Textile Industry Sees Poor Capacity Utilisation

During 2002-03, only the ring spinning segment’s installed capacity grew marginally by 0.98% to close the year at 36.10 million spindles. The open-end spinning and weaving segments’ installed capacity slid by 7% and 4% respectively, according to the annual report of the Southern India Mills Association (Sima).

The organised sector’s working capacity was not at all encouraging. Working capacity of ring spindles, open-end rotors and looms decreased by 3%, 11%, and 15% respectively. Working spindles were pegged at 25.40 million (26.29 million spindles), open-end rotors at 3.12 lakh (3.49 lakh) and weaving looms at 45,000 (53000). Observers refuse to press the panic button and maintain it is clearly a sign of consolidation and easing out of unviable and obsolete capacity that had for long plagued the
industry.

For the small-scale sector, the growth saga continues. Ring spinning capacity improved by 14% while the open-end spinning capacity grew by an impressive 25%. Installed ring spindles stood at 2.93 million against 2.53 million the previous year, while rotors capacity was estimated at 89,000 (71,000).

The report says the product mix of spinning and weaving mills is
changing. Data show that production of non-cotton yarn or synthetics registered a 14% growth to 319 million kg while cotton and cotton-synthetic blends fell by 1.58% to 2,177 million kg and 3.94% to 585 million kg respectively. During 2002-03, spun yarn production declined by 0.64% to 3,081 million kg.