Textile units in the State are keen to invest to create new capacities or expand the existing ones, according to a recent study conducted by the Indian Texpreneurs Federation.
As many as 257 units with a combined annual turnover of ₹ 36,000 crore participated in the survey from across the value chain, including spinning, semi-integrated, integrated, weaving, apparel, processing and home textile units.
A press release from the Federation said 76 % of the surveyed firms said they were looking at doubling the current business in three to five years with new capex cycle.
“This shows a very positive and vibrant change in the business environment in the Tamil Nadu textile and apparel sector,” said Prabhu Dhamodharan, convenor of the Federation.
In the value chain, home textiles, weaving and apparel segments are showing better momentum in terms of growth.
The appetite for investment is driven by demand, profitability, and reforms by the Union and State governments. In the developed economies, spending has shot up and hence there is a surge in demand. Several buyers are looking for alternatives to China. What India needs is more production capacities, he said.
Several units are also looking at investing in renewable energy, especially solar energy, Mr. Dhamodharan added.
Further, 16% of the companies that took part in the survey were also keen to explore the IPO option. The Indian capital market is growing at a rapid pace and textile sector is also getting lot of interest from investors with valuations rallying upwards.
