Thinking global seems to have become the mantra of the country's $15-billion textile and garment industry, which has clinched a series of overseas acquisition deals in the last three years.
These overseas deals may not be running into billions of dollars, but they are significant in many ways for the Indian textile companies.
In just the first half of this year, local companies have shelled out around $152.82 million to ink five overseas deals. Their motives in doing so become clear from these acquisitions.
Take the case of Bangalore-based Himatsingka Siede, leading exporter of silk fabrics, which signed two acquisition deals to boost its margins.
It bought Italian-based Giuseppe Bellora for its luxury brands. To grow faster, it also bought US-based Divatex, a large supplier of home textiles with good distribution network.
Even Spentex, leading manufacturer of different varieties of yarn, acquired companies in Uzbekistan and the Czech Republic to expand its manufacturing capacities in cost effective locations and obtain tax benefits.
One of the biggest suppliers of terry towel to Wal-Mart, Welspun also sought to expand customer base with acquisition of 85 percent stake in CHT holdings.
This is a far cry from the earlier scenario when exports of garments and textile were constrained by quotas imposed by US and Europe as well as the local government's investment policies.