Following industries such as mobile telecommunications, information technology and real estate, the Indian textile industry is now a target for global investors.
Recently, the Indian textile industry is becoming a new arena for foreign investors. So far, India's textile industry is on the verge of transformation.
The Rs 660 crore deal between Blackstone Group and Gokaldas Export Company issued a clear hint. The era of integration in the textile industry has begun. The deal gives a clear sign that foreign funds are smelling a significant increase in India's textile industry.
As neighboring countries become increasingly competitive in export markets, such as Bangladesh, Sri Lanka and Vietnam, large-scale and large-scale capacity integration must be carried out.
Analysts said that further industry consolidation is very likely. They said that now private equity players will enter the textile industry.
Indian exporters are under pressure as the rupee appreciates and exports to the US market, India's largest export market, slow down.
However, at the same time, newer markets are being explored. Because the textile industry is so fragmented, smaller companies will consolidate, expand production capacity, and promote exports. Market analysts believe that, in fact, this is an era of integration.
Although the US and Europe will continue to be India's traditional markets, the Indian textile industry is also entering other regions.
Africa, West Asia, Russia, Latin America and Australia are all within India's reach. According to industry experts, private capital operating companies such as Merrill Lynch and Goldman Sachs may buy stakes in textile companies.
However, these players with financial strength may not be interested in transactions smaller than $ 100 million.
Textile companies say smaller companies can be merged into larger companies, which could open the door for them to attract foreign investment.
