News: Foreign fabric cos plan local tie-ups to set up Indian shop
(TNN 30/03/2006) Mumbai - After readymade garments, India is all set to give China a run for its money in its traditional forte, fabrics. A number of foreign fabric manufacturers are entering into partnerships with Indian companies and looking at setting up units here, as they find it more cost-effective to supply garment manufacturers in India than importing the fabrics.
Banswara Syntex, a manufacturer of synthetic yarns, has announced a 50:50 JV with European fabrics-maker, Carreman Michel Thierry, to set up a plant in Rajasthan for weaving and exporting high-value lycra-based designer fabrics. Raymond recently spun off its denim business into a separate 50:50 JV with UCO NV of Belgium, giving the company entry into India.
Tessitura Monti India, a subsidiary of the Italian Gruppo Tessile Monti SPA, which manufactures dyed yarn and fine count premium shirting fabric for Italy, Europe and the US, already has a plant in Kolhapur with processing and finishing facilities. More companies, including Gangotri Textiles, are expected to announce joint ventures.
This year’s Budget has also given a major boost to the fabrics industry by reducing the excise duty on all man-made fibre yarns and filament yarn from 16% to 8% and the import duty on raw materials from 15% to 10%.
According to industry estimates, manufacturing fabric in India offers a margin of at least $1 per metre, compared to Europe. These companies are not looking for volume production in India, as is the case with China. This is an incentive to set up operations in India.
Exports of fabrics, fibres and made-ups have risen progressively from $6,470m in ’02-03 to $8,015m in ’04-05, according to the Federation of All India Textile Manufacturers Association.
According to Premal Udani, president, Clothing Manufacturers Association of India (CMAI), that is co-organising the upcoming the Intex Fabrics and Accessories Show, “India can become the gateway to international companies for the high-potential South Asian markets including India, Pakistan, Sri Lanka, Bangladesh, Mauritius and Nepal.”
The production of fabrics in India is expected to go up to 47,000m square metres in ’05-06 from 44,991m square metres in ’04-05. India’s imports of fabrics, fibres and made-ups are not likely to increase drastically.
Banswara Syntex, a manufacturer of synthetic yarns, has announced a 50:50 JV with European fabrics-maker, Carreman Michel Thierry, to set up a plant in Rajasthan for weaving and exporting high-value lycra-based designer fabrics. Raymond recently spun off its denim business into a separate 50:50 JV with UCO NV of Belgium, giving the company entry into India.
Tessitura Monti India, a subsidiary of the Italian Gruppo Tessile Monti SPA, which manufactures dyed yarn and fine count premium shirting fabric for Italy, Europe and the US, already has a plant in Kolhapur with processing and finishing facilities. More companies, including Gangotri Textiles, are expected to announce joint ventures.
This year’s Budget has also given a major boost to the fabrics industry by reducing the excise duty on all man-made fibre yarns and filament yarn from 16% to 8% and the import duty on raw materials from 15% to 10%.
According to industry estimates, manufacturing fabric in India offers a margin of at least $1 per metre, compared to Europe. These companies are not looking for volume production in India, as is the case with China. This is an incentive to set up operations in India.
Exports of fabrics, fibres and made-ups have risen progressively from $6,470m in ’02-03 to $8,015m in ’04-05, according to the Federation of All India Textile Manufacturers Association.
According to Premal Udani, president, Clothing Manufacturers Association of India (CMAI), that is co-organising the upcoming the Intex Fabrics and Accessories Show, “India can become the gateway to international companies for the high-potential South Asian markets including India, Pakistan, Sri Lanka, Bangladesh, Mauritius and Nepal.”
The production of fabrics in India is expected to go up to 47,000m square metres in ’05-06 from 44,991m square metres in ’04-05. India’s imports of fabrics, fibres and made-ups are not likely to increase drastically.
posted by InCar Group Press Room at 00:04
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