Interview with Mr. Purushottam Vanga, Industry Expert and associated various association in Bhiwandi Cluster

1) Current Scenario of weaving industry

The weaving industry of India today is providing employment to about 45 lakh workers directly. It is the main source of fabric contributing to 57% of total fabric production. The garment and home textile industry is heavily dependant on this sector for their fabric requirement. The industry is having about 25 lakhs powerlooms today which meets the domestic and export demand of the country.

 

2) Financial support of banks in Bhiwandi

The govt. came up with very beneficial schemes for supporting the small entrepreneurs by the way of Mudra loan. However, under the Mudra loan now a days people are facing problem of getting loan.

 

3) Infrastructure in Bhiwandi

Bhiwandi in Maharashtra is one of the biggest cluster of powerloom weaving activities, having more than 7 lakh and engaging about 20 lakh workers in the powerloom and allied units. It is highly dependent on market of Mumbai for its procurements of yarn or sale of fabrics. It is required to establish yarn depots and cloth market at Bhiwandi, so that the SME weavers of powerloom get a better marketing and sales platform eliminating the need of middle men/agent.

4) Demand Supply Equation

The powerloom industry is able to fulfill the demand of fabric supply of the country, however the consumption and production balance is little divergent. The starting 6 months cycle 90% of fabric is consumed in domestic and export market and 10% is utilized. In next 6 months cycle 25-30% fabric remains untilised, adding a total upto 40% of untilised fabric.

 

5) Requirement of yarn and fabric market in Bhiwandi

As mentioned earlier it is very much required to have a cloth market and yarn depot in Bhiwandi. Though the powerloom cluster of Bhiwandi is in existence since about 100 years, it could not take the full advantage in the absence of an established yarn and cloth market. It always depends on Mumbai market which is more than 60 Km away.  This results into going through 2-3, Middle Men / Agents for its procurements of yarn or sale of fabrics. Because of such situation, the entrepreneurs could not develop direct contact with actual Buyers / Exporter of fabrics.  It also effect the production schedule and timely delivery of the products, besides adding to transport cost. Thus it is required to establish yarn and cloth market at Bhiwandi, so that the SME weavers of powerloom get a better marketing and sales platform eliminating the need of middle men/agent.

 

6) Necessity of Modernization in weaving industry

It is very much required to modernize and update the manufacturing technology from time to time as the domestic as well as global scenario also keeps on changing at a faster pace now a days. To cope up with the changing environment and meet the global requirement the weaving industry of India is modernizing day by day. Govt. of India introduced schemes like TUFS and EPCG which gave a boost to modernize the technology and around 1.5 lakh hi tech looms are running now in the country.

 

7) Suggestion to improve weaving industry by minimizing problems

To improve the industry it is suggested to stabilize the yarn rate atleast for a month, establish yarn and cloth market at Bhiwandi, and bring appropriate housing scheme for the workers engaged in the powerloom and allied industry. In export front, schemes like EPCG should be extended for a long term rather than few months, FTA with other countries/region should be negotiated in a way that will make Indian textile product competitive with other countries products. Also fabrics should also be covered under ROSL scheme so increase the export.