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The polyester chain delta decreased Y-o-Y with weaker deltas across the chain except PX amidst slow demand recovery in China. Polyester chain margin was $ 524/MT during 2Q FY24 as against $ 600/MT in 2Q FY23, informed a press communiqué issued by Reliance Industries Limited (RIL) here. During 2Q FY’24, RIL said that PX margin over Naphtha improved Y-o-Y with strong PTA operation in China and favourable gasoline economics led to diversion of PX production into gasoline pool. PTA margins impacted due to firm PX prices. MEG-Naphtha margins remained stable Y-o-Y; however, continue to remain significantly below 5-year average amidst higher China MEG inventory levels and capacity overhang. On Y-o-Y basis, domestic polyester demand increased by 12% with improvement in PET demand by 28% amidst strong pull from beverage segment. Both PSF and PFY demand improved by 8% due to improved economic activities and prefestive season stocking, RIL informed.
Source: Tecoya Trend
Norse Brands, known for its premium home and lifestyle products from Denmark, Norway, Sweden, and Finland, in collaboration with DCHome by DICITex have unveiled their luxurious 'Nordic Sleep by Fossflakes' collection in the Indian market. The new collection represents a blend of exquisite craftsmanship, innovation, and comfort, reflecting the rich heritage and aesthetic of the Nordic regions. With this launch, Norse Brands aims to establish itself as a prominent distributor of Nordic/ Scandinavian high-end fashion, home, and lifestyle brands globally, with India as a key focus. Expressing enthusiasm for the launch, Mr. Henrik Haagen, the Co-Founder & Director for Norse Brands, remarked, “The introduction of the Nordic Sleep collection to the Indian market which is now focusing on lifestyle changes and sleep being the top most priority, fills us with pride. These offerings not only reflect the essence of Norse and Nordic culture but also offer our customers an immersive experience of elegance and comfort. We believe this collaboration will resonate with those who appreciate exceptional quality and style, and value a good night's sleep. Norse Brands is also proud to announce that it is bringing the exquisite glassware brand “Frederik Bagger” to india through its retail partners and also concentrating on Home as a holistic approach.” Mr. Rajjnish Aroraa, Vice Chairman along with Mr. Nimish Arora, Managing Director, representing the esteemed Dicitex Furnishings Group, shared their excitement about the partnership, stating, “Our collaboration with Norse Brands is a significant milestone in our commitment to provide top-notch home furnishing solutions. We are thrilled to bring the luxurious Nordic Sleep by Fossflakes collection to the discerning Indian audience, adding timeless charm, unmatched comfort to their lifestyle and emphasising sleep as the most crucial aspect to complete wellbeing.” It may be noted here that from Denmark, the renowned 'Nordic Sleep' by Fossflakes specialises in crafting sustainable, high-quality pillows and duvets using a unique filling technique inspired by the natural air-trapping abilities of down and feathers. Notable for their hypoallergenic properties and durability, Fossflakes products cater to various needs, including specialised pillows for adults and children such as Chiropractic, Nursing, Maternity, and Ergonomic pillows.
Source: Tecoya Trend
M&S, a mainstay of the UK high street, has been trying to appeal to younger shoppers globally and announced an overhaul of its stores to expand its brick and mortar prese build a more resilient business and focus on quality merchandise. Also, companies suc Levi's, Uniqlo and Celio are increasingly getting popular for functional basics like T-shir jeans, unlike fast-fashion rivals that are associated with designs that move quickly fro catwalk to the showroom. British retailer Marks & Spencer (M&S) said it is opening a store every month in India, accelerating their outlet expansion though a quarter of their sales comes from online channels. India is already its largest international market outside home in terms of store network with 100 stores opened in the last 15 years. "If you just look at the market, whether there are customers to buy M&S; there's disposable income, there is enough macro and opportunity at play here. Because of where the Indian economy is, the country is bound to be a priority market," said Ritesh Mishra, India MD at M&S, which operates in the country through a joint venture with Mukesh Ambani's Reliance Retail. The plan is to take their retail space from 1.1 million square feet now to 1.4 million sq ft by end of the year. "We are already in about 36 cities. And even within those cities, there's far more opportunities for us to do a bit more. So, as and when we get the right real estate, right malls, right locations, etc, we want to open more and more stores," he added. M&S, a mainstay of the UK high street, has been trying to appeal to younger shoppers globally and announced an overhaul of its stores to expand its brick and mortar presence to build a more resilient business and focus on quality merchandise. Also, companies such as Levi's, Uniqlo and Celio are increasingly getting popular for functional basics like Tshirts and jeans, unlike fast-fashion rivals that are associated with designs that move quickly from the catwalk to the showroom. However, bargain-hunting cash-squeezed Indian consumers still largely perceive M&S as pricey compared to local brands like Zudio and global fast-fashion labels such as Zara and H&M. "I think fast fashion is an overrated word. We stand for quality and elevated style essentials. Linen is one very essential category, swimwear is another. These are our strengths and we will back it up. And in India, if you have more colour, you are in fashion. So, we drive those credentials," said Mishra, who was previously head of operations and property at the UK-based clothing retailer. Over the past few years, India has seen a clutch of the world's largest apparel brands open outlets betting on young consumers increasingly embracing western-style clothing. Over the past few quarters, most apparel retailers have seen growth tapering off as shoppers cut back on discretionary spends.
Source: Retail.economictimes.indiatimes.com
The continuous rise in the import of dyed knitted fabrics, despite the imposition of import duties, is causing concern in Tamil Nadu’s textile industry, according to Prabhu Dhamodharan, the Convenor of the Coimbatore-based Indian Texpreneurs Federation (ITF). Dyed knitted fabrics are widely used in the production of various garment types. In the first five months of the current fiscal year, India imported knitted fabrics worth $276 million (₹2,270 crores), averaging ₹450 crores per month, primarily from China. Notably, dyed knitted fabrics under one HS code alone contribute to 30% of these imports. This influx of dyed knitted fabrics has a direct impact on several sub-sectors of Tamil Nadu’s textile manufacturing industry, including spinning, knitting, and processing, as stated by Dhamodharan in an interview with Businessline. The ITF encompasses the entire value chain of textile manufacturing. Dhamodharan expressed concern over the negative effects of these imports on domestic yarn and fabric manufacturing, with various affiliated manufacturing companies citing growing apprehension. Tirupur, a major textile hub, produces approximately ₹35,000 crores worth of knitwear apparel, such as t-shirts, innerwear, women’s leggings, and shorts, for exports, and ₹20,000 crores worth of products for the domestic market. To reach ₹50,000 crores worth of finished materials, the necessary basic materials – yarn, fabric, and dyeing capacity – are readily available in and around Tirupur. However, the entry of imported dyed knitted fabric into the Tirupur market directly affects units operating in spinning, dyeing and processing, knitting, and compacting sectors. Dhamodharan explained that “the imported dyed fabric eliminates all the processes that have been done in and around Tirupur and Coimbatore with the involvement of multiple units.” He further stated that the cluster can produce ₹15,000 crores worth of such fabric. A preliminary study revealed that a majority of these imports are facilitated through traders who distribute the fabric to domestic garment manufacturers, particularly in key hubs like Coimbatore and Tirupur. The retail selling price of these dyed fabrics in the domestic market fluctuates between ₹320 and ₹350 per kilogram. Considering the 20% import duty, the cost of these fabrics upon landing is concerning. Manufacturing at such price points appears unviable in any part of the world, Dhamodharan pointed out. He stressed the need to scrutinize the materials used and ensure that imports are correctly valued, thereby avoiding potential malpractices like under-invoicing or mislabelling with different materials and HS codes. With numerous spinning mills, knitting fabric and processing units in Tamil Nadu producing similar fabric, the surge in imports poses a significant threat to the state’s textile manufacturers. Dhamodharan emphasized the importance of conducting a thorough examination of this issue and presenting a detailed report to the Union and state governments, seeking their attention and assistance.
Source: Textile Value Chain
India and the UK on Saturday reviewed the progress of negotiations of the proposed free trade agreement (FTA), talks for which have reached the final stage. The progress was reviewed by Commerce and Industry Minister Piyush Goyal and UK Secretary of State for Business and Trade Kemi Badenoch in Osaka, Japan. Both ministers are in Japan for the Group of Seven (G7) trade ministers meeting in Osaka. “Discussed the progress of India-UK free trade agreement negotiations with UK Secretary of State for Business and Trade Kemi Badenoch,” Goyal said on social media platform X. Negotiations between senior officials of India and the UK are on to bridge differences on issues such as rules of origin and services sector, with an aim to conclude the talks for the proposed FTA at the earliest. India and Britain launched the talks for a trade agreement in January 2022, with an aim to conclude them by Diwali last year (October 24, 2022), but the deadline was missed due to political developments in the UK. There are 26 chapters in the agreement, which include goods, services, investments and intellectual property rights. An investment treaty is also being negotiated as a separate agreement between India and the UK. These investment treaties help in promoting and protecting investments in each other’s country. The main point of contention in this pact is the mechanism for settlement of disputes. The Indian industry is demanding greater access for its skilled professionals from sectors like IT, and healthcare in the UK market, besides market access for several goods at nil customs duty. On the other hand, the UK is seeking a significant cut in import duties on goods such as scotch whiskey, automobiles, lamb meat, chocolates and certain confectionary items. Britain is also looking for more opportunities for UK services in Indian markets in segments like telecommunications, legal and financial services (banking and insurance). The bilateral trade between India and the UK increased to USD 20.36 billion in 2022-23, from USD 17.5 billion in 2021-22. Further, Goyal also held bilateral meetings in Osaka with US Trade Representative (USTR) Katherine Tai; World Trade Organization (WTO) Director General Ngozi Okonjo-Iweala; Japanese Economy, Trade and Industry Minister Nishimura Yasutoshi; Japanese trading and investment major Matsui and Co; Director and Chair of Board of Directors Tatsuo Yasunga, and Australian Trade and Tourism Minister Don Farrell. “Held a productive discussion on scaling up the India-US trade and investment ties with USTR Katherine Tai,” he said. With the WTO chief, the Indian minister deliberated upon greater cooperation to ensure free and fair trade among member countries.
Source: Financial Express
Commerce and Industry Minister Piyush Goyal on Saturday urged the countries participating in the G7 trade ministers meeting to enhance collaboration on a regulatory framework to facilitate cross border trade. The Group of Seven (G7) trade ministers meeting was held in Osaka, Japan. Under its G7 presidency this year, Japan has invited India, along with a few other invitee countries (Australia, Chile, Indonesia, and Kenya) to participate in the outreach programme held on October 28. In the meeting, Goyal "urged the governments to collaborate on a regulatory framework to ease the movement of supply chains and facilitate cross border trade," an official statement said. He said the Covid-19 pandemic and geopolitical events have highlighted the vulnerabilities of the existing supply chains leading to increase in commodity prices and global inflation. The Russia-Ukraine war, conflict between Israel and Hamas and global economic uncertainties are impacting flow of goods across the world. India's exports have also been impacted due to these reasons. The minister encouraged public-private partnership, investment in critical infrastructure and the need for innovation and digitalisation of supply chains. Goyal highlighted the need for supply chain diversification and skilling and re-skilling of the personnel. During the session, representatives from the governments, private sector and international organisations like OECD (Organisation for Economic Cooperation and Development) and WTO (World Trade Organization) also participated. "Suzuki made a presentation on their experience in India. Suzuki mentioned how they developed a reliable and trusted vendor base in India and achieved over 95 per cent indigenisation in their supply chains in India," the commerce ministry said. G7 is an intergovernmental forum comprising seven important countries of the world. It accounts for over half of the global network wealth, 30-43 per cent of global GDP and 10 per cent of the world's population.
Source: Economic Times
An end of year deadline for a free trade deal between India and the European Union is unrealistic, the 27-nation grouping’s Ambassador to India, Hervé Delphin, said in an interview. Stressing the need for a level playing field for European businesses, Delphin cited concerns about India’s regulatory uncertainty as a potential dampener on EU investments. Edited excerpts:
How are the India-EU FTA talks going? I don’t think that, to my knowledge, India has had such a large-scale FTA with any other partner. You cannot compare us with the UAE or Australia or even the UK. It (EU) is the biggest market in the world and this means a degree of complexity in terms of negotiation. Access to the EU market is a very high price for anyone and we don’t give it like this. It’s part of a negotiation based on reciprocal arrangements and fair and transparent mechanisms that will create a level playing field. So that is the condition of having an FTA. So far, the negotiation has been going on at quite a sustained pace. There is clearly a political momentum and backing behind it. For us, we are fully committed. There may be a senior-level official meeting again in November. I see business communities on both sides very eager to have the FTA. Our trade has tripled in the last few years and India is also rising as an investor in Europe. It’s true that for Europe’s investors or companies, entering the India market is quite a high- price market. When you are an SME or even a bigger size company entering the Indian market, people will think twice if it’s worth the investment. I guess you’ve heard and I’ve heard European companies expressing concerns about quality control orders, market access, regulatory conditions or quantitative restrictive measures. What I can only say is that business wants predictability. What we’re trying to achieve with the FTA is creating this level playing field.
India is close to a general election. Is there a timeline for completing the FTA? I’m not in the negotiating team, but as of right here, there was a lot of hype about having the FTA completed by the end of the year. I mean, anyone in his right mind, knowing the complexity of this negotiation, will not believe for a second that it was an achievable target. So it may be aspirational. But you cannot consider that concluding the FTA by December is realistic. And the question is, do we want to rush to a deal for the sake of saying we met the deadline at the risk of ending up with a bad deal? Or do we want to continue to be committed to state of the art modern, comprehensive FTA and it will take the time it takes? I think reasonably speaking the latter is better than the former.
There has been a lot of conversation about the EU’s Carbon Border Adjustment Mechanism (CBAM). It has attracted some criticism in India. How should both sides navigate this? One thing that struck me when I arrived here was that there was so much negative coverage about CBAM here, based on quite a number of misconceptions. I think to consider that CBAM as a protectionist instrument is completely misleading or missing the point about what it is. First, you are familiar with the CBAM and the transitory period, so we are not taking anyone by surprise. We are not targeting anyone by design. It’s not targeted at a company or a specific country. We are looking at the six sectors that are big carbon emitters and where the trade with Europe could lead to carbon leakage and could actually create an uneven playing field for European companies that are subjected to ETS trading. So to say that this is protectionist, for me, is missing the point of what we are trying to achieve, which is basically a contribution to the global commitment that all the partners have committed to reduce carbon emissions around the world. So this is us walking our talk. This is also not unilateral because you can take out your own emissions trading scheme and you can offset them from our own system. So it’s up to you to design your system.
How has your conversation with the Indian government been on CBAM? There have been discussions but it was not expressed in the sense of an aggressive “this cannot be". There were civilized conversations and indeed, on the EU side, an absolute willingness to walk the extra mile to explain CBAM and to organize different seminars so that it’s absolutely clear how it’s gonna work.
How do you see the evolving conflict in West Asia? I worked in the region of the Middle East and dealing with what is the so-called Middle East peace process. You don’t see much of the peace now, unfortunately. People have to keep their head cool because the risk of escalation is significant. So everyone has to be guarded not to take any step that could have dramatic consequences. And I think messages are passed around to prevent any further escalation. Actually what India said is very similar to what the EU said about standing with Israel in solidarity in the face of a brutal, horrific terrorist attack, but to go back to the fundamental element of Oslo of a viable two-state solution. I was in charge of humanitarian assistance in the region. So I’ve been in Gaza to make sure that there was aid flowing in. So, I feel very emotionally connected to it because there are people I know there. This is horrendous. I was looking at the statistics of the casualties (of the conflict). Almost half of the victims are children. In international law, you have to ensure access to civilians. There is a principle of distinction, the principle of precaution, the principle of proportionality. This is what the IHL (International Humanitarian Law) is saying. And no one can stand above IHL. "Exciting news! Mint is now on WhatsApp Channels
