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| Textile processing units in Gujarat witness surge in demand, orders |
| Vinay Umarji / Mumbai/ Ahmedabad Mar 17, 2010, 00:12 IST |
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After its business plunged by 50-60 per cent six months ago, the textile processing industry in Gujarat is expecting a revival in demand. The industry is already witnessing a rise in its business by 10-15 per cent with orders beginning to pour in.
"Just a few months ago, we were going through a slump with the demand dropping by 50-60 per cent. So much so that the inventory had begun to pile up. But things are moving back to normal now. With the orders beginning to pour in, business has improved by 10-15 per cent," said Nitin Thakkar, president of Ahmedabad Textile Processors' Association (ATPA).
While on one hand the industry was reeling under decline in demand, an abnormal price fluctuation was also troubling processing units in Gujarat.
"Usually, prices of grey cloth fluctuate by Rs 1-2 per metre. However, this time the fluctuation was as high as 5-10 per metre. Processing units had become wary of buying raw materials altogether," said Nareshkumar Sharma, vice president of ATPA.
According to Sharma, as a direct result of price fluctuation, grey cloth inventory also began to rise. "It is only now that the processing units are able to dispose off the piled up inventory of grey cloth. Also, fresh orders are resulting in continual flow of grey cloth. We expect the next 3-4 months will see significant rise in demand for finished goods that will push inventory flow of processed cloth as well," he added.
The association itself, which houses around 125 member processing units, witnesses currently an annual turnover of Rs 2,500 crore, Thakkar added.
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