Monday, September 27, 2004

Back to the glory of textile industry

Come 2005, and you have Indian textile industry booming again. As per WTO norms, from Jan, 1st 2005 the quota regime is moving out and India will be able to produce and export cloth as much as its capactiy. Capacity will be the limit for India. Hence, we see textile companies lining up to expand there capacities.
Its also the same on the other side of the sea. Big brands like Marks & Spencer, Gucci, etc.. are trying to reach Indian consumers on a large scale. Don't be surprised if you find their retail outlets openup next to your doorstep.
To beat the competetion our Indian companies like Arvind Mills, Siyaram, Century Textiles have also started tightening there shoes and are also coming up with there own chain of stores, to give consumers the benefits of economies of scale.
Arvind mills will require an additional workforce of 20000 workers to cater to this demand. Since it will be dificult to recruit and manage the workforce of this size in such a short time, it has started tieing up with small ancillary units around its factory in Gujarat.
This whole activity will give new boost to the growth of Indian economy. IT industry is also bound to benefit from this turnaround of textile industry since specific enterprise software solutions will be required to manage business at this scale.
Companies like ICICI infotech have already brought one of its textile industry specific ERP solutions in the market.
But still a long way to go before we as a consumer see ourselves reaping any benefits.

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