The Indian Textile Engineering Industry (TEI) is one of the largest capital goods industries in India and has contributed substantially over the last decades to the economy of the country in term of providing modern machinery to the different segments of the textile industry, and exporting about 10 per cent of its production to more than 50 countries.
TEI consists of over 1,455 machinery and equipment manufacturing units. More than 600 units are producing complete machinery and the remaining parts and accessories. The investment in the industry is in the range of Rs. 6,900 crores with an installed capacity of Rs. 8,048 crores.
As a consequence of predominance of the decentralized sector in the textile industry, demand for domestic capital goods (generally) and hi-tech ones (specifically) have almost been non-existent in the past, except in the spinning sector. This, in turn, has influenced capacity creation and technological levels in the textile engineering industry. The entire range of machinery required for spinning is manufactured by TEI. However, in the absence of an economically viable demand in the past, the Textiles Machinery Manufacturing Industry (TMMI) did not build up enough capacity to produce hi-tech weaving, knitting and processing machines, earlier.
In the past, TEI had largely depended on foreign technical/technical-cum-financial collaborations, and indigenous development was not significant. After the liberalization of industrial policy in 1991, the foreign collaborations were not renewed. TEI started upgrading its technology on its own. While the spinning sector was upgraded continuously, the pre-weaving sector followed later. Today the technology of pre-weaving machinery is of international standard. With the spurt in demand after 2004, TEI had geared up its technology level and ventured into shuttleless rapier looms, waterjet looms and airjet loom as well as continuous dyeing range, bleaching range, mercerizing and pre-shrinking ranges.
There has been insufficent research and development by the textile engineering units, and the R&D set-up by the industry at IIT Powai has yet to contribute effectively for the development of technology. However, efforts are being made by TEI to promote R&D.
The fortunes of TEI are linked with the textile industry, and the performance of TEI has also shown significant improvement during 2005-06 to 2007-08 in line with the textile industry.
Production of textile machinery has been steadily increasing over the last few years. However, the acute demand recession during 2008-09 and 2009-2010 has adversely affected the TEI growth significantly. Capacity utilization of the industry has also been increased during the last five years.
Textile machinery is one of the critical inputs in the accelerated growth process of the textile industry. TEI is now supplying 50 per cent of the requirement of the textile industry. It should be encouraged by the Government to increase its capacity further to meet the demand of the different segments of the textile industry in a time-bound manner.
During 2004-05 to 2007-08, production of textile machinery, components, spares and accessories has on an average increased by 20 per cent per annum. Considering the requirement of textile machinery by the industry to achieve its target and the growth, it is projected that production (inclusive of export production) of textile machinery would increase at the rate of 30 per cent per annum during the Eleventh Plan period. However, demand recession during 2008-09 and 2009-10 has adversely affected TEI growth.
The existing installed capacity of Rs. 8,048 crores may not be sufficient to meet the requirement of the textile industry considering the investment projections made by the industry for the XI Plan period. Moreover, the investment trend over the previous couple of years does not show any encouraging sign. Large-scale imports of second-thand machinery, particularly with the subsidy under TUFS, are adversely affecting TEI and its capacity expansion programme. FDI in weaving and processing machinery sector is not forthcoming. Proactive action from the Government might help TEI to increase its capacity in the long run.
Table-15.1: Production of textile machinery
Categories 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10
(Est)
Spinning & Allied machines 2204.63 2618.86 3423.12 3662.22 2417.44 2034.00
Synthetic fibre/yarn machines 376.42 447.20 584.48 625.30 412.79 346.00
Weaving & allied machines 374.23 444.49 580.95 621.64 410.35 345.00
Processing machines 382.36 454.11 593.85 635.19 419.29 351.00
Miscellaneous (spinning,
weaving & processing) machines 111.52 132.42 172.99 185.26 122.00 103.00
Textile testing / monitoring /
controlling equipment / systems 73.34 87.14 114.01 121.86 80.43 68.00
Hosiery needles & machines 30.36 36.04 47.00 50.46 33.31 28.00
Textile machinery parts & accessories 152.41 181.32 237.04 253.07 167.39 140.00
Total 3705.27 4401.58 5753.44 6155.00 4063.00 3415
Percentage increase +20% +31% +7% -34% -16%
Source: Office of Textile Commissioner & TEI
Actual demand for textile machinery, parts and accessories
(Value in Rs. crores)
Years Production Export Production Imports Total %Share
(Minus Exports) (less parts imported Domestic of demand
by machinery Demand met by
manufacturers indigenous
i.e. 15% of production) industry
2004-05 3705 361 3344 1916 5260 64
2005-06 4402 377 4025 4405 8430 48
2006-07 5753 425 5328 6021 11349 47
2007-08 6155 640 5515 4332 9847 56
2008-09 4063 607 3456 3802 7258 48
2009-10(E) 3415 500 2915 3988 6903 42
E= Estimated, Source: Production figures are taken and estimated as per recent survey of Textile Committee; Import and Export data from DGCIS, Kolkata
Actual capacity utilisation of the
textile machinery industry
(Value : Rs. Crore)
Installed Capacity
Year Capacity Production utilisation
2004-05 6,100 3,705 61%
2005-06 7,000 4,402 63%
2006-07 8,048 5,753 71%
2007-08 8,048 6,155 76%
2008-09 8,048 4,063 50%
2009-10 8,048 3,415 42%
E=Estimated, Source: Figures are taken and estimated as per recent survey of Textile Committee
Actual production, export & import of textile
machinery, parts and accessories
(Value in Rs. crores)
Years Production Exports Imports
2004-05 3,705 361 2472
2005-06 4,402 377 5065
2006-07 5,753 425 6884
2007-08 6,155 640 5255
2008-09 4,063 607 4411
2009-10 (E) 3,415 500 4500
E=Estimated, Source : Production figures are taken and estimated as per recent survey of Textile Committee; Import and Export data from DGCIS, Kolkata
Projections of production of Textile Engineering
Industry for the Eleventh Five Year Plan
(Value in Rs. crores)
Years Exports Domestic Total
Production
2007-08 575 3025 3600
2008-09 630 4070 4700
2009-10 700 5400 6100
2010-11 770 7130 7900
2011-12 850 9450 10300
E=Estimated, Source : Production figures are taken and estimated as per recent survey of Textile Committee; Import and Export data from DGCIS, Kolkata