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TEXTILE MACHINERY MANUFACTURERS’ ASSOCIATION (INDIA) MUMBAI

Proceedings of the 54th Annual General Meeting of the Association held at 7.00 p.m. on Wednesday, 27th August, 2014 at Sunset Lounge,

Pool Level, Hotel Trident, Nariman Point, Mumbai 400 021

Attendance:

The list of members who attended the meeting is given in Annexure „A‟. Chairman

Mr. Prakash K. Bhagwati, Chairman of the Association conducted the meeting.

Mr. Prakash Bhagwati extended a hearty welcome to the Chief Guest Padma Bhushan Dr. T. Ramasami, Former, Secretary, Department of Science and Technology, Government of India, the Guest of Honour Mr. Yogesh Kusumgar, President & CEO, Kusumgar Corporates Pvt. Ltd., Mumbai and other dignitaries present to the 54th Annual General Meeting. The Chairman thanked Dr. Ramasami who in spite of his busy schedule agreed to grace the occasion as the Chief Guest and to present the Export Promotion and R&D Awards to the winners.

He also expressed his sincere thanks and gratitude to Mr. Yogesh Kusumgar for accepting TMMA‟s invitation to be the Guest of Honour. He then introduced the Chief Guest to the audience.

Padma Bhushan Dr. T. Ramasami holds a Master's degree in Leather Technology from the University of Madras, India and PhD in Chemistry from the University of Leeds, UK. He had worked on energy research in Ames Laboratory Iowa, USA and on electron transport phenomena in the Wayne State University, USA prior to returning to India for undertaking his scientific career. He joined the Central Leather Research Institute, Chennai as a Scientist in 1984 and served as its Director for more than 10 years during the period upto May 2006. He is known among the scientific establishments in the country for his outstanding leadership to the Central Leather Research Institute which made the institution earn a global leadership status.

Dr. Ramasami had served as the Secretary, Ministry of Science & Technology in the Government of India from May 2006 to April 2014. He was engaged in the development of policies and programs for attracting of talents for study and careers with science, rejuvenation of research in universities, stepping up of international Science & Technology cooperation, development of public-private partnerships in R&D sector and accountability of public funded research, development and demonstration.

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Dr. Ramasami has a large number of publications to his credit in highly peer-valued journals and significant number of patents, which are under commercial exploitation. He has made some important contributions in the fields of inorganic chemistry as well as chemical and leather related technologies. His contributions to the understanding of the chemistry and applications of chromium as well as leather science and environment related technologies have earned him several professional recognitions in both India and abroad. These include the Shanti Swarup Bhatnagar Prize for chemical sciences in 1993, election to all major science academies as a fellow as well the Third World Academy of Sciences and the National civilian award Padma Sri in 2001. Recently he has been awarded Padma Bhushan for his contribution to Science and Technology in 2014. Mr. Prakash Bhagwati also expressed his sincere thanks and gratitude to Mr. Yogesh Kusumgar, President & CEO, Kusumgar Corporates, Mumbai, who has agreed to be with us on this occasion as the Guest of Honour. He briefly introduced the Guest of Honour to the audience. Mr. Yogesh K. Kusumgar was the Principal and Head of Mechanical Processing Department at SASMIRA. He started his own business in the year 1970 and is the promoter of Kusumgar Corporates Pvt. Ltd., Mumbai. He commenced his business activity with Filter Fabrics but promptly shifted to critical Aerospace Textiles including Parachute Fabrics for various applications such as Man Drop Parachutes, High Altitude Parachutes, Brake Parachutes, Cargo Drop Parachutes, Sea Mine Parachutes, Illuminating Parachutes etc. He was conferred “National Award for Indigenization – 1994-95 “for indigenization of Brake Parachutes for MIG Aircraft. He expanded NBC protective clothing, High Altitude Textiles, Aerospace Textiles, Balloon fabrics, Inflatable Textiles etc. In the area of Non-defence Technical Textiles, he engaged in coated fabrics, medicinal textiles, Geotextiles etc. Mr. Kusumgar indigenized ballistic resistance fabrics made from Poly Aramid yarns (Kevlar/Twaron) which has been accepted by local and international authorities. Today, his Company, Kusumgar Corporates Pvt. Ltd. is recognized as a pioneer in Technical Textiles in India.

He has published and presented more than 21 Technical Papers on different aspects of Technical Textiles at various conferences, seminars and workshops. He is a Member of Parachute Industry Association (PIA), USA. He is also a Member of Committee of Bureau of Indian Standards (B.I.S.) and Member of Steering Committee for Growth & Development of Technical Textiles (SCGTT), under the Ministry of Textiles, Govt. of India.

His vast experience in the area of technical textiles and sharing of his experience would help us to identify opportunities in this unexplored as well as exciting new area.

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In his welcome address, the Chairman Mr. Prakash Bhagwati enumerated the role of the Association that has transformed the textile engineering industry in the post-reform era of approaching Governments for concessions and reliefs to initiating measures to revitalize the industries, market studies and exploration, expanding the horizon for accelerated modernization and R&D promotion.

He touched upon the state of the economy and the industrial growth achieved during the last two years, witnessed lowest GDP Growth rate in this decade. It was 4.5% for the year 2012-13 and 4.7% for the year 2013-14. Inflation has remained during this period stubbornly high at a dangerous level of 9.49% on an average basis. Policy basic rate of Interest therefore was raised to 8% by RBI to tame inflation. This high cost of capital has seriously effected investment in capital goods. Textile industry was badly hit as demand on account of high inflation had not grown at all. We, however, have witnessed in recent past growing of green shoots and we have started believing in the election promise of our Prime Minister that “Good Days are here to come.”

Referring to the status of Textile Engineering Industry (TEI), he stated that the TEI were collectively having a production capacity of approx. Rs. 9,000 crore with over 1400 units spread all over India. Capacity utilization is approx. between 55% to 60%.

He informed that the total requirement/demand from our customer industry was Rs.14,000 crore. The area of concern was that more than 55% to 60% of the requirement was met through imports. Out of huge imports of textile machinery aggregating to approx. Rs.9,000 crore more than 20% of the same was in form of used machines. As textile industry was very fragmented and major part of the same been in unorganized sector, new investments in equipment did not give a competitive edge against global players like China, Pakistan and Bangladesh.

Mr. Bhagwati informed that India has huge potential to become a large player as China in textiles. India ranks amongst the top three countries as far as cotton production was concerned. Trained manpower was in abundance and had the benefit of home market where consumption was steadily growing on account of increasing income. The TEI should have to attain this status and it would need to focus all its energy on Innovation and Excellence.

He stated that more than 80% members of TMMA are SME units and because of resources constraint would not be able to undertake R & D efforts on sustained basis, neither they would be able to invest into a dedicated facility for quality assurance & training.

The Chairman added that TMMA have been playing the facilitator‟s role & with financial support in the form of grants, TMMA together with its members have got involved in various projects which would bring in desired sustainability to our efforts to attain world class quality standards. He complimented Department of Heavy Industry who have continuously encouraged us in realising our goals of creating a stable infrastructure necessary for acquiring excellence in TEI.

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He informed that for promoting innovation and Research & Development following projects have been undertaken:

1) Development of High Tech Shuttleless Loom in India

TMMA has proposed for development of high speed high tech shuttleless rapier loom of international standard through a consortium of 5 manufacturers of shuttleless loom in the country with technical guidance and support from Central Manufacturing Technology Institute (CMTI), Bangalore. A tripartite agreement would be signed in presence of DHI officials with CMTI Bangalore and the loom Development Consortium. The total project cost had been estimated at Rs.20 crore. The Government assured 90% funding for this project under PPP mode.

2) Common Facility Centre (CFC) for industry members for imparting excellence to their products.

Mr. Prakash Bhagwati stated that for material testing, seeking third party quality checks, technical & management training facility CFC would prove very beneficial to Surat based SME units. TMMA in association with Surat Engineering Vikas Association (SEVA), Surat and Uka Tarsadia University, Bardoli, Surat has proposed to set up a Common Facility Centre at the UTU Campus, Bardoli, Surat. A tripartite MOU had been signed between TMMA, SEVA and UTU on 16th July, 2013. A concept note prepared by IL&FS was submitted to DHI. The Consortium needs financial assistance from the Government to the extent of 80% of the project DPR cost. 3) Skill upgradation initiative by TMMA(I) :

Capital Goods Sector Skill Council

Skill development and its continuous upgradation are very vital in maintaining precision for perfection of the products of our members. Availability of skilled manpower is growing into a major problem; this needs to be addressed before large scale investment is being made in Industry.

Federation of Indian Chambers of Commerce & Industry (FICCI) in collaboration with the Department of Heavy Industry and other stakeholders under the aegis of National Skill Development Council (NSDC) formed Capital Goods Skill Council (CGSC) and registered under the Society‟s Registration Act on 19th June, 2013. The objective of the CGSC was to create a robust and vibrant eco-system for quality education and skill development in the Capital Goods Sector in the country including development of Occupational Standards, Accreditation of training partners, and Assessment of workforce and creating a labour market Information System (LMIS) etc. TMMA was one of the founder members and represents the sub-sector interest as a member of the Governing Council and had contributed a part payment of Rs.2,00,000/- to CGSC. CGSC is now engaged in the process of finalizing the draft Occupational Standards for all types of trades/grades of workmen required by the CGSC vis-à-vis Textile Engineering

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Industry. The Project would be launched soon at Ahmedabad in one of the existing ITIs.

Mr. Bhagwati informed that TMMA in Association with the Textile Association (India) Ahmedabad Unit and Diagonal Consulting (India) organized an International Conference “Challenges facing Indian Cotton” on 9th & 10th April, 2013 at Indian Institute of Management, Ahmedabad. It was an interesting Conference which generated a lot of curiosity and enthusiasm among ginners, spinners, traders, academicians, students and the Government representatives who had participated in the Conference. The Seminar envisaged installation of 4 million spindles in Gujarat State during the 12th Five Year Plan.

He added that TMMA and Regional Office of the Textile Commissioner, Ahmedabad along with the domestic shuttleless loom manufacturers, their clients and non-banking financial institutions jointly organized a Seminar/Workshop on TUFS – Hire Purchase/Lease Financing Scheme for Power looms Weavers on 29th November, 2013 at Surat. The event was well received by the industry and the senior Government officials. The seminar was a great success.

The India ITME Society would be organising Global Textile Technology & Engineering Show 2015 (GTTES 2015) focusing on textile equipment and accessories from 20th - 22nd January, 2015 at Bombay Exhibition Centre, Goregaon, Mumbai. The objective of GTTES 2015 would be not only to showcase technology/machinery but also to address the needs of quality, allied services, especially for small and medium enterprises.

TMMA had been circulating the quarterly e-Zine Newsletter to all concerned through its online Content Management System. Members were requested to contribute technical articles on textile machinery and equipment for the ensuing issues.

The Chairman informed that TMMA had been striving hard to increase its activities in keeping with the aims and objectives of the Association. The following initiatives were taken:

Invited members to attend the Executive Council meetings held in different locations

Arranged lectures/Workshops of special interest, Peak Performance & Image Management, etc. during the Executive Council meetings or other outings.

Organised seminars at different locations Organised visits to factories/units of members Organised meetings with delegations from abroad Organised delegation visits to foreign countries

Mr. Prakash Bhagwati thanked the concerned Ministries and the Departments of the Government of India and the State Government for their co-operation and assistance. He also thanked the Textile Commissioner and his officers for their valuable guidance and assistance to the Textile Engineering Industry.

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He thanked his co-Office Bearers, Mr. J. Anand and Mr. Masafumi Kunito and Mr. Pratik Bachkaniwala without whose active assistance, he would not have been able to discharge his duties. He also thanked his colleagues on the Executive Council for their support. He thanked the members of the Association for giving him an opportunity to serve them as the Chairman.

He thanked the Indian Textile Accessories & Machinery Manufacturers‟ Association for their joint efforts in taking up the problems of the TEI with the concerned authorities.

He expressed his appreciation and sense of gratitude to the India-International Textile Machinery Exhibitions Society for their unstinted support in the activities of TMMA. In particular he thanked Mr. Sanjiv Lathia, Chairman, and Mrs. Seema Srivastava, Executive Director, for their co-operation and support to the Association.

He placed on record the appreciation of the work rendered by the Secretariat of TMMA.

Mr. Bhagwati stated that it was customary for the Association to present Export Excellence and R&D Awards at the Annual Session of the Association. In this Session, Nine Awards for Export Excellence and Two Awards for Research and Development for the year 2013-14 would be presented. He congratulated the award winners for putting in great efforts in exporting their products and carrying our significant innovation and development in textile machinery and equipment to win the Awards.

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After his address, Chairman Mr. Prakash Bhagwati conducted the Business Session of the Association. 1) Meeting Notice

The notice convening the meeting was taken as read with the permission of the members present. 2) Confirmation of Proceedings of the 53rd Annual General Meeting

The Chairman stated that the Proceedings of the 53rd Annual General Meeting of the Association held on 7th September, 2013 were circulated among the members and no comments had been received by the Association.

The Chairman proposed that the Proceedings of the 53rd Annual General Meeting be confirmed. Members present endorsed the proposal unanimously. The Chairman thereafter signed the Proceedings.

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3) Adoption of the Annual Report and Audited Statement of Accounts

The Chairman stated that the 54th Annual Report and the audited Statement of Accounts for the year ended 31st March, 2014 had been circulated among the members.

He then invited comments of the members on the Annual Report and the audited Statement of Accounts for the year ended 31st March, 2014. Since there were no comments, he proposed that the following Resolution be passed by the General Body. The Resolution was seconded by Mr. R.S. Bachkaniwala of Palod Himson Machines Pvt. Ltd., Surat.

“RESOLVED that the Annual Report and the Audited Statement of Accounts of the Association for the period

1st April, 2013 to 31st March, 2014 be and are hereby adopted”. The above Resolution was put to vote and the Report & Audited Statement of Accounts was adopted unanimously.

4) Recording of Election of Office Bearers/Executive Council members for the year 2014-15

The Chairman stated that the list of Office Bearers and the Executive Council members appointed/elected for the year 2014-15 was appended to the agenda. He informed the General Body the names of the new Office Bearers. The Joint Secretary read out the names of the appointed/elected members of the Executive Council. He congratulated the new Office Bearers and the Executive Council members and proposed that the election of Office Bearers/Executive Council members for 2014-15 be taken on record by the General Body. The General Body concurred unanimously to his suggestion.

5) Enrolment of new member during 2013-14

The Chairman stated that Dashmesh Jacquard & Powerloom Pvt. Ltd., Panipat; Orange Weaving Engineering Pvt. Ltd., Surat and Udayaravi Enterprises, Bangalore were registered as Ordinary Members and Anil Metal Industries, Ahmedabad; Dynamic Autolooms India Pvt. Ltd., Ahmedabad; Gates India Pvt. Ltd., Haryana; Laxmi Shuttleless Looms Pvt. Ltd., Ahmedabad; Mag Solvics Pvt. Ltd., Coimbatore; Rabatex Industries Ahmedabad; Schmersal India Pvt. Ltd., Pune; Simta Clear Coats (P) Ltd., Coimbatore; & Zeon Belts Pvt. Ltd., Jalandhar were registered as Associate Member – Manufacturers of the Association during 2013-14. The General Body confirmed the enrolment of the above members.

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6) Appointment of Auditors

The Chairman proposed that the services of M/s. Chirag Fadia & Co., Chartered Accountants, Mumbai, be continued during the year 2014-15. He then proposed the following Resolution:- “RESOLVED that M/s. Chirag Fadia & Co., Chartered Accountants,

Mumbai, be and are hereby appointed as Auditors of the Association for the year 1st April, 2014 to 31st March, 2015 in respect of auditing the accounts and filling the annual returns of the Association Main Account, Provident Fund, Gratuity Fund Accounts including filing of returns of Service Tax and Professional Tax on an honorarium of Rs. 35,000/- (plus taxes as applicable)”.

The Resolution was seconded by Mr. R. Rajendran of Lakshmi Machine Works Ltd., Coimbatore and the same was put to vote and passed unanimously. 7) Any other Matter

The Chairman informed that no written suggestions were received by the Secretariat before the dates specified in the Notice. Mr. Prakash Bhagwati, Chairman of TMMA (I) thanked the members of the Association for their co-operation.

**** **** **** Mr. Prakash Bhagwati then requested the Guest of Honour Mr. Y. Kusumgar, President & CEO, Kusumgar Corporates Pvt. Ltd., Mumbai to address the gathering. Address of Mr. Yogesh Kusumgar, President & CEO, Kusumgar Corporates Pvt. Ltd., Mumbai

Mr. Kusumgar thanked Mr. Prakash Bhagwati, Chairman, other Office Bearers and members of the Executive Council for inviting him to the 54th Annual General Meeting and Award presentation function of the Association and for giving him an opportunity to speak to our members about his suggestions and experience in the Textile Industry. Mr. Yogesh Kusumgar stated that globalisation has thrown up great challenges and opportunities to the textile industry. The Indian textile industry is not only huge but has its own character and identity. In the present context of globalization, the industry has not only to provide ever increasing per capita consumption of consumer textiles to 1.3 billion of our population, but also has to recognize that global production of consumer textiles is moving from developed nations to developing nations. In addition to consumer textiles, industry has to contribute towards Technical Textiles which are recognized as future of global textile industry. He added that textile engineering industry has to grow in terms

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of diversity, volume, value, quality, and competitiveness by which it becomes foreign exchange earner thereby contributing towards the national objective to maintain trade balance.

He enquired that can industry produce any textiles without machinery and equipments? It is in this context that the textile machinery segment of the textile industry assumes great importance. Textile machinery and equipments are as diverse as textiles and their products. He was happy that last year, local production of the textile machinery segment had grown by 15% amounting to Rs.6500 crore. The TEI had helped to contain import, not only in terms of value but also in terms of per centage. He was particularly impressed by producers of spinning machinery manufacturers whose contribution stands at 50% of total value machinery produced in our country.

He stated that some times statistics speak only half the truth. Even today, import of textile machinery is 33% more than the amount of machinery we have locally produced. Can textile machinery and equipment manufacturers not accept the challenge to contribute towards reducing the balance of trade?

His impression was that in terms of number and value, weaving machines had grown to a substantial level. In spite of declining trend for shuttle weaving, the TEI have reasonable domestic and export business. He enquired about the status of shuttleless weaving? He stated that even in shuttleless weaving machines, the global trend is towards Water-Jet and Air-Jet weaving machines. He asked how many Air-jet and Water Jet weaving machines have been imported in last decade? Has any entrepreneur taken serious interest to ensure that these machines are produced in the country either by joint ventures or otherwise?

Mr. Kusumgar stated that the Indian entrepreneurs have to enter into joint ventures and think with long term goals and not have short sighted vision. Efforts have been made in this direction but they have been sketchy and inadequate. But that won‟t neither help the entrepreneurs nor the country. What is really needed is an organized approach with a sense of vision and commitment. He recalled that the basics of weaving, namely shedding, picking and beating have remained unchanged. Revolutionary developments have taken place in weft insertion to increase productivity. Projectile, Rigid Rapier, Flexible Rapier, Air-Jet and Water Jet technologies have been in use. Here again, realizing the need for competitiveness, global producers of weaving machines have changed their basic approach from Projectile and Rapier to Air-Jet and Water-Jet.

He added that the TEI should learn to change with the time. Whether Indian machinery manufacturers like it or not, they have to learn from China which also has strong textile base. As textile industry grew in China, textile machinery manufacturers started producing Water-Jet Weaving machines locally. In the initial stage, it was more as an assembling. But with time, they started producing more and more number of parts to ensure precision and performance. For that matter, one knows that no producer of weaving machine produces all that is

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required by himself. Indian machinery makers also have to adopt the policy of ancillary unit or out sourcing.

While raising the question whether the country had the capability or not, Mr. Kusumgar observed the real problem as that our business entrepreneurs would like to think small and short. He felt that the Indian machinery manufacturers needed to change their mind set. They must think big and have a long term vision and strategy for the same. The business ventures needed to realize that in the initial period the balance sheet might be red, or yellow, but this should not make them despondent but should work renewed vigour and continuous efforts so that in the long term they would reap the benefits of their fruits of their labour with grand success.

Simultaneously, advancement in technology innovation and modernization should be carried in weaving machinery and parts through high investments in R&D to meet world standards and to make India a manufacturing hub for weaving machines and other textile machinery.

Similarly innovation and technology development should be carried out in the processing sector.

Mr. Kusumgar recalled the visit of the then Secretary to Ministry of Textiles Mr. S. Satyam to SASMIRA in the year 1992 when he was the President. He stated that a mere discussion for an hour on Technical Textiles where he called peers of industry to his office and within a month formed an Expert Committee on Technical Textiles. From that beginning, Textile Commissioner‟s office has done everything within their means to create awareness, to introduce TUFS, Technology Mission approach etc.

Mr. Kusumgar stated that Government is ready to provide deserving support for the inclusive growth of textile industry. It is for textile machinery manufacturers to reciprocate appropriately so that they can progress in this globalized world while contributing to the national cause as well. He thanked the Association for providing this opportunity to him to express his views and particularly to Mr.Prakash Bhagwati. But he would feel really honoured if either a Water-Jet or Air-Jet machine of global acceptance is indigenously produced within the next three years.

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Mr. Prakash Bhagwati then requested Dr. T. Ramasami, the Chief Guest to present the Awards to the winners. Dr. Ramasami presented Export Excellence and Research & Development Awards to the following winners for the year 2013-2014:

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Winners of Export Excellence Awards for 2013-2014 :

I) Apex Export Award - Textile Machinery and Parts

(i) Lakshmi Machine Works Ltd., Coimbatore

II) Segment Export Awards

(i) Textile Machinery Sector Rieter India Pvt. Ltd., Pune

(ii) Parts & Accessories of Textile Machinery InspirOn Engineering Pvt. Ltd.,

Ahmedabad

(iii) Testing & Monitoring Equipment Sector Premier Evolvics Pvt. Ltd., Coimbatore

III) Special Export Awards

(i) Spinning Machinery Sector : Truetzschler India Pvt. Ltd., Ahmedabad Ahmedabad

(ii) Weaving Machinery Sector : Peass Industrial Engineers Pvt. Ltd., Navsari

(iii) Processing Machinery Sector : Kusters Calico Machinery Pvt. Ltd., Vadodara

(iv) Textile Machinery Parts & Accessories Sector : Lakshmi Card Clothing Mfg. Co. Pvt. Ltd., Coimbatore

(v) Small Scale Sector – Textile Machinery Palod Himson Machines Pvt. Ltd., Surat

Winners of Research & Development Awards for 2013-14

1) Lakshmi Machine Works Ltd., Coimbatore for development of “Ring Frame LR J9”

2) Premier Evolvics Pvt. Ltd. Coimbatore for their developments “Ultimo”

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Mr. J. Anand, Vice-Chairman presented a Memento to the Chief Guest Padma Bhushan Dr. T. Ramasami and Mr. R.S. Bachkaniwala, Past Chairman of the Association presented a Memento to Mr. Yogesh Kusumgar, Guest of Honour.

**** **** **** In his Inaugural Address Padma Bhushan Dr. T. Ramasami thanked the Chairman and the Association for inviting him as the Chief Guest in the AGM. He said that his father was also a bureaucrat in the Govt. and he never liked the bureaucracy in the past. However he had to be a part of the system for number of years as Secretary, Dept. of Science and Technology. He congratulated the export and R&D award winners and expressed his desire that the industry should give more emphasis on R&D so that the country is benefitted in terms of technology and export. He stated that the textile sector is interwoven in the independence movement. There is huge legacy and history. He was always the admirer of the textile and the leather industry. He said that the textile industry was the largest employer from cotton to finished garments apart from agriculture. It had already been an important part in the nation building. He informed that the globalization movement had its threats and opportunities. The liberalization of the industrial and trade policies had seen a spurt in textile exports from $ 4 billion to $ 15 billion in 10 years during 90s. He mentioned that the TUFS which was introduced for textile industry was his brain child. All sectors of textile industry prospered and it took a commendable position being second largest in the world as there was a huge domestic market. The textile research institutes were set up long ago. They did a commendable job during the pre-liberalization period. More importance should be given to R&D as it can facilitate the GDP growth. He said if the industry analyzes the percentage spending on R&D over the total turnover of the industries it would be found that the average would be insignificant. He informed that the number of patents applied and received by the industry gave a direct measure of the R&D undertaken by the country. Dr. Ramasami pointed out that the textile industry had a high turnover but was very low in spending on R&D. Number of PHD‟s awarded in the country was also insignificant. The textile industry was also highly fragmented/segmented. There were large numbers of small enterprises whose long term investment capabilities were very less. Dr. Ramasami compared the textile industry with the leather industry which was also highly fragmented. However with Government‟s support and hard work its export grew from the level of just Rs. 84 crore in 1984 to Rs. 16,850 crore in

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2010, with highest average unit value realization. TEI could also make a similar turnaround. He suggested that the TEI needed to invest some money upfront to build R&D capability in the country. A proposal was being sent by him to the cabinet to do so for building small scale industries to invest public funds in projects for SME sector. He congratulated TMMA for initiating R&D of hi-tech loom with CMTI by forming an industry consortium. He felt that this would be the future for the country to develop indigenous technology under PPP mode at a desirable cost and time. He stated that India was in a unique position. People all over the world these days were talking about China. He explained that China had prioritized their Economic Freedom over political freedom, whereas India had prioritized political freedom over economic freedom. And for welfare of the state both the systems were going to succeed. However, India would have greater opportunity in textile sector than that of China. Because India had chosen the model of evolution which was more sustainable than that of China as it had chosen the model of revolution to do mass production for the entire world. And it should also be far more suitable in the longer run. Dr. Ramasami said that Indian could provide an alternate path to the world. The Textile Engineering Industry which had huge manufacturing requirement, could reap this opportunity as it had the cost and labor advantage. It was the only manufacturing sector which could give a sustainable GDP growth for the country, and it wouldn‟t be the services industry (IT) which grew the GDP at about 54%. He invited the TEI to enhance its manufacturing capabilities as it would be the only way. Textile industry had helped the country in distribution of wealth for decades otherwise there would be instability in the system. He opined that the industry had huge opportunity for rest of the world, to show the path of economic development, it‟s not the China model, but India‟s sustainable evolutionary model. He informed about the support on behalf of Ministry of Science & Technology for entrepreneurial business development through R&D Innovation. TEI should consider setting up a scaling fund for R&D and Innovation in the country. He told about a proposal which was with the Government to consider doing this by introducing a system to reward and incentivize domestic R&D. He briefed the guests that some time back he introduced a system called „Power of Idea‟ in the Ministry. It was shared with the IIM Ahmedabad and Economic Times to call for ideas which Ministry would support. After 3 weeks‟ of campaign they received approximately 16000 ideas, from which they shortlisted 850 people. The Ministry rewarded 250 people with cash awards to the tune of Rs 10 to Rs. 20 lakh. The IIM Ahmedabad gave them support for entrepreneurship development, which translated into 70-80 start-up companies.

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He encouraged delegates that similarly TEI could follow the above example because it was in a much better position than any other sector in the country. It was the industry who needed to reap the benefit. He suggested that the TEI instead of worrying about a meagre 4.5% of GDP growth, focus on enhancing its capacities and derive a sustainable GDP growth of 10%. He wished TMMA success in all its pursuits and he was certain that it would deliver beyond expectations for the progress of Indian Textile Industry.

**** **** **** Vote of Thanks

Mr. J. Anand, Vice-Chairman while delivering the vote of thanks, expressed his gratitude to Padma Bhushan Dr. T. Ramasami, Former Secretary, Department of Science and Technology, who had readily consented to be our Chief Guest on this great occasion and presenting the Export and R&D Awards to the winners despite his indisposition. Mr. Anand then thanked Dr. Ramasami for the wonderful speech, and he hoped that the members have been benefited by his valuable advice and guidance in furthering the interests of the Industry. He also thanked Mr. Yogesh Kusumgar for gracing the occasion and also the inspiring speech, valuable suggestions and advice to the TMMA members about the technology initiatives for modernization of the Indian Textile Machinery Industry. He also expressed his sincere thanks and gratitude to Mr.Yogesh Kusumgar, President & CEO, Kusumgar Corporates Pvt. Ltd., Mumbai for accepting our invitation and enlightening us with his valuable advice. He stated that Mr. Kusumgar is a visionary and his initiatives in the field of technical textiles have made the country proud. He then touched upon the performance of the industry during the year. He stated that the year that had gone by witnessed 15% growth in the Textile Machinery Industry, but the share of demand met by the domestic textile machinery industry has been dwindling due to secondhand machinery as well as other imports. During the year, various issues affecting the growth of the industry, especially the anomalies in duties – both excise and customs – import of used machinery for subsidy under Modernisation/Technology Upgradation Fund Scheme, etc. were taken up very strongly with the Government. Mr. Anand mentioned that in the Union Budget announced by the Finance Minister Hon‟ble Mr. Arun Jaitley, on 10th July, 2014, excise duty on textile machinery @ 10% has been continued for another period of six months. There

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was no other announcement made for the capital goods sector including textile machinery. He reviewed the performance of the Association and recalled new activities initiated such as factory visits, Seminars and Workshops etc. for the benefit of the members. He stated that the Association has been inviting all members to attend the Executive Council meetings and organizing lectures on matters of topical interest. These were apart from the presentations of problems to the Government with the request to extend short term and long-term support measures for the balanced growth of the Industry to meet the demand of machinery from the Textile Industry. He congratulated the Award winners for their efforts in the augmentation of exports and carrying out significant developments in textile machinery and equipments. He hoped that the members of the Association would continue to make extra efforts to be in the front line of both these spheres of the activities for which annual Awards are instituted by the Association. He also thanked the Award winners for their august presence to receive the Awards. Mr. Anand thanked Dr. Rajan S. Katoch, Secretary, Dr. Sutanu Behuria, the then Secretary, Department of Heavy Industry, Mr. R.K. Singh, Joint Secretary, Mr. Harbhajan Singh, erstwhile Joint Secretary, Mr. Sushil Lakra, Industrial Adviser and Mr. Sanjay Chavre, Mr. N.L. Goswami, Senior Development Officers, Ministry of Heavy Industries & Public Enterprises for their keen interest in the development of the textile engineering industry and continuous efforts made to support our causes. He also thanked Mr. Arun Maira, erstwhile, Member Planning Commission and Mr. Gaurav Dave, Chief Joint Secretary, NMCC for giving valuable advice and guidance. He thanked the officers of the Finance Ministry and DGFT for giving a patient hearing to the problems of this industry and for the actions taken by them. Mr. Anand expressed his sincere thanks to Mr. Sanjay Kumar Panda, Secretary, Ms. Zohra Chatterjee and Ms. Kiran Dhingra, the then Secretaries, Ministry of Textiles. He thanked Ms. Monika S. Garg, Joint Secretary, Ms. Sunaina Tomar and Mr. V. Srinivas, erstwhile Joint Secretaries, Ministry of Textiles for their support to the TEI. He thanked Ms. Kiran Soni Gupta, Textile Commissioner, Mr. A. B. Joshi, the then Textile Commissioner, for their co-operation and support in tackling the problems of the industry. He also thanked other Officers of the Textile Commissioner‟s office especially Mr. S. Balaraju, Mr. O.M. Prabhakaran and Mr. B.B. Bharti, Joint Textile Commissioners for their valuable guidance and advice in the progress of the Textile Engineering Industry.

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He expressed his gratitude to Prof. Devang V. Khakhar, Director, IIT-B and Dr. Anirban Guha, Assistant Professor of Mechanical Engineering Department, IIT-B, Mumbai for their co-operation in the academic and developmental activities of the Textile Engineering Industry at the Research & Development Centre set up by the TEI at IIT-B, Mumbai. Mr. Anand expressed his thanks to the Secretary and other senior officers of the Textiles Committee for their support to the TEI. He thanked India-ITME Society in espousing the cause of the Textile Engineering Industry. He thanked the Management and members of ITAMMA for the co-operation and assistance in the development of the textile engineering industry.

He thanked the media, both the print and electronic, for giving ample coverage to the activities of the TEI and for their presence at the function.

He also thanked the members of the Association for their co-operation. Mr. Anand then proposed a hearty vote of thanks to the Chair which was carried with acclamation.

**** **** ****

After the Business Session, Dr. Ramasami answered the queries raised by the participants. The meeting then came to a close and the members/invitees were invited to join for dinner.

SECRETARY GENERAL CHAIRMAN

Encl : As above

Date : 29.9.2014 Sc/Sr:

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ANNEXURE A

TEXTILE MACHINERY MANUFACTURERS’ ASSOCIATION (INDIA) MUMBAI

List of attendees at the 54th Annual General Meeting of TMMA (I) held at 7.00 p.m. on Wednesday, 27th August, 2014 at Sunset Lounge,

Pool Level, Hotel Trident, Nariman Point, Mumbai 400 021

1 Dr. T. Ramasami (Chief Guest)

-

Former, Secretary, Department of Science and Technology, Government of India

2 Mr. Yogesh Kusumgar Guest of Honour)

- President & CEO, Kusumgar Corporates Pvt. Ltd., Mumbai

3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36

Mr. Prakash K. Bhagwati Mr. J. Anand Mr. Pratik Bachkaniwala Mr. R.S. Bachkaniwala Mr. Dipak N. Shah Mr. Venkat Reddy Mr. R. Rajendran Mr. C. Arunachalam Mr. S.A. Saravanakumar Mr. N.K. Brahmachari Mr. Mehul Trivedi Mr. Jayesh Sivan Mr. S.S. Gandhi Mr. Samit S. Deshmukh Mr. Prashant Mangukia Mr. G.V. Aras Mr. L. Rathi Mr. R. Jagadeesan Mr. M.R. Seshan Mr. Anand Mr. P.V.K. Nambiar A representative Mr. V. S. Thumar Mr. Nitin Patil Mr. Ananda Nair Mr. Kirti Rathod Mr. Ashish Sharma Mr. Vasant Terwadkar Mr. Rohit Prakash Mr. S. Sathish Raj Mr. Ashok Veda Mr. Jagdish Gupta Mr. Varun Gupta Mr. Rahul H. Shah

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

InspirOn Engineering Pvt. Ltd. Veejay Lakshmi Engineering Works Ltd. Palod Himson Machines Pvt. Ltd. Palod Himson Machines Pvt. Ltd. Kusters Calico Machinery Pvt. Ltd. Kusters Calico Machinery Pvt. Ltd. Lakshmi Machine Works Ltd. Lakshmi Machine Works Ltd. Lakshmi Machine Works Ltd. Amritlakshmi Machine Works The Indian Card Clothing Co. Ltd. Kirloskar Toyoda Textile Machinery Pvt. Ltd. Premier Evolvics Pvt. Ltd. NRB Industrial Bearings Ltd. Yamuna Machine Works Ltd. A.T.E. Enterprises Pvt. Ltd. A.T.E. Enterprises Pvt. Ltd. Lakshmi Card Clothing Mfg. Co. Pvt. Ltd. Lakshmi Card Clothing Mfg. Co. Pvt. Ltd. Lakshmi Machine Works Ltd. Peass Industrial Engineers Pvt. Ltd. Peass Industrial Engineers Pvt. Ltd. Alidhra Weavetech Pvt. Ltd. Rieter India Pvt. Ltd. Rieter India Pvt. Ltd. Delux Bearings Ltd. Truetzschler India Pvt. Ltd. SKF India Ltd. SKF India Ltd. Vari Textile Machinery Veda Mktg. & Consultancy Pvt. Ltd. World Traders Manufacturing Co. World Traders Manufacturing Co. Surya Machinery Mfg. Pvt. Ltd.

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37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63

Mr. Tejas Trivedi Mr. S. Lathia Mr. G. T. Dembla Mr. Sudhir D. Dani Mr. R. Anand Mr. S.B. Rao Mr. N. D. Mhatre Ms. Seema Srivastava Mr. Shekhar Mr.dhankar Mr. Anirban Guha Mr. M.K. Talukdar Mr. M.P. Krishnan Mr. P.C. Jali Mr. V.Y. Tamhane Mr. Samuel Joseph Mr. Prakash Kinny Ms. Jigna Shah Mr. Tanveer Mr. Rakesh Kumar Mr. Ravindra Mr. Nishant Agrawal Ms. Esha Ghosh Mr. Hemendra K. Varma Mr. Chirag Fadia Mr. S. Chakrabarty Mr. Sachin Arora Mr. Patrick Fernandes

- - - - - - - - - - - - - - - - - - - - - - - - - - -

Anil Metal Industries Lathia Rubber Mfg. Co. Pvt. Ltd. Precision Rubber Industries Pvt. Ltd. Prabhat Engineering Co. Eastern Engineering Co. Universal Marketing Corporation Director General (Tech.), ITAMMA Executive Director, India-ITME Society Jt. Director, India-ITME Society IIT-B, Mumbai Textile Consultant Dy. Director, O/o. Textile Commissioner O/o. Textile Commissioner The Millowners‟ Association Indian Textile Journal Times International Textile Value Chain Textile Value Chain Tecoya Trend D. D. News B&K Securities CRISIL Research The 5S Institute Chirag Fadia & Co., Chartered Accountants Secretary General, TMMA (I) Jt. Secretary, TMMA (I) Dy. Secretary, TMMA (I)