Textile mills some Misconceptions

Misconceptions are main hurdles in Growth of Textile Mills
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Misconception No. 1 . — Cotton / Fibre rates are main factor of Profit or,Loss of Spinning Mills.

In fact Cotton / Fibre Purchase system and Yarn delivery contracts are responsible for Profit/Losses of Spinning Mills.

Misconception no. 2. – Hike in Power Cost creates Losses.

In fact- Hike in Power Cost in every year is a very common phenomena so this must be considered at the time of Sale Contract.

Misconception No. 3 — Revised/ increased Wages Cost increase Loss of Spinning Mill.

In fact – like Power Cost , Spinning Mills must consider this mandatory and must plan wages cost for sale contracts of next months.

Misconception No. 4 — Strict Supervision & Administration may squeeze Human Efficiency more and more every day.

In fact – “Human Efficiency” is very complex subject so we should not handle with Strict Supervision & Administration only.

Misconception No.5- Mixing of poor quality raw materials will increase Profit.

In fact – This is only Eye Washing by Cunning Fellows. This is open fact that Leading Textile Companies never play with the Raw Materials and earning profits since 50years.

Misconception no. 6.- GST is hurdle in achieving Profits.

Textile sector is the second largest employer after agriculture and it contributes 5% to India’s GDP, 7% of industrial output in value terms, 12% of the country’s export earnings.
China plus Strategy is playing out in the Textile Industry – China’s share in global T&A trade in 2019 was 34%. The share has come down from 39% in 2015.

The US banned entry of all products containing cotton from Xinjiang. This is bound to trigger a material shift in global apparel trade as China is the leading apparel exporter, accounting for more than 35 percent of the global trade and more than 80% of China’s cotton originates from the Xinjiang region. India surely stands to gain as it has a strong presence in the cotton value chain.
Region-wise diversification and players wise Consolidation – Decentralization as a theme is playing out in the industry after the crisis. Buyers are not keeping it set to one place region-wise. No one country in the company’s sourcing list will occupy a larger share.

Buyers want strategic vendors so they are consolidating their vendor base. For instance, H&M sources from 71 suppliers in India. Any consolidation in the vendor list of H&M means the elimination of small and tail-end suppliers. This will lead to gain in share by the larger companies, thus boosting their earnings.

Workplace safety is a big concern in Bangladesh – Many big brands are not comfortable in sourcing from Bangladesh due to poor working conditions. The same also highlighted by many Indian garment players.
With abundance of raw material and presence across the entire value chain, India is in an advantageous position in home textile, kid garments, etc.

The Indian Textile Industry is expected to grow at a CAGR of 10% in the next 5 years. On the other hand, the growth rate of global textile is low.

In fact – GST is making our Taxation Procedure simple if our brain do not want Tax Evasion.


Misconception no. 7- President of Unit will perform better if Directors abuse him daily.

In fact – President can not perform well if he listen abusing language daily.

Misconception no. 8- Unit Head and other officers should be compelled to work 12 Hrs. daily in place of 8 hrs. for better results of manufacturing Unit.

In fact – Results will deteriorate if Directors compelled Unit Head and other officers to work 12 hrs daily.

Misconception no. 9. – Unit should cut many recreation, betterment of residential facilities , welfare activities for minimising cost on product.

In fact – Above all may increase Human Efficiency and Unit may earn losses by cutting these activities.

Misconception no.10 – Directors may do better marketing of Finished Product than Professionals.

In fact – Directors may sell the products but better marketing is possible by Marketing Professionals only.
Directors should prepare best & Long Term Policy for product establishment in market as a guide lines to Marketing Officers.

Biggest Misconception…

“ Happiness is not possible in Textile Industries.”

I myself and those who had eyes to see Happiness before 1985 are witness of Happiness.

  • Every Mill were distributing Sweets to all workers at Diwali.
  • Every Mill were giving Bonus to all employees at Diwali.
  • Every Mill were organising Music Programme or, Film etc. for recreation of their employees time to time.
  • Small Technical Conferences along with Dinner Parties were very common at every Textile clusters for Textile Technicians by Machine Manufacturers and Spare Part Suppliers.
  • National Textile Conferences were being arranged by “ The Textile Association (India)” every year and lot of delegates used to reach just to listen technical speeches of Senior Technicians.

Hon. Prime Minister, Hon. President of India , many Cabinet Ministers had attended National Textile Conference.

  • Mill Owners were used to pay respect Senior Textile Technicians.
  • Chief Minister of states were used to meet Textile Mill Owners casually.
  • Every Final Year Student of Textile Technology were having at least 2 jobs to choose any one before last exam of Final Year at the salary equal to SDM .

So be sure, Happiness is very necessary fo growth of Textile Industry.

अरे भाई साहिब ,
पुराना याद करके तो खुश हो लो।
वैसे अभी भी मैं तो कहता हूँ अभी भी Happiness आ सकती है बस थोड़ा सा निजी स्वार्थ , झूठ को छोड़ दिया जाये।

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