Indian home textile industry headed for a robust growth

Mumbai, Oct 3 (UNI) Slapping of stringent ecological norms by their respective governments coupled with lack of cost advantages have compelled the home textile (which includes pillow cover, curtain, table cloths and others) production houses in the US and the European Union countries to close down their shutters and have received a red-carpet welcome to the Indian manufacturers.

It has given a big boost to the home textile manufacturers that are opening cent per cent export oriented units (EOU) in India to fill the vacuum created in the market abroad.

India is among the world's top three suppliers of home textile products which was growing at the rate of 30 per cent per annum in the international market. Almost 80 per cent of the USD 1.2 billion worth of exports from the country is shipped annually to the US and EU countries. Thus a robust growth is predicted for the country's home textile sector in the markets of the US and EU.

A study says that the global home textile industry, with the US and EU joined together, calculating to USD 30 billion, is anticipated to grow up to USD 70 billion. Besides, with US markets increasing at projected five per cent and the EU market growing at the rate of 10 per cent, they together stand at 70 per cent of the world's total home textile imports. The total exports of home textile products from India at present was worth USD 2395 million in the last financial year.

Mainly, there are four players in the country's home textile manufacturing sector with their global clientele which include Vapi (Gujarat) based firms like Alok Industries and Welspun, Gujarat Heavy Chemicals and Bombay dying enjoying more than 60 per cent of market share in the international market.

The latest to join is Mumbai-based Indo Count Industries Ltd (ICIL). The company, which is already present in the field of spinning unit project and electronics manufacturing sector, cent per cent home textile EOU was inaugurated in Kagal area of Kolhapur district by the Maharashtra's finance minister, Jayantrao Patil.

Talking to UNI, ICIL's CMD, Anil Kumar Jain, said, ''Right now India's share in the US home textile market was merely 4 per cent.

However, I hope it to grow up to 20 per cent in near future.'' Though the company has already invested Rs 220 crore for the plant, it has plans to increasse the figure to Rs 450 crore within next couple of years.

Talking about his market strategy, Mr Jain said, ''Initially, we will be selling our products through a chain of 25 retailers in the US including Wal Mart, Li Fung and Ikea. But we'll launch our own brands at the opportune time, he hinted.

The company has got healthy order position even before the beginning of the project. Elaborating it the director of ICIL, Mohit Jain, said, ''We have already booked orders worth 5 million USD in advance to supply our products in the US market and order worth USD 10 million are already in our hands.'' UNI KKD KU AW2053