Textile machine makers may miss turnover target

Weighed down by the lack of government support, the Rs 2,500-crore textile machinery manufacturing industry fears it would miss the Rs 10,000-crore turnover target set for 2010.

"If the government supports us with schemes similar to Technology Upgradation Fund Scheme (TUFs) then the manufacturers, who are looking for new venues will get a forward push. Without the support, the target seems a herculean task," said Rajnikant S Bachkaniwala, chairman, Textile Machinery Manufacturers' Association of India.

However, with rising capacity utilisation, which has touched over 65 per cent compared with 30 per cent two years ago, industry seems optimistic to achieve a total turnover of Rs 3,000 crore, a rise of 20 per cent, in the current financial year.

Indian textile machinery sector, which is dominated by a few players, has an installed capacity of Rs 3,800 crore. The Lakshmi Machine Works, a leading player in the sector, has increased capacity to 3.5 million spindles, which it feels will be sufficient for the time being to meet the increasing domestic demand.

Though on the spinning front, the domestic machinery industry is strong, the weaving and processing sector is still at a nascent stage and is struggling to move forward.

"The biggest hurdle is improving our technology. We have not infused new technologies in the last couple of years and R&D-related developments are very poor," Bachkaniwala said.

There have been no new investments for setting up manufacturing units for weaving machineries, he said. There is an R&D centre at Indian Institute of Technology, Mumbai, but, "we will have to wait for a few more years to actually reap the benefits."

He added: "We do not see any phenomenal growth in the next 2-3 years. Though industry is growing at a rate of 30 per cent, it would be difficult to maintain this rate."