FICCI's 7th annual conference on textile and apparel industry 'TAG 2015’
Synthetics to play crucial role in future and can boost Make in India programme
FICCI and management consulting firm Wazir Advisors have said that investment in man-made fibre based industry is an attractive proposition for the Make in India programme. The call came at FICCI's 7th annual conference on textile and apparel industry 'TAG 2015' on the theme 'Beyond cotton: Developing Excellence in MMF based textiles' in Mumbai.
Manoj Patodia, Member, FICCI, in his welcome speech outlined that the share of polyester fibre in Textile and Apparel industry has gradually increased in the recent years from 34 per cent in 2000 to 38 per cent in 2014. This pattern is expected to remain in growth phase as an alternate to cotton.
“FICCI has already sent its representation to Government of India for promoting consumption of man-made fibers to reduce the huge gap between man-made fibres and cotton,” Patodia said.
Wazir Advisors Joint Managing Director, Prashant Agarwal said, “The investment in man-made fiber based textile value chain will help in successfully implementing 'Make In India' initiative for textile sector This will help in reducing the dependability on MMF based fabric imports worth $1.2 billion and make India a self-sufficient country in MMF-based textiles." Textile industry has called for more investment and increase in the market share from meagre 2.2 per cent in man- made fiber (MMF) based textile sector to help government's ambitious plans to grow the size of the segment from USD 110 billion to USD 400 billion in the next few years, he said.
The country imports MMF-based fabrics worth USD one billion from China, Korea and Taiwan due to absence of good quality fabric suppliers in India. Mr. Agarwal said out of total global trade of MMF-based apparel, which is currently pegged at USD 170 billion and India has a very low share of 2.2 per cent. This presents a great opportunity to increase the share of Indian MMF and textile and apparel industry should work together to increase it further.
The Conference in progress
Textile Commissioner’s speech
Increased productivity is the single most important factor which can help the Indian textile industry to sustain and subsequently augment growth, said Dr. Kavita Gupta, Textile Commissioner addressing the conference. Dr. Gupta was of the view that if productivity is increased within the existing labour laws framework, the textile industry can scale new heights and place itself on a higher pedestal in the global textile economy. Textile Commissioner noted that R&D was fundamentally lacking and missing in the Indian textile and clothing domain. R&D is of paramount importance to increase quality and productivity, Dr. Gupta pointed out.
She guaranteed full support of Textile Ministry and Textile Commissioner's Office for the betterment of the industry and called upon the industry leaders to avail of the various schemes launched by the government, particularly the Skill Development Scheme to improve production and productivity in the textile value chain.
She observed that Indian textile industry was standing at cross-roads today and the time had come for the industry to strive to become a global giant in the global textile and clothing arena.
Countries like Bangladesh have overtaken us while Vietnam is on the verge of over-taking us.
We may also be left behind by countries like Ethopia. The textile and clothing industry therefore needs to introspect and gear up to meet the emerging challenges, she stressed. R D Udeshi, President (Polyester Chain), Reliance Industries Ltd in his special address said that the growth of manmade textiles is playing an important role in the textile industry. He said, since Govt of India is aiming to grow the size of Indian Textile & Apparel industry from $110 billion to $400 billion, the input for such size from MMF will also multiply and hence required immediate attention on its development as cotton only may not be able to fulfill that demand.
The government and industry has envisaged that Indian textile industry will grow from the present US $ 110 billion
level to US $ 450 billion in the next 5 to 7 years. Against this backdrop, synthetics will play an important role in the Indian textile domain, observed Mr. R. D. Udeshi.
He pointed out that challenging time lies ahead for one and all within the textile industry - be it raw material manufacturers, supplier and market agencies to meet the US $ 450 billion target. Today, total fibre availability in India is around 9 to 10 million tonnes comprising of cotton and synthetics to meet the demands of US $ 110 billion industry. Therefore, to meet the target of US $ 450 billion, India will have to increase its raw material production to the tune of 25 million tonnes, Mr. Udeshi said.
On the cotton front, RIL Chief said that India after embracing Bt technology has reached production level of 550 kg/ha which can be increased at the most by 1 to 1.5 million tonnes from current 5 million tonnes production to 6 to 6.5 million tonnes in future. Thus, to meet the target of US $ 450 million, the only option is to look towards synthetics - polyester, nylon, acrylic etc, Mr. Udeshi stressed.
He said that India was blessed with all raw materials to produce synthetics, particularly polyesters. India has all raw materials like paraxylene, MEG and PTA to produce polyesters while our competing country. China was still relying on imports of paraxylene and MEG to produce PTA and polyesters. Indian textile industry, Mr. Udeshi said, has the capacity and capability to produce quality textiles. However, we need the support of industry leaders and government. The industry needs a level playing field where in consumer decides whether to use cotton based fabric or synthetic based fabrics.
An artifical choice should not be created by having duty on synthetic and zero duty on cotton and thereby pushing cotton as the product of choice to consumers, RIL Chief emphasised.
Mr. Udeshi recommended and suggested that government should be proactive of various policies and some quick decision making process would also help the industry. India, he said, has an advantage of young population which will drive the demand for textiles. Power and labour is also cheap in India which is an added advantage in favour of Indian textile industry.
Indian labour is cheaper than China. However, we need to concentrate on productivity and efficiency of labour and also move towards automation of industry, Mr. Udeshi said.
Mr. M.M. Choudhary-VP-Marketing Peass Industrial Engineers Pvt. Ltd., Navsari receiving TMMA Special Export Award 2014-15 for Weaving Preparatory &Weaving Mr. M.M. Choudhary-VP-Marketing Peass Industrial Machinery Sector
Mr. R. Jagadeesan - VP-Corporate Administration of Lakshmi Card Clothing Mfg. Co. Pvt. Ltd., Coimbatore receiving TMMA Special Export Award 2014-15 for Parts & Accessories Sector
Mr. Dipak N. Shah, Director Ltd., Vadodara receiving TMMA Special Export Award 2014- 15 for Processing Kusters Calico Machinery Pvt. Machinery Sector
Mr. D. David, Senior Manager - R&D of Lakshmi Machine Works Ltd., Coimbatore receiving TMMA Research & Development Award 2014 -15 for their development of “Card LC 363/361”
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