Revival In Textile Sector To Benefit Express Cos

Several industries are anxious to see a revival of fortunes in the domestic textiles trade. The express industry is a surprise beneficiary in the rising trade in readymade apparel and the fashion segment.

Growth in the express industry is being driven by the import of low-priced, but high-volume products such as leather products and accessories including zippers, buttons and labels, and the subsequent export of finished products such as readymade garments and designerwear.

According to Mr Ramesh Natarajan, Head, Marketing, DHL Worldwide Express, the textile sector represents 30 per cent - 35 per cent of its business. Much of it comes from fashion accessories, which have to be imported from China and South-East Asia.

For Safexpress, a Rs 205-crore domestic supply chain and logistics company, the textile industry accounts for about 7 per cent - 10 per cent of its business. This is one of the four sectors that will power its growth this fiscal. So far, most of this business has been concentrated in Maharashtra, Gujarat, Karnataka and Tamil Nadu.

Mr Natarajan said most Indian exporters were unclear about the trade scenario post-2005, and DHL was making efforts to share its foreign operations experience with exporters.

In December 2003 - January 2004, it will host a series of seminars, with the Confederation of Indian Apparel Exporters; and, has sponsored a KSA Technopak study on the implications of the post-quota scenario for exporters. Mr Natarajan said the exercise was geared towards bringing exporters and fashion designers on to a common platform. Indian designers were keen to expand their sales volume, and exporters could provide support and expertise.