Textile machinery output stagnant, but exports rise: M Trivedi

While speaking at the 59th Annual General Meeting of the Machinery Manufacturers’ Association (India) on September 27, 2019 at Hotel Trident, Mumbai, TMMA’s ex-Chairman Mehul Trivedi spoke on the production trends in the textile engineering industry.

Trivedi said, “The textile engineering industry has currently estimated an annual installed capacity of Rs 11,000 crore per annum. The total provisional production of textile machinery, parts and accessories during 2018-19 had recorded a nominal decrease of 1 per cent reaching Rs 6,865 crore as against Rs 6,900 crore achieved during the previous year. The decline in production of spinning machinery was responsible for this. In weaving sector, particularly the shuttleless loom category, the growth rate was stagnant due to uncertain situation created by the unfavourable procedures under the ATUF scheme as well as adverse situation in the powerloom sector, arisen with the continuing effects of the introduction of GST. Synthetic filament yarn sector also recorded a marginal increase in production while the processing sector saw a significant increase due to exports. Many of the processing machinery manufacturers did well during the period.”

Overall capacity utilisation in the textile engineering industry decreased from 63 per cent to 62 per cent as compared to the preceding year. The exports during 2018-19 rose to Rs 3,665 crore as against Rs 2,939 crore achieved during 2017-18. The export of textile machinery to developing countries increased during the year. The association is making efforts to help the textile engineering industry increase its exports further.

The total domestic demand for textile machinery during 2018-19 was Rs 13,004 crore of which imported machinery constituted Rs 9,804 crore. Supplies from the domestic machinery industry amounted to Rs 3,200 crore, aggregating 25 per cent of the total demand. The bulk of the demand was met through imports.

He added, “I have mentioned the challenges resulting from the bottlenecks of the ATUF scheme and the collateral blessing for the domestic textile machinery industry. The enlisting process in the scheme of any machinery manufacturer or its dealers was equally difficult for both the Indian and overseas companies in terms of documentation required by the office of the Textile Commissioner. However, the impact on foreign companies was severe due to lengthy processes involved through the government offices of two or more countries. In our estimation, this dampened the imports of textile machinery by 20-30 per cent.”

Measures for growth orientation

TMMA has been representing the industry to the Government to enable changes in the fiscal policy, removal of hurdles faced by the industry and assistance required for improving the technology, production and exports. The Association has put in tireless efforts in approaching Governments for concessions and reliefs for initiating measures to revitalise the industry. TMMA submitted pre and post budget recommendations, suggestions related to GST and inverted duty structures. A number of industry representations on quality control order of Ministry of Steel and pending duty drawback cases of the industry were also highlighted.

In 2011, TMMA conducted an industry study “Vision 2020 Report for sustained growth of Indian textile engineering industry” through Gherzian international textile consultant. The vision document identified technology gaps and suggested remedies to overcome them. It also advised corrections in the government policies, which acted as roadblocks for industry’s growth. The association intends to conduct a similar study this year as well to define the vision and strategies for the growth of the Indian textile engineering industry in the next decade by the year 2030; keeping ‘Industry 4.0’ as the defining phenomenon in the country’s growth and manufacturing industry’s contribution into it.

New foreign trade policy

The Commerce Ministry will soon come out with a new foreign trade policy, which provides guideline and incentives for increasing exports for the next five financial years 2020-25, the validity for the old one will end on March 31, 2020. Recently the DGFT asked for industry’s recommendation on the current foreign trade policy. The association shared its inputs related to the EPCG scheme and export promotion to DGFT and DHI after informing the industry.

Development of high-tech shuttleless loom in India

TMMA had proposed for development of high-speed high-tech shuttle-less rapier loom of international standard through a consortium of 5 manufacturers of shuttle-less loom in the country with technical guidance and support from Central Manufacturing Technology Institute (CMTI), Bangalore under PPP mode with funding from Industry and our sponsoring ministry, the Department of Heavy Industries on a ratio of 20:80.

Common Facility Centre

Under the DHI’s CG Scheme, TMMA (I) joined hands with ‘Surat Engineering Vikas Association’ (SEVA), a premier association of engineering industries in Surat and ‘Sardar Vallabhbhai Patel Education Society’ (SVPES) an engineering college based at Bardoli in Surat, to establish a Common Engineering Facility centre (CEFC) there for textile machinery, and light engineering industry. A section 8 company ‘Science Engineering and Technological Upliftment (SETU) Foundation’ was registered to execute this project.

The SETU Foundation has completed three fiscal years and is able to add satisfactory progress in CEFC. The foundation organised on September 7, 2019 its third AGM that received delegates from industry, academia and the government to witness the progress. In these years they have procured a number of state-of-the-art hardware and software, which are currently placed at the SVPEC campus. They have also accomplished some projects related to prototype development, and component designing from the local industries. Besides, the foundation is also coming out with skill development programs of college students and industrial workforce, based on the curriculum designed with the help of national skill development council.

Capital Goods Sector Skill Council

The Ministry of Heavy Industries & Public Enterprises – Department of Heavy Industry together with Federation of Indian Chambers of Commerce & Industry (FICCI) launched a Capital Goods Sector Skill Council (CGSC) in 2013 under the aegis of National Skill Development Council (NSDC), New Delhi. The objective of the Council was to develop skills of new generation workforce, which would match the expectations of the industry.

Thumar is new Chairman of TMMA

Vallabh S Thumar, Chairman & Managing Director of Weavetech Engineers, Surat has been elected as the Chairman of TMMA for the year 2019-2020. He has been the member of its Executive Council since 2008-2009.

Pratik Bachkaniwala, Managing Director, Palod Himson Machines, Surat has been elected as the First Vice-Chairman of TMMA for the year 2019-2020. He has been the member of its executive council since 2009-2010.

Prashant Mangukia, Director, Yamuna Machine Works has been elected as the Second Vice-Chairman of TMMA for the year 2019-2020. He has been the member of its executive council since 2011-2012. Shailesh Wani, Managing Director, Stovec Industries, Ahmedabad has been elected as the Honorary Treasurer of TMMA for the year 2019-2020. He has been the member of its executive council from 2015-2016.