The Synthetic & Rayon Textiles Export Promotion Council

MARKET WATCH 19 DEC 2017

NATIONAL

INTERNATIONAL

Apparel Export Promotion Council asks government to reduce GST rates

NEW DELHI: Apparel Export Promotion Council (AEPC) on Monday urged textile minister Smriti Irani and commerce and industry minister Suresh Prabhu to reduce the new rates fixed under the GST regime. Speaking at an event organised by AEPC here on Monday, AEPC chairman Ashok G Rajani said that exporters are not getting incentives under Remission of State Levies (RoSL). Earlier, the industry used to receive RoSL of 11.30 per cent but now it has come down to 6.5 per cent. Exporters are also facing a crisis in shipping their products abroad, especially in European Union. The EU levies a 12 per cent duty on Indian cotton while Bangladeshi and Vietnamese cotton are exempt from any duties.Echoing the concern faced by the sector, Amitabh Kant, CEO of Niti Aayog, said, “It’s high time to reduce import duties and custom on raw material.” New rates under GST are 5 per cent, 12 per cent and 18 per cent on textile-related products, which earlier attracted no duties. Kant also urged the ministers to come up with new GST rates for fibres to support the sector as it is one of the largest providers of employment.The ministers, however, said there are legacy issues with the textile ministry.“We are working on solving all the issues prevailing in the industry,” said Irani, adding that the ministry would work on every plight of the sector.Prabhu said the government was working on finding new markets for the domestically produced cotton.

Source: The New Indian Express

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India can grow at 8 per cent for next 20 years: UN expert

GST, Goods and service tax, GST India, Arun Jaitley, PM Modi, Narendra Modi, GST rates, GST filing, yashwant sinha, demonetisation, demonetisation effect, Indian economy, bjp, GSTR, make in india, gst compliance, ease of business, gst, business news, latest news, indian express The UN officer praised the Indian government’s emphasis on public investment and infrastructure projects. (Representational) India can achieve an eight per cent growth rate for the next two decades by promoting investment and improving the living conditions of its people, a senior UN economic official has said. Describing India’s economic condition as largely positive and “favourable to growth”, Sebastian Vergara, an Economic Affairs Officer at the United Nations, said the country needs to unleash the next set of reforms to achieve its potential. “It needs to think as to how to maintain and consolidate its growth for a very long period of time. India in our assessment has the potential to grow at eight per cent, not for a few years, but 20 years,” Vergara told PTI. “For that, India needs to come out with the next series of reforms, for example, promote investment and improve the living condition of its population,” he said. Despite the positive economic condition, Vergara said, India’s economic growth could be a little lower in comparison to some of the earlier forecasts.The UN, in its latest report, projected India’s growth rate to be 7.2 per cent in 2018 and 7.4 per cent in 2019. The annual ‘World Economic Situation Prospects’ report, released last week, said the GDP growth for India in 2017 is projected to be 6.7 per cent. Several factors have led to India’s “positive” economic conditions, Vergara said. “One of this is the growth of private consumption and sound macroeconomic policies. The monetary policy, which has been able to control inflation, also has a role to play,” he said. “Also fiscal policy in India, in our assessment has been prudent. At the same time, it has provided another quite support for the economic activity,” Vergara said. The UN officer praised the Indian government’s emphasis on public investment and infrastructure projects. “This has been very important to promote growth in the short term and to encourage economic activity in the medium term,” he said. The series of regulatory reforms that has happened in the previous year and the current one has also helped India’s cause, said the UN official who keeps a tab on India’s economic health and development. “Demonetisation clearly had an impact in early 2017. This resulted in a significant liquidity crunch, but was temporary,” he said. “As the year went on, measures were implemented, financial relief were introduced, steps like credit support for small enterprise to help contain the shock that this demonetisation policy created,” he said, adding that demonetisation has benefited the banking sector and increased the tax base — which will help the fiscal accounts. So, in the medium term, we think that this policy will help the Indian economy,” Vergara said. According to the top UN economic official, 2017 has been a year of major economic reforms in India, particularly in the banking sector. “There has been deregulation and further liberalisation of the policies regarding foreign direct investment,” he said. Vergara said these reforms are helping the Indian economy to improve its efficiency and increase the medium-term prospects of its economy. “In that sense these policy reforms are positive. Of course, we will see how these policies are implemented,” he said.

Source: Financial Express

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ASEAN free trade pact: House panel calls for better access to Indian goods

The Department of Commerce should furnish a note on the assessment of the working of India-ASEAN trade in goods agreement and seek better market access for goods in order to have more balanced trade, a Parliamentary Standing Committee on Commerce on ‘Trade with ASEAN countries’ has recommended.  The report, presented to the Rajya Sabha on Monday, by the Parliamentary Committee headed by Naresh Gujral, points out that a number of items including farm products, textiles, leather and steel have been adversely affected due to the provisions of the agreement. The India-ASEAN Trade in Goods Agreement came into force on January 1, 2010. The report pointed out that better market access in terms of higher export has not materialised for India and this was a matter of concern. “The Committee is of the view that if this approach or argument is subscribed, then there was no need for the trade agreement with ASEAN…..various trade instruments/agreements must aim towards better market access,” it said. The Commerce Department may look into the cause of huge trade deficit with Indonesia and review the existing trade policy framework in respect of the country, the report said. Trade with CLMV countries (Cambodia, Lao PDR, Myanmar and Vietnam) is also not at desired level, it added. “The Committee desires that the Department may engage the ASEAN member States for giving better market access to Indian goods where we have an edge over them like leather goods and pharmaceuticals, so that trade balance improves,” it said.

Concern over farm exports

On the decline in exports of agriculture commodities to the ASEAN, the Committee said that it was a matter of concern and should be dealt with strictly. “The Committee desires that value addition of primary agricultural products may be promoted and commodities enjoying comparative advantage in ASEAN countries may be identified and market access at zero duty may be sought for our farmers and agro-processors,” the report stated. Stating that it finds disconcerting that the steel industry has been put to a disadvantage by the India ASEAN pact, report proposed that reciprocity in tariff reduction/elimination by ASEAN countries on Indian steel products should be ensured on account of broad and sweeping market access given by India. The Committee also recommended that the Commerce Department should be vigilant over the safeguard measures imposed by the ASEAN countries on textile exports since it directly affected the country’s exports.

Source: Financial Express

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Rupee retains its strength

The rupee, as expected, continued to strengthen against the US dollar in the past week. The currency stayed strong all through the week and rose to a high of 64.01 on Friday on the back of the exit poll results that indicated a strong victory for the Bharatiya Janata Party (BJP). Although the rupee tumbled sharply to an intra-day low of 64.72 in opening trades on Monday after the initial rounds of the Gujarat Assembly election results, the currency immediately managed to recoup the losses. It closed at 64.23 on Monday, up 0.21 per cent for the week. The outcome of the US Federal Reserve meeting in the past week also supported the rupee. The Fed, as widely expected, increased interest rates by 25 basis points, which didn’t surprise the markets. The central bank had revised upwards the US growth outlook, but it did not make any changes to the future rate hikes plan. The Fed expects the US to grow at 2.5 per cent this year, up from 2.4 per cent projected earlier. For 2018, the growth forecast has been raised to 2.5 per cent from the earlier forecast of 2.1 per cent. On the interest rate front, the Fed left the median projection of the policy rate unchanged at 2.1 per cent for 2018 leaving room for three rate hikes next year. The US dollar witnessed a sell-off after the Fed meeting. The dollar index fell sharply from 94.20 to a low of 93.28 on Thursday. The bounce-back from this low failed to breach 94 thereafter and the index has come off again after hovering at 94 on Friday. It is currently trading at 93.73. The immediate outlook is not clear. The dollar index has to decisively break above 94.20 in order to gain fresh momentum. Such a break can take the index higher to 95. Further break above 95 will then pave the way for the next target of 96. On the other hand, as long as the index trades below 94, it can fall to test 93.3 once again. A strong break below 93.3 will increase the likelihood of the index falling to 92.85 or even lower. The rupee is hovering below the key psychological resistance level of 64. Inability to break above this hurdle can see the rupee losing some steam in the near term, and weaken to 64.45 or even to 64.60 in the coming days. In such a scenario, a range-bound move in the band between 64 and 64.5 can be seen in the short term. The price action on Monday suggests that the rupee is more likely to sustain below 64 in the near term. That said, if the rupee manages to decisively breach the 64-mark, then it can extend its current upmove to 63.83. A strong break above 63.83 will increase the likelihood of the currency rallying to 63.60 thereafter. The 63.83 and 63.60 levels are crucial medium-term resistances. Whether the rupee manages to break these hurdles or not will decide the next move over the medium term.

Source: Financial Express

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Ryots told to destroy cotton crop

With the pink bollworm causing serious loss to the cotton farmers during this khariff season and possibility of the pest affecting crop in the next season, the Agriculture Department has asked the farmers to destroy their cotton crop by January and take up alternative crops.

Intermittent rain

Following intermittent rainfall, the farmers had sustained serious loss to the cotton crop with low yield. Simultaneously, the pink bollworm pest had spelt doom for the cotton farmers with steep decline of the yield. Normally, the cotton farmers would have reaped anywhere from 8 to 10 quintals of cotton per acre. But, due to the pink bollworm pest, the yield had come down to 4 to 5 quintals per acre causing huge loss to the farming community. The rains had damaged the grown up cotton produce by decolouring and the pink bollworm had damaged the cotton produce from the flowering stage itself. Talking to The Hindu on Monday, District Agriculture Officer V. Sreedhar said the pink bollworm pest had come from Maharashtra to the district. The pest had attacked the cotton crop at the flowering stage and also after harvesting the crop in the ginning mills. “There is every possibility of spread of the pest and we have been educating the farmers not to continue the cotton crop beyond January in the fields to break its lifecycle”, he said.

Educating ryots

The officials from the department have been visiting the villages and educating the farmers to destroy the cotton crop after completing the plucking of cotton and later plough the crop to take up alternative crops such as maize, gingelly etc. He said that the farmers, who had completed three pluckings of the crop, had already started setting fire to the crop and beginning fresh ploughing of the fields to take up alternative crops. He hoped that the campaign would yield results.

Source:  The Hindu

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Truetzschler-A.T.E 40 years of successful partnership in India

Trust is a word synonymous with Truetzschler for over 125 years, and this is the main reason a small repair shop in Germany has grown into a company of global stature. The reasons Truetzschler is so trusted are simple. Its products have tremendous longevity and have performed well for a period much longer than normally expected. Workmanship has always been emphasised as the basis for the solid engineering and quality of Truetzschler machines. The Germans are known to give rock solid products, and Truetzschler is a standard bearer in this regard. Right from the first card DK of 1967 running at 10 kg/hour to the present TC 10 and TC 15 cards running at 200 kg/hour, it has been a continuous journey surpassing customer expectations with trend-setting technology products and unmatched services. At Truetzschler, since inception, research and development matters the most, and short-term cost has been a secondary aspect. This philosophy has helped in developing long-lasting world-class products for the textile industry. As a result, Truetzschler machines are performing to the full satisfaction of the customers even 30 years after purchase! Arvind Mills in Ahmedabad is still running the first generation DK 740 cards which were delivered in 1993. Appropriate maintenance and reclothing at proper intervals has helped the cards still run at their optimum speeds. A visit to the carding department shows that the cards are running with 460 cylinder rpm without causing vibrations. The mill is happy with this performance and it is in no hurry to replace the cards. This itself is testimony to the robustness of the Truetzschler technology bought by the mill almost 25 years ago. Cheran Synthetic Mills of the Pallavaa Group at Erode has a first generation automatic bale opener BDT 013 manufactured in 1994. The bale opener is running as well as the new version automatic bale openers in the group’s nearby units. A closer look at the rail tracks reveals that there are hardly any deterioration marks on them. The maintenance team of the mill is happy with the performance. Mr. Durai Palanisamy, Executive Director of the Pallava Group, is confident that the Blendomat can still run for at least 10 more years! Raviraj Industries in Yavatmal, Maharashtra, has the unique honour of having a DK 715 running at 30 kg/hour with a hank of 0.095 Ne. The card processes 44 mm 100% polyester fibres of 1.4 denier. Mr. Mahesh Agarwal, Director, says that the card, imported as a re-sale, is giving the best price-performance ratio to us”. TT Ltd. is a 15,000-spindle unit in Uttar Pradesh, having 8 DK 740 cards delivered in 1992-93. The cards are still running at production rates of 45 kg/hour with a cylinder rpm of 480. The mill produces 8.5 tons of quality yarn every day. It also has 5 DK 780 cards delivered in 1995, running at similar production rates. . Mr B C Jain, Vice-President, proudly says: “We are glad we took the decision to buy Truetzschler machines“. The examples given above show that the technology sold by Truetzschler almost 25 years ago is still giving customers the satisfaction that they made the right decision of purchasing Truetzschler machinery. The DK 740 cards at TT were amongst the first lot made by Truetzschler India Pvt. Ltd., which was formerly known as Trumac Engineering Company Pvt. Ltd. In India, the manufacturing partnership of Truetzschler with A.T.E. is celebrating 40 years this year. The ‘Customer First’ value of both the companies has always been the driving force for creating trust among Indian customers. It is this trust shown by valuable customers that has inspired Truetzschler and A.T.E. to continue providing the best technology with innovative features that no others have. With Truetzschler, it is truly apt to say that Old is Gold!

Source: The Textile magazine

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Himatsingka – Emerging global leader in home textiles

The textile industry never ceases to amaze. Just when you think you have seen the best, you come across something that leaves you awestruck. Take Himatsingka Group’s campus at Hassan for example. It is world class in the true sense of the word. Everything from the sweeping landscape, the ambience, the culture, the sheer scale and the state-of-the-art technology used in the manufacturing process makes the campus a symbol of pride for the Indian textile manufacturing industry. Mr. Shrikant Himatsingka, Managing Director & Group CEO. The Rs. 3,000 crore Himatsingka Group is a vertically integrated home textile major with a global footprint. It focuses on the manufacture, retail and distribution of home textile products. The Group operates amongst the largest capacities in the world for Bedding products, Drapery & Upholstery fabrics and fine count cotton yarn and will shortly add to its portfolio the largest capacities for Terry Towels. With over 6,000 people, the Group continues to expand its reach and build capacities in the home textile space. The Himatsingka Group has carved a niche for itself in home textiles, not by treading old beaten paths but by taking on risks and challenges that have elevated it to be amongst the most advanced textile companies the world. It has set new standards in creating integrated models, embracing technology, building plants of global scale and ushering in next-generation shop floor culture. It is an exciting phase of growth for the Group. Under the keen acumen and foresight of its Managing Director & Group CEO, Mr. Shrikant Himatsingka, the company has cemented its position across global markets. It has been in an expansion mode and the construction of what is going to be the world’s largest Spinning unit under one roof is on in full swing and is expected to be completed in another few months. Work on the proposed terry towel unit is expected to start shortly. The company has just completed its brownfield expansion of its Sheeting unit. The Group has also taken commendable steps to strengthen its brand portfolio. While Himatsingka has iconic fashion brands like Calvin Klein Home and Kate Spade, it also has famous luxury brands like Bellora and Atmosphere as part of its brand portfolio. In addition, the Group has emerged as a global leader in Track & Trace capabilities with regard to the cotton value chain. With exclusive global rights to the patented DNA tagging technology, Himatsingka has an edge in bringing ‘Track & Trace’ solutions to its clients. The company’s exclusive cotton brands, namely, Pimacott, HomeGrown Cotton and Organicott, will be focused on catering to the client requirements, where products will be equipped with the DNA-based tagging technology. Himatsingka is positioning its manufacturing assets to be among the top three in their respective verticals. This ensures the company’s ability to be a reliable global force in the home textile space. The growth story of the Group is not just based on technology, brands and the scale of the projects alone. It is also a story about how the Group has, through its path-breaking HR initiatives, been able to bring a positive change to communities around the Group’s plants. It’s a story that has been driven by adherence to certain key values and culture systems. In an exclusive interview, Mr. Shrikant Himatsingka, Managing Director & Group CEO, spoke at length on the Group’s initial days, the focus on advanced manufacturing capabilities, building sustainable Intellectual Property platforms, future plans and his take on certain key issues affecting the textile industry.

We began by asking Mr Himatsingka about the initial days of the Group.

“Himatsingka Seide was founded in 1986 by my father Mr. Dinesh Himatsingka, Executive Chairman of the Group. At that time, he witnessed the advanced capabilities that European manufacturers brought to the table and believed that India could be equally innovative and capable of producing such products. This belief led to the formation of ‘Himatsingka Seide’, a pioneering venture that saw the setting up of the first vertically integrated plant of its kind that manufactured luxury Drapery & Upholstery fabrics for international markets. The plant began commercial production in 1988. ‘Seide’ is the German word for silk, and initially most of our products were manufactured using silk. In fact, a lot of people still associate us with silk because of our earlier history,” Mr. Himatsingka quipped on the Group’s first plant established at Doddaballapur, near Bangalore.  “After the plant commenced production in 1988, it was obviously a tough journey. India was largely known for its commoditized products, and it took the company around 3-4 years of trouble-shooting, trials and research to discover the nuances of the know-how required for producing uber luxury Upholstery and Drapery fabrics. After this initial period, the company began to demonstrate strong growth for its time and focused on serving the American and European markets. The company crossed the Rs 100 crore mark in the year 1999-2000,” he added. Continuing further he said: “While the revenues were over Rs. 100 crores, the profit after tax was Rs.40 crores in 1999-2000. The margins were the highest in the textile industry. Product design was the key to this value addition that made these numbers possible. We had strong product design and innovation capabilities that led to our products being successfully placed with the most discerning luxury brands across the world. The shop floor was extremely complex for its time, capable of handling over 20,000 SKUs across small batches of production. In fact, Himatsingka was the first company to set up a luxury Drapery & Upholstery plant of its time. It was the first plant in the country to be heavily jacquard oriented. It was the first to set up CAD/CAM manufacturing systems for design way back in the early 1990s. Himatsingka is also credited with the distinction of being the first to bring in velvet know-how and the first to use multi-fiber platform for value-added products in India.” Describing the first decade of the company, Mr. Himatsingka stated: “My father’s pioneering efforts were inspirational to many in the textile industry. He created a ‘Rolls Royce’ in the luxury textile space, which gave the company a strong platform and foundation on which we could grow.”

Embarking on new initiatives

It was around this time in 2001 that Mr. Shrikant Himatsingka joined the family business after completing his graduation from the Stern School of Business at New York University. For the first couple of years he got trained on the shop floor to get a ground-level understanding of the business. Interestingly, the first project that he launched was ‘Atmosphere’, the company’s luxury retail brand. Recalling the reason behind entering the retail domain, Mr. Himatsingka observed: “Our strategy was quite simple. We didn’t have a market presence in India and we wanted to sell here. So the challenge was, who do you sell to? When you sold it to multi-brand outlets, there was a chance of the image of the products and brands taking a beating. So we set up ‘Atmosphere’, a luxury Drapery & Upholstery retail brand as a forward integration initiative in order to create our own consumer experience.” According to Mr. Himatsingka, the Group’s foray into retail was in a way ahead of its times and came with its own set of challenges. “It’s not easy to scale at the luxury end of the market. So, while we were growing that business, by 2005 we were looking for businesses that were more scalable. We wanted to be a global player in the home textile space and therefore needed to do something substantial to make a mark on the global map. It was at that time that we conceived the Hassan plant and made a foray into the Bedding space, both on the manufacturing and distribution fronts.”

First phase of growth

Construction of the Hassan plant commenced in 2005 and was commissioned for commercial production in 2007. Looking back at that period, Mr. Himatsingka said: “Obviously, it was an ambitious and large project for us. By that time, we had also realized the merits of forward integration and, therefore, simultaneously we started looking for acquisitions to tap into markets that we wanted to address.”

Throwing light on how the company went about the acquisition process, Mr. Himatsingka remarked: “The Group was looking for opportunities that would give it a strong platform in key markets and had credible intellectual property portfolios coupled with strong client relationships on the private label front. We made three back-to-back acquisitions in 2007, which gave us a foothold in North America and Europe.”

The tough phase

During 2007 the company had invested over Rs.1,000 crores in its new facilities and acquisitions. While the initiatives would enable the company to leapfrog into an entity seven times its size at that time, challenges were just around the corner. “From 2007 to 2012, I faced some of the toughest times at work. Not only did we have to face challenges of stabilizing the new facilities and integrating our new acquisitions, we were also faced with serious challenges on the external front. We had the global economic slowdown in 2008. We had extreme foreign exchange volatility during this period, and in 2010-11 we also faced the problem of hyperinflation in raw material prices. All this put together took a toll on us. Everything that could go wrong went wrong. Our business model was put to the test. Our management and our operational & strategic capabilities were put to test. We needed a good four years to find our feet.” Mr. Himatsingka was quick to point out that this tough phase was also the time that gave him deep insights and learning that would help him in the future. “It was an extremely rich phase in terms of experience. There were different breeds of difficulties to face. I learnt a lot about how to handle scale, adversity and building global capabilities. If I hadn’t been slapped by circumstances then, the growth trajectory of the Group would not have been as buoyant perhaps,” he added. Mr. Himatsingka remained confident that the challenges would be overcome and brighter days were ahead. “Every stakeholder (rightly so) thought that our future was bleak. However, we remained resilient and focused. We were confident of our model. With high quality brands, world-class infrastructure, a committed and competent team and a strong will, we had the ingredients to face the challenges.” Pretty soon the Group’s fortunes took a turn for the better. There has been no looking back ever since. Himatsingka crossed the Rs.1000-crore level in revenue in 2009-10 and the Rs. 2000-crore mark in 2014-15. “The Group has continued to consolidate its position since, and has now embarked on its next phase of expansion.” said Mr. Himatsingka.

Track and trace capabilities

Himatsingka is the world’s first company to bring to market the DNA-based tagging technology to ensure complete ‘Track and Trace’ capability across the cotton value chain. “This DNA technology, developed by Applied DNA Sciences (ADNAS), is exclusive to the Himatsingka Group,” said Mr. Himatsingka. “Our exclusive brands – Pimacott, Organicott and HomeGrown Cotton – are now equipped with the DNA-tagged technology. Our aim is to play a responsible role in providing the highest standards of supply chain security and integrity for our discerning clientele. With this capability, we have emerged to be global leaders in Track & Trace capabilities for the cotton value chain.”

US & European markets

The global home textile market was estimated at approximately $96 billion in 2016, and it is expected to reach $131.5 billion by 2020, growing at CAGR of 3.5%. The US textiles and apparel market was estimated to be $175 billion in 2016. The US imported $2.6 billion worth of cotton-based Bedding products primarily from India, China and Pakistan, in 2016. This contributed to 87% of the total cotton-based Bedding products imports. The US has increased its sourcing of cotton sheets, pillow cases, bed spreads and quilts from India over the years making it the largest supplier of cotton Bedding products to the US. For Himatsingka, the US continued to be the largest market with a revenue contribution of more than 80%. The company’s consolidated revenues stood at Rs 2,138 crores for the financial year 2016-17 and revenues from brands crossed the Rs 1,200 mark during the same period. While the Group has always had a strong focus on the US market, what about its presence in Europe? Replying to this question, Mr. Himatsingka pointed out that they already had their European presence through the Bellora subsidiary. Adding further he said: “We have now embarked on a renewed goal for Europe. Our recently incorporated Himatsingka Europe, a 100% subsidiary will drive focus on growing our presence in the EU and the UK. We have a new CEO for Europe who is now leading our initiatives to expand across continental Europe.”

India on the radar

Asked about the growing Indian domestic market, after Atmosphere – the company seems to have not come out with any India-specific initiatives – Mr. Himatsingka was frank enough to agree that while the company could have done a lot in India it had not. Elaborating further on the subject he said: “Does India hold promise for large-textile companies? Yes. Is it a difficult market to crack? Again, yes. I agree we are probably behind competition when it comes to the Indian market. We have not taken the right strides. While we have taken some initiatives in the Drapery & Upholstery segments, we haven’t made meaningful progress on the Bedding and bathing front.” Mr. Himatsingka was however non-committal when it came to setting any particular time frame for implementation of any specific plans for the Indian market. “The Indian market remains important and our initiatives and strategies for the market are work in progress,” he pointed out.

New manufacturing facilities

The global manufacturing landscape has been inundated with technology platforms and opportunities that will pave the way for next-generation shopfloors and usher in a new manufacturing culture. The textile industry is no exception. Himatsingka has been exploring technology that may have transformational impact on productivity and efficiency. The company is leveraging automation and virtual platforms that radically alter manufacturing. “We are in the midst of expanding capacities and committed to investing to the tune of Rs. 1500 crores in our Sheeting, Spinning and Terry Towel facilities,” Mr. Himatsingka disclosed. These themes are especially important, given the emphasis on making India a global manufacturing hub. Himatsingka believes that a combination of technology and scale in the textile sector will be essential to scale India’s share of the global textile trade. Himatsingka has invested in the best global manufacturing technology, from Spinning to weaving, dyeing, processing, finishing and, more importantly, the ZLD ETP plant which ensures zero discharge.

Terry towels business

As mentioned earlier, the company is planning to set up a manufacturing facility exclusively for terry towels in Hassan, Karnataka. The new facility construction of which will start next year, will have an installed capacity of 25,000 – 30,000 tonnes per annum (TPA). When queried as to how does terry fit in with the company’s existing business, Mr. Himatsingka replied stating that the foray into terry is very synergetic as the company can offer complete solutions for Bedding & bath products at the global level.

World’s largest Spinning unit

Ever since the day it was announced, the Himatsingka Group’s new Spinning unit with an installed capacity of 2,11,584 spindles has been among the most anticipated projects in the Indian textile industry. “We are setting up the world’s largest cotton Spinning plant under one roof,” said Mr Himatsingka. The state -of-the-art facility is expected to be commissioned in Q3 FY 18. The fact that India has got excess Spinning capacity did not make any difference to the Group’s plan to set up this pathbreaking plant. Pointing out the reason why Mr. Himatsingka highlighted the fact that the unit was more for captive consumption. “The need for a Spinning plant was driven by backward integration. We are insulated from the Indian demand and supply scenario because we are setting up the plant focused on backward integration. As you know we are large consumers of Ultra-Fine Count Yarn, capacities of which are very restricted in India. So it makes business sense for us to have our own capacities.” Would Himatsingka be looking at selling yarn manufactured from the plant at some point in time? Answering this query Mr. Himatsingka said: “If at all we decide to sell fine count yarn to third parties, we won’t be doing it not because of compulsion but because we see an opportunity to sell specialty ultra-fine cotton yarn to certain players. As I mentioned earlier we are looking predominantly from a backward integration perspective.” Explaining how the Spinning facility is different from others, Mr. Himatsingka remarked: “It is a highly automated plant and we are producing Ultra-Fine Counts. The latest generation of technology does make a difference. Will the return on capital in Spinning be as attractive as in Sheeting? The answer is No. However, the Spinning venture will offer other benefits which are important for us. For example, it will give us capabilities to absorb inflationary shocks. It will also de-risk us on the sourcing front with reasonable financial returns, in line with our hurdle rates.”

Strong focus on sustainability

Environmental pollution is another major issue facing the textile industry. Giving his take on the issue, Mr. Himatsingka said: “We have always been particular about using environment-friendly technologies and practices. We believe in the concept of ‘walk the talk’. It is important to be green. We are conscious of our impact on the environment. That’s why we have implemented technologies such as Zero Liquid Discharge (ZLD), and would continue to be a key focus area.” Giving his take on the textile industry having a major polluter tag, Mr. Himatsingka said: “The textile industry no doubt generates effluent; it is capable of polluting if not attended to. This is happening because there are a lot of small & medium-sized players spread across India who have poor adherence records on compliances with regard to environment friendly practices. Such units probably do not have a high priority to invest in these areas. Large organizations, however, do not have that option. I feel that there should be no discretion on this issue. You cannot be polluting – period.”

Next stop – $1.1 billion

Mr. Shrikant Himatsingka, Managing Director & Group CEO believes that the Group is headed on the right track. It is now the world’s third largest integrated Sheeting producer. It has just set up the world’s largest Spinning plant under one roof. Himatsingka has embarked on the journey to set up the fourth largest integrated Terry Towel plant. It also operates the world’s 3rd largest plant for manufacturing luxury Drapery & Upholstery products. While the Group has developed scale on the manufacturing front, it also has the largest brand portfolios in the home textile space. “We continue to be focused on cementing a vertically integrated model characterized by seamless integration from Fibre to Shelf,” emphasized Mr. Himatsingka. On a parting note he said: “Looking at the initiatives being undertaken by the Group, we are confident of reaching our next target of $1 billion in revenues over the next few years.”

Source:  The Textile magazine

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Global Textile Raw Material Price 2017-12-18

Item

Price

Unit

Fluctuation

Date

PSF

1327.39

USD/Ton

-0.28%

12/18/2017

VSF

2148.03

USD/Ton

0%

12/18/2017

ASF

2435.45

USD/Ton

0%

12/18/2017

Polyester POY

1293.36

USD/Ton

-0.58%

12/18/2017

Nylon FDY

3358.19

USD/Ton

-0.89%

12/18/2017

40D Spandex

5748.26

USD/Ton

0%

12/18/2017

Polyester DTY

5718.01

USD/Ton

0%

12/18/2017

Nylon POY

1535.39

USD/Ton

-0.73%

12/18/2017

Acrylic Top 3D

3169.11

USD/Ton

0%

12/18/2017

Polyester FDY

2571.59

USD/Ton

0%

12/18/2017

Nylon DTY

1595.90

USD/Ton

-0.47%

12/18/2017

Viscose Long Filament

3569.97

USD/Ton

-0.42%

12/18/2017

30S Spun Rayon Yarn

2828.75

USD/Ton

0%

12/18/2017

32S Polyester Yarn

2023.99

USD/Ton

-0.15%

12/18/2017

45S T/C Yarn

2874.13

USD/Ton

-0.52%

12/18/2017

40S Rayon Yarn

2980.02

USD/Ton

0%

12/18/2017

T/R Yarn 65/35 32S

2495.96

USD/Ton

0%

12/18/2017

45S Polyester Yarn

2178.29

USD/Ton

0%

12/18/2017

T/C Yarn 65/35 32S

2420.32

USD/Ton

0%

12/18/2017

10S Denim Fabric

1.41

USD/Meter

0%

12/18/2017

32S Twill Fabric

0.87

USD/Meter

0%

12/18/2017

40S Combed Poplin

1.21

USD/Meter

0%

12/18/2017

30S Rayon Fabric

0.67

USD/Meter

0%

12/18/2017

45S T/C Fabric

0.71

USD/Meter

0%

12/18/2017

Source: Global Textiles

 

Note: The above prices are Chinese Price (1 CNY = 0.15127 USD dtd. 18/12/2017). The prices given above are as quoted from Global Textiles.com.  SRTEPC is not responsible for the correctness of the same.

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Bangladesh : Govt to revive 13 textiles mills under PPP

'Our textiles industry will stand on its feet again now that we have taken the initiative to revive the mills under PPP' The government has decided to restart 13 textiles mills that were shutdown 25 years ago due to huge losses and run them under a public-private partnership (PP) initiative, according to an official of the Ministry of Textiles and Jute. The official said this would be the textile sector’s largest project, with Tk15,200 crore set to be allocated to purchase new machineries, to replace the existing ones, to run these mills. The project will also ensure proper use of 380.47 acres of land allocated for the sector, said the official, adding that the land currently has a value of Tk1,592 crore. The proposal of Bangladesh Textile Mills Corporation (BTMC), which works under the ministry, to restart the 13 mills would be placed before the Cabinet Committee on Economic Affairs on Wednesday. State Minister for Textiles and Jute Mirza Azam told the Dhaka Tribune: “Our textiles industry will stand on its feet again now that we have taken the initiative to revive the mills under PPP.” He said the ministry has already completed the process to restart three of the mills. The 13 mills up for overhaul are – RR Textile Mill, Amin Jute and Textile Mills and The Asiatic Cotton Mill in Chittagong; Rangamati Textile Mill at Ghagra, Rangamati; Magura Textile Mill in Magura; Bengal Textile Mill at Noapara, Jessore; Rajshahi Textile Mill at Sapura, Rajshahi; Sundarban Textile Mill in Satkhira; Dinajpur Textile Mill and Jalil Textile Mill in Dinajpur; Darwani Textile Mill in Nipharmari; Dost Textile Mill at Ranirhat, Feni; and Afsar Cotton Mill at Savar, Dhaka. According to the proposal, the PPP’s duration will be 30 years, but could be renewed. Bangladesh Jute Mills Corporation will be the major partner of the PPP while rest of the shares will go to private parties. It says the private parties will implement the project, maintain the mills and market the textile products. Of the 86 state-owned textile mills, BTMC handed over 60 mills to the Privatisation Commission between 1977 and 2013, and runs 24 factories across the country at present. A little over one year ago, the government had taken another initiative backed by Chinese funding to modernise 24 state-owned jute mills, with the expectation of yielding an annual net profit of around Tk975.8 crore and create 24,000 new jobs. The jute mills have been incurring losses for several years now, and in FY2015-16 alone their losses amounted to Tk588 crore.

Source:  Dhaka Tribune

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Pakistan : Apparel sector wants tax-free yarn import

LAHORE - As the government is all set to withdraw sales tax and customs duty on import of cotton on the demand of spinning industry, setting aside the interest of growers and ginners, the Pakistan Readymade Garments Manufacturers & Exporters Association has appealed the authorities to also relax duties on yarn import to encourage value addition, reduce cost of doing business and bridge the gap between production and consumption. PRGMEA Chief Coordinator, Ijaz Khokhar asked the Textile Division to submit the summary to the ECC for duty relaxation on yarn import in line with the benefits being provided to the spinners. “With a view to bridge the soaring gap of trade deficit, the government will have to provide level-playing field to the whole textile chain instead of supporting only yarn manufacturers, which have just around 350 units, against value added sector of 10,000 units across the country. With regard to employment generation, one spinning unit generates just 5% employment while garment unit creates 95% employment,” he added. Ijaz Khokhar said that despite the fact that around 1.86 million bales of cotton are lying unsold in the country but the government is going to facilitate the spinning industry on the plea that domestic cotton is of short staple, it will have to remove restrictions on yarn import too under the same plea. He said since the apparel sector already has a very limited production line owing to lack of latest fabric varieties at local level the harsh duties are resulting into significant decline in apparel export. He said that apparel industry is already suffering with the low productivity due to shortage of cotton yarn, high energy cost, and discriminating import duties on the industry's raw material. “The high quality cotton yarn has to be imported for production for high value added finished products.” He observed that the value-added textile sector is not against spinning sector but it wants that whole textile chain be safeguarded because the sector has a tough competition in garments with regional competitors like Bangladesh, China and India. He said that PRGMEA, being one of the major value-added stakeholders, is playing pivotal role in earning foreign exchange as well.

Source: The Nation

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Cambodia : Garment makers demand ‘amicable’ end to political row

Representatives of the garment industry said yesterday that the escalating political row between Cambodia and certain Western countries could have serious consequences for the sector and asked both parties to work together to find a solution to the conflict that will allow business activity to continue unaffected. Tension between Cambodia and certain Western countries – primarily the European Union and the US – has been building since the CNRP – the country’s main opposition party – was dissolved last month. Last Thursday, the European Parliament (EP) officially asked the EU to restrict the issuance of visas to Cambodian officials and to freeze their assets in Europe. The European parliamentary body also demanded a review of the human rights clauses of the Everything But Arms (EBA) agreement to see if a temporary suspension of the agreement is possible. On Sunday, Prime Minister Hun Sen retaliated by threatening to prevent foreign diplomats from entering the kingdom. Kaing Monika, the deputy secretary-general of the Garment Manufacturers Association in Cambodia (GMAC), told Khmer Times that he is concerned by these hostile actions, and said both sides need to work together to de-escalate this situation as the well-being of the Cambodian people is the main priority for all involved. He argued that the government and its counterparts in the West need to proceed in a sensible and diplomatic way that doesn’t affect the economic growth of the country, adding that it is this growth that has lifted thousands of Cambodians out of poverty. “No doubt any political tension would definitely affect business, investment and trade,” Mr Monika said. “I hope that there will soon be an amicable resolution, with the EU and the US respecting Cambodian sovereignty. “Democracy only exists with the rule of law,” he added. Mr Monika said that a rescission of the EBA treaty with the EU will have little to no impact on the government, while severely hurting the livelihoods of workers in the garment industry. “From the perspective of a less developed country like Cambodia, economic growth and development justify political decisions,” he said. “The government’s economic performance needs to be acknowledged to allow peace and stability in the country that promotes economic growth and development as well as democratic reforms.” Som Aun, the president of the National Union Alliance Chamber of Cambodia (NACC), met with the EU’s ambassador to Cambodia, George Edgar, on Wednesday, a day before the EP announced its resolution on the issue of sanctions to Cambodia. “We told Mr Edgar that the garment and footwear sector provides a livelihood for thousands of workers across the nation and that we are working really hard to improve working conditions in the sector,” he told Khmer Times. “We also told him the EU should not heed calls demanding that the EU stops ordering products from Cambodia.” The US and the EU are the two major export markets for Cambodian garments and footwear products, accounting for nearly 65 percent of total exports in the sector in 2016. However, as Cambodia diversifies its export markets, the share of Cambodian garment exports that go to the US and the EU is declining. Exports to markets outside the EU and the US amounted to 35 percent in 2016, up from 28 percent in 2015. Ten years ago, it was only 11 percent. The Japanese and the Canadian markets account for the bulk of export growth to non-traditional markets. Exports to China have also increased significantly. In 2010, China accounted for virtually zero of total exports in the sector, but it 2016 this number was up to 2.3 percent. Total exports of garments and footwear products rose by 7.2 percent in 2016, reaching $7.3 billion, up from $6.8 billion in 2015.

Source:  Khmer Times

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China's cotton output reverses declining trend

BEIJING, Dec. 18 (Xinhua) -- China's cotton output ended a four-year declining streak, increasing 2.7 percent in 2017, as yield per hectare saw strong growth, official data showed Monday. Cotton output increased 142,000 tonnes to around 5.49 million tonnes, according to the National Bureau of Statistics (NBS). The area of cotton fields in China fell 4.3 percent year on year to 3.23 million hectares, but yield per hectare rose 7.3 percent, the NBS said. Northwest China's Xinjiang Uygur Autonomous Region, the country's largest cotton growing area, accounted for 74.4 percent of the national total output, 7.1 percentage points higher than last year. China's cotton output peaked in 2012 at 6.84 million tonnes, more than 2.2 times that of 1978. It started to drop from 2013 due to relatively low profitability. Though other cotton growing areas continued to see shrinking output this year, Xinjiang posted increases in both area and yield, due to the promotion of scale production, according to Zhao Jianhua, an NBS statistician.

Source: Xinhua

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Zim introduces cotton hybrid seeds

Business Reporter: Zimbabwe has introduced cotton hybrid seeds with potential to improve yields by as much as 45 percent when compared with the traditional varieties, an official has said. Hybrid seeds require less water and have a higher yield potential compared to non-hybrid varieties. Studies have shown that the hybrid seeds, which are generally less water intensive, have a yield potential of between 25 percent and 45 percent higher than non-hybrid seeds. Quton, the country’s largest cotton seed company, said some hybrid cotton seeds were released to farmers in November for trials in preparation for commercial production. In the quest to improve quality and product performance, Quton developed hybrid cotton seeds that achieve higher yields and offer superior fibre properties. The company has already introduced the hybrid seeds in Zambia and will begin commercial distribution in Malawi next year. The trials are ongoing in Ghana and Nigeria. “We have released hybrid cotton seeds for trials so that farmers can compare them with traditional varieties,” sales and marketing manager Mrs Petronella Gwasira said. “In the next farming season, we are hoping to start commercial distribution.” Mrs Gwasira said Quton distributed the hybrid seeds through local cotton companies enough to plant about 600 hectares. India’s leading agri-biotech company Maharashtra Hybrid Seeds Company, acquired a controlling stake in Quton in 2015 from Seed-Co in a transaction worth $10 million. The acquisition gave the Indian firm a platform to introduce hybrid seeds to Africa. The foray into African market is expected to strengthen Mahyco’s positioning in the global cotton market. Quton also has operations in Tanzania and Malawi, which predominantly use open pollinated varieties. While Africa was a major cotton growing region, the continent was not using high yielding seeds. It said it would start introducing hybrid varieties before moving to Bt seeds. Zimbabwe’s cotton production recovered last year thanks to the Presidential Input Scheme, which saw the Government investing $42 million to support about 155 000 farmers. Cotton output rose by about 150 percent from 28 000 tonnes in 2015/16 season—the lowest output in more than two decades to about 72 000 tonnes in the last season.

Source: The Herald

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ITC and WTO Partnership to Spell Greater Transparency for Global Cotton Sector

Producers, policy makers and traders will be able to boost their accessibility to the global cotton sector with a new digital tool created by the International Trade Centre (ITC) and the World Trade Organization (WTO). At the WTO’s recent 11th Ministerial Conference in Buenos Aires, the ITC and the WTO introduced The Cotton Portal—a new online platform for cotton product market intelligence. The portal is expected to facilitate a more open cotton trading system by making cotton product trade information more transparent for the daily operations of industry members. “The Cotton Portal will enable cotton producers and traders to harvest greater benefits from increased participation in global trade, particularly for least developed countries,” ITC executive director Arancha González said. “By making the sector more transparent, businesses will have easier access to trade and market intelligence, allowing them to add additional value to their exports.” Designed for exporters, importers, stakeholders and trade support institutions, the portal enables them to search market requirements and business opportunities for global cotton products. The platform equips industry members with a single entry point for cotton market information available in ITC and WTO databases. On the portal, industry members have access to country-specific business contacts, development assistance-related information, market access, trade statistics and links to other cotton sector organizations. Cotton has been a major part of the WTO agenda for the past 14 years. In 2003, four African cotton-producing countries, including Benin, Burkina Faso, Chad and Mali, introduced a Sectoral Initiative on Cotton, which called for cotton subsidies to be eliminated, since they were believed to cause economic hardship for those nations. Twelve years later, in 2015, the Nairobi Ministerial Decision on Cotton was proposed to the WTO—highlighting the importance of growing cotton industries in developing nations, in addition to improving market access for these poverty-stricken countries, reforming domestic support and terminating export subsidiaries. With the cotton portal, the Nairobi decision will take form, enabling industry members to analyze market access issues for cotton products and develop solutions to remedy them. “Today’s launch is an important addition to our efforts in helping the cotton community achieve their development goals,” WTO director-general Roberto Azevêdo said. “By gathering all the relevant information, it means that we can better monitor the implementation of the market access commitments made by members in Nairobi.”

Source: Sourcing Journal Online

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Karl Mayer Relies On Digitization, And Sets Up A New Company

KARL MAYER founded a new enterprise on November 3, 2017. The company’s name is KARL MAYER Digital Factory GmbH with registered office in Frankfurt/Main. For KARL MAYER digitization is an important success factor. With this new business, the KARL MAYER Group wants to build up further-reaching digital competences with an agile environment. Main aim is a fast and flexible development of new digital solutions, offering perceptible added value for the customers. The targeted business models, products and services – as part of KARL MAYER’s digitization strategy – are meant to support the clients in their markets. „In the digital world, too, only those offers are successful which can best satisfy the consumer demands. This is the reason why we consistently focus on customer benefits, and combine our long-standing experience as leading textile machinery manufacturer with new, digital know-how“, says Antonia Gottschalk, Head of Digitization at KARL MAYER, and Managing Director of KARL MAYER Digital Factory GmbH. Besides, the new company’s capacities are intended to complement the ongoing and planned activities in KARL MAYER’s core organization.

Source: Textile World

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