Executive Director Arumuga Group of Industries
Which emerging markets are you exploring for your products?
Arumuga is currently exporting all over the world. We are concentrating more on Latin American countries to increase our market share. African markets are also becoming a point of interest for Indian textile industries.
What has been your growth percentage in the last two fiscals?
Arumuga has a growth of about 11 per cent and 14 per cent in the last two fiscals, despite a slowdown in the world textiles industry.
What are your expectations from the coming two fiscals? Which factors will influence your strategies in the two fiscals?
Arumuga is expecting a minimum growth rate of 15 per cent in the coming fiscals, as we are already expanding our production capacities in OE yarn, comber and compact spinning products. We are also hunting new markets for better opportunities which will add to our sales.
Government policies like providing good export incentives, subsidies on investments, interest benefits and free trade agreement (FTA) policies, revising a few old policies that potentially hinder the industry growth, etc, are the main factors influencing our growth strategies.
What is the budget allocated towards R&D?
Arumuga allocates about Rs 3–4 crore on R&D for development and investment in new projects or products annually.
Which policies in the upcoming Budget will ensure growth of your niche?
GST, which will make all taxes nationwide simple and uniform and is expected to be implemented during this budget, may be a good initiative for all the industries, especially the textiles industry. The industry expects more incentives in duty drawback rates and MEIS (Merchandise Exports from India Scheme) and amendments in TUFS (Technology Upgrading Fund Scheme) for the textiles sector. The industry has put to the ministry to bring a reduction in the Hank Yarn Obligation policy. It also desires to bring the number of products in the handloom sector from 16 to 6, which will help the industry grow.
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