Interview with Mr P Nataraj

Face2Face
Mr P Nataraj
Mr P Nataraj
MD
K.P.R. Mill Pvt Ltd
K.P.R. Mill Pvt Ltd

Please share your comments on growth pattern of knitting industry, globally. Which all are determinants behind?

The Knitting sector is growing globally. European and North American markets dominate the Global knitting market accounting for more than 65%. India and China are regarded as major Clothiers of the World. The industry witnessed a continuous growth till global recession, which brought about a marginal slack in sales.

However, post world economic crisis era, the market bounced back with a forecasting to reach US $140 billion by 2015. Urbanization, need for a trendy life style, greater disposable incomes in the hands of consumers triggered a dramatic shift in the traditional knitting market. Technology has been one of the major factors resulting in a change in the hosiery business. Changing life styles has also contributed to the sea change in the product offerings. The fast growing ‘teen’s market’ necessitates novel hosiery products. The manufacturers have to invest more to acquire latest, sophisticated knitting machines that are capable of greater production with varied specifications.

However there are certain impediments like the present historical hike in cotton prices; substantial slowdown in investment in the Sector after the glut due global recession and discontinuance of TUF In India; Power cuts restricting capacity utilisation at the facilities created; Exchange fluctuations; frequent changes in Govt’s EXIM Policies etc.

Compact yarn segment would further accelerate its growth & profitability reveals your Group. Can you help us understand what aspects would lead this growth?

The focus on yarn market Know-How and trade information brought into light a more demanding but less tapped value added product “Compact Yarn”. Enquiries confirmed that both domestic and international markets were craving for the product due to its unique “Hairiness Free” feature and lesser manufacturing capacity prevailed when compared to huge demand for the product.

Compact spinning is spinning yarn with less hairiness and more strength by aligning the fibres in one line with air suction. It is a modified ring spinning process used in both short and long staple yarn.

Present compact spinning capacity

Tirupur is the Prime Market catering to the yarn and Garment requirements of International Buyers. There are more than 6000 Garment Manufacturers in and around Tirupur, out of which we have 1000 Customers whose yarn / Fabric requirements are met by us. Our Present compact spinning capacity is 12,000 spindles with a production capacity of 2200 Mt per annum. When compared to the demand prevailing for compact yarn, our existing capacity is absolutely insignificant. We presently produce yarn of counts 16’s to 40’s and our present compact yarn capacity does not even fulfill its market demand for a single count. There has been increasing demand in the International Market for compact yarn due to its hairiness free feature. The total compact spinning capacity available in India is only around 10% of the global capacity. The inadequate capacity in the Country made its availability more difficult. Hence, the Exporters buy fabrics made out of conventional yarn and subject it to a further process called “Bio-wash” to remove the hairiness, before Dyeing.

“Bio Wash”

The process of bio-wash to remove hairiness in the conventional yarn results in:

1. Additional cost of Rs 20/kg 2. Additional process thereby reducing the longevity of Fabric. 3. Additional time for Processing. 4. Additional Dyes and Chemicals in fabric

Whereas the usage of compact yarn involves only an additional cost of Rs 8-10/kg, thereby saving Rs10-12/kg, to the Customers, besides eliminating the other constraints. These special features, have kept the demand for compact yarn on the rise.

To cater to the growing demand, owing the following benefits, both at Domestic and International Market, it has been decided to enhance the compact spinning capacity:

i. Value addition ii. Better realization iii. High end Market - hairiness free. iv. Elimination of additional processes of “Bio Wash” vis-à-vis its additional cost.

Hence, expansion of ‘Compact Spinning capacity’, a value added and quality-oriented forerunner is considered to be an ideal and more feasible venture that is expected to enhance the revenue by 25% and EBITDA by 3-5 % upon completion.

Published on: 17/01/2011

DISCLAIMER: All views and opinions expressed in this column are solely of the interviewee, and they do not reflect in any way the opinion of Fibre2Fashion.com.

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