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Numerous powerlooms on verge of closure - APOA

07
Nov '08

It has been noted that textile industry in Ahmedabad, Gujarat, is struggling to survive due to international financial crisis, which has weakened the demand significantly.

Especially, powerloom sector is in dire state as many units have either closed down or are barely standing.

President of Ahmedabad Powerloom Owners Association (APOA), Mr Navinchandra Patel, told Fibre2fashion, “Presently, there are around 10,000 in powerlooms in Ahmedabad, and many of them are on the verge of closure.”

Experts predict that around 1000-1500 looms may actually shut down.

Mr Patel said, “The high production cost has cut down margins of the enterprises sizably, making it difficult for them to carry on. Labour shortage is just adding to the problems.”

Finance Minister Mr P Chidambaram in Budget 2008 had announced setting up of powerloom mega-clusters in Erode and Bhiwandi. Sources reveal that for a while now, the association has been demanding a separate powerloom cluster for Ahmedabad and Surat, which is likely provide some relief to the ailing sector.

Fibre2fashion, News Desk - India

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