HomeNewsIndian home textile industry facing multiple headwinds

Indian home textile industry facing multiple headwinds

Indian home textile industry which was sailing smoothly till H12021 is now facing various headwinds, given the continuous escalation in input cost, logistic challenges, inflationary pressures, and a volatile global environment, which is putting untoward pressure on margin and demand.

With cotton prices doubling in the last 18 months, major economies are also facing high inflation and rising interest rates. Home textile manufacturers expect muted demand in the near term. In addition to this, destocking by retailers in the US, due to inventory build-up from the holiday season, has impacted volume growth in the home textile industry.

Meanwhile, leading home textile manufacturers are in the midst of capacity expansion plans. For example, Indo Count Industries has completed its spinning capex, while expansion in home textile to 108m meter from 90m meter is expected to become operational by 3QFY23. New capex of Rs 270 cr towards additional 68,000 spindles and value-added yarn products is expected to become operational by 4QFY23.

Trident has proposed a capacity addition of 98,496 spindles and 3,600 rotors in yarn segment. In the sheeting division, it is adding an additional capacity of 70,000 meter/day. The company has guided at a total capex of Rs 1380 cr for the capacity expansion, which is expected to be completed by September 2023.

However, Himatsingka Seide has deferred its debottlenecking plans by around six months as it foresees a reduction in capacity utilization in the near term, given the volatile environment, global conditions, and high prices.

Subscribe to our newsletter

To be updated with all the latest news from Sawdust

reports

moves

tenders

latest news