The Synthetic & Rayon Textiles Export Promotion Council

MARKET WATCH 07 AUGUST, 2020

NATIONAL

INTERNATIONAL

 

Govt to launch Focused Product Investment Scheme for funding in manmade fibre segment: Textile Secretary

The government is set to launch the Focused Product Investment Scheme to attract funding in the manmade fibre segment, in an effort to boost India's share in the global textiles market, a top official said on Thursday. Speaking at the Invest India Exclusive Investment Forum (Japan Edition) through video conferencing, Textile Secretary Ravi Capoor said the proposed scheme aims to promote both Greenfield as well as browned investments in the manmade fibre segment. Under Greenfield investment, a company builds its new facilities, whereas brownfield funding takes place when a firm purchases or leases an existing facility. The Centre is in the advanced stage of finalising setting up of integrated mega textiles parks, which are proposed to be established near ports in the country, Capoor said. Efforts are also underway to position India as one of the major producers of technical textile as the country's share is poor in the World's USD 250-billion market involving the segment, the textile secretary said. Technical textiles include textiles made for automotive applications, medical textiles, geotextiles, agro textiles, and protective clothing, among others. Capoor also said the textile ministry wants to set up at least two textiles machinery Manufacturing parks in the country and is looking forward to a major investment from Japan in the segment. The manmade fibre segment comprises 70 per cent of the global textiles trade. The size of India's textiles industry is close to USD 150 billion, of which USD 40 billion is exported. The textiles sector is the largest employer in the country after agriculture, with a direct and indirect manpower of nearly 10 crore. "We are coming up with a special scheme, which is called the Focused Product Investment Scheme, especially designed for Greenfield and brownfield investment in the manmade section. So, top-40 lines, which are traded in the world in manmade fibre, we are going to incentivise in a very big way," the Textiles Secretary said. He added that the manmade fibre sector is expected to attract large investments once the scheme is rolled out.

Source: Economic Times

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Smriti Irani-run Textiles Ministry scraps 28-year-old Handloom Board

The Union Ministry of Textiles quietly abolished the 28-year-old All India Handloom Board (AIHB) in the last week of July. Established in 1992 with the aim to advise the government in formulating policy for the overall development of the handloom sector, the AIHB played a vital role in safeguarding the interests of weavers and SMEs, feel experts. Signed by the Development Commissioner for Handlooms, Sanjay Rastogi, the notification dated July 27 reads, “In consonance with the Government of India vision of ‘Minimum Government and Maximum Governance’, a leaner government machinery and the need for systematic rationalisation of government bodies, the Government of India has abolished All India Handloom Board with effect from the date of this resolution.” Reacting to the development, Wahid who owns three handloom units in Rewdi Talab area of Varanasi, says he was disappointed. “Although the Board was not able to do much for the welfare of the weaver community, there was at least a body which we could approach at the time of need,” said Wahid. Idrish Ansari, President of Bunkar Dasktar Adhikar Manch, Varanasi said the decision did not come as a surprise. “It was coming…it was inevitable,” he says. Asserting that the BJP governments at both the Centre and UP have methodically crushed the industry, Ansari noted, “95 per cent units (handloom and powerloom) in Varanasi are shut due to the unplanned lockdown”. “Increased electricity bills have added to our woes. Earlier we were provided subsidies but the BJP government has stopped it. The electricity department has sent bills ranging from Rs 30000 to Rs 100000. How can a weaver who is out of work for months’ pay such a heavy bill?” questioned Ansari. Handloom dealers believe that the shrinking contribution of the handloom industry in the rural economy has provided the Modi government a pretext to abolish the Board. “Why would the Modi government feed and run an advisory board to run an industry…Minimum Government and Maximum Governance is just a pretense,” said a dealer from Varanasi. It is important to note here that in the beginning, the Board had the Union Minister of Textiles as its chairman, with members drawn from the Central and state governments and NGOs from the handloom industry, but it was reconstituted later. As per the website of the Ministry of Textiles, the AIHB was last reconstituted for a period of two years in 2014 and the 1st meeting of the re-constituted All India Handloom Board was convened on 17th February, 2014 at New Delhi. There is no record available on the website after 2014.

Source: National Herald India

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CBIC directs Customs to check safety of explosives in warehouses, ports

The Central Board of Indirect Taxes and Customs on Thursday directed field offices to verify within 48 hours that all explosive materials lying in Customs warehouses and ports meet safety and fire standards and pose no danger to people's lives. The Central Board of Indirect Taxes and Customs (CBIC) said this precautionary step has been taken in view of the recent incident of an explosion in a foreign country caused by such material. "CBIC has urgently directed Customs and field formations to immediately confirm and verify within 48 hours that any hazardous and explosive material lying in warehouses and ports across the country meets all safety and fire standards and presents no danger to life and property," the CBIC tweeted.A huge explosion on Tuesday in the port of Beirut, capital city of Lebanon, left about 135 people dead and 5,000 injured. More than 2,000 metric tonnes of ammonium nitrate stored in a warehouse in the Beirut port has emerged as the possible source of the blast.

Source: Business Standard

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India may allow low threshold for beneficial owner under the new FDI rule

India may prescribe a low threshold for benecial ownership under the foreign direct investment (FDI) policy, which was recently amended to require prior government approval for investments originating from China and other neighbouring countries. Policymakers have deliberated both a 25 per cent and a 10 per cent limit but are veering  around to the lower one. A nal call will be taken at the highest level of government, officials said. The 10 per cent limit is consistent with the definition of benecial ownership in the Companies Act. The Department for Promotion of Industry and Internal Trade (DPIIT) has already held inter-ministerial consultations as well as discussions with other stakeholders. Cabinet approval may be sought for the nal proposal, a government oicial familiar with the deliberations told ET. The lower limit will ensure that while small and nancial investments will not face scrutiny, signicant investments from China and other countries covered by the new regime will face checks. On April 18, India tightened its FDI policy for countries with which it shares a land border, putting investments from them on the approval route. This change meant that any direct investment from Bangladesh, China, Pakistan, Nepal, Myanmar, Bhutan and Afghanistan required government clearance. The restrictions also covered FDI routed via entities set up in other jurisdictions. The FDI policy, however, does not prescribe any investment threshold for such approval, implying that a project involving even small amounts would require approval. Moreover, it could also cover investment by venture capital and private equity investors if their funds in turn had Chinese involvement. A dened benecial ownership threshold will exempt investments below that level from scrutiny. Investors have so far relied upon denitions for benecial ownership in other Acts. The Companies Act denes signicant benecial owner as an entity that holds indirectly, or together with any direct holding, not less than 10 per cent of the shares or voting rights in shares or has a right to exercise signicant inuence or control in any manner other than direct holding alone. Under the Prevention of Money Laundering Act (PMLA), it is dened as controlling ownership interest in a company of more than 2 per cent of shares and 15 per cent in case of a partnership. A Department of Ependiture order on July 24 imposing restrictions on bidders for government procurement pegged benecial ownership at a 25 per cent threshold. The DPIIT, in the press note issued on April 18, said the FDI policy review was aimed at "curbing opportunistic takeovers/acquisitions of Indian companies due to the current Covid-19 pandemic".

Source:   Economic Times

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India will play big role in post-Covid global economic recovery: Minister

Union Minister Jitendra Singh on Thursday said India will be an important pillar of the post-coronavirus global economic recovery and that the road map for winning the battle against the pandemic lies in countries restarting the economy and strengthening cooperative federalism. Addressing an event, he said that India has set the tone for global collaboration to deal with the pandemic under the leadership of Prime Minister Narendra Modi. Singh said that extraordinary foreign outreach of the prime minister the last six years has greatly helped informing such an international coalition against the pandemic. He was speaking after inaugurating an international workshop on "Covid-19 -- good governance practices in a pandemic", jointly organised by Indian Technical and Economic Cooperation (ITEC), Ministry of External Affairs, National Centre for Good Governance (NCGG), Department of Administrative Reforms and Public Grievances (DARPG). Singh, the Minister of State for Personnel, said that team work, compassion and statesmanship have defined India's governance in response to the Covid-19 pandemic and it withstood the governance challenge with a robust digital framework. He said that it was Prime Minister Modi who gave a wake-up call to the world to fight this challenge by implementing an early nationwide lockdown despite a few cases of infection in India. Singh said that the foresight and vision of the prime minister helped India to fight the pandemic in an effective manner and the same was emulated by many other countries. Dwelling on the theme of mutual international cooperation, the minister said that Modi was not only instrumental in creating a Covid-19 emergency fund with a commitment of $10 million, but also addressed the pandemic issue at SAARC, NAM, G-20 and other platforms, besides engaging with the heads of government and states on individual basis, according to an official statement. Singh said that a package of over Rs 20 trillion under Atmanirbhar Bharat announced by the prime minister is around 10 per cent of India's GDP and was one of the highest in the world to overcome the challenges of the pandemic, it said. He said that India will be an important pillar of the post-Covid-19 global economic recovery. Singh said that the road map ahead for nations in winning the battle against the Covid-19 pandemic lies in restarting the economy and strengthening cooperative federalism, the statement issued by the Personnel Ministry said. He said that the thrust is for stronger institutions, stronger e-governance models, digitally empowered citizens and improved healthcare. The road ahead focuses on 'Do Gaj Doori' social distancing, which has now become a global norm, the minister added. In his address, Minister of State for External Affairs V Muraleedharan said that developing countries were hit hard by this pandemic due to its limited resources and health and medical infrastructure. But India under Prime Minister Modi took the lead in reaching out to fellow countries both in the region and outside with medical and other aid, he said. Muraleedharan said that India is also taking a lead for development of vaccine in collaboration with other countries of the world. The two-day conference is being attended by 184 participants comprising diplomats, civil servants and health experts from 26 countries spread over South Asia, South East Asia, Latin America and Africa. The workshop was conceptualised with the objective of disseminating India's good governance practices to ITEC countries.

Source: Business Standard

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Govt to look into concerns of Japanese investors, says Piyush Goyal

Piyush Goyal Dwelling on the Indo-Japan close relationship, Goyal said that both share common interests in economic and strategic fields. An inter-ministerial group will look into and resolve key challenges being faced by Japanese investors in India, Commerce and Industry Minister Piyush Goyal said on Thursday, while pitching for greater bilateral trade and business ties with Japan. Speaking at the third Edition of the Invest India Exclusive Investment Forum-Japan Edition, Goyal said the government will meet 50 companies from Japan in four separate sessions. Half of these companies are prospective investors while the other half are already operating in the country. Essentially a digital roadshow for Japanese companies, the event saw top officials from the ministries of textiles, heavy industry, pharmaceuticals, and food processing, among others; pitch India as a lucrative hub for potential Japanese investments. The country is the fourth-largest investor into India with more than $33.49 billion, or 7.13 per cent of all investments pushed in since 2000. Japan’s Minister for Economy, Trade & Industry, Hiroshi Kajiyama reminded that Japanese companies are currently in the process of working on more than 200 investment plans in India. However, many of them are being delayed due to the coronavirus pandemic, he added. “As the world has recovered from the grip of the Covid-19, the Government of India has been preparing strategies and Action Plan not only for business continuity and is set to a revival but also setting out red carpet for global investors to continue to choose India as the preferred destination for investments,” said Goyal.  Dwelling on the Indo-Japan close relationship, Goyal said that both share common interests in economic and strategic fields. He said that economic relations between India and Japan have vast potential for growth. “Japan’s interest in India is increasing due to variety of reasons including India’s large and growing market. With its large population and growing consumer base, India is the preferred destination for Japanese investments. There are more than 1,400 Japanese companies to work within India and well treated 5,000 business establishments around the country and 10,000 Japanese brothers and sisters are now leading a very fulfilling and productive life in India,” the minister stressed. New Delhi recognises that the relationship with Japan has been a fruitful one in various sectors such as automobiles, chemicals, consumer goods, food processing and today digital world provides numerous opportunities. But while the partnerships have so far focused on technical cooperation, the government is now looking to Japan as a strategic and investment development partner.  Both the countries have mutually agreed to taking up the issues with Japan companies on a cooperative basis. In the area of science, technology and innovation, the collaborations have been increasing significantly. Department for Promotion of Industry and Internal Trade (DPIIT) Secretary Guruprasad Mahapatra said India is planning to set up the 13th Japanese industrial township in Assam, a move aimed at promoting domestic manufacturing in key sectors. He also stressed that work on the GIS enabled data base of industrial areas and clusters across the country are afoot.

Source: Business Standard

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RBI's silence on bond purchases may have left traders disenchanted

For the most part, Indian sovereign bonds had priced in the central bank holding rates. It was the absence of guidance on debt purchases and the extent of the economic slowdown that left traders disappointed. The yield on most-traded 5.79 per cent 2030 notes rose four basis points to 5.86 per cent, after climbing as high as 5.89 per cent, following the Reserve Bank of India’s decision Thursday to keep the key policy rate unchanged at a record low. The yield on 6.19 per cent 2034 bonds also gained four basis points, and the rupee was steady. The RBI held the repurchase rate at 4 per cent, as it chose to wait for inflation to cool before adding to steps aimed at supporting a fragile economy. Gross domestic product is set to contract in the fiscal year through March 2021, Governor Shaktikanta Das said, without giving a specific forecast.

Traders, vegetables

“The pause in rates was on expected lines, but what may have disappointed the market is the lack of future visibility whether in terms of rate cuts or any growth outlook,” said Arvind Chari, head of fixed income at Quantum Advisors Pvt. “The RBI may continue to remain tactical on the open-market operations announcements, which has served it well.” Traders have been awaiting word from the central bank on how it plans to manage the record Rs 12 trillion ($160 billion) of borrowings. The RBI has resorted to discreet secondary market purchases and done two Federal Reserve-styled Operation Twists of Rs 100 billion each this fiscal year. In comparison, Indonesia has waded deep into debt monetisation. “Yields rose on rate status quo as well as no RBI action on further liquidity measures to support the market,” said Avnish Jain, head of fixed income at Canara Robeco Asset Management Ltd. “However, the RBI has done ad-hoc OMO purchase/Operation Twist whenever yields have gone up, and market participants would be wary of the same.” Asia’s third-largest economy is struggling to recover from one of the world’s biggest lockdowns, which brought most industries to a virtual halt but failed to slow the spread of the coronavirus outbreak. The RBI has pumped in billions of dollars into the financial system and cut its key rate by 115 basis points this year to encourage banks to lend more. Yet loan growth has been languishing because of fears of more bad loans. Still, some investors said that relatively modest gain in yields shouldn’t be mistaken as a likely end to the aggressive easing cycle. “Today’s inaction in no way suggests a U-turn in interest rate trajectory,” said Lakshmi Iyer, chief investment officer for debt at Kotak Mahindra Asset Management. “Growth worries remaining, the accommodative bias suggests scope for further easing as inflation recedes in the second half of the fiscal 2021.”

Source: Business Standard

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'Include revised definition for restructuring MSME debt'

While welcoming the Reserve Bank of India's (RBI's) announcement of providing a framework for restructuring of MSME debt, the Indian Texpreneurs Federation (ITF) has requested the country's central bank to include the scheme as per the revised definition of MSMEs notified by RBI vide circular dated July 2, 2020, as it will benefit the spinning sector. Post-COVID-19, there is immense opportunity for Indian textile companies due to the favourable transition as preferred export destination coupled with strong manufacturing capabilities. To utilise this opportunity, improvement in liquidity is the only catalyst required for the textile companies, and this requirement also materialises with today's RBI announcement of framework for restructuring MSME debt, ITF convenor Prabhu Dhamodharan said in a statement. "We estimate around 30-40 per cent of companies in our sector (based on a survey of 1,800 companies whose liquidity position is precarious) would benefit immensely through the implementation of restructuring scheme and this could kickstart a revival for the textile industry itself," Dhamodharan said. "Our only request would be to include this scheme for MSMEs as per the revised definition notified by RBI vide circular dated July 2, 2020, which would enable a comprehensive coverage of companies. This change is much needed for the spinning sector to get eligibility for the scheme," he added. The key features of the resolution framework, for exposures other than personal loans, announced by the RBI today include constituting an Expert Committee on Resolution of Stressed Assets, with KV Kamath as its chairman. The Expert Committee will make recommendations to the RBI on the required financial parameters, along with the sector specific benchmark ranges for such parameters, to be factored into each resolution plans.

Source: Fibre2fashion

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FinMin unlikely to take Covid-hit FY21 as a base for FY22 Budget

When the Finance Ministry begins work on the 2021-22 Budget, it is unlikely to take ‘one-off’ 2020-21 as the base year for its revenue and expenditure calculations, Business Standard has learnt. Instead, 2019-20 could be the base from which the Budget estimates for next year are calculated. Officials say the revenue collections and expenditure outlay this year cannot serve as the basis for next year’s Budget estimates due to the Covid-19 pandemic, the nationwide lockdown, and the economic distress. “This is a special year. This year all our Budget numbers ...

Source: Business Standard

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Hit by Covid, govt goes all out to expedite its fresh push for manufacturing in ‘champion sectors’

In the virtual meeting, DPIIT secretary Guruprasad Mohapatra sought industry’s feedback to firm up a new strategy for manufacturing. Senior executives and members of industry bodies like CII and Ficci attended the meeting. The department for promotion of industry and internal trade (DPIIT) on Wednesday convened a meeting of senior industry executives to expedite its fresh push for manufacturing in “champion sectors”, including pharma, textiles, auto components, aerospace and defence, under the Atmanirbhar Bharat programme. The bid to shore up domestic manufacturing by successive government hasn’t yielded much success despite economic liberalisation and the share of manufacturing in the country’s GDP has remained stagnant at about 15-17% for at least three decades now. In the virtual meeting, DPIIT secretary Guruprasad Mohapatra sought industry’s feedback to firm up a new strategy for manufacturing. Senior executives and members of industry bodies like CII and Ficci attended the meeting. The focus was to not just to find ways to bolster manufacturing but also encourage domestic companies to invest despite challenges posed by the Covid-19 outbreak, said a source. A contraction in manufacturing exacerbated in July, having recovered in each month until June following a record fall in April. The manufacturing Purchasing Manager’s Index touched 46 in July, compared with 47.2 in June, 30.8 in May and 27.4 in April, while a sub-50 print suggests contraction. The Modi government had in 2014 sought to prepare action plans for 25 sectors under its Make in India initiaive, the scope of which was later widened to cover a total of 27 “champion sectors”—15 in manufacturing and 12 in services. Recently, at an Assocham webinar, Mahapatra laid much emphasis on having “a lot of policy predictability in India so that policies are not changed from budget to budget or from event to event”. Already, the DPIIT is working on a “genuine” single window clearance system for investors, finalising a land bank with the help of states and drastically pruning the need for a maze of licences for investors to set up units. Already, a status check ordered by a committee of secretaries (CoS) revealed that the 35 central ministries/departments among them are presiding over a regime of as many as 767 pre-establishment/preoperation licences! Add to these the multitude of inspections and approval renewals an investor is required to go through after the commencement of operations and, one could call the country’s regulatory system anything but investor-friendly. The department is also bolstering “an Investment Clearance Cell” that will put in place a one-stop digital platform for investors to obtain all requisite central and state clearances/approvals in a time-bound and hassle-free manner. DPIIT has already undertaken stakeholder consultations with investors, including Foxconn, Samsung, Wistron and Yazaki, and their concerns have been shared with the ministries concerned. The 27 champion sectors also include bio-technology, capital goods, chemicals and petrochemicals, electronics, leather & footwear, food processing, gems and jewellery, railways, tourism, medical value travel, transport and logistics, accounting and financial services, education and legal services.

Source: Financial Express

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Textile prices recovered in June, no sustainable recovery yet: Ind-Ra

Prices of textile products recovered broadly in June 2020 from the lows of April and May on account of gradual resumption of operations, India Ratings and Research said on Wednesday. According to Ind-Ra, several textile companies have increased utilisation of their respective capacities after the easing of lockdown restrictions since May 2020. "The inventory pile-up, lower channel liquidity, and labour migration in the context of subdued demand will continue to impact textile operations and exports in 2FY21," the ratings agency said in a credit report on the textile sector. "Furthermore, the pick-up in the domestic demand in June could only be a flash in the pan after the unlock and hence there is a need to watch its sustainability. The rating agency noted that extension of Rebate of State and Centre Levy of Taxes scheme has provided some respite to exporters. "Ind-Ra believes there could be opportunities emanating from global retailers looking to diversify away from China. The segments to benefit are garments and home textiles," the statement said. On the sub-segments of the textile industry, the ratings agency pointed out that international cotton prices (US) continued to recover in June, after dipping in April. "With India cotton prices remaining stable in June, Ind-Ra expects cotton exports to inch up due to a better pricing environment," the statement said. "Fibre prices are steady, but yarn prices are weak, which will continue to pressure the margins of industry participants. Polyester staple fabric to cotton spread is the lowest since 2016; thus, the switching rates are likely to slow down a bit in the near term." It noted a stronger recovery story on the man-made textiles side, with crude oil prices continuing to increase after falling in April 2020. "Drawn texturised yarn price needs a special mention, which increased in June 2020. However, on a YTD basis, the price for imported purified terephthalic acid and monoethylene glycol fell," the statement said.

Source: Daji world

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Reliance Industries second biggest brand globally after Apple

 “This year’s highest entrant at number two, Reliance Industries excels on every attribute,” FutureBrand said, releasing its 2020 Index. Billionaire Mukesh Ambani’s oil-to-telecom conglomerate Reliance Industries has been ranked second biggest brand after Apple on the FutureBrand Index 2020. “This year’s highest entrant at number two, Reliance Industries excels on every attribute,” FutureBrand said, releasing its 2020 Index. One of the most profitable companies in India, Reliance is, “very well respected” and “seen as behaving ethically” as well as being associated with “growth”, “innovative products” and “great customer service”, it said. “In particular, people have a strong emotional connection with the organisation.” FutureBrand, which is a global brand transformation company, said part of Reliance’s success could be attributed to Mukesh Ambani’s recasting of the firm as a one-stop-shop for Indians. “The chairman built on the existing petrochemicals business, transforming it into a digital behemoth designed to meet every customer need. “Today, this company is engaged in a number of sectors including energy, petrochemicals, textiles, natural resources, retail, and telecommunications. Now that Google and Facebook are taking equity stakes in the firm, we may see Reliance jostling for the top spot in the next Index,” it said. FutureBrand said six years on from the first FutureBrand Index, the world has changed dramatically, priorities have shifted and the globe’s top 100 companies are dealing with challenges unthinkable even 12 months ago. “The FutureBrand Index is a global perception study that reorders PwC’s Global Top 100 Companies by Market Cap on perception strength rather than financial strength,” it said. “While the FutureBrand Index 2020 has uncovered a number of seismic shifts in the way companies work and how they present themselves to the outside world, one key theme has stood out: individuality.” The 2020 list is topped by Apple, while Samsung is ranked third, followed by Nvidia, Moutai, Nike, Microsoft, ASML, PayPal and Netflix. Reliance ranks 91st on PWC 2020 list, it said. “A slew of new entrants to our Index include ASML Holdings, PayPal, Danaher, Saudi Aramco, and American Tower Corporation. In total, there are 15 new entrants this year, seven of which make it into the top 20, including Reliance Industries slotting in at number two,” it said. The FutureBrand Index is not based on consumer research. Unlike most other rankings, the Index offers a rigorous assessment of how prominent companies are doing and are likely to do over the next few years. “We are living in unprecedented times,” it said, adding the world is living through the worst healthcare crisis in a century. “But out of this will emerge a re-imagined world, and it will be up to leading companies and the people who work for them to respond to new demands and new expectations,” it said. The FutureBrand Index 2020 examines the world’s leading firms and determine how they have fared over the past year. “Our unique perspective shines a light on the innovators as well as the brands which have successfully navigated sector-specific rough waters. As we discovered, it can be premature to write off a company in difficulty and risky to extol the virtues of a seemingly unbreakable brand,” it added.

Source: Hindustan Times

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Raymond UCO launches high performance anti-viral denim

Raymond UCO, the pioneer in denim innovation, in partnership with HeiQ, has launched a highly protective denim fabric range with HeiQ Viroblock, a sustainable, antiviral & antimicrobial technology that has been proven effective to destroy 99.99 per cent viruses. Along with this launch, Raymond UCO has also unveiled its signature functional denim range Shield. Shield collection is a compelling innovation in the area of personal health and hygiene, offering a wide range of denim fabrics that aim to fight viruses and bacteria. This innovative denim range also features fabric powered by HeiQ Viroblock technology which has been tested effective against a dozen viruses and bacteria, including SARS-CoV2, H1N1, H5N1, H7N9, H3N2, and sendai virus, all with an effectiveness above 99.99 per cent. Raymond UCO’s association with HeiQ has been pivotal in global launch of innovative anti-bacterial fabrics a couple of years ago with HeiQ Pure. Studies suggest that viruses and bacteria can remain infective on textile surfaces for days. Human Coronavirus (SARS-CoV) persist for up to 2 days on surgical gowns at room temperature. In this context, antiviral treatments for textiles can significantly reduce the risk of transmission and contamination thus ensuring hygiene and safety. HeiQ Viroblock is a unique combination of advanced silver and vesicle components which is imparted technically on the fabric surface. These active components in the HeiQ Viroblock kill bacteria and destroy common harmful enveloped viruses within a short time span of 2 minutes of exposure (according to modified AATCC100 test conducted on Sendai virus). HeiQ Viroblock is designed to last on the fabric even after repeated domestic washes. HeiQ Viroblock is certified as safe and sustainable with all its ingredients designated as cosmetic grade, bio-based and recycled. Beta Analytics Testing Laboratory has certified that HeiQ Viroblock contains 72 per cent bio-based carbon. It is EU REACH and US FIFRA compliant, Oeko-Tex certified, ZDHC and Bluesign homologised. Denims treated with HeiQ Viroblock are complaint with EU BPR and US EPA. The HeiQ Viroblock ingredient is marketed under brand name HeiQ V-Block in the US. “We are very grateful to see how the entire textile industry is working hard to adapt the world’s best antiviral textile technology into not only face masks and PPEs, but also daily clothing like denim. Consumers want to feel protected and to have to worry about touching the clothes on their own body is the last thing anyone wants! I am sure the Shield collection, powered by HeiQ Viroblock will contribute to resuming our normal lives earlier and with much higher confidence,” said Carlo Centonze, co-founder and CEO of HeiQ Group. Raymond UCO, a formidable player in the global denim industry, is reckoned as one of the most versatile, flexible and fully vertical denim fabric manufacturers. “Shield is a versatile range of ‘fashion with function’ denim fabrics that aims to offer endconsumers best-in-class antimicrobial and anti-viral denims. In these unprecedented times of worldwide pandemic, apparel for everyday use that protect users from viruses & bacteria have become vital. It is in this context, we have developed environment-friendly, anti-viral denim fabrics with our innovation partner HeiQ that will enable us to not only excite fashion lovers but also assure the end consumers with ultimate clothing solutions for health and hygiene,” said Arvind Mathur, CEO- Raymond UCO Denim. Raymond UCO Denim Private Limited is a leading manufacturer of premium denim with focus on innovation and quality. The fabric offerings include premium 100 per cent cotton denim, stretch denim, denim with exotic blends, denim with special finishes and performance denim. Raymond UCO has an annual global manufacturing capacity of upto 43 million metres of denim fabric. The fabric plant in India is spread over 169 acres and is strategically located in the heart of Central India’s cotton belt – Yavatmal in Maharashtra (India). Since 1996, the company is committed to delivering best-in-class quality, service, innovation and sustainable value additions in denim. Founded in 2005 as a spin-off from the Swiss Federal Institute of Technology Zurich (ETH), HeiQ is a leader in textile innovation creating some of the most effective, durable and highperformance textile technologies on the market today. HeiQ’s purpose is to improve the lives of billions of people by perfecting an everyday product: Textiles. Combining three areas of expertise – scientific research, specialty materials manufacturing and consumer ingredient branding – HeiQ is the ideal innovation partner to create differentiating and sustainable textile products and capture the added value at the point of sale. With a total capacity of 35’000 tons per year HeiQ manufactures in the US, Switzerland and Australia supplying its specialty chemical products in over 60 countries worldwide.

Source: Fibre2Fashion

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Global Textile Raw Material Price 07-08-2020

Item

Price

Unit

Fluctuation

Date

PSF

776.29

USD/Ton

0.84%

07-08-2020

VSF

1194.29

USD/Ton

0%

07-08-2020

ASF

1699.34

USD/Ton

0%

07-08-2020

Polyester    POY

743.91

USD/Ton

1.57%

07-08-2020

Nylon    FDY

1942.52

USD/Ton

-0.37%

07-08-2020

40D    Spandex

4000.14

USD/Ton

0%

07-08-2020

Nylon    POY

920.90

USD/Ton

1.59%

07-08-2020

Acrylic    Top 3D

2158.35

USD/Ton

0%

07-08-2020

Polyester    FDY

5180.04

USD/Ton

0%

07-08-2020

Nylon    DTY

949.67

USD/Ton

0.76%

07-08-2020

Viscose    Long Filament

1798.63

USD/Ton

0.81%

07-08-2020

Polyester    DTY

1870.57

USD/Ton

0%

07-08-2020

30S    Spun Rayon Yarn

1676.32

USD/Ton

-0.51%

07-08-2020

32S    Polyester Yarn

1323.79

USD/Ton

0%

07-08-2020

45S T/C    Yarn

2165.54

USD/Ton

0%

07-08-2020

40S    Rayon Yarn

1496.46

USD/Ton

0%

07-08-2020

T/R    Yarn 65/35 32S

2043.24

USD/Ton

0%

07-08-2020

45S    Polyester Yarn

1841.79

USD/Ton

0%

07-08-2020

T/C    Yarn 65/35 32S

1669.12

USD/Ton

0%

07-08-2020

10S    Denim Fabric

1.14

USD/Meter

0%

07-08-2020

32S    Twill Fabric

0.64

USD/Meter

0%

07-08-2020

40S    Combed Poplin

0.93

USD/Meter

0%

07-08-2020

30S    Rayon Fabric

0.47

USD/Meter

0%

07-08-2020

45S    T/C Fabric

0.65

USD/Meter

0%

07-08-2020

Source: Global Textiles

Note: The above prices are Chinese Price (1 CNY = 0.14389 USD dtd. 07/08/2020). 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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EU retail trade back to pre-pandemic levels

Eurostat, the European Union's statistics agency, said on Wednesday that in June the bloc's retail sale regained 99.7 percent of the volume that it had reached in February before the outbreak of the COVID-19 pandemic. The seasonally-adjusted volume of retail trade increased by 5.7 percent in the euro area in June and by 5.2 percent in the EU compared with the previous month. Eurostat also revised its earlier estimate of the retail trade volume to 20.3 percent increase in the euro area and 18.3 percent increase in the EU in May. In March and April, when most of the prevention measures were taken in the EU member states, all non-food product groups showed exceptionally big decreases, in particular the decline for textiles, clothes and footwear was extremely steep. The two months loss for automotive fuel was 43.4 percent, for computers, books and similar products it was 40.7 percent, and for electrical goods and furniture, 34.5 percent, said Eurostat. When the containment measures began to be eased in May, sales for all non-food product groups picked up. With the next increases of sales in June, the pre-crisis level of sales was regained or even exceeded for some product groups. Sales of textiles, clothing and footwear grew by 20.5 percent month-on-month in June in the EU, after a record 130.7 percent jump in May. Consumers also bought more car fuel, computer equipment and medical goods.

Source: Xinhua

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Cambodia Issues Additional Support for Workers and to Revive Economy

On July 31, 2020, Cambodia’s government issued its fifth stimulus package as it aims to mitigate the economic impact caused by the COVID-19 pandemic. This latest round of measures is aimed at enhancing the previous stimulus packages and supporting the country’s most important industries – garment and textiles manufacturing and tourism. Cambodia’s apparel manufacturing sector accounts for some 80 percent of total exports and more than 16 percent of total GDP whereas the tourism industry contributes to some 12 percent of GDP. The onset of the coronavirus pandemic has caused around 200 apparel factories to suspend or shutdown their operations, impacting more than 150,000 workers, with 45,000 workers in the tourist sector unemployed as of May 2020. Extended support for private-sector employees Under the fifth stimulus package, the government has extended its financial support for private sector employees, in particular, those in the garment, textiles, and footwear industries. Introduced under the previous stimulus package, companies who want to suspend employment contracts must first submit an application to the Ministry of Labor and Vocational Training (MLVT). The suspended employees are then eligible to receive monthly subsidies. This program has now been extended through the latest economic package until September 2020.

Suspended employees are entitled to the following monthly subsidies:

· US$15 for 7-10 days of employment suspension; · US$30 for 11-20 days of employment suspension; and · US$40 for 21 days to one month of employment suspension. The funds will be transferred 10 days after the date of suspension. Garment companies who are suspending their employees must also provide allowances in the sum of the following: · US$10 for 7-10 days of employment suspension; · US$20 for 11-20 days of employment suspension; and · US$30 for 21 days to one month of employment suspension. Suspended employees from the tourism sector will be eligible to receive US$30 until September 2020.

Enhanced support for the tourism industry

 In addition to the monthly subsidies received by suspended employees, hotels, guesthouses, restaurants, and travel agents in the cities of Phnom Penh, Siem Reap, Sihanoukville, Kep, Kampot, and Bavet, will be exempted from paying tax until the end of September 2020; this incentive was originally available until July 2020. Other measures aimed at boosting the economy The World Bank has predicted that Cambodia’s economy will shrink between one to 2.9 percent in 2020 due to the coronavirus. To mitigate this impact, the government has sought to ease doing business in the country through regulatory reforms. The General Department of Customs and Excise (GDCE), for instance, will be more efficient in facilitating the import of raw materials and parts used for garment and textiles production and the government has suspended the four percent stamp duty tax on the transfer of residential properties from February 2020 to January 2021. Further, the Ministry of Economic and Finance has provided some US$200 million for the Credit Guarantee Fund in June 2020 to help businesses gain access to financing. Interest rates for working capital loans have also been lowered from six to five percent and from 6.5 to 5.5 percent on loans for investment capital.

Source: ASEAN Briefing

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Three US textile companies join forces to manufacture PPE

Faced with a global pandemic and massive personal protective equipment (PPE) shortages in the United States, three large textile companies, Merrow Manufacturing, ColorWorks and Bolger & O’Hearn, each strong in its own niche, have banded together quickly this spring to help fill America's explosive demand for personal protective equipment (PPE). "The result of this partnership was a fast response to PPE needs and an ongoing relationship that promises to help the country continue to meet growing demand for PPE across multiple sectors of the economy as we continue to fight the Covid-19 pandemic," three partnerning companies said in a joint press release. Merrow Manufacturing is a massive, high-tech cut and sew operation based in Fall River, typically used by fashion and textile brands to make hard and soft textile goods. Bolger & O’Hearn, also based in Fall River, provided the high-powered durable water repellents designed to repel oil, water and blood when applied to PPE fabrics, as well as other textile chemistries needed to meet ASTM requirements for Levels 1, 2, and 3 for medical PPE. A bluesign system partner, B&O is also known for developing chemical products based on environmentally-compliant materials and technologies. ColorWorks, which is located in Elizabethton, took charge of the dyeing and finishing of millions of yards of fabric used to make the PPE. “OSI has a long history working with both Bolger & O’Hearn and Merrow,” Bryan Boulis, president of OSI, said in a press release. “ColorWorks relies heavily on the support of the R&D talent at Bolger. In March of this year I reached out to Charlie Merrow (CEO of Merrow Manufacturing) in regard to his efforts to fill the PPE void both locally and throughout North America. Charlie presented his specifications and my team immediately reached out to Bolger & O’Hearn. ColorWorks has used 100 percent Bolger & O’Hearn products on all of the woven products we shipped to Merrow,” Boulis said. In normal times, Merrow is a large domestic manufacturer of soft goods. Family owned, and in operation since the late 1800’s, Merrow invented the overlock stitch and its manufacturing floors in Fall River are typically humming with the sound of up to 500 sewing machines and a small army of high precision fabric cutters. “Bolger & O’Hearn is proud to be at the forefront of the effort to rebuild the US textile industry’s PPE supply chain, and support brands and mills throughout the US, by developing the chemistries that help them meet our country’s urgent demands for medical gowns, curtains, lab coats and other essential items of medical PPE,” Kelly Murphy, copresident of B&O, said.

Source: Fibre2Fashion

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