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ANALYSIS
REGULAR FEATURES
COVERSTORY
Yarn Manufacturing Industry in India with Special Focus on Spun Yarn
L. N. Kaushik
President, Indo Rama Textiles Ltd (CLC), Butibori, Nagpur
This article penned by Shri L.N. Kaushik gives a very informative and a broad view of the status of "Yarn Manufacturing Industry in India with special focus on Spun Yarn". He gives an account of the current status and shape of things to come. The article gives a domestic as well as the global market overview and also describes in detail the Home textile-the next big opportunity, spinning mills, government regulations and support, modernisation, favorable factor conditions, manufacturing facility and quality improvement. Mr. Kaushik says "Far East countries like: KOREA, INDONESIA, PHILLIINES, THAILAND etc, do not have any textile base or natural source of raw material. Their textile industry is sinking. As such, they will move either to CHINA or INDIA". "India has to play a vital role of textile leader in this region. Government of India is putting in their best efforts for the overall development of textile as well as apparel sector" he added.
- Indian Fibre and Yarn Products
- Vikram Rao
Director, Madura Garments, Bangalore
Shri Vikram Rao's article elucidates about the potential and prospects for the Domestic and Export markets for Indian Fibre & Yarn products. He elaborates about the key advantages of the Indian industry, challenges for Indian Textile industry and Key success factors for Indian Textile industry in detail. He says that "India and other developing economies are expected to gain on account of their cost competitiveness, supply of raw material and labour availability, which are the key value drivers in competitive international market mitigating competition from other countries". "The Indian industry must visualize the kind of resources and challenges that these estimates are indicating and gear up to face the competition" he added.
FACE 2 FACE
"We are able to stay one step ahead of competition because of our quality and innovative products and continuous developments"
Shamlal Mehta
Managing Director - Valson Polyster Ltd., Mumbai
 Valson Polyester had a small beginning with Powerlooms at Bhiwandi. Subsequently they observed a big potential in the yarn dyeing industry and decided to venture into it. They feel that the introduction of better machinery in complete textiles, will witness a better technology and better quality of fabrics. With a lot of new developments happening in the Spinning Industry, the customer has a wide variety of yarns to choose from.
In an involved discussion Face2Face with TEXTILE REVIEW, Valson Polyester Limited, Managing Director, Shri. Shyamlal Mehta observes that "India is gearing up to produce these new yarns like Fire Retardant Fabrics, UV resistant fabrics, Thermal wear Technical Textiles etc. These are still on the developing stage". "With increased customer needs to have a huge variety of product mix, we have to keep minimum inventory in all the products to reduce the lead time" he added.
The conversation with the chief of Valson Polyester Limited provides an interesting and absorbing reading.
TREXCLUSIVE
- "Vision knows no boundary"
- Mukund Choudhary
Managing Director - Spentex Industries Ltd., New Delhi
In an exclusive interview with the Textile Review Shri Mukund Choudhary, Managing Director- Spentex Industries Ltd says "Opportunity came soon in the form of de-regulation and reform in the textile sector. However, starting from the scratch of raising a green field project was never my conscious choice therefore I took acquisition as a strategy of growth for my company. Yarn was the right choice given its vast market size, momentous growth and enormous potential in this sector with more than 5 decades of family experience in fabric trading, backward integration was a natural recourse". On asking, how he looks at the yarn business both in Indian as well as global context, he replies that "The Indian Economy is witnessing an unprecedented growth of 8.5% GDP. In the post quota regime, I see huge potential in this segment of business both domestic as well as global market". The interview provides an interesting reading about the Spentex- accelerated growth through strategic acquisitions.
ANALYSIS
- Alternative regional approach to agreement on Textile and Clothing
- Majyd Aziz
President - MHG Group of Companies, Karachi
The president of MHG group companies Majyd is Chief Executive of Delta Apparel (Pvt) Ltd. and a Director of several companies. He was nominated as a Director on Karachi Electric Supply Corporation Limited by the Prime Minister of Pakistan and is currently on the Board of Indus Technology Parks Limited- a public private partnership to develop a 50 acre software park. Elected with the highest votes as the President of the powerful Karachi Chamber of Commerce and Industry for the year 2006-07 Majyd is actively involved with several trade, industry, business, educational, cultural and social institutions. Closely connected with the textile trade Majyd shares his vision on the very critical issue of alternative regional approach to agreement on textile and clothing. In his frank assessment of post ATC scenario he rightly predicts the fittest survival.
NEWPROJECTS
A Special Feature on upcoming a new projects in textile sector has been introduced. This section provides information about:
- Sampurna Spinning Mills - implementing the second phase expansion programme at its Neelambur Spinning Mill in Coimbatore district (Tamil Nadu)
- Abdos Polymers - setting up a 3,600 tpa HDPE/HDPP woven fabric processing unit at Shiv Ganga industrial estate, Roorkee in Haridwar district (Uttaranchal).
NEWSSNIPPETS
A regular feature covering news on the topics -Dr. Samrat Mukhopadhyay selected for prestigious Portuguese Foundation for Science and Technology Fellowship, Branded apparel firms tread with caution on expansion trail, Labour woes in Bangla boosts textile export hopes, Fasion: Bling is out, construction is in. Finally, big bucks overshadow gimmickry as bulk orders pour in, Yarn trade faces crisis with demand tapering, Industry asks for uniform 4 % duty on fibre and yarns, Readymade garments to be exempted from textile committee cess, India rivals U.S. cotton exporters for China trade.
STATISTICS
A regular feature deals with the statistics covering:
Export Performance of Synthetic Yarns
Production of Man-Made Filament yarn
Production of Spun Yarn (SSI & Non-SSI)
Installed Capacity of Man-Made Fibre/ Filament Yarn
Domestic Deliveries of Hank Yarn Including SSI Units
Domestic Delivery of Cotton Yarn including SSI Units
Production of Spun Yarn & Fabrics, Exports of Yarns.
TEXTILE STOCKSCAN
Under the regular column, experts Dilip and Rushik Bhatt discusses about - Indo Rama Synthetics (India) Limited (IRSIL). The company was incorporated by Mr. M.L. Lohia and A.P. Lohia in April 1986. IRSIL belongs to "Indo Rama" group which is focused on textile, polyesters and industrial chemicals in Indonesia, Thailand, USA, Nepal, Srilanka and India. In 1995 IRSIL set up an integrated manufacturing unit at Butibori, Maharashtra to produce Polyester Staple Fibre, Polyester Filament Yarn, Draw Textured Yarn and Textile grade Chips. IRSIL already exports to US, Germany, France, Belgium etc. and also is targeting new areas in Latin America, Argentina, Columbia and Venezuela. Being the part of multinational group, IRSIL has strategic and technical alliances with various multinationals. Coming to the financials IRISL has shown weak performance during second quarter of F'06-07. Through areas of expenses, depreciation and interest paid have performed optimistically during the last three consecutive quarters; continuous downtrend in sales figure has depressed the net earning. Continuous efforts from the management for expansion plans and enhancement in production capacity with focussed quality & cost will certainly show a positive effect in long run so it is suggested to HOLD for the Stock.
Banswara Syntex Limited (BSL) an IS/ISO 9001:2000 certified company was incorporated and promoted by Mr. R.L. Toshniwal jointly with Rajasthan State Industrial Development & Investment Corporation Ltd (RIICO) at Banswara, Rajasthan in 1976. Later on the entire stake of RICCO in Banswara Syntex was bought back by Mr. R.L. Toshniwal who is currently the CMD of the company. Expansion, diversification and modernisation are part of the management the dynamic strategy followed by the company which is having an experience of more than four decades in textile industry. BSL today exports fabric in international market with its own name "BANTEX". BSL uses its own yarn and fabric for weaving and garmenting. Currently BSL is working at the capacity of 91952 ring spindles and 576 air jet spindles, 143 looms, 5 stenters and produces 75,000 pieces of readymade garments per month.
Coming to the financials BSL has shown tremendous performance during second quarter of FY'07, the sale figures went up by 33.15% YOY and 23.55% QoQ where as profit margin has jumped by 255.52% YoY and 41.45% QoQ. Profit figures jumped due to sales appreciation which is again the positive factor in short term as well as long run. The advice from the analysts reads-"The stock is trading at Rs. 84.25 at current market price we maintain "BUY" at current levels targeting Rs. 90 and Rs.108 with strong support at Rs. 78".
A regular monthly feature giving 52 week high / low and previous as well as current mid month quotation of around 40 textile companies with market cap in excess of Rs. 100 crore.
EXPORT TRADEINQUIRY
A regular feature.
CAREEROPPORTUNITIES
Career Opportunities - a profile of The Sarvajanik College of Engineering and Technology, Surat, Gujarat.
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