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Indian textile companies expanding and diversifying for quantum growth

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Textile companies across India which are expanding like yarn giants, are entering into knitted fabric, or diversifying into denim fabric segment or into allied categories. Some of them are enjoying good export growth and are not worried or impacted by Indian market conditions, while few have created niche with their focused products or target market. The growing demand of polyester is another big reason behind their expansion. Apparel Resources identified some such companies and met their top-level professionals to know about their plans for further growth and diversification. Despite factors like currency fluctuation, transformation of Indian economy due to policy changes, these companies are positive about significant growth in the coming years.

Doing yarn business of Rs. 1100 crore, Wearit Group, Kolkata recently acquired Century Denim and Century Yarn (divisions of Century Textile & Industries Ltd.). Its denim production capacity is 1.8 million metres per year. It has two lines and can produce top width and bottom width. Besides, it has a jigger with which it can produce top dye with more colour options. The group has also added another 25,000 spindles and now its total number of spindles is 1.75 lakh distributed across its 4 different locations in Madhya Pradesh and Rajasthan. Furthermore, once it becomes strong enough in denim fabric, it will be definitely going into garments which may take another two years. Adarsh Kumar Khare, Head Marketing-HVA explained the reasons behind this expansion, “As far as denim is concerned, there is a huge scope in this segment as consumption is continuously increasing. Our strength in variety of yarn manufacturing gives us an edge and nearly 65 per cent is being exported to various countries so that we see smooth and continuously growing business.” HVA has a yarn production base of 4,000 MT per year. The company recently came up with the complete range of mélange yarns which includes 100 per cent polyester, poly cotton, and poly viscose. It even offers industrial yarns with a package of 5.7 kg and that too without any knots which is very rare in India. Being equally strong in cotton and polyester yarns, the company is catering to top players of home furnishing as well as technical textiles companies.

Growth Track

Wearit Group, Kolkata entered into denim fabric manufacturing, and has added 25,000 spindles too.

Bhilosa Industries, Mumbai is doubling its yarn capacity, and will add 350 circular knitting machines too.

Gimatex Industries, Mumbai added product offerings, and will also start its own denim plant.

Known for its draw textured yarn, Bhilosa Industries, Mumbai is completely into polyester texturized yarn. Currently producing 1,500 tonnes per day, it is in the process to double its capacity in the next 8 months. Also coming up with polyester staple fibre, the company is investing hugely in circular knitting. As of now, it has 60 circular knitting machines (majorly of Mayer & Cie) while the plan is to have a set-up of 400 circular knitting machines in the next 1½ years. Sandeep Rohilla, President, Marketing & Sales of the company shared, “Growing demand of polyester motivated us to expand. We are replacing spun yarn, cotton yarns by polyester as polyester costs half compared to these products. The use of polyester is growing everywhere be it in India or across the globe, and in both apparel as well as home textiles. It is not easy to find difference between our polyester and other cotton fabric.” He further added that China is covering 50 to 55 per cent of the total polyester market while India has a share of just 13 to 15 per cent which was 5 per cent three years ago. There is scope for India to get at least 40 per cent from China if India goes for more expansion, and gets geared up. Exporting 25 per cent of its total production to Brazil, Egypt, Mexico, Bangladesh etc, the company has a major share in Ludhiana, Panipat, and Surat markets.

Nagreeka Exports Ltd., Mumbai is expanding in dyeing. It started PC dyeing, spun polyester, linen dyeing for big brands and is further planning to start injection dyeing.

Polyester is also attracting the top players of India who were mainly into cotton so far. We can take the example of the vertical giant Arvind Ltd., which has recently started offering knitted polyester fabric. Nearly 7 months ago, it came up with its polyester fabric range which is a sustainable line with focus on zero detergent and recycling. It offers 100 per cent polyester, poly spandex, acrylic etc. Currently it is just 5 per cent of the company’s total knitted fabric capacity which is 10,000 tonnes per year.

Hemant J Shah, Marketing Manager of the company briefed, “We tried to do diversity from cotton to poly synthetic, mainly for activewear as majority of the world consumption except India is moving towards synthetics.”

The company has received some of its initial orders from Bangalore and now its targeting other markets like Tirupur. Having an edge in the polyester range, it has a healthy combination of core (70%), innovation (20%), and fashion (10%).

Maral Overseas, Noida is coming up with digital printing which is expected to start in the next 4 months. It will invest nearly Rs.11 crore in this initiative.

Many companies are focusing on infrastructure and capacity enhancement while others have increased their product offering. Gimatex Industries, Mumbai has added tencel modal, cotton modal yarns also in its product basket while it was already doing mélange yarns, viscose yarns, cotton compact yarns etc. Currently having two ginning factories, 1.5 lakh spindles, 300 airjet looms and processing unit with a capacity of 1 lakh metres per day, the company is further getting support for its textile park near Nagpur. In this park, already one garmenting unit is coming up and this unit will source fabric from Gimatex itself. Furthermore, Gimatex is planning for its denim plant also which shall start down the line in two years. Nimish Parekh, Vice President (Exports) of the company informed, “Existing units of denim may be facing glut but new technology, production efficiency will improve drastically and as we have a very strong marketing channel, we wouldn’t be affected.” Discussions for denim plant are currently in the planning stage.

Salem-based Chiranjilal Spinners took over a spinning unit of 12,000 spindles with an investment of Rs. 21 crore and now has a total of 34,000 spindles.

Not only are big companies moving further with the above mentioned expansion plans, even medium-level companies are equally aggressive to increase their product offerings and to add more value to their client base. For example, Kumaragiri Spinnerss, Erode having 18,000 spindles, is now moving towards fabric manufacturing. TR Thangavell, Director of the company asserts, “Our customers are asking for fabric rather than yarn to save their lead time. We are in touch with few clients and are hopeful to start 200 tonnes fabric per month. The project will be started in the next few months with 10 circular knitting machines and later 15 more circular knitting will be added.” He further added that looking at the overall international scenario, the coming months will be more positive for the textile industry. At present, the company is offering a variety of yarns with consistent focus on R&D. It recently started its new offering called CPV blend which is a mixture of cotton (52%), polyester (36%) and viscose (12%). The company also has its own sizing and weaving unit and claims to have India’s first ‘exclusive’ Vortex project.