Textile units across the value chain in Tamil Nadu — spinning to garment making — are seeing gradual improvement in orders and capacity utilisation.
According to Prabhu Dhamodharan, convenor of Indian Texpreneurs Federation, the average capacity utilisation across the value chain is 70%. Orders are up for both, domestic and international markets. In some segments, such as yarn and home texiles, export orders are higher. Apparel makers are currently executing the November season orders. In the domestic market, the retailers are yet to see a surge in demand. However, there is a pent up demand that needs to be met and the manufacturers are catering to it, he said.
The powerloom units at Somanur say that 80% of the looms are operating. “We get orders to run the looms for six days a week. Though our demand for increase in wages is pending, we cannot take it up now. We continue to execute the orders we get at the existing rates,” said Bhoopathi, a job working powerloom weaver.
On the apparel front, almost all the manufacturers in Tiruppur who cater to the domestic market, have orders for at least one shift. Workers are also available from the nearby district, say industry sources.
Manufacturers across the value chain are cautious and do not want to build stocks. They are also not going in for credit sales much. When the migrant workers return in full strength, the capacity utilisation is expected to go up. But, it remains to be seen how demand will increase after October and November, say the sources.
