INTRODUCTION

The Textile Industry occupies a vital place in the Indian economy and contributes substantially to its exports earnings. Textiles exports represent nearly 30 per cent of the country's total exports. It has a high weight age of over 20 per cent in the National production. It provides direct employment to over 15 million persons in the mill, powerloom and handloom sectors. India is the world’s second largest producer of textiles after China. It is the world’s third largest producer of cotton-after China and the USA-and the second largest cotton consumer after China. The textile industry in India is one of the oldest manufacturing sectors in the country and is currently it’s largest1.

The Textile industry occupies an important place in the Economy of the country because of its contribution to the industrial output, employment generation and foreign exchange earnings. The textile industry encompasses a range of industrial units, which use a wide variety of natural and synthetic fibres to produce fabrics. The textile industry can be broadly classified into two categories, the organized mill sector and the unorganized mill sector. Considering the significance and contribution of textile sector in national economy, initiative and efforts are being made to take urgent and adequate steps to attract investment and encourage wide spread development and growth in this sector.

The group has been accorded the status of ‘Export House’ by The Cotton Textile Export Promotion Council of India (TEXPROCIL). The countries we export our products to include Belgium, China, Italy, Japan, Malaysia, Portugal, South Korea, Turkey and U.K. among others.

All manufacturing units are linked to each other and the corporate office by Radio link to ensure free-flow of communication. The entire process of manufacturing, logistics & Accounting are fully intergrated by ERP solutions of SAP.

Prime Textiles Ltd

A subsidiary of Yarn Syndicate, Prime Textiles Ltd, earlier known as ATL Textiles, is part of the Patodia YSL group, which has been in the textile business for more than five decades.

A government-recognised export house, it produces cotton yarns of varied counts with high value-addition post-spinning processes to meet customer specifications. The products are well received in Japan, South Korea, Italy, the EEC and other countries.

Prime Textiles expanded the capacities of its blowroom and preparatory machines, facilitating the production of melange yarn. It modernised the facilities for cotton yarn to capitalise on the export market. It diversified into knitting by installing Mayer & Cie knitting machines, manufactured by Mayer & Cie, Rundstrickmaschinen, Germany. The above projects were part-financed by a public issue in Mar.'94.

The company made two rights issues to finance a 100 per cent EOU for cotton yarn, but the project was deferred and the proceeds were used for working capital. The company installed 3.24 MW Power plant to cater to the spinning unit in order to keep at check the incidence of power overhead.

During 2000-2001 the company has implemented on a modernization program for allowing to absorb for absorbing latest technology. The company availed Term loan for IDBI to the tune of Rs.100 million under the TUF scheme to meet the project outlay of Rs.141.50 million. The Third phase of TUFS is under implementation stage and Central Bank of India has appraised the project and a term loan of Rs.24.50 million has been sanctioned to meet the project outlay of Rs.31.57 million.

Shiva Texyarn Ltd

Shiva Texyarn Limited -Established in 1989, the company manufactures high quality superior yarn that meets international standards. With a spindlage of over 37,344, have a production capacity of 15 tons a day. 100 per cent Cotton yarn for knitting is a major area of specialization. The raw material is sourced from select cotton fields in the country and also imported from West Africa, Common Wealth of Independent States and Australian Countries and converted into high grade yarn on state of the art machinery from Lakshmi Rieter spinning machinery including Autoleveller Drawframes and Autoconers from Schlafhorst.

To ensure Uster Standards at all times, the mill has invested in major testing equipment's for testing cotton and yarn. This includes the most advanced equipment's like Uster Evenness Tester III, Classimate Tester and Ring Data System. Besides the above, Shiva Textiles established a strong brand image in the domestic knitting centers like Tirupur, Calcutta, Kanpur and Mumbai.70 per cent of the production is exported to Israel, Egypt, Singapore, Malaysia, Korea, HongKong, Srilanka, Taiwan, Moritius markets and Non-quota European Markets. During 1999-2000, the mill achieved an export turnover of Rs. 600 million. Ne 30/1, Ne 32/1, 36/1 and Ne 40/1 combed knitting cotton yarn, 40/1 combed weaving cotton yarn are the major counts exported to these countries

In 1998-99, it increased its installed capacity to 5,184 Rotors. During the year 1999-2000, the company achieved sales 20 per cent higher than the previous year i.e. crossed Rs.100 crores. The company has acquired a ring spinning unit with an installed capacity of 16800 spindles, unit located in the Udamalpet - Palani state highway.

The entire expansion activities which were taken up including the installation of three open end spinning frames of 240 rotors each have been completed. These three additional open-end frames will be in operation for the full year during the financial year 2001-02.

The company had set up a processing house for the purpose of bleaching and washing in Perundurai Industrial Complex, Tamilnadu, with a total outlay of about Rs.3.50 crores. Originally, this was established as a wholly owned subsidiary of the company. Now the company is proposed to merge the wholly owned subsidiary with the holding company with effect from 01.04.2001.

Precot Mills Ltd

Promoted by N Damodaran, Precot Mills (PML) (originally floated as Premier Cotton Spinning Mills) was incorporated in 1962 in Palakad, Kerala, to produce cotton yarn with an initial capacity of 12,096 spindles. PML made its maiden issue in 1962. Production of cotton yarn commenced during 1964. The company changed its name to the present one in 1985.

PML set up its second mill in Kodigenahalli, Andhra Pradesh, with an installed capacity of 28,800 spindles which was expanded to 51,840 spindles in 1991. In the next year, PML set up a 100 per cent EOU at Walayar, Kerala (installed capacity 10,080 spindles and 384 rotors). The open end-spinning unit of the company was commissioned in Sep.'95 which reached its full capacity of 1152 rotors. It has set up a wholly owned subsidiary in Malaysia to exploit the Asia-Pacific region.

During 1996-97, PML has increased the installed capacity of Spindles by 6336 Nos. CGF Investments, which was a Subsidiary of the company and now has been merged with Coimbatore General Finance, which is another subsidiary of the company with effect from 1st Feb.'97. A new yarn-dyeing unit with a capacity of 2 tonnes per day was commissioned in Gauribindur; Karnataka which enabled the company to enhance its sale of value added dyed yarn in the domestic market. The company has taken over its subsidiary company Suprem Textiles Processing Ltd for convenience of administrative purpose.

A forward integration plan for manufacture of yarn dyed shirting fabrics has been set up a Weaving Unit at Vettaikaranpurdur near Pollachi.This unit commenced its commercial production at a cost of Rs.1140 lacs in 2001. Under the TUF scheme the company made a capital investment to its Weaving unit and also set up an captive dyeing unit. The project was financed by term loans from Andhra Bank.

The company made a buy back of 5.5 lac equity shares starting from April 2002 to July 2002. After the post buy back the equity capital stands reduced to Rs.545 lacs. To reduce energy cost the company installed 4 wind turbines in September 2002 at a cost of RS.1165 lacs. The company made a capital expenditure to the tune of Rs.3505 lacs during 2002-03 and the same was financed by term loan from ICICI bank.

The Precot Group has symbolized Quality and Trust in the textile industry. With four decades of spinning experience and a diverse range of products that include cotton yarns, sewing threads, fabrics and garments; Precot is one of the few totally integrated textile players with a total turnover of 70 million US Dollars. The Group has state of the art infrastructure facilities and skilled personnel to rise up to customer expectations.

  • Defined set of values and principles
  • Symbolizes: Quality, Trust and Commitment
  • Turnover: 70 million US dollars
  • Installed capacity: 155,000 spindles, 1536 Rotors and 117 looms

Product Range

The mill is fully equipped to produce yarn in wide range. This includes the following counts for both domestic and export market
Ne 30/1 combed Knitting in 100 per cent cotton yarn.
Ne 32/1 combed Knitting in 100 per cent cotton yarn.
Ne 40/1 combed Knitting in 100 per cent cotton yarn.

The company has around 40 windmills in Coimbatore, Tamilnadu. The power generated by the windmills is supplied exclusively to the Bannari Amman group companies Bannari Amman Spinning Mills and Shiva Textiles. The company floated a subsidiary of Annamalai Properties, to enter the property development sector. It is engaged in property development in Coimbatore, Madras and Bangalore, and other places. AFL has a vast network of branches in prominent cities.

Super Sales India Ltd

Super Sales India (SSIL), an associate member of the Lakshmi Machine Works group, was incorporated on 18 Sep.'81. Initially it commenced the business of erection of textile machinery. Later on, it started marketing textile machinery manufactured by Lakshmi Machine Works (LMWL), in collaboration with Mori Seiki, Japan. SSIL is also engaged in leasing of generators to meet the requirement of small-scale industries during power cuts. In Jan.'85, the company purchased a spinning mill with an installed capacity of 31,104 spindles and since then it is operating the said spinning mill.

In Jan.'92, SSIL came out with a rights issue of 15.75 lac equity shares, at a premium of Rs 40, aggregating Rs 7.88 cr. The proceeds of the issue were utilised to part-finance a Rs 11-cr project to establish a new spinning mill with 14,400 spindles at Pollachi, Tamilnadu. This unit started production in 1994. The yarn produced by this unit is of a very high quality and commands a good price in the market. SSIL has increased the installed capacity of Rotors by 216 Nos. The sales in the Textile Machinery was affected during the year, due to general recession in the textile industry and also due to lesser restrictions in the import of second hand textile machinery. The Agency Division has taken up Agency for sale of Textile machinery manufactured by M/s Textool Company Ltd during the year 2001. The company is focusing on productivity, quality and cost reduction to bring about an improvement on the working of this division as well. Out of the three units under Textile Division, two were engaged in manufacturing of grey yarn, and one of its units at Pollachi had a optimum capacity throughout the year and the company expects a healthy performance in the coming years when compared to previous year.

Super Spinning Mills Ltd

Super Spinning Mills (SSML) was incorporated in 1962 and commercial production of cotton yarn commenced in Apr.'64, with an initial installed capacity of 12,000 spindles. The installed capacity was increased to 50,548 spindles by 1981.

SSML set up its second unit at Kotnur, Andhra Pradesh, with an initial capacity of 28,800 spindles. The company expanded its installed capacity at the second unit to 51480 spindles in 1991. In 1992, it set up its 100% EOU at Gudalur (Tamilnadu) with an installed capacity of 10,080 spindles. The company's expansion programme was financed by financial institutions. It offered rights at a premium of Rs 10 per share to augment long-term resources for meeting the additional long-term capital requirements. All the three units of the company was awarded the ISO 9002 accreditation by BVQI. The company has received Board of Trustee of ICMF's Birla Economic and Textile Research Foundation award for Quality Management & Best Management Award for 1998-99 from Andhra Pradesh Government.

To make the management effective and utilization of resources the two subsidiaries companies M/s Standard General Finance Ltd and M/s SGF Investment Company Ltd were merged with Super Spinning Mills Ltd. In January, 2002 the Garments Division has started, SARA Apparels and Fashions a new division to produce 'Polo 'T' Shirts. Foreseeing the future prognosis the company is planning to set up one more Garment unit in Thekkalur Village in Coimbatore District.

In modern fashion technology, the demand for perfection begins right at the birth of the raw material, permeates through every single process, till the highly discerning customer dons the finished garment. It is this demand for perfection that has spurred the growth of an organization and its corporate philosophy. Those who can furnish clients with the best quality, competitive price, excellent customer services and prompt delivery can only survive in the market. Super Spinning Mills Limited takes immense pride in perceiving its role as the comprehensive architect of every single yarn and garment that its produces.

Over its four decades of chequered growth it has expanded to 1,30,000 spindles spread over 3 operational units. The company commenced operations with the manufacture of grey, gassed, mercerised and dyed cotton yarn. Today, the company has carved a niche for itself on the textile map of the country. We believe that quality products are not only by promises but also by proven results. Development of new textile products is done through - Innovation in defining production processes of higher quality and making available modern technologies and professionals with the highest level of competence.

The following advantages which have always been our ultimate goals: -

  • High Efficiency
  • The Most Competitive & Reasonable Price
  • Products Quality Guarantee
  • Prompt & Superior Service
  • Punctual Delivery

Super Spinning Mills has manufacture 100 per cent Combed Cotton Yarn for Knitting and Weaving Because of growing customer interest in products from around the world, Super Spinning Mills has explored international markets and exports products to many countries to meet those demands.

Markets

South Korea, Turkey, China, Italy, France, Taiwan, Germany,
Switzerland, Mauritius, Spain, Seribia, Bangladesh, Portugal,
Japan, Lanka, United Kingdom, Hong Kong, UAE, Poland, Malaysia.

Export Sales of Super Spinning Mills Ltd

This Table shows that export sales of Super Spinning Mills Limited during the year 1999-2000 to 2004-05. During that years an export sales shows increasing trend. In the year 2004-05 export sales of Super Spinning Mills Limited has been increased by Rs.774 million (i.e) 129 fold.

Export Sales of Super Spinning Mills Ltd

CONCLUSION

The Indian textile industry has an overwhelming presence in the economic life of the country. In the selected textile companies, Gangotri Textile Limited, Ambika Cotton Mills Limited, performances were satisfactory and the remaining companies will improve their performance. The present business world has more competition because the world has become a global village. So the companies’ objectives should be not only to earn high profit but also to run the business with social or moral obligation and maximum utilisation of ideal resource properly. At last the companies are achieving maximum target.

About the author’s

Dr.P.CHELLASAMY has done his Ph.D (2001) and M.Phil (1997) from the Department of Commerce, Madurai Kamaraj University. He has 7 years experience in Research and Teaching. He specializes in Financial Management, Financial Accounting, Marketing, Banking, Cost Accounting and Tally.

Dr. P. Chellasamy is currently working as a Lecturer in the department of Commerce, Bharathiar University, Coimbatore. He has 5 publications in reputed national journals to his credit and has presented 36 papers in various national and international conferences. He has conducted a National seminar and quite a few workshops. He has also written a book named ‘Modern Banking’. You can contact him on: drpcsamy@yahoo.co.in

I Did B.Com [Foreign Trade] in Chikkanna Government Arts and Science College in Tirupur, M.Com [Computer Application] in Cherraan’s Arts Science College in Kangayam, Now I am Doing My M.Phil Program in Bharathiar University at Coimbatore, I Presented 11 Papers out Of that 4 International Seminars, 5 National Level Seminar And 4 U.G.C Sponsored Seminars.

To read more articles on Textile, Fashion, Apparel, Technology, Retail and General please visit www.fibre2fashion.com/industry-article

TEXTILE INDUSTRY IN INDIA

The textile industry occupies a unique place in our country. One of the earliest to come into existence in India, it accounts for 14 per cent of the total industrial production, contributes to nearly 30 per cent of the total exports and is the second largest employment generator after agriculture. The Indian textile industry is one of the largest in the world with a massive raw material and textile-manufacturing base. Indian economy is largely dependent on the textile manufacturing and trade in addition to other major industries about 27 per cent of the exchange earning are on account of export of textiles and clothing alone. The textiles and clothing sector contributes about 14 per cent to the industrial production and 3 per cent to the gross domestic product of the country. Around eight per cent of the total excise revenue collection is contributed by the textile industry. So much so, the textile industry accounts for as large as 21 per cent total employment generated in the economy. Around 35 million people are directly employed in the textile manufacturing activities. Indirect employment including the manpower engaged in agricultural based raw material production like cotton and related trade and handling can be stated to be around another 60 million.

This Table shows the number of textile mills in India in the year 2003-04 and 2004-05. In India organized textile mill sector has increased from 1787 in 2003-04 to 1789 in 2004-05. During the year 2003-04 the production of yarn was 3051.07 million kg and it had increased to 3220.59 million kg in 2004-05. The number of workers worked in textiles mills during the year 2003-04 was 9,28,000 and it have decreased during the year 2004-05 was 9,18,000.

Growth of Textile Industry

The textile policy of 1985 and the economic policy of 1991 accelerated the economic growth during 1990s. Textile sector growth has been led by the spinning and the manmade fibre industry. The number of cotton/ manmade fibre textile mills rose from 1035 in 87-88 to 1741 by December 1997. The number of spinning mills number rose to 1461 in December 1997 from 752 in 87-88. Liberalisation led to the installation of open-end rotors and setting up of Export Oriented Units (EOU)2.

Currently India has the second highest spindleage in the world after China. Aggregate production of cloth during 1996-97 was 34,265 million sq. metres, an increase of nine percent over 1995-96. India's contribution in world production of cotton textiles was about 12 per cent a decade back, while currently it contributes to about 15 per cent of world cotton textiles

India has the second-largest yarn-spinning capacity in the world (after China), accounting for roughly 20 percent of the world’s spindle capacity. India’s spinning segment is fairly modernized; approximately 35 to 40 percent of India’s spindles are less than 10 years old. During 1989-98, India was the leading buyer of spinning machinery, accounting for 28 per cent of world shipments. India’s production of spun yarn is accounted for almost entirely by the “organized mill sector,” which includes 285 large. Man-made fibers, wool and silk segment grew by modest 4.5 per cent per annum during the 5-year period 2000-01 to 2005-06.During the first year of quota-free global trade, production increased leaps and bounds. Textiles production increased 10 per cent over 2004. The growth was fuelled by a 22 per cent rise in production of other textiles (including apparels). Cotton textile also posted an increase of nine per cent.

Textile Trend

India is the world’s second largest producer of textiles and garments after China. It is the world’s third largest producer of cotton-after China and the USA - and the second largest cotton consumer after China. The textile and garment industry in India is one of the oldest manufacturing sectors in the country and is currently the largest . The textile and garment industry fulfils a pivotal role in the Indian economy. It is a major foreign exchange earner and, after agriculture, it is the largest employer with a total workforce of 35 mn. In 2005 textiles and garments accounted for about 14 per cent of industrial production and 16 per cent of export earnings. In cotton yarn production India has made a mark in the world textile scenario. It is the largest exporter of the cotton yarns in the world. Besides yarn exports, India’s growing garment industry is working as a driving force to improve the yarn quality and to increase the production of cotton yarn.

During 2004-05, production of fabrics touched a peak of 45,378 million square meters. In the year 2005-06 up to November, production of fabrics registered a further growth of 9 per cent over the corresponding period of the previous year. Textile exports during April-November 2005 were at US$ 9,309.81 million, up 8.21 per cent from US$ 8,603.33 million during the corresponding period of the previous year. The first year of the non-quota regime for textiles has seen Indian exports to the US grow by 27 per cent year on year to US$ 4.6 billion, according to data released by the Office of Textiles and Apparels (OTEXA), USA.

In keeping with the trend of textile companies increasing capacity and adding new manufacturing units, the last week of 2005 saw a substantial number of firms, both new and existing, queuing up to file an intent to manufacture document with the Department of Industrial Policy and Promotion (DIPP). Out of 161 companies that had filed Industrial Entrepreneur Memoranda (IEM) in the last week of December, textile firms accounted for more than a quarter of all new applications.

In fact, in the last six years, an estimated US$ 6.7 billion has been invested in the textiles sector, aided by the Technology Up gradation Fund (TUF) scheme. The TUF scheme expires in March next year (2007) and the quotas on China will be lifted in 2008. Hence, companies will continue to add capacities over the next year. Also, according to CRISIL, the sector is likely to rise over US$ 3.5 billion from the capital markets in the next few years.

Schemes to strengthen investment in textile during the tenth plan cover

Rearranging spinning capacity at present nearly 38 million spindles are already existed. About 10 million old spindles required to be scrapped, and another 15 million spindles to be modernized. Adding on, about 3 million new spindles have to be set up during the tenth plan period.

Percentage Vision of India 2010 for Textiles

  • Textile economy to grow to $85billion by 2010
  • Creation of 12 million new jobs in textile sector.
  • To increase India’s share in world trade to six per cent by 2010.
  • Achieve export value of $40 billion by 2010.
  • Modernisation and consolidation for creating a globally competitive industry.

Trends in Spinning

The spinning industry is the most modern and internationally competitive segment of India’s textile industry. Yarn production increased 4.5 per cent annually between 1990 and 2004, as rapid gains by independent spinners more than offset declining production from composite mills. Reflecting trends in domestic demand, the most rapid growth has been in the production of blended and 100-per cent manmade yarns. Between 1990 and 2004, production of manmade and blended yarns grew at annual rates of 8.6 per cent and 9.1 per cent, respectively.

Production of Yarn

In India production for the textile group of industries showed a surge in the entire sector. There was a significant increase in respect of textile products 16.4 per cent and cotton textiles 8.5 per cent yarn production increased by 5.1 per cent due to increase in cotton yarn manmade filament yarn production nevertheless, there was a decline in respect of blended and 100 per cent Non-cotton yarn and manmade fibers. The share of textile sector in FDI was 1.02 per cent (in terms of amount) during 2005-06 as against 4.29 per cent in the year 2004-05.

This Table shows the Production of yarn during the financial year 1995-96 to 2005-06, Growth rate shows negative value in the year 1998-99, 2001-02 to 2003-04. This has been due to the quantity of cotton yarn, blended yarn, non-cotton yarn has declined. The remaining year’s growth rate shows positive values.

Export of Textile in India

World trade in textile in 2003 of which textile accounted for 43 per cent (US$169bn) and developed countries accounted for little over one third of world export in textile. The quota countries, USA, EU, and Canada accounted for 44 per cent of India’s textile exports. In the overall basket of cotton textile products in India, the share of cotton Madeups has gone up from US$174.03 million in April 2005 to US$181.10 million during April 2006, registering a growth of 4.07 per cent. In the case of cotton yarn there has been a growth of 11.92 per cent, while in the case of cotton fabrics, there has been a decline of 2.53 per cent.

Exhibit 2.2 shows that the exports of cotton textile in India. In this, ‘MADEUPS’ shows the highest volume of export during the year 2006 and followed by ‘YARN’ which was highest in the year 2005. Compared to ‘YARN’ and ‘FABRIC’, the ‘MADEUPS’ shows highest volume of export in the year 2005 and 2006.

The exhibit shows that India’s major markets for exports of cotton textiles in the year 2005 and 2006. In the year 2006 the major market for export of cotton textiles, was highest in the countries USA, Italy, Bangladesh, UK, China, Spain, and Portugal and the remaining countries export was highest in the year 2005.

Investment in Textile Industry

Investment is the key for Indian textiles to make rapid strides. The Vision Statement prepared by the Indian Cotton Mills’ federation has projected that the industry has the potential to reach a size of $85 billion by 2010 from the current level of $ 36 billion. Further, the vision statement has estimated that textile exports could touch $40 billion by 2010 from $ 11 billion in 2002. In the process, India’s share in the global textile and clothing trade is expected to double from three percent in 2002 to six percent by 2010. To reach these ambitious target, it is estimated that new investment to the tune of Rs.1, 40,000 crores will be needed in the next five years. After analysing the capacity and technology levels in various segments of textile Industry and the need for modernisation, funds required for various segments have been below.

This Table shows the investment in textile industry in India. The requirement of Investment will be highest in the segment woven processing (i.e.) Rs. 25800 crores and next highest requirement will be clothing (i.e) Rs. 24,000 crores. The Requirement of investment in spinning shows fourth place (i.e) Rs 10600 crores and the minimum amount of investment need in the segment jute (i.e) 500 crore only.

Advantages to Indian Cotton Textile Industry

In addition to availability of large labor force with required skills at a comparatively cheap rate, Indian Textile Industry has a great advantage in that India is the third largest cotton producing country in the World. Moreover, India has the largest area under cotton in the world. Further the average cotton yields per hectare were as low as 310 kgs per hectare as against countries like China, Brazil and Australia where yield levels are over 1000 kgs per hectare and world average yield of 728 Kgs per hectare, no doubt in the previous two years, yield levels have gone up to 435 kgs. /hectare. The Indian Cotton Textile Industry can therefore, bank up on the domestic production of cotton to meet its raw material requirements. This is a major source of strength for the Indian Cotton Textile Industry. Of course, China and Pakistan are also major cotton producing countries and the cotton textile Industry in those countries also enjoy the same advantage as Indian Cotton Textile Industry.

TEXTILE INDUSTRY IN TAMILNADU

Textile industry is one of the traditionally well-developed industries in Tamil Nadu. Tamil Nadu has a strong production base and accounts for about 1/3 rd of Textiles production in the country. The net value addition in Textile industry in Tamil Nadu is about 37.5 per cent, the highest in the country. The Textile mills are concentrated in Coimbatore, Tirupur, Salem, Palladam, Karur and Erode. Tamil Nadu has around 3,50,000 power looms manufacturing cotton fabrics and accounts for about 30 per cent of India's export of textiles products. The Erode district in Tamil Nadu is well known for marketing of textile products of handloom, powerloom and readymade garments.

The Textile Industry of Tamil Nadu has a significant presence in the National and State economy. It is the forerunner in Industrial development and in providing massive employment in the State. Handloom, Powerloom, Spinning, Processing, Garment and Hosiery are the various sectors of the Textile Industry in Tamil Nadu. It is the largest economic activity next only to Agriculture in providing direct and indirect employment. Handloom Sector occupies a place of pride in preserving the country's heritage and culture and plays a vital role in the economy of the country. It has a long tradition par excellence in its craftsmanship. The Powerloom Sector in Tamil Nadu has also been playing an important role in meeting the clothing needs of the people. The Powerloom Sector in Tamil Nadu is next only to Maharashtra in terms of number of looms. The Textiles Sector in Tamil Nadu is predominantly in the private sector, spinning oriented and labour-intensive because of the preponderance of the decentralized sector in most of the segments of the industry. The Textile Industry has a very important role to play in the industrial field with regard to employment potential, overall economic and commercial activities. This Industry enables the Central and State Governments to earn substantial revenue besides foreign exchange through exports. During the year 2004-05, 3223.52 million kg of yarn was produced in the country, of which, Tamil Nadu contributed 1261.98 million kg of yarn. Successively this State is the number one producer of various varieties of yarn in the country.

The Government should devise suitable measures to facilitate that the Textile Industry grows at the rate of 18 per cent per annum. The Government should also take efforts to address the labour laws related issues aiming at achieving the above growth. The required skilled labour force should be generated by creating new infrastructure and also by strengthening the existing ones.

Table 2.4 shows that number of textile mills in Tamil Nadu in the year 2003-04 and 2004-05. In Tamil Nadu organized textile mill sector has increased from 834 in 2003-04 to 835 in 2004-05. During the year 2003-04 Production of yarn was 1172.38 million kg and it has increased to 1261.98 million kg in 2004-05. Number of workers worked in textiles mills during the year 2003-04 was 2, 25, 000 and it have decreased during the year 2004-05 was 2,24,000.

Growth of the Textile Sector in the State

With the phasing out of quota regime, there is tremendous scope for the Indian Textile Industry in general and the State Textile Industry in particular to reap the advantages of post quota free regime. The State share of cloth production is 12000 million sq. metre (about 27 per cent) and is expected to reach upto 27000 million sq. metre. 16 new Spinning Mills have come up during 2005-06 with 6.20 lakh spindle capacity. Additional investment made in this sector alone was to the tune of Rs.5000 crore.

Likewise, 50 new garment units have been set up and around 300 knitwear export units have expanded their capacity. With an investment of about Rs.700 crore, these have created an additional employment to about 15000 people.

Under 'Technology Up gradation Fund Scheme ', 4383 projects were approved at the cost of Rs.33568 crore. The share of Tamil Nadu under the above scheme has been 22 per cent. The operation of the scheme has been instrumental in giving fillip to the growth of Textile Industry. However, as the scheme is going to expire by 31.3.2007, for the overall development of the textiles sector, the State Government has requested the Government of India to continue this during the entire XI Five Year Plan period.

TEXTILE INDUSTRY IN COMBATORE DISTICT

The third largest city of the state, Coimbatore, is one of the most industrialized cities in TamilNadu. It is known as the textile capital of south India or the Manchester of the south India. It is in fact the cause for the successful growth of cotton that served as a foundation for the establishment of its famous textile industry. The textile industry is the engine of Coimbatore’s economy. The first textile mill came up as far back as 1888 but there are now over a hundred mills.

The spinning mills in TamilNadu account for about 35 per cent of the country’s installed capacity and produce about 40 per cent of India’s yarn, mainly cotton yarn. Coimbatore district alone accounts for about 13 per cent of the spindleage in the country of about 1,500 spinning mills in the organised sector in India, nearly 800 are in TamilNadu is supplied to the powerlooms in TamilNadu, which have grown rapidly in number in the last two decades, and those elsewhere in the country.

Profile of the Textile Companies in Coimbatore District

Amarjothi Spinning Mills Ltd

Incorporated in Dec.'87, Amarjothi Spinning Mills (ASM) was converted into a public limited company in Dec.'91. It was promoted by the Amarjothi group of Tirupur. Mr. N. Rajan is the Chairman of the company. ASM went public with its maiden issue in Jan.'93 to part-finance a spinning mill to manufacture cotton yarn (installed capacity 12,096 spindles) in Pudusuripalayam, Tamilnadu. To meet part of the project cost, ASM issued secured NCDs worth Rs 2.20 cr on a private placement basis.

For cotton spinning, the company has adopted the ring spinning system. The company has installed the latest textile machineries including blow room, carding machines; draw frames, simplex frames and ring frames from Lakshmi Machine Works and autoconers with electronic clearers and automatic splicers from Schlafhrost (India). ASM completed its first full year of operations in 1994-95, after raising capital through a public issue.

In 1996-97 the installed capacity has been increased by 6016 spindles to 18992 spindles. Modernisation programme has been availed by the company to the tune of Rs.340.00 lacs under the Technology Upgradation Fund Scheme.During 2000-2001 the company had gone for expansion of Spindles to the extent of 4752 spindles. The status of the largest yarn producer in the country and a turnover of US $ 45 million have positioned us in the forefront of this industry.

Now a current capacity of 40.000 spindles, with 750 highly skilled laborers and 50 qualified management personnel, which results in annual production of around 4800 tons of yarn. Global business trade turnover US$45million per annum. Managerial Expertise is amply displayed by good performance in most parameters like rise in sales volume, exports, profits, timely payments on bank loans etc. Technical Expertise is demonstrated by successful introduction and supply of m�lange yarns, which requires lot of skills. Using various natural and synthetic fibers, The Company has offer clients a large variety of styles & shades, unmatched by any other yarn supplier.

A Spectacular track record is reflected in our excellent export performance. Amarjothi Spinning Mills Limited began exporting the products in the year 1995 and exports constituted around 30 per cent to 40 per cent of the total production at that juncture. Unparalleled selection of styles and shades has brought in clients from East and West, like European countries, Israel, Egypt, Turkey, Hong Kong, Malaysia, Philippines, Korea, China, Japan, Mauritius, Sri Lanka, the South African countries and the USA.

Ambika Cotton Mills Ltd

Promoted by P K Ganeshwar, M Rathanasamy and P V Chandran, Ambika Cotton Mills Limited (ACML) was incorporated as Ambika Cotton Mills Private Ltd on 6 Oct.'88 and subsequently converted into a public limited company on 5 Sep.'94.

ACML's plant located in Dindigul, Tamil Nadu, with an initial capacity of 6048 spindles, commenced operations in Jan.'90. In 1992, the company implemented its expansion plan to double its spindleage to 12096 spindles and the same was successfully completed in Mar.'93. ACML added comber machines to its production line and humidification systems in 1994, funded by SIPCOT through a term loan of Rs 90.86 lac. The company manufactures combed and carded cotton yarn of counts ranging from 30's to 40's.

During Jun.'96 ACML came out with an offer for sale of 15.15 lac equity shares of Rs 10 each for cash at a premium of Rs 68 aggregating Rs 1181.70 lac to part finance its expansion plan to increase the existing capacity by 9072 spindles to 21168 spindles and modernise its process by installing an autoconer. It has already commissioned the expansion project. ACML plans to instal four more autoconers to enable it to export 100 per cent production.

The company commenced a modernisation cum balancing scheme envisaging modernisation of Unit-I and addition of certain balancing equipment in Unit-II at an estimated cost of Rs.1, 370 lakhs. The total programme had been assisted by a Term Loan under TUFS to the exten of Rs.1050.00 lakhs by IDBI.

Gangotri Textiles Ltd

Incorporated in Jul.'89, Gangotri Textiles went public in 1992. It was promoted by the Jagannath group started by Manoj Kumar and Ramesh Kumar Tibrewal. The company manufactures yarn basically from 4s to 20s counts. Its products are used for making denim cloth, dhurrie, coarse cloth, terry towels, etc.

The company came out with a public issue in Jul.'94 to finance the cost of the project for increasing spinning capacity for open-end yarn from 768 rotors to 1152 rotors. Having achieved 100 per cent capacity utilisation, the company decided to put up a second unit with 7 open-end spinning frames with all the required facilities at a different location. The project was completed in Mar.'95.

The company has adopted open-end spinning, a state-of-the-art technology in spinning coarse count yarn. The benefits derived from this technology are of better quality, increased production and lower cost compared to the conventional technology using ring spindles. In 1995-96, the company increased the installed capacity of cotton yarn by 576 Rotors.