Indian textile companies seem to cash on Budget incentives by expanding their business operations.
Sangam, one of the biggest polyester viscose fibre manufacturers in India, is doubling its production capacity by adding 97,000 spindles.
The company is buying 62,000 spindles from Lakshmi Machine Works (LMW). For the rest 35,000 spindles, Sangam will rely on China as LMW is overly booked and will take more time to deliver the machines.
Krishna Knitwear Technology, an integrated textile company has recently imported 5,000 spindles. It plans to increase capacity by 1.5 lakh spindles in phases.
LMW has received orders for the next three years. The order inflow for textile machinery has increased considerably after January 2005 and the company is creating additional capacity to reduce the delivery period in future, stated R Rajendran, its Chief Financial Officer.
Keizo Hara, President, Kirloskar Toyoda Textile Machinery, feels that imports from China can grow and Chinese machines are ready to capture a large portion of the Indian textile machinery market.
However, Kirloskar Toyoda is also to increase productivity in April 2006.
LMW, the country's only fully integrated spinning machine manufacturer, has a capacity of about one million spindles per year.
The next big player is Kirloskar Toyoda with about three lakh spindles per annum manufacturing capacity.
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