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


READ MORE ON Apparel ManufacturingExpansionFabric MillForward IntegrationGovernment SupportIndiaTextile IndustryVertically IntegratedYarns

Yarn manufacturers

                 Image Courtesy:

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

Comments are closed.

Recommended by Apparel Resources

India’s textile hub Tirupur to become ‘smart city’

Good news came in for India’s textile hub Tirupur (Tamil Nadu) when it found itself on the list of 30 new cities that...

Noman Group to shorten ‘lead time’ with new setups

‘Lead time’ is a major factor upon which a buyer decides to work with any apparel manufacturer, and a shorter lead time is...

APTMA to hold convention of textile associations

The All Pakistan Textile Mills Association (APTMA) has announced to hold a convention of all textile industry associations in Islamabad after Eid. "We...

Textile traders in Gujarat (India) threaten strike against GST

Angry over the Indian Government’s decision to levy Goods and Service Tax (GST) on fabrics, textile traders in Gujarat have threatened to go...

Pakistan textile mill owners, workers hold protest

Upset over Pakistan’s Federal Government’s failure to meet demands aimed at reviving the viability of the industry, textile mill owners and workers observed...

Noman Group to expand its yarn capacity

The first textile and garment manufacturing company of Bangladesh to cross the US $ 1 billion mark in exports in FY ’12-13, Noman...

Indian Textiles Ministry reviews industry’s preparation for GST

India’s Textiles Minister Smriti Irani chaired a high-level workshop in New Delhi to review the industry’s readiness for GST, set to be rolled...

Jute can be used for road construction: IRC

Indian Roads Congress (IRC) – the apex body of highway engineers in the country, has recognized certain patterns of jute as geo-textile which...

ICCI wants early redressal of issues in Pakistan’s textile industry

The Islamabad Chamber of Commerce and Industry (ICCI) has urged Pakistan Government to pay attention for early redressal of issues being faced by...

GST won’t affect textile industry: ICRA

Textile industry is likely to remain unaffected post GST implementation compared to the current tax regime. This has been stated in a report...