INTERNATIONAL
Minister of Textiles Smriti Irani in conversation with the Editorial Director of the New Indian Express Prabhu Chawla at Devi awards 2016 in Delhi. She talks about steps taken to improve conditions of weavers in country and new initiatives for textiles industry.
Your journey from TV actor to an able administrator?
One needs to recognize that it is very difficult to find women who are very blunt about their success. I see nowadays people try to gently put in words which might not be very patriarchly offensive. I am proud to be housewife but people say that to for it to be more acceptable we make the term homemaker. I am proud to say that I am part of administration. Honestly, ask any women she’s doing close quarter battles every day, the difficulty is that you are not battling enemies but your own people not strangers. There is a confidence that whatever may be the challenge, we will succeed.
Whom are you having close battles with?
When are we trying to ridicule, when I say that women are fighting certain battles at close quarters it is to define stories of successful women, it is far easier to do it in a family where almost every member is educated, I am talking today as women and not talking as a minister. If this is a stage to celebrate female achiever, I celebrate very women who is fighting that battle but not getting award for it. I think today amongst us those women who are fighting these battles and yet keeping their families together, keeping their dreams alive are genuinely big heroes.
Margret Thatcher (former British PM) had said any women who understand the challenge of running a home is very close to understanding the challenges of running either a business or for that matter administration. I think if it resonates with Thatcher all the way upto India, they say that there are certain battles you fight only because of your gender.
What you think Indian women can do to make our Indian brands famous?
If I talk about textile as an economic sector then 70-75 percent of people employed in the sector are women. As a market the handcrafted legacy of India is something which actually cannot be measured in term of how rich its’ value will be pepped at an international arena. So we are quite blessed that we have a textile legacy, craft legacy in the country which many of us enjoy.
You ask any lady who is part of textile sector or a man for that matter, when it comes to clothing, let’s say in France today there will be colour forecast for the year 2017-18 but no one would dare forecast a colour for this country because we enjoy our colours on our own; we enjoy the weaves and we enjoy the choices we make.
What can you do for the sector?
There is a much we have done from ensuring that yarn our weavers get the supply was only retained to certain offices. Nobody in this age of technology could actually empower the weaver to know that how the subsidized yarn supply will reach them.
I am launching e-dhaga Monday (December 19) , which put the entire yarn supply for all weavers through an app in three languages in next two-three weeks. One of the major challenges weavers face is that they cannot afford new looms. For the first time 90 percent of the cost of loom will be borne by the government. Given the vibrancy of the sector, I not only have the challenge but also the opportunity to set lot of historical wrongs right.
What is the difference between two ministries you handled HRD before and Textile now?
I think that I never started wanting to prove anything to anybody. But I was just there to do my job which I did and when you do your job to proving anything then you do great disservice to responsibility that is being given to you. I remember walking into an IIT Council meeting and I asked why it doesn’t have a single women. I told them that I am here as virtue of my office and they told me there are not many women in technology who are part of IIT Council. I told them we have Tessy Thomas and then I inducted two women in the IIT Council. As a woman, what broke my heart was when I called Tessy Thomas and I said ma’am would you accept the position and she said you thought of me and I said why not you have done so much for the country.
Why women are not trusted with important posts?
Textile is an economic portfolios, commerce minister is also an important minister and equally the minister of external affairs minister, and these ministries are handled by women too.
SOURCE: The New Indian Express
The Government has approved the "Amended Technology Upgradation Fund Scheme (A-TUFS)" in place of Revised Restructured Technology Upgradation Fund Scheme (RRTUFS) for technology up-gradation of the textile industry with one time capital subsidy for eligible bench-marked machinery for a period of seven years from 2015-16 to 2021-22. This was informed by the Union Textiles Minister, Smriti Zubin Irani in a written reply to a Rajya Sabha Question on Friday. Ministry has also notified the Scheme for Production and Employment Linked Support for Garmenting Units (SPELSGU) under ATUFS to incentivise production and employment generation in the garment sector vide Resolution dated 25.07.2016. The additional incentive of 10% will be provided to the garmenting units which would be availing the 15% Capital In1vestment Subsidy (CIS) under ATUFS for the installation of eligible benchmarked machinery after a period of 3 years. The cap on capital investment subsidy for the eligible machinery in the garmenting units has therefore been enhanced from Rs. 30 crore which was the cap under ATUFS, to Rs. 50 crore. This additional subsidy of 10% will be on achievement of the projected production and employment generation, as stated by the unit in its Detailed Project Report (DPR).
An allocation of Rs. 17,822 crore has been approved for seven years to meet the committed liabilities of Rs. 12,671 crore and Rs. 5151 crore for new cases under ATUFS. Budget provision for the financial year 2016-17 is Rs. 1830 crore. However, there is no specific budget provision for any particular segment, including Handloom sector since the scheme is demand driven. In another reply the minister informed about the measures taken by the government to provide relief to powerloom industry. Immediately after the demonetisation initiative, a quick survey of Powerloom units was undertaken in major Powerloom clusters to assess the impact on the decentralised Powerloom Sector. To address the issues of shortage of new currency, Government has initiated immediate action to enable cashless transactions for payment of wages in the textile sector. A mission-mode campaign has been launched to promote digital payments and opening of bank accounts for workers by organising a large number of camps in various textile clusters. Senior Officers were deputed to clusters to oversee the holding of camps in association with the banking sector. Industry Associations and Councils have also been advised to promote digital payments for enabling cashless transactions.
SOURCE: The SME Times
The government's ambitious textile package, aimed at boosting employment and improving investment flows is expected to reap benefits later than earlier expected. The Rs 6,000-crore package, announced by the government in July and notified in September, is now expected to kickstart production and employment much later than earlier estimated, manufacturers say. On the other hand, senior officials from the Textile Ministry said, under conditions of anonymity, that they did not have any time estimates for the same. At the same time, the recent Cabinet decision to widen the package beyond apparel manufacturing to cover 'made ups' or home furnishings has its root in the uncertainty.
Arguing that it's too early to look for benefits accorded by the package, Development Commissioner (Handlooms) said, "We need to wait for a few months more for the results to become clearer." Originally envisaged for the apparel manufacturing sector, the package has been slow to hit the ground with manufacturers blaming anaemic global demand as well as low investment in the sector. The bulk of the planned capital outlay, an estimated Rs 5,500 crore is expected to be spent on an additional five per cent duty drawback given for garments. Duty drawback is refund of duties on imported inputs for export items. The government hopes it will lead to a cumulative increase of exports up to $30 billion. However, one of the major factors expected to boost hiring - increased government funding for provident funds of new employees - has not started. The government currently bears 8.33 per cent of the employer's contribution. The textile ministry will provide an additional 3.67 per cent amounting to Rs 1,170 crore for first three years for every employee. "Investments will pick in only when global conditions become conducive and demand picks up in both the domestic as well as the major foreign markets - the US and Europe," Chairman of Confederation of Indian Textile Industry Naisadh Parikh said. The manufacturing cycles in the garment sector are also out of sync with the new package. For apparel manufacturers, the festive season beginning August is the biggest draw for which manufacturing has ended by July.
On the other hand, hiring by firms, originally expected to pick up by October-January, when exporters aimed to meet demand from the North American and European markets have been stopped by sluggish demand in global markets. Crucially, industry bodies predict low demand plaguing the sector over the next few months due to global uncertainties such as Brexit and the ascendancy of Donald Trump to the US Presidency. The estimates are in tune with multilateral agencies like the World Bank and the International Monetary Fund cutting projected rates of global trade growth. Export of readymade textile goods of all categories fell by more than 2 per cent in November. While India's domestic textile market is large, the export business exceeds that. But on the international front, key competitor nations like Bangladesh and Vietnam continue to corner a greater share of key markets. Made ups, especially products such as curtain, cushions and towels are being bet on that note as they command a larger share of the import market in developed nations as compared to apparels. The market share is nearly 50 per cent for the United States. "We are waiting for the notification to come within the next few days for the made ups sub sector." Texprocil Executive Director Siddhartha Rajagopal said. However, industry insiders said that no additional funds being allocated remains a problem.
SOURCE: The Business Standard
The Andhra Pradesh Cabinet cleared a proposal in which land allotments cleared were 62.18 acres at Mylavaram in Kadapa district to the Handlooms and Textiles Department for the setting up of a textile park. Around 21 acres at Serikolam village in Parigi Mandal of Anantapur district for the establishment of an industrial park and a multi-product SEZ at the rate of Rs.3 lakh per acre and 44.78 acres for a Mega Food Park at Settigunta village in Railway Koduru Mandal of Kadapa district at Rs.9.50 lakh per acre. In addition, 75 acres had been allotted for expanding the Visakhapatnam Special Economic Zone at Pudimadaka (Rs.10 lakh per acre) and Duppituru villages in Atchutapuram Mandal (Rs.12 lakh per acre) and 61.56 acres in R.Anantapuram village in Madakasira Mandal of Anantapur district (Rs. 90,000 per acre) for establishing an MSME Park. The proposal is basically to establish Special Purpose Vehicles (SPV) for implementing State-sponsored Smart Cities Scheme in Anantapur, Eluru, Kurnool, Ongole and Srikakulam as per the guidelines of the Central government’s Smart Cities Mission. The Cabinet also resolved to set up an SPV called ‘Guntur/Vijayawada Urban Infrastructure Development Corporation Limited’ for the two cities. he Cabinet met at the Interim Government Complex at Velagapudi in Guntur district.
Other important decisions were development of a multi-purpose recreation and commercial centre as part of the Vijayawada City Square project in the public-private partnership mode at Swaraj Maidan and its surroundings spanning 27.5 acres. The detailed project report would be prepared under the aegis of a Cabinet subcommittee. A 35 per cent hike in the wages of the workers of the Society for Elimination of Rural Poverty and an extra 10 per cent performance-linked incentive benefiting 5,038 Velugu workers. Another decision was to move a Bill in the Assembly for the establishment of a Tourism and Culture Board instead of forming it through an ordinance.
SOURCE: Yarns&Fibers
Continuing its effort to make Manipur one of the best state in India and abroad in the field of handloom and textiles, State government is setting up 9 Indudustrial Estates in 9 districts under the financial assistance of Ministry of Micro, Small and Medium Enterprises (MSME) and the NEC. The Takyel Industrial Estate, Construction of Kuraopokpi and Tera Urak Industrial Estates is being upgraded at a total cost of Rs 5859.72.
Chief Minister O. Ibobi Singh on 24th November 2016, inaugurated the Industrial Estate at Tera Urak. And on 25th November 2016, Chief Minister O. Ibobi Singh inaugurated newly constructed industrial estate at Kuraopokpi, Thoubal district. On 8th April 2016 Union MSME Minister Kalraj Mishra laid foundation stones for construction of one industrial estate each at Ukhrul, Chura-chandpur and Chandel. The industrial estates has been financed by Ministry of Micro, Small and Medium Enterprises. The ministry has sanctioned Rs 949.19 lakh for construction of Industrial Estates in Churachandpur, Rs 906.55 lakh in Chandel and Rs 949.19 lakh in Ukhrul district.
The foundation stones were laid together at the Expo Hall, Lamboi Khongnang- khong. During the function foundation stone for one Livelihood Business Incu-bation (LBI) Centre in nine districts was also laid. The 9 LBIs is going to play a crucial role in Make in Manipur initiative. Under ASPIRE Scheme launched by the Centre,22 Livelihood Business Incubators (LBIs) has been sanctioned. The Department of Commerce and Industries is continuing its effort to provide welfare schemes for the Craft Artisans. Incentives/State awards were given to 200 outstanding handicrafts Artisans and 680 Individual ex-trainee handicrafts artisans were provided financial assistance in 2016.
On 26th November 2015 Panthoibi Arcade was inaugurated by Chief Minister, Shri O. Ibobi Singh. The arcade covers area of 1451.60 Sqm with 20 shops, one exhibition and training hall. Encouraging the weavers for their talent and dedication 11 weavers received different awards namely, National Award, Merit Award and Sant Kabir Award. Acknowledging that Handloom and Textile sector needs upgra-dation, in 2014 Poweloom and Allied Service centre was inaugurated at Industrail Estate, Takyelpat by Chief Minister and in 2015 Apparel and Garment making Centre along with a Powerloom Estate was set up under NERTPS at lamboi Khong-nangkhong, Imphal West.
Handloom is one of the most important and fast growing cottage industry in Manipur. The State government has been giving emphasis for the promotion of socio-economic conditions of the handloom weavers and working for the harmonious growth of Handloom industry. Manipur has 2.04 lakh handloom workers which is 5.30 per cent share in India. There are 1.90 lakh looms which is 8.02 percent share in India which is the highest concentration of weavers and highest concentration on all possession of loom in the country.
During the past 15 years, State Government has taken up many schemes for the weavers and handloom sector. Between 2002-2007 under Deen Dayal Hathkar- gha Protsahan Yojana (DDHPY) 18,272 weavers were given training and 14,497 weavers were given Skill Upgradation (Training). In 2014, under Integrated Skill Development Scheme, 11,550 weavers were given training.
To empower the weavers of the State between 2002-2014 Equipment grant of Loom, jacquard, Dobby and acessiories under DDHPY & IHDS to the tune of Rs 866.88 lakh were given to 28,412 weavers. 17,042 Handloom workshed under Workshed Scheme, IHDS and North Eastern Region Textile Promotion Scheme were given between 2003-2016. To give the weavers easy access of yarn, 117 yarn depots were opened under IHDS and NERTPS between 2007-2015. Under IHDS and NERTPS, 166 unemployed youths were given employment between 2007-2016. Financing has always been an issue for the weavers of the State. To facilitate weavers easy access to finance, 1641 cooperative societies and 4 banks were opened between 2012-2014 under RRRP.
SOURCE: Yarns&Fibers
The textile industry has expressed solidarity with the Centre’s goal to promote India as a cashless economy. Supporting the decision, representatives of the textile industry across the country are encouraging the workers to open bank accounts. As a result, salary payment will be done either through cheque or directly into their bank account. A majority of the workforce has already opened bank accounts, while others are in the process, said the representatives of the textile industry. “The move to go digital is a good initiative by the government. However, it will take time for the workers to get accustomed to the new process. In Tamil Nadu, more than 60 per cent of the workers associated with the spinning industry already have bank account,” Prabhu Damodaran, secretary of Indian Texpreneurs Federation told Fibre2Fashion.
Welcoming the move, he added, “The workers are putting in efforts to understand and learn the functioning of banking and digital system. We have also been organising demonstration programmes for the workers.” “It will not be feasible for the workers to travel far to withdraw cash as majority of the textile industries are located on the outskirts, so we will be urging the government to install ATM kiosks in the premises itself,” said Damodaran. “Digitisation of payments will help in maintaining transparency. We are still in the course of opening bank accounts of the textile workers. Since many workers do not have a valid identity proof, the process is getting delayed. We are also helping the workers to download digital payment transfer applications on their cell phones,” said Jitendra Vakharia, president of Federation of South Gujarat Textile Processing Association. “This measure by the government will not only help in curbing corruption but will also ensure that the workers are getting their dues. It will also increase the scope of investment. They can withdraw money directly from the bank or from ATM,” said Dilip Patel, president of All Gujarat Ginners’ Association.
SOURCE: Fibre2fashion
For the third time in a row, Arvind Limited, leading fashion and lifestyle company, bagged the top rank award in energy conservation and efficiency during the National Energy Conservation Awards 2016 organised by the bureau of energy efficiency (BEE), Union ministry of power. The ceremony was held on December 14, India’s National Energy Conservation Day. The Top Rank Award recognises an industrial unit that wins the first prize for three consecutive years, and Arvind is the only textile conglomerate to reach the milestone. Competing against 43 players, Arvind clinched the first position by displaying consistent efforts towards energy conservation at its Santej plant in Ahmedabad, Gujarat.
As compared to financial year 2015-16, Arvind was able to further reduce specific consumption in thermal energy by nearly 12 per cent, besides achieving 12 per cent reduction in specific electrical energy consumption. Arvind has also installed 1.30 MW roof-top solar power generation at the Santej plant – the largest of its kind in the Indian textiles industry. “At Arvind, improving our plant’s energy efficiency has always been a focus, and we continue to invest in new technologies for sustained energy conservation. This award means a lot to the team at Arvind and we appreciate Government of India’s recognition of our plant as the most energy efficient textile unit in India for the third consecutive year,” said Susheel Kaul, CEO - lifestyle fabrics (shirting, khaki & knitwear) at Arvind. “We were able to achieve power and thermal savings through various innovations, new technologies, continuous monitoring and all our efforts have paid off. We introduced various initiatives in our plant to conserve energy, such as mechanical vapour recompression for evaporation, polymeric multi-effect evaporation, efficient pumps, artic master on chillers, LEDs, use of renewable energy, such as day-light sheets and natural exhaust and gravity ventilations in production halls,” said Harvinder Rathee, head engineering - lifestyle fabrics (shirting, khaki & knitwear). The award was presented by Piyush Goyal, Union minister of state, with Independent charge for power, coal, new and renewable energy, to Kaul.
SOURCE:Fibre2fashion
Nusli Wadia's public jousting with old friend Ratan Tata is making headlines these days, but away from the glare, his 137-year-old flagship company, Bombay DyeingBSE -0.86 % & Manufacturing Co, is fighting another battle. One of the oldest textile businesses in India, Bombay Dyeing is slowly putting in place the building blocks to revive its bread-and-butter home textile business. "We are reinventing," Nagesh Rajanna, its CEO for the retail segment, told ET in an interview, in one of the few media interactions he has had until now. "Investments are being lined up."
To be sure, the road to the reinvention started more than a decade ago, when the company decided to exit textile manufacturing. Competition from cheap imports from China and the unorganised sector had rendered its factories unviable. The company also dabbled in apparel, before exiting the segment. What Bombay Dyeing aims to do now is to rev-up the loss making flagship textile business by investing in the brand, expanding store network, growing product portfolio and tying up with international designers. Manufacturing will be outsourced. From now till 2020, the Wadia group owned company plans to invest more than Rs 100 crore in the brand, double its multibrand outlets to 10,000, more than double its franchise stores to 500 and introduce three to four new products every year, Rajanna said. .. These measures, he said, will help the segment more than treble its revenue to Rs 1,000 crore by fiscal 2020 from Rs 305 crore last year. The retail or textile segment currently contributes 17% to the company's overall revenue. That chunk, Rajanna said, will expand to 33% by fiscal 2020.
To rebuild its textile business, the company went on an aggressive hiring spree. In the past six-to-nine months, Rajanna has got a new team to aid this makeover. Never before has Bombay Dyeing's textile business done a complete revamp of its leadership team. Michael Nadar, formerly an executive at consumer electronics major Samsung, is the head of marketing. Swati Singh, who has come from the Future Group, is head of consumer care. The head of finance, Ganesh Ramachandran, came from Bharti Airtel, while the products head, Alok Singh, and the chief of quality control, Suresh Chinnaswamy, are from Wal-Mart.
With its manufacturing plants divested, sourcing is important and Amar Ashar was hired from Accenture for leading the sourcing vertical. Vinita Adhikari, with 16-plus years of experience at Raymond, is leading product development and design functions. Neha Sethi, the head of product development and design for modern retail, was hired from Trent. Rajanna, too, is a recent recruit, having joined the company in early 2016. He has previously worked at senior positions in businesses as diverse as Reliance Communications, Future Generali and PepsiCo. For Bombay Dyeing, one of the oldest companies — it was established in 1879 — to go on an aggressive hiring spree shows the serious effort to attempt a makeover with a young team at the helm.
SHIFTING FOCUS
The Wadia Group, started in 1736 as a marine construction company, went in for several iterations and its first business diversification was by setting up Bombay Dyeing. The group came to its own when it bought biscuit maker Britannia, an acquisition that took time to complete. It went through several ups and downs, but is now the group's most valuable company. In 2005, the group launched Go Air, a budget carrier which is consistently profitable in an industry that is notorious for losing money. The group also has interests in real estate, consumer products, plantations, chemicals and healthcare. The brand Bombay Dyeing was for many years symbolic of classy attire and dressing in India's collective imagination. But as the focus shifted to real estate, aviation and bakery products, the old textile businesses lost ground to more nimble entrepreneurs and cheap imports.
Emerging strongly even as the old guard faded away were companies such as Welspun, Trident and Portico that have suddenly come to the fore in home textiles. In 2014, Mukesh Ambani's Reliance IndustriesBSE 0.32 % sold its textile brand, Vimal, to a joint venture with Chinese partner Shandong Ruyi Science & Technology Group holding a 49% stake. At one point, Reliance founder, the late Dhirubhai Ambani, and Wadia sparred, as they tried to carve their legacy in the textile segment in India in the 1980s. Another tussle he had was with Kolkata based jute baron Arun Bajoria, who crept in and almost got a foot on the door — he quietly acquired an about 14% stake in the company, completely blindsiding the Wadias — before the doughty fighter Wadia showed him the door. Unlike Welspun and Trident, BombayDyeing will focus on the domestic retail market for now.
NOT AN EASY TASK
Arvind Singhal, Chairman of Technopak Advisors, a management consulting firm, said opportunities in the branded bed and bath segment in India is poised to grow. "Indian customers are not spending enough money in this segment. While they are spending more money on clothing, much more money on footwear, but the bed and bath category is still a category where people don't spend much," he said. "But that will change." People will become more conscious of their home decor. So opportunity for bed and bath category is good news for Bombay Dyeing. What will work for Bombay Dyeing is the limited competition in the organised market. "There's Welspun, Trident and Portico. No other significant player. So brand wise the market is not saturated," Singhal said. However, Singhal who's tracked Bombay Dyeing closely, said the company has had several makeovers in the past, but those had not worked.
While Bombay Dyeing franchises were pioneers to set up exclusive outlets in the 1960s, it requires a different mindset to work side-by-side with modern retail, he added. What's more, Bombay Dyeing's retail segment hasn't been on sound financial footing. It currently has three business segments: retail/textile, polyester and real estate. In the last financial year, a Rs 278 crore profit in the real estate segment offset a Rs 44 crore loss in its other two businesses. Analysts began to call Bombay Dyeing a real estate stock rather than a textile stock. Rajanna said the transformation of the textile business has "been work in progress for a while now." The aim "is to reach millennials" with a change in product portfolio, wider reach and a change in the look and feel of the brand. The company has also taken to outsourcing the entire merchandise in order to give itself flexibility in its production and products, he added.
That is, however, easier said than done. Bombay Dyeing retail primarily concentrates on the home textile segment which constitutes bed and bath linen. The organised industry in this business is worth Rs 1,000 crore but the unorganised players are worth more than Rs 45,000 crore, said Rajanna. Bed and bath linen have not become a part of the millenial's lifestyle yet in India, but Rajanna is betting on the segment growing as the demographics in India will play to their advantage. Bombay Dyeing will, however, hedge its bets by being present in all price categories. This strategy may not enthuse brand zealots who would like to Bombay Dyeing to maintain its premium positioning. Clearly, Rajanna and his team are trying to convert customers from the unorganised market to its fold. To woo them, Rajanna said, his company will have products from Rs 799 onwards in the bed linen category and Rs 199 in the bath linen segment. Singhal of Technopak is however not sure whether this strategy will work. It can confuse customers if they look at both mass segment and premium segments, he said.
SOURCE: The Economic Times
A parliamentary panel has suggested that interest rates should be brought down to help exporters which are facing problems in global markets. The Department Related Parliamentary Standing Committee on Commerce has appreciated the various products offered by banks to facilitate a robust export credit framework "but it also strongly feels that the rate of interest on such credit may be brought down". It also said that the banks must ensure regular exporters meet and have tie-up with various credit information bureaus to obtain information on the overseas parties for the benefit of export business customers. The committee said that EXIM Bank should reach hinterland areas so that export infrastructure may be created giving a boost to exports from those areas. To reduce transactions cost, it said there are lots of difficulties for completion of paperwork by traders at the Land Customs Station.
The local traders still lag behind in their marketing capabilities, it said adding "proper training and guidance in these areas need to be given to the traders". It said the infrastructure built for export purposes at the trading points needs a lot of improvement in terms of the structure, purpose and the same must be built by "reputed agencies or firms" in order to provide world class facility. It has recommended that the Department of Commerce should engage the State government to resolve the problems. "The committee is of considered view that on the lines of imported products, a system may be devised for export products too where the excise authorities after verifying the product for export may issue 'goods checked and sealed certificate' which may be deemed adequate to cover compliance for all the 17 Acts and Rules," it added.
SOURCE: The Economic Times
Apex industry body ASSOCHAM today stated that fall in wholesale price index (WPI) numbers for the month of November 2016 is in tandem with the expectations which started to feel the depressive state in the Indian economy owing to the demonetisation announcement in November 2016. The chamber indicates that WPI numbers for the coming months is expected to fall in coming months since any increase in crude oil prices due to output cut decision by OPEC countries and increase in prices of other commodities due to stimulus given by US and other developed countries will be offset by downward pressure on consumption demand, which is a main contributor in GDP.
The November 2016 WPI number stood at 3.15 percent as compared to 3.39 percent during the previous month. Going by the sectoral composition, the fall in WPI is mainly driven by vegetables, potato and fruits. ASSOCHAM states that prices of products which are of national interest has been rising at industry level are wheat and pulses which policy makers should check and address through supply side responses, said Sunil Kanoria, president ASSOCHAM .
ASSOCHAM states that though the RBI reduced the key policy rates in October 2016 to provide impetus to industry but banning of specified bank notes casted a shadow on industrial outlook, which has increased the burden further on producers to strive in the situation of over capacity along with slacking demand. ASSOCHAM cautions the policy makers to take some corrective actions to arrest the fall in WPI since IIP numbers for the month of October 2016 have fallen by 1.9 percent and it is further expected to fall in the coming months owing to the prolong effect of ban on currency of high denomination which will create downward price pressure on industrial output.
ASSOCHAM suggests that boost to industry is required from both monetary and fiscal policy, i.e., lowering of interest rates by RBI and reduction in tax rates by Government of India in the coming budget to counter the effects of overall slowdown in Indian economy which is expected to curtail the GDP growth by 0.5 percent to 1.0 percent as clearly seen from indicators such as GDP for 2nd quarter of 2016-17, CPI for November 2016, and IIP for October 2016.
SOURCE: The Financial Express
Union Transport Minister Nitin Gadkari today said infrastructure sector has the potential to boost the country’s GDP growth by up to 3 per cent and the Centre is making all efforts to achieve this target. “Infrastructure as a sector is not just an employment generator but also a growth engine. By ensuring that land acquisition processes are less complicated and with improved cross ministerial coordination to get projects cleared, the cost of projects has been optimised,” the Minister of Road Transport, Highways and Shipping said. “This has facilitated the return of investor interest in road projects. Initiatives like construction of 40 kilometres of roads every day, building the 14 express-highways and exploring the potential of in-land waterways can boost our GDP growth by 2-3 per cent,” he said.
Gadkari, who was the chief guest at the launch of InfraCircle — an infrastructure-focused digital platform of News Corp VCCircle, said that “India’s shipping sector has witnessed a better performance this year with 12 ports showing profits to the tune of Rs 6,000 crore. We intend to make this figure Rs 7,000 crore in the next financial year”. Speaking about the scope for innovation in the sector, Gadkari said, “We realise that pollution is a serious problem and believe that 100 per cent ethanol oil based buses can ply on Indian roads. Our government is looking at electric modes of transport to address the problem of pollution in the Capital over the next 400 days.”
SOURCE: The Financial Express
The interest rate hike by the US Federal Reserve will bring volatility and uncertainty in capital flows into emerging market economies, but India is very well cushioned to absorb the impact, Chief economic Advisor Arvind Subramanian said today. He said that the 0.25 per cent rate hike by the US Fed was on expected lines and India with strong macro economic fundamentals is “less anxious” than other markets. “The US interest rates are rising and dollars are rising. Of course, there will be some reassessment and money will flow from emerging market to US at least for some time. But in that, we will be less affected than other countries,” he said at an Assocham event here. “This was anticipated and expected. The Indian economy is very well cushioned to absorb the impact of that. I think the RBI policy also took an account of this in a sensible way. I think there will be some short-term things, but we need not worry on that,” Subramanian said.
The benchmark BSE Sensex fell 141 points in opening trade today, but later recovered and was trading 42 points higher in post noon trade. “The RBI took the right call on this. In this period of volatility and uncertainty, we need to have a strong macro economy which we have. I am a little bit less concerned about that,” he said. Last week, the RBI maintained a status quo on interest rates, saying it wants to wait and see how the impact of demonetisation and US Fed rate hike play out. He said that there has been a big flow of funds from emerging markets, but given that India is a bright spot, the impact will be much less.
Asked about spike in oil prices after OPEC and non-OPEC members agreed to cut production for the first time since 2008, he said that the oil market has evolved in the last 5-7 years and there is a natural kind of ceiling on how high the price can go because of shale oil and shale gas. “If the prices go up and down, there will be some implication, but I don’t think the oil prices are going to surge to a level which is difficult for Indian economy to handle,” the chief economic advisor said. Oil prices rose to a 17-month high after a deal between OPEC and non-OPEC members but tumbled after the Federal Reserve raised interest rates for the first time this year. While West Texas Intermediate oil dropped USD 1.94 to USD 51.04 a barrel on the New York Mercantile Exchange, Brent fell USD 1.82, or 3.3 percent, to USD 53.90 a barrel.
SOURCE: The Financial Express
Buyers from the US and various European nations are looking for something special from India as they value handwork, fabric texturing, a soft feel, organic fibres, embroideries, metallic threads and foil printing that are difficult to find outside the country, according to Shades of India. However, price has become a major constraint on what can be done. Cotton and voile are the most preferred fabrics in the US, while silk, tussar, velvet and linen sell the most in Europe and East Asia, Mandeep Nagi, design director of Shades of India told Fibre2Fashion. When asked about how she plans to deal with rising prices, Nagi said that one method is to use a relatively less expensive fabric like linen-cotton and compensate with surface treatment that looks rich, but is less expensive. Shades of India sources all its fabrics from various regions in India to make authentic pieces for its national as well as international clientele. “We source cotton from the south, silk from Bangalore, tussar silk from Baghalpore. We are always looking for new sources like hand weaves from Bengal or fine wool from Ladakh,” added Nagi.
Talking about her latest collection, she said, “Nazraana is a story based on the traditions of Awadh – the region rich in culture with its capital in Lucknow. Nazraana reflects the princely life of the court in the early 19th century, the beauty and independence of its women, the traditions of dance and music and the exquisite work found in its textiles. It was a centre of Indo-Persian culture that also absorbed influences from Europe.”
Besides fashion, Shades of India also deals in home furnishings and Nagi has found that Indians have become more conscious about their homes with changing times. “Indians follow contemporary trends. They also want something that is brighter in colour than the naturals beloved in Europe and the US. But they are still uncertain how to combine colours, fabrics and textures. We specialise in providing that help. Interiors are now an important part of our business,” continued Nagi. “There has been lots of growth reflected in both, the new apartments and homes that have come up and in people making changes in their apartments. This growth will continue – though on a bit of a roller coaster depending on the state of the economy and the money people feel they can spend,” added Nagi while talking about the growth of the home furnishings market of India. The company recently launched a new brand called Neem by Shades of India in the US, which has received positive response in the country so far.
Speaking about the expansion plans, she said, “Our major markets in India are the metropolis. We want to expand into three or four more. We are also looking at strengthening our online presence. Abroad our major market is the US where we mainly pin our hopes on Neem by Shades of India. But we also have substantial private label work in the US – much of it in garments.”
SOURCE: Fibre2fashion
A revised agreement between India and Cyprus for the avoidance of double taxation and the prevention of fiscal evasion (DTAA) with respect to taxes on income, along with its protocol, was signed last month in Nicosia, which will replace the existing DTAA that was signed by the two countries on June 13, 1994. The November 18, 2016 protocol was signed by Ravi Bangar, High Commissioner of India to Cyprus on behalf of India and Harris Georgiades, the Minister of Finance on behalf of Cyprus. Both sides have now exchanged notifications intimating the completion of their respective internal procedures for the entry into force of the DTAA, with which the revised DTAA shall come into effect in India in the fiscal years beginning on or after April 1, 2017. The revised DTAA will enable source based taxation of capital gains on shares, except in respect of investments made prior to April 1, 2017. In addition, the DTAA will also bring into effect updated provisions as per international standards and in accordance with the consistent position of India.
In a separate development, the notification of Cyprus under section 94A of the Income Tax Act, 1961, as a notified jurisdictional area for lack of effective exchange of information, has been rescinded with effect from 1.11.2013 [Notification No. 114/2016 dated 14.12.2016]. The bilateral economic ties between the two countries are expected to be further strengthened by these measures.
SOURCE: The Financial Express
Implementation of the Logistics Exchange Memorandum of Agreement (LEMOA) between India and the US, which is expected to take defence ties between the two to the next level, is likely to face significant delays even as America considers India a ‘major defence partner’. “It takes multiple years to get ships to work together whether it is passing fuel or parts or helping with aircraft. That will take a number of years to arrange that. We are waiting for the final points of contact,” said Joseph P. Aucoin, Commander, US Seventh Fleet. Aucoin, who is on a visit to India, met Navy Chief Sunil Lanba here on Friday. He said that the US Navy is currently doing a feasibility study of sorts of some of the major Indian port before the pact is fully implemented. According to him, the US is waiting for India to inform them. “They have there own bureaucratic processes to work through as we have. We are waiting for them to reciprocate on points of contact. The US has already sent its own list of points of contact to the Indian government,” he said.
LEMOA is one of the three foundational pacts that US signs with all its crucial defence allies. It is commonly known as Logistics Services Agreement. The pact entails exchange of logistics support and supplies that are generally required during combined exercises, port calls and cooperative efforts in unforeseen exigencies like in a humanitarian assistance and disaster relief situation. It facilitates the provision of services and support that either party may need when in an out-of-country situation. It also ensures that the financial transactions and billing is correct and timely.
The LEMOA was signed in August between Defence Minister Manohar Parrikar and US Defence Secretary Ashton Carter. According to the Ministry of Defence, India stands to benefit from the pact in case there is a need for seeking assistance for its military while in transit through US bases. On the issue of South China Sea dispute, he said the US is in support of open lines of sea communications. Aucoin also said that the US was keen to expand the Malabar joint trilateral navy exercise that is being held annually among the US, India and Japan. As a result, he said, US wants to do more anti-submarine exercises. However, he said for more countries such as Australia and China to join the exercise, the decision will be taken jointly by US, India and Japan.
SOURCE: The Hindu Business Line
In encouraging remarks for the perturbed exporters, Honorary Consul General of Pakistan for Finland Wille Eerola has emphasised that the European bloc will remain the biggest export market for the country’s textile sector in coming years despite a huge influx of Chinese investment in the South Asian nation. Referring to ongoing developments under the China-Pakistan Economic Corridor (CPEC), he said the project would definitely change the country’s landscape and bring both countries (China and Pakistan) more closer.
However, textile lobbies should be aware that China itself was a big exporter of raw textile products. “Europe will be the biggest market for Pakistan’s textile products in the future, however, Pakistan should also focus on other export products to increase its share in the European market and reduce dependence on textiles,” Eerola said in an interview with The Express Tribune. For him, Pakistan is full of opportunities, especially for Nordic companies, but the country needs to improve its image at the international level. “There is a lot of negative news being aired on international media and this is the biggest hurdle in the way of motivating Nordic companies to look for opportunities in Pakistan,” he said, adding to encourage investors they had to be brought to Pakistan so they could see true picture of the country. Eerola, who also chairs the Nordic-Pakistan Business Summit, said he had already managed to bring many Nordic investors to Pakistan and around 80 companies were interested in pouring capital into the country.
Bilateral trade between the EU and Pakistan stood at €10.5 billion in 2015. However, trade between Pakistan and the seven Nordic countries remained at around €150 million. “The first target should be to at least triple the trade figure in coming years,” he said. “Pakistan should focus on other products like surgical and food-related items in order to ramp up its export revenue in the Nordic region; it is time that Pakistan’s exporters look out of the box,” he suggested.
Talking about CPEC, he said though Chinese companies were dominating the project, Nordic companies still had several opportunities to tap. “CPEC is bringing China and Pakistan closer but there is always room for European companies to play their role,” he said. “However, Nordic companies are not in a position to execute any project alone in Pakistan as it is hard for any foreign company to understand the exact ground realities.” He believed that such projects could only be undertaken via joint ventures with local counterparts, as foreign companies would help in bringing investments, technology and expertise. However, Pakistani companies right now were more inclined towards China.
SOURCE: The Tribune
The country’s export values totalled US$159.5 billion in the first 11 months of this year, up 7.5 per cent over the same period last year. No sudden fluctuation is expected in December’s export value, compared to November’s level of around $15.6 billion. This means the 10 per cent goal is almost unachievable. Minister of Industry and Trade Tran Tuan Anh told government portal chinhphu.vn that the country faced significant obstacles in export activities this year because political instability caused demand and price declines in its major export markets. Agricultural and aquatic products especially suffered from low world prices, with rice exports falling 20 per cent in quantity and 18 per cent in value this year. A slump of around $1 billion in mineral exports, though in line with a national policy to reduce mineral exports, hindered the general growth. Fossil coal export was down 45 per cent in quantity and 47 per cent in value, and the rates of decline were 20 per cent and 40 per cent, respectively, for crude oil, in 2016.
Viet Nam Textile and Apparel Association Chairman Vu Duc Giang said 2016 was the toughest year for the garment and textile sector over the last decade. The sector posted growth of roughly 5 per cent this year, half of the rate recorded in several previous years. “Garment and textile firms say they have ‘lived from hand to mouth’ in 2016,” he told chinhphu.vn. Telephone and component exports hit $32 billion this year, after reaching $30.6 billion in 2015 and $23.6 billion in 2014. However, growth of these exports, which accounted for nearly one-fifth of all export values of the nation, fell to some 10 per cent this year from a peak of 30 per cent recorded some years ago. Pham Tat Thang, a senior advisor from the ministry’s Viet Nam Institute for Trade, said there were bright points in the dim situation. Some traditional exports witnessed significant growth this year, such as coffee (up 26 per cent), cashew nuts (up 16 per cent) and pepper (up 16 per cent).
Vegetables also increased 30 per cent, confectionery was up 17 per cent, and animal feed rose by 17 per cent. Tran Thanh Hai, deputy head of the ministry’s Import-Export Department, said while major exporting countries also suffered declines, Viet Nam’s export growth reaching nearly 8 per cent was worth acknowledgement. “Current export values show that farm produce is consumed well and is benefiting farmers, and more jobs are generated by enterprises involved in industrial production. This is a valuable issue behind the 8 per cent figure,” he told chinhphu.vn. Hai said Viet Nam could better the export situation next year, taking advantage of its free trade agreement with the European Union, and the Regional Comprehensive Economic Partnership. He said the country was to restructure export products to promote its competitive edges while trying to expand markets. “An example, five years ago, no one thought Viet Nam would be a bright point in the technology world or a mobile phone production base. But now we have a reputation in these areas,” he said. Hai said the country needed to decide which link of the global value chain to take part in to maximise benefits, and this would require the rationalisation of economic sectors and trade policies. Imports were to be reasonably balanced to meet demand of the economy, support exports, and help processing enterprises better join the global value chain, he added.
SOURCE: The Vietnam Net
Mr Samuel Hemans-Arday, Deputy Marketing Manager Akosombo Textiles Limited (ATL), has called on the in-coming government of the New Patriotic Party (NPP) to create an enabling environment for local industries especially the textile industries to grow. Mr Hemans-Arday said: “The in-coming government should take some measures to revive conditions crippling the local textile industries, citing the 17.5 per cent VAT rate as an example”. He also noted that, smuggled goods into the country, unstable exchange rates, influx of Chinese products, high utility tariffs as other conditions that were hindering business growth. Mr. Hemans-Arday who said this in an interview with the Ghana News Agency, cautioned that if the current economic situation continues, ATL would be pushed to lay workers off. He said in order to prevent fabrics smuggling into the country, the government should consider allowing only one border for importing fabrics, preferably the Tema Harbor. He added that this would help curb the problem of smuggled goods and the government could earn some revenue from the tax or import duty paid. “Besides avoiding duty payments, these smuggled goods usually copy our logo, design and brand and they sell it cheaper on the market. So we have fake ATL fabrics smuggled into the country. “The custom officers and authorities at the various borders should be able to identify these fake goods and take the appropriate action against smugglers,” he added. He said, “If the conditions persist ATL will eventually have to lay off some workers or close down the spinning and weaving sector which employs about 500 people and resort to importing gray cloths for production. “We have moved from employing about 3,000 people to 1,100 currently.” He also said that because of the challenges, the local textiles industries such as Printex, GTP and ATL inclusive run their machines three times a week instead of five times a week.
“For you to achieve 50 per cent production capacity a textile company must run five times in a week on three shifts: morning, afternoon and night,” he said. Mr. Hemans-Arday recommended a reconsideration of the VAT rate for the local industries. “The government can decide that the Textile industries pay VAT rate of 5 per cent to help the local industries compete with the Asia Products. “Because Asian textile companies, for instance China, get 13 per cent rebate on any export they do. So they can decide to sell their products at the cost price and then keep the rebate as their profit. “The cost of production has been very high for local industries. Besides paying high duties for the importation of raw material, high utility tariff, paying Social Security and National Insurance Trust (SSNIT) contribution for each staff and high cost of raw materials has made production very expensive. “We use black oil for our production, which is petroleum by product but it is more expensive than even petrol which should not be the case. Chinese companies use steam which is free to run their machines. Energy cost is also crippling the textile industry,” he said. He iterated: “The local textile industry do dread competition, but it is the unfair competition we detest.” He suggested that the government should give a concessionary tariff for local industries in terms of energy and water for all industries, reduce interest rates and also ensure the cedi stability. “The interest rate is too high for companies. 30-32 per cent is too high for companies. It makes it difficult for companies to invest, reap profits and pay back loans. Some banks even have rates as high as 40 per cent. The exchange rate is also not too stable. “For instance; you import raw materials at a particular price, then you produce and fix prices based on the cost of production. After less than three months we get to the market only to find that the currency has devalued by a certain percentage. “The company needs to either increase the products price or absorb the costs. Most often, the company absorbs the cost.” Despite all these challenges, Mr. Hemans-Arday says ATL remains the only vertically integrated manufacturing company and noted for its quality cotton fabrics. It is part of the “CHA Textile Group of companies, a leading textile multinational conglomerate.
SOURCE: The Ghana Business News
Sindh textile exporters criticised the federal government on withdrawing one-third reduction in gas prices for industries, saying that the haphazard decision of the Economic Coordination Committee (ECC) has hurt the government’s credibility. They also slammed the Sindh government for opposing the earlier decision of the ECC in which it reduced gas prices. “Is it some kind of joke?” Pakistan Apparel Forum Chairman Jawed Bilwani questioned while talking to The Express Tribune. “The decision has badly hit the credibility of the top economic decision making body. “The decision negates the impression in the country that the ECC takes decisions on solid homework. When you take such random decisions, it shows that you do not have any homework behind your assessments,” said Bilwani, a Karachi-based apparel exporter who represents different associations of value-added textile sector.
The ECC of the Cabinet on Thursday revised its earlier decision of reduction in gas sale price for industrial sector. “It will hurt export-oriented industries in Sindh and Khyber-Pakhtunkhwa,” said. Fawad Anwar, Managing Director of Al Karam Textile Mills – one of the country’s leading composite units. The government is not taking the problems of exporters seriously and this will further hit Pakistan’s exports. About three months ago, the government and the private sector agreed on a package for manufacturing sector, but it has not been announced yet by the government, added Anwar.
On November 26, the ECC reduced the gas prices for the influential industrial sector from Rs702 per million British thermal units (mmbtu) including GST to Rs500 – a reduction of 28.8%. The benefit for the five-export oriented industries had been higher than this, as exports are exempted from paying 17% sales tax. The reduction for the export-oriented industries was 33.3%, as their gas prices came down from Rs600 per mmbtu to Rs400 per mmbtu. The space for reducing prices up to 33.3% was created after the government decided to pass on the benefits of lower input prices to the industries instead of giving them to provinces as Gas Development Surcharge (GDS). However, immediately after the ECC’s decision, Sindh government objected to it, forcing the federal government to withhold the notification of the ECC decision, according to sources in the Ministry of Finance. They said that Sindh Chief Minister Syed Murad Ali Shah wrote a letter to Prime Minister Nawaz Sharif and protested against the decision. The GDS is an important source of non-tax revenue for the provinces. In fiscal year 2015-16, ended on June 30, the federal government gave Rs33 billion to the federating units in GDS. During the first three months of this fiscal year, the Centre transferred Rs9.9 billion on account of GDS.
The industrialists in Punjab also protested against the decision of reduction in gas prices, as their gas prices are determined after including the cost of Liquefied Natural Gas, which is an imported and expensive fuel. After the 33% cut in in the industrial gas tariff, the price for Sindh industries had come down to Rs400 mmbtu excluding GST whereas Punjab industries were paying over Rs1,000 per mmbtu for Re-gasified Liquid Natural Gas (RLNG).
SOURCE: The Tribune
Talks in the trading ring in Pakistan have confirmed that in a recent meeting the Sui Northern Gas Company has assured a delegation of All Pakistan Textile Mills Association (Aptma) to cut gas tariff by 28 per cent. There were some big-lot deals of buying and selling from many millers who tried to get hold of quality cotton, but ginners were generally reluctant to sell their stock in the hope of getting better prices in future. As a result, prices generally remained under pressure on the ready counter. The Karachi Cotton Association cut down its spot rate by Rs 50 per maund (around 37 kilograms).
Major deals on the ready counter were: 400 bales from Shahdadpur (done at Rs5,600), 3,000 bales Sanghar (Rs5,900 to Rs6,200), 412 bales, Masqoodo (Rs5,965), 2,000 bales, Rohri (Rs6300), 2,000 bales, Saleh Pat (Rs6,300), 1,400 bales, Mianwali (Rs6,000), 600 bales, Khanewal (Rs6,300 to Rs6,365), 1,600 bales, Yazman Mandi (Rs6,300 to Rs6,450), 600 bales, Dharanwala (Rs6,325), 600 bales, Faqirwali (Rs6,350), 800 bales, Fort Abbas (Rs6,400), 2,000 bales, Haroonabad (Rs6,400) and 600 bales, Liaquatpur (Rs6,300 to Rs6,365). The cotton market thus was found to be in line with global trend. The activity also remained modest as buyers generally remained cautious and avoided taking any risk at this juncture. Brokers said that slack cotton yarn market coupled with issue of squaring up of books by most of the corporate entities owing to bank closing on Dec 31 also slowed down trading activity. However, some brokers believed that big spinning units have already accumulated their stocks to meet their seasonal demand and only small and medium-sized mills were engaged in small lots trading at present.
SOURCE: Yarns&Fibers
Textiles have long been an integral part of Southeast Asian cultures since they are the physical manifestation of each society’s beliefs, traditions, aesthetics, and artistic ability. KPWI, a community dedicated to preserving Indonesian traditional fabrics, to promote ikat textile from Ende East Nusa Tenggara initiated an exhibition at the Textile Museum in South Jakarta on Wednesday. KPWI director Sinta Kaniawati said that she hoped Ende's traditional craftsmen can use the exhibition to promote their work and raise awareness of the unique style by gaining more recognition from the public. All of the ikat fabrics in the exhibition are handwoven and naturally dyed. It can take up to six months to produce just a single roll of ikat cloth.
Compared to ikat from other parts of East Nusa Tenggara, Ende-style ikat features smaller and denser patterns, usually inspired by nature, such as flowers, horses, cows and lizards. The muted color palette is made up mostly of dark brown, black, yellow and red. Ende artisans create the dyes from mud, charcoal, turmeric and mulberries. The co-organizer of the event, Ali Abubekar, Director of the Museum of Ende Woven Ikat said that lack of awareness and public appreciation have led to many weavers and dyers in Ende struggling to make ends meet. Ali fears that no one will want to make Ende-style ikat anymore and the unique style will go extinct. The KPWI during the exhibition to raise funds for local weavers in Ende will be organizing an ikat cloth auction and a fashion show featuring designer Musa Widyatmojo. The exhibition which kicked off on 14th Dec will run until 20th Dec at the Textile Museum in South Jakarta.
SOURCE: Yarns&Fibers
Prices of clothing and footwear increased by 1.6 per cent between October and November 2016 in the UK, compared to a fall of 0.1 per cent between the same months last year, says a recent report. This segment mainly caused the Consumer Prices Index (CPI) to rise by 1.2 per cent in the year to November 2016, compared with a 0.9 per cent rise in October. Prices of women’s and men’s outerwear rose particularly in the period between October and November 2016, according to the UK consumer price inflation: Nov 2016 report by the Office for National Statistics (ONS). This is the largest October to November rise since 2010 and continues the rather volatile movements observed during 2016, especially over the latest 3 months. The rise follows a relatively small increase in prices in October 2016, which resulted in a downward contribution to the change in the rate of a similar magnitude to the upward effect seen in November. The CPI rate in November was the highest since October 2014, when it was 1.3 per cent.
SOURCE: Fibre2fashion
Alhaji Abubakar Sani Bello, state governor of Niger has urged Indonesian investors to set up textile manufacturing plants in the West African country. While hosting Harry Purwanto, the Indonesia Ambassador to Niger in his office in Minna, the governor invited Indonesian firms to cash in on the availability of high-quality cotton in Niger. The governor said that Niger has abundant raw material and Indonesian companies, which produce fabrics known for their uniqueness, can leverage it and start producing textiles in the country, according to Niger media reports.
Bello also said that the favourable business environment of Niger will ensure profitable returns for the Indonesian investors. The Niger governor also said that the country wants to partner with Indonesia to develop its SME sector. The Asian country also asked for land to set up an industrial park at Tegina in Rafi local government area for manufacturing products and Bello agreed to provide it. The Indonesian ambassador said that both countries have a lot in common and can benefit from their diplomatic relationship that has lasted over 50 years.
SOURCE: Fibre2fashion
DOMOTEX asia/CHINAFLOOR 2017 will host a delegation of leading North American distributors to meet with suppliers from China and Asia. The week-long event includes guided factory tours and previews of product and new emerging technologies as well as a chance to visit exhibitors of the 19th DOMOTEX asia/CHINAFLOOR in Shanghai, China from March 21 - 23. The goal of the programme is to facilitate collaboration between the two groups as doing business in Asia can be daunting for many North American companies. DOMOTEX asia/CHINAFLOOR is one of the flooring industry’s largest international events. With 140,000 square metres of exhibit space and over 50,000 attendees from all over the world, the event delivers an unparalleled opportunity to see products that are making their debut for the first time. “This trip is designed to break down the barriers between Asia’s leading suppliers and North American distributors through greater understanding and shared business objectives,” said Santiago Montero, former long-time publisher and editor in chief of Floor Covering Weekly and leader of next year’s delegation. “This first-hand look at the quality and scope of Asian manufacturing operations will help foster new ties with North American distributors. Through a series of guided factory tours and face-to-face meetings, along with frank peer-to-peer discussions among group members themselves, we know we can help distributors deepen their ties with Asian manufacturers to help their businesses grow and thrive in today’s highly competitive market,” added Montero.
The 2017 delegation will include some of North America’s leading distribution companies such as JJ Haines, Herregan, A-M Supply, Abraham Linc and others. “The 2016 Distributor Delegation trip to DOMOTEX asia/CHINAFLOOR was my first trip to China and I was overwhelmed by the innovation and quality of the manufacturing facilities. In fact, we scheduled follow up meetings with 3 manufacturers; the new partnerships we developed are part of a private label program our Consolidated Distribution Network will be launching in Q1, 2017,” said Enos Farnsworth, director of distribution for Denver Hardwoods. “For me, the trip confirmed that the major factories in China are definitely high quality operations. I was very pleased with the technology and investment I saw, as well as product development. Being there also expanded my education on dealing with China on a direct basis,” said Jeff Jaeckle, president, Jaeckle Distributors. “I have attended DOMOTEX asia/CHINAFLOOR for nearly 10 years now and each year I find something new and exciting in product development as well as a renewed effort by Asian suppliers to become more meaningful to their North American business partners. It truly has been a transformative experience for the global flooring industry,” continued Montero.
SOURCE: Fibre2fashion