Textile firms eye value-addition to tap global mart

Against the backdrop of a growing global textile market, domestic textile players are gradually shifting their focus to more value-added products "� rather than sticking to the volume strategy only.

Until recently, 'volume' used to be the focus in the industry, but there is a change in trend of late with textile players realising the importance of going beyond that and do value-addition, thus giving equal attention to both the aspects.

"Our unit value-addition is definitely going up and domestic players are adding more value to the garments, which are being exported," said Shekhar Agarwal, chairman, Confederation of Indian Textile Industry (CITI). "The textile industry is definitely moving more towards value-addition," he added.

The change in local textile firms' strategy is reflected in the rising unit prices of the apparel they are exporting.

According to a US Department of Commerce data, the unit prices for US apparel imports from the country rose 5.42 per cent y-o-y during the January-May period.

It further states that the prices of cotton dresses in the category 336 were 28.7 per cent higher at $82.91 a dozen, which is higher than China's $63.12 and the average supplier price of $67.

Experts further said it was not only in the context of the US, the same was the case with the rest of the world "� particularly Latin America, Europe, Canada and Australia.

"We have to capture market shares in the rising global market. And, in order to stay competitive with China, value-addition is critical," Agarwal said. He expressed hope that "this change in outlook will not see any reversal".

However, sources in the Cotton Textiles Export Promotion Council denied that the country's textile sector is focusing "more on value-addition". They argued that could not be the case as, for the industry, both volume and value-addition were posting growth.

But, industry sources maintained there had been a conscious attempt by domestic players to focus more on value-addition.

"In the post-quota scenario, local textile players are getting more markets to explore and, hence, more choices. Also, the Technological Upgradation Fund scheme is helping them venture globally," they added.

In line with the current buzz on 'value-addition', Alok Industries Managing Director Dilip Jiwrajka had earlier shared views with Business Standard.

He had said, "As the demand for high-end products in the world market is growing, we have to cater to the changing needs for our worldwide customers."