Economy

Indian apparel industry eyes collaboration with global suppliers of man-made fibre

Our Bureau Chennai | Updated on April 11, 2021

Indian apparel exporters are keen on a joint venture or technology transfer or 100 per cent investment   -  PTI

Tie-up will help them overcome supply shortfall and improve production quality

Indian apparel exporters are looking to collaborate with global man-made fibre (MMF) suppliers to overcome the supply shortfall in the country and improve domestic production quality.

Cotton-based apparels

Indian apparels are predominantly cotton-based. However, the bulk of the global demand is in the MMF segment. The global market for MMF garments is estimated at $500 billion, including $170 billion for sportswear. The share of MMF garments in India’s total apparel exports is only $1.6 billion, or about 10 per cent, whereas the world trade in MMF garments is to the tune of $200 billion.

A sunrise industry

The Apparel Export Promotion Council (AEPC) has identified man-made fibre-based garments as a sunrise industry due to strong demand in the domestic and international markets.

“As the Indian apparel industry seeks to grab a good share of $200-billion global man-made fibre (MMF)-based garment trade, India companies have sought help from international MMF suppliers to overcome the shortage of the fabric in the short run, and also to improve the quality of local production eventually,” said AEPC Chairman A Sakthivel, while addressing a webinar on ‘MMF Fabric Sourcing from International Suppliers’, hosted by AEPC.

India needs to import MMF from international suppliers to increase manufacturing in the country and for their export.

“We are also interested in attracting investments in fabric processing in the country,” he said adding: “India has abundant production of yarn, but is in short supply of good quality MMF fabric as domestic producers lack the latest processing technologies.”

There are production facilities in India, but do not have the latest technologies in processing. Indian apparel exporters are keen on a joint venture or technology transfer or 100 per cent investment. Meanwhile, the Indian government has also come out with incentives and initiatives such as establishment of seven mega textile parks to promote MMF production and textile exports.

“AEPC will make all arrangements to facilitate any technology transfer, joint venture or direct investment in India,” said Sakthivel.

MMF suppliers from China and Taiwan participated in the webinar and discussed their business and requirements from India.

Published on April 11, 2021

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