Indo-Rama Synthetics CMD Om Prakash Lohia, in chat with Anil Singhvi, says unlock demand surge has improved situation

In a chat with Zee Business Managing Editor Anil Singhvi today, Indo-Rama Synthetics CMD Om Prakash Lohia said that for the past few years focus has been on cotton and synthetics was mostly being ignored. For years, export targets were not being achieved due to this reason. In last one year, Government has realized that if they need to improve the growth of local textile companies, they need to improve India’s export by concentrating on manmade Fiber. Therefore, PLI Scheme's focus on manmade Fiber will benefit the textile Industry. He added, World consumes 65% manmade fiber while India consumes 40% to 45% manmade fiber. Export from India constitutes 75% cotton and 25% manmade. He also revealed that the government wants to double the textile industry from Rs 140 bn to Rs 280 bn in next 5 years. This is the key reason government is focusing on technical manmade fiber.

#ZBizExclusive | अनलॉक में टेक्सटाइल सेक्टर में मांग सुधरी... #NewsParViews में इंडो रामा सिंथेटिक्स के CMD ओम प्रकाश लोहिया ने कहा, कच्चे माल के सप्लाई चेन में जल्द होगा सुधार#IndoRamaSynthetics #OmPrakashLohia @AnilSinghvi_ pic.twitter.com/yYqsrNOfyk

— Zee Business (@ZeeBusiness) December 7, 2020

Lohia added that export promotion council will be formed for technical textile growth. This will give boost to the textile industry going forward. Textile sector witnessed demand after lockdown measures were being eased in June. Demand in urban areas were weak as malls were shut, however, overall, the demand had been good. Lohia averred that export demand has been good and domestic demand has come to pre-Covid level or just a little bit lower. Demand for Synthetics has improved and it is currently at pre-Covid level. Supply chain issues are creating little problems to source demand for raw material. Imported raw material is not up to the mark but these issues shall be resolved in next couple of months.

Lohia said that the Government is trying to focus on improving issues faced by local manufacturing companies and improve their growth going forward. For example, there were many issues for sourcing raw material for Synthetics for past 4 to 5 years and also the import was not possible due to anti-dumping duty. Government removed the anti-dumping duty last year as they realized without the availability of raw materials, it is going to be difficult for the companies to grow as well as to do good business in local market and export market. 

See Zee Business Live TV Streaming Below:

The clearly indicates that thinking process of Government is changed under Aathmanirbar Bharat. Change in the mindset of the Government, to not levy anti-dumping duty will ensure that local companies will get boost and will deliver strong numbers. PLI Scheme will also benefit the industry and Government steps taken to ensure growth of local companies by helping them source raw material encourage companies to do good business going forward.