Home / Knowledge / News / Textiles / Liquidity crisis grips Indian textile sector
Liquidity crisis grips Indian textile sector
Jul '11
Textile mills in the country could be in trouble with banks in the coming days. It may prove to be difficult to access working capital, considering that there still prevails economic uncertainty in the European Union, which is a major market for Indian clothing.

According to a report of the Confederation of Indian Textile Industry (CITI) the overall textile and apparel sector lost a staggering Rs 110 billion, as unprecedented volumes of inventories have built up with companies, as domestic as well as overseas buyers are reluctant to place new orders.

This has put extreme pressure on the liquidity position of the textile and apparel manufacturers.

To top it, spinning mills alone will have to fork out around Rs 70 billion this year as repayment of principal and interest for the loans they had taken for expanding and modernization of spinning units in the last ten years.

This does not include the loans taken by other segments of the textile and apparel sector to either expand or put up new plants.

CITI is of the opinion that the government should announce a relief package for the whole sector in order that companies do not default on their loans or close down, considering the fact that their repayment capacity has declined.

Fibre2fashion News Desk - India

Must ReadView All

Courtesy: Christian Dior

Fashion | On 25th Apr 2017

LVMH to acquire Christian Dior Couture for €6.5bn

LVMH and Christian Dior, which holds directly and indirectly 41 per...

Information Technology | On 25th Apr 2017

Self-repairing fabrics to be the future of fashion

It is the era of smart. Intelligent materials like self-repairing...

Textiles | On 25th Apr 2017

Indonesia revitalising textile sector

With exports of textile and textile products rising in Indonesia, the ...

Interviews View All

Giovanni Pizzamiglio, Paolo Crespi & Riccardo Robustelli
Epson, For.Tex & F.lli Robustelli

‘The percentage share of printing in the global textile market is pretty...

Neel Sawhney
One Friday

‘The share of kidswear segment in the online sector is still small in...

Dharmendra Shah
Ozone PB Spintex Limited

‘We have made huge investments to ensure quality yarn production.’

Paolo Ocleppo
Sandvik Hyperion

Paolo Ocleppo, Rotary Cutting Segment manager, Sandvik Hyperion discusses...

Larry L Kinn
Suominen Corporation

Larry L Kinn, Senior Vice President - Operations Americas of Suominen...

Johan Berlin
InvestKonsult Sweden AB

Investkonsult Sweden AB has been buying and selling second-hand textile...

Judy Frater
Somaiya Kala Vidya

Among the many honours showered on Frater, including Fulbright and Ford...

Igor Chapurin

"Now we can see the Russian trend in international fashion. And Russian...

Prathyusha Garimella
Prathyusha Garimella

Hyderabad-based designer <b>Prathyusha Garimella</b> is known for blending ...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


Letter To Editor

(Max. 8000 char.)

Search Companies

April 2017

April 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.


Browse Our Archives


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search