The Hindu Business Line : German textile machinery industry bets big on India

The German trade body is seeking to step up efforts to enlarge the share for the Indian market, billed as the future potential market in the light of its importance as an alternative textile outsourcing point.

Coimbatore , Dec. 6

THE German textile machinery industry expects India to emerge the second largest buyer of German textile machinery after China in the near term.

At present, India is the fourth largest importer of German textile machinery at 108 million euros (Rs 583 crore) for the first half of 2005.

The US' and Turkey's imports are $173 million (Rs 796 crore) and 170 million euros, respectively.

China continues to lead Germany's table of machinery importers at 361 million euros.

"Going by the current surge in the export of German machinery to India, which rose by 30 per cent at 140 million euros in 2004 and by another 84 per cent during the current year, the VDMA (the trade body of the German Textile Machinery Association) has projected machinery import by India to touch 200 million euros and or even exceed that in long term," said Mr Ragnar Strauch, Director (export marketing) of VDMA.

Exports to China slowing down: The 130-member German textile machinery industry body says German textile machinery export to China is slowing down of late.

The body is seeking to step up efforts to enlarge the share for the Indian market, billed as the future potential market in the light of its importance as an alternative textile outsourcing point.

"The China market is going down, though this market down-turn might be limited for some time," he said adding that, of the total German textile machinery shipment of 1,755 million euros during the first half of this year, China's imports was 361 million euros - a 30 per cent negative growth; in spinning machinery alone the decline was 45 per cent compared to the previous year.

Whereas, India's import of spinning machinery this year is up 367 per cent to 52 million euros and the textile finishing machinery too has gone up 38 per cent to nine million euro.

Five years ago, according to Mr Strauch, the VDMA members' export to China stood at 500 million euro, and the downturn in China's import is partly attributed to the machinery demand hitting a plateau and the uncertainties caused by the import quota restrictions on China's textile exports.

Post-quota advantage: Indian's cotton-centric textile manufacture may continue to spincommanding capital investment, but its gaining importance as an alternative supply source in the quota-free textile trade, among sophisticated markets such as the US and EU, would demand India to enhance its production quality and product variations.

Further, India has to focus on upgrading its machinery as much as it does on creating new plants and additional capacities.

"The $54-billion export target set for India's textile sector by the Indian government would be a huge task, and the German textile machinery industry wants to participate in this opportunity," Mr Strauch said.

Tech symposium: VDMA is holding a two-day India-specific German textile technology symposium in Coimbatore from Tuesday.

This is the second one sponsored by the German textile machinery association after the 1996 meet in India.

The meet is aimed at updating the textile industry on the latest technology, covering spinning, non-woven, weaving, knitting and textile dyeing and finishing.

Around 36 textile machinery manufacturers and 40 experts will make presentations at the symposium.

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