June 2016

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4Bedroom Curtains 4Cotton Curtains 4Table Cloth4Cotton
Product Category
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4 June 2016www.textilevaluechain.com
EDITORIAL
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When on the threshold of a New Year, everybody is interested to know how the New Year will turn out to be. The
cotton season starts on 1st October and ends on 30th September of the next year. Thus, cotton season 2016-2017 will
herald its arrival on 1st October 2016 and will end on 30th September 2017.
‘Cotton price is the function of cotton production and demand, which in turn depend upon opening stock, bump-
er monsoon, reliable seed and area under cotton.’ At the start of Agricultural year, the prediction was for a bumper
monsoon being 106% of the average of the Long-Term Period. This had naturally created an atmosphere of joy and
happiness. But the performance and prediction of monsoon in the last 2/3 days was not very satisfactory. First came
the report that monsoon has further delayed by 3/4 days. Concurrently, IMD (Indian Meteorological Department)
advised farmers to postpone sowing of seeds till the onset of monsoon. But the subsequent progress of the mon-
soon cleared the doubt harboured in the minds of people.
The weak point of the incoming cotton season is that opening stock for the season 2016-17 is 38 lakh bales, as per
the estimate of Cotton Advisory Board which met on 3rd November, 2015, against the opening stock of 52 lakh bales
for the cotton season 2015-16.
But there are other factors which will influence cotton prices. Because of sombre global economic scenario, ex-
ports of cotton textiles and ready-made garments may be weak, thus affecting the demand for cotton.
On the policy side, it is gratifying to note that Government is very much concerned about relatively high prices
of cotton seed and its reliability aspect. If the monsoon turns out to be kind, there will be no room for pessimism.
The real problem of the textile industry is the lack of efforts for unbiased projection of cotton production which
currently depends mostly on hearsay. Unless this basic problem faced in the past several decades is not corrected
immediately, the industry will keep on groping in the dark and the planners may not be able to make correct assess-
ment of the prevailing situation.
Government is very keen to develop Cotton Textile Industry in rural areas, which is obvious from the schemes
targeted in that direction.
All such efforts will drastically change the fortune of the textile industry.
Expected Scenario of Cotton Production and
Prices in the forthcoming new Cotton season
Shri V.Y. Tamhane
Editorial Advisor

EDITORIAL TEAM
Editor & Publisher
Ms. Jigna Shah
Editorial Advisor
Shri V.Y. Tamhane
Consulting Editor
Mr. Avinash Mayekar
Graphic Designer
Mr. Anant A. Jogale
Marketing & Advertising
Mr. Md. Tanweer
INDUSTRY
Mr. Devchand Chheda
City Editor - Vyapar ( Janmabhumi Group)
Mr. Manohar Samuel
President, Birla Cellulose, Grasim Industries
Dr. M. K. Talukdar
VP, Kusumgar Corporates
Mr. Shailendra Pandey
VP (Head – Sales and Marketing), Indian Rayon
Mr. Ajay Sharma
GM RSWM (LNJ Bhilwara Group)
EDUCATION / RESEARCH
Mr. B.V. Doctor
HOD knitting, SASMIRA
Dr. Ela Dedhia
Associate Professor, Nirmala Niketan College
Dr. Mangesh D. Teli
Professor, Dean ICT
Dr. S.K. Chattopadhyay
Principal Scientist & Head MPD
Dr. Rajan Nachane
Retired Scientist, CIRCOT
CONSULTANT / ASSOCIATION
Mr. Shivram Krishnan
Senior Textile Advisor
Mr. G. Benerjee
Management & Industrial Consultant
Mr. Uttam Jain
Director PDEXCIL; VP of Hindustan Chamber of Commerce
Mr. Shiv Kanodia
Sec General, Bharat Merchant Chamber
Mr. N.D. Mhatre
June 2016 ISSUE
CONTENT
Advertiser Index
NEWS
9- ATE & ARVIND
10- DANFOSS
COVER STORY: HOME TEXTILE trends
11- Market Trends by Mr. Avinash Mayekar
12- Home , Art & Smart by Mr. Vishnu Govind
14- Home Textile : An Eldorado by Mr. V.Y. Tamhane
15- Market Trends of Home textiles
ARTICLES
16- Create brands & not products : Emotional Connection to Cus-
tomer by Mr. Rushin Vadhani
17- Lines aligned to look fine by Professor from Punjab Agriculture
University
19- What is TPP? by Mr. Arvind Sinha
21- Catalyzing Technical textile business in India through Indig-
enous Machinery by Mr. B.S. Pancholi
MARKET REPORT
25- Yarn Report by YNFX
29- Cotton Report by Cotton GuruTM
30- Surat Report by TVC Reporter
34- Trend Forecast in Home Textiles
SHOW/ EVENT REPORT
27- SIMA TEXFAIR
28- ITAMMA
32- LIVA Confluence 2016
Back Page : Raymond
Back Inside : Liva
Front Inside : Raysil
Page 3: Citizen Synthetics
Page 5 : SGS Innovation
Page 7 : Luthra Pneumsys
Page 8 : Gartex 2016
Page 34 : Sanjay Plastic
Page 38 : RSWM

9June 2016 www.textilevaluechain.com
A.T.E. Enterprises Private Limited of In-
dia and Savio Macchine Tessili group from
Italy have entered into a strategic partner-
ship at parity position for sales & market-
ing of Automatic Winders, Two-For-One
Twisters (TFO), Continuous Yarn Shrinking
Machines, OE Rotor Spinning Machines in
India from 1st April 2016.
The Savio group for more than 100
years after its modest beginning in 1911 has
played major role in development of textile
industry worldwide and with its manufac-
turing facilities in Italy, India and China that
offers state of the art machines.
Savio India Ltd., the advanced TFO man-
ufacturing set up of Savio group in India,
will continue to provide and ensure state of
the art Customer Support and Spare Parts
Services.
The A.T.E. group, with its strong market-
ing network through 11 offices across India
and a knowledgeable sales and marketing
force, complements the competence of the
Savio group as Savio’s sales and marketing
partner in India. A.T.E. is in the unique posi-
tion of being the only company with a pres-
ence across the entire textile value chain
for textile machinery & accessories, utilities
and complete after sales service solutions
(for key segments). A.T.E. thus is the only
company with the capability of offering to
Indian customers a ‘one window solution’
from spinning to garment making.
The Savio group has taken a quantum
leap and cemented it’s technological trend
setter position with its new automatic
winder series EcoPulsarS, launched during
the recently held ITMA at Milan. Through
the new winder EcoPulsarS, Savio has intro-
duced an entirely new concept, which has a
capability of giving users up to 30% energy
savings and up to 10%, enhanced productiv-
ity. Savio’s well proven and the best selling
automatic winder model Polar is still the #1
winder in many world markets.
Savio is also a front runner with a wide
range of Two-For-One twisters diversified
for different market requirements. The
Savio twisting technology combined with
an ingenious machine de-
sign offers low investment
costs together with mini-
mum power consumption,
low maintenance times
and the lowest life-cycle
costs. With two mod-
els : the new generation
machine Sirius with an
Electronic Drive System
(EDS) and the traditional
twisting machine Cosmos,
Savio has been able to ad-
dress the different needs
of different segments of
the markets, offering long term benefits to
its customers through cost effectiveness,
energy saving and low investment cost.
The partnering of Savio with A.T.E., is
set to immensely benefit the Indian textile
industry, as the expertise from these two
leading groups, offer complete winding
and twisting solutions to the Indian cus-
tomers which will give them a sustainable
competitive advantage in their business
Savio and A.T.E. will soon be organising
customer days across India for presenting
the most advanced winding and twisting
technology solutions to the Indian custom-
ers.
A.T.E. ties-up with Savio Macchine Tessili group from Italy
NEWS
Arvind OG Nonwovens, a joint venture
between Arvind Ltd (India) and OG Corpora-
tion (Japan), today announced the launch
of five globally respected brands for Bag
House Filtration in India at Non-Woven Tech
Asia 2016 event in Mumbai.
“The five brands namely– Fiberlox, Duo-
tech, Checkstatic, Glasstech and Mircofelt
will make Arvind OG a player with largest
portfolio of world class products manufac-
tured in India for Bag House Filtration. The
technology and processes required to man-
ufacture these brands were an integral part
of acquisition of Andrew Industries”, said a
spokesperson from Arvind Limited.
AOG has installed custom-built machines
specifically designed to achieve Japanese
quality standards and capable of handling
various fibres such as M-Aramid, Homopoly-
mer Acrylic, Poly-phenelyene Sulfone (PPS),
Polyimide, Polypropylene and Polyester.
These are manufactured to deliver highest
global standards of quality.
Arvind OG Nonwovens Pvt. Ltd., inau-
gurated its manufacturing facilities near
Ahmedabad, Gujarat, on 31st May 2014. The
JV manufactures high quality Nonwoven
fabrics using Needle-punch technology for
Bag house filtration. The JV also has technol-
ogy alliance with Kureha Ltd of Japan.
About Arvind Ltd:
Arvind Limited is India’s largest textiles
& clothing conglomerate, having achieved a
turnover in excess of US$ 1.2 bn in FY2015-16.
About OG Corporation (Japan):
OG Corporation of Japan, established in
1923 and with a reported turnover of US$1.1
Bn in 2015, is a specialized trading company
that sells, exports, imports and manufac-
tures a variety of high value products in Ja-
pan and world-wide. They serve over 3,300
customers in Japan with strong established
bases in China, India and South East Asia
that continue to grow and expand rapidly in
North America and Europe as well as branch-
ing into adjacent businesses.
About Kureha Ltd.
Kureha Ltd, established in 1960, is a
leading Nonwoven fabrics manufacturer
of Japan. It is a group company of the Toy-
obo Group which is a US $3.4 Bn giant and
pioneer in the field of technical fibres and
fabrics. Kureha R&D aims to create new
generation of products with their unique
technologies and developmental power,
with the objective of producing high quality
products in shorter time with high customer
satisfaction.
Arvind OG Nonwovens launches five brands for bag house filtration

Danfoss launches “Energy Efficiency Yatra” to redefine industrial
motor efficiency in India
Aligned with objectives of initiatives
like the PAT scheme to reduce energy con-
sumption in energy intensive industries, this
yatra will showcase sustainable interven-
tions prompting industry leaders to take
the leap towards a greener and economical
future
New Delhi, 15 June 2016:Danfoss, India
a key player in the energy efficiency space
today launched its flagship campaign “Dan-
foss Energy Efficiency Yatra” highlighting
that a better tomorrow is driven by drives
in an effort to promote and educate indus-
trialists and policy makers on the need for
adoption of better standards ofindustrial
motors.Currently, with almost non-existent
regulations for motor standardization, the
industrial sector in the country is witnessing
an increase in energy intensity, weighing
more on the rising energy demand.
With the need for energy constantly on
therise,ithasbeenencouragingtonotethat
the government has been actively introduc-
ing schemes like PAT (Perform, Achieve and
Trade) to enhance cost effectiveness of im-
provements in energy efficiency in energy
intensive large industries and facilities like
aluminium, cement, chlor-alkali, fertilizers,
iron and steel pulp and paper, textiles and
thermal power plants.
While sectors like cement are ahead in
terms of Specific Energy Consumption (SEC)
as compared to global standards, there is
still scope for efficiency improvement in
sectors like paper and pulp, aluminium, iron
and steel.
An impressive market opportunity for
sustainable solutions has further renewed
interest for technologies that drive sustain-
ability. Industrial energy efficiency is esti-
mated to beRs. 34,000 crore investment op-
portunity with cross sectoral interventions
such as VFD, WHR accounting for 21% and
24% of the estimated investment potential
respectively.
“This initiative is primarily aimed at rais-
ing awareness on the need for stringent
regulations and standardisations that have
the potential to not just reduce overall car-
bon emissions from heavy industries but
also catalyse productivity and thus profit-
ability.Reports have suggested that energy
efficiency measures like equipment and ap-
pliance standards along with building per-
formance standards have the capacity to
reduce CO2 emission by half, which can go a
long way helping us reduce greenhouse gas
emissions. The IEA reports that targeted
energy efficiency measures would reduce
global energy-related emissions by 1.5 giga-
tons in 2020-which said Mr. Ravichandran
Purushothaman, President, Danfoss India.
Flagging off the initiative, Mr.Soren said,
“In India, industries consume nearly 42% en-
ergy of which manufacturing sector contrib-
utes more than 60% of consumption. Heavy
industries like metals, cement and pulp&
paper fertilizer are the major contributors
for this high energy consumption. We want
to tap this huge opportunity that we have
in heavy industries which are energy inten-
sive. With our established leadership in the
drives division and with an installed base of
18.5 Million drives, we believe by 2025 more
than 5 billion people worldwide will benefit
directly or indirectly by Danfoss Drives in
their everyday lives. We willalso be able to
save the equivalent of 60 hours of global
electrical energy consumption.”
The multi-city tour of Danfoss Drives
Energy Efficiency Yatra aims to empower in-
dustries to adopt brand new innovations in
energy efficient technology. Begin-
ning its journey in NCR Delhi, the
bus will cover 11000kms through
Ludhiana, Patnagar, Satna, Jam-
shedpur, Durgapur, Kolkata, Rour-
kela, Angul,Raigarh,Vizag,Guntur,
Hyderabad, Chennai, Pondicherry,
Cuddalore, Salem, Coimbatore,
Bellary, Gulbarga, Kolhapur, Pune,
Raigad, Nagpur, Indore, Vapi, Su-
rat, Ahmedabad and Jamnagar in a
span of four months.
About Danfoss India
Danfoss India is an industry leader fo-
cused on energy efficient solutions, is a
100-percent owned subsidiary of Danfoss
Group. Danfoss India serves a wide range of
industries that rely on Danfoss products for
like VLT® Drives, heating valves, controls &
solutions for refrigeration, air conditioning,
HVAC, district cooling and under floor heat-
ing applications. Danfoss engineers tech-
nologies that enable the world of tomorrow
to do more with less.
Established in 1998, Danfoss India is
headquartered in Oragadam Chennai. True
to its promise of energy efficiency, the 500
cr manufacturing facility at Danfoss’ Ora-
gadam campus is a LEED Platinum rated fa-
cility with an on ground solar installation
and has a focus on R&D and also houses
an application lab. The focus of this cen-
tre is to design and innovate products for
climate and energy for both India and out-
side market. Danfoss’ nation-wide sales and
support network comprises of 10 offices
and a strong network of channel partners
and employs over around 800* people. Mr.
Ravichandran Purushothaman is the Presi-
dent of Danfoss in India.
About Danfoss
Danfoss engineers technologies that
enable the world of tomorrow to do more
with less. We meet the growing need for in-
frastructure, food supply, energy efficiency
and climate-friendly solutions. Our prod-
ucts and services are used in areas such as
refrigeration, air conditioning, heating, mo-
tor control and mobile machinery. Our inno-
vative engineering dates back to 1933 and
today Danfoss is a world-leader, employ-
ing 24,000 employees and serving custom-
ers in more than 100 countries. We are still
privately held by the founding family. Read
more about us at www.danfoss.com
DANFOSS ENERGY EFFICIENCY
YATRA
Theyatra will cover
• 32 cities
• 11000 kms
• Sectors like metal, steel, ce-
ment, power, chemicals, mining, indus-
trial equipments manufacturing etc
The yatra will showcase tools that
can be employed by industries inorder to
achieve energy efficiency from the per-
spective of cost saving as well as reduced
carbon emissions.
PRODUCTS ON DISPLAY:
VLT DRIVES-FC51-MICRO, FC 102,
FC103, FC360, FC302, FC280, OGD
VACON-VACON 20, VACON100 FLOW,
VACON 100 HPD, VACON NXP, VACON
NXP, VACON 100X, VACON 20 COLD
NEWS

“Market trends in Home Textiles”
Home textiles reflects the
choiceof an individual. It helps in
setting internal environment of
house. When you have busy, hec-
tic day at the office, it is necessary
to have soothing and charming
environment at home. The home
furnishing plays major role in re-
laxing the mind which includes
cozy sofa, attractive curtains,
smooth and soft towel & last but
not the least, a very good bed.
Sound Sleep plays a vital role in good health and well-being
throughout the day. Sleep helps the brain work properly. Right kind
of bed is equally important to have sound sleep. Thus home textiles
directly affect human body & this is the reason, global awareness of
home textile products is increasing. Continuous research is done to
improve functional properties of home textile products consider-
ing the way it has shown its importance in human health. But, we
Indians hardly give importance to such products. Though, there is
slight awareness in metro cities in India but still it is negligible as
compared to western countries.
Home textile is one of the fastest growing categories in global
textile and apparel trade.Global home textile industry is estimated
at USD 63.13Bn in year 2015 and growing at a CAGR of 7%. The Indian
home textile market is estimated to reachUSD 4.20Bn by year 2016.
The industry is estimated to grow at a CAGR of 8%. Globally, US, EU
& Japan are major importers of home textiles whereas China, India
& Pakistan are major exporters of home textiles. The majority of
home textiles are produced in Asia. Japan, Australia, New Zealand
are largest consumer of home textiles.
European countries are one of the biggest markets for Home
Textiles.Total import in year 2013 stands at USD 10.43Bncontribut-
ing to 21% of total world’s import. Germany, UK & France are ma-
jorimporters. European countries majorly focus on the high-end of
the market, with more technically advanced and design-oriented
products, leading to a relatively high export value.
Home textiles are classified into five categories namely bed
linen, bath linen, table linen, kitchen linen & furnishing.
Global Home Textiles Exports & Imports – In Bn USD
Source: WTO, ITC & Suvin Analysis
Today, consumer is equally cautious about the functional prop-
erties of the product along with color, styles, texture, pattern &
fashion. Increasing awareness of health is also contributing to
the growth of home textile sector. Innovative techniques, innova-
tive products are coming up in the market & today’s consumer is
bold enough to try those products with all confidence. With higher
disposable income & rising retail culture, Indian customer taste is
evolving day by day. Old laggard approach is no more in existence
& this is all together a new business opportunity for entrepreneurs.
Global Bed Linen market share was USD10.82 Bn in year 2014.The
Indian market size of Bed Linen is estimated to reach USD 2.02 Bn
by 2016 and expected to grow at CAGR of 8 %. Hospitality sector is
one of the demand drivers in bed linen segment. Variety of innova-
tions is being done to improve customer’s sleeping experience. For
example, Westin’s heavenly bed is very popular. The bed is specially
designed of 10 layers considering human body structure. Antimicro-
bial treatments are applied to blankets, bed sheets & pillow covers
to keep it fresh, clean & comfortable after repeated washes.
Other innovative products like reversible sheets which can be
used from both sides , cancer causing formaldehyde free sheets,
sheets which are embedded with minerals in to core of the fibres
which help in recycling body energy, micro twill sheets giving soft-
er hand feel, sheets with various finishes like anti-bacterial condi-
tioned finish, bioneem-protection against dust mites, sleep fresh
finish, stress free finish, actiguard finish for dust mites protection,
sanitized finish for antimicrobial protection, sheets made up of vari-
ous special fibres like Tencel, Kanebo&Coolmax with inherent prop-
erties are gaining importance in the market.
The annual world demand for cotton terry towels is estimated
at 3 Mn. MT and growing @ 5 % p.a. while the current Indian market
size of towel is USD5.9 Mnand expected to grow at CAGR of 8%.
In terry towels, design& hand-feel has great importance as it
Shri Avinash Mayekar
MD, Suvin Advisor Pvt. Ltd.
COVER STORY

comes in intimate contact with body. Different blends of yarns,
fine counts are being used to achieve softer hand feel. Hollow
core yarn is used to impart softness which makes it loftier wash
after wash. Polyester slubs are also used to get softer hand-feels.
Various fibres having inherent functional properties are becoming
populare.g.eco-friendly recycled fibres having same look, touch &
feel as conventional fibres, fibres having antimicrobial properties,
light weight fibres for convenience during transportation, fibres
with flame retardant properties, water repellant fibres. These fi-
bres are used on various applications of home furnishes like table
cloths, kitchen cloths, curtains, upholstery fabrics.
Kitchen linen market size is estimated to reach to USD2.7 Mn
by year 2016 in India. Table & kitchen linen market is strongly fueled
by growing demands from western countries. Various products in
these categories include tablecloths, table runners, napkins, table
mats, aprons, gloves and mittens. Stain resistant and fire retardant
are some of the popular finishes in these categories.
The new trends are seen in home textiles where there is a possi-
bility of disposable home textiles produced on nonwoven technol-
ogy are likely to gain importance. This trend will be especially for
hygiene related home textiles used in hospitals, hotels, etc. Spun
lace nonwovens may replace this hygiene market segment totally
because of low operating costs as water is the media which is used
to bond the fibre web. The technology also facilitates embossed
designs and embossed name plates for branding purpose. This sec-
tor may bring revolution especially for disposable bed linens, table
covers, napkins and for some curtain cloth fabric.
Global trend is shifting towards organic products. Consumer is
giving preference to ecofriendly, natural products over convention-
al products; hence many Home Textile manufacturers are focusing
more on organic products.
E-commerce is showing tremendous growth into Indian mar-
ket. It is forecasted to grow at the CAGR of 75%. Indian customer
is now moving from electronicssegment towards textile & apparel
segments for online shopping. Home furnishing products will be
adopting E-commerce as selling medium in future due to ease of
selling & no challenge of size & fit.
Today customer is investing more time & money on his home
décor.In fact, many of innovative products are resulted from need
of today’s customers. This gives huge opportunity for Indian entre-
preneur to capitalize on up-coming trends on Home Textile market.
We have all the resources from raw material to work force. What
we lack is strategy and technology awareness. Investors can take
professional help from consulting firms having expertise & tech-
nical knowledge of up-coming technologies. Investors have to be
clear in their mind with a market entry strategy. With the profes-
sional help, they can even evaluate different business options &
select most suitable one.
It’s time to assess demand-supply gap in Home TextileIndustry
& choose a right path with highly professional strategy. With the
help of right consultants like us entrepreneurs can easily identify
global markets, upcoming developments & innovations & can fore-
cast market trends as a part of successful market strategy
Home – The Art and the Smart
Necessity is the mother of invention and shelter, along with
food and clothing, is a basic need for mankind. We need to protect
ourselves from the elements and this need has manifested itself in
the dwellings we built for ourselves, right from the early days of
civilization. The buildings we construct make us feel safe and are
always there for us when we need them. Architecture in its most
basic of formsis therefore, a very old field of knowledge. Over the
years, as mankind made progress with time, architecture also kept
on evolving continuously. Different parts of the world had different
architectural styles and represented the cultures that were preva-
lent in their respective geographies at different points in time.
Today, in the second decade of the 21st century, we are in a
world that is more connected than ever before. We travel a lot
more to different countries and get exposed to the ways of life
there; as a result what we have today is a situation where we see
around us changes that are all coming out of global trends, in terms
of living habits, where the common factors in theelements of differ-
ent regions come together and represent a direction in which we
are moving towards, as a race.
Fair to say, today the pace of life in urban India is quite high.
In this materialistic world we are all in pursuit of our dreams, to
attain success, which could mean different things to different peo-
ple, whether it is expressed in terms of financial net worth, or cor-
porate positions, or even your span of control. The common thing
for everyone is the place where you come back to after your daily
grind- where you recharge the batteries, yours as well as those of
all the electronic gadgets you carry with yourself, and reflect on the
proceedings of your day, and catch up with your family and spend
quality time with them. Your home is such an integral part of your
daily life.
Let me ruminate over the early days of my corporate career. I
started my career with an MNC in the food space. We used to deal
with indulgence products and had a few household names with us,
about which I am not getting into specifics at this point of time.
These products were bought by customers from regular retailers
and just consumed, without being flaunted. The consumer is, to a
certain extent, not meant to be seen using them- these productsdo
not define the user’s personality. After a few years, I joined the
apparel industry, again in a company that had a few well-known
brands. While business processes differ from industry to industry,
there was one word, that as a marketing manager I started hearing
lot more frequently in my new job– Lifestyle. Over the years the
concept of marketing your brand as a lifestyle brand became so
ingrained in my way of thinking that it became second nature. From
apparel to fashion to lifestyle, is a laddering that brands in different
stages of evolution would go through.
Shri Vishnu Govind
Brand Consultant & Start up mentor
Founder -Add Velorem consulting
COVER STORY

Well, it is clearly established nowadays that apparel is a life-
style-oriented category. As a consumer, you are seen using those
products and they define the kind of person you are, your likes and
dislikes, the places you go to and the kind of people you hang out
with. Increasingly, I have been noticing more and more product
categories adopting the lifestyle route to advertise their products.
Real estate, for instance, is one space whereaspiration value is used
in a big way to sell the property.
That real estate should be seen as and treated like a lifestyle
category is quite logical too, for your home is the place where you
lead your real life. Doesn’t your home tell a whole lot of things
about yourself? Talking of home and about product categories that
describe it, is it possible to restrict our discussion to just the house
and its construction? Our home is made of lot more right? Other-
wise the interiors of all the flats in a certain apartment complex will
look the same, or at least have the same character; which is certain-
ly not the case. Of course, a home is about the people who live in it,
but right now we are talking about aspects which create the look
and feel of the home, like furniture, soft furnishing material, wall
decorations, the choice of white goods and other electronic appli-
ances- all those elements that count very significantly in converting
your vision for your own home into a reality. Hence, isn’t it fair to
say that home décor is also a lifestyle category? The fact, however,
is that it is not quite at the same stage of evolution as a business
category as apparel is in our country.
In the business of fashion, in India, brands started mushroom-
ing a few decades ago. Over time more and more of them started
coming up and way back in the 1980s there were at least couple
of aspirational labels in India, in menswear. The 90s saw the emer-
gence of quite a few brands that clearly came up as leaders in their
segments.Womenswear, in the meanwhile, also started seeing the
participation of branded players. We know how in recent years for-
eign brands have raised the bar in the market by catering to the
needs of the Indian consumers with rising disposable incomes.
Brand play, in soft furnishing, has been to a lower extent in the
same period of time. Yes, even in this space there has been house-
hold names which set the standards in the category; the point be-
ing made here is that the level of clutter is far lower. The brands
that are established in this space have also not been able to scale
up their businesses like some groups in readymade business have
been able to. It is a fact that the volume of purchases per consumer
or per household is much higher in the case of apparel.
Given that your home is what gives the strongest impression
of yourself, it is important that you curate it with choices that de-
fine you and the things you appreciate. The well-aware customer
of today wants to have products that are up to speed in terms of
latest trends. For instance, one trend that is coming up in forecasts
for 2016 is about the well-travelled person’s collection cabinet that
represents an appreciation for crafts and culture in different parts
of the world through an eclectic mix of furnishing and home dé-
cor items. The modern home is also a place where classic looks are
recreated with a more contemporary treatment. In this busy world
where there is no time to pause and look back at times gone by;
these inspirations evoke a strong sense of nostalgia.
Color trends keep changing from time to time and find ramifica-
tions in different product categories that form important parts of
your home. In the market for home décor products, bold and high
saturation colors, which were once reserved for accent purposes,
will find their way into regular household products. Black and White
will also continue to make strong presence with unique interplays
giving simple as well as complex patterns. Metallic accents on them
will provide the necessary bling and fashion quotient.
When we talk of trends, the role of technology cannot be em-
phasized enough. With improved connectivity and increasing com-
fort levels with technology products, we will soon find ‘Internet of
Things’ (IoT) products reaching more and more Indian households.
Security and convenience are two major needs in the urban Indian
societies and there are eco-systems coming up around fulfillment
of these needs. These smart devices are products that help you
keep an eye on your own house while you are away, they use the
power of the internet and work in sync with your mobile phone
and, well, make you even more dependent on your phone! Because
of the strong benefits they come with, they are here to stay for the
long run. Smart Homes, as such IoT connected homes are called,
are high on automation, and certainly are a thing for the future. We
are, in fact, in the early stages of IoT consumer goods revolution as
far as home automation is concerned.
There is no place like home. It is the place you come back to af-
ter your battles for the day, where you spend time with the people
you are closest to. Your home is the place where relationships are
built, where dreams are woven, where you look forward to the fu-
ture as a family. Your home says more about you than your clothes
do or your resume does; it therefore correlates highly with your
aspirations and lifestyle.
Home is where the heart is, so is the art that defines the look of
it, and so are the devices that make it Smart.
y The GDP growth in January –March 2016 as scaled to 7.9 percent, justifying the claim of fast growing economy of India.
y In 2015-16, the economy grew at 7.6 per cent.
y All this bodes well for 2016-17, when the growth rate is expected to touch 8 per cent.
Revision in Service Tax
With the introduction of Krishi Kalyancess of 0.5 per cent, service tax with effect from 1-6-2016 is 15 per cent. Disclosure of black money
Tax evaders get an opportunity to come clean by paying tax, penalty and surcharge of 45% of undisclosed income.
Bumper Rains
Good news for manufacturing and marketing staff is the assurance given publicly by the Indian Metrological Department that condi-
tions are congenial for early onset of the monsoon and good showers are expected in the second half of June. Quantitatively monsoon
rains are projected to be 106 per cent of the long period average.
Aide Memoire
COVER STORY

[ by V.Y.Tamhane *]
It is a general desire of every person to lead a life of comfort
and happiness. Every person also desires that his residence should
be well-appointed exuding a feeling of exuberance and satisfac-
tion. Naturally people are by and large great choosy about home
textiles.
Home textiles normally covers items like bed sheets, bed
spreads, covers for comforters, bed linen, towels, napkins, furnish-
ings, Pillow covers, wall hangings etc.
Home textiles sell on colours, designs, weaves, novelty and in-
novation. Since textile fashion changes fast, people are always in
search of new, lovely and refreshing colour combinations, designs,
weaves and novelty.
India is best suited for buying of home textiles where the or-
der size is relatively small with vast scope for display of talent and
imagination in the field of colour combination, design, weave etc.
With the installation of new production and processing machinery,
the international retailers count on India to supply the best wares
for leading marketing chains, malls and prestigious stores.
Production.
Separate figures for all items which are classified as home tex-
tiles are not available, yet the following data give the extent of pro-
gress made by India in the realm of home textiles:
Exports
Figures of export of Home Textiles are not readily available.
What is available are figures of export of made-ups, which practi-
cally covers all items of Home Textile plus a few other items, which
may not be classified as Home Textiles. However, the figures do
give a fairly representative picture of export of home textiles.
The table below
gives export of home textiles to major importing countries:
Export performance in 2015-16 was marginally down by 1.2 per
cent over 2014-15. It is largely because of sombre global situation
and the performance should not be looked down upon. In fact, it is
much better compared to export of textiles and nothing.
Of the 15 destinations, 10 have reported a decline ranging from
1 per cent to 14 per cent. Destinations which reported increase in
exports were the USA, Australia, Spain, South Africa and UAE. If
efforts are made to recapture international markets at least to the
level which is the best in any one of the three years of 2013-14, 2014-
15 and 2015-16, it is possible to exceed the US $ 5 billion mark and
even more if growth is recorded over the best exporting year in the
three years of 2013-14, 2014-15 and 2015-16.
From the present reckoning, it appears that India will retain its
dominance in home textiles for a long time to come.
HOME TEXTILES- An ELDORADO.
ITEM 2010 2011 2012
Million
Meters
Numbers
in
Million
Million
Meters
Numbers
in
Million
Million
Meters
Numbers
in
Million
Chaddar 343 153 358 159 373 166
Bed sheets 439 195 466 207 490 218
Towels 697 465 742 495 785 585
Terry towels 25 17 27 18 27 18
Blankets 3 1 4 1 4 1
Furnishings 161 N.A 172 N.A 186 N.A
Source: GTA/Ministry of Commerce
COVER STORY
Global Home Textiles Market: Trends and Opportunities
Presentation by Ms. Ratna S. Handayani (Euromonitor Interna-
tional) In her presentation Ms. Handayani provided the Committee
with very interesting and informative data and insights about the
global home textile markets. It was most interesting to see that
the global home textiles market has recorded a relatively strong
growth since 2009. In USD the retail value increased from just over
USD 85 billion to just below USD 105 billion in 2013. The annual
growth rate was well above 4% per annum. Growth was especially
strong in China where the Combined Average Growth Rate (CAGR)
from 2008-2013 was almost 14%. Also, other countries like India, Tur-
key and Russia recorded strong growth rates between 5 and 8%.

COVER STORY
With a share of approx. 25% bed textiles are still by far the most
important category within home textiles followed by bath textiles
(15%), rugs (10%), living room textiles (8%) and kitchen & dining tex-
tiles (7%).
In advanced economies the main drivers of this growth are a
tendency towards smaller households, stronger demand for more
comfort, added value and convenience for use. In emerging coun-
tries the drivers are an increase in the number of new homes for
a rising middle class who prefer affordable prices and convenient
shopping opportunities.
Manufacturers of textiles are successfully attracting the atten-
tion of consumers by applying
innovative technologies and using additional fibres/materials.
Looking at the retail channels it is interesting to note that spe-
cialist retailers still dominate the retail
landscape with almost 40% and that both grocery retailers and
sales through the internet have
increased between 2008 and 2013.
Looking at the period 2013-2018 Ms. Handayani presented esti-
mates by Euromonitor that bed textiles will remain the dominant
segment (CAGR of 2.2%) but that also bath and living room textiles
will also grow strongly by 2.3% and 2.2%, respectively. This growth
will come from China’s expanding middle class, higher online sales
(convenience) and more added-value products (comfort).
Despite China’s very strong growth rate and high absolute re-
tail value it is important to note that China’s per capita consump-
tion of home textiles is still only one third of the US. The future
potential in China and other emerging economies, especially India,
is enormous.
tiles (7%).
will come from China’s expanding middle class, higher online sales
IKEA
Retail, Distribution
and Production

Create Brands & not Products – Emotional Connect to Customers!
A lot of market research goes in the entire product life cycle
of the products. Market research is one of the most important
marketing activities. Products are introduced depending on the
taste, preference and keeping the price point in mind. Three P’s –
Popularity, Positioning and Pricing of the product matters in the
market. Thus, consumer buying behavior, purchase pattern and
complex buyer behavior play a key role in deciding on the lines of
introducing products/entering a target market.
The customers are more influenced by emotion centered mar-
keting strategies than logic & fact based marketing strategies when
it comes to selecting specific products like of personal use , lifestyle
products & high value brands.Although consumers are not going
to strictly be influenced by emotional aspects over logical aspects
,the goal is to prove that emotional aspects are considered before
logical aspects. Consumers, at times, appear to be more concerned
with how the product looks, feels & appears to other .Its like a
woman wears a beautiful dress & she receives compliments for self
!It makes her emotionally happy & feel good. She believes in brand
she is wearing. The logical factors only comes into the consumer’s
mind after more superficial characteristics are satisfied.
Various marketing strategies which will enable marketer to
launch , market & brand products to segmented markets to target
customers. Rational Vs Emotional Consumer Behavior :
A) Marketing Mix Strategy : Features & Objectives
1. It determines where the company should place its product, how
to promote the product, how the product can be marketed it-
self & how to price the product effectively
2. Gives importance either on product benefits, what value it has
for customers or how it is different from a competing brand or
competition
3. The distribution & pricing objectives would depend on the tar-
get segment
4. The promotional medium would also depend on the tar-
get segment & positioning but the basic mediums are
T.V,radio,billboards,magazines & internet (social media)
5. The strategy is
based on very logical &
factual elements which
has little to do with con-
sumer emotions.
B) Porter’s Theory of
Generic Strategies : Fea-
tures & Objectives
*Source: Google Im-
age
1. Overall Cost leadership – Achieve an overall cost leadership
in an industry through a set of functional policies aimed at
this basic objective It requires aggressive construction of effi-
cient-scale facilities,vigorous pursuit for cost reductions from
experience,tight cost & overhead control,avoidance of marginal
customer accounts & cost minimization
2. Differentiation – Differentiates the product or service in order
to create something that is perceived industry wide as being
unique or innovative.This strategy can take many forms & ide-
ally the firm should differentiate itself along several dimensions.
3. Focus – Focus on a particular buyer group, segment of the prod-
uct line or demographics. The entire focus is built around serving
a particular target segment very well & each functional policy is
developed with this in mind. The firm is thus able to serve its nar-
row target more effectively or efficiently than competitors who are
competing more broadly.
C) Experiential : Features & Objectives:
1. Focuses valuable deal on how customer experiences a product
& eventually chooses from competition
2. The consumption situation is examined to discover what the
meaning of these situations are for consumers & how important
they are for them
3. Customers are seen as emotional as well as rational beings by
nature which means that more emphasis will be put on enter-
taining ,stimulating & emotionally affecting the customer
4. Methodologies of an experiential marketer are very diverse &
there are a lot of various ways that this type of marketer can get
their research
D) Sensory :Features & Objectives
1. Appeals of five senses with overall purpose to give customer ex-
citement & satisfaction through sensory stimulation
2. Overall goal is to get customer completely immersed with the
product so when the customer thinks of the product will be re-
minded of how senses reacted
3. Differentiator – Stimulates & creates new feelings & emotions
for customer because product is presented in new & innovative
way.
4. Motivator – Motivate customers to try new products by pre-
ciselyentice them in through a perfect amount of stimulation so
that they feel that this new product is exactly right for them for
consumption & experience its benefits.
5. Value provider – Needs to be a sense of value perceived by the
customers & that the product is giving the customers & that the
product is giving the customer a unique value
E) Feel (Emotional/Experience centered) : Features & Objectives
Shri Rushin H.Vadhani
AGM – Market Research & Product Development
AYM Syntex Limited (Formely Welspun Syntex Ltd)
BRAND FOCUS

1. Causes consumer to have effective experience linked to the
brands within inner feelings & emotions
2. Works best when there are strong emotions linked during con-
sumption or use of the product which can range from feelings of
anger or excitement
3. Tries to attach specific emotions to the brand so consumer can
relate to & connection with it
4. Contains a great deal of emotions in the advertisements to cre-
ate & dredge up emotions within customer to try to connect
them to the products
5. Works best with more complex products but can work with low
involvement products with a lot of customer interaction prior to
the purchase
6. Hard to see if it works because most of the analysis needs to be
done during consumption stage of purchase cycle & normally
this occurs once the customer is at leisure
The first strategy discussed is the marketing mix strategy which
is essentially traditional approach. It emphasizes elements of par-
ticular product, price, promotion & distribution. Generally, the firm
does very traditional & logic based elements for the strategy such
as differentiating it from other brands, pushing the products quality
characteristics or positioning based on how it is built.
Eg. FabIndia & Khadi products
The next strategy is based on combination of Michael Porter
Model strategies of cost leadership, differentiation & focus. The
strategy is based on efficient cost it has over other companies, how
the firm can differentiate its products from other products & focus-
ing on particular segment to fully concentrate on serving particular
one segment.
Eg- Ikea &Walmart
Experiential marketing strategy focuses on how the consumer
experiences the product & how consumer encounters it. The emo-
tions of consumer are very important to this approach since the
firm wants to know exactly how the consumer feels about the
product in every aspect.
Eg- Apparel Designer labels
The sensory strategy is centered in the five senses & how con-
sumer reacts to product. It meant to differentiate the product to
create new feelings & emotions, to motivate the consumers to try
new things by focusing on their emotions & give the product value
which also makes it unique.
Eg- Levis is iconic brand for denim but creates a different expe-
rience with its new line of creations –theme base
The feel marketing strategy tries to create an effective experi-
ence that would link the consumer’s emotions to the brand. The
overall goal is to attach specific emotions to the brand so the cus-
tomer can relate to it & connect.
Eg – Brands like Louis Vuitton & Hermes connect to customers
more emotionally by enhancing overall experience. Its class apart .
The above marketing strategies needs to be adopted judicious-
ly as per market dynamics & positioning strategies. A well crafted
strategies & timely execution will surely assure good sales & brand-
ing for company .Connect to customers emotionally & win their
trust, you will have a loyal customer for lifetime!
References :
1) Positioning-The battle for your mind –Al Ries& Jack Trout
2) Buy.ology –Martin Lindstrom
3) Consumer behavior – M S Raju& Dominique Xardel
4) Consumer behavior strategy – Praveen Sahu
Lines aligned to look fine By: Vaishally Verma and Prerna Kapila
PUNJAB AGRICULTURAL UNIVERSITY
In this era of style and execution everyone wants to present
themselves as perfect to the world. Confidence is the main factor
required to win the game. But many a times is what we love the
most about a dress won’t suit and look best on our built as our
body is changing throughout the years, because we put on weight
or lose weight that may lead to changein our body shape. An un-
desirable body shape will act as confidence reducing agent. But
today is the world where every problem is born with its solution.
Improper body shapes can be shown as perfect bodies by creating
optical illusions for viewers and will always make you look and feel
the best no matter the occasion and age. Therefore our dressstyle
will change in regards how to create visual balance in our body sil-
houette.
Lines:as optical illusion
Optical illusions are best created by different types of lines. The
amazing thing is that a bulgy part of the body can be hidden with
silhouettes and heaviness can be shown on some parts by adding
designer lines in the form of pleats, tucks,seams and necklines. .
Physiologically, lines make the eyes twist and control our brain in
such a way that our eyes follow and fix on the design. When lines
come together (converge), the eyes follow them to the point at
which they meet and become a focal point making that part of your
body look smaller. Conversely, when lines move away (diverge)
from each other, the eyes follow them to the end, which become
a focal point, and make you look wider. So the idea is to have lines
come together or move away from each other to that point on
your body that you either want to look smaller or wide. Thick line
conveys strength and alertness while thin line implies firmness and
stability in one’s character. There are an infinite number of physi-
cal features and each person has their own unique combination of
these.
Types of lines
The illusion of balance and proportion can be created with basic
knowledge of some important style lines.The lines are classified as
Structural or Designer or Printed.
• Structural lines are the silhouettes that provide the outline and
basic structure to the dress. For example: A- line, sheath, empire
etc.
• Designer Lines not only adds beauty and details in the dress but
also their placement and types allows a person to emphasize on
desired part or hide the bulgy part. It is the design added to the
structure of dress.E.g.; tucks, gathers, pleats, princess seams or
panels, hem lines etc.
• Printed Linesare referred to the prints of fabric that symbolizes
many things and helps to look lean, heavy, long or short. These
are of different types like vertical lines, horizontal lines, diagonal
lines, curved lines etc.
Vertical lines give the impression of height and slimness when
BRAND FOCUS

repeated at equal intervals by leading the eyes from top to bot-
tom.Vertical lines close together will make you thinner while two
vertical lines far apart will make you look wider.Avoid placing verti-
cal lines at unflattering points. E.g. bigger hips and/or thighs- never
a good option for pears. Apples and women with fuller tummies
should stay away from any detail that adds more volume or brings
the wrong attention to this area.Vertical lines include pressed
pleats, vertical tucks, buttoned front closures, V-necklines and ver-
tical visible seams, such as a princess seam.
Although vertical lines in clothing may be created by stripes,
vertical lines can also be created by seam lines,panels, hemlines,
pleats, tucks etc. in clothing that run up and down.
Individual height, arm and leg length must be strong considera-
tions in selecting the location of your hemlines and lengths.
When wearing striped clothing, take into consideration that
stripes that are too wide may not be in proportion with a petite
frame. Also, too many stripes may appear too overwhelming for
petites. You wouldn’t want to wear a striped blouse with striped
pants, for example. However, a striped dress, if the style is right
for your body type, may work very well. Suits in neutral colors with
pinstripes can be good investment pieces because you can wear
the suit pieces either together or as separates to expand your work
wardrobe.
Horizontal linestend to broaden and shorten the figure by em-
phasizing width. They divide height, especially when more than
one line is used at a time.Avoid placing horizontals at unflattering
points e.g. bigger bust, fuller tummy and thighs or the wrong sort
of attention can be drawn to this part of the body.They are great
for pears, women with a long waist and those who are flat chested.
They will shorten a longer waist, add volume to the top for pears
and create curves for flat chested women.Styles that accent the
horizontal line are: yokes, wide waistbands, extended shoulders,
bateau necklines dropped and empire waistlines.
The only exception might be when the horizontal stripes are
confined to a small area on a garment and are framed on each
side by either solid color or vertical stripes. Example, a camisole
with horizontal stripes might be worn under a solid colored V-
neck sweater. Although very slender runway models and very tall
women can often get away with wearing horizontal stripes, short
women will look better in clothing that emphasizes vertical line.
A Diagonal Linecan have two effects, depending on whether
it is at a more vertical or horizontal angle.Eyes always move from
the upper to the lower end of a diagonal line.A shorter diagonal
(more horizontal) will cause the eye to move quickly from one end
of the line to the other, creating an illusion of width.On the other
hand, the longer diagonal (more vertical) will lead the eye more
slowly, creating a longer, thinner appearance.Remember, for the
most pleasing results, the diagonal should follow the same direc-
tion the eyes move: from left to right, top to bottom.The rules are
the same as for horizontals and verticals in regards to who should
avoid what. Also women with a short waist or women with an un-
balanced body shape need to be very cautious of wearing this de-
sign line.
Diagonal lines can also help create a flattering fashion illusion,
although usually it’s a softer, curvier feel, which can be very effec-
tive, depending on the style of the garment. Chevron stripes work
well because they create a series of flattering V-shapes, which
makes petites look longer and leaner.
Curved Lines: it produces the same effect as straight line of sim-
ilar placement. Curves add beauty to the garment and the tailor’s
style like frills, flounces. The visual impact is softer and more grace-
ful. Curved lines can be used to re-emphasize or define your figure
because the female body is naturally curved. Often a less desirable
straight line can be modified into a more appealing curved line. Pro-
duce the same illusion as straight lines; however, curves are more
flattering in clothing. The curved line used in the bodice seam of
front closures creates the illusion of softness, while a horizontal or
vertical line is more pronounced.
These are not suggested to use in men’s wear as it is more femi-
nine and it shows gentleness and smoothness.
Zigzag Lines: This is a mixture of different emotions such as er-
ratic, intense, abrupt, fun, busy, Confusing and diverse. Visually it is
the eye catching nut and the person’s character cannot be defined
as zigzags create confusions in one at the sight of it. These lines are
perfectly creates illusion for hour glass figure.
Perfect dress on body contributes to quality of life and pleas-
ure and satisfaction from human sensation through experience of
sight. Fashion and style will allow for flexibility and creativity .There
is a unique method of looking for lines that will create balance and
harmony in your overall personality. Creation of illusion to gain per-
fect dress fit for all the body types to look smart with the use of dif-
ferent lines assembles the happiness and confidence of the wearer
to execute its perfection to the world and go ahead to enhance its
ambitions.
References
www.joyofclothes.com
https://googleweblight.com
FASHION FOCUS
Experience life in all possible ways -- good-bad, bitter-sweet, dark-light,
summer-winter. Experience all the dualities.
Don’t be afraid of experience, because the more experience you have, the more
mature you become.
― Osho
“
”

What is TPP?
The Trans-Pacific Partnership (TPP) is a secretive, multinational
trade agreement that threatens to extend restrictive intellectual
property (IP) laws across the globe and rewrite international rules
on its enforcement.
What is TPP(The Trans-Pacific Partnership) and why does it
matter?
The Trans-Pacific Partnership (TPP) is one of the most ambitious
free trade agreements ever attempted.
Its supporters have billed it as a pathway to unlock future
growth of the countries involved in the pact.
The critics have been equally vociferous, not least because of
the secrecy surrounding the negotiations of the agreement.
But despite the criticism, the countries involved have been
pushing for a deal to be reached soon and they are confident that
even more economies will want to join the pact in the coming years.
y So what exactly is the TPP?
It is a proposed free trade deal currently being negotiated be-
tween 11 countries.
These are Australia, Brunei Darussalam, Canada, Chile, Malaysia,
Mexico, New Zealand, Peru, United States, Singapore and Vietnam.
The pact is aimed at deepening economic ties between these
nations.
It is expected to substantially reduce tariffs, and even eliminate
them in some cases, between member countries and help open up
trade in goods and services.
It is also expected to boost investment flows between the
countries and further boost their economic growth.
The member countries are also looking to foster a closer rela-
tionship on economic policies and regulatory issues.
y What is the foundation of the TPP?
The 11 nations involved are looking to build up on a trade agree-
ment that was originally signed between Brunei Darussalam, Chile,
New Zealand and Singapore.
That agreement was called the Trans-Pacific Strategic Econom-
ic Partnership, or the P4, and came into effect in 2006.
It resulted in most tariffs on goods traded between these coun-
tries being removed immediately, with an agreement to gradually
phase out remaining tariffs.
They also agreed to open government procurement contracts
to businesses operating in any of the four countries.
The members of the P4 also said they will co-operate on issues
such as customs procedures, labour practices, intellectual property
and competition policies.
y Why does TPP matter?
Well, it’s all about numbers.
The 11 countries that are currently part of the negotiations are
all members of the Asia-Pacific Economic Co-operation (Apec).
They have a combined population of more than 650 million
people. A free trade agreement could turn this into a potential sin-
gle market for many businesses.
The average per capita income in the participating countries
was $31,491 in 2011 and their combined gross domestic product
(GDP) stood at more than $20 trillion.
One cannot ignore the fact that the initiative is being led by the
US, the world’s biggest economy and biggest trading nation, and
one that sees Asia-Pacific as key to its future growth.
Some analysts have even suggested that the US may be trying
to use the TPP as a means to undermine China’s growing economic
might in the region.
Many believe that other members of the Apec bloc may also
join the agreement in the coming years, making it an even more
important pact.
In all, 21 Apec countries account for about 44% of global trade.
They also make up some 40% of the world’s population.
y What is the status of the negotiations?
There are various dates during which talks were held at differ-
ent levels.
However, it is safe to say that real negotiations of an expended
treaty started only in 2010.
Since then, delegates and trade representatives have met for
16 rounds of discussion, focusing on a range of issues.
According to the US Trade Representative’s (USTR) office, at
the latest round of discussions held in Singapore this month, del-
egates “succeeded in finding
solutions” to many issues in areas such as customs, telecom-
munications and regulatory coherence.
However, the USTR said that there are still challenging issues
that need to be agreed on, including those related to intellectual
property, competition and environment. But there has been an in-
creased push, not least from the US President Barack Obama, to
finalise the pact soon. The next round of TPP negotiations will be
held in Lima, Peru, from 15 till 24 May.
y Is there any criticism of the deal?
Yes, there is and it is on various fronts.
Like many other free trade agreements, there are fears over
the impact TPP may have on certain products and services in mem-
ber countries.
Some campaign groups have raised concerns about the impact
such a wide-ranging agreement may have on intellectual property
laws and patent enforcement.
The fear the deal may extend the scope of patents in sectors
such a medicine and prevent the distribution of generic drugs.
Meanwhile Japan, which has expressed an interest to join the
negotiations, has raised concerns about the agreement impacting
its agriculture sector.
But the biggest criticism has been of what the campaigners al-
lege to be secretive negotiations.
They say that the delegates have not been forthcoming about
details of the issues that they have been discussing, and what the
scope of agreement in those areas is likely to be, and how it will
impact trade.
Last year, a group of lawyers even sent a letter to Ron Kirk, the
US Trade Representative, to express what they called “profound
concern and disappointment at the lack of public participation,
transparency and open government processes in the negotiation
of the intellectual property chapter of the TPP”.
However, some analysts say the reason why the negotiations
Mr. Arvind Sinha
CEO & Chief Advisor
Business Advisors Group
E:lionasinha@gmail.com
GLOBAL FOCUS

have not been made public is because there is no formal agreement
on them as yet.
They also point out that free trade agreements generally at-
tract a lot of criticism from campaign groups, and that in this case
the delegates may be wanting to keep the discussions under wraps
to avoid any pressure from such groups.
y Who benefits from Trans-Pacific Partnership?
A new free trade agreement that will eventually cover over 40%
of global trade is being hailed as one of the most ambitious plans in
the Asia-Pacific region.
Eleven Asian nations have signed up to take part in what is
called the Trans-Pacific Partnership (TPP).
But what do participants and non-participants of the TPP want
from the deal?
Michelle Fleury gives the view from the US, which is leading ne-
gotiations, and Lucy Williamson reports from South Korea, which
has so far resisted getting involved.
y Is Japan set to join the Trans-Pacific Partnership
A new free trade agreement that will eventually cover over 40%
of global trade is being hailed as one of the most ambitious plans in
the Asia-Pacific region.
Eleven Asian nations have signed up to take part in what is
called the Trans-Pacific Partnership.
Japan is the latest country to announce that it is thinking about
joining those countries already at the negotiation table.
However, it is not an easy decision for the third largest econo-
my in the world.
There has been serious opposition from farmers who argue
they’re livelihood will suffer.
Rupert Wingfield-Hayes reports from Tokyo.
y Obama outlines pan-Pacific trade plan at Apec summit
US President Barack Obama has announced the broad outlines of
a plan to create a trans-Pacific free trade zone at an annual region-
al summit in Hawaii.
“I’m confident we can get this done,” Mr Obama said at the
Asia-Pacific Economic Co-operation (Apec) talks.
Nine Apec nations are involved in the Trans-Pacific Partnership
(TPP), but China has so far not expressed interest in joining the
talks.
In all, 21 Apec countries account for about 44% of global trade.
They also make up some 40% of the world’s population.
Speaking in Honolulu on Saturday, Mr Obama said: “Together
we can boost exports and create more goods available for our
consumers, create new jobs. Compete, win in the markets of the
future.”
y Iran response
Describing the region as an engine for growth, he expressed
hopes that the TPP deal could be finalised as early as next year.
The US leader also said the TPP could serve as a model for other
trade pacts. He did not provide further details about the plan.
Mr Obama had separate meetings with the Chinese and Russian
Presidents, on the sidelines of the Apec summit.
In his meeting with the Chinese President, Hu Jintao, Mr Obama
pressed him to allow the Chinese currency, the yuan, to rise, and
on the need for a rebalancing of the global economy, White House
officials said.
Mr Obama also warned the Chinese president that Americans
were becoming impatient over US-China economic ties.
In his meeting with the Russian President, Dmitry Medvedev,
Mr Obama discussed Afghanistan, Iran and Syria, among other sub-
jects.
Mr Obama said they “reaffirmed our intention to work and
shape a common response so we can move Iran to follow its in-
ternational obligations when it comes to its nuclear programme”.
y Japan ‘boldness’
The TPP currently includes Chile, New Zealand, Brunei and Sin-
gapore - all relatively small economies - with the US, Australia, Ma-
laysia, Vietnam and Peru negotiating to join.
And Japan, the world’s third largest economy, has now said it
also wants to join the discussions.
President Obama said he had been “extremely impressed with
the boldness” of the Japanese Prime Minister, Yoshihiko Noda,
whose decision to join free trade talks is strongly opposed by Ja-
pan’s farmers.
Mr Obama spoke after holding his first substantive talks with
the new Japanese Prime Minister at the Apec summit.
Mr Noda told the US president that he was beginning steps to
“review Japan’s beef import restrictions and expand market access
for US beef”, the White House said in a statement.
While not taking part in the TPP discussions, Chinese President
Hu Jintao said in Honolulu that he backed a long-term goal of nego-
tiating a free trade area in the region, which could in future include
all Apec members.
Mr Hu said Beijing would focus on innovation and encourage
investment overseas.
The BBC’s Kim Ghattas in Washington says the US sees Asia as
essential to America’s future, both economically and strategically.
y What is Trans-Pacific Partnership? How is it important to India?
The Trans-Pacific Partnership (or the TPP as it is generally
known) is a free-trade agreement being negotiated between 11
countries of the Pacific rim including Australia, Brunei Darussalam,
Canada, Chile, Malaysia, Mexico, New Zealand, Peru, Singapore, the
United States of America and Vietnam. Japan is the 12th country
that has entered into the negotiations to join the TPP. The US ad-
ministration under President Barack Obama seems to have priori-
tised the TPP as the economic component of its “rebalancing” to
Asia strategy.
Some have suggested that the TPP would compete with ex-
isting and proposed free trade arrangements in Asia and pose
a challenge to the economic unity between the ASEAN (Associa-
tion of Southeast Asian Nations) states since some of them are
members of the TPP and, moreover, the ASEAN itself is involved
in negotiating a large trade agreement – the Regional Comprehen-
sive Economic Partnership or the RCEP. The RCEP involves negotia-
tions between 16 countries - the 10 members of the ASEAN and six
regional partners (India, Japan, China, South Korea, Australia and
New Zealand).
There is clearly an overlap in the membership of these two
trade agreements. However, this does not necessarily imply that
the goals of the two agreements are antagonistic. The TPP seeks
to vastly reduce tariff levels among member countries and stand-
ardise policies on various issues including safeguarding intellectual
property rights. The ambit of the RCEP is not quite as vast. The two
can therefore be seen as different rungs on a free-trade agreement
ladder. Although some American officials have stated that the US
would welcome India’s participation in the TPP, India has not made
any official statement on the issue suggesting such a move. It may
be reasonable to expect that it will take some
time before India would be amenable to joining a trade agree-
ment such as the TPP, whose scope extends well beyond other
trade agreements India has partnered in.
GLOBAL FOCUS

CATALYZING TECHNICAL TEXTILE BUSINESS IN INDIA
THROUGH INDIGENOUS MACHINERIES
B.S. Pancholi-
Marketing Officer
MANTRA
Abstract
The discussion about Technical Textiles (TT) in India has shifted
from passion to action after decades of deliberations though it is
yet to progress to note worthy market size. It is not that no one is
interested, it is not that no one has money to invest, it is not that
market is not existing but it is the story of typical Indian business
style and the typical Indian bureaucracy. For investing in a business
the investor should have clear information about the product, raw
material, machines, process, legalities/compliances, market, eco-
nomic viability and business dynamism. Unfortunately all these are
not properly available to investors and the biggest hurdles are raw
materials and machineries. For many products raw materials are
imported and they become extremely expensive due to very high
duties, taxes and charges. The machineries are neither manufac-
tured nor represented by any agency for sales and services.
In TT business the share of machines on total capital invested
is very high and one has to go abroad even for a glance at such ma-
chines. This obviously discourages the investor from entering into
TT and anxiety about after sales services will be quite obvious. If
somebody ventures into manufacturing of machines for products
in demand, that can catalyze investment in TT. The investor always
likes to gain confidence on machines and technology before open-
ing the strings of his purse. The indigenous machines provide such
opportunity and after sales service would also be more ensured.
The conventional textiles could progress well in India and achieve
appreciable global market share because they have indigenous
supply of raw material and machineries.
The author has indentified the medical textiles and hygiene
products that have sizable market presence and rapid growth po-
tential as sectors for investment. The scope for manufacturing ma-
chines and their technical viability are briefly explained. This would
provide clear guidelines to investor in those sectors of TT and in
manufacturing the machineries.
1.INTRODUCTION
Discussing about Technical Textile (TT) had been the topic of
passion at business circles of textile and others. All who is heard of
TT believes that future of textile lies in TT in India. Couple of dec-
ades back many experts predicted growth rates as high as 13 to
15% and investment worth several thousand crores rupees. These
predictions failed to pick the pace even after all hard efforts by gov-
ernment and other agencies including many foreign consultants.
No doubt today lot of industrialists and investors are aware of TT
sectors and the business potential in them. However the industry
has failed to witness sizable investment so far.
This paper discusses the potential sectors that an investor can
think of entering and setting-up business. the investment in manu-
facturing indigenous machines and the boost-up to industries by
that are dealt with in detail.
2.CURRENT STATUS OF TECHNICAL TEXTILES
The TT industry in India has grown from 47,000 cr in 2007-08
to 57,000 cr in 2010-11 registering a CAGR close to 11% which is far
below the targeted growth of 11th plan. The current market size is
said to be 64,000 cr. The Government of India has set a target of
achieving 1,58,540 cr by the end of 12th plan i.e. 2016-17 with a CAGR
of 20%. Though there are over 3000 units manufacturing TT the
industries that have recognizable position in industry are less than
2%. Out of the total 12 different types of TTs only Packtech, Hom-
etech, Clothtech and Sporttech have major shares in this 57000
cr. market. The Packtech being the largest of TT has woven sacks
as the major product and is of very low-tech product. The product
range in other types is also limited to simple basic products and has
no R & D value in them. In other types of TT the products are mainly
import dependent and dominated by multinational brands.
3.POTENTIAL SECTORS OF TECHNICAL TEXTILES
If one looks at current market size the above listed 4 types are
leading TT in India. The first three i.e. Packtech, Hometech and
Clothtech have, obviously, large market presence because they
have graduated from conventional textile to TT and they have
been in use for decades. However, if the emerging types are to be
considered then one finds Meditech, Geotech, Buildtech, Indutech
and Mobiltech as potential sectors. Though Geotech is in discussion
for quite a long time it has not yet picked-up the pace because it
is dependent of government initiative and growth will not happen
till government makes it mandatory at Highways and in major in-
frastructure projects. Buildtech and Mobiltech are the areas where
again some government regulations can drive the growth. For ex-
ample if government makes flame retardant finish or the minimum
functional requirements as mandatory for fabrics used at commer-
cial buildings and vehicles then the end user starts adopting techni-
cally suitable fabrics.
The Meditech is the area that is not dependent on government
but on society. The society is changing very fast and is maturing to
quickly adopt the one which is good for it. There are various rea-
sons why rapid growth rate is assured in Meditech products. The
author considers this as the highly potential area among TT for in-
vestment in India.
3.1 Increasing affordability of consumer3.1 Increasing affordability of consumer
Fig. 1 India’s Population Spectrum
The TT industry in India has grown from 47,000 cr in 2007-08
TECHNICAL TEXTILE

The income of Indian consumer in the middle, upper middle and
rich class (350 mn) is also growing very fast. This rise will enable
them to make more discretionary spending on products that makes
them more comfortable. Sometime the status symbol plays a major
role in usage of such fabrics. For example earlier people used to
keep fancy or superior quality handkey in pocket; now it is chang-
ing to wipes of various types. Per Capita income of Indian consumer
has increased from Rs. 46,492 in the year 2009-10 to 54,527 in the
year 2010-11 at 17% growth rate. This section of the population is also
well educated and has high enough disposable income to afford
nonwoven disposable products. The high birth rate also ensures a
recurring huge demand for infant-related nonwoven products.
3.2 Increasing adaptability level/acceptance of products
Not only the capacity of consumers to spend is growing, but
also their willingness to spend on products which were not used
previously is increasing. Such products include wipes, diapers, sani-
tary napkins, disposable sheets, pads, etc. With growing aware-
ness, consumer will realize, and be willing to pay for the superior
functionality of such technical textile products. According to the
report titled, “Medical Nonwoven Disposables: A Global Strategic
Business Report”, Asia-Pacific offers massive potential in the long
run largely driven by some of the fastest growing global economies,
including China and India. A large consumer base in these countries
coupled with improving healthcare system and safety awareness
bodes well for the medical nonwovens disposables market. Asia-
Pacific is the fastest growing medical textiles market in the world.
3.3 Graying world
Aging population worldwide is also fueling demand for medical
nonwovens disposables. The old age is characterized by increased
incidences of acute diseases, necessitating the need for more
number of surgical procedures. Nonwovens disposables are more
preferred in such procedures due to higher safety and usage con-
venience. As the population of old people continues to grow alarm-
ingly throughout the world, surgical procedures using nonwoven
disposables such as surgical gloves, masks, and adult diapers are
also expected to multiply.
3.4 Need for disposables in Medical Textiles
Use of disposables in hospitals and operation theatre has be-
come essential rather than a comfort. Over 1.4 million people
worldwide are suffering from ‘Hospital Acquired Infection’ and the
figures are still increasing at an alarming rate. Infection rate at hos-
pitals vary from 10 to 20% in India compared to 0.8% to 2% in the de-
veloped countries, due to the usage of disposables. About 56% of
reusable textiles have significant defects that could sacrifice their
performance in the long run. Usage of disposables reduces ‘Surgi-
cal Site Infection’ by 2.5 times when compared to the use of linen
gowns and drapes. In US 2 mn persons get cross infection (HAI-
Hospital acquired infection) during hospitalization, of which 3.25
lakh (1992) are surgical site infection! The material cost for treat-
ment was $10 bn. It is 3 mn in Europe! Estimated direct and indirect
effect is $1.5 lakh per person! HAI caused 19,027 deaths and con-
tributed for additional 58,092 deaths (1992) in US. It was evaluated
that gowns are the major means of patient-to-patient transmission
of microbes. A doctor in Pune had died due to HAI of H1N1 during
last year. The danger has further aggravated due to entry of many
new viruses and diseases.
The disposables medical textiles provide many advantages and
cost benefits. In Indian market they are at nascent stage but can
expand rapidly if a serious attempt is made. Their merits are,
• Prevents and controls cross infection, protection, comfortness,
easy care and many times lower cost.
• Nonwovens have good breathability and higher barrier to blood
or body fluids.
• Safe for doctors, nurses and patients.
• Bacterial filtration efficiency-95-98%.
• Lower lint than linen.(Lint is source of infection)
• Reusable Textiles can develop tears, holes and lint during the
washing process.
• Washing, sterilizing, etc are very rigorous and expensive. May
not be free from infecting microbes.
• Patients feel confident about freedom from cross infection
An example of bacteria filtering efficiency of reusable gown is
given in table 1. Very significant reduction in bacterial filtration ef-
ficiency with successive washes has been noticed in research stud-
ies.
Table 1. Bacteria filtering efficiency of reusable gowns
3.5Destiny for investment
From above arguments one can realize that India has huge po-
tential in Medical Textile field. The estimated market size for the
year 2011-12 was 3500 crores. There are many conventional prod-
ucts like surgical dressings, sutures, gowns, drapes, masks, slip-
pers, shoe covers, caps, disposable under garments, etc. with siz-
able market presence. But many new products are essential due
to points sited above. Hence disposable medical textiles, advanced
wound care products, implantable materials, etc. have great poten-
tial for investment. The manufacturing process, machines required
for making, technology and compliances are not very complicated.
If one studies the economic feasibility and marketing strategy for
such products then he gets convinced in investment. All necessary
data for decision making are available and one has to make-up
mind for venturing in these areas.
Similarly hygiene is another segment under medical textiles and
they cover sanitary napkins, baby diapers, incontinences and wipes.
These hygiene products are considered as Gold Mines of technical
textiles. There are few global players but space for domestic play-
ers is equally good. Earlier all raw materials were required to be
imported and now many are available from Indian source or from
Indian dealers. The fear of competing with multinationals has dis-
couraged the Indian investors but if a proper strategy is adopted
TECHNICAL TEXTILE

then one can mint money. There are around 500 NGOs in the mar-
ket producing very crude products, still they are sustaining and
making profit too. There are quite a few unfamiliar products but
have entered Indian market which the investor can think of manu-
facturing and become pioneer in the field.
4. INDIGENOUS MACHINERIES FOR TECHNICAL TEXTILES
India’s share in global TT is only 8% which appears too small. But
in terms of rupee if one looks at the size is 64207 crores (2012-13) at
12% rate of growth which is definitely not a small figure for the one
who is interested in entering for business in the sector. The conven-
tional textiles has 10 times the size and is supported by availability
of indigenous machines not just today but right from thousands of
years. The machines are available for fiber extraction or spinning
to garment making. Wherever imported machines are used, such
as weaving, knitting, garmenting, their local dealers and service
providers are available. The use of imported machines in these
processes started almost 45 years back; hence the confidence in
investing on imported machines has crossed the initial anxiety pe-
riod. The number of machines installed is more and the number of
industries spread across the country is also high. Due to crossing
of initial anxiety phase of installing imported machines the conven-
tional textile has technology of global standard and manufacturing
is well established.
The machine is the backbone of any manufacturing process and
availability of indigenous machine is very crucial for growth at ini-
tial phase. Unfortunately in India presence of indigenous machine
manufacturers for TT are as good as zero. The technology is less
known, products are uncommon, raw materials are import depend-
ent, machines are not available even to glimpse, so are the sales
and services. Further the imported machines are complicated, high
speed/productive and market demands are low, a big miss match
between market demand and the production. Hence the investor
gets unnerved to shell out money.
If anybody starts manufacturing machines for this sector then
the investment is bound to happen, no second thought about it.
However, it may not happen with every sector of TT but there are
quite a few segments under TT that throws huge opportunity.
4.1 Technology requirement
The industry is looking for,
– Local technology
– Slow speed machines,
– Sturdy and reliable in working,
– Indigenous and low cost machines
– Sophisticated machines can be in future or in specialized fields
4.2 Converter machines – to begin with
The converter machines are the best bet for indigenous ma-
chine making. As discussed under section 3 of this paper, medical
and hygiene sectors have excellent potential to grow. They need
simple and low cost machines for making products listed below.
• Medical Textiles – gowns, caps, masks, shoe covers, drapes, bed
linen, gloves, trey covers, hospital under pads, bandages, etc.
• Hygiene – sanitary napkins, panty liners, maternity pads, baby
diapers, adult diapers, sweat pads, breast pads, etc.
• Wipes – wet wipes, baby wipes, dry wipes, industrial wipes, clini-
cal wipes, body wipes, etc.
• Scrubs – dish washers, industrial washers, polishing scrubs, etc.
• Packaging – shopping bags, packing liners, storage bags, stor-
age crates, saree cases, etc.
• Disposables – slippers, under garments, table covers, decora-
tive sheets, wall papers, etc.
One can easily understand that products listed above have huge
demand in market and they will continue to grow at high rate. The
machines required to make them are also simple. But the imported
machines are costly, high productive and automated. For example,
even a less complicated machine of Taiwan or China make for a sim-
ple product, a mask, costs $40,000 to $90,000 per machine. They
are capable of massive production, 50 to 100 thousand pieces per
day. The figure of 100 thousand pieces of production and selling
them from the day one unnerves anybody venturing into this new
business.
Similarly a doctor’s cap making machine produces not less than
a lakh piece per day and again the cost of machine is 30 to 50 lakh
rupees. These machines will cost anywhere in the range of 50 to 75
lakh after the freight, tax, duties and installation. Another exam-
ple is of ultrasonic sealing machines. These machines are currently
used in large number in Indian industry for shopping bag making
and they can be used for other applications such as gowns. These
machines are again sourced from China.
The wet wipes and various other types of wipes have made
inroads into Indian market. Their usage is going to expand in an
unimaginable rate in near future. These machines are supposed to
dip the nonwoven fabric in solutions, squeeze to required percent-
age, cut the fabric sheet to size, fold and pack. Operations are very
simple, yet the machine costs 50 to 300 lakh rupees and produces a
TECHNICAL TEXTILE

million to two million pieces per day.
Fig. 4 Shopping bag making machine
Shopping bag has already picked up market quite considerably.
But machines are still imported and they are expensive.
The sector of great potential and badly in need of such devel-
opment is of sanitary napkin making machine. Those available in
global market are of high speed, automatic and very expensive. The
potential for making such machines can be understood once their
market demand is understood. A simple and logical calculation is
given below.
Table 2. Potential for sanitary napkin (SN) machines in India
The imported machines cost as low as 1.5 crore to as high as
15 crore rupees and their landed cost will be 50% more than their
basic cost. No doubt they are capable of producing 3 to 10 times
the production shown above. But the investor likes to match the
production to his marketability at first and then may expand once
established. The approach for making such machines should be,
Sanitary napkin machines:
• Type – Mechanical
• Scope – at least 125 machines in next 5 years,
• Current price range – Rs.1.5 cr. and above
• Focus – simple, slow speed, low cost, reliable
• Target price – Rs. 25 lakh and above, speed no bar
• Technical expertise – available
• Please note this sector is predicted to explode shortly in India
Similarly the potential for baby diapers is shown in table 3.
Table 3. Potential for baby diaper machines in India
One may consider this as hypothetical but if example of China is
taken as a guideline today they have 75% penetration level in sani-
tary napkins and diapers. They too had situation similar to India, no
local machine suppliers and market dominated by foreign brands.
But today they have more than 850 industries making hygiene
products and their top 3 brands are not any multinational but their
own local brands. They are supported by not less than 50 indige-
nous machine makers few of them are rated better than European
companies. China also started from slow speed, non- automated,
indigenous machines and grown strong in TT market.
5. CONCLUSION
The TT industry should progress at targeted growth rate of 20%
in 12th five year plan. The technical textiles are not for luxury but
are essential to the society. Even after a lot of effort by government
and other agencies the investment is not picking up. One of the ma-
jor reasons is non-availability of indigenous machines. No doubt for
entering into the business of manufacturing machines their sales
have to be ensured. Though there might not be good scope in many
sectors of TT the converter machines used for making medical and
hygiene products throw huge potential. Those who think for busi-
ness in TT shall consider investing in manufacturing products under
medical and hygiene or the converter machines for making them.
The expertise and resources are available. Once began with these
simple machines extending to complicated machines are not very
difficult. In conventional textiles Indian machines compete with Eu-
ropean machines and are much better than Chinese machines.
The Technical Textile industry growth can be catalyzed if indig-
enous machineries are made available.
TECHNICAL TEXTILE
To be creative means to be in love with life. You can be creative only if you love life enough
that you want to enhance its beauty, you want to bring a little more music to it, a little more
poetry to it, a little more dance to it.
― Osho
“
”

PRICEWATCH REPORT
CRUDE OIL: STRONG US$ AND SUPPLY GLUT PRESSURED
OIL MARKET
Crude oil prices set-
tled down 3% weekend
after data showed that
the US oil drilling rig
count rose for a sec-
ond week in row and a
stronger US$ weighed
on demand for green-
back-denominated crude
futures. A slide in Wall
Street share prices, the
largest since April, also
prompted pre-weekend
profit-taking in Brent and US crude futures, which had rallied ear-
lier in the week. The US$ jumped its most in nearly two months, as
jittery global financial markets sent investors towards safe haven
currencies. US oil drillers added three oil rigs during the week, af-
ter a nine-rig added in the previous week, said Baker Hughes in its
weekly survey of the rig count. European Brent front-month set-
tled at US$50.54 a barrel, losing 2.7% weekend its largest drop in a
month. The front-month in US crude West Texas Intermediate fu-
tures settled at US$49.07, down 3%, marking the largest slide since
early April. However, for the week, Brent rose nearly 2% and WTI
about 1%, helped by gains in the first three days that boosted the
Brent to an eight-month peak and the US benchmark to July highs.
Polyester Chain: PFY, PSF markets mixed
Asian ethylene prices were flat to down amid thin trade and
bearish derivatives
outlook. However, the
decline was limited as
firm styrene triggered
demand by weekend.
In Europe, ethylene
markets were hit by
production issues
and spot was at 3-4%
discount to MCP. In
US, spot neared two-
month high as three
producers suffered pro-
duction disruptions. Paraxylene prices in Asia moved in line with oil
prices, surging day on day throughout the week only to fall back on
weekend seeing crude declining on last two days of the week. In
US, spot continued to rise behind Asia as it remained major export
destination. Production economics were better, but unattractive.
European paraxylene prices gained but edged down week-end. As
crude oil prices firmed up MEG prices in Asian markets were lifted
in most actively traded August MEG futures. Several traders were
heard to be short-covering H2 June and July physical positions and
picking up some H2 July cargoes. In US, traders did not see much
spot as recent rains caused problems for barges. European MEG
demand was moderately balanced amid tight supply. PTA prices
firmed up in Asian markets amid rising feedstock price and expect-
ed supply cuts. In China, spot PTA market was quiet as a whole for
lack of indication from PTA futures. European PTA contract price
remained range bound and unchanged over the week. Polyester
chip markets were modest amid Dragon Boat holiday atmosphere.
In China, producers maintained prices stable for semi dull chips due
to lack of directions from futures market. Super bright chip market
mirrored the trend in semi dull chip market. PFY markets in Asia
were under the influence of firming crude oil early in the week
which tumbled by weekend. In China, overall spot activity was
passable, and prices remained steady. In India, POYs were mainly
offered stable but saw thinner activity. In Pakistan, selling indica-
tions for DTY yarn were flat seeing PTA values in mild corrections.
PSF markets were range bound on the back of a sustained price rise
in crude oil benchmarks, and producers held wait-and-see stance.
In China, prices in Jiangsu and Zhejiang were slightly up while in
Fujian offer were down. In India, producers’ offers rolled over, but
enquiries were lackluster. In Pakistan, PSF prices declined due to a
lack of demand from downstream yarn spinners.
Nylon Chain: Benzene prices surge across regions
Asian benzene
prices surged tracking
firming crude oil but
the drop in crude prices
weekend pressured the
markets and prices fell.
Benzene prices were on
the uptrend through-
out the week. In US,
spot gained on lower
inventories while low
shipment from Europe
tightened prompt sup-
ply. In Latin America, spot was up following stronger USG. Euro-
pean benzene prices rose supported by higher demand from sty-
rene, phenol and acetone markets. Caprolactum prices were firm
on range-bound feedstock benzene cost and decent downstream
demand. Mainstream values for liquid goods stood firm at previous
week’s level while values for East European goods were pegged
at a roll over. Nylon chip prices firmed up but hike met with some
resistance and received limited support from upstream. Liquidity
was slow owing to cautious buying from majors on existing losses.
Stepping into slack season, downstream converters’ operation in-
tentions were low citing flat nylon yarn prices. NFY prices moder-
ated to a lesser extent with most goods firm in view of stable nylon
chip. Otherwise, prices hike met with some resistance. With low
YARN REPORT
Vidya Vadgaonkar
Email: Vidya@ynfx.com
Tel: +91 22 66291122
Mobile: +91 9619 293725

operating intentions against weak buying interest, the supply de-
mand fundamentals were under pressure. Demand was lackluster
for staple fiber, fishing-net yarn and monofilament market.
Acrylic Chain: Pro-
pylene, ACN surges
across markets
Asian propylene
prices inched up on
unsteady supply while
demand was on the up-
ward trend. However,
prices remained un-
moved for three days
as demand in China re-
mained flat. In Europe,
production outages
boosted prices as polymer grade spot rose to meet the June con-
tract price. Chemical grade propylene prices were assessed up. In
US, propylene June contracts was talked at a rollover while refinery
grade was at two-month high. Acrylonitrile prices in Asia continued
to track higher following a spike in prices last week amid continuing
tight supply and also supported by rise in propylene cost. European
acrylonitrile prices ascended on demand from Asia while limited
availability pushed US prices to 9-month high with spot rising for
10th straight week. Demand remained healthy while export spot
assessment rose to a 10-month high. ASF prices remained stable
although acrylonitrile cost surged over past few week which has
put ASF margins into red. Overall, trading activity was mute, giv-
en low buying interest ahead of the Dragon Boat Festival early in
the week. Prices in India and Pakistan also rolled over given stable
downstream yarn prices.
Viscose Chain: Prices stable to firm
VSF markets were
generally stable seeing
modest buying inter-
est in China before and
after the Dragon Boat
Festival holidays. Some
mills reportedly main-
tained regular procure-
ment. Producers with
tight supplies on ample
orders concluded deals
at high level, while oth-
ers who provided dis-
counts for negotiated deals. Prices in India remained unchanged
seeing downstream makers holding on to high prices. Similarly, VSF
prices in Pakistan also rolled over. VFY prices were stable on the
whole with steady liquidity. In China, VFY market sentiment was
stable, and is likely to remain stable later, with the prices for spo-
radic specs possibly hiked. VFY prices in India remained unchanged
from last week, supported by modest demand in both domestic
as well as export markets. Upstream, dissolving pulp market saw
fresh offers emerged mostly at an increase from the levels in May.
Offers for softwood pulp from North America were at US$920 a
ton, while mainstream offers for hardwood pulp were hiked US$10
to US$870 a ton.
Cotton: Prices up on falling inventory and delayed rains in In-
dia Cotton prices were seen surging across markets on the week.
US cotton futures al-
though settled lower
weekend after the
USDA cut its outlook
for global inventories,
largely on a decrease
in inventories in China,
the world’s largest
consumer, December
cotton contract on ICE
Futures US settled up
1.8% on the week. The
July contract ended the
week up 1.3%. The Cotlook A index was up 2.8% while the China Cot-
ton Index gained 19 Yuan a ton. In Pakistan, lean business activity
was seen on the cotton market as a result of less buying interest
by mills. The official spot rate was down PakRs100 on the week.
Reports indicate that the kind of dullness persisted for a long time
was owing to directionless business. In India, delay in arrival of
monsoon could adversely impact cotton acreage in the key grow-
ing regions. Thus, cotton prices were seen surging INR1,200-1,900
per candy.
Spun yarn: Yarn pric-
es moving in search
of demand
Cotton yarn prices
in China were in mild
upward correction
given bullish sentiment
in cotton market, and
spinning mills enjoying
healthy offtake vol-
umes. In India, cotton
fiber prices surged fur-
ther, but yarn prices did not follow the trend. Carded yarn prices
stayed unchanged but combed cotton losing value. In Pakistan,
demand was weak post new changes in taxation announced in the
budget. Prices declined but failed to attract buying interest. Offers
for spun polyester yarns in China were stable amid limited trans-
action volume. In Pakistan, polyester yarn prices moved lower as
demand was at a low level. PSF prices too declined due to a lack of
demand from the yarn makers. In India, polyester yarn prices mod-
erated slightly as they had remained in line with fiber prices for past
weeks, reflecting weakening demand. Spun viscose yarn market ac-
tivity in China softened a bit due to Dragon Boat Festival holidays.
Discussions for ring-spun and sirospun yarns remained flat and pric-
es remained unchanged. In India, although viscose yarn prices were
flat in INR terms, they moved up more than 1% on the week, im-
plying stronger currency. In Pakistan, viscose yarn prices retreated
PakRs1-2 per pound, implying that demand was very weak on the
domestic market. Blended yarn prices remained relatively stable in
China lacking demand from downward processors. In Pakistan, the
government released a series of decisions to boost exports after
they remained very depressed last months. The stimulating meas-
ures are however expected boosting demand for blended yarns in
the coming weeks. In India, PV prices were seen rolling over while
PC yarn prices edged down on the week.
YARN REPORT

June 2016

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