Companies

Solapur terry towel makers bullish on exports to US

Our Bureau Mumbai | Updated on September 06, 2019 Published on September 06, 2019

The ongoing trade war between the US and China and the subsequent slowdown in Chinese economy is expected to boost terry towel exports to the US, which imports about ₹22,500 crore worth the product every year.

India accounts for ₹5,200 crore of the US’ imports.

Recently, the US hiked duty on towel imports from China to 15 per cent, while it is 10 per cent on shipments from India. Of the overall terry towel sales, Solapur accounts for the lion’s share generating sales revenue of ₹1,200 crore from exports and domestic sales.

Boosting capacity

Rajesh Goski, President, Textile Development Foundation, said that terry towel manufacturers from Solapur are hoping to increase capacity with a target to grow their revenue to ₹5,200 crore by 2022.

The industry along with Co-operative, Marketing and Textile, Maharashtra and Global Network, an International Trade Advisor, will organise Vibrant Terry Towel Global Expo and Summit 2019 between September 25 and 27 in Solapur to bring cotton growers, manufacturers, traders, exporters and importers under one platform to harness market and export opportunity.

Global buyers will negotiate with shortlisted Maharashtra suppliers directly. “We have a better chance as our product will now be cheaper for importers from the US. Our labour cost is also cheaper compared to China,” he said.

India is the third largest home textiles market in the Asia-Pacific and estimated to log world’s fastest at CAGR of 7.2 per cent to touch $5.6 billion by 2020. Bed linen and spreads accounts for 58 per cent of the Indian home textiles market and will touch $3.3 million by 2020.

Published on September 06, 2019
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