Synthetic textile exports on the rise

Exports of synthetic and rayon textiles touched an all-time high of Rs 10,227 crore in 2005-06, a growth of nearly 6 per cent over the previous year. The industry is now eyeing Rs 27,000 crore export revenue in four years.

The export target set by Synthetic & Rayon Textiles Export Promotion Council (SRTEPC) is in line with the buyers' increased attention to India for sourcing synthetic fibre textiles since the removal of quota in January last year.

Addressing the council's annual general meeting today, Chairman R L Toshniwal said export showed a good growth performance despite rising crude oil prices, intensified competition in many of the major markets apart from reduction in DEPB rates and high excise duty.

He said exports of the segment continued to see the buoyant trend in the current financial year as well. During April-July this year, exports rose an impressive 21 per cent to Rs 2,673 crore over the corresponding period of 2005-06.

"All major synthetic and rayon textile items with the exception of made-ups have showed impressive growth during April-July 2006," Toshniwal said.

During the four-month period, fibre exports jumped 119 per cent y-o-y to Rs 206 crore. While yarn exports increased 24 per cent y-o-y to touch Rs 807 crore, the fabric segment too witnessed a similar growth to post Rs 1,243 crore exports in the same period.

For the period, the UAE, the US, Saudi Arabia, Turkey, Italy, Syria, Brazil and Egypt were the major markets for exports of Indian synthetic textiles.

He said an increasing number of buyers in Europe and the US were shifting their attention to India as a promising destination for synthetic fibre textiles since the end of quota regime and also as a safeguard for reducing the risk of single country sourcing from China.

He said India's strategy in this scenario should be to ensure integration from raw material to garmenting and economies of scale to emerge as the lowest-cost producer capable of executing timely delivery.

"The presence of large and small players and ability to switch pattern of production will enable the country to score over its competitors in the international markets," Toshniwal said.

SRTEPC chairman said a reduction in the market share of Turkey in the EU and the market shares of Mexico and Canada in the US should provide the country better export opportunities.

"This (other nations losing their market shares) will provide more opportunities to countries like India. It is important to capture these markets before the safeguards against Chinese exports are lifted in 2008," Toshniwal said.