Recent Challenges Faced By Indian Textile Mills & Drop in Yarn Export

The textile industry of India contributes a whopping 12% to the nation’s forex earnings! However, the economic slowdown in the global market has had its adverse effects on the Indian Textile Industry, in addition to the various other verticals. While the overall textile and garment exports of the country rose by almost 4% in the current financial year, but it has still fallen short of the $45 billion target, pertaining to the massive decline in China’s demand with respect to cotton and yarn.

At present, the spinning mills have up to 10% material in excess capacity thereby resulting in higher inventory overheads and lower liquidity. The higher tariffs that have been imposed on products of these mills in all the major international markets, has further aggravated the issue.

What Impact Yuan devaluation can have on Indian textile industries?

A Sneak Peak – What is Yuan Devaluation?

China's Central Bank, devalued its own currency by close to 6% earlier this week, simply to boost exports in an attempt to recoup from the slowdown in its domestic economy and recent stock market crash. 

The Impact- What It means for India

The recent devaluation of Chinese currency Yuan, is called to be a bold move on the part of its Government, considering the fact, that while it will boost the Chinese exports, this move will eventually harm a large section of other markets, worldwide. In fact, this came as a blow to the Indian export market given the situation that the markets have already been going week in the recent past due to the recessionary conditions in the global arena! Now the question arises, where is it that it hurt the most? Sadly the answer is not just singular. This move on China’s part is understood to interfere with India’s textile industry, chemicals, metals, consumables as well as the e-commerce sector. Further the depreciation in Yuan’s value may cause Chinese people to opt local brands over imported ones. India will face substantial challenges due to this situation because china is a big market for goods such as cotton copper and chemicals exported from India. If china strategically keeps reducing the value of its currency in comparison to rupee, Indian markets might get flooded with cheaper Chinese goods available in the market.

Importance of an Effective Supply Chain in Textile Industry

With the tag of world’s largest population holding country, it is more than just obvious for India’s textile industry to have a significant contribution in the nation’s GDP. With a stature that big this industry has also come to have a celebrated presence world-over. This being said, the textile industry of India, however, is not as organized as one would assume it to be. Though the presence of intensely structured entities in the market cannot be denied, but the fact of the matter is that the better part of this industry is still ruled by small-scale enterprises, which are either consumed in creating handicrafts or engaged in manufacturing of apparels. Needless to state, it is this nature of textile industry that somehow cripples the existence of an effective supply chain.

How can online presence boost your business in textile industry?

Times are rapidly changing and so is the business model for every business. And textile industry is no exception. One of the major verticals where this change has brought about a whole new model of success is the online world of business. However, this change is not just a fleeting one, but is here to stay, and there are more than one reason for the same. So in case you have been hesitating till today, take a quick look at how exactly having an online presence can boost your business in textile industry.

Helps you reach global clientele

This is by far the most promising aspect of registering online presence for almost any business, more so for any vertical related to the textile industry. For the simple reason that fabrics and standardized items like home textiles can be easily purchased through the online medium as there are almost negligible chances of variations in product quality. This plays a vital role in enabling cross-border businesses, thereby enabling you to reach a larger and a more potential client base, that too without much hassle.

Five Ways to Make Profits from Your Surplus Textile Stocklot

Running a business is about closing deals, completing order and delivering the materials in order to earn profits, though an inevitable part of business is also dealing with the excess inventory. This overstock may result from a number of heads such as closeouts, changes in packaging, cancellation of orders, liquidations, bankruptcies and other unforeseeable aspects. While excess inventory creates a burden on the business owner, it also comprises of cost of storage and runs the risk of decrease in the original value of the merchandise. Moreover, the risk of the stock lot becoming outdated is always there.

However, not all is as gloomy as it sounds. There are some outstanding yet simple ways of getting rid of the excess stock, especially surplus textile. Take a look.

Upcoming Trends for Home Furnishing Textiles

Trends for Home Furnishing Textiles

In the present times, home furnishing textiles are all about creativity, styling and colour coordination. The markets are flooded with the choicest of textures and colours, and just so that you don’t miss out on the more sought after designs, here’s a quick look at the leading trends for the current year 2015-2016. And, believe it or not, it’s the simplest of them all, the colours that lay the most pivotal role in defining these trends.

An Order to Remember

It was mid-October,  A time for festivals in India.  A time to embrace new hopes for the coming year. And yes, for all the businessmen and traders, a time to earn business and make unparalleled profits. At least, that is what Mr. Rakesh Trivedi must have thought.  But, God had some other plans, and not so pleasing ones. Well, let’s hear it straight from the man!

“It was through a very good friend”, recalls Mr. Trivedi. He said, “It was on 11^th Oct, 2011, I can recall because well how can one forget such a day! My friend barged into my office with this huge smile on his face. He gleamed with excitement when he told me about his relative, Mr. Sahu who lived in the States. To complete one of his organisation’s orders, Mr. Sahu was required to acquire a whopping quantity of three 40’ HQ of Tapestry Christmas Cushion Covers. My friend had suggested Mr. Sahu that I can provide him with the material at a reasonable rate. Mr. Sahu agreed to negotiate & eventually place order.”  Adds Mr. Trivedi, “To be frank, I thought the idea was preposterous and I cannot strike such a deal, especially with no excess funds for backing. However, my friend was insistent, and ultimately we closed the deal! As excited as I was about the order, I knew it was something that would take up the better part of my capital and would leave me almost cashless. However, I moved forward towards completing the order.  It took me a lot of taxing days and sleepless nights before I could get the order ready.”

He continued, “It was 25^th of November, when the phone rang. It was my friend at the other end, but this time the perkiness in his voice was missing. He sounded grim. Turned out, the organisation was shut down, and the consignment was no longer required. I was dumbstruck. Though there was still time for Christmas, but for an order this huge, there was no possibility of finding a doting customer. I was right. There was no customer. Not in 2011. Not in the coming three years. My finances were in a bad shape. As guilty as my friend was feeling, one fine day he gathered some courage and came to me. He suggested a website called www.textilestock.in, where many other home textile suppliers like I had published there stock. He insisted that I visit the site and put up the details of my stock up there. Although reluctantly, I agreed. I got in touch with the team, and did as required. And there can be no words, whatsoever, to explain my surprise and joy, when my entire stock of homefurnishing textiles got sold out within a span of just 9 days! Yes, that’s true, I sold it to 2 different traders and that too at approximately my production price! Well God, or let’s say the universe, works in mysterious ways. That’s all I can say. I can never thank my stars, or for that matter www.textilestock.in enough!”