Indian Texpreneurs’ Federation (ITF) has attempted to evolve a method to understand the yarn market.

“The lack of scientific data on yarn prices, demand trends and inventory pile up with the mills, forced us to undertake a survey to understand the market better. We did just that by conducting an online survey week-after-week for three yarn markets such as Tirupur (Hosiery Yarn), Ichalkaranji and Bhiwandi (Polyester Cotton and Polyester Viscose yarn) and shared the findings with group members.

“This exercise, coupled with the ‘Yarn Strategy Meet’ organised by the Federation every month (over the last four months), has helped the mills understand the market better,” Prabhu Dhamodaran, Secretary of the ITF, told BusinessLine .

Stating that mills have been able to derive great benefit from the said survey as it helped spot fast moving counts, counts in negative zones, stock position and the benchmark selling price, the ITF secretary said, “The feedback has been positive. Several mills have managed to fine-tune their production and marketing strategy and this is obvious from the swelling participation in the monthly yarn strategy meets.”

The Federation is now contemplating to extend this exercise for warp counts.

“We are also planning to conduct a survey to understand the raw material price. Today’s market dynamics requires such intelligence; it will help the mill sector to choose the right path because every decision on yarn sales will have a direct impact on the mill’s profitability,” he said.

A quick look at the market dynamics show that every textile cluster consumes different types of yarn, and there are at least 150 to 200 mills in each of the clusters supplying yarn throughout the year.

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