Senior textile ministry officials said talks are on with Juki for setting up a spinning unit in India, and with Toyota for a shuttle-less looms plant. Similarly, discussion are taking place with Toray for investment in the country's synthetic textiles sector.
We had a meeting in Tokyo with foreign investors. We want them to come to India and invest, textiles secretary Kiran Dhingra told FE after a recent visit to Tokyo to promote domestic textile industry and seek business opportunities with Japanese companies.
One of the major segments attracting FDI in India is the textile machinery manufacturing segment. There have been a large number of collaborations between local and global players to develop world-class machinery for the textile industry. Some of the existing technical and financial joint ventures in the Indian machinery industry include Lakshmi Automatic Loom Works (Coimbatore) with Ruti Machinery Work (Switzerland), Kirloskar Toyoda Textile Machinery (Bangalore) with Toyota (Japan) in Weaving, and Himson Textile Engineering Industries (Surat) with Fadis Italy in Synthetic filament yarn.
With the advent of these collaborations, the Indian textile machinery industry would be able to establish a strong positioning in the global machinery market, especially in the spinning and weaving segment, said DK Nair, secretary general, Confederation of Indian Textile Industry (CITI).
The textile machinery segment is capital intensive which means that for every labour employed, there is a capital investment of $16,867.
According to figures provided by CITI, the machinery segment has made an investment of $1883.85 million of which 3.73% is through FDI and other sources of investments are own sources (73.98%) and through financial institutions 22.29%. Among the various segments, spinning and allied machinery segment attracted 43.46% of the FDI inflow in the machinery manufacturing segment followed by synthetic filament yarn machinery manufacturing (18.88%) and processing machinery manufacturing (15.34%).
Nair further said that the textile machinery segment is the major player to infuse technological interventions in this traditional sector.