Message from Chairman

Message from Group's Chairman

Dear All,

The Indian economy continues to face challenging times with the slowdown not showing any signs of abatement. The economy has been hurt by sluggish private consumption with new investments reducing to a trickle. The global slowdown and escalating trade tensions between US and China have also contributed to the economic downturn. 

The global economy is showing signs of acute weakness and some of the leading financial agencies have warned of an impending worldwide recession. The major threat to the world economy, according to these agencies, comes from the escalating trade tensions between the US and China, the two largest economies of the world. UK’s economy is also facing challenges as its second-quarter GDP contracted because of uncertainty owing to Brexit. A threat of recession is also hanging over European economies. As far as India is concerned, the threat of recession is not imminent. However, the Indian government and other policymakers cannot afford to be complacent.

 

Textile industry staring at a crisis

The textile industry is not untouched from the economic slowdown that the country is presently passing through. The steep decline in cotton yarn export, high raw material cost, lack of skilled labour, poor demand in the domestic market are the factors affecting the textile units. 

China has been the main market for Indian yarn exports. However, things changed after China gave duty-free access to Pakistan in April this year. Bangladesh and Vietnam were already given duty-free access by China. As a consequence, cotton yarn exports in June this year was the lowest in the last five years. Over 25% increase in Minimum Support Price (MSP) for cotton farmers has made Indian yarn among the most expensive in the world leading to a further decline in exports. Clearly, the textile industry is presently staring at an existential crisis.

Under these circumstances, it is imperative for the central and state governments to take corrective measures such as rebating agricultural cess, mandi tax, power and fuel surcharge etc. in order to extend helping hand to the textile industry.

Economic slowdown hits Graphite Electrodes (GE) industry

The overall economic slowdown has adversely impacted Graphite Electrodes (GE) industry in India which was already under tremendous stress after India ended anti-dumping duties on GE import from China in September 2018. The growth of the GE industry depends heavily on the performance of the steel industry which has been hit by the general economic downturn that negatively affected its major customers from automotive, construction, appliance, machinery, equipment and transportation industries.

Amid falling GE prices, Indian GE manufacturers are facing another challenge arising out of rising needle coke costs. Any upward trend in the needle coke costs has the potential of negatively affecting the margin profile of the industry players.

Way Ahead

Despite all these challenges, I’m confident that the LNJ Bhilwara Group has the strength and competence to deliver targets and desired results under trying circumstances. Our combined efforts, dedication, determination, single-minded approach and belief in our abilities can override all the roadblocks in our way. Together we can and we will achieve our common goals.

With best wishes,

Ravi Jhunjhunwala

 

Editorial Team

Copy Editor: U. Padma Latha

Editorial Board:

 

  • O. P. Ajmera
  • Manish Gulati
  • Manoj Sharma
  • Sanjay Sharma
  • Mohit Maheshwari
  • Jyoti Gupta

 

 

 

Contact Detail

Bhilwara Towers, A-12, Sector-1,
Noida-201301, (INDIA)

Tel.:+91-120-4390300

Email : padma.latha@lnjbhilwara.com

Website : www.lnjbhilwara.com

 

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