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The country's goods and services exports are marching ahead to cross USD 750 billion in the current financial year and talks for expanding rupee trade with certain countries are at an advanced stage, Commerce and Industry Minister Piyush Goyal said on Monday. Goyal said that last year the exports reached an all time high of USD 676 billion. We are inching close and marching ahead to cross USD 750 billion of goods and services exports in 2022-23We are expanding rupee trade with several countries, many of which are at an advanced stage of dialogue and finalisation., he said here at the CII partnership summit. Earlier, exports used to hover at around USD 500 billion every year, he added. India's merchandise exports during April-January this fiscal have increased to USD 369.25 billion as against USD 340.28 billion in the same period last year. Services exports during the 10-months period are estimated at USD 272 billion. Further the minister made 10 recommendations to promote global trade. The suggestions include addressing tariff and non tariff barriers; a string and responsive international institutional framework; and collaboration in trade and technology. When we talk of building resilient and global value chains, we must collectively address the challenges of tariff and non-tariff barriers. There are so many non-tariff barriers and as countries create them, others are tempted to follow suit. It is imperative that nations must address these in a mission mode, Goyal said. He said that for financing global recovery, a strong and responsive international institutional framework is needed for within which we must reform several multilateral organisations and trading arrangements that have, over the years, led some non-transparent economies whose economic systems are totally opaque- to enjoy the fruits of multilateral engagements. I think it is time the world called out such countries and made them accountable and transparent, he said adding on emerging technologies, countries should undertake world skill mapping. On one hand, find certain nations with tremendous skills, we can match that skill deficit yet rich countries which need those skills and that matchmaking is what partnerships are all about, Singapore and India are making serious efforts to do that. UAE and India have been doing that. I invite other countries so that workforce scarce countries can enjoy the fruits. With Australia, we are working on such mobility and migration partnerships, Goyal said. The minister also said that there is a need to promote flexible ESG frameworks, which are tailor made. India, he said, is aspiring to be the third largest economy in the world in the next 4-5 years. We are entering into international agreements with several countries to enable our businesses as we will enable businesses around the world to engage deeply with each other so that we can become a larger player on the global economic front, Goyal said. He also informed that Sultan Ahmed bin Sulayem, Group chairman and chief executive officer (CEO) of DP World, is setting up large facilities in Jammu and Kashmir. Speaking at the event, Canada's Trade minister Mary Ng said that investing in Canada gives Indian companies the ability to grow their competitiveness and gain access to 60 per cent of the world's economy through the supply chain thanks to our network of free trade agreements. We are working on a trade agreement that is meaningful and that would make trade seamless and help develop supply chain links between our countries, create partnerships in that digital economy whether it is clean tech, agri tech, health tech, and creating solutions for the future be it climate change, food security. Our goal is to reach a deal that will support Indian and Canadian companies, manufacturers, service providers, farmers, workers, MSMEs, and ensure a deal that will benefit everyone, she said. UAE Minister of Economy Abdulla Bin Touq Al Marri said bilateral trade with India is growing and USD 100 billion target is also now looking modest.
Source: Business-Standard
India and US have just signed an MoU on jointly developing an ecosystem for semiconductor technology. This follows India’s Rs 76,000-crore incentive scheme for semiconductors and the display manufacturing ecosystem. Will the MoU directly help in furthering the aim of this incentive scheme? Rishi Raj explains
The India-US MoU
The memorandum of understanding (MoU) basically paves the way for creating a semiconductor sub-committee under the commercial dialogue between the US department of commerce and the ministry of electronics and information technology (MeitY) and the ministry of commerce. According to commerce and industry minister Piyush Goyal, one aim of the MoU is to establish a semiconductor supply chain. It will also aim at diversifying and friend-shoring (sourcing of material from countries with similar social and political values) the supply chain, facilitating clean technology cooperation, inclusive digital growth, talent development, and post-pandemic economic recovery.
The MoU and India’s semiconductor scheme
India’sRs 76,000-crore incentive scheme provides 50% fiscal support for development of semiconductors and display manufacturing ecosystem across all technology nodes for setting up of semiconductor fabs.
If one looks in terms of tangible outcomes of the MoU on the scheme, there won’t be any because semiconductor design as well as fabrication is led by private industry and governments can only help in creating an enabling atmosphere. However, it would certainly help in sending the right signals to the chip manufacturing industry, that India has the right enabling framework in place. India has talent, expertise and gets orders in chip design, but these then flow outside the country for fabrication. Thus, India misses out on manufacturing.
Progress on the incentive scheme
Semiconductors are key to a wide range of manufacturing—from mobile phones to automobiles. The geopolitical tensions after the Covid-19 pandemic made it clear that their manufacturing must be spread across centres rather than being concentrated in some areas.
After the incentive was announced, Vedanta, in a JV with Taiwan’s Foxconn, has planned an investment ofRs 1.54 trillion for an India-based unit. The company would be setting up the project in Gujarat and expects to break even in five years. A consortium comprising Dubai-based NextOrbit and Israeli tech firm Tower Semiconductor has also signed a deal with the Karnataka government for a plant in Mysuru. Singapore-based IGSS Venture has evinced interest in such a project in Tamil Nadu. Minister of state for electronics and IT Rajeev Chandrasekhar told FE last month that the Centre will shortly approve the two proposals.
What are the challenges ahead?
While the incentive scheme is fine and the MoU with US creates the right kind of environment, it’s too early to conclude that India will soon emerge as a destination for chip manufacturing.
The big challenge would be to ensure that the foundries—the epicentre for chip fabrication—which get set up are global in nature and are able to get global orders. Ultimately, it is the relocation of global units into the country that would determine the success. Any unit which is not assured of large-scale orders runs the risk of low capacity utilisation. The minimum investment which goes into a foundry which is global in nature is around $2-3 billion.
Will the Indo-US MoU help here? Not directly, but it will signal suppliers to shift base to India. For instance, last year in October, Cristiano R Amon, president and CEO, Qualcomm, had said if the company’s suppliers set up bases in India, it would use their fabs. Amon had also said the US, Europe, and India should work together on developing a geographically diversified and resilient semiconductor supply chain and see that there’s no duplication in creating a viable ecosystem.
* Rs 76,000 cr incentives for semiconductors & display production
* $2-3 bn minimum investment in a global foundry for chip production
* Rs 1.54 tn Vedanta-Foxconn joint venture for unit in Gujarat
* 2 projects in Karnataka & TN awaiting approval
Source: Financial Express
After scaling an all-time high in FY22 and a sudden post-pandemic turnaround, foreign direct investment (FDI) inflows into the country have slowed in the current fiscal year, in sync with the global sluggishness in long-term cross-border investments. Analysts feel FDI volumes may remain rather subdued in the next fiscal also, given the global growth slump, but India could still be among the better performers on a relative basis. Gross FDI inflows – equity, reinvested earnings and other capital – declined 8.4% on year to $55.3 billion in April-December this fiscal. The decline was ever sharper in the case of FDI inflows as equity – these fell 15% to $36.75 billion during the first three quarters of 2022-23, according to official data. While services sector registered a 24.5% increase in FDI equity inflows in the period, other sectors such as computer software and hardware, automobiles and construction too witnessed substantial declines (see chart). Experts point out that global uncertainty over growth and inflation as well as tightening of liquidity conditions has made investors more cautious. However, India’s focus on production of new goods such as semi conductors and mobiles as well as the PLI schemes could lead to some revival in these investments, they feel. “FDI inflows in 2022-23 have been affected by the recessionary trends in the major source countries of FDI combined with high inflation rates forcing the central banks to adopt tight money policies leading to rising interest rates. As a result, the full potential of FDI inflows is currently held back by a rather uncertain global economic environment with the threat of recession looming large on the US economy, one of the largest sources of FDI for India, directly or indirectly through Mauritius,” said Nagesh Kumar, Director, Institute for Studies in Industrial Development. The EU countries have been affected very badly by the Ukraine war and the East Asian countries are still grappling with the pandemic, he further noted. FDI inflows across the world have declined in 2022, after an initial spurt in the first quarter, according to UNCTAD. India, according to UNCTAD, ‘was the rare exception to the overall gloomy trend, with a doubling of new greenfield project announcements and a 34% increase in international project finance deals.’ Kumar said these will get reflected in the magnitudes of FDI inflows with a lag. NR Bhanumurthy, vice-chancellor, BR Ambedkar School of Economics University agreed and pointed out that the tightening of global liquidity conditions and uncertainty over growth and inflation have impacted FDI flows globally, which has seen a decline. “However, India seems to be doing better than other emerging markets. India is also being mentioned as a bright spot in the global economy,” he said, adding that this trend is likely to continue even going forward as we are in the middle of an interest rate tightening cycle globally. India will continue to attract more FDI equity inflows compared to peers but the absolute volume will remain to be low. Nischal S Arora, Partner – Regulatory, Nangia Andersen India noted that one notable exception has been the services sector which includes BFSI, wherein there has been an uptick. However, a noticeable decline is now visible in the computers, hardware and software sector where the overall decline in FDI over a period of four years now stands at a decline of 26% CAGR. According to him, the auto sector is going through a cooling off period from an investment perspective as the industry prepares to ramp up investment to meet PLI targets and meet EV demand. Similarly, construction development has been directly impacted by US rate hikes as a dearer dollar has made fund availability and consequent allocation in developing markets difficult, he noted. However, there is expectation that FDI equity inflows will improve in 2023-24 as the PLI schemes take off. “The recent developments such as PLI, strategy of global corporations to diversify their value chains on a China+1 basis, and friend-shoring, and India’s emergence as the fastest-growing large economy globally should help to enhance India’s attractiveness for FDI further in the coming years,” Kumar said. Experts are also optimistic after recent big-ticket announcements such as the investment plan unveiled by Foxconn Technology Group to manufacture semiconductor chips and displays in partnership with Vedanta. The government too has been hopeful that the PLI scheme as well as other announcements made in the Union Budget will help attract more foreign investments into the country.India recorded highest ever annual FDI inflow of $83.57 billion in 2021-22. India’s FDI inflows increased 20-fold since 2003-04, when the inflows were $4.3 billion.
Source: Financial Express
India is considering to discuss a mechanism with Australia for a smooth supply of their critical minerals under the comprehensive free trade agreement amid a huge demand in the domestic market, according to sources. India and Australia have implemented an economic cooperation trade agreement (ECTA) in December 2022, and now negotiations are on for expanding the scope of that agreement into a comprehensive pact (Comprehensive Economic Cooperation Agreement or CECA). There is a huge demand for critical minerals like lithium, titanium, vanadium, cobalt, nickel, and graphite in India as the country is targeting to boost the production of renewable energy by 2030. Batteries will enable the current energy transition towards electric mobility, integration of renewable energy through grid-scale storage and improved energy access in India. existing manufacturers are largely reliant on imports. There is an MoU (memorandum of understanding) signed between Khanij Bidesh India Ltd (KABIL) -- a joint venture of three central public sector units under the Ministry of Mines -- and the Critical Minerals Facilitation Office (CMFO), Government of Australia, which aims at strengthening bilateral trade relationship and lays the path to deliver on a shared ambition to develop secure, robust and commercially viable critical minerals supply chains. The sources said that at present, nothing has been finalised, but there is a consideration that "we can think of some kind of mechanism under which India can get assured supply of these minerals". "We have to work on the details. How to craft that mechanism. It is broad thinking at present. It has never happened in any free trade agreement. We have an MoU with Australia. Now, we are thinking about how we can strengthen that MoU," they added. According to an official statement issued on March 11, India and Australia have reached a major milestone in working towards investment in critical minerals projects to develop supply chains between the two countries. Australia produces almost half of the world's lithium. It is also the secondlargest producer of cobalt and the fourth-largest producer of rare earth. Critical minerals are key raw materials for several high-demand manufactured goods. These minerals have applications in different sectors, including metallurgy, chemical industries and energy storage systems for renewable energy, electric mobility, power generation, high-end electronics and defence. Due to their importance, India is looking at a source for a smooth supply. The economic importance of these minerals and the risks in their stable supply make them important strategically also.
Source: Economic Times
India and Australia can scale up bilateral trade to $100 billion, Australia's trade and tourism minister Don Farrell said in an interview with ET's Deepshikha Sikarwar. Farrell said the trade deal with India is the start of a new relationship between the two countries in the backdrop of the pandemic-induced changes in geopolitical and economic structures. Edited excerpts: There seems to be a shiftin Australia's view ofIndia.Is this shift more strategic than economic? The Ukraine-Russia war has shown just how dangerous the world has become, particularly for small countries like Australia. And in a defence sense, we need friends. We have so many things in common with India - our history with the Commonwealth, our support for democracy, and a free and open society. We naturally gravitate towards like-minded countries. Where did the new (Australian) prime minister go on his first day on the job? He flew to Tokyo to meet with Prime Minister (Narendra) Modi. So, he obviously views it very significantly. They've met a number of times, and of course, the prime minister has come here for an extended stay. He missed parliament in order to come here and demonstrate his support. On the other side of the coin, economically, we have had a range of difficulties negotiating new free-trade agreements. We negotiated a free-trade agreement last year. Critics of that agreement said we couldn't get it through the Australian parliamentary process. In fact, we did, and we got it through in record time, and it came into force on December 29 last year. It is the start of a new relationship with India. And I think now's the time to get in on the ground. Post-Covid, the world has changed; the geopolitical situation has changed. The economic situation has changed. Where do you see the relationship heading in the next five years? At the moment, two-way trade between Australia and India is about $46 billion compared with China's $300 billion. We think we can do a lot more in an economic sense. We want to get that figure up to $100 billion, and I think that's achievable over the next five years. It's just going to take some effort. But what happened this week? Well, 27 of the largest companies in Australia took three or four days out to travel with the prime minister to India. That, I think, is a really positive sign. It was banks, it was mining companies, it was universities, it was a range of other businesses. How do you see India in terms of, say, sourcing products, as Australia still sources a lotfrom China? In the past, we've put all our eggs in one basket. We've learned the hard way that that's not the most sensible economic policy. India is about to become the most populous country. By 2030, half the population will be deemed to be in the middle class. So, there's a great opportunity there. You've got to look for friends in a more unstable world. Americans certainly view Indians as friends. We've got the Indo-Pacific economic framework being negotiated. In fact, there were some discussions here in India on that recently. That also presents an opportunity for building that relationship. India is not part ofthe trade pillar under IPEF. What kind of comfort can it be offered to getit on board? It is largely in the hands of the Americans. I know Mr Goyal met with the US commerce secretary, Gina Raimondo, this week, and I mentioned that would have been high on the list of topics for discussion. I mean, India has to make up its mind about which of the pillars it wants to come in on. They haven't ruled out yet coming in on the trade pillar. They've just said at the moment they're not comfortable joining. We would certainly encourage India to be part of all four pillars. How are the negotiations progressing on the other three pillars? They're all going forward. What date will they be finished? I couldn't tell you that. But we've had negotiations in Australia. We've had some negotiations in India. In May, I think there's going to be a ministers' meeting in Detroit. So, things are going in the right direction. The Americans understand the importance of re-engaging economically in the region. You never get exactly what you want in a free-trade agreement. I think if the Indians become satisfied with the trade pillar, that there is enough there, then I think they'll give some consideration to signing up. Australia and India are now talking about starting comprehensive economic cooperation agreement(CECA) negotiations. For India, services is a key area ofinterest. What can Australia offer? Access to Australian business and government operations. The big thing that Australia has to offer in these negotiations is in the renewable energy space. The US has just implemented the Inflation Reduction Act. Companies or countries which have a free-trade agreement with the US get preferred treatment in terms of supplying to the US with all of the ingredients for will end up going to the US. We say, that's not right. We've got good friends in the region, particularly India, and we want to make sure that we share our good fortune. Australia happens to have the largest or the second largest reserves of all the critical minerals that go into these batteries. We want to make sure that we share these with our friends in the region. And that means India. So, I actually think we bring quite a bit to the table. In terms of Mode 4 and people-to-people movement, what could Australia offer? Obviously, this has been one of the more difficult issues to deal with. But Australia at the moment, has massive labour shortage. And you've got all these young people with digital skills. Australia is reviewing its approach to immigration. You'll find a more relaxed approach by Australia, which will result in a far greater number of Indian students and workers coming to Australia. What would be Australia's expectations from India, particularly in areas Australia has aggressive interests, say, dairy and agriculture? Those were things that weren't dealt with in the first agreement. If they were easy to deal with, then they would have already been dealt with. So, they're the harder topics for India. I appreciate that they are hard to resolve. We do want to see access for our agricultural products. We're a great trading nation. We're a great supplier of good food and wine. Some progress has been made in the first agreement; we think we can go further. We don't want to flood the Indian market with our goods, but we would like greater access. And I think it's a winwin situation. Indian consumers get advantage of wonderful food and wine that we've created in Australia. What are the other interests Australia would like to be part ofthe outcome under CECA? I've mentioned renewable space. Australia historically has been a fossil fuel superpower. We want to be a renewable superpower. So that means critical minerals. That means rare earths. That means hydrogen and green hydrogen. So, we want to be in a position to supply India with those sorts of products. In the digital space, by 2030, India will have 900 million people on the internet. You're young people, very focused on the digital space. We need those sorts of skills. So we want to talk about that. Banking platforms - they're not easily transferable at the moment. We think there are some opportunities there. Space - that's the new frontier. And of course, defence. We're in the process of significantly expanding our defence capabilities. We think India has got a role to play in that. India recently had an agreement with Singapore in the digital payments sector.Is that something that Australia would be willing to pursue? Yes. In fact, we spoke about it not just at the ministerial joint meeting, but also at the meeting with the finance minister last night. We think there are some terrific opportunities there. We're structured slightly differently. In Australia, each of the banks has its own operations. So we've got to get a uniform system ourselves. We just need to sit down and work out exactly how we can implement that. I think discussions are well advanced in order to achieve that. Both countries have implemented an economic cooperation and trade agreement(ECTA). How is it working on the ground? Would Australia wantto renegotiate some chapters in ECTA under CECA? Without any reason to renegotiate things that are already settled, we do want to expand our horizons in this new agreement. We do want greater access to Indian markets. In the first month of coming into operation of the new agreement, $2.5 billion worth of Australian products got into India at a lower it's a very positive start. It's not a case of sort of looking back and renegotiating. It's a case of looking forward and saying, we know this system is working well. How can we build on that to get a better relationship?
Source: Economic Times
Growth in the Indian manufacturing sector is expected to continue in the last quarter (JanuaryMarch) of 2022-23 amid signs that cost pressure in the past many months seems to be softening a bit for the sector, a Ficci survey has said. The responses have been drawn from over 400 manufacturing units from both large and SME (Small and Medium Enterprises) segments with a combined annual turnover of over Rs 10 trillion. It added that the cost of production as a percentage of sales for manufacturers in the survey has risen for 73 per cent respondents, which is lower than 94 per cent as reported in previous survey. “Nonetheless, high raw material prices especially that of steel, increased transportation, logistics and freight cost, and rise in the prices of crude oil and fuel have been the main contributors to increasing cost of production,” it added. It mentioned that all the respondents expressed that there is sufficient availability of funds from banks and industry does not expect the borrowing rates to go up any further from the current prevailing rates. “Increase in repo rates in the last few months has led to a consequential increase in the lending rate by banks, thereby increasing the cost of borrowing for manufacturers,” it added. In February, the RBI’s Monetary Policy Committee (MPC) has raised the repo rate by 25 basis points to 6.50 per cent in order to bring inflation back towards the central bank’s 4 per cent target. The MPC has raised the repo rate by a total of 250 basis points since May 2022. The survey also looked at the dimensions that are important for manufacturing sector such as capacity addition and utilisation, exports, hiring, interest rate, sectoral growth, and workforce availability. On the sectoral growth based on expectations, it said Auto, Capital Goods, Cement, Electronics & Petrochemicals & Fertilisers sectors are poised to see a strong growth while Chemicals & Pharmaceuticals, Textiles, Apparels & Textile Machinery rest are expected to register moderate growth. “The outlook for exports seems to be waning as only about 30 per cent of the respondents expect their exports to be higher in the ongoing quarter as compared to the same period in the previous financial year,” it added. The report mentioned that the existing average capacity utilisation in manufacturing is around 75 per cent which is more than 70 per cent reported in the previous survey reflecting a sustained economic activity in the sector. According to the survey, the future investment outlook has also improved as compared to previous quarter as over 47 per cent respondents reported plans for investments and expansions in the coming six months amid continued volatilities in supply chain and demand caused by the Russia-Ukraine war and increasing cases of various mutations of COVID virus in other countries. “Increased cost of finance, cumbersome regulations and clearances, high logistics cost due to high fuel prices, low global demand, high volume of cheap imports into India, shortage of skilled labor, highly volatile prices of certain metals etc. and other supply chain disruptions are some of the major constraints which are affecting expansion plans of the respondents,” it added. FICCI’s latest quarterly survey assessed the sentiments of manufacturers for Q-4 Jan-March (2022-23) for eleven major sectors namely Automotive & Auto Components, Capital Goods, Cement, Chemicals and Pharmaceuticals, Electronics, Machine Tools, Metal & Metal Products, Paper Products, Petrochemicals & Fertilisers, Textiles, Apparels & Technical Textiles, Textile Machinery and Miscellaneous.
Source: Business-Standard
Indian exports have been witnessing a robust growth for quite a while now. They touched an overall $676.2 billion in the financial year 2021-2022 as both services and merchandise hit record high exports in the year. It has been a significant growth compared to the overall exports of $526.6 billion and $497.9 billion in 2019-20 and 2020-21, respectively. India’s merchandise exports had crossed $400 billion milestone in the financial year 2021-2022 and stood at $421.8 billion, which is a phenomenal increase of 44.6 per cent and 34.6 per cent over 2020-21 and 2019-20, respectively. The surge in growth of exports in FY 22 and the first half of FY 23 induced a shift in the production process from mild acceleration to the cruise mode. On its digital pathway, India is constantly achieving great heights, whether enabling better production processes through adopting Industry 4.0 or 5.0, or achieving Rs. 126 lakh crore of digital payments. The tech-enabled processes make trading through digital e-commerce and enable the country’s digital trade to scale new heightstapping into the export potential with a vibrant e-commerce marketplace. On its part, the Centre has launched many initiatives in order to encourage increased and accessible trade engagement. The E-commerce Export Promotion Council (EEPC) has greatly benefited MSMEs and tech-startups by providing them with increased access to technology, finance and training. The government is going the whole hog to create better opportunities for startups, SMEs, artisans and farmers (GI products) and service providers. The fact is that creation of a stronger international trade hub and trade e-corridor, promotion of ‘Make in India’ with thrust on handmade and historic artistry, marketing the skill set through a global demand, giving the market a larger variety thereby increasing opportunities for tourism, cuisine, and trade, penetrating the first-world space using the e-commerce global market demandare all cases in point. Moves are afoot to bring in compliant, transparent, costeffective, and reliable export practices through portals like the Indian Customs Electronic Data Interchange Gateway (ICEGATE), a national portal of The Central Board of Indirect Taxes and Customs (CBIC), acting as an information hub for export trading partners. One cannot overlook the underlying commitments and vision of the present government towards digitizing exporters, supporting MSME and encouraging greater exports of ‘Made in India’ products. During the pandemic, online or e-commerce platforms have shown immense potential in supporting millions of businesses to sustain themselves. But the government vision is older than this. The vision has to be looked on a much broader canvas. Increasing the youth’s interest in nation-building and business, using the global marketplace as a tool to increase desired opportunity within the country are integral to this broad vision. This, in turn, promises to control outward migration of our bright, young talents. The government’s ‘Digital Drive’, coupled with ‘Startup India’ initiative catalyse small-scale and new businesses, allowing youth independence in business and trade. Together, they can be a game changer in the chronicles of Indian trade and commerce, if executed properly. However, there should not be any gap between the cup and the lip.
Source: Bizz buzz
INTERNATIONAL
Governor Glenn Youngkin today announced that SanMar Corporation, a supplier of wholesale accessories and apparel, will invest at least $50 million to establish a distribution operation in the East Coast Commerce Center in Hanover County. The 1.1 million-square-foot speculative distribution building was developed by Equity Industrial Partners Corp. and Raith Capital Partners and will be SanMar’s largest operation, becoming the flagship center for the company’s East Coast distributions. Virginia successfully competed with North Carolina for the project which will create up to 1,000 new jobs when the facility reaches full capacity. “Securing SanMar Corporation’s flagship distribution center highlights Virginia’s strategic location, strong infrastructure, and workforce as critical decision factors for logistics operations,” said Governor Glenn Youngkin. “Hanover County has become a regional hub for the U.S. supply chain, and we are proud that the East Coast Commerce Center’s attracted an industry leader like SanMar. We look forward to partnering with SanMar as they continue to expand in the Commonwealth.” “SanMar’s new operation will be a substantial addition to Virginia’s diverse logistics sector and bring valuable jobs and an economic boost to Hanover County,” said Secretary of Commerce and Trade Caren Merrick. “Securing a project of this caliber says a great deal about the Commonwealth’s strategic location, competitive operating costs, and top-notch workforce, and we are proud to welcome SanMar’s largest distribution facility that will create up to 1,000 new jobs.” “Whenever we look at a facility, of course we’re looking at logistics and the labor market, but we’re also really looking at the community and the culture, and the people who will be working in the building,” said Jeremy Lott, CEO of SanMar. “When we came here, we knew right away that this is a place we wanted to be. As we met and talked with people in the area, we knew this could be a great fit for us and for our future growth. We couldn’t be more excited to be here—to fill up this building, to build our team here, and to make this a home for a really long time.” “I am delighted to welcome SanMar to our community as they commence moving into the existing building at East Coast Commerce Center,” said J. Robert Monolo, Beaverdam District representative for the Hanover County Board of Supervisors. “From day one the company has emphasized their responsibility to future employees and expressed desire to be a strong corporate citizen. SanMar will add to the already outstanding and strong business community we are blessed with in Hanover County.” “SanMar’s strategic decision to locate in Virginia holds real value for the company, The Port of Virginia, and the Commonwealth,” said Stephen A. Edwards, CEO and executive director of the Virginia Port Authority. “The Hanover County location gives SanMar easy access to Richmond Marine Terminal, which is an important, growing, inland logistics center on I-95. The port benefits because of an increase in volume, and then the job creation and investment has benefits that reach across Virginia. We are excited about the opportunities of having SanMar as a port user and are looking forward to a very productive, long-lasting relationship.” “Exciting news out of Hanover County today as they welcome SanMar Corporation,” said Senator Siobhan S. Dunnavant. “This expansion to Virginia is a testament to the value of an effective workforce pipeline in Central Virginia and the Commonwealth that boosts local economies and provides economic opportunities.” “I am thrilled and excited to welcome the SanMar Corporation to Hanover County! SanMar’s investment of $50 million in our economy with the construction of their distribution center and the accompanying 1,000 jobs will provide much-needed boost to our economy. I look forward to visiting their facility,” said Delegate Buddy Fowler. At SanMar Corporation, the company does more than make and sell t-shirts. SanMar builds meaningful connections that elevate lives. As the largest supplier of wholesale imprintable clothing and accessories in the United States, the company’s products and the connections created impact organizations, individuals, and the world we live in. It all started more than 50 years ago with a business philosophy that has held true since day one: Be Nice and Tell the Truth. Family owned and operated, SanMar is based in Issaquah, Washington, with eight additional distribution centers nationwide and apparel from more than 30 celebrated brands. The Virginia Economic Development Partnership worked with Hanover County and The Port of Virginia to secure the project for Virginia. The company is eligible to receive benefits from the Port of Virginia Economic and Infrastructure Development Zone Grant Program.
Source: Textile World
Milliken & Company announced the launch of its textile business’s first-ever brand campaign, “Anything. Everywhere.” Anchored by a new landing page and brand video, the campaign explores the many roles textiles play in everyday life. “Our goal is to show the public that textiles go well beyond the clothes on your back. The work we do to design and manufacture some of the highest performing fabrics in the world is transforming industries and improving lives,” said David Smith, executive vice president, Milliken & Company, and president, Milliken’s Textile Business. Milliken’s textile history dates back to 1884 with its investment in 43 textile mills across the U.S., cementing its position as a leader in the booming American textile industry. It began manufacturing textiles of its own in 1944 at the Defore Mill in South Carolina, which produced tire cord during World War II. Today, the Milliken’s textile portfolio extends across four categories, including building and infrastructure, automotive, apparel, and protective fabrics. Headquartered in Spartanburg, South Carolina, Milliken’s Textile Business employs more than 4,500 associates with a manufacturing global footprint that spans across 26 plants. “Our business is incredibly diverse, from the industries we serve to the products we develop. That’s what makes the ‘Anything. Everywhere.’ campaign so comprehensive; it captures the power of textiles in the simplest form, by showing them applied to everyday life,” noted Michael Eckert, director of brand and content for Milliken’s Textile Business. He adds, “This campaign asks everyone to consider what textiles can do for them. We’re pushing the limits of what is expected from a manufacturing company.” The campaign debuted in December 2022 and will continue to run through social media channels, trade shows and events, and other digital platforms. You can explore the Anything.
Source: Textile World
Kiabi, the French affordable apparel brand present in 15 countries, is in talks to enter the Indian market, people aware of the development said. The brand is owned by The Association Familiale Mulliez (AFM), the holding company of the Mulliez family, which also controls Auchan supermarket, Decathlon and around a dozen other retail brands. The company’s global team visited India recently, to explore retail space and also visited some premium malls in the national capital Delhi. “The company had initiated the discussion to enter India market pre-pandemic but covid slowed down the process. They have now appointed a consultant to facilitate India entry,” said one of the people quoted above. The brand is looking for large-format stores in metro cities. In the past India’s consumption structure was skewed over a narrow base of rich consumers accounting for a large portion of the market, according to consumers. However, now the opportunity for value formats and value brands is expanding due to the broadening of the economy across many more cities and the impact reaching further down the income ladder. As the world’s second most-populated country, India is an attractive market for apparel brands, especially with youngsters increasingly embracing western-style clothing. According to a CBRE’s report, international brands such as Tim Hortons, Victoria’s Secret, and Uniqlo continued to expand during Jul-Dec ’22, despite global headwinds.
Source: Apparel Resources
