Spinning mills in Tamil Nadu are upgrading their units to produce compact yarn. One reason is that a large number of textile mills in the region are opting for faster air jet looms. Air jet looms require compact yarn that have less hairiness, better strength and can be used to make higher quality fabric.

Spinners are opting to upgrade their units to make compact yarn through retrofits. About 40 per cent of the upgradation to compact yarn is happening through retrofits. Mills are opting for retrofits as the costs are lower. They are installing compact yarn spinning systems in their greenfield projects as well as for expansion.

While retrofitting costs only around Rs 1,350 per spindle, installing a new compact yarn unit costs about Rs 6,000 per spindle. This could be one of the reasons compact yarn spinning systems account for less than 10 per cent of the total installed spinning capacity in the country. Branded items are mostly made using compact yarn. Even hosiery units are demanding compact yarn now. Textile mills in Tamil Nadu have added nearly a million spindles that are capable of producing compact yarn in the last seven to eight years. The demand for compact yarns is expected to grow in future.