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Powerloom Sector

The document discusses the powerloom sector in Tamil Nadu, which holds a 20% share of India's installed powerloom capacity but faces challenges such as outdated technology and financial stress. It highlights opportunities for modernization and integration into global value chains, while also presenting a case study on the Ichalkaranji textile cluster's transition to automation. The document concludes with policy perspectives aimed at improving the sector's competitiveness and sustainability.

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0% found this document useful (0 votes)
183 views22 pages

Powerloom Sector

The document discusses the powerloom sector in Tamil Nadu, which holds a 20% share of India's installed powerloom capacity but faces challenges such as outdated technology and financial stress. It highlights opportunities for modernization and integration into global value chains, while also presenting a case study on the Ichalkaranji textile cluster's transition to automation. The document concludes with policy perspectives aimed at improving the sector's competitiveness and sustainability.

Uploaded by

fsectioncot
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

Powerloom Sector in Tamil Nadu

THE GOVERNMENT OF TAMIL NADU


DEPARTMENT OF TEXTILES

Presented by

Gherzi Consulting Engineers Pvt. Ltd.,


C&B Square, 501 CTS 95A,
127, Carnival Cinema Building, Andheri East,
Mumbai - 400059

29th April 2025 Policy perspectives Page 1


CONTENT

01 Introduction

02 Global Weaving Industry & India

03 Challenges & opportunity

04 Case study

05 Policy perspective

Policy
Global perspectives
Trends Page 7Page 2
Introduction 01

The aim of today’s session is to provide a snapshot of the current situation and present a
blueprint for future

1
Present status:
TN represent 20% share in India’s powerloom installed capacity, sector facing
challenges

2
Opportunity: Scope for 2nd Ichalkaranji
(investment, production,exports,employment)

3 ... And what needs to be done (policies,incentives,programmes)

Policy perspectives Page 3


CONTENT

01 Introduction

02 Global Weaving Industry & India

03 Challenges & opportunity

04 Policy perspective

05 Case study

Policy
Global perspectives
Trends Page 7Page 4
Global Weaving Industry & India 02

5 components of India’s weaving industry highlight the strengths and weaknesses

1 Global weaving installed capacity

2 India weaving machines shipments

3 Structure of textile industry

India’s fabric production - segment


4
wise

5 Key clusters in India

Policy perspectives Page 5


Global Weaving Industry & India 02

India has been continuously investing in upgradation of weaving machinery showing


increasing trend towards shuttleless technology dominated by waterjet technology
World installed shuttle-less weaving machines capacity [‘000 numbers]
109 109 109 110 109
72 72 71 69 68 32 32 33
25 27
52 52 53 31 32 32 31 32
97
93 93 9 16 24
7 7 7

16 17 18 19 20 21 22 23 16 17 18 19 20 21 22 23
16 17 18 19 20 21 22 23 16 17 18 19 20 21 22 23
Western Europe Eastern Europe Vietnam
North America 1061
835 860 875 900 860 940 940
55
50 50 49 50 50 50 53 37 38 39 39 39 38 44 45

16 17 18 19 20 21 22 23 16 17 18 19 20 21 22 23 16 17 18 19 20 21 22 23
Turkey Pakistan China
243
211 76 81
160 40 45 47 43 45
116 125 125 125 34
17 17 17 18 16 18 24 26 23
16 17 18 19 20 21 22 23
16 17 18 19 20 21 22 23 16 17 18 19 20 21 22 23 Bangladesh
India
Africa 1'708
1543
1'331 1'373 1'308 1'413
1'160 1'292

56 56 56 57
53 53 53 53

16 17 18 19 20 21 22 23 16 17 18 19 20 21 22 23
South America Total Asia & Oceania
(incl. Pakistan, India, China, Vietnam)
Source: ITMF

Policy perspectives Page 6


Global Weaving Industry & India 02

India has been continuously investing in upgradation of weaving machinery, increasing


trend towards shuttleless technology dominated by waterjet technology
India: Imports of shuttle-less weaving machines (‘000 No of mc’s)

• Post Covid-19, the annual weaving machinery


N°mc’s
imports showed upward trend and touched a figure
Airjet Rapier+Projectile Water jet Total of 32 thousand machines by 2023
35
31.98

30
• All 3 technologies, airjet, rapier+projectile and water
26.23 jet, represents almost 1/3 share each
25

• Increasing trend towards shuttleless technology


Thousands

20.34
20
16.22
dominated by waterjet
10.03
15 12.84 11.46
10.48 11.178 10.78
6.57
10 7.95
6.29 3.25 7.08 6.74 6.83

5 3.365 3.119
2.515

0
2019 2020 2021 2022 2023

Source: ITMF

Policy perspectives Page 7


Global Weaving Industry & India 02

The Indian textile industry is structured in 3 major sectors with the decentralized
segment comprising a large number of MSMEs and being the largest in terms of
production and employment

• Man-made (synthetic fibre) producers


• Spinning mills
Organised mill sector • Composite mills
• Garment manufacturers

• Powerlooms
• Independent weaving units
Decentralized sector • Knitting and hosiery units
• Independent processing units
• Garment manufacturing SMEs

• Handloom weavers

Cottage industry • Khadi units

Policy perspectives Page 8


Global Weaving Industry & India 02

The unorganized sector present the largest segment (58%) whereas the share of
organized mill sector has remained below 3% of the total fabric production
India’s fabric production by type [bn m2]

Mill made Handloom Unorganised


Powerloom
Sector
Knitted Khadi,wool and silk • India’s fabric production reached 72 bn m2 in 2022
90
(Power loom sector) growing at ~1.3% CAGR
66 bn 72 bn 77 bn
80 m2 m2 m2 • The unorganized sector present the largest
CAGR: 1.3%
segment (58%) whereas the share of organized
70
mill sector has remained below 3% of the total
60
fabric production
• Based on a business-as-usual scenario, the
50
production is predicted to reach 77 bn m2 until
40 2026
44.5
30 38.9 39.8 42 41.8 58%
36.9 35.6 38.9
57% 58%
20

10

0 ~ 3% ~ 3%
FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2026

Note: 2020-21 onwards Gherzi estimates/projection Source: ASFI, TxC

Policy perspectives Page 9


Global Weaving Industry & India 02

India’s highly fragmented textile and clothing industry is spread over 20 major clusters

~ 20 key textile clusters


Punjab, Haryana, NCR
❑ Punjab and Haryana: Knits and
Ludhiana Knits
Hometex, Cotton Spinning (PES/Co)
Panipat Recycling
Hometex
❑ Bhilwara: Suiting, denim and cotton
West Bengal
textiles
Rajasthan
Bhilwara Weaving Kolkata Knits ❑ Gujarat: Surat- MMF textiles and
Ahmedabad- Denim

❑ Maharashtra: Tarapur- Suiting,


Gujarat furnishing and cotton shirting;
Surat MMF MP • Bhiwandi- Polyester/cotton fabric;
1’000 • Ichalkaranji - Cotton fabric
Ahmedabad Weaving • Solapur- Terry towel

Maharashtra
❑ Karnataka: Silk furnishing

Tarapur Weaving ❑ Tamil Nadu: Cotton Spinning, Knits and


Powerloom woven fabrics
Bhiwandi Weaving AP/Hyderabad
Ichalkaranji Weaving Hyd/Guntur Weaving ❑ West Bengal: Knits
Solapur Weaving
❑ AP/Telangana: Wovens
Tamil Nadu

Karnataka Tirupur Knits

Doddaballapura Theni Weaving


Silk,
Bangalore RMG Erode, Salem, Weaving
Karur, Thenkasi
Source: Gherzi database

Policy perspectives Page 10


Global Weaving Industry & India 03

India’s T&C industry,valued at US$ 176 Bn (Rs. 1412 Lakh Cr) and has been growing at 4% CAGR;
The industry output will have to be doubled to achieve the $ 350 Bn target by 2030.

India’s Textiles & Clothing Industry Output (US$ bn current )

250
A* $234 B*
234
bn

$350
350
200 193 bn
$176
176
bn
160 161 $154
154
bn
150 141 138 140 142 137
$112
112
bn
113
$176
176
100
bn

50 CAGR : 4%

2022-23 2029-2030

*A : Business as usual scenario ; B: Optimistic scenario to achieve Vision 2030


NB: 2029-30 forecast based on business-as-usual scenario
NB: Data is based on MOSPI National Accounts Statistics(NAS) Source: MOSPI

Policy perspectives Page 11


CONTENT

01 Introduction

02 Global Weaving Industry & India

03 Challenges & opportunity

04 Case Study

05 Policy perspective

Policy
Global perspectives
Trends Page Page
7 12
Challenges & opportunity 03

Challenges

▪ According to the annual report, 2018-2019 of Ministry of Textiles, there are 27.77
lakh powerlooms installed in the decentralized sector in India
▪ In TN, there are 5.68 lakh powerlooms (20% of total installed powerlooms)

• Outdated technology: Deployment of old looms, leading to low


productivity and quality issues.

• Fragmentation: The sector is unorganized with small units.

• Competition: From large composite mills, global textile

manufacturers (i.e. imports), and rising costs.

• Financial stress: Limited access to formal credit and finance.

Policy perspectives Page 13


Challenges & opportunity 03

Opportunities

• Focus on modernization (automatic shuttle-less looms).

• Shift toward value-added products (fancy fabrics, technical


textiles).

• Greater sustainability initiatives (eco-friendly processing).

• Integration into global value chains as Indian textiles look to


compete internationally.

Policy perspectives Page 14


CONTENT

01 Introduction

02 Global Weaving Industry & India

03 Challenges & opportunity

04 Case study

05 Policy perspective

Policy
Global perspectives
Trends Page Page
7 15
04
Case Study

From handlooms to high-tech: Ichalkaranji’s journey to automation: The unsung textile


cluster in Maharashtra is weaving change, pulsing with energy and ambition
ICHALKARANJI
(Manchester of Maharashtra)

Policy perspectives Page 16


04
Case Study

Ecosystem

• 25 spinning units

• The city has approximately 175 sizing units including from renowed
ICHALKARANJI
OEMS like Karl mayer etc
(Manchester of Maharashtra)

• About 80,000 power looms, 15,000 shuttle-less looms of European and


Japanese make. Production of 1.5 Cr fabrics per day- Rs 50 crore a day.

• Market for 2000 shuttleless weaving machines and 30 preparatory


machines yearly

• The presence of a qualified workforce and the level of technical know-


how and easy accessibility to the finest weavers of Ichalkaranji for
outsourcing and overall good social ambiance were among the factors
that influenced

• Italian textile major Tessitura Monti, Turkish textile maker 'Soktas',


Raymond Shirting invested near Ichalkaranji city.

Policy perspectives Page 17


04
Case Study

Ecosystem

❑ Market drivers:
ICHALKARANJI
(Manchester of Maharashtra)

• Ichalkaranji cluster is well developed for cotton-based


fabrics since 1980s

• Ichalkaranji cluster continues to grow as it falls under


unorganized textile cluster where State Govt. offers
support (i.e. power subsidy (which is key contributor to
operational cost for airjet technology) and other cluster
incentives).

• Cluster gradually shifting towards shuttleless weaving


machines due to increasing costs (Manpower and land)
and to meet quality fabric demand

Policy perspectives Page 18


CONTENT

01 Introduction

02 Global Weaving Industry & India

03 Challenges & opportunity

04 Case study

05 Policy perspective

Policy
Global perspectives
Trends Page Page
7 19
Policy perspective 05

Components of PowerTex India Scheme

PowerTex
India Scheme – 5.1 In-situ Upgradation Scheme for Plain Powerloom
modernization

Policy perspectives Page 20


Policy perspective 05

5.1 INSITU UPGRADATION SCHEME FOR PLAIN POWERLOOMS

Source: MOT Annual Report 2024

Policy perspectives Page 21


Questions or comments

Consultants to the industry since 1929

Gherzi reference: Birla Green Fibres


Policy perspectives Page 22

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