Export Orders Revivify Textile Counters

Textile company scrips are back in the reckoning on the bourses after years of neglect.

Thanks to buoyant export demand in both the cotton and man-made fibre categories, the markets are rerating textile scrips.

As with most other commodities, the driver this time also is China. China has a yarn production of around 5,000 million kg per annum and it is moving up the value chain into manufacturing fabric for re-export. Following this, it is expected that China will have to import/ outsource most of the requirements. Even assuming that at least 40 per cent of its demand is imported, the resulting offtake will equal India