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CONTENT World Wrap

60

Holiday sales at US stores a mixed bag for retailers For retailers, holiday season is like a make-or-break time. This year, there was buoyancy brought on by factors like the seasonally crisp weather and positive marketing messaging among retailers.…p12

Tex-File 14

Sustainability Arvind Ltd.’s first sustainability report leaves no stone unturned

Top Exporters AEPC Export Awards recognizes excellence across various turnover groups p18

Vol. XIX ISSUE 20 January 16-31, 2017

NCR’s apparel exporters excited as LAPF Studio opens in Noida p38

H2F Home furnishing industry positive for 2017, but was not so happy last year The home industry has been in focus of late and amidst the extension of garment sector benefits to made-up units, dull market sentiments and shocking news of Target Corp....p40

43

FFT Trends Trend Forecast Autumn/Winter 2017-18

India Canvas India ITME 2016: Industry across India is geared up for expansion and upgradation Advanced

technology has always motivated entrepreneurs to expand, upgrade or even diversify within their parent business.

Export Statistics Indian apparel exporters’ performance show little signs of abatement Even after

nine months 2016, Indian apparel exporters working with the European market couldn’t really reap the benefits emanating out of China’s cascading down its apparel exports in the region...p64

Resource Centre IIGM and XCEL join hands; upbeat for more market space in the finishing segment Indigenous to the core with

‘Made in India’ product line of washing and finishing equipment for the last two decades, XCEL STIRO, has achieved another milestone with a strategic marketing tie-up with IIGM, one of the most respected technology providers of the Indian apparel industry...p68


FROM THE EDITOR-IN-CHIEF’s DESK… A Very Happy New Year to all our Readers and Business Associates!

EDITORIAL TEAM EDITOR-IN-CHIEF

Deepak Mohindra

Last year was a very exciting year for the industry with the Government finally acknowledging the potential of the industry with a ‘special package’ among other things, and 2017 holds a lot of promise for us at Apparel Online… The year 2017 is a time for lot of ‘interaction’, ‘introspection’ and ‘retrospection’ to work and exercise our minds to provide much more in-depth articles and value-basedresearch.

EDITOR

Ila Saxena

COPY EDITOR

Veereshwar Sobti

ASST. COPY EDITOR

Sahil Sehgal

ASST. EDITOR-NEWS

Dheeraj Tagra

ASST. EDITOR

Neha Chhetri

This year Apparel Online will complete two decades of providing information to the industry, and it has been a very long and interesting journey. We have all grown together and it is time to dig deeper into subjects that have been a part of our content pool for a long time. My editorial team has been busy formulating ‘key themes’ for the year and other stories that would make interesting content for our readers.

SR. CORRESPONDENT-TEXTILES

Sanjogeeta Ojha

SR. CORRESPONDENT-FASHION

Kalita Lamba

SR. EXECUTIVE-ADVERTISING

D K Chugh

CREATIVETEAM

Raj Kumar Chahal Peeush Jauhari Satyapal Bisht Deepak Panwar

PHOTO EDITOR

Himanshu Kumar

OPERATION DIRECTOR

Mayank Mohindra

PUBLISHER & MANAGING DIRECTOR

Renu Mohindra

Among the subjects that we plan to introduce this year is Handlooms… Many may question this decision, but I am convinced that the category needs to be integrated into the magazine. After all the Prime Minister has shown a clear indication that handloom will be a target segment for the MoT and the Central Government. Already the domestic market has been advised to incorporate handloom into their collections… We at AO feel that it is time to take a fresh look at the sector and its potential for the international market.

HEAD OFFICE

Also, finding a place in our editorial plan this year is a rundown on the new emerging manufacturing hubs. The realisation that garment manufacturing can no longer grow in traditional hubs because of rising wages, rocketing infrastructure cost, high running expenses etc., has given rise to a search for new manufacturing destinations. This search has been made more interesting with many State Governments pitching in with incentives to set up units in their state. I am sure the industry would be interested to know about these destinations.

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Sustainability will remain a focus area..., and continuing from the past we hope to dig below the surface for more meaningful subjects and dwell deeper into aspects like ‘CSR’, which is increasingly becoming the core of sustainability.

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Of course, we have not forgotten to include Product and Market stories, as also People Features. There will also be greater attention to Textiles and the Supply Chain.

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Planning a magazine is always challenging, but what is more challenging is to understand what our readers want and the type of information that could be useful to them to enhance business. I invite all of you to share what you would like to read… Also let us know which are the subjects or segments that you enjoy the most in the magazine. Together we can create one amazing issue after the other.

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MIND TREE

Q-and-A Union Minister of Textiles Smriti Irani has said that the Government can impose Dumping Duty on fabric imported from China as it is working on a policy to stem the flow of cheap clothes into the Indian market. The MMF sector has been demanding for the same from a long time. Being a fabric producer/apparel exporter, what is your take if our Government executes this policy, and how will it affect the industry?

Rajive Agarwal, Fabric Head – North Zone, Innovative Textile Limited, Gurgaon Like us there are many more Indian companies that have their own vertically integrated systems, right from ginning and they have all certifications/ approvals, fulfilling various norms and standards. And this strength of industry is into all kinds of fabrics and all these facilities are growing day by day. But still many Indian garment manufacturers, mainly medium-level ones, are not utilising these strengths and that too just because of minor price difference (Rs. 15-20 per kg) between Indian and Chinese fabric. This proposed duty will eliminate this minor difference too. One can’t deny that Chinese companies have more subsidies compared to Indian companies, in India. As some Indian garment manufacturers prefer Chinese fabric due to this difference, big houses too ignore their small orders, or are asked to go to agents/traders rather than dealing directly. But if they will come to us for all kinds of orders rather than going to China, we will support them more in all ways. This is how duty will work as a tool for supporting and strengthening relation of garment manufacturers and mills. In terms of product

development or innovation, Indian fabric is not too much away from Chinese fabric. In some cases, we do reduce our rates and sometimes work without margin to run the factory and fetch the orders just because of this Chinese aspect, so this is another reason this duty can support us. Through various modes now we are also approaching some small- or medium-level companies that prefer Chinese fabrics.

Avanish C. Jain, Director, Beebay Kids Apparel, Faridabad It will definitely have some negative impact on the domestic brands/garment manufacturers that are using such fabrics. Even my team is also using Chinese fabric as their fabrics are much better. But on the other side, this step will definitely give a boost to Indian fabric players and already few of the Indian fabric giants are proactive as they are coming up with latest collections, fashion studio kind of initiatives. So, it will not be wrong to say that this is not a bad idea as it will give more boost to Indian fabric companies. If we get the same or similar Chinese fabric from Indian fabric producers, definitely our first priority will be to these Indian producers. I personally have noticed that few of Surat-based fabric mills

are capable to replicate what China is doing and that too cheaper than China. Everyone should take the move positively so that Indian fabric can be promoted. But I must add that whatever/whenever duty will be there, it should be in balanced approach. We have to see that how it unfolds.

Anil Kumar Jain, Director, Salasar Unnati Textile, Gurgaon It is a very good move and we hope it happens as soon as possible. Whatever fabric comes from China, it comes from ‘multiple sources’. Even if it comes through legal sources, anti-dumping will surely boost our Indian fabric industry. As far as the issue for domestic brands are concerned, or issue of high cost or availability of such fabrics in India is concerned, now Indian fabrics are also very competitive compared to Chinese fabrics. And if order is in bigger volumes, there is not much difference in price also. Many Indian fabric producers like us are increasing their capacities, lot of investment are happening in technology, know-how and advance machinery also. It is making Indian fabric almost at par with China. Despite all this there may be some lacking but Indian textile industry will be close or equal to China

within the next few years. By this step the Indian Government imports is bound to reduce and such kinds of fillip is very much welcomed.

Sushil K. Aggarwal, MD, Eves Fashion, Delhi I must say that industry and Government should focus on developing advance, innovative fabrics in India. Why we need to look towards China, which is our biggest competitor. Such policies need to be seen in holistic approach as import of garments from Bangladesh is duty-free, is it not hurting Indian garment manufacturers, Bangladeshi garment manufacturers are using Chinese fabric so in this way, Chinese fabric is already coming and is being consumed without duty. As far as mediumlevel exporters are concerned, they have to focus more on value addition. They should make products, like Italy is making but is it possible to do such product without creativity at fabric level. At the end of the day, we are forced to import some fabrics like micro fabrics as they are not available at all in India. Here core responsibility comes to the mill sector as they have to not only develop fabric but also make sure that it is costcompetitive too.


Anil Peshawari, MD, Meenu Creation, Noida If it happens, it will affect companies working for domestic sector, until and unless there is any major change in existing policies. I don’t think that many exporters are working with domestic market because when someone is making for exports, he has to follow compliances and SOPs. If during lean period someone produces for domestic in the same factory, it is kind

NEXT MINDTREE

of spoiling the factory for export environment and that is not viable. I don’t know any exporter who is producing substantially for domestic.

Ravi Poddar, President, Garment Exporters Association of Rajasthan, Jaipur I don’t see how it is going to affect the apparel manufacturing community as a whole. Exporters don’t prefer to use these Chinese fabric as they

prove very expensive. Domestic brands are importing such fabric directly from China or sourcing it from importers, they will naturally face some impact. Similarly, it may create opportunity for more consumption of Indian fabric as brands will prefer to use Indian fabric.

Aditya Shankar Arora, Proprietor, VN Creation, Surat We welcome this initiative; overall Chinese fabric is very

poor in quality so naturally it becomes cheap. Indian fabric manufacturers like us are also forced to downgrade quality as there is no other way to tackle this issue. Quality-conscious Indian garment manufacturers do get quality fabric from China as it is also comparatively cheaper as we have to pay many taxes for the same fabric that we are producing in India. So, the Government must impose anti-dumping duty on Chinese fabric.

QUESTION

Most Export Promotion Councils (EPCs) are recognizing companies based on turnovers, though there are many other exporters who may be small but are doing excellent work in various categories/areas like sustainability, niche products, new processes, innovative working styles…, etc. Do you think that ‘turnover’ alone should be the criteria for awards… If yes, why; and if no, what are the areas that need to be acknowledged and need encouragement?

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WORLD WRAP

HOLIDAY S A L E S AT US S T O R E S A M I X E D B A G F O R R E T A I L ER S

F

or retailers, holiday season is like a make-or-break time. This year, there was buoyancy brought on by factors like the seasonally crisp weather and positive marketing messaging among retailers. Planalytics, which provides weather analytics for businesses, too says that December 2016 was actually cold, especially in eastern states which benefited the apparel stores by an estimated US $ 309 million compared with last year. Yet, retail experts caution analysts not to be fooled by rosy retail holiday sales reports. It’s true that the sector finished well, but not everyone benefited, and 2017 won’t be rosy for all. Though clothing is the top selling item during the period, but November and December now account for less than 21 per cent of annual retail sales at physical stores, down from a peak of over 25 per cent, and experts believe it’ll keep dropping. GAP and Polo Ralph Lauren were positive during this season while Macy’s Inc. and Kohl’s Corp. cut their 2016 profit forecasts after holiday season sales fell more than expected. J.Crew, Under Armour, Nike and Adidas are also losers of the season. GAP Inc.’s net sales were up 1 per cent in the months of November and December 2016 compared to last year. Its comparable sales stood at positive 2 per cent for the mentioned period as against previous year. “We’re pleased with

ESSENTIALS Retailers weren’t panicking at the end of the holiday season. According to the research firm Conlumino, although the average apparel discount ticked slightly higher to 31.3 per cent in December last, the average amount of clothing on sale dropped nearly 8 percentage points, to 50.2 per cent.

the improved momentum we saw over the holiday season, driven primarily by a positive customer response at Gap and Old Navy,” said Sabrina Simmons, CFO of the company. However, comparable sales for Banana Republic Global were down 7 per cent versus a negative 9 per cent for the same period last year; and Old Navy Global stood at positive 12 per cent when compared to negative 7 per cent last year. On the other hand, GAP Global generated positive one per cent comparable sales against negative 2 per cent last year for the reporting period. Kohl’s sales were volatile throughout the holiday season, even though it saw strong sales on Black Friday and the week before Christmas. The company reported its comparable sales decrease by 2.1 per cent in the same period. Also, the company’s total sales for the above-mentioned period declined 2.7 per cent. Men’s, home and footwear were the strongest categories while accessories segment was the most challenging. On a regional basis, the Southeast, Mid-Atlantic and Northeast were the best performing regions. The company’s gross margin is also projected to be lower than planned due to the mix and timing of the sales and the competitive promotional environment. JCPenney’s comparable store sales for the nine-week period of November and December declined 0.8 per cent

as against the corresponding period of last year, which equates to a 3.1 per cent positive two-year stack of comparable store sales for the same time period. At Stein Mart boutiquestyle men and women’s department store chain’s comparable-store sales for the nine-week period ended Dec 31, 2016 declined 4.8 per cent, while total sales fell 1.9 per cent compared with the prior year period. Challenges are mounting at department store retailer Hudson’s Bay Co. amid a disappointing holiday season as it lowered its full-year outlook for a second time.


ONLINE VERSUS OFFLINE, HEAVY JOB LO SS … Based on examined proprietary transaction data on payment cards for its analysis, reviewing more than 940,000 merchant locations in the US, SpendTrend holiday season 2016 report from First Data, the western US states had the fastest growth in sales at brick-and-mortar stores this holiday season as it experienced 4.8 per cent year-over-year sales growth during the holiday season. The southern states, in contrast, saw bricks-and-mortar sales decrease by 0.6 per cent. Amazon.com Inc. also said that it shipped more than 1 billion items worldwide this holiday season and called it ‘best ever’. But some of the known apparel retailers are on opposite track and growing online and closing there stores due to this. It is resulting into job loss which is alwaysa big concern in US economy. Macy’s Inc. and The Limited are cutting jobs, and closing stores due to this. JCPenney also noticed that e-commerce business performed strongly as evidenced by double-digit growth. It is pertinent to mention here that Macy’s comparable sales in November

and December declined by 2.7 per cent at company-owned stores. Women’s apparel retailer, The Limited is going to close all of its stores across which will affect about 4,000 jobs, including temporary ones. The brand is planning to sell the merchandise solely online. It grew to more than 700 stores in the 1990s but pared its store count in recent years. Subsequently, in 2016, the chain operated 250 stores. The retailer is one of several retail chains that have recently seen reverse trend as consumers increasingly buy merchandise online. Reacting on the same, Marvin R. Ellison, Chairman and CEO, JCPenney says, “E-commerce business performed strongly as evidenced by double-digit growth. This validates the strength of our omni channel strategy with our efforts to improve site functionality, expand fulfilment capabilities, offering flexible shipping options, and introducing a broad assortment of new product categories instrumental to this digital sales growth. As we prepare for a new fiscal year, our turnaround in profitability remains on track, and I am pleased that we expect to deliver our fourth consecutive quarter of positive operating profit.”


SUSTAINABILITY HAVE YOUR SAY

BREAKING NEWS

Tell us your news by emailing at news@apparelresources.com

To read the latest sustainability news, go to http://news.apparelresources.com/sustainability-news/

Arvind Ltd.’s first sustainability report leaves no stone unturned A

Arvind Limited, having a workforce of almost 15,000 is the first ever Indian clothing company/brandthat has published its sustainability report and also got recognition for the same on an international platform. This recognition is a motivation for other Indian companies that are moving forward on the sustainability route, but need to be more focused. The company has adopted the Global Reporting Initiative (GRI) G3.1 guidelines to evaluate its sustainability performance and in most of the disclosures, level of reportingismarkedas‘Fully’ whileinfewothersit is‘Partially’ or ‘Not’. The report addresses the economic, social and environmental performance of the company to Arvind’s stakeholders and describes its approach to sustainability, stakeholder engagement and an identification of the key sustainability issues.

Union Power Minister Piyush Goyal presenting award to Susheel Kaul, CEO–Lifestyle Fabrics (Shirting, Khaki &Knitwear), Arvind Limited

founder member of Sustainable Apparel Coalition (SAC), and having either certification or association with most sustainability monitoring agencies like GOTS, BCI, SAI, ISO, Global Reporting Initiative (GRI), Arvind has developed a method for structured identification of stakeholder groups, understanding their concerns and incorporating their views in its sustainability strategy. This method was developed as part of a Sustainability Roadmap study by E&Y. The material issues have been identified by the Sustainability Accounting Standards Board and a detailed assessment of impact of material issues on business led to the short listing of 17, among the 43 identified material issues that have the highest impact on its business. This 88-page long sustainability report for the year FY 2013-14 has identified six core inputs – Cotton, People, Money, Energy, Water and Chemicals, as propelers of business. And in all

these segments, the company has put in great effort for sustainable growth. Arvind has a close relation with cotton farmers, having 80,500 acres under BCI (Better Cotton Initiative) and organic cultivation wherein more than 9,000 farmers and almost 60,000 farm workers get employment. During the FY 2013-14, the company consumed 74,638 tonnes of cotton, out of which 15 per cent (7,650 tonnes) was produced at BCI project farms while 2,550 tonnes were from organic cotton farms. Recognizing the importance of credibility in the supply chain, Arvind claims to be maintaining 100 per cent traceability, as the company’s management information system helps to preserve the chain of custody right from seed to shop floor. It buys the crop directly from the farmer at fair market prices prevailing at the time of purchase. A ‘Farm Gate’ payment policy ensures that payments are made to farmers within

Arvind Limited clinched Asia’s Best First-Time Sustainability Report Awardat the ‘2016 Asia Sustainability Reporting Awards’. Seenis Abhishek Bansal (R), Chief Manager –Sustainability receiving the award


E SS E N T I A L S

Almost 3,105 man-days of employee training was done in FY 2013-14

Santej unit invested in ZLD technology to set up an ETPwith a capacity to treat 17,500 cubic metres of textile efluents per day

seven working days through account payee bank cheques. The company has established sustainable contract farming relationships with scores of farmers, and it measures and manages performance in accordance with the Higg Index. These efforts resulted into 29 per cent more yield for better cotton farmers and 27 per cent less water consumption. How important training is at Arvind can be understood by the fact that 3,105 man-days of employee training was done in FY 2013-14. There were 1,971 participants and 53 training programmes were organized. In outbound training, 450 participants actively partook in around eight such trainings. ‘Unnati’ is the worker development programme where the workers go through six months of rigorous training in Phase 1 and have to work on a six-month project in Phase 2. Upon completion, the workers get an opportunity to be promoted as supervisors. Another initiative – ‘Udaan’ (a 6-month programme) is for junior management development. The company claims that no incidents of gender, human rights or any other form of discrimination have been reported during the review period.

Efforts around energy include savings in natural gas consumption through use of energy-efficient stenters; 680 KW was saved by switching to high capacity air compressors, while 20 per cent less fuel consumption was possible by using humidity sensor in tumble dryer. It has zero liquid discharge system at Santej unit and 100 per cent recycled water usage at its Bangalore unit. Arvind managed to reel-in the absolute water consumption at Santej unit by 20.8 per cent by using comprehensive water management initiatives, while Naroda unit showed a growth of approximately 7 per cent. Of its total water requirement, 41.4 per cent is met by recycling and reusing the wastewater in-house. Post the review period, Arvind has further improved its sustainability performance and in FY 2014-15 the company treated 19.5 million m3 wastewater under its water management scheme. Arvind Limited was also able to further reduce specific consumption in thermal energy by nearly 12 per cent, besides achieving 12 per cent reduction in specific electrical energy consumption at its Santej plant in Ahmedabad, in FY ’15-16. It has also installed 1.30 MW roof-top solar power

Arvind Limited clinched Asia’s Best First-Time Sustainability Report award at the recently concluded 2016 Asia Sustainability Reporting Awards (ASRA) in Singapore. Sanjay Lalbhai, Chairman, Arvind Limited said, “The award reiterates our commitment towards sustainability. Sustainable practices have been a keyfocus area for Arvind for quite some time now and we continue to ensure that sustainability remains a top priority.” Arvind was also declared joint winner in the Asia’s Best Materiality Reporting category. The event was hosted by the British High Commission. The company also bagged the Top Rank Award in Energy Conservation and Efficiency at National Energy Conservation Awards 2016, organized by The Bureau of Energy Efficiency (BEE), Ministry of Power in New Delhi. Susheel Kaul, CEO – Lifestyle Fabrics (Shirting, Khaki & Knitwear), Arvind Limited said, “At Arvind, improving our plant’s energy efficiency has always been a focus, and we continue to invest in new technologies for sustained energy conservation.”

generation at the plant. As far as chemical usage is concerned, chemicals hazard tracking sheet created for entire chemical supply chain, Arvind Denim Lab is accredited by NABL, Levi’s &GAP etc. for physical &chemical testing. Saltrecovery by MVRE (mechanical vapour re-compressor) and chillers for re-use in dyeing is another step of the company. Its community initiatives are conceived and efficiently executed by the Strategic Help Alliance for Relief to Distressed Areas (SHARDA) trust, which is the CSR implementation arm of the company. It ensures that a family has five basic needs, according to their priority – Clean potable water at their doorsteps, including individual toilets and hygienic surroundings; Prevention of major diseases and treatment of basic ailments; Access to high-quality secondary and tertiary healthcare; Basic skill-oriented education programmes on reading, writing &arithmetic skills; and Vocational skills and abilities to compete in a highly competitive environment. About 1,300 students are getting benefited every year from Gyanda Programme, including the Sanjay Nagar (Ahmedabad) slum development project in the list of ‘100 best practices’ by UNCHS. The company is also closely associated with 300 individuals trained for skill upgradation in collaboration withNIFT. Sustainability pours in the product portfolio of the company, be it Neo Denim (which is a sustainable dyeing concept where there is no drainage of dye, before or after the process for shade adjustment), Authentic Denim (hand spun, hand hank dyed in natural indigo and woven on the handloom), Advanced Denim (manufactured using a ground breaking technology that reduces water and energy consumption by up to 92 per cent and 30 per cent, respectively compared to traditional indigo dyeing method), natural indigo denim fabrics, excel denim, linen denim, scafe denim and recycled poly with different peculiarities. It is important to note that during the reporting period, the company’s denims business grew 18 per cent in volume to 105 million metres – (highest ever in the last decade) and woven fabrics business achieved 19 per cent growth in volume to 103 million metres, (highest ever volume).


TOP EXPORTERS

AEPC Export Awards recognizes excellence across various turnover groups Category

Turnover Trophy

Highest Global Exports (above Rs. 500cr.)

First ever attempt to involve exporters at alllevels

New categories appreciated by industry

Textiles Minister suggests some more categories, including ‘innovation’

Shahi Exports, Faridabad

4272 cr.

Orient Craft, Gurgaon

1662.76 cr.

Gokaldas Exports, Bangalore

930.8 cr.

Gold Silver Bronze

Highest Global Exports (above Rs. 100 cr. and up to Rs. 500 cr.)

Even though Apparel Export Promotion Council (AEPC) Awards for excellence in export performance in apparel sector took place after a gap of two years, the industry was highly appreciative of the new format which allowed many smaller exporters to be recognized for their hard work. The event saw established stalwarts share the platform with many lesser known or emerging companies. 21 apparel exporters from across the nation were awarded for their performance during the FY 2015-16 in 12 categories (based on turnover brackets). A total of 82 exporters had filled 131 applications for these 21 awards. While giving away the awards Smriti Irani, Union Minister of Textiles suggested that AEPC should also institute awards for the best player in an emerging market, innovation in marketing or technology and also for supporting sustainable development goals. She further said that industry should move towards sustainable garments from an international perspective and look for innovation that is ethical. In the wake of demonetisation, she urged exporters to ensure that each and every worker in the textile and apparel sector of the country opens his/her bank account on priority basis. She added that for companies that found it difficult to get the same done, they were welcome to take the support of the MoT. Speaking on behalf of the exporting community, Ashok G Rajani, Chairman, AEPC requested the Minister to support the industry in the time of demonetisation as it is impacting the industry. Also, he assured her that Indian apparel export industry will achieve the target of US $ 30 billion target by the year 2019. Rajani requested the Minister to seriously look at formulating FTAs with India’s main overseas markets. Dr. A Sakthivel, Chairman, Poppys Group and veteran of Indian apparel export industry, was also honoured at the event for his outstanding contribution to the industry. Employment generation by apparel sector, and especially for women, was highlighted at the event and focus on the same was also reflected in the speech of Ajay Tamta, Minister of State of Textiles and Anil Bhuasia, Chairman, Export Promotion Committee (EPC), AEPC. A presentation about AEPC emphasized that ‘happy workers’ are the backbone of the apparel industry and urged exporters to take workers along in their growth strategy. Smriti Irani also appreciated the apparel export industry for the serious attempt to implement Internal Complaints Committee (ICC) in their units.

Pearl Global Industries, Gurgaon

447.54 cr.

Gold

Pratibha Syntex, Indore

433.59 cr.

Silver

Silver Spark Apparel (Raymond Group), Bangalore

370.37 cr.

Bronze

Highest Global Exports (above Rs. 50 cr. and up to Rs. 100 cr.) Penguin Apparels, Madurai

97.15 cr.

Gold

Jyoti Apparels, Delhi

95.90 cr.

Silver

Loyal Textiles Mills, Kovilpatti

93 cr.

Bronze

Highest Global Exports in Knitted Garments (above Rs. 100cr.) Eastman Exports Global Clothing, Tirupur 1020.8 cr.

Highest Global Exports in Knitted Garments (above Rs. 50 cr. and up to Rs. 100 cr.) Paragon Apparel, Noida

73. 87 cr.

Highest Global Exports in Knitted Garments (below Rs. 50cr.) E-land Fashion India, Tirupur

49.73 cr.

Highest Global Exports (above Rs. 25 cr. and up to 50 cr.) Fashion Makers Group, Noida

49.97 cr.

Gold

Century Apparels, Tirupur

49.71 cr.

Silver

Eric Apparel, Mumbai

49.68 cr.

Bronze

Highest Global Exports (above Rs. 1 cr. and up to 25 cr.) Trigger Apparels, Coimbatore

24.93 cr.

Gold

Thirumurugan Tex, Tirupur

24.84 cr.

Silver

Peacock Apparels, Madurai

24.29 cr.

Bronze

Highest Exports in Focus Countries M.S. Fashions Wear, Mumbai

103.93 cr.

Gold

Highest Global Exports by New Entrepreneur Million Exports, Ludhiana

60.5 cr.

Award for Highest Exports to Japan Lodha Exim, Jaipur

65.5 cr.


WINNERS TAKE ON BUSINESS…

S H R E YAS K A R C H A U D H A R Y M A N A G I N G D I R E C T O R, PRA T I B H A S Y N T E X

Among the fastest growing companies in India today, Pratibha Syntex manufactures garments for major brands like Nike, Patagonia, C&A, Zara, Levi’s, Woolworths, Jockey and Jack & Jones. The product profile includes fashion and leisurewear, activewear, sleepwear, and innerwear. Annually producing 60 million pieces of garments, the company clocked an export turnover of Rs. 433.59 crore in 2015-16.

W

hile accepting the Silver Trophy, on behalf of the MD, at the recently held AEPC Awards, Atul Mittal, VP – Marketing, acknowledged the relentless commitment of the workforce at Pratibha Syntex and stated that the recognition boosted everyone’s morale as it “acknowledges our accomplishments while also foreshadowing the heights that our company is yet to reach”.

Biggest constraints of 2016...  Significant drop in margins in European sales due to currency devaluation.  Poor demand for yarns and significant increase of competition from new spinning mills.  Re-aligning the organization for more fashion-led, quick response business from concept to delivery within 30-60 days.

Strategies to meet these challenges We are continuously working on our core strength and minimizing the non-valued activities. There is an effort to create a broader customer base with more added value, and sustainable product mix offering. A strengthened product development team along with garment design and support team in Europe has added value, while aligned organization for quick responses with greater

flexibility and wider product assortment is the way forward.

How is business today… Most of the brands and retailers are struggling with new customer expectations. 24x7 shopping convenience – fulfilling the needs whatever/whenever and specific product offerings without the customer having to sift through data, is becoming a norm. This has increased transparency and responsibility of the entire supply chain while ensuring product and process integrity. A challenge that has emerged is catering to generation X, Y, Z at the same time, and providing performance/ functionality with aesthetics. The world is undergoing change. Industrial Revolution 4.0 is on the advent and we are witnessing major breakthroughs in technologies and applications across all walks of life. The equivalent needs to happen in the apparel trade too.

Positives that you see for 2017… As with anything in the future, we can only speculate. A feeling of continued and possibly greater Government support (lower financial cost, streamlined and reduced paperwork/ documentation, improved infrastructure, and further support to skill development). Increased customer expectations of design

support and product diversity should be good for India; possibly increased focus on India vis-à-vis Vietnam and Bangladesh due to various factors including FTA. Enhanced social and environmental compliance (can be an opportunity and threat depending upon individual companies).

Challenges and goals in the New Year… The mood is of cautious optimism…; continuous price pressure, especially for Europe and UK; increasing raw material costs and growing wages; increased local or near sourcing, both in Europe and North America; continuous economic uncertainty in India and political uncertainty in some parts of Europe. There are many personal and business milestones. The key ones would be: Adopting/ undertaking some long-term high impact Corporate Responsibility projects; and reducing water and carbon footprint by 25 per cent and doubling Pratibha-developed product sales, significantly enhancing product development. “Whatever you can do or dream you can, begin it. Boldness has genius, power, and magic in it”. And “Knowing is not enough; we must apply. Willing is not enough; we must do.” – Johann Wolfgang von Goethe


N. C H A N D R A N C H A I R M A N AND M A N A G I N G D I R E C T O R, E A S T M A N E XP O R TS

With a modest beginning in 1983, Eastman Exports has positioned itself among the best exporters of garments from India with a current business volume of US $ 300 million per annum. Driven by the dynamism of its CMD, Eastman today is a name synonymous with growth and benchmark practices for optimum efficiency. Headquartered in the knit capital of India – Tirupur, Product Development is the real strength of the company. Biggest constraints… Increasing cost of labour, especially for migrant labour and their settlement, is an issue. Finding the right people for right work, better utilization of the people and the machineries in terms of optimum productivity is important as it would directly give yield on the competitiveness, on our pricing and its savings. Continuous fluctuation in cotton prices has resulted in inconsistency in pricing with our customers. We require a stable cotton fibre price with moderate fluctuation. We have a very good opportunity to explore 100% polyester (synthetic) fabric to countries like Europe, USA, Russia, etc. to access and tap their winter products. Our Government should have a clear fibre policy to have a level-playing field with competitive countries. The USD/ Rupee parity is to be maintained in line with the competing countries’ currencies; besides the Indian banks’ interest rate needs to be aligned with international rates. The Mother Vessel to Europe and USA should operate either from Tuticurin or Kattupalli port as an alternative port to Colombo; currently all the containers go via Feeder Vessel from Chennai, Cochin and Tuticurin to Colombo to catch Mother Vessel. This would ease down the multiple handlings and transaction cost to a greater extent.

Also the efficiency of Chennai port should improve drastically as often extreme hardships have to be faced to ship freight into vessels due to huge traffic en route CFS (Container Freight Station) to port, resulting in halt of trucks, thus incurring an additional cost for 2-3 days and which is a biggest concern here. The bottleneck on import duty parity between India and Bangladesh makes us fret and disconcert. The FTAs between India and Europe should finalize at the earliest in order to hold very good market share with Europe. Despite the economic crises prevailing in Europe, if this FTA gets signed with them, we will have a level playing field and greater market access. Also, it will expedite FTA to UK, Canada and Australia which is again a big potential market. The challenge is to consolidate all the customers, including brands, retailers, importers, etc. and we have to work very close to their business and be in constant touch with them. Since the apparel industry is more of fast and fashion retail business with very short lead times, the strategy and planning is more important to keep them at a high position. The sustainability of the business with client is required by providing them more comfort, confidence and transparency level, both in terms of pricing as well asdeliveries with the

factories. Nowadays the clients are not looking for new factories and we have to live up to their expected levels and consolidate theirbusiness.

Strategies to meet challenges… The competitiveness on pricing, on-time delivery with required quality, dedicated and approved line facilities are required to keep all the buyers intact. We should be more close to the market trend, new prints, innovative fabrics, etc. and also sustainability. As the pressure on pricing is huge we have to synchronize our efficiencies. Exploring new markets and adding to the clientele list is a routine process in order to scale up the business and parallelly expand capacities without affecting the current operation of the present customers. The goal is to move forward from current level to catch up the big number by increasing the clienteles’ list with new innovative products.

Positives of 2017… The mood is to retain customers addingvalues… Eastman always thinks positively and the same applies also for the New Year 2017. The recent announcement of notifications by the Textiles Ministry would give a boost to improve the competitiveness with our neighbouring countries and we hope the year 2017 would be of more challenges … Stay focused and be competitive!


SUDHIR DHINGRA C H A I R M A N & M A N A G I N G D I R E C T O R, O R I E N T C R A F T

With 22 manufacturing units, including a Silver-rated Green factory by IGBC in Chopanki Rajasthan, Orient Craft has always been at the forefront of change. Thinking ahead of times, the company took another landmark decision last year to promote Jharkhand as an alternate to Bangladesh. This progressive company produces 2,00,000 garments per day in four categories – woven, knits, denim and sweaters – and clocked a turnover of Rs. 1,662.76 crore in FY 2015-16.

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rient Craft has always taken pride in being a design-led company and at a time when product development was a mere catchword to impress buyers, the company already had a well-equipped design studio where its in-house designers and design teams from buyers’ office work together to create products that were high-value with FOBs, much higher than the industry average. Another strength that has kept the company among the top is the ability to venture out into new areas, even before anyone has tested the water. With over 30,000 employees, the company is very worker-focused and the initiatives run not only within its factories but in worker communities too. The core is to empower women and consequently support happier families. In Chopanki, the company runs a dormitory with a capacity of 1,080 beds, medical facilities, ATM, canteen and many other facilities. The community around the factory has also thrived with many small businesses coming up post the establishment of the factory in 2011 with local vendors providing business worth around US $ 88,000 in the last 5 years.

Biggest constraints… The year 2016 has posed a lot of pressure on garment exporting community in terms of pricing and delivery lead times. Indian supply chain continues to be relatively slower and less responsive, when it comes down to producing fabrics and the accessories required. The cost of labour continues to go up, putting further pressure on prices; so one has to work on efficiencies and just efficiencies alone, to mitigate these challenges. It is important at the Government level to seal the FTA deal with the EU, once the agreement is in place, business will grow in leaps and bounds. A business which is currently US $ 8-9 billion will grow hundred per cent year-on-year for the next three years. I also feel that the Government needs to look at bilateral agreements with the US and Canada, as the world wants to do business with us today and our biggest markets are still the western markets of the US and Europe.

Where are the opportunities… I see great opportunities ahead since the Government of India as well as various

State Governments have begun to realize the true potential of the garmenting trade and creating much required jobs for the rural poor. The current package offered by the Central Government and some of the benefits being offered by various State Governments will put new life into this business and I clearly see people making much needed expansions and relocations.

New initiatives for 2017… Enthused by the potential of the incentives offered by the Jharkhand Government through the new textile policy, Orient Craft through a special purpose vehicle – ‘Orient Craft Industrial Parks’, plans to set up two ‘plug-n-play’ industrial parks with combined size of 140 acres – to be called Fashion Park, Ranchi I and II – with aim to make available ‘ready-to-move-in’, plug-n-play manufacturing facilities ensuring speedy start of operations in no time.

Message to the industry… I firmly believe in acche din aane wale hain. It is for the industry to be proactive and take up the opportunities, a better environment than this may never come again...!


PULKIT SETH V I C E C H A I R M A N AND M A N A G I N G D I R E C T O R, P E A R L G L O B A L I N D U S T R I E S L I M I T E D

India’s truly multinational apparel export house having subsidiaries in Bangladesh and Indonesia, Pearl Global Industries Limited is producing 46 million garments per year. Even in India, units of the company are widely spread in north as well as the south of the country. Multi-country manufacturing capabilities allow it to hedge against changes in business environment and also be a one-stop shop for buyers looking for global sourcing options.

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s a growth strategy, Pearl Global is building specialized factories that allows it to provide high quality multi-product offering to its customers all over the world. Ensuring appropriate and adequate training to enhance the skills of the labour force is one of its top operational priorities.

Biggest challenges of 2016… Costs have been going up steadily. Two big factors are – inflationary headwinds in India and steep increase in minimum wages in India. These have put a pressure on the margins. Managing margins under the current scenario where labour costs have gone up by almost 30 per cent and buyers continue to exert a pressure on pricing will be the key challenge for the NewYear. Labour is another key challenge in northern India. Getting skilled labour is an issue. Generally, the labour productivity is low in India as compared with other countries, while the attrition rates remain high. Logistic remains one of the key challenges. The surface transport infrastructure in the country requires to be improved. It takes almost 60 hours for the container to be moved from Delhi to Nhava Sheva Port (Mumbai). The port is frequently congested delaying the dispatches.

On Government policy front, the recent changes to TUF scheme made by the Government are less favourable than the earlier scheme in terms of encouraging investment in the garment sector. Though Government has come up with a good scheme for duty drawback and focus incentives, but there is tardiness in processing the payments. Industry is seeing increasing competition with Bangladesh, Myanmar, Vietnam and Ethiopia, both on account of lower cost of labour as well as preferential tariff treatment under GSP. Subdued demand due to economic slowdown in Europe and US have resulted in only modest growth in the key export markets of the west. Buyers are expecting a much quicker response to market, lower lead times, higher levels of compliance and very efficient manufacturing capabilities. The profitability of some of the large international retailers has been impacted due to economic slowdown and aggressive costcompetition from online market platforms. Due to this, the vendors are facing the brunt of the pricing pressure.

Strategies to meet these challenges… Having factories which arecost-competitive, compliant and that keep moving towards

excellence in manufacturing, makes us the preferred vendor. Multi-country manufacturing capability, specialized factories, proper focus on skill development are best tools of company to overcome the challenges. We have embraced lean manufacturing concepts, green initiatives, building integrated manufacturing processes that will help us to continue to reduce our manufacturing costs.

New markets or focus in already present markets… We need to do both, as we are looking to tap into new markets in the Southern Hemisphere. We also need to keep moving towards higher levels of efficiency in manufacturing and supply chain processes to sustain our global competitiveness.

What is the mood… The recent initiatives like increase in drawback rates, supporting employment of new labour, etc. augur well for the industry. We remain positive on the outlook for the garment industry.

Positives that you see for 2017… We are expecting to see some improvement in retail demand as the economy improves in the US. Reduction of interest rates in India will also help us. We are in the midst of expanding our capacities and this will be the key goal for this year.


MAD ANL AL SUNDESH A M A N A G I N G D I R E C T O R, M. S. F A S H I O N S W EA R

Just 5 years old company, M.S. Fashions Wear started by Madanlal Sundesha, who has good technical know-how and experience of working as exports consultant to companies like Alok Industries Ltd. and Vijay Laxmi Group, has been acknowledged for his performance in exports to focus countries with a turnover of Rs. 103.93 crore in FY 2015-16. Being associated as a committee member with the Indo-Arab Chamber of Commerce and Industries, Madanlal is an expert of African markets which is the main focus of the company.

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.S. Fashions Wear has its own CHA and ITA license to provide best quality services and timely delivery to its buyers. The company is backed by own facilities to produce woven fabric in Tarapur (Maharashtra). Known for classic Indian hand embroidery fabrics, readymade garments and handmade imitation jewellery, the company has factories in Mumbai, Bhiwandi and Tirupur and produces both knitted and woven apparels.

Experience of 2016… The changes in the year 2016 were many and one of that is demonetization of currency. The buyers are losing confidence after demonetization and I fear that they can shift to Bangladesh, Sri Lanka, Pakistan and Vietnam for stability. The systems are not helpful at various levels. The cost is getting higher day-by-day due to various taxes and inter-state levies charged on products. Though we have our own logistics, there are issues with policies on the State

and Central Government level that pose challenges. At the international level, there were many crises – terrorism, change in Government in US, currency fluctuations in African countries and all these matter a lot.

Ideas and plans for 2017 Though it is difficult to predict about 2017 at the beginning of the year, but the situation will become clear after the Budget. This year migration of labour may increase due to elections in few states. Employment generation is also the focus of our Prime Minister Narendra Modi and Textiles Minister Smriti Zubin Irani. Moving on the same track, we are looking forward to setting up a new unit in Mumbai, which will help in creating more jobs in the coming times. Our vision is to achieve Rs. 200 crore worth of exports in the coming year.

Strategies to meet challenges… We have taken some steps to improve the system in our factory to open bank accounts

for all the workers and for the convenience of the buyers to counter for the delay in shipment due to demonetization, for payments of salaries and wages. Our inhouse facilities which includes washing helps to get the workmanship, desired finishing and overall best quality.

Expectations from Government… Our new Textiles Minister is providing lot of incentives to the industry which will change the mood for the industry. I am not happy with the way industry is forced to work as there are problems like power cut, transportation, labour, delay in getting raw material &yarn price hike, all are very disturbing for business. Similarly, fuel and electricity price is also an issue. While industry needs to improve quality, delivery, and give competitive price to match competitors like China, Bangladesh, and Sri Lanka, the Government should give better incentives for survival and growth.


DAL P A T A L O D H A C H A I R M A N, L O D H A I M P E X

Winner of the Award for highest exports to Japan, Lodha Exim, Jaipur clocked a turnover of Rs. 65.5 crore in FY ’15-16. Running 1,500 machines and having complete in-house facilities for embroidery, laundry and printing, the company has expertise in prints, as its USP. Using a variety of fabric blends, Lodha Impex offers entire range of apparels for ladies’ collections and also has some products for men and kidstoo.

Exporting mainly to Japan with expansions in Australia, France and now into America as well, Lodha Exim is the only company from the famous hub of Jaipur to be awarded by the AEPC this year. With quality as the hallmark, extensive quality controls are in place to ensure that the garment cannot move on to the next stage without passing the quality tests as the norm is of 100% quality check at the time of production and of the finished garment.

Also, emerging regional trading agreements can script a paradigm shift in future trade and investment flows. I hope that the ‘Make in India’ initiative and the robust policies unleashed by the Government will help Indian industry increase domestic investment and expand its share in the global market.

Biggest challenge for industry…

Outlook for 2017…

The key issues that need attention are lack of scale, absence of market access, infrastructure constraints, and high input costs, which are adversely affecting the competitive strength of the industry. We have to work towards eliminating trade barriers, and needs to take measures to expand market access.

After many initiatives in 2016, the Government is willing to provide all possible support by creating enabling frameworks. An important development in the global textile trade is the fall in China’s predominance, which presents a ray of hope for India to up its market share. However, the fast emergence of Vietnam and Bangladesh can upset India’s calculations in a changing market, driven by market access and the policy support given by the respective Governments to empower the textile chain.

There are many impediments to growth – technological obsolescence, structural anomalies, poor productivity of labour and machine, lopsided fiscal policies, multiplicity of taxes and levies, high cost of capital, redundant and outdated controls/ regulations, restrictive labour and industrial laws, lack of aggressive marketing, poor perception of Indian products abroad, procedural problems in exporting, poor infrastructure relating to transport,

The biggest challenge that the apparel industry is facing today is the cost disadvantage across major markets. India’s competing countries have zero duty access in these markets.

What needs to be done for growth of industry…

communication and banking, high power tariff, etc. Our industry requires being competitive and cost-effective by improving its productivity, product diversification and enhancing operational scale. The upgradation of workers’ skill is also a must along with the adoption of state-of-the art production technology and total quality control. The need of the hour is formulation of innovative strategy along with reforms in labour laws to address the emerging issues effectively in order to enable the country to secure a bigger share of the global textile market.

Suggestions to the industry… Our industry should gear up to attain its desired position in the global market. Considering the target for growth in exports, India should be able to double its share of the global textile and apparel trade from the present level of 5 per cent. India can achieve higher growth rates of finished products, as it has inherent strengths. India should aim to strengthen the textile value chain. Out of our total exports of textiles and apparel, more than 50 per cent is contributed by textiles. The scope of value addition is higher in downstream activities like fabric processing and weaving… Let us all go for these goals…!


M O JOHNSE M A N A G I N G D I R E C T O R, E R I C APP A R E L

With a production capacity of 1,50,000 pieces per month from three units at Vikhroli, Kalwa and Koparkhairne, Eric Apparel has buyers in Spain, the US and Middle East. Having specialization for casual garments for children, it also offers men’s and ladies garments. The company strongly believes that industry should think creatively in terms of new and upcoming fashion rather than working as a “product manufacturing company”.

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ver the years, Eric Apparel has gained recognition for its expertise to produce intricate garments and its professional working culture. During the almost 4-decade long inspirational journey of the company, from job-working to being honoured by the industry for its achievements, is a motivation for medium-level exporters. With a turnover of Rs. 49.68 crore in FY 2015-16, the company had showed its potential eight years ago, when it was awarded the ‘Emerging SME of the Year Award’ by Dun & Bradstreet.

Biggest constraints of 2016… The only challenge that we have faced is in maintaining our cost efficiency in terms of acquiring fixed assets in Mumbai area as well as dealing with high utility cost in Mumbai. At international level, the main challenge for us is depreciation of Euro, which has affected buying in many countries. Increasing competition from cost-effective countries such as Bangladesh, Pakistan and other upcoming textile manufacturing countries has made the garment manufacturing industry very competitive.

Strategies to meet these challenges… We are improving our standard of quality control and providing an effective customer service, which has helped us to maintain our position in the market and with our buyers.

Expectations from Government… We would like to see Government incentives for the textile manufacturing industry in all states because textile manufacturing is an industry that employs a large number of people all over the country. At the moment, only a few states have Government incentives in place which makes it challenging for the business from the other states to be competitive. We can all grow only when the country as a whole becomes competitive.

Industry needs to look at the new market… We feel that the industry needs to look at the new markets so that we can provide service to the community on a global scale; businesses reduce the risk of relying on a few markets and so fashion is communicated through our businesses in every part of the world.

Diversification in production lines, focus on designing team is the future… We feel the competition from the growing economies will make it challenging for us to survive as a business with growing costs in a city like Mumbai. In order to be competitive, we will have to diversify our production lines throughout the country. Finally, we think that we have to develop our designing team in order to move from a traditional manufacturing company to a fashion manufacturing company. Remaining static with old successful models of operation is not going to support growth, exporters have to come to terms with the changing times and accept new ways to run the business.

Positives that you see for 2017… In 2017, we expect an increased demand in the Latin and South American countries. Also other growing Asian and African countries are likely to increase the potential of growing fashion market for our industry as a whole. This motivates us as individuals and moves us a step forward in globalization.


R E U B E N J SW A M I D O S S CE O, C E N T U R Y APP A R E L S

Whatever most of the Indian apparel exporters find as missing elements, is a part of the working ethos of Century Apparels, Tirupur. The company which has been recognized for its performance in FY 2015-16 in the middle exporter category for achieving a turnover of Rs. 49.71 crore has a targeted focus on sustainability in all areas – people, plant and profit. The company set up in 1989 started operation only in 1992 once all systems were put in place.

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entury Apparels is a motivation for many exporters as it uses strengths like flexibility, financial discipline, strong corporate values, sustainable initiatives, open culture, strong IT systems to achieve its goal. The management cares for its people and gives them enough power and freedom of work to achieve both personal and organisational goals. Completing 25 years of dedicated operations, the company is now expecting huge growth, and within two years it is targeting to achieve magical turnover figure of Rs. 100 crore. A state-of-the-art factory in Kaniyampoondi (Tirupur), it manufactures garments for babies, women, men and special size segments, besides offering a good range of fair trade and organic clothing as it has all certifications like

GOTS, SA 8000 and Bio Rie to compete with the best in this segment. The company has every process in-house for complete control on quality.

Growth strategy‌ Apart from continuous efforts, sometimes growth comes from staying rooted. Our greatest driving force is our set of values; in fact our core values inspire and initiate us to do better. Like our financial management practices have been duly rated by SME Rating Agency of India. Our strategy is same, win-win relationship with all our business associates across the supply chain. Testifying to our International Quality Management Standards and Social Accountability Standards are the ISO 9001:2000 and SA 8000 certificates, respectively.

Focus in 2017‌ Currently we have nearly 800 workers and soon this figure will reach up to 1,300. As usual, focus on environment care and CSR activities will remain one of our top priorities. We are planning to install rooftop solar panels with the capacity of 125 KW. Training was also always a focus for us and it will remain so in future too. Our association for the care of Cancer patients and the elderly is very strong and we are supporting NGOs for this. Education of our employees about safeguarding the eco-system is also one of our practices. We believe that our efforts like waste management, water softening, reverse osmosis, vermi-composite and many more such things are bringing a big difference.


S. KA LYA N A S U N D A R A M D I R E C T O R, T R I G G E R APP A R E L S

As a part of the KG (Textile) Group of Coimbatore having annual turnover of over US $ 150 million, Trigger Apparels carries forward the same philosophy that quality comes second to no other factor in business and, therefore, practices stringent and rigorous methods to eliminate any ineffectiveness in the manufacturing system that brings compromise in terms of qualitative assurance. This focus on quality has helped the company grow fast in both the domestic and export market since its inception in 1999. Today with an innovative range of men’s wear and men’s jeans, Trigger Apparels is among the leaders in the category, touching an export turnover of Rs. 24.93 crore in FY 2015-16, which accounts for about 20 per cent of its total business.

Core philosophy… We believe that directional changes in the markets must be matched with a power to innovate. The Group’s focus is on innovation and the constant quest for better solutions, environmentally-friendly products, quality and productivity is backed by heavy investments in infrastructure, technology and bright human resources. Research, design and development works towards identifying new market trends, launching products and remaining competitive. After all, only innovations can satisfy a thirsty market that wants tomorrow’s products today. The research and development unit of the company has been recognized by the Department of Scientific and Industrial Research, Ministry of Science and Technology, Government of India.

Biggest constraints in 2016… It had been a challenging year, both internally and externally, viz. lack of skilled workforce/

shorter runs and changing expectations from the market. All these factors have made the business very competitive. Though there has not been any major shift in the way business is being done, but with fast fashion becoming a norm, we have to adopt for quick changes.

Strategies to meet these challenges… The company understands that not only is it important to invest in technology, but also people, so we keep training at different levels. Efforts to upgrade skills and improve efficiencies need to be done consistently to sustain. We employ a team whose work skills bring about efficiency in our system. They have been trained to exercise knowledge about each and every nook and cranny of mechanics. Their intricacy and focus towards their work has enabled the company to achieve a highly-valued status in the eyes of our clients.

New markets or strengthening operations in already present markets… New markets are essential but it’s important to be competitive for the big market, viz. EU/ USA, they are the core markets and will remain so for long. The industry is looking forward to some positive news on the FTA front; it will be beneficial for the entire industry if FTA is put in place.

Goals for 2017… We would like to sustain and grow with thrust on efficiency enhancement.


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NCR’ s APPAREL EXPORTE RS EXCITE D AS LAPF STUDIO OPE NS IN NOID A

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first-of-its-kind initiative that will benefit Delhi-NCR, especially Noida-based apparel exporters and domestic brands, LIVA – the fashion fabric brand of Aditya Birla Group – opened its LAPF (LIVA Accredited Partner Forum) studio in Noida. The studio, spread over an area of 1,500 sq. feet, features more than 1,200 samples of dyed/grey, viscose, modal and excel fabrics, along with a variety of yarns with detailed specification for both knit as well as woven segments which are being prepared by 70 LAPF fabric companies. Soon more such fabric manufacturers will add their samples to this studio. Every fabric hanger is barcoded (to get all information about the fabric) – from sampling of small to bulk orders to video conferencing with overseas buyers, the studio features many facilities. The LAPF Studio was inaugurated with an Autumn/Winter ’17 collection (focus on eco-identity, how to connect with nature), urban classic and mysterious lux and talks about how basics can be made more premium. Very soon the studio will present

ESSENTIALS In an exclusive discussion with Apparel Online, Rajeev Gopal and Manohar Samuel said that to support the garment exporters, LIVA will soon open itsstudio in New York as well, so that more and more inputs can be shared between overseas buyers and Indian exporters. The company also shared that they are working to promote Liva for the handloom sector. Read in detail in next issue of Apparel Online

the Spring/Summer ’18 collection too and which will focus on journey of human being. The studio also has an in-house technical team to discuss nitty-gritty and further use/issues of fabrics. Present at the inauguration of the studio, Rajeev Gopal, Senior Executive President & Global Chief Sales & Marketing Offtcer; and Manohar Samuel, President (Marketing & Business Development), both from Birla Cellulose; and Lalit Thukral, President, NAEC (Noida Apparel Export Promotion Cluster) were of the opinion that viscose is gaining importance in the fabric basket of products being exported from the country with growth of around 30 per cent in recent years, thereby reducing the exporters’ dependency on cotton-based fabrics.

fabrics etc., which were answered by top guns of LIVA.

The studio will create many opportunities for exports, as latest developments/collections of fabrics are now available at the doorstep of exporters. In the open session, many representatives from exporters and domestic companies raised their queries regarding price, sample options, various use of yarns and

One of the fabric heads of a Noidabased export house who didn’t want to be quoted said, “Nehru Place (in New Delhi) was the only option for us when we have to go for fabric’s samples or for urgent requirements which was never an easy option, as we have to visit many showrooms and sometimes even then we are not able to find solutions. This studio seems to be a good substitute of Nehru Place, at least to some extent.” Not only is it benefiting the garment manufacturers, but the studio also proved motivational for fabrics manufacturers as Anil Kumar Jain of Salasar Unnati Textile said, “This initiative has also motivated us for more R&D as we got to know what others are doing.” The company is looking forward to becoming a LIVA-accredited partner.

Team LIVA with industry representatives (L-R): Manohar Samuel, Lalit Thukral, Narendra Kumar, Riddhima Kapoor, Rajeev Gopal and Uday Khadilkar

Famous fashion designers Narendra Kumar and Riddhima Kapoor along with various exporters and domestic brands observed and appreciated the collection displayed at the studio. Sanjay Gulati, MD, Growel Impex, Noida said, “I feel exclusivity of fabrics and that too in the near vicinity of our office are important factors for our designers. Diversity in range displayed here is another important factor. The way the collection has been displayed is another good thing.” Vijay Shree, VP, Crest Design also added, “Whenever our buyers come to us, we can’t show them too much of fabric samples at one place, but now this studio will serve this purpose as it has really awesome collections.”

Team LIVA appreciated the support of Noida Apparel Export Cluster (NAEC) which was instrumental in the opening of this studio. Launching of the studio was also witnessed by many members of NAEC, who are very enthusiastic of the move.


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Home furnishing industry positive for 2017, but was not so happy last year

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he home industry has been in focus of late and amidst the extension of garment sector benefits to made-up units, dull market sentiments and shocking news of Target Corp. terminating business relationship with Welspun India for passing off cheap cotton sheets as made from premium Egyptian Cotton, for most of the exporters, 2016 was just about satisfactory. The good thing though is that a majority of them are enthusiastic about 2017 and clear about their plans and strategy, while a few of them are still in process to finalize the direction. There is greater focus on product development, participation in more international sourcing exhibitions, adding new product categories and bringing more processes in-house for most of the companies in 2017. Yet, small or big, none of the companies across India is planning to adopt a disruptive 360-degree approach, as market scenarios is critical. Companies depending majorly on domestic market are of the opinion that demonetization was having a more negative impact on them as compared to other players in the industry. Reacting to incentives announcement by the Government, exporters are of the opinion that it will take some more time to get advantage at the ground level. Irrespective of market, whether traditional like Europe, US or

Expert suggestions for 2017 “Home furnishing industry should work with proactive approach and expand capacities by taking the advantage of package announced by the Government. Industry should also focus more on export and especially on markets like Japan, Korea and Latin America which need to be explored and developed more. Down sentiments seem temporary and next quarter should give better results. As entering into an FTA is a long process, India should get GSP Plus (Generalised Scheme of Preferences) status like Pakistan, otherwise Government should enhance incentives under MEIS (Merchandise Exports from India) as India still doesn’t have level playing field compared to its competitors like Pakistan.” –Ujwal RLahoti, Chairman; and R K Dalmia, Ex. Chairman, TEXPROCIL

any other non-traditional market, exporters have similar experience from buyers’ side as price pressure and expectations have increased this year. “Volume business seems the only way to face price pressure which is growing day by day. Business was okay in 2016 as far as volume is concerned but from value perspective, it was hard. It was satisfactory that despite low sentiments demand did not fall too much. For me it is too early to say anything for 2017,” says Ashwani Kanodia, Director, Kanodia Global, a Delhi-based company having manufacturing facility in Panipat. One of the biggest tools to counter price pressures is more focus on product development which can compel buyers (to some extent) to work with them and even pay a little penny extra. “It was another routine year and even we were not having much hopes but whatever feedbacks are coming in from the buyers, the year 2017 should be alittle more positive. Though we already have design development as ourfocus, but now it will be enhanced even further. We will get some inputs from outside apart from more sampling efforts from our in-housedesigners. Experiments in colours and sizes will be another thing which we will try more in 2017,” said P K Krishnan, Managing Partner, Sri Jeyavel Exporters, Karur who is expecting 25 per cent growth in the new year. Wholesalers and chain stores of Sweden, Germany and Canada are

the core buyers of the company and focus will remain on the same. Increasing competition within the country and around the world is another reason which is driving companies to enhance their focus on PD. Shweta Darabari, Elite Eternally, Delhi emphasises that now companies are working much more seriously to really offer something new and different from others. “Strong product development is the only thing which gives a company the ability to negotiate with buyers. Very soon we will launch such products,” she said. Working with top or selected buyers that are continuously growing, supported some companies across the country to achieve good business during 2016 and they are expecting even more in 2017. As these companies already have enough focus on PD, or are diligently following only buyers’ indication for products, they are making effort to improve on other fronts. Ludhiana-based home furnishing giant Jawandsons is exploring technology for yarn dyeing as it plans to start a unit of the same in the next 6 months. “We are analysing the viabilities of this entire project and are hopeful about it, as till now things seem good and as per our expectations,” informed Gian Singh, Business Director, Jawandsons who is positive about overall business despite various pressures. The company is investing almost Rs. 2 crore on this new plant that will have initial dyeing capacity of


Ashwani Kanodia, Director, KanodiaGlobal

Ujwal RLahoti, Chairman, TEXPROCIL

3,000 kg per day. Turnaround time, be it sampling or delivery, is reducing and will reduce further. “As of now we have 14-15 days’ lead time for this process, which will come down to 3-4 days once we do it in-house. The company also reorganized its working systems and recently shifted its cutting, stitching and packaging to one single location. Mattress cover, a new product category for the company was explored this year. “Every year we are witnessing 10 to 15 per cent growth and hopefully 2017 will be good,” says Gian. On the other side, there are some companies who despite having niche product segments have suffered a lot in the past year. And it is not only the less demand which hurts them, there are other reasons and they are helpless on these fronts as Gajanand Sharma, from Vandana Handicrafts, Jaipur offering specialized handmade products with vintage/traditional strength of Rajasthan explains, “We are down by 25 per cent in this particular year and that too when we put all possible efforts to sustain our last year level. We participated in some international events but didn’t get buyers. Every year during the Christmas season, we used to get many small orders, it used to be the most happening time for us but this time there was no demand at all. Handmade items had good demand earlier but now as machine-made is very cost-effective and easy to wash and colour fastness too is better compared to handmade, customers prefer machine-made.”

RKDalmia, Ex. Chairman, TEXPROCIL

For some, new efforts made in 2016 bore fruits for them. Genesis, Jaipur claims to have got many new buyers in 2016 and is expecting repeat order from them in 2017. “We met almost 30 buyers in 2016 due to various exhibitions and direct contacts, hopefully order flow will increase from them in the new year as they are appreciating our products. We never offer same or similar products to buyers, every time we have new things to serve their purpose,” said Dimple Gudhaneia, Director, Genesis. The company uses surgical cotton in quilts rather than basic cotton like many others.

Domesticplayersstruggling Big chunk of companies working in the domestic market are not aggressive as of now as they strongly believe that it will take at least 2-3 months to overcome effects of demonetization. Sachin Gupta, House Attire, Ghaziabad who is manufacturing mainly cushion covers and sofa covers bemoaned, “Few of the portal that were selling reasonable numbers of products before demonetization, are now having almost zero sales and similar is the status of many top showrooms as they face heavy impact of the move.” But he also added that after this phase the market will be as active as it used to be.” Sachin is also going to add curtains in its product basket. Naman Narang of Ekta Loomtex, Panipat also shared that 2016 was a very negative year for them and as things stand

Rakesh Kumar, ED, EPCH

EPCH to focus on Latin America, CIS countries, Middle East and China in 2017 Export Promotion Council for Handicraft (EPCH), one of the most active EPCs of the country, is content with its performance in 2016 and is equally enthusiastic about 2017. Rakesh Kumar, ED, EPCH says, “The year 2016 was satisfactory as far as export performance is concerned. Handicraft exports during the year 2015-16 was of Rs. 21,457.91 crore with overall 6.85 per cent increase compared to last year. The major markets of handicrafts have been the traditional markets of USA and Europe. However, in 2017 the council will aim to enhance its reach in new markets of Latin America, CIS countries, Middle East and China.”

Jitendra Sodhi, CEO, India BuyingConsultants

today there is no clear idea how 2017 will shape up. Despite the challenges of the current time, there are some companies that comparatively had less impact and also have enough orders. One of the main reasons of the same is that they work ahead compared to others. “We experienced very good sales of home furnishing in 2016 and recorded higher turnover of 35 per cent from last year, margins also improved by 50 per cent as compared to last year. For ongoing 2017 order book is full till March end,” shared Harish Kumar Gupta, Chairman, Bella Casa Fashion & Retail Limited, Jaipur. The company is mainly working with top Indian brand retailers.

Buyer’sperspective “Being a buying agency and mainly doing American market, we have seen the demand for home furnishing rising over the years. In 2016, the trend has been more towards innovative designs and patterns. Customers are looking for more natural fabrics and a gamut of colours. We see that customers are willing to pay better prices for high quality products. The trend would continue for 2017 and would be dominated by prints. Knitted fabric has also seen an increase in demand for home furnishing. I feel the year ahead is very positive for the industry,” said Jitendra Sodhi, CEO, India Buying Consultants, Gurgaon.


DIRECTIONSBY

Trend Forecast Autumn / W i n ter 2017-18

he changing direction of the winds and seasons, summon along an abundance of hope, sensitivity and authenticity laced with a nostalgic undertone that is translating itself into culture, art, technology, science, music and films, architecture and hence, its way into design. As we already know, the overshadowing of past events that struck the world alike has been met with consumers questioning their relationship with the services and products they sign up for and utilize on a daily basis. Self-expressionism is on an all-time rise with society as a whole being more tolerant and accepting of different ideas, traits and belief systems. Reaching out to people, building stronger communities and revitalizing connections, is the call of the hour with individuality gaining a wider acceptance. Age-old beliefs, mainstream religious practices, value systems and traditions are being renounced with an increased emergence of intuitive and spirituality invoking paths with people becoming more empathetic towards each other as society. Like complementing Yin and Yang energies, people have been finding a balance between the over-bearing of technology and the essentials of digital detox, having realized the importance of each in their lives.

It is not a surprise that fields like mass media, fashion, and beauty have been catering to a very narrow demographic until recent years, but with the progression of different social movements, these industries are becoming more inclusive of diversity by challenging pre-conceived notions of normative beauty standards. Access to the internet is breaking barriers and outdated ideologies about minorities such as, specially-abled people, queers, people of different colour and gender preferences, etc. A wider acceptance and inclusion of them on mainstream platforms and their needs in the core of design and technology is labelling this previously often overlooked section of society, as a highly lucrative minority. As outdoor activities, fitness motivated lifestyles and co-creating platforms observe an increased trend, a sense of well-being will become a key and explore the dialogues between tech and anti-tech in a broader perspective. A penchant for clean lines and styling are becoming the norm. The emotive power of colour, sound, feelings and associations are evolving at a rapid rate. The focus is shifting towards single, relic-like objects opposed to abundance. Here we are presenting our 4 themes – namely Inskin, e-SCAPE, Esoteric and Co-Cult for the Autumn/Winter 2017-2018 season.


I N S K I N

Design acquires a true, raw, natural and imaginative beauty with a nostalgic undertone as society embraces sensitivity and authenticity. Increasingly felt, innovators and consumers start questioning their relationship with new products, apps and devices. Social media and innovative technologies improve empathy and connections by enabling experience of new ideologies and perspectives which will lead to revitalizing communication and connection the world over. Voice-controlled assistance is becoming more sensitive to emotional and distress queries. Technology is becoming increasingly personal and sensitive, bridging the gaping need and absence of human connection. This will become a prevailing subject across design, technology, art and culture – holding a functional element of sensitivity.


Whimsiland

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Authenticity | Transparency | Sustainability | Design focuses on meaning.

Cynosure

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Man and machine converge | People unify through the internet | Human-sensitive apps | Technology with an added personal touch | Technology replaces absence of human connection.

Biblichor

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Accepting | Sympathetic | Reconnecting | Coming back home | Foreign cultures | Minimized effort and barriers.


e - S CA PE

Alone no longer means Lonely. People are turning inwards for satisfaction and finding a balance between the over-bearing of technology and the essentials of digital detox required in today’s day and age. Magic, spiritualism and astrology are undergoing a renaissance, as consumers shift away from mainstream religions. People are looking upward and inwards – giving importance to what really matters. A quest for meaning in particular will be influencing all outdoor activities, fitness motivated lifestyles, co-creating platforms – all such pursuits are tapping into a realistic aesthetic. This sense of well-being will become key and explore the dialogue between tech and anti-tech in a broader perspective.


Elixir

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Healthy tech-fitness bands, multi-user online art platforms, etc. Compliment going outdoors, adopting a healthier lifestyle, co-creating platforms | Code-to-cure technologies | Being fit becomes the new healthy | Voice the voiceless | Bettering the planet.

Juxtaposition

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New found balance between benefits of the digital world digital detox | Society has accepted the influence of technology in their lives and will now be headed towards adopting and utilizing it for the better | Information overload urges people to prioritize | Sharing of personal experiences to help and educate others witnessing similar experiences.

P e t r i c h or

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Youth indulges in spiritually enriching experiences, meditation and healing activities | Astro-lounges, astrotourism, sound baths, etc. become popular. | Solo-travel | Dependency on external stimuli will cease as people turn inwards for a deeper meaning.


ESOTERI

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In an era dominated by individuality, people are currently shackling the norms set by society and questioning the why’s and why not’s of traditionally held beliefs and value systems. Consumers are realizing the importance of being guided by the beauty of their own thoughts and are rejecting anything that has even the slightest whiff of something that does not resonate well with them. Access to the internet, which wasn’t there in previous generations, has allowed us to see the lifestyle and representations of queer people more closely, know their stories, empathize with them and question their situation. We are better informed about queer life and communities than generations before us and are hence able to be more accepting. Increasing influx of specially-abled people, people of different colour, gender preferences, etc. in mainstream platforms will lead to a wider acceptance and inclusion of them in society which will in turn get to the heart of design and technological innovation.


Alt e r Ego

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Growing acceptance of a less traditional lifestyle | Rise of individualism as a culture | Non-adherence to social rules and customs.

Youthanism

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Tolerant society | Self-expression through social networks | Embracing the queer | Realism |Technology is erasing traditional identifiers | Old demographics will become obsolete designers and companies rethink what they make and how they sell it.

Cheap Thrills

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Personalized skincare, smart appliances and smart mirrors | Imperfection and individuality give rise to DIY and customization projects | Inclusive design for differently-abled and the old.


C O - C U LT

Quality over quantity will gain more importance for consumers. There is an increased level of contentment being found in spending money on living rather than on accumulating or having things – people want to live experiences. The focus will shift towards experiential marketing efforts. Retailers are opting for gradient merchandising schemes that create a mesmerizing experience for the shopper in order to offer genuinely enticing retail concepts. With Graphic designers like Brian Pollett’s 20-day "binge", illustrations created under the influence of 20 different drugs gaining acceptance, more unconventional experiences will receive popularity and cause a fundamental change in preconceived ideas and notions.


One World Vacation

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Openness to gender identities | More women actively joining sports and sub-cultures previously reserved for men | Communities of the like-minded | Community-driven interactions | Thematic eateries, parks, festivals, concepts and classes see a rise.

Kinship

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Enriched global relationships | Products tell vivid tales of places, histories and cultures | Shared emotional viewing experiences – increased live-streaming and video chats | Technology acts as a unifier | Formation of global youth tribes | Borderless micro-economies | Refugee safe-zones | House-to-human interaction | Materials infused with human ingenuity.

Eclect ic Wildernes s

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Sub-cultural activities acceptance of aboriginal communities | Private and unused spaces will be utilized as public-interaction spaces | Boost in art, music and cultural pursuits.


K NI T

W OV EN

Soft, empathetic moods come alive through subtly faded surfaces merging into fragile brick like textures over jerseys and knits, adding a nostalgic touch. Classic knits gain a bold makeover when stitched, embroidered in contrast threads with geometric inspired patterns. Mix-and-match of fabrics and textures provide a decorative focal point for knits. Simple and traditional knitting techniques rendered in metallic threadwork provide a new angle with detailing that stands out. Structural stitches and cable knits emulate the perfect sense of balance.

Vintage hand embroidered domestic knit and crochet patterned textures inspired by traditional hand-me-down motifs find their way on homespun fabrics and knits in contrasts. Neutrals dominate irregular yarns and cross-stitch detailing for vintage effects. Patchwork, colour blocking and unfinished detailing are translated to evoke a sense of rawness and diversity. Lace and crochet embody diversely exquisite detailing, translated through geometric patterns and nature inspired motif imagery in doily and filigree inspired techniques.


Transparency | Sensitive | Fluid | Multi-Sensory | Perfect Imperfections Eclectic | Erratic | Youthful | Nostalgic | Unified | Intricate | Kinship Eclectic | Juxtaposition | Balance | Symmetry in Asymmetry.

P R I NT S

&

G R A PH I C S


SILHOUET T

E

The shoulders get bigger and the jackets gets shorter – expect exaggerated and rounded shoulders, puffed up sleeves and cropped jackets – bomber, varsity or puffer – take your pick. Accentuated midriffs that are tied, knotted, cinched or belted make a case for robe-like silhouettes through wrap jackets, blazers and dresses. Flares mellow down a bit, presenting themselves as details in wide leg pants or trousers and menswear inspired blazers. The lengths are kissing mid-calf, grazed by soft pleating or structurally flared cropped pants.


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Speed to market, Pratibha Syntex supporting buyers, completing orders in 3 to 4 weeks

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hallenges like fast fashion, smaller orders and shorter lead time are pushing apparel exporters to think of innovative ideas to bag more business. Pratibha Syntex (Indore), a renowned name in Indian apparel export industry known for its sustainable initiatives, is one such company which is taking some measures to stay competitive in the market. The company is completing orders in three to four weeks. Explaining more on it, Atul Mittal, VP – Garment, Pratibha Syntex told Apparel Online, “This is our effort to support our buyers and retailers as we understand their struggle. Capacity reallocation and monitoring is the key…, which is in process currently. The challenge is to keep the pace right from yarn to fabric stage.” He further added that this concept is for all its buyers, and order-size under this segment doesn’t matter (whether big or small). The company is doing business of almost Rs. 433 crore per annum and expects good growth in the current fiscal.

Narinder Chugh receiving the Highest Global Exports by New Entrepreneur award from Smriti Irani, Union Textiles Minister

Narinder Chugh: from tyre trading to fast emerging garment exporter

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lmost one-and-a-half years back, Narinder Chugh was not much aware about the garmenting business…, but now his company – Million Exporter, Ludhiana has been recognized by AEPC with the prestigious award of Highest Global Exports by NewEntrepreneur. Earlier engaged in running the family business of tyre trading in Ludhiana, Narinder who had interest in fashion, decided to take Rama Krishna Knitters on lease, one-and-a-half years back. Initially, Narinder struggled a lot to understand and improve systems at the factory, for which he made several changes. “Things were really difficult for me as at the age of 53, I had to become a student again to learn all about garmenting, but I was determined, so I continuously worked to understand the nuances of the garment trade and now I love this business,” says Narinder. Motivated by the ‘Make in India’ campaign, Narinder hired good professionals from other organizations and kept the focus on improvement. “As the unit already had systems in place, it helped me a lot; but the thing that I had to improve was the way of working. I think everything from a customer’s perspective rather than an exporter’s or production manager’s perspective. This approach is appreciated by my buyers too,” Narinder shared with Apparel Online.

Atul Mittal, VP–Garment, Pratibha Syntex

Talking about the changes he brought into the organization, Narinder averred,

“Earlier the company was exporting mainly to Dubai and that too cheap products only, but I felt strongly that exports to the US will be a better option, and not just because it is a traditional market for Indian apparel export industry. I upgraded the products as well,” adding, “I was expecting Donald Trump’s victory and hope for its positive effects on India as he supports the country. Exports to the US will grow more compared to any other main market across the globe.” Currently having 900 stitching machines and an annual turnover of Rs. 60.5 crore, the company has enough orders for the next six months. Narinder further added that his next move is to focus on Indian domestic apparel market and to work with organized and established brands. “Our samples have already been approved or are in the process of approval by some of the prestigious apparel brands like Allen Solly, Van Heusen, Color Plus. We have the advantage of having state-of-the-art manufacturing unit,” he reasoned. With a daily capacity of 35,000 pieces of hoodies, jackets, track suits,etc., Million Exporter has recently started manufacturing kids wear too. Currently, the company is exporting 70 per cent of its garments; and depending upon the response from domestic brands, it will decide to expand its production capacity.


Satish Gupta is new Chairman of Indian Silk Export Promotion Council is must; we have been assured by the Union Textile Minister for all kinds of support,” he said. Dr. Bimal Mawandia of Vineetaz Exports, Gurgaon has been elected as Vice-Chairman of the Council.

Satish Gupta of Moda Cocktail, Noida is the new Chairman of the Indian Silk Export Promotion Council (ISEPC). He was serving earlier as ViceChairman of ISEPC. Talking to Apparel Online, Satish was optimistic for the growth of silk export industry. “Definitely my priority is to enhance the silk export from India and I am hoping that despite all ups and downs we will be able to achieve annual export of US $ 500 million of silk products in next two years. And for this, cooperation of silk industry and Indian Government

The new Chairman of ISEPC –Satish Gupta of Moda Cocktail, Noida

The 33-years-old organization, ISEPC, is a company ‘not for profit’ under Companies Act duly sponsored by the Ministry of Textiles, Government of India. It has a membership of 853 regular exporters of silk products, whereas more than 1,800 exporters have registered with the Council.

Solapur to set up garment park The Government has decided to set up a Rs. 300-crore garment park in Solapur to promote the city as a major garmenting hub. Nearly 27 acres of land belonging to erstwhile Narsing Girji Mill in Solapur has been identified for the same. The ground-breaking ceremony of the park would take place on 26th January. The park will provide employment to over 60,000 workers, said Subhash Deshmukh, Textiles Minister, Maharashtra. It may be mentioned here that the uniforms industry, including school, corporate wear and Government forces is worth over Rs. 18,000 crore, of which nearly Rs. 10,000 crore is in the organized sector.


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Make GST practical…, exporters suggest MoT Ministry of Textiles (MoT) seems to be active in regard to Goods and Services Tax (GST) and its implications on Indian apparel and textile industry. Looking at its complications which may affect the industry, a stakeholder consultation meeting on GST was held in New Delhi by MoT in which various representatives of textile and apparel industry shared their concerns. Representatives from Central Board of Excise &Customs (CBEC) were also present at the meeting. Chaired by Union Textiles Minister Smriti Irani, the meeting’s objective

was to discuss and understand implications of GST. At the meeting, one of the top apparel exporters of India asked, “We are making 1,500 styles per month and each style has at least 35 inputs. So we have to make 52,500 (1,500 X 35) invoices per month according to current GST provisions. And this is only in one state; we have units in 10 states. So state-wise we have to make 5 million invoices every month. How can it be practically possible…?” Manish Sinha of GST Council, who made a presentation on GST, assured that whatever suggestions

Textiles Minister had separate and specific meetings with other stakeholders of the industry, like she along with top officials of the Ministry met knitwear &hosiery stakeholders. Similarly, she too had meetings with made-ups sector.

have been given by the industry will be implemented. It was also decided at the meeting that soon the Textiles Minister will meet Finance Minister Arun Jaitley and share her concerns about GST. In another development, the Textiles Minister also chaired Inter-Ministerial Consultation on Textiles Policy, which was attended by Skill Development Minister Rajiv Pratap Rudy; Minister of State (IC) for Labour and Employment, Bandaru Dattatreya; and Minister of State for Finance and Corporate Affairs, Arjunram Meghwal at the Constitution Club, New Delhi.

Textiles Minister honours handicraft exporters Union Minister of Textiles Smriti Irani recently gave away awards for outstanding performance in exports of handicrafts for the years 2013-14 and 201415 to various handicraft exporters at the 21st edition of EPCH Awards. More than 130 exporters got recognition in various categories. As far as awards related to textile-based handicrafts are concerned, Malani Impex Inc. (Jaipur) and Mani Fashions &Accessories, Noida won accolades in this category, while House of Incas (New Delhi) was honoured for Zari Handicrafts. Ahujasons Shawl Wale (New Delhi) bagged the award this time too like previous years in Shawls as Artwares category. Certificate of Merit in the same category was given to Mir Handicrafts (New Delhi) and Citrus Fashions (Kolkata). Jumbo International (New Delhi) offering handprinted and handmade products, won Excellent Export Growth Award at the event.

Certificate of Merit for Excellent Export Growth. RB Industries (Varanasi) got the same for handmade textile decorative items. For leather handicrafts, Essgee Leather Goods (Farrukhabad) and Handicraft Villa (Jaipur) were given Certificate of Merit.

Nupur Batra of Accessories By Nupur receiving WomenEntrepreneur Award (Northern Region) with her daughter at the event

Accessories By Nupur (Noida) was honoured with Women Entrepreneur Award (Northern Region), while Sri Devi Exports, Rajahmundry and Sri JJ Lakshmi & Co. (Narsapur) got Certificate of Merit in Lace, Laces &Embroidery category. Kavitra Export (New Delhi) got Top Export Award for Indian items (readymade

garments/fabrics); Kariwala Industries Ltd. (Kolkata) got award for exporting (various kinds of) bags. Another company known for its bags – Green Packaging Industries (Kolkata) was also awarded. For exporting environmentfriendly handicrafts, Pankaj International (Kolkata) got

At the event, Rakesh Kumar, ED, EPCH highlighted the achievements of the association in his address and said that handicrafts are the only category in export items which has shown very good growth despite challenging market conditions in India as well as overseas markets. Pushpa Subramanium, Additional Secretary, Ministry of Textiles, and Dinesh Kumar, Chairman, EPCH were also present on the occasion. While congratulating the winners, Smriti Irani suggested EPCH to honour physically handicapped craftsmen in the handicraft industry alongside recognizing tribal arts as well.


Textiles Ministry questions appointment of AEPC SG Appointment of Ram Singh as Secretary General (SG) of Apparel Export Promotion Council (AEPC) is under cloud of suspicion as questions in this regard have been raised by the Ministry of Textiles (MoT). Ram Singh, IPS Officer of Punjab Cadre (1994 Batch), who is currently the Director at Ministry of Textiles on deputation basis, was appointed as SG – AEPC in June 2016. The position of SG in AEPC is of utmost significance as the person designated is supposed to be a Government representative in the council. Apparel Online has seen the copy of the letter written by a

Director-level officer of MoT to Ashok Rajani, Chairman, AEPC. This letter raises questions on the selection process. “There seems to be no evidence of parameters that were followed by AEPC while shortlisting the 118 applicants for the post of SG of AEPC to 18 candidates,” the letter stated. It further added, “The decision of the selection committee of AEPC to further reduce 18 shortlisted candidates to 9, considering the claimants who had crossed or are approaching the age of retirement, is without any reason since the advertisement

issued by AEPC, while calling for applicants, did not mention the age-limit for the contenders.”

Questions raised…! RamSingh, the newly appointed Secretary General of AEPC

The Ministry has also asked for clarification on how the applications were shortlisted and the dates on which these advertisements appeared in the selected newspaper. Sources of MoT told this correspondent that this matter is going on from the past few months and that they are not satisfied with the previous reply of AEPC in this regard. “MoT is serious on this issue and seeks clarification ASAP,” an official told on the condition of anonymity.

16 exporters get ‘free' stall at IIGF Finally, the long struggle of Apparel House Exporters Association (AHEA) with AEPC brought little benefit for the exporters as 16 of them, who have paid their maintenance charges of showrooms at the Apparel House, will get ‘free’

booth in the India International Garment Fair (IIGF). Stalls with size 18 sq. metres for a single showroom have been allotted to 16 of these apparel exporters, and for those who have two showrooms at the Apparel House, the size is double.

These exporters are happy with this development as it is not only the cost of the stall of 18 sq. metres that they were looking for…, but it also raised an important issue of what benefit they are gaining by having their showrooms at the Apparel House as no activity

takes place there and their showrooms have become mere ‘white elephants’ to be only cared for… To mention, it costs more than Rs. 1 lakh to take 18 sq. metres booth in the IIGF. Commenting on this, Rajiv Kapoor of AHEA and MD, Affordable Exports, Delhi told to Apparel Online, “We, the showroom holders, were forced to lose export opportunities for over about 10 years, so this step is just like a drop in the ocean.” And soon added that as of now this decision is just for the current fair and is not a ‘permanent solution’. The fair, scheduled for January 18-20, 2017 will host around 301 participants amid 1,200 anticipated buyers. Among the buyers, 896 have already registered from across 70 countries. The allotment of stalls took place in Delhi on 28th December in the presence of 4 observers from apparel export industry.


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India ITME 2016

Industry across India is geared up for expansion and upgradation M

Advanced technology has always motivated entrepreneurs to expand, upgrade or even diversify within their parent business. Over the time, as the market becomes fiercely competitive, technology has also become a tool for survival. The recently concluded India ITME 2016 fair (the 10th India International Textile Machinery Exhibition) in Mumbai, organized by India ITME Society, is undoubtedly India’s biggest textile technology event that witnessed visitation from lakhs of industry-informed people from all corners of India, and despite mixed market sentiments and demonetization effects, most of the companies are eager to expand and invest in new technology. Apparel Online met many such companies and was impressed with the resilience of the players and their determination to grow.

Team from Ichalkaranji (L-R) –Govinda Marda, Arvind Cotsyn (India); Rahul Bohara of Swadeshi; and Shreyas of Ambrish Sarda Group

ost of the companies, be it big or small, that are going in for expansions are confident that soon the market will pick up and demand will increase. Players from fabric hubs of Ahmedabad, Ichalkaranji, Surat and other North Indian hubs, were all positive, which augurs well for the industry. Even garment exporters looking for new technology were upbeat for 2017. Kumar Agarwal, young Director of Kumar Cotton Mills/Venus Denim, Ahmedabad (composite mills) is planning to foray into terry towel business, while also increasing the capacity of denim manufacturing. “Down the line, we are planning to invest Rs. 200 crore for expansion of our denim capacity which is currently 80,000 metres per day to almost double. As far as terry towel is concerned, it is at the planning stage and our plant may be of about 100 tonnes initially,” he says. Currently having capacity of processing 1.5 lakh metres of fabric

Team from Ahmedabad (L-R) –Shreshth Bajaj, Director –Weaving Division, Bajaj Processors Ltd.; Kumar Agarwal, Kumar Cotton Mills/Venus Denim; and Ritesh Agrawal from Prem Processors

per day, the company is supplying fabric majorly to the Indian domestic players with only few export-oriented units in its profile, about 10 per cent of the fabric is exported to Sri Lanka and Vietnam. Though many companies admitted that they are unsure of the market movement in the New Year and some of them have currently even cut down their production by 50 per cent, they still are looking for expansion opportunities, and the reason for the same is the positivity. “Even in this difficult scenario we have to expand to survive and grow. What we can try at our level is to minimize the risk,” says Shreshth Bajaj, Director – Weaving Division, Bajaj Processors, Ahmedabad, who isalso proactive about expansion. Currently manufacturing 3 lakh metres of grey fabric, the company has in-house capacity to process 20 lakh metres of fabric per month. Expansion plan is for another 4 lakh metres of grey

Bidyut Kumar Singha, DGM(Outsourcing), BirlaCentury


“Currently we are outsourcing 20 lakh metres of grey fabric per month (nearly 40 per cent of our total need) from various hubs across India. Now we are further planning to increase outsourcing as well as in-house production.” – Bidyut Kumar Singha, DGM (outsourcing), Birla Century

fabric. Currently some business operations (denim-related) of the company are outsourced. “We might put a unit of the same also but as already many people have entered into denim segment so outsourcing is an easy option,” says Shreshth. Earlier there was an indication of a glut in spinning, but it is heartening to see that companies are now adding spindles. Arvind Cotsyn (India), Ichalkaranji is adding 20,000 spindles in next few months and after this expansion it will have total 60,000 spindles. Govinda Marda of the company says, “According to my estimation the recession of the last two years should have ended with the year (2016) though demonetization affected the industry again. But all this is not worrisome to us as we still have hope that very soon the market will pick up.” Rahul Bohara of Swadeshi, Ichalkaranji is also waiting for the market sentiments to pick up as he has a ready ‘shed’ 48 looms but production has not started. Rajkot-based Angan Textiles having 72 airjet looms is further adding 24 looms as informed by Mahesh Chothani, Director of the company who is making denim fabric and fabric of bed linen for Indian market. There are some companies that are more active on market front rather than capacity enhancement. Ambrish Sarda Group, Ichalkaranji having a ‘wait and watch’ approach to the market, is not going in for expansion, but exploring new market opportunities. The company having major focus on domestic, is moving towards export of fabric. Bhagwati Cotton & Spinning Mills, Ludhiana, having 18,000 spindles and making 2/32 acrylic and single thirty mèlange yarns, was till last year totally into domestic market and from last one year they have started moving towards export. As of now 10 per cent of our total production

is being exported to Saudi Arabia and Bangkok; the target is to increase it to 30 per cent. Prateek Verma, GM of the company and a technical expert informed, “Our main concern is to reduce power and labour cost and at the ITME we were impressed with the autoconer machine (in spinning process) by Savio from Italy, as it saves nearly 20 per cent power consumption.” LB Maurya, Director of Maurya Exports, Ludhiana making knitted fabric and variety of leggings (manufacturing 20,000 leggings per months) informed that he is looking forward to expanding and making its presence in the export market. About ITME he observed, “I liked the digital printing segment at the event, though it was disappointing that the sewing segment was missing.” Some medium-level companies that are comparatively new in trade or working in limited capacities were also looking to grow by diversification or forward integration. Surat-based Milan Bagadiya, Owner of S R Health and Hygiene, is currently offering leggings (Sanado brand) and is coming up with a new plant of hygiene products like napkins and diapers. With a capacity of 60,000 leggings per month and exporting 30 per cent to Bangladesh and Sri Lanka, Bagadiya shared that they are very cost-effective as they use different kinds of fabrics which makes it possible to work with these two countries. “For our new plant, we have a tie-up with a technical institute for consultancy. With an investment of Rs. 2.5 crore it is expected to start in May 2017,” said Bagadiya. Currently manufacturing polyester fabric, Micro Synthetics, Surat is now planning to start viscose fabric and further add ladies’ garments. Sushil Kothari, Owner of the company firmly believes that 2017 is a crucial year and even the perfect time to enhance the business.

Team from Ludhiana (L-R) –LB Maurya of Maurya Exports; Subodh Sachan, GM(Processing), Supreme Tex Mart Ltd; Prateek Verma, GM, Bhagwati Cotton & Spinning Mills; and Atul P. Verma, Senior Manager – Dye House & HTC, Vardhman Spinning & General Mills

E SS E N T I A L S Atul P. Verma, Senior Manager – Dye House & HTC, Vardhman Spinning & General Mills was looking for an automated process for material handling during various processes of spinning, dyeing and finishing but was disappointed as he could not find anything in this regard. But he liked a circular knitting machine in which direct yarn is being manufactured by roving and simultaneously it was doing knitting too. Till now this process was common only in weaving.

Some companies are not expanding but upgrading themselves as they are concerned about productivity and cost-competitiveness. Having 200 powerlooms and 200 stitching machines for shirt manufacturing for organized retailers, Nilesh K. Shah, Director, KK Silk Mills is looking for upgradation in his weaving unit. “We are quite positive about our shirt business, as it will definitely grow in near future. Our priority is automation and that too within our budget,” said Shah, whose unit is in Valsad. The bigger mills have focus to move forward with sustainable technologies. With processing capacity of 12 tonnes per day and 2 lakh pieces per month in garmenting (tees, undergarments, track suits), Supreme Tex Mart Ltd., Ludhiana recently added RO system in its ETP as it has recently added ultra-filter with an investment of Rs. 2 crore. The company is also making sweaters for prestigious brands like M&S. Subodh Sachan, GM (Processing) of the company was exploring mercerising and rotary printing machines at ITME. “There is little upgradation as far as processing segment is concerned, but I couldn’t find any major breakthrough or innovation,” he added.


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Government sanctions Rs. 200 crore for Tirupur dyeing industry

President Mukherjee visits ATDC, Chhindwara

The Government of India has taken cognizance of Tirupur dyeing industry, which was on the verge of closure due to severe financial crisis, by sanctioning Rs. 200 crore to the industry. Recommended by the Ministry of Textiles, the Ministry of Finance has sanctioned the grant to the State Government of Tamil Nadu for the 18 Common Effluent Treatment Plants (CETPs)

On a ‘Mission to Movement’ tour, President of India, Pranab Mukherjee along with Madhya Pradesh Governor Om Prakash Kohli; and Kamal Nath, MP from Chhindwara visited Chhindwara centre of Apparel Training &Design Centre (ATDC) to get the first-hand demonstration of different workstations including cutting machines, the computerized sewing machines and the pattern making room. Hari Kapoor, Senior Vice Chairman; G S Madan, Vice Chairman; and Darlie Koshy, DG &CEO, ATDC were also present on this occasion.

as an interest-free loan to be converted into grant-based on the performance of the CETPs. The move will help ailing CETPs and 450 dyeing units to recover from the financial crisis and help them to complete the project to achieve 100 per cent capacity utilization. More than 450 dyeing units in Tirupur had collectively set up 18 ZLD-enabled CETPs with a total cost of Rs. 1,013 crore.

Century Textile hosts workshop ‘Digital Week – Cashless Transaction' Century Textile and Industries Ltd. hosted a workshop ‘Digital Week – Cashless Transaction’ so as to exhort its workers to make cashless payments, better understand digital modes of payments, and overcome cash crunch during demonetisation. A statement issued by the company read, “We have organised Digital India Workshop from December 13-17 at our Jhagadia unit in Gujarat in collaboration with State Bank of India and HDFC Bank.

The purpose is to empower workers to make cashless transactions using electronic devices and channels. It is a first-of-its-kind workshop organised in Indian textile industry,” R K Dalmia, President of the company said, “To take this initiative step ahead, we will train and educate each and every workman and staff for cashless transactions with the help of our bankers. Within next six months, all the 1,500 workmen and 230 staff will be tech-savvy and will do cashlesstransactions.”

Top officials of Century Textile and Industries Ltd. seen at the workshop

Pranab Mukherjee, President of India visiting ATDC. Also seen is Darlie Koshy (extreme left)

THEPRESIDENT’s VISIT ACCELERATEDTHE ENTHUSIASM AND COMMITMENTTOWARDS SKILL INDIA EFFICIENCY, EMPOWERING BOTH WOMENAND YOUTH. The President also interacted with the Sewing Machine Operator Course students under ISDS, MoT and B. Vocational Course candidates at the Integrated Campus. He appreciated the infrastructure and quality of training at ATDC and the trainers’ focus on providing maximum hands-on technical skills through practical approach supported by factory visits and internships. Darlie Koshy said, “The President’s visit would accelerate the enthusiasm and commitment towards skill India efficiency for empowering Women and Youth. Skill is the new mantra for the innovation and Digital age economy. Apparel sector provides very positive Labour-Capital ratio and has huge employment potential for all family members from 18 to 50, and particularly the women and disadvantaged youth.”


EXPORT STATISTICS

Indian apparel exporters’ performance show little signs of abatement January-September

2016

Even after nine months of 2016, Indian apparel exporters working with the European market couldn’t really reap the benefits emanating out of China’s cascading down its apparel exports in the region. While Chinese apparel exports to the EU declined by (-) 9.10%, Indian exports posited a marginal growth rate of 0.56% in terms of value. The average UVR for India was, however, high at Euro 20.04 (per kg of fabric equivalent) as against Euro 15.63 (per kg of fabric equivalent) offered by China.

Global apparel imports by the EU: Jan.-Sep. 2016

1

Import of ladies blouses register substantial growth

2

India’s export of T-shirts increases to EU

Total Increase in Volume

4.91% Total Decrease in Value

0.13% Percentage Decrease in UVR

In the first nine-month period, EU import of ladies blouses increased by 8.94% in volumes; values also grew by 2.09%. For India also, the segment registered growth of 12.21% in volumes and 3.21% in values.

In the period under review, while the category’s export to the EU surged by 6.04%, values increased by 0.45% in spite of the decline in the overall imports of T-shirts by the EU by (-) 0.80% in terms of value.

Apparel imports of the EU: selected countries (Qty. &Value in mnKg& Euro) Country/ Category

Jan.-Sep. 2015 Qty

Jan.-Sep. 2016

Value

Qty

% Increase/Decrease

Value

Qty

Value

WORLD Knitted

1856.16

30202.71

1972.67

30225.89

6.28

0.08

4.82%

Woven

1517.45

31428.34

1566.63

31324.38

3.24

-0.33

Total

3373.60

61631.05

3539.30

61550.28

4.91

-0.13

Average UVR in first nine months of the year was Euro 17.39 per kg of fabric equivalent

Knitted

672.27

10440.03

673.79

9423.87

0.23

-9.73

Woven

668.22

12482.64

658.90

11411.71

-1.39

-8.58

1340.48

22922.67

1332.69

20835.58

-0.58

-9.10

Knitted

116.36

2019.80

125.23

2043.79

7.62

1.19

Woven

80.77

2111.43

82.06

2110.52

1.61

-0.04

197.13

4131.23

207.30

4154.31

5.16

0.56

Knitted

475.08

6108.89

527.72

6486.97

11.08

6.19

Woven

277.69

4474.11

309.69

4938.19

11.52

10.37

Total

752.77

10583.00

837.41

11425.16

11.24

7.96

Knitted

35.58

674.06

43.69

666.25

22.79

-1.16

Woven

23.48

521.34

19.87

459.29

-15.37

-11.90

Total

59.06

1195.40

63.56

1125.55

7.62

-5.84

CHINA

Total INDIA

Change in Knitted

Total BANGLADESH

Quantity

6.28%

Value

0.08%

Change in Woven Quantity

3.24%

SRILANKA

PAKISTAN Knitted

65.27

708.78

74.09

803.33

13.52

13.34

Value

Woven

70.32

1021.01

75.29

1052.84

7.07

3.12

0.33%

135.59

1729.78

149.39

1856.16

10.17

7.31

VIETNAM

[The information has been extracted from EU custom site and further analyzed.]

Total

Knitted

28.54

575.16

31.81

680.10

11.46

18.25

Woven

65.55

1509.34

67.71

1574.12

3.29

4.29

Total

94.09

2084.49

99.52

2254.22

5.76

8.14


3

Ladies skirts records maximum negative impact for India

4

Bangladesh sees good growth in suits/ensembles

5

Foundation garments decreases in value for India

Ladies skirts can be said to be the most setback product category for India as quantities in this category were down (-) 22.91%, while values dropped (-) 6.15%. Even Bangladesh noticed quantity decline in the category’s exports to the EU.

6

Sweaters lists growth in exports from Bangladesh

7

Babies wear progresses for India

8

Huge growth in undergarments for Vietnam and Bangladesh

In the period under review, there was a substantial growth in suits/ ensembles for Bangladesh with quantity increasing 23.23% and values increasing 17.46% despite EU’s import of the same being down by (-) 3.69% in quantity terms.

Foundation garments for India registered a decline in value in its exports to the EU by (-) 9.13%, whereas its quantities surged by 4.73% in the category for the first nine months of the current year. In its total imports of the category, EU too registered a dip of (-) 0.17% in terms of value.

While exports of sweaters from Bangladesh were up 13.08% in volume, it increased 7.92% in value terms. Vietnam too noticed increase in quantity of sweater export to the EU of 4.63% in volume and 4.97% in value.

India registered growth in babies wear export to the EU of 24.02% in quantity and 15.17% in value. Bangladesh noticed 0.90% in volume growth in the export of same product to the EU while value grew by 3.34%. Value wise Vietnam lost (-) 0.15%, but there was growth in its volume by 1.81%.

Vietnam has registered a whopping 86.96% increase in volume and 72.65% in value of exports in undergarments to the EU in the first nine months of 2016. Bangladesh also registered stupendous growth in the category with volume increasing 32.82%, while value saw growth of 26.87%.

Item-wise percentage increase in total apparel imports by EU from China, India, Bangladesh and Vietnam: Jan.-Sep. 2016 as against Jan.-Sep. 2015 (Value in mnEuro and qty. in mn kg) Exports toEU Total Imports by EU APPAREL TYPE

Babies Wear

Qty Actual

Value Qty % Actual Change

China Value % Change

Qty Actual

India

Value Qty % Value % Actual Change Change

Qty Actual

Bangladesh

Value Qty % Value % Actual Change Change

Qty Actual

Vietnam

Value Qty % Value % Actual Change Change

Qty Actual

Value Qty % Actual Change

Value % Change

93.67

1864.47

3.33

1.53

36.26

719.31

-8.45

-11.13

14.63

311.38

24.02

15.17

22.73

401.55

0.90

3.34

0.86

20.36

1.81

-0.15

41.68

1441.02

2.57

-0.17

25.98

721.26

-1.33

-6.20

0.23

12.71

4.73

-9.13

4.42

146.72

31.38

18.81

1.14

65.00

18.30

39.31

96.10

2146.26

6.65

1.56

50.71

938.86

1.65

-7.02

2.01

49.19

18.44

8.05

7.75

127.73

34.68

35.89

7.72

172.70

3.34

8.20

89.89

2595.70

8.94

2.09

26.18

702.97

5.15

-5.81

18.77

577.24

12.21

3.21

12.45

265.39

20.52

13.22

4.12

86.25

7.82

5.50

132.22

3413.66

8.00

1.66

49.78

1312.19

1.27

-5.76

17.73

472.29

1.33

-2.33

15.52

233.19

36.17

32.19

3.77

82.69

17.53

15.76

36.85

800.17

-3.06

-3.22

13.86

274.77

5.87

-6.58

2.85

77.21

-22.91

-6.15

5.77

87.24

-3.17

1.47

1.22

24.33

4.47

6.73

148.73

1459.22

8.52

3.22

76.80

540.84

8.81

-1.73

1.66

20.90

33.46

27.40

15.17

0.43

0.96

5.88

135.39

52.22

4187.79

-1.15

-4.69

35.91

703.53

-12.56

-18.50

19.51

428.32

-3.37

-4.83

85.35

1274.59

5.51

2.23

8.49

215.01

-0.86

0.02

1201.88

4.68

-1.99

42.97

389.76

-0.78

-13.65

20.38

242.50

5.38

-0.59

18.21

200.11

24.92

20.76

1.91

20.05

-13.38

4.39

546.55

-3.69

-6.53

20.11

208.30

-8.74

-13.97

1.52

28.42

-3.19

-0.20

2.04

26.31

23.23

17.46

0.40

8.18

-19.22

12.75

7136.64

5.71

-2.20

166.78

2938.02

-0.17

-11.28

9.26

167.21

-2.42

-7.76

115.44

1584.16

13.08

7.92

5.18

99.03

4.63

4.97

13741.81

4.99

2741.00

-5.40

-15.13

4.93

265.89

3659.40

12.52

9.52

27.31

515.01

5.98

7.82

7134.73

3.12

-0.80

53.95

931.12

-8.94

-13.69

40.71

671.46

6.04

0.45

220.26

2412.96

5.94

0.52

5.38

119.04

3.79

12.27

1742.04

10.55

2.51

53.39

694.47

4.16

-10.35

7.18

117.99

4.03

-2.13

16.51

285.47

32.82

26.87

1.84

54.58

86.96

72.65

Foundation Garments Jackets & Blazers Ladies Blouses Ladies Dresses Ladies Skirts Legwear

1.41

0.49

Men’s Shirts 211.52 Nightwear 109.62 Suits/Ensembles 34.82 Sweaters 412.74 Trousers 863.19

0.83 226.96

32.26

544.67

7.68

T-Shirts 469.20 Undergarments 105.57


Japan Apparel Imports January

- September 2016

Japan’s inactive economy reflects in its apparel imports Japan is falling prey to its own economic policies. In the last 26 years, it has launched same number of stimulus packages while ignoring the fact that the country doesn’t need more investments, but needs more young people to drive the economy… Its consumers have gone old and hence risk-averse.

12 10

Percentage change

8 6 4

2 0

2.34% Knitted

1.94%

2.24% Woven

Total

2 4 6 8 9.89%

10 12

Quantity

India Exports

Trade Update…

Value of exports during the first nine months of the year declined (-) 12.33%, while the volumes were also down by (-) 6.02%. Knitted garments registered a decrease in volumes of exports by (-) 10.55%.

10.29%

10.71%

BangladeshExports The country saw good increase in the volume of exports to Japan in the first nine months by 36.09%, while values increased by 12.15%. Growth was mostly seen in knitted garments with 45.06% increase in volumes.

Value

Vietnam Exports In the period under review, the country registered a decrease in value of exports to the Japanese market of (-) 1.07%, while volumes were up 10.21%. Woven garments saw 2.71% growth in volumes.

ChinaExports The country continues to see a setback in exports to Japan with decline of (-) 14.84% in value of exports in the period under review. However, in terms of volume exports increased by 0.10%.

Vietnam notes decade low export growth in apparels According to the General Department of Vietnam Customs, the total export of garment and textile products was US $ 22.58 billion till December 15, 2016, marking a year-on-year growth of 4.8 per cent which is lowest in last 10 years. Equally shoe exports showed the same picture asVietnam exported US $ 12.3 billion worth of shoes during the period with a growth rate of 8.1 per cent, lower than 16.3 per cent of 2015 and 22.9 per cent of 2014. Speaking at a conference on reviewing the annual performance of the apparel sector, Vu Duc Giang, Chairman of Vietnam Textile and Garment Association (VITAS) attributed the slow growth to fluctuating material prices and comparatively lower foreign direct investment during the period. He, however, added that EU-Vietnam Free Trade Agreement, which will would become effective in 2018, is expected to prepare the importers, customers and investors for better growth infuture.


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IIGM and XCEL join hands Upbeat for more market space in the finishing segment I

ndigenous to the core with ‘Made in India’ product line of washing and finishing equipment for the last two decades, XCEL STIRO, has achieved another milestone with a strategic marketing tie-up with IIGM, one of the most respected technology providers of the Indian apparel industry. With this togetherness, both organizations are enthusiastic about penetrating deeper into the market segment in washing and finishing segment. This partnership also matters as it is the first time in the history of three decades of IIGM that it has joined hand with an Indian machinery manufacturer. The apparel industry is also set to be benefited with more effective service and wider reach of the brand under the IIGM umbrella. Apparel Online interacted with both companies on the expectations from this tie-up. Having more than 4,200 content users of its products mostly in north India, where the company is based, XCEL STIRO is now geared up for

Pavan Kapoor, MD, IIGM

ESSENTIALS XCEL has a strong R&D and manufacturing base for laundry, dry-cleaning and finishing equipment. XCEL has already enhanced production facilities and increased support staff in all the departments.

bigger market share with the help of IIGM. Deepak Chawla, Director of XCEL STIRO is very upbeat about this tie-up and claims that it will be a support to the industry, which is looking for solutions and services that are impeccable. “The trend is to de-centralize the business today and let the specialist do the needful. Needless to say, that IIGM being the undisputed leader of our industry will do more than justice in promoting our products on Pan-India basis. Moreover, IIGM is a highlyrespected company for their fair business practices, while XCEL is known for the products quality and support services. So, this venture will definitely result in great response from the customers,” he says. He further viewed that IIGM will have the sole rights for marketing, promoting and servicing of complete product range in the southern, eastern and western regions of the country, along with the joint selling in the northern region. Deepak also added that

Deepak Chawla, Director, XCEL STIRO

together they will be able to give even better service to their client which is prime focus for him as well as IIGM. IIGM is also equally excited on this strategic alliance. “XCEL has a strong R&D and manufacturing base for laundry, dry cleaning and finishing equipment. Their product enjoys a good reputation with their customer base mainly in North India. IIGM’s marketing network which is spread across Pan-India, hopes to leverage our customer base to distribute these high-quality products. This is a natural synergy between two companies who are strong, at what they do,” opines Pavan Kapoor, MD, IIGM. Gearing up for the additional business, XCEL has already enhanced production facilities and increased support staff in all the departments. Deepak is particularly humbled by the fact that IIGM, which is representing only leading international brands, has chosen XCEL an Indian company/brand for its first such tie-up. The reasons for IIGM are very clear and Pavan Kapoor is very excited on this new direction. “It is true that this is the first time that we have made a tie-up with an Indian company, but the connection is strong as the laundry business in the mid-segment is predominantly focused with local players. Also, this has been a missing link in our product offering and consequently the XCEL tie-up is a strategic one for completing our product range. We also believe that in the next few years, this segment will expand rapidly and therefore, marketing and distribution will play an important role for achieving success,” says Pavan Kapoor.


As far as IIGM’s strategy to market XCEL’s products in India is concerned, IIGM is confident that its own strong base along with XCEL’s product quality will prove a winning combination. “IIGM is a well-known brand offering technology and services to our more than 10,000 customers all over India. We aim to provide a

far better quality of services and availability for XCEL products across various segments of the market. The strong partnership of IIGM and XCEL hopes to provide exceptional customer experience of a high-quality product which is available at competitive prices across the Indian sub-continent,” concludes Pavan Kapoor.

INDIA ITME ’16

EFI REGGIANI PRESENTS TEXTILE PRINTING INNOVATIONS

E

FI Reggiani, a leading technology provider of a full range of industrial solutions for textile manufacturing, exhibited advanced and environment-friendly industrial digital inkjet textile technology with local agent Voltas Limited at the recently held India ITME 2016 in Mumbai. The company featured the EFI Reggiani ReNOIR PRO, 1.8-metre wide digital textile printer that reduces cost and improves productivity and sustainability in high-quality industrial digital printing applications on a wide range of textiles. The new AQUA reactive inks used in the printer deliver improved printing results while extending ink head life, the company said. “We have seen excellent sales of Reggiani printers in India, validation of the analogue-to-digital transformation that is happening in the textile industry there. Exhibiting at ITME gives us another opportunity to help textile-related companies fuel growth by taking advantage of the opportunities high-quality digital fabric printing offers,” said Adele Genoni, Vice President and General Manager, EFI Reggiani. The company with its partner, Voltas Limited, have sold more

than 10 EFI Reggiani printers in the country through the first three quarters of current year, adding to its growing installed base of digital textile production technologies. EFI Reggiani is the premiere manufacturer of traditional and digital printers and pre- and post-treatment solutions for fashion and home furnishing textiles, with a comprehensive portfolio spanning the company’s original rotary screen technologies to the most advanced inkjet textile printers, pre- and post-treatment machines, and inks in the industry.


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KNITTING / WEAVING YARN

EMBROIDERY FABRIC / LACES

METALLIC MULTI COLOUR FOILS

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EYES & EARS

T. Merchandising Service achieves good growth in outdoor home products

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ompleting a decade of its operations, Noida-based buying house T. Merchandising Service has observed good growth in outdoor home furnishing products for US market and is further expecting same or even more growth. The company also added new vendors with it in recent months. Founded by Kaiser Roka and Tehmina Yadav, the company is now working with more than 60 vendors from across India on regular basis while almost 120 vendors are associated with it. Both the founders have almost 3 decades of experience and working with prestigious brands of US market. “I strongly feel that Indian expertise of hand-crafted products – the kind of niche products like fashion bedding,

and cushion covers, are one of the main factor for this 15-20 per cent growth. Looking for an overall business scenario this growth is something that gives us satisfaction,” shared Tehmina.

“Consolidation of business to explore new opportunities is the best way. Market focus will remain same on the US.” –TehminaYadav

She further added that customers seem uninterested with basic or whatever products is being offered by China. And for a change Indian craft/hand-made products is a good option for them so demand for such products increased. As far as high price for these products is concerned, vendors support is a supportive factor for the company. Vendors of T. Merchandising do not have too much thrust on high margin which is common practice in such products categories. “First priority for our vendors is regular orders and relationships with buyers; so they work accordingly

and are able to survive in a good way. We always try to give them volume orders.” In last six month, the company added 6 new vendors with it from different regions of India and they are producing outdoor products in home segment. With regards to similar kinds, but machine-made products being offered by China, Tehmina is of the opinion that exact look due to heavy embellishment and focus on design development is hard to make a copy of these products for China. Talking about the future plans she added that consolidation of business to explore new opportunities is the best way. Market focus will remain same in the US. “We are expecting at least 20 to 30 per cent growth next year and this year is very crucial,” concluded Tehmina.



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