Gujarat spinning mills may get a Rs 35 billion boost

Gujarat spinning mills may get a Rs 35 billion boost

Estimates of Spinners Association Gujarat (SAG) suggest that an investment of Rs 35 billion is on the cards over the next year and a half.

Ahmedabad

Estimates of Spinners Association Gujarat (SAG) suggest that an investment of Rs 35 billion is on the cards over the next year and a half.

Riding on good revenues of the past two years and higher profit margins, spinners across Gujarat are bullish about augmenting manufacturing capacities for cotton yarn. 7 lakh new spindles will be added in Gujarat to boost the spinning capacity in the state. Unprecedented profit margins were recorded last year. Therefore, many of these spinning mills have planned expansion.

Gujarat is home to about 110 spinning mills with an installed capacity of 45 lakh spindles. Most of these mills were set up only after the Textile Policy of 2012 was implemented, rolling out incentives for yarn makers. Bharat Boghara, the chairman of SAG, said that, by 2017, the state saw new mills coming up, and over the past five years, spinners have made huge profits riding on exports as well as on domestic demand. He went on to say that new investments will strengthen their position in the textile sector. After the Covid-19 lockdown, the demand for cotton yarn significantly grew as manufacturers in the US and Europe changed their sourcing norms, moving away from China.

The exports of India’s cotton yarn, fabrics, and made-ups increased by 55% to USD 15,297 million in 2021-22. Industry experts said that India’s cotton yarn and fabric exports will continue to rise strongly as the sector enjoys duty-free access to markets in Australia and the UAE. A free trade agreement (FTA) between India and the UK is also on the cards.

Source: The Times Of India

Image Source: Google Images

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