Home / Knowledge / News / Textiles / Weak demand for textile machinery a threat to export revenues
Weak demand for textile machinery a threat to export revenues
04
Sep '08
The 48th Annual General Meeting of the Textile Machinery Manufacturers' Association (TMMA) was held on August 25 in Mumbai where a host of concerning issues were discussed threadbare.

With regard to the exports of machinery, records reflected stagnancy both in terms of overseas demand and exports, overshadowing the industry for the past three years.

Presently the country is exporting machinery products to Malaysia, Indonesia, Pakistan, Sri Lanka, Bangladesh, Egypt, Middle East, Africa, South America and a number of other European countries. Exports this fiscal are expected to fetch Rs4,850 million against Rs4,890 million recorded last year.

This slowdown in textile machinery during 2007-08 has also affected the growth in the textile engineering industry which has dropped from 26 percent to a petty 7 percent and which is likely to register a negative growth for 2008-09 fiscal as well.

While production of textile machinery, parts and accessories has increased from Rs27,990 million in 2006-07 to Rs29,970 million in 2007-08, recording an annual growth of 7 percent, import of textile machinery has dropped considerably from Rs94,340 million last fiscal to Rs75,000 million in 2007-08.

In an exclusive interview with Fibre2fashion, Mr S. Chakrabarty, General Secretary of TMMA, came upfront about some of the key reasons behind the decline in demand and overall growth of the machinery industry. He noted saying, “Slowdown in world economy and Indian textile industry in particular has been adversely affecting the machinery sector in a number of direct and subtle ways.”

Detailing on this point Mr Chakrabarty asserted that the Indian textile industry is in an extremely pathetic condition and since it is co-related to the textile machinery industry the latter is is also bound to get impacted by the backlash. Reasons have been attributed to higher cotton prices, increased power cost, non availability of power, increasing cost of labor and bad labor laws. Besides, accelerating rupee appreciation in the period between 2006-2008 have led to an acute recession in the demand for textile machineries

Orders for these goods have witnessed a drastic plunge of about 40-45 percent and while on the one hand companies are not taking deliveries on time, on the other, payments are also being delayed. As if this was not enough, large scale importing of second hand machineries and cheap Chinese equipments of inferior quality have also turned out be a nuisance for the domestic machinery industry.

In response to a question regarding the measures to be taken to check such alarming downtrend, Mr Chakrabarty opined, “Textile Industry needs to be provided by soft loans schemes. The industry also requires Government support and aid for modernization and research & development. Importing of components at zero duty can also be considered as a viable measure to boost up the textile machinery sector.”

Fibre2fashion News Desk - India


Must ReadView All

Courtesy: Stone Island

Apparel/Garments | On 25th Jun 2018

Stone Island has mastered ingredient branding: Braind

Italian high-end men's apparel brand Stone Island tops the list of...

Courtesy: Tecnorama

Textiles | On 25th Jun 2018

'Tecnorama automatic dyeing system offers efficiency'

Italy based Tecnorama’s fully-automatic machinery for dispensing...

Courtesy: Lenzing

Textiles | On 25th Jun 2018

Lenzing launches Veocel nonwoven speciality brand

Leading fibre company, the Lenzing Group has unveiled Veocel, the new ...

Interviews View All

Sunil Rathore
Lacoste India

‘New vendor is welcome if he offers cost, quality and timely delivery’

Top executives
Textile & apparel bodies

The decision to reduce GST on MMF yarn to 12% is transformational

Dinaz Madhukar
DLF Emporio and DLF Promenade

‘Each event and promotion is planned out keeping in mind the business of...

Nitesh Mittal

Kusumgar Corporates is a leading manufacturer of technical textiles and...

Karan Behal

Karan Behal, founder and chief executive of top-selling brand...

Suresh P Bagrecha

Komal Texfab, founded in 1981, is into manufacturing of knitted fabrics,...

Kai Poehler
Voith Paper GmbH & Co. KG

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

Kerem Durdag
Biovation II LLC

Kerem Durdag, CEO, Biovation II LLC, provides an insight into future...

Johan Berlin
InvestKonsult Sweden AB

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

Nisha Chanda
Whistling Woods International School of Fashion

<div>A lack of upgraded courses in costume designing and fashion as per...

Sanjukta Dutta
Sanjukta's Studio

<b>Sanjukta Dutta</b> creates unique garments by clubbing prints of...

Vaanee Bhatia
Gritstones Clothing

<div>Delhi-based Gritstones Clothing offers quality and exemplary style...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

Leave your Comments


June 2018

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

news category


Related Categories:

Advanced Search