january 2015 issue

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Suggestions ISA TEXPROCIL SIMA FAITMA TMMA SRTEPC Cover Story : Pre Budget Memorandum ISSN NO.: 2278-8972 | RNI No.: MAHENG / 2012 / 43707 JANUARY - 2015 | Volume 3 | Issue 1 | Pages 56 www.textilevaluechain.com EU- GSP Scheme & impact / Challenges for EU companies for Technical Textile/ Roadmap to Exporter Trade Show / Conference Report Cotton Report / Fabric Report Fashion Forecast / New Appointments Show Calendar TEXTILE VALUE CHAIN JANUARY - 2015 Volume | Issue 3 1

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Cover Story : Pre Budget Memorandum Cotton Report Quality articles..

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Page 1: JANUARY 2015 ISSUE

Suggestions

� ISA

� TEXPROCIL

� SIMA

� FAITMA

�TMMA

� SRTEPC

Cover Story : Pre Budget Memorandum

ISSN NO.: 2278-8972 | RNI No.: MAHENG / 2012 / 43707

JANUARY - 2015 | Volume 3 | Issue 1 | Pages 56 www.textilevaluechain.com

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

Trade Show / Conference Report

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

TE

XT

ILE V

ALU

E C

HA

INJA

NU

AR

Y - 2

015

Volume

| Issue 3

1

Page 2: JANUARY 2015 ISSUE

The Comfort of Competence

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More under www.rieter.com

The complete package for your success Settle back and relax – Rieter off ers all 4 end spinning systems and advises you competently, from the very fi rst 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.

Comfort is: A solution that allows you to settle back cosily.

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TEXTILE VALUE CHAIN | Jan 2015 1

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TEXTILE VALUE CHAIN | Jan 20152

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EDITORIAL

Shri V.Y. Tamhane

Editorial Advisor

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.

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

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

.

With the encouragement, support and appreciation

received from our subscribers, advertisers, well-

wishers 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.

What the organisations of the industry look out

for the forthcoming Budget?

'' There are many paths to the top of the mountain,

but the view is always the same''

TVC Monthly Issue From Now ... !

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JANUARY 2015 ISSUE

In this Issue...

EDITORIAL TEAM

Graphic Designer

Mr. Anant A. Jogale

Advertising & Sales

Md. Tanweer

Editorial Advisor

Shri V.Y. Tamhane

INDUSTRY

Mr. Devchand Chheda

City Editor - Vyapar ( Janmabhumi Group)

Mr. Manohar Samuel

Joint President, Birla Cellulose, Grasim Industries

Dr. M. K. Talukdar

VP, Kusumgar Corporates

Mr. Shailendra Pandey

VP (Head – Sales and Marketing),Indian Rayon

Mr. Ajay Sharma

Ms. Jigna Shah

GM- RSWM ( LNJ Bhilwara Group)

Editor & Publisher

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

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

NEWS

COVER STORY : PRE BUDGET MEMORANDUM

ARTICLES

SHOW REPORT

MARKET REPORT

9 – Government News

10- Corporate News

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)

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.

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

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

Consulting Editor

Mr. Avinash Mayekar

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TEXTILE VALUE CHAIN | Jan 2015 9

Trade Facilitation Centre

The Finance Minister in the Budget

2014-15 announced to set up Trade Fa-

cilitation 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 an-

nounced to set up six more Textile mega

clusters at Bareily, Lucknow, Surat, Kut-

tch, Bhagalpur, Mysore and one in Tamil

Nadu with an allocation of Rs.200 crore.

Varanasi Mega handloom cluster is al-

ready under implementation.

���� ������� ��� ����������� ����

missioner for Handlooms, Ministry of

Textiles is implementing the following

schemes for development of handlooms

and welfare of handloom weavers:-

����������������������������

Programme

(ii) Handloom Weavers’ Comprehen-

sive Welfare Scheme

(iii) Yarn Supply Scheme and

(iv) Comprehensive Handloom Cluster

�����������!�����"�

Under the Comprehensive Handi-

����#��� #���������������!����������

��!�$� �%�� ���� �� #���#� �"�"� &��'� ��

– Bhadohi (UP) and Srinagar (J&K) are

implemented for the development of

Carpet Industry in the State.

Promotion of Chanderi Tex-tile Industry

The Government of India has been

implementing following schemes in all

over India to promote handloom textile

industry including Chanderi –

������������������������������

Programme – two components:

+�;�����$�;��������;�#�� �� ����

(RRR) Package for handloom

sector

+���������#�������������������

ment Scheme

+�<����������������� #����������

������!������<���!�

(ii) Handloom Weavers Compre-

hensive Welfare Scheme – two

components:

+�������<# ����!�������������##�

to health care facilities

+�&����=����> ?���>���@��

jana for life insurance

(iii) Yarn Supply Scheme

Under Integrated Handloom Cluster

����������� !������<���!�$� �� ���

deri, handloom cluster for its integrated

& holistic development was sanctioned.

The cluster covered about 5000 hand-

looms and was developed with Central

share of Rs.2.00 crore. Chanderi hand-

loom cluster was implemented by Entre-

���� �#���� ����������� <#��� ��� ���

<��� �D�<�$� Q������"� <� ���� �� #����

various interventions like upgradation of existing dye house, setting up com-mon facility centre, design & project development, engagement of designer, exhibitions & buyer seller meets, forma-tion of web portal, skill development & technology up-gradation etc. were im-plemented.

� ������ ������� �������������������� ����X�� %#� ����� ���� ��2013-14, having various components, ��� ������#������������� #���#"���� �����Z[\]�\^$�D�<$�Q��������#�����sanctioned consolidation of the Chand-������������� #���� �������X"��

Under Handicrafts, Baba Saheb Hast-#����� _�?#� @�`� �Q�_@�� #�����#� ������������������q����������������������velopment Commissioner (Handicrafts) sanctioned in favour of Bird Charitable Trust, Guna. Under this scheme, 436 ���##� ���� ���� ���������� ���� ���programmes such as skill upgradation & training design & technical development and by way of distribution of tool kits. Three Guru Shishya Parampara Train-ing Scheme have also been organised ���� ��� ������ Q%����� &#����craftsman Shri Tulsi Ram Koli at Chand-eri. Similarly, these artisans are also be-ing provided with marketing assistance ���� ���=����!�����>'�#$������>'�$�Exhibitions and National Level Melas etc. being organised on regular basis at dif-

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).

������`����������������������#���?�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 pack-age of practices through the Central Silk Board (CSB)’s main Research Institute; CMER&TI located at Ladoigarh in Jorhat, Q##�"�}����������q�#��#���������q���� ����������� X�������� ���X��support to farmers are provided for (i) Raising muga food plant nursery (ii) Q ��������������������� ������� ���#� %���� #���� �� ����#$� ������ Q#�sistance for maintenance of existing � �� ����� ������� ����� Q##�#������� � �� ������� #���� �����#$� ���� Q#�sistance to muga private grainures and �����Q##�#���� ����~�#����� ���������grainures for up-gradation of seed pro-

duction capacity as well as assistance for

strengthening and up-gradation of their

seed infrastructure to the State.

�����=���������#������������%�

��������� ��#����'��#�����#��>��

��� ������� >���� ��#�����$� �������$�

��`������ ��#������$� !�??��$� Q����

Pradesh, Madhya Pradesh, Uttarakhand.

���#�� �#������ #���� '��#� ����� ��� ��

��������������#�������� �������Q#�

sam.

The Government through Central

Silk Board (CSB) has taken the following

measures for increasing production of

muga silk:-

� D#����#���� ;������ ������� ��� �!>�

at Guwahati to coordinate sericulture de-

velopment activities with State and other

�����#���Q##�����D�;����"

Goverment News

News

Page 12: JANUARY 2015 ISSUE

TEXTILE VALUE CHAIN | Jan 201510

www.textilevaluechain.com

SAREES MADE WITH DUPONT™ SORO-NA® FIBER: EXCEPTIONAL SOFTNESS, FLUID DRAPE, LIGHT WEIGHT

� X���&��#���������%���������

��� �� ������ ��������q� #���� ���� ���q�

\�[[�#"������������� �����?��������#�

��?�� ���� ���#����� q��$� ������ ���q�

ester, neoprene rubber fabric, elastic Ly-

���$�� �����������������$���������$�

� X���&� �#� ������� �~�������q�

textile products that have transformed

contemporary living.

� X���&� �#� � ����� ��#� ��� ��

���?��$� �������� !����� ������ ���

the Indian textile market in Sarees at a

��������#����#��%�����������������

ber 19, 2014 with a Bollywood celeb-

rity as the showstopper. This event will

showcase a collection by Vipul Sarees,

%����������'�����������������������

Saree segment. This collection, made ex-

�� #����q� %���� !����� �����$� ���������#�

high quality, soft and colorful sarees in

Chiffon, Georgette, Satin and Crepe cat-

egories.

!����� ����#� ]��� ��q�

renewable plant based ingredients by

%�������Z�������#��������

�Q#�#������%������#����� ����X��q�

�#��������! �����\��^����� #��������#�

Ethnic wear, I have seen several innova-

tions 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��%�$��D�$�_�� ���#���#

COTTON USA at Heimtex-til 2015: Purity, Quality and Responsibility

������� }!Q� ��� �#� � �%� ������

campaign at the Heimtextil trade show-

������"�\^�\�$�Z[\���������"[����[���

the Frankfurt Exhibition Center in Frank-

furt, Germany. Heimtextil will mark the

#��������������#��������������#������

���� ���� ���� �%� ������� }!Q����$� �

global brand for quality U.S. cotton prod-

��#"���������� }!Q� ������%���� �#��

serve as an international meeting point

for the entire cotton trade at Heimtextil

2015.

���� �%� ������� }!Q� ������ ���

����������#���������'���������#���

����#�'���}"!"�������#�� ���q$�� ���q�

and responsibility: a natural ingredient

�������q�#��������~����#�����������}!Q�

����� #���$� # � �� #���"Q�� ���� �������

}!Q������$��������� ����<��������

(CCI), Cotton Incorporated and Supima

will provide information about the glob-

al cotton market and sourcing, as well as

about the marketing and promotional

services that the U.S. cotton industry of-

fers.

;�#��#����$���#�����������#� ���

����#���������������������������}!Q�

marketing and licensing program, which

operates globally and offers a wide range

of services. CCI’s Sourcing Programsup-

����#� � q��#� �� #� ����� ������� }!Q$�

from raw material to the end product,

with a focus on responsible cotton pro-

duction and sourcing through participa-

�����������������DQ�!��������"

In addition to the international COT-

���� }!Q� ����#��� ������� �� ��<�#�

Sourcing Program, the U.S. cotton in-

dustry provides a portfolio of other key

services including the Supima licensing

programandtrend forecasts and techni-

cal support from Cotton Incorporated.Li-

��#��#��#�������������������� ������

sight they obtain into consumers, based

�� ���� �����#���� ���������# ���q#�

made available to all global partners.

Q��������~���$���<�%�������#��������

uct samples from the new collections

��� ��������� ������� }!Q� ����#��#�

such as Bassetti (Italy), Caliphil (Tai-

%�$� �������~� �<��q�$� �� ���� !���

(Thailand), Graser Exklusive Bettwäsche

(Germany), Jaspal Home (Thailand), Ka-

ltex Home (Mexico), Kimpeks (Turkey),

��'��~� �= ������$� &�#�� �!%����$�

��#��?%�!�q������$�!��`�'� ��

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

and cause cancer. Unclean water leads to

an increase in many infectious diseases.

Q��������#� ���#�#�����q�# ���#������

faecal contamination of water is lead-

ing to malnutrition in children who are

drinking such water, even where they are

consuming enough nutritious food.

Q�� Q"�"D"$� � �� ������#� ��� ��� #��� ��developing world-class solutions for many aspects of our water problems. We have many smoothly running instal-lations that showcase green technology ����#��#����q"������~����$�� ��QQQ�process generates gas, saves energy, re-duces chemical consumption and greatly reduces sludge. Our screening grit and sludge management solutions from Hu-ber enable sewage treatment plants to work optimally andensure clean and safe working conditions for workers at these

plants.

Corporate News

News

Page 13: JANUARY 2015 ISSUE

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TEXTILE VALUE CHAIN | Jan 2015 11

PRE BUDGET MEMORANDUM

<��������������%����$�����%���������#�����������������������������������������������������> �����&����

randa in the context of forthcoming Central Budget.

����> ���������Z[\��\���#��#������#�������������������~������� #��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���������������������%������#��������#�������]�������������������������

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.

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 spin-

ners and down-stream industry. There is hardly any revenue

implication on removal of these duties as imports are negli-

�����"����%����$��������������#��� ���#�%�������������������&&��

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���&&��

#���#�������� �q��������"��� ��������#$����� ��#������ ��

of MMF become much costlier compared to cotton. This dis-

crimination is hindering the growth of Man Made Textile In-

dustry.

Q#� q� � ��� %��$� !��$� ������q� &&�� ��� �� ���� �� ��

�[�� ��� ���� ����� ������ ��# ������ %����#� �� <��� ������

COVER STORY

INDIAN SPINNERS’ ASSOCIATION

#�����#���##����][�"����������������#�#?�%�����#����$�����#�

necessary to remove the discrimination between MMF and

� ��������#"

Taking into account the revenue needs, we recommend

����D~��#��� �q���&&��#�� ��������� ���������������\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 Fi-bre:

D~��#��� �q���Z���#���������������q�����X!�"��D�����$�

���q�����X!��%#��%q#��~����������D~��#��� �q�� ���������

following reasons:

��� ;��q������������#�� ��� ���������XD���X��q���q��

ene Terephthalate) bottles which have already suf-

����������� �������D~��#��� �q"��<����q�����%���

Page 14: JANUARY 2015 ISSUE

TEXTILE VALUE CHAIN | Jan 201512

www.textilevaluechain.com

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�#�� �����������������������������

������ �������%�� #���#�� �q�������������� ��������

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���� ��������������

(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

THE COTTON TEXTILES EXPORT PROMOTION COUNCIL

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, recy-

cling 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��#�\[�"����%����$�������##����

�����������#������������������#����������q���#��������#��

��"���~�������������������"\Z�Z[\Z��D������\�"]"Z[\Z$�

as amended from time to time.

The textile industry has been upgrading its manufactur-

ing 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 ac-

cessories thereof covered by heading Nos. 8443, 8444, 8445,

�^^�$��^^�$��^^�����^�\����# �`�������������##����� �q�

������%���������#����������~���������#��q������%���������

propriate procedure.

(iv) Exemption Service tax on services rendered abroad

DIRECT TAXATION �� ��������� ������������

���� ���������������#��������������������������

� ����%������#����[�� ��������<������~�Q��"�

� ���#����������#������%���� �������\��"��

����� D~�����������������q���#��Q ��������

textile mills

������ Q����������q����&Q����&��� ��Q����������~���

� &Q��#�� �������~�����������<��#�� �� ���#������

� ���������~��������������#���%��� ����!�������[<Q����

����<������~�Q��"

� Q�����������>��?���##��� �#��������������

tion should be allowed as deduction while computing Book

X�����#� ����#������\\��>"

� Q��� �~����� �����#� ��� ���� ��������� ������

Gains arising on Sale of Investments ( as exempted under

section 10(38) should be excluded while computing Book

X�����#�� ����#������\\��>"����

(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�"�"Z[\[� ��� Z�"^"Z[\\� %��� ����

scheme was suspended . This period may be considered in

the old format . It is further proposed to allocate additional

COVER STORY

Page 15: JANUARY 2015 ISSUE

www.textilevaluechain.com

TEXTILE VALUE CHAIN | Jan 2015 13

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 Cot-

ton 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 cro-

cheted

63049230 Pillowcase & Slip of Cotton not knitted

or crocheted

63049240 Table Cloth & cover of cotton not knitted

or crocheted

63049260 Towel other than terry of cotton not

knitted or crocheted

We would request you to kindly take it up with the Minis-

try 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 sug-

gested 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 ex-

porters 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 re-

fund of all duties /taxes levied by the State Governments and

����������#�# ���#��!�$_Q��$D��q��~�$�&����~�$�D���������q�

� �q�$����� #��q��#������##�����%���������� ����������������

value of textiles . If for some reasons, refunds are not possible

$� �q��������#����#��q���������� ���������������������� �����

exports which can be made transferable and used for payment

of duties on imports of any item freely importable.

OTHER ISSUES ���� � �q�������<����������������#����������#����#���

������#�������������#���#���~����#����������&���

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~����� #� ������##� ����#� ����� ��� ������ �~��#��

duty considering the importance given for the power loom

sector under TUFS and SITP in the 12th Five Year plan.

��������������

<������������������������������#��������~����#�D~�����

������ ��� }!���[� >����� �q� Z[Z^�Z�� #� ���� _�#��� !�����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 consump-

tion scenario will gradually change towards the global pattern

���������� ���� ����'���� ��� ���� �#�� ������ �������� ��

MMF based textile products for export markets as well as do-

mestic market.

COVER STORY

THE COTTON TEXTILES EXPORT PROMOTION COUNCIL

Page 16: JANUARY 2015 ISSUE

TEXTILE VALUE CHAIN | Jan 201514

www.textilevaluechain.com

III) Service Tax

� The credit of service tax paid on erection and com-

missioning 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������������ �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����� !�����'���� � �� !������ ��#�#��

�������������������#�����$���� ����������������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 incen-

tives) 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 re-

ceivable from Government in the books of account/ alterna-

tively such income should be accounted on cash basis.

80IA Deduction for Power Generating undertaking:-

+� X������ �������� ����� �������� ��� ���� &���� ��� �#�

COVER STORY

���������!�������"�#$�'��*+�/�������������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�� ��� ��� ��

&� &��� �����#� �� ��� %���� ������ ������ %���� ���� ��� ��

crease in demand and achieve the above targets along-with

increased revenue.

Further to reinforce our demand for parity in duty struc-

ture, we would like to highlight that in our neighboring coun-

tries like China, Pakistan, Indonesia, Thailand and Turkey

�������#���������������� ���#���&�&������������������

������"��

Moreover with the increase in Excise duty as per the de-

���#����������%$����������q� ����'�����������&�&������

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���

&�&��������#��q������� ���������"��

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�#���� ������ ��� ���� ��� ����'�� ���� ������� � �q� �������

against the duty on output, it is therefore requested that simi-

lar facility of refund should also be allowed to manufacturers

%������ ������� ����'������!Q������������� �q"

!���� ���� ������� ������ ���q��� !Q�� �� ������� �#� ���

�� ���������_Q�$� ����!Q�������q���� ��~��������%����

�!���������Z�"

SIMA- SOUTH INDIA MILLS ASSOCIATION

Page 17: JANUARY 2015 ISSUE

www.textilevaluechain.com

TEXTILE VALUE CHAIN | Jan 2015 15

eligible for deduction from Gross Total Income as per section

�[<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-

�����[<Q"�Q�#�������� ���� ������������ �#��������������

tion already set off in earlier years could not be reduced from

������#��������� �������� ����� ����#�������[�<Q"�

> ������<������~�Q��������#������#�������[<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 deter-

mining the quantum of deduction admissible even though

���q���������#���������#������������#�������������� ����

taking of the assessee.

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-resi-

dent agents outside India is not liable for Tax deduction under

���������#��#����#������\����������<������~�Q��"

In-spite of the various Higher Court decisions ruling in fa-

vour of the assessee on this issue, the department is still disal-

lowing the expenditure of commission payment made to non-

resident agents in the Income Tax assessment.

����� ���� ����� ��!� �## �� �q� ��� ��#������� �� ����

��� �#�������!��#��������������������##����q���#�

to non-resident agents outside India for canvassing of orders

of export sales.

Investment allowance to Manufacturing company under sec-tion 32AC:-

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

+� !���� ������#� %���� ��##� ��� ����� �����#� ������

#�� �������~������������������#�Q��"��X�����#��������

��#�Q���#�� ��������� ����%������#�������������q���~��"

+� ���#� ���� ������ ��� �#� ���� ���� ` ����� ����� #�q"��

�����?���������#������#��#��� ����������������������#���#�

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 non-

availability 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.

Period Basic Excise Duty (BED) %]

Mar 2006 – Nov 2008 8

����Z[[����� �Z[[� 4

Jul 2009 – Feb 2010 8

Mar 2010 – Mar 16, 2012 10

&��\�$�Z[\Z��%��# 12

COVER STORY

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��#������������������#�����\[[��������

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�$������#$����� �#�

�������#��"�"���"�

SIMA- SOUTH INDIA MILLS ASSOCIATION

Page 18: JANUARY 2015 ISSUE

TEXTILE VALUE CHAIN | Jan 201516

www.textilevaluechain.comCOVER STORY

;���<��6+���$����� 6+������

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 :

“Condition No.2

Where such use is elsewhere than in the factory of pro-

duction, 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 manufactur-

ing 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,

�^^�$��^^�$��^^�$��^^�����^�\����# �`���� ��� ��������#�

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�\[��#���"�����������������������

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 mainte-

nance 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��������������#��������#����������q�

and equipmentsIt

3) Working Capital

> �q��� �q� ���� ����� �� ������� %����� ����� ��� � �����q���

low of 2.38 per cent in Sept 2014, the textile industry natu-

rally 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

���������� �#��=���������������������������������#�

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 partial-

ly oriented yarn imported China, which is effective upto 1-5-

Z[\�"

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 texturis-

ing 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 time-

bound 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##������#�

FAITMA

Page 19: JANUARY 2015 ISSUE

www.textilevaluechain.com

TEXTILE VALUE CHAIN | Jan 2015 17

COVER STORY

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, regard-

less of the fact whether the member has paid the subscription

or not.

<�����q�Q##������$����������#����������#�%�����#���

their membership after receiving the invoice. For a voluntary

����'������?��Q##�����������#�����##���������#�#��������

bers to pay subscription on the issue of invoice.

���#� �#�����������#��%�q�Q##������#�#�� �������~�

����������#��������~"�<�$�����q���#�$�� ������������ �#��

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.

�������>���?����76��7���@������������J��*��9

A. EXCISE DUTY :

+�D~��#��� �q����������#������~�����������q�#�� ��������

����������$�������#�� ���������~������"

+�D~��#��� �q���������#$��������#������##����#��������

��~�����������q����������#�� ��������"

+�D~��#��� �q�����~�����������q� ������#�#�������#�� ���

����� ���������������"

Correction: This item should be like

“HTHP yarn dyeing machine complete with or without dye

?�����������##����#�

+�D~��#��� �q������#��������#���������#� ������#����

����#�� ����#���������"

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�������%� ������ �������

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.

Suggestions :

������������

B. CUSTOMS DUTY :

+����������������� #���#�� �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�[������������$�D�������������q$���

Electronic Jacquard (600 hooks and above) for supply along

with shuttleless looms made in India should be at nil duty.

�;��� ��<��������#�����#���#�Q�~ ���<�

+������������� �q����%�������#$����#$��������#�����

cessories should remain less than that on complete import of

������q$� �"�"� �q� ��"� ������ #�� ��� ��� � �q� ����������� ���

tween complete machine and the parts/components.

Suggestions :

FAITMA

�������>���?����76��7���@������������J��*��9�������>���?����76��7���@������������J��*��9

Page 20: JANUARY 2015 ISSUE

TEXTILE VALUE CHAIN | Jan 201518

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.

+�������������������#����� ��� ���#�%� ����#��������

����#��������� �����������<������������������"��

+��������������������������#������������������#�

%� ����#����� ������<������������������"

+��<������� �q���#����������������#���������#����

machinery such as compact spinning attachments, drums for

Q �������%����������#�%�����������������<���#��

��$�#�� ������'����������������� ��� �����������������

machinery to bridge the technology gap.

+�� #���#�� �q�������������!����������;�����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.

+� ���� �������� ��"� �� ���� ������� ��� �������#� ���� ���

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 com-

ponents because the value of th���������#� �#���q�][����

^[�� ��� the total value of the machine-shuttleless looms.

Therefore, when the Government is not putting any ndi-tion 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 per-mission/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 em-

ployment generation.

������������

Suggestions :

Suggestions :

������������

C . POLICY MATTERS:

+�! ���q�����������~�����������q���� ��#� ����DX�=���

EOU status to be treated at par.

Q���� ��� ���� �~��#�� � �q� �#� ������� ��?� ����� �%�����

�?�#� ��\Z� %��?#�� ���� � q��#� ���� ��� � ��#������ ��� � q�

machine locally. Hence excise duty has to be exempted for lo-

cal supplies under EPCG. This exemption should be given as

available for supplies to EOUs to avoid the problem in claim-

ing Cenvat on inputs by the suppliers of Capital goods.

+�Z[[��%����������� �������;����~����� ��� �� �����

by all types of companies and partnership/ proprietary units.

���#�%������� ��������;���#�������q�����&!&D#"

+������������������~�����������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[�����!���\������!�!�����$�

�� ���� ��� ��� ������'���"� ���� =�������� #�� ��� ���

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:

+� !����������������'���$���������q� ���������

and productivity enhancement of the TEI:

It is recommended to launch a TUF dedicated to the Indian

Suggestions :

������������

Suggestions :

COVER STORY

Page 21: JANUARY 2015 ISSUE

www.textilevaluechain.com

TEXTILE VALUE CHAIN | Jan 2015 19

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�� �#����������������?�%���%����������#�#

� Industry segments regarded as weak or non-ex-

isting (rotors spinning, fully automatic winding, high tech

%����$� #������ � ���#�� �����##��� �� ���#���$� ?������

and industrial sewing equipment) should be eligible for up-

�����\[��������# �#��q������������������#������� �#��

ment to upgrade their manufacturing facility.

+� D�� �����#����#���������%��D<� ��#���!D������

��<���������"

A. REDUCTION OF EXCISE DUTY

1. Background 1.1 However current Indian textile sector is not able to

����'������������������� ������~���� ���q����%���

��������&&���'�����~��#������������\Z��D~��#����

MMF) and it has resulted in India remaining the cotton

�#�����~����������q���[����������^[��&&���

and being underrepresented in global trade (leveraged

%�����[��&&����^[��������"

\"Z� �Q�����������~������������#�������%���������������

a perfect eco-system of tax equality among Cotton &

MMF.

2. Future prospects2.1 However with the massive economic development

and subsequent rising labour costs coupled with ap-

preciating 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.

2.2 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 hap-

pened in China during last 2 decades.

Z"]� �<��������������������~������� #��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.

Z"^� �Q��������q������������<���%����������q����������[�

kg/ha will take Indian cotton production to ~9 Bn kg.

Indian cotton is rain dependent and limited agricul-

tural 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.

2.5 This calls for huge investment plan in MMF plant, ma-

chinery and high technology to avert this crisis. MMF

being highly technology dependant has a potential of

>��?�>�����*���?������������������������7�����J����9

y g India China Pakistan Bangladesh Sri Lanka Indonesia Thailand Cotton Nil 17% Nil Nil 20% 10% 7% MMF 12% 17% Nil Nil 20% 10% 7% Cotton Yarn Nil 17% Nil 1.5 Tk/kg 20% 10% 7% MMF Yarn 12% 17% Nil 1.5 Tk/kg 20% 10% 7%

����������������<"�

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

�#���������<���&&��#��������<���� ������������

�����#����������#"�<#����������#���������?���

��������������q���;�����������#�����������#�

like China, Vietnam and Bangladesh which have better

��#��������������&&�"

4. Proposal to achieve $350 Bn Textile Industry by 2025:

�^"\� ��#������������#��������������������������� �

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��������������������~����#��������D�_Q�"�

�������#���� �q����\Z�������� ������������&&��

����#��%�������#$��������������%�������%�����

�#�'����� �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

�������>���?����76��7���@������������J��*��9

COVER STORY

Page 22: JANUARY 2015 ISSUE

TEXTILE VALUE CHAIN | Jan 201520

www.textilevaluechain.com

�� <�Z[[��[�$�����>#���D~��#��� �q��>D���������%#�������������q�#�������� ��#���"�"$�X!�$�X�@$���@$���@�$�%�����%#���#�����q���� �������^�������������Z[[�"����������$������#����������� �q�Z[[�"�! �#��� ���q$�������%#��� ����������#�����\[����&����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 com-pletion of the decade. Further, it may be pointed out that the &��#��q��#�����#�'������������������������&&����~����#�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 prod-ucts. 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

Industry allows them to charge their customers, manufactur-ers 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�!������������%����#������������������<����#�����������~����#�������������"

SUGGESTION : In order to put exports on growth track there is an urgent need for remedial policy measures to ensure avail-ability of cheaper funds to textile industry and exports. Cheap-er funds for textile industry will improve their competitive-ness and give boost to exports. Further, to make subvention scheme more effective we suggest following changes - Remov-al 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-

�� #���'''�������� #���\[������#���������������������Q��$�

�����������#������#����#���������##������#$� �����'''������

���������Q������������������\�"�"Z[[�����]\"]"Z[[�

The Govt. should notify that service tax on taxable services

����������# ���� #���'''�������� #���\[������#������������

���������Q��$�#�� �������~����������������������\�"�"Z[[��

��� �"�"Z[[�� �%��� ��� ��������� ���q$� #� �������� �����

�������������"�\��Z[[���!������������� �q$�Z[[������%����

!��������~��������� ���������������"Z��Z[\\������Z����

Q����$�Z[\\��������������������Q�~�<�

JUSTIFICATION : �������������"�\��Z[[���!������������� �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 ex-

emption from service tax on membership fee, it should have

����#� ��~������� �����#������� �~���# ���� #���'''������

�� #���\[������#���������������������Q��"

The Synthetic & Rayon Textiles Export Promotion Coun-

cil 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�����##�������������~������#"

COVER STORY

>��?�>�����*���?������������������������7�����J����9

Page 23: JANUARY 2015 ISSUE

www.textilevaluechain.com

TEXTILE VALUE CHAIN | Jan 2015 21

Mr. T. K. Rout Deputy Director - Market Rsearch

Introduction:

The EUs – Generalized System of Preference (GSP) al-lows developing countries to have preferential or zero tar-iff market access on their ex-ports to European Union (EU). It provides a vital access to EU market in terms of better mar-ket access in the largest export destination of the world con-tributing to the growth of de-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) em-ployment 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 esti-mation 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 Ban-gladesh; 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 Paki-stan 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 ref-erence to the GSP scheme of the EU and examined the pos-sible 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 Reali-sations (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 ap-plied 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 re-gion 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 coun-tries 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. Ban-gladesh 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 ex-port basket is more diversified on competition. India and Ban-gladesh 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 be-tween 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 de-picts 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 prefer-ential 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 pref-erential arrangements offered by EU. Further the conditions put forth by European Unions in the form of compliance in is-sues relating to environment, human and labour right laws, governance will adversely affect the realisation.

A deeper analysis indicates that India is enjoying a com-parative 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 advan-tage 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

NEW-EU GSP PLUS SCHEME OF EU AND ITS IMPACT ON T&C EXPORT OF INDIA

GSP - TEX COMMITTE

Page 24: JANUARY 2015 ISSUE

TEXTILE VALUE CHAIN | Jan 201522

www.textilevaluechain.com

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 prod-

ucts 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 com-

petitors of Pakistan (i.e. Bangladesh, China, India, etc.)

Conclusion: In synthesis, the extension of the EU’s GSP + pref-

erences 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 sup-

ply 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-

�����������"�����<��$�����#�������������������������������

tiveness of the sector in terms of reduced cost of production

and enhanced quality so as to enjoy the comparative advan-

tage in EU.

GSP - TEX COMMITTE

New-EU GSP Plus Scheme of EU and its Impact on T&C Export of India

Q����%����q�������������������������#���#���������

�������������#���������������Q##����������<��$���� ��

ment consumption of cotton in the country.

The cotton season 2014-2015 pr�#��#������������� ��"���#��������������#��$� ��������������� ���#�������#�#���will be the highest on record,, being of the order of 40 million. Cotton prices in the global market have declined substantially. Indian prices have also declined, but prices are not competi-tive and attractive for foreign buyers. It is apprehended that, cotton exports to China will fall from 11 million bales in 2013-\^������������������#���Z[\^�\�$�� �����������#������������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<��#�������q�� ����$�'������������������������q��������������������##�#�������fabrics can acquire some of the consumer- preferred qualities ���������������������#���?��%��?�������$���##������$�%#��and wear, easy care etc.

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 fab-rics.

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

����������#��������������������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 ba-sis of their enhanced qualities.

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.

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 supple-

ment the funds required for product development.

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.

Hi CAI – Heroes of Textile Value Chain ---[ by V.Y.Tamhane]

Page 25: JANUARY 2015 ISSUE

www.textilevaluechain.com

TEXTILE VALUE CHAIN | Jan 2015 23

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$

1.15 trillion which forms nearly

\"��� ��� ���� %����� =�X"� Q���#��

���� ��� ���#� ��?��� �#� �����

��������D}�Z�$�}!Q$���������"����#����� ����������

tremendous opportu-

nity available for India

in terms of Textile &

apparel exports. Last

year, Indian Textile in-

dustry did remarkably

well in terms of ex-

ports. Textile exports

%�����]["]��������� ��

from $26.36 billion in

previous year. Out of

total Textile Exports,

readymade garments,

which accounts for

nearly half of all tex-

tile 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#�����%�������� ������#����%���%���������#�������$�

��������~�������Q������������Q������ ��#�������#���#��"�

Increasing per capita, changing lifestyles & fashion culture are

������� ��� ����� ��# ������ ��� �� �� Q"� !����� ��������$�

abundant raw material & cheap labour gives India a big op-

���� ��q����������#�����������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 cre-

ation of conducive environment for exporters. Exercise sup-

portive policy framework, create suitable infrastructure, make

availability ofstate-of-the-art technology, attract skilled work-

�����$��?���������#������#q��������������?�����

platforms. It is very muchnecessary for government to iden-

tify the requirements of Textile exporters. Most of the export-

ers face major challege due to inconsistent export schemes.

Q��������� �~����� �������#� ��� ��������� �q� �q� �� ����#�

to boost exports in the particular segments, increasing incen-

tives 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.

�������<������� �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 contrib-

utors for the growth of exports e.g. presence of textile parks in

cotton growing areas which will have nearness to ports, tex-

tile institutes, CETP &other resources.

We can not manufacture goods of export standard with

obsolete technology. State-of-the-art-technology is essen-

tial 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 ex-

port 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� ��� ���� ������ �#��� �

���#������#��������������~��������`���#���� #������� ����

Roadmap to Indian Textile Exports

EXPORT FOCUS

&�"�Q��#��&q�?�

&�$�! ���Q���#��#�X��"�Ltd.

Page 26: JANUARY 2015 ISSUE

TEXTILE VALUE CHAIN | Jan 201524

www.textilevaluechain.com

������������#"����q���������������������������������

���� � #��##� ������ ����#"� ���� ���q� #�� ���'�� � ���`����

������� ����� �� ��� �� q��#� ��� �q���?� ������� %���� �!�;� ���

\"�����\"�����<;;����\Z����\^�$������?#���� �����������

����� ������������#�����������������������"�����$����q�

are a bit hesitant to sanction loans in this particular industry.

However, due to high foreign exchange earlings and sustain-

ability 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 experienc-

es of servingback term loans because

if we look at the overall scenario, tex-

tile industry fared very well in paying

back the term loans.

The right marketing platform for

exporters to showcase & promote

their products at international market is essential. Govern-

ment can give subsidies to exporters for business develop-

ment activities like participating in various international

events & other business promotion activities. Government

can hold certain international exhibitions for Indian export-

ers which will create awareness on Indian Textile Goods. The

time has come to book export pavillions for all exporters un-

der Indian Brand and exercisr professional networking with

all probable buyers. We need to understand buyer’s require-

ment 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�����������#�

��������������������������#"�&`�����#����������#��## ���#�

our higher production cycles and unplanned production pro-

grams. 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. In-

ternational 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

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 con-

sidering huge market for knitted fabric. Our exporters should

think of exploring new product options and can win over com-

petiton in untapped product segments.

Technical Textiles is another opportunity for Indian ex-

������#"������������������������~����#�����%#�%�����}!��

\]]"�]����������Z[\Z��#��~��������������#�����}!��\�["]��

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 Techni-

cal Textiles. Now we have to focus on technology know how &

product developments. Even existing conventional textile ex-

porters 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���� %���� �������� �� ������� �� �� ���� ��#$� � �� �~�

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,

����� �� ��?����� �������#� %����#� �~������#� #�� ���

gradually think of moving towards forward integration manu-

facturing 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 spread-

ing the wings of knowledge across the Textile Value Chain…

Roadmap to Indian Textile Exports

EXPORT FOCUS

Right Products

At Right Place

At Right Time

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TEXTILE VALUE CHAIN | Jan 2015 25

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TEXTILE VALUE CHAIN | Jan 201526

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Heimtextil India 2015: A successful start with over 50% space booked

�������� $� ��~����� ������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.

��%��� #��q�#��%��#���?��!�����������Q��%�$�!����!�q�

�����?$�!����Q� ��#����������>���%����~����������

����������%#��������������#�������~�������"�<��%#�%����

appreciated by exhibitors for the services , hospitality, qual-

ity 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 in-

dustry.

TEMTECH 2014 REPORT

POST SHOW REPORT

Bigger space makes way for a grander display and compel-ling 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��� ��Z[\����X�����

&��$���%������"���������#��#$� ���#����#��������#����

scale up the exhibition level, have decided to focus on techni-

cal innovations, upcoming talents, knowledge shar-

ing, as well as home furnishing and textile

market developments through strategi-

cally 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 man-

ufacturers 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

industry. In line with the lifestyle changes and growth in dis-

pensable incomes, the increasing consumer interest towards

décor and lifestyle products will be the essential demand

driver for home furnishings.

Expected to witness a compound annual growth rate of

�� ������ ����Z[\]�Z[\�$�<��������� ��#�������

?����#�#���������##�;#"�;#"�][��]�����}!���������������� �#��q�

2018. The boom in realty, retail and hospitality sectors will

also spur demand for interior and decorative products, mak-

ing the future of home furnishings more promising.

Creating the perfect launchpad for new ideas and innova-

tions, 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 ultra-

convenient sourcing experi-

ence to home fashion buyers

in India by offering the widest

spectrum of interior, lifestyle,

furnishing, collectibles and home décor products all under

one roof.

PRE

SHO

W R

EPO

RT

Page 29: JANUARY 2015 ISSUE

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TEXTILE VALUE CHAIN | Jan 2015 27

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 Gan-

dhinagar.

The international textile machinery

exhibition hosted around 200 exhibi-

���#���Z\$^�����#����#�� ���������� ��

days of the show. Exhibitors were satis-

����� %���� ���� � ���q� ��� ��#����#� �� ��

��#������� ����#"�<�&Q���<���Z[\^�

attracted serious visitors and decision

makers from the textile industry, from

across the country. International visitors

were from Egypt, Ethiopia, Iran, Nigeria,

��X?�#�"�����# ���##��������<�&Q���

India 2014 establishes the need of a large

exhibition centre, beyond Mumbai.

� ��������� � ������������#��%�

and the concurrently held international

textile conference, `India’ – Opportuni-

ties for Global Textile Investments, Shri

Saurabhbhai Patel, Hon’ble Minister of

Finance, Energy & Petrochemicals, Gov-

ernment of Gujarat, said, “Gujarat is mov-

ing towards becoming the textile manu-

��� ���� � �� ��� ���� �� ��q"� Q�� # ��� �

����$� � �~�������� ��?�� <�&Q��� <���

is very much the need of the hour. We

����� ���� <�&Q��� <��� %���� ��� � �

nual event in Gandhinagar’s Exhibition

Centre, which is a world class exhibition

������q"�<���������#���<�&Q���<���#��%�

grow from one hall today to several ones

in the next one year, with full support of

����#������������"��

Gujarat is fast becoming the textile

manufacturing hub of the country, with

several prestigious projects coming up

������#���"����#��?�#�Q�����������

preferred location for an international

������q� �~�������� ��?�� <�&Q��� <�

dia.

Exhibitors and visitors have evinced

#��#������%��������#��%"�Q�����������

Shri Ramesh Brahmbhatt, Yamuna Ma-

����� ���?#� ���$� �<�&Q��� <��� Z[\^�

is a very well-organised show. We are

happy to be here, and to meet our exist-

ing customers, and some new customers

���"��

Q�#������������?�%#���������������

Sagar Group. The company represents a

large number of international and Indian

machinery makers. Says Shri Varishensa-

gar Shah, “We are happy to participate in

<�&Q���<���Z[\^"�������������������#�

at the show, while also meeting with our

existing clients. With the industry in in-

vestment mode, this is the right time and

������������#���������q�#��%"�

Q������ �~�������� !���� ����� !���

��� &�#�� ����#�#� #����$� �<�&Q���

India 2014 did not attract visitors, the

show attracted buyers. Those visiting

the show were serious about doing busi-

ness at the show, and were able to meet

not just their existing suppliers, but also

new suppliers. This was a win-win show

����������~�������#�����#����#"�

Says Natascha R Meier, Head, Sales

& Marketing, Graf Group, “We are very

happy to be at the show. The response is

beyond expectations. We had not expect-

ed an international class show when we

�������� ��� ���������� �� <�&Q��� <���

2014. We were able to meet new, serious

�����#�� ���������� ���q�����"�

While some exhibitors were able to

clinch business deals at the show, almost

��������~�������#�%������������������

ging orders as a result of the show.

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 lo-

cated 6 kms away from

X����� ����� �� Q������

��#�����$�� !���~� <� #�

����#� &�� Q���� X����

said.

“We intend to complete this project

�q�Z[\��\�"����%���������� #�����#���

ning, weaving, knitting and processing in

���#�������q$�����#��$������!���~�<� #�

tries has already been into textile busi-

ness 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 phase-

wise manner. Patel also said that Pipa-

vav 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 manu-

facturing plant will be operationalised

by March 2015 and we will be adding

one lakh spindles every two months and

���� ���#�� ���� ���`���� ����� Z[\��\�$�� ���

said. Patel said the plant will generate

employment opportunities for around

�$[[[� ���#�#� �� �� �� ^[��[�� ���

the employees will be women. “We ex-

pect 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

;#��$^[[�������� ���������#����#���%����

���� ���%��� ���� ��� Z[�"� �X��� ��#� %����

not only range up to cotton but will also

include multiple products like polyes-

����q�#$���#��#��q�$��q��$����$��X����

#��$� ����� ���� �[��[�� ��� ���� �����

ucts will be exported. “Besides, there is a

huge opportunity globally in this sector,

especially as the space is being vacated

by China.

Meanwhile, Welspun has also an-

� ������#��~�#�����#�����#�Q`��

POST SHOW REPORT

PREMIERE EDITION OF ITMACH INDIA: A WINNER FOR EXHIBITORS AND VISITORS

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TEXTILE VALUE CHAIN | Jan 2015 29

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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

��������$�� X����}!Q�$�Q��#������!�$��q�����}!Q�$����"������

��������%���������}!���\���������� ��#��#"

�����%���$�����������~����#������#��#�][�����������~�

tiles produced. In countries like Germany, the Technical Tex-

tiles share in tonnage is

already reaching about

�[�� ��� ��� ��~����#� ����

duced and is expected to

������^���q�Z[\�"

Technical Textiles in

the abovecontext include

high performance com-

posite reinforcements

like glass or carbon fab-

���#��\���%�����������~�

#����$��%���#��]Z��

world TechTex share)

and other woven, knitted,

braided or yarn type prod-

��#� ��\�� %����� ������~�

share).

Fig. 1: Technical Textile Market shareSource: 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 ����� � ��� ��

����#�����?�q�#q������������#������������������� ��������

Technical Textiles.

���#�����#��� ���#������q������������������X��q�#������ #�

����� q�#$� %����� ���� �� Z[\Z� ����q� ���������� �[�� ���

%��������� ��������#������� �������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 under-line 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 spun-lacing (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 wo-

vens), Medtech (prosthesis), Medical equipment, etc.

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

Such typically woven, stitch-bonded or unidirectional

��}���� �����#� ��� �� %��� �������� �q� ���� ������ # �������

with thermoset or thermoplastic matrix material - called ‘pre-

����#�� ��������������� ���� � #� ������� �#��� ��~�����

surfaces).

CHALLENGES AND OPPORTUNITIES FACING EU COMPANIES IN TECHNICAL TEXTILES

Hendrik van Delden, X����$�=���'����������=���

Krefeld, Germany

TECHNICAL TEXTILES

Page 33: JANUARY 2015 ISSUE

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TEXTILE VALUE CHAIN | Jan 2015 31

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

�� �#����;������#������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������ ��� �����

wovens) on a laminator, a mouldable sheet is formed, which

is then further processed by various deep-drawing technolo-

gies 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).

Pre-pregs are growing worldwide and as such offer op-

portunities 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 in-

dustry. 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

�����������������#�������;��$����� ���������������#�%����

as plant and equipment.

Shri Santosh Kumar Gangwar, Hon’ble Minister of State

for Textiles (Independent Charge), Govt. of India presided the

� ���������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 Interna-

tional 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

TECHNICAL TEXTILES

TECHNOTEX 2015Sunshine 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,

delivered the Inaugural address for the Launch Cer-

���q�����������~�Z[\�"��������#�'���������� � ���

initiatives, schemes and environment of encouragement pro-

vided by the Govt. of India

A Brief on Technotex 2015:

Technotex 2015 would be the largest International Exhi-

bition & Conference of Technical Textiles in India. The annual

����$�����'���`����q��q�����&��#��q������~����#$�=���"����<�

������<��<��#���#������#�^���������������Q�������\\$�Z[\^�

at Mumbai. The event has the support of many Industry as-

sociations. 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$�<��q$�!%��'����$�

��$�; ##�$�}!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.

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TEXTILE VALUE CHAIN | Jan 201532

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TEXTILE VALUE CHAIN | Jan 2015 33

�<��<��Q=�Z[\^�������������?�����������������\�$�

Z[\^���& ����%�����%#���� #������������=��%������� ���

<��������������~��������������� #��q"��Q�%����������

�� �������� =��%��� ���� ��� <������� X������� �q� �<��<�

���'���%#��#������#���� ����������������"

The conference kick starts with the welcome address by

&�"� ����?� & ?��$� ���$� �<��<�&��#���� !���� �� ���"�

<���#�%�����������##$����������������<����?#��������

position among 143 countries in the global innovation index

2014. These certainly suggest India requires lot of efforts to

���������;���������� �������������"

Mr. Suresh Kotak, Chairman, Subgroup on Textile & Tech-

nical Textiles, FICCI – MSC in his address requested the textile

industry entrepreneurs to put efforts to made the Indian tex-

tile industry innovative and take this industry to the new of

heights of the success.

�<��������������#�����$�&�"�X�#���Q��%�$���"�&�

���� ��������$� �'��� Q���#��#� X��� ���� ��#� ##��� �� �� ����

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 ex-

cellence.

�&�"���������%�`?$�&������������$�Q��?�<� #����#�����

stated that each company should invest in the innovative tech-

nology which ultimately gave you the right product with right

������%����� �#� ���� ��������%���������q�#�������#������

out.

In the panel discussion on the Product, Process and Sys-

tems Innovation – The Success Mantra, eminent panelists

from different sectors discussed about the innovations taking

place in textile and apparel industry around the globe from

������������#��������#�#���"����������#�#�# ���#�&�"�������

��%�`?$�Q��?�<� #����#$�&�"�;`����q�$�&�����<� #����#$�

&�"�!�!�Q���$����#� �<��$�&�"�&�����&�%�$�<�_<!�Q$�&�"�

�q������$�����'q��#�!� ���Q#�$����������������%���

novation is the backbone of success in changing global scenar-

io and how their companies have innovated product, process

or systems to remain competitive and contemporary.

�<�����������#� ##���������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

and Product Quality. With increase in manufacturing costs

globally, businesses are focusing more on enhancing produc-

tivity to improve the bottom line and new technology is play-

ing 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 compa-

nies 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.

01: Mr. Deepak Mukhi, Head, FICCI – MSC, Mr. Suresh Kotak, Chairman, Subgroup on Textile & Tech-nical Textiles, FICCI – MSC, Mr. Dilip Jiwrajka, Manag-ing Director, Alok Industries Ltd, Mr. Prashant Agar-wal, Jt. Managing Director, Wazir Advisors Pvt Ltd

FICCI TAG 2014 Conference concluded on the successful note

POST EVENT REPORT

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TEXTILE VALUE CHAIN | Jan 201534

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���� ��~����� Q##������� �<���$� & ���� }��� ����'���

Q ��������������<�����~����#��������q����%������

Friday, 14th November 2014 at Hotel The Lalit, Mumbai. The

Conference received overwhelming response. The presenta-

tions were highly appreciated, particularly all the papers in

���������#�##��"������������#���������������~�������������

es, there was a presentation on Intellectual Property Rights in

��~����#���=����#��������������������~������� #����#"�

&�"� �"� >�#�$� X��#����$� �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 en-

tire industry has to be integrated in one way or the other.

�Q<�& ����}��������������&�"�Q `�>��%��$�&�$�Q"��"�

D"�D������#�#�X��"����"�&#"�������=��?$�&�$����#� �=����

�� >��#� ���"$� �� &�"� �"� Q"� Q���q$� �����$� 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

time and money during the conversion, leaving the logistics in

�������#��q"������#���$��[����������#��������� ��q�

are made in Maharashstra, and this is sent to other centres for

processing, entailing additional cost. This is the biggest chal-

lenge today. The third challenge is the environmental compli-

ances in processing.

&#"�;� ?�;���$��� ���$�&����������������D�$�

& ������#� Q������� Q##��� &������ X��"� ���"� #��?�� ��

��������Q���##������~���������������!������"�!���#�����������

looks at the capital invested to market cap ratio, non-textile

companies show much better returns compared to the tex-

tile companies. She also acknowledged the fact that the textile

������#� ��� ��� ���� ������#� ���� ������ �#��� ���#�

solicit from investing on account of poorer returns demon-

strated 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 val-

ue 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����$�!�"���������$��!>��>?������������#���

��������������#������������������D~������� �� ���#�"�

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��`���#¥�Z[������[���#�����"�����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.

Indian Textiles - The Way Forward

POST EVENT REPORT

by Textile Association (India), Mumbai Unit

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TEXTILE VALUE CHAIN | Jan 2015 37

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, ��\����\����������Z[\^���& ���$�#%��������������ing of professionals from the industry and a packed hall with 135+ delegates from India and abroad.

�����������q���#������� ����?���������%����%������������� ��~����#� ��?��$� &�"� &������ �¦��?�$� ��������� >���Management Technical Textiles & Textile Processing, Messe Frankfurt, in his opening address, pointed out: “Technical tex-tiles 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[Z�"��

With the Indian government keen to increase the contribu-tion of manufacturing in the economy, local technical textiles #�������#��~�������������%���Z[���Q;=�����������~�������"�Speaking about how the sector can achieve this growth target, &�"�_�`q��"$�������# �������������Q���#��q$�<�;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 con-sumption pattern, export promotion, institutional demands and value added products will ensure we achieve this growth ��`������"�

Post Event Report

Q����� �� ������� ���%��� ���%� ����������#� �� ������and Composites’, the symposium also saw frontrunners in technical textile sphere like Reliance Industries Ltd, Teijin In-dia Pvt. Ltd., Saertex Indiaand Leister Technologies India Pvt ���"�}��������������#���#������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 ���������%��#�;���������������~����#"�>�?����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 per-formance factors. Future opportunities will stem from inte-grating woven and nonwovens in wearable electronics, lighter weight components, carbon composites and glass fabrics, au-tonomous vehicles, energy storage, advanced materials and ���%��������q"�Q���� #��#q#�������� ��� #��##�;������support these developments. Industry challenges and tech-nology 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����]��technologies without the disadvantages and developments in Warp Knitting for Technical Textiles.

Bringing sector specialists from consultation, manufactur-ing and research sides for the highly anticipated panel discus-sion 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 techni-cal 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-��������������<��$�&�� �����#�X��"����"�#��¤��> #��##�#������������� #���#�������#���������~�������������"��%�����&�"�}�?�#��!"��������$�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.“

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

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TEXTILE VALUE CHAIN | Jan 201538

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Your Centre of Innovation24 – 26 September 2015Hall 6, B.E.C, Goregaon (E)

International Trade Fair for Technical Textiles and Nonwovens

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 | [email protected]. techtextil-india.co.in

Book

your booth!

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INDIA Arrivals:

Q�����#� �� <��� ���� ���?���

up pace and remain well over

0.2 million bales per day. Cur-

rent 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-

�������������� ��������������������#�����\�[?���%�����<�;�

\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 polyes-

ter 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 consoli-

dation activity of the US cotton indicates excellent demand for

Mr. Manish DagaCOTTON GURU™ ���������� �������������

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 expect-

ed 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 procure-

ment 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�#� ������ �����#������Z�������"�����#���?#�

��� #�� ����� �#� ��?�� ��� ���� ��� \�\�� ����%� ���� �#�����#� ���

\���"�����������#��~��������������� �#����¨�`���#�����

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

%������������"��~��������������#�������]����� ��

���� ����$������������������q�������������\�"��������#�

a buying interest from 15 to 20 countries indicated good de-

mand.

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-

MARKET REPORT

COTTON REPORT

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TEXTILE VALUE CHAIN | Jan 2015 41

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

���� �������"�;�#��©�����#���#��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.

���X�`q���?¤���Q����������������������#����#�����

stock will be updated. The scenario would be slightly clear

�q�������"�X����#����������%������� ��%���������%���������

#���?������%�������������#"�<���q�����������Q�������"

���Q������=�����X `��������¤��<�%�������%���������

�q�Z�����#"����#�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 #����$�}'��?�#�$���>�'�����# �������������[���������

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��[��"�<�

dia’s exports to the Chinese market increased sharply when

China was buying domestic cotton for the state reserve. Indi-

an 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 proportion-

ately smaller decreases in their 2014/15 exports. In fact, for

>�'��$�%��������������#��������������$�������~����#����

forecast to rise on larger supply and shipments to other des-

tinations.

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 aver-

age 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��������������$�������� �� ���#��~����������

�� ���\����������!� ���������#�����$�%����������#��� �

����#���?��>�'��$�Q #�������!� �������D#����Q����"�Q��

����������<�Q��#����#��������$��������������#������#��������

��%�\Z������]��������������#$�������%�#������������#�#�#�

������!� ���������#�����$�� �������%�%����������#"�Q## ��

ing an average yield of 853 kg per hectare for the region, pro-

� ������#�����������������\�������Z"�����������#$�%�����

��� �#�����\[�������~�������%������ �� ����Z[\^�\�"

MARKET REPORT

COTTON REPORT

Page 44: JANUARY 2015 ISSUE

TEXTILE VALUE CHAIN | Jan 201542

www.textilevaluechain.com

>�'���������#������##���� #�#��������������������#�

#�#��#��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

�����������Z�Z$[[[�������#$���� �� ������]���������[$[[[�

��#$�<�Q�������#"�

����!� �������D#����Q����$������� �#����`���������

�������������\"^��������������#"���%����$�q������#���?��q����

�������������������������Z]��?������������$���# �������

� �� ���� �����]Z�$[[[���#$���%�Z��������Z[\]�\^"

Meanwhile, world production is projected to remain sta-

������Z�"Z����������#���#������]�������#����������]]"��

million hectares. India, China, the United States and Pakistan

����~������������� �������[������������� �� ��������������

����#�����$�%������#����`�����������#��Z������Z]����������#�

%������%���q����#����#����������^����������"�Q�����������

���\�����Z[\]�\^$�%�������# �������#��~������������������

�q�]"�������Z^"^����������#$�����<�Q��#���#"��������������

sumers of cotton in 2014/15 are likely to be China, India, Paki-

stan, Turkey and Bangladesh. Lower domestic prices and gov-

ernment 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.

<�Z[\]�\^$��# ������������������q������� ���������������

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

���� \�[� ?�� ����� �� ��#� ��������� �#�����$� ����� ��#� �������

�#���������^[�"�[��?�����#"�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:

Gujarat government has recently announced INR 11000

million relief package for farmers. It includes INR 5000 mil-

lion relief in electricity bills and INR 6000 million relief in in-

����#����#������������������ ����[��%�����"�

Q#�������#�����$�= `���%�������� ���\Z�����������#�

of cotton this year. While each year bales were exported to

China and other countries, this year those countries have wit-

nessed fall in demand of cotton and they have enough stock

which has resulted to lower global purchase.

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 pack-ages 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 vil-

lages till the situation improves.

The electricity bills of farmers of drought-affected areas

will be waived .The government will also ensure uninterrupt-

ed power supply to the farmers and will waive their electricity

bills for the September-November quarter as a temporary ar-

rangement.

����������&��#����#���##��� ������������������%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.

MARKET REPORT

COTTON REPORT

Page 45: JANUARY 2015 ISSUE

www.textilevaluechain.com

TEXTILE VALUE CHAIN | Jan 2015 43

ICE Futures are trading weak on all time frames, however technical indicators does suggest a fair chance of short term ��������� �������#"�!���%q#�����������������������������#���������"�&���� �������?���q�����������������%������#"���q�! �����#���"�^���"�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 ��������� ��\��[[���#"�;���� ������\���[�\���[������#�expected in next few weeks. Traders can look to cover short term shorts. Strength in cotton expected only above 16300 ��#"���q�! �����#�\��\[�\�[�[�\^��[$���q�;�#�#���#�\�][[�\��[[�\���["

3. ACE COTTON

KEY SUPPORTS 32900-32600-32400 KEY RESISTQ��D!�]]��[�]^^[[�]^��[

������ª�\���Z[[�Z�[��������������#�������� � "���

!_�&�#� �&<&!� ������� ��� ��� }����#��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$� !���"� Q���#����� X���$� ������� ��������$� !_�&$#�

�&<&!$�&������������&�Q������#�����!���� ���#�#����

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��?� <� #����#� ���"$� ���#� �

<��� ���"$� ��� �q� ����$� &��� ����#�#� ��"$� ������� ���"$�

Q��������"$�!����~�<� #����#����"$�>���q�;q�����#����

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 in-

dustries. To keep pace with national and international mar-

ket, 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 knowl-

edge 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 pro-

duce complete student.

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

COLLEGE FOCUS

Technical Reports:

1. ICE COTTON

Page 46: JANUARY 2015 ISSUE

TEXTILE VALUE CHAIN | Jan 201544

www.textilevaluechain.com

+� ;%���������������¤�# ���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 pur-

chasing much cotton, may be getting cheaper and better

� ���q�������������� ��q��������������������� ����#"�

domestic demand is also less.

+� ;%����������?�������$�q�$��������#���������� �����q�

Z[����Z���$�����������������������#����"�=��������������#�

���������?��� �$��q������#������������"�Q�������

and Mumbai big merchant also cancelled many orders af-

ter packaging of fabrics from mills. Merchants are avoiding

calls from mill managers, as there is lot of stock in whole-

sale market and crunch of working capital.

+� & ������������?����#������#�����#�#����������

riage season too in 2014.

+� !� ���%����#�#���?����������=��q�������# ���q��������

processing house.

+� � �����������~��##������%�����#�#�$�# ������ ���#�

���������\���������"�Q���%����$������##��� #�$�������

merchants are not in good mood.

+� ����##������� #�$�������������#�������#����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�����X������q��?������#�?�����������"�

+� X������#��������������������"������$������$���$�satin, dobby weave, many other varieties with digital printing have a good demand.

+� ! ���������������#������������ #��q����������\�����stock, not ready to pick new stock.

+� ���� �����������##�������������� #��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[�$�#������������#���demand in the segment. Semi wholesaler giving payment after 6 months and not ready to take any new stocks from ��?��"�� �������?�����`���������~����$���������#�� ���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 guaran-tee, 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

+� &�?����#�%��������=!���=���#���!��������~"�=!���#�����������������������\#��Q�����Z[\�$�� �������Minister asked state minister whether to implement from april – May 2015.

+� <����������q�����������#������q� �����%���$#��������population in India is between 20 to 35 years who are will-ing to work for nation, developing trade, business. Youth

have potential to project their skills, implement new and

fresh ideas.

FABRIC REPORT

!��� D��#� 11th International Conference to be held in & ���� �� Z[��� ���$� Z[\�� !�����q� ��� �q��#� �� ���� ��#�#�D� ����� �����q� �!��� D�$� <���� �#� ��� �� ��� � ��� ��#�11th International Conference with the theme:

“Innovations for Sustainable Textile Production… Con-�������������#�$

Q�����q���������$�#���� ������������q$�Z[������� �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, Laborato-ries and Textile Processors. Speakers of global repute will be

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 well-known international speakers on contemporary technical top-ics 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.

���� � ������ �����#$� ?���q� �����¤� &�#"� _�#���� ���?��

�#���#��"���"��$�%%%"#��"���" ?�

PRE SHOW REPORT

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

Page 47: JANUARY 2015 ISSUE

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TEXTILE VALUE CHAIN | Jan 2015 45

Page 48: JANUARY 2015 ISSUE

TEXTILE VALUE CHAIN | Jan 201546

www.textilevaluechain.com

By Mr. Sanjiv Lathia, Chairman, India ITME Society

Textile machinery manufac-

turing in India started in the post

independence era. The TEI in In-

dia has grown in accordance with

that of the textiles and clothing

�� #��q"� Q#� ���� ��~����� �� #��q�

�����#������ ���� ���� ����� ���$�

TEI also taken up the produc-

tion 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

\^^�� ��#����%������[�����#���������� ��� ��� ��

ers. With 598 units manufacturing complete machinery and

848 units parts and accessories, the industry produce machin-

eries 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 ma-

chinery has been improving steadily. In case of spinning, In-

dia 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 in-

dustry 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.

The recent trend of exports of textiles machinery manu-

factured 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 ma-

chinery, parts, components and accessories and match the

demand of the Indian textile industry for high tech machin-

ery.

The scope and opportunity in Indian market is unfathom-

able 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 mar-

kets 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 compa-

nies. Price competitive products are in high demand especial-

ly 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 win-

dow 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 op-

portunities 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 un-

der one roof but create conducive business atmosphere and

facilitate customer connect globally.

India ITME Society creates a new business platform for Textile Engineering Industry – GTTES 2015

TEXTILE MACHINERY

(20th to 22nd January 2015).

Page 49: JANUARY 2015 ISSUE

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TEXTILE VALUE CHAIN | Jan 2015 47

��"�;?#�����#]��q��#������#����~�����

ence & profound knowledge of manufacturing

&product innovation. The association makes

! ��� ��� #������� �� ���� ������ ��� ��������

��~�����#�����$�%������#��~�������������%���<����������������Z[��q�����q�������������?���#�'����]��

��������q�Z[\��\�"�������������%�������#�������������~����#$�<����������� �#�������?�������

opportunities to invest into this sector & they need complete solutions from market strategy, technology

#�����������������������������������������`���"���"�;?#����#�##�������%����! ���%� �����������

the entire value chain of the textile industry.

!���������#��~�����#��������� ���������������������������������#�������������~����#$���������# ����������� ����#�����

ing, Market research and Business development of new products, project management for setting-up new plants, implementa-

�������������� ���q��������#q#���#$���#���������������q�������� �#"�����#�^Z�;�#�����X���#�����������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.

NEW APPOINTEMENTS IN THE INDUSTRY

ITAMMA NEW PRESIDENT Mr. S. Senthilkumar - President

&��!�����? ����#�����&����������������!����&�����q�X���������<���=����������_�� ���

a well known manufacturer of Simta Jacobi Travelling Cleaner, Bobbin Transport System, Spindle tapes,

����?����������;�����#�������~�����<� #��q"�����#�����������X�������#����!<&�Q�=�� ��%������#��%�Z��

q��#����"��Q�#����������������<������������������������<� #��q$�������������������������#�

������!����<� #����#�Q##������������##��"�

������%����<�Q&&Q�\��q��#���?����#�&������������������\]�q��#"������#��#������������� ��� ������� X_��

%���%��������#���%���%#"�

Dr. Anupkumar Rakshit joins as a

Technical Director at SuvinAdvisors Pvt. Ltd.

Obituary Note Late Shri. Amit K. Shah

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���##����#���&�����q�& ��� ���#��Q##��������������������%�����

���#"�����%#���������#��]���X��#������������Q##�������������q���Z[[��[�"����%#������ � #�#� ��������#����������

� ������������������Q##�����������#���������#������� ���������##"��

<�#����������#�� #q�#���� ��#���������������������q� ����#����� ������������#���� <�Q&&Q$� ��� ����&�����������

����������#���������D���#����������q�������#��������������������� #������#������������%����������Q##������"�

<�Q&&Q��#� ��������&�}�%��������<����������~�����Q##���������D&!Q���� ������#��� ������X��#����#���"

���%#�_�������������<���<�&D�!�����q�������q���Z[[��[�"����%#��#������������&����������q�������Q##����

tions, including Gujarat Chamber of Commerce.

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 ven-

ture into newer categories with a view to establishing itself as the leading house of lifestyle brands in the

country.

APPOINTEMENTS

Page 50: JANUARY 2015 ISSUE

TEXTILE VALUE CHAIN | Jan 201548

www.textilevaluechain.com

7-8 INDA Nonwovens Training CoursePlace : Mumbai/ India, info: www.tecnitex.in

11-13 Vibrant Gujarat SummitPlace : Ahmedabad/ India, info : www.vibrantgujarat.com

9-12 TEXFAIR/ Farm to Finish, Place : Coimbatore/ India, info : www.simamills.org

9-10 VASTRA 15Place : VJTI/ Mumbai/ India \

info: www.vastra2015.net

14-17 Heimtextil 2015, Place: Frankfurt/ Germany, info : www.heimtextil.de

17-20 Domotex 2015Place : Hanover/ Germany, info : www.domotex.de

17-18 TAI- VIDHARBHPlace : Nagpur/ India, info : [email protected]

18-20 Techtexil Middle East SymposiumPlace : Dubai/ UAE, info: www.techtexil.com

19-21 TEX WORLDPlace : New York/ USA info : www.texworldjan2015.wyndhamjade.com

20-22 GTTES ( Global textile Technology &

Engineering Show 2015)Place : Mumbai/ India,

28-29 National Garment Fair by CMAIPlace : Mumbai/ India, info : www.cmai.in/cmai-fairs-events

28- 30 Tex TrendPlace : Delhi/ India, info ww.textrendindiafair.com

31 Non woven SymposiumPlace : Mumbai/ India, info : www.ittaindia.org

4-7 The Dhaka International Textile

& Garment Machinery ShowPlace: Dhaka, Bangladesh, Info: www.bangla-expo.com/DTG

6-9 KNIT TECH 2015

Place : Tirupur / India, info: www.hitechtradefairs.com

13-15 Global Textile Congress

Place : Bangkok, Thailand, info: www.textileassociationindia.org

info : www.india-itme.com/GTTES2015

SHOW CALENDERth

20 11 SDC International ConferencePlace : Mumbai/ India,

24-26 Filtech 2015Place : Cologne/ Germany, info : www.filtech.de

th26 5 international conference on

Digital Textile PrintingVenue : New Delhi/ India, info : www.inkjetforumindia.com

1-3 Domotex RussiaPlace : Moscow, Russia, info: www.domotex.com

4-5 Nonwovens for High-performance

Applications, NHPA2015Place : Cannes/ France, info : www.intnews.com/NHPA

12-13 Home Fashion India Week

Place : Mumbai/ India, info: www.homefashionindiaweek.com

12-13 International Conference on Fashion and Textiles

Place : Jodhpur/ India,

info : www.nift.ac.in/jodhpur/icft

12-14 F & A show / HOMTEX 2015Place : Bangalore / India, info : www.fnashow.in

18-20 Infashion 2015 / India Fashion Forum Place : Mumbai/ India, info : www.indiainfashion.com

20-22 Textile Expo 2015

Place : Surat/ India, info: www.textileexpo.in

st23-25 1 Annual cogress of smart material 2015

Place: Busan/Korea, info: www.bitcongress.com/wcsm2015

9-11 TechnotexPlace: Mumbai/ India, info: www.technotexindia.in

22 International GOTS Conference Place : Mumbai/ India,

info : [email protected]

March 2015

April 2015

May 2015

June 2015

20-22 Hometex Tech, Place : Panipat/ India, info: www.essentialmedia.biz

info: www.global-standard.org

January 2015

February 2015

MARKET REPORT

4-6Non Woven Tech – AsiaPlace : Ahmadabad/ India,

info : www.nonwoventechasia.com

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TEXTILE VALUE CHAIN | Jan 2015 49

“Lean Manufactur-��=� ~���'� /�+� ��� �������no matter what the eco-nomic scenario is .”

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 tex-

tile ladder by adapting with the

changing dynamics of the textile in-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 manufac-turing 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 try-ing 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 gener-ating areas within the plant. Lean manufacturing and textile is about producing the right product in the right time. We devel-oped a Kanban process, a card system to maneuver the mate-rial across the plant and our warehouse follows a state of the art system with lean concepts. Heijunka, a production level-ling 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 productiv-

ity.

In this process every employee is accountable and imple-

mentation of lean has to be done to the root level.

“Quality is a never ending voyage and Lean Manufacturing strategies must be-come a part of your daily system�"

LEAN MANUFACTURING : KEEPING TEXTILES SUSTAINABLE

Mr. Harish Chatterjee,VP- Manufacturing

Raymond Ltd.

MANUFACTURING FOCUS

AD

VT.

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TEXTILE VALUE CHAIN | Jan 2015 51

C-107, SECTOR 10, NOIDA (U.P.) - 201038. (INDIA)

FACTORY LUDHIANA M.: +91 98760 21115 +91 88009 31506

Website: www.srisriinternational.in

e-mail : [email protected]

OFFICE & SHOWROOM

Lycra Knitted Fabrics Manufacturer

Sri Sri International

Cotton/Poly, 100% Polyester Interlock, Poly/Lycra Jersy 90 Poly

10% Spendex and all types of sports wear fabrics solid and printed

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