Investments Pick Up In Weaving, Processing, RMG, Techtex

Market Intelligence

Investments Pick Up In Weaving, Processing, RMG, Techtex

In the last quarter of 2018, the Department of Industrial Policy & Promotion (DIPP) received 67 proposals related to textile manufacturing. Of this, almost 27% were in yarn and related sectors, 24% was from the apparel sector, and 21% were proposals for technical textile manufacturing. There were nine proposals from the fabric weaving sector (both cotton and manmade), and seven proposals for textile processing. There was one proposal for made-ups manufacturing, and one for ginning. The current projects, if fully implemented, will create sizeable capacities in fabric and RMG. Apparel manufacturing gains further momentum As per the IEMs during October-December, 2018, additional RMG capacity of around 60 million pieces annually could get generated soon. The huge capacity additions happening in apparel manufacturing is generating interest in the weaving and processing sectors too. Weaving, processing generate interest In the quarter from October-December 2018, nine IEMs were received for fabric knitting and weaving units, which would add around 45 million metres of fabric capacity in the industry. Dyeing, printing, processing of fabrics is picking up too, if the IEM statistics are anything to go by. In the last quarter of 2018, proposals were received which if implemented could add at least 280 million metres of processed, dyeing, printed fabric capacity in the industry. Clearly, the industry is moving fast to capture the opportunity created by the RMG sector. Coated fabrics, disposable hygiene products attract investments Investments in technical textiles are gradually picking up, with 14 projects in the pipeline. These include geotextile products, flex printing laminated rolls, FIBC products, coated fabrics and two fairly big projects in disposable hygiene products. GTEX Fabrics is setting up a 16.8 million meter capacity unit for PVC coated fabrics in Gandhinagar, Gujarat. In Uttar Pradesh, RGI Meditech is setting up a unit for manufacturing 40 million pieces of personal hygience products. Myra Hygiene Products, a West Bengal based company, has submitted an IEM for setting up a unit in Karnataka to manufacture 145 million pieces per annum of adult diapers. Some important projects in the pipeline Other large projects that are coming include Arvind Smart's 10.8 million pieces garment capacity in Ahmedabad, Yash Weavers' 19.80 million meter fabric weaving capacity, in Kheda, Gujarat. Yes Dyeing and Printing is setting up a fabric dyeing and printing capacity of 55.30 million meters, in Surat, Gujarat. GM Knitting is setting up a finishing unit of 12 million meters capacity in Palghar, Maharashtra. Gujarat beckons Once again, Gujarat is the preferred investment destination for the textile industry. In the three months under review, 24 projects of a total of 67 projects were announced in Gujarat. Maharashtra attracted eight investors. Madhya Pradesh has seven projects in the pipeline, thanks to its recently announced textile policy. Six investors chose Karnataka. Tamil Nadu is losing its attractiveness, with just three proposals during the quarter. This is in stark contrast to earlier years, when Gujarat, Tamil Nadu and Andhra Pradesh were attracting the most investments. In the three months from October-December 2018, the DIPP received 687 IEMs. Textile industry accounted for 9.75% of the total IEMs.