TEXTILE VALUE CHAIN JULY- SEP 2013 ISSUE

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TEXTILE VALUE CHAIN JULY- SEP 2013 ISSUE

  1. 1. July - September 2013 2 2 68 Need For CREDIT RATIN G
  2. 2. ADVT.
  3. 3. Kriplon Synthetics Pvt. Ltd. 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.
  4. 4. Ratan GIitter Industries Limited PURE SILVER ST YARN PURE SILVER "M" TYPE YARN Polyester Metallized Pure Silver Yarn, highly used on Schiffli Embroidery Machines and Computerized Embroidery Machines. Also used in hand embroideries. It is widely used for tapestry and made-ups. We manufacture Pure Silver “M” type metallic yarn for making ST type rounded pure silver yarn. Our range of product includes non-resistant and resistant yarns to dyeing and finishing procedures. Pure Silver M Type Metallic Yarn produced in 12 Micron and 24 Micron in different cuts of 1/69, 1/85, 1/100. These are capable of running on high speed weaving, knitting and circular knitting machine. Pure Silver MX Type Metallic Yarn produced in 12 Micron and 24 Micron in different cuts of 1/69, 1/85, 1/100. The core yarn is Polyester or Nylon. These yarns are capable of running on high speed weaving, knitting and circular knitting machine PURE SILVER "MX" TYPE YARN Along with pure Silver Metallic Yarn, we also produce ST and Zebra Type Yarns in fluorescent, rainbow and Several other Colours. These are hightly used in computerized embroidery machines, circular Knitting and weaving Machines. METALLIC YARN
  5. 5. In the recent reshuffle of the Union Cabinet, the burden on Shri Anand Sharma, Hon’ble Minister of Commerce and Industry has been lightened by transferring the additional portfolio of textiles, which he held as an interim arrangement. Dr. K.S. Rao has taken over as the Hon’ble Minister of Textiles as of June 19, 2013. TVC is indeed very happy and delighted to convey its best wishes to the new minister. Within a short span of ten days after he was sworn in, the Hon’ble Minister made it a point to interact with all the stakeholders of the industry. The addresses delivered by him at such meetings make it abundantly clear that the Hon’ble Minister is bound to be successful in putting back the textile industry on the fast track, despite sluggish economic climate in the USA and EU, two major importers of textiles. Sooner or later, two major issues will have to be tackled by the Union Ministry of Textiles, under the guidance of the Hon’ble Minister. One issue is how to promote exports of man-made fibre textiles and clothing. At the global level, man-made fibres, with a share of 60% reign in the consumption basket of fibres for the manufacture of textiles and clothing. Despite such a strong preference, man-made fibre textiles and clothing accounted for only 31 % in the Indian export basket, while cotton textiles and clothing accounted for the lion’s share of 69 % in 2012-2013[April – February] Grand Welcome to the new Union Minister of Textiles When cotton and man-made fibres are spun on the same system of spinning yarn, when the technology of weaving and processing is same, when the cost of labour, and power is same at a given textile centre and when the cost of finance is same everywhere, how come cotton textiles and clothing march over man-made textiles and clothing in the international market? The answer is simple. Cotton textile industry gets its raw materials at or below the international price. Unfortunately, the man-made textile industry by and large is not getting its inputs at international prices. The international price is the price at which our competitors in other countries get raw materials in their factories. Various strategies can be thought of to bring domestic prices in alignment with international prices, such as sector-specific scheme for abolition of excise and customs duties on inputs of man-made fibres, withdrawal of excise duty on man-made fibres, retention price scheme etc. The second issue is export policies for different segments of the textile value chain. Once India has accepted the policy of liberalization, the export policy has to be the same for all segments. In other words, the policy set-up cannot be dismantled as per demands of individual segments. The only solution is increased production throughout the value chain. Only in a real crisis situation, a different line of action can be charted. The industry is in the safe hands of the new Hon’ble Minister who considers growth and development of the textile industry as his mission. Dr. Kavuru Sambasiva Rao, Union Minister for Textiles
  6. 6. Regd. Off.: 191/ 5-C, Mittal Ind. Estate, Andheri (E), Mumbai-400 059. Tel.: 2850 3106 / 1568 Fax: 2850 0124 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.
  7. 7. Editor & Publisher Ms. Jigna Shah Chief – In – Editor Ms. Rajul J. Shah 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) Check Men’s wear colour Forecast : Fall - Winter 2013-14 Colour Forecast Pic. Courtesy Fall 2013 Prada Runway CONSULTANT / ASSOCIATION Mr. Avinash Mayekar, MD, Suvin Advisor Pvt. Ltd. Mr. Shivram Krishnan, Senior Textile Advisor Mr. G. Benerjee, Management & Industrial Consultant Mr. Uttam Jain, Director- PDEXCIL; VP of Hindustan chamber of commerce Mr. Jaykrishna Pathak, President, Bombay Yarn Merchant Association & Exchange Ltd. Mr. Shiv Kanodia- Sec General, Bharat Merchant Chamber EDUCATION / RESEARCH Mr. B.V. Doctor - HOD knitting, SASMIRA , Dr. Ela Dedhia- Associate Professor, Nirmala Niketan College Dr. Mangesh D. Teli – Professor, Ex.HOD & Dean ICT (former UDCT) , Dr. S.K. Chattopadhyay,Principal Scientist & Head MPD, CIRCOT Dr. Rajan Nachane, Retired Scientist, CIRCOT Editorial Advisor Shri V.Y. Tamhane Advertising & Marketing Md. Tanweer Creative Head Ms. Rajul J. Shah Graphic Designer Interactive Technology 7 National News 8 & 9 Government News Letter to PM & Textile Committee Prs Rls Textile Ministry News & BTRA News 9 & 10 Corporate News ATE & RIETER, BIRLA & LENZING 12 Skill Gap Analysis Emerging Trends in Skill requirement 14 Fashion Forecast Men's Colour Forecast: Fall- Winter 2013-14 16 College Focus: Parsons Mumbai CMAI- National Garment Fair Report 18 Cover Story: Need for Credit Rating Interview with India Rating / Fitch, CRISIL, CARE 22 Corporate Profile: Bombay Dyeing Interview with Mr. Durgesh Mehta, Jt. MD & CFO 26 Fibre Focus Birla Cellulose (Reprinted) 30 Post Show Report : Fabric & Accessories 2013 AEPC Press Release 31 Post Event Report CIRCOT Pre Commercialization Workshop SDC Conference Report 33 Yarn Focus Interview with Everflow Petrofil & Collaboration: Suvin Advisor & Wadia Techno 35 Spinning of Banana Fibres on CIRCOT – Phoenix Charka 36 Technical Textile Focus Intelligent Textile, Smart Fabrics 41 Fabric Focus Electrolyte- Free Dyeing with Cationic Reactive Dyes 44 Fabric Report: Prices of Grey Fabric 47 Garment Focus Changing Trends of Leg wear in Women's Wardrobe 51 Retail Focus Bubble Blast Theory of Consumer Acceptance 54 Textile Machinery Indian Textile Engineering Industry today 57 Environment Focus Role of Carbon footprint in Textile & Apparel Industry 60 Self Management Managing career, life & Education, A skill based Approach 64 Pre Show Report Screen Print India 2013 TechTextil 2013 66 Tradeshow Details EDITORIAL TEAM
  8. 8. ADVT.
  9. 9. DyeingunitsfeedRiverCauverywitheffluents June, M.K. Ananth for The Hindu Effluents being discharged into River Cauvery at Pallipalayam.— Photo: M. K. Ananth With the water from Mettur dam hardly reaching River Cauvery in Namakkal district, Tamil Nadu, the effluents discharged from the unauthorised dyeing units in Pallipalayam and Komarapalayam into the river has become its only source of water. “Anyone crossing the bridge that connects Erode and Pallipalayam can easily see the extent of pollution caused to the river”, says environmental activist R.K. Madeshwaran. Pallipalayam and Komarapalayam towns developed primarily because of the large number of power looms, handlooms and textile processing units such as dyeing units. “But the people are suffering without water and continuing pollution is adding to their woes”, he adds. People living in villages in and around the two towns say that they are unable to use water from open wells and bore wells due to the large scale pollution that has changed the colour of the water. Evengroundwaterintheareaispolluted:residents “The impact was not so high when water was flowing in the river as the dark coloured effluents were washed away by the force of the water”, says K. Raja of Indra Nagar in Pallipalayam. About three months ago the district administration made an announcement through revenue department officials, asking persons running dyeing units in Pallipalayam, Komarapalayam and nearby areas to stop operation of the units, in a bid to put an end to large scale discharge of effluents into the river – till water released from Mettur Dam became normal. A few units were also evicted for not taking the announcementseriously. On April 19, the Tamil Nadu Pollution Control Board team led by District Environmental Engineer, M. Murugan, raided an illegal dyeing unit in an agricultural field at Kokarayanpettai near Pallipalayam. The landlord opened fire on them but they luckily escaped. The police registered a case and arrested the accused. Since then, the TNPCB has not initiated major action against any polluting dyeing units. S. Saravanan of the Association of People’s Welfare Organisations in Komarapalayam says that the dry river has made it easy to identify illegal dyeing units as they can easily follow the path through which the effluent flows into River Cauvery. Solar lanterns to be given to weavers Bhubaneshwar, June 10, The Hindu In a bid to facilitate illuminated workplace, the State government has decided to supply 10,072 units of solar lanterns to handloom weavers during 2013-14. Handloom industry, second largest cottage industry next to agriculture in the State, employs 1.03 lakh weavers. As per Handloom Census-2009, there are 40683 weaver households comprising 103158 weavers and allied workers engaged in the profession. The government plans to cover 10,000 families every year. The solar lantern designed by Odisha Renewable Energy Development Agency (OREDA) would be given to each weaver family. However, the government has made a priority list of beneficiaries. Weavers working in areas which are yet to be connected with electricity or suffering from low voltage problems would be given preferences. Similarly, weavers belonging to weaker section would be assisted on priority basis. Directorate of textiles and handloom will be nodal agency for distribution of solar lanterns. According to a top official, the process of weaving involves handling of fine yarn with colour of various shades continuously for longer period. Highest 2,900 solar lanterns will be distributed in Bargarh district and Sonepur has second largest share with 1,250 lanterns. Indian Govt may further relax FDI rules in MBRT: Minister June 17, Fibre to Fashion The Govt of India may further relax or simplify guidelines for foreign direct investment (FDI) in multi-brand retail trading (MBRT), Minister of Commerce and Industry and Textiles, Anand Sharma, has said. The Indian Govt opened doors for multi-brand retailers around nine months ago, allowing 51 percent investment through FDI route, but the policy has not received expected response from foreign retailers, who have so far stayed away. Last week, the Government issued some clarifications related to 30% sourcing and back-end infrastructure, but these too failed to generate any positive response from foreign retailers. If the foreign retailers have any other issues in mind, the Indian Govt is receptive and it would further bring clarity to the guidelines, because the objective of the policy is to attract FDI, Mr. Anand Sharma told reporters. Mr. Sharma said, he would be chairing a Retail Round Table on June 27, which would involve participation of CEOs of Indian companies as well as foreign investors. The Round Table would seek views of the participants on issues related to implementation of the FDI Policy and address their concerns, if any. The news of this conferenceis not yet out. The Minister said that any proposal received by the Govt for FDI in MDRT would be fast-tracked.  7Textile Value Chain | July -Sept 2013 NATIONAL NEWS
  10. 10. LBT IN MAHARASHTRA – ONE MORE COMPLICATED TAX WINDOW, CAUSE OF BIG OBSTACLE FOR INVESTMENTS Please refer to your meeting with Hiromasa Yonekura, chairman of Japan India Business Leadership Forum on 28th May 2013, who pointed to you the differences in tax regimes of each state and the complicated tax structure were big obstacles for investments in India. You were candid in acknowledging that the state governments belonging to non-UPA parties were not in favour of surrendering their tax power in favour of the GST. Your ambitious vision of tax reforms & tax simplifications could not be implemented due to opposition from other political parties. Well, in reality, you will be shocked to note that your flag ship state ‘Maharashtra’, ruled by Congress, is working contrary to your vision. It is implementing LBT, in place of Octroi, which over a period of time, every country and every other state in India has abolished. Your UPA partners, opposition and the masses are against it, but your party CM, alone, is adamant on LBTs’ implementation. The Maharashtrian’s plea, of generating additional revenue, if required, to be collected along with VAT, has fallen on deaf ears. LBT is obnoxious & creates another tax collection authority leading to localized, unchecked corruption, which will add to inflation, deter investments, and is anti - people. The Hon’ble Chief Minister has been misguided by the legislative machinery of the state by reasoning that autonomy of municipal corporations will end, if single window tax, VAT is enlarged to abolish Octroi or LBT. Truth – Other states have seamlessly adopted single window tax structure without compromising on autonomy. There is very thin line between autonomy and factionalism. Such factionalism will only weaken our country. Dividing our country religion, culture, region, language, etc. will eventually lead India nowhere. Truth – Your talks of Tax reforms & simplification will take a major hit and Maharashtra will further fall from 2nd position to lower position. We have been begging to all, local MLA’s, MP’s, Smt. Sonia Gandhi, Shri Rahul Gandhi, Sri P. Chidambaram, but there is no response. Democratic interaction, discussions with concerned, are very basis of democracy. It is heartening to note that the letters sent to various government functionaries are not even been acknowledged. It’s a sorry state of affair and the Foreign Investors, when made aware of this ground reality will only confirm the gradual deterioration of Maharashtra. We request you to kindly look into this matter, on merits and request Maharashtra Government to withdraw octroi & do not impose LBT, in its place. If there is revenue shortfall, please increase in VAT. By adding LBT window, you are adding fuel to fire and complications will lead to further corruption. The people of Maharashtra will never forgive this final nail in coffin, for centuries to come. We propose to take this issue to numerous Foreign Investors, global organizations at various forums.   st Excerpts of Letter dated 1 July, 2013 from Shri Shiv Kanodia, Honorary General Secretary, Bharat Merchants'Chamber ( BMC), Mumbai to Sri (Dr.) Manmohan Singh ji, The Hon'ble Prime Minister of India Textiles Committee (TC), a statutory body, under the Ministry of Textiles, was set up to promote quality in Textile Trade & Industry. TC provide services like Textiles Testing & Technical Services, Quality Appraisal of textiles & Export Promotion, Consultancy on ISO 17025 (QMS), 9000, ISO 14000, SA 8000, and Training to industrial & Educational institutes, through its vast network of 30 regional offices and 16 Laboratories scattered all over major textile clusters of India. All 16 labs of TC are committed to the timely disposal of testing activities and also maintain the confidentiality of test results. Wherever required, the labs invite the customers to witness tests and have indisputably demonstrated the repeatability of test results. 9 of TC Labs are notified by DGFT for testing of import consignment received from different customs. TCs labs, in order to become more efficient in its routine activities, have initiated a pass book system wherein any customer can deposit certain amount as advance payment depending upon their volume of transactions. Test charges of a pass book holder will be deducted as soon as tests are over and the test report will be automatically forwarded to respective customs. This will reduce the effort of customers to wait till the test is over to ascertain and make the payment for further action. In order to become more transparent, TC labs, in its routine activities are implementing Laboratory Information Management System (LIMS). TC’s Mumbai lab has already implemented LIMS and is now working on it. In this system samples received from any source is registered on LIMS. Then the sample is taken for testing and for further action. Status of samples at any stage can be monitored by designated officials. Along with this, lab has also initiated a digital display of information related to receipt of sample, status of sample such as testing, dispatch, payment, etc. This information is helpful to the customer to know the status of the sample. This display system was inaugurated by Hon’ble Chairman of Textiles Committee, Shri S.P. Oswal on 8th May ’13 at Textiles Committee’s Sample Counter. While inaugurating the new facility, Shri S.P oswal appreciated the efforts taken by the TC. He urged it to be more customer friendly and linking of LIMS information on to TC website. The Secretary of TC, Dr.P. Nayak and other members of the Committee also graced the occasion.  Pic: Hon'ble Chairman of Textiles Committee Shri S P Oswal inaugurating the LIMS Display facility LETTER TO GOVERNMENT ONLINE QUALITY STATUS REPORT THROUGH LIMS BY TEXTILE COMMITTEE Pic: Sri (Dr.) Manmohan Singh ji, The Hon'ble PM of India 8 Textile Value Chain | July -Sept 2013
  11. 11. ShriAnandSharmaLaunches21NewTextileParks The ex- Union Minister for Commerce, Industry and Textiles, Shri Anand Sharma, before finishing his tenure, launched 21 New Textile Parks approved under Scheme for Integrated Textile Parks (SITP). The SITP’s have been instrumental in development of wide range of models for green field clusters from a 1000 acre FDI driven integrated cluster, to a 100 acre powerloom cluster and a 20 acre handloom cluster. Under the scheme, 61 parks have been sanctioned – 40 projects were started in the 11th Five Year Plan and another 21 projects are to be implemented in the 12th Five Year Plan. Out of the 40 parks sanctioned earlier, a total of 25 Parks are already operational. Most of the balance Parks are expected to be completed during this financial year. The estimated employment generation is over 10 lakh persons with total estimated investment of Rs. 27, 562 crore. Shri Sharma also released a coffee table book on SITPs. The book encapsulates the broad features of various ITPs set up all over India and is a ready reference for the same. The book gives a brief physical and pictorial status of each ongoing Park approved under SITP. He also released a short film on SITP and visited a photo exhibition that was created to mark the event. Out of the 21 new parks, six are in Maharashtra, four in Rajasthan, two each in Andhra Pradesh and Tamil Nadu and one each in Uttar Pradesh, West Bengal, Tripura, Karnataka, Gujarat, Himachal Pradesh and Jammu & Kashmir. In this year’s budget speech, the Finance Minister announced an additional amount of upto Rs. 10 crores per park for setting up apparel manufacturing units for the projects under the SITP. Necessary action is being taken for implementing the announcement. HandloomSilkIndustryinAssam The Govt is aware that silk handloom industry in Assam is passing through a difficult phase. Assam does not produce required quantity of mulberry silk as per the demand of the its consumers. Mulberry silk yarn is supplied by the traders from other parts of the country, due to which consumers have to purchase yarn at higher rates from the open market. In Assam, few silk fabric traders have been doing business by producing the Assamese dress materials, particularly Mekhela- Chadar of mulberry silk at the weaving units outside the State with Assamese traditional patterns and designs. As a result, the local producers have protested for importing such hand woven silk fabrics from outside the State. To address this issue, the state Govt has constituted a Committee to look into their grievances. In order to promote Mulberry, Eri and Muga silk production in Assam, Govt through Central Silk Board is implementing a centrally sponsored scheme viz “Catalytic Development Programme” (CDP) in collaboration with State Sericulture Department of Assam. Under this scheme, financial assistance is provided to the stakeholders of silk industry through the State Sericulture Dept. The components under CDP envisage development and expansion of host plant, support for seed production, development of farm and post cocoon infrastructure, up-gradation of reeling and processing technologies in silk, enterprise development programme, support for extension and publicity etc. Rs. 10319.11 lakh Central assistance has been provided to Assam under CDP during the XI Plan period for the development of silk industry, including mulberry, eri & muga. To increase the number of trained qualified weavers, a number of skill upgradation programmes have been implemented through various schemes like cluster projects and group approach projects under Integrated Handlooms Development Scheme (IHDS). Besides, the State Govt has been imparting training to the weavers through 102 Handloom Training Centres and 4 Handloom Training Institutes every year. Central Silk Board, Ministry of Textiles is implementing Silk Mark scheme through the Silk Mark Organization of India for popularizing the products made of pure silk to protect the interest of consumers. Silk Mark is a quality assurance label attached to the products made of pure silk and is applicable to all the silk products made of pure silk covering all varieties of silk viz. Mulberry and Vanya (Tasar, Eri & Mugs) silks. Under the Silk Mark Scheme, there are 177 authorized users in NE region, including Assam, who uses Silk Mark labels. Further, Muga Silk of Assam, has been registered under Geographical Indications of Goods (Registration & Protection) Act, 1999.   BTRA r e a c h e d a Memorandum of Understanding ( M o U ) w i t h CSIR- Central Road Research Institute (CRRI), New Delhi on 22nd May, 2013. A signing-in ceremony took place at BTRA that is attended by Dr. S. Gangopadhyay, Director, CSIR-CRRI and Dr. A.N. Desai, Director, BTRA. MoU on Geotextiles between BTRA and CSIR-CRRI The purpose of this MOU is to create a framework for collaboration between CSIR-CRRI and BTRA with the following objectives. I) To establish close linkage and functional coordination between CSIR-CRRI and BTRA. ii) To work collectively for the sector in Geosynthetics particularly Geotextiles for road and transportation sector. iii) Mutual sharing of resources to accelerate the use of Geotextiles in road construction and maintenance including usage of library at both the end. iv) Submission of the joint proposals to MORTH/NRRDA on comprehensive evaluation of Geotextiles.  9Textile Value Chain | July -Sept 2013 News from the Textile Ministry
  12. 12. 10 Textile Value Chain | July -Sept 2013 Rieter is a leading supplier on the world market for textile machinery and components used in short staple fiber spinning. Based in Winterthur (Switzerland), the company develops and manufactures systems, machinery and technology components used to convert natural and manmade fibers and their blends into yarns. Rieter is the only supplier worldwide to cover spinning preparation processes as well as all four final spinning processes currently established on the market. Rieter has 18 manufacturing locations in 10 countries. Texgiulia becomes Com4®rotor Yarn Licensee The Italian company, Texgiulia, is committed to yarn quality spun on Rieter rotor machines type R 60. In order to optimally promote the yarns, the company decided to become a Rieter yarn licensee for rotor yarns. The ceremonial presentation of the Com4®rotor certificate took place mid-March 2013 at the company’s headquarters in north Italian Rovellasca-Como. The fully-integrated open-end spinning plant Texgiulia is part of the Italian Gabel Group and is one of the leading manufacturers of bedding and home textiles in Italy. The company generates its complete added value domestically – starting from yarn production up to the product sales through its own distribution network. First and foremost, Texgiulia produces for its own requirements. By the acquisition of further Rieter R 60 rotor spinning machines, the A little over a year after Zimmer tied-up with A.T.E. for the marketing and sale of Zimmerdigital printing machines in India, Zimmer Austria has also entrusted A.T.E. with the marketing, sales and after sales service of its entire range of printing machinery including rotary screen printing and flat-bedscreen printing machines. Zimmer, the world leader in printing technology, manufacturers a complete range of machinery for textile and carpet finishing covering digital printing systems, flat screen and rotary screen printing, coating, steaming, washing, and drying in its plants situated at Klagenfurt and Kufstein. Zimmer rotary screen printing, Rotascreen, is equipped with a m a g n e t i c squeegee system and is modularly constructed, thus allowing for a wide spectrum of a p p l i c a t i o n s . Rotascreen enables top quality results with single or multi-colour printing on different substrates such as home textiles, fashion fabrics, automotive, and other materials. Zimmer flat bed m a c h i n e , Magnoprint, is a well proven flat bed screen printing machine successful world wide. Its magnetic system a n d r o l l r o d technology in the longitudinal direction enables single or multi-colour printing on different substrates such as flags, home textiles, banners, towels, blankets, and automotive technical textiles Zimmer triple coat is a c o m p a c t c o a t i n g machine with precision back roll and is equipped with knife, screen, and slot coating unit for different substrates such as textiles, paper foil, nonwoven, fibre, glass, tissues and other innovative materials. With an expanded portfolio in printing solutions, A.T.E. now provides the full range of the latest technologies in processing and caters to the end-to-end needs of all processing customers.  Rotascreen Magnoprint, plant now has a sufficiently large capacity to also produce yarns for third parties. The Rieter yarn license for high-quality Com4®rotor yarns thus offers Texgiulia the optimal promotion platform to win new customers for rotor yarn in future and to develop customer relationships. The ceremonial presentation of the Com4®rotor certificate was held mid-March at the headquarters of the Gabel Group in Rovellasca-Como (north Italy). In the presence of Dr. Emilio Moltrasio (Delegate of the Board of Directors and Partner in the Gabel Group) and Sergio Zonca (Technical Director General of the Gabel Group), Rieter sales engineer Matthias Stuessi handed over the certificate to the Management. With the yarns, spun on the new R 60 rotor spinning machines, Texgiulia was able to further increase the already very high quality standard of the yarns and substantially improve the running properties in its own weaving unit. Yarn purchasers will also profit from this quality in future. Rieter actively supports and promotes the supply sources of licensed yarns, one of the measures being a direct link on the Rieter website to the licensee. Licensed customers have the opportunity to profit from the expertise of Rieter specialists and to participate in Rieter Com4® yarn further training courses. Over and above these activities, Rieter supports licensed customers with the implementation of their own marketing actions.   Zimmer triple coat CORPORATE NEWS
  13. 13. Indian textile market is a decentralized, unorganized, fragmented market and with a hub centric mindset. eg. Surat is ladies fabrics & polyester/ viscose fabric centric, Erode is a spinning & weaving cluster, then Banaras is a silk cluster, etc. The problem is that these hubs are unaware of each others activities and the organised players play a back stage role in the same. Birla Cellulose, is the umbrella brand of the Aditya Birla Group’s range of cellulosic fibre. The Company has taken an initiative to have a centralized and more organized Indian textile industry. On the 30th of May 2013, India’s 1st time large scale Hub meet was held in Surat by the Birla Group. The idea is to integrate the entire textile value chain and its members under one platform and help each other. Surat is the largest Hub producing more than 70% of India’s ladies dress material. More than 90% is with Polyester. And rest 10% consists of all - Nylon, Cotton, Viscose and PC & PV Blends. The questions are: World trend is going towards comfort as against our Synthetic focus. Why are we not growing to our potential? Most Buyers and orders are from outside Surat. There is Lack of Proactive Product development in line with world trends. There is hardly any awareness and links to consumer trends. Bearing this in mind, Birla believes ‘If my customer grows, I will grow and vice versa’. Hub meets and participation by all people involved with the textile industry is one of the initiatives taken by Birla, that none of the other Corporates have taken till date. Birla Cellulose proposed the following measures at the Surat Hub Meet for a fruitful textile partnership for mutual growth: • For new design the challenge starts from yarn. We support sourcing for yarns & fabrics • Commercial information and vendor support for fabrics beginning with outsourcing • Successfully started with 60s x 60s, 92 x 88 modal sourcing @ Rs.52/mtr and now being developed indigenously for commercial use • Successfully conducted trials for dyeing and printing of cellulosic fabrics (samples were displayed at the meet) • Further new products with 80s Modal, HT Modal Poly blends, slub & fancy blends is in progress • Sizing development support till successful weaving • High speed weaving in shuttleless looms • TRADC: Their innovation centre at Kosamba, to support innovation. • Master designers like Mr. Nirmal Doshi, International designer Mr. Sandy to offer Surat new innovations • Birla targets to offer Surat over 100 new designs on regular frequency and bring to international market samples from mass suppliers like Indonesia and China – for inspiration on global trends • Accreditation support: All bench marks for quality of yarn, fabric would be shared • TechnologyTransfer Support (TTS) through TRADC • Coordination with our front end team for marketing support This kind of symbiotic relation will go a long way in the growth of Indian textile Industry. Birla Cellulose is also planning to have these meets in different cities of India. Next meet is in Mumbai where hubs of Bhiwandi, Ulhasnagar and Tarapur will be included. Many others are being planned at Ichalkanchi, Coimbatore, Erode etc on every alternate month across the year.   Lenzing quality and innovative strength set global standards for man- made cellulose fibres. With 75 years of experience in fibre production, the Lenzing Group is the only company worldwide combining the manufacturing of all three man-made cellulose fibre generations on a large industrial scale under one roof – from the classic viscose to modal and lyocell (TENCEL®) fibres. Lenzing supplies the global textile and nonwovens industry with high-quality man-made cellulose fibres and is the leading supplier in many business-to-business markets. The portfolio ranges from dissolving pulp, standard and specialty cellulose fibres to engineering services. At Techtextil in Frankfurt from 3-5 Oct, 2013, Lenzing is presenting a new flame-resistant fibre especially for use in upholstery fabrics in public transportation vehicles. The guidelines which apply to public transportation vehicles are particularly strict. The fabric and materials used in these applications have to satisfy the safety standards. With a newly developed Lenzing FR® fibre, these satisfy all the safety standards for public safety. The advantage of a safety fibre in public transportation is that Lenzing FR® is made from beechwood and is endowed with all of the positive properties this natural fibre has to offer. The seating “climate” remains excellent even over longer distances since the good breathing properties of the fibre take effect here. The special thing about Lenzing FR® or the “divan fiber” is that, unlike conventional protection fibres, it does not melt, drip or afterglow. The latter properties represent an enormous risk for passengers. Another important safety aspect is that the new flame-resistant fibre delivers a lower rate of toxicity and flue gas density in the event of a fire. The “divan fiber” is particularly well suited for use in blends with wool. Both fibres complement each other superbly. Resistance to fading and excellent pilling performance coupled with durability make upholstery fabrics a pleasure to sit on. As a result of using the Lenzing FR® “divan fibre”, treating wool with additional, ecologically harmful flame- retardant agents is not necessary – another production advantage! The new specialty fibre can be used in various transportation vehicles. Wherever safety and comfort are in demand, Lenzing FR® is the answer whether in maritime or rail transportation, air transportation, subways or in public spaces such as cinemas and theatres.   Lenzing presents new fibre development Mr. Manohar Samuel VP, Birla Cellulose 11Textile Value Chain | July -Sept 2013 Birla Hub Meet
  14. 14. Completing our section of skill gap from spinning, to fabric manufacturing, to fabric processing and ending with garmenting; we continue with the emerging trends in skill requirements, requirements state-wise and projected requirements of human resources. Current Training/Education Infrastructure: The current training infrastructure is inadequate on both number of people trained and also the quality of training being imparted. Also, very few of the training initiatives are targeted at the shop floor level. The newly inducted workers learn through informal training and learning from the experience of the existing work force. The availability of trained manpower is a key issue for the garmenting sector. The ATDC, ITIs and NIFT annually train up to 50,000 workers. A few private sector players also provide training specific to the garmenting sector. A large portion of the requirement of human resource at the operator level is met by on the job training. Hence training at the operator level is a key gap. Acute shortage of skilled man power leads to poaching and acts as a detriment to spending on in house training initiatives. • Emerging trends in human resource requirements 1. Technology: The changes in technology would significantly affect the profile of people involved. As mentioned earlier, the share of shuttle-less looms in the Indian textiles industry is only 2- 3% as against a world average of 16.9%, thereby indicating a low degree of modernization in the Indian weaving industry. Although the Indian spinning sector is relatively more modernised, around 60% of installed spindles are more than 10 years old and open- end (OE) rotors account for only 1% of total installed spindles. In the apparel sector, India has much lower investment in special purpose machines, which perform specific functions and add value to the product. Very few export establishments have invested in cutting machines or finishing machines. The low level of technology and government incentives like TUFS would drive modernization in the industry where as the high power costs would be a detriment. The technological upgradation would necessitate the human resource to be trained in modern machinery and also greater in house spending on training. The shortage of labour and increasing wage rate would further induce greater automation which will lead to higher productivity. For instance, the operating hours per quintal of yarn have decreased from 77 to 25 on account of modernization and would continue to fall. Also, the numbers of people involved in post spinning operations have come down on account of automatic cone winding machines. The modern machinery would require skilled maintenance people who have the requisite knowledge of the same. Proper maintenance would be crucial as machine down time and costly spare parts would significantly affect the performance of the industry. 2. Quality Processes: There would be increasing focus and adoption of quality and environment related processes, such as: • ISO 9001:2008 • ISO 14001 3. Research & Development: The textile industry does not have R&D as a focus area. The industry would have to invest more in both process and product R&D to maintain product and cost competitiveness. This requires industry-academia collaborations as well as individual R&D efforts by the companies. 4. Labour laws: More flexible labour regulations will positively affect the industry. Currently, T&C industry comes under the purview of Contract Labour Act, 1970 which prohibits contract labour for the work that is perennial in nature. The exporters find it difficult to manage the seasonal and order based volatility in demand on account of this. Change in the current regulations can lead to opening up of more employment opportunities. Also, the current regulations prohibit women from being employed in night shifts. Relaxation of the same with adequate safeguards can lead to more participation of women and also help in addressing the skill shortage in the industry. 5. Human resource related: Modernization of technology would necessitate more technical skills for operators in the production and maintenance functions across the value chain of the textile industry. The sector also needs multi-tasking/ multi- skilling at the operator level. The human resource at the higher levels as well as in other functions like procurement would need to possess the knowledge of various types of machines and also keep abreast with the changes in technology. The garmenting sector would be the key driver of the employment in the textile sector. Majority large portion of the human resource requirement will be for operators who have the adequate knowledge of sewing machine operations and different types of seams and stitches. Although, the industry will continue to have predominantly line system of operations, designer and high end fashion exports would necessitate “make through” system of operations which would require the operators to have the ability to stitch the complete garment. The availability of merchandising and designing skills would be crucial for increasing share in export markets and tapping the potential in new markets. • Regions which will drive human resource requirements: The major centres in India where this employment generation would take place are Tamil Nadu, West Bengal, Karnataka, Maharashtra, and Gujarat. The state of Tamil Nadu will account for around 30% of the employment in the textile sector. By ICRA Managment Consulting Services Ltd. (IMaCS), www. nsdcindia.org 12 Textile Value Chain | July -Sept 2013 SKILL GAP & ANALYSIS Emerging trends in skill requirements & projected requirements of human resources.
  15. 15. 13Textile Value Chain | July -Sept 2013 Fig. 1. Share of various states of employment in the textile sector Source: Annual Survey of Industries, IMaCS Analysis The poor performance of the industry in the recent past has resulted in the sector not attracting new investments. The cluster development activities of various organizations have not found takers and hence new clusters do not appear likely at this point of time. However, Andhra Pradesh is a likely future destination for new investments, especially in the garmenting sector with the establishment of Apparel Parks. The government initiatives of providing power at a cost of 2 Rs per unit will be a key factor in attracting investments in spinning sector. Also, the state has surplus cotton and would result in lower logistics cost. Availability of raw materials and low power costs will also attract investments in the downstream activities like fabric manufacturing, processing and garmenting. The scheme of integrated textile parks and various SEZs would also affect the regions availability of labour. States like Uttaranchal necessitate that most of the labour force in the units operating in SEZ should be local. The states of UP, Bihar and Orissa etc would be key catchment areas to meet the labour requirements. Already the spinning sector in Tamil Nadu is seeing more and more influx of labour from these states as the current wage rates in the states are very high. Environmental concerns would affect the processing sector. The effluent treatment requirements might see units shifting to coastal areas as marine discharge requirements are less stringent. Projected Human Resource Requirements in the Textile & Clothing Sector: This projection is based on the projection of industry size. It is estimated that the PFCE on clothing will grow at a CAGR of 7.5% between 2008 and 20224. Based on projected growth of GDP and exports, we expect that the exports of textiles will grow at a rate of 11% to 11.5%. Thus, the overall T&C sector will grow at a CAGR of 9.5% to a size of Rs. 6,730 billion. Out of this, the share of exports is expected to increase from just under 50% currently to about 60% in 2022. Fig. 2. Projected size of the Textile and Clothing industry (in Rs. billion) While analyzing the human resource requirement, the categorization of the overall T&C sector as follows: 1. The Mainstream T&C sector – comprising of Spinning, Fabric Manufacturing, Fabric Processing and Garmenting. 2. Other related industries such as: Handloom, Woolen, Sericulture, Handicrafts, Jute. While we expect the human resource requirement in the Mainstream T&C sector to be closely related to market driven T&C industry growth, the human resource requirement in areas such as handloom and handicrafts would have to be supplemented by initiatives from the Government and Industry. The addition of human resource into these other sectors would be at a much lower rate as compared to the Mainstream sectors due to need for significant support for earnings, scope for enhanced technology intervention and automation as compared to current levels, the need to add value, and attractiveness of the sector among the human resource supply. Keeping in mind the above factors and the growth of the industry, it is expected that the overall employment in the T & C sector would increase from about 33 to 35 million currently to about 60 to 62 million by 2022. This would translate to an incremental human resource requirement of about 25 million persons. Of this the Mainstream T&C sector has the potential to employ about 17 million persons incrementally till 2022.  In our next issue we will continue with NSDC Focus areas for Skill Building PFCE on cloting Exports 8,000 7,000 6,000 5,000 4,000 3,000 2,000 1,000 - 9.5% 4,049 2,684 2,611 2,160 1,359 1,404 2012 2018 2022 891 992 2008 Others,7% Andhra Delhi,3% Pradesh , 4% Uttar Pradesh, 4% Punjab, 5% Rajasthan, 5% Haryana, 5% Gujarat, 10% Maharashtra, 8% Karnataka, 11% West Bengal, 11% Tamil Nadu, 28% SKILL GAP & ANALYSIS
  16. 16. BASE COLOURS GREY 04-CW-1100085-MC WINTER WHITES 04-CW-1200071-MC CAMEL 04-CW-0801480-CO CHOCOLATE 04-CW-0701424-CO COOL COLOURS LODEN 04-CW-0904371-MC BLUE SPRUCE 04-CW-0904602-MC DELFT BLUE 04-CW-0501146-MC COBALT 04-CW-0500508-MC INK 04-CW-0503697-MC 2013-14 Fall/ WinterMen's Wear Colour Forecast
  17. 17. WARM COLOURS Courtesy: www.knitweartrends.com. Colour Codes based on Color World, www.csicolorworld.com DRIED ROSE 04-CW-0302843-CO RAISIN 04-CW-0303056-MC BORDEAUX 04-CW-0303146-CO RED 04-CW-0301046-MC RUST 04-CW-0200174-MC YELLOW 04-CW-0101165-CO GINGERBREAD 04-CW-0701603-MC Men's Wear Colour Forecast 2013-14 Fall/ Winter
  18. 18. ISDI has entered into a collaboration with Parsons, the New School for Design, New York. The Associate Campus of world’s number one Fashion School – Parsons is called the Indian School of Design & Innovation (ISDI), Parsons Mumbai. Parsons Mumbai is a central part of Parsons agenda of ‘going global’. Parsons Mumbai, like Parsons Paris & Parsons Shanghai will function differently based on local regulations, and, more importantly, on local traditions. Through the establishment of Parsons Mumbai and its other global academic centres, Parsons global initiatives are designed to build learning networks connected by major urban centres of art and design. These initiatives join Parsons existing study abroad offerings, online courses, and educational partnerships in Europe, Asia, and Latin America. The plan allows Parsons to share their proven educational methodology and give students opportunities to learn and work in real- world settings. Parsons goal is to develop students' global awareness, cultural literacy, and familiarity with the systems that shape creative, humanitarian, and entrepreneurial endeavours around the world. The Indian School of Design and Innovation (ISDI) opens its doors to students in July 2013. ISDI is committed to a new educational model inspired by the idea of design and innovation as transformative forces in society. It is located in India’s fashion capital Mumbai and its campus is situated in centrally located Parel at the Indiabulls Centre. ISDI offers a series of globally benchmarked Undergraduate Diploma Programmes (UGDP), four year intensive programmes (foundation year plus three year specialisation) for students across the disciplines of fashion, interior, product and communication design. Opportunities to engage in design education for graduates and young professionals start in September 2013, with the launch of ISDI’s one year Post Graduate Programme (PGP) in Fashion Business Management and Creative Entrepreneurship The collaboration with Parsons will enable ISDI to benefit from Parsons’ rigorous curriculum, prominent visiting faculty, well established student exchanges and global relationships. The curriculum will include development, quality assurance, student and faculty exchanges, as well as collaborative projects with students at Parsons' campuses in New York and Paris. ISDI’s academic ideology moulds designers to cater to a diverse range of industries and employers. All educational programmes are built upon the foundation of a forward-thinking and innovative curriculum, industry sponsored projects, national and international collaborations and a deep sense of social and environmental responsibility. Creativity, innovation and sustainability are core to ISDI’s philosophy.   More programmes are on the anvil, so keep yourself updated through their website www.isdi.in Pic: Parsons, NY, USA Last textile policy was declared in 2000. Thereafter, lots of developments have taken place in the Textile Industry and new sectors like technical textile have emerged. So, the Govt. has appointed National Manufacturing Competitiveness Council (NMCC) under the chairmanship of Mr. Ajay Shankar. The first nd meeting of this committee will be taking place on 2 July 2013. This committee will review the old textile policy and prepare a final report st on National Fibre Policy by 31 October 2013, said Mr. A.B. Joshi, Textlle Commissioner, while inaugurating India's largest garment fair st on 1 July 2013. The Clothing Manufacturers Association 0f India (CMAI), celebrating its Golden Jubilee this Year, haD organized India's Largest ever th st rd Apparel Trade Show “The 57 National Garment Fair” from 1 – 3 July at Bombay Exhibition Centre, NSE Complex, Goregaon (E), Mumbai. Mr. A.B. Joshi, Textile Commissioner has further stated that after removal of 10% excise duty on branded readymade garments, it has provided boost to the industry and it has started moving upwards again towards growth path. Good monsoon will also increase the cotton production. The Fair was spread over approx. 3.75 Lakh Sq. Feet and had 589 Stalls displaying over 640 Brands. This has been the India’s Largest ever Garment Fair held so far. Approx 35,000 Retailers from all across th CMAI'S: The 57 National Garment Fair India visited this B2B Fair. There were 4 fashion shows, 2 fashion shows each, on 1st & 2nd July 2013 which were highly received & appreciated. T h e B u s i n e s s N e t w o r k i n g Sessions provided opportunities for Exhibitors to meet A g e n t s & Distributors in the First Session, High Street Retailers in the Second Session and Merchandisers from National Chain Stores in the Third Session. CMAI invited Reputed Agents & Distributors, High Street Retailers from 15 States and All National Chain Stores to Participate in the these Sessions. CMAI’s next National Garment Fair will be held from 6th to 8th January 2014 at Bombay Exhibition Centre, Goregaon-Mumbai.   16 Textile Value Chain | July -Sept 2013 COLLEGE FOCUS ISDI, Parsons Mumbai
  19. 19. ADVT.
  20. 20. Figure 2 Operational Competencies Characteristics Rating categories Strong • Use of latest machinery/processes • Capacity utilisation >85% ‘IND A’/‘lower end of ‘IND AA’ Medium • Growing use of new technology • Capacity utilsation: 60%-85% ‘IND BBB’ Weak • Mix of old and new technology • Capacity utilisation: 40%-60% ‘IND BB’ Very weak • Capacity utilisation below 40% due to old technology and/or power supply or labour problems ‘IND B’ and below Source: Ind-Ra 18 Textile Value Chain | July -Sept 2013 WHAT IS CREDIT RATING & WHY IS IT IMPORTANT? These questions immediately come to the mind when one hears about Credit Rating. Credit Rating is a pre-requisite for borrowing of funds by Corporate. Rating is an assessment of the financial strength of company. Rating is intended to bring transparency and efficiency to build confidence of investors whether individuals, banks, financial institution, foreign institution etc; by mitigating and managing risk, taking pricing decisions, generating more revenue and enhancing returns. Ratings help lenders and borrowers, issuers and investors, regulators, and market intermediaries to make better-informed investment and business decisions. The rating exercise takes into account the management capability, industry dynamics, operational performance, financial risk characteristics and the future prospects of the entity. Ratings help shape public policy on infrastructure in emerging markets. Ratings catalyse economic growth and development in countries for a better tomorrow. Even otherwise, it is advisable to conduct rating to know a company’s strengths and weaknesses. To give an insight in the world of Credit Rating, we have interviewed with the best in the credit rating business in India. 1- India Rating & Research / Fitch Group 2- CRISIL 3- CARE , Credit Analysis & Research limited Readers will definitely find their interviews knowledgeable, worthwhile and interesting. COVER STORY Ind-Ra has issued a sector-specific special report describing the credit factors the agency uses to analyse the Indian textile companies. Ind-Ra believes the Indian textile sector in general and cotton textiles sector in particular is exposed to volatile raw material prices which is the largest cost variant and can affect a company’s finances. Price risk also emanates from the adverse impact of regulation and low pricing flexibility of end products. For synthetic textile players, raw material prices are correlated to the demand-supply situation, crude oil prices, movements of dollar/rupee and prices of cotton and chemical substitutes. Textile operations are working-capital intensive due to long inventory periods and high debtor days. In the cotton industry, profitability is determined by the efficiency and the timing of cotton buying and inventory management. Ind-Ra gives rating advantage to companies which have a proven track record of managing the inventory risk. The natural rating territory of the Ind-Ra-rated textile universe is ‘IND BBB’ and below. This is due to lower margins from a difficult operating environment on account of regulatory influence, raw material cyclicality and fragmentation. Players who demonstrate resilience to volatility, slowdown, adequate liquidity and financial flexibility qualify for higher rating categories. Companies with strong market position and distribution network as well as with brand recognition enjoy a comparative rating advantage. The textile value chain is diverse and complex and every company’s business model can be unique depending upon the level of value addition, product sophistication and end-market exposure. Ind-Ra looks at product quality and range, labour and power cost and availability and the level of technology and integration while assessing a company’s operational competencies and earnings capacity. Business risks are different for cotton and synthetic textiles. Ind-Ra takes a positive note of companies which are diversified into both cotton and synthetic textiles, or have the flexibility to switch their primary raw material. In the below tables, Ind-Ra Report tells us which sector is rated, for what & their grades by Ind-Ra. ‘Indian Textiles: Rating Approach’ - Factors Impacting Credit Ratings, A Special Report Figure 1 Raw Material Sourcing Capability Characteristics Rating categories Strong • Efficient scale and timing of procurement • Strong liquidity and supply chain • Capacity to weather cyclicality ‘IND A’/’lower end of ‘IND AA’ Medium • Demonstrated ability to manage working capital cycle • Moderate scale of operations for efficient procurement ‘IND BBB’ Weak • Small scale of business • Volatile working capital cycle ‘IND BB’ Very weak • Generally tight liquidity • Small scale leading to lower ability to mitigate raw material cyclicality ‘IND B’ and below Source: Ind-Ra CREDIT RATING
  21. 21. Figure 6 Leverage and Coverage Ratios Rating categories FY12 median adjusted debt net of cash/op. EBITDAR (x) Net fixed charge cover (x) ‘IND A’/‘lower end of ‘IND AA’ 2.5 4.4 ‘IND BBB’ 3.2 1.8 ‘IND BB’ 4.3 1.3 ‘IND B’ 5.5 1.1 Source: Ind-Ra Figure 5 Access to External Financing Rating categories Access to external funds ‘IND A’/‘lower end of ‘IND AA’ Complete access to external financing; high financial flexibility ‘IND BBB’ Reasonable access to external financing ‘IND BB’ Access to external financial mainly in form of bank refinancing or loans from founders ‘IND B’ and below Usually delays in obtaining additional bank limits; or non-injection of funds from founders Source: Ind-Ra Figure 3 Level of Value Addition Value chain Level of integration Rating range Strong Value added/branded products that command stable demand/ pricing ‘IND A’/‘lower end of ‘IND AA’ Medium Reasonable value addition that enjoys stable demand while pricing could vary; wide product range ‘IND BBB’ Weak Commoditised products; narrow product range ‘IND BB’ Very weak Low-value added businesses (e.g. trading); highly susceptible to price changes ‘IND B’ and below Source: Ind-Ra Figure 4 EBITDAR and CFO Margin Rating categories Op. EBITDAR margin (%) CFO/sales (%) ‘IND A’/‘lower end of ‘IND AA’ • Consistently stable EBITDA margins of 10% or higher Consistently positive ‘IND BBB’ • Moderate volatility in profitability • Expected to remain +ve throughout cycle Generally positive ‘IND BB’ • Volatile, low margins • Likely to turn –ve in downturn Generally negative ‘IND B’ and below • Erratic or very low margins • EBITDA losses Consistently negative (>-10%) Source: Ind-Ra In an engrossing interview with TVC, Mr. Rakesh Valecha, Senior Director, Head - Corporate Ratings, talks about Ind-Ra’s role in credit rating for textile companies, their parameters and the state of Indian textile industry. TVC: What is the role of your agency and what are the various services you offer? R.V.: India Ratings & Research (Ind-Ra) is India's most respected rating agency committed to providing the India's credit markets with accurate, timely and prospective credit opinions. Built on a foundation of independent thinking, rigorous analytics, and an open & balanced approach towards credit research, Ind-Ra has grown rapidly during the past decade gaining significant market presence in India's fixed income market. Ind-Ra has six offices in India located at Mumbai, Delhi, Chennai, Bangalore, Hyderabad and Kolkata. Ind-Ra is recognised by the Securities and Exchange Board of India, the Reserve Bank of India and National Housing Bank TVC: What are the different types of clients Ind-Ra caters to? R.V.: Ind-Ra currently maintains coverage of corporate issuers, financial institutions, which includes banks and insurance companies, finance & leasing companies and managed funds, urban local bodies and project finance. TVC: What are the various factors considered by Ind-Ra while assigning credit ratings for issuers of debt obligations/instruments? R.V.: The ratings are assigned based on established criteria and methodologies. These criteria are available on www.indiaratings.co.in. The Key highlights of “Corporate Rating Methodology” which is the Master criteria used for rating Corporate are as below: Qualitative and Quantitative Factors: India Ratings Corporate ratings reflect both qualitative and quantitative factors encompassing the business and financial risks of fixed-income issuers and their individual debt issues. Key Rating Factors Industry risk Financial profile Operating environment Cash flow and earnings Company profile Capital structure Management strategy/governance Financial flexibility Group structure Source: India Ratings Issuer Ratings: An Issuer Rating (IR) is an assessment of an issuer’s relative vulnerability to default on financial obligations, and is intended to be comparable across industry groups. Issuers may often carry both Long-Term and Short-Term IRs. Because both types of IRs are based on an issuer’s fundamental credit characteristics, a relationship exists between them Historical and Projected Profile: India Ratings’ analysis typically covers at least three years of operating history and financial data, as well as the agency’s forecasts of future performance. These are used in a comparative analysis, through which the agency reviews the strength of an issuer’s business and financial risk profile relative to that of others in its industry and/or rating category peer group. Weighting of Factors Varies: This comparative analysis includes consideration, where appropriate, of the potential for changes in the issuer’s operating environment or financial strategy relative to its ratings. The weighting between individual and aggregate qualitative and quantitative factors varies between entities in a sector as well as over time. As a general guideline, Senior Director, Head - Corporate Ratings, Rakesh Valecha 19Textile Value Chain | July -Sept 2013 COVER STORY CREDIT RATING INTERVIEWIndia Ratings & Research, A Fitch Group Company
  22. 22. where one factor is significantly weaker than others, this weakest element tends to attract a greater weight in the analysis. TVC: How do you find the growth & investment in the current Indian textile industry? R.V.: Indian textile industry has been undergoing through a challenging phase over 2009-2012 characterized by demand seasonality, uneven government policy and speculation-led cotton price volatility increasing financial risks for sector. Current demand prospects remain modest and Ind-Ra has a ‘negative to stable’ outlook on the sector for calendar year 2013. Policy for 2013 is however encouraging with Budget 2013-14 focusing on expansion and modernization via continuation of TUFS (Technology Upgradation Fund Scheme- providing capital and interest subsidy to textile sector) with an investment target of INR 1510 bn. However sector’s appetite for large debt-led capex in the near-term could be questioned as most companies are in consolidation mode. Domestically, weak consumer sentiments, high inflation and low wage growth have been dampening textiles and apparel sales. Abatement of excise duty as announced in Budget 2013-2014 will help reduce prices of end products and uplift demand. In 2012, garment apparel exports declined by 6% due to economic slowdown in key end-markets US and Europe. Going forward garment exports outlook is mixed with Europe re-entering recession, although US demand pick up is encouraging. Cotton yarn growth outlook is positive with higher demand of cotton yarn from China and improving margins on account of low cotton prices and firm cotton yarn prices. In this backdrop, investments in the textile sector have slowed as reflected in the lower number of applications under TUFS. In 2010-11 the number of TUFS applications plunged manifold to 256 (total project cost INR 397 cr) from 2384 (total project cost INR 28005cr) in 2009-10. TVC: There is a downtrend in investment in textile sectors. Why do you think the investors are not expanding/planning new projects? Are these investors diverting to other industries? R.V.: Investment activity slowed down across the textile value chain in 2012 due to uncertainty on demand and volatile raw material prices which led of funds being tied in inventories. Companies have deferred or slowed on capacity expansion plans due to several reasons including under-utilization of existing capacity, shortage/high cost of self-generated power (Gujarat and South India) and even regulatory reasons (such as environmental regulation in Tirupur). Continuation of the TUFS in the Twelfth Five Year Plan and INR 24bn allotment for technology upgradation is likely to encourage investments in power loom modernization. To boost investments in the spinning segment, the Gujarat Government in September 2012 came up with The Gujarat Textile Policy (GTP) targeting installation of 2.5m spindles worth INR 70 bn over the next five years. The impact will remain credit neutral in 2013 as benefits will accrue only in the medium term. Improvement in market conditions and Foreign Direct Investment could provide impetus to new projects in the medium term. There is a general deceleration in the domestic investment drive due to high cost of debt and paucity of equity funding. Textile expansion has the benefit of 10% capital subsidy and 4% interest subsidy under TUFS which is not available for other industries. RBI also extended the 2% interest subvention for exporters till 2014, and additional 2% incentive is provided by the government for entities registering higher exports. Hence Ind-Ra believes that investors are broadly not diverting to other industries but anticipating the right time to make new investments. CRISIL Ratings is India's leading rating agency. They pioneered the concept of credit rating in India in 1987. They have rated over 60,000 entities, by far the largest number in India. They are a full- service rating agency who rate the entire range of debt instruments: bank loans, certificates of deposit, commercial paper, non- convertible debentures, bank hybrid capital instruments, asset- backed securities, mortgage-backed securities, perpetual bonds, and partial guarantees In a candid conversation with TVC, Senior Director at CRISIL Ratings, Mr. Subodh Rai, gives the real picture of Ratings in the Textile Industry… TVC: How do you find the growth & investment in the current Indian Textile Industry? S.R.: The textile industry comprising of yarn, fabric and readymade garments is expected to grow a modest rate of 4-5% p.a. over the medium term. This is likely to be supported by stable domestic demand, and a marginal growth in international demand. Investment in the textile sector is likely to remain subdued over the near to medium term with respect to large capacity additions. However, extension of Technology Upgradation Fund Scheme (TUFS) for the 12th Five- Year plan is expected to provide some fillip to the sector. TVC: Is there a downtrend in investment in the textile sector? If Yes, Why do you think the investors are not expanding/planning new projects? S.R.: Yes. Given the uncertainties in the economic environment and overcapacities prevailing in the industry, companies are adopting a wait-and-watch approach towards investment in projects. Further, shortage of labour and stressed power scenario in major textile hubs of South India. are deterrents for additional investments. TVC: What is the benefit of Ratings for textile companies? S.R.: Rating is a prime input in deciding interest rate charged by banks. In addition, the better-rated companies, across industries, are able to diversify its funding sources e.g. access to capital market, and also negotiate finer interest rates with banks thereby save on interest costs. Rating is also perceived as a self-improvement tool; an independent credit opinion from CRISIL provides the rated company pointers for improvements. A large number of CRISIL’s textile clients have indicated that besides the rating, the interaction and the feedback from CRISIL is an important element in their strategic and operational decision-making. India Ratings & Research, A Fitch Group Company INTERVIEW 20 Textile Value Chain | July -Sept 2013 INTERVIEWCRISIL Ratings
  23. 23. CARE Ratings has established itself as the second- largest credit rating agency in India. General Manager of CARE Ratings, Mr. Milind Gadkari was kind enough to give TVC an exclusive interview in his busy schedule. Mr. Milind Gadkari General Manager of CARE Ratings TVC: What is the role of your agency and what are the various services you offer? M.G. : Credit Analysis & Research Ltd. (CARE) is a premier Indian Rating Agency providing full range of ratings as well as grading services. It includes debt instrument ratings, bank loan ratings, issuer ratings, SSI MSE ratings, SME ratings, Securitization ratings etc. It also provides grading services like IPO grading, equi grade, shipyard grading, maritime training course grading etc. CARE also has a research division which provides Industry research, customized research, etc TVC: What are the different types of clients CARE caters to? M.G. : CARE caters to a whole range of clients which includes Industrial companies, Banks, Non-banking financial companies (NBFCs), Infrastructure entities, Microfinance institutions, Insurance companies, Mutual funds, State Govt. entities, urban local bodies, services' organizations, etc. TVC: Who are CARE's major clients? M.G. : CARE's clientele includes large banks like State Bank of India, ICICI Bank, Punjab National Bank, HDFC Bank, Axis Bank etc. It also includes large corporate entities like Reliance Industries Ltd., Grasim Industries Ltd., Tata Motors Ltd., Tata Steel Ltd., Aditya Birla Nuvo Ltd. etc. TVC: How do you find the growth & investment in the current Indian Textile Industry? M.G. : While the growth of Indian Textile Industry has remained stable during last two years, incremental investments in new capacity have not been aggressive. The investment in pipeline is not uniform and it is distributed amongst some of the sectors of the industry. Whereas there is capacity addition happening in sectors like denim, continuous polymerization (CP) plants etc. some other sectors like spinning are witnessing modest investments. Main reasons for overall slowdown in investment climate have been as follows:  Limited financial flexibility available with the textile companies, with leveraged balance sheets  High interest rates  Heightened Volatility in commodity prices like cotton, cotton yarn, crude oil  Increased power and fuel costs, with power shortages in some of the states After robust investment in FY11, spinning sector has witnessed slowdown in investment flow in the next two years. At the same time, denim sector has seen continued growth in investment, which is likely to result in oversupply situation in the segment. Polyester chain has witnessed investments in CP plants, with many players implementing the same. Union Budget 2013-14 has laid special emphasis on textile sector by way of extension of TUFS in the 12th Plan with an investment target of Rs.1,51,000 crores. Extension of TUFS coupled with RBI's action on the monetary policy front will encourage investment in the sector which has not seen much of capacity addition in the past two years. Further, other budget proposals like 'Zero Excise Duty Route' for Readymade Garment (RMG) Industry, setting up of RMG Park within ITPs’ and financial assistance for Handloom sector will also encourage investments in the sector. With moderation in cotton prices and sustained demand for cotton yarn from China on the back of China's concentration on production of value added products, the prospect of cotton spinning units is expected to improve. Exports of cotton yarn are expected to touch an all time high during FY13 with 758 million kg of cotton already exported during the period April-Dec 2012, which is almost 20% higher as compared to corresponding period a year ago. However, in case of Indian apparel sector wherein the US and EU account for more than 70% of exports, the concerns over the economic health of these regions puts pressure on the Indian apparel exporters in the medium term. TVC: Please explain whether peculiar problems faced in textile industry like change in export policies, volatility in prices of cotton, fibres, etc are taken into account during credit rating or not. In other words, whether some consideration is shown for the set back of financial performance relative to factors stated above. M.G.: As per rating methodology, CARE's rating process begins with the evaluation of the economy/industry in which the company operates, followed by the assessment of the business-risk factors specific to the company. This is followed by an assessment of the financial and project-related risk factors as well as the quality of the management. This methodology is followed while analyzing all the industries that come under the purview of the manufacturing sector. Any policy changes which may occur from time to time and its impact on operations of the companies in the industry are considered while rating debt of those companies. As far as ratings of companies in textile industry are concerned, there has been deterioration in credit profile of small to mid size companies having leveraged balance sheet and having limited presence in the textile value chain. However, credit profile of large, integrated players having presence across the textile value chain has remained largely stable.   21Textile Value Chain | July -Sept 2013 CARE RATINGS INTERVIEW
  24. 24. Bombay Dyeing and Manufacturing Co Ltd. was established by Nowrosjee Wadia in 1879, as a very small operation. The Company dip dyed Indian spun cotton yarn and dried it in the sun in three colours; turkey red, green and orange. From such modest beginnings, over the last 133 years, Bombay Dyeing has transformed themselves into one of the most reputed and esteemed establishments in India. Bombay Dyeing is the flagship company of the Wadia Group, a multi-product conglomerate with turnover in excess of 1.5 billion dollars and employee strength of 20,000 people. Some of the well known group companies include Britannia, Go Air, Bombay Dyeing, Bombay Realty, Bombay Burmah and many more. In January 2009, Bombay Dyeing & Manufacturing Company acquired the shares of White Horse Real Estate Company at face value and consequently it became a 100% subsidiary of the company. The Indian textile industry is one of the oldest and prominent players in global textile industry. Currently it is a $52 billion industry and is anticipated to grow to $115 billion by 2012. India accounts for 25% of the world yarn exports and it also accounts for 12% of the world’s production of textile fibres and yarn. Companies like Bombay Dyeing play a tremendous in India’s growth. Textile manufacturing is the main activity of Bombay Dyeing with 5 manufacturing facilities confirming to international standards. Bombay Dyeing is country’s largest exporter of home textiles. Bombay Dyeing's production is exported to USA, Canada, UK, Germany, Netherlands, Italy, France, Poland, Czechoslovakia, New Zealand, Switzerland, and many more countries. Presently, Bombay Dyeing has a distribution chain of over 600 exclusive stores across the country. Bombay Dyeing’s product range encompasses various categories of home furnishing, premium and stylish bed and bath linen, suiting and shirtings. Let us take a brief look at their products: Chemicals: Bombay Dyeing is the largest manufacturer of Dimethyl Terephthalate (DMT) in India. It has a capacity to manufacture 1,65,000 tonnes per annum (TPA). DMT is raw material for manufacturing polyester fibre, film, filament & yarn and engineering plastics. Polyester Staple Fibre (PSF): PSF is manufactured from 100% Virgin Polymer from continuous polymerisation plant. Product range from PSF includes micro fibres, semidull/ optically white/ dopes dyed black/ Hollow/ Super High Tenacity and trilobal products mix, amongst others. The entire gamut of textile products includes: Bedding range: Bed sheets, bed covers, quilts, duvet covers, dohars, bed-in-bag sets, blankets, pillow cases, cushion covers and shams Bedding accessories: Cushions, pillows, duvets, comforters, diwan sets and bed décor sets Bath linen: All types of towels for all purposes, bath robes and bath mats Hotel linen: Twills, dobby weaves, satins, jacquards, high-thread-count-sheeting and satin fabrics Industrial fabrics: microdot interlining fabrics for shoe uppers, adhesives, abrasives and leather cloth. All Bombay Dyeing products are manufactured to the highest quality standards. The company has stood the test of time on the basis of the wide range of high quality products that it offers to the consumers. It also creates the widest range of designs and offering with more than 1000 designs per year that are unmatched by any other company in its category and is the ultimate destination for the latest trends in the industry. Bombay Dyeing holds undisputed leadership in its category since its inception. The vision of the 1st generation created by Nowrosjee Nusserwanje Wadia, is being continued thru generations with the 2nd generation of Sir Ness N. Wadia, 3rd generation of Neville N. Wadia, 4th generation of Nusli N. Wadia and the 5th generation of Jeh Wadia and it will indisputably continue with even more fervour. It is a Legacy of over 130 years, driven by the vision to excel. It is an enterprise that generates sustainable value on the strength of trust and transparency. CORPORATE PROFILE Shri. Nusli N. Wadia Chairman Wadia Group Shri.Jeh N. Wadia Managing Director Bombay Dyeing 22 Textile Value Chain | July -Sept 2013
  25. 25. TVC: Bombay Dyeing is a leader in home textiles segment and has ruled at the top for many years. However recent impressions of the Company not much being very active in the textile industry are doing the rounds. Our readers would like to know your take on the same. D.M.: Impressions are actually not correct. Growth of our Company is more than 20% in last year as compared to general market growth rate of 5 % in textile business. We are totally committed to textile business, particularly home textiles. We have recently hired a new CEO who is fully dedicated to expanding retail side of our business by adding number of company outlets. In addition, we are also increasing our focus on large format stores. So our Company is very much keen in expanding textile business and we are absolutely active. TVC: What is your Company’s current production capacity? D.M.: Our production plant for home textiles is at Rajangaon, near Pune, Maharashtra. Capacity is 50000 lac meters per month. We procure grey fabric from our suppliers and various ancillaries, process it and make final finished products to sell at retail counters. Our Polyester Staple Fibre (PSF) plant is situated at Patalganga, in Raigad district, Maharashtra has a capacity of 13,000 tones per month & entire product is sold as a commodity in the market. Our spinning and winding facilities has an installed capacity of 1,35,336 ring spindles and our daily production of fabrics is 3,00,000meters. TVC: What is the scenario of the Company’s exports and domestic markets? D.M.: 90% of our turnover is from the domestic business in our own brand. 10% turnover is from Exports with made- to-order. We do not yet sell our own brand in the international market. We have 400 Exclusive Retail outlets & other 2000- 3000 outlets in India in which Bombay dyeing products are available. We also have institutional business where we supply to Hotels, Hospitals, schools, charitable trusts and many more. TVC: What is the current market size & share of Bombay Dyeing products in India? D.M.: Home textile segment is estimated at Rs. 10,000 crore of industry in India, in which organized sector is only 10 %. In the organized sector, Bombay Dyeing’s India market share is 40%. In the total market (Organized & Unorganized) Bombay Dyeing’s market share is 4%. TVC: What is your take on branding of PSF; will that improve your profitability? D.M.: It is an industrial product. It will not impact profitability but will impact innovation in terms of special features and benefits and will increase growth of profit. TVC: What is Bombay Dyeing’s Business Model? D.M.: For Our Business Model for Marketing, we follow multiple channels such as: our own retail stores, franchisee stores (which are more successful), large format stores (in recent times) and Multi-brand stores in 2 & 3 tier cities For our Business Model for Manufacturing we have: dedicated suppliers for yarn, Job work for weaving, direct outsource of fabrics and in-house processing like bleaching, dyeing, value added activity, etc. Currently, however our focus is on R e t a i l i n g a n d marketing rather than manufacturing. Our further plans also include product a n d d e s i g n development. TVC: What are the Company’s plans and reasons for investing in textiles & other industries? D.M.: We are investing for growth. We want to be closer to the customer and improve our turnover and margins. Our Current turn over for Home textile is Rs. 500 crore, 25 % of total, PSF is 1 5 0 0 c r o r e , 5 0 % o f t o t a l . O u r c u r r e n t utilization capacity is 60%. We are not planning for more manufacturing capacity. However, upgrading production technology is on the cards. We are expanding more on front end, that being Retail. We are planning to expand our retail outlets, building brands, advertising, promotions and more in those lines. Currently our Company is investing in these 3 business Verticals now: Home Textiles, Polyester Staple Fibre & Real Estate Development. We are not very keen on concentrating on the international market. We want our domestic established brand to go from strong to stronger. Marketing and brand building activity in international market is very expensive. In international market, we are taking baby steps, small way towards expansion. In the Middle East we sell our brands but we do not have strategic tie up as of now. We do have plans in expanding in furnishings, kitchen, dining linens, shopping bags and more. TVC: Does your Company or as a matter of fact any company, face any obstacles while putting up projects in India? D.M.: Approval on conversion of land used to take unduly long time and make projects unviable. Industrialists need to avail Shri. Durgesh Mehta Jt. Managing Director & CFO, Bombay Dyeing We had a chat with the affable Mr. Durgesh Mehta, Jt. Managing Director & CFO of Bombay Dyeing regarding the Company & its affairs. Bombay Dyeing Retail Store 23Textile Value Chain | July -Sept 2013 Interview
  26. 26. Aryan Silk Mills Head Office : Andheri East , Factory : J-2, 2nd Floor,Shree Arihant Complex,Kalher, Bhiwandi, Thane - 421302. Tel - 02522-646969 / 646901 | Mobile - 09324778264 email id : aryan.silkmills@gmail.com Contact Person : Mr.Vineet Arya : 9324525002 Aryan Silk Mills is synonymous with quality fabrics, FANCY fabrics… Since 25 years Aryan silk Mills into manufacturing blended fabrics in 58’’ width plain, fancy shirting fabrics & has 65 dealers network in India. “Feels like Cotton and looks like Linen”“Feels like Cotton and looks like Linen”“Feels like Cotton and looks like Linen”“Feels like Cotton and looks like Linen”“Feels like Cotton and looks like Linen” ADVT. services of multiple official agencies which is a major obstacle and results in long delay in completion of projects. Prompt availability of Infrastructure like power, water and effluent treatment at the right time and pricing is a major hindrance. Government initiative in TUFS scheme is very attractive. Organizations should be able to get advantage from this scheme. Financial institutes / Banks check the credibility of promoters & owners. Today financial institutes record Textile Industry in the Low Margin but Stable with Lesser Risk profile. So there isn’t much problem getting finances from Banks. Of course, there are companies, individuals who do speculation in raw material in commodity market for Cotton and Yarn prices, where intrinsic margin is very low. But Banks have norms and rules to control risks in businesses. TVC: How do you foresee the market for your products? D.M.: There is maximum opportunity in Home textiles. Indian consumer is upgrading themselves from low price, unbranded home linen to branded home linen. Consumer tastes and preferences have changed tremendously and are continuously changing. Consumers want more variety in colour, texture, design and at the same time want value for their money. TVC: What is Bombay Dyeing’s USP for being competent and competitive for many years? D.M.: Our brand is known for Quality and Value for Money which includes variety for every pocket, class, age group and education level. Sustaining its quality and novelty is the biggest advantage and challenge for Bombay Dyeing. We have a special design studio where we get designs from leading designer Sabyasachi, Wendell Rodriguez and also have tie ups with other designers. Wadia Group’s USP is that they continually focus on innovation, make competitive products which are relevant to the industry Shri Durgesh Mehta assured that in a short period of time, with our new CEO on board for our textiles segment, industry and consumers will see amazing improvements in Bombay Dyeing. Bombay Dyeing is a heritage that continues to inspire generations of people across time and we are proud of being a part of it.   CORPORATE PROFILE
  27. 27. Advt.
  28. 28. FIBRE FOCUSBirla Spundyed Viscose Fibre – An Eco Concept for Future Textile Abstract Viscose is the most preferred choice in case of knitwear usually in blends with Spandex and as 100% Viscose. Excellent colour brilliance, drape and luxurious feel are hallmarks of the product. Yarn dyed and fabric dyed sorts are in vogue and form a part of almost all leading brands. Spunshades is the spun dyed Viscose fibre which gives excellent all round fastness with colour uniformity. This paper deals with the study carried out at TRADC to optimize the process parameters for spun dyed fibre & the benefits comparison of spun dyed with the piece dyed route fabrics as a key to success in textile. Key words: Spun dyed Viscose, Spinning, Knitting, Dyeing. Introduction: Spundyed VSF of Birla Cellulose is coloured through mass pigmentation and hence has the best colour fastness rating of nearly 5 on 5 for wash/rub fastness and nearly 7 light fastness rating. Spundyed VSF is a country advantageous product of India and is available with leading spinners who export large quantities of quality yarn. Knitwear with spun dyed VSF in 100% form as well as in blends with Spandex ensure the same colour year after year as the fibre base is fixed. There is absolutely no need for the complicated colour matching operations and the batch to batch variations will be avoided in case of spun dyed Viscose. Spundyed knits are virtually free of barre problems. Spundyed VSF is Oeko Tex certified and is eco friendly and biodegradable. Sushil Hada, Ravinder Tuteja, Ganesh Jadhav, Praveen Kumar & Alkesh Darji TRADC, Birla Cellulose. Birladham, Kharach, Gujarat. Stock dyed fibre / piece dyeing Fig. A Fabric / garment printing Spun dyed Viscose Pigment & not Dyes Above Figure A suggests the Symbolic comparison illustrates Uniformity is maximum with excellent fastness in spun dyed Viscose as injection of the pigment is at the viscose solution stage. The coloration for piece dyeing & garment dyeing is only at the surface, so the core remains un dyed giving poor fastness properties. Also chances of batch to batch variations are more in case of piece dyed fabrics. SpunShades™ is the registered brand name for the spun dyed viscose manufactured by Birla Cellulose. It is available in 150 shades with 69 standard shades. For knitwear's we have shortlisted 13 regular shades which will be readily available to the customers. Rest shades can be customized as per the customer requirements. Material & Methods: Yarn Spinning Spun dyed Viscose fibre has different surface characteristic than the normal fibre. In case of spun dyed the fibre to fibre friction is higher. Hence it is necessary to optimize the spinning parameters to achieve the good yarn quality in terms of lesser imperfections. 30s single ring yarn is identified for the project trial. For the initial trial, we have selected 1.3 D X 38 mm spun dyed Viscose Shade no. 9676 for the yarn manufacturing. As this shade was showing higher imperfections, as per our previous experience. Below mentioned table shows the fibre properties for the fibre used for the trial: Parameters Denier X Cut Length Shade No. Denier OPU % Conditioned tenacity (Gms/Den) Conditioned elongation% 1.3d x38 mm 9676 1.3 D 0.35 -0.38 2.58 – 2.61 18 – 20% Values Our main focus was to attack on the neps in the yarn. As blow room & carding are the prime processes which are responsible for the neps, we have optimized the process parameters for the same. Methodology followed for the optimization of Spundyed viscose yarn at spinning stage is as mentioned below, 1) As compared to fibre opening through machine (MBO) the hand opening is a gentle opening process. It helps to minimize the fibre entanglements. So the hand opening was done. 2) Finer Lap and 4 thou wider gauge between lap feed plate to licker-in improved fibre opening with less entanglement. 3) Higher flat PPSI, Closer setting of flats to cylinder & higher flat speed improved carding & cleaning efficiency. Better yarn quality was achieved by better carding action & cleaning efficiency. 4) Drafting was improved by finer roving & slight wider spacer at ring frame. It helped to improve short thin-thick faults in association with less spindle speed. 5) The results achieved with 9676 spun shade are comparable with the Uster 25% norms of normal greige viscose. Knitting A knitting trial was conducted with the perfected yarn to check the knitting ability of the yarn & knitting efficiency on a single jersey knitting m/c. Following mentioned were the knitting machine parameters for the trial: 26 Textile Value Chain | July -Sept 2013
  29. 29. M/c Parameters Below are the grey fabric parameters for the trial: Wet Processing Process route followed for the spun dyed fabric - Results & Discussion: Yarn Quality Reports – M/c Make M/c Diameter M/c Gauge M/c Speed (RPM) Yarn Tension (CN) Mayer & Cie Single jersey circular knitting m/c 30” 24 22 rpm 3 - 4 Details M/c Parameters Wales per Inch Course per Inch Stitch Length Grey Fabric GSM 28 52 2.7 mm 126 Details Greig Fabric Pre wash Scouring Water extration Exhaust finish Washing & Neutralising Relax Drying Compaction (optional) Fig. B Process Details Uster Unevenness (%) Uster Thin (-30 %)/Km Uster Thin (-50%)/Km Uster Thick(+35%) /Km Uster Thick (+50%)/Km Uster Neps (+200%)/Km Total IPI/Km RKM 8.72 NA 1 57 7 19 27 16.9 9.52 NA 2 35 13 34 49 15.5 10.4 NA 4 62 25 65 94 14.2 9.6 687 1 152 10 32 43 15.3 Uster 5% Uster 25% Uster 50% TRADC acheived 30s Normal Grey Viscose 30s Spundyed Viscose Table no. 2 Fig. B & Fig. C shows the process route followed for the spun dyed & piece dyed viscose fabrics for the study. All the wet treatments done on the soft flow machines with MLR 1:10.Dyeing process is not required in case of spun dyed fabrics giving huge water, time & energy (steam, power) savings. Table 1 shows the process recipes & conditions maintained during the study. Piece Dyed Viscose process route: Greig Fabric Pre wash Scouring Pretreatment Exhaust finish Washing Dyeing Washing & Neutralising Water Extraction Relax Dry Compaction (optional) Fig. C Process Loading, Prewash Post processes Scouring Pretreatment Washing Dyeing Exhaust Finish 0.5 % washing agent at 70°C for 15 mins followed by hot wash & cold wash cum neutralization. Not Applicable Not Applicable Not Applicable 0.5% cationic softener at 50°C for 10 mins. 1 % washing agent & 3% caustic flakes at 95°C for 20 mins. 1 % washing agent & 6% caustic flakes, 0.6% peroxide stabilizer & 8% peroxide at 98°C for 60 mins. 1% Peroxide killer at 95°C for 20 mins followed by hot wash, cold wash cum neutralization. Cold wash, neutralization, 2 hot wash, 2 soaping, dye fixing & rinsing. 2.0 % cationic softener at 50°C for 10 mins. 1% Lubricant & 1% wetting agent at 60°C for 10 min. Hydro extraction, relax dry followed by compaction. Spun Dyed Viscose Piece Dyed Viscose Table no. 1 Process recipes & condition : 27Textile Value Chain | July -Sept 2013 FIBRE FOCUS
  30. 30. As per the Table no. 2 & the graphs, spun dyed Viscose yarn is showing results comparable to the Uster 25% norms for 30s normal Viscose yarn. All the testing done at controlled lab conditions of 65% RH with 27±2°c temperature. Fabric Quality Reports – Spun dyed Viscose scores over piece dyed Viscose in terms of chemical, water & energy cost as mentioned in the above table. The costing done for the study carried out TRADC, Birla Cellulose. Conclusion: From the above mentioned study, it can be summarized that the spun dyed Viscose scores over piece dyed Viscose as below, 1. Reduction in processing cost due to shortened process route. 2. Excellent all round fastness properties. As described earlier, Viscose Spun dyed is dyed through pigment injection at fibre manufacturing stage hence, giving excellent all round fastness properties 3. No batch to batch variations in terms of shade. 4. Value for money owing to reduced cost of yarn dyeing in Above mentioned table shows the benefits comparison of spun dyed viscose fabrics over the piece dyed fabrics. As the Spun dyed are manufactured by injecting pigments at the fibre spinning stage, the fastness ratings for the Spun dyed fabrics are excellent as compared to the piece dyed fabrics. Colour fading Values – case of auto stripers & yarn dyed sorts. 5. Yarn quality results comparable to 25% Uster norms for normal Viscose. 6. Total Eco concept for future Textile being saving in water, power, effluent load, higher productivity with improved product quality. Acknowledgments: The Authors want to acknowledge the Birla Cellulose management for providing the opportunity to carry out the study at TRADC. (Textile Research and Application Development Centre). References: 1. www.birlacellulose.com 2. China Textile Science (June 2012) - Benefits of Spun dyed Viscose fabrics over stock dyed fabrics & cotton fabrics. Table no. 4 Original After 1 wash After 3 Wash After 5 Wash After 10 Wash 5 5 5 5 5 5 4-5 4 3-4 3 Spun Dyed ViscoseWash Sample Piece Dyed Viscose Table no. 5 Chemical Cost Rs/Kg Power Cost Rs/Kg Water Cost Rs/Kg ETP Cost Rs/Kg Coal + Furnace oil Cost Rs/Kg Total Cost Rs/kg Total Water Used in Ltr/kg Total Time in mins per batch 55.4 2.39 1.09 1.82 8.41 69.11 91 575 14.54 1.21 0.37 0.62 5.14 21.88 31 190 73.75 49.37 66.06 65.93 38.88 68.34 65.93 66.96 Piece Dyed ViscoseParameters Spun Dyed Viscose Percentage Saving Table no. 3 Test Fastness To Wash Change in shade Staining on Cotton Fastness to Rubbing Dry Wet 5 5 5 4-5 4 4 3-4 3 IS 764 -1979 IS 766 - 1988 Spun Dyed Viscose Piece Dyed Viscose Test Method As per the above mentioned table, spun dyed Viscose shows no colour fading even after repetitive washings. Value 5 denotes no colour fading & solid appearance where as 1 denotes poor colour fading & fuzzy appearance. Process savings in Spundyed Viscose Knits - Uster 5% Uster 25% Uster 50% Spun Dyed Viscose 17 16 15 14 13 12 RKM Uster 5% Uster 25% Uster 50% Spun Dyed Viscose Total IPI/Km 100 80 60 40 20 0 28 Textile Value Chain | July -Sept 2013 FIBRE FOCUS REPRINTED DUE TO CORRECTION
  31. 31. ADVT.
  32. 32. In spite of a last minute change in v e n u e d u e t o u n f o r e s e e n circumstances, the twin shows; Fabrics & Accessories Trade Show (F&A Show) and India International H o m e Te x t i l e Exhibition (Homtex), which concluded on May 25, 2013, turned out to be a highly successful exhibition with a majority of the p a r t i c i p a n t s a p p r e c i a t i n g t h e superior, business-like environment besides the high quality of visitors. The show was held at the Bangalore International Exhibition Centre, Bangalore, May 23 - 25, 2013. “Even the number of visitors was not affected and we were able to maintain it at the same level as that of last year’s,” said Mr P. Krishnamurthy, CEO & Executive Director, S S Textile Media (Pvt) Ltd, organizers of the events. A total of 124 exhibitors, besides a separate Chinese pavilion, and 3,154 visitors from all over the country besides countries like Japan, South Korea, Thailand, Singapore, Mauritius, Sri Lanka, UAE, France, Spain, Brazil, UK, etc. attended the show. Exhibiting companies, once again, presented a top-class range of textile products to highly qualified trade visitors from all over the world. The show was therefore able to further develop its position as India’s leading event and business barometer for the textiles and accessories industry. F&A Show stands for innovation and quality and attracts a highly international trade audience. The quota of visitors from top management was very high; more than every fourth visitor belonged to the management of a company or was the owner of a company. Over two-thirds of all exhibitors were able to fully or largely reach their target groups at the F&A Trade Show 2013, and the other one third at least partially. Besides approaching new markets, important aims of exhibiting were attracting new customers, product presentation and reuniting with old customer. Excerpts from industrialists, entrepreneurs & alike who participated in the successful show… Mr Dhrub T. Panda, Textile Designer, Gayatri Design Studio, Mumbai, said: “A lot of opportunities opened up for us. The show has been very good with a lot of manufacturers and exporters evincing keen interest in our activities.” Mr Deendayal B. Jhanwar, Managing Director, Shree Ramkrishna (Jhanwar) Texfab Pvt. Ltd., Ichalkaranji, noted: “The show was really good for us; we were able to meet new customers and had visitors from China, Korea, Sri Lanka and even Turkey. The people who came to our stall were genuine and appreciated the range of our new products displayed. The facilities at this location are also par excellence.” Mr Rakesh Patel, Proprietor, Satvah Creation, Ahmedabad, said: “This is the first time I am participating at this show and I must say it has been very effective. This is a good show with lots of quality buyers. We even had buyers from Spain, France and Sri Lanka.” Visitors too were extremely positive about the F&A Trade Show. 93% of the visitors rated the show as excellent and could find new vendors from whom they could possibly source their requirements. But said, they would have been with a few more stalls and variety especially in the trims and accessories; and home décor segments. Mr Koji Asai, Senior Leader, Flex Japan Co. Ltd., Tokyo, said: “The show gave me an insight into what India had to offer, especially the very interesting patchwork at Satvah, an exciting range of cottons from Ramkrishna Group stalls.” Mr Mandeep Singh, Senior Merchandiser, Global Brands, Li & Fung (India) Pvt. Ltd., Gurgaon, noted: “The show is good with a lot of fabrics. Overall, it’s been a good experience and I found some interesting products at the Angel Group, Uflex stalls, especially, new laces and trims. I wish there were a few more stalls.”   KEY RATES UNCHANGED: AEPC DISAPPOINTED WITH RBI STAND 17th June 2013, Gurgaon In the credit policy issued today, RBI has not touched the Key rates and unchanged. In his reaction to RBI's monetary policy, Dr.A. Sakthivel, Chairman - AEPC said Industry has been disappointed with RBI's Stand. Apparel SMEs were expecting a rate cut of 0.5% which is mainly required to remain competitive in the international market due to higher interest rate. The median lending rates on pre-shipment Rupee export credit upto 180 days ranged between 10.55 – 13% in end 2012 as compared to 10.75 – 12.88% in March, 2012. These remain high in same range. Dr. Sakthivel noted that in last financial year the Tirupur district banks had fixed a credit target of Rs.3,661 crore, whereas the credit availed by the units were only Rs.2,742 crore which is 75% of the target. Out of Rs.70000 crores of garment exports, approx. Rs.52000 crores exports is from SME sector (75%). The Industry is not able to take credit at such high rates and losing its competitiveness in the world market. At the beginning of the 12th Plan period, the outstanding credit gap for the MSME sector is estimated at 62%, which is estimated to reduce to 43% in March, 2017 with the assumption of minimum 20%year-on-year credit growth to MSME sector. Thus rate cut is necessary to achieve this and reduce gap. The figures truly reveal that the units are reluctant to avail the credit due to higher interest rate apart from market conditions. The garment exporting units are expected to invest in product development and also replace the old machineries to remain productive and therefore, the credit needs are required to be replenished at a flat rate of interest. AEPC has proposed a flat rate of 7.5% on pre and post shipment export credit under a separate chapter for exports.   AEPC PRESS RELEASE 30 Textile Value Chain | July -Sept 2013 SHOW REPORT F & A Show & HOMTEX, TWIN SHOWS

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