India's textile machinery has achieved good growth. In 2004-2005, Indian textile machinery business sales revenue reached 16.5 billion rupees, an increase of 2.5 billion rupees.
Despite the prosperity of textile machinery operations, India's textile industry still suffers from a shortage of machinery. At present, Indian textile companies need to wait a year or two before they can get the delivery of machinery. However, textile companies' orders need to be completed within 10 to 12 months.
The increase in demand is a daunting challenge for Lakshmi Mechanical Engineering in Coimbatore. The company needs 18 months to fulfill new orders, but the company expects that with the expansion of production capacity, the delivery period will be reduced to 10 to 12 months from 2006 to 2007.
There are two reasons for the delay in the delivery of textile machinery: the ability of textile companies to expand rapidly, and the pace of supply of textile machinery can not keep pace with the development of demand. The second reason is that the Ministry of Textiles' technical reform fund plan may end in March 2007. As a result, textile companies hope to make the most of the program's advantages and hurriedly place orders for textile machinery.
The consultants of the Indian Textile Machinery Manufacturers Association predict that taking into account the development of the textile industry, India will need 12 million spindle spindles in the next five years, while domestic textile engineering companies can only increase 10 million spindle spindles.