Global textiles fibre market is witnessing a sweeping change in share and size. Cotton fibre market is shrinking while polyester fibre market will peak out despite largest share. Vegetation based cellulosic fibre is grabbing a larger market due to its softness and cotton-like feel. The global market is likely to grow to 110.636 million ton (110,636.89 KT) by 2025. According to an analysis based on data from Fibre2Fashion’s market insight tool TexPro, polyester fibre market was 44.672 million ton in 2015 which grew to 55.759 million ton in 2021. Its market share also increased from 52.38 per cent to 57.57 per cent in the same period. But the market share will reduce to 56.36 per cent (62.950 million ton) by 2025. The annual growth of polyester fibre will be 3.1 per cent against total textiles fibre market growth of 3.29 per cent during 2020-2025. The market share of cotton fibre is expected to reduce to 24.54 per cent in 2025 from 28.57 per cent in 2015. Cotton production has been disrupted in recent years due to rough weather conditions in various regions of the world. Cotton fibre market was 24.040 million ton in 2015 which reduced to 22.765 million ton in 2020 but bounced back to 26.023 million ton in 2021. It will increase to 27.040 million ton in 2025 with annual growth of 3.5 per cent during the preceding five years. Higher growth is attributed to fall in 2020 due to production loss. Vegetation based cellulosic (viscose) fibre market is still limited across the world. But cotton-like touch and feel has added to its acceptance in the market. Fashion world is also propelling the demand of viscose fibre. Its market size was 5.185 million ton in 2015 which grew to 6.609 million ton in 2021 and is expected to reach at 8.087 million ton in 2025. The growth rate of viscose fibre will be 5.58 per cent during 2020-2025. The growth will be highest among various types of textile fibres. The market share of viscose was 5.95 per cent out of the total market size of 84.078 million ton in 2015 and 6.66 per cent in 2021. It is expected to grow to 7.27 per cent in 2025. As per TexPro, The market share of polypropylene and others was 4.76 per cent (4.316 million ton) in 2015 which grew to 5.45 per cent (5.409 million ton) in 2021. The market share will be the same at 5.45 per cent but size will grow to 6.051 million ton till 2025. Total market share of these four varieties of fibre (cotton, polyester, viscose and polypropylene) was 91.66 per cent of the total textile fibre market. The share of these fibres grew to 95.94 per cent in 2021 but is expected to come down to 93.62 per cent in 2025. Other fibres like nylon, acrylic and wool have very negligible market share.
Source: Fibre 2 Fashion
Sitharaman said the principal focus would be equitable distribution of wealth so that India grows to become an advanced economy by 2047 Finance Minister Nirmala Sitharaman said on Monday that while the necessary stimulus for growth would continue, her ministry and the Reserve Bank of India (RBI) would work on a pathway to maintain the growth momentum for the next 25 years in order to make India an advanced economy. “The next 25 years will be very critical for India. We have to work towards maintaining the growth momentum. So together with the central bank, the ministry of finance will be working out a pathway which will be predictable and consistent and which will give every stimulus required for growth of the Indian economy,” Sitharaman said while speaking at an event organised by Elara Capital. Prime Minister Narendra Modi in his address to the nation on August 15 had called upon citizens to make India a developed nation when it celebrates 100 years of Independence in 2047. Sitharaman said the principal focus would be equitable distribution of wealth so that India grows to become an advanced economy by 2047. Indirectly criticising the freebie culture, Sitharaman said the poor would be empowered through handholding measures and not through entitlements. “The sense of entitlement being the guiding principle of governance has actually brought an element of condescension which people don’t need. They require you to have better sensitivity for building the capacities so that with dignity they can rise up and do what they would like to do for their families,” she added. The finance minister said the world order was definitely seeing a phase of significant changes. “It is obvious that China plus is going to determine now the world’s approach to business so that supply chain disruptions don’t happen. To enable and facilitate that, PLI (production-linked incentive scheme) is one of the major decisions of the government and we are finding industry responding positively to it. So the entire ecosystem of certain segments of industry are now willing to move into India, and the Union government is working together along with the state governments to make sure that they are brought in and the facilitation should be with the ‘plug and play’ model,” she added. On public sector bank privatisation announced in the Budget, Sitharaman said the government shall go ahead with banking sector reforms. “The Cabinet has given clearance, we have mentioned it in the Budget, and we will take it forward,” she added. Sitharaman said she was conscious of the glide path of fiscal consolidation committed by the government. “The necessary stimulus for growth will continue. We are conscious of what implications there will be when your debt to GDP goes out of control,” she added. On the windfall tax on the petroleum sector, the finance minister said the government was not interested in ad-hocism in tax policy. “But the government also understands after consulting with the industry that windfall gains were abnormal,” she added. In its latest review last week, the Centre increased windfall tax on domestic crude oil to Rs 13,300 per tonne from Rs 13,000 per tonne. It also revised the cess on export of aviation turbine fuel (ATF) to Rs 9 per litre from Rs 2 per litre, and increased additional excise duty on export of diesel to Rs 12 per litre from Rs 6 per litre. This was the fourth revision since the implementation of the tax from July 1. On whether the government is planning to increase the tax-GDP ratio which is only about 10 now, the finance minister said the widening tax base is an issue that needs a lot of consultations and analysis, though the increasing number of income tax filings gives her some clue on the possibility of widening the base. “But we want to ensure that as and when it is done it looks reasonable and tech-driven,” she said. On inclusion of Indian sovereign bonds in global indices, Sitharaman said many things have changed since the pandemic, especially in terms of inflows. Mostly, fund inflows have not been as expected, which of course is mostly due to the pandemic, she said.
Source: Business Standard
An ambitious target is set by both sides to raise bilateral trade in goods and services between the two countries to about $100 billion by 2030 Liz Truss, as the UK’s new prime minister — she will assume office on Tuesday — will likely stick to the plan of her predecessor Boris Johnson to clinch a free trade agreement (FTA) with New Delhi by Diwali in October, given that both sides have more or less concluded the negotiations already, and are equally keen to strike the deal at the earliest. Though India is still not among the UK’s major economic partners — it accounts for barely 2% of its trade in goods and services and just 0.6% of its inward FDI stock — the scope for expansion on both these fronts are tremendous and much bigger than with any other country. Also, the FTA is seen to bring significant economic benefits to both sides rather quickly. For Truss, who has inherited an economy with sluggish growth, addressing the intractable issues of low wages and high energy costs are paramount. She will have to rely on external trade in a big way in the medium term in battling the Brexit’s adverse effects on its economy, which is estimated at a considerable 2-2.5% of its GDP. An ambitious target is set by both sides to raise bilateral trade in goods and services between the two countries to about $100 billion by 2030. While this looks a tall target, the FTA will definitely lead to substantial incremental growth of trade between the two countries, besides enhanced, broader economic cooperation, which would, among other things, result in much higher two-way investment flows. The pact, which will likely be a full-fledged one (an earlier plan was to have an interim deal first), could cover more than 90% of tariff lines. Besides, it could lead to a spurt in India-UK services trade, which is currently 60% of overall annual commerce between the two countries. Johnson had agreed to a regime that will multiply visas to Indian skilled IT professionals to tide over a shortage in the UK; Truss will likely go by that plan. The FTA encompasses a wide range of areas including tariffs, sustainable growth, product and service standards, SMEs, government procurement, data flows and intellectual property. The sectors that are to benefit the most from the FTA are textiles, pharmaceuticals and healthcare, food & drink — including alcoholic drinks like Scotch. Plus, of course, ICT (information & communications technology) and digital services — the innovative, techrich future-focused industries that will drive expansion of UK-India trade. Following the Russia-Ukraine war and the western sanctions on Moscow, there has been a sudden surge in India’s exports of refined petroleum products to the UK. According to data released by the UK Office of National Statistics, of India’s merchandise exports to the UK in Q1 2022, petroleum products were the single largest item, with shipments worth £888 million. This shows bilateral trade could be expanded manifold even in the short term. India’s commerce & industry minister Piyush Goyal and his UK counterpart Anne-Marie Trevelyan have had many rounds of negotiations for the FTA. The discussions centred around opportunities to unlock the full potential of bilateral trade and opening up new areas for businesses from both the sides. Even though India-EU FTA talks are still hanging fire due to differences in areas including liquor, automobiles and intellectual property rights, the India-UK deal could be struck. On its part, the UK government has laid-out the ‘Indo-Pacific tilt’ in its foreign policy, and has made it clear that India is a key partner.
Source: Financial Express
He expects inflation to fall within tolerance band by January-March The Reserve Bank of India’s (RBI’s) interventions in the foreign exchange market are not just aimed at preventing excessive volatility in the rupee but also to anchor expectations around the depreciation of the domestic currency, Governor Shaktikanta Das said on Monday. The RBI’s stated stance, thus far, had been that it intervenes in the foreign exchange market to prevent excessive volatility in the exchange rate. “As I mentioned, we are there in the market almost on a day-to-day basis and our approach or our intervention in the market is broadly premised on two basic principles. One is to prevent excessive volatility of the Indian rupee -- that is the exchange rate,” Das said at an event organised by the Fixed Income Money Markets and Derivatives Association of India. “The second point is that it is also built around the theme of anchoring expectations around the depreciation of the rupee. So, it is to prevent excessive volatility and to anchor expectations around the depreciation of the Indian rupee.” The governor’s comments come close on the heels of the rupee marking a fresh intraday trading low of 80.13 per US dollar on August 29. But heavy market interventions in the form of dollar sales by the RBI helped the rupee recover by the end of that day’s trade. The rupee has breached the 80 per dollar-mark on three occasions. But interventions by the RBI ensured that the domestic currency recovered from that mark by the end day’s trade on all three occasions. Das noted that the rupee’s depreciation has been of a much lower order than many other currencies -- in both advanced economies and emerging markets -- with the local unit having depreciated 5 per cent, so far, in the current financial year. The US dollar has strengthened 11 per cent over the same period, he said. So far in 2022, the rupee has weakened 6.9 per cent versus the dollar. The RBI has heavily intervened in the foreign exchange market through sales of the dollar ever since the Ukraine war broke out in late February. From $631.53 billion as on February 25, the RBI’s headline foreign exchange reserves have fallen to $561.05 billion as on August 26, reflecting a great extent the central bank’s defence of the rupee. In August, the RBI said that reserves worth $573 billion were equivalent to 9.4 months of imports projected for the current financial year. Apart from the Ukraine war, the US Federal Reserve’s monetary tightening has been a source of volatility in the markets, Das said. “The recent commentary from the Fed at Jackson Hole on the future trajectory of the US monetary policy has infused substantial volatility into global financial markets, with large spill-overs and knock-on effects on emerging market economies,” a copy of Das’ speech uploaded on the RBI’s website read. The Federal Reserve, which has raised rates by 225 basis points, so far, this calendar year, is seen continuing to raise rates to tackle high inflation even at the cost of economic growth. Higher US interest rates typically lead to a stronger dollar and exert pressure on emerging market currencies. Das reiterated on Monday that India’s consumer price inflation shall moderate in the coming months, even though some of the monthly prints may be “bumpy”. “We expect it (inflation) to moderate in the second half of the current year, and then move within the tolerance band in the fourth quarter of this year and then move to even lower levels in the first quarter of the financial year 2023-24,” he said. The RBI’s target for CPI inflation is 4 per cent, with the flexibility of 2 per cent on either side. Headline retail inflation was at 6.71 per cent in July; it was the first time in four months that the price gauge printed below 7 per cent. According to forecasts provided by the RBI’s Monetary Policy Committee at its review in August, CPI inflation is seen at 6.4 per cent in October-December and 5.8 per cent in January-March, before falling to 5 per cent in the first quarter of the next financial year. The RBI has hiked the repo rate by a total of 140 basis points since May 4. The benchmark rate is currently at 5.40 per cent.
Source:Business Standard
Exclusive showroom to open on Oct 1 in the city. It will assist the entrepreneurs in branding and marketing of the garments Giving major thrust to the One District One Product (ODOP) programme of the UP government, chief minister Yogi Adityanath is planning to develop Gorakhpur as a readymade garment hub. The state government has also decided to open an ‘ODOP readymade garment showroom’ in the city on October 1. A state government spokesperson said, the showroom would assist the entrepreneurs in branding and marketing of the garments. “The readymade garments manufactured in various production units will be available under a single roof. The buyers will be able to select the samples of the product and place order for the bulk supply directly to the manufacturer,” he said. On the directions of the chief minister, the Gorakhpur Industrial Development Authority (GIDA) has planned to establish the state’s first readymade garment park and readymade garment factory complex here. Both the projects have been approved by the government and several production units are likely to open soon, he said. Also, a new initiative of branding and marketing of readymade garments has been launched by the state government. Under this initiative, an ODOP readymade garment showroom will open in Ghantaghar locality of Gorakhpur on October 1. A readymade garment entrepreneur, Ramashankar Shukla said, the readymade garment products of all the entrepreneurs would be displayed in the showroom. “The entrepreneurs have been told to list their products. Chief minister Yogi Adityanath is planning to promote the readymade garment sector, and Gorakhpur will pave way to make the district a big textile centre in the state. It will also bring the region of East UP on the path of development and generate employment,” he said. Gorakhpur, located in the weaver zone of the East UP, has the potential of skilled labour force, availability of raw material and future potential for readymade garment. The chief minister has included it in the ODOP programme of the district as the second product after terracotta. Efforts are being made to set up readymade garment production units in the district and several manufacturers have expressed interest in it. A readymade garment exhibition was also organised in March last year. Several entrepreneurs and buyers participated in the exhibition with enthusiasm.
Source: Hindustan Times
Rajasthan Spinning and Weaving Mills Limited (RSWM Ltd.) is the flagship company of LNJ Bhilwara Group, founded in 1961 by the visionary entrepreneur L N Jhunjhunwala. RSWM is one of the largest textile manufacturers in India, exporting to more than 78 countries worldwide. The company has 11 manufacturing plants with 478,000 spindles and 172 looms, located at Banswara, Rishabhdev, Kharigram, Ringas, Mandapam, and Kanyakheri regions of Rajasthan, producing high-quality cotton, mélange, sustainable, value-added, greige, and synthetic and novelty yarns along with denim fabrics and knitted fabrics. “Our Kharigram unit is one of India’s most sophisticated plants with 52,000 spindles. It produces the finest polyester-viscose greige yarn in the Indian market, sold under the brand name ULTIMA®. We have more than two decades of expertise in producing superior quality mélange yarns sold under the brand name Melantra® and cotton-dyed yarns in various sparkling colours and shades. Annually we produce 18,000 metric tons of mélange yarns on 75,000 spindles,” says Managing Director Riju Jhunjhunwala in an exclusive chat. “Established in 2007, our denim division produces 25 million metres of fabric yearly in both traditional and innovative constructions and blends. Besides this, our recycled polyester unit located near Jaipur produces staple fibre that transforms waste PET bottles into Fibre Green, which is the company’s certified recycled polyester yarn. We also manufacture fibre-dyed yarns and have spinning and draw fibre line capacity of 120 tons per day. Moreover, we also have solar roof top power plants that cater to our captive power consumption,” Jhunjhunwala adds. “We follow the standards set by the Global Organic Textile Standard (GOTS), the Better Cotton Initiative (BCI) and the FairTrade Foundation for producing sustainable products and constantly strive to reduce the carbon footprint. With its constant effort, the company has been able to secure the prestigious status of ‘Golden Trading House’ and has received export awards from the Synthetic and Rayon Textiles Export Promotion Council (SRTEPC),” Jhunjhunwala informs. Wide Product Range Giving an overview of the company’s products and solutions, Jhunjhunwala says: “With the help of technically advanced spinning facilities and dedicated research and development team, we produce a diverse range of products as per the ongoing global future fashion trends. The yarns, knitted and denim fabrics produced at our units are unmatched by the competitors. With decades of experience in the textile industry, our expertise lies in manufacturing sustainable and finest quality cotton, mélange, synthetic, novelty and greige yarns, along with international quality denim and knitted fabrics. The superior quality yarns produced at our unit using high-end technology also extend to home and commercial interior applications like weaving fabrics for curtains, carpets, bed covers, upholstery, and a multitude of items.” “Our Mordi unit weaves sustainable denim fabrics like PCW, recycled poly, natural indigo, hemp, recycled fibres; selvedge denims; dobbies and knit look; premium blends like tencel, modal, bamboo, linen, mélange, etc.; performance denim with value-added fibres for moisture management, low growth and high recovery; classic stretch denims for men, women and children; ecru and colour denims across all weights; and top weight denim with various blends and weaves. Our unit at Kharigram produces the finest quality polyester-viscose greige yarn in the Indian market, which is sold under the brand name ULTIMA®,” Jhunjhunwala informs. Manufacturing Capabilities Elaborating about the company’s manufacturing and infrastructure capacity, Jhunjhunwala states, “Our 11 manufacturing plants located at six units in Rajasthan have a total capacity of 478,000 spindles and 172 looms. With the help of cutting-edge technology, we produce high-quality and sustainable cotton, mélange, and synthetic yarns, along with denim fabrics in these plants. To deliver a wide range of yarns as per the clients’ needs and market trends, we have installed the best-in-class and innovative machinery sourced from world-renowned brands such as LMW, Truetzschler, Rieter, Savio, Luwa, etc. Our factory has a production capacity of 150,000 metric tons for yarns, 32 million metres of denim fabric and 44,000 metric tons of recycled fabric.” According to Jhunjhunwala, RSWM Limited is investing around Rs 410 crore in the expansion of denim, cotton melange yarn, knits business, modernisation and balancing equipments across all units. “The capex will be fully operational by FY23 and investment in denim, cotton yarns and knit is expected to increase our top-line by around Rs 700 crore. An additional capex of Rs 315 crore shall be invested in the expansion of our spinning capacity in Banswara, Rajasthan,” he adds. Speaking about the innovation and technology advantages offered by the company, he observes: “The textile industry consumes a huge amount of water and energy, along with other chemicals and harmful substances. These things have a major impact on the environment. To minimise the harmful effect on the surroundings and reduce carbon footprints, it is essential to switch to producing sustainable yarns and fabrics without compromising their quality. Keeping this in mind, we are making conscious efforts to introduce sustainability in fashion. For that we are using eco-friendly materials and consuming less energy and water at our manufacturing units. Moreover, we are focusing on reducing, reusing and recycling products.” Continuing further, he states: “To reduce plastic waste and conserve the environment we have set up a division that produces recycled polyester staple fibre from PET bottles. The unit can recycle 122 MT of plastic daily. These PET bottles are procured from authorised waste traders and this also helps to generate employment opportunities in the region.” Highlighting some of the key points of the company’s export performance in recent times, Jhunjhunwala says, “FY 2021-2022 has been quite profitable for us. We registered the highest ever sales in the last fiscal year due to unrestricted festive gatherings and wedding seasons after two years of lockdown due to the pandemic. Our export quantity increased by 87% in FY22, touching the mark of Rs 1,419 crore. In addition, our domestic turnover increased to 27% year-over-year compared to the last quarter. Our key customers are JC Penney, H and M, Zara, Levi’s, Wrangler, Diesel, Lee, Spykar, Hilfiger and many more.” Taking the Lead Listing down the key reasons that offer the company its competitive advantages, Jhunjhunwala remarks: “We at RSWM are committed to providing the best quality yarns, denim and knitted fabrics. To fulfil our clients’ requirements and stay a notch ahead of our competitors, we keep introducing new and advanced manufacturing technology. For example, we started commercial production of knitted fabric using highend German Corizon™ technology this year. We are the first textile company in Asia to produce fabrics like polyester, nylon, cotton and cotton blends using Corizon technology. Going forward, we are also planning to start the production of synthetic fabrics like linen, modal, Pima cotton, viscose, recycled polyester and Ecovero LIVA.” “In addition, we also recycle 30 tons of fabrics per month. We are proud to say that we use recycled yarns for producing denim fabric. Our cutting-edge Garnett machine efficiently breaks down worn-out garment materials and turns them into new usable fibres, allowing us to weave fresh fabric. Through our constant effort, we have been able to reduce 800,000 tonnes of CO2 emissions annually,” he adds. Elaborating on the total number of employees in the company, Jhunjhunwala informs: “We employ around 16,000 staff and workers in our textile units out of which 2,300 employees are women. We treat every employee of our company with dignity and respect. That’s the reason why employees stay here for 17-18 years. Some have even spent their entire lifetime with the organisation till their retirement age.” Sustainability Driven As mentioned earlier the company has always been a forerunner when it comes to adopting sustainability initiatives. “We support green energy and are committed to conserving energy and manufacturing yarns using eco-friendly methods. We are highly inclined towards using natural and eco-friendly resources for producing yarns. With our innovative methods, we have been able to reduce approximately 800,000 CO2 emissions annually. Apart from this we also transform waste PET bottles into FibreGreen® to reduce plastic waste and reduce land and water pollution,” Jhunjhunwala states. “The sustainability initiatives taken up by RSWM include rooftop solar power plants with a capacity of more than 25 MW, wind power plants with a capacity of 34 MW and 1,350 kilolitres of water conservation. Through various processes and ETP units, wastewater is re-treated for further use. We are currently a zero liquid discharge (ZLD) company. To eliminate excess landfill waste we recycle 30 tons of fabric per month with the help of our state-of-the-art Garnett machine. The high-tech machinery efficiently breaks down post-consumer waste fabrics and converts them into new usable fibres,” he adds. Growth through Automation Shedding light on how the company is adopting automation and Industry 4.0 in its manufacturing process, Jhunjhunwala mentions: “The need for hybrid and highly fragmented value chains has increased in the past decade giving rise to new digital industrial technology, known as Industry 4.0. It is an interpretation and application of Industry Revolution 4.0 in textile technology and textile manufacturing sectors across the supply chain in spinning, weaving and finishing. Due to the rising cost, high-end consumers and the complex value chain led to the spike in global competitiveness making it imminent to upgrade.” ”Increasing numbers of textile production facilities will transform into ‘smart factories’ in the coming years as automation and artificial intelligence make a covert entrance into the textile industry. The Indian textile industry will have no choice but to catch up to the rest of the world by transforming the production facilities into smart factories in light of rising labour costs, rising manufacturing and energy expenses, and process waste. Only by embracing Textile 4.0 will Indian textile manufacturing units be able to compete with major textile-producing nations like China, Bangladesh and Sri Lanka. Industry 4.0 is being quickly adopted by the Indian logistics sector, and as a result, the textile industry’s supply chain will profit from proper production planning and quick product transportation,” he adds. “To emerge as successful key suppliers, accepting Revolution 4.0 will become mandatory. The industry as a result will become a centre of progressive production technologies and a base for piloting and scaling up new digital solutions,” he further states. Finally, sharing the future growth plans and vision of the company up to the year 2025 and beyond, Jhunjhunwala states, “We are seeking RSWM to have excellent solvency ratios in the coming years. We shall prioritize this above all else. Next on the list is modernisation of all spinning facilities as and when required. The vision is to double the capacity from what it is today with some degree of forward integration. Also, we will lay a huge focus on being a carbon neutral company.”
Source: Indian Textile Magazine
SVP Global Textiles plans to reduce its debt substantially, in order to deleverage its balance sheet. SVP Global Textiles plans to reduce its debt substantially, in order to deleverage its balance sheet. This would be done while focussing on asset-light business model for the future expansion plans for the financial year of 2023. In a public statement, Maj. Gen. OP Gulia, SM, VSM (retd), CEO, SVP Global Textiles Ltd. said, “The company’s board has identified adequate steps as part of a major restructuring, for substantial debt reduction through efficient working capital management, to hive off non-core assets in FY23.” Additionally, the firm is in the process of setting up a 4,375 MT per annum greenfield facility in Jhalawar, Rajasthan. It also plans to manufacture protective uniforms, functional garments, mobiltech, antibacterial knitted fabric for sports, etc. The company’s expected revenue from technical textiles is of around Rs 175 crore per year. The expansion under a production-linked incentive scheme has been approved by the government. For the financial year of 2022, SVP Global Textiles clocked a net profit of Rs. 71 crore, and EBITDA of Rs. 303 crore.
Source: Business World
Arihant Spinning Mills (ASM) is a flagship spinning unit of Vardhman Group located in Malerkotla, Punjab. It was established in the year 1981 with an installed capacity of 25,000 spindles and at present has 94,512 ring spindles along with compaction and 400 vortex drums. The unit specializes in melange yarns, and is a state-of-the-art facility equipped with contemporary technology sourced from Japan, Germany, Switzerland and India. The company is led by Shri S P Oswal, Chairman and Managing Director of Vardhman Group. He is one of the most respected names in the Indian textile industry. Accompanying him is Mrs. Suchita Oswal Jain, Vice Chairman and Joint Managing Director; and Mr. Neeraj Jain, Joint Managing Director. Mr. Sumit Aggarwal is looking into the operations of Arihant Spinning Mills as the Business & Unit Head. In this article Mr. Sumit has shared detailed insights into a variety of topics, including ASM’s products and solutions, manufacturing infrastructure, USPs, sustainability focus, automation initiatives and future plans, among others. The company offers mélange yarns as ‘Rangoli’, a term that signifies ‘profusion of colours’. We began the interaction with a query on the products and solutions offered by the company. Here are the edited excerpts. Products and Solutions offered The company offers a wide portfolio of products to suit all kinds of apparel. Mr Sumit shares the details: We develop our products keeping in mind our customer requirements and offer them in 100% cotton, recycled cotton and in blends. Rangoli melange yarn is offered in over 1,500 colours from our shade card. That apart, any colour can be produced against a customer’s requirement. Our in-house brand labels for specific properties in melange yarns can be summed up as follows: • ‘Fashionova’ comprises innovative fancy range of melange yarns aligned with the current trend. It is a gentle play of colour with smooth fancy texture in yarn. The innovative mélange collection is derived in combination from technology, process and raw material. It comprises jaspe, slub, neppy, siro, spectra, injection, grindle, flaky, snow and CSY melange. • Sanspill’ is a new-age melange yarn that emphasizes on enriching lives by providing comfort and fit for any fabric, be it work wear or active wear. It is an everyday luxury with innovative features such as low pilling and clean appearance, manufactured using air jet technology. • ‘Infeel’ is a melange yarn with a soft touch to your skin, crafted especially for delicate inner-wear. It is extremely soft and breathable and uses fibres like viscose, modal, micro modal, tencel, micro tencel, silk, seacell, feel fresh, bamboo, hemp, etc. • ‘Performa’ is an active wear melange yarn. It takes your fabrics to the next level in the field of athleisure, active wear, outdoor wear, sports inner wear, etc. It has several innovative features such as moisture management; stays cool and fresh all day long with add-ons like Coolmax, Cocona, Kooltex, etc. • ‘ProGreen’ is a range of sustainable melange yarns with the unique quality that it can re-enter the ecosystem at the end of its lifecycle, thus saving the precious resources of our planet. The sustainable melange yarn is available in 100% cotton and blends through our in-house fabric cutting shredding plant. The recycled fibre is used to offer recycled yarn either 100% cotton or in blends. World-Class Manufacturing Facilities The company has always been known for its robust manufacturing infrastructure. Arihant Spinning Mills have state-of-the-art machinery sourced from manufacturers like Rieter, Trutzschler LMW, Murata etc. The machines have digital systems for monitoring metrics like ring, card, POC, lab data, etc. All the melange yarns are processed through a tuft blender for accurate blending ratio and also processed through latest eye clearer, the Uster Quantum 3. The company has a very strong research and development facility which has advanced technologies approved by Uster and an inhouse knitting facility in which not only all yarn quality parameters are tested, also knitting trials are taken before sending to the customer so that they receive trouble-free yarn. The unit is certified with GOTS, GRS, OCS, Fair Trade and Oeko Tex. Innovations and Investments Talking about the emphasis of organization on innovation and development, Sumit states – “Technology up-gradation is a continuous process at Vardhman, including Arihant Spinning Mills and our plant is having all kinds of latest machinery. We recently installed Air Jet Spinning Vortex machines from Murata. In near future, we intend to expand our production capacity in ring spinning and air jet (Vortex) machines to meet our valuable customers’ needs in specialized and recycled melange yarn”. Arihant also has an in-house product development center and design team. Based on the research on trend forecasts, theme ideation, colour and texture analysis, seasonal shade cards are developed by them. The team also works in coordination with designers from leading brands to collectively develop their seasonal collections. Pointing out the competitive edge that the company has in its favour which makes it the ideal sourcing partner for its customers, Sumit says, “ASM is a manufacturing setup of the Vardhman Group, a trusted name in the industry. The unit has been delivering excellence for close to 40 years. While working with us, the customer gets peace of mind in the form of ‘trouble free yarn’, consistency in quality and shade matching, in time delivery and strong after-sales service. Employee Engagement Drive Going into details regarding the total number of employees at ASM, we were informed that the company gives employment to about 2,000+ people, out of which about 55% are women who come from rural areas. More than half of the total workforce resides within the factory premises. “We have in-house bachelor male and female hostel and also family accommodation that provides comfortable and hygienic living conditions besides other facilities”, tells Sumit. The organization is committed towards workers’ safety and ensures all the necessary safety measures are adopted with utmost sincerity,” he adds. Vardhman Group is already conducting an employee engagement drive with the motto ‘Respect for All’ to provide an environment which is comfortable and contains opportunities to grow. Such initiatives help build ownership and a pleasant workplace environment. Sustainability Vardhmam Group has always been considered a front runner when it comes to sustainability initiatives and is no different in the case of Arihant spinning Mills. In the words of Ms Suchita Oswal Jain – “At Vardhman, it has been our consistent endeavour for over five decades to enhance the positive impact of our textile operations as much as possible. We are of the firm belief that as an organization we must proactively protect and rejuvenate the environment. We are also certain that all our actions must dovetail into making us a responsible organization that empowers all sections of society including farmers and employees”. Automation and Growth Initiatives Giving an overview of the company’s automation initiatives in its manufacturing process, Mr Aggarwal says – “We are upgrading our machinery with new technology and have introduced automation in spheres like ring data, air monitoring, machine data, online lab monitoring and CAYC to provide ease of work and are also offering digital shade library and virtual plant tour to our customers.” The company has ambitious growth plans lined up for the future. Sharing the vision of the company for 2025 and beyond, Sumit states, “By 2025 we are aiming to have 1.50 lakh melange spindles, offering ring and air jet melange yarn in 100% cotton, blends and recycled melange to our valuable customers in order to become “A preferred choice of all leading international and national brands for melange yarns”.
Source: Indian Textile Magazine
The office of the US trade representative (USTR) recently confirmed that representatives of domestic industries benefiting from the tariff actions in the Section 301 investigation of China’s acts, policies and practices related to technology transfer, intellectual property and innovation have requested the administration to continue the tariffs. “Accordingly, as required by statute, the tariffs did not expire on their four-year anniversary dates and USTR will proceed with the next steps as provided in the statute,” USTR said in a press release. Details on the next steps in the four-year review process will be set out in subsequent notices. In May this year, USTR commenced the statutory four-year process by notifying representatives of domestic industries that benefit from the tariff actions of the possible termination of those actions and of the opportunity for the representatives to request continuation. As requests for continuation were received, the tariff actions have not terminated and USTR will conduct a review of the tariff actions. “The July 6, 2018 action, as modified, did not terminate on July 6, 2022, and will remain in effect, subject to possible further modifications,” the USTR notice said.
Source: Fibre 2 Fashion
The United Arab Emirates (UAE) is hopeful of finalising a comprehensive economic partnership agreement (CEPA) with Turkiye in the near future, according to the former’s foreign trade minister Thani Ahmed Al Zeyoudi. The negotiations were launched around four months ago and the agreement aims at removing trade barriers and cutting tariffs. “We are aiming to finalize the #UAETurkiyeCEPA in the coming weeks, and build deeper, more meaningful trade and investment ties with one of the region’s most important economies,” Al Zeyoudi wrote on Twitter, retweeting a post by his Turkish counterpart Mehmet Mus. “We discussed the current state of the ongoing negotiations of Türkiye-UAE #CEPA and the steps to be taken to finalize the agreement,” Mus said on Twitter. The deal will enable both the countries to achieve a bilateral trade volume of nearly $15 billion, Mus said in late April when the two countries officially launched talks on the CEPA. The CEPA is expected to double trade between the two nations, Al Zeyoudi was quoted as saying by Turkish media reports. The UAE is pursuing several bilateral CEPAs and has signed trade deals with India, Israel and Indonesia this year. The UAE is the largest trading partner of Turkiye in the Middle East with a bilateral trade volume of around $8 billion. The turnover had dropped to around $6.9 billion in 2018, before rebounding to nearly $7.9 billion in 2019, according to the official data. The volume rose further to $8.3 billion in 2020 despite the pandemic, before slipping slightly to $7.6 billion last year. The trade in the first seven months of this year was worth nearly $5.2 billion.
Source: Fibre 2 Fashion
The Ministry of Finance and the Federal Board of Revenue (FBR) have agreed to clear Rs36 billion deferred sales tax refunds of the textile sector in 32,000 cases pending since 2019. The decision to this effect was taken during a meeting of Finance Minister Miftah Ismail with a delegation of the All Pakistan Textile Exporters Association (PTEA) on Monday. The issue of deferred sales tax refund payment was discussed during the meeting of textile exporters with the FBR and the finance minister besides issues in the opening of letter of credit, said an official of the Finance Ministry. The FBR will address the issue of objections raised by the “FASTER” refund payment system to clear pending sales tax refunds. In this regard, the FBR will devise a mechanism for speedy clearance of pending sales tax refunds of Rs36 billion without further delay. The government will discuss the issue of import of cotton from India with the stakeholders before taking any final decision. Finance Minister Ismail has directed to resolve the refund issue of textile exporters and directed the State Bank of Pakistan (SBP) to solve their problem with regard to the opening of letter of credit. A delegation of PTEA led by its Patron-in-Chief Khurram Mukhtar met the finance minister. Minister of State for Finance and Revenue Dr Aisha Ghous Pasha, Minister of State for Petroleum Musadik Masood Malik, Muhammad Asim Nazir MNA, Governor SBP, Chairman FBR, Coordinator to Prime Minister on Economy Bilal Azhar Kiyani, Chairman PTEA Sohail Pasha, Secretary General PTEA Azizullah Goheer, and other senior officers from the Finance Division also attended the meeting. The meeting apprised the finance minister about the contribution of the textile sector export to the overall sustainable economic growth of the country. They also discussed about the various issues being faced by exporters especially related to exports and tax refunds. The finance minister also assured the delegation that the government wants to enhance the overall exports of the country and every possible support will be provided in this regard. The finance minister directed the relevant authorities to take the desired steps for resolving these issues.
Source: Business World
Numbers are rising at events but concerns remain over lack of crucial Chinese participants. With most of the world’s biggest economies having curbed pandemic restrictions, the mantra for the global events industry is “business is back”, following a difficult two years. But attendance at the Imex show in Frankfurt — which caters to the trade show and travel sectors themselves, with attendees including conference venues, event managers and hotel groups — is telling. The May event had about 9,500 participants, compared with 14,000 before the pandemic. “Obviously the industry has suffered during the past years, people have lost jobs, but demand has exploded,” said Carina Bauer, chief executive of Imex, adding that recent events had a “global range of exhibitors”. But she added: “We had very few participants from China this year.” The 32 per cent drop in attendance points to a mixed picture for the industry as the world reopens. The critical Chinese market remains stymied by restrictive lockdowns as Beijing pursues a zeroCovid policy. Meanwhile, convention centres and organisers elsewhere are still gauging whether demand for face-to-face meetings will return to pre-pandemic levels despite an initial surge. China offered the events industry a sliver of hope two years ago when it became the first large country to cautiously reopen after the first phase of the pandemic. Now the tables have turned. While many wealthy countries have signalled that companies should not expect future restrictions on social mingling, China has chosen to impose travel restrictions, as well as lockdowns on cities when local coronavirus outbreaks occur. “We have no idea how to compensate for China if the country does not return,” said Wolfgang Marzin, chief executive of Messe Frankfurt, a German events organiser coowned by the city of Frankfurt and the state of Hesse that runs trade fairs around the world. “Everybody took advantage of labour and production capacity in China — much still comes from there — and now we are as dependent on them as we are from oil for Mr Putin,” he added, nodding to the number of international companies manufacturing in the country. For now, Marzin said Chinese buyers and sellers were largely absent from events in other parts of the world. “The zero-Covid policy means that since January we don’t see Chinese companies,” he said. “For a show in textile, typically we would have around 400 exhibitors and now we have 25.” Marzin would not disclose the private company’s revenues and profits but said turnover this year was likely to be close to levels in 2010, adding that he expected the company to be back on track in 2025 — assuming the global economy is not derailed by further crises. China is not only an indispensable part of many companies’ supply chains, but the world’s second-largest economy has also emerged as an important buyer at trade shows. In 2019, mainland China accounted for 16 per cent of events revenues at Informa, the world’s largest trade fair group. In 2021, the company had recovered to only four-fifths of this level. But the FTSE 100 company is more sanguine about the situation in China, arguing that rebounding demand in the US has offset the lag. Both Marzin and Bauer are bullish about the eventual full-scale return of in-person meetings, so is Lord Stephen Carter, Informa’s chief executive. “The power of physical presence will not go away,” said Carter. “Even if China is opening at a slower rate than other countries, we know that it will be reopening.” The group has put its money where its mouth is, announcing last December that it would dispose of its intelligence arm and focus on events and academic publishing. It had unveiled an annual £1.1bn pre-tax loss for 2020 linked to lockdown-related exhibition cancellations. But in 2021 it swung back to a £137mn pretax profit as restrictions eased. Informa said in July that it would begin paying dividends again following a pandemic hiatus, brushing off a global economic slowdown that is threatening many industries. The group expects its revenue and adjusted operating profit this year to reach the upper end of previous guidance of £2.15bn-£2.25bn and £470mn-£490mn respectively. “All the events businesses I speak to are tremendously bullish,” said Citi analyst Thomas Singlehurst, who added that as exhibitions businesses tend to have a low cost base they could stand to be beneficiaries of surging inflation as they raised their own prices. “What’s interesting with events is that re-emergence of inflation could be the best thing that has happened,” he said, explaining that most growth in the industry came from pricing. Carter said Informa had maintained 2019 prices for its exhibitions in order to encourage as many customers as possible, but added that in the future “of course, there will be natural price inflation as you would expect”. Nevertheless, the industry remains under pressure. Of the three biggest listed events providers — Informa, Hyve and Relx — only the latter’s share price has recovered to the level of early 2020 and it is largely focused on subscription businesses such as academic publishing. But Hyve, which runs the annual retail shows Shoptalk and Groceryshop, has still struck an optimistic note, saying the 2022 editions either had or were expected to make more money than the year before Covid-19 struck. “Post-pandemic . . . our customers spend more with us than before,” said chief executive Mark Shashoua. The UK-based group reported revenue of £59mn in the first half of 2022, compared with £68mn for the same period in 2019. It blamed the delay of two large events in the mining and paper industries in the second half of the year for the decrease. There are predictions of a shakeout. Shashoua said some smaller or more niche shows were unlikely to return at all, even online, after the pandemic, with the largest groups such as Hyve who run the “must-attends” of various industries in a position to consolidate. This has already begun. In March, Hyve announced the acquisition of US-based Fintech Meetup for up to £42mn, a few months after it snapped up an events organiser focused on the mining industry for a similar amount. Meanwhile, Informa bought businessfocused publisher Industry Dive in July, a deal that will grant it a content arm to better engage clients beyond events. For Informa’s Carter, future growth in the industry will come from an increase in the range of services that events companies can provide, with the main shows becoming “much more digitally enhanced [with more] sophistication at registering and profiling [buyers and sellers]”. “If you are operating with a tier-one product, demand is extremely high,” he said.
Source: Financial Times
Pakistan Textile Exporters Association (PTEA) on Monday demanded the government lift ban on cotton import from India. They made this demand in a meeting of their representatives with Federal Finance Minister Miftah Ismail in Islamabad, says a message received here. Finance Minister assured the delegations that government wants to enhance the overall exports of the country and every possible support will be provided in this regard. The Finance Minister directed the relevant authorities to take the desired steps for resolving these issues. The meeting apprised the Finance Minister about the contribution of export textile sector in overall sustainable economic growth of the country. They also discussed about the various issues being faced by exporters especially related to exports and tax refunds. Miftah Ismail chaired the meeting with PTEA delegation led by its Patron in Chief Khurram Mukhtar at Finance Division on Monday. Minister of State for Finance and Revenue Dr. Aisha Ghous Pasha, Minister of State for Petroleum Mr. Musadik Masood Malik, Mr. Muhammad Asim Nazir MNA, Governor SBP, Chairman FBR, Coordinator to PM on economy Mr. Bilal Azhar Kiyani, Chairman PTEA Mr. Sohail Pasha, Secretary General PTEA Mr. Azizullah Goheer and other senior officers from Finance division attended the meeting.
Source: Business World
