MUMBAI: Over the past couple of months, home textile exporters are witnessing a 15-20% jump in their volumes from the US and the EU. These markets typically offer higher profit margins.
India has emerged as the second-largest supplier to these markets after China. The home textile business consists of bed and bath linen, curtains, towels and mats. The US and Europe are the biggest export markets for Indian companies as they ship over 80% of their home textile products to these markets. Following the surge in demand, large players, such as Welspun India, Alok Industries, Abhishek Industries, say their order books are full for the next year.
The recent global meltdown has led to many home furnishing manufacturing units across Europe and the US shutting shop. That has now improved with some revival ahead of Christmas and the New Year. The global home textile business, which is estimated to be worth $10 billion, is expected to grow to $23 billion by 2010.
According to Welspun India, the country’s largest exporter of home textile, its order book has grown significantly. “The demand from the West has increased by around 30% as compared to last year. Buyers’ renewed focus on inventories and a cut on anti-dumping duty by the EU have supported the local exporters,” said Akhil Jindal, director of Welspun Group.
Alok Industries, the country’s second-largest exporter, has seen a sales growth of 47% to Rs 312 crore in the home textile business for the first half of the current fiscal, as compared to Rs 212 crore for the same period last year. The company says its order book is full for next 8-10 months. On account of lower material and labour costs, countries such as India, China, Pakistan, Bangladesh and Sri Lanka are scoring over their counterparts in the West.
With rising demand, Indian players, apart from looking at contract manufacturing and acquiring global brands, are also expanding their retail presence in overseas market. For instance, Alok is looking to expand its retail chain Home & Apparel. “We have planned to scale up our number of stores from existing 200 to 250 by the end of 2010,” said Sunil Khandelwal, the company’s CFO.
Source : The Economic Times