Textile cos must enter market'

Mumbai: With the topmost textile company having a market cap of only Rs 3,000 crore, as against that of half the listed companies, which is in excess of Rs 10,000 crore, there is a need to bridge this gap, according to Mr Anand Rathi, Group Chairman, Anand Rathi Securities Pvt Ltd.

Spelling out his equation of success in the current favourable market, Mr Rathi said that if textile companies want to grow fast internal accruals are not enough. If their target is to grow by 50 to 100 per cent annually, equity needs to be raised from the market. 'Traditionally Indian textile industry has been borrowing money for expansion, which produces slow results. But now the challenge is to fund your own growth; entering the capital market is a good option. Major funding for the companies must come from equity,' he said.