India's Textile Investments Are On The Rise
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India's Textile Investments Are On The Rise
New Delhi, India | Tuesday, 31st Jul. 2018  | By Reena Mital
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In the first two months of the 2019 fiscal year, textile investment intentions have been high. IEMs worth Rs 5046 crore were filed in April-May 2018. Textiles remains among the top three investing industries.

 

In March 2018, textile IEMs worth Rs 3850 crore, accounted for 10.16% of total IEMs filed in the month. In April, textile IEMs were the third largest category with investment intentions of Rs 1119 crore, accounting for 6.58% of total IEMs filed in the month. In May too, textile investments were among the top three. With IEMs worth Rs 3927 crore, textiles accounted for 8.01% of total IEMs in May.

 

A total of 67 textile related IEMs were filed during March-May 2018. For textile investments, preference for Gujarat has increased more than in the previous years. The state remains the top investment destination for the Indian textile industry.

 

Weaving capacity on the rise

As per the IEMs submitted to the Department of Industrial Policy and Promotion (DIPP), fabric weaving capacity is on the rise.

 

From March-May alone, investment intentions for almost a 100 million metres of cotton and blended fabric manufacturing have been received.

 

Besides denim manufacturing capaciity of 13.2 million per annum has been received from Pinaz Texfab, based in Gujarat.

 

Cotton knitted fabric investments are expected from Arvind Ltd, of a capacity of 254100 kgs per annnum, and from Trident Ltd, with a capacity of 8757 metric tonnes.

 

Textile processing is taking off

Investment intentions are high in textile finishing too, with cotton and blended textile processing leading. During March-May, textile dyeing, processing, printing, finishing capacities of almost 280 million metres are being proposed.

 

Investments in apparel up

Garment capacity is also set to increase significantly, if the three month period under review is an indication. IEMs for 95 million pieces of apparel have been received by DIPP from March-May.

 

These investments do not include the various plans for new capacities and capacity expansions taking place in the various textile clusters, especially the powerloom clusters.

 

Investments in spinning seem to have slowed down, with not more than 10 IEMs received in the three months.

 

Some of the top investors include Arvind Ltd, Trident Ltd, Shahi Exports, Welspun, AHP Garments, Siyaram Silk Mills, Dhanpriya Synthetics, Vardhman Textiles, Shivmay Denim, Pinaz Texfab, among many others.

 

These are encouraging figures for the Indian textile value chain. Weaving and processing were considered weak links of the textile industry. Changes are now afoot.

 

Also, in spinning, the industry has been reeling under the pressure of oversupply and under utilisation of capacity.

 

The slowdown in spinning investments and various closures happening in cotton yarn hubs, will ease pressure. Alongside, the increase in weaving, processing and garmenting capacities will lead to increased demand for India's cotton and synthetic yarns.

 

Gujarat attracts the most investments

A total of 67 textile related IEMs were received from March-May 2018. Of these, 31 IEMs are for Gujarat. In Gujarat, the sites for the projects include Ahmedabad, Surat, Surendranagar, Gandhinagar, among a few others. 

 

Madhya Pradesh was the next preferred destination with 7 IEMs, mostly in Sehore, Khargone and Raisen. Maharashtra received 6 IEMs, all in Vidarbha region. Karnataka, which recently announced an attractive textile policy received 5 IEMs.

 

Rajasthan, which was once a preferred destination seems to be losing its attractiveness.  And Tamil Nadu, which was once competing closely with Gujarat in attracting new investments and capacity expansions, has fallen out of favour. The tough conditions in India's cotton spinning sector has in fact, led to closure of many small and medium sized mills in the state.  Andhra Pradesh received 2 IEMs. 

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