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Knitting : the most innovative segment Market Report : Cotton / Yarn/ Surat/ Apparel Index Interview : Amarjothi & Raymond Article : Strategy Management / Business of Hygiene products Technical Article: Effects of different weaves on thermal resistance properties shirting cotton fabric
Range of Yarn Products è Fancy Yarn
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è 100% Glow Fibre Yarn
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EDITORIAL Textile Economy; Stay Positive...!
We have honoured that Indian Textile Industry is in the hands of 2 dynamic Women. First one is Ex- TV Personality, Textile Minister Mrs. Smriti Irani; second one is Economic Doctorate Textile Commissioner Dr. Kavita Gupta. Both are non textile professionals, but determined to change the industry by their presence. Dr. Kavita Gupta mentioned in one of the meeting that Mrs. Smriti Irani considered TRA (Textile Research Associations) & COE (Centre of Excellence for Technical Textiles) is not up to the international standard. Running TRA is a challenge due to lack of financial support. But she stated that there was no constraint for funds to support the sector, she said of the Rs 9 crore released out of the allocated Rs 13.5 crore to BTRAâ€™s Centre of Excellence for Geotech & had utilised only Rs 3.01 crore. While South India Textile Research (SITRA) has utilised Rs 9.72 crore of the released fund of Rs 11.43 crore, Ahmedabad Textile Industry Research Association (ATIRA) has kept pending Rs 2.46 crore of the release amount of Rs 22.99 crore. Describing technical textiles as the future of the industry, she said the market size is projected to increase from Rs 75,925 crore in 2012-13 to Rs 1,58,540 crore in 2016-17, with a growth rate of 20 per cent year-on-year. Today, there are mix emotions in the industry. Any Industry developed & run by Manufacturer/Exporters, Traders/ Importer, Retailers, Association of the value chain. But our industry looks so much dark for new entrants like Students, investors, banks, credit rating agencies, and consultants. They feel insecure & de-motivated to enter, though there is no entry barrier. Textile industry will exist forever till the man kind alive in earth. There may be ups and down, but Fashion & glamour can never alter any technology products. Classic Example of ZARA Founder Mr. Amancio Ortega, has beaten Mr. Bill Gates Founder of Microsoft to become worldâ€™s richest person. We should Stay Positive and Think more productive, innovative...!! Wish you a very Happy Festival Season..!!!
Ms. Jigna Shah Editor & Publisher
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9- Madhu Jain : Craft Revivalist & Textile Conservationist 10- Stanford Scientist develop skin line fabric
September 2016 ISSUE EDITORIAL TEAM Editor & Publisher Ms. Jigna Shah Consulting Editor Mr. Avinash Mayekar Graphic Designer Mr. Anant A. Jogale
Mr. Devchand Chheda City Editor - Vyapar ( Janmabhumi Group) Mr. Manohar Samuel President, Birla Cellulose, Grasim Industries Dr. M. K. Talukdar VP, Kusumgar Corporates Mr. Shailendra Pandey VP (Head – Sales and Marketing), Indian Rayon Mr. Ajay Sharma GM RSWM (LNJ Bhilwara Group)
EDUCATION / RESEARCH
Mr. B.V. Doctor HOD knitting, SASMIRA Dr. Ela Dedhia Associate Professor, Nirmala Niketan College Dr. Mangesh D. Teli Professor, Dean ICT Dr. S.K. Chattopadhyay Principal Scientist & Head MPD Dr. Rajan Nachane Retired Scientist, CIRCOT
CONSULTANT / ASSOCIATION
Mr. Shivram Krishnan Senior Textile Advisor Mr. G. Benerjee Management & Industrial Consultant Mr. Uttam Jain Director PDEXCIL; VP of Hindustan Chamber of Commerce Mr. Shiv Kanodia Sec General, Bharat Merchant Chamber Mr. N.D. Mhatre Dy. Director, ITAMMA
COVER STORY 11- Skill Development – Need of an hour for Tirupur Knitting hub by Mr. Avinash Mayekar 12- Review of Polyester Yarn Mark by Mr. Saurabh Agarwal 14- Effects of different weaves on thermal resistance properties shirting cotton fabric by DKTE professor INTERVIEWS 17- Interview with Mr. Rajan Premchandar, MD of Amarjothi Spinning Mills Ltd. 18- Interview with Mr. Ram Bhatnagar , VP & Head of Sales & Distribution , Raymond Limited. ARTICLE 19- Strategic Management: The Art, The science & Craft of Business by Mr. Rushin Vadhani 21- Business of Hygiene products in India by Textile Consultants EVENT REPORT 24- TMMA : Export Excellence and R&D Awards 2015-2016 26- Dollar Business : Business Power Series Conclave 2016-17 29- YFA : Denim Zone and China Pavilion to be highlighted on show MARKET REPORT 27- Cotton Report 28- Surat Report 30- Yarn Report 34- CMAI Apparel Index 33- SHOW CALENDAR
Advertiser Index Back Page : Raymond Back Inside : RSWM Front Inside : Raysil Page 3 : Amarjothi Page 4: Intex 2016 Page 5 : SGS Innovation Page 7 : SKBS Page 10 : Bhatia Exports
Page 37 : Rieter Page 38 : Sanjay Plastic Page 39 : Varnita Tex Page 40: Non Woven Tech Asia Page 41 : Amith Garment & Vora Associates Page 42 : YFA
Madhu Jain: Craft Revivalist and Textile Conservationist Indian’s traditional textiles. Providing Livelihoods to Artisans
The handlooms sector, which represents the rich diversity of India’s 2,000-year-old textiles tradition, has a hands-on advocate in Craft Revivalist and Textile Conservationist Madhu Jain, designer extraordinaire, whose name is synonymous with swadeshi. Madhu is a doyen in the Indian crafts sector, evident from her many partnerships over the years with Government of India’s Ministry of Textiles. Crafts call for sustained effort. From the time she launched her label in 1987, Madhu has worked only with natural fibres that are quintessentially Indian in ethos and execution. This gravitation towards traditional, organic textiles is a reflection of her personal sensibility, and she has carved a niche for herself as the country’s most respected craft and textile revivalist, whose fine creations and revival of rare and extinct motifs and textiles are embedded in strong Indian roots. Updating Indian Textiles Madhu has experimented extensively with textiles and continues to innovate to craft unique blends that are characteristically true to her “made-in-India” natural fibres label. After travelling extensively through rural India to meet master craftsmen and weavers, Madhu’s research led her to develop textiles in distinctive combinations of two different weaving traditions from two states to create new textiles, high on quality and design. This seamless blending is Madhu’s speciality, making her a forerunner in the indigenous traditional weaves industry. Madhu has experimented with Odisha’s Ikkat weave, Andhra Pradesh’s Kalamkari craft, Assamese Mekhla Chaddar, and Andhra Uppada. In keeping with her passion for eco-friendly textiles, she was instrumental in introducing bamboo fibre as an alternative textile in India. Additionally, she has collaborated with several NGOs in India and Bangladesh that work with rural artisans and local weavers. Her innovations have resulted in a resurgence of interest in
Increasingly, factory-produced textiles are inundating the market and fast overtaking the natural fibres sector, forcing artisan communities into outmigration in search of other work options. Pained to see the denudation of India’s traditional crafts markets, Madhu felt an urgent need to ensure these traditions would not languish and slowly die out. Madhu realised that for the traditional natural textiles industry to survive and retain its supremacy in urban markets, the key was to contemporise textiles while at the same time, being true to tradition. This meant relying on the dextrous skills of India’s master weavers and craftsmen whose craft has been handed down to them generationally. In doing so, she sources artisans who were once famous for their crafts and who still practice them. Madhu’s work has given a much-needed boost to this industry, providing employment to over 500 master weavers and craftsmen across India. After Madhu used bamboo textile as a base for the Kalamkari “Tree of Knowledge” for the 2010 Commonwealth Games Opening Ceremony, the Kalamkari sector has witnessed a 500% growth. Her exceptional contribution to the crafts of Andhra Pradesh is “figurative” Kalamkari, accomplished by incorporating innovative features to the traditional craft by using influences such as Raja Ravi Verma’s paintings. Madhu’s twist in design sensibility has given a new lease of life to this craft form. Popularising Craft by using Fashion as a Platform To preserve India’s endangered crafts heritage, the obvious solution is to ensure markets. Madhu has succeeded in increasing awareness around handcrafted textiles and craft-based clothes. To reach out to a larger, national and international audience, she uses the platform of fashion to showcase India’s heritage, and to assure urban markets for rural weavers. Next Steps Having worked with various government and NGOs in development, design, and marketing of indigenous textiles and crafts, Madhu aims to set up a chain of support to ensure steady volumes of work to India’s artisans, independent of season or the vagaries of fashion.
Highly regarded as a handlooms specialist whose life quest is revitalising and reinvigorating dying crafts, Madhu has impacted the sector by giving it a fresh lease of life. Patrons Government of India; J&K Government; Ministry of Textiles; Sonal Mansingh; Nita Ambani; Rani Mukerji; Vandana Luthra; Maneka Gandhi; Waheeda Rehman; Raveena Tandon; Juhi Chawla; Milind Soman; Neelam Pratap Rudy; Princess Maha Al Sauduri of Saudi Arabia; Mariam Fayesalle, First Lady of Senegal. Major Contributions to the Handlooms Sector, Including Awards and Memberships § 1987: Launched Madhu Jain label to revive the handlooms sector. § 1987: Created a collection blending Baluchari of West Bengal with Kalakshetra motifs of Tamil Nadu. § 1996: Revived folk art Nakshi Kantha in collaboration with BRAC (Bangladesh), one of the largest NGOs in the world. § 1996: Reintroduced the legendary Dhaka Muslin, which had disappeared from India after partition. § 1997: At Miss World Pageant showcased Nakshi Kantha and Dhaka Muslin craft, winning international acclaim. § 2000: Associate Designer Member, Fashion Design Council of India. § 2003: Launched “Projekt M” with Milind Soman to catapult Indian textiles onto the world map. § 2003: In tandem with Indian Textiles Ministry, Madhu introduced bamboo as an alternative, eco-friendly textile. § 2003: Showcased a Kalamkari collection at Singapore Fashion Week. § Feb 2004: At 7th World Bamboo Congress New Delhi, formally introduced bamboo-based textiles into India. § 2005: Embarked on “Kashmir Project” with J&K government to restore employment lifelines to local artisans by sourcing, developing, marketing and popularising Kashmiri handicrafts in India and abroad through museums. Dr Karan Singh’s personal collection in Amar Mahal museum provided critical reference points. For the “Kashmir Project” Madhu mixed traditional and contemporary design in Kashmiri handicrafts, presenting this to leading museums in New York—Metropolitan Museum, Museum of Arts and Design, American Museum of Natural History, Rubin Museum of Art. § 2005: Published “The Living Art and
NEWS Craft Tradition of Jammu and Kashmir”, a book that charts the history of Kashmiri crafts and details its myriad crafts. § 2007 Member, Culture Committee, South Asia Foundation, which promotes better understanding between SAARC nations through crafts and culture. § 2008: Entrepreneured a special showing of Great Living Traditions of Indian Weaves and Exquisite Craftsmanship with especial focus on the sari. § May 2008: Invited by J&K government to present a paper on “A Journey into the Living Arts and Crafts of J&K”, at South Asia Foundation Summit, Srinagar. § Jan 2009: Official Style and Design partner, Miss India Worldwide 2009, to promote the traditional sari.
§ 2009: Nominated for “Marie Claire Fashion Award” for contribution to Indian crafts § April 2009: Awarded “25 Women of Excellence” FICCI FLO award in recognition of excellence in field of creative arts. § 2010: Designed a carpet for People for Animals fundraiser. § Oct 2010: In recognition of her excellence in revitalising the crafts sector, for the Opening Ceremony of the Commonwealth Games 2010, was given the rare honour of crafting an installation in the “Fabric of India” segment. Using the skills of 300 weavers, 500 craftsmen and 200 hand embroidery artisans, Madhu designed and executed a giant 115-feet eco-friendly craft installation using bamboo fibre and Kalamkari
craft technique. § 2011: Restored a rare khadi sari woven in prison in 1941 by Pandit Jawaharlal Nehru. § October 2012: In collaboration with Jehangir Art Gallery (Mumbai) and Ensemble boutique, Madhu curated a retrospective of 25 years of her contribution to reviving crafts. § 2013: Curated a restrospective of museum-quality textiles and craft at Ogaan, New Delhi. § 2015: Curated an exhibition, Rare Textiles of Gujarat, in New Delhi, which was inaugurated by Smt. Menaka Gandhi, Union Cabinet Minister for Women & Child Development.
Stanford Scientists Develop Skin Line Fabric By: Seshadri Ramkumar, Texas Tech University, USA
A team of multidisciplinary researchers at Stanford University has developed skinlike fabric material that cools the body more efficiently. In today’s Science journal, the researchers from Stanford report that they used nanoporous polyethylene to develop a textile material which aides radiative cooling while maintaining breathability, wicking and necessary mechanical strength. According to the report in Science, the researchers have also devised an instrument to simulate skin temperature. The use of nanoporous polyethylene fabric resulted in the lowering of skin temperature by about
2.7 degree centigrade when compared with another commonly used next-to-skin fabric. According to Yi Cui, an associate professor of materials science at Stanford and the lead author of the study, the fabric effectively cools the person, which makes cooling the building unnecessary thereby saving energy. Nanoporous plastic textile transports the body heat as infrared rays due to the nanostructured polyethylene. Researchers modified the polyethylene material that is commonly used in battery development which enables it to be opaque to visible light but transparent to infrared rays so that
the heat can be dissipated. According to Professor Shanhui Fan, professor of electrical engineering at Stanford, who co-authored the study, this research can lead to the development of new materials that can trap or let go infrared radiations. The research is multidisciplinary one involving photonics, nanotechnology and chemistry. Indeed, it shows that new developments in advanced textiles can come from schools that are nontraditional textile strongholds, reflecting the nature of the next phase of textile research and development.
Mr. Rajesh Bhatia
Manufacturer of all types of yarn dyed woven fabrics in 100% Coton & PV Rayon, Melange & specialised of dobby & Fancy yarns. Address : 389, Trichy Main road, Gugai, Salem : 6, Tamilnadu, India. Landline : +91-427-2465479 / +91-427-2465489 Advt.
Mobile No : +91-98946-46789 Email : firstname.lastname@example.org
COVER STORY Skill Development – Need of an hour for Tirupur Knitting Hub’ Shri Avinash Mayekar
MD, Suvin Advisor Pvt. Ltd. Introduction
an extra avenue to boost our Indian economy.
Indian knitwear segment is witnessing tremendous growth. India has more than 65% young population below the age of 35 & most of the young population prefers to wear casual wear like tshirts & track pants on day to day basis. In fact senior citizens seem to be inclined more towards western casual wear for morning walk, reason being the comfort & flexibility offered by knitted garments compared to woven ones. Already there is huge demand for knitted garments in export market. So, knitted garments forms major chunk in domestic as well as export market. Tirupur,is one the major garment clusters in India providing direct & indirect employment to more than 3 lakhs people. Out of India’s total cotton knitwear exports earning 50%comes from Tirupur itself. The demands for knitted garments from domestic & international markets will be growing multi folds in coming future. So, in order to meet these ever growing demands, Tirupur industry has to be revived. The major hurdle in growth of Tirupur cluster is lack of availability of technically qualified managerial level manpower like professional knitting master, merchandisers and marketing personnel for selling in the international market/designers etc.
Skills gap analysis: In order to achieve higher control on their target market, global competition andcustomised niche markets; the managers in Tirupur Knitwear units need to motivate people, create new direction, generate new opportunities. They have to combine creativity, imagination, intellect and sensitivity towards needs of new breed of employees. The strengths of these people can be fully utilized only through their involvement and co-operation which need effective training and development techniques. The Knitwear unit managers need to remain self-motivated. Increased responsibility, fair recognition, due appreciation and rewards for beyond normal efforts are great motivators. Current managers are under greater scrutiny. Their model behaviour can create the spirit of excellence. They have to set personal examples for others to follow. Effective communication is the key to effectiveness of actions. It helps to obtain better support and willing involvement of team members. It is also vital in order to ensure proper appreciation of actions and constraints by the top management; thereby garnering support. Managing people is an art and lending a sincere hearing solves even the most difficult of problems. The managers are responsible both for discovering and defining their role as well as discharging the same. The bottom line thus is that the onus of fine tuning between the old and new management philosophies lies on the managers of today by which they can enhance productivity and motivation. The managerial skill gap analysis would provide solutions to overcome the prevailing skill gap, so it is important to study the possibilities of how the prevailing skills gap could be effectively narrowed. The detailed study will help in identification of various modes of training that could be adopted.This would lead to empowering the organizations with a strong skilled workforce, enabling them to improve on their productivity. This in turn would enable the knitwear exports to take up a better share in the global market, thus lending
The basic skills for managing a small team can be viewed in three categories i.e. organization, leadership, and communication. Of these three, leadership is the hardest skill to acquire. Without detracting from the main work, managers should stimulate their teams with changes of focus. This includes drives for specific quality improvements, mission statements, team-building activities, and delegated authority, though decisions must be made on how often to raise excitement about new issues. One of the most cited characteristics of successful managers is vision. For managers, vision is a vivid idea of what the future should be. The best managers are those who recognize problems, seize opportunities, and create their own future. Many organizations across the countries have recognized that training is a strategic priority rather than a tactical response, which may be used as a catalyst for change and also as an aid to give an organization a competitive edge. Both the availability of required quality and quantity of Human Resource (HR), maintenance of such employment through training, as well as the HR’s strategic responses to the worldwide changes ultimately determine the competitive strength of afirm within a nation or across the countries. Hence organizations in today’s world need to follow the principle “innovation-training-development-action-sustainable growth” with true concern for the meaningful development. Suggestions • Communication skill: There is significant gap in the managerial communication skills inTirupur knitwear industry. Hence it is needed to improve the communication skills of the manger to improve their performance. • Greater Management Support and Commitment: In today’s competitive environment, the management of the knitwear companies should give serious attention and effort towards training the managers in the organization. The top management has to be committed to talent development and they must take a long term approach. • Improved Budgets for Training and Development: Without sufficient resources any effort to improve managerial talent will be stifled. Thus return on investment and cost benefit analysis should be done to clearly demonstrate that the payback on such initiatives will be quick and significant. • Allocate Better Time Necessary to Train and Develop Managers:Knitwear organizations are exceptionally busy places and the urgent issue can push put theimportant issue. Any organization wanting to develop the top management should be willing to allocate time in addition to financial resources. Managerial skill development takes time on the job and off the job. This has to be budgeted and allocated properly. • Assess Individual Management Competency: While organizational needs assessment are important for identifying specific skill sets individual needs assessments are important for determining the competencies of individual managers.Formal assess-
COVER STORY •
ments, 360 degree Feedback tools and self-assessment are just a few tools that can be used to determine the managerial talents necessary to succeed. Each Knitwear Company Should Have Clear Management Skill Sets Defined
Every organization has its own skill sets that they deem most important for success. Effective needs assessment can be used to identify these skill sets that can become the basis for establishing clearly defined learning objectives and processes to acquire these specific skills. Government Initiatives: Government approved aRs 6,000 crore special package for textiles & apparel sector to create one crore new jobs in 3 years, attracting investments of $11 billion and generating $30 billion in exports. The measures approved include additional incentives for duty drawback scheme for garments, flexibility in labour laws to increase productivity as well as tax and production incentives for job creation in garment manufacturing. The package breaks new ground in moving from input to outcome based incentives by increasing subsidy under Amended-TUFS from 15% to 25% for the gar-
ment sector as a boost to employment generation. The Government of India also launched the National Skill Certification & Monetary Reward Scheme to encourage skill development for youth by providing monetary rewards for successful completion of approved training programs. The scheme will benefit 10 lakh youth at an approximate total cost of ₹ 1,000 Crores with an average monetary reward of ₹ 10,000 About us With the continuous efforts to serve Textile Industry, Suvin has smartly identified the need of textile industry for skilled manpower to cater to the global markets & ventured into Suvin HR Solutions LLP. We will be offering services like development of HR processes, people development & leadership development. Our unique programs will benefit organisations as well as individuals to grow. Our expert team brings more than 25 years of industry experience in conducting training programs. They will develop human resource to meet business challenges with effective soft skill development programs. We are all set to fulfill the demands of Indian Textile Industry for good human resource & training programs
Review on Polyester Yarn Mark Shri Saurabh Agarwal Voice: 91-22-22829696 / 22829797 Mobile: +919892337579 email: email@example.com Web: www.thetalentmart.com History Of Polyester The History of POLYESTER” is quite interesting, which I thought needs to be pointed out before reviewing the Industry as a whole. Polyester, as a specific material, most commonly refers to a type called PET (polyethylene terephthalate) Polyesters include naturally occurring chemicals, such as in the cutin of plant cuticles, as well as synthetics through step-growth polymerization such as polybutyrate. Natural polyesters and a few synthetic ones are biodegradable, but most synthetic polyesters are not. Polyester is used very widely in clothing. Depending on the chemical structure, polyester can be a Thermoplastic or Thermoset. There are also polyester resins cured by hardeners. However, the most common polyesters are Thermoplastics. Polyester yarn is not a very old yarn as compared to conventional yarn like Cotton or woollen Yarn, which are much older yarns available in the market. Polyester cloth was invented by British scientists John Whinfield and James Dickson in 1941 in England. In 1945, afterWorld War II was over, the United States Company DuPont bought the right to make polyester and by 1950, a factory in Delaware was beginning to manufacture it. In 1960, in India, it was Mr. DhirubhaiAmbani and his co-brotherMr. ChampaklalDamani, who started Reliance Commercial Corporation. In 1965, the partnership ended and Dhirubhai continued the polyester business of the firm. In 1966, Reliance Textiles Industries Pvt Ltd was incorporated in Maharashtra. It established a synthetic fabrics mill in the same year at Naroda in Gujarat in 1975. Since then, the core business of Reliance Industries till today, is manufacturing
of different kinds of polyester yarn. This is documented in a very interesting book called ‘The Polyester Prince’ by Hamish McDonald, which was published in 2011, but the book was banned in India. The book takes a balanced look at India’s own robber baron. Mr. McDonald pays tribute to Gujarati traders/ Banias in the first few chapters, by acknowledging their exuberance of speech, inventiveness, and commercial drive. Dhirubhai first displayed his diplomatic and negotiating skills during the Junagadh freedom struggle. At Yemen, he exploited the fact that silver content in the Rial, was higher than in the pound. Source:https://indianvanguard.wordpress.com/2011/08/12/polyester-prince-the-real-story-of-dhirubhai-ambanibanned-in-india/ Review Of Polyester Yarn The Analysis of Fibres, Yarns & Threads, is an essential activity for the whole fibre and yarn industry, as these are important components of the textile industry. As per the fibre report, the trends favour man made fibres, yarns and threads. They have grown considerably in the recent years which has resulted in significant increase in their production and consumption. However, this rise is due to increased consumption in China which sustains global demand. But demands in fibre industry of other developed countries have decreased due to restructuring of their textile industry.
COVER STORY The output of manmade fibre had increased in Asia by 11.9%. The consumption of wool and cotton has also increased here by 2.5%. A decline was seen in Europe and Americas at nearly 4.5% each. The growth in today’s booming markets is predicted to be restricted by energy and raw material shortages. In India, the oldest textile market is in Surat, Gujrat. In Surat there are thousands of yarn manufacturing units, which manufacture different kinds of yarn, ranging from cotton yarn to polyester yarn and many more. The textile industry in Surat is mainly engaged in the activities of yarn production, weaving, processing, as well as embroidery. Surat is well known for its synthetic products market. It is mainly engaged in the production and trading of synthetic textile products. Nearly 30 million metres of raw fabric and 25 million metres of processed fabric are produced in Surat daily. The city has several textile markets that exist since times immemorial. There are many other places where the textile Industry has flourished well; places in Rajasthan, Punjab, and Karnataka like Banswara, Bhilwara, and Belgaum etc. The Surat textile industry has grown considerably over time. As per recent figures, textile production in Surat has grown by 10% in the last 5 years, while the market for embroidery has grown from an almost negligible amount to around Rs. 30000 million over the same period. Though there is high supply of Polyester, the demand in domestic market is not as much, due to tropical climate in India. In recent years, the exports have fallen, the Chinese manufacturers have also emerged as competitors to Indian manufacturers, as they are producing the same quality at lesser price. According to correspondence in May 2015 in the Business Standard, the polyester yarn Industry was expected to perform
better as compared to the last few years. After tough competition from cotton last year, the manmade yarn and fabric industry is expected to grow at a higher rate of five to seven per cent in 2015-16 due to stable crude oil prices. However, it is the domestic market that will see the larger growth, as Indian synthetic yarn and fabric performance, has not been one of the best internationally. So, while companies in this segment are not expecting much from exports, the domestic market might bring back some sheen, they say. “While normal growth of five to seven per cent is anticipated, if the economy does well, this could go up to double-digit growth,” said O P Lohia, chairman, Indo Rama Synthetics (India) Ltd.
Conclusion The Indian manmade fibre industry consists of two main sets of players: The 1st, are erstwhile textile players, and the 2nd have a presence only in manmade fibres (that is, non-diversified players). Further, there are some companies that have been established by equity contribution from the technology licensors. The Indian petrochemical companies have a presence, mainly in the fibre intermediates segment of the fibre value chain (excluding Reliance Industries Limited, or RIL, which can be considered as a former textile player). After understanding the polyester yarn industry in India for polyester yarn, the domestic market has become very tough for the manufacture’s to survive, hence most of the small manufacturers in Surat, especially do not just focus only on polyester yarn but other different yarn and fibres too for their survival !!
Spinning Sector brief Textile Industry, especially spinning sector is predominantly affected immediately by variation in supply and demand of raw material and its prices. It is known reason to all of us that more than 60 % of input cost is raw material cost. Even though this year India is largest cotton producer, availability of raw materials and their pricing are crucial concerns for spinners. Spinning industry is further affected by ever increasing costs of energy, availability of skilled labour and trained manpower to run plants effectively and efficiently. Therefore, making decision has also become very complex especially with varied challenges posed by ever changing external environment. Textile sector of India encountered tough times from 2008, after having good business over two/three years. Effect of changing global scenario is having direct impact on small decisions also, which was not the case earlier. Every change, be it exist of England from Euro zone or implementation of GST or natural/manmade calamity anywhere in the world has become an important factor to be considered before making business decision or taking call for any additional investments. Every businessman aims for profits and growth. Naturally businessman’s drive leads to either value additions for efficient use of available resources, investment into newer technology, expansion of capacities, developing new products, finding new usages of products inorder to reach new or different set of customers and
explore new market, or alternatively finding better options for cost optimisation by way of energy saving, using different raw material, finding cheaper solutions etc. In the present scenario, the job of management or professional managers has become more challenging; it is not only managing daily affairs of business and people but to always look for finding even better ways – be it expansion, diversification, integration, entering new segments etc. Their role in business calls for taking prompt but right decisions and simultaneously be prepared for uncertain future. In the view of all the above illustrations, to survive and add value to business, one needs to : • Have prompt and informed decisions • Have a gist of timely market situation and demands • Have correct information –ideal market networking and developing sources • Invest into value addition • Invest into solutions offering direct energy saving • Invest in solutions for optimised use of available resources • Invest into right technology and work closely with technology provider as partner in order to see benefits such as :where direct energy saving is possible or comparatively less skilled or even new untrained operator can handle work.
EFFECT OF DIFFERENT WEAVES ON THERMAL RESISTANCE PROPERTIES SHRTING COTTON FABRIC R. G. Shrivas and L.G. Patil
Department of Textiles D.K.T.E. Societyâ€™s Textile and Engineering Institute, Email*:firstname.lastname@example.org
Abstract This paper represents the new research on various comfort aspects of woven cotton fabric. This paper aims to investigate the relationship between different fabric weave structure (weaves) and its comfort properties. In this connection seven different basic weaves as well as derivatives of basic weave structure were studied. Comfort properties of fabric in terms of air permeability and thermal resistance were determined. It was found that the fabric with plain weave structure showed the highest thermal resistance making it suitable for cold climatic conditions. The crepe and 2/2 matt weave depicted the lowest thermal resistance which makes it appropriate for hot climatic conditions. Keywords: Fabric Structure, comfort, weaves, thermal resistance, air permeability, etc. Introduction Clothing is an integral part of human life. The primary role of clothing is to form a layer/s of barriers that protects the body against unsuitable physical environments. This protection of body fulfill number of functions like maintaining the right thermal environment to the body, which is essential for its survival and preventing the body from being injured by abrasion, radiation, wind, electricity, chemical and microbiological substances. These traditionally classified functions of clothing clearly indicate that it plays a very important role at the interface between human body and its surrounding environment in determining the subjective perception of comfort status of wearer. Clothing has a number of functions like adornment, status, modesty & protection. To be competitive, modern clothing besides having good mechanical and technological properties and being of easy care, must possess good comfort characteristics. Comfort has totally replaced the durability as far as the selection of garment is concerned . 1. Factors Influencing Comfort Properties of Textiles The comfort is considered as a fundamental property when a textile product is valued. The comfort characteristics of fabrics mainly depend on the structure, type of row material used, weight, moisture absorption, heat transmission and skin perception. The clothing system which is suitable for one climate may not be suitable for another climate. For example, good thermal insulation properties are needed for clothing which is to be worn in cold climates. The thermal insulation of textiles depends on number of factors namely thickness, number of layers, drape, fiber density, flexibility of layers and adequacy of closures . The main factors which are affect to the comfort properties of textiles are: Fabric Structure Yarn structure
Fiber From the comfort point of view, the suitable fabric must be developed by textile technologist through the proper selection of fiber content, yarn and fabric construction techniques and finishing treatments. The fabric properties depend on fiber properties, yarn structure, fabric structure and the mechanical and chemical finishing given to fabric. 1.2 Thermal comfort Thermal comfort of a clothing system is associated with the thermal balance of the body and its thermoregulatory responses to the dynamic interactions with the clothing and the environment. It is necessary to design fabrics with necessary thermal properties for a specific end use. In actual wearing condition, the transmission of moisture and heat through the clothing system take place in steady state, but is continuously exposed to transients in physical activity and environmental conditions . Need of thermal comfort Human body tries to maintain a constant core temperature that is 37.4â‚šC. The actual value of this temperature may vary slightly from person to person but it is always in a narrow range. The comfortable surrounding environment temperature for human body in India is 21â‚šC. When temperature is more or less than this, body feels discomfort as a result human body needs some external agency to maintain this temperature and clothing is one of the most common devices to provide comfort in this regard. The body must be kept in thermal balance in order to maintain the required comfort level; the metabolic heat generated together with the heat received from external sources must be matched by the loss from the body of an equivalent amount of heat. If the heat gain and the heat loss are not in balance then the body temperature will either rise or fall, leading to a serious threat to life . Factor Affecting the Thermal Performance of Fabrics There are several factors which affects the thermal properties of fabric among which thermal insulation plays vital role in preventing heat loss from body. A. Gericke and J. van der Pol  stated that thermal comfort is influenced by textile fabric properties such as thermal resistance. Research carried out by H. N. Yoon and A. Buckley  with series of polyester, cotton, and polyester/cotton blend fabrics concluded that both the fabric construction and the constituent fiber properties affect thermal transport. Further they stated that thermal insulation, air permeability, and water vapor transmission rate are dependent mainly on the fabric geometrical parameters like thickness and porosity etc. S. Gunesoglu et al  found that the thermal protective performance increases with the entrapped air inside the fabric in both convective and radiant exposures. Frydrych I. et al  studied thermal insulation properties
COVER STORY of fabrics made of natural and manmade cellulose fibers and they found that the type of raw material and fabric structure influences the properties of the finished goods. They also stated that, there are many possibilities to create fabric with properties which influence their comfort and comfort properties of woven fabrics can be achieved not only by the choice of thickness or the fabric cover factor, but also by applying appropriate weaves, appropriate finishing processes and raw materials. Fabric properties like cover factor and thickness also have an impact on the thermal comfort of the fabric. Bilska et al.  studied the effect of weave design on thermal comfort properties of the fabric and found that plain fabrics have the highest value of thermal resistance following their compact structure. The compactness of the structure of plain weave reduces the porosity of the fabric, which results in lower thermal conductivity; canvas weave has a better thermal conductivity due to a comparatively open structure; and twill weave has the lowest value of thermal resistance and the highest value of thermal conductivity due to its open structure which has large floats of yarns, which is the cause behind the higher porosity of the fabric.
2. Material and Method 2/80 Ne cotton yarn was used both in warp and weft for manufacturing of fabric. Before manufacturing of fabric all yarn tested for tensile properties, evenness, hairiness and twist level. Seven different basic weaves as well as derivatives of basic weave structure viz. Plain, 2/2 matt, warp rib, 3/1 Twill, Herringbone twill, 8 end satin and crepe were manufactured on rapier weaving machine. The design of different fabric weaves shown in Table2.1. Finishing was followed after fabric manufacturing, with normal process sequence as followed in the shirting industry. Finished fabric specimens were evaluated for fabric thickness, areal density, air permeability and thermal resistance under standard atmospheric condition. Table: 2.1 Fabric Structure/ weave
Result and Discussion yarn properties Table 3.1 result for the yarn properties Yarn characteristics
Tensile Strength (gf)
Twist Per Inch Fabric Properties Table 3.2 Fabric Properties
C o m b i n a - Airpermiability Thermal Resistance tion (Cm2/cm2. Value sec)
COVER STORY 3.1 Effect of weaves on air permeability The air permeability of a fabric is closely related to the construction characteristics of the yarns and fabrics in which large volumes are occupied by air. The air permeability of a fabric is a measure of how well it allows the passage of air through it and is defined as the volume of air passed in one second through 100 sq.mm of the fabric at a pressure difference of 10 mm of water . Air permeability of fabric was tested according to [ASTM D737].
The results depicted that the 1/1 plain weave has the highest thermal resistance. This is because of the fact that 1/1 plain weave has the maximum yarn interlacing points between warp and weft. High thermal resistance of this weave makes it suitable for cold climatic conditions. On the contrary, crepe and 2/2 matt weave showed the lowest thermal resistance because of its relatively less number of yarn interlacing points between warp and weft. Minimal thermal resistance of crepe and 2/2 matt weave makes it appropriate for hot climatic conditions . Conclusion
Figure 3.1 Effect of weave on Air permeability of fabrics
As shown in figure 3.1 there is a significant effect of weaves on air permeability of fabrics. The crepe weave exhibits higher air permeability values were as plain weave exhibits lower air permeability value as compare to other weaves. The difference observed between the air permeability values of weaves were due to difference in their characteristic covering properties. For equivalent weaving parameters, crepe weave result in a looser structure as compare to other structures, other weaves which has more firm structure than crepe weave. At the other plain weave fabric has shortest float length, hence it possesses tighter fabric structure is tight. Therefore crepe fabrics show high permeability than other weaves. 3.2 Effect of Weaves on Thermal Resistance Thermal Resistance of fabric was tested according to ASTM D1518. The results are represented graphically and discussed below. The result shows that, a different kind of weaves has influence on thermal properties of fabrics. Thermal resistance of a fabric refers to its ability to resist the heat flow through it. Lower the thermal resistance; the better will be the comfort for hot climatic conditions. The individual value plot for air permeability and weave structure is shown in fig.3.2.
The research results proved that weave structure has a statistically significant effect on the air permeability and thermal resistance of the fabric. The observed parameters contributed to the thermo-physiological comfort of the fabrics. Each weave structure has a specific pattern of yarn interlacing points between the warp and the weft. It can be concluded from the experimental results that the higher the yarn interlacing points, the lower will be the air permeability which means higher thermal resistance. The experiments illustrated that 1/1 plain weave has the highest thermal resistance among the selected weaves and hence suitable for cold climatic conditions. On the other contrary, crepe and 2/2 matt weaves demonstrated lower thermal resistance which makes it suitable for hot climatic conditions. REFERENCES N. Gokarneshan Fabric Structure and Design, New Age International (p) Limited, Publishers, 2004. pp. 7-39. A. Mukhopadhyay, I. C. Sharma and M. Sharma. Evaluation of comfort properties of polyester-viscose suiting fabrics. Indian Journal of Fiber & Textile Research, 27, March 2002, pp. 72-76. S. B. Mhetre & N. Sarada, Effect of different weaves and picks densities on thermal properties of fabric. Journal of Textile Association, March-April 2014 pp.342-335. A. Gericke & J. van der Pol, A Comparative Study of Regenerated Bamboo, Cotton and Viscose Rayon Fabrics. Part 1: Selected Comfort Properties Journal of Family Ecology and Consumer Science, 38, 2010, pp.63-73. H. N. Yoon and A. Buckley, Improved comfort polyester part 2: mechanical and surface properties. Textile Research Journal, 54, June 1984, pp. 357-365. S. Gunesoglu, B. Meric, and C. Gunesoglu, Thermal Contact Properties of 2-Yarn Fleece Knitted Fabrics, Fibers & Textiles in Eastern Europe, 13, 2(50), April/ June 2005, pp.46-50. I. Frydrych, G. Dziworsha and J. Bilsha, Fibbers & Textiles in Eastern Europe, October/ December 2002. Frydrych, I., Dziworska, G. and Bilska, J. Comparative analysis of the thermal insulation properties of fabrics made of natural and man-made cellulose fibers. Fibers and Textiles in Eastern Europe, 39(4), 2002, pp. 40-44. B. P. Saville, Physical Testing of Textile, Wood Head Publishing in Textiles, Cambridge, England, T209, 2000.pp 195. S. Ahmad, F. Ahmad, A. Afzal, A. Rasheed, M. Mohsin and N. Ahmad, Effect of weave structure on thermo-physiological properties of cotton fabrics, Autex Research Journal, 15, (1), March 2015, pp.30-34. http://www.slideshare.net/kotharivr/comfort-properties-of-fabrics-5262746.
Figure 3.2 Effect of weaves and material on the thermal resistance
Melange yarns & Vibrant Colours, the Code of Amarjothi
Mr. Rajan Premchander,
MD, Amarjothi Spinning Mills Ltd.
In Conversation with Mr. Rajan Premchander, MD, Amarjothi Spinning Mills Ltd., TVC felt that they are talking to any fashion colour specialist not Spinning Industrialist. Though Yarn segment is not very interesting as compare to Fashion in Textile Value Chain. But Making Yarn segment interesting it’s an Art and Science we can learn from Mr. Rajan Premchander. Amarjothi Spinning known for their wide range of colour mélange yarns for the readymade garment industry in India, Cambodia, Sri Lanka and Vietnam. Amarjothi Spinning Mills Ltd. is continuously growing through technological advancement to become one of the leading producers of colour mélange, fancy yarns and dyed yarns in the Asian continent. A very productive brand with a global mindset, Amarjothi has always thrived on being different from other spinning mills in the Coimbatore-Tirupur belt with focus on product development and differentiation. In its journey to be different, various technological advancements and learning supported Amarjothi’s quest for excellence, one such being its association with an Italian MNC for imparting certain technology on quality enhancement for two years in lieu of picking up 50 per cent of their production, as increasing labour cost in Italy was detrimental to competitive production in the country. “They gave us technical support to improve quality of yarn. So this was a huge difference with a little change. We learned a lot as they imparted to us better training on quality,” informs Prem. With constant upgradation, team effort and commitment to quality, the company has successfully ventured into different arenas by gaining sound knowledge in each one of them. Amarjothi is very strong as in yarn as their core product is high on demand and they have a well-equipped sample unit which produces 150¬-200 shades per day… They develop peculiar and unique shades that are not available in the market and they try to complicate it so that it cannot be duplicated. They create colours so, their caption for this year says COLOUR CREATORS. Although the company boasts of multiple businesses globally, such as fabrics, real estate, software, animation, food products, hospitals, etc., the company’s core business is still textile, which was started in 1991 with Amarjothi being one of the few companies in India to venture into trading of mélange. The production unit followed later and now the company specializes in colour mélange, which surely sets it apart from competition. The last 3 years have been challenging for the company as the market has been tough and the competition continuously increasing. “But we are very strong as our core product is high on demand and we have a wellequipped sample unit which produces 150¬-200 shades per day. We develop peculiar and unique shades that are not available in the market and we try to complicate it so that it cannot be duplicated…, this is the USP. If anyone picks up a colour from us, they find
it difficult to get the same colour in the market,” claims Prem. He adds jokingly that sometimes it is even difficult for them to recreate the sample! Fighting to stay ahead of competition, the company has in the last three years ventured into fancy yarns in answer to the market demand as people are no longer looking at basics. The company offers internationally comparable shade cards with different textures, blends, colours and different effects, mainly catering to the knitting industry and pushing further into the woven segment. “We have spent huge money on the shade cards and have received very positive feedback from customers. Our current spindleage capacity is in majorly colour mélange. We have dyeing, washing, etc. all in-house, but we also outsource some processing due to over demand. We utilize wind energy, have an ETP plant, a lab, fibre dyeing and fibre mixing plant and we are very eco¬-friendly,” informs Prem. The company is into inspirational developments with its list of fancy yarns including grindle, 100 per cent glow fibres, viscose, polyester fibre yarn, mélange injections, magic grindle injections, solid dual injection, to name a few high--end offerings. The company offers internationally comparable shade cards with different textures, blends, colours and different effects, mainly catering to the knitting industry. Constant innovation is possible through the company’s product development team that consists of around 25 people, whose core job is to work on new developments, coupled with the company’s QC department. “Whatever we introduce needs to be commercially viable. Producing takes a lot of time, and also the marketing. We have a 4-point standard that we maintain throughout the production chain. Even in our fabric division, once the yarn is knitted the fabric comes for inspection, and then goes for colour and washing and then again we get it for QC. We have a stringent quality system in place and we follow all norms. If Amarjothi is getting into fabrics, it has to be glamorous, away from the usual runoff the mill fabrics in the market. Through my fancy yarn I am giving a fancier product,” maintains Prem. Such is its quality standards that the company is nominated by brands such as Next, M&S, Tesco, Levi’s, Nike, Original Marines and many more highly recognized brands. The last 2¬3 years have seen the company going in for total modernization rather than expansion, replacing its older machines with new technology, which is also helping the company in times of shortage of labour. Growing modernisation demands for its workforce to be trained accordingly, which the company is already doing through animation at its training centre by making smaller modules and promoting interactive learning. “I have been conducting training through animation for different industries. At the KSRTC, I am training 14 lakh people through animation that is Governmentapproved. So why shouldn’t I train my people through animation,” reveals Prem, as the group also has a very successful venture in the
INTERVIEW animation industry. Nonetheless, like others, the company faces its share of challenges such as the quality of products, right pricing and also its timely delivery. But the company through its service team ensures a smoother transition for its customers, whether through its online¬ check of order status or by being responsive to its customers’ needs. Also, facilitating further is the growing demand for experimentation of fibre that keeps on evolving with various segments such as ladies, innerwear, children, babies, men, etc. By making its
mark in the market for its quality, innovation and service, Amarjothi has made its niche in the market and is being recognized for its product offerings which are unlike any other in the market. Sending 30 per cent of its produce for exports to markets such as Cambodia, Ethiopia, Sri Lanka, Bangladesh and Vietnam and rest 70 per cent to the domestic market, mostly used for garments exported to western countries, the company is looking towards more modernization and growth, besides newer countries to conquer.
Raymond : Brand Launch of “ Champion’s Collection” Mr. Ram Bhatnagar
Vice President & Head Sales & Distribution, Raymond Limited
During the launch event of Champion’s Collection of Raymond, we candidly asked few questions TVC: What’s Vision & Purpose behind the new champions collection launch ? RB: The sole reason to launch Champions collection is our Chairman & Managing Director – Gautam Hari Singhania who is a true champion. The entire collection showcased at the launch is inspired by him. The collection is dynamic with a versatile product mix that showcases the expertise Raymond has in product development and innovation. Mr. Singhania secured a total of 10 podiums in the entire season of Ferrari Challenge Series Europe Championship 2015 and stood 2nd in overall standings in the entire season which is the first ever person to achieve this feat ever in the debut season. TVC: What’s USP about collection as compared to your current brand in the market. RB: The entire collection has All Wool, Wool Rich, Poly Wool, PW TR, Cotton/Linen and range of Innovative fibers & Yarns. A versatile range designed with the spirit of leadership to create its own identity. The entire collection range is inspired by different race wins like Monza, Budapest, Le Castellet, Imola, Valencia, Mugello and Jubilee. TVC: What’s your Distribution Strategy ? RB: The champions collection will be available across all leading The Raymond Shops in the country. We have currently more than 750 stores across 380 towns. TVC: What is your targeted Revenue of next one year? RB: We are targeting a total revenue of 65 crores this year only from the Champions collection range.
TVC: Send Collection details of each sub brands RB: Monza – This range offers products with excellent features and value proposition. Includes 2 products – 1. New trend setting collection in Poly wool and 2. An innovative product with excellent stretch and recovery feature. Budapest – This range is a collection of cotton and linen aligned as per latest colours and designs Le Castellet – This range offers fine poly wool blended fabrics in super 90s and super 100s with innovative features. Imola – This range includes superior fabric with unique qualities. Fine fabric crafted from compact yarns with rich look and outstanding design clarity. World class range of jacketing fabrics designed in new colour combinations and design patters. Valencia – This range caters to luxurious fabrics crafted for special occasions. Ceremonial fabrics with unique design elements like jacquards, glitter yarn effect, shiny textural patterns and unique placement designs. Also few fabrics crafted from Kroy wool with easy care features. Mugello – The collection is of high end products crafted from noble fibers with luxurious handle and rich look. The range offers ultimate black fabric in the world, fine suiting fabric crafted from vicuna and wool. Luxurious suiting fabric made from Guanaco fiber and wool, fine fabric crafted from Yak fiber and wool, fine fabric made from cashmere and wool silk and super 180s wool. Jubilee – A special collection created with the essence of charm and festivity to cater to a unique range. Rich sheen and fabulous handle has been fused with the creativity of designs.
BRAND STRATEGY Strategic Management: The Art, The Science & The Craft of Business Shri Rushin H.Vadhani AGM – Market Research & Product Development AYM Syntex Limited (Formely Welspun Syntex Ltd) Business (or Strategic) management is the art, science, and craft of formulating, implementing and evaluating cross-functional decisions that will enable an organization to achieve its long-term objectives. It is the process of specifying the organization’s mission, vision and objectives, developing policies and plans, often in terms of projects and programs, which are designed to achieve these objectives and then allocating resources to implement. Strategic management seeks to coordinate and integrate the activities of the various functional areas of a business in order to achieve long-term organizational objectives. A balanced scorecard is often used to evaluate the overall performance of the business and its progress towards objectives. Strategic management is the highest level of managerial activity. Strategies are typically planned, crafted or guided by the Chief Executive Officer, approved or authorized by the Board of directors and then implemented under the supervision of the organization’s top management team or senior executives. Strategic management provides overall direction to the enterprise and is closely related to the field of Organization Studies. In the field of business administration it is useful to talk about “strategic alignment” between the organization and its environment or “strategic consistency”. According to Arieu“There is strategic consistency when the actions of an organization are consistent with the expectations of management and these in turn are with the market and the context.”
ments (the role that the organization gives itself in society), overall corporate objectives (both financial and strategic), strategic business unit objectives (both financial and strategic) and tactical objectives. • These objectives should, in the light of the situation analysis, suggest a strategic plan. The plan provides the details of how to achieve these objectives. Strategy Implementation : • Allocation and management of sufficient resources (financial, personnel, time, technology support) • Establishing a chain of command or some alternative structure (such as cross functional teams) • Assigning responsibility of specific tasks or processes to specific individuals or groups • It also involves managing the process. This includes monitoring results, comparing to benchmarks and best practices, evaluating the efficacy and efficiency of the process, controlling for variances, and making adjustments to the process as necessary. • When implementing specific programs, this involves acquiring the requisite resources, developing the process, training, process testing, documentation, and integration with (and/or conversion from) legacy processes. In order for a policy to work, there must be a level of consistency from every person in an organization, including from the management. This is what needs to occur on the tactical level of management as well as strategic. Strategy Formulation vs Strategy Implementation Following are the main differences between Strategy Formulation and Strategy Implementation-
Three-step strategy formulation process is sometimes referred to as determining where the organization or business is now, determining where it wants to go and then suggesting how to get there. Strategy formulation : • Performing a situation analysis, self-evaluation and competitor analysis: both internal and external; both micro-environmental and macro-environmental. • Concurrent with this assessment, objectives are set. These objectives should be parallel to a timeline; some are in the shortterm and others on the long-term. This involves crafting vision statements (long term view of a possible future), mission state-
BRAND STRATEGY Strategy Evaluation : • Measuring the effectiveness of the organizational strategy, it’s extremely important to conduct a SWOT analysis to figure out the strengths, weaknesses, opportunities and threats (both internal and external) of the entity in question. This may require to take certain precautionary measures or even to change the entire strategy. In corporate strategy, Johnson and Scholes present a model in which strategic options are evaluated against three key success criteria: • Suitability (would it work?) • Feasibility (can it be made to work?) • Acceptability (will they work it?) One of the most important tool of strategic management along with SWOT-Analysis, is the matrix developed by BCG- Boston Consultancy Group.BCG-Matrix also called as growth-share matrix, is a corporate planning tool, used to portray firm’s brand portfolio or SBUs on a quadrant along relative market share axis (horizontal axis) and speed of market growth (vertical axis) axis. Growth-share matrix is a business tool, which uses relative market share and industry growth rate factors to evaluate the potential of business brand portfolio and suggest further investment strategies. The analysis requires that both measures be calculated for each SBU-Strategic Business Unit. The dimension of business strength, relative market share, will measure comparative advantage indicated by market dominance. The key theory underlying this is existence of an experience curve and that market share is achieved due to overall cost leadership. BCG matrix has four cells, with the horizontal axis representing relative market share and the vertical axis denoting market growth rate. The mid-point of relative market share is set at 1.0. if all the SBU’s are in same industry, the average growth rate of the industry is used. While, if all the SBU’s are located in different industries, then the mid-point is set at the growth rate for the economy. Resources are allocated to the business units according to their situation on the grid. The four cells of this matrix have been called as stars, cash cows, question marks and dogs. Each of these cells represents a particular type of business.
10x 1X 0.1 x Figure: BCG Matrix 1. StarsStars represent business units having large market share in a fast growing industry. They may generate cash but because of fast growing market, stars require huge investments to maintain their lead. Net cash flow is usually modest. SBU’s located in this cell are attractive as they are located in a robust industry and these business units are highly competitive in the industry. If successful, a star will become a cash cow when the industry matures.
2. Cash Cows-
Cash Cows represents business units having a large market share in a mature, slow growing industry. Cash cows require little investment and generate cash that can be utilized for investment in other business units. These SBU’s are the corporation’s key source of cash, and are specifically the core business. They are the base of an organization. These businesses usually follow stability strategies. When cash cow s loose their appeal and move towards deterioration, then a retrenchment policy may be pursued.
3. Question Marks-
Question marks represent business units having low relative market share and located in a high growth industry. They require huge amount of cash to maintain or gain market share. They require attention to determine if the venture can be viable. Question marks are generally new goods and services which have a good commercial prospective. There is no specific strategy which can be adopted. If the firm thinks it has dominant market share, then it can adopt expansion strategy, else retrenchment strategy can be adopted. Most businesses start as question marks as the company tries to enter a high growth market in which there is already a market-share. If ignored, then question marks may become dogs, while if huge investment is made, then they have potential of becoming stars. 4. DogsDogs represent businesses having weak market shares in lowgrowth markets. They neither generate cash nor require huge amount of cash. Due to low market share, these business units face cost disadvantages. Generally retrenchment strategies are adopted because these firms can gain market share only at the expense of competitor’s/rival firms. These business firms have weak market share because of high costs, poor quality, ineffective marketing, etc. Unless a dog has some other strategic aim, it should be liquidated if there is fewer prospects for it to gain market share. Number of dogs should be avoided and minimized in an organization. Limitations of BCG Matrix : The BCG Matrix produces a framework for allocating resources among different business units and makes it possible to compare many business units at a glance. But BCG Matrix is not free from limitations, such as1. BCG matrix classifies businesses as low and high, but generally businesses can be medium also. Thus, the true nature of business may not be reflected. 2. Market is not clearly defined in this model. 3. High market share does not always leads to high profits. There are high costs also involved with high market share. 4. Growth rate and relative market share are not the only indicators of profitability. This model ignores and overlooks other indicators of profitability. 5. At times, dogs may help other businesses in gaining competitive advantage. They can earn even more than cash cows sometimes. 6. This four-celled approach is considered as to be too simplistic. Benefits of Strategic Management : There are many benefits of strategic management and they include identification, prioritization, and exploration of opportunities. For instance, newer products, newer markets, and newer forays into business lines are only possible if firms indulge in strategic planning. Next, strategic management allows firms to take an objective view of the activities being done by it and do a cost ben-
BRAND STRATEGY weaknesses and increased employee productivity. They also have lesser resistance to change and a clear understanding of the link between performance and rewards. The key aspect of strategic management is that the problem solving and problem preventing capabilities of the firms are enhanced through strategic management. Strategic management is essential as it helps firms to rationalize change and actualize change and communicate the need to change better to its employees. Finally, strategic management helps in bringing order and discipline to the activities of the firm in its both internal processes and external activities. In recent years, virtually all firms have realized the importance of strategic management. However, the key difference between those who succeed and those who fail is that the way in which strategic management is done and strategic planning is carried out makes the difference between success and failure. Of course, there are still firms that do not engage in strategic planning or where the planners do not receive the support from management. These firms ought to realize the benefits of strategic management and ensure their longer-term viability and success in the marketplace. Key References :
efit analysis as to whether the firm is profitable. Just to differentiate, by this, we do not mean the financial benefits alone (which would be discussed below) but also the assessment of profitability that has to do with evaluating whether the business is strategically aligned to its goals and priorities. The key point to be noted here is that strategic management allows a firm to orient itself to its market and consumers and ensure that it is actualizing the right strategy. Financial Benefits It has been shown in many studies that firms that engage in strategic management are more profitable and successful than those that do not have the benefit of strategic planning and strategic management. When firms engage in forward looking planning and careful evaluation of their priorities, they have control over the future, which is necessary in the fast changing business landscape of the 21st century. It has been estimated that more than 100,000 businesses fail in the US every year and most of these failures are to do with a lack of strategic focus and strategic direction. Further, high performing firms tend to make more informed decisions because they have considered both the short term and long-term consequences and hence, have oriented their strategies accordingly. In contrast, firms that do not engage themselves in meaningful strategic planning are often bogged down by internal problems and lack of focus that leads to failure. Non-Financial Benefits The section above discussed some of the tangible benefits of strategic management. Apart from these benefits, firms that engage in strategic management are more aware of the external threats, an improved understanding of competitor strengths and
Perspectives on Strategies – Boston Consultancy Group by Carl W.Stern https://en.wikipedia.org/wiki • www.strategicmanagementguide.com • www.insead.edu • www.strategicmanagementreview.com • Business Strategy : Managing Uncertainty, Opportunity & Enterprise by J.C.Spender • Reference Case studies on Strategic Management *Disclaimer: The views and opinions expressed in this article are those of the author in his personal capacity of knowledge & perspectives on the mentioned subject. •
Business of Hygiene Products in India – New Business, New Product, New Opportunity
Dr. Prabhakar Bhat and Mr. B.S. Pancholi (Textiles Consultant) Introduction:
Various new products are hitting the market in the recent past in India and one of the most exciting products catching the attention of investors are hygiene applications. This has a global market size of US$80 billion estimated for the year 2015. Though they originated in developed in countries their spread across the globe is clearly visible and today developing countries have the highest growth rate. In Europe and America the market has matured and growth is near stagnant. Asia Pacific, Middle East and Africa are showing high growth rate mainly because of increase in per capita income and low penetration level so far. Out of various products under hygiene the major market share is of baby diapers, sanitary napkins and adult incontinence. No doubt wipes are the other category calling attention of investors due to innovation and flushable product development in personal care wipes.
According to UN estimate current world population is above 7 bn and it is likely to touch 9 bn by 3050 and 11 billion by 2100. No doubt the child birth rate is reducing at most of the regions except Africa. The consumption of hygiene products is depending on the population, their per capita income and the education or the awareness. Of the total population 49.6% is of female and 7.6% is of aged above 65 years. The birth rate stands at 1.9% or 133 million children born every year or close to 200 million is the child population at 0 – 2 age group. Of the total US$80bn market of hygiene products, according to Euromonitor, US$43bn is of baby diaper, followed by sanitary napkins and adult incontinence. Sanitary napkin market is expected to reach US$42.7bn by 2022 of which Asia Pacific having a share of 48.9% owing to increasing awareness and adoption of better hy-
TECHNICAL TEXTILE giene practices at China, Japan and others (as per the report of Allied Market Research). The future growth in hygiene products is obviously in Asia and Africa.
be explained by example of Nobel Hygiene Pvt. Ltd. which started in 2010 and today it has 5 European machines with a turnover of INR 1.25bn. Every year at least one machine is added for making adult diapers. However, major market is still with institutional buyers, limiting to hospitalized patients. At the outset one can say that India is at the verge of rapid growth in future in the area of hygiene products. Market expansion BOMB is about to explode, it is just a matter of time!
Fig. 1. World population 1750 – 2050
Fig.2. Global Market of Hygiene Products Indian Market Indian market for hygiene products is at the verge of pace change especially for baby diapers and sanitary napkins with their penetration level being 2% and 12% (? – this figure quoted at various sources remain unchanged during the last few years though market size estimation speaks higher level) respectively. The estimation of population of babies below 2 years in India is about 70.2 mn. At 2% penetration level the yearly consumption should have been INR15bn at 3pcs/day/baby usage and at INR 10/pc. But the market size data from different sources indicate at INR 30bn in 2015. That means our penetration level has crossed 4% in baby diaper. Similarly the sanitary napkin market penetration is questionable. India has 355mn female population in the menstruation age group (as per 2011 report). That means at 12% penetration level 42.6mn ladies should use napkins. In 2011 the population was 1.22bn and in 2016 it is 1.33bn if female population is projected in that ratio then number of female in menstruation age is 387mn. According to NPCS report the sanitary napkin market is expected to touch INR45.9bn by 2017. If a lady uses 3pcs/day for 4 days having 13 cycles per year and at INR3.5/pc of sanitary napkin the penetration level works out to 21.56% by 2017 (change in women population from 2016 to 2017 is neglected in approximation). Interestingly the hygiene products in India are maintaining a growth rate well above 20% for the last 5-6 years. There is no clear data available in terms of percentage use of adult incontinence in India. The population of persons above 70 years in India is increasing year after year; 5.8% of India’s population is above 65 years and their physical mobility falls down from 94% in age group of 60-64 for men to 72% by 80 years. The use of adult diaper is still considered as taboo; however the awareness of its usage is growing. The market of adult diapers in India can best
If anyone in India is thinking of starting a new business as a diversification or due to attraction of high profit margin or thinking of entry into the product segment at right time or for using existing market network or as new product into the basket of existing business or planning for new business for the young generation in the family, hygiene products are the right choice. It is because the awareness in use of these products for health and hygiene, convenience, free from embarrassment, comfortness and many more has reached every corner of the society, thanks to media and the Government of India initiative. Fast growth of electronic media and spread of organized retailing to small towns supported by e-marketing are creating excellent platform for easy promotion of new brands; educating the customer is cost effective. The new entrants needn’t be scared of MNC bands. Indian market has resemblance to that of China in terms of size, growth pattern and economic status, may be last two aspects compared to status 2-3 decades back. The middle class of India has high purchase power and passion for modern and comfortable products. Every year 1% of the population adds to the middle class which is equal to 13mn, a huge size for promotion of any new product. Let the calculation be done the other way. Each of these 3 products under hygiene products is growing at 20-22%; let it be considered as 20% for calculation purpose. Baby diaper market was INR 30 billion in 2015 and addition of 20% for 2016 that means INR 6 billion or scope for additional production of 600 million pieces. A state-of art machine in the market produces 162 million pieces in a year at the rate of 500pcs/min and 22.5 hrs a day. This shows that every year 3-4 new machines can be added in baby diaper segment. If the same logic is used for sanitary napkins, 20% growth rate for INR 40bn market an addition of INR 8bn every year. When a new entrant invests on machine in all probability the machine speed will not be more than 800 pcs/min which will produce 259mn pcs/yr having sales value (@INR3.5/pc) INR 0.9 bn/yr. Here again scope for adding machines could be 9/yr. In adult diaper the current manufacturers are adding machines regularly. The scope therefore in this business is very high and no need of any fear for entering; one has to understand the market dynamics before entering. A rough estimate of investment is given in table 1. Product
Machine cost in INR (millions)
Project cost in INR (millions) apprx*
10 to 250
20 to 400
40 to 400
70 to 600
50 to 400
75 to 600
10 to 200
18 to 350
Hospital Under Pads
17 to 150
25 to 250
Table 1. Investment Required for Hygiene Products
The figures for project cost in the table 1 are excluding land and building cost, in other words it includes plant and machines and
TECHNICAL TEXTILE working capital. Cost wise machines are available in wide range of and selection depends on investment capacity, the type of products to be manufactured and business approach. The profitability ranges from 25% to 75% of the MRP, again depending on the business plan of the company. No doubt this is a very technical product; though not very complicated, familiarizing the same before investment is a must. New Product: The current players are continuing in business and for most of the others it can be a new business or new product. These products are used for personal hygiene and the customer will directly experience the comfort or uncomfortness it. The product is used at sensitive area of the body and customer is very cautious about any visible embarrassment or any inconvenience in usage. Any botheration in use may lead to switch over of the product, especially the customers from urban area who understands it. Hence product design is very important. More than 80% of market share is dominated by MNCs. They have many patents on various features of the products. Simple copying of the features will be disastrous. The investor has to decide his product profile carefully. There are different aspects need to be considered while deciding the product profile. Any general guideline in this regard would be misleading; involving experts is the only solution for success in this business. All the three products under discussion in the article have a common function i.e. absorbing a fluid, blood or urine. Its rate of discharge is different, quantity is different, fit in use is different and hence structure is different. All of them use a top sheet made of nonwoven or aperture film, a core consisting pulp with or without SAP or air laid, and a bottom sheet as barrier for fluid. Many other components are included that are product specific. The absorbency during usage purely depends on design of the product, apart from the type of raw materials used. Design of structure is the most crucial part of the product. Machine is custom built for this purpose and flexibility in changing this later will be limited. For the same product there are varieties of raw materials available. Selection of them influences aesthetic as well as functional properties, in addition to cost. For example top sheet is mostly nonwoven in 15 to 25 gsm; they are available in S, SS, SSS, air through, ES Air through, carded, etc. and SMS, SSMMSS, and many more combinations for other applications. They are available with treatments for quick absorption and itching free, rashes free or embossed to 3D, embossed but without 3D effect, and many more; the products with different features keep on flowing to the market. Selection of them is critical and thoughtful process. There are at least 5 to 15 different raw materials in a product, their selection, dimension, position, design, synchronization can only make the product successful in the market. Most of the raw materials are available from Indian sources. There are number of companies in the world who supply the machine, especially in China. They are available in all categories and in all price range, though not a single one in India. Machine costing as low as INR 4mn to 0.3bn are available. Selection of them is not only crucial for product quality and features but also for product cost. Each machine is customized as per the product profile and the requirement of the customer. Since machines are highly automatic and all operations are synchronized a little failure in it can lead to lot of wastages. Hence selection of machine has to be done very carefully. But beauty of these machines is, operations are made simple and maintaining them is not very critical. Apart from these three there products few more products under hygiene applications have good potential for investment. Wet
wipes for various applications, maternity pads, and hospital under pads have made their entry in the market. The breast pads, shoulder pads, under arm pads, cotton swabs, etc. are the products that will be seen in the market near future. New Opportunities: Hygiene products are excellent opportunities for business diversification or for new investment. The profit margin can be very high and need not to worry much for major brands in market. The investor has to plan how to position himself in the market. In Hong Kong the per capita usage of sanitary napkin in 2015 was 182 (Euromonitor) while it is much less in India. China had 1200 brands from 506 companies in baby diaper segment before 2013. It added 200 more brands in 2 years, both domestic and foreign. The market share of 10 brands in China is about 80% and rest is of others, interestingly the top brand is a domestic one. In India there are only three countable brands in baby diaper and sanitary napkins and hence ample scope is available for local brands to occupy the market space. The growth drivers for these products are not just the spread of awareness but the emergence of social media reaching to rural market, new buzz in the market, e-commerce and organized retailing. E-commerce as well is reaching to rural India; it has caught-up well in urban India, and hygiene products are one of the common products because there is no need to personally observe the product before purchase. India’s e-commerce market is expected to reach US$ 220 billion in terms of gross merchandise value (GMV) and 530 million shoppers by 2025, led by faster speeds on reliable telecom networks, faster adoption of online services and better variety as well as convenience – McKinsey Global Institute. Research firm Nielsen projected that rural India’s FMCG market will surpass the US$ 100 billion mark by 2025. Market share of the hygiene products in urban is more than rural mass. In 1951, the urban population of India was 62mn, 17% of the total population. By 2011 the urban population was 377 mn or 31%, it is estimated to be 42.5% by 2025. With more literacy and more job creations in cities the migration will boost up in near future. This migration adds to the opportunity for hygiene products market. India’s female workforce participation is growing at the rate of 5.6% compared to 3% of males in urban or compared to 2% of female in rural areas (2011 data); this might have improved further by now. This will support the growth of feminine hygiene and baby diaper market. Conclusion: The business of disposable hygiene products in India is a lucrative proposal. The business cycle is fast approaching the threshold point of rapid growth, a right time to enter the market. Anyone planning to diversify into new products or planning for new business or intends to add new products to the existing basket, disposable hygiene products are the right choice. A huge domestic market is available to grab, presence of MNCs is not a worry, and enormous space is available for new players. The investor has to plan properly, select a right product profile, do homework for raw material selection, not to follow herd mentality in machine selection, and be ready for establishing his own marketing network. A huge opportunity is in front of the investor, customer is still looking for right product. Hence the opportunity for business in hygiene products is plenty, many call it as “Gold Mine”.
POST EVENT REPORT
TEXTILE MACHINERY MANUFACTURERS’ ASSOCIATION (INDIA) Citation of Export Excellence and R&D Awards 2015-16
The Association’s Export Awards Scheme covers the following categories of Awards :1) Apex Export Award 2) Segment Export Awards for each of the major sectors of the Textile Machinery Industry i.e. (i) Textile Machinery Sector (ii) Parts and Accessories Sector (iii) Textile Testing, Monitoring & Controlling Instruments Sector 3) Special Export Awards: Category-wise The Association also presents Research and Development Awards for indigenous development of new technology/processes under different categories in the field of Textile Machinery Industry.
1) EXPORT EXCELLENCE AWARDS :
The Association received Ten nominations for Export Excellence Awards. These nominations were evaluated by the Awards Committee of the Association and selected the following winners.
a) Apex Export Award : This year the jury decided to Apex award to two member because of slight marks variation The first Apex Award Winner is : Rieter India Pvt. Ltd., Pune During the year 2015-16 Rieter India Pvt. Ltd. exported Textile Spinning Machinery to the tune of Rs.437 Crores which formed 48% of the total turnover. The countries to which they had exported to are Switzerland, Netherlands, Malaysia, Germany, Czech Republic, China and Vietnam etc. Recipient of the Award is : Mr. Aananda Nair , Vice President After Sales Service of the Company. The second Apex Award winner is : Lakshmi Machine Works Ltd., Coimbatore During the year 2015-16 Lakshmi Machine Works Ltd. exported Textile Spinning Machinery and Parts to the tune of Rs.523 Crores which formed 24% of the total turnover. The countries to which they have exported to are Bangladesh, Vietnam, Indonesia, China, Turkey, Nepal, Pakistan, Bahrain, Thailand, Kenya, Tanzania and Uganda etc.. Recipient of the Award is : Mr. C. Arunachalam, Senior General Manager-Sales (Global) of the Company b)
Segment Export Awards :
Winner of the Award is : Lakshmi Card Clothing Mfg. Co. Pvt. Ltd., Coimbatore During the year 2015-16, Lakshmi Card Clothing Mfg. Co. Pvt. Ltd. exported their Card Clothing and Card Room Accessories worth Rs.27 Crores which formed 22% of the total turnover. The regions to which they had exported their products are Far East, Asia, Middle East, Africa and South America. Recipient of the Award is : Mr. R. Jagadeesan, Vice-PresidentCorporate Administration of the Company. iii) For Textile Testing, Monitoring & Controlling Instruments Sector : Winner of the Award is : Premier Evolvics Pvt. Ltd., Coimbatore During the year 2015-16, Premier Evolvics Pvt. Ltd. exported Textile Testing, Monitoring & Controlling Instruments to the tune of Rs.17 Crores which formed 22% of the total turnover. The countries to which they had exported to are Bangladesh, China, Vietnam, Brazil, Turkey, Indonesia, and Nepal. Recipient of the Award is : Mr. C.R. Srinivasan, Vice-President of the Company. c)
Special Export Awards :-
i) Weaving Preparatory & Weaving Machinery Sector :-Winner of the Award is: Peass Industrial Engineers Pvt. Ltd., Navsari During the year 2015-16, Peass Industrial Engineers Pvt. Ltd. exported Weaving Machinery to the tune of Rs.23 Crores which formed 31% of the total turnover. They had exported their products to various Countries. Major export destinations are Vietnam, Bangladesh, Indonesia, China, Pakistan, Turkey, Kenya, Nepal, Egypt Iran Thailand etc. As there was no recipient from the Company present at the function, the Award will be sent to their Company. ii) Processing Machinery Sector :Winner of the Award is : Dhall Enterprises & Engineers Pvt. Ltd., Ahmedabad During the year 2015-16, Dhall Enterprises & Engineers Pvt. Ltd. exported Textile Processing Machinery to the tune of Rs.22 Crores which formed 36% of the total turnover. The countries to which they had exported to are Bangladesh, Ethiopia and Turkey. As there was no recipient from the Company present at the function, the Award will be sent to their Company.
i) Machinery Sector :-
iii) Parts and Accessories Sector :-
Winner of the Award is : Truetzschler India Pvt. Ltd., Ahmedabad During the year 2015-16, Truetzschler India Pvt. Ltd. have exported Spinning Machinery to the tune of Rs.88 Crores which formed 16% of the total turnover. The countries to which they have exported to are Germany, Brazil, Iran, China, USA, Austria and Japan. Recipients of the Award is : Mr. Kashyap Bhavsar – General Manager Finance of the Company.
Winner of the Award is : InspirOn Engineering Pvt. Ltd., Ahmedabad During the year 2015-16, InspirOn Engineering Pvt. Ltd. exported Textile Machinery Parts and Accessories to the tune of Rs.22 Crores which formed 53% of the total turnover. The countries to which they have exported to are Germany, Italy, Spain, Indonesia, Turkey, China Thailand, Netherlands, Bangladesh etc. Recipient of the Award is : Mr. Sanjay R. Kowarkar, Vice-President – Sales & Marketing of the Company.
ii) For Parts & Accessories Sector :
iv) Small Scale Sector – Textile Machinery
POST EVENT REPORT Winner of the Award is : Palod Himson Machines Pvt. Ltd., Surat During the year 2015-16, Palod Himson Machines Pvt. Ltd. exported Textile Machinery worth Rs.3 Crores which formed 25% of the total turnover. The country which they had exported to is Iran, Nepal, Rusia and Sri Lanka. Recipient of the Award is : Mr. Pratik R. Bachkaniwala, Director of the Company. 2) RESEARCH & DEVELOPMENT AWARDS: Four members nominations were received for five product developments for R&D Awards. The Jury considered three nominations eligible for the Award for their R&D efforts for the year 201516. The winner are : Lakshmi Machine Works Ltd., Coimbatore for their development of “Draw Frame LDAZ” . The newly developed “Draw Frame LDAZ” has various unique features such as 4/3 drafting system, Duo Digital processor auto levelling and sliver monitoring. The “Draw Frame LDAZ” is with 4-over-3 drafting arrangement with pressure bar, wherein the reduced web travel distance after drafting guarantees less sliver breakages and higher delivery speeds. Dual digital Processor (feed & delivery) in LDAZ ensures the accurate functioning of the autoleveller even at the higher delivery speeds. The Online Quality Monitoring System displays the quality parameters like U%,CV%,A%, 1Meter CV% and spectrogram. Hence the quality of the delivered sliver is assured with increase production of 25-40% and reduces the delivery breaks by 10-15/%. This product is Patented and LMW has accreditation under ISO 9001 & 14001 Standards with OHSAS 18001 certification. Recipient of the Award is : Mr. R. Satheesh Kumar Team Leader, Draw Frame - R&D - of the Company The next R&D Award winner is MAG Solvics Pvt. Ltd., Coimbatore for their development “AccuTrash” Automatic Trash Separator Trash in cotton has the impact right from the ginning till yarn & fabric production. Commercial decision in cotton procurement and yarn realization in spinning mills is dependent on the percentage of trash preset in the cotton. The “AccuTrash” is a testing equipment developed by the MAG Solvics has the minimum manual intervention, Automatic & accu-
rate Trash measurement through Gravimetric method. It measures real Trash content by actual extraction using buoyancy separation technique by use of air current. Air current is automatically adjusted for better Trash separation on continues basis. It has optimal sample size and testing speed. Faster testing: single pass most of the time and has long term data storage and analysis. This standalone product ; can be integrated with High Volume Fibre Tester. 80% of HVT is supplied with AccuTrash; which shows the acceptability of this instrument. It benefits to fixing the price during cotton procurement, setting up machine/process parameters in spinning preparatory, Assessment of yarn realization, Quality of the products (Yarn & Gray fabric) and improves working performance in spinning and fabric forming. Output from this product also helps in wastage reduction, Capital Cost reduction, Value addition and Labour. Recipient of the Award is : Mr. Manikanda Murthy, Managing Director of the Company.
The next R&D Award winner is :
The Indian Card Clothing Co. Ltd., Pune to a “Device for measuring Height of Revolving Flat Tops On Card of a Carding Machine” One of the key factors required for consistent yarn quality is the proximity between the revolving flat tops and the cylinder clothing. The On Card flat measurement system developed by ICC enables an accurate measurement of the height of the tops in position on the card. With the aid of a digital dial and a proprietary software, the flat tops can be measured and only those tops, which require leveling may be selected for re-sharpening to achieve the desired tolerance in the flat top height. Measurements of the revolving flat tops are transmitted on a data storing Programmable Logic Controller or computer removing the possibility of any transcription errors which occurs if the measurement is done manually. The software enables the data to be analyzed and identifies those revolving flat tops which need correction. The precise sharpening for only the relevant revolving flat tops is possible, thereby enhancing the life of the tops, maintaining consistency of the card sliver reducing wastage of fibre and improving power consumption and labour productivity. Recipient of the Award is : Mr. Ashok Kumar Pal, General Manager ( Product Application) of the Company.
POST EVENT REPORT
India’s foreign trade fraternity celebrated the 2nd Edition of The Dollar Business Power Series Conclave 2016-17,at New Delhi with a focus on ‘Make in India, Make for the World’ The Dollar Business, India’s most exclusive platform on foreign trade in India, hosted its Monsoon Edition of ‘The Dollar Business Power Series Conclave 2016-17’at The Grand, Vasant Kunj. The title of the conclave was ‘Make in India, Make for the World’. Ever since the ‘MAKE IN INDIA’ initiativewas launched by the Prime Minister in 2014, it has become a prime talking point in industrycircles. The government and the industry both acknowledge and appreciate that to boost ourGDP there is an urgent need to create an enabling manufacturing and services exports environment. And especially during a time when exports from India have beenon a decline for more than a year-and-a-half. The conclave brought together the finest minds from the Indian governmentand industry to identify and understand factors that could help India’s exports grow, and help tackle many-a-challenge that India’s foreign trade community is facing at present. Discussions were centred aroundpolicy and tax reforms like GST, the need to diversify our export basket and destinations, alternatives to our traditional first world export destinations, challenges of tariffand non-tariff barriers including IPR, need for increased FDI to boost manufacturing, e-commerce, and theutilisation of SEZs and FTAs, etc. The conclave was attended by several C-suite executives, leaders and entrepreneurs from the export-import fraternity, and wit-
nessed deliberations on various issues affecting the industry. The second edition of The Dollar Business Power Series Conclave the refore brought together some of the finest names from the industry and the government addressing vital focal areas related to India’s manufacturing and foreign trade, namely: Shri Steven Philip Warner, President (VMPL) andEditor-in-Chief of The Dollar Business, whospoke on the need to support key in-
dustries, MSMEs, and take steps to encourage and educate exporters across India’s Export temples, besides explaining the manner in which exports from the country is in a weaker state than imagined. Shri Digvijaya Singh, Member of Parliament in Rajya Sabha and General Secretary of the Indian National Congress, who spoke on improvements that are needed to make India’s manufacturing and services exports stronger, and what the current government needs to work on to make India’s manufacturing a force to reckon with around the world. Dr. L. B. Singhal, Development Commissioner, Noida SEZ, Department of Commerce, Government of India, who praised the government’s ‘Make in India’ initiative and explained how SEZs are and can further assist the programme in achieving set targets. Hon. H.E. Mr. Georges de La Roche, Ambassador of Guatemala to India, Ministry of Foreign Affairs, Guatemala, who discussedIndia and Guatemala’s and Central America’s need to increase bilateral commerce and general relations. Shri Mithileshwar Thakur, Additional Director General, Directorate of Anti-Dumping and Allied Duties, Ministry of Commerce and Industry, Government of India,who talked about challenges faced by India’s manufacturing sector, apart from discussing strategies to tackle them. Shri Ajay Sahai, Director General & CEO, Federation of Indian Export Organisations (FIEO), who spoke on various strategies that could be adopted by export-manufacturers while taking advantage of the Make in India movement initiated by the government. He highlighted various sectors that could lead the way and how challenging is India’s exports target of $900 billion by 2020. Shri SanjivSawla,Chairman, Indian Oilseeds & Produce Export Promotion Council (IOPEPC), who delivered some wonderful insights into every facet ofoil seed production andvegetable oil exports, and how India’s agri and food processing sector participants could take advantage of what global consumers have to demand. Hon. H. E. Jan Luykx, Ambassador of Belgium to India, Ministry of Foreign Affairs, Belgium, who presented his views on the ‘Make in India’ campaign and discussed why India assumes a significant position as a trading partner to Belgium. Shri Anil Sankhwal, Regional Chairman, The Gem & Jewellery Export Promotion Council (GJEPC), Ministry of Commerce, Government of India,whospoke on the role of SMEs in Make in India initiative, and especially in helping exports from India’s jewellery industry grow. The Conclave initiated some positive discussions on India’s export-manufacturing.It witnessed views on developing future strategies to contribute to India’s growing ‘globalised’ economy.
WHATS GOING WRONG IN COTTON?? India Is Cotton Surplus But Still Industry Struggling!!! Mr.Sanjay Jain,
TODAY’S STATUS: y India’s crop, which was growing every year (we became the largest in 2014-15)has stagnated/reduced for last 2 years and is facing challenges of area, yield and pests – FROM PEAK OF 398 LAC BALES, WE ARE DOWN TO 336 LAC y India surplus cotton has dwindled, leading to competition between exports and domestic usuage, now industry forced to import in end season y India’s value added industry especially spinning has been suffering despite a strong cotton crop – highest % slippages to NPAs in 2015 y One of the lowest stock to use ratio in the world – 12 to 15% against world average of 80% y Domestic cotton prices are many times higher than international prices TODAY’S CONCERNS: • Country doesn’t have sufficient surplus cotton, however exports are strong leading to forced imports at high prices at end season – hence our core advantage is getting erode. • Our competitors (Pakistan, Bangladesh, Vietnam, China etc) buying 20 to 30% of our crop, forcing industry to import • 2016-17 cotton balance sheet very precarious as sowing is 10 to 15% less and low opening stock • No proper mechanism for measuring crop arrivals and forecasting crop – hence prone to mis information and rumours spread by speculators at cost of industry • No clear cotton fibre policy • Part of season, domestic cotton prices are higher than international prices – in 2013-14 we had a record crop and still prices were 9 months higher – shows a fundamental problem INDIAN COTTON BALANCE SHEET
(in lakh bales of 170 kg each) Note: Data is as per CAB, excepting 2016-17 which is based on current estiimated sowing (12% less than 2015-16), 10% extra yield from 2015-16, same level of consumption, export and imports as
NITMA President & Deputy Chairman, NITRA
2015-16. 2016-17 shows that if exports are same as 2015-16, then no cotton would be left for mills despite high imports forecasted. Some urgent steps need to be undertaken to ensure atleast 1.5 month cotton usuage stock i.e. 40 lac bales should stay within the country. ACKGROUND: Cotton based textiles has been the main stay of Indian textiles over decades. India is one of the few nations where textiles is still skewed in favour of cotton (60%) as against the world where man made has a 60% plus share while cotton is sub 40%. One of the major reasons for this is our large cotton crop grown across 10 States. One of the largest and important questions in all sectors of the economy has been – how much role should the Government have? This question has caught momentum with the liberalization of our economy in early 1990s. The cotton textile world is no exception, where the debate has been whether the Government should leave the cotton fibre economy on its own – to grow, develop, stabilize and find its own direction and level. A country with substantial cotton surplus has a value added industry, which is struggling to even stand on its two legs, surprising but true – while nations like Bangladesh, Vietnam who have no cotton are flourishing In 2013-14, India had its largest ever crop of 390 lac bales however still for 9 months of the season Indian prices were higher than international prices. in 2015-16 prices jumped by 50% in 2 months and industry had to import, as 20% crop had been exported earlier to competing nations. Based on the above arguments, we feel that Government like other agricultural crops needs to ensure sufficient availability of cotton at competitive prices to the industry – otherwise the industry would find it difficult to move up the value added chain and become a large manufacturer of textile products like China, Bangladesh etc. It could instead be rendered as a supplier of raw material like African, CIS nations. However it’s important that while meeting the above objectives, the Government does not fall into the following traps: y The Government like the Chinese should not get saddled with unmanageable levels of cotton stock. y The cotton quality should not get impacted due to Govt/CCI getting into ginning. y The industry should not be forced to buy cotton at above international prices, and in the process be rendered uncompetitive globally. y Government purchase program to help farmers, should not lead to hoarding of cotton which disrupts market forces. y There should be no discrimination between small and big players – both should be on the same footing y Govt intervention should not lead to unpredictability and uncertainty of supply flow for the industry. IMPORTANT INITIATIVES NEEDED TO BE TAKEN:
COTTON REPORT In our opinion the Government needs to take the following further steps: y Allow funding for cotton stocking at subsidized rates of 2% below the base rate for the period October – April, so that industry can stock cotton and ensure farmers get a better price. (otherwise difficult for industry to compete with international traders who have access to low interest off shore funds) y CCI like FCI should play a constructive role by creating a buffer stock when prices are low and ensure cotton security and price stability (by keeping speculators at bay and ensuring prices are in parity to international prices). y A system of direct subsidy should be started for farmers when cotton kapas prices fall below MSP. CCI should not get in processing cotton fibre, it should just buy ready and pressed cotton fibre. y A more scientific and transparent system needs to be formulated urgently for crop forecasts and crop arrival measurement. The same needs to be conducted by an independent agency. This would avoid mishaps of 2013-14 and 2015-16 where incorrect crop estimates lead to huge losses for the industry (as it induced domestic prices going above international prices for a large part of the season) Ê Ginners should be made to compulsorily declare their pressing numbers online along with stock figures to ensure arrival data is accurate. All bales must have unique declared press marks. Ê Area under cultivation should be scientifically determined using latest forecasting techniques Ê Best practices to be picked up from other countries for agro product estimations y Impose import duty on edible oils to ensure the cotton economics is improved (as 65% of the kapas is seed – better realization from the same would improve the farmer’s return without impacting the cotton fibre prices). y Create a Cotton Board with a clear mission and goal to take India’s productivity to 1000 kgs of lint/hectare grown by 2020. Farmers earnings growth needs to come from productivity and efficiency rather than industry paying more for fibre – this is only way to protect interests of both farmer and industry. There is good scope for increasing yield if agronomy research is taken up & farmer is given knowledge on Precision Farming
Techniques. The farming techniques differ from area to area. • The research grant to CICR has been reduced to ₹100 lacs from ₹300 lacs. y Create standards for cotton fibre in terms of moisture, trash and packing to ensure the cotton retains its name of “White Gold” which has lost its sheen due to manmade introduced impurities. Need to put check on Ginners for adulteration. y Create a program to work on reducing contamination in Indian cotton – today Indian cotton is losing minimum 5 cents/lbs due to higher contamination levels as against other competing orgins like West Africa, CIS, USA, Brazil etc. y Mandi tax / APMC fees should be applicable only for transactions done through it – where no service provided, why should the industry be burdened with fee? y Import and export data of cotton fibre should be available to industry within a week of the preceding month (as all ports are computerised, the HS Code based data of trade should be readily available).
To summarise, the main suggestions of this note are: Short term: y Ensure the Indian industry gets cotton fibre throughout the year at atleast international spot prices i.e. maximum price of Cotlook Index less 3 cents i.e. cost of transportation etc. y Ensure sufficient stock to use ratio for cotton fibre so that the industry is not at a disadvantage to its competitors due to cotton, which is India’s biggest strength. Typically India’s stock to use ratio has been very low. y Govt should avoid getting involved in manufacturing process of ginning - pay the farmer directly the difference between MSP and market price if any y Long term: y Create a comprehensive cotton fibre policy, defining clearly action needed in various scenarios. y Create a roadmap to make Indian cotton yield and quality amongst the best in the world y Revamp role of CCI and CAB to meet the defined objectives
MARKET REPORT: SURAT Tafeta silk, net, softy silk fabrics are in high demand
Value addition in fabric has given a new way to the surat textile traders. The wholesale market of syntheic saree and dress material is fashion dependend. At present, value added mix synthetic fabrics are in fashion. Tafeta silk, twotone, net, Bhagalpuri grey, softy silk fabrics are glittering in surat textile market. In Indo-western trend, traders of surat are using tafeta silk fabrics in saree-blouse, dress-lace and in gown. These mix fabrics are attracting costomers. New designer collection of digital printed fabrics has also made it’s unique place in the market. In medium price range of Rs. 300 to 800, traders are demanding plain and printed fabrics of catonic by nylon twotone, vetles, 60 gram fabrics. Ahead of Navratri festival, digital printed kalina in kurti and Kahdi, meti weave fabrics are fashion. The retailers from all over the country has allready started purchasing of
synthetic saree and dress materials from surat wholesale textile market ahead of Durgapooja-Diwali festivals and marriage season. The traders of finished synthetic fabrics are now increasing their inventories. Textile processing mills are receiving large quantity of raw grey fabrics for dyeing and printing job-work. As the demand of raw grey fabrics has risen, weavers of Surat are now stocking big lot of yarn in their factories.
Synthetic yarn price increased upto Rs. 3/Kg. Once again the prices of synthetic yarn are rising in surat local market. Cruid oil price has gone up to 53 per berrel, incresed by 10 percent during the last month. Because of countinues price rise in cruid oil, PTA & MEG(basic raw material of yarn) polyester chips; the cost of making of synthetic yarn is increasing and this has led to price hike in yarn. Polyester filament yarn makers has tighten
MARKET REPORT: SURAT the first sale of september. Spinners and local texturisers has incresed the POY and FDY prices upto Rs. 2.5/3 per Kg. Benchmark 80 crimp denier price stood at Rs. 80/kg. whereas 80/72 roto yarn price reached at Rs. 102-103/kg in first weak of september. US dollar exchange has gone up to over Rs. 67 in last fortnight. Surat yarn market sources said, prices are not still stabilized. The weakening indian rupee against US dollar added to the woes of yarn manufacturers. Weak rupee, price rise in PTA, MEG and polyester chips will further increases the prices of various deniers of polyester synthetic yarn.
Reduce excise duty to 6 % and increase TUF subsidy : SGCCI urges Union Textile Minister
The Southern Gujarat Chamber of Commerce and Industry (SGCCI) has made a representations before Union Textile Minister Smriti Irani for reduction of exicise from 12.5% to 6% on textile goods. It has also demanded to increase the TUF subsidy to 30 % again. The textile minister was in Surat in last month to attend “Source India 2016” exhibition and buyer-seller meet. In its representation to Textile minister, The SGCCI said : “The synthetic textile industries is facing tough competition from neighbour countries and because of 12.5% heavy excise duty, the production cost is very high. The industry suffers disadvantages in terms of input costs when compared with its competitors. Huge oppotunities are available for the indian Made Made Fiber(MMF) based in-
dustry to expands its market share. To increse the share of exports, duty reduction in synthetic textile goods is necessoy.” Technology Upgradation Scheme(TUF) is remain very popular in textile sector. The sppining, weving, processing and other textile segments has taken an advantages of TUF scheme. Earlier, under TUF scheme, 30 percent subsidy was given, but it had been ruduced to 10 ppercent. The SGCCI has demanded taht it should be 30 percent again. Textile Minister Smriti Irani also met representatives if Surat Textile Traders Association, Processors Association and Weaver Assocication. The “Source India 2016” exhibition and buyer-seller meet was held in surat on 13-14 August. Buyers from nearly 33 countries had visited The two days event.
Annata world App for Yarn
The Surat based Yarn company Ananta World has developed web portal “Ananta World App” for Yarn business. This App is providing usuful details of almost all type of Yarns(20 denier to 3000 denier), type of Yarn, its quality, Yarn price, discount offering by manufacturing company nad stock availabily. Weavers can order and make payment through this App. Annata World Director Parth Shah said, this App is a bridge between yarn manufacturers and users. All the useful details of domestic as well as imported yarn are available on this App. This App is useful tool to reduce the time and cost. Users can complete all the procudure of purchase of Yarn on their finger. More than thousand users are now taking the advantages of Ananta World App.
Denim Zone and Chinese Pavilion to be highlight of Yarn, Fabric & Accessories Trade Show (YFA) 2016 Ê Denim Zone to feature top 20 Indian denim makers Ê A conference to be held in association with TIT-Bhiwani and Textile Association of India Ê WGSN to be trend partner Ê Exhibition space doubles with addition of new hall A special highlight of the upcoming second edition of the Yarn, Fabric & Accessories Trade Show (YFA) Show which will run from November 23 (Wednesday) to 26 (Saturday), 2016 will be the Denim Zone, which will see 20 top Indian denim fabric makers exhibiting their denim innovations. Another highlight is ‘YFA Talent’, a fashion designing contest for upcoming talent from leading fashion designing institutes. To add an icing to the cake, the organizers have also arranged a conference in association with TIT-Bhiwani and the Textile Association of India (TAI). One more initiative is ‘Titoba’, an alumni meet with a gathering of more than 800 top industry professionals in association with TIT Bhiwani and again the Textile Association of India (TAI). There will also be a special Chinese Pavilion, where around 40 Chinese exhibitors will showcase yarns, fabrics and garment accessories. Additionally, WGSN, the global authority on fashion trends will be the Trend Partner and will also be putting up a Pavilion. There were more than 100 exhibitors in the 2015 edition, which was visited by more than 7,477 visitors. For the 2016 show, the organizers expect over 250 brands from several countries and more than 15,000 visitors, who too are expected from 15 countries. Their optimism stems from the fact that with still more than 100 days to go, nearly 80 percent of the space has already been
PRE EVENT REPORT
booked, mainly driven by several returning exhibitors who have booked bigger stalls, mainly due to the good results derived from their participation at the 2015 edition. All this has led to the organizers doubling the exhibition space from one hall in 2015 to two halls for the 2016 edition, which will feature products beginning right from fibres to yarns to fabrics and finally accessories and will also bring renowned suppliers from the these four segments closer to buyers. Prime Minister Shri Narendra Modi in a letter to the organizers expressed his happiness on the organization of the YFA 2016 show and sent his best wishes to the organizers and participants. Union Minister for States for Textiles, Shri Ajay Tamta also said that the YFA Show can prove to be a gateway for companies across the country to enter export markets. The Minister further added that the trade show is also helpful for the Make-in-India program of our Prime Minister, as the show will encourage multinational as well as domestic companies to manufacture products in India and make the country a top foreign direct investment destination. The fair is organised by Vision Communications, supported by the Northern India Textile Mills Association (NITMA) with AEPC (Apparel Export Promotion Council), TA(I) (Textile Association of India), PDEXCIL (Power loom Development Export Promotion Council), CMAI (Clothing Manufacturers Association of India), FOHMA (Federation of Hosiery Manufacturers Association), NAEC (Noida Apparel Export Cluster), NITRA (Northern India Textile Research Institute), U.P. Apparel Exporters Association and PTA Users Association as supporting associations. For more information visit www.yfatradeshow.com
YnFx ExportWatch Report – August 2016 Vidya Vadgaonkar
Email: Vidya@ynfx.com Tel: +91 22 66291122 Mobile: +91 9619 293725
India’s overall exportdrops in july India’s merchandise exportin July 2016 was valued at US$21.69 billion (INR145,770 crore),down6.8 per cent (1.6 per cent lower in INR terms) compared to the levels in July 2015. Total exports for the period April-July2016-17 was down 3.6 per cent at US$87 billion (INR528,731 crore, up 1.6 per cent) over the same period last year. Imports in July 2016 were valued at US$29.5 billion (INR197,932 crore) and were 19 per cent lower (14.5 per cent lower in INR terms) over the level of imports in July 2015. Cumulative imports for the period April-July 2016-17 was at US$113.99billion, down 16.3 per cent (INR763,687 crore, down 11.8 per cent) over the same period last year. Crude oil imports declined 28.1 per centin July 2016 and 25 per cent drop during April-July 2016-17. In similar comparison, non-oil imports were 15.8 per cent lower in July 2016 and 13.4 per cent lower in April-July 2016-17. As a result, trade deficit for April-July, 2016-17 was at US$26.99 billion, which was lower than the deficit of US$45.98 billion in AprilJuly, 2015-16.
pared to July 2015. Indian spinners were confronted with a fall of their margins and found it difficult to compete on the international market. Chinese imports of cotton yarn from Vietnam in July have continued to soar due to receding yarn prices there to the detriment of Indian and Pakistani exporters. With yarn imports declining from China, Bangladesh became the largest importer of spun yarns from India in terms of value in July. Bangladesh imported spun yarns worth US$286.64 million with average unit price realization at US$3.10 a kg while China imported at an average unit price of US$2.57 a kg during the month.
A. Spun Yarn Exports - By Port ‘000 Kgs
Associations sign MOU with Afghanistan to boost Direct export of fabrics
Synthetic and Rayon Textile Export Promotion Council (SRTEPC), apex body of Indian textile industry and Southern Gujarat Chamber of Commerce and Industry (SGCCI) have jointly signed a memorandum of understanding (MoU) with a delegation from Afghanistan for boosting direct export of polyester fabrics and made-ups from India, especially from MMF hub in Surat to Afghanistan.Afghanistan is a fast emerging market for textiles and India currently has negligible direct trade with Afghanistan and majority enter this market through third countries. The MoU was signed during the Afghanistan delegation’s recently visit at Source India 2016 held on August 13 and 14.
Delhi TKD ICD
Indian textile sector may get hurt by TPP Textile and clothing sector accounts for roughly 5 per cent of India’s GDP, 15 per cent of its industrial output and export earnings and provides livelihood to 55-60 million people directly or indirectly. India not a party to the Transpacific Partnership Pact (TPP) comprising Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, Vietnam, and the US. Thus, the TPP is likely to hurt India’s trade with its most important partner— the US. As US is a key export destination it will have serious implications for India’s textile and clothing sector especially post-Brexit turmoil in Europe, as it will further increase India’s dependency on US markets.
Bangladesh pays more for indian yarn than China Spun yarn exportsin July 2016plunged 36.1 per cent in volume terms while itwas down36 per cent in value terms.Spun yarn (all kinds) shipments were at 81.3million kg worth US$237 million or INR1,575crore, implying per unit realisationof US$2.91 per kg which was up US cents 13 from previous month and unchanged as com-
YARN REPORT InJuly 2016, 83 countries imported spun yarn from India, with Bangladesh at the top accounting for 18.2 per cent of the total value with imports rising 23.9 per cent in terms of volume YoY andclimbing 21.5 per cent in value YoY. China became the second largest importer of spun yarns in July and accounted for around 18.17 per cent of all spun yarn exported from India. Export to Chinaplunged 74.8 per cent in volumes and 74.5 per cent lower in value. Peru was the third largest importer of spun yarns, which saw volume surging 96.8 per cent while rose 93.1 per cent. These three top importers together accounted for around 42 per cent of all spun yarns exported from India in July. Cotton yarn export was at 63.2 million kg in July with 74 countries importing yarn worth US$186.6 million (INR1,241 crore). The average unit price realization was at US$2.95 a kg, up US cents 17 from previous month and up US cents 4 from the same month a year ago. China was the largest importer of cotton yarn from India in July, followed by Bangladesh and Peru.The top three together accounted for more than 50 per cent of cotton yarn with combined volume at 33.7 million kg worth US$93.8 million.Peru, Turkey,Tunisia,Braziland Greecewere among the fastest growing markets for cotton yarn, and accounted for 9.1 per cent of total cotton yarn export value. Ten new destinations were added for cotton yarn export, of which, Bulgaria, Syria, Cote D’Ivoire and Honduras were the major ones. Twelve countries did not import any cotton yarn from India, including Cambodia, Djibouti, France,Oman and Algeria. They had imported yarns worth US$1.39 million in July 2015. In July 2016, significant deceleration was seen in export to China,Canada, Chile, Ukraine and Australia. Combed cotton yarn accounted for 61.8 per cent of cotton yarn exported in July with volumes at 39.1 million kg worth US$125.5 million. Carded yarn export was at 19.25 million kg. Their respective unit value realization was US$3.21 per kg and US$2.60 per kg. Open ended yarn export was at 3.5 million kg at an average price of US$1.60 a kg. China cutting yarn imports, more from India China, a top importer of India yarns, particularly cotton, has significantly reduced its sourcing in recent past. However, India continues to be the major supplier of yarns for China. China has simultaneously reduced yarn imports from the World over the past one year.In July, India’s cotton yarn exports to China plunged 75 per cent year on year both in terms of shipment and value. During the month, shipment was just 17 million kgs valued at US$285 million as
49 per cent to US$560 million for 231 million kgs. In June 2016, total import were at 159 million kgs (US$400 million) as against 216 million kgs in July 2015 (US$593 million). Comparatively, import from India was 34 million kgs (US$82 million) in June 2016 as against 62 million kgs (US$169 million). From Vietnam, yarn imports into China in June 2016 stood at 52 million kgs (US$133 million) as against 46 million kgs (US$130 million) in July 2015. Thus, imports from India fell and those from Vietnam rose, partially covering the reduction from India.
China Cotton Yarn Import (US$ mln) Total
HS CODE: 5204, 5205, 5206, 5207
Price-wise, Pakistan was the cheapest supplier of cotton yarn for China, followed by India and then by Vietnam. (See graph below). The average import price for all cotton yarn into China was US$2.51 per kg. The same for Pakistan was US$2.14 a kg, India US$2.40 a kg and US$2.55 for Vietnam in June 2016. The same in July 2015 was US$2.75 a kg (Total), US$2.28 a kg (Pakistan), US$2.72 a kg (India) and US$2.83 a kg (Vietnam). Thus. It is apparent the although prices have dropped over the period, Vietnam prices continued to be remain the highest and Pakistan the lowest.
B. Fibre Exports - By Port ‘000 Kgs
against 66 million kgs worth US$1,118 million. This significant drop is likely to impede Indian exports in coming months since China has trained its eye on Vietnam goods. In 2016, China’s cotton yarn imports dropped 30 per cent year on year to 960 million kgs worth US$2,430 million. In similar comparison, import from India declined
YARN REPORT Manmade fibre yarns export rises 100%man-made fibre yarns exportwas at 6.75 million kg in July, comprising 2.70 million kg of polyester yarn, 3.08million kg of viscose yarn and 0.78 million kg of acrylic yarn. Polyester yarn exports were up5.7 per cent in value while viscose yarn exports valuesurged41 per cent during the month. Acrylic yarn exports saw a drastic plunge of 36.2 per cent in July. Unit pricerealization was down US cents 12 a kg for polyester from a yea r ago and that of viscose yarn was up US cents 8 a kg. Acrylic yarn unit price realization was down US cents 6 a kg year on year basis. Polyester spun yarns wereexportedto 50 countries in July aggregating US$6.07 million with unit price realization averaging US$2.25 a kg. A total of 2.70 million kg was exported, of which, 19.6 per cent was shipped by Turkey alone. Twelve new destinations were found for polyester yarn this July, of which, Saudi Arabia,Peru,Syria, Ecuadorand Guatemala were the major ones. Viscose yarn export was valued at US$9.50 million or INR63.2 crore and volume at 3.08 million kg, implying average unit price realization of US$3.08 per kg. They were exported to 27 countries with Iran at the topworth US$2.25 million. It was followed by Belgium with imports worth US$1.96 million. Both these markets accounted for 45.1 per cent of all viscose yarn exported in July. Brazil, Algeria, Bangladesh and Colombia were the fastest growing markets for viscose yarns while Turkmenistan, Syria, Australia, Germany and United Arab Emirates were the new major markets. Pakistan, Guatemala and Argentina were the major ones among the 10 countries that did not import any viscose yarns during the month. Blended yarns exportfalls in july Blended spun yarns export was worth US$32.4 million in July, down 9.9 per cent YoY while volumes edged down 2.6 per cent at 11.3 million kg. During the month, 5.4 million kg of PC yarns was exported worth US$14.5 million. Another 4.3 million kg of PV yarns valued at US$11.1 million were exported. Acrylic/cotton yarn prices were down 17.3 per cent YoY. In July, 1.3 million kg of other blend of yarns were exported worth US$5.84 million. Bangladesh and Egyptwerethe largestimporters of PC yarn from India in July followed by Argentina.Latvia, South Africa, Australia, Australia and Guatemalawere the fastest growing markets for PC yarns while South Koreasignificantly reduced its import of PC yarns from India. Djiboutiand Lebanon were among the 8 countries that did not import any PC yarns from India during July. Chile was the major destination among the 5 new markets found in July. In July, US$11.1 million worth of PV yarns were exported from India with volumes at 4.3 million kgs. Turkey continued to be largest importer of PV yarns from India followed by Iran with total volume at 2.6 million kg worth at US$6.6 million. Honduras and Romania were the new major markets for PV yarn while 7 countries did not import any PV yarn during the month, including the major ones like Tunisia, Poland and Madagascar.
C. Filament Exports - By Port â€˜000 Kgs
Delhi TKD ICD
Filament yarns export continues downtrend
In July, all types of filament yarns export aggregated 30.3 million kg, declined 14per cent YoY whilevalue was down 18.7 per cent to US$50.6 million. Filament yarns include polyester, nylon, polypropylene and viscose filament yarns and were exported to 75 countries during the month. More than 89 per cent of filament yarns were of polyester, of which, DTYs were the largest at 72.4 per cent. During the month, 29 million kg of polyester filament yarns were exported worth US$45.1 million. Brazil and Turkey continued to be the major importers of polyester filament yarns, followed by Bangladesh. The three together accounted for 49.2 per cent of polyester filament yarn exports. Brazil was also major importer of polyester DTYs and Turkey was major importer of PFYs.
D. Exports by Mode of Shipment â€˜000 Kgs
Sri Lankawas the major importer of nylon filament yarn in July with volumes at 51,000 kg worth US$0.38 million. In value terms,USA and Japanwere the other largest markets for nylon fila-
YARN REPORT ment in July, worth US$0.31 million. Polypropylene filament yarns were exported to 16 countries in July with volumes at 219,000 kg worth US$0.43 million. Kenyawas the major importer of PP yarns. Tanzania and Poland were the other major importers of PP filament yarns in July. Around872,000 kg of viscose filament yarns were exported in July to 21 countries from India valued at US$3.6 million. During the month, 178,000 kg of VFYs were exported to Japan. It was followed byGermany and Czech Republic. Cotton export declines again Cotton fibre export was at 13.1 million kg or 77,330bales (of 170 kg each) in July which declined 72 per cent YoY and was valued at US$23.9 million, down 67.7 per cent.Bangladeshand Vietnamwerethe largest importers of cotton with combined volumes at 64,537 bales amongst the 19 countries that imported cotton from India.
Exports of manmade fibre were at 8.7 million kg, worth US$11.7 million. These included ASF, PSF, VSF and PPSF. USA and Bangladesh were the largest importers of PSF during July while Iran and Pakistanwere the major importer of VSF, in similar comparison. Vietnamwas the dominant buyer of ASF. Similar report on Fabric is under preparation While this report is dedicated to fibres, filaments and spun yarns, we are in the process of preparing a separate report covering all kinds of fabric exported from India. Like this report, it will provide in-depth analysis and statistics of fabric exported from 33 ports in India accounting for 90% of total volume and value of export. We shall be glad to offer early bird discount for this report. To know more call us on 022-66291104, 66291141.
September 2016 14-15 Filtrex India 2016 Place : Delhi/ India, info: http://www.edana.org/education-events/ conferences-and-symposia/event-detail/filtrex-india 16-18 YARNEX Place : Tirupur/ India, info: www.yarnex.in 16-17 World Textile Conference Place : Mumbai/ India, info: www.textileassociationindia.org 21-23 Outlook 2016 Place : Madrid/ Spain, info : www.edana.org 30th Digital Textile Conference Place : Milan/ Italy, info: http://dtc.fespa.com/en/ October 2016 11-13 FILTECH 2016 Place: Cologne/ Germany, info : www.filtech.de 11-13 Inter textile â€“ Autum Edition Place : Shanghai/ China, i Info: https://intertextile-shanghai-apparel-fabricsautumn.hk.messefrankfurt.com 12-14 CINTE TECHTEXIL Place: Shanghai/ China, info: www.techtextilchina.com 18-21 IFAI EXPO 2016 Place : CHARLOTTE, NC, info : http://ifaiexpo.com/ 21-25 ITMA ASIA + CITME 2016 Place: Shanghai/ China, info : www.itmaasia.com
November 2016 10-12 ICTN 2016 Place : Delhi, India, info : www.textileconferenceiitd.com 15-17 Non Wovens Intermediate Course Place : France, info: www.edana.org 16-18 INTEX SOUTH ASIA 2016 Place : Colombo/Srilanka, info: www.intexfair.com 17-19 ITMF Place: Jaipur/ India, info: www.itmf.org 23-26 YFA Place: New Delhi/ India, info: www.yfatradeshow.com 23-25 Textech Indonesia 2016 Place : Jakarta/ Indonesia, info: http://textechonline.org/textechindo/ December 2016 1-2 Make in India Conference Place: Mumbai/ India, info: www.textileassociationindia.com 3-8 10th INDIA ITME 2016 Place: Mumbai/ India, info: www.india-itme.com 6-7 Spunbond Advance courses Place : France, info: www.edana.org 8-11 FESPA Eurasia 2016 Place : Istanbul/ Turkey, info: http://eurasia.fespa.com/en/
CMAI APPAREL INDEX CMAI APPAREL INDEX
APPAREL NDEX A Report on CMAI’s Apparel Index for the First Quarter (April-June 2016) shows Growth bounces back to 5.45 points as Small Brands improve Performance CMAI’s Apparel Index for Q1 April-June FY 2016-17 indicates the industry has managed better growth with overall Index Value at 5.45 points compared to previous quarter (Q4) where the overall Index Value was 3.79 points. Giant and Large Brands, like always have maintained their growth trajectory which is still much higher than Small and Mid Brands. In fact, growth this quarter for Giant and Large Brands is higher than last quarter but lower than the same quarter previous year. The trend is similar for Mid Brands however, it’s the Small Brands that have performed much better this quarter compared to other quarters, touching 4.45 points. Perhaps, what made Small Brands improve performance this quarter was the unusually low increase in Inventory Holding at 1.78 indicating Small Brands didn’t hold inventories long enough. The Index Value bouncing back to 5.45 points is mainly on account of restricted increase in Inventory Holding at 1.72, most often this figure is much higher in other quarters. Q1 iNDEX REfLEcTS gRowTH oN TRAck CMAl's Q1 Apparel Index for the April-June (FY 2016-17) clocked in 5.45 points growth. This is approximately 22.47 per cent higher than the index for Small Brands (with turnovers of R10 to 25 crores) which stood at 4.45 points. For Mid Brands (turnover of R25-100 crores), growth is 5.46 points. They have performed better than Small Brands. However, it’s the Large Brands with 6.72 points and Giant Brands with a high Index Value of 9.57 points that have led the growth story this quarter. In fact, Large and Giant Brands have consistently done well in the past few quarters. Notably, Index Value for Giant Brands is 75.56 per cent higher than the Overall Index Value. Generally, Q1 is known for buoyancy in sales
over previous quarter, being start of summer season. This quarter, Small Brands performed relatively better and narrowed the gap with other groups which helped in boosting overall Apparel Index Value. The restricted Inventory Holding however, could indicate controlled production and clearance of carried forward stocks. Although, Sales Turnover failed to show expected buoyancy in the quarter and Sell Through had limited growth. SALES TuRNovER imPRovES, iNvENToRy HoLDiNg DiPS The correlation between Sales Turnover and Inventory Holding explains the difference in Index Value of different brand groups. A close look at Sales Turnover and Inventory Holding reveals the reason for Index Value not growing as much is because there’s an increase in Inventory Holding against the improvement in Sales Turnover, improvement in sales is getting offset by increased Inventory Holding. And moderate increase in Sell Through and Investment generally fails to give the required boost in Index Value. As Sanjay K Jain, Managing Director, T T Ltd puts it, “We operate in the economy segment and cater to the middle class who have many aspirations but limited budget. This segment is extremely price sensitive and we have always been tempted to give promotional schemes to compete, however since last one year we have changed track and are focusing on better value for money i.e. Same price but better quality. Hence, our focus has shifted to quality rather than price. Consumers remember quality everyday and price just once.” Rajiv Nair, Celio, says that the Sales Turnover for the brand in the quarter has not been constantly growing as he would have expected and since they
Overall Index Value
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CMAI APPAREL INDEX didn’t opt for Mid-Season discounting, it increased their Inventory Holding, “Overall, we have seen a slowdown in sales in May/June compared to February, March, April, which was quite strong. This, has been the trend in the industry as well. We have not resorted to Mid-Season discount as we did last year to ensure we don’t reduce our margins in the middle of the season. The stock levels are a bit higher than we would like but it’s a function of the market momentum.” In comparison at Classic Polo, Inventory Holding has gone down vis-a-vis last year, as their business has scaled up, inventory has also shot up but they are all against orders, as Usha Periasamy, VP-Operations & Brand, Classic Polo observes, “Classic Polo's sales through has scaled up due to improved designs and on time deliveries. Secondly, wide range of casual fashion at affordable price is another disguised reason contributing to the hike. Customer choices and preferences are well studied prior to the seasons from trade partners, dealer research and online international forecast standards (WGSN) to deliver merchandise to match best to target audience's perceptions.” On same lines, Vinod Kumar Gupta, Managing Director, Dollar Industries opines, “The growth in our Sales Turnover has come from product diversification and deep market penetration across the country, but there has been an increase in our Inventory Holding actually due to our strong backward integration.” For both Dollar and Classic Polo, increase in sales has increased their inventory investment, if not Inventory Holding. On the other hand, Avadhoot Sansare, Business Head, VIP, says they have increased sales as well as controlled Inventory Holding, “We have managed growth in Q1 over last year and managed to reduce inventory through ‘Better Planning’. We have some strong products in our portfolio and there is a steady demand for these. This year, we managed supplies well and that has resulted in 10-15 per cent sales growth over last year. Also, better sales planning, corrective action taken in the beginning of Financial Year in manpower allocation and distribution network helped us to take advantage of consistent supplies.” However, the overall picture reveals Giant Brands have grown maximum over last quarter, since they could manage much higher Sales Turnover and limit Inventory Holding. Big BRANDS mAiNTAiN LEAD, SmALL BRANDS REDucE gAP If Small Brands (turnover r10 -25 crores) are to be compared with Big Brands (turnover above 25 crores), the Index Value of Big Brands at 6.53, is almost 47 per cent higher than that of Small Brands at 4.45. This time the gap between Big Brands and Small Brands is unusually less. The bigger gap came only in Sales Turnover, with
higher Sales Turnover 4.75 points for Big Brands as against 3.15 for Small Brands, rest of the parameters however, were not significantly lower for Small Brands. The notable difference this quarter is the Small Brands have improved their performance comparing it with earlier surveys and Big Brands have not been able to keep their pace of growth, comparing it with the same quarter in previous year. A comparison of Apparel Indices of Q1 AprilJune 2016 and 2015 reveals the overall Index Value was 13.76 percent higher at 6.2 last year compared to 5.45 for 2016. Reason: lower growth performance of most parameters except a reduction in Inventory Holding. Overall, the apparel industry grew but with a lesser rate of growth in the same quarter last year on all aspects such as Sales Turnover and Sell Through. On the other hand, Inventory Holding showed lesser increase in 2016, as a lower increase reflecting better control on inventory causing lesser impact on bottom line. The two important points that draw attention are: Small Brands have significantly reduced Inventory Holding this year to 1.78 from 3.08 earlier. Second, there’s consistent drop in growth rate in Mid, Large and Giant Brands when compared to performance same quarter previous year. Except Inventory Holding, all performance parameters have shown lower performance. CMAl's Apparel Index aims to set a benchmark for the entire domestic apparel industry and helps Brands in taking informed business decisions. For investors, industry players, stakeholders and policymakers the index is a useful tool offering concrete and credible information, and is an excellent source for assessing the performance of the industry. The Index is analysed on assessing the performance on four parameters: Sales Turnover, Sell Through (percentage of fresh stocks sold), number of days of Inventory Holding and Investments (signifying future confidence) in brand development and brand building.
EVEREADY A Rieter Com4®ring licensee in India
“My customers place repeat orders – Com4®ring yarn gives them confidence in respect of lower variation in yarn quality to produce consistent quality fabrics.” Mr. S. Saravanakumar, Managing Director, Eveready Spinning Mills Pvt. Ltd. Eveready Spinning Mills Private Limited was established in the year 1988. The group now operates four spinning mills located within a 3 km radius. The currently installed capacity of the group exceeds 151 000 spindles, 2 300 rotors and 60 high-speed automatic circular knitting machines. It has a production capacity of 36 million kilograms of yarn per year.
The total turnover of the group is US$ 116 million. Quality is an important topic within the company. The group is ISO 9001:2008 certified by UKAS Quality Management System. In addition, certification for “Usterized Yarn” has been recommended.
Com4® Yarns – Yarns of Choice Com4® yarns from Rieter spinning machines fulfill the most exacting requirements. Excellent properties ensure competitiveness in a dynamic market. The benefits are also visible in downstream processing and in the final product.
– ring-spun yarn
– compacted ring-spun yarn
– rotor-spun yarn
– air-jet-spun yarn
EVEREADY Spinning Mills Pvt. Ltd., Kottaiyur, Thadicombu – 624 709 Dindigul, Tamilnadu, India email@example.com www.evereadymills.com
Amith Garment Services Material Testing Solutions for Textile & Apparel Industry
#231, 2'nd 'C' Cross, 7'th main, Nagendra Block, BSK 1'st Stage,Bangalore - 560050. Phone/Fax : 080 - 26727908 / 26720341,Mobile : 9845053517 , Email : firstname.lastname@example.org, email@example.com firstname.lastname@example.org Website : www.amithgarmentservices.com
Mr. Bipin Vora : 9376 97 5957
Associates Digital, Knitting, Embroidery, Plain Dobby, Jacquard Fancy Garement Clothes
Import Export Consultant
Varnita Tex les has been recognised by the Government of India as a Star Export House for their Superb Performance in Exports.
About Us It gives me immense pleasure to introduce ourselves as Varnita Tex les Pvt. Ltd a leading exporter company. We are located in central part of India which is co on boomed area and has great advantage of raw material hides. We are the exporter of tex le raw materials, all types of yarns & ﬁbers, recycled materials and fabrics. We have regularly been serving many sa sﬁed customers in countries like China, Bangladesh, Malaysia, Portugal, Poland, Belarus, Peru, Colombia, etc. Varnita tex le is an integrated organiza on that has both the capability and the experience to control every aspect of the produc on process and supply chain. We have qualiﬁed and excellent teams in order to provide our customers with professional products backed by vast exper se.
Our Products Raw Co on
Kni ed Fabrics
100% Co on Yarn
Co on Waste
Oﬃce no. 212, Shagun Arcade,Plot no. 8, Scheme no. 54, PU-4, AB Road, Vijay Nagar Circle, Indore (M.P.), India Pin : 452010 Tel : +91 (0) 731 4025101 , +91 (0) 9993544393 Email : email@example.com Skype : parimal1986
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