Indian yarn manufacturers plan forward integration | Textile News India
Home » News » Textile Mills News » Indian Yarn Manufacturers Plan Forward Integration

Indian yarn manufacturers plan forward integration

Share: 
      Newsletter

READ MORE ON Apparel ManufacturingExpansionFabric MillForward IntegrationGovernment SupportIndiaTextile IndustryVertically IntegratedYarns

Yarn manufacturers

                 Image Courtesy: industriall-union.org

After Central Government announced export incentives recently, yarn manufacturers of Tamil Nadu are all set to forward integrate fabrics, and even garments into their value chain, as they have been facing a lot of pressure on account of margins, due to oversupply. Some 25 mills in the state have either installed knitting machines or have gone up to apparel manufacturing, with influence from the export push which included introduction of new products and export target nations to its list of items eligible for support to increase exports after the decline in exports observed as compared to last year’s exports.

The yarn manufacturers are making investments in order to clinch better deals from Indian and foreign buyers, as textiles have been facing a lot of heat due to Chinese import onslaught in India. Srihari Balakrishnan, MD KG Fabriks, said “In Tamil Nadu, the big garment makers are into reverse expansion to set up their own yarn units but the reverse is not happening much because there is a risk of holding inventory without knowing there is a buyer. This Central Government’s incentive has brightened possibilities of forward integration.” KG Fabriks is one of the pioneers who expanded into fabrics and garments 10 years back and are reaping benefits of the decision made. With knitting machines from Taiwan costing around Rs. 15 lakh each, and that from Europe costing Rs. 25 lakh, a textile mill would have to invest somewhere around Rs. 3 crore to upscale its value chain.

Read MoreNandan Denim notes surge in net profit; expansion on cards

Even though Tamil Nadu has a huge yarn manufacturing capacity of 2.25 crore spindles, only a few yarn manufacturers have invested in fabric manufacturing as most of the textile companies have turnovers under Rs. 50 crore, with a very few touching the Rs. 1,000 crore mark.

 

Have some news? Let us know on news@apparelresources.com

Recommended by Apparel Resources

Mohawk partners with Aurora for new line of textile digital printing

Mohawk Fine Papers Inc. and Aurora Specialty Textiles Group, two major US-based manufacturers, have teamed up to announce the launch of a new...

Porcher announces € 50 million expansion

Porcher Industries, a France-based manufacturer of technical textiles and thermoplastic composites, has announced a growth and restructuring programme worth € 50 million. The...

DuPont to close Kevlar production unit in South Carolina (US)

US-based textile products manufacturer, DuPont, is shutting its Kevlar production plant in Berkeley County, South Carolina (US) this June after six years of...

Proposed textile park in Tiruchi, India awaits execution

A textile park proposed to come up at Tiruchi, a south Indian city of Tamil Nadu, is getting delayed due to low interest...

Oxeon AB eyes expansion, invests € 3 million in ±45° technology

Swedish tape weaving technology leader, Oxeon AB, is investing € 3 million to expand its patented ±45° spread tow weaving capacity, a version...

FESPA launches second global Print Census

A global federation of 37 national associations for the screen, digital, and textile printing community, FESPA is launching its second global Print Census with an aim to update its insight into...

Indian Textiles Ministry considers setting up Centre of Excellence in Surat

India’s Ministry of Textiles is giving priority to a proposal sent by Southern Gujarat Chamber of Commerce and Industry (SGCCI) to set up...

Tekboy Tekstil installs SPGPrints’ Javelin digital printer

Tekboy Tekstil, a leading yarn dyeing plant based in Istanbul, Turkey, has installed SPGPrints’ Javelin digital printer to supplement production capacity and meet increased demand for shorter-runs, rapid turnarounds, and...

Australia debuts in carbon fibre production

Australia is now a home to one of the few carbon fibre production plants in the world with the launch of a new...

Indorama releases INVIYA I-400 polymer for textile industry

Indorama Industries has launched INVIYA I-400, the 4th generation polymer of spandex INVIYA, to achieve excellent recovery at finished garments stage. The I-400...