Malegaon Cluster

from Textile Value Chain - August 2021

Indo – Us Bilateral Partnership

EASE OF DOING BUSINESS, UPGRADATION OF TECHNOLOGY, MARKETING SUPPORT WILL MAKE THE MALEGAON CLUSTER COMPETITIVE

TEXTILE VALUE CHAIN Media, Mumbai organized a conference in Malegaon/ Maharashtra /INDIA on 2nd September 2021 at Habeeb Lawns with the conference theme of “Malegaon Power loom Opportunity and Challenges”. The objective of the conference is for the development of industry, understanding the problems/ pains and trying to provide an effective solution. This is the firsttime knowledge-based conference conducted in Malegaon especially for the textile and apparel industry. Industry associations, industry stakeholders were happy to attend a conference. The conference’s special guest was Mrs. Darshana Jardosh, Minister of State for Textiles who have addressed the industry through video conference.

Mrs. Darshana Jardosh, Minister of States for Textiles stated that the government is communicating with various clusters, stakeholders of the industry and understanding the industry textiles’ domestic and international market requirements. We understand the industry facing competition from Vietnam and Bangladesh market, we are making policies which will be benefited to industry. She mentioned that share industry issues and problems by email, the Textile ministry will take care of it.

Ms. Roop Rashi, Textile Commissioner could not be able to join physically nor virtually due to a pre-commitment and busy schedule. But she sent the message that she will visit the Malegaon cluster soon and understand the niche requirement of the cluster.

Malegaon Industry Veteran Advocate Mr. Momin Mujeeb Ahmed stated that current government policies do not support the Malegaon industry. The industry has 1% loom strength which makes lungi and saree, Global recession does not impact them. The rest of the industry is suffering from bad debts, no working capital, closed business due to global recession and Covid19. Maharashtra’s other clusters like Bhiwandi and Ichalkaranji are ahead of Malegaon. The government’s current scheme should be modified and simplified which can be benefited and easily implemented by the Malegaon industry.

Mr. Sajid Ansari, President of Malegaon Power-loom Udyog Vikas Samity; told that Government doesn’t have proper information about the Malegaon industry, so he wants to meet the Textile Ministry / Commissioner to share the problems of the Malegaon industry. Central government role is important for Malegaon plain power loom, sizing industry, modernization of industry. We need to change ourselves along with government support. We have developed industry from our hard work, if we get support then this cluster will grow. This is the start of a new beginning towards the development of Malegaon, in the future we will develop more useful seminars, conferences, workshops, B2B meetings for industry benefits.

Mr. Yusuf Ilyas, President of Taluka Malegaon Power-loom Sangharsh Samiti stated that around 30 - 40 years back Mumbai has all mills, Mumbai is supplying yarns to Malegaon, so yarns are costeffective, due to low transport cost. After Mumbai mills closed, yarn was supplied by different states of the country. Other clusters like Ichalkaranji, Bhiwandi have few yarn mills which makes yarn cost-effective for the power loom industry. During the lockdown, yarn manufactured increased the price of the cotton yarn as they are getting a good price from export buyers also getting other tax incentives and benefits, so they have increase price of yarn for the domestic market, due to this cost of fabric is increased and

nobody buying cloth with increased price, due to this half of the power loom has been closed in Malegaon. Weavers are not committing suicide as farmers, as they think they have to pay back to a Yarn manufacturer, so many weavers have sold their units to yarn manufacturers. Earlier there was a power loom federation, due to that we got yarn price discount for Rs. 2 / kg. Malegaon currently making Lungi, saree, poplin fabric with current technology, if we advance technology with the support of subsidy and We can compete with Ichalkaranji, Bhiwandi cluster. Bhiwandi is nearby Mumbai, as per buyers’ different quality fabrics are made. Malegaon quality is as per Pali - Balotra industry requirement. We can supply to Delhi and Kolkata market too. Kurta exported by India is USD 8.5 and Bangladesh exporting price is USD 6.25, USD 2 difference makes the industry less competitive compared with our neighboring countries. Easily implemented government policy, Shuttle less loom, Rapier loom we get then we will make good quality fabric with low price. Expecting some revolution in the industry.

Mr. Habeeb Ansari from Malegaon Saree Manufacturer spoken that, the government should arrange to open a permanent B2B office, Malegaon’s all quality fabrics will be displayed in the office, and buyers from across India and the International market can visit the office or virtually we can show our quality of fabrics. Malegaon is behind compared to other clusters, Modernization of technology and marketing programs both are important for the growth of the cluster.

Mr. Vikas Gupta and Mr. Singh from the Regional Office of Textile Commissioner, Navi Mumbai; jointly presented about ATUFS policy detailed presentation. Power-loom is working then the cotton and agriculture industry will work. Powertex and yarn bank scheme discontinued in March 2020, but we requested the central ministry to continue the scheme for the benefit of the industry. Though power loom is getting 50% subsidy of power by Maharashtra government.

Mr. ND Mhatre, Director General of ITAMMA and Ex- BTRA Official; has visited Malegaon frequently during his tenure in BTRA Mumbai. Earlier done many seminars in Malegaon and shared his wisdom/knowledge on the importance of technology in Malegaon. Malegaon has a lot of skills but no investment capacity. The technical textile industry is growing, assured the market for technical textiles. Lungi has international acceptance shown through video. He majorly focused on current technology with product diversification like color saree can make dupatta and dress material, color lungi with shirting and dress material, PC fabric with tablecloth, polyester fabric with curtain cloth, cotton fabric with panache and Terry towel; many more combination of a product shared which can be easily and immediately implemented. He also pointed out on Hard waste (Chindits) can be used effectively and earn revenue Mr. Navin Agarwal, Vice President of ATE Enterprise started as “I am not here to sale any machine”. He has closely worked with India’s almost all textile clusters. Since the year 1984 connected with textile industry, gradually seen cluster development in 15- 20 years. India’s Biggest trading house now is the Ahmedabad cloth market. He stated examples of Dhulia, Jalgaon, Bhiwandi, Shirpur clusters how they have started with one sizing machine gradually shuttleless / rapier/ air jet power loom become part of the industry now, i.e. Once sizing starts it is followed by power loom, in this process industry will develop and grow. Government support for subsidy and incentive schemes like TUFS and ATUFS is required. New generation/millennials who are Fast and Furious need to explore new things fast, so technology upgradation is a must. Malegaon and Burhanpur both clusters need immediate attention for technology upgradation.

Mr. Guruprasad Shetty from ATE Shared a case study of Ichalkaranji, Bhiwandi how they have adopted modern, advanced machines and develop clusters in the next level. How sizing and Morden loom develop the market and grow. With detailed presentation, he has conveyed a message about the importance of speed, productivity by Morden machine, even in the current machine how you can develop.

Mr. Badruddin Khan from MCX stated about the future market, Commodity Market, Electronic rate, future rate, forward trading many more. This knowledge is important for the entire value chain, as the industry starts with Cotton (Raw Material) so ginning, agriculture industry, farmers, yarn industry, and entire value chain are involved in the process. Yarn buying companies get the advantage that they know that market price will go up or down, it will help in Export and import. Future market price knowledge is important for weaving units to know yarn prices and the weaving unit can plan production. Even if companies are not trading industry should know the process of the entire value chain, especially raw material from where the value chain starts.

The conference is concluded with a positive note that knowledge given by speakers will be applied to industry, Organiser will be sharing Malegaon Problems / Voice to textile ministry/commissioner and try to resolve the issue at earliest.

Requirement of the Malegaon industry

- TUF Scheme money pending, weaving units closed.

- Make a scheme that is the benefit to the Muslim community ie Interest-free Loan

- Yarn Bank, interest free availability of yarns

- Support on Technology Upgradation

- Marketing Office in Malegaon for National and International Buyers

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