TEXTILE
VALUE CHAIN
www.textilevaluechain.com
February 2016 | Volume 4 | Issue 2| Pages 44 Registered with Registrar of Newspapers under | RNI NO: MAHENG/2012/43707 Postal Registration No. MNE/346/2015-17 published on 5th of every month,TEXTILE VALUE CHAIN posted at Mumbai Patrika Channel Sorting Office,Pantnagar- 75, posting date 17/18 of month
EDITORIAL
Branding in weaving We are living in the world where everyday new retail channel/ products is bombarding our head with information over load by various media. Whole Retail dynamic had changed from last decade. In Textiles, Branding in weaving sector is not only challenged but it is considered as commodity. We divide weaving sector into 2 parts. Commodity Cluster based Weaving / Power loom clusterlike bhiwandi, Ichalkranji, Bhilwara, Panipat etc. This cluster have their own uniqueness in making fabric. Few makes cotton, others make synthetics, few makes home textile / rugs only, others make fabric for garments/ home textiles. Each segment excel in their own way by creating world excellent product. So we require to brand cluster not the individual power loom weavers. This will strengthen not only cluster but also support PM’s “Make in India”campaign of India in textile only be successful if we will support powerloom sector in textiles. Government support for this is very important for branding. As Handloom branding already supported by GOI. Company/ Mill based weaving: this segment already making fabric from years, exporting &fulfilling domestic demand. With individual capacity, they do branding with their own way and lead in market. Branding in Retail is very creative, whether its offline like malls, super-markets , retail chains etc& Online media like amazon, ebay, shopclue, snapdeal, etc. We brand our country as “India Incorporation” in the world by delivery of speech by our honourable Prime Minister, showing rich/diverse culture/ heritage /religion. Showing our country Vibrancy by growing GDP, fastest growth in economy, population etc. So today India is the biggest market for all world brand. Irony is that Though Indian Government is Debt ridden by World Bank, but Indian people are cash rich to spend on world branded products. This is exactly opposite to US economy. We Indian are smart &intelligent because we do not depend upon our government to support our living, but we do hard / smart work and earn for quality of life that we deserve. So, all Indian should have proud on them-selves that we are living in India. Foreign country may give Life time citizenship, many fancy amenities but we always are” Indian” for them, an outsiders..!! So, Please think and grow your country, economy, Industry, Family, your life with a meaning and purpose. Wish you meaningful life ahead…!!!
Ms. Jigna Shah Editor & Publisher
All rights reserved Worldwide; Reproduction of any of the content from this issue is prohibited without explicit written permission of the publisher. Every effort has been made to ensure and present factual and accurate information. The views expressed in the articles published in this magazine are that of the respective authors and not necessarily that of the publisher. Textile Value chain is not responsible for any unlikely errors that might occur or any steps taken based in the information provided herewith.
February 2016
Registered Office Innovative Media and Information Co. 189/5263, Sanmati, Pantnagar, Ghatkopar (East), Mumbai 400075. Maharashtra, INDIA. Tel : +91-22-21026386 Cell: +91-9769442239 Email: info@textilevaluechain.com tvcmedia2012@gmail.com Web: www.textilevaluechain.com
www.textilevaluechain.com
Owner, Publisher, Printer & Editor Ms. Jigna Shah Printed & Processed by her at, Impression Graphics, Gala no.13, Shivai Industrial Estate, Andheri Kurla Road, Sakinaka, Andheri (East), Mumbai 400072, Maharashtra, India.
3
CONTENT COVER STORY: BRANDING IN WEAVING 11- Brand Position – Perception in consumer’s mind by Mr. Rushin Vadhani
FEBRUARY 2016 ISSUE EDITORIAL TEAM Editor & Publisher Ms. Jigna Shah Editorial Advisor Shri V.Y. Tamhane Consulting Editor Mr. Avinash Mayekar Graphic Designer Mr. Anant A. Jogale
INDUSTRY
Mr. Devchand Chheda City Editor - Vyapar ( Janmabhumi Group) Mr. Manohar Samuel President, Birla Cellulose, Grasim Industries Dr. M. K. Talukdar VP, Kusumgar Corporates Mr. Shailendra Pandey VP (Head – Sales and Marketing), Indian Rayon Mr. Ajay Sharma GM RSWM (LNJ Bhilwara Group)
EDUCATION / RESEARCH
Mr. B.V. Doctor HOD knitting, SASMIRA Dr. Ela Dedhia Associate Professor, Nirmala Niketan College Dr. Mangesh D. Teli Professor, Dean ICT Dr. S.K. Chattopadhyay Principal Scientist & Head MPD Dr. Rajan Nachane Retired Scientist, CIRCOT
CONSULTANT / ASSOCIATION
Mr. Shivram Krishnan Senior Textile Advisor Mr. G. Benerjee Management & Industrial Consultant Mr. Uttam Jain Director PDEXCIL; VP of Hindustan Chamber of Commerce Mr. Shiv Kanodia Sec General, Bharat Merchant Chamber Mr. N.D. Mhatre Dy. Director, ITAMMA
12- Powerloom Sector in India by Mr. Avinash Mayekar 13- Innovation and Opportunity in Textiles by Mr. M. L. Jhunjhunwala 14- Recruitment in weaving sector by Mr. Saurabh Agarwal
CORPORATE NEWS 16- Cotton USA ,ColorJet 17- Xstok 18- RSWM, Peter England
TECHNICAL ARTICLE 19- Technological advancement in Viscose fibre by Mr.Sushil Hada, TRADC, Birla Cellulose 21- Enzymes in Textile Processing by Ms. Khushboo & Mrs. Ela Dedhia POST SHOW REPORT 23- Intex South Asia 15- National Garment Fair 22- Kerala B2B Meet MARKET REPORT 24- Cotton report 27- Synthetic Yarn Report
CORPORATE FINANCIAL RESULT 30- Arvind & Indorama 31- Visagar Polytex & Garware Wall Ropes INDUSTRY VISIT 32- Ichalkaranji Market
Advertiser Index Back Page: Raymond Ltd. Back Inside: Birla Cellulose Front Inside: BSL Suiting
Page 10- India ITME 2016
Page 5- SGS Innovation
Page 38- Technotex
Page 6 – ITF
Page 39- Texfair 2016
Page 7- Rabatex
Page 40- Filtech
Page 8- Non Woven Tech
Page 41- SITEX
Page 35- Dynamic Loom Page 36- Morroco Fashion Page 37- Sanjay Plastic
Page 9- RSWM
4
www.textilevaluechain.com
February 2016
ITF
GOES GLOBAL
Abu Dhabi National Exhibition Centre
10AM - 6PM
0RUH WKDQ ,QVWDOODWLRQV
90
90
%DWWHU\ 2SHUDWHG :DUS %HDP &DUULHU
:DUS %HDP &DUULHU
90
90
7RS %HDP &DUULHU :LWK RU :LWKRXW +HDOG )UDPH 6XSSRUW
7ZLQ :DUS %HDP &DUULHU :LWK RU :LWKRXW +HDOG 6XSSRUW
90
:DUS %HDP &DUULHU :LWK +HDOG )UDPH 6XSSRUW
90
*OREDO 3UHVHQFH
&ORWK 5ROO 'RIIHU &DUULHU
5XVVLD
8]EHNLVWDQ
7XUNH\ 9LHWQDP (WKLRSLD
90
90
90
3DOOHW 7UXFN )RU :DUS %HDP
&ORWK 5ROO 6WRFNHU 7UROOH\
%HDP 6WRFNHU
,QGRQHVLD
%UD]LO 0DXULWLXV
( PDLO VDOHV#UDEDWH[ FRP O ZZZ UDEDWH[ FRP 3ORW 1R 5RDG 1R * , ' & .DWKZDGD $KPHGDEDG *XMDUDW ,QGLD
3K )D[
COVER STORY
Brand Positioning – Perception in consumer’s mind Shri Rushin H.Vadhani AGM – Market Research & Product Development Welspun Syntex Ltd
In today’s cluttered world of brands &heavy trigger of marketing & social media campaigns, customers are being confused as which is the right brand to fulfill its need,whether its bought at right price & with said benefits. The medium to buy brands has become easy but to map customers satisfaction has become complex. Moreover with boom of e-commerce business where virtually customers are seeing thousands of brand for same product & catcat
not be in line.
egory becomes tough for the companies to differentiate its brand from competition. Marketing Guru AlRies and Jack Trout in their bestselling book “Positioning - The Battle for Your Mind.” Introduced concept of positioning. Brand Positioning is a marketing strategy that aims to make a brand occupy a distinct position compared to competing brands, in the mind of the customer. Companies apply this strategy either by emphasizing the distinguishing features of their brand (what it is, what it does and how, etc.) or they may try to create a suitable image (inexpensive or premium, utilitarian or luxurious, entry-level or high-end, etc.) through advertising. It’s the perception of the brand that companies create in consumers mind. It is the aggregate perception that market has of a particular company, product or service in relation to their perceptions of the competitors in the same category. An important concept in positioning is that it expects that consumers compare and analyze products in the marketplace, whether based on features of the product itself (quality, multiple uses, etc.), price, and/or packaging and image. It will happen whether or not a company’s management is proactive, reactive or passive about the ongoing process of evolving a position. But a company can positively influence the perceptions through enlightened strategic actions. Brand positioning is ongoing process which company has to align with its mission & vision statements,product lines,target markets,competitor analysis & filter to most striking feature of brand that it will be known & perceived by customers. It needs to create credibility & differentiate itself. Its like company making a brand promise to its target customers & always abide by it. Deviation from the brand deliverables will change the perception of customers & thus brand positioning will
Brand Positioning Strategy Process :
February 2016
www.textilevaluechain.com
In order to create a brand position strategy, company must first identify brand’s uniqueness and determine what differentiates from the competition. • Evaluate current positioning of products in the marketplace w.r.t consumer insight • Mapping of competitors & their values/brand benefits in target market • Understand how each competitor is positioning their brand • Create uniqueness of the brand & compare with competition • Develop a distinct and value-based positioning idea which needs to be realistic & emotional connected with customers. • Design a simple,clear & non confusing brand positioning statement along with brand promise to customers. • Conduct consumer insight to understand the perception pattern of the brand & evaluate whether its in line to crafted positioning strategy. Recently ,Nautica, a global lifestyle brand for modern nautical style, is shifting course with a re-imagined take on its image. Nautica’s new approach to design and marketing celebrates the brand’s roots in New York City and its established nautical heritage through its new message: “Inspired by the sea, designed in the city.” The marketing plan will include advertisements placed across all media platforms, including print, digital, television, and out of home. Print advertisements are set to run in more style-focused men’s and women’s publications, connecting strongly to the brand’s target consumers. Social campaigns and partnerships will align the brand with top influencers, and there will be experiential updates to ecommerce. Guerrilla marketing and in-store events will celebrate the new brand positioning in US stores and key cities around the world.The spirit of the Nautica brand will always remain
11
COVER STORY the same: effortless, classic, and inspired by the sea. To conclude,positioning idea must be clear in terms of both target market and degree of difference in advantages suitable to different segments. The target market should be clearly demarcated and identifiable in terms of demographic or geographic parameters, or a combination of both. When marketers cannot resist offering the product besides targeted market, the clarity of the communication becomes blurred; the value proposition of the products narrows down. This situation can create threat to the product’s existence in a market. Clearness, Constancy, Credibility, and Competitiveness – all 4 Cs are the inputs to successful positioning. Key References:
3) 4) 5) 6) 7) 8)
www.textileworld.com PRNewswire https://en.wikipedia.org/wiki/Positioning_(marketing) www.brandingstrategyinsider.com/brand-positioning Harvard Business Review Magazine Google images 9
1) Al Ries and Jack Trout book “Positioning - The Battle for Your Mind.” 2) www.cultbranding.com
Powerloom Sector in India
Shri Avinash Mayekar
MD, Suvin Advisor Pvt. Ltd. Introduction: Powerloom Industry is the major contributor to Indian Textile industry as 62% of the textiles production in India is done on Powerlooms. Indian Powerloom Industry is equipped with 2.43 million registered looms producing 54,000 sq. mtr fabrics and accountingfor 57.45 lakhs number of direct& indirect employment. It is concentrated in clusters across Erode, Salem, Madurai, Ichalkarnaji, Solapur, Bhiwandi, Bhilwara and Malegaon, among others. The industry produces wide range of fabrics ranging from grey, printed fabric, dyed fabric, cotton fabric, various mix of cotton, synthetic, and other fibres. In fact, Powerloom sector is major contributor in our export earnings. USA, EU, China, UAE, Vietnam, Sri Lanka, Saudi Arabia, the Republic of Korea, Bangladesh, Turkey, Pakistan, and Brazil are some of the major markets for these exports.
Major Powerloom Clusters in India:
Bhiwandi The city that lies 50 km on the northern fringe of Mumbai has 10 lakh power looms that weave nearly one third of the cloth that the country wears, and has 7croresqft of warehouse space. Bhiwandi’s textile industry was promoted by migrant Muslim weavers from Uttar Pradesh and Bihar fleeing the wrath of the British after the 1857 uprising. Nothing much has changed in the way this ageold craft is practiced apart from the industry making the transition from handlooms to power looms. According to Mr.FaizanAzmi, the septuagenarian head of the Maharashtra Powerloom Federation, the umbrella body of the power loom owners “The government has neglected this sector and this town. Its policies are flawed for the simple reason that rather than providing financial help to those who do no not have access to credit they are designed to provide help to bigger players who have easy access to money. These policies are pushing smaller and marginal people out of business.” He further adds “Grey from Bhiwandi, even today, is sent to other centres for further processing into finished fabric.We sell the cloth for
12
anything as low between Rs. 10 to 25 per metre. After processing which happens outside of Bhiwandi, the same cloth can be sold for anything upward of Rs. 150 per metre. In the last 150 years there have been no concrete steps or government help in processing this cloth in the city itself.” Higher operational costs and lack of modernisation have also hurt the industry. Erode: Erode has approximately 3, 00,000 powerlooms. The units make grey and yarn-dyed fabric and catered mainly to the domestic market. Main province for this powerloom is at Vellakoil in KangayamTaluka. 33% of power looms are located in this area and they are in unorganized form and most of them are running the units on job work basis.
Major issues faced by Powerloom sector:
•Poor infrastructure Most of the powerloom clusters face common problems like poor roads, effluent issues, frequent powercuts, non-availability of water, no warehouses& logistic issues etc. •Obsolete Technology Most of the Powerloomclusters in India are still usingobsolete plain looms.Due to outdated technology, looms run at a very low speed and manufacture narrow width fabric. Most of the powerlooms are rejected looms from Mumbai’s textile mills, and other second hand powerlooms. Because of this, loom’s depreciation & maintenance cost is very high. It results in increase inthe operating cost and the overall cost of production also increases. Moreover, the productivity of plain powerloom is very low as compared to automatic, shuttleless and semi-automatic looms. The plain looms can only produce 80 meters of fabric per day whereas the automatic looms are 6 times productive than the plain looms. Moreover, these looms require low depreciation & maintenance cost. The cost of production is also very low as compared to plain looms.
www.textilevaluechain.com
February 2016
COVER STORY •Unskilled labour Most of the labors lack good technical knowledge. They are working on same age old technology. They are not been trained for increasing productivity & efficiency. The labor trainings play very important role here, but most of investors hesitant to invest into labor training programs. •Lack of marketing support Marketing of the powerloom products is one of the main problems which becomes a challenge for the owners of powerloom industry. Mostly, the weavers are uneducated or less educated and are unable to estimate the demand of their products according to the need of the market. They are unaware about economic norms like demand & supply and business ethics. They are dependent on the middlemen to sell their products. The middlemen purchase the products from them at low prices and sell the same at higher prices. The middlemen exploit the powerloom owners, the rates of finished products are not measured on the basis of cost of production but by the bargaining of the middlemen i.e. merchants & commission agents. So the main surplus goes to the middlemen. In terms of numbers, the cloth merchants and commission agents are very less as compared to the powerloom units. The merchants and agents are united while the powerloom owners are dispersed. So, the buyers have more bargaining power and sellers are dependent on the buyers. These middlemen mostly control the situation in their favor to earn significant profit. •Finance The majority of the weavers start their business with the self-finance. They don’t have adequate supply of finance to modernize their powerlooms which will have greater productivity and better quality of fabric. Moreover, they don’t have sufficient capital to pile up the stock of rawmaterial when the prices are low. Because of these, they purchase the yarn at higher prices and sell the cloth at lower prices, which results in losses.
Comprehensive Power loom Cluster Development Scheme:
09 during the 11th Five Year Plan. Subsequently, the Government further announced development of two more Powerloom Mega Clusters at Bhilwara (Rajasthan) in 2009-10 and at Ichalkaranji (Maharashtra) in 2012-13. The scheme is further continued to 12th Five Year Plan.However, the overall limit of CPCDS grant has been decreased to Rs. 500 million during the 12th Plan from the existing Rs. 700 million.The most important change approved in the modified guideline is that the Government to private funding ratio would be 60:40 instead of the existing 40:60.The scheme aims at creating world-class infrastructure, common facilities, technology upgradation, skill development & creating marketing platform. It will help in creating facilities like road networks, uninterrupted water & power supply, common facilities like ETP, captive plants common warehouses, training centres&workers’ hostel. Summary: Out of total 2.43 million registered looms, only 1.05 Lakhs looms are shuttleless. Our Powerloom sector is characterized by smaller units. Most of the powerlooms are currently running on obsolete technology, so the loom speed & production is very low with high maintenance cost. This in turn shrinks the overall profit margins of Powerloom sector. The owners should understand the fact that instead of continuing with age old obsolete technology, they should adopt new shuttle-less technologywhich offers higher speed, low maintenance cost & in turn giving higher profit margins. Most of Powerloom industry players only manufactures for job work where middleman/commission agent is involved, hence they hardly have any control over the pricing. The Powerloom Industry players should understand the fact that, instead of only relying on job work & supplying grey fabric to the industry, they can do value addition & supply finished fabric where profit margins are higher. It is needed them to market their products directly to the markets rather than relying only traders or middleman who eats most of the profits. This will give them control over prices. All Powerloom Industry players should come together & form common platform to address the issues of the industry effectively. 9
In order to overcome above issues, the Ministry of Textiles launched Comprehensive Powerloom Cluster Development Scheme (CPCDS)for development of Powerloom Mega Clusters at Bhiwandi (Maharashtra) and Erode (Tamil Nadu) in year 2008-
INNOVATION and OPPORTUNITIES IN TEXTILES Mr. M.L. Jhunjhunwala, AICWA, President, RSWM Limited & BTRA. Indian Textile industry is on thrash hold of a quantum jump with lot of opportunities which are available for grab. India ‘s domestic textile and clothing market size is $76 billion out of which $56 billion is Apparel and $20 billion is Technical Textile and Home Textiles. This is expected to go up to $315 billion with a CAGR of 14%. India ‘s export market is of the size of $42 billion which will go up to $185 billion showing a CAGR of 11%. India is one if the youngest country among the developing economies. Income levels of Indian household has increased which has spurred spending on textiles . Various state governments gad announced textile industry friendly policies offering attractive in-
February 2016
www.textilevaluechain.com
centives for investment in textiles. Growth of organised retail in India will also help in expansion of our textile industry. Following are key strengths of Indian textile industry: 1. Abundant availability of raw materials like cotton, polyester and viscose and filament yarn as competitive prices. 2. Abundant availability of skilled man power. 3.Young population with high income levels and sending power. 4. Industry friendly Govt.Policies. 5.Availability of good quality power at competitive pricing. 6. India ‘s capability to offer customised products as per need of the customer.
13
COVER STORY Indian Textile industry has opportunities in following areas:
1. Home Textiles: With the boom in housing sector and with rising no of nuclear families demand for Home Textile products like furnishing fabrics, bed linen and Terry towels is increasing rapidly. 2. Lifestyle products: with increasing income levels in Dan consumer is spending heavily on items like party wear, beach wear, sports active wear etc. 3.Automotice Textiles : With rising production of passenger cars there is a growing market for Automotive textiles, safety belts etc. 4. Medical Textiles: As spend on health care is increasing there is tremendous opportunity for Indian textiles. Sophisticated life saving devices like heart valves are made out of Polyester. 5. Technical Textiles : With the effort of Govt and Trade Associations awareness about Technical Textiles had increased and more and more Technical Textiles is getting produced. 6. Women wear: with rising population of working women spending on the women wear is increasing as the working women has to properly dress herself for working on offices and other work places. Besides thus ethnic wear continues to be a part of women’s wardrobe and spending on this is rising. 7. Kids wear: Kids wear is another area with lot of growth op-
portunities. Population of convent and international business school had increased rapidly and spend on school uniform has increased. 8. Defence Textiles; Thus is a very large domestics and globe market which is largely untapped. A large market share of this is still in the hand of China,KOREA and USA. It is high time that Indian textile industry put up required capacities to produce the large volumes required. Besides above new sectors the traditional Apparel market is also growing. More and more young consumers are spending on branded textiles. Large international brands like Jara, M&S, Ikea, Decathlon to name a few has set up their stores in India and they are resorting to more local sourcing. Indian Textile industry has to move up the value chain and enter into manufacture of value added texture products. It has to give more focus on product innovation , supply chain management and be focused on customer needs. Indian consumer is willing to pay provided you satisfy his needs. I have no doubt that ACCHHE DIN are not away from Indian textile industry provided they are more focused on Innovation and value addition. 9
Recruitment Trends In Textile Industry With Relation to Weaving Shri Saurabh Agarwal Voice: 91-22-22829696 / 22829797 Mobile: +919892337579 email: saurabh@netitb.in Web: www.thetalentmart.com
Introduction
FY17 from 64 bn square metres in FY14.
The textile industry is vertically-integrated across the value chain and extends from fibre to fabric to garments. At the same time, it is a highly-fragmented sector, and comprises small-scale, non-integrated spinning, weaving, processing and cloth manufacturing enterprises.
As per data from National Bureau of Statistics, due to steep wage inflation, the average monthly wage cost in China stood at US$ 230 per month in 2013 as against US$ 80 per month in India. Also, India is rich in traditional workers adept at value-adding tasks, which could give Indian companies significant margin advantage. However, India’s inflexible labor laws have been a hindrance to investments in this segment. Unlike in home textiles, garment capacities are highly fragmented and leading Indian textile companies have been slow to ramp up their apparel capacities, despite strong order flows from overseas buyers who are trying to diversify out of China. Ref: https://www.equitymaster.com/research-it/sector-info/textiles/Textiles-Sector-Analysis-Report.asp
Challenges And Future Prospects Challenges faced by the Indian Textile Industry In spite of immense factors fuelling the growth of the Indian textile industry, there are certain challenges faced by the country in terms of scarcity of trained manpower, escalating energy costs, high transportation costs, obsolete labor laws, low level of technology, and lack of economies of scale.
Future Prospects The Indian textiles industry is set for strong growth, buoyed by both strong domestic consumption as well as export demand. The industry is expected to reach US$ 220 billion by 2020. Ref: http://www.cci.in/pdfs/surveys-reports/textile-industry-inindia.pdf According to the Ministry of Textiles, the domestic textile and apparel industry in India is estimated to reach US$ 223 bn by 2021 from US$ 108 bn in 2015. Apparel exports from India is expected to increase to US$ 82 bn by 2021 from US$ 15 bn in 2014. Total cloth production in India is expected to grow to 112 bn square metres by
14
Recruitment Trends As textile industry as whole is a very vast industry. Over the years few manufactures in India have specialised in specific function like spinning, weaving, dyeing etc. There are very few mills in India which are integrated textile mills due to high input cost. Most of the small manufactures take up job work as for them running an integrated mill is not feasible. Even for large mills to cut down their cost they give job work to small manufacturers. Now lets us see how in weaving industry the recruitment take place. As the weaving is one of most difficult technical function of textile industry and hence the person who is employed has to be
www.textilevaluechain.com
February 2016
COVER STORY real tech savvy in this area. For example if a person has worked only on Airjet looms then he may not be suitable for mills working on other types of the looms. Hence in Weaving Industry the choice of person to be recruited has to be too specific unlike in garment industry where specification is given tight importance What basically a weaving industry looks into job profile as follows:1. What is his technical qualifications 2. Which types of machines the candidate worked on 3. How long the candidate has worked on specific machines 4. Which geographical area the candidate has worked on
5. What technical training and what are his innovations with relation to weaving the candidate has acquired
available and hence there it is difficult to specialise in all types of the technology of weaving and hence every candidate in weaving industry takes up specific specialization. This why sometime the integrated textile mills face scarcity in technical weaving candidate like LNJ Bhilwara, BanswaraSyntex, Arvind mills are few integrated mills who require lot of technical candidates. Hence dependence to recruit from consultant is in rise.
Conclusion
To recruit in weaving Industry one must understand the industry very well and also should understand the technical aspect of industry requirement without understanding these aspects it would not only difficult but impossible. Hence and recruitment consultant should be specialised in this particular industry.
As there are many type of weaving methods and machines
POST SHOW REPORT
CMAI’s 62nd National Garment Fair Inaugurated by Dr Kavita Gupta, IAS,Textile Commissioner y
New Textile Policy will be announced soon : Textile Commissioner
The DraftNew Textile Policy is ready & it will be announced soon, said Dr Kavita Gupta,IAS, Textile Commissioner, while Inaugurating the 62nd National Garment Fair organized by The Clothing Manufacturers Association of India (CMAI) on 27th January 2016 at Bombay Exhibition Centre, NSE Complex, Goregaon ( E), Mumbai. Referring tothe Textile Parks she said that 72 Parks have been approved but only 25-30are operating on a full scale whilstthe remaining Parks are lying idle. The Government wants to make these Parks fully operational. Dr Kavita Gupta also said that the Readymade Garment Industry is the highest Employment - Oriented Industry after Agriculture. So the Government is fully supporting the Garment Industry due to its Value addition. The Government is giving 15% Capital Subsidy to the Garment Industry while giving only 10 % Capital Subsidy to the other Sectors of the Textile Industry. Dr Gupta added that with a 13% Share, Technical Textiles is emerging as a Sunrise Sector and the Technical Textiles Industry is projected to grow at 20% Year-On-Year. 283 Exhibitors displaying over 330 Brands Participated in the 62nd National Garment Fair. Approximately 15000 Retailers & Trade Visitors from all over India visited this Two-Day Fair. The Exhibitors at the Fair Exhibited wide range of Men’s wear, Women’s wear, Kids’ wear, Ethnic wear, Intimate wear etc Showcasing their Spring/Summer 2016 Collection. Mr Rahul Mehta,President of CMAI (also President of the International Apparel Federation) whilst Welcoming GST stated that Readymade Garments should be included in the Merit List of GST. Mr Rahul Mehta stated that 2015 wassomewhat an uneventful
February 2016
www.textilevaluechain.com
year with no massive growth or any dramatic fall in the Domestic Market. I see a reasonable 10 – 12% Growth in 2016 in the Overall Domestic Market,with Women’s wear &Kids’ wear growing at a faster rate. Organized Retail will continue to grow & MBOs will continue to be under pressure said Mr Mehta For further information, please contact Mr. Mohan Sadhwani, Executive Director, (Mobile No. +91 9870781295), Email: cmaimumbai@gmail.com, web: www.cmai.in Photoline : DrKavita Gupta, IAS, Textile Commissioner, Inauguratingthe 62nd National Garment Fair, organized by The Clothing Manufacturers Association Of India (CMAI) at Bombay Exhibition Centre, Goregaon, Mumbai. Also seen in the picture is Mr Rahul Mehta – President, CMAI. 9
15
CORPORATE NEWS
COTTON USA OFFERING SOURCING SUPPORTAT TEXWORLD LONDON (January 28, 2016) – COTTON USA will promote U.S. cotton and offer sourcing support to the fashion industry supply chain at its exhibit at Texworld in Paris from February 15-18, 2016, in Hall 2 E029.COTTON USA will provide visitors with comprehensive background information on responsibly-produced U.S. cotton,global cotton market developments, the findings of current market and consumer studies, and its ongoing Sourcing Programs. COTTON USA provides proactive support through its Sourcing Program with respect to procurement issues, which includes
organized sourcing trips to important regions. Visitors also are invited to visit theexhibit to discover the COTTON USA Marketing and Licensing Program and learn about COTTON USA’s collaboration with leading brands and retailers around the world. Cotton is a natural and renewable fiber, and U.S. cotton producers are leading the way in responsible cotton production practices.U.S. cotton has a track record of continuous improvement with respect to water and crop protection product use, and habitat and soil preservation. The U.S. system’s transparency allows for constant monitoring and improvement. The roughly 13,000 U.S. cotton growers comply with stringent U.S. government regulatory requirements and are committed to the principle of continuous improvement. At the COTTON USA exhibit, the textile
trade also will be able to gather information on how the Cotton LEADS™ program, initiated by Australia and the United States, offers manufacturers, brands and retailers a reliable cotton supply chain solution and confidence that the raw material used from these countries is responsibly produced and identified. COTTON USA is a premium trademark ingredient brand thatidentifies products made from U.S. cotton through all stages of processing and marketing. COTTON USA has strong consumer awareness and preference for COTTON USA, with more than 50,000 product lines and 3 billion products having proudly carried the name COTTON USA since 1989. VisitHall 2 E029, to learn more/discuss COTTON USA sourcing! 9
COLORJET Introduces Eco Friendly Digital Textile Printer at GTE 2016 y y y
FABJET GRAND uses Pigment ink entailing water savings FABJET GRAND suitable for home furnishing segment VASTRAJET offers production speeds of 4,000 metres per day
The Indian textile industry as we know it is changing rapidly. The demand for digitally printed fabric is growing and the focus on environmental awareness increasing. The recent “Swachh Bharat Abhiyan” initiative by Government of India has also added in a big way towards ecological sustainability. Environment Sustainability through Greener printing Traditionally, printing through all other inks or whether through screen or digital, a square metre of fabric consumes approxi-
mately 100 litres of water till finishing. Major pollutants in wastewater are highly suspended solids, chemical oxygen demand, acidity etc. This water if not being treated becomes waste and pollutes the environment. This is why we know that it is time for an innovative change in the way industry print on textiles. Challenging the industry status quo is COLORJET’s goal by way of introducing a groundbreaking eco-friendly digital textile printing machine using water based pigment inks at GTE 2016, being held in New Delhi, India in Hall E, Stall E-5.
COLORJET-FABJET GRAND
FABJET GRAND is a commercial grade 3.2 metres or 126 inch wide digital textile printer and uses water based pigment ink.
The FABJET GRAND is suitable for the customised home furnishing textile segment, particularly for producers of home décor products like curtains, bed covers and sofa covers, which are directly printed on cotton and polyester-based fabrics. The printer delivers high productivity enabling high daily printing volumes and outstanding runnability for overnight printing without bending and color deflection. Advantages-FABJET GRAND Advantages of the eco-friendly FABJET GRAND are manifold, which include; y Suitable for all types of fabric, whether natural, synthetic or blends. y Printing using Pigment Inks eliminating the need for any additional process such as pretreatment/coating, steaming and washing steps thus eliminating energy and water consuming steps. y The time required for finishing apparently becomes negligible since no post process after printing is required thus time to market get shortens. y Centralisation of printing sites, close to fashion district or to customers y FABJET GRAND is an investment which creates the economies of scale since no other process is involved and the printing can be done directly on the fabric. Alongside, COLORJET India will also be showcasing its bestselling VASTRAJET; a
16
www.textilevaluechain.com
February 2016
CORPORATE NEWS commercial grade entry level digital textile printer offering production speeds of 4,000 meters per day and thereby meets the normal daily requirements of a textile printing house, while being suitable for natural as well as polyester based fabrics like georgette, moss crepe, weightless, chiffon, etc. The high speed is achieved through specially designed jetting controls to optimize printheads performance, to match the high jetting frequency, the mechanical structure
is excellently designed to handle high speed production and precise dot placements, while the new bundled software offers up to 20 percent on cost saving in inks, thus providing a lower cost of production. “Apart from the price being very competitive, since our digital textile printers are manufactured at a state-of-the-art manufacturing facility in India itself, buyers of our machines are eligible for various subsidies and benefits offered by the Government
of India under EPCG & TUF schemes,” Mr. Smarth Bansal, Brand Manager at COLORJET said. 9
XSTOK.com a B2B online marketplace, announces the launch of its ‘B2B- Badla Business- Kya aap badle?’ , offline engagement program for the Textile Stalwarts y
y
First Event (Roadshow) to be organized on 16th February, 2016 in Mumbai: Mr. Surendra T. Savai will inaugurate the Roadshow XSTOK.com visualizes that in a click, sellers have access to a large universe of buyers and buyers have access to what they need and when they need it
XSTOK.com , a B2B mobile first platform for online buying & selling of surplus goods was founded by Sanjiv Khandelwal and cofounder Mihir Shah in 2015. Currently focused on the textile industry, the platform lists the surplus or the excess stock of some of the best mills across India and has conducted more than 300 auctions in less than 7 months. The platform is aimed at creating a democratic environment where in the buyers have a much wider choice of goods, without the intermediaries direct from the mills naming a few Arvind, Grasim, Donear, Mafatlal, Bombay dyeing, Trident, Welspun, Gokuldas export, Indo Count etc at transparent prices. At the same time, a seller gets a systematic and quick way to sell its inventory, at market determined prices. As the transactions take place online, there is total transparency to the whole deal and costs of middlemen are saved. In order to make the whole experience more inclusive and also to bring in the elements of brick-n-mortar business sensibilities, XSTOK.com is starting a series of ‘XSTOK B2B Badla Business roadshow ’, an interactive and educational buyer/seller engagement program. At the event, XTSOK. com will display the physical samples of the goods to be auctioned. The buyers and the traders will get a chance to touch and feel the samples of the products that are part of the auction at XSTOK.com XSTOK.com will also have live terminals
February 2016
at the venue where in the people can get the feel of mock auctions and clear their doubts about the transaction. ‘XSTOK B2B Badla Business Mumbai Edition roadshow’ will be held on 16th February 2016 at 2:00pm onwards, in Mahajan Hall, M.J.Cloth Market, 250, Sheikh Memon Street, Zaveri Bazar, Mumbai. Mr. Surendra T. Savai, President of Mumbai Textile Merchant’s Mahajan will inaugurate the roadshow. Entry is free for all textile traders, agents, brokers, distributors and manufacturers. “Sanjiv Khandelwal, Founder of XSTOK. com stated that textile is one of the largest and fast growing industries in India, expected to grow from $126B in 2015 to $200B by 2020. India is the second largest producer of textiles and garments in the world with 5% share of global textile and apparel trade. There is significant generation of excess stock (estimated to be $6.3B) - defined as surplus production, cancelled orders, ready inventory, out-of-season, defective or damaged goods, in all phases of textile production from yarn - fabric - garmenting. Being a country with a rich textile history and a country of bargain hunters, surplus are consumed everywhere including Tier 1 – Tier 3 cities. In simple words, XSTOK.com visualizes that in a click, sellers have access to a large universe of buyers and buyers have access to what they need and when they need it. More Choices, Better Prices – for our buyers more choice of suppliers supplying directly to them at better prices and for suppliers more choices of buyers leading to better prices.
Buyer Benefits •
•
Huge Inventory – Get access to materials from leading suppliers of apparels, home textiles, fabrics & yarn • Verified suppliers – All our suppliers are verified plus we ensure thorough quality check on the Products • Transparency in Transactions – Worldclass auction models ensure transparent transactions and best pricing • Stay in the Know – Receive personalized alerts on products and suppliers you care about! • One-stop shop – Platform will facilitate inspection, payments, logistics, financing, etc.
Supplier Benefits •
Largest Universe of Buyers – Access to buyers of all sizes, from all over India in one place • Beyond Verified – All our buyers have undergone a stringent KYC process • Seamless Experience – XSTOK will handle everything from digitizing, listing the inventory, Marketing the product, conducting the auction, to handling logistics and payments • Brand Protection – Total control over the buyer universe and type of auctions • Transparency in Transactions – Worldclass auction models ensure transparent transactions and best pricing • Stay in the Know – Personalized dashboard to keep track of all your transaction in one place
XSTOK - A revolutionary marketplace for the textile industry For further information, please contact, Ms. Tanushree Dutt on Email: tanushree@ xstok.com, Web: www.XSTOK.com 9
Listings from all over India – Largest Universe of Suppliers and Buyers in one place
www.textilevaluechain.com
17
CORPORATE NEWS Another milestone for RSWM, gets SRTEPC Export Awards In recognition of RSWM’s excellent track record in field of exports, the Synthetic and Rayon Textiles Export Promotion Council (SRTEPC), responsible for promotion of export of synthetic textiles from India, has conferred three awards on RSWM for logging remarkable feat in exporting synthetic textiles offshore. The Company received bronze trophy for overall export performance for the year 2014 -15 during which RSWM exported synthetic textiles worth Rs. 584 crore. Retaining the grip over excellence in exporting man-made fibre spun yarn, RSWM got the gold trophy for the year under review when the firm exported man-made fibre spun yarn worth Rs. 408 crore. SRTEPC also conferred silver trophy on the firm for 2014 -15 for logging the export of man-made fibre yarn blended with natural fibre worth Rs. 138 crore. Besides exporting synthetic textiles, RSWM also exports cotton yarn and Denim Fabrics and RSWM’s total exports during the year 2014-15 were to the extent of Rs. 961 crore. It is worth mentioning that RSWM has built one of the most impressive textile manufacturing infrastructures in the country with 11 state-of-the-art manufactur-
ing plants, 5,35,000 spindles, 176 looms, 1,50,000 MTA yarn capacity, 36 MMA fabric capacity, including denim fabric. At a glittering function held in Mumbai recently, the Union Textiles Minister, Mr. Santosh Kumar Gangwar, presented awards to Mr. M. L. Jhunjhunwala, President, RSWM and Mr. P. K. Dhanuka, Senior General Manager, Commercial. Mr. Riju Jhunjhunwala, MD, RSWM Limited, was also present on the occasion along with Ms. Sunaina Tomar, Joint Secretary, Textiles Ministry and Dr. Kavita Gupta, Textile Commissioner. “It is a matter of immense pride for RSWM team that the Textiles Ministry, Government of India, has conferred prestigious SRTEPC export awards on us, again year after year, which only reaffirms our commitment to maintain excellence in our pursuits to achieve one after another milestone. This has been possible thanks to the team efforts of RSWM employees,” said Mr. M. L. Jhunjhunwala, President, RSWM, after receiving the award. RSWM exports its range of yarn and fabric to over 78 countries worldwide. The company holds the prestigious ‘Three Star Trading House’ status and has received ex-
port awards from SRTEPC for consecutively 20 years. RSWM has also received the Rajiv Gandhi National Quality Award three times from the Bureau of Indian Standards (BIS) for three plants and many more quality certifications. RSWM Limited, the flagship Company of the 1 $ billion LNJ Bhilwara Group established in 1961, is one of the largest textile manufacturers in the country. It primarily produces the best quality of yarns like synthetic, blended, mélange, cotton, specialty and value added yarns suitable for suiting, shirting, hosiery, carpet, denim, technical textiles and industrial applications.9
PETER ENGLAND REVOLUTIONIZES RETAIL BUYING WITH PE CONNECT The innovative APP bridges the gap in pre-booking orders with real time inventory management Bangalore, January 2016:Constant connectivity, contextual relevance and a multiscreen world are changing both online and offline shopping. As the digital and in-store experiences blur, it is opening up exciting new possibilities for forward-thinking retailers. In reflection of the growing excitement around convenient buying and applications, fashion labels and investors are creating and embracing newer and more accurate ways of reaching out to their partners and consumers. Launched in India in 1997, Peter England today sells more than 10 million garments every year. Over the last 18 years of its presence in India, the brand has developed the largest apparel Distribution & Retail Network across India with presence in over 2000 stores and 350 cities. This large distribution channel makes the order placement of their products to retail partners tedious and cumbersome. The traditional method of booking orders, in the Indian apparel industry today involves printing all the SKU codes
18
in bulky order books and then handing them over to retailers for recording their orders. Besides being process heavy, expensive and time-consuming, this method cannot make the bookings visible in real-time. There is little scope of revision once a retailer has booked the order. Even if revised, the new orders cannot be made visible in real-time. In an endeavor to revolutionize a business that happens through a traditional way of pre-booking orders during trade shows and manual entry of orders on booking sheets, Peter England piloted and then subsequently launched its one of a kind app – PE Connect, that not only simplifies the process of pre-booking but also updates the partners on last minute booking modifications and target Vs. achievement tracking. With many brands and e-retailers still unable to offer a true seamless booking experience, it is no surprise partners are becoming more and more disengaged. Brands like Peter England today recognize the value of greater partner engagement, which will ultimately help them build trust and promote long term loyalty. The pace of technological advance-
ments within the sector is moving at a rapid rate and it is time for retailers to recognize the need in accuracy of data being punched and processed. The app displays the products with complete color accuracy on the iPad and the catalogue content can be updated quickly and effortlessly. As a result, the brand can save on crucial time per year in preparing its sales materials and is able to adapt instantly to changes. The Key features that drives this sales automation tool is: • Complete digitization of the booking procedure • Reduced use of physical swatches to help meet customer needs on time • Reduced booking time-frame • Ability to book order from more number of retailers during the same time of trade show • Facilitates real time order generation enabling retailers optimize orders during the booking process at the venue 9
www.textilevaluechain.com
February 2016
TECHNICAL ARTICLE
Technological advancement in Viscose fibre Mr. Sushil Hada Research Scientist TRADC, Birla Cellulose
Clothing is the penultimate necessity for mankind after food & shelter. Majority of this clothing requirement is currently been fulfilled by cotton fibres. However, with the increasing consumer affluence, there has been a demand for better quality , high fashion and environment friendly products. Recently, textile industry has noticed several breakthroughs in cellulosic and synthetic fibres backed by advanced technology and innovations. Viscose fibres have come across as a viable solution to cater to the clothing needs of the evolved customer. According to the FIbre Organon, widely read publication on the fibre industry, global fibre consumption has grown at CAGR of 2.7% during 2007 -2013 where as viscose alone has grown at 8.4% CAGR. Which indicates that Viscose is becoming the preferred choice of evolved consumer. Birla Cellulose is the pioneer and leader in producing viscose fibre. Towards meeting the customer and consumer demand for better quality, & new application development , Birla Cellulose TRADC (Textile Research And Development Centre) has constantly innovated and advanced its offerings. Below article provides the details:
Advancement in regenerated fibre -
The major reason for growth of VSF (Viscose Staple Fibre) is investments in R&D in viscose fibre & its version (regenerated cellulose fibre) which has been complemented by technological upgradation and advancements in value chain as well. In yarn making unit, waste %, product yield/fresh packing and ability to produce variety yarn are focus areas and expecting raw material to support to achieve best in these areas. Similarly downstream processing expectation is in the same trend but looking beyond further in term of new application development, functional property advantage and uniqueness in product.
Following table depicts comparative properties of cellulose fibreCotton
Viscose
Modal
Excel
4.20
Electron Microscope Photographs
• Tenacity Dry Wet
(gpd) (gpd)
Ratio wet/dry • Elongation % Moisture Regain • Initial wet modulus gpd
2.80
2.90
3.80
3.20
1.70
2.40
3.50
1.14
0.58
0.63
0.84 13
8
19
15
7.5
13
13
13
1.10
0.40
0.70
1.42
Viscose is amongst the most viable cellulose fibre which compliments & supplements cotton and is also blend friendly with almost all fibres. Viscose is not only bio-degradable and eco-friendly but also the most pure form of cellulose. Birla Cellulose, one of the pioneers in the fibre industry is leading this Viscose revolution.Birla Modal offers excellent fabric feel while Birla Excel is the green fibre with highest tenacity.
February 2016
www.textilevaluechain.com
Advancement in generics of Manmade Cellulose fibre-
Birla Spunshades – are dope dyed viscose fibre where pigments dyes are impregnate into the dope prior to regeneration the fibre . Birla cellulose is the pioneer for this kind of fibre , having about 300 shades producing more than 300 KTPA . Birla Spunshades are not just known for their colour, which not just stays true and bright for years but is eco-friendly as well. Its available in 1.2D to 12 denier fineness & cut length 38 mm to 120 mm range. Birla Spunshades are green fibres, which come with a minimum effluent discharge and significant cost reduction, benefiting the entire value chain. Its accompanied with excellent all-fastness like washing, rubbing, perspiration etc. and is most suitable for uniform fabric , non woven, mélange shade development etc. Eco Friendly Green Fibre – Less Polution to Environment Particulars Water Consumption in ltr/ kg of fabric Power consumption in KW/ kg of fabric Total Process time in hrs Value loss
Piece Dyed viscose
Spun Dyed viscose
Benefit
91
31
60 liter/kg of fabric
16.43
6.87
9.56KW/kg of fabric
10.22 2%
3.8 0.5%
6.42 hrs/batch 1.5% on material cost
Below table indicating cost comparison of spun dyed VSF against piece dyeing Piece Dyed (Black shade) 180-220 GSM Process Sequence Cost Rs./kg Pre washing 2.48 Scouring 2.89 Dyeing & Washing 47.76 Chemical Finishing 5.81 Compaction 2.63 Total 61.57 ETP cost 1.80 Other cost 4.50 Rework & value loss (6%) 5.84 Grand Total 73.71
Spun Dyed viscose ( Black Shade) 180 – 220 GSM Process Sequence Cost Rs./kg Pre washing 2.48 Scouring 2.89 Dyeing & Washing 18.00 Chemical Finishing 5.81 Compaction 2.63 Total 31.81 ETP cost 0.80 Other cost 4.50 Rework & value loss (2.5%) 1.30 Grand Total 38.41
Birla Modal fibre – Usually referred as 2nd generation fibre, has been confirmed as high wet modulus (HMV) fibre which satisfies a minimum value of tenacity in the wet stage of 5% elongation, by the Bureau of International Standard Fibre Association (BISFA). Bean shaped cross section, high wet modulus, and better fibre tenacity, allows Birla Modal fibre to render excellent softness , shade brilliancy and dimensional stability especially for ladies
19
TECHNICAL ARTICLE wear, night wear, undergarment and bed sheet for high class for a fashion product in 100% modal & blend with cotton etc. These superior physical properties make the fabric last longer with and enduring look and feel Birla Excel fibre - With the generic name of Lyocell, this is the 3rd generation fibre produced from solvent spinning process. Solvent is used to dissolve pulp with almost negligible impact on environment. -High wet and dry strength, brilliant lusture & absorbency with a natural source, Birla Excel has it all Birla Excel is most suitable for wash look effect product, home textile, ladies tops and is blend friendly with cotton, linen etc. Advancement in yarn making technology – Spinners always thrive to maximize production while keeping the costs low. Advancement in spinning technology such as open-end spin technology & air jet technology are getting popular amongst the spinners Below table depicts the production pattern for different spin technology. Year 2000-2010 Spinning Technology
Max. Avg
Avg
Year 2010-2015 Max. Avg
Machine Prodn./pos. Machine /day Speed Speed
Avg
Developments under way Max. Avg
Avg
Prodn.(Kg) Prodn.(Kg) Machine Speed /pos./day /pos./day
Ring
16,000 rpm
0.58
17,500
0.66
20,000 rpm
0.75
OE
105,000 RPM
3.6
125,000
4.50
140,000 rpm
5.10
MVS
380 MPM
10.0
450 MPM
12.1
550 MPM
14.8
Consumer expectations of improved pilling and clean surface in knit fabric are addressed by the air jet technology.
Advancement in viscose fabric processing
New Dyeing technology support to reduced pilling formation y y
y
Air Flow dyeing technique: Low ML ratio, reduced cost, less effluent, uniform dyeing specially for knit. E control dyeing technique : Very less water requirement, (1015% of conventional), less effluent, highly uniform dyeing technique for continuous dyeing. Cold Pad Batch Dyeing : Low Cost & less water consumption dyeing techniques for long batches, high yield.
Process technique to improve shrinkage/stability y y y y
Continuous pre treatment range cum relax drier: specially for woven/ knit fabric-low cost, high production. One step Pad-dry-cure technique: for cross linking process. Combi bleach process: for processing of white shade, reduced cycle time, reduced cost. One step process for pretreatment cum chemical finish application : reduced cycle & low cost for spun dyed knit fabric.
Keeping in mind these advancements in fibre spin technology and wet processing, there is lot of scope for textile entrepreneurs , fashion designers, fabricators, etc to enhance business by creating various innovative and new application based products for different segments in home textile, apparel, technical textile, medical textile etc. 9
Enzymes for Textile Processing Mrs. Khushboo Shrimali, Ph.D. Scholar, Shrimati Nathibai Damodarji Thackersaey University, Mumbai Prof. Ela Dedhia, Nirmala Niketan College of Home Science, Mumbai Enzymes are generally globular proteins consisting of long linear chains of amino acids that fold to produce a three-dimensional product. Each unique amino acid sequence produces a specific structure possessing unique properties. Enzymes are extremely efficient and highly specific biocatalysts. The primary sources of enzymes for commercial use are animal tissue, plants and microbes. Enzymes are naturally occurring substances and are often not readily available in sufficient quantities for industrial use. Although to facilitate industrial use, desired enzyme can be produced by isolating microbial strains and optimizing the conditions for growth. There is a large number of microorganisms which produce a variety of enzymes (Boyer, 1971; Fersht, 2007).
Why Enzymes?
The rise in the level of various kinds of pollutions has created a major awareness among the consumers for using eco-friendly products. Governments of many countries have also imposed limitations on release of pollutants. This in turn has resulted in a rise in demand for green and clean processes. One of the sectors of industry that holds a major share in the global pollution is textile industry. Therefore use of enzymes on textiles play a key role as
20
an alternative process for textile processing and have become an integral part of the textile processing industry. The process of use of enzymes is energy saving and does not require any special equipment for heat resistance, pressure or corrosion. Their efficiency, high biodegradability and the mild conditions of working mark their use in a wide range of industrial applications. Enzymes work only on renewable raw materials. Fruit, cereals, milk, fats, cotton, leather and wood are some typical candidates for enzymatic conversion in industry (Uhlig, 1991; Ruttloff, 1994). Out of the 7000 enzymes known, only about 75 are used in the textile industry (Quandt&Kuhl 2001).
Enzyme Classification
Enzymes are biocatalyst and can speed up the chemical process without even being consumed in the process. Usually most enzymes are not reusable after a reaction but some enzymes can be released again and mark their use in another reaction also. For each type of reaction in a cell there is a different enzyme and they are classified into six broad categories namely hydrolytic, oxidising and reducing, synthesising, transferring, lytic and isomerising. The specificity of enzymes is more when compared to other in-
www.textilevaluechain.com
February 2016
TECHNICAL ARTICLE organic catalysts such as acids, bases, metals and metal oxides. The molecule that an enzyme acts on is known as its substrate, which is converted into a product or products. Originally, enzymes were classified on the basis of functions they perform. But later, in 1956 an International Commission on Enzymes (EC) was established by the International Union of Biochemistry (IUB), in consultation with the International Union of Pure and Applied Chemistry (IUPAC), to classify hundreds of enzymes that had been discovered by that point. A standardized terminology was also formed to name the newly discovered enzymes systematically. The commission divided the enzymes into six categories depending on their basic function (Uhlig, 1991; Ruttloff, 1994): • EC1 Oxidoreductases: catalyze oxidation/reduction reactions. • EC2 Transferases: transfer a functional group. • EC3 Hydrolases: catalyze the hydrolysis of various bonds. • EC4 Lyases: cleave various bonds by means other than hydrolysis and oxidation. • EC5 Isomerases: catalyze isomerization changes within a single molecule. • EC6 Ligases: join two molecules with covalent bonds.
Enzymes used in Textiles
Mainly two types of enzymes are used in textile processing industry. The desizing process includes the use of Amylases and in the finishing area cellulases are used for softening, bio-stoning and reducing of pilling propensity for cotton goods. The other enzymes used in the processing of textiles are pectinases, lipases, proteases, catalases, xylanases etc.
Application of enzymes on textiles
In textile industry, there is a wide use of enzymes because of their beneficial nature(Uhlig, 1991; Ruttloff, 1994): • They accelerate reactions, • Act only on specific substrates, • Operate under mild conditions, • Safe and easy to control, • Can replace harsh chemicals • Are biologically degradable i.e. biodegradable The various applications of enzymes in textile area includes the effect of fading of denim and non-denim, bio-scouring, bio-polishing, wool finishing, peroxide removal, decolourization of dyestuff, etc. (Cavaco-Paulo and Gubitz, 2003; Chelikani et al., 2004; Barrett et al., 2003; Sharma, 1993; Nalankilli, 1998; Shenai, 1990).
Enzymes in various textile processes
A wide variety of enzymes have been used on textiles since ages. The current application of enzymatic processing in the textile industry revolves mainly around hydrolases and now to some extentoxidoreductase. The enzymatic desizing of cotton with α-amylases is state-of-the-art since many decades (Marcher et al., 1993). The other cotton pre-treatment and finishing process includes the use of cellulases, pectinases, hemicellulases, lipases and catalases (Meyer-Stork, 2002). The enzymatic degumming of silk is done withsericinases (Gulrajani, 1992), the felt-free-finishing of wool with proteases (Fornelli, 1994) and the softening of jute with cellulases and xylanases (Kundu et al., 1991). When compared with the conventional processing, the enzymatic processing has been proved advantageous like its use in catalytic concentrations at low temperatures and at pH-values near to neutral (Uhlig, 1991; Ruttloff, 1994). Enzymatic Desizing Amylase is a hydrolytic enzyme which catalyses the breakdown
February 2016
www.textilevaluechain.com
of dietary starch to short chain sugars, dextrin and maltose which gives uniform wet processing. The advantage of these enzymes is that they are specific for starch, removing it without damaging to the support fabric. An amylase enzyme can be used for desizing processes at low-temperature (30-60ºC) and optimum pH is 5,5-6,5 (Cavaco-Paulo and Gübitz, 2003). Enzymatic Scouring (Bioscouring) Scouring means the removal of non-cellulosic material present on the surface of the cotton. Enzymescellulase and pectinase are combined and used for Bioscouring. Pectinase destroy the cotton cuticle structure by digesting the pectin and removing the connection between the cuticle and the body of cotton fibre whereas Cellulase destroys the cuticle structure by digesting the primary wall cellulose immediately under the cuticle of cotton. Biological Oxygen Demand (BOD) and Chemical Oxygen Demand (COD) of enzymatic scouring process are 20-45 % as compared to alkaline scouring (100 %). Total Dissolved Solid (TDS) of enzymatic scouring process is 20-50% as compared to alkaline scouring (100%). Enzymatic scouring results in very soft handle compared to harsh feel in alkaline scouring process. It also minimizes health risks hence operators are not exposed to aggressive chemicals (Pawar et al., 2002). Enzymatic Bleaching Cotton bleaching is done to decolourise natural pigments and give a pure white appearance to the fibres. Mainly flavonoids are responsible for the colour of cotton (Hedin et al., 1992; Ardon et al., 1996). The traditional processing of cotton requires high amounts of alkaline chemicals and generate huge quantities of rinse water. Therefore, the conventional bleaching agent hydrogen peroxide can be replaced by an enzymatic bleaching system which would result in a better product quality due to less fibre damage and savings on washing water needed for the removal of hydrogen peroxide. For this procedure, Amyloglucosidases, pectinases, and glucose oxidases are used as they are compatible concerning their active pH and temperature range. Bio polishing A finishing process to improve fabric quality and reduce fuzziness and pilling property of the cellulosic fibre is called Bio polishing. This process involves the action of cellulose enzyme in order to discard micro fibrils of cotton (Stewart, 2005; Cavaco-Paulo, 1998; Cavaco-Paulo et al., 1996; Lenting and Warmoeskerken, 2001). Bio polishing is a finishing process to obtain a cooler, cleaner, lustrous, soft fabric. Enzymatic treatment to denim A fading effect is given to the denim in its finishing process. The conventional method of giving this finish was done using sodium hypochlorite or potassium permanganate was used called as pumice stones (Pedersen and Schneider, 1998). Denim is heavy grade cotton and the dye is mainly adsorbed on the surface of the fibre due to which fading can be achieved without considerable loss of strength.
The use of pumice stone carries some disadvantages with it like: • Pumice stones cause large amount of back-staining. • Pumice stones are required in very large amount. • They cause considerable wear and tear of machine.
The enzymatic finishing of denim fabric is done with cellulase enzyme as it loosens the indigo dye on the surface of denim. This process is known as “Bio-Stonewashing”. A small dose of enzyme can replace several kilograms of pumice stones. This process results in less damage to garment, machine and less pumice dust in
21
TECHNICAL ARTICLE the laundry environment. More recently, some authors showed that laccase was an effective agent for stone-washing effects of denim fabric with and without using a mediator (Campos et al., 2001; Pazarloglu et al., 2005). Conclusion Use of enzymes not only provides us with eco-friendly environment but also saves a lot of money by reducing water and energy consumption thus reducing the cost of production. Enzyme producing companies are also coming up with more new technologies and products in this area. The major limitation in the use of enzyme processing is the high cost of enzymes. This technology can still become a widely and extensively used technology if its cost could be managed. In textile processing the enzyme can be successfully used for preparatory and finishing process like desizing, scouring and bleaching and is appropriate to create a cleaner and greener environment and product too. REFERENCES 1
Ardon, O., Kerem, Z., Hadar, Y.1996, Enhancement of laccase activity in liquid cultures of theligninolytic fungus Pleurotusostreatusby cotton stalk extract, J. Biotechnol., , 51, 201-207 2. Barrett, A.J., Rawlings, N.D., Woessner, J.F.2003, the handbook of proteolytic enzymes, 2nd ed. Academic Press .ISBN 0-12-079610-4 3. Boyer, P.D.1971, The enzymes,3rd ed., Academic Press, Inc., New York, Vol.5 4. Campos, R., Kandelbauer, A., Robra, K.H., Cavaco-Paulo, A., Gubitz, G.M. 2001. Indigo degradation with purified laccases from Trameteshirsutaand Sclerotiumrolfsii. J. Biotechnol. 89, 131-139 5. Cavaco-Paulo, A., Gübitz, G.M. 2003.Textile Processing with Enzymes, Woodhead Publishing Ltd, England, ISBN 0-8493-1776-2 6. Cavaco-Paulo, A., Almedia, L., Bishop, D. 1996.Textile Res. J., 1996,66(5)287-294. 7. Cavaco-Paulo, A. 1998.Carbohydrate Polymers, 37, 273-277
Chelikani, P., Fita, I., Loewen, P.C. 2004, Diversity of structures and proper8. 8. ties among Catalases.Cell. Mol. Life Sci.,61(2),192-208 9. Fersht, A. 2007. Enzyme structure and mechanism, San Francisco: Brenda, W.H., The comprehensive enzyme information system.50–2. ISBN 0-7167-1615-1 10.Hedin, P.A., Jenkis, J.N., Parrot, W.L. 1992. Evaluation of flavonoids in Gossypiumarboretum(L.) cottons as potential source of resistance to tobacco budworm, J. Chem. Ecol.18, 105-114 11 .Fornelli, S., MelliandTextilber. 1994.75. 120-125 12. Gulrajani, M.L.1992. Rev. Prog. Coloration.22. 79-89 13. Kiro Mojsov.2011.Technological-technical Faculty, Probistip,University “GoceDelcev”Stip, Makedonija. APPLICATION OF ENZYMES IN THE TEXTILE INDUSTRY : A REVIEW
II International Congress “Engineering, Ecology and Materials in the Processing Industry”.Jahorina, March 09th to 11th.
1. Kundu, A.B., Ghosh, B.S., Chakrabarti, S.K., Ghosh, B.L. 1991.Textile Res. J.61.720-723 Meyer-Stork, L.S. 2002. 2. Maschen-Industrie.52. 32-40 Nalankilli, G. 1998.Colourage.45(10). 17-19 3. Pawar, S.B., Shah, H.D., Andhorika, G.R. 2002.Man-Made Textiles in India.45(4).pp.133 4.Pazarloglu, N.K., Sariisik, M., Telefoncu, A. 2005.Laccase: production by Trametes. versicolorand application to denim washing process. Biochem.40.1673-1678 5. Pedersen, A.H., Schneider, P.N.N. 1998. US Pat. 5795855 A. US-Patent. 6. Quandt C, Kuhl B. 2001. Enzymatic processes: Operational possibilities and optimization (Enzymes Possibilite´set perspectives). L’Industrie Textile Issue 1334_1335:116_119. 7. Sharma, M. 1993.Colourage. 40(1).13-17 8. Shenai, V.A. 1990. Technology of Fibres: Technology of Textile Processing. Sevak pub.Vol.I .Edition III. 9. Steward, M.A. 2005.Biopolishing Cellulosic Nonwovens, PhD Thesis, North Carolina State University. 10 .Uhlig, H. 1991.Enzyme arbeitenfüruns, Hanser, C., Verlag, Hamburg. 9
Kerala B2B Meet: SMEs receive business enquiries worth Rs 300 Cr
Small scale manufacturers at the Kerala Business-to-Business 2016 received enquiries worth Rs 300 crore as the three-day meet concluded on Saturday. The meet, organized by the Department of Industries & Commerce at CIAL Trade Fair & Exhibition Centre for Small & Medium Enterprises (SMEs), witnessed a total of 7,200 business interactions during the three days. As many as 469 buyers, including 77 delegates from 28 countries, participated in the meet. Also 75 business visitors spot registered and participated. The meet generated over 3,530 business enquiries in three days. As many as 253 enquiries received by SMEs at the Meet are at the final stages of confirmation.
22
A total of 200 SMEs from across Kerala participated in the meet. Food processing sector, which had the largest representation at the meet, received the most number of enquiries at the event. The highest number of international delegates was from Sri Lanka. K-BIP is the nodal agency for the event, which is organised in association with the Directorate of Industries & Commerce, Directorate of Handlooms & Textiles, Kerala State Industrial Development Corporation (KSIDC), Kerala Industrial Infrastructure Development Corporation (Kinfra) and Federation of Indian Chambers of Commerce and Industry (FICCI).
www.textilevaluechain.com
February 2016
POST SHOW REPORT
Intex South Asia 2015 - CreatingStronger Business Ties Between South Asia and the World
South Asia’s only international sourcing show on yarns, apparel fabric, denim fabric and clothing accessorieswas held at the Sri Lanka Exhibition & Convention Centre, Colombo, Sri Lanka, on 16th & 17th November, 2015. Intex South Asia has been designed to strengthen South Asia’s textile and clothing industry, providing access to industry developments, networking opportunities and strategic initiatives to help expand industry and business, all under one roof. 123 exhibitors from 11 countries participated at Intex South Asia, coming from Sri Lanka, India, Singapore, Hong Kong, Thailand, Taiwan, China, Indonesia, Pakistan,Bangladesh and Korea. The organisers of Intex South Asia created the ‘Yarns & Fibres Zone’; ‘Denim World’ and‘Accessories World’ which enthused exhibitors as well as buyers visiting the fair, helping them to connect easily with their target audience. The highlight of the show was the ‘Trends Zone’ which showcased the Spring/Summer 2016 collections. Exhibitors’ comments were positive such as: • “Korean companies exhibiting at Intex were satisfied with the buyer quality, to the extent that 2 Korean companies have already committed for Intex 2016 and KOTRA will form a larger pavilion as well for Intex 2016” –Dan Kim, KOTRA Colombo • “We were gratified by the quality of buyers visiting the fair and rate the Show as 7/10 overall” – Pratik Porwal, Mafatlal Industries Ltd., India • “We are extremely happy with the response we received from the fair, got active leads and are now in talks with 5-6 large companies which we met at Intex South Asia” –Li Yan, Shanghai Deck Lace Weaving Co., Ltd, China. • “The positive response of buyers to the Taiwan TextilePavilion hasconvinced us tobring a big delegation from Taiwan for Intex South Asia 2016’’ – Sean Tsai, Overseas Market Specialist, Taiwan Textile Federation.
•
future.’’ – GeethikaWijetunge, Manager, Hirdaramani, Sri Lanka ‘’I am impressed with the Intex Show in Sri Lanka. The quality of exhibitors as well as their diversity across verticals will keep me coming back.’’ – TebogoLegodi, Sourcing Manager, Edcon, South Africa
Exhibitors were satisfied with the quality of buyers at the exhibition. They were pleased that most of the buyers visitingIntex South Asia were serious, professional buyers who knew exactly what they wanted and pursued inquiries accordingly. The exhibitors’ overall experience was positive with quality leads being generated during and after the show. Intex South Asia 2015 was inaugurated by Chief Guest Hon’ble SujeewaSenasinghe, State Minister of Development Strategies & International Trade. Guests of Honour wereMr. ArindamBagchi, Deputy High Commissioner of India and Ms. Indira Malwatte, Chairperson & Chief Executive, EDB. Intex South Asia 2015 was ably supported by Apex bodies from across South Asia and South East Asia. For further information on Intex South Asia 2015 you can visit: www.intexfair.com 9
Buyers from 13 countries visited Intex South Asia. They came from India, Sri Lanka, China, Pakistan, Hong Kong, Bangladesh, Korea, Malaysia, Thailand, Germany, South Africa, UK and Russia. The principal reasons to visit the event were to see the industry’s innovative products and trends, meet trade partners/suppliers and network to find and connect with new suppliers. Top buyers who attended the fair in Colombo included Brandix, Hiradamani, MAS Holding, Next UK, Gap USA, Speedo, Decathlon, Max, Intraport UK, Columbia Sportswear, New Universe UK, Styku USA, Etam Sri Lanka, Arugam-Bay Sri Lanka, Eskimo, George UK and Eskimoto name a few. Buyers testimonials also gave an insight into how well the show was received such as: • “I visited Intex to find quality suppliers and was pleased to find some well-known brands present as well as some new ones I did not know. I met with 10 suppliers of which two were short listed. It was also nice to see some new innovations.” - Janet Best, Natific, UK • ‘’We found good quality suppliers at the show and short listed a few from India and other regions to work together in the near
February 2016
www.textilevaluechain.com
23
COTTON REPORT
INDIA Arrivals: (as on date: 02-02-2016)
Mr. Manish Daga MD, COTTON GURU cottongurutm@gmail.com State wise Arrivals
2014-15 (Lac bales) 02.02.2015
2015-16 (Lac bales) 02.02.2016
Punjab
8.57
3.97
Haryana
14.39
7.74
Rajasthan
12.40
10.65
Gujarat
51.56
42.01
Maharashtra
43.35
36.72
M. P.
10.06
11.50
Telangana
41.70
33.75
A. P.
17.60
9.75
Karnataka
13.95
9.40
Orissa
1.60
1.70
Other
2.50
0.45
217.68
167.64
Total
period extends well into February, USDA is not expected to lower its estimate until March. However, farmers are of the opinion that due to the extensive and severe drought and crop diseases, harvesting has essentially been completed. Domestic buying is steady with most spinning mills buying on as per current requirement. Export activity has picked up recently following the fall in cotton prices and appreciation of the USD against the INR. India is reported to have exported 4.5 million bales upto 15.01.2016.
Yarn & Apparel Exports:
Since import yarn prices were high and domestic yarn prices were declining, China’s yarn imports from India remained extreme-
Weather Report:
While the common man still takes India Meteorological Department (IMD)’s forecasts with a pinch of salt, 93 % of the farmers surveyed by the National Council of Applied Economic Research (NCAER) found the weather agency’s agriculture-specific service reliable. And, 95 % think IMD has improved in the past 4 years. According to the latest survey, although only 11.5 million farmers out of the total 120 million farmer families receive the crop and weather advisories through SMS, if expanded, it has huge potential to improve their incomes.
Domestic Market Summary:
In his latest report, Mr. O. A. Cleveland recollects the quote “Short Crops Have Long Tails” (that is, after the harvest of a smaller-than-expected crop, the market tends to trend lower and/or remain essentially flat). The Indian government and the domestic textile industry expect the Indian crop between 26 and 26.75 million bales, below the USDA estimate of 28 million. As the traditional Indian harvesting
24
ly depressed in December, by contrast with the surge in the same period a year ago. Market share of Indian cotton yarn is eroded by Vietnamese cotton yarn in recent years. Given current forward cotton yarn price, Indian cotton yarn has become uncompetitive, which can be reflected in import volume in the fourth quarter of 2015. Price of Indian and Vietnamese cotton yarn 32s is almost similar in terms of USD, mainly staying around $2.40-2.42/kg for 32s for airjet. But the advantage of Vietnamese cotton yarn becomes obvious once we consider the import duty, Price spread between Vietnamese 32s for rapier and Indian 32S for air-jet is around1200yuan/mt. Besides, price gap of Vietnamese and Indian 32s for air-jet is around 800yuan/mt.
International Market:
Global cotton prices generally remain on the weak side due to
www.textilevaluechain.com
February 2016
COTTON REPORT Pakistani mills are continuing to import cotton to meet their deficits, primarily from India and China. Imports into Pakistan this year may be around 3.5 million bales. The Pakistan Cotton Ginners Association has opposed the proposal on waiving off duty and tax on the import of cotton from India.
Uzbekistan:
massive quantities of cotton lying unsold in Chinese stocks and the strength of the US dollars. Chances are that cotton prices around the world will remain subdued due to further weakening of the global economy and softening of the commodities complex universally. Meanwhile, cotton remains under significant pressure from lower synthetic fibre prices. Falling crude oil markets have pushed down synthetic fibre prices by some 30 % since December 2014 and look set to keep weakening this year.
China:
According to Agweek.com and Reuters, China’s government is consulting with the country’s textile and cotton industry regarding possible plans to sell some of its 11 million ton cotton stockpile. This move could drive Chinese domestic prices lower and continue to reduce the import of cotton. The government is under pressure to sell its aging stockpile, which degrades over time and is racking up inventory costs. An auction last year sold less than 64,000 tons – well below the target of 1 million tons – as the government-set prices did not attract bids. * China imports around 188,000 tons of cotton in Dec 2015, the lowest in 3 years. * Total 2015 cotton imports are about 1.48 million tons, the lowest in 9 years. * The industry is forecasting a further decline in imports for 2016, after domestic prices fell to a new low earlier this month on expectations that Beijing could sell off some of its massive stockpile at a discount. * The USDA estimates Chinese cotton imports for 2015-16 at 1.2 million tons, but others believe the numbers could be lower. * The devaluation of the yuan currency may bring some relief for textile exporters, but the sector also faces higher labour costs.
Vietnam:
Currently, spinners in Vietnam witness good orders and many spinners are running at full capacity. Low-priced cotton auction will be a double-edged sword for Vietnamese cotton yarn. Vietnamese cotton yarn needs to find a balanced position between Indian and Chinese cotton yarns. However, the time and price of Chinese cotton auction is still uncertain, so it is hard to predict whether import of Vietnamese cotton yarn can keep rising or not in long run based on tariff free edge. Vietnam Jan Imports report Cotton at 90,000 tons of $140.1 million, Up 8.2% from last year, Fabric Import Valued at $850 million, Up 9.8% and Yarn import at 65,000 tons of $116.7 million, down 13.3%.
Pakistan:
The ready cotton market is witnessing a steady and stable condition due to regular mills buying in recent weeks. Due to a massive fall in the domestic cotton output during the current season in Pakistan (August 2015- July 2016) of more than 5 million bales leaving the output to be even less than 10 million domestic size bales and reducing the quality of cotton to lower grades in a large way, now lint prices are increasing as leading mills are hunting for quality.
February 2016
www.textilevaluechain.com
The President Islam Karimov said that Uzbekistan will cut its cotton output by 10% over the next 5 years, as production is switched to vegetable farming. Production in Uzbekistan, the world’s 5th ranked cotton producer, will fall by 0.5m tons to 3.0m tons by 2020. Falling cotton prices, and a drive toward self-sufficiency in food stocks, is encouraging a shift away from cotton. The government has already achieved its goal of wheat self-sufficiency, and now attention is turning to fruit, vegetable and rice production.
US:
US Cotton futures fell during last week to touch their lowest level in nearly 4 months, bucking an overall positive trend across commodities as investors remained concerned about a potential auction of China’s massive stockpile.
USDA:
For 2015/16, world production is lowered substantially, mostly due to changes in Pakistan, India, and China. Consumption is marginally lower. Trade is raised about 700,000 bales. U.S. production and use are lowered slightly, while ending stocks are raised. The U.S. season-average farm price is projected unchanged at 59 cents/ pound.
ICAC:
Polyester Prices Hurting Cotton’s Market Share When cotton prices dropped at the start of 2014/15, the gap between international cotton prices, as represented by the Cotlook A index, and polyester prices in China, which accounts for 72% of world polyester production, narrowed significantly and greatly improved the competitiveness of cotton. However, this only lasted for a few months as polyester prices continued to drop while cotton prices stabilized. In 2015/16, that gap has continued to widen, with polyester prices falling from 52 cts/lb in August 2015 to 43 cts/lb in January 2016, averaging 48 cents/lb during the first half of 2015/16. During the same period, the Cotlook A Index has averaged 70 cents/ lb, ranging from a high of 74 cents/lb to a low of 66 cents/lb. The ongoing drop in polyester prices cuts into cotton’s market share, particularly in China where polyester has been favored over cotton in recent seasons. Cotton consumption in China is forecast down 5% to 7.1 million tons in 2015/16, though it still remains the world’s largest consumer of cotton. World cotton consumption in 2015/16 is projected down 1% to 24.1 million tons. India’s consumption is expected to increase by 2% to 5.5 million tons in 2015/16 while Pakistan’s decreases by 12% to 2.2 million tons. Consumption in Turkey, the fourth largest, will likely remain stable at 1.5 million tons, while consumption in Vietnam and Bangladesh are expected to grow by 22% to 1.1 million tons and 13% to 1.1 million tons, respectively. Given the fall in consumption and lower domestic cotton prices, China’s imports are expected to fall by 40% to 1.08 million tons. However, if the pace of its imports remains steady, then Vietnam may overtake China as the largest importer of cotton in 2015/16. Cotton imports by Vietnam for the first four months of 2015/16 totaled 327,000 tons, while those by China totaled 247,000 tons. 2015/16 cotton imports by Vietnam are projected up 17% to 1.1 million tons. Imports by Bangladesh are forecast to increase by 12% to 1.08 million tons. Consumption in both Vietnam and Bangladesh is increasing steadily, due to lower production costs, but both produce very little cotton, and instead must rely on imports to meet demand.
25
COTTON REPORT World ending stocks are projected to decrease by 7% to 20.5 million tons, which represents about 81% of world cotton consumption in 2015/16. The reduction in stocks this season is attributed to the sharp drop in world cotton production rather than gains in consumption. 2015/16 world cotton production is forecast down 14% to 22.5 million tons. In 2015/16, world cotton area contracted by 9%, to 31.1 million hectares, in response to relatively low cotton prices. Adverse weather and increased pest pressure contributed to a decrease in world average yield of 6%, to 723 kg/ha. Of the top 10 producing countries, China, the United States and Pakistan saw the largest decreases in volume.
WORLD COTTON SUPPLY AND DISTRIBUTION
* The price projection for 2015/16 is based on the ending stocks/ consumption ratio in the world-less-China in 2013/14 (estimate),in 2014/15 (estimate) and in 2015/16 (projection), on the ratio of Chinese net imports to world imports in 2014/15 (estimate) and 2015/16 (projection). The price projection is the mid-point of the 95% confidence interval: 65 cts/lb to 81 cts/lb.
CAB Report CAB S &D Extimates 2014/15 2015/16 Lakh Bales 33 52 380 352 14.39 11 427.39 415
Op. Stock Production Import Total Supply Demand 278.55 Mill Consumption 26.28 S.S.I Consumption 12.84 Non Mill 57.72 Consumption Total Demand 375.39 Closing Stock 52 Data as at February 2, 2016
Cotton Association of India (CAI)
Till December 31, 2015, CAI has estimated the total cotton availability for year 2015-16 at 44.97 million bales that includes this year’s production of 35.7 million bales, a stock of 7.87 million bales of last year, and 1.4 million bales imported cotton. It means the country can expect better export performance this year. Since the domestic consumption is just about 31.5 million bales, CAI has put the surplus at 13.47 million bales. The CAI does not have the figure of last year’s surplus.
Technical Reports:
1. ICE COTTON: ICE Cotton continues to remain locked in sideways and choppy 57-68 range for past year or so. Time spent in forming base gives a directional bias that Cotton is bottoming out and may enter Bull Market again. Confirmation of directional bull market comes when it is able to move past hurdle of 68 areas. Similarly continuation of Bear Market is confirmed below 57 areas. Till the time breakout or breakdown comes, Traders can sell closer to 68 with stops and buy closer to 57 with stops for short to medium term. Key Supports 59.72-58.48-57.05-54.97-54.00, Key Resistances 62.93-65.23-68.3070.30-71.49-73.79.
275 25 10 70 380 35
CAB Crop Estimate State wise Punjab Haryana Rajasthan
2014-15 (Lac bales) 12.00 20.50 17.00
2015-16 (Lac bales) 9.00 17.00 16.00
Gujarat Maharashtra M. P. Telangana
108.00 78.00 18.00 57.00
101.0 77.00 18.00 58.00
A. P. Karnataka Tamilnadu Orissa Other
27.00 31.50 5.00 4.00 2.00
25.00 20.00 5.00 4.00 2.00
Total
380
352
26
2. MCX COTTON MCX Cotton is outperforming ICE Cotton since August 2015, some of the strength can be attributed to weakness of Indian Rupee against US Dollar. Though in uptrend in short term, MCX Cotton is facing resistance around 16700 areas. As & when 1670016900 hurdle is crossed, sharp 2000 rupee bounce is on the cards. MCX Cotton still remains buy in dips for short term. Also all dips to 15500-15300 seems a buying opportunity for long investors to accumulate cotton for 6-9 months. Key Supports 16030-15730-15530-15350, Key Resistances 16710-16890-1725017550-18000. 9
www.textilevaluechain.com
February 2016
SYNTHETIC YARN REPORT
YnFx Exporwatch report - January 2016
India’s Overall export shrinks in December
India’s merchandise exports fell in December 2015 valued at US$22.3 billion (INR148,491 crore) down 14.7 per cent (down 9.5 per cent in INR terms) compared to the levels in December 2014. Total exports for the period AprilDecember 2015-16 was down 18 per cent at US$196.6 billion (INR1,273,323 crore, down 12.7 per cent) over the same period last year. Imports in December 2015 were valued at US$33.9 billion (INR226,168 crore) and were 3.8 per cent lower (2 per cent higher in INR terms) over the level of imports in December 2014. Thus, cumulative imports for the period April-December 2015-16 was US$295.81 billion, down 15.8 per cent (INR1,915,849 crore, down 10.3 per cent) over the same period last year. The fall in imports was largely due to 33 per cent plunge in crude oil imports in December 2015 and 41.6 per cent drop during April-December 2015-16. In similar comparison, non-oil imports were 7.6 per cent higher in December 2015 and 3.1 per cent lower in April-December, 2015-16. As a result, trade deficit for the period April-December 2015-16 was at US$99.2 billion, which was lower than the deficit of US$111.6 billion in April-December 2014-15.
New textile policy to boost exports soon
The Minister of State for Textiles (Independent charge), Santosh Gangwar, after inaugurating the India International Garment Fair (IIGF) organized by the Apparel Export Promotion Council on Wednesday said that the draft policy of the long awaited new textile policy is ready and discussions are on. They hope to place it before the Union Cabinet in a month’s time. The government had initially planned to ready the new textile policy after the announcement of the Union Budget last year, but it got stuck amid discussions with other ministries, including Finance and Labour, over financial incentives and relaxation in regulations were delayed. The new textile policy that aims to create 35 million jobs and boost exports to over $300 billion over the next decade is likely to be announced within the next few months. Gangwar further added saying that the textile industry would greatly benefit from the recently announced ‘Amended Technology Upgradation Fund Scheme,’ under which apparel, garment and technical textiles will get 15 percent subsidy on capital investment, subject to a ceiling of Rs. 30 crore over a period of five years. Textile Secretary Rashmi Verma said that the process of settlement of dues related to the old cases has started. She also said that the Garment exports posted a 5 percent
February 2016
www.textilevaluechain.com
growth in December 2015 to $1.44 billion even as overall exports dipped 14.75 percent. In the April-December 2015-16 period, exports of ready-made garments increased 2.8 per cent to $12.47 billion. Biggest textile park coming up in Warangal K. Chandrasekhar Rao, Chief Minister of Telangana, announced that the proposed ‘cotton-to-garment’ park coming up in Telangana’s Warangal town to be set up in an area of 2000-3000 acres will be India’s biggest textile park and it will cover all segments. While, the textile parks in different parts of the country like Solapur, Tirupur and Surat were engaged in manufacturing only specific categories of garments. The Warangal district collector has already released Rs.100 crore for acquiring land for the textile cluster. The government would promote the park in collaboration with various companies. Some companies have already come forward. US procurement legislation to hit order books The US legislation for federal procurement that demands sourcing of raw materials from the designated countries or domestic suppliers to hit India’s textile exports. In this regard, Federation of Indian Chamber of Commerce and Industry (FICCI) the voice of India’s business and industry has urged the Government of India to take up this issue either bilaterally or multilaterally with the US government to resolve the issue amicably. The industry body submitted a representation to the Ministry of Textiles and Ministry of Commerce & Industry stated that the Indian textile exporters have reported that the buyers or companies based in the US supplying to their government departments and agencies have halted sourcing raw materials from countries like India, which are not part of the General Services Administration (GSA) Schedule Contract.
China cuts yarn Import from INDIA
Spun yarn exports in December 2015 were down by 11.5 per cent in volume terms and declined 18.8 per cent in value term. Spun yarn (all kinds) shipments were at 119 million kg worth US$321.5 million or INR2,127 crore, implying per unit realisation of US$2.70 per kg. This was up US cent 1 from previous month and down US cents 24 from December 2014. In China, yarn import prices were less significantly high in yuan terms, with benchmark 32s cotton being however offered at the same price level than on the domestic and import markets. As a result, China’s yarn imports remained extremely depressed in December, by contrast with the surge in the same period a year ago.
27
SYNTHETIC YARN REPORT During December, 88 countries imported spun yarn from India, with China accounting for 27.8 per cent of the total value with imports plunging 32.9 per cent in terms of volume YoY and declining 39.5 per cent in value YoY. Bangladesh, the second largest importer of spun yarns, accounted for around 18 per cent of all spun yarn exported from India. However, export to Bangladesh increased 66.4 per cent in volumes and 47 per cent in value. Egypt was the third largest importer of spun yarns, which saw volume declining 12.5 per cent and value by 22.8 per cent. These three top importers together accounted for 51 per cent of all spun yarn exported from India in December. Also, spun yarn imports from Pakistan surged in December which was valued at 14.56 million, up 58.8 per cent YoY, since the cotton production was sharply down in 2015. Cotton yarn export was at 98.8 million kgs in December with 76 countries importing yarn worth US$266 million (INR1,760 crore) in December 2015. The average unit price realization was at US$2.69 a kg, unchanged from previous month and US cents 26 down from the same month a year ago. Bangladesh was the largest importer of cotton yarn from India in December, followed by Pakistan and Portugal. The top three together accounted for more than 57 per cent of cotton yarn with combined volume at 59.3 million kg worth US$152.2 million. Their respective unit price realization was US$2.39 a kg, US$2.81 a kg and US$3.03 a kg. Portugal, Turkey, Thailand, Belgium and South Africa were among the fastest growing markets for cotton yarn, and accounted for 7.1 per cent of total cotton yarn export value. Nine new destinations were added for cotton yarn export, of which, Singapore, Costa Rica, Paraguay, Mozambique and Estonia were the major ones. Nine countries did not import any cotton yarn from India, including Chile, Panama, El Salvador, Syria and Mexico. They had imported yarns worth US$0.73 million in December 2014. In December 2015, significant deceleration was seen in export to Slovenia, Brazil, Cambodia, Lebanon, Serbia and Montenegro. Combed cotton yarn accounted for 65 per cent of cotton yarn exported in December with volumes at 58.5 million kgs worth US$173.3 million. Carded yarn export was at 31.7 million kg. Their respective unit value realization was US$2.97 per kg and US$2.33 per kg. Open ended yarn export was at 5.7 million kg at an average price of US$1.63 a kg.
Manmade fibre yarn export Declines
100 man-made fibre yarns export was at 6.1 million kg in December, comprising 2.90 million kg of polyester yarn, 2.53 million kg of viscose yarn and 0.68 million kg of acrylic yarn. Polyester yarn exports were down 23.1 per cent in value while viscose yarn exports were up 6.3 per cent during the month. Acrylic yarn exports saw a drastic plunge of 57 per cent in December. Unit price realization was down US cents 39 a kg for polyester from a year ago and that of viscose yarn was down US cents 3 a kg. Acrylic yarn unit price realization was up US cents 56 a kg year on year basis. Polyester spun yarns were exported to 45 countries in December aggregating US$6.52 million with a unit price realization averaging US$2.24 a kg. A total of 2.9 million kg was exported, of which, 14.7 per cent was shipped by Turkey alone. Five new destinations were found for polyester yarn this December, of which, Syria, Russia, Norway and Lebanon were the major ones. Viscose yarn export was valued at US$7.68 million or INR51 crore and volume at 2.53 million kg, implying average unit price realization of US$3.04 per kg. They were exported to 19 countries with Bangladesh at the top worth US$2.06 million. It was followed by Belgium with imports worth US$1.67 million. Both these markets
28
accounted for 48 per cent of all viscose yarn exported in December. Bangladesh, Italy, USA and Algeria were the fastest growing markets for viscose yarns while Portugal, Mauritius, China, Guatemala and South Korea were the new major markets. Spain, Brazil, Tunisia, Vietnam and Poland were the major ones among the 14 countries that did not import any viscose yarns during the month. Blended yarns export volume up, value down Blended spun yarns export was worth US$38.9 million in December, down 6 per cent YoY while volumes were up 1.7 per cent to 14.2 million kg. During the month, 7.5 million kg of PC yarns was exported worth US$18.9 million. Another 4.6 million kg of PV yarns valued at US$11.9 million were exported. Acrylic/cotton yarn prices were down 17.7 per cent YoY. In December, 1.2 million kg of other blend of yarns were exported worth US$6.05 million. Egypt and Bangladesh were the largest importers of PC yarn from India in December followed by Morocco. Bangladesh, Argentina, Honduras and Spain were the fastest growing markets for PC yarns while Portugal significantly reduced its import of PC yarns from India. Brazil and Chile were among the 8 countries that did not import any PC yarns from India during December. Latvia was the major destination among the 7 new markets found in December. In December, US$11.9 million worth of PV yarns were exported from India with volumes at 4.6 million kgs. Turkey and Iran continued to be largest importers of PV yarns from India with total volume at 3.48 million kg worth at US$8.7 million. Tunisia and Russia were the new major markets for PV yarn while 8 countries did not import any PV yarn during the month, including the major ones like Morocco, Chile and Thailand.
Filament yarns export continues downtrend
In December, all types of filament yarns export aggregated 33.9 million kg, down 25.5 per cent YoY while volumes declined 35.6 per cent to US$54.7 million. Filament yarns include polyester, nylon, polypropylene and viscose filament yarns and were exported to 73 countries during the month. More than 89 per cent of filament yarns were of polyester, of which, DTYs were the largest at 72.6 per cent. In December, 32.4 million kg of polyester filament yarns were exported worth US$48.7 million. Brazil and Turkey continued to be the major importers of polyester filament yarns, followed by Bangladesh. The three together accounted for 45 per cent of polyester filament yarn exports. Brazil was also major importer of polyester DTYs and Turkey was major importer of PFYs. Sri Lanka was the major importer of nylon filament yarn in December with volumes at 51,000 kg worth US$0.27 million. In value terms, USA and United Arab Emirates were the other largest markets for nylon filament in December, worth US$0.43 million. Polypropylene filament yarns were exported to 22 countries in December with volumes at 212,000 kg worth US$0.41 million. Tanzania was the major importer of PP yarns. Mexico and Bangladesh were the other major importers of PP filament yarns in December. About 1 million kg of viscose filament yarns were exported in December to 22 countries from India valued at US$4.2 million. During the month, 194,000 kg of VFYs were exported to Japan. It was followed by Turkey and Germany.
Cotton export grows better
Cotton fibre export was at 272 million kg or 1,605,140 bales (of 170 kg each) in December which was up 60.5 per cent YoY and was valued at US$391.8 million, up 46.5 per cent. Pakistan and Bangladesh were the largest importers of cotton with combined volumes at 1,138,880 bales amongst the 21 countries that imported cotton
www.textilevaluechain.com
February 2016
SYNTHETIC YARN REPORT from India. Exports of manmade fibre were at 16 million kg, worth US$23.5 million. These included ASF, PSF, VSF and PPSF. USA and Italy were the largest importers of PSF during December while Bangladesh and China were the major importer of VSF, in similar comparison. Vietnam was the dominant buyer of ASF. Overall Trends in December 2015
Table 1.1. Trends in Spun Yarn Exports
May-15
100,985
299.7
2.97
1.8
-10.8
-12.4
Jun-15
108,047
319.9
2.96
27.8
9.7
-14.2
Jul-15
118,091
345.6
2.93
34.8
16.2
-13.8
Aug-15
116,930
335.0
2.86
21.5
3.4
-14.9
Sep-15
118,089
332.7
2.82
8.3
-5.8
-13.0
Oct-15
112,220
310.8
2.77
4.5
-9.3
-13.2
Nov-15
105,492
283.5
2.69
-9.8
-18.7
-9.9
Dec-15
119,161
321.5
2.70
-11.5
-18.8
-8.2
3,027.4
3.23
Volume
Value
Unit value
% YoY
‘000 Kgs
Mln US$
$/kg
Volume
Value
Unit value
Apr-Dec 15
936,824
Dec-14
134,696
396.0
2.94
8.5
-4.5
-12.0
Apr-Dec 16
996,839
2,835.6
2.84
6.4
-6.3
-12.0
Jan-15
101,127
303.0
3.00
-22.5
-29.8
-9.3
2014-15
1,275,196
4,023.5
3.16
-14.5
-21.3
-8.0
Feb-15
122,714
355.5
2.90
4.9
-9.3
-13.5
Mar-15
114,523
335.8
2.93
-10.6
-22.8
-13.6
Apr-15
97,824
286.9
2.93
-3.3
-15.1
-12.2
Contact
Vidya Vadgaonkar Email : Vidya@ynfx.com Tel : +91 22 66291122 Mobile : +91 9619 293725 9
“Gurgaon has the Potential to become an Apparel Hub like Banaras & Surat” - Additional Chief Secretary, Govt. of Haryana. Key Highlights · Discussion on attracting investments in the Apparel Sector through Happening Haryana : Global Investor’s Summit · Skilling and Employing: Priority of the Govt. in the Apparel Sector. · Setting up of more Industrial Training Institutes (ITI’s) is the need of the hour. Apparel Export Promotion Council (AEPC) hosted the Government Officials of Haryana along with Apparel Industry Experts to discuss the scope of Investment in Apparel Industry as the industry is gearing up for more investment. The discussion was held with respect to the upcoming ‘HAPPENING HARYANA: Global Investors Summit” in Gurgaon where Apparel Sector is one of the focus area for investment in Haryana. The discussion was led by Shri. P K Das, Additional Chief Secretary, Government of Haryana. Shri T.L. Satyaprakash, Deputy Commissioner, Gurgaon, Shri Sanjeev Raheja, CII, Chandigarh, Shri Ashwani Gupta, Additional Director (Tech), Shri. S N Singh, Joint Director, District Industries Centre, Gurgaon, Shri Vijay Mathur, Additional Secretary General, AEPC, Shri H K L Magu, MD, Jyoti Apparels, Animesh Saxena, MD, Neetee Clothing and Shri Gautam Nair, MD, Matrix Clothing, were among the dignitaries present at the discussion. Critical issues such as skilled manpower supply, ease of doing business and need for constant interaction between government and industry for easier compliance of regulations for the apparel industry were discussed. The agenda of the meeting was to understand the critical issues that the apparel industry is facing and existing entrepreneurial growth in this sector. The presentation also addressed the lack of sufficient industrial training institutes. With grueling emphasis on Skill India these days, there is a need to open more ITI’s training students about the nuances of apparel sector, so that this industry sees more professional entering it to entrylevel jobs. Skill-based training makes entrants more employable in
February 2016
www.textilevaluechain.com
a particular sector. “We have made a mark in Apparel Export all over the world. We are the seventh largest apparel exporter in Globe and the industry is growing at the rate of 3.50%. Haryana is the upcoming destination for investment in apparel industry and is turning into an apparel hub. I would like Gurgaon to become an apparel brand like Surat and Banaras. The Government of Haryana will support the budding entrepreneurs and will provide favorable environment to them. We will gear up and address the critical issues of the industry to motivate entrepreneurship and provide investment in Apparel Industry. ”Shri. P K Das, IAS, Additional Chief Secretary, Government of Haryana. “We are happy that Happening Haryana has Apparel Sector as an area of investment in Haryana. I appreciate the initiative taken by the Government of Haryana in taking up the industry issues. The apparel sector has its share of problems; investment would increase by leaps and bounds once the government takes steps towards eradication of these problems. We have collaborated with state government in various areas and we are constantly in touch with them to help Apparel Industry grow further” Mr. Ashok G Rajani, Chairman, AEPC. “The apparel sector is growing at a rapid pace though there are some hindrances which need to be addressed by the government: · The prevalence of inspector raaj. The industry despite being the least polluting one has to bear the brunt of regular summoning and notices from the pollution boards and such other officers. · The burden of ESI proves to be difficult for new Industrialists and the Haryana government should ease it out by paying the Industrialists share of ESI for first 5 years as is done by the government of Karnataka and Gujrat. It will be a great boost to the industrialists” said Shri H K L Magu, MD, Jyoti Apparels. Speaking further he stressed that apparel industry is one sector which can make the ‘Happening Haryana’ successful.
29
CORPORATE FINANCIAL RESULT
Arvind Q3 Revenue up by 4 % at Rs. 2157 cr. Profit After Tax at 105 crores. Ahmedabad, Arvind Limited, one of the largest integrated textile and branded apparel players, has recorded growth in the consolidate revenue by 4% at Rs. 2157 crores for the quarter ended 31st December, 2015 as against Rs.2074 crores in the corresponding quarter of the previous year. Consolidated EBIDTA was marginally lower at Rs. 281 crores as against Rs. 288 crores in the corresponding quarter of the previous year. Profit after tax (before exceptional items) was marginally lower at Rs. 105 crores as compared to Rs. 112 crores in the corresponding quarter for the last year on account
of higher tax provision. Commenting on the results as well as outlook of the Company, Mr. Jayesh Shah, Director & Chief Financial Officer said: “The performance for the quarter has been satisfactory considering very challenging domestic markets. Following improvements in consumer sentiments, we expect performance in quarter 4 to be a stronger than corresponding quarter.” 9
Indo Rama Synthetics (India) Ltd reports financial results for the quarter and nine months ended
Editor’s Synopsis Q3FY16 Results (Comparisons with Q3FY15) Net Revenue at Rs 603.29 crore vis-a-vis Rs 661.31 crore EBIDTA at Rs 23.74 crore vis-a-vis Rs (5.71) crore Net Profit at Rs 0.35 crore vis-a-vis net loss at Rs 58.40 crore 9MFY16 Results (Comparisons with 9MFY15) Net Revenue at Rs 1877.98 crore vis-à-vis Rs 2,110.63 crore EBIDTA at Rs 64.51 crore vis-à-vis Rs 71.02 crore Net loss at Rs 38.64 crore vis-à-vis Rs 52.37 crore New Delhi, Indo Rama Synthetics (India) Limited, India’s largest dedicated polyester manufacturer, today announced its unaudited financial results for the quarter and nine months ended December 31, 2015. For the quarter ended December 31, 2015, net revenue stood at Rs 603.29 crore as against Rs 661.31 crore in Q3 of previous year. The EBIDTA for the period stood at Rs 23.74 crore as compared to Rs (5.71) crore for the same period. The Company has reported a net profit of Rs 0.35 crore in this quarter as compared to net loss of Rs 58.40 crore in the corresponding quarter last year. For the nine months ended December 31, 2015, net revenue stood at Rs 1877.98 crore as against Rs 2110.63 crore in the previous year. The EBIDTA for the period stood at Rs 64.51 crore as compared to Rs 71.02 crore. Net loss for the period stood at Rs 38.64 crore as compared to net loss of Rs 52.37 during the corresponding period of previous year. The Company registered higher sales of 12% in terms of volume at 83,175 tons as compared to 74,442 tons in the corresponding quarter of the previous year. Domestic sales volume increased by 27% during this period from 56,145 tons to 71,574 tons. However, exports sales have come down from 18,297 tons in the corresponding quarter of last year to 11,601 MT in the current quarter due to sluggish demand in the world market.
30
The Company has taken several initiatives to improve its operational performance. Recently, all the Continuous Polymerization Plants at its site at Butibori near Nagpur are running after several years, which will result in improved margins in coming quarters. The company is expecting further growth in coming quarters as it has started to offer larger variety of products in the market and export market is also showing some signs of improvement. Commenting on the financial performance, Mr. O.P Lohia, Chairman & Managing Director, Indo Rama Synthetics (India) Ltd said “Our results for this quarter have started to fall in-line with our objective to make the Company profitable. The cotton production is expected to remain low in this calendar year, which will help us in improving our margins. The current rate of excise duty on man-made fiber (MMF) is hurting the industry. In order to keep the growth momentum of industry, the association of MMF manufacturers has made a representation to the Government to reduce the excise duty on MMF in the upcoming Union Budget 2016. We are hopeful that the same shall be considered favorably as India needs to create an environment of growth and employment generation opportunities, which are being supported by the industry.” About Indo Rama Synthetics (India) Ltd. Indo Rama Synthetics (India) Ltd. is India’s largest dedicated polyester manufacturer with an Integrated Manufacturing Complex in Butibori near Nagpur in Maharashtra, with production capacity of 6,10,050 tons per annum of Polyester Staple Fibre, Filament Yarn, Draw Texturized Yarn, Fully Drawn Yarn and Textile grade Chips. For more information please visit www.indoramaindia.com 9
www.textilevaluechain.com
February 2016
CORPORATE FINANCIAL RESULT
Visagar Polytex declares 1: 3 bonus; Q3FY16 Net profit up 16.2 % at Rs. 1.37 crore Mumbai based Visagar Polytex Limited, engaged into manufacturing, retail and trading of women’s ethnic wear declared bonus issue and the Q3FY16 results for the quarter ended December 2015. The board of directors of Visagar Polytex has declared bonus shares in the ratio of 1:3, subject to approval from shareholders. This will be the second bonus issue in the same financial year. In the month April, 2015, Visagar Polytex had declared bonus issue in the ratio of 10:1. For the third quarter ended December 2015, the company’s revenues stood at Rs. 23.34 crore, up 2.68% compared to Rs. 22.73 crore in the same quarter last year. Company’s net profit witnessed a jump of 16.2% at Rs.1.37 crore vis-à-vis Rs. 0.75 crore for the quarter ended December FY15. The EPS of the company stood at Re. 0.07 for the third quarter ended December 2015. Post the bonus issue, the increase in authorised share capital of the company will stand at Rs. 25,00,00,000/- from Rs. 19,00,00,000/earlier
Management’s comments:
Mr. Tilokchand Kothari CMD, Visagar Polytex Ltd said, “The festive quarter has been a terrific one for us. Owing to the festive season, there has been a spurt in our sales, which has contributed to our topline. This is a significant achievement for us as we have pan India presence through our retail outlets and strong distribution network across nation,” he said. He further added, “The launch of recent retail outlet in Mumbai is significant aspect of our expansion plan and we target to achieve around Rs. 5 crores within next 12 months. We also plan to open
about 30-40 stores in the next year” he said. Currently, the company has a total of 14 stores in Maharashtra, Rajasthan, West Bengal, Gujarat and also has wholesale presence in about 1500 stores. About Visagar Polytex VISAGAR POLYTEX LIMITED is engaged in textile manufacturing, wholesale, retail & trading business. The company has presence in manufacturing, wholesale and retail business of women’s ethnic wear viz. Sarees/ Lehangas/ Suits through their offices at Surat & Kolkata. The company’s in-house design teams at Surat & Kolkata enable trend-setting and high quality products ensuring wonderful response from their clients based all over the country. They also retail ethnic wear through a chain of company owned ‘VIVIDHA’ branded retail showrooms. Visagar Polytex plans to roll out franchise showrooms soon all over the country especially North & West India. Visagar is the only company in the huge Saree/ Lehanga/ Suit segment (Design /Manufacturing/ Wholesale/ Retail) to be listed on the esteemed Bombay Stock Exchange & National Stock Exchange. Their fully integrated business model from inception to final sale of the product ensures standardization in quality of product and enhances the inherent knowledge resource and capabilities of the organization thereby securing and strengthening the long term prospects of the company. 9
Garware-Wall Ropes PAT grows by 43.3% in Q3FY16 Pune, Garware-Wall Ropes Ltd. (GWRL), a leading manufacturer of technical textiles for the Indian and global markets, today announced its financial results for the third quarter ended December 31st, 2015. Q3FY16 Highlights: yy Sales revenue grew by 0.5% to Rs. 185.46 crore in Q3FY16 as compared to Rs.184.60 crore in Q3FY15 yy Profit before tax grew by 47.4% to Rs. 19.70 crore in Q3FY16 as compared to Rs.13.37 crore in the same quarter last year yy Net profit after tax has grown by 43.3% to Rs. 14.60 crore in the quarter as against Rs. 10.19 crore in the corresponding period of FY15 yy EPS for Q3FY16 is at Rs. 6.67; this is a growth of 55.3% over Q3FY15
9MFY16 Highlights:
yy S ales revenue grew by 9.1% to Rs. 638.66 crore in 9MFY16 as compared to Rs. 585.40 crore in 9MFY15 yy Profit before tax grew by 44% to Rs. 62.79 crore in 9MFY16 as compared to Rs. 43.60 crore in the same quarter last year yy Net profit after tax has grown by 44.8% to Rs. 44.59 crore in the quarter as against Rs. 30.79 crore in the corresponding period of FY15
February 2016
www.textilevaluechain.com
yy E PS for 9MFY16 is at Rs. 20.38; this is a growth of 56.9% over 9MFY15
Management Comments:
“The quarterly performance continues to reaffirm our strategy of focusing on innovation, geographic expansion and operational excellence. In spite of easing input costs resulting in subdued value growth, we have seen healthy margin increases. We expect to maintain this growth in the coming months as well” said Mr. Vayu Garware, CMD, Garware – Wall Ropes Ltd. About Garware-Wall Ropes Ltd: (BSE: 509557 / NSE: GARWALLROP) Garware-Wall Ropes Ltd. (GWRL) is an ISO 9001:2008 certified company. Established in 1976, the Company is a leading player in Technical Textiles, specializing in providing customized solutions to the cordage and infrastructure industry worldwide. A global player, the company is known for its innovation in the field of fisheries, aquaculture, shipping, sports, agriculture, coated fabrics and geosynthetics. GWRL products are manufactured in state-of-art facilities at Wai and Pune (both in Maharashtra, India) and are marketed in more than 75 countries worldwide. For more information, please visit http://www.garwareropes. com 9
31
INDUSTRY VISIT
Ichalkaranji Market
Textile Industry has made an informal group called “TEXTILE FRIENDS” under the guidance of few industry stalwarts. Mission of the group is “To study, formulate & suggest holistic policies which are required to strengthen the entire value chain from cotton farming, ginning, spinning, and weaving to garmenting which can be suggested to various government bodies.” Vision is to form a quick responsive group (across entire value chain) to highlight discrepancies in Govt. policies & international trade barriers, effecting one or all sectors of the textile value chain. & to reduce the missing link in entire TEXTILE VALUE CHAIN. Member’s of the gorup are: 1. Mr. Suresh Kotak from Kotak Commodities 2. Mr. M.L. Jhunjhunwala from RSWM 3. Mr. Sharad Tandon from Stadon Consulting 4. Mr. Shiv Kanodia from Bharat Merchant Chamber 5. Mr. Manish Daga from COTTON GURU 6. Mr. Avinash Mayekar from Suvin Advisors 7. Mr. Arvind Sinha from TAI 8. Mr. J.B. Soma from TAI 9. Mr. Anil Kumar from SRTEPC 10. Ms. Jigna Shah from Textile Value Chain Media Indian Textile industry well known fact is about rich culture and heritage but with diverse clusters. This diverse cluster value chain makes difficult to be cost competitive to neighboring/ Asian countries. Though Government is doing their best for the interest of industry, still Textile is secondary and not priority sector neither for Government nor for Consumer ( Actual Consumer) Textile industry need to proactive, should be self reliant, self motivated. Industry itself needs to step forward and do some constructive changes in entire value chain segment. With these views, few industry stalwarts met in month of August 2015 and decided to do some constructive step for industry, not just to talk but action it out to make industry and economy more profit oriented, more globally competitive. This informal meeting had converted to Informal Group:“TEXTILE FRIENDS” without any government or association support. TEXTILE FRIENDS discussed and brain storm during its first meeting on 31st August, 2015. This brain storm resulted into improve the weakest link in chain ie Weaving and Processing. Other segment of value chain not required immediate attention. So, during meeting we discussed to visit Ichalkaranji Cluster market, which is biggest cluster for cotton weaving fabrics with richest quality fabric.
TEXTILE FRIENDS visited Ichalkaranji on 16th October, 2015, 2nd Field visit to understand the market dynamics. Group members visited are: y Mr. Suresh Kotak from Kotak Commodities ; y Mr. M.L. Jhunjhunwala from RSWM; y Mr. Sharad Tandon from Stadon consulting ; y Mr. Shiv Kanodia from Bharat Merchant Chamber; y Mr. Manish Daga from COTTON GURU ; y Ms. Jigna Shah from Textile Value Chain Media. Objective of the group is to understand the problems of the industry hear the voice of manufacturer/ power loom sector owner. We as industry well wisher wants to help cluster to grow industry. We met few company owners for understanding the realities of sector. Details about company visited as follows: Kindly note our entire trip of Ichalkaranji is sponsored by Ken Enterprises Pvt. Ltd. with ownership of Mr. Nikunj. Special thanks to him. First company visited was M/S. Su-Parshwa Group interacted with his Managing Director. His inputs are for the cluster are as follows : y Market: No demand in market, No buyers. y Power: subsidy at Rs. 3-4/kg. Power cost Rs. 3.50-4/unit, Gujarat state have Rs. 7-8/unit y Ex minister Mr. Prakash Awade very helpful to weaving industry in Ichalkaranji. y TUFS subsidy stopped was very helpful when up to 30 % y 24 meters 1997, 24 2014 picanol m/cs (AirJet, 16 Rapier) y Sell grey fabric to Ahmedabad, Delhi, Kolkata y Both sale purchase and job work, 80 % job work. Max 40x40, 60x60 y Production : Avg 50 x 50 pick, 7 lakh meters/ month y Export: negligible Suggestions y Huge Process house required in Ichalkaranji y Currently 68 process houses, most of them are outdated. y To start with, need process house of 1 Lac meters/day y Shuttless loom: 5-7000 airjet, rapier, Plain: 1.25 L, 1000 Airjet in pipeline y Local weavers do not know what happens to their grey fabric. y Awareness seminar for export through promotion council y Quality standards for export competiveness
The journey begins from here…!!!
Before moving to Cotton Weaving cluster, TEXTILE FRIENDS visited CIRCOT to know their excellent research capability in cotton fibers & other natural fibers. This made us think that being sitting in Mumbai, we are still ignored our most developed research institute. Industry need to recognize the potential of institute and develop synergy between industry and research institute. We are trying to become the linking support to the industry and institute.
32
y y y y
Second company visited is Baldev Textile Mills (P) Ltd met with Mr. Ankitji Sonthalia MD, Finance/Production Head Mr. Ram Purohit. Their views are: Local manufacturer are not aware about market trends. They are depending on agents for their daily inquiries. Need a big process house. Good process houses are making profits. Processing charges in Ichalkaranji for piece dyeing (fabric): Rs. 70 + % (ETP Charges)
www.textilevaluechain.com
February 2016
INDUSTRY VISIT Main reason for Ahmadabad is processing facility is at Rs. 60/kg Quality and consistency advantage in Ahmadabad. Power is at Rs. 2.83/unit Export: Timely delivery is challenge. Cycle is 90 days. Job realization: 13 to 14 paisa/pick, cost 12 to 13 paisa/PICKS Ram Purohit stated that No awareness about SIDBI cheme in “Make in India” of finance to SSI’s @ 8.5 to 9 %. Need to verify.
y
Solution given: y Reduction in cost of finance and hence production. y Market capitalization and diversification by innovation. y Third company visited, M/S. Ambrish Sarda Group, views stated below: y TUFS: subsidy reduced from 30% to 15 % y Maharashtra Government: State subsidy of 25% is closed from 2011 y Need: product development and market development. y Forth company visited is Vishnu Textiles Corp, met Mr. Arun Kumar Goenka, his assessment is of market based on Trust & credit deficit , ultimately Market is growing. y Group met various local associations & DKTE college. There are round of discussion during the meet. Few suggestion given, few association reacted views are as follows: y Mr. M.L. Jhunjhunwala: observed that the industry at Ichalkaranji is highly geared towards cotton. Mr. Jhunjhunwala called upon all the weavers to try and increase use of manmade fiber yarns/blended yarn to give a better product mix to the consumer.
y
y y y y y
February 2016
www.textilevaluechain.com
y y
y
y
Change yourself as per customers’ requirement/demand. Markets have bottomed out cotton & PET has bottomed out due to MSP and petroleum prices. Association Representative: How do we compete against mills who are themselves weavers? Suggestion given: If yarn prices fall, cloth is bound to fall. Solution would be in industry 80 % of people doing job work. Innovation, diversification is major challenge to industry. Mr. Shiv Kanodia: Understand your USP( Unique Selling Point). We can be masters of small quantity as an exclusive / premium product. Standardize job work on basis of quality & cost. Mr. Suresh Kotak: by giving example of Bayer crop science, taking premium of 20 cents, he was trying to convince that Innovation is the only key to success. Be innovative, rule the world. Ms. Jigna Shah: suggested for cluster branding. Synergy with industry, association and world class educational institute like DKTE can play a very important role for development of branding.
In short, textile industry need to realize that Ichalkaranji’s annual turnover is Rs. 8000 Crore with world richest grey fabric. We need to support the cluster and give necessary help to get the mark of Ichalkarani fabric to international market. We request few industry leaders, Associations, Government official to come forward & Join hand with us to make Indian textile clusters stronger, independent & world competitive. 9
33
SHOW CALENDAR March 2016 2-3
Asia Outlook 2016 Place: Singapore, info: delphine.rens@edana.org
4-6
F & A show Place : Banglore/ India, info: www.fnashow.in
10-12 Colombo International Yarn & Fabric Show Place : Colombo/ Sri Lanka, info: http://www.cems-yarnandfabric.com/cifs/ 14-18 International Week for Narrow Textiles Place : Germany, info : www.hs-niederrhein.de/narrow-textiles/ 15-16 India Fashion forum 2016 Place : Mumbai, info : www.indiafashionforum.in 16-17 ATEXCON 2016 Place : Mumbai/ India, info: www.citiindia.com 16-18 Yarn Expo Plac e: Shanghai/ China, info : /yarn-expo-spring.hk.messefrankfurt.com shanghai/en/exhibitors/welcome.html
April 2016 7-9
Fibers & Yarns Place : Mumbai/ India, Info : tecoya@gmail.com
16-17 ITF – DUBAI Place : Dubai/ UAE, info: www.internationaltextilefair.com 21-23 TECHNOTEX 2016 Place : Mumbai/ India, info: www.technotexindia.in 25-28 The 90th textile Institute World conference Place : Pozan/ Poland, info : www.tiworldconference.org 27-30 2016 INDO INTER TEX Place : Jakarta/ Indonesia, info : http://indointertex.com/
May 2016 2-5
4-5
6-8
34
IDEA 2016 BOSTON Place : Boston, info: www.inda.org Textile Machinery Expo Place : Ahmadabad/ Gujarat, info : www.textilemachineryexpo.com SCREEN PRINT INDIA 2016 Place : Mumbai/ India, info : spi2016.screenprintindia.com
20-23 TEXFAIR 2016 Place : Coimbatore/ India, info: www.simamills.org
June 2016
31st May-2 june Hometex 2016 Place : Banglore/ India, info: www.homtex.in 2-4
NONWOVEN TECH ASIA Place : Mumbai/India, info: www.nonwoventechasia.com
14-16 CHINA YIWU INTERNATIONAL EXHIBITION Place : China, info : http://yiwutex.com/YIWUTEX16/ Home/lang-eng/Information.aspx 22-24 HEIMTEXTIL Place : New Delhi / India, info: http://heimtextil-india.in.messefrankfurt.com/ July 2016 1-3 HGH INDIA 2016 Place : Mumbai/ India, info : www.hghindia.com 26-28 Fashion Connect Place : Banglore/ India, info: www.fashionconnect.co.in September 2016 7-9 CAITME Place : Uzbekistan, info: http://www.caitme.uz/
October 2016
11-13 FILTECH 2016 Place: Cologne/ Germany, info : www.filtech.de 12-14 TECHTEXIL CHINA Place: Shanghai/ China, info: www.techtextilchina.com 18-21 IFAI EXPO 2016 Place : CHARLOTTE, NC, info : http://ifaiexpo.com/ 21-25 ITMA ASIA + CITME 2016 Place: Shanghai/ China, info : www.itmaasia.com
November 2016
10-12 ICTN 2016 Place : Delhi, India, info : www.textileconferenceiitd.com
December 2016 3-8
INDIA ITME 2016 Place: Mumbai/ India, info: www.india-itme.com
www.textilevaluechain.com
February 2016
TEXTILE VALUE CHAIN.qxp_Layout 1 20.01.16 12:25 Seite 1
FILTECH October 11 – 13, 2016
Cologne – Germany FILTECH is the largest and most important filtration event world-wide. FILTECH is the international platform solution provider for all industries covering every market segment. This Exhibition is a must for all those concerned with selling, purchasing, designing or researching filtration and separation equipment and services.
The Filtration Event
www.Filtech.de
Free Visitor Ticket for Textile Value Chain Readers Invitation Code: TVCatFILTECH Pre-register at www.filtech.de/ticket.jsp
Join the worlds largest Filtration Show
Cover Price
36 issues
Yarn/Spinner
Rs.
Rs.
Rs.
Rs.
Rs.
Rs.