1. TEXTILE ENGINEERING SECTOR
Mr. Prakash Bhagwati
Chairman, Textile Machinery Manufacturers’ Association (INDIA)
Industry Meeting with Mr. R. K. Singh, Joint Secretary, DHI MOT
21st April, 2014, Udyog Bhavan, New Delhi

2. TEI – AN OVERVIEW
The TEI in India is one of the five key capital goods industries
Consists of more than 1400 units, with a total investment of Rs.7,800 crore*
More than 80% of the units are SMEs*
Capacity is Rs crore*
Provides direct/indirect employment to > 250,000 people*
TEI contributes greatly to the competitiveness of the Indian Textile Industry (TI)
Meets 45-50% of the demand of the Indian textile industry*
* (Source: Textiles Committee Survey & TMMA)

3. TEI – TECHNOLOGICAL CAPACITY
Ginning & Spinning – In general, at par with international standard. Foreign manufacturers have their presence in India
Capacity- Ginning - Adequate and there are exports
Spinning- Meets over 75% of the requirement
Items not manufactured - Auto Coner with auto feed and auto doff & high speed rotor spinning machine
Weaving Preparatory – At par with international standard. Enough capacity and production
Weaving (Shuttleless Looms) –
Old technology Rapier Looms (Crank Beat-up - WIR mpm)
New technology Air jet & Waterjet Looms (not tested commercially well) (WIR mpm)
New technology Rapier Looms (untested commercially) (WIR mpm)
Synthetic Machinery – All kinds of synthetic machines are produced such as Draw Texturising, TFO Twister, H.S. Winder etc. except fibre/filament manufacturing chemical plant

4. TEI – TECHNOLOGICAL CAPACITY
Processing Machinery – Technology gaps exists
Many hi- tech machineries are being manufactured for ex. Continuous Bleaching Plant, Dyeing Plant, Washing range, Preshrinking Range, Indigo dyeing Plant etc.
Some of the special purpose machineries are not yet developed
Existing capacity meets over 50% of the requirement
Jute Machinery – India is the predominant player with obsolete technology
Parts/Components and Accessories –
Except some critical parts, most of the items are manufactured
High speed cam dobby, electronic dobby and jacquard not manufactured
Testing Equipment – At par with international standard - Limited imports
Items Not Manufactured –
High speed Garment making machinery & Knitting machinery
Machinery for technical textiles and Non-Woven and Embroidery machinery

5. TEI – An Update E
Production
4063
4245
6150
5280
5650
6250
Import
4411
4357
5000
7500
8558
9000
Export
614
556
883
1523
1462
1500
% Change in
production 4%
45%
-14% 7%
11%
% Change in import
-1%
15%
50%
14% 5%
% Change in export -
-9%
59%
72%
-4% 3%
All figures are in Rs. Cr

6. TEI - CAPACITY UTILIZATION

7. % OF DOMESTIC DEMAND MET BY TEI

8. TEI – ISSUES
Need to Encourage Policy to FDI for Capacity Expansion & Technology Up-gradation
Address Fiscal Policy Constraints & Anomalies
Unfavorable Import Duty Structure – As there is nil duty on components for shuttleless looms as well as shuttleless loom itself.
Reluctance of Scheduled Banks – In financing even deserving MSMEs despite clear instruction from Ministry; adversely affecting modernization (term loans) and growth (working capital) of TEI.
TUFS – On /OFF Problem and lack of clarity.
Used Machines Freely Imported – With all TUF benefits available.

9. TEI – ACTIONS
Setting up of Common Facility Centre – Near Bardoli, Surat, MOU had been signed
Loom Development Project – By consortium approach through CMTI Bangalore, consortium agreement signed
Development of Jute Machinery Industry – Assistance needed from Govt.
Skill Development Programme – Under the aegis of Capital Goods Skill Council - Under progress
Proposing tie ups/Joint ventures – With foreign manufacturers for fulfilling the technology gaps
Statistical Research – Study/survey of industry

10. PROGRESS ON GOVERNMENT SUPPORTED PROJECTS
Approval of the CFC Project – Total outlay of Rs. 48 Cr - Industry Consortium & an MOU is being signed for land & building.
Approval of Loom Development Project – Total outlay of Rs. 20 Cr –Industry already formed a consortium & pooled Rs. 4.0 lakh, DPR submitted
Technology Acquisition Fund – Grant required from DHI, made available for filling tech gaps identified (Europe, not China)
Statistical Research – Access to DGCIS data on import & export (daily transaction data).
Impetus from DHI – For the Skill Development initiative & RRTUF Scheme
Support Centre – Jute Machinery Development & Training Centre
Second Hand Import – Define vintage, No TUFS, No ‘0’ Import Duty.
Introduce Scheme Similar to TUF – For modernisation of TEI

11. Thank You