PLI For Man-Made Fibre, Technical Textile To Boost Sector's Growth RSWM CMD

Category: General

Country: India

About the key challenges being faced by the sector, he said skilled manpower, and raw material at globally competitive rates are something that 'we miss'.

By BW Online Bureau, 11 June, 2021.

Production-linked incentive (PLI) scheme for man-made fibre and technical textiles will help boost manufacturing, increase exports and attract investments into the sector, textiles firm RSWM Ltd Chairman and Managing Director Riju Jhunjhunwala said on Friday.

He also said the immediate need of the hour is to put synthetic textiles at par with cotton in the goods and services tax (GST) chain.

'The PLI scheme is what the sector needs. India today lags behind the world in synthetic textiles and this scheme would help.

'It will not only increase India's manufacturing capabilities but increase investment and production in the textile sector, too,' he said.

To promote exports of textiles products, he suggested the government to come up with an export scheme like DEPB (duty entitlement passbook scheme) in different forms.

'Exports are doing well because of a conscious call taken by global giants to limit their consumption from China. They are focusing to source from India, Southeast Asia, etc, and the effect of this is being seen in exports,' Jhunjhunwala added.

About the key challenges being faced by the sector, he said skilled manpower, and raw material at globally competitive rates are something that 'we miss'.

'The rise in prices of imported raw materials has also increased the prices of dyes. Government can help industrialists by relaxing the GST on fabric and dye imports.

They can also fix the pricing catalog for the imported raw material,' he said.

About the company's performance, he said its net sales stood at Rs 859.06 crore in March 2021, up 39.33 per cent from Rs 616.56 crore in March 2020.

'Our quarterly net profits at Rs 71.38 crore in March 2021 is up from Rs. 5.15 crore in March 2020...We have announced capex worth Rs 350 crore to be completed within 18 months. This would be used towards expanding denim capacity, melange yarn capacity, cotton yarn capacity and a major modernization of old machinery,' he added. 

(PTI)

Courtesy:
http://www.businessworld.in/article/PLI-For-Man-Made-Fibre-Technical-Textile-To-Boost-Sector-s-Growth-RSWM-CMD/11-06-2021-392859/