In line with the industry trend and the expected surge
in demand, the city-based Rs232-crore Loyal Textile Mills
Limited has decided to expand capacity.
the 50-year-old Manikam Ramaswami, chairman and managing
director, "We will be investing around Rs60 crore
per annum for next four years," he adds.
yarn, grey and dyed fabric-woven and knitted products,
Loyal Textiles also makes bed sheets and worker uniforms.
This fiscal the company expects a turnover of Rs300 crore.
a time when many in the Indian textile industry say that
India has missed the bus to take advantage of multi-fibre
agreement going out, Ramaswami voices a different view.
buyers don't want to put all their eggs in one Chinese
basket. They know Indian textile industry has the capability
to service their needs and are willing to wait for a year
or so," he remarks.
can believe him as Loyal Textiles exports a major portion
of its production and also has joint ventures in Italy
and Greece. The Italian company, Gruppo and P&P Loyal
Spa, is a $12-million turnover company and the Greek company,
Loyal Dimco Grouppo S.A, logs a turnover of $2 million.
says the capacity increase by manufacturers is not due
to increase in over all market size but due to reduction
of capacity in some other market. The immediate past chairman
of The Southern India Mills' Association, the current
status of the domestic textile industry is good with the
government taking several positive steps for the textile
is optimistic about India becoming a global player in
the textile sector and lists out the reasonse. "Many
mills are now resorting to contract farming or offer advisory
services to cotton farmers. Cotton seed companies are
coming out with better seed varieties thereby reducing
the use of pesticides the big cost factor in cotton
farming. Cotton yield is also becoming better and the
cost of production is going down."
the industry level, modern process houses are coming up
bringing in cost reductions. "For instance, earlier,
automatic cutting was not done in a major way as colour
consistency was not guaranteed since the piece length
was just 60 metres. Now we can get a piece length up to
500 metres. This in turn saves inspection costs,"
the industry trend he states, there will be many job work
future. "Till now, not many have wanted to undertake
job-work for others. They wanted to be independent units.
To survive small players can function in clusters."