P Nataraj, MD, KPR Mill Limited, spoke to the Editor of The Indian Textile Journal, on cotton issues.
What will be the impact of Chinas decision on your companys plans? Will this affect your expansion schemes?
This will have no impact on our plans and our expansion schemes. KPR is a vertically integrated apparel manufacturing company producing yarn, fabric and readymade garments. Entire segments of textile is heading towards growth promising bright future. Major importing countries are bouncing back. Competing neighbour countries are losing their competitiveness due to various factors. The demand for textile products both at domestic as well as international will remain. Though Chinas off-take has slowed down, the growing demand from other countries shall make good the impact.
How do you plan to tackle the situation with your strategies?
Our key strengths detailed below shall tackle any such situation. In fact, KPR excelled even during the tough times.
- Vertically integrated operations
- Superior quality products
- Strategic location, near Asias largest apparel manufacturing cluster Tirupur
- Advanced technology machinery and state-of-the-art plant
- Internationally accredited processes
- Trusted client base, both national and international
- Strategic procurement of the best quality cotton facilitating smooth production plan besides high quality products.
- Total self sufficiency in meeting power needs through green power generation by windmills and Co-Gen that economise energy cost
- Enterprising management team with rich experience in textile and apparel industry
What do you think the Indian government should do at this turn of events?
Stable policy frame work, promotion of technology up-gradation, lower interest regime, expediting FTA and above all boosting economic growth better infrastructures are the desired factors.
Your comments on the present global cotton & yarn scenario and future expectations of the Indian industry as a whole.
Indian textile industry, one of the oldest, largest and significant industrial sectors, is in a strong position now than past few decades. Industrial growth for textile is now accelerated to 9-10 percent annually with large contribution to GDP, employment, industrial output and exports. With 15-20 percent growth in export at 2013-14, the industry is expected to touch $220 billion by 2020.
Positive signs are – Europe is bouncing back; US is returning to its previous healthy status; with China reeling under higher cost of production and Bangladesh loosing its grip on the market for garment due to internal troubles, India is poised for further growth. Rupee is settling at a range helping to regain competitive advantage. Population vis-a-vis consumption growth, changing lifestyle, rising income, demand for quality products are fuelling the demand for apparels. The increase in competitiveness has been in areas like technology up-gradation, manufacturing costs and exports. India is now one among the top three apparel export nations to key US market. It is for the industry which is second largest producer of cotton as well as yarn to seize the moment to become a giant of the global market for which continuous modernisation; innovation and value addition; and governments supportive measures are imperative.
Yarn
Indian spinners have specialised in producing excellent quality yarn and are highly competitive globally. Though addition of spinning capacity in 2013 was marginal, cotton yarn production increased by more than 11 per cent over previous year (3,847 mi