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MARKET WATCH 28 SEPTEMBER, 2016

NATIONAL

 

INTERNATIONAL

 

Textile Raw Material Price 2016-09-27

Item

Price

Unit

Fluctuation

Date

PSF

1014

USD/Ton

0%

9/27/2016

VSF

2535

USD/Ton

0.18%

9/27/2016

ASF

1890

USD/Ton

0%

9/27/2016

Polyester POY

1020

USD/Ton

0.15%

9/27/2016

Nylon FDY

2430

USD/Ton

0.31%

9/27/2016

40D Spandex

4425

USD/Ton

0%

9/27/2016

Nylon DTY

1290

USD/Ton

0%

9/27/2016

Viscose Long Filament

2250

USD/Ton

0.67%

9/27/2016

Polyester DTY

2055

USD/Ton

0%

9/27/2016

Nylon POY

1237.5

USD/Ton

0%

9/27/2016

Acrylic Top 3D

2625

USD/Ton

0%

9/27/2016

Polyester FDY

5628

USD/Ton

0%

9/27/2016

10S OE Cotton Yarn

2008.5

USD/Ton

0%

9/27/2016

32S Cotton Carded Yarn

3225

USD/Ton

0%

9/27/2016

40S Cotton Combed Yarn

3750

USD/Ton

0%

9/27/2016

30S Spun Rayon Yarn

3105

USD/Ton

0%

9/27/2016

32S Polyester Yarn

1680

USD/Ton

0%

9/27/2016

45S T/C Yarn

2610

USD/Ton

0%

9/27/2016

45S Polyester Yarn

3240

USD/Ton

0%

9/27/2016

T/C Yarn 65/35 32S

2370

USD/Ton

0%

9/27/2016

40S Rayon Yarn

1845

USD/Ton

0%

9/27/2016

T/R Yarn 65/35 32S

2250

USD/Ton

0%

9/27/2016

10S Denim Fabric

1.3695

USD/Meter

0%

9/27/2016

32S Twill Fabric

0.837

USD/Meter

0%

9/27/2016

40S Combed Poplin

1.1865

USD/Meter

0%

9/27/2016

30S Rayon Fabric

0.7005

USD/Meter

0%

9/27/2016

45S T/C Fabric

0.669

USD/Meter

0%

9/27/2016

Source: Global Textiles

Note: The above prices are Chinese Price (1 CNY = 0.15000 USD dtd. 27/09/2016)

The prices given above are as quoted from Global Textiles.com.  SRTEPC is not responsible for the correctness of the same.

 

Cotton federation looking at ways to tackle supply shortfall

“It is very premature, but yes, we are in talks with the port officials seeking support for a raw material centre at Colombo port. Such a facility will help the mill sector in Tamil Nadu to import cotton more quickly, be it from West Africa, Australia or even the US,” Srihari Balakrishnan, Managing Director, Sri Kannapiran Mills said, on the sidelines of the 37th Annual General Meeting of the Indian Cotton Federation (ICF). Though the dates have not been finalised yet, the delegation, according to Srihari, would comprise of 4-5 members and looking to travel during October first week. “We are awaiting confirmation from Colombo Port officials.” ICF sources perceive that textile manufacturers in Tamil Nadu would benefit if the proposal comes through.

Earlier, in his presidential address, J Thulasidharan, President, ICF, said the area under cotton in 2016-17 has been estimated to be lower by 10 per cent compared to the current year. “China’s fibre policy and release of old stock might tilt the global cotton demand and supply equation. Further, cotton supply could be tight due to the overall shortfall in acreage. It is therefore necessary to guide farmers on practising Precision Cotton Farming. Unless farmers are reassured of increased yield and better realisation, they will not undertake cotton cultivation. All stakeholders should work towards quality cotton supply,” he added. ICF Vice-President P Nataraj stressed the need for a conducive cotton trade policy. Cottton Scientist V Santhanam, who was co-opted as member, ICF at the 37th AGM of the federation suggested the need for a visit to China to understand the factors for increased productivity. “We should explore and understand,” he reiterated.

SOURCE: The Hindu Business Line

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Indian apparel sector aims to increase global market share

To grab the market share vacated by Chinese apparel manufacturers, India's Clothing Manufacturers' Association of India (CMAI) has signed a memorandum of understanding with China Chamber of Commerce for Import and Export of Textiles (CCCT) to explore potential areas of mutual co-operation for increasing apparel exports from India. India's apparel export stood at $17 billion for the financial year 2015-16. With Rs 5,000 crore package approved to boost the entire apparel sector, the government has set a target for apparel exports at $20 billion as against the industry's pre-package target of $18.75 billion for the current financial year. The textile ministry has also asked the apex industry body the Apparel Exports Promotion Council (AEPC) to create 1 million jobs and achieve $30 billion in three years.

The MoU between India and China assumes significance especially in terms of the latter's reducing focus on labour- and energy - intensive industries to which textiles remain in the forefront. This has resulted into China' reducing its global market share by 3 per centage points in the last 18 months to around 38 per cent now. India, however, is way behind China with around 3.5 per cent of global market share. India's position in the last few years has improved though. "This MoU will benefit both countries when we explore opportunities. While organizing trade fairs, both of us would co-operate in associating new clients, visitors and associated supply chain participants to the forum for the benefit of the apparel trade which will ultimately benefit India's apparel industry," said Rahul Mehta, president, CMAI and International Apparel Federation (IAF), the global representative body of apparel manufacturers. The MoU was signed on the sidelines of 32nd IAF World Fashion Convention India 2016 on Tuesday.

Speaking on the occasion, Ashok Rajani, chairman, AEPC, said, "With our huge targets of capacity expansion, we envisage an investment of $11 billion over the next three years. All apparel machine supplies also have a big opportunity to reach out to Indian entrepreneurs and supply to them. Investment in plant and machinery in India has been incentivized. With the schemes having been just rolled out, about two months back, this is right time to reap the benefits of collaborate with the opportunity called India." IAF estimated India's overall textiles industry including garments, fabrics, technical textiles etc, at $110 billion of which domestic sector contributes $68 billion and exports at $42 billion. By 2021, however, the Indian textiles industry is forecast to double to $220 billion.

Speaking on the significance of online retailing of apparel, Aniruddha Deshmukh, Managing Director and CEO of Mafatlal Industries Ltd, said, "E-retailing is going to be the next growth opportunities in the Indian textiles and apparel sector in the next few years. While Mafatlal does have any plan to enter into e-retailing, the company with Rs 1350 crore of annual turnover estimates higher single digit growth in its sales in the next couple of years." The e-retailing of apparel is going to grow from its lower base. Mafatlal Industries, the No 1 producer of school uniform in India would continue to focus on its B2B segment and also strengthen its 110 retail stores with existing branded shirting and fabric segments. Francesco Marchi, Director General, EURATEX, highlighted the need to initiate dialogue on the free trade agreement (FTA) between India and European Union and the United States. "The Indian government should start negotiations for the FTA with the EU and the UK for the benefit of the Indian apparel sector. It is hard to imagine the success of the FTA without UK, post Brexit. UK continues to be textiles manufacturing hub contributing 29 per cent of the entire apparel trade in the EU. 22 per cent of India's exports to the EU goes through UK," he added.

SOURCE: The Business Standard

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Dutch retailers paying "starvation wages" to Indian textile workers

Dutch fashion retailers are paying "starvation wages" at factories in a major hub for the global garment industry in Karnataka, forcing many workers into crippling debt, a report on Tuesday showed. Workers surveyed at 10 garment factories in and around Bengaluru took home on average 90 euros ($100) a month, and 70 percent were in debt, the report by four non-profit organisations said. The factories were supplying Dutch brands that have "acknowledged the importance of living wages". They included Coolcat, G-Star, The Sting, MEXX Europe, McGregor Fashions, Scotch & Soda, Suitsupply, WE Fashion and C&A. The C&A Foundation partners with the Thomson Reuters Foundation on trafficking and slavery coverage. "Workers cannot properly support their families with this wage," said the report, "Doing Dutch", co-authored by Clean Clothes Campaign, the India Committee of the Netherlands, Asia Floor Wage Alliance and Cividep India. "Food and housing, usually a one-room apartment without a water tap and with a shared toilet outdoors, are the biggest expenses. Almost everyone would like to buy healthier and more varied food, but is unable to do that because of low wages."

Responding to the report, companies have said they were putting procedures in place to overcome the challenges with regard to wages, overtime payment, working hours, creche and hostel facilities for workers. The $40 billion Indian textile and garment industry, much of which operates in the informal sector and is poorly regulated, employs an estimated 45 million workers. The report said there are around 300,000 workers in and around Bengaluru, the capital of Karnataka, and that 80 percent of the workers in the city's 1,200-odd factories are women. A woman worker interviewed in 2015 said she walked an hour to work and an hour back to save on bus fare. "These women are working very hard for a pittance," said Tara Scally, spokeswoman of the Clean Clothes Campaign. The International Labour Organisation defines a living wage as a "basic human right". Last year, the Asia Floor Wage campaign pegged a decent living wage in India at 18,727 rupees ($282) per month. "We expect garment companies to make a concrete plan for a living wage for all workers and to make sure that their procurement price enables the suppliers to pay a living wage," Gerard Oonk, director of the India Committee of the Netherlands, said in a statement.

SOURCE: The Reuters

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Tamil Nadu spinners cut down yarn production

With cotton prices rising to Rs 50,000 per candy (1 candy=365 kgs) in the fag end of the 2015-16 cotton season, many spinning mills in Tami Nadu have cut down on yarn production. The primary reason being cotton yarn prices have not increased in tandem with the hike in raw cotton prices, making managing operations unviable for these spinners. According to a news agency report, these spinners expect yarn prices to grow following the reduction in yarn production, which will lead to a shortage of cotton yarn. Nearly 60 per cent of mills have cut production, either by giving additional days off or reducing the shifts. Additionally, since the new cotton crop is expected to arrive only in the month of November, the mills do not want to exhaust their existing cotton stocks, before the new raw cotton arrivals begin.

SOURCE: Fibre2fashion

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Bihar partnering NIFT to design khadi clothing

Bihar is partnering National Institute of Fashion Technology (NIFT) to design khadi apparels produced in the state and also brand the finer quality of khadi garments. In addition, the state government has allocated Rs 17 crore to set up showrooms to promote the khadi industry in Bihar, all of which is being done to attract attention of the new generation. This was informed by Bihar chief minister Nitish Kumar at a function to mark the 'Rashtriya Charkha Diwas', with the objective to promote the khadi sector in Bihar. According to media reports, Nitish Kumar said proper branding of khadi clothing would help increase demand among consumers and popularise khadi.

SOURCE: Fibre2fashion

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Rightly directed FTAs need of the hour for the Textile Sector: Vinay

India’s exports of bedspreads, in value terms, have seen a phenomenal rise in the last decade. And it’s one of those few export products where China plays catch-up to India. With India expected to further consolidate its leadership position in the coming years, bedspreads appear a safe and snug option for an export business.  When it comes to exports of bedsheets or bedspreads (HS Code: 630419; bedspreads of textile materials, not knitted or crocheted), India has always been a clear leader in exports. In fact, India’s overseas shipments of bedspreads in CY2015 stood at $980.33 million, against the world exports of $1.38 billion during the same period – that’s an impressive 70 percent global share!

India’s dominance in exports of bedspreads can also be gauged from the fact that it’s one of the few export products where China, for a change, plays catch-up to India. [China, the world’s second-biggest exporter of bedspreads, managed to ship just $226.78 million worth of bedspreads in CY2015]. What’s more, India’s exports, in value terms, have almost quadrupled in the last decade to touch about a billion dollars in CY2015 from just $282.52 million in CY2006. That speaks volumes about the export performance of the industry and its importance as a significant foreign exchange earner for the country.

The Dollar Business spoke to Vinay Aggarwal, Director, Kalakriti Exports, on wide-ranging issues affecting the textile sector.

TDB: Please tell us a bit about your business operations.

Vinay Aggarwal (VA): We started our business operation in 1997, initially with jute bags. Thereafter in 2002, we diversified into home furnishing items and it was the year when we started the export of table linen. Initially, we were mainly exporting to USA but now we have included the European market as well. Presently, we export 100 percent of our products.

TDB: How do you see the current market of made up items including top- of-bed items, nationally and globally?

VA: Basically home furnishing items, including top-of-bed items are still not considered as a necessity product and during recession, this would be the last product in which a person would invest in. But then despite this inherent challenge of the sector, I would say, we have moulded ourselves according to the changing times. I believe, throughout our business journey, we have survived many a tough ones and have picked up lessons all along, which we are now using to move forward.

TDB: Of late, China has emerged as a competitive force in your segment, how do you see that?

VA: This is one question which everyone asks. Practically, I would say that we don’t have any competition with China as their strength is different from ours. So while they specialise only in machine-made items, we do both machine and handmade items. However, China does offer much better, in-demand fabrics but then we too have many USPs that separates us from them. I would like to tell you that we are now exporting to China too. This has been made possible because of our excellent hand work and creative designs, which, presently China is lacking in.

TDB: In made up items, how do you see the competition and the working environment?

VA: Competition is manifold in international business. With regards to China, we don’t have much competition as far as handmade items are concerned. With regard to their machine-made products, we don’t have much of a price difference now. The rest of the countries are lagging behind in terms of creative designs and quality of hand works.

Definitely, there is competition with domestic exporters selling to a common market. Though our unit is socially-compliant, but then across the spectrum, we find major exports still coming from the unorganised sector, comprising many suppliers that either do not want to, or pay no attention to aspects such as social compliances etc. We need to bring them into the mainstream. Today, if I tell our employee not to do overtime (which is not legal as per the law) he will not work with us. Hence, labour issues are a big concern for us. I also believe Amended Technology Upgradation Fund Scheme (ATUFS) is a good scheme but its proper implementation holds the key to the sector’s growth. GST will also now help in minimising costs on many fronts.

TDB: What about the availability of raw material for your sector, do you think India is self-reliant on this parameter?

VA: Yes, with regards to availability of raw material, I believe India is self-reliant. However, a lot of technology upgradation in our textile mills is needed – for example in the quality of fabric we use - quality of velvet, or cotton we use. In the case of silk, many of us, looking for better quality, are now actually importing it from China, getting hand work done domestically, and then making them export-ready. Hence, we need to improve the quality of fabrics that we use in the country. The recently-announced Rs.6,000 crore special package for the textile and apparel sector by the Union government can benefit us a lot.

TDB: Are you happy with the export incentives currently provided to players of your sector? What more you wish the government should be doing?

VA: Cost of finance is too high at the moment. Infrastructural bottlenecks, communication issues are hurting us in a big way. The whole process of duty drawbacks is too complex. Generally, post consignments, we forget about all these issues. In short I would say, we don’t want incentives but just wish for a clean, transparent working environment.

TDB: How do you see the Make in India campaign?

VA: Although the policy looks good, but going forward, labour laws, taxation issues could be real challenges to the policy.

TDB: Most of the FTAs that India has signed have not resulted in desired benefits for Indian manufacturers. What is your take on this?

VA: Yes, sadly, this has been the case in the past too. So to overcome such disasters and to boost exports we need to have more number of rightly directed FTAs such as, an agreement with the EU, which I believe is the need of the hour.

SOURCE: The Dollar Business

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GST Council to finalise registration, other rules on September 30

Moving on fast track to meet the April 2017 GST rollout deadline, the tax department today came out with draft rules relating to registration, invoice and payment which will be finalised by the GST Council on Friday. “We intend to have these rules approved by the GST council in its meeting on September 30 so that business systems can be modified by all,” Revenue Secretary Hasmukh Adhia tweeted. The draft rules, on which the Central Board of Excise and Customs (CBEC) has invited comments by Wednesday, come less than a week after the first meeting of the GST Council. “Business community may view them and give quick comments, if any, by 28th night on gst-cbec@gov.in,” Adhia said. The draft rules provide for online registration by residents within three days of submission of application. The non-residents, who will come under the purview of GST, will be required to electronically submit the application for registration at least 5 days prior to the commencement of business and deposit full tax liability in advance. The government aims to implement the new indirect tax regime Goods and Services Tax (GST) from April 1, 2017, and to that effect the GST Council will hold its second meeting on September 30. The meeting would finalise rules for GST. The draft rules also provide that if a tax official fails to take action on registration application within a stipulated time-frame, the application for grant of registration shall be deemed to have been approved. As per the draft norms, the applicant seeking registration will have to submit PAN, mobile number, email address on the common portal or through a facilitation centre. The tax authorities will use PAN, one time password and Aadhaar number to verify the details of the applicant. In case all documents are in order, the tax official will approve GST registration in three working days from the date of submission of application.

SOURCE: The Financial Express

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Tax dept introduces 2 more draft rules; makes monthly returns mandatory under GST

Moving at a fast pace, the tax department on Tuesday came up with two more draft rules and their formats on GST returns and refunds requiring assessees to file monthly returns and specifying procedure for claiming refunds of taxes, interest and fees. The stakeholders have been given time till Wednesday to give their comments on the two draft rules which, along with other rules, will be finalised at the second meeting of the GST Council on September 30.

The Central Board of Excise and Customs (CBEC) on Monday unveiled three draft rules and their formats relating to registration, invoice and payments for public comments. The government aims to implement the new indirect tax regime GST from April 1, 2017. As per the rules for refund, every registered taxable person will be required to furnish a monthly return in specified form (GSTR-3). There is also a provision for electronic furnishing of annual return by every registered taxable person and composition supplier. The rules further said that every taxable person whose aggregate turnover during a financial year exceed Rs 1 crore will be required to submit annually a duly certified audited statement. The draft rules, according to Rajat Mohan, Director- Indirect Taxation, Nangia & Co, "have prescribed the form and manner of submission of quarterly returns by composition supplier, returns by non-resident taxable person, input service distributor, persons required to deduct tax at source and the form and manner of submitting statement of supplies effected through e-commerce." The rules, he added, also provide for matching of input tax credit claim on inward supplies and procedure for output tax liability reduction claim.

As regards the refunds, the rules specified the procedure for claiming refund of any tax, interest, penalty, fees or any other amount under GST. "Where application relates to refund of input tax credit, electronic credit ledger shall be debited by the applicant by an amount equal to the refund so claimed...Refund in case of export of taxable goods or services without payment of tax under bond or letter of undertaking, shall be granted on the basis of a prescribed formula," said Mohan. He further said that as per the rules no refund of input tax credit would be allowed if supplier of goods or services avails drawback or claims rebate of tax paid. The rules also provide for grant of provisional 80% refund to notified exporters and refund to certain persons. It further specified that in respect of supplies made to an special economic zone (SEZ) unit/developer, or supplies regarded as deemed exports, application will have to be filed by said SEZ unit/developer or recipient of deemed export supplies.

SOURCE: The Zee Business

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Industry behind curve to meet GST deadline

The Centre appears to be on the ball in its efforts to meet the target of April 1, 2017, for introducing GST in the country. That is the clear takeaway from the developments in the last few weeks since the passage of the 122nd Constitution Amendment Bill in the Rajya Sabha on August 3. The first meeting of the GST Council last week succeeded in pushing the agenda forward by breaking the deadlock on threshold limit — now set at a generous ₹20 lakh — and settling the issue of dual control over assessees: those with turnover up to ₹1.5 crore per annum will be assessed by the States. What’s more, these decisions were arrived at by consensus, and two more meetings of the Council are scheduled in the next three weeks. Clearly, with the statutory requirements fulfilled, the Centre is setting a hectic pace on the operational front and it is a pleasant change to note that the States are extending their full cooperation. The big decision on rates will be made in the meeting on October 17 and once that is done, the action will shift to Parliament for passage of the GST laws in the winter session.

Even as the Centre goes about its job, business and industry appear to be behind the curve in the efforts to prepare themselves for the new era. They may be in for a shock if they believe that the Government will somehow fall foul of the deadline and extend it. There are several crucial issues for industry to sort out, from the mode and process of filing returns to the impact on pricing decisions and cash flows of businesses. Businesses that are now enjoying sales tax holidays and exemptions are likely to run into cash-flow issues as, under the new dispensation, they would be required to cough up the tax first, and claim refunds later. Internal accounting systems will also have to be reset for the new scheme of claiming tax credits. Of course, pricing strategies cannot be reworked unless the tax rate is nailed down, which will happen, hopefully, at the October meeting.

Meanwhile, the GST Council needs to consider setting up regional or State secretariats as it is neither efficient nor practical for businesses to approach the secretariat in New Delhi for clarification of issues and solving minor problems. The Centre needs to embark on a campaign to explain GST and its impact on citizens as there still appears to be a lot of fear about the unknown animal that will be unleashed from April 1. With rates up to 22-24 per cent being discussed, the apprehension is that items of everyday consumption would become expensive and push up inflation. This is even as policymakers suggest that there will be no inflationary impact of GST and, to the contrary, prices might actually correct. There is a clear information asymmetry between the Centre and the people and it is the job of the former to correct this.

SOURCE: The Hindu Business Line

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India jumps 16 spots on Competitiveness Index

India jumped 16 places for the second year in a row to the 39th rank on the World Economic Forum’s (WEF) Global Competitiveness Index 2016-17. It was ranked 55th in 2015-16. This is the largest gain made by any country on the list. Switzerland was ranked the most competitive country for the eighth consecutive year, followed by Singapore, the United States, the Netherlands and Germany. The rankings measure countries’ performance on three indicators — basic requirements, efficiency enhancers, and innovation and sophistication factor. Performance on these in turn is measured through sub-indicators. “Thanks to improved monetary and fiscal policies, as well as lower oil prices, the Indian economy has stabilised and now boasts the highest growth among G20 countries. Recent reform efforts have concentrated on improving public institutions (up 16), opening the economy to foreign investors and international trade (up four), and increasing transparency in the financial system (up 15),” said the report.

India jumps 16 spots on Competitiveness Index On basic requirements, India jumped from 80th in 2015-16 to 63rd this year, with improvements seen in indicators such as institutions, infrastructure and macroeconomic environment. However, a mild slippage was observed on the health and primary education indicators. On institutions, the country has jumped from 60th rank last year to 42nd, driven largely by improvements in indicators such as diversion of public funds and irregular payments and bribes, efficiency of legal framework in settling disputes, strength of auditing and reporting standards, and protection of minority shareholders. While an improvement on the former is likely to be the result of government initiatives aimed at curbing corruption, the latter probably reflects measures taken on corporate governance and related party transactions by authorities such as the Securities and Exchange Board of India (Sebi). Surprisingly, on reliability of police services, the country moved from 86th in 2015-16 to 53rd in 2016-17.

On infrastructure, the country’s ranking improved from 81st last year to 68th, with progress seen in the overall quality of infrastructure, roads, railways, port and electricity supply. However, despite this, the “Lack of infrastructure (68th) and ICT use (120th) remain bottlenecks. Improvement has been slow in recent years and further investment will be necessary, especially to connect rural areas and make sure they can equally benefit from and contribute to the country’s development,” it added. Interestingly, the WEF report suggests the country has made significant progress on higher education and training. On the quality of education system, it has jumped from 43rd last year to 29th, from 63rd to 44th on quality of math and science education, and from 48th to 30th on extent of staff training. The country has also made rapid progress on prevalence of foreign ownership (from 96th in 2015-16 to 72nd in 2016-17) and on business impact of rules on foreign direct investment or FDI (from 92nd last year to 71st this year). Presumably, this was driven by the government’s initiatives to ease FDI norms. The WEF report also says India has made tremendous progress on labour market efficiency with its ranking improving from 103rd in 2015-16 to 84 in 2016-17. Within this, India has jumped from 86th to 67th rank on cooperation in labour employer relations, 25th to 15th on hiring and firing practices, 47th to 33rd on pay and productivity, and 86th to 66th on reliance on professional management.

Notwithstanding the 16 place jump, the WEF report says “a lot needs to be done. The labour market is segmented between workers protected by rigid regulations and centralised wage determination (112th), especially in the manufacturing sector, and millions of unprotected and informal workers.”

SOURCE: The Business Standard

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ADB maintains India's economic growth at 7.4% for FY17

Asian Development Bank on Tuesday retained its projections for India's economic growth at 7.4 per cent for the current financial year, 0.2 percentage points lower than what was clocked in 2015-16. In its latest Asian Development Outlook (ADO) 2016 update, ADB said India's economy will remain on a strong growth path in FY17, aided by implementation of key structural reforms, robust consumer demand and higher agricultural output, driven by a good monsoon. India's economy grew five-quarter low of 7.1 per cent in the first three months of the current financial year. The Economic Survey had projected the growth in the range of 7.2-7.75 per cent. Even though lower than the previous year's growth, 7.4 per cent means India will be the fastest-growing major economy in the world. "With increasing investment over the coming year, India will remain the fastest-growing major economy in the world," ADB Deputy Chief Economist Juzhong Zhuang said. The growth rate was retained for the full financial year on the strength of improved private consumption after a recently approved hike in wage and pension and expectations of a healthy monsoon lifting rural income. As corporates successfully deleverage and bank reforms boost lending, recovery in private investment will help drive growth to 7.8 per cent in 2017. "Legislation to create a national value-added tax should lift investor confidence, as this accomplished a key step towards a much more integrated and productive economy," it said.

India recently adopted structural reform to attract more foreign direct investment and passed legislation to allow a national tax that will create a more integrated and productive economy, it added. The government intends to implement the goods and services tax from April 1, 2017. The report said South Asia is now developing into Asia's fastest-growing sub-region, driven by solid growth in India. Forecasts in ADO 2016 are retained, with growth seen to slow slightly to 6.9 per cent in 2016 before re-accelerating to 7.3 per cent in 2017. The growth projections for India, the sub-region's largest economy, are similarly unchanged for both years, providing the main resistance to global headwinds.

Developing Asia is expected to maintain its growth pace going into 2017, buoyed by an improving external environment and resilience in the region's two largest economies, the People's Republic of China and India. The report noted that India is also likely to expand its trade in information technology services and witness emergence of other commercial services exports.

SOURCE: The Business Standard

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India may consider dragging Pakistan to WTO on Most Favoured Nation issue

With the tension mounting between the two countries after Uri attack, India may consider the option of dragging Pakistan to WTO over non-extension of the Most Favoured Nation (MFN) status to New Delhi. India granted the MFN status to Pakistan in 1996 but Pakistan is yet to reciprocate to that. The neighbouring country has missed its own deadline of December 2012 for giving India this tag. India, sources said, may look at the option to file a case at the WTO’s dispute settlement mechanism against Pakistan as the neighbour has not yet extended this status to India. However, the decision has to be taken by the political leadership. The option could be discussed in the meeting called by Prime Minister Narendra Modi here on Thursday to review the MFN status given to Pakistan, they added.

As per the global trade norms, member countries of the WTO are required to give non-discriminatory market access as part of the MFN status to each other. Trade experts too said that India has the option to drag Pakistan in the WTO over not extending the MFN status. The Prime Minister has already chaired a review meeting of 56-year-old Indus Water Treaty during which it was decided that India will “exploit to the maximum” water of Pakistan-controlled rivers, including Jhelum, as per the water sharing pact. The bilateral trade between the countries stood at USD 2.61 billion in 2015-16. According to Article XXI of General Agreement on Tariffs and Trade (GATT), a WTO member country can take trade actions for the protection of its essential security interests.

SOURCE: The Financial Express

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Withdrawal of MFN status may hurt Pakistan industry: Experts

Withdrawal of Most Favoured Nation (MFN) status by India is likely to hurt Pakistani industries as it might stop flow of raw materials at competitive prices, experts say. In the wake of the mounting tensions between the two countries, India has decided to review the MFN status given to Pakistan at a meeting called by Prime Minister Narendra Modi here on Thursday. “Pakistans’s industry will squeeze if India decides to withdraw the status. Diplomatically it will be a good step to isolate Pakistan,” international trade expert with Indian Institute of Foreign Trade (IIFT) Rakesh Mohan Joshi said.

In 2015-16, India’s exports to Pakistan stood at USD 2.17 billion, while imports were USD 441 million. Exporters body Federation of Indian Export Organisations (FIEO) said that India mainly exports inputs to Pakistani industry such as basic chemicals and cotton, which is vital for their industry. “Their industry will face issues if India stops these exports. Their cost of manufacturing will go up,” FIEO Director General Ajay Sahai said. However, another expert said withdrawal of the MFN status would be a knee-jerk reaction and trade issues should not be involved in these circumstances. The decisions to review the MFN, which was granted by India unilaterally in 1996, comes in the wake of the Uri attack over which India is weighing options to respond. The MFN status was accorded in 1996 under WTO’s General Agreement on Tariffs and Trade (GATT). Both India and Pakistan are signatories to this which means they have to treat each other and rest of WTO member countries as favoured trading partners. India’s exports to the neighbouring country worked out to 0.83 per cent of the total Indian outward shipments while imports were 0.13 per cent of the total inward shipments.

As per the WTO rules, India can roll back the MFN status from Pakistan. India granted the MFN status to Pakistan in 1996 but Pakistan is yet to reciprocate to that. Pakistan is postponing grant of Non-Discriminatory Market Access (NDMA) or MFN status due to lack of consensus at home. India’s main exports to Pakistan include sugar, cotton, man-made filaments, chemicals, carpets, furniture fresh fruits and vegetables while its imports comprise mineral fuels, precious stones, wooden handicrafts among others.

SOURCE: The Financial Express

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India to invest $2 bln in Sri Lanka in next four years: Nirmala Sitharaman

India will invest up to $2 billion in Sri Lanka over the next four years in a range of sectors including real estate, energy and infrastructure, its Commerce and Industry Minister Nirmala Sitharaman said on Tuesday. India is Sri Lanka’s largest trading partner and the South Asian neighbours are considering a broader trade agreement as President Maithripala Sirisena’s government tilts towards New Delhi after his predecessor pursued a pro-China policy. “In the next two to four years, the total investment interests will rise to $2 billion,” Sitharaman told reporters in Colombo at the end of her visit. “India has investment interests in a wide range of areas.” Her visit comes as China, India’s regional rival, presses ahead with a $1.4 billion real estate project next to Colombo’s main port after the Sirisena government, in power since January 2015, briefly suspended it over suspected irregularities.

SOURCE: The Financial Express

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Next round of ETCA talks between India, Sri Lanka this week

The next round of negotiations between India and Sri Lanka on the Economic and Technology Cooperation Agreement (ETCA) is scheduled to happen this week here. The ETCA is expected to help boost trade and investment between the two countries. During her meeting to the neighbouring country, Commerce and Industry Minister Nirmala Sitharaman met Sri Lankan Minister of Development Strategies and International Trade Malik Samarawickrama and discussed this pact. The leaders expressed satisfaction on the progress of the proposed ETCA, the commerce ministry said in a statement. “It was noted that the second round of negotiations for the ETCA is scheduled to take place in New Delhi on September 29-30,” it said.

Sitharaman’s two-day visit to Sri Lanka ended today. The visit was aimed at enhancing and deepening bilateral trade and investment relations between the countries. Many issues relating to trade, services and investment were highlighted during India-Sri Lanka Business Forum meeting. Further, it said the Indian minister suggested that the meeting of the reconstituted India-Sri Lanka CEO Forum be held at the earliest. It said the visit has emphasised the importance of Sri Lanka as an important trading and investment partner for India and would help in further deepening the existing bilateral relations. In a series of tweets, Sitharaman said she raised the issue of import of arecanut into India. “Sri Lanka no longer allows import of arecanut for value addition and further export,” she said. She also said that Sri Lanka has successfully rolled out emergency ambulance service in its southern and western provinces. Prime Minister Narendra Modi “had announced a grant of USD 7.5 million for 88 ambulances and first year’s operation…India’s GVK operates the service while the ambulances are TATA made,” she tweeted.

SOURCE: The Financial Express

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SASEC countries plan greater economic cooperation

The six member countries of the South Asia Sub-regional Economic Cooperation (SASEC) programme—Bangladesh, Bhutan, India, Maldives, Nepal, and Sri Lanka— released this week, the SASEC Operational Plan (OP) 2016-2025. The SASEC OP is the programme's first comprehensive long-term plan to promote greater economic cooperation among the member countries. Established in 2001 with the Asian Development Bank (ADB) as the secretariat and lead financier, the SASEC programme is a project-based partnership to promote regional prosperity by improving cross-border connectivity, boosting trade among member countries, and strengthening regional economic cooperation. To date, ADB has approved 40 SASEC projects worth almost $7.7 billion in transport, energy, trade facilitation, and information and communications technology.  

Taking regional cooperation to a higher level, the SASEC's plan for the next ten years is to extend physical linkages not only within SASEC, but also with East and Southeast Asia, an official statement said. The SASEC OP promotes the development of economic corridors within and between the member countries. It also identifies regional road and rail links aligned closely with trade routes toward the east. Planned measures to streamline and harmonise trade procedures will cover both land-based and sea-based routes. This will open opportunities for the SASEC countries to participate more actively in regional value chains that are more advanced in Southeast Asia. The energy strategy under the SASEC OP aims to diversify the energy mix in the SASEC countries to cope with the projected increase in demand. The immediate priority is to improve energy infrastructure that will allow countries to access commercial sources of energy and diversify their fuel mix.  The SASEC OP identified over 200 potential transport, trade facilitation and energy projects, which will require over $120 billion in investments for the next five years, out of which 74 projects have been identified in India with an estimated project cost of over $60 billion. Majority of these projects are located in North East or Eastern part of the country. “The Indian government's Act East Policy resonates well with the objectives of the OP and we will work closely with our SASEC neighbours to develop the infrastructure needed to make our region's enterprises more competitive,” said Raj Kumar, joint secretary, Multilateral Institutions Division, Department of Economic Affairs, Ministry of Finance, Government of India.

SOURCE: Fibre2fashion

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Russia mulling e-visas for Indian tourists

Russia is considering the launch of e-visas for Indian tourists and direct flights between Mumbai and Moscow as part of its aggressive measures to woo Indian travellers to the country, famous for its rich cultural heritage, ornate cathedrals and subtropical beaches. “We are planning to start offering e-visas to the Indian tourists to ease travel norms for those visiting our country,” Valery Korvokin, Head of International Department of the Russian Federal Agency for Tourism, told PTI here today on the World Tourism Day. “We are pursuing the e-visa issue with our foreign ministry. We expect a positive development on this important matter in the next few months,” Korvokin said.

Out of the 18 million outbound Indian tourists, nearly 30,000 visit Russia annually. “We are working on increasing the visibility of Russia in Indian media and TV. We are also working with our University officials to formulate Indian tourist friendly measures,” Korvokin said. Also in the offing are direct flights from Mumbai to Moscow and St Petersburg. “A decision on this issue is also expected soon,” he said. The Agency is also planning a certification/recognition course for Indian tour operators, specialising in Russian tours, he said. The Agency’s Deputy Head Sergey Korneev said Russian tourism authorities are also looking at measures like increasing the number of English/Hindi translators for Indian tourists, considering that language is perhaps the biggest impediment for travellers from the sub-continent. “Russia is hosting the 2018 FIFA world cup and can be a big draw for Indian tourists, as football craze is catching on in India,” he said.

During this period, Indian tour operators can plan FIFA special packages, he added. With India’s outbound tourism growing faster than China, the South Asian giant is an obvious target for Russian tourism promoters, said Paresh Navani, managing partner of the Russian Information Centre. “Russia has a lot to offer to Indian tourists, besides the beautiful nature and cultural heritage. Indians should visit Russia and experience the warmth of the Russian ‘chai’ (tea) and Russian people,” Navani said.

SOURCE: The Financial Express

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Global Crude oil price of Indian Basket was US$ 43.85 per bbl on 27.09.2016

The international crude oil price of Indian Basket as computed/published today by Petroleum Planning and Analysis Cell (PPAC) under the Ministry of Petroleum and Natural Gas was US$ 43.85 per barrel (bbl) on 27.09.2016. This was higher than the price of US$ 43.74 per bbl on previous publishing day of 26.09.2016.

In rupee terms, the price of Indian Basket decreased to Rs. 2914.25 per bbl on 27.09.2016 as compared to Rs. 2918.14 per bbl on 26.09.2016. Rupee closed stronger at Rs. 66.46 per US$ on 27.09.2016 as against Rs. 66.71 per US$ on 26.09.2016. The table below gives details in this regard:

Particulars

Unit

Price on September 27, 2016 (Previous trading day i.e. 26.09.2016)

Pricing Fortnight for 16.09.2016

(Aug 30, 2016 to Sep 13, 2016)

Crude Oil (Indian Basket)

($/bbl)

43.85             (43.74)

45.03

(Rs/bbl

2914.25        (2918.14)

3005.30

Exchange Rate

(Rs/$)

66.46              (66.71)

66.74

SOURCE: PIB

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WTO cuts 2016 world trade growth forecast to 1.7%

The World Trade Organization cut its forecast for global trade growth this year by more than a third on Tuesday, reflecting a slowdown in China and falling levels of imports into the United States. The new figure of 1.7 percent, down from the WTO's previous estimate of 2.8 percent in April, marked the first time in 15 years that international commerce was expected to lag the growth of the world economy, the trade body said. The figures should be a wake-up call for governments, WTO Director-General Roberto Azevedo said in the six-monthly trade outlook report. "We need to make sure that this does not translate into misguided policies that could make the situation much worse, not only from the perspective of trade but also for job creation and economic growth and development which are so closely linked to an open trading system," the report quoted him as saying. The data underlined concerns that, after a long period of growth through globalisation and reliance on global trade, governments are increasingly seeking to protect their own industries and promote domestic producers at the expense of foreign competitors.

Although all governments deny protectionism, trade is no longer outpacing economic growth as it used to. Trade has grown 1.5 times faster than gross domestic product over the long term, and twice as fast when globalisation picked up in the 1990s. This year trade will grow only 80 percent as fast as the global economy, the WTO said, the first reversal of globalisation since 2001 and only the second since 1982. "I am absolutely convinced that this is not a moment to turn inward," Azevedo told a WTO conference. The benefits of trade should be shared more widely, he said, with a system that does more to include poor countries, small firms, marginalised groups and entrepreneurs - an apparent nod to anti-globalisation activists who say that secretive trade talks are exclusively aimed at helping big business. Azevedo said four out of five job losses in industrialised countries were not due to competition from cheap imports but to automation and efficiency campaigns that allowed firms to cut their workforce. "This is not a rose garden," he said.

European Trade Commissioner Cecilia Malmstrom, speaking alongside Azevedo, said trade had to be efficient, valuable and transparent. "The time that we locked ourselves in a room and came up with a trade agreement... and only the most devoted nerd really cared, those times are gone. That's not how it works any more." Many people do not feel included in trade policy debates any more, Malmstrom said. "There's a growing anti-globalisation movement. There are fears, questions, and we also see the figures that you presented this morning that absolutely give reason to be concerned." The WTO further said it anticipated slower 2017 trade growth than in its previous forecast, with a rise of 1.8-3.1 percent rather than the 3.6 percent it had estimated in April.

SOURCE: The Economic Times

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Oil slumps as Iran-Saudi discord dims freeze prospects

Iran on Tuesday ruled out an imminent agreement with other major oil producers to freeze output as regional rivalry with Saudi Arabia hindered efforts to reverse a price slump. The new signs of discord sent oil prices sliding again on world markets in the face of a global supply glut that has left a gaping hole in the finances of oil-exporting nations. US benchmark West Texas Intermediate for delivery in November fell 3.5 per cent to $44.31 a barrel in New York trade on Tuesday. Brent North Sea crude for November shed 3.4 per cent to $45.75 a barrel. Opec kingpin Saudi Arabia has so far refused to curb its output at a time when Iran is ramping up production following the lifting of nuclear-related sanctions. Iranian Oil Minister Bijan Zanganeh said today on the eve of an informal Opec meeting in Algeria that the Islamic republic was not yet ready to join a mooted production freeze. "It's not in our agenda to reach an agreement in two days. We need time for more consultation," he told reporters on the sidelines of an energy conference in Algiers. Zanganeh said Iran wanted to increase its daily output to pre-sanctions levels of four million barrels, from the current estimated level of up to 3.8 million.

Saudi Arabia and Iran, the Middle East's foremost Shiite and Sunni Muslim powers, are at odds over an array of issues including the wars in Syria and Yemen. But there were some tentative signs of a narrowing of differences in Algiers, where major non-Opec producer Russia will also join the talks on Wednesday. Zanganeh signalled that an agreement to stabilise oil prices could be struck at a November 30 meeting in Vienna of the Organisation of Petroleum Exporting Countries. And Saudi Oil Minister Khaled al-Faleh said he was optimistic that ministers would find some common ground. "I remain optimistic on the basis of market fundamentals that are moving in the right direction and also on the producers coming to a common view," he said. OPEC secretary-general Mohammed Barkindo, of Nigeria, suggested that the remarks from Iran and other producers were "all part of the consultations". Oil prices have more than halved since mid-2014 as a US shale oil boom prompted a fierce fight with OPEC for market share. A previous bid to freeze output fell apart in Doha in April as Iran refused to take part, saying it needed to return output to pre-sanctions levels.

SOURCE: The Business Standard

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Pakistan Textile industry: rising cost of doing business hinders fresh investment

Rising cost of doing business over last several years has not only stalled fresh investment in the textile industry but also hampered the export growth and turn over. The government should devise a comprehensive strategy to counter the issue in order to accelerate the industrial pace and also to save livelihood of millions of workers. This was stated by the newly-elected Chairman of Pakistan Textile Exporters Association (PTEA) Mian Ajmal Farooq during an annual general meeting of the Association here on Tuesday. The meeting was presided over by the Chairman PTEA Asghar Ali and participated by a large number of exporters. Addressing the members, newly-elected Chairman Mian Ajmal Farooq said that in prevailing economic conditions, rising cost of production is the core issue for textile exporters. Pakistani exporters are under pressure due to prevailing economic financial, industrial crisis in the country as well as persistently high cost of production, heavy burden of taxes and high energy cost which are badly affecting the industrial and trade activities and productivity output.

Expressing concern over continuous downfall in country's exports, he said that Pakistan's share in the world textile and clothing trade of an estimated USD 718 billion has plunged to 1.7 per cent from 2.2 per cent less than a decade ago, with regional rivals capturing a greater market share. Bangladesh's share has increased from 1.9 per cent to 3.3 per cent and India's went from 3.4 per cent to 4.7 per cent during the same period. He emphasised the unity of textile sector to enforce the government to focus on consolidation and strengthening of economy and uplifting the industrial productivity in the country. He appreciated the successful efforts of outgoing team in resolving the issues confronting exports. He assured that PTEA will continue the efforts for viability of textiles in international market.

Earlier Asghar Ali, outgoing Chairman PTEA, presenting his annual report said that despite, big challenges, it was wonderful experience representing as Chairman of the country's premier Association of textile manufacturers and exporters. During the year utmost efforts were made to look after the trade related issues of members by advocating their voice at appropriate forums. He termed the government's initiatives for restoration of zero rating regime for textile exports and payment of long outstanding refunds positive which will definitely help to accelerate industrial pace in the country. He appreciated the government for supply of around 60 mmcfd of RLNG to textile sector in last winter enabling the production cycle remained operative.

Addressing on the occasion, newly-elected vice chairman of the Association Muhammad Naeem assured that no stone will be left unturned for promotion of exports and industry. Exporter's problems will be taken at all possible levels and efforts will be done to get solved the issues. Later, shields and photo albums were presented to the outgoing chairman. A large number of textile exporters attended the meeting.

SOURCE: The Business Recorder

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Oerlikon Manmade Fibers: The Future is Now!

With numerous innovations, the Oerlikon Manmade Fibers segment will present at the ITMA Asia + CITME between October 21 and 25, 2016, at the new National Exhibition Center China (NECC) in Shanghai in hall 2, booth A16 – in line with its leitmotif: ‘From Melt to Yarn, Fibers and Nonwovens’. The primary focus is on the innovative Oerlikon Manmade Fibers Industrie 4.0 system control and customer services solutions. With new features and offerings for the intelligent ‘POC – Plant Operation Center 4.0’ system control software, producers can now maintain a constant overview of all processes – from the polycondensation, spinning and texturing all the way through to downstream further processing procedures. This helps clients increase the productivity of their systems, save energy and deploy resources efficiently. Oerlikon already shows manufacturers how they can optimize the production processes of the future – ‘The Future is Now’.

Using virtual reality presentation, augmented reality solutions with the recently-launched Microsoft HoloLens IT development for ‘predictive maintenance’ concepts and virtual 360-degree tours through spinning plants, visitors to the trade fair will be offered everything that state-of-the-art technology makes possible today. Linked to future-oriented service and automation solutions, Oerlikon wants to prepare its customers for the future of manmade fiber production. The fact that this will ultimately result in improved yarn quality goes without saying for the market leader, along with offering environmentally-compatible and sustainable production processes. Here, the segment will be presenting its e-save initiative for the 12th year in succession and showcasing new recycling solutions – ‘From shredded PET to value add’.

The Oerlikon Manmade Fiber segment comprises two brands – Oerlikon Barmag and Oerlikon Neumag. With its many years of expertise in complex production systems engineering, Oerlikon Barmag – which focuses on CP, POY, FDY, DTY, industrial yarn (IDY) as well as tape and monofilament products and services – alone will be presenting 12 new manmade fiber spinning solutions at the trade fair.

A new addition to the WINGS POY and FDY family

The WINGS POY family now has a further new member, now also including the WINGS POY HD available for processing high titers. With its expanded godet system, the new winder has been designed especially for the requirements of high yarn titers of up to 500den polyester POY. In conjunction with the EvoQuench radial quenching system, microfilament yarns with high titer ranges can now also be manufactured with outstanding properties. Combined with the eAFK texturing machine – also designed for high titers – Oerlikon Barmag therefore offers a total ‘From Melt to Draw Textured Yarn’ concept that produces polyester DTY with up to 450den in accustomed Oerlikon Barmag DTY quality.

WINGS FDY PLUS eco

Since its market launch in 2010, the WINGS concept for FDY processing has successfully established itself on the market with a total of more than 4,000 installed spinning positions across the globe. Also being unveiled at the trade fair are ‘specialists’ for semi-dull and trilobal bright (WINGS FDY SD / WINGS FDY BR) tailored to the specific requirements of customers. We will also showcase at the trade fair the flexible WINGS FDY PLUS and WINGS FDY PLUS eco variant for a broader application window. Depending on the individual requirements, Oerlikon Barmag now offers the perfect, commercially-attractive solution.

The EvoQuench radial quenching system – the core component within the polyester microfiber spinning process – has expanded its process window: EvoQuench is now also newly available for polyamide processing. With this development, Oerlikon Barmag is the first-ever supplier of systems for high-quality polyamide 6 micro-titers both for the POY and the FDY processes.

eAFK HQ – texturing in a new dimension

With the eAFK HQ, Oerlikon Barmag will be presenting the world’s most productive automatic texturing machine at the ITMA Asia + CITME. Furthermore, the new eAFK HQ simultaneously excels as a result of its extremely space-saving construction. With this, customers are able to texture their products in the tried-and-tested quality, assured by Oerlikon Barmag, on a machine with the smallest space requirements in the DTY market. At the same time, they benefit from the 50% increase in productivity offered by the eAFK HQ compared to other texturing machines supplied by competitors.

The eAFK HQ is designed with 12 sections, each with 48 positions. Compared to the eAFK machine – with more than 1,000 successful installations worldwide – a fourth level in the winding unit of the eAFK HQ increases the capacity of the machine to 576 positions – a world record! And all this with simultaneously considerably reduced energy consumption. The newly-developed compact block heater lowers energy costs by reducing the radiated heat loss. With the highest level of precision, the new ATT traverse system ensures excellent package build.

Industrial textiles becoming increasingly popular

For the industrial textiles growth market, Oerlikon Barmag will be unveiling its latest developments for the production of yarns used in airbags, safety belts and tire cord. Here, the focus will, above all, be on polyamide 6 and polyamide 6.6 solutions. However, the very latest process and machine solutions will also be unveiled for polyester applications – for low shrinkage and high tenacity yarns, among others.

Special winders for carbon fibers and aramid

Furthermore, Oerlikon Barmag will be offering information on its winder portfolio for system modernizations and on the numerous special yarn winders for processing high-tenacity yarns, carbon fibers and aramid.

Oerlikon Neumag presents its expanded portfolio

For the first time since the announcement of the takeover of the Trützschler synthetic staple fiber technologies, Oerlikon Neumag will now be presenting its fully-comprehensive staple fiber production plant portfolio as the leading supplier of technologies and plants within the global staple fiber market. Customers benefit from the best technology and process solutions for their specific requirements – for high-quality fibers from a single source.

Two new solutions for meltblown production

For the nonwovens (spunbond, meltblown and airlaid) sector, Oerlikon Neumag will be premiering two further innovations: the new, multifunctional forming table for the Oerlikon Neumag meltblown systems is characterized by its considerably reduced footprint. The resulting shortened wire length reduces maintenance costs. It is horizontally movable, multiply-segmented and offers individually-adjustable suction boxes. This enables extremely flexible formation and hence increased product diversity. The FAUS operating unit for automating meltblown systems ensures an increase in both their productivity and reliability. Five different modes of operation with a total of eight different programs guarantee that future meltblown nonwovens can be manufactured even more efficiently.

BCF solution: energy savings of up to 50%

With its BCF systems, the three-end S+ and the single-end Sytec One, Oerlikon Neumag fully covers all requirements of internationally-active carpet yarn manufacturers. While the S+ is a convincing solution for commercial applications, the Sytec One is particularly good for demanding production processes due to its monofilament character. Both system types can be equipped with the RoTac tangling unit. Depending on the yarn type, the compressed air consumption is reduced by up to 50% compared to conventional tangling units to ensure energy-efficient production.

SOURCE: The Textile World

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Swedish researchers develop new circular textiles process

A partnership between government owned Fouriertransform and private sector company Girincubator, is building the world's first production line for textile pulp from recycled textiles in Sweden. The new patented process named Re:newcell, will drastically reduce the environmental impact from the textile industry by recycling cellulosic based textiles. The technology originates from research and development by Prof. Mikael Lindström, Prof. Gunnar Henriksson and Dr. Christofer Lindgren of KTH in Stockholm. The recycling process will also reduce transport distances, allow more land for food production and reduce waste. The Re:newcell technology represents a potentially important future circular solution to responsibly manage the challenge to meet the growing world demand for cotton textiles, while aiming to create a modern textile industry with resource efficient processes and materials. (AR)

SOURCE: Fibre2fashion

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Advanced Weaving Technologies for Innovative Products

Technological development in the production of textile surfaces has enabled the manufacture of a growing number of automobile components based on technical textiles. These components include body parts as well as interior trim parts such as floor mats, seat covers, ceiling panels and dashboards. In aircraft construction, it is now standard practice that fuselages — or nearly entire aircraft bodies — are built with the aid of industrial textiles. Highly versatile fabrics for such applications have been created through the application of significant know-how by weavers and their machinery suppliers — both of whom invest heavily in technical advancements. Research and development continues to be intensified in the textile manufacturing industry throughout the entire production chain and supported by manufacturers and specific training programs offered by textile universities. Today, the list of potential applications for textile products can be almost infinitely extended.

Regarding composite materials, a significant step toward serial production was shown by multiple exhibitors at this year’s JEC trade shows in Europe and the United States. But in terms of more complex composites such as 3-D multilayer weaves and spacer fabrics, product engineers in all industries — including automotive, building construction, leisure, nautical and aeronautic — are striving to identify precise areas of application in order to merge the advanced weaving possibilities with their needs in terms of technical requirements and woven components. Thus, product designers must understand the possibilities and special advantages offered by latest weaving machines, such as those in the product range of Switzerland-based Stäubli International AG. These machines offer a wide range of capabilities, such as freedom in design and format, fail-safe operation, drapability, precise definition of the elasticity of the fabric, weaves with reinforcement in certain areas over the weaving width, supporting the integration of the fabric in any component, and precise and gentle yarn treatment — the basis for perfect quality in the final product. Furthermore, advanced weaving technologies can shorten workflows, making for more economical production of the fabric and the final product.

3-D Textiles In A Wide Range Of Formats

In recent years, a new type of technical multilayer fabric — so-called 3D textiles — has appeared on the market. Finished products incorporating these textiles are used in applications with increasingly stringent mechanical requirements. One specific example is the aerospace industry, where traceability and reproducibility are central aspects of product specifications. Critical in the production of such industrial textiles is the ability to precisely control the arrangement of the warp threads within the shed of the various layers. This precise control is perfectly supported by Stäubli’s UNIVAL 100 — a unique servo-driven single-end control jacquard machine. The warp-thread control supported by servo-driven individual actuators, allows the production of a great variety of technical textiles and 3-D multilayer fabrics. Depending on the configuration desired, the unit can be fitted with anywhere from 512 to 15,360 actuators in various designs.

Modern Airbag Manufacturing Methods

The latest jacquard weaving technology has made it possible to manufacture complex airbag structures with woven seams. These one-piece woven (OPW) airbags give designers great flexibility in creating patterns and designs. They also reduce the number of production steps, thereby reducing production time. Side-curtain airbags, activated by a lateral collision, are shaped according to the interior contour of the particular car they are fitted in. Their shape and structure are created at the weaving stage. As a result, no subsequent sewing operation is required. To effectively protect passengers in a rollover, OPW side-curtain airbags must remain inflated for several seconds. This is best accomplished by using a sealed cushion with woven seams. OPW airbags are woven on modern high-speed jacquard weaving machines. The warp material, the variety of fabric patterns, and the importance of precisely shaped airbags require the use of a robust and reliable jacquard machine. For maximum flexibility in the creation and design of airbags, weavers require a high number of hooks, which makes control of each individual warp end possible. The extra-reinforced drive elements and the rigid structure of Stäubli’s LXL jacquard machine — available in formats from 6,144 hooks to 18,432 hooks — are ideal for weaving very high-load fabrics such as airbags. The machine’s lifting mechanism ensures accurate shed geometry and vibration-free operation even at high speeds.

At the heart of the LXL are MX modules, serving as the link between the lifting mechanism and the harness. For each weft insertion, each hook of the modules can be positioned either up or down, corresponding to the individual pattern required for each type of airbag and adapting to the complexity of the design. Each hook is driven independently, thanks to the operator-friendly JC7 controller in which all weaving data are stored and then transmitted to the jacquard modules, pick by pick. All data can easily be transferred to and from the jacquard controller via USB stick or network.

Delicate Automated Weaving Preparation

Filtration fabrics are among the technical textiles upon which users place the highest demands. Filter fabrics are used in process filtration, silk screening, as filter components, in medical applications and also in architecture. Ultrafine fabrics increasingly are used in the high-tech field of smart textiles. One thing is common to all these application areas: Precision fabrics are required — and this calls for customer-specific solutions. Highly specialized weaving mills possess the necessary know-how. These mills are not just weavers, but can respond to the individual needs of the application technology and can ensure on-time delivery of a specified end product made using the finest yarns. But before the yarn can be woven, the warp must be drawn into the weaving harness. Warps can measure up to 400 centimeters in width, comprising tens of thousands of threads — sometimes in numbers approaching 100,000 threads.

To streamline the drawing-in process, Stäubli offers automatic drawing-in machines that can handle up to 200 ends per minute. Here, the extreme yarn count of sometimes less than 7 denier, or 32 microns, places extremely high demands on the drop wires, heddle, reed, and every other element that comes into contact with the threads. State-of-the-art image processing makes it possible to flawlessly separate individual threads from a dense sheet of warp threads featuring up to 200 threads per centimeter. Programmable repeat control ensures correct reed dent and drawing in to harness frames, thereby ensuring the specified fabric properties. Stäubli’s automatic drawing-in machines not only handle the finest threads very carefully, but also can handle different types of threads in the same warp layer. Even abrasive yarns such as Kevlar® or fiberglass can be processed, thanks to specially coated thread-handling elements. The SAFIR S80 can even work from two stacked warp beams — up to four different thread layers and materials including S- and Z-twisted yarns. As the technical and quality requirements for technical textiles and composites grow, machinery manufacturers will continue to support the industry with ever-increasingly sophisticated machinery and technologies.

SOURCE: The Textile World

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