Intellectual property (IP) such as patents, copyrights and trade secrets and software are classified as intangible property. They are considered intangible because they are totally divorceable from the tangible property in which the intellectual element is embodied. IP law and taxation has been the subject of considerable development, globally and in India, over the past years. From a global perspective, absent any differential tax treatment, most VAT/GST implementing countries are agnostic to characterisation of intangibles. That said, from the perspective of defining tax jurisdictions as well as compliance procedures, intangibles have been accorded the status of services internationally. On the other hand, levy of indirect tax on intangibles in India has always been a matter of dispute, and that dispute is far from being settled. Under the existing indirect tax laws, intangibles can be taxed under service tax or VAT depending on whether the transaction qualifies as one in services or goods, respectively. However, in certain cases, considering the ambiguity surrounding chargeability of service tax by the Union government and VAT by respective state governments on intangibles, the industry has been playing conservative and discharging both VAT and service tax. This paradox stems from the fact that constitutionally, while the Union government can levy tax on intangibles only if it qualifies as services, the state governments can levy tax on it, if it qualifies as sale/deemed sale of goods. Since, intangibles form a substantial portion of the net worth of many businesses, both the Union and state governments see it as a low-hanging fruit as far as tax revenue collections are concerned. Following the landmark Supreme Court judgment in the case of TCS, the state governments have been levying VAT on canned/branded/packaged software. Internationally, too, canned/packaged software are classified as goods in several jurisdictions. However, temporary transfer or permit of use or enjoyment of IPR and designing, upgrading, adapting, implementing activities, etc, related to software have been classified as service for levy of service tax.
The dual taxation of intangibles appears to be on the rise. Coupled with this, is the lack of clarity in the tax treatment of emerging digital instruments such as cloud offerings, e-vouchers, e-wallets, etc. In a dynamic business environment, several emerging transactions and business models—for instance, franchisee arrangements, user rights, licenses, entitlement certificates, carbon credits, etc— continue to grapple with uncertainty. This tug of war between the Union and state governments, to collect tax on transfer of intangibles, is expected to end with introduction of Goods and Service Tax (GST) wherein both the Union and state governments would be allowed to collect tax equally on the same transaction. With GST close to becoming a reality, it is time that the Union and the state governments come to a common ground regarding their respective jurisdictions as far as taxation of intangibles is concerned. The issue seems to be within the radar of the drafting committee for GST laws. The draft Model GST law issued in June 2016 specifically excluded intangible property from the definition of goods and included it under the definition of services (much in line with the international experience/ practice). This position was however undone in the November 2016 version of the Model GST law. While intangibles per se may be classified as goods, business transactions concerning intangibles are mostly in the nature of licensing/non-exclusive rights to use/exploit commercially. Given this, such transactions could still be effectively taxed as services (with exceptions). Further, activities related to information technology software, presently classified as declared service, have been expressly declared as supply of service under the model GST law, thereby, bringing back the age-old dilemma whether supply of software is a supply of goods or of services. Intangibles, being one of the most disputed indirect tax subjects, require clarity, particularly when we are looking forward to a big leap in the indirect tax regime via the implementation of GST. Though GST may not resolve the issue immediately, it must settle the issue over time. With each goods and service supply required to be reported as per the applicable code under the GST regime, the need is to wait and watch whether the government notifies intangibles under the goods codes (HSN) or service codes (SAC). One more aspect where the government should come out with clear guidance without leaving room for ambiguity is the place of supply for transactions in intangibles, clearly identifying the taxing jurisdiction for various transactions. With increasing economic relevance of intangibles, clarity in taxation of intangibles can boost the growth prospects of the Indian economy. While the Union government’s quick action on moving towards “one nation, one tax” is quite visible, it remains to be seen what initiatives it takes towards fixing the issue the multi-billion-dollar intangibles segment faces. With inputs from Poonam Harjani, director, and Dhiraj Agarwal, associate director, BMR & Associates LLP
Source: Financial Express
For a smooth transition of over 80 lakh assessees to the new indirect tax regime being implemented from this July, the Goods and Services Tax Network is setting up a call centre to answer queries. “Since GST is a completely new tax system, and will have a new method and timeline for filing returns, the proposed call centre will answer all technical queries of taxpayers,” said a senior official. The GSTN is already involved in setting up the IT infrastructure for the new indirect tax levy, including a common platform for registration of assessees, filing of returns and payment of taxes. The call centre would be expected to handle queries on all these issues, besides other topics such as audit and scrutiny, refunds, settlement and input tax credit. Questions through phone calls as well as those received by email would be addressed.
Bids invited
The GSTN has already floated a tender and has invited bids from interested entities for a period of five years. It proposes to set up the primary call centre in Delhi NCR along with a secondary or disaster recovery centre in a tier two city such as Pune, Bhopal or Vadodara. “GSTN will launch the Primary Call Centre in the first phase and after three months’ time it would operate the call centre from minimum two locations as a measure to limit operational risk and ensure,” said the tender. The call centre is likely to work seven days a week between 8 am to 12 am daily.
E-signing facility
Meanwhile, with taxpayers expected to sign at least 12 monthly returns and an annual return under GST each, the GSTN is also looking for an e-sign provider. “Since all returns have to be filed online, the facility of e-signing has to be provided to each taxpayer,” said the official. The taxpayer will be expected to pay for the service.
Training of officials
Moving ahead to implement the GST, training of government officials has now reached the last lap. According to data with the National Academy of Customs, Excise and Narcotics (NACEN) that is responsible for the training, more than half the targeted 60,000 field officials have been trained. The training of source trainers, master trainers and other trainers has also been completed.
Source: Business Line
Constraints on cash withdrawals negatively influenced procurement of new cotton, yarns and fabric. The textile chemicals market in India is projected to cross $ 2.5 billion by 2021, on account of increasing industrialisation, surging consumption of textiles in engineered products and rapidly rising awareness about the benefits of using textile chemicals. Apart from this, rising disposable income and increasing living standards are expected to significantly augment demand for textile chemicals in India over the next five years. Government of India has been increasingly focusing on taking initiatives to make the country’s textile industry more competent on the global landscape.The Indian textiles industry is extremely varied, with the hand-spun and hand-woven textiles sectors at one end of the spectrum, while the capital intensive sophisticated mills sector at the other end of the spectrum. The decentralised power looms/ hosiery and knitting sector form the largest component of the textiles sector. Prime Minister Narendra Modi announced a war against black money and corruption. In an emboldened move, it was declared that the Rs 500 and Rs 1000 Rupee notes will no longer be legal tender from November 8, 2016 midnight. This measure was taken by the PM in an attempt to address the resolve against corruption, black money, terrorism and counterfeit notes. This move is expected to cleanse the formal economic system and discard black money at the same time. One of the reasons that prompted the Government to demonetize Rs 500 and Rs 1000 notes is that their circulation was not in line with the economic growth. As per the Finance Ministry, during 2011-2016 periods, the circulation of all notes grew 40 percent but the circulation of Rs 500 and Rs 1000 notes went up by 76 percent and 109 percent respectively. Relatively speaking, the economy has grown only by 30 percent which is way below the money circulation. The sudden decline in money supply and simultaneous increase in bank deposits has adversely impacted consumption demand in the economy, though this is considered as a short term effect. This may also have adverse impact on real estate and informal sectors thus leading to lower GDP growth. After demonetization the industry is waiting for the budget 2017-18. The Indian economy was growing at a healthy pace of 7.6percent, when the demonetization drive suddenly slowed down the pace of the economy. Liquidity issues are impacting businesses, especially FMCG sector, automobiles, textile sector and real estate where the cash transactions were dominant. Let us look at the impact of this move on the pre budget expectations for textile industry in India.
Textiles market
In the light of recent events occurring as a consequence of demonetization, consumer expenses have resulted in a slowdown in domestic demand for apparel and other end-products of textile industry. Textile industry being one of the most labor intensive industry have been facing the heat of this move. The textile industry employs about 40 million workers and 60 million indirectly. India's overall textile exports during FY 2015-16 stood at US$ 40 billion. The RBI verdict of scrapping Rs 500 and Rs 1000 currency notes has received mixed responses from textile sector. The organised textile sector has welcomed the decision as it would streamline the transaction system and would result in transparent business transaction with overseas traders. The decision would increase the usage of electronic clearing system for making payments and would reduce the black transactions significantly. This move has reciprocated in the form of excess inventory accumulation. On contrary, this decision is setback for unorganised textile sector of the country that is dependent on domestic market for revenue generation. Restriction of withdrawals from bank did impact the weekly payment to contractual workers in textile sector. Additionally, constraints on cash withdrawals negatively influenced the procurement of new cotton, yarns and fabric in India.
Source: Business Standard
To sustain growth,budget should focus on better infrastructure, education & skill-set training. Over the past year, the most significant transformation that took place in our country was demonetisation. It impacted the industry as a whole which has further tempered the economic growth. Moving forward with the current state of the economy and cash crunch, we are aiming at adopting a holistic cashless model. This move has definitely whetted the interest of the citizens of the country as to what the upcoming budget has in store for them this financial year. The textile industry has definitely been impacted in the last quarter by the decision of the government. This industry second, only after agriculture, in providing employment to more than 100 million people directly and indirectly out of which most of them are uneducated and work on a daily wage basis. Contributing to more than 11 percent of the total exports in the country, the textile industry is estimated to reach $ 223 billion in the year 2021. The textile industry also contributes to 5 percent of India’s GDP and is expected to contribute even more in the near future. The 2016 budget did address a few gaps of the textile industry through revision of taxation, infrastructure improvement and relaxation of relevant policies directly affecting the industry. The budget also saw the import duty on elastane printed fabrics, cotton & metallic yarn dyed blended fabrics, cotton & spandex, metallic blended fabrics, cotton & silk lining fabric reduced to zero provided these articles are imported to manufacture garments for exports.
Lubeina Shahpurwala, partner, Mustang Socks
With the aim to attract investments of $ 11 billion and generate $ 30 billion in exports, a Rs 6,006-crore special package for textiles and apparel sector was rolled out in June, which was expected to create one crore new jobs in three years. Recently, the government approved reforms in the apparel made-ups sector, aimed at creating large scale direct and indirect employment of up to 11 lakh persons over the next three years and boosting exports. To sustain the growth trajectory of the booming textile industry, the budget should focus upon better infrastructure, education and skill-set training; along with a further relaxation of laws to give a boost to the textile industry. The future for the Indian textile industry looks promising, buoyed by both strong domestic consumption and demands from export. With consumerism and disposable income on the rise, the retail sector has experienced a rapid growth in the past decade with the entry of several international players like Marks & Spencer, Guess and Next into the Indian market. This industry will continue to explode, and a favourable budget will give the industry an extra push!
Source: Business Standard
Just cutting logistics inefficiencies will give a 5% boost. Though there are concerns that new US president Donald Trump will further slow the march of globalisation—the World Trade Organization had, in any case, warned of slower trade growth last year—India’s poor exports showing seems more of its own making. Perhaps why, while India’s share of global trade fell from 1.68% in 2014 to 1.62% in 2015, China saw its exports’ share rise from 12.42% to 13.96%. Even Bangladesh’s share rose from 0.18% to 0.22% and Vietnam’s from 0.8 to 1.15% during this period. Although rising wages and lower productivity are traditionally seen as the culprit, a new report by CII-Maersk says India is losing out due to high indirect costs, which accrue from delays and unreliable transportation—these costs could be as high as 38-47% of the total transportation and logistics cost. Moreover, it points that India’s logistic costs are 14.4% of GDP, as compared with China’s 8%. Even data from World Bank shows India’s exports cost were $1,322 per container in 2014 as compared with $572 for Indonesia and $823 for China. In other words, if Make-in-India is to succeed, apart from making Indian manufacturing more competitive, India’s creaking infrastructure has to be fixed. CII-Maersk estimate that if India were to reduce its indirect costs by 4%, it would be able to gain 5-8% in exports across sectors. In the case of textiles and garments which account for 4% of the country’s GDP and contribute 5% of India’s total trade, a 10% reduction would save an average of $700 per container, bringing in gains of $3.1 billion. Similarly, for electronics and auto components, the country can gain $1.2 billion and $0.3 billion, respectively, with another billion added from pharma industry once logistics costs are reduced. While creating more infrastructure is an obvious solution, as CII-Maersk points out, there are several bureaucratic processes that can be eased quite easily, with greater digitisation perhaps—regulatory documentation was regarded as the first- or second-most-challenging aspect by those surveyed for its report. The good news here is that, with GST in the offing, its smooth functioning will ease a lot of the friction as far as transporting goods across the country is concerned.
Source: Financial Express
Federation of Indian Export Organisations (FIEO) has hailed the rising trend in exports for December 2016 which has touched base at over 23 billion US Dollars registering a growth of 5.72 per cent. Overall export for the period April-December 2016-17 is also positive for the second time in a row, increasing marginally by 0.75 per cent. The FIEO President S C Ralhan while commenting on the trade data released for December by the Commerce Ministry said the growth across sectors, in 18 of the 30 major product groups, has not only been positive in December but sectors like, especially iron ore, have continued to show an overwhelming growth of well over 800 per cent. Other major sectors like jute manufacturing, oil meals, oil seeds, coffee, marine products, cashew, engineering goods, organic and inorganic chemicals, drugs and pharmaceuticals and gems and jewellery have also shown impressive growth, contributing in a major way to the growth in exports during the month. A few of the sectors have shown higher double-digit growth for the first time in recent months. Mr Ralhan stressed that petroleum products export, which has a major contribution in the exports basket, has continued to grow at well over 8 per cent. He added that global sentiments have started showing positive signs and that the US Fed rate hike and demonetisation have very limited impact on exports. Labour-intensive sectors like gems and jewellery, handicrafts, marine and engineering have shown impressive growth. Looking at the continuous positive trend of growth in exports, India is on course to achieve exports of about 270-280 billion US Dollars during the current financial year according to Mr Ralhan. The focus in such challenging times should be on marketing, with proactive support from the government. The request for an Export Development Fund in the Union Budget is well timed, he said. GST has to ensure a system which does not affect the liquidity of exporters, both of input tax for manufacturers and final product tax for merchant exporters. The interest equalisation scheme has been very effective in cutting the cost of credit and should be extended to merchant exporters in this Budget, Mr Ralhan opined.
Source: Business Line
Cotton bolls Speculation over lower-than-expected crop, higher exports likely to keep prices firm AHMEDABAD : After an unusual rally at the start of the harvest season, cotton prices are headed for a correction. This, most traders believe, will be temporary and short-lived – amidst fears of a lower-than-expected crop. They feel this will result in a further spike in prices, near the end of the arrival season in March. Cotton prices had touched a high of ₹42,500 a candy (each of 355 kg) recently, before showing a correction of about ₹1,000 to trade at ₹41,400 for the 29 mm fibre. Traders, however, consider the dip in the prices as short-term mainly because the arrivals not improving significantly after a disruption caused by the demonetisation announcement on November 8 last year. “Recently, we have seen arrivals improving somewhat but not significantly. This caused some short-term bearish trend in the prices. However, by the end of December, the arrivals have been around 1.08 crore bales (of 170 kg each), which is still deficit of about 60 lakh bales as compared to a normal arrival season,” said a leading cotton trader from Mumbai, hinting at a further upside in the cotton prices amid fears of a lesser than expected crop. Cotton exports continue to be robust further adding pressure on the supply-demand situation of the fibre in the domestic market. “So far about 20 lakh bales have been exported and another similar quantity is likely to be exported by the end of March. Total exports for the year are likely to cross 40 lakh bales amid increased buying from Vietnam and Bangladesh. This will further spike the prices to make newer highs,” informed another trader from Gujarat not willing to be named. Raw cotton prices are hovering in the range of ₹5,400-5,825 per quintal, which is one of the highest for the season. The market prices for cotton are significantly higher than the minimum support price (MSP) of ₹4,050 per quintal. In anticipation of higher prices, farmers are believed to be holding back the cotton stock. In the international market, the New York Cotton Futures ended marginally higher at 72.69 cents per pound while the Cotlook A index stood at 81.5 cents. Traders termed the fundamentals to be neutral to bearish. However, the futures continue to remain firm. “There is speculative trading taking place at present, which is keeping the prices up. Considering the crop estimates of US, China and India, there is sufficient supply for the season, putting the mid-to-long term outlook to bearish,” an exporter informed here.
Source: Business Line
After facing the brunt of demonetisation on the sale of winter wear, the hosiery industry and knitters in Ludhiana said it will also affect the sales during summer season. The industrialists said they had received 40% less orders this year from retailers. The manufacturers said the retailers were conservative in placing orders and it was affecting their production. They said lower consumer spending had hit the domestic demand for apparels and other end-products of textile industry and as a result they were cautious and operating at 60-70% of the installed capacity for summer apparels. The manufacturers begin production of summer wear in November. “We start production for summer apparels in November. Out of total output, around 70% is produced on retailers’ order while the remaining 30% is inventory build on our calculations. Having suffered loss in retailing winter wears, the retailers are cautious in placing fresh orders. As compared to last year, the industry is witnessing around 40% decline in orders by the retailers. Considering the present scenario, even the manufacturers are producing around 40-50% less products so that inventories don’t pile up,” said, Bhushan Jain, managing director, Vallabh Fabriks Ltd. Perturbed over cash crunch, the retailers had started the sale season early this year, which hit their bottom lines. Since there margins have already been affected, the retailers are apprehensive in procuring summer wears. Ajit Lakra, president, Ludhiana Knitters Association, said, “The knitters start manufacturing summer wear in November and their production is at peak in December. However, this year, due to cash crunch, many manufacturers in Ludhiana are operating at 60-70% of their capacity.” The manufacturers added that the winter-wear inventory pile-up with the retailers had deferred their purchases and had also resulted in stretched payments. This, in turn, affected the cash flow of the textile industry and impacted the demand for the entire value-chain. Since the textile retailers faced the immediate impact, the apparel manufacturers and other intermediaries in the value chain are also facing the heat now with the reduction in orders due to slower offtake of the channel inventory.
Source: The Tribune
Bombay Dyeing and Manufacturing Company, the 137-year-old textile manufacturer with 25 company-owned stores and franchises across nine towns in Tamil Nadu has big plans for Tamil Nadu focusing now more on retail business. The company has a presence in 350 multi-brand textile stores in the State and plans to expand its foot print to 700 multi-brand textile stores in the next four years. Nagesh Rajanna, Chief Executive Officer, Bombay Dyeing Retail, said that the company plans to expand its distribution network in Tamil Nadu. With Tamil Nadu accounting for about 7 percent of total revenue from textiles, hence a huge market for them. They want to increase it to 10 percent. The company plans to increase it to 75 stores, which will be a mixture of company-owned and franchise model, across 40 towns in the State, by 2020. They will also be entering 20 towns through franchises in the next one year. Last fiscal the company registered a revenue of ₹306 crore.
Source: Yarns and Fibers
Government of India will be providing support to the Tangaliya weavers in Surendranagar district of Gujarat for purchasing looms, with an assistance amounting
to 90% of the price of looms. Tangaliya is a 700-year-old indigenous weave of Gujarat which employs an exquisite technique of weaving, using raw wool yarn. The Union Textiles Minister Smt. Smriti Zubin Iraniduring her interaction with Tangaliya weaver in Surendranagar district of Gujarat and upon listening to their concerns, she made this announcement yesterday evening. The Minister also announced the formation of a special association of Tangaliya workers, which will work for their interest. Expressing appreciation for the Tangaliya embroidery, Smt. Irani said that the work needs to be marketed through international platforms; she requested the district administration to make proper arrangements for the same. The Minister appealed to fashion designers to use the Tangaliya art work for their fashionable garments. She also spoke of Pradhan Mantri Mudra Yojana, exhorting weavers to avail its benefits. The Minister also visited Ahmedabad Textile Industry's Research Association (ATIRA), in Ahmedabad. Smt. Irani commended the achievements of the institute and directed the officials to devise a scheme for the benefit of small and medium industries. Tangaliya a dotted woven textile of Surendranagar district, Saurashtra is found only in Gujarat, is usually worn as a wraparound skirt by the women of the Bharwad shephered community. Tangalia designs are used for preparing Shawl, Dupatta, Dress material and products of Home décor and accessories such as bedsheets, pillow covers etc. The patterns formed during weaving process to create design in dots for floral and geometrical motifs by using cotton or woolen yarn.
Source: Yarns and Fibers
Taking forward the legacy of textile artisanship, the world renowned fashion designer from Ahmedabad, Asif Shaikh, is on a mission to revive and promote heritage textile craftsthat are fading into the oblivion. Having realized that textile crafts can only be kept alive if artisans get their due recognition, Shaikh founded Crafts+Design+Society (CDS) which recently registered as a company known as CDS Art Foundation. CDS Art Foundation will facilitate collaboration between textile artisans and fashion designers. The artisans and designers will not only co-create and innovate but also create contemporary couture with traditional textile crafts such as ajrak, bandhani, pashmina, patola, batik, ikat and kalamkari, among several others. "Textile heritage is part of our culture and if we lose these, we will lose an important aspect of our culture. Our aim is not just to empower artisans, but also to encourage the younger generation in artisan families to learn and continue evolving these heritage crafts. This can only be achieved when craftsmen not only get recognition, but also opportunities to create, innovate and sustain the art," said Asif. CDS Art Foundation aims to educate textile craftsmen on aspects such as innovation and experimentation which they don't usually take up due to limited means. "Instead of giving the artisans a livelihood, we aim to enable them to innovate and create a market for their craft. The goal is to make India's hand-crafted textiles as inspiring as any global brand. This will inspire the younger generation in artisan families to preserve their generations-old textile craftsmanship," said Gauri Wagenaar, committee member, CDS Arts Foundation and an art historian. Walking Hand-in-Hand To give these artisans respect and recognition, CDS curated a fashion show, 'Walking Hand-in-Hand', which was held at the National Institute of Design (NID) in Ahmedabad last year. The collection shown, a line of garments, was co-created by artisans and designers in a particular craft, who also walked the ramp and explained their craft. Part of the collection was also showcased at Lakme Fashion Week in Mumbai last March. 'Walking Hand-in-Hand' will be held again this year as part of Archiprix 2017 at Cept University on February 9. The couture presented at the show will comprise textile crafts such as bani thani paintings from Rajasthan, bandhani and Bhujodi from Bhuj, ajrakh from Kutch, batik from Mundra, Kashmiri weaves and ikat from Telangana and Maheshwari from Madhya Pradesh, Banarasi weaves, among others. "Before each collection, the craft will be explained in brief with details of its origin, so people know what it is about. Fabrics are an integral part of architecture and therefore, Archiprix 2017 will be a good platform to showcase traditional Indian textile crafts before world renowned architects," explained Asif.
Source: The Times of India
It seems the things once read and imagined in science fiction have been brought to the real world thanks to many relentless and inquisitive minds. Recently, scientists have developed antibiotic spider silk that not only sounds cool but will help more lives if introduced to the rest of the world. Researchers from the University of Nottingham were able to develop a much practical use of spider silk by developing an antibiotic synthetic version that can be used in tissue regeneration, wound healing and even drug delivery.
The study, published in Advanced Materials, was able to artificially produce spider silk synthesized by E. coli, and then would be attached to molecules of antibiotics or fluorescent dyes. The process used by the scientists is called click chemistry. Click chemistry is when chosen molecules are 'clicked' into place on the silk protein before or after it is turned into fibers. This means that the process can be easily tailored to specific needs and more than one type of molecules can be "clicked" into the synthetic spider silk. The scientists found out that the antibiotic molecules can be slowly released from the spider silk, and it can retain its anti-bacterial properties for at least five days. "Our technique allows the rapid generation of biocompatible, mono or multi-functionalized silk structures for use in a wide range of applications. These will be particularly useful in the fields of tissue engineering and biomedicine", Professor Neil Thomas from the School of Chemistry said in a report by Phys.org. The synthetic spider silk is strong, biocompatible, and biodegradable and does not cause any allergic or inflammatory reactions. One of the possible uses of the antibiotic synthetic spider silk is in treating slow-healing wounds in diabetic patients. The synthetic spider silk will not only help treat the wound due to its antibiotic properties, it can also help regenerate cells and tissues to close up the wound. The inter-disciplinary team under Professor Neil Thomas from the School of Chemistry and Dr. Sara Goodacre from the School of Life Sciences have lead Ph.D. students in developing and exploring other uses of the synthetic spider silk. The antibiotic synthetic spider silk is just the beginning of this cool scientific adventure.
Source: Business Line
Welspun India, textile manufacturing company from India, is interested to invest and join Ethiopia’s textile industry. Such was disclosed by the company’s chairman, B. K. Goenka after he held discussions with Hailemariam Dessalegn, Prime Minister of Ethiopia, on the sidelines of Davos World Economic Forum. Speaking at the occasion, the Chairman explained that he realized the favorable investment environment for the textile industry in Ethiopia. He also noted, the attention given for the construction of industry parks by the country has made him consider investing in Ethiopia. Goenka furthered that his company plans to acquire a shade in one of the industrial parks and commence textile production.
Source: Ethiopian News Agency
The Tiruppur Exporters’ Association (TEA) has requested the Central government to upscale the textile“We have a self-groomed labour force rather than a well-groomed force. We are in the globalised market era and we have to compete with countries like Korea, Vietnam, skill industry of Tiruppur with the upcoming Union Budget 2017-18. Budget should carry a provision for one-time intervention targeted at the skill inventory of the textile hub comprising 6 lakh workers, where upscaling could be facilitated. Japan and China. All these countries have 95 per cent and above technically skilled labour force and we are competing with them in the global market. So, we request the government to come forward to upscale the existing skilled inventory to the required international standard,” Raja M Shanmugham, President of TEA told Fibre2Fashion in a telephonic interview. He added that upscaling the skilled force will help the Indian products to gain value addition and the image of Indian products in the international market will grow. “Right now, we are at the lowest level. The international markets perceive Indian products as cheap and inconsistent in quality. It is a fact because we do not have much skilled force deployed in our manufacturing activities. The attention of the government should be on upscaling the skill inventory to enable them to reach the international standards. So that will help the manufactured products to have consistency on the quality front,” noted Shanmugham. When these good quality products reach the global market, they automatically increase the brand value of the Indian products. So, the business will also grow and we can ensure the minimisation of wastages at the manufacturing site. Automatically the manufacturing industry will become a profitable one. TEA also requests the government to build 1 lakh houses for the textile workers in Tiruppur clusters and develop labourer supportive infrastructure. Shanmugham also said that the hub should be provided with an exclusive research division or R&D platform to take the industry forward to the next level for bringing in the technical textiles arena and all other untouched arenas. A special board should also be established in Tiruppur to act as a connecting body between the policy-making system and the ground level. We request the government to develop a permanent structure, said Shanmugham.
Source: Fibre2Fashion
Planet Textiles 2017, the leading sustainable textile summit for the global textile sector, will kick off from May 24 in Bengaluru. The event on textiles and sustainability
“Planet Textiles is the leading international event on sustainability in the textile sector because it discusses real-world practical issues and ideas on how the global supply chain can move to a more sustainable future,” said Scott Miller, director, business development at the Sustainable Apparel Coalition. “The event last year was a huge will discuss about various crucial issues including textile wastewater pollution, chemical management and natural resource conservation including both energy and water use. success with nearly 450 delegates from 33 countries and featured some inspirational presentations from industry leaders, along with tangible outcomes.” Senior industry executives and speakers from various brands such as VF Corporation, Nike, Marks & Spencer, Puma, Gap, Levi Strauss, along with many others, had participated in the 2016 summit held in Copenhagen. The textile industry programme will be co-organised by MCL News & Media, publisher of Ecotextile News, and the Sustainable Apparel Coalition in support with long-time partner Messe Frankfurt.
Source: Fibre2Fashion
The edgy United States-based brand, American Apparel, which was purchased by Gildan Activewear for $88 million, will be shutting down all of its 110 stores in the United States. The brand will also close its distribution center in La Mirada and production facilities in Garden Grove and South Gate. Gildan Activewear bought American Apparel brand’s intellectual property and a portion of its manufacturing facilities. It means that the factories’ 3,500 employees and retail staff are no longer needed. With the outstanding marketing strategy and provocative ads, Los Angeles-based brand American Apparel managed to gain big success within the United States and become famous worldwide, while many brands were running overseas in the middle of 2000’s. American Apparel sold it’s intellectual property at the bankruptcy auction to Canada-based Gildan Activewear after a 20 years of being one of the biggest U.S. garment makers. However, although it was one of the most successful brands and biggest U.S. garment makers for 20 years, American Apparel sold the brand in a bankruptcy auction to Canada’s Gildan Activewear. American Apparel filed for bankruptcy two times in last two year. Although the brand hired a new CEO back in 2014, it was not enough to help fix the damage done to the company after the founder of American Apparel, Dov Charney was accused of sexual harassment. Gildan Activewear bought American Apparel’s IP for $88 million and a part of its manufacturing equipment. However, Gildan Activewear is not interested in American Apparel’s 110 retail stores in the United States, distribution center or production facilities. “This was always about buying assets out of bankruptcy,” Gildan spokesman Garry Bell said. “The reality is this wasn’t a purchase of an ongoing concern.” A lot of Gildan Activewear business is affordable basic pieces that can be screen-printed. The company saw an opportunity in American Apparel to create a premium fashion brand that will go along with the print-wear business of Gildan Activewear. “This company has been a dead man walking for over two years. It’s a casualty of gross mismanagement at the top and missing-in-action board governance,” said the president of research firm Customer Growth Partners, Craig Johnson. Two days ago, the closing of the stores and factories began. 2,400 employees are out of the job since Monday and the status of the rest 1,000 employees is yet unknown. Former employees lined up outside of the company’s factory in Los Angeles to receive their final checks. Founder of American Apparel, Dov Charney, said he will hire a few American Apparel’s employees for his new T-shirt business, but not near enough to employ all the former workers. “The company issued a WARN Act notice several months ago, letting employees know that depending on the buyer of the business, a sale could result in eventual shrinkage of some business areas. American Apparel has been in constant written and verbal communication with employees, letting them know how the sale process has been going all along, and what to expect. Because American Apparel cares deeply about its employees and their futures, the company has been offering high-quality career mentoring and a resource center, and a job fair to all employees at no cost to them, on-site for the past several weeks. They are still able to take advantage of these resources today,” a company spokeswoman said Monday.
Source: Adina Zuga
Xeros technology group plc, the developer and provider of patented polymer based systems with multiple commercial applications, will focus on the textile sector for the development of its technology. The group currently applies its polymer technology platform in cleaning technologies (including commercial and domestic laundry) and tanning technologies. In textile technologies, Xeros has started small-scale trials. All early indications are that Xeros' technology can reduce the chemistry, water consumption and effluent in textile manufacturing. Work is now underway to cover application areas with intellectual property registration, said the company in a statement. “We have identified textiles as the third area of focus. It is a sector which is very water and chemical intensive and therefore holds significant potential for our technology,” said Mark Nichols, chief executive of Xeros. “We are in advanced discussions with a number of globally recognised brands as we look to accelerate the adoption of our technology. We look forward to reporting on further progress in 2017. We are confident of increasing the penetration of our chosen markets,” he added. (KD)
Source: Fibre2Fashion
AWI The Eastern Market Indicator (EMI) managed to forge ahead by a further 12ac clean/kg to conclude this week’s trading at 1434 ac clean/kg, the highest closing level ever recorded in Au$ terms. This record was set despite the very large offerings of over 56,000 bales and disadvantageous foreign exchange rates in all of the major trading currencies. The EMI in US dollar terms also shifted upwards to 1079usc clean/kg a gain of 17usc clean/kg, proving the current strong demand for Merino types, and particularly the finer end of that breed, is ruling the overall market direction within the makeup of the EMI, the Australian Wool Innovation said in its weekly wool market report. Substantial wool top sales have apparently been made of the finer microns. This has depleted global stocks that have been held for some time and those top makers are now in a position to restock, this week’s report said. In Melbourne, frenzied buying witnessed in the previous week was very much apparent on Tuesday, but was much more type restricted this week. All Merino types finer than 19 micron sold to levels 50 to 90ac higher than the previous week’s close, but on the other hand, all wools broader than 19.5 micron showed signs of retreating. As the 2 other centres of Fremantle and Sydney joined selling on Wednesday this trend became more evident and continued throughout the rest of the selling week. The EMI reached a record high by the conclusion of sales on Wednesday. The general sale results by the conclusion of the week showed all Merino qualities 19 micron and finer 35ac to 85ac dearer with the finest types best supported, but 19.5 to 22 micron wools all were on par to 25ac cheaper with the broader edge most affected. Merino skirtings sold in line with their fleece counterparts and the finest pieces and bellies were extremely well sought. Cardings sold fully firm to slightly dearer throughout and all of the crossbred selection had a mixed week where prices initially fell but then staged a semi recovery on the final day. Price levels were par to 10ac cheaper for the week. Next week, around 47,000 bales will go to auction. “Given the slackening of the buying intensity and pressure seen on the final day of selling this week, a consolidation at best of the market is expected over the next 2 weeks. Chinese interests all depart for the Chinese New Year holidays commencing January 28th, so a more relaxed market environment is expected,” the report said.
Source: Fibre2Fashion
Sri Lankan textile major Teejay has become the first company in the country to produce green fabric. In a bid to create carbon neutral products, Teejay has associated with Carbon Consulting Company (CCC). The association will calculate footprint of a selected range of their fabrics. This sustainable initiative is one of its long term goals.
Beginning with this green initiative, Teejay intends to implement the concept of sustainability in all areas of its business. Since last six years, Teejay has been working with world’s best offset retailer Natural Capital Partners to balance the carbon emissions from its production. Meanwhile, together with one of the leading Apparel Groups in the Island and their client, UK's Marks & Spencer (M&S), it is also trying to quantify and control carbon emissions from a garment produced using CarbonNeutral fabric from Teejay's Spring / Summer 2017 collection, according to Sri Lanka media.Teejay has already completed the calculation of carbon footprint for one of its garments, including fabric and raw materials, production and transportation process. The company in association with CCC will now focus in the next phase which will focus the areas of retail, distribution and consumer use and disposal phases of the garment.
“This is the first time that such a product is being developed in this region and all credit goes to the Teejay team for conceptualising it and the level of coordination, they have managed to achieve,” said Sanith de Silva Wijeyeratne, CCC CEO. “Sustainability is a key pillar on which we build our strategy, and this revolutionary new product is yet another demonstration of our leadership in this arena. We are proud to work with these global partners to make the world a greener place,” said Teejay's marketing COO Rodney Arland.
Source: Fibre2fashion
Bangladesh is expected to earn over $60 billion in exports by the year 2021, said the country’s commerce minister Tofail Ahmed. He said that the readymade garment industry is the prime sector of the country, accounting for 82 per cent of the total foreign currency earned. The sector also has a lot of potential for further growth, according to the minister. Overall export earnings touched $34.2 billion in the previous financial year and the upward trend can result in the earnings exceeding $60 billion by 2021, said Tofail while addressing the audience during the opening ceremony of Garmentech 2017 as the chief guest of the fair. The country had earned $3.08 billion in export earnings in 1996, which increased to $6.7 billion by the end of the tenure of Awami League, according to a Bangladeshi news agency. The 16th Garment and Allied machinery trade show, 8th Yarn and Fabrics Sourcing Fair 2017 and 8th Garments Accessories and Packaging Exposition (GAP Expo 2017) are simultaneously taking place during the four-day Garmentech fair. It is jointly organised by ASK Trade and Exhibitions Pvt. Limited, Zakaria Trade and Fair International and Bangladesh Garments Accessories and Packaging Manufacturers and Exporters Association (BGAPMEA). Abdul Kader Khan, president of BGAPMEA said at a press conference that the trade shows will help the country’s apparel manufacturers to achieve the industry’s target of exporting textile worth $50 billion by 2021. He also said that manufacturers of apparel accessories will need to earn $18 billion from exports to achieve the target. Close to 400 companies belonging to over 24 countries including China, India, Sri Lanka, Singapore, Germany, Italy, US, UK, Canada, Sweden, Spain, France, Thailand and more are displaying their textiles, readymade garments, yarn and other products at the Garmentech textile fair.
Source: Fibre2fashion
US based Huntsman Corporation has decided to retain the Textile Effects business and exclude it from the planned carving out of the Pigments and Additives business, which will be called Venator Materials Corporation. The decision to not spin off the Textile Effects business was taken following the recovery of the Pigments and Additives business. According to Huntsman, recovery of titanium dioxide prices and the identification of business improvement opportunities, which will generate more than $75 million in annual EBITDA, are expected to expand the financial strength of Venator Materials. Venator shares will be traded on the New York Stock Exchange after the share distribution to Huntsman's shareholders, which may be completed in the second quarter of 2017. “Improved titanium dioxide pricing combined with the identification of business improvement opportunities that are incremental to current earnings are expected to more than offset the free cash flow that Venator would have received from the Textile Effects business," CEO at Huntsman Peter Huntsman said.
Source: Fibre2fashion
The Global Enterprise is organizing the next edition of GTex International B2B Textile Machinery Brand Expo after continuous and mega success of previous year's GTex Expo in Karachi and Lahore. The GTex Expo will open from today (Friday) in Karachi. Approximately more than 40,000 B2B corporate visitors from all over Pakistan, will visit GTex Karachi Expo in 3 days and the exhibitors will ultimately get the optimum response under the unique platform of GTex. President FPCCI Zubair F.Tufail, along with Dr Mirza Ikhtiar Baig, Former Advisor to PM on Textile and Chairman Pakistan Textile City Limited will inaugurate the GTex on Saturday morning at 11 am. Later Mayor Karachi Waseem Akhtar will attend the ribbon cutting ceremony along with diplomats, Consul Generals and high profile dignitaries of the Industry in the afternoon, said Mujib Siddiqui, Chief Executive Officer Global Enterprise in a statement issued here on Thursday. General Manager Global Enterprise Ghousia informed that GTex is the largest and the most successful expo of its kind in the region at which all the leading international brands from Textile, Garment, Leather, Digital Printing, Embroidery Machinery, Accessories, Chemical, Dyes and Energy, sectors have been participating. As per their previous practice, to display the latest innovations from various countries, i.e. China, Japan, Australia, Taiwan, Italy, Turkey, Germany, Switzerland, Spain, Sweden, Netherlands, Czech Republic, India, Hong Kong, France, Austria, Iran, Korea, Ireland, Malaysia, Belgium, UK, USA, Singapore etc with more than 670 major partner brands. The GTex expo will run from 20 - 22 January 2017 between 10 am to 7 pm at Expo Centre Karachi.
Source: Yarns and fibres
President-elect Donald Trump’s policies aim to achieve annual economic growth of 4 per cent, the high end of previous goals set by him and his team, according to the White House website updated as he took the oath of office on Friday. “To get the economy back on track, President Trump has outlined a bold plan to create 25 million new American jobs in the next decade and return to 4 percent annual economic growth,” the website reads in a page titled “Bringing Back Jobs And Growth.” The strategy includes lower tax rates and less regulation, it says. Another page reiterates pledges Trump made on trade policy during the campaign, saying the president’s strategy “starts by withdrawing from the Trans-Pacific Partnership and making certain that any new trade deals are in the interests of American workers.” Trump is also “committed to renegotiating” the North American Free Trade Agreement. The US economy has expanded at an average annualised rate of 2.1 per cent since the last recession ended in June 2009. Economists expect gross domestic product to grow 2.3 per cent both this year and next year, according to the median estimates in a Bloomberg survey. The last time US growth topped 4 per cent in a full calendar year was in 2000, at 4.1 per cent. Trump in September called for a “national goal” of 4 per cent economic growth while also saying his plans would create an average of 3.5 per cent expansion over 10 years. His Treasury secretary nominee, Steven Mnuchin, told lawmakers Thursday in his confirmation hearing that “we should be able to get to” a sustained rate of 3 per cent to 4 per cent growth.
Source: Business Standard
