What will be the future of Indian textile industry after the roll-out of Goods and Services Tax (GST)? This question is on top of the mind of every textile and clothing entrepreneur. And the answer to this question will be revealed to one and all by Finance Ministry on 3rd June 2017 Meanwhile, the industry is anxious as well as excited to know the (GST) rate on the textiles and clothing sector. The industry is hopeful that the government will announce one rate of GST across the textiles value chain. This wish of the industry, if implemented, proactive and heeds to the industry’s demand of the One GST Rate. If the industry demand is met and level playing field is provided,particularly to the man-made fibre industry, it will lead to higher domestic consumption and also exports. It may be noted here that the global pattern of consumption is 70:30 in favour of synthetics while within India it is reverse. In the West, particularly EU and US, the man-made fibre product are preferred which is amply clear from the fact there has been a continuous decline in cotton textile imports vis-à-vis manmade fibre products over the past five years. If India has to further penetrate into the EU and US, it cannot be with cotton. It is only possible with man-made fibre products. Similarly, within the country there is need to promote man-made fibre products as cotton has become a rich man’s cloth. The sources informed that global production of cotton is constrained in the range of 23-26 million tonnes annum for the last many years of which India has a share of 5-6 million tonnes. The cotton production is not expected to increase by leaps and bounds in the future due to limited availability for land. Food security has become one of the important issue for global economy, hence cultivated area for cotton is reducing. A similar situation is in offing in India. Meanwhile, to reach textile production of US $ 350 billion, India would need 20 million ton of fibres per annum as against the present consumption of all fibres in India which is the range of 10-12 tonnes every year to produce US $ 120 billion of all textiles. Will give a fillip to the textile and clothing business in India. And if the government announces multiple rate of GST for the textile value chain, it will certainly spell trouble, according to industry experts. If multiple GST rates come into force it will severely hit the textile industry. The buzz in the corridors of the industry leaders is that Cotton yarn and fabrics will be under 5% GST rate, Fabrics made of manmade fibres shall be under 12% and manmade fibres under 18%. Branded textiles will also be under the 18% slab. If the above rates are implemented, it will lead to misdeclaration and tax evasion and the purpose of GST will get lost. Therefore, it is imperative to have one single rate for the entire value chain, sources pointed out. The ball is in the governments’ court. It is now the call of the government. Does it want the Indian textile industry, which is one of the largest and highest employment generating industry, to thrive and prosper or leave it in the lurch? The Indian textile industry is presently pegged at US $ 120 billion. And the governments’ target is to make it reach above US $ 350 billion in next five years. The above target is possible provided the government is Presuming that the cotton production remains where it is today, India would need incremental man-made Fibre production of 15 million tonnes to meet the requirement of textile industry. Considering the above facts and figures, it would be prudent for the government to have One GST Rate for the entire value chain. One hopes that better sense prevails to empower the industry to scale new heights lead by man-made fibre industry in the GST Regime.
Source : Economic Times
NEW DELHI: Readymade garments, gems and jewellery, and agricultural products, which have traditionally represented India’s exporting prowess, all lost market share in the past five years. Cars, diamonds, maize, trousers, make-up and skincare items, handbag and cotton sweaters figure in the list of 61 products where India lost market share between 2011 and 2016. Although India failed to cater to increasing demand for high-end cars and handbags, it lost market share in gold and silver jewellery due to the rise of competitors such as China, and Cambodia and Bangladesh in readymade garments. India’s market share in the medium-end car segment fell from 8.84% in 2011 to 5.77% in 2016 and for high-end cars, it fell from 1.77% to 1.57%. This considerable loss in share is attributed to South Korea and Japan, the leaders in manufacturing passenger vehicles. Lack of skilling of artisans in the gems and jewellery sector has cost India heavily, especially in diamonds, in which the country’s share declined from 31.36% in 2011 to 30.79% in 2016. India ceded much of the market to China and Vietnam, which emerged as the key competitors. Exporters have raised the red flag on 61 such products and asked the commerce ministry to revisit its strategy to promote their exports. "We have asked export promotion councils and the department of commerce to revisit the strategy for export of these items," said Ajay Sahai, director general of the Federation of Indian Export Organisations. In case of agricultural items such as maize and oil cakes, currency fluctuations played a big role in India losing market share. As the Brazilian real weakened, India lost its competitiveness in oilcakes to the South American country. "We need to build domestic capability or give them a greater impetus to increase their share," Sahai said. The government, on its part, could give higher support to these products in the Merchandise Exports from India Scheme (MEIS). The MEIS was introduced in the Foreign Trade Policy 2015-20 with product and market focused incentives, under which rewards are payable by way of the MEIS duty credit scrip, which can be transferred or used for payment of a number of duties including the basic customs duty. The government later announced higher support to several products such as industrial machinery, machine tools, bicycle parts and hand tools used in agriculture that are manufactured by small and medium enterprises.
Source: Economic Times
The rupee breached a key resistance level of 66 in early March and extended its upmove until late April. However, it encountered a significant resistance at around 64 in late April, recording a peak of 63.93 on April 26. After a corrective decline, the rupee again tested the key resistance level of 64 in mid-May and fell sharply. But a key support at 65 arrested the rupee’s decline; a 50-day moving average at these levels provided further support. After taking support at this base level, the contract is heading northwards. On Monday, the rupee marginally declined to close at 64.49 levels. Since early March, the rupee has been on a sideways consolidation phase in the range between 64 and 65.
Dollar index
Following a sharp fall in the second week of May, the dollar index found support at 96.7 last week and is in a corrective up move. During this fall, the index breached its 200-day moving average as well as a key support at 98.7. The ongoing up move lacks strength. The index currently trades at 97.3. It faces a key resistance ahead in the zone between 97.5 and 98. Strong rally beyond this hurdle could test next resistance at 98.7 levels. Resistances beyond the level are placed at 99.4 and 100. If the dollar index breaches the immediate support level of 96.7, it can decline to 96. Such a fall will reinforce the intermediate-term downtrend that has been in place since encountering a key resistance at 103.5 in early January. The next key support for the index below 96 is pegged at 95.
Rupee outlook
The recent recovery in the rupee from the key support level of 65 is once again strengthening it and increases the possibility of testing the upper boundary of the sideways consolidation phase at 64 in the near term. Breach of the immediate resistance level of 64.3 can push the currency higher to 64 in the coming weeks.
Stronger uptrend
An emphatic break beyond 64 can strengthen the uptrend and take the rupee higher to 63.73 initially and then to 63.46 in the short to medium term. Inability to surpass 64 could keep the currency in the sideways band between 64 and 65 for a while. On the other hand, the rupee has immediate support at 64.72. A slump below the level can drag it down to 64.95 and 65 in the near term. A strong plunge below 65 can pull the currency down to 65.4 and then to 65.8 in the short term.
Source: Business Line
To make the government websites more user-friendly and make it easier for visitors to understand government programmes and updates, a new site (microsite) was launched on Monday — ‘threeyears.mygov.in’ — in which an animated character called ‘Prerna’ would take the user through each section. The Ministry for Electronics and Information Technology (MeitY) said various weblinks or websites of the government departments will also be linked to this portal, which will be available in 12 regional languages such as Bodo, Dogri, KashmiriDev, Kinkani, Maithili, Nepali, Santhali and Sindhi. The websites linked to the portal include agricoop.in, data.gov.in, ecourts.gov.in, farmer.gov.in, passportindia.gov.in, uidai.gov.in among others. “This microsite is a one-stop platform serving as a repository of information pertaining to the initiatives and achievements of the last three years,” Ravi Shankar Prasad, Minister for Electronics & Information Technology and Law & Justice, said. 11 narratives The information is categorised in 11 narratives such as ‘Decisive and Bold Government’, ‘Government Empowering Gaav and Garib’, ‘Honest and Incorruptible Government’, ‘A Government That Cares’, ‘Government for the people, of the people, by the people’, ‘Brand India on the rise’, and ‘Harnessing Yuva Shakti for a New India’. Under each narrative, a user will find different sub-themes that will lead to interactive videos and infographics through Prerna. For instance, the ‘Voice of India’ section curates stories of beneficiaries of different schemes of the government through testimonial videos. A quiz on governance, similar to last year, is available under ‘Quiz Whiz’. The ‘Modi Festival’ section will keep the user updated with the events across the country by the Ministry of Information & Broadcasting to disseminate the government’s achievements. ‘Media Zone’ Similarly, the ‘Media Zone’ would provide infographics, flyers and other downloadable materials that can be downloaded and read. With simple activities such as sharing media and referring BHIM App to more extensive tasks such as Swachh Bharat, blogging and designing; citizens can earn points at every step for the next 55 days. The ‘Championship’ will last until the third Anniversary of My Gov on July 26. The top scorers will be featured in the leader board and will get an opportunity to be a part of many exciting events of My Gov, Prasad added.
Source: Business Line
“There is no room for revising Goods and Services Tax (GST) rates fixed on various goods and services,” said Vanaja Sarna, Chairperson, Central Board of Excise and Customs (CBEC). “The GST Council is meeting on June 3 to fix rates for goods which have been left out. “Revision of rates may come up, but chances of that happening are remote,” she told reporters on the sidelines of National Academy of Customs, Indirect Taxes and Narcotics (NACIN) facility inauguration. Acknowledging that CBEC is getting representations, Sarna said, “We have got and keep getting numerous representations from industries and businesses. The Governing Council will take the final decision when it meets on June 3.” She further said, “At this stage, it will be very difficult to say if the Council will actually reopen any of the rates because of the time factor involved in bringing out the GST. “One must remember, if you open up any of these, then there will be no stop to revisionary demands.” Sarna said even though an anti-profiteering agency has not been set up to curb industry taking undue advantage to create arbitrage before the rollout of GST on July 1, the government will have the rights to question arbitrary hikes in prices. “The anti-profiteering agency is yet to be set up, but we will have all the rights to question the industry against hiking prices arbitrarily,” she said. Earlier in the day, Finance Minister Arun Jaitley, speaking after inaugurating National Academy of Customs, Indirect Taxes and Narcotics (NACIN) facility, said “GST regime will make India more tax-complaint society.” Training academies like NACIN are crucial for a tax-complaint society as it forges a proper co-ordination between taxation authorities (Centre and state governments) and the tax payer. The amalgamation of various indirect taxes is itself a monumental taxation change, which requires officials to upgrade their skills and knowledge, Jaitley said. New complex NACIN, Bengaluru, established in 2002 for training officers of the Customs, Central Excise and Service Tax posted in Karnataka and Kerala, has moved into the new complex constructed at a cost of ₹49 crore. The training facility is expected to train the officers of Central Board of Excise and Customs and officers of the VAT Department in the new GST regime. According to DP Nagendra Kumar, Principal Additional Director-General of Central Excise, the new complex, built as per the GRIHA norms and is a grade-IV green building, has six lecture halls to accommodate 250 people, a residential hostel block consisting of over 100 rooms, two computer labs, electronic library.” He further said the building is equipped with solar power generation of 160 kw, biodegradable waste management system.
Source: Business Line
Crisil SME Tracker: GST bodes short-term pain but long-term gain for MSMEs CRISIL SME Tracker: GST to make MSMEs in small cities more competitive CRISIL SME Tracker: There is more to creditworthiness than size of an MSE CRISIL SME TRACKER: Housing gets a policy push, but challenges remain Birla Sun Life Short Term Fund: A long track record of strong performance. Implementation of the Goods and Services Tax (GST), scheduled to take effect on July 1, 2017, is expected to pose challenges for micro, small and medium enterprises (MSMEs) in the short term. In the long run however, it will help them compete better. As things stand, though there is clarity on tax rates for most goods and services, the regime could take a couple of quarters to stabilise. Indeed, a sample survey of rated MSMEs by CRISIL reveals that at least a quarter of them are yet to register for the Goods and Service Tax Identification Number (GSTIN), a pre-requisite. Pendency of adherence is particularly high among enterprises in rural and semi-urban areas, where awareness on GST is low. What’s more, the change of tax regime could impact the profitability of MSMEs in the short run, primarily for two reasons. First, the uncertainty induced in the supply chain due to the transition will impact revenue. In the melee, there could be a slowdown in production by MSMEs till things stabilise. Second, MSMEs will have to bear the burden of non-compliance of GST by their unorganised-segment suppliers — in other words, they might need to bear the input credit cost. Further, there could also be a situation where some of the inventory is sold at a lower cost before the GST roll-out, to avoid the stock getting stuck in the change-over process, further denting profitability. In the long run, CRISIL believes a simplified tax structure and a unified market will improve operational efficiencies, especially of MSMEs with a wider reach. CRISIL’s interactions with its MSME clients revealed optimism about increased opportunities for inter-state businesses, lower raw material and transportation costs, and reduction in tax avoidance by their competitors, helping them compete better.
Source: Business Standard
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$ 50.63* per barrel (bbl) on 29.05.2017. In rupee terms, the price of Indian Basket decreased to Rs. 3268.80 per bbl on 29.05.2017 as compared to Rs. 3270.72 per bbl on 26.05.2017. Rupee closed stronger at Rs. 64.56 per US$ on 29.05.2017 as compared to Rs. 64.59 per US$ on 26.05.2017. The table below gives details in this regard:
|
Particulars |
Unit |
Price on May 29, 2017 Previous trading day i.e. 26.05.2017) |
Pricing Fortnight for 16.05.2017 (April 27, 2017 to May 11, 2017) |
|
Crude Oil (Indian Basket) |
($/bbl) |
50.63* |
49.22 |
|
(Rs/bbl) |
3268.80 (3270.72) |
3162.88 |
|
|
Exchange Rate |
(Rs/$) |
64.56 (64.59) |
64.26 |
*Due to holiday in UK on 29.5.2017, the quotes for Brent are not available. Since Brent prices are not available, the price of Indian basket Crude oil cannot be derived, Hence Indian Basket Prices of 26.5.2017 has been considered.
Source : PIB
Hyderabad: Giving huge business opportunity to the powerloom weavers in Sircilla town of Rajanna district in Telangana, the state government has asked them to produce Rs 200 crore worth Bathukamma sarees. The sarees will be distributed by the State government to women below the poverty line during the Bathukamma festival. Earlier, the powerloom weavers of this textile town were in the news for high suicide rates due to unemployment. The government had also given orders for school uniforms under the Rajiv Vidya Mission as well as bedsheets and blankets for hospitals to them. According to a media report, Handlooms Development Commissioner Shailaja Ramayyar met with the members of the Mutually Aided Co-operative Societies (MACS), owners of small-scale powerloom industries and other officials last weeky to inform them about the government’s decision to place the order for one crore Bathukamma sarees. Collector D Krishna Bhaskar and others were also present. The one crore Bathukamma sarees would be produced on 20,000 powerlooms including MACS, small scale industries and Textile park. She directed the MACSs, SSI and individual powerloom weavers owning looms and the Textile park to produce the sarees within three months and supply them
Source: Knn
The cotton output is estimated at 340.50 lakh bales for 2016-17 crop year, same as March, an industry association said in its April projection. Cotton production stood at 337.75 lakh bales last year, Cotton Association Of India (CAI) said in a release here. One bale is of 170 kg. The projected balance sheet drawn by the CAI estimated total cotton supply for the season at 410.50 lakh bales, while the domestic consumption is estimated at 300 lakh bales, which will leave an available surplus of 110.50 lakh bales. The arrival of cotton during April is estimated at 30.75 lakh bales compared to 22.25 lakh bales arrived during the same month last year, CAI said. The total arrival this season up to April are estimated at 306.25 lakh bales, which is around 90 per cent of the total estimated crop, it added.
Source: Hindu Business Line
Apparel Training and Design Centre (ATDC) India’s Largest Quality Vocational Training Provider for the Apparel sector, met with senior government officials in Gujarat to expand its footprint by opening a new centre and also setting up a Regional Training Hub at Ahmedabad/Gandhinagar with a specific end goal to fulfill the steadily expanding requirement of skilled youth in the rapidly developing textile related sectors. Sri.HKLMagu Vice Chairman AEPC and Dr. Darlie Koshy, DG and CEO, ATDC met with Chief Secretary, Dr. J.N. Singh alongwith Senior government officials. Dr. Darlie Koshy – DG and CEO, ATDC said, “Gujarat is one of the fastest developing Textile Apparel Manufacturing clusters. ATDC has state -of -art infrastructure offering shop floor, supervisory and managerial skills to make industry- ready workforce. This will enable us to make new Skill Development forays in the State of Gujarat as we propose to set up a “Regional Training Hub in Ahmedabad / Gandhinagar, with additional training centres in the State”. ATDC plans to set up“India International Skill Centre”, with NSDC, additional ATDC-SMART centres in Major Textile-Apparel Clusters in Gujarat State and Apparel Design Centre (as Fashion and Crafts Design and Innovation Cells) with focus on “Innovative Designs” for Apparel Industry to create new brands and global fashions for youth. There are also plans to commence B. Voc. courses in Gujarat. Headquartered in Gurugram, ATDC under the aegis of AEPC has emerged as India’s Largest Vocational Training Network for the Apparel Sector whose presence currently spans 200 ATDCs including 65 ATDC Vocational Institutes and over 135 ATDC-SMART Centres and Skill Camps present in major Apparel clusters spread across 23 states & 85 cities Pan India.
Source: The Hans India
The world is about to be inundated with cotton as farmers take advantage of high prices to produce more and China floods the market with excess supply from its strategic inventory. Global output will climb 6.9 per cent in the season that starts Aug. 1, helping push stockpiles outside of China to a record, the US Department of Agriculture estimates. American farmers, the biggest exporters, are forecast to have their biggest harvest in a decade, and crop increases are expected in Australia and top grower India. Growers planted more acres after cotton futures jumped 12 per cent last year, when most other crops were mired in slumps. At the same, there are no signs that China’s sales of its state inventories are slowing down. The ample supply outlook means prices are now heading for the biggest monthly loss since August. Hedge funds are backpedaling on bets on a rally, lowering their wagers for the second time in three weeks. “The supply side should remain ample, and if we see production ramp up, cotton will see further losses,” said Lara Magnusen, a La Jolla, California-based portfolio manager for Altegris Advisors LLC, which oversees $2.43 billion. On the demand side, a recent downgrade to China’s debt has raised concern that global demand “won’t be enough” to absorb additional production. Net-Wagers Money managers lowered their cotton net-long position, or the difference between bets on a price increase and wagers on a decline, by 8.7 per cent to 95,904 futures and options contracts in the week ended May 23, according to US Commodity Futures Trading Commission data released three days later. That’s the lowest in a month. Cotton futures dropped 7.7 per cent in May, settling Friday at 72.79 cents a pound on ICE Futures US in New York. Prices are headed for the first monthly loss since December. While the USDA projects that the market will post a third straight, albeit smaller, deficit in the 2017-2018 season, researcher Cotlook Ltd. is forecasting a surplus. The Birkenhead, England-based company estimates production will top demand by 44,000 metric tons. Favorable weather has aided US spring seeding, especially in Texas, the top grower. Through May 21, American farmers had sown 52 per cent of intended plantings, up from 45 per cent a year earlier. India, Australia Output is also looking favorable in India, the biggest global producer. In Australia and Brazil, increased mechanization is aiding production and allowing farmers to compete with the US on quality. China continues to unload inventories to supply the domestic market, dimming the demand outlook in the No. 1 consumer. At an auction on Friday, the nation sold 13,700 tons out of 29,500 tons offered, according to the website of state-owned China National Cotton Information Center. “People used to say that because so much of the world inventory was within China, that it was bullish, because it was never going to come out,” said Gillian Rutherford, who helps oversee about $12 billion as a commodities portfolio manager for Pacific Investment Management Co. in Newport Beach, California. “Now, we are in the reverse situation.” Still, farmers will have to “navigate the summer” growing season in the US, and adverse weather can throw off production estimates, Rutherford said. Some cotton fields in the US Southeast, including Georgia and Florida, are stressed from lack of rain and will turn dry again in the next two weeks, said Drew Lerner, president of World Weather Inc. In India’s northern growing region, where planting is underway, plants are benefiting from adequate moisture and crop prospects are “very good,’’ whereas China’s non-irrigated crops in northern areas are stressed from dryness and high temperatures, he said. China can also still surprise the market if it decides to increase its import quotas for mills in need of higher-grade cotton after “good demand” seen during the auctions recently, Jon Devine, chief economist for Cary, North Carolina-based researcher Cotton Inc., said in an interview at Bloomberg headquarters in New York. The majority of the company’s clients include cotton growers and textile importers.
Source: Economic Times
Hyderabad: A silent revolution is on in the business of textiles. Fabrics are coming into the market with novel properties that were totally unexpected a few years ago. While some may have anti-bacterial properties, others may give the wearer protection from harmful ultraviolet rays or for that matter be self-cleaning. The list is rapidly expanding. The International Advanced Research Center for Powder Metallurgy and New Materials (ARCI) in Hyderabad is at the forefront of research in this area. It has developed and commercialised nanomaterials that endow fabrics with special properties. Two of its most popular innovations are nano-silver suspension and nano-titanium dioxide material. The nano-silver suspension, called N9, is being widely used by the textile industry to produce antibacterial fabrics for hospitals, innerwear, sportswear, socks, baby care products and other such use. The nano-titanium dioxide material — also called nano-titania — has high photocatalytic activity and is used to impart self-cleaning property to the textile and to make them ultraviolet proof. The technology of two nanomaterials has been transferred to Bangalore-based Resil Chemicals for commercialisation. The company has launched garments treated with the nano-silver suspension under the brand name “N9 Pure Silver” and those treated with nano-titania material under the tag names of “Sun Wash” and “Wearable Sun Screen”. Several leading denim brands including Splash, Flying Machine and Colour Plus have adapted this technology. ARCI has also undertaken a major task to improve the efficiency and performance of Lithium Ion Battery (LIB) technology for electric vehicles. It is trying to figure out whether it can use its experience and expertise in the areas of nano-material and carbon coating on electrode to achieve this. In addition, it is engaged in looking at the possibility of developing a new range of batteries that performed better than Lithium Ion for electrical vehicles. “We should look for alternate cheaper battery materials. We have all the fabrication technology. We can perhaps make them better. I see a great challenge and requirement to make cost effective batteries,” ARCI Director Dr G.Padmanabham said in an interview. As a major research centre in the field of material sciences, ARCI specialises in areas such as solar and automotive energy materials, engineering coatings, ceramic processing, fuel cell technology, and laser processing of materials. The Institute, among other things, works on a very important and interesting topic: welding. “Yes, welding may sound too low end for an institution like us to work on but it is really not so’’, chuckles Dr Padmanabham. He explains, “One can and must look at welding from a broader sense. It has taken a larger meaning in recent years with the development of various new materials such as ceramics, polymers, and composites. It is true that traditionally welding meant just joining of metal pieces. No more.’’. Even with regard to traditional welding, he says, much remains to be understood and there is a need to have deeper knowledge. “High-tech products have no doubt been making their way into the society and the economy. But, traditional ones cannot be wished away. For instance, we cannot do away with trucks and tractors for moving goods and for farming.” Explaining further, he said, “Let us start from the basic, with the rods or sheets that come out of steel plants. They undergo some processing or other, such as casting, rolling or forging and due to that they acquire certain strengths and microstructure characteristics. When we weld two metal pieces, we actually melt the edges and allow them to solidify again. This may result in some in homogeneity at the junctions where the welding has taken place. Also, in the process of fusing and solidifying, atmospheric gases can get inside the welding site. On cooling, the gases can exert pressure leading to cracks. All these can have a significant effect on the overall performance of the welded materials. The problem can be different for different material. For instance, while stainless steel may lose corrosive resistance, structural steel may develop clod cracking at the location of the welding. Scientists have developed a lot of understanding on the issue. However, more studies can be done”. Dr Padmanabham is a renowned material engineer. He obtained his Bachelor’s degree in mechanical engineering from Andhra University and Master’s degree in metallurgy from NIT Warangal. After that, he did his PhD in welding technology from IIT Delhi. His professional career started in 1987 as a design and development engineer at Bharat Dynamics Limited in Hyderabad where he was involved in indigenisation of a strategic product. He joined ARCI, Hyderabad in 2005 and made outstanding research contributions in the fields of Materials joining and Laser Processing of Materials. He was also involved extensively in promoting technology transfer and commercialization. Under his leadership, the Centre for Laser Processing of Materials not only developed as a nationally unique facility but also provided expert help to several other organisations in setting up laser processing facilities. He also provided overall leadership to ceramics processing, sol-gel nanocomposite coatings. Dr Padmanabham has more than 80 research publications, and 8 patents to his credit. Apart from this he is a recipient of Materials Research Society of India Medal and German Academic Exchange (DAAD) Fellowship.
Source: Firstpost
Textile and apparel major Raymond will invest Rs 350 crore in capacity and retail expansion this year, the company said today. This will help ramp up its apparel sale and grow the fabric business over the next few years, a senior company executive said. "Of the Rs 350 crore, Rs 200 crore will be allocated to manufacturing expansion, both in India and offshore, while Rs 150 crore will go towards retail expansion," Sanjay Behl, CEO, Raymond, told PTI. The company is setting up a large suiting manufacturing plant in Ethiopia in Africa that will be operational this year and has also undertaken a significant expansion in Amravati in Maharashtra for cotton fabric. "The Ethiopia plant will manufacture 2 million jackets, and the Amravati plant has a capacity of 3 million metres of linen fabric that will be added this year," Behl said. Raymond is also looking to expand its retail presence to about 1,500 stores by 2020. The company will open nearly 150-200 stores this year, Behl indicated. Raymond has more than 1,000 retail stores that are franchise based. Raymond brands include Raymond (ready to wear), Raymond Made to Measure, Color Plus, Park Avenue and Parx. It has also tied up with the Khadi and Village Industries Commission (KVIC) and launched its branded Khadi by Raymond to promote the fabric globally. "We are building capability in finishing, design, and distribution for khadi and investing step by step," he said. The new label will be available at KVIC outlets, besides its own, across India and leading e-commerce portals beginning August this year.
Source: India Bureau
The two-day strike of skilled, semi-skilled artisans and labourers, working in the powerloom sector, concluded here today. The Textile Mazdoor Union, the All India Trade Union Congress (AITUC) and the Centre of Indian Trade Union (CITU) jointly called the strike. Amarjit Singh Asal, secretary, Punjab AITUC, said the association of powerloom owners did not reciprocate their call to hold a meeting to discuss the hike in wages. He said workers’ associations decided to hold a three-day strike from June 14. Thousands of skilled, semi-skilled artisans and labourers working on Powerloom sector, which is mainstay of textile industry here, are demanding hike to the tune of at lest 25 per cent in their wages. The protesters said they were peeved over the attitude of the industrialists. It has been a tradition with associations of the workers and powerloom owners to periodically hold a meeting to develop a consensus on quantum of hike. The previous such contract had expired on November 30, 2016. The worker unions issued a notice to powerloom industrial units for a talk on revision of labourers’ wages, but got no response.
Source: Tribune News Service
Recent years have witnessed a technological up gradation in the textile manufacturing industry across the globe. Non-woven fabrics in the textile industry are those fabrics which are neither woven nor knitted such as felt. Non-woven fabrics are unique, engineered and high-tech fabrics which are manufactured by bonding together or felting of the fibers mechanically. Non-woven fabrics market has witnessed a shift owing to several advantages over the woven fabrics such as overlapping of yarns to create pores and waterproof. Global non-woven fabrics market is at an augmentation stage currently and is expected to witness substantial growth over the forecast period, 2017–2025. Some of the key factors which are creating an appreciation for the growth potential of non-woven fabrics are as follows high tensile & tear strength and also withstands high temperature for some applications. Global Non-Woven Fabrics – Market Dynamics, Segmentation Regional Overview and Key Players. Non-woven fabrics market hold anticipation due to the drivers having upward growth of the textile industry. Significant change in the lifestyle and convenience of emerging economies across the globe has triggered the growth potential for non-woven fabrics market. In addition, it was observed that the increase in disposable income of developing countries is some of the key drivers for the dynamic growth of non-woven fabrics market. Moreover, non-woven fabrics have lesser initial cost owing to mass production as compared to the woven and knit fabrics. Rapid industrialization and recent innovations in the field of textile technology are other factors fueling demand for non-woven fabrics globally. The growth of the global non-woven fabrics market is moderately hampered by higher cost for raw materials. Global non-woven fabrics market are facing challenges owing to increase in raw material prices. Non-woven fabrics market also faces problems related to increasing stringent regulations and norms for the textile industry. Non-Woven Fabrics Market Segmentation By Material Type – Polyamide, Polyester, Polyethylene, Polypropylene, Rayon, Others; By Technology Type – Needle Punch Non-woven, Spun Bonded Non-woven, Stitch Bonded Non-woven, Thermally Bonded Non-woven, Hydro Entangled Non-woven, Wet Non-woven; By End Use – Cement, Chemical, Power, Pharmaceuticals, Iron & Steel, Automobile, Others; The global Non-woven fabrics market is segmented on the basis of region such as: North America, Latin America, Eastern Europe, Western Europe, APEJ, Middle East & Africa, Japan. The market for Non-woven fabrics in North America is to remain dominant for the highest growth in revenue as compared to other regions over the forecasted period, 2017-2025. The market in Latin America for Non-woven fabrics is expected to witness above average growth for the further few years. The economic development in Brazil is projected to have a positive impact on the market for non-woven fabrics. In Western Europe, countries like Germany, France, and the UK are expected to have a stagnant growth of non-woven fabrics market over the forecast period. Eastern Europe is also expected to have anticipation in the growth potential in Russia and Poland for non-woven fabrics market. Non-woven fabrics market in India and China are expected to have considerable growth in terms of market value owing to technological advancements in the textile industries for these emerging economies. Furthermore, markets for non-woven fabrics in other regions of Asia-Pacific are also expected to have growth owing to increase in disposable income and spending power among the consumers of this countries. The Non-woven fabrics market in the MEA region is expected to witness a sizeable increase in the revenue contribution of the sales in GCC countries and South Africa. Few of the key players in the Non-woven fabrics market are E.I. du Pont de Nemours & Co, Ahlstrom Corporation, Avintiv, Inc., Kimberly-Clark Corporation, P.H. Glatfelter Co, Freudenberg SE, Suominen Corporation, Toray Industries Inc., Albarrie, etc.
Source: Lanews
Uzbekistan has signed more than 320 trade and investment agreements and contracts worth $44 billion since September 2016, said Uzbekistan’s Foreign Minister Abdulaziz Kamilov addressing a meeting of the Uzbek Senate. A report of the Uzbek foreign minister on the activities of the Ministry in developing foreign economic relations, attracting foreign investments and advanced technologies to the economy, developing tourism and strengthening the international image of Uzbekistan was read out for the first time at a Senate meeting. As it was previously reported, the work on attracting foreign investments for the economy of Uzbekistan was defined by President Shavkat Mirziyoyev as the most important priority of the country’s foreign policy strategy. “The attraction of investments to the national economy is determined as one of important issues of implementation of the strategy on further development of Uzbekistan in the next five years. To date, about 320 agreements and documents have been signed for a total amount of $44 billion,” said Kamilov. He noted that only according to the results of state visits of President Mirziyoyev to Turkmenistan, Kazakhstan, Russia and China, 239 agreements and contracts totaling $37.7 billion were signed. During the period, the Ministry continued its work on increasing the investment attractiveness of Uzbekistan abroad, on forming a positive image of the country in foreign business community, said the minister. The European Parliament approved a “textile protocol” between Uzbekistan and the European Union. “The entry into force of this document will not only increase the export of Uzbek textile products to the EU markets, but will also send a positive signal to Western investors for putting capital in Uzbekistan,” he added. Moreover, Kamilov noted the resumption of Uzbekistan’s cooperation with the European Bank for Reconstruction and Development (EBRD), as well as the preparation of an agreement with the European Investment Bank (EIB). The Ministry is working to facilitate the issuance of visas for big and reliable foreign investors, highly qualified specialists in order to increase tourist flow to Uzbekistan. Currently, there is a simplified visa issuance procedure with regard to citizens of 13 states visiting Uzbekistan for business purposes. According to a survey conducted jointly by the Uzbek Foreign Ministry and diplomatic missions, a number of businessmen and experts from reputable financial institutions that have experience working with Uzbekistan have named factors that inhibit the flow of investments to Uzbekistan. The problems of currency conversion and repatriation of profits, imperfection of the banking and credit system, weak protection of investors’ rights, administrative and bureaucratic barriers and low investment ratings are among them. The minister added that in order to improve the activities of the Foreign Ministry and institutions, operating abroad, in the foreign economic sphere, it is required, in particular, to approve the strategy of foreign policy and foreign economic activity of Uzbekistan for 2017-2021, to create an independent subdivision on international economic cooperation in the Foreign Ministry.
Source: Azernews
Textile-garment is among Vietnam's key export products to the United States. Hanoi (VNA) – The official US visit of PM Nguyen Xuan Phuc from May 29-31 demonstrates Vietnam’s consistent policy on enhancing trade relations with the US, which has been Vietnam’s top trade partners for the past 10 consecutive years. According to the America Market Department under the Ministry of Trade and Industry, Vietnam-US trade has maintained a high annual growth of about 20 percent since their Bilateral Trade Agreement (BTA) took effect in 2001. Last year, the two-way trade hit 47 billion USD, 33.5 times higher than the 2001 figure of 1.4 billion USD. In the first four months of 2017, Vietnam exported 12.4 billion USD worth of commodities to the US, mostly textile-garment, footwear, computers, seafood, farm products, timber and timber products, electronics and components. The figure represented 20 percent of the country’s total exports and an increase of 8.7 percent from the same period last year. Vietnam is now the US’ 16th largest trade partner with Vietnam enjoying high trade surplus. Vietnam has put its name on the US’s international trade partner map, said Tran Duy Dong, director general of the America Market Department, adding that in spite of difficulties posed by the US’s anti-dumping or anti-subsidy duties, Vietnamese exporters have learned from experience to grow stronger, continuing entering the market. Despite the US’s withdrawal from the TPP, the bilateral Vietnam-US trade and investment relationship will continue to grow, US Consul General in HCM City Mary Tarnowka confirmed. She expected the ties to grow stronger as Vietnam’s recent efforts on international economic integration reaffirmed its intention to continue its economic reforms and further open its economy. Tarnowka noted that those reforms will promote the establishment of a fair and transparent management system, allowing of the prediction of a new wave of trade and investment in the future. Experts believed that Vietnam is yet to become a major market for the US but increasing incomes of its citizens will stimulate consumption of luxurious brands, including those from the US. When US President Donald Trump launches a series of plans in Asia, the Vietnam-US ties will be a lever for the two countries’ mutual trade and economic benefits. The upcoming meeting between the two nations’ leaders will be a good opportunity to promote their shared strategic interests and create more jobs for their people. Authorities from both sides are closely working to improve their trade cooperation mechanisms for better facilitation of the bilateral trade. Tami Overby, Senior Vice President for Asia at the US Chamber of Commerce said the chamber is making effort to find ways for further boosting the Vietnam-US trade, including the possibility of a free trade agreement. She added that US companies need to be more creative in dealing with obstacles when entering the Vietnamese market. To support local companies in gaining access to the US market, Minister of Trade and Industry Tran Tuan Anh said besides programmes to build national competitiveness through branding and removals of duties and other technical barriers, the ministry has devised master plans to improve competitive edges for export products with the emphasis placed on those in manufacturing and processing industry. At the same time, enterprises must also take an active role in enhancing production capacity, developing market overseas, and becoming part of the global supply chain.-VNA
Source: VNA Monday
