Home / Knowledge / News / Textiles / Low demand from US & EU hit textile industry - Supreme Tex Mart
Low demand from US & EU hit textile industry - Supreme Tex Mart
22
Nov '08
Mr Rajeev Bhambri, VP Finance, Supreme Tex Mart Limited
Mr Rajeev Bhambri, VP Finance, Supreme Tex Mart Limited
The Indian textile industry is reeling under the pressure of global financial crunch. Exporters, who were suffering from the appreciation of rupee earlier, are now facing the jolt of international monetary meltdown.

High inflation rate and slow industrial growth has left textile exporters in a dire state.

In communication with Fibre2fashion, Mr Rajeev Bhambri, Vice President Finance, of Supreme Tex Mart Limited, shared his views on global recession and its effects, domestically and internationally.

“The recession is inevitable and it has reached in the roots of every country now. Circle of recession has taken place of growth. It will result in lower growth, leading into inferior income, lower spending power, lessening demand, and thus resulting into lower growth. Breaking this circle is very difficult and it will go on for at least 6 to 7 years. Financial jugglery being done by every country will not save the industry and it will help only the banks,” avers Mr Bhamvri.

Supreme Tex Mart Limited the renowned manufacturer and exporter of yarn, has recently diversified into production and export of fabric and garment.

The company has installed spinning capacity of 72,000 spindles operating at almost 100 percent capacity producing yarn. The fabrics unit has a capacity of making 12 tons of fabric per day on count range of 10s to 40s Ne in various blends and knits. All the machines are capable of doing fabrics with elastic yarns. The garment unit can produce 30,000 T-shirts per day.

Further Vice President Finance stated, “To deal with the situation, there are very few options available at the moment in the spinning. Our priority will shift from selling grey yarn to selling either dyed yarn or garments. Both dyed yarn and garments still command a good amount of margin. Increased sale of dyed yarn and garments and maintaining break even in spinning will hopefully sail us through.”

Discussing the future of the Indian textile industry, Mr Rajeev Bhambri lamented, “Textile industry will be the worst hit due to the lower demand from US and Europe. Indian textile exports was growing only because of over-spending in clothing by US and European people, which they won't be able to afford in future. Moreover there are a lot of companies which are still in process of implementing their projects or have recently completed their new projects. They will have to face higher interest rates and future uncertainty, which will result in failures in repayments of their loans. This will further aggravate their problems.

“Companies with lower debts and value added products will be facing lesser trouble. Small companies will vanish if recession in US remains continued for three years or more.”

Fibre2fashion News Desk - India


Must ReadView All

Textiles | On 25th Sep 2017

SVP Group to build $300 mn spinning plant in Sohar

ShriVallabh Pittie Industries (SVP) Group, a diversified yarn...

Apparel/Garments | On 25th Sep 2017

Vietnam textile sector to gain if EU FTA gets ratified

Experts feel the Vietnam-European Union (EU) free trade agreement...

Courtesy: Business Wire

Textiles | On 25th Sep 2017

Invista to use ADN technology at joint project in France

Invista, a leading producer of chemical intermediates, polymers, and...

Interviews View All

Varinder Singh Jawanda
Trendy Bharat

Sizing and fitting issues are inherent problems for companies expanding...

Abhishek Ganguly
Puma India

‘As a brand, Puma is always looking for new and innovative ways to inspire ...

Headhonchos
Indian fashion industry

Cotton consumption will keep growing in the Indian fashion industry

Kerem Durdag
Biovation II LLC

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

Giorgio Mantovani
Corman S.p.A

Giorgio Mantovani, MD of Corman, with a presence in both Milano and New...

Marten Alkhagen
Swerea IVF AB

Marten Alkhagen, Senior Scientist - Nonwoven and Technical Textiles of...

Anisha Chaudhari
Threads & Shirts

Threads & Shirts is a freshly-tailored concept providing men/women a...

Sanjukta Dutta
Sanjukta's Studio

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

Madhu Jain
Madhu Jain

She grew up in the walled city of Old Delhi, completed her studies, and...

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

September 2017

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

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
74.5%
No
12.8%
Skip
12.8%

Total Votes: 47

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
61.7%
No
25.5%
Skip
12.8%

Total Votes: 47

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
87.2%
No
6.4%
Skip
6.4%

Total Votes: 47

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
70.2%
No
10.6%
Skip
19.1%

Total Votes: 47


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