Home / Knowledge / News / Textiles / Global downturn turns around to be fortunate for local textile sector
Global downturn turns around to be fortunate for local textile sector
26
Dec '08
Mr Sudesh Maheshwari, CEO, 21st Century Textiles Ltd
Mr Sudesh Maheshwari, CEO, 21st Century Textiles Ltd
As international financial crisis of unprecedented scale continues to create havoc on national economies and recession sneaking in, a sense of insecurity due to production cutbacks and job losses is growing in the minds of the people.

High inflation rate and slow industrial growth has been undermining the actual potential of the textile sector. The devastation has not stopped here. Even the production of cotton across the globe is expected to decline in the current season. It is anticipated to decline by 6 percent in 2008-09 due to shrinkage in the area under cultivation.

The status is somewhat similar in Tanzania. The country has been exporting about 75- 80 percent of its cotton crop and since with the crash in prices due to the global meltdown, the export is affected drastically. Lot of forward purchased and contracts are in dilemma.

In an exclusive interaction with Fibre2fashion.com, Mr Sudesh Maheshwari, CEO, 21st Century Textiles Ltd (TCTL), under the flagship company Mohammed Enterprises Tanzania Ltd (METL), threw some light on the current global economic meltdown, and its effects on the Tanzanian garments and textile sector.

Mr Maheshwari stated, “It is too early to find an impact of global economic meltdown in the country like Tanzania on the textile market. The sector at present is catering to the local market and to some extent to the regional African countries. There are very few garment sectors in our country. Apparel units are importing fabrics from developing countries and exporting the finished garments to the European and American markets. Since the numbers are less and because of AGOA, I suppose there is a good scope at present.”

Talking about shrinking cotton demand across the globe, Mr Maheshwari reiterated, “Apart from the economic downturn, the projected decline in the income of developed economies in 2009, tightening credit availability for textile mills and uncertainty regarding the prevalence of the global financial crisis, are the factors that will lead to a cutback in global demand for cotton.”

TCTL an ailing firm was purchased by METL in 2003 as part of the Tanzania Government's parastatal privatisation process. Now it has become East Africa's single largest textile mill, following massive modernization investment by METL post-acquisition. It is one of the most modern mills in the East African region.

The Company has the capacity to produce 4,400 m ton of cotton and blended yarns and 16 million metre of grey and finished fabrics per year. It has already captured a large portion of the Tanzanian market with its range of kitenges, bed sheets, shirting and suiting materials and blended fabrics.

Export products such as, grey fabrics and cotton yarns (carded and combed) are also in high demand and are expected to grow dramatically as the company develops further export opportunities within the European Union and the USA (though the African Growth Opportunity Act 2000).

Must ReadView All

L-R Manish Singhai, COO, Peter England; Vinai Kumar Saxena, chairman, KVIC; Ashish Dikshit, business head, ABFRL and Anshu Sinha, CEO, KVIC while signing agreement. Courtesy: ABFRL

Textiles | On 24th May 2017

Aditya Birla & KVIC enter into a strategic partnership

Aditya Birla Fashion and Retail Ltd (ABFRL) and Khadi and Village...

Courtesy: Jabong

Apparel/Garments | On 24th May 2017

Jabong Mood Store redefines online shopping in India

Jabong, India's leading online fashion retailer, has launched the...

Textiles | On 24th May 2017

Starlinger unveils FX 8.0 circular loom for fabric making

Starlinger, a leading supplier of machinery for woven plastic...

Interviews View All

Yash Agarwal
Hitansh Online

Every market region has its own culture and trends

Md Hanifur Rahman
Aman Group

The level of understanding the job role and organisational requirements...

Amrit Sethia
SOIE

‘The intimatewear category in India is slowly becoming trend-sensitive.’

Suresh Patel
Sidwin Fabric

Sidwin Fabric is a manufacturer and exporter of polypropylene textiles and ...

Larry L Kinn
Suominen Corporation

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

Eamonn Tighe
Nature Works LLC

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

Tony Ward
Tony Ward

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

Sonam & Paras Modi
SVA

Sonam and Paras Modi's Sva Couture is synonymous with head-turning...

Sanjukta Dutta
Sanjukta's Studio

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

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

news category


Related Categories:
May 2017

May 2017

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

SUBSCRIBE


Browse Our Archives

GO


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