Textile company scrips are back in the reckoning on the bourses after years of neglect.
Thanks to buoyant export demand in both the cotton and man-made fibre categories, the markets are rerating textile scrips.
As with most other commodities, the driver this time also is China. China has a yarn production of around 5,000 million kg per annum and it is moving up the value chain into manufacturing fabric for re-export. Following this, it is expected that China will have to import/ outsource most of the requirements. Even assuming that at least 40 per cent of its demand is imported, the resulting offtake will equal India
