Home / Knowledge / News / Textiles / Indian textile & clothing firms make loss in FY12
Indian textile & clothing firms make loss in FY12
May '12
The volatile fluctuations in cotton and yarn prices in both Indian and global markets resulted in changes in inventory levels of textile and clothing companies, and several of them posted a dip in bottom line in fiscal year 2011-12, according to the Confederation of Indian Textile Industry (CITI).

During the six-month period from October 2010 to March 2011, prices of cotton increased from Rs. 34,000 a candy of 356 kg to Rs. 63,000 a candy. The prices then came down sharply to October 2010 levels in the first quarter of 2011-12.

“The roller coaster effect of price fluctuations in the domestic and global markets for cotton and other fibres on one hand, and for yarn and other textile products on the other, led to huge erosion of working capital in the industry and demand destruction in the markets,” Mr. DK Nair, Secretary-General of CITI, told fibre2fashion.

“The industry found it impossible to pass on to the consumers the burden of high cost of raw materials, once the demand for finished products from yarn onward fell drastically. Increasing unsold stocks and steep decline in prices led to huge losses in the spinning and other segments of the textiles industry,” he adds.

The Centre for Monitoring Indian Economy (CMIE) has compiled data for 234 BSE-listed textile and clothing companies for the first three of quarters of fiscal 2011-12 and compared the same with their performance during the corresponding period of the previous fiscal.

According to the CMIE data, 175 of the 234 textile and clothing firms registered poorer financial performance during April-December 2011 period.

The number of net loss making textile and clothing firms grew to 130 during the period under review compared to 53 loss-making companies during the same period in 2010-11.

All the 234 BSE-listed firms together posted a net profit of Rs. 18.5 billion during the first three quarters of 2010-11. However, these firms made a net loss of Rs. 7.342 billion in the first nine months of last fiscal, as per the CMIE data.

Fibre2fashion News Desk - India

Must ReadView All

Textiles | On 27th Oct 2016

Teijin Frontier develops Solotex RC lightweight fibre

Teijin Frontier Co. Ltd, fibre products converting company and part...

Tosha Hays addressing the conference. Courtesy: College of Family and Consumer Sciences, UGA

Textiles | On 27th Oct 2016

Industry experts discuss future of fabrics at UGA

Industry experts, researchers and military officials discussed the...

Textiles | On 27th Oct 2016

Fischer Konzept installs sixth Zünd digital cutter

Fischer Konzept, German developers of individual packaging solutions...

Interviews View All

Asim Dalal
Indo Count Retail Ventures

Today, there is no other emerging market as India, "we make in India and...

Sanjay Yagnik
Maa Tex Speciality

‘We suggest reducing dosage of sizing chemicals to reduce sludge...

Cyril Pereira
Reed Exhibitions India, organiser of Asian Machine Tool Exhibition 2016

'Major problem in the textile machinery manufacturing industry is the lack ...

Eamonn Tighe
Nature Works LLC

Eamonn Tighe, Fibres and Nonwovens - Business Development Manager of...

Kai Poehler
Voith Paper GmbH & Co. KG

The glass mat industry is growing by five to eight per cent annually. Kai...

Ashok Desai
Bombay Textile Research Association

Bombay Textile Research Association (BTRA) is a leading name in textile...

Pranav Mishra

Designers Pranav Mishra and Shyma Shetty’s Huemn is known for its...

Tony Ward
Tony Ward

"You have to truly understand what your client wants, know her needs, what ...

Yash P. Kotak
Bombay Hemp Company

One of the directors of Bombay Hemp Company, Yash P. Kotak, speaks to...

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

October 2016

October 2016

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


Browse Our Archives


Advanced Search