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Strengthening the Base of the Industry

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ormally all Novembers and Decembers are quite pleasant throughout India, but not for the trade and industry which is gripped by the Budget fever, till the Hon'ble Finance Minister delivers his Budget Speech in Parliament.

This year was no exception. The textile industry was anxiously awaiting reduction in excise duty on man-made fibres and had sleepless nights. But the bonafide expectations of the man-made fibre textile industry was dashed to the ground on the D-day. Even though productivity of Indian cotton is much lower than the world average, the country is still the second largest producer of cotton in the world. This is so because uptil now, the country was generous enough in making available land for cotton cultivation. Such a situation may not continue for long. After all India is a land-deficit country. There are competiting claims on lands for various purposes like Agriculture, infrastructure, industrial projects, social needs, housing etc. Besides, Cotton cultivation requires large quantities of water, but water is scarce. In such circumstances, the pressure on cotton must be lightened. Hence, the excise duty on cotton stream of production on the one hand and man-made fibres and man-made fibre textiles and ready-made garments on the other must be the same, so that the decision of the consumer is not unduly influenced by the level of taxation. The distinct preference of Aam Admi for polyster-based fabrics should not be overlooked. In the years to come, when at the global level, production of cotton is going to fall short of its requirement, willy-nilly, there is going to be a reversal of role between cotton and man-made fibres. Hence, Government has to create conditions which are conducive to much larger investments in the manufacture of man-made fibres. This view of neutrality intaxation gets a direct support from the National Fibre Policy put forward by the Ministry of Textiles, Government of India. This will create a true level-playing field, for diverse fibres, whether natural or artificial and synthetic, to grow on their intrinsic strength. While some sections of the industry were cheerful at the Budget, some expressed disappointment. The Union Budget is an effective instrument to reinvigorate national economy. The Budget has generally generated optimism with regard to fiscal correction and higher GDP growth. The phase of subsidy adjustment has started with the oil sector. It may be possible to discipline the subsidy bill at 1.6 per cent of GDP. The proposal to set up 'National Manufacturing and Investment Zones as proposed by the Commerce Ministry will help increase the share of manufacturing in GDP to 25 per cent from the current 16 per cent and create 100 million jobs in 2025. So far as the textile industry is concerned, the critical issues are availability of raw materials in requisite quantities at right prices and at right times, infusion of sophisticated technology on a continued basis, taxation policy and general economic conditions. The Budget has largely addressed these issues, except excise duty on man-made fibres and man-made fibre textiles. Continuation of TUFS in the 12th Plan, availability of exempted and cenvat routes for all textiles including garment reduction in basic customs duty on certain textile machinery parts from 7.5% to 5% are all welcome and encouraging steps which are a good augury for the textile industry.


Graphic Designer Ms. Kanchan Kale Mr. Vaibhav Gosar


Mr. G. Banerjee - Management & Industrial Consultant

Mr. Shiv Kanodia - Sec. General, Bharat Merchant Chamber


CORPORATE NEWS

Eventful 4th Quarter at Siyaram's

Siyaram launches Prism & Estro under its elegant Italian brand Moretti in India After successfully launching the premium Italian fashion brand Moretti in India, Siyaram Silk Mills Ltd. has added 2 vibrant collections under the same brand for the fashion conscious Indian male. The event was held at The Retreat, Malad, which comprised of a Fashion Show to highlight the latest offerings by Moretti. The collections were strongly appreciated by the dealers and retailers which was evident from the fact that a record booking of over Rs. 7 crores was registered in just 2 days after the launch of the collections. Prism, as the name suggests, is the only collection in the market that boast of 1000+ plain qualities & colours to choose from. Prism is available across one lakh MBO's and is priced at Rs. 600 – 1000 / mt. On the other hand, Estro is a bold collection of fancy dobby & colours in various designs. Estro is available across one lakh MBO's and is priced at Rs. 700 – 1000 /mt. Both the collections are made from 38 – 42 mm length of high value pure Italian cotton yarn – unmatched by any player in the Indian textile market.”

MISTAIR - Style Partners for INKAAR launches POWER PLAY collection Mistair– a division of Siyaram Silk Mills has been associated with Viacom 18 Motion Pictures next 'INKAAR' as a style partner. The association between Mistair and 'Inkaar' was facilitated by Carat Fresh Integrated, an experiential marketing agency of Aegis Media India Group. Present at the event was Mr. Ramesh Poddar, Managing Director and Chairman of Siyaram Silk mills along with the star cast of 'Inkaar'. The highlight of the event was the fashion show that unveiled the Inkaar inspired collection called “POWERPLAY” with the showstopper being none other than Inkaar's lead actress Chitrangada Singh. The entire range of Powerplay is exclusively available at select retail outlets. It is an ideal choice to get that perfect corporate look for conscious youth who opts for stylish formal wear to create an impression in their workplace. Keeping in mind the young age segment that Mistair caters to, Powerplay has been offered in vibrant colours, thereby making it a complete techno-commercial collection. Siyaram Silk Mills had always been a conservative brand which works on principles. This is the first time that they have ventured into a movie association which is their next step towards being accepted as a youth brand . They would look at many such associations in future.

Siyaram's Adds Two Vibrant Collections under Royale Linen After the successful launch of Royale Linen – a linen fabric brand last year, Siyaram's has added 2 vibrant collections, Purito and Vivante, under the same brand for the linen loving fashion conscious Indian male. The event was held on 21st March at InFashion in Goregaon, Mumbai. Mr. Manish Malhotra, renowned Bollywood fashion designer and the brand ambassador for Royale Linen, expressed his joy after inaugurating the new Royale Linen collections – “It is a wonderful feeling being associated with a brand like Royale Linen. It has been offering the purest and most premium linen fabric which transfers the royal appeal to the person wearing it. The new collections launched today are unique, vibrant and still pure ones which I feel are meant for a pro-fashion persona like me. Purito, as the name reflects is the collection of pure plain colours which gives the consumer more than 50 different variations to choose from. The major attraction of Purito is a range of Pure Whites which is available in 125 Lea. Vivante as the name suggests is the unique collection made from 150 Lea presented in various colours. Both the collections are available in 1,00,000 Multi Brand Outlets in country.

Siyaram's launches Wedding Affairs Siyaram Silk Mills Ltd., has recently launched a collection of fabrics that are tailor made for the Indian weddings. The launch was done at the popular InFashion 2013 exhibition through a glittering Fashion Show at Goregaon, Mumbai. The collection consists of fabrics of various premium qualities & colours that are synonymous with the fashion conscious Indian male during wedding celebrations and is named Siyaram's Wedding Affairs. Mr. Ramesh Poddar – Chairman & MD (Siyaram Silk Mills Ltd.) said, “Wedding is not just about the bride and the groom. It is about 2 families coming together for a jovial celebration. Wedding Affairs is a collection of carefully handpicked premium fabrics that are ideal to dress up men for a great Indian wedding. In a nut shell, it is an exclusive ensemble for discerning bridegrooms, this blend of fine fabrics, vibrant colours and rich textures that is ideal for occupying centre stage & making weddings a grand, special affair.” The collection costs from Rs. 400 – Rs. 1000/- and is available across 1,00,000 MBOs in India, apart from the 120 odd exclusive flagship showrooms of Siyaram's Shop. It is supported by strong pan India Print, Outdoor & digital campaigns that are expected to scale up the awareness and visibility of the collection.

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Textile Value Chain | April - June 2013


Raymond, Rajasthan Govt sign MoU to set up the State's first Tailoring Centre Centres to be located at Jaipur, Jodhpur  Raymond to educate, empower and uplift tailoring community, underprivileged youth, minority community and women in the State  State Govt. to provide infrastructure  Follows successful implementation in Bihar last year; the Centre offered placements to first batch of students in March 2013 

Jaipur, April 4, 2013: Raymond Ltd., India's leading manufacturer and retailer of fabrics and garments, today signed a Memorandum of Understanding (MOU) with the Rajasthan Industries Department towards setting up of the innovative Raymond Tailoring Centres in Jaipur and Jodhpur, with the support of Rajasthan Skill & Livelihood Corporation. To be set up in BaisGodown Industrial Area, Jaipur and near the Rotary Circle, Jodhpur in 6000 sq.ft of built-up area each, Raymond Tailoring Centres will impart tailoring skills to underprivileged youth and tailors. This is an ideal example of PublicPrivate-Partnership as Raymond will provide state-of-the-art machinery and trainers for the centres while infrastructure will be provided by the Industries Department and Rajasthan State Livelihood Development Corporation. The Center shall train over 500 students per year in various aspects of tailoring including suit, shirt and trouser making over the next five years. The minimum qualification for admission to the

Raymond Tailoring Center is 8th standard pass. Talking about this association, Mr Sunil Arora, Additional Chief Secretary of Industries Department, Govt of Rajasthan said, “This is a unique opportunity that the Rajasthan Govt. wishes to offer the weaker sections of the society towards building a skill. This, we believe, is an integral part of our plans to empower the people of Rajasthan and help them lead a quality life. It is commendable that leading companies like Raymond are coming forward to participate in developing the minorities and weaker sections of the society. The State Govt. is giving Raymond a built-up infrastructure to run this Tailoring Centre.” Mr. Aniruddha P. Deshmukh, President – Textiles and Retail, Raymond Limited, said, “We are pleased to unveil our plans to launch the Raymond Tailoring Centre in an illustrious state like Rajasthan. The Raymond Tailoring Centre will help the tailoring community acquire professional skills, thus encouraging the youth of the State to find value in pursuing tailoring. Mr Ram Bhatnagar, Vice President – Emerging Businesses, Raymond Limited added, “Considering technological

advancements in the sector, The Raymond Tailoring Centre module includes training candidates on the latest modern machinery and use of best tailoring practices, all at no financial expense to students. Special focus shall be given to encourage women to pursue our programs through reservation for them. We are proud to have the support of the Govt. of Rajasthan for this unique and innovative initiative.” Raymond is taking pioneering steps in developing the ecosystem of the sector. The company believes in the ideology of 'growing together'. It has been the company's endeavour to rejuvenate the fading art of tailoring and in this direction has initiated several steps. The Centre holds the vision of imparting training skills to unemployed, underprivileged youth and existing tailoring community, be their upgrading their current skill sets and encouraging employment and entrepreneurship. This training helps them upgrade their tailored product quality in terms of finish and style, earn better revenue and thereby improve their social and economic status.

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CORPORATE NEWS

Raymond Tailoring Setup in Rajasthan


CORPORATE NEWS

Latest Offerings from the World of INVISTA

 difficult stretches with LYCRA® fibre like Stretch Selvedge Denim, Stretch Jacquard Denim, Super soft high recovery excel stretch denim and many more”.

INVISTA is one of the world's largest integrated producers of polymers and fibres, primarily for nylon, spandex and polyester applications. INVISTA's global businesses deliver exceptional value for customers through technology innovations, market insights and a powerful portfolio of global trademarks including COOLMAX® fabric, CORDURA® fabric, freshFX® fibre, LYCRA® fibre, SUPPLEX® fabric, TACTEL® fibre, and THERMOLITE® fabric. Jan 2013  INVISTA teamed up with ARVIND to build new roads into the high potential global denim market. This association seeks to bring to India the best of technologies from INVISTA together with the denim fabric making expertise of ARVIND, to piece together an eventful journey for the Indian denim market going forward.  LYCRA® brand owner INVISTA announced that it had joined the Sustainable Apparel Coalition (SAC). The SAC is a group representing more than 60 leading apparel and footwear brands, retailers, suppliers, nonprofits and nongovernmental organisations working to reduce the environmental and social impacts of apparel and footwear products around the world. The SAC's main focus is on sustainability in the clothing and footwear industries. Feb 2013  ARVIND launched its latest range of stretch denim fabrics with LYCRA® fibre at t h e m u c h a w a i t e d ' LY C R A ® RENDEZVOUS'. This launch brought together the best of INVISTA's textile innovations together with the denim fabric making expertise of ARVIND. Thus establishing a milestone within the Indian denim market innovation journey. Arvind stretch denim with LYCRA® fibre was launched under two key themes of Denim glam and Pop vintage. Aamir Akhtar, CEO, ARVIND Denim said, “From Arvind, we ensure a stretch that performs and stretch which provides freedom to the designer to create a fashion denim he/she would want to create. We have also mastered extremely

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 LYCRA® brand owner INVISTA announced its collaboration with global sports and lifestyle brand PUMA on a new premium product innovation in performance apparel. PUMA unveiled a range of training tights, shorts and tops this month: PUMA ACTV and PUMA RCVR. Both take performance wear to the next level, by utilizing LYCRA® SPORT fabric in a first-to-market use of both athletic taping and enhanced compression within the garments. PUMA ACTV has been awarded the sports industry 'ISPO Gold Award' quality seal in the Compression Apparel category, at ISPO 2013.

INVISTA offers its COOLMAX® and THERMOLITE® fabric technologies to cater to the performance socks category in the Indian textile and apparel market. INVISTA is working across the value chain from spinners to socks knitters to retail brands and thereby facilitating the development of performance socks in the country. Packed with moisture management technology and comfort, COOLMAX® Socks cater to the endconsumer's need for dry comfort and high performance. Mr. Rohit Pal, Regional Managing Director, Renfro Europe and Asia states, “Renfro Corporation is the largest global hosiery company in the world. Renfro India is the market leader in domestic as well as export market in the country and has a portfolio of 10 licensed brands and exports. Globally Renfro Corporation and locally Renfro India lead technological innovation, selling more than 700 million pairs of socks globally. COOLMAX® Socks offer to the retailers an innovative yarn with several performance characteristics and are being widely used by several licensed brands.” 

March 2013 I N V I S TA ' s c o n c l a v e ' LY C R A ® RENDEZVOUS' at the Taj Palace, New Delhi witnessed leading mills and brands from the textile and apparel industry such as Vardhaman, Banswara Syntex, Arvind Limited - Denim, Mafatlal Denim etc. The curtains opened to an action packed day, full of insightful discussions and product showcase by INVISTA's key customers, launch of its latest innovation LYCRA® T166L fibre, unveiling of ARVIND Stretch Denim

powered by LYCRA® fibre, futuristic panel discussions amongst the best of think tanks from the industry and a scintillating denim fashion show. The new product offering by INVISTA - LYCRA® T166L fibre has been especially designed for robust processing performance in the manufacturing of stretch woven fabrics and possesses good recovery and low growth that are essential requirements for the denim industry. INVISTA also showcased its global denim concept collection for Spring/Summer 2014. The collection encompasses innovative garments highlighting INVISTA's key technologies for denim including TOUGH MAX™ LYCRA® fabric, XFIT LYCRA® fabrics, LYCRA® dualFX® fabrics and COOLMAX® fibre and new under key 3 themes - Fantasy, Reality and Harmony. Featured styles under Fantasy comprise of pearlized coatings, reflective surfaces, coloured weft yarns, prints and tie-dye effects; Reality features simple evergreen denim structures and neon colours; Harmony collection represents performance denims with knit inspired jacquard weaves of cotton and LYCRA® fibre.

April 2013 INVISTA, added on to the Indian textile innovation landscape as it showcased its 3 premier global innovations, LYCRA® dualFX® fabric, COOLMAX® BLACK fibre and THERMOLITE® insulation at the 8th edition of Fibres & Yarns exhibition from April 11 to April 13, 2013 in Mumbai. LYCRA® dualFX® fabric enables creation of super stretch denim with extra comfortable fit that lasts longer. COOLMAX® BLACK fibre technology supports the growing trend for black colour in various apparel segments s p e c i a l l y s o c k s a n d s p o r t s w e a r. THERMOLITE® insulation from INVISTA is a high performance offering to the growing outdoor industry in India.

Textile Value Chain | April - June 2013


CORPORATE NEWS

Arvind’s Joint Venture & Acqusition

Arvind Enters Agreement for Licenses of Hanes and Wonderbra Trademarks in India and acquires Hanes Brands India Operations Arvind Lifestyle Brands, a subsidiary of Arvind Ltd, one of the largest players in the apparel brands and retail space, today announced an agreement to market and sell basic and intimate apparel in India under the Hanes and Wonderbra brands, two of the largest and well-known global apparel brands, under a licensing agreement with U.S. based Hanesbrands Inc. Announcing the licensing agreement, Mr. Sanjay Lalbhai, Chairman & Managing Director of Arvind Limited said, “This transaction is a significant milestone as it signals our entry into the highly lucrative market of branded apparel essentials with lingerie and undergarments. This market segment of branded essentials is estimated at over Rs. 18,000 crore and is expected to grow over 18% from thereon year-on-year. This new market niche, thus, offers a completely distinct and promising business opportunity for us, which will only help further consolidate our position in the Indian market.”

Market Size of Innerwear Market Men's Innerwear

Rs. 7,200 Crs

Organized

60%

Women's Innerwear Rs. 10,800 Crs Unorganized 40% Total

Rs. 18000 Crs CAGR: 18%

Gerald Evans, Co-Chief Operating Officer of HanesBrands said, “We are very excited to enter this licensing agreement in India for two of the strongest global brands with Arvind, a leader in the apparel and retail market. Our Hanes and Wonderbra brands have great growth potential in the lingerie and branded apparel essentials market in India. We are confident that Arvind Lifestyle Brands Ltd., which has one of the largest portfolios of licensed US brands in India, is the right partner for us to aggressively expand growth in India.”

“In the past we have focused on and built a strong position in the Indian menswear, womenswear and kidswear segments, with one of the strongest portfolios of homegrown and acquired global brands. It was only logical then, that we look at the branded apparels segment. The 100-year-old Hanes brand is the No. 1 apparel brand in the United States and offers comfortable, highquality underwear, intimates, casualwear, hosiery and socks. A leader in innovation, Hanes is responsible for bringing to the industry creative ideas like Tagless tees, Comfortsoft waistbands and EZ Sort socks. Arvind plans to increase the current number of Hanes points of sales in India from 5,000 to 15,000 in the next 3 years. In the women's intimates segment world famous Wonderbra brand of intimates which is known to empower women by making them feel sexy and confident, is expected to be a lead brand. The Wonderbra brand offers women a complete line of bras and lingerie.

Arvind Lifestyle Brands Ltd enters into Licensing Agreement with Reliance Brands & Iconix Brand Group JV for Ed Hardy Brand in India Arvind Lifestyle Brands Ltd, recently announced that it has signed a long term licensing agreement with Iconix Lifestyle India Pvt Ltd, a JV between Iconix Brand Group, USA and Reliance Brands Ltd for Ed Hardy. Ed Hardy is the alternative lifestyle fashion brand that celebrates the classic American tattoo as an art form across apparel and accessories. Arvind Lifestyle Brands Limited, will hold the exclusive multi-year license to manufacture and distribute Ed Hardy apparel and accessories throughout India. Ed Hardy is projected to launch in India during Autumn/Winter 2013 with a new global product and price strategy. J Suresh, MD and CEO Arvind Lifestyle Brands Ltd & Arvind Retail Ltd.,

said, “Ed Hardy is a well-known internationally recognized brand and enjoys the status of a 'cult classic' with massive fan following and a unique cutting edge image. We are thrilled to work with Iconix Lifestyle to bring Ed Hardy into India. As the brand rolls out in AW13, we foresee a very successful launch. Ed Hardy will also substantially strengthen our portfolio in the youth segment.” Commenting on the alliance, Darshan Mehta, CEO of Reliance Brands said, “Tattoo art has a timeless appeal and Ed Hardy celebrates its history and beauty by creating dynamic apparel and related lifestyle products. We could not ask for a better partner than Arvind, as they understand this market extremely well and are equally committed to growing

Textile Value Chain | April - June 2013

the Ed Hardy brand in India.” “Tattoo art has a timeless appeal and Ed Hardy celebrates its history and beauty by creating dynamic apparel and related lifestyle products. We could not ask for a better partner than Arvind, as they understand this market extremely well and are equally committed to growing the Ed Hardy brand in India.” equally committed to growing the Ed Hardy brand in India.”

“A life spent making mistakes is not only more honourable, but more useful than a life spent doing nothing.” George Bernard Shaw

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TVC CORNER

The Story behind Reality Bites Whether we like it or not, India has been affected by the global recession. Our current GDP for 2013 is 6.5% which was estimated at 8-9% earlier. In these trying times, Textile Industry receiving/ expecting loans and guarantees from banks and finance institutions has hit rock bottom. Hence it becomes even more imperative that we use our resources ingeniously and with utmost sincerity. Our Reality Bites section for our Anniversary Issue covers the current state of affairs of the textile industry, yarn being one of them. In the next chapter we move to the importance of project planning and management for companies to function at a higher level of functioning. Further more we have interviewed businesses that are directly and indirectly related to Textiles, who spoke about their projects and obstacles they face to complete them in timely fashion. Moving over we interviewed project consultants and project managers to talk about their success stories so that our Industry can use such services for streamlining their projects. We will conclude our reality bites section in our next issue where we will cover credit ratings for companies where the ratings help them to acquire loans. We will also cover banks & finance institutions regarding their policies of giving loans and guarantees to textile industry be it, MSME's, SME's and industrialists. With China's equation changing daily, it's a great opportunity for India to realize the importance of Professional Planning to set up new businesses in India. FEEDBACK FROM INDUSTRY TVC thanks Shri. Vijay Raut, VP of Garware Wall Ropes Limited, for his feedback after reading our issues & stated,

“Please accept my thanks and congratulations on the success of Textile Value Chain with the objectives of Reshaping Textile Industry. While much has been written on textile topics, the magazine has topics that are easy to understand with excellent background information, well documented, explained so clearly, will surely be of great value. Please keep such fine quality printing and good design. Keep up the good work”.

July – Sept 2013 Issue HIGHLIGHT Our Cover Story for next issue is Value Addition. In this super competitive world, what is the USP of your company? What Value do you add to your product/s to be better than your competitor? Alongside, we also have the continuation of our Reality Bites section covering, credit ratings, banks and finance institutions regarding their policies of giving loans and guarantees to textile industry. We invite our readers and our future subscribers to contact us to share their stories regarding loans and guarantees for our feedback column and/ or interviews & articles for our next issue. Also, if you would like to advertise with us be it textile or fashion companies, and banks and financial institutions; please contact info@textilevaluechain.com ; call : 022-21026386

Correction in Issue Name: Vol 1, Issue 4, Visual Merchandising & its Effects on Sales Page no: 40  Not mentioned Second Authors' Name Second Author name along with Dr. Sabita Baruah, DIPTI SALVE Department of Textile Science & Apparel Design, SNDT Women's University  Typing error in Advt. It should read Klassic Fabrics We deeply regret the errors and did not wish to hurt the concerned intentionally.

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Textile Value Chain | April - June 2013


REALITY BITES

Success Story of Yarn & Issues Facing the Textile Industry Tamil Nadu enjoys a place of pride in the textile map of India. Tamil Nadu accounts for 47.5 % of the spinning capacity in the country. Fortunes of the weaving and garmenting industries are inter woven with the spinning industry & spinning industry consciously playing its role as a big brother, which is evident from the fact that despite a growth rate 7% to 9% of the Downstream sectors, yarn has maintained a growth are of 12%. In a Freewheel interview to TEXTILE VALUE CHAIN, Shri S. Dinakaran, Chairman of SIMA (Southern India Mills' Association), unravels the success story of Yarn. Before the interview started with Shri S. Dinakaran, a highly respected stalwart of the textile industry started fielding questions from TVC team; Dr. K. Selveraju, the ebullient Secretary General of SIMA, who is always bubbling with new ideas, reeled of statistical dimensions to the Growth of the Spinning Industry. Dr. Selveraju explained as follows: Though yarn production capacity has been increasing year after year, the growth of yarn consuming segments like handlooms, power looms and knitting have not grown in tandem with the capacity building in yarn production. The handloom segment is shrinking day by day. Of all the segments, spinning sector has been most modernized and earned global reputation of being the reliable supplier of yarns of international quality. It would take some more time for the downstream segments to upgrade technology to use the high quality yarn, which attracts international buyers.

cotton yarn at 455 million kgs while the same was at 3159 million kgs, 811 million kgs and 454 million kg respectively during the previous year. Domestic consumption of all yarn during the year 2012 registered an increase of 7.9 per cent over the previous year's consumption. Domestic consumption of all yarn during the year 2012 stood at 3672 million kgs, while the same was at 3404 million kgs last year. Domestic consumption of cotton yarn during the year stood at 2632 million kgs, 8.9% higher than the previous year's consumption of 2417 million kgs. The country has earned good reputation of supplier of international quality cotton yarn. Registrations for cotton yarn exports during the year 2012 stood at 961 million kgs as against the previous year's registrations of 725 million kgs, the lower quantity is because of the ban prevailed during the initial months of the year 2011. Increased exports during the year had been mainly due to the shift in China's policy of increased imports of cotton yarn, because of cost advantage. Unlike any other textiles manufacturing country, the country has a number of positive factors to its advantage – complete value chain, encouragement for upgrading technology, skilled man power, etc. At this stage, Shri S. Dinakaran entered into the dialogue with TVC...

The number of handlooms in the country had come down drastically to 23.77 lakh looms as per the 3rd National Handloom Census 2009-10, 28% less than the previous census (1995) figure of 32.96 lakh looms. The prime raw material of the Indian Textile Industry continues to be cotton. Cotton consumption by Non-SSI and SSI sectors during the year 2012 registered an increase of 7% over the pervious year. Cotton consumption during the year stood at 232 lakh bales as against 217 lakh bales in the previous year. All yarn production during the year 2012 registered an increase of 6.4% over previous year's production. While the production of cotton yarn registered an increase of 9.2%, production of blended yarn has come down by 1.1% when compared to previous year's production, production of blended yarn remained at the same level of previous year Production of cotton yarn during the year 2012 stood at 3451 million kgs, blended yarn at 802 million kgs and non-

Textile Value Chain | April - June 2013

Shri S. Dinakaran

Chairman SIMA

TVC: TVC is glad to learn that Spinning Industry is about to hit a sixer in 2012-13 by export of cotton yarn of 1000 million + kg. Tell us how the industry could achieve this record-bearing hit? S.D.: The Industry has been subjected to many hurdles such as power shortage, high cost power, recession, etc. Despite all these hitches, if the industry could cross the 1000 million kgs mark, it is mainly because of China factor. China accounts for 30% of India's cotton yarn exports, while Bangladesh accounts for 16%. China imports a substantial amount of cotton yarn from India, as the cost of production in China is

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REALITY BITES

higher due to high cotton prices and labour cost. China might prefer import yarn rather than cotton from countries like India and Pakistan in the years to come. Hence, India has good potential to improve its yarn exports. The biggest employment provider industry had its own problems and obstacles on the way. The industry is largely fragmented and needs integration and balanced growth among various segments to increase the unit value of exports. Even under difficult times spinning industry is capable of exporting around 100 million kgs/ month during the last three months, around 1/3 of production after meeting the domestic demand fully. Cut-throat competition can not be avoided in the globalised era, where every country thrives hard not only to sustain but also to improve their share in the global market. The only way is to improve the productivity and achieve cost advantage. However in this era, not only the cost but also external factors like conditions of the importing countries, fluctuation in forex rates, etc., have their say in product pricing and competitiveness. Volatility in the prices of cotton, cotton yarn or any other commodity is natural and can not be avoided. Imposing unnecessary controls results in adverse effects, which forced the industry into recession because of controls imposed on cotton and cotton yarn in the recent past. The country's textile exports, which had been dependant on the demand from the US and EU markets had been badly affected because of demand compression due to economic recession for the past five years. But thanks to the market diversification initiatives encouraged by the Govt. and the industry could venture into new markets. In the future, the industry is sure to become a significant player not only in cotton yarn but also in other textile products also Spinning industry should be taken out of the clutches of the Hank Yarn Obligation Scheme, which prescribes to produce at least 40% of the cotton yarn delivered to domestic market in hank form and of which 80% should be below 80s count with effect from April 2010. Whereas the industry is pleading to levy a cess if necessary in lieu of the obligation else reduce the obligation percentage to 25%. Since the number of handlooms have considerably decreased and the yarn production has increased substantially; practically today the actual cotton hank yarn consumed by the handlooms would be only around 10% and majority of the working handlooms have shifted silk to earn reasonable wages. Yet another irrelevant policy is Handloom Reservation Act which prevents the power looms to produce around 21 varieties of fabrics. But, it is there only in paper. Majority of such varieties are economically viable only when they are manufactured out of power looms. Hence, this policy should also be scrapped. Second-hand loom imports could be encouraged by reducing / eliminating the import duty since the country does not have sufficient number of loom producers in the country and help the powerloom sector to modernize in a cost effective manner. In turn they would supply cloth to

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downstream sectors who in turn would convert them in to garments and resort to value added exports. The government should encourage all the links of the textile value chain and frame comprehensive policies taking into account all the segments of the industry to become cost effective and also balance the growth of all segments so that the country can earn more forex by way of increasing more value added products. It is a welcoming feature that TUFS and SITP have been extended in the 12th Five Year Plan with a targeted investment of Rs.1,51,000 crores. Now, it is essential to allocate necessary funds for the pending cases, blackout period (June 29, 2010 to April 27, 2011) and also sort out various anomalies to create a level playing field and sustain the financial viability of the affected units. TVC: As we understand there were many obstacles in the way. Could you throw light on the same? S.D.:The Industry is often subjected to recession due to high volatility in the raw cotton prices. Consequent to the removal of cotton from Essential Commodities Act from February 2007, the multinational cotton traders flooded with cheap funds started dominating the Indian cotton economy. They procure large volume of cotton during the peak season (majority of the cotton arrives the market only during December to March), hoard the cotton and speculate the prices. Unfortunately, the various Govt. polices relating to the white fibre like offering export incentive with retrospective effect, CCI supplying huge volume of cotton with six months credit facility with bulk discount, export large volume of cotton during the peak season and creating artificial scarcity, low stock-to-use ratio (15% to 20% cotton reserve as against the global average of 40% to 75%), etc., are not allowing the industry to achieve a sustained growth. The industry has been pleading the government to offer special working capital assistance (at 7% interest rate, 9 months credit facility and reduction of margin money from 25% to 10%) to have a level playing field with the multinational cotton traders who not only have enormous funds but also have forward cover facility to protect their trade. This package would also enable the farmers to get reasonable price for their produce. But the Govt. is yet to consider this proposal. The industry faced its worst crisis during 2010-11 due to unprecedented volatility in cotton and yarn prices which led many textile companies to erode its working capital. With continued and consistent persuasion made by us, the Govt. announced a debt restructuring package of Rs.35,000 crores in May 2012. However, banks are stepping back in certain cases and we appeal them to consider all the applications favourably. TUFS was temporarily suspended during the period between 29.6.2010 and 27.4.2011. Expecting and believing that the TUFS benefit would reach them, many textile mills during this period invested a lot. This scheme was suspended without any prior notice and many projects were rejected because of a delay of few hours. Since the Textile

Textile Value Chain | April - June 2013


REALITY BITES

Machinery particularly the spinning machinery delivery schedule during this period was more than three years and therefore, the textile mills had to plan the projects in advance and could not stop in between. Therefore, we expect the Finance Ministry and Cabinet Committee to consider this genuine demand. Similarly, the Textile Ministry is denying TUFS benefits to the units seeking debt restructuring package. In such cases, we expect the Ministry to extend the TUFS benefits under the pending cases without further delay to ease out their financial position and remain healthy. Yet another problem the industry facing is the sudden impact created by hike in HSD oil prices. Recently, the Govt. has hiked Rs.9.25/ litre of HSD oil for bulk purchases which have a net impact of Rs.11.00/ litre including taxes and levies. So the industrial units in the power starving States like Andhra Pradesh and Tamil Nadu which heavily depend on diesel generators for power generation have to bear the brunt. What the industry expects from the government is that the prices should be rolled, exemption from VAT on HSD oil, which would help the textile mills to reduce their burden. TVC: What is your planning for future and what help do you expect from the authorities in that regard? S.D.: If the government avoids short sighted and lopsided polices and announce a comprehensive textile policy, the Indian textile industry has a tremendous potential to grow. The government should facilitate getting all the inputs at internationally competitive rates. The transaction cost should be reduced. The GST should be implemented at the earliest without any break or exemptions across the value chain. Garment sector should become cost effective by emphasizing on modernizing weaving and processing and expanding the technical textile segment. Availability of quality and constant supply of power at an internationally competitive rate is very essential to remain competitive. Timely disbursement of fiscal and nonfiscal support to the industry without turns and twists in the policies already announced, as these would affect the industries expansion and modernization plans adversely. TVC: Yarn has become competitive in China which is reputed for giving cut-throat competition in textiles. How could the spinning industry increase export to China and China shifting its yarn purchases from Pakistan to India? S.D.: We understand that the labour cost has become expensive in China. Hence, China prefers to import all labour intensive textile products from countries like India and Pakistan. Currently, it imports large volume of coarse count yarns from these countries, more from Pakistan. The enquiries for coarser variety cotton fabric are also good. We need to quickly upgrade the weaving technology to capture the international market.

Textile Value Chain | April - June 2013

TVC: What would you suggest to make cotton yarns available to power looms and knitters at reasonably staple prices, despite volatility in the cotton market? S.D.: Raw material accounts for 65% of the yarn cost. Unless the cotton price is stable, it is impossible to bring stability in the yarn prices. If we look at the cotton and yarn prices prevailed during the years 2003-2008, they were stable. The problem started only when the multinational cotton traders entered the Indian cotton market. Various trader friendly policies of the Govt. (like high import duty during 2008, abrupt increase in MSP, 5% export incentive with retrospective effect, bulk discount and liberal credit facility offered by CCI, holding of stocks by CCI, exporting the entire earmarked quantity of cotton in a short span, etc) enabled the trade to hoard cotton, create artificial scarcity and speculate on the prices. Hence, during the last five cotton seasons, there is no stability in the cotton and yarn prices. Tamil Nadu which accounts 47.5% of the spinning capacity has been facing acute power shortage. Hence, uncertainty in power supply, heavy under utilization of machines and man power, abrupt increase in captive power generation cost, steady increase in labour cost, etc., make the yarn prices unstable. TVC: As a Textile Analyst, we read a lot about the USA and Europe on the threshold of achieving a turnaround. Still there is despondency in the downstream segments of industry. Kindly comment. S.D.: I do agree that there is a downward trend for the demand for textile products in USA and EU countries. But this will not be so for long time and I expect that the situation would improve shortly. Moreover, we need to concentrate on markets in East and far Eastern countries for our products. We are aware of the problems of downstream segments especially due to the closure of processing units in Tirupur and nearby areas following the Honourable High Court orders. To overcome this problem, the processing units should shift their base to seashore, treat the effluents and let it into the marine to remain cost effective. This is only a longterm option available before the processing units. TVC: Do you think success story of yarn will induce Govt. to treat spinning on par with weaving, processing etc., for the purpose of benefits under TUFS. S.D.: Indian spinning sector has proved its competitiveness in the global trade and the same should be sustained in future for which the Govt. should encourage the spinning but at the same time encourage the other sectors also to upgrade their technology and capacity expansion to have an edge in the global cut throat competition and country's share in the global textile trade. The Govt. has already decided to give more thrust on strengthening the weaving and processing sectors in the 12th Five Year Plan and is expected to announce attractive schemes under TUFS and SITP.

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REALITY BITES

Project Planning Mr. Avinash Mayekar

1) Pre-designing, 2) Project Management and 3) Construction Management

MD & CEO, Suvin Advisors Pvt. Ltd.

There's a well-said quote by Benjamin Franklin “By failing to prepare, you are preparing to fail”. Planning is the most crucial aspect for a successful project. These days, the investors planning to invest in a manufacturing unit are facing huge problems of project delay or failures due to various reasons like delayed disbursement of funds by financial institutions, inappropriate project management team, inadequate knowledge of project execution, etc. For a project to be devoid of cost overruns, schedule delays and poor quality execution, the investor needs to execute the project with effective project management methodology. Project Management: Project management is defined as the application of knowledge, skills, tools and techniques to project activities to meet project requirements and organizing and managing resources so the project is completed within defined scope, quality, time and cost constraints. It involves planning, organizing, and managing resources to bring about the successful completion of the project. Following is the framework that is generally followed for successful project management :

Initiate

Prepare

Execute & Control

Close

Track & Control

Start up

Defination/ Scope/ Requirement

Planning & Resource Allocation

• Scope Manegement • Workplan Manegement • Resource Management ( Time, Cost, People) • Deliverable Management • Quality Management • Transition Management • Vendor Management

Reporting

Completion & Assessments

Review

Risk & Issue Management Communication Manegement

The primary challenge of project management is to achieve all of the project goals and objectives while honoring the preconceived project constraints. Typical constraints are scope, time, and budget. The secondary—and more ambitious—challenge is to optimize the allocation and integration of inputs necessary to meet pre-defined objectives. In the Project execution stage, multiple agencies work together on parallel activities. The challenge lies in constant monitoring of each activity, quality check and taking midcourse correction if required, enabling an efficient and smooth implementation of the project. There are 3 major steps to be followed for project management :

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1) Pre-designing: In pre-designing, various activities like Site plan, Master Planning, Drawings for Statutory Approvals, Utilities Data Collection, Design Conference, Basic Data Fixation etc. is taken care of. Preparation of Master plan is done by exploring the various possibilities and aspects for the suitable development of the site, from the point of view of Industrial planning and architectural design to be shown in a site plan, considering effective use of climatology and natural site gradients & overall planning by giving due considerations to man, material and management. The built-up area is fixed by considering various units, utility area, ancillary buildings, power plant etc. The prime focus should be given on a “Design conference” where all the stakeholders such as the client, Consultants and suppliers contribute to finalize all variables of the project after considering all other options. This conference needs to be organized to arrive at building utility and machinery details from all suppliers & their recommendations and to freeze all design parameters. As per approved data of individual units and master plan during design conference, a basic data fixation report should be prepared, which would be referred to as a bible and would forms the basis for further designing & planning, covering built-up area, statement of utility requirement for machinery, building specifications, utility requirement and equipment specifications, design conditions, time schedule and budget. 2) Project Management: Project management revolves around the objectives of scheduling, effectively estimating costs, working out cost benefit analysis, preparing file note with single line diagram, preparation & evaluation of tender, prequalifying & approving contractors, giving recommendations and preparation & submission of design & working drawings. The geo-technical analysis of the proposed site needs to be carried out with particular regard to size, surface, shape and level conditions, load bearing capacity of subsoil and surface water conditions, water supply, yield of wells, interpretation of water analysis, drainage, disposal of rain water & waste water and industrial effluent, electric power connections, climate and meteorological data, rainfall, velocity & direction of prevailing winds, municipal/ local rules & regulations etc. If, in the course of investigation regarding water supply, load bearing capacity of sub-soil and sub-soil water conditions, it is found necessary that civil work like excavation pits, boreholes or load tests has to be carried out, the same will be carried out. If an up–to–date contour plan and survey map is not available it should be arranged accordingly. Based on geotechnical analysis of the site and master plan prepared, architectural drawings should be prepared for infrastructure, production buildings and ancillary buildings.

Textile Value Chain | April - June 2013


REALITY BITES

Architectural drawings include plans, sections, elevation, doors & window schedule for each building and necessary details for implementation. Structural design and detailed drawings includes static calculations of reinforced concrete or steel construction for buildings, preparation of structural GA drawings, preparation of RCC designing and drawings. Utility systems need to be effectively designed to arrive at an appropriate system, detailed design, scheme drawings and layout drawings. Following is the sequence of activities to be followed for Project Management : Testing of soil & Conducting toppgraphical Survey

Finalization of building Specifications

Cost Estimation & Value Engineering

Preparation of tender drawings

Issuing of work order

Finalizing Tenders

Floating & evaluation of tenders

Preparation of tenders

Preparation of good for construction Drawings

Issuing of good for construction drawings

Site visit & coordination

Submission of montly progress report

Preparation of as-built drawing

Certification of RA Bills

Preparation of final project report

The work needs to be closely supervised to ensure timely completion as well as to ensure quality. Schedule of work for each contract should be monitored. Adequate resource should be deployed at site. Monthly progress report should be prepared covering costs, critical decisions and progress achieved by collecting site reports for material, labour, work progress. The list of drawings issued and diary of important events should be maintained. 3) Construction Management: Construction management revolves around the objectives of resource planning, micro scheduling & orientation, site supervision, risk assessment and management, safety & security measures, material control, quality control, cost control and successful implementation. Following are the activities to be followed for Construction Management: Checking of site & site condition

Analysis & monitoring of master schedule

Analysis of Resources

Day to day site Supervision

Checking of quality of material Workmanship

Coordination at site

Implementation of safety practices

Checking of & verification of measurements of contractor bills

Preparation of final report

Major Reasons for Project Failures/Delay: Project, if not planned properly, can fail or get delayed indefinitely.

Textile Value Chain | April - June 2013

Some of the major reasons for project failures or delay in execution are inadequate project planning, poor scheduling of projects leading to delays in implementation, misallocation of funds, lack of accountability and transparency, Lack of defined, clear, or concise requirements, bureaucracy in decision-making, weak monitoring systems, lack of team work etc. These reasons can be overcome by improved project management that would resolve most of the issues faced by the project investor in implementation of the project. Need of Improved Project Management: Better project management leads to better predictability leading to commitments that can be met. Lower cost can be achieved through reduced rework, better resource management and better planning. Quality is improved through proper quality planning and control. Project management aids in better visibility into project health and state leading to timely intervention and also helps in better handling of risks reducing the chances of failure/delay. All this put together leads to higher project investor satisfaction and self and organization improvement. This can be achieved by appointing a proficient project management team within the organization or a professional project management consultant outside the organization. Importance of Project Management Consultant: A project management consultant has practical experience of setting up various projects and complete knowledge of the project execution along with the intricacies involved while implementing a project. The consultant is cognizant of the systematic process for managing a project and is able to answer crucial queries like the goal of the project, the need for the project, the beneficiaries of the project, probable obstacles in the project execution etc. With effective communication and good interpersonal skills, a project management consultant can efficiently co-ordinate between various vendors and the project investor delivering the project within the prescribed time schedule and with optimum budget. Implementing a project within prescribed schedule, with insignificant deviations from budget and maintaining appropriate quality enable the project investor in saving around 5-10% of the project cost. Summary: To summarize, project planning is the key for executing any project within cost estimates, timely execution and avoiding repetitive work and delays. The precision needs to be taken while planning, designing and implementing any project. As there are various independent factors involved in project management, a right and omniscient consulting firm having relevant team with knowledge of project execution should be appointed which can assist in giving most favourable end-to-end solutions for any project.

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REALITY BITES

Interview - Sel GroupManufacturing Co. Ltd. uninterrupted and quality power supply, the steam generated by the plant is used for processing in terry towel division.

Mr. Navneet Gupta Executive Director & C.F.O, SEL Manufacturing Co> Ltd.

SEL is a leading vertically integrated textile conglomerate operating in various textile subsegments. It has facilities right from spinning & knitting, processing of yarns and fabric, to the value added products viz. terry towels and ready-made garments. SEL Manufacturing Company Limited has been ranked as the 10th largest in analysis of the Europe's top 100 Yarn & Thread Suppliers. SEL is driven by the vision of building a sustainable, profitable, growth oriented and socially responsible corporate through strong and effective systems, committed teams and satisfied stakeholders. Today SEL group is recognised as a “System Oriented Management Supported” corporate. TVC interviewed the dynamic, insightful and brilliant Mr. Navneet Gupta, Executive Director & C.F.O of SEL Group… TVC: SEL presently manufactures an entire range of textile products from yarn, knits, fabrics, readymade garments and terry Towels. What was the vision that made you enter this entire sector? NG: The group started as a garment manufacturer with a vision to create a niche market for itself with quality products. We believe in creating the best quality garments, procured from the best quality of raw material (i.e. yarn and fabric). Secondly, the size of textile markets is growing rapidly worldwide. Today both international & domestic buyers want to deal with people where they can be assured of the supplies. In case of value added products the supply contracts are for long terms and only the integrated players can be reliable sources for long term supplies as they are selfsufficient when it comes to raw material. Thirdly, the integration gives the group cost effectiveness. Today, when yarn is moved from spinning division to knitting/towel division or fabric is moved from knitting division to garmenting division, the company saves on packing, transportation, commission etc., which minimizes the risk of losses in case of price fluctuations. Therefore, reliability of supplies, assurance of quality and cost effectiveness promoted the group to enter the entire value chain. To complement the chain, the group has also set up a 22 MW Captive Power Plant which is bio-mass based and uses rice husk as a fuel. Besides giving

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TVC: What is your current Production capacity of each? NG: The Company has been into continuous expansion mode since its inception. The current and upcoming capacities are summarized below: Category

Unit

Existing

Upcoming

Total

Ring Spinning

Spindles

6,13,872

4,79,616

10,93,488

Open-end Spinning

Rotors

10,680

2,400

13,080

Yarn Processing

TPA

9,000

--

9,000

Knitted fabric

TPA

43,050

36,000

79,050

Fabric Processing

TPA

6,900

--

6,900

Terry Towel

TPA

21,600

12,600

34,200

Denim fabric

million metres

--

40

40

--

8

8

20

--

20

22

--

22

per annum Denim garments

million pieces per annum

Ready-made

million pieces

garments

per annum

Captive Power

MW

Generation

TVC: Which markets does SEL group supply? NG: The value added products of the Company i.e. knitted garments and terry towels are 100% exports, while the yarn sales constitute of about 30% of exports. SEL exports to about 80 countries including entire Latin America, Middle East, Europe, USA and some African & Asian Countries. TVC: What is the current market size and share of SEL? NG: Textile is a very vast field and includes hosiery, apparels, home textiles, cottons, silks woollens, hand-crafted textiles, jute & coir, technical textiles, synthetics, etc. The total Indian textile market would be around 90 billion USD out of which about 60 billion USD is for domestic consumption while the balance is exports. Similarly, the global market for textiles would be around 650 billion USD. SEL is mainly into yarn, fabric and made-ups like knitted garments and terry towels. At present, the group is not into retail segment and caters only to industrial consumers and big retail chains. Considering the overall huge range of products in textiles, the market share of SEL would not be very big. But the thrust and focus of the group is to be one of top integrated players of textile market. TVC: Does SEL have any future plans for expansion or diversification? NG: SEL has been in expansion mode since its inception. Recently, we have set up a spinning project in Madhya Pradesh with installed capacity of about 4.00 lac spindles which is the largest spinning capacity under one roof in India. We have expanded the facilities in MP by adding another

Textile Value Chain | April - June 2013


REALITY BITES

2.50 lac spindles. In addition to that, the group is also setting up an integrated textile project in Punjab which would have about 2.00 lac spindles and an annual capacity to manufacture 40 million meters of denim fabric and 8 million pieces of denim garments. Besides that, the knitting and garmenting capacities of SEL keeps on adding up. Also, SEL is constantly on the look out for acquisition opportunities wherein we have had about 6 acquisitions in the past 3 years, which have added to the capacities of the Company. TVC: What is the general approach followed by your company while putting up a project? NG: Raw material proximity is one of the factors that are studied while conceiving a project. Land availability and land prices also play an important role in deciding the project. Our new MP spinning project, is centrally located and in a cotton growing belt. It is also close to the ports and land is available at reasonable prices. Our spinning project in Dist. Muktsar, Punjab was again set-up because it is a cotton belt and Govt. of Punjab has a special thrust for development of that region as a textile hub. TVC: For execution of projects, does SEL take assistance from outside consultants or agencies? NG: Over a period of time the Company has developed a pool of professionals who take care of the project execution. The team includes people who are experienced in their respective fields like civil construction, engineering, government approvals etc. Besides, there are also fresh faces which give additional energy to the team. The team is capable of handling big size projects and implemented the spinning project in MP in the most efficient and timely manner. However, in case a need arises, the group is not averse in taking assistance from outside consultants. TVC: What are the major infrastructural obstacles? NG: Power is a major issue. Power consists of about 18% to 20% of the total manufacturing cost. Availability of power and also the quality are the areas where we have to really look into. Industries require uninterrupted power supply at affordable prices to be really competitive at international level. Apart from this, land acquisition is another area of concern. We need to have a clear policy on land acquisitions. TVC: Do you face obstacles while taking loan from financial institutions? Is it easy to get Finance from them? NG: Textile sector may not be a priority area for the lending institutions. One of the reasons for the same can be the cyclical nature of some of the products and lower level of profit margins. However, the textile industry has a track record of more than a century. Further, with the growing levels of integration and increasing size of the units the risk factors are being taken care of. As the manufacturing capacities grow in size and the industry moves towards more and more of integration, the shock absorbing capacities are also increasing. Last one year has been very good for textile industry and same is likely to continue for at

Textile Value Chain | April - June 2013

least next 4-5 years. With this the confidence level of the banks is also increasing. Luckily, with continuous profit record and meeting the financial obligations on time, we have never faced any kind of obstacles in getting finance from the banks. TVC: Is SEL planning investments outside India? NG: With increasing purchasing power and young population, the Indian domestic textile market is growing at a rapid pace. Further, many manufacturing facilities abroad are being shut down due to high labour and manufacturing costs, environmental issues, etc. About 60% of the global production base is in Asian countries. Today everyone wants to setup base in India. As such, at present the group is concentrating on building capacities in India. TVC: What are the major difficulties SEL faces while dealing with Govt.? NG: The major issues are with complexity of various approvals required for setting up and running the projects. We should have a single window clearance system where on a single application all the necessary approvals are granted. This would save plenty of time & effort which can be rightly used for setting up of the project. TVC: How would you like the Govt. to assist you to boost the market of your products? NG: The Indian Govt. has promoted a number of export promotion policies for the Textile sector. It has also allowed 100% FDI in textiles under the automatic route. Due to recent Govt. policies, the Indian textiles industry is in a stronger position than it was in the last six decades. The industry which was growing at 3-4% has now accelerated to an annual growth rate of 8-9% in value terms. Additionally, initiatives like TUFS, SITP's and ISDS's are helping to promote the growth of textiles industry in India. Apart from this, some State Governments like Gujarat, M.P. & Maharashtra have also given interest subsidy & other benefits for setting up of projects. These measures go a long way in reducing the operational costs and making the Indian textiles industry more competitive in global markets. The only thing required is stability and certainty of policies. TUFS blackout period had discouraged the industry and created very negative impact in the minds of entrepreneurs due to uncertainty on Govt. regulations. Decisions should be taken and policies should be framed in the interest of the Country and not in the interest of various lobbies like ginners, spinners, weavers, garmenters, etc.

“ There are children's who are working in textile business in asia who would be prostitute on the streets if they did not have those jobs

�

Lawrence Summers

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www.raj-rajendra.com


Mr. Vitthal Jadhav Director, Pratibha Constructions


  

20- 50 % Faster Projects 200+ Organizations worldwide including Trident, L&T, Nakoda, Siemens, TATA STEEL Boeing and ABB $3.5 Billion impact on Cash and profits. ADVT.

“ WE WERE ABLE TO COMPLETE A YARN PLANT COMMISSIONING IN 14 MONTHS COMPARED TO 21 MONTHS DONE PREVIOSLY” Mr. Rajinder Gupta, Managing Director, Trident Group

3%

Only of infrasturcture projects in India finished on time and within budget. Economics Department Delhi Board of Economics


ADVT.


Passion, Commitment and Excellence If there is one company in India in the space of textile engineering that can claim to be a 'single window solution provider' across the textile value chain, it is only A.T.E.!

Mr. Anuj Bhagwati Managing Director A.T.E. Group

From a humble beginning over 7 decades ago, A.T.E. has grown organically and inorganically-occupying a centre stage in the Indian textile industry, while firmly establishing itself in other areas of business such as clean technology, print and packing solutions and machine-to-machine solutions. A.T.E. group now consists of 9 companies, which include manufacturing units, a project execution company, and an industrial sale, distribution and service company with a nationwide network as well as subsidiary in Dhaka, Bangladesh. A.T.E. is a leader in textile engineering. Its manufacturing units in the textile engineering field include its own unit for high precision spinning machinery components, under the

Mr. G. V. Aras Director Textile Engineering Group

home textiles, synthetics, carpets, a complete range in processing, lab equipment, utilities which include ETPs (from its own group company), and air engineering, comprising humidification and also comfort conditioning (from its own group company). It also created separate divisions for accessories and retrofits to drive this business with focus to promote the use of genuine spares, accessories and retrofits to help customers to optimize their machine performance and to conserve resources. ATEEPL is also viewed as a consulting resource by its customers, in view of its deeply embedded knowledge in textile processes. Certified under ISO 9001:2008 for its best quality practices, the company's 300+ team includes around 200 professionals for sales, marketing and services, out of which over 2/3rd are dedicated to its textile engineering business alone. The company has eleven branches all across India (located in Ahmedabad, Bengaluru, Chennai, Coimbatore, Chandigarh, Hyderabad, Kolkata, Mumbai, New Delhi, Pune and Surat) and also has residential representatives at key textile centres like Tirupur, Nagpur, etc. Here is a quick overview of ATEEPL's textile engineering businesses: Spinning machinery and accessories: ATEEPL has two separate divisions to handle the business of spinning machinery and accessories. ATEEPL commands a significant presence in the Indian spinning industry representing global German majors:Truetzschler, Zinser Textile Systems (ZTS),Oerlikon

Mr. Laxmikant Rathi Business Head Spinning Accessories Div.


CORPORATE PROFILE

portfolio includes the high precision TeraSpin spinning machinery components such as spindles and inserts, top arms, etc. (manufactured by A.T.E. based on SKF technology), Truetzschler card clothing, original spares for various spinning machinery, Inspiron flyers, Inarco cots and aprons etc. The portfolio also includes slub, multi-twist, multi-count, core spun devices from SKAAT, which help in value addition in spinning yarn and MAG textile testing equipment for accurate testing of fibre to garments. ATEEPL also represents Bajaj Steel, the largest ginning machinery manufacturer in the world, for the complete range of ginning and bailing machines.

industry and its name is synonymous with warp knitting. Lace, tricot and raschel are the main variants of warp knitting machines. Karl Mayer has sold over 200 tricot knitting and special application warp knitting machines for technical textiles such as home textiles, automotive textiles, sports textiles, outerwear, shoe fabrics, agro textiles, geo-composites, flex banner, coating substrates, geo textiles and medical textiles. Notable customers in this line of business are, BMD, Ginza Industries, Haria Enterprises, Techfab India, Garware Wall Ropes and others. Warp Preparation: Since 2008 Karl Mayer has combined the synergies of Karl Mayer, Benninger, Sucker and Griffin to offer one stop solutions for warp preparation for textiles, technical textiles and indigo denims. Karl Mayer enjoys a significant market share with a population of more than 850 installations across India with almost all leading mills and corporate weaving houses. ATEEPL has promoted Karl Mayer strongly with major installations at Alok, Bombay Rayon and Fashion, Welspun, Mandhana, Arvind, Raymond, Sri Shanmugavel, VT Mills, Loyal Textiles, Himatsingka, Premier, NSL, Nahar, Vardhman, etc.

geotextiles, filtrations and roofings; Enka Tecnica (Germany) for spinnerets and jet strips; Wenzhou Seek Benefit Machinery (China) for spun bond and SMS lines; Luwa for air handling systems; Ramisch Guarneri (Italy) for calendering systems; Mahlo (Germany) for GSM monitoring and moisture measurement systems; Fong's for bleaching vessels; Monforts (Germany) for coating systems and Zeller+Gmelin, (Germany) for warp and weft knitting oils. A.T.E. has also recently tied-up with Tayu Machine (Xiamen, China), which provides a full range of machines to suit every need, in the circular knitting sector. The range encompasses single jersey and double jersey machines. Tayu also manufactures alloy steel cylinders which add to the metallurgical strength, thus assisting in effective dissipation of heat between the knitting elements. Carpet and Synthetic Machinery: The carpet business has tremendous potential, driven by a rapidly growing demand for interior dĂŠcor both by business establishments as well as households. With a low per capita consumption of carpets in India, as well as a rapid growth rate for consumption, carpet is by far, one of the most unexplored products in manufactured textile applications in India. Backed by its domain knowledge in textile applications, A.T.E. has recently entered into the carpet machinery business, to help the Indian carpet industry to tap the growing market for carpets. ATEEPL has tied-up with a number of leading manufacturers of carpet machinery and equipment around the world, such as: Zimmer, Austria (carpet printing ChromoJET and back-coating lines), Cobble Blackburn, U.K. (machine-tufting), Crabtree, U.K. (carpet looms, belting looms for producing specialized industrial fabrics for conveying), EFAB GmbH for robo-tufting, Ornek Makine, Turkey (heat setting) and Yamuna, India (for indigenous back coating lines). ATEEPL has also understood that it needs to take a strong position in the synthetic textile sector too which shows very good promise of sustainability and growth. Of course, it is already into the warp knitting and beam preparation sector with Karl Mayer equipment, but the need was felt to enter into the highly competitive as well as highly capital intensive sectors of POY/FDY lines, PET/PP staple fibre lines, Continuous Polymerisation (CP) lines, monofilament lines and tape manufacturing lines, to name a few. ATEEPL has a very strong line-up of principals in this sector as well, comprising of world leaders such as Truetzschler, CTMTC, Huitong and others.

Knitting & Non Wovens: ATEEPL has been present in the non-woven segment since the 1990s and represents in India a rich technology basket with a large number of world class m a n u f a c t u r e r s . AT E E P L ' s principals in the technical textiles segment include Truetzschler Non-wovens (Germany) for spun lace, thermo chemical

Processing Machinery and Accessories: ATEEPL provides a most-complete technologypackage for textile processing for both woven and knits from global leaders. Principals handled by ATEEPL in the processing Mr. Avinash Naik segment include Monforts for Business Head Processing stenters for wovens, knits & Accessories & Customer technical textiles, CDR (E Control Service Group technology) & MXL ranges; Fong's

Mr Sunil Bhatnagar Business Head - Spinning & Fabric Forming Div.

Mr. Vikas Sharan Business Head - Circular Knitting, Non-wovens, Synthetics & Carpets Div.

28

Fabric Forming : ATEEPL's Fa b r i c Fo r m i n g D i v i s i o n represents Karl Mayer, Germany, for warp knitting and weaving preparation equipment. Warp Knitting: ATEEPL has been r e p r e s e n t i n g Ka r l M a y e r, Germany, for over 5 decades. Karl Mayer has a very high reputation in the Indian textile

Textile Value Chain | April - June 2013


for package & soft flow dyeing machines; Fong's Europe (Goller) for continuous bleaching and mercerizing ranges for wovens and knits; Fong's Europe (THEN) for air flow dyeing machines; Osthoff-Senge of Germany for singeing machine for wovens & knit fabrics; Mahlo for weft straighteners for wovens, knits & denim fabrics with modular process control systems; Stalam of Italy for RF dryers for loose stock, hanks, tops & hydro extractor for yarn packages; Eliar Elektromekanik of Turkey for weighing & dispensing systems; Corino of Italy for balloon padders & wet slit opener; A.T.E. Envirotech for water & waste water treatment plants and complete packages for zero liquid discharge system for textile effluents, Ramisch Guarneri of Italy for calendars for textiles and technical textiles; Montimac of Italy for grey preparation lines; Salvade of Italy for loopsteamers and Zimmer of Austria for digital printing machines; and now LACOM for coating and lamination. As one could see, this line-up clearly reflects A.T.E.'s focus on not only the main-stream textile process lines, but special value adding process as well as post-process activities including crucial waste disposal and pollution control areas. ATEEPL has a dedicated set-up for customer support with 30+ engineers/technologists to provide post-sales services for a host of state-of-the art textile processing machines of its local and foreign principals. This team offers a bouquet of services such as erection and commissioning, trouble shooting, annual service contracts, performance optimization, technological assistance, spare parts handling & training. With a highly competent and experienced service team, A.T.E. is committed to ensure uninterrupted productivity and quality, giving its customers a sustainable competitive advantage. Services of A.T.E. engineers are sought even by international textile machinery companies for various kinds of services for their installations supplied all around the world, which is an eloquent testimony to the c o m p e t e n c y o f A . T. E . ' s s e r v i c e t e a m . As in the case of spinning, ATEEPL has also created a separate business division to promote the business for spares, accessories and retrofits for processing machinery. Besides promoting the use of genuine spares for optimizing machine performance, the accessories and retrofits brought by this division is designed to save cost, improve productivity and improve quality at substantially low cost of investments and with fastest ROI.

Mr. S Rajendran Business Head Processing Div.

frame trolleys, box trolleys, batch rotation station and hydraulic spindle batchers); Valence (antistatic units); MAG

Mr. Kanhaiya Prasad Business Head - Garments & Home Textiles Div.

Garments Machinery: ATEEPL has forayed into garment machinery two years back and is fast making its mark in the garment making industry with the latest ecofriendly automation solutions f r o m r e n o w n e d manufacturers around the world. ATEEPL's offering will certainly save man-hours, reduce energy consumption

FORM IV


Birla Spundyed Viscose Fibre – An Eco Concept for Future Textiles

Sushil Hada, Ravinder Tuteja, Ganesh Jadhav, Praveen Kumar & Alkesh Darji, TRADC, Birla Cellulose, Birladham, Kharach, Gujarat.

Parameters Denier X Cut Length Shade No. Denier OPU % Conditioned tenacity (Gms/Den) Conditioned elongation%

Pigment & not Dyes

Fig. A

Stock dyed fibre / piece dyeing

Fabric / garment printing

Spun dyed Viscose

Values 1.3d x38 mm 9676 1.3 D 0.35 -0.38 2.58 – 2.61 18 – 20%


FIBRE FOCUS

RKM

Total IPI/Km 100 80 60 40 20 0

17 16 15 14 13 12 Uster 5%

Uster 25%

Uster 50%

Spun Dyed Viscose

Uster 5%

Uster 25%

Uster 50%

Spun Dyed Viscose

As per the Table no. 2 & the graphs, spun dyed Viscose yarn is showing results comparable to the Uster 25% norms for 30s normal Viscose yarn. All the testing done at controlled lab conditions of 65% RH with 27±2°c temperature.

Below mentioned table shows the benefits comparison of spun dyed viscose fabrics over the piece dyed fabrics. As the Spun dyed are manufactured by injecting pigments at the fibre spinning stage, the fastness ratings for the Spun dyed fabrics are excellent as compared to the piece dyed fabrics.

Fabric Quality Reports –

Colour fading Values –

Test Fastness To Wash Change in shade Staining on Cotton Fastness to Rubbing Dry Wet

Table no. 3

Test Method

Spun Dyed Piece Dyed Viscose Viscose

5 5

4 4

5 4-5

3-4 3

IS 764 -1979 IS 766 - 1988

Wash Sample

Original After 1 wash After 3 Wash After 5 Wash After 10 Wash

Table no. 4

Spun Dyed Viscose Piece Dyed Viscose

5 5 5 5 5

5 4-5 4 3-4 3

As per the above mentioned table, spun dyed Viscose shows no colour fading even after repetitive washings. Value 5 denotes no colour fading & solid appearance where as 1 denotes poor colour fading & fuzzy appearance. Process savings in Spundyed Viscose Knits -


M. D. Teli


Fig.2 : Comments of Customers on Fuzziness of Yarns

As per 70% of the customers, yarn fuzziness is a common problem. It is more severe in case of cottons as compared to

A. Bleeding of Embroidery Yarns:


Usage Cycles

2-3

Cotton Woven % of people given response 63.67 23.3 6.67 6.67

Grading 0.5 1 2 2.5

Synthetic

Knitted % of people given response 16.67 26.6 56.67 10

Woven Grading % of people given response 30 2 63.3 2.5 6.67 3 3.3 3.5

Grading 1 2 2.5 3

Knitted % of people given response 10 23.3 63.67 3.3

Grading 1.5 2 2.5 5

3-5

6.67 13.33 56.6 20 3.33

1 1.5 2 2.5 3

3.3 23.3 66.67 66.67

1 2 3 3.5

13.33 26.6 60

3 3.5 4

16.6 63.67 20

3.5 4 4.5

5-7

13.3 10 26.6 53.33

2 2.5 3 4

10 23.3 63.67 3.3

3 4 4.5 5

3.3 6.67 16.6 73.3

3 3.5 4 4.5

16.6 16.6 66.67

3.5 4.5 5

8 and above

16.67 13.3 70

2.5 3 4

20 73.3 6.67

4 4.5 5

33.3 66.6

4.5 5

6.6 13.3 80

4 4.5 5

No. of people

E. Puckering of Garment at Stitch Joints: 25 20 15 10 5 0

No. of people Responded Never

Rarely Occasionally

Often

Responce Fig.4: Comments of Customers on Puckering of Garments at Stitch Joints

The solution adopted by manufacturers for such a problem is to mercerize the yarns which are going to be used for

38


FABRIC FOCUS

Weaving – Challenges and Opportunities for the SME sector Mr. Sharad Tandon, CEO, Standon Consulting

- Sharad Tandon, CEO, Standon Consulting

India has been witnessing rapid modernisation in almost all fields of technology. This change has touched lives like never before and continues to do so in more and more areas of our day to day life. Electronic voting, the penetration of mobile services are but just two examples. It is but natural that textiles are also swept along in the sweeping changes. Like any other industry textiles has also sought to embrace the new technologies for better products at lower prices; starting from fibre manufacturing to spinning of natural fibres and finished garments. Today, we have world class man-made fibre plants and equally modern and up-todate natural fibre spinning mills, especially cotton spinning units that have placed India on the world map of quality yarn suppliers. However, if we take a look at the total textile sector, we notice that the weaving sector some how still seems to be struggling. There is lack of adaptation & Upgradation of new technologies which our competitors like China have taken to in a big way. It is surprising that in a technology friendly country like India, which is known for its technical support to the entire world, we have not adapted in the other sectors. The reason is not complex to fathom. What has been the strength and the driving force of the weaving industries growth in India, is now becoming its biggest obstacle to this technological absorption; the weaving industry being majorly in the Small and Medium Sectors. In the past, there has been exponential growth due to fast and commercial based decision-making of the owners with adaptation of technologies where they saw the benefits. Yet, paradoxically this has also led to retarded growth in the same sector as lack of management skills forces owners to slow down growth plans beyond a certain level that are required in today's world economy. The key difference between India and China is the volume and scale at which the two operate. No wonder, China leads and India still struggles to get its expected market share.


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FORECAST

Key Print Trends Autumn / Winter 2013

Courtesy: Alix Malka, Amanda Richardson, Preen via Fashionising, Magriet Smulders

Over-sized Flower Heads / Inky Colours / Florals With Mark Making / Single Blooms / Watercolour Backgrounds / Bleeding / Over-exposure / Flooded Ink / Intense Colour On Dark Backgrounds / Dusky Colour Schemes / Glowing Hues / Overlapping Areas

Courtesy: Anni Albers, Friedlinde de Colbertado Dinzl, Marni, Vintage Wallpaper

Bauhaus Expression / 1920′s 1960′s 1970′s Mixed / Omega Workshop References / Bloomsbury Style / Wallpaper Looks / Optical Mixes / Tie-style Foulards / Paisley Motifs / Grid-like Patterns / Chevron and Striped

42

Textile Value Chain | April - June 2013


FORECAST Courtesy: Vintage Carpets, Daniela Ovtcharov, Mariano Fortuny, 'Valentino Haute Couture A12 via Fashionising

Rococo Styles / Hidden Silhouettes / Baroque Imagery / Unfinished Work and Sketching / Bleach Effects / Victoriana / Devore Velvets / Scroll Work / Paisley Bleed / Decorative Work / Ornate Gold and Coppers

Courtesy: Jeanne Williamson, U.S. Army Corps of Engineers, Stephanie Jung, Federico Cortese

Urban Landscape / Photographic Cities Overlaid / Urban Imagery / Pixel Blur / Collage Mix / Graffiti One Colour / Black & White / Industrial Landscape / Mapping / Contour Lines / Mixed Drawn Imagery / Grainy Prints Courtesy: Première Vision + Indigo via www.patternbank.com

Textile Value Chain | April - June 2013

43


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FASHION FOCUS

Trends and Developments in Apparel and Fashion Technology Prof. Kalyan Roy with

Reetipal Singh & Nisha Arora Department of Textile Engineering, Punjab Technical Univ.

46

Textile Value Chain | April - June 2013


FASHION FOCUS

colourways, and construction details - are available for reuse the next season and can be shared easily with suppliers for quick replenishment. Lectra® Fashion PLM gives fashion companies complete control over operations so that they can continuously anticipate and respond to consumer demands down to colour, size, style, and fit for each distribution channel, while at the same time making supply-side decisions and reacting quickly and intelligently to external factors, such as fluctuations in the price of raw materials. Another feature of Lectra® PLM is to manage fabric to reduce costs. Embedded automated marker-making tools enable fast and effective prototyping, costing, and production. The material management solution can be used to optimize markers and increase material efficiency, generating fabric savings of up to 5%. 2.3 Laser Cutting in Apparel Production: This high precision and high quality cutting results into high added value for garment cut by laser. And the high precision onetime cutting can help garment manufacturers save fabric, production time as well as labour cost by great measures. Besides, data for every pattern can be saved in computer for future use. The need to draw graphics/sketch, cut and keep cardboard for each size of each style by hand is eliminated. That is why it is so good for made-to-measure garment and to make pattern/sample clothes.

to provide a highly diverse range of products and services to customer/consumer in the exact quantity. Many retailers have found that they can serve customers better by implementing QR without reducing profits. A QR strategy is reported to result in efficiencies, such as quicker deliveries, faster inventory turns, fewer stock-outs, fewer markdowns and lower inventory investment. Most companies that have implemented QR have got positive impacts on their financial and operating data by increasing profits and/or imparting better pricing to consumers. The introduction and implementation of QR are gradually increasing. Implementation of QR strategies provides a lot of advantages. It is evident from the previous research that all of the below economic benefits and advantages to both the retailers and to the supply chain members have been obtained because of QR implementation. The benefits of QR implementation can be tabulated as follows: Table 1: Advantages of QR implementation Suppliers' benefits        

Reduction of buying mistakes Minimization of stock holding Quick tracking of merchandise Higher stock turn Improvement of cash flow Increment of customer service Very higher level of profit Enlarged competitive advantages

Suppliers' benefits            

Figure 1. Clothing Laser Cutting Machine

3. Developments in Management : Supply chain management through Quick Response & Agile Marketing: “Managing the Supply Chain to meet Consumer Demand”. Quick Response Management emphasizes the beneficial effect of reducing internal and external lead times. Shorter lead times improve quality, reduce cost and eliminate non-value-added waste within the organization while simultaneously increasing the organization's competitiveness and market share by serving customers better and faster. Quick response (QR) is widely accepted and implemented by retailers of department store type merchandise. QR is also described as a state of responsiveness and flexibility in which an organization seeks

Textile Value Chain | April - June 2013

Improvement of communication Improvement of planning systems Quick access to sales information Easy tracking of products Security of getting more orders Improvement of manufacturing systems High volume of production Reduction of stock holding Higher level of sales Good profit margin Getting of competitive advantages Enhanced customer satisfaction & loyalty

The typical disadvantages of implementing QR systems for the suppliers are: Installing of IT systems increases the cost.   Increased retailer demands may erode the margin. 4. Fashion Trends and its Developments: The meaning of latest trends and fashion technology gives an explanation of fashion as a sign system of cultural change and ethnic belonging. New trends development depends on the climate, culture, weather and the textile materials. There are different fashion trends in different states at different times. Outfits can be made from different types of textiles to suit different occasions and climate. Mostly, traditional Indian preference is using cottons and silk apparels, although, lately the fashion trend in India is diverting towards western culture and people prefer to wear western style outfits. Fashion is a very broad word, fashion never remains the same and over the years fashion changes periodically and also repeats with new sensibilities. It is exciting, stylish and very graceful.

47


FASHION FOCUS

The art and work related with the designers is not only restricted with the designing of clothes but also broadens to fashion accessories like shoes, bags, jewellery and many more. The interest in fashion apparel is on endless rise; accordingly the concerned opportunities and competition exists. A few of the current trends for Spring Summer collection are highlighted here to elucidate these facts. Spring/Summer fashion is all about bright colours and bold prints. So, it's right time to ditch the dark and heavy winter clothes and go for something colourful and trendy, musthave pieces of the season. This season, women fashion trends feature dazzling prints, eye-popping colours, and overall, new styles. Figure 2: Colour Block Trend The trend that is popping out everywhere this season is colour block fashion trend. Fu n a n d p l a y f u l dresses in striking combinations are IN. A mix of hot pink, emerald green, tangerine, lemon yellow, turquoise and many more vibrant shades are seen on red carpet and street. Colour blocking effects on clothes are complimented by accessories like shoes and handbags for a fun-edgy look. Figure 3: Floral Jeans Trend Spring/Summer 2012 season was all about floral prints. Floral print trend has dominated most runways and now floral jeans trend is one of the season's biggest trends.

Figure 4: Neon Colour Trend The spring spirit is embraced in a loud neon coloured dress. From dresses to shoes, handbags to hair or nails; everything was going neon. The key to stay true to trend was not to wear many neon pieces at the same time. Neon coloured shoes, bags, jewellery etc adds to fresh and fun look. Figure 5: Maxi Dress Trend Feminine and elegant maxi dress was the centre of attention for many. Summery maxi dress is an essential piece of every woman's wardrobe. These long flowing dresses were flattering, comfortable and very smart. There was an array of styles to choose from. These dresses were worn with flats and chunky jewellery pieces for a gorgeous look. Conclusion: The fast changing scenario apparel production requires enormous expertise, both technological and managerial, to manage the business. A few developments and trends are mentioned in this article to understand these transformations. It is expected that this write-up will generate further interest in the reader to obtain a comprehensive idea on the subject. Reference: 1. www.gprotechnologies.com 2. http://www.researchandmarkets.com/reports/664358/ 3. www.lectra.com

“ Be sure what you want and be sure about yourself.

4. www.lectra.com/en/fashion_apparel/products

Fashion is not just beauty, it's about good attitude. You have to believe in yourself and be strong.

5. Barnes, L and Leegreenwood, G, 'Fast fashioning and

�

Adriana Lima

supply chain shaping the research agenda', Journal of Fashion Marketing and Management, Vol. 10, Issue 3, 2006, pp-259

48

Textile Value Chain | April - June 2013


RETAIL

Strategy & Innovation - The Only way to Survive Anup Kumar Owner - UBHO by Anup Kumar Fashion Designer & Trend Forecaster

The Indian Apparel industry, in spite of two recent global economic crises, is still very optimistic and moving ahead confidently. India has emerged as a favorable destination for the world in terms of business operations and investments. According to a report by “the Assocham-Yes Bank study”, India will be the most sought after luxury market worth Rs.82,000 cr, 2 yrs. from now. The announcement of FDI in retail, which is a great initiative in today's scenario, brings with it many challenges to the Indian clothing brands, which are into western-wear category. The scene will be such that “Only the best will Survive”. Of course many domestic brands here are at par with international ones in terms of quality and fit, but we cannot deny the fact that till today we model ourselves on them and follow them as our mentors. Though the journey began as knockoffs, 'inspiration' and adaptation of leading international brands, today most of the domestic brands are striving for original identity. Our market seems to be more prepared and resilient to meet the future challenges, the current example is an initiative by COLOR PLUS new retail strategy to give shoppers a unique experience by providing a complete look. In spite of having such a big market, we are still unable to grow as much as we should have. Indian clothing brands still lack in many areas. The time has come that we should organize ourselves in all aspects in order to survive in the current scenario as the real war is about to begin, when world's leading brands will have their presence in India. One should not have the misconception that our domestic brands will not be affected as their presence is in almost every tier of the society. The fact is just the opposite; international brands are more aware about Indian demography and know very well how to penetrate and capture the target market. Their research, development and marketing strategies are almost flawless. Lee Cooper had introduced “FAMOUS BASICS” line many years back to capture the customer segments that wished to wear the brand at economical prices. The current example is SUPERDRY, a British clothing brand, who has tied up with Reliance Brands and are planning to enter Indian market and also targeting tier-2 cities. In the market research conducted in different cities like Jaipur, Mohali, Chandigarh, Jalandhar, Bhatinda, Amritsar, Mumbai, Latur, during my Trend Forecast Workshops (organized by various fashion and textile design colleges) surprising facts were revealed. In view of the current situation, few measures are suggested which Indian clothing brands should apply to sustain and excel when they face the storm in the years to come. 1. Sense the Consumer Trend: Today, just the brand name is not enough. In the survey, consumers were asked to rank the factors like BRAND NAME, PRICE, FIT AND QUALITY, INSTORE EXPERIENCE according to their priority. Majority ranked in the order of “Price, fit and quality, in-store experience and finally the brand name”. It is really amazing that brand name has taken the last position. What does this reflect? This is a clear indication that today if a “Brand / Label” does not provide good quality at an expected price it will be rejected by their customers. This is a truly unbiased market, packed with opportunities for even the lesser-known brands. 2. Customer Service & Knowledgeable Staff: In most of the brand stores (exclusive or franchise) it was shocking to find that the

Textile Value Chain | April -June 2013

store managers and staff didn't have adequate product knowledge and information about the brand image. Trained staff is a must in stores as they are the ones who first interact with the customer face-to-face and hence can drastically affect the buying. Proper training on regular basis and measures to motivate them in terms of career growth and remuneration can be very effective in sales growth. Each customer today seeks personal attention and should be carefully handled. So, if along with the pleasant interiors and appealing window displays, if the store doesn't have trained staff, it's a matter of great concern. 3. Make the Fresh Arrival ‘Happening’: Another fact in the survey revealed that most of the customers wait either for some or the other 'offers or sales periods' for their major purchases. This is a serious concern for the clothing business because with the flood of options available to the consumer, the life of the product is reducing day by day. Brands need to take extra care to develop some strategies to keep attracting their existing target customers during the fresh arrivals. Today, brand loyalty is the biggest question. So, it's very important to hold the existing customers and at the same time try to increase the horizon. 4. Invest in Innovation & Research: Its high time that the Indian clothing brands give due importance to product innovation & research and invest in it. It should not be considered a creative wastage fund. It is now necessary to understand the importance of trends and its forecast and give flexibility to the designers to explore. Another problem with many domestic brands is that they hire very few experienced designers (freelance or full time) just to save money. It's not a safe practice and should be strongly avoided in today's scenario as we have reached a stage where if the brand doesn't have product identity of its own, it will be difficult to survive the storm that is underway. One should keep a team of junior designers depending upon one's need but guided by very experienced ones, in order to move into the right direction. 5. Strategy - The Key Market Drivers: Proper marketing strategy is the only solution to gain market share; there are no alternatives to it. We all understand that clothing business is seasonal in nature and has lots of constraints in terms of spending in advertisements or various activities to promote the product. But still lots can be done to catch the attention of the right customers for one's product. Exploring newer product categories such as MATERNITY WEAR, SPORTS WEAR, INNERWEAR etc. can be very profitable. One should understand the difference between the brand and the brand image. Spending huge amounts on advertisements may catch the attention of the customers but may not lead to sales growth and gaining popularity in terms of brand image. It needs to be backed with quality product, appropriate pricing and proper product positioning. Precaution should be taken in regards of brand image; if a brand doesn't have a strong brand image it should avoid opening too many exclusive outlets. There are many initiatives taken by the CMAI to help the domestic brands and these will surely help the brands in future e.g., the NATIONAL GARMENT FAIR, which is a wonderful business platform for both buyers and brands and at the same time attending the various conferences during the fairs can be very helpful. 6. The Real v/s Virtual: Information technology has changed the world altogether. Having a brand's own website with ecommerce facility can be very useful in terms of reaching the customers easily and getting associated with social media for product promotion and sales. The operational cost of virtual stores is much lower as compared to real stores. There are immense opportunities available and just by small efforts we can dominate in our own market rather than rely on International brands.

49


5.1 Management Commitment 6.1 Provision of Resources 8.4.1 Analysis of Data

5.2 Customer of Focus 8.2.1 Customer Satisfaction 8.5.2.1 Corrective Action


SME CORNER


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Medicinal Tapes

56


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58

Textile Value Chain | April - June 2013


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FUTURE TRENDS

Developing a Global Designer Clothing Market Dr. Sabita Baruah Dept. of Textile & Apparel Design SNDT Women's University, Mumbai

Geir Herland Business Management & IT Consultant, Oslo, Norway

Developing a Global Designer Clothing Market by using Information Technology and Comparative Cost Advantages. Abstract The main objective of this study is to look into the possibility of developing a new market for designer clothes by approaching the market while addressing the individual's desire for wearing something unique, tailor made, and affordable. This could be achieved by harnessing PC CAD technology and developing a software platform for marketing and selling. The low cost production capacity in a developing country and modern telecommunication systems can bind the different processes together. The objective of this project is to create a new opportunity for designers who can work directly with the customers or small boutiques. Introduction In the global market place, textile products depend for their success on the right combination of aesthetics, engineering quality, and price. The textile designers and design engineers need to strike the right balance. Most often, an aesthetic design starts with a creative idea. Later, it goes through an extended period of detailing and development that aims at explicitly bringing out the exquisite features of the textile material and the clothing design. This is followed by a series of instructions for machine control and production cycles. However, throughout the process there must be consideration of functional performance and cost of the market needs and of the equipment and expertise of the company concerned. The use of computers in the textile industry is no longer only in compartmental areas such as fibre measurements, economic modelling, production planning, colour matching, machine control and (knitting machine and automatic looms). In recent years, there has been a tremendous development in computer technology which has led to the use of computing in many new areas. New applications such as computer aided design, computerized control, cutting, and layouts are beginning to show promise. All these computer applications are becoming available to smaller companies as computer software and hardware becomes cheaper. However, there has been comparatively slow progress in use of computing as a tool for the designers and developing their market.

Textile Value Chain | April - June 2013

The main reason for this slow development is the designers need for visual expression. Up until now it had been difficult to create visual representations by using computers. Looking ahead, the big advance is likely to come from total integration of computer applications by looking at the entire value chain (from designer - to the market - to the manufacturers). Essentially, this issue is about a sophisticated communication channel between the market and the manufacturers. Designs produced with the aid of computers (CAD) will be presented to the market, “tested� by the client (the client or customer can be companies or individual customers) and then transmitted to the manufacturing country where they are automatically turned into operating instructions for the production machinery. Today's multimedia technologies embracing virtual reality could make all this possible in the near future. As a first step, we need to establish what computer facilities the textile designer would need as an aid to visualizing the material while providing the information to the market, and the manufacturer. The computing platform should be able to provide adequate freedom for visual representation while also generating the constructional details. There are several favourable circumstances for CAD in the textile and garment industry. The industry is now taking a long view of the R & D. The cost of computers has fallen dramatically and their power has increased. The younger generations are coming to accept and expect them as naturally available tools. In academic work, basic research is not only continuing to advance in engineering designs, but is also addressing the issue of valuable interaction between artistic designers and the computer. The control of textile machines is being achieved by microprocessors which form part of the increasing industrial use of computer aided manufacturing (CAM). The recent development of multimedia and virtual reality techniques has made them fit for complex applications. Rapid technological advancements have reduced costs of networking and communication across international borders. Approaching the new market Except for a few well known designers in Paris and New York, most designers are engaged in the business of producing clothing for the mass market segment. They usually work with major clothing marketing chains. The objective of this project is to create a new market for designers where they can work directly with the customers and /or small boutiques using modern IT technology and networks to produce designer clothing at prices that are affordable for the upper middle classes. A broad overview of the CAD/CAM technology in textile industry provides many technical challenges for ever growing consumers/designers/manufacturers both in national and international level. Today consumers in developing countries

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FUTURE TRENDS

want designer clothes that are tailor-made and affordable. Meanwhile, manufacturers are looking for more economical ways of producing quality products. And to reduce the cost of production, they take advantage of developing countries, and the comparative advantages of producing clothing in countries like China, India and Bangladesh. Building a Global Network The project is briefly described in the enclosed graphical presentation (Fig: 1). To create the new designer's market, the designs will be presented to the customers/clients by using PC based video presentation or virtual reality. The next step would be to apply the client's vital measurements and fit the designs to the individual customer's vital statistics. The customer's choice and measurements will then be sent directly to the tailor or manufacturer for producing. Fig:1 New Designer’s market using IT Technology INDIVIDUAL CUSTOMERS PC with multimedia (video & virtual reality) software as sales tool where the customer are trying/fitting the designs and correct individual measurements are send via the network-tailor

INTERNET

Marketing in developed countries and sold via sales-channel

Retail shops small shops

Specific sales channels like home parties 1.Designers developing & sending the designs to the market place

2. 5.

BOUTIQUES

2. 5.

2.Customer orders 5.Payments 1. 1. 1.

ADMINISTRATIVE FUNCTION Orders, payment etc.

DESIGNERS

3.Orders to Tailors 4.Product delivery

Communication between designers, sales channel, administrative functions & Designers to tailors manufacturers via manufacturers & telecom/network feedback from them

Manufacturers in Developing countries

Tailors

The idea is to capitalize on the innate desire of the upper middle class clientele to be seen wearing something exquisitely unique and tailor made. Many people today consider the possibility of getting tailor made clothing when they visit countries where custom tailoring is available at affordable prices. In this project it will be necessary to evaluate either readily available off the shelf software that can be used for presenting clothing, or custom develop software for this application. Furthermore, the next objective is to develop functional networking systems between designers, boutiques, customers, and tailors. A part of the project should be to examine how the Internet platform can be used cost

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effectively and efficiently for presenting, ordering, and paying for the commodities. There may be a need to build a pool of designers and tailors who can be a part of such a production environment. Also, it must be evaluated on how to deliver the clothes to the customers who have bought the designs. A market research should be conducted to make sure that there is a market for specially designed and tailor-made clothes. It is also important to forecast how the market and competitors will react. Research activities involved The activities needed to be part of this project which have not yet been identified are Evaluate software suitable for CAD/ CAM   Evaluate software available for marketing and sale channels and deployment over the Internet.   Evaluate Networking solutions   Evaluate and decide hardware for designers, sales channels and manufacturers or tailors   Organize and carry out market research   Analyze the competitors   Develop a business plan   Set up a designers pool and pool of tailors   Develop the market and sales channels Conclusion The objective of this project is to find ways to meet the needs of a global niche market for custom made designer clothing that is affordably priced. This initiative could utilize talent and capitalize on the cost advantages which developing nations can offer, while using information technology and the Internet for a global outreach. However, this initiative should not result in a new wave of sweat shops that spring up to exploit cheap labour in third world countries. It is believed that globalization allows the great industrial powers of the world to impose unfair trade agreements through the WTO. In the tough years ahead, bilateral trade activities between nations will become more intense, entwined, and complex. For survival in a globalizing world, competing clothing manufacturers in India, Taiwan, China, Malaysia, Thailand, South Korea, Bangladesh, and Sri Lanka might have to move up the value chain into designer clothing. References 1. Tony Hines & Margaret Bruce, Fashion Marketing: Contemporary Issues, Elsevier publishers, New Delhi, 2006,Pg 48-63,203-207. 2. Michael Levy & Barton A Weitz, Retailing Management, Tata McGraw-Hill Publishing Company Limited, New Delhi,2003,Pg 5759,146-308. 3. V.D. Dudeja, The Business of Fashion Challenges and Expectations, Gagandeep Publications, Delhi, 2008,Pg 131-142. 4. R. Mathew, Apparel merchandizing, Book Enclave publisher,Jaipur,2008,Pg 91-93,168-169 5. R. Aggarwal, Marketing Fashion Product Through E-Commerce, Apparel views,Feb, 2013,Vol-XII, issue-02

“ The week can never Forgive. Forgiveness is the attribute of the strong” Mahatma Gandhi

Textile Value Chain | April - June 2013


advt.


Textile Value Chain | April - June 2013

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SKILL GAP ANALYSIS


COLLEGE FOCUS Ghaziabad Campus

At the Convocation: (L-R) Dr. J. V. Rao, Director General, Sh. R. K. Jain, Dy Chairman, Sh. R. L. Nolkha, Chairman, and Dr. R. C. Jain, Past Chairman, NITRA, Dr. M. S. Raizada, Director, NTC, and Sh. Abhijit Pal, Officiating Director, NITRA

February 2013 NITRA PRESS COMMUNIQUE Chairman, NITRA Graces 11th Convocation

Textile Value Chain | April -June 2013

Sh. R. L. Nolkha, Chairman, NITRA in his convocation address said that the Indian textile industry is the second largest employment provider in the country that directly and indirectly employs 35 million people. The current size of India's Textile and Clothing Industry is US$ 55 billion which is likely to substantially increase in the coming years. It is also estimated that the textile and clothing industry will generate additional 30 million direct and indirect employments for the Indian youth by 2020. He was happy to inform the gathering that NITRA has already invested a substantial amount for the up-gradation of physical and academic facilities such as setting up exclusive training and academic wing NTC and modernizing the existing training infrastructure. NITRA is providing huge benefit to the Industry by developing skilled and well-trained supply line to meet out their manpower needs. This activity would definitely enhance industry confidence in NITRA's programs and industry will continue to support NITRA by recruiting its students in large numbers, opined the Chairman, to conclude.

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GOVT. POLICY

Key Features of Budget 2013-2014 Shri. V. Y. Tamhane Editorial Advisor, Secretary General of MOA

THE ECONOMY AND THE CHALLENGES Getting back to potential growth rate of 8% is the challenge facing the country. Slowdown in Indian economy has to be seen in the context of slowing global economic growth from 3.9% in 2011 to 3.2% in 2012.   However, no reason for gloom or pessimism. Of the large countries of the world only China and Indonesia growing faster than India in 2012-13. In 2013-14, only China projected to grow faster than India. Between 2004 & 2008, and again in 2009-10 and 2010-11 the growth rate was over 8% and crossed 9 per cent in four of those six years.   11th Plan period had average growth rate of 8%, highest during any Plan period, entirely under the UPA Govt.   High growth rate can again be achieved through cooperation.   Higher growth leading to inclusive and sustainable development' to be the mool mantra.   Govt. believes in inclusive development with emphasis on improving human development indicators especially of women, the scheduled castes, the scheduled tribes, the minorities and some backward classes. This Budget is a testimony to that commitment. FISCAL DEFICIT, CURRENT ACCOUNT DEFICIT AND INFLATION The purpose of Budget is to create economic space and find resources to achieve the objective of inclusive development.   Dr Vijay Kelkar Committee made its recommendations to Govt. in September 2012. A new fiscal consolidation path with fiscal deficit at 5.3% of GDP this year and 4.8% of GDP in 201314 announced by the Govt.   Foreign investment is imperative in view of the high current account deficit (CAD). FII, FDI and ECB three main sources of CAD Financing. Foreign investment that is consistent with our economic objectives to be encouraged.   Development must be economically & ecologically sustainable & democratically legitimate.   Battle against inflation must be fought on all fronts. Efforts in the past few months have brought down headline WPI inflation to about 7% and core inflation to about 4.2%.   Food inflation is worrying but all possible steps to be taken to augment the supply side to meet the growing demand for food items.   Govt. expenditure has both good and bad consequences and trick is to find the correct level.   Faced with huge fiscal deficit, Govt. expenditure rationalised in 2012-13. Some economic space retrieved. Space to be used to further Govt's socio-economic objectives. ICDS   17,700 crores allocated for ICDS in 2013-14 representing an increase of 11.7% over 2012-13.   Allocation of 300 crores in 2013-14 for a multi-sectoral programme aimed at overcoming maternal and child

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malnutrition. Programme to be implemented in 100 districts during 2013-14 to be scaled to cover 200 districts the year after. AGRICULTURE Average annual growth rate of agriculture and allied sector was 3.6% during XI Plan against 2.5% and 2.4% in IX and X plans respectively.   In 2012-13, total food-grain production will be over 250 million tonnes. Minimum support price for every agricultural produce has increased significantly under the UPA Govt.   27,049 crores allocated to Ministry of Agriculture, an increase of 22% over the RE of current year.   Agricultural research provided 3,415 crore. AGRICULTURAL CREDIT   For 2013-14, target of agricultural credit kept at 7 lakh crores.   Interest subvention scheme for short-term crop loans to be a continued scheme & extended for crop loans borrowed from private sector scheduled commercial banks. GREEN REVOLUTION   Bringing green revolution to eastern India a remarkable success. 1,000 crores allocated in 2013-14.   500 crores allocated for starting a programme of crop diversification that would promote technological innovation & encourage farmers to choose crop alternatives.   Rashtriya Krishi Vikas Yojana and National Food Security Mission provided 9,954 crores and 2,250 crores respectively.   Allocation for integrated watershed programme increased from 3,050 crores in 2012-13 (BE) to 5,387 crores.   Allocation made for pilots programme on Nutri-Farms for introducing new crop varieties that are rich in micro-nutrients.   National Institute of Biotic Stress Management for addressing plant protection issues will be established at Raipur, Chhattisgarh.   The Indian Institute of Agricultural Bio-technology will be established at Ranchi, Jharkhand.   Pilot scheme to replant and rejuvenate coconut gardens implemented in some districts of Kerala and the Andaman & Nicobar extended to entire State of Kerala. FARMER PRODUCER ORGANIZATIONS Matching equity grants to registered Farmer Producer Organization (FPO) up to a maximum of 10 lakhs per FPO to enable them to leverage working capital from financial institutions.   Credit Guarantee Fund to be created in the Small Farmers' Agri Business Corporation with an initial corpus of 100 crores. INVESTMENT, INFRASTRUCTURE AND INDUSTRY   Infrastructure Debt Funds (IDF) to be encouraged,   IIFCL to offer credit enhancement.   Infrastructure tax-free bond of 50,000 crores in 2013-14.   Build roads in North eastern states and connect them to Myanmar with assistance from WB & ADB.   Raising corpus of RIDF to 20,000 crores and   5,000 crores to NABARD to finance construction for warehousing. Window to Panchayats to finance construction of godowns. ROAD CONSTRUCTION

Textile Value Chain | April - June 2013


GOVT. POLICY

A regulatory authority for road sector.   3000 kms of road projects in Gujarat, Madhya Pradesh, Maharashtra, Rajasthan and Uttar Pradesh will be awarded in the first six months of 2013-14. NEW INVESTMENT   Companies investing 100 crores or more in plant and machinery during the period 1.4.2013 to 31.3.2015 will be entitled to deduct an investment allowance of 15% of the investment.   Incentives to semiconductor wafer fab manufacturing facilities, including zero customs duty for plant and machinery. SAVINGS   Need to incentivise greater savings by household sector in financial instruments. Following measures proposed:   Rajiv Gandhi Equity Savings Scheme to be liberalized. Additional deduction of interest up to 1 lakh for a person taking first home loan up to 25 lakh during period 1.4.2013 to 31.3.2014 In consultation with RBI, instruments protecting savings from inflation to be introduced. INDUSTRIAL CORRIDORS Plans for 7 new cities have been finalized and work on two new smart industrial cities at Dholera, Gujarat and Shendra Bidkin, Maharashtra will start during 2013-14   Delhi Mumbai Industrial Corridor (DMIC) to be provided additional funds during 2013-14 within the share of the Govt of India in the overall outlay, if required.   Chennai Bengaluru Industrial Corridor to be developed.   Preparatory work has started for Bengaluru Mumbai Industrial Corridor. PORTS   2 new major ports will be established in Sagar, West Bengal and in Andhra Pradesh to add 100 million tonnes of capacity.   A new outer harbour to be developed in the VOC port at Thoothukkudi, Tamil Nadu through PPP at an estimated cost of 7,500 crores. OIL AND GAS   A policy to encourage exploration and production of shale gas will be announced.   The 5 MMTPA LNG terminal in Dabhol, Maharashtra will be fully operational in 2013-14. COAL   In the medium to long term need to reduce our dependence on imported coal. One way forward is to devise a PPP policy framework with Coal India Limited as one of the partners.   Ministry of Coal to announce Govt's policies in due course. POWER   Guidelines regarding financial restructuring of DISCOMS have been announced. State Govt. urged to prepare the financial restructuring plan, quickly sign MoU and take advantage of the scheme. TEXTILES   Technology Upgradation Fund Scheme (TUFS) to continue

Textile Value Chain | April - June 2013

in 12th Plan with an investment target of Rs 1,51,000 crores. Allocation of Rs 50 crores to Ministry of Textile to incentivise setting up Apparel Parks within the SITPs to house apparel manufacturing units.   A new scheme called the Integrated Processing Development Scheme (IPDS) will be implemented in the 12th Plan to address the environmental concerns of the textile industry.   Working capital and term loans at a concessional interest of 6% to handloom sector.   Scheme of Fund for Regeneration of Traditional Industries (SFURTI) extended to 800 clusters during the 12th Plan.   Basic Customs duty on certain textile machinery and ports falling in H.S. line # 8444, 8445, 8446, 8447, 8448 and 8449 has been reduced from 7.5% to 5%.   The zero excise duty route which existed prior to Budget 2011-12 has been restored for readymade garments and madeups, in addition to the cen vat credit route.   All handmade carpets and carpets and other textile floor coverings of coir and jute whether or not handmade, falling under chapter 57 are fully exempted from excise duty. FOREIGN TRADE   Support measures to be taken to boost exports of goods and services. CAPITAL MARKET   Proposal to amend the SEBI Act, to strengthen the regulator, under consideration.   Number of proposal finalised in consultation with SEBI.   Designated depository participants, authorised by SEBI, may register different classes of portfolio investors, subject to compliance with KYC guidelines.   SEBI will simplify the procedures and prescribe uniform registration and other norms for entry for foreign portfolio investors.   Rule that, where an investor has a stake of 10% or less in a company, it will be treated as FII and, where an investor has a stake of more than 10%, it will be treated as FDI will be laid.   FIIs will be permitted to participate in the exchange traded currency derivative segment to the extent of their Indian rupee exposure in India.   FIIs will also be permitted to use their investment in corporate bonds and Govt. securities as collateral to meet their margin requirements.   SEBI to prescribed requirement for angel investor pools by which they can be recognised as Category I AIF venture capital funds.   Small and medium enterprises, to be permitted to list on the SME exchange without being required to make an initial public offer (IPO).   Stock exchanges to be allowed to introduce a dedicated debt segment on the exchange. ENVIRONMENT   Support to municipalities that will implement waste-toenergy projects.   Govt. to provide low interest bearing fund from the National Clean Energy Fund (NCEF) to IREDA to on-lend to viable renewable energy projects.   'Generation-based incentive' reintroduced for wind energy projects and 800 crores allocated for this purpose.

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GOVT. POLICY

OTHER PROPOSALS BACKWARD REGIONS GRANT FUND New criteria for determining backwardness to be evolved and reflect them in future planning and devolution of funds. SKILL DEVELOPMENT   Target of imparting skills to 50 million people in the 12th Plan period, including 9 million in 2013-14. DEFENCE   Allocation for Defence increased to 2,03,672 crores including 86,741 crores for capital expenditure.   Constraints not to come in the way of providing any addition requirement for the security of nation. SCIENCE AND TECHNOLOGY   Despite constraints substantial enhancements given to Science and Technology, Space and Atomic Energy.   200 crores to be set apart to fund organisations that will scale up S&T innovations and make these products available to the people. INSTITUTIONS OF EXCELLENCE A grant of 100 crores each made to 4 institutions of excellence. SPORTS   National Institute of Sports Coaching to be set up at Patiala at a cost of 250 crores over a period of 3 years. BROADCASTING All cities having a population of more than 1,00,000 will be covered by private FM radio services. PANCHAYAT RAJ  

Augmentation in the Budget allocation of Rajiv Gandhi

Panchayat Sashaktikaran Abhiyan (RGPSA) to 455 crores in 201314. An additional 200 crores proposed to be provided. POST OFFICES An ambitious IT driven project to modernise the postal network at a cost of Rs. 4,909 crore. Post offices to become part of the core banking solution and offer real time banking services. CENTRAL SCHEMES Centrally Sponsored Schemes (CSS) and Additional Central Assistance (ACA) Schemes to be restructured into 70 schemes. Central fund for the schemes to be given to the States as part of central plan assistance. THREE PROMISES   Promises made to woman, youth and poor.   We stand in solidarity with our girl children and women. And we pledge to do everything possible to empower them and to keep them safe and secure. A fund - “Nirbhaya Fund” - to be setup with Govt contribution of 1,000 crores.   Youth to be motivated to voluntarily join skill development programmes. National Skill Development Corporation to set the curriculum and standards for training in different skills. 1000 crores set apart for this scheme.   For the poor of India direct benefit transfer scheme will be rolled out throughout the country during the term of the UPA Govt. with the motive “Äapka paisa aapke haath”. BUDGET ESTIMATES Plan expenditure is placed at 5,55,322 crores.   Non Plan Expenditure is estimated at 11,09,975 crores.   Fiscal deficit for the current year contained at 5.2% and for the year 2013-14 at 4.8%.   Revenue deficit for the current year at 3.9% and for the year 2013-14 at 3.3%.   By 2016-17 fiscal deficit to be brought down to 3%, revenue deficit to 1.5% and effective revenue deficit to 0%.

“EDHHAR KUUA UDHHAR KHHAEE” 'NA LBT, NA OCTROI' Policy of Maharashtra Govt. fuelling Stagnation, Corruption and Forcing Industry, Businesses and masses to move to fair, Transparent & Progressive States like Gujarat Over a period of time, every country and every other state in India has abolished age old form of tax collection 'OCTROI'. With modernization, octroi became redundant & outdated leading to localized & unchecked corruption, wasting man hours, forex (fuel wastage), adding to inflation, anti-growth, and much more…. Cities like Delhi, Kolkatta, Chennai, Surat and Ahmedabad can survive without Octroi and without LBT, why can't Mumbai, Pune etc. survive? As we are facing competition from other states and countries, we cannot compromise our competitive edge due to these obnoxious forms of taxes. Maharashtrian's have realized the reasons of slow and gradual deterioration of Maharashtra's economy. Political indifference over decades have lead to ironic situation where the most advanced city of our country still has the most backward form of tax collection. Octroi has been under controversy of corruption since its inception and is a burden to the people. Free and fair movement of goods is the democratic right of every citizen, while Octroi & LBT is against it. Now, to add confusion to the matter, Local Body Tax (LBT) is

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proposed to be introduced in place of octroi. There is strong opposition to LBT. But it has been tactfully projected that people are favouring Octroi. The strong opposition to LBT should never be misunderstood for acceptance to Octroi. It is ironical why Octroi collecting municipal staff are opposing withdrawal of octroi. Their jobs will in any way be taken care by the municipalities, then what is their personal interest in opposing? At a trade association meeting, one politician asked where they would get the revenue from if Octroi is abolished. The politician was silenced by the prompt replies: Where did the other cities get revenue when they abolished Octroi years ago?  If at all the state Govt. is unwilling to fund the municipalities, collection can be done along with existing taxes, viz VAT. And now with GST in 2014, we are moving towards single point taxation. As a leading national level trade, commerce & industrial association, representing textile & textile related sectors; Bharat Merchants' Chamber has taken strong stand in the interest of its members & masses of Maharashtra urging the State Govt. and BMC not to delay the Octroi abolishment on the pretext of LBT imposition.

Textile Value Chain | April - June 2013


BUDGE REACTIONS

Associations React to BUDGET 2013-14 TVC has compiled reactions of various Indian Textile Associations for our readers' benefit. Below is the synopsis‌ THE SYNTHETIC & RAYON TEXTILES EXPORT PROMOTION COUNCIL (SRTEPC) & FEDERATION OF INDIAN ART SILK WEAVING INDUSTRY (FIASWI) Shri Rakesh Mehra, Chairman of SRTEPC and Mr. Arun Jariwal Chairman of FIASWI stated there was a strong case for reduction in excise duty and customs duty on man-made fibre textiles as envisaged in National Fibre Policy so as to bring about parity in various fibres. However, this has been skipped by the Finance Minister. The Budget has not made any significant changes for the man-made fibre textile industry. SRTEPC Chairman also added that the continuation of TUFS with greater emphasis on weaving sector is a welcome step along with the revertal of optional route for readymade garments. He also expressed hope that the much needed incentives for the exporters will be announced in the forthcoming Foreign Trade Policy wherein the interest subvention scheme will be extended to the entire Textile Sector along with inclusion of all man-made fibre textile items under the Focus Product/Market Scheme.

CONFEDERATION OF INDIA TEXTILE INDUSTRY (CITI) Shri S.V. Arumugam, Chairman of CITI expressed that CITI and the textile industry were extremely grateful for the several positive provisions incorporated in the Union Budget. The reduction of customs duty on textile machinery from 7.5% to 5% is a helpful feature which will improve the investment climate for the textiles sector. He was also thankful for the continuation of TUFS and revertal of optional route for readymade garments. The allocation of Rs. 50 crores for Apparel Parks and launching of IDPS was good. The Budget did not address the power issue facing the industry which was disappointing.

INDIAN SPINNERS ASSOCIATION (ISA) ISA lauds the Budget which proposes effective steps to control the price spiral. However, the Association feels that the man-made fibre textile and garment segment has not recovered from previous years, despite distinct consumer preference enjoyed by man-made fibre fabrics and hence it requires a helping hand from Govt. Over the years, manmade fibre textiles and garments have been subject to a higher rate of excise duty which needs to be brought in par with natural fibres and garments.

FEDERATION OF ALL INDIA TEXTILE MANUFACTURER'S ASSOCIATION (FAITMA) Shri Ramesh Poddar, President of FAITMA called the Union Budget a delightful blend of investment push for growth and measures for economic welfare. Besides TUFS, abolition of distinction between branded and unbranded ready-made garments and made-ups, he thanked the Govt. for providing working capital and term loans to the handloom sector at concessional rate of 6%. He was of the view that Govt. should have accepted the long-standing request of the textile industry to treat man-made stream of production on the same footing as cotton stream of production for purposes of levy of excise duty. Referring to GST (Good & Service Tax), he observed that Govt. should here the textile industry to understand its problems and apprehensions before taking a final decision on the subject.

CLOTHING MANUFACTURERS' ASSOCIATION OF INDIA (CMAI) Mr. Rahul Mehta, President of CMAI thanked Govt. for removal of excise duty from branded garments. This was essential in this economy and it will bring back some vigour & strength to the sector. This will not only provide 0% duty to the industry but also provide some form of production to the domestic industry from cheap imports. It will also encourage foreign retailers setting up shop in India to manufacturer their requirement in India rather than import from other country. This minimizes the attraction of grey market purchase and it's an incentive to the brands and manufacturers to scale-up and move to the organized sector.

Textile Value Chain | April - June 2013

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LETTERS TO GOVT.

In March 2013, BMC and SASMA shot a couple of letters to the Central Govt. regarding Export/ Import Policies. Let's take a look at those letters... Honorary General Secretary, Shiv Kanodia, Bharat Merchants' Chamber (BMC), Mumbai Flaws in Policy of Duty-free Import of Garments from Bangladesh th

On 7 Sept'2011, Indian Prime Minister announced on his Bangladesh visit, 'duty-free import of 48 textile items from Bangladesh to India'. The primary justification given was to address the problem of trade imbalance between the two countries. It was claimed that India was selling goods worth about $ 3 billion to Bangladesh against the latter's export of about $ 400 million to India. The above policy was announced in spite of widespread protest and resistance from across the country, including textile industry, trade unions & the masses employed in garment sector of India. After agriculture, textile is the second major employment generator to the masses in India, across various states and in various sectors related to textiles. The industrial growth of India was on the backbone of Textiles and for centuries, is the only livelihood for crores of uneducated families employed in farming of cotton, weaving, hand processing, embroidery, garmenting, laborers etc. Textile has been India's core competence area and needs to be strengthened further, in view of stiff competence from unfair policies from countries like China. If we fretter away our advantages, our textile industry will die a pre-mature death. As feared, over a period of 18 months, several cracks in the 'duty-free import of garments' policy have surfaced. 1) Several garment units have shifted from India to Bangladesh, leaving lakhs of workers, tailors and other uneducated employees jobless in India. 2) Garmenting units in India are unable to compete with dumping of Bangladeshi imports, and are slowly shutting down, rendering lakhs of workers, tailors and other uneducated employees jobless in India. 3) An Indian wage earner of Rs.6000/- per month is made to compete with the Bangladeshi worker being paid a meager amount of Rs.2000/per month. Aren't we driving him towards poverty? 4) Ready fabric is being dumped from China into Bangladesh and after converting into garments, dumped in India. 5) Lately, container loads of readymade garments from China are being dumped in India, through duty-free route of Bangladesh. This way the garmenting workers of India and Bangladesh are both deprived and left high and dry. The problem of trade imbalance between the two countries may not have eased significant, but the trade imbalance between China and Bangladesh will definitely widen. China will be at advantageous position and can exploit the situation. India, as big brother to Bangladesh should take lenient & supportive stand, but not at the cost of crores of Indian workers. The present policy is nothing but 'robbing Peter to feed Paul'. The Indian Government needs to take views of concerned stakeholders before announcing such policies. As neighbours, India should take viable and sustainable steps to help Bangladesh, but not the cost of its own people. As leading national level trade, commerce & industrial association, representing textile & textile related sectors, BMC has taken strong stand in the interest of its members & masses engaged in cotton farming, textile workers, daily wage earners, ancient HAST KALA industry of India. We have urged the Central Govt. to urgently evaluate the anomalies and take following steps:1) To assist Bangladesh, should formulate policy which does not harm Indian masses and benefit Bangladesh, rather than any third country. 2) Immediately withdraw the policy of 'duty-free import of garments'. 3) Rehabilitate / compensate workers rendered jobless, unpaid wages, delayed payments due to above policy. 4) Encourage companies who have shifted to Bangladesh to return back and reinstate workers rendered jobless by them. 5) Restructure debt / give one time financial assistance to companies remaining in India, adversely affected by the above policy. 6) Give financial grant to labors of struggling garment majors suffering due to above policy. Synthetic & Art Mill's Association ltd. (SASMA), Mumbai Proposal to allow Import of Man-made Fabrics at confessional rate of duty for Exports of Readymade Garments Chairman Shri Maganlal H. Doshi We understand that the Govt. is actively considering permitting Import of Man-made Fabrics at concessional rate on Import Duty to support Exports of Readymade Garments. Synthetic & Art Silk Mills' Association Ltd. (SASMA) is an Association which represents the manufacturers of Man-made Fabrics. While the objective of this proposal would no doubt facilitate increase of Exports of Readymade Garments. But, we have to consider the over all picture of the Indian Textile Industry. This move would severely affect the Small & Medium Units who manufacture Man-made Fabrics which are mostly made on Powerlooms. As you are aware the Powerloom Sector has around 20 Lac Looms and employs over 50 Lac workers. If the proposal goes through, it will be a massive blow to this Sector causing disruptions and closures of Powerloom Units and thereby causing massive unemployment. As a result the economy of the country would suffer and cause embarrassment to the Govt. We feel the best solution would be to allow Import of Fabric at Zero Duty under the Advance License Scheme under which there can be a strict monitor to see that such imports are accounted for by way of Export of the same Fabrics. At the same time Govt. should also look into bringing down the Excise Duty on Man-made yarn / fabrics to be at par with cotton yarn / fabrics. This point has been clearly mentioned in the Draft National Fibre Policy. As of now yarn is not available at International prices in our country as the Yarn produced is being diverted for Exports and also there is Anti-Dumping Duty levied on Imports of Yarn. More attention should be given to creation of Textile Parks and continuing with TUFS for modernization of the units. These moves will be a big boost to the domestic Powerloom Sector, which will enable them to supply quality fabrics at cheaper prices to the Garment manufacturers.

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TextileTextile Value Value ChainChain | April -June- June 20132013 | April


ASSOCIATION NEWS

PRESS RELEASE FROM SASMIRA The Synthetic and Art Silk Mills' Research Association (SASMIRA) situated in Worli, Mumbai, Maharastra (www.agrotech.sasmira.org) is the Centre of Excellence in Agrotextiles (COE-Agrotech) in association with Man-made Textile Research Association (MANTRA), Surat, Navsari Agricultural University (NAU), Navsari and Indian Institute of Technology (IIT), New Delhi. A textile fabric has a long history of application in agriculture. Textiles in different forms are exclusively used for many agricultural end uses that include knits, wovens, non-wovens, extruded sheets, moulded products, ropes, belts, etc. The Agrotextile sector comprises of all textiles that are used in growing, harvesting, protection and storage of either crops or animals. Agrotextiles help to keep sufficient soil humidity and increase the soil temperature. Various synthetics as well as natural fibres are used in agrotextiles applications viz. Nylon, Polyester, Polyethylene, Polyolefin, Polypropylene, Jute, Wool, etc. Among all these fibres the Polyolefin is extensively used where as among natural, jute and wool is used as it not only serves the purpose but also after few years it can degrade and act as a natural fertilizer. Man-made fibres give advantages over natural fibres, mainly due to their favourable price/ performance ratio, ease of transport as well as set-up, space saving storage and long service life. Agrotextile includes diverse items such as fishing nets and fish lines, ropes, shade fabrics, mulch mats, woven and nonwoven covers for crops, bird protection nets, wind-break screens, frost protection covers, hail netting, insect screens, silage protection, ventilation screens, shading and reflection screens, etc. Agrotextiles are driving the agrosector profitably by improving the productivity and reducing the need for chemicals. The need to feed an ever-expanding population is the underlying driving force behind the agrotech sector. COEAgrotech is set-up with a vision “to become a world class leading service, driven with research based international technical textile association to serve the industry in general and agriculture sector in particular”. With this vision, its mission is to create awareness regarding the advantages of agrotextiles to improve productivity and quality of the produce with state-of- the-art infrastructure of testing and certification, demonstration & training and information centre to support the entrepreneur needs.

In line with its vision and mission of creating awareness regarding agrotextile products, SASMIRA has so far conducted various seminars across the country in association with the Agriculture Universities, Krishi Vigyan Kendras (KVK's) and local agricultural bodies. COE-Agrotech organizes these seminars to explore the enormous potential of Agro Textiles and their products. The Seminar also aims to provide a unique platform to comprehensively address the concerns and bring together the stake-holders viz., farmers, the industry, agro products manufacturers, agro processing goods manufacturers, fishing industry professionals, investors, financial institutions, warehousing companies, engineers, technicians and consultants working on all types of agro textiles. March News 1) Accreditation of COE-Agrotech laboratory by American Association for Laboratory Accreditation (A2LA), USA: This lab for testing of textiles and allied substrates was audited for renewal of accreditation and after successful audit the renewal was granted and now valid upto march 2015. A total 129 tests are accredited under A2LA accreditation for mechanical, chemical and biological testing of textiles and allied products.

2) One day seminar on “Prophylactic Cultivation using Agrotextiles” (PCA) by COE-Agrotech: A Seminar on PCA was held on 16th March 2013 at Farmers Training Hall, Jabalpur, MP jointly by SASMIRA, KVK and Jawaharlal Nehru Krishi Vishwa Vidyalaya(JNKVV). The programme was supported by Ministry of Textiles and Textile Commissioner Office and inaugurated by Honorable, Shri V. S. Tomar, Vice Chancellor, JNKVV. The 3 technical sessions highlighted the Ministerial support to the agriculture and agrotextiles sector as well as the manufacturing techniques for the agrotextile products including the raw materials, the success stories of few greenhouse farmers and the role of Centre of Excellence for Agrotextiles, SASMIRA. 3) Training Programme on Microbiology by COEAgrotech: A 5 days training programme on “Testing of Antimicrobial Textiles” was conducted at Microbiology laboratory, SASMIRA for candidates from Dharwad Agriculture University, Dharwad, Karnataka from 11th March to 15th March 2013. Training programme included introduction to lab procedure of general microbiology, hands on training of International test methods for testing antimicrobial efficacy of textile substrates as per AATCC, ISO and ASTM.

PRESS RELEASE FROM BHARAT MERCHANT CHAMBER Bharat Merchants' Chamber, lead by Maha Sachiv (General Secretary) Shiv Kanodia along with MLA Niranjan Davkhare felicitated Sri Ajit Pawar, Dy.C.M. & F.M., Maharashtra, for his budget proposal, exempting inter-state VAT (CST) on furnishing cloth. Mr. Shiv Kanodia congratulated Sri Ajit Pawar, for his visionary and futuristic budget which will uplift the masses of Maharashtra. MLA Niranjan Davkahre said that this will benefit the common man including weavers, workers & Textile Value Chain | April - June 2013

mathadi's etc. He also informed that the exodus of furnishing trade and industry will stop to neighbouring states. He also requested that total withdrawal of VAT from furnishing will create “ADVANTAGE MAHARASHTRA” type situation. He then invited Sri Ajit Pawar to visit the Asia's biggest textile market, which he graciously accepted and assured in April to tour and understand the problems of weavers, traders, mathadi's, workers of textile industry. He assured that Textile sector has been the backbone of Maharashtra's growth and lakhs of livelihood depend on it.

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ASSOCIATION NEWS

Press Releases from TEXPROCIL - Mr. Manikam Ramaswami, Chairman The Cotton Textiles Export Promotion Council (TEXPROCIL) Cotton Textile Exports on the Upswing – Need to Maintain Momentum

Cotton Textiles are amongst the select few items in the textile & clothing basket that have shown positive growth in Exports during the current fiscal year 2012-2013. Cotton Textile Export can grow @ 20% during 2013-2014. Current trends in exports indicate that they will surpass the target of US$ 9 billion set for the sector and reach US $ 9.56 billion. Overall growth in exports during fiscal 2012-2013 is expected to be around 9% over the previous year against the backdrop of adverse market conditions in European Union & USA. The textile industry seems to have fully recovered from the losses it has incurred in the previous years when there was a severe volatility in the national and international markets. Capacity expansion is once again beginning to happen.

Robust export growth is very essential for the financial health of the textile industry. The following policy interventions will enable greater increase in exports – (i) Notifying export benefits under Focus Product Scheme & Market Linked Focus Product Scheme at 2 digit level HS Code for Home Textile Sector instead of 6 digit or 8 digit levels. This will also ensure against unwanted exclusions. (ii) Treating “Cut & Sew” products like garment, madeups & bags on par for all export promotion benefits. Just as jewellery exports does not discriminate between 'bangles' and 'necklaces', we feel exports of 'cut and sew' products should not differentiate between garments and home textiles. (iii) Ensure that Indian Cotton is made available at international prices or lower. In this connection Govt. procurement agencies should not hold undue inventories of Cotton and unwittingly contribute to increase in domestic prices to the disadvantage of exports. (iv) Importing cotton at higher International prices would only exacerbate the current account deficits (CAD), at a time when the country needs to increase exports and reduce CAD. Texprocil has requested the Govt. to request CCI and NAFED to start selling their large inventory to remove the artificial shortage and restore international price parity (Domestic is 3-5% higher than intl. prices) which is most important to help maintain export momentum. The Textiles Ministry and the Commerce Ministry have been extremely appreciative of the efforts by Texprocil and have been considering various efforts made by Texprocil positively.

TEXPROCIL welcomes the removal of safeguard duty on import of cotton yarn in to Turkey Turkey has repealed the safeguard duty imposed on import of cotton yarn with effect from 4th August 2011 for a period of 3 years on 31st December 2012. Welcoming this move, Shri Manikam Ramaswami, Chairman, Texprocil complimented the Govt. for its proactive efforts in ensuring that the unjustified measures imposed by Turkey were withdrawn well before their official expiry by August 2014. It may be recalled that these measures were an extension of an earlier safeguard measure imposed by Turkey against the import of cotton yarn for a period of 3 years from 14.07.2008. India had held consultations with Turkey on 12th & 13th March 2012 and impressed upon them about Turkey having breached safeguard provisions of GATT and WTO Agreement on Safeguard Measures by illegally extending the duties after the original period for which the safeguard measure was put in place had expired

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as there was no such provision in the Agreement. The withdrawal of the Safeguard Measures on imports of cotton yarn into Turkey augurs well for exports of cotton yarn from India which had declined from US $ 198 Million in 2007(prior to imposition of Safeguard Measures) to US $ 94.57 Million in 2011. During January – October 2012 imports declined to US $ 20.77 million from US $ 85.30 million i.e. by (-) 75%. In quantity terms imports declined to 4.20 million kgs from 14.85 million kgs during this period. India also slipped to the 4th position in terms of supplier in 2012 from being the largest supplier in 2008. With Turkey being the gateway to Europe, removal of safeguard duties would enable India restore its exports to earlier levels and also increase its market share. The Council has already drawn up plans to participate in the Istanbul Yarn Fair in Turkey being organized from 29th May 2013 to 1st June 2013.

Textile Value Chain | April - June 2013


ASSOCITION NEWS

Press Release from BTRA Technical Workshop on ASTM Test Methods for Geosynthetics

BTRA conducted a one-day technical workshop on 'ASTM Test methods for Geosynthetics' jointly with ASTM Intl, USA at BTRA premises on 22nd January, 2013.

Mr. Sam Allen, VP, TRI/ Environmental, Inc., USA presented a paper on 'GRI-GM13 Specifications along with carious requirements' after a brief introduction on ASTM international and various applications in geosynthetics. He also presented another paper on 'Reinforcement applications using Geogrid and Geotextile growth along with Erosion Control Applications'. Mr. V.K.Patil from BTRA presented a paper on 'Our experience in testing of Geosynthetics'. He shared the experience with testing of productions and problems encountered in testing. He also made various suggestions in test methods that are necessary based on experience and feedback from customers. Around 40 participants attended the workshop and took active interest in discussions. The workshop was well appreciated by participants and thanked BTRA for organising such an event.

Press Release from CITI - Hon'ble Secretary General D.K. Nair

Confederation of Indian Textile Industry (CITI) has requested the government for immediate release of cotton procured by various government agencies through Minimum Support Price (MSP) Operations. In a letter addressed on March 05, 2013 to the Union Minister of Textiles, Shri Anand Sharma, Shri S.V. Arumugam, Chairman, CITI stated that cotton prices had increased steeply because of an artificial shortage of cotton in the market which is created partly by hoarding of cotton by traders and partly by non release of procured cotton by the Cotton Corporation of India (CCI) and other procurement agencies. Shri Arumugam pointed out that the current stock of nearly 25 lakh bales

have been procured through MSP Operations a few weeks ago and cotton prices have increased 12-15% after that. Thus, releasing these quantities now can fetch an impressive profit for the procured agencies. Procuring cotton at MSPs when the market prices were lower gave the requisite protection to cotton farmers. However, holding on to the procured cotton would help only traders who are also hoarding cotton purchased from the farmers earliest at low prices. He further pointed out that a substantial part of the crop has already arrived in the market and therefore, increase in cotton prices now will help farmers only marginally. Shri Arumugam observed that the industry was finding it difficult to pass on the increased cotton prices to the consumers. He has requested Govt. that the procured quantities of cotton should be released immediately which will also force the traders to release cotton held by them.

Press Release from UCMTF

The French Trade Commission-Ubifrance & UCMTF (French Textile Machinery Manufacturers' Association) organized, under the patronage of Embassy of France in India and Office of the Textile Commissioner, Ministry of Textiles, Govt. of India, an Indo-French Seminar on Textiles & Textile Value Chain | April - June 2013

Technical Textiles Machinery on 19th March at New Delhi and 22nd March at Surat. 9 French textile machinery companies (AESA, CALLEBAUT de BLICQUY, DOLLFUS& MULLER, LAROCHE, N. SCHLUMBERGER, ROUSSELET, STÄUBLI, SUPERBA, VERDOl), leader in their sectors, participated in this event which was a big success. More than 100 Indian companies attended this event at Delhi and 200 companies attended the event in Surat. The seminar was inaugurated by H.E. Mr François Richier, Ambassador of France in India. Mr AB Joshi, Textile Commissioner graced the occasion at Surat. A study by Technopak was also released at this occasion. The French delegation also visited the ATIRA centre at Ahmedabad.

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ASSOCIATION NEWS

Indian Yarn Scenario

Shri. Jay Krishna Pathak Bombay Yarn Merchant Association & Exchange ltd. Views of Shri Jay Krishna Pathak Bombay Yarn Merchant Association & Exchange ltd. In recent years, there is not much purchase of yarn in the domestic circuit due to lack of consumption. This is due to the domestic & global markets not doing well. Many spinning mills are facing huge losses because they have been unable to even come close to their production cost. Simultaneously, spinning mills' overheads are increasing due to lower production. There is hardly any market for yarn dealers and brokers for reselling to fabric manufacturers in the domestic market. Many consumers do not have holding capacity of goods and consequently they have to sell the goods at lower rates and suffer tremendous losses. In International market consumption of synthetics is 65% & of cotton is 35%.

Scenario of Cotton Yarn: Currently only China buys cotton yarn from India. USA, Asia, and Europe do not purchase yarn from India but purchase from our neighbouring countries Pakistan and Bangladesh. Scenario of Synthetic Yarn: There is next to nil research and innovation in synthetic yarns in India. India does not export synthetic yarns and manufacturers have to completely depend on local market to sell them. Pricing: Yarn prices are always unstable due to fluctuation in raw material prices. We suggest our buyers to purchase yarns at the right time from the market. We recommend Govt. to control/ stabilize cotton prices because daily fluctuation is not desirable. Brokers/ agents are fighting for their survival. Yarn production cost is increasing as traders are not buying; there is less demand for exports because of packaging & consistent quality. To add to that the wages have increased and there are severe power issues. All these factors increase the cost of production resulting in decrease in demand & causing excess stock at spinning mills. Govt. needs to step up and address these issues before it is too late. Today it is a Buyer's market and it is not favourable for yarn manufacturers, as there is not much demand for domestic as well as international market. We are waiting for the right time to come.

AEPC Seminar 2013 with WGSN Apparel Export Promotion Council (AEPC), the apex Indian body for exports, organized an exceptionally informative Fashion Forecast Seminar in association with WGSN on 1st March, 2013 at Indian Merchants Chamber, Mumbai. The seminar was inaugurated by AEPC's Vice Chairman of Western Region, Shri Ashok G Rajani, to a packed audience.

Mr. Vitthal Jadhav

Director of Pratibha Constructions

Ms. Sara Maggioni, Product Expert and Store Editor of WGSN spoke in length about the hottest trends for the upcoming Autumn/ Winter 2013/14 and Spring/ Summer 2014 seasons. WGSN is the worlds leading fashion and style forecaster. Ms Maggioni spoke about the macro trends for both the seasons giving a comprehensive report on key

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shapes, silhouettes, materials, and colours for womens' wear, mens' wear and kids' wear with colourful slide shows, mood boards with swatches and actual garments. With consumers spending less and the western world in recession, many trends are taking on a craft and DIY element; the essence of fashion is being built upon the foundations of re-invention, re-use, and revamp. She also gave valuable insights on the importance and trends in visual merchandising. AEPC gave opportunity to raise questions to WGSN's expert directly as well as engage in dynamic conversation with industry peers during the networking session. The seminar was well attended by merchandisers, fashion designers, entrepreneurs, market consultants, students, professors, manufactures, buyer/planners, retailers & brand promoters, etc. AEPC'S spirited effort to help the Textile/ Fashion industry to understand global trends and forecasting is laudable and in the right direction for the nascent Indian Fashion Industry. WGSN is an invaluable source of information, from its unrivalled international catwalk coverage to its real-time information sourced on a global basis every season. Subscribers can track trends from the international runway and the latest trade shows. It offers vital information to fasttrack the season's key looks and analyse their potential for fast-response commercial development.

Textile Value Chain | April - June 2013


T-EX- 2013 Jetpur, Gujarat


TRADE SHOW REPORT

L S AUXI CHEM Pvt. Ltd. Presence in Igmatex 2013, Panipat

Inter Continental Industries Presence T-EX 2013 , Jetpur

Textile Value Chain | April - June 2013

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Textile Value Chain | April - June 2013


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April- June 2013 , ANNIVERSARY ISSUE, VOLUME 2, ISSUE 1  

anniversary issue with lots of information, view, interesting interviews , useful information... subscribe...

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