CHENNAI: The outstanding investments in textiles projects in the four southern states and Puducherry added up to at least Rs 6919 crore at the end of first quarter of 2009-10. These include investments on existing projects and those which are planned and under execution.
Andhra Pradesh topped the chart with an estimated investment of Rs.3379 crore followed by Tamil Nadu ( Rs. 3165 crore), Karnataka ( Rs. 270 crore) and Kerala’s Rs. 106 crore. Thus AP and TN - account for around 95% of total investment, according to the quarterly update of Confederation of Indian Industry ( CII).
The report said thanks to the decline in input costs, selling and administrative costs, and modest growth in sales, the financial performance of the listed textile companies in the region showed a 1.7% increase in operating income (OI) at Rs. 1988 crore during April-June 2009.
It said India’s fabric production increased by a modest 2.7% in Q1 this year mainly driven by a 11.4% year on year (yoy) increase in output of decentralised hosiery sector.
Other sectors also reported modest increases in production—2.1% for mills, and 0.4% for power loom sector. Although yoy production growth rates of textile and clothing products have declined sharply recently, a moderate recovery was witnessed in the first quarter.
Due to sharp Rupee depreciation, India’s textile & clothing (T&C) exports increased 8.1% to Rs. 96300 crore in 2008-09. However, exports in US$ terms declined 5.4% during the same period to US$20.94 billion, representing the first decline since FY02.
Overall in rupee terms, product-wise export trends indicate a significant growth in export of ready-made garments, accompanied by a decline in cotton, and cotton yarns/fabrics/made-up, attributable to a sharp decline in raw cotton exports to China.
Source : The Economic Times