ISSN NO.: 2278-8972 RNI NO.: MAHENG / 2012 / 43707 JUNE - 2015 Volume 3 Issue 6 Pages 44
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Dark clouds on textile horizon
Cotton Uncertainty Discriminatory Excise Duty Depressed Demand
Cost Escalation
Long pending TUFS benefits
• Interviews : BIRLA & TYCO • Overview of Nonwoven Bonding Technologies • Make in India- Future of Indian Manufacturing • Show Report : TAI/ TEXPOSURE/ COTTON USA/ BIRLA/ GOTS • Market Report : Cotton & MMF Fibre
TEXTILE TESTING & TECHNICAL SERVICES TEXTILE TESTING & TECHNICAL SERVICES TEXTILE TESTING & TECHNICAL SERVICES TEXTILE TESTING & TECHNICAL SERVICES TEXTILE TESTING & TECHNICAL SERVICES TEXTILE TESTING & TECHNICAL SERVICES TEXTILE TESTING & TECHNICAL SERVICES TEXTILE TESTING & TECHNICAL SERVICES TEXTILE TESTING & TECHNICAL SERVICES
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EDITORIAL “Is it not true that textiles is the concern of the entire Indian economy?�
Disheartening Situation The textile industry enjoys pride of place in the Indian economy. With a record earning of US $ 41.4 billion in 2014-2015, the textile Industry is one among the largest foreign exchange earners for the country. It is also one of the largest employer in the country engaging over 10 crorepersons directly and indirectly. No wonder Government is giving due emphasis on technology upgradation and skill development. However, not all is well with the textile industry. The rate of growth in exports is languishing. Cotton production which is a gamble on monsoon is always a risky business. If cotton production is short, the industry suffers. If cotton is bountiful, growers suffer unless additional cotton is shipped to other countries. While doing so, good cotton is exported and the industry has to contend with the lower quality. The industry does not get adequate cash-credit limits to aggressively purchase cotton in a situation of surfeit. The cost of working capital is too high. And the high costs of power and water are perennial issues. The man-made fibre industry is also not in the pink of health. The discriminating excise duty structure is certainly affecting man-made fibre textile industry. Wage levels and other perquisites increase every 3/5 years and there is no escape from it, even if such an increase does not take place under any statute. It needs to be noted that all employees including workers get clearness allowance linked to the cost of living index, bonus, whether there is profit or loss, house rent allowance, medical facilities, provident fund, gratuity, leave with wages etc. This year Minimum wages in Maharashtra have been increased significantly. In the case of garmenting industry the increase is of the order of 46%. In the Powerloom industry it is 62 %. The increase is beyond the paying capacity. Presently the cost of working capital is very high and all eyes are set on RBI for a signal to bring down the interest rate. The industry is also facing the problem of demand. While export demand is flat, domestic demand is shrinking. The consumer demand will go up only with policy support when the purchasing power of consumer will increase. The solution tomyriad problems of the industry is to bring down its cost structure through the availability of substantial adequate funds to stock cotton during the period of abundance, permission for rationalisation of labour strength through a dialogue with the Labour Unions, who should be convinced of the need to create more jobs instead of protecting a few ones. Above all TUFS should continue with renewed vigour and adequate allocation of funds for prompt disbursement of TUFS benefits. The introduction of GST, which has been welcomed by the industry may address the problem of discriminatory excise duty on cotton textiles and man-made fibre textiles. It is expected that in the GST regime, excise duty will be the same whether the raw material is cotton or man-made fibres. It is gratifying to note that government may open dialogue with the industry to address all the issues staring in the face of the industry.
Shri V.Y. Tamhane Editorial Advisor All rights reserved Worldwide; Reproduction of any of the content from this issue is prohibited without explicit written permission of the publisher. Every effort has been made to ensure and present factual and accurate information. The views expressed in the articles published in this magazine are that of the respective authors and not necessarily that of the publisher. Textile Value chain is not responsible for any unlikely errors that might occur or any steps taken based in the information provided herewith.
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CONTENT Cover Story : Dark Clouds in the textile industry 9 The inadequate earmarking of funds for TUFS by Mr. Avinash Mayekar 10 What Lies ahead in FY 2015-16 ? by Mr. V.Y. Tamhane
JUNE 2015 ISSUE EDITORIAL TEAM Editor & Publisher Ms. Jigna Shah Editorial Advisor Shri V.Y. Tamhane Consulting Editor Mr. Avinash Mayekar Graphic Designer Mrs. Bhavana Pore Advertising & Sales Md. Tanweer
INDUSTRY
Mr. Devchand Chheda City Editor - Vyapar ( Janmabhumi Group) Mr. Manohar Samuel President, Birla Cellulose, Grasim Industries Dr. M. K. Talukdar VP, Kusumgar Corporates Mr. Shailendra Pandey VP (Head – Sales and Marketing), Indian Rayon Mr. Ajay Sharma GM RSWM (LNJ Bhilwara Group)
EDUCATION / RESEARCH
Mr. B.V. Doctor HOD knitting, SASMIRA Dr. Ela Dedhia Associate Professor, Nirmala Niketan College Dr. Mangesh D. Teli Professor, Dean ICT Dr. S.K. Chattopadhyay Principal Scientist & Head MPD Dr. Rajan Nachane Retired Scientist, CIRCOT
CONSULTANT / ASSOCIATION
Mr. Shivram Krishnan Senior Textile Advisor Mr. G. Benerjee Management & Industrial Consultant Mr. Uttam Jain Director PDEXCIL; VP of Hindustan Chamber of Commerce Mr. Shiv Kanodia Sec General, Bharat Merchant Chamber Mr. N.D. Mhatre Dy. Director, ITAMMA
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NEWS 11 Association News: SIMA & TEXPROCIL 12 Corporate News: LENZING & OZBILIM 13 Textile Machinery 14 Textile Machinery: ITMA 2015 15 Letter to Central Government by Bharat Merchant Chamber 18 Birla wins Frost & Sullivan Award 23 News Nugget INTERVIEW 18 Mr. Uday Khadilkar, Asst. VP, Marketing, Grasim, Birla Cellulose 19 Mr. Divyendu Pudhir, President, India & Middle East, TYCO ARTICLES 25 Make in India- Future of Indian Manufactur ing by Mr. Harish Chatterjee, Raymonds 26 Overview of Nonwoven Bonding Technolo gies by Mr. Aniket & Mr. Ramchandran 29 Ideas that impact India by Mr. Anuj Bhag wati, ATE SHOW/ EVENT REPORT 32 TAI – Processing- A way forward 33 TEXPOSURE 2015 34 COTTON USA IN INDIA 35 Vision Sustainability 2020 36 GOTS Conference REPORT 38 Cotton Report 42 MMF Report ADVERTISER INDEX Back Page: Raymond Back Inside : Ruby Industries Front Inside : Textile Committee Page 1: Narain Sysnthetics Page 3: Bajaj Fab Page 5 : SGS Innovation Page 6 : ITMACH
Page 7 : VHM Industries Page 8 : Rabatex Page 17 : Shreeram Textiles Page 20 : Techtexil Page 21 : Tyco Page 24 : Sanjay Plastic
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COVER STORY The Inadequate Earmarking of Funds for TUFS – Dark Cloud for Textile Industry!
Shri Avinash Mayekar MD, Suvin Advisor Pvt. Ltd.
Introduction The Textile Sector plays a crucial role in Indian economy. The sector has major share in country’s economy in terms of GDP, export earnings, industrial output & most importantly in employment generation. Though the sector has presence in country since ancient times, it has witnessed problems of obsolete technology resulting in low production & poor quality. Higher machinery cost is major setback in modernization of technology. To address this issue, Ministry of Textiles has introducedTechnology Up-gradation Fund Scheme (TUFS) in year 1999. The scheme has been serving as “Sanjivani”(Life Giving) for Textile sector since then. It was introduced with an aim to boost an investment into textile sector and the industry could get full advantage out of it. The main objective was to upgrade the machineries into most modern state-of-the-art technology to face global competition. The scheme helped in fostering the investment across Textile Value Chain over the period of time. TUFS was initially introduced for 5 years of period with 5 % interest subsidy on machinery which was subsequently extended upto year 2007. The scheme was continued in modified form from year 2007 to 2010. The restructured TUFS was extended from 2011 to 2012 which was further rolled up to 2013. So the scheme has been modified over the period of time to ensure the balance across the Textile Value Chain. The last modification has notified in year 2013. Total fundreleased under TUFS isRs.18211crores till FY 2014-15. Total investment facilitated by TUFS is Rs.243721Crores. Though the TUFS subsidy has boosted the overall investment in textile sector, investors are facing many issues in availing subsidy. Today’s investor is very smart. He keeps on exploring new opportunities of investments. Though Textile business has presence in India& it is passed on from generations to generations, entrepreneurs are no longer loyal to the business. If one sees any new business opportunity with less investment & better returns, he will not hesitate to diversify into other business area. Already, many investors are thinking on options for diversification into other segments. But, if we see huge global & domestic demand of textile and apparels, there is great scope of investments in the sector. India being strategic location for Textile sector due to abundant availability of raw materials&skilled manpower, we still have huge scope for capacity expansion. TUFS is being catalyzing the investment in Textile sector, but most of the investors complaining that availing TUFS subsidy have been a cumbersome job. Delay in TUFS subsidy is one of the major reasons in maintaining time lines of the project. It also leads in huge loss of money and promoter needs to look for alternative resource at much higher cost. So, let us put light on some the major problems faced by investors.
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Problem faced by the Investors • Cumbersome Procedure Textile is very capital intensive sector. Machinery forms major part of capital cost. Considering this very fact, the Government has introduced the TUFS scheme. But, average time taken for disbursement of funds from ministry ranges from 24 - 36months whereas average time for implementation of textile project is 12- 18 months. Longer period in availing subsidy makes it difficult to complete project in stipulated time & in turn resulting into huge losses for investors. The procedure to be followed in getting subsidy is very simple. It starts with application by investor seeking assistance to the nodal banks / nodal agencies / coopted PLIswith project details and Detailed Project Report (DPR). Lending agency will submit the information online in the prescribed format to the Textile Commissioner (Mumbai), after determination of eligibility and admissible amount under Restructured TUFS for each case. On receipt of the information in the prescribed format, the TextilesCommissioner will issue a Unique ID (UID) number to pre-authorize theloan application for submission of subsidy claim by the lending agency. On receipt of subsidy from the Ministry of Textiles, the lending agencies will transfer the amount of subsidy into beneficiaries’ account within a period not exceeding three days.Though the procedure is simple, lack of co-ordination between the nodal agencies & monitoring makes it cumbersome for investors. • Blackout period The ‘blackout period’ for the Indian Textile industry corresponds to the duration between 29 June, 2010 and 27 April, 2011 when no funding support was available. The modified TUFS was suspended in June 2010 and the revised TUFS was introduced in April 2011. Lack of fund support creates insecure atmosphere amongst investors during “blackout period”. Most of investors put their projects on hold due to lack of support so it’s necessary to have continual fund support to the investors to catalyze investments during such low
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periods. • List of machinery List of sector-wise machineries covered under TUFS should be reevaluated. Some of segments like linen spinning are value addition in conventional spinning & it needs to be given special attention as it has great demand & potential. For such segments, special rates of subsidies to be given. It is necessary to identify & offer special subsidies to propel the investment to such sectors. Summary TUFS is a great initiative started by Ministry of Textile. But inadequate earmarking of funds & lack of co-ordination between nodal agencies is resulting into delay in availing subsidies. Ministry of Textiles (MoT) should forecast the total investments & required funds outlay for TUFS well in advance for each year.This can be only done when applications for UID should reach to the MoT at the planning
stage of the project but not at the implementation. Currently lending agencies are furnishing subsidy requirement on quarterly basis. This can be done on-line basis which will not only avoid accumulation of applications but will make procedure faster. Faster UID generation will help MoT to forecast fund requirement well in advance. This will definitely avoid the inadequate earmarking of funds. Once adequate fund support is available each year, automatically the delays can be shortened by continuous monitoring & coordination further. In fact consultants like us have smartly identified the need of the textile industry. With in-depth knowledge base and proven track record, we are assisting investors for availing TUFS subsidy. With the strategic approach and continuous monitoring & co-ordination, we are all set to assist industry players to avail TUFS subsidies timely.
What lies ahead in 2015-16 ?
Budget Blues
Shri V.Y. Tamhane
The central budget for 2015-2016 for the textile industry was a damp squib. The industry was eagerly awaiting reduction in the excise duty structure to promote the use of man madefibers in tune with the international norm of consumption of MMF to the extent of 70p.c. This is a long standing demand of the industry. This means that the country has been paying cost in the shape of imports of MMF woven fabric presently worth USD 325 miilion ( ch. 54 & 55). The heavy excise duty on man-made fibers depresses MMF fabric market and hence consumption of man madefibersis stuck at 40 %. India is missing the valuable opportunity of developing products in areas like leisure wear and sportswear which are the emerging segments of MMF. The speadier excise duty tangle is resolved, the faster will be the growth in exports of MMF fabrics and garments. If a GST is introduced as per present time frame there will be some saving game.
178.62 million kg in Oct 2014. Thereafter, as a sequel to the festival demand, stocks started moving down and touched 148.59 million kg in March 2015, the latest month for which such figures are available. These figures reflect the demand pattern for fabrics.
Another disappointment for the industry in the budget was a drastic reduction in the allocation of TUFS from Rs. 1864 crore in 2014-15 to Rs.1520 crore in 2015-16 ie a reduction of nearly 10 %. The operation of TUFS, the industry is apprehensive, will run into serious payment problem. Besides heavy arrears of TUFS payments for first 3 quarters in 2015-16 left out cases &black out cases are staring at the industry. This has severely eroded the cash-flow position of the industry. As a result, ShriPrakashBhagwati, chairman of TMMA ( Textile Machinery Manufacturers Association) is of view that the pace of investment in capital assets is severly affected and entrepreneurs have by and large, adopted the policy of wait and watch.
Cotton is always a gamble on monsoon. But the contradictory report on monsoon forecast is causing some nervousness in the industry. The industry could not take advantage of slump in cotton prices earlier in the cotton season 2014-2015. Now cotton prices have started going up. If monsoon fails, or if it does not follow the normal time schedule, the problems of the industry will multiply.
Depressed Demand What ails the textile industry at this stage is the low demand for fabrics. The statistical position of the industry is dominated by yarn. stocks of cotton yarn started climbing up with the industry from May 2014. From 131.60 Million kg in May 2014, stocks piled up to
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The slowing down of demand is the cumulative effect of sharp increase in consumer prices for daily needs, unsatisfactory level of economic growth, unsavoury situation in the labour market, etc. Apart from poor domestic demand, export market is also not quite helpful. In 2014-15 exports of textiles and textile products increases by 8.67% against 7.82% in 2013-14. The target for FY 2015 was 15 %. It seems the world demand is flat. At the same time, it can not be overlooked that india has so far not been able to take advantage of China, losing its growth potential. Cotton engulfed in uncertainty
Other Cost Factors The minimum basic wages have significantly increased in some states. The Power cost is abnormally high and there are no signals of any reduction in power tariff. There are no definite signs of any reduction in the cost of working capital. In this situation, faith of the industry in its own ability is the only saviour.
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ASSOCIATION NEWS
SIMA and TSC organizes PMKVY workshops in all major textile clusters
National Skill Development Corporation (NSDC) has announced Pradhan Mantri Kaushal Vikas Yojana Scheme (PMKVY) to facilitate the unemployed youth to get trained, certified and placed in various manufacturing sectors and gives financial assistance ranging from Rs.6000 to Rs.12000 depending upon the skill level and also Rs.2500 for the existing employees to undergo recognition of prior learning training and get certificates. Textile Sector Skill Council (TSC) promoted by Confederation of Indian Textile Industry (CITI) has undertaken the exercise of implementing the PMKVY scheme and is in the process of implementing the pilot phase project. The Southern India Mills’ Association (SIMA) in association with TSC jointly with 14 major Associations representing spinning, weaving, powerloom, knitting and processing sectors is organizing three workshops on 9th June 2015 at Coimbatore, 10th June 2015 at Madurai and 11th June 2015 at Salem. The purpose of the workshop is to create awareness about the scheme and also facilitate the individual textile manufacturing units to get affiliated with TSC as a training provider and avail the benefits. SIMA has stated that the workshop was attended by around 100 textile units. He has stated that large number of textile units would be participating in the Madurai and Salem workshops. He has added that Madurai workshop will be inaugurated by Mr.T.Kannan, Past Chairman, SIMA and Mr.J.Thulasidharan, Vice-Chairman, CITI would preside over the programme. Immediate Past Chairman of SIMA, Mr.S.Dinakaran would inaugurate the Salem programme. Mr.Rajkumar has stated that the Association would facilitate and extend necessary assistance to different Associations and the textile units on a “no profit no loss basis”
and the textile units need not pay any specific fee either as a percentage or based on the workers for availing the service. He has stated that it is enough if the textile units pay only Rs.5000/- towards the training provider affiliation fee and Rs.1000/- per trainee as the assessment and certification fee to the TSC. He has added that SIMA has been approved by TSC to conduct the Training of Trainers programme which would be offered at a nominal cost. He has further said that the SIMA has also been approved by TSC for validating the documents of individual textile units and recommending to TSC for affiliation as training providers which also would be provided at a very nominal cost. He has stressed that the Association would provide further services to the individual textile units only on actual cost basis and the textile units need not pay any fee other than this.
der the TUF Scheme, and recalibrating the product/country matrix under the newly introduced Merchandise Exports from India Scheme ( MEIS) scheme which have a direct bearing in improving India’s competitiveness in the short to medium term.
Decline in Cotton textile exports – a matter of concern- TEXPROCIL
The withdrawal of Focus Market Scheme for Cotton yarns has caused steep decline in exports to non-conventional markets like Peru , Morocco etc. The delay in getting Duty Drawback amounts from JNPT Customs has further aggravated the situation for the exporters .
The overall exports of textiles & clothing touched US$ 41.4 Bn in 2014-15 as against an export target of US$ 45 bn. Exports of Cotton textiles (excluding raw cotton ) during 2014-15 was US$ 9452.96 Million as against exports of US$ 9669.05 in 2013-14 , registering a negative growth of 2.23%. Exports of cotton textiles ( including raw cotton) touched US$ 11353.15 as against exports of US$ 13306 in 2013-14 registering a steep decline by 14.68% . Exports in the current fiscal year can do much better , if adequate & timely support is given by the Government and the export target of US$ 13.67 bn fixed for 2015-16 envisaging a growth of almost over 15% can be achieved as India has got the required competitiveness in textiles , according to Shri Dalmia. However Shri Dalmia called for urgent action on some areas like the inclusion of cotton textiles under the 3% Interest Rate Subvention Scheme , release of funds un-
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Apart from these measures, much needs to be done towards achieving the objective of “ease of doing business” and “Simplification of procedures”, according to Shri Dalmia. He pointed out instances that inspite of repeated representations exporters are yet to receive 2% additional duty credit scrips under the MLFPS ( Market Linked Focus Product Scheme) which was announced in February 2014. The Government has also curtailed the benefits under the Incremental Export Incentivization Scheme ( 2013-14 ) to a maximum Rs.20 lakhs which was not there in the original scheme.
Despite the recognition of the textile sector’s role in the ‘Make in India’ concept as well as in jobs creation, there is a lack of adequate focus and proper planning in boosting exports , pointed out the Chairman ,TEXPROCIL . However, Shri Dalmia hailed the recent visit of the Hon’ble Prime Minister to China as historic and hoped that pursuant to the joint statement issued by the leaders of the two countries , the process of reduction of duties under APTA ( Asia Pacific Trade Agreement) on exports of fabrics and other value added products to China will be expedited as there is immense potential to export these items to China. Shri Dalmia also urged the Government to conclude the FTAs with EU, Australia and Canada to remove trade barriers and gain market access to these leading countries. q
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CORPORATE NEWS
Lenzing FR® - the fiber of protection in all layers
The Lenzing FR® fiber, which is based on cellulose, is on show at Interschutz, the largest international venue for experts in fire protection and the emergency services, as a complete solution for applications in firefighter protective clothing. Each layer of Lenzing FR® offers protection and comfort. The protective fiber, created on a cellulose basis, protects firefighters from heat stress as a result of heat accumulation, one of the most frequent reasons for failures in emergency service deployment. With the conception of different layers of fabric, Lenzing FR® can offer a tailor-made concept based on the respective application.. Lenzing FR® can develop its advantages to perfection in fiber blends with synthetics in particular. , Due to its naturalness, the Lenzing FR® fiber guarantees the very best moisture absorption and breathing properties through all of the layers in which it is used. In particular, gear for the head and hands, which perspire profusely, requires better sweat transportation which is guaranteed with Lenzing FR®. More performance can save lives Tests confirm the effectiveness of Lenzing FR®. Compared to commonly used protective clothing, protective clothing with Lenzing FR® shows that second and third degree burns can be reduced by up to 30%. In particular the cracking of fabrics is reduced or even prevented. In physiological tests, Lenzing FR® was able to demonstrate that the fiber works most effectively
in layers. The best values are obtained when the test person is wearing materials which are both flame-retardant and absorptive. The breathing properties of Lenzing FR® lead to a lower body temperature and the fire fighter has a higher performance profile as a result. The “added” performance amounts to 16 Watts. In practice this means running for one minute longer. This one minute can save lives. In use around the world Lenzing FR® is available in a variety of colors for different emergency forces and is thus used extensively in international protective clothing. The fiber is particularly appreciated in countries with a very hot climate. Optimum moisture regulation is a matter of survival there. Lenzing FR® - the fiber with integrated flame protection The flame-retardant fiber, Lenzing FR®, is known all over the world as a skin-friendly protective fiber. It is used in numerous working areas as the optimum protection against sources of heat. Unique heat insulation properties combined with permanent flame retardancy make Lenzing FR® the “Heat Protection Fiber“. Due to the naturalness of Lenzing FR®, which is made of wood, it provides good moisture management which reduces the risk of deadly heat stroke. Lenzing FR®, a complete solution for firefighter clothing.
ThreadSol partners with Ozbilim in Texprocess 2015
After the South-East Asian Markets, Europe the next target geography for ThreadSol, India
ThreadSol solutions – IntelloCut and IntelloBuy save up to 10% material cost for the garment manufacturers, reducing their material wastage up to 60%. ThreadSol presently helps more than 30 large and medium scale garment manufacturers in South East Asia region. Major adopters of their path breaking solutions are the likes of Raymond Silverspark, Madura Garments, Blackberrys in India; MAS Holdings, Hirdaramani in Sri Lanka and Dekko and Unifill in Bangladesh among many others. “Further to the major success in the Indian Peninsular region, we think it’s now time to save some fabric for the European manufacturers. Turkey being one of the top 6 ready-made garment exporters in the world and Özbilim being a renowned and respected name in Turkey and around, we probably would not have found a better partner for this geography” said Kundan Sengupta, Sales and Marketing Manager Europe, ThreadSol. Brand Ozbilim has more than 35 years of experience in serving ready-made garment manufacturers across the European Union and the United States with their highly advanced technology in Cutting, Spreading, Fabric Testing et al. “Software solutions have always intrigued me. IntelloCut grabbed my attention with a single demo. The recent success stories speak volumes of the capabilities of ThreadSol solutions, the industry clearly needs this new technology.” said Ziya Kilic, General Manager, Ozbilim. “With ThreadSol solutions with us, we can now provide a 360 degree cutting room solution to the garment manufacturers here” he added.
ThreadSol Softwares, India strengthens its partnership with Özbilim Tekstil Makinaları, Turkey in Texprocess. First time exhibitors in Texprocess this year, ThreadSol, the 3 years young solution provider, chose to jointly showcase their technology with Ozbilim to the European market.
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June 2015
TEXTILE MACHINERY NEWS Overall Shipments of New Textile Machinery Slightly Down in 2014
Decline in Short-staple and Draw-Texturing Spindles; Increase in Flat Knitting Machines These are the main results of the 37th annual International Textile Machinery Shipment Statistics (ITMSS) just released by the International Textile Manufacturers Federation (ITMF). Spinning Machinery Shipments of new short-staple spindles fell by 15% in 2014 year-on-year and more than reversed the increase of 10% in 2013. The level of short staple spindles declined to 9.8 million spindles, the lowest level since 2009 and also lower than the ten-year-average of 10.9 million. Most of the new short staple sindles (91%) were shipped to Asia, whereby shipments fell by nearly 17% year-on-year. Thereby China, the world’s largest investor of short-staple spindles, experienced a decline of nearly 29%. Four of the five largest investors for short-staple spindles originate from Asia. Including China these are India, Viet Nam and Indonesia. Shipments to Turkey, the fourth largest investor, increased by 5% in 2014, the third consequetive increase. Global shipments of long-staple (wool) spindles increased by 70% from 80,800 in 2013 to 137, 650 in 2014. That is the strongest increase since 2012. The majority of long-staple spindles (69%) were shipped to Europe. Thereby, shipments to Turkey rose to 67,000 which is equivalent to a share of 49% of global shipments. Within Europe Belarus and Italy came second and third with shipments numbering 21,216 and 10,584 spindles. In 2014, shipments to Asia increased marginally by 0.2% to 29,000 spindles. While North and South America did not receive any shipments of long-staple spindles, shipments to Africa amounted to 432. Shipments of open-end rotors improved moderately in 2014 by 2.6% after they declined in the previous two years. The number of shipments reached 454,720,
the highest level since 2011 and well above the long-term average of 402,669. Nearly 67% of worldwide shipments of open-end rotors were destined for Asia though the pace is declining. Shipments to Asia fell by 13% after declines of 13.9% and 11.9% in 2013 and 2012 respectively. Also, in South America shipments declined (-9.3%). In contrast, shipments to Europe and, especially, North America saw strong increases of nearly 27% and 402% respectively. Texturing Machinery Global shipments of single heater drawtexturing spindles (mainly used for polyamide filaments) increased by 76% from 2,600 in 2013 to 4,576 in 2014. With nearly 57% Asia is the region where most of the single heater draw-texturing spindles were shipped to followed by Western Europe with 20% and South Amercia with close to 15%. In the segment of double heater drawtexturing spindles (mainly used for polyester filaments) the downward trend continued and global shipments fell by 12% on an annual basis to 443,352. However, the pace of decline moderated somewhat compared to 2013 when shipments fell by nearly 30%. Asia’s share of worldwide shipments amounted to close to 88%. Thereby, China remained the largest investor accounting for 60% of global shipments. Weaving Machinery In 2014, worldwide shipments of shuttle-less looms fell by 14% to 71,667 units, the third decline in a row. Thereby, shipments of water-jet shuttle-less looms dropped by 30% to 24,220, the third fall since 2012. Shipments of air-jet looms also declined though this was the first fall after four years of increases. The number of shipped air jet looms contracted by 19% to 20,176 in 2014. In contrast, deliveries of rapier/projectile looms shipments rose by 14% from 23,828 in 2013 to 27,271 in 2014, the highest level since 2006. As in previous years the main destination of shuttle-less looms was Asia amount-
June 2015 www.textilevaluechain.com
ing to a share of 97% of worldwide deliveries. Thereby, the percentage of the three subcategories is relatively even. Water-jet looms measure 36% of shipments to Asia, 35% are rapier/projectile looms and 29% are air-jet looms. In Europe and North America 73% and 54% of shipments are for rapier/projectile looms, while the share of water-jet looms is only 7% and 11% respectively. Circular & Flat Knitting Machinery Global shipments of large circular knitting machines fell by 22% from 36,575 in 2013 to 28,502 in 2014, the lowest level since 2009. Also for this category Asia is the world’s leading investor. Nearly 88% of all circular knitting machines are shipped to Asia and with a share of 60% (close to 17,000 shipments) of worldwide deliveries China is the single largest investor. India and Turkey rank second and third with 2,464 (8.6%) and 1,325 units (4.6%) respectively. 2014 was a good year for the segment of electronic flat knitting machines as global shipments grew by 31% to 46,100 machines. This was the first increase since 2011. Not surprisingly, Asia received the highest share of shipments. Over 85% of all deliveries went to Asia with China being the largest investor with a share of 42% equivalent to over 19,000 units. Including China, four of the five largest investors for flat knitting machines are Asian countries. Second and third are Bangladesh (11,312 units) and Viet Nam (1,956). Turkey ranks fourth with 1,879 machines and India fifth with 1,840 units. Finishing Machinery The 2014 edition of ITMF’s International Textile Machinery Shipments Statistics included for the nineth time also data on finishing machinery (wovens and knits continuous machinery). q
“Nobody talks of entrepreneurship as survival, but that’s exactly what it is and what nurtures creative thinking.” - Anita Roddick
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TEXTILE MACHINERY NEWS
Textile Colourant and Chemical Leaders Forum and Nonwovens Forum at ITMA 2015 draw strong industry support ITMA 2015 has attracted various industry groups to initiate activities that address critical sectorial concerns, as well as challenges faced by the textile, garment and fashion industry. The exhibition, billed as the world’s largest textile and garment manufacturing technology showcase, will be complemented by a wide range of knowledge sharing events that will feature discussions on issues that impact the industry’s sustainability. Textile Colourant and Chemical Leaders Forum
suppliers’ response to current environmental issues, updates on REACH regulation, new dyeing and printing technologies and their impact in a more sustainable supply chain. “We have received many paper submissions as there is strong interest in sustainability issues impacting the textile and garment industry. We hope the forum will be a focal point for meaningful dialogues which will contribute to improvements in this sector.” Besides Mr. Gigli, other members of the committee are: • Andrew Filarowski, Society of Dyers and Colourists • Enrique Meltzer, Latin American Federation of Textile Chemists • Jan Marek, The International Federation of Associations of Textile Chemists and Colourists
Launched at ITMA 2011, the forum was a success, drawing lively participation from colour and chemical professionals, and fashion and sports brand owners from around the world. This year, the agenda will focus on sustainability in dyeing and finishing processes and participants will be updated on industry opportunities and best practices.
• Janak Mehta, The Dyestuff Manufacturers Association of India
Covering a comprehensive range of issues, such as current challenges, solutions and future trends, the one-day forum on 14 November is divided into three sessions:
• John Mowbray, owner and founder of UK-based B2B publisher, MCL Global
• The issue: topics related to chemical pollution and environmental issues and how these impact the market place • The solution: how does the supply chain respond • The future: what are the trends and/ or game changers moving forward Alessandro Gigli, board member of the Association of Italian Textile Chemists and Colourists who chairs the forum programme committee, said: “Topics to be covered include the chemical/colourant
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To-date, the confirmed speakers include • Alberto Gallina from Benetton Group srl. who is representing the ZDHC Group • Prof. Giuseppe Rosace from Department of Engineering and Applied Science, University of Bergamo
• Prof. Marc VanParys, President at UNITEX Nonwovens Forum To be held on 16 November, the Nonwovens Forum @ ITMA is jointly organised by EDANA and MP Expositions. The forum will address pertinent issues, challenges and opportunities in the rapidly evolving world of nonwovens. Pierre Conrath, Sustainability & Public Affairs Director, EDANA (Belgium) who will kick-off the forum with an introduction on the nonwovens industry, said:
“The programme is built around the theme - ‘Nonwovens: A World of Growth and Opportunities’. Presentations on the latest applications and finishings will benefit ITMA visitors who are involved in or have the intention to move into nonwovens manufacturing. Participants will find it very useful to be able to visit the ITMA exhibition and view many of the technologies on show at the exhibition.” The first session will focus on applications and technologies for nonwovens: • Overview of Nonwoven Production Technologies and Applications by Laurent Jallat, Head of Marketing Department, ANDRITZ Nonwoven (France) • From Melt to Nonwoven: Spunbond Lines for Technical Applications by Martin Rademacher, Sales Manager & Ingo Mahlmann, Senior Manager Product Management Nonwoven, Oerlikon Neumag (Germany) • Nonwoven Production Lines Installed by a General Contractor by Johann Philipp Dilo, General Manager, Dilo Group (Germany) The second session explores added value ingredients and finishing for nonwovens: • Spin Finishes and Additives in the Production of Nonwovens by Stephan Reil, Marketing Manager Nonwoven, Pulcra Chemicals (Germany) • Added Value Through Selected Functionalisation of Nonwovens by Michael Bildhauer, Head Technical Service Fibre Auxiliaries & Robert Zyschka, Head Technical Service Coating/Finishing, CHT R. BEITLICH (Germany) • Advantages of Ultrasonic in Web Splicing Applications by Pierre Croutelle, Sales Manager - Nonwoven/Textile & Plastic Division, Spoolex (France) • Striking Colors and Performance for PP SpunMelt Nonwovens by Francis Baud, Global Fibre Marketing Head, Clariant (Switzerland) q
www.textilevaluechain.com
June 2015
LETTERS TO THE CENTRAL GOVERNMENT FROM BHARAT MERCHANT CHAMBER - Mr. Shiv Kanodia, Honorary General Secretary
Letter : 1 FLAWS IN EU POLICY OF GRANTING DUTY-FREE BENEFIT TO PAKISTAN UNDER THE GSP PLUS SCHEME, AS THE INDIAN COMMERCE MINISTRY WITHDRAWS ITS OBJECTION AFTER VISIT OF HINA KHAR. From 1st Jan’2014 EU has approved GSP Plus status for Pakistan benefiting Pakistan’s textile business who will now have access to 27 European Countries without having to pay duties. This became possible only after India withdrew its objection to the unilateral EU decision which was subsequently given NOC by the WTO. This benefit is till 2017 and will see manifold increase in employment to Pakistani laborers at the cost of Indian wage earners engaged across entire textile value chain, viz cotton farming, ginning, spinning, manmade yarn spinning, weaving, processing and garmenting industry. Bangladesh is already enjoying similar benefit from the EU. In an unjustified move by the Indian Commerce Ministry, which has ignored the livelihood of more than 9.5 crore people, has sent shock wave amongst the entire textile value chain. After agriculture, textile is the second major employment generator to the masses in India, across various states and in various sectors related to textiles. The industrial growth of India was on the backbone of Textiles and for centuries, is the only livelihood for crores of uneducated families employed in farming of cotton, weaving, hand processing, embroidery, garmenting, and laborers etc. As feared, the repercussion to the above policy has started showing in last 3 months and by 2017 Indian job to around 9.5 crore people will be effected irreparably. What is surprising that India being a sufferer of terrorism form across the border, have allowed such a move at the cost of the Indian masses, is not only deplorable but anti people act of omission. If at all, the EU saw the need to help Pakistani textile industry, it should have done so without affecting the livelihood of Indian masses. This again is nothing but ‘robbing Peter to feed Paul’. The socio – economic repercussion in India will be widespread and irreversible. As leading national level trade, commerce & industrial association, representing textile & textile related sectors, Bharat Merchants’ Chamber has taken strong stand in the interest of its members & masses engaged in cotton farming, textile workers, daily wage earners, ancient HAST KALA industry of India. We have urged the Central Govt. to urgently review their decision of withdrawing the objection. Indian Commerce and Textile ministry need to take corrective steps before it is too late. Letter : 2 FLAWS IN POLICY OF DUTY-FREE IMPORTS OF GARMENTS FROM BANGLAGESH
June 2015 www.textilevaluechain.com
On 7th Sept’2011, Indian Prime Minister announced on his Bangladesh visit, ‘duty-free import of 48 textile items from Bangladesh to India’. The primary justification given was to address the problem of trade imbalance between the two countries. It was claimed that India was selling goods worth about $ 3 billion to Bangladesh against the latter’s export of about $ 400 million to India. The above policy was announced in spite of widespread protest and resistance from across the country, including textile industry, trade unions & the masses employed in garment sector of India. After agriculture, textile is the second major employment generator to the masses in India, across various states and in various sectors related to textiles. The industrial growth of India was on the backbone of Textiles and for centuries, is the only livelihood for crores of uneducated families employed in farming of cotton, weaving, hand processing, embroidery, garmenting, laborers etc. Textile has been India’s core competence area and needs to be strengthened further, in view of stiff competence from unfair policies from countries like China. If we fretter away our advantages, our textile industry will die a pre-mature death. As feared, over a period of 30 months, several cracks in the ‘duty-free import of garments’ policy have surfaced. 1) Several garment units have shifted from India to Bangladesh, leaving lakhs of workers, tailors and other uneducated employees jobless in India. 2) Garmenting units in India are unable to compete with dumping of Bangladeshi imports, and are slowly shutting down, rendering lakhs of workers, tailors and other uneducated employees jobless in India. 3) An Indian wage earner of Rs.7500/- per month is made to compete with the Bangladeshi worker being paid a meager amount of Rs.2500/- per month. Aren’t we driving him towards poverty? 4) Ready fabric is being dumped from China into Bangladesh and after converting into garments, dumped in India. The problem of trade imbalance between the two countries may not have eased significant, but the trade imbalance between China and Bangladesh will definitely widen. China will be at advantageous position and can exploit the situation. India, as big brother to Bangladesh should take lenient & supportive stand, but not at the cost of crores of Indian workers. The present policy is nothing but ‘robbing Peter to feed Paul’. The Indian Government needs to take views of concerned stakeholders before announcing such policies. As neighbours, India should take viable and sustainable steps to help Bangladesh, but not the cost of its own people. As leading national level trade, commerce & industrial association, representing textile & textile related sectors, Bharat Merchants’ Chamber has taken strong stand in the interest of its members & masses engaged in cotton farming, textile workers,
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daily wage earners, ancient HAST KALA industry of India. We have urged the Central Govt. to urgently evaluate the anomalies and take following steps:1) To assist Bangladesh, should formulate policy which does not harm Indian masses and benefit Bangladesh, rather than any third country. 2) Immediately withdraw the policy of ‘duty-free import of garments’. 3) Rehabilitate / compensate workers rendered jobless, unpaid wages, delayed payments due to above policy. 4) Encourage companies who have shifted to Bangladesh to return back and reinstate workers rendered jobless by them. 5) Restructure debt / give one time financial assistance to companies remaining in India, adversely affected by the above policy. 6) Give financial grant to labors of struggling garment majors suffering due to above policy.
Considering her aptitude towards continuous endeavor in improving even from the best, we are happy to put below some areas which needs her attention. We are confident that she will solve these and reverse the downward trend of our Export growth :1) E-BRC Exports – Data entry staff of bankers makes mistake in filing data to DGFT leading to unnecessary litigation Solution – Exporters be allowed to feed data and bankers to flag off after verification. 2) E-BRC EPCG – Most machine manufacturers outside Mumbai do not have EBRC facility available with their bankers. EPCG license closure /excise refund etc. are stuck up. Solution - As above.
LETTER: 3
3) Flaws in EU policy of granting Duty-free (GSP Plus Scheme) to Pakistan as Indian commerce Ministry withdraws its objection after visit of Pak FM Ms. Hina Khar. (Detailed write up attached)
ONLINE FOREX SALE TO REDUCE TRANSACTION COST FOR EXPORTERS / TRANSPARENCY IN FOREX DEALINGS
4) Flaws in Policy of Duty-free imports of garments from Bangladesh (Detailed write up attached)
Two decades ago, the Indian stock market matured from ring trading to online computerized trading, thereby eliminating ‘Gala’ (margin) by the ring brokers. Computer screen based trading helped investors; FI’s, FII’s, brokers, institutions etc. and the volume in our stock market grew, phenomenally.
5) Transaction cost reduction – Forex margin (spread) charged by Treasury bench is non-transparent , exorbitant and arbitrary. This needs to be on line (Detailed write up attached)
The present system of Treasury Branch of the Banks is akin to the old ring system of stock market. The Exporter loose on an average 0.20% to 1% of his inward remittance thereby losing his international competitive edge to that extent. The margin charged to importers is similar and the spread for the treasury bench is exorbitant. Secondly, it is manual, non- transparent & arbitrary, open to several anomalies. We urge that a online forex , physical delivery system should be formulated which should generate contract note having:1. Transaction ID 2. Time of Trade 3. Name of forex Seller & Buyer 4. Name of forex dealer for both buyer & seller The contract note for foreign exchange should be issued with transparency, like reported by NSE, BSE and other exchanges. When we compare with other countries, Indian foreign trade is at big disadvantage. LETTER : 4 TO DGFT The Textile Trade is the most disorganized sector in India, after agriculture. Textile industry has been the backbone of Indian Industrial revolution. All big corporate of India has grown from Textiles and diversified to other fields, still leaving textile disorganized. The importance of Textile cannot be over emphasized as this is the highest employment generator in India, from farm (cotton) – ginning – spinning – processing – garmenting- value additions etc. The foreign exchange earned from Textiles gives 4 times more economic boost than other sector as 100% ingredients are indigenous and employs 4 time more, as it is the most labour intensive industry. The new incumbent of Addl DGFT at Nistha Bhavan has brought in far reaching and welcome changes, with modern vision of 21 st century. The DGFT under her is now transparent, efficient and approachable with ISO 9001:2008 certification, which is an unprecedented achievement.
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6) Target Plus Scheme – Shut down, pending incentives, un-cleared and ambiguous situation. Solution – Clear old files. Define further status. Any incentive withdrawal should not be abrupt, but should be applicable from next period/term. 7) Incremental Export Incentive – Abrupt discontinuing with no clear policy decision. Solution – Clarify governments’ position of past and future incentive disbursements and give time bound program. 8) Defaulters List – Some exporters have been classified in defaulters list due to technical , ambiguous & vague laws (see attached new report of PM Sri Narendra Modi). They were caught in catch 22 situation and are trying to come out of this situation. Your ability to take up contentious issues & address concerns of all interested parties and create win-win situation for all, encourages us to request that Govt. should study case wise issue and device mechanism for them to come back to mainstream exporter of India. Please bear in mind that most our members are predominant exporters and contribute to the foreign exchange earners for the country. 9) Awareness Drive – Several Govt. schemes launched have lost importance due to lack of awareness. The present seminar is a welcome change and request this to be continued with a set SOP. Regular circulars should be sent to associations which in turn circulate amongst our members. 10) Representation in Consultative committee – We are representing in various govt. organization like Railways, Income Tax, and others , we request you to start such consultative committee and have one representative from our association too.
q
www.textilevaluechain.com
June 2015
INTERVIEW
LIVA ACCREDITED PARTNER FORUM The need of the hour Mr. Uday Khadilkar Asst. Vice President, Marketing, Grasim
The Story so far
LAPF: Need of the hour
With over 50 years of experience in manufacturing world-class cellulosic fibres, it has been our conscious endeavour to keep ahead of the business and constantly re-invent ourselves. At Aditya Birla, we take tremendous pride in research and innovations at our in-house world-class facilities. Viscose staple fibres (VSF) business accounts for about 80% of Grasim Industries Ltd. stand alone revenue. Over the last three years the Group’s investments have been in excess of Rs. 4,300 crores and capacities have scaled to a little over 900,000 tonnes p.a making it one of the largest manufacturer in the world with about 20% market share. We have wood pulp plantations in Canada, Sweden and India and installed capacity of more than 700,000 spindles across Indonesia, Thailand, Philipines and India. Our entire range of Cellulosic fibres of Aditya Birla Group are under the brand of Birla Cellulose.
When a product is launched the value chain needs to be in place. Once this happens, more volumes can be expected through the value chain. The need of the hour in our highly fragmented textile industry was to bring together different players of the value chain under one platform for successful delivery of LIVA promise. Till now, VSF products available in the Indian market were of inconsistent quality because the value chain was not developed adequately in terms of technology and processes. To bridge this gap and make the process more streamlined and effective, LIVA Accreditation Partner Forum (LAPF) was launched.
Launch of LIVA In India, even though consumers actually use garments made from viscose and like the feel and comfort they are not aware that they are made from viscose or its blend. The awareness of VSF is low as compared to cotton, polyester, wool & silk. Traditionally we are a B2B brand, but with the stupendous launch of LIVA in March, we are moving forward with the important connection of business directly with the consumer and the retail segment. With this new initiative, we are the only company in the world to operate fully integrated manufacturing facilities extending from fibre to fashion, all under the umbrella brand called ‘LIVA’. LIVA is a new age biodegradable cellulosic fabric made of Birla’ s viscose staple fibres and goes through an accredited value chain to meet the standards of LIVA. We have been running pilot projects and working with partners across the value chain for more than 2 years. The result was a perfect fabric in quality that promises fluidity, elegance, superior drape and comfort, in other words, an ultimate fabric for a woman’s wardrobe that gives a beautiful flow to the garments and enhances ease of movement. LIVA accentuates the wearer’s curves because of its fluidity and softness unlike cotton which is boxy. Our objective is to make LIVA known as a unique fabric, both in India and in international markets. Globally speaking, Italy, Turkey, Sweden are considered for specialty niche viscose fabrics whereas China is considered as a mass producer of viscose fabrics. India is predominantly known for cotton and that’s where we want to bring a change for the modern fashion conscious Indian consumer. We have collaborated with major fashion brands in India like Pantaloons, Van Heusen, Allen Solly, Lifestyle, Global Desi, Chemistry and F109 for making available LIVA garments.
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LAPF is a forum of value chain partners (spinners, fabricators & processors) who have the capability to offer good quality and innovative products made of Birla Cellulose fibre/fibre blends. Through the forum, Birla Cellulose works with spinners, fabricators and process houses creating sustainable and high quality new age yarns and fabrics. Fabrics made by these partners in the value chain are promoted and marketed to retailers, brands and consumers as ‘LIVA’. This program is advantageous for the partners where they can own the LIVA fabric and promote the same amongst their customers. LIVA is based on four strategic pillars namely: • Brand & Communication Development – where we understand and deliver consumer needs & experience • Design & Innovation – Innovation in fibres, yarns & fabrics and engagement with designer fraternity • Marketing to brands and retail – to ensure visibility, premiumness & consumer experience • LIVA Accredited Partner Forum - to deliver the LIVA promise It’s a win-win situation for everyone who will be a part of this forum. Eligibility for LAPF Partnership Basically any entrepreneur can qualify to be part of this accredited forum if they are capable of delivering quality products as per LIVA standards. For basic eligibility they should have adequate machinery set-up with good technology level, efficient and updated systems and processes, precise quality control instruments, qualified staff/ workmen, effective monitoring/ inspection systems and a thorough professional approach. Interested value chain partners have to fulfill all the criteria as per the MOU and are assessed by our expert panel before being certified as LAPF members. During assessment if the team finds them lacking in any area, our experts provide 360 degrees support to help them to improve and overcome the issues, be it operation skills, raw materials, machinery, etc as per the laid down standards.
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June 2015
We also provide support with marketing, vendor management, design innovation, product perfection and sustainability. Many leading textile mills those have integrated setups are already part of LAPF. These mills have good control over their processes from fibre to finished fabric and provide guarantee for quality of the products with timely delivery. With time, the brand plans to add more value chain partners. Currently, we have over 280 LAPF partners: 35 spinners, 150 weavers and 110 processors. And the journey is on to add more value chain player to the LAPF fold in the near future. LAPF Co-branding With LAPF, our partners enjoy an incremental business percolated down the LIVA value chain. To improve visibility and as a mark of assured quality & traceability, members can use LIVA & LAPF logos on packaging and promotional material. LAPF members can use these logos only for Birla Cellulose products and only for first quality products passing LIVA standards. The ‘LIVA accredited’ logo can be used on fabric rolls, fabric bags, yarn cones and yarn cartons. The LIVA accredited partner logo can be used in website, stationery, visiting cards and other promotional material. LIVA products command a premium as they are of superior and consistent quality leading to satisfaction of value chain partners and consumer alike. LAPF Evaluation & Improvement Program Technology is changing so fast that we cannot afford to slack.
For any program to be successful, continuous evaluation and improvement is a necessity. To this cause, we have commissioned Bombay Textile Research Association (BTRA) for evaluation & improvement of LAPF partners. This evaluation service is a value added service exclusively for LAPF partners and the entire cost is borne by us. BTRA is a well-known R & D centre that was founded in 1954 which provides a gamut of services like technical, testing and audit services. Alongwith Birla Cellulose team, BTRA team visits LAPF partners’ facilities doing thorough shop-floor investigations. They identify and provide constructive solutions to technical and techno-economic problems regarding quality, machine production, machine maintenance, quality systems, recording systems etc. These detailed reports reflect where exactly the members stand, their strengths and weaknesses which helps them improve their systems. In the long run, this practice will yield consistent quality products with satisfied value chain partners and consumers. Many international brands are shifting their focus towards India for sourcing Viscose based products due to increase in ease of manufacturing and consistent quality. This is the right time for a forum like LAPF to streamline our fragmented industry and make good of the opportunity. Many international buyers have shown keen interest in LAPF, as they want to avail the benefits for sourcing quality products. Their interest shows trust and faith in LAPF which tells us that we are heading in the right direction. q
BIRLA CELLULOSE wins the FROST & SULLIVAN AWARD Sustainability - we often hear about this, but what does it really mean? It means changing the way we think about how we use our resources and make small changes that have a big impact on nature and community. To this cause and with a mission ‘to assist the adoption of Green Manufacturing Practices across Indian Manufacturing Companies’, Frost & Sullivan held its 2015 Edition of ‘India Sustainability Summit’ on 22nd May, 2015 at Hyatt Regency, Mumbai. Based on the assessments conducted at Birla Cellulose’s Kharach site and subsequently whetted by the Executive Committee of “Frost & Sullivan’s Green Manufacturing Excellence Awards 2015, WBirla Cellulose was awarded “Challengers Award - Large Business”. Mr. H.K. Agarwal (COO for Pulp & Fibre business and Mr. Vinay Bhalerao (Unit Head of Kharach unit) were there on the stage to be felicitated with this prestigious award for Birla Cellulosic. Mr. Gowtham S of Frost & Sullivan welcomed the guests and explained the Assessment Model and Methodology of GMEA 2015. He explained that the assessment model is realigned within four major areas and 13 parameters with each having a weightage of 100 points, totaling to 1300 points. The model also took into consideration global sustainability reporting frameworks such as the UN Global Compact. The assessment for Birla Cellulose that concluded had its basis in their GMEA Assessment Model that in turn derived its inputs from the team’s interaction with unit’s personnel, observations in the plant and documents seen/provided to them. The Kharach unit had a score of 823 for the entire facility. The parameters on which the assessment was done covered business strategy, Governance & Ethics, Waste & Emission, Biodiversity, Energy
June 2015 www.textilevaluechain.com
& water, Materials, Human Capital Sustainability supply chain, society and customers. GMEA 2015 summit Mr. Batra presented on ‘Product Life Cycle Management’. He spoke about the company’s efforts regarding sustainability. He said, “By 2017, pulp and fibre business of Aditya Birla Group endeavours to become the industry leader for sustainable business practices across its global operations balancing economic growth with environmental and societal interests”. He further said that sustainable efforts at Birla Cellulose are tested through Life Cycle Assessment (LCA). LCA assesses the environmental aspect impact associated with product, process or service. At Birla Cellulose, it is conducted from cradle to factory. He proudly said “Birla Spunshades is the most sustainable product in the market that uses a unique dyeing technique. In this dyeing technique, for 100 kg fabric, water savings are upto 70 lts/kg, effluent load is reduced by 70%, power is saved upto 3.5-4.0 KW and time is saved by 6-8 hrs per batch, ultimately reducing processing costs with better production quality and profits”. Mr Ajay Sardana presented on ‘Employee Sustainability Initiatives’. He said, “Employees are a key driver in driving Aditya Birla’s sustainability initiatives. Our company is an exciting world of global opportunities for professional growth with human care. The way we do business is just as important as the business itself”. He concluded by saying, “For a sustainability program to be credible and successful, the alignment, engagement and enthusiasm of employees – both managers and the workforce – are essential”. q
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International Trade Fair for Technical Textiles and Nonwovens
Your Centre of Innovation 24 – 26 September 2015 Hall 6, B.E.C, Goregaon (E)
Discover a premier trade platform featuring innovative trends in the technical textile & nonwoven industry For space booking please contact: Bijoy Varghese +91 22 6144 5960 | bijoy.varghese@india.messefrankfurt.com www. techtextil-india.co.in
ADVT.
INTERVIEW Technology to help protect Lives & Assets - Tyco, Integrated Fire & Security Solutions Provider for the Textile Industry. Mr. Divyendu Pundhir, President – India & Middle East
TVC : TYCO is providing solution for Fire and Security across the world. What are the core beliefs and the vision of the company? DP : Tyco is a global organisation which provides Fire, Security and Life Safety solutions across industries, verticals and countries. Tyco is committed to Helping Protect People, Property and Businesses. Tyco is dedicated to advancing fire safety and security by finding innovative ways to save lives, improve businesses and protect people where they live and work.
TVC : How is the journey of TYCO till now in India in other industries apart from Textiles?
TVC : In India, this industry is more dominated by SME’s, do they prefer fire and security products as they operate in low margins and high competition. Is it worth the expense incurred in expensive Fire & Security Solutions? DP : Irrespective of the size of the organisation a very common concern facing the employers are the safety of their employees and their assets. Concerns like fire, burglary, retail shrinkage, information inaccuracy directly impact the health of any growing business. Tyco has the experience and expertise of offering customised solutions for SME or a large multi chain retailer of any segment.
TVC : For Textile Industry, export is the main earnings;many global players prefer the products to be source tagged for their retail customers. Describe more about, Source tagging market in India in particular and subcontinent in general.
DP : Tyco is present in India for more than 2 decades now. We have a strong presence in Aviation, Industrial & Manufacturing, Commercial Offices, IT & ITes, Retail, Networking and technology spaces, Pharma and HealthTyco is dedicated to adcare segments among others. We have been vancing fire safety and seassociated with many of the country’s prestigcurity by finding innovative ious projects in Infrastructure segments. Many of the leading retailers are our customers and ways to save lives, improve leading lights of other industries believe in businesses and protect Tyco’s products and solutions.
DP: India is a preferred and growing export nation for many brands since years. Textile exports are set to touch $ 50-billion mark in the current fiscal. Many of our EAS customers mandate the application of Anti-theft & RFID tags and labels at manufacturing. This process of people where they live and tagging at source of manufacturing is broadly TVC : How’s the journey till now in Textile, work. termed “Source tagging”. Today, source tagApparel & Retail industry? ging is a key initiative of global retailers in order DP : Tyco has been a market leader in adto save cost and valuable time. By practising dressing retail and fashion industry’s security solutions. 80% of source tagging, the merchandise arrives shelf ready. Though Indian world’s top 200 retailers rely on our Sensormatic Branded Asset retail industry is slow in picking up new initiatives, we are confident Protection(EAS) solutions. Tyco offers a full suite of Fire Detection of active source tagging implementation in the very near future. and Protection solutions apart from Video Management, Access India being a strategic location also has started market coverage in Control, RFID, Traffic Intelligence and Store Performance solutions. the subcontinent. Today, we are expanding our business in counOur solutions help the industry from the source to finished goods tries like Srilanka and Bangladesh actively and would like to grow till their offerings reach the customer
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www.textilevaluechain.com
June 2015
stronger in the days to come.
TVC : How TYCO different from other solution providers in Indian & Subcontinent markets(competitors)? USP? Product Differentiation/ Innovation? DP : Tyco is a long standing and strong player of global presence in the security industry. Tyco is the world’s leader in Fire & Security Industry. In India, Tyco has the distinction of addressing multiple market verticals with its world class product offerings and solutions. Tyco products and solutions are installed across countries, industries and locations. Tyco also offers customised service to our customers across locations. With 10 offices and 350+ locations Pan India, we are closer to our customers in helping them protect their lives and assets.
TVC : What is your promotional strategy in the Indian Textile Market? DP: Tyco has been very active player and a market leader in Indian domestic retail market. We would like to bring the similar brand and service presence into the textile market. We have taken good initiatives by participating in events of textile related industry in the last two years. Our participation in Tex India show has been a great experience. We will aggressively pursue our marketing activities by event participations and media presence in the future days too.
TVC : How does Tyco view the Textile Manufacturing sector 5 years down the line and how would you work with the manufacturers to make the place safer for their employees? DP: Indian apparel industry is expected to touch USD 221 billion by 2020 as per a report by Technopak. This means an exponential increase in the manufacturing, warehousing and retail space capacities. Tyco has the world class solution offerings and planned skilled manpower to meet industry requirements. We actively promote the use of technology to save lives and assets of our customers. q
News Nuggets 1] The Rieter Test and Training Centre has been opened at DKTE society’s Textile and Engineering Institute in Ichalkaranji. Obliviously, students of this institute will be one step ahead. 2] Hon’ble Chief Minister of Maharashtra inaugurated a Textile Park in Amravati. Eight more textile parks would be set up in Maharashtra at Yavatmal, Buldana, Jalgaon, Aurangabad, Jalna, Parbhani, Beed and Nanded. This will give a great fillip to the textile industry in Vidarbha and Marathwada. The setting up of additional Spinning capacities in the cotton belts is a right step to protect the interests of cotton growers. 3] A meeting of stake holders in the textile industry is likely to be held in Delhi in July this year to discuss problems of the textile industry and recommend viable solutions. 4] Punjab is undertaking a project for mechanisation of cotton cultivation. The project will cover 400 acres. 5] Government of Tamilnadu has been taken keen interest in the development of Textile Industry.
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The following has been achieved in the last 4 years: • 10,000 Green houses to handloom weavers at a cost of Rs. 260crore. • Interest free loan of Rs. 179.34 crore and subsidy of Rs. 112.50 crore to Tiruppur Common effluent Treatment Plants. • Free Power at a cost of Rs. 757 crore to 2, 35,870 handloom and powerloom weavers. • Old-age pension and Family pension for handloom weavers enhanced to Rs. 1,000 • Contribution amount discontinued by Government of India to 71,842 weavers is being paid by State Government. 6] Normally, prices of Umbrella go up on the onset of Monsoon. This, year seems to be different as prices may remain at last year’s level. 7] Bed linen manufacturers in the country are faling the heat because of large scale imports of bed sheets from china. Some manufacturers may not be able to sustain the blow. q
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MANUFACTURING FOCUS
MAKE IN INDIA The Future of Indian Manufacturing Mr. Harish Chatterjee VP- Manufacturing
The World Economy is mending from an extended stagnation. tunities. They have been proving their skills in USA and other westThe world is fast changing due to adjustment of manufacturing ern countries. We have to indeed create aspiration and ecosystem weights across the globe. China and japan have been facing chalfor the youth in contributing towards Make in India. lenges of increasing costs. The US and Mexico are trying to reThere are few things which every manufacturing leader should store their share of global manufacturing. In the meanwhile, India keep in mind to make this a manufacturing friendly country. Right witnessed the most assertive election verdict in 3 decades and is infrastructure shall build great supply chain and smooth channel hungry for growth. The confidence seems to bring an economic between manufacturing units and customers. The major input cost revival through manufacturing as the key agenda. Keeping this in for industries is Power, water, manpower etc which are in an abysmind Prime Minister Mr. Narendra Modi has mal state. Government policies have become launched the Make in India Campaign to enviIn today’s world market unfavorable. We show high concerns for polsion India as a global manufacturing leader. there are two ways of lution and environment but industries are In today’s world market there are two ways of surviving in the industry. Firstly, a Research oriented Industry with outsourced model to obtain a good market share by generating quality products and distribution strategies.Otherwise, a manufacturing based Industry is the other mode of survival.
surviving in the industry. Firstly, a Research oriented Industry with outsourced model to obtain a good market share by generating quality products and distribution strategies. Otherwise, a manufacturing based Industry is the other mode of survival.
The Indian Manufacturing primarily has to surpass the battle of rising costs. Currently, dimension of India’s cost competitiveness is good only next to Indonesia in lower manufacturing costs. When we go beyond the cost parameters India’s dimensions do not look bright. India ranks 142(as per BCG survey) in the ease of doing business and has seen a downward trend in fields of business, logistics performance and corruption perceptions.
The Make in India is targeting a 25 percent of National GDP through Manufacturing and creating a 100 million jobs. India has a good number of young Intellectuals who can deliver extraordinary results if we can provide them guidance, resources and right oppor-
Textile: Mills demand gas supply for 7 days a week Expressing dismay, the All Pakistan Textile Mills Association (Aptma) has opposed Sui Southern Gas Company’s (SSGC) decision to curtail gas supply to the industry for at least two days a week in Sindh. In a statement, Aptma Sindh-Balochistan Region Chairman Tariq Saud said the regional chapter of the association had been asking the Ministry of Petroleum to direct SSGC to provide gas seven days a week to the industry. He pointed out that as winter had passed and domestic gas
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wasting gas and fail to properly utilize it for generation of power and steam due to higher costs. Industries find alternatives which create pollution to the environment and resources provided like ETP etc are also not maintained properly.
On the road to global leadership and making this campaign successful we have to revive our manufacturing policies by taking few issues into immediate consideration. Firstly, labor reforms for cost competitiveness and production growth. Second, clearance procedures have to be revived while the taxes imposed have to be reconsidered and access to credit terms have to be provided. Industries try surpassing several taxes and procedures by finding shorter paths and leading to bad quality of products in the market. Third, focus on creating R&D and technology led innovations for gaining global competitiveness which has to be supported financially and technologically by the government. q
consumption for heating purposes in interior Sindh was no longer required, supplies could be diverted to the industries. Saud stressed that the textile industry was passing through very difficult times with exports down almost 16% due to recessionary trends globally. “Our input costs have risen and it has become impossible to remain competitive.” The industry fears further gas closures will lead to higher costs and result in large-scale closures and unemployment. Another major factor in the rising input cost is the levy of gas infrastructure development cess (GIDC) on gas consumption.
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TECHNICAL REVIEW PAPER Overview of Nonwovens Bonding Technologies Aniket Bhute
Scientist & Assistant Director, D.K.T.E. C.O.E.(Nonwovens), Ichalkaranji.
Abstract Nonwovens producing include four stages, raw material preparation, web formation, web bonding, and finishing of nonwovens. The web bonding techniques affects the properties of the end products. Web bonding mainly classified as, needle punching, hydro-entangling, thermal bonding, stitch bonding, and chemical bonding. The paper focuses on different web bonding techniques and factors affecting properties of end products. Keywords: Nonwovens, mechanical bonding, thermal bonding, chemical bonding, wipes, textiles 1. INTRODUCTION In today world, nonwovens, as highly engineered fabrics can be seen in every areas of life with their many attractive and versatile properties. They are attractive because of high capacity production availability and cost effectiveness; they are versatile because with so many different techniques, different performance requirements can be met. It can be easily understood, like for every other product, there is an expectation from nonwovens to have better quality and standardization. In order to improve the quality and provide standardization, it is necessary to understand property structure relationship. As it is obvious that structure is produced by using proper materials and the proper processing method, hence property, material, structure and process dependence can be easily realized. However, proper material production and selection is out of subject when dealing with mechanism and performance of nonwoven processes. Thus, process – property – structure relationship must be well understood in order to meet expectations and requirements with the nonwoven product [1]. Structural factors, which are affected on nonwoven fabric properties, can change one procedure to other. Some of them are stem from bonding procedure and can be listed as following; bonding type, bonding area, bonding density, bonding strength, bonding point distribution, and fiber movement availability within the bonding area. Some others are related with structure of fibers, such as fiber orientation and distribution, fabric dimensions and dimensional stabilities, interface properties between binder and fiber, fabric porosity, and pore size distributions. In this study, we will try to examine the working principles, potential uses, and effectiveness of bonding techniques to give an idea about property – structure relationship based on bonding type. 2. BONDING METHODS for NONWOVENS Needle punching It is the mechanical bonding method that has the principal mechanism of interlocking and intermingling of fibers by means of barbed needles. Besides mostly used web formation methods of
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Ramchandran Sawant
Assistant Professor, Anuradha Engineering College, Chikhli.
carding and carding with crosslapping, air laid web formation and spunbond web formation are other possible web formation methods for needlepunched bonding technology [2]. Following web formation procedure fibers are fed to the needling zone known as needle loom. In needle loom there are five main components available; needle board, needles, bed plate, stripper plate, and delivery rolls. Bonding throughout the nonwoven mat occurs by the penetration of the needle into the fibrous web layers and in this way, highly loft structures can be produced. In order to have a precise needling, needles travel inside the holes which were placed on the needling plates and they make forward and backward motions. The primary component of needle punching, needle, has its own essential components to provide better bonding and mingling effects. On a needle, barbs and working blades have vital responsibilities to blend the web and give the properties to the structure [3]. On the fabric surface it is possible to realize needling marks, which are stem from pretty high punching movement. In needle punched nonwovens, it is possible to mention about two different fiber groups, some of them are directly exposed to needle impact and others are indirectly affected, even some are unaffected. Thus, these two groups compensate each other and the undesired effects of needle punching are minimized. The depth of fiber penetration and needle marks are related with bonding quality, namely fabric quality and performance properties. Related with those mentioned factors, number of barbs, punch density, needling speed and fiber types are other important quality parameters for needle punching process. One of the most remarkable characteristic of the needlepunched nonwovens is their high porosity and high pore distributions [4]. Preneedling is an optional step which improves the quality and provides better properties to the end product. With pre-needling the web thickness is reduced, the strength is increased and more uniform structure can be produced [5]. Needle punched nonwovens are used in many application fields respect to their desirable properties. Dimensional stability, permeability, drapeability, moldability, acoustic and thermal properties, tensile properties are few of them. Depend on these properties needle punched nonwovens are used in automotive, construction, home furnishing industries, geotextiles, shoe felts, blankets, filters, insulators and so on and so forth [2]. Hydro-entangling Following the web forming process, fibrous web was transferred into the bonding stage on a conveyor belt. Heavily dry laid systems are used by many manufacturers to get spunlace nonwovens, but wet laid and polymer laid web forming applications are in use as well. Although most of the companies prefer dry laid web forming units, their machinery types and process orders may vary
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June 2015
from one to another. In bonding stage main parameters are impact force produced by high pressure water jets, structure of the support members, fiber types, speed of the conveyor belt, prewetting of the web, and lastly the number of manifolds in use. It is obvious that these parameters are also affected on the quality of the end product, hydro entangled fabric. Unlike other fabric formation methods, it is difficult to understand the mechanism of the hydro entangling in fabric formation level, because both conveyor belt and water jet have very high velocity values during the process and it is difficult to realize what’s happening when water jet hits to the fiber web. What’s more, there are several other factors available in addition to jet pressure and they are highly effective when energy transfer occurs between fiber web and water jet. Nevertheless, the amount of pressure that is applied on a web is far more important in defining bonding quality. If water jets are applied with low pressure values only some fiber entanglement on the web surface can be obtained. Reversely, if water jets are applied with high pressure then both fiber orientation directions may change and also fibers may deform and break [4]. Apart from the water jet effect, in the second plan, supporting structure type and entangling density are other parameters that affected on the performance of the final product [8]. Hydroentangled fabrics heavily consumed in wipes industry and medical nonwoven industry because of their additive free, lint free, soft, strong, and cost effective characteristics. Also they are used in several other industries such as automotive component manufacturing, filtering, packaging, insulation, roofing, geotextiles, diapers, and hygiene products. It is possible to extend the application fields of hydroentangled fabrics for following products; interlinings, mattress pad covers, scrub suits, towels, flannel replacement fabrics, washable domestic fabrics, high temperature protective clothing, artificial leather and so many others [4]. Spunlace nonwovens are not perfect structures with their poor stretch recovery, poor abrasion resistance and poor creep resistance [8]. However, some properties are accepted relatively good when evaluated with some other criteria. For instance, when considering cost effectiveness, aesthetic may not be a concern; when considering the application in filter industry the strength is not real requirement. Thermal Bonding In order to perform thermal bonding of the fibrous web structures there is a prerequisite that must be met. Fibrous web must include thermoplastic fibers or at least thermoplastic powders. Most commonly used thermoplastic fibers are polypropylene, polyester, nylon, polyethylene and some others. There are basically four types of thermal bonding available in the market. In through – air bonding method, heated air applied on a fiber web when it moves on a conveyor band. In this method it is important to adjust the length of flat bed, temperature of the heated air and throughput speed to enable sufficient dwell time. This dwell time is pretty important for some certain basis weight webs to provide required thermal equilibrium. This method is applied generally to high loft structures to get homogenous bonding. In impingement method (another name for through - air bonding), web is transported to the oven and from the nozzles hot air is impinged to the web surface and bonding formation is occurred. As it may be guessed, in this method the bonding efficiency on the surface can be good while it is very few, even close to zero, in the depth of the web. The efficiency of the bonding is affected from the following factors; thickness of the fabric,
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speed of the belt (amount of the throughput), and temperature of the heated air which are required to be adjusted properly [8]. In calendar bonding, web is passed between heated rollers and bonding occurs at that time. If the rollers are smooth then every cross-over point can be bonded and is called as area bonding. The produced fabric with this method will be strong, stiff, and relatively thinner. In another version, point bonding is seen and heat is applied in selected areas on the web due to the engraved patterns on one of the rollers. Between bonded areas the fibers are formed bridges, so they are called bridging fibers. Sometimes the fibers are excessively melted at contact points with rollers and they flow around the bonding points and in this way, secondary and less strong bonds might be formed. In infrared bonding technique, radiative mode of heat transfer is performed. It is not preferred method as a result of its high cost and insufficient bonding characteristics. Last form of thermal bonding is ultrasonic bonding. It is based on a vibrational motion stem from ultrasonic frequency formed in a device which is called as a horn and by means of energy conversion, the bonding takes place. When the web comes into a contact with the horn, it starts to vibrate and the passage for web narrows down. Then thermal energy is generated depends on frictional force between web and horn surface and bonding takes place. Although it is not economical way of bonding, it is suitable method to join laminates and produce quilt type products [8]. The explicit characteristics of thermal bonding are low maintenance cost, low raw material and energy costs, product versatility, smaller space requirements, better quality characteristics, increased line production and reduced cleaning time of the system [9,10]. In numerous areas, thermal bonded nonwovens can be seen. The most important ones are, hygiene disposable products, durable building and construction materials, air and water filtration media, horticultural products, clothing, footwear, roofing felts, carriers, tea bag applications, surgical gowns and drapes and so on and so forth [4]. Stitch bonding It is formed by stitching of the fiber bundles with fibers or yarns. Fabric generally may have clear stitching pattern on one side or both sides. There are three main types of stitch bonded fabrics available in the market; fabric with one side stitches, fabric with one side stitches and one side projection of pile of pleating fibers, and fabric with two side stitches. Generally in stitchbonded fabrics, yarn stitches aligned within the fabric plane. The performance of the stitchbonded nonwovens are dependent on the web density and structure, stitching yarn structure, stitch density, machine gauge, stitching yarn tension and stitch length. The number and size of stitch holes are determined by the previously given factors. The tensile strength in MD direction and extensibility in CD direction can be adjusted by the stitch construction. The needle motion is very similar to warp knitting technology since it is adapted from warp knitting, With this technology it is possible to change fabric physical properties such as flexibility, and strength by a proper stitch yarn selection. In order to produce flexible fabrics, Lycra is used as a stitch yarn, and in order to produce strong fabrics, Kevlar is preferred. Although stitchbonded fabrics are used to produce vacuum bags, geotextiles, filters, and interlining, the biggest market is shaped by home furnishing industry. It is anticipated that stitchbonded fabrics may invade the woven market in near future [8]
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Chemical Bonding It is a versatile technology and fabric formation is materialized by the application of resin or latex to the structure. It is used in several areas such as industrial and food service wipes, dryer softener substrate, wet wipes and baby wipes, filtration media, and garment interlinings. The characteristics of the latex used for bonding nonwovens are very important because of their effects on performance of the nonwovens. Glass transitional temperature must be lower to pioneer easy processing. Also it must have proper backbone composition, functional groups, reactivity, molecular weight, and surfactant type. Otherwise durability, tensile strength, softness, hardness, elasticity, and many other properties might be badly affected because of the wrong latex selection. There are four types of chemical bonding methods available in use. Print bonding is so similar to printing of the woven fabrics. Gravure roll printing and screen printing are the two common print bonding methods, where, gravure roll printing is used generally for the bonding of lightweight nonwovens. Spray bonding is another chemical bonding method that sprays latex on a web when moving on the conveyor belt. It is suitable for the bulky, high loft applications. Saturation as a third method comprises direct dipping of a fabric in a latex tank and performing drying in a dryer. This method has handicap that may change or destroy the uniformity of a fabric. Last method in chemical bonding which is called as foam bonding can be used for all types of nonwovens. It provides resiliency and softer hand to the fabric. In order to dry the fabrics, hot cans, infra red technology, impingement, microwave, radio frequency and some others are used [8]. To provide a high liquid absorption capacity on wipes, to resist dry cleaning and washing of interlinings, to maintain barrier properties on some type of hygiene and medical products, binders are applied to the fabrics. To have better abrasion resistance and good handling, the outer part of the shoes are made from chemically bonded nonwovens. Also in automotive industry, upholstery and bedding applications, insulation applications, prefilters and roofing membrane applications, chemical bonding methods are used [4]. 3. CONCLUSIONS In this study basically three main bonding techniques for nonwovens, mechanical bonding, thermal bonding, and chemical bonding were reviewed. It was seen that among them, mechanical bonding was divided into three main subgroups; hydroentan-
Textile exhibition: Designs inspired from kufic script on display LAHORE:
The letters and other patterns in the designs are inspired from the kufic, one of the earliest scripts in which the Quran was written, says Iram Zia Raja, the National College of Arts Textile Department head. Raja says the patterns are made using gold laces and threads. “Kufic script has always been a source of inspiration for me. The lines in this script are straight and simple, she adds. She says the colour palette she has chosen for the fabric is more modern. “I have used orange and red more than any other colours,” she adds. She says her work represents a balance between the old and
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gling, needlepunching, and stitchbonding. While other techniques also differ from one to another, their differences were limited with only their application methods such as calendar bonding - through air bonding, and print bonding – spray bonding. It is clearly understood from the descriptions in the text that contribution of each bonding methods to the final nonwoven products may differ. The functionality and the performance characteristics of the products such as strength, durability, drapeability, application field, barrier properties, and some others can be classified among these differences. Thus, the selection of proper bonding method and material is pretty important in defining final properties and quality of the nonwoven based products. Moreover, since nonwoven mats are produced with very high production rates, the process variables and parameters should be adjusted very carefully and sensibly. Therefore, in order to prevent high amount of loss in the production stage, well-trained labors must be employed for highly engineered nonwoven fabric production. 4. REFERENCES 1. Pourdeyhimi, B., Kim, H., S., The Role of Structure in Mechanical Properties of Nonwoven Fabrics, Textile Asia, Vol: 32, 2001 2. The Needlepunch Primer, INDA, 1995 3. Krcma, R., Nonwoven Textiles, Textile Trade Press, Manchester, 1967 4. Russell, S., J., Handbook of Nonwovens, Woodhead Publishing Ltd., 2007 5. Mrština, V., Fejgl, F., Needlepunching Textile Technology, Elsevier, NY, 1990 6. www.edana.org, Retrieved on 06.19.2011 7. http://www.engr.utk.edu/mse/Textiles/Spunlace.htm, trieved on 06.18.2010
Re-
8. Batra, S., K., Pourdeyhimi, B., Shiffer, D., Fiberweb and Nonwoven Production Class Notes, 2004 9. Turbak, A., F., Nonwovens: Theory, Process, Performance, and Testing, Tappi Press, 1993 10. Chand, S., Bhat, G., S., Spruiell, J., E., Malkan, S., Structure and Properties of Polypropylene Fibers During Thermal Bonding, Thermochimica Acta, 2001 11. Barnard, W., Spunlace Items for Healthcare, INDEX 87.
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the new. “It offers a contemporary take on tradition,” she adds. Raja says in most of her work she has focused on exploring the relationship between tradition and contemporary trends in the society. “I have read and experienced a vast variety of things in my career. All those influence my work,” She says. The displayed work was well received by the visitors on Thursday. Sajida Omar, a visitor, says she particularly liked the use of gold laces and threads in the designs. Tyco International Declares Quarterly Dividend Tyco International plc (NYSE: TYC) announced today that its Board of Directors has declared a quarterly dividend of $0.205 per share for the fourth quarter of fiscal 2015, payable on August 19, 2015, to shareholders of record at the close of NYSE trading on July 24, 2015.
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June 2015
TEXTILE TECHNOLOGY
Ideas That Impact India
Mr Anuj Bhagwati, Head – A.T.E. group For 75 years, A.T.E. has been working on achieving social goals through business. And over these 75 years, A.T.E. has grown into a successful, multidimensional engineering group. A.T.E. was founded as a part of India’s freedom movement. The idea – to sell high quality German textile machinery in India to challenge the prevailing British monopoly in the field. This endeavour helped in the modernisation and growth of the Indian textile industry, which now holds a strong position in the world. A.T.E. today is recognised as a leader in textile engineering in India, offering end to end solutions across the textile value chain.
the education, healthcare, and manufacturing sectors have shown increased productivity and with healthy fresher air. If fresh air can work wonders, fresh cool air in hot climates is even better. That is precisely what HMX, a part of the A.T.E. group, does with its unique, patented technology. It provides fresh cooled air for the industrial and commercial sectors that not only ensures people comfort and thereby enhances productivity, but also be used to improve process efficiency. And HMX’s solutions can do this without the heavy power used by air conditioners, so they’re environment friendly with an affordable lifecycle cost!
At the heart of all HMX products is the DAMA (Dry Air Moist Air) – a patented heat exchanger (US and Australian patents received). It’s a cross flow plate A.T.E. was founded as a type sensible heat exchanger built out of an enpart of India’s freedom gineering polymer, which provides a non-corromovement. The idea – to sive, non-biodegradable, and anti-bacterial substrate, and has an efficiency of more than 80%.
A.T.E. also diversified into the fields of flow technology and print and packaging equipment in the 1970s, thus building-up expertise in diverse fields. In the 2000s, a new generation of management took over the reins at A.T.E. The strategies going forward was to build on the businesses A.T.E had been in, but also go further in achieving social objectives. Well before “green” became a buzzword, A.T.E. decided to build up environmental businesses. Moreover, A.T.E. thought it right to “invent in India”, and set about creating original and sustainable products and solutions. And so, in 2006, A.T.E. started developing products based on Machine-to-Machine (M2M) technology. Since then, A.T.E. has also developed technologies and deployed products in wastewater treatment, eco-friendly cooling solutions, and energy efficiency solutions. So, A.T.E. encompasses three essential elements of life: Air, waTer, and Energy.
sell high quality German textile machinery in India to challenge the prevailing British monopoly in the field. This endeavour helped in the modernisation and growth of the Indian textile industry, which now holds a strong position in the world. A.T.E. today is recognised as a leader in textile engineering in India, offering end to end solutions across the textile value chain.
“I have always been passionate about the environment and wanted to create a positive environmental impact, particularly as I am deeply concerned that India will be badly hit by climate change. I also wanted to promote a culture of thinking for oneself and crafting original solutions. It’s A.T.E. way to work on social goals through business. I believe we will create sustainable stakeholder value and will help society”, said Mr Anuj Bhagwati, the head of the A.T.E. group, which succinctly underscores A.T.E.’s commitment to “invent in India”. Here is an overview of A.T.E.’s businesses in the environmental space: Next generation cooling solutions Fresh air can work wonders. A growing number of studies in
June 2015 www.textilevaluechain.com
HMX products minimise the use of refrigerants and energy intensive compressors to supply cool air, using the following configurations to supply fresh, clean and cool air for different applications: l Only Indirect Evaporative Cooling (IEC) l Combination of Indirect and Direct Evaporative Cooling (IDEC) l Combination of indirect evaporative cooling and cooling coils (DX or chilled water) HMX products comprise of two broad product families – HMX-Ambiator, and pre-cooling fresh air units. All HMX’s products improve indoor air quality inside factory sheds, office buildings, and education and healthcare facilities.
HMX has many installations covering the industrial and commercial segments and has a rapidly growing installed base. With more than 20 million CFM spread over 4 million+ square feet in India, HMX has the world’s largest installed base of indirect evaporative cooling. More and more large corporates and multinationals from across segments such as automobiles, engineering, food and beverage, etc., are turning to HMX for innovative cooling solutions to increase the satisfaction of their workforce, and for improving the process comfort. The growing list of satisfied customers of HMX includes progressive companies such as ABB, Bilcare, Bosch, Coca Cola, Dabur, Forbes Marshall, GE, HAL,
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Himalaya, Honeywell, ICRISAT, ITC, Lupin, NRB, SKF, Suzlon, Syntel, Taj Hotels, Tata Motors, TVS, Victor Reinz, VW, Wipro, etc. HMX is thus redefining cooling – uniquely, providing both energy efficiency and fresh air. World class wastewater treatment solutions The water situation in India is causing increasing concern,as our growing population, industrialization and climate change are all exerting increasing pressure on our water resources. Water quality is also a major concern for India. Proper treatment of waste water to enable compromise free recycling or discharge is essential to human health, agricultural productivity, and long term economic growth. A.T.E.’s entry into wastewater treatment is based on its experience that wastewater is the best source of water. Recycling wastewater can go a long way in mitigating the water crisis, if modern treatment technology is optimally leveraged.A science based approach is the cornerstone of A.T.E.’s wastewater treatment venture. A.T.E. Envirotech Private Limited offers comprehensive, innovative and cost-effective wastewater treatment and recycling solutions, including zero liquid discharge. The company undertakes turnkey projects as well as upgrades existing plants through value added products. With a team of highly experienced professionals and with its own R&D lab, the company has built-up strong capabilities in wastewater management. As a result of continuous process development, A.T.E. Envirotech has introduced several innovations in the field. The ‘AAA’ (air floatation, anaerobic, aerobic) technology is a highly successful innovation from A.T.E. that enhances biological treatment efficiency and minimizes sludge generation. The company has also introduced AVR (Anaerobic Venturi Reactor) based biomethanation plants that can handle difficult to treat effluents. To overcome the challenge faced by the API (Active Pharma Ingredients) industry in treating their wastewater, A.T.E. has also developed a highly successful solution for API wastewater treatment using anaerobic + aerobic biological treatment. The wastewater treatment project from A.T.E. is also packaged with ‘EnviroCola’, a customized online assistance system that will provide all the information needed about the ETP, which can be accessed anytime, anywhere. A.T.E. Envirotech works across industry verticals like textiles, dairy, sugar, pharmaceuticals, petrochemical, chemical, healthcare, food-processing and building segment. The company has already executed over 200 projects in India and other countries that include USA, Zambia, Philippines, Ethiopia, Malaysia and Indonesia, while many more projects are underway. It has built a strong base of highly satisfied customers, many of which have placed repeat orders. Some of the well-known names in the industry such as Chitale Dairy, Godavari Biorefineries, Renuka Sugar, Torrent Pharma, Cipla, Jeyavishnu Textile Processors, Indo Rama, Larsen & Toubro, VatechWabag, Tata Steel, Voltas, Municipal Corporations of Ahmedabad, Kolkata and Delhi, etc., are customers of A.T.E. Envirotech. The company also partners with Huber of Germany for special wastewater treatment projects. With over 33,000 installations word-wide and presence across about 60 countries, Huber is a world’s leading company in the field of water, wastewater and sludge treatment. Huber’s main thrust in India is the municipal segment as well as industrial effluent treatment.
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Efficient pumping solutions for water management Efficient water management is integral to water conservation. A.T.E. has over 3 decades of expertise in flow technology. It now offers a wide range of highly efficient pumps that includes well known global brands like ABS, Yamada, Iwaki, along with A.T.E.’s own brand of TeraFlow pumps and BoostStar HyP systems. TeraFlow vertical multi-stage stainless steel centrifugal pumps are designed and engineered to deliver the best possible hydraulic efficiency in diverse applications such as water supply in industrial and commercial establishments, industrial washing plants, water treatment plants, etc. The in-line design of the TeraFlow pump makes it compact and easy for installation. TeraFlow pumps are equipped with mechanical shaft seals of detachable cartridge type for easy maintenance. The TFVI and TFVL series of TeraFlow pumps are standardized pumps made of all stainless steel 304/316 construction. A.T.E. BoostStar Hydropneumatic (HyP) systems are engineered using the most stringent quality and testing standards. At the heart of BoostStar HyP systems are A.T.E.’s TeraFlow centrifugal pumps and instrumentation & control systems made of the best components. The scalable design of the BoostStar HyP systems enable a variety of configurations, ranging from fixed speed systems to advanced and fully automated variable speed systems. The BoostStar HyP systems are available in a wide-range of configurations of pumps (vertical, horizontal, submersible), and with varying levels of automation and intelligence and are designed for the lowest total cost of ownership. Here again, A.T.E. serves across the industry verticals such as textile, pharmaceutical, chemical, etc., and for a variety of applications. Once again, A.T.E. has built a strong base of satisfied customers with excellent application know-how, high quality products, and excellent after-sales-service support. Energy Efficiency Energy is the third leg of the A.T.E.’s clean technology platform. Energy efficiency and renewable energy are the key approaches to reduce our demand for such carbon intensive fossil fuels. A.T.E. started its exploration of the renewable energy segment in 2008. Building on solid technical fundamentals and through continuous R&D, A.T.E. has developed a solar concentrator – a proven Concentrated Solar Thermal (CST) system that provides low-cost solar energy for various applications. A.T.E. has so far supplied solar concentrators to commercial laundries and community cooking applications in Maharashtra and Goa. Both sectors need hot water and steam. After careful study of customer needs and usage pattern, the solar concentrator was integrated with an optimized hot water system. This solution was designed and implemented with a user friendly interface that can be operated by an unskilled person (anybody who can operate an ATM or smart phone can operate this system). Customers are highly happy with the solutions provided with numerous benefits ranging from improvement in profitability, ease of operation, worker comfort, besides huge environmental benefits. IoT based Machine-to-Machine (M2M) Solutions M2M or remote monitoring based on the IoT (Internet of Things) is now recognised as a potent tool for operations and management effectiveness. This is a natural progression in the connected world, where devices connect to each other, generate and
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June 2015
transmit reports. Tracking, measurement, and communication are critical aspects of efficient asset management – efficiency both in terms of product performance and resource consumption. This is an important dimension of any sustainability programme. The IoT technology adoption is growing at a mindboggling pace and it is estimated by Gartner that the IoT installed base will grow to 26 billion by 2020. A.T.E. anticipated this need and the potential many years back and has been relentlessly building-up its capabilities in this domain. Today EcoAxis, a business unit of A.T.E., provides a unique value proposition to its customers with its well proven products and solutions. EcoAxis’s IoT based M2M technology enables continuous remote monitoring of industrial plant and equipment as well as energy and environmental resources. This system – called SUPERAxisTM – consists of electronic hardware & software connectors for logging data from machines, instruments and sensors. Using cloud-based computing, it delivers analytics and alerts in the form of reports, dashboards, emails and SMS - anywhere, anytime and on any device. EcoAxis has executed a large number of prestigious projects, which includes remote monitoring of Thermax absorption chillers, a CEO dashboard for Somaiya Biorefineries, thermal power plant monitoring for KSK Energy Ventures, etc. SUPERAxisTM has been implemented for complete plant monitoring like textile process houses, power plants, printing & packaging units, sugar complexes, etc. as well as for utility equipment like boilers, heaters, chillers, compressors, gasifiers, cooling towers, DG sets, and water, waste water treatment plants, etc. The solution has benefited end users in improving production, productivity, and availability, reducing losses, as well as effectively managing energy & resource utilization and improving plant maintenance. OEMs and O&M service providers have packaged EcoAxis’ remote monitoring solution to monitor their installed base of equipment for improving service revenue and service processes, reducing warranty costs, and field validation of their product / technology designs. No wonder, EcoAxis so far analysed over 5 trillion data points, which is growing at a 1.25 trillion data points every year. Thus, EcoAxis has established itself as a pioneer in the IoT space. A.T.E. committed to sustainable growth A.T.E. has taken several steps within the group to promote sustainability and demonstrate its theme of “Partnering people and the planet”. A.T.E.’s new facilities in Ahmedabad and Pune encapsulate many environment-friendly features and are built to be LEED compliant. A series of sustainability initiatives have been integrated as a part of the everyday work practices in the A.T.E. group companies. A.T.E.’s foray into clean technology businesses stems out of understanding of, and commitment to sustainability. With the deep domain knowledge the group has gained over the years, A.T.E. believes that its products and solutions will contribute to sustainable growth in India. q
“Throughout life people will make you mad, disrespect you and treat you bad. Let God deal with the things they do, cause hate in your heart will consume you too.” - Will Smith
June 2015 www.textilevaluechain.com
African textile exports may reach $4 billion under US trade deal Africa’s textile and apparel exports to the United States could quadruple to $4 billion over the next decade through an extended duty-free trade treaty, a US official said on Wednesday. The trade program known as the African Growth and Opportunities Act (AGOA), currently before American lawmakers, provides eligible sub-Saharan countries duty-free access to the world’s top apparel market, giving Africa a competitive edge over suppliers such as Bangladesh and Vietnam. The US administration has already called for Congress to renew the program well ahead of its expiry date of Sept. 30, 2015. The program, in which about 40 African countries are eligible to take part, could be extended another 10 years. “Ten years is a game-changer,” said Gail Strickler, assistant United States trade representative for textiles and apparel, adding the extension could be passed “imminently”. “Africa should be able to quadruple its exports, literally without a lot of trouble, creating another 500,000 new jobs.” Established in 2000, AGOA has already been renewed past its original 2008 expiry date. Last year, US clothing imports from sub-Saharan countries reached $986 million, up nearly six percent from 2013, as countries such as Lesotho, Kenya, Ethiopia and Tanzania participated in the program. Analysts said Africa had lower labour costs and abundant raw materials, such as top-quality cotton from Uganda, but congested ports, a poor road network, lack of skills and old technology were a hindrance. “While the costs may be rising in Asia, they are still way more competitive than Africa, especially on productivity, quality and product range,” said Joseph Nyagari, an official at the Nairobibased African Cotton and Textile Industries Federation. African officials and Asian firms with factories in Africa welcomed AGOA’s extension, saying investment would follow. KeleboneLeisanyane, chief executive of the Lesotho National Development Corporation, said the land-locked southern African nation, a top exporter under AGOA, plans two new fabric mills. “I think for Lesotho AGOA is critical and its renewal means the survival of many families, with around 35,000 workers in the apparel and textile industry,” he told Reuters. Taiwanese firm New Wide Garment, which has six factories in Kenya and one each in Lesotho and Ethiopia, also aims to expand. “Now with a ten-year extension it means most of the investors will jump into Africa. We intend expanding more in Africa,” HemanBoodia, its Africa vice president told Reuters. q
“I guess the big thing is that I don’t buy anything first-hand. It’s a personal policy I have for all sorts of reasons. If you research to the textile industry yourself, you’ll know why. I came to it personally.” - Ezra Miller
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POST EVENT REPORT “CHALLENGES & OPPORTUNITIES IN TEXTILE PROCESSING - A WAY FORWARD”
The Textile Association (India), Mumbai Unit organized a Seminar on “Challenges & Opportunities in Textile Processing – A Way Forward” in Thane on May 21, 2015. The Chief Guest was Mr. R. R. Gorakhia, Director, Textiles Committee, Ministry of Textiles, Govt. of India. Mr. S. M. Khire, Director – Operations, Welspun Syntex Ltd. was the Guest of Honour. Mr. V. C. Gupte, Chairman, TAI, Mumbai Unit welcomed the guests and delegates.
Mr. S. M. Khire, Director – Operations, Welspun Syntex Ltd. expressed his views on “Zero Liquid Discharge System”. He discussed the core of Zero Discharge System developed by Welspun Syntex Ltd. as a success story. Mr. Vishwanath S. Shastri, Deputy General Manager, A. T. E. Enterprises Pvt. Ltd. presented the paper on “Effective technology in managing Textile Effluents”.
Mr. Arun K. Narkar, Jt. Hon. Secretary, TAI, Mumbai Unit & Convenor of the Seminar said that this seminar was organized in Thane so that the textile processing clusters around the city of Mumbai will be benefited. The focus of the seminar was mainly on Green Environment & Green Technology. Mr. R. R. Gorakhia, Director, Textiles Committee, Ministry of Textiles, Govt. of India in his inaugural address emphasised on “zero effect & zero defect” concept initiated by Government on Make in India. He also discussed about the conservation of water,
Dr. Binay Kumar Choudhury, General Manager, Control Union Certifications India Pvt. Ltd. discussed the importance of “Sustainable Certification in Textile Processing for Value Addition”.
steam, electrical energy, etc. in textile processing. Mr. A. V. Mantri, Hon. Secretary, TAI, Mumbai Unit proposed a vote of the thanks. The Inaugural Function was followed by Paper Presentation in which 5 papers were presented by eminent speakers. Mr. Elliyas Mohammed, Business Development Manager (Disperse Dyes) and Mr. Subrato Modak, Business Development Manager (Reactive Dyes) Colourtex Industries Pvt. Ltd. jointly presented the paper on “Development in Dyes at Colourtex to meet changing customer demands”. Dr. Ashok Athalye, General Manager – Technical Service, Atul Ltd. expressed his views on “Processing of High quality Yarn dyed Shirtings”.
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The Paper Presentations was followed by Panel Discussion which was moderated by Dr. G. S. Nadiger, Textile & Management Consultant. The Panel Comprised of Mr. Prabodh Patel, Textile Consultant, Mr. Prasad Pant, CEO, NimkarTek Technical Services Pvt. Ltd. and Mr. Mahesh Sharma, M-Tex Textile Processing & Environment Consultant. Dr. Nadiger explained various initiatives taken by industry and Govt. in regard to common effluent treatment plants for the last 20 years. He said the Govt. has given utmost priority for pollution related issues alongwith technology upgration and product diversification. Mr. Prabodh Patel discussed the importance of laboratory functioning to get the consistent results in bulk processing. Mr. Pant expressed his views to restrict the use of hazardous chemicals in the processing and why process and product chemicals knowledge is becoming a critical issue for business development. The hazardous nature and its effect should not be associated with international market as it affects environment & mankind and process optimization to target desired quality. Mr. Mahesh Sharma emphasized on cleaner production and stressed upon on resource conservation. The cleaner production helps to reduce volume and load of effluent and emission. The delegates raised various questions which were answered by the Panel. q
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June 2015
POST SHOW REPORT CONFERENCE AND EXHIBITION OF TEXTILE MACHINERY AND UTILITIES TEXPOSURE 2015
Ichalkaranji is one of the fastest growing decentralized textile sectors. The span of activities include spinning, weaving, processing and garment manufacturing. About 35 spinning mills having state of the art machineries are producing world class yarn. Weaving comprises over 1.2 lakh plain power looms, 20,000 automatic looms, 160 sizing units & 8000 shuttleless weaving machines. There are about 75 processing houses and about 60 garment manufacturing units. Due to easy availability of skilled and unskilled manpower, abundant water, technical and R & D support from DKTE and very conducive atmosphere for industrial growth, many leading houses from India and overseas have their plants setups in and around Ichalkaranji. Several high tech textile parks and garments parks are established. Govt. of India had implement Textile cluster development scheme to Ichalkaranji & few more such schemes are in pipeline for development of Ichalkaranji Textile Industry. DKTE Society’s Textile & Engineering Institute was established with the view to fulfill the requirement of technicians for growing needs of industry. Apart from education and dissemination of knowledge, DKTE is always on the forefront to support the industry in various capacities. Turnkey projects, troubleshooting, training, product development and R & D are some of the prestigious aspects of these activities. Rotary club of Ichalkaranji Central, a well known social organization, since its inception in 1992 undertakes activities in social, cultural, educational, medical and vocational fields. Since last few decades Rotary Central along with DKTE has been working for improvement and growth of textile and garment business in and around Ichalkaranji. With a view to disseminate knowledge and information to the growing textile industry about the recent advancements in the Textiles, Garments and Accessories, DKTE Society’s Textile and Engineering Institute and The Rotary Central as a part of their regular activity have organized “TEXPOSURE 2015” a conference and
June 2015 www.textilevaluechain.com
Textile exhibition on 30th April to 03rd May 2015. Leading Textile Machinery manufactures, accessories & utilities manufacturers exhibited their state of the art technology and products. Alongside a conference were conducted wherein renowned speakers from the various textile related fields highlighted on the recent advancements in machinery, energy savings and cost reduction. Leading Manufactures from Various countries like China, Japan, Germany & Italy were exhibited their stalls at Texposure 2015. Total 157 stalls were exhibited in this trade fair, more than 5000 technocrats visited & appreciated for conducting such type of Textile exhibition & conference. This mega event was extremely beneficial for technocrats, manufacturers, entrepreneurs, R & D organization, academia and students as it highlighted on new methods, technologies and possibilities. For making this event grand success, efforts taken by DKTE’s Textile & Engineering Institute Principal Prof. Dr. P. V. Kadole, HOD of Textile Department Prof. Dr. U. J. Patil & Rotary Club of Ichalkarnaji Central President Rtn. Amar Dongare. q
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POST EVENT REPORT COTTON COUNCIL INTERNATIONAL LAUNCHES COTTON USA IN INDIA
The COTTON USA trademark promises to deliver: purity, quality, and responsibility. In a competitive market, people need a reason to choose one product over others.
“Consumers are well aware and conscious about what they are wearing and are looking beyond just the end product; they want superior quality fabric assurance. U.S. cotton is seen by many as the best in the world, so when this premier cotton is combined with prestigious product developers, the result is truly top-of-the line, the best of the best,”said Renu Aggarwal, India Representative for Cotton Council International.
l COTTON USA strives for absolute purity, with no contamination. For the consumer that means that a product with the tag COTTON USA is clean, non-irritating, and safe. For the manufacturer, it saves time and money, and helps create a superior product.
She further added, “Premiumisation is a well established term in India and is happening across categories. The textile industry is also catching up by using premium quality – raw material, fabrics & innovation to make quality products in the country.”
Cotton Council International (CCI) is launched its 25-year old flagship brand, COTTON USA in India. COTTON USA promotes U.S. cotton fiber and manufactured cotton products in more than 50 countries globally.
The brand logo design embodies the idea that cotton is on a global journey. It’s the story of a single fiber, born in the USA, from seed, sun, and soil—not a refinery—that travels around the world, touched at each step by those who care, both in crafting and wearing. In the end, this fiber that was born in the earth, goes full-circle and returns to the earth.For more information, visit www.cottonusa.in. COTTON USA India Summit 2015 The COTTON USA India Summit 2015 held in Mumbai was an initiative by The Cotton Council International (CCI) to discuss the benefits of the recently launched COTTON USA in India with industry patrons.
l COTTON USA assures quality. Cotton straight off the plant is not always as pretty as it looks in the pictures. It’s not “ready-towear.” The quality of COTTON USA is par excellence as it is finished with inventive techniques to keep its natural qualities intact. l COTTON USA is committed to responsibility and ever-greater sustainability. COTTON USA is renewable, recyclable and biodegradable, so it can be returned to the earth from which it came. The Indian textile industry is primarily cotton focused, with cotton accounting for nearly 54% of total fibre consumption in 2014. However, the industry has inherent challenges like cotton pricefluctuation, inconsistentquality of indigenous cotton and over-dependence on monsoons. In order to meet the demand, there is a requirement of high quality cotton in the country. “The Indian textile and apparel market is now more than US$100 billion and growing at a healthy rate, and it has potential to double its export share from present 5% to 10% in next 10 year. We see a huge potential in this market and hence bring the best quality cotton to the Indian consumers.”said David B. Collins, Cotton Council International Senior Advisor
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The COTTON USA India Summit saw the presence of key people from the retail and trade fraternity. The event commenced with an insightful presentation by Mr.HarminderSahni,CCI India Representative,on COTTON USA’s vision and plans for Indian market supported by successful case studies. This was followed by a presentation from Mr. Justin Coates,ManagerMarket Analysis Cotton Incorporated,onthe Global and Indian consumer trends and the perception of cotton vis-à-vis other fibres. He also spoke about the growing prominence of e-commerce and organised retail outlets in India. The latter part of the evening saw a panel discussion by Industry veterans that included Mr. B.S. Nagesh, Founder TRRAIN and Vice Chairman Shoppers Stop, Mr.AniruddhaDeshmukh, President Raymond Ltd, Mr.Aditya Kulkarni, Brand Head Jack and Jones,Mr.HarminderSahni,CCI India Representative and Mr. Justin Coates,Manager Market Analysis Cotton Incorporated. The panel discussed on the role of branding at fibre level and the impact of the same at the consumer level. They also shared their thoughts on the future of COTTON USA in India and the key messaging that needs to be delivered in order to win over Indian consumers and establish COTTON USA as a brand. The summit concluded with one-on-one discussions over cock-
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l Online shoppers in India are not just buying clothing online, they are researching clothes (55%), comparing prices (55%), browsing styles (28%), and reading customer reviews (23%) to become better educated shoppers. l Indian consumers are not destination specific when shopping for clothing online, as the majority start their shopping journey on search engines (51%) and a third start on social media sites (36%). l Almost 9 in 10 Indian consumers say fiber content is important to their apparel purchase decisions. l Nearly 9 in 10 Indian consumers say they prefer their clothing to be made from cotton
tail and dinner between COTTON USA representatives and the brand and retail heads. Highlights of Consumer Research l The percentage of Indian consumers shopping at organized retail outlets has more than doubled over the past fifteen years.
l Almost 8 in 10 Indian consumers say they are bothered brands and retailers are substituting manmade fibers for cotton in their clothing. l Indian consumers are two to three times as likely to describe cotton apparel as comfortable, hypoallergenic, and durable compared to apparel made from manmade fibers. q
Heart of Sustainability ‘VISION SUSTAINABILITY 2020’ On May 8TH, 2015, Birla Cellulose, Aditya Birla Group’s umbrella brand of their Pulp and Fibre business partnered with Control Union (CU), an international network of inspection operations and certifications with dedicated laboratories to focus on ‘Vision Sustainability 2020’. The one day event on sustainability was held on May 8th, 2015 at Hotel Velan Tirupur, Tamil Nadu. With environment pollution at its peak in Tirupur, the Vision Sustainability 2020 seminar held even more importance than before as it brought sustainability awareness across the entire textile value chain. The event gathered eminent speakers from the industry who presented on Product, challenges for textile processing towards sustainability, sustainable clothing and the industrial growth. The full day event ended with a welcoming note from Dr. Binay Kumar Chaudhary from Control Union, taking about CU’s certifiactions, inspection operations for a sustainable textile industry. It was followed by different Sustainability initiatives by companies who consider sustainability as an important part of their company structure. The focus of this event was Sustainable Clothing and the challenges faced. Birla Cellulose is taking initiative with Control Union to focus on every part of the textile value chain. Taking this opportunity, Mr. Rohan Batra, Special Projects presented on ‘Heart of Sustainability and its execution’ at Birla Cellulose. Mr. Batra highlighted the aspect of Sustainability being thought even while designing the brand logo of Birla Cellulose. “The circle signifies the cycle of “nature & sustainability” and floating leaves symbolizes “comfort and lightness”. The Leaves fall & grow all over again, they are a renewable resource of nature. Birla Cellulose is much like these leaves and is made from the same trees” stated Mr. Batra. Mr Rohan , Birla Cellulose , Special Projects presenting sustainability at Birla Cellulose
June 2015 www.textilevaluechain.com
Mr Alakan K , Pallavaa Group talking about Birla Spunshades
He spoke at length about Sustainability explaining the efforts at Birla Cellulose right from seeding to pulping, to processing and manufacturing. He spoke about the endeavours of the Pulp and Fibre business of the Aditya Birla Group and their vision to become the industry leader by 2017 for sustainable business practices across its global operations. “Birla Cellulose leadership in creating awareness and best practices in sustainability has progressed with leading brands. Viscose is uniquely placed amongst the category of fibres - it is a manmade fibre and yet is natural. It brings benefits of both worlds, being made from a natural and renewable resource like wood pulp coupled with engineered precision of manmade fibres. It is one of the most sustainable in terms of raw material, life cycle assessments (LCA) and eco friendliness of the product.” averts Mr. Batra Going forward he spoke about the responsible wood sourcing policy and explained how Birla Cellulose strictly adheres to all environment laws and regulations applied by respective countries
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for wood sources “Our key raw material, wood pulp is sourced through a responsible wood sourcing policy which takes care of high conservation forest, bio diversity and more is planted than cut. The plantations in India save land 6-7 times and saves water by 3-4 times in comparison to cotton” he explained “With the view to lead innovation, the business has invested in R&D across the entire chain of production. Grasim Forest Research Institute for plantation research, Pulp Research Institute at Dominova, Sweden for pulp research, Birla Research Institute and Aditya Birla Science and Technology Centre (ABSTC) for fibre research, pilot plant for fibre innovation and the Textile Research and Development Centre (TRADC) for fibre to fashion, has been set up with an aggregate investment of over Rs.100 Crores” states Mr Batra He further went on to highlight “Studies on LCA of viscose from cradle to factory gate have been conducted by us through International Agencies, across our various products and plants. The findings show viscose in a better light compared to most other fibres in sustainability credentials. The fibre being eco friendly and bio-degradable has the highly acclaimed Oeko-Tex 100 Certificate which states it as being safe on a baby skin. As a business, we are taking steps to support the value chain in creating a sustainable process and also educating them on sustainability and traceability programs which are led by global brands. With this awareness creation and grass root level collaboration we see that the good ben-
First International GOTS Conference Highly Successful Event congregated whole organic textile supply chain under one roof and forged new partnerships for long term success. The flagship event by GOTS in Mumbai, India on 22nd May, 2015 was attended by more than 250 delegates from 12 countries including international Brands & Retailers, Indian brands and exporters from the Indian subcontinent, Buying Agents, Manufacturers of Textiles and Additives (dyes, chemicals, enzymes), Certification Bodies, Testing Laboratories, Trade Associations, NGOs, Academics, Media, Consultants, etc. The theme of the conference was – Strong Partnerships for Success. The congregation initiated new partnerships and valuable discussions. India is the country with the highest number of GOTS certified facilities worldwide. Today, out of the more than 3,600 facilities GOTS certified worldwide, more than 1,300 are in this country.
efits of viscose are enjoyed by consumers and truly appreciated the value chain”. He spoke on the new initiative of LIVA Accredited Partner Forum (LAPF) taken in conjunction with value chain players. LAPF is a community of Accredited Partners (Spinners, Fabricators & Processors) who work closely with Birla Cellulose to improve on innovation, quality, technology and sustainability and deliver great quality sustainable products to buyers. Birla Cellulose doesn’t stop their sustainable efforts at processing and manufacturing level. They go much beyond it and consider it their social responsibility to actively contribute to the social and economic development of the communities in which they operate. In doing so they are building a better, sustainable way of life for the weaker sections of society and raise the country’s human development index. In front of a strong 200 delegates, Pallava spokesperson Mr. Alakan talked about Birla Spunshades that are currently being spun keeping sustainability as the heart behind this dyeing process. Mr Alakan K , Pallavaa Group talking about Birla Spunshades Sustainability is all about meeting present needs without compromising the ability of future generations to meet their own needs. It is heartening to know that Birla Cellulose works towards this goal at every step of their existence. Mr. Batra ended by commenting ‘Birla Cellulose is your partner for sustainable business” q
fashionable, fitting, and colourful. Its sustainable production must become part of the product identity”. Session 1 “Storytelling: Brands’ and Retailers’ Business Case for Sustainability through GOTS” was moderated by Claudia Kersten, GOTS Marketing Director. In her input presentation she discussed ‘The Business Case for Sustainability’ and linked Sustainability based textile standards to competitive strategies using the example of GOTS. She stressed that brands should label GOTS on their products instead of using self-claims. Dr. Ulrich Hofmann, Brands Fashion GmbH, Germany, Speaking about the expectations from GOTS, he said that there should be improved traceability of supply chain starting with organic cotton farming and the need to increase organic cotton supply. Shishir Goenka, Fusion Clothing Co., India in his presentation spoke about the journey of FCC with GOTS and the benefits that accrued to them like increased work environment safety, increased workers morale, improvement in company’s image. Charline Ducas, C&A Europe, connected with the
The ‘1st International GOTS Conference’ was organized by GOTS in The Lalit, Sahar, Mumbai, India on 22nd May 2015. In the inaugural session, Herbert Ladwig, GOTS Managing Director, expressed his happiness on the DGFT notification in first week of May 2015 explicitly excluding organic textiles from the new procedures for export of organic product and also appreciated DGFT and Ministry of Commerce, Govt of India for this industry friendly move. Sharing his dream of a New Concept of Quality, he said, “If ecological civilization and thus sustainable production has to become main stream, a fundamental change of the concept of good product quality is necessary. The perception of good quality must be transformed into a holistic one, where a product not produced in a sustainable way, is considered bad quality even if it is
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June 2015
by formally accepting GOTS for sale of textiles labelled as organic via its policy memorandum dated May 2011”. Prabha suggested that standards offer easy harmonization and therefore decrease cost of goods by reducing burden of multiple compliances. She further stressed on credibility of both voluntary and statutory standards. Siddhartha raised some strategic questions to the elite group in his turn, like legitimizing private mode of governance in areas of public interest. He also questioned if state system procedures were heavy and private governing procedures lighter.
audience through a pre-recorded presentation that described the journey and commitment of C&A towards eco-friendly sustainable production of garments. Ducas also spoke about C&A’s recently launched baby line with GOTS Label in retail. Session 2 was titled “Going for GOTS” and was moderated by Marcus Bruegel, GOTS Technical Director. Dr. Binay Kumar Choudhury, General Manager, Control Union Inspections and Certifications India Pvt Ltd and Member of GOTS Certifiers’ Council, gave the first presentation on ‘Audit Checklist and Methods: Ecological and Social Compliance’. He spoke about how an audit checklist is prepared and methods of auditing, the challenges and opportunities that auditing faces today and the need for ecological and social auditing. Rahul Bhajekar, Technical Committee, GOTS and General Manager, Hermes Eco Laboratories, India next spoke about ‘Risk Management in Chemical Use and Testing’. He gave details about technical requirements in GOTS, testing procedures, chemical parameters considered in assessment and testing of dyes and chemicals. Marcus Bruegel made a presentation on ‘Labelling Organic Textiles- Legal Conditions and GOTS Requirements’. He gave details about the legal basis existing in the EU, USA and in India on the labelling of ‘organic fibres and textiles’. He then spoke about the applicable certifications to enable “organic product” claims for textiles. Session 3 was a panel discussion on ‘Sustainability Standards: National or International? -The Role of International Voluntary Sustainability Standards in Relation to National Statutory Compulsory Sustainability Standards’. This panel was moderated by Arvind Sinha, Business Advisors Group, India. The participating Panel Members were Mathieu Lamolle, International Trade Centre (ITC), Switzerland (via video message presentation), Herbert Ladwig, GOTS, Germany, Prabha Nagarajan, Textile Exchange, India, and Siddhartha Rajagopal, The Cotton Textiles Export Promotion Council (TEXPROCIL), India. Opening remarks by Sinha were followed by the video message by Lamolle. He said, “Development of national statutory standards in addition to the existing international sustainability standards could easily create obstacles to trade. International standards do encompass a global perspective and are developed in the view of making international supply chains more efficient”. Ladwig opined that standards should be voluntary; however the governments can adopt and enforce private standards, as USDA has set an example
June 2015 www.textilevaluechain.com
The final session 4 was a Panel Discussion on ‘Supply Chain: Challenges and Opportunities with GOTS’. Session moderator Ullhas Nimkar, NimkarTek Technical Services Pvt Ltd, drove the discussions forward with his insightful questions for the panelists, coming from all areas of the textile chain including laboratory and certifiers. The Panelists were Amit Shah, Spectrum International Pvt Ltd, India (representing farming & ginning), A Narayanasamy, Armstrong Spinning Mills (P) Ltd, India (spinning, weaving, knitting), Dr. Dileep Wakankar, Archroma India Pvt Ltd, India (dyes and chemicals); GP Kanchi, Mandhana Industries Pvt Ltd, India (wet processing), Dr. BD Ginde, Texan Laboratories Pvt Ltd, India (laboratory/ testing), Ehsanul Karim Kaiser, Esquire Group (Textile Division), Bangladesh (garmenting) and Vincent Duret, Ecocert Greenlife SAS, France (certification body). Nimkar stressed that sustainability is now a necessity and also enlightened about benefits for textile industry to change over from conventional to organic. All three pillars of sustainability, namely economic, social and environmental were discussed at length. Each panelist shared his views on price premium of sustainable textiles from his field, Child labour, worker safety; Training & awareness were discussed, with focus on enhanced fire safety guidelines in GOTS Version 4.0 as well as issues related to toxicity and harmful substances in supply chain, especially in dyes and chemicals. Not rather surprising but always worth to mention that again it became very clear that sustainability is a necessity, especially to change over from conventional to organic. Furthermore the price premium of sustainable textiles can hardly be argued away but the emphasis must be on the additional value and benefit for sellers and buyers. The event got fabulous feedback from the attendees for quality of sessions, networking opportunities and eminence of delegates. Please find quotes with feedback on our website. ABOUT GOTS: GOTS is the stringent voluntary global standard for the entire post-harvest processing (including spinning, knitting, weaving, dyeing and manufacturing) of apparel and home textiles made with organic fiber (such as organic cotton and organic wool), and includes both environmental and social criteria. Key provisions include a ban on the use of genetically modified organisms (GMOs), highly hazardous chemicals (such as azo dyes and formaldehyde), and child labor, while requiring strong social compliance management systems and strict waste water treatment practices. GOTS was developed by leading international standard setters - Organic Trade Association (U.S.), Japan Organic Cotton Association, International Association Natural Textile Industry (Germany), and Soil Association (UK) - in order to define globally-recognized requirements that ensure the organic status of textiles. For more information on the Global Organic Textile Standard, please see www.global-standard.org. q
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COTTON REPORT
Mr. Manish Daga Textile Technologiest
INDIA Arrivals: (as on date: 02-06-2015) State wise 2013-14 2014-15 Arrival (Lac bales) (Lac bales) Punjab 22.31 11.71 Haryana 23.66 20.25 Rajasthan 13.97 16.63 Gujarat Maharashtra M. P. Telangana A. P. Karnataka Orissa Other Total
108.85 95.23 76.79 70.32 18.88 16.93 02.72 56.27
76.89 26.27 23.36 30.15
4.07 3.48 1.85 5.8
373.35 353.04
their stocks sometime in June or July, when monsoon arrives as bales would regain moisture then. The domestic textile industry is primarily cotton based, with cotton accounting for nearly 54 % of the total fibre consumption in 2014. However, the industry is facing challenges like price fluctuation and inconsistent quality of indigenous cotton. The demand can be met only through production of high-quality cotton inside the country. Further, the domestic textile and apparel market is now worth more than $100 billion and is still growing at a healthy rate. It has a potential to double the share of exports from the present 5 % to 10 % in the next 10 years. So the need of the hour is to produce good quality cotton at globally competitive price. China, the world’s biggest cotton importer, has been cutting down its cotton import considerably. As a result, Indian cotton export is expected to fall to a 6-year low. The Cotton Advisory Board (CAB) estimates that cotton export will drop to 7 million bales by September 30 from 11.79 million bales in the same corresponding period a year earlier, a drop of over 40 %. Cotton shipments from India have been recorded at around 5 million bales this season.
Weather:
Cotton Corporation of India (CCI)
The southwest monsoon season rains (June to September), which account for over 70 % of India’s annual rainfall, are projected to be below normal for a second straight year. The Indian Meteorological Department (IMD) believes the current weak El Nino conditions prevailing over the Pacific Ocean are likely to continue during the southwest monsoon season, thereby leading to a sub-normal rainfall in the country.
The government will likely incur record losses of around Rs.2,500 crore on its cotton procurement operations, aimed at preventing distress sales by farmers, in the current marketing year through September, according to textile minister Santosh Kumar Gangwar.
However, unlike other agricultural crops, less rainfall is not really bad news for cotton. A below-average monsoon may not hurt its output, as cotton is more resilient than most rain-dependent crops. In fact, experts point out that a poor monsoon normally tends to benefit cotton, as it is a desert crop. Farmers groups feel that the cotton area may not shrink during the 2015-16 season, as land conditioning has begun in many of the cotton producing states. The good news for India is that cotton prices have started bouncing back recently and, therefore, there are hopes that the reduction in planting area may not exceed 10 %. Domestic Market Summary: Steady demand from domestic mills helped prices trade higher against tight availability in the market yards. Most of the Ginners and even the Government Agencies are holding onto their stocks at the moment as moisture content in cotton bales has reduced substantially, resulting in weight loss of the bales due to rising temperature throughout the country. They are expected to release
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The state-run Cotton Corporation Of India (CCI) procures the fibre from farmers at minimum support prices (MSPs) and sells the stocks later in the market. Any losses out of the procurement operation are reimbursed by the government. The losses by CCI would mount this marketing year, as the agency has procured 8.7 million bales of cotton so far in 2014-15, just a tad lower than the record procurement of 8.9 million bales in 2008-09. Moreover, cotton prices had remained subdued for a long time this year, thanks to poor demand for both the fibre and yarn from China and plentiful supplies. Out of the procured stocks, the CCI has sold almost 1.2 million bales of cotton so far, textile secretary Sanjay Kumar Panda said. CCI is selling 70,000-75,000 bales of cotton on a daily basis, said a government official. One bale equals 170 kg. CCI started offloading substantial stocks since April after the industry had complained to the textile ministry of an artificial shortage in the market created by the state-run procurement agency. Refuting the allegations, CCI chairman BK Mishra earlier said the country was expecting a bumper harvest of 39 million bales in 2014-15, way above the requirements by textile mills, especially when export demand remained
www.textilevaluechain.com
June 2015
tepid.
policy implications in the United States.
Although the state-run Cotton Advisory Board recently revised down the country’s cotton production forecast to 39 million bales for 2014-15 from the previous estimate of 40 million bales, citing unseasonal rains, output would still far exceed domestic consumption. The CAB has also projected cotton exports to 7 million bales this year, compared with 11.79 million bales in 2013-14.
Important Reports:
Yarn Poor demand in cotton yarn from domestic and overseas buyers has resulted in inventory built up leading to financial crunch in the industry, said a spinning mill owner. Government’s decision to direct state authorities to close down textile units in various states on the grounds of releasing hazardous waste to nearby water sources, is impacting the industry. Demand in yarn has slowed down. Grey markets have large inventory as printing process has slowed down, which would halt arrivals of finished product in market yards, eventually leading to tight liquidity on the whole. International Market: Cotton exports from India are expected to decline by 29 % to 7 million bales (170 kg each) in the current crop year that ends in September. Market sources indicated that exports have slowed down due to higher world stockpiles, and a sharp decline in demand from China. Though, China has retained its spot as the largest importer of Indian cotton over the last 3 years. India exported cotton worth $1,912.95 million to China in 2013-14, exports to China in the previous year in 2012-13 were $2,237.38 million. Bangladesh purchasing cotton worth $510.26 million in 2014-15 till February, exports from India were considerably lower from 2013-14 of $698.88 million. China: As per fresh rumors in the markets, Chinese government has plans to auction around 1 million MTs reserve cotton during June, July and August this year. It plans to sell 300,000 MTs of 2011 crop domestic cotton at 13,200/Mt. 400,000 Mts of 2012 crop domestic cotton at 14,200/Mt. 300,000 Mts of old crop import cotton at 15,000/Mt. These prices are based on standard 328 quality, price of each lot will depend on premium/discount based on the re-classing result. U.S.: The USDA says China had more than 60 million 480-pound bales of cotton in storage before it harvested or imported the first bale of cotton last year. That’s almost twice as much cotton as Chinese mills use each year and almost four times as much cotton as the United States produced in 2014. China has finally changed its policy, so stocks probably will not continue to build. When and how China chooses to dispose of its huge stockpiles has incredibly important implications for world cotton markets. If, for example, China chooses to sell even a modest share of those stocks to its mills each year, it will reduce the demand for cotton imports from the United States and other countries. Concern about this possibility is putting downward pressure on cotton prices. This obviously has implications for U.S. cotton producers, but it also could be important to taxpayers. Although the new farm bill makes many changes in U.S. cotton policy, it retains a program that makes payments when prices fall below a trigger level; that level was breached in late 2014. The consequences are not nearly as important as they were at the start of the Civil War, but foreign cotton stocks once again have
June 2015 www.textilevaluechain.com
USDA: ICE cotton futures rose to their highest level in nearly two weeks on Friday after a US Department of Agriculture (USDA) report showed strong export sales last week, but prices pared gains later in the session. “Now, we’re exceeding USDA projections pretty good,” said Michael Quinn, president and chief executive officer of Carolinas Cotton Growers Co-operative, noting that the USDA would likely have to lower its forecast for year-end US inventories as a result of the strong export sales in recent weeks. Cotton contracts for July settled up by 0.02 cent on Friday, a 0.03 percent gain, to 64.35 cents per pound. It traded within a range of 64.27 and 66.59 cents a pound, the highest level since May 18. Net export sales for the week ended May 21 were 117,500 bales, up 98 percent from the prior week, according to USDA data released Friday. Investor Dennis Gartman wrote in his daily Gartman Letter on Thursday that cotton “has found its way back to our radar” and “we are turning bullish,” statements that traders said contributed to some new speculator buying over the past two days. Gartman said his target is for December cotton futures to rise to 80-85 cents a lb “over the course of the next several months.” December cotton closed Friday down 0.6 percent at 64.64 cents a lb. December cotton’s premium to July cotton fell to 0.29 cent a lb, down from 0.73 cent the prior session. Total futures market volume rose by 33,587 to 59,436 lots. Data showed total open interest gained 530 to 188,791 contracts in the previous session. Certificated cotton stocks deliverable as of May 28 totaled 124,606 480-lb bales, up from 122,220 in the previous session. The dollar index was down 0.11 percent. The Thomson Reuters CoreCommodity CRB Index, which tracks 19 commodities, was up 1.09 percent. The Relative Strength Index in the most-active contract rose to 47.767. ICAC: In 2011/12, Chinese imports more than doubled from the previous season to 5.3 million tons and surpassed the total volume of imports by the rest of world, which reached only 4.4 million tons. However, in the following seasons, Chinese imports declined while imports outside of China have steadily grown. In 2014/15, imports outside of China are likely to increase 6% to 5.9 million tons, but will not offset the 45%decline in Chinese imports to 1.6 million tons. As a results world imports are projected down 12% to 7.5million tons in 2014/15. However, in 2015/16 world cotton imports may recover modestly, increasing 2% to7.7 million tons with imports outside of China rising by 3% to 6.1 million tons. Bangladesh, Vietnam and Indonesia are expected to be the three largest importers outside of China in 2015/16 due to the continued growth in their spinning sectors that rely primarily on imported cotton. Bangladesh’s imports are forecast at just under 1 million tons in 2014/15 and are expected to remain stable in 2015/16. Vietnam’s imports are projected up 6% to 927,000 tons in 2015/16 and Indonesia’s imports up 4% to nearly 800,000 tons. U.S. exports which experienced good demand for much of 2014/15, are expected to remain stable in 2015/16 at 2.3 million tons. On the other hand, India’s exports are projected down 50% in 2014/15 to 1 million tons, but could recover partially in 2015/16 to 1.2 million tons. World cotton area is forecast down 7% to 31.3 million hectares
39
in 2015/16 due to low prices in 2014/15 and as a result, world cotton production is projected down 9% to 23.9 million tons. The announcement of a lower subsidy for 2015 in China is expected to lead to a 12% decrease in area to 3.8 million hectares. Production in China could fall to 5.4 million tons in 2015/16. Area in India reached a record 12.3 million hectares in 2014/15, but will likely decrease 5% to 11.6 million hectares in 2015/16. Applying the average yield in the last three years would result in a 2% decline in production to 6.4 million tons. Area in the United States is forecast to fall 15% to 3.3 million hectares due to low international prices and adverse weather conditions. Assuming a yield of 912 kg/ha, production in the United States is projected down 14% to 3 million tons. World cotton consumption increased 3% in 2014/15 to 24.3 million tons and is projected to grow another 2% in 2015/16 to 24.9 million tons. Domestic cotton prices in China fell from an average of 139 cents/lb in 2013/14 to just under 100 cents/lb in the first five months of 2015 due to the ending of China’s reserve policy and a shift toward a more market-oriented policy. Assuming prices remain around the same level in 2015/16, cotton consumption is likely to remain stable at 7.7 million tons in 2015/16. Instead, consumption is expected continue growing in nearby countries. Consumption in India, the second largest consumer of cotton lint, is projected up 3% to 5.4 million tons in 2015/16. Despite strong competition from yarn imports, Pakistan’s consumption is expected to grow 3% to 2.6 million tons in 2015/16. World ending stocks are forecast to decrease for the first time since 2010/11, falling 5% to 20.8 million tons in 2015/16. Although China’s ending stocks are projected down 6% to 11.8 million tons, it would still hold 56% of the world’s stocks at the end of 2015/16. After increasing 19% in 2014/15 to 9.4 million tons, ending stocks held outside of China are expected to decline 3% to 9.1 million tons in 2015/16. Cotton Council India (CCI): Cotton Council International (CCI) is all set to launch its 25-year old flagship brand, Cotton USA in India. The brand promotes US cotton fiber and manufactured cotton products in more than 50 countries globally. Cotton USA trademark promises to deliver: purity, quality, and responsibility. In a competitive market, people need a reason to choose one product over others. The Indian textile industry is primarily cotton focused, with cotton accounting for nearly 54 percent of total fibre consumption in 2014. However, the industry has inherent challenges like cotton price fluctuation, inconsistent quality of indigenous cotton and over-dependence on monsoons. In order to meet the demand, there is a requirement of high quality cotton in the country. David B. Collins, Cotton Council International Senior Advisor says, “The Indian textile and apparel market is now more than US$100 billion and growing at a healthy rate, and it has potential to double its export share from present 5% to 10% in next 10 year. We see a huge potential in this market and hence bring the best quality cotton to the Indian consumers.” Renu Aggarwal, India Representative for Cotton Council International says, “Consumers are well aware and conscious about what they are wearing and are looking beyond just the end product; they want superior quality fabric assurance. U.S. cotton is seen by many as the best in the world, so when this premier cotton is
40
combined with prestigious product developers, the result is truly top-of-the line, the best of the best.” She further added, “Premiumisation is a well established term in India and is happening across categories. The textile industry is also catching up by using premium quality – raw material, fabrics & innovation to make quality products in the country.” Textile Association (INDIA): Cotton growers in Vidarbha may have to face another year of recession as China, the major consumer of Indian cotton, plans to keep imports of the commodity under control, said trade representatives from this country attending the Textile Association-India (TAI) conference in the city. Chinese demand is an important factor for determining market prices of raw cotton and lint. Due to a fall in Chinese demand, cotton prices have touched the minimum support price of Rs4050 a quintal in India, bringing tough times for Vidarbha farmers. Representatives of Hurai Information, a textile consultancy firm from Hangzhou in China, told TOI that their government is not keen to release cotton import quotas beyond 89,4000 metric tons committed under WTO agreement. This will keep the imports from India down. “The Chinese government wants to promote the domestic cotton. Moreover, the focus is on chemical textile industry rather than cotton. As a result, cotton textile business has seen a slump in China too,” said a representative from Hurai. Back in India, stakeholders in textile business say the industry is feeling the heat of falling crude prices. Though it may have been beneficial for the domestic economy, it has led to an adverse impact on the textile industry, said Arvind Sinha, president of TAI. The fall in crude prices has hampered the economy in countries like Russia and Venezuela, which make major export market for Indian apparel industry. The middle-east countries are also in a cautious mode apprehending a slump, with the demand already low in the US, said Sinha. There has been a close to 30% slide in the price of fibre and cotton prices are at an all-time low. The next quarter release of garments may see a cheaper range being launched. As against $50 shirts, the price range may be set around $20, said Sinha. “But at the same time there has been no cut in capacity utilization as reducing or shutting down operations can mean more losses for the units. However, the recession can be taken as an opportunity by coming up with innovations and value addition in products,” said Sinha. Union transport and shipping minister Nitin Gadkari said the Centre has cleared widening of the Nagpur-Jabalpur highway but forest department officials deliberately sent the file back to the government. This can cause further delay as the whole process will have to be followed again. However, the issue will be sorted out soon as a joint meeting to be attended by him, union minister for forest and environment Prakash Javadekar and state’s chief minister Devendra Fadnavis has been planned on Sunday, said Gadkari. Earlier, at the inaugural session of the TAI conference, Gadkari said the government is planning to develop inland waterways which can be used for transport of cotton. He said a port will be developed on the banks of Godavari River in Nanded, which can eventually transport cotton in smaller vessels to the textile industry hubs in South India. Transporting by water can bring down the cost by almost 75%, he said. Indian Cotton Federation (ICF): According to an Indian Cotton Federation (ICF) report for the fortnight ended May 15, 2015, as per trade sources, approximately 3.45 crore cotton bales have been pressed till now.
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June 2015
Quoting newspaper reports, ICF said it expects that in states like Gujarat and Maharashtra, farmers may shift from cotton to pulses and groundnut as they find cotton farming unviable due to untimely rains and lower than MSP prices. Again quoting market sources, the report added that CCI has marketed 12 lakh bales through auction out of their stock of 86 lakh bales, which also includes 4.5 lakh bales of the Maharashtra Cotton Federation. Cotton prices were on steady tone with an average demand from local mills. Since cotton is available price parity may be maintained subject to the smooth release of reserve stock by CCI and Federations. USDA officials met ICF and SIMA office bearers to discuss current US, global and Indian cotton scenario on May 20, 2015 as part of their visit to Coimbatore. Due to lack of export demand and also slow domestic off-take, ICF quoting market experts says the carry over stock may double from the last season’s end stock. Nearly 25 per cent cotton sowing has been completed in North zone, of which in Punjab, it is just around 5 per cent, while in Rajasthan, sowing has just started and in Haryana around 40 per cent sowing has been completed. The price quoted for good quality J-34 R/G in Punjab is Rs 3870 spot per maund while in Haryana it is Rs 3740 spot per maund and in Rajasthan it is quoted at Rs 3770 spot per maund. In Gujarat, approximately 1 crore bales have been pressed till now as per trade sources of which in Saurashtra approximately 64 lakh bales have been pressed while around 26 lakh bales has been pressed in North Gujarat. Approximately 6 lakh bales have been pressed in stations near Bharuch and Surat while in areas surrounding Kutch, 3.5 lakh bales have been pressed and in areas near Himmatnagar, around 1.5 lakh bales have been pressed. Good quality S-6 is selling at Rs 35,800 spot per candy while good quality V-797 R/G is sold at Rs 25,500 spot per candy. Again quoting newspaper reports, ICF said farmers in many areas of Marathwada in Maharashtra may shift from cotton farming to pulses and other cash crops due to heavy losses incurred by them
June 2015 www.textilevaluechain.com
in the last three years. Here good quality 29mm Mech-1 is priced at Rs 35,800 spot per candy. Seed cotton arrivals are almost nil in Madhya Pradesh and farmers are planning for next season and seed demand has started, while a few farmers have also started sowing in irrigated tracts. Mech-1 prices ruled at Rs 36,000 to Rs 36,500 spot per candy. There has been good spells of rain in some pockets of Andhra Pradesh, which is not healthy for various standing agricultural crops. The price of good quality 29mm Bunny in Adilabad was Rs 35,000 spot per candy while good quality 30mm Bunny in Warangal was priced at Rs 35,800 spot per candy while in Guntur 31mm Mcu-5 was sold at Rs 37,00 spot per candy. CCI has been the main buyer all through the season in the cotton belts of Andhra Pradesh and local textile mills have also been actively buying from CCI as they are able to save on freight costs. There has been a good spell of rains in most parts of Karnataka and farmers are waiting for the right time to sow the cotton seeds. Farmers here have been consistently receiving good rates in kappas and are expected to sow more in the upcoming season. As the cottonseed price has been stable at Rs 2000 per quintal, ginners have been procuring good quality 30mm stocked kappas at upto Rs 4600 per quintal. Ginning activities in North Karnataka are expected to stop by the month end while in Raichur and upper Krishna belt it may continue till farmers keep bringing their stocked kappas. Good quality 30mm Bunny of North Karnataka is sold at Rs 36,800 spot per candy while good quality Dch-32 is sold at Rs 50,500 spot per candy. In Raichur 29mm Bunny is sold at Rs 35,800 spot per candy. Cotton Association of India (CAI): The Cotton Association of India (CAI) has revised its cotton crop estimate for the season 2014-15 that begin on October 1, 2014 at 384.50 lakh bales (170kg each) from 391 lakh bales estimated a month ago. CAI’s April estimate is well below Cotton Advisory Board (CAB) India cotton production projection for 2014-15 at 390 lakh bales. The Cotton Association of India (CAI) has pointed out that ex-
41
ports are lagging this year, and there is only a limited demand for Indian cotton. China, which imported more than 20 million bales of raw cotton in 2012-13, is forecast to import only 7.5 million bales this season, the CAI has noted. Government Reports: India’s textile and garment exports registered an almost flat growth at $41.4 billion in 2014-15, against $40.8 billion in the previous fiscal, falling short of this year’s target of $45 billion.The textiles ministry has set an exports target of $47.5 billion for the current fiscal. The government is finalizing the new ambitious national textiles policy that aims to raise exports to $300 billion by 2024-25 and create 35 million jobs.The textiles ministry has sought INR 130 billion for the technology upgradation fund (TUF) scheme for the 12th Five Year Plan (2012-17).Textiles minister Santosh Gangwar has stated that the government has approved 20 textiles parks under the scheme for integrated textiles parks (SITP) in the past one year. These are likely to create 75,000 jobs. Textile policy soon The policy note was circulated, factoring in the recommendations of the Ajay Shankar panel. The committee, which had submitted its report with the textile ministry in late July last year, envisaged annual outbound shipments worth $300 billion by 2024-25. Higher textile exports augur well for the economy as they accounted for 12.6% of the overall exports last fiscal and the sector employs 35 million people, having become the largest employer after agriculture.
MMF REPORT
Govt Releases 2014-15 3rd Advance Estimate For Cotton The government of India has released its 3rd advance estimate for 2014-15 cotton at 35.32 million bales. The estimate is slightly higher than its 2nd advance estimate, but lower than 2013-14 final estimates and higher by 2.85 million bales than the average production of last 5 years. Government’s 2nd advance estimate for 2014-15 was at 35.15 million bales and 2013-14 final final advance estimate was 35.9 million bales. Technical Reports: 1. ICE COTTON Higher Tops Higher Bottoms still in place, remain accumulate in dips market. Short term uptrend intact, but the rally yet to pick up steam. Ice Cotton can test 72-74 areas, which would be key hurdle. Below 62 areas, weakness can creep in again in short term. 57 now remains a key medium to long term bottom. Remains buy for short to medium term above 62 for targets of 74. Key Supports 63.0062.00-59.83-57.30, Key Resistances 68.10-70.30-71.50-73.80. 2. MCX COTTON Short term uptrend intact, remains buy in dips market. Strong upside momentum expected if able to cross 16900. All significant dips can be used to accumulate for targets of 18000 levels in medium term, stop loss below 15200 advisable. 13970 remains a key medium to long term bottom. Key Supports 15900-15600-1543015280, Key Resistances 16900-17250-18300-18700. 3. ACE COTTON Key Supports 33570-32450-31890
q
Key Resistances 35220-36000-36480
Shri R. K. Vij Indorama Synthetics India Ltd.
l At present, the total textile industry is US Dollar 105 Billion out of which domestic accounts for US Dollar 65 Billion and the export is around US Dollar 40 Billion.
required on the part of both the industry and the Government. This looks high and difficult but is not impossible as China has done this in the same manner in the last 10 – 15 years.
l For the last 10 years, we have been regularly failing to achieve our export targets again and again because our concentration remains on cotton. The MMF industry, which could have given much desired growth, was not given its due attention. Now, the time has come that we give due focus on the MMF to attain our exports and desired growth for the Textile Sector.
l After Agriculture, Textile Industry is the largest employer in India. We would like to bring to your kind notice that there are more than 500,000 Power Loom units in India which are also getting affected due to increase in import of fabrics recently as there has been an increase in the cost of raw materials i.e. Polyester Yarns and Fibre. It is pertinent to mention that more than 60% of the fabrics produced by the Power Looms are made of Polyester Yarns and Fibres.
l We feel that the total textile industry in the next 10 years i.e. by 2024-25 can grow @15% to the total around US Dollar 400 Billion from the present around US Dollar 105 Billion. l The domestic market will grow @10% from the present US Dollar 60 Billon to around US Dollar 150 Billion Dollar and that will leave for export around US Dollar 250 Billion which will be matching the China’s export of around US Dollar 275 Dollar currently. l If we bifurcate the synthetic and cotton in our export basket and set the total target of US Dollar 250 Billion, we have to increase our focus on MMF especially the Synthetic Fibre. As our current export in cotton segment is US Dollar 30 to 32 Billion and can grow @10% CAGR to US Dollar 80 Billion only. Therefore, in order to achieve US Dollar 250 Billion, we have to take our MMF export from the present US Dollar 10 Billion to around US Dollar 170 Billion which is equal or more than 30% CAGR. l To achieve the above target, great planning and action are
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l As we have not been able to complete the Doha Round of trade talks, our Textile Industry is to face at duty of 15%-30% in the developed markets of US and E.U. against the Least Developed (LD) countries like Bangladesh, Vietnam, Cambodia, Myanmar are at zero duty. If Doha Round would have been completed, our duty also would have been come down to single digit. l To promote the export of value added garments to the developed markets, we should initiate signing of Free Trade Agreements (FTA) with EU countries which are in discussion for the last 3-4 years and also we should work towards some agreement with US for Garment Export to the US. This will help in increasing garment export to the large markets and also help in increasing jobs in the country. Thus, we will be able to achieve our ambitious target of US Dollar 250-300 Billion of Textile exports in next 15 years and make our ‘MAKE IN INDIA’ initiative a reality. q
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June 2015
SHOW CALENDER
22 30- 1st 9-11 2-5 10-12
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Natural Fibre Conclave Place : Coimbatore/ Tamilnadu info: www.citiindia.com
5-6
Screen Print Vietnam 2015 Place : Vietnam , info : www.screenprintvietnam. com
10-11 Turkish Nonwovens Symposium Place : Istanbul, info: www.edana.org
August 2015
Knit Show Place : Tirupur/ Tamilnadu, info: www.knitshow.in
September 2015 Dhaka International Yarn & Fabric Show Place : Dhaka/ Bangladesh, info: www.cems-yarnandfabric.com/ difs/ Yarnex / Texindia Place : Tirupur/ Tamilnadu, info: www.yarnex.in , www.texindiafair.com
15-17 Premier Vision Show Place : Paris/ France info: www.premiervision.com 23-25 OUTLOOK 2015 Place : Athens/ Greece, info : www.edana.org
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11-12 International Textile Fair Place : Dubai/ UAE, info: www.internationaltextilefair.com
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Nonwovens Innovation Academy Place : Leeds/ UK ; info: www.edana.org
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December 2015
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Feb 2016
TEMTECH Place: Bhilwara/ Rajasthan, info: www.temtech.in
March 2016
Colombo International Yarn & Fabric Show Place : Colombo/ Sri Lanka, info: http://www.cems-yarnandfabric. com/cifs/
16-18 INDIATEX Place : Mumbai/ India, info: www.textileassociationindia.com 3-8
December 2016
INDIA ITME 2016 Place: Mumbai/ India, info: www.india-itme.com
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