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CHAPTER 1
INTRODUCTION
The textiles exports basket consists of Readymade garments, cotton textiles,
textiles made from man-made fibre, wool and woolen goods, silk, handicrafts,
coir and jute.
Textiles and clothing represent the most important sectors of international
trade as it accounts for 8 percent of world exports. For developing countries
it is much more as it contributes significantly to their export basket.
The skill of weaving with deft fingers, drawing patterns and creating designs,
is an art, which has been handed down through generations from father to
son, from time immemorial. These finest gossamer fabrics woven from yarns
of superior finish are now being manufactured more and more on power
looms.
The emergence of powerloom has transformed an art into a modern industry,
producing around 19,000 million meters of fabrics annually and employing
over 7 million of workers. The combination of traditional art and contemporary
modern designs has given a unique character to the Indian powerloom textiles.
The modernisation process undertaken by the powerloom industry has
widened the scope of products such as grey, printed and dyed fabrics and
cotton made-ups in a variety of sophisticated finishes and in a wide range of
widths and sizes. Besides, the industry is now in a position to offer fabrics not
only of cottons but also of rich blends of cotton, synthetics and other fibers.
The process of economic liberalisation has enabled the industry to become
globally competitive, not only in terms of price, but also of quality. It is
therefore no surprise that powerloom textiles worth more than Rs. 44,000
million have been exported to all the four corners of the world, covering not
only the developed but also developing countries. U.S.A., France, Germany,
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Bangladesh, Hong Kong, Italy, etc., have been our major markets, indicating
the directional pattern of exports.
The discerning buyers of these countries prefer Indian textiles, as these
meet their requirements, whether it be in texture, finish, weave, variety, quality,
price, width and size, count and construction, weight, specifications. The
ranges of products offered are magnificent, right from greys to finished
fabrics and to made-ups.
The abolition of the quota regime by 31-12-04 has opened up vast
opportunities for powerloom sector to leap frog in exports.
As on Jun 09, the Indian textile industry is US $ 52 billion (US $ 21 billion
exports; US $31 billion domestic market).
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CHAPTER 2
IMPORTANCE OF POWERLOOM AND MILLMADE TEXTILES
MILLMADE TEXTILES :
The Indian Textile Industry is one of the largest segments of Indian
Economy accounting for over one fifth of the industrial production. The winds
of change have transformed a traditional art to a modern industry, employing
state of the art technology and providing employment to around 15 million
people.
This combination of traditional art and contemporary design has
produced a variety of yarn, fabric, home textiles and other textile products
sought after the world over, with over 9 million hectares under cotton cultivation
and an annual crop of around 3000 million kgs.
India is amongst the world’s largest reservoirs of this popular fibre. In
addition the 80 odd cotton varieties of different descriptions being grown in
India, enables the industry’s produce cover almost every conceivable count
and construction of fabrics in a width of choice.
The process of economic liberalisation begun in the last decade has
seen the industry become globally competitive, not only in terms of price,
but also quality. Modernisation has not been restricted to the installation of
sophisticated processing machinery, wide width looms, autoconers, electronic
clearers, splicers, etc. but also to the adaptation of quality systems conforming
to ISO 9000 standards.
The recent euphoria created in the European markets on eco-friendly
textiles has sent the Indian industry into a flurry of activity to adapt itself to
market requirements. With over 1300 spinning units, over 275 composite
mills and around 1.49 million registered looms, the Indian Cotton Textile
Industry is a force to reckon with.
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IMPORTANCE OF POWERLOOM
Fabrics of yarn counts 6s and above in various widths as well as in
wider widths over 100" are offered by the manufacturers. The fabrics in various
weaves such as plain, drill, twill, stain, oxford, etc., are tendered in various
weight ranges. Although bulk of the fabrics offered is in grey state, the
manufacturers also supply other fabrics such as finished, printed, bleached
& dyed. Besides high value fabrics manufactured on auto looms are also
offered exclusively for the up market. Made up items for various end uses
are available to meet the buyers’ requirements. The major items of export
are terry towels, bed sheets, pillowcases, etc. Considerable attention is paid
to the quality of the products and hence these are comparable to the products
offered by other suppliers.
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CHAPTER 3
PRODUCT CATALOGUE
Product GroupingTextile Category Brief Description
Apparel 331 Knit Gloves
Apparel 350 Robes & Dressing Gowns
Apparel 359 Headwear
Apparel 359 Knit Neckwear
Apparel 359 Martial Arts Uniforms
Apparel 359 Shawls & Scarves
Apparel 359 Pantyhose & Tights
Apparel 431 Gloves
Apparel 459 Body Supporting Garments
Apparel 459 Knit Neckwear
Apparel 459 Shawls & Scarves
Apparel 459 Pantyhose & Tights
Apparel 631 Knit Gloves
Apparel 649 Bra’s & Body Supporting Garments
Apparel 650 Robes & Dressing Gowns
Apparel 659 Knit Neckwear
Apparel 659 Shawls & Scarves
Apparel 659 Pantyhose & Tights
Apparel 831 Gloves
Apparel 833 Coats and Jackets
Apparel 834 Coats and Jackets
Apparel 835 Coats and Jackets
Apparel 836 Dresses
Apparel 838 Shirts and Blouses
Apparel 840 Shirts and Blouses
Apparel 842 Skirts
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Apparel 843 Suits
Apparel 844 Suits
Apparel 847 Trousers
Apparel 850 Robes & Dressing Gowns
Apparel 851 Nightwear
Apparel 858 Neckwear
Apparel 859 Shawls & Scarves
Apparel 859 Pantyhose & Tights
Apparel 859 Bra’s & Body Supporting Garments
Fabric 222 Knit Fabric
Fabric 223 Non-woven Fabric
Fabric 621 Impression Fabric
Fabric 622 Glass Fibre Fabric
Fabric 810 Silk Blend and Vegetable-fibre Fabric
Made-ups 369 Luggage
Made-ups 369 Bar-mops
Made-ups 369 Except made-ups included in Stage 2
and pillow covers, knitted table linen,
shop towels and dishcloths
Made-ups 464 Blankets
Made-ups 469 Except made-ups included in Stage 2
and bed linen
Made-ups 666 Except made-ups included in Stage 2
and bed linen
Made-ups 669 Bags
Made-ups 669 Labels, sacks, tarpaulins, awnings,
tents, cords, laces and needlecraft
sets
Made-ups 670 Luggage
Made-ups 670 Flatgoods, handbags
Made-ups 870 Luggage
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Made-ups 871 Luggage
Yarn 600 Textured Filament Yarn
Yarn 606 Non-textured Filament Yarn
Yarn 607 Staple Fibre Yarn
Yarn 800 Silk Blend and Vegetable-fibre Yarn
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CHAPTER 4
TEXTILE POLICY
PREAMBLE
Perceiving the role of the Textile Industry in providing one of the most
basic needs of people and the importance of its sustained growth for improving
quality of life;
Recognising its unique position as a self-reliant industry, from the
production of raw materials to the delivery of finished products, with substantial
value-addition at each stage of processing; and its major contribution to the
country’s economy;
Realising its vast potential for creation of employment opportunities in
the agricultural, industrial, organised and decentralised sectors & rural and
urban areas, particularly for women and the disadvantaged;
Acknowledging the tremendous impetus provided by the Textile Policy
of 1985 to the economy, resulting over these years in compounded annual
growth rates of 7.13% in cloth production, 3.6 % in the per capita availability
of fabrics; and 13.32% in the export of textiles; raising the share of textiles to
13% of value added domestic manufacturing of the country; and to one third
of the export earnings of the country,
Taking note of the new challenges and opportunities presented by the
changing global environment, particularly the initiation of the process of gradual
phasing out of quantitative restrictions on imports and the lowering of tariff
levels for an integration of the world textile and clothing markets by end 2004,
and the need for a focussed approach to maximizing opportunities and
strengths inherent in the situation;
Having studied the issues and problems facing the sector, the views
of a wide range of stakeholders, and the recommendations of the Expert
Committee set up for this purpose;
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Deciding to redefine the goals and objectives, focus on thrust areas
and sharpen strategy in tune with the times, the National Textile Policy -
2000 is enunciated as follows:
VISION Endowed as the Indian Textile Industry is with multifaceted
advantages, it shall be the policy of the Government to develop a strong and
vibrant industry that can produce cloth of good quality at acceptable prices to
meet the growing needs of the people; Increasingly contribute to the provision
of sustainable employment and the economic growth of the nation; and
compete with confidence for an increasing share of the global market.
OBJECTIVES: The objectives of the policy are to
Facilitate the Textile Industry to attain and sustain a pre-eminent global
standing in the manufacture and export of clothing;
Equip the Industry to withstand pressures of import penetration and
maintain a dominant presence in the domestic market;
Liberalise controls and regulations so that the different segments of
the textile industry are enabled to perform in a greater competitive environment;
Enable the industry to build world class state-of-the-art manufacturing
capabilities in conformity with environmental standards, and for this purpose
to encourage both Foreign Direct Investment as well as research and
development in the sector;
Develop a strong multi-fibre base with thrust of product upgradation
and diversification;
Sustain and strengthen the traditional knowledge, skills and capabilities
of our weavers and craftspeople;
Enrich human resource skills and capabilities, with special emphasis
on those working in the decentralised sectors of the Industry; and for this
purpose to revitalise the Institutional structure;
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Expand productive employment by enabling the growth of the industry,
with particular effort directed to enhancing the benefits to the north east region;
Make Information Technology (IT), an integral part of the entire value
chain of textile production and thereby facilitate the industry to achieve
international standards in terms of quality, design and marketing and;
Involve and ensure the active co-operation and partnership of the State
Governments, Financial Institutions, Entrepreneurs, Farmers and Non-
Governmental Organisations in the fulfilment of these objectives.
THRUST AREAS In furtherance of the objectives, the strategic thrust will be
on:
Technological up gradation
Enhancement of Productivity
Quality Consciousness
Strengthening of the raw material base
Product Diversification
Increase in exports and innovative marketing strategies
Financing arrangements
Maximising employment opportunities
Integrated Human Resource Development
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CHAPTER 5
TYPES OF TEXTILES
COTTON FABRICS
India is synonymous with cotton. We were weaving cotton before the
rest of the world was even growing it. Ethnic Indian motifs and designs, that
are today the toast of Paris and Milan, hark back to centuries of tradition.
This rich and unrivalled heritage and craft foundation today co-exists
harmoniously with the modern new India, giving Indian textiles the dual
advantage of tradition and technology.
Today, India’s focus is on modernisation in every industry in every
sphere. The Indian cotton textile industry too is in fast forward mode. Plenty
of rapier, airjet, waterjet, automatic shuttle and shuttleless looms of wide
width have been installed; as have sophisticated knitting machines and state-
of-the-art processing machinery enabling the industry to offer grey, bleached,
mercerized, dyed, yarn dyed and printed fabrics.
India has over 9 million hectares under cotton cultivation an annual
crop of about 2720 million kg, a cotton textile industry that encompasses
1543 spinning units, more than 281 composite mills, and 1.72 million
registered looms. Simply put, the textile industry is the backbone of India’s
economy. Textile in India has been a pioneer industry for almost 150 years.
This has created a formidable technological base, fed by a vast reservoir of
highly competent, skilled, trained, managerial and technical personnel.
From preparatory to weaving, knitting, dyeing, processing or finishing
Indian entrepreneurs endeavour to adopt the most sophisticated and world-
class technology at each stage of fabric manufacturing. Greys of every
grade, exported in the form of sheeting, ducks, twills, drills, canvas, poplin,
chambrays etc. Greys accounts for almost 40% of the exports. (1.13 million
square metres worth US $ 325 million), in a range of widths (35" to 130")
and weights (less than 100 gsm to over 200 gsm).
A variety of Processed Fabrics : Technological upgradation has
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transformed this sector. Processed fabrics are available as bleached, printed,
piece dyed, yarn dyed, embroidery and knitted fabrics in a wide range (less
than 100 gsm to over 200 gsm). Last year 60% of Indian cotton fabrics
were exported in the processed form. 390 million sq. meters of printed
fabric (worth US $ 187 million), 141 million sq. meters of piece dyed fabric
(worth US $ 138 million), and 192 million sq. meters of yarn dyed fabric
(worth US $ 188 million) were exported to countries like USA, UK, Italy,
Germany and Hong Kong. ….
Fabrics in every finish: India exports fabrics in a wide range of finishes
(from simple to sophisticated), in varying widths (30" to 118"), and designs
(enhanced by a potent combination of traditional art and contemporary
sensibility). In the form of shirting, poplin, dress materials, jacquard fabric,
satins, voiles ….
Denims in every hue : Modernisation has helped India emerge as a global
player in denim with exports that included popular denim weaves like
chambray, jean weave, twill weave etc, ranging from light weight (4.6 oz/sq.
yd.) to heavier denims (14.5oz/sq.yd.). In colours like indigo dyed sulphur
dyed or dyed in different processed forms like double pre-shrunk, brushed,
acid washed, stone washed and printed.
Knitted Fabrics : India exports a variety of knitted fabrics - plain, pique,
fleece, terry, interlock, ribs, blends etc., as grey and processed, in tubular
and regular form, worth US $ 63 million (Total Quantity : 96 million sq. meters).
Industrial Fabrics : India has an increasing presence in the rapidly expanding
world trade of technical textiles. India has emerged as a newfound source
for the supply of interlining, geo textiles, non -woven and industrial fabrics
with specific applications in spheres like filtration, clothing, protection and
packaging industries.
India offers sourcing solutions for cotton fabrics for every kind of need,
including, small lot supplies. So whatever your budget, and however large,
or small your requirement, you know where to source it from. India. Today
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100% Export Oriented Units cater specifically to the textile export segment,
ensuring ‘On-Time’ delivery.
The textile industry occupies a position of prime national importance
accounting for over one third of India’s total exports. Textiles have the
distinction of being the highest foreign exchange earner for the country.
India exported around 2 billion sq. meters of cotton fabrics valued at about
US $ 1094 million in the year 2000. Cotton fabrics constitute about 32% of
India’s export of total cotton textiles valued at US $ 3646 million. No wonder
that Indian cotton fabrics find favours with designers and garment converters
in 185 countries across five continents.
The fabrics coming in purview of mill made textiles is as given below
for information and reference
Bedticking Grey
Buckram Interlining
Calico Jacquard
Cambrics Knitted Fabric
Canvas Poplin
Chintz Sateen
Damask Sheetings
Dobby Cloth Shirtings
Drills Terry Fabrics
Furnishing Twills
Gauze Voiles
Textiles exports 03-04 US $ 11970 mln (Inc. 8 percent)
Value addition in fabrics and yarns dominated the export product
basket.
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Indian Cotton Made-ups.
India is one of the world’s largest producers of raw cotton (2720 million
kg annually). India also has the largest acreage under cotton cultivation.
This has provided the labour intensive made-ups industry with one of
the world’s most abundant supplies of fibre, yarns and fabrics (furnishings,
sheetings, canvases, drills, chintz, jacquard, satin, dobby cloth et at).
With a collection of made-ups that range from the simple to the
exquisite, from the basic to the exclusive. Bed linen, kitchen and table linen
that are a feast for the eyes. Home furnishings that are at home in apartments
as well as mansions.
The threads of India’s cotton industry go back to many centuries. India
was using cotton before the rest of the world was even growing it. This
industry is a melange of the ancient and the modern. Highly creative craftsmen
with innate skills in embroidery, lace work, and quilting, have greatly benefited
from the installation of state-of-the-art wide width weaving and printing
facilities.
With abundant growth of raw cotton, and state-of-the-art facilities, the
cotton fabric exports can now be bettered. The good news is that India can
now cater to any demand from any part of the world.
Today, the Indian cotton industry is a force to reckon with,
Modernization, the IT boom, growing foreign investments. The march
towards modernization, India is on the cusp of a revolution. The Indian cotton
textile industry isn’t lagging behind either. One of the most vibrant segments
of the new look dynamic Indian cotton textile industry, is cotton made-ups.
Ultra modern plants for continuous dyeing, bleaching, and printing have
accelerated India’s emergence as a global major in all kinds of made-ups.
Including printed bed-linen, bath towels and soft touch towels. Of course,
this modernization has not been restricted to the installation of sophisticated
machinery alone, but also to the adaptation of quality systems conforming to
ISO 9000 standards.
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India manufactures and exports a wide variety of made-ups, which are
at home in many a home and spruce up many an office in several parts of
the world. These made-ups range from the very simple to the really exquisite
and include wide variety of bed, table, kitchen, toilet and other home
furnishing items.
MAJOR MADE-UPS EXPORTED
Bed Linen Durries
Bags Handkerchiefs
Blankets Laces
Curtains Sacks
Towels Printed Khangas
Napkins Tarpaulins
Pillowcases Non Terry Towels
Shawls & Scarves Duster Cloth
Cushion Covers Table Covers
The major markets for cotton made-ups are USA, EU, Japan, etc.
This gives ample testimony to the ever increasing popularity of Indian cotton
made-ups the world over and reveals the fact that the Indian cotton textiles
industry has adapted itself to meet the ever changing needs of the world
market.
Indian made-ups have made the world sit up and take notice. Fromhigh-fashion jacquards to high-performance feather-proof shell, fromsinglets to king size bed sheets and sheeting’s in a variety of counts andconstructions. India offers comprehensive sourcing solutions for all kinds ofmade-ups both woven and knitted, for aesthetic and industrial purposes.
Indian cotton made-ups have cornered a fair share of glory, in everycorner of the world from USA to Australia, from exclusive department storesto mega-malls. We’ve given Interior designers the world over plenty ofreasons to celebrate and plenty of choice to their specifications and acts asa catalyst between importers and the Indian cotton industry.
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INDIAN COTTON YARNS
INDIA PRODUCES 2720 MILLION KGS. OF COTTON ANNUALLY.India is one of the world’s premier producers of raw cotton with the world’slargest acreage under cotton cultivation (9 million hectares) and with a widerange of cotton staple length, (everything from short staple to extra longstaple). This enables production of almost every kind of yarn and has madeIndia the world’s largest exporters of cotton yarn, 25% OF THE WORLD’SCOTTON YARN.
The Indian Cotton Industry straddles 1543 spinning units, over 281composite mills & 1.72 million registered looms. The installed capacityincludes 36.37 million spindles and about 434,000 rotors. The abundantsupply of local cotton, coupled with the liberalised import of raw cottonenables us to produce yarn to match any specification and count withoutcompromising on quality and at a competitive price too.
India was spinning and weaving cotton before the rest of the world,was even growing it. But today India’s hallmark isn’t tradition, butmodernisation. Everywhere you look, you find a vibrant new India. The ITboom, the burgeoning automobiles sector, the liberalised economy, India isin the midst of a revolution. And this new resurgent mood has rubbed off onthe Indian Cotton Industry too. Over 40% of India’s spindleage capacity isless than a decade old, making it one of the world’s most modern installationsfor yarn manufacturing and making India one of the most contemporaryspinners of cotton yarns.
The installation of state-of-the-art machinery, including electronic cleaners,
auto slavers, splicers, two-for-one twisters, auto-coners, compact machines
has given a big fillip to the Indian cotton industry. This coupled with systems
that meet ISO 9000 standards has made Indian cotton yarn by far the world’s
most preferred yarn. Simply put, India’s great textile tradition has been
transformed by technology, enabling us to meet the diverse needs of
worldwide importers speedily, efficiently, and cost-effectively.
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We have a higher market share in the finer counts between 40s and 160s.
Weavers and knitters the world over look to India for cotton, cotton blended,
grey, bleached, dyed, melange, mercerised, twisted, stretch and coated
yarns, yarns for high value additions, those used for high fashion effects,
specialised yarns for industrial fabrics, and for enhanced levels of
performance on machines, yarn used in home fabrics, apparel, and every
other type of textile requirement. When it comes to yarn India can meet
every order, be it large or small, regular or casual, premium or economy,
fashion or basic.
As for our quality, it has satisfied the most discerning buyers from Hong
Kong, Japan, Europe, Taiwan, Korea, Mauritius, Russia and 180 countries
around the globe. Our world-class testing laboratories enable yarn
manufacturers to meet buyers’ specifications, however stringent they may
be. Count on Indian yarn for every possible count, from the coarsest to the
finest.
Home Textiles
After dismantling of quotas, home textiles - bed, bath and kitchen linen,
have increased in exports from Apr 05.
Export of Cotton yarn:
India is the second largest producer of cotton yarn in the world. Producing
2200 million kgs. per year comprising of OE/Ring Spun/Compacted cotton
yarn in addition to 842 million kgs. of blended/spun yarn to meet the need of
knitting and weaving industries worldwide.
India has assiduously built up expertise in the export of fine, superfine
combed cotton yarn. At present, India’s share of such yarn is 50 percent
and we are expected to grow faster.
MAJOR YARNS EXPORTED Counts from the coarsest to the finest;
Grey Yarns, Bleached Yarns, Dyed Yarns, Fancy Yarns, Melange Yarns,
Industrial Yarns, Sewing Thread, etc. Yarns exported suitable for: Weaving,
Knitting, Braiding, Plaiting, etc. Yarns are exported in the form of Singed/
Gassed, Mercerised, Single, Plies, Carded, Combed, Compact Spun, etc.
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There is adequate demand for combed yarn and finer counts of cotton yarn
( 30s and above) specialised polyester / viscose yarn and finer fabrics in
China. We should strengthen contacts with global buying houses.
Germany has branched out into new areas like technical textiles coveringareas of smart clothing, Healthcare products, Protective clothing, etc.
India should also make textiles as a functional product based on hightechnology being developed across the globe instead of conventional wear.
Technology upgradation is the prime need in post quota trade era. We haveto face pressures from the futuristic trade regime.
Cotton yarn:The Asian nations of China, Bangladesh and Korea are expected to accountfor over 85 percent of this growth. Since China will focus on exporting fabricsand garments, India is expected to become the largest market by 2010,aiming to meet Chinese demands of US $ 3.5 bln per annum. This is basedon Texprocil - McKinsey study.
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CHAPTER 6
EXPORT STATISTICS
Export of raw cotton , not carded or combed covered by ITC HS Code
‘520100’, except ITC HS Code ‘52010020’ has been made eligible to
VKGUY benefit.
Exports of yarn during Apr-Dec 2010 was $ bln 4 (57% growth)Manmade fibres exports during Apr-Dec 2010 was $ bln 2.9 (11% growth).
Textiles Exports - Jan - Jun 08 was US $ 82 billion
Cotton Exports as on Jan 08, makes India a major supplier to the world.
The setting up of WTO in 1995 marks the beginning of a new era in global
trade as member countries committed themselves to enforce the rule of
multilateral trading system apart from entering into reciprocal and mutually
advantageous arrangements for reduction of tariff and other non tariff barriers.
Their commitments have a significant bearing on global trade especially in
textiles and clothing.
India has offered tariff reduction and finding in respect of fibres, yarn, fabrics
and apparel in pursuance of its multilateral commitments. Most of the textile
items have been brought under OGL and tariff rates have also been found
favourable.
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CHAPTER 7
MARKETING
Marketing in case of powerloom and millmade textiles is of utmost importance
in the event of what can be termed as ‘ferocious’ competition between
developing countries including Pakistan, Bangladesh, Sri Lanka, China, and
Hong Kong, which are keen competitors to the Indian exports.
The export of powerloom and millmade textiles from India fails to attract
value addition i.e. the goods exported from here are repacked and relabelled
and sold at an enhanced value while the returns that an Indian exporter gets
is low compared to the margin at which it is sold in department stores or any
other retail mode in other countries.
In spite of the incentives given by the Govt. to boost exports little progress
has been done in terms of promotion of products to achieve a desired value
addition. The volume of exports though high is only in terms of quantity but
very little in terms of value addition .
The marketing of this product is primarily achieved through appointment of
country distributors who would have access to any mode of distribution
channel the distribution channel adopted by the country distributor may consist
of distribution through appointment of sub agent and sub dealers and in
addition direct distribution to mega textile supermarkets and other shops.
Quality is an important factor and generally consumers are very quality
conscious about these products. Usually they go for branded products like
for instance in Singapore John Cooper is a very reputed brand for middle
level people. Other reputed brands include Mark and Spencer, Peter England,
etc.,
Branded items usually are certified either by a specialised inspection agency
or can be certified by the exporter himself in which case a certificate of
compliance conforming to quality specifications must be issued by the
exporter himself.
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Continuous upgrading of machinery and process and sourcing of raw
materials, as an alternate source is important. The quality of raw material
procured determines to large extent the quality of finished product.
Taking part in various buyer seller meets and exhibitions is important.
The major markets for powerloom knitted fabrics is as shown below
The Major markets for Power Loom Millmade fabrics is as shown below
Dubai, UAE
Belgium
Mauritius
Korea Rep.
Italy
U.K.
GermanyBangladesh
Hongkong
USA
BelgiumMauritius
Japan
Korea Rep.
Italy
Germany
U.K.Bangladesh
Hongkong
USA
During 00-05, three million additional spindles and 30,000 shuttle-lesslooms have been installed. New investments of Rs.50,000 crore havecome in textiles and garment sectors in 00-05.
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CHAPTER 8
EXPORT PROMOTION COUNCIL
Powerloom Development Export Promotion Council
www.pdexil.org
Head Office Regional OfficeGC-2, Ground Floor, Gundecha Onclave, 45/11, 1st Floor,
Kherani Road, Saki Naka, Andheri (East), Perundurai Main Road
Mumbai - 400 072 (INDIA) Palayapalayam Bus Stop
[email protected] Erode - 638 011Tamil Nadu.
PDEXCIL PROVIDES EXPORT ASSISTANCE BY WAY OF
Exploration of overseas market.
Identification of items with export potential.
Market survey and up-to-date market intelligence.
Contact with protective buyers to interest them in your products.
Providing your company’s profile to overseas buyers and vice-versa.
Advice on international marketing.
Display of selected product groups.
Arrangement for supply of indigenous and imported raw materials for
export production.
Resolving shipping and transport problems.
Advice on export finance banking and insurance.
Extensive publicity in India and abroad.
Participation in Trade Fairs and Exhibitions abroad.
Deputation of trade delegations, study teams and sales teams to
foreign markets.
Organising Buyer-Seller Meets in India and abroad caters to all your
developmental needs.
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COTTON TEXTILES EXPORT PROMOTION COUNCIL
The Cotton Textiles Export Promotion Council of India popularly knownas TEXPROCIL fosters the international presence of Indian manufacturers/exporters of cotton textiles.
TEXPROCIL, through its extensive promotion drive has succeeded inestablishing the industry as a reliable source of cotton textiles in theinternational market.
TEXPROCIL helps prospective buyers locate suppliers to theirspecifications and acts as a catalyst between the supplier and the buyer.
Each year, TEXPROCIL participates in several International TextilesExhibitions/ Fairs, organises Buyer-Seller Meets and sponsors overseasdelegations, the objective being to inform importers of the latest developmentin the Indian Cotton Textile Industry and build good and healthy businessassociations between importers, exporters and their related representativeorganisations and Chambers of Commerce.
In addition to representing the industry in bilateral negotiations,conducting market research and disseminating information, the Council offersits services to settle commercial disputes through arbitration.
Texprocil was established in 1954 and headquartered in Mumbai. TheCouncil today has about 8000 members who include composite mills,spinning units, weaving units, knitting units, process houses, fabricators andmerchant exporters.
Since its inception as an autonomous, non-profit export promotionbody, TEXPROCIL has become the international face of Indian Cotton
Textiles successfully facilitating exports.
For the foreign buyer, it has opened the entire range of Indian cotton
yarns, fabrics and made-ups and has become the one-stop source for it
while for the discerning Indian seller it has brought within reach the
opportunities afforded by the global market. The ever-increasing quantum
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of exports and diversity of markets tapped bear testimony to the success of
TEXPROCIL.
The activities of TEXPROCIL extend to all areas related to the
promotion of exports. Collation and dissemination of information, fielding of
trade enquiries, administering quotas, facilitating an interface between
domestic manufacturers and the global market and settling of disputes are
some of the activities of the Council. The details of the activities are listed
below:
Premier Prepository of information
One of the most important functions of TEXPROCIL is the collection of vital
market information and collation of the same. Information with regards to
new products, new ranges, government policies, rules and regulations,
changing trends, quality standards, products commanding greater demand
in the global markets and statistics about the exports of Indian cotton textiles
are disseminated regularly. This not only makes TEXPROCIL the premier
repository of relevant information but also provides the key inputs for both
the Indian seller as well as the foreign buyer in their respective efforts.
Fostering international presence
TEXPROCIL has initiated the process of participating in several international
trade fairs and exhibitions, which has opened a new avenue for Indian sellers
to exhibit their products, field enquiries and clinch deals. This increased
international presence has changed the face of Indian cotton textiles.
Evaluation of new markets
TEXPROCIL has conducted studies in far-flung markets to gauge the
potential of the same and thereby provide reliable information for the Indian
seller. The Council constantly monitors the European market, which is the
most potential one for Indian textiles, and up-to-date information isdisseminated to the members. Foreign offices in Frankfurt, Durban and Hong
25
Kong has allowed TEXPROCIL to be in touch with the pulse of these towardscreating and maintaining good bilateral trade relations. TEXPROCIL sendsdelegations to various markets on a regular basis.
Advertising & publicity
A well-planned advertising and promotional strategy has helped project Indiaas one of the leading sources for good quality cotton textiles. The effort hasbeen to focus on the obvious strengths and convey them to a wide audience.Presence in relevant media vehicles like fashion magazines, event-relatedpull-outs, India reports and leading trade magazines has helped to makeIndia one of the most sought source for cotton textiles.
An effective aid to the Government
Invaluable help has been provided to the Government of India in the area offraming of policies that have a bearing on the exports of cotton textiles. Thishas helped in the creation and nurturing of a healthy trade climate andexporter-friendly policies which have been the primary reasons for the boomin exports. The roles played by TEXPROCIL in the finalisation of the MultiFibre Arrangement and in the negotiations at the World Trade Organisationhave been extremely commendable.
Efficient quota administration
This is one area that has been admirably handled by TEXPROCIL that hasresulted in maximum quota utilisation and smooth flow of trade.
Bulwark against increasing protectionism
The rise in exports has spawned a spate of protectional measures, amongstthem being the fervent efforts by the European industry to protect their own.Anti-dumping has been one of the first attempts in this direction. This hasbeen followed by anti-subsidy investigation. Texprocil provides its membersthe necessary support and technical advice in countering these projectionistmeasures.
The upward swing of exports
26
Exports of Indian cotton textiles has shown tremendous growth in all
categories: yarn, fabrics and made-ups reaching more than 3 billion US$ invalue terms and covering over 185 countries spanning 5 continents. India
has become one of the world’s largest exporters of yarn for every kind ofapplication from hosiery to weaving. Fabrics’ account for a third of India’s
cotton textile exports. Made-ups from India can be found on the shelves ofthe leading departmental store across the globe. Exports of Indian Cotton
Textiles have become the mainstay of the Indian economy and TEXPROCILhas an important role to play in its continued growth.
MARKETING DEVELOPMNENT ASSISTANCE CODE FOR EXPORTPROMOTION EFFORTSFor details of MDA, please refer to Texprocil’s website.
Texprocil’s post 2004 functioning was studied by McKinsey. All these years,it was overshadowed by managing Quota Regime. The Council is expectedto concentrate on
i) educating trade and industry on various aspects of WTO Agreementsand helping them in dispute settlement cases.
ii) dissemination of world trade trends and measures to increase ourmarket share.
iii) promoting joint ventures, foreign direct investments, facilitatingtechnical and marketing tie-ups with world renown Brands.
iv) Vigorous participations in various Trade Fairs and Exhibitions.
v) Providing a suitable mechanism for resolution of disputes and redressalof disputes relating to import / exports.
Export promotion continues to be a major thrust area for the
Government. In view of the prevailing macro economic situation with emphasis
on exports and to facilitate various measures being undertaken to stimulate
and diversify the country’s export trade. 8.312 Marketing Development
Assistance (MDA) scheme is under operation through the Department of
Commerce to support the under mentioned activities:
Administration of the Scheme
27
The utilization of scheme is administered by the E&MDA Division inthe Department of Commerce, Government of India, Udyog Bhavan, NewDelhi - 110 011. Recognized EPCs on product grouping basis, CommodityBoards and Export Development Authorities are eligible for MDA assistancefor development and promotional activities to promote exports of theirproducts and commodities from India. (Para 10).
MDA budget allocation to recognized EPCs for export promotionactivities including specific special development and promotional projectsare finalized in annual meetings with the respective EPCs, which are chaired,by the Additional Secretary and Financial Advisor (AS&FA), Department ofCommerce. Proposals for adhoc grants for exclusive innovative exportpromotional activities, which are considered helpful to promote exports ofIndian products and commodities are examined by the E&MDA Divisionand decided with the approval of the AS&FA (Paras 10 to 12).
Proposals for reimbursement of MDA assistance to individual exportersfor eligible export promotion activities abroad on receipt of specificrecommendations from FIEO, EPCs, Commodity Boards and ExportDevelopment Authorities in the prescribed verification note are consideredat the final stage and approved by the MDA Committee under the Chairmanshipof Director (MDA), Department of Commerce with Director/Dy. Secretary(Finance), Director / Dy. Secretary from one Commodity Division on annualrotation basis as Members and Under Secretary (MDA) as MemberSecretary.
Proposals for grant of MDA assistance referred to by the concernedCommodity / administrative divisions in the Department of Commerce /Ministry of Textiles, from within the overall allocation decided in the annualbudget meeting with the EPCs and against adhoc grants approved for specificinnovative export promotion activities are examined and approved by theE&MDA Division in consultation with the Finance Division of the Department
of Commerce.
Proposals received from concerned EPCs for assistance to contest
countervailing duty and anti dumping duty proceedings initiated abroad are
considered by a specific committee constituted in this regard under the
28
chairmanship of AS&FA (Para 11).
Assistance to individual exporters for export promotion activities
abroad.
All exporters for bonafide overseas marketing promotion activities to
explore new markets for export of their specific product(s) and commodities
from India in the initial phase are eligible for assistance under MDA scheme
in undertaking following activities abroad:
Sale cum study tour subject to eligibility under Para 4 below.
Participation in trade fair / exhibition
Publicity through printed material
Maximum number of permissible sale cum study tours and / or
participation in fairs / exhibitions are two in a financial year. One additional
activity, either sale cum study tour or participation in trade fair / exhibition in
the Latin American Countries would also be permissible in a financial year.
Recognized export / trading houses by the DGFT would be provided
assistance through Federation of India Export Organizations (FIEO) and
other exporters would be provided assistance through concerned EPCs,
Commodity Boards, APEDA & MPEDA.
Sale Cum Study Tour: Assistance would be permissible on travel expenses
by air, eurorail etc., in economy excursion class fair @90% for exporters
having valid SSI registration certificate and @75% for others including
merchant exporters. This would, however, be subject to an upper ceiling of
Rs. 60,000/- per tour (Rs. 90,000 for LAC region). This would also be subject
to meeting the conditions of Para 3 and as under:
A maximum of two sale cum study tours to a particular country would
be eligible for MDA assistance and exporting companies after availing MDA
assistance two times including past cases to a particular country, have to
29
visit that country, if any, on self financing basis.
The tour to single country or a group of countries shall be with a minimum
of four-nights stay abroad excluding journey period.
Assistance shall be permissible to one regular employee / Director /
partner / proprietor of the company.
Intimation application must be received in the concerned EPC, FIEO,
Commodity Board, APEDA & MPEDA with a minimum of 14 days clear
advance notice excluding the date of receipt of application in the office of
the concerned organization and the date of departure from the country.
The company shall not be under investigation / charged / prosecuted /
debarred / black listed under EXIM Policy of India or any other law relating
to export and import business.
Maximum MDA assistance shall be inclusive of MDA assistance
received from all Govt. bodies / FIEO / EPCs / Commodity Boards / Export
Development Authorities / ITPO etc.,
Participation in Trade Fairs / Exhibitions :
Assistance would be permissible on travel expenses by air, eurorail
etc., in economy excursion class fair and / or charges of the built up furnished
stall, electricity and water charges @90% for exporters having valid SSI
registration certification and @75% for others including merchant exporters.
This would, however, be subject to an upper ceiling of Rs. 1,10,000/- per
participation (Rs. 1,40,000/- for LAC region). This would also be subject to
meeting the following conditions :
A maximum of three participations in a particular trade fair / exhibition
would be eligible for MDA assistance and exporting companies after availing
assistance three times including past cases for a particular fair / exhibition,
have to participate in that fair, if any, on self-financing basis.
Assistance for participation in trade fair / exhibition, wherein national
30
participation is arranged by ITPO / EPC Commodity Board / Export
Development Authority, would be provided if participated in the Indian Pavilion
through the concerned organisation or after getting waiver certificate from
the concerned organisation.
Assistance for travel expenses would be permissible to one regular
employee / Director / partner / proprietor of the company
Intimation application must be received in the concerned EPC, FIEO,
Commodity Board, APEDA & MPEDA with a minimum of 14 days clear
advance notice excluding the date of receipt of application in the office of
the concerned organisation and the date of departure from the country.
The company shall not be under investigation / charged / prosecuted /
debarred / black listed under EXIM Policy of India or any other law relating
to export and import business.
Maximum MDA assistance shall be inclusive of MDA assistance
received from all Govt. bodies / FIEO / EPCs / Commodity Boards / Export
Development Authorities ITPO etc.
Initiated by PDEXCIL, Hitech Weaving Park near Palladam. TN is
functioning for the purpose of equipping powerloom industry to fact up the
post-quota regime competition. Several subsidies are being offered. For
details, please contact PDEXCIL.
The Cotton Textiles Export Promotion Council (Texprocil) has a representative
office/ show room in the US (New York). It is intended to serve as the single
point service centre for exporters who want to reach out to the US market,
which accounts for 20% of India’s textile exports.
Besides servicing the North American market, the office will also explore
market potential for Indian goods in South American countries as well.
31
The Cotton Textitles Engineering Centre Cecil Court
Export Promotion 5th Floor, 26 Mahakavi Bhushan
Council 9, Mathew Road Marg (Near Regal Cinema)
Mumbai - 400 004 Mumbai - 400 039
Tel : (022) 363 2910-13 Tel : (022) 202 1477
(022) 202 1522
No. F, II Floor, 101, Ashoka Estate Jaldarshan Housing Society
'Mount Chambers' 24, Barakhamba RoadOpp. Natraj Cinema
758, Anna Salai, New Delhi - 110 001 Ashram Road
Chennai - 600 002 Tel : 011 331 6168 Ahmedabad - 380 009
Tel : (044) 852 5486 Tel : 079 40 9323
World Trade Centre 'Jayanthi, IInd Floor, Export Documentation
Kolkata - 700 001 48-A S.S. Moorthy Street Centre Building
Tel : 033 25 4541 Tuticorin - 628 002 (T.N.) Wellington Island
Tel : 24587 Kochi North End - 682 003
Tel : (0484) 66 6521
2nd Floor, 593 Cross Air Cargo Complex 10/293 Bungalow Road
Cut Road, Gandhipuram Sanganer Airport Congress Bhavan
Coimbatore - 641 012 Jaipur - 302 011 Ichalkaranji - 416 115
Tel : 23 5587 Tel : 0131 55 0020 Dist. Kolhapur
Tel : 22193
'Mayur Complex' Air Cargo Complex
20 Palaniappa Street International Airport
Erode - 638 009 Authority of India
Tel : C/o 77901 Near Mumbai Airport
Sahar Village
Mumbai - 400 057
Tel : (022) 832 4094
Export of cotton consignments can be cleared by customs only after
verification of the contracts for exports entered into by exporters with
Textile Commissioner.
32
CHAPTER 9
QUALITY CONTROL
Quality control is important at every stage of the production process.
The various types of inspection carried out are categorised as follows :
Raw material inspection
In-process inspection
Finished product inspection
Pack goods inspection
In a textile unit the inspection usually is done on basis of production
batches. Statistical quality control methods are used wherever necessary.
This involves taking of few pieces at random then determining whether the
batch should be accepted or not on the basis of the conformance to
specifications of the respective pieces inspected.
For some countries where inspection by a nodal agency is essential
like SGS for instance. The inspection may relate not only to the quality of
the product but also covers other aspects like the age of machinery, pricing
of the product, cost of raw materials, etc. This is being done to ensure that
there is no over invoicing of the product.
Indian Institute of Packaging usually does packaging inspection. This
is important as many overseas buyers are stipulating this in L/C.
The textile committee has laboratories at Tirupur and New Delhi and
they have received accreditation from National Accreditation Board for testing
and calibration Laboratories (NABL). Accreditation for laboratories at
Coimbatore, Bangalore, Cannanore, Chennai and Karur are under way. Other
laboratories of the Committee will also be accredited in a phased manner.
33
Accreditation offers the following benefits: -
The Laboratory accreditation is the formal recognition by a neutral body
that the laboratory has the competence to carry out the testing of specific
parameters. The advantages of availing the services of an accredited
laboratory are:
Qualified and experienced staff are employed;
Calibrated testing equipments are used for the testing of different
parameters;
Adequate quality assurance system is maintained;
Proper sampling procedures are adopted;
Sound testing procedures are used;
Valid test methods are followed;
Tractability of measurements to national standard is maintained; and
Accurate recording and reporting procedures is adopted.
In Jun 04, a new Institute, Sardar Vallabhbhai Patel Instt. of Textile
Management, was opened in Coimbatore. It is being funded by PDEXCIL,
AEPC and industry majors.
This institute would be developed as centre of excellence in textile
management studies on the lines of IIMs. The courses would focus on
financing, marketing, IT. The need for such an Instt. is felt considering the
fact that manpower for the industry at managerial level continued to be
neglected and the globalised textile trade too demanded change in attitude
among the entrepreneurs about inducting professional managers.
34
APPENDIX
Cotton Textiles EPC Mumbai
Websites worth visiting
http.texmin.nic.in
http.dgftcom.nic.in
http.otexp.ito.doc.gov
www.introcen.org
www.unctad.org
http//sigl.cbc.en.int
http//www.gksoft.com/govt
http//www.tradeindianet.com
http//www.indianconsulate.org.hk
http//www.cottonpromotion.org
CONTENTS
Chapter TOPICS PAGE No.
1. INTRODUCTION 1
2. IMPORTANCE OF POWERLOOM ANDMILLMADE TEXTILES 3
3. PRODUCT CATALOGUE 5
4. TEXTILE POLICY 8
5. TYPES OF TEXTILES 11
6. EXPORT STATISTICS 19
7. MARKETING 20
8. EXPORT PROMOTION COUNCIL 22
9. QUALITY CONTROL 32
APPENDIX 34
0211
POWERLOOM
Students and Exporters must please note that they should check with the
authorities regarding the functioning of any of the various schemes
enumerated in the following chapters. This is because additions, deletions
and amendments to such promotional schemes are quite common.The
general procedure for exports which are common for all export categories
such as documentation, marketing, finance, etc have not been covered
here, as they are given in greater detail in the main course materials.