Interview with Mr JM Balaji

Sector Pulse
Mr JM Balaji
Mr JM Balaji
Head Marketing
Lakshmi Ring Travellers Ltd

Company Details

Business Area:
Manufacturer of Ring Travellers

 

Your group is associated with Yarn market closely. In your opinion what is the state of the Indian spinning industry, today?How do you see your product shaping up in the wake of the yarn market?

Recently, we have seen a sharp drop in yarn production in India. The reasons can be attributed to huge stock pile up of yarn in most mills and inadequate demand for yarn in the market. Many mills have stocked cotton for 3 to 10 months at substantially higher rates than the present prevailing prices. This has back fired on them and are unable to sell yarn at higher prices. Coupled with this the pollution problem of yarn dyers has led to many dyeing units being closed which has impacted the movement of yarn. The government policies with respect to  yarn exports also does not give confidence to International yarn buyers to buy Indian yarn. They feel that Indian government keeps changing the policies haphazardly and are concerned in entering into long term contracts with Indian suppliers. Other issues related to power problem in most parts of India,  labor unavailability are also impacting production of yarn.  

Ring Travellers are the fastest used consumables in the spinning industry. Like food is must for the body, so are Ring Travellers must to run the textile mill. Hence the consumption of Ring Travellers in a mill is directly linked to the production of yarn. If a spinning mill stops the spindles or reduces production or changes counts or material , there is a direct impact on ring traveller consumption.

LRT is a global market leader for Ring Travellers and having a market share of 77% in India. Hence we get the first signs on the performance of the spinning industry which we can clearly read with the volume and profiles of Ring Travellers sold. In this context we can safely infer that presently the present production of spinning units has come down by 20% compared to what it was 2-3 months ago. Although some new spindles have been installed during this period, the net impact is to the tune of 15% reduced production.

Most of the industry experts feel that this is a temporary trend and things should improve in the medium term. With festival season ( Idd, Diwali, Christmas) coming up in another few months, demand for yarn should pick up soon. In the long run, India will be a dominant player in the spinning industry globally. Very few will doubt this.

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Published on: 31/05/2011

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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