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  2. 2. P 118, Rajlaxmi Commercial Complex, Kalher Village, Kalher, Bhiwandi, Thane . 127, Sanjay Building, 5-B, Mittal Estate, Andheri (E), Mumbai - 400059, Maharashtra, India (022) 28505452, 28501686, 28505983 (022) 28504142 Contact Person : Mr. Satish Kriplani : 9323646986 Email : ramdevsyntheties@rediffmail.com ADVT. Kriplon Synthetics Pvt. Ltd.
  3. 3. Technology from, THE NATIONAL WIRE HEALD WORKS PVT. LTD. Every Products is designed & made specific to our customers need for the highest weaving speed avialble to day is pojectile or air Jet or Repier or water jet Plot no. 65 Block No. 65, At & Po. Mota Borasara, Tal. Mangrol, Dist Surat ( Gujarat) India Ph. : + 91-2621-234365 / 712, E-mail: karan@keytex.in, pratik@himson.in, Website : www.keytex.in ADVT. “ KEY” brand is the weaver’s first choice for the healds and drop pins for high speed & Quality weaving
  4. 4. “Success depends Upon previous preparation, and without such preparation There is sure to be failure.” Confucius National Textile Policy A n important recent development concerning the textile industry is the constitution of an Expert Committee under the Chairmanship of Shri Ajay Shankar, Member- Secretary National Manufacturing Competitiveness Council, to formulate National Textile Policy. All said and done, the Textile Industry which employs 10.5 crore people directly or indirectly and earns foreign exchange to the tune of US $ 30- 35 billion (which is expected to cross US $ 50- 55 billion shortly) is extremely crucial to the national economy. It is gratifying that Government is giving due recognition to this industry. After all, from time immemorial India has been the home of cotton. Charka played an important role in the national struggle for independence. India should be proud of its textiles, because it is the epitome of her culture, heritage and tradition. The National Textile Policy is expected to unfold the roadmap for growth and development of the industry. Cloth is the basic necessity of human beings and hence the industry is excepted to meet clothing requirements at affordable prices in adequate quantities. But mere principles lead us nowhere, and hence the following development matrix: 1. To adopt the best of technology for the manufacture of textile and garments for product development, so that the country wins the international race in and emerges at the top. 2. To increase production of cotton and man- made fibres in tune with the increased demand, whether domestic or export The earnings of the marginal farmers is always a matter of concern. 3. To continue TUFS on a long- term basis. 4. To adopt pragmatic labour policy in tune with the demands of the present time. 5. To encourage applied research in textiles in a big way so that the industry can be self- sufficient in technology, product development and forecasting. 6. To organize in the country the manufacture of weaving, processing and garmenting machinery of the current generation by encouraging joint collaborations with reputed machinery manufacturers or otherwise. 7. To encourage Branding. 8. To get foreign fashion experts to strengthen fashion technology, in the country. 9. To organize fashion shows on international scale. However proper formulation of the policy is only the starting point. What is required is its proper implementation. In 2010 or thereabout, the Ministry of Textiles formulated National Fibre Policy which continues to stay under wraps. The Textile Value Chain requested some experts, who are not directly in the business of manufacture of textiles and garments to give their views on what needs to be done to ensure towering success for the industry. We are glad to present their views to our readers.
  5. 5. ADVT.
  6. 6. OCT- DEC 2013 ISSUE 9 & 10 30 61 Government News Journey from Textile/ Clothing to Fashion / Lifestyle Interview : Mr. Rajesh Gawade + Mr. Abhijeet Bham by Dr. Darli Koshy, ATDC/ AEPC 62 11 & 12 Economy News 33 13 Pet Bottle Recycling & Non Wovens Branding Necessity in Textiles International News 65 by Mr. Harish Bijoor, Consultant 14, 15, 16 AGM CORNER : ITTA + ITAMMA 39 Corporate News SRTEPC + FAIMA PEER REVIEWED RESEARCH PAPER Alidhara ,Textechno, ATE COVER STORY : REINVENTING TEXTILE INDUSTRY 19 67 “ Effect of Natural Dyes on Physio, Chemical & Anti microbial Properties of Cotton & Silk” POST SHOW REPORT : WEAVETECH 13 + SEMINAR ON ENERY AUDIT 43 Growth & Strategic Perspective by Dr. Ritu Dewan & Dr. Bharathi Kamath, Mumbai University 48 21 68 Geographical Indication as an Instrument for Sustainable Development Interview : Anup Kumar + Profile of Shri Bhairav Lifestyle A Vibrant Future for Indian Textiles POST SHOW REPORT : SCREEN PRINT INDIA + TECHTEXIL 69 POST SHOW REPORT : YARNEX / TEXINDIA 22 HR Dimension to textile industry 50 70 Fashion Forecast by Mr. K. Chakravarthy, Thermax POST SHOW EVENT : 6TH CLOBAL SKILL SUMMIT 51 71 Mesta Bast Fibre by Shri V.Y. Tamhane FICCI : TAG 2013 + TECHNOTEX 2014 25 53 Knowledge , Major Hindrance in Technical Textile CITI News 54 Interview: Mr. Mohan Kavrie, Supreme Group PRE SHOW REPORT : ITMACH 2014 + HEIMTEXTILE Skill Gap Analysis 74 55 Textile Policy Measures to harness full Potential TRADESHOW REPORT CornHusk Fibre 75 by Mr. S. Chakrabarty, TMMA 57 FABRIC REPORT 27 Hygienic Wool through Dyeing with Green Tea 78 26 Speech of Shri Manikam Ramaswami, Texprocil 72 YARN EXPORT PRICE 60 28 Opportunity & Challenges by Indian Textile Engineering Industry GOTS Labeling & Trademark Protection by Mr. Navdeep Sodhi, Gherzi Textile EDITORIAL TEAM Editor & Publisher Ms. Jigna Shah Chief – In – Editor Ms. Rajul J. Shah Editorial Advisor Shri V.Y. Tamhane INDUSTRY Mr. Devchand Chheda – City Editor - Vyapar ( Janmabhumi Group) Mr. Manohar Samuel- Joint President, Birla Cellulose, Grasim Industries Mr. Aditya Biyani- Marketing Director, Damodar Group Dr. M. K. Talukdar – VP Kusumgar Corporates , Mr. Ajay Sharma – GM- RSWM (LNJ bhilwara group) Advertising & Marketing Md. Tanweer Creative Head Ms. Rajul J. Shah Graphic Designer Interactive Technology EXPERT COMMITTEE FOR OCT-DEC 2013 Dr. Sujata Saxena , Sr. Scientist , CIRCOT Dr. A Desai , Director, BTRA CONSULTANT / ASSOCIATION EDUCATION / RESEARCH Mr. Avinash Mayekar, MD, Suvin Advisor Pvt. Ltd. Mr. B.V. Doctor - HOD knitting, SASMIRA , Mr. Shivram Krishnan, Senior Textile Advisor Dr. Ela Dedhia- Associate Professor, Nirmala Niketan College Mr. G. Benerjee, Management & Industrial Consultant Dr. Mangesh D. Teli – Professor, Ex.HOD & Dean ICT (former UDCT) , Mr. Uttam Jain, Director- PDEXCIL; VP of Hindustan chamber of commerce Dr. S.K. Chattopadhyay,Principal Scientist & Head MPD, CIRCOT Mr. Jaykrishna Pathak, President, Bombay Yarn Merchant Association & Exchange Ltd. Dr. Rajan Nachane, Retired Scientist, CIRCOT Mr. Shiv Kanodia- Sec General, Bharat Merchant Chamber Mr. N.D. Mhatre, Dy. Director, ITAMMA
  7. 7. Delhi Off.: Krishna Gali. 1st floor, Katra Neel. Chandni Chowk, Delhi-110 006 Tel.: 23934712 / 23951612 / 32600574 Fax: 23965942 Factory.: Raj Rajeshwari Compound, Village Sonale, off Nashik Highway Road., Bhiwandi, Dist. Thane (Mah.) ADVT. Regd. Off.: 191/ 5-C, Mittal Ind. Estate, Andheri (E), Mumbai-400 059. Tel.: 2850 3106 / 1568 Fax: 2850 0124
  8. 8. Discover Markets, Find New Customers BHILWARA AHMEDABAD ITMACH BHOPAL INDORE BARODA SURAT INTERNATIONAL VAPI TEXTILE MACHINERY MALEGAON SILVASSA & ACCESSORIES TARAPUR NASHIK MUMBAI BHIWANDI NAVI MUMBAI EXHIBITION PUNE January 22-24, 2014 Bhiwandi, India SOLAPUR ICHALKARANJI KOLHAPUR BELGAUM VENUE: Indian Corporation Premises, Mumbai - Nashik Highway (NH-3), Anjurdive, Bhiwandi Virar y wa LI High IVA ad Connectivity & Distance From Exhibition Venue Wa da oad under R : : : : : : : : : A 0 Km 35.5 Km 29.5 Km 32.5 Km 14.2 Km 13 Km 26.7 Km 22.5 Km 13.6 Km 20 Km Ghod B N.H. 3 Domestic Airport International Airport Borivali Station Kalyan Station Thane Station Ghatkopar Vikhroli Mulund Vashi (Navi Mumbai) R ab BO hmed BHIWANDI dM Ol b um ai Ag Anjur Phala ra Road Bhiwandi Station Kalher Kalyan Naka Vanjarpatti Naka MM CP ipe Sonale Lin e& Shree Rajlaxmi Textile & Industrial Park Rd ITMACH 2014 VENUE . Ranjnoli Naka D. P. Road Vadpa Saibaba Mandir Mumbai - Nashik Highway NH3 MUMBAI THANE Mankoli Naka Diva NASHIK KALYAN CITY Thane Station SPACE BOOKING ENQUIRY VISITOR REGISTRATION Arvind Semlani: Cell - 9833977743, Farid K S: Cell: +91-9869185102 Tel. +91 (22) 22017013/61/62/63, E-mail: info@itmach.com, Website: www.ITMACH.com E-mail: seivices@itmach.com
  9. 9. ADVT.
  10. 10. ATDC FARIDABAD INTRODUCES INDIA’S FIRST EVER KNITWEAR SPECIALTY TRAINING CENTRE skill development in the sector which at present lacks supply of skilled hands. The AEPC-ATDC SMART Bhawan the 4th Permanent Campus building in NCR was inaugurated at the hands of Dr. Kavuru Sambasiva Rao, Hon’ble Minister of Textiles, Government of India; at Faridabad – Haryana. The AEPC-ATDC Bhawan and new concept – Knitwear Specialty Centre launched today is a speaking example of ATDC’s commitment of being ‘Of the Industry’, ‘By the Industry’ and ‘For the Industry’. The AEPC-ATDC ‘SMART Bhawan’ situated amidst a cluster of Apparel Export Units in Faridabad, which alone boast of Rs 3,000 Crore worth ‘Apparel export’ potential has over 50 apparel export units and 30 fabric processing units employing over 60,000 people in the cluster. The Faridabad Apparel cluster holds a key importance in the Apparel industry in Northern India. GOVERNMENT NEWS AEPC-ATDC Smart Bhawan Inaugurated By Textiles MinisterDistributes Disha Adoption Certi cates To Garment Factories This is the second distribution of the DISHA Adoption Certicate, rst was distributed by Smt. Kiran Dhingra IAS, erstwhile Secretary Textiles, to the ‘DISHA Champions’ in January 2013 at AEPC. It is noteworthy that more than 150 ofcials across India are engaged in implementation of the DISHA programme. This programme has been designed and developed by Indian agencies with an India Centric approach keeping in mind the Indian law of the land. The Union Minister of Textiles took keen interest in viewing the sewing technologies for woven & knit training programmes on display at the centre and appreciated the efforts of Apparel Training & Design Centre (ATDC) for playing a key role for development of this sector. Acknowledging the presence of domestic & export apparel manufacturing clusters in Faridabad, notching up around Rs. 3000 Cr. exports, he emphasized the need for product diversication and Sericulture Workers to get MNREGA Benet , TUFS to Generate Investment for Textile Industry The Union Minister of Textiles Dr. Kavuru Sambasiva Rao chaired a Conference of State Ministers of Textiles in Vigyan Bhawan to encourage investment in textile sector in various sectors including handloom, handicraft etc. Development Shri Jairam Ramesh has agreed to integrate sericulture workers, where the farmers are marginal and small scale with the benets of Mahatma Gandhi National Rural Employment Gurantee Act (MNREGA).” Dr. Rao said that the Technology Upgradation Fund Scheme (TUFS) has been notied. Earlier, approval for continuing the TUFS during the 12th Plan period with a major focus on powerlooms in accordance with the Budget announcement for the nancial year 2013-14. A major feature of the Scheme is that to promote indigenous manufacturing of the textile machinery, Interest Reimbursement (IR) on second hand imported shuttleless looms shall be reduced from 5 percent to 2 percent. On the other hand, for new shuttleless looms capital subsidy would be raised from 10 percent to 15 percent, IR from 5 percent to 6 percent, Capital Subsidy from 10 percent to 15 percent and margin money subsidy from 20 percent to 30 percent with an increase in subsidy cap from Rs. 1 crore to Rs. 1.5 crore. The Minister added that in the recent past the handicrafts exporters conveyed to him that “they wanted a warehousing facility in one of the countries of Latin America costing about 100-200 crores which would be spent in about ve years.” He added that he has taken up this issue with the Finance Minister “and they are in support of it and I think we will be very soon getting budget for that also and construct a warehousing facility possibly in Uruguay by which the handicrafts exporters have assured me will double the exports from 17,000 to 34,000 crore in less than three years.” Highlighting the issue of skills training, Dr. Rao mentioned that “we should concentrate more on skills training.” He mentioned that the Ministry is “encouraging private institutions and industries” for the same. “We told them that we will give them money for training at the rate of Rs. 10,000 per trainee and they are very happy that they will undertake the training,” informed Dr. Rao. Dr. Rao said that the Ministry has “decided to increase the production in sericulture from 23 thousand tones to 33 thousand by the end of 12th Plan”. He was also happy to inform that “the production of yarn is beyond the requirements of the nation.” Union Minister for Rural Continuation of the scheme for Integrated Textile Parks in the 12th Plan and additional grant for apparel manufacturing units The Cabinet Committee on Economic Affairs has approved continuation of the scheme for Integrated Textile Parks (SITP) in the 12th Five Year Plan and sanction of new projects for utilizing Rs. 717 crore the balance left in the 12th Five Year Plan allocation, after meeting committed liabilities of the sanctioned 61 parks. progress of the scheme for integrated textile parks had been positive and the scheme had been successful in terms of leveraging private sector investment, employment generation and creation of needbased, product based world class infrastructure for the industry. With the increasing costs of production in established clusters and heightened emphasis on environmental compliances, there is a growing need for establishment of green eld textile parks that would address both these constraints. The CCEA also approved additional grant of Rs. 10 crore to be given to existing parks for setting up apparel manufacturing units. Rs. 50 crore has been allocated for this purpose. The overall impact and 9 TEXTILE VALUE CHAIN | Oct -Dec 2013
  11. 11. GOVERNMENT NEWS NEW INITIATIVES OF TEXTILES COMMITTEE A. Government Policy Mechanism, Tax Structure, RTAs/PTAs, tariffs, NTBs, Infrastructure and Other related issues to the industry stakeholders and policy makers. Efforts are also on to prepare the Textile Competitiveness Index (TCI) for accessing our strength and position in global market. The main objectives of the MIT are Market Intelligence on Textiles (MIT) The globalization and the framework of WTO have increasingly being integrated through different mechanisms like RTA, FTA & Multilateral Trade Agreements. The integration has brought about intense competition among the textile exporting countries for enhancing their market share in global trade, which is driven by different factors like production, cost, pricing, quality and policy mechanism, etc. The country that is competitive will sustain and may enhance its market share, while the less competitive countries may lose. There is a need to analyse the factors affecting the global trade in textiles at disaggregate level so as to access the position of a country in the global market in a systematic and sustained way. Further, the information available on key trends are also scatter and require further compilation and analyses. In order to bridge the information gap in terms of analysis and dissemination, the Textiles Committee is preparing a comprehensive database on the different facets of the textiles sector so as to share with the trade and industry and govt. for appropriate policy decision in form of Market Intelligence in Textiles (MIT). It will act as one point reference for the sector on various issues pertaining to the Sector. b. Export Competitiveness Studies: The process of liberalization initiated in 1991 by the Government of India has increasingly integrated the Indian Economy to the world. However, the emergence of multilateral negotiations under the framework of WTO and the signing up of RTA/FTAs, etc. by the different countries has created different challenge and so also opportunities for the sector in terms of export. The constraints arised out of intense competition by different countries like China, Bangladesh, Pakistan in different export destinations with India. These constraints could be converted into opportunities, if the Indian textile enjoys competitive advantage at different product levels in the world market. The advantage may be in form of price advantage, quality advantage or advantage in terms of fashion or preference. The only way to convert the challenges into opportunities is to study the position of the Indian T&C products vis-à-vis competitors in the different export destinations and disseminate to the key stakeholders including the government for appropriate business strategy and policy decisions. The MIT will provide information on Production, Domestic Demand, Export & Import, Price & its Mechanism, Competitiveness & Competitors, Cost benchmarking, Keeping these aspects in mind, the Textiles Committee has initiated the “Export Competitiveness Study” in different export destinations . Golden Jubilee Celebration of the Textiles Committee The Hon’ble Union Minister of Textiles, Dr. Kavuru Sambasiva Rao inaugurated the Golden Jubilee Year of Textiles Committee on 11th October 2013 at Mumbai. Dr. Rao lauded the contribution made by Textiles Committee to the growth of textile industry of the country during last fty years. While congratulating the Committee on the occasion of golden jubilee celebration, he also urged that the Committee has to undertake more proactive work on the areas like skill development, for providing quality manpower to the industry besides generating employment opportunities for the country. He was of the opinion that the development of this sector as well as the economy is possible, when organization like Textiles Committee, undertake more and more research and development in the areas of new products, technology and testing facilities. Appropriate strategy towards the effects of globalisation for capatalising the benets of it is also the need of the hour. Hon’ble Minister also released the Coffee Table Book “A Journey of Growth through Transformation & Commitment”, special Postal Envelope, Market Intelligence in Textiles and Exquisite Handwovens Textiles of Kerala on the occasion of the Golden Jubilee Celebration. He was of the opinion that India can excel in the eld of research and development, when the people having expertise are adequately compensated through productive linked incentives. It not only motivates the researchers already in the job but also attract young talents to the areas of research. He called upon the Textiles Committee, to devise appropriate strategy to motivate the researchers working in this area through appropriate means and submit to the Ministry for TEXTILE VALUE CHAIN | Oct -Dec 2013 10 appropriate action. Among the other dignitaries, Smt Panabaaaka Lakshmi, Hon’ble Minister for States of Textiles, and Petroleum and Natural Gas, Ms. Zohra Chatterji, Secretary(Textiles), Shri S.P Oswal, Chairman, Textiles . Committee, Shri A.B. Joshi, Textile Commissioner & Vice-Chairman, Textiles Committee also addressed on the occasion. While welcoming the guest, Shri S.P Oswal said that the . Committee has completed 50 Golden years and has transformed itself from a Regulatory Agency to a Facilitator of growth. The transformation is an important achievement for the organisation during the journey of 50 years. He was of the opinion that in the area of Market Intelligence in Textiles and Economic Research, the Committee has made a great stride for providing support to the Textiles & Clothing industry. Smt Panabaaka Lakshmi, Hon’ble Minister of States for Textiles, and Petroleum and Natural Gas congratulated the Textiles Committee and recounted the contributions made by it in the area of quality and compliance, market analysis and also providing appropriate testing services to the industry. She was of the opinion that the contribution of the Committee in terms of Handloom Mark implementation and Total Quality Management, star rating of ginning and pressing factories is also remarkable. On the occasion, she also launched the Textiles Committee new website and website of Laboratory Management Information System (LIMS) and Star Rating of Ginning & Pressing Factories. Smt. Zohra Chatterji, IAS, Secretary (Textiles) in her key note address lauded the contribution of Textiles Committee for the growth of cotton textiles in the early year of development and to the industry as a whole in the recent years. At last Dr P Nayak, Secretary, Textiles Committee delivered vote of thanks.
  12. 12. • Global growth to be 2.9% in 2013 which will increase to 3.6% in 2014 • Growth to be driven more by advanced economies and the emerging markets are expected to be weaker than expected • Risks to forecast remain on the downside. Overview The IMF forecasts global growth to average 2.9% in 2013 below the 3.2% recorded in 2012 and to rise to 3.6% in 2014. Much of the pickup in growth is expected to be driven by advanced economies. Growth in major emerging markets, although still strong, is expected to be weaker than the earlier IMF forecast. This is partly due to: • Cooling in growth following the stimulus-driven surge in activity after the Great Recession. • Structural bottlenecks in infrastructure, labour markets, and investment have contributed to slowdown in many emerging markets. Quite signicantly long-term interest rates in the United States and many other economies have increased more than expected. Although the U.S. Federal Reserve recently decided to not slow the pace of its asset purchases yet and capital outows from emerging markets have subsided somewhat, bond yields remain well above levels of early May. Also there is a distinct risk that nancial conditions will tighten from their current, still supportive levels. Some observations • The impulse to global growth is expected to come mainly from the USA where activity will move into higher gear as scal consolidation eases and monetary conditions stay supportive. In the USA, the projections are based on the key assumption that the ongoing shutdown in the federal government will be short-lived and the debt ceiling will be raised on time. Growth is expected to rise from 1.5% this year to 2.5% in 2014 driven by continued strength in private demand, which is supported by a recovering housing market and rising household wealth. Following sharp scal tightening earlier this year, activity in the USA is already regaining speed, helped by a recovering real estate sector higher household wealth, easier bank lending conditions and more borrowing. • In the euro area, policy actions have reduced major risks and stabilized nancial conditions, although growth in the periphery is still constrained by credit bottlenecks. The region is expected to gradually pull out of recession, with growth reaching 1% in 2014. In the euro area, business condence indicators suggest that activity is close to stabilizing in the periphery and already recovering in the core economies. In 2014, a major reduction in the pace of scal tightening, to less than 0.5% of GDP from about 1% of GDP in 2013, is in the offering. However, the support for activity from the reduction in the pace of scal tightening is dampened by tight credit conditions in the periphery. Thus, growth is expected to reach only 11 1%, after contracting by about ½% in 2013. • In Japan, scal stimulus and monetary easing under the authorities’ new policy package—the so -called Abenomics—has enabled an impressive rebound in activity. But the expected unwinding of scal stimulus and reconstruction spending together with consumption tax hikes will lower growth from 2% this year to 1¼% in 2014. RENROC MGA ECONOMY NEWS The IMF released its latest economic outlook for the global economy and the main takeaways are: • China’s growth is projected to decelerate slightly from 7½% this year to 7¼% in 2014. Policymakers have refrained from stimulating activity amid concerns for nancial stability and the need to support a more balanced and sustainable growth path. The forecasts assume that Chinese authorities do not enact major stimulus and accept somewhat lower growth, consistent with the transition to a more balanced and sustainable growth path. This slowdown will reverberate across developing Asia, where growth is expected to remain between 6.25 and 6.5% in 2013–14. • The projections for real GDP growth in India have also been marked down signicantly, with growth foreseen at 3.8% in 2013 and about 5% in 2014. However, this number is reckoned at market prices and at factor cost will be 4.25% and 5% in 2014. • Overall, growth in emerging market and developing economies is expected to remain strong at 4.5–5% in 2013–14, supported by solid domestic demand, recovering exports, and supportive scal, monetary and nancial conditions. Commodity prices will continue to boost growth in many low-income countries, including those in sub-Saharan Africa. But economies in the Middle East and North Africa, Afghanistan, and Pakistan region will continue to struggle with difcult economic and political transitions. GDP Projection for 2013 and 2014 2011 (%) World Advanced USA Euro Germany France Japan UK Emerging/ developing China India Russia Brazil Asean-5 2012 2013 2014 3.9 1.7 1.8 1.5 3.4 2.0 -0.6 1.1 6.2 3.2 1.5 2.8 -0.6 0.9 0.0 2.0 0.2 4.9 2.9 1.2 1.6 -0.4 0.5 0.2 2.0 1.4 4.5 3.6 2.0 2.6 1.0 1.4 1.0 1.2 1.9 5.1 9.3 6.3 4.3 2.7 4.5 7.7 3.2 3.4 0.9 6.2 7.6 3.8 1.5 2.5 5.0 7.3 5.1 3.0 2.5 5.4 TEXTILE VALUE CHAIN | Oct -Dec 2013
  13. 13. AGM CORNER AGM CORNER ECONOMY NEWS ECONOMY NEWS   hat are the downside risks? W 1. The changing global growth constellations have exacerbated risks in emerging market economies. Less U.S. monetary policy accommodation combined with domestic vulnerabilities in emerging market economies may lead to further market adjustment globally, with risks of asset price overshooting or even balance of payments disruptions. 2. Unnished nancial sector reforms in the euro area, impaired monetary policy transmission and corporate debt overhang in some euro area economies, and high government debt and related scal and nancial risks in many other advanced economies, including Japan and the United States are also to be monitored. 3. Geopolitical risks have also resurfaced in recent months which can upset calculations. What needs to be done? 1. The euro area needs to repair its nancial systems and adopt a credible banking union supported by a common backstop. 2. The USA should resolve its political standoff relating to scal policy, and promptly raise the debt ceiling. In addition, the Federal Reserve should carefully manage the process of monetary policy normalization, taking into consideration prospects for growth, ination, and nancial conditions. 3. Both Japan and the United States need to accomplish medium-term scal adjustment and reform of their social safety net programs. Japan and the euro area should adopt structural reforms to boost potential output. 4. Policymakers should allow their exchange rates to respond to changes in the environment and act as shock absorbers, while avoiding disorderly market conditions. 5. In economies where monetary policy frameworks are less credible, efforts may need to focus more on providing a strong nominal anchor. Financial regulation and prudential actions should be taken to guard against nancial instability. 6. Fiscal adjustment should continue to rebuild buffers, unless downside risks materialize and funding conditions allow scal easing. 7. A new round of structural reforms is a must for many emerging market economies, including investment in infrastructure, to reignite potential growth. 8. China needs to rebalance growth away from investment toward consumption to make way for more balanced and sustainable domestic and global growth. Reference : CARE Rating Report AGM CORNER CORPORATE NEWS LENZING: NEW MARKETING INITIATIVE FOR TEXTILES OF TENCEL®/COTTON Lenzing is presenting “Natural Connection”, the new marketing concept especially for TENCEL®/cotton blends, at the textile trade fairs in Paris. The two cellulose bers, TENCEL® and cotton, are ideal partners. They go together perfectly and enhance each other with their properties. Both bers are from Nature and possess similar properties such as good breathing properties. A blend with 30% TENCEL® gives cotton fabrics a new denition. As a result of adding TENCEL®, the fabric’s hand, moisture management and sheen can be enhanced. Thus the innovation potential for TENCEL®/cotton fabrics is great. Depending on the blending ratio, the look and properties of these fabrics can be changed to suit any need. New marketing tools are now available for manufacturers and retailers to promote goods of TENCEL®/cotton. ”For TENCEL®, cotton is the blending partner! Consumers are interested in natural and high-quality materials. This marketing push is aimed at getting these products the attention they deserve. With this initiative, we are presenting our customers with marketing tools ideally suited to promoting TENCEL®/cotton products at retail,” Andreas Dorner, marketing manager, explains. TEXTILE VALUE CHAIN | Oct -Dec 2013 12 The TENCEL®/cotton team Cotton and TENCEL® are used for similar applications. Their main applications are in the clothing sector in shirts and jeans and in bed linens in the home textile sector. In bed linens and shirt applications in particular, quality plays an important role. With a mixture of TENCEL®, the yarn values can be considerably improved with regard to the strength and regularity. These positive effects can be transferred to the nal product and lead to a more attractive fabric with better performance values. Long-staple cotton with TENCEL® is a logical combination. Luxury cotton is in high demand for the nest fabrics and the demand cannot be fullled. TENCEL® can be used in these fabrics as an equal partner. ”Fabrics of long-staple cotton and TENCEL® are unbeatable in terms of quality and visual appeal,” Dieter Eichinger, Vice President of the Textile Fibers Business Unit, is certain. ”There are numerous opportunities to place TENCEL® in relevant products where the added value of a TENCEL®/cotton blend would be appreciated. The combination of both bers gives luxury textile manufacturers and retailers the chance to stand out from massproduced products by means of innovation and marketing,” he explains.
  14. 14. The depreciating rupee value against greenback has boosted the prots of largest textile industry Iin Pakistan. As the listed textile rms prot have jumped by 150 percent to Rs. 30.6 billion in scal year 2013. Industry sources said that the fall of rupee has been seen as a positive sign for exports of Pakistan, as the local currency has fallen 8 percent since the beginning of 2013. With a share of over 50% in the country’s total exports, the textile industry has emerged stronger in scal 2013-14. challenges in safety concerns of textile workers. Recent re incidents in factories of Bangladesh, where hundreds of workers had died, attracted negative international media coverage.. The listed companies, which cover 85pc of textile sector market capitalisation, are very small compared to total Pakistan textile industry. So the actual prots of the textile industry would be much more than Rs30.6 billion. Strong cotton yarn and grey cloth demand from China and its neighboring countries has contributed to higher units sales while margins increased due to stable cotton prices and 8pc Pak rupee depreciation against US dollar. Leading textile industrialists insist that the rise in gas tariff for captive power plants by 17.4% and electricity rates for industrial units by 57% in recent months are going to hit the protability of the sector in the ongoing scal 2014. Industry sources believed that Pakistan’s textile exports are going to benet from two major reasons, as China is focusing more on the technology sector instead of textile, but yarn demand from China is growing. Moreover, Bangladesh which is the second biggest textile exporter in the world after China, is not getting the same number of export orders as it was getting a year ago. The country is facing major Australia and US collaborate on responsible cotton growing A joint programme to raise the awareness of responsible cotton growing practices among producers in Australia and the United States has been developed by Cotton Incorporated and Cotton Australia. The Cotton LEADS programme is aimed at textile brands, retailers and manufacturers committed to sourcing cotton that is grown in a responsible and transparent manner. “Cotton LEADS is designed to assist businesses along the cotton supply chain with their sustainability goals,” says Berrye Worsham, president and CEO of Cotton Incorporated. “Apparel brands, retailers and manufacturers require large volumes and a reliable supply of responsibly-produced bre, as well as proof of responsible production. Through Cotton LEADS we demonstrate how cotton grown in the United States and Australia can help meet these requirements.” Combined, Australia and the United States account for roughly 17% of global cotton production. EASY-IMP project to develop smart clothing in cloud computing modelling, product lifecycle management, simulation and virtual reality, is composed of four academic partners (DFKI, Lyon University, LRI, and IBV), seven companies (ATOS, IAW, ATC, HC, Nuubo, Timocco, SLCMSR) and the Federation of European Sporting goods (FESI). According to ofcials involved with EASY-IMP this infrastructure will , enable all interested third parties to offer new services to smart phone and EASY wearable users, resulting in an open platform of literally innite applications in many target markets. First of all, the EASY approach will be validated in three different industrial scenarios, i.e. rehabilitation, sport and games. ATC is one of the main Technology Providers in EASY-IMP mainly , involved in the development and integration of Meta-Product Cloud Services for Supply Chain Management. In particular, ATC is responsible for the analysis, system-level denitions, implementation, technical testing and user evaluation of the core Production Planning Environment (private cloud), which will support the production planning of customisable intelligent wearables. EASY-IMP started in September 2013 and will run for 36 months. A research project, co-founded by the European Commission, will investigate the potential to create smart clothing with wearable technology in cloud computing. The ‘EASY-IMP’ project proposes to develop a cloud computing enabled framework for the Collaborative Design and Development of Personalised Products/Services. This would then combine embedded sensors and mobile devices with facilities for the joint open development of enabling downloadable applications. The ‘Meta-Products’ consist of intelligent wearables (clothing, footwear, accessories) equipped with embedded networks of sensors. And sensorial data will be communicated to smart phones via Bluetooth or Wi. The required functionality will be congured by the end-users; the design, selection of components, sourcing of materials and sensors, virtual prototyping, as well as production planning and services integration, however, is a collaborative process of all involved companies, designers, sensor producers, software developers and application experts. The research addressed in the EASY-IMP project involves partners from nine countries (Germany, France, Spain, Italy, Slovenia, Belgium, Greece and Israel). And the EASY-consortium, which integrates competences on production methodology, system design and 13 TEXTILE VALUE CHAIN | Oct -Dec 2013 RENROC MGA Depreciating Pakistani Rupee, Appreciating Prot in Pakistan …!!! INTERNATIONAL NEWS INTERNATIONAL NEWS
  15. 15. CORPORATE NEWS LAUNCH: “High Speed Cabler & Twister” for High-Tenacity Yarns Live demonstration of a High Speed & High Efciency solution for Twisting or Cabling of High-Tenacity & Heavy Denier Technical Yarns Showcased at the Techtextil 2013. Application Industries: Tire Cord, BCF/Carpert Yarns, Industrial Threads, Belting, Filter Fabrics, Geo Textiles, Industrial Fabrics, Composites, Packaging Fabrics etc. Alidhra Weavetech Pvt. Ltd. had given a live demonstration of it’s High Speed & High Efciency Machine Model: X-500CC for Twisting & Cabling of High-Tenacity yarns for technical applications. Weavetech Group has a dedicated R&D center in Surat city whose main aim to develop indigenous technologies for Indian markets thus providing the Indian Industry with a competitive edge to respond to global benchmarks of productivity & quality. Since 25 yrs, Weavetech Group has lead the indigenous developments of most efcient Twisting technologies for Indian markets creating many ‘rsts’ in the process. With the same vision, it has now developed a modular Direct-Cabler, Corder & Twister machine with technologies comparable to global benchmarks for the technical yarn markets. Highlights of Cabler/Twister Model: X-500-CC  Processing Speeds of upto 300 mtrs/min  Individual Motor Driven Spindles  Pneumatic Air-Threading & Cradle Lifting  Conveyor System for package transport  Process upto 12000 Denier @ 30-1400 TPM  Process upto 14 Kg knotless packages  Split Control for each side to process different yarns  Lowest Operating & Maintenance Costs Automatic tensile, evenness and count tester STATIMAT DS The new STATIMAT DS combines testing of tensile properties, unevenness, and count of yarn and thread in one tester. The three tests on each package presented by the package changer are performed in succession. Optionally it is possible to test unevenness and yarn count in one test run, which enables to relate the results of both measurements to the same tested yarn length. as control electronics including the PC-based Textechno TESTCONTROL system for the different test modules built in, which leads to a very economic price of the STATIMAT DS compared to 3 separate testing appliances. A further optional accessory is an optical entanglement sensor to measure interlaces in a multilament yarn. The operator has to present the test samples (yarn packages) only to one instead of several different testers, which results in considerable time- and labour savings. All measured data are presented in one test protocol, so that the data can be easily interrelated, for example to calculate tenacity from the measured strength- and yarncount values. With regard to testing technology and technical realization the STATIMAT DS offers numerous technical and technological novelties – for example a patented new capacitor design for measurement of unevenness –, united with a new design philosophy. Essential advantages of the STATIMAT DS: Common use of all peripheral components of the tester like package changer, threading mechanism for introducing the yarn sample into the test sections, yarn feeding device, waste yarn disposal, instrument housing with protective front panel, as well TEXTILE VALUE CHAIN | Oct -Dec 2013 14 Automatic tensile-, evenness-, and count tester STATIMAT DS
  16. 16. A.T.E. Envirotech, an A.T.E. group company, offers complete wastewater treatment and recycling solutions, including zero liquid discharge. The company has already executed over 200 projects in India and other countries that include USA, Puerto Rico, Zambia, Philippines, Ethiopia, Malaysia and Indonesia. Mr. Anuj Bhagwati Managing Director, A.T.E. Enterprises Pvt. Ltd. Most businesses are working to drive down costs while simultaneously reducing their environmental impact. For them, there cannot be a better option than innovative clean technology solutions that offer a plethora of benets: both economical and environmental. A.T.E. not only offers differentiated clean technologies spanning energy, water and air, including remote monitoring, but also domain expertise in application areas, thus distinctly standing apart from a host of other players in the eld. CORPORATE NEWS A.T.E.'s rising presence in clean technology The company undertakes turnkey projects as well as upgradation of existing projects through value added products. The company also undertakes complete project execution and commissioning, re-commissioning, troubleshooting, etc. In addition, it can also take-up comprehensive monitoring and maintenance contracts using innovative remote monitoring technologies. A.T.E. works in municipal infrastructure water and wastewater projects and industry verticals like textiles, dairy, sugar, pharmaceuticals, petrochemical, chemical, healthcare, food-processing and building segment and has a base of satised customers across these verticals. A.T.E. is a reputed, diversied Indian engineering group, which is on the threshold of celebrating its platinum jubilee (75 years) in 2014. A.T.E. has long operated in the elds of textile engineering, ow technology and print and packaging solutions. The group ventured into the clean technology space in 2006 with its entry into Machine-to-Machine solution business, followed by energy efcient cooling solutions and water and waste water management. Leveraging its in-house expertise, the company has developed the highly successful “AAA” process that enhances biological treatment efciency and minimizes sludge generation. It also provides VSEP-EVR (Vibratory Shear Enhanced Processing- Evaporation Volume Reduction), a patented membrane based system from New Logic Research (for reducing the volume of wastewater going to evaporators in ZLD plants). While the VRM (Vacuum Rotating Membrane) based MBR systems from Huber, Germany, can handle difcult to treat efuents, the AVR (Anaerobic Venturi Reactor) based biomethanation plants A.T.E.’s foray into clean technology is propelled by its passion. “I have always been passionate about the environment and wanted to get involved in the environment movement and socially useful businesses, particularly as I was deeply concerned that India is one country that would be badly hit with climate change”, said Mr Anuj Bhagwati, the head of the A.T.E. Group, who is spearheading A.T.E.’s clean tech drive. Here is an overview of A.T.E.’s clean technology businesses: WATER AND WASTE WATER MANAGEMENT: offer sustainable and trouble free operations. For energy efcient water ow management, A.T.E. offers a wide range of pumping solutions from some of the world’s well-known brands and A.T.E. ’s own ‘BoostStar’ hydropneumatic (HyP) pressure boosting systems. The ‘BoostStar’ system is built with the most advanced features to manage the water ow of high-rise apartments, townships, bungalows/villas, commercial buildings such as malls, hotels and ofce buildings and also for industrial applications. In the context of the increasing water scarcity, the need for water and wastewater management and recycling cannot be overemphasized. A.T.E. provides a comprehensive range of state-of-the art technology solutions for the management of water, and treatment and recycling of wastewater from within the group as well as from various global leaders that it has tied-up with. A.T.E.’s customers include some well-known names such as 15 TEXTILE VALUE CHAIN | Oct -Dec 2013
  17. 17. CORPORATE NEWS from outgoing air & pre-cools the fresh air. Since there is no rotating wheel, there will be no wear/tear, no deterioration of efciency over a time & no cross contamination. Chitale Dairy, Godavari Bio-reneries, Renuka Sugars, Torrent Pharma, Cipla, Jeyavishnu Textile Processors, Indo Rama, Larsen & Toubro, Vatech Wabag, Tata Steel, Voltas, Municipal Corporations of Ahmedabad, Kolkata and Delhi, etc. Many studies point to the greater health & productivity of people working in ofces as well as in spaces that have signicantly higher fresh air component. The higher air volumes of evaporative cooling systems (compared to air conditioning systems) provide greater comfort at higher temperatures. In such situations, in many climates, two stage evaporative cooling is nding a niche today. ENERGY EFFICIENT COOLING SOLUTIONS: Cooling is a major contributor to energy consumption and thus a major source of CO2 emission in the atmosphere. About 40% of a building’s energy consumption is from its cooling requirements. With increasing power scarcity, rising electricity bills and mounting carbon emissions, there is a great need to have energy efcient & eco-friendly cooling systems. The concept of comfort cooling, driven by a commitment for sustainability, is fast catching up in India as is borne out by the impressive list of large corporates who have installed the HMXAmbiators for their ofces and factories. Marquee names include: Volkswagen, Tata Motors, Bosch, ITC, to name just a few. MACHINE-TO-MACHINE SOLUTIONS: “If you can monitor equipment of whatever sort or buildings remotely, then you can ensure that they operate at optimal levels, in turn conserving energy and resources” said Mr Abhay Nalawade, Founder and Managing Director of EcoAxis, the A.T.E. group company in the M2M business. Industrial equipment presents numerous complexities owing to changing technologies, difcult processes, different users, etc., which make the overall equipment optimization a humanly impossible task. This leads to sub-optimization of equipment capabilities and wastage of resources. The machine-to-machine technology platform developed by EcoAxis, precisely addresses this long-standing problem. HMX Systems, an A.T.E. group company, offers comfort cooling solutions, providing comfort with better economy as well as with lower carbon intensity. EcoAxis’ product suite, which is called SuperAxis, captures various operational data based on the pre-determined parameters from industrial plants, equipment and utilities and transmits them to a central server, where the data is analyzed and archived. Based on the analysis, the system triggers periodic or emergency notications to the stakeholders on the machine performance and energy consumption. Just as ‘a stitch in time saves nine’, the timely notications help stakeholders to take necessary corrective/preventive action to not only improve the machine performance, but also optimize resource consumption. The rst of the innovative products developed by HMX Systems was the ‘HMX-Ambiator’. It is a new generation two stage evaporative cooling solution, providing ‘100% freshclean-cool air’ and an energy efcient alternative to conventional air-conditioners with up to 60% energy saving. HMX has subsequently launched HMX-Treated Fresh Air (TFA) & HMX-Economizer. Comfort cooling by the principle of ‘two stage evaporative cooling’ is a concept that is fast catching on. It is a signicant upgrade over air-washer (single stage evaporative cooling) technology in the sense that it either ‘saves power for the same cooling effect as an air-washer’ or ‘provides more cooling and comfort than an air-washer’ for the same power. Further, in case of HMX-Ambiator, moisture addition in the conditioned space is just 50% as that of air-washers. Two stage evaporative cooling is a fresh air solution. So it is optimum for many applications such as factory shed cooling and fringe areas in buildings. Ambiators further protect our environment by not using any ozone depleting CFCs. EcoAxis' solutions have vast applications, e.g., boilers, distilleries, water and waste water treatment plants, foundries, bottling plants, food processing units, power, water monitoring, carbon monitoring, etc. With resource conservation moving to the top of the business agenda, the demand for this application in utilities is growing rapidly. EcoAxis is a pioneer in introducing this innovative technology in India and has gained widespread expertise over the years with the execution of a large number of prestigious projects, which includes remote monitoring of Thermax absorption chillers, CEO dash board for Godavari Bioreneries, thermal power plant monitoring for KSK Energy Ventures, etc ., while many more such projects are in the pipeline. HMX- TFA is an innovative technology product to supply ltered-conditioned-fresh air in designated areas. Highly energy efcient solution for once-through and fresh air cooling applications in industries, such as pharma, foods, beverages, automobiles, etc. It can be used in conjunction with AHUs / large chiller installations for energy saving while treating the fresh air intake in commercial buildings. HMX-Economizer is an energy recovery device & in turn lowers the TR load on AC. It helps in recovering the energy TEXTILE VALUE CHAIN | Oct -Dec 2013 16
  18. 18. Advt.
  19. 19. ADVT.
  20. 20. COVER STORY “Reinventing Textile industry present to you bouquets of articles from different field, areas of expertise people about New Textile the measures required to harness the full potential of the textile industry, which has so far remained tied in knots because of various factors like conflicting claims of different segments of the industry, deficiencies in the economy, need for further government support, adverse headwinds from the developed countries due to economic slowdown. We are confident that our readers will appreciate bouquets of articles we present here. We appreciate your comments and feedback on same. TEXTILE INDUSTRY-GROWTH AND STRATEGIC PERSPECTIVE faces is overcome. Dr Ritu Dewan, Director & Professor Department of Economics University of Mumbai The problems of the textile industry have its roots in a complex set of factors; including government policy, lack of modernization, diversification of company funds by mill owners, the growth of the power loom sector using the facilities and subsidies set aside for encouragement of handloom industry. And thus an industry with huge potential and totally self-sufficient indigenous capacity, e.g. Raw material (cotton), machinery, labour and a vast market, sank into messy crisis. Dr. G Bharathi Kamath, Associate Professor Department of Economics University of Mumbai In the year 2010-11, the mill sector contributed 4 percent to the production, the share of Powerloom sector, Handloom sector, Hosiery sector and Khadi / Wool & Silk was 61, 11, 23 and 1 percent respectively. The exports of clothing & cotton textiles together were US $ 21500 of the total US $ 32350 for the year 2011-12. The textile industry employment in the year 2011 was 45.19 million and is projected to reach 52 million by 2016-17. The allied industry is a major source of employment with figures of 60.2 million in the year 2011, projected to reach 69 million by the end of twelfth plan period. Editorial Note For laying down the roadmap for the growth of the textile industry in the Twelfth Plan, it is necessary to know the views of economists and academia. An article from Dr G. Bharathi Kamath, Associate Professor and Dr Ritu Dewan, Director and Professor, Department of Economics, University of Mumbai emphasizes on larger subsidies and policy support for the informal sector and SMEs. The economists are of the view that, with China emerging as the selfconsuming economy and because of other factors like appreciation of their currency and the increase in the cost of production, India has a good chance in the international market. - Consulting Editor There is a dominance of the decentralised powerloom and handloom sectors in the textile industry, which are mainly small and medium scale enterprises. In fact, many of the large textile companies are also conglomerates of medium sized mills. Statistics released by the Ministry of Textiles shows a highly fragmented industry, except in the spinning subsegment. The organised sector contributes over 95% of spinning, but hardly 5% of weaving fabric. Small Scale Industries (SSIs) perform the bulk of the weaving and processing operations. There are no two opinions about the significance of textile industry in India in terms of its contribution towards output, employment and exports. To present a quick over view, the sector contributes 14 percent to the industrial production, 4 percent to GDP and 17 percent to the export earnings of the country. It provides direct employment to more than 35 million people. The growth and all round development of this industry has a direct bearing on the improvement of the economy of the nation. According to the working group of planning commission on textile industry, the potential for significant growth in the Indian Textile Industry is undisputed. • The paradox that is observed is that inspite of higher contribution of informal sector and SME’s as compared to large industries to production, export earning and employment generation, the extent of subsidies in terms of credit and policy benefits that they actually reap is least and this one major aspect that requires serious and immediate intervention from government. Textiles is one of the largest component of India’s exports and can grow further and faster. • The schemes offered by government for this sector ranges from welfare schemes, e-marketing schemes, skill development, credit and financial packages. Besides providing various schemes, there are various other statutes, including fiscal policies (governing customs, excise, sales tax, etc.), rules, initiatives, incentives, etc through which government extends support to the industry. There are enormous opportunities for employment creation in this sector. This is one sector where the competitiveness can be developed quickly at minimal cost. However it is possible only when the multitude of problems and several contradictions that this industry Lack of finance and poor technology is one of the oft repeated 19 TEXTILE VALUE CHAIN | Oct -Dec 2013
  21. 21. COVER STORY and discussed problems about the textile industry; it is argued that the large unorganized sector has poor capability to raise its productivity, volumes and quality standards owing to poor access to latest technologies and finances. The paradox is that the requirement of the funds could have been easily be selffinanced, but the contradiction is that the newer generation mill owners had diverted funds indiscriminately from textile mills into newer and more profitable industries, without long term business interests. There was hardly any ploughing back of profits into modernising and replacing the old and worn machinery. be essential for SMEs to align with these firms that can ensure a market for their products and new orders. The focus should be on research and development; India does not have expertise in synthetic yarn manufacturing, which is more durable than cotton and jute and demand for which is growing very fast in the market. Though some interest has been shown by manufacturers in India, it has a huge potential which needs to be tapped. The SMEs in the powerloom and handloom sector will face significant churn in the future. Spinning mills that account for 95% of the yarn and fibre production, will move up the value chain into weaving. This will erode the viability of the hitherto protected powerloom and handloom operators numbering over 400,000, who have remained insulated from competitive forces so far. A possible remedy could be for these weavers to align with bigger players or integrate operations that would ensure off-take of their products. Another crucial aspect closely related to the former is on the textile mill land, which is a pot of gold. The mill owners claimed that they need to raise money for urgently needed modernization of their outdated machinery. Over years there has been a lot of tussle between the mill owners and workers w.r.t. land issues. The money so raised was never used for the technical progress either in terms of modernization or upgradation of these industries. This had its impact on lower levels of productivity as well as profitability of the industry over years. This is another contradiction that inspite of having a financial capabilities for technological upgradation, due to lack of effective management and timely interventions, an opportunity was lost. Another aspect in the international market is that China is viewed as a competitor to Indian textile industry. It must be noted that China is the leading sourcing base for textile and apparel with a majority share of about 35% of global exports. However, rising labour cost and fast ageing population is one of the greatest challenges that is being faced by Chinese textile industry. China has also become a self-consuming economy due to increase in per capita income and the consequent increase in domestic demand; also the Chinese currency is appreciating over a period in the recent years. These factors would definitely have a negative impact on its textile exports. Indian industry must take this into account and try and capture the international market. In the international market, India boasts of a strong raw material production base, a vast pool of skilled and unskilled personnel, sizable supply of fabric, cheap labour, good export potential and low import content as some of the salient features and strengths of its textile industry. This is a traditional, robust, well-established industry, enjoying considerable demand in the domestic as well as global markets. However, at the global level, India’s textile exports account for just 4.72% of global textile and clothing exports. India’s presence in the international market is significant in the areas of fabrics and yarn. Quota constraints and shortcomings in producing value-added fabrics and garments and the absence of contemporary design facilities are some of the challenges that have impacted textile exports from India. A recent report on “benchmarking study of production costs in India vis-a-vis Bangladesh, China, Egypt, Indonesia, Pakistan and Turkey” observes that Indian textile industry has emerged to be competitive over years. The impression that the labour productivity is lower than Bangladesh is false. The textiles sector has witnessed a spurt in investment during the last five years. The industry (including dyed and printed) attracted foreign direct investments (FDI) worth Rs 5,831.02 crore (US& 854.78 million) during April 2000 to May 2013. This trend is welcome and its sustenance over longer period requires conscious effort in terms of provision of sufficient and reliable infrastructure facilities. The potential size of Indian textile industry is expected to reach $ 220 billion by 2020. Retail sector is one of the potential growth sectors, as several international retailers are looking towards India as a potential sourcing destination. There is a marked shift in consumer preferences towards man-made fibre and this change is attributed to the changes in the level of disposable income and consumption pattern. Buyers need to diversify sourcing risk is another factor which would boost export growth. There is a bright future for the industry as it stands with a competitive advantage in terms of raw-material and potential to grow and match up to meet the increasing international demand. The industry has to explore strategies to tap the potential possibilities along with the government’s concerted policy effort to seize the emerging opportunities. The approach Paper of the eleventh planning commission on textile and jute industry also suggests that the private sector, small enterprises and the corporate sector have a critical role to play in achieving the objectives of faster and more inclusive growth, and has laid emphasis on policies aimed at creating an environment in which entrepreneurship can flourish. References: 1. http://planningcommission.nic.in/ 2. www.dnb.co.in 3. http://texmin.nic.in/ Another segment in fabric that is fast growing is the hygiene products. The national market is still in its incipiency stage, however, there is a potential once the market penetrates and grows beyond the urban areas. However, the international market is well developed for this segment. On the basis of its strengths and expected growth in potential segments, India can aim to become a major outsourcing hub for foreign manufacturers and retailers, with composite mills and large integrated firms being their preferred partners. It will thus TEXTILE VALUE CHAIN | Oct -Dec 2013 20
  22. 22. to a large extent. Other segments like weaving, knitting and processing units still remain fragmented. Thousands of units work in backward conditions without access to efcient processes, equipment or timely credit. This has been an inheritance from the earlier years when several aspects of the textile industry had been reserved for the small scale sector and our processes were not geared up for the export markets. In today’s changed context, to face the onslaught of global competition, Indian units have to hasten the move towards integration. Consolidation will help the industry to operate with economies of scale so that it gets viable to infuse new technology, modernise equipment, increase output and improve quality. Mr. K. Chakravarthy, Global Vice President, Heating SBU, Themax Limited. The textile industry has undergone major changes in recent years. From an inward looking industry essentially catering to the domestic market, it has now become a vibrant exporter, bringing in precious foreign exchange. While continuing to be the largest employer in India after agriculture, the industry has also been trying to modernise and invest in plant and machinery to boost output. Though the current economic slowdown in Indian and global markets has slowed the tempo of changes, it is clear that the textile industry is poised on the threshold of an era of transformation. COVER STORY A VIBRANT FUTURE FOR INDIAN TEXTILES...! Automation and modern technology: Several studies have pointed out that by installing modern equipment textile units in India can achieve higher productivity and minimise fabric defects. While the spinning segment has made progress on this front, modernisation is yet to happen in the weaving and related fabric manufacturing, and garment units. Machines to provide higher speeds and wider widths and software to monitor the efciency of operations are prerequisites for units that would like to make their mark in global markets. The process of globalisation has played its part in ushering in this change. Supplying to global players and addressing overseas markets, the industry today is aware of the need to integrate its value chains and to modernise its operations. Underlining the importance of the textile industry in India’s economic life, the Government has also facilitated several welcome changes. Some of the policy initiatives introduced in recent years include the Technology Upgradation Fund scheme, the Technology Mission on cotton, Scheme for integrated textile park, reduction in customs duty to import modern machinery, setting up of apparel training and design centres, 100% foreign direct investment in the sector, etc. These are bound to have a positive impact in the industry. Several textile players have become respectable brands in the global markets. Removing infrastructural bottlenecks: Indian textile industry is seriously hampered by infrastructural bottlenecks. Available and reliable power tops the list of infrastructural essentials. Extended power outages have almost destroyed established textile centres like Coimbatore in Tamil Nadu. While existing units are languishing, any talk of modernisation without access to power will be meaningless. Captive power is an option, but the small and fragmented nature of textile operations call for co-ordination and planning among the various units for a common facility. If common efuent treatment plants can work in textile industry clusters there is no reason why the concept of shared captive power plants cannot emerge as a viable option. Textile associations and apex organisations can take the lead, and with the support of nancial institutions, local government and power developers this option can be the answer to the shortages that plague the industry. For further expansion and growth, the textile industry has several pluses in its favour. In terms of domestic availability of major bres and yarns, India has a strong base in raw materials, being among the world’s leading nations in the production of cotton, jute and silk. As one of the oldest and established industries in India, it has established facilities from spinning mills to garmenting units. It has a rich heritage to sustain the country’s considerable talent in design and fashion. In recent decades, the industry has also gained considerable experience working with global rms. People focus: As millions depend on this sector for their livelihood, we need measures to make the transition to a modernised industry as painless as possible. Thousands of people continue to suffer as a result of the decline of textile units in several parts of the country, especially in Mumbai. Hence, as we move ahead it is important to consider and resolve people related issues with sensitivity, in all aspects ranging from the choice of technologies and changes in labour laws to skill development and the offer of credit facilities. However, the country’s contribution to the world’s textile output is about 3%, underlining the fact that there is tremendous scope for growth. The positive changes and modernisation attempts are not uniform across various segments of the industry or over the regional textile clusters of India. The industry has to scale up its exports and it also has to cater to the growing requirements of a prosperous middle class that has the purchasing power and access to global products. This cannot be done by an industry saddled with issues that hinder its growth. Some of these issues that need to be addressed for the Indian textiles to grow to its potential are briey touched upon: A well planned and comprehensive skill development plan has to go hand in hand with enabling technologies and nancial support for modernisation. Such a programme will prepare the ground for the change in the mindsets of people that is so necessary for transformations. This again calls for an integrated approach involving agencies and people across various sectors. Consolidation and integration of units: At present, it is only the spinning segment of the textile industry that has been consolidated 21 TEXTILE VALUE CHAIN | Oct -Dec 2013
  23. 23. COVER STORY Ensuring internal efciencies: In the age of globalisation, a host of factors such as sourcing, technology, wage structures, governmental support etc. contribute to the competitiveness of enterprises. However, many of these are dependent on extraneous conditions and in the anxiety to inuence them, often the conditions within the industry and within individual units are neglected. Prudent industrial practices show us that there is immense scope for bringing in internal efciencies that can result in incremental savings and add to the protability of operations. to bolster efciencies can help units improve their competitiveness. Water, another essential resource, has already become as critical as power both in terms of availability and quality. Again, textile units can make use of technologies to treat efuent and recycle water for their processes. They can drastically bring down the spiralling cost of water and conserve the nation’s depleting stock of ground water. To conclude, as in every country that aims for the revival and expansion of its traditional industries, the Indian textile industry also will continue to need a supportive policy framework. As indicated earlier, from the government there have been several enabling moves in the last decade, though what has been done tends to fall short of what needs to be done. However, as a changed global economic context persuades every industry to look beyond state support and solutions, it is in the interests of our textile sector also to harness its internal strengths and overcome its structural aws for a vibrant phase of growth. Power shortage is endemic in the country and while grids and captive power plants can alter the overall situation, there is much that can be done internally to conserve this precious resource. On the energy side, fabric manufacturing needs heating, cooling and power inputs and today there are viable technologies like cogeneration and vapour absorption that integrate these inputs to provide optimal efciencies. Energy audits to plug wasteful leaks and targeted retrots and upgrades HR DIMENSION TO THE TEXTILE INDUSTRY Shri. V.Y.Tamhane The India’s job scene is quite gloomy. Although the poverty ratio has come down, it is still a frightening gure. The unemployment ratio which had come down to 6.6 Per cent in 2009- 10, after touching a high of 8.2 Per cent in 200405, once again took a U- turn in 20112012, as per NSSO Report. the mountain, the mountain must go to Mohammed. Cotton textile mills should preferably be located in the midst of a cotton belt. However at such places, the young recruits are bound to be raw hands. Hence, the problem of training will arise. If there is a cluster of a few mills in a cotton belt, it is possible to take a centralized training facility. More often than not, this is not likely to happen. In such cases, individual units will have to adopt TWI (Training within the Industry) method. Under Central Skill Development programme, It is necessary to give suitable grants in both the cases. When the scenario of job market is bleak, it is difcult to understand why the textile industry has been facing paucity of workers. But the fact remains that unavailability of staff is hampering production at many centers. Why this situation? The units working on man- made bres could be located at semiurban areas and here also the Government grant is necessary for training purposes. Many people are of the view that because of the introduction MNREGA, which assures jobs for a certain minimum days in a year at pre-determined rates to at least one member of a family, migration of the workers is reduced. When jobs are available at the doorstep, why should anyone look for pastures elsewhere, at a distant place? Another solution may be to change the stafng pattern. Instead of selecting persons with a minimum level of education, mills/factories may employ educated persons at a slightly higher level. Such persons may require less guidance of supervisory staff, and to that extent it may be possible to reduce the strength of supervisory cadre. Some factories may like to consider this suggestion. Another popular argument which makes rounds particularly in the corridors of power is that the least developed or developing states in the Indian Union have undertaken large programmes of industrialization. Hence opportunities are opening in the home state only. Amendments to Labour Law Women workers are not allowed to work from 10 Pm to 5 am (Next day) as Per proviso to section 66(b) of the Factories Act. There is no point in continuing with this discriminatory provision, as male workers have no restriction. The relaxation can be given, subject to Mills/ factories adhering to conditions to ensure safety and protection and no harassment of any nature to women. There is onereasoning which is seldom considered. With the right to education, there is a considerable spread of education even in rural and far- off areas. Hence in the ranks of the unemployed, the numbers of those who are unskilled or semiskilled may be going down, while numbers of unemployed educated persons may be increasing. ILO allows 50 hours overtime per month while Indian law allows 50 hours overtime per quarter. This anomaly needs to be corrected. Mexico works on a 10 hour basis and the workers enjoy a 5 day week. Even when workers operate on overtime, they still have a day off. Further, the trade unions endorse overtime for the workers. The Ministry for Textiles needs to work with the Labour ministry to resolve this issue. The issue of time exibility also needs to be addressed. Whatever the reason, a solution has to be found out. Solution to the Problem One solution is to start in rural areas. If Mohammed cannot go to TEXTILE VALUE CHAIN | Oct -Dec 2013 22
  24. 24. ADVT.
  25. 25. ADVT.
  26. 26. Consultants have limited knowledge and no practical hands on experience. They claim to have knowledge, but they have conventional textile experience. Mr. MOHAN KAVRIE MD & Chairman Supreme Group Center of Excellence have limited resources and knowledge. In most areas they do not have any knowledge. COVER STORY KNOWLEDGE IS MAJOR HINDRANCE IN TECHNICAL TEXTILES...! Conventional textile experts have knowledge due to long history, Industry of teaching courses, research experience, knowledge imparted though various media, channels, etc. Mr. Mohan Kavrie in his hard hitting interview strongly emphasized that without the availability of knowledge and experienced academic staff, it is difcult to get trained person for technical textiles. This is serious matter & it calls for out of the box thinking to solve the riddle. The current scenario is that the educated goes to the industry to get deeper knowledge, while a person engaged in the industry goes to educational institute in search of knowledge. TVC : Do you recommend a separate degree course for Technical Textiles, with specialization in different branches like Meditex nonwovens, Sports Textiles etc or a combination thereof, where preliminary knowledge of the particular eld would be imparted? Technical Textiles is a highly specialized line of production with tremendous potential. India should not miss the bus, which normally happens. The success of Technical Textiles depends upon original research, availability of trained technicians and workmen, domestic availability of required inputs like man-made bres including lament yarns at international prices and statutory support wherever possible. MK : At international level, very few countries have degree courses in technical textiles. However many have PostGraduate degree courses. Internationally technical textile associations are very strong. They impart knowledge. If we set up degree courses for technical textile, where is a trainer? First trainer should be trained before training / teaching. India is largely depending on borrowed technology. In such a situation India cannot occupy the place of pride in the eld of Technical Textiles. We give below considered views of renonwed expert Mr. Mohan Kavrie, who is father gure of Technical texile industry. TVC : What about statutory support? For example, should it not be compulsory to use re- retardant fabrics in cinema theatres? TVC : How do we create a strong scientic facility for technical textiles? Since the sizes of units are comparatively small, do you recommend Government setting up Research facility or not? Will this require a fund of Rs 400-500 Crore in the 12th plan, if your answer is in the afrmative? Or If your answer is negative, What is your suggestion for creation of a strong Research facility/ facilities. MK : Yes, it helps TVC : What kind of assistance from Government do you expect for Technical textile? MK : Government already done their work, they developed Centers of Excellence and research facility etc. Now the ball is in the court of industry and educationists. MK : This is like a chicken and egg situation, very difcult to answer. Even if government funds are available where are the people ie. Human resource to handle it ? Do we have required type of people it in industry? My answer is No. TVC : Now a days, many industries prefer textiles rather than any metal or other element. What is the reason behind it? MK : Few industry it is mandatory to use Textile, others are for their biological property they use textiles then other elements. In India, civil construction not updated due to corruption. Industry does not want to share their knowledge and research after spending handsome funds on R &D. Academics, professors, persons with doctorates in specialized subjects only have text book knowledge. POLYONE TO EXPAND OPERATIONS IN INDIA PolyOne Corporation, a global provider of specialised polymer materials, services and solutions, is to expand its operations in India. The company has begun construction on a new state-of-the-art facility in Pune, India, that will manufacture speciality materials, including solid masterbatch, liquid colorant and additives. The facility will operate development labs and the sales and customer service centre for the region, and it is expected to open in the rst quarter of 2014. "With advanced design capabilities and enhanced manufacturing exibility, we will offer customers in India an even broader array of solutions and improved delivery times," said Vikas Vij, managing director for PolyOne's operations in India. "Demand for advanced speciality solutions in India is increasing – particularly in automotive, packaging, wire and cable and healthcare – and our expanded presence will position PolyOne exceptionally well to collaborate with and serve our customers." Robert Patterson, executive vice-president and chief operating ofcer at PolyOne, added that consistent with the company’s global expansion strategy, the investment in India augments other recent announcements, including a new joint venture specialty colorant facility in Jeddah, Saudi Arabia, and plans to begin thermoplastic elastomer production in Sao Paulo, Brazil. Reference : www.wtin.com 25 TEXTILE VALUE CHAIN | Oct -Dec 2013
  27. 27. second hand machinery whether it is textile or not while in India such machinery is freely permitted without any restriction. China forced the foreign/European machinery manufacturers to set up their manufacturing facility. As a result, today China is the largest producer of textile machinery producing entire range of hi-tech machinery. Whereas in India, we do not have the entire range of hi-tech machinery. While we are very good in Ginning and Spinning machines, good in Weaving Preparatory and Processing Machines. We cannot produce hi-tech weaving machinery, knitting machinery, garment making machinery, non-woven machinery and other technical textile machinery. MR. S. CHAKRABARTY, SECRETARY GENERAL TEXTILE MACHINERY MANUFACTURERS’ ASSOCIATION (INDIA) The Indian Textile Industry (TI) is critically important to the Indian economy as it contributes 4% to India’s GDP 14% to India’s , Industrial production and 17% to India’s export earnings. Decades ago, it was responsible for 33% of India’s export earnings. It is needless to mention that the Indian TI is the largest employer after agriculture employing 35 million people. There was an expectation that India’s textile and apparel industry (domestic + export) would grow from US$ 70 million to US$ 220 million by 2020. In order to help the TI to grow in the expected manner, it is essential that there is a strong Indian Textile Engineering Industry (TEI) which is capable of producing all types of textile machinery qualitatively and quantitatively to make the textile industry competitive in the world market. The domestic TEI should provide state-of-the-art textile engineering solutions to meet the true growth potential of the Indian textile industry. RENROC STORY COVER MGA TEXTILE POLICY-MEASURES REQUIRED TO HARNESS THE FULLPOTENTIAL OF THE TEXTILE INDUSTRY The Textile Engineering Industry which was the prime mover for the textile industry during 60s, 70s and 80s suffered a serious setback during 90s after the liberalization of import and trade policies of the Government. As a matter of fact, the entire capital goods sector per say was severely affected due to the sudden liberalization. If we look at the developed countries, we will find that the technology and engineering was the prime mover. Every such country has helped their machinery manufacturing sector to grow consistently.However, during the post era of liberalization, the country moved towards import oriented growth, thereby creating a trade imbalance. The future Textile Policy should be- to facilitate unhindered growth of the textile industry with a balanced long term policy right from the raw material to the finished products in a holistic manner. In the past, it was observed that there had been kneejerk reactions from the Government for different sectors of the textile industry which resulted in imbalance and hampered the growth. Therefore right from the cultivation of cotton, production of cotton, its ginning, other raw materials, spinning to the garmenting, a holistic approach needs to be made. There is an absolute need that the domestic textile engineering industry should grow, compete and export. It should be able to provide strong support to the Indian textile industry to make it vibrant and competitive. It should acquire technological strength in all sectors as in the case of Ginning and Spinning through FDI and R&D and meet 70-75% of the demand of Indian textile industry for high tech machinery from the current position of 4045%. India should become a manufacturing hub for textile machinery, parts & components and accessories contributing further to employment generation and GDP . At present, the TEI consist of more than 1,400 units with a total investment of Rs.7,800 crores. The total capacity is only Rs.9,100crore and it provides direct/indirect employment to over 250,000 people. More than 85% of the units are SMEs. The TEI is mainly dependent on the domestic demand as a result, itsuffers periodic highs and lows which can be seen from the following statement:- Some firm policies would be needed for import and export of cotton and yarn which should not be altered except under extraneous emergent circumstances. All sectors of the domestic textile industry should be given complete support to face the international challenges. Every sector needs to get appropriate incentives and financial assistance in a balanced manner for optimization of the overall growth. The industry must have all its inputs such as raw material, consumables, machinery, power and skilled labour, uninterruptedly at reasonable cost. We normally compare India with other countries particularly China and say that why we cannot make ourselves competitive and export oriented like China. The difference between the Indian textile industry and Chinese textile industry is so large and it is not very clear whether we would be in a position to reach the level of 50% of Chinese textile industry. While India has 34 million working spindles, China has above 120 million spindles. In the case of shuttleless looms, we have hardly 1,30,000 shuttleless looms as against 7.20 lakh shuttleless looms in China. The textile production is hardly 10% of the Chinese production of US$ 700 billion. In case of textile machinery our production is at US$ 1 billion as against approximately US$ 10 billion of China. China does not import 26 TEXTILE VALUE CHAIN | Oct -Dec 2013
  28. 28. COVER STORY The TEI is suffering from the issues like lack of level playing field.Duties and taxes are not compensated against imports.Largenumber of SMEs does not have access to funds, lack of modernization and technology upgradation, lack of research & development and skill upgradation, lack of policy supports from the Government. There is an absolute need for modernization of the SMEs in the Textile Engineering Industry. The modernization fund with interest subvention and upfront margin money subsidy is absolutely necessary to upgrade the manufacturing technology of the SMEs to achieve the long term goal. This could be in line with the TUFS for the textile industry. fund should be created for giving grants for acquisition of technical knowhow from overseas. This would facilitate the availability of technology for high tech machinery. The present policy of the Government does not attract FDI in the textile engineering sector specifically weaving machinery sector,the primaryreason being the import of second hand machinery in large numbers. It should be kept in mind that no foreign machinery maker would like to compete with its own machinery which is coming in second hand/used condition. We cannot expect any FDI so long as this policy remains. China produces low tech, medium tech as well as high tech textile machinery. If we desire to manufacture high tech textile machinery, we need to dis-incentivise the import of low tech machinery from China. It is needless to point out that unless the domestic textile machinery makers are able to compete with the Chinese machinery, it would be a futile attempt for them to go in for production of high tech machinery. The domestic machinery manufacturers should be encouraged to manufacture high tech machinery for the weaving sector. For this purpose, the import of parts/components spares & accessories of shuttleless looms including electronic dobby, electronic jacquard should be allowed at nil duty without any condition/restriction whatsoever. This would facilitate fast development of high tech shuttleless looms in the country. It should be kept in mind that such critical parts and components if imported cannot be used anywhere other than in the shuttlelessloom itself. Similar approaches should be under taken for the manufacture of other high tech machines which are not being manufactured indigenously. Competitiveness of an industry comes with a level playing field.Unless the domestic manufacturers are confident to compete, there would be no more investments.Therefore, the future textile policy must have inbuilt provisions for the technological and machinery development in the country so that the cost of investment of the textile industry remains at a reasonable level. One thing is sure, without a vibrant Textile Engineering Industry there could not be a jubilant Textile Industry. Present infrastructure for R&D is inadequate for the promotion of R&D.There should be more infrastructure facility at different clusters in the country in the form of Common Facility Centres. A Our Textile Industry by Shri Manikam Ramaswami, Chairman, TEXPROCIL ( THE COTTON TEXTILES EXPORT PROMOTION COUNICL OF INDIA) This article based on speech deliverd by Shri Manikam Ramaswami at the AGM of TEXPROCIL held on 30th September, 2013. member of the value chain has in discovering the maximum price it can get through global engagement. Our Textile Industry : Over the years, our textile industry in many ways has been seen as a story of Six blind men & an Elephant! Towards this end, certain ground rules need to be identified and articulated for maximizing the benefits for the entire value chain. Setting the Ground Rules: In this connection, texprocil has articulated certain ground rules as follows : Texprocil has the responsibility to promote the exports of the entire value chain are the starting point to having a harmonious growth in textile exports. 1.All members of the value chain should have unrestricted ( quantity) access to international markets and prices. Thus, for the effective functioning of TEXPROCIL, it is important to comprehend the basic nature of the industry, resolving the apparent differences through data and logic, setting ground rules and forging an agenda for action based on inclusive and equitable growth of all the segments of the textile value chain. 2.Each exporting member of the value chain should get its raw material at equal to or lower price, than the international value adding companies ( net of the component of drawback associated with its raw material.) The Basic Facts of our Industry If we ensure that the above two are in place, then we would have put in place the safeguards to have The beauty of the vast textile industry in India lies in the fact that the output of each member of the value chain can be exported. Intermediary products such as ginned cotton, cotton yarn, cotton fabrics are all as much exportable as the finished “cut & sew” products. For complete speech please log on to : www.textilevaluechain.com and read more about, Studies on benchmarking of production costs, attaining global competitiveness, Export Promotion Schemes: Need for Greater Logic, Showcasing our competitiveness- Evolving Strategy, Need to create positive image. At each level of the value chain we have in excess of 30% surplus capacity after meeting the domestic needs. Each member of the value chain therefore looks at the world at this market & aspires to have all the advantages that the next TEXTILE VALUE CHAIN | Oct -Dec 2013 27
  29. 29. COVER STORY OPPORTUNITIES AND CHALLENGES FACED BY THE INDIAN TEXTILE ENGINEERING INDUSTRY The global market for textile machinery was estimated at USD 30 billion in 2010 and there has been a steady improvement in the new investments in primary textile manufacturing, mainly in Asia, in the last three years. After China, India emerged as the second largest investor in textile machinery. This trend boosted the competitiveness of the textile industry in terms of productivity, quality and cost. Mr. Navdeep Singh Sodhi Partner Ghrezi Textile According to ITMF (International Textile Manufacturers Federation) Shipments of short staple spinning machinery reached a peak in 2010. From a low level of 7.1 million spindles in 2009, shipments reached 14.3 million in 2011 before dropping to 10.5 million in 2012. On an average, India has been adding 2 million spindles in recent years. As a result of constant investments, today over 40% of India's installed spinning equipment is considered fairly modern. Personal Prole Mr. Navdeep Singh Sodhi is a textile industry economist with 25 years of international experience.His expertise includes strategy, technology and international trade and investment. He consults for international development institutions and the corporate textile industry organizations worldwide. He contributed to the formulation of the perspective plan for Indian textile engineering industry (TEI) and conducted an international benchmarking study to evaluate the competitiveness of the Indian textile industry for TEXPROCIL. Mr. Sodhi is a partner with Gherzi Textil Organisation, Switzerland. Organisation Prole Gherzi is a leading industrial consulting company founded in Zurich in 1929. With its global presence the company offers integrated and independent services to the textile and garment industry in the elds of strategic management, international benchmarking, engineering, technical textiles ,logistics and nance. Gherzi has over 50 years of presence in India which was recently strengthened through its subsidiary Gherzi Consulting Engineers Pvt Ltd. Investments in downstream processes such as weaving and knitting witnessed a surge in recent years. Shipments of shuttle-less weaving machines jumped 43% from 107,000 in 2010 to 154,000 in 2011 before dropping to 86,000 in 2012. India's investment in modern weaving machines has signicantly improved as reected in increase in shipment of 10,198 machines in 2012 against 3,464 machines in 2009 (ITMF). However, there is still a tremendous potential for India's weaving industry to retool and expand. Worldwide shipments of new circular knitting machines increased from 28,000 in 2011 to 36,000 in 2012, 92 % of which were in Asia. India installed 1200 new circular knitting machines in 2012 preceded by 1470 machines in 2011. This was however dwarfed by China's 29,000 machines installed in 2012. Global competitiveness of the Indian textile industry A recent international benchmarking study conducted by Gherzi Textil Organisation which was commissioned by TEXPROCIL and released by the Union Minister of Textiles clearly established that the global competitiveness of the Indian textile industry had improved in the last ten years. The factors responsible for the competitiveness included factor costs such as power and wages,age of technology and equipment, raw material cost and macroeconomic factors such as exchange rate. The study highlighted the positive impact of government policy, especially TUFS, on improving the industry's long term competitiveness. Evolution of the textile machinery industry The global textile machinery has been evolving in the last one hundred years much like the textile and clothing industry. The industry moved closer to where the production of textiles took place. Historically, England had a strong textile machinery industry to meet the requirements of its large domestic textile industry. In 1900 England had 45 million spindles of the global installed capacity of 105 million spindles. India had 4.5 million spindles and there was negligible industrialized spinning activity in China.Altogether, the spinning capacity was concentrated in the West i.e., UK, Europe and USA. In 1980, when the global installed spinning capacity reached 158 million, spinning capacity in the U.K., had declined to a mere 1.7 million spindles. Fast forward into 2010, China and India had 115 million and 44 million of the world's installed capacity of 240 million spindles. During this period, the textile machinery TEXTILE VALUE CHAIN | Oct -Dec 2013 28