Textile parks eye brand entry

The government is planning to promote textile parks sanctioned under the Scheme for Integrated Textile Parks (SITP) as suppliers of specific independent brands.

Of the 26 textile parks under construction across India, five export-oriented ones would be initially promoted as distinct brands, said Abhijit Som, assistance vice president, Infrastructure Leasing & Financial Services Ltd (IL&FS), after a workshop on the government schemes for the up-gradation of the textiles industry in Kolkata on Tuesday. IL&FS is the project management consultant for the textile parks.

"The move is aimed at boosting exports by linking big international retailers directly to the garment manufacturers for bulk purchases. There can a single brand for all the units of parks, or there can be a mechanism of co-branding. We are yet to decide on the modalities, and the project should be finalised in the next two-three months," he said.

The first such branding might be for the Palladam weaving park in Tamil Nadu, said Som.

The textiles sector accounts for nearly 17 per cent of country's exports. The total export from the sector in 2006-07 was $17 billion, a 22 per cent growth on the year-on year-basis.

Readymade garments account for 45 per cent of the total exports. By the end of the 11th plan period, the government aims to have a 7 per cent share in the global market for textiles' products, against 4 per cent at present.

"The European Union (EU) and the US markets provided good opportunities of growth for Indian garment manufacturers. The textile parks provides good export subsidies to the manufacturers in this regard," said N M Mugadur, joint textile commissioner, the Union ministry of textiles.

The textiles ministry would also recommend setting up more textile parks to the finance ministry for the forthcoming budget, he said.