Update: Sep 23, 2021 4:40 PM STI
Ahmedabad (Gujarat) [India], Sep 23 (ANI / NewsView): The technical textiles industry set to be the next sunshine industry for India Inc after the government announced production-related incentive programs.
The industry is expected to leap forward and could grow to the size of $ 5 billion in the next 3-5 years. The industry works in partnership with different ministries, research institutes and focuses on quality, costs and economies of scale to excel in exports by creating economies of scale.
On September 8, the government announced an incentive program to attract private investment in the labor-intensive textile sector, including 10 technical textile products. Under the production-related incentive program, the government will offer incentives of around Rs. 7,000 crore in man-made fibers and around Rs. 4,000 crore in technical textiles.
“Technical textiles is a capital-intensive, high-tech industry focused on R&D and innovation. The industry is steadily gaining ground in India and we expect a leap forward in the years to come after the government’s announcement. This will make Indian technical textiles competitive on a global scale by creating economies of scale and ensuring efficiency. The government has also launched a national technical textiles mission in the past to promote R&D efforts in the sector. PLI will help further by attracting investment in this segment, ”said Shailesh Mehta, Managing Director, Texel Industries Ltd.
The government’s announcement is expected to cover around 10 product categories in the technical textiles category. An incentive of 3% to 11% of annual additional income for five years will be provided to existing and proposed investments in the sector.
Founded in 1989, Texel Industries Ltd. is the pioneer of tarpaulins and geomembranes in India. The Company manufactures a wide range of geosynthetic textile products, including tarpaulins and geomembranes.
The company’s manufacturing plant is located in Santej, Gandhinagar, Gujarat, with an installed capacity of 9,000 tons per year. Management was successful in turning the company around and was able to regain stakeholder confidence with higher sales and profits, which resulted in its delisting from the BIFR in November 2016. For the quarter ended June 2021, the ownership of the promoter stands at 40.77% – an increase of 647 basis points from 34.3% from June 2020.
The company is further investing Rs. 29.92 crore in setting up a 10,080 MT facility for geosynthetic products in Kheda, Gujarat. The company has already deployed Rs. 14.73 crore in internal accruals and borrowing. After the completion of the expansion, the installed capacity of the company will double to over 19,000 MT per year. The company plans to increase to Rs. 12.49 crore of the rights issue which is open for subscription from August 31 to September 29. The proceeds from the rights offering will be used to finance the proposed expansion of the Kheda facility.
The company adds six new products to its product line to include metal wrap, wood wrap, tile underlayment, geotextiles, floating pond covers and a product to replace billboards flexible. These products will contribute significantly to the growth not only of sales. but the company’s profits. “
Geotextiles are going to be widely used in road construction and other infrastructure in the near future, as they reduce initial construction costs and reduce frequent repair and maintenance work. The Ministry of Textiles has also approved and advised state governments to use geotextiles in road and highway construction.
In addition, the flex currently used on billboards and billboards is not recyclable. Texel’s innovative product is a 100% recyclable alternative, which will replace the current flex used on billboards across the country. . The floating top cover is a cover for farm ponds and water tanks, which prevents a 30% loss of water by evaporation. Texel has already installed 100,000 agricultural ponds across the country for which this product can prove to be extremely beneficial, ”Mehta said.
India’s technical textile sector has rebounded very strongly after the unlocking of the COVID-19 crisis.
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