Business Standard, India
BS Reporter / Chennai/ Bangalore June 3, 2014, 4:14 IST
After the rising Rupee hit the Indian textile industry, it is now inflation and the rising input costs that are haunting the industry that is facing stiff competition from conutries like China, Vietnam, Combodia and Sri Lanka.
“The biggest challenge for the industry is cost. While the soaring oil prices is a global phenomenon, prices of all inputs including coal are shooting up. This has put a lot of pressure on the industry,” said Nitin Mandhana, vice chairman and managing director, Indus Fila at a press conference in Bangalore on Monday.
“Coal prices in India have doubled in the last one year. Labour is also getting very expensive. Hence we are losing out on cost advantage. To retain the edge in the global market, we have to create a value for ourselves in terms of manufacturing efficiency and development,” he said.
Mandhana also felt that the industry, which faced a severe blow from the rising Rupee, should no longer remain vulnerable to rupee fluctuations. “We should learn to keep risks associated with foreign exchange at bay,” he added.
With situations improving on the rupee front, it is sunrise period for the industry all over again, he said. India has good design capabilities and managerial efficiency in textiles.
In terms of cotton production, India has already overtaken the US, and is on a par with China, noted Atul Ujagar, Country Director, Nike India, Sri Lanka and Pakistan. India’s total textile exports amount to about $30 billion per year.
Of this, readymade garments constitute only $8-9 billion. “This is very less in comparison with China which exports $350-500 billion worth of apparel,” he observed. India should give a thrust to the textile industry by ensuring quality infrastructure and technology, he said.
