Exclusive interview with thought leader Mr. Suresh Kotak, Chairman of Kotak & Co.

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Exclusive interview with thought leader Mr. Suresh Kotak, Chairman of Kotak & Co.





Q: How was the year 2014-15 for the textile industry?


A: I think, 2014-15 was not a comfortable year for textile industry. We found lot of difficulties because of various reasons such as national and international policies.


Q: With so much dependence on global factors, what must be done to bring sustainability of the industry?


A: Global factors are going to stay. We must accept that commodities which are used to as functionality and utility. Different commodities have different values. We have to adjust with time and not to expect time to adjust with us. It is not the matter of value addition; we have to unlock the values.


Q: Must we grow less cotton to increase demand?


A: cotton is ideal most fibre. Cotton has certain enhancement advantage. It is renewable resource. It is environment friendly. You cannot desert the world.


Q: Do you think there is a saturation of Ginning & Spinning mills, especially in India?


A: ginning factory has to be next door of plantation area. Even spinning factory should be near the area of ginning factory. Textile industry is compact industry. Old economy won’t stay for long time. Transport cost takes more shares.


Q: Why are spinning mills in trouble when the Indian rupee is depreciating and prices of cotton are steady?


A: the spinning mills are going with all hack net ideas. They don’t take advantage of modern mechanism of ageing. Mills today make losses because they don’t know before manufacturing where inventory depreciation. They must protect themselves long age i.e. mechanism available if you don’t use it. The natural consequence has to be loss and mills cannot make profit.


Q: Textile industry is capital intensive industry. It is currently facing critical problems of bad debts & defaults. What measures must be taken to enforce law & order in the textile industry.


A: all modern instruments of finance are available like structure finance; by protecting security and liquidity unless develop themselves credible, change their method, thinking. They cannot make profits and industry will suffer.


Q: What is your guidance for the students of textiles regarding opportunity and pay scale?


A: we have to create skill in textile for students. We not only need employment but also need employability. Without employability, employ is an empty word. If you don’t create employability your product get suffer and you are at a loss.


Q: What message would you like to spread through the medium of COTTONGURUTM Fortnightly Newsletter to thousands of cotton textile companies & professionals?


A: I appreciate your efforts. You are serving not only cotton but whole textile industry which is very appreciable. Your passion and dedication I always like. Create people with this kind of enthusiasm, we can make India best textile nation of the world.





Exclusive Interview with Mr. B. K. Mishra, CMD, CCI






Q. What is your estimate about the total procurement and sales figures of CCI during the season 2014-15?


A: In 2008-09, the CCI had procured 8.9 million bales and this year it was 8.7 million bales because market prices were below the MSP in the initial part of the season. We are not very keen to conduct MSP operation every year. Market must be above MSP level ideally as it will be beneficial for trade.


The CCI has sold over 4 million bales and the current unsold stock is about 4.7 million bales.


Q. What will be unsold stock at end of the season 2014-15?


A:  Domestic requirement in the country is huge at 25 lakh bales. The CCI will continue to sell at current market prices. The CCI expects its unsold stock between 1.5-2 million bales and total closing stock of 5.5 to 6 million bales.



Q: What are your plans for exports considering that you are the biggest stock holder of cotton in India?


A: China has been the largest importer of Indian cotton over the last many years but China is not buying currently.CCI has started exporting to Bangladesh and is looking at other countries like Thailand and Vietnam for export. This year we have crossed 0.15 million bales till now which is a record figure from last 15 years. Exports could constitute 0.2-0.3 million bales of our total sales at the end of this season.



Q: What is estimation of final Indian crop this year for the season 2014-15?


A: The cotton crop was estimated at 39 million bales by the Cotton Advisory Board (CAB). Considering the drop of arrivals, we expect it to be 37.5 million bales.


Q: Do you foresee any change in Chinese policy for cotton & yarn?


A: China is sitting on stocks of more than 10 million tons. They don’t have any option, but to liquidate. They cannot survive if they buy cotton from rest of the world in same volumes as they did in the past. In my opinion, they have to lower down procurement from rest of the world. I don’t think they will buy large quantity of cotton from rest of the world in the near future.


Q: CCI has been directly associated with cotton farmers because of purchase policy. Considering the bearish market trend in the near future, do you think farmers should grow less cotton?


A: Current MSP prices do not fully cover the cost of production of cotton farmers. As per my opinion, they have to look for another crop which can give them better margin and profit and which are also beneficial for them. Farmers should sow less cotton and opt for alternate crops. They should select commodities which the country needs.


Q: What new policy can be introduced to make textile industry sustainable?


A: The Government provides adequate subsidy to establish textile units. Entrepreneurs should be looking for end value chain instead of only ginning and spinning.  India has the 2nd largest consumer population. Capacity of spinning mills should be restricted by government because we have surplus cotton and yarn.


Q: The textile industry is an capital intensive industry. It currently faces critical problems of debts and defaults. What policy can be enforced to restore law and order in textile trade?


A: Regulatory policies should be made by Government of India from time to time to facilitate trade. There is a constant friction and mismatch between value chains because of market fluctuation. 


Q: What message would you like to spread through the medium of COTTONGURUTM Fortnightly Newsletter to thousands of cotton textile companies & professionals?


A: I think you are doing legitimate & holistic job for cotton trade because you also know that cotton trade is full with rumor. This report which you are circulating is authentic and useful for trade.







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