Having passed through tumultuous times, textile firms in Punjab are now seeing some recovery as export houses in the region have started receiving orders from overseas clients.
Especially after a not-so-happy fiscal year 2008-09 , which saw textile firms in Ludhiana and other parts of Punjab in the red owing to multitude problems including major export markets like the US and Europe grappling with the recession, weakening dollar and escalating cotton prices, the firms expect the current financial year to bring some hope.
Speaking to Business Standard, Ajit Lakra, president, Ludhiana Knitters Association, said textile firms in Ludhiana had started bagging orders from overseas clients, providing glimmer of hope to the industry. The global meltdown has extended a competitive edge to India due to limitations of other players in Asia.
China, India’s main competitor in the export market, has suffered as textile firms in that country operate on high capacities and are finding it difficult to operate in times of downturn.
The Indian textile firms, on the other hand, have the capability to operate on low capacities that could help them thrive in this recessionary scenario.
Also, the current political turmoil in Sri Lanka and Pakistan has made overseas clients put a check on their orders to customers in these countries. Therefore, whatever demand that is being generated is diverted to export houses in India.
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Lakra expressed hope that with the demand from the export markets reviving, exporters in Ludhiana could see a flat growth in the first quarter of 2009-10, as against a negative growth that they had registered in the last quarter of 2008-09.
Hardyal Singh Cheema, president of Northern India Textile Mills Association (NITMA) Punjab Chapter and joint managing director of Cheema Spintex, said it might take over a year to recover the loss incurred in the last few months.