KARACHI, July 14: Textile operators continue to remain engaged in revamping and modernization of their manufacturing units and are the single largest group of machine importers in capital goods category.

Import of textile machinery during the last fiscal year was about $525 million. It is about 29 per cent more than about $407 million of textile machinery imported during the fiscal 2001-02. In the last two years, the textile operators imported about $1 billion worth of machinery.

Textile operators reaped rich bonanza during the year 2000-01 and prudently invested bulk of their surplus in their own business ahead of 2005 when markets will be thrown open to flow of goods from all sides of the globe.

Market analysts say textile machinery worth about $2 billion have been imported in the last four years and there seems to be no let up in this process.

The spinning sector has obviously received the highest attention and resources followed by weaving and then various sub-sectors of value added segments.

Heavy investment and modernization has started paying the textile industry as export of textile goods during the fiscal 2002-03 has shown increase by more than 24 per cent. Export of textile goods now constitute more than 65 per cent of the country’s total exports and remain the main driving force of overall increase of more than 21 per cent rise during 2002-03.

There are now four textile items — cotton cloth, bedwear, knitwear and garments — that earn over $1 billion each, and a miscellaneous of textile items have earned close to $2 billion.

Textile operators are now expected to focus on these items, which have now immense potential to grow in export market and can generate a lot of jobs back home.

Attention is now being paid right from the cotton growing state where steps have been taken to encourage cultivation of good quality cotton. Ginneries are being upgraded to give clean and contamination-free cotton to the spinners. The spinners have invested heavily to spin good quality yarn that can be weaved to produce defect free cloth.

Producers of value-added goods are eyeing India to get relatively good quality grey cloth for manufacture of bed sheets and a host other home textiles.

“We hope to earn $8 billion from export of textile goods this year,” well-known and established manufacturers and exporters said.

There are about a dozen leading textile groups who are the driving force behind the textile exports. Quite a few of them have either already entered into arrangements with European or American textile operators to acquire their technology, marketing infrastructure and brand names. Former commerce minister Razak Dawood had advised the textile operators last year to go for buying reconditioned machinery in the North and South Carolina in the US where American textile manufacturers are winding up their business.

Textile operators were promised loans from the banks on strength of their balance sheets for import of reconditioned machinery and equipment from North and South Carolina where about 200 textile mills were said to be in process of closure.

The minister had then advised the businessmen to consider the possibility of acquiring the control of company and purchase brand names while transacting business for textile machinery and equipment from the US.

“This will give you access to that company’s market share in the US and other countries,” the ex-minister had said.