Listen to the second story in the above podcast about a company in China that is using indigenous automation to improve productivity in textiles.
So, we need a big push in automation and robotics in India by the Indian Govt as well to compete with companies from China.
What about the unions in India? Will they be willing to modernize?
Is Kitex Garments Ltd where Berkshire Hathaway, the textile company was before Warren Buffet took over? Invest money to keep up or go out of business but won’t be able to stay ahead of the curve because everybody is doing the same?
Kitex Annual Report talks about automation and the difficulties it has faced in implementation. What kind of automation? Will they be competing with automation in the US markets implemented by the textile companies there? Or will Kitex still hold an advantage with the labor cost which will be still required? How long before the automation reaches a level where the manual labour cost is not a factor?
Disclosure: Invested, on Hold.