Collectively develop the Indian market
“The competition in the Indian market is really fierce.” When the reporter asked for an interview, the staff of Quanzhou Aotu Precision Machinery Co., Ltd. repeatedly lamented. As one of the earliest textile machinery companies in Quanzhou to explore the Indian market, Ovv Machinery is facing the situation of sharing the cake with its Quanzhou counterparts. Around 1999, the company exported only a few textile machines to the Indian market. Today, this market share has exploded to hundreds of units today. Now, agents who speak difficult Indian English place orders for dozens of units each time.
“In India, the annual demand for large circular spinning machines is about 2,000 units.” Fu Bingxiong, associate manager of the management department of Quanzhou Aotu Precision Machinery Co., Ltd., estimated that there are at least 100 Quanzhou companies currently competing for the Indian market. Since India still mainly produces low-cost textiles, the requirements for textile machinery are also very low. Among the more than 200 varieties such as concave, high, medium and low-end, the other parties choose almost all low-end circular knitting machines. The competition among peers in Quanzhou is also here: the technical threshold is low. “In the early days of competition in 2011, peers lowered prices with each other, and some only earned export tax rebates.” Fu Bingxiong said that after the adjustment period in 2011, the company regained its momentum in the Indian market.
The emergence of textile machinery industry cluster
The expansion of the Indian market is traceable. An analysis from the industry is that India is already the second largest textile exporter after China. Indian textile manufacturers continue to introduce equipment, and the advanced, capital-intensive new textile industry is expanding rapidly, increasing the demand for textile machinery. The Indian textile industry chain, which mainly produces cheap and low-end products, needs high-quality and low-cost Chinese textile machinery. Compared with Europe, the quality of Chinese textile machinery is comparable, but the price is only one-third of that of European textile machinery, which is very attractive to Indian textile companies. In addition, the delivery time of Chinese textile machinery is relatively short. The delivery time of domestic textile machinery manufacturers in India ranges from 12 months to 24 months, while Chinese manufacturers only require 2 months to 4 months.
The advantage of Quanzhou textile machinery is that it has formed a relatively complete industrial cluster. It is reported that Quanzhou is the largest circular knitting knitting machine manufacturing and export base in China, with an annual export volume of more than 30 million U.S. dollars. It has formed more than 20 brand production companies such as Aotu, Busuo, and Baiyuan, and there are nearly a hundred supporting companies. The circular knitting machines produced in Quanzhou now account for more than half of the national market and more than 30% of the global market. Among them, in the first quarter, Quanzhou Textile Machinery Zhongdayuan knitting machines accounted for 95% of the exported textile machines, and the 147 units exported to India were almost all circular knitting machines.
High value-added textile machines have great potential
In the more than 10 years of cooperating with Indian agents, most of the machines have provided low-end equipment. Even for the high-end textile machines that the company strongly promotes, Indian businessmen hardly even ask. This is also the resonance of many textile machinery manufacturers, because the price is too high. “We have a computerized textile machine that can weave multi-colored strips. The price is several times that of an ordinary circular knitting machine, and the effect is very obvious.” Fu Bingxiong said that a customer in the past actually chose to purchase two circular knitting machines to combine technologies to produce low-end textiles. “Colored shirt”. However, this phenomenon has suddenly changed in recent times. Recently, Above Machinery has received inquiries from several Indian merchants, showing interest in these high-end computerized textile machines.
This change is due to the upgrading of the Indian textile industry. In addition to the most basic equipment procurement, industry insiders in Quanzhou also broke the news that in the Indian textile industry, businessmen have begun to look for partners in China. The other party provides factories and funds, and Chinese companies provide technology to jointly form textile machinery manufacturing companies. In the past, Indians were unwilling to produce even the simplest textile machines themselves and relied entirely on imports.
The emergence of this new situation will have a greater impact on many textile machinery manufacturers in Quanzhou. “For our company, in the future, these high-end low-end textile machines will be slowly eliminated.” Fu Bingxiong said that market competition has squeezed the profits of low-end products. At present, the profits of low-end textile machines are only 12% to 15%, while The profit of high-end textile machines is still 30%, and the technical threshold is higher. As the Indian textile industry improves in the next few years, there will be greater demand for high value-added textile machinery. As for this piece of cake, only companies with independent technology can divide it.
