Textile Machinery Spare Parts Growth Opportunities
Kaizar Mahuwala, One of the youngest and visionary President of Indian Textile Accessories & Machinery Manufacturer’s Association and entrepreneur himself leading Gurjar Group – has shared their expert opinion on the current local & global affairs, market growth & growth opportunities for SME & MSME sectors. The contribution India provides in global textile market and the corresponding market share India receives from the global market. He also has shares his views on the challenges faced by Indian textile industry, textile machinery spare parts, govt. support on Textile Policy Extension and the strong impact of GST on the transition. Mr. Mahuwala keeps himself updated with the latest trends in textile machine spare parts industry and the potential of exports from India. He has very positive vision on influence of technology on procurement and supply chain in India for industrial machinery spare parts. See the details below…
How has been the progress of India Textile Machines, accessories and spare parts industry in India and abroad?
Global textile machinery market is witnessing tremendous growth buoyed by growing demand of textile & apparel market. It is forecasted to grow at a CAGR of 14.02% till 2020.
Indian has a share of 14% of world’s textile production and second largest exporter with 5.2% global share, 31% share in cotton yarn exports with India accounts 22% of world’s spindles, 9% rotors, 63% looms and 37% world area under cotton cultivation. Indian textile industry currently estimated at around US $ 120 billion is expected to reach US $ 230 billion by 2020.
The major manufacturers of textile machinery are Italy, Germany, Switzerland, France and China. One of the major trends in the Global Textile Machinery market is the growing number of technological innovations. The global market is divided into two parts i.e. Low cost manufacturing places like developing countries (Labor concentrated market) where cheap labor is available & high cost manufacturing places like developed countries where labor is expensive & more automation is needed to reduce operation cost.
The Textile Engineering Industry (TEI) in India is one of the five key Engineering Sectors responsible for the growth of the Indian economy. It consists of more than 1400 units, with a total investment of approx. Rs. 7800 crore. More than 80% of the units are SMEs. The total installed capacity is approx. Rs. 9100 crore. The industry provides direct/indirect employment to > 250,000 people. The TEI contributes greatly to the competitiveness of the Indian Textile Industry. It meets 45-50% of the demand of the Indian textile industry.
What are the challenges faced by industry? How is the impact of GST and the transition?
The major challenge in the textile machinery manufacturing industry is the lack of scale and technology, lack of presence in all sectors, lack of advanced textile education, lack of Semi skilled and skilled labours, lack of ecosystem to support innovations and lack of investment in R&D, except for the manufacturing units who have technical collaboration with reputed foreign companies. This dependence on borrowed technology and want of research has kept most of the sectors far behind in the standard and performance of the machinery produced except spinning machinery sector which is at par with international technology levels. This has resulted in the import of second hand machinery especially in the area of weaving & processing thus discouraging the advancement of technology in the manufacturing of similar machinery. India is still far behind in garment machinery technology and development. Competition from high tech machinery of European and South-East Asian countries is a real challenge to the very existence of this industry.
The introduction of GST has resulted in removal of concessions/exemptions for the textile industry which saw outrages and protests by various associations and players in the textile industry. Considering the intent of GST and peculiar manner of operation of textile industry, it may take slightly longer for textile industry to off-set the initial hiccups of GST and grow at a competitive pace. Since exports under GST would be zero rated, this would give a competitive edge to textile exports from India, which is facing a strong competition from Bangladesh, Pakistan etc. Hence, integrated textile companies should see this as an opportunity, as the advent of GST will spur the textile sector with major capital investments bringing the cost of capital down.
Can you tell us the emerging trends in Textile machinery spare parts and accessories industry Globally and potential for exports from India?
The global demand of textile machinery is rising due to growing demand of textile industry.
Today, textile machinery sourcing is majorly done from European countries, which is relatively costly. India is strategically located from most of major textile & apparel producing countries and India has good potential to explore global opportunities & tap global market. India has to first focus on exports to the neighboring countries, which are emerging as significant textile producers.
The launch of TUFS in India has created a demand for state of the art machinery eligible under TUFS. The domestic manufacturing industry, however, is still gearing up to meet demand for such machinery and resulted into large-scale imports of machinery. The dismantling of textile units in European countries coupled with liberal policy with regard to import of second hand machinery also encouraged imports of second hand textile machinery.
This scenario is completely opposite in China which has relied not only on machinery imports but has also simultaneously strengthened its own machinery manufacturing base by encouraging both the domestic investments and FDI. The Chinese machinery industry has focused on long-term technology introduction, joint ventures and scientific research thereby acquiring abilities to supply various textile equipment’s in the domestic and overseas market.
What is the impact of latest technology on procurement and supply chain for Textile machinery spare parts and accessories ?
“Technology” is vehicle to enhance supply chain competitiveness and performance by enhancing the overall effectiveness and efficiency of logistics system. The benefits that B2B e-commerce platforms can deliver are specifically targeted at some of the biggest drawbacks of the textile supply chain, such as ineffective sourcing processes, long procurement time, limited industrial information access, low supply chain visibility and bad communication among all business parties. B2B e-commerce is powered by digital technology, enabling ethical textile businesses to gain exposure and access to the global market in an easier way. New digital technologies not only reduce supply chain management costs, but also give them a place in a much more diversified textile industry.
What are the activities of ITAMMA and how it has benefited members?
ITAMMA – Indian Textile Accessories & Machinery Manufacturer’s Association established in year 1943 is celebrating its 75th Platinum Jubilee in year 2018, with its members strength of 450+ is committed “Towards Making Indian Textile Industry a World Leader”. ITAMMA serves members through desk research, representations to government, cluster development initiatives, export initiatives & events at national & international level like catalog shows, B2B, delegations, exhibitions, workshops, skill developments, lean management and CFC.
As entrepreneur you are heading Gurjar Group, can you share some information about your business as well?
Gurjar Group established in year 1956 has more than 45 years of experience in manufacturing of Nickel Perforated Rotary Screens and Engraving chemicals. Gurjar has introduced 3rd Generation NEO+ 135, 165, 195 and 210 mesh series. NEO+ range enables textile rotary printer to print highly sharp geometric designs, fine half tone and objects upto 1 pixel in size. The mesh 210 is Gurjar’s innovation and top of the range mesh available in the market enabling a printer to achieve photo print quality. Gurjar Photo Emulsion Gold quality gives screen engraving pin-hole proof upto 1 lakh meter and highly easy to engrave and strip. Gurjar offers complete print solution with special coating screens, Galvano screens, screens for wall paper printing, embossing, foil printing, glitters, and puff. Gurjar offers laser engraving, range of machines and spare parts, auxiliary chemicals and digital jacquard fabric.
KAIZAR Z. MAHUWALA
- President – Indian Textile Accessories & Machinery Manufacturer’s Association
- Executive Director – Gurjar Gravures Pvt. Ltd.
- Executive Director – Gurjar Images Pvt. Ltd.
- Co-Chairman – Textile Committee, Gujarat Chamber of Commerce & Industries, Ahmedabad
- Vice-Chairman – India ITME Society
- Past Chairman – Indo American Chamber of Commerce, Gujarat Branch
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