The Goods and Services Tax (GST) Council has decided to levy 18 per cent GST on man-made fibre and yarn, while man-made fabric will attract 5 per cent GST. The higher GST rate on MMF and man-made yarn may lead to increase in man-made yarn prices while also creating confusion on input credit, according to powerloom weavers and traders from the textile hub of Surat. At the current rate of taxation, tax on yarn works out to approximately Rs 0.70 to Rs 0.80 per kilogram. As per the GST rate structure, tax would work out to Rs 2.5 to Rs 5 per kilogram, which will result in increase in yarn prices, textile entrepreneurs said on the sidelines of a seminar in the city. The seminar on ‘Impact and Implementation of GST in Textiles’ was organised by the Southern Gujarat Chamber of Commerce and Industry (SGCCI). Entrepreneurs also said that the GST slabs would create confusion among man-made fibre industry in getting input tax credit.
Source: Fibre2fashion
MUMBAI: Shares of retailers of affordably priced footwear and apparels soared in a flat market after the government announced a lower goods and services tax (GST) rate for cheaper products in these sectors.The new GST rates are expected to boost margins and also allow some of these companies to cut prices that could boost demand. Comparatively , retailers of premium brands may have to take larger price hikes to maintain margins, said analysts based on their preliminary reading of the tax rates. Shares of companies like Relaxo Footwears and Bata India Footwear costing up to Rs 500 currently attracts tax rate of 9.5%.Under GST, this would fall to 5% and footwear above Rs500 will be taxed at 18%. Similarly , all apparels below Rs 1,000 would attract 5%.Currently, the tax on apparels is 6-7%. The GST rate, however, for apparels costing above Rs 1,000 would continue to be 12%. gained 4.31% and 0.94%, respectively, on Monday. Apparel manufacturers and retailers like Aditya Birla Fashion and Retail, Arvind and Future Retail ended the day 4.84%, 3.14% and 5.08% higher, respectively. Analysts said stocks across both the sectors rose as the overhang from uncertainty in GST rate is now over. Analysts said the 5% tax on textiles was encouraging for the entire textile value chain and would augur well for the manufacturing segments of companies like Arvind and Raymond. “Mass market companies like V-Mart Retail, Future Retail, etc.will benefit more because they have more products priced below the Rs1,000-range compared to branded apparel makers like Aditya Birla Fashion and Retail, Arvind or Raymond, which may have to hike rates of products in their premium segment by 1.5-2%,“ said Himanshu Nayyar, vice-president consumer and retail at Systematix Shares & Stocks. Page Industries, the exclusive licensee of Jockey International in India, would be a key beneficiary of the new rate, said analysts. Most of Page's products are below Rs 1,000 while the company pays indirect taxes at 7-7.5%. A reduction in end prices may aid volume growth as consumers are expected to shift to premium brands. Within the footwear segment, analysts said the new tax rate would be between neutral and positive for brands like Relaxo Footwear. “70% of Relaxo's portfolio is under Rs 800, therefore, it has a significant benefit in that sense. The high competition from the unorganised sector in lowpriced footwear will also take a hit overall and the company will benefit from it,“ said Sachin Bobade, analyst at Dolat Capital.
Source: ETRetail.com
NEW DELHI — The Government of India as well as the governments of the Eurasian Economic Union (EAEU) member countries have decided to launch negotiations for an India-EAEU free trade agreement (FTA) shortly said Mr. Ramesh Abhishek Secretary Department of Industrial Policy and Promotion Ministry of Commerce and Industry. He was speaking at a session on ‘Eurasian Economic Union (EAEU) – India: A Strategic Partnership’ being organized as a part of the St. Petersburg International Economic Forum (SPIEF) in St. Petersburg Russia. The Secretary observed that India’s trade with the EAEU Region is barely USD 8.4 billion and this is well below potential. It is for this reason that India and the EAEU had decided to set up a Joint Feasibility Study Group on the India – EAEU FTA at SPIEF in 2015. This report has since been finalized and accepted by the Government of India and governments of the individual EAEU countries following which negotiations on the FTA are to be launched. He stated there was a need to promote connectivity between India and the EAEU region and the International North South Transport Corridor would be extremely critical for this purpose. Mr. Abhishek also highlighted the role being played by the “Green Corridor” in promoting trade facilitation between India and Russia. He felt that this Corridor could be extended to the other EAEU countries in due course. Speaking at the session Ms. Veronika Nikishina Minister for Trade Eurasian Economic Commission stated that the EAEU has so far only concluded one FTA with Vietnam and India would be the second. This demonstrates the importance being placed on India by the EAEU. Ms. Shobana Kamineni President CII noted that a strong FTA between India and the EAEU will help strengthen the India – EAEU strategic Partnership. Mr. Chandrajit Banerjee Director General CII stated that the potential India EAEU FTA is just one part of the strategic partnership. It will provide a foundation for further deepening of ties between India and members of the EAEU. Panelists at the session highlighted the opportunities that would open up in areas such as infrastructure development energy pharmaceuticals banking and finance IT and transportation among others.
Source: Tecoya Trend
NEW DELHI: The Goods and Services Tax, to be rolled out next month as the biggest tax reform since independence, will help India achieve 9 per cent growth rate, NITI Aayog CEO Amitabh Kant said today. He said GST will simplify India's taxation system and help deal with tax evasion. "GST is India's biggest tax reform since 1947...GST will help India in achieving 9 per cent growth rate," Kant said at an event here. Noting that the implementation of GST is a dream of Prime Minister Narendra Modi, the NITI Aayog CEO said it will bring a big revolution in India's taxation structure. Several experts have also said that GST is estimated to boost GDP by 1-2 per cent and bring down inflation by 2 per cent over the long term. Kant's comments come against the backdrop of India losing the fastest growing economy tag to China for the March quarter with the GDP growth slipping to 6.1 per cent. China recorded a growth rate of 6.9 per cent during the January-March quarter. However, on an annual basis, India grew by 7.1 per cent in 2016-17. Prime Minister Narendra Modi yesterday reviewed the preparedness for the new indirect tax regime, slated to be rolled out from July 1. The meeting was attended by Finance Minister Arun Jaitley, Revenue Secretary Hasmukh Adhia and senior officers from the Central Board of Excise and Customs (CBEC). This was the first review by the PM after the GST Council finalised the rates, and the second since May 2. This was the first review by the PM after the GST Council finalised the rates, and the second since May 2. The GST Council, chaired by Jaitley and comprising his state counterparts, has already finalised tax rates on almost all goods and services. It will meet again on June 11 to review some of the rates and discuss other pending issues. All goods and services have been put in slabs of 5, 12, 18 and 28 per cent, with the exception of gold and precious metals, which will attract 3 per cent GST, and rough diamond at 0.25 per cent GST.
Source: Financial Express
With only three weeks left for roll-out of the goods and services tax (GST) from July 1, millions of traders and businesses, big and small, are making a beeline for classes to learn the ABC of the new system. Industry bodies, such as the Confederation of All India Traders (CAIT) and the Retailers Association of India (RAI), are organising nationwide classes to teach traders the nitty-gritty and how to become GST-compliant. According to experts, while the value added tax (VAT) was not a tech-heavy tax regime and did not have many implications for businesses, the GST is based on technology and has a complex structure. “For traders who might not be tech savvy and have problems understanding tax intricacies, it is important we provide them with some hand-holding,” said Praveen Khandelwal, secretary general, CAIT. The classes elaborate on the various rules affecting a particular sector, offer on-ground guidance from consultants and provide information on software to be used for filing taxes, among other things. The trader body, which is going to organise as many as six “mega classes” all over the country over the next month, plans to make at least 100,000 traders GST-compliant. “We will organise one class each in the north, south, west, east, centre and northeast. We already have sponsors to finance these. The classes are divided into theoretical training and crash course in software, among other things. Not only that, we will teach them how to incorporate use of digital payments in the GST regime,” Khandelwal said. CAIT, in association with Acer India and Tally Solutions, launched on Tuesday ‘BIZGURU’, a plug-and-play business solution for seamless transition to GST. RAI is also organising interactive sessions in Mumbai and Delhi to educate the fraternity. The sessions am ied to help retailers eliminate hurdles in compliance of the GST rules. It has also started providing help via its official website. “Members of RAI deal with a variety of goods and services as they represent various retail formats. As they move into a new and complex regime, a help desk, with seasoned experts on the panel, will help extract collective wisdom and ease the move towards GST,” said Kumar Rajagopalan, chief executive officer, RAI. Many are also organising sector-specific workshops to ensure that any ambiguity attached to a particular business is addressed.
Source: Business Standard
NEW DELHI: Prime Minister Narendra Modi told the government’s top bureaucrats that they will be the torch bearers of the goods and services tax (GST) and impressed upon them that the finance ministry cannot bear the entire burden of getting the new regime up and running. GST, one of India’s most significant reforms in decades, is expected to be rolled out on July 1. In a two-hour meeting with all secretaries on Monday evening, the PM stressed that the “load-bearing of GST cannot be borne by a single pillar of ministry of finance,” a secretary present at the meeting told ET. “The PM said there have to be multiple pillars and an integrated implementation of GST should be worked out by all ministries in which GST has a bearing. He said all secretaries have to take the leadership role in implementing GST.” Toward this goal of working as a team, all ministries have been asked to set up GST Facilitation Cells headed by a senior officer or the ministry’s economic advisor. “The PM said every ministry should open up a website or have a sector-oriented call centre to answer queries from stakeholders so that GST should become a success,” an official said. “He pointed out that crores of transactions would be involved. Hence, the effort should be on facilitation and answer queries even at night if required, the PM told us.” Each ministry “should study their relationship with GST” and take stock of all possible problems that could arise and allay concerns of the stakeholders before July 1, he was cited as saying. Cabinet secretary PK Sinha has separately written to secretaries asking for “all possible support” for the new levy and said the proposed GST facilitation cells to be set up by each ministry would interact with industry. “To ensure smooth and successful rollout, it is essential that all stakeholders in government as well as outside are adequately prepared for GST,” Sinha in the letter, which ET has seen. “While Department of Revenue is ensuring adequate infrastructural and legal preparedness of central and state tax network, it is imperative to ensure that all sectors and businesses are ‘GST Ready’ as well.” The cabinet secretary has further stressed that industry will need to be provided with all possible support. “While Department of Revenue is making helplines operational for any individual taxpayer to seek resolution of any legal or IT issues, the GST facilitation cells in each ministry would serve as the first point of contact for addressing any issue being faced by any sector related to your ministry. This would greatly facilitate the roll-out of GST. The cell should be in constant touch with major industry and business associations related to your ministry,” Sinha told secretaries. All ministries have been asked to call meetings with chairpersons of PSUs so that each of them also constitutes a GST facilitation cell. Secretaries present at the PM’s meeting on Monday said he described GST as a “mega step” and spoke virtually like a CEO.
Source: Economic Times
Minster of State for Commerce, Nirmala Sitharaman recently announced that the review of foreign trade policy will be completed prior to July 1 when GST will be rolled out. This review is especially important since it is being done in an environment where India is under some pressure to move away from post-export incentives that are increasingly not compatible with WTO rules. Besides incompatibility with WTO, giving incentive to a firm that is already exporting somewhat counter-intuitive as it is essentially rewarding a successful and therefore competitive exporter. Logically, investment in developing firm or sector level competitiveness requires support at the pre-export stage. Pre export production related subsidies and government support measures are more compatible with WTO rules and extensively used across the world. However, production level support or incentives are expensive since benefits cannot be limited to just successful exporters like in the current schemes, but are potentially open to all manufacturers and service providers. Thus, the burden on the exchequer due to either tax foregone or direct financial support can be substantive. Paradigm shift. An export development programme reliant on production-based subsidies therefore require targeting of specific sectors in a manner that helps develop competitiveness, but with some discrimination criteria that ensures that the scheme is not open to all. Designing such programmes would require institutional capacity to develop the right criteria, transparent administration of such criteria in the distribution of benefits, and close cooperation with industry associations and sectoral export promotion councils. The current administrative machinery is insufficiently prepared for such an exercise. But radical overhaul is necessary not just to make our incentives more compatible with WTO rules, but also to address the serious challenge posed to Indian industry by industrialisation 4.0 and automation. India will not be able to replicate the low-wage-middle-skill manufacturing boom that worked for China and other SE Asian countries, given the current shifts in technology and consumer preferences. McKinsey analysis shows that over 235 million jobs in India are at risk from such changing dynamics. Starting from this current round of foreign trade policy making cycle, policy makers need to give serious consideration to completely over-hauling the way exports are incentivised in India. Public-private venture capital to fund innovation and productivity: New product development, financing strategic tie-ups with global partners or expansion of product line are all projects that have a certain amount of risk tied to it. Exporters, especially small and medium exporters find it difficult to find right kind of financing for such projects. Private venture capital is not interested in smaller projects. In many cases the risk is seen as too high.One way to lower the risk and increase the appetite for the private sector is to create a public private partnership (PPP) venture capital fund with the government infusing about 25 per cent of the seed capital and private sector players the rest. Private sector would also bring in the professionalism of venture capital managers. The Irish government did this for their technology sector based exports with some success. The Indian government too can create such venture capital funds for a few critical sectors with potential for future growth and employment generation. These could include the next generation of high-end textiles, machine tools, pharmaceuticals, or data analytics or remotely delivered health services for example. To make such a scheme even more attractive, it can be supplemented by an ‘Angel Law’ modelled on an Israeli incentive programme that allows venture capital investors putting money in such higher risk projects to deduct a portion of their investment amount out of their taxable income.Funding performance pay based business development: Larger firms benefit from professional help of consultants. In industrialised countries, highly evolved clusters provide hand-holding services to exporters on product development, marketing, and sourcing of inputs. Most of these services are ‘performance based’; in other words, consultants charge a very low base fee, and take a share of actual profits made by the firm due to successful product or business development execution. The Indian export eco-system (except some large firms) is largely bereft of such a focused professional business development ecosystem. The government can run a special programme, in partnership with export promotion councils, to engage such professionals. The recruitment process should be through transparent global tenders, and the contract should be designed in a way that professionals get paid a majority of their fees based on their actual performance, i.e. export growth or export volumes. Interested exporters can approach these professionals with proposals. The exporting house would be expected to bear a percentage of the professional’s fees, which would mean they also invest in the successful implementation of the project. The access to these services with the initial state subsidy would help level the playing field for Indian exporters’ vis-à-vis competition. Supporting recruitment and training of new skill sets: The key to adaptation to new technologies and production methods that are rapidly replacing the old ways of the factory and office would be having the right kind of human resources with skills and know-how to work with artificial intelligence, big data, robotics, and factory floor automation. Such changes would not be confined to just technology intensive sectors like auto industry or IT enabled services, but extend to textiles and food processing. One way to handle this transition would be for the government to bear a portion of the cost of hiring such skill-sets for SMEs and start-ups. Many countries provide indirect incentives for acquisition of skills that allow the firms to adopt new technologies and increase productivity. A simple scheme is to give a certain percentage of salaries hired by MSME for such advanced talent as an incentive. Allowing a certain portion of such salaries paid as a deductible from net income would be another way, using the tax foregone method. The key is for government to start considering the range of possibilities available and develop the institutional framework within the bureaucracy and industry. The country has no options but to incentivise competitiveness and productivity in line with the new industrial future. Hopefully, the foreign trade policy announced in June would provide the first step in that direction.
Source: Business Line
Power loom industry in India – AFP India has doubled the compensation for the death of power loom workers in its textile industry as part of a benefits scheme to weed out problems plaguing the labour-intensive sector. India is one of the largest fabric producers in the world and has traditionally been a cornerstone of the Indian economy in terms of foreign exchange earnings and employment. Power looms contribute around 70 per cent of the total jobs in the textile industry, employing around 6.5 million people. A single person, working 12 hours or more, often tends to six to nine looms inside cramped spaces, exposing them to loud noise and injuries from the shuttle that moves at a high speed across the loom. Nearly 60 percent of the fabric and garments they produce is exported. The government's worker protection scheme, called PowerTex India, was launched in April and includes a helpline for workers and subsidies for employers to upgrade their machinery. “We have to develop the textile value chain and upgrade the technology to be more competitive,” India's textile commissioner Kavita Gupta told Reuters. “All the schemes are aimed at addressing drudgery, to better the working conditions and modernise infrastructure. If the sector has to grow, workers have to grow. Workers often work long hours because of erratic power supply, an issue the government is trying to address by providing solar panels to factories” she said. The insurance coverage - 200,000 rupees ($3,100) in the case of a natural death and 400,000 rupees for accidental death – was rolled out this month, in addition to disability compensation of 200,000 rupees. A study by India's National Institute of Occupational Health found that power loom workers are exposed to more than 100 decibels of sound - equivalent to the sound of a jackhammer or lawnmower - putting them at severe risk of hearing loss. Most workers die after they are no longer able to work and have returned to their villages. About 20,000 workers have signed up for the scheme so far. Campaigners worry enrolment could be low because employers are worried about incurring more costs per worker and therefore reluctant to disclose their staffing. “If power loom units (factories) declare them as employees, they will have to extend other social benefits as required by the law,” said Jagdish Patel, labour researcher at Gujarat-based charity People's Training and Research Centre.
Source: Vatican Radio
KOCHI: Apparel Manufacturers of India (AMI), the leading apparel group of manufacturers and traders, inaugurated the 11th edition of their trade fair in Kochi on Tuesday. More than 350 key retailers from Kerala, Karnataka and Tamil Nadu participated at the fair trade. The three-day event will see participation from manufacturers and traders of ready made and unstitched garments. AMI had hosted its first exhibition in January 2015 with the aim of bridging the gap between retailers, agents and suppliers. “The industry stands at an inflection point now. The GST roll-out will be a game changer for the industry,” Kamlesh Nanda, Key Organizer, Apparel Manufacturers of India said. Stressing that retailers, agents and suppliers are the backbone of the industry, he said it is exciting to see the enthusiasm amongst them. “We are sure this will continue over the next two days,” he added.
Source: The New Indian Express
ASEAN and South Asia are building infrastructure at an unprecedented rate. Anyone who travels the capital cities of this region knows it for a fact. All this construction is transforming the city centres and areas of economic activity, and the lives of 2.4 billion people. It is also connecting people and businesses to opportunities, both within and beyond the region. But despite all the construction underway, ASEAN and South Asia have even more to build. The way these projects are scoped, structured, financed and supported will also need to change in order to meet their full economic potential. At the World Economic Forum (WEF) on ASEAN in May, government and business leaders agreed that deeper public-private collaboration is needed to narrow the infrastructure gap. To advance blended finance for sustainable infrastructure, WEF and the Organisation for Economic Cooperation and Development will form an ASEAN Hub using the PPP approach. It will bring together governments, banks, pension funds, and philanthropic organisations to catalyse $100 billion of projects. This is a step in the right direction, but more needs to be done. The Asian Development Bank estimates that developing Asia will require $26 trillion by 2030 to meet its infrastructure needs. Securing this funding is crucial. Progress on infrastructure will mean the development of an economic hub. A unified production platform and marketplace will strengthen regional trade and investment activities, and drive trade with the rest of the world. In our experience, there has been no shortage of capital for infrastructure projects. On the contrary, there is now unprecedented demand for well-structured initiatives with the right risk-reward balance. In a sustained low yield environment, infrastructure projects are an asset class with attractive long-term returns. While the public-private partnership (PPP) scheme is a valuable solution for the lack of infrastructure budget, one other collaboration needs to be reinforced. Banks’ role in financing long-term assets is evolving and will continue to evolve as IFRS 9, a major accounting change, comes in 2018. But even through these changes, banks will play a key role in originating infrastructure assets. A close partnership between banks and investors is a necessary condition for infrastructure development success. Banks experienced in project financing understand the challenges that institutional investors face when investing in infrastructure. There is a lack of in-depth knowledge and skills in project risk valuation and pricing among these investors, yet they are held accountable for their decision-making. But when banks are engaged, projects will be structured and funded to a level where they become financeable for pension funds, sovereign wealth funds and philanthropic organisations. Bank-investor-government collaboration as a three-way partnership is an even more robust and sustainable partnership. A well-defined and fair model is one that provides an appropriate risk allocation and addresses the minimum expectations of investors. Infrastructure projects that meet these prerequisites will generate both economic returns and social benefits. While the priority of the infrastructure agenda is focussed on the “hardware” of getting projects agreed upon, financed and implemented, the availability of the right “software” cannot be underestimated. And much of this “software” development needs to happen long before each infrastructure project breaks ground. A key “software” is a stable policy environment, which is critical to ensure that decision-making is not fragmented and goal posts are not moved mid-project. A transparent, predictable and independent regulatory regime underpinned by a sound legal framework will instil investor confidence. While these conditions can help minimise currency and commodity risks for international investors, early assessment and management is still vital to the success of each project. And to reduce risk perception of infrastructure projects, governments can rope in multilateral agencies to provide insurance or guarantees. Skills are also essential “software”. The continuous provision of the necessary skills, either via the exchange of expertise and experience or through local upskilling, is important. Over time, the way infrastructure is getting constructed has changed. We need to build a labour force well-trained on new techniques and technologies to ensure we can build infrastructure in an efficient and environmentally-friendly manner. More importantly, we need to develop a central and specialised pool of resources that can be deployed to cross-border projects of higher risks and complexity. Through the sharing of staff and exchange of expertise, the teams will quickly gain experience throughout the entire project lifecycle. Undoubtedly, the right skills and tools will better prepare the region for the evolving demands of an increasingly connected world. ASEAN and South Asia are paving the way—literally and figuratively. Nothing short of political will and strong partnerships are required to deliver the full potential of this enormous wave of infrastructure investment.
Source: Financial Express
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$ 48.03 per barrel (bbl) on 06.06.2017. This was lower than the price of US$ 48.58 per bbl on previous publishing day of 05.06.2017. In rupee terms, the price of Indian Basket decreased to Rs. 3090.97 per bbl on 06.06.2017 as compared to Rs. 3126.13 per bbl on 05.06.2017. Rupee closed unchanged at Rs. 64.35 Per US$ on 06.06.2017 as compared to 05.06.2017. The table below gives details in this regard:
|
Particulars |
Unit |
Price on June 06, 2017 Previous trading day i.e. 05.06.2017) |
Pricing Fortnight for 01.06.2017 (May 12, 2017 to May 29, 2017) |
|
Crude Oil (Indian Basket) |
($/bbl) |
48.03 (48.58) |
51.67 |
|
(Rs/bbl) |
3090.97 (3126.13) |
3331.68 |
|
|
Exchange Rate |
(Rs/$) |
64.35 (64.35) |
64.48 |
Source: PIB
The state government of Telangana has placed an order for one crore saris worth Rs 200 crore with powerloom weavers in Sricilla town of Rajanna district of the state. The saris are to be distributed by the government to women living below the poverty line during Bathukamma—the nine day floral festival celebrated usually in September–October. The saris would be produced on 20,000 powerlooms including Mutually Aided Co-operative Societies (MACS), small scale industries (SSIs), individual powerloom weavers and the Textile Park. State handlooms development commissioner Shailaja Ramayyar has met with the owners of MACS, SSI and others and has asked them to supply the saris by August 15, according to a media report. The state government has also placed orders for bedsheets and blankets for hospitals with powerloom weavers in Sircilla, the town which has been in the news for high suicide rates due to unemployment.
Source: Fibre2Fashion
Textile firm Mafatlal Industries on Monday said it will make a foray into apparel business by introducing ready-to-wear fashion wear at affordable pricing. Textile firm Mafatlal Industries on Monday said it will make a foray into apparel business by introducing ready-to-wear fashion wear at affordable pricing. "We want to make a strong foray into the apparel business and for this we have identified three-four anchor categories," Mafatlal Industries MD and CEO Aniruddha Deshmukh told reporters here today. Mafatlal Industries was a popular and leading brand of yesteryear and now the company wants to restore the same old glory, Deshmukh said. "Our main strength is fabrics. We are one of the large manufacturers of denim in the country, and we also supply to domestic brands and international brands," he said. "The other large business we have is textiles, where we do basically shirting fabrics, whites and prints ... we are also doing school uniforms and the size of this business is about Rs 300 crore," he said. On the company's foray into ready-made segment, Deshmukh said, "As a fabric company, at some point of time it will need to make an entry into the ready-made segment. It is sort of a relaunch for us because the brand has been around for some time, but somehow never got the traction or momentum." "Our intention is that we convert our expertise and skill in fabrics into ready-made," he added. "In apparel business, there are two-three anchor categories we will focus on. Mafatlal countrywide is known for its whites and we want to bring it in ready-made. In denims, we are manufacturers for nearly 20 years. We have a medium-sized plant in Gujarat," he said. He said the company has a good retail presence mainly in western region. "But we are now going to expand into regions including north, where we see a good scope." "One thing we have seen is that the more well known the brands are their products are probably not as fashion forward as some of the products from the not so well known brands. So, our focus will be on high fashion products, we want to be a niche player, but very very affordable," he said. He said another category which the company is looking at is T-shirts. "All these things will be the focal points of our collection. We are starting off from the north region and then we will spread across," he said. Mafatlal Industries is part of Rs 1,300 crore Arvind- Mafatlal group. To another question, he said, "The real revenue targets will probably start one or two years down the line. Priority at the moment is to get our products and distribution right". Sheeren Gupta, Vice President--Sales and Marketing of MIL said one of the key things which the company is focusing on is pricing of the products, which will be very competitive. "We are not in the premium segment, but the products will definitely look premium. Our range will be Rs 899 to Rs 1499 for shirts, T-shirts will be priced at Rs 899- Rs 999 and denims for Rs 1499 to Rs 1699," Gupta said.
Source: moneycontrol.com
MUMBAI: Work on JNPT's Rs 30,000-crore Vadhavan port project in Dahanu has come to a halt following directives from the Dahanu Taluka Environment Protection Authority (DTEPA) saying no work could take place without seeking its permission. "At this point, even survey work has been stopped. We will discuss the order with the shipping ministry and the Union transport secretary. We will also take legal advice," said JNPT chairman Anil Diggikar. The project envisages reclaiming 5,000 acres of land from the sea to build India's first foreshore port. Dahanu taluka, located 140 km from Mumbai, is an eco-sensitive zone. The DTEPA was set up in 1996 to protect the ecologically fragile area. On May 30, the DTEPA headed by retired high court judge C S Dharmadhikari, objected to being bypassed for permissions by the government and said no work should take place without seeking its nod. JNPT has yet to begin construction on the port and was conducting surveys to prepare a project report on the port's feasibility. The report was to be ready in July. In November 2016, the state wrote to the ministry of environment and forests (MoEF) asking for the port to be excluded from the eco-sensitive zone, saying it is a foreshore facility. "We are also following up with the environment ministry on this issue," Diggikar said. The DTEPA rejected permission for the port in 1998. It met on May 30 in response to a petition from Narayan Patil of Vadhavan Bandar Virodhi Sangharsh Samiti, which said construction of the port would violate the DTEPA's rejection of the proposal. The DTEPA said so far its 1998 decision ruling out the port had not been overruled. It said developing the port went against coastal regulation zone rules. "As per CRZ regulation no construction is permissible within 500 metres of the high tide line, then how can any construction be permitted in the sea itself is a basic question," the DTEPA order said. At the meeting, principal secretary (transport and ports), home department, said the survey and all related investigations will be stopped immediately and no further steps will be taken without the permission of the DTEPA.
Source: Times of India
By Our Staff Reporter MUMBAI JUNE 06— Running into its 4th edition India’s finest home fashion business platforms – Heimtextil India & Ambiente India will open doors this month from 20 – 22 June at Pragati Maidan New Delhi. all the categories of textiles in the world markets the country has emerged as the second largest supplier of home textile products only after China while domestic demand is constantly on rise. With an eye on the growing prospects of the Indian Textile Minister Smriti Irani is expectedto inaugurate and address at this important gathering and unveil the World’s largest cushion representing ‘Fabrics of India’ at the fair. Heimtextil & Ambiente are the world’s largest trade fair brands for the home textiles and consumer goods sector which set the trend barometer globally. In India the sister fairs Heimtextil India & Ambiente India – present first-look if the new season’s collections for the Indian market. India is carving a distinct place for itself in home textile and interior décor space worldwide. The country accounts for 7 per cent of global home textiles trade with Indian products gaining a significant market share in the past few years. Spanning virtually across over 180 leading companies from India Bangladesh China Korea Nepal and Thailand will present their stunning collections in Dining Living Giving and Home Furnishing segments at this three day fair in New Delhi. Top home fashion players including D’décor Welspun Reliance Raymond AWKenox Steel Flair Houseware Organic Home (Stonemen Crafts) Lifestyles 360 Degree Gomaads are expected to launch the latest collections aimed at Diwali and upcoming festive seasons in India. Highlights at the fair include: * Record-breaking showcase: World’s largest cushion to be unveiled by Hon’ble Textile Minister Smriti Irani * ILA Experience Zone: One of the central attractions at the show the ILA Experience Zone will feature innovative concepts in interior spaces through a design face-off between product and textile designers. * Special Skills Zone: Live demonstrations of different art forms by specially-abled children Organised by Messe Frankfurt Trade Fairs India this leading home fashion business event will open its doors on 20 June in New Delhi.
Source: Tecoya Trend
|
Item |
Price |
Unit |
Fluctuation |
Date |
|
PSF |
1098.23 |
USD/Ton |
-0.33% |
6/6/2017 |
|
VSF |
2174.42 |
USD/Ton |
0% |
6/6/2017 |
|
ASF |
2321.34 |
USD/Ton |
0% |
6/6/2017 |
|
Polyester POY |
1107.78 |
USD/Ton |
-0.13% |
6/6/2017 |
|
Nylon FDY |
2600.48 |
USD/Ton |
0.57% |
6/6/2017 |
|
40D Spandex |
5215.66 |
USD/Ton |
-0.84% |
6/6/2017 |
|
Polyester DTY |
2438.87 |
USD/Ton |
0.61% |
6/6/2017 |
|
Nylon POY |
2497.64 |
USD/Ton |
0% |
6/6/2017 |
|
Acrylic Top 3D |
1336.97 |
USD/Ton |
0% |
6/6/2017 |
|
Polyester FDY |
2806.17 |
USD/Ton |
0.53% |
6/6/2017 |
|
Nylon DTY |
5818.03 |
USD/Ton |
0% |
6/6/2017 |
|
Viscose Long Filament |
1351.66 |
USD/Ton |
0% |
6/6/2017 |
|
30S Spun Rayon Yarn |
2835.56 |
USD/Ton |
0% |
6/6/2017 |
|
32S Polyester Yarn |
1685.17 |
USD/Ton |
-0.43% |
6/6/2017 |
|
45S T/C Yarn |
2703.33 |
USD/Ton |
0% |
6/6/2017 |
|
40S Rayon Yarn |
2982.48 |
USD/Ton |
0% |
6/6/2017 |
|
T/R Yarn 65/35 32S |
2321.34 |
USD/Ton |
0% |
6/6/2017 |
|
45S Polyester Yarn |
1836.50 |
USD/Ton |
0% |
6/6/2017 |
|
T/C Yarn 65/35 32S |
2277.26 |
USD/Ton |
0% |
6/6/2017 |
|
10S Denim Fabric |
1.36 |
USD/Meter |
-0.11% |
6/6/2017 |
|
32S Twill Fabric |
0.86 |
USD/Meter |
-0.17% |
6/6/2017 |
|
40S Combed Poplin |
1.19 |
USD/Meter |
0% |
6/6/2017 |
|
30S Rayon Fabric |
0.66 |
USD/Meter |
0% |
6/6/2017 |
|
45S T/C Fabric |
0.67 |
USD/Meter |
0% |
6/6/2017 |
Source: Global Textiles
Note: The above prices are Chinese Price (1 CNY = 0.14692 USD dtd. 06/06/2017). The prices given above are as quoted from Global Textiles.com. SRTEPC is not responsible for the correctness of the same.
THE National Union of Textiles, Garments and Tailoring Workers of Nigeria, (NUTGTWN) on Monday advised the Federal Government to develop a sustainable fund through the Bank of Industry, to revive the textiles industry. Mr Ismail Bello, Deputy General Secretary of the union, in an interview with the News Agency of Nigeria, (NAN) in Lagos, stressed the need for the release of a bailout fund for the textiles industry. NAN recalls that in 2009, the late President Musa Yar’Adua released a N100 billion textiles and garments development fund, for the revival of Nigeria’s textiles industry. In the 1980s, the sector with over 175 functioning textile mills, employed over 700,000 workers and was said to be the second highest employer of labour after the government. According to Bello, the Cotton, Textiles and Garments industry needs between N500 billion and one trillion to function optimally. He said that in spite of the N100 million bailout, the sector still faced various challenges that have made it difficult for it to achieve much progress. “There is the issue of other charges and interest rates that go with the money received by the textile manufacturers. Government can reduce the interest rate to one or even zero per cent.’’ “Government knows that when industries are working, jobs are created and taxes are paid, there is multiplier effect in the economy, therefore, we need to go back there,’’ he said. The union’s deputy general secretary also identified poor electricity supply as a challenge that has made the industry not to produce goods that could compete favourably in the market. “Power remains critical for the growth of the industry. Manufacturers generate 70 per cent of their power needs. “They use diesel, gas and black oil as alternatives to electricity and these are all expensive. “We, as a body has made several presentations to the electricity companies to supply gas to textile manufacturers at three dollars per cubic metre, as it is supplied to the Generation Companies. “But the electricity companies insist on giving to manufacturers at 7.38 dollars per cubic metre. All this adds to the costs of production,’’ he said. Bello said that if smuggling could be curbed to the barest minimum, local fabrics would be able to compete effectively in the market. “The costs of electricity supply, bad roads, multiple taxes and administrative bottlenecks have contributed to increase in the prices of locally-made textiles, as against the smuggled ones,’’ he said. The foreign exchange, Bello said, should be stabilised, to enable genuine importers to bring in raw materials for their businesses. He advised the government to protect the local market, to ensure that ‘Made in Nigeria’ products are able to find some space in the market.
Source: Nigerian Tribune
Mr Segun Awolowo, the Chief Executive Officer, (CEO) Nigerian Export Promotion Council (NEPC), says government must invest more in the fashion/ textile industry to solve the rate of unemployment in the country. Awolowo said that the industry was a viable sector to invest in because the country is blessed with a vast land to cultivate cotton the major raw material required by the fashion industry. He said these as the grand finale of the Africa Fashion Week Nigeria (AFWN)2017 held at the National Theatre in Iganmu, Lagos. According to him, the country’s goal is to position the manufacturing industry as a viable sector for boosting the non-oil export sector so as to increase its economic growth. The NEPC boss said the government would be achieving this by investing in the textile industry that would serve as the spring board for the resuscitation of the fashion industry. Awolowo commended Ronke Ademiluyi, the founder of AFWN for initiating the fashion show that tends to promote African fabrics and designs. He advised the exhibitors and designers to improve on their present standards so that their products would be able to compete with their peers internationally. “The fashion industry presents a great opportunity in boosting our country’s export globally. “The government recognises these potential in our fashion designers and exhibitors but they need to improve on the values and contents of their products. “Ademiluyi has demonstrated that Nigerians will sustain this initiative in response to the government’s projection going by her activities,” he said. Also, the Ooni of Ife, Oba Adeyeye Ogunwusi, advised the government to empower the country’s youths so that they could become self-reliant, self-dependent and self-sustaining. Oba Ogunwusi, the patron of AFWN, represented by Chief Adebanjo Adetinu said that the government could achieve this by identifying and supporting the creativity potential among youths. The traditional ruler said this was projected in the Africa fashion week programmes where fashion designers and exhibitors displayed their talents to the admiration of the guests and visitors. Ogunwusi, the grand patron of AFWN, said the artistic creativity of both the models and designers would fill up the vacuum created by unemployment among youths. “Such an innovation by Ronke Ademiluyi is filling the vacuum created by unemployment among our youths. “She only needs more sponsors to boost the project,” he said. Another community leader from Ife, Chief Babatunde Adetokunbo, advised other fashion promoters to emulate AFWN by celebrating and boosting the nation’s culture and tradition through their creativity. “Our culture is worth celebrating we should be proud of it. “What Ronke is doing is worth emulating, we should display and celebrate our culture, it is unique and I am proud of it,” he said.
Source: Vanguard
ISLAMABAD: In a move that will further widen the gulf between businessmen and the government, the textile sector questioned the credibility of Prime Minister Nawaz Sharif’s Rs180 billion textile package after the finance ministry allocated a meagre sum of Rs4 billion to fund it. In a press conference attended by representatives of all the leading associations, the textile sector rejected the budget 2017-18 due to meagre allocations and increase in income tax and sales tax rates. Pakistan’s textile industry wooed by technology. The budget is a sheer disappointment for the textile sector, as the government has allocated only Rs4 billion against a total textile package of Rs180 billion, said All Pakistan Textile Manufacturers Association (Aptma) Chairman Aamir Fayyaz. He said that it was also a matter of prime minister’s credibility who announced the package but the finance ministry allocated only Rs 4 billion. In January this year, PM Sharif had announced the Rs180-billion package for a period of one and a half years to support nose-diving exports by lowering duties on import of raw cotton and giving rebates on exports. However, just after four months, the finance ministry partially withdrew the package by again increasing duties and taxes on the import of cotton for the sake of Rs10 billion revenues. The PM’s package envisaged Rs7.3 billion per month rebate on export proceeds, which is expected to remain unfunded due to lack of budgetary allocations. “The finance minister should honour the prime minister’s word and make Rs180 billion allocation in the budget before it is passed by the National Assembly,” demanded the Aptma chairman. The textile ministry had sought Rs40 billion for the next fiscal year 2017-18 but the finance ministry did not agree, apparently to artificially show budget deficit at the lower end. During the National Economic Council meeting, Finance Minister Ishaq Dar had assured the Punjab chief minister that the federal government would provide adequate financial resources in the budget to support the textile sector. However, it did not happen. The partial funding of the package is a joke, as exports cannot be revived on mere official pronouncements, said Fayyaz. He said that when the PML-N government came into power the country’s exports stood at $25 billion that have now slipped to $20 billion under PM Sharif’s watch. The Aptma chairman said that at a time when Pakistan’s exports were on decline, Bangladesh, India and China have increased their exports. The meagre allocation for the textile package is likely to further widen the trust deficit between the business community and the government. The industrialists have already shown their unhappiness over the extension of Super Tax into a third year, which was contrary to the promise made by Dar. For the outgoing fiscal year, against Rs9.7 billion in claims, the finance ministry released only Rs2 billion to pay rebates. In the given circumstances, it is difficult to achieve the overall export target of $36 billion or 12% of Gross Domestic Product, said Fayyaz. Had the finance minister given half the time he spent begging the IMF to the textile sector, exports would have increased, he added. The Aptma chairman claimed that the Federal Board of Revenue (FBR) has also blocked Rs100 billion sales tax refunds to inflate its revenues. The sector also sought a cut in electricity tariffs. Textile ministry opposes duty on cotton import. The chairman of Pakistan Readymade Garments Manufacturers Association said that the garment industry has become internationally uncompetitive due to high cost of doing business. He said the industry did not need concessionary loans, but the government should release all pending refunds.
Source: The Express Tribune
A group of historic textile manufacturers in Greater Manchester which undertake projects for brands such as Mothercare, Marks & Spencer and John Lewis has been sold out of administration, saving more than 100 jobs. Cliq Designs, JH Cunliffe & Company, Bolton Textiles and Inhome Soft Furnishings entered administration on 23 May 2017, with Jeremy Woodside and Chris Ratten of RSM appointed joint administrators. RSM said that the companies, which are based across two sites in Bolton and Rochdale, had suffered challenging trading conditions due to increased competition reducing sales margins. In addition, the companies had been suffering cash-flow issues for some time. Following the arrival of administrators, the group of companies were sold to newly incorporated company Bolton Textiles (Group). According to Companies House, the buyer's sole shareholder and director is Joshua Dawson who has no other active directorships. Jeremy Woodside, RSM Restructuring Advisory partner and joint administrator, said: "The deal saves a group of historic Lancashire manufacturers, which is not only great news for the 102 employees and the wider Lancashire economy, but it ensures continuity to the companies' loyal customers." According to its website, JH Cunliffe & Company has been involved with textiles manufacturing since being established in 1878. The company, which provides sewing services to the textile industry spanning products such as bedding, curtains and clothing, undertakes project for brands such as Mothercare, Marks & Spencer and John Lewis. All work is undertaken from its four-storey, 70,000 sq ft mill in Rochdale.
Source: Inside Media
Mayer & Cie, a leading circular knitting machine manufacturer, was represented at the latest IGATEX, Pakistan’s most important textile industry fair, which took place from 26-29 April in Karachi, by its local representative Noon. Previously held in Lahore, this year the fair took place in Karachi for the first time. The company’s staff appreciated both the fair’s move to Karachi and this year’s edition in general, the company reports. “Visitors were mostly decision makers, which always brings lot of satisfaction to the exhibitors. This year, numerous machines suppliers have physically displayed their machinery on their booth. It was a bit like ITMA,” commented Nadeem Ul Haq, from Noon.
Pakistan’s textile industry
The textile industry is one of Pakistan’s most important industries. Because it is clearly export-focused, the country competes with its neighbouring countries India and Bangladesh. While they have reported a significant increase in textile and clothing exports, Pakistan’s exports have declined, the company reports. “International knitwear sales have remained almost flat, too. An incentive package is to boost the industry again. It comprises withdrawal and concessions on customs duty and sales tax on imports,” the manufacturer explains. International manufacturers of textile machinery such as Mayer & Cie. are very likely to profit from this initiative, as Pakistani imports in their sector are substantial already. In terms of circular knitting, single jersey machines are especially sought after, followed by interlock and jacquard machines.
Visitors
Mayer & Cie. refrained from displaying machines at IGATEX. The company presented itself via the Noon team, posters and the company logo. Their machines remained to be a topic of conversation nonetheless. “Many clients approached us about the machines producing mattress covers, that is machines from the OVJA family. Visitors enquired about spinitsystems, too,” said Nadeem Ul Haq. “The very well-organised fair definitely has a positive effect on the Pakistani textile industry.” According to Nadeem, the only downside was the number of callers to their booth: “While we were very happy with the quality of our guests, we counted fewer visitors than we had expected.”
Source: Knitting Industry
Ipeker Textile based in the northwestern Turkish province of Bursa has become the world's first producer of vegan fabric. After completing an approval process in Switzerland and Germany, the company's fabric was granted the 'V-Label' from the European Vegetarian Union (EVU). The company's global brand will be sold on market with a certificate code starting with 'TR.' The company was certified to with the V-Label May 2, a member of the board of directors of the Ipeker Textile Ihsan Ipeker said. According to Ipeker, the certification process was thorough because EVU-given V-Label is the most trustworthy vegan/vegetarian certificate. "We have documented that there are no animal ingredients or proteins in the 146 different types of fabric we produce. In our production process, we provide continuity without harming nature and life," Ipeker said. Ipeker Textile is a Turkish company that exports its products to more than 100 clients in 52 different countries.
Source: Daily Sabah
Moglino, a special economic zone located in Russia’s Pskov region, is expected to become one of the centres of technical textiles production in Russia in the coming years, thanks to the planned commissioning of at least two new production facilities by the end of this year. The first of these facilities will be built by Istrem LLC, one of Russia’s leading technical textiles producers, which plans to invest up to RUB 1,2 billion (US$ 20 million) in the new plant. Under the terms of the project, this will be jointly implemented with Finentrep, a French executive consulting and project management company. The new factory will focus on the production of technical textiles with polyurethane covering. Istrem LLC hopes that the new plant will be officially commissioned in the middle of next year and will have the capacity to produce up to 1 million square metres of technical textiles per year. Finished products will be supplied for the needs of various industries. It is planned that the new plant will be one of a kind in Russia and will supply its products both to domestic and foreign markets. The project will create more than 100 new jobs. At the same time, a second facility for the technical textiles production in Moglino will be built by Strimteks, which is another leading Russian technical textiles producer. Similar to Istrem, the project will be implemented in the cooperation with the French investment company NEFI development, while the volume of investments is estimated at US$16 million at the initial stage. Construction works will start by the end of this year. At the initial stage, the plant will produce up to 1.5 million square metres of technical textiles per year and will reach the capacity of 3 million square metres during the next 1,5 years. Future production will be supplied for the needs of the domestic and the EU markets. According to Vincent Aubrey, head of NEFI Development, the range that will be produced at the facility will be fully innovative for Russia. He also added that the new material has many advantages, one of the most important of which is high fire stability. According to an official spokesman of Strimteks, future production of the plant can be used in building and finishing of public facilities and real estate, since it is non-toxic and does not support combustion. The enterprise will work exclusively with natural dyes. The spokesman of the company also added that Strimteks will be able to fill the niche in the Russian market, as well as offer its new products to Western countries. Finally, in addition to two technical textiles facilities, a new plant for the production of continuous basalt fibre will be also established in Moglino by the local JSC Basalt Projects. The volume of investments in the project is estimated at RUB 2.7 billion, while building of the plant is expected to be completed by the beginning of 2019. According to the company, Russia currently produces about 3,000 tonnes of basalt fibre per year and there is a possibility that the launch of the new plant will allow to significantly increase these figures.
Prospects of technical textiles in Russia
In the meantime, implementation of these projects is part of the government plans for the development of technical textiles industry in Russia during the next several years, according to recent statements of the press-service of the Russian President Vladimir Putin. He made these announcements during the St. Petersburg Economic Forum, one of the most important annual business events in Europe, which concluded last week. As part of these plans, a new road map for the development of technical textiles industry in Russia will soon be designed and sent to the Russian government for consideration. This has recently been confirmed by Pavel Konkov, the governor of the Ivanovo region. According to Konkov, the new road map is known as TechNet, and its design will be carried out with the participation of Russia’s leading enterprises in the field of technical textiles and state analysts. “In recent years technical textiles have become a basis of new technical solutions, which are used in many Russian industrial segments. The list of products, which involve the use of technical textiles in includes conductive elements, antennas, prosthetic blood vessels, road surfaces, so the creation of modern textile technologies is relevant for virtually all sectors of the Russian economy,” Pavel Konkov commented. Currently, the Russian technical textiles industry experiences an investment boom, which is reflected by a significant increase of investment projects and the arrival of large-scale investors, both foreign and domestic. One of them is AFK Systema, Russian financial conglomerate, which is owned by the Russian billionaire Vladimir Evtushenkov. According to Mikhail Shamolin, president of AFK Systema, the current potential of the Russian technical textiles market is estimated at more than RUB 100 billion (US$2 billion). “Currently, the annual volume of technical textiles imports in Russia is estimated at about RUB 95 billion (US$2 billion), the majority of which is still imported from China. At present, Russia mainly specialises in importing ready-made fabrics, which are further used for the production of clothing for army, police, and workers. Currently, the domestic special clothing market is very large both in volume and value terms. According to our plans, Russia has all the needed conditions for the production of these fabrics within the country, despite the fact that the country will have to continue imports of chemical yarns, due to the lack of strong domestic chemical production,” said Mikhail Shamolin.
Eugene Gerden
Source: Innovations in Textiles
