The quota removal, the growing Indian economy, the policy reforms, the China fear, the growing retail business all are working in together to boost the Indian Textile Industry. The activity in the textile sector is quite vibrant and cotton textiles and apparels are the 'chosen one' where the boom is expected to continue for a longer period. The textile and clothing industry is also upbeat on investments and wish to explore the market overseas. However, it was not prepared well to cater to the increased demand arising out of the dismantling of the quota system. But the opportunities presented by quota removal has made them willing to put effort on building capacity and to try to increase the level of integration along the value chain to reduce cost and bring in efficiency. Due to the size of the industry spreading all over the country and being fragmented and closely managed in nature, it is though difficult to estimate the correct figure of investment made or what is coming up in the future, it is estimated that about Rs. 12,000 crores is going to be invested in 2005.
Helping the industry is
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| the new set of textile companies who have hit the capital market with IPO's. These are largely garmenting companies or garment exporters. In the past, government policies had forced these players to remain small. However with quotas gone these companies have large orders to fulfill and have to maintain an integrated manufacturing, cost cutting and lead time for better supply chain management, which cannot be implemented with small factories in place. To fund these capital investments, garmenting companies are raising finance from the capital market. Garment exporters have surplus money, and the best way to invest this money is to raise more equity based finance to accomplish large expansion projects to get better mileage out of the bullish trend. Also, larger equity base would entitle the company for bigger TUF loan at a very competitive rate of interest.
However, several companies that wish to raise finance through IPO route have been sitting in despair. The most important reason being the non-lucrative financial results. So it is time for companies to perform and set its Balance Sheet right to enter the capital market with an IPO before it is too late. 
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