Textile Industry Going Forward
The new textile policy of Indian Government has an ambitious target of achieving 20 per cent share of the global textile trade and helping the domestic industry attain a size of $650 billion by 2024-25 by focussing on investments, skill development and labour law reforms. The policy blueprint, termed as the ‘Vision, Strategy and Action Plan’ for the textiles and apparel industry, lays thrust upon diversification of exports through new products and markets along with increasing value addition and promoting innovation and R&D activities.
The industry is expected to attract investment of about $120 billion by 2024-25 and create about 35 million additional jobs in the process. Exports are also expected to rise from the current $39 billion to $300 billion by 2024-25. The action plan notes that attracting the required investment entails ready availability of developed land with adequate infrastructure, skilled manpower and easy connectivity to ports, along with creation of new mega textile parks, lowering the cost of production and logistics, encouraging new entrants through start-ups, as well as FDI.
With the textile industry growth, the textile machinery industry size is also expected to double to Rs. 45,000 crores in the next seven years from the present Rs. 22,000 crores on the back of new projects and emphasis on setting up textile parks. Seeing the future potential, Indian textile companies have already lined up investments for future capacity expansion. Companies like Trident, Welspun, Chiripal Group, KPR Mills, RSWM, Arvind, Raymonds and Mafatlals have announced siginificant investments in areas like home textiles, denim and garmenting.
Trident – Largest manufacturer of terry towels in the world
Expanding scale and reach. Incorporated in 1985 by Chairman Rajinder Gupta, the Trident Group today is one of the biggest yarn producers in India and the largest for terry towels globally. It has eight yarn units at Sanghera (Punjab) and Budni (MP), while the integrated Dhaula complex (Punjab) has three home-textile units, two paper units, chemicals and energy. The capacities have reached global scale – yarn (100,800tons), terry towel (360mn pieces), paper (450tpd) – thereby providing competitive edge in the commoditised sector. The customer base is highly diversified with MNCs in 75 countries across the globe, comprising 9 of the top 10 retailers in U.S., 6 leading retailers in Europe and 5 of the top 7 in Australia and New Zealand (ANZ).
|Mr. Rajinder Gupta, Chairman, Trident Group|
After unveiling the world’s largest terry towel plant, the Trident Group aims to surpass the bounds of being the world’s largest integrated home textile manufacturer and continues to expand and modernize its capacities making it comparable with global standards.
The company already has its yarn manufacturing facilities at Sanghera in Punjab and Budhni in M.P. with a total of 3.66 lakh spindles and 3,584 rotors. The newly-commissioned plant at Budhni would further add 1,920 rotors to its existing capacity. With an investment of Rs. 60 crores for this expansion project, Trident has stepped forward towards the self-reliant manufacturing process.
Trident also commissioned an open-end yarn spinning expansion project in July 2014, with a capacity of nearly 10,000 TPA of cotton open-end yarn for meeting the yarn requirement for its terry towel unit in Budhni.
The company will make a total investment of Rs. 2,400 crores for its composite textile project and will engage over 25,000 families across all its business verticals. The project is completely vertically integrated, from cotton-to terry towel and from cotton to bed linen. Keeping pace with the technology, Trident has partnered with global suppliers like Karl Mayer, Toyota, Staubli, Benninger, Anglada, Muratec, LMW, Trutzschler, Oerlikon, Savio, etc., for its expansion and diversification plans.
K.P.R. Mill – A worth looking candidate
KPR has one of the largest vertically integrated manufacturing capacities in India producing Superior Quality Readymade Knitted Apparel; Fabrics; Compact, Melange, Carded & Combed Yarn. K.P.R. Mill Limited engages in the manufacture of cotton yarn, knitted fabric, and readymade garments and also produces sugar & wind power has reported its financial results for the quarter ended 31st March, 2015. For Q4 FY15, the company’s Net profit stood at Rs.454.00 million against Rs.398.20 million for Q4 FY14, an increase of 14.01% y-o-y. Revenue of Rs. 5297.40 million for the 4th quarter of financial year 2014-15 compared to Rs. 5664.50 million for the corresponding quarter last year. During the quarter, EBITDA stood at Rs. 939.60 million as compared to Rs. 957.10 million in Q4 FY14. The company has reported an EPS of Rs. 12.05 for the 4th quarter of FY15 as against an EPS of Rs. 10.57 in the corresponding quarter of the previous year.
|Mr. K.P. Ramasamy, Chairman, KPR Mill Ltd|
KPR has also announced revival of operations at its state-of-the-art processing unit now backed by an ETP with a capacity to process 9,000 MT of fabrics per annum. KPR has a cumulative capacity of 3,53,088 spindles to produce 90,000 MT of yarn per annum, a knitting facility to produce 21,000 MT of fabrics per year, a garmenting facility to turn out 63 million pieces of ready-made knitted apparel per year(operating double shift), a state-of-the-art processing facility to process 9,000 MT per yearand 66 wind mills with aggregate power generation of 61.92 MW that meets 75 per cent of the company’s power requirement through green energy.
Sensing the prospects for value-added yarn KPR has already expanded its compact yarn capacity and has established a melange yarn unit at its Karumathampatti plant with a capacity of 16,128 spindles. Expansion and modernisation of the Sathyamangalam spinning plant has already been completed.
Be a Part of the long term growth story
Foreseeing the bright future, we would recommend an entry in Trident @ the current price of Rs. 33 and KPR Mill @ the current price of Rs. 667
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