India to export about US$ 300 billion of textile and apparel by 2024-25
RK Rewari, ED and CEO of Morarjee Textiles Ltd, talks about the Indian textiles industry, its flaws and strengths, and the plans of the company in an interview with fibre2fashion.com.
Morarjee Textiles is one among the oldest surviving textile mills in India. How do you see the future, may be in the next couple of years?
A free trade agreement with European Union can seriously turn things around for India; that is looking at enhancing its textiles potential within and outside the country. India is one of the largest producers of textiles. Indian growth is sure as the textiles industry has been able to upgrade itself technically, and India is one of the largest cotton producers as well. In the presence of competitive ready-made garments (RMG) exporters like Bangladesh, Vietnam and Sri Lanka, the Indian textiles industry stands to gain by integrating with them by supplying textiles to them. Government too is extending its support through revised TUF scheme, in addition to policies extended by the respective state governments. We are getting ourselves ready for any such turnaround, and investing in manpower training, modernisation and capacity expansion.
Why has the Indian textiles industry not yet achieved its real potential?
Over the last 10 years, India's textile and apparel exports have grown at the rate of 11 per cent. After the phasing out of export quotas in 2005, India's export performance has been below expectations. Vietnam and Bangladesh have shown remarkable success. Vietnam could achieve a peak export growth rate of 30 per cent, while Bangladesh could achieve a growth rate of 18 per cent. There is no reason why India, provided it takes the necessary steps, cannot achieve 20 per cent growth in exports over the next decade. With a 20 per cent CAGR in exports, India would be exporting about US$ 300 billion of textiles and apparel by 2024-25. India should by then have a market share of 20 per cent of the global textiles and apparel trade from the present level of 5 per cent. India took time to upscale its capacities, and during the last decade our growth had been fragmented and not uniform throughout the supply chain.
What has been the growth story at Morarjee? What is the percentage growth targeted for the next fiscal?
We have targeted a 15 per cent growth for FY 16.
What are the future plans at Morarjee?
We are in an expansion mode. After concentrating on getting its present business set-up to perform efficiently, the company is focusing on expansion. Herein capacities and profit margins will grow, while being sustainable and environmentally-friendly suppliers. We are increasing our printing capacity, but more so, we will also fully integrate in order to capture the value.
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