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India:Textile industry looks ahead with positive outlook |
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2004-11-15
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Midnight December 31, 2004, will ring in new and a brighter future for the textile sector of Gujarat.
The fact that nearly 55 industrial entrepreneurs memorandums (IEMs) were logged in by corporates during the first seven months of this year, shows the industry coming back with renewed vigour and cheer too. Sources in the Industries Commisionerate of Gujarat inform that while 19 smaller projects have been commissioned worth Rs 50 crore during the first seven months in 2003, only 23 projects were commissioned during the year.
Investment to the tune of Rs 2,530 crore for this industry alone, this year even as 35 projects are under implementation phase, injecting in Rs 2,094 crore of fresh investments, highest since 1999.
With the textile quotas getting abolished next year, 47 per cent of the US and European markets will open up for free trade resulting in a significant rise in the demand for textile products.
This has spurred major and small industry players alike, in to renewing investments bids and going for expansion. Some of them like Arvind Mills, Welspun India are creating new infrastructure to cater to the overseas markets post WTO, while smaller ones like Bell Textiles and Alok Industries are going for manufacturing specialised textile products as opportunities for new textile products are increasing with several sectors such as automobile providing new opportunities, informed a senior official of state industries department.
With global car manufacturers establish India as a manufacturing hub, the demand for specialised textile products will be rise in times to come.
Company like Welspun India, the largest towel and terry towel manufacturer of the country has gone for capacity expansion to 21,000 tons from the existing 10,300 tons per year. It has also set up a new bed linen capacity at Rs 400 crore of investment.
GHCL another major soda ash producer, is now diversifying into textile sector allocating around Rs 200 crore for setting up a fabric manufacturing unit in Gujarat.
As per the data compiled by the commissionerate, while in 2002, 77 IEMs were filed for textile projects worth of Rs 304 crore, in 2003, 77 IEMs were filed committing investment of Rs 1,154 crore.
In 2002, 25 textile projects were under implementation bringing in Rs 55 crore of investment next year, 50 projects were under implementation worth Rs 360 crore, which has risen to 35 projects under implementation at the cost of Rs 2,094 crore in 2004.
Surat, southern and leading commercial city of the state, according to the official, is in spotlight and seems set to regain its position in the textile world. Notable is its contribution at 65 per cent of country’s yarn and manmade fabric production, over the years has been facing stiff competition from southern Indian cities having lower electricity tariff apart from infrastructural advantages.
But with the government offering better sops and the Centre stressing on utilisation of TUF, textile sector is in a “resurgent mode,” said a leading manufacturer. |
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