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business | IST

Nitin Spinners says mega textile parks could give fillip to production

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In an interview with CNBC-TV18, Dinesh Nolkha, managing director at Nitin Spinners said, "Mega textile parks will create an ecosystem where we can have all the facilities at one place and it could give a very good fillip to textile production, going forward.” He also believes that in the next two-three years, India can gain a lot of the world’s textile share.

The Union Cabinet has approved the setting up of seven Mega Integrated Textile Region and Apparel (MITRA) parks with an outlay of Rs 4,445 crore for a period of five years. The parks will be set up at greenfield/brownfield sites located in different willing states. These parks will be developed by a special purpose vehicle (SPV), which will be owned by the state government and the central government in a public private partnership (PPP) mode. To discuss this, CNBC-TV18 spoke to Dinesh Nolkha, managing director at Nitin Spinners.
Textile sector is a fragmented sector, where there are various segments operating in different parts of the country. India is a large country and the sector has a huge logistics cost.
“We have the advantage of various areas in terms of cost as well as the availability of the raw materials and other facilities. So, these kind of mega textile parks will create an ecosystem where we can have all the facilities at one place and it could give a very good fillip to textile production, going forward,” he said.
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This has been a very successful scheme in Vietnam. The country has seen their exports going up exponentially in the last ten years.
“We feel this is going to be a very good scheme, going forward. Companies like ours will need to look at areas where this kind of scheme is approved and going forward, how we can take up some of these areas,” he stated.
The company itself, has set up an integrated textile complex with an investment of USD 100 million. “We have a complete value chain from spinning to the finished fabric. We made this investment of about USD 100 million in 2019-2020. We are also planning to ramp-up capacities there,” he said.
If one has to set up something in these parks, one needs to look at the infrastructure which is being created, he noted.
He believes, in the next two-three years’ time, India can gain a lot of the world’s textile share. “We need to act very fast. We need to see the execution from the state government. If that comes in fast, definitely we would also be interested in setting up some of the industries,” he said.
According to Nolkha, big textile companies have to spend a chunk of infrastructure for bringing in power, water facilities, logistics also has to be taken care of.
“We will need a lot of coordination between state and the central government where they need to create the infrastructure,” he stated.
The company is looking toward a healthy growth in topline, which could be anything above 30 percent.
For the full interview, watch the accompanying video.