With increase in yarn prices by almost 70%, backed by rising cotton prices and high export demand, domestic manufacturers of textiles and apparel are losing their competitiveness to international counterparts like Bangladesh and China. In a bid to let the domestic fabric and apparel manufacturers stay competitive, members of Powerloom Development and Export Promotion Council (PDEXCIL) have sought special export incentives for fabric and apparel makers back home. www.citiindia.org 5 CITI-NEWS LETTER A representation was made before Union minister of commerce and industry, Piyush Goyal, during a meeting held late on Monday. Gujarat is home to some 200 spinning units with an installed capacity of around 50 lakh spindles, according to estimates by All Gujarat Spinners’ Association (AGSA). According to PDEXCIL members, the government must support MSME exporters by providing intensives in the form of subsidy due to increased cost of yarn, logistics and raw materials over the past one year. PDEXCIL members held that India’s yarn exports to China have doubled in value terms and so have those to Bangladesh. “The two countries are key sourcing markets for apparel and textile for global brands besides India,” said Bharat Chhajer, former PDEXCIL chairman who was at the meeting. Estimates by PDEXCIL suggest that export of cotton yarn from India to Bangladesh as well as China have almost doubled. Yarn exports to China increased over the past nine months especially after the US and the UK imposed a ban on procuring cotton from China’s Xin Jiang province, as a result of which Indian yarn makers gained in terms of order volumes. “While this is good for yarn makers back home, the industry is not getting enough realisation. Secondly, with surging cotton prices, the price of cotton yarn has also gone up. As a result, input cost of domestic manufacturers is increasing and making them less competitive in the international market. As a result, we wish that the government provides some export incentives to textile and apparel makers, so that they remain competitive and exports sustain,” said Chhajer. The increase in cotton prices which has led to the increase in yarn prices was a key issue represented. In the past, industry players had demanded that yarn exports be restricted so that domestic demand can be met at competitive rates which will help makers stay competitive.
Source: Times of India
As per the guidelines released by the textiles ministry, the sites for the parks will be selected basis five metrics--connectivity to site, existing ecosystem for textiles, availability of utilities services at site, state industrial /textile policy, and environmental and social impact. The government has released operational guidelines for the PM Mega Integrated Textile Region and Apparel (PM MITRA) parks scheme, as per which the state government will transfer land to the special purpose vehicle - a legal entity with 51% equity shareholding of the state and 49% of the Centre. As per the guidelines released by the textiles ministry, the sites for the parks will be selected basis five metrics--connectivity to site, existing ecosystem for textiles, availability of utilities services at site, state industrial /textile policy, and environmental and social impact. In the first stage, expenditure on constitution of SPV, planning of the parks, project management agency selection, model request for qualification/request for proposal development, concession agreement and selection of master developer will be permitted.
Source: Economic Times
"None of the e-commerce companies refuted the charges made by the CAIT and other associations," CAIT said in an official statement Officials from the Department for Promotion of Industry and Internal Trade (DPIIT) on Tuesday virtually met those from top e-commerce companies including Amazon and Flipkart, trade bodies such as the Confederation of All India Traders (CAIT), among others to discuss the proposed e-commerce policy and varied issues. www.citiindia.org 4 CITI-NEWS LETTER CAIT Secretary General Praveen Khandelwal, who attended the meeting, called for an “unambiguous” e-commerce policy setting up a regulatory authority in the e-tail space. He flagged violations of foreign direct investment (FDI) laws by foreign-funded companies and called for mandatory registration of each commerce entity operating business activities, mandatory and strict KYC norms for the sellers and a clear distinction between marketplace and inventory model of e-commerce platforms. DPIIT is holding inter-ministerial consultations for the national e-commerce policy that will spell out the responsibilities of marketplaces, sellers, and ensure that consumers are able to take an informed decision before buying a product. Senior officials from Tata Group, Reliance, Snapdeal, Udaan, Pepperfry, Retailers Association of India, Laghu Udyog Bharati, Federation of Small Industries (FISME) were present at the meeting. An official present at the meeting said various challenges were flagged such as matters relating to GST or what makes for essential and non-essential items for swift movement of goods during curfews or mini-lockdowns. “It is surprising that on one hand they (traders bodies) were talking about having a level playing field, but on the other they said there should be a differentiation between foreignfunded marketplace and inventory model,” the official said, requesting anonymity. “None of the e-commerce companies refuted the charges made by the CAIT and other associations,” CAIT said in an official statement.
Source: Business Standard
The shares of Bhilwara Spinners, Nitin Spinners and Nahar Spinning Mills companies rose 252%, 316%, 711%, respectively, over the past one-year period Shares in textile business have witnessed a consistent uptick in the recent months due to various policy measures and on hopes of a firm outlook for the sector going ahead. Besides, the GST council's recent move to defer rate hike on textiles has buoyed investors' sentiment. In its latest GST council meeting, it was unanimously decided to defer a hike in rates on textiles from 5 per cent to 12 per cent, which was to come into effect from January 1. The matter will be discussed again in the next council meeting. The deferment came as several states flagged higher tax rates on textile products to be put on hold. The decision by the Council gave a breathing space to the industry. Accordingly, stocks of several textile firms zoomed. Till date, shares of Bhilwara Spinners, Nitin Spinners and Nahar Spinning Mills have seen a sharp rally. The shares of Bhilwara Spinners, Nitin Spinners and Nahar Spinning Mills companies rose 252 per cent, 316 per cent, 711 per cent, respectively, over the past one-year period. Notably, much of the rally in the textile stocks was due Centre's production-linked incentive (PLI) schemes in the key manufacturing sectors, which included the textiles sector. On September 8, 2021, the Union Cabinet had cleared the PLI scheme for the textile sector with an estimated budget outlay of Rs 10,683 crore. www.citiindia.org 19 CITI-NEWS LETTER The Centre, through the scheme, aims to provide a big fillip to the man-made fibres and technical textiles segments by promoting industries that invest in the production of some select textile categories. Consequently, shares Of companies such as Alok Industries rose 40 per cent, Trident 333 per cent, KPR Mill 315 per cent, Arvind 195 per cent, Welspun India 134 per cent, Gokaldas Exports 344 per cent, Lux Industries 147 per cent, Filatex India 109 per cent, and Ambika Cotton Mills 105 per cent during the period. In addition, analysts said that the stock price movement is likely to continue in the near future.
Source: Business Standard
FDI in India initially picked up in the mid and late nineties following a series of policy measures to liberalise and strengthen the FDI environment in the country. But they slowed down after the global financial crisis of 2008 because it affected India macro-economic fundamentals which continued till FY '2013-14. Even as the jury is still out on the extent of capital account convertibility, the reforms in the capital account have been strong enough to attract among the highest foreign directinvestment (FDI), finds a study by RBI economists. An analysis of the recent trends in FDI flows at the global level and across regions/countries suggests that India has generally attracted higher FDI flows and continued to remain among the top attractive destinations for international investors in line with its robust domestic economic performance and gradual liberalisation of the FDI policy as part of the cautious capital account liberalisation process. " An empirical analysis of factors influencing inward FDI, considering major countries in terms of its FDI stock position in India reflects that inward FDI is significantly influenced by the trade openness, economic growth prospects, market size, labour cost and capital account openness of the host countries" said a study published in the Reserve Bank of India's latest monthly bulletin. Besides, foreign trade had a substantial share in the business where import intensity in purchase remained higher than export in sales for foreign subsidiary companies, the study notes. FDI in India initially picked up in the mid and late nineties following a series of policy measures to liberalise and strengthen the FDI environment in the country. But they slowed down after the global financial crisis of 2008 because it affected India macro-economic fundamentals which continued till FY '2013-14. FDI again got a major push during September 2014 after the government launched the ‘Make in India’ initiative to facilitate investment, foster innovation and build best in class manufacturing infrastructure. The reform made a positive foreign investment climate in India and helped in increasing growth in FDI inflows mainly due to strong investment in top three industry recipients viz., ‘manufacturing’, ‘communication’ and ‘financial services', the study notes. During 2015 to 2019, India received a cumulative FDI inflow to the extent of $ 173.3 billion and the share of top five investing countries in India stood at 76.7 per cent. Three major sectors viz., ‘manufacturing sector’, ‘communication services’ and ‘financial services’ www.citiindia.org 9 CITI-NEWS LETTER together accounted for more than 50 per cent share in FDI inflows amounting US$ 89.6 billion during 2015-2019. Over the period the quality of FDI data has also improved in lines with globally best standards. A number of information bases on FDI Statistics for India have become available. Global concepts help in understanding the statistical methodologies that countries employ in compiling the statistics and the resultant statistics can be used for cross country comparison though countries with liberal investment schemes experience major challenges in estimation of foreign investment.
Source: Economic Times
As Indians are forced to stay at home amid a surge in Omicron cases, retailers across the country are struggling with massive losses. As Indians are forced to stay at home amid a surge in Omicron cases, retailers across the country are struggling with massive losses. The increase in Covid cases and subsequent restrictions have had a direct impact on business activities across India, which resulted in a business loss of 50% in the last 15 days, the Confederation of all Indian Traders (CAIT) said on Monday. Stating that the total retail trade in the country is about `150 lakh crore, the industry body said “The out-of-town buyer is not going out of his city, whereas the consumers are also going to the market to buy goods only when it is really important.” The estimated downfall, according to CAIT National President BC Bhartia and Secretary General Praveen Khandelwal, is roughly 35% in FMCG, 50% in electronics, 50% in mobiles, 35% in daily consumption items, 60% in footwear, 65% in toys, 70% in gift items, 30% in apparel, 40% in textiles, 30% in cosmetics, among others. www.citiindia.org 11 CITI-NEWS LETTER Ratings agency Crisil in a research note last week also said malls could see their rental revenues drop by 10% this fiscal. Similarly, Retailers Association of India CEO Kumar Rajagopalan, in a report by RAI, said retail business was growing steadily during most of December. However, the pace was dropping off towards the last week due to the fresh curbs. Although the overall figures seemed positive with 26% y-o-y growth in Dec 2021, the impact could be seen at category level with the beauty, wellness & personal care (-7%), furniture and furnishings (-5%) slipping into the red once again as compared to the sales the year before, Rajagopalan had added. On the bright side, however, Shopping Centres Association of India (SCAI) said mall owners will stand by their tenants as they did in the last two waves and offer rental relief.
Source: New Indian Express
These traders have also come up with samples of digitally printed sarees, catalogs, packaging boxes, and photographs supporting Modi and Yogi, to woo the voters. Sarees with printed pictures of Prime Minister Narendra Modi and Uttar Pradesh Chief Minister Yogi Adityanath are being manufactured by Surat, Gujarat traders. They will be dispatched to the state ahead of the UP assembly election campaign. Slogans have been printed on the sarees such as ‘Jo Ram Ko Laaye Hai, Hum Unko Laayenge’, ‘UP Me Fir Se Bhagwa Laharayenge’ (We will back those who have brought Lord Rama to us). Several other slogans and designs will also be distributed to promote the BJP in UP. These traders have also come up with samples of digitally printed sarees, catalogs, packaging boxes, and photographs supporting Modi and Yogi, to woo the voters. In every election, the cloth merchants in Surat would send materials like sarees, dresses, dupatta, party flags, etc. on the orders placed by the political parties. This time around, the traders have joined the self-campaigning for the UP polls. The sarees, digitally printed with BJP’s lotus symbol were unveiled by the traders at the Japan Market. www.citiindia.org 10 CITI-NEWS LETTER Lalit Sharma, president of Textile Yuva Brigade said: “For the first time in 70 years, a grand temple is being constructed in Ayodhya. Its full credit goes to the BJP and PM Narendra Modi. That is why this time we want to repeat the BJP rule in Uttar Pradesh. Digital prints and 3D print sarees will be made on order in Surat, which will then be sent to UP. The first 1,000 sarees will be given free of cost to women of various communities.’ Sharma added, “We will send lakhs of sarees to Uttar Pradesh ahead of the Assembly polls." Textile trader Manohar Sihag said, “We have printed digital sarees with lotus symbol on it. These sarees will be distributed free of cost to the traders in Uttar Pradesh. The traders in UP were a bit angry before January 1 due to the proposed 12% hike on GST, but they are relieved with the Centre’s announcement on the GST deferment”.
Source: New Indian Express
Mr Rajiv Merchant is considered as one of the few pioneers of the Indian bed and bath Industry our country has today Boutique Living and Layers, from the house Of Indo Count, are an end to end bedding solutions brand which has been leading in the Home Textile Industry for the past 31 years. Boutique Living brings its expertise in refined quality bed linen, currently experienced by linen brands across the globe. Layers, on the other hand, offers smart bedding with a wide range of beautiful designs powered with experience and innovation. Boutique Living and Layers offer superior products ranging from 300 thread count to 1000 thread count with their robust R&D technical know-how and in-house production. They are extremely agile with their sustainable practices at all manufacturing stages. Mr. Rajiv Merchant is considered as one of the few pioneers of the Indian bed and bath category. Over the past three decades, Mr. Merchant has introduced memorable bed and bath brands, innovative product lines and contemporary and western home textile designs to the Indian customers. In the past three decades, Mr Merchant has won more than 14 awards- from DuPont, USA in packaging innovation, Best Home- Ware Brand by Shoppers Stop, Most Promising Brand for Tangerine by ET and The Most Talented Retail Professional Of India IHV by CMO Asia in 2015 to name a few. His ability www.citiindia.org 16 CITI-NEWS LETTER to curate latest global design trends for domestic customer- oriented solutions as per Indian taste has made him one of the pioneering leaders of the industry. ICRA Limited has upgraded the credit rating for Indo Count Industries Limited’s longterm bank facilities and reaffirmed credit rating for the short-term bank facilities. For long-term bank facilities of the company, ICRA AA- with Stable outlook was upgraded from ICRA A+ with Outlook Positive. The said credit rating signifies a high degree of safety regarding timely servicing of financial obligations. Such facilities carry low credit risk, the company said in a filing on Monday. For the Short term bank facilities, the ICRA A1+ rating was reaffirmed. The said credit rating signifies a very strong degree of safety regarding timely payment of financial obligations. Such facilities carry lowest credit risk, it added.
Source: Apn News.
• With restrictions on mobility, retailers face a great risk of inventory markdowns as they are expected to resort to higher levels of discounting to attract customers Fresh curbs on operating hours for malls and non-essential stores and mobility restrictions amid India's third covid wave could shave off an estimated 8% of fashion retailers' revenues in the current financial year, credit rating agency Icra Ltd said on Tuesday. The agency lowered its revenue forecast for fashion retailers for the current fiscal, expecting retailers to touch 70-72% of their pre-pandemic revenues in FY22 as against the earlier projection of 78-80%. “This is based on an estimated 20% decline in store-operating hours during the fourth quarter vis-à-vis rating agency’s earlier expectation, leading to a commensurate decline in Q4 revenues. The restrictions are expected to be limited to Q4 FY2022 and estimated to be around six to eight weeks. Strong rebound in sales is, however, expected upon lifting of restrictions, akin to that witnessed post the second wave," Icra said. www.citiindia.org 17 CITI-NEWS LETTER ICRA has a “negative outlook" on the segment. It expects fashion retailers to return to pre-covid levels by the second quarter of the next financial year, assuming absence of any fresh wave of infections. The recent surge in covid cases, especially of the Omicron variant, has once again brought with it localised restrictions in the form of night curfews and timing restrictions. Delhi is currently observing weekend curfews as well. Aa a result, retailers are now stuck with excessive stocks and face a greater risk of significant inventory markdowns. “Typically, January and February are the months of the end-of-season sales (EOSS), where retailers attempt to liquidate their (winter stock) inventory, prior to the launch of fresh spring-summer collections. With restrictions on mobility, retailers face a great risk of inventory markdowns as they are expected to resort to higher levels of discounting to attract customers," said Sakshi Suneja, assistant vice president and sector head, Icra. While the third wave will dent profitability in Q4 FY22, the credit profile of large, listed entities is expected to remain adequately supported by strong balance sheets, Suneja said. Fashion retailers are sitting on ₹2,500 crore of cash and liquid investment balances visa-vis total debt of ₹2,100 crores as on 30 September 2021, said Suneja. These retailers reported strong recovery during Q3 FY22 nearing pre-covid level in terms of sales. A sluggish January and higher input costs--cotton yarn and manmade fibres--are likely to impact gross margins and rental negotiations. Retailers that have a greater share of stores in malls are expected to see a bigger impact on business as recovery in malls is typically delayed. Meanwhile, those with omni-channel presence are better placed to tide over the third wave. The ratings agency expects the share of online sales to double to 7-8% in FY22 from 3-4% pre-covid.
Source: Live Mint
Suggests govt can also fix export quota to cope with shortage Stakeholders of the textile sector have asked the government to announce an immediate ban on the export of cotton yarn or fix export quota to limit its shipments in the face of the commodity’s shortage in the domestic market. In a statement on Monday, Pakistan Hosiery Manufacturers and Exporters Association (PHMA) Central Chairman Shahzad Azam Khan called on the government to eliminate all types of duties and taxes on the import of industrial raw material, which was not manufactured in the country. “If the government is unable to slap a complete ban on the export of yarn to control its shortage, it can restrict exports by fixing a quota similar to the one announced in 2010 under SRO 119(I),” he suggested. “The textile industry will be forced to shut several units if the government fails to resolve its issues on a priority basis and millions of workers will be rendered jobless in such an event.” www.citiindia.org 24 CITI-NEWS LETTER Appreciating the government for clearing tax refunds of billions of rupees, he requested it to ensure the availability of raw material at reasonable rates to improve exports and avoid the imposition of taxes through the mini-budget. He pointed out that value-added textile exports had recorded a phenomenal growth last year due to the incentives given by the government.
Source: The Tribune
Bangladesh's exports to the Indian markets are expected to reach $2 billion for the first time at the end of the current financial year as the demand for Bangladeshi products is increasing to the neighbouring country. The Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) said this in a statement following a meeting between Indian High Commissioner to Bangladesh Vikram K Doraiswami and FBCCI President Md Jashim Uddin at the FBCCI office in Dhaka today. In the last one year, the trade between Bangladesh and India has increased by 94 per cent, it said. Addressing the meeting, Doraiswami said his country wants to improve trade and investment relations with Bangladesh in the areas of logistics, food processing, automobiles and garments. He also sought cooperation from FBCCI for strengthening the bilateral trade relations between the two countries. Md Jashim Uddin said the development of the logistics sector is the prime agenda of FBCCI. www.citiindia.org 22 CITI-NEWS LETTER The apex trade body is working to submit a 12-year plan to the government for the development of the logistics sector, he added. On India's trade potential with Bangladesh, the FBCCI president said India could be a major supplier of yarn and cotton to the garment industry soon. Doraiswami further said a new gate would be opened soon at Petrapol land port to facilitate the movement of trucks between the two countries.
Source: The Daily Star
THE scramble for personal protective equipment (PPE) and face masks early in the pandemic has led to the opening of a Medical Textile Testing Center under the Department of Science and Technology – Philippine Textile Research Institute (DoSTPTRI) in Taguig City. In an event held late December, the PTRI discussed the opening of the new institute and gave a virtual tour of its laboratories. “In the early days of the pandemic, we were faced with a massive global shortage of personal protective equipment,” said Celia Elumba, director of the DoST-PTRI. “This caught many off-guard, and in particular, exposed our healthcare workers to more risk than was necessary in the performance of their jobs to handle COVID-19 (coronavirus disease 2019) cases. PTRI resorted to submitting samples of face masks to foreign laboratories such as the South India Textile Research Association, because there was no local capability to test and evaluate the face masks based on globally recognized standards, according to Science and Technology Secretary Fortunato T. de la Peña. The masks Mr. De la Peña referred to were the PTRI-developed REwear face masks, which were cloth masks that were washable, re-wearable, and reusable. The tests were more expensive when done abroad; Ms. Elumba noted that it cost P220,000 for the masks to be tested overseas, not including logistics. The new facility by the DoST-PTRI aims to halve the time and money needed to test medical equipment. Ms. Elumba noted that testing equipment locally could be completed in two to three weeks compared to four to six weeks overseas. By April, the facility will be capable of conducting four of the five textile tests performed abroad. These include barrier testing, durability, toxicity, and construction for protective clothing; and tests for medical face masks, including bacterial filtration, differential pressure, synthetic blood penetration, particle filtration, absorbency, and permeability, among others. www.citiindia.org 21 CITI-NEWS LETTER The Medical Textile Testing Center may also be used for other purposes in the future. “We can expand it even more to other related industries,” said Donna Uldo, head chemist and deputy technical manager for PTRI Testing Services. This includes testing for health and hygiene products, occupational safety products, industrial textiles, and pollution safety products. The idea of a facility for testing textiles for medical use was floated as early as 2016. The aim then was different: it was to test hygienic products such as cotton swabs and diapers.
Source: Business World Online
American clothing retailer Gap has launched its first collection of non-fungible tokens (NFTs) to bring its brand and iconic product to new and existing customers in a rapidly evolving digital ecosystem. For this launch, the brand is introducing a gamified digital experience celebrating creatives and giving customers opportunity to own a limited edition, collectible Gap hoodie. For this release, Gap has collaborated with Brandon Sines, the artist behind Frank Ape, for a limited edition drop. Community, creativity, and self-expression are core values in Sines’ art, which embodies positivity and equality, and aligns with Gap’s values of modern American optimism, Gap said in a media release. “With this partnership with Gap, the creative cycle has come full circle as it allows me to express the beautiful messages of Frank Ape while collaborating with one of the most classic brands in history,” said Sines. “I cannot wait to share the physical and digital pieces we’ve been working on with Gap and Frank fans worldwide.” “Gap has always been at the intersection of music, art and culture, so we are excited about this growth opportunity in the digital space with artists like Brandon Sines,” said Chris Goble, chief product officer and general manager of Gap North America. As part of the company’s commitment to do the right thing for the planet, it has chosen to leverage Tezos, an open source blockchain, to create the customer experience. Tezos uses a more energy efficient approach to secure its network, allowing it to operate with minimal energy consumption and a low carbon footprint. www.citiindia.org 23 CITI-NEWS LETTER Available to shop exclusively on Gap’s website, the digital collectibles feature four levels: Common, Rare, Epic and One of a Kind. The gamified experience encourages customers to collect iconic Gap hoodie digital art at the Common and Rare levels to unlock the opportunity to purchase the Epic – limited edition digital art by Brandon Sines and a physical Gap x Frank Ape by Sines hoodie. "As part of our mission to create enduring customer relationships, our teams are constantly innovating,” said John Strain, chief digital and technology officer. “We are excited about the possibilities that a more planet-friendly blockchain technology can unlock for us and all the new ways it will enable us to connect with our customers.” Additional digital experiences are planned in the future, developed in partnership with culture shapers.
Source: Fibre2 Fashion
Project brings together brands, leading mills and technology innovators. The D(R)YE Factory of the Future is a new consortium project bringing together several innovations in textile pre-treatment and colouration that are set to accelerate the shift from wet to mostly dry processing. It is being coordinated by Amsterdam-headquartered Fashion for Good with partners adidas, Arvind, Kering, PVH Corp. and Welspun India, who will work closely with eight innovators – Alchemie Technologies, Deven Supercriticals, eCO2Dye, GRINP, Indigo Mill Designs, imogo, MTIX and Stony Creek Colors, Textile processing is responsible for the highest greenhouse gas emissions and significant water and chemical use in the fashion value chain. The selected innovations have the potential to reduce emissions by up to 89% and to cut water consumption by between 83% and 95%. “Textile processing is the largest contributor to carbon emissions in the supply chain and a shift to mostly dry processing is crucial for the path to net-zero,” said Katrin Ley, Fashion for Good’s managing director. “Given the interdependencies in the processing stages, a stand-alone assessment of solutions is not sufficient. By validating a combination of technologies, we can unlock the full potential of those solutions. This is why this project is so pivotal.” www.citiindia.org 25 CITI-NEWS LETTER Given the interdependencies in the processing stages, a stand-alone assessment of solutions is not sufficient. By validating a combination of technologies, we can unlock the full potential of those solutions The project will bring together several novel technologies with the aim of disrupting the current processing, pre-treatment, colouration (dyeing and printing) and finishing of textiles in the fashion supply chain. Although a number of innovations exist in this space, they are often explored in isolation. To achieve greater impact and accelerate the shift to more sustainable practices, this project will partner several innovations together to validate their impact and potential to scale in the fashion value chain. The aim is to demonstrate innovative solutions in pre-treatment and colouration, across five different materials – cotton, polyester, blends, denim and wool. Technologies tested will include plasma and laser treatments, spray dyeing, supercritical carbon dioxide (CO2) and foam dyeing. The results from the evaluations, as well as next steps for implementation, will be shared in a report in late 2022.
Source: Innovation in Textiles
