Large scale sickness in UP textile industry
Updated: Jan 04, 2014 03:30:19pm
Lucknow, Jan 4 (KNN) Textile units of Uttar Pradesh have shown a large scale sickness with as many as 182 units becoming non-operational between 2000 and 2011, according to a study.
The number of non-operating textile units in UP rose from 30 to 182 between 2000-01 and 2010-11. Besides, 11,400 jobs were lost during 2010-11 against merely 2,300 jobs lost in 2000-10, according to a study titled 'State-wise assessment of textile sector and recommendations' by Associated Chambers of Commerce and Industry of India (ASSOCHAM).
According to the study, low productivity, lack of advanced technologies, lack of foreign investments, supply chain bottlenecks, lack of economies of scale, labour issues and challenges emerging from a fragmented industry and weak brand positioning have emerged key reasons for non-operation of textile units.
"Increased domestic and global competition and high initial investment cost for modern production facilities are other emerging challenges being faced by the textile industry," ASSOCHAM said.
During the period 2000-11, the total number of textile units in UP rose from 586 to 809, however the number of operational units increased from 556 to just 627. Further, the number of people employed in these factories decreased significantly from over 44,200 to about 39,400.
The gross value of input in the state textile factories increased by 170 per cent from Rs 2,500 crore in 2000-01 to Rs 6,700 crore in 2010-11.
Similarly, the gross value of output witnessed hike of 140 per cent from about Rs 3,200 crore to Rs 7,700 crore during the corresponding period. The narrowing ratio between output and input portrays massive decline in profit margins, which is a key reason leading to increasing number of non-operating textile units as input costs rose at a higher rate compared to output received.
ASSOCHAM has suggested technology and skill up-gradation, inflow of foreign investments, partnership with international labels, brand promotion and flexible labour policy to reverse the negative pattern.
UP also suffered decline in the share of textile units from 5.28 per cent in 2000-01 to 4.94 per cent as of 2010-11. The state registered a per cent decline in the total share of employment generated by textile industry across India; from about 4 per cent in 2000-01 to 3 per cent in 2010-11. (KNN Bureau)
The number of non-operating textile units in UP rose from 30 to 182 between 2000-01 and 2010-11. Besides, 11,400 jobs were lost during 2010-11 against merely 2,300 jobs lost in 2000-10, according to a study titled 'State-wise assessment of textile sector and recommendations' by Associated Chambers of Commerce and Industry of India (ASSOCHAM).
According to the study, low productivity, lack of advanced technologies, lack of foreign investments, supply chain bottlenecks, lack of economies of scale, labour issues and challenges emerging from a fragmented industry and weak brand positioning have emerged key reasons for non-operation of textile units.
"Increased domestic and global competition and high initial investment cost for modern production facilities are other emerging challenges being faced by the textile industry," ASSOCHAM said.
During the period 2000-11, the total number of textile units in UP rose from 586 to 809, however the number of operational units increased from 556 to just 627. Further, the number of people employed in these factories decreased significantly from over 44,200 to about 39,400.
The gross value of input in the state textile factories increased by 170 per cent from Rs 2,500 crore in 2000-01 to Rs 6,700 crore in 2010-11.
Similarly, the gross value of output witnessed hike of 140 per cent from about Rs 3,200 crore to Rs 7,700 crore during the corresponding period. The narrowing ratio between output and input portrays massive decline in profit margins, which is a key reason leading to increasing number of non-operating textile units as input costs rose at a higher rate compared to output received.
ASSOCHAM has suggested technology and skill up-gradation, inflow of foreign investments, partnership with international labels, brand promotion and flexible labour policy to reverse the negative pattern.
UP also suffered decline in the share of textile units from 5.28 per cent in 2000-01 to 4.94 per cent as of 2010-11. The state registered a per cent decline in the total share of employment generated by textile industry across India; from about 4 per cent in 2000-01 to 3 per cent in 2010-11. (KNN Bureau)
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