Latest News on Faridabad/Gr Fbd, Balabhgarh & Palwal
View Single Post
April 30 2012 , 10:52 AM
Join Date: Jun 2011
Faridabad textile industry weave Growth; focusing more on exports
FARIDABAD: The textile industry has always been a key pillar of Faridabad's economy. Now, on the back of double-digit growth rate and high volumes trade, the industry keeps the local economy on a still stronger footing. The compound annual growth rate of 20 percent is proof that the industry is a key growth driver for Faridabad.
"This growth rate has been consisted in the past few years. The annual turnover is around Rs 1,200-1,500 crore," said SK Goel, president, Faridabad Industrial Association. Anil Kumar Bhatia, director, hindustan Silk Mills, began manufacturing and marketing suiting and shirting under the brand name 'Atul' 30 years ago.
"We took on manufacturing, retailing, supplying fabrics to exporters, home furnishing and technical textiles manufacturers," he said. The textile business of Faridabad is largely export-oriented. According to Sandeep Gupta, managing director, Gupta exim, "export contributes about 14 percent to the town's industrial production. It is estimated that Faridabad would increase its textile and apparel share in India's world trade to 8 percent (from the present 4.5 percent). The export sector needs support from the government."
There is an immense scope of increasing potential employment. "The industry employs around 20,000 people. It requires little more attention from the government because textiles is the largest contributor to the forex reserve of the country," Mr Goel observed. "We usually employ 12-16 people.
Monthly wages of our employee ranges from Rs 4,700 to Rs 25, 000 depending on qualification and experience," said Vikas Singhal, managing director, Delkon Textiles. "Our turnover in 1998 was `1 crore and it grew up to Rs 3.7 crore in 2012."
Mr Gupta said his company grew 21 percent last year and employed about 5,500 people. "The workforce contributes around 15 percent of the total sale and it works on the monthly wage of Rs 7,000 per month," said Mr Vijay Jindal, director, SPL Ltd. The textile industry is witnessing a ramp-up phase as textile companies in the industrial town of Faridabad are increasing their annual turnover.
"The export-oriented textile industry of Faridabad is enjoying the growth rate of 10 percent," confirmed Mr Jindal. "The size of the industry is about Rs 4,000-5,000 crore," he added.
According to Mr Gupta, the industry would be contributing about 15 percent to the economy of the city. Mr Bhatia said: "The garments industry in India comprises 75,000 units and employs about 5.5 million workers, out of which possibly 0.2-0.5 percent could be in Faridabad, both directly and indirectly in almost equal proportion."
However, the industry is facing a number of constraints. Mr Singhal said: "During the last seven years there has been a huge supply shortfall. To meet the delivery requirement, we have to keep gensets, which sometimes work up to 18 hours a day. This burdens us with heavy expenditure on diesel, thus dents our margins by almost Rs 1 lakh a month." infra problems Poor transport infrastructure comes next. "On the one hand, the condition of existing roads is poor. On the other hand, traffic has increased by almost 300 percent over the past three years, leading to massive jams. As a result, prospective customers avoid visiting our unit as it takes 90 minutes to reach here from Delhi," he added.
Despite these issues, Faridabad holds certain advantages, Mr Goel said. "Proximity to Delhi has always been beneficial. There are many apparel exporters located in Faridabad and Delhi. Besides, Delhi is a big supply centre for textile units in northern India."
Faridabad textile industry weave Growth; focusing more on exports - Economic Times
It is better to be blind than to see things from only one point of view
View Public Profile
Find More Posts by Designer