Tamil Nadu's textile industry, which historically held a dominant position, is facing a threat to its competitive edge due to the attractive textile policies of other states such as Gujarat, Maharashtra, and Madhya Pradesh.

The Southern India Mills’ Association (SIMA) has underscored this concern, advocating for policy initiatives to maintain Tamil Nadu's status as the leading state in textiles and clothing manufacturing.

In response to SIMA's recommendations, the Tamil Nadu government, under the leadership of Chief Minister Thiru M.K. Stalin, has announced measures in the state budget to bolster the textile sector.

Notably, a 6 per cent interest subsidy for modernizing the spinning segment, with a budget allocation of Rs 500 crores, has been introduced to address the crisis facing the aging spinning machinery. This move aims to reduce capital costs and incentivize modernization efforts.

Additionally, the government has increased the special capacity subsidy for technical textiles and manufacturing from recycled products from 15 per cent to 25 per cent, recognizing their significance as future growth drivers and in meeting global demand.

Furthermore, significant budget allocations for various textile-related projects across different districts, such as employment generation initiatives and infrastructure development, are expected to enhance competitiveness and attract investments, particularly in rural areas.

The budget also includes provisions for promoting renewable energy, international skill development centers, and initiatives to boost entrepreneurship and export opportunities through a global startup summit. These measures align with global sustainability goals and aim to position Tamil Nadu as an attractive destination for investors and entrepreneurs.

Overall, the state budget reflects a concerted effort to revitalize Tamil Nadu's textile industry, address challenges, and capitalize on emerging opportunities to sustain its leadership position in the sector.

Dharki, a luxury handloom textile brand hailing from Varanasi, has expanded its retail presence to Mumbai's renowned store, Mélange. The brainchild of designer Brijesh Gupta, Dharki seamlessly integrates tradition with a contemporary design philosophy. Collaborating with skilled artisans from West Bengal and Madhya Pradesh, the brand specializes in crafting a diverse range of saris, adhanas, and dupattas.

The latest collection from Dharki introduces patterns and textures through traditional jacquard weaving techniques, marking a departure from conventional designs, as highlighted by Gupta. The brand's ethos revolves around striking a harmonious balance between heritage and innovation.

Spearheaded by Sangita Sinh Kathiwada, the owner of Mélange, the decision to retail Dharki's creations from the iconic Mumbai store is aimed at broadening the brand's reach. The store itself has undergone a revamp to align with Dharki's identity, featuring interiors inspired by the architectural splendor of central Indian havelis. The color palette, comprising taupe, Indian rose, and chalk, enhances the overall aesthetic appeal.

Gupta emphasizes presenting traditional designs requires a delicate equilibrium between preserving heritage and embracing innovation. He suggests that brands can infuse a bold, modern edge into their designs by enlarging or abstracting traditional elements. Additionally, employing a muted or unconventional color palette can contemporize designs, rendering them more relevant to current trends and tastes.

Reversing a loss from the previous year, textile and realty company Bombay Dyeing reported a surprise profit in the third quarter. This turnaround was primarily fueled by a one-time gain from a land sale and significant cost reductions.

The company recorded a consolidated net profit of Rs 30.54 billion as against a loss of Rs 1.01 billion it recorded last year. It expenses reduced by 39.4 per cent to 4.06 billion during the year. However, the company’s revenues from the Polyester segment declined by 11 per cent, leading to a 43.4 per cent drop in overall revenue from operations.

The Rs 38.81 billion one-time gain from land sale to Goisu Realty provided a significant boost to the company's bottom line. However, the company’s core business is still struggling, as evidenced by the decline in revenue from the polyester segment.

22 December 2023, Mumbai

In a decisive move, the state government has established a committee, led by Public Works Minister Dada Bhuse, to delve into the challenges plaguing the power loom industry.
The study group, featuring MLAs Rais Shaikh, Anil Babar, Pravin Datke, Subhash Deshmukh, and Prakash Awade, is tasked with scrutinizing power loom centers in key areas like Bhiwandi, Malegaon, and Ichalkaranji, with a report due in a month.

Nuances
The initiative comes on the heels of legislator Rais Shaikh's impassioned plea in the Legislative Assembly, addressing the industry's struggles.
State Textile Minister Chandrakant Patil promptly responded by announcing the formation of the study group. Shaikh, hailing the swift government action, expressed optimism about justice for the power loom sector.
Encouraging stakeholders to voice their concerns, Shaikh anticipates a transformative impact as the committee plans to compile a comprehensive report on issues and propose measures to fortify the power loom industry statewide.

Latest Textile Events

Birla Cellulose, a trailblazer in sustainable fiber solutions, orchestrated a pivotal hub-meet at The Residency in Karur, spotlighting the revolutionary potential of sustainable Man-Made Cellulosic Fibers (MMCF) within the Home Textiles sector. Attended by 175 influential exporters and company owners from the Karur cluster, the event sought to catalyze sustainable innovation in the industry.
At the core of the discussions was the deployment of sustainable MMCF solutions in the Home Textiles arena, providing a pathway to eco-friendly, high-quality products aligning with contemporary consumer preferences for sustainability. Esteemed value chain partners like AGT Mills, PKPN, Kumaran, and Ultimax actively participated, demonstrating a collective commitment to propel sustainable practices across the textile ecosystem.
Distinguished guests, including K. G. Prithvi and S. Gowrisankar, along with industry stalwarts Perumal and Kaliappan, graced the event, endorsing Birla Cellulose's initiative to guide the industry towards adopting the MMCF range. Industry leaders expressed enthusiasm for integrating Birla Cellulose's fibres into their regular product offerings, marking the commencement of an incubation process for sustainable and economical substitutes.
The spotlight was on Birla Cellulose's innovative Spunshades, featuring Color Lock Technology that prevents fabric fading even after multiple washes. The positive response from industry leaders and exporters reflects a promising trajectory for Birla Cellulose's transformative and responsible innovations, as articulated by Sheerish Kumar, Senior Vice-President of Business Development for Home Textiles at Birla Cellulose.

Garware Technical Fibres, a prominent player in the technical textiles sector, announced its unaudited financial performance for the quarter and nine months ending December 31, 2023.

In Q3 FY24, the company showcased resilience amid challenging international logistics, reporting a 5 per cent surge in net sales to Rs. 289.4 Cr compared to Rs. 274.6 Cr in Q3 FY23.

Profits before tax witnessed a notable 18 per cent uptick to Rs. 55.0 Cr from Rs. 46.6 Cr in the corresponding period last year. Likewise, net profit after tax soared by 18 per cent to Rs. 43.3 Cr, and earnings per share (EPS) stood at Rs. 21.23, marking a substantial 20 per cent growth.

For the nine-month period of FY24, despite a marginal 1 per cent decline in net sales to Rs. 943.3 Cr, the company demonstrated robust financial performance. Profit before tax surged impressively by 25 per cent to Rs. 180.2 Cr, with net profit after tax escalating by 23 per cent to Rs. 138.7 Cr. EPS for 9M FY24 reached Rs. 68.07, reflecting a commendable 25 per cent growth compared to the same period last year.

Vayu Garware, CMD of Garware Technical Fibres, attributed the Q3 success to a remarkable 18 per cent growth over the previous year, highlighting the buoyancy in the Geosynthetics segment.

Despite logistical hurdles, strong margins across all businesses bode well for the upcoming quarter. However, challenges in accessing materials due to Red Sea disruptions could pose a hindrance, particularly in serving European and South American markets.

20 December 2023, Mumbai

Lenzing Group, a global leader in wood-based specialty fibers, recently orchestrated 'The Lenzing Conclave' in Ahmedabad, a renowned textile hub.

Emphasizing Lenzing's enduring commitment to innovation and responsible manufacturing, the event provided a pivotal platform for industry stakeholders to discuss sustainable textile advancements and future opportunities.

Outlines

The conclave spotlighted Lenzing's latest innovations under TENCEL and LENZING ECOVERO fiber brands, with a particular focus on products blending TENCEL fibers and cotton tailored for the Indian market.

Ahmedabad's fabric mills and traders, stalwart consumers of Lenzing fibers, have significantly influenced end fabrics in fashion, denim, home textiles, and intimate wear, gaining traction both domestically and in export markets.

Demonstrability

The exhibition showcased Lenzing's cutting-edge developments across major segments, offering a hands-on experience for participants to explore the versatility and quality of Lenzing fibers. Avinash Mane, Senior Commercial Director of AMEA & NEA region, Textiles Business, Lenzing Group, hailed the conclave's success in fostering collaboration, innovation, and sustainable practices.

The event affirmed Lenzing's role as a trusted partner in Ahmedabad's textile industry, contributing to the creation of high-quality, sustainable fabrics for global markets.

Latest Textile Events

In a virtual meeting, key associations representing spinning mills in Southern India, including SIMA, TASMA, SISPA, ISMA, RTF, RSF, APTMA, and TSTMA, discussed strategies to address the severe financial crisis plaguing the region's textile industry. The Southern States, comprising Tamil Nadu, Andhra Pradesh, and Telangana, which contribute to 55% of the nation's spinning capacity, have been grappling with an 18-month recession exacerbated by global economic slowdown, domestic market sluggishness, and import-related challenges.
The industry has witnessed a sharp decline in cotton yarn exports, plummeting by 56% from April to September 2023 compared to the previous fiscal year. Contributing to the woes are increased power costs, up to Rs.2.50 per unit, making Southern States less competitive globally. Unlike other states like Maharashtra and Gujarat, which offer substantial incentives, the Southern textile industry faces volatility in cotton prices, surplus production capacity, and reduced exports.
The ongoing Ukraine-Russia conflict, Israel-Hamas war, and issues related to Man-Made Fiber Quality Control Order have further strained the financial health of spinning mills nationwide, particularly in the South. Adding to the predicament is an abnormal surge in imports, with a notable increase in cotton and viscose fiber, cotton and polyester yarn, polyester fabrics, garments, and made-ups from China, Bangladesh, Vietnam, and Sri Lanka.
In response, Dr. S. K. Sundararaman, Chairman of SIMA, issued a press release outlining urgent appeals. These include requests to the Chief Ministers of Tamil Nadu, Andhra Pradesh, and Telangana to roll back recent power tariff hikes for a year, and to the Prime Minister for a one-year moratorium on loan repayments, conversion of ECLGS loans, financial assistance for working capital, removal of the 11% cotton import duty, and addressing QCO-related issues.
The associations also urged all state governments to suspend incentives for spinning capacity expansion until oversupply issues are resolved. To emphasize their plight, they proposed a one-week production stoppage and advised a 35% reduction in production across the spinning sector. The crisis, if unaddressed, could lead to the closure of large-scale spinning mills in the region.

20 December 2023, Mumbai

India's newly-elected president of the International Textile Manufacturers Federation (ITMF), K.V. Srinivasan, sees a significant opening for the country in the global textile market.

With international buyers seeking alternatives to China, India has a prime opportunity. However, global demand slumps and rising inflation pose challenges.

Granularity

Srinivasan notes surprising domestic textile demand lows, even during festivals, emphasizing room for Indian industry competitiveness improvement.

The Southern India Mills' Association (SIMA) recently felicitated Srinivasan, with ITMF Director General Christian P. Schindler highlighting global industry dynamics in a virtual presentation.

Key takeaways:

• Shifting global demand presents a golden opportunity for India's textiles.
• Domestic competitiveness and internal demand need urgent improvement.
• ITMF offers a platform for India to voice concerns and share best practices.
• Innovation and sustainability are key to long-term success.

Latest Textile Events

International Conference on “Sustainability and Circularity – The New Challenges for the Textile Value Chain.”
The conference will be held on Wednesday, January 31, 2024, at The Lalit Mumbai hotel in Mumbai, India.
The textile industry is one of the largest and most important industries in the world, but it also faces a number of challenges, including sustainability and circularity.
This conference will bring together experts from around the world to discuss the latest trends and developments in sustainable and circular textile production.
The conference will also feature keynote speeches from leading industry figures, as well as panel discussions and networking opportunities.
The Textile Association (India), Mumbai Unit, is a leading textile industry organization with over 4,000 members. The association is committed to promoting sustainable and circular practices in the textile industry.