Centrally sponsored schemes are funded by Centre and states combined, as opposed to central sector schemes which are funded wholly by the Centre. The government needs to radically overhaul centrally sponsored schemes by either making them 100 per cent centrally funded or transferring them to states with untied grants. In order to make them more effective, their design and implementation should also go for a complete rejig. These are the findings of one of the multiple studies commissioned by the Fifteenth Finance Commission as part of work in preparing its own report. The studies have been carried out by various think tanks. There are 26 reports. Two reports, by the Indian Council for Research on International Economic Relations (ICRIER), focus on development expenditure in states after the Fourteenth Finance Commission award, on how the states have spent the money, and how the centrally sponsored schemes have fared. “The numbers need to be pruned to make the CSS (centrally sponsored schemes) more efficient as vehicles of development interventions and to ensure that public spending on them becomes more effective in the Centre and the states. The census of CSS indicates that there is no clear-cut indication of their numbers due to the way the Union presents its outlays on CSS in the Union Budget,” the report stated. It also said, “While it may seem that there are only 28 CSS operating at present, in reality the number is almost 10 times greater. This is because each of these 28 schemes has multiple sub-components that are schemes in themselves.” Centrally sponsored schemes are funded by Centre and states combined, as opposed to central sector schemes which are funded wholly by the Centre. In fact there are 30 CSS, for which the budgeted outlay for 2019-20 is Rs 3.32 trillion. The report recommended making them 100 per cent centrally funded and prioritising them according to the national development program or transferring them to the states and with untied grants up to 13 per cent of total expenditure as scheme specific grants with the option to continue them or making some of the fully centrally funded and yet others transferred to the states with a radical rejig of their design and implementation. The report on the spending by states finds that during 2015-16 to 2019-20 — the award period of the 14th Finance Commission — total receipts of all states’ increased by 91 per cent, on account of devolution and by 65 per cent, on account of grants. The 14th FC had recommended an increase in devolution to states from 42 per cent from 32 per cent earlier, something which was accepted by the Modi government. “Eighteen states gained in aggregate terms, on account of both vertical and horizontal devolution. Of these 7 are Himalayan and north-east region states. Ten states lost in aggregate terms, on account of both vertical and horizontal devolution of which 4 are Himalayan and north-east states,” the report stated. The report said that states had additional resources of Rs 9.56 trillion after the 14th FC award. Out of that, average spending on social services was higher by Rs 3.44 trillion and accounted for about 36 percent of the additional expenditure. “Economic services was higher by Rs 3.67 trillion and accounted for about 38 per cent of the additional expenditure and general services was higher by Rs 2.29 trillion and accounted for about 24 per cent of the additional expenditure,” it said.
Source: Business Standard
Termination of service of a worker on completion of tenure in a fixed-term employment will not be considered as retrenchment, according to the Industrial Relations Code Bill. The labour code on Industrial Relations 2019, cleared by the cabinet last week, also says that fixed-term employees will get all statutory benefits like social security, wage etc. on par with the regular employees who are doing work of same or similar nature. The Bill is expected to be introduced in parliament on Wednesday. The Bill consolidates essential elements of three laws — the Trade Unions Act, 1926, the Industrial Employment (Standing Orders) Act, 1946, and the Industrial Disputes Act, 1947 — helping improve ease of doing business. As part of labour reform initiatives, the labour ministry has decided to amalgamate 44 labour laws into four codes—on wages, industrial relations, social security and safety, health and working conditions. The industrial relations code is the third of four labour codes that have got approval from the cabinet. The Labour Code on Wages was approved by parliament in August while the Labour Code on Occupational Safety, Health and Working Conditions has been referred to the standing committee on labour. Under the Code, the ministry has amended the definition of “strike” to bring “mass casual leave” within its ambit, while suggesting that a union will be recognised only if it has support of 75% or more workers. Besides, requirement of a notice period of 14 days has been incorporated for strikes and lockouts in any establishment. “All these steps would bring transparency and accountability in enforcement and lead to better industrial relations, and thus higher productivity,” an official said. “A new feature of ‘Recognition of Negotiating Union’ has been introduced.” This means a trade union will be recognised as sole “negotiating union” if it has support of 75% or more of the workers on the muster roll of an establishment. The Code also says that a negotiating council will be set up for negotiation in case no trade union has support of 75% or more of workers. While the Code has retained the employee threshold at 100, it has given powers to the government to reduce or increase the threshold through notification. 'Flexibility has been provided to reduce or increase the threshold by the appropriate government, for the purpose of seeking permission before closure, retrenchment and lay-off," the official said. States like Andhra Pradesh, Assam, Haryana, Jharkhand, Madhya Pradesh, Rajasthan, Uttarakhand and Uttar Pradesh, where the threshold has been enhanced from 100 to 300 by state amendments, have been protected in the Code. The Code also proposes setting up of a “re-skilling fund” for training of retrenched employees. The retrenched employee would be paid 15 days’ wages from the fund within 45 days of retrenchment. An industrial establishment will have to contribute an amount equal to 15 days’ wages or such other days as may be notified by the central government, to this fund for every worker retrenched. The ministry feels the proposed amendments will make it easier for an employer to engage/disengage workers based on requirement.
Source: Economic Times
The draft policy also seeks to reduce high transaction cost of traders. The government wants to formulate the policy as the sector's growth is critical to boost exports and economic growth. The commerce ministry has sought views of all the ministries, including steel, shipping and others on the draft national logistics policy, which aims at promoting seamless movement of goods across the country, an official said. The draft policy also seeks to reduce high transaction cost of traders. The government wants to formulate the policy as the sector’s growth is critical to boost exports and economic growth. “We have sought some actionable points from all the ministries and departments on the policy,” the official said. The draft was floated by the logistics division of the commerce ministry. The cost of logistics for India is about 13-14 per cent of the gross domestic product (which is over USD 2.5 trillion) and is much higher as compared to other countries. The target is to reduce it to about 10 per cent in the coming years. High logistics cost impacts competitiveness of domestic goods in international markets. Logistics is a key component for increasing competitiveness of exporters and domestic traders by reducing transport cost and time and expediting smooth movement of goods. In February, the commerce ministry had floated a 23-page draft policy with an aim to create a single point of reference for all logistics and trade facilitation matters in the country, which will also function as a knowledge and information sharing platform. It has suggested several steps, including creating a national logistics e-marketplace. The draft also aims at simplification of documentation for exports/ imports and drive transparency through digitisation of processes involving customs, in regulatory, certification and compliance services; and creating a data and analytics centre to drive transparency and continuous monitoring of key logistics metrics.
Source: Financial Express
Tax authorities have identified B2C sales as a key source of leakage of goods and services tax (GST) as consumers are often cajoled into paying in cash without taking a bill and are looking to incentivise digital payments to plug revenue leakages. On Monday, the issue was discussed in detail at the first national GST conference, which was attended by senior officers from across the country, with officials suggesting that a check on this channel of leakage could bolster revenue by 15-20%. “In certain products, the revenue leakage is massive,” an officer told TOI. Under GST, the chain of transactions can help detect leakages but officials fear that a parallel system may have developed through which the entire chain from raw material to inputs and finished goods may be evading taxes. Over the last few months, the government has been seeking to plug revenue leakage and has so far focused on businesses getting bogus tax credits on inputs or cracking down on fly-by-night operators, who often vanish after getting ITC (input tax credit) claims. While tax experts have blamed high rates for incentivising leakages in the B2C mode, the Central Board of Indirect Taxes and Customs is of the view that offering sops to consumers to move to digital payment tools can help mop up more revenue. Sources said multiple options have been discussed by authorities at the Centre and some of the ideas were shared with officers with feedback sought from them. While the government has toyed with the idea of QR Code-based transactions and lotteries, a system of earning points, like credit card loyalty programmes, is also being discussed. These points can be redeemed in case the Government e-Marketplace (GeM) is thrown open for retail transactions. At the meeting chaired by revenue secretary Ajay Bhushan Pandey, officials also discussed ways to bring about uniformity in decisions related to GST as interpretations have differed across states, a senior officer said. Similarly, officers were advised against going after taxpayers to meet revenue targets as the thinking in government is it is often the honest taxpayer who is chased, while evaders get away. While issues such as e-invoicing and the new tax return forms, on which feedback is to be sought next month, were discussed in detail, there was also an analysis of revenue trends, which suggested that a large part of the slowdown was on account of lower imports, even as domestic collections had been growing, despite problems in sectors like auto.
Source: Times of India
Telangana government has sought about Rs 898 crore from the Centre for creating infrastructure at the Kakatiya Mega Textile Park (KMTP) coming up in Warangal. State Minister for IT and Industries KT Rama Rao submitted a memorandum to Union Minister for Textiles Smriti Irani in New Delhi on Tuesday, an oicial press release said here. The Telangana government has also submitted the required documentation sought during the PAC (Project Approval Committee) meeting. The government asked the Centre to sanction Rs 897.92 crore for infrastructure at the textile park, and also early approval of the project, the release said. Rao requested the Union Minister to also finalise the policy for Development of Manufacturing Regions for Textile and Apparel Sector (MRTA) so that projects like KMTP can be benefited and can have a positive impact on the development of the textile sector, it said. The KMTPis in line with the dra policy of MRTA of the Ministry of Textile aimed at establishing manufacturing facilities for domestic and export-led production in apparel and other textile-related sectors, the release said. The park has already received the commitment of FDI totalling USD 145 million from Youngone Corporation, South Korea, and the Telangana government has signed memoranda of understanding for Rs 3,020 crore with 14 large textile/ apparel companies, the release added.
Source: Deccan Herald
States will need to be compensated for their revenue shortfall under goods and services tax (GST) even after 2022 — the sunset year for compensation under the law — because of slow revenue growth, a report commissioned by the 15th Finance Commission (FC) has noted. It shows that states would require compensation of at least Rs 1.67 trillion in 2024-25, because none of them would be able to achieve 14 per cent growth every year. While Karnataka would need the highest compensation among states, Delhi too would face a revenue shortfall to a great extent in coming years, the report warns. Compensation cess is collected over and above the prevailing GST rate on certain luxurious items of consumption. The 15th FC might consider this an important input while it revises the formula for devolving tax revenue from the Centre to the states. This finding of the report might put weight on the states’ side in the devolution formula. States are fearing a reduction in their share after the terms of reference of the FC are revised to include special provisions for defence spending. This fiscal year (2019-20) states are facing an acute crisis due to a shortfall in revenue from all sources, including state GST (SGST) and sales tax. They allege due to structural issues in GST, they would be left with no support after the compensation period ends in 2022. On similar lines, 15th FC Chairman N K Singh has been calling for a simplification in GST. “The issue of GST rates, exemptions, changes, and implementation of the indirect taxes is entirely within the domain of the GST Council. This leads to unsettled questions on the ways to monitor, scrutinise, and optimise revenue outcomes… Since both the FC and the GST Council are constitutional bodies, coordination between the two is now an inescapable necessity,” he said in lecture on November 22. The report, authored by Sachhidananda Mukherjee and R Kavita Rao of the National Institute of Public Finance and Policy, a New Delhi-based centrally funded think tank, also highlights inconsistencies in the data provided by various sources on GST revenue. “Unless the information from different sources (GSTR-1 and GSTR-3B) converges, any projection made from them may be erroneous,” the report notes. GSTR-1 is the tax return form that includes supplies from a company (goods or service) while GSTR-3B is the tax return form that includes the tax paid, input-tax credit utilised, and the summary of purchases and output and turnover of the company for the pertaining period. The report says due to different sets of compliances for the two return formats, the aggregate data populated from these two returns does not match, and makes projections difficult. There is a 20 per cent difference between the compliances of these two monthly returns, and this only adds to the inconsistency, the authors said. These projections form an extremely important input for the Finance Commission because it bases its recommendations on these. The compliance for the summary monthly return (3B) has been struggling to cross 65 per cent even after more than two years of implementation. The report also shows the tax liability does not match the sum of the tax paid in cash and the credit utilised (which should usually be the case) in some quarters, especially the early quarters. In addition, the aggregate credit utilisation data populated from GSTR-3B does not match category-wise credit utilisation. The report uses data from the revenue department in the finance ministry and the data thrown in by the GST Network (GSTN), the IT services back-end of the GST tax system. The two throw different sets of data, making the analysis of GST unviable. A robust IT system and better tax compliance would be the only way to tackle this mismatch, and better projections can be made only when the GST system stabilises, the report notes. GST revenue has grown only 5 per cent this fiscal year, and the compensation paid to states has run into Rs 66,000 crore in the first six months, the data shows.
Source: Business Standard
The new cotton season from October 2019 to September 2020 ushers in hope of lower raw material costs for yarn mills. This could give a leg-up to profitability in the coming quarters amid weak exports. Cotton Corporation of India estimates production to rise 13.6% year-on-year. Therefore, current cotton prices (Sankar-6 grade) are down 8% since September and 16% lower from the high of ₹129 per kg touched in April.
However, analysts reckon that mills would benefit from this drop in prices with a lag. Most of them are saddled with high-price cotton inventory, which eroded profitability in the last two- three quarters. “The spinning industry saw disruptions in production in Q2FY20 owing to reduced demand and volatility in cotton prices," said a recent report by India Ratings and Research Ltd. Larger mills such as Ambika Cotton Mills Ltd, KPR Mill Ltd and Vardhman Textiles Ltd maintained operating margins at about 16-18%, but many small units faced high cotton prices. Shares of Vardhman Textiles and Ambika Cotton Mills have fallen 17% and 28%, respectively, in a year, while KPR Mill’s share price was buoyed by a recent buyback offer. The yarn spinners’ plea to incentivize yarn exports is reasonable given weak exports is the biggest drag for the cotton textile industry. Cotton yarn exports fell to 66 million kg, from 89 million kg in April. “US-China trade war halved yarn exports to China due to weak demand in the region. This was further aggravated by duty-free access allowed to Pakistan and Bangladesh by China. Meanwhile, demand in domestic markets has been impacted by cheaper yarn imports from Vietnam, Thailand and other South-east Asian countries by Indian fabric manufacturers," said Abhishek Rathi, senior analyst (corporate) at India Ratings. Thus, there is a glut of yarn in the local market, which is suppressing prices. Although spinning mills are trying to offset this by developing new export markets, it will take time. In this backdrop, softening cotton prices could improve margins of spinners at least in a couple of quarters. That said, the impact of minimum support prices and easing of trade tensions between the US and China may limit the decline in cotton prices.
Source: Live Mint
Prime Minister Narendra Modi is finally attempting to overhaul India’s most controversial labor laws to attract investment and make it easier to do business in a country where changing archaic rules is a challenge for any government. After a long struggle, his government will push a crucial industrial relations bill allowing companies to hire workers on fixed-term contracts of any duration. The legislation, to be tabled in Parliament’s current winter session, does not seek to change stringent laws on hiring and firing, but allows the government the flexibility to relax the conditions through an executive order. Unlike his last term in power, when Modi decided against bringing this labor reform bill to Parliament, this time around he knows he has the numbers needed. The current changes are part of a process to streamline 44 different federal labor laws into four codes, another step to formalize the $2.7 trillion economy. It comes on the back of several recent reforms announced by Modi’s government to boost investment, including aggressive cuts in corporate taxes, relaxation of foreign investor rules and the biggest privatization drive in more than a decade. “It’s a positive signal of reforms agenda as well as a step toward making India attractive, in the context of the golden opportunity of manufacturing shift from China,” said Gautam Chhaochharia, a strategist at UBS Group AG in Mumbai, adding over the medium term it might change the way companies hire and fire.
Asia Push
With the U.S.-China trade dispute disrupting global supply chains, governments in the region are trying to lure investors with more business-friendly policies. In Indonesia, President Joko Widodo has promised to make changes to his country’s difficult hire and fire laws by the end of the year. The amendments to the labor law would be limited to new hires in order to defuse opposition from the unions. Modi’s cabinet on Wednesday approved the Industrial Relations Code bill, which empowers the government to change the ceiling on employee count for a company to retrench workers without government approval. While the current upper threshold limit of 100 workers has not been changed, the bill allows the government to amend this number without seeking Parliament’s approval. Even though successive governments have agreed that labor reforms are necessary to provide employment to the nearly 1 million jobseekers entering the market each month, the fears of a trade union backlash and partisan politics have been a deterrent to major reforms. Modi’s second term in office has been marked by an ability to push through controversial legislation, including repealing the constitutional autonomy of India’s Kashmir region, through a majority in Parliament. His party has been voted back to a second term in power with a bigger mandate and is closer to having a majority in the upper house of Parliament. Rigid laws on downsizing labor and cumbersome compliances currently force companies either to remain small, employ fewer workers or use capital-intensive methods of production. Restrictive labor regulation in India is associated with a 35% increase in firms’ labor costs, according to a research paper by University of Kent economists Amrit Amirapu and Michael Gechter of the Pennsylvania State University. India ranks 103 out of 141 countries on the competitiveness of its labor market, according to the World Economic Forum. Not everyone agrees that the proposed law will draw in investors. There isn’t much scientific evidence to show that a relaxation in labor laws will make much difference in terms of attracting foreign capital, said K.R. Shyam Sundar, a professor at the Xavier School of Management in Jamshedpur. “It will rather lead to uncertainty.” The government will also need to convince labor unions of the benefits of the proposed changes. The country’s major trade unions plan to hold a general strike to protest the bill on Jan. 8. They are altering the employment profile in such a fashion that hire and fire can be done throughback door,” said Tapen Sen, general secretary of the Centre of Indian Trade Unions. “It’s a dangerous move.” The four codes that are being created by merging various laws, some of which date back to 950s, are wages, industrial relations, social security, and occupational safety, health & working conditions. The government has succeeded in tweaking some laws, such as rules for payment of wages, bonuses, maternity benefits.
Source: Economic Times
Labour department has decided to start a poster and awareness campaign in the city’s textile markets against child labour. Official sources said of more than 100 child labourers rescued in a year in the city, majority of them are employed in the textile markets located on Ring Road, Sahara Darwaja and Salabatpura. In July 2016, Parliament had passed Child Labour (Prohibition and Regulation) Amendment Act. It had amended the Act of 1986 by widening its scope against child labour and provides for stricter punishments for violation. The Act prohibits employment of children below 14 years of age in 83 hazardous occupation and processes. Ashish Gandhi, assistant labour commissioner, told TOI, “We have decided to form a committee of traders for taking up campaign to eradicate child labour in the markets. According to the law passed in Parliament in 2016, employment of children below 14 years of age would invite jail term.” Gandhi added, “Earlier, textile traders caught employing child labourers were fined and given notices, but now they will be arrested. We want to spread awareness in the market areas through posters that employing child labourers would land traders in big trouble.” Champalal Bothra, secretary of Federation of Surat Textile Traders’ Association, said, “It is difficult for us to keep tab on each and every market. Along with the labour department, we have agreed to divide market areas in three zones, to be represented by the presidents of each textile market to stop child labour activities.”
Source: Times of India
New project announcements remain at a multi-year low, while production was depressed by weak consumer durables, non-durables, intermediate and capital goods, the bank pointed out. India's economic growth is expected to slow further in the second half of the year, Singapore's DBS Bank said on Monday. "Real GDP is likely to print 4.3 per cent YoY in 3Q vs 2Q's 5 per cent, nearing the trough for this cycle," DBS said in its daily economic report. Weakness in the crucial consumption sector is likely to be extended into the quarter along with tepid private sector activity. New project announcements remain at a multi-year low, while production was depressed by weak consumer durables, non-durables, intermediate and capital goods, the bank pointed out. Surveys by the Reserve Bank of India (RBI) reflect downbeat consumer sentiments towards income and employment conditions. Indirect and direct tax collections also reflected slower demand, as did sluggish credit growth as banks and non-banks tightened due diligence, it said. Providing a counterweight, fiscal spending likely quickened after slower disbursements in the first half of the year due to the general elections. Net trade is unlikely to be a drag with weak exports accompanied by a sharper fall in non-oil, non-gold imports. "Under GVA (Gross Value Added), we expect 4.1 per cent print, with most sectors barring public administration to have slowed in the quarter," said DBS.The third quarter economic numbers are due this week.
Source: Business Standard
What: Ferrara, Italian luxury, has forayed in the Indian market to set new fashion benchmarks in the fabrics and textile industry.
Who: Ferrara embodies the aesthetic Italian culture in its fabrics. Inspiration is drawn from the art and architecture of Italy in the product designs for Ferrara – embracing both micro and macro structures. With its distinct Italian character and exotic design aura, the brand and its superfine quality are beyond compare.
Collection: An array of worsted fabrics spun in exotic blends such as milk fibre, rose fibre, cashmere, mohair, etc.
Bytes: "The brand marks the essence of Italian fashion. The fabrics used are of superfine quality and is aimed to cater to a discerning niche. We believe that it was essential to create fabrics that would amalgamate luxury and still have utilitarian benefits. The fabric is crafted to give the consumers a feel of luxury and establish its presence in the Indian fashion industry," said Vikram Mahaldar, MD & CEO, OCM.
About Ferrara: Ferrara is synonymous with Italy and is a luxurious menswear brand. The fabrics have exotic blends and they embody the true aesthetic of the Italian culture.
About OCM: OCM, one of India’s largest fabric manufacturers, has a sprawling 37-acre complex that houses a new-age plant with an annual capacity of 8 million metres of fabric and an employee base of 1,900. The company’s ownership lies with the promoters of the Donear Group.
Source: Fibre2Fashion
|
Item |
Price |
Unit |
Fluctuation |
Date |
|
PSF |
960.90 |
USD/Ton |
0% |
11/26/2019 |
|
VSF |
1448.81 |
USD/Ton |
0% |
11/26/2019 |
|
ASF |
2179.60 |
USD/Ton |
0% |
11/26/2019 |
|
Polyester POY |
994.28 |
USD/Ton |
0% |
11/26/2019 |
|
Nylon FDY |
2116.40 |
USD/Ton |
0% |
11/26/2019 |
|
40D Spandex |
4076.55 |
USD/Ton |
0% |
11/26/2019 |
|
Nylon POY |
2315.25 |
USD/Ton |
0% |
11/26/2019 |
|
Acrylic Top 3D |
1093.71 |
USD/Ton |
0% |
11/26/2019 |
|
Polyester FDY |
2386.27 |
USD/Ton |
-0.59% |
11/26/2019 |
|
Nylon DTY |
5369.11 |
USD/Ton |
0% |
11/26/2019 |
|
Viscose Long Filament |
1221.54 |
USD/Ton |
0% |
11/26/2019 |
|
Polyester DTY |
1988.56 |
USD/Ton |
-0.71% |
11/26/2019 |
|
30S Spun Rayon Yarn |
2059.58 |
USD/Ton |
0% |
11/26/2019 |
|
32S Polyester Yarn |
1555.34 |
USD/Ton |
-0.45% |
11/26/2019 |
|
45S T/C Yarn |
2400.48 |
USD/Ton |
0% |
11/26/2019 |
|
40S Rayon Yarn |
1747.09 |
USD/Ton |
0% |
11/26/2019 |
|
T/R Yarn 65/35 32S |
2286.84 |
USD/Ton |
0% |
11/26/2019 |
|
45S Polyester Yarn |
2315.25 |
USD/Ton |
0% |
11/26/2019 |
|
T/C Yarn 65/35 32S |
1903.34 |
USD/Ton |
-0.74% |
11/26/2019 |
|
10S Denim Fabric |
1.26 |
USD/Meter |
0% |
11/26/2019 |
|
32S Twill Fabric |
0.69 |
USD/Meter |
0% |
11/26/2019 |
|
40S Combed Poplin |
0.96 |
USD/Meter |
0% |
11/26/2019 |
|
30S Rayon Fabric |
0.54 |
USD/Meter |
-0.52% |
11/26/2019 |
|
45S T/C Fabric |
0.67 |
USD/Meter |
0% |
11/26/2019 |
Source: Global Textiles
Note: The above prices are Chinese Price (1 CNY = 0.14204 USD dtd. 26/11/2019). The prices given above are as quoted from Global Textiles.com. SRTEPC is not responsible for the correctness of the same.
Louis Vuitton owner LVMH has agreed to buy Tiffany for $16.2 billion in its biggest acquisition yet, as the French luxury goods maker bets it can restore the U.S. jeweller’s lustre by investing in stores and new collections. The $135-per share cash deal will boost LVMH’s smallest business, the jewellery and watch division that is already home to Bulgari and Tag Heuer, help it expand in one of the fastest-growing industry sections and grow its U.S. presence. It will have challenges to overcome too, as spending patterns shift and Chinese shoppers retreat from the United States to buy more at home, one of the side effects of a Beijing-Washington trade war that has weighed on Tiffany. And the U.S. jeweller is still in turnaround mode as it tries to rejuvenate its image and lure shoppers online. But the New York-based brand, founded in 1837 and known for its signature robin’s egg blue boxes, still has a resonance as the go-to purveyor of engagement rings only a handful of rivals can match, such as Richemont-owned Cartier. “It’s an American icon, which is now going to become a little French too,” LVMH’s Chairman and Chief Executive Arnault told Reuters in an interview. LVMH finance chief Jean-Jacques Guiony told analysts that taking Tiffany off the stock market and investing in its products would help the company deliver its revival plan. “We expect to bring Tiffany time and capital, which are two things that are not too easy to get when you report quarterly to the stock market,” he said, adding LVMH would build on popular new Tiffany lines such as its more modern “T” jewellery ranges and saw potential for the brand in accessories like scarves. The purchase crowns a string of acquisitions through which Arnault, France’s richest man, has built up his conglomerate, including fashion brands like Christian Dior, wineries, and beauty retailers like Sephora. Not all are profitable to the same degree - the group is still trying to revive its Marc Jacobs label - but Arnault cited the firm’s 2011 acquisition of Bulgari as a model for Tiffany. The group invested in store revamps, new product ranges and communication at the Italian jeweller, and lifted operating profits fivefold, Arnault said. “I’m not saying we can do that (with Tiffany), but I think the potential is there,” he added, saying the deal, to be financed with bonds and loans, would add 500 million to 600 million euros to LVMH operating profits in the first 12 month. LVMH does not break out earnings for individual brands. The deal is expected to close in mid-2020.
Source: Reuters
Thai Acrylic Fibre Co Ltd, (TAF) - part of the $41 billion Aditya Birla Group – has started the production in its new line installed recently. One of the largest acrylic fibre companies in the world, the production capacity of TAF has increased to 130,000 tons per annum with a significant portion dedicated to the production of specialty fibres. The new line will exclusively produce specialty or value-added products. “As a company we are increasingly focusing on our value-added product portfolio. The most important factor is product innovation. Over the years, the demand for specialty fibres has witnessed a huge growth as our customers and the industry are looking for meaningful innovation. Our new line will produce the next generation of specialty fibres that have enhanced performance, fusion functionalities with special emphasis on sustainability in line with the sustainable goals of the Group,” said Satyaki Ghosh, CEO Thai Acrylic Fibre Co and domestic textiles. The new line will also produce Radianza - the flagship product of TAF – thereby increasing the production capacity of the gel-dyed fibre. “Our demand for Radianza has seen a major growth in the last couple of years due to the demand for sustainable and environment friendly products by the consumers and apparel brands. We are witnessing the growing demand for Radianza from not only the traditional flat knitting segment but now also from circular knitting and woven segment. The new line will produce Radianza with additional features that will help support the requirements of these segments,” added Ghosh.
Source: Fibre2Fashion
Picanol will demonstrate its latest weaving technology at third edition of ITMACH India, which will take place in Gandhinagar, Gujarat, the most important hub of textile manufacturing in India, from December 5-8. ITMACH India will see the Indian premiere of Picanol’s brand new airjet machine, the OmniPlus-I, at Picanol’s booth in Weaving Hall a1/2/3/4. This machine further builds on the solid base of nearly 40 years of experience in airjet weaving, during which over 100,000 airjet machines have so far been shipped. The OmniPlus-i that will be on display at ITMACH India will be a 220 cm machine weaving a denim fabric at the highest industrial speeds. “India is a market that is of crucial importance to Picanol as it is one of the world’s key textile markets. We are therefore very proud to be able to demonstrate our latest airjet machine, the OmniPlus-i, to our Indian customers for the very first time. The new OmniPlus-i features a redesigned reed motion, optimised relay nozzle set up, and it can be combined with SmartShed, the full electronic controlled shedding motion, said Johan Verstraete, vice-president weaving machines. “We have been successfully serving the Indian market since 1956 and in light of the potential and expected growth of the Indian market, we decided to set up our own organisation in India in early 2008. The aim behind this move was to ensure that we could more actively support our Indian customers. With the broadest product range on the market in both airjet and rapier weaving machines, improved local services and considerable presence, we remain highly committed to the Indian market and it is our ambition to further reinforce our position as the leading provider of weaving machines for the entire Indian textiles sector.” In addition to its main office in Delhi, the regional offices in Mumbai and Coimbatore are clear proof of Picanol’s strong presence in the Indian market. In total, a team of 35 Picanol professionals in India are committed to providing outstanding service to its customers. Picanol considers that in this fast-changing world of weaving, the needs of weaving mills in general and the expectations of its customers and their operators are evolving rapidly. Nowadays, its market is driven by an increasing concern for environmental topics, higher costs, and lower availability of resources and skills, as well as the digital revolution that is affecting all industries. Picanol has always been a pioneer in regard to offering the latest weaving technology, and it has the most complete range in weaving technology available on the market. The Picanol airjet machine portfolio comprises the new OmniPlus-i, Omniplus Summum, Terryplus Summum and Omniplus 800 TC machines, which combine heritage with a clear vision of the future. Meanwhile, for versatile and productive rapier weaving, Picanol offers a broad range of weaving machines with its unique, future-oriented OptiMax-i flagship product, GTMax-i 3.0, GTMax-i, and GT-Max.
Source: Fibree2Fashion
Recently, Oerlikon invited visitors to Shanghaitex in China on a journey into future of manmade fibre production. It showed its guests a vision of sustainable and automated manmade fibre production under the motto ‘Clean Technology, Smart Factory’. Together with numerous other innovations, all this forms the new DNA of Oerlikon manmade fibres segment. Launched to create new standards in texturing: the Eafk Evo generation of machines promises superior speeds, greater productivity and consistently high product quality, along with lower energy consumption and simpler operation vis-à-vis comparable market solutions. Oerlikon Barmag showed these wide-ranging capabilities at the trade fair with a high-end design from the new system platform. In particular, the numerous value-added features included two cool technology: the optimised EvoHeater and the EvoCooler, a completely newly-developed active cooling unit. Wings Fdy is now available for the polyamide 6 process. With this development, the tried and-tested Wings technology – to date well-known for Fdy yarns from polyester manufacturing – is also now available for the challenging polyamide 6 process. This new 24-end winding concept makes the efficient production of Fdy PA6 yarns a reality. Extending the polyamide yarn production from 12 to 24 ends with DIO, Wings Fdy pays yarn producers dividends, particularly in terms of investment expenditure and operating expenditure: significant savings with regards to energy footprint due to its more ergonomic design. The enclosed draw unit ensures low spin finish emissions, offering a safe working environment. Offering swift string-up, the optimised yarn path of the tried-and tested Wings Fdy PET system is united with the high relaxing performance of conventional polyamide systems to create a completely new concept. The 24-end Wings Fdy PA hence profitably combines the benefits of both processes. The result is outstanding yarn properties, excellent dyeability, optimum process performance and high full package rate. A perfect package build guarantees excellent further processing properties in the downstream processes. With a 116-mm stroke, this winder makes high package weights possible, therefore delivering added-value yarns for further processing. As a consequence, yarn manufacturers can give themselves a competitive advantage in the marketplace. The BCF S8 production plant promises carpet yarn manufacturers greater punching power within a fiercely contended market. Superlative spinning speeds, up to 700 filaments per yarn end, finer titers down to 2.5 dpf – the performance data and technological finesse of the new system already made an impression at its unveiling at the German Domotex trade fair in January. At Shanghaitex 2019 the monocolour and the tricolour version of the BCF S8 was unveiled. Polyester and its applications are omnipresent in our everyday lives. Whether as beverage bottles, film packaging, high-tech sports shirts or safety belts, polyester excels with its excellent mechanical properties and inexpensive production. However, the constantly rising demand requires responsible handling of global resources. For this reason, it is not only ‘virgin polyester’ generated from crude oil that is exclusively the raw material for manufacturing, so too is polyester recycled from post-production and postconsumer waste. Processing production waste also helps cut raw material, disposal and transport costs, hence increasing efficiency. With the new VacuFil recycling series, Oerlikon Barmag in cooperation with its subsidiary company BBEngineering is offering a solution catering to a ‘clean technology’ production philosophy. Decades of experience in the areas of extrusion, filtration and spinning systems have been bundled into a new, innovative core component – the vacuum filter. It unites gentle largescale filtration and controlled intrinsic-viscosity build-up for consistently outstanding melt quality. The vacuum unit – located adjacent to the filter – swiftly and reliably removes volatile contamination (spinning oil, etc). The excellent degasification performance additionally relieves the energy-intensive pre-drying process. The modular structure of the VacuFil range offers numerous possibilities for the process guiding system. Whether as a standalone solution with downstream granulation or as an inline variant with 3DD additive feed – customer requirements can be optimally catered for with various system configurations. Oerlikon develops modern materials, systems and surface technologies and provides specialised services aimed at securing high-performance products and systems with long lifespans for customers. With its Oerlikon Barmag, Oerlikon Neumag and Oerlikon Nonwoven brands, Oerlikon Manmade Fibers segment is the world market leader for manmade fibre filament spinning systems, texturing machines, BCF systems, staple fibre systems, solutions for the production of nonwovens and as a service provider– offers engineering solutions for the entire textile value added chain.
Source: Fibre2Fashion
