FDI in retail to bring opportunity for Indian T&C leaders

Mr. Deep Mukherji from Fitch Ratings India Pvt Ltd. observed that the softening cotton and cotton yarn prices in first two quarters of the financial year 2011-12 led to a partial margin revival in the sector but not a full-scale demand recovery. Mr. Mukherji stressed upon the fact that reduced substitution demand for synthetic textiles, higher crude-oil based input costs and oversupply in partially-oriented yarn segment were the sources of concern for the industry.

 

Expansion of multi brand retailing expected in the wake of the recent decision of government to allow FDI in the sector will create unprecedented#

Leading textile manufacturers lauded the initiatives of the states to increase the flow of investment in the sector by appropriate policy schemes. Speaking at the summit, Mr. B K Patodia, Chairman, GTN group said that the textile policy of Maharashtra and Gujarat could drive greater investments in these states. With the availability of cotton and other infrastructural facilities like ports and power, these states could generate immense investment interests among the textile entrepreneurs. He observed that the rising cost of production was taking away India’s competitiveness in the textile sector. High interest rates and power costs were the worrying factors for the textile industry, he said.

 

Expansion of multi brand retailing expected in the wake of the recent decision of government to allow FDI in the sector will create unprecedented#

Presiding over the concluding session, Mr. S V Arumugam, Chairman CITI said that the industry’s fragmented nature and structural weaknesses had been preventing it from achieving its potential. Some sectors like fabric manufacturing and processing still languish as weak links in the textile value chain. Though enormous opportunities exist in international trade for the clothing segment, here again structural problems were affecting the competitiveness of Indian producers, in comparison to other Asian industries.

 

Expansion of multi brand retailing expected in the wake of the recent decision of government to allow FDI in the sector will create unprecedented#

The Summit was attended by over 250 participants from various fields connected with the textiles sector. In addition to leading textile luminaries and experts from various fields, the Summit was also addressed by key players from the textile machinery manufacturing sector.

 

Expansion of multi brand retailing expected in the wake of the recent decision of government to allow FDI in the sector will create unprecedented#