Uttar Pradesh-based GHCL, a leader in home furnishings, plans capacity addition and wants to move focus from exports to the burgeoning home textiles market even as textile manufacturers continue protests over GST. Since the GST was rolled out on July 1, the textile sector has been demanding that the rates and rules be eased for it.
The industry and especially the powerloom segment has not been placated by a Textile Ministry notification that only job workers or units with an annual turnover of Rs 20 lakh or more would need to register for the GST. However, amids the din, GHCL has confirmed plans to solidify its presence in the domestic home furnishings market. Currently, an overwhelming 85 per cent of its products are exported abroad, mostly to the US while the rest are sent to domestic market. But stagnancy in foreign sales growth, booming demand from domestic consumers will change the model, RS Jalan, Managing Director, said.
India accounts for 7 per cent of global home textiles trade. The country has cornered a majority share of the export market in the US and Britain, contributing two-thirds to their exports. India’s home textile industry is expected to expand at a compound annual rate of 8.3 per cent during 2014-21 to $8.2 billion in 2021 from $4.7 billion in 2014, according to the India Brand Equity Foundation.