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Rolling back of GST Hike, stabilise cotton price are key expectations of the textile sector from Union Budget 2022 - SVP Global Textiles Ltd

December 30, 2021 23:30 IST | ANI Press Release
Tennis player James Blake
Maj Gen OP Gulia, (Retd), CEO, SVP Global Ventures Ltd.

Mumbai (Maharashtra) [India], December 30 (ANI/NewsVoir): Indian Textile sector has bounced back very strongly post unlock from COVID 19 slump.

Slowdown in Chinese economy, anti-China sentiment has helped Indian Textile manufacturers and exporters to grab a bigger share in the global textile business and strengthen its presence in US and European Union markets.

The textile industry feels that it is the opportune time for the Centre to provide appropriate support to the industry to fuel its next phase of growth and expect it is address in the upcoming Union Budget 2022.

Maj Gen OP Gulia, SM, VSM (retd) CEO, SVP Global Textiles Ltd, said, "Rolling back of GST hike, stable cotton prices, simplifying CAROTAR 2020 and incentivising use of renewal energy are some of the key expectations of the textile sector from the upcoming Union Budget of 2022. Despite concerns expressed by the industry, the Govt increased the GST on textiles from 5 percent to 12 percent, to be effective from 1 January, 2022. This will have a negative effect on the growth of the Textile Industry which contributes a major share in employment generation and export earnings. It is requested to keep the GST rates at 5 percent only."

India has advantage of being the largest producer of raw materials including cotton and polyester along with skilled labour, high-tech machinery. It also has the second-largest yarn-spinning capacity in the world (after China), accounting for approximately 20 percent of the world's spindle capacity.

"The cotton is the major raw ingredient (60 percent) and the prices of cotton have skyrocketed since the last 11 seasons. We request the Govt to stabilise the cotton prices. The Govt may set up a cotton price stabilisation fund scheme comprising 5 percent interest subvention or loan at NABARD rate of interest, reduction in margin money from 25 percent to 10 percent and increase in the cotton working capital limit from 3 months to 9 months", said OP Gulia.

India is the second largest textile exporter in the world after China. India's textile industry contributes 14 per cent of the industry production and 12 per cent to the country's export earnings. Recently exporters are facing difficulty in clearance of import goods from FTA Countries in the wake of implementation of Customs Administration of Rules of Origin under Trade Agreements (CAROTAR), 2020. The industry expects Govt should simplify the clearance of import goods from FTA Countries.

"Textile industry is the major consumer of power. To encourage use of renewable power, the Govt must encourage and incentivise investment in green energy and eco-friendly technologies by offering tax benefits to the manufacturers. The China plus One is a big opportunity for India to grab. The world textile sector is going through an overhaul. India has the potential and with requisite Govt support it can fill the vacuum and attain a leadership role in Textile and Apparel sector," said Maj Gen OP Gulia, SM, VSM (retd) CEO, SVP Global Textiles Ltd.

Established in 1898, by Shri Vallabh Pittie, SVP Group is primarily engaged in manufacturing of polyester, polyester & cotton blend, and 100 percent cotton yarn across 3 state-of-the-art manufacturing facilities in Jhalawar (Rajasthan), Ramnad (Coimbatore) and Sohar (Oman). Company has a vision to become a world-leading, fully integrated textile company in manufacturing yarn, fabric and garments.

The company has recently commenced commercial operations at its textile plant in Sohar Free Trade Zone in Oman with an investment of USD 150 million (around Rs. 1100 crore). Company has set up 1.5 lakh spindles and 3,500 rotors facility to expand production of compact cotton yarn. With the completion of expansion at Sohar, the total operational capacity of the company has increased to 4 lakh spindles and 5,900 rotors. Expansion in Oman offers many strategic, operational, financial and logistics benefits to the company over a long period of time.

Company is also investing around Rs. 100 crore in setting up a 4,375 MT per annum green-field facility for technical textiles at Jhalawar, Rajasthan and plans to manufacture protective uniforms, functional garments, medical textile, mobiltech, hometech, anti-odour and antibacterial knitted fabric for sports, medical and cosmetic uses. Company plans to commence commercial production in 12 to 15 months.

SVP Global is among top 2 percent Indian Manufacturers with technology less than 5 years old and output of 153-154 grams per spindle per shift, which is highest in the industry. Company's manufacturing facilities are equipped with latest technology automated machinery equipped with Artificial Intelligence and IOT capabilities from Blow Room to Windling. SVP Global is accredited as an approved supplier for leading brands including IKEA and Zara.

This story is provided by NewsVoir. ANI will not be responsible in any way for the content of this article. (ANI/NewsVoir)

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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

 

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Rolling back of GST Hike, stabilise cotton price are key expectations of the textile sector from Union Budget 2022 - SVP Global Textiles Ltd

Mumbai (Maharashtra) [India], December 30 (ANI/NewsVoir): Indian Textile sector has bounced back very strongly post unlock from COVID 19 slump.

Slowdown in Chinese economy, anti-China sentiment has helped Indian Textile manufacturers and exporters to grab a bigger share in the global textile business and strengthen its presence in US and European Union markets.

The textile industry feels that it is the opportune time for the Centre to provide appropriate support to the industry to fuel its next phase of growth and expect it is address in the upcoming Union Budget 2022.

Maj Gen OP Gulia, SM, VSM (retd) CEO, SVP Global Textiles Ltd, said, "Rolling back of GST hike, stable cotton prices, simplifying CAROTAR 2020 and incentivising use of renewal energy are some of the key expectations of the textile sector from the upcoming Union Budget of 2022. Despite concerns expressed by the industry, the Govt increased the GST on textiles from 5 percent to 12 percent, to be effective from 1 January, 2022. This will have a negative effect on the growth of the Textile Industry which contributes a major share in employment generation and export earnings. It is requested to keep the GST rates at 5 percent only."

India has advantage of being the largest producer of raw materials including cotton and polyester along with skilled labour, high-tech machinery. It also has the second-largest yarn-spinning capacity in the world (after China), accounting for approximately 20 percent of the world's spindle capacity.

"The cotton is the major raw ingredient (60 percent) and the prices of cotton have skyrocketed since the last 11 seasons. We request the Govt to stabilise the cotton prices. The Govt may set up a cotton price stabilisation fund scheme comprising 5 percent interest subvention or loan at NABARD rate of interest, reduction in margin money from 25 percent to 10 percent and increase in the cotton working capital limit from 3 months to 9 months", said OP Gulia.

India is the second largest textile exporter in the world after China. India's textile industry contributes 14 per cent of the industry production and 12 per cent to the country's export earnings. Recently exporters are facing difficulty in clearance of import goods from FTA Countries in the wake of implementation of Customs Administration of Rules of Origin under Trade Agreements (CAROTAR), 2020. The industry expects Govt should simplify the clearance of import goods from FTA Countries.

"Textile industry is the major consumer of power. To encourage use of renewable power, the Govt must encourage and incentivise investment in green energy and eco-friendly technologies by offering tax benefits to the manufacturers. The China plus One is a big opportunity for India to grab. The world textile sector is going through an overhaul. India has the potential and with requisite Govt support it can fill the vacuum and attain a leadership role in Textile and Apparel sector," said Maj Gen OP Gulia, SM, VSM (retd) CEO, SVP Global Textiles Ltd.

Established in 1898, by Shri Vallabh Pittie, SVP Group is primarily engaged in manufacturing of polyester, polyester & cotton blend, and 100 percent cotton yarn across 3 state-of-the-art manufacturing facilities in Jhalawar (Rajasthan), Ramnad (Coimbatore) and Sohar (Oman). Company has a vision to become a world-leading, fully integrated textile company in manufacturing yarn, fabric and garments.

The company has recently commenced commercial operations at its textile plant in Sohar Free Trade Zone in Oman with an investment of USD 150 million (around Rs. 1100 crore). Company has set up 1.5 lakh spindles and 3,500 rotors facility to expand production of compact cotton yarn. With the completion of expansion at Sohar, the total operational capacity of the company has increased to 4 lakh spindles and 5,900 rotors. Expansion in Oman offers many strategic, operational, financial and logistics benefits to the company over a long period of time.

Company is also investing around Rs. 100 crore in setting up a 4,375 MT per annum green-field facility for technical textiles at Jhalawar, Rajasthan and plans to manufacture protective uniforms, functional garments, medical textile, mobiltech, hometech, anti-odour and antibacterial knitted fabric for sports, medical and cosmetic uses. Company plans to commence commercial production in 12 to 15 months.

SVP Global is among top 2 percent Indian Manufacturers with technology less than 5 years old and output of 153-154 grams per spindle per shift, which is highest in the industry. Company's manufacturing facilities are equipped with latest technology automated machinery equipped with Artificial Intelligence and IOT capabilities from Blow Room to Windling. SVP Global is accredited as an approved supplier for leading brands including IKEA and Zara.

This story is provided by NewsVoir. ANI will not be responsible in any way for the content of this article. (ANI/NewsVoir)

DISCLAIMER


(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

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