Textile Mills

One of the most intriguing and relatively undocumented developments of the last 20 yrs has been "multi-plants," whereby a single firm operates not one but multiple production facilities within a state

The Ahmedabad-based company's net profit rose 17% to 970 million rupees, aided by a sharp drop in expenses

As many as 100 smaller mills have suspended operations due to a shortage of good quality cotton, high fuel costs, and poor recovery of payments from buyers in flood-hit areas

They allege that the latter stopped supplies without reason, say that this could hugely impact export biz

The demand comes in the wake of closure of factories, wholesale and retail outlets due to the nationwide lockdown announced by the government on March 25

While the Covid-19 pandemic has completely halted production and new orders, exporters say that payments have also been delayed for the shipments sent before the lockdown.

State seeks make Solapur a major textile hub, is holding three-day fair in Bengaluru to rope in investors, offers cheaper power to units set up on its territory

The profit margins of textile mills improved during the second quarter (July-September) of the current financial year. Input costs were low, driven largely by a fall in cotton prices.Leading players Welspun India, Trident and Vardhman Acrylic reported emphatic growth in turnover and net profit, as did Raymond and Surat Textiles.Welspun India, for example, posted 21.4 per cent growth in net profit at around Rs 1.217 billion, over the same period last year. Sales grew 11 per cent, to Rs 17.8 bn. "Raymond's overall performance was above our expectations, driven by broad-based growth across divisions. Sales increased 16 per cent, Ebitda (operating earnings) by 36 per cent and net profit by 63 per cent, above our expectations. Management commentary was cautious on Q3 growth trends but it expects growth to improve from Q4, due to the wedding season. While Raymond has maintained its 100 basis points (bps) margin expansion guidance (estimate) for the year, we believe that upsides are likely, .

Industry is banking on the textile ministry's move to boost cotton procurement