Exploring new markets sought:

Textile sector new hunting ground for global investors

The growing potential of India’s textile sector is not quite lost on global investors, who are crossing seven seas to invest in it.

The Rs 660-crore deal inked between asset management companies Blackstone

Group and Gokaldas Exports proves the point. It would not be an exaggeration to say that India’s textile industry is on the threshold of a major transition. The hefty deal signifies the start of an era of transatlantic consolidation in the textile sector.

Smaller players in the industry have realized that combining forces is the only way to boost exports and give a tough fight to emerging markets in neighbouring countries like Bangladesh, Sri Lanka and Vietnam.

Though rupee appreciation has had a negative effect on the morale of country’s exporters, they are trying to find a way to skirt around the problem by exploring newer markets.

Hence, Africa, West Asia, Russia, Latin America and Australia are on the radar of optimistic exporters. According to industry experts, private equity players such as Merill Lynch and Goldman Sachs might be in the run to pick up stake in textile players.