Spinning their way to recovery

About 6-months ago, the textile processing industry in Gujarat was going through a tough time, grappling with plunging bottom lines caused by contraction in orders. Sluggish demand both on the domestic and export front made it difficult for some SME textile processors in the state to continue their operations, thereby compelling them to shut down temporarily.

However, the scenario has changed of late. Small-scale textile processing units in the state are now receiving several business enquiries, which in turn has made them hopeful of witnessing better days ahead.

Things looking up

With steady orders pouring in, the textile processing sector in Gujarat is witnessing a surge in business volumes by 10-15%. Rise in order books is likely to boost the sagging profit levels of small-scale textile processing units in the state, thereby also enabling them to consolidate their market position.

"Chief export textile markets are showing discernible signs of improvement, which is pushing up the demand for garments, thereby resulting in more consignments for SME textile units in Gujarat. Small textile processing houses in the state, which had to cut down production, are now resuming full capacity utilisation in order to meet the market requirements," said Anuj Kabra, proprietor of Aarti Textiles, a small-sized textile processing unit in Surat.

Inflow of orders is helping SME textile processing units to clear off their piled-up inventory and fill in new stocks.

"During the demand slump, grey cloth inventory began to rise, thereby causing concern among SME textile units. However, with demand once again rising, textile processing units will now be able to dispose off the piled up inventory and create new stock by taking up production in full capacity," said J Atal, proprietor of Raj textiles, a small-sized textile unit in Ahmedabad.

Industry representatives and associations such as Ahmedabad Textile Processors' Association (ATPA) further expect the industry to witness substantial rise in demand for finished goods in the next 3-4 months, which is likely to boost the overall growth of SME textile processing units in Gujarat.

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