Textile stocks mixed after Centre nods PLI scheme with Rs10,683cr outlay; KPR, Trident hit new highs, Filatex surges 9%

The Cabinet said that the PLI scheme for Textiles will promote the production of high-value MMF fabrics, Garments and Technical Textiles in the country.

Sep 09, 2021 01:09 IST India Infoline News Service

Stock market report with bull and bear
Textile stocks were broadly in the green on Thursday after the Union Cabinet on Wednesday has approved the PLI Scheme for the sector with an outlay of Rs10,683cr. On Dalal Street, KPR Mill and Filatex India saw a huge buying spree.

At around 1.43 PM, KPR Mill surged 6.3% after touching a new 52-week high of Rs2177.40 per piece earlier today.

Filatex climbed nearly 9%, while Trident surged 4% after touching a new 52-week high of Rs25.95 per piece in early deals.

Stocks like Raymond, Swan Energy and Alok Industries were marginally up.

On the other hand, Welspun India dipped over 3%, while Garware Technical Fibres tumbled nearly 1%. Indo Count and Arvind are marginally down.

On Wednesday, the government approved the PLI Scheme for Textiles for MMF Apparel, MMF Fabrics and 10 segments/ products of Technical Textiles with a budgetary outlay of Rs10,683cr. PLI for Textiles along with RoSCTL, RoDTEP and other measures of Government in the sector e.g. providing raw material at competitive prices, skill development etc will herald a new age in textiles manufacturing.

PLI scheme for Textiles is part of the overall announcement of PLI Schemes for 13 sectors made earlier during the Union Budget 2021-22, with an outlay of Rs. 1.97 lakh crore. With the announcement of PLI Schemes for 13 sectors, minimum production in India is expected to be around Rs. 37.5 lakh crore over 5 years and minimum expected employment over 5 years is nearly 1 crore.

The Cabinet said that the PLI scheme for Textiles will promote the production of high-value MMF fabrics, Garments and Technical Textiles in the country. The incentive structure has been so formulated that the industry will be encouraged to invest in fresh capacities in these segments. This will give a major push to the growing high-value MMF segment which will complement the efforts of the cotton and other natural fibre-based textiles industry in generating new opportunities for employment and trade, resultantly helping India regain its historical dominant status in global textiles trade.

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