Tamil Nadu Textile Industry Shows Signs of Recovery
After two challenging years, textile manufacturers in Tamil Nadu are witnessing initial signs of recovery, driven by reduced inventory and increased demand.
Key Developments
- Yarn demand has improved over the past nine months
- Capacity utilization has increased, with smaller mills operating at 70-80% and larger companies at up to 95%
- Mills are selling their entire monthly output, with no surplus stock
Ongoing Challenges
- Profitability remains under pressure due to price disparity between domestic and imported cotton
- Rising conversion costs continue to impact margins
Investment and Modernization
- Mills with strong financials are investing in automation and modernization
- Focus on sustainability and value-added products, with one-third of spindles powered by renewable energy.
CREDITS: Linkedin
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