Textile processing units in Ahmedabad are currently experiencing a significant slowdown. Industry sources confirm that most units are operating at just 60% of their capacity. This decline follows a period of weakened demand across the sector.
Current Market Conditions
Ahmedabad stands as a major cotton textile hub in India. The Narol cluster alone houses approximately 125 textile process houses. These facilities possess an installed capacity of nearly 3 crore metres per day. Despite this impressive scale, recent weeks have seen a sharp drop in order volumes.
Units throughout the cluster report fewer orders, forcing them to run at lower levels. The situation marks a stark contrast to the healthy demand witnessed during the Diwali festive period.
Industry Voices on the Slowdown
Naresh Sharma, former vice-president of the Ahmedabad Textile Processors' Association, provided insight into the current challenges. "After the festive period, there has been a clear drop in demand," Sharma stated. He explained that process houses simply do not have enough orders to maintain full operations.
Sharma pointed to rising cotton prices as a contributing factor to the current slump. "December is typically a dull month for textile processing," he added. However, the industry holds hope for the coming season.
Hope on the Horizon: Summer and Festive Demand
The textile industry in Ahmedabad anticipates a pickup in orders starting February. This expectation aligns with the traditional build-up of demand for summer fabrics. Sharma expressed optimism about the timeline. "We believe that by February, the demand will improve significantly," he said.
This improved demand is expected to last through the festival of Eid, providing a much-needed boost to the sector. The summer season generally brings a wave of new orders for lighter fabrics and seasonal collections.
Intensified Competition and Margin Pressure
With fewer orders circulating in the market, competition among processors has grown fierce. Sources reveal that several units have resorted to reducing their processing rates. This strategy aims to attract business and keep machinery operational.
Such rate cuts add considerable pressure on profit margins during an already slow business period. Companies are forced to balance between securing orders and maintaining financial viability.
Technological Shifts Influencing Demand
Changes in product preferences and technology are also shaping order flows within the Ahmedabad cluster. A director from a leading process house highlighted a key trend. "Digital printing is increasing its market share," the director noted.
This shift means that premium quality process houses, often equipped with newer technology, are experiencing better demand. Conversely, traditional process houses that rely on older methods face more significant challenges in securing orders.
Crucial Weeks Ahead
Industry players identify the next few weeks as critical for the sector's recovery. This period typically sees buyers beginning to place orders for summer fabrics. Festive requirements also start to materialize around this time.
The coming month will test whether the anticipated demand revival materializes as expected. All eyes are on February as the potential turning point for Ahmedabad's textile processing industry.
