The Synthetic & Rayon Textiles Export Promotion Council

MARKET WATCH 11 APRIL, 2017

NATIONAL

INTERNATIONAL

Rupee may surge to 63/$ in a month, hopes of first sovereign rating upgrade in over 6 years: ET Poll

MUMBAI: Industry must be prepared for a stronger rupee in the coming months as a cocktail of economic and political factors revive hopes of a sovereign rating upgrade for the first time in over six years, shows an ET poll of 15 leading forex traders and strategists. Majority of participants in the poll believe the local currency could appreciate to 63 levels in the next one month or so before dropping to 65 levels by June. It may end the year at the same level though the scope for further appreciation cannot be ruled out. One brokerage said the currency could even touch 60 to a dollar in the coming months, buoyed by strong foreign fund flows and an improved economic climate. This marks a dramatic turnaround in trader sentiment since November last year, when many expected the rupee to trade at 70 to the dollar at a time the global market was betting on the greenback gaining strength following Donald Trump’s victory. "I expect a possible rating upgrade in the third quarter of FY18 given the way macro parameters are panning out," said Ashish Vaidya, head of trading and ALM at DBS Bank. "With implementation of GST (goods and services tax) and hopefully a resolution of bank bad loans problem, a healthier and sustainable investable economic environment will likely evolve sooner. Along with other expected reforms, all this could culminate into a sovereign rating upgrade adding to overseas investment inflows. A bout of sustained inflows would push the rupee up this year." The rupee has gained about 4.30% against the dollar since February 7, a day before the Reserve Bank of India announced the shift in its stance from ‘accommodative’ to ‘neutral’ in its bi-monthly monetary policy. A rising rupee means more per-unit dollar realisation. It is nearly up 5% in 2017. The rupee lost about half a per cent to the dollar to close at 64.56 on Monday amid suspected RBI intervention. In the past month the dollar index, which measures the unit against six other major currencies, was little changed at 101.2 despite expectations the US currency will gain with Trump at the helm. But things have turned out differently. Global investors have been optimistic about India’s economic expansion and corporate earnings as it continues to gallop at more than 7%. India is expected to grow 7.4% this financial year compared with 6.7% a year ago, with risk evenly balanced, RBI said in its bi-monthly monetary policy. This year, foreign portfolio investors have pumped Rs 85,108 crore into debt and equities. In contrast, they net sold stocks worth Rs 23,079 crore in the whole of 2016, according to data from National Securities Depository Limited. To encourage foreign funds, the FPI investment limit in central government securities has been raised to Rs 1.85 lakh crore from Rs 1.52 lakh crore. "As long as India offers relatively higher rates, FPIs will keep coming. RBI’s latest reverse repo increase has added to the buoyant sentiment among overseas investors," said MS Gopikrishnan, head of foreign exchange, rates and credit trading at Standard Chartered Bank. Bharatiya Janata Party’s impressive performance in the recent Assembly elections has strengthened the rupee, which has reported its best quarterly performance in nearly eight years. The possibility of fast-paced reforms and greater investment in infrastructure have whetted investor appetite as they look for better yields amid political and financial stability. Franklin Templeton Investment alone bought Rs 16,000-18,000 crore of domestic bonds in the past three-four weeks. "The rupee will gain from US policies," said Satyajit Kanjilal, founder of Forexserve, who forecasts the rupee touching 60 by the year end. But the rising rupee squeezed exporters’ earnings since they had left unhedged positions anticipating a slide in the local currency. Small to medium exporters are now seen selling dollars in the forward market with one to 12 month maturities to avoid receiving less rupees for their dollar earnings. The rise may prove beneficial in the short term for Nifty 50 companies at the aggregate level considering the sample’s negative exposure to foreign exchange movements. In addition, since just over a third of India Inc’s forex borrowings are hedged, a stronger rupee should be able to reduce debt servicing costs to an extent.

Source: The Economic Times

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Increased consumption to accelerate India's growth: ADB

Increased consumption, as more new bank notes are put in circulation, and as planned salary and pension hike for state mployees are implemented, will accelerate the growth of Indian economy. The country’s GDP is likely to expand 7.4 per cent in fiscal 2017 and 7.6 per cent in fiscal 2018, says the Asian Development Bank (ADB) in its latest report. “inflation, meanwhile, is expected to accelerate to 5.2 per cent in FY2017 and 5.4 per cent in FY2018 as the global economy recovers and commodity prices rebound,” the Manila based organisation says in its ‘Asia Development Outlook (ADO) 2017 report. The public sector will remain the main driver of investment as banks continue to wind down balance sheets constrained by high levels of stressed assets. Exports are forecast to grow by 6 per cent in the coming year, according to the report. The assessment notes risks from higher oil prices as India imports nearly 80 per cent of its fossil fuel needs. A rapid increase in the price of oil could undermine the country’s fiscal position, stoke inflation, and swell the current account deficit. The report estimates that a $1 increase in oil prices raises the import bill by nearly $2 billion. In FY2016, rising oil prices resulted in a 37.6 per cent increase in India’s import bill. To mitigate India’s vulnerability to oil price swings, the government has proposed reducing dependence on imported oil by 10 per cent over the next 5 years through more efficient domestic production and increased private investment into the sector.

Source: Fibre2fashion

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India, oz committed to early conclusion of CECA: leaders"

India and Australia on Monday reaffirmed their commitment to the conclusion of a commercially-meaningful Comprehensive Economic Cooperation Agreement (CECA), which addresses the priorities of both sides. In a joint statement issued at the end of talks between Prime Minister Narendra Modi and his Australian counterpart Malcom Turnbull, the two countries expressed their keenness to secure a timely conclusion of a high-quality Regional Comprehensive Economic Partnership (RCEP). “RCEP can provide a boost to regional economic confidence in a time of global uncertainty — but to do so it needs to deliver commercially meaningful outcomes for business,” said the statement. Earlier, at a joint press event with Turnbull, Modi said they reviewed the entire gamut of ties and took many “forward looking” decisions, including one on early holding of the next round of talks on comprehensive economic cooperation agreement. Emphasising on peace and stability in the Indo-Pacific region, Modi said challenges like terrorism and cyber security require global strategy and solutions. Both countries at the end of bilateral and delegation level talks inked six MoUs, including on cooperation in fighting international terrorism and on civil aviation security, cooperation in the field of environment, climate and wildlife; cooperation in the field of sports and Indian Space Research Organisation (ISRO) with Geoscience Australia on implementation arrangement on cooperation in earth observation and satellite navigation. Turnbull arrived on Sunday on a four-day visit, his first to the country after assuming office in 2015. His predecessor Tony Abbott had visited India in September 2014 and this was followed by Modi’s visit to Australia in November that year. Both leaders inaugurated the TERI-DEAKIN Research Centre on Nano and Bio Technology, which is a classic example of the kind of cutting-edge science and technology cooperation that is happening between the two countries. The Australia-India Research Fund of nearly $100 million has focused on collaborative research projects in the areas such as nano-technology, smart cities, infrastructure, and agriculture and disease control. While Modi noted that Australia was ready to supply uranium to India, Turnbull said his government was looking forward to exporting uranium to India “as soon as possible”. Though it seems increasingly likely that will be without a formal agreement for some time yet. The coalition government had previously held hopes the India-Australia trade deal could be sealed by the end of 2015 and then end of 2016. Welcoming India’s membership to the Missile Technology Control Regime (MTCR), Turnbull noted Australia’s strong support for India’s membership of the Nuclear Suppliers Group. Australia also expressed its support for India’s membership of the Australia Group and the Wassenaar Arrangement. The two welcomed both countries’ increased engagement with ASEAN, including recent milestones and achievements in their respective relationships, forthcoming leaders’ summits in both countries with ASEAN, and noted the growing strategic importance of Southeast Asia. They recognised ongoing cooperation in other regional bodies such as the ASEAN Regional Forum, and ASEAN Defence Ministers’ Meeting Plus (ADMM+), and the Asia Europe Meeting. The visiting leader reiterated Australia’s support for India’s membership of the Asia Pacific Economic Cooperation forum.

Source: Financial Express

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Tirupur is getting back on its feet

With a rise in exports, job opportunities for skilled workers are looking up in the textile hub It takes about an hour’s train ride to reach Tirupur from Coimbatore. The mad rush at every station en-route is perhaps an indication that the textile hub is getting back on its feet after the impact of demonetisation. Signs of labour shortage are visible at Tirupur. Be it notices on vans that transport women employees from in and around the town, to the unit or bill boards at the gate of many an undertaking, the employment offer (Velaikku aatkal thevai) is open and loud. But talk to a few employers and one realises that while there is demand for labour, it is mainly for skilled jobs including tailoring. That is why the Tirupur Exporters' Association (TEA) has tied up with government’s skill development agencies to train workers. Recently, the TEA joined hands with the Odisha Skill Development Authority to train workers from the state for specific skills required in Tirupur. Little wonder that landing a job is challenging. “The head hunters do a lot of check and counter-check before placing, but many of us do not have an offer letter or employment certificate. The employer probably maintains a file for record purpose,” said a youngster, preferring anonymity. At the same time, attrition remains high at 15-17 per cent as women, who make up for much of the workforce, take a maternity break. In recent years, the sector has been managing with migrant workforce. The textile industry, the second largest employment generating sector, at present employs 80 million people in the country. Industry leaders say thatfor every additional export of $1 billion, the sector would be able to add four lakh jobs. Companies are hoping that after the Free Trade Agreement, which is in the works, with the EU, Australia and Canada,exports would almost double in three years, from $17 billion in 2015-16, generating lakhs of jobs. This is music to the ears of those in Tirupur. The country’s largest textile exporting hub employs six lakh people, and will look to add more. Its export turnover is expected to rise from ₹23,000 crore in 2015 to ₹25,000 crore in 2016. The knitwear hub is targeting a turnover of ₹1 lakh crore by 2020.

Source:  Business line

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Production cut looms large in India's cotton spinning sector

Weak demand, sharp increase in production costs hit margins, rising rupee impacts exporters Cotton spinners in India are considering production cuts during the current financial year to sustain profit margins, which were under pressure due to a sharp increase in the price of cotton over the last few months. Experts estimate an average production cut of 15 per cent for financial year 2017-18, if the current scenario continues. A recent study by rating agency Care estimates India's cotton yarn production at 3,936 million kg for financial year 2016-17, nearly five per cent lower than 4,138 million kg output reported in the previous financial year. For the past few years, cotton yarn production has increased by 3 -3.5 per cent to meet domestic demand and exports. India's cotton-spinning industry has been struggling with profitability for over two years due to a sharp decline in yarn exports following a slump in Chinese demand. Chinese textiles mills, which used to manufacture fabric after importing yarn from India, have now slowed down following the government's policy of discouraging energy-intensive industries. This has hit India's cotton yarn manufacturers hard. "Many spinning mills, especially in the unorganised sector, are struggling with profitability due to a sharp increase in production costs. Not only have prices of raw materials like cotton gone up, labour cost has also risen substantially over the past few years. Interestingly, spinning mills have not been able to pass on the increase in production costs due to weak demand. Though, demand has revived marginally during the past few months, small and medium size spinning mills would have to undergo a production cut for sustainability. While it is difficult to quantify, a cut up to 15 per cent in India's spinning sector is possible," said B K Patodia, an industry veteran and former chairman of the Cotton Textiles Export Promotion Council (Texprocil). While cotton prices have risen by eight per cent since January 2017 with the benchmark Shankar 6 variety currently trading at Rs 12,035 a quintal, overall cost of production has also gone up by 8-10 per cent. Over 5 per cent appreciation in the rupee over the past three months has also impacted exporters' receivables proportionately. A recent Care Ratings report, however, estimates a five per cent decline in India's cotton yarn production for 2016-17 at 3,936 million kg as compared to 4,138 million kg for 2015-16. After declining by 10 per cent in 2011-12, cotton yarn production rose by over 14 per cent y-o-y to 3,583 million kg in 2012-13. In 2013-14, production was up by about 10 per cent to 3,928 million kg. High cotton prices and easy availability of MMF (man-made fibres) at competitive rates led to slower growth of cotton yarn production, the report said. Cotton yarn demand in India grew at a healthy pace in 2015-16, supported by domestic demand and yarn exports. In 2016-17, demand is expected to be sluggish as derived demand and direct yarn exports will be under pressure. Also, with alternatives being explored for crude oil such as shale, prices of crude oil are largely expected to be stable during the year. Hence, demand for cotton yarn is set to face stiff competition from its easily available substitute -- manmade fibres (synthetic yarns). "When production costs increase, large textile mills change the product mix to maintain margins and maintain the level of operations due to their constant fixed costs. But, small and medium size units normally go for production cuts," said R K Dalmia, President, Century Textiles and Industries Ltd. An Icra report said that the growth in spun-yarn production, including cotton, blended and man-made spun yarns, declined to a five-year low in FY2017, keeping production almost flat vis-a-vis the previous year. Further, the improved competitiveness of polyester staple fibre (PSF) vis-a-vis cotton resulted in a five per cent YoY growth in non-cotton yarn production in FY2017, while cotton-yarn production is estimated to have declined by two per cent. "The domestic spinning industry remains highly dependent upon exports, with a third of India's cotton yarn having been exported during the past five years. Further, high dependence on exports to China and the resulting sensitivity of India's exports to China's policy on reserve cotton stock warrant a cautious outlook on India's yarn exports, until Chinese cotton stock levels subside to historical average," said Jayanta Roy, Senior Vice-President, and Group Head, Icra. Icra said that as overall yarn demand is expected to remain tepid, spinners may have to sacrifice capacity utilisation or contribution, and hence profitability is likely to remain under pressure. In addition to demand pressures, the spinners continue to face challenges on account of the high cotton prices.

Source: Business Standard

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Cotton trade absorbed huge amounts of black money

Traders, money lenders laundered crores of rupees post-demonetisation. While the common people continue to return morose from ATMs, those associated with Adilabad’s huge cotton trade are laughing all the way to the banks, having ‘successfully’ laundered hundreds of crores of rupees in black money due to demonetisation. The timing of the ban on ₹ 500 and ₹ 1,000 currency notes turned out to be conducive for the latter which is becoming evident now when the government is busy collecting taxes on suspect transactions which took place during the period of demonetisation. It is a well-known fact that money lenders, usually cotton commission agents, disburse large sums of money to cotton farmers during kharif season charging an interest rate of as high as 25 per cent for a six to seven-month period. This ‘advance’ payment is recovered when the farmers sell their produce to traders with the commission agents acting as middlemen. There are about 200 licensed and unlicensed cotton commission agents and cotton purchasers operating in Adilabad market alone. Cumulatively, they disburse an estimated ₹ 200 crore by way of advance payment to the farmers to purchase seed, chemicals and make payments to labourers, all until September. Recovery time - “By the time demonetisation was announced on November 8 last year, the disbursal of money had been complete and it was only recovery time. An estimated ₹ 100 crore by way of the remaining black money with the money lenders was laundered through benami as well as valid bank accounts of farmers by way of payments made to them,” revealed a source in the marketing department. In addition to the existing bank accounts of farmers, over 3,000 more zero-balance accounts were opened during the period in the names of labourers working with individual traders. One trader opened as many as 300 bank such accounts in a single bank on a single day, all in the name of labourers employed by him. As the government decided to overlook all banned currency bank deposits under ₹ 2.5 lakh, it helped the hoarders to convert at least ₹₹ 60 crore of the leftover black money into white through newly opened accounts. More black money was laundered by way of actual payments made to farmers in banned currency notes. Probe needed - “All that the government needs to do is to investigate the accounts opened during the demonetisation period and the deposits made into them,” suggested the source in marketing department. “It is actually in the interest of farmers as the government can streamline cotton trade if it controls the illegal activities,” he added.

Source:  The Hindu

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Here’s why Credit Suisse has initiated coverage on Welspun India

The research firm has highlighted the company’s growing market share, advantage in home textiles and 15 percent revenue growth in FY19 as few of the reasons behind the call. Shares of Welspun India soared over 8 percent intraday on Monday after Credit Suisse initiated coverage on the stock. In its report, the research firm initiated coverage with an outperform rating and a target price of Rs 115. The firm highlighted that Welspun was a leading player in cotton towels and bed sheets with a continuously growing market share. Furthermore, while there is an expectation of 8 percent CAGR by global home textile market, India has an advantage in cotton home textiles due to excess supply and competitive production costs. On the financial front, the company posted 17 percent revenue CAGR over FY12-16 and the next leg of growth is likely to be driven by new products and channels, geographies and innovative, branded products, the brokerage analysts at the firm wrote in the report. The research firm expects 15 percent revenue growth in FY19 and over 20 percent growth in earnings per share (EPS). "The new flooring capacity will also be operational in FY20 and can add 8-9 percent to FY20 revenue growth", it said. Credit Suisse also estimated 6 percent FY19 free cash flow yield. Credit Suisse saw global trade barriers, high customer concentration and volatility in cotton prices or currency to be the risks. "Provenance issues of Egyptian cotton sheets led to 13% revenue loss. However, Welspun handled the situation well, and this should be out of the base in second half of FY18", it said in the report. The stock has seen strong movements in the past one month, posting gains of 2.53 percent, while its 15-day gain stood at 10.76 percent. In the past three days, the stock has risen nearly 4 percent. At 09:17 hrs, it was quoting at Rs 89.05, up Rs 4.85, or 5.76 percent on the BSE. It touched an intraday high of Rs 91.10 and an intraday low of Rs 88.50.

Source: moneycontrol.com

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Yogi Adityanath’s blanket boost to increase revival chances for Lal Imli?

LUCKNOW: Chief minister Yogi Adityanath's bid to revive sick and defunct blanket factories in Uttar Pradesh by infusing new technologies for manufacture may serve as a leg up to the state's century old woollens and worsted blanket brand, Lal Imli. The UP CM had, during a review meeting with officials from the department of handicrafts and khadi on Thursday, directed officials to revive defunct blanket producing units in UP by infusing fresh technology in sick units. He also said revival packages shoould be drawn up for such units. The Kanpur-based mill, run by the British India Corporation was founded in 1876 and was one of the most successful woollen mills in the British era. After flourishing for around 100 years, the mill gradually started accruing losses after Independence and liabilities piled up compared to revenue generated. It first went into the red in the early 80s and was finally declared sick and referred to the Board of Industrial and Financial Reconstruction (BIFR) in 1991.Despite several attempts to revive the sick unit, the company finally has steadily cut production of its woolen products, one of which was worsted blankets. Once a textile hub, around 2001, Lal Imli was nominated for a revival package by BIFR.The revival package, however, came with many riders. It included a pay cut, and orders that no fresh recruitments would be allowed. In 2013, Lal Imli, then producing less than 5% of what it used to in its hay days, was promised fresh finance for raw material from National Textile Corporation (NTC).

Source: The Times of India

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Linen Club plans 40 EBOs

Linen Club will open 40 exclusive stores in various parts of the country. The brand offers a wide range of pure linen and exotic linen blends, printed and embroidered linen fabrics for men and women, which consist of shirts, trousers, suits, ethnic wear, skirts, tops, jackets etc. The brand has accessories such as stoles, laptop bags, ladies bags and scarves. Fabrics are made from raw material sourced from France and Belgium and processed at Linen Club’s state of the art facilities to ensure the highest quality standards. Linen Club is a premium linen fabric brand from the Aditya Birla Group. The domestic linen market is estimated between Rs 1,500 and Rs 2,000 crores, of which Jaya Shree Textiles, which owns Linen Club, has a market share of 40 to 45 per cent. Linen Club is growing 10 per cent year-on-year. Linen is promoted as a skin-friendly fabric. It is also anti-bacterial by nature. With its moisture absorption capacity which is double that of cotton, linen fabrics keep one cool in summer and warm in winter. Designer Rohit Bal endorses Linen Club. The linen garment sector is expected to grow at nine to ten per cent annually.

Source: Fashion United

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Flyrobe to open more stores across various metros

Flyrobe is expanding to offline stores. In February, the Mumbai-based company opened a store in Delhi and now it plans to open up eight more stores by December 2017 across Bangalore, Delhi and Mumbai. The expectation is these would contribute 20 to 25 per cent revenue. Flyrobe is an online platform which rents out designer apparel and accessories. Flyrobe currently has over 5,000 products, procured from over 80 designers. While the retail price of a piece of apparel can range between Rs 8,000 and Rs 2,00,000, Flyrobe rents it out for between Rs 799 and Rs 30,000 for four days, sharing 50 per cent of the rent earned with the designer. Flyrobe serves customers in Bangalore, Delhi, Hyderabad and Mumbai. Several start-ups that began online have also set up an offline presence. In going online to offline, while the core of business remains online, offline stores act as a sales touch point and a way of brand building. A user sees 300 to 350 products in the store, tries some of them and can make an online order from the store. This also builds the consumer’s trust in the brand that in case they don’t find something in the store, they can go through a wider catalog online and directly make an order.

Source: Fashion United

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When craft gets a new language

The Crafts Council of India’s Sarees and Accessories show was a microcosm of what’s happening in the world of handloom and textile crafts. Here are six artisans/designers who’ve toed the line of tradition while allowing their imagination soar into new design spaces Shilpi, Jaipur  Sanganeri textiles and hand-block prints The beginning: Brij B Udaiwal, 52, is the fifth generation in his family to take up block printing. He assisted his father Madaolal Udaiwal from when he was 12. When he began, the family was involved in creating safas, turbans and pichwais, besides regular block prints. Today:While it devotes time and effort to keep alive his ancestors’ work — mainly on orders from royal families — Shilpi has diversified into wearables and high-fashion, courtesy the younger members of the family. Work has gone into bettering dyeing processes too. The family sources natural indigo from Sawai Madhopur near  anathambore National Park and also works with diverse fabrics such as modal and banana, bamboo and hibiscus fibre, besides cotton, kota and silk. The motifs have seen a sea change too — from bootis featuring soldiers and jaal, they now include geometry and abstracts. M Pandaraiah, Puttapaka/Hyderabad Gadwal and telia rumal saris The beginning: Pandaraiah’s father and grandfather set the stage for him to become the third generation weaver in the family, despite a Master’s in zoology. He’s 54 now, and has been working for three decades. He started at a time when entire families would weave — the husband and wife would sit together in a pit loom and create gorgeous cotton fabric. Nine years ago, he was asked to help revive the telia rumal weave, known for its innate beauty and intricacy, and dating back to the early 19th Century.

Today:

Twelve families work with Pandaraiah in Puttapaka, and one of them, Muthayalu Gajam, won the National Award in 2016 for a telia rumal (in photo) sari in the traditional shades of maroon, black and white. Despite the heavy demand, Pandaraiah has decided to stick to age-old techniques. Three looms out of 15 have been devoted to the telia rumal.

The beginning:

Growing up in a small town in Gujarat meant that Soham Dave was constantly in touch with weavers and their traditions. It shaped the way he viewed fashion, he says, pointing out that traditionally, weaving is a rooted, sustainable process that leaves behind a minimal carbon footprint. An engineer, Dave, went on to study at NIFT, Delhi and later at the Fashion Institute of Technology, New York.

Today:

Dave began his eponymous label in 2011 in New York, soon after graduating there. Both his origins and his multiple exposures are reflected in the clothes he designs. So while there is restraint in the collection (muted colours, minimalist designs and clean, unfussy cuts), Dave uses very traditional textiles and techniques to create it. “I design for the environmentally-conscious global consumer but I don’t compromise on the rooted, sustainability of traditional practices,” he says.

The beginning:

As a child growing up in the sacred city of Benares, Anoop Rai would often sit beside the Ganga ghats painting. “I always wanted to study design or art,” says Rai, who went on to graduate from Benares University and then joined NIFT, Delhi. It was at NIFT that he first encountered the Chanderi weavers of Madhya Pradesh. “I did my graduation project on the Chanderi and Maheswari weavers,” says Rai, who went on to work with an export house and then a design studio, before starting Marm in 2011.

Today: Marm means essence in Sanskrit. And that is what his collection is about — reinterpreting Madhya Pradesh’s Chanderi weave without impacting its essential identity. “I don’t touch the warp, for instance,” he says, pointing out that his design intervention comes in by changing the weft count or replacing the cotton of the weft with linen. He also plays with colour palette and uses a lot of contemporary motifs though he hasn’t yet given up on the regular bootis

and rudraksh prints. “I want to keep the balance between contemporary and traditional,” he says.

MURA Collective, Delhi Shibori: Japanese technique, Indian soul

The beginning:

Kusum G Tiwari and Prabha Gahtori have always loved tie-dye fabrics. “The MURA Collective was started in 1998 as an organisation committed to exploring the use of natural dyes,” says Gahtori. They started with Ikat, before a chance meeting between Kusum and Prof Gulrajani, the then head of the Textile Technology department in IIT Delhi, introduced them to Japan’s shibori technique. Shibori is a form of tie and dye in which the fabric is folded, pleated, tied or stitched in different ways to achieve various designs, she says. Ever since, there has been no looking back.

Today:

Mobilising local women from the village of Neb Sarai, the collective creates shibori that combines traditional techniques with more inventive stitch resist techniques. “The main focus is on exploring complex and artistic visual textures,” she says, adding that shibori motifs combined with the intricate and shaded detailing on the fabric surface are the compelling features of their designs. “We now occupy a very specific niche in the textile world,” she says.

Gamthiwala Textiles, Ahmedabad Ajrakh fabrics

The beginning:

Since 1958, the family has been involved in the art form called ajrakh that has graced innumerable fabrics and turned into wearable art of sorts. Salmanbhai, 35, started working in 2003 with his brothers Zuberbhai and Umarbhai, carrying forward the family tradition.

Today:

The brothers stock ajrakh fabrics in a riot of colours, besides indigo and madder. The design blocks have increased in number too, and runs into nearly 100. What Salmanbhai has done is stick to old designs, but space them out and render some boldly, so that they stand out. But, his vote is to stick to traditional patterns and colour schemes. “There is a permanency about them. They will never go out of fashion.”

Source: The Hindu

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Global Crude oil price of Indian Basket was US$ 54.35 per bbl on 10.04.2017

The international crude oil price of Indian Basket as computed/published today by Petroleum Planning and Analysis Cell (PPAC) under the Ministry of Petroleum and Natural Gas was US$ 54.35 per barrel (bbl) on 10.04.2017. This was higher than the price of US$ 54.19 per bbl on previous publishing day of 07.04.2017. In rupee terms, the price of Indian Basket increased to Rs.3502.64 per bbl on 10.04.2017 as compared to Rs. 3489.51 per bbl on 07.04.2017. Rupee closed weaker at Rs. 64.44 per US$ on 10.04.2017 as compared to Rs. 64.39 per US$ on 07.04.2017. The table below gives details in this regard:

 Particulars     

Unit

Price on April 10, 2017 (Previous trading day i.e. 07.04.2017)                                                                

Pricing Fortnight for 01.04.2017

(March 13, 2017 to March 29, 2017)

Crude Oil (Indian Basket)

($/bbl)

                  54.35             (54.19)       

50.06

(Rs/bbl

                 3502.64        (3489.91)       

3275.43

Exchange Rate

  (Rs/$)

                  64.44              (64.39)

65.43

 

 Source: PIB

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EU textile exports to Russia rise

European Union (EU) exports of textile products to Russia have stabilised, despite a sharp fall between 2014 and 2015, as diplomatic relations between Brussels and Moscow worsened amid financial sanctions imposed on Russian companies and banks over the Ukraine crisis. New figures passed to WTiN by EU statistical agency Eurostat show that EU exports of yarn, fabrics and other textile made-up articles (not including apparel) generated income of €759bn in 2016, up slightly from €758bn in 2015, after falling from €1bn in 2014. Meanwhile, Russian exports of yarn, fabrics and other textile made-up articles (not including apparel) have risen in the past three years – up to €82.8m in 2016, up from €73m in 2015, and €65.1m in 2014. Germany was the most significant importer, buying €18.8m worth of these Russian products in 2016. This rise in trade comes as the EU has – since March 2014 – imposed sanctions on Russian companies and individuals, following Russia’s annexation of the Crimea and support for separatist rebels in eastern Ukraine. It also comes amid threats from the Russian government to ban imports of EU-made clothing and textiles – a policy that it has yet to implement. Looking at national breakdowns of the data, it is clear that some European textile exporting countries have been dealing with poor EU-Russia relations better than others. Key exporter Italy saw its textile sales to Russia rise to €143m in 2016, up from €126m in 2015 (that after a sharp fall from €184m in 2014). German exporters have also witnessed a recovery to €149m in 2016, up from €141m in 2015, following a fall from €201m in 2014. Other major EU textile exporters to Russia have fared less well. Lithuania’s trade with Russia fell from €131m in 2014 to €74m in 2015 and kept falling to €72m in 2016. Receipts generated from Polish textile exports to Russia fell from €93m in 2014, to €75m in 2015 and €73m in 2016. UK exports have maybe performed the worst – down from €49m in 2014, to €25m in 2015 and €15m in 2016. Breaking down EU export data by product line, key sales to Russia (in 2016) included textile yarn €70m; manmade fibre fabrics €90m, albeit down from €165m in 2014; knitted and crocheted fabrics €36m; and floor coverings €63m – also with a big dip, from €90m in 2014. Important exporter Italy has scored key sales in Russia (in 2016) with exports worth €34 million of manmade woven fabrics. Moreover, Italy has demonstrated it is possible to grow sales to Russia quickly, even under the current difficult circumstances: fabrics made from high-tenacity manmade yarn grew from being worth just €329,999 in 2014 to €11m last year (2016). As for Russian exports to the EU (in 2016), textile yarn is also important, generating sales worth €19m. Manmade textile fabrics are another bigger seller – €8m; slivers, rovings, yarn and chopped strands of glass fibres are important niche export products worth €7m in 2016, and glass-fibre woven fabrics – €7m.

Source: Wtin.

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Pakistan: Nightmare of falling exports continues to haunt experts

LAHORE: Exports need special attention that currently account for only 7.4 percent of Pakistan's GDP, exactly the half of Bangladesh's exports that are equivalent to 14.8 percent of its GDP. Pakistan is heading towards an unmanageable situation, as despite its improving GDP growth, its exports are declining creating a big trade deficit that even the remittances have not been able to plug. With a GDP of $271.1 billion (2015 estimates), Pakistan’s exports in 2016 were $20.96 billion. Pakistan’s external debt as on December 2016 was estimated at $604.04 billion. If we compare the performance of the other two large economies of the subcontinent; the Indian GDP has crossed $2.251 trillion and its exports in 2016 were $271.1 in 2016. These exports are equivalent to 12 percent of its GDP. Indian external debt stands at $507 billion that mean its exports are less than two times of its external debt. Bangladesh, with a GDP of $226.8 billion, exports goods worth $33.32 billion, which is 14.8 percent of its GDP. Its external debt is $37.26 billion which is a little over 100 percent of its exports. Experts say that a country is relatively immune from external shocks if its exports are almost equal to its external debt. A country is vulnerable to external shocks if its external debt is over 200 percent of its exports, and it is highly vulnerable to even minor shocks if its external debt is over 300 percent of its exports. Pakistan unfortunately falls in to the last category. Declining exports are a dilemma for the experts, as all the macroeconomic indicators have improved vastly in the last four years. Pakistan is still considered a low cost economy by international standards. However, there are many high and low cost economies around the world that are performing better than Pakistan in the same field that is considered our strength. Take for instance Bangladesh and Vietnam both of which excel in textiles. One may argue that Bangladesh is riding on the GSP Plus status that it has been enjoying in the European Union for the last two decades. But then that status was also accorded to Pakistan two years back. Then Vietnam, with much higher per capita income and much higher wages has surpassed even Bangladesh in textile export performance. We must consider why we lag behind these economies? The answer is simple. We are into very low value-added textiles, where even in clothing we produce low-end products. On the other hand, Bangladesh that started with low-end garments is now producing medium-priced clothing, while Vietnam that started with medium-priced clothing, has graduated towards high-end products. Even clothing accounts for a little less than 40 percent of our textile exports, while the rest are low value-added yarns, fabric, bed sheets, and towels. In the current scenario, it looks difficult to make Pakistan a manufacturing hub. We need change of mindset both at the government and private sector level. During the four years of its rule, the present regime has succeeded in taming inflation, stabilising rupee, and bringing interest rates down to a comfortable level. It has improved infrastructure. Telecommunication has connected almost the entire country with the outside world. This government has failed to live up to its promises to the exporters on refunds and rebates. It remained concentrated on the five major exporting sectors, while neglecting sectors that hold promise for the future. It has lost creditability by backing off from the various actions it promised to the investors. Exporting industries need energy and power that has been largely provided by the state. The energy and power costs higher than regional economies, which is a big disadvantage for our low value-added industries. Absence of industrial clusters and common facility centres has also effectively barred the small and medium investors from entering the export arena. Economy stands no chance of sustained revival without vibrant SMEs.

Source: The News International

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Hard Brexit to have significant implications for Pakistan's exports

KARACHI: The British prime minister invoked Article 50 on March 29, 2017 and formally started a two-year Brexit process. Although the United Kingdom has two years to negotiate a deal with the European Union (EU), the outcome of trade negotiations between the UK and the EU can have implications for exports of Pakistan. EU countries are members of a single market which means goods, capital, labour and services can move freely from one member to another. The scope of post-Brexit arrangements will involve either extreme ‘hard’ measures such as complete withdrawal from the EU or soft measures which retain certain aspects of the existing customs union. Post-Brexit relations discussed. If hard measures are adopted, the UK will undertake independent trade agreements with EU member countries as well as with non-member countries. Regardless of the measures, it is crucial to determine the pattern of imports into the UK from Pakistan as it was the third largest export destination for Pakistan in 2016.

Trade pattern

The UK has strong colonial linkages with Pakistan and it played an important role in the award of GSP Plus status to Pakistan by the EU in 2014. Five out of top 10 export destinations for Pakistani products in 2016 were EU member countries. In the year, Pakistan’s exports totalled $21.7 billion, of which $1.59 billion –7.3% – came from the UK. In comparison, Pakistan exported more than $1.2 billion worth of goods to Germany and $800 million was earned from Spain. With more than 20% of total exports from Pakistan to the EU destined for the UK, a harder Brexit process that involves renegotiation of trade agreements will have significant consequences for Pakistani exporters. On the other hand, the UK made imports of $636 billion from all of its trading partners. Therefore, even if the UK government does offer concessions to all developing economies, similar to the GSP and GSP Plus status offered by the EU, the onus of ensuring that incentives lead to expansion in the trading relationship between Pakistan and the UK will primarily rest on Pakistani policymakers. Total exports from Pakistan between 2015 and 2016 fell by 4.3% while exports to the UK declined by 2%. Imports from Pakistan into the UK are heavily concentrated in textile products, which contribute 82% of total imports. Vegetable products account for 4% and leather products account for 3%. On the other hand, textile products constitute 5%, vegetable products constitute 2.6% and leather products constitute 0.6% of total imports into the UK from all its trading partners. Nine out of the top 10 products imported into the UK from Pakistan, which account for more than 50% of all imports into the UK from Pakistan, were made-up textile articles. The UK also imported more than $27 million worth of husked rice, which constituted approximately 82% of all cereals imported into the UK from Pakistan.  As with total exports from Pakistan, the exports to the UK are heavily concentrated in a few selected products. On the other hand, more than 94% of total imports into the UK from Pakistan in 2016 were industrial goods. Even though Pakistan typically exports low value-added products, a significant proportion of imports into the UK from Pakistan is likely to involve value addition in Pakistan. The UK and the EU are a major market for the value-added consumer goods exported from Pakistan. A restructuring of trade between Pakistan and the UK can have an adverse impact on value-added exports, particularly in the textile industry.  Pakistan welcomes Britain’s desire to join CPEC Other larger EU member countries such as Germany, France and Spain also import a similar range of products from Pakistan. Therefore, exporter networks are likely to exist between Pakistan and the EU member countries that rely on symmetrical market access offered by various EU members. With the most important export destination of Pakistan opting to leave the EU, it is imperative that Pakistani policymakers seek trade policies that alleviate any negative impact, particularly if hard measures are to be adopted by the UK.

Source: The Express Tribune

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High energy costs affecting Indonesian nylon yarn sector

High energy cost is one of the main factors affecting the Indonesian nylon yarn industry, besides a low demand compared to polyester, according to Michael Sung, general manager, Ever Shine Tex, an Indonesia-based textiles company. Sung told Fibre2Fashion, "Gas prices in Indonesia are close to $9/MMBTU which is almost double than that of Singapore, the nearest neighboring country. Electricity in Indonesia is still very unstable as the total supply still falls below the actual demand that the country needs. Unfortunately, due to certain environmental requirements that prohibit factories in investing in coal power plants near residential areas, we have to use gas engines to supply the energy to our mills." Nylon is still considered as a niche synthetic product in the domestic market. "Indonesian customers are price sensitive and prefer polyester over nylon," he added. The company operates the yarn division through its subsidiary PT Prima Rajuli Sukses, which manufactures nylon filament yarns, textured yarns, including air textured yarns and draw textured yarns, twisted yarns, micron filament yarns, and high-stretch yarns. PT Prima Rajuli Sukses mostly supplies to Southeast Asia, the Middle-East, Europe and South America. (HO)

Source: Fibre2Fashion

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Mali registers 18 percent cotton output hike in 2016/17 season

Cotton production in Mali jumped 18 percent in the 2016/2017 season to 647,212 tonnes, the country's highest yield in more than a decade, an official at the Malian Company for the Development of Textiles(CMDT) said on Monday. Output this season was boosted by increased prices and fertiliser subsidies fixed in 2015, and the CMDT expects next season's production to rise to 725,000 tonnes. "The season is now over. All of the factories have stopped since April 4 after a record production," Moussa Yattara, a technical advisor at the CMDT, told Reuters. "It has been an exceptional campaign by all measures." Next season's target will be achieved by planting more land, renewing subsidies and continuing a two-year-old programme that provides tractors at reduced prices, the agriculture ministry said in a statement last month. Mali isWest Africa's biggest cotton producer and its season runs from April to March in two phases, production between May/June and September/October, with commercialisation from October/November to end-March. (Reporting By Tiemoko Diallo; Writing by Aaron Ross, editing by Pritha Sarkar)

Source: The Times of India

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Three foreign brands eye Turkish apparel market

Three well-known international apparel brands, namely Uniqlo, New Yorker and Selfridges, were on the lookout for an opportunity to enter the Turkish market, confirmed Tarkan Ander of JLL Turkey, a commercial property and investment management firm. Ander said that the prominent fashion brands were looking at possible locations in Turkey at the moment. Turkey, with its growth rate, young population and increasing per capita income, has come under constant focus of foreign brands, over the last decade. Ander, a board member of JLL Turkey, said the New Yorker department store chain, one of Europe's most widespread apparel brands, Selfridges and Japan's Uniqlo were all eyeing the Turkish market. Noting that there were only a handful fashion brands which are yet to enter Turkey, Ander said, the talks with the three brands, were ongoing. They have been observing the Turkish market for the past two years and waiting for the right time and location. Ander said that they were aiming to finalize deals with at least two of these brands to open stores before the end of the year. Ander said that while European brands want to enter Turkey, they also want to see Turkish brands in their native markets. He said there were demands for Turkish goods in European shopping malls despite the political difficulties. Market interest was mostly driven by the rapid mobility, diversity and price policy of Turkish brands like LC Waikiki, Koton, Defacto and Mavi. Meanwhile, Ece Turkey's general manager, Nuri Şapkacı, said Turkish brands were in high demand in European shopping malls. "We receive orders from Germany and Poland, in particular. We know about competition, production and design. It is normal to receive demands," said Mavi CEO Cüneyt Yavuz. Galeries Lafayette to open two more stores in Istanbul Galeries Lafayette, a luxury department store in France, which will open a store at Emaar's Anatolian project, is looking at possible locations to open two more stores on the European side of Istanbul. Noting that they were in talks with company officials, JLL Turkey's Ander said, "We're in talks with Galeries Lafayette to open a third store. We are trying to find a proper location at the moment."

Source:  Daily Sabah

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Recycled plastic turns romantic fashion in H&M's latest eco collection

Swedish fashion giant H&M will unleash its 2017 'Conscious Exclusive' designs globally on April 20, following the collection's first global preview during Amazon's India Fashion Week. The premium collection, which is made entirely from sustainable materials - including BIONIC - a polyester made of plastics recycled from shoreline waste - will be launched later this month in approximately 160 stores worldwide. In addition to accessories made from recycled waste and a variety of women's garments - including an ethereal statement evening dress of flowing pleats, made from the BIONIC fabric and sported by Natalia Vodianova in the campaign - this year, 2017 H&M 'Conscious Exclusive' collection will also include men's pieces, and for the first time, a selection of styles for kids. Conscious Exclusive is a key part of H&M's move towards a more sustainable future, with 26% of H&M's entire offering now made from sustainable materials. The goal each year is to increase the share, with the company aiming to have 100% of its cotton sustainably sourced by 2020. This dress from the 2017 H&M 'Conscious Exclusive' collection is made from organic silk. Image: H&M An outfit from the 2017 H&M 'Conscious Exclusive' collection; the top is made from tencel and the skirt from recycled polyester. Image: H&M

Source: Times LIVE

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China : Visitor numbers up 10% at Yarn Expo in Shanghai

Visitor numbers at the recently concluded Yarn Expo trade show in Shanghai rose 10 per cent to 22,579 and they came from 94 countries and regions, as against 20,527 from 77 countries and regions in 2016. The top 10 overseas visitor countries and regions were Australia, Hong Kong, India, Indonesia, Japan, Korea, Russia, Taiwan, UK and the US. Exhibitor numbers at the March 2017 edition too increased 27 per cent to 393 from 12 countries and regions compared to 309 from 11 countries and regions in the previous year. "At this edition, we saw a noticeable increase in the optimism of our exhibitors about the market situation in the coming year, so we are excited about what the year holds for the industry," Wendy Wen, senior general manager at Messe Frankfurt (HK) said.

Source: Fibre2Fashion

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Techtextil to present high-tech textiles for medical applications

Ever since the invention of sticking plaster, plaster casts and operating-theatre apparel, the textile industry has made an important contribution to the healthcare business. From the dialogue that has gone on between the two sectors, we can, in future, expect high-tech “replacement parts”, rehabilitation technology, and functional textiles with built-in, self-activating emergency alarms for the elderly. The increased interconnection between these fields will be demonstrated at Techtextil, the leading international trade fair for technical textiles and nonwovens, which will be held from 9-12 May in Frankfurt. Expectations are high for new fibre-based products that can be used in medical treatments and therapeutic care, on the one hand, and for revenue potential, on the other, organisers report. Trade and professional visitors involved in the medical and health-care business can look forward to a range of new fibre-based research findings, together with the solutions that derive from them, in the Medtech section at Techtextil. Areas of application include hospitals, rehabilitation and care institutions and / or the care of the elderly in their homes.

Potential for high-tech fibres in 2020

In terms of the medical and healthcare business, fibres are becoming an increasingly important focus for German textile research. Current development projects are showing that models to be found in the world of plants and animals are not only being replicated in the laboratory, but, in joint work with other research disciplines, clinics and industry, they are laying the groundwork for new operative possibilities. “First and foremost, the human body will tolerate fibres and they will have adaptable properties in terms of rigidity and resorbability. Some of them will be new types of product, covering implants and therapeutic aids that can be individually adjusted to suit the individual patient,” said Dr Klaus Jansen from ‘Forschungskuratorium Textil’, the umbrella brand for German textile research.

Medical textiles

Things that have, for the most part, not yet progressed beyond the laboratory stage at textile research establishments in Dresden, Aachen and around Stuttgart, will, in just a few years, undoubtedly find their way into clinical practice, organisers report. Examples here might be textile dressings with built-in sensors, new kinds of bronchial stent and portable artificial lungs with core elements made from textiles. Fibre-based innovations are of huge importance for an ageing generation – above all, in situations where clothing with smart-textile components can measure vital parameters and environmental influences and channel the data in the right direction.

Permanent healing signals from the wound

Three research institutes – the Institute of Textile Machinery and High-Performance Materials Technology (ITM) and the Institute of Solid State Electronics (IFE) at the Technical University of Dresden, as well as the Textile Research Institute for Thuringia-Vogtland (TITV) in Greiz – have developed miniaturised, textile-based sensors for the continuous monitoring of chronic wounds and demonstrated their efficacy. It is hoped that they will make it possible to record complex physiologically and chemically relevant factors. As part of an initial research project, embroidery techniques were used to create modular networks of sensors applied to textile and non-textile substrates. The modular networks were then connected to create functional monitoring systems. Textile-based sensoric networks like this can be incorporated in dressings around wounds, so as to record real-time physiological parameters, providing objective data that might indicate any disruption to the healing process. Such continuous monitoring, say the researchers, also makes it possible to gain a better understanding of the relationship between the relevant parameters surrounding the wound.

Source: Innovation in Textiles.

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