Pandemic Impact: Spinning Can Industry Ready to Recover

Introduction ● The world might be showing early signs of recovery from the COVID-19 pandemic. ● In India, every major industry has suffered in a big way – and the textile and spinning cans industry has hardly been an exception.

Fibre exports & Sales are Recovering ● Comparing with first half of 2020 with 2021 the exports value of textile & apparel went down by 29%. ● The most encouraging news has been in the form of fibre exports, which has risen by ~80% on a YoY basis. ● Consolidated sales of textile products have nearly doubled (97% rise) between 2020 Q1 and 2021 Q1. ● The average EBITDA figure for the corresponding period has also risen by 7.5%.

Gradual Increase In Strategic Investments ● By using cutting-edge tools like robotic sewing, laser-cutting equipment etc. yarn-makers and spinning can manufacturers are making production cycles optimal. ● Technical transformation – through things like 3D printing and AI/ML applications – is also set to be the ‘new normal’ in the post-Covid textile industry operations. ● Manufacturers are striking up strategic partnerships with first-tier exporters and suppliers. ● Also, the role of blockchain technology applications is also growing in the fibre/yarn-making sector.

Tactical Strategies & Smart Collaborations ● Leading textile manufacturers are putting in extra effort to enhance their processing capacities and eliminate infrastructure gaps. ● Strategic partnerships are likely to pave the way for greater value additions and will maximise ROI levels. ●

Textile industry back to its high levels of production.

Rising Demand in Global Textile Industry ● ICRA has predicted ‘greater stability’ in the textile sector in 2022- with worldwide demand levels continuing to go up ● Revenues from cotton yarn spinning and apparel exports are set to grow at >20% next year. ● Greater demand will translate to a more competitive textile trading environment, and returns will be higher.

Expansion In the Scale of Textile Production ● Products that are relatively low-end, including essential products, are delivering maximum value for money ● The average export orders for the next couple of quarters are encouraging. ● To avoid losses and maximise returns yarn manufacturers and spinning can suppliers to scale up production only after analysing demand levels.

Rising of the Online Textile Industry ●

Online textile sector that has remained strong in the face of adversity.

● Online textile retailing growing in value in the foreseeable future. ●

While the textile industry as a whole gradually gets back to its feet, the online sector is likely to emerge as the gamechanger.

The Textile & Spinning can industry is on its way to recovery – and helpful governmental policies like ‘Make in India’ and the recently-announced ‘Production Linked Incentive (PLI)’ scheme are offering the much-required support.

- From an expert

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