Increase in electricity tariffs, waste cotton prices are further weakening our working capital and forcing us to take new loans from Banks to meet our daily expenses. So as the last option, we are forced to suspend our production from 5th of July 2023 - RTF.
Coimbatore: Cotton waste from spinning mills, which were previously used to make mattresses and pillows and the remaining were burnt on agricultural land.
In the same way, the hosiery waste/cutting waste coming out of the ready-made garment companies and the waste PET water bottles that are in daily use by the public after consuming them which are polluting our environment are now recycled by open end spinning mills and used again creatively by the textile manufacturers in the textile chain such as handlooms, home textiles and technical textiles.
We are manufacturing 42 different color yarns from Ne 2s to Ne 40s count OE yarns for the last 40 years without using even a single drop of water by eliminating dyeing process, Grey and color yarns manufacturers in Tamil Nadu are producing approximately 25 lakhs kgs per day and are selling them all over the country.
Since 2022, the prices of waste cotton have been continuously increasing showing increasing cotton prices as an excuse. Waste cotton price which used to be 40-50 percent of the virgin cotton price. since the last ten months we have been buying waste cotton from 50% to 75% of pure cotton. We cannot increase the prices of our end products like Grey cloth and home textile products in the same way. Textile products manufactured using virgin cotton yarn from spinning mills can be sold for Rs 200 to Rs 4000 per meter depending on the quality.
At the same time, the GREY CLOTH that is produced from the open-end yarn which is manufactured from waste cotton can only be sold from Rs. 28/- to Rs. 50/- per meter. In this case, price of waste cotton when sold at 75% of pure cotton cost makes us incompetent to give our end products in the above prices.
Meanwhile, The Tamil Nadu Power Board has introduced the concept of peak hours for LTCT electricity consumers by charging 20% higher rates during those hours and increased the demand charge several times forcing us to pay demand charge from Rs.3920 to Rs.17200 per month regardless of whether the mill is in operation or not.
All the above challenges are further weakening our working capital and forcing us to take new loans from Banks to meet our daily expenses. So as the last option, we are forced to suspend our production from 5th of July 2023.