June 2009.

It said India’s fabric production increased by a modest 2.7% in Q1 this year mainly driven by a 11.4% year on year (yoy) increase in output of decentralised hosiery sector.

Other sectors also reported modest increases in production—2.1% for mills, and 0.4% for power loom sector. Although yoy production growth rates of textile and clothing products have declined sharply recently, a moderate recovery was witnessed in the first quarter.

Due to sharp Rupee depreciation, India’s textile & clothing (T&C) exports increased 8.1% to Rs. 96300 crore in 2008-09. However, exports in US$ terms declined 5.4% during the same period to US$20.94 billion, representing the first decline since FY02.

Overall in rupee terms, product-wise export trends indicate a significant growth in export of ready-made garments, accompanied by a decline in cotton, and cotton yarns/fabrics/made-up, attributable to a sharp decline in raw cotton exports to China.

[Kewl Batty]

Maran lures global textile cos with ‘sell from India’ policy

Chennai: After his success in attracting foreign direct investment in the telecom sector, textile minister Dayanidhi Maran is now to replicate the success in the fashion industry, especially textiles. His philosophy of “manufacture in India, sell in India and make money in India” had earlier attracted global telecom giants like Nokia, Motorola and Samsung during his stint as the telecom minister. Maran is now trying to attract global textile giants from the West using the same policy, but with an added point— “sell from India” by making India a regional hub for exports.

With foreign direct investment as its theme, Maran is leading a high-level business delegation to Germany and France on Tuesday. A similar delegation had earlier visited Italy, Switzerland and Turkey. Companies from these countries are in talks for either a green field or a joint venture investment with an Indian partner. Simultaneously, many global apparel & textiles companies have started sourcing higher volumes from India, sources in the textile ministry said.

“The comprehensive investment strategy of the minister is to convince large global textile and clothing brands to not only sell in the Indian domestic market, but also set up a manufacturing base for their global markets in India,’’ the sources said.

According to Maran, “in the crowded and mature market of textiles and international fashion, sustained and consistent efforts are required to attract foreign direct investment to India, leading to a greater integration of the Indian textile industry with the global textile manufacturing system. This deeper integration, together with international levels of excellence and global positioning, is likely to result in higher efficiencies and profitability. Such a strategy is critical to shielding the domestic industry from competition form low-cost producers like Bangladesh and Vietnam. The Centre is committed to such long-term efforts and ultimate success’’.

Inaugurating the 25th India International Leather Fair here on Sunday, Maran said a permanent and scientific solution to the environmental problems faced by the leather, textile and sugar industries will be brought about very soon. A high-level committee will also be set up by the environment ministry to study and recommend environmental and emission standards and ways to achieve them.

The delegation is scheduled to meet some large companies in France and Germany, which include Decathalon, Prosher, Thusane, Dormeuil, Deveaux, UP-TEX and Hacot Columbiar. It is also scheduled to hold talks with well-known luxury brands like Louis Vuitton and Hermes in France and Triumph, Multiline, Strennesse AG, Nicholas Weber, Oerkilon, Trutzschler and Terrot GMBH in Germany.

The delegation will showcase the vibrant and dynamic business opportunities offered by the textiles & apparel industry, the domestic market and manufacturing capabilities in India and also highlight synergies between Indo-French & Indo-German companies. Maran’s team will also try to accelerate the pace of integration between textile companies in India, France and Germany.

[ChennaiIndian]

Cross-posting from Coimbatore thread...Courtesy: senthilnatha

Originally Posted by senthilnatha

http://www.fibre2fashion.com/news/te...?news_id=91764

LMW delivers new ringframe model to Chinese clients

October 08, 2010 (India)

Deputy Chief Minister, M.K. Stalin of Tamil Nadu has recently launched a product of Coimbatore-based Lakshmi Machine Works (LMW) in Shanghai , which had established a textile machinery unit in the southern Jiangsu province of China in September 2009. This was the first South Indian venture in China.

LMW supplied its recently engineered ring frame machine, utilized in yarn manufacturing, to its three Chinese clients.

The $12-million manufacturing unit of LMW located adjacent to Shanghai, is just one of the few Indian companies, which have established such units in China and are looking forward to cater to the requirements of the Chinese market

[ChennaiIndian]

http://www.thehindu.com/news/cities/...icle933999.ece

The powerloom sector plans to increase the total number of looms in the country by 50 per cent during the next five years.

“It is a challenging target, but we can meet it,” Chairman of the Powerloom Development and Export Promotion Council Bharatkumar M. Chhajar told The Hindu here on Saturday.

...

[vlakshmi_n]

US share in India's textile exports up, EU's down

The US share in India's textile exports has increased, whereas shipments to the European Union (EU) have declined in the current fiscal, reflecting different economic scenarios in the world's two major economies.

According to disaggregate data, for April-September 2010-11 period, the share of the US in India's total textile exports has increased to about 20 per cent from a shade in the 19 per cent in the year ago. On the other hand, the 27-nation bloc EU contributed 4.50 percentage points less to India's textiles exports at 29.81 per cent for the period under review. Trade analysts attribute the contrasting trend to a pick- -up in the US economy while several countries of EU are facing financial troubles and lack of economic confidence.

Between them the US and the EU account for about 50 per cent of textile exports, which faced difficult times following the recession in these economies between 2008 and 2009. However, the situation has improved in the current financial year. According to the aggregate data, textiles exports as a whole have increased by about 20 per cent between April-January period. The country specific trade data is available only till September 2010. While the textile exports have picked up this year, the ready-made garment component did not show much growth which came mainly from the man-made fibre and cotton made ups.

[ChennaiIndian]

http://www.thehindu.com/business/Ind...cle1462718.ece

The Handloom Export Promotion Council (HEPC) will surpass the targeted figure of Rs.1,350 crore in handloom exports for 2010-2011, said Union Textiles Secretary Rita Menon on Wednesday.

Inaugurating the first edition of India International Handwoven Fair, organised by HEPC, at Chennai Trade Centre, she said that the target would be crossed easily as they were making all-out efforts to promote the handloom sector. Last year, HEPC exported handloom products worth Rs.1,252.80 crore.

Sector has great potential

“To cater for the needs of the global market, the manufacturers and exporters have gone in for made-ups and home textile items from traditional fabrics and dress materials. This sector has great potential and our dream is to take it on to a higher trajectory. Here, we are showcasing a whole array of products, apart from saris, on a single platform and it will become an annual affair. We want retail chains and mega stores to allot dedicated space for handloom products,” she said.

...

[Jayant-Pandit]

Good to hear that India is progressing for the textile industry.

[Krishnamoorthy K]

By : Dr. Seshadri Ramkumar



Introduction:

When the mercury was shooting up above 40 degrees in most parts of India in June, as if I was enjoying the sun, I was on the road meeting with industry people, policy makers and academics. The heat was overcome by pleasant interactions with textile industry people, which enabled me to know firsthand about the technical textiles scenario. This column highlights about where are we in technical textiles, what needs to be done and how to go about to develop the technical textiles base in India.

I could say with confidence that much awareness has been created about the potential and opportunities in technical textiles. Right from political leaders to spinning industry leaders now accept that there is a need for the technical textiles sector to grow. Traditional wings of the textile industry such as spinning, weaving, knitting and garmenting cannot be alone considered as the components of a growing textile industry. Several factors encourage and demand the growth of the technical textiles sector.

Tech-Tex (Technical Textiles) Scenario

Technical textile is a growth sector and many states in India want to grow this sector. In the recent, 2nd Global Investors Meet convened by Karnataka government, Mr. Varthur Prakash, Minister of Textiles of Karnataka proclaimed that Karnataka will be a global hub for technical textiles. Gujarat has been at the forefront in India to realize the potential of technical textiles. Specific support schemes have been created to grow the technical textiles sector. Karnataka government is interested in creating a special policy for technical textiles. In Gujarat, a nonwovens industry association has been started. Already this state is home to two major nonwovens projects: 1) Medical textiles by Finland based Ahlstrom and 2) Wipes project by Ginni Filaments. Generous support from the government of Gujarat is strengthening the Coating and Laminating Center at MANTRA (Man-Made Textiles Research Association) - Surat with the addition of needle punch and Spunlace lines. With this center, India will have 9 Centers of Excellence in Technical Textiles. To my understanding, these taxpayer supported investments make India Number 1 in R & D investments in technical textiles. Indias national mission on technical textiles has done the right thing in establishing R & D centers and providing market support schemes.

What Needs to be Done?

As pointed out earlier, government has invested in the potential of technical textiles. Major trade bodies such as SIMA have realized the potential of technical textiles. The most important next step is to build confidence among entrepreneurs so that investments can be made. This will lead to the translation of knowledge gained in technical textiles over a decade to projects and employment. Recently, I managed to interact with industrialists and bureaucrats to promote the development of technical textiles base in India. The reality on the ground is that investors have money and are willing to invest. Then what prevents the mushrooming of projects?

Key Points to Develop Technical Textiles Base in India

Immediate answers to questions regarding the development and growth of technical textiles sector are:

• Awareness about Converted Technical Textiles Products;
• Educate entrepreneurs that projects can range from 20 lakhs to 5 crores; 5 crores to 50 crores and above. In other words opportunities lie for a whole range of investors;
• Create marketing know-how;
• Government should help with the creation of supply chain linkages in the technical textiles sector and
• Create practical awareness of products in the technical textiles sector that can be sold at retail level.

Two aspects that will support the development of technical textiles sector are:

• Creating marketing know-how and linkages and
• Practical knowledge on the processes and products

Another important support the government can provide is to make high-level trade delegation to the United States and Europe to start with and interact with trade bodies there in technical textiles. This should help in convincing the members of these trade bodies to think about possible investment and collaboration opportunities. This will pave way for Indian entrepreneurs to develop as suppliers/vendors for international companies and kick start joint ventures. This way marketing confidence can be built-up.

Creating confidence by way of marketing linkages is the need of the hour to develop a growing technical textiles sector in India.

Technical Textiles

India : Demand for yarn & fabric set to rise in Indian market
Textile sector rejoices extension of TUFS

[Krishnamoorthy K]

PTI | 07:07 PM,Jul 11,2012
Mumbai, Jul 11 (PTI) Jindal Group will set up a Rs 1,500-crore technical textile unit in Nashik district of North Maharashtra. Textile Minister Mohammed Arif Naseem Khan told PTI today that a letter of intent (LoI) has been issued in this regard after the Group officials met him last week. The Group is currently in the process of acquiring land. About 100 acres will be required for the unit which will manufacture cloth related to automobile applications, sports, security, medical and fire fighting equipment, he said. Technical textile products are used primarily for their technical performance and functional properties rather than their aesthetic or decorative characteristics. Investment proposals worth around Rs 5,000 crore had been received ever since the Government announced a new textile policy a couple of months ago, the Minister said. The policy, which focuses on cotton growing belts of Vidarbha, Marathwada and north Maharashtra, provides for incentives like 10 per cent capital subsidy. Khan said 162 projects are being covered under the new textile policy. He said road shows are being planned in Gujarat, Karnataka and Tamil Nadu to attract investors in the key sector.

IBNLive

Textile, finance ministries to meet on debt recast

[Krishnamoorthy K]

Sujay Mehdudia

The Textiles Ministry has revised the export target for textile products to $40.50 billion for 2012-13, an increase of about 22 per cent compared to the $38.18 billion that was set last year.

“Exports target for 2012-13 was initially fixed at $38.31 billion and has since been revised to $40.5 billion under the new Foreign Trade Policy. The Government has also recommended allocation of Rs. 15,886 crore for Technology Upgradation Fund Scheme (TUFS) during the 12 Plan and the matter is awaiting the approval of the Planning Commission,” Minister of State For Textiles, Panabaaka Lakshmi said in a written reply to the Lok Sabha on Monday. In 2010-11, the country's textiles exports stood at $26.9 billion. Last fiscal, it was $33.31 billion. She also said that there was no report of job loss in the industry due to the slowdown.

Ms. Lakshmi said against the budgetary allocation of Rs. 13,784 crore, an amount of Rs. 12,383.35 crore was utilised during the 11th Plan.

TH