Jan March 2014

January- March 2014 2 4 68
Advt.
JANUARY-MARCH-2014TEXTILEVALUECHAINVOLUME-2ISSUE-4www.textilevaluechain.com

 TEXTILE VALUE CHAIN Magazine issues
 Latest News
 Quality Articles
 Meaningful Interviews
 Reports / Forecast
 Updated Events
 Directory
 Many more...
www.textilevaluechain.com
For Brand / Company Promotion :
Write : sales@textilevaluechain.com
Call : +91-22-21026386 / +91-9769442239
Register & Read...
Advt.

“ KEY” brand is the weaver’s ﬁrst choice for the healds and drop pins for high speed &
Quality weaving
Every Products is designed & made speciﬁc to our customers need for the highest weaving
speed avialble to day is pojectile or air Jet or Repier or water jet
Plot no. 65 Block No. 65, At & Po. Mota Borasara, Tal. Mangrol, Dist Surat ( Gujarat) India
Ph. : + 91-2621-234365 / 712, E-mail: , pratik@himson.in,karan@keytex.in
Website : www.keytex.in
Technology from,
THE NATIONAL WIRE HEALD WORKS PVT. LTD.
ADVT.

New Year Greetings to all subscribers, Advertisers, well-wishers, and supporters of Textile Value Chain. May the New Year fulfil your all
plans of growth and development!
We are glad to present this issue of TVC, the cover story of which is confined to the realm of industrial finance.
Finance is the lifeline of any industry. It is said that banks always support successful companies and companies getting adequate and
timely finance on favorable terms always succeed.The reverse of this is, unless adequate banking facilities are available companies
cannot succeed and because companies are unsuccessful banks do not open their cash vaults. This should not become the chicken and
egg problem. The vicious circle must be broken.
Since the scheme of rejuvenation has not engulfed the entire industry, and as a result a large number of mills are still struggling to find
their feet. Besides, tremendous volatility in cotton prices and also in man-made fibre prices in the recent period has weakened the
financial muscles of the industry. All this reflects in the long queue for availment of assistance under the Corporate Debt Restructuring
Scheme (CDR). The restructured textile accounts of ten banks, accounting for 57% of the total restructured assets for all the banks
covered by the RBI study, stood at Rs 190 billion as on 30th September, 2013 accounting for nearly 10 Per cent of the total restructured
accounts.
The power loom sector which accounts for over 60% of the aggregate cloth production in the country is still lagging behind in
technology upgradation, despite the Investment-friendly Technology Upgradation Fund Scheme introduced on 1st April, 1999. The
leaders of the power loom industry grieve their inability to offer collateral security to the investing banks. The Ministry of Textiles and
the Textile Commissioner should consider this issue on priority. If this problem is not attacked on war footing, the backlog of
modernization in the power loom sector will keep on swelling.
To lend competitive edge to the industry in the international market, the rupee export credit should be made available at 7 Per cent.
The interest rate for the working capital for domestic operations should also be reduced substantially.
Being the premiere industry, accounting for a chunk of foreign exchange earnings and the largest provider of industrial jobs, the textile
industry, with the proverbial low-profit profile, deserves the priority-sector status, the lending target for which should be jacked up
from 40% to 50 %.
At the same time, the banking sector will be able to multiply its resources for lending purposes, if a recent suggestion of a RBI panel,
under the chairmanship of Shri Nachiket Mor, to keep the target of enlarging the
banking landscape to cover every resident Indian above 18 years of age, with a full-
service account, and every account holder having an electronic payment access
point within 15 minutes of the walk is accepted.
Let us hope for the best.
Priority-Sector Status needed for Textile Industry

State-of-the-art technologies
Advt.

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. Shailendra Pandey, VP (Head – Sales and Marketing),Indian Rayon
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
9
Government News
10
Economy News
11
Association News
12
Corporate News
13
International News
14, 15, 16
SKILL DEVELOPMENT
Lesson from China on HR
English Communication –
Employability Skill
COVER STORY : FINANCE,
Lifeline of Industry.
19
Bank Finance in Textile industry
By Mr. Avinash Mayekar
20
Voice of Powerloom Sector
Interview with President Bhiwandi
Powerloom Federation Ltd.
21
Interviews from Banks
IOB & OBC
22
Industry Views
Mr. Nilay Rathi & Mr. Surendra Shetty
25 to 29
Cost competitiveness in Textiles and
Clothing Sector
By Prof. M.D. Teli
29
Rise in Restructured Assets
By Care Rating Agency
30
Technical Article: Fragrance Finishing
of Textiles – A Review
32
Report : TAI – All India Textile
Conference, Surat
33 to 36
Technical Article: Biomimetics in
Textiles
39
Launch of Enka Brand by Aditya Birla
Nuvo Ltd.
41
Technical Article: Composite Textile
application in Aerospace Technology
46
Fashion Forecast : Print Forecast
49
Market Research Article : Teens
affected by Fashion
POST SHOW REPORT
54
Indiatex 2013, Vapi
55
Fibre To Fashion 2013, Surat
56
Techtexil 2013, Mumbai
57
IRANTEX & Seminar by MANTRA
58
Company Profile : SGS Innovations &
Digital Consulting
59
Fabric Report
61
National Household Survey findings,
by Textile Committee
63
Tradeshow Details
EDITORIAL TEAM
Editorial Advisor
Shri V.Y. Tamhane
Graphic Designer
Interactive Technology
Editorial Support & Expert Committee
Mrs. Nimmi Kothari, Microbiologist
Editor & Publisher
Ms. Jigna Shah
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
Mr. N.D. Mhatre, Dy. Director, ITAMMA
JAN- MARCH 2014 ISSUE
Chief – In – Editor
Ms. Rajul J. Shah
Advertising & Sales
Md. Tanweer

Advt.
BHILWARA
BHOPAL
BELGAUM
KOLHAPUR
ICHALKARANJI
SOLAPUR
PUNENAVI MUMBAI
MUMBAI BHIWANDI
NASHIKTARAPUR
SILVASSA
VAPI
MALEGAON
SURAT
BARODA INDORE
BURHANPUR
AHMEDABAD
January 22-24, 2014
Bhiwandi, India
INTERNATIONAL
TEXTILE MACHINERY
& ACCESSORIES
EXHIBITION
ITMACH
See Meet Learnthe latest textile machinery the industry experts the trends and opportunities.
S S amir
THE
BEST AIR ENGINEERING (INDIA) PVT. LTD.
PRETEX
KAESERC O M P R E S S O R S
Exhibitors Supporting
Partners:
Media Partners:
SPACE BOOKING ENQUIRY VISITOR REGISTRATION
Arvind Semlani: Cell: +91-9833977743,
Farid K S: Cell: +91-9869185102
Tel. +91 (22) 22017013/61/62/63, E-mail: info@itmach.com,
Contact E-mail: services@itmach.com | Website: www.ITMACH.com
Travel and Accommodation: Mr. Chandrashekar Madiwalar,
Tel: 022 66091545 Cell: 09769282557
Email: chandrashekar.madiwalar@in.thomascook.com
PLAN
YOUR
VISIT

KUMAR SILK MILLS
384 / A, Dabholkar Wadi, Ground oor, Shop no. 2,
Kalbadevi Road, Mumbai - 400002
Tel : 022-32227900
Email : welworth.khadi@gmail.com
Contact Person : Mr. Atul Jain - 9324169231 / Hitesh Shah - 7498207498

Status Quo in the Definition Of
Handloom Under Handloom
Reservation Act
The apprehension of a change in
definition of ‘handloom’ has triggered
speculation and insecurity amongst a
section of weavers and handloom
activities and given a mistaken impression
on handloom activists that Government
has taken a decision to allow the
introduction of automatic machines to
replace handlooms and that the
Government intends to change the
definition of ‘handlooms to include such
mechanized looms’.
In this regard, it is clarified that no change
is contemplated by Ministry of Textiles, in
definition of ‘handloom’, which has been
defined as “any loom other than
powerloom”under the Handlooms
(Reservation of Articles for Production)
Act, 1985.
Handloom weaving constitutes one of
the richest and most vibrant aspects of the
Indian cultural heritage. As per handloom
census 2009-10, the handloom sector
provides employment to 43.3 lakh
weavers and allied workers whereas the
number was 65 lakh in 1995-96. The
reduction in number of handloom
weavers has been a cause of concern for
Government. The sector is facing
constraints such as lack of technological
upgradation, inadequate availability of
inputs, non-availability of adequate and
timely credit, lack of contemporary
designs etc. Further a trend is noticed that
the younger generation is not willing to
continue with this profession or be
attracted to it owing to low generation of
income and hard labour required to
operate looms whereas easier earning
options are available.
The Government has been considering
various ways to arrest this decline and has
b e e n i m p l e m e n t i n g v a r i o u s
developmental and welfare schemes to
sustain the handloom sector. To improve
the productivity and reduce the manual
labour on loom, the Advisory Committee
on Handloom Reservation Act, in its
meeting held on August 10, 2012 had
recommended the modifications in
definition of handloom as“handloom
means any loom, other than powerloom;
and includes any hybrid loom on which at
least one process for weaving requires
manual intervention or human energy for
production’.
Various aspects pertaining to amendment
of the definition and other incidental
issues has recently been studied in greater
detail by a sub-committee of the Advisory
Committee which was constituted for the
purpose. The committee of officials
comprising of representatives from
various states, Textile Committee, Textile
Commissioner, Powerloom division and
Development Commissioner for
handlooms have studied the matter in
depth and submitted a report.
The Sub-Committee while visiting
different parts of the country examined
various issues including different types of
looms being operated by handloom
weavers in handloom clusters across the
c o u n t r y , t h e e x t e n t o f
modernization/mechanization being
carried out in different parts of the
country, scope for further improvement
/upgradation of looms mechanically
without use of power to reduce manual
labour and to improve productivity
without compromising the quality of
handloom fabric and the possibility of
replicating such interventions in other
handloom clusters/pockets.
The Sub-Committee submitted its
report on 29th October, 2013 to
Government. The Sub-Committee has
recommended that in the process of
weaving, the weaver does not use power
and hence definition of handloom need
not be changed and it should remain in
the purest form.The Ministry of Textiles
has accepted the report of the sub-
committee and no amendment in the
Handloom Reservation Actto change the
definition of handloom is contemplated.
Petrapole, Benapole Land Customs
Stations to be Operational Seven Days
A Week , Major Relief to Exporters
from Congestion on Bangladesh
Border
Petrapole and Benapole (Bangladesh
side) Land Customs Stations will now be
made operational 7 days a week from 1st
January, 2014. This move came in the
wake of Union Minister of Textiles Dr. K.S.
Rao writing to Union Finance Minister
Shri P.Chidambaram about the
congestion at Bangladesh border. Various
exporters had raised this issue with the
Textiles Minister in a recent meeting. “The
move will ease off the way for trade
between the two countries and it will
especially benefit the textiles sectors of
both the countries,” said Dr. Rao.
The Finance Ministry has taken measures
to facilitate the trade at Petrapole
including extended working hours for the
functioning of Customs at Petrapole and
aligning the weekly holiday with
Bangladesh so as to provide more
working days to the trade. The
movement of trucks carrying export
cargo is allowed up to the LCS of the
importing country for discharge of cargo.
Regular meetings are being held between
the jurisdictional Commissioners of
Customs of India and Bangladesh as well
as meetings with trade at the border to
address issues of concern to the trade.
These steps are expected to ease out the
traffic congestion to a large extent.
The delay in movement of export cargo
at Petrapole is primarily due to
infrastructural inadequacies at LCS,
Petrapole emerging out of road
conditions, traffic congestion and lack of
authorized parking facilities. These issues
are being taken up with the district
administration. To address these further,
the Land Ports Authority of India is
building an Integrated Check Post (ICP)
incorporating state of the art
infrastructural facilities at Petrapole, which
is expected to be ready by operation in
2014 which will further reduce
congestion and ensure smooth flow of
goods being exported from India to
Bangladesh.
GOVERNMENT NEWS
For Updated & Complete News Visit , www.textilevaluechain.com News Section
GOVERNMENT NEWS
9 TEXTILE VALUE CHAIN | Jan-March 2014|www.textilevaluechain.com
NEWS
Source : Ministry of Textile

Implementation of Yarn Supply Scheme
(YSS) during 12th Plan
The Cabinet Committee on Economic
Affairs has approved the continuation of
the Mill Gate Price Scheme (MGPS) along
with 10 percent subsidy component with
modifications. The scheme is now
renamed as the Yarn Supply Scheme
(YSS).
The plan outlay for YSS during the 12th
Plan will be Rs.443 crore.
The scheme will cover the weavers who
are under privileged as also vulnerable
groups, by providing them subsidized
yarn so that they can compete with the
powerloom and mill sector. The target
for the 12th Plan will be to supply
3506lakh kg yarn worth Rs.4364 crore.
The target of providing service to
beneficiaries under YSS has been
accordingly fixed to serve all 23 lakh
handloom units.
The following modifications have been
carried out in the existing scheme in the
12th Plan:
1.At present, 10 percent subsidy on mill
gate price is payable to cotton yarn and
domestic silk with quantity restrictions.
Under the new scheme restriction for
cotton yarn will be as follows:
(I) up to and including 40s -
30 kg per loom/month
(ii) above 40s - 10 kg per
loom/month.
For domestic silk, quantity restriction will
continue to be four kg per loom/month.
2. Along with hank yarn and domestic silk,
10 percent subsidy will also be applicable
to wool for individual weavers and
weavers cooperative societies only, with
t h e f o l l o w i n g q u a n t i t y
limitation/maximum limit:
3. To increase the coverage of primary
weavers societies and individual weavers
and also to introduce cash sale of yarn
especially to small weavers instead of
payment of advance to precede indenting
and supply of yarn with a gap of about 15
to 45 days, National Handloom
Development Corporation (NHDC)
now proposes to open distribution
centres/warehouses in various parts of the
country. To begin with 10 such distribution
centres are to be set up.
4. Service charges to NHDC are
proposed to be enhanced by 0.5 percent
in all the States.
Background:
The Government of India has been
implementing MGPS since 1992 for
making yarn available to handloom
weavers at mill gate price by reimbursing
transportation charges to depot operating
agencies, which are primary weavers
cooperative societies, apex societies and
other handloom organisations.
DGFT and Enforcement Directorate
Sign MoU on Foreign Exchange Data
Sharing
The Enforcement Directorate today
signed a Memorandum of Understanding
(MoU) with Director General of Foreign
Trade (DGFT) for sharing of foreign
exchange realization data. This data is also
known as eBRC (Electronic Bank
Realization Certificate) data.
The Union Minister of Commerce and
Industry Shri Anand Sharma presided over
the ceremony in which Dr. Rajan Katoch,
Director, Enforcement, Ministry of
Finance and Director General of Foreign
Trade Dr. Anup K Pujari signed the MoU
for sharing of foreign exchange realization
data. Finance Secretary Shri Sumit Bose,
Commerce Secretary Shri S R Rao and
other senior officials were present during
the event.
Speaking on the occasion, Shri Sharma
said that data sharing with government
d e p a r t m e n t s w o u l d i n c r e a s e
transparency, reduce the human interface
and improve the ease of doing business in
India. “The eBRC project is a significant
step in this direction and will contribute
considerably in reducing the transaction
cost of our exporters," added Shri
Sharma.
Bank Realization Certificate (BRC) is
required for discharge of export
obligation and claiming of incentives
under Foreign Trade Policy. BRC is also
used by state government departments
for refund of VAT. In addition, this data is
an important economic indicator as it
quantifies transaction level export
earnings.
Earlier, the banks issued physical copy of
BRC to the exporters and no data mining
or analysis was possible. The process for
BRC issuance and subsequent utilization
were largely manual and department
centric. The exporters suffered most as
they had to run to banks and government
departments for claiming benefits.
The eBRC project was launched on June
5, 2012, which made the process secure
and online. It created an integrated
platform for receipt, processing and
subsequent use of all Bank Realization
related information by exporters, banks,
central and state government
departments. It was made mandatory
with effect from August 17, 2012.
e-BRC project enables banks to upload
Foreign Exchange realisation information
relating to merchandise goods exports on
to the DGFT server under a secured
protocol. So far 90 banks operating in
India, including foreign banks and
cooperative banks have uploaded more
than 75 lakh e-BRCs on to the DGFT
server. This initiative has reduced the cost
of transaction for exporters by eliminating
their interface with bank (for issuance of
BRC purposes) and enhanced the
productivity of banks and DGFT. At the
state level, Commercial Tax Departments
of Maharashtra, Delhi, Odisha, Andhra
Pradesh, Haryana and Chhattisgarh have
signed MoU with DGFT for receiving e-
BRC data for VAT refund purposes. Many
other states are in the process of signing
MOUs. DGFT is in talks with RBI for
expanding the coverage of this data for
setting up an efficient mechanism for
foreign exchange monitoring.
TEXTILE VALUE CHAIN | Jan-March 2014|www.textilevaluechain.com
NEWS
ECONOMY NEWS
10
Source : Ministry of commerce

TEXPROCIL Welcomes DGFT’s move
to Simplify
The DGFT has issued Notication No.63
dated 3rd January 2014 dispensing with
the requirements of submission of hard
copies of the documents even when
applications for issuance of Registration
Certicate for items like cotton and
cotton yarn were being accepted on line.
Shri Manikam Ramaswami, Chairman,
Texprocil has welcomed the move of the
DGFT to simplify the procedures in the
case of commodities like cotton and
cotton yarn which are under a registration
process. He stated that most of the
procedures have been simplied by the
DGFT’s ofce and this was the only
pending requirement which will give a
huge relief to the exporters by saving their
time, money and energy and enable them
to concentrate on market development
programmes.
With the online registration of cotton and
cotton yarn being operationalized fully
the data can also now be published on a
regular basis for both cotton and cotton
yarn registration so that the exporters can
be informed about the extent of the
export of these commodities and take
proper steps to implement their
strategies. With the online system fully in
operation, it should be easy for the
Commerce Ministry to publish such data.
Shri Manikam Ramaswami pointed out
that these procedural simplication will go
a long way in reducing the transaction
costs of exporters and with the necessary
policy support the target set for the textile
sector for the scal year 2013-14 will be
achieved.
VIRENDER UPPAL, TAKES OVER AS
CHAIRMAN of AEPC
ASSOCIATION NEWS
Virender Uppal has been unanimously
elected as Chairman of Apparel Export
Promotion Council, by the Executive
Committee of AEPC, for a term of two
years i.e 2014- 15. It will be his second
tenure as Chairman AEPC. Prior to this he
was Chairman AEPC, during 2002-03
and Senior Vice Chairman, Northern
Region AEPC between 2000-01.
He has been in the Executive
Committee of the AEPC since 1988. He
was Chairman Finance & Budget Sub-
Committee, AEPC during 1999. Uppal
was also the Chairman of the Project
Implementation Committee which
headed the various projects of the
Council especially the current head ofce
of AEPC i.e Apparel House under his
guidance. He also spearheaded the
Garment Export Association as the
President during 1992-93.
Virender Uppal is the Chairman of Richa
Global Export pvt. Ltd. is a leading
garment exporter. Dealing in both woven
and knitted garments exporting mainly to
USA & EU and is also in the business of
exports of leather garments and
accessories.
Richa Global Exports Pvt. Ltd employs
around 8000 peoples and has the
manufacturing capacity of 1.5 million
pieces per month. With his resilient
dynamism and encompassing vision, he
has been instrumental in providing
impetus to the garment exports from the
country.
FAITMA MEET –
An evening to remember
Faitma arranged a special programme on
27th December 2013 to listen to the
speeches of four experts drawn from
diverse elds.
Shri Ramesh Poddar, President,
FAITMA welcomed
all.He said, “ Like a
bouquet of different
owers with different
f r a g r a n c e , t h i s
evening brings you
t h e u n i q u e
opportunity to listern
to four stalwarts in diverse elds ”.
In the array of speakers were two Senior
Ofcers of the State Government,
namely Shri Ramesh Aade and Shri
S.J.Korabu. The rst-named ofcer
explained the nuances of the State Textile
Policy. The second ofcer unravelled the
intricacies of the State Industrial Policy.
The third speaker Shri Amitabh Taneja of
Images India emphasised on the
consumption story and forecast a bright
future for the textile industry. He referred
to the forthcoming 4th edition of
InFashion, a glittering opportunity to
display the strength of the Textile and
Fashion industry. Shri Arun Ohri, Director
of Adfactors Advertising and PR Ltd., the
last speaker, focussed on the importance
of advertising for a consumer product like
textiles.
Shri Rameshji gave his best wishes to all
for New year 2014, and said, ‘ All human
beings always look forward to the New
Year with lot of hopes. We always feel that
the New Year will give opportunity to full
our dreams.’
He continues “ So far as the textile
industry is concerned, the New Year is
bound to be good. The economy of our
two major markets viz the U.S.A and
Euro zone has started looking up. At the
same time, China has its own problems
and the cost of production of textiles in
China is on the rise. With the anticipated
bumper production of cotton in the
cotton season 2013-2014, there may not
be sharp volatility in its prices. This will
also have salutary impact on prices of
man-made bres and lament yarns. In
view of the expected improvement in
textile economy, I urge on all of you to
participate in Infashion 2014 which will
lead to improvement in the top line and
the bottom line of your balancesheet.”
NEWS
11

INVISTA and Lenzing work together to
bring improved performance to denim
fabrics
INVISTA, owner of LYCRA® bre, and
Lenzing, a leading producer of man-made
cellulosics like rayon, modal, and lyocell, are
working together to bring improved
aesthetic performance to stretch fabrics. By
combining INVISTA’s patented LYCRA®
dualFX® fabric technology with
LENZING’s TENCEL® bre, the two
companies are delivering a unique solution
to the industry: cellulosic denim fabrics with
signicantly improved shape retention.
“Given the growing popularity of both
LYCRA® bre and TENCEL® bre in the
denim market, it was only natural that
people wanted to combine them to come
up with really amazing fabrics”, Albiero said.
“However, as mills began experimenting
they encountered issues such as growth,
fabrics not keeping their shape, and fabric
puckering due to seam slippage.”
Lenzing is pleased to work with INVISTA to
help our customers develop commercial
fabrics with strong marketing attributes.
Both companies have global sales,
marketing and technical teams supporting
the developments and they will provide
joint promotional materials as well as supply
chain support and marketing information.
“This initiative represents two globally
innovative bre companies working
together to provide the denim market with
fabrics that meet the performance needs of
modern consumers”, says Michael
Kininmonth, Senior Project Manager of
Denim at Lenzing Fibres Inc. “Superior
comfort with stretch and long-lasting
recovery are set to become the next core
product in women’s wear.”
Garware Wall Ropes receives ‘Top
Exporter Award’ award from ‘The
Plastics export Promotion Council’
Garware Wall Ropes Ltd, (GWRL), a
leading manufacturer of polymer cordages
for the Indian and global markets, was today
honoured with the prestigious ‘TOP
EXPORTER AWARD’ by The Plastics
E x p o r t P r o m o t i o n C o u n c i l
(PLEXCONCIL) sponsored by the
Department of Commerce, Government
of India. GWRL received the award for
being the top exporter of Fishing Nets in a
year. The award was received by Mr. Milind
Mirashi, GM, Exports, Garware Wall Ropes
Ltd. at an award function held in The Lalit
hotel, Mumbai. The award was presented
by Mr. M P Taparia, Managing Director -
The Supreme Industries Ltd during the
award ceremony.
The Export Award Function included
promising companies that, according to
PLEXCONCIL, have created a niche in the
world markets, achieving excellence while
showcasing a deep sense of commitment to
cater to customer’s requirements. The
companies had to meet the council’s criteria
for contribution, dedication, protability,
growth, modest indebtedness and future
prospects. GWRL’s selection was made in a
year wrought with global economic
uncertainties but a time when GWRL
spearheaded its own business in the highly
technology-intensive cordage industry
through sustained product and marketing
innovation. The company’s reliance on
customized product portfolio further
helped it to continue growing much faster
than many of its peers.
Mr. Mr. Milind Mirashi, GM, Exports,
Garware Wall Ropes Ltd. commented,
“We are grateful to The Plastics export
Promotion Council for honoring us with
such a prestigious award. It is a matter of
great pride that the Council has chosen to
recognize the company’s hard work,
commitment and contribution. The award
is a prestigious recognition that reects our
vigorous growth and protability and is an
acknowledgement of our hard work,
commitment and the place Garware Wall
Ropes Ltd has earned in the industry
segment.”
“This recognition will redouble our efforts
to provide customized solutions and deliver
value globally.” He added.
KNITSHOW-2013at A.T.E.
A.T.E. organised ‘KNITSHOW’2013’, an
unique exhibition-cum-seminar, at its ofce
at Andheri on 27 & 28 November 2013.
The show was formally inaugurated by Mr
Kenichi Motomaru, Director, Juki India Pvt
Ltd.
An array of Juki automated industrial sewing
machines for chain stitch operation used for
knit garments like t-shirts, polo shirts,
undergarments and lingerie were on display
at the exhibition.
The machines displayed at the exhibition
were: cylinderbed atlock with puller;
atbed atlock; 4-thread overlock with
metering device; 4-needle atseamer;
zigzag stitch machine; single needle direct
drive lockstitch with auto trimmer;
cylinderbed atlock with fabric trimmer and
auto trimmer for bottom hemming;
cylinderbed atlock with metering device
for tape attaching and tape cutter; electronic
bartack to join elastic ends, etc.
Apart from the live demo of these Juki
machines, seminars on ‘Concept of
improving productivity in sewing industry
and attachments and devices for knits /
lingerie industry’ were held in 2 sessions on
each day.
The show received an excellent response
with as many as 54 visitors from 24 different
companies turning up for the event, which
included owners of various leading lingerie
brands such as Salient, Valentine, Lady
Care, VIP, etc. The visitors applauded this
unique initiative and suggested to organise
such events more frequently as they help in
keeping abreast with the technical
advancements at Juki, an innovative
company with a continuous stream of new
developments.
Many media houses such as Apparel
Online, Fashion Era, Textile Value Chain and
IPF Online also visited the show and took
interviews of the visitors.
CORPORATE NEWS
12TEXTILE VALUE CHAIN | Jan-March 2014|www.textilevaluechain.com
NEWS

New Zealand wool prices rm as
auction volumes remain low
obtained at last week’s auction, helped by
the cancellation of the South Island sale.
Moreover, limited volumes are expected
to be available at the next sale. Wool
Services International’s Coarse
Crossbred Indicator increased by 1.2%
to 498 NZ cents per kilo, clean. A more
detailed review of price movements is
shown in the accompanying table. Of the
12,500 bales of North Island wool on
offer, 93% were sold. At the same sale a
year earlier, the offering totalled 21,745
bales. The cumulative volume made
available at auction this season is now
23.5% down from the comparable level
in 2012/13.
M&S praises online approach
Following on from the notable success of
UK retailer John Lewis’ ‘omni-channel’
approach, high street rival Marks &
Spencer (M&S) has praised the
performance of its online sales during the
Christmas trading period.
M&S.com general merchandise sales
rose by 32% over the eight weeks to
December 24. For the retailer, 2013 truly
was the rst ‘mobile Christmas,’ as orders
from tablets and mobile phones rose by
100% and 80%, respectively.
According to M&S, the company is
continuing to increase the volume
processed through its e-commerce
distribution centre and its new web
platform is on track to launch this spring.
“Our strategy to transform M&S into an
international, multi-channel retailer, will
keep on improving our .com service with
the launch of our new platform and our
new warehouse at full capacity,” said Marc
Bolland, chief executive.
The retailer has reported early signs of
improvement in its womenswear
business, stating customers are
responding positively to its renewed
focus on quality and style. This has
resulted in a small market share growth in
this area during the 12 weeks to
November 24, the rst for three years.
M&S is said to have benetted from good
performance across its key categories
(including coats, dresses and footwear),
coupled with tight stock management.
International business continued to
perform well, especially in key markets
India and China which delivered double
digit growth. International sales were up
8.2% during the Christmas trading
period, compared to UK sales, which
increased by 2.7%
Gildan Yarns to install $14m air
ltration system
Nederman has received an order from
Gildan Yarns, LLC to supply a complete
turnkey air ltration and air conditioning
system to a new yarn spinning facility
currently being built by the company in
Salisbury, North Carolina, US.
Gildan Yarns, LLC is a subsidiary of Gildan
Activewear Inc, a leading supplier of
quality branded basic family apparel,
including T-shirts, eece, sport shirts,
socks and underwear. The order is worth
SEK 93 million ($14.2m).
The Nederman system will reduce dust
levels in the new production facility and
supply conditioned air to the yarn
processing equipment to maintain high
production levels. The order includes
more than 30 automatic panel lters, ne
dust lters, a complete hi-vacuum waste
removal, a reclaim system and 6km of
ducts. It will reduce dust levels to meet
the OSHA regulations (Occupational
Safety & Health Administration) stated by
US Department of Labor and at the same
time reduce the energy required by as
much as 25% over conventional air
conditioning supply systems, according to
Nederman.
Sven Kristensson, Nederman CEO, said:
“This is one of our largest orders ever. It
has been taken in tough competition but
we believe that it is an important order in
a market where the textile industry
increasingly moves back production to
the US.”
The order is booked in the fourth quarter
of 2013 and installation is expected to
start during the rst half of 2014 and be
nished during 2015.
Cold Pruf launches FR baselayer
Cold Pruf has developed a new baselayer
made from ring spun cotton and Protex M
modacrylic in a wafe knit design,
designed to provide next-to-skin comfort
and ame resistance.
“From reghters and welders to
electrical workers
and even certain
t y p e s o f
outdoorsmen,
having a level of
re resistance can
b e i n c r e d i b l y
valuable in some
situations,” said
John Willingham,
p r e s i d e n t o f
ColdPruf's parent
company Indera Mills. “So many
baselayers on the market are made from
synthetic materials that do not respond
well to open ames. Natural bres
combined with a high tech ame resistant
material provide a clear alternative.”
The company said the FR HRC1
garments are rated to HRC1 standards
and are F1506 compliant, the standard
required for electrical workers exposed
to electric arcs and related thermal
hazards.
US-based ColdPruf is celebrating its 100-
year anniversary this year and is seeking
new distributors at the upcoming
Outdoor Retailer show in Salt Lake City.
Schoeller pursues eco-path in 2015/16
Collection
Schoeller Technologies, the Swiss-based
manufacturer of smart and innovative
textile technologies, has stated that
‘fascinating prints with eco-designs’
dominate its 2015/16 Collection which
consists of sophisticated fabrics and
imaginative 3D textile structures.
A company communiqué added that
‘things will be colourful, mystic and
spacey’ in winter 2015/16 but, as ever,
the fabrics will be attuned with a degree of
functionality.
INTERNATIONAL NEWS Source: www.wtin.com
NEWS

Leading Economists opine that every less developed
country in the world has passed or passes through a “T-shirt”
manufacturing phase in the process of evolution from an
Agrarian to Industrial economy. India’s organised Garment
export industry also entered the scene in the early 70s much
like the other under-developed economies in the world while
transforming herself as a “developed economy” since 1991.
The Apparel exports have grown to be US$ 14 billion
industry since post 2005, with the withering away of
quotas, though the industry has not grown as expected
owing to a variety of reasons. The domestic branded retail
fashion industry has also grown to be more or less equal to the
size of India’s apparel exports post economic liberalisation.
Both exports and domestic apparel sectors require State-of-
art manufacturing facilities.
Richard Locke, Deputy Dean of M.I.T.’s Solan School of
Management argues that our insatiable hunger for cheap
clothing, in constantly changing styles has created a race to the
bottom in which brands perpetually push suppliers for “faster
delivery” and “lower prices”. He argues that consumer needs
to break that cycle by, well, buying less of the cheap, fast fashion
in the stores. This unfortunately is not really going to happen
as we all know but what, in this context India as an exporting
country needs to do is to move up in the fashion value chain for
which Indian Apparel exports need to gear-up by producing
higher value garments with more fashion content, while also
making an effort to move away from just “summer” goods to
more Fall and Winter including structured garments etc.
Similarly, we need to have highly skilled workforce with multi-
tasking capabilities and higher productivity and efciencylevels.
In China, as reported in International Herald Tribune in
January 2013, one of the largest factories in Yantai, a coastal city
in Northeastern China called on the local government with a
problem i.e. a shortage of 19,000 workers as the deadline for
execution of an order approached. The ‘Yantai’ ofcials
came to the rescue, ordering all vocational high schools to
send students undergoing training to the plants. This is a
lesson for India’s Vocational Training Providers and the
ofcialdom to work with urgency in a collaborative mode to ll
atleast the peak season requirements of Indian Apparel
industry which in fact deals with perishable “fashion products”.
Apparel industry at the moment is facing similar acute shortage
of labour force. Many factories are now working MUCH
less than their installed capacity despite favourable inow
of orders because of shortage of labour.
In any given year at least 8 million vocational students
work on China Assembly Lines, with the minimum legal
working age now at 16 years. The concerned ministry in
China have ordered vocational schools to ll any shortages in
the workforce in China’s manufacturing plants. India has to
draw many lessons from this example if it has to protect and
progress an industry like Apparel which create massive
employment to rural folks especially women and youth aged
between 18 to 45 i.e. really, no other manufacturing industry
has the potential to create so many jobs. With every Rs. 1 Cr.
investment in plant and machinery, apparel industry creates
about 400 jobs to the most needy sections of society.
Unfortunately, the policy makers have not been paying
adequate attention to the potential of the apparel industry in
mitigating unemployment and even anti-national movements
like Naxalism etc. in certain pockets of the country.
With ATDC’s proactive efforts in the past 3 years through
SMART FastTrack shopoor workforce training programmes
under the Integrated Skill Development Scheme (ISDS) of
Ministry of Textiles, Govt. of India, there has been visible
improvement on the ground. In 2010, when ATDC took the
ambitious challenge of training 1,72,000 candidates in 5 years
it looked a daunting taskand there were many sceptics around.
Now having successfully trained over 52,000 candidates in the
2 year period of the pilot project of ISDS contributing to over
50% of entire Ministry of Textiles’ target, ATDC network has
turned a new leaf in the journey of “Skilling India” and making
the “mission” a movement by the involvement of many State
Governments / Agencies / NGOs and leading political and
other personalities. This has catalysed investments in new
apparel manufacturing facilities apart from rejuvenating
languishing crafts in which over 10000 women have been
trained. If the Apparel industry decongests from metros
and moves to where the workforce is available, there is
huge opportunity to create “Apparel Economy” at work in
many parts of India especially in the existing and new textile –
apparel clusters. Going forward “skilling India” has been made
that much more possible and achievable through the efforts of
TEAM ATDC.
Many thanks to all those who have directly or indirectly
contributed and continue to support this exciting and
challenging journey. The 2,50,000 target for training in next 4-
5 years beckon the TEAM ATDC to put even more efforts with
dedication and commitment.
LESSONS FROM CHINA ON HUMAN RESOURCE ...
Dr. Darlie .O. Koshy
DG & CEO,
ATDC & IAM
SKILLDEVELOPEMENT

The Employment Commission of India in the report The
Challenges of Employment in India laid heavy stress on the
issue of Skills Development in India and pointed out that
serious action has to be taken in this regard. The Govt. of India
has resolved to train 500 million people by 2022 in the
Employability Skills including English. As a result Govt. of India
has formed National Skills Development Corporation to
identify skill gaps and to promote skill development in India.
WHY ENGLISH MATTERS ?
English Edge: ‘Earn 34% more than others’
Those who speak English uently earn up to 34% more
than those who don't speak the language, a recent report has
found, conrming the link between an education in English and
the scope of employment opportunities.
"Men who speak English uently earn wages about 34% higher
and men who speak a little English earn wages about 13%
higher than those who don't speak any English," the report said.
According to the report, only 20% of the Indian population can
speak in English, and only 4% would be considered uent.
Where one lives is a key determinant in accessing English
medium education, it found.
"Politicians who don't like English are captains of a sinking ship.
Higher education in English helps us get better integrated into
the globalized organized sector and labour market. Those
without access to higher education in English are being left out,"
Dr Shariff told TOI.
Source:Times of India dated 06/01/14
The Book ‘Future of English in India’, and Research by
World Bank and The Florida and Connecticut Universities
reveals that 13% to 34% increase in wages results with better
communication in English. In each Metro Like Mumbai,
Bangalore, Delhi etc. almost 500 centres train Nurses,
Drivers, Peons, Courier Agents and House Maids in English for
Higher Wages.
Lack of the English Language knowledge is a bottleneck in both
Admission & Placement in Technical & Professional Colleges all
over the Country. Those, who have good communication
skills are readily selected in Campus Interview at high pay
packages than those who lack communication skills.
Undergraduates & Graduates with good English easily get jobs
at BPO’s and Banks.
The Film ‘English Vinglish’ proves how housewives can
upgrade their status in the family by learning a few
communication skills
Source: ET, July-Aug. 2013 article ‘No Full Stop in India’
ENGLISH IN THE WORKPLACE
A problem faced by any general-purpose ‘English for the
workplace’ training course is that job-related skills are often
specic to context. Each work sphere has its own special
requirements with regard to communication for example
 there may be particular kinds of reports or forms to
be lled in,
 or perhaps interactions with customers need to
conformto a corporate policy.
For these reasons, Workplace English training is best carried
out using materials taken from the workplace itself. In India the
main focus seems now to be on the idea of ‘English for
employability’, but there is equal importance of English skills in
career progression.
Many of the better universities now provide co-curricular
courses in English communication and in soft skills to ensure
that their graduates are employable. The larger employers are
also working closely with the universities and colleges which
supply their new recruits. But many colleges do not provide
such courses, or do not have the qualied staff to do so. This
forces students into private sector ‘nishing schools’ to bridge
the gap Larger Indian businesses are already partnering with
government departments to help improve the English and
employability skills of both students in colleges and those in
Class 10–12. The Delhi branch of the Confederation of Indian
Industry (CII), for example, worked with the Municipal
Corporation of Delhi to implement a pilot programme in Delhi
schools. Many large companies have similar relationships with
local colleges, helping ensure that students acquire
communication skills before they graduate.
Much of the ‘talent pool’ crisis in India at present relates to the
number of graduates who apparently lack ‘employability skills’.
Mr. MOHAN KAVRIE
ENGLISH COMMUNICATION: AN EMPLOYABILITY SKILL
Dr.V.K Batra
Mrs. Parvin Batra
Skills Development Experts
Global Competence, Panipat, Haryana
Educators, Consultants, Trainers and Auditors
Million by
2022
500 The Number
of People the
government
want to train
This Includes
imparting technical
& communication
skill
English will be a
major part of the
communication skill
development initiative
SKILLDEVELOPEMENT

NASSCOM, the IT-BPO industry organisation, complains
about the ‘low employability of existing talent with only
10–15% employable graduates in business services and 26%
employable engineers in technologyservices’.
EMPLOYABILITY SKILLS
Employability Skills can be dened as the transferable skills
needed by an individual to make them ‘employable’. Along
with good technical understanding and subject knowledge,
employers often outline a set of skills that they want from an
employee. These skills are what they believe will equip the
employee to carry out their role to the best of their ability.
WHAT DO EMPLOYERS WANT?
Although most jobs in the corporate sector now require
English, many of the ‘soft skills’ which make graduates
employable are not language specic.
Skills That Employers Want
• Communication and interpersonal skills,
Can you explain ideas patiently and clearly?
Can you handle telephone calls well?
Can you communicate appropriately to other
employees who may be more or less senior?
• Problem solving skills
Are you an analytic but creative thinker?
Have you a condent, polite manner?
• Using your initiative and being self-motivated
Can you work on your own, without being told to do so?
• Working under pressure and to deadlines
Can you handle stress that comes with deadline?
• Organisational skills
Are you punctual and dressed appropriately?
• Team working
Can you work in a team?
• Ability to learn and adapt
Are you able to learn new technologies and business
processes quickly?
• Numeracy
Are you familiar with standard ofce software?
Are you able to use data and mathematics to demonstrate
a point?
• Valuing diversity and difference
Can you communicate well to speakers from another
culture or social background?
• Negotiation skills
Can you make clear presentations to colleagues?
Most workers in the services sector, whether in ofces, BPOs,
hotels or shops – need to communicate in at least two different
directions: to clients (whether in India or abroad) and within
the chain of management (both up and down, and with peers)
in their own organisation. Here workers may require:
• both spoken and written English language skills
– can you tell the difference between a manager’s request and
an instruction?
• knowledge of specialist terms within the trade, profession,
organisation or relating
During 6th Global Skill Summit, held at FICCI, Delhi it was
brought to the notice of Mr. R C M Reddy (Chairman FICCI
Skills Development Forum) that along with the Employability
Skills, 5 basic Life Skills are also very important at school level
therefore employability skills are to be preceded by life skill
based education, but it is pathetic to nd that students are
qualifying +2 levels even when they don’t know the basic
vocabulary and Grammar basics like proper paragraph writing,
letter, application & resume writing.
Global Competence has conducted various experiments in
Management & Technical Institutes by giving input regarding
Communication Skills & facilitated in the successfully placement
of B.Tech Textile Engineering students from Panipat , for
placement in the Textile Corporate Sector like Nahar,
Vardhman and Aarti groups in Ludhiana. We have interviewed
100 of candidates personally to nd that only 5 % of the
candidates could communicate in English which was a basic
requirement in the Home Textile exports industry of Panipat
which has more than 3000 crores of direct exports out of Rs
11000 crores of textile industry production from Panipat textile
cluster. This supported by the facts published by various
sources at national & international level
BIBLIOGRAPHY:
 www.Wikipedia.com
 KP Narayan Kumar & Others
 David Graddol
 No Full Stop in India
 English Next India
 The Economic Times Magazine
 British Council 2010
SKILLDEVELOPEMENT
The 58th Show was organized on 6th to 8th Jan, 2014 by
CMAI ( Clothing Manufacturer Association of India) at
Bombay Exhibition Center, Mumbai . Show has appx 130
exhibtiors from various local garment barnd in ethnic, formals,
semi formals for men’s & women’s.
There are visitors ow from across country, they are buying
agency, distributors, retails, merchandisers , organized retail
buyers, fashion designers, associations, government ofcials,
many more.
CMAI SHOW REPORT JAN 2014

19
The banking sector seems to be averse to the textile
industry, despite it being the premier industry of the country.
These days, the way bank finance is being done, the banks
seems to be more inclined to way hi-fi industries. They should
also consider the industry which is there for decades in the
country and contributing to the significant chunk of foreign
exchange earnings in country’s economy. It is right now the
second largest industry in terms of foreign exchange earnings.
However, if we take a history of last decade, it has been always
the number one industry which is contributing towards foreign
exchange earnings consistently. India has to keep its own mark
of showing dominance in the international market as the best
emerging country in the world and it has to compete mainly
with China. At this stage, competition has no limitation. Our
textile industry is hardly competitive compare to China though
we have all resources available from skilled workforce to raw
materials. However, if we want to develop a base and make a
foundation towards most growing economy, we have to
increase our export earnings and hence, we just cannot ignore
textile industry as it is the most potential industry.
We have seen a major shift in global consumption from
the manmade fibres towards natural fibres due to global
warming issues. We are very strong as far as all types of raw
materials are concerned which are required to produce
textiles whereas China has its own limitations on fine quality
cotton varieties. It is better to focus more on India’s strengths &
weaknesses than comparing it with any other country. Just to
give emphasis on how India can substitute export earnings, the
comparison with China is given.
If we consider the growth within textile industry, there are
very few mega-scale projects and very large numbers of
MSMEs. MSME industry is the one which is going to contribute
to the growth of the textile industry. They have their inherent
problems like shortage of funds, collateral securities,
inadequate net-worth etc.
As far as entrepreneurs are concerned, they are eager to
invest and identify many pastures. Consultants like us, keep
them busy by giving various options whereas when it comes to
actual implementation part of it, most of them struggle to get
approvals or green signals, mainly because lack of support by
financial institutions. As a matter of fact, it is always seen that if
financial institutions become a bit lenient on this industry, there
would not only be large investments happening in this industry
in terms of exports but also it would satisfy the needs of the
large existing domestic market. We have a very large
BANK FINANCE IN TEXTILE INDUSTRY
Avinash Mayekar,
MD & CEO,
Suvin Advisors Pvt. Ltd.
population & textile demand of this population is very high &
we foresee potential increase in this demand in coming years
due to change in living standard. The entire market segment is
huge and if the industry serves both the opportunities i.e.
exports as well as domestic, there would be a huge market that
would be available.
However, the way things happens in this traditional
industry, it keeps on crying for modernization and introduction
of new technology. There is a huge necessity of adopting not
only the state-of-the art practices with minimal labor
interference but also uninterrupted quality monitoring
systems. Moreover, new investments need to be brought in
the country. But these factors are not getting enough support
from financial institutions, due to lack of knowledge and not
having clarity on the vision of the industry.
If we see from financial institution point of view, they are
concentrating more on more profitable business
opportunities. When they scrutinize a project report having 6
to 7 years of pay-back period with DSCR ( Debt Service
Coverage Ratio) of 1.5 to 1.7 or IRR ( Internal Rate of Return)
of 12 to 14%, the banks are unable to find the lucrative
proposition from the financial angle. Hence, they are a bit
hesitant to sanction loans in this particular industry. However,
there is sustainability of more than hundred years of existence
and good reputation of this industry and that's why the banks
have to think from the point of view of sustainability of this
particular industry. Entire industry cannot be judged on the
basis of a couple of bad experiences of serving term loans. If we
look at the overall scenario, textile industry fared very well in
servicing the term loans.
Literally, it needs to be seen why financial institutions have not
shown much interest in textile industry in spite of having good
history of return on investments.
The textile industry also has advantages as far as employment is
concerned. It is one of the largest industries, employing about
55 million of country's population. It has shown very good
network throughout the entire nation, almost in each and
every state of India. Value addition is tremendous, be it in
spinning, power loom weaving, shuttlelooms, garmenting and
now the technical textiles. There are many sectors and many
ways by which income can be generated. If we see from the
industry point of view, when they compete with other
countries, they find that the financial institutions are charging
interest rate that is much higher than many other countries and
hence they find it difficult to sustain in the market.
Industry needs some sort of support from financial
institutions, how the interest rates can be brought down for
this particular industry in order to gain more export earnings.
At the same time, the financial institutions are looking for
immediate and huge returns. The payback period is almost 6 to
COVERSTORY

7 years in case of most of the sectors. The industry is highly
capital intensive. Hence, they find it very difficult to give loans to
this industry. These are the few things that need to be
improved upon and to be thought over.
If there is a good dialogue between the industry and the
financial institutions, most of the things can be sorted out.
Maybe a third party intervention e.g. consultants like us can
help financial institutions as Lenders Independent Engineers i.e.
LIE which is a new concept adopted by a few of the
nationalized banks. We can help them in understanding the
nature of the project, level of technology to be used, proper
justification for the costs, appropriate marketing set up,
planning and monitoring of the project on continuous basis. So
whenever a new project comes to a bank, nominated
consultant by the bank can keep on giving monthly or quarterly
reports on regular basis which can monitor the progress of the
project along with fund flow statement from project start to the
completion to avoid the misuse of the funds provided by the
banks. Consultants can help in executing the project with latest
tools and software. This will help the financial institution to
understand the crux of the industry.
The financial institutions may create a platform wherein
not only the consortium of few banks but also a consultancy
firm can add value in understanding the project concept, in the
great interest of the industry. If at all they think of taking a call on
various aspects of a project which are being prepared or
submitted to various financial institutions, they can really
understand how things are happening in the industry and then
they can finance such project. They also need to understand
that all projects are not similar and each project has its own
merits and demerits.
Conclusion:
A value addition in terms of appointing a LIE ( Lenders
Independent Engineers) for all projects would bridge the gap in
between the industry and the financial institute. A project
monitoring committee can be formed by involving professional
consulting firms to decide the effectiveness of the project.
Textile industry has a tremendous potential in the global market
and it would make India a strong foreign exchange earner
hence financial institution should look at its sustainability rather
than immediate returns from other industries.
COVERSTORY
TVC : What is your experience in getting financial
accommodation from banks for the constraints and it
suffers from various problems.
A major handicap of this sector is non availability of adequate
credit on time. This happens unlike the corporate sector
which has unhindered excess banking and industrial finance.
Because powerloom sector is not to link to collateral
security to that extent.
There are 23 lac powerlooms in India. Of which only 15-
20% take loans from banks and/or even have accounts in
the banks. 75- 80% of powerloom job workers sell directly
to master weavers. Power loom consist of 96%
contribution in Indian textile cloth production as compared
to mills which only have 3-4% contribution. Major
Powerloom hubs are Bhiwandi, Ichalkaranji,Surat.
TVC : Are powerloom workers having enough working
capital limits to purchase and stock cotton yarn to cover
your annual requirement?
Power loom factories are unlike to stock cotton yarn, the
main raw materials because of lack of bank finance. They
carry stock of just 10-15 days. Fabric is made immediately
and sold as they do not have enough money to buy excess
yarn. As a result, sometimes they just sell fabrics below cost.
Average rate of Production is 60-70meter / day / loom.
We have also observed yarn price race where merchants
store yarn in ware houses and create artificial scarcity. Hence we
have proposed to the Government to establish yarn depot, where
yarn stored and be available at Ex- mill prices. We do not want any
agent in between for our yarn requirement, as it is a costly affair for
powerloom sector to depend on yarn agents.
TVC : What about Export?
As we are small scale units, we exports through exporting agents.
TVC : What’s your experience about collateral Securities?
The business model of the power loom industry is something
which has no place in management books. The powerloom sector
is in the name of one person, labour are in the name of different
person and person running business has no documents with him.
In such circumstances, how can you give collateral security and
hence they failed to get banking funds.
TVC : Are your proposals for long term borrowing under
TUFS considered without many problems?
Currently, Only 20 big companies are taking benefits of current
TUFS scheme. We have proposed government a TUFS scheme
Rs. 25000 to 30000 per power loom. This will enable recipient to
few parts of machine which will give uniform, defect free fabrics
and increase productivity of power loom. Government had
announcescheme, its in process of implementation.
Job worker do not have any source of funds / capital. Master
weavers invest in sector which is borrowed from different
entrepreneur.
VOICE OF POWERLOOM SECTOR...
Interview with Shri Momin, President of Bhiwandi Powerloom Federation Ltd.

COVERSTORY
TVC : The Growth and Development of the textile industry
depends on:Government policies rates on excise and custom
duties and bilateral trade agreements with different
countriesaccording to larger access to their textile markets. It also
depends upon availability and prices of cotton & its export policy.
There is a feeling in textile industry that banks generally do not
consider them as the most preferred clients. What would you like
to comment?
K.R & R.K. : Our banks have largest number of textile account
from Ahmadabad & Coimbatore. Although they are not most
preferred clients but these mentioned clients are. We don't
consider most preferred because of heavy competition within
industry, China factor, currency uctuation, import of machinery
from Germany and other countries, but technology is outdated in
a very fast pace now a days.
TVC : Textile industry is facing cut-throat competition because of
the existence of the very large industry in the country, prevailing
malpractice of copying designs of reputed mills etc. Result is erce
price competition andlow margin.
Do you think that banking sector is therefore not enthusiastic in
lending money? If so, what would you like to suggest for ensuring
adequate fund ow to the textile industry without compromising
on safety of banks money?
K.R & R.K. : We have restructured many textile hubs like
Coimbatore, Tirupur and many more. High uncertainty in the
industry, Volatility in fashion trends due to new type fabrics and
technology. Out of total CAP fund, we keep 10% for Textile
industry. We take collateral security like x assets. We only
nance 20 to 30% of collateral security value.
TVC : There is a built-in constraint on availability of cotton in the
world as lands are now more devoted for food grains production.
Further, awareness to avoid pesticides and use of inorganic
fertilizers also inuence.
Mr. R.K. Shetty,
Chief Regional Manager,
Mr. K. Ravichandra,
Chief Manager
Indian Overseas Bank ,
Mumbai.
Since the cotton supply always faces large constraints,
international buyers have already started extensive buying of
cotton.Although, cotton crop is picked 3 to 4 times in a season,
rst and second picking is always of very good quality. Indian mills
also prefer to purchase cotton before the season tapers off. How
will you like to meet the fund requirement of domestic mills for
purchase of cotton? Do you require safeguards for this?
K.R & R.K. : Cotton season is October to March. Companies buy
in bulk quantity of cotton during this season as they get best quality
at lower rate compared to off season. Banks provide “Additional
Adopt Facility” to companies who require funds to purchase
cotton during season. Before giving this facility we check their
projected, expected and achieved performance via April-
October balance sheet. If 50% of the projected is achieved, we
sanction the loan for Addition Adopt facility. Approximately 60%
of our clients avail this facility.
TVC : A long-standing demand of textile industry is to avail funds at
low interest rate. Government gives subvention of 2-3% to give
credit to some industries at cheaper rates. However this is
restricted to a very small segment of export production. What
would be your suggestion for a low concessional rate of interest
for textile industry?
K.R & R.K. : Textile ministry should decide this along with RBI. For
export, lending rate is BR (Base Rate) +0.75 & for local market
lending on CCR (Counter Party Credit Risk). We give rating to
SME's from 1 to 8. 1 is Good & 8 is worst as per CRISIL rating. If
SME have good score, interest rate is good.
TVC : Some 2-3 years ago many mills were eager to avail CDR
(Corporate Debt Restructuring). However very few receive it.
Working of the mills has improved since then and general feeling is
that credit worthiness has also improved. What is your take on it?
Whether you have experience of any textile nonperforming
assets in the recent years?
K.R & R.K. : Yes, we have a few textile nonperforming assets. We
have helped them to restructure the mill/unit by checking reasons
behind thate.g. Diversication, mismanagement, loss, seasonal
downtime etc. We have done many CDR in year 2006-7 in
Coimbatore.
TVC : If textile mill approach you for enhancement of credit limits,
what is your approach?
K.R & R.K. We purely give to merit criteria. We judge company
on process of improvement, stagnation, funds invested in
production, export etc.
INTERVIEW WITH BANK
Indian Overseas Bank , Mumbai.
ORIENTAL BANK OF COMMERCE, KADI, GUJRAT
The chain of industrial activity of textiles starts with ginning. Such
factories are located in cotton-growing belts and hence away
from cities and towns. Ginning is a seasonal activity and functions
from the time of rst cotton picking till the last picking of the crop.
Ginners which do ginning on their own require larger dose of
working capital credit than ginners which do job-processing.
TVC had a chat with a bank & a Chartered Accountant in Kadi,
Gujrat,
TVC : Level of banking nance required by ginners
Ans : Depend on size of production capacity, i.e for 48 gin Term
loan required 3.25 crore and CC 7.50 crores.
TVC : How the loan account is operated – regularity,
Ans : No delay and no defaulter due to regular collection.
TVC: Is the working capital loan sanctioned to individual ginners
adequate or there are unfullled demands for enhancement of
working capital?
Ans : During season time ie. For 2-3 months, take more
amount for WC, they repay immediately after season. Fixed
asset for security.

Interview with Mr. Nilay Rathi,
Qualied Chartered Accountant &
Management Post Graduate from
Jamnalal Bajaj institute, Mumbai. He
has 15 years long & wide experience
in different industries like Steel,
Packaging & Textiles. Currently
working with well reputed Textile
company as General Manager- Commercial.
TVC : What is your experience in getting nancial
accommodation from banks? Do they respond within a
reasonable time and adopt positive approach?
NR : The bankers take an overall view of the running of a
company. It indicates the company history, its legacy,
turnover , composition of Directors etc. MSME units may
have problems to get nance from banks. Textile Industry is
peculiar being a “Low Margin , Long Working Capital
industry cycle”
TVC : What’s your feeling on export of cotton ?
NR : The marketing of cotton is a virtual gamble because of
tremendous volatility. The volatility factors are there due to
uctuation of cotton prices, weather conditions,
Government policy intervention, Commodity market, etc.
Fiber & Yarn manufacturer are always insecure due to high
level of volatility in this market. We need more stable
market. Volatility does not benet farmers or buyers. Only
middle men get beneted by volatility. China & Bangladesh
due to mass production dominates price of cotton bre &
yarns. Export of cotton should be to the tune of excess
production in the domestic market since cotton available in the
market will be consumed for nished fabric which can generate
more exchange revenue to the government.
TVC : What’s your experience about collateral Securities?
NR : We need to give 1.25 times collateral security for required
amount of loan.
TVC : Whether your proposals for long term borrowing under
TUFS are considered without many problems?
NR : We had faced many problems related to TUFS though we
have a good position in the market. Government gives Unique
Identity Number ( UID) for TUFS loans, rst come rst served
basis, if any company fails to plan in advance to take TUFS loan and
if it happens to apply late, company may not get UID number and
hence not eligible for TUFS subsidy. Hence the equivalent benet
is not available to similar industries who had done expansion on
same line in same period.
We request to government that application received during the
black-out period should be made eligible for TUFS benets. We
also request that application which were unsuccessful in getting
UID number gets extension of the sectorial CAP and should get
priority when the fresh TUFS start.
TVC : Do you borrow funds outside TUFS for long term? If so,
what is need for such funds and what is the outlook of banks?
NR : Our projects are conned to textiles and hence they tailored
to the TUFS format hence mostly our loans which are eligible for
TUF benets are under TUFS.
INDUSTRY VIEWS ...
COVERSTORY
Views of Mr. Surendra Shetty, 3
Decades Experience in Finance,
Qualied as M.Com & LLB ,
Currently working as Chief Financial
Ofcer ( CFO) of Siyaram Silk Mills
Ltd.
Siyaram Silk Mills Ltd., is a public
limited Company, is in four major
verticals – Yarn Dyeing, Fabrics, Readymade Garments &
Furnishing. The Company has paid up capital of Rs 9.75
crores of which 67% is held by promoters & balance by
general public.
The principal raw material is Yarn, sourced indigenously.
Siyaram buys Polyester Viscose yarn in bulk & also uses
natural yarn in small quantities.
The Company believes in remaining on the forefront by adopting
innovative & state-of-art technology. It has been modernizing its
facilities on regular basis & has consistently made investments in
technological up-gradations. This has enabled the company in
offering contemporary & value-for-money products to its
customers.
The company has been prudent in managing its short term & long
term nances & has never diverted short term nances for long
term purposes & vice versa.
The Company has been aptly supported by its bankers in all times
& the company believes that the bankers have been an integral
part of its success story .
Timely Support form Bankers…

Dashmesh Jacquard & Powerloom Pvt. Ltd.
58-A, Sec-25, Part-1st
, Industrial Estate, HUDA, Panipat – 132 104 (Haryana) India
(Ph) +91 180 4001938 (Talefax) +91 180 2660975
DASHMESH
Electronic Jacquard Suitable for
Rapier Looms & Shuttle Looms
Available Hooks:- 448 – 1344
www.dashmeshpowerloom.com / www.warp-tex.com
Electronic Jacquard For
Handlooms (cranks or without
crank type mode)
Available Hooks:- 64 – 640
An ISO 9001 : 2008 Certified Company
Approved By Ministry of Textile (Govt. of India)
&
Benchmarked Under T.U.F.S.
Electronic Jacquard For Various Type of Looms
E-mail: info@dashmeshpowerloom.com / sales@dashmeshpowerloom.com
Electronic Jacquard Suitable for
Narrow Weaving machine
(Tape Looms / Label Looms)
Advt.

25
COVERSTORY
COST COMPETITIVENESS IN TEXTILES AND CLOTHING SECTOR
Prof. M.D.Teli,
Institute of Chemical Technology ,
Matunga, Mumbai 400019
• High Stake involved in Growth of Textile Industry:
We all know that in Indian economy, Textile and Garment
sector plays an important role as it is considered to be the
mother Industry. More than 45 Million people are dependent
on this segment and thus it’s financial health directly affects the
Indian GDPgrowth and the people of the country. It is, hence,
not only important from the point of the economy, but also
from the point of looking after millions of families which are
dependent on this segment. As the retail segment is increasing
rapidly, this number of dependent people on textiles is further
increasing.
Technology Up-gradation Fund Scheme (TUFS) had been
introducedby the Govt. of India in 1999 in order to remove
obsolescence from the industry and to provide Indian Textile
Industry a technological edge to compete with the products
from other nations.India’s Textile industry is also diverse , but
fragmented and highly centralized and distributed in the form
of small and medium scale Industrial units(SMEs). TUFS from
Government of India –Ministry of Textiles, did help the
industrialists who wanted to modernize their Units and thus
they obtained not only the interest subsidy to thetune of 5 %,
but in some segments, some percentage of upfront subsidy on
the capital invested. The important effect of this scheme is that
we have seen distinct interest on the part of the entrepreneurs
to modernize their units. This was especially necessary since as
per Agreement on Textile and Clothing (ATC), from 1st
January, 2005, the quota has been removed in respect of
exports from India to anywhere in the world.Since MultiFibre
Agreement (MFA)has been integrated in to WTO package, the
barriers of trade were lifted and a large number of markets
were left open for free-for-all fierce competition globally.
Naturally consistent high quality, delivery on schedule, capacity
to manufacture defect free long length fabric, right first time
approach and above all cost competitivenessbecame the
salient features of Textile and Clothing business. Hence in the
recent years, say in last decade and half ,we have witnessed
some of the large players in Textiles totally revamping their
units and establishing modern composite units from fibre to
not only readymade garment fabric, but in some cases up to
garments. The capacity they put was individually quite huge
and thus, it also depended upon their ability to attract business
for such increased capacity and in this respect the collective
image of Indian Textile Industry does play a significant role.
• Technology Upgradation Fund Scheme:
TUFS not only helped the industry to modernize, increasing
their product quality, value realization, turnover, as well as cost
per unit of production, but it also enhanced machine
productivity,and reduced amount of utilities requiredper unit
production. However, in India these utilities have shown
drastic hike in price in many a places and specially in cities it has
become difficult to the entrepreneurs to manage the cost of
production at the lowest level to obtain reasonable profitability.
The new TUFS also encourages investments in common
infrastructure or facilities by an industry association, trust or co-
operative society and at number of places special textile parks
with integrated facilities are sanctioned wherein up to 50%
upfront subsidy is offered.
The government has also announced that TUFS is to continue
with an allocation of Rs 12,077 crore for the 12th Five-Year
Plan. As against allocation of Rs 15,404 crore , in the 11th Plan
an expenditure of Rs 12,383 crore was incurred and from that
point of view this provision is indeed quite welcomed one. In
addition we know that various State Governments such as
Gujarat, Andhra Pradesh ,Maharashtra, etc are providing
impetus to the Textile industry under their state Textile Policy
by further subsidizing their investments and also providing
utilities at subsidized rates.All this is understandable, given that
the high level of stakes involved in the growth of this industry.
• Findings of the Survey by ICT:
With all said and done, the point remains to be seen as to what
is the level of our average cost of production? In the recent
survey which we did for branded Textiles among the youth, it
came out veryclearly that there is a distinct shift in the
purchasing decisions of the customers who prefer to pay extra
and go for the branded goods. Next query as to what salient
features they expect from such branded goods? The response
indicates that the consumers appreciate their consistent
qualityin terms of fastness properties as well as feel good factor
and modern designs with the changing fashion trends. It was
also explored in our research as to whether the consumers are
getting aware about eco-friendly processing and the response
indicates that although in minority, but such a small proportion
is slowly but steadilyincreasing which is aware about Textile and
Clothingare needed to be manufactured in a safest
environment and also with least of damage to the ecology. It is
also expected to take care of all the workers who manufacture
the same andtheirhealth, safety as well as due wages have to be
paid regularly, which intern makes the Brand image.The
consumers also clearly said that they would not mind paying a
little extra money if they are guaranteed that their Band is
involved in fair trade policy,and manufactures the goods
following sustainability model with least of Carbon footprints.
The good governance as well as fair trade with adherence to all

26
the laws of the land is equally important for the external image
of the company or the Brand, and the consumers surely
would not like toendorse any Brand which is flawed on these
account.
Although this survey by ICT students throws light on the
attitudes among the Brand customers, the question comes to
one’s mind as to whyshould theybe concerned about the
Brand image? Very simple, today garments are not just used as
the ones for functional properties depending upon its use as
formal wear, casual wear,sportswear,night wear, etc.Along
with these different kinds of clothing, the affluent and also the
professional class is using the particular selected branded
clothing to make their style statement. They want to usethem
as medium for expressing their personality and hence, naturally
Branded clothings are scoringhigh as compared to unbranded
ones. Of coursein volume terms, unbranded are sold in
manifold as compared to Branded clothings ,but in value terms,
the revenue earned and profitability achieved is highest in such
niche clothings. Except for a few, Indian Brands most of these
Brands are from overseas and we know most of the clothings
which are sold by these Brands are actually supplied from
countries like,China, Bangladesh, Srilanka, andIndia.In fact
country like Bangladesh has supersededIndia in its garment
export performance, the reasons being relatively lower wages,
higher productivity and relatively less stringent environment
laws along with special status like MFN(Most FavoredNation).
• Sqqueezing the supplier to death ? How long?
When we look at these developments wherein clearly
Branded clothings are going to dominate the
market,Technology up-gradation definitely becomes essential
in order to meet the stringent quality standards required by the
brands. We also know that these brands outsource their goods
from countries like India,Bangladesh, Srilanka, etc. It is well
known that the profitability of these Brand owners and retailers
is more than 150 to 200%. Where as the one
whomanufactures such clothings, right from spinners, weavers
and processors as well as Garment manufacturers, their
profitability is bare minimum struggling to reach in two digit
level. And what happens to those who supply other raw
materials like dyes, specialty chemicals, etc? Having supplied
best of these ingredients for the highest quality and
performance, no payment comes in their hand before 90 days
minimum. Above all, a lot of their capital is stuck up and to get
the payment released of their earlier delivery, they are
compelled to supply them a fresh lot carrying always a hanging
sword of uncertainty that they will lose business for ever, if they
do not supply. I clearly know for sure at least3-4big industry
houses are refusing to pay such suppliers whose more than 3-4
crores of outstanding is lying with them? How long one could
survive in such a situation?Squeezing yourprofitabilityin the
presence of increasing cost of moneywith higher interest rates
on the working capital, will surely take us to the path of
sickness. But does that mean there cannot be profit in this
business? Not at all? It is the question of collective bargaining
strength of the Indian manufacturers, who are able to provide
the Brands International quality? Why should not they
negotiate with the Brand owners to enhance rates for their
products, as that is essential in order to maintain the financial
health of all those involved in this supply chain. I am sure the
maximum money if anyone is making in this business are these
Brands and retailers and its time collectively the suppliers of the
Garments negotiate with them with strategy and unity. I
understand it is easily said than done, but of course not
impossible. End of the day it is our collective responsibility to
rise to that level where in we can dictate to certain extent the
minimum cost of production?
• Cost cutting using latest Technology: Reality check?
One of my recent experiences of visits to a large process
housewith composite operations and supplying to the world
famous Brands has been that, although it proudly claims as the
most modern process House with continuous processing
operations of cotton, polyester as well as knits, the real
advantages which are envisaged in such operations of
continuousprocessing remained more so on the paper. This
is because while these latest Machinery are supposed to
process 2-3 lakhs meters of cloth per day, the ordered lot sizes
on the average being processed by them arenot more than
25000 meters. The very nature of getting the order finalized is
step wise, where in samples are first got approved and then
although a lot of 25000 meters of specific fabric is ordered for
processing, actual schedule of colours and shade willfollow and
invariably it amounts to either two to three different shades(
different depths) or 2-3 different hues of these shades? What
does that mean as far as the final dyers is concerned? It only
means the lot size processed at that stage is 8000 to
12000meters. When such a drastic reduction in lot size takes
place the overall advantages of continuous processing get
eroded and thus the cost per unit production rises in addition
to reduction in productivity due to change over of shades
etc.Any corrections required during redyeing or finishing
further increases the delivery time, along with increase in
reprocessing cost bringing down the profitability drastically.
Sometimes the delivery by Air freight wipes away the total
profitability and the wholeoperations become a futile exercise
bringing about losses in order processing.
• Multiple Dimensions of Production of Fabrics and
Garments :
Every element has to be taken into consideration when such
manufacture of Textile and Clothing operation is to be
considered. Besides proper quality of raw materials, their cost
has to be minimum which itself offers dichotomy. Increasingly
the world over, environment compliance and compliance
from the point of view of REACH are becoming increasingly
essential and hence certification from suppliers of dyestuffs and
chemicals becomes essential, which intern increases the cost
of raw material. Then comes the cost of processing and
conversion, where in besides technological competence, the
COVERSTORY

27
cost of utilities and labor and machine productivity come into
picture. The modern machinery requires very much significant
investment and such investment has to be serviced out of the
earnings of the company. Manpower, skilled as well a unskilled
are to be retained, in a scenario whereinthere is a great
shortage of the same.In general 30% shortage of the labor force
has been observed even when we shout that there are millions
without anyemployment. I have been one of the strong
proponents of , not to use that high degree of automation
where in such non critical steps in supply chain can be handled by
the labor forcewithout compromising the International quality
standards. In other words while best of technological
competence has to be established with latest machinery, certain
aspects such as raw material handling, delivery and finished
products handling, packing and delivery can be done by unskilled
labor force rather than totally dehumanizing this labor intensive
Industry which is providing means of their survival. However,
since last 3 years, when NREGA is being implemented in
various villages , migration of workers is greatly reduced and
laborcrunch in states like Punjab, Gujarat, Maharashtra is being
felt and may of the industrialists are trying to see the alternative to
this situation in having highly automated operations. They want
to beat the uncertainty, increasing wage costs and maintain the
delivery schedule. How far it becomes cost effective operation,
only time will tell us.
In the fierce competitive world of Textiles and clothings, there
are a number of dimensions where in your production activities
can suffer; may it be poor quality of raw material making it difficult
to achieve final accepted quality norms,poor quality of utilities
and sometimes insufficient availability, like in Tamil Nadu, some
places not more than 6 hrs,electricity is available making it
incumbent to use the DG sets and thus eroding profitability,
labor shortage, and stringent environment laws or infrastructure
problems in maintaining delivery schedule as ports are
busy.Finally business is likely to suffer and your costs of
operations are going to increase if all these aspects are not given
due attention.
While it is world known that costing is an important parameters,
its control is one of the main aspects of maintaining the growth
profile. However, when cost of living is rising, when there is such
a hike in inflation and wage revision, there is always a strain on
your ability to shrink your costs beyond certain level. In fact at
some point of time yourealize that you cannot reduce costs
beyond certain limit simply because your input costs
cumulatively come much above the prevailing price you would
get from your Brands whom you supply.And it is here then the
need is felt that, Can we if not alone, collectively through CMAI
or such bodies negotiate the minimum cots to be asked from
these brands so that there is certain definite level of profitability
is maintainedin your business which has to grow and along with
it, the connected people have to grow? And it is here those who
have ability to dictate should come forward and start venturing
on this side so that costing per piece negotiated to that final
Cent level, could be restrained.We can do it provided as
suppliers we achieve that Hall mark of crdibility- that position of
manufacturers of niche goods with International quality and
eco-compliances.Ofcourse it is not going to happen in one go.
But it should start and solidarity and collective bargaining must
be emphasized so that all will benefit. In real sense, you are
only making these Brands which earn more than 150-300%
profit, agree to shrink their profitability just by 5-10%.And
forsustainability of thebusiness they should be prepared to do it.
• What are the impediments in cost cutting? What do the
various reports say?
One of the reports by National Productivity council on
“productivity and competitiveness of Indian Textile and
Garment sector recommends that, in the case ofphysical
infrastructure, availability of power and road need to be
improved. As far as Government interface with
business/private sector is concerned, majority of the units
surveyed (68%) were not satisfied with interface. There is a
need to strengthen the availability of energy/power for the
manufacturing units since the power outages are quite
frequent. In view of such bottlenecks there is need for
developing dedicated/captive power generating sources
specifically for the major textile clusters”1.But small units
however, have to stop their operations for the period of the
power cut; as the small units can’t afford large gen-sets for
alternative power supply. They have toallocate a massive sum
for purchase of diesel (furnace oil) for their power generating
sets,which is costly as it attract Excise Duty/Custom Duty of
16%. To mitigate the powerproblem in the short term small
power loom units in a cluster can pool their resources
toestablish a captive power plant or common gen-set on a
shared basis and there is need for the Governmental support2.
• Sustainable Textile Production:
As we see, the Brands will alsodictate the terms on sustainable
Textile production where in ecology and social compliances will
become equally important as the economics of the textile
business operations anda number of these brands will seek
their suppliers to follow the tenets of sustainability. It is here the
survey done by U.S. Environmental Protection Agency on
Economic Impact Analysis of the Fabric and Textile Printing,
Coating, and Dyeinghas been a good example to quote with.
This survey indicates the level of these operations affect the
emission levels in the environment and what impact it will
have.After studying the baseline emissions and estimated costs
of complying with the environmental norms, it has been
concluded that not more than 1-3 % of the total sale value is
needed to incur as the cost of maintaining these compliances3.
Whatever is said and done, indeed sustainability measures will
surely increase the cost of production to some extent and
hence it is naturally expected that these Brands as well as the
government agencies make available some incentives for such
a valuable step. Our survey by the ICT students did reveal that
the normal customer of the Branded clothing is ready to pay a
little extra money, if they are sure that such a premium they are
COVERSTORY

paying for the respect for the environment andfor the people
who manufactured it.
The textile industry gets about 80% of its energy in the form of
heat. The energy costs vary from 5 to 17% of total
manufacturing costs according to the type of process involved.
The distribution of power and heat requirement in a
composite Mills can be seen in following two figures.
As far as Energy inputs are concerned in Textile sector, they are
very important as far as final costing is to be decided. Electrical
and heat energy form an important aspects of these energy
requirements.
There are anumber of various energy-efficiency
opportunities and if implemented, the costing can be greatly
brought down.However, due to lack of information or false
notion that such measures are expensive, SMEs do not pay
attention to them4.
It is important to know that energy saving is not always a rocket
science. Improving efficiency and saving money in textile
dyeing need not be expensive. Simple changes to procedures
and housekeeping can save considerable amounts of money
and thus enable one to reduce costs. It is ofcourse necessary
that you observe process inefficiencies and calculate the
financial losses from these inefficiencies and prepare a road
map to remedy the situation to improve your cost
competitiveness.Needless to mention it will also reduce
pollution and load on environment5.
It has been reported that a significant benefits would be
achieved byoperating the recovery plant in textile Industry and
reducing thefresh water up to 63.5%.This not only will reduce
stress on ground water reserve , but also the chemicals
discharged.Hence, sucha recovery and reuse in a textile
industry cantherefore be considered technically
andeconomically feasible6.
One of the reports on comprehensive energy audit
undertaken in 43 mills by SITRA revealed that the energy cost
of conversion in spinning operations is 10%of sales and it is 5
times their profitability. Hence, there is tremendous scope
insaving the energy in these units and thus increasing their
profitability by reducing their production cost .Potential saving
from energy was at about Rs. 200 per spindle per year which
is almost the same as the net profit margin a spinning mill can
earn under normal trading conditions. The payback period for
such measures is 1.5 years and thus such kind of applications
become essential in bringing down the cost of production for
competitiveness7.
Heat recovery is another area which is neglectedin process
houses. However, as per the BTRA report a serious thought
and a sincere approach to heat economy is surely going to
benefit theindustry by lowering the fuel bills and hence will add
to the profitability of the industry by reducing the cost of end
product. It is claimed that the rich benefits to the mills
participating in their Energy Audit Programmes have been
received8.
One of the reports from Harvard University
Professor9studying Tirupur Cluster indicates the deficiency in
the infrastructure of Tirupur and absence of domestic brand as
well as high value product manufacture with more customized
products of high quality rather than having volume based low
value products .It recommends the need of partnering with
training institutes to promote process and product designs.
For the government it recommends to upgrade power, port
and road infrastructure within and outside Tirupur. It needs to
develop integrated cluster facility for processing.
The phenomenal growth in Tirupur of 15% CAGR since 1990
and $ 2.5Bn Clothing export only from Tirupur in 2010
indicates its capacity and important role in growth of Textiles
and Clothing in Tamil Nadu. However, somewhere down the
line in this fast growth, environmental concerns were
neglected by the manufacturers as well as government
agencies till Supreme court came heavily against the polluting
Industries closing down many. Now slowly Tirupur is coming
back to the main stream scenario and hence the lesson has to
be learnt that while cost competitiveness pressures are always
going to be there, there is no short cut to ignore the planet and
people for making the profit, if we need to sustain in this
business.
• Concluding remarks:
While we look at conventional textile andgarment processing
applications, since cost competitiveness has become an
important issue,its high time we should also see some of the
important technologies in effluent treatment, recovery of heat
and chemicals, dyestuffs as well as recycling of water as these
will have an impact on reduction of final cost of production.
We know that Foam finishinghas been successfully tried and so
also synthetic thickeners in Textile printing. Some of the coating
technologies and also digital printing have tremendous scope in
increasing productivity, efficiency with least of impact on
environment. Super critical CO2
COVERSTORY

making possible waterless dyeing, transfer printing, plasma
application and nano as well as biotechnologies are gaining
increasing demand when we look at Textile and Garment
manufacture in a totally holistic way-where in production
activity is carried out with sustainability which respects people,
planet as well as profit.We may have to be innovative as well as
we have to follow lean management in production bringing
down wastages to a minimum so that while our costs are kept
low, value realization is of high order.We also need to look at
those product mixes where competition is low and
profitability is relatively high. Besides that we need to know
what best we can produce and those strengths of ours should
be harnessed always.
• Acknowledgements:
I acknowledge with thanks my Research students especially
Pawan, Dharmendra, Nikhil and Amol who gathered the
required references and the material to put in for this paper. I
also acknowledge with thanks those authorswhose names
could not be traced and whose documents are referred here.
• References:
1. National Productivity Council, New Delhi.
2. Assessing the Prospects for India’s Textile and Clothing
Sector , NCAER, 2009
3. Economic Impact Analysis of the Fabric and Textiles
Printing, Coating, and Dyeing Environmental Protection
Agency,USA .
4. Ali Hasanbeigi, Energy-Efficiency Improvement
Opportunities for the Textile Industry, (2010).
5. Alternative Production & Cost saving in Winch Dyeing
Department for International Development, UK.
6. Costing textile effluent recovery and reuse, Filtration
+Separtaion, June 2006.
7. K.R. Chandran and P. Muthukumaraswamy, SITRA
Energy Audit – Implementation Strategy in Textile Mills.
8. S.A.Tarabadkar and H.M. Sharma, Heat Economy in
Textile Mills, BTRA & FAITMA Seminar on Conservation
of Utilities in Indian Textile Industry, November 26,
2002.
9. Michael E. Porter , The Microeconomics of
Competitiveness,TIRPUR KNITWEAR CLUSTER , (
2011)
COVERSTORY
The banks continued to see rise in restructured advances
during H1FY14. Total restructured assets of the banks under
study increased to Rs.3.6 trillion as on September 30, 2013
from Rs.3.4 trillion as on March 31, 2013. The restructured
advances as a proportion of advances stood at 6.47% as
compared to 6.03% as on March 31, 2013 (March 31, 2012:
5.38%).
A study of the industry-wise distribution of the restructured
accounts for 10 banks1 revealed that Infrastructure, Power,
Iron & Steel, Textiles and Aviation industries accounted for
approximately 60% of the restructured assets outstanding as
on September 30, 2013 (March, 2013: 59%). Following table
gives the industry wise restructured assets outstanding.
An analysis of the progress report of the Corporate Debt
Restructuring (CDR) Cell during the period March, 2013 and
September, 2013 shows that the major sectors where
maximum cases of restructuring have been approved are iron
& steel, infrastructure, textiles and power. The following table
INDUSTRY AMOUNT ( Rs. Trillion) (% Share)
Infrastructure (including Power) 0.77 36.63
Tex les 0.19 9.24
Iron and Steel 0.18 8.54
Avia on 0.11 5.29
Total 1.26 59.71
Industry 31-Mar-13 % share 30-Jun-13 % share 30-Sep-13 % share
Iron & Steel 52,682 23.00 53,543 21.39 41,812 21.30
Infrastructure 21,912 9.60 34,676 13.85 35,543 18.11
Tex les 17,767 7.80 20,662 8.26 19,545 9.96
Power 18,460 8.10 18,460 7.38 17,225 8.78
Total 229,014 100.00 250,279 100.00 196,267 100.00
shows the amount approved under CDR for the top four
industries as on various dates and their percentage share in the
total amount approved for CDR.
Source: www.cdrindia.org
Note: These amounts do not account for the restructuring
done by banks on a bilateral level.
The total amount restructured under the CDR mechanism
increased to Rs.2.5 trillion by June, 2013 as compared to
Rs.2.3 trillion as on March, 2013. However, the amount of
restructured debt under CDR declined to Rs.1.9 trillion by
September, 2013 due to certain accounts exiting due to
successful performance in the CDR package and certain
accounts getting withdrawn on account of failure. The total
number cases declined from 401 as on March 31, 2013 to 261
as on September 30, 2013. The infrastructure sector saw
stress mainly during H1FY14 with the amount under CDR
increasing by 62% as on September 30, 2013 as compared to
March 31, 2013.
RISE IN RESTRUCTURED ASSETS
Source : Banking sector performance study – h1fy14 by CARE Rating Agency

Jan March 2014

Recommended

Recommended

More Related Content

What's hot

What's hot (20)

Similar to Jan March 2014

Similar to Jan March 2014 (20)

More from TEXTILE VALUE CHAIN

More from TEXTILE VALUE CHAIN (20)

Recently uploaded

Recently uploaded (20)

Jan March 2014