Apparel India

Vol.1 Issue No.3, November 2012

RNI No. HARENG/2012/45083 Postal Regn. No.GRG/37/2012-2014

FDI in Multi Brand Retail in India: A game changer

INDIA INTERNATIONAL GARMENT FAIR

22-24 January, 2013, Pragati Maidan, New Delhi, India

• NOVEL CONCEPTS • NEW EXHIBITORS • LATEST COLLECTIONS

THE PREMIER DESTINATION FOR • Women’s Wear

2013/14

Autumn/Winter

• Men’s Wear • Children’s Wear • Fashion Accessories

For more information contact:

Rajiv Bhatnagar, Director, Fair & Exhibition Department International Garment Fair Association, Apparel House, Institutional Area, Sector – 44, Gurgaon-122003 (Haryana) India Mobile : 9899014590 Tel: +91-124-2708027/8129 Fax: +91-124-2708004 Email: info@indiaapparelfair.com Website: www.indiaapparelfair.com

For Registration : www.indiaapparelfair.com

APPAREL

INDIA

Editorial advisory board

DR. A. SAKTHIVEL Chairman, AEPC

Sudhir Sekhri

Chairman (Export Promotion), AEPC

Vijay Mathur

Acting Secretary General, AEPC

Sameer Pushp

Senior PRO, AEPC

VIJAY MATHUR EDITOR

ANNOU IYER

EXECUTIVE EDITOR Printed by TrendLab Fashion Publishing Pvt. Ltd & Published by Apparel Export Promotion Council, sponsored by Govt. of India, Ministry of Textiles.

Printed at Archana Advertising Pvt. Ltd., C-78, Okhla Industrial Area, Phase-1, New Delhi-110020, India and Published at Apparel Export Promotion Council, Apparel House, Sector 44, Gurgaon, Delhi NCR, India.

Editor: Vijay Mathur

Content & design

Photos: Š Pitti Filati

Registered Address: B-5, Anupam Plaza, Sri Aurobindo Marg, Hauz Khas, New Delhi- 110016, India

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Editorial & ADVERTISING queries:

M:+91 9899762388 E: apparelindia@trendlab.in

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CONTENTS 06 Chairman’s Letter

41 FASHION NEWS

Message from Dr. A. Sakthivel

News on business of fashion

08 AEPC INITIATIVES

44 Texworld Paris

Information on the most recent AEPC initiatives

Salons & Fairs

46 Apparel Sourcing Paris

18 COVER STORY

Salons & Fairs

FDI in Multi Brand Retail in India, a game changer

48 Première Vision & Expofil Salons & Fairs

23 INDUSTRY NEWS News from the Indian markets

52 BRAND NEWS

30 GOVERNMENT NOTIFICATIONS

The latest Brand Offerings

55 FASHION CALENDAR

32 GLOBAL RETAIL INDEX

Event Listings for the month

38 RETAIL NEWS

58 PRESS COLLAGE

Retail Industry Market Watch

News Clippings

Published by

Apparel Export Promotion Council Apparel House, Sector 44, Gurgaon, Delhi NCR, India Tel: 91 124 2708000-03 Fax: 91 124 2708004-05 Website: www.aepcindia.com Apparel India is a publication of the Apparel Export Promotion Council (AEPC). AEPC and APPAREL INDIA trademarks are owned by AEPC. All rights reserved worldwide. The Council does not take any responsibility about the credit worthiness or any other particulars of the firms featured in this monthly.

Reproduction in whole or in part without written permission is strictly prohibited. AEPC as well as TrendLab Fashion Publishing Pvt Ltd do not take responsibility for unsolicited material. Views expressed in Apparel India are not necessarily those of AEPC and TrendLab Fashion Publishing Pvt Ltd. Apparel India welcomes comments, suggestions or complaints if any. Email us, with your full name and address to apparelindia@trendlab.in

COVER CREDIT: Copyright: Walmart USA

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Letter from the Chairman Dear Fellow Exporters, First of all, on behalf of the entire Textiles Industry I want to congratulate the Government of India for speeding up the reform process. I welcome the decision to allow FDI in multi-brand retail trade. This will create a plethora of opportunities for apparel industry in India. Another important move was the announcement of increase in duty drawback rates on most of the products eligible for the incentive scheme for 2012-13. This is a welcome move aimed at boosting India’s outward shipments.

Wills Lifestyle India Fashion Week Fashion Design Council of India presented WIFW’s S/S 2013 Edition from 6 to 10 October, 2012 at Pragati Maidan, New Delhi. The five-day fashion event witnessed participation from an assorted mix of leading as well as upcoming designers. The internationally acclaimed Indian designer Ritu Kumar recreated the magic of Art Deco using the motifs and moods of the era, at the the grand finale.

An Exporter’s Meet was successfully organized in Tirupur last month. Dr. Anup K. Pujari, IAS, Director General of Foreign Trade was the Chief Guest while Shri V. S. Krishnan, IRS, Chief Commissioner of Customs, Central Excise & Service Tax Coimbatore Zone and Shri. R. J. Ghatey, General Manager, Mid-Corporate, State Bank of India were also present in the Meet. DGFT Shri Pujari was kind enough to clear all the doubts on the spot and gave clarifications to all the intricate issues. DGFT also inaugurated the India Knitwear Fair, at Tirupur, which saw an excellent participation of buyers from Israel, Russia, Ukraine and Latin America.

I am happy to inform you that AEPC with the approval of the Ministry of Textiles is doing a study on India’s Competitiveness in the Apparel Sector. This will help us to focus on the respective products and countries, and in turn boost our exports. Economic advisor MOT will be the member of this project, which will be completed in 7 and a half months.

With the U.S recovery gaining momentum, consumer and business spending has risen while the unemployment, though still high at 8.2%, has fallen to nearly 2% points from its peak in 2009. However, recovery in EU is still fragile leading to lowering of purchasing power of the people in these markets and shortfall in the overall demand. I have requested the Government to soon ink the India-EU FTA because EU is our biggest market and Textiles Sector over all will benefit much more. Our biggest worry today is the appreciation of rupee to the extent of 10% and also in high cost of fund/credit. I request the Government to address these issues.

USA is the top destination for Indian apparels exports. AEPC as a part of its export promotion plan, for the first time, is organizing Buyer-Seller Meet at New York, USA in January 2013. I also request the exporters to make use of this wonderful opportunity and participate with their new products to harness the maximum benefit.

PremiÈre Vision Moscow Première Vision Moscow, the Russian fashion industry’s rendezvous with the best in creative textiles, was held on 24 and 25 September 2012 at the Cosmos Hotel, Moscow. For this edition, dedicated to the Autumn Winter 13/14 season, 36 international exhibitors from 7 countries (Germany, France, India, Italy, Russia, Bulgaria and Turkey) were on hand with a unique offer of fabrics and fashion accessories.

With the on set of festivals, I wish all the exporter members a great success in all their endeavours.

Dr. A. Sakthivel Chairman, AEPC

APPAREL Vaishali Shadangule

INDIA Rahul Mishra

Le Cuir a Paris The 23rd edition of the premium raw material show held in September 2012, was remarkably successful with attendance of 14,011 visitors and 413 exhibitors. European countries formed the leading group with more visitors from France, Italy, U.K, Germany and Spain. Exports further afield also showed healthy increases: (+16%) for American visitors, and (+39%) for Japanese visitors.

Manish Malhotra

Vineet Bahl

Cashmere World

Wills Lifestyle India Fashion Week, S/S 2013

Cashmere World was held from 27 to 29 September 2012 at Hong Kong Convention and Exhibition Centre.

Besides global participation, the exhibition saw a group of five exhibitors from India. These companies were EZMA, Pashma, Old Village, Geetanjali and Ahujasons. The professional buyers showed a keen interest in the specific weaving arts and Pashmina from India.

AEPC Initiatives AEPC responds to the latest Labour Report published by the US Department of Labour Dr. A. Sakthivel, Chairman AEPC, in a response to the report published by the US department of labour on products listed as, Made in India by the forced child labour, has stated that, “The AEPC would like to reiterate that the garment industry of India is deeply engaged in ensuring compliance with the law and that its efforts encompass the informal sector, including home workers, and facilities serving solely the domestic market.�

The AEPC therefore, respectfully urges the department to make clear in its reports and lists that the garment export sector in India is not marked by child labour or forced labour and there has been a significant increase in initiatives at the government, industry and NGO level to improve awareness among the informal sector and those who are serving the domestic market achieve the policies and compliance for which the export sector is rightly recognized, he added.

With regard to the documentation required for positive consideration of the US DoL of removing Indian apparel from the published list, AEPC in a public hearing in February 2012, has already submitted:

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1. Government Enforcement Data: Submitted all India data from 2006 to 2012, indicating significant reduction in violations. Performance of states like Tamil Nadu and Uttar Pradesh, which have been cited in bibliographies as having child labour, shows rigorous implementation with high prosecution to violation ratios.

3. Comprehensive GoI Approach: Details have been submitted of implementation and monitoring of Child Labour (Prohibition and Regulation) Act, Reports of commissions for protection of child rights act, higher enrollments to schools due to Right to Education Act, the vast array of projects run under National Child Labour Project, Sarva Siksha Abhiyan, etc.

2. Independent Civil Society Data: Submitted several positive bibliographies, indicating work being done by NGOs and brands for increasing transparency in the supply chain, e.g.

The national home workers programme being run by Ethical Trading Initiative (ETI), UK, has increased transparency in the supply chain by 60%.

4. The Clothing Manufacturers Association of India (CMAI), which represents and serves both the domestic and export sectors with over 3000 members across India, issued advisories to all its members against child labour, as already conveyed in earlier submission. CMAI has been also doing a media campaign to educate and sensitize manufacturers to

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Initiatives

AEPC

the responsibility of eradicating child labour and encourage children to pursue education.

5. AEPC has initiated a pan India programme on social compliance, Driving Industry Towards Sustainable Human Capital Advancement (DISHA). The program was launched in December 2011 by former Secretary, Textiles, government of India and since then workshops have been organized across India for awareness generation and enrollments to the programme. The response to the program has been very positive among the apparel manufacturers and exporters and AEPC has received over 140 enrollments from various apparel clusters so far, with a target to have 400 units in the next one month as the first phase participation. It is the first of its kind public private partnership programme for improving the nation’s compliance benchmark. In order to reach out across India, especially major clusters, Orientation cum Enrollment Workshops on AEPC DISHA Project were held during February and March 2012. A brief report on the workshops and same is below. The programme received good media attention.

The Impact The factory units had detailed interactions with experts.

Presentations were also made on the core issues on which training will be given under DISHA project. The commitment required from the units was also elaborated upon. Most participants felt that the programme was educative and improved their understanding of the opportunities and responsibilities associated with DISHA and its compliance guidelines.

The workshops gave orientation to over 550 factory units from across India. The response to the programs were good and it is expected that it will help increase the enrollments from the present 140 to 300 factory units, given the good response it received, from clusters like Tirupur, Jaipur and NCR, during the workshops. (vi) The US department of labour report on child labour has put this report based on the negative media coverage and its bibliography. However, the positive bibliography submitted by AEPC based on positive news has been completely omitted.

The present enrollments from 140 units come from all the major clusters in India with a high representation from small and medium enterprises. With an average factory size of 200 to 350 machines, the programme is reaching out to over 50,000 workers, with over 1,50,000 workers expected to be covered when the full roll out of the first 400 units is completed.

The United States Trade representative (USTR) in letter to the Ministry of Textiles has praised, the project DISHA and has desired to forge an alliance with the project to work in the area of compliance. The EU Parliament Rapporteur on Corporate Social Responsibility has also taken an overview of DISHA project and appreciated the project.

Dr. A. Sakthivel in his statement informed that, “We would like to bring to your notice the fact that the apparel industry in India employs 11.2 million workers. It may be appreciated that monitoring such a work force, with over 80% in the SME sector and large parts in unorganized disintegrated units makes data generation is a challenge. The efforts of the government and the industry should be appreciated on the basis of the intent, its scope and commitment demonstrated and corroboration of the same through data may not be possible in all cases. There is no reason to believe that Indian Apparel and garments may have been produced by forced or indentured child labour.”

Chairman AEPC further emphasized that, “India is a founder member of the International Labour Organization (ILO) that came into existence in 1919, we are also signatory to the major ILO Conventions and has rectified C.29-Forced Labour Convention, 1930 and C.105-Abolition of Forced Labour Convention, 1957.

India is totally compliant with all the mandatory forced labour recommendations”.

India is committed to abolition of child labour or forced labour in any form. Government of India has taken full responsibility to enforce the rights of children and the vulnerable sections of the society through a number of programs that provide basic services and social safety nets. Government of India follows a multi-pronged approach that includes: (a) enactment of laws; (b) meaningful enforcement of laws; (c) adherence to international standards; (d) welfare measures to promote the required socioeconomic conditions in which the root cause of child labour would be eliminated.

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AEPC Initiatives Noida Apparel Export Cluster facilitates Chairman AEPC for the Promotion of Apparel Exports Shri Lalit Thukral, President, Noida Apparel Export Cluster, facilitated Dr. A. Sakthivel, Chairman, AEPC, for promotion of apparel exports in India, at Noida at a Exporters Meet held on 26th September 2012. In the felicitation ceremony, exporters of Noida and NCR expressed gratitude to the AEPC Chairman’s effort in addressing the concerns of exporters and helping it grow. Speaking on the occasion Dr. Sakthivel said, “AEPC with the support of its fellow member exporters, is committed to ensure that the apparel exports from India continue grow. In this bid to boost Indian exports to international markets, AEPC relentlessly work for the entire Textiles sector.” India’s textile exports were worth US$ 32456 million in 2011-12 as against US$ 27154 million in 2010-11, an increase of 19.5% from previous year and RMG exports were to the tune of US$ 13699 million in 2011-12 as against US$ 11163 million in 2010-11, an increase of 18% from previous year, he added.

President Noida Apparel Export Cluster, Shri Lalit Thukral in his address stated that, “Noida Export Cluster is happy to facilitate Shri A. Sakthivel, Chairman AEPC. This cluster has 100 members with 378 registered exporters across NCR. There are around 1000 factories with an export of Rs. 6000 Crs. approximately.

The cluster has a huge potential and can act as a hub for apparel exporters in India. The cluster has given the industry in the area, an identity and helped to foster greater exchange of ideas while working to give new direction to the industry.

Besides organizing innumerable well received workshops and seminars on issues like quality, productivity, Forex risk management, VAT, Sales Tax, production planning, to name a few, the cluster has also initiated long-term development programmes. Noida apparel cluster has committed to absorb all the fabric that the cluster produces and the scheme has been sanctioned for funding under the ASIDE Scheme, with NITRA as our consultants, informed Shri Thukral.

AEPC’s Innovative Garment Technology Mission AEPC’s latest initiative is the setting up of the Innovative Garment Technology Mission (IGTM) that enables the apparel exporters to diversify their product base in order to expand their existing markets and also to make inroads into new markets.

Accordingly, the Constituted Committee headed by Shri Rakesh Vaid, EC Member AEPC, met under the Chairmanship of Dr. A. Sakthivel, Chairman, AEPC, ATDC & IAM in Agra, Mumbai Kolkata and Bangalore. Following this, the Chairman of the Committee Shri Rakesh Vaid had several rounds of discussions with the internal team to finalize a pragmatic visionary approach to achieve time bound results.

A detailed meeting was also held with small, medium and large exporters in and around NCR to elicit their responses to the proposal and to generate ideas and suggestions. Based on all the inputs and feedback received so far, the internal working group has prepared the IGTM profile.

Essentially the mission is being envisaged as a 3 stage model of INSPIRATION, INNOVATION and INCUBATION. INSPIRATION would be basically expanding the Knowledge Management and Resource Centre at IAM to include comprehensive collection of fabrics, garment trims and details of various technologies and products etc. as a one stop information dissemination centre to provide regular updated information to the exporters. The new format of IGTM INSPIRATION LAB at IAM will incorporate the presentation technologies of Bunka Fashion Institute in Tokyo, Japan and 10

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Shirley Goodman Resource Centre in FIT, New York, especially that presentation that practice iconic garments, fabrics, shows etc. The INNOVATION centre will process as INNOVATION NODES in major ATDC Hubs where in the 12th Five Year Plan period, there will be Product Specialty Centres to demonstrate different product categories and their technologies.

These INNOVATION NODES in ATDC Hubs will disseminate the information to the exporters in apparel clusters. This will use an Innovation Diffusion Model that was practiced in “Design for District” project in Italy. Once the information is received

Initiatives and processed by the small or medium as well as large exporters, they can incubate the product development effort by creating a new manufacturing facility utilizing TUF funds with the help of a technology provider or a research laboratory (TRAs of MOT, GOI) or Education /Training institution (IAM, ATDC, NIFT, NID etc.) as the case may be. Through large scale dissemination of the product project ideas and training of skilled workforce meant for the same at ATDC-SMART Centres product diversification by exporters will pick up momentum.

AEPC

Thus the model after interactions and discussions has emerged as a very potent tool of utilizing AEPC’s singular status as a leading association (with credibility in trade as well as government) with IAM involved in the Step 1 process of implementation and ATDC in the Step 2 of INNOVATION and in Step 3 a host of other agencies along with exporters to exponentially expand the innovation initiatives and practices by apparel exporters. AEPC expects to see sustainable results in short to midterm period of six months to 2 years.

Seminar on Export Awareness, Membership Drive & DISHA A seminar on Export Awareness, Membership Drive and DISHA was organized by AEPC in the Metiabruz cluster near Kolkata on 11th October 2012 in co-ordination with Bangla Readymade Garments Manufacturers & Traders Welfare Association.

Metiabruz, a huge apparel cluster, is a neighborhood on the southern fringe of Kolkata. The area is the largest producer of garments for the domestic market in India. The Haat system (weekly market) here is the largest in India and most of the produce is sold through these Haats and to the various wholesalers in other states. It is estimated that the annual turnover of this cluster is more than Rs.7200 crores and from the collected local information, it is known that more than 5000 small and medium units function in this area.

The seminar was aimed to encourage the manufacturers of this cluster to start exporting. More than 300 small and medium manufacturers attended the seminar. Shri Anil Buchasia, EC member, AEPC, welcomed all the guests and thanked them for

their overwhelming response. He advised the local association to form an Export Cell to co-ordinate with AEPC in matters relating to membership, DISHA, participation in fairs and other export related issues. Shri Sanjiv Malhotra, Sr. Director, AEPC in his power point presentation explained the various functions of AEPC, benefits on becoming a member and how AEPC can help the cluster to know about the various markets and schemes that are available to the exporters. Smt. Chandrima Chatterjee, Director, E&C explained in details the various aspects of DISHA. Shri Gobindo Chakraborty, Asst. Director General of Foreign Trade, Kolkata explained the various schemes of his office and how to apply for the Import Export code number.

The President of the Association, Shri Nazrul Islam Mollah thanked AEPC for the required information to initiate export from the cluster. The participants also discussed the issues related to the cluster in the organized interaction session. The meeting ended with a vote of thanks by Shri Alamgir Fakir, Secretary of the Association.

Shri Sanjiv Malhotra Senior Director AEPC along with the Additional Director General of Foreign Trade, Dr. B.L. Singhal at the meeting

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AEPC Initiatives AEPC’s Buyer-Seller Meet in Spain successful

Apparel Export Promotion Council in the past, has organized Buyer-Seller Meets in Spain in the years 2008, 2009, 2010 and 2011. Based on an excellent response that it has received for its previous BSMs, AEPC organized a Buyer-Seller Meet in Spain in September 2012 for its exporter members. The BSM in Barcelona was held on 13 to 14 September 2012 while the BSM in Madrid was held on 17 to 18 September 2012.

Spain has been a very attractive market for Indian apparels. During 2010, the garment imports to Spain from India was approximately US$ 720 million. India has been exporting garments worth US$ 720.9 million to Spain, which accounts for 5.4% share in Spain’s total garment imports the market of Spain has a tremendous potential of US$ 13302 million and is growing at a rate of more than 5% annually. The BSM at Madrid was inaugurated by Shri Rajan Pillai in the presence of Shri Lalit Thukral, EC Member, AEPC. The AEPC pavilion had a total area of 315 sqm with 35 stalls of 9 sqm each. The product categories were ladies woven dresses, ladies shirts and tunics, fashion jewellery as well as accessories. 35 export companies from India participated with its 40 representatives. The value of the orders booked was USD 0.20 Mn, while the value of orders under negotiation is USD 19.89 Mn.

India’s garment export to Spain is depicted below.

RMG Imports Statistics All figures in USD Millions 2008

SPAIN’s RMG Imports

From World From India Our Share (%)

*Source: UNComTrade

12

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14830.40

2009 12618.60

2010

%Change 2010/2009

13302.60

5.4

646.00 704.10 720.90 2.4 4.4 5.6 5.4

Initiatives

AEPC

AEPC to organize Buyer-Seller Meet in Bogota & Panama With an aim to target the Latin American market, AEPC is planning to organize BSMs in Bogota, Colombia as well as in the city of Panama from 19 to 23 November 2012, on the recommendation of Embassy of India. It is observed that there is an enormous potential to expand the readymade garment exports in such non traditional markets. The Council for the first time, is organizing a Buyer-Seller Meet wherein one to one meeting shall be organized for participating exhibitors and they will be assigned a meeting space for their business promotion. The Council also proposes to co-ordinate meetings as per the product range of exhibitors and demand of the visiting buyers. The council is taking approximately 10 to 15 exhibitors from India. Meetings with the Garment Importers Association of Colombia as well as Panama, and the respective Chamber of Commerce of these destinations are a part of the agenda.

RMG Import Statistics of Colombia & Panama RMG Import From World (US$ Mn) RMG Import From India (US$ Mn) Country

Panama

2011

7.6

13.4 +76.1%

1380.7 1839.7 2319.4 +26.1% 13.9 19.4

38.3 +97.9%

257.8 330.3 561.4 +70.0%

2009

% Change (2011/2010)

2011

Colombia

2010

% Change (2011/2010)

2010

2009

4.4

Source: UNComTrade, 2012

Import Duty on RMG (As per WTO-2012 MFN Applied Tariff): Panama: Import Duty varies from 11.7% to 15.0% Colombia: Import Duty is 20.0%

AEPC to organize Buyer-Seller Meet in New York, USA during January 2013 Apparel Export Promotion Council as part of its export promotion plan, for the first time, is organizing a Buyer-Seller Meet at New York, USA during January 2013. USA is the number one destination for the export of Indian apparels. During 2011, the garment imports to USA from World were around US$ 81514.10 million dollars. India exports garments of worth US$ 3534.40 million to USA, which accounts for 4.3% share in USA’s total garment imports. Apparel imports of the United States witnessed decline of 1.4% in Jan-Aug 2012 from the corresponding period of previous year and amounted to US$ 51.5 billion dollars. With the US recovery gaining momentum, consumer and business spending has risen and unemployment, though still high at 8.2%, has fallen nearly 2% points from its peak in 2009. AEPC hopes to tap the renewed spirit of the business by holding this BSM. The BSM is scheduled to be conducted at Hotel Penn Plaza, New York, USA from 28 to 29 January 2013. Each participant would be provided with a built-up booth of approximately 9 sqm.

RMG Imports Statistics All figures in USD Millions SPAIN’s RMG Imports

%Change 2011/2010

2009

2010

2011

From World

66795.4

75646.8

81514.1

From India

3054.1 3342.9 3534.4

Our Share (%)

7.76

5.73

4.57 4.42 4.3

*Source: UNComTrade

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AEPC Initiatives AEPC pays tribute to Late Shri Praveen Nayyar Former member of AEPC’s Executive Committee, Shri Praveen Nayyar passed away in New Delhi recently.

Shri Nayyar was a Chartered Accountant by qualification and was actively practicing the profession. In the year 1982, he set up an export house, Dimple Creations along with his wife who was handling the operations. In the year 1990, he joined the company as its Managing Director and since then, he was very actively associated with the Apparel Export Promotion Council being a Member of its Executive Committee for over 20 years and also served as Chairman, (Finance & Budget) and Sr. Vice Chairman for a number of years.

Professional Time Line • Became the Executive Member of AEPC in 1993 for the first time.

• As a member of executive committee for the last 20 years, he served as Chairman (Finance and Budget Sub-Committee) and was Senior Vice Chairman at AEPC. • Elected as the President of the Apparel Exporters and Manufacturers Association • Member of the advisory Committee of Confederation of Indian Apparel Exporters • Sr. Vice President Noida Apparel Exporters Cluster, Noida. Convener ATDC, Noida.

• Member of Delhi State Minimum Wages Advisory Board, Government of NTC • Member of PHD Chamber of Commerce and FIEO. Tributes by the AEPC members and friends

Tributes by the AEPC members and friends Dr. A. Sakthivel Chairman AEPC “Amongst the few shafts of light in the gloom, it is always pleasant to salute a golden ray; one of those golden rays was Shri Praveen Nayyar. His vision, energy and commitment for the promotion and expansion of the garments and apparel trade in India will be remembered for a long time. We worked together for more than two decades; he was a devoted person and a fantastic co-worker. His skill and acumen has brought many credits to AEPC. I offer my sincerest condolences his family in this time of sorrow”

Shri Ashok Rajani Sr. Vice Chairman AEPC “I am truly saddened by Shri Praveen Nayyar's passing away. He was always so kind to us that we always welcomed seeing him at every opportunity. His demise will not only leave a void in our lives, 14

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Shri Praveen Nayyar with AEPC Chairman, Dr. A. Sakthivel during DISHA MoU Signing

but in the hearts of everyone who knew him. I want his family to know that our thoughts and prayers are with them during this tragic time.”

Shri Sudhir Sekhri Chairman (EP) AEPC “With the passing away of Shri Nayyar, the industry has lost a person of huge stature and astute vision. His contribution to the growth of apparel industry, over the past two decades, was enormous. I have lost a very dear friend who was always there for me. It will be difficult to fill the void created by his demise.”

Initiatives Shri HKL Magu, Vice Chairman (NR) It is extremely sad for me to know of the tragic incident. I offer my sincere to condolences to the family.

Shri Ashok Logani, Vice Chairman (ER) “A great loss. Praveenji you would be loved, remembered and adored every moment.”

Shri Premal Udani - Ex - Chairman AEPC “Praveenji’s sudden demise leaves a void for all of us at AEPC. For me, he was not only an esteemed colleague at the Council for over 20 years, but a personal friend, who could be relied upon for anything. With his passing away, the Council has lost a sincere, hardworking and diligent worker and I have lost a good friend.

Shri Rakesh Vaid, Chairman (Innovative Garments Technology Mission) AEPC “Letting go, true friend is hard and painful. The industry has lost a visionary and a fearless leader, we have lost a true well wisher and an unmatched leader.

AEPC

AEPC has lost a very valuable member. May the departed soul rest in peace.”

Shri Virender Uppal, EC member AEPC “I am shocked and I express profound sorrow and condolences for his family.”

Shri Ranjit Shah, President Apparel Handloom & Exporters Association, Chennai “Shri Praveen Nayyar was a mountain of a man. All the members of my A.H.E.A convey their condolences. We pray for the comfort of his family members to continue his good work in the same spirit.”

Shri Rajaram Kandoi, President GEAR “Shri Praveen Nayyar was a great leader of apparel industry.

I pay my rich tributes to the great stalwart.”

Shri Lalit Gulati, President-AEMA

Shri Anil Buchasia

“Shri Praveen’s sudden and untimely demise is a great set- back for the Apparel Community. He was an institution.

Shri Nayyar’s foresight, vision and guidance on the Garment Industry was really worth and laudable.”

“Though I did not know Shri Nayyar for a long time, in the few interactions which we had I came to know of him as a very well educated, a very articulate and a thorough gentleman. In him,

“It has been a great loss to AEPC and the Indian garment industry.”

Shri Vijay Mathur, ASG AEPC

European Parliament Rapporteur on CSR takes an overview of DISHA at AEPC

Mr. Richard Hewitt being welcomed at the meeting by Late Shri Praveen Nayyar, Shri Vijay Mathur, ASG, AEPC, Smt. Chandrima Chatterjee, Director. E & C, AEPC.

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AEPC Initiatives Mr. Richard Hewitt MEP, European Parliament Rapporteur, on Corporate Social Responsibility took an overview of the Government sponsored programme, DISHA, last month.

Shri Praveen Nayyar , Chairman DISHA Sub-Committee and Shri Vijay Mathur, Acting Secretary General, AEPC were also present in the meeting. With regards to Mr. Hewitt’s queries on acceptances received competitiveness issues, challenges faced so far and management of the knowledge and harmonization, Shri Praveen Nayyar stated that, “The programme is not going to dilute the competitiveness of the sector, but in fact enhance it. Our main concern is the stringent norms for overtime, which is far above the ILO stipulation and some of our competing countries.”

Making the presentation Smt. Chandrima Chatterjee, Director, Compliance and Project DISHA AEPC, stated that, DISHA programme also provides training for demonstrable and better benchmarking of social and environmental performance of factories. Smt. Chatterjee while commenting on DISHA said, “We are working towards changing the culture and approach of audits and make it more SME friendly and encourage sustainable changes for the Apparel Industry in India.” She also informed that through workshops and orientation programmes at all major clusters in India,

DISHA has reached out to 598 factories. With average workforce of 400 workers, project DISHA has covered around 2.4 lac workers in terms of awareness generation.

She added that, at present, there are 140 voluntary participating units with workforce ranging from 30 workers to over 3104 workers.

Shri Vijay Mathur, ASG, AEPC requested Mr. Richard to help in corroborating on efforts for greater capacity building of factories for better management of compliance risks.

Shri Mathur stressed the need to work together on mutually shared objective of strengthening capacity to meet and maintain compliance standards through better knowledge, skills and systems.

Concluding the meeting Mr. Richard said, “My objective is to study the aspects of compliance in India so that better harmonization of CSR policies in India and other regions of the world can be achieved." He further stated that, “I am here to study the various compliance aspects regarding the drafting of CSR policy for EU. He ended the talk by saying that I am studying, reflecting, listening and retrospecting so that a better CSR policy is made. He also expressed his happiness to be associated with the AEPC team on DISHA.

33rd Annual General Meeting of AEPC held on 26th September 2012 at Niryat Bhawan, New Delhi

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Initiatives

AEPC

The 33rd annual general meeting of AEPC was held on 26 September 2012, in New Delhi on September 30. Welcoming all the members, Dr. A. Sakthivel, in his report highlighted the export performance. He stated that, “India’s textile exports were worth US$ 32456 million in 2011-12 as against US$ 27154 million in 2010-11, an increase of 19.5% from previous year. Apparel exports were worth US$ 13699 mn in 2011-12 established, an increase of 17.9%. RMG sector and textiles recorded similar growth rates, share of apparel in the textile value chain remained same as last year. RMG sector’s share in textile export has been fluctuating, from 46% in 2006-07 to 51% in 2008-09, nosedived to 42% in 2010-11 and remained stagnant at 42% in 2011-12.

Indian apparel exports had a 3.2% share in world exports in 2011. EU and USA in the Jan-June 2012 period have registered decline in the apparel import. EU registered 12.7% decline in apparel import compared to last year while USA registered 1% decline in apparel import from previous year. This is an indication of slowing down of both the markets. In both markets, Indian garment exports for the period of Jan-June 2012 declined by 10% and 25% respectively.

Dr. A. Sakthivel also reviewed the Export Promotion Initiatives, New Market Initiatives, International Fair participations as well as the Banking Issues that the Council has followed through successfully for the benefit of its exporter members. Speaking on the Knitwear Technology Mission (KTM) Tirupur, the chairman said that the KTM project would provide various support services to the industry including knowledge service (market information about knitwear), testing & certification, research, training & education, design services and investor facilitation services like technology selection etc. With infrastructure to produce new blended fabrics, the KTM would function as an autonomous self sustaining organization on “no-profit, no-loss” model. The services are will be provided to the industry based on industry requirements with the required cost charged.

AEPC Achievements highlighted by Dr. A. Sakthivel • The continuance of Restructured Technology Up-gradation Fund Scheme in the year 2012-13 • The consideration of Pending cases classifieds as List – II cases in the committed liability for modified TUFs. • The invalid 840 cases in TUF refund were taken up for TUF subsidy refund as the delay had been due to no fault of the investor but a consequence of irregular monitoring of cases and claims within the banking sector.

• In the Annual Supplement 2012-13 to the Foreign Trade Policy 2009-14, our requisition have been fully addressed in the first time, • 2% interest subvention availability only for SME units has been now extended to readymade garments also up to 31st March, 2013, • Extension of 2% duty credit scrip for exports made to Latin America and Africa and CIS Countries.

• The inclusion of 7 new markets additionally each in Focus Market Scheme (FMS) and Special Focus Market scheme is helpful and attractive to explore the new markets.

• Zero Duty EPCG scheme has been extended up to 31st March, 2013.

• Extension of 1% duty credit scrip for Status Holders has been accepted.

• 24x7 customs clearance at identified Air Cargo Complexes and Sea Ports for free shipping bill has been approved. We are trying to extend the 24x7 customs clearance facility for Drawback Shipping bills also.

• Export credit in Foreign Currency by Banks to exporting units has been started.

• RBI has made the changes by allowing exporters to cancel and rebook forward contracts to the extent of 25% of the total contracts booked for hedging their exposure.

• Ministry of Finance, for the first time, announced the Service Tax refund on the lines of Duty Drawback to exporting units and fixed 0.15% of the total FOB value for the garments exports, effective from 3rd January 2012. After our representation, it was revised upwards to 0.18%, which came into effect from 1st July, 2012.

• Debt Restructuring for Textile Industry has been taken up actively.

• 70% Financial support of Rs.150 lacs for study on Competitiveness in Indian Apparel Industry has been approved.

• Setting up of “Exporters’ Felicitation Cell” in AEPC for redressal of grievances of exporters.

• Providing Apparel India magazine at a discounted price of Rs. 275/- per annum

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COVER FDI in Multi-Brand Retail in India: A game changer The Cabinet’s approval on FDI in multi-brand retail trading in India will have positive effects on globalised modern retail, especially on four groups of stakeholders: modern retail workers, small retailers, supply chain intermediaries and producers. We make an attempt to understand how this could be a game changer for the Indian Retail Industry.

While taking a decision to permit FDI in Multi-brand retail trading, the Cabinet has clarified that it would be the prerogative of the State Governments to decide whether and where a multibrand retailer, with FDI, is permitted to establish its sales outlets within the State. Therefore, implementation of the policy is not a mandatory requirement for all States.

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COVER Organized & Unorganized Retail can co-exist and grow simultaneously footprint. We have priorities. Investment in the back-end will lead to creation of infrastructure like cold-storage. Farmers will get better price realization. Millions of jobs will be created. The small sector also stands to benefit as 30% sourcing has to be done from SMEs. This will lead to value addition.”

“Adequate safeguards have been built into the policy, some of which have been further strengthened, such as – (a) A three year timeframe has been fixed for setting up the back-end infrastructure, which includes capital expenditure on all activities, excluding that on front-end units; for instance, back-end infrastructure will include investment made towards processing, manufacturing, distribution, design improvement, quality control, packaging, logistics, storage, warehouse, agriculture market produce infrastructure etc. (This condition will bind the foreign investors to invest in critical back-

Defending the decision to allow FDI in multi-brand retail, the hon’ble Prime Minister of India, Shri Man Mohan Singh has stated that, “In a growing economy there is space for both small and big retail. We should also remember that the opening of organized retail to foreign investment will benefit everyone”.

The Farmers stand to benefit from the significant reduction in post-harvest losses, expected to result from the strengthening of the backend infrastructure and enable the farmers to obtain a remunerative price for their produce. According to the Cabinet’s regulations, those who bring FDI will have to invest 50% of their money in building new warehouses, cold-storages and modern transport systems. This will help to ensure that a third of our produce, which at present is being wasted because of storage and transit losses, will actually reach the consumer. Wastage will go down; prices paid to farmers will go up; and prices paid by consumers will go down.

Small manufacturers will benefit from the conditionality requiring at least 30% procurement from Indian small industries, as this would enable them to integrate with global retail chains. This, in turn, will enhance their capacity to export products from India.

The Union Minister of Commerce, Industry & Textiles, Shri Anand Sharma has said that, “We are clear on why we need FDI in multi-brand; we have tried to balance interests of farmers, consumers and retailers. India has put in place a policy regime and the decisions have resonated globally.” It has been after fairly elaborate consultations with stakeholders in an inclusive and democratic manner that we put together an enabling policy framework. The policy is India-specific, with a distinct Indian

“Shri Anand Sharma the Union Minister of Commerce, Industry and Textiles pitching for FDI in multi-brand retail in India; he has been the architect and epicenter of the reforms process by the Government”

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COVER end infrastructure, which is a felt need across the country) and (b) Small manufacturers will benefit from the conditionality requiring at least 30% procurement from Indian small industries, as this would enable them to get integrated with global retail chains. This, in turn, will enhance their capacity to export products from India.”

Responding to the query of how will medium and small industries be impacted by the policy Shri Sharma commented, 30% sourcing from Indian small industries has been made mandatory. Small manufacturers will benefit, as it would provide the necessary scales for these entities to expand capacities in manufacturing, create more employment and also strengthen the manufacturing base of the country. They will derive the benefits of improved productivity due to technology up-gradation, resulting in increased profitability and earnings. The sourcing condition will also enable the small enterprises to get integrated with global retail chains, thereby enhancing their capacity to export products from India. New manufacturing opportunities will open for the nation’s micro, small and medium enterprises.

The Minister has also stated that, “The implementation of this policy will facilitate greater FDI inflows, additional and quality employment, global best practices and benefit consumers and farmers in the long run, in terms of quality, price, greater supply chain efficiencies in the agricultural sector and development of critical backend infrastructure.” On reply to the benefits to rural youth Shri Sharma emphasized, “FDI in multi-brand retail trading will create a large number of employment opportunities, in villages spread across the country, in the entire range of activities from the backend to the frontend retail business, as also from the skills imparted to them by the prospective investors.”

FDI in retail also means more jobs The Indian retail is a robust pillar of the economy with a 13% contribution to the GDP and employs 6% of the nation’s workforce. This means that we must ensure that the economy grows rapidly, with increase in revenues we need to finance our programmes in education, health care, housing and rural employment. The young population in India, joining the workforce will benefit from the creation of employment opportunities. This change would lead to the creation of millions of jobs as massive infrastructure capabilities would be needed to cater to the changing lifestyle needs of the urban Indian who is keen on allocating the disposable income towards organized retailing as well as unorganized retailing. Also, this would be more prominent in the Tier-II and Tier-III cities where the organized retailers would find it harder to establish themselves.

Dr. A. Sakthivel, Chairman, AEPC, on behalf of the entire Apparel Industry has also welcomed the Government move to allow FDI in multi-brand retail. In his statement made recently to the Press, he stated that, “The FDI approval will give the much needed fillip to the entire Textiles Industry. Employment opportunities will be created in plenty. There will be increase in the manufacturing activity and rise in the demand of cotton products and yarn. Even the domestic demand will pick up.

Availability of capital flow will improve manifold. Better infrastructure would be created at back and front end of the business value chain.”

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COVER Introduction of Adequate Safeguards The FDI proposal had earlier been approved by the Cabinet in its meeting in November 2011. However, implementation of the proposal had been deferred, for evolving a broader consensus on the subject. Intense discussions have been held with State Governments, representatives of consumer associations/ organizations, micro and small industry associations, farmers’ associations and representatives of food processing industry and industry associations. The Chief Ministers of Delhi, Assam, Maharashtra, Andhra Pradesh, Rajasthan, Uttarakhand, Haryana and Governments of the State of Manipur and the Union Territory of Daman & Diu and Dadra and Nagar Haveli have expressed support for the policy in writing. The Chief Minister of Jammu & Kashmir, Shri Omar Abdullah through his press statements, has publicly endorsed the policy and asked for its implementation.

However, the State Governments of Bihar, Karnataka, Kerala, Madhya Pradesh, Tripura and Orissa have expressed reservations. During the consultations with the stakeholders, views for and against FDI in multi-brand retail trading were expressed. On balance, however, the discussions generally indicated support for the policy, subject to the introduction of adequate safeguards.

Accordingly, the following proposals have been approved: (i) Retail sales outlets may be set up in those States which have agreed or agree in future to allow FDI in MBRT under this policy. The establishment of the retail sales outlets will be in compliance of applicable State laws/regulations, such as the Shops and Establishments Act etc. (ii) Retail sales outlets may be set up only in cities with a population of more than 10 lakh as per 2011 Census and may also cover an area of 10 kms around the municipal/ urban agglomeration limits of such cities; retail locations will be restricted to conforming areas as per the Master/ Zonal Plans of the concerned cities and provision will be made for requisite facilities such as transport connectivity and parking; In States/Union Territories not having cities with population of more than 10 lakh as per 2011 Census, retail sales outlets may be set up in the cities of their choice, preferably the largest city and may also cover an area of 10 kms around the municipal/urban agglomeration limits of such cities. The locations of such outlets will be restricted to conforming areas, as per the Master/Zonal Plans of the concerned cities and provision will be made for requisite facilities such as transport connectivity and parking. (iii) At least 50% of total FDI brought in shall be invested in ‘backend infrastructure’ within three years of the induction of FDI, where ‘back-end infrastructure’ will include capital

expenditure on all activities, excluding that on front-end units; for instance, back-end infrastructure will include investment made towards processing, manufacturing, distribution, design improvement, quality control, packaging, logistics, storage, ware-house, agriculture market produce infrastructure etc. Expenditure on land cost and rentals, if any, will not be counted for purposes of backend infrastructure. (iv) A high-level group under the Minister of Consumer Affairs may be constituted to examine various issues concerning internal trade and make recommendations for internal trade reforms.

Other conditions/safeguards, approved by the Cabinet in November 2011, would remain unchanged. The suspension of Government’s decision taken in the Cabinet meeting on November 2011 to permit FDI up to 51% in MBRT, therefore, stands removed.

The respective State Governments administer the Shops & Establishment Act within their territorial jurisdiction. “Trade & Commerce within the State” is a subject allocated to the State Governments, under the Constitution of India. State Governments are also responsible for aspects ancillary to MBRT, such as zoning regulations, warehousing requirements, access, traffic, parking and other logistics. As such, the policy provides that it would be the prerogative of the State Governments to decide whether and where a multi-brand retailer, with FDI, is permitted to establish its sales outlets within the State. Therefore, implementation of the policy is not a mandatory requirement for all States.

Retail sales outlets may be set up only in cities with a population of more than 10 lakh as per 2011 Census (including an area of 10 kms around the municipal/urban agglomeration limits of such cities). On the other hand, States/Union Territories, which do not have any city with a population exceeding 10 lakhs, but are desirous

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COVER of implementing the policy, would have the flexibility to do so.

Thus, the revised condition gives primacy to the decision of the States in this regard, recognizing that the FDI policy constitutes, at best, an enabling framework for the purpose. Adequate safeguards have been built into the policy, some of which have been further strengthened.

A three year timeframe has been fixed for setting up the backend infrastructure, which includes capital expenditure on all activities, excluding that on front-end units; for instance, back-end infrastructure will include investment made towards processing, manufacturing, distribution, design improvement, quality control, packaging, logistics, storage, ware-house, agriculture market produce infrastructure etc. Expenditure on land cost and rentals, if any, will not be counted for purposes of backend infrastructure. This condition will bind the foreign investors to invest in critical back-end infrastructure, which is a felt need across the country. It would also make the foreign investors accountable for proper implementation of the condition.

The high-level group, to be constituted under the Minister of Consumer Affairs, is expected to look into various aspects relating to internal trade, to make recommendations on internal trade reforms to the Government, whenever required. This is in response to a demand articulated by traders’ associations during the course of consultations. Reforms in internal trade will ensure distributional efficiencies and also that the benefits from trade are available to all sections of society.

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INDUSTRY Exporters’ Meet and 35th IKF held in Tirupur News

The 35th edition of India Knit Fair (IKF), jointly organised by Apparel Export Promotion Council, India Knit Fair Association and Tirupur Exporters Association was held in Tirupur. As a curtain raiser to the event, an Exporters’ Meet was organized in IKF complex on 16th October, 2012. Dr. Anup K. Pujari, IAS, Director General of Foreign Trade inaugurated the event as the Chief Guest in the presence of Dr. A. Sakthivel, Chairman (AEPC & IKFA), Shri V. S. Krishnan, IRS, Chief Commissioner of Customs, Central Excise & Service Tax Coimbatore Zone, Shri R. J. Ghatey, General Manager, Mid-Corporate, State Bank of India, Shri Premal Udani, Secretary, IKFA, leading exporters and participants.

Dr. A. Sakthivel, Chairman, AEPC & IKFA welcomed the exporters and the dignitaries and presented his welcome address.

During his address, he appraised the exporters on benefits extended to the garment industry in Foreign Trade Policy and brought to the notice of dignitaries on the dais, the issues that industry is facing in Export/Import front and some issues/flexibilities which the industry is seeking from the Customs to clear the shipments smoothly and round the clock.

Dr. Anup K. Pujari, DGFT and Shri V. S. Krishnan, Chief Commissioner responded very positively and was kind enough to clarified in detail all doubts to the utmost satisfaction of the exporters; which was lauded by everybody who attended the meet. Shri Pujari also had a detailed interaction with participants and they are satisfied on compliance of social accountability by the exporting firms who are supplying to leading brands in the international market.

Dr. A. Sakthivel, Chairman conveyed his sincere thanks on behalf of AEPC and Exporter’s community for on the spot clarifications given by the Chief Guests’ including General Manager of SBI, conveying the cooperation extended by the State Bank of India and other nationalized banks in restructuring the loan accounts of the exporters, who are in need. The meet ended with a vote of thanks by Shri Premal H. Udani, Past Chairman (AEPC) & Secretary (IKFA).

Approximately 50 exporters participated and displayed their exclusive Winter Collections for kid’s wear, women’s wear and menswear. In addition, 10 supportive agencies also participated in the event.

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INDUSTRY News Delegation from the Ministry of Textiles visits Jaipur and meets the Chief Secretary, Rajasthan A meeting with the Chief Secretary, Rajasthan was held on 19th October 2012 in Jaipur. Dr. A. Sakthivel, Chairman AEPC met Shri C.K Mathew, IAS, Chief Secretary, Rajasthan along with Shri Suneel Arora, Chairman RIICO, Principal Secretaries Finance, Labour and Industries and other top officials of Government of Rajasthan at Secretariat Jaipur. The delegation was led by Shri V. Srinivas, IAS, Joint Secretary (Exports) Ministry of Textiles.

The other delegates were Ms. Manisha Sinha, Director Exports, Shri Vijay Mathur, Secretary General (Acting) and Dr. Darlie Koshy, DG ATDC. Matters related to Skill Training Programmes in the Textile Sector in Rajasthan, DISHA and ATDC Training Programmes related matters were discussed.

Dr. A. Sakthivel informed that AEPC is giving big focus on skill development in the State of Rajasthan in order to increase employment and exports. He said that Rajasthan contributes over Rs. 1000 Cr exports annually and also provided employment to around 2 Lac workers. He said that around 325 garment factories are operational in the export sector. He further added that the skill development mission proposed in the 12th Five year plan envisages 35000 workers to be trained in various apparel streams. The Chairman also explained that the weakest link export of Rajasthan is its processing houses. He requested the State Government to use the 12th Five year plan, where more money is provided for processing sector. The garment exports can hence reach Rs. 5000 Crore in 12th Five year plan.

Shri V. Srinivas informed that in skill development, an outlay of Rs. 2400 Cr in the 12th Five year plan is proposed. He said that AEPC’s Apparel Training and Design Centres are the flagship

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News institutions in skill up-gradation and approximately Rs. 328 Cr allocation for ATDC has been made in the current plan. He further informed on the Ministry’s emphasis in integrated processing development schemes including effluent treatment plants for zero effluent discharge. Dr. Sakthivel informed that Tirupur is the first city in the world where zero effluent discharge has been achieved.

He requested the State Government to set up textile processing units with common effluent treatment plants for improving back value chain of garments. The Chief Secretary agreed to conduct study for the viability of the setting up of the processing park in the State of Rajasthan along with adequacy of water resources.

Dr. Darlie Koshy, DG ATDC made a detailed presentation stating that 13 Centres are in operation in the State of Rajasthan and proposal is to enlarge this to 25 centres. Some centres also require further capacity building. Some centres also require buildings with further capacity. Shri C.K Mathew, IAS, Chief Secretary, Rajasthan requested Chairman, AEPC to consider establishment of 1 Trainers of Training Academy and commencement of long term courses of at least 1 year at 3 to 4 ATDC centres. Dr. Sakthivel gave his consent to commence a TOT Academy and said that Government of Rajasthan should provide ready to occupy building of about 10,000sq ft with capital expenditure support. For the new Centres, the State Govt. /RICCO may provide rent free space in the fully developed place.. Dr. Sakthivel gave his consent immediately and said that the Government of Rajasthan should provide financial support for capital expenditure and also providing constructed buildings for creating such facilities. Shri C.K Mathew agreed to the proposal of the Chairman AEPC. Dr. A. Sakthivel gave a presentation copy of DISHA to Shri C.K Mathew, Chief Secretary and gave a detailed progress and contours of the scheme. He said that active participation from the State of Rajasthan is required to promote compliance in garment and textile industries. Shri Vijay Mathur requested that AEPC desires to conduct seminars on DISHA at various locations in the State, in cooperation with Principal Secretary, Labour. This was agreed by Chief Secretary.

INDUSTRY

Later, the delegation under Shri V. Srinivas had a meeting with Shri Suneel Arora, Chairman RIICO. Shri Arora requested help of AEPC in the successful organization of their event VASTRA. Shri V. Srinivas informed that Ministry of Textiles supported the project by recommending MAI grant of Rs. 3.5 Cr and also provided the database of buyers to promote VASTRA. He assured further support of the Ministry of Textiles through various EPC’s.

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INDUSTRY News India’s Textile & Apparel Industry to touch US$ 223 billion by 2021 The industry body, FICCI organised an annual conference on textile and apparels TAG 2012 in Mumbai on 10th October 2012.

The Deputy director, Ministry of Textiles, Shri S. P. Verma stated at the event that “The recession in textile industry seems to be over.

Investment in weaving and processing segments is required to strengthen value chain and bankers commitment level to serve the client.” He also said the important thing is to meet challenges that have proposed on infrastructure development, recycling and textile economic processing. In the inaugural session, Shri Peush Narang, principal consultant, at Technopak Advisors said the global share of textile industry was 4.5% in 2011 and is expected to be 6% in 2016 and 8% in 2021. Globally, apparel industry is expected to grow at a CAGR of 6%. Shri Narang also said that EU and USA has still not recovered from 2008 crisis and the trend is likely to continue. China and India is an emerging hub in apparel industry.

India has to go far beyond China. Throwing a light on challenges he said, “Rising cost, raw material cost and increase in volatility in raw material prices. Labour unrest, poor work environment and supply chain problem (lead time) are few challenges which can be solved by sincere efforts.”

Technopak’s white paper published at the event, India’s total textile

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and apparel industry size both domestic and exports is projected to grow at a CAGR of 9.5% to reach US$ 223 billion by 2021 from the US$ 89 billion in 2011. The white paper projecting the challenges in Textile and Apparel Industry states that India’s total textile and apparel industry size is estimated at US 89 billion in 2011 and is projected to grow at a CAGR of 9.5% to reach US$ 223 billion by 2021. The domestic textile and apparel market in India is worth US$ 58 billion and has the potential to grow at a CAG of 9% to reach US$ 141 billion by 2021.

Overall, India’s textile and apparel exports were at USD 31 billion in 2011 and are growing at an annual rate of 10% since 2005.

Apparel exports contribute the most to the overall exports in terms of value, followed by contributions from fibre, yarn and fabrics.

However, fibre exports have the highest CAGR with substantial growth in recent years. Today, India’s share of the world’s textile and apparel exports stands at 4.5%. It is estimated that due to the increasing shift of textile and apparel production to Asian nations and the deteriorating export-competitiveness of China, this figure will grow to 8% by 2020, with a total exports value of US$ 82 billion.

This growth, from 4.5% to 8% of world trade, will open up huge potential for Indian players, states the report.

News INDUSTRY Training Program for Tirupur Exporters Association demands IAF personnel a Special Status Footwear Design & Development Institute (FDDI) conducted a special training programme for the Indian Air Force on clothing, textile and inspection at its International Testing Centre in Noida recently. 17 senior officers of the Indian Air Force underwent the training programme. Basic terminologies of textile, common defects in fabric, new developments in technical fabrics, sampling techniques for garments and fabric were the topics covered in the programme. The training program was divided into theoretical and practical sessions. The highly trained faculty of FDDI delivered their expertise through lectures, power point presentation, slides, and samples. The information related to the process of manufacturing the footwear from designing to finishing, packing to quality control and construction systems was delivered. The training programme helped Indian Air Force personnel in selecting the right clothing and textile materials. The participants appreciated the inputs received during the course and emphasized the need of training periodically to update about the latest technology.

In a letter to Smt. J. Jayalalithaa, Chief Minister of Tamil Naidu, president of Tirupur Exporters Associations (TEA), Dr. A. Sakthivel stated the need to providing a special status to export oriented Tirupur industry. He requested the Chief Minister to allow uninterrupted power supply. The Tirupur industries are providing jobs to more than 3.50 lakh people directly and to 2 lakh workers indirectly. With the increased power cut, the exporters are finding difficult to plan production and delivery. Tirupur knitwear exporters are facing stiff competition in the global market due to dependency on captive power generation.

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INDUSTRY News Ministry of Textiles Delegation to Sri Lanka An Indian delegation comprising Textile Ministry officials and business representatives of private sector visited Sri Lanka.

The visit, one of the biggest ever in terms of size, has been made possible by the Colombo visit of the Indian Minister of Commerce, Industry and textiles, Shri Anand Sharma last month. The delegation included ministry of textiles officials Smt. Kiran Dhingra, Shri V. Srinivas, Smt. Sunaina Tomar and Shri J. P. Dutt. The delegation also included representatives of various textile and apparel associations such as Apparel Export Promotion Council (AEPC), The Cotton Textiles Export Promotion Council (TEXPROCIL), and Powerloom Development & Export Promotion Council (PDEXCIL). In

2011, Sri Lanka exported US$ 50 million worth of garments, woven fabrics and other textiles to India and the country’s garment exports to India alone stood at US$ 25.56 million.

Shri Rishad Bathiudeen, Sri Lanka’s Minister of Industry and Trade said that the visit would help Sri Lanka to further expand its apparel exports to India. To enhance bilateral cooperation between India and Sri Lanka in the textiles sector at Government, institutional and business-to-business levels, the Government of India has also approved Sri Lanka’s request for relaxation in RMG export to India. Sri Lanka would be able to export 8 million pieces of RMG at zero duty under India- Sri Lanka Free Trade Agreement (ISFTA).

The Source Zone Fair, November 2012 After the overwhelming success of the very first edition of the Source Zone Fair, the Second Source Zone Fair 2012 will be held at Apparel House, Gurgaon from 05 to 07 November 2012. AEPC is once gain ready to provide an opportunity and platform where the textile value chain comes together to network, source and propel the entire range of textiles materials for garmenting. The visitors as well as the exhibitors may like to avail opportunity to analyze from the wise spectrum of existing and emerging products and service at one place. This fair will help the participants to develop their creative collection, update their apparel accessory resources, skills and techniques.

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News INDUSTRY Indian Garment Exports continue to decline in dollar terms Releasing the export data for the month of August 2012 , Dr. A. Sakthivel, Chairman AEPC stated that apparel exports were to the tune of US$ 989 million in August 2012-13 with a decline of 7.2% against the corresponding month of last financial year. In rupee terms, the exports have increased by 13.9% in August 2012-13 over the same month of previous FY. Export in dollar terms for first five months of the FY 2012-13 has declined by 12.16% over the same period of previous FY and reached to US$ 5260 million however, in rupee terms exports increased by 7.3% compared to same period of last FY. In April-August 2012-13 in rupee terms apparel export of India was to the tune of Rs. 28761 crore compared to Rs. 26800 crore in April-August 2011-12. In the FY 2011-12 exports in dollar terms increased by 17.9% from previous FY and totalled US$ 13699 million in April-March 2011-12. Dr. Sakthivel further said, “The global financial crisis emanating inter-alia from sub-prime mortgages and unregulated credit default swaps is behind us. However, the sovereign debt crisis in the euro-zone has followed immediately thereafter. The weak recovery in EU and USA has reduced the purchasing power of the people in these markets- leading to the shortfall in the overall demand. I will request government to ink the India-EU FTA because EU is our biggest market and Textiles Sector will benefit much more.” He added, “I welcome the government move to speed up the reform process. However, raising cost of fuel and inflation thereby is hurting the exports. To reduce the vulnerabilities to the external shocks Government needs to build fiscal space, reduce the short term debt exposure and creating the buffers that allows them to react in a resiliently manner” he added. “The biggest worry is appreciation of rupee to the extent of 10% and also in high cost fund”

Malini Ramani

In the FY 2011-12 exports in dollar terms increased by 17.9% from previous FY and totalled USD 13699 million in April-March 2011-12.

India’s RMG Export to World FY 2011-12 Month

In INR Crore

In US$ Million

FY 2012-13 In INR Crore

In US$ Million

MoM Growth (%) US$

INR

April

5203.0 1173.0 5486.0 1059.0

5.4

May

5533.0 1232.0 5650.0 1037.0

2.1 -15.8

June

5546.0 1236.0 6192.0 1105.0

11.7 -10.6

July

5691.0 1281.0 5936.0 1070.0

4.3 -16.5

August

4827.0 1066.0 5497.0 989.0

Cumulative 26800 (Apr-July) [4 Months]

5988 28761 5260

13.9

-9.7

-7.2

7.32 -12.16

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Government Notifications The Ministry of Finance has announced the revised Duty Drawback Rates effective from 10.10.2012 vide Custom Notification No.92/2012-N.T. dated 4th October 2012.

The details of notification is on the Finance Minister web site.

A comparative statement of duty drawback rates effective

Tariff Item

Product

Drawback rate effective from 1.10.2011

Drawback rate effective from 10.10.2012.

Rate (%)

Rate (%)

Value Cap/ piece (Rs.)

Value Cap/ piece (Rs.)

61 & 62

Of cotton Of blend containing

cotton and MMF fibre Of MMF fibre

Of Silk (other than

containing Noil silk)

Of Noil Silk

Of Wool

Of Others

7.1%

45

7.9

55

8.2% 47

9.3 57

9.1% 49

10.5 59

7% 80

7 96

7% 7.1% 7.1%

7 7.9 7.9

20 45 36

24 55 44

Amendment in ITC (HS) 2012 Schedule 1 – Import Policy with Customs Tariff Schedule 2012.

In exercise of powers conferred by Section 5, read along with Section 3(2) of the Foreign Trade (Development and Regulation) Act, 1992, read with paragraph 2.1 of Foreign Trade Policy, 2009-14, the Central Government hereby makes the following amendments in the Schedule 1 – Import Policy of the ITC (HS), 2012 in line with Customs Tariff schedule 2012.

The tariff lines at 8 digit in Chapter 44, 50, 51, 52, 57, 58, 62 & 63, which were omitted, are included as new entries to the ITC (HS) 2012 published vide Notification No. 111 dated 18.4.2012. These are to be added to the respective Sub-headings (at 6 digit) : Details on DGFT site.

The tariff lines were notified in the ITC(HS) vide Notification No 51/2009-14 dated 8 July, 2010 but were omitted in the latest publication of ITC (HS) 2012 vide Notification No. 111 dated 18.4.2012. These tariff lines (at 8 digit) are being included now in chapter 53, 56, 57 & 94 to the respective Sub-headings (at 6 digits): Details on DGFT site In Chapter 53, the description of the following two items at 8 digit were modified vide Notification No 51/200914 dated 8 July, 2010, but were omitted in the latest publication of ITC (HS) 2012 vide Notification No. 111 dated 18.4.2012. These are now included: Details on DGFT site Effect of this Notification: Certain items with their attendant ITC (HS) codes were omitted in the ITC(HS) published vide Notification No. 111 dated 18.4.2012.These have been incorporated with a view to align with Customs Tariff Schedule 2012.

Details on DGFT site 30

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Notifications Government Introduction of electronic Bank Realization Certificate (e-BRC) system. Policy Circular No. 06(RE- 2012) /2009-14, dated:10.10.2012 Attention is invited to Public Notice No. 08 dated 6.7.2012 that dispensed with the Issuance of physical copy of BRCs by banks for the purpose of DGFT use and made e-BRC mandatory w.e.f. 17.8.2012.

Following guidelines are issued for uniformity in approach and guidance of stakeholders: Guidelines for Banks: A1. Issuance of physical copy of BRCs by banks has been dispensed with for the purpose of DGFT use. Banks will, now transmit BRC data electronically to DGFT server.

A2. Banks will convert BRC issued manually during 01.04.2012 and 16.08.2012 in the digital (XML) format and upload these onto the DGFT server. This will ensure availability of complete BRC data in electronic form for the entire financial year. Details can be seen in the Ministry of Commerce web site.

Export Performance Certificate This has reference to issuance of Import Certificate against AEPC’s Export Performance Certificate.

The Apparel Export Promotion Council issues Export Performance Certificate (EPC) as per AEPC Circular No. S&M/01/2012 dated 28.03.2012 to its member exporters for Duty Free Import of eligible trims and embellishments as allowed under notification no. 12/2012 dated 17.3.2012 & subsequently amended by Ministry of Finance (Department of Revenue) vide corrigendum F.NO 334/1/2012-TRU dated 19.03.2012.

Chairman AEPC had requested inclusion of following items in the scheme : 1. Bobbin elastic; 2. Textile flowers; 3. Water soluble lining, poly pouch, high density sticker, heat transfer sticker; 4. Anglets on draw strings-hooded jacket; 5. Bra cup, bust cup, moulded cups for bra and metal underwire for bra; 6. Hook and bar, extra button covers-plain, ribbons, waist bands, shooterpin, O rings, thermo strips and metal clip; 7. Pin bullets for packing, plastic tag bullets, metal tabs, bows, ring & slider and rings.

It may please be noted that the above said items have been considered for issuance of Import Certificate under AEPC’s Export Performance Certificate, as per the Ministry of Finance, Department of Revenue vide its Notification No. 51/2012-Customs dated 13.09.2012. Details can be viewed on the AEPC web site.

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GLOBAL RetailIndex Global Retail Expansion: Keeps On Moving Global retail is finally growing into its name and becoming “global.� While the largest developing markets continue to attract most leading retailers, a handful of smaller untapped countries are getting a second look...

While Europe faced another year of economic turmoil in 2011, developing countries forged full-speed ahead. With consumer confidence improving and spending increasing, global retailers continued their expansion into these markets. The 2012 A.T. Kearney Global Retail Development Index™, the 11th annual edition, finds a wide array of possibilities for retailers seeking to capture an immediate impact and a growth advantage in developing countries. Possibilities abound not only in the biggest markets, but also in many smaller countries around the world. The GRDI ranks the top 30 developing countries for retail investment. Figure 1 on page 34 highlights the rankings, while the study methodology is the appendix on page 36.

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RetailIndex

GLOBAL

An Evolving Profile While the world’s largest developing markets— particularly the BRIC nations of Brazil, Russia, India, and China—still tempt the largest global retailers and show no signs of slowing down, many smaller, untapped markets are providing new profit frontiers, particularly for regional and specialty players. New entrants in the 2012 Index include several small gems such as Georgia, Oman, Azerbaijan, and Mongolia that are becoming attractive destinations for global retailers, particularly specialty and luxury players.

These markets, though small in total retail market size, appeal to retailers targeting a concentration of wealth and seeking to be first movers in fast-growing markets. For the second year in a row, Brazil holds the top position in the GRDI, leading the way for Latin America, which has seven markets represented in the Index. Botswana, new on the Index, stands as a precursor to steady development of Sub-Saharan Africa, which could emerge as a major player in the GRDI in coming years.

Georgia, Oman, Azerbaijan, and Mongolia are small gems for retailers seeking a concentration of wealth and a first-mover advantage.

Additionally, technology is transforming the way retailers operate in developing markets. Shoppers’ expectations and behaviours are evolving, driven by both the economic climate and increased access to information through technology. Consumers are more connected than ever to brands, merchandise, and their fellow shoppers. The proliferation of channels and media outlets for retailer-consumer interactions has forced retailers to approach international expansion from a multi-channel perspective. Even in developing markets, people are increasingly willing to purchase online. Growth in e-commerce and mobile commerce outpaces physical retail in nearly every market, demonstrating that the Internet is both a viable complement to bricks-and-mortar operations and a pure-play channel for market entry.

Lastly, this year we highlight retail talent as a crucial differentiator in developing markets. Attracting and retaining talented workers is a core component of success for retailers in developing markets. As consumers become more sophisticated, the retail talent pool must keep up.

Retail, more than other industries, is finding it more challenging to attract and retain skilled workers. The new generation joining the labour force is vastly different from just 10 years ago in terms of the opportunities and the workers’ values and workplace expectations. Cheap labour is not always good, and available labour is not always what you need.

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33

GLOBAL RetailIndex Global Retail Development Index™ On the radar screen

Figure 1 To consider Time pressure (25%)

Lower priority

GRDI score

Change in rank compared to 2011

61.6

73.8

0

17.4

57.1

65.3

0

72.6

29.3

100.0

63.8

+3

84.1

56.1

60.0

52.3

63.1

-1

Asia

31.0

66.7

57.6

87.9

60.8

-1

Central Asia

27.0

68.7

92.6

54.0

60.6

N/A

MENA

86.1

93.9

MENA

69.3

98.3

17.4

50.4

54.4

98.2

75.1 58.5 N/A

43.8

55.5

62.9

67.2

11 Malaysia Asia

56.7

98.1

18.9

54.8 57.1 +8

12 Kuwait MENA

81.1

88.7

36.4

20.3 56.6 -7

13

Turkey

78.8

69.3

32.3

33.1

53.4

-4

14

Saudi Arabia MENA

63.1

81.8

35.4

33.0

53.3

-4

15

Sri Lanka

12.7

68.3

79.0

51.3

52.8

+6

16 Indonesia Asia

39.6

61.6

47.0

62.4 52.7 -1

17

Central Asia

19.2

41.5

93.6

53.2

MENA

45.8

65.3

69.5

23.8 51.1 N/A

Central Asia

31.5

47.5

75.5

47.5

Sub-Sahatan Africa Eastern Europe

14.4

88.1

42.7

23.7 49.7 N/A

34.6

46.5

55.9

55.6

22 Labanon MENA

60.2

30.2

48.9

54.2 48.4 -10

23

Colombia

Latin America

47.8

70.1

36.7

36.6

47.8

+1

24

Panama

Latin America

53.4

68.8

42.0

25.2

47.4

+2

25

Albania

Eastern Europe

24.6

47.6

74.8

39.9

46.7

-12

26

Russia

Eastern Euripe

80.2

53.6

19.6

32.2

46.4

-15

27 Moroco MENA

23.5

58.2

48.2

49.2 44.8 -7

28

71.9

70.0

15.1

20.3

44.3

29 Philippines Asia

28.3

54.6

52.5

38.3

43.4 -13

30 Tunia

MENA

35.7

55.4

65.0

14.4 42.6 -12

0 = low attractiveness

0 = high attractiveness

Region

Market attractiveness (25%)

Brazil

Latin America

100.0

85.4

48.2

2

Chile

Latin America

86.6

100.0

3

China

Asia

53.4

4 Uruguay

Latin America

5

India

6

Georgia

2012 rank

Country

1

United Areb 7 Emirates 8

Oman

9 Mongolia Asia 10

Peru

Azerbaijan

18 Jordan 19

Kazakhstan

20 Botswana

21 Macedonia

Mexico

Latin America

Eastern Europe

Asia

Latin America

6.4

Country risk (25%)

0 = high 100 = low risk

Market saturation (25%)

9.4

52.9 60.6 +1 58.9

57.4

51.9

50.5

48.4

N/A

-3

N/A

-5

+8

-6

0 = saturated 0 = no time pressure 100 = not 100 = urgency to enter saturated

Notes: 34 rankings have been updated to include revised data from Planet Retail to take into account prevailing macroeconomic conditions in the retail space. MENA = Middle East and North Africa.

Sources: Euromoney, Population Data Bureau, International Monetary Fund, World Bank, World Economic Forum, Economist Intelligence Unit, Planet Retail; A.T. Kearney analysis 34

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GLOBAL

RetailIndex

Region: Latin America The 2012 GRDI Findings Latin America’s expanding, dynamic retail sector and strong economic growth has kept it a leader in the GRDI. The region features several of the most attractive markets in the Index when comparing country risk and market potential (see figure 2).

For some retailers such as Carrefour, Latin American growth compensated for slower growth in other regions. Other retailers, including British department store Debenhams and Spanish supermarket chain Dia, are following this trend and making their own Latin America expansion plans. Although international retailers now dominate many Latin American markets, local regional leaders pose stiff competition. Mergers and acquisitions (M&A) remains an important growth vehicle for both international and regional retailers.

2012 GRDI country attractiveness 100

0 = high risk, 100 = low risk

Country risk (economic and political)

Figure 2

Malaysia

90

Botswana

Chile United Arab Emirates

Oman Kuwait

Brazil

Saudi Arabia

80

Colombia

Mexico

70 60

Panama Morocco Tunisia

50

Philippines

Sri Lanka

Georgia

Jordan

India

Indonesia

Russia

Kazakhstan

Albania 40

Uruguay

Mongolia

Peru

Macedonia

Azerbaijan Lebanon

30 20

China

Turkey

30

35

40

45

50

55

60

65

70

75

Market potential* 0 = low potential, 100 = high potential On the rader screen

To consider

Lower priority

Size of bubble indicates net retail sales, 2011

*Based on weighted score of market attractiveness, market saturation, and time pressure of top 30 countries Source: Planet Retail, Economist Intelligence Unit; A.T. Kearney analysis

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GLOBAL RetailIndex Brazil: Sustained performance Brazil leads the GRDI for the second straight year as the middle-class economy continues to gain strength. High consumption rates, a large urban population, and reduced political and financial risk make Brazil a top destination for international retailers.

As shown in the window-of-opportunity analysis in figure 3, Brazil’s retail market is in the peak phase after years of growth. Retail sales per capita have grown 12% per year for the past four years to reach $5,514, the third-largest of the GRDI countries. Moreover, retail market size increased 15% last year, and consumer spending has increased by 9% per year since 2007. In 2011, retail sales accounted for 70% of consumer spending. E-commerce is on the rise, sparked by recent regulatory changes, increased consumer confidence in home delivery, quality assurance, and an enforced returned-goods policy. Foreign hypermarkets such as Wal-Mart and Carrefour have entered the segment to tap into the country’s 24 million online shoppers. Other retail developments in Brazil include Debenhams reportedly venturing into South America with a store planned for Brazil. Luxury retail will see a boost, particularly with a new luxury mall in São Paulo. JK Iguatemi’s new luxury mall features Brazil’s first Topshop, Sephora, Lanvin, Miu Miu, and Gucci.

Less than a mile away, rival Cidade Jardim has planned several changes to compete more effectively, including launching the first Brazilian stores for designer labels Prada and Balmain, among others.

The GRDI window-of-opportunity analysis Opening

Peaking Uruguay(2012)

Higher

Poland (1995) Russia (2003) China (2003) Russia (2003)

Maturing

Oman (2012) Mexico (2003)

Russia (2012) Mexico (2012) Poland (2000)

Brazil (2005)

Botswana (2012) Russia (1995) Peru (2002) Hungary (1995) Poland (1990)

Lower

Closing

Russia (2012) China (2006) India (2012)

Brazil (2012) Mexico (2009) India (2009) China (2012) India (2003)

GRDI priority

Figure 3

Hungary (2000) Czech Republic (2010)

Definition

Middle class is growing; consumers are willing to explore organized formats; government is relaxing restrictions

Consumers seek organized formats and greater exposure to global brands; retail shopping districts are being developed; real estate is affordable and available

Consumer spending has expanded significantly; desirable real estate is more difficult to secure; local competition has become more sophisticated

Consumers are more used to modern retail; discretionary spending is higher; competition is fierce both from local and foreign retailers; real estate is expensive and not readily available

Method of entry

Minority investment in local retailer

Organic, such as through directly operated stores

Typically organic, but focused on tier and 36 cities

Acquisitions

Labor strategy

Identify local skilled labor for management positions

Hire and train local talent and balance expatriate mix

Change balance from expatriate to local staff

Use mostly local staff

Source: A.T. Kearney analysis

Chile has one of the most sophisticated and competitive retail markets in Latin America.

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Slovenia (2011) Poland (2005)

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RetailIndex GLOBAL Chile: Sophisticated and competitive Chile (2nd in the Index) has one of the most sophisticated and competitive retail markets in the region. It is one of Latin America’s fastestgrowing economies, with expected gross domestic product (GDP) growth of 6.2% in 2012. Additionally, the country has low financial risk— its inflation rate of 3.3% is close to the Central Bank’s target—and country risk roughly the same as developed nations such as the United States, France, and the United Kingdom. Modern retail has surged in Chile because of a strong economy, significant investments by local retailers, and the 9% annual increase in modern retail space over the past five years. In 2011, Wal-Mart opened 35 new stores in small, convenience, and hypermarket formats, and the favourable conditions attracted other international retailers. Some have chosen Chile as their first operations in South America; for example, U.S. clothing retailer Gap Inc. opened a store in Santiago and has plans to open two more, in addition to a Banana Republic store. Costanera Center, a massive new shopping destination, will host the Chilean debut for several top-end brands, including Swiss watchmaker Longines, Dutch clothing manufacturer G-Star RAW, and French apparel retailer Façonnable.

Uruguay: Coming into its own While historically dependent on its larger neighbours Argentina and Brazil, Uruguay (4th) is becoming a retail destination of its own for locals and tourists alike. Despite its relatively small local population, Uruguay’s high rate of urbanization and strong consumption levels are attractive to retailers. The economy is progressing (annual GDP growth of 6% since 2007), unemployment is at an all-time low, and the country has made significant gains in reducing poverty, all of which are driving consumer purchasing power. Retail has risen 30% a year since 2008.

Peru has continued its strong economic growth for a decade, evident in an increase in disposable income and consumer confidence

Peru: An opportunity in modern retail Peru (10th) has continued its strong economic growth for a decade, evident in an increase in disposable income and consumer confidence.

Peru’s GDP rose 5% in 2011, and retail sales increased 13%. With modern retail making up a relatively small share in Peru, many regional players see an opportunity to enter, causing the country’s organized retailers to play catch up. A major driver of growth is easier access to consumer credit—the value of credit card transactions rose 25% in 2011. While the largest city, Lima, has limited space to attend to middle- and upper-income consumers, retail growth outside of the city boundaries continues. Several specialty apparel retailers have entered Peru, where most formats still cater to low- and middle-income consumers. Mass-market players such as Gap and Spain-based Inditex (which includes Zara), luxury retailers Giorgio Armani, Chanel, and Brooks Brothers, and sporting goods retailer Puma all opened or will soon open their first stores in Peru.

Colombia: A growth story Colombia (23rd) continues its impressive economic growth. With solid fundamentals, 6% annual GDP growth, and moderate inflation of 3.4%, the country was rated investment grade by all rating agencies in 2011. Retail segments, such as warehouse clubs and department stores, are also attracting foreign investments. U.S.-based Price Smart will open its second store in 2013, Falabella plans to expand in Colombia as part of a regional strategy, and Chile-based Ripley is also considering expansion into Colombia. In addition, Colombia is part of the South America expansion strategy for apparel retailers such as Gap and Emporio Armani, which opened flagships in Bogota and Medellin.

Panama: High growth draws investment Panama’s GDP growth of 10% in 2011 was among the highest rates in the region. Although Panama (24th) is small, income distribution is highly skewed toward an economically powerful upper class. The country also boasts strong growth in retail real estate development. Its freetrade zone puts it in a unique position as a regional shopping centre and continues to attract global retailers. In 2011, Gap selected Panama as its first Central American location, opening one Gap outlet and one Banana Republic store, and it plans two more stores for this year. © ATKearney. Reprinted by the permission of A.T. Kearney Inc, copyright 2012

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RETAIL News Multi-brand retail FDI: Government panel to sort out internal trade issues The government will set up a committee after interacting with state governments and traders by November 2012. The committee will be headed by Shri K.V.Thomas, Union Minister for consumer affairs, food and public distribution, to sort out internal trade issues which could interfere in the smooth functioning of multi-brand retail chains “We will find an amicable solution to facilitate the entry of multinational retail chains in our country which will bring efficiency and investment in retail space, especially at the back-end,” said the minister.

He added, “The government will address all issues facing small traders. We will consult all stakeholders once the committee starts its operations. The government is working towards creating a barrier-free common market for agriculture products across the country. We have to systematically remove internal controls and restrictions to enable direct marketing between farmers and NGOs, cooperatives and private companies.

Post FDI clearance, USA based Fossil Inc to invest US$ 4.5 million in India Fossil Inc, US-based, high-end watches and accessories manufacturer has proposed to invest Rs. 20 crore (about US$ 4.5 million) in India in a fully owned single brand retail venture. The proposal, made by Fossil India Private Limited (FIPL), a 100% subsidiary of Fossil Inc is being examined by the Department of Industrial Policy and Promotion (DIPP).

“FIPL has proposed to invest Rs 20 crore in a 100% single brand retail venture,” a senior DIPP official said.

Fossil Inc is the third single brand retail proposal that has been cleared by the department, marking a significant progress in the government’s attempts to attract foreign direct investment (FDI).He added, “Once we are satisfied that all the terms and conditions for 100% FDI in single brand retail are met, we will give it to the Foreign Investment Promotion Board (FIPB) for clearance,” the official said. According to the official, Walmart, Carrefour and Tesco and several others are also interested in entering the Indian market in front-end operations.

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News

UK-based footwear chain Pavers England Ltd has received clearances to set up its wholly-owned retail chain in India. The Foreign Investment Promotion Board (FIPB), the nodal agency for FDI approvals, has cleared Pavers’ proposal, making it the first 100% FDI proposal in single-brand retail to be cleared under the new policy. The proposals were cleared by FIPB, headed by Economic Affairs Secretary, Shri Arvind Mayaram.

The company plans to invest US$ 20 million in the Indian venture. Currently it sells footwear in India through a franchisee agreement. Pavers Foresight Smart Venture Mauritius, a US$ 60-million equal joint venture between the UK-based Pavers and Foresight group, had applied in January to invest US$ 20 million in Pavers England, the Indian company retailing footwear,

Indian government approves Brooks Brothers & Damiani’s FDI proposal

RETAIL

Pavers England gets the FDI nod, proposes upto 500 sales points in 2 years through a master franchise. As per the company officials, it has been sourcing almost 40% of its brand requirements from India and the rest from Vietnam, Italy and China. The master franchisee for Pavers England is Triton Retail.

As per its strategy, Pavers will invest in Triton or may acquire 100% and take over the retail operations. The company has set a target of opening 120 new exclusive stores apart from increasing the number of shop-in-shops to up to 350 during the same time period.

ready-to-wear suits in 1845, has outlets in the U.S., South Korea, Japan, China, Taiwan, Singapore, France and the U.K. In addition to its iconic shirts and suits, Brooks Brothers sells other apparel and accessory categories and has a designer collection called Black Fleece, designed by Thom Browne. Including Damiani, the government approved a total of three proposals for Foreign Direct Investment in single brand retail, valuing up to Rs. 106 crore in total.

Italian luxury brand, Damiani has received approval from the government of India for its proposed Foreign Direct Investment proposal in single brand retail, through a 51:49 joint venture with Mehta’s Pvt Ltd. As per the reports, 51% would be foreign investment.

Meanwhile, Brooks Brothers has been given permission to invest Rs. 6.2 crore in its recently announced 51:49 joint venture with Reliance Brands, a unit of Reliance Industries. Brooks Brothers, America’s oldest clothing retailer, had announced in June 2012, its plan to set up the joint venture with Reliance Brands, a unit of Indian conglomerate Reliance Industries. Global retailers such as Brooks Brothers are looking to set up operations in India as the country’s growing middle class increasingly is adopting western trends and tastes. Brooks Brothers, which introduced the first

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39

RETAIL News Luxury brands Dolce & Gabbana, Stella McCartney & Alexander McQueen eye Indian JV Luxury brands Dolce & Gabbana, Stella McCartney and Alexander McQueen are looking at joint ventures as a vehicle to open exclusive stores in India. Ms. Priya Sachdev of Indian-based TSG International Marketing has confirmed the company is in preliminary talks with the brands.

The expansion plans come at a pivotal time for luxury brands as Indian luxury market is set to grow Rs. 81,423 crore (US$ 14.7 billion) by 2015 from Rs. 32,126 crore (US$ 5.8 billion) in 2011, according to projections by AT Kearney. “The market is growing steadily and many brands want to have bigger businesses here,” said Shri Arvind Singhal of Technopak Advisors. “Unfortunately, in India there are very few multi-brand luxury formats,” he added.

Meanwhile, TSG International Marketing plans to open another two Kitsch stores next year. Kitsch, is a luxury multi-brand store which started its operation in 2005. “By the end of this year we will have another store in Hyderabad and one more in Chennai by next year. We are also planning to bring more brands,” said Sachdev. Besides Dolce & Gabbana, Stella McCartney and Alexander McQueen,

Kitsch’s portfolio also includes YSL, Diane Von Furstenberg, Halston Heritage, Lanvin, Celine, MCQ, Herve Leger and Catherine Malandrino.

Textile Ministry to set up a Wool Bank in Meghalaya The Northeast Indian state of Meghalaya is all set to establish a wool bank in the state with sponsorship from the Union Ministry of Textiles. During the recent inaugural ceremony of the 2nd Shilong Woollen Expo 2012, the state’s deputy chief minister, Shri Bindo M. Lanong stated that the state would also gain self-reliance in wool production with the support of Central Wool Development Board (CWDB). Shri Lanong said that the Textile Ministry would focus on rearing of sheep and angora rabbit and other wool producing animals, training and setting up of infrastructure for wool exhibitioncum-sale, as well as on information and technical expertise.

He stated that Meghalaya also has immense potential in wool rearing and that sheep rearing is not yet undertaken on a large-scale in the state. Shri Lanong said the establishment of a wool bank, which is in its second last stage of completion and likely to conclude by forthcoming winter season, would give a boost to sheep rearing industry in the state.

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News FASHION

Collections Fast Fashion A comprehensive offer of 2 shows with the entire fashion chain under one roof…

The major event for the fast-fashion industry, Fast Fashion Lille will be held from November, 28 to 29, 2012 at the Lille Grand Palais. TISSU PREMIER, the international show for fashion fabrics and trimmings and COLLECTIONS, the international show for collections and accessories for fashion retailers will be the two complementary shows for fashion industry professionals that will bring the entire fashion chain under one roof in northern France, one of the sector’s major hubs. The theme of recycling, environmental issues and sustainable development from waste sorting to new recycled materials will be reflected in the programme.

The show dedicated to private label for fashion retailers will be presenting an offer of 100+ exhibitors from 10 countries in the Euromed region, providing turnkey solutions for fashion-forward collections of women’s, men’s, and children’s ready-to-wear products and accessories. Around 100 textiles manufacturers have signed up to exhibit at the upcoming show including 15 newcomers from Italy, Turkey, Belgium and France. A number of exhibitors will also be presenting fabrics that integrate eco, organic fair-trade processes and materials. Buyers will be able to choose from an extensive selection of fashion clothing, sportswear, denim, scarves, bags, eyewear, etc everything they need to help them update their summer 2013 collections and purchase new products for winter 2013. The fabrics and collections trends forums talks will be hosted by the design studios such as Peclers, Nelly Rodi and Trend Union which will provide key information on the sector’s emerging trends.

National Institute of Fashion Technology NIFT organizes a training programme for tribal women...

NIFT recently organised a special training program on hand-woven home décor items for tribal women in naxal-affected areas of Karnataka to safeguard their future and revive their lives. The designs created by NIFT will be reproduced by these women on bed sheets and towels.

The state government is constructing community weaving centres at Nemmaru and Hulugarubylu villages in Sringeri Taluk. The Handloom Development corporation has already trained 60 women in the villages of Gurige, Uduthalu, Nemmaru, Hulugarubylu, Anchinakodige and Belagodukodige. The Corporation has given looms to the tribal women to weave bed sheets, towels and polyester shirts which are expected to hit the market by November 2012 under a new brand name.

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FASHION News Central Silk Board Central Silk Board proposes Silk trousers made out of Wild Silks of India...

Giorgio Armani

Futuro Textiles An exhibition which mixes science, technology and art to textile...

Building on the successes of its 2006 and 2008 editions, which, from Lille and Kortrjk to Shanghai through Lodz and Barcelona, attracted a passionate and attentive international audience, FUTUROTEXTILES presents a brand new exhibition which will be held at the European Centre for Innovative Textiles (CETI) a multi-sector technological platform, from October 13 to December 30, 2012. The exhibition aims to showcase the diversity and originality of textiles through the persistent efforts of scientists, entrepreneurs and designers. Balls of spider silk, dresses made out of wine molecules, optic fibre curtains, temperature controlling cardigans, inflatable surf boards, reflecting bags, flax fibre houses will be the part of the exhibition. Clothing, design, architecture, sport, protection, transport, health, well-being and artistic works will appear side by side all through a thematic itinerary winding between science and culture, education and re-creation, reality and fiction, pragmatism and lyricism. The aim of the exhibition is to reassert a quality that characterizes the Nord Pas de Calais region, historically linked to the textile industry.

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Silk is being used for making saris, women’s dress material, purses and carpets but this delicate and shiny fibre will now be used for making trousers. The novel idea of marketing Silk trousers made out of wild silks of India is proposed by Central Silk Board.

According to the proposal, the trousers will have a rough finish like jeans. The Silk fibre needed for weaving two silk saris will be required to make one pair of trousers. To ensure a successful launch, the board also organised a consumer survey for which it received positive response. These trousers are waiting to make a commercial entry. The board has already made a prototype and completed all tests on the toughened silk material. Shri TD Koshy Silk Market consultant, Union ministry of textiles commented that, “From ancient times, India has been into silk trade. At present, a lot of silk export is happening from India to Japan. We produce some 23,060 tonne silk every year which generates a turnover of Rs. 25,000 crore. The commercial production of the silk trousers will be entrusted to private companies. The private manufacturers are already established and have loyal customers. Once official formalities are completed, the board will reach out to private apparel makers.” As per Shri R B Tandav, deputy director (inspection) of the board, the Government of India is keen on promoting silk industry as production of one kg of yarn generates employment for 10 people.

Once the silk trousers are launched in the market, they will carve out a new business and generate more employment.

News FASHION The Boulevard Pakistan Fashion Design Council launches its Store in New Delhi...

Pakistan Fashion Design Council (PFDC), which promotes fashion talents of Pakistan, launched very first flagship store, PFDC — The Boulevard, in India in collaboration with New Delhi’s prominent Bindra family. The launch was followed by a fashion show, where 18 designers displayed three pieces each to give the Delhi crowd a taste of Pakistani fashion. The store has a contemporary and classy look and is based on shop-inshop concept with individual spaces for each designer. The store showcases exclusive creations of more than 18 prominent fashion designers from Pakistan. The store will retail apparels designed by renowned Pakistani labels like Karma, Libas, Kamiar Rokni, Hassan Sheheryar Yasin, Elan Design House, Sana Safinaz, Asifa Nabeel, Sonia Azhar, Fahad Hussayn, Nickie Nina, Iman Ahmed-Body Focus Museum, Nida Azwer, Ayesha Hashwani, Feeha Jamshed, Umar Sayeed, Rizwan Beyg, Layla Chatoor and Nasreen Shaikh.

Wills Lifestyle India Fashion Week S/S 13 Project for North East Designers...

At the recently held Fashion week organized by Fashion Design Council of India in Delhi at Pragati Maidan from October 6 to 10 2012, the Ministry of Textiles, Government of India reached out with a ramp show and stalls that showcased designs from North East. The talented designer, Atsu Sekhose, from the North-East, showcased an eclectic line that captured the flavour of the region, its vast wealth of textiles and intricate designs, but with a modern twist. Atsu has also recently been bestowed with the Governor’s Award by the Nagaland Government for his contribution to the world of fashion and his fashion presentation also reflected the essence of not only Nagaland, but also Manipur, Assam and Mizoram. Besides the show, there were stalls set up, which showcased crafts from various designers from the North-East including, Manipur, Shillong, Assam and Arunachal Pradesh, curated by Mala Baruah. The FDCI President, Sunil Sethi said, “We are grateful to Smt. Kiran Dhingra, Secretary Textiles, for her patronage to the North East Project. This is a good example where the Ministry of Textiles and FDCI have teamed up to promote textiles from a particular region.”

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Salons & Fairs Review Texworld Paris & Apparel Sourcing Paris concluded with an increase in product variety for the European market...

Exhibitors delighted by the quality of visitors

Texworld celebrated 15th anniversary with a session buzzing with creativity Exhibitors satisfied with high-calibre visitors. Winter collections showed classical charm and innovative materials and colours.

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The product lines for next winter attracted major buyers, brand names and designers, who came to meet their suppliers and new exhibitors. Despite a railway strike on the first day that impacted visitor arrivals, 811 Texworld exhibitors and 162 Apparel Sourcing exhibitors welcomed a total of 14,400 visitors from 104 countries over four days, (-6%) reflecting the global market climate and the situation in Europe.

The sales figures for the majority of businesses were very satisfactory. Texworld’s positioning as a place to find the whole spectrum of qualities at the best prices has been confirmed and has contributed to these positive results. Good attendance by the British (+3.33%) and renewed interest from Eastern Europe was duly noted. Brazil stood out from other American countries with a plus of 20%. A noticeable increase of visitors from Saudi Arabia (+22%) and UAE (+11%) brought strong buying power to the floor.

“We received some substantial orders from our regular customers and we’ve been able to establish some interesting new contacts. Texworld continues to represent an excellent platform for firms to expand their markets,” says Hussain Sajid, Marketing Director at the Pakistani denim producer Faisal.

Growing interest on the part of buyers in organic and eco-friendly fabrics Texworld dedicated one day to sustainable development, calling it “Sustainability Day”. A host of visitors attended the lectures on vegetable dyes by Betty de Paris and on certification of organic fabrics by Ecocert. 83 weavers, in the 3 sections, showed organic and eco-friendly fabrics, out of a total of 811 exhibitors at Texworld.

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Salons & Fairs Review Apparel Sourcing Paris is a new meeting place to find the best solutions in fashion & fashion accessories sourcing...

Los Angeles Mayor, Antonio Villaraigosa (L) with Francisco Sánchez (R), Commerce Under Secretary for International Trade, in attendance to launch the “Made in Los Angeles” Pavilion

The 162 exhibitors from Europe, Asia, the United States and Mauritius made Apparel Sourcing Paris a major rendezvous for sourcing for the European market.

The wide range of products for men, women, children and accessories offered included the entire price spectrum.

Apparel Sourcing Paris recorded an increase of almost 15% in registrations compared with the same period in 2011, with new exhibitors from Europe, Asia and the United States. The show was certainly more international with the participation of a dozen or so new producers from Belgium, India, Hong Kong, Japan, Turkey, the United States and Taiwan to enhance the ranges of accessories, shirting and knitwear. This goes to confirm the exhibition’s role as the foremost platform for European sourcing in terms of diversity of exhibitors and variety of products.

A number of manufacturers offered products with organic materials like Craft Aid from Mauritius or eco-friendly materials like the Indian belt maker RNG Exports India, whose metal buckles contain no nitrogen. An ever-increasing number of buyers are on the lookout for these products even if organic and eco-friendly materials are between 15 and 25% more expensive than conventional fabrics.

Here is a review of what some of these newly registered exhibitors offered:

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Shirting Nomura (Japan) founded in 1904, the eponymous holding company has been able to diversify and is very active in the clothing sector. Its high-end shirts, 90% of which are designs for men, are highly appreciated for the quality of fabrics and sophisticated finishes. The firm favours functional fabrics to maximise comfort and care.

Kayen Teks Tekstil (Turkey) collections made exclusively in 100% double-twist cotton, giving the shirts an incomparable fit.

For its own models, the firm relies on casual cuts with a beautiful finish. As a private label, buyers can have items customised to the extent they require.

Dresses and blouses Masarati (Taiwan) their fresh collection, which is mid-range and very girly, appealed to customers in the 20 to 35 age group.

Plenty of mini dresses with sophisticated cuts and fabrics were on offer.

Knits Fabmill from the United States had its sights set on the market for the 25 to 45 age group with its feminine collection in fluid fabrics.

Paramount Clothing (India) had lots of feminine separates with a wide range of products and prices. These offers revitalised firms’ lines of products at a time when European clothing consumption is looking for a way forward for growth.

Spotlight on the range of accessories from India The fashion outlook for next summer and winter puts scarves in pole position when it comes to must-have accessories for men’s, women’s and junior collections. India is one of the great specialists for scarves and shawls with a broad and varied range, both in terms of fabrics and patterns as well as in added value like embroidery. It showcased its expertise at the exhibition with some twelve manufacturers who offered collections to update winter and pre-collections for 2013 cruise wear.

A highlight of what was on show with: Jain Shawls (India) shawl lovers’ wishes were fully satisfied by this company: a profusion of scarves and shawls, prints, magnificent embroidery offering all the traditional Indian skills for exquisite scarves and shawls. There were also jacquard patterns made on the most advanced machines, for those who looked for more understated models, in particular for men. Prices ranged from average to the very top of the line.

Ahujason Shawl (India) actually no longer needs to be presented to buyers who can’t resist its luxurious silk and cashmere blends or beautifully simple scarves in washed cotton at attractive prices.

Silk Appeal (India) which presented several collections: large shawls in exquisite materials in an array of subtle hues for the high end, shimmering scarves embroidered with silk thread for the bohemian line and a range of linen, cotton and blends for casual wear.

R.K. Overseas (India) had the boldest collection with swathes of solid colours and fur trimmings. Scarves and shawls, for the mid-range to high-end market, are made of silk, cashmere or in a wool/silk blend.

Bright Star (India) showcased its collection in wool/silk or 100% wool with hand-embroidered paisley patterns. Their collections were perfectly attuned to the trends and balance quality and price.

Buyers were easily able to find this range of products at the exhibition as the organisers had decided to provide it with plenty of visibility.

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Salons & Fairs Review Driven by the luxury & international markets, creative energy boosts Première Vision & Expofil

Presence of the Major Markets

“PREMIÈRE VISION, the largest and the most comprehensive fabric trade fair held in Paris from September, 19 to 21, 2012. The second edition of Première Vision Pluriel saw the participation of 46,266 visitors.”

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In spite of the deteriorating economic environment, Première Vision /Expofil strengthened its position. The exciting figures confirmed the enthusiasm, energy and desire in a three day show. The show revealed a remarkable, positive stability in terms of the September 2011 edition (+ 0.2%) and is even up 6.9% compared to February 2012.

The European Union as a whole remained stable at the show. And even countries from southern Europe, which are facing the most difficult economic challenges, maintained their attendance: + 0.6% for Italy, with a contingent of 3,767 visitors and only -0.2% for Spain, with 2,480 visits. France (-0.9%).

Denmark (+14%), Belgium (+9%) and The Netherlands (+4%) registered the most notable increases.

To the East, Russia, which also hosted Première Vision Moscow, continued its upward trend with Ukraine at +47%.

The number of Turkish visitors grew, totaling to 1,268 visits.

Knitwear Solutions: creative flat-bed knits start at Première Vision U.S.A once again topped the bar of 2,000 visitors (with 2,156 visitors, precisely), an increase of 8% over the year ago show. Another big key market in the product area was Japan: despite a complicated economic situation, Japanese results were significantly higher, +19% (1,646 visitors). The single disappointment in the Asian region was the decline in South Korean visitors (-23%). Alongside these major, mature markets, emerging markets continue to grow, particularly Russia, China (1,646 visitors, +11%) and Brazil (555 visitors, +4%).

Optimism Factor Over the past few seasons, fashion has been growing colourful, decorative and richer in terms of fabrics, textures and the work that goes into products. At the fair, weavers showed marvelous creativity and inventiveness in Autumn /Winter 13-14 collections. One of the unparalleled strengths of the show was the participation of 33,819 international visitors in the fair. Despite difficult economic context world is facing, the optimism and energy was felt throughout the aisles and the stands.

In recent years, knitwear has been growing in collections.

The reasons behind this new infatuation are many - including perhaps a search for comfort and ease, which are ever more important in a nomad society where people move and travel extensively. Knits are a technical product, worked on by specialists, and fashion companies entrust them to special teams. And it is for them - the designers, product heads, and buyers in charge of developing flat-bed knitwear collections that Première Vision has created a dedicated area, Knitwear Solutions, within the show.

The new space dedicated to creative flat-bed knits was a success from the outset. 42 companies (international knitters, specialized spinners, the global leader in flat bed-knitting machines, and the knit studios present at Indigo) brought a real knitwear solution to designers, product managers and specialized knitwear buyers by presenting creative collections for Autumn/Winter 13-14.

With this new initiative, brands now have a complete offer, allowing their different teams to co-ordinate and work in synergy, together in the same group of shows. This means a real increase in efficiency and coherence for building their collections.

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Salons & Fairs Review

With its new context - offer for woven and circular knits, Expofil was clearer and more readable to visitors and buyers. There were numerous product proposals as compared to the last year. Visitors found innovations for Summer 2014, dedicated to yarns and fibres in the aisles of the show.

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This was a significant edition for Expofil because it corresponded to a notable recovery of the show for the spinning sector, one of the textile sectors hardest hit by the economic situation in recent years. With 51 exhibitors, compared with 43 last September, a 19% increase, Expofil returned to a level that it has not achieved since February 2006.

The show gained its strength and diversity with the participation of 11 new exhibitors. They enriched all areas of the offer: silk, wool, linen spinners, specialist in longue-fibre cotton yarns for shirtings, indigo yarns, as well as major players in cotton spinning, viscose or polyester.

Also notable was the return of fibre producer Dupont Sorona, the world leading linen fibre producer Linificio e Canapificio Nazionale (Italy) and the major throwster Polyteks (Turkey), who testified to their confidence and interest in the Paris show. The fibre producers at Expofil proposed a multi-market offer, targeting both professionals working in wovens and those in flat-bed or circular knits.

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BRAND News VINEGAR Vinegar, launched an exclusive boutique for ladies in Bangalore to celebrate a little bit of craziness inside every woman, the daring and the edge behind her elegance. A collection of imaginative, quirky, uber cool, sophisticated, crazy and well designed apparel, the collection caters to women in the 20-40 age group and stocks an elaborate range of day wear, office wear and evening wear. The most striking feature of the store is that there is no window display instead the story is told by mannequins standing one behind another on an illuminated platform that runs along the length of the store transforming it into a ramp. The brand colours black and white with vibrant Vinegar hues dominate the dĂŠcor and spells quirkiness at its best. Further enhancing the brand experience is the collection of shoes and accessories in exciting colours and designs.

INKFRUIT.COM Inkfruit.com has a wide variety of cushion covers to play with your moods.

Spruce up your room with the cushion covers made of high quality velvet.

Inkfruit.com assures to offer class and comfort according to your taste. Music lovers can take home printed musical instruments cushion covers while spiritual seekers can pick Buddha prints.

You can also celebrate romance with your beloved with love prints on the cushion covers. Priced at Rs. 349, the high quality sublimation printing ensures durability and vibrancy.

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News

BRAND

OVS Italian fast fashion brand OVS launched its AW12-13 collection exclusively for women, comprising of houndstooth print coats, red cloche hats, thick cable knit sweaters, colour block jumpsuits and cut pea jacket. The collection is available in vivid shades of plum, burgundy, emerald greens, ochres and deep blacks. The collection also offers knitwear that includes tops with batwing sleeves or turtlenecks embellished with applications. Dresses are created either in tricot or in jersey with geometric prints. The colour range offers delicate contrasts, such as camel and creamy white, petrol blue and cornflower blue. The collection pays tribute to the 1980s pop style with asymmetrical touches in dresses, oversize volumes in jersey garments, ultra-fitting trousers, maxi-cardigans, stretch miniskirts, spotted viscose dresses with leggings, and large t-shirts worn over 5-pocket stretch jeans. With 11 stores across the country OVS has taken the Italian shopping experience to Bangalore and Chennai as well.

WILLS LIFESTYLE Wills Lifestyle, ITC’s Premium fashion brand introduced its Autumn Winter 2012 collection of clothing and accessories for men and women. Inspired by the thriving artistic and intellectual culture of Hampton – the playground of the rich and famous, Hampton’s League for Wills Sport Men collection embraces a new aesthetic philosophy, modern in its choice of patterns and fabrics. Regalia for Wills Classic Men offer premium shirts crafted to immaculate standards in ultra-fine count American Pima cotton and silk cotton blends.

Colour Convention for Wills Sport Women is a stylish mix of sumptuous bright colour blocks and clean modern silhouettes all paired with pleats, soft ties, ruffles and delicate lace details.

Craft Deluxe for Wills Clublife is a perfect evening wear that will flatter your body with sophisticated dresses and demure separates in lace and silken fabrics. Available at 88 Wills Lifestyle stores in 37 cities and all leading department stores and multibrand outlets across the country.

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BRAND News CELIO Celio, the contemporary international menswear brand brings to you a look straight from the fashion alleys of New York.

With the onset of winter, Celio gives a grungy twist to your winter wardrobe. A slick choice to go with the dipping temperatures, the use of various layers brings forth a very strong street wear style highlighted with a heavy influence of denims right from the classic washed and stoned to the experimental and waxed raw jeans. Team it up with the stylish & classy coats, jackets and hi neck pullovers in variety of colors that give it a vintage look and touch. Celio breaks the myth of wearing coats only as a formal wear. The trendy coats are designed to flaunt with both formal and casual attire. Team it up the with regular yet stylish Celio denims. Celio offers an array of modish jackets coupled with an element of raw style. Cargos are the most evergreen clothing in one’s wardrobe. One can match up the regular brown cargo along with a polo neck CelioT-shirt which gives a spunky finish to the casual look.

Parx Parx, the premium casual lifestyle brand launches Autumn Winter 2012 Collection which is inspired by nature’s palette of colours and hyper culture. Parx reflects the persona of the Gen- next who is energetic, aggressive, outgoing and dynamic. The Parx Autumn Winter 2012 collection introduced three interesting concepts. Flag Fiesta – Dedicated to London Olympics, where over 200 countries are coming together to create a cultural mix, this range reflects global unity.

Divine Retreat- Inspired by the divine compassion and peaceful sprit, the theme reflects a celestial environment. Colors are inspired from the rustic, sensorial and organic tones of rust, red and orange shades. Regiment – The collection pays homage to the life inspiring stories, heroics, sacrifices and victories. The theme derives its color from the tones of Army green, browns, olives& blacks with the first tones in aeronautical blues and white shades. The collection is available at all Parx Stores, The Raymond Shop, Central and other leading multi-brand stores across the country.

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Calendar

FASHION November 2012

Event

Date

City, Country

Web

Source Zone Fair Nov 5-7 2012 Gurgaon, www.sourcezonefair.com

India Kingpins Show Nov 5-6 2012 Dhaka, Bangladesh Nov 5-7, 2012 Cannes Maredimoda Intimoda France

www.kingpins.info

www.maredimoda.com

Indiana women’s Apparel club Nov 7-8 2012 Indianapolis www.midwestapparelreps.com U.S.A Tissue Premièr Nov 28-29, 2012 Lille Grand

Palais, France

www.tissu-premièr.com

China Sourcing Fair, Nov 28-30 2012 Johannesburg, www.chinasourcingfair.com Garments & Textiles South Africa

Cosmoprof Asia Nov 14-16, 2012 Hong Kong, www.cosmoprof-asia.com China

Denim by Première Vision Nov 28-29, 2012 Parigi, www.denimbypremièrevision.com France Tel Aviv Fashion Week Nov 28-29, 2012

Tel Aviv, Israel

www.tlvfw.com

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INDIA

The New & Improved...

The official magazine of Apparel Export Promotion Council

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August 2012

Vol. 4 Issue 4 April 2012

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Tex Trends India 2012 Special Edition

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Export Promotion Council for Handicrafts

Handloom Export Promotion Council

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Powerloom Development & Export Promotion Council

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Wool Industry Export Promotion Council

APPAREL INDIA offers you the ability to reach your target market through our print as well as online medium. We reach a total unique audience of over 1,00,000, through our monthly magazine and a combined audience of over 5,00,000 through our events, only from India. The most influential industry leaders, apparel manufacturers and exporters in India subscribe to APPAREL INDIA for its exclusive information on government policies, decisions, developments and industry statistics. Apparel India’s print circulation is controlled, ensuring we deliver to a targeted and well-defined set of Indian retailers, brands, apparel manufacturers and other professionals in the industry.

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PRESS Collage Tirupur survives odds, but workforce feels the pinch

Trade Deficit at 11 month High on Continuous Export Slide

Exports dip 11%, imports rise 5% Exports drop for 5th month on week global demand; imports up

India peeved with US Tactics of Blacklisting

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Apparel Export Promotion Council Participates in

Hong Kong Fashion Week Fall / Winter 2013

14-17 January 2013 Hong Kong Convention and Exhibition Centre

Hong Kong - Fashion Capital of Asia Perfect Hub for Fashion Sourcing Targeting Top Buyers

Venue :

Participation charges

Hong Kong Convention & Exhibition Center, Hong Kong

This is a right opportunity for you to participate in large apparel global market. The booth package and other details are as follow

Date :

Particulars

14-17th January, 2013 (Monday, Tuesday, Wednesday and Thursday)

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Early Bird Discount (If payment is made on or st before 31 October, 2012)

(Rs.10,000/-) Rs.1,60,000/-

After Early Bird Discount (If payment received After 31st October, 2012)

Rs. 1,70,000/-

No. of Booths : 70 Booths “INDIA PAVILION” Payment Mode : Participation fee by way of Demand Draft/Pay order in favour of “APPAREL EXPORT PROMOTION COUNCIL” GURGAON

Participation charges (Rs.)

For more information please visit: www.aepcindia.com

For further details:

Mrs. Sneh Lata Sharma, Joint Director (F&E) Apparel Export Promotion Council, Apparel House, Institutional Area, Sector-44, Gurgaon -122003, Haryana (India) Tel: 0124-2708000-003, 2708150 (Direct), Fax: 0124-2708004-005, Mobile: +91-9899993817, E-mail: slsharma@aepcindia.com

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