Textile 28-09-2021 Hits: 2915

Tamil Nadu (India) has 40 textile and apparel firms interested in going public

Textile 28-09-2021 Hits: 2915

Apparel

Textile 28-09-2021 Hits: 2915

28th September 2021, Mumbai:

Around 40 textile and garment firms in Tamil Nadu are considering an initial public offering (IPO) to list their stock on the Indian stock exchanges.

The aggregate market capitalization of listed businesses in the Indian textile and apparel sector is just Rs. 2.2 lakh crore, whereas the market capitalization of Indian stock markets has surpassed Rs. 240 lakh crore. Simultaneously,

Indian capital markets are expanding at a quick rate, and the textile sector is attracting a lot of investor interest and attention, with values rising upwards.

Coimbatore-based Indian Texpreneurs Federation (ITF) undertook a study of 257 member firms with a total annual sales volume of Rs 36,000 crore.

Manufacturing units from all throughout the value chain took part, including spinning, semi-integrated, integrated, weaving, clothing, processing, and home textiles.

In this poll, 16 percent of firms stated they are interested in going public. Furthermore, 30% of the entrepreneurs stated that they are confident in doubling their existing sales in three years with a 25% CAGR, and 18% stated that they would double their current sales in four years with a 20% CAGR.

36% of the entrepreneurs stated that they will achieve their goal of tripling yarn sales in 5 years with a 15% CAGR. The study also revealed that the textile and apparel sector in Tamil Nadu is betting on development with a focus on value addition.

The ITF, the state's largest trade association, conducted the poll to better understand the textile and apparel sector's growth ambitions in light of the favorable trend in the export market in the post-Covid global economic climate.

According to Prabhu Dhamodharan, Convenor, ITF, Coimbatore, 76% of the polled companies expressed interest in doubling their present company location in 3 to 5 years with a new CAPEX cycle.

Within the textile manufacturing sub-segments, home textiles, weaving, and clothing are seeing stronger development. This tendency would aid the textile business in Tamil Nadu in developing more value-added products.

According to the poll, 58 percent of entrepreneurs highlighted the next generation's eagerness to take the firm forward.

“Plus China” One opportunity in the export market for Indian players, Union Government structural reforms, renewed and new thrust from the State Government to support the manufacturing sector, funding availability with lower interest rates, and new attention from international buyers towards Tamil Nadutextile eco-system due to its inherent strengths are the major reasons for such growth aspirations,” says Prabhu.

He added in a statement that organizations like the ITF need to build new platforms to promote new trends and dynamism with a collaborative approach to match the ambitions and views of the younger generation to encourage the less interesting segment to new economic prospects as well.