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Suresh P Bagrecha
Managing Director Komal Texfab Pvt Ltd
GST will get more registered taxpayers under a well-regulated system
Komal Texfab, founded in 1981, is into manufacturing of knitted fabrics, printing, and garmenting and provides electro-automisation technology. Over the next three years, the company plans to reach a turnover of ?500 crore. Suresh P Bagrecha, Managing Director of Komal Texfab talks about the latest developments at the company and suggests ways to improve the textiles sector.
What is the size of the global textiles market? What is the percentage pie claimed by India?
The Indian textiles industry has a strong presence across the value chain from natural to man-made fibres and from apparel to home furnishings. The industry's share in the nation's GDP is 6 per cent and in exports 13 per cent. The sector is the second largest employer after agriculture. After the phasing out of export quotas in 2005 India's export performance has been below expectations. Its share of global exports is around 5 per cent whereas it was expected to rise quickly towards China's level. The Chinese share in global exports is 39 per cent. Vietnam and Bangladesh have shown remarkable success. Vietnam could achieve a peak export growth rate of 30 per cent while Bangladesh could achieve a growth rate of 18 per cent.
Which major sectors/areas in the Indian textiles industry need immediate government intervention?
Simplification of labour laws, effective skill development, and availability of skilled labour and collateral-free loans to SMEs would improve the Indian textiles industry.
As a private enterprise, what is the kind of governmental help that will advance your growth?
Offering financial support to textile mills for technology upgradation and working capital by providing credit at viable rates.
Upgrading schemes like Technology Upgradation Fund Scheme (TUFS), Scheme for Integrated Textile Parks (SITP), Mega Cluster, and Integrated Skill Development Scheme (ISDS).
To promote skill development initiatives at the firm level, those should be sponsored or aided by the textiles ministry or credit point or duty exemption scheme be adopted.
Which factors will have a major impact on the industry's performance in the years to come?
Implementation of GST, global competition, and availability of skilled labour will have a major impact on the performance of the Indian textile industry.
How do you see the Indian textiles industry evolve in terms of technology by 2020?
The future for the Indian textile industry looks favourable, sustained by both strong domestic consumption as well as export demand. With consumerism and disposable income on the rise, the retail sector has experienced a rapid growth in the past decade following the entry of several international players like Marks & Spencer, Tesco, George, H&M and Next into the Indian market. The organised apparel segment is expected to grow at a compound annual growth rate (CAGR) of more than 13 per cent over a 10-year period. The union ministry of textiles, which has set a target of doubling textile exports in 10 years, plans to enter into bilateral agreements with African countries and Australia along with working on a new textiles policy to promote value addition, apart from finalising guidelines for the revised TUFS.
What is the rate at which your company is growing? What is the target set for the next two years?
At the moment we are growing at a rate of 30 per cent. We will maintain the same growth rate for the next two years.
How do you deal with paucity of skilled personnel in your segment?
Multitasking training programme: The company will endeavour to develop a HRD framework for helping employees develop their personal and organisational skills, knowledge, and abilities.
Classroom training centre: The company will also endeavour to provide opportunities for employee training, employee career development, performance management and development, coaching, mentoring, succession planning, key employee identification, and organisation development. Enhancing effective speed of individual will help deal with paucity.
Continuous recruiting of youth: The company's transformational focus of all aspects of HRD will be on developing the most superior young workforce.