Book English 2011.p65 - Ministry of Textiles

annual report 2010-11CHAPTER IIITHE ORGANISED TEXTILES MILL INDUSTRYThe Cotton / Man-made fibre textileindustry is the largest organizedindustry in the country in terms ofemployment (nearly 1 million workers)and number of units. Besides, there area large number of subsidiary industriesdependent on this sector, such as thosemanufacturing machinery, accessories,stores, ancillaries, dyes & chemicals. Ason 30.9.2010, there were 1896 cotton/man-made fibre textile mills (non-SSI) inthe country with an installed capacity of38.53 million spindles 5,18,000 rotors and57,000 looms.Textile production covering man-madefibre, filament yarn and spun yarn isshowing increasing trend. Man-made fibreproduction recorded a marginal fall andfilament yarn production recorded a slightincrease of about 1.89% during 2010-11(April - October 2010). The production ofspun yarn during April-Oct (2010-11) isshowing an increasing trend by 9.17%.The production of cotton yarn during2010-11 April-Oct (2010-11) recorded anincrease of 11% (Provisional). Blendedand 100% Non-cotton yarn productionrecorded an increase of about 4% during2010-11.Cloth production by mill sector showedmarginal increase of 3% during April-Oct.(2010-11) (provisional). During the sameperiod cloth production by power loomand hosiery sector showed an increase of1.7% and 5.30% respectively. Howeverthe cloth production in handloom sectorshowed a decrease of 4.7%.CAPACITYThere were 1896 cotton/man-made fibretextile mills (non-SSI) in the country withan installed capacity of 38.53 millionspindles 5,18,000 rotors and 57,000 loomsas on 30.9.2010.CAPACITY UTILISATION IN THE MILLSECTORThe capacity utilization in the spinningsector of the organized textile mill industryranged between 80 to 90% while thecapacity utilization in the weaving sectorof the organized textile mill industry rangedbetween 41 to 62%.PRODUCTION OF SPUN YARNIt would be relevant to mention that thecontribution from the SSI sector has beenabout 10% in the total spun yarn production.A statement showing the production ofspun yarn (including SSI units) during thelast few years is given at table 3.1.SICKNESS/CLOSURE OF TEXTILEMILLSThe incidence of sickness and closure inthe organized textiles industry is a matterof concern. Textiles being the oldest andthe largest industry of the country, it is butnatural that at any given point of timesome textiles units could be lying sick /closed. One main reason of sickness isstructural transformation resulting in thecomposite units in the organized sectorlosing ground to power looms in thedecentralised sector, on account of thelatter's greater cost effectiveness. Othercauses of sickness/ closure of the industryinclude low productivity due to lack ofmodernisation, stagnation in demand andinability of some units to expand in theexport market, increase in the cost ofinputs, difficulties in getting timely and31