H C Singh

Textile Industry

Despite recession and losses in other sectors of industry and craft there is glimmer of hope in textile industry if it cuts down prices by 10 to 15% to compete with similar industries in Bangladesh and Cambodia. It is indicated that garments produced in Bangladesh are 15 to 25 % cheaper and in Cambodia 15-20% cheaper than those from India.

Because of high cast, India’s exports of textile and clothing during 2008-09 to USA declined by 14% compared to 2007-8. “to $1-70 billion around Rs 8,700 crores”, Gokaldas Export ltd which employs 42000 workers, its export orders had declined by 20-25 % during 2008-09 despite cut in prices by 10-15%. But now Gokaldas Export are optimistic and are opening a new production unit in Hyderabad to produce about 1,00,000 pieces a month and add Rs 50 crore a year to company’s turnover.

Orient craft ltd, apparel exporter company based in Gurgaon, has decided on price cut of 8 to 10% though it will mean a squeeze in profits but is determined to expand the facilities and export more. Similarly Orient Craft which earned about Rs 800 crores in 2008-09 despite recession, is setting up a new garment factory in Bhilwara (Rajasthan) employing 3000 workers and aims to produce about 2,50,000 pieces a month by the end of November 2009 when the new factory in Bhilwara would become operative.

Above all, the most optimistic textile industry, Alok Industries Ltd plans to boost its sales by 30 to 35% and is setting up two new garment factories during 2009. As it had already earned Rs 800 crores during 2008-09.

September 17, 2009 - Posted by | Indian Economy | , ,

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