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Grasim aims 20% rise in textile exports post-MFA regime

Our Bureau

New Delhi , July 20

THE Rs 250 crore-Grasim Suiting is looking at a 20 per cent jump in export volumes following the phase-out of the quota regime from January 2005. "There will be a big boom in textiles post-MFA (Multi-Fibre Agreement). We are expecting a 20 per cent increase in exports once textile quotas are phased out," said the Chief Operating Officer, Mr S. Krishnamoorthy.

Grasim Suiting's textile exports were around Rs 40 crore to Rs 45 crore in 2003-04. "China, India and to some extent, Indonesia will be major beneficiaries because they can provide everything from fibre to garments. Buyers would like to source from countries that have a complete textile chain," Mr Krishnamoorthy said at the launch of its new range of fabrics under the brand name "Venetia" on Tuesday.

Mr Krishnamoorthy said the company was targeting a topline growth of 15 per cent in 2004-05, up from Rs 250 crore to Rs 300 crore in 2003-04. It is also getting ready for an expected spurt in demand after December 31, 2004. In the last two years, Grasim has expanded its production capacity from seven lakh metres of fabric a month to 1.5 million metres a month, he said.

"Our future expansion will be demand-led. We will, however, continue to invest at least Rs 7 crore to Rs 8 crore every year for modernisation and expansion," Mr Krishnamoorthy said.

Reacting to the new Budget proposals for the textile industry, he said that providing units the option to either stay in the Cenvat chain or to opt out of it was a "good" move. "In case of the polyester blended fabrics, the company will opt to stay in the Cenvat chain for the time being," he said, adding that the new tax regime allows companies to switch between either of the systems.

Unveiling the Venetia range, Mr Krishnamoorthy said the new offering would help garner 10 per cent of the total product line of its fabrics division. Available in the price range of Rs 4,500 to Rs 5,000, the Venetia range will initially be launched in seven cities.

More Stories on : Outlook | Exports & Imports | Textiles | Diversified

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