Project completion in cloth industry drops during 2013-14

Four projects worth Rs.5.5 billion commissioned during the year

The cloth industry witnessed a decline in project completions during the year ended March 2014. As per CMIEs CapEx database, four projects entailing an investment of Rs.5.5 billion got completed during the year. This was the lowest investment seen by the industry since the year 2005-06.Details of the projects that got completed during the year 2013-14 are given below. Etco Denim invested Rs.3.2 billion on setting up a green-field unit located at Bijapur, Karnataka. At this unit, the company installed a capacity to manufacture 20 million metres per annum (mmpa) of denim fabric. This project got commissioned in May 2013. Siyaram Silk Mills implemented a capacity expansion at two of its existing units located at Tarapur, Maharashtra and Silvassa, Dadra & Nagar Haveli. The combined fabric manufacturing capacity at these units was augmented by 20 mmpa to 60 mmpa. This project, worth Rs.1.4 billion, got completed in March 2014. Siyaram funded the project through a mix of internal accruals and debt. The company raised term loans under the Technological Up-gradation Fund Scheme. With an outlay of Rs.1 billion, Jaya Shree Textiles enhanced the capacity of its plant located at Hugli, West Bengal. On completion in December 2013, the plants annual linen fabric producing capacity increased from three million metres to 10 million metres. Italian Luxury Garment set up a fabric manufacturing facility at Tirupur, Tamil Nadu in July 2013. An annual weaving capacity of three million metres was installed at this facility. The investment details of the project are unavailable.Other than these, three projects were partially completed in 2013-14. Nandan Denim and OCM India commissioned phase-I of their respective projects. Nandam Denim augmented its annual weaving capacity by 22 million metres in September 2013. In June 2013, OCM India added 0.7 mmpa of fabric producing capacity. Nandam Denim is expected to commission its project in March 2015. Completion schedule of OCM Indias project is not available.Fairdeal Textile Park is in the process to set up an integrated textile park at Surat, Gujarat with an investment of Rs.1 billion. This park will accommodate 30 industrial units capable to manufacture 165 ttpa of texturized yarn and 198 mmpa of woven cloth. Eleven units got commissioned during the year 2013-14. The remaining units are expected to come up by March 2016.During the year 2013-14, fresh investment proposals in the cloth industry declined sharply. Just one project worth Rs.two billion got announced as compared to average project announcements worth Rs.15.5 billion made in the preceding nine years.The only project announced in 2013-14 was by Mafatlal Industries. The company plans to expand the capacity at two of its existing units at Kheda and Valsad, both located in Gujarat. This project is scheduled to get completed in March 2017.

Cotton & blended yarn projects worth Rs.7.1 billion completed in 2013-14

Capacity to manufacture 229.5 thousand tonnes of yarn installed during the year

As per CMIEs CapEx database, the cotton & blended yarn industry witnessed a healthy capacity addition during the year ended March 2014. A total of seven projects envisaging an investment of Rs.7.1 billion got commissioned during the year. The industrys cotton yarn and blended yarn manufacturing capacity was augmented by 229.5 thousand tonnes per annum (ttpa).Details of the projects which got commissioned in 2013-14 are as follows:-Oswal Woollen Mills green-field plant located at Rajgarh, Madhya Pradesh went on stream in March 2014. The project got completed in two phases. In phase-I, which got commissioned in February 2013, the company added a cotton spinning capacity of 3.4 ttpa. It also installed 80 looms to produce denim fabric. In phase-II, the company augmented the spinning capacity to 8.6 ttpa and installed 24 additional looms. It also installed 864 denim rotors in this phase. The project, which is spread across an area of 97.6 acres, entailed an investment of Rs.3.6 billion. This was funded through a mix of internal accruals and debt. The company raised term loan under the Technological Up-gradation Fund Scheme (TUFS).In January 2014, Shiva Fibres completed its cotton yarn project located at Ludhiana, Punjab. The company invested Rs.1.5 billion on this project.T T L doubled the cotton spinning capacity of its plant located at Amreli, Gujarat to 10 ttpa. The project, which got completed in April 2013, cost the company Rs.1 billion. The project will be able to avail of incentives like electricity rebate, VAT exemption, and seven per cent interest subsidy for a period of five years under the Gujarat Textile Policy, 2012.Nagreeka Exports invested Rs.730.5 million on setting up a new unit at Kolhapur, Maharashtra. At this unit, the company installed a yarn dyeing and cotton bleaching capacity of 16 ttpa. The project got commissioned in May 2013.National Textile Corporation, a Government of India undertaking, implemented capacity expansion programme at two of its existing facilities located at Bhopal and Burhanpur, both in Madhya Pradesh. The company added a capacity to produce five ttpa of cotton yarn each at these facilities. The project at Bhopal got completed in July 2013 while the one at Burhanpur was commissioned in October 2013. The company invested Rs.140 million and Rs.180 million, respectively, on these projects.Vardhman Polytex augmented the yarn producing capacity of its plant located at Solan, Himachal Pradesh to 8.2 ttpa from five ttpa. This project got completed in July 2013. The cost involved in the project could not be ascertained.Besides the above mentioned projects, SEL Textiles and Winsome Textile Industries partially commissioned their units in 2013-14. Both these companies completed phase-I of their respective projects in April 2013. SEL Textiles installed a yarn manufacturing capacity of 37.6 ttpa at its new unit located at Muktsar, Punjab. Winsome Textile industries added a capacity to manufacture 8.2 ttpa of yarn at its unit located at Solan, Himachal Pradesh. It also added a yarn dyeing capacity of 8.6 ttpa.Although project completion in the cotton & blended yarn industry was healthy, four projects were stalled during the year 2013-14. Details of these projects are given below. Shree Siddhivinayak Cotspin and Prag Bosimi Synthetics, both, put on hold their respective projects due to fund constraints. Prag Bosimi Synthetics canceled the expansion plan of its unit located at Assam. Investment details of this project could not be ascertained.A delay in sanctioning of loans by the lending bank forced Shree Siddhivinayak Cotspin to stall its project at Kolhapur, Maharashtra. The company had planned to add a spinning capacity of 1.8 ttpa at a cost of Rs.600 million. Suryavanshi Spinning Mills shelved its Rs.800 million worth cotton yarn project at Warangal, Andhra Pradesh. The company had plans to install a capacity to manufacture 5.4 ttpa of cotton yarn. Suryalakshmi Cotton Mills deferred its intention of setting up a new spinning unit at Nagpur, Maharashtra. The company is currently focusing on some other projects due to which this project was stalled.

Fresh investment proposals in cotton & blended yarn industry rise sharply in 2013-14

Projects worth Rs.28.5 billion announced

The cotton & blended yarn companies announced projects worth Rs.29.3 billion per annum during the three years ended March 2012. The average annual announcements dropped to almost Rs.1 billion in the subsequent year. However, a buoyant demand for cotton yarn and blended yarn in the domestic as well as the export market is likely to have revived the project announcements in the industry in 2013-14. As per CMIEs CapEx database, 10 projects entailing an investment of Rs.28.5 billion got announced during the year.Details of the projects that were announced during April 2013-March 2014 are as follows:- Among the projects announced in the cotton & blended yarn industry during 2013-14, the most prominent one is by Trident. The company is planning to invest Rs.16.7 billion on the capacity expansion of its plant located at Sehore, Madhya Pradesh. An additional capacity to spindle 38.8 thousand tonnes per annum of cotton yarn is likely to get added. Besides this, the company is expected to set up 500 looms capable of manufacturing 42.3 million metres per annum of bed sheeting fabric. The project is scheduled to get commissioned by September 2015. K P R Mills and Abirami Amman Mills signed a Memorandum of Understanding (MoU) with the Government of Tamil Nadu in February 2014 to come up with new manufacturing units in the state. Under this MoU, K P R Mills will invest Rs.6 billion for setting up a cotton yarn and hosiery yarn manufacturing plant at Palani.On the other hand, Abirami Amman Mills proposed to invest Rs.2.6 billion on setting up a cotton yarn producing facility at Dindigul. Both these projects are expected to come on stream by March 2017. Nitin Spinners announced its plans to enhance the annual spindling capacity of its unit located at Bhilwara, Rajasthan by 73 thousand spindles to 150 thousand spindles. The project entails a cost of Rs.2.8 billion and is expected to get completed by March 2015. Sutlej Textiles & Industries announced an investment of Rs.1.8 billion to expand the capacity of its dyed yarn manufacturing unit located at Kathua, Jammu & Kashmir. Post the expansion, the facilitys installed capacity will be augmented from 260 thousand spindles to 291 thousand spindles. The company is yet to announce the completion schedule of the project. Rajsamadhiyala Spintex is expected to come up with a rupees billion worth cotton yarn project at Rajkot, Gujarat. Under this project, the company is likely to add a capacity to manufacture 7.2 thousand tonnes per annum of cotton yarn by December 2014. Amitara Green Hi-Tech Textiles Park and D D Spintex Park, both, are planning to build a textile spinning park in Gujarat. While the former is expected to set up the park at Kheda, the latter will do it at Bharuch. The investment in these projects is pegged at Rs.920 million and Rs.820 million, respectively. The completion schedule of these projects could not be ascertained.Both the projects received an in-principle approval from the Government of Gujarat in December 2013. The State government is likely to provide financial assistance to these companies under the Gujarat Textile Policy, 2012. With an investment of Rs.600 million, Jolly Spinning Mills is likely to set up a cotton yarn facility at Surendranagar, Gujarat. The green-field facility is expected to have a capacity to manufacture 3.6 thousand tonnes of yarn per year. The plant is scheduled to get operational in October 2014. Arunoday Fibre to Fabric Development Services is in the process of setting up a cotton yarn unit at Dhule, Maharashtra. A capacity to manufacture 1.3 thousand tonnes per annum of cotton yarn is likely to get installed at this unit. The company expects to commission the project, worth Rs.250 million, in June 2014

Cotton and blended yarn projects worth Rs.32.8 billion to come on stream in 2014-15

Capacity to manufacture 169 thousand tonnes of yarn to be added during the year

As per CMIEs CapEx database, project completion in the cotton & blended yarn industry is likely to have dropped to a eight year low in 2013-14. Eight projects entailing an investment of Rs.8.1 billion are estimated to have come on stream during the year. These projects are likely to have added a capacity to manufacture 233.5 thousand tonnes per annum (ttpa) of cotton and blended yarn.The project completions in the industry are expected to gain momentum in the next couple of years. In the fiscal 2014-15, investments by the cotton & blended yarn companies are expected to quadruple to Rs.32.8 billion. This will be the second highest investment to be made in the industry in a single year. A capacity to manufacture 169 ttpa of cotton and blended yarn will be added during the year. In 2015-16, projects worth Rs.17.6 billion are expected to get completed. These will add a capacity to manufacture 38.8 ttpa of yarn.Trident is the largest contributor to the total investment to be made by March 2016. Of the companys total Rs.28.7 billion worth of investment, Rs.16.7 billion would be invested towards the capacity expansion of its manufacturing facility located at Sehore, Madhya Pradesh. Under this project, the company will install 176 thousand spindles which will produce 38.8 ttpa of cotton yarn. To diversify its product portfolio, the company will set up 500 looms with an annual capacity of 42.3 million meters of bed-sheets. The project is expected to come on stream by September 2015.The remaining amount i.e. Rs.12 billion will be invested to carry out expansion at two of its existing facilities located at Sehore, Madhya Pradesh and Sanghera, Punjab. The project is being executed in a phased manner. On completion of phase-II in September 2014, the project will add 26.9 ttpa of yarn manufacturing capacity and install 2,040 rotors. In phase-I, which got completed in March 2012, the company added 13.1 ttpa and 15.2 ttpa of yarn capacity at Sanghera and Sehore, respectively. It also installed 1,664 rotors at Sanghera.Vertex Spinning is in the process of setting up an integrated mega textile park at Dhule, Maharashtra by April 2014. The park, entailing an investment of Rs.5.1 billion, will have a yarn spindling and twisting capacity of 161 thousand spindles per annum. Along-with this, 1.5 thousand tonnes of yarn dyeing capacity, 18 million meters of yarn weaving capacity and 20 million meters of fabric processing capacity will be installed.Nitin Spinners is expected to invest Rs.2.8 billion on the capacity expansion project of its unit located at Bhilwara, Rajasthan. On completion in March 2015, the plants annual spindling capacity will be augmented from 77 thousand spindles to 150 thousand spindles.Nahar Spinning Mills Sangrur yarn project is in its last stage of completion. The company is scheduled to commission the fourth phase of the project in April 2014. On completion, 5.8 ttpa of yarn capacity is expected to get added. Previously, the company added a total of 6.2 ttpa of cotton yarn capacity in three phases. These phases got commissioned between March 2011 - September 2012. The cost of the project is pegged at Rs.2.3 billion.Winsome Textile Industries is implementing a Rs.2.2 billion worth brown-field project located at Solan, Himachal Pradesh. The company is scheduled to commission a circular knitting capacity in April 2014. Earlier, in April 2013, yarn spinning and dyeing capacity of 8.2 ttpa and 8.6 ttpa, respectively, got added.Other cotton & blended yarn projects worth more than Rs.1 billion that are scheduled for completion during 2014-16

Company NameProject NameProject Cost (in Rs.million)Project LocationCompletion By

Suryalakshmi Cotton MillsRamtek Ultra Modern Spinning Project1,400Nagpur, MaharashtraMarch 2015

Vraj Integrated Textile ParkBidaj Integrated Textile Park Project1,054Kheda, GujaratDecember 2014

Government Of Tamil NaduMulti-location Spinning Mill Modernization Project1,040Multi-locationDecember 2014

Rajsamadhiyala SpintexRajkot Cotton Yarn Project1,000Rajkot, GujaratDecember 2014

Synthetic fibres manufacturing capacity to increase by 800.8 thousand tonnes in 2014-15

Projects worth Rs.5.6 billion to get commissioned

The man-made filaments & fibres industry is likely to have seen a completion of projects worth Rs.21.1 billion in 2013-14, the highest in a decade. This investment, spread across five projects, is likely to have added a capacity to manufacture 701.9 thousand tonnes of synthetic fibres during the year. Companies like Ganesha Ecosphere, Raj Rayon Industries, Sharmanji Yarns and Grasim Industries are likely to have contributed to this capacity addition.Project completion in the industry is expected to remain upbeat even in the year ending March 2015. According to CMIEs CapEx database, four projects envisaging a total investment of Rs.5.6 billion are expected to come on stream during the year. With this, the industrys annual synthetic fibre manufacturing capacity is expected to increase by 800.8 thousand tonnes. Further in 2015-16, two projects are expected to add 360 thousand tonnes of capacity to the industry. The investment for this is pegged at Rs.26.2 billion. This is expected to be the largest ever investment seen by the industry in a single year.Details of the projects that are expected to be commissioned during April 2014-March 2016 are as follows:-Of the total investment to be made during 2014-16, nearly 55 per cent will be made by Nakoda. The company plans to invest a massive Rs.17.5 billion on setting up Indias only fully integrated yarn plant at Surat, Gujarat. At this facility, the company will have a combined capacity to manufacture 280 thousand tonnes per annum (ttpa) of partially oriented yarn (POY) and fully drawn yarn (FDY) through continuous polymerisation and direct melt spinning. Around half of this production will be captively consumed at Surat super spun yarn park.Along-with this, the company will set up a research and development facility to develop speciality yarns. On completion of the project in March 2016, the company would be able to cater to an entire range of polyester yarns to the domestic and the international market. Nakoda plans to fund the project through a mix of equity, internal resources and long term debt.With an investment of Rs.8.7 billion, Lenzing Modi Fibres India intends to set up a new viscose staple fibre (VSF) manufacturing facility at Panvel, Maharashtra. The project is expected to add an annual capacity to manufacture 80 thousand tonnes of VSF. The project is almost five years behind its expected completion schedule due to difficulties in getting environmental clearances. The company is likely to commence operations at the unit by December 2015.Reliance Industries is in the process to set up a green-field unit at Silvassa, Dadra & Nagar Haveli. The capacity to manufacture 395 ttpa of polyester filament yarn (PFY) already got commissioned in January 2014. The company is scheduled to add a capacity to manufacture 140 ttpa of polyester texturised yarn (PTY) by May 2014. Investment details of the project could not be ascertained.DNH spinners plans to expand its synthetic fibre manufacturing unit at Silvassa, Dadra & Nagar Haveli by April 2014. This unit will have a combined capacity to manufacture 365 ttpa of POY, FDY and polyester staple fibre (PSF). Besides this, the company will add a PTY manufacturing capacity of 276 ttpa. The company plans to invest Rs.5.1 billion on the unit.In May 2014, Baid Industries is scheduled to commission phase-III of its capacity expansion project located at Surat, Gujarat. In this phase, the company will add a capacity to manufacture 14.6 ttpa of polyester yarn. The phase-I and the phase-II of the project got completed in March 2011 and March 2012, respectively. In these phases, the company added a capacity of 1.3 ttpa and 5.3 ttpa of polyester yarn, respectively. The entire project is expected to cost Rs.500 million.Indorama Industries is expected to commission phase-II of its capacity expansion project at Baddi, Himachal Pradesh in December 2014. In this phase, the company will add a capacity to manufacture five ttpa of spandex yarn. The plants annual capacity will be further augmented by five thousand tonnes in phase-III. However, completion schedule of this phase is unavailable. Indorama is expected to invest Rs.six billion on both these phases. The company commissioned an equal amount of capacity in phase-I of the project in April 2012. This phase entailed an investment of Rs.four billion.

Indias apparel exports to US grow by 4.3% y-o-y in February 2014

Market share improves for yet another month

According to the data released by the Office of Textiles and Apparel (OTEXA) of the U.S. Department of Commerce, Indias apparel exports to the US rose by 4.3 per cent in February 2014. During the month, the country exported apparels worth USD 301.5 million as compared to USD 289 million in February 2013.The growth in export earnings during February 2014 was driven by higher volumes. Indias apparel export volumes rose by nine per cent y-o-y to 82.8 million square meters during the month. This was the eleventh month in a row, wherein the apparel export volumes of the country improved on a y-o-y basis. The countrys share in total apparel exports to the US improved by 30 basis points to 4.8 per cent as compared to the same month a year-ago.Other than India, Vietnam was the only one among the top five countries which reported a rise in exports to the US in February 2014. While the Vietnams apparel export volumes rose by 6.5 per cent, its export earnings grew by a smart 11.8 per cent y-o-y during the month. This helped the country to improve its hold in the US apparel export market. Vietnams market share improved by 140 basis points to 11.7 per cent in February 2014 as compared to the corresponding month a year-ago.China, the largest apparel exporter to the US, reported a 12 per cent decline in, both, its apparel export volumes and earnings. This was the steepest decline reported by any apparel exporting country to the US during the month. Resultantly, the countrys market share eroded by 380 basis points to 33 per cent in February 2014. Indonesia and Bangladesh too witnessed a drop in their exports to the US. Their market share declined by 30 basis points and 50 basis points to 6.6 per cent and 6.4 per cent, respectively.During April 2013-February 2014, India exported apparels worth USD 2.9 billion. This translates in to a growth of 9.5 per cent. A 10 per cent increase in export volumes led the growth in earnings. During the said period, India shipped out 815.3 million square meters of apparels to the US. Average realizations remained flat at USD 3.6 per square meter. The countrys share in the US apparel market improved by 20 basis points to 3.9 per cent.During the 11-month period ended February 2014, Chinas market share eroded by 110 basis points to 37.9 per cent. Vietnam reported a 100 basis points expansion in its market share to 10.4 per cent during the aforementioned period. While the market share of Bangladesh improved by 40 basis points to 6.1 per cent, that of Indonesia declined by 30 basis points to six per cent.

Net profit of ready-made garments industry grows three-fold in December 2013 quarter

Sales up by robust 28.1%

The ready-made garments industry recorded an impressive growth in profits in the December 2013 quarter. While the industrys operating profit grew by 62.1 per cent, its net profit rose by 199.4 per cent during the quarter. This was the third consecutive quarter of a triple-digit growth in net profit. A robust growth in sales and a tight control over expenses helped the industry to post a spectacular growth in profits.Aggregate net sales of the 23 companies, that declared their December 2013 quarter results, grew by a strong 28.1 per cent. The growth in sales was across the board with 18 companies recording higher sales as compared to the year-ago quarter. Total net sales of the five large-sized companies (quarterly revenues more than Rs.1 billion) grew by a robust 31.3 per cent. These companies contributed two-third of the industrys sales during the quarter. Net sales of the nine mid-sized companies (quarterly revenues between Rs.100 million to Rs.1 billion) grew by a smart 21.4 per cent. A pack of nine small-sized companies (quarterly revenues less than Rs.100 million) recorded a whopping 46.7 per cent growth in sales during the quarter.Net sales of Page Industries, the largest listed company, grew by a robust 39 per cent in the December 2013 quarter. Higher volumes and increase in realisations contributed equally to the growth in the companys top-line. Gokaldas Exports, one of the Indias largest garment exporter, posted a healthy 11 per cent growth in sales. Pearl Global Industries and Sudar Industries recorded a 49.3 per cent and 60.2 per cent increase in revenues, respectively.An increase in demand from, both, the domestic and overseas market gave fillip to the industry. Domestic demand improved on account of a festive season. Apparel off-take from the major export destinations like the US and European Union remained healthy owing to economic recovery in those countries. Besides, a sharp 12.7 per cent depreciation in the rupee against the USD is likely to have supported the growth in export earnings. According to the data released by the Directorate General of Commercial Intelligence and Statistics, Indias apparel exports grew by a robust 39.6 per cent to Rs.214.4 billion during the quarter. Exports account for nearly one-third of the apparel industrys sales.Prices of key inputs, cotton and synthetic yarns, averaged 6-12 per cent higher in the December 2013 quarter. According to media reports, fabric prices too rose during the quarter. In spite of this, raw material expenses grew by 26.3 per cent, slower than the growth in sales. This is likely to be on account of an improvement in export realisations owing to rupee depreciation. Wage bills and other expenses too rose at a slower pace of 6.4 per cent and 3.3 per cent, respectively. Resultantly, operating expenses of the industry grew by 17.5 per cent, slower than the sales growth.However, the industry piled up inventories amounting to 3.4 per cent of sales as compared to 8.1 per cent in the December 2012 quarter. After adjusting for this, total operating expenses grew by 23.2 per cent. Nevertheless, this was still slower than the growth in sales. Consequently, the industrys core operating profit margin improved by 244 basis points to 11.7 per cent. Even in the preceding four quarters, the operating margin had improved by 130-440 basis points.The industrys interest outgo and tax provisions grew by 13.8 per cent and 15.3 per cent, respectively. This was much slower than the growth in the operating profit. Moreover, depreciation charges declined by 10.4 per cent. This was due to a 19 per cent and 43 per cent fall in depreciation charges of Gokaldas Exports and Sudar Industries, respectively. This resulted into a 320 basis points expansion in the net profit margin to 5.5 per cent. This was the highest net profit margin recorded by the industry since the December 2007 quarter.Net profit of the large-sized segment rose by an extraordinary 645.3 per cent during the December 2013 quarter. This was primarily on account of Gokaldas Exports. The company reported net profit equivalent to 0.4 of total income as against a net loss equivalent to 18.7 per cent in the December 2012 quarter. Aggregate net profit of the nine mid-sized companies grew by a smart 28.9 per cent in the December 2013 quarter. The small-sized segment reported profits during the quarter as against losses incurred in the year-ago quarter.

Man-made filaments & fibres industrys sales growth accelerates in December 2013 quarter

Net sales up by 4.8% y-o-y

The man-made filaments & fibres industry began the year 2013-14 on a sluggish note. The industrys sales grew by a mere 0.6 per cent y-o-y in the June 2013 quarter. Nevertheless, the growth in industrys sales improved to 3.7 per cent in the September 2013 quarter. The acceleration in sales growth continued during October-December 2013 as well. Aggregate net sales of the industry rose by 4.8 per cent y-o-y during the quarter.The growth in sales was across the board. Of the 37 companies that declared their results for the December 2013 quarter, 25 reported higher sales. Moreover, 80 per cent of these companies posted a double-digit growth in net sales. Leading this pack were Filatex India, Sportking India, Ganesha Ecosphere, Deepak Spinners, Welspun Syntex, Suryaamba Spinning Mills and Premier Synthetics with a sales growth in the range of 15-32 per cent. Net sales of Indian Acrylics rose by an impressive 72.8 per cent.Grasim Industries, the largest company in our sample, also posted a strong 19.4 per cent y-o-y growth in sales the December 2013 quarter. Net sales from the companys viscose staple fibre (VSF) segment, accounting for 80-82 per cent of total sales, grew by 21.4 per cent. The company attributed this rise to higher sales volumes in, both, the domestic and export markets. Its sales volumes improved by 24 per cent y-o-y to 97,049 tonnes during the quarter supported by an increased capacity of VSF at its Harihar plant. Revenues of its chemicals segment grew by a modest 5.1 per cent during the quarter.Net sales of JBF Industries, a major polyester manufacturer, rose by a smart 11.1 per cent. This was completely a price driven growth. Polyester staple fibre prices (PSF) and partially oriented yarn (POY) prices averaged 6-12 per cent higher in the Mumbai market in the December 2013 quarter.Among the 12 companies that reported a decline in sales Garden Silk Mills and Indo Rama Synthetics are large-sized companies having quarterly net sales above Rs.5 billion. These two companies together contributed 16.4 per cent to the industrys total revenues in the December 2013 quarter.Net sales of Garden Silk Mills slipped by a sharp 19.1 per cent during the quarter. Net sales of Indo Rama Synthetics fell by a sharp 16.1 per cent in the December 2013 quarter. This was on account of lower polyester volumes. The company had hiked the prices of PSF and POY by 20-26 per cent y-o-y in the December 2013 quarter.Had it not been for these two companies, the man-made filaments & fibres industrys net sales would have grown by a smart 10.8 per cent y-o-y in the December 2013 quarter.

Cotton & blended yarn industry reports triple-digit growth in net profit in December 2013 quarter

Operating profit up by 19.6%

The cotton & blended yarn industry reported a whopping 154 per cent growth in net profit for the December 2013 quarter as compared to the same quarter a year ago. This was the third consecutive quarter of a triple-digit growth in profits at the net level. Healthy growth in sales and a tight control over expenses pushed up the industrys profits during the quarter.Aggregate net sales of the 82 cotton and blended yarn companies that announced their results for the quarter ended December 2013 grew by 17.3 per cent as compared to that in the year-ago quarter. The industrys sales volumes increased on the back of a consistent demand in both, the domestic and the overseas markets. Sales realisation increased owing to a spike in input prices and rupee depreciation. Thus, higher volumes and improved realisations contributed to the growth in sales.Purchase of cotton and synthetic fibres make up for majority of the raw material cost in yarn manufacturing. During the quarter ended December 2013, prices of cotton rose by a sharp 20-25 per cent on a y-o-y basis. Synthetic yarn prices too remained firm during the quarter. A spike in input prices coupled with a low base in the year-ago quarter pushed up the raw material expenses by 24.6 per cent, much faster than the growth in sales. Its proportion in the net sales expanded by 373 basis points to 63.7 per cent during the quarter.However, the industry was able to keep its other expenses and wage costs under check. These expenses rose by 6.8 per cent and 9.8 per cent, respectively. This helped the industry to partially off-set the rise in raw material expenses. Moreover, the industry piled up inventories worth Rs.1.1 billion as against a liquidation of Rs.138.2 million in the December 2012 quarter. After adjusting for this, the industrys total operating expenses rose by 17 per cent, slower than the growth in sales.Consequently, the industrys operating profit jumped by 19.6 per cent in the December 2013 quarter. This came over a 125.4 per cent growth recorded in the year-ago quarter. The industrys operating profit margin expanded by 24 basis points to 12.3 per cent during the quarter. This was the seventh successive quarter, wherein the industry reported an expansion in its operating profit margin.Among the non-operating expenses, the industrys interest outgo declined by 2.9 per cent y-o-y during the quarter ended December 2013. Total tax provisions of the industry rose by a steep 48.7 per cent. However, its proportion in the before tax earnings contracted by a significant 11.5 per cent to 45.9 per cent during the quarter. All these factors resulted in a 117 basis points expansion in the net profit margin. It stood at 1.95 per cent during the quarter.Net profit of the large-sized companies (quarterly sales revenue more than Rs.five billion) rose by 78.3 per cent during the December 2013 quarter. The segments net profit margin improved by 275 basis points to 9.4 per cent during the quarter. Vardhman Textiles, the largest company in the industry, posted an impressive 109.5 per cent growth in its net profit. Nahar Spinning Mills net profit rose by a robust 47.8 per cent during the quarter. On the contrary, KPR Mills, another large-sized company, reported a decline in its net profit. A sharp rise in raw material expenses and other expenses dragged down the companys profits during the quarter.The small-sized segment, comprising of 56 companies with quarterly sales revenues less than Rs.1 billion, turned around in the December 2013 quarter. As against losses equivalent to 3.2 per cent of total income in the December 2012 quarter, this segment managed to break-even during the quarter. A drop in all the expense heads barring input costs aided this turn around.In a complete contrast to the large-sized and the small-sized segments, mid-sized segment incurred losses in the December 2013 quarter. Aggregate losses of the 24 mid-sized companies (sales revenue between Rs.one billion and Rs.five billion) stood at Rs.775 million during the quarter. The segments loss margin widened to 2.2 per cent of total income during October-December 2013 from 0.5 per cent in the corresponding year ago period.In the mid-sized segment, net profit of the companies such as Maharaja Shree Umaid Mills, Rajapalayam Mills, D C M and Precot Meridian plunged in excess of 40 per cent during the quarter. While, two companies turned loss-making during the quarter, three witnessed an increase in their losses.

Net sales of cotton & blended yarn industry up by 17.3% in December 2013 quarter

Higher volumes and increase in average realisation boost sales growth

The cotton & blended yarn industry witnessed yet another quarter of robust growth in net sales. Aggregate net sales of the 82 cotton and blended yarn companies in our sample grew by 17.3 per cent y-o-y in the December 2013 quarter. The growth in sales was broad-based with 60 companies in the sample reporting higher sales. Of these, more than 75 per cent of the companies reported double-digit growth in sales. A combination of, both, higher volumes and increase in realisations led the growth in sales.During the quarter ended December 2013, demand for Indian fabrics and apparels remained strong in the domestic market. Export demand for apparels also improved on the back of a recovery in the US and the European Union regions. These resulted into higher off-take of yarn from the downstream buyers such as fabric and apparel manufacturers.Besides, outbound shipments of yarn to China also grew at a robust pace during October-December 2013. Owing to high raw cotton prices in the domestic market, restrictions on imports of (low-cost) fibre and increase in labour expenses, cost of yarn production rose significantly in China. As a result, Chinese companies focused more on imports of yarn from India. This pushed up yarn sales volumes during the quarter.Rise in sales volume was evident from the yarn production data released by the Central Statistical Organisation (CSO) for the three months ended December 2013. Total yarn production grew by 5.8 per cent y-o-y to 1.6 million tonnes. Cotton yarn production grew by a smart 8.3 per cent to 967 thousand tonnes. Production of synthetic yarn rose by 2.4 per cent to 651 thousand tonnes during the said period.Yarn prices rose significantly y-o-y in the December 2013 quarter owing to spike in input prices. During October-December 2013, prices of hosiery yarn (20s and 40s) rose in the range of 12-13 per cent in the Tirupur market. Prices of cotton cone yarn and cotton hank yarn rose in the range of 8-11 per cent. In addition to this, a sharp depreciation in the value of the rupee against the dollar helped improve export realisations.Aggregate net sales of the three large-sized companies (quarterly sales turnover greater than Rs.five billion) rose by a strong 26.2 per cent in the December 2013 quarter. Vardhman Textiles, the largest company in the industry, reported a 31 per cent rise in its net sales during the quarter. The growth in sales came from both, yarn as well as fabric division. Net sales of the companys yarn division, accounting for over 70 per cent of the total revenue, grew by 30.5 per cent. Its fabric division posted 45.8 per cent growth in net sales. The company has largely benefited from higher exports of yarn, especially to China. Export earnings account for 40 per cent of its total sales .K P R Mills also reported an impressive 41 per cent growth in its net sales. On the contrary, Nahar Spinning Mills (another large-sized company) reported a modest 5.4 per cent rise in its net sales. This can be attributed to slow growth in its yarn segment revenue.The pack of 23 mid-sized companies (quarterly sales turnover between Rs.1 billion and Rs.5 billion) reported a combined sales growth of 13.8 per cent in the December 2013 quarter as compared to the year-ago quarter. Among the mid-sized companies, 13 companies reported a more than 15 per cent rise in sales revenues. Leading them were TT, Patspin India, GTN Industries and Winsome Textile Industries with a robust sales growth in the range of 40-60 per cent. All these companies witnessed a healthy rise in demand for their yarn during the quarter. This segment contributed around 45 per cent to the industrys total sales during October-December 2013.The small-sized segment, that accounted for 23.5 per cent of the industrys top-line, also reported a healthy 13.6 per cent y-o-y growth in sales in the December 2013 quarter. This segment includes 56 companies having quarterly sales turnover less than Rs.1 billion.

Polyester staple fibre production grows by 5.4% y-o-y in December 2013

Polyester filament yarn output falls yet again

According to the data released by the Office of Textile Commissioner, polyester staple fibre (PSF) production stood at 70.7 thousand tonnes in December 2013 as compared to 67 thousand tonnes in December 2012. This translates into a growth of 5.4 per cent. The growth in production during the month came after two consecutive months of fall in output on a y-o-y basis. Sequentially, the production grew by 3.5 per cent.As against PSF, production of polyester filament yarn (PFY) continued to remain sluggish for the sixteenth successive month in December 2013. PFY output remained almost at the year-ago level of 104.7 thousand tonnes during the month. However, production was up by 9.5 per cent when compared to November 2013.During the three quarters ended December 2013, cumulative production of both PSF and PFY was poor. While output of PSF rose by a tad 0.1 per cent to 638.7 thousand tonnes, that of PFY fell by 7.1 per cent to 926.9 thousand tonnes.Output of viscose staple fibre (VSF) stood at 30.9 thousand tonnes in December 2013, 7.1 per cent higher as compared to December 2012. On a sequential basis, VSF production rose by 3.1 per cent. VSF manufacturers have posted a healthy growth in production on a y-o-y basis since May 2013. Resultantly, the cumulative production of VSF grew by 8.4 per cent to 271.5 thousand tonnes during April-December 2013.Production of viscose filament yarn (VFY) grew by a meagre 2.5 per cent y-o-y in to 3.8 thousand tonnes December 2013. However, on a sequential basis, production rose by a smart 7.7 per cent. Cumulative production of VFY rose by 3.2 per cent to 33 thousand tonnes during the nine months ended December 2013.Acrylic staple fibre (ASF) continued to show a robust growth in production for the ninth month in a row. ASF output grew by 22 per cent y-o-y in December 2013 to 8.3 thousand tonnes. However, the production remained flat when compared to the previous month. Cumulative ASF production during April-December 2013 grew by an impressive 33.9 per cent to 74.7 thousand tonnes.Around 1.9 thousand tonnes of VFY was produced in December 2013, marking a growth of a mere 2.5 per cent. An equivalent growth was recorded even on a sequential basis. Cumulative NFY production grew by just one per cent to 17.3 thousand tonnes during the nine months ended December 2013.

Cotton and blended yarn production to grow by 4.3% in 2014-15

Yarn prices to remain firm during the year

Indias total yarn production grew by a modest 5.7 per cent to 4,303 thousand tonnes during April-November 2013 as compared to the same period a year ago. This was solely driven by a smart growth in output of cotton yarn. Its production grew by 10.6 per cent y-o-y to 2,567 thousand tonnes. On the contrary, synthetic yarn production remained sluggish during the said period.The growth in cotton yarn production during April-November 2013 was backed by a healthy rise in demand from the domestic fabric and apparel manufacturers. A robust demand from overseas markets, especially, China also supported the growth in production. Chinese textile mills, hit by quota restrictions, are increasingly shifting their preference towards imports of yarn rather than raw cotton from India. This along with an improvement in demand from other overseas markets gave a boost to the export demand for yarn. As per media reports, export registrations for cotton yarn during April-November 2013 jumped by 42 per cent to 937.1 million kg from 658.7 million kg in the corresponding period a year ago.We expect the demand for Indian apparels to remain upbeat, both, in the domestic and international markets. This will result in higher off-take of yarn from the down-stream buyers such as fabric and integrated apparel manufacturers. This is likely to drive the growth in output of yarn. Total yarn production is expected to grow by six per cent in 2013-14. Cotton yarn output is likely to grow by a smart 9.3 per cent. Production of synthetic yarn will rise by a tad 1.4 per cent.A strong export demand, higher domestic consumption and increase in raw cotton prices pushed up the yarn prices during April 2013-January 2014. Hosiery yarn prices on an average rose by 10.6 per cent y-o-y during the said period. Prices of cotton cone yarn and cotton hank yarn averaged 4-6 per cent higher during April 2013-January 2014. We expect the prices to remain firm in the coming months as well. In 2013-14 as a whole, prices of cotton and blended yarn are expected to rise in the range of 6-11 per cent.In 2014-15, China is likely to discontinue its cotton stockpiling program. Besides, the country is expected to offload its cotton reserves which is equivalent to more than half of the worlds total cotton stock at concessional rates during the year. This will improve the availability of low-cost cotton in the country, thereby down-sizing cotton and blended yarn imports from India. China accounts for nearly 30 per cent of Indias total yarn exports.However, demand from the US and the European countries is expected to remain healthy. Also, domestic consumption of yarn is likely to see an upswing in the coming years. Higher disposable income and shift in lifestyles are expected to boost demand for fabrics and apparels which in turn is expected to support the growth in yarn production in 2014-15. We expect the cotton yarn production to grow by 9.3 per cent to 3,889.5 thousand tonnes during the year. Output of synthetic yarn is likely to improve as we expect a better domestic demand. It is expected to grow by 1.4 per cent to 2,621 thousand tonnes by March 2015.Globally, the supply for cotton is unlikely to outpace the growth in demand. Besides, auctioning of cotton by China is likely to create a surplus of cotton in the world market. These factors will put a downward pressure on the international cotton prices. Subsequently, cotton yarn prices are also expected to come under pressure. However, a strong domestic demand for cotton and yarn is likely to lend support to the domestic prices.In 2014-15, average price of medium staple cotton is expected to rise by 1.4 per cent in the Abohar market. In the Kadi market, average price of long staple cotton is likely to firm up by 1.8 per cent. Hosiery yarn 40s prices are likely to average 2.2 per cent higher during the year. Average prices of cotton cone yarn and cotton hank yarn are expected to rise by one per cent and 3.1 per cent, respectively.

Indias apparel export to grow by 11.7% in 2014-15

Healthy demand from overseas markets to support the growth in export earnings

The Indian apparel industry witnessed an upswing in outbound shipments on a y-o-y basis since the beginning of the current financial year. Consequently, cumulative apparel export earnings till November 2013 grew by a healthy 15.9 per cent to USD 9.3 billion. The jump in the apparel export earnings in the rupee terms was even higher due to rupee depreciation. It grew by a robust 27.2 per cent to Rs.555.4 billion during April-November 2013.Improved demand from the major destinations like United States and the European countries owing to economic recovery backed the growth in exports. Besides, a sharp depreciation in the value of the Indian rupee against the US dollar during April-November 2013 helped the exporters to get better realisations. We believe, these factors will continue to boost the countrys export earnings in the coming months. Indian apparel exporters are expected to wrap up the year 2013-14 with a healthy 15.1 per cent growth. Ready-made garments worth USD 14.9 billion are expected to be shipped out of the country by March 2014.During the year, exports of cotton based apparels are expected to grow by 10 per cent to USD 9.2 billion. This will be backed by a healthy growth in volumes and higher export realisations. Exports of apparels made from synthetic fibres are expected to grow by a robust 20.2 per cent to USD three billion. Synthetic fibres are often considered as substitutes of cotton fibres. An increasing price difference between cotton and man-made fibres is likely to push up the demand for synthetic apparels. Exports of apparels made from other textile materials like silk, wool etc. are expected to grow by a strong 42.7 per cent to USD 2.8 billion on the back of a robust demand in the global markets.We expect the demand for apparels from the major export destinations to continue to rise in the years ahead. With the economic situation in the United States and the European Union expected to improve further, India is likely to witness more apparel export orders from these regions. In addition to this, apparel exporters from the country are exploring non-traditional markets like Middle-East, Latin America and Africa.At the same time, stiff competition from other apparel exporting countries such as Bangladesh and China is likely come down. China, accounting for over one-third of the worlds total apparel export market, is facing high labour costs. Moreover, strengthening of Yuan against the dollar has reduced the countrys competitive edge.Bangladesh, another major garment manufacturing hub, witnessed two fatal accidents in textile units owing to unsafe working conditions. This raised concerns among global retailers over compliance of labour laws in the country. Besides, the country is expected to revise minimum wage rate upwards in the wake of rising unrest among the textile workers. This is likely to narrow down the gap in the pricing of apparels made in Bangladesh and India. As per media reports, garments made in the domestic market are on an average 20 per cent expensive than that manufactured in Bangladesh.Owing to these, western buyers are expected to divert their garment purchase orders towards Indian apparel exporters. This is expected to push up the export volumes of apparels. However, an expected appreciation in the Indian rupee against the US dollar is expected cap the growth in export realisations. In 2014-15, the Indian rupee is likely to average around 58.5 per dollar as against an expected 60.5 per dollar in 2013-14. The rupee is expected to further appreciate to 57 per dollar in 2015-16.Therefore, we expect Indias apparel export earnings to grow by 11.7 per cent to USD 16.6 billion in 2014-15. Apparels worth USD 18.2 billion are expected to be shipped out of the country during 2015-16. This implies a growth of 9.7 per cent over the previous year.Exports of cotton apparels are expected to grow at a compounded rate of 4.9 per cent during 2014-16. Synthetic apparel exports are also expected to grow by a modest 4.5 per cent per annum during the said period. Apparels made from other textile materials (including silk and wool) will continue to witness a strong demand in the overseas market. Exports of these apparels are expected to grow at a CARG of 15 per cent during the two years ending March 2016.

Indias apparel exports to the US grow by 9.2% y-o-y in December 2013

Thus, the countrys market share improves during the month

As per the data released by the Office of Textiles and Apparel (OTEXA) of the US Department of Commerce, Indias apparel exports to the US had declined in November 2013. However, this was a blip and the countrys apparel exports to the US surged in December 2013. During the month, India exported apparel worth USD 217.3 million, 9.2 per cent higher as compared to the corresponding month a year ago.This was solely a volume driven growth. The country shipped 59.5 million square metres of apparels to the US in December 2013. This translates into a rise of 9.5 per cent as compared to December 2012. With this, Indias share in the US apparel market expanded by 20 basis points to 3.8 per cent. India is currently the sixth largest apparel exporter to the US in terms of value.Baring Indonesia, all the other top-five apparel exporters posted a rise in their earnings during the month. Leading the pack was Vietnam with a 19 per cent growth followed by Mexico with a 11.6 per cent growth. While China (accounting for over one-third of the apparel imports by the US) witnessed a tad 0.6 per cent growth in its export earnings, Bangladesh posted a 3.4 per cent growth in its export revenues. Indonesias apparel exports to the US fell by a sharp 16.6 per cent as compared to the corresponding month a year ago.Although China managed to report a rise in its shipments to the US, the countrys market share eroded in December 2013. It contracted to 36.1 per cent during the month from 37.2 per cent in the same month a year ago. Indonesias market share in the US apparel market shrunk by 130 basis points to 5.4 per cent. While Bangladesh maintained its share at 5.1 per cent on a y-o-y basis, Mexicos market share expanded by 40 basis points to 4.7 per cent. Vietnam gained the most as the countrys share in the US apparel market improved by a 140 basis points to 10.9 per cent in December 2013.During the nine months ended December 2013, Indias apparel exports to the US rose by a healthy 10.7 per cent to USD 2.3 billion during April-December 2013. This was on the back of a 10.4 per cent growth in export volumes. India exported 650.5 million square meters of apparels during the said period. Average export realisation remained unchanged at USD 3.6 per square metre.The countrys share in the US apparel market improved 20 basis points to 3.8 per cent during April-December 2013. Other than India, only Vietnam and Bangladesh reported an improvement in their market share during the aforementioned period. Their market share improved by 100 basis points to 10.2 per cent and 50 basis points to 5.9 per cent, respectively. Chinas market share contracted by 100 basis points to 38.4 per cent.

Investments in cotton & blended yarn industry to remain healthy during 2013-16

Projects worth Rs.54.4 billion to get commissioned

The cotton & blended yarn industry witnessed a commissioning of projects worth Rs.14-18 billion in each of the preceding five year ending March 2013. The momentum in capacity additions is expected to continue during 2013-16. According to CMIEs CapEx database, 10 projects entailing an investment of Rs.10 billion are expected to come on stream during the year 2013-14. These will add a capacity to manufacture 126.8 thousand tonnes per annum (ttpa) of cotton and blended yarn.Project investment in the industry is expected to more than double in the year 2014-15. Nine projects worth Rs.26.8 billion are set to get completed during the year. In 2015-16, so far, two projects worth Rs.17.6 billion are expected to get operational. A total capacity to manufacture 140.2 ttpa of yarn is likely to come up during 2014-16.The largest investment during the three years ending March 2016 will be made by Trident. The company is in the process to expand the manufacturing capacity of its two facilities located at Madhya Pradesh and Punjab with an investment of Rs.28.7 billion. Of this, Rs.16.7 billion will be invested on its plant located at Budhni, Madhya Pradesh. On completion in September 2015, the plants capacity will increase to 176 thousand spindles which will produce 38.8 ttpa of cotton yarn. The company will also set up 500 looms with an annual capacity of 42.3 million metres of fabric.The balance investment of Rs.12 billion will be directed towards its brown-field expansion project at Barnala, Punjab. The company is in the process to raise the plants yarn spinning capacity in a phased manner. In phase-I, which got commissioned in March 2012, the company installed a yarn spindling capacity of 28.3 ttpa and 1,664 rotors. On completion of phase-II in September 2014, a capacity to spindle 26.9 ttpa of cotton yarn and 2,040 rotors are expected to be commissioned.Vertex Spinning is expected to invest Rs.5.1 billion for setting up an integrated mega textile park at Dhule, Maharashtra. This park will have a yarn spindling and twisting capacity of 161 thousand spindles per annum. Besides, 1.5 ttpa of yarn dyeing capacity, 18 million meters of yarn weaving capacity and 20 million meters of fabric processing capacity will be installed. The new facility is expected to get operational by April 2014.Oswal Woollen Mills green-field cotton spinning and fabric manufacturing unit at Pillukedi, Madhya Pradesh will be ready by March 2014. The company will shell out Rs.3.6 billion to set this unit in a phased manner. The company completed phase-I of the project in February 2013 and added a yarn spinning capacity of 3.4 ttpa and denim fabric manufacturing capacity of 80 looms. On completion of the phase-II, another 5.2 ttpa of cotton yarn spinning capacity will be added. The company will also enhance its denim fabric capacity by setting up 24 looms and 864 rotors.Other cotton & blended yarn projects that are scheduled for completion during 2013-16

Company nameProject NameProject Cost (inRs.million)Project LocationCompletion By

Nitin SpinnersBhilwara spinning & knitting expansion project2,860Bhilwara, RajasthanMarch 2015

Nahar Spinning MillsSangrur cotton yarn project2,300Sangrur, PunjabMarch 2014

Winsome Textile Inds.Baddi spinning, circular knitting & yarn dyeing expansion project2,210Solan, Himachal PradeshApril 2014

Suryalakshmi Cotton MillsRamtek ultra modern spinning project1,400Nagpur, MaharashtraMarch 2015

Vraj Integrated Textile ParkBidaj integrated textile park project1,054Kheda, GujaratDecember 2014

D C MHisar cotton spinning expansion project1,050Hisar, HaryanaSeptember 2014

C L C Textile ParkChhindwara integrated textile park project956.5Chhindwara, Madhya PradeshJuly 2015

Lakshmi Mills Co.Kovilpatti cotton yarn expansion project750Thoothukkudi, Tamil NaduSeptember 2014

Mukesh UdyogKohara cotton yarn expansion (II) project680Ludhiana, PunjabMarch 2014

Suryaamba Spinning MillsNayakund cotton yarn expansion project350Nagpur, MaharashtraMay 2014

Healthy capacity additions lined up in cloth industry during 2013-16

Projects worth Rs.24.1 billion to come up

A healthy off-take of apparels from both domestic and overseas market is expected to boost the demand for Indian fabrics in the coming years. In anticipation of the rise in demand, domestic cloth manufacturers have lined up robust capacity additions over the three years ending March 2016.According to CMIEs CapEx database, 15 projects worth Rs.24.1 billion are scheduled to get operational during 2013-16. These projects will add a total cloth manufacturing and processing capacity of 216.2 million metres. Nearly 25 per cent of the incremental capacity has already been added during the April-December 2013 period. [see].Some of the other prominent cloth projects that are expected to be completed during 2013-16 are as follows : Nandan Denims is scheduled to make the largest investment during the three years ending March 2016. The company is expected to spend Rs.8.1 billion towards capacity expansion of its facility at Ahemdebad, Gujarat by January 2015. Under this project, the company will raise its annual denim fabric manufacturing capacity by 52 million meters to 112 million meters. Of this, 22 million meters of capacity has already got commissioned in September 2013. The company is also expected to install a capacity to manufacture 15 million meters of shirting fabric per annum. Etco Industries is setting up a Rs.three billion worth fabric weaving unit at Parbhani, Maharashtra. On completion in November 2014, this green-field unit will have a capacity to weave nine million metres of cloth per annum. GIT Textiles is investing Rs.1.5 billion to set up a new unit at Sanad, Gujarat in a phased manner. In phase-I, which got completed in November 2010, the company installed a capacity to weave 9.1 million meters per annum. In phase-II, the company plans to add an equivalent weaving capacity by March 2016. The project was announced in Vibrant Gujarat Global Investors Summit 2009 and is running behind schedule by almost seven years. The reason behind the delay could not be ascertained. Siyaram Silk Mills in the course to expand the fabric manufacturing capacity of its plants located at Tarapur (Maharashtra) and Silvassa (Dadra & Nagar Haveli) by March 2014. Currently, the total installed capacity at these sites is six million meters of fabric per annum. Under this brown-field capacity expansion project, the company will expand the capacity to eight million meters of fabric per annum. The project will come with an investment outlay of Rs.1.4 billion. Nirbhai Textiles is setting up a new fabric weaving unit at Hedon, Punjab at a cost of Rs.1.3 billion. The plant is scheduled to get commissioned by March 2015 with a capacity to weave 21.8 million meters of cloth per annum.Other cloth projects that are scheduled for completion by March 2016

Company NameProject NameProject Cost (in Rs.million)Project LocationProject TypeCompletion By

Raymond Uco DenimYavatmal denim fabric expansion project1,200Yavatmal, MaharashtraSubstantial ExpansionApril 2014

Nextgen Textile ParkGundoj integrated textile park project1,014Gundoj, RajasthanNew UnitMarch 2014

Jaya Shree TextilesRishra linen fabric expansion (II) project1,000Rishra, West BengalSubstantial ExpansionNovember 2015

Vaigai Hi-tech Weaving ParkAndipatti hi-tech weaving park project610Andipatti, Tamil NaduNew UnitJune 2014

O C M IndiaAmritsar fabric expansion project450Amritsar, PunjabSubstantial ExpansionMarch 2014

Kerala State Textile CorporationPinarayi hi-tech weaving factory project200Pinarayi, KeralaNew UnitApril 2014

Sunglow SuitingsBhilwara synthetic fabrics project200Bhilwara, RajasthanNew UnitMay 2014

Healthy capacity additions lined up in cloth industry during 2013-16

Projects worth Rs.24.1 billion to come up

A healthy off-take of apparels from both domestic and overseas market is expected to boost the demand for Indian fabrics in the coming years. In anticipation of the rise in demand, domestic cloth manufacturers have lined up robust capacity additions over the three years ending March 2016.According to CMIEs CapEx database, 15 projects worth Rs.24.1 billion are scheduled to get operational during 2013-16. These projects will add a total cloth manufacturing and processing capacity of 216.2 million metres. Nearly 25 per cent of the incremental capacity has already been added during the April-December 2013 period. [see].Some of the other prominent cloth projects that are expected to be completed during 2013-16 are as follows : Nandan Denims is scheduled to make the largest investment during the three years ending March 2016. The company is expected to spend Rs.8.1 billion towards capacity expansion of its facility at Ahemdebad, Gujarat by January 2015. Under this project, the company will raise its annual denim fabric manufacturing capacity by 52 million meters to 112 million meters. Of this, 22 million meters of capacity has already got commissioned in September 2013. The company is also expected to install a capacity to manufacture 15 million meters of shirting fabric per annum. Etco Industries is setting up a Rs.three billion worth fabric weaving unit at Parbhani, Maharashtra. On completion in November 2014, this green-field unit will have a capacity to weave nine million metres of cloth per annum. GIT Textiles is investing Rs.1.5 billion to set up a new unit at Sanad, Gujarat in a phased manner. In phase-I, which got completed in November 2010, the company installed a capacity to weave 9.1 million meters per annum. In phase-II, the company plans to add an equivalent weaving capacity by March 2016. The project was announced in Vibrant Gujarat Global Investors Summit 2009 and is running behind schedule by almost seven years. The reason behind the delay could not be ascertained. Siyaram Silk Mills in the course to expand the fabric manufacturing capacity of its plants located at Tarapur (Maharashtra) and Silvassa (Dadra & Nagar Haveli) by March 2014. Currently, the total installed capacity at these sites is six million meters of fabric per annum. Under this brown-field capacity expansion project, the company will expand the capacity to eight million meters of fabric per annum. The project will come with an investment outlay of Rs.1.4 billion. Nirbhai Textiles is setting up a new fabric weaving unit at Hedon, Punjab at a cost of Rs.1.3 billion. The plant is scheduled to get commissioned by March 2015 with a capacity to weave 21.8 million meters of cloth per annum.Other cloth projects that are scheduled for completion by March 2016

Company NameProject NameProject Cost (in Rs.million)Project LocationProject TypeCompletion By

Raymond Uco DenimYavatmal denim fabric expansion project1,200Yavatmal, MaharashtraSubstantial ExpansionApril 2014

Nextgen Textile ParkGundoj integrated textile park project1,014Gundoj, RajasthanNew UnitMarch 2014

Jaya Shree TextilesRishra linen fabric expansion (II) project1,000Rishra, West BengalSubstantial ExpansionNovember 2015

Vaigai Hi-tech Weaving ParkAndipatti hi-tech weaving park project610Andipatti, Tamil NaduNew UnitJune 2014

O C M IndiaAmritsar fabric expansion project450Amritsar, PunjabSubstantial ExpansionMarch 2014

Kerala State Textile CorporationPinarayi hi-tech weaving factory project200Pinarayi, KeralaNew UnitApril 2014

Sunglow SuitingsBhilwara synthetic fabrics project200Bhilwara, RajasthanNew UnitMay 2014

Government restores export incentives on cotton yarn

Industry lauds the move

The Central government has restored the benefits on export of cotton yarn under the Incremental Export Incentivisation Scheme (IEIS). The Directorate General of Foreign Trade (DGFT), on 23 January 2014, issued a notification stating that export of cotton yarn is eligible for benefits under IEIS for the financial year 2013-14. The scheme, introduced at the beginning of the year, was withdrawn on 25 September 2013.Under this scheme, cotton yarn exporters are entitled to receive duty credit worth two per cent of the cotton yarn shipments. Exporters can utilise the credits earned to import inputs duty free. The restoration of IEIS scheme is expected to help the textile mills to increase their cotton yarn export in the current financial year.Industry associations like the Confederation of Indian Textiles Industry (CITI) and Southern India Mills Association (SIMA) have acclaimed the governments move. According to Prem Malik, Chairman of CITI, withdrawal of IEIS had dampened the enthusiasm of cotton yarn exporters and the restoration of these benefits will reflect in the export performance during the remaining part of the year.However, the centres decision to discontinue the eligibility of cotton yarn to get benefits under the Focus Market Scheme (FMS) still stands the same. Under FMS, exporters were able to offset high freight costs existing in the international market. Both CITI and SIMA have requested the government to reconsider its decision of removing benefits on cotton yarn exports under FMS.

Project commissioning in man-made filaments & fibres industry to scale a new high in 2013-14

Investments to remain healthy during 2014-16

The man-made filaments & fibres industry is set to witness a record-high commissioning of projects in 2013-14. Seven projects, entailing an investment of Rs.26.8 billion, are expected to come on stream during the year. These projects will add an annual synthetic filament and fibre manufacturing capacity of 962.7 thousand tonnes. So far, four projects worth Rs.3.1 billion have got completed. The capacity addition by these projects stood at 186.8 thousand tonnes per annum (ttpa).[see].Details of the other projects that are scheduled for completion by the end of March 2014 are as follows:- Grasim Industries is expected to invest Rs.18 billion on setting up a viscose staple fibre (VSF) production unit at Bharuch, Gujarat. This facility will be able to produce 120 thousand tonnes of VSF per annum. D N H Spinners is expanding the manufacturing capacity of its Surangi plant in Silvassa in a phased manner. The company will expand the combined capacity of partially oriented yarn (POY), fully drawn yarn (FDY) and polyester staple fibre (PSF) by 365 ttpa. Annual polyester texturised yarn (PTY) capacity will be raised by 276 thousand tonnes. These capacities will be added at a cost of Rs.5.1 billion. With an investment of Rs.500 million, Baid industries is setting up a new unit to manufacture polyester filament yarn (PFY). The first and the second phase of the project got completed in March 2011 and March 2012, respectively. In these phases, PFY capacity of 6.6 ttpa got commissioned. In the final phase, which is expected to be operational by March 2014, 14.6 ttpa of capacity will be added.According to CMIEs CapEx database, capacity addition activity in the man-made filaments & fibres industry is expected to remain healthy even in the coming two years ending March 2016. Synthetic filament & fibre manufacturing companies are expected to add 400 ttpa and 360 ttpa of capacity during 2014-15 and 2015-16, respectively. These capacities will envisage an aggregate investment of around Rs.26.2 billion.The largest project, in terms of investment, to come up during 2014-16 is by Nakoda. The company is in the process to set up a continuous polymerisation and direct melt spinning unit at Surat, Gujarat by March 2016. On completion, the green-field unit will have a capacity to manufacture 280 thousand tonnes of POY and FDY per annum. Along-with this, the company will set up a state-of-the art research and development facility to develop specialty yarns.The Rs.17.5 billion worth project will aid the company to manufacture the entire range of polyester yarns and cater to the domestic as well as international market. The company plans to fund the project by a mix of internal accruals and long term debt.Lenzing Modi Fibres India, a joint venture between Lenzing (Austria) and Modi Fibres, plans to commission a new VSF manufacturing unit at Panvel, Maharashtra. The company will shell out Rs.8.7 billion for the project and will add a capacity to produce 80 thousand tonnes of VSF per annum. The project got postponed from its initial commissioning date by 58 months due to hurdles in acquiring environmental clearance (EC). The company finally received the EC in January 2013 and the project is now scheduled for completion in December 2015.Reliance Industries is in the process of setting up a new synthetic yarn producing unit at Silvassa, Dadra & Nagar Haveli. The company intends to manufacture 395 ttpa of PFY and 140 ttpa of PTY at this unit. The project is scheduled for completion in May 2014. The company has not yet disclosed the cost involved in the project.Indorama Industries is expected to complete phase-II of its capacity expansion project at Baddi, Himachal Pradesh in December 2014. In this phase, the company will add a capacity to manufacture five ttpa of spandex yarn. Indorama plans to further augment the plants annual capacity by five thousand tonnes in phase-III. However, completion schedule of this phase is unavailable. The company is expected to invest Rs.6 billion on both these phases.

Titan to foray into womens wear, accessories in new expansion driveVarun Sood, ET Bureau Apr 21, 2014, 03.04AM IST

Tags: womens wear| Titan company| Titan| net worth| markets| Insurability| distribution| capital expenditure| brands (Titan, which describes)BANGALORE: Titan Company aims to grow to $5 billion (Rs 30,100 crore) in revenue by 2019 as the gold-to-watches listed unit of the Tata group looks to expand into new segments, including women's wear and accessories.The Bangalore-based company has outlined capital expenditure of Rs 1,000 crore as a part of the five-year plan, said a senior executive. "We aim to grow to 2.5 times our current size, in five years," managing director Bhaskar Bhat told ET in an interview. Titan's revenue for the year ending March 2013 totalled a little over Rs 10,100 crore.

Titan, which describes itself as the country's largest specialty retailer, would also double its presence to 2,000 stores in the country by 2019. The company expects its jewellery division to contribute the most to company's profits while eyewear and perfume sales would record the highest growth in percentage terms in the coming five years. For now, the jewellery division accounts for more than two-thirds of Titan's revenue while eyewear, watches and accessories contribute about 20%. The precision engineering unit brings in the rest."We have been able to read women well," said Bhat, adding the "creating aspirational brands for every segment in a category" is the company's aspiration. "We look at unorganised and underpenetrated markets. Our exploration continues in such spaces including women's wear, accessories and personal lifestyle products in general. For example bags, in which we have made an initial foray, does not have a national brand," Bhat said.Titan's optimistic outlook comes at a time when many companies, planning to expand in Asia's third-largest economy, have been holding back from making investment decisions in the backdrop of what is perceived as policy stasis.Earlier this year, "The India Attractiveness Survey 2014" by consultancy Ernst & Young said that unfriendly business environment and uncertainty ahead of the general election meant that 32% of the 502 global companies did not plan any investments in the country.Titan on its part maintains that it is necessary to make such growth plans, for the initiatives it takes today will help the company see the results in future. "We are in an emerging market; aspirations and populations are growing," Bhat said.The company aims to increase its presence in Africa, West and East Asia although it acknowledges that more than 90 % of its revenue in 2019 would still be from the domestic market. "Africa holds great potential. We are looking at watches and distribution for Africa," said Bhat, observing that the company does not have a plan right now for scaling up its presence in Africa. Related News China chemical plant blast: 10 injured, 7 missing Search on for new FMC chief Mentha oil down 1.1% on sluggish demand Crude oil down 0.1% on weak Asian cues India's paper demand to rise 53% by 2020

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Cotton yarn spinning mills are mulling a response to the fall in Chinese export demand. A serious matter, since mills had significantly raised their capacities in the past three years in response to rising demand from that country, for both cotton and yarn.

Mills added a combined 500,000 spindles in the past five years, anticipating a consistently high demand from China. There certainly was a big jump in 2013 over 2012, from 77 million kg of yarn export to 1,107 mn kg.

However, the Chinese government has cut the reserve price for sale of cotton in the domestic market; it also plans to release more of cotton from its reserves than before. The Chinese currency, the yuan, is also depreciating, making imports costlier.

Also, says a report from the International Cotton Advisory Committee, polyester is becoming cost-competitive in China as compared to cotton.

Kamal Oswal, managing director of Ludhiana-based Nahar Spinning Mills, says exports to China have become sluggish, with demand down 30-40 per cent. His company exports yarn and fibre to China. Slack demand from China, he said, had to be offset by adding new export destinations.

One hope for Indian exporters is the fact that Chinese garment units are considering moving to other places. Hardyal Singh Cheema, managing director of Cheema Spintex, says: High labour cost in China, coupled with the compulsion of using Chinese cotton stock (less competitive than imported cotton for these units) might drive them out of China. Vietnam and Cambodia are more cost-competitive for garment manufacturers, so we are mulling diversifying our export to these countries.This would need a little time, he said, which meant the coming months might be challenging for the Indian textile sector.

Cheema says China is likely to cut on cotton sowing in the coming season, to increase the area under staple crops. This might help revive cotton imports from there. Indian mills, nevertheless, will have to foray into new markets to reduce dependence on China. D K Nair, secretary-general of the Confederation of Indian Textile Industry, said an appreciating rupee and depreciating yuan in recent times made Indian imports more expensive for China. So, theyve started releasing their own cotton stocks; a short-term measure, he added. Owing to Chinas high manufacturing cost, making of yarn and fabric would be unviable in the long run.

Mumbai: Reliance Industries Ltd (RIL) on Tuesday said it had commissioned a new polyester filament yarn facility at Silvassa in Dadra and Nagar Haveli.With the commissioning of this plant, Reliances total capacity of this yarn, including its Malaysian facilities, is now over 1.5 million tonne per annum, the company said in a statement.The entire production from this facility will be sold in both domestic and international markets. RIL has an existing texturizing facility at Silvassa that reduces the packaging and logistics costs. It is the largest producer of polyester fibre and yarn in the world.Shares of RIL declined 0.46% to Rs.948.50 apiece on BSE, while the benchmark S&P BSE Sensex retreated 0.64% to 22,484.93 points.Mukesh Ambani-led Reliance Industries Ltd (RIL) has commissioned its new polyester filament yarn (PFY) unit at Silvassa, capital of the union territory of Dadra and Nagar Haveli, the company said on Tuesday."The entire production from this facility has been successfully placed in the domestic and international markets," RIL said in a release.With this commissioning, RIL's total PFY capacity, including the Malaysian facilities, is in excess of 1.5 million metric tonnes per annum (MMTPA), it added."This expansion further strengthens RIL's position as the world's largest producer of polyester fibre and yarn," the company said."The new PFY plant at Silvassa is the most automated and one of the most environment-friendly plants globally. It is co-located with RIL's existing texturizing facility at Silvassa eliminating the packaging and logistics costs", the release added.The government proposes to implement a revival, reform and restructuring package for the handloom sector to improve the condition of the sector and help access funds.

According to a proposal floated by the Textile Ministry, the much needed relief to the sector is aimed to bring it out of the debt overhang and grow as it is the second largest employment provider next to agriculture. According to ministry officials, low productivity of the handloom sector that employs around 43 lakh handloom weavers on 27-28 lakh handloom household units contribute only about 11% of the total cloth production. This is major weakness of the Indian textile industry and underutilisation of the manpower and skills.

A financial estimate has pegged the cost of the package at approximately Rs 2000 crores and the package will be implemented in six states with major concentration of handloom weavers benefitting almost 20 lakh handloom weavers in the first phase. According to the proposal, four handloom mega clusters at Varanasi (Uttar Pradesh), Siva Sagar (Assam), Virudhunagar (Tamil Nadu and Murshidabad (West Bengal) have been taken for their integrated and holistic development.

The package consists of various schemes and subsidy proposals. Under the package, the ministry proposes to revise the mill gate scheme. The objective of this scheme is to make available all types of yarn at mill gate price to the eligible handloom weavers so as to facilitate regular supply of basic raw materials to the handloom sector. Currently, National Handloom Development Corporation (NHDC) is the implementing agency responsible for facilitating the supply of raw material to all eligible entities like handloom organisations, handloom development centres, exporters, export houses etc. It is proposed to be open up the scheme to include primary weavers society, apex society, Weavers Company for supply to eligible entities and help utilize the full employment potential of the sector

Another proposal under the package is to issue large number of bunker credit cards and loan waiver scheme, provide margin money and interest subvention with credit guarantee. Market strategies include setting up of marketing complexes at 100 strategic locations while master weavers would be linked to markets, export houses and marketing organisations for selling weaver product. The marketing incentive will be shared 50:50 between the centre and the state government.

In order to improve the payment from handloom houses to weavers a corpus of funds for each textile cluster may be set up so that 60% payment to weavers can be made immediately after receipt of goods from weavers along with acknowledgement from the buying houses.

There would be upgrdation and modernisation of Weavers Service Centres, Indian institute of Handloom technologies. Besides large number of weavers are proposed to be bought under social safety net under scheme like health insurance scheme or Mahatma Gandhi Bunkar Bima Yojana. For seamless implementation of the schemes, handloom schemes will be converged with schemes of ministry of rural development and ministry of medium and small industry.No progress on Deccan Infrastructures Akutotapally Textile SEZ Project

No progress is achieved for Deccan Infrastructure & Land Holdings Ltd's Akutotapally Textile SEZ Project. The project is still on hold. Arun Shourie- Company Secretary (CS), shared this information with CMIE's CapEx team. He added that the company will take decision on the project after June 2014.

No update available for Asmeeta Infratechs Bhiwandi Integrated Textile Park Project

No update is available for Asmeeta Infratech Pvt Ltd's Bhiwandi Integrated Textile Park Project. The company did not provide an update on this project when CMIE approached it. No information regarding the progress of the project was available in the public domain.

No update available for GoI, MoTs Ahmadabad Composites Centre of Excellence Project

No update is available for Government of India, Ministry of Textiles Ahmadabad Composites Centre of Excellence Project. CMIE approached the company for a progress update on the project. However, the company did not share any information regarding the progress of the project. No information was available about the project in the public domain.

Jaya Shree Textiles Rishra Linen Fabric Expansion (II) Project still in preliminary stage

Jaya Shree Textiles Ltd's Rishra Linen Fabric Expansion (II) Project is still in preliminary stage. Arup Kumar Roy- Senior Officer, shared this information with CMIE's CapEx team.

Update unavailable for Government of Uttarakhands Jaspur Integrated Textile Park Project

No update is available for Government of Uttarakhand's Jaspur Integrated Textile Park Project. The company did not provide an update on this project when CMIE approached it. No information regarding the progress of the project was available in the public domain.

Acrylic fibre production grows by 30.2% y-o-y in November 2013

Polyester yarn and fibre output slips during the month

According to the data released by the Office of the Textile Commissioner, production of most types of man-made filaments and fibres grew in November 2013 as compared to the same month a year ago. Highest growth in production was recorded by acrylic fibre (AF) manufacturers. AF output grew by a robust 30.2 per cent y-o-y to 8.3 thousand tonnes during the month. This was the eight consecutive month of a double-digit growth in production. However, AF production slipped by 4.1 per cent on a sequential basis.Nylon filament yarn (NFY) production grew by a healthy 12.1 per cent in November 2013. Its output rose to 1.9 thousand tonnes during the month from 1.7 thousand tonnes in the corresponding year-ago month. On a sequential basis, NFY production grew by a mere half per cent.Viscose filament yarn (VFY) production stood at 3.7 thousand tonnes in November 2013 as compared to 3.5 thousand tonnes in November 2012. This implies a growth of 5.2 per cent. However, production fell by 3.7 per cent as compared to October 2013.Production of viscose staple fibre (VSF) was up by 3.9 per cent to 30 thousand tonnes as compared to the year-ago month. When compared to the preceding month, VSF production dipped by 3.3 per cent.In November 2013, output of, both, polyester staple fibre (PSF) and polyester filament yarn (PFY) declined on a y-o-y basis. Their output fell by 2.6 per cent to 68.3 thousand tonnes and 3.1 per cent to 95.3 thousand tonnes, respectively. On a sequential basis, PSF and PFY production fell by 4-6 per cent.

Output of polyester filament yarn drops for fourteenth consecutive month ended October 2013

Production dips by 1.7% y-o-y

As per the data published by the Office of the Textile Commissioner, production of polyester filament yarn (PFY) fell by 7.4 per cent to 100.2 thousand tonnes in October 2013. This was the fourteenth consecutive month of decline in output as compared to a year ago. On a sequential basis, PFY production fell by 1.7 per cent.Output of polyester staple fibre (PSF) too fell during October 2013 on a y-o-y basis. PSF production declined by 1.7 per cent to 72.7 thousand tonnes during the month. However, compared to the preceding month, production grew by a marginal 0.5 per cent.Production of PFY and PSF has been subdued since the beginning of the financial year 2013-14. Resultantly, production of both these polyesters have declined during April-October 2013. While output of PFY output slipped by 8.6 per cent to 725.6 thousand tonnes, that of PSF fell slightly to 499.8 thousand tonnes during the said period.Production of, both, viscose filament yarn (VFY) and viscose staple fibre (VSF) grew by four per cent each to 3.8 thousand tonnes and 31 thousand tonnes, respectively, during October 2013. As compared to September 2013, production of VFY was up by 1.3 per cent and that of VSF grew by 4.7 per cent.Cumulative production of VFY grew by a modest 3.8 per cent to 25.8 thousand tonnes during the first-seven months of 2013-14. Output of VSF grew by a healthy 9.2 per cent to 210.7 thousand tonnes during the above mentioned period.Acrylic staple fibre (ASF) production continued to grow at a robust pace for the seventh consecutive month ended October 2013. Production grew by 32.2 per cent y-o-y to 8.6 thousand tonnes during the month. This was the highest production witnessed by the industry since September 2009. However, ASF production improved by a tad 0.6 per cent as compared to the preceding month. Cumulative ASF production during April-October 2013 grew by a smart 36.3 per cent to 58.1 thousand tonnes.Production of nylon filament yarn (NFY) grew by a mere half per cent to two thousand tonnes in October 2013. This came over a 48.2 per cent growth recorded for the same month a year ago. When compared to September 2013, production of NFY remained flat. Barring June-July 2013, output of NFY was weak in all the months since April 2013. This restricted the cumulative growth in output to 0.3 per cent during the April-October 2013 period.

Government of Gujarat provides in-principal approval to five textile parks

Proposed parks to get benefits under Gujarat Textile Policy 2012

On 3 December 2013, the State Government of Gujarat gave in-principal approval to set up three textile parks and two spinning parks in Gujarat. This approvals are granted under the Gujarat Textile Policy 2012. The proposed parks entail an aggregate investment of Rs.3,380 million and are expected to create 37,000 direct and indirect jobs in the state. Details of the projects are as follows:- Gayatri Cotspin Park plans to set up a textile park in Bharuch, Gujarat. Investment in this project is pegged at Rs.1,000 million Amitara Green Hi-Tech Textiles Park is expected to set up a textile spinning park in Kheda, Gujarat. The company is expected to invest Rs.920 million on this project. D D Spintex Park is also expected to set up a textile spinning park. The companys Rs.820 million worth park is expected to come up at Bharuch, Gujarat. Karanj Textile Park is expected to invest Rs.320 million on setting up a textile park at Surat, Gujarat. Another textile park in Surat will be set up by Palsana Textile Park. This project is expected to come up with an investment outlay of Rs.320 million.The Gujarat Government is also planning to provide financial assistance to all these textile parks under the Gujarat Textile Policy 2012. A total assistance of Rs.660 million will be provided for development of infrastructure of these parks.Under the Gujarat Textile Policy 2012, the government plans to provide financial assistance of Rs.300 million or upto 50 per cent of the project cost, whichever is lower for textile spinning parks. For textile parks, the assistance is capped at the lower of Rs.100 million or 50 per cent of the cost.In addition to this, the proposed parks are eligible to receive other incentives like interest subsidy and refund of value added tax paid.Other than the above mentioned parks, 28 textile units were granted interest subsidy during the meeting. Of these, 16 units were also given concession in value added tax payment. Besides, approvals were granted for setting up of five apparel training centres across the state in-order to ensure a steady supply of trained manpower for the apparel industry.

PFY production falls by 8.6% in September 2013

Thirteenth consecutive fall on y-o-y basis

According to the data released by the Office of the Textile Commissioner, polyester filament yarn (PFY) production fell for the thirteenth successive month on a y-o-y basis. PFY output fell by 8.6 per cent to 102 thousand tonnes in September 2013. On a sequential basis, output fell by 3.4 per cent.In contrast to PFY, polyester staple fibre (PSF) production grew y-o-y in September 2013. Output stood at 72.3 thousand tonnes, 1.5 per cent higher than that manufactured in September 2012. However, it was lower than the production of 74.7 thousand tonnes recorded in the preceding month.Cumulative production of both these polyesters was weak during the first-six months