Home textile gears up for big league wrap

As Dr P. Nayak, Director, Market Research, Textile Committee puts it, ‘‘The kind of investments that players, both organised and unorganised, are putting in will see the home textile contribution rise to 10 per cent of the total exports in 2005.’’

If figures are any indication, then certain categories in home textiles can help accelerate India’s position in the big run.

Terry towels — 31.10 million square metres in export size compared to 10.40 million square metres from China — is a segment where lot of Indian companies are growing fast.

Take, for instance, Alok Industries: 61 per cent of its Rs 580-crore capex programme for the post-quota period is being pumped into the home textile segment. Having forayed into the sector only last year, the company plans to ramp up its annual capacity of 6.25 million sheet sets to 10.0 million sheet sets.

Dilip Jiwrajka, Managing Director, Alok Industries, thinks the growth will be smoother if only the financial sector puts in more investments. ‘‘The mindset towards the textile sector in India needs to change,’’ Jiwrajka says.

Nayak, while pointing out that foreign direct investment (FDI) is yet to flow into textiles, adds that ‘‘FIIs are keen in investing in home textile firms, particularly those in bed linen and terry towels.’’ That said, the FDI for textiles approved during April-June 2004 amounts to just $0.89 mn.

Welspun is another company that is tightening its stronghold in home textile. The company — which has a stronghold in the production of terry towels with a 94 per cent export-driven revenue — has started consolidating its two in-house units, Welspun India and Glofame Cotspin Ltd, and plans to merge them by next year, post-regulatory approvals.

‘‘It will help us build a bigger home textile brand to meet international standards, better capital returns and reduction in annual cost of Rs 5 crore annually,’’ claims Rajesh Mandawewala, Managing Director, Welspun.

But Nayak thinks the excitement might just lie in the domestic market. ‘‘The domestic home textile market is much larger compared to the export market.’’

That, as they say, is another story.