Recent years have witnessed a number of machinery manufacturers contributing to the growth and modernization of the textile industry. Although the current scenario is not very favourable, the future of the industry depends a lot on these manufacturers.
In a casual discussion with Mr. K. Subramaniam, Managing Director, Statex, we get to know more about the current market scenario, which is highly unpredictable. Exports have gone down, yarn markets remain dull, cotton prices keep fluctuating and local markets are bleak with many mills burdened with surplus stocks.
There is however an evidently clear expansion in the northern markets. Asked for his views on the expansion, Mr. Subramaniam says that markets there aim at clearing their stocks because they require adequate funds on a regular basis. The textile industry in India is highly dependent on the Chinese market which has reduced imports to a considerable extent. Production volume in Indian mills is mounting, whereas exports are dwindling. “The future depends on the export market. If exports pick up, then definitely the textile industry will have greater scope for growth.”
According to him, almost 60 per cent of the country’s spindles are in the South. The southern markets are running full owing to reduced exports, ultimately pushing the vendors to give out products at low prices, without any margin. Every mill has to meet its own requirements, and hence making it impossible to set a standard margin.
Being a millowner himself, Mr. Subramaniam is very hopeful that post-October things will definitely start improving. As a manufacturer he says: “Only when mills have surplus money will they think about investment. If they have not earned the targeted profit, then expansion and modernization will not be upto expectation.”
He further observes that Statex has operations throughout the country, and has become a preferred choice among customers when it comes to product quality. “We are receiving a good number of enquiries from export markets like Indonesia and neighboring countries and from customers who are quality conscious. We hope 2015 will be a prosperous year for the Indian textile industry”.