Textile firms raise output with eye on export market
Jan 02 2014
Sanjay S Lalbhai, chairman and MD of Arvind told Financial Chronicle the company is investing Rs 200 crore to set up three garments units of around 15 million capacities across Karnataka and Gujarat. “We will be setting up two factories in Karnataka and one in Gujarat,” added Lalbhai. The company is also eyeing new exports markets beyond US and Europe. “The industry would now be looking at markets such as South Africa, Canada, Japan, Russia,” said Lalbhai.
Over the last one year, Indian textile industry suffered on the back of rupee depreciation, increase in raw material cost, weak demand. The industry could only pass on a part of the increasing cost, which has resulted in squeezed margins. Rahul Mehta, MD of Creative Casualwear, said, “We have to now focus on expansion and modernisation of our apparel plants. The time is now ripe to focus on India due to reducing interest of China and rupee-dollar parity.”
Labour laws need to be reformed to boost textile and clothing industry and raise India’s share in world exports, according to FICCI. According to the 12th plan working group on textiles and apparel, the textiles sector will create an additional employment of 15 million by 2016-17. FICCI projects that textile industry could provide employment to at least an additional 20 million people from the current 45 million to 65 million by 2023. Sunil Khandelwal, CFO of Alok Industries, said, “The current prospects warrant higher capacity expansion. There is also good opportunity for exports in similar markets such as Japan, Russia.”
India earned nearly $15 billion through exports of textiles and apparel in the first six months of the current financial year 2013-14, according to the latest data released by the RBI. According to the data, India exported $14.935 billion worthof textiles and garments during the first half of the current fiscal year, with the readymade garments accounting for $7.074 billion of the same.