'Revival of sector depends on govt support' – Cheslind textiles
The textile and clothing sector has received a battering since the last few months due to the impact of the recessionary trends prevailing in global markets. Companies are either cutting down production or are shutting down units, which is leading to an increase in unemployment levels. To get a clear picture of the current and future situation, Fibre2fashion has taken the initiative to speak to a few leaders from the sector. To begin with, we spoke first to Mr Prakash Maheshwari, Director of Cheslind Textiles Ltd.
Cheslind Textiles is a professionally managed and growth oriented company engaged in manufacture of Single, TFO doubled and gassed Yarns. The company operates around 64,500 spindles and produces 6,000 MT of yarn per year and it is a subsidiary of RSWM Limited, a LNJ Bhilwara Group Company. The main unit of the company is located at Bagalur (Tamil Nadu) and the TFO unit is located at Pondicherry. Cheslind works with quality conscious end users in Italy, Switzerland, Portugal, Spain, Turkey, Korea, Japan, Taiwan, Bangladesh and the Middle East.
Mr Maheshwari was very kind enough to spare time from his busy schedule and first began by giving a very detailed assessment by saying, “Generally speaking, on account of global melt down and impact of the recessionary trends prevailing in global markets, there is a great deal of suffering to textile and clothing sectors also. The gap between supply and demand has caused unhealthy competition within our country and across the countries for global trade. When considering the export business, it gets further affected on account of fluctuating rupee/dollar relationship in India and also on account of fluctuating foreign currency relationship in most of the importing countries”.
“At Cheslind, we operate 64,512 spindles, manufacturing medium and fine count 100% cotton yarn. We are suffering additionally on account of power cuts, power tripping and other related issues causing losses. The alternative source of power i.e. oil based diesel generating sets are no more economical to operate with increased cost of fuel. The situation becomes worse when there is no availability of power during the so called peak timings i.e. 6 pm to 10 pm. All these factors lead to extra cost of production and deterioration in quality of the product because of interruptions”, he added.
“Other issues concerning the textile and clothing industry in genera,l relate to availability and pricing of cotton where an abnormal increase in MSP has its impact. The international price of cotton is lower than those prevailing in Indian markets which are a matter of concern for business. High interest costs, blocking of funds in Cenvat, TUF interest subsidy, DEPB, duty drawback etc., is causing serious concern about availability of working capital for running day to day operations. It has further worsened on account of continued cash losses and on account of factors mentioned above, there are production cuts and closing down of units even which is leading to an increase in unemployment levels”, he continued saying.