Investments in the textile industry are picking up, if IEMs (Industrial Entrepreneurs Memorandum) filed with the DIPP in 2018 are an indication.
As many as 269 IEMs were filed by various sectors of the textile industry in 2018. Around 79 IEMs were filed for yarn manufacturing. This was followed by fabric weaving (and to a much smaller extent knitting) sector proposals, with 49 IEMs. The third largest segment to file IEMs was the readymade garment sector with 48 proposals, followed by technical textiles with 44 IEMs, and processing sector with 31 IEMs. There were 6 IEMs for made-ups manufacturing.
Yarn manufacturing remained the strongest segment
An analysis of the IEM statistics shows that in 2018, the industry revealed its intent to add approximately 1.36 million tons of annual capacity. This would come into operation over the next 1-3 years. The 1.36 million tons capacity includes largely cotton and cotton blended yarns (around 80%), with the remaining being synthetic staple fibre and filament yarns.
Cotton dominates weaving
Based on the 2018 IEMs, around 566.9 million metres of fabric capacity could come up in the country over the next few years. This includes largely cotton and cotton blend fabrics, with synthetics accounting for a smaller share.
Processing capacity takes off too
IEMs filed in 2018, if fully implemented, would add around 700 million metres of processing – dyeing, finishing, printing capacity in the industry.
RMG capacities are picking up
As much as 285 million pieces of readymade apparel capacity could come up in the next couple of years, based on the 2018 IEMs alone. Growing exports, and an expanding domestic market are spurring demand for garments.
Techtex picking up slowly
In 2018, 44 IEMs were filed in the technical textiles segment. Three product categories dominate here – flexible intermediate bulk containers, disposal hygiene products, and coated, laminated, impregnated textiles. IEMs for around 40 million meters of coated and laminated textiles have been filed in 2018. The market, and consequently the production of disposable hygiene products – baby and adult diapers, sanitary napkins and tampons, is picking up noticeably. Almost 8590 million pieces of disposable hygiene products will be produced in the coming years, based again on IEMs in the 2018 calendar year.
Gujarat continues to attract investors
Gujarat attracts the most investments. As many as 98 IEMs out of the total 269 IEMs filed, were for investing in Gujarat. This was followed by Maharashtra (30), Madhya Pradesh (23), Tamil Nadu (19), Karnataka (17), and Rajasthan (16).
Arvind Ltd, Trident Ltd, Shahi Exports, AHP Apparel, are among the top investors, according to DIPP data.