The manmade fibre (MMF) segment needs to grow substantially if the Indian textile industry has to achieve a turnover of US$ 350 billion by 2025, according to Prem Malik, chairman of Confederation of Indian Textile Industry (CITI).
Speaking at the inauguration of Texfair 2015, the textile machinery, accessories and spares expo, in Coimbatore, Malik said the Indian Government has set a very ambitious revenue target of $650 billion by 2025; however, it is practically possible to achieve $350 billion in ten years time.
Since cotton has cotton has constraints of land availability and productivity limitations, the huge fibre needed to meet the high target set by the textile industry can be met only if the MMF grew substantially, Malik said.
He emphasised that consolidation and integration of production facilities would be another area that requires urgent attention.
Making a comparison of the Indian and the Chinese textile industry, he said, the Indian textile industry generates annual revenue of around $100 billion at present, with exports contributing more than half of that share. In contrast, the domestic textile market of China is estimated to be around $300 billion.
In global markets, MMFs have nearly 70 per cent share in the textile industry, while all MMFs taken together have only a share of around 30 per cent in Indian textile industry’s fibre consumption, he stated.
“Our share in fabric and apparel exports is just four per cent, while China has 44 per cent. We have to do a lot,” Malik said.
“For achieving economies of scale and attracting FDI, we need to scale up our production facilities, especially in fabrics and garments, both of which are dominated by sub-optimal sizes at present,” he added.
Around 180 companies are showcasing their products at the four-day ninth edition of Texfair, being organised by the Southern India Mills Association (SIMA).
T Rajkumar, SIMA chairman, said the Government should soon announce the fibre policy to ensure stability in cotton prices. (RKS)
