Strengthening the Base of the IndustryNormally all Novembers and Decembers are quite pleasant throughout India, but not for the trade andindustry which is gripped by the Budget fever, till the Honble Finance Minister delivers his Budget Speechin Parliament.This year was no exception. The textile industry was anxiously awaiting reduction in excise duty on man-madefibres and had sleepless nights. But the bonafide expectations of the man-made fibre textile industry was dashed tothe ground on the D-day.Even though productivity of Indian cotton is much lower than the world average, the country is still the second largest producer of cotton inthe world. This is so because uptil now, the country was generous enough in making available land for cotton cultivation. Such a situationmay not continue for long. After all India is a land-deficit country. There are competiting claims on lands for various purposes likeAgriculture, infrastructure, industrial projects, social needs, housing etc. Besides, Cotton cultivation requires large quantities of water, butwater is scarce.In such circumstances, the pressure on cotton must be lightened. Hence, the excise duty on cotton stream of production on the one handand man-made fibres and man-made fibre textiles and ready-made garments on the other must be the same, so that the decision of theconsumer is not unduly influenced by the level of taxation. The distinct preference of Aam Admi for polyster-based fabrics should not beoverlooked. In the years to come, when at the global level, production of cotton is going to fall short of its requirement, willy-nilly, there isgoing to be a reversal of role between cotton and man-made fibres. Hence, Government has to create conditions which are conducive tomuch larger investments in the manufacture of man-made fibres.This view of neutrality intaxation gets a direct support from the National Fibre Policy put forward by the Ministry of Textiles, Government ofIndia. This will create a true level-playing field, for diverse fibres, whether natural or artificial and synthetic, to grow on their intrinsic strength.While some sections of the industry were cheerful at the Budget, some expressed disappointment. The Union Budget is an effectiveinstrument to reinvigorate national economy. The Budget has generally generated optimism with regard to fiscal correction and higherGDP growth. The phase of subsidy adjustment has started with the oil sector. It may be possible to discipline the subsidy bill at 1.6 per centof GDP. The proposal to set up National Manufacturing and Investment Zones as proposed by the Commerce Ministry will help increasethe share of manufacturing in GDP to 25 per cent from the current 16 per cent and create100 million jobs in 2025.So far as the textile industry is concerned, the critical issues are availability of raw materials inrequisite quantities at right prices and at right times, infusion of sophisticated technology on acontinued basis, taxation policy and general economic conditions. The Budget has largelyaddressed these issues, except excise duty on man-made fibres and man-made fibre textiles.thContinuation of TUFS in the 12 Plan, availability of exempted and cenvat routes for alltextiles including garment reduction in basic customs duty on certain textile machinery partsfrom 7.5% to 5% are all welcome and encouraging steps which are a good augury for thetextile industry.
Mr. G. Banerjee - Management & Industrial ConsultantMr. Shiv Kanodia - Sec. General, Bharat Merchant Chamber
thEventful 4 Quarter at SiyaramsCORPORATENEWSSiyaram launches Prism & Estro under its elegant Italian brand Moretti in IndiaAfter successfully launching the premium Italian fashion brand Moretti in India, Siyaram Silk Mills Ltd. has added 2 vibrant collectionsunder the same brand for the fashion conscious Indian male. The event was held at The Retreat, Malad, which comprised of a Fashion Show tohighlight the latest offerings by Moretti. The collections were strongly appreciated by the dealers and retailers which was evident from the factthat a record booking of over Rs. 7 crores was registered in just 2 days after the launch of the collections.Prism, as the name suggests, is the only collection in the market that boast of 1000+ plain qualities & colours to choose from. Prism isavailable across one lakh MBOs and is priced at Rs. 600 – 1000 / mt. On the other hand, Estro is a bold collection of fancy dobby & colours invarious designs. Estro is available across one lakh MBOs and is priced at Rs. 700 – 1000 /mt. Both the collections are made from 38 – 42mm length of high value pure Italian cotton yarn – unmatched by any player in the Indian textilemarket.”Siyarams Adds Two Vibrant Collections under RoyaleLinenAfter the successful launch of Royale Linen – a linen fabric brand last year,Siyarams has added 2 vibrant collections, Purito and Vivante, under the samebrand for the linen loving fashion conscious Indian male. The event was held onst21 March at InFashion in Goregaon, Mumbai.Mr. Manish Malhotra, renowned Bollywood fashion designer and the brandambassador for Royale Linen, expressed his joy after inaugurating the new RoyaleLinen collections – “It is a wonderful feeling being associated with a brand likeRoyale Linen. It has been offering the purest and most premium linen fabric whichtransfers the royal appeal to the person wearing it. The new collectionslaunched today are unique, vibrant and still pure ones which I feel areMISTAIR - Style Partners for INKAAR launches POWER PLAYcollectionMistair– a division of Siyaram Silk Mills has been associated with Viacom 18 MotionPictures next as a style partner. The association between Mistair and Inkaar was facilitatedINKAARby Carat Fresh Integrated, an experiential marketing agency of Aegis Media India Group.Present at the event was Mr. Ramesh Poddar, Managing Director and Chairman of Siyaram Silkmills along with the star cast of Inkaar. The highlight of the event was the fashion show that unveiledthe Inkaar inspired collection called “POWERPLAY” with the showstopper being none other thanInkaars lead actress Chitrangada Singh.Siyarams launches Wedding AffairsSiyaram Silk Mills Ltd., has recently launched a collection of fabrics that are tailor madefor the Indian weddings. The launch was done at the popular InFashion 2013 exhibitionthrough a glittering Fashion Show at Goregaon, Mumbai. The collection consists of fabricsof various premium qualities & colours that are synonymous with the fashion consciousIndian male during wedding celebrations and is named Siyarams Wedding Affairs.Mr. Ramesh Poddar – Chairman & MD (Siyaram Silk Mills Ltd.) said, “Wedding is notjust about the bride and the groom. It is about 2 families coming together for a jovialcelebration. Wedding Affairs is a collection of carefully handpicked premium fabrics that areideal to dress up men for a great Indian wedding. In a nut shell, it is an exclusive ensemble fordiscerning bridegrooms, this blend of fine fabrics, vibrant colours and rich textures that isideal for occupyingcentre stage & making weddings a grand, special affair.”The collection costs from Rs. 400 – Rs. 1000/- and is available across 1,00,000 MBOs in India, apart from the 120 oddexclusive flagship showrooms of Siyarams Shop. It is supported by strong pan India Print, Outdoor & digital campaigns that are expected to scaleup the awareness and visibility of the collection.The entire range of Powerplay is exclusively available at select retail outlets. It is an ideal choice to get that perfect corporate look forconscious youth who opts for stylish formal wear to create an impression in their workplace. Keeping in mind the young agesegment that Mistair caters to, Powerplay has been offered in vibrant colours, thereby making it a complete techno-commercial collection.Siyaram Silk Mills had always been a conservative brand which works on principles. This is the first time that they have ventured into amovie association which is their next step towards being accepted as a youth brand . They would look at many such associations in future.meant for a pro-fashion persona like me.Purito, as the name reflects is the collection of pure plain colours which gives the consumer more than 50 different variations to choosefrom. The major attraction of Purito is a range of Pure Whites which is available in 125 Lea. Vivante as the name suggests is the uniquecollection made from 150 Lea presented in various colours. Both the collections are available in 1,00,000Multi Brand Outlets in country.Textile Value Chain | April - June 201310
Raymond, Rajasthan Govt sign MoU to setup the States first Tailoring Centre Centres to be located at Jaipur,Jodhpur Raymond to educate, empower anduplift tailoring community,underprivileged youth, minoritycommunity and women in the State State Govt. to provide infrastructure Follows successful implementation inBihar last year; the Centre offeredplacements to first batch of students inMarch 2013Jaipur, April 4, 2013: Raymond Ltd., Indiasleading manufacturer and retailer of fabricsand garments, today signed a Memorandumof Understanding (MOU) with the RajasthanIndustries Department towards setting up ofthe innovative Raymond Tailoring Centres inJaipur and Jodhpur, with the support ofRajasthan Skill & Livelihood Corporation.To be set up in BaisGodown IndustrialArea, Jaipur and near the Rotary Circle,Jodhpur in 6000 sq.ft of built-up area each,Raymond Tailoring Centres will imparttailoring skills to underprivileged youth andtailors. This is an ideal example of Public-Private-Partnership as Raymond will providestate-of-the-art machinery and trainers forthe centres while infrastructure will beprovided by the Industries Department andRajasthan State Livelihood DevelopmentCorporation. The Center shall train over500 students per year in various aspects oftailoring including suit, shirt and trousermaking over the next five years. Theminimum qualification for admission to theRaymond Tailoring Center is 8thstandard pass.Talking about this association, Mr SunilArora, Additional Chief Secretary ofIndustries Department, Govt of Rajasthansaid, “This is a unique opportunity that theRajasthan Govt. wishes to offer the weakersections of the society towards building askill. This, we believe, is an integral part ofour plans to empower the people ofRajasthan and help them lead a quality life. Itis commendable that leading companies likeRaymond are coming forward to participatein developing the minorities and weakersections of the society. The State Govt. isgiving Raymond a built-up infrastructure torun this Tailoring Centre.”Mr. Aniruddha P. Deshmukh, President– Textiles and Retail, Raymond Limited, said,“We are pleased to unveil our plans to launchthe Raymond Tailoring Centre in anillustrious state like Rajasthan. The RaymondTailoring Centre will help the tailoringcommunity acquire professional skills, thusencouraging the youth of the State to findvalue in pursuing tailoring.Mr Ram Bhatnagar, Vice President –Emerging Businesses, Raymond Limitedadded, “Considering technologicaladvancements in the sector, TheRaymond Tailoring Centre module includestraining candidates on the latest modernmachinery and use of best tailoring practices,all at no financial expense to students. Specialfocus shall be given to encourage women topursue our programs through reservationfor them. We are proud to have the supportof the Govt. of Rajasthan for this unique andinnovative initiative.”Raymond is taking pioneering steps indeveloping the ecosystem of the sector. Thecompany believes in the ideology ofgrowing together. It has been thecompanys endeavour to rejuvenate thefading art of tailoring and in this direction hasinitiated several steps. The Centre holds thevision of imparting training skills tounemployed, underprivileged youth andexisting tailoring community, be theirupgrading their current skill sets ande n c o u r a g i n g e m p l o y m e n t a n dentrepreneurship. This training helps themupgrade their tailored product quality interms of finish and style, earn better revenueand thereby improve their social andeconomicstatus.Raymond Tailoring Setup in RajasthanCORPORATENEWSAdvt.
INVISTA is one of the worldslargest integrated producers ofpolymers and fibres, primarily fornylon, spandex and polyesterapplications. INVISTAs global businessesdeliver exceptional value for customersthrough technology innovations, marketinsights and a powerful portfolio of global®trademarks including COOLMAX fabric,® ® ®CORDURA fabric, freshFX fibre, LYCRA® ®fibre, SUPPLEX fabric, TACTEL fibre, and®THERMOLITE fabric.Jan 2013 INVISTA teamed up with toARVINDbuild new roads into the high potential globaldenim market. This association seeks to bringto India the best of technologies fromINVISTA together with the denim fabricmaking expertise of ARVIND, to piecetogether an eventful journey for the Indiandenim market going forward. LYCRA® brand owner INVISTAannounced that it had joined the SustainableApparel Coalition (SAC). The SAC is agroup representing more than 60 leadingapparel and footwear brands, retailers,suppliers, nonprofits and nongovernmentalorganisations working to reduce theenvironmental and social impacts of appareland footwear products around the world.The SACs main focus is on sustainability in theclothing and footwear industries.Feb 2013 launched its latest range ofARVINDstretch denim fabrics with LYCRA® fibre att h e m u c h a w a i t e d L Y C R A ®RENDEZVOUS. This launch broughttogether the best of INVISTAs textileinnovations together with the denim fabricmaking expertise of ARVIND. Thusestablishing a milestone within the Indiandenim market innovation journey. Arvindstretch denim with LYCRA® fibre waslaunched under two key themes of Denimglam and Pop vintage. Aamir Akhtar, CEO,ARVIND Denim said, “From Arvind, weensure a stretch that performs and stretchwhich provides freedom to the designer tocreate a fashion denim he/she would want tocreate. We have also mastered extremely difficult stretches with LYCRA® fibre likeStretch Selvedge Denim, Stretch JacquardDenim, Super soft high recovery excel stretchdenim and many more”. LYCRA® brand owner INVISTAannounced its collaboration with global sportsand lifestyle brand on a new premiumPUMAproduct innovation in performance apparel.PUMA unveiled a range of training tights,shorts and tops this month: PUMA ACTV andPUMA RCVR. Both take performance wearto the next level, by utilizing LYCRA® SPORTfabric in a first-to-market use of both athletictaping and enhanced compression within thegarments. PUMA ACTV has been awardedthe sports industry ISPO Gold Award qualityseal in the Compression Apparel category, atISPO 2013. offers its andINVISTA COOLMAX®THERMOLITE® fabric technologies to caterto the performance socks category in theIndian textile and apparel market. INVISTA isworking across the value chain from spinnersto socks knitters to retail brands and therebyfacilitating the development of performancesocks in the country. Packed with moisturemanagement technology and comfort,COOLMAX® Socks cater to the end-consumers need for dry comfort and highperformance. Mr. Rohit Pal, RegionalManaging Director, Renfro Europe and Asiastates, “Renfro Corporation is the largestglobal hosiery company in the world. RenfroIndia is the market leader in domestic as wellas export market in the country and has aportfolio of 10 licensed brands and exports.Globally Renfro Corporation and locallyRenfro India lead technological innovation,selling more than 700 million pairs of socksglobally. COOLMAX® Socks offer to theretailers an innovative yarn with severalperformance characteristics and are beingwidely used by several licensed brands.”March 2013I N V I S TA s c o n c l a v e LY C R A ®RENDEZVOUS at the Taj Palace, New Delhiwitnessed leading mills and brands from thetextile and apparel industry such asVardhaman, Banswara Syntex, Arvind Limited- Denim, Mafatlal Denim etc. The curtainsopened to an action packed day, full ofinsightful discussions and product showcaseby INVISTAs key customers, launch of itslatest innovation LYCRA® T166L fibre,unveiling of ARVIND Stretch Denimpowered by LYCRA® fibre, futuristic paneldiscussions amongst the best of think tanksfrom the industry and a scintillating denimfashion show. The new product offering byINVISTA - LYCRA® T166L fibre has beenespecially designed for robust processingperformance in the manufacturing of stretchwoven fabrics and possesses good recoveryand low growth that are essentialrequirements for the denim industry.INVISTA also showcased its global denimconcept collection for Spring/Summer 2014.The collection encompasses innovativegarments highlighting INVISTAs keytechnologies for denim including TOUGHMAX™ LYCRA® fabric, XFIT LYCRA®fabrics, LYCRA® dualFX® fabrics andCOOLMAX® fibre and new under key 3themes - Fantasy, Reality and Harmony.Featured styles under Fantasy comprise ofpearlized coatings, reflective surfaces,coloured weft yarns, prints and tie-dyeeffects; Reality features simple evergreendenim structures and neon colours;Harmony collection represents performancedenims with knit inspired jacquard weaves ofcotton and LYCRA® fibre.Latest Offerings from the World of INVISTAApril 2013INVISTA, added on to the Indian textileinnovation landscape as it showcased its 3premier global innovations, LYCRA®dualFX® fabric, COOLMAX® BLACKfibre and THERMOLITE® insulation at theth8 edition of Fibres & Yarns exhibition fromApril 11 to April 13, 2013 in Mumbai.LYCRA® dualFX® fabric enables creation ofsuper stretch denim with extra comfortable fitthat lasts longer. COOLMAX® BLACK fibretechnology supports the growing trend forblack colour in various apparel segmentsspecially socks and sportswear.THERMOLITE® insulation from INVISTA isa high performance offering to the growingoutdoor industry in India.CORPORATENEWSTextile Value Chain | April - June 201312
Arvind Lifestyle Brands, a subsidiary ofArvind Ltd, one of the largest players inthe apparel brands and retail space, todayannounced an agreement to market andsell basic and intimate apparel in Indiaunder the Hanes and Wonderbra brands,two of the largest and well-known globalapparel brands, under a licensingagreement with U.S. based HanesbrandsInc.Announcing the licensing agreement,Mr. Sanjay Lalbhai, Chairman & ManagingDirector of Arvind Limited said, “Thistransaction is a significant milestone as itsignals our entry into the highly lucrativemarket of branded apparel essentials withlingerie and undergarments. This marketsegment of branded essentials isestimated at over Rs. 18,000 crore and isexpected to grow over 18% fromthereon year-on-year. This new marketniche, thus, offers a completely distinctand promising business opportunity forus, which will only help furtherconsolidate our position in the Indianmarket.”CORPORATENEWSArvind Enters Agreement for Licenses of Hanes and Wonderbra Trademarks in India and acquiresHanes Brands India OperationsArvind Lifestyle Brands Ltd,recently announced that it has signed along term licensing agreement with IconixLifestyle India Pvt Ltd, a JV between IconixBrand Group, USA and Reliance BrandsLtd for Ed Hardy. Ed Hardy is thealternative lifestyle fashion brand thatcelebrates the classic American tattoo asan art form across apparel andaccessories.Arvind Lifestyle Brands Limited, willhold the exclusive multi-year license tomanufacture and distribute Ed Hardyapparel and accessories throughout India.Ed Hardy is projected to launch in Indiaduring Autumn/Winter 2013 with a newglobal product and price strategy.J Suresh, MD and CEO ArvindLifestyle Brands Ltd & Arvind Retail Ltd.,said, “Ed Hardy is a well-knowninternationally recognized brand andenjoys the status of a cult classic withmassive fan following and a unique cuttingedge image. We are thrilled to work withIconix Lifestyle to bring Ed Hardy intoIndia. As the brand rolls out in AW13, weforesee a very successful launch. EdHardy will also substantially strengthenour portfolio in the youth segment.”Commenting on the alliance, DarshanMehta, CEO of Reliance Brands said,“Tattoo art has a timeless appeal and EdHardy celebrates its history and beauty bycreating dynamic apparel and relatedlifestyle products. We could not ask for abetter partner than Arvind, as theyunderstand this market extremely welland are equally committed to growingthe Ed Hardy brand in India.”“Tattoo art has a timeless appeal and EdHardy celebrates its history and beauty bycreating dynamic apparel and relatedlifestyle products. We could not ask for abetter partner than Arvind, as theyunderstand this market extremely welland are equally committed to growingthe Ed Hardy brand in India.”equally committed to growing the EdHardy brand in India.”Arvind’s Joint Venture & AcqusitionGerald Evans, Co-Chief OperatingOfficer of HanesBrands said, “We arevery excited to enter this licensingagreement in India for two of thestrongest global brands with Arvind, aleader in the apparel and retail market.Our Hanes and Wonderbra brands havegreat growth potential in the lingerie andbranded apparel essentials market inIndia. We are confident that ArvindLifestyle Brands Ltd., which has one ofthe largest portfolios of licensed USbrands in India, is the right partner for usto aggressively expand growth in India.”“In the past we have focused on and builta strong position in the Indian menswear,womenswear and kidswear segments,with one of the strongest portfolios ofhomegrown and acquired global brands.It was only logical then, that we look atthe branded apparelssegment. The 100-year-old Hanes brandis the No. 1 apparel brand in the UnitedStates and offers comfortable, high-quality underwear, intimates, casualwear,hosiery and socks. A leader in innovation,Hanes is responsible for bringing to theindustry creative ideas like Tagless tees,Comfortsoft waistbands and EZ Sortsocks. Arvind plans to increase thecurrent number of Hanes points of salesin India from 5,000 to 15,000 in the next3 years.In the womens intimates segmentworld famous Wonderbra brand ofintimates which is known to empowerwomen by making them feel sexy andconfident, is expected to be a lead brand.The Wonderbra brand offers women acomplete line of bras and lingerie.Market Size of Innerwear MarketMens InnerwearWomens InnerwearRs. 7,200 CrsRs. 10,800 CrsRs. 18000 CrsTotalOrganizedUnorganizedCAGR: 18%60%40%Arvind Lifestyle Brands Ltd enters into Licensing Agreement with Reliance Brands & IconixBrand Group JV for Ed Hardy Brand in IndiaTextile Value Chain | April - June 2013 13“A life spent making mistakes isnot only more honourable, butmore useful than a life spent doingnothing.”George Bernard Shaw
FEEDBACK FROM INDUSTRYTVC thanks , for his feedback after reading our issues & stated,Shri. Vijay Raut, VP of Garware Wall Ropes Limited“Please accept my thanks and congratulations on the success of Textile Value Chain with the objectives of ReshapingTextile Industry. While much has been written on textile topics, the magazine has topics that are easy to understand withexcellent background information, well documented, explained so clearly, will surely be of great value. Please keep suchfine quality printing and good design. Keep up the good work .”The Story behind Reality BitesTextile Value Chain | April - June 201314TVCCORNERJuly – Sept 2013 Issue HIGHLIGHTOur Cover Story for next issue is In this super competitive world, what is theValue Addition.USP of your company? What Value do you add to your product/s to be better than yourcompetitor?Alongside, we also have the continuation of our section covering, creditReality Bitesratings, banks and finance institutions regarding their policies of giving loans and guarantees totextile industry.We invite our readers and our future subscribers to contact us to share their stories regardingloans and guarantees for our feedback column and/ or interviews & articles for our next issue.Also, if you would like to advertise with us be it textile or fashion companies, and banks andfinancial institutions; please contact firstname.lastname@example.org ; call : 022-21026386Correction in Issue Name: Vol 1, Issue 4,Visual Merchandising & its Effects on Sales Page no: 40 Not mentioned Second Authors NameSecond Author name along with Dr. Sabita Baruah, DIPTI SALVE Department of Textile Science & Apparel Design, SNDT Womens University Typing error in Advt. It should read Klassic FabricsWe deeply regret the errors and did not wish to hurt the concernedintentionally.Whether we like it or not, India has been affected by the global recession. Our current GDP for 2013 is 6.5%which was estimated at 8-9% earlier. In these trying times, Textile Industry receiving/ expecting loans and guaranteesfrom banks and finance institutions has hit rock bottom. Hence it becomes even more imperative that we use ourresources ingeniously and with utmost sincerity.Our Reality Bites section for our Anniversary Issue covers the current state of affairs of the textile industry, yarnbeing one of them. In the next chapter we move to the importance of project planning and management forcompanies to function at a higher level of functioning. Further more we have interviewed businesses that are directlyand indirectly related to Textiles, who spoke about their projects and obstacles they face to complete them in timelyfashion. Moving over we interviewed project consultants and project managers to talk about their success stories sothat our Industry can use such services for streamlining their projects.We will conclude our reality bites section in our next issue where we will cover credit ratings for companieswhere the ratings help them to acquire loans. We will also cover banks & finance institutions regarding their policiesof giving loans and guarantees to textile industry be it, MSMEs, SMEs and industrialists.With Chinas equation changing daily, its a great opportunity for India to realize the importance of ProfessionalPlanning to set up new businesses in India.
15Textile Value Chain | April - June 2013REALITYBITES Success Story of Yarn & Issues Facing the Textile IndustryTamil Nadu enjoys a place of pride in the textile map ofIndia. Tamil Nadu accounts for 47.5 % of the spinningcapacity in the country. Fortunes of the weaving andgarmenting industries are inter woven with the spinningindustry & spinning industry consciously playing its role as abig brother, which is evident from the fact that despite agrowth rate 7% to 9% of the Downstream sectors, yarn hasmaintained a growth are of 12%.In a Freewheel interview to TEXTILE VALUECHAIN, Shri S. Dinakaran, Chairman of SIMA(Southern India Mills Association), unravels thesuccess story of Yarn.Before the interview started with Shri S. Dinakaran, ahighly respected stalwart of the textile industry startedfielding questions from TVC team; Dr. K. Selveraju, theebullient Secretary General of SIMA, who is alwaysbubbling with new ideas, reeled of statistical dimensionsto the Growth of the Spinning Industry. Dr. Selverajuexplained as follows:Though yarn production capacity has been increasingyear after year, the growth of yarn consuming segments likehandlooms, power looms and knitting have not grown intandem with the capacity building in yarn production. Thehandloom segment is shrinking day by day.Of all the segments, spinning sector has been mostmodernized and earned global reputation of being thereliable supplier of yarns of international quality. It would takesome more time for the downstream segments to upgradetechnology to use the high quality yarn, which attractsinternational buyers.The number of handlooms in the country had comedown drastically to 23.77 lakh looms as per the 3rd NationalHandloom Census 2009-10, 28% less than the previouscensus (1995)figure of 32.96 lakh looms.The prime raw material of the Indian Textile Industrycontinues to be cotton. Cotton consumption by Non-SSIand SSI sectors during the year 2012 registered an increaseof 7% over the pervious year. Cotton consumption duringthe year stood at 232 lakh bales as against 217 lakh bales inthe previous year.All yarn production during the year 2012 registered anincrease of 6.4% over previous years production. While theproduction of cotton yarn registered an increase of 9.2%,production of blended yarn has come down by 1.1% whencompared to previous years production, production ofblended yarn remained at the same level of previous yearProduction of cotton yarn during the year 2012 stood at3451 million kgs, blended yarn at 802 million kgs and non-cotton yarn at 455 million kgs while the same was at3159 million kgs, 811 million kgs and 454 million kgrespectively during the previous year.Domestic consumption of all yarn during the year 2012registered an increase of 7.9 per cent over the previousyears consumption. Domestic consumption of all yarnduring the year 2012 stood at 3672 million kgs, while thesame was at 3404 million kgs last year.Domestic consumption of cotton yarn during the yearstood at 2632 million kgs, 8.9% higher than the previousyears consumption of 2417 million kgs.The country has earned good reputation of supplier ofinternational quality cotton yarn. Registrations for cottonyarn exports during the year 2012 stood at 961 million kgs asagainst the previous years registrations of 725 million kgs,the lower quantity is because of the ban prevailed during theinitial months of the year 2011.Increased exports during the year had been mainly dueto the shift in Chinas policy of increased imports of cottonyarn, because of cost advantage.Unlike any other textiles manufacturing country, thecountry has a number of positive factors to its advantage –complete value chain, encouragement for upgradingtechnology, skilled man power, etc.At this stage, Shri S. Dinakaran entered intothe dialogue with TVC...Shri S. DinakaranChairmanSIMATVC: TVC is glad to learn that Spinning Industry is aboutto hit a sixer in 2012-13 by export of cotton yarn of 1000million + kg. Tell us how the industry could achieve thisrecord-bearing hit?S.D.: The Industry has been subjected to many hurdles suchas power shortage, high cost power, recession, etc. Despiteall these hitches, if the industry could cross the 1000 millionkgs mark, it is mainly because of China factor. China accountsfor 30% of Indias cotton yarn exports, while Bangladeshaccounts for 16%. China imports a substantial amount ofcotton yarn from India, as the cost of production in China is
16 Textile Value Chain | April - June 2013REALITYBITEShigher due to high cotton prices and labour cost. China mightprefer import yarn rather than cotton from countries likeIndia and Pakistan in the years to come. Hence, India hasgood potential to improve its yarn exports.The biggest employment provider industry had its ownproblems and obstacles on the way. The industry is largelyfragmented and needs integration and balanced growthamong various segments to increase the unit value ofexports. Even under difficult times spinning industry iscapable of exporting around 100 million kgs/ month duringthe last three months, around 1/3 of production aftermeeting the domestic demand fully.Cut-throat competition can not be avoided in theglobalised era, where every country thrives hard not only tosustain but also to improve their share in the global market.The only way is to improve the productivity and achieve costadvantage. However in this era, not only the cost but alsoexternal factors like conditions of the importing countries,fluctuation in forex rates, etc., have their say in productpricing and competitiveness.Volatility in the prices of cotton, cotton yarn or any othercommodity is natural and can not be avoided. Imposingunnecessary controls results in adverse effects, which forcedthe industry into recession because of controls imposed oncotton and cotton yarn in the recent past.The countrys textile exports, which had been dependanton the demand from the US and EU markets had been badlyaffected because of demand compression due to economicrecession for the past five years. But thanks to the marketdiversification initiatives encouraged by the Govt. and theindustry could venture into new markets. In the future, theindustry is sure to become a significant player not only incotton yarn but also in other textile products alsoSpinning industry should be taken out of the clutches ofthe Hank Yarn Obligation Scheme, which prescribes toproduce at least 40% of the cotton yarn delivered todomestic market in hank form and of which 80% should bebelow 80s count with effect from April 2010. Whereas theindustry is pleading to levy a cess if necessary in lieu of theobligation else reduce the obligation percentage to 25%.Since the number of handlooms have considerablydecreased and the yarn production has increasedsubstantially; practically today the actual cotton hank yarnconsumed by the handlooms would be only around 10%and majority of the working handlooms have shifted silk toearn reasonable wages. Yet another irrelevant policy isHandloom Reservation Act which prevents the powerlooms to produce around 21 varieties of fabrics. But, it isthere only in paper. Majority of such varieties areeconomically viable only when they are manufactured out ofpower looms. Hence, this policy should also be scrapped.Second-hand loom imports could be encouraged byreducing / eliminating the import duty since the country doesnot have sufficient number of loom producers in the countryand help the powerloom sector to modernize in a costeffective manner. In turn they would supply cloth todownstream sectors who in turn would convert them into garments and resort to value added exports.The government should encourage all the links of thetextile value chain and frame comprehensive policies takinginto account all the segments of the industry to become costeffective and also balance the growth of all segments so thatthe country can earn more forex by way of increasing morevalue added products. It is a welcoming feature that TUFSand SITP have been extended in the 12th Five Year Plan witha targeted investment of Rs.1,51,000 crores. Now, it isessential to allocate necessary funds for the pending cases,blackout period (June 29, 2010 to April 27, 2011) and alsosort out various anomalies to create a level playing field andsustain the financial viability of the affected units.TVC: As we understand there were many obstacles inthe way. Could you throw light on the same?S.D.:The Industry is often subjected to recession due tohigh volatility in the raw cotton prices. Consequent to theremoval of cotton from Essential Commodities Act fromFebruary 2007, the multinational cotton traders flooded withcheap funds started dominating the Indian cotton economy.They procure large volume of cotton during the peak season(majority of the cotton arrives the market only duringDecember to March), hoard the cotton and speculate theprices. Unfortunately, the various Govt. polices relating tothe white fibre like offering export incentive withretrospective effect, CCI supplying huge volume of cottonwith six months credit facility with bulk discount, export largevolume of cotton during the peak season and creatingartificial scarcity, low stock-to-use ratio (15% to 20% cottonreserve as against the global average of 40% to 75%), etc.,are not allowing the industry to achieve a sustained growth.The industry has been pleading the government to offerspecial working capital assistance (at 7% interest rate, 9months credit facility and reduction of margin money from25% to 10%) to have a level playing field with themultinational cotton traders who not only have enormousfunds but also have forward cover facility to protect theirtrade. This package would also enable the farmers to getreasonable price for their produce. But the Govt. is yet toconsider this proposal.The industry faced its worst crisis during 2010-11due to unprecedented volatility in cotton and yarn priceswhich led many textile companies to erode its workingcapital. With continued and consistent persuasion made byus, the Govt. announced a debt restructuring package ofRs.35,000 crores in May 2012. However, banks arestepping back in certain cases and we appeal them toconsider all the applications favourably.TUFS was temporarily suspended during the periodbetween 29.6.2010 and 27.4.2011. Expecting and believingthat the TUFS benefit would reach them, many textile millsduring this period invested a lot. This scheme wassuspended without any prior notice and many projects wererejected because of a delay of few hours. Since the Textile
17Textile Value Chain | April - June 2013Machinery particularly the spinning machinery deliveryschedule during this period was more than three years andtherefore, the textile mills had to plan the projects in advanceand could not stop in between. Therefore, we expect theFinance Ministry and Cabinet Committee to consider thisgenuine demand. Similarly, the Textile Ministry is denyingTUFS benefits to the units seeking debt restructuringpackage. In such cases, we expect the Ministry to extend theTUFS benefits under the pending cases without further delayto ease out their financial position and remain healthy.Yet another problem the industry facing is the suddenimpact created by hike in HSD oil prices. Recently, theGovt. has hiked Rs.9.25/ litre of HSD oil for bulk purchaseswhich have a net impact of Rs.11.00/ litre including taxes andlevies. So the industrial units in the power starving States likeAndhra Pradesh and Tamil Nadu which heavily depend ondiesel generators for power generation have to bear thebrunt. What the industry expects from the government isthat the prices should be rolled, exemption from VAT onHSD oil, which would help the textile mills to reduce theirburden.TVC: What is your planning for future and what help doyou expect from the authorities in that regard?S.D.: If the government avoids short sighted and lopsidedpolices and announce a comprehensive textile policy, theIndian textile industry has a tremendous potential to grow.The government should facilitate getting all the inputs atinternationally competitive rates. The transaction costshould be reduced. The GST should be implemented at theearliest without any break or exemptions across the valuechain. Garment sector should become cost effective byemphasizing on modernizing weaving and processing andexpanding the technical textile segment.Availability of quality and constant supply of power atan internationally competitive rate is very essential toremain competitive. Timely disbursement of fiscal and non-fiscal support to the industry without turns and twists in thepolicies already announced, as these would affect theindustries expansion and modernization plans adversely.TVC: Yarn has become competitive in China which isreputed for giving cut-throat competition in textiles.How could the spinning industry increase export toChina and China shifting its yarn purchases from Pakistanto India?S.D.: We understand that the labour cost has becomeexpensive in China. Hence, China prefers to import alllabour intensive textile products from countries like India andPakistan. Currently, it imports large volume of coarse countyarns from these countries, more from Pakistan. Theenquiries for coarser variety cotton fabric are also good. Weneed to quickly upgrade the weaving technology to capturethe international market.TVC: What would you suggest to make cotton yarnsavailable to power looms and knitters at reasonablystaple prices, despite volatility in the cotton market?S.D.: Raw material accounts for 65% of the yarn cost.Unless the cotton price is stable, it is impossible to bringstability in the yarn prices. If we look at the cotton and yarnprices prevailed during the years 2003-2008, they werestable. The problem started only when the multinationalcotton traders entered the Indian cotton market. Varioustrader friendly policies of the Govt. (like high import dutyduring 2008, abrupt increase in MSP, 5% export incentivewith retrospective effect, bulk discount and liberal creditfacility offered by CCI, holding of stocks by CCI, exportingthe entire earmarked quantity of cotton in a short span, etc)enabled the trade to hoard cotton, create artificial scarcityand speculate on the prices. Hence, during the last fivecotton seasons, there is no stability in the cotton and yarnprices.Tamil Nadu which accounts 47.5% of the spinningcapacity has been facing acute power shortage. Hence,uncertainty in power supply, heavy under utilization ofmachines and man power, abrupt increase in captive powergeneration cost, steady increase in labour cost, etc., makethe yarn prices unstable.TVC: As a Textile Analyst, we read a lot about the USAand Europe on the threshold of achieving a turnaround.Still there is despondency in the downstream segments ofindustry. Kindly comment.S.D.: I do agree that there is a downward trend for thedemand for textile products in USA and EU countries. Butthis will not be so for long time and I expect that the situationwould improve shortly. Moreover, we need to concentrateon markets in East and far Eastern countries for our products.We are aware of the problems of downstream segmentsespecially due to the closure of processing units in Tirupurand nearby areas following the Honourable High Courtorders. To overcome this problem, the processing unitsshould shift their base to seashore, treat the effluents and letit into the marine to remain cost effective. This is only a long-term option available before the processing units.TVC: Do you think success story of yarn will induceGovt. to treat spinning on par with weaving, processingetc., for the purpose of benefits under TUFS.S.D.: Indian spinning sector has proved its competitivenessin the global trade and the same should be sustained in futurefor which the Govt. should encourage the spinning but at thesame time encourage the other sectors also to upgrade theirtechnology and capacity expansion to have an edge in theglobal cut throat competition and countrys share in theglobal textile trade. The Govt. has already decided to givemore thrust on strengthening the weaving and processingsectors in the 12th Five Year Plan and is expected toannounceattractive schemes under TUFS and SITP.REALITYBITES
Theres a well-said quote by Benjamin Franklin“By failing to prepare, you are preparing to fail”.Planning is the most crucial aspect for a successful project.These days, the investors planning to invest in amanufacturing unit are facing huge problems of project delayor failures due to various reasons like delayed disbursementof funds by financial institutions, inappropriate projectmanagement team, inadequate knowledge of projectexecution, etc. For a project to be devoid of cost overruns,schedule delays and poor quality execution, the investorneeds to execute the project with effective projectmanagement methodology.Project Management: Project management is defined asthe application of knowledge, skills, tools and techniques toproject activities to meet project requirements andorganizing and managing resources so the project iscompleted within defined scope, quality, time and costconstraints. It involves planning, organizing, and managingresources to bring about the successful completion of theproject. Following is the framework that is generally followedfor successful project management :18 Textile Value Chain | April - June 2013REALITYBITESProject PlanningMr. Avinash MayekarMD & CEO,Suvin Advisors Pvt. Ltd.1) Pre-designing, 2) Project Management and3) Construction Management1) Pre-designing: In pre-designing, various activities likeSite plan, Master Planning, Drawings for StatutoryApprovals, Utilities Data Collection, Design Conference,Basic Data Fixation etc. is taken care of. Preparation ofMaster plan is done by exploring the various possibilities andaspects for the suitable development of the site, from thepoint of view of Industrial planning and architectural design tobe shown in a site plan, considering effective use ofclimatology and natural site gradients & overall planning bygiving due considerations to man, material andmanagement. The built-up area is fixed by consideringvarious units, utility area, ancillary buildings, power plant etc.The prime focus should be given on a “Designconference” where all the stakeholders such as the client,Consultants and suppliers contribute to finalize all variables ofthe project after considering all other options. Thisconference needs to be organized to arrive at building utilityand machinery details from all suppliers & theirrecommendations and to freeze all design parameters. Asper approved data of individual units and master plan duringdesign conference, a basic data fixation report should beprepared, which would be referred to as a bible and wouldforms the basis for further designing & planning, coveringbuilt-up area, statement of utility requirement for machinery,building specifications, utility requirement and equipmentspecifications, design conditions, time schedule and budget.2) Project Management: Project management revolvesaround the objectives of scheduling, effectively estimatingcosts, working out cost benefit analysis, preparing file notewith single line diagram, preparation & evaluation of tender,prequalifying & approving contractors, givingrecommendations and preparation & submission of design &working drawings.The geo-technical analysis of the proposed site needs tobe carried out with particular regard to size, surface, shapeand level conditions, load bearing capacity of subsoil andsurface water conditions, water supply, yield of wells,interpretation of water analysis, drainage, disposal of rainwater & waste water and industrial effluent, electric powerconnections, climate and meteorological data, rainfall,velocity & direction of prevailing winds, municipal/ local rules& regulations etc. If, in the course of investigation regardingwater supply, load bearing capacity of sub-soil and sub-soilwater conditions, it is found necessary that civil work likeexcavation pits, boreholes or load tests has to be carried out,the same will be carried out. If an up–to–date contour planand survey map is not available it should be arrangedaccordingly.Based on geotechnical analysis of the site and masterplan prepared, architectural drawings should be prepared forinfrastructure, production buildings and ancillary buildings.The primary challenge of project management is toachieve all of the project goals and objectives while honoringthe preconceived project constraints. Typical constraints arescope, time, and budget. The secondary—and moreambitious—challenge is to optimize the allocation andintegration of inputs necessary to meet pre-definedobjectives.In the Project execution stage, multiple agencies worktogether on parallel activities. The challenge lies in constantmonitoring of each activity, quality check and taking mid-course correction if required, enabling an efficient andsmooth implementation of the project.There are 3 major steps to be followed for projectmanagement :Execute & ControlInitiate Prepare• Scope Manegement• Workplan Manegement• Resource Management( Time, Cost, People)• Deliverable Management• Quality Management• Transition Management• Vendor ManagementStart upDefination/Scope/RequirementPlanning &ResourceAllocationReviewReportingCompletion&AssessmentsTrack & ControlCloseRisk & Issue Management Communication Manegement
19Textile Value Chain | April - June 2013Architectural drawings include plans, sections, elevation,doors & window schedule for each building and necessarydetails for implementation. Structural design and detaileddrawings includes static calculations of reinforced concreteor steel construction for buildings, preparation of structuralGA drawings, preparation of RCC designing and drawings.Utility systems need to be effectively designed to arrive at anappropriate system, detailed design, scheme drawings andlayout drawings. Following is the sequence of activities to befollowed for Project Management :Some of the major reasons for project failures or delay inexecution are inadequate project planning, poor schedulingof projects leading to delays in implementation, misallocationof funds, lack of accountability and transparency, Lack ofdefined, clear, or concise requirements, bureaucracy indecision-making, weak monitoring systems, lack of teamwork etc.These reasons can be overcome by improved projectmanagement that would resolve most of the issues faced bythe project investor in implementation of the project.Need of Improved Project Management: Betterproject management leads to better predictability leading tocommitments that can be met. Lower cost can be achievedthrough reduced rework, better resource management andbetter planning. Quality is improved through proper qualityplanning and control. Project management aids in bettervisibility into project health and state leading to timelyintervention and also helps in better handling of risksreducing the chances of failure/delay. All this put togetherleads to higher project investor satisfaction and self andorganization improvement. This can be achieved byappointing a proficient project management team within theorganization or a professional project managementconsultant outside the organization.Importance of Project Management Consultant: Aproject management consultant has practical experience ofsetting up various projects and complete knowledge of theproject execution along with the intricacies involved whileimplementing a project. The consultant is cognizant of thesystematic process for managing a project and is able toanswer crucial queries like the goal of the project, the needfor the project, the beneficiaries of the project, probableobstacles in the project execution etc. With effectivecommunication and good interpersonal skills, a projectmanagement consultant can efficiently co-ordinate betweenvarious vendors and the project investor delivering theproject within the prescribed time schedule and withoptimum budget.Implementing a project within prescribed schedule, withinsignificant deviations from budget and maintainingappropriate quality enable the project investor in savingaround 5-10% of the project cost.Summary: To summarize, project planning is the key forexecuting any project within cost estimates, timely executionand avoiding repetitive work and delays. The precisionneeds to be taken while planning, designing andimplementing any project. As there are various independentfactors involved in project management, a right andomniscient consulting firm having relevant team withknowledge of project execution should be appointed whichcan assist in giving most favourable end-to-end solutions forany project.The work needs to be closely supervised to ensuretimely completion as well as to ensure quality. Schedule ofwork for each contract should be monitored. Adequateresource should be deployed at site. Monthly progressreport should be prepared covering costs, critical decisionsand progress achieved by collecting site reports for material,labour, work progress. The list of drawings issued and diaryof important events should be maintained.3) Construction Management: Constructionmanagement revolves around the objectives of resourceplanning, micro scheduling & orientation, site supervision,risk assessment and management, safety & securitymeasures, material control, quality control, cost control andsuccessful implementation. Following are the activities to befollowed for Construction Management:REALITYBITESMajor Reasons for Project Failures/Delay: Project, ifnot planned properly, can fail or get delayed indefinitely.Testing of soil& ConductingtoppgraphicalSurveyFinalization ofbuildingSpecificationsCostEstimation& ValueEngineeringPreparationoftenderdrawingsPreparationoftendersFloating &evaluationof tendersIssuingofwork orderFinalizingTendersPreparation ofgood forconstructionDrawingsIssuing ofgood forconstructiondrawingsSite visit &coordinationSubmissionof montlyprogressreportPreparationof finalprojectreportPreparationof as-builtdrawingCertificationof RA BillsChecking of site& site conditionAnalysis &monitoring ofmaster scheduleAnalysis ofResourcesDay to day siteSupervisionChecking ofquality ofmaterialWorkmanshipCoordinationat siteImplementationof safety practicesChecking of &verification ofmeasurements ofcontractor billsPreparationof finalreport
20 Textile Value Chain | April - June 2013REALITYBITES Interview - Sel GroupManufacturing Co. Ltd.TVC: Which markets does SEL group supply?NG: The value added products of the Company i.e. knittedgarments and terry towels are 100% exports, while the yarnsales constitute of about 30% of exports. SEL exports toabout 80 countries including entire Latin America, MiddleEast, Europe, USA and some African & Asian Countries.TVC: What is the current market size and share of SEL?NG: Textile is a very vast field and includes hosiery, apparels,home textiles, cottons, silks woollens, hand-crafted textiles,jute & coir, technical textiles, synthetics, etc. The total Indiantextile market would be around 90 billion USD out of whichabout 60 billion USD is for domestic consumption while thebalance is exports. Similarly, the global market for textileswould be around 650 billion USD.SEL is mainly into yarn, fabric and made-ups like knittedgarments and terry towels. At present, the group is not intoretail segment and caters only to industrial consumers andbig retail chains. Considering the overall huge range ofproducts in textiles, the market share of SEL would not bevery big. But the thrust and focus of the group is to be oneof top integrated players of textile market.TVC: Does SEL have any future plans for expansion ordiversification?NG: SEL has been in expansion mode since its inception.Recently, we have set up a spinning project in MadhyaPradesh with installed capacity of about 4.00 lac spindleswhich is the largest spinning capacity under one roof in India.We have expanded the facilities in MP by adding anotherSEL is a leading vertically integrated textileconglomerate operating in various textile sub-segments. It has facilities right from spinning & knitting,processing of yarns and fabric, to the value added productsviz. terry towels and ready-made garments. SELManufacturing Company Limited has been ranked as the10th largest in analysis of the Europes top 100 Yarn & ThreadSuppliers.SEL is driven by the vision of building a sustainable,profitable, growth oriented and socially responsiblecorporate through strong and effective systems, committedteams and satisfied stakeholders. Today SEL group isrecognised as a “System Oriented ManagementSupported” corporate.TVC interviewed the dynamic, insightful andbrilliant Mr. Navneet Gupta, Executive Director &C.F.O of SEL Group…TVC: SEL presently manufactures an entire range oftextile products from yarn, knits, fabrics, readymadegarments and terry Towels. What was the vision thatmade you enter this entire sector?NG: The group started as a garment manufacturer with avision to create a niche market for itself with quality products.We believe in creating the best quality garments, procuredfrom the best quality of raw material (i.e. yarn and fabric).Secondly, the size of textile markets is growing rapidlyworldwide. Today both international & domestic buyerswant to deal with people where they can be assured of thesupplies. In case of value added products the supplycontracts are for long terms and only the integrated playerscan be reliable sources for long term supplies as they are self-sufficient when it comes to raw material. Thirdly, theintegration gives the group cost effectiveness. Today, whenyarn is moved from spinning division to knitting/toweldivision or fabric is moved from knitting division togarmenting division, the company saves on packing,transportation, commission etc., which minimizes the risk oflosses in case of price fluctuations.Therefore, reliability of supplies, assurance of quality andcost effectiveness promoted the group to enter theentire value chain. To complement the chain, the group hasalso set up a 22 MW Captive Power Plant which is bio-massbased and uses rice husk as a fuel. Besides givinguninterrupted and quality power supply, the steamgenerated by the plant is used for processing in terry toweldivision.TVC: What is your current Production capacity of each?NG: The Company has been into continuous expansionmode since its inception. The current and upcomingcapacities are summarized below:Category Unit Existing Upcoming TotalRing Spinning Spindles 6,13,872 4,79,616 10,93,488Open-end Spinning Rotors 10,680 2,400 13,080Yarn Processing TPA 9,000 -- 9,000Knitted fabric TPA 43,050 36,000 79,050Fabric Processing TPA 6,900 -- 6,900Terry Towel TPA 21,600 12,600 34,200Denim fabric million metresper annum-- 40 40Denim garments million piecesper annum-- 8 8Ready-madegarmentsmillion piecesper annum20 -- 20Captive PowerGenerationMW 22 -- 22Mr. Navneet GuptaExecutive Director & C.F.O,SEL Manufacturing Co> Ltd.
21Textile Value Chain | April - June 2013REALITYBITES2.50 lac spindles. In addition to that, the group is also settingup an integrated textile project in Punjab which would haveabout 2.00 lac spindles and an annual capacity tomanufacture 40 million meters of denim fabric and 8 millionpieces of denim garments. Besides that, the knitting andgarmenting capacities of SEL keeps on adding up. Also, SELis constantly on the look out for acquisition opportunitieswherein we have had about 6 acquisitions in the past 3years, which have added to the capacities of the Company.TVC: What is the general approach followed by yourcompany while putting up a project?NG: Raw material proximity is one of the factors that arestudied while conceiving a project. Land availability and landprices also play an important role in deciding the project. Ournew MP spinning project, is centrally located and in a cottongrowing belt. It is also close to the ports and land is availableat reasonable prices. Our spinning project in Dist. Muktsar,Punjab was again set-up because it is a cotton belt and Govt.of Punjab has a special thrust for development of that regionas a textile hub.TVC: For execution of projects, does SEL take assistancefrom outside consultants or agencies?NG: Over a period of time the Company has developed apool of professionals who take care of the project execution.The team includes people who are experienced in theirrespective fields like civil construction, engineering,government approvals etc. Besides, there are also fresh faceswhich give additional energy to the team. The team iscapable of handling big size projects and implemented thespinning project in MP in the most efficient and timelymanner. However, in case a need arises, the group is notaverse in taking assistance from outside consultants.TVC: What are the major infrastructural obstacles?NG: Power is a major issue. Power consists of about 18%to 20% of the total manufacturing cost. Availability of powerand also the quality are the areas where we have to reallylook into. Industries require uninterrupted power supply ataffordable prices to be really competitive at internationallevel. Apart from this, land acquisition is another area ofconcern.We need to have a clear policy on land acquisitions.TVC: Do you face obstacles while taking loan fromfinancial institutions? Is it easy to get Finance from them?NG: Textile sector may not be a priority area for thelending institutions. One of the reasons for the same canbe the cyclical nature of some of the products and lower levelof profit margins. However, the textile industry has a trackrecord of more than a century. Further, with the growinglevels of integration and increasing size of the units the riskfactors are being taken care of. As the manufacturingcapacities grow in size and the industry moves towardsmore and more of integration, the shock absorbingcapacities are also increasing. Last one year has been verygood for textile industry and same is likely to continue for atleast next 4-5 years. With this the confidence level of thebanks is also increasing. Luckily, with continuous profit recordand meeting the financial obligations on time, we have neverfaced any kind of obstacles in getting finance from the banks.TVC: Is SEL planning investmentsoutside India?NG: With increasing purchasing power and youngpopulation, the Indian domestic textile market is growing at arapid pace. Further, many manufacturing facilities abroad arebeing shut down due to high labour and manufacturing costs,environmental issues, etc. About 60% of the globalproduction base is in Asian countries. Today everyone wantsto setup base in India. As such, at present the group isconcentrating on building capacities in India.TVC: What are the major difficulties SEL faces whiledealing with Govt.?NG: complexity of variousThe major issues are withapprovals required for setting up and running the projects.We should have a wheresingle window clearance systemon a single application all the necessary approvals aregranted. This would save plenty of time & effort which can berightly used for setting up of the project.TVC: How would you like the Govt. to assist you toboost the market of your products?NG: The Indian Govt. has promoted a number of exportpromotion policies for the Textile sector. It has also allowed100% FDI in textiles under the automatic route. Due torecent Govt. policies, the Indian textiles industry is in astronger position than it was in the last six decades. Theindustry which was growing at 3-4% has nowaccelerated to an annual growth rate of 8-9% in valueterms. Additionally, initiatives like TUFS, SITPs and ISDSsare helping to promote the growth of textiles industry inIndia. Apart from this, some State Governments like Gujarat,M.P. & Maharashtra have also given interest subsidy & otherbenefits for setting up of projects. These measures go a longway in reducing the operational costs and making the Indiantextiles industry more competitive in global markets. Theonly thing required is stability and certainty of policies.TUFS blackout period had discouraged the industry andcreated very negative impact in the minds of entrepreneursdue to uncertainty on Govt. regulations. Decisions shouldbe taken and policies should be framed in the interest ofthe Country and not in the interest of various lobbies likeginners, spinners, weavers, garmenters, etc.“ There are childrens who are working in textilebusiness in asia who would be prostitute on thestreets if they did not have those jobs ”Lawrence Summers
Mr. Vitthal JadhavDirector,Pratibha Constructions
ADVT. 20- 50 % Faster Projects 200+ Organizations worldwide includingTrident, L&T, Nakoda, Siemens, TATA STEEL Boeing and ABB $3.5 Billion impact on Cash and profits.“WE WERE ABLE TO COMPLETE A YARN PLANTCOMMISSIONING IN 14 MONTHS COMPARED TO21 MONTHS DONE PREVIOSLY”Mr. Rajinder Gupta,Managing Director, Trident GroupOnly 3%of infrasturcture projects inIndia finished on time and within budget.Economics DepartmentDelhi Board of Economics
If there is one company in India in the space oftextile engineering that can claim to be a singlewindow solution provider across the textile valuechain, it is only A.T.E.!home textiles, synthetics, carpets, a complete range inprocessing, lab equipment, utilities which include ETPs (fromits own group company), and air engineering, comprisinghumidification and also comfort conditioning (from its owngroup company). It also created separate divisions foraccessories and retrofits to drive this business with focus topromote the use of genuine spares, accessories and retrofitsto help customers to optimize their machine performanceand to conserve resources. ATEEPL is also viewed as aconsulting resource by its customers, in view of its deeplyembedded knowledge in textile processes.Certified under ISO 9001:2008 for its best qualitypractices, the companys 300+ team includes around 200professionals for sales, marketing and services, out of whichrdover 2/3 are dedicated to its textile engineering businessalone. The company has eleven branches all across India(located in Ahmedabad, Bengaluru, Chennai, Coimbatore,Chandigarh, Hyderabad, Kolkata, Mumbai, New Delhi,Pune and Surat) and also has residential representatives atkey textile centres like Tirupur, Nagpur, etc.Passion, Commitment and ExcellenceFrom a humble beginning over 7 decades ago, A.T.E. hasgrown organically and inorganically-occupying a centre stagein the Indian textile industry, while firmly establishing itself inother areas of business such as clean technology, print andpacking solutions and machine-to-machine solutions. A.T.E.group now consists of 9 companies, which includemanufacturing units, a project execution company, and anindustrial sale, distribution and service company with anationwide network as well as subsidiary in Dhaka,Bangladesh.A.T.E. is a leader in textile engineering. Its manufacturingunits in the textile engineering field include its own unit forhigh precision spinning machinery components, under theMr. Anuj BhagwatiManaging DirectorA.T.E. GroupMr. G. V. ArasDirectorTextile Engineering GroupHere is a quick overview of ATEEPLs textileengineering businesses:Mr. Laxmikant RathiBusiness HeadSpinning Accessories Div.Spinning machinery andaccessories: ATEEPL has twoseparate divisions to handle thebusiness of spinning machineryand accessories. ATEEPLcommands a significant presencein the Indian spinning industryrepresenting global Germanmajors:Truetzschler, ZinserTextile Systems (ZTS),Oerlikon
28 Textile Value Chain | April - June 2013CORPORATEPROFILE portfolio includes the high precision TeraSpin spinningmachinery components such as spindles and inserts, toparms, etc. (manufactured by A.T.E. based on SKFtechnology), Truetzschler card clothing, original spares forvarious spinning machinery, Inspiron flyers, Inarco cots andaprons etc. The portfolio also includes slub, multi-twist,multi-count, core spun devices from SKAAT, which help invalue addition in spinning yarn and MAG textile testingequipment for accurate testing of fibre to garments. ATEEPLalso represents Bajaj Steel, the largest ginning machinerymanufacturer in the world, for the complete range of ginningand bailing machines.industry and its name is synonymous with warp knitting.Lace, tricot and raschel are the main variants of warp knittingmachines.Karl Mayer has sold over 200 tricot knitting and specialapplication warp knitting machines for technical textiles suchas home textiles, automotive textiles, sports textiles,outerwear, shoe fabrics, agro textiles, geo-composites, flexbanner, coating substrates, geo textiles and medical textiles.Notable customers in this line of business are, BMD, GinzaIndustries, Haria Enterprises, Techfab India, Garware WallRopes and others.Warp Preparation: Since 2008 Karl Mayer has combined thesynergies of Karl Mayer, Benninger, Sucker and Griffin tooffer one stop solutions for warp preparation for textiles,technical textiles and indigo denims. Karl Mayer enjoys asignificant market share with a population of more than 850installations across India with almost all leading mills andcorporate weaving houses.ATEEPL has promoted Karl Mayer strongly with majorinstallations at Alok, Bombay Rayon and Fashion, Welspun,Mandhana, Arvind, Raymond, Sri Shanmugavel, VT Mills,Loyal Textiles, Himatsingka, Premier, NSL, Nahar,Vardhman, etc.geotextiles, filtrations and roofings; Enka Tecnica (Germany)for spinnerets and jet strips; Wenzhou Seek BenefitMachinery (China) for spun bond and SMS lines; Luwa for airhandling systems; Ramisch Guarneri (Italy) for calenderingsystems; Mahlo (Germany) for GSM monitoring andmoisture measurement systems; Fongs for bleachingvessels; Monforts (Germany) for coating systems andZeller+Gmelin, (Germany)for warp and weft knitting oils.A.T.E. has also recently tied-up with Tayu Machine(Xiamen, China), which provides a full range of machines tosuit every need, in the circular knitting sector. The rangeencompasses single jersey and double jersey machines. Tayualso manufactures alloy steel cylinders which add to themetallurgical strength, thus assisting in effective dissipation ofheat between the knitting elements.Carpet and Synthetic Machinery: The carpet business hastremendous potential, driven by a rapidly growing demandfor interior décor both by business establishments as well ashouseholds. With a low per capita consumption of carpetsin India, as well as a rapid growth rate for consumption,carpet is by far, one of the most unexplored products inmanufactured textile applications in India. Backed by itsdomain knowledge in textile applications, A.T.E. has recentlyentered into the carpet machinery business, to help theIndian carpet industry to tap the growing market for carpets.ATEEPL has tied-up with a number of leadingmanufacturers of carpet machinery and equipment aroundthe world, such as: Zimmer, Austria (carpet printingChromoJET and back-coating lines), Cobble Blackburn,U.K. (machine-tufting), Crabtree, U.K. (carpet looms,belting looms for producing specialized industrial fabrics forconveying), EFAB GmbH for robo-tufting, Ornek Makine,Turkey (heat setting) and Yamuna, India (for indigenous backcoating lines).ATEEPL has also understood that it needs to take astrong position in the synthetic textile sector too whichshows very good promise of sustainability and growth. Ofcourse, it is already into the warp knitting and beampreparation sector with Karl Mayer equipment, but the needwas felt to enter into the highly competitive as well as highlycapital intensive sectors of POY/FDY lines, PET/PP staplefibre lines, Continuous Polymerisation (CP) lines,monofilament lines and tape manufacturing lines, to name afew. ATEEPL has a very strong line-up of principals in thissector as well, comprising of world leaders such asTruetzschler, CTMTC, Huitong and others.Mr Sunil BhatnagarBusiness Head - Spinning& Fabric Forming Div.Fabric Forming : ATEEPLsFabric Forming Divisionrepresents Karl Mayer, Germany,for warp knitting and weavingpreparation equipment.Warp Knitting: ATEEPL has beenrepresenting Karl Mayer,Germany, for over 5 decades.Karl Mayer has a very highreputation in the Indian textileKnitting & Non Wovens:ATEEPL has been present in thenon-woven segment since the1990s and represents in India arich technology basket with alarge number of world classmanufacturers. ATEEPLsprincipals in the technical textilessegment include TruetzschlerNon-wovens (Germany) forspun lace, thermo chemicalProcessing Machinery andAccessories: ATEEPL providesa most-complete technology-package for textile processing forboth woven and knits from globalleaders. Principals handled byATEEPL in the processingsegment include Monforts forstenters for wovens, knits &technical textiles, CDR (E Controltechnology)& MXL ranges; FongsMr. Avinash NaikBusiness Head ProcessingAccessories & CustomerService GroupMr. Vikas SharanBusiness Head - CircularKnitting, Non-wovens,Synthetics & Carpets Div.
for package & soft flow dyeing machines; Fongs Europe(Goller) for continuous bleaching and mercerizing ranges forwovens and knits; Fongs Europe (THEN) for air flow dyeingmachines; Osthoff-Senge of Germany for singeing machinefor wovens & knit fabrics; Mahlo for weft straighteners forwovens, knits & denim fabrics with modular process controlsystems; Stalam of Italy for RF dryers for loose stock, hanks,tops & hydro extractor for yarn packages; EliarElektromekanik of Turkey for weighing & dispensing systems;Corino of Italy for balloon padders & wet slit opener; A.T.E.Envirotech for water & waste water treatment plants andcomplete packages for zero liquid discharge system fortextile effluents, Ramisch Guarneri of Italy for calendars fortextiles and technical textiles; Montimac of Italy for greypreparation lines; Salvade of Italy for loopsteamers andZimmer of Austria for digital printing machines; and nowL A C O M f o r c o a t i n g a n d l a m i n a t i o n .As one could see, this line-up clearly reflects A.T.E.sfocus on not only the main-stream textile process lines, butspecial value adding process as well as post-process activitiesincluding crucial waste disposal and pollution control areas.ATEEPL has a dedicated set-up for customer supportwith 30+ engineers/technologists to provide post-salesservices for a host of state-of-the art textile processingmachines of its local and foreign principals. This team offers abouquet of services such as erection and commissioning,trouble shooting, annual service contracts, performanceoptimization, technological assistance, spare parts handling &training. With a highly competent and experienced serviceteam, A.T.E. is committed to ensure uninterruptedproductivity and quality, giving its customers a sustainablecompetitive advantage. Services of A.T.E. engineers aresought even by international textile machinery companiesfor various kinds of services for their installations supplied allaround the world, which is an eloquent testimony to thec o m p e t e n c y o f A . T. E . s s e r v i c e t e a m .As in the case of spinning, ATEEPL has also created aseparate business division to promote the business forspares, accessories and retrofits for processing machinery.Besides promoting the use of genuine spares for optimizingmachine performance, the accessories and retrofits broughtby this division is designed to save cost, improve productivityand improve quality at substantially low cost of investmentsand with fastest ROI.Garments Machinery:ATEEPL has forayed intogarment machinery two yearsback and is fast making itsmark in the garment makingindustry with the latest eco-friendly automation solutionsf r o m r e n o w n e dmanufacturers around theworld. ATEEPLs offering willcertainly save man-hours,reduce energy consumptionMr. Kanhaiya PrasadBusiness Head - Garments& Home Textiles Div.Mr. S RajendranBusiness HeadProcessing Div.frame trolleys, box trolleys, batch rotation station andhydraulic spindle batchers); Valence (antistatic units); MAGFORM IV
As per the Table no. 2 & the graphs, spun dyed Viscoseyarn is showing results comparable to the Uster 25% normsfor 30s normal Viscose yarn. All the testing done atcontrolled lab conditions of 65% RH with 27±2°ctemperature.Fabric Quality Reports –Below mentioned table shows the benefits comparison ofspun dyed viscose fabrics over the piece dyed fabrics. As theSpun dyed are manufactured by injecting pigments at thefibre spinning stage, the fastness ratings for the Spun dyedfabrics are excellent as compared to the piece dyed fabrics.Colour fading Values –FIBREFOCUSTable no. 3TestFastness To WashChange in shadeStaining on CottonFastness to RubbingDryWet5554-5443-43IS764 -1979IS766 - 1988Spun DyedViscosePiece DyedViscoseTable no. 4OriginalAfter 1 washAfter 3 WashAfter 5 WashAfter 10 Wash5555554-543-43Spun Dyed ViscoseWash Sample Piece Dyed ViscoseTestMethodAs per the above mentioned table, spun dyed Viscose shows no colour fading even after repetitive washings. Value 5 denotesno colour fading & solid appearance where as 1 denotes poor colour fading & fuzzy appearance.Process savings in Spundyed Viscose Knits -171615141312Uster 5% Uster 5%Uster 25%RKM Total IPI/KmUster 25%Uster 50% Uster 50%Spun DyedViscoseSpun DyedViscose100806040200
As per 70% of the customers, yarn fuzziness is a commonproblem. It is more severe in case of cottons as compared toA. Bleeding of Embroidery Yarns:Fig.2 : Comments of Customers on Fuzziness of Yarns
38E. Puckering of Garment at Stitch Joints:2520151050No.ofpeopleResponceNo. ofpeopleRespondedNever Rarely Occasionally OftenFig.4: Comments of Customers on Puckering of Garments at Stitch JointsUsage Cycles Cotton SyntheticWoven% of people given response63.6723.36.676.6713.31026.653.3316.6713.3706.6713.3356.6203.332-35-78 andabove3-516.6726.656.67101023.363.673.32073.36.673.323.366.6766.673063.36.6126.96.36.19916.673.333.366.613.3326.6601023.363.673.316.616.666.676.613.38016.663.67200.5122.522.5342.53411.522.5322.533.5344.5544.551233.5122.5333.544.54.5533.541.522.553.54.5544.553.544.5% of people given response% of people given response % of people given responseGrading GradingGrading GradingWovenKnitted KnittedThe solution adopted by manufacturers for such a problem isto mercerize the yarns which are going to be used for
Weaving – Challenges and Opportunities for the SME sectorIndia has been witnessing rapid modernisation inalmost all fields of technology. This change has touchedlives like never before and continues to do so in more andmore areas of our day to day life. Electronic voting, thepenetration of mobile services are but just two examples.It is but natural that textiles are also swept along in thesweeping changes. Like any other industry textiles has alsosought to embrace the new technologies for better productsat lower prices; starting from fibre manufacturing to spinning ofnatural fibres and finished garments. Today, we have worldclass man-made fibre plants and equally modern and up-to-date natural fibre spinning mills, especially cotton spinning unitsthat have placed India on the world map of quality yarnsuppliers.However, if we take a look at the total textile sector, wenotice that the weaving sector some how still seems to bestruggling. There is lack of adaptation & Upgradation of newtechnologies which our competitors like China have taken toin a big way. It is surprising that in a technology friendly countrylike India, which is known for its technical support to the entireworld, we have not adapted in the other sectors.The reason is not complex to fathom. What has been thestrength and the driving force of the weaving industries growthin India, is now becoming its biggest obstacle to thistechnological absorption; the weaving industry being majorlyin the Small and Medium Sectors. In the past, there has beenexponential growth due to fast and commercial baseddecision-making of the owners with adaptation oftechnologies where they saw the benefits. Yet, paradoxicallythis has also led to retarded growth in the same sector as lackof management skills forces owners to slow down growthplans beyond a certain level that are required in todays worldeconomy. The key difference between India and China isthe volume and scale at which the two operate. Nowonder, China leads and India still struggles to get its expectedmarket share.- Sharad Tandon, CEO, Standon ConsultingFABRICFOCUSMr. Sharad Tandon,CEO, Standon Consulting
46 Textile Value Chain | April - June 2013FASHIONFOCUS Trends and Developments in Apparel and Fashion TechnologyProf. Kalyan RoywithReetipal Singh & Nisha AroraDepartment of Textile Engineering, Punjab Technical Univ.
47Textile Value Chain | April - June 2013colourways, and construction details - are available for reusethe next season and can be shared easily with suppliers forquick replenishment.®Lectra Fashion PLM gives fashion companies completecontrol over operations so that they can continuouslyanticipate and respond to consumer demands down tocolour, size, style, and fit for each distribution channel, whileat the same time making supply-side decisions and reactingquickly and intelligently to external factors, such asfluctuations in the price of raw materials.®Another feature of Lectra PLM is to manage fabric toreduce costs. Embedded automated marker-making toolsenable fast and effective prototyping, costing, andproduction. The material management solution can be usedto optimize markers and increase material efficiency,generating fabric savings of up to 5%.2.3 Laser Cutting in Apparel Production: This highprecision and high quality cutting results into high addedvalue for garment cut by laser. And the high precision one-time cutting can help garment manufacturers save fabric,production time as well as labour cost by great measures.Besides, data for every pattern can be saved in computer forfuture use. The need to draw graphics/sketch, cut and keepcardboard for each size of each style by hand is eliminated.That is why it is so good for made-to-measure garment andto make pattern/sample clothes.FASHIONFOCUS3. Developments in Management : Supply chainmanagement through Quick Response & AgileMarketing: “Managing the Supply Chain to meetConsumer Demand”. Quick Response Managementemphasizes the beneficial effect of reducing internal andexternal lead times. Shorter lead times improve quality,reduce cost and eliminate non-value-added waste within theorganization while simultaneously increasing theorganizations competitiveness and market share by servingcustomers better and faster.Quick response (QR) is widely accepted andimplemented by retailers of department store typemerchandise. QR is also described as a state ofresponsiveness and flexibility in which an organization seeksto provide a highly diverse range of products and servicesto customer/consumer in the exact quantity. Many retailershave found that they can serve customers better byimplementing QR without reducing profits. A QR strategy isreported to result in efficiencies, such as quicker deliveries,faster inventory turns, fewer stock-outs, fewer markdownsand lower inventory investment. Most companies that haveimplemented QR have got positive impacts on their financialand operating data by increasing profits and/or impartingbetter pricing to consumers. The introduction andimplementation of QR are gradually increasing.Implementation of QR strategies provides a lot ofadvantages. It is evident from the previous research that all ofthe below economic benefits and advantages to both theretailers and to the supply chain members have beenobtained because of QR implementation. The benefits ofQR implementation can be tabulated as follows:Table 1: Advantages of QR implementationSuppliers benefits Suppliers benefits Reduction of buyingmistakes Minimization of stockholding Quick tracking ofmerchandise Higher stock turn Improvement of cash flow Increment of customerservice Very higher level of profit Enlarged competitiveadvantages Improvement ofcommunication Improvement of planningsystems Quick access to salesinformation Easy tracking of products Security of getting moreorders Improvement ofmanufacturing systems High volume of production Reduction of stock holding Higher level of sales Good profit margin Getting of competitiveadvantages Enhanced customersatisfaction & loyaltyThe typical disadvantages of implementing QR systems forthe suppliers are: Installing of IT systems increases the cost. Increased retailer demands may erode the margin.4. Fashion Trends and its Developments: The meaning oflatest trends and fashion technology gives an explanation offashion as a sign system of cultural change and ethnicbelonging. New trends development depends on theclimate, culture, weather and the textile materials. There aredifferent fashion trends in different states at different times.Outfits can be made from different types of textiles to suitdifferent occasions and climate. Mostly, traditional Indianpreference is using cottons and silk apparels, although, latelythe fashion trend in India is diverting towards western cultureand people prefer to wear western style outfits.Fashion is a very broad word, fashion never remains thesame and over the years fashion changes periodically andalso repeats with new sensibilities. It is exciting, stylish andvery graceful.Figure 1.Clothing Laser Cutting Machine
48FASHIONFOCUSFigure 2: ColourBlock TrendThe trend that isp o p p i n g o u teverywhere thisseason is colourblock fashion trend.Fun and playfuldresses in strikingcombinations are IN.A mix of hot pink,emerald green,tangerine, lemonyellow, turquoiseand many moreThe spring spirit isembraced in a loudn e o n c o l o u r e ddress. From dressesto shoes, handbagsto hair or nails;everything was goingneon. The key tostay true to trendwas not to wearmany neon pieces atthe same time.Neon colouredshoes, bags,Figure 4: NeonColour TrendFigure 5: MaxiDress TrendFeminine and elegantmaxi dress was thecentre of attention formany. Summery maxidress is an essentialp i e c e o f e v e r ywomans wardrobe.These long flowingdresses were flattering,comfortable and verysmart. There was anarray of styles toSpring/Summer2012 season was allabout floral prints.Floral print trend hasdominated mostrunways and nowfloral jeans trend isone of the seasonsbiggest trends.Figure 3: FloralJeans TrendConclusion: The fast changing scenario apparel productionrequires enormous expertise, both technological andmanagerial, to manage the business. A few developmentsand trends are mentioned in this article to understand thesetransformations. It is expected that this write-up willgenerate further interest in the reader to obtain acomprehensive idea on the subject.Reference:1. www.gprotechnologies.com2. http://www.researchandmarkets.com/reports/664358/3. www.lectra.com4. www.lectra.com/en/fashion_apparel/products5. Barnes, L and Leegreenwood, G, Fast fashioning andsupply chain shaping the research agenda, Journal ofFashion Marketing and Management, Vol. 10, Issue 3, 2006,pp-259The art and work related with the designers is not onlyrestricted with the designing of clothes but also broadens tofashion accessories like shoes, bags, jewellery and manymore. The interest in fashion apparel is on endless rise;accordingly the concerned opportunities and competitionexists. A few of the current trends for Spring Summercollection are highlighted here to elucidate these facts.Spring/Summer fashion is all about bright colours and boldprints. So, its right time to ditch the dark and heavy winterclothes and go for something colourful and trendy, must-have pieces of the season. This season, women fashiontrends feature dazzling prints, eye-popping colours, andoverall, new styles.vibrant shades are seen on red carpet and street. Colourblocking effects on clothes are complimented by accessorieslike shoes and handbags for a fun-edgy look.jewellery etc adds to fresh and fun look.choose from. These dresses were worn with flats andchunkyjewellery pieces for a gorgeous look.Textile Value Chain | April - June 2013“ Be sure what you want and be sure about yourself.Fashion is not just beauty, its about good attitude. Youhave to believe in yourself and be strong.”Adriana Lima