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textile sector, the government of India had imposed a ban on raw cotton exports from the country in April, which was withdrawn subsequently on May 21, at a time when farmers start cotton sowing activities.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

Textiles | On 24th Oct 2016

Indian govt plans roadshows to promote textile exports

The Indian government has planned to conduct roadshows to boost the...

Textiles | On 24th Oct 2016

TPP may hit roadblock

The 12-member Trans-Pacific Partnership (TPP) that was signed earlier ...

Textiles | On 24th Oct 2016

Baba Ramdev’s Patanjali to enter textile manufacturing

Patanjali Ayurved, an enterprise initiated by yoga guru Baba Ramdev,...

Interviews View All

Anshul Sood

‘Indian footwear market is nascent and largely a trend follower’

Dharmendra Shah
Ozone PB Spintex Limited

‘We have made huge investments to ensure quality yarn production.’

Neel Sawhney
One Friday

‘The share of kidswear segment in the online sector is still small in...

Paolo Ocleppo
Sandvik Hyperion

Paolo Ocleppo, Rotary Cutting Segment manager, Sandvik Hyperion discusses...

Lynda Kelly
Suominen Corporation

Suominen Corporation is a manufacturer of nonwovens as roll goods for...

Iago Castro Asensio
RCfil Distribuciones S.L.

Iago Castro Asensio, International Business Manager of RCfil...

Jay Ramrakhiani
Occasions Elegance Wear

It is believed that by early 19th century, Varanasi weavers had moved away ...

Sonam & Paras Modi

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

Silvia Venturini Fendi
Fendi s.r.l

"Yes, my confidence and positive attitude are my strengths and should be...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


Letter To Editor

(Max. 8000 char.)

Search Companies

October 2016

October 2016

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


Browse Our Archives


Advanced Search