Spruce up or lose out is the writing on the wall

Tough times ahead for Surat textile industry

Surat has earned the sobriquet of Textile City not for nothing. It is the hub of the Indian textile industry, and has a played big part in making Gujarat an industrially vibrant state.

But of late, Surat's textile industry has witnessed a slump. According to the industry watchers, a major overall change is needed if the textile industry has to survive and face the challenges of a liberalised economy.

Talking to Business Standard, an industry expert said, "The mind-set of Surat's textile businessmen is 'chalta hai wahi banao' (produce only that sells). The industry was doing pretty fine till now with this mind-set, but if there is no change, the industry could land in serious trouble in the coming years."

"So far, the textile industry was looking only at the domestic market, but the market has reached a near-saturation point. There is an urgent need up the socks and start exploring and diversifying, if it has to survive," he added.

"At present, Surat's textile industry is mainly involved in production of sarees and dress materials. The suiting sector has remained virtually untouched, with negligible production in Surat. There is a lot of scope in the suiting sector and it is high time Surat's industry starts looking at it," an expert said.

Another expert said that the textile industry needs to realise the differences between domestic and international markets. "All that is manufactured in Surat can be sold in the domestic market. It is not the quality, but pricing that matters in India. But this is not the way things work out in the international market.

"Providing good quality is the foremost requirement in the international market. The mind-set of Surat's textile industry is highly influenced by the domestic market and it has become more price-oriented, rather than quality-oriented. The textile industry has adopted a defensive or negative attitude. Nobody wants to take risk. This needs to be changed as success cannot be achieved by making compromises. The industry has to start thinking big.

"At this juncture, textiles produce from Surat are exported mainly to the Gulf countries and the African nations. The industry needs to start eyeing the European and American markets, where its presence is almost zero," he added.

Another industry expert said that the industry needed to adopt latest technology. "Technology-wise, Surat's textile industry is way behind many other countries. The industry still uses the technology and equipment, which are no longer used in China and other leading textile producing nations. This is because technology comes for a price, which our industry cannot afford, as it is only interested in the domestic market."

"International markets offer a great potential for the textile industry. But to grab those opportunities, the textile industry needs to come out of its shell and start taking risks. Latest equipment and technology are a must for the industry to make it's presence felt at the global level. The industry should not be content with exporting low-quality goods to Bangladesh or other countries, and start exploring new possibilities," he said.