Filatex India plans to Invest INR 400 Crore for its Capacity Expansion
Published Date | 2019 March 14
Filatex India eyes to install 30MW captive power plant, in Dahej to reduce the energy cost of polyester yarn production that will eventually drive the Textile Industry Globally
India: Filatex India polyester yarn manufacturer plans to invest around INR 400 crore for expanding the capacity of its plants in Dadra and Dahej, besides setting up a captive power plant to reduce the company’s energy costs. However, the Delhi-based company has reserved INR 275 crore to augment the yarn manufacturing and polymerization capacity of the plants from 3.28 lakh MT per annum to 3.65 lakh by the next year. The environmental clearance for the plant is in the advanced stage. The 30-MW captive power plant, with an investment of INR 145 crore, in Dahej would be operational by 2020. The company also exports the manmade yarn to 34 countries globally and has in the pipeline a fabric plant to make fabrics from the yarn it produces. The yarn produced by the company is used for the manufacturing of carpets, rugs, tapes, ribbons, and zippers. According to BlueWeave Consulting, The requirement of polyester filament yarn (PFY) is increasing rapidly as it is the chief substitute for cotton. Also, the widening price differential between cotton and polyester and growth in the use of non-cotton spun yarn and fabrics will drive the demand for polyester in Textile Industry. Moreover, India’s textiles sector is one of the oldest industries in the Indian economy dating back several centuries. The textiles market is expected to witness growth on account of the growing consumption of apparel. The major driving factors for the growth are raising per capita income, favorable demographics and a shift in preference to branded products to boost demand. The ability to accomplish different technologically advanced functions has resulted in various technological innovations in smart textiles in the electronics manufacturing sector. This factor is expected to remain as a key influencing factor for promoting the textile market over the projected period. With the Falling cotton prices in India warehouse has increased, and are expected to remain a favorable factor for textile manufacturers supported by the rising importance of produced wool via non-mulesed methods, is projected to increase the access of raw materials. The Indian textiles industry is extremely diverse with multiple hand-spun and hand-woven textiles sectors at one end of the spectrum, with the capital intensive sophisticated mills sector at the other end of the spectrum. The close link of the textile industry to agriculture (for raw materials example cotton) along with the ancient culture and traditions of the country in terms of textiles make the Indian textiles sector unique in comparison to the industries around the world. Furthermore, a growing number of fashion retail outlets and supermarkets in developing economies, owing to government support to promote investments is expected to increase the textiles demand in the near future. According to the upcoming report by BlueWeave Consulting on “India Textiles Market, By Raw Material (Cotton, Chemical, Wool, Silk), By Product (Natural-Fibers, Polyester, Nylon), By Application (Household, Technical, Fashion & Clothing), By Region (North, South, East, West), Size & Forecasts, 2019 – 2025,”- Indian textile industry is one of the largest industries in India. In order to enhance the goal of making India’s development inclusive, the central government is focusing on various policies in providing best manufacturing and infrastructure to local artisans, technology, and innovation, enhancing skills and strengths of the local industry. The future for the Indian textile industry looks promising, lifted by both strong domestic consumption as well as export demand. With the rise in consumerism and disposable income, the retail sector has experienced rapid growth in the past decade backed up by the entry of several international players like Marks & Spencer, Guess and Next into the Indian market. High economic growth has led to a rise in demand for products creating a huge domestic market.