Opportunities for Spinning Sector in Rajasthan

The spinning sector has grown widely in Rajasthan for many decades. In Rajasthan, Bhilwara has been a major centre for Poly Viscose suitings for synthetic and dress materials. It has transformed into such a centre where the required yarn is being produced in the Rajasthan state itself which is a prime market for poly viscose school uniforms and suit lengths. 70% of the polyester viscose dyed yarn capacity is in Rajasthan. Secondly, Rajasthan has a major export market, as well. The mills which had entered as a weaver have slowly ventured into processing and later on into spinning. That’s the reason Rajasthan has emerged as a core spinning centre.

In the preceding five years, Rajasthan has come up with various brown-field projects, i.e., expansions in the existing mills. Greenfield projects, i.e., developing a new mill, are very less. Almost all the mills in Rajasthan are expanding. There seems to be a boom in the textiles industry and probably India will emerge victorious in the future. The next three years are better, as everyone wants another place other than China, and the next best textile destination is India. The last 3-4 years saw very less expansion, whereby people could retire their debt, and reap good earnings. Now with their very strong balance sheets, they can take the boomerangs.

The state of Rajasthan is quite peaceful in terms of law and order, and so it becomes important for the textile industry to duly maintain its ecosystem. The market is good, as Bhilwara has now become the 2nd largest producer of denim after Ahmedabad in India, producing 2 crore meters per month. And 96 crore meters of fabric per year is produced from Rajasthan. Rajasthan has a readily available market for spinning, weaving, and processing. The mills have a consumer base for their yarn and the export numbers are high as well, so people are expanding spinning in cotton as well as synthetic. The reason is Rajasthan is a cotton growing belt where the raw material is also available locally and also from the nearby states. With all these factors put together, expansions are done mostly in cotton as technological developments took place in terms of productivity.

Government Policy for the Spinning Segment

The major and stimulating new government policies encourage the growth of the spinning industry in Rajasthan. Under the Rajasthan Government’s RIPS policy, a special textile package is offered whereby the mills are given an interest subsidy for 7 years. The Rajasthan Investment Promotion Scheme (RIPS 2019) is in operation till 2024. Under the scheme, the mills can avail of concession on stamp duty on setting up a new unit, electricity duty for 7 years, PF ESI benefits for 7 years, etc. The Government scheme promotes the textile industry as it provides larger employment avenues after agriculture.

Market Opportunities for the Yarn

With regards to yarn, in particular cotton yarn, Rajasthan is all across the globe. The mills export to around 50-60 countries. Similarly, for PV-dyed yarn, the major markets are Turkey, Belgium, and Brazil. The export potential is good coupled with a good setup. In the domestic sectors, for PV dyed yarn Bhiwandi, Dharapur, Bhilwara, Ludhiana, and Kolkata are encouraging. For cotton, the markets in Delhi and Tiruppur are good. The most preferred counts are the 30s and 40s, and also have fine counts. In synthetic, it ranges from 8s to 250s count PV dyed yarn and 65-35 PV for school uniforms, summer suits and formal wear.

Provisions for the Growing Skilled Manpower Needs

Manpower availability in Rajasthan is quite ample. The requirements are met by providing in-house training from time to time. They are trained in-house as they have been given on-the-job training, for about 3-4 hours in the classroom for about a week, and in the department for some practical experience.

Challenges of the Spinning Industry & Steps to Overcome

There are various challenges the mill owners face from time to time. In the textile industry, to stay abreast of the new technology, the mills have to modernize their existing machinery at regular intervals. To modernize, the mills require funds, which is achieved by maintaining the finest quality and productivity. The entrepreneurs running this huge industry are well aware of the same. If one is losing productivity and quality probably will suffer. It’s a basic principle for all. Everyone has to work hard because it’s the industry which has to be operated at an optimum level.

Steps to Strengthen the Mill in Rajasthan by the Association

The RTMA has been putting up various reports and memoranda to the Government of India, the Government of Rajasthan, and various committees and meetings, from time to time. The RTMA keeps in touch with the Government on how the mills can get power at a cheaper rate. Rajasthan has a huge base for Solar and Wind power. A requisition that power can be made available at Rs. 5.50 per unit, which is now around Rs. 6.30 per unit for consumption of 1MW or below, has been put up for approval. As there are lots of expansions coming up in non-conventional energy (which is solar), we are trying to make mills sustainable on the power front, and the state of Rajasthan can prosper further.

The Directory

The Directory 2021 the 28th series – provides details about each member millin regards to investment, and consumption ofraw material, production, import, export, etc. along with the address, telephone, fax number and e-mail address of the offices and officers in Rajasthan and the country, related to the textile industry. Thus, it has become a good reference book for research and marketing of the goods and machinery relating to the textile industry.

The directory has been highly appreciated by both, the organizations finding a place in it and users. It is hoped that it will be received with an ovation, like its past numbers, by the industrialists, traders, Govt. departments, and researchers in the field of textiles.

Message to the Readers

The textile industry is expected to witness good growth in the near future. Mill owners can plan for expansions as and when they see the time and opportunity to do so. The three important factors of finance, power and manpower are in the favor of the industry and we should utilize them to the fullest.