subject: Spinning Out Of Crisis [print this page] Not long back, the spinning industry in Coimbatore was facing a tough time, largely due to the global economic recession. The impact of dwindling demand and lower sales were reflected in the poor revenue growth recorded by the SME spinning mills in the region during the recessionary period. The adverse effect of the recessionary pressures as well as rising input costs continued till the first quarter of the current financial year.
However, good times seem to be returning for the small-scale spinning mills in Coimbatore, with the fading of the recessionary gloom and early signs of revival being noticed. Improvement in the global trading sentiment and pick-up in the Western markets are providing a ray of hope for the yarn weaving and spinning units in Coimbatore.
Things looking better
SME spinning mills in Coimbatore are witnessing a rise in business enquiries and orders from overseas global buyers on account of the forthcoming festive season in the West. The increase in consumer spending on apparel in both domestic and international markets in the recent past has subsequently led to the increase in work flow for the spinning mills in the region.
Global buyers, who restricted heavy purchases and refrained from placing bulk orders to Indian textile exporters for over a year now due to the global economic deceleration, are now showing keen interest to spend on apparel, said S Ramaswamy, proprietor of Ramnarayan Textiles Ltd, a mid-sized spinning mill in Coimbatore.
Apart from resurgence in demand for apparel in the US, the UKand European countries, fresh orders from markets such as Japan, Middle East, Asia and China have also brought cheer to the small spinning mills in Coimbatore, which were severely impacted by contraction in orders.
With export markets beginning to pick-up, yarn prices have started to firm up and spinning mills are also planning to operate at full capacity in order to meet the resurgent demand, said Nitin Vyas, proprietor of Supreme Mills, a small-sized yarn agency in Coimbatore.
The rise in export activity is also expected to boost hiring by small-scale yarn weaving and spinning mills in Coimbatore. Moreover, with little support from the government in the form of technical assistance and extension of funds for technology upgradation, SME spinning mills are likely to witness higher growth in the ensuing quarters.
