Textile value chain Vol 1, Issue 1


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Textile value chain Vol 1, Issue 1

  1. 1. THE VALUE CHAIN IN TEXTILES India’s Presence across the Value Chain India is one of the few countries which have a presence across the entire value chain of the Textile and Apparel Industry. Textile, a versatile basic necessity turns into a luxury brand having a long value chain, where some are direct actors of the chain and others are non value chain actors, which are also equally impor- tant. We will discuss both here in brief, later issues a broader spectrum. 2. Petrochemicals for Polymer fibers Value Chain Actors Petrochemical industry is relatively young - it did not start to take off until the 1940s. However, its origins go back to the 18th century when coal began to be minedINPUT SUPPLIERS and cheap energy became available. In the next cen- tury it was from gas works and coal tar could become1. Farmers (Natural fibers like Cotton, an important source of chemicals. In Britain and Ger- many new industries sprang up making dyes, solventsJute) and rubbers. Polymer fibers are a subset of man-madeFarmers are backbone of Agriculture industry, and tex- fibers, which are based on synthetic chemicals (oftentile base started by agriculture: Natural fibers derived from petrochemical sources) rather than arising fromfrom plant, crops, trees etc. natural materials by a purely physical process. TheseFarmer’s rights are protected through federation, fibers are made of phenol-formaldehyde (PF), polyvi-Government Organization, unions. In order to pursue nyl alcohol fiber (PVA) vinylon, polyvinyl chloride fiberalternative income, some farmers have been incorpo- (PVC) vinyon, polyolefins (PP and PE) olefin fiber, etc.rated into fair trade markets and others have adopted Easy-care clothing, carpets, curtains and furnishingorganic practices and become certified in order to sell fabrics are made from man-made fibres derived fromtheir product at higher prices. Other natural resourc- petrochemicals.es may also be used as inputs for weaving and otheractivities in the textile sub-sector, such as alternative 3. Industrial Cotton Ginningfibers (sisal, bamboo, wild silk, natural dyes, etc.), but Cotton Ginning factories and associations play impor-additional research is needed to provide recommen- tant role in textile and garment industry. While theydations for improved note that they are at capacity in terms of meeting ex-April - June 2012 6
  2. 2. THE VALUE CHAIN IN TEXTILESport demand, they express serious concern regarding looms are produced locally, and located outdoors tolosses when selling at world commodity prices. accommodate the length of the traditional warp. Pro-4. Small-Scale Cotton Ginning/ duction is therefore weather-dependent and limited by the season. Informal weavers traditionally provideSpinning for the needs of special events and do not extend theirA very limited number of processors are engaged in efforts to markets outside and do not see a need tospinning cotton on a traditional cottage-industry basis. educate customers or invest in marketing activities.Few businesses have performed small-scale experi- However this demand is declining as more optionsments in sourcing handspun yarn, developed vertically become available in modern markets. Several weav-integrated operations that include the processing of ing enterprises and associations have formalized theircotton, through to the finished value-added product processes, and their workshop sites to provide morewith labor-intensive processes and with relatively regular working conditions and consistent quality con-low capital investments. This activity found venue for trol. Most looms continue to be an evolved version ofincreasing income in rural areas and implementing pit-looms, although floor looms have been adopted byappropriate technology practices. Many weavers ex- few workshops, and some workshops have incorpo-pressed interest in being able to source raw materials rated fly-shuttle handlooms to increase productivity.directly from processors, particularly if it allowed them Many workshops also convert the hand-woven fabricmore choices in terms of dyes or fiber content (organic into home and fashion accessories, including an abun-and/ or fair trade, etc.). dance of handbags and tabletop items.5. Industrial Spinning Several weavers expressed interest in developing hori-Manufacturers of yarn sell their products both to dis- zontal linkages to increase capacity in order to respondtributors and weaving workshops in cases where a long- to larger orders and to buy inputs in bulk to reduceterm purchasing agreement has been established. Due costs, but it is unclear if there is sufficient demandto the ever-increasing pricing pressures imposed on for such arrangements and if workshops can maintainimported goods, Government has invested in a range consistent quality standards. Weaving studios sell theirof diversified income-generating activities in order to fabric to others for incorporation into leather trimmedsupport their cash flow. These include: screen-printing products or finished home accessories or finish prod-(on imported apparel), weaving mops from waste fi- uct collections themselves for on-site retail shops orbers, importing synthetic thread, etc. They have also retail buyers.invested in direct marketing to end-users, employing TEXTILE MANUFACTURE / PRODUCERtheir marketing team to promote their products di-rectly to the weaving community. While serving as a / CONVERTERsurvival technique, these activities are not necessarily Manufacturer include various Leading Actors and ac-in the best long-term interest of the company because tivities, including: formal and informal micro, small andthey do not build on inherent strengths or comparative medium-size enterprises, Corporate, independent de-advantage, and are not able to achieve efficiencies due signers, cooperatives, and nonprofit associations. Thisto insufficient domestic market demand. part of the value chain encompasses the processes of adding value to, or transforming unconverted fabric6. Importers/Vendors (e.g. dyed or woven cloth) finished/converted textileImporters and local retailers provide an essential sup- products (apparel, fashion accessories, upholsteredply of goods to the sub-sector which includes dyes furniture, etc.) to final end-users. While some actors(for yarn and imported fabrics), fabric (basin/jacquard hold distinct positions along the value chain (such asweaves, commercial cloth for apparel, wax prints, informal weavers, small dyeing units used as subcon-etc.), yarn and thread, tools and equipment, and no- tractors), many operations often driven by design havetions (manufactured zippers, clasps, etc. for finishing). incorporated embedded services into their internal op-There are no protective measures supporting the price erations, covering multiple functions in the chain ‘un-of finished goods from local firms. der one roof’. Examples include fashion designers who integrate weaving, printing, and pattern-making intoWEAVERS their workshop for prêt-a-porter apparel, and interiorMajority of the weavers are engaged in their work ei- designer-weavers who have established vertically-inte-ther informally or with the backing of many more ad- grated production that includes custom dyeing yarn,ditional participants. Weaving activities may not be furniture framing for upholstered goods, all the way toacknowledged by the statistics due to seasonal em- direct retail sales, as part of their businesses. Many ofployment, migration, and informal employment. Many these businesses are owned and operated by womenApril - June 2012 7
  3. 3. THE VALUE CHAIN IN TEXTILESwho have established national and international repu- developing countries. These direct export operationstations for their work. may be due to conditions that leave no room for theTEXTILE TREATMENT ACTORS cost of agents, which typically average an additionalTextile treatment includes chemicals, dyes, batik, print- 5-15%.ing etc.A number associations, SME companies are in- AGENTS/SHIPPERSvolved in treating predominantly imported fabrics, in- They are intermediaries commonly known as “Transi-cluding such practices as dyeing and hand calendering taires” who play an essential role in export, processingbasin/jacquard textiles for local formal apparel such as export forms and clearing shipments through Customs,resist dyeing (tie-up and batik) or embroidering fabric Many exporting producers acknowledge indiscerniblefor fashion and home accessories, crochet, and screen- and complicated logistics (e.g. related to Customs),printing for local consumption and high-fashion. These and the cost of some of these transactions (formal andbusinesses many times sell their material to tailors, informal), but accept the procedures and the interme-while fashion studios often maintain internal dyeing diary as a necessary part of the export.processes or subcontract for custom orders. IMPORTERSDESIGNER-ENTREPRENEURS Importers of textile products have proactively soughtIndian designers working in high fashion, home décor, to flatten the distribution chain by bringing items di-and fashion accessories, play an essential role in tex- rect to retail due to the FOB costs of finished goods.tile sub-sector, linking market demands to production These importers often provide embedded services toand international design sensibilities. Most designers designers and producers by guiding new product de-manage their own boutiques and maintain proprietary velopment, providing trend and market information,workshops with in-house production capacity in weav- and assisting with shipping logistics. Many invest ining and other material treatment processes (tailoring, sourcing visits in order to make product selections anddyeing, embroidery, etc.) with established agreements merchandising suggestions directly.for specific outsourcing needs. They are heavily en-gaged in the promotion of Indian design and the de-velopment of their industries, and have established Non Value Chain Actorsseveral noteworthy venues such as fashion reviews Government:and participated in international exhibitions. Government plays major role in development in anyMARKET PLAYERS industry. Especially whole textile is more semi govern- ment industry. Government policy related to textileWholesalers/Retailers and garment is not only earn foreign income abut giveAt first glance the market is dispersed and divided. employment to large population. But industry is notTraditional Wholesalers have many clusters across In- happy with movement of Govt. policy in textile, as perdia Eg. M.J. Market in Mumbai. Recently Organized industry view: proper education, resources, researchWholesalers presence in India due to FDI interest in this and development is not properly focused in the sectorsegment eg. Metro Cash and Carry. , Retailers have 2 as compare to other sectors.segments, Traditional retailers and Organized Retailerwhich flourished from last decades. eg. Big Bazar. Most Educational Institutionrelationships along the textile value chain, wholesaler Educational institute’s plays major role in whole chain,and retailer functions overlap. Many producers retail as skilled labor is produced in educational factory. Sotheir own product lines directly and retailers who stock course content should be matched and updated witha variety of products (such as hotel shops) commonly industry requirement. Students to employee journeybuy direct from producers at ex-factory prices. require soft skills, technical knowledge, industry ex- posure, many more. This all needs will be fulfilled byExporters educational industry.Many producers export value-added products directlyto international clients Few independent exporters Associations/ Cooperatives/ NGOshave established their own international clientele and Institutional interests are several regional and nationalothers act as an arm of a foreign importer, providing forums beyond governmental agencies and chambers,embedded services to the value chain, such as prepar- including a national membership association Textileing orders for shipment, providing quality assurance activities are often supported through or implementedon location and prior to shipping, and implementing in collaboration with NGOs in efforts to improve eco-new designs requested by the buyer. Individuals also nomic conditions and employment opportunities inexport on a regular basis to world developed as well as India.April - June 2012 8
  4. 4. THE VALUE CHAIN IN TEXTILESInternational Institutions Infrastructure and ResourcesAid to textile industry, an international non-profit Transport, internet technology, and otherorganization, could not perform a comprehensive infrastructural resources impact the growth of thesurvey of all international programs operating in India textile sub-sector. Limited resources, such as packingwith plausible links to the artisan textile sector as part and packaging materials, apparel labels and a broadof this assessment. However, there appears to be selection of quality notions impose high costs andseveral initiatives offering services to the textile sector, compromise the quality of final products delivered tobut with a primary focus on apparel/fashion and buyers.industrial production. Other services are provided in Sector Organizationhuman resource development, internet and The textile sector has formal representation throughtechnology development, agriculture, natural resource the national association. However, the lack ofmanagement, cultural preservation and the arts, and coordination between textile value chain actors andcommunity development – there are possibilities for support services severely compromises thecollaboration within each of these focus areas. effectiveness of the sub-sector. Informal weavers have no formal representation even though they make upMacro Environment factors influencing for the majority of producers in the industry.Textile Industry Producers noted that minimal communication between actors, including raw material suppliers, was the causeThe infrastructure and conditions which comprise the for stagnation and even decline in the sub-sector.enabling environment in India provide both supportand constraints to economic growth. Capacity/Skills/Human Resources The textile sector represents a range of substantialEnergy human resources, including talented technicians,All actors along the value chain are affected by poor skilled designers, knowledgeable traders, andquality energy and weekly power cuts which dedicated service providers.dramatically increase their costs. Energy accounts for Tertiary Training – There is limited support in ourthe equivalent of 20% of total costs in production and tertiary system to guarantee the supply of traineddecreases their productivity and timely delivery. individuals in design and applied trades – many of theAlternative energy sources such as solar and leading entrepreneurs in the sector have obtained abio-diesel need to be not been developed sufficiently significant amount of their education in otherfor larger scale needs. countries.Legislation/Policy Language – Due to the innumerous Indian languages,Labor laws – More concern was voiced in regards to dealing with uneducated laborers, and little know-howthe difficulty of formal employment, required taxes of legal language, it is difficult to access broader and payments related to that process, and erratic markets.labour laws that forced enterprises to work more Private Sector Servicesinformally than they would choose. World Bank data Value chain actors noted the marked development ofsuggests that in relation to other countries, it is private sector services in recent years that support thedifficult, yet inexpensive, to license workers growth of their businesses, including graphic arts andExport/Import – Most value chain actors seemed technology providers. These services are the key to theambivalent about export processes and requirements development of commercially-viable solutions toand seemed to have found a way to work around some challenges in the textile sector.of the constraints related to bureaucratic proceduresand corrupt practices in import and export processes.Capital/Credit/FinancingEstablished medium-size businesses, as well as microenterprises, find it difficult to find appropriatefinancing for their business ventures. Interest rates arehigh and banks are resistant to extend credit to valuechain actors, even when they are formal companieswith decades of performance history. Manystakeholders also noted that if money is easilyobtainable for infrastructure investments, it wouldgreatly enhance their capacity.April - June 2012 9
  5. 5. FIBER Natural Fiber: The Beginning of Textiles COTTON Cotton is a soft, fluffy staple fiber that grows in a boll, Top 10 Cotton Producers: 2011 or protective capsule, around the seeds of cotton plants .The fiber is almost pure cellulose. The botanical (480 pound bale) purpose of cotton fiber is to aid in seed dispersal. The plant grows to tropical and subtropical regions, in-1. China: 33.0 million bales cluding the Americas, Africa, and India. The wild cotton species is found in Mexico, Australia and Africa2. India: 27.0 million bales The earliest known woven fabrics were those used as shrouds for the Egyptian mummies which were made around 5500 BC.3. USA: 18.0 million bales In India cotton is said to be used for over 5000 years. The fiber most often is spun into yarn or thread and4. Pakistan: 10.3 million bales used to make a soft, breathable textile. The use of cot- ton for fabric is known to date to prehistoric times;. In-5. Brazil: 9.3 million bales vention of the cotton gin lowered the cost of produc- tion that led to its widespread use, and it is the most6. Uzbekistan: 4.6 million bales widely used natural fibercloth in clothing today. Current estimates for world production are about 25 million tonnes annually, accounting for 2.5% of the7. Australia: 4.2 million bales world’s arable land. China is the world’s largest pro- ducer of cotton, but most of this is used domestically. 8. Turnkey: 2.8 million bales The United States has been the largest exporter for many years. 9. Turkmenistan: 1.6 million bales Our Mahatma Gandhi described the Process: 1. English people buy Indian cotton in the field, picked 10. Greecee: 1.4 million bales by Indian labor at seven cents a day, through an op tional monopoly. 2. This cotton is shipped on British ships, a three- The five leading cotton fiber exporters in 2011 week journey across the Indian Ocean, down the 1) U.S.A, Red Sea, across the Mediterranean, through Gibral 2) India, tar, across the Bay of Biscay and the Atlantic Ocean 3) Brazil, to London. One hundred per cent profit on this 4) Australia, freight is regarded as small.5) Uzbekistan. 3. The cotton is turned into cloth in Lancashire. You pay shilling wages instead of Indian pennies to your Largest Non producing Importer workers.The English worker not only has the ad Korea, Taiwan, Russia, Hong Kong and Japan vantage of better wages, but the steel companies of England get the profit of building the factories and machines. Wages; profits, all these are spent in In India, the states production of cotton is England.Maharashtra (26.63%), 4. The finished product is sent back to India at Euro Gujarat (17.96%) and pean shipping rates, once again on British ships. Andhra Pradesh (13.75%) The captains, officers, sailors of these ships, whose wages must be paid, are English. The only Indians who profit are a few lascars who do the dirty work on the boats for a few cents a day.April - June 2012 10
  6. 6. FIBER5. The cloth is finally sold back to the kings and • Current Scenario & Journey So Far: landlords of India who got the money to buy this With the increase in cotton availability the demand expensive cloth out of the poor peasants of India for better quality cotton fibres nearer to that of hand who worked at seven cents a day. ginned cotton in adequate quantity became the chal-• History of cotton lenge before the cotton ginning & pressing machineryAnimal skins and hides, and barks of some tree spe- manufacturers in India and the optimization of thecies were probably the earliest materials used by pre- process cost with higher outturn was necessitated tohistoric human beings to cover their bodies. face the intense competition.The earliest known woven fabrics were those used as The Indian Cotton Mills which use to accept cottonshrouds for the Egyptian mummies. These shrouds are with higher trash started demanding best qualityconsidered to be made around 5500 BC although some cotton, the smaller labour intensive ginning factoriesauthorities claim these were older (12000-10000 BC) started finding it difficult to achieve economyand made of linen. against composite ginning & pressing factories being• History of cotton in India setup under Technology Mission on Cotton andIn the past, ideas and details of events were passed on Technology Up-gradation Fund. This has thrown a fur-through generations orally ratherthan in writing. It is ther challenge before the Cotton Ginning &therefore difficult to pinpoint when the use of cotton Pressing Machinery Manufacturers to produce highbegan in India.Nevertheless, there is enough scientif- quality Cotton Ginning, Cleaning & Pressingic evidence to trace that cotton has been used in India Machinery in adequate quantities. M/s. Bajaj Steel In- for over 5000 ears. The speculations about the earliest dustries Limited geared up to meet theuse of fibres from cotton in the Indian subcontinent challenge and provided best solutions to meet com-were set at rest with the discovery of cotton materi- plete demand.als in the excavations at Mohenjodaroin the Indus Val- The selection of right machinery to achieve the highestley carried out during the 1920’s. In these excavations, cost efficiency with best fibre parameters andwell-preserved fabrics of cotton were discovered in sil- to standardize the cotton ginning & pressing technol-ver vessels Until the middle of the 18th century, only ogy was another challenge before the Indianindigenous arboreum and herbaceum varieties Cotton Ginning & Pressing Sector. Thus it was neces-of cotton were grown in different regions of the coun- sary to carefully compare the various optionstry. Due to the human skills and dexterity of the local available. In the selection of cotton ginning & pressingartisans, very fine yarns were produced by them, from machinery in Indiaeven theshort staple and coarse cottons grown in In- • The unique way of preservation of history ofdia. cotton The Cotton Museum,is set up at Memphis,• Introduction of Cotton production in India The In- Tennessee, U.S.which is an historical and cultural mu-dian cotton production was about 14 Million bales seum that opened in March 2006 on the former trad-around year 2000 and the same was termed ing floor of the Memphis Cotton Exchange at 65 Unionas most contaminated cotton in the world due to vari- Avenue in downtown Memphis. The mission of theous deficiencies in production but now Cotton Museum is to share the story of the cotton in-The increase in cotton production has been achieved dustry and its many influences on the daily life, arts,mainly due to following factors: and the development of the Mid-South region.1. Increase in area under cultivation of BT The museum highlights artifacts through interpretive Cotton Seed. exhibits, educational programs, and research archives2. Commensurate increase in required ginning that help tell the story of cotton and cotton trading, capacity with addition of cleaning capabilities. from crop to becoming fabric.3. Introduction of Technology Mission on Cotton The Cotton Museum preserves the history of the cot- and efforts by research agencies like CIRCOT. ton business and its impact on economics,history, soci-4. Government Policy of minimum support price. ety and culture, and science and technology. Out of the above four factors the Bajaj Steel The museum’s exhibits are appropriate for field trips Industries Limited Nagpur as largest and modern for middle schoolers and older, and provide visitors manufacturer of cotton ginning, pressing, delinting context for other attractions in the city. & decorticating and other cotton processing machinery has played a vital role to achieve the ranking..April - June 2012 11
  7. 7. COTTON GINNING JOB WORK UNECONOMICAL FOR MODERN GINNERIES? S. Ulaganathan, Director(EPQA) & Dr. K.R.K. Iyer, Consultant Textiles Committee, MumbaiI ntroduction: One of the most spectacular events in and lint cleaner should be of reasonable quality. A the Indian textile scenario in the first decade of the combination of pneumatic suction, belt conveyor and current century has been the modernization of gin- trolley system for kapas to be fed to each gin as wellning industry which, for many years had remained in as fully pneumatic conveyor for lint from ginning ma-a decadent state. The Technology Mission on Cotton chines to the on-line bale press are also presumed to(TMC), a subsidy scheme launched by the Govt. of In- be set up at the factory used in the analysis. The baledia in February, 2000 had a component referred to as press would be an auto-loading, auto-tramping, 2-boxMini Mission IV for modernization of ginneries through machine. There would be on-line moisturizing facilitywhich as many as 850 Ginning & Pressing (G&P) units through steam condensation system for lint and nozzlewere upgraded or newly set up till the scheme ended system for kapas. Seed conveyor and Weigh Bridge arein December 2010. Although this number fell short of also parts of essential components of a modern gin-the target of 1000 ginneries set by the Textile Ministry, nery. Civil structures will include, gin-press hall, openthe effort made by the Cotton Corporation of India, platforms for kapas, seed and pressed bales, bale go-the implementing agency for Mini Mission IV, has been down, fire fighting system comprising hydrants, wa-hailed as a veritable success, judging by the quantum ter tanks and pumps, CC road etc,. which are normallyjump in cotton quality acknowledged by consuming considered as essential components of a G&P unit. Inspinning mills. In the early years of TMC, the setting addition, a factory will also need office block, labourup of a new G&P unit was accepted as an economi- quarters and boundary wall for proper functioning ofcally viable proposition. Machinery costs were low, the establishment.civil construction costs were moderate and labour was b) Labour and Electricity Expenses:cheap and easily available. Electricity cost was also Since the factory considered here is one with auto-reasonable. A ginnery of average level of technology matic conveyor systems and on-line automatic balingwith a production capacity of 100 bales per day could press, the labour involvement is minimal. With just 21be set up on an available land with an investment of labourers, including skilled and unskilled ones work-Rs.150 lakh. With TMC’s capital subsidy of Rs.27 laklh, ing during each shift for a wage of Rs.150/-, the labourthe nett investment was just Rs.123 lakh which could cost per bale comes to Rs.50.fetch a reasonable profit for a factory owner even if he The total electric power of ginning machines (90 HP),did only job-work for cotton traders. The profit margin conveyor systems (140 HP) and baling press (70 HP) inwas predictably much more if the ginner chose to do the unit is 300 HP. Electricity cost works out to Rs.104trading in cotton by purchasing kapas, gining it in his per bale which has 3 components namely cost of gin-own factory and selling the bales to spinning mills or ning (Rs.38 per bale), cost of conveyance (Rs.55 perto other traders. Today, 12 years after the launch of bale) and cost of pressing (Rs.11 per bale). A powerTMC, many things have changed. Ginning machinery cost at the rate of Rs.6 per unit (KWH) has been as-costs have escalated. So have civil construction costs. sumed for the calculations.Wages too are far more than what they used to be ten c) Total Processing Cost per Bale:years ago. Electricity bills are also higher. Despite a Other expenses include bale covering cloth (Rs.35 persignificant increase in processing charges for each bale bale), plastic straps (Rs.35 per bale), machinery main-received by the job-working ginner, he is unable to tenance (Rs.20 per bale), lubricants (Rs.10 per bale)make a reasonable nett profit. Even with the subsidy and miscellaneous overheads (Rs.20 per bale). Withof Rs.50 lakh offered under the NABARD Scheme, in- contribution from all these components, the process-vestment in a ginning unit solely for job work is not ing expenses totals up to Rs.274 per bale which alsoeconomically viable. This article is an attempt to work includes labour and electricity costs against the job-out the current cost burden the investor has to bear work rate of Rs.700 per bale received by the ginnerwhile setting up the G&P unit and the recurring expen- from traders or spinning mills for whom the ginneryditure he has to incur. It is shown that high-investment undertakes ginning and pressing work.ginneries cannot survive through job work alone. d) Annual Cost of Capital Investment:Economics of a Standard Ginnery (100 bales per day) Capital cost of investment in the ginnery involves ma-a) Capital Investment: A ginnery with 18 Jumbo DRs chinery and civil structural components. For the fac-which can produce lint equivalent to about 8 bales in tory considered for discussion, these are Rs.240 lakhan hour, accepted by TMC as a standard unit, is consid- and Rs.130 lakh respectively, totaling upto Rs.370 lakhered here for working out the economics. Pre-cleaner of gross capital investment (Table 1). Let’s assume thatApril - June 2012 12
  8. 8. COTTON GINNINGthe factory is entitled to receive a subsidy of Rs.50 lakh structures etc.such as the one dispensed by NABARD. The nett in- How Traders and Trading Orgnizations Can Help:vestment would then come down to Rs.320 lakh. If Job work charges per bale should be linked to theinterest on borrowings is taken as 13% and, assuming technical features of the ginnery such as the qualitya depreciation of 12%, the annual recurring cost of the of machines, degree of automation, and excellence ofnett investment of Rs.320 lakh will work out to Rs.80 civil infrastructure. Differential job-work rates will belakh. justified inasmuch as the level of modernization of thee) Returns from Job Work at the Ginnery: factory will directly impact on the quality of baled cot-If the factory is dedicated to job-work and is process- ton. It will be equally appropriate for a good factory toing traders’ cotton, the factory owner would receive demand higher processing rate. It will be also benefi-Rs.700 per bale, at today’s prevailing rates. The fac- cial for the traders and trading organizations like CCI totory’s annual turn-over and net profit will depend on pay more and get their cotton processed in a factory ofthe number of bales processed in a season. superior level of modernization. Ginners’ associationsThree cases are considered here namely 15,000, 20,000 and trade organizations should come together for an& 25,000 bales processed in the unit, in a season (Oc- introspective discussion on this matter.tober to April). The income at the rate of Rs.700 per Star Rating of Ginneries:bale is to be matched against the sum of processing A mention of Textiles Committee’s Star Rating Schemecost (Rs.274 per bale) and the capital cost (Rs.80 lakh for G&P units becomes relevant here. Ratings rang-per annum). The nett profit has been shown in ing from “Single Star” to “Five Star” assigned by Tex-It is obvious from the data in Table 2. that the factory tiles Committee to modernized ginneries will reflectwill earn a reasonable profit (Rs.26.50 lakh), only if it the technical excellence of the G&P factory and wouldprocesses 25,000 bales. At 20,000 bales, it will just serve as a measure of the quality of cotton bales thatbreak even. If the bales are fewer, the factory will lose could emerge from the unit. The rating scheme is be-heavily. On the other hand, if over 25,000 bales are coming popular among the ginners, spinners and theturned out, the profit margin can be quite attractive. trading community.But it is very unlikely that a factory could manage to Already about 400 units have been assigned star rat-get such large job-work contracts in a season. ings. Many others are in the process of being assessed.Can Ginning be Made Remunerative? By the end of this current season, over 500 units wouldIn the wider national interest of providing quality cot- have been rated. Both cotton traders and spinnington to textile mills, it is essential that ginning is viewed mills stand to benefit a good deal by making use of theas a sector deserving support from the Government. information on rated units available on Textiles Com-Subsidies through fresh schemes on the lines of TMC mittee’s Website. The differential ginning-pressing ratewith a threshold of Rs.50 lakh, tax holiday, exempting for job work discussed in the last paragraph should beginning machinery from Excise Duty liability etc. would appropriately fixed in on the basis of the star ratingmake investment in ginning an economically meaning- accorded to each unit.ful proposition. Summary & Conclusions:Alternatives Before the Ginner: i) At current rates, the cost of processing a bale ofDiscussions above tend to suggest that job-work would cotton in a modernized ginnery works out to Rs.274/-.not bring significant returns from investment in a G&P ii) An investment of Rs.370 lakhs on a ginnery of aunit. Two options are available for the factory owner: high level of technology even with a subsidy of Rs.50i) Be a cotton trader besides being a ginner. lakh would translate into annual cost of Rs.80 lakh to-ii) Restrict the size of investment by opting for a lower wards interest and depreciation.level of technology for the machinery. iii) With current ginning charges set at Rs.700/- perTo begin with, a factory owner could earmark 50% of bale, a job working ginnery will make no profit eventhe days for job-work while the remaining days could with 20,000 bales processed in one season.be used for ginning his own cotton. Of course, raising iv) Only if the ginnery processes 25,000 bales or moreworking capital, understanding the nitty-gritty of seed will it earn reasonable returns from the investment.cotton purchase, and learning the nuances of market- v) Generous Govt. subsidies on the lines of TMC, ex-ing bales would be formidable challenges for a new cise duty exemption for ginning machines, tax holidays,entrant. For the second option of reducing the size fixing ginning-pressing rates in relation to Star Ratingof capital investment, the ginner will have to content status of G&P units, etc. are steps that will (a) enablewith belt conveyors for lint as well as kapas, nozzle a job-working ginnery to make profit and (b) providespray system instead of steam system for moisturizing impetus to sustained investment in the ginning sector.lint, semi-automatic bale press, minimal size for civilApril - June 2012 13
  9. 9. COTTON GINNING TEXTILE Value Chain Table 1: Capital Investment for an Automatic G&P FactoryApril - June 2012 14
  10. 10. COTTON GINNING Table 2: Economics of a Modern G& P UnitTo feel more Cotton go through following website…• International cotton association : http://www.ica-ltd.org• National cotton councils of America http://www.cotton.org• Cotton corporation of India http://cotcorp.gov.in• China Cotton association http://www.acfsmc.cn• Sustainable Cotton Project http://www.sustainablecotton.org• Cotton Marketing Directory : Cotton on net : http://www.cotton-net.com/• Central institutes of Cotton research http://www.cicr.org.in/• The Cotton Museum http://www.memphiscottonmuseum.org/• International Cotton Advisory Committee : http://icac.org/• Cotton Association of India : http://www.caionline.in• CRN INDIA http://www.crnindia.com• The cotton tradeindia http://www.cottontradeindia.com/• Cotton Outlook http://www.cotlook.com/April - June 2012 15
  11. 11. INTERVIEW WITH GINNERE xclusive Interview given by Mr. Divyesh M.D of KUTCH GINNING AND SPINNING PVT. LTD. We had asked few questions about Textile industry and Associated with the industry. He explain the process of Ginning Value chainSeed Cotton Drying and Cleaning Ginning Cleaning/Packing Transport AdminInput resources are: Material, Labor, Electricity, Maintenance parts, Equipments.Mr. Divyesh Expressed his view about growth path and GDP of Indian Textileindustry. “Government Lacks due to nonreserve fund of textile industry. Industrylacks due to less margin of business.”Where is your company stand in entire Value chain? Why is Textile industry soWe are ginner. We purchase raw material, seed cotton fragmented or Unorganized?from farmer, process it mechanically. India has two major states Maharashtra and GujaratWhat will be the growth of Textile industry according where farmer grow the maximum cotton in their farms.to you in terms of Opportunities, Revenues, Exports, Ginning units is established near seed cotton growingForeign investments etc? area. But most of spinning mills located in north andIndustries growth is good. Because now a days due to south part of India, but some mills only doing Part pro-awareness and increase the financial capacity of the cessing like few doing spinning, few doing knitting, fewpeople, they pay more on cloths and other cotton ac- doing weaving etc but it is very difficult to find the fullcessories. In our ginning industries foreign investment process of Textile mills because of heavy investment,till today is Nil. The Scope of Exports is too good be- uncertain market, government interference and short-cause we are the second largest in big raw cotton ex- age of labors and electricity. That is why the Textile in-porter country after USA. dustry so unorganized. Why there is gap between Organized and unorga- nized sector? Specially Textile industry have huge investment be- cause it is agriculture based industry, crop come once in a year, that is why all processor of Textile industries like ginning and knitting and have to store raw materials as per the season and to process after it. Price fluctua- tion during this process has to bear by the processor. Where in organized industries all channel are continuous, they set constant margin, less blockage money etc. Do you feel the Gap between Textile industry and Textile Education Industry? If yes why? Not Really in my industry. But yes, when we go up in a lad- der of value chain we have a Gap. How we can reduce or mini- mize the gap between the two (Industry and Educa- tion)? To established new textile colleges. To start some private training center and institute. Aware the student with industries like regular visit, some project work, Training, Good compensation from industry to attract student to join this industry.April - June 2012 16
  12. 12. INTERVIEW WITH GINNERTextile industry is in need of People and its Traditional Government and Manufacturer are important aspectsindustry, but Education colleges are not focusing and of value chain. In which area both lacks in growthdeveloping as an organized way as compare to other path of industry and education?courses offered in India? Government lacks due to non- reserve fund of textileYes definitely, Government needs to take some steps industry. Industry lacks due to less margin of business.for that like,Grant some subsides to students and col- Textile is old, 2nd rank industry after Agriculture butleges to join and start the courses. Also give assurance still in terms of Exports still we are not having leadingand job guarantee. Textile industries also do campus position in World? What is the Reason?visit and arrange campus interviews and bind them for Due to government policies as compared to othera job. countries and having less support of Government weCurrent market where Management Institutes flour- are not having leading position in World. Solutions forishing in country, but very less Organized Textile Tech- Textile industries is that government should give somenical Training institutes is there? Does industry do not subsidy in export, established plant ,bank facility etc.require technical people or have less demand /sup- as compare to other country textile industries, thenply? only we stand at a international level, otherwise todayEach and every industry requires skilled and active we are seeing situation which will be more worse inpeople who work smartly. Most of the workers and en- the future.gineers come to this industry with different knowledge; We had seen ginner’s mix reaction about the industry.they learn and gain work experience. But our industry We really have to push up our socks for this industry todidn’t give high salary to people who working due to grow, make Worlds and India’s best industry to workuncertain margin in this industry as compare to other with. Only cursing Government will not help, need toindustry. After experience, most People leave this in- take involvement actively in the industry.dustry and switch over to other industry. That is whyless institutes of textile due to less interest as terms ofmonetary, Unorganized Culture, many more.April - June 2012 17
  13. 13. COTTON AT COMMODITY MARKETCotton now at Commodity Market 3. Daily marking to market of positions minimizes risk C otton is one of the major Cash Crop of India. Be- of default by trade participants ing a fiber crop, it is primarily used as a raw mate- 4. Foremost, presence of a central counterparty for rial for textile industry(55-60% of requirements). an exchange traded futures contract ensuresBecause of its wide scale of usage, it happens to be performance of the contract obligationone of the most traded commodities in the World. 5. With an average daily trading volume of around`India invariably ranks 2nd/ 3rd in terms of produc- 100 Crores (or 5000 contracts), and an opention, and is also the 2nd largest exporter in the world. interest of around 8000 lots, NCDEX KapasHence, Indian prices depend not only on domestic, but happens to be the benchmark and only liquidalso international demand & supply scenario, and are futures contract of Cotton in India today.interlinked with global prices How Hedging is done? - An exampleVOLATILITY IN COTTON PRICES A Ginner needs to procure 50,000 MT of Raw Cotton,Cotton prices are known to be extremely volatile, with sometime in the end of Dec, as per his production16.6% average annualized volatility observed in do- schedule.He intends to produce lint and further sell itmestic markets, and 30.6% in international markets. to the Textile Mills, with whom he has a contract at aPrices of raw cotton for the season 2010-11, jumped pre-agreed price. Now, if the prices of Raw Cotton rise142% to ` 6,900 a quintal from a year ago in early Feb- in the month of Dec, his profit margins might shrink, orruary due to short global he may even run into losses. He can reduce this Pricesupply despite record domestic produce of 325 lakh Risk, by means of hedging his Raw Material require-bales of 170 kg each. Prices remained at elevated level ment, at NCDEX platform.through April, post which it moved to a downward spi- Let us assume that, on current date, the Ginnerral bottoming out to 3,300 per quintal by June, due to finds that:export restrictions imposed by Govt., and absence of Spot Price of Shankar Kapas =1100.00/ 20 Kgs Decoff take from the market Futures Contract on NCDEX = ` 1400.00/ 20 KgsNEED FOR PRICE RISK MANAGEMENT HEDGING He buys the Dec expiry contract at NCDEX on currentHigh spot price volatility, both in domestic and interna- date. On 30th Dec (i.e. on the day of expiry of contract),tional markets, poses enormous amount of price risk 2 cases may arise:to all the categories of participant involved in the value Case 1: Spot price increases to 1450.00chain of this broad commodity, be it Ginners, Spinners, On final settlement, MTM Profit = 50.00Textile Mills, Exporters, or Traders. In 2010-11, when Buying Price = 1450.00 Effective price =prices moved bylarge multiples bothways, registering 1450.00 - 50.00 = 1400.00a volatility of 23%, itintensified the risk of losses to all Case 2: Spot price decreases to 1350.00the value chain participants. Result, as we all know, On final settlement, MTM Loss = 50.00were huge losses suffered by trade, coupled with a re- Buying Price = 1350.00cord number of defaults on bilateral contracts in the Effective price = 1350.00 + 50.00 = 1400.00physical market. As per press reports, total disputes Therefore, irrespective of the Spot Price movement,quintupled to 10% of total cotton contracts globally. his Effective Purchase Price, and hence his Profit This makes a case for an appropriate instrument to Margin, remains locked-in. This is called Hedging.mitigate price risk. Futures contracts in Cotton, as of- Why Hedging is NOT same as Speculation or fered by NCDEX, are aimed to fulfill this need of the Gambling? Hedging, Speculation & Gambling are threetrade participants. different things. Gambling is when you yourself createCOTTON FUTURE CONTRACT a risk that didn’t exist in its own, like betting your Commodity exchange which offers trading in 25 odd money on a game of cards. Speculation on the otheragricultural commodities, with a cumulative average hand, is taking up an existing risk (not creating one),daily trading volume of more than 6,000 Crores. It of- with the intent to benefit from it, like taking on fers futures trading in Kalyan Kapas (V797) and Shan- market risk in order to benefit from price movements.kar Kapas varieties of cotton. And Hedging is a transaction to reduce the exposure to1. Futures trading would help all the value chain any market risk, so that one can focus on core business participants to effectively hedge their price risk by activities. allowing the opportunity to take positions in advance so as to counter the unexpected adverse “Hedging is definitely NOT Speculation, price movement. but NOT Hedging can be Speculation”2. Additionally, the futures contracts allow for efficient risk management by allowing high leverage Reference: www.ncdex.com This means that you need to pay only a small fraction of the value of contract as ‘margin’ to execute a trade.April - June 2012 18
  14. 14. FLAX FIBER Description Linen (flax fabric) is made from 100% natural flax fi- bers. This fiber is one of the oldest used in textiles for the home & clothing. Linen is a fiber, having length from 25-150cm and average 12-16 micrometers in diameters. it has two verities (1) shorter tow fibers, used for coarser fabrics and (2) longer line fibers, used for finer fabrics. The construction of the flax fibre is a hollow cylinder, called the lumen. History Linen has been used from past 20th century; a linen handkerchief was a standard decoration of a well- dressed man’s suit during most of the first part of the 20th century. in the past, linen was also used for books. Due to its strength, in the Middle Ages linen was used for shields and gambeson, much as in classical antiqui- ty it was used to make a type of body armour, referred to as a linothorax. (Also because of its strength when wet) Irish is a very popular wrap of pool/billiard cues, due to its absorption of sweat from hands. Properties 1. Linen fabric feels cool to the touch. It is smooth, making the finished fabric lint free, and gets softer the more it is washed. 2. Linen fabrics have a high natural luster; their natural color ranges between shades of ivory, ecru, tan, or grey. The color of natural flax linen ranges from cream to brown. Pure white linen is created by heavy bleaching. 3. It is a very durable, strong fabric, and one of the few that are stronger wet than dry. The fibers do not stretch and are resistant to damage from abrasion.. 4. Linen is relatively easy to take care of, it can be dry cleaned, machine washed or steamed. It can withstand high temperatures, and has only moderate initial shrinkage. 5. This fabric is crisp and starchy, becoming softer over time. 6. The appearance can range from matt to luster. Applications 1. Over the past 30 years the end use for linen has changed dramatically. Approximately 70% of linen production in the 1990`s was for apparel textiles, whereas in the 1970s only about 5% was used for fashion fabrics. 2. Linen uses range from bed and bath fabrics (tablecloths, dish towels, bed sheets, etc.), home and commercial furnishing items (wallpaper/wall coverings, upholstery, window treatments, etc.), apparel items (suits, dresses, skirts, shirts, etc.), to industrial products (luggage, canvases, sewing thread, etc.)..April - June 2012 19
  15. 15. FLAX FIBER3. Paper made of linen can be very strong and crisp, which is why the United States and many other countries print their currency on paper that is made from 25% linen and 75% cotton.4. Currently researchers are working on a cotton/ flax blend to create new yarns which will improve the feel of denim during hot and humid weather5. Linen fabric is one of the preferred traditional supports for oil painting. In the United States cotton is popularly used instead, as linen is more expensive than cotton, so now linen is more limited to European painters. Linen is preferred to cotton for its strength, durability and archival integrity. via, the Netherlands, Italy, Spain, Switzerland, BritainAdvantages , Canada and Kochi in India. High quality linen fabrics• Natural antibacterial & antifungal properties. are now produced in the United States for the uphol-• Protection from UV rays. stery market.• Excellent anti allergenic characteristics.• Excellent anti static characteristics. Renewable• Will not attract or trap dust particles. • A 100% renewable and abundant natural resource.• Good sound insulating & acoustic properties. • The flax crop has a quick growing cycle.• Able to absorb a large amount of water & moisture (own dry body weight). Environment & Health• Absorption ability allows for a wide range of • Crops of flax require up to 5 times less use of permanent dyes to color the textile. fertilisers and pesticides when compared with• Quick drying material. cotton crops.• Easily refreshed by washing. • The entire flax crop is used - no waste is created• Ability to retain shape after washing as it does during harvesting. not hold elastic properties. • Flax farming does not damage the earth beneath • Known as one of the fibers that holds the most and is not hazardous to eco systems. heat resistance. • Processing does not use as much energy or• A thermal/cooling regulating chemicals compared with artificial textile fibre fiber which allows skin to breathe – keep you cool in processing. the summer and warm in the winter. • Look for natural,chemical free, untreated and uncoloured linen for the truest eco credentialsDisadvantages check with the manufacturer for details.• Acid is known to disintegrate flax fibers. • In untreated state, holds no associated health• Flax fibers are easily ignitable and burn quickly risks. Performance due to the cellulose content. • The strongest & most solid textile fibre known.• Heat resistant properties will deteriorate the • Similar tensile strength qualities as some types natural oils which hold the cells together when of steel. exposed to steam and hot water over time - • Strength increases when damp or wet. Consider this point when washing & cleaning linen. • Excellent resistance to pill. Disposal / Biodegradable • 100% biodegradable without treatments.ProducersFlax is grown in many parts of the world, but top qual- Costity flax is primarily grown in Western Europe. In very • Good quality linen can be more expensiverecent years bulk linen production has moved to East- than comparable fabrics.ern Europe and China, but high quality fabrics are stillconfined to niche producers in Ireland, Italy and Bel-gium, and also in countries including Poland, Austria,Belgium, France, Germany, Denmark, Lithuania, Lat-April - June 2012 20
  16. 16. YARN TEXTILE Value ChainYarn Manufacturing Process Open End……………………………………………......open end yarnCotton Mixing… blow room…Carding…. Drawing….ring frame…. winding …..carded yarn Combing… drawing…ring frame…winding…carded yarnY arn is a long continuous length of interlocked fibers, suitable for use in the production of textiles,sewing, crocheting, knitting, weaving,embroidery and ropemaking. Thread is a type of yarnintended for sewing by hand or machine..Embroiderythreads are yarns specifically designed for hand or machine embroidery.Manufacturing MethodYarns are made up of a number of singles, which areknown as plies when grouped together. These singlesof yarn are twisted together (plied) in the opposite di-rection to make a thicker yarn. Depending on the di YARN STRUCTURE thread, or “single.”Twisting fibres into yarn in the process calledspinning and yarn spinning was one of the very first processes to be industrialized. Spun yarns may contain a single type of fibre, or be a blend of various types. Combining synthetic fibres with natural fibres is very rare. The most widely used blends arecotton-polyester and wool-acrylic fibre blends. Blends of different natural fibres are common too, especially with more expensive fibres such as alpaca, angora and cashmere. S- And Z Twist Yarn Yarns are selected for different textiles based on the characteristics of the yarn fibres, such as warmth (wool), light weight durability or softness .Acrylic yarnrection of this final twist, the yarn will be known as s- is the least expensive.twist or z-twist. For a single, the direction of the final 2. Filament yarn: consists of filament fibres eithertwist is the same as its original twist. twisted together or only grouped together.. Silk isTYPES OF YARNS a natural filament, and synthetic filament1 Spun yarn is made by twisting or otherwise yarns are used to produce silk-like effects. bonding staplefibres together to make a cohesiveApril - June 2012 22
  17. 17. YARN TEXTILE Value Chain3. Texturized yarns: are made by a process of air tex turizing , which combines multiple filament yarns into a yarn with some of the characteristics of spun yarnsColorYarn comes in many colors Yarn drying after being dyedin the early American tradition, at Conner Prairie livinghistory museum.Yarn may be used undyed, or may be colored with nat-ural or artificial dyes. The colours can be very prettyMost yarns have a single uniform hue, but there is alsoa wide selection of variegated yarns: HEATHERED OR TWEED: yarn with flecks of different colored fiber OMBRE: variegated yarn with light and dark shades of a single hue MULTI-COLORED: variegated yarn with two or more distinct hues (a “parrot colorway” might have green, yellow and red) SELF-STRIPING: yarn dyed with lengths of color that will automatically create stripes in a knitted or crocheted object MARLED: yarn made from strands of different- wool may contain only 60 meters. colored yarn twisted together, sometimes in • There are several thicknesses of yarn, also closely related hues referred to as weight. This is not to be confusedAMeasurement with the measurement and/or weight listed above. comparison of yarn weights (thicknesses): the The Craft Yarn Council of America is making an top skein is aran weight, suitable for knitting a effort to promote a standardized industry system thick sweater or hat. The manufacturer’s rec- for measuring this, numbering the weightsommended knitting gauge appears on the label: 8 to from 1 (finest) to 6 (heaviest).10 stitches per inch using size 4.5 to 5.1 mm needles. • A more precise measurement of yarn weight, oftenThe bottom skein is sock weight, specifically for knit- used by weavers, is wraps per inch (wpi). The yarnting socks. Recommended gauge: 5 to 7 stitches per is wrapped snugly around a ruler and the number of inch, using size 3.6 to 4.2 mm needles. These yarns are wraps that fit in an inch are counted.manufactured in Japan and have variegated colours in • Labels on yarn for handicrafts often includea random-dyed pattern. information on gauge, known in the UK as tension,“SOME OF THE STANDARD MEASUREMENTS USED IN which is a measurement of how many stitches andWORLD” rows are produced per inch or per cm on a specified• Yarn quantities are usually measured by weight size of knitting needle or crochet hook. in ounces or grams. In the United States, Canada • In Europe textile engineers often use the unit tax, and Europe, balls of yarn for handcrafts are which is the weight in grams of a kilometre of yarn, sold by weight. Common sizes include 25g, 50g, and or decitex, which is a finer measurement 100g skeins. Some companies also primarily corresponding to the weight in grams of measure in ounces with common sizes being 10 km of yarn. three-ounce, four-ounce, six-ounce, and • Some yarn retail stores try to help the customer eight-ounce skeins. These measurements are taken choose yarn by attaching a sample knitted square at a tandard temperature and humidity, because to the shelf holding each display of a particular yarn can absorb moisture from the air. The weight of yarn, sometimes provided by the actual length of the yarn contained in a ball or skein manufacturer. These samples are knit in the can vary due to the inherent heaviness of the fibre industry standard four-by-four inch/ ten-by-ten and the thickness of the strand; for instance, centimeter gauge. Samples help the buyer by a 50g skein of lace weight mohair may contain showing them the texture and thickness of the several hundred metres, while a 50g skein of bulky finished knit fabric.April - June 2012 23
  18. 18. YARN MANUFACTURERS INTERVIEWDamodar Group MD. Mr. Anil Biyani, Mr. Abhishek, Mr. Aditya Where does your company stand in the entire Value chain? We are at the second stage of the textile value chain. We convert theExclusive Interview with fibres into yarn form by way of spinning natural or man made fibres.DAMODAR GROUP M.D Yarns are also produced by conversion of polyester chips to yarn. We as a company are into value addition of yarns. We are known in theMr. Anil Biyani: 25 years of industry to provide fancy yarns made out of different combinationexperience with qualified in of fibres or different kind of effects giving a unique look to the fabric.textile from Sasmira college and We cater to almost all segments of the traditional textiles like suit-Bachelors in human ecology. ing, shirting, home furnishing and knitting with our novelty products.Mr. Aditya Biyani: BMS Graduate How is the textile industry growth? With reference to opportunity,with Masters in Family Business revenue, exports, foreign directinvestment (FDI), etc?Management and four years of Textile industry is a very labour intensive and high capital invest-Business experience ment business. India has ample cheap skilled labour in comparisonMr. Abhishek Biyani: with other developing or developed countries. Consumption is inBE Graduate with masters in the developed countries and manufacturing is shifting to countries like Vietnam, India, China etc. India is the 2nd largest producer ofFamily Business Management, cotton and cotton yarn in the world. Finished garments, Technical3 years of business experience. Textiles, Home Textiles, and Yarns - all have a great scope for ex- ports. Foreign Investment is required in technical know-how. ThereThey had shared their views is lot of opportunity in joint ventures with international companies which still remains largely uncapped.about FDI in textile “FDI required in technology and there are lot of Why is the textile industry so fragmented? Or unorganized?opportunity in Joint Venture with Textile industry has absolutely no barriers for entry and exit. Anyinternational companies player can enter at any scale, at any point in the textile value chain.which is still remains uncapped.” Textile industry has developed in many parts of India, starting from south - Tirupur, Coimbatore, Bengaluru, Ichalkaranji, Bhiwandi, Su-Also they had expressed that rat, Bhilwara etc. Too many players and multiple locations is the“Textile industry has no barriers for main reason for it being unorganised.entry and exit, any players can enterat any scale and any point in textile Why is there a gap between organized and unorganized sector?value chain.” As mentioned earlier, Textile Industry is a high capital intensive in- dustry having long pay back periods. It is easier for large organised players to raise capital for expansion in comparison with small play- ers. This is the main reason for the gap.April - June 2012 24
  19. 19. YARN MANUFACTURERS INTERVIEWDo you feel the Gap between Textile industry and Tex-tile Education Industry? If yes, why?Textile is not yet a white collar job and the youth todaywants the white collar job. Every engineering studentaspires to work in IT or in Automobile companies wherethey can get a good package. In comparison to thoseindustries, Textile is yet not a good pay master andhence becomes less lucrative to the youth. With thedevelopment of industries like automobile, software,real estate, retail, a lot of graduates prefer to work inthese industries since they seem to be more lucrative.Due to this a lot of graduates are from mechanical andsoftware backgrounds.How can we fulfill or minimize the gap between thetwo (industry and education)?Textile industry has never been a lucrative industry.Media (magazines, newspapers and news) always talkabout software, finance, retail, steel, power and othersectors. For colleges and institutions to develop, me-dia has to play a vital role in creating awareness of thesame. Government can also play a major role in creat-ing awareness of the textile industry.Current Market where Management institutes areflourishing in country, but very less organized TextileTechnical Training institutes. Does industry not re-quire technical people or less demand /supply?This industry like any other requires the technical andnon technical qualified people. The reason of not hav-ing is a result of the lack of awareness amongst thenew generation and the same could be done by themedia. Textile is second only to agriculture in employ-ment and also contributes to a major portion of theGDP. The number of colleges and courses are less be- As a traditional industry, we have resources tocause the youth is not that aware of this industry and demand the need of consumer. Still need to importthe media has always spoken about IT, finance, auto- few ancillary products, raw material from othermobile etc sectors. If media creates awareness we are countries. Do we have any solution for this?sure we will have the youth opting for the same as it’s When does one import:-a fashion industry. a. When it is locally available but at extra ordinaryGovernment and Manufacturers are important actors prices (in case of monopolistic items)of value chain. In which area both lack in growth path b. When it is not available but there is a hugeof industry and education? demand These are 2 the basic reasons why oneFor any industry to grow, stable government policies imports. Especially in the fashion industry whereand basic necessities are required to run efficiently. All fashion changes every month one has to be readythis must be made available by government. Today In- with new products or new services every season.dia is facing huge problem of power shortage which In today’s time, it is not about manufacturingis hampering output and affecting financial position everything and being self sustainable. It is aboutof the industry. Innovation is required at the manufac- optimising the resources available and takingtures end to stay ahead of competition. Leading posi- advantage of them and becoming a leader in itstion can only be obtained by stable, favourable policies specialised field.by government. India was a leading exporter of cottonyarn, but has lost its ground since last year due the banplaced by the government earlier.April - June 2012 25
  20. 20. New Yarns W alk into any yarn department or store and the variety of yarns and colors will amaze you. Beautiful textures, interesting fibers and exciting blends are now available along with classic, traditional Chenille Yarns yarns. Most yarn companies provide pattern books, leaflets and even pattern ideas right on their labels. These patterns give you a good idea of how a yarn is crocheted or knitted to best advantage. Generally, projects with intricate stitch patterns are not shown in highly textured yarns because the stitch detail would be lost. The beautiful texture of these yarns is what you want to show. To help you better understand what these new yarns look like, following is a brief look at some of the more popular new yarn types. Keep in mind that some new yarns are combinations of one or two types such as eyelash yarn mixed with ribbon yarn. Eyelash or Fur Yarns When working with highly textured yarns, remember to count your stitches often because it is easy to miss a stitch or make two stitches in one. When ripping out textured yarn, do it slowly so as not to break the yarn. And when making a garment with a highly textured yarn, if you have difficulty joining seams, try substituting a smooth yarn in a matching color. Boucle Yarns Brushed Yarns Loops are created on a base fiber of boucle yarns. The size of the loops and the distance between loops can vary greatly. Chenille Yarns Chenille yarns have a center fiber that locks threads in place creating soft piles Boucle Yarns of fiber on either side of the base fiber. When knitted or crocheted, the fabric resembles velvet or velour. Eyelash or Fur Yarns Strands of yarn stick out from a core fiber to create eyelash yarns or fur yarns. Ribbon Yarn Depending on how close and long these strands are, the yarn can appear furry. Brushed Yarns A variety of yarn types and fibers can be brushed to give a fuzzy appearance Ladder Yarns and soft feel, simulating the look of such natural fibers as mohair. Thick and Thin or Home Spun Looks Certain sections of the yarn are spun more tightly than others to create a thick and thin appearance. Thick and thin yarns often have a home-spun look and are usually quite bulky. Metallics Lames or Lure Ribbon Yarn Woven or knitted ribbon yarn come in a wide variety of widths and fibers. Their flat surface “crinkles” when knitted or crocheted, creating interesting Nubby or Slub Yarns textures. Ladder Yarns Two base fibers are joined at spaced intervals by strands of yarns, creating “steps.” Ladder yarns come in a variety of widths and the spacing of the “steps” can vary greatly. Metallics Lames or Lure Shiny effects in metallic lame or lure yarns can be achieved using real metal- lic fibers but most commonly, shine is achieved with strands of plastic or synthetic filament, which are light weight and soft to the touch.Reference: Nubby or Slub YarnsCraft Yarn Councils, As a yarn is spun, the machine periodically twist the yarn creating nubs www.craftyarncouncil.com (sometimes called slubs) on the surface. Nubs can be placed close together or far apart.April - June 2012 26
  21. 21. FABRIC: KNITTINGNaalbinding – History of Knitting through the loops already.by B. V. Doctor, HOD of Knitting Department, Following is a very basic in-SASMIRA’s Institute of Man Made Textiles, Mumbai troduction to naalbinding,Naalbinding is also known as “cousin” of knitting and using the simplest possiblecrochet. It predates both knitting and crochet by about stitch.atleast 2000 yrs. Naalbinding is a textile technique that Start by making a loopuses a single, eyed, needle to create a stretchable fabric in the yarn. The red ar-by sewing non-continuous lengths of thread in a fash- row marks the end of theion that in its most basic form is a series of buttonhole yarn where the needle is. Hold this loop flat as shownstitches / darning stitches and in more complex forms above. Then put the needle through the loop from theare threaded together. The thread is not pulled tight bottom, over the lower part of the loop, under the up-against itself forming a hard knot, but the stitches are per part of the loop and over the loose end of the yarn.tensioned, often around a thumb or needle, leaving a When the needle is through the previous loop, tightenmeshwork of interlocking loops of thread. Diagram of it around the needle. The size needle used determinesthe simple buttonhole stitch variant the gauge of the stitches. This picture shows a looseA basic method of naalbinding row of these stitches. The most recent one is on theIn naalbinding each loop is connected to at least one right - trace it through the previous loop to see its over-on either side as well. In regular knitting, each loop under-over course. This stitch can be described moreis only connected to those directly above and below concisely as O/UO. The / shows the point in the over-it.The resulting fabric is generally built spiraling up row under-over path where the yarn switches from mov-by row and can be very elastic or quite stiff depending ing deeper into the previous stitches to moving backon the variation and material used. It was regarded as out towards the edge of the work. Stitches of greatera superior craft because it required more skill to pro- complexity are made by going through more than oneduce. The fabrics created are thicker and warmer. of the previous loops and in different paths.Since a sin-The technique of working a fabric of interlocking loops gle row of stitches isn’t very useful, the next step is towith a needle and thread may be traced back as far learn how to work in the round. Start by making a loopas the neolithic period. The earliest known extent ex- just like that in the first illustration, but larger thanamples of nålbinding, if one is to include the button- the one you used for starting a row of stitches. Thishole stitch versions, are from c 6500 BC found in Nehal will be the foundation for working a circle of stitches.Hemar, a cave in the Judean desert, Israel and Chinese Now work a stitch just as you did previously, but thishats from 1000 BC. The next specimens are fragments time go through the foundation loop from the frontfound in Denmark from the Mesolithic era of the Stone before working the rest of the stitch. Continue to workAge (4,200 BC calibrated). Since the Stone Age a num- stitches through the foundation loop and through theber of examples have turned up. By the 5th century previous stitch. The needle goes over then under theAD there are already a number of very complex ex- foundation loop, then over and under the previousamples. For example a sock found in Egypt from the stitch, and finally over the loop of the new stitch. After4th to 6th centuries AD acquired by the Imperial Mu- you have a number of stitches worked into the founda-seum of Austria in 1890. During the Viking Age even tion loop, pull the end to tighten this loop. Then con-more examples begin to turn up. A wool sock found tinue working around the circle of stitches you haveat Coppergate, York, England, from 970 AD with evi- already made, but instead of going through the foun-dence of madder dye on the ankle. Two mittens from dation loop, go through a stitch of the previous row inIceland dated to the 10th century. From C4-C6 Egypt exactly the same way. Increases are made by workingthere are several examples of sandal socks worked in two stitches into one stitch from the previous row, anda form of naalbinding which resembles true knitting, decreases are made by working two stitches together.and for this reason the technique is sometimes called There are at least 30 naalbinding stitches. Up to 1024‘single-needle knitting’, to distinguish it from knitting variations of one form of naalbinding are possible.on two needles. Naalbinding is slow process becausethe entire length of yarn must be pulled through eachstitch, but it will not run. Naalbinding can only be donewith short lengths of yarn (about 18 inches), which arejoined together as the work progresses.Several different forms of naalbinding are known,from very simple to highly complicated and they aredescribed by the course of the needle and threadApril - June 2012 27
  22. 22. GARMENT A Stitch in Time- Technology to meet Challenges of Apparel MerchandisingInstead of relying on people to design, communicate, • Planninganalyze, project and improve, fashion/apparel/acces- Garment Order Processingsory brands now have the digital technologies to meet It is the most important process being carried out atthese needs in a much faster way. export companies. The process includes: • Style CostingApparel Industry Processes and System include: • Order Confirmation• Concept Development • Fabric Purchase order• Product Design • Accessory Purchase Order• Sampling • Final Garment Order• Pre Production• Materials Management Pattern Grading and Marker Making• Sourcing Pattern grading is the scaling of a pattern to a different• Vendor Management size by incrementing important points of the pattern• Production using an algorithm in the clothing and footwear indus-• Store try.Drawing Software Merchandise and Assortment PlanningThese are used by the Fashion Designers or Technical Merchandise & Assortment Planning helps companiesDesigners to create drawings at various stages of a gar- deliver the right products, in the right quantities andment lifecycle. at the right time to meet local demand, maximize sales• Storyboard opportunities through minimized out of stocks, and• Sketches thus protect margins.• Measure Images • Customer based functions -Sales, Returns,• Construction Images Exchanges, Discounts, etc.• Packaging Instructions • Inventory Management – Inventory Control,• Label and Tag Placements Purchasing, Receiving and Transferring of• Seams and Stitches Diagrams Products • Sales information - Reporting, Sales Trends,3D Sampling Cost/Price/Profit AnalysisIt simulates true to life draping, fit and design on a vir-tual human body in a 3D environment. It includes: Production Planning and Sourcing• Parametric Human Body The need for fast and effective planning demands an• Transform 2D Designs into 3D Garments easy to use Planning and Sourcing tool for management• Fabric Simulation of the entire supply chain, planning and monitoring all• Stitch Garments virtually new styles/orders from initial concept to delivery.• Garment Fit Analysis The tool may be used for• 3D Range Presentation • Supply Chain Management • Production Planning and ControlEnterprise Resource Planning (ERP) • Merchandise Planning and ControlEnterprise resource planning (ERP) integrates internal • Critical Path Managementand external management information across an en-tire organization, embracing finance/accounting, man- Visual Merchandisingufacturing, sales and service, etc. Visual merchandising is the activity of promoting theThe modules include: sale of goods, especially by their presentation in retail• Customer Order Processing outlets. It helps to• Purchase Order Processing • Create virtual stores of any grade/size• Warehouse Management • Design fully merchandised shopfloors• Finance/Costing • Create Planograms to communicate with • Manufacturing the shopfloor staffApril - June 2012 29