Inspite of the currency depreciation and overall tepid market sentiment hits Surat-based textile companies hard, the decision by states to offer freebies such as saree and dhoti to millions have kept the mills humming, according to ET report.
The distribution of saree and dhoti to over 34.1 million people by the Tamil Nadu government is expected to boost the sales of Surat based synthetic fabric textile units. With Rajasthan and West Bengal likely to come with a similar sop in the coming days, companies are eyeing a robust growth.
Surat alone produces over 80% of polyester fabric in the country. Tamil Nadu Handloom Weavers' Co-operative Society, popularly known as Co-optex, received bids worth Rs 117 per saree and Rs 90 per dhoti in response to its recent tender in July to procure sarees and dhotis. A majority of the outsourcing have gone to states like Gujarat followed by Rajasthan (Bhilwara). Companies from Surat such as Sumit Industries, Rameshwar Group, Eagle Group and Mohit Industries have started executing the orders to meet the September 15 deadline given by Co-optex.