ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

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Gleanings from Enterprise

Gleanings from Enterprise Hansavivek GARWARE NYLONS' chairman, B D Garware, says that production of nylon yam commenced in the country in 1962 with an output of 175 tonnes per annum and increased to 10,000 tonnes in 1970. The present licensed capacity is around 16,540 tonnes. There are 140 applications for industrial licences pending decision. Garware feels that, instead of creating more and more small units of uneconomic size, existing nylon units should be allowed to expand to an annual capacity of 4,000-5,000 tonnes so as to benefit from the economics of scale, make yarn and fabrics available to domestic consumers at reasonable rates, and promote exports. As for the Tariff Commission inquiry, B D Garware maintains that the industry is of very recent origin and so cannot yet absorb the effects of such an inquiry. For the time being, its raw materials arc being imported; it is capital-intensive and research-oriented; and it is subject to a high incidence of wear and tear and obsolescence owing to other chemical fibres like polyester, acrylics, etc. Says the chairman: "As such it would be a great burden to the industry to think of expansion and diversification and at the same time to get itself adjusted to the draconian framework that may be suggested or may result by this inquiry". According to Garware, a study of the price structure will have a semblance of reality catering to the needs of Government, the industry, and the consumer, only if for some years to come the industry is given freedom for growth till (i) the consumer preference is examined and developed in its true perspective, (ii) the raw material position is properly assessed, (iii) adequate reserves are built up for desirable expansion, and (iv) research and development and economies of scale are developed.

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