The processing units are the most badly impacted along the textile value chain as a whole.
Variations in cotton prices have impacted the rate of printing on grey cloth, with most processing facilities operating at roughly 50% capacity for the past 1.5 years.
Three processing houses were sold in the past four months. More, according to industry insiders, are on the market, and some have started selling their machines.
In Gujarat, particularly in Saurashtra, spinning mills underwent ownership changes the previous year. Units are currently changing ownership in the city’s Narol textile processing cluster. Processing companies are unable to pass on greater costs due to low demand, despite the fact that their input costs have grown.
Komal Texfab recently bought York Print Pvt Ltd, which has its headquarters in Narol. Magic Textiles, a different processing facility, is reportedly being sold, according to sources.
VBS Textiles Pvt Ltd, another renowned textile processing business, is in negotiations with prospective bidders to sell its Narol facility. All processing houses have been operating at reduced capacity for more than a year, according to the company’s MD, Sukoon Shah. Our Narol processing facility, which can produce 70,000 meters per day, is currently being sold off. We are in discussions with potential buyers, and if we receive a compelling offer, we will proceed with the sale. We shall, nonetheless, carry on with our operations using an asset-light strategy.
