Overview of Textile Engineering Sector in India
The Textile Engineering Sector in India is a key capital goods industry with over 1400 units, majority being SMEs. It makes a significant contribution to the competitiveness of the Indian Textile Industry. The sector has technological capabilities in ginning, spinning, weaving, processing machinery, and more. An update on production, import, and export figures shows growth and performance over the years.
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TEXTILE ENGINEERING SECTOR Mr. Prakash Bhagwati Chairman, Textile Machinery Manufacturers Association (INDIA) Industry Meeting with Mr. R. K. Singh, Joint Secretary, DHI MOT 21st April, 2014, Udyog Bhavan, New Delhi
TEI AN OVERVIEW The TEI in India is one of the five key capital goods industries Consists of more than 1400 units, with a total investment of Rs.7,800 crore* More than 80% of the units are SMEs* Capacity is Rs. 9350 crore* Provides direct/indirect employment to > 250,000 people* TEI contributes greatly to the competitiveness of the Indian Textile Industry (TI) Meets 45-50% of the demand of the Indian textile industry* * (Source: Textiles Committee Survey & TMMA) 2
TEI TECHNOLOGICAL CAPACITY Ginning & Spinning In general, at par with international standard. Foreign manufacturers have their presence in India Capacity- Ginning - Adequate and there are exports Spinning- Meets over 75% of the requirement Items not manufactured - Auto Coner with auto feed and auto doff & high speed rotor spinning machine Weaving Preparatory At par with international standard. Enough capacity and production Weaving (Shuttleless Looms) Old technology Rapier Looms (Crank Beat-up - WIR 450-500mpm) New technology Air jet & Waterjet Looms (not tested commercially well) (WIR 950-1300mpm) New technology Rapier Looms (untested commercially) (WIR 650-800mpm) Synthetic Machinery All kinds of synthetic machines are produced such as Draw Texturising, TFO Twister, H.S. Winder etc. except fibre/filament manufacturing chemical plant 3
TEI TECHNOLOGICAL CAPACITY Processing Machinery Technology gaps exists Many hi- tech machineries are being manufactured for ex. Continuous Bleaching Plant, Dyeing Plant, Washing range, Preshrinking Range, Indigo dyeing Plant etc. Some of the special purpose machineries are not yet developed Existing capacity meets over 50% of the requirement Jute Machinery India is the predominant player with obsolete technology Parts/Components and Accessories Except some critical parts, most of the items are manufactured High speed cam dobby, electronic dobby and jacquard not manufactured Testing Equipment At par with international standard - Limited imports Items Not Manufactured High speed Garment making machinery & Knitting machinery Machinery for technical textiles and Non-Woven and Embroidery machinery 4
TEI An Update 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 E Production 4063 4245 6150 5280 5650 6250 Import 4411 4357 5000 7500 8558 9000 Export 614 556 883 1523 1462 1500 % Change in production 4% 45% -14% 7% 11% % Change in import -1% 15% 50% 14% 5% % Change in export - -9% 59% 72% -4% 3% All figures are in Rs. Cr
TEI - CAPACITY UTILIZATION CAPACITY UTILISATION OF TEXTILE ENGINEERING INDUSTRY 10000 80% 9350 9100 76% 9000 70% 8048 67% 8048 8048 8000 58% 62% 60% 50% 7000 (VALUE IN RS.CRORES) 6150 50% 53% 5650 6000 5280 5000 40% 4245 6250 4063 4000 CAPACITY 30% PRODUCTION 3000 20% % UTILISATION 2000 10% 1000 0 0% 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 E (YEARS) 9/15/2024 6
% OF DOMESTIC DEMAND MET BY TEI 14000 60 12812 56 11898 50 12000 48 50 10465 10000 9344 40 36 8062 37 35 (VALUE IN RS. CRORES) (PERCENTAGE) 8000 7251 7710 7409 6708 30 6000 5267 4750 PRODUCTION (Minus Exports) 20 4188 4077 3802 3757 3720 3689 4000 IMPORTS (less parts imported by machinery manufacturers) 3449 TOTAL DOMESTIC DEMAND 10 2000 % Share of Domestic demand met by TEI 0 0 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 E (YEARS ) 9/15/2024 7
TEI ISSUES Need to Encourage Policy to FDI for Capacity Expansion & Technology Up-gradation Address Fiscal Policy Constraints & Anomalies Unfavorable Import Duty Structure As there is nil duty on components for shuttleless looms as well as shuttleless loom itself. Reluctance of Scheduled Banks In financing even deserving MSMEs despite clear instruction from Ministry; adversely affecting modernization (term loans) and growth (working capital) of TEI. TUFS On /OFF Problem and lack of clarity. Used Machines Freely Imported With all TUF benefits available. 8
TEI ACTIONS Setting up of Common Facility Centre Near Bardoli, Surat, MOU had been signed Loom Development Project By consortium approach through CMTI Bangalore, consortium agreement signed Development of Jute Machinery Industry Assistance needed from Govt. Skill Development Programme Under the aegis of Capital Goods Skill Council - Under progress Proposing tie ups/Joint ventures With foreign manufacturers for fulfilling the technology gaps Statistical Research Study/survey of industry 9
PROGRESS ON GOVERNMENT SUPPORTED PROJECTS Approval of the CFC Project Total outlay of Rs. 48 Cr - Industry Consortium & an MOU is being signed for land & building. Approval of Loom Development Project Total outlay of Rs. 20 Cr Industry already formed a consortium & pooled Rs. 4.0 lakh, DPR submitted Technology Acquisition Fund Grant required from DHI, made available for filling tech gaps identified (Europe, not China) Statistical Research Access to DGCIS data on import & export (daily transaction data). Impetus from DHI For the Skill Development initiative & RRTUF Scheme Support Centre Jute Machinery Development & Training Centre Second Hand Import Define vintage, No TUFS, No 0 Import Duty. Introduce Scheme Similar to TUF For modernisation of TEI 10
Thank You 11
