Coimbatore: Textile sector bets on growth with focus on value addition

Coimbatore: The Tamil Nadu textile sector is betting on growth with a focus on value addition, according to a survey by Indian Texpreneurs Federation (ITF), a major textile body.

ITF conducted the survey to understand the growth aspirations of the textile and apparel sector in Tamil Nadu in line with the positive trend prevailing in exports market in the post- Covid global business environment.

As many as 257 member companies with the combined yearly sales turnover of Rs 36,000 crore participated in the survey from manufacturing units across the value chain which includes spinning, semi-integrated, integrated, weaving, apparel, processing and home textiles.

While 30 per cent of the entrepreneurs have mentioned they were confident of doubling their current sales in 3 years' time with a 25 per cent Compound Annual Gorwth Rate (CAGR), 18 per ent mentioned that they will double their current sales in 4 years with a 20 per cent CAGR and 36 per cent mentioned about achieving the target of doubling yarn sales in 5 years' time with 15 per cent CAGR.

In total, 76 per cent of the surveyed firms mentioned doubling the current site of business in 3 to 5 years with new capex cycle, ITF convenor Prabhu Damodharan said here Monday. Stating that this showed a very positive and vibrant change in the business environment in textile and apparel sector in Tamil Nadu, he said within the sub-segments of textile manufacturing, home textiles, weaving & apparel segments were showing better momentum in terms of growth.

"This trend will help the TN textile sector to further strengthen the value-added product manufacturing," he said. As far as interest for second and younger generation in the textile business, 58 per cent of the entrepreneurs showed keen willingness of the next generation in taking forward the business, which was a a positive sign, he said.

On exploring IPOs, 16 per cent of the companies (around 40 companies) were keen to explore the option to list their shares in Indian equity markets, of which market capitalisation crossed Rs 240 lakh crore. Team ITF will guide interested companies in making value-added products, create various platforms to enable NextGen to engage and guide companies to step into eEquity markets in a structural way, Prabhu said.