An industry survey by Textile Excellence in the last week of April had shown that between July and September, the industry would achieve full capacity utilisation. A very recent survey by another agency has found that spinning capacity utilisation is fast reaching peak levels. The latest survey lists out the capacity utilisation of top spinners from May 11 to August 13.
The survey covers 24 spinning mills, with total installed capacity of 79.63 million spindles. Overall capacity utilisation had reached 74% on July 23, and 84% on August 13. This is indeed good news for the industry, which has been mired in uncertainty. Vardhman Textiles, according to the survey, had a capacity utilisation of 44% on May 11, going up to 69% by the end of May, 93-98% in July, and 94-99% by August 13.
Trident Group’s spindle capacity utilisation was 24% on May 11, going up to 70% by end of May, 90-95% in July, and 95-98% by August 13. Nahar Spinning reported spindle capacity utilisation at 54% on May 11, going up to 86% on May 31, 90% in July, and 95-98% by mid-August.
RSWM’s capacity utilisation went up from 26% in mid-May to 75% by mid-August. Welspun is the only company that operated at 100% capacity throughout the lockdown. This it did by quickly shifting production to face masks, PPE and other products.
Aarti International’s capacity utilisation went up from 86% in mid-May to 95% in mid-August. Clusterwise, South Zone (Karnataka and Tamil Nadu), account for 27.64 million spindles. Spindle capacity utilisation had come down to 20-22% in mid-May, going up to 28-30% in July, and 55% by mid-August.
North Zone (Punjab, Himachal Pradesh, Delhi, Haryana) has 3.80 million spindles. Capacity utilisation was 40-42% in mid-May, inching up to 45-47% in June and July, and going up to 65% by August 13. Gujarat cluster (Ahmedabad and Surat) has 3.50 million spindles. Capacity utilisation was at 50-52% in mid-May, but fell further to 40-42% in June and July, before moving up to 75% in mid-August.
Madhya Pradesh zone (Bhopal, Indore, Chhindwara) has 1.20 million spindles. Capacity utilisation had fallen between 20-27% between May and July. However, by August 13, capacity utilisation had improved to 60%. Maharasthra has 2.40 million spindles, according to the survey. Capacity utilisation had gone down to as much as 18-20% in May, going up to 25-27% in June and July, & to 60% in August. Rajasthan has 1.20 million spindles. Capacity utilisation in mid-May stood at 30-35%, at 41-43% by the end of May, and at 55% in mid-August.
According to the survey, recovery in the organised sector has been better and faster. With 6.77 million spindles, the capacity utilisation in the organised sector had gone down to 44% in mid-May, moved up to 59% by the end of May, to 70% in June, 74% in July, and 84% by mid-August.
There are 39.74 million spindles in the unorganized sector. Capacity utilisation here was 25% in May, 33% in July, and 58% by mid-August. The organised players were more agile in diversifying their product portfolios that helped them to keep production intact. Also, they were more competent to adopt the safety protocols, which helped them to restart operations.
The survey report further states that Ahmedabad and Ichalkaranji markets have resumed operations at good capacity. A similar trend is witnessed in the southern markets too. Workforce availability is no longer an issue, the report states.