New Delhi, Feb 29: Consolidation and restructuring in the textiles sector hold the key to India's achieving the 50 billion dollar mark in global textile trade by 2010, according to CII. A CII study says the country needs to develop informal business pools among clusters for capacity consolidation to maximise returns. That, it said, would enable a single reference point for international customers and significantly contribute to profitability.
The study, 'Introspecting competitiveness of the textile sector in southern region', also recommended exploration of options like restructuring of corporatisation, consolidation, cluster groups and one time settlements to attract domestic as well as foreign capital into the industry.
It emphasised on a shift from 'product orientation' to 'service orientation'.
"The textile industry needs to work closely and be participative with the customers in defining needs and not just focus on capacity utilisation," it said, adding "the first step towards such orientation is to induct people from FMCG/retail/telecom sectors to infuse fresh ideas".
Focusing on value loss in the chain due to high level of wastages and inadequate monitoring practices and systems, it said industry operational practices in supply chain management management information sustems, total cost management etc were not institutionalised. Bureau Report