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G. Gurumurthy

In the estimated 4,000/4,500 tonnes per month of 100 per cent VSF yarn exported from the country, Erode region's viscose spun yarn exports account for some 25 per cent or 1200 tonnes.

COIMBATORE, Feb.18

THE boom in the export of 100 per cent viscose spun yarn in the past one year has galvanised Erode's leading VSF based spinning houses into seeking new investments to shore up their market share.

At least two leading textile houses involved for years in pure viscose spun yarn and fabric production — P.K.P.N group and the Cheran group which together command over 20 per cent share in India's viscose spun yarn exports — are in expansion mode to bring more spindleage under viscose spun yarn production.

The anticipated new opening in the US market for the value added viscose based garments and the quota dismantling for garments by next year-end at their back of their mind, the Erode based weavers and the spinners are reinventing value out of this traditional fashion fibre yet again.

The growing consciousness on larger share of fabric outsourcing by major European garment houses from Erode/Coimbatore belt has also brought awareness among the Erode spinners seeking additional viscose spun yarn capacity.

"Erode region's VSF yarn export largely coming from three major spinning groups which used to be in the range of 600 tonnes per month till two years ago spurted last year when we would have done about 1,200 tonnes per month in average. This year the 100 per cent VSF yarn export from this area is expected to go up and may touch at 1,500 tonnes per month," said Mr P.K. Jayagopal, Director of the Rs110 crore-turnover PKPN textile group based in Pallipalayam near Erode.

In the estimated 4,000/4,500 tonnes per month of 100 per cent VSF yarn exported from the country, Erode region's viscose spun yarn exports account for some 25 per cent or 1200 tonnes.

With increased preference for the VSF yarn from the Erode supplier-mills by the European garment/fabric finishing units, the southern spinners share in VSF yarn export this year may go up by another 5 per cent this time. Belgium, Italy, Germany, Japan and Taiwan are the major countries sourcing pure viscose yarn from the Erode spinners.

"We are targeting the US market which will offer more business opportunity for the fashion garments once the quota regime goes by 2004," the Director of the Cheran Spinners Ltd, Mr V.S. Palanisamy, said.

The Cheran group has a total spindleage of 55,000 exports about 500/600 tonnes of VSF yarn almost the same volume as the PKPN group which commands about 76,000 spindles entirely devoted to spinning viscose and viscose polyester blends.

Both the group also have also weaving units.

Mr Jayagopal said that his group, which has proposed to increase the spindleage for the viscose spun yarn production by another 25,000 spindles, would be adding immediately 11,000 spindles at a cost of Rs 10 crore this year.

According to Mr Palanisamy, Cheran Spinners too would be acquiring additional 10,000 spindles as his group has proposed to add more weaving machines to increase the fabric production.

"We have imported 14 second hand sulzer machines and have planned to import another 45 looms," Mr Palanisamy said.

The two VSF yarn exporters from Erode felt that having established their name in international market, they wanted the Grasim Industries, the country's lone producer of VSF, to ensure stability in supply and price of the fibre.

Any fluctuation in supply or price would render their exports uncompetitive, they said.

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