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India’s spinning capacity utilization reaches peak levels: Survey


A recent survey reveals India’s spinning capacity utilization is fast reaching peak levels. The survey covering 24 spinning mills, with total installed capacity of 79.63 million spindles says overall capacity utilization reached 74 per cent on July 23, and 84 per cent on August 13. Vardhman Textiles had a capacity utilization of 44 per cent on May 11, which increased to 69 per cent by May-end, 93-98 per cent in July, and 94-99 per cent by August 13.

Capacity utilization by the Trident Group increased to 98 per cent on August 13 from 24 per cent on May 11. Nahar Spinning reported spindle capacity utilization at 54 per cent on May 11 which increased to 86 per cent on May 31, 90 per cent in July, and 95-98 per cent by mid-August.

RSWM’s capacity utilization increased from 26 per cent in mid-May to 75 per cent by mid-August. Aarti International’s capacity utilization went up from 86 per cent in mid-May to 95 per cent in mid-August.

Clusterwise, South Zone including Karnataka and Tamil Nadu account for 27.64 million spindles. North Zone including Punjab, Himachal Pradesh, Delhi, Haryana has 3.80 million spindles and it capacity utilization increased to 65 per cent by August 13. Capacity utilization in the Gujarat cluster including Ahmedabad and Surat increased to 75 per cent in mid-August.

According to the survey, recovery in the organized sector has been better and faster. With 6.77 million spindles, the capacity utilization in the organized sector had gone down to 44 per cent in mid-May. However it moved up to 59 per cent by the end of May, to 70 per cent in June, 74 per cent in July, and 84 per cent by mid-August.

Capacity utilization in the unorganized sector also increased from 25 per cent in May to 58 per cent by mid-August.


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