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Harnessing the potential of the textile sector in Andhra Pradesh

E-Tex Staff - Hyderabad

Modern weaving units have a substantial growth potential in the state. There are about 1100 weaving units in the state with a production capacity of over 800 million metres of fabrics valued at Rs 1150 crore.

The textile industry in Andhra Pradesh, particularly the spinning and processing sectors, is well developed. AP is a leading producer of cotton and has a production base of over 2.6 million bales per annum on an average. Medium grade as well as superior long staple varieties of cotton is predominant in the state.

Andhra Pradesh has a mature spinning sector with a spindleage of over 1.6 million. There are about 80 spinning mills including a good number of 100% export oriented units (EOUs) with state-of-the-art machinery, producing cotton, synthetic and blended yarns.

Modern weaving units have a substantial growth potential in the state. There are about 1100 weaving units in the state with a production capacity of over 800 million metres of fabrics valued at Rs 1150 crore. There is a growing demand for good quality fabrics by the apparel manufacturing industry, which is being met partly by imports. Export of handloom and textile products from the state amount to over Rs 350 crore.

Andhra Pradesh has also emerged as a major centre for processing textile products with over 100 units having a processing capacity of over 13 million metres of cloth per annum. Some of the units have modernised their plants to meet international standards. The world over there is a growing consciousness about quality control norms particularly regarding the use of azo-free and eco-friendly dyes. There is good potential to modernise the existing units and to set up new state-of-the art plants to meet international standards. There are well-developed industrial estates in the state where such units can be set up. The apparel industry in Andhra Pradesh is characterised by the small scale manufacturers, catering largely to the domestic market. The apparel export industry is in a nascent stage.

In order to promote the setting up of modern export-oriented units the AP government has set up an Apparel Export Park with good quality infrastructure at Gundlapochampally about 18 kms from Hyderabad. Spread across 70 hectares of land, this park has 117 plots of 0.4 hectares each for allocation to manufacturer-exporters of apparel, made-ups and hosiery goods.

Two more parks on similar lines are coming up soon in Kuppam (Chittoor district) and Aganampudi (Visakhapatnam district). Textile parks are also proposed in powerloom clusters of the state.

The state is also a major producer of manmade fibres like polyester, vicose and rayon. The highly successful Sanghi group’s unit - Sanghi Polyesters, pioneered the manufacture of polyester yarn in the state. With just a processing unit in the past, they have diversified their activity into spinning. The success of this unit paves the way for many more such units.

Some of the other companies that have made their name in the state include GTN Textiles, the Suryalakshmi group, the DCL group and Kakatiya Textiles.

Some of the advantages of setting up units in this sector in the state include:

• Highly suitable soil and other climatic conditions for cultivation of cotton crop and long traditions to grow cotton
• Availability of labour at low wage rates
• High domestic and foreign demand for textile and garments
• Single window clearances
• Knitting and weaving - Chance to make a fortune

There is good scope to set up new units with foreign collaboration in this sector. AP is also a major producer of hides and skins in the country, contributing about 19 million pieces per annum.

Most of these pieces go to the 34 large and medium size tanneries in the state producing over 40 million square feet of processed hides and skins per annum.

The leather industry in the state produces a wide range of products for the domestic and international markets. There are 15 garment and 12 leather goods and footwear manufacturing units in the state.