Spot buying from weaving industry was still very weak in polyester-cotton yarn and polyester yarn market. Recycled PC yarn prices registered a declining trend as prices dropped by ₹10 per kg. However, most counts and varieties of virgin PC yarn were sold at last prices. According to trade sources, many spinning mills may further cut production. “The market is not getting any sign of improvement in demand. Demand remained very weak as buyers do not want to take risk in current volatile market,” a Ludhiana based trader Ashok Singhal told Fibre2Fashion. Traders feel that there was a glut situation of blended and polyester yarn supplies. Many spinners have shifted to non-cotton operation. Sources said that PTA and MEG came down after continued pressure on crude oil. However, PSF and MELT was traded at previous prices. In Ludhiana market, recycled polyester-cotton yarn prices dropped further up to ₹10 per kg amid sluggish demand. Virgin polyester-cotton blended yarn remained stable. 30 count PC combed yarn (48/52) was sold at ₹270-285 per kg (GST inclusive), according to Fibre2Fashion’s market insight tool TexPro. 30 count PC carded yarn (65/35) was priced at ₹240-250 per kg. 20 count PC (recycled-O/E) PSF yarn (40/60) was traded at ₹180-190 per kg. 30 count poly spun yarn was sold at ₹180-190 per kg. High tenacity recycle fibre was priced at ₹95 per kg. The price of PSF remained unchanged at ₹127 per kg. Reliance Industries Limited had reduced prices last week and it has fixed prices of raw material as: PTA ₹94.70 (-0.90) per kg, MEG ₹56.80 per kg and MELT at ₹102.44 (-0.70) per kg, as per TexPro. Cotton prices in the north Indian market dropped further ₹100-200 per maund of 37.2 kg due to poor demand. According to traders, spinning mills are reluctant of fresh buying in bearish market. Cotton was sold at ₹8,800-9,000 in Bathinda, ₹8,000-8,300 in Hissar and ₹8,800-9,000 per maund in Sriganganagar.
Source: Fibre 2 Fashion
India-Australia trade pact will provide duty-free access to the Australian market for over 6,000 broad sectors of India, including textiles, leather, furniture, jewellery and machinery. Commerce and Industry Minister Piyush Goyal had said that the agreement would help in taking bilateral trade from $27.5 bn at present to $45-50 bn in the next five years. The new Australian government supports the trade pact signed with India, and they are expected to soon approach their parliament for approval of the agreement, Commerce and Industry Minister Piyush Goyal has said. IndiaAustralia Economic Cooperation and Trade Agreement (ECTA) signed in April needs ratification by Australian parliament before its implementation. "I met minister Mr Don Farrell, who looks after trade in the new (Australian) government, and he has confirmed that they will be taking the IndusECTA to parliament very soon and they support the agreement and would like to further expand their engagement with India in the months and years to come," Goyal told PTI. The agreement, once implemented, will provide duty-free access to the Australian market for over 6,000 broad sectors of India, including textiles, leather, furniture, jewellery and machinery. Goyal had earlier said that the agreement would help in taking bilateraltrade from USD 27.5 billion at present to USD 45-50 billion in the next five years. Under the pact, Australia is offering zero-duty access to India for about 96.4 per cent of exports (by value) from day one. This covers many products that currently attract 4-5 per cent customs duty in Australia. Labour-intensive sectors, which would gain immensely include textiles and apparel, few agricultural and fish products, leather, footwear, furniture, sports goods, jewellery, machinery, electrical goods and railway wagons. Australia is the 17th largest trading partner of India, while New Delhi is Canberra's 9th largest partner. India's goods exports were worth USD 6.9 billion and imports aggregated to USD 15.1 billion in 2021.
Source: Economic Times
• Chemicals, auto, electronics, pharma, textiles, and industrial machinery will lead export growth due to their readiness in terms of export potential and will account for 50-60% share of manufacturing exports Driven by production capacity expansion, government policy support, heightened M&A activity and investments, India's manufacturing exports are set to touch the $1 trillion mark by 2028, as per a report by Bain and Company. The growth will largely be driven by chemicals, pharmaceuticals, textile and electronics industry which have been scaling up and expanding into new export markets, said the report titled ‘The Trillion-Dollar Manufacturing Exports Opportunity for India’. India’s manufacturing exports stood at $418 billion in FY22, rising at a compounded annual growth rate (CAGR) of more than 15% over the last two years. Accordingly to a Bain analysis, key industries driving growth include chemicals ($110- 130 billion), electricals & electronics ($120-145 billion), textiles & apparel ($95-110 billion), automotive ($45-55 billion), pharmaceuticals ($45-50 billion) and industrial machinery ($70-75B). Electronics exports are expected to record a CAGR of 35-40% till FY28, followed by chemicals at 19-23%, and industrial machinery at 18%- 20%. Automotive exports are likely expand at a CAGR of 15-18% to reach $45 billion–$55 billion by FY28. With growing interest in electronic vehicles, the automotive industry will see electric vehicles and components contributing up to $5 billion to this export growth. The positive developments in the manufacturing sector, driven by production capacity expansion, government policy support, heightened M&A activity, and PE/VC-led investment, are creating a robust pipeline for the country’s sustained economic growth in the years to come." said Deepak Jain, partner, Bain and Company and co-author of the report. “Despite possible recessionary and inflationary pressure, fundamentals for India’s manufacturing sector remain strong. The mega-trends will continue to play out during the course of this decade which will accelerate India’s manufacturing-led exports," Jain said. Propelled by favourable megatrends in manufacturing, India is expected to scale up its manufacturing across the priority sectors. The country is on the cusp of structural shifts in manufacturing, enabled by a post pandemic global focus on supply chain diversification and complemented by the government’s robust policy initiatives like new free trade agreements, production-linked incentive (PLI) schemes to encourage local manufacturing, and fresh investments pouring into core industrial sectors. The manufacturing sector has been witnessing increased capex inflows and heightened M&A activity leading to a surge in manufacturing output and resultant increased contribution to exports. Private equity and venture capital funds-led investments have had a cascading effect, providing a boost to manufacturing exports. Last year, 18% of the total PE/VC investments were seen in the manufacturing sector, with the majority of them coming from pharmaceuticals, and chemicals. “India’s $1trillion manufacturing exports will be driven by growth in the priority sectors over the course of this decade. Chemicals, auto, electronics, pharma, textiles & industrial machinery will lead the growth due to their readiness in terms of export potential and will contribute 50-60% share of manufacturing exports. This will be followed by metals & minerals, food and transportation," said Sushil Pasricha, expert partner, Bain & Company and co-author of the report.
Source: Live Mint
Rising commodity prices, surging inflation, supply shortages, and shifting geopolitical realities across the world weigh on the growth outlook. Still, India will likely reign as the world's fastest-growing economy, the report noted. Reserve Bank of India (RBI) has projected a GDP growth of 7.2 per cent for the current fiscal ending March 2023. Indian economy is projected to grow 7.1-7.6 per cent in the current financial year despite shifting geopolitical realities across the world, a report said on Wednesday. In its India's economic outlook - July 2022 report, leading consultancy Deloitte India said that as 2021 was coming to a close, there was optimism in the air but the optimism received a jolt early this year as a wave of Omicron infections swept through the country and Russia's invasion of Ukraine happened in February. "These events aggravated the pre-existing challenges such as surging inflation, supply shortages, and shifting geopolitical realities across the world with no definite end in sight. "And the subsequent confluence of headwinds such as surging commodity prices and disruption in trade and financial transactions quickly deteriorated economic fundamentals that were trending up a few months back," the report said. Rising commodity prices, surging inflation, supply shortages, and shifting geopolitical realities across the world weigh on the growth outlook. Still, India will likely reign as the world's fastest-growing economy, it noted. "India is expected to grow by 7.1-7.6 per cent in 2022-23 and 6-6.7 per cent in 2023-24. This will ensure that India reigns as the world's fastest-growing economy over the next few years, driving world growth," the report said. Reserve Bank of India (RBI) has projected a GDP growth of 7.2 per cent for the current fiscal ending March 2023. The domestic currency will likely recover some lost ground against the US dollar, but not before early next year. India's relatively strong recovery and the global slowdown will improve INR's strength, it added. The rupee depreciated by 3 paise to close at a record low of 79.62 (provisional) against the US currency on Wednesday. "The desire of global businesses to look for more resilient and cost-effective investment and export destinations during difficult times, among other factors, could work in India's favour," Rumki Majumdar, Economist at Deloitte India, said. The report also said that uncertainties in the global business ecosystem will pose significant risks.
Source: Economic Times
Last year, the India-China bilateral trade hit a record high of over USD 125 billion crossing the USD 100 billion mark in a year when the relations touched a new low due to standoff by the militaries in Eastern Ladakh. The India-China trade is on course to cross USD 100 billion for the second consecutive year as it has gone up to USD 67.08 billion in the first half of this year amid a big surge of Chinese exports, official trade data released here said on Wednesday. China's exports to India have gone up to USD 57.51 billion, up by 34.5 per cent last year while Indian exports to China fell to USD 9.57 billion, a decline of 35.3 per cent compared to last year, according to the trade data released by China's General Administration of Customs (GAC). The trade deficit at the half-year mark stood at USD 47.94 billion. Last year, the IndiaChina bilateraltrade hit a record high of over USD 125 billion crossing the USD 100 billion mark in a year when the relations touched a new low due to standoff by the militaries in Eastern Ladakh. China's exports to India last year went up by 46.2 per cent to USD 97.52 billion while India's exports to China grew by 34.2 per cent to USD 28.14 billion. The trade deficit for India grew by USD 69.38 billion in 2021,. In May, China insisted that it is still India's biggest trade partner in 2021-22 as per its figures, referring to reports that the US has unseated it to take the top slot and attributed the "disparity" to different methods of calculating the trade volume. by New Delhi and Beijing. "According to the statistics of Chinese competent authorities, bilateral trade volume between China and India stood at USD 125.66 billion in 2021," Chinese Foreign Ministry spokesman Zhao Lijian told a media briefing when asked about reports of the US overtaking China to become the largest trade partner of India in 2021-22. "China remains the largest trade partner of India and for the first time the bilateral trade exceeded USD 100 billion in 2021," Zhao said. "The disparity in trade figures published by China and India is a result of different statistical measurement scales," he said. Overall, China's foreign trade of goods jumped 9.4 per cent year-on-year to 19.8 trillion yuan (about USD 2.94 trillion) during the first half of the year, according to GAC data.
Source: Economic Times
In April, Sri Lanka announced that it was suspending about $7-billion foreign debt repayment due for this year. Its total foreign debt stood at about $51 billion. India’s trade with Sri Lanka has almost come to a halt this month, as escalating political and economic crises there have led to fresh uncertainties around payments, exporters told FE. Indian exporters are jittery about taking fresh orders from Sri Lankan buyers due to mounting default risks. As such, the order flow from Colombo has almost dried up. Some exporters are apprehending a 30% drop in supplies to Sri Lanka in FY23 from a record $5.7 billion in the last fiscal. This is because authorities there have resorted to import curbs, limiting their purchases to only essential products, that, too, in limited volumes by using the credit lines extended by New Delhi to Colombo. However, the crisis is unlikely to have significant impact on India, given the limited bilateral trade value, a senior commerce ministry official said. Of course, in the first two months of this fiscal, India’s exports to Sri Lanka surged 55% year-on-year to $1.2 billion, as the island nation front-loaded its imports using the lines of credit. But the situation is changing for the worse now, as the credit lines are almost exhausted, said some of the exporters. Sri Lanka is facing its worst economic turmoil since 1948, triggered by a foreign exchange crisis, which, in turn, led to a political crisis. The island nation has declared a nationwide state of emergency hours after President Gotabaya Rajapaksa fled to the Maldives. The country has been forced to minimise its imports due to almost-depleted forex reserves. This has led to civil unrest, as millions struggle to buy essential items. Raja Shanmugham, president of the Tiruppur Exporters Association that represents the country’s largest garment hub, said bilateral trade has been badly hit. “Only those companies that are headquartered in Tiruppur and have some production units in Sri Lanka are supplying raw materials like fabric to their facilities there. Otherwise, not much trade is happening.” A major engineering goods exporter, who has been supplying to Sri Lanka in large volumes in recent years, said, “We don’t know how to deal with the situation. There is a lot of political instability there now, which has magnified our difficulties. If the political instability persists for another few weeks, along with economic crisis, trade will crash even further.” In April, Sri Lanka announced that it was suspending about $7-billion foreign debt repayment due for this year. Its total foreign debt stood at about $51 billion. According to Ajay Sahai, director-general with the Federation of Indian Export Organisations, there is no denying the fact that there could be temporary setbacks for Indian exporters due to the situation in Sri Lanka. However, things may improve once political stability returns. Crisis-ridden Sri Lanka had zeroed in on seven categories of goods, apart from petroleum products, for sourcing from India this year, utilising the lines of credit that New Delhi has provided to Colombo. These products include essential food items, medicines, cement, textiles, animal fodder, raw materials for key industries and fertilisers. But some exporters fear supplies of even these products may be affected, given the political instability. Before the latest escalation of the crisis, Lankan importers were placing their goods requirements accordingly with suppliers here. Indian exporters were required to approach State Bank of India, which had signed an agreement to extend a $1-billion credit line to the island nation, for payment. The island nation has been seeking additional line of credit to tide over the crisis. India has already provided $1.5-billion lines of credit to it since January. These include $1 billion for imports of food, medicine and essential items and another $500 million for petroleum products. On top of these, India’s assistance also includes a $400-million RBI currency swap and a deferral of a $500-million loan repayment. New Delhi’s major exports to Colombo include petroleum products, pharmaceuticals, steel, textiles (mainly fabric and yarn), food products and automobiles. Exports of many of these products to Sri Lanka are going to ease in FY23. Sri Lanka’s GDP contracted by a record 3.6% in 2020 and its foreign exchange reserves crashed by 70% in the last two years to about $2.31 billion by February, leading to a sharp depreciation of its currency.
Source: Financial Express
Political interest in the deal is high, but bureaucratic hurdles won’t be easy to jump over India and the European Union have once again embarked on an ambitious journey. Both understand the need for urgency in reaching their destination. But the path towards that end game remains a tumultuous one despite a new momentum in their bilateral engagement. This is a moment to seize and make the most of when it comes to India-EU trade ties and policymakers on both sides seem well aware of what’s at stake. Yet, few would be willing to bet even now that a free trade pact (FTA) can be reached without any glitches. Last month, after a hiatus of more than eight years, India resumed negotiations with the 27 nation bloc on the long-in-the-making FTA, that involves agreements on trade, investments and Geographical Indications (GI). This first round concluded on July 1 and the next round is slated to begin in Brussels in September. The two sides are aiming for “broad-based, balanced, and comprehensive” negotiations “based on the principles of fairness and reciprocity.” India and the EU started this engagement on trade as far back as 2007 but by 2013 it became evident that due to some fundamental disagreements on issues such as the movement of professionals and custom duties on items like automobiles talks won’t move forward. Since then, there has been widespread pessimism around this issue in New Delhi as well as in Brussels. But the world in 2022 looks very different from the world in 2013. Nations are having to reassess their long-held assumptions in a fundamental manner. This is the age of deglobalisation and economic decoupling. Suddenly, trade is being looked at through a strategic lens than primarily through an economic one. India and the EU are ready to forge a new partnership which speaks to the issues of today and responds to the challenges of the 21st century. This also means relooking at the FTA and trying to find solutions to some of the longstanding disagreements. For India, this is a time to establish its credentials as a reliable trading partner. The perception that it is difficult to do business with India has done great damage to its credibility as a rising power. Without adequate capabilities to attract other economic players, India will remain marginal to the global economic order. This is something that Indian policymakers seem intent on rectifying as the allure of China dims for the western nations. For the EU, China was the focal policy of attention for the last several decades as Brussels proudly proclaimed that it was not in the business of geopolitics. With China now being seen as a “systemic challenger” to the EU, there is a new keenness to build a robust partnership with New Delhi. During EU president Ursula Von der Leyen’s visit to India in April, the two sides agreed to launch a shared trade and technology council even though she underscored for New Delhi the importance of shifting from “dependency on Russian fossil fuels.” The EUIndia Trade and Technology Council is aimed at tackling “challenges at the nexus of trade, trusted technology and security, and thus deepen cooperation in these fields between the EU and India.” The EU is now looking at the Indo-Pacific with a new sense of importance and India is at the heart of this realignment. In the words of Von der Leyen, “For the European Union, the partnership with this region is one of our most important relationships for the coming decade, and strengthening this partnership is a priority for the European Union.” Indian policymakers are keen to make the most of this unprecedented opening in bilateral relationship. Given New Delhi’s perception in the West as reliable and trusted partner, this is a moment to push for the FTA to secure long term economic objectives. This year began with India signed the historic Comprehensive Economic Partnership Agreement (CEPA) with the UAE in February. This was followed by an “early harvest” trade pact with Australia in April that is likely to enter into a full FTA by end of 2022. India and the UK have also announced their intention to have a comprehensive free trade agreement by Diwali this year. New Delhi has now shown a new inclination to move forward with the India-EU trade talks as well. Commerce and industry minister Piyush Goyal made it clear that “all cards are on the table and we are coming with an open heart and an open mind… Agreements do not have to always be about gain or demands, I think agreements also have to be which is good for both negotiating teams and for the people.” After India’s rejection of the Regional Comprehensive Economic Partnership (RCEP), India’s friends and partners have been asking New Delhi to up its economic game in the Indo-Pacific and beyond. The shock of Covid-19 also alerted India and the rest of the word to reduce their dependence on China as global supply chains got disrupted to an unprecedented degree, alerting the world to the problems that are likely to emerge if no remedial measures are taken. The strategic logic of trade pacts among like-minded countries is a reality that is shaping global politics today. The Modi government’s push to strengthen the domestic manufacturing base through its “Make in India” campaign will only succeed if New Delhi is able to enhance its global trade profile. The India-EU FTA, in this scheme of things, has the potential to be a game-changer. And India will have to go much beyond what it has so far done with the UAE and Australia. The EU is an economic giant—the world’s third-largest economy by gross domestic product. It is India’s largest trading partner and investor as well as its primary source of cutting-edge technology. While the political interest in getting this deal done is high, bureaucratic hurdles remain and won’t be easy to overcome. There are divergences galore, from restrictive visa regime for professionals and tariffs on spirits and dairy products from the EU to data localisation and European regulatory frameworks. There is likely to be a political temptation to conclude an “early harvest” agreement but it would be much more beneficial if New Delhi can conclude a comprehensive FTA with the EU, cementing its burgeoning strategic partnership with one of the most critical global economic players. India’s march to a $10 trillion economy by the end of the decade depends on such outcomes.
Source: Financial Express
India’s trade with Sri Lanka has nearly stopped following the unrest in the island nation, leaving exporters worried about their payments. “Our exports and imports have come to a complete standstill. Exporters are very cautious because of the political crisis and payment issues,” Federation of Indian Export Organisations (FIEO) Vice-Chairman Khalid Khan said. However, he expressed hope that once the new government takes office in Sri Lanka, situation may improve. Sri Lanka, a country of 22 million people, is facing an unprecedented economic turmoil, the worst in seven decades, leaving millions struggling to buy food, medicines, fuel and other essentials. The grim situation has resulted in a civil unrest. The country, with an acute foreign currency crisis that resulted in foreign debt default, had announced in April that it is suspending nearly USD 7 billion foreign debt repayment due for this year out of about USD 25 billion due through 2026. Sri Lanka’s total foreign debt stands at USD 51 billion. FIEO Director General Ajay Sahai said political stability will help in resumption of trade. “At present, goods which are under SBI and Exim Bank’s line of credit are being exported to that country and they include key raw materials for industry, pharma, fertiliser, food and textiles,” Sahai said. In 2021-22, export of goods from India was worth USD 5.8 billion, while it was USD 550 million in April this year. In last fiscal year, import stood at USD 1 billion. It was USD 74.68 million in April 2022. A free trade agreement between India and Sri Lanka came into effect in 2000. In addition to being one of the largest trade partners of Sri Lanka, India is also one of the largest contributors to foreign direct investment into that country. Mumbai-based exporter and Chairman of Technocraft Industries, Sharad Kumar Saraf said not only exporters, businesses who have invested there are also “very” worried about the current turmoil there. The main investments from India are in the areas of petroleum retail, tourism & hotel, manufacturing, real estate, telecommunication, banking and financial services. “Trade has come down drastically. Exporters are worried about their payments. My business with Sri Lanka has dipped to 25 per cent since January,” Saraf added. Sharing similar views, Chairman of Farida Group Rafeeq Ahmed said trade has virtually stopped due to the ongoing crisis in Sri Lanka. “Exporters are confused. At the moment, nobody wants to engage with that country,” he added. Rajesh Menon, DG, SIAM (Society of Indian Automobile Manufacturers) said Sri Lanka is a key market for the domestic auto industry and “we hope that the economic situation improves in that country at the earliest, enabling reinstatement of the Indian automobile exports”. India’s exports to Sri Lanka include engineering goods, chemicals, iron and steel, agri commodities, mineral fuel, pharma products, plastic goods, and paper items. Imports include agri produce, textile goods, boats, fruits and nuts.
Source: The Print
The mechanism, which can be kicked off without delay with Russia, may be favourable for Indian government bonds as well. The surplus balance held in a special vostro account to be opened under the rupee payment mechanism can be used for investing in the local capital market by entities based in India's trading partners under the bespoke model. The launch of internationaltrade in Indian rupees could lead to annual savings of $30- 36 billion in hard currency and widen the scope for such trades with countries in the region, easing pressure on the exchange rate, experts told ET. The mechanism, which can be kicked off without delay with Russia, may be favourable for Indian government bonds as well. The surplus balance held in a special vostro account to be opened under the rupee payment mechanism can be used for investing in the local capital market by entities based in India's trading partners under the bespoke model. "When a country faces a record high current account deficit, such rupee-denominated trades with select countries save dollar outflows on account of imports," said NSE -1.11 % chief economist Madan Sabnavis. 'Need to Expand Currency Basket' "The move should also bring in rupee investments in local asset classes, including bonds and equities," Sabnavis added. A vostro account is one held by a bank on behalf of another. India's imports to Russia amounted to about $2.5 billion each in April and May - $30 billion on an annual basis. Some analysts expect this to swell to a monthly average of $3 billion over the fiscal year, or $36 billion in all. "This can potentially reduce India's hard currency outflows to the extent of $3 billion per month now while providing Russia with INR currency reserves to be deployed in India and provide welcome demand for India bonds," said B Prasanna, NSE 0.68 % 's head of global markets. Apart from that, the window opens up the possibility for countries such as Russia, Iran or even Sri Lanka to engage with New Delhi while they either face global economic sanctions or need financial aid. "Internationalising the rupee requires expansion of the basket of key currencies to seven or eight including our local unit from five currently," Sabnavis said. The currencies that form the majority of the world's forex reserves include the dollar, euro, renminbi and pound. The dollar remains the world's top reserve currency but its dominance has eroded to some extent. The greenback accounted for just under 60% of allocated reserves at the end of the first quarter of the 2022 calendar year, down from 65% in the same period in 2016, the FT reported, citing IMF data over a week ago. India's trade deficit, or excess of imports over exports, swelled to a record $25.63 billion in June, driven by imports of petroleum, coal and gold. Exports were muted, causing the gap to widen. "If the bulk of India-Russia trade comes under this INR settlement route, the net trade (Russia's surplus and India's deficit) will remain as INR balances of Russian banks with India's banking system, to be invested in Indian assets such as government securities," said Ananth Narayan, associate professor at the SP Jain Institute of Management and Research. Net trade was at $4.78 billion in the first two months of FY23 as India's imports from Russia in April and May added up to $5.04 billion, according to Bank of Baroda Economic Research data. This is a significant jump, compared with $10 billion for the whole of FY22.
Source: Economic Times
The remuneration of ₹57.6 crore paid to Gupta was almost 95% of total board remuneration and 51 times the remuneration paid to the independent directors, said SES. Trident's annual general meeting scheduled on July 23 will also seek shareholder approval for the reappointment of Gupta as a director and the annual remuneration too. Stakeholder Empowerment Services (SES), a proxy advisory firm, has raised concern over the remuneration paid to the non-executive chairman and promoter of textile fabric manufacturer Trident, Rajendra Gupta in FY22. The remuneration of ₹57.6 crore paid to Gupta was almost 95% of total board remuneration and 51 times the remuneration paid to the independent directors, said SES. Trident's annual general meeting scheduled on July 23 will also seek shareholder approval for the reappointment of Gupta as a director and the annual remuneration too. "Unless the company could explain the rationale behind paying ₹57.6 crore as commission to Rajinder Gupta, SES is raising concern regarding the appointment of Rajinder Gupta," the proxy advisory firm said in a report. SES has recommended shareholders vote against both company resolutions in the AGM. An email query sent to the company did not elicit any response. The company must take shareholders' approval if the annual remuneration payable to a single non-executive director exceeds 50% of the total annual remuneration payable to all non-executive directors. SES said that the promoter is extracting 'ownership premium' from the company in the form of 'excessive commission'. "Though the company has, inter alia, disclosed that Rajinder Gupta provides valuable advice and strategic inputs to the company on various critical business aspects, SES is of the view that his remuneration is significantly disproportionate to the other non-executive directors as well as executive director," said the proxy advisory firm. According to SES, Rajinder Gupta as a non-executive director will draw almost 30 times the remuneration paid to executive director Deepak Nanda who has a full-time role. Nanda was paid a remuneration of ₹1.92 crore for FY22. The company has reported a 54% growth in revenue at ₹6,998 crore in FY22, while its net profit has jumped 174% year-onyear to ₹834 crore. The stock rallied 275% between April 2021 and March 2022. Since April 2022, the stock has declined 30% to close at ₹37.15 on Wednesday.
Source: Economic Times
The directorate general of foreign trade under the ministry of commerce and industry has nominated president of the Tiruppur Exporters’ Association (TEA) Raja M Shanmugham as a non-official member of the board of trade. The Union government through a gazette notification dated July 8 had nominated 29 non-official members from different sectors to the board of trade, which is an advisory body on the foreign trade policy. Raja is the only member from Tamil Nadu. Speaking to TOI, Raja said as a member of the board of trade he would suggest improvements to achieve growth of the industry and exports. “Since I am from the textile background, I can highlight specific lacunas in the sector. For example, Tirupur lacks infrastructure supports like labour housing, and research and development facility. But I don’t have to confine only to the textile sector, but can give inputs relating to other sectors,” hesaid. The non-official member would act as a facilitator in the implementation of district export hub events, help the state government develop and pursue export strategies in line with the national foreign trade policy, review the export performance of various sectors, identify constraints and suggest industry-specific measures to optimise export earnings.
Source: Times of India
Fiber-to-fiber recycling at scale could be achieved by 2030, creating a new and sustainable circular industry in Europe. Today, more than 15 kilograms of textile waste is generated per person in Europe. The largest source of textile waste is discarded clothes and home textiles from consumers— accounting for around 85 percent of the total waste. The generation of textile waste is problematic, as incineration and landfills—both inside and outside Europe—are its primary end destinations. This has several negative consequences for people and the environment. But a significant transformation lies ahead that could create a large and sustainable new industry that turns waste into value. There are multiple ways to address the waste problem, including the reduction of overproduction and overconsumption, the extension of product lifetime, and designing products for increased circularity. One of the most sustainable and scalable levers available is fiber-to-fiber recycling—turning textile waste into new fibers that are then used to create new clothes or other textile products. This space is characterized by fastpaced innovation and a race toward scale. Some technologies, like mechanical recycling of pure cotton, are already established. Other technologies, like chemical recycling of polyester, have been subject to intense R&D and are on the brink of commercialization. Once fully mature, our estimates indicate that 70 percent of textile waste could be fiberto-fiber recycled. The remaining 30 percent would require open-loop recycling or other solutions like producing syngas through thermo-chemical recycling. However, today less than 1 percent of textile waste is fiber-to-fiber recycled due to several barriers to scale that need to be overcome. Collection, sorting, and preprocessing limit the amount of textile waste made available to fiber-to-fiber recycling. Collection rates are currently 30 to 35 percent on average, and a large share of the unsorted gross waste is exported outside Europe. Furthermore, most fiber-to-fiber recycling technologies have strict input requirements for fiber composition and purity—for example, elastane is problematic for several of these technologies. Consequently, textile waste needs to be scanned and sorted according to the relevant input requirements. As another example, jeans must have their zippers and buttons removed—a problem that needs to be solved by preprocessing. Advanced, accurate, and automated fiber sorting and preprocessing are not yet developed. Finally, to reach their full potential, the fiber-to-fiber recycling technologies must further expand their ability to handle fiber blends, lower their costs, and improve their output quality—these bottlenecks prevent the circular textile economy from scaling. Our analysis indicates that by overcoming these barriers, fiber-to-fiber recycling could reach 18 to 26 percent of gross textile waste in 2030, as illustrated in Exhibit 1. To reach this scale, we estimate that capital expenditure investments in the range of €6 billion to €7 billion would be needed by 2030. The entire value chain, including textile collection, sorting, and recycling, requires investments to reach scale. Our analysis indicates that this industry could—once it has matured and scaled—become a selfstanding, profitable industry with a €1.5 billion to €2.2 billion profit pool by 2030. The textile recycling value chain could create a new, valuable raw material that enables more apparel production in Europe, which may lead to additional value creation above what is quantified in this report. Beyond the direct economic benefits, scaling textile recycling unlocks several environmental and social benefits. For example, in our base-case scenario, about 15,000 new jobs could be created and CO2e emissions could be reduced by approximately 4 million tons—equivalent to the cumulative emissions of a country the size of Iceland. By quantifying into monetary terms several other impact dimensions like the secondary effects to GDP from job creation, CO2e-emission reduction, and water- and land-use reduction, our analysis shows that the industry could reach €3.5 billion to €4.5 billion in total annual holistic impact by 2030—coming to an annual holistic impact return on investment of 55 to 70 percent (Exhibit 2) To capture this opportunity, collaboration and innovation will be key The identified bottlenecks preventing scale are significant and will require several stakeholders to act boldly. Textile recycling in Europe will not reach a favorable state by 2030 unless major action is taken quickly. This report identifies five main ingredients for success. • Critical scale. The textile recycling value chain cannot function at small scale. Critical scale across the value chain is required to provide sufficient feedstock2 to the necessary fiber-to-fiber recycling technologies, and to allow for those recycling technologies to operate at scale. Therefore, the industry must set bold scaling targets and meet them. • Real collaboration. Several of the main challenges ahead are best solved in a highly collaborative manner. Business leaders across the value chain, investors, and leaders of public institutions would need to come together in an unprecedented way to engage in a highly operational joint effort to overcome the barriers to scale. • Transition funding. Although our analysis indicates that the textiles recycling industry could—once it has matured and scaled—become self-standing and profitable, transition funding will be needed in the near term. Examples of such funding include subsidies (potentially Extended Producer Responsibility [EPR] funding) and a green premium (potentially shared by brands and consumers). Public–private solutions may be needed. • Investments. Several parts of the value chain must be built out almost from scratch, which requires significant capital expenditure. Our analysis indicates that sufficient economic value can be realized to make up for the required risk. Private investors would lead this journey by taking initiative to finance building out the value chain. • Public-sector push. Leaders of public-sector institutions would have to help drive textile recycling. Measures include driving up collection rates, limiting the export of unsorted textile waste, engaging in demand stimulation, creating harmonized frameworks for increased circularity, as well as other initiatives. Fiber-to-fiber recycling at scale can help address Europe’s waste problem by turning waste into value. The European apparel and textile industry can start expanding the required infrastructure for collection, sorting, and closed-loop recycling today. This report establishes the opportunity at stake for textile circularity and highlights actions required to capture it. Furthermore, we hope this report can be a foundation for further research and collaboration to establish textile recycling at scale in Europe.
Source: Mc kinsey
Although textile export was riding high in the first half of the year with a growth of 23%, insiders are pessimistic that the rest of 2022 will not match up. Although textile export was riding high in the first half of the year with a growth of 23%, insiders are pessimistic that the rest of 2022 will not match up. Nguyen Van Thoi, Chairman of the TNG Investment and Trading JSC., was concerned that Fed’s benchmark hikes amid high inflation would depress consumption demand in the US. Similar issues would also hamper export to the European Union. As the US and EU are two major importers of Vietnamese garments, the falling demand would drag down their imports, to the detriment of Vietnamese textiles. “Vietnamese textiles set an export target of 43-44 billion USD this year, but I don’t think it would achieve the target," he said. "Garment export is likely to grow around 5% year-on-year." He also revealed that previously foreign firms placed orders for Vietnamese garments six months in advance, but now they have to reduce the time window to three months due to the high stock of unsold products caused by low domestic spending. Than Duc Viet, General Director of the Garment 10 Corp., claimed that the number of placed orders for his company’s products is large enough to keep it busy until late 2022. However, there is a risk that foreign firms might reduce or cancel the orders to deal with mounting stock of unsold products. Higher fuel and material costs, coupled with weak demand from abroad, are eroding the company's profit margin. Factory 8 of the Ho Guom Group revealed that it normally received production requests of 300,000- 400,000 garments in the past, but from Q2 total production orders reduced to less than 200,000 garments. "The outlook for garment export is not very bright until year-end. Previously, our partners were always eager to place orders, but now their demand has become lukewarm", said Khong Van Tai, Director of the factory. Tran Nhu Tung, Chairman of the Thanh Cong Textile Garment Investment Trading JSC., shares the concern. He held that demand for Vietnamese garments would drop further in Q4 since the US has begun to implement Uyghur Forced Labor Prevention Act, making firms more cautious about garment imports. "Firms are uncertain about the future, so they cut down on garment import to avoid risk", he explained. Vu Duc Giang, Chairman of the Vietnam Textile and Apparel Association, forecast that global demand for Vietnamese garments would become more volatile in the second half of this year. High inflation in the US and EU would cause prices to skyrocket, effectively eroding consumers' purchasing power. As weak purchasing power reduces consumer demand, textile firms are likely to feel the pinch over the rest of the year. To deal with the situation, the chairman recommends that Vietnamese producers seek customers elsewhere and be less dependent on the US and EU markets. "Vietnamese producers have to find new partners in other markets to fill the demand gap left by those in the US," he added. The general director of the Garment 10 revealed that his company has to adjust its production plan more frequently to deal with volatile demand. "Previously, we adjusted the production plan quarterly or monthly, but now we have to do that weekly or daily. We have no other choice because it is the only way to adapt to the volatility", he said. He recommended that Vietnamese producers go greener to gain ground in highlydemanding markets, thereby offsetting the demand contraction in traditional markets. He also recommended the producers not shed staff but temporarily shift their production to other products to keep the ball rolling while waiting for demand recovery. Lastly, he urged the producers to add more value to their existing products to carve out a niche in traditional markets.
Source: Mc kinsey,
The International Apparel and Textile Fair will hold its 14th edition in Dubai from November 28 to 30 to showcase clothing, accessories, and more from global manufacturers, including India. The event has opened exhibitor registration and has scheduled over 100 exhibitors to feature in its upcoming November edition, the event organiser announced on Facebook. The trade show will bring together buyers, retailers, and wholesalers from the Middle East and North Africa region who are looking to source apparel to retail in international markets. Over 3,000 buyers from the MENA region will browse a wide selection of apparel, textiles, accessories, homeware, footwear, leather goods, jute products, handbags, machinery, and more. With the apparel retail market growing swiftly in the Gulf region, there also exists significant opportunities for businesses to establish themselves as leading sourcing brands in the region, according to event organisers Nihalani Events. The three-day bi-annual trade show will take place at the Dubai World Trade Centre and will feature networking opportunities for brands with buyers from countries including Saudi Arabia, the UAE, Kuwait, and Bahrain among others. The event organisers will share information about connecting with businesses in the MENA region to help apparel manufacturers to find the right kinds of buyers for their targets.
Source: Fashion Network
