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The government is expected to start disbursement of fiscal incentives under PLI for white goods in the last quarter of this financial year as certain selected beneficiary firms have started production, DPIIT Secretary Rajesh Kumar Singh said on Tuesday. The production linked incentive (PLI) scheme on white goods seeks to encourage domestic manufacturing of air conditioners and LED light components. "In the last quarter (January-March), we are expecting some disbursements," Singh told reporters on the sidelines of the India Korea Business Partnership Forum meeting here. Of the 64 selected beneficiaries of the PLI scheme, 15 have started production. These 15 beneficiaries had opted for a gestation period of up to March 31, 2022. Rest of the beneficiaries who opted for gestation period of up to March 31, 2023 are at different stages of implementation. The scheme is to be implemented over a seven-year period, from 2021-22 to 2028-29 and has an outlay of Rs 6,238 crore. Singh also said that in PLI sectors like auto and white goods, gestation period is longer and companies have to cross the investment threshold to qualify for the incentives, which takes time. This is the design of the scheme and investments and production have to be front-loaded and then benefits are provided, the secretary in Department for Promotion of Industry and Internal Trade (DPIIT) said. Till March, Rs 2,900 crore worth incentives have been disbursed under the Rs 1.98 lakh crore PLI scheme. Approval of the Rs 1,000 crore additional incentives for this year has been granted for companies engaged in electronics manufacturing. The secretary said that some of the sectors in the PLI scheme like electronics, mobile manufacturing, pharma and food processing are doing well while in some sectors like textiles, certain correction is needed. On semiconductor manufacturing, he said the government is encouraging the private sector to come forward and take advantage of opportunities in the semiconductor sector in India. India has put in place a comprehensive fiscal support for semiconductor segment. With the approval of the programme for development of semiconductors and display manufacturing ecosystem in India with an outlay of Rs 76,000 crore, the government has announced incentives for every part of the supply chain including electronic components, sub-assemblies, and finished goods. In the current geopolitical scenario, trusted sources of semiconductors and displays hold strategic importance and are key to the security of critical information infrastructure. Development of the semiconductor and display ecosystem will have a multiplier effect across different sectors of the economy with deeper. In semiconductors, "talks are on and we are encouraging private sector partnerships to come forward and take advantage of the opportunities," Singh told reporters here. Earlier in his address at the meeting, Singh said huge opportunities are there in India for South Korean firms in the USD 10 billion semiconductor manufacturing scheme. South Korea is the second largest semiconductor manufacturer in the world with 17 per cent share and is a leader in memory chips and displays. Samsung and S K Hynix are the major manufacturers. On taking the bilateral trade between India and South Korea to USD 50 billion, the secretary said export opportunities are there for domestic sectors like light engineering and pharma. On the other hand, South Korea has an opportunity to export goods from hightech sectors like electronics, critical components, and display. In 2022-23, the bilateral trade stood at USD 27.9 billion as against USD 25.6 billion in 2021-22. Singh said that there are opportunities for Korean companies in the semiconductor space in India where over USD 8 billion of USD 10 billion worth incentives remain unsubscribed. He also urged Korean companies to invest in India's semiconductor and renewable energy sectors to help accelerate digital and green transition. "We have taken note of the suggestion that the India-Korea Comprehensive Economic Partnership Agreement (CEPA) needs to be upgraded to further strengthen bilateral relationship," he added. The agreement, a kind of trade pact, was signed in August 2009.
Source: Economic Times
Textile manufacturer Alok Industries will raise Rs 3,300 crore through the issue of NonConvertible Redeemable Preference Shares (NCRPS) to its parent company Reliance Industries, the company said in an exchange filing on Tuesday. Alok Industries was acquired by Reliance Industries and JM Financial ARC in 2019 under the corporate insolvency resolution process. In a regulatory filing, Alok Industries said, "The company is issuing Rs 3,300 crore NCRPS of Re 1 each in one or more tranches on a private placement basis to Reliance Industries." The company added that NCRPS will have a dividend of 9 percent per annum on a cumulative basis and is “redeemable at par at any time at the option of the Company within a period not exceeding 20 years from the date of allotment”. In its July-September quarterly earnings, Alok Industries' revenue from operations fell 19.99% from the previous year to Rs 1,359.02 crore. Its loss narrowed from Rs 191.5 crore last year to Rs 174.83 in the quarter. However, its EBITDA more than doubled to Rs 46.18 crore from Rs 19.22 crore.
Source: Economic Times
India's Arvind Fashions reported a 18.9% rise in the second-quarter profit on Tuesday, aided by healthy sales of clothing and footwear and as power brands helped it maintain wider margins. The Bengaluru-based company's consolidated net profit rose to 216.6 million rupees ($2.60 million) for the quarter ended Sept. 30 from 182.2 million rupees a year earlier, sending its shares up as much as 8%. While consumer demand continued to remain soft, Arvind Fashions' strong performance in the multi-brand outlet channel and tighter control over inventories resulted in higher profit, the company said. The earnings before interest, taxes, depreciation, and amortization (EBITDA) margin improved by about 50 basis points from a year ago, it added. Fashion retailers have seen a shift in demand due to a delayed festive season, which for 2023, began late October. Usually, the festive season aids companies clock higher annual sales as customers spend on clothes, accessories and footwear. Arvind Fashions, which has a portfolio of owned and licenced international brands such as Arrow and Calvin Klein, said its consolidated revenue from operations rose 7% to 12.67 billion rupees in the September quarter. Revenue from so-called power brands like US Polo and Tommy Hilfiger, which accounts for more than 80% of the total, rose 5%. The company's emerging brands segment clocked a 19% jump in revenue while the footwear segment posted revenue growth of about 20%. Last week, Arvind Fashions exited its Sephora India business as the company sold its beauty brands division to billionaire Mukesh Ambani's retail unit Reliance Retail. Rival Shoppers Stop last month reported a drop in the second-quarter profit. Tata Group-owned Trent, that operates retail chain Westside, reported a near three-fold surge in profit on Tuesday.
Source: Economic Times
As the CEO of Indo Count Industries Ltd., I am proud to share our exciting plans for future growth. Over the years, our prudent capital allocation strategy has been a crucial pillar of our success. It has enabled us to make strategic investments, positioning Indo Count as the largest global bed linen player. With an investment of over ₹1,000 crores, we have embarked on a journey to achieve two-fold revenue growth in the future. Moreover, despite significant capital expenditure, we’ve managed to maintain strong free cash generation, leading to a reduction in our net debt from ₹900 crores in FY22 to ₹589 crores in FY23. Our expansion strategy includes multiple initiatives designed to de-risk our business and increase our market reach. One such vital step is our acquisition of GHCL’s home textile business. This strategic move not only provides us with a complementary product base but also brings in excellent talent and strong customer relationships. This combination is poised to drive our market reach and growth prospects to the next level. With this acquisition, we gain access to the Australian market, which is a substantial home textile market, equivalent in size to the UK. This becomes even more significant as India recently signed a Free Trade Agreement with Australia. This expansion helps diversify Indo Count’s global presence, ensuring we are well-positioned for long-term success. Furthermore, we’ve amalgamated our subsidiary, PSML, with the company to seamlessly integrate business operations. This strategic move brings valuable assets like land and buildings into our fold. We are utilizing these assets to add approximately 68,000 spindles for spinning special yarns, contributing to our overall margin enhancement. In line with our vision, we have a detailed blueprint for increasing the contribution of value- added segments to our topline. We are focusing on promoting fashion, utility, and institutional bedding products that are gaining traction in the market. To support this, we have invested in a state-of-the-art Top of the Bed (TOB) unit, which is now operational. Additionally, we are strengthening our back-end operations to deliver value-added goods to both export and domestic markets. We are optimistic that these efforts will allow us to scale the share of value- added products to 30% of our revenue in the future. Our domestic business is also gaining traction with the successful launch of our brands, Boutique Living and Layers. These brands have made a strong presence in the Indian bed linen space, and we anticipate good growth numbers in the near term. Despite numerous external challenges, we had a successful close to FY23, maintaining our performance. The industry faced headwinds such as demand slowdown in international markets due to high inflation, supply chain disruptions, and record-high commodity costs. Inflation was a major challenge as consumers shifted their spending to essential products, delaying discretionary purchases. We are proud that Indo Count successfully navigated these challenges by focusing on expanding valueadded segments and brand-building initiatives. In the past two years, we have completed multiple capacity and capability-enhancing projects. We’ve modernized our Gokul Shirgaon spinning capacity with compact spinning technology, and have added 68,000 spindles at our Hatkanangale (PSML) facility which have become fully operational from Q2, FY2023-24. Additionally, we’ve increased home textile capacity at our Kolhapur facility and invested in sewing facilities and TOB capacity. These developments allow us to serve our customers better and increase the value-added quotient in our business. The seamless commissioning and integration of these facilities will help us become more competitive and efficient as demand continues to grow. India’s economic progress is promising, and we believe the growing disposable income and aspirations of the middle class will lead to increased demand for branded home textile products, offering significant opportunities for local brands. Indo Count Industries, with more than three decades of experience, is a leading manufacturer and exporter of bed sheets, bed linen, and quilts from India. Our dedication to providing ultimate comfort to consumers is reflected in the high-quality, luxurious bedding solutions produced in our state-of-the-art manufacturing plants. Our product range includes bed sheets, bed linen, quilts, premium sheet sets, fashion bedding, utility bedding, and institutional bedding, all certified to meet prestigious international quality standards. We maintain an omnichannel presence for our branded portfolio and have recently completed two licensed brand tie-ups with Jasper Conran and Gaiam. We are committed to diversifying our geographical mix by expanding our presence in the EU, UK, and Australia. Our recent acquisition of GHCL’s home textile division positions us to tap into a new customer base and further strengthen our market presence. We are dedicated to evaluating our impact using a holistic ESG lens, emphasizing sustainability and corporate responsibility. We are focusing on minimizing our environmental footprint by implementing measures such as a biogas plant for internal energy consumption and various energy conservation initiatives. Water management is another critical area where we are making strides to address the global water crisis. Our commitment to ESG principles goes hand in hand with our vision to be more responsible, compassionate, maintain high standards of integrity, be resilient, and continue innovating to inspire quality products. As the CEO of Indo Count Industries Ltd., I am confident that our strategic initiatives will not only lead us to a brighter future but also contribute to our vision of becoming a sectoral benchmark in value creation and corporate citizenship. We look forward to the opportunities and challenges that lie ahead, and we are committed to creating a sustainable and prosperous future for Indo Count and our stakeholders.
Source: Indian Textile magazine
Notwithstanding the phone call between PM Narendra Modi and his British counterpart Rishi Sunak last Friday, the much talked about visit by the UK PM to India is not on the cards until the Free Trade Agreement is finalised and ready to be signed. Sunak has also been kept busy by developments in West Asia and there are speculations that a trip in the middle of a conflict may not be feasible, ET has learnt. There are reports that the deal could be sealed in December after the state assembly elections. The two sides have differences whether taxation will be included in a proposed investment protection pact, as well as the UK’s demand that tariffs be cut on electric vehicle exports to India. Launched on January 13, 2022, the India-U.K. FTA began its latest 13th round of negotiations on September 18. The two sides were earlier looking to conclude FTA negotiations in October for a visit by Sunak in October last week ahead of Diwali. But final deal is yet to be India-UK bilateral trade has increased from $17.5 billion in 2021-22 to $20.36 billion in 2022-23. With the talks reaching a critical juncture, both sides are now discussing contentious issues like tariffs on alcohol, Scotch whisky, rules of origin and visas for professionals. Sunak spoke to Prime Minister Narendra Modi last Friday afternoon during which both leaders discussed the need to "de-escalate" tensions and the importance of protecting innocent civilians in the Israel-Gaza conflict The phone call centred around the situation in the Middle East but also covered bilateral ties and the progress being made towards an "ambitious" deal in the ongoing India-UK free trade agreement FTA negotiations. The leaders discussed recent progress on free trade agreement negotiations. They agreed on the importance of securing an ambitious deal that benefitted both sides, according to a UK government readout. Sunak would likely showcase the deal as a benefit of Brexit.
Source: Economic Times
Expressing concern over the call given by open-end spinning mills for a three-week strike, AIADMK general secretary Edappadi K. Palaniswami on Tuesday urged the DMK government to call representatives of the mills for talks and persuade them to give up the proposed strike. In a statement, he referred to the demand of the owners of the mills for a reduction in the electricity tariff, and found fault with the government for not responding to the demand. He gave a comparative account of the current tariff and what was in force during the previous AIADMK government. He wanted the authorities to call the mills’ representatives in Coimbatore and Tiruppur districts for talks and resolve the issue. Separately, AMMK general secretary T.T.V. Dhinakaran sought the intervention of Chief Minister M.K. Stalin on the issue.
Source: The Hindu
Reshmi’s latest generation of Precision Assembly Winders has received overwhelmingly positive feedback from customers since its debut at ITME Noida 2022 and ITMA Milan 23. Since the product’s launch, Reshmi has successfully secured orders from leading spinning units, including RSWM, Baba Spinners, Nitin Spinners, and more. Driven by a growing demand from spinning units equipped with TFO and Ring doublers, as well as standalone twisting units, Reshmi recognized the need for a technologically advanced precision assembly winder that reduces the reliance on manual labor and minimizes spare parts consumption. In response to these requirements, Reshmi developed the ULTIFLEX Precision Assembly Winder, equipped with well-proven counter-rotating blades for yarn laying, catering to all types of spun yarns. Reshmi’s core team’s primary focus was to strike a balance between cutting-edge technology and affordability. Here are some of the remarkable features offered by the Ultiflex Precision Assembly Winder: Pneumatic or electronically controlled back pressure system, allowing for the regulation of cradle pressure from a single point, eliminating the need for numerous mechanical parts and manual intervention found in other models. Electro-magnetic tension device, a reliable unwinding yarn tension control system that can be regulated from the display without manual interference. Double-arm package holder designed to ensure the best package uniformity. Auto-doffing as an optional feature, along with the largest magazine capacity for empty tubes. Reduced footprint, with 10 spindles per section and a 4-ply internal creel capable of holding 230 mm supply cones.
Source: Indian Textile magazine
INTERNATIONAL
Exhibitors at Texworld and Apparel Sourcing Paris have rapidly responded, with a remarkable 75 percent of exhibition space already booked by September. This surge in enthusiasm clearly underlines the truly international aspect of this edition as well as the Asian textile industry’s keen interest in strengthening its connections with European markets. For buyers, this event gains even more strategic importance as it offers a valuable opportunity for contact and exchange with international suppliers of fabrics, materials, and finished products. This interaction is pivotal for shaping and creating their Spring-Summer 2025 collections. The trends presentation and the international conference program are a real asset for a complete experience. Leading fashion sourcing nations will converge in Paris As they do every year, China, India, Türkiye, Korea, along with Indonesia, Pakistan, and Thailand, will all be represented. Major national pavilions, such as the Istanbul Chamber of Commerce (ITO) for Turkish manufacturers and the Korean Federation of Textile Industries (KOFOTI), have confirmed their participation. Additionally, Apparel Sourcing Paris will see a growing number of Hong Kong manufacturers, with six already confirming their attendance. At Texworld Paris, which expects over 700 exhibitors, we’ll witness representation across 13 sectors, with a noticeable increase in knitwear, primarily due to the rise of casual wear in recent years. The same goes for activewear performance textiles, which are now part of fashion collections alongside sportswear.
A new hall layout A notable feature of this February 2024 session is the consolidation of both fairs on two levels in Hall 7 (7.2 and 7.3) at Paris Expo Porte de Versailles. This configuration makes it easier for visitors to locate the specific expertise and product types they seek. The central area will host cross-disciplinary activities and offerings, including the Denim Village and the Elite sector. Trend forums will be distributed across the two levels, showcasing top proposals by sector. The T-Club area will facilitate business exchanges at Messe Frankfurt France events. Last but not least, the convenient proximity to the heart of the French capital ensures easy access for European and international buyers to these textile industry events.
Sustainable Development: Guiding Visitors with Econogy For the past 15 years, the international Messe Frankfurt Group has championed sustainability, guiding trade fair visitors toward manufacturers offering sustainable solutions, and is now focusing on Econogy. This concept, that combines ecology and economic development, has become the framework for the Texpertise Network. Econogy will also play a pivotal role in guiding Texworld Evolution Paris towards sustainable development and structuring the sourcing methods of its sourcing platform. The Econogy Finder, for instance, will allow visitors to access an online directory of suppliers who produce textiles sustainably. Exhibitor stands that meet these criteria will be clearly marked with visible Econogy symbols. The event will feature several conferences on sustainability, giving the floor to certifiers, industry experts, and NGOs to raise awareness of sustainability challenges, present solutions, and share innovative experiences in production and distribution sectors.
Source: Textile world
President of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) Faruque Hassan on Tuesday stressed the importance of enhancing workers' productivity and resource efficiency to promote sustainable growth in Bangladesh's apparel industry. Speaking at a workshop in Dhaka he emphasised the industry's need to balance short-term goals with long-term priorities through innovation, technological advancements, and knowledge-based transitions. The workshop, titled "Sustainable Business Growth of the Apparel Sector of Bangladesh: Improving Workers Productivity and Resource Efficiency," was organised by Solidaridad Network Asia in collaboration with BGMEA. Faruque mentioned the substantial progress Bangladesh has made in improving the well-being of workers, society, and the environment over the past decades. However, he noted that there is still room for improvement in terms of efficiency and competitiveness. He also pointed out the challenges the industry faces as the cost of manufacturing continues to rise each year. "In recent years, the costs of fuel, electricity, and gas have significantly increased, leading to higher transport and utility costs, as well as increased manufacturing expenses," the BGMEA president said. "Ensuring workers' well-being also means enhancing their efficiency through skills training and opportunities, ultimately enabling them to earn a better living," he added. He stressed that increased productivity benefits both factories and workers and has a direct impact on the country's GDP growth. The workshop was also addressed by Tapan Kanti Ghosh, Senior Secretary, Ministry of Commerce, Thijs Woudstra, Deputy Head of Mission, Embassy of the Kingdom of The Netherlands; and Selim Reza Hasan, Country Manager, Solidaridad Network Asia. A presentation on the Reclaiming Sustainability programme was shared by Isaac Gyamfi, Chair of the Partnership Steering Committee, Reclaiming Sustainability. The workshop featured two-panel discussions with industry leaders, experts, and academia. The first panel discussed reskilling and upskilling workers for productivity enhancement, while the second panel explored the need for and the way forward in achieving resource efficiency.
Source: The Financial Express
Diversified global manufacturer Milliken & Company was recognized as one of America’s Best Employers for Veterans 2023, a list compiled by Forbes and Statista. Milliken, included on the list for the first time this year, is one of seven manufacturers recognized. “Our veterans come to work each day demonstrating their commitment to our values and to our people,” shares Halsey Cook, president and CEO of Milliken & Company. “We’re proud of their contributions, and we’re grateful for the skills they bring to the table as part of Team Milliken.” The cohort of America’s Best Employers for Veterans 2023 all exemplify company cultures that are welcoming and supportive of veterans. Nearly 8,500 U.S. veterans, all of whom work at companies employing at least 1,000 people, were surveyed by Statista, and both their direct and indirect recommendations informed the rankings. One of Milliken’s six affinity networks—inclusive groups that associates can join to learn from, engage with and support other associates—focuses on veterans across service branches and nationalities. Milliken’s Veterans Group provides camaraderie and service outlets, networking opportunities, and resources and development to its members. This group is one of many ways Milliken builds a workplace where everyone can bring their authentic selves to work each day. “Milliken touches the lives of many veterans and service men and women—through product innovations and employment opportunities—and that made Milliken a natural fit for me,” shares Brad Johnson, senior director of benefits and retirement and a U.S. Army veteran. “Working for a company with purpose and integrity like Milliken aligns with what I was hoping for in an employer.”
Source: Textile world
