The minister also called for integration of One District One Product initiative with ONDC Commerce and industry minister Piyush Goyal on Monday said that India is looking at getting duty-free access for different products identified under the government’s One District One Product (ODOP) initiative to promote exports of gold jewellery, toys, handicrafts and handlooms, and other items. “We are doing Free Trade Agreements (FTAs) where we are looking at duty-free access for all these products, so we can create international acceptance of these products,” the minister said at the launch of One District One Product gift catalogue and storefront on public procurement portal government e-marketplace Currently, India is negotiating trade agreements with the United Kingdom, Canada and the European Union. ODOP was launched with the aim of converting each district of the country into an export hub. This will be done by identifying products with export potential in the district, addressing bottlenecks for exporting these products, supporting local exporters and producers to scale up manufacturing, and finding potential buyers outside India. The minister also called for the integration of the ODOP initiative with the Open Network for Digital Commerce (ONDC). “ONDC would help in further expanding the frontiers of ODOP by bringing buyers and sellers together on a democratic platform,” he said. Goyal asked ministries, departments and other government bodies to consider ODOP products exclusively for gifting, both within and outside India. The G20 summit, which is set to take place in India soon, is a great opportunity to showcase ODOP products. The minister also suggested a five-point approach for ODOP success and that includes - developing one-stop gifting destinations with high quality suppliers; involving students of institutions like National Institute of Design; and extensive training sessions for artisans.
Source: Business Standard
Meanwhile, the state government had launched a scheme to distribute sarees on every Bathukamma festival for free. The State government will establish a new Research and Development (RD) wing for textiles to bring out new designs and provide funds to encourage the sector, an official release on Sunday.The State government has supported the weavers by implementing many welfare and development schemes. Siricilla and other places were always in the news because of weavers committing suicides. But, after the formation of Telangana State, suicides by weavers have stopped. Minister for Handloom and Textiles, IT, and Industries KT Rama Rao called upon the government officials and citizens to wear handloom clothes every Monday to support handloom workers.The state government provides a 40 per cent subsidy on yarn, dyes, and chemicals purchased by handloom workers, master weavers, handloom associations, and TSCO under the Cheneta Mitra scheme. Till now, 20,501 beneficiaries have been given a subsidy of Rs 24.09 crore, the release said. The government has decided to continue Telangana Handloom Weavers’ Savings Fund, Savings, and Security Scheme (TFSSS) for another three years, and ‘30 crore has been released Meanwhile, the state government had launched a scheme to distribute sarees on every Bathukamma festival for free. The scheme helped the power loom operators to get employment throughout the year. In 2021 alone, nearly 94 lakh sarees, worth Rs 333.14 crore, were distributed.
Source: New Indian Express
India is either negotiating or planning to start talks for a flurry of high-stake FTAs with key economies Commerce and industry minister Piyush Goyal on Monday said India is trying to get duty-free access for a broad range of products, which are identified under the One District One Product (ODOP) initiative, under trade agreements. He also called for the integration of the ODOP initiative with the Open Network for Digital Commerce (ONDC) platform. This will help expand the ODOP frontiers by “bringing buyers and sellers together on a democratic platform”. Delivering a speech after launching the ODOP Gift Catalog and ODOP Storefront on the government e-marketplace (GeM) here, the minister said these products — including gold jewellery, handicrafts, handlooms and toys — present huge opportunities for exporters. Through the ODOP initiative, the government intends to convert each district into an export hub by identifying at least one product of that district that has huge export potential. “We are doing free trade agreements (FTAs) where we are looking at duty-free access for all these products. So we can create international acceptance of these products,” Goyal said. India is either negotiating or planning to start talks for a flurry of high-stake FTAs with key economies, such as the EU, the UK, Canada, Israel, members of the Gulf Cooperation Council (GCC) and Australia. While New Delhi has clinched an interim deal with Canberra, talks for a full-fledged FTA could start soon. Together, these economies (excluding the UAE, a part of the GCC, with which an FTA is already signed) contributed as much as $108 billion, or 26%, to India’s merchandise exports in FY22. Goyal has suggested a five-point approach for the ODOP’s success. This includes developing one-stop gifting destinations with high-quality suppliers; involving students of institutions like the National Institute of Design to boost design; and imparting extensive training to artisans. “Let us look at creating art and crafts villages at the G20 destinations across India. This can become the seed which will help artisans for years and help tourism, and will give visibility to ODOP,” Goyal said. In addition to the ONDC, programmes like Startup India and Make in India would further support the ODOP initiative. To make it a success, the commerce ministry is also addressing bottlenecks over shipping out of these products, supporting local entities to scale up manufacturing for exports, and identifying potential customers overseas.
Source: Financial Express
Due to the unavailability of working capital and other financial constraints, operations in all NTC mill units are presently under suspension. Inter-ministerial consultations are underway on the likely closure of the ailing National Textile Corporation (NTC), which has 23 mills with obsolete technology and has remained non-operational. However, its land may be monetised, sources said. Due to the unavailability of working capital and other financial constraints, operations in all NTC mill units are presently under suspension. To protect the interest and welfare of employees, they are being paid wages and statutory dues as per mutual agreement between the management and representing workers of the mill. NTC has 7,825 employees working/on the rolls at its mills. “The Cabinet will take up the NTC closure after the consultation process is over,” an official said. Even though it made profits due to monetisation of land in FY17, NTC has been incurring operational losses since FY07. The main reasons attributed to such loss are high input cost, high worker turnover/ wage cost, lower market competitiveness, etc. In FY20, the latest year for which financials are available, the company reported a net loss of Rs 350 crore, an increase of 13% on year. Under the Board for Industrial and Financial Reconstruction (BIFR)-recommended revival scheme, which was extended up to March 31, 2012, around Rs 5,500 crore was spent towards meeting various expenses, like clearing up outstanding statutory dues, one-time settlements (OTS) with financial institutions, interest payment, and compensation under modified VRS (MVRS). Moreover, NTC has spent an amount of Rs 1,646 crore on the modernisation of its mills under the revival scheme. However, despite such an infusion of funds, the corporation has not been operationally profitable, partly due to the rise in raw material costs. The main business of NTC is the manufacturing of yarn and cloth.
Source: Financial Express
Credit and Finance for MSMEs: . The NPA rate for MSMEs availing ECLGS was 4.8 per cent, lower than 6.1 per cent for MSMEs who were eligible but did not opt for it, the report noted. Credit and Finance for MSMEs: The Modi government’s post-Covid flagship credit scheme for MSMEs Emergency Credit Line Guarantee Scheme (ECLGS) not only helped MSMEs to revive and scale their business but also enabled them to start new trades, said a new report by credit bureau TransUnion CIBIL on Monday. Over the course of four quarters since availing ECLGS, the average number of new trades opened per MSME borrower went up by 15 per cent compared to only 6 per cent for the eligible borrowers who didn’t avail of the credit scheme, the ECLGS Insights Report said. Among the top beneficiaries, ECLGS helped revive contact-intensive sectors such as mobility and consumption-dependent sectors like services, traders, and construction, along with labour-intensive industries like textile and food processing. Traders had the highest share of 20.9 per cent in the disbursement amount followed by services businesses (19.2 per cent), textiles (8 per cent), food processing (5.7 per cent), construction (4.1 per cent), etc. Sectors with the lowest disbursement share were auto components, hospitality, paper and paper products, infrastructure, gems and jewellery, etc. In terms of asset quality, the study noted that ECLGS was also able to help borrowers manage their asset credit better in comparison to those who were eligible for the credit scheme but didn’t avail it. The NPA rate for MSMEs availing ECLGS was 4.8 per cent, lower than 6.1 per cent for MSMEs who were eligible but did not opt for it. Moreover, the roll forward rate from 1-89 days past due (DPD) to over 90 DPD was lower at 22. 7 per cent for borrowers who borrowed credit through ECLGS versus 27 per cent for eligible non-borrowers. “This again indicates that liquidity provided under ECLGS has helped in arresting probable defaults and protected not only the borrowers but also lenders from accumulating bad loans,” the report said. “The liquidity shortage created post the pandemic, due to paucity of inflows while at the same time continuation of obligatory outflows, could have posed a possible threat of insolvency for businesses. The timely infusion provided through ECLGS has significantly helped in resurgence of businesses across geographies and at the same helped in controlling NPAs in MSME lending,” said Rajesh Kumar MD and CEO, TransUnion CIBIL. On the supply side, the report said while public sector banks were early adopters in implementing ECLGS, private banks rapidly caught up. The contributions of public and private banks in terms of the amount disbursed were 42.8 per cent and 43.1 per cent respectively, while non-bank financial companies (9.4 per cent), small finance banks and rural regional banks (4.7 per cent) disbursed the remaining amount. However, public sector banks processed the highest number of applications with 50 per cent share followed by 23 per cent share each for private banks and NBFCs. Small finance banks and regional rural banks, etc., had a combined share of 4 per cent in applications processed. In terms of borrower type, 83 per cent who availed ECLGS up to March 2022 were micro enterprises while small businesses and large enterprises were 15 per cent and 2 per cent respectively of the total count. According to the Reserve Bank of India (RBI)’s Financial Stability Report, loans amounting to Rs 3.32 lakh crore were sanctioned under ECLGS till April 30, 2022, of which Rs 2.54 lakh crore were disbursed. The sanctioned amount had jumped to Rs 3.48 lakh crore loans till June end.
Source: Live Mint
• A trade expert said a proposed investment protection agreement was a contentious issue the last time both countries sat across the negotiating table Free Trade Agreement talks with India’s eleventh largest export market Canada have gathered pace with the two sides set to begin the fourth round next month. New Delhi and Ottawa relaunched trade negotiations in March after a gap of nearly 10 years. While India is looking for duty-free access for its textile and apparel products along with easier norms for the movement of Indian professionals, Canada could look for larger market access for its wine, dairy and agricultural products. “I think both the countries realize that there is a great trading potential. Canada has been a very close trading partner and that’s the reason the trade negotiations restarted after a lull. We will begin the fourth round next month," a commerce ministry official said. A trade expert said a proposed investment protection agreement was a contentious issue the last time both countries sat across the negotiating table. On the other hand, India would seek the easing of technical and sanitary and phytosanitary barriers to trade, the expert added. “We would like to see the negotiations on textile and apparel in the initial rounds. Dutyfree access for our apparel exports to Canada can boost exports by 10 to 20%. Canada is a relatively smaller market compared to the UK and the EU but it will create more labour-intensive jobs in the country," Narendra Kumar Goenka, chairman, Apparel Export Promotion Council (AEPC) said. “Canada has an interest in agriculture…they have a very diverse and rich agricultural basket. Lot of pulses come from Canada. It is also strong in minerals and these are the sectors they would like to be opened up. Also dairy is important to Canada and they could be less sensitive to the dairy trade than the UK," said Arpita Mukherjee, a professor at ICRIER, an economic policy think tank. “Besides, Canada has not banned Indian dairy like a few western countries. Although there is a high tariff, negotiations on that are expected. There will also be a huge interest in education and services." Canada’s minister of international trade Mary Ng earlier expressed her appreciation for the spirit of cooperation and compromise that has been a hallmark of the negotiations and reaffirmed Canada’s goal of maintaining momentum in the fourth round of negotiations, which are scheduled to take place in September, as per a statement released by Global Affairs Canada. Queries sent to the commerce and industry ministry remained unanswered till press time.
Source: Live Mint
Union Minister for Commerce and Industry, Consumer Affairs, Food and Public Distribution and Textiles, Shri Piyush Goyal today called for the integration of One District One Product (ODOP) initiative with Open Network for Digital Commerce (ONDC). The Minister said that ONDC would help in further expanding the frontiers of ODOP by bringing buyers and sellers together on a democratic platform. He was delivering his address after unveiling the unabridged ODOP Gift Catalog containing 300 plus products and ODOP Storefront on GeM in New Delhi today. Terming ODOP as an earnest effort to highlight the tremendous potential that the rich culture and tradition that India has to offer, Shri Goyal said that India's districts and villages are home to crores of talented weavers, artisans and craftsmen. The Minister observed that for many decades, the fruits of development were asymmetric and confined to some regions. He underscored that there has been a fundamental shift in thinking of the government in the last 8 years and said that ODOP is aligned with this vision of taking prosperity to each and every part of the country. Shri Goyal stressed that India can't develop unless remotest corners of the nation are also equal stake holders in development and benefits equally from fruits of progress. He expressed confidence that ODOP would help bring prosperity to those at the bottom of the pyramid. Quoting the Prime Minister, Shri Narendra Modi, Shri Goyal said that 'each district of our country has a potential equal to that of one country…We need to understand this power and channelize this potential'. Referring to the success that ODOP has seen in several states like Uttar Pradesh, the Minister said that convergence or 'samanvay' is a critical factor that would propel the success of ODOP. Shri Goyal asked that flagship programs of the government such as Startup India, Make in India, district as export hubs etc. be converged with the vision of ODOP. He asked all the Ministries of GoI to help further expand the mandate of ODOP through complementary initiatives. The Minister asked Ministries, Departments and other government bodies to consider ODOP products exclusively for gifting purposes both within and outside India. He opined that the G20 summit which is set to take place in India soon is a great opportunity to showcase ODOP Products. He suggested that the delegates of G20 be given an exposure to ODOP products through well curated exhibitions of good quality ODOP products and tours of craft villages. Shri Goyal also called upon students of eminent institutions like NIFT, NID and IIFT to find creative methods to amplify ODOP. The Minister also dwelt upon the need to brand ODOP products, most of which are natural and eco-friendly as sustainable and good for the planet. In this context, Shri Goyal also called for expansion of the list of GI tagged products by simplifying, streamlining and fast tracking the GI tagging process. The Minister also called for the expansion of availability of genuine ODOP products to counter fakes in the market and said that strict action must be taken against those who sell counterfeit products. For arts and crafts that are in crisis because of the less number of artisans engaged in their production, Shri Goyal said that more and more artisans must be trained to take up these crafts so that they may be safeguarded. Shri Goyal proposed 5 action agendas to make ODOP a true game changer. He asked that the ODOP catalog be made exhaustive to serve as a one stop gifting destination for Ministries, Missions, State Governments and Industry. He added that the catalogue must serve as a high quality database of high quality suppliers. He asked states to get ODOP products catalogued in a manner that it improves access and selection and to undertake Search Engine Optimization. Speaking of the need to improve packaging, Shri Goyal said that each ODOP product has a unique story and characteristics which should be highlighted. Shri Goyal said that there was a need to hold training sessions to help weavers/artisans with GeM onboarding and cataloguing. He opined that Common Service Centres and Post Offices could be leveraged to provide this training. Calling for greater international engagement, the Minister said that ODOP must form a part of international exhibitions, events, meetings and conferences. He asked Indian Missions to ensure that ODOP products received international attention. The Minister asked that for festivals and celebrations, people of the nation must consider gifting atleast one ODOP product to friends and family. I believe this is an opportune time to plan and execute this project, in order to realize our collective vision of Aatmanirbhar Bharat in this Amrit Kaal, he said. The ODOP storefront on GeM went live with 75 categories covering products acrossStates and UTs. The purpose of the storefront is to enable direct procurement of ODOP products for gifting/ office use by various line ministries, government bodies, and foreign missions abroad. This will enable an international audience for India’s rich and diverse products. Secretary, Department for Promotion of Industry and Internal Trade (DPIIT), Mr. Anurag Jain, who was also present at the launch, highlighted the ways in which the ODOP initiative is working to transform the lives of artisans, women, craftsmen, and farmers. He also spoke about the various programs being undertaken including exhibitions, buyer-seller meets, and registration drives. Several Secretaries to the Government of India, senior State and UT government officials, several Industry Associations and other dignitaries were present at the ceremony.
Source: PIB
A Workshop on Development of Enterprises and Services Hub (DESH) Bill, 2022 was organized by Department of Commerce today in Vanijya Bhawan, New Delhi under the Chairmanship of Shri BVR Subrahmanyam, IAS, Commerce Secretary to have discussion on the DESH Bill with stakeholders from various segments. The workshop was organised in partnership with Export Promotion Council for EOUs and SEZs (EPCES) and was attended by approx 200 participants representing various segments including SEZ Units, Developers and Government functionaries of many State Governments as well as Central Government Departments as well as prominent industry associations. Various aspects of the Bill was discussed and views on the same from stakeholders were shared. After the inaugural keynote address by the Commerce Secretary wherein he noted that the draft DESH Bill was borne out of the learnings from the operations of SEZ law over more than a decade as well as from feedback from the stakeholders. This was followed by a presentation providing a brief overview on the draft DESH Bill. The presentation highlighted the salient features of the new law including the broad-basing of objectives, strengthened single window mechanism, a robust and dynamic regulatory structure, revamped fiscal framework as well as avenues for alternate dispute resolution measures. Thereafter, four interactive brainstorming sessions across groups of Industry, Developers, Academics / Professionals and Government stakeholders were organized wherein concerns and suggestions in respect of draft DESH Bill, 2022 flagged by stakeholders have been noted by the officials of Department of Commerce. The stakeholders expressed wide appreciation of the proposed framework of DESH Bill and acknowledged that the draft law addresses most of the long pending requirements of the stakeholders including integration with domestic market as well as measures to ease compliance and simplification of procedures. The stakeholders also made several suggestions to further improve on the draft law including the rules to be framed thereunder. Thereafter, the Additional Secretary, Department of Commerce provided a summary of the discussions during the interactive sessions which was followed by concluding remarks by the Commerce Secretary. The meeting ended with vote of thanks to all stakeholders.
Source: PIB
Lok Sabha Speaker Om Birla on Sunday night met with Suriname President Chandrikapersad Santokhi at his residence in the capital city Paramaribo and said that the two countries hold immense potential to enhance trade and economic relations. “There is immense potential to enhance trade & economic relations between two countries. Noted enhanced interest of Surinamese businessmen in bilateral cooperation in agriculture & agro-processing sectors. Indian Diaspora in Suriname has significantly contributed to its development,” Om Birla tweeted. “It was a warm & enriching meeting with President of Suriname HE Mr Chandrikapersad Santokhi. Both countries enjoy close-friendly relations, reinforced by cultural & people to people contact. Despite huge distance between two countries, hearts of the people are closely connected,” he tweeted. As a part of his visit to the South American country, on Monday, Lok Sabha Speaker paid homage to Mahatma Gandhi at his statue in Suriname’s capital city Paramaribo. Taking to Twitter, Birla said, “Honoured to pay my respect to Mahatma Gandhi at his statue in Paramaribo, capital of Suriname. This statue was brought from India and was installed here as a mark of respect to him. Mahatma Gandhi had appealed to end indentured labour practices in Suriname.” Upon reaching Suriname on Sunday, the Lok Sabha speaker met Paramaribo’s Speaker Marinus Bee and members of Parliament. “Feeling pleased by warm welcome accorded by Mr Marinus Bee, Speaker, National Assembly & MPs on arrival in Suriname today. Suriname & India share warm-long standing cultural links going back over a century. Looking forward to a fruitful exchange of ideas with Surinamese leaders,” Birla tweeted. He also visited the ‘Baba and Mai’ monument in Paramaribo and paid tribute to the statue of the first Indian man and woman who migrated from India to Suriname. “At ‘Baba and Mai’ monument in Paramaribo, paid tribute at the statue of the first Indian man and woman who migrated from India to Suriname. Today, Indians constitute the largest ethnic group in Suriname who are contributing to its development,” Birla wrote. Birla is leading a four-member parliamentary delegation that arrived in Suriname on Sunday to hold bilateral meetings with the leadership of the South American country in order to strengthen the mutual relationship. He arrived in Suriname after successfully completing his United States trip. During his visit, he is accompanied by the Lok Sabha MP Ravi Kishan, Veena Devi, and Rajya Sabha MP K Suresh Reddy. Expressing his gratitude, the Lok Sabha Speaker said that “it is a matter of pride for me to lead the Indian team.” Both, India and Suriname enjoy close, warm, and friendly relations, reinforced by cultural and people-to-people contacts bridged by the Indian Diaspora’s arrival dating back to 148 years. During the COVID situation, the Indian government provided life-saving drugs and protective gear worth USD 1,00,000 to Suriname as a token of solidarity on July 22, 2020. Even in March of 2021, India donated 50,000 doses of Made in India Covishield vaccine to Suriname, as a gesture of solidarity. Trade and economic links between India and Suriname remain modest. Indian export to Suriname consists of boilers, machinery, iron and steel, electrical machinery & equipment, sound recorders, pharmaceutical products, textiles, vehicles, coffee, tea and spices, rubber, paper, tobacco, organic chemicals, furniture, carpets, ceramic products, footwear and printed books. And Indian import consists of wood, aluminium, textiles, herbal products, garments, spices, and electrical machinery.
Source: The Print
Private labels in the apparel segment are closing the gap with those in the grocery space in the online world That private labels have helped online retailers attract new consumers, improve stickiness and increase market share is well-documented. While grocery continues to be the largest private label segment in the online world, private labels in apparel have not only shot up in sheer numbers but also in terms of the value they generate and their contribution to the revenues of online retailers. Consider this: Almost 50% of the top brands currently sold on Ajio are Reliance Retail’s private labels, which have, on many occasions, outsold national and international brands such as Levi’s, Superdry or US Polo Assn. on the platform. Reliance Retail’s top private brands Teamspirit, Mix N Match and Avaasa feature regularly among its topselling brands during festive season sales. Digital native Myntra houses a whole range of private labels across the price spectrum that contribute up to 35% to its revenue, according to analyst estimates. Many of its owned labels such as HRX and All About You are developed with and backed by celebrities such as Hrithik Roshan and Deepika Padukone, respectively. Offline too, the trends are similar. At Shoppers Stop, for instance, private labels accounted for 13% of the overall sales and within apparel it contributed 19%. “Private brand contribution in online sales was 20%. Newly launched brands — ethnic inspired men’s brand Bandeya, up 52% versus FY21 while the women Indian wear brand Kashish was up 56% versus FY21. Women’s western brand Insense saw a major growth of 83% versus FY21,” the company said as part of is March quarter and full-year earnings released in April 2022. In May, the department store chain said it had on-boarded actor Sanya Malhotra as ambassador for its select private brands. Evidently, private labels are a key focus area for retailers — online or offline. But it is in the online segment that the gap between grocery and apparel volumes is narrowing. Or, maybe it’s easier to account for on the digital platform, say some analysts. The point is this: On the one hand, private label sales have been on the upswing for years, but the soaring cost of living, driven by sharp fuel price rise, is turbo-charging the trend. And on the other, consumers seem unwilling to give up on the convenience of buying clothes online they had experienced during the pandemic-led shutdown. The segment sales are also a factor of comparatively low prices. Growth is also being driven by sales in smaller towns. From a share of 20-25%, Tier II and III have started accounting for up to 40-45% of the apparel and electronics sales in about three to four years. As retailers like to put it, the reason lies in the margins. So if online retailer margin in categories such as furniture and grocery are around 20% and 10% respectively, that for apparel and cosmetics is as high as 40% and 30% respectively, say players in the segment. Big online retailer players, across product categories, attribute more than 50% of their private label sales to repeat purchases, according to various studies. That will, in part, explain the slew of launches in the segment after the pandemic and the growing focus of offline apparel retailers on the online channel. Many such brands have outgrown their home platform and started selling through third-party channels. Says Sahil Shah, managing partner, WATConsult, “Many of the apparel brands we work with, or otherwise, had long back started a direct-to-consumer channel to ensure they build their own ecosystem and not rely on these marketplaces forever. And it’s working for sure,” he adds. Anand Ramanathan, partner, Deloitte India, notes that many of the private labels in the apparel segment are focusing on emerging categories such as loungewear, athleisure, kids wear, etc., in which penetration of branded products is low. Affordability is the key Now look at the story from the average consumer’s point of view. They are not necessarily aware if a brand is owned by a platform or a big fashion label. So to ensure consumers return to the platform and there is repeat purchase, the retailer has to keep the buzz alive. Umashan Naidoo, head, customer and beauty, Trent (which operates Westside), says that as a retailer, one must establish organic traction by building a community and love for the brand. For Trent’s chain of departmental stores, own brands in apparel, footwear and other accessories contribute over 99% of sales. Naidoo adds, “We now have the luxury of being present online. When a brand owns and takes charge of its products endto-end, it’s in control of its own destiny.” Points out Rutu Mody-Kamdar, founder of Jigsaw Brand Consultants, “Private labels can be sold by retailers at a lower overhead cost and with more flexible branding strategies as there’s considerable leeway in designing a promotion and advertising or even the packaging of the label.” Now is also the time to take the game a notch higher. Store brands must go from being used purely for their economic merit to helping market the overall online store image. All said, private labels will remain a tightrope walk for multi-brand retailers and it would be a constant struggle to find that sweet spot between showering the best resources on the store brand and cannibalising sales of a national brand. Look before you leap Online marketplaces must keep in mind a few things while selling their own brands There needs to be a proper balance between private labels and branded products since an excessive focus on private labels might lead to the loss of marquee brands and customers There are certain product categories with a low affinity for branded products. Private labels of marketplaces can focus on these categories and would have limited pushback from established brands There shouldn’t be a bias towards any brand while advertising so that the customer can choose the best product possible
Source: Financial Express
The emergence of a new world order seems palpable with geopolitical shifts in a bid to evaluate lucrative economic alternatives which shall define the coming decades for the global economy. The pandemic followed by the ongoing war have both been emotional and economic dampeners that have divided the world and contributed to inflationary pressures and rising commodity prices. Imbibing a spirit of resilience, entrepreneurship and agility hence assume a critical role especially in India when the country is currently the fifth largest contributor to world market cap following US, China, Japan and Hong Kong. In spite of the headwinds, India is well-poised for steady progress and is increasingly making rapid strides with numerous global names considering our nation as a worthy manufacturing contender as opposed to China. India’s recent entry in Indo-Pacific Economic Framework (IPEF) along with 12 member nations has been a pivotal move pegged to boost our bilateral trade relationships and propel the region as an engine for global economic growth. FY 21-22 closed on a high note for us with the group recording the highest EBITDA ever and highest Net Profit on a consolidated basis in the last 10 years. Our strategy to focus on the core and recalibrate the fundamental metrics of each business such as revenue, cost and working capital have reaped rich dividends for the Raymond Group. Sustaining our focus on cost optimisation and significant reduction in our operating costs by Rs. 453 Crores as compared to preCOVID levels of FY19 -20, was critical for our business. The profitability and working capital management have helped in generating free cash flows, thereby reducing our debts, drastically. During the course of the year, there were key affirmative actions taken for our business that have laid a strong foundation in shaping a stronger tomorrow for Raymond. Retailing in the post-pandemic world has thrown open new avenues for consumers to interact and shop. While physical retail will continue to thrive in India, the digital world and social commerce is rapidly surging in India. This is evident by the fact that our revenues from online marketplaces continue to grow steadily and we are currently deploying Artificial Intelligence and Machine Learning capabilities to also create digital fronts for our consumers. Our Brick & Mortar stores are doing well with consumers returning back to the stores to shop for the latest styles in office wear or make a big ticket purchase for weddings. Interestingly, we have had a record number of weddings in the last quarter of FY21-22 wherein we witnessed significant increase in our Average Transaction Values. Another new emerging opportunity is the ethnic wear space wherein we are making a rapid foray by opening up new stores for our brand Ethnix by Raymond. Our refreshing new take on ethnic wear crafted from the finest quality fabrics are gaining more popularity as we open new doors to take the brand to newer markets. The consolidation of B2C business by transfer of apparel business from Raymond Apparel Ltd to the parent company Raymond Ltd, which will bring all major apparel brands including Park Avenue, Colorplus, Parx and Ethnix by Raymond into Raymond Ltd. Primed for Growth I believe that the contours of the world are altering with power centre making a gradual shift towards Asia. The upheaval caused by the pandemic has been baffling for many nations. However, India continues to allure with a promising talent pool, strong domestic economy, resilient supply chains and the spirit of Atmanirbharta while spreading its wings to achieve the global dream of being an ideal manufacturing destination. At Raymond, we achieved the preferred supplier status for many more of our global clients and it’s a testimony to the India story that holds the beacon for a brighter future. As we approach our centenary year in 2025, the upcoming years will be defining a century-long journey of Raymond that will be a momentous milestone and a telling tale of how a homegrown brand reinforces its relevance in all Indian hearts.
Source: Indian Textile Magazine
After hitting all-time low, the rupee recovered some of its losses to settle 10 paise down at 79.94 (provisional) against the US dollar. After hitting all-time low, the rupee recovered some of its losses to settle 10 paise down at 79.94 (provisional) against the US dollar on Monday, tracking the strength of the American currency and firm crude oil prices. At the interbank foreign exchange market, the local currency opened at 80.10 and fell to its all-time low of 80.15 against the US dollar in intra-day trade. The local unit finally settled at 79.94 a dollar, down 10 paise over its previous close of 79.84. On July 20, the rupee for the first time closed below the 80-mark at 80.05 against the American currency. Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was trading 0.28 per cent higher at 109.10, after Federal Reserve Chair Jerome Powell adopted a hawkish tone to battle inflation. According to Anuj Choudhary - Research Analyst at Sharekhan by BNP Paribas, the rupee depreciated and touched an all-time low on a strong dollar and deteriorating global risk sentiments.
Global markets fell sharply by more than 2 per cent amid a hawkish speech by US Fed Chair Jerome Powell. "We expect the Rupee to trade on a negative note on the strong Dollar and weak global market sentiments. Concerns over global economic slowdown and inflation worries may also put pressure on Rupee," Choudhary said. Choudhary further noted that markets may also remain cautious ahead of India's GDP, manufacturing PMI and trade deficit data later this week. Traders may also remain alert ahead of US consumer confidence, ISM Manufacturing PMI and non-farm payrolls data this week, Choudhary said. "USD/INR spot price is expected to trade in a range of Rs 79.20 to Rs 80.80 in the next couple of sessions," Choudhary added. Brent crude futures, the global oil benchmark, rose by 0.64 per cent to USD 101.64 per barrel. On the domestic equity market front, the BSE Sensex ended 861.25 points or 1.46 per cent lower at 57,972.62, while the broader NSE Nifty declined 246.00 points or 1.4 per cent to 17,312.90. Foreign institutional investors were net sellers in the capital market on Friday as they offloaded shares worth Rs 51.12 crore, as per stock exchange data.
Source: Business Standard
Vietnam's export turnover of textiles and garments has reached US$40.4 billion in 2021, and is expected to increase to $45 billion by the end of 2022, said Mr. Truong Van Cam, Vice Chairman of the Vietnam Textile & Apparel Association (VITAS). He added that Vietnam’s textile and garment industry maintains a very fast growth rate, ranging from 20 percent-26 percent a year for the last five years. The Southeast Asian country is ranked third in the top countries with large textile and garment export turnover in the world. Currently, Vietnam's exported textile and garment products account for 5.2 percent of the global textile and garment market share. The United States, Korea, Japan, and Europe are major import markets of Vietnam's textile and garment products. To keep the growth momentum for textile enterprises, Mr. Truong Van Cam said that the government needs to quickly disburse the financial support package for businesses, renewing way of thinking in attracting investment to the raw textile materials industry. He advised businesspersons to eye transition to green production for sustainable value, reducing and recycling waste to catch up with the trend of green consumption and environmentally friendly products.
Source: SGGP News
UK’s international trade secretary Anne-Marie Trevelyan’s visit to New Zealand and Australia could offer an opportunity to discuss both countries’ continued support for the UK’s accession to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) by the end of 2022. The CPTPP is a £9 trillion trading block, which could see 99.9 per cent of UK exports becoming eligible for tariff-free trade with the 11 member countries. This would further boost opportunities for UK businesses in the region. Trevelyan is also on the visit to promote Global Britain and opportunities for UK businesses after the UK signed trade deals worth £800 million with New Zealand and £2.3 billion with Australia, respectively, according to a press release by the Foreign, Commonwealth, & Development Office and The Rt Hon Anne-Marie Trevelyan MP. “This is her first visit since the Free Trade Agreements (FTA) were signed and is a key part of our work to prepare businesses to make the most of the deals. In New Zealand, I’m particularly pleased we are able to meet with so many Maori businesses who will benefit from the FTA Chapter to promote the benefits of international trade. This visit will showcase amazing British companies showing how UK innovation, technology, and skills in the region are being used in partnership to deliver economic growth,” said Louise Cantillon, British consul general and deputy trade commissioner Asia Pacific (Australia and New Zealand). “I am delighted to host the International Trade Secretary during this important visit, focused on how to maximise the benefits of the FTA, the UK’s efforts to join the CPTPP, and future cooperation on global trade. There is huge potential for economic growth by working together, increasing prosperity for both countries,” said Iona Thomas, British high commissioner to New Zealand.
Source: Fibre2 Fashion
Bangladesh’s logistics sector requires infrastructure, skilled manpower, modern transport facilities and technology-enabled container depots to expand its foreign trade and compete in the international market, according to trade leaders and entrepreneurs, who recently lamented the lack of skilled human resources in the sector at an event. They were speaking in Chattogram at the pre-launch programme of a diploma course in logistics and supply chain management, a joint initiative of the Bangladesh Freight Forwarders Association (BAFFA) and USAID's Feed the Future Bangladesh Trade Activity. Chittagong Independent University and East Delta University will launch the course. At least two private universities in Dhaka will also offer the course from January next year, according to Bangla media reports.
Source: Fibre 2 Fashion
The European textile and fashion industry, represented by Euratex, has called on leaders to implement a single European strategy in order to tackle the emerging energy crisis. It comes as gas and electricity prices reach “unprecedented levels” in the region, resulting in “severe” global competition and cost increases for those in the industry. Euratex has requested for a revision of the electricity price and an EU wide cap on gas prices, as well as special support to avoid potential bankruptcies and relocations outside of Europe. The organisation added that it had observed a proliferation of contradictory, uncoordinated national initiatives to tackle the crisis, leading to fragmentation of the Single Market and a chaotic policy and regulatory environment, putting a further strain on the industry’s supply chain. “Given the current situation, a scenario where entire segments of the textiles industry will disappear can no longer be excluded,” said Alberto Paccanelli, Euratex president, in a release. Paccanelli continued: “This would lead to the loss of thousands of companies and tens of thousands of European jobs and would further aggravate the dependency of Europe to foreign sources of essential goods. This applies specifically to SMEs, who need temporary support measures to survive the current crisis and to prepare for the green transition in the longer run.” Euratex noted that specific segments of the textile industry are particularly vulnerable, including the man-made and cellulose-based fibres industry, an energy intensive sector and a major consumer of natural gas.
Source: Fashion United
Tajikistan increased imports of textile products from Uzbekistan from January through July 2022, Trend reports referring to the State Committee of Uzbekistan on Statistics. According to the committee, exports of textile products from Uzbekistan to Tajikistan in seven months of this year amounted to $21 million, which is almost 2.3 times more than in the same period of 2021 ($9.2 million). The largest share of Uzbek textile exports from January though July 2022 fell on Russia ($698.3 million) followed by Türkiye ($373.8 million) and Kyrgyzstan ($273.2 million). Meanwhile, the total value of Uzbekistan's exports to Tajikistan in the reporting period amounted to $257.2 million, which is an increase of 6.3 percent compared to the corresponding period of last year ($241.9 million).
Source: Fibre2fashion
A.P. Moller-Maersk (Maersk) has signed a Memorandum of Understanding (MoU) with the Malaysian Investment Development Authority (MIDA), to drive investments into Malaysia as one of the logistics hubs in ASEAN. It will help create better synergies and value-added services for customers and contribute to the growth and development of the supply chain sector in the Malaysian economy. Both parties will work together to attract high-tech and high impact investments in various sectors. The two sides will also build a mutually beneficial eco-system in focus markets to maximise FDI opportunities into Malaysia, both companies said in a joint media release. The MoU has been signed by Sivasuriyamoorthy Sundara Raja, deputy chief executive officer (DCEO), investment promotion and facilitation of MIDA and Rupesh Jain, managing director of Maersk - Thailand, Malaysia and Singapore at MIDA headquarters in Kuala Lumpur. “Logistics is a cornerstone of Malaysia’s economy. By connecting suppliers to manufacturers, and consumers to businesses, we support the growth of various industries. I applaud Maersk for their continuous efforts in taking the lead on initiatives to uplift the logistics industry. The MoU with Maersk will bring in more targeted global investments into Malaysia through strategic and value-added engagement approach to multinational companies. By leveraging Maersk’s capabilities in integrated logistics, we can transform Malaysia into a regional logistics hub in ASEAN, further boosting infrastructure development and free trade,” said Raja. “As our customers are reconfiguring their supply chains to make them more agile, resilient and sustainable, Maersk is constantly growing our logistics footprints globally to support this transformation for our customers. With the ambition to provide truly integrated logistics to our customers, this collaboration with MIDA allows us to leverage our strengths and combine with Malaysia’s geographical advantage to mount solutions in the region,” said Jain. “One of Maersk’s key focuses has been creating value to our customers in the geographies that we operate in. This MoU is a strong testament, and we expect that through our cooperation with MIDA, we can help position Malaysia as an attractive investment destination for potential investors. The country’s geostrategic position has made it a natural hub. By further enhancing Maersk’s logistics strength, we will contribute towards the growth and development of Malaysian supply chain sector,” said Goh Hean Chun, managing director, Maersk Malaysia. Maersk Malaysia commenced its operations in 1975. Today, Maersk employs more than 300 staff with representations in 12 locations throughout Malaysia and warehouse facilities in seven locations with a capacity of up to 68,000 square metres. More locations and capacity are expected to be added in the future.
Source: Fibre 2 Fashion
