Textile units get IT savvy

INVESTMENT: Indian textile businesses are increasingly investing in IT infrastructure.

The textile sector's ambition to touch the $85 billion mark by 2010 may not fructify, if it lags in using technology.

But an increasing number of owners of textile units believe that IT is not only essential but indispensable.

Given that more than 85 per cent of the industry consists of small units, the rising trend of textile units going in for IT-related infrastructure is a positive sign.

"It's difficult to carry on without IT-related infrastructure in textiles operations. In our factory, all the machinery is automated," said S G Vyas, managing director, Jagjanani Textiles, a Jaipur-based firm. "IT components account for almost 10-15 per cent of the total investment on textile machinery," he said.

Online quality monitoring has helped Jagjanani cut costs significantly. "By implementing ERP, we managed to cut costs in processing, which contributed to our bottomline," said Vyas.

Increasingly complex product mixes and longer processing sequences are intensifying the need for IT infrastructure. In composite mills (spinning, weaving, garmenting, retailing), these are becoming inevitable.

"We are investing Rs 5 crore in installing IT equipment with the help of IBM. Within a year, our plants will be connected through ERP systems," said K.C Agarwal, joint executive president, Sutlej Textiles and Industries.

ERP helps a business manage key functions such as product planning, parts purchasing, maintaining inventories, interacting with suppliers, providing customer service and tracking orders.

Once the plant is equipped with ERP, everything is at your finger tips, added Agarwal. "With this, the senior management is aware of developments at different units, which helps us utilise our resources better," he said.

Adds Vyas, "IT helps in minimising inventories and maximising output. ERP simply gives straight access to data and the knowhow of various stages the process is in."

However, it is not only ERP, that textiles firms are interested in. Internet connectivity is another area which they feel can play a vital role in boosting the sector. At a time when newer plants are coming up in inaccessible areas, online connectivity becomes vital.

"IT infrastructure in textile firms is at a nascent stage. Though ERP is proving helpful for many units, broadband connectivity is equally in high demand. In its absence, online updating is not an easy job," said S K Saraf, managing director, Technocraft Industries. Manufacturing and processing require IT assistance, and more and more firms are going for it, he added.

Information technology can streamline processes by organising information from manufacturing, sales and finance, enabling data sharing for improved decision making.

Hyderabad-based Suryajyoti Spinning Mills has connected its plants with a network.

"So far, we don't have online connectivity. But in six months we will be connected online," said Arun Kumar Agarwal, executive director, Suryajyoti Spinning Mills. "It will help us increase our efficiency," he said.