Home / Knowledge / News / Textiles / Invest in backward integration to be competitive – experts
Invest in backward integration to be competitive – experts
29
May '10
On pressure from the value-added textile sector, the government of India had imposed a ban on raw cotton exports from the country in April, which was withdrawn subsequently on May 21, at a time when farmers start cotton sowing activities.

Among many other measures suggested by the textile industry is a proposal to create a cotton buffer stock by the government to help check the volatility in cotton prices, which upsets the productions costs of textile companies.

The government, as and when it takes a decision to protect the interests of one of the segments of the textile value-chain, obviously upsets the other segments. The imposition and later withdrawing the ban on cotton exports is a classic example.

India's cotton output has nearly doubled in a period of just seven years, by means of adopting the latest technologies. Cotton production which stood at 17 million bales in 2002 has now touched 30 million bales in the previous year.

The biggest drawback that has impacted all-round and holistic growth is the matter of backward integration. Other than a few firms like, Reliance Industries, which started off with fabric manufacturing and is now at the last stage of backward integration; oil exploration or for that matter, Arvind Ltd, which has forayed in to contact organic cotton farming, there are not many others of their ilk.

The Chinese textile and apparel sector for example is also cowed down by increasing labour and raw material costs. But it has been able to retain its competitiveness by investing in technology and increasing scale, which has helped it climb up quickly the path of recovery and is now reporting growth in exports since the last few months.

The Indian textile industry has always been clamoring for government control on the raw materials it consumes, but at the same time derides those controls, when it relates to the finished products that they produce.

It is high time, companies across the value-chain invested in backward integration stage by stage as a measure to retain global competitiveness, aver experts.

Fibre2fashion News Desk - India


Must ReadView All

Courtesy: Pexels

Fashion | On 23rd Jun 2018

Nigerian bank launches N1 bn fund for fashion entrepreneur

Nigeria’s Bank of Industry has set aside 1 billion Naira (N) to...

Courtesy: Tayal

Textiles | On 23rd Jun 2018

Tayal textile factory in Algeria starts exports to Turkey

Algeria’s largest textile factory, the joint Algerian-Turkish company ...

Courtesy: Manhattan Beachwear

Fashion | On 23rd Jun 2018

Manhattan Beachwear in global partnership with BCBG Group

Manhattan Beachwear, the largest swimwear manufacturer in the US, has ...

Interviews View All

Top executives
Textile industry

The foremost issue is bridging the skill gap

Top executives
Textile industry, India

The event should be organised every year

Jim Desai
Blaiva Fabricaa

Fashion industry likely to remain labour-intensive in coming years

Carolin Russ

Weko, Weitmann & Konrad GmbH & Co KG, based in south Germany, is...

Suresh P Bagrecha

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

Rajat Jaipuria

Activewear brand Soul Space promotes organic cotton farming and...

Silke Brand-Kirsch
Schlegel und Partner

Silke Brand-Kirsch, executive partner of Schlegel und Partner, a leading...

Kevin Nelson
TissueGen

Kevin Nelson, Chief Scientific Officer, TissueGen discusses the growing...

Mohammad Hassan
Biax Fiberfilm

About one in every 20 patients picks up an infection while hospitalised....

Vaanee Bhatia
Gritstones Clothing

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

Rupa Sood and Sharan Apparao
Nayaab

Nayaab, an exhibition meant to celebrate Indian weaves, is in its second...

Aditi Somani
Aditi Somani

Aditi Somani specialises in luxury fusion wear with international cuts 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

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