Cyclical downturns lead Surat textile industry to stitch export dreams

Having struggled through several frequent cyclical downturns in the domestic market, the synthetic textile industry of Surat is now increasingly looking overseas.

The largest cluster of man-made fibre (MMF) textiles in the country, Surat was largely domestic market-focused with over 90 per cent sales. However, now the industry is looking at modernisation of different processes across the textile value chain even as it sniffs success amid reduced dependency on China among international buyers like Africa, Turkey and Europe, among others.

As an early sign of growing export potential, the industry recently held an exhibition for international buyers under the aegis of the Synthetic Rayon Textiles Export Promotion Council (SRTEPC) wherein the mmf textiles industry of Surat saw deals worth $150 million being finalised with additional $300 million being under process.

"Gradual efforts are being made towards modernisation in a bid to enhance exports. While those who can afford are investing on their own or by raising debts, others are waiting for a change in the technology upgradation fund scheme (Tufs) which could lead to even more expansion," said Dhiraj Shah, chairman, SRTEPC.

According to industry estimates, MMF forms 5 per cent of the total textile and clothing (t&c) industry worth roughly $140 billion and 15 per cent of total t&c exports worth approximately $40 billion. However, Surat, which is the largest MMF or synthetic textiles cluster in the country, comprising nearly half of the sector, has historically depended on the domestic market. While the Surat textile industry's size in terms of value could not be ascertained, the same stands at 40 million metres per day in terms of volume, 90 per cent of which is so far largely domestic market-driven.

"On one hand, international buyers have learnt during the pandemic to look for alternatives to China in mmf textiles as well. On the other hand, frequent cyclical downturns in the domestic market have also forced the industry to look overseas. And for this, capital expenditure and expansions have been increasing within the Surat industry," said Narain Aggarwal, managing director of Surat-based Prafful Group of Industries and former chairman of SRTEPC.

Although such export-oriented modernisation and expansion has now started taking place across the textile value chain in Surat, the industry is in need of government intervention for the same to happen in the processing vertical.

"Historically, the Surat-based textile processing industry has not only been price conscious and shied away from capex, it has also been limited due to pollution norms. Being a water intensive vertical with a lot of effluent discharge which needs to be treated, the textile processing sector in Surat will need clusters to be set up with the help of the state government for any modernisation or expansion. The industry has made a representation to the government regarding the same," said Aggarwal.

Meanwhile, other verticals such as weaving have been increasingly investing into machines that not only meet international standards but also produce finished goods at higher volumes in lesser time and cost.

Apparently, the share of modernised looms in weaving such as waterjet, rapier and electronic jacquard machines is gradually increasing in Surat.

"As against just 25 metres in 12 hours from a conventional loom, these modern machines can churn out 400 metres in the same period. Also, while the conventional ones can produce grey clothes which then need to be sent for knitting, processing and other job work before they can be termed finished goods, the more modernized ones roll out almost finished goods," said Babubhai Sojitra, one of the leading weavers and president of the Laskana-Kamrej Weavers' Association.