Indian companies have been urged to follow the example of Italy, which was the second largest exporter of textiles after China, and export high-value items.
Chennai, July 2
CARRERA Holdings Inc of Italy, the second largest jeans manufacturer in the world, has entered into a 50:50 joint venture with Picanol, the Belgian textile machinery major, to manufacture shuttle-less looms, branded Vinci, in Maharashtra.
Mr Vivek Jacob, CEO, Carrera Holdings Inc, said the company was investing about $250 million in India in various textile sectors. It was investing $30 million in a garment-processing unit and $50 million in the textile cluster in Sholapur.
The company planned to set up a futures commodity exchange for yarn and grey fabric. This mechanism would help reduce the risks faced by textile companies due to volatile raw material prices. The exchange would be ready by February 2006, he said.
Carrera would also be entering the retail sector and open a chain of 50 outlets in two years, Mr Jacob said.
In Tamil Nadu, the company planned to develop assembly units for textile engineering at Coimbatore.
Earlier, delivering the keynote address at a textile conference, Mr Jacob highlighted the need for students who fit into businesses to understand the limitations of resources in businesses. He said the big challenges ahead for the textile industry wereconsolidation and the recession in the US and Europe.
At present, there are only 10 companies that retail apparel and these retailers deal only with big suppliers. The question then asked is whether there is room for small and medium businesses. The answer, Mr Jacob said, is in textile clusters where there can be informal exchange of knowledge and resources.
He urged Indian companies to follow the example of Italy, which was the second largest exporter of textiles after China, and export high-value items. Mr Jacob said Indian companies were making the mistake of trying to churn out commodity products instead of high-fashion items.
Mr M.S. Mathivanan, Chairman, SSM School of Textile and National President, Textile Association of India, said the textile industry required a large number of trained human resource. At present, every year, just 2,000 students graduated in textile engineering from the 53 engineering colleges in India. Textile education in the country had to be modernised, he said.