JANUARY 2015 ISSUE

Page 1

Volume 3 | Issue 1 TEXTILE VALUE CHAIN

www.textilevaluechain.com

ISSN NO.: 2278-8972 | RNI No.: MAHENG / 2012 / 43707 JANUARY - 2015 | Volume 3 | Issue 1 | Pages 56

EU- GSP Scheme & impact / Challenges for EU companies for Technical Textile/ Roadmap to Exporter

JANUARY - 2015

Cotton Report / Fabric Report Fashion Forecast / New Appointments Show Calendar Trade Show / Conference Report

Cover Story : Pre Budget Memorandum ISA TEXPROCIL Suggestions

SIMA FAITMA TMMA SRTEPC

Comfort is: A solution that allows you to settle back cosily. Count on a leading supplier

The complete package for your success

Rieter is a leading supplier in the global market for complete spinning plants and components and is the only partner for all 4 end spinning processes. All systems, machinery and technology components for the processing of natural, manmade and blended fibres ensure that customers enjoy the highest level of comfort.

Settle back and relax – Rieter offers all 4 end spinning systems and advises you competently, from the very first customer consultation through to the operation of your spinning facility, safeguarding your investment in terms of economy and targeted market impact. Enjoy the comfort of partnership with Rieter.

More under www.rieter.com

The Comfort of Competence

www.textilevaluechain.com

:&&3;< +002< #=5 #=* > ) . 5 6 + < - . - + < )% 6 '$$ $5?" 4 @ ?# 6 == 6 =A5$ ''5' @ ?# 6 == 6 =A5? 999$ B & 7 4 @ ?# 6 == 6 =A5? 9$=( TEXTILE VALUE CHAIN | Jan 2015 <% 4 C " %

! " #$ % % ! " & % #'( % )! #*$ % " + , &) - " . % & . / +0 + 1

& & & " 2 & % 0 ) 3 2 % 4 5$ 6#$$ % #$ $$$ % ! %)% * - % 7 %)% #$ - " # 0 - % 0 ! 6 # - %! 8 69 -

1

www.textilevaluechain.com

EDITORIAL '' There are many paths to the top of the mountain, but the view is always the same''

What the organisations of the industry look out for the forthcoming Budget? By the time this issue falls in the hands of readers, the pre-Budget season must have come to and end. Although all stakeholders are now thirsty of the Budget, analysts, whether in the field or finance or textiles and our readers must be keenly interested to know the demands made by various organizations of the textile industry. The pre-Budget demands do help analysts to appreciate provisions made in the Budget. Hence, Textile Value Chain has decided to present in a comprehensive manner Pre-Budget Memoranda of leading textile organizations, whom we profusely thank for their co-operation and support. A host of textile industry organisations have pleaded for reduction in excise duty on man-made fibres to 6% from 12%. To bring about revenue neutrality, on reducing excise duty on man-made fibres to 6%, some organisation have recommended a mandatory duty of 2% on fibre forward chain including cotton yarn, cotton fabrics, etc along with man-made fibre textiles. Really speaking, there is no justification for imposing higher excise duty on MMF and MMF textiles, particularly when it is a tenet of the principles of taxation that the government should not promote or discourage consumption of same or similar products. st However, once the GST is introduced from 1 April, 2016, there will be the same rate of duty on Cotton and MMF streams of production.

zero duty to super-high-speed shuttleless looms. This may be found irksome by the textile industry. The textile industry looks forward to zero customs-duty regime for all Textile Machinery other than ring frames. If the textile industry is to emerge as the winner in the international race for textiles and garments, it must be encouraged to install state-of-the-art machinery and for this purpose, zero duty window must be opened. To encourage the textile manufacturers to diversity into the manufacture of weaving and processing machinery, government could consider other avenues, like soft loans, liberal TUFS support, assured supply of power at concessional rate etc .

TVC Monthly Issue From Now ... !

With the encouragement, support and appreciation received from our subscribers, advertisers, wellwishers and authors of articles, we are glad to announce that with effect from January 2015, our magazine will be published every month, instead of quarterly as at present. We are planning to introduce several new features in the monthly format for the benefit of our readers, and look forward to receiving the support of all of you with greater zeal.

Like all segments of the industry, Textile Machinery Manufacturers are also keen to guard their turf. One recommendation of theirs is to restrict the benefit of

Shri V.Y. Tamhane Editorial Advisor

2

TEXTILE VALUE CHAIN | Jan 2015

www.textilevaluechain.com

Regd. Off.: 191/ 5-C, Mittal Ind. Estate, Andheri (E), Mumbai-400 059. Tel.: 2850 3106 /1568 Fax: 2850 0124 Delhi Off.: 520, Krishna Gali, 1st floor, Katra Neel, Chandni Chowk, Delhi-110 006 Tel.: 23934712 / 23951612 / 32600574 Fax : 23965942 Factory.: Raj Rajeshwari Compound, Village Sonale, off Nashik Highway Road., TEXTILE VALUE CHAIN | Jan 2015

Bhiwandi, Dist. Thane (Mah.)

3

www.textilevaluechain.com

In this Issue...

JANUARY 2015 ISSUE EDITORIAL TEAM Editor & Publisher

NEWS

Ms. Jigna Shah Editorial Advisor

Shri V.Y. Tamhane Consulting Editor

Mr. Avinash Mayekar

9 – Government News 10- Corporate News COVER STORY : PRE BUDGET MEMORANDUM

Graphic Designer

Mr. Anant A. Jogale Advertising & Sales

Md. Tanweer

INDUSTRY Mr. Devchand Chheda City Editor - Vyapar ( Janmabhumi Group)

Mr. Manohar Samuel

11- ISA (Indian Spinners Association) 12- TEXPROCIL ( The Cotton Textile Export Promotion Council) 13- SIMA ( South Indian Mills Association) 15- Faitma (Federation of all India Textile Manufacturers Association) 17- TMMA (Textile Machine Manufacturing Association ) 19- SRTEPC ( The Synthetic & Rayon Textiles Export Promotion Council)

Joint President, Birla Cellulose, Grasim Industries

Dr. M. K. Talukdar

ARTICLES

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, CIRCOT

Dr. Rajan Nachane Retired Scientist, CIRCOT

CONSULTANT / ASSOCIATION Mr. Shivram Krishnan

21- New EU GSP Plus scheme of EU & its impact on T&C export of India, by Mr.Raut, Textile Committee

22- HI CAI Heroes of Textile Value Chain, by Shri V.Y. Tamhane 23- Road map to Indian Textile Exports by Mr.AvinashMayekar, Suvin Advisor 30- Challenges and Opportunities facing EU companies in Technical Textiles by Mr.Hendrik van dendek, Gherzi

49- Lean Manufacturing – Keeping Textile Sustainable, by Mr. Harish Chatterjee, Raymond Limited.

SHOW REPORT

26- TEMTECH 2014& HEIMTEXTILE INDIA 2015 27- ITMACH INDIA 2014 31- TECHNOTEX 2015 33- TAG – FICCI 2014 Conference 46- GTTES 2015 36- TAI Mumbai 2014 Conference 37- TECHTEXIL Symposium 2014

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

4

TEXTILE VALUE CHAIN | Jan 2015

MARKET REPORT

40- Cotton Report 43- College- NMIMS 44- Fabric Report 47- New Appointment in the industry 48- Show Calendar 52- Domestic Fashion Forecast – Spring Summer 2015

www.textilevaluechain.com

TEXTILE VALUE CHAIN | Jan 2015

5

www.textilevaluechain.com

6

TEXTILE VALUE CHAIN | Jan 2015

www.textilevaluechain.com

TEXTILE VALUE CHAIN | Jan 2015

7

www.textilevaluechain.com

8

TEXTILE VALUE CHAIN | Jan 2015

www.textilevaluechain.com

News

Goverment News Trade Facilitation Centre The Finance Minister in the Budget 2014-15 announced to set up Trade Facilitation Centre and Crafts Museum with an outlay of Rs.50 crore to develop and promote handloom products and carry forward the rich tradition of handlooms of Varanasi. The State Government has not al setting up Trade Facilitation Centre and Crafts Museum at Varanasi. The Finance Minister in the Budget 2014-15 announced to set up six more Textile mega clusters at Bareily, Lucknow, Surat, Kuttch, Bhagalpur, Mysore and one in Tamil Nadu with an allocation of Rs.200 crore. Varanasi Mega handloom cluster is already under implementation.

ment Scheme + < # ! < ! (ii) Handloom Weavers Comprehensive Welfare Scheme – two components: + < # ! ## to health care facilities + & = > ? > @ jana for life insurance (iii) Yarn Supply Scheme

ferent locations within the country.

Promotion of Muga Silk Muga is wild eco race available only in India inhabitating Brahamputra val q q Q## # & q Q# sam. In order to produce better quality silk and increase the yield, 8 best muga silkworm races have been isolated and assessed by the Central Muga Research Institute, Ladoigarh, Jorhat of the Central Silk Board (CSB).

Under Integrated Handloom Cluster ! < ! $ deri, handloom cluster for its integrated & holistic development was sanctioned. The cluster covered about 5000 handlooms and was developed with Central share of Rs.2.00 crore. Chanderi handloom cluster was implemented by Entre # < # < D < $ Q " < # various interventions like upgradation of existing dye house, setting up common facility centre, design & project development, engagement of designer, exhibitions & buyer seller meets, formation of web portal, skill development & technology up-gradation etc. were implemented.

` # ? of systematic plantation and silkworm seed supply. The Government has taken remedial steps to improve silkworm breed, evolve better host plants along with development of appropriate package of practices through the Central Silk Board (CSB)’s main Research Institute; CMER&TI located at Ladoigarh in Jorhat, Q## " } q # # q X X missioner for Handlooms, Ministry of support to farmers are provided for (i) Textiles is implementing the following Raising muga food plant nursery (ii) schemes for development of handlooms Q and welfare of handloom weavers: # % # #$ Q# sistance for maintenance of existing Q## # Programme # #$ Q# sistance to muga private grainures and (ii) Handloom Weavers’ Comprehen Q## # ~ # sive Welfare Scheme X % # grainures for up-gradation of seed pro(iii) Yarn Supply Scheme and 2013-14, having various components, (iv) Comprehensive Handloom Cluster # # #" duction capacity as well as assistance for strengthening and up-gradation of their ! " Z[\] \^$ D <$ Q # seed infrastructure to the State. sanctioned consolidation of the ChandUnder the Comprehensive Handi # X" = # % # # ! # ' # # > ! $ % # # " " & ' Under Handicrafts, Baba Saheb Hast– Bhadohi (UP) and Srinagar (J&K) are # _ ? # @ ` Q _@ # # > # $ € $ implemented for the development of q ` # $ ! ?? $ Q velopment Commissioner (Handicrafts) Pradesh, Madhya Pradesh, Uttarakhand. Carpet Industry in the State. sanctioned in favour of Bird Charitable # # # ' # Promotion of Chanderi Tex- Trust, Guna. Under this scheme, 436 # Q# tile Industry # # sam. programmes such as skill upgradation & The Government of India has been training design & technical development The Government through Central implementing following schemes in all and by way of distribution of tool kits. Silk Board (CSB) has taken the following over India to promote handloom textile Three Guru Shishya Parampara Train- measures for increasing production of industry including Chanderi – ing Scheme have also been organised muga silk: Q% & # D# # ; !> craftsman Shri Tulsi Ram Koli at ChandProgramme – two components: at Guwahati to coordinate sericulture deeri. Similarly, these artisans are also be+ ; $ ; ; # ing provided with marketing assistance velopment activities with State and other (RRR) Package for handloom = ! > ' #$ > ' $ # Q## D ; " sector Exhibitions and National Level Melas etc. + # being organised on regular basis at difTEXTILE VALUE CHAIN | Jan 2015

9

News

www.textilevaluechain.com

Corporate News SAREES MADE WITH DUPONT™ SORONAŽ FIBER: EXCEPTIONAL SOFTNESS, FLUID DRAPE, LIGHT WEIGHT

furt, Germany. Heimtextil will mark the # # # % }!Q $ global brand for quality U.S. cotton prod X & # % #" }!Q % # q # q serve as an international meeting point \ [[‚#" ƒ ? # for the entire cotton trade at Heimtextil ? # q $ „ q 2015. ester, neoprene rubber fabric, elastic Ly „$ € „$ „$ % }!Q X & # ~ q # ' # textile products that have transformed # ' }"!" ‚# q$ � q contemporary living. and responsibility: a natural ingredient q‚# ~ # }!Q X & # # # $ # # "Q

? $

! „ }!Q $ < the Indian textile market in Sarees at a (CCI), Cotton Incorporated and Supima # # % will provide information about the globber 19, 2014 with a Bollywood celebal cotton market and sourcing, as well as rity as the showstopper. This event will about the marketing and promotional showcase a collection by Vipul Sarees, services that the U.S. cotton industry of% '

fers. Saree segment. This collection, made ex # q % ! „ $ # ; # # $ # # high quality, soft and colorful sarees in # }!Q Chiffon, Georgette, Satin and Crepe cat- marketing and licensing program, which egories. operates globally and offers a wide range of services. CCI’s Sourcing Programsup! „ # ]†‡

q # q # # }!Q$ renewable plant based ingredients by from raw material to the end product, % Zˆ‡ # with a focus on responsible cotton pro‰Q# # % # X q duction and sourcing through participa # ! \ †^ # Š # ŠDQ !‘ " Ethnic wear, I have seen several innovations come to Surat in the last 40 years # q ! „ % q % % ! < # q" Q# # ! „ ! ? $ # ! „ rics to leverage its natural softness and its ability to be processed in gentler con #" # will be thrilled with this exclusive VIPUL ! „ "‹ ! q & " Q Q % $ D $ _ ƒ # #

COTTON USA at Heimtextil 2015: Purity, Quality and Responsibility }!Q # % campaign at the Heimtextil trade show Œ " \^ \†$ Z[\� ˆ"[ Ž[ the Frankfurt Exhibition Center in Frank10

# ? % ! q Π$ ! ` ' Changshan(China), Zermatex (Mexico) andZucchi Group (Italy).

The need for green growth:ATE One of the biggest problems India is facing today is the availability of clean % " Q # q # q 2030 the water supply in India will be # “ # cantly hamper the social & economic q" Q # time, the rapid expansion of cities and industries has rapidly raised the amount % # % " Q � % # % # posal and sanitation facilities have thus become very crucial.

India’s water situation, primarily ? % variability, is quite serious. Our aquifers # q $ % cient safeguards to prevent “water min ‹ % industrial pollution and human runoff. Our growing population and climate change have started to exert pressure on our water supplies. We know that water is critical to life, but there is increasing evidence that water qualityis even more important than we imagined. The effects of polluted water cannot be overempha# ' " < # ? % # in water can affect our hormonal system In addition to the international COTand cause cancer. Unclean water leads to }!Q # <‚# an increase in many infectious diseases. Sourcing Program, the U.S. cotton inQ # # # q # # dustry provides a portfolio of other key faecal contamination of water is leadservices including the Supima licensing ing to malnutrition in children who are programandtrend forecasts and technidrinking such water, even where they are cal support from Cotton Incorporated.Liconsuming enough nutritious food. # # # sight they obtain into consumers, based Q Q" "D"$ # # # # q# developing world-class solutions for many aspects of our water problems. made available to all global partners. We have many smoothly running instalQ ~ $ < % # lations that showcase green technology uct samples from the new collections # # q" ƒ ~ $ QQQ }!Q # # process generates gas, saves energy, resuch as Bassetti (Italy), Caliphil (Tai- duces chemical consumption and greatly % $ ~ < q $ ! reduces sludge. Our screening grit and (Thailand), Graser Exklusive Bettwäsche sludge management solutions from Hu(Germany), Jaspal Home (Thailand), Ka- ber enable sewage treatment plants to work optimally andensure clean and safe ltex Home (Mexico), Kimpeks (Turkey), working conditions for workers at these Š ' ~ = $ & # !% $ plants.

TEXTILE VALUE CHAIN | Jan 2015

www.textilevaluechain.com

COVER STORY

PRE BUDGET MEMORANDUM < % $ % # > & randa in the context of forthcoming Central Budget. > Z[\� \Ž # # # ~ # q % # q D~ # q & # q ~ # # ! Q` q ! ? $ & ! q$ & ## $ % = # # # q # # #" The Textile Industry has always a special place of importance in the national economy inasmuch as it is a net earner of ~ ~ q }! • ^[ $ q# \[ # # # # ' }! • \Z[ " Expert Committee has envisaged a larger role for the textile industry by 2024-25, when it is targeted to earn foreign exchange ~ }! • ][[ # ~ }! • ]�[ " < % #$ # ' industry in the next ten years will be a gigantic US $ 650 billion. This recommendation appears to be the right step in the right $ # ' # ~ # q" The Textile Policy of the Ministry of Textiles is not yet out, but it is expected that the Vision Report of the Expert Commit % ~ X q" Q # # $ # # ## q % # # ]Ž market is facing the problem of cost escalation, which is blunting its competitive strength. China is also reported to enter a q # % q" Q # ~ # % # ~ # #" > # which is a leading exporter of apparels has its own problems. Countries depending on outside sources for yarn or cloth have # # # # " Q # $ Q q # # " Q there is not much encouraging news from E.U. countries, there is no need to take a pessimistic view. The ‘Look East’ Policy of our Government is also fetching encouraging response. > # q ' # ~ # q$ % % # $ # get serious consideration of the Hon’ble Finance Minister for enabling the industry to make stupendous contribution to the national economy.

INDIAN SPINNERS’ ASSOCIATION 1. Removal of 5% Custom Duty & 4% SAD on Man Made Fibres (MMF): There is hardly any import of Man Made Fibre but local # % ` q q # #$ �‡ # q ^‡ !Q % ~ # q # spinners which unnecessarily increases cost for the local spinners and down-stream industry. There is hardly any revenue implication on removal of these duties as imports are negli " % $ # # % &&ƒ Textile industry, from spinning to garments. ; !Q % % ? !Q # # # therefore add to their cost. 2. Reduction in Excise Duty on Man Made Fibres (MMF): Q # # \Z‡ q D~ # q &&ƒ # # ˜ ‚ q " #$ # of MMF become much costlier compared to cotton. This discrimination is hindering the growth of Man Made Textile Industry. Q# q % $ ! $ q &&ƒ †[‡ # % # <

# # ## ][‡" # #? % # $ # necessary to remove the discrimination between MMF and

#" Taking into account the revenue needs, we recommend D~ # q &&ƒ # Ž‡ \Z‡ # # # " ## % made up automatically in next 3-4 years with the growth in consumption of MMF. 3. Optional Excise Duty for all textile products other than MMF: Optional duty regime for excise may kindly be continued until introduction of GST since this has been increasing and felicitating substantial investment and expansion in the textile industry. 4. Removal of Excise Duty on Recycled Polyester Staple Fibre: D~ # q ™ Z‡ # q X!ƒ" D $ q X!ƒ % # % q# ~ D~ # q following reasons: ; q # XD X q q ene Terephthalate) bottles which have already suf D~ # q" < q % TEXTILE VALUE CHAIN | Jan 2015

11

COVER STORY

www.textilevaluechain.com

happens is that the shape of polymer is changed from

# # " # # to manufacture. (b) Recycling of PET bottles is environment-friendly. It

# # % # # ' ous, both for human beings and cattle. Hence, recycling should be promoted. ; q # " q # # # #$ # # manufacture of packaging cloth for cement and fertil ' $ # # % # # #" In view of the above, we request you to kindly restore the exemption of recycled Polyester Staple Fibre.

5. Textile Machinery, Parts & Components: q # \[‡" % $ ## Ž‡ # # q # Š # "�

~ "\Z Z[\Z D \†"]"Z[\Z$ as amended from time to time. The textile industry has been upgrading its manufacturing technology to rise to the international levels, under the scheme of Technology Upgradation of Central Government. Our recommendation is all textile machinery and parts and accessories thereof covered by heading Nos. 8443, 8444, 8445, ˆ^^Ž$ ˆ^^†$ ˆ^^ˆ ˆ^�\ # ` ## q Ž‡ % # ~ # q % propriate procedure.

THE COTTON TEXTILES EXPORT PROMOTION COUNCIL (iv) Exemption Service tax on services rendered abroad

INDIRECT TAXATION CUSTOMS DUTY (i) To Reduce Customs duty on Textile Machinery( other than ring frames) to Zero (ii) Customs duty on parts & components of textile q #

Ž‡ % # # q ƒ used for generating power for captive consumption by Textile Units. (iv) To Exempt imports of Textile Machinery from q ^‡ Q q # # ! _ ~ ! Q q !Q # ~ _Q ; !Q # ; !Q # Z‡ EXCISE DUTY (i) Optional duty for Cotton textiles (ii) To exempt shuttleless looms from Excise duty Q # D~ # q ~ & q$ Spares & Components. # D~ # q ƒ ƒ (v) To extend optional duty to EOUs (vi) Technical textiles : exemption may be extended to Q # $ > # # # ## material for wound and incisions . SERVICE TAX (i) Reduction in Rate and exemption limit of Service ~$ # % \[‡ (ii) Exemption of SEZ units from payment of Service Tax (iii) Credit of Service Tax on maintenance & repair charges 12

TEXTILE VALUE CHAIN | Jan 2015

DIRECT TAXATION # % # ™ ˆ[‡ < ~ Q " # # % \�‡" D~ q # Q textile mills Q q &Q & Q ~ € &Q # ~ < # # ~ # % ! ˆ[<Q < ~ Q " € Q > ? ## # tion should be allowed as deduction while computing Book X # # \\�Œ>"

€ Q ~ # Š Gains arising on Sale of Investments ( as exempted under section 10(38) should be excluded while computing Book X # # \\�Œ>" (iv) Investment allowance to Manufacturing q ! ]Z Q (v) Re-assessment / Reopening of Income Tax cases # Q Small companies with less than Rs. 5 Crores capital should

~ # Q " X # # Q # % # ~ q " TUFS SCHEME It is suggested that the TUFS should be extended during ? Z "Ž"Z[\[ Z†"^"Z[\\ % scheme was suspended . This period may be considered in the old format . It is further proposed to allocate additional

www.textilevaluechain.com

COVER STORY

THE COTTON TEXTILES EXPORT PROMOTION COUNCIL fund of Rs.3000 crores for clearing all pending cases of TUF Scheme including the cases of black out period in addition to the scheduled liabilities for regular TUF scheme. BANKING & FINANCE (i) To Reduce the rate of interest on Rupee Export Credit †‡ D~ < # ; ! ]‡ ~ # < # # # < # Rate Subvention should be extended to the entire Cotton textiles sector . if for some reason or due to budget constraints , if the scheme cannot be extended to the entire cotton textiles sector than atleast it should be extended to Madeups ( Home textiles ) However, if the entire chapter 63 cannot be included then it is proposed to include HS Code 6304 under the Scheme . Further, if the product cannot be included at the 4-digit level then it is proposed to include the following items under the scheme : ITC (HS)

< ! #

63041910

Bed Sheets and Bed Covers of Cotton

63049220

Napkins of cotton not knitted or crocheted Pillowcase & Slip of Cotton not knitted or crocheted Table Cloth & cover of cotton not knitted or crocheted Towel other than terry of cotton not knitted or crocheted

63049230 63049240 63049260

We would request you to kindly take it up with the Ministry of Finance and RBI so that the above HS Codes gets cov ]‡ < # ; ! ! " (iii) To reduce Margin Money for Working Capital > ?# q Z�‡ q funding raw-materials purchases for three months .It is suggested that the period of stock limit be increased to 9 months % q \[‡

POWER SECTOR Considering the acute power shortage prevailing in the Country especially in Tamil Nadu the following support may be provided to the textile sector : € X Z�‡ ! # q % plant including wind mill. € To Permit usage of super kerosene oil for power generation and exempt the same from all central levies . Refund State/Local un-rebated levies/taxes/duties to exporters In order to make export products more competitive, # # # ' ~ # q % ? q ! # ‰ q ~ # # # ~ #‹" Excise and Customs duties are currently refunded through q % ? ! " > # ~ # q the State Governments and local bodies including CST are not refunded to the exporters . provision should be made for refund of all duties /taxes levied by the State Governments and Š # # # ! $_Q $D q ~ $ & ~ $ D q q $ # q # ## % Ž‡ value of textiles . If for some reasons, refunds are not possible $ q # # q ™ Ž‡ exports which can be made transferable and used for payment of duties on imports of any item freely importable. OTHER ISSUES q < # š # # # # # ~ # & ups. (ii) To abolish Hank Yarn obligation (iii) Working Capital Raw-material Textiles mills may be provided with working capital as# # # % †‡ # $ \[‡ margin money and 9 months credit period to create a level q # q q to the farmers.

SIMA- SOUTH INDIA MILLS ASSOCIATION I) Central Excise Cotton & Cotton textiles € Continue optional excise duties for all textiles and clothing products till GST is implemented € D~ # ## # Ž‡ ~ # duty considering the importance given for the power loom sector under TUFS and SITP in the 12th Five Year plan.

< # ~ # D~ }! ÂŽÂ?[ > q Z[Z^ ZÂ? # _ # ! q q & # q ~ #$ q # to be provided to Man-Made Fibre (MMF) in terms of taxation and policy support. By this way, the production and consumption scenario will gradually change towards the global pattern ' # MMF based textile products for export markets as well as domestic market. TEXTILE VALUE CHAIN | Jan 2015

13

COVER STORY

www.textilevaluechain.com

SIMA- SOUTH INDIA MILLS ASSOCIATION ! " #$ ' *+ / 6 6 € < # q = '

q ~ # ~ # # q$ ' # growth that exists in the Man Made Fibre based products # q # % sumption patterns in India and our major importing coun #" Q D~ # q \Z‡ Ž‡ & & ƒ # % % crease in demand and achieve the above targets along-with increased revenue. Further to reinforce our demand for parity in duty structure, we would like to highlight that in our neighboring countries like China, Pakistan, Indonesia, Thailand and Turkey # # & & " Moreover with the increase in Excise duty as per the de # %$ q ' & & ƒ bre industry has come down substantially leading to revenue loss to the government as well. Moreover, the reduction in the duty for raw materials such # X Q$ &D= # % # # � q # " < % $ D~ # q & & ƒ # q Ž‡" Technical Textiles + D~ # q ~ q ~ Q # $ = ' $ > #$ "$ # # ## ing material for wound and incisions.

II)

Customs Duty

€ ! Q q ^‡ !Q % # q # _Q % % # ^‡" $ !Q may be exempted for all the goods which are exempted from _Q Refund of SAD to Manufacturers € The import of raw materials by manufacturers at # ! Q q ^‡ > # # # q$ "_" " #" hand, if the raw materials are imported by Traders, they are !"Q" " # # raw materials to manufacturers. Q# # # # # q ? X q # ƒ ' q against the duty on output, it is therefore requested that similar facility of refund should also be allowed to manufacturers % ' !Q q" ! q !Q # _Q $ !Q q ~ % ! Z‡" 14

TEXTILE VALUE CHAIN | Jan 2015

III)

Service Tax

€ The credit of service tax paid on erection and commissioning charges for wind mill as well as on the repairs and maintenance charges may be permitted to be availed. Service Tax on Man power Services:€ Under the existing provision of the service tax act under reverse charge mechanism, service tax on man power services payment is payable by service receiver if service provider is not corporate. The service provider has to pay Z�‡ # # # †�‡" Q# %$ # % # #" Q % # transport services may be considered.

IV)

Central Sales Tax €

; ! \‡

V) Cotton Price Stabilization Scheme € Consequent to the removal of cotton from Essen # Q ƒ q Z[[†$ # % # ties cover major volume of cotton and speculate the prices. This affects both the farmers and the industry and also often the Cotton Corporation of India. In order to alleviate this $ X ! ' ƒ ! # # †‡ # $ q Z�‡ \[‡ # months to nine months may be recommended. This would # # Z‡ ]‡ % # q fetching substantial revenue and employment generation apart from stability in the prices of cotton, yarn, fabrics, "$ q # ? # ## chain.

VI)

TUF Scheme

+ Q ;#"][[[ # ing all pending cases of TUFS including the cases of blackout period in addition to the scheduled liabilities of regular TUFS.

VII)

Income Tax

+ Q# # # < ~ Q $ % required to show the income on accrual basis irrespective of whether the same is received or not. Whereas such income receivable from Government (like power subsidy other incentives) is sin die, even after 10 years we are not able to collect from the Government in view of paucity of funds. In view of that there should be an exemption for showing of income receivable from Government in the books of account/ alternatively such income should be accounted on cash basis. 80IA Deduction for Power Generating undertaking:+

X & #

www.textilevaluechain.com

COVER STORY

SIMA- SOUTH INDIA MILLS ASSOCIATION eligible for deduction from Gross Total Income as per section ˆ[<Q < ~ Q " Q# # $ it is held that there is no need for notionally carrying forward and setting off the same depreciation and loss (which is al q # # # ## # ## ## in computing the quantum of deduction available under sec ˆ[<Q" Q # # tion already set off in earlier years could not be reduced from # # ˆ[ <Q"

In-spite of the various Higher Court decisions ruling in favour of the assessee on this issue, the department is still disallowing the expenditure of commission payment made to nonresident agents in the Income Tax assessment.

> < ~ Q # # ˆ[<Q � # q # # % ## ## % # ! q # and gains has to be worked out after taking into consideration of the brought forward losses / unabsorbed depreciation of earlier years of windmill unit (power undertaking) in determining the quantum of deduction admissible even though q # # # taking of the assessee.

Investment allowance to Manufacturing company under section 32AC:-

TDS on Commission payment to Non-Resident agents outside India for canvassing of orders of export sales:+ # % ment and the assessee towards tax deduction on commission payments made to non-resident agents towards export sales. Various Supreme Court / High Court / Tribunal have held that commission payments paid in foreign currency to non-resident agents outside India is not liable for Tax deduction under # # # \Â Â? < ~ Q " Period

Basic Excise Duty (BED) %]

Mar 2006 – Nov 2008

8

Z[[ˆ “ ÂŒ Z[[Â

4

Jul 2009 – Feb 2010

8

Mar 2010 – Mar 16, 2012

10

& \†$ Z[\Z % #

12

! ## q # # ! # ## q # to non-resident agents outside India for canvassing of orders of export sales.

This allowance is only applicable to corporate. This ben # ~ ## ## # # % gaged in manufacturing activity. Besides this, the threshold limit of investment may be reduced to Rs.10 crores from Rs.25 # q " # # # # ## ## #"

VIII) Companies Act + ! # % ## ƒ # # ~ # Q " X #

# Q # % # q ~ " + ƒ # # ` # q" ƒ ? # # # # # practically nothing. Fees should be reduced to a reasonable level and should not be considered as revenue producing.

IX)

General

+ # ~ q #

# # # # ' # such other documents may be disposed with in view of nonavailability of these stamps and cost of manufacture of these stamps are more than their face value. + ; # ~ q # may be increased from the exemption limit of Rs.5000.00 to Rs.50,000.00. Stamp duty on physical share transfers could be removed since shares in demat form do not pay stamp duty.

6 * 6 *

76 7 9

1) Excise duty (i) Textiles The present optional scheme of payment of excise duty should continue till the GST is introduced. Under the optional scheme, if the option of exempted route is selected, then no cenvat credit is available. In the case of duty-paid route, the q # Ž # \[[‡ yarn, fabrics, made-ups and ready-made garments. The same q # \[[ ‡ q $ #$ made-ups and garments.

; < ' $ + = ment yarns < ? % q made in the National Fibre Policy prepared by the Ministry of Textiles, in consultation with the concerned Ministries, we # q ~ # q # q # q $ #$ # # # q #

% \[[‡ q $ #$ # # " " Ž‡" TEXTILE VALUE CHAIN | Jan 2015

15

COVER STORY

www.textilevaluechain.com

FAITMA ; < 6+ $ 6+

and equipmentsIt

Excise duty on furnace oil and fuel oil used for captive generation of electricity in textile mills should be abolished, # ` # Z ] \Z Z[\Z D \† ] Z[\Z$ # to time which are reproduced below :

3) Working Capital

“Condition No.2 Where such use is elsewhere than in the factory of production, the exemption shall be allowed if the procedure laid down in the Central Excise (Removal of Goods at concessional Rate of duty for Manufacture of Excisable Goods) Rules, 2001, is followed. Condition No.3 The exemption shall be allowed if it has been proved to # # % ? q ## D~ # Q## # ## er of Central Excise, as the case may be, having jurisdiction # # # # ] "‹ (iv) Textile Machinery,Components and Parts The textile industry has been upgrading its manufacturing technology to rise to the international levels , under the scheme of Technology Upgradation of Central Government. Our recommendation is all textile machinery and parts and accessories thereof covered by heading nos. 8443, 8444, ˆ^^�$ ˆ^^Ž$ ˆ^^†$ ˆ^^ˆ ˆ^�\ # ` # sional duty of 6 per cent which are installed in textile mills by following the appropriate procedure.

2) Customs duty and SAD 6 ' $ + = / ' To become competitive in the international market, it is

## q ? # ment yarns at international prices, hence we recommend that # # # q � !Q ^ should be abolished. 6+ $ 6+ The concessional rate of duty on petroleum products fall "!" Z†\[ # �‡" ƒ power in textile mills at economic cost, we recommend that Furnace oil/Fuel oil be charged to nil customs duty. Textile Machinery It is our long-standing request that customs duty on parts and components of imported machinery required for maintenance should also be charged the same customs duty as the corresponding shuttleless looms and machinery, that is nil duty in the case of parts and components of shuttleless looms ## q Ž‡ # # q 16

TEXTILE VALUE CHAIN | Jan 2015

> q q % q low of 2.38 per cent in Sept 2014, the textile industry naturally expects a cut in the interest rate. In addition, the industry � # # ]‡ # # # # ment rupee export credit for textiles and garments.

4. Brand equity and distribution net work Â? # = # tablishing brand equity and distribution network, abroad.

Anti-dumping duty Q q # # q % q of polyester imported from China and Thailand which will re Z� & Z[\�" Q # $ ti-dumping duty on fully-drawn yarn of polyester imported from Vietnam was in force upto 26th March 2014 which has been extended. Besides, anti-dumping duty has been imposed on partially oriented yarn imported China, which is effective upto 1-5Z[\†" The user industry of such yarn is the Texturising indus q % # % q # # q # #" Q# # $ # # q # ceeds in getting anti-dumping duty imposed. The imposition of a anit-dumping duty has a cascading effect and therefore the user weaving industry is preferring to import texturised yarns whose imports are increasing. Hence it is the texturising industry which is suffering heavy set-back. Many texturising units have been closed down or are at # " ` q ^[ ^�‡ # q # % ? › but it is more appropriate to say that it is virtually trembling. Government is requested to immediately constitute a # # # tion of the texturising industry and submit a report in a timebound manner in a period of 3 months, so that necessary relief could be extended to the industry forthwith.

5. Service Tax ! # q Q## # ` ! ~" Q## # q ' # % ~ ' #" Q## # a rightful place in the Indian economy, because they explain to their members amendments in various Laws, Rules, Regu # " Q## # # = # #" #$ Q## # # % ?" = # ? # Q## # cy formulation, replying to Parliament Questions, etc. Hence, ` # # Q## #

www.textilevaluechain.com

COVER STORY

FAITMA and the role played by it in assisting Government, it would be # ~ Q## # # ~ empt from Service Tax. Q # # Q## # X ~ ation system, under which Service Tax becomes payable in the month following the one in which the invoice is issued, regardless of the fact whether the member has paid the subscription or not.

bers to pay subscription on the issue of invoice. # # # % q Q## # # ~ # ~" < $ q # $ Â? # is not acceptable, the least that Government should do is to Q## # #$ ing upon the time of the resignation by the members of their membership.

< q Q## $ # # % # their membership after receiving the invoice. For a voluntary ' ? Q## # ## # #

> ? 76 7 @ J * 9

> ? 76 7 @ J * 9

> ? 76 7 @ J * 9 A.

EXCISE DUTY :

Suggestions : + D~ # q # ~ q # ˆ‡$ # ~ " + D~ # q #$ # ## # ~ q # ˆ‡" + D~ # q ~ q Š # # � š Ž #

ˆ‡" Correction: This item should be like “HTHP yarn dyeing machine complete with or without dye ? ## #‹ + D~ # q # # # Š # � š Ž # # ˆ‡"

Since the user textile industry does not pay any excise duty, no SET OFF facility is available to them on purchases of textile q" Q# # # ~ q # # ~ " Q ~ # q ˆ‡ % burden of the user industry. The machinery manufacturing sector needs a support to improve their performance. This will help them to get more demand and consequent increase their production as well as capacity and would in turn help employment generation. Further, there should be uniformity in the excise duty on machines and its parts. This would also help the government to compensate the loss of revenue for the proposal as above. Uniform rate also helps the manufacturers to get set off against the duty paid on inputs.

B.

CUSTOMS DUTY :

Suggestions : + ƒ # # q # ~ q # †"�‡" + ; # q [‡ q # of only high tech shuttleless looms such as shuttleless Rapier †[[ # Q ` ` looms having speed above 1400 & 1300 meters per minute respectively. + % # ## # [‡ q$ # q # # # q ## ## Parts & Components imported for manufacture of shuttleless looms domestically. It seems the Government’s intention is to [‡ q # # % q # # their manufacturing. + < # # # q ˜ ‚ !" " 406 under General Exemption No. 165 as “8446, 8448 or any ‹" + # # q # # # # #

q Z�[ š $ D

q$ Electronic Jacquard (600 hooks and above) for supply along with shuttleless looms made in India should be at nil duty. ; < # # # Q

~ < + q % #$ #$ # š cessories should remain less than that on complete import of q$ " " q �‡" # q tween complete machine and the parts/components.

TEXTILE VALUE CHAIN | Jan 2015

17

COVER STORY

www.textilevaluechain.com

+ # q % # % tech shuttleless looms in the country. % q ' # q Z�‡" + # q manufacturer/supplier of complete ma chinery. Q # # q $ q ~ # # q \�‡ ` q

q # manufacturers. Further the domestic manufacturers are subjected to local taxes, octroi, sales tax, etc. which are not compensated or set off. + & q q would generate higher revenue for the Government and value addition will be there. + ƒ # # % # # ƒ < " + # # % # ƒ < ƒ " + < q # # # machinery such as compact spinning attachments, drums for Q % # % < # $ # ' machinery to bridge the technology gap.

Suggestions : + # # q ! ; š Q q ! ; # [‡ q"

Q \[‡ \�‡ # ~ ported. Such quality of the raw material items which is spe q # is not available indigenously. Therefore import duty on the aforesaid quality of High Carbon Steel Wi re Rod as well as Q q ! ; # �‡ [‡" # would help the domestic manufacturers to compete against cheap imported card clothing wire from China.

Suggestions : + " Â? # duty for manufacture of shuttleless looms should be done away with. This is an old procedure detrimental to the growth of the industry.

When the shuttleless loom is imported at nil duty, the �‡ q ~ # # much higher than the exempted duty in respect of the components because the value of th # # q ][‡ 18

TEXTILE VALUE CHAIN | Jan 2015

^[‡ the total value of the machine-shuttleless looms. Therefore, when the Government is not putting any ndition for import of machines by the user industry, the man # q % # = X country is being unnecessarily stressed under the condition No.5. Why the manufacturer of machinery should need a permission/approval from the Government authority to import the components when the user of the machines can import without such permission. It is necessary to remove all such bottlenecks to promote indigenous development and employment generation. C . POLICY MATTERS:

Suggestions : + ! q ~ q # DX = EOU status to be treated at par.

Q ~ # q # ? % ? # ˆ \Z % ?# q # # q machine locally. Hence excise duty has to be exempted for local supplies under EPCG. This exemption should be given as available for supplies to EOUs to avoid the problem in claiming Cenvat on inputs by the suppliers of Capital goods. + Z[[‡ % ;š ~ by all types of companies and partnership/ proprietary units. # % ;š # q &!&D#" + ƒ ~ q # # # # q # # minimum residual life of 10 years and further subject to the condition that the second hand machinery should not be old � † q #" + < # ~ q # en subsidy under the Technology Up-gradation Fund Scheme # # q Z[‡ Š ! \�‡ Š ! ! $ ' " = # be a party to the technological obsolescence as technology changes in every 3 to 5 year period. + ~ ? � q # q ing hi-tech item of textile machinery with or without foreign collaboration. This will encourage indigenous development by the MSMEs. D. NECESSARY SCHEMES:

Suggestions : + ! ' $ q and productivity enhancement of the TEI: It is recommended to launch a TUF dedicated to the Indian

www.textilevaluechain.com

COVER STORY

> ? 76 7 @ J * 9 € Industry segments regarded as weak or non-existing (rotors spinning, fully automatic winding, high tech % $ # # ## š # $ ? and industrial sewing equipment) should be eligible for up \[‡ # # q # # ment to upgrade their manufacturing facility.

textile machinery Industry. The fund should have an interest reimbursement outlay of Rs.250 crores for XII Plan and based on similar principles as TUFS and over the following areas: € D~ # ' ~ # ~ machinery manufacturing companies €

Q Â? # ? % % # #

+ D # # % D< # š !Dž ƒ < "

> ? > * ?

7 J 9 A. REDUCTION OF EXCISE DUTY 1.

Background 1.1 However current Indian textile sector is not able to ' ~ � q % š &&ƒ ' ~ # š \Z‡ D~ # MMF) and it has resulted in India remaining the cotton

# ~ q Ž[‡ ^[‡ &&ƒ and being underrepresented in global trade (leveraged % Ž[‡ &&ƒ ^[‡ " \"Z Q ~ # % a perfect eco-system of tax equality among Cotton & MMF. y

g

Cotton MMF

India Nil 12%

China 17% 17%

Pakistan Nil Nil

Bangladesh Nil Nil

Sri Lanka 20% 20%

Indonesia 10% 10%

Thailand 7% 7%

Cotton Yarn MMF Yarn

Nil 12%

17% 17%

Nil Nil

1.5 Tk/kg 1.5 Tk/kg

20% 20%

10% 10%

7% 7%

2. 2.1

2.2

Z"]

Z"^

2.5

Future prospects However with the massive economic development and subsequent rising labour costs coupled with appreciating currency, energy costs and domestic focus, China will be slowly moving out of the driver’s seat vacating a textile trade space of more than $100 Bn over the next 5-6 years. This will perfectly match with GOI new focus to revive manufacturing industry with textile as key segment in its ‘Make in India’ program and it can to do what happened in China during last 2 decades. < ~ # q # ' • ]�[ lion with an export target of $ 150 billion, India needs Z� ? ~ # ion kg comprising of 6 billion kg of Cotton & 4 billion kg of MMF. Q q < % q ˆ�[ kg/ha will take Indian cotton production to ~9 Bn kg. Indian cotton is rain dependent and limited agricultural land which will make this target very optimistic. Even in case we assume cotton reaches 10 billion Kg, we need to invest and increase MMF production from current 4 billion kg to 15 billion kg. This calls for huge investment plan in MMF plant, machinery and high technology to avert this crisis. MMF being highly technology dependant has a potential of

ƒ <" 2.6 Present investments in MMF sector are not giving remunerative returns. Major units are making losses and several units have been closed in the past due to following reasons: 3. Major reasons are: ]"\ D~ # q # # � % \Z ‡ ~ cise duty on MMF and no excise duty on cotton and % # q" !? % # policy approach is leading to stagnant growth in MMF industry and investments. ]"Z !Q # ~ # # ` impacting growth of exports. 3.3 MMF is highly technology intensive; however there # ƒ < &&ƒ # < # #" < # # ? q ;š # # like China, Vietnam and Bangladesh which have better # &&ƒ" 4.

Proposal to achieve $350 Bn Textile Industry by 2025: ^"\ ƒ # # trality in phased manner. There is need to treat MMF gradually at par with cotton in terms of excise and taxes. Propose intermediate duty regime (Excise rate Z Ž‡ ~ # D _Q " # q \Z‡ Ž‡ &&ƒ # % #$ % % # ' q Z‡ ~ # q" # will pave the way for smooth transition of entire textile chain transiting towards lower rate of GST. ^"Z # q # % # =! $ !Q # be removed forthwith to facilitate import of inputs for achieving targeted export growth. 4.3 This will not only bring the revenue neutrality, there will be incremental growth in revenue with projected growth of textile industry as a whole. The revenue projections with the present production are attached.

Proposal: i

bre textiles to be reduced to 4% from the 12% currently levied. JUSTIFICATION TEXTILE VALUE CHAIN | Jan 2015

19

COVER STORY

www.textilevaluechain.com

> ? > * ?

7 J 9

-

-

-

< Z[[Ž [†$ > # D~ # q >D ˆ‡ % # q # # " "$ X!ƒ$ X @$ ƒ @$ @ $ % % # # q ^‡ Z[[ˆ" $ # ˆ‡ Œ q Z[[ " ! # � q$ % # # \[‡ & Z[\[ & Z[\Z # \Z‡" These successive escalations in excise duty, has left behind the rationale of textile duty to be in line with q = " It may be mentioned that the end users of Synthetics Textiles are primarily those can afford buying it and easy to maintain. With the proposed reduction the cost of fabrics will be affordable to the poorest of the poor, thus meet the objective of FIBRE SECURITY of the country. Moreover, higher duty on synthetics also demotes export of value-added fabrics / garments as textile has a long chain and small manufacturers are not able to work to get refund of duty.

Excise Duty Collection at 4% Revenue Growth : The exchequer would witness an average positive rate of growth in excise duty collection, by the completion of the decade. Further, it may be pointed out that the & # q # # ' &&ƒ ~ # items and also to increase India’s share of these products in the global market. REVENUE IMPLICATIONS OF REDUCTION OF EXCISE DUTY The worked out revenue implications of reduction of ex # q % # # Q

~ " these may be chosen as both bring in the revenue neutrality. With the projected growth in textile sector as a whole, the rev # % # q Z[Z�" B. REMOVAL OF SPECIAL ADDITIONAL DUTY (SAD) PROPOSAL : < # # # ^‡ !Q # ed products and make the products in the upper value chain more competitive. JUSTIFICATION : q$ # & & # % # # q # < q Z[‡ higher than countries like China, Taiwan, Indonesia, Thailand " ! Q q !Q # # < port Parity Price of Man-made Fibres thereby making them more expensive to the manufacturers of value-added products. In order to increase competitiveness of our exports Spe Q q !Q # # all Man-made Fibres. C. REMOVAL OF CUSTOMS DUTY PROPOSAL : < # # % % # q X Q$ &D= & # # petitiveness of our exports. It will also encourage production of value added products and help to make the products in the upper value chain more competitive. This is in line with the Make in India initiative of Prime Minister recently launched. JUSTIFICATION :The structure of the Indian Man Made Fibre 20

TEXTILE VALUE CHAIN | Jan 2015

Industry allows them to charge their customers, manufacturers of value added textiles, import parity prices. This makes the price of Man Made Fibres in the hands of the makers of ~ # # Z[‡ ~ # % their counterparts in competing countries pay. This hampers the competitiveness of the Indian Exporters of value added ~ #" < # # # q & Made Fibres. D. PRIORITY SECTOR LENDING FOR TEXTILES PROPOSAL : The interest rate subvention scheme covers only limited tariff lines or MSME’s leaving out many of the export # # " $ ~ X q ! Š % # < # ~ # †‡" SUGGESTION : In order to put exports on growth track there is an urgent need for remedial policy measures to ensure availability of cheaper funds to textile industry and exports. Cheaper funds for textile industry will improve their competitiveness and give boost to exports. Further, to make subvention scheme more effective we suggest following changes - Removal of caps on value of investment i.e. INR 10crs, will enable all ~ ~ # ## # ' # # " D~ # ]‡ # # MMF textiles sector will also help all the exporters to avail this scheme and increase exports. E. SERVICE TAX PROPOSAL : Waiving of Service Tax on taxable service to in sub # ''' # \[� # Ž� ƒ Q $ # # # ## #$ ''' ƒ Q \Ž"Ž"Z[[� ]\"]"Z[[ˆ The Govt. should notify that service tax on taxable services # # ''' # \[� # Ž� ƒ Q $ # ~ \Ž"Ž"Z[[� Ž"†"Z[[ % q$ # " \Ž Z[[ ! † Œ q$ Z[[ % ! ~ "Z Z[\\ Z� Q $ Z[\\ Q

~ < JUSTIFICATION : " \Ž Z[[ ! † Œ q$ 2009, exemption was given for the services in the sub-clause ''' " $ ! ~ "Z Z[\\ Z� Q $ Z[\\ \"�"Z[\\ and covering the period 16.6.2005 to 31.3.2008. Instead of exemption from service tax on membership fee, it should have # ‰ ~ # ~ # # ''' # \[� # Ž� ƒ Q " The Synthetic & Rayon Textiles Export Promotion Council is engaged in promotion of exports of Indian Synthetic & Rayon Textiles. For the same, Indian Companies who are into manufacture and exports of these textiles take membership of the Council by paying certain membership fees, in order to avail the services of the Council. With the removal of service ~ # q ## ~ #"

www.textilevaluechain.com GSP - TEX COMMITTE

NEW-EU GSP PLUS SCHEME OF EU AND ITS IMPACT ON T&C EXPORT OF INDIA Introduction: The EUs – Generalized System of Preference (GSP) allows developing countries to have preferential or zero tariff market access on their exports to European Union (EU). It provides a vital access to EU market in terms of better market access in the largest export destination of the world conMr. T. K. Rout tributing to the growth of deDeputy Director - Market Rsearch veloping and lease developed economy most in need. The scheme which was traced its back to 1971, has been outlined by EU countries in a 10 year framework through regulation industrial, textile and agricultural products and later was applicable for all products from 1995. With the completion of third phase of implementation, the EU has adopted a new reformed GSP scheme from 1st January 2014. The scheme may not only increase the exports particularly the textiles & clothing export by manifold times but also would also have a multiplier effect on Foreign Direct Investment (FDI) employment creation and sustained economic growth. One of the newest additions to the list of countries to enjoy latest benefits of the scheme is Pakistan. The new status will allow Pakistan to export 20% of products at zero duty and 70% of the products at preferential rates.

Possible State of Play: It is expected that the Textiles & Clothing (T&C) industry of Pakistan will achieve a benefit of Rs.1 trillion per annum. It is really an encouraging estimation for South Asia region as a whole. However, a doubt has been raised on its impact on other textiles & clothing exporting countries of South Asia region i.e. India and Bangladesh; even if Bangladesh is enjoying zero tariff regimes due to LDC status and India the standard GSP scheme only. Further, the infrastructural bottlenecks, lack of sufficient power and gas, shortage of skilled manpower etc. in Pakistan may create a constraint for Pakistan to fully optimize the benefits of the scheme arising out of preferential Market Access. The study has tried to analyse the impact of New EU GSP scheme on the export competitiveness of the South Asia Countries particularly India, Pakistan, Bangladesh and Sri Lanka. It is because of the fact that these four countries are the key producers of the textiles and competing with each other across the product lines in EU market. In this regard, the paper has tried to evaluate the trend of exports of three countries of South Asia region over last seven years with reference to the GSP scheme of the EU and examined the possible implications of new scheme on T & C exports by using time series and competitiveness analyses at 6-digit product lines particularly on cotton and cotton yarn (Ch 52), Articles of apparel, accessories, knit or crochet (Ch 61), Articles of apparel accessories, not knit or crochet (Ch 62) and other

made textile articles, sets, worn clothing etc. (Ch 63) by using Revealed Comparative Advantage (RCA) and Unit Value Realisations (UVR). In order to validate the relation of the scheme to that of export of the region, the suitable co-relation model was also used in the estimation. The cost bench marking of the products in these three exporting countries has also been applied so as to study neutralise effects of the cost of production on the scheme.

Impact on India: With respect to the impost of T & C, the EU has about $ 235 Bn from the world during 2012, out of which the South Asia region contributed about $ 28.49 Bn. The region accounts 12% of the export of T&C to EU. Among the SAARC countries, India Pakistan, Bangladesh and Sri Lanka are the major player. It is pertinent to mention that the countries are competing with each other both in segments as well as at product level in these export destinations. While India exports about $6.64 Bn, Pakistan has $3.88 Bn of export. Bangladesh export to EU is mainly consisting of clothing of $14.14 Bn. as in Table – 1. Even if Bangladesh export is high in value and growth rate (CAGR – 12.44%), the India and Pakistan export basket is more diversified on competition. India and Bangladesh are competing with Pakistan on products like cotton and cotton yarn (Chapter 52), apparels (Chapter 61 & 62) and made-ups (Chapter 63). The preferential regime under the New GSP schemes will have an adverse impact on the export performance of these neighbuoring South Asia counties like India & Bangladesh in lieu of zero tariff regimes to Pakistan.

Further, the estimation shows that the co-relation between the exports of clothing’s from the competing countries of South Asia like India Pakistan and Bangladesh to that of total export of clothing’s from all GSP receiving countries depicts high positive co-relations. Hence Pakistan stands to gain from the higher preferential treatments arising out of GSP plus status, which may neutralise the cost advantages enjoyed by other competing countries of the region.

However, even if Pakistan likely to gain from the preferential treatments, the factors like infrastructural bottle necks like scares power and gas supply, lack of quality manpower may create constraints for Pakistan to fully capitalise the preferential arrangements offered by EU. Further the conditions put forth by European Unions in the form of compliance in issues relating to environment, human and labour right laws, governance will adversely affect the realisation. A deeper analysis indicates that India is enjoying a comparative advantage in whole segments of textiles and apparel products. The cost-bench marking is also in favour of India. Similarly, Bangladesh has been enjoying comparative advantage in most of the apparel exports to EU. The availability of cheap labour is an added advantage to Bangladesh. Hence only one segment of textiles in which Pakistan is enjoying comparative advantage is other made up textile articles, sets, worn clothing etc (Ch 63) besides some products in Chapter TEXTILE VALUE CHAIN | Jan 2015

21

GSP - TEX COMMITTE

www.textilevaluechain.com

New-EU GSP Plus Scheme of EU and its Impact on T&C Export of India 52. The country has also been in the fore front in export of the made-ups to EU. Hence Pakistan will able to enhance its market share in most of this products of Ch 63 and few products of apparels and cotton yarns due to the implementation of the GSP Plus schemes. Further, the GSP plus advantages be perceived to be accruing to Pakistan are also likely to trigger strong defensive action from textiles lobbies with the EU (i.e. Italy, Portugal and Greece in Textiles, Romania in clothing) and offensive actions may be initiated by the main non-EU competitors of Pakistan (i.e. Bangladesh, China, India, etc.) Conclusion: In synthesis, the extension of the EU’s GSP + preferences to Pakistan will certainly boost its competitiveness, but ultimate success in accessing the EU market in greater

quantities will also largely depend on Pakistan’s ability to meet EU consumers’ demand, both in terms of reliable export # � q$ # # q$ invest in technologies and skilled manpower, and to be able # #‚ # # #" X ? # # # % #$ q$ good management practices, and higher reliability of its supply chain, infrastructure, and safety/quality compliance. The short-term advantages of tariff preferences under the GSP + must be wisely invested for this long-term goal, nor for short " ƒ < $ # tiveness of the sector in terms of reduced cost of production and enhanced quality so as to enjoy the comparative advantage in EU.

Hi CAI – Heroes of Textile Value Chain ---[ by V.Y.Tamhane] Q % q # # # Q## < $ ment consumption of cotton in the country. The cotton season 2014-2015 pr # # " # # $ # # # will be the highest on record,, being of the order of 40 million. Cotton prices in the global market have declined substantially. Indian prices have also declined, but prices are not competitive and attractive for foreign buyers. It is apprehended that, cotton exports to China will fall from 11 million bales in 2013\^ Ž † # Z[\^ \�$ # port policy adopted by China. In the meantime, Government has started procurement of cotton under MSP operations. It is somewhat queer that India which, was an importer of cotton some years ago, became the largest exporter of cotton and is now saddled with the problem of disposal of cotton to ensure economic prices to the grower. Cotton is in cost-glut pincer and bold steps are required to maintain the growth of cotton % #" < # Q## < Q< # " # # Q< # q# that ‘ it would play the lead role in ensuring the supremacy o King Cotton by increasing consumption at the end-user level.

# q } # q Mumbai and other reputed Universities. Q # $ # ## q ? # changes in the lifestyle, aspirations of the Indian consumers and their value-conscious approach. Growing consumerism is another dimension to the consumption story. # q Z�‡ # # purchasing power from the cotton sector to the consumers, % % q % # " # # % #

' chase of cotton fabrics. Q # $ # ` # †‡ # ~ penses. The present household consumption is worth US $ 54.43 billion. For every increase of one percentage point, in the expenditure of clothing the household consumption will q }! • †"†� " # # % # be exploited for marketing cotton-based products, on the basis of their enhanced qualities.

# q Q< # q $ ' q ## # fabrics can acquire some of the consumer- preferred qualities # ? % ? $ ## $ % # and wear, easy care etc.

Q # $ # ~ # # # # # are brought down to an economic level. The shattering load ~ # q # " # # # # that Textiles is a low- margin- high-volume industry. When the # # % $ # % # q % ing from economy of scale.

If scientists become successful, which is bound to happen with sustained efforts, the tide will once again turn in favour of cotton fabrics. It is to be noted here that, the main advan # # q textiles have not been able to acquire this virtue of cotton fabrics.

To make the programme of imparting additional qualities to cotton fabrics a grand success, a central body of apex organi' # $ ~ # = # # " & # q Q $ = nt of India should also come forward along with the Ministry of Textiles to supplement the funds required for product development.

~ ' # ~ # # # ` Q< # # # # # $ # ~ D~ $ q Q <;Q$ >< ;Q$ < ;Q$ !< ;Q << # # ~ q

Q # % # # ~ chain, and make it cohesive. Only an integrated value chain can power the industry to overcome hurdles and achieve fast % " < # % q Q< # # ? # ? step in that direction.

22

TEXTILE VALUE CHAIN | Jan 2015

www.textilevaluechain.com

EXPORT FOCUS

Roadmap to Indian Textile Exports India is gearing up to play much bigger role with new policies announced by new Government under leadership of MrNarendraModi. The publi ' $ ‰& ? < ‹ would certainly give rise to a bigger potential to export from India as well.

Introduction: The current global garment market is approximately US$ & " Q # & q ? 1.15 trillion which forms nearly & $ ! Q # # X " Ltd. \"ˆ‡ % = X" Q # †�‡ # ? # D} Z†$ }!Q$ Œ " # tremendous opportunity available for India in terms of Textile & apparel exports. Last year, Indian Textile industry did remarkably well in terms of exports. Textile exports % •]["]† from $26.36 billion in previous year. Out of total Textile Exports, readymade garments, which accounts for nearly half of all textile exports at $14.93 billion, grew 15.53 per cent. Cotton yarn and fabrics grew 18 per cent to $8.88 billion, while manmade textiles grew nearly 13 per cent to $5.69 billion.Though we have grown substantially in terms of Textile Exports last year, we can not ingnore 2 majorexternal factors like weak rupee & > # ~ q % < Textile Export. Q# % # % % # $ ~ š Q š Q # # # " Increasing per capita, changing lifestyles & fashion culture are # š Q" ! $ abundant raw material & cheap labour gives India a big op q # š Q ? " ! % q for this opportunity? Our Textile Ministry hasvision to increase our export to •]�[ q Z[Z^ Z� % Q=; Z[‡$ % # ## only when the equal efforts are put by government as well as entrepreneurs.

Role of Government

Major role of the Government is always to facilitate creation of conducive environment for exporters. Exercise supportive policy framework, create suitable infrastructure, make availability ofstate-of-the-art technology, attract skilled work $ ? # #q š ? platforms. It is very muchnecessary for government to identify the requirements of Textile exporters. Most of the exporters face major challege due to inconsistent export schemes. Q ~ # q q # to boost exports in the particular segments, increasing incentives on export of certain high value products like garments, technical textile will certainly help the exporters. Governemnt # # ~ # # % # # # # % turn fetching them higher returns & giving government more foreign exchange. e.g. we should focus on garment exports $ q ~ #" # # # # ~ % q # ~ # and it will create a pull across complete value chain. ž ‡ < q \[[‡ D } ! % # q favoured by most of the Textile Exporter in the past. Many Spinning EOU units were put up under this scheme during years 1990 to 2000. The scheme can be relaunched for the growth of the Textile Exports. Focus Market Schemecan also support exporters in competing with foreign export market against high freight cost and other externalities. We need to study our strengths and target market segments. Supportive infrastructure like textile parks, common ETP,

#$ ~ # % ?$ turupted power &quality water supply are important contributors for the growth of exports e.g. presence of textile parks in cotton growing areas which will have nearness to ports, textile institutes, CETP &other resources. We can not manufacture goods of export standard with obsolete technology. State-of-the-art-technology is essential to produce high quality standard goods. Government has launched TUFS scheme to support technology development which is an appreciable initiative, more such schemes will be helpful to support technology up gradation and can boost export segment. High skilled labors trained for international skillsets and quality standards will help to achieve higher productivities & good operational management with lower defects. We need to redesign our existing educational programs to create high skilled human resources. Need base Educational seminars & training programs can also help to create good resources. # # % # # # and have experience in training to textile experts as well as labors. Such kind of training programs can develop a good skilled workforce in our country. < % # # $ q # # # ~ ` # # TEXTILE VALUE CHAIN | Jan 2015

23

EXPORT FOCUS

www.textilevaluechain.com

Roadmap to Indian Textile Exports #" q # ## #" q # ' ` Ž † q # q ? % ! ; \"� \"† <;; \Z \^‡$ ?# # " $ q are a bit hesitant to sanction loans in this particular industry. However, due to high foreign exchange earlings and sustainability of more than hundred years of existence, the banks should reconsider their exposure to this industry. Entire industry cannot be judged upon few of bad experiencRight Products es of servingback term loans because if we look at the overall scenario, texAt Right Place tile industry fared very well in paying At Right Time back the term loans. The right marketing platform for exporters to showcase & promote their products at international market is essential. Government can give subsidies to exporters for business development activities like participating in various international events & other business promotion activities. Government can hold certain international exhibitions for Indian exporters which will create awareness on Indian Textile Goods. The time has come to book export pavillions for all exporters under Indian Brand and exercisr professional networking with all probable buyers. We need to understand buyer’s requirement and create product portfolio for them.

Role of Exporter Major challenges faced by Indian textile exporters is to meet timely deliveries. If we see any export business, leadtime q# " � ? # # product cycle is becoming shorter, which further demands shorter leadtimes from exporter. In contrast to this, Indian ~ # # q š # #" & ` #

# ## # our higher production cycles and unplanned production programs. We need to address this issue by shortning our overall production cycle by effective Production Planning & Control (PPC) & advanced technology level. The other challenge faced by exporter is right quality. International apparel brands have stringent norms for quality & shades. Many export shipments are rejected for various issues like shade rejection, strength parameters, fastness etc. We need to standardise our products to match all quality norms & standards so that we can supply right product & reduce losses incurred due to shipment rejection. We also need to stick to certifying creterias and maintain quality standards across value chain. < # # # q after China. India’s cotton production was 6641 thousand

24

TEXTILE VALUE CHAIN | Jan 2015

metric tons in FY 2013-14. China is the biggest importer of In " < # ? q China will reduce substantially as as they are already sitting with huge inventory. So, now the time has come that exporters should think of forward integration options in Textile Value Chain. They can think of various options to manufacture value # # ~

" # % q #" < $ ? # Z�‡ of total fabric production which is comparitively very less considering huge market for knitted fabric. Our exporters should think of exploring new product options and can win over competiton in untapped product segments. Technical Textiles is another opportunity for Indian ex #" ~ # % # % }! \]]" ] Z[\Z # ~ # }! \Ž["]ˆ billion by the end of 2018. In India, export knowledge about Technical Textiles is at nascent stage, but time has come to put our all efforts to capitalise this big global market. With the abundant availability of raw materials& cheaper labour, we have conducive environment to manufacture of Technical Textiles. Now we have to focus on technology know how & product developments. Even existing conventional textile exporters can add few technical textile products in their basket ? # ? " q for technical textile products and India has to enter into this sector in a big way. Q %

š #$ ~ porters should keep on exploring new global markets & widen their customer base.

Summary India need to understand a basic fact that after China, if any one can play a bigger role in the textile and apparel sector, is only India. Moreover, due to increase awareness towards cash products, China is likely to curtail its market share in Textiles and that itself is a huge opportunity for India. It is a very crucial phase that our government & exporters should take concrete steps& start moving towards common goal to achive our Textile Export vision. Government needs to create conducive environment for exporter by creating supportive policy framework, suitable infrastructure, state-of-the-art technology, skilled workforce, š ? # % # ~ # # gradually think of moving towards forward integration manufacturing value added products positioning their products at right price and in the right markets. Consultants like us trained with international technology are always ready to bridge the gap between exporters & untapped opportunities and spreading the wings of knowledge across the Textile Value Chain‌

www.textilevaluechain.com

TEXTILE VALUE CHAIN | Jan 2015

25

POST SHOW REPORT

www.textilevaluechain.com

TEMTECH 2014 REPORT $ ~ q # % % # ' q Standon Consulting & Textile Mirror at Bhilwara on 11th to \] Z[\^" < % # # # % Bhilwara Market. Bhilwara market have ample number of manufacturer of suiting and shirting. Show was inaugurated by BSL’s adviser Shri R.N. Gupta. ƒ % # q # % # ? ! Q % $ ! ! q ?$ ! Q # ‰> % ~ ƒ ‹ % # # ~ " < % # % appreciated by exhibitors for the services , hospitality, quality of visitors etc. Many exhibitors displayed live machines, visitors are enthralled by same. Visitors also appreciated the efforts, platform created for exposure of the industry. Over all it has good show for the city like Bhilwara. Organiser also announced next TEMTECH show in 2016. Next show will be much bigger and also have few international q #" Q# q % # ? # # % # # show in North India for Textile machinery and engineering industry.

PRE SHOW REPORT

Heimtextil India 2015: A successful start with over 50% space booked Bigger space makes way for a grander display and compelling fringe programs Changing consumer dynamics to push growth in furnishing market to 8% by 2018 Q % # ## ~ < # summer, Messe Frankfurt has announced announce the next edition of inspiration - Heimtextil India 2015 that aims to bring with it enhanced opportunities to network during < q # # $ Z� “ Z† Œ Z[\� X & $ % " # #$ # # # scale up the exhibition level, have decided to focus on technical innovations, upcoming talents, knowledge sharing, as well as home furnishing and textile market developments through strategically planned fringe programmes. Covering 4,000 sqm exhibiting space, the second edition of the fair % ^[‡ # " Q % # # $ ? # for the 2015 edition is also up with �[‡ # q ? q ` < #" mand for space from international manufacturers of home furnishing and contract ~ # # # % # ~ pected in the coming months. Growth of modern trade outlets, retail revolution and % # ~ q # ing the vibrancy and upbeat mood of the Indian home textile 26

TEXTILE VALUE CHAIN | Jan 2015

industry. In line with the lifestyle changes and growth in dispensable incomes, the increasing consumer interest towards dĂŠcor and lifestyle products will be the essential demand driver for home furnishings. Expected to witness a compound annual growth rate of ˆ‡ Z[\] Z[\ˆ$ < # ? # # ## ;#" ;#" ][Â? ] }! Â? # q 2018. The boom in realty, retail and hospitality sectors will also spur demand for interior and decorative products, making the future of home furnishings more promising. Creating the perfect launchpad for new ideas and innovations, Heimtextil India 2015 will represent the entire gamut of home furnishing and contract textile products, clas# ## # such as: bedroom, bath linen, table linen, kitchen textiles, window decorations, furniture # $ ~ ings, walls of the world, as well as edesign and technology. The fair’s strategic co % Q India will offer an ultraconvenient sourcing experience to home fashion buyers in India by offering the widest spectrum of interior, lifestyle, furnishing, collectibles and home dĂŠcor products all under one roof.

www.textilevaluechain.com POST SHOW REPORT PREMIERE EDITION OF ITMACH INDIA: A WINNER FOR EXHIBITORS AND VISITORS Surging crowds and on-the-spot signing of purchase contracts were the q < &Q < Z[\^$ Q " q $ \[ \] $ Z[\^ % # # cused textile machinery exhibition in Q %$ state-of-the-art exhibition centre in Gandhinagar.

# " # ? # Q preferred location for an international q ~ ? < &Q < dia.

Exhibitors and visitors have evinced # # % # %" Q Shri Ramesh Brahmbhatt, Yamuna Ma ?# Š $ ‰< &Q < Z[\^ is a very well-organised show. We are The international textile machinery happy to be here, and to meet our existexhibition hosted around 200 exhibi- ing customers, and some new customers # Z\$^ˆ† # # "‹ days of the show. Exhibitors were satisQ # ? % # % � q # # Sagar Group. The company represents a # � #" < &Q < Z[\^ large number of international and Indian attracted serious visitors and decision machinery makers. Says Shri Varishensamakers from the textile industry, from gar Shah, “We are happy to participate in across the country. International visitors < &Q < Z[\^" # were from Egypt, Ethiopia, Iran, Nigeria, X ? # " # ## < &Q at the show, while also meeting with our India 2014 establishes the need of a large existing clients. With the industry in investment mode, this is the right time and exhibition centre, beyond Mumbai. # q # %"‹ # % Q ~ ! ! and the concurrently held international & # # # # $ ‰< &Q textile conference, `India’ – OpportuniIndia 2014 did not attract visitors, the ties for Global Textile Investments, Shri show attracted buyers. Those visiting Saurabhbhai Patel, Hon’ble Minister of the show were serious about doing busiFinance, Energy & Petrochemicals, Govness at the show, and were able to meet ernment of Gujarat, said, “Gujarat is movnot just their existing suppliers, but also ing towards becoming the textile manu q" Q # new suppliers. This was a win-win show $ ~ ? < &Q < ~ # # #"‹

cated 6 kms away from X Q # $‹ ! ~ < # # & Q X said. “We intend to complete this project

q Z[\† \ˆ" % # # ning, weaving, knitting and processing in # q$‹ # $ ! ~ < # tries has already been into textile business in Gujarat with one of their plants located in Kalol town near Gandhinagar. The upcoming Pipavav unit will be the 10th plant of Sintex Industries in the country, and will be set up in phasewise manner. Patel also said that Pipavav plant will have one million spindles, 2,400 weaving machines and a capacity to churn out 600 tonnes of knits.

“Phase-one of Pipavav textile manufacturing plant will be operationalised by March 2015 and we will be adding one lakh spindles every two months and # ` Z[\† \ˆ$‹ said. Patel said the plant will generate employment opportunities for around ˆ$[[[ # # ^[ �[‡ the employees will be women. “We expect a turnover of Rs 9,000-10,000 crore for the company after the Pipavav plant % # q$‹ X # $ adding that the company’s turnover was is very much the need of the hour. We Says Natascha R Meier, Head, Sales ;# Ž$^[[ # # % < &Q < % & Marketing, Graf Group, “We are very % Z[‡" ‰X # % nual event in Gandhinagar’s Exhibition happy to be at the show. The response is not only range up to cotton but will also Centre, which is a world class exhibition beyond expectations. We had not expectinclude multiple products like polyes q" < # < &Q < # % ed an international class show when we q #$ # # q $ Šq $ $‹ X grow from one hall today to several ones < &Q < # $ Ž[ ˆ[‡ in the next one year, with full support of 2014. We were able to meet new, serious ucts will be exported. “Besides, there is a # "‹ # q "‹ huge opportunity globally in this sector, Gujarat is fast becoming the textile While some exhibitors were able to especially as the space is being vacated manufacturing hub of the country, with clinch business deals at the show, almost by China. several prestigious projects coming up ~ # % Meanwhile, Welspun has also anging orders as a result of the show.

# ~ # # # Q ` Textile investments on the rise Gujarat-based Sintex Industries has announced plans of setting up a Green ~ # X vav port with an investment of Rs 5,500 crore. “We would be investing Rs 5,500 crore to set up this project, which is loTEXTILE VALUE CHAIN | Jan 2015

27

www.textilevaluechain.com

28

TEXTILE VALUE CHAIN | Jan 2015

www.textilevaluechain.com

TEXTILE VALUE CHAIN | Jan 2015

29

TECHNICAL TEXTILES www.textilevaluechain.com CHALLENGES AND OPPORTUNITIES FACING EU COMPANIES IN TECHNICAL TEXTILES The world market for Technical Textiles is estimated by = ' Z^ # " " Z[\Z $ # industrial sales volume beyond US$ 160 billion (including downstream value added steps like technical make-up, resin impregnation, etc.). The largest Technical Textile global enterprises like Ten Š $ X }!Q $ Q # ! $ q }!Q $ " “ % }! • \

# #" % $ ~ # # # ][ ‡ ~ tiles produced. In countries like Germany, the Technical Textiles share in tonnage is already reaching about Ž[‡ ~ # duced and is expected to Ž^‡ q Z[\�"

Hendrik van Delden, X $ = ' = Krefeld, Germany

Technical Textiles in the abovecontext include high performance composite reinforcements like glass or carbon fab # \Ž‡ % ~ # $ % # ]Z‡ world TechTex share) and other woven, knitted, braided or yarn type prod # �\‡ % ~ share).

# ? q #q # Technical Textiles. # # # q X q # # q #$ % Z[\Z q Ž[‡ % # q †�‡ q Z[\�" Q # $ # q # % # version of these yarn capacities into fabrics, which are then to be exported to a considerable extent to the world markets including Europe. High and growing EU imports of tire cord fabrics and PET based coating substrates from China underline this trend. On the other hand, the European Technical Textiles indus q # # # # ? q gies and markets which are growing faster than the Technical Textiles industry as a whole. Nonwovens clearly continue to be a higher than aver % # q Q=; D �"Z‡ % Z[[ 2013) with some Non-Woven technologies – such as spunlacing (hydro-entanglement of carded webs) or spunbond (spunmelt nonwovens ex chips) – showing higher growth rates than nonwovens overall. This is certainly due to the fact that nonwoven technolo # ~ $ % # # # # $ " "$ % #" ? & Q # % # protective garments (‘Protech’) – which were historically based on wovens – is one indication for this trend. Spunlace nonwovens for decorative car interiors (replacing knits) are another indication. Q % # ~ # # reinforced plastics (‘composites’). # q # ##$ X Q driven by industries like aerospace, boat-building, sports � % #$ # ricbased composites are now entering the automotive sector as well as areas like high end luggage (with PP tape based wovens), Medtech (prosthesis), Medical equipment, etc.

Fig. 1: Technical Textile Market share Source: Gherzi research and estimates

Looking at individual company performance in European ~ #$ # # # #¤ \Z‡ # Z[‡ D>< Q # # # " # # lows for listing on the stock market,as demonstrated by key players Ten Cate (NL) or Low & Bonar (UK). ? q ## # % = ' ‚# % # dustry has to face in Europe, is to a lesser extent the import threat from ready-made products coming into Europe from Q# # # D 30

TEXTILE VALUE CHAIN | Jan 2015

Fig. 2: Composites in different applications Source: All-free-download.com

Such typically woven, stitch-bonded or unidirectional ˜} ‚ # “ % q # with thermoset or thermoplastic matrix material - called ‘pre #‚ # # ~ surfaces).

www.textilevaluechain.com TECHNICAL TEXTILES

wovens) on a laminator, a mouldable sheet is formed, which is then further processed by various deep-drawing technologies into structured parts (like structural elements of car seats or sports equipment) by the downstream non textile manufacturers(n.b.: lamination technology in general can be considered as another Technical Textile segment showing above average growth rates). Fig. 3: Stitchbonded multiaxial knitting machine and stitch bonded productSource: Karl Mayer

$ q # ~ # ? XQ TPU) are growing in importance at the expense of thermoset (like epoxy or phenolic resin). Thermoplastic ‘pre-pregs’ are typically employed in ‘organic sheets’, a market where large # ;š “ # q q # q “ rently invested. The trend toward the use of thermoplastic ‘organic sheets’, which can be deep-drawn and over-moulded,represents a new market for European textile enterprises.By combin # ~ # # XQ$ X} XX! % ~ # ? = ##$ Q

Pre-pregs are growing worldwide and as such offer opportunities for the textile fabric manufacturer to move up the value chain and build up plastic resin related intellectual property (‘IP’). Looking at the larger picture one can state that the big megatrends ‘comfort increase’, ‘ageing population’ and ‘weight savings’ all play in favour of the European Technical Textile industry. This concerns Non-Wovens (e.g. for hygiene) as well as wovens (e.g. for composites). The future should thus be marked by continuous growth of Technical Textile demand in existing, emerging and new market segments, requiring, nevertheless, also a continuous # ;š $ # % as plant and equipment.

TECHNOTEX 2015 Sunshine Sector. ! " € ! = $ ~ ## ered the address on the initiatives and schemes for the development of the Technical Textile Industry.

Shri Santosh Kumar Gangwar, Hon’ble Minister of State for Textiles (Independent Charge), Govt. of India presided the Š q ~ Z[\� [ Z[\^ in Mumbai The Launch ceremony of 4th edition of the Technical Tex < # #‚ # ~ Z[\� # % q # ! = # = of India, Government of Maharashtra, Industry Stalwarts and representatives of various Industry associations and International trade bodies. The Launch Ceremony began with the welcome addresses and Industry perspective by Shri Mohan Kavrie, Managing $ ! = % % # % q # on Indian Technical Textile Industry and Technotex 2015. He welcomed the esteemed dignitaries and briefed the industry ## ~ Z[\�" Q # # ? % # ~ < # q < D # ' < Q }# and promoting investments in India pertaining to the Growth of the Technical Textile Industry- which is referred to as the

Shri Santosh Kumar Gangwar, Hon’ble Minister of State for Textiles (Independent Charge), Govt. of India, delivered the Inaugural address for the Launch Cer q ~ Z[\�" # ' initiatives, schemes and environment of encouragement provided by the Govt. of India A Brief on Technotex 2015: Technotex 2015 would be the largest International Exhibition & Conference of Technical Textiles in India. The annual $ ' ` q q & # q ~ #$ = " < ƒ< < # # # ^ Q  \\$ Z[\^ at Mumbai. The event has the support of many Industry associations. The Technical Textile industry is at the threshold of rapid growth with the Government of India providing an atmosphere of support and encouragement. One of the most ` # ' ~ # # is to highlight the investment possibilities in the country’s Textile industry. Leading companies from all over the world q $ % $ = q$ < q$ !% ' $ Œ $ ; ## $ }!Q$ ! D # Q# # pating both as exhibitors and visitors. The event would also play host to a galaxy of eminent speakers and leaders from India and abroad. TEXTILE VALUE CHAIN | Jan 2015

31

www.textilevaluechain.com

32

TEXTILE VALUE CHAIN | Jan 2015

www.textilevaluechain.com POST EVENT REPORT

FICCI TAG 2014 Conference concluded on the successful note ƒ< < Q= Z[\^ ? \ˆ$ Z[\^ & % % # # = % <

~ # q" Q % ‰ = % <

‹ X q ƒ< < ' % # # # " The conference kick starts with the welcome address by & " ? & ? $ $ ƒ< < & # ! " < # % ##$ < ?# †Ž position among 143 countries in the global innovation index 2014. These certainly suggest India requires lot of efforts to

;š " Mr. Suresh Kotak, Chairman, Subgroup on Textile & Technical Textiles, FICCI – MSC in his address requested the textile industry entrepreneurs to put efforts to made the Indian textile industry innovative and take this industry to the new of heights of the success. < # $ & " X # Q % $ Œ " & $ ' Q # # X Š # ## importance of the innovation in the today’s business. This is right time where every textile company in the entire value chain should focus on the innovation to bring the business excellence.

and Product Quality. With increase in manufacturing costs globally, businesses are focusing more on enhancing productivity to improve the bottom line and new technology is playing key role in achieving it. The major points which came out in the conference was innovation is necessary not the choice in this competitive world and have to build up same culture in the companies. Textile industry needs to act as one unit and the entire value chain should come together to raise their agenda in a single voice. Customer is kings and look at their need so that companies will know from customers what to innovate and work backward accordingly. India is not less innovative in nature but obviously its need to be spread entire value chain of tex # q" Q# q % # % leverage it to further. Technology is for survival so we have to use the latest and innovative technology to be competitive in the market and build up the innovative technologies more and more.

& " Œ % `? $ & $ Q ? < # # Š stated that each company should invest in the innovative technology which ultimately gave you the right product with right % # % q‚# # out. In the panel discussion on the Product, Process and Systems Innovation – The Success Mantra, eminent panelists from different sectors discussed about the innovations taking place in textile and apparel industry around the globe from # # # " # # # # & " Œ % `? $ Q ? < # #$ & " ; ` q $ & < # #$ & " ! ! Q $ # < $ & " & & % $ < _<! Q$ & " Œ q € $ 'q # ! Q# $ % novation is the backbone of success in changing global scenario and how their companies have innovated product, process or systems to remain competitive and contemporary.

01: Mr. Deepak Mukhi, Head, FICCI – MSC, Mr. Suresh Kotak, Chairman, Subgroup on Textile & Technical Textiles, FICCI – MSC, Mr. Dilip Jiwrajka, Managing Director, Alok Industries Ltd, Mr. Prashant Agarwal, Jt. Managing Director, Wazir Advisors Pvt Ltd

< # ## Q D~ q‚# $ # # # # & " Q ! $ ' Q # #$ & " Q ; ` # $ ; < # #$ & " _ ! $ > ~ < Q q$ & " & ! $ Birla Cellulose and Mr. Yogesh Mehta, Welspun Zucchi Textiles, discussed about the competition in the export and domestic market and how successful manufacturers have grown their market share through a core strategy to excel. < # # ## # ? # ? & " Q # & q ? $ ! Q # #$ & " Q# # ! $ '# < $ & " X # $ € & q & " Q % $ Q" "D" D # # talked about the Role of Technology to Improve Productivity TEXTILE VALUE CHAIN | Jan 2015

33

www.textilevaluechain.com

34

TEXTILE VALUE CHAIN | Jan 2015

www.textilevaluechain.com 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

TEXTILE VALUE CHAIN | Jan 2015

35

POST EVENT REPORT www.textilevaluechain.com

Indian Textiles - The Way Forward

by Textile Association (India), Mumbai Unit

~ Q## < $ & } ' Q

‰< ~ # “ q ƒ % ‹ Friday, 14th November 2014 at Hotel The Lalit, Mumbai. The Conference received overwhelming response. The presentations were highly appreciated, particularly all the papers in # ## " ƒ # ~ es, there was a presentation on Intellectual Property Rights in ~ # š = # ~ # #" & " " > # $ X # $ Q<$ & } % = # $ & " ! X % $ Q " ! q ~ # $ = & # $ = # " X" q ?$ Secretary, Textiles Committee, Ministry of Textiles, Govt. of < $ Q% #$ ! ? #$ X ##$ & #" congratulated three recipients of the Industrial Excellence Q% #" & " _" " = $ Q<$ & } ner of the Conference gave the highlights of the event. The & } # # #$ ? $ ? $ # q $ interest of textile professionals. " X" q ?$ ! q$ ~ # $ & # q Textiles, Govt. of India in his address, specially mentioned ‰& ? < ‹ ## X & # $ dra Modi. He pointed out how India has been exporting less valued items in textiles and how our value addition has been staying at a very low level. Weaving and processing sectors have to be strengthened, If the basic material is not up to the mark, then the end-products will also suffer, he said. The entire industry has to be integrated in one way or the other. Q< & } & " Q ` > % $ & $ Q" " D" D # # X " Š " &#" = ? $ & $ # = > # Š "$ & " " Q" Q q $ $ Q## # % ‰< # D~ Q% ‹" & " Q ` > % $ # $ ? # q # Q" "D" % # ## # q" # Q" "D" % # # the textile industry along with other new areas for thrust it has undertaken since textile has a vast potential for growth in the coming years. & " ! X % $ Q " ! q ~ # $ = ment of Maharashtra who was Key Note Speaker and the Chief Guest. He appreciated the topics selected for the conference. He said that huge quantity of cotton is grown in the State of Maharashtra, but thousands of bells are diverted to other # #" Q X % $ # # # ` < dia. Cotton is in North, West and Southern parts of the country. But the consumption centres are in different places and after the making of yarn, the cotton sent from Maharashtra comes back to Maharashtra as yarn. This ends up in consuming more

36

TEXTILE VALUE CHAIN | Jan 2015

time and money during the conversion, leaving the logistics in # q" ƒ # $ �[‡ # q are made in Maharashstra, and this is sent to other centres for processing, entailing additional cost. This is the biggest challenge today. The third challenge is the environmental compliances in processing. &#" ; ? ; $ ƒ $ & š D $ & # Q Q## & X " Š " # ? ‰ Q ## ~ ! ‹" ! # looks at the capital invested to market cap ratio, non-textile companies show much better returns compared to the textile companies. She also acknowledged the fact that the textile # # # # solicit from investing on account of poorer returns demonstrated in the past by Indian textile companies. She advocated that the Indian textile industry create a robust Eco System wherein the industry divides the responsibility to create a value chain or a company which has very high core competency in that limited sphere that they do and are highly dependent on each other to deliver the entire value chain. &#" X q € $ ! " $ !> > ? # ‰ # ƒ D~ ƒ #‹" She dealt with the technicalities as well as commercial impact on the business. She also suggested how to effectively deal with the situation. dv. Sanjay Kher, Clover Consulting Pvt. Ltd. presented the paper on “Intellectual Property Rights : Ethical business #‹" < % # # % q accolades. Mr. Kher laid the importance of IPR in all future

# ## #" # # ' # % < dia and most developed countries on IPR & " € = $ _X$ ! ! #$ ; ' nologies India P. Ltd. presented the paper on “Execution and D # ~ X ` #ÂĽ Z[‡ Â?[‡ # ‹" X ` ect implementation delays escalate the cost of the projects which many times become so high the viability of the projects comes in question. Mr. Gupta showed how the projects can be executed faster.

www.textilevaluechain.com

Post Event Report

TECHTEXTIL INDIA SYMPOSIUM OFFERS EXHAUSTIVE INSIGHTS INTO KEY FOCUS AREAS AND INDUSTRY GROWTH MOMENTUM

Global per capita consumption of nonwovens to double by 2025 Growing indigenous market and export orientation hold strong growth potential for Indian technical textiles sector Techtextil India Symposium has emerged as the primary conference for highlighting the prowess of technical textile and nonwovens sector across the globe with several editions of the conference held over the past years in Frankfurt, India, Middle East and Russia. The most recent edition held in India, \Ž “ \† Z[\^ & $ # % ing of professionals from the industry and a packed hall with 135+ delegates from India and abroad. q # ? % %

~ # ? $ & " & ÂŒÂŚ ? $ > Management Technical Textiles & Textile Processing, Messe Frankfurt, in his opening address, pointed out: “Technical textiles is one of the most innovative sectors and stands among # #$ # % tential. Worldwide, the sector is expected to witness growth q "‹ Presenting global trends and the vast opportunities in < ? $ # # ## % & " ? " $ & X = ' = $ Germany, highlighting how the evolution in manufacturing and industrial sector demands lighter technologies steering towards trends such as % # $ formance fabrics. Presenting developments in nonwovens, D Q Q ## # % # and related industries pointed out that consumption of non% # # ~ # double digit growth is predicted for the Indian market in next three to fours years. Moreover, global per capita is likely to % ? Z[[\ % ? q Z[ZÂ?"‹ With the Indian government keen to increase the contribution of manufacturing in the economy, local technical textiles # # ~ % Z[‡ Q;= ~ " Speaking about how the sector can achieve this growth target, & " _ ` q €"$ Š # Q # q$ < ;Q & agement Consulting Services Ltd said: “Challenges related to q # q % #$ q power related issues and high transaction costs are the major % # # " Q ? ~ ~ and a multi-pronged strategy targeting domestic market consumption pattern, export promotion, institutional demands and value added products will ensure we achieve this growth ` "‹

Q % ˜ % # ƒ and Composites’, the symposium also saw frontrunners in technical textile sphere like Reliance Industries Ltd, Teijin India Pvt. Ltd., Saertex Indiaand Leister Technologies India Pvt Š " }

# # q q # #$ # # % # # # composite system and technologies that optimise weld pa #" # ## q % # sive perspective on ‘Nonwovens industry and innovations’ wherein speakers stressed that nonwoven is a highly research driven industry and India needs to apply a multidisciplinary % # ;š ~ #" > ? q # demand from disposable and durable commodities, growth in the sector will be sustained by material innovation that can conserve energy, achieve sustainability and involve high performance factors. Future opportunities will stem from integrating woven and nonwovens in wearable electronics, lighter weight components, carbon composites and glass fabrics, autonomous vehicles, energy storage, advanced materials and % q" Q # #q# # ## ;š support these developments. Industry challenges and technology developments take center stage on day two. q % ~ # development prospects offered much in terms of technology innovations and developments with speakers highlighting innovations such a resin coated glass fabrics - a new tool for # # # $ Z § # # Z š ] technologies without the disadvantages and developments in Warp Knitting for Technical Textiles. Bringing sector specialists from consultation, manufacturing and research sides for the highly anticipated panel discussion on the ‘Technical Textile Industry – Future and Growth Outlook’, the conference mirrored concerns of the industry on how India can become a powerful force in the global technical textiles sector and match pace with dominant players like China and Japan. The discussion saw some very interesting inputs from the panelists during which Mr. V. Jiagopal, Manag “ < $ & # X " Š " # ¤ ‰> # ## #

# # # ~ "‹ % & " } ? # !" $ D~ $ < ternational Ltd was of the opinion that “Technology transfer can provide a major boost and companies should look at joining hands with experienced international players for long-term business gains.“

TEXTILE VALUE CHAIN | Jan 2015

37

www.textilevaluechain.com

! ok th Bo boo ur yo

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

38

TEXTILE VALUE CHAIN | Jan 2015

www.textilevaluechain.com

TEXTILE VALUE CHAIN | Jan 2015

39

MARKET REPORT

www.textilevaluechain.com

COTTON REPORT Mr. Manish Daga COTTON GURU™ INDIA Arrivals: Q # < ? up pace and remain well over 0.2 million bales per day. Current daily arrival is about 0.22 million bales. Major arrivals are in Gujarat 45000, Maharashtra �[[[[$Q X # �[[[[$€ ? Z[[[[ #" Q  # the new season. Weather: There have been reports of rainfall in parts of Maha # $ € ? Q X # # % q#"

Domestic Market Summary: India’s domestic cotton prices have increased marginally as most of the cotton continues to be procured by the Cotton Corporation of India (CCI) under the minimum support price (MSP) provision. Till date, the CCI has procured about 2.5 million bales of cotton. The CCI is ex Ž # \†[? % < ; \Z$[[[ ~" Z }! " Q q � q is going to the private ginners which have created a shortage of physical cotton in the short term. Farmers are reluctant to sell at current prices, as their agriculture input cost and crop losses are not covered. There is a reasonable demand from mills and some demand from exports as a result of appreciat }! " !

# # % # age and lower yarn demand. CCI Cotton Procurement As On 14th Dec 2014 Estimated at 24.55 Lac Bales. Yarn: Prices of cotton yarn were stable in this month, but the demand remained slack. The depleted cotton and polyester prices have compelled many mils to reduce prices, thus ## # #" ~ is very limited and price-bound. International Market: Cotton is making repeated attempts to move higher on the ICE Exchange. The current price consolidation activity of the US cotton indicates excellent demand for 40

TEXTILE VALUE CHAIN | Jan 2015

quality cotton. The Chinese continue with their reserve policy, but it is expected that they will sustain an orderly approach to moving cotton from their reserve and avoid any crash in pric #" # # q % ~ }! Q # #" Q # $ % ? # q # # # #q # # # q # " Pakistan: Q # X ? # =

# Q## X =Q $ # # about 12.15 million bales (155 kg each). Production is expected to be 14 to 14.5 million bales whereas consumption would be 15 to 15.5 million bales. Export may be about 0.5 million bales and import of 1 to 1.25 million bales. D~ X =Q # # # that government should not purchase cotton at abnormally high price of Rs. 6864/ maud. Instead, it should purchase all grades of cotton at market rates but the volume of procurement should not be less than 2 – 2.5 million bales, so as to genuinely support the cotton growers and ginners. China: Q# # % q$ ‚# tories at the end of 2014 are expected to be 58 million bales, % % }! Q‚# # ÂŽZ " # ?# # # ? \Â?\‡ % # # \ŽŽ‡" # ~ # ¨ ` # government’s subsidy of 2000 Yuan/ton will render cotton less competitive than other crops such as grain and rice. With crop estimated at 30 million bales, China is most likely to lose its title as the largest producer of cotton to India. China im  Z\[[ # $ \Z"^‡ # $ % ^†‡ q " U.S.: Market continues its range bound trading between 58 and 62 cents/lbs. Nevertheless, a price rally is expected % “ ÂŒ " ~ # †]‡

$ Â? q †\‡" # a buying interest from 15 to 20 countries indicated good demand. US cotton farmers are increasingly moving cotton to the CCC loan program, further widening the shortage of quality cotton required by overseas consumers. Question For Farmers:- Will you continue to cotton crop or shift to next crop in current Kharif season? Facebook Replies:\ X # Q% & # ¤ < #% future I will never grow cotton. I will go for soyabean which has low labour cost. Everything can be done with machine from planting to harvesting. 3) Jarnail Kaloia (Xylem Seeds Pvt. Ltd, Srinagar, Jammu and Kashmir):- Especially farmers growing cotton in the kharif season decided to reduce the area next year. 4) Muhammad Haris Pur( Pakistan farmer) :- Similar situ-

www.textilevaluechain.com MARKET REPORT COTTON REPORT ation here in Pakistan. Farmers will be compelled to reduce the cotton area next year. 5) Kuldeep Patidar (Madya Pradesh farmer):- Situation is really worst for farmers. Every crop has same scenario. I will " ; # Š # # q # q q " # # #$ ' $ # $ tion, spray, labour, harvesting, electricity bill etc put a heavy #" % & q X # is INR 1400/ quintal. We can save very less after covering our expenses. ÂŽ X ` q ?¤ Q # # stock will be updated. The scenario would be slightly clear

q " X # % % % # ? % #" < q Q " ˆ Q = X ` ¤ < % % q ZÂ? #" # q % # \^ #" % # Z[‡ q % # Z[‡ # q % # # # # q " = # q # # # % with no other option but to grow cotton. Cause of Ginners: Cotton Ginners are a very disturbed community in this season. In spite of good arrivals, they do not have access to seed cotton due to extreme disparity. Rates of seed cotton are high and prices of seeds and ready bales are %" Q # $ # # # ~ #" Q q$ q # ## # incurred at the end of last season due to sudden collapse of Z[‡ # ? ][‡ ket. Cause of Mills/Spinners/Exporters: On request, we will provide gist of the current test reports of various states, # # # # #$ #

# ~ ers so that they can easily identify their sources of supply of � � q # #" Q # $ � # < ‚# Ginners will be forwarded based on the inquiries received with reference to the test reports. This will facilitate good # %

# q #" Q # $ # # <! # q % # # # # ‰ ‹ #"

Important Reports: USDA: % ‚# # ~ #¤ }!$ < $ Q # $ }' ? # $ > ' # ˆ[‡ na’s imports last season. With China forecast to cut imports by half this year, the impact on these exporters is expected to be # # q # " India is expected to bear the brunt of falling imports by # # ~ # # q q Â?[ ‡" < dia’s exports to the Chinese market increased sharply when

China was buying domestic cotton for the state reserve. Indian cotton is a ready substitute for Chinese and, in addition, its % % # ^[ ‡ in 2013/14. This year, India’s higher prices are likely to pre # #" Q# # $ < % # maintain its share in the shrinking Chinese market and stocks may rise sharply. Q # # ? % nearly two-thirds of its exports going to China last season. Q Q # # ? $ ferred by Chinese mills, a dramatically smaller crop will limit exportable supply and as a result exports are forecast to drop

q q ^[ ‡" # #$ # # ?# # fall sharply. }!$ > ' $ }' ? # % ## on the Chinese market in 2013/14and will see proportionately smaller decreases in their 2014/15 exports. In fact, for > ' $ % # $ ~ # forecast to rise on larger supply and shipments to other destinations. For 2014/15, world ending stocks are up slightly as lower consumption more than offsetting reduced production. Total trade is down marginally. U.S. production and ending stocks are down. The midpoint of forecast range for the season average U.S. farm price is raised 1.5 cents to 61.5 cents/pound. _`qz q{ * > | Major Exporters: smaller crop. Major Importers: support program raises domestic prices. ! " # $ % ! & &'

ICAC: > # # \Z ‡ $ # ~ \ˆ ‡ ! # $ % # # ? > ' $ Q # ! š D # Q " Q < Q ‚# # $ # # % \Z ‡ ] #$ % # � # # # ! # $ % % #" Q## ing an average yield of 853 kg per hectare for the region, pro # \ˆ ‡ Z"Ž #$ % # \[ ‡ ~ % Z[\^ \�" TEXTILE VALUE CHAIN | Jan 2015

41

MARKET REPORT

www.textilevaluechain.com

COTTON REPORT

> ' # ## # # # # # # q % # $ rent prices do not cover productions costs and area is forecast \] ‡  †�$[[[ #" Q## q \$�ZZ ? $ > ' # ` at 1.5 million tons. Q # # # q duced irrigation supplies. Cotton area is forecast to be down 28 ZˆZ$[[[ #$ ]� ‡ �ˆ[$[[[ #$ < Q #"

\†[ ? # # $ # # ^[�"�[ ? #" Q Q< $ < ‚# Z[] \^ # ^[†"Z� ? #" lower cotton harvest in the current season compared to last year is due to slight decline in productivity in Gujarat, a lead # q" Q< ` # = ` cotton crop this season at 122 lakh bales, as against last year’s production of 129.25 lakh bales.

Government Reports Gujarat govt announces INR 11000 millions relief for farmers:

ƒ ! D # Q $ # ` † ‡ \"^ #" % $ q # ? q Ž ‡ Z]† ? $ # ]Z $[[[ #$ % Z ‡ Z[\] \^"

Gujarat government has recently announced INR 11000 million relief package for farmers. It includes INR 5000 million relief in electricity bills and INR 6000 million relief in in # # �[‡ % "

Meanwhile, world production is projected to remain sta ZŽ"Z # # ] ‡ # ]]"† million hectares. India, China, the United States and Pakistan ~ ˆ[ ‡ # $ % # ` # Z ‡ Z] # % % q # # ^ ‡ " Q \ ‡ Z[\] \^$ % # # ~

q ]"ˆ ‡ Z^"^ #$ < Q # #" � sumers of cotton in 2014/15 are likely to be China, India, Pakistan, Turkey and Bangladesh. Lower domestic prices and government incentives are helping the spinning industry in China to recover with consumption forecast to increase to nearly 8 million tons. India’s consumption is projected at 5.3 million tons, which is the third consecutive season of growth, but at a slower rate than the previous two seasons as yarn demand from China is falling.

Q# # $ = ` % \Z # of cotton this year. While each year bales were exported to China and other countries, this year those countries have witnessed fall in demand of cotton and they have enough stock which has resulted to lower global purchase.

< Z[\] \^$ # q Ž ‡ reduction in Pakistan’s consumption, and electricity still re # " < # # # # # Z ‡ Z"] million tons in 2014/15. Consumption in Turkey is projected ^ ‡ \"� # Z[\^ \� % # > # q # \ ‡  �^$[[[ #" ton trade is forecast to be downwards by nearly 1 million tons †" #$ % # # # # which world imports have fallen This is in line with the fall in China’s imports from over 5.3 million tons in 2011/12 to less Z # Z[\^ \�"Q# ‚# # $ imports outside of China have grown. However, the rate of growth has declined. In 2012/13, imports outside of China in # q \ ‡ �"Z # % Z[\^ \�$ # # ` ~ ^ ‡ �" tons. Bangladesh, Turkey, Vietnam and Indonesia are expected to be the largest importers outside of China in 2014/15.

Cotton Association of India (CAI): Q## < Q< # % % q vised India’s 2014-15 season cotton output to 402 lakh bales 42

TEXTILE VALUE CHAIN | Jan 2015

This year, government will pay half the electric bill from its exchequer (which comes to INR 5000 million) to give relief to farmers. Maharashtra Government announces INR 70,000 million packages for drought-hit areas The state government will repay crop loans taken from licensed private money lenders. Nearly 0.5 million farmers from the affected areas have taken such loans. Maintaining % # q % ? q$ & # # < ; ^[[[ % # " Q ]$[[[ tankers will be deployed to supply water in drought-hit villages till the situation improves. The electricity bills of farmers of drought-affected areas will be waived .The government will also ensure uninterrupted power supply to the farmers and will waive their electricity bills for the September-November quarter as a temporary arrangement. & # # ## % q# raise cotton productivity. COTTONGURUTM is of the opinion that there should be a provision of long term planning in agriculture. We have to develop such infrastructure for future where we will not have to face drought-like conditions.

www.textilevaluechain.com

COLLEGE FOCUS

ABOUT CENTRE FOR TEXTILE FUNCTIONS, MPSTME, SVKM’S NMIMS.

Technical Reports: 1.

ICE COTTON

ICE Futures are trading weak on all time frames, however technical indicators does suggest a fair chance of short term

�ˆ #" ! % q# �ˆ Ž† # " & ? q Ž† % �ˆ #" € q ! # �†"ˆ^ �Ž"†Z ��"��$ € q ; # # # 62.20-66.05-66.62.

2.

MCX COTTON

MCX Futures are trading weak on all time frames, however technical indicators does suggest a fair chance of short term

\��[[ #" ; \Ž†�[ \Ž  [ # expected in next few weeks. Traders can look to cover short term shorts. Strength in cotton expected only above 16300 #" € q ! # \��\[ \�[Ž[ \^†ˆ[$ € q ; # # # \Ž][[ \Ž†[[ \Ž  ["

3.

ACE COTTON

KEY SUPPORTS 32900-32600-32400 KEY RESISTQ D! ]]  [ ]^^[[ ]^ˆ†[ ÂŞÂ \  ˆZ[[†Z†[Â? # ™ "

!_€&‚# &<&! } # q # per UGC Norms), one of the premier Universities of Higher Studies in India, has completed 33 years of its existence in the year 2013-14. Shri Vile Parle Kelavani Mandal (SVKM) around 80 Years old Pub # # # Vile Parle (W), Mumbai. Narsee Monjee Institute of Management Studies (NMIMS) stands as a large imposing Uni # q %  # ' # # # # ations (Shirpur, Bengaluru and Hyderabad), with an intake of over 6000 students and over 430 full time faculty members. Considering the strong growth potential of Indian textile # q$ ! " Q # X $ ‚ $ !_€&$# &<&!$ &Š &ŠQ # ! # # ed Centre for Textile Functions (CTF) under MPSTME in the q Z[[† # # ? ! " ! # " # fastest developing townships in north Maharashtra adjoining Madhya Pradesh and Gujarat—well connected by road, rail & $ < $ # ?$ _ $ ! Q bad CTF is offering quality professional education/courses awarding diploma pertaining Textile Technologies and its al #" Q< D # # # offered by the MPSTME – CTF. The course curriculum has been highly appreciated and accepted by industry leading to on the job training and meaningful placement of the students into ~ # # ? Q ? < # # Š "$ # < Š "$ q $ & # # Š "$ Š "$ Q Š "$ ! ~ < # # Š "$ > q ; q š ƒ # Ltd., Banswara Syntex, Gokaldas Exports Ltd., etc. Education at Centre for Textile Functions (CTF), MPSTME, NMIMS – India is preferred destination to develop automation in textile manufacturing process and large scale manufacturing. Hence, entrepreneurs have good opportunities to develop industries. To keep pace with national and international market, quality production in present technology is need of the hour. To support large scale manufacturing, there is need for the large number of Textile Technologist to support produc % #? # � #$ '" Industrial Management, Marketing, Finance, Supply chain. Hence, CTF under MPSTME has come out with smart program to create textile technologist with superior practical knowledge of different manufacturing sectors. CTF has collaboration with many Textile Industries. CTF ! # # q # gamuts available on textile manufacturing. Our main aim is to bridge the gap between education and industry and to produce complete student.

TEXTILE VALUE CHAIN | Jan 2015

43

FABRIC REPORT

www.textilevaluechain.com

Report Given by Mr. Kirti Shah, Textile World , Mr. Vinod Chothani, Sudha Mills +

+

+ + +

+

+

+ +

+

; % › ¤ # q # good. Last year 340 lac cotton bales production and this year 404 lac cotton production expected. More crop but no demand. China buys major cotton, but this year not purchasing much cotton, may be getting cheaper and better Â? q q #" domestic demand is also less. ; % ? $ q $ # q Z[ ZÂ?‡ $ # " = # ? $ q # " Q and Mumbai big merchant also cancelled many orders after packaging of fabrics from mills. Merchants are avoiding calls from mill managers, as there is lot of stock in wholesale market and crunch of working capital. & ? # # # # riage season too in 2014. ! % # # ? = q # q processing house. ~ ## % # # $ # # \ " Q % $ ## # $ merchants are not in good mood. Š ## # $ # # q q day in the city, many now selling dress material instead of # # " Q# % # # % # piece, so not matching require for new sarees. Though, only for fancy blouse piece is in demand. 2X2 blouse piece q Q šX q ? # ? " X # " $ $ $ satin, dobby weave, many other varieties with digital printing have a good demand. ! # # q ˆ \Â? stock, not ready to pick new stock. ÂŒ ## š # q dress material worth Rs. 240, which have good sales in market. Jetour don’t have much demand for other fabrics, so weavers not made new designs. One company bankrupt in jetpur worth rs. 6 crore. = ~ # $ # $

q # " Q # q $ so there are lot of export reject garments in the market.

+ +

+ + +

+

+

+

+

+

+

Mills now directly dealing with exporters, as exports need and use only mill fabrics. But mills only work with advance payment. < ? " & q # happen in the market. > % % # # which used in ladies gown have good demand throughout the year. X ? " @ q ?# #" < ? % $ # % q $ $ # % # q" Q# % fabric have colour fastness issue. > # # # q \� Z[‡$ # # demand in the segment. Semi wholesaler giving payment after 6 months and not ready to take any new stocks from ? " ? š ` ~ $ # in the domestic market. Q $ ? # # the bills, if not revised, clothes return back to the seller. Q ‚# % ? # # lem. ## q unit, then for secondary treatment it should go to common " > % ## % # $ # Z[ units have closed by government. But after bank guarantee, they started running now again. This all units are old so they don’t have space to do secondary treatment. & ? # % q # ~ q %" > q Z[\� " Q# make in india concept should be truly inculcating in the India & ? # % =! = # š ! ~" =! #

\# Q Z[\Ž$ ƒ Minister asked state minister whether to implement from april – May 2015. < q š # q % $ # Ž�‡ population in India is between 20 to 35 years who are willing to work for nation, developing trade, business. Youth have potential to project their skills, implement new and fresh ideas.

PRE SHOW REPORT ! D ‚# 11th International Conference to be held in & Z[ ƒ $ Z[\� ! q q # # # D q ! D $ < #

# 11th International Conference with the theme: “Innovations for Sustainable Textile Production‌ Con #‹$ Q q $ # ƒ q$ Z[ ƒ q 2015, at The Lalit, Sahar, Mumbai, The event will start with X # ## $ q q D Textile News, UK- Mr. Brett Mathews. This panel will bring together representatives from Brands, Chemical companies, Garment manufacturers, Machinery manufacturers, Laboratories and Textile Processors. Speakers of global repute will be 44

TEXTILE VALUE CHAIN | Jan 2015

sharing their knowledge at this conference in other technical sessions. Participation of complete textile supply and value chain and International brands along with presentations from wellknown international speakers on contemporary technical topics makes Vast networking opportunities at the event would

#" & # Q $ % % ~ q # # come forward as the Gold Sponsor for this event and many other International companies as sponsors are expected in the near future. ƒ #$ ? q ¤ & #" _ # ? # ™# " " $ %%%"# " " ?

www.textilevaluechain.com

TEXTILE VALUE CHAIN | Jan 2015

45

TEXTILE MACHINERY

www.textilevaluechain.com

India ITME Society creates a new business platform for Textile Engineering Industry – GTTES 2015 (20th to 22nd January 2015).

By Mr. Sanjiv Lathia, Chairman, India ITME Society Textile machinery manufacturing in India started in the post independence era. The TEI in India has grown in accordance with that of the textiles and clothing # q" Q# ~ # q # $ TEI also taken up the production of machinery required by # $ the woollen sector and even the jute sector. Today newer opportunities are knocking at the doors of textile engineering industry in terms of growing demand of textile machinery in the domestic market and also exports to # % # # textile producers. Currently, the Indian textile machinery industry engages \^^Ž # % ˆ[‡ # ers. With 598 units manufacturing complete machinery and 848 units parts and accessories, the industry produce machineries include weaving machine, spinning machine, winding $ #q $ ~ # # # etc. The industry provides direct and indirect employment to over 250,000 people. The level of technology and quality of Indian textile machinery has been improving steadily. In case of spinning, India is at par with international technology levels. Though in weaving and processing India has a long way to go, here too there has been a lot of improvement witnessed in the recent decade. Still the performance of the Indian textile machinery industry is far from satisfactory. Competition from high tech ma q D ! D # Q# # # challenge to the very existence of this industry.

Q # q # % # %

\�‡$ # q # ? % % # " % Q ` gy, High speed circular knitting machinery (Microprocessors), warp knitting, high speed wide width processing, special pur # ## # q$ # stitching /sewing machinery etc. However, the above gap also provides an opportunity for collaborations for international companies. There is also an excellent opportunity to set up manufacturing base in India particularly in weaving and processing.

46

TEXTILE VALUE CHAIN | Jan 2015

The recent trend of exports of textiles machinery manufactured in India shows a high growth rate of more than 30 › ~ # nancial crisis. This provides enough indication that the textile engineering industry is not only ready to continue its effort to remain competitive in the export markets but also is gearing # # ? # " Q ~ q dustry will not only support indigenous textile industry in its accelerated growth path but will also cater to the requirement of the neighbouring countries. Q # ~ # q %$ pete and export would be able to provide strong support to Indian textile industry. It is well known that TEI has made a # % ~ tile spinning sector. With correct government support and policies in place, India has potential to be a manufacturing hub of textile machinery, parts, components and accessories and match the demand of the Indian textile industry for high tech machinery. The scope and opportunity in Indian market is unfathomable with only a small portion of the potential tapped till now. World-renowned manufacturers of textile machinery have strong presence in India, indicating a strong buyer’s market and long term opportunity in urban as well as regional markets in the country. Thus, modern machinery and equipments are in high demand in all segments of textile industry in India making it an excellent market for textile engineering companies. Price competitive products are in high demand especially in rural markets of India. Keeping the excellent future opportunities in mind, India ITME Society has launched a new platform for encouraging modernisation, technology transfer, infrastructure develop $ # $ ` # % # ments. Global Textile Technology and Engineering Show to be held from 20th to 22nd January 2015 brings a single window access to all above. GTTES 2015 will create and facilitate multiple joint ventures, more business for selling agents and # # # #" Q % % ~ industry will emerge out of this special event held in India. GTTES combined with India ITME series together will be a catalyst and push the industry forward at a faster pace and provide access to modern technology, new markets, new opportunities and customers without a long gap. India ITME Society, has always strived to create events where the focus is not just bringing exhibitors and visitors under one roof but create conducive business atmosphere and facilitate customer connect globally.

www.textilevaluechain.com

APPOINTEMENTS

NEW APPOINTEMENTS IN THE INDUSTRY " ; ?# #]† q # # ~ ence & profound knowledge of manufacturing Technical Director at SuvinAdvisors Pvt. Ltd. &product innovation. The association makes ! # ~ # $ % # ~ % < Z[‡ q q ? # ' • ]Ž

q Z[\Ž \†" % # ~ #$ < # ? opportunities to invest into this sector & they need complete solutions from market strategy, technology # ` " " ; ?# ‚# ## % ! % the entire value chain of the textile industry. Dr. Anupkumar Rakshit joins as a

! # ~ # # š ~ #$ # # ing, Market research and Business development of new products, project management for setting-up new plants, implementa � q #q# #$ # qš � #" # ^Z ; # X # š Q ticles against his name covering entire gamut of textile industry. He has presented more than 20 papers as speaker or chairman X # ## # # # ' q <<$ < < # ~ ## #" # # ] # # # his credit.His association will certainly bring great value to Suvin as well as to the entire textile industry. ITAMMA NEW PRESIDENT

Mr. S. Senthilkumar - President

& ! ? # & ! & q X Š < = Œ _ a well known manufacturer of Simta Jacobi Travelling Cleaner, Bobbin Transport System, Spindle tapes, ƒ ? ; # ~ < # q" # X # !<& Q = % # % Z� q # " Q # < š < # q$ š # ! < # # Q## ## " Œ % < Q&&Q \� q # ? # & \] q #" # # X_ % % # % %#"

Raymond Limited appoints Mr. Gaurav Mahajan as Group- Apparel q‚# # # X ? Q $ X #$ X ~ q $ ; q q % " X ` ; q $ & ` % # $ Q Q Group. The Gautam Singhania—led group is looking to aggressively scale its existing brands and also venture into newer categories with a view to establishing itself as the leading house of lifestyle brands in the country. Obituary Note

Late Shri. mit K. A hah

S

Every generation has men who leave their footprints on the sands of time, and act as beacons of light. Q ! % # # " ! Q €" ! $ q % # ? % # Q ~ fraternity all over the country. Q ‚# # # Q## # # " Q % # # # Q $ ?# # ## % # try in this city. Q % # ## % < ~ Q ## # š & q & #‚ Q## % #" % # # �] X # Q## q Z[[ˆ [ " % # # # # Q## # # ##" < # # #q # # q # # < Q&&Q$ & # D #› q # š # # % Q## " < Q&&Q # & } % < ~ Q## ‰ D&!Q ‹ # X # # " % # _ < < &D ! q q Z[[ˆ [ " % # # & q Q## tions, including Gujarat Chamber of Commerce. TEXTILE VALUE CHAIN | Jan 2015

47

MARKET REPORT

www.textilevaluechain.com

January 2015

SHOW CALENDER

INDA Nonwovens Training Course

7-8

20

Place : Mumbai/ India, info: www.tecnitex.in

11-13

Vibrant Gujarat Summit

24-26

9-12

9-10

Filtech 2015 Place : Cologne/ Germany, info : www.filtech.de

Place : Ahmedabad/ India, info : www.vibrantgujarat.com

11th SDC International Conference Place : Mumbai/ India, info : sdc@sdc.org.in

TEXFAIR/ Farm to Finish,

5th international conference on Digital Textile Printing

Place : Coimbatore/ India,

Venue : New Delhi/ India,

info : www.simamills.org

info : www.inkjetforumindia.com

VASTRA 15 Place : VJTI/ Mumbai/ India \ info: www.vastra2015.net

26

March 2015

1-3

Domotex Russia Place : Moscow, Russia, info: www.domotex.com

14-17

Heimtextil 2015, Place: Frankfurt/ Germany,

4-5

info : www.heimtextil.de

Nonwovens for High-performance Applications, NHPA2015 Place : Cannes/ France,

17-20

Place : Hanover/ Germany, info : www.domotex.de

17-18

info : www.intnews.com/NHPA

Domotex 2015 12-13

TAI- VIDHARBH

info: www.homefashionindiaweek.com

Place : Nagpur/ India, info : taividarbhainfo@gmail.com

18-20

12-13

TEX WORLD

International Conference on Fashion and Textiles Place : Jodhpur/ India, info : www.nift.ac.in/jodhpur/icft

Techtexil Middle East Symposium Place : Dubai/ UAE, info: www.techtexil.com

19-21

Home Fashion India Week Place : Mumbai/ India,

12-14

F & A show / HOMTEX 2015 Place : Bangalore / India,

Place : New York/ USA

info : www.fnashow.in

info : www.texworldjan2015.wyndhamjade.com

18-20 20-22

GTTES ( Global textile Technology & Engineering Show 2015)

Infashion 2015 / India Fashion Forum Place : Mumbai/ India, info : www.indiainfashion.com

Place : Mumbai/ India, info : www.india-itme.com/GTTES2015

28-29

20-22

National Garment Fair by CMAI

Textile Expo 2015 Place : Surat/ India, info: www.textileexpo.in

Place : Mumbai/ India, info : www.cmai.in/cmai-fairs-events

20-22

Hometex Tech, Place : Panipat/ India, info: www.essentialmedia.biz

28- 30

Tex Trend Place : Delhi/ India, info ww.textrendindiafair.com

23-25

1st Annual cogress of smart material 2015 Place: Busan/Korea,

31

Non woven Symposium

info: www.bitcongress.com/wcsm2015

Place : Mumbai/ India, info : www.ittaindia.org

February 2015 4-7

The Dhaka International Textile & Garment Machinery Show

April 2015 9-11

Technotex Place: Mumbai/ India, info: www.technotexindia.in

Place: Dhaka, Bangladesh,

6-9

Info: www.bangla-expo.com/DTG

May 2015

KNIT TECH 2015 Place : Tirupur / India,

22

Place : Mumbai/ India,

info: www.hitechtradefairs.com

13-15

Global Textile Congress Place : Bangkok, Thailand, info: www.textileassociationindia.org

International GOTS Conference info: www.global-standard.org

June 2015

4-6

Non Woven Tech – Asia Place : Ahmadabad/ India, info : www.nonwoventechasia.com

48

TEXTILE VALUE CHAIN | Jan 2015

www.textilevaluechain.com MANUFACTURING FOCUS

LEAN MANUFACTURING : KEEPING TEXTILES SUSTAINABLE

The textile industry is heading towards a crag of Environmental and Social imbalances in the near future. Seeing it coming, Raymond will sustain to be on top of the texMr. Harish Chatterjee, tile ladder by adapting with the VP- Manufacturing changing dynamics of the textile inRaymond Ltd. dustry. Raymond Limited has always # # # # # terms of productivity and energy conservation. Raymond, is a market leader in Worsted fabrics with three manufacturing units in Jalgaon, Chindwara and Vapi. In the last few years there have been many tough challengesin # ## ' " also saw an increase in prices of raw materials and abridging product life cycles, more rapid changeovers and technology " Q # # # ## q building or implementing the latest manufacturing strategies for sustainability in market. Q ~ < # q‚# # q % the best quality but also to run a balanced plant. We observed a growing number of proximate customers and other manufacturing plants operating under the lean principles. We studied the feasibility of lean principles in textile plant and performed up to a SKU- level analysis. Raymond’s manufacturing plants are vertically integrated and is famously known as “From a ! ‚# ? & ‚# ?‹" < # ## %

# fueled the implementation of Lean principles at Raymond trying to create value through quality and customer satisfaction. In the process of improving the manufacturing process # % q$ # % #

% % " ? % # % % q# # % % ## # # % through TOC, a method which focuses on building throughput and shrink operating expenses of the plant. Implementation of TOC, brought down the Lead times drastically. Our work in ## # # q # ' ductivity. We developed new metrics to track our daily waste per X Q q# # technique based on the concept that how 80 percent of waste is caused by 20 percent of causes. Several root cause analysis were performed to bring out the possibilities of waste generating areas within the plant. Lean manufacturing and textile is about producing the right product in the right time. We developed a Kanban process, a card system to maneuver the material across the plant and our warehouse follows a state of the art system with lean concepts. Heijunka, a production levelling theory was implemented to eliminate wastage of time and this demonstrated a huge rise in the no. of warehouse pickups per day. Raymond’s Lean Success story has been due to striving focus and greater awareness among employees towards Lean Manufacturing. It’s about the goal of every project you take up. Once Raymond picks up a customer order it follows through # % # %# pipeline as per the #" D q q % benchmark and set higher standards in quality and productivity. In this process every employee is accountable and implementation of lean has to be done to the root level.

“Quality is a never ending voyage and Lean Manufacturing strategies must become a part of your daily system‹"

ADVT.

“Lean Manufactur = ~ ' / + no matter what the economic scenario is .�

TEXTILE VALUE CHAIN | Jan 2015

49

www.textilevaluechain.com

50

TEXTILE VALUE CHAIN | Jan 2015

www.textilevaluechain.com

Lycra Knitted Fabrics Manufacturer

Cotton/Poly, 100% Polyester Interlock, Poly/Lycra Jersy 90 Poly 10% Spendex and all types of sports wear fabrics solid and printed

Sri Sri International OFFICE & SHOWROOM

C-107, SECTOR 10, NOIDA (U.P.) - 201038. (INDIA) FACTORY LUDHIANA M.: +91 98760 21115 +91 88009 31506 Website: www.srisriinternational.in e-mail : rajeshmathur@srisriinternational.in TEXTILE VALUE CHAIN | Jan 2015

51

www.textilevaluechain.com

52

TEXTILE VALUE CHAIN | Jan 2015

www.textilevaluechain.com

TEXTILE VALUE CHAIN | Jan 2015

53

Turn static files into dynamic content formats.

Create a flipbook
Issuu converts static files into: digital portfolios, online yearbooks, online catalogs, digital photo albums and more. Sign up and create your flipbook.