The Hindu Business Line : `Chinese textile gear price quotes are machine-specific'

`But today China producers had jacked up their price, which means their prices are based on your specification, and this calls for Indian buyers choosing appropriate combinations before going with their indents to buy from China.'

Coimbatore , Jan. 26

THE Southern India Mills Association (SIMA), which had recently commissioned an internal study in association with the cotton textiles export promotion council (Texprocil) on technology/price competitiveness of the spinning machinery range offered to Indian market by China, is of the view that the price quotes for China machines varied and they are dependent on machine-specifics.

According to top SIMA functionaries, Chinese textile manufacturing companies are seen vested with good production technology and metallurgy. The technical features and performance of their machines from blow-room up to ring spinning applications were found satisfactory. But these machinery makers design their components for slow speeds (15,000/16,000 rpms) and they retrofit their machines with either Japanese or European made components for the buyers seeking higher technology or productivity. Their price quotes are, therefore, machinery-specific.

"We feel at that price, our own (indigenous) machinery are competitive both in terms of price and quality," said Mr S.V. Arumugham, Chairman of SIMA. He said that Chinese machinery companies had last year offered machines about 25 per cent cheaper to those offered by the domestic industry here. "But today China producers had jacked up their price, which means their prices are based on your specification, and this calls for Indian buyers choosing appropriate combinations before going with their indents to buy from China," he added.

SIMA had held a seminar on Chinese textile machinery for its member mills here. The association gave a broad view of its technical delegation's findings that visited China late last year.

The study covered five major spinning machinery manufacturers in China, which include Jingwei, Shanxi Hongji Industry, Shanghai Erfangji and Zhejiang RIFA. These companies constitute nearly 80 per cent of the ring spinning manufactured in China.

According to Mr V.S. Velayutham, former SIMA Chairman and Vice-Chairman of Texprocil, the China-made rowing machinery (speed frame) and combers are found good or even better at prices comparable with that of India. The import of machinery from China is being made selectively and in isolation, though two or three new textile projects are only planned with full project consisting of total Chinese machinery imports.

Mr Vijay Venkataswamy, another former Chairman of SIMA, felt that the import of Chinese machinery assumed its topic because there is compulsion to import today due to supply backlog from domestic machinery manufacturers. But, at the same time, one wondered how the technology of the imported machinery would stand out for future.

Mr Arumugham, who briefed presspersons on the seminar, felt part of the rush on the textile machinery front was on account of the limitation created by the deadline of the technology upgradation fund scheme (TUFS) on capital investment as the Government had set March 2007 as the outer time to close TUFS.

Mills are under pressure and they cannot wait indefinitely for machinery delivery by indigenous manufacturers and with this in view, SIMA has sought extension the operation of TUFS till 2010.

As for members desirous of importing Chinese machines, the SIMA chairman said unlike the domestic textile machinery makers, the Chinese machinery producers might be willing on variable prices depending on volume purchases and this gave scope for collective negotiations arranged under SIMA.

SIMA is ready to negotiate on its behalf of members if mills are willing to come with their machinery needs that may give price benefits.

It also wanted the Chinese machinery producers to come out with a uniform pricing policy. Chinese companies should also open up stores and spares warehousing, besides post-sale services in India to facilitate Indian buyers of China machinery.