Indian spinning mills join hands to source cotton
October 15, 2012 - India
More than 50 spinning mills from the South Indian textile hub of Coimbatore have come together to source quality cotton at lower prices.
These companies have together floated the Cotton Sourcing Company (Cosco), which is expected to reduce transportation and other expenses, incurred during procurement of cotton by the textile mills.
The textile mills, which are part of Cosco, have a combined capacity of around 2 million spindles, which constitutes around 10 percent of the total cotton spinning capacity in Tamil Nadu.
For the purpose, Cosco has already set up offices in important cotton growing states in the country and it is in the process of establishing a joint venture with a logistics company for transportation of cotton.
The newly formed company has begun procurement of cotton on a trial basis and it will begin full-fledged operations in November.