November 2017 issue

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TE TILEX
VALUE CHAIN
November 2017 Volume 5 Issue 11
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Interview : Geron India / LAPP India
Market Report : Yarn Report / Surat Report
Brand Update : Raymond/ Liva/ Donear/ Adidas / Truetzschler
Global Focus: India - Japan Asia's Most Strategic Friendship
Sustainable Fibre : Soya-Bean
Technical Textile Articles

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11www.textilevaluechain.comNovember 2017
November 2017 ISSUE
CONTENT
Advertiser Index
COVER STORY
13- Gujarat Eyeing US$ 250 Mn Investment And 1 Lakh New Jobs
In Apparel Manufacturing
14- Gujarat : A Lucrative Investment Destination for Textile
Industry
15- Textile Machinery Scenario In India
INTERVIEW
18- Mr. Ashutosh Gilra, Indian Representative Of Geron Card
Clothing (Jiangsu) Co., Ltd.
19- Mr. Marc Jarrault, Managing Director – Lapp Group India Pvt.
Ltd.
MARKET REPORT
21- YARN REPORT
22- Fibres To Yarns Pricing Trend
23- Surat Report
BRAND UPDATE
25- Raymond FMCG Business To Expand With ‘One Park Avenue’
26- Liva Nurturing The Future Of Ichalkaranji
27- The Promoters Of Donear Group Acquire OCM Woolen Mills
28- Adidas Originals ‘Fashion Destination Door’ Store Debuts In
India
33- Truetzschler Technology – Old Is Gold!
34- ECONOMY UPDATE : Moody’s Upgrade Turns Sentiment
Around For Rupee
35- GLOBAL FOCUS : India - Japan Asia’s Most Strategic Friend-
ship
EVENT UPDATE
24- Colombiatex 2018:
39- Texfair 2017 & Farm to Finish Expo 2017
40- Buyer Seller for Powerloom Products
41- GOTS
42- Solapur’s 2nd Edition Uniform, Garment and Home Textile
Expo
43- ITMA 2019
NEWS
17- Textile Sector Skill Council
37- Minister Sven-Erik Bucht , Sweden visits to Mumbai
38- Concerns Raised under Man Made Fibre sector
42- Interactive Meeting on Protech
44- SUSTAINABLE FIBRE : Clothing From Soya- Bean Fibre
TECHNICAL TEXTILE
46- Crop Management through Agro Textiles
48- Important Requirements For Anti Riot Body Protector For
Police And Paramilitary Forces
50- SHOW CALENDAR
EDITORIAL TEAM
Editor and Publisher
Ms. Jigna Shah
Consulting Editor
Mr. Avinash Mayekar
Graphic Designer
Mr. Anant A. Jogale
Sales Manager
Mr. Md. Tanweer
Editorial Assistant
Mrs. Namsha T.
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 and Head MPD
Dr. Rajan Nachane
Retired Scientist, CIRCOT
Delhi Representative office :
Mr. Sudhir Verma
Knit Experts
242, Pocket 3,
Sector 23, Near Max Fort School,
Rohini, New Delhi- 110085
Email : knitexperts@rediffmail.com
Tel : +91-9818026572
Back Page : Raymond
Back Inside : RSWM
Page 3: Bianco
Page 4: OTO Corporation
Page 5: SGS Innovation
Page 6: Amith Garment
RD Shah
Page 7: Revolve Valves
Page 8: JK SulzTex
Page 9: DN Associates
Page 10: TexLab
Page 29: Haija Machinery
Page 30: GTTES
Page 31: Udyog 2018
Page 32: SKBS
Page 51: Liva LAPF
Page 52: Sanjay Shah &
Associates
Page 53: LAPF Connect
Page 54: Vora Associate
Shailesh Engineering
Page 55: Liva Studio
Page 56: Rudra Digital
Mahendra Textile
Page 57: Sanjay Plastic
Page 58: Tuff Plast

www.textilevaluechain.com12 November 2017
EDITORIAL
Ms. Jigna Shah
Editor and Publisher
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Is Revised Incentive the Best Solution
for Indian Garment Export Sector?
Indian Textile and Garment industry has always been competitive in the domestic and export market. The Indian
history reflects that export of Indian textile is demanded by rich economies of the world like the US and the EU
regions. The export of Indian Garments flourished until 2005 i.e., pre quota period. The Indian garment exporter
used to enjoy and dominate the world by the quota for specific country with special product group. After 2005,
WTO announced the abolition of quota. Due to this, we lost the advantageous position we enjoyed earlier and
other underdeveloped neighbouring countries went ahead in the race.
After losing the special status and finding difficult to compete with neighbouring countries, the Indian exporter
required all the taxes and incentives to be rebated in order to be able to export in the global market. So, the
Government announced Merchandise Exports from India Scheme (MEIS). In this export promotion scheme, the
exporter of readymade garments and made-ups used to get 2% incentive. Recently the Garment Association
demanded revised incentive increased from 2% to 4%, which is double the rate. Subsequently, few cotton & yarn
associations also started demanding that the revised incentive be made applicable for Yarn and Fabric segments
also. Currently, Fabric is having only 6% share in World Fabric export. Also, cotton yarn does not have an edge
over its competitors and Indian yarn prices are 5-6% higher than the other neighbouring countries.
The government announced the post-GST rates for claiming rebate of state taxes under the scheme for Rebate of
State levies (RoSL) on exports of readymade garments and made-ups in a bid to support the outward shipments.
Recently, RoSL rate for cotton made ups have been increased from 1.55% to 2.20%.
The industry is expected to have a positive reaction towards the revised incentive in this festive season. But can
any industry depend only on Government support?
Wish you a Merry Christmas & a Very Happy New Year 2018..!!!

Gujarat Eyeing US$ 250 Mn Investment And 1 Lakh New Jobs In
Apparel Manufacturing
State governments in India seem to have identified ap-
parel manufacturing as a key industry to generate em-
ployment and are actively working to provide sops and
support to attract mega investments. Earlier it was the
eastern states of Orissa and Jharkhand which announced
lucrative incentives to apparel manufacturers to counter
the lack of fully developed manufacturing ecosystem in
respective states. The latest state to announce a dedicat-
ed package for apparel manufacturers is none other than
the “Textile State of India”- Gujarat.
In October, Gujarat Government announce dseveral fis-
cal and non-fiscal incentives under its Garment & Apparel
Policy 2017 (Textile Policy 2017).The policy aims at gar-
nering an investment of US$ 250 mnin the state’s apparel
sector over the next five years and creating1 lakh new
jobs. Revamping its Textile Policy which was announced
in 2012, the State Government has now identified appar-
el manufacturing as the engine for growth and is looking
forward to attract investment in downstream value chain
and create the pull effect in the entire value chain.
The key highlights of the new policy are:
y Interest subsidy: 5% per annum subject to a maximum
of Rs. 7.5 Cr. per year for 5 years. Eligible Investment -
Land, Building and Plant & Machinery
y Power subsidy: Subsidy @ Rs.1/unit for 5 years.
y Payroll assistance: For units having minimum 150 ma-
chines and generating at least 300 domicile jobs, pay-
roll assistance of 50% of wages will be provided up to
Rs. 4000/- for female and Rs. 3200/- for male worker
per month for 5 years.
y Plug and Play Systems: Gujarat Industrial Develop-
ment Corporation (GIDC) will develop readymade
sheds (along with adequate support infrastructure) for
apparel factories in select locations and provide them
on long term lease or rental basis. GIDC will be pro-
vided with 50% assistance of project cost, which will be
passed on to enterprises on pro rata basis.
Dormitories:
ƒ Assistance through GIDC: GIDC will develop dormi-
tories in select locations and provide them on rent
(minimum lock in 10 years) or long term lease basis.
Dormitories will be operated by leasing entity itself.
State government will provide rent assistance of 50%
to enterprises.
ƒ Assistance directly to private developers: 50% project
cost subject to a maximum of Rs 5 Cr. Dormitories to
be developed for min 250 workers with a max built up
area of 50 sq. ft./ person
ƒ Setting up of training institution: Assistance up to 85%
with a ceiling of Rs. 3 crore of the project. Eligible in-
vestment- Building, equipment & machinery (including
installation), electrification, furniture, etc. excluding
land cost.
y Setting up of training centers: Assistance of 50% sub-
ject to a maximum of Rs. 20 lakhs per center. Eligible
investment- Equipment & machinery, electrification
and necessary furniture
y Reimbursement of tuition fee to trainees for apparel
production courses: 50% of total fee charged by insti-
tution subject to a limit of up to Rs. 7,500 per trainee
(Rs 10,000/- for middle level management courses)
y Mega apparel park: Up to 50% of the total cost of the
project with a maximum limit of Rs. 10 crore. 100%
stamp duty exemption only once, for developer and
first purchaser of individual unit.
Out of the various incentives provided, the major attrac-
tions for the apparel investors are payroll assistance and
infrastructure support in the form of plug & play set ups.
Under Payroll Assistance, wage subsidy of Rs. 4,000 per
month (Rs. 3,200 for male) provided will have direct, posi-
tive impact on the cost competitiveness of the apparel
manufacturers in the state as it would mean approx. 30-
35% wage subsidy. Payroll assistance is a major fiscal sup-
port for apparel companies as wages have a major share
in cost of manufacturing. In terms of cumulative fiscal
benefits, the interest subsidy, power subsidy and payroll
assistance would provide for almost the entire project
investment in 5 years. In India, there is precedence of
payroll assistance and other fiscal incentives being pro-
vided by few other states to textile and apparel sector.
However, the infrastructure support being provided by
Gujarat in the form of readymade sheds and dormitories
is first of its kind.
The state government plans to provide compliant and
good, standard ready-to-move-in sheds as well as dormi-
tories to the manufacturers at reasonable cost. Such an
incentivized readymade set-up will reduce the cost of es-
tablishment and will help investors in coming up with big-
ger units.Though there is huge availability of manpower
in the state, retaining the workforce in the apparel sec-
tor is one of the key challenges industry is facing today.
Availability of dormitories near the factories will not only
address this challenge but also provide compliant and
hygienic habitat to the workers.China had adopted this
model in late 80s when it was in its initial phase of in-
dustrialization. It established large industrial zones which
provided all types of support infrastructure to the inves-
tors. Today, Ethiopia is doing the same by providing such
facilities in its industrial parks. Gujarat has taken the lead
in India to establish such infrastructure and significantly
reduce the associated risk for investors. By providing this
infrastructure support, the Government of Gujarat has
COVER STORY

created a possibility for investors to set-up operations
in expensive zones (with better connectivity, manpower
availability, etc.) without creating their own infrastructure.
As an overall package, the Textile Policy 2017 is perhaps
the best one, considering the fact that the State itself is
well recognized for swift business approvals and ease of
doing business. In addition to this, the state has a signifi-
cant fabric and yarn availability. In view of all these as-
pects, the policy targets set by the Gujarat government
look very much achievable. Varun Vaid
Associate Director, Wazir Advisors, varun@wazir.in
Disha Acharya
Consultant, Wazir Advisors, disha@wazir.in
Gujarat : A Lucrative Investment Destination for Textile
Industry
Introduction
Gujarat is rightly known as the “Textile State of India” as
itcontributes 25%to the country’s manufacturing sector
and 12% to the country’s textile exports. There are several
factors that have led to the development of the textile in-
dustry in Gujarat which are analyzed below.
Availability of Raw Material
Gujarat is the largest producer (33%) and exporter (60%)
of cottonin the country. Gujarat is also the largest pro-
ducer of denim(65%) in the country and 3rdlargest in the
world, with a billion metrecapacity. Gujarat is also called
“Denim Capital of India”.
Home to Machinery Manufacturers
Gujarat is home to more than 50% of the country’s pro-
cessing machinery manufacturers and 90% of weaving
machinery manufacturers
Boasts Plethora of Manufacturing Units
Gujarat is abode to more than 1500 medium and large
textile units and 600 medium and large textile processing
houses.
It is largest manufacturer of man-made filament fabric
(38%) and man-made fiber (31%). It is also the 2ndlargest
manufacturer of cotton fabric, producing over 390 million
metres/annum. Gujarat manufactures 30%of the coun-
try’s woven fabric.
The Sintex Industries located in Gujarat is Asia’s largest
manufacturerof corduroy fabrics.
Skill Development
The following institutions are located in Gujarat, which fo-
cus on skill development in the textile sector:
y Ahmedabad Textile Industrial Research Association
(ATIRA), Ahmedabad
y Man-made Textile Research Association (MANTRA), Su-
rat
y National Institute of Fashion Technology (NIFT), Gan-
dhinagar
y Apparel and Leather Technics (ALT) Training College,
Ahmedabad
y National Institute of Design (NID), Ahmedabad
y Surat Education and Research Society,Surat
Further, the Ministry of Textiles, Government of India, has
declared ATIRA as a Centre of Excellence (CoE) for com-
posites. The composite centre will help in the develop-
ment of entire value chain of textile industry.
Presence of Leading International and National Players
Several national players have taken advantage of the ben-
efits offered by the state including Arvind Mills, Welspun,
VardhamanGroup, Alok Industries, Raymond, Garden Silk
Mills, Mafatlal, Aditya Birla Nuvo.
Some of the international players located in Gujarat are
Finnish firm Ahlstrom, American firm HygienicsCorpora-
tion, Austrian firm TenCateGeosynthetics.
Textile Policy
Gujarat has formulated its own textile policy. Until re-
cently, the textile industry in Gujarat was governed by the
Textile Policy of 2012. To a great extent, the policy served
the purpose in the segments of cotton ginning and press-
ing, spinning, lower-end technical textile, training centres
COVER STORY

and textile parks. However, the segments of weaving, pro-
cessing, garments-apparel and high end technical textile
sectors required more focus and development. In order
to give a boost to the industry, the textile policy has been
revised and the Textile Policy of 2017 was notified in Oc-
tober, 2017. The Policy aims to create 1,00,000 job. The
new scheme includes interest subsidy, payroll assistance,
special concessions in power tariff, plug and play systems
for apparel manufacturing, support for establishing mega
apparel park and skill development amongst other incen-
tives.
Conclusion
Gujarat enjoys a unique position in the textile sector in In-
dia having abundance of raw material and manufacturing
units. The presence of several leading in Gujarat is also a
testimony to the fact that Gujarat is a lucrative destination
for investment. However, what remains to be seen is how
the new textile policy of 2017 would be put into execution
and deliver the promise of creating 1,00,000 jobs in the
sector.
Varsha G Subramanian,
TVC – Editorial Assistant
Textile Machinery Scenario In India
Technological advancement is need of the hour. The
technology developers are constantly driving to produce
& invent machineries that save time & make process sim-
pler. Every now & then a new technology is introduced
that brings massive change in production quantity, qual-
ity and operating time or eases the process. All these ad-
vantages come with a price, it demands additional capital
investment. Today for completing a single process there
are multiple technologies available that do the same work
in multiple ways. So when it comes to selection of a tech-
nology for textile machineries people just don’t jump to
the latest version like in the case of smart phones. A de-
tailedcomparison of price to the need of advancement
is carried out along with analysis of advantages that the
technology will offer.
Global Textile machinery market is witnessing tremen-
dous growth buoyed by growing demand of textile &
apparel market. It is forecasted to grow at a CAGR of
14.02%till 2018.The major countries manufacturing tex-
tile machinery are Germany,Italy, Switzerland, France and
now China. The textile technologies are available in two
version low cost (semi auto) mostly manufactured in Chi-
na and high cost (auto) in developed countries.
The Indian textile Machinery industry is nearly sixty years
old and has more than1000 machinery and component
manufacturing units. Nearly 300 units produce complete
machinery and the remaining produces various textile
machinery components. We all know that India is the
global leader in textiles only second after China. We are
having best quality of cotton and producing finest quality
of yarns, fabrics & garments. But unlike China we do not
have in house manufacturing of textile machineries. Most
of the machineries are being imported. India in 2016-17
imported machineries worth Rs. 14,990.83 Cr. We are
importing a lot of textile machinery as there are only a
handful of quality machinery manufacturers in India. In
spinning sector there is only one Indian manufacturerthat
provides all machines for spinning having international
standards. There is hardly any Indian machinery manu-
facturermanufacturing machines for weaving, knitting
that provides high level of quality standard and perfor-
mance to compete with the European manufacturers.
There is hardly any manufacturer making circular knitting
and flat knitting machinery. As far as processing is con-
cerned recently there are a few manufacturers coming up
but they are still establishing their setups and yet to touch
to the global standards.
The global demand of textile machinery is rising due to
growing demand of textile industry. Today, Textile machin-
ery sourcing is majorly done from European or Japanese
countries, which are relatively costly. India is strategically
located from most of major textile & apparel producing
countries and India has good potential to explore global
opportunities & tap global market. India has to first focus
on exports to the neighboring countries which are emerg-
ing as significant textile producers.
If we look at the Indian textile industry, we will find that
even today there are a lot of textile mills still operating on
older outdated versions that increase their overloads and
thus ultimately leads to the shutdown of such plants. On
the other hand in majority of textile units we will come
across a mixed version of technologies with part of ma-
chineries having the latest & best version & few running
on outdated versions. There area few Mills that have
completely upgraded themselves with the technological
flow. Looking at their success & profit ratio’s textile en-
COVER STORY

trepreneursin India are now exploring various options for
technology advances. Today with the rising awareness of
robotics & automation the textile industry is switching to
“Auto” mode or at the least a “Semi-Auto” mode that has
reduced the dependency on workforce.
With Technological advancements gone are the days
when hours & hours were spent to manually count &
feed the number of products produced. Automation has
brought new ease to this industry by increasing the ef-
ficiency & quality of products. The invention of auto error
detecting technology helps inminimizingthe errors by dis-
continuing the process at the very instant when a defect
is detectedso that it can be rectified&azero defect prod-
uct can be delivered. Automation has madethe process
much simpler & has drasticallybrought down the wastage
levels. As reported by technavio research agency global
automation market in the textile industry by hardware &
software was valued at US$ 1,553.7 Mn. in 2016 & is es-
timated to grow with a CAGR of 7% till 2021. In Asia the
automation market in textile industry is growing with a
CAGR of 6.33%.
Automated Ma-
chineries have
c o m p l e t e l y
changed the
scenario of spin-
ning mills. Au-
tomation has
taken place in
various process-
esright fromcot-
ton picking and
ginning which
were 100% manually operated earlier to winding & re-
winding. At blow room, sequence of different machines
are arranged in series & connected by transport ducts-
for opening, cleaning and blending to help improve the
performance. Invention of machines like ring spinning,
open end spinning air-jet spinning, rotor spinning, Vortex
spinning, ring can spinning etc. has increased the effi-
ciency & reduced the operating cost of spinning units by
manifolds. The improvements in Ring spinning machines
have taken place with inventions of drive systems, draft-
ing systems and use of robotics. Invention of High Volume
Instrument (HVI) has made possible to carry out the cot-
ton fiber test in seconds which earlier needed a couple of
hours. Automated cotton mixing helps maintain uniform-
ity in the yarn. Introduction of auto yarn fault detection
tool has improvised the production & provided uniform
yarn quality. Yarn knots are now been replaced with the
joints using splicing techniques like air splicing, wet splic-
ing, hot air splicing and moist air splicing thus minimizing
the defects in the produced fabric.
Weaving machines have also undergone tremendous
modifications in
last three decades
ultimately resulting
in improved qual-
ity and production.
From handloom
to powerlooms
& now automatic
shuttle andthere-
after shuttleless
looms have taken
this industry to a
new level. Shuttleless machines have not only increased
productivity, efficiency but have also made possible the
production of fault free fabrics. In case of Rapier looms
recently various developments have taken place in filling
insertion, shedding mechanism, let-off mechanism, take-
up mechanism, selvedge, quick style change to name a
few.
In Dyeing process there are multiple stages likeDesizing,
Scouring, Bleaching, Printing and Finishing. Automation
has helped the dyeing process by providing the precise
control on various factors which are critical for main-
taining the qual-
ity like pressure,
t e m p e r a t u r e ,
time of treat-
ment, water level
etc. Also robots
are being used
to pick the yarn
bobbins and
transport them
with the help
of the self-pro-
pelled bobbin carriers to the dyeing and drying machines.
Unloading is also automated with the help of robotics.
Automation in dyeing helps in reduced water consump-
tion and lesser cost for treatment and water. It also helps
in controlling the consumption of colour chemicals and
hence increaseseffective utilization of man and machine
ultimately improving production per shift. It also auto-
mates the colour matching in the dyeing process which
increases the uniformity of end product & reduces a great
amount of wastage.
The Garmenting industry has evolved with the introduc-
tion of automation, today technologies like reconfigurable
robotic handling devices, cutting table with automatic un-
loading, intelligent transportation system, manufactur-
ability prediction, Virtual Tryon, 3D garment design etc.
are being used worldwide. Cut fabric parts are now being
collected and delivered to the next stage by automated
transport system. Automation has gifted the fashion in-
dustry a precious gem to print, make & embroider any
COVER STORYCOVER STORY

type of designs on garments at the same time.
Conclusion:
On one hand the technology advancement is at its peak
but on the other hand all these advances demand huge
capital investments. Such high capital investments will au-
tomatically be reflected on the price of end product. But
as we all know, the entire textile value chain is constantly
under price pressure from the brands. As compared to all
other industries, the textile industry is having least profit-
ability thereby questioning the need of additional capital
investments.
Branded garments even after several years remain un-
damaged. They are left out in closets not because they
look old but because the fashion is old. The fashion is
changing very fast and so ideally, we must be in posi-
tion to change or buy garments with changing fashion.
But the high price paid to the brands has compelled con-
sumers to lower their shopping cycle. This over engineer-
ing of clothes must be analyzed properly. There is need
to observe and study these technology developments
rather than simply adopting them, we must focus on the
absolute needs. We need to tone down the over techni-
cal specifications and adopt to appropriate technologies
that gives lower operating cost rather than an over engi-
neered garment.
As we are global leaders in Textiles next to China, we
must also develop textile machinery manufacturing hub
that will not only suffice our own country’s need but also
source machinery to international market increasing our
exports. There is a tremendous growth for machinery
market worldwide and so it is time for India to capture
and en-cash on this opportunity.
Avinash Mayekar
MD and CEO
Suvin Advisors Pvt. Ltd.
Textile Sector Skill Council Receives Champion Skill Council Award from
Shri Arun Jaitley, Honourable Finance Minister
Shri Arun Jaitley conferred the award, “Champion Sector
Skill Council” to Textile Sector Skill Council (TSC) for its
outstanding work in establishing skill-training ecosystem
for Textile & Handloom industry. Shri Sanjay Kumar Jain,
Chairman and Dr J V Rao, CEO of TSC received the award.
The same was awarded in a function to commemorate
the 3rd Foundation Day of Ministry of Skill Development
and Entrepreneurship (MSDE), GoI, on 9th Nov 2017
Shri Dharmendra Pradhan, Hon’ble Minister of Petroleum
& Natural Gas and MSDE, Mr. Kenji Hiramatsu, Ambassa-
dor of Japan to India, Ms. Chanda Kochhar, MD & CEO,
ICICI BANK LTD., Dr. K.P. Krishnan, Secretary and Smt. Su-
nita Chibba, Senior Adviser, MSDE, graced the function.
The award was constituted by MSDE for the best perform-
ing skill council among the 40 sector skill councils jointly
established by GoI and various industries to meet the
ambitious mission of empowering Indian youth with skill
training and employability.
TSC over the last 3years has established industry recog-
nized training eco system for 67 job roles, which consti-
tutes to 80% of workforce employed by the industry. It
also certified more than 1,300 trainers, who are capable
to provide both class room and on-job training as per na-
tional occupational standards. Till date, about 400 textile
mills are affiliated to TSC and have adopted the training
ecosystem developed by TSC to train about 40,000 fresh
trainees.
TSC also facilitated to organize RPL programs and certi-
fied about 65,000 handloom and powerloom weavers of
17 states including NE and J&K. These programs helped
some of the weavers in availing Pradhan Mantri Mudra
Loan to become 1st generation entrepreneurs. These
programs also helped a few Manipur weavers to get con-
nected to European buyers.
NEWS
COVER STORY

Geron Card Clothing Known For Its High Skilled Technologies
What inspired you to start this company?
The company was started in the year 1965to cater to the
needs of indigenous Chinese card making industries. The
company provided them with card clothing. Our product
is a part of bigger machine called card. We have been the
suppliers to all the production of card that was taking
place in China since 1965. Later on, in 1987 we expanded
and set up our second plant with European technology.
Subsequently when private entrepreneurship was en-
couraged in China, the company embraced it.
What are the segments in which your company oper-
ates? How diverse is your market?
We are primarily into spinning and textilemachineries.
We have our presence in all countries that are in the
spinning segment such as China, US, Vietnam, Thailand,
Bangladesh, Pakistan, Uzbekistan, Egypt.
What are the challenges or hardships faced by your
company over the years?
In the initial years, our company enjoyed a smooth sail
as OEM supplier in the Chinese market. Once, the com-
pany moved to the open market economy, we modified
our products to meet a different set of market require-
ments. We were working with the vision of making our
products world class and in order to achieve that we had
to invest in acquiring better quality raw material, ad-
vanced machines with latest technology and highly skilled
technicians. Winning over these challenges has helped us
move beyond our home country China and expand our
presence in several countries.
What do you consider as the biggest achievements of
your company?
Our company enjoys 65% market share in China and ap-
prox.. 20% in India. We enjoy majority leadership in the
North India and we have also grown exponentially in the
central and southern regions of India.
What is your future plan for the next 5 to10 years?
We are aiming at setting up our manufacturing units in
India. We see great potential in India, especially with the
Make in India initiative which is a big boost for the future
plans of our company. We are yet to decide where we
will be setting up our units, but we have shortlisted a few
places.
What is the USP of your brand?
The USP of our brand is technical competence and techni-
cal advancement.
What is your review towards the TEXFAIR Exhibition?
This is our third time here. We find this exhibition to be
very useful.
Brand name :Geron
Company name :Geron Card Clothing (Jiangsu) Co., Ltd.
Brand Tagline: Blue Diamond – Heart of Blowing- Carding
INTERVIEW
Exclusive Interview With Ashutosh Gilra, Indian
Representative Of Geron Card Clothing (Jiangsu)
Co., Ltd.

LAPP Group India
Lapp Group India, a 100% subsidiary of the LAPP GROUP
Germany, is a leading supplier of integrated solutions and
branded products in the field of cable and connection
technology. Having started its operations in 1996 with a
manufacturing unit in Jigani-Bangalore, it is the second
largest plant outside Germany. In 2012, Lapp Group In-
dia completed the first phase of its second manufactur-
ing plant in Pilukedi, Bhopal. In 2014, the production area
at Jigani was also doubled and a new multi core line was
commissioned in Bhopal with a total investment of over 5
Million Euros. Currently, Lapp Group has the second big-
gest market in India.
To service our customer better, we currently have 23
Sales offices along with 5 service points & 5 warehouses.
We also have a strong network of 180 dealers and dis-
tributors, a state of the art laboratory and a fully-fledged
Innovation & Engineering Centre.
Lapp brands – ÖLFLEX®, UNITRONIC®, ETHERLINE®,
HITRONIC®, EPIC®, SKINTOP®, SILVYN®, FLEXIMARK® –
are some of the best-known brands in the cable technol-
ogy field.
Exclusive Interview with Marc Jarrault – Managing Di-
rector – LAPP Group India Pvt. Ltd.
1. Give us a brief background of LAPP Group. What in-
spired you to start a company in India?
Headquartered in Stutt-
gart, Germany, Lapp
Group is a leading sup-
plier of integrated so-
lutions and branded
products in the field of
cable and connection
technology. Its wide
range of portfolio rang-
es from standard and
highly flexible cables
for power, control and
data applications, and
industrial connectors,
customized system so-
lutions, robotics solu-
tions & automation sys-
tems for the intelligent
factory of the future.
Lapp Group is a family run company. The founders of
Lapp Group had a special affinity towards India and had
foreseen potential of the Indian market in terms of rapid
growth in infrastructure and industrialization in the year
1996. India has always been a key focus for themowing to
the promising growth opportunities of the country. Lapp
Group India is the second largest company of the Lapp
Group.
Mr. Andreas Lapp,Chairman of the Board Lapp Holding
AG, is also Honorary Consul of the Republic of India for
Baden-Wuerttemberg and Rhineland Palatinate. He has
always urged and worked towards extending support to
enhance and strengthen the trade relations between the
two countries.
2. From 1996 to 2017 your company has come a long way.
What according to you has contributed towards the suc-
cessful expansion of your company over the years? How
has your company kept pace with technological upgrada-
tion over the years?
At Lapp Group India, we always strive towards improve-
ments in methods, processes and technologies. We con-
tinuously strive towards developing our products and sys-
tem solutions keeping in mind the customer requirement
and our high standards of quality, safety and reliability.
OLFLEX® CONNECT is our customized cable assembly so-
lution to help offer customers with a plug and play solu-
tion in order to scale up to meet business requirement
while saving on operational and capital expenditure and
the cost of holding inventory at the customers’ end.
LAPP Group India is ISO 9001:2008 certified. This is an in-
ternational certification awarded to companies which fol-
low the quality management principles to improve organ-
izational performance. Both our manufacturing plants in
Bangalore and Bhopal and our Sales offices across the
country are certified under ISO 9001:2008.
3. What are some of the biggest challenges your company
has had to face over the years?
India is a challenging market. The market is price sensi-
tive and demands world class technologies at affordable
pricing. To meet this challenge, we manufacture products
high in demand in India with an exception of some spe-
cialized products.
Another important challenge is the infrastructure which is
the key to ensuring that heavy-duty products are moved
from one to place to another to ensure timely delivery. It
is critical that as a country we lay more focus on devel-
oping road and rail infrastructure to fuel growth by en-
suring ease of transportation of goods from one place to
another.
Moreover, India needs to emerge as a manufacturing
hub for machines and equipments like China and Europe.
‘Make in India’ is a step towards this. This initiative will
help grow the demand for cable and connection technol-
ogy as well.
LAPP India Customizes Cabling Solutions For You
INTERVIEW

The Government’s implementation of GST has further
eased the process of doing business and is a big step to-
wards ease of doing business and establishing India as a
global manufacturing hub.
4. What are the unique attributes about your prod-
ucts that set them apart from the products offered by
other players in the Indian market?
Lapp Group is a solution provider with customizing the
products according to customer’s requirement. We are
the one stop shop for all your cable and connectivity re-
quirements. We have an extensive range of more than
40,000 products which are of superior German quality. All
our products comply to global standards, and come with
low maintenance cost and high service life.
We offer not only high quality but also technologically su-
perior products.
5. What has been your approach towards product in-
novation in the textile industry? Describe your wide
range of products for the textile industry.
In 1996, when we started our operations in India, textile
industry was one of the focus segments. We have some of
the reputed textile manufacturers as our oldest custom-
ers. Lapp is re-thinking and re-defining the cable and con-
nection technology, with focused R&D and innovation, to
meet the challenges faced by the textile industry. Our of-
ferings go further than just the cables for the power, con-
trol and data applications but also connectors, conduits,
cable glands, marking systems and tools along with our
OLFLEX® CONNECT customized cable assembly solution.
Lapp is synonymous with innovation and we believe in
developing innovative cabling products and solutions that
help and assist our customers. For the textile industry, we
offer tried and tested products and customized solutions,
used in various stages of textile processes like spinning,
weaving, knitting, fabric and garments processing. Lapp
products are designed for critical applications like contin-
uous motion, high temperature, for chemical and other
harsh environments. Lapp cables are slim and light in its
construction making it more flexible and can withstand
high temperatures. The products are chemical/oil resist-
ant and weather proof, with great mechanical strength.
Following are few of our products that are ideal designs
for the textile industry:
OLFLEX® CONNECT: OLFLEX® CONNECT our custom-
ized plug ‘n’ play solution, ranges from the simple cable
assemblies to industry standard servo connections and
right up to sophisticated high-speed drag-chain systems,
to help meet exact customer requirements.
OLFLEX® CLASSIC 110 cables: These are screened PVC
control cables with transparent outer sheet, designed to
be flame retardant and all weather resistant.
UNITRONIC® cables: Data network cables and field bus
components provide a forward-looking solution for all ap-
plications in industrial machinery and plant engineering.
From transmission of simple control signals to field bus
signals in complex network structures, we offer a reliable
cable and connection solution.
ETHERLINE® cables: High-quality data communication
systems for ETHERNET technology. A secure, fast and reli-
able path to the future of ethernet applications and deliv-
ers an effective solution for applications in the industrial
environment.
EPIC® SMART: Industrial connecters designed and manu-
factured specifically for Asian markets with the promise
of high performance at a cost-effective price. These con-
nectors are waterproof and temperature resistant that
can be used for the power and control applications in tex-
tile industry.
6. What is your take on the future scenario of cables
and connected technology in the Indian market?
One of the emerging trends in Data Network cabling is
the use of fiber optic cables emerging as a popular medi-
um for both new cabling installations and upgrades, over
copper cables. Fiber offers a number of advantages over
copper including greater bandwidth, higher speeds and
greater distances, higher levels of safety and immunity to
many environmental factors that otherwise affect copper.
Also owing to its light weight, design and durability, the
size of fiber makes it easier to handle and takes up lesser
space in cabling ducts. Manufacturers have also started
to offer end-to-end cabling solutions that provide the
benefit of consistency to one’s network. Of the thousands
of feet of cables running through a manufacturing facility,
the end-to-end solution brings together all components,
cable assemblies, patch panels, patch cords, connectors
and adaptors.
7.What are your future plans?
India is the 2nd largest market where we are growing at
double digit. Apart from India we also see China as the
crucial market as it is a manufacturing hub and market in
US has also proved to be fruitful for us.
Our vision is to become the preferred partner for cable
and connection technology for our customers across all
segments of the industry. We at Lapp Group India aim
to double our current annual turnover and build a base
of 10,000 active customers by the year 2020. This growth
is expected to come from ensuring that we increase our
customer base in our focus segments and also strength-
en our presence in retail. To achieve long-term sustained
growth, we will continue to cater to different industry seg-
ments and focus on large corporate organizations as well
as SMEs & SMBs. Our key focus areas include automation,
textile, F&B and infrastructure industries which have been
witnessing considerable growth over the last few years.
INTERVIEW

The first month of 2017-18 cotton marketing year, re-
corded 89 thousand bales (of 170 kg each) of shipment
as against 51 thousand bales in October 2016. With 2016-
17 marketing season (October-September) closing at 6.74
lakh bale, it implies that exports this year will be signifi-
cant.
The price realization averaged (FOB) INR119 or US cents
80.8 per pound this month as against the Cotlook Index
‘A’ at 78.7 per pound Shankar-6 spot at US cents 75.4 per
pound.
Compared to a year ago, realization this year was US cents
7 lesser than last year but more than the ruling spot val-
ues and Cotlook ‘A’ index averages. However, a discern-
ing trend will emerge in November this year since last
year the markets were disrupted by the demonetization
policy of the central government that banned high cur-
rency notes with effect from 9 November. The event had
pushed peak period by almost a month and remained
extended until May 2017.
Bangladesh, Vietnam, and Indonesia were the largest im-
porters of cotton with combined volumes at 82 thousand
bales amongst the 11 countries that imported cotton
from India in October. China was the fourth largest at 2.9
thousand bales. It was also the lowest price paying im-
porter at US cents 62.85 per pound FOB while Bangladesh
paid US cents 83 per pound on an average.
Cotton Availability
The Cotton Association of India released the first estimate
of the country’s cotton crop for the current season (Octo-
ber 2017-September 2018) at 375 lakh bales as against
337.25 lakh last year. The increase this year is due to a
19% expansion in acreage compared to last season.
Cotton balance sheet for this new season shows a sur-
plus, with a closing stock of 39 lakh bales. Exports are
expected at 63 million bales while domestic demand is
pegged at 320 lakh bales.
Woven fabric export declines
Woven fabric shipments could not sustain the sharp re-
covery of September as it hit a three-month low in Octo-
ber. Volumes declined 13% to 332 million sqmtrs worth
US$276 million or INR1,170 crore, the levels seen in July
2015, the first month of new tax regime (GST). Thus, cu-
mulative export in the first seven months of 2017-18, was
2,450 million sqmtr, down 3.6% compared with same pe-
riod a year ago. In terms of value, woven fabric export
was worth US$1,990 million or INR12,680 crore. Export-
ers were reportedly struggling with a liquidity crunch
because of delayed GST refunds, leading to the highest
overall trade deficit in 35 months.
In October, 143 countries imported woven fabrics from
India, with Bangladesh leading, followed by Sri Lanka
and UAE. The three together accounted for 34% of to-
tal woven fabrics ex-port during the month. During the
month no shipment was recorded to 11 countries who
had imported last year. However, they were replaced by
17 countries which imported fabric worth US$2.40 million
this October.
Nepal, Chad, Reunion, Afghanistan and Romania were the
fastest growing markets for woven fabrics, and account-
ed for 3.75% of total export value in October.
About 56% of woven fabrics exported were made of 100%
cotton worth US$154 million (INR985 crore) with volumes
at 188 million sqmtr. The average unit price realization
was at US$ 0.82 a sqmtr, about US cents 5 less than a
year ago.
Plain fabric exports, accounting for 62% of all types of wo-
ven fabrics exported in October 2017, declined 26% in vol-
ume on year on year comparison. Shipment totaled 228
million sqmtr worth US$170 million. Bangladesh, United
Arab Emirates, and Sri Lanka were the top markets for
Yarn exports up in October, fabrics down as exporters hit
by liquidity crunch
YARN REPORT

plain fabrics.
Denim, the second largest woven fabric exported in Octo-
ber maintain a healthy trend, in-creasing by 18% year on
year in volume and 24% in value at US$ 33 million. They
were mainly imported by Bangladesh with Guatemala Sri
Lanka following at a distant. Denim exports to these mar-
kets were worth US$ 24 million.
Shirting/suiting volumes increased sharply but values re-
alization was down. Sarees export were hit significantly,
falling over 40% year on year this October.
A sharp rise in export of furnishing fabric continued into
October with USA and UK dominating markets during Oc-
tober.
Fibres To Yarns Pricing Trend In November
Cotton
The expectation of a sharp fall in cotton prices remained
elusive in Indian markets in November due to slow arriv-
als and falling yield due to pest attack. The cotton crop
is set to fall significantly, say reports. The Cotton Asso-
ciation of India has projected 2017-18 crop output at 375
lakh bales (170 kg each). However, based on reports from
mandis, CCI feels the yield will be lower by at least 10%
and, with lower arrivals at the beginning of the season,
the crop size may be lower. However, clarity on the crop
is expected in coming weeks on the extent of damage the
pink bollworm has done to the standing crop, especially
in Maharashtra and Telangana, which together harvest
40% of the total crop.
Usually, from November onward, daily arrival historically
average 200,000 bales a day. This month, they are 30%
lower. This has even dented exports prospects and may
be less by 20% than previous target.
Coarser variety cotton spot prices rose INR 250-1,075 per
candy during November while benchmark Shankar-6 was
traded down INR 975a candy, at INR 37,500 a candy on av-
erage. Finer variety cotton was cheaper by INR 900-1,675
a candy during the month.
In China, cotton spot markets were under weak cor-
rection, and traders were mainly inclined to offload
goods. The China Cotton Index fell 23 Yuan to close
the month at an average of 15962 Yuan a ton.
US cotton Futures on the ICE rose over 2% during Novem-
ber amid light trade and marking its biggest weekly gain
in over two months during the last week, following the
release of impressive US export sales data amid a weak-
er dollar. March contracts settled at US cents 71.73 per
pound. The USDA reported net upland sales of 357,000
running bales for 2017-18 marketing year, down 30% from
the previous week, but up 18% from the prior four-week
average. De-
cember con-
tracts, facing
first notice
day, gained
US cents 4.61
atUS cents
72.23 per
pound and
traded up 30
points over
March. Trad-
ers not want-
ing to risk having to make or take delivery closed or rolled
December positions prior to first notice day.
Spot benchmark, Cotlook A index gained 1.8% in No-
vember at US cents 80.13 per pound.
In Pakistan, cotton prices jumped as market remained
panicky over the uncertainty about crop size and lint qual-
ity. In spot, spinners continued to chase quality cotton,
with lint prices attaining a new peak. Availability of qual-
ity cotton was getting difficult, perturbing spinners who
are exploring the option of imports. Although spinners
prefer to import cotton from India the government ban
has so far restricted imports from the neighbour. Reports
showed that ginners have started holding stocks in an-
ticipation of a windfall profits by disposing lint at higher
rates later.
Cotton Yarn
Cotton yarn markets were mostly subdued in China dur-
ing November amid thin transaction, and some sellers
lowered their high offers slightly for some specs. Conven-
tional varieties like 21S, 32S and 40S saw slightly better
demand. Open-end cotton yarn market was steady, and
the demand situation was moderate. However, discounts
YARN REPORT

were available
depending on
specific orders
as markets
held poor out-
look. 21s av-
eraged 19.35
Yuan a kg (US$
2.93 a kg) while
32 s was at
23.22 Yuan a
kg (US$ 3.51 a
kg) in Shengze.
In India, cotton yarn prices dropped in November with
30s combed yarn for knitting was INR2.50 cheaper on the
month at INR 192 a kg (US$ 2.97a kg, down US cents 3) in
Ludhiana while export offers fell US cents 5 to US$ 2.95
a kg.
Polyester
Polyester sta-
ple fibre pric-
es were up in
China, Pakistan
and India dur-
ing November.
In China, as PTA
futures was un-
der fluctuation
the polyester
markets re-
mained range
bound. Some
PSF producers
were heard offloading goods on discounts later in the
month. Offers for 1.4D direct-melt-spun PSF in Jiangsu
and Zhejiang averaged US$ 1.37-1.39 a kg, while the same
in Fujian and Shandong were at US$ 1.35-1.41 a kg, all up
US cents 1-2 on the month. In Pakistan, PSF were hiked
to a record level over a fresh surge in demand and prices
until mid-November in China. Prices gained Pak Rs1.50 a
kg or 1.1% at Pak Rs135.50-136.50 a kg or US$1.10-1.12 a
kg. In India, PSF prices gained INR 2.25 to INR 89.50 a kg
or US$ 1.38 a kg.
Polyester yarn prices were down in India and Pakistan
and up in China. Offers for polyester yarn in China were
up US cents 4 in November with 32s at US$ 2.06 a kg while
45s scaled to US$ 2.21 a kg. In India, polyester yarn 30 knit
yarn fell INR 10.25 in November to INR 135.25 a kg or US$
2.09 a kg (down US cents 15) in Ludhiana market.
Polyester intermediates
Purified terephthalic acid prices, which have been on a
consistent uptrend since mid-October, were still on the
rise but at a slower pace than earlier as demand was
softer currently of the year. Producer inventories were at
critical low level. Another reason for firm prices has been
strong crude oil prices, giving strong support for the poly-
ester intermediate rise to higher. Asian markers gained
US$ 36.50 November with CFR China at US$ 685-687 a
ton. In India, PTA priceswere up US$ 36.25 at US$ 709 a
ton CIF.
Mono ethylene glycol markets remained under the influ-
ence of rising crude oil values, amid increasingly bearish
market sentiment in the key China market. However, fall-
ing inventories in East China supported spot markets as
they were down in November to 491 thousand tons. Asian
spot MEG prices gained US$ 5.50
on the month with CFR China at
US$ 890-905 a ton and CFR South
East Asia to US$ 921-926 a ton. In
India, MEG prices gained US$10
to US$ 902 a ton CIF to average
in November.
Nitin Madkaikar
Textile Beacon
SURAT UPDATE
Synthetic yarn climbing new hights : Prices surge upto
Rs. 10/kg.
The Powerloom machinery owner of Man-Made
Fibre(MMF) based industry in Surat are worried about
contineous increase in yarn prices since a month. Various
deniers of synthetic yarn have reached at new height in
every sale. The prices of texurised yarn, FDY has incresed
upto Rs. 8-10/kg. during last the month. In December’s
first sale, yarn manufacturers & spinners has further
tighten the prices. They again have raised the prices of
POY, PTY and FDY by Rs. 1/kg.
Though the prices are increasing, the momentum of mar-
ket is weak. Due to weak demand and GST regime the
weaving sector has observed three weeks long vacation
this year. After Diwali vacation, weaving units are still not
running at full fledged mode. Now, Powerloom weavers
are worried about hike in yarn prices and are in wait and
watch mode for new orders. Many workers have left the
city and have not returned. In some industrial area, the
powerloom units are running on one shift only. The daily
MMF fabric production in the city has come down to 2
crore meter, decreased by almost 50%.
YARN REPORT

Yarn manufacturers are arguing that because of increas-
ing crude oil prices, the raw material PTA, MEG and chips
prices have also increased. The production cost of yarn
has increased and that is why yarn prices have reached
to new heights.
GST procedure will be rationalised : FM Jaitly assured
surat traders
The central government is seriously working on rational-
ising entire GST procedures. The GST regime has made
available a big market for traders of all over the country
and now it is necessary to simplify the GST structure. Ex-
actly before two weeks of Gujarat assembly elections, Un-
ion finance minister Arun Jaitley has organised a meeting
with the traders in Surat and assured them to resolve re-
lated to GST issues.
Jaitley spent an hour with the textile industrialist and
discussed various GST issues. He refrained from giving
any promise but said that government is determined to
resolve procedural and technical issues under GST. The
meeting was attended by all the key leaders and repre-
sentatives of powerloom weavers, textile traders and tex-
tile processors. Interacting with the textile stakeholders,
Jaitley said, “I invite a group of textile industry leaders with
collective representation from the industry to New Delhi.
Senior tax authorities will be deputed to sort out the pro-
cedural issues. The government is working on launching
the national E-way bill between January 1, 2018 to March
31,2018. The national e-way bill will allow the traders to
send their goods to any part of the country, without any
procedural problems.”
The leaders of the different textile associations have rep-
resented their demands under new tax system. They said,
the textile turn over is down by almost 50 per cent in the
last few months due to GST. We have been facing proce-
dural issues, which need to be sorted out at the earliest.
The issues include quarterly filing of GST returns, aboli-
tion of reserve charge mechanism (RCM) and ITC-04. GST
levied in the complex chain of textile industry has ren-
dered a large number of workers in the entire value chain
jobless or with halved salaries. Their demand is to resolve
technical glitches in the GST portal and waived off all the
penalties for late filing of GST returns.
89,000 powerlooms were sold as scrap in Surat : Man-
Mohan Singh
Addressing the business community in Surat former
Prime Minister ManMohan said, GST is a good law but
hastily implemented. The MSME sector has been hit hard.
In Surat 89,000 powerlooms were sold as scrap and it led
to a loss of 31,000 jobs. The impact of demonetisation is
not seen even after a year it’s implementation. Unemploy-
ment is increasing and traders are in havoc. The manu-
facturing and turn over is down in industrial clusters and
big markets across the country. Chinese companies were
benefited from this situation. In FY 2016-17, India’s fabrics
imports from China stood at Rs 1.96 lakh crore. During
the same period in FY 2017-18, the imports from China
increased to Rs 2.41 lakh crore. This unprecedented in-
crease in imports by more than Rs 45,000 crore, a 23
per cent increase in a year, can be attributed largely to
demonetisation and GST. Demonetisation and GST have
also sown a deep-rooted fear of tax terrorism among the
business community, he said.
Colombiatex 2018:
Italian Textile Machinery Sector Marks Significant Presence
The Colombian textile and garments industry is among
the most important one in America, above all with respect
to the fashion sector. Thanks to a number of trade agree-
ments undertaken with neighboring Countries, as well as
with the world’s two major apparel markets (the United
States and European Union), the industry has recorded
further progress in recent years.
At the upcoming edition of Colombiatex, the Country’s
main textile trade fair, to be held in Medellin from 23 to
25 January 2018, Italy’s textile machinery manufacturers
will once again play a prominent role. 24 companies will
be exhibiting their latest technology in the common area
set up by the Italian Trade Agency and ACIMIT, the Asso-
ciation of Italian Textile Machinery Manufacturers.
Among Italian companies exhibiting at the common ex-
hibition space are the following ACIMIT members: Beschi,
Beta, Biancalani, Btsr, Caipo, Carù, Durst, Fadis, Itema,
Laip, Mactec, Marzoli, Mcs, Monti-Mac, Noseda, Ratti,
Reggiani, Salvadè, Santex Rimar Group, Simet, Smit and
Tecnorama.
Interest on the part of Italy’s textile machinery industry
for the Colombian market comes from the ongoing de-
mand for technological updates by local manufacturers.
Italian exports to the region in 2016 rose to a value of 13
million euros. Over the first six months of 2017, sales of
Italian textile machinery to this market exceeded 6 million
euros. Among Made in Italy production technology most
in demand by Colombian textile and garments manufac-
turers are finishing machinery (58% of the total) and spin-
ning machinery (16%).
EVENT UPDATE
SURAT UPDATE

Raymond FMCG Business To Expand With ‘One Park
Avenue’
Revitalizes the male grooming product portfolio
y Under ‘One Park Avenue’, the brand to extend its glob-
al presence
y Unified premium imagery across products and mar-
kets
y Reviving Middle-East footprint and to be available in
Bangladesh and Nepal
y Phase 2 expansion will cover other South Asian mar-
kets in the next six months
y Launches new Eau De Parfum with a new campaign –
‘Unleash your X Factor’
y Targets to be the No. 1 player in the fragrance category
Raymond Group, the leading manufacturer, marketer and
retailer of worsted suiting fabrics and ready-to-wear ap-
parel, today announced ‘One Park Avenue’, a customer
facing initiative for Park Avenue’s range of men’s groom-
ing products. Resonating with the confident young male of
today, One Park Avenue will entail a distinct brand, prod-
uct and an aggressive Go-to-market strategy. The brand
will soon make its way to international markets such as
the Middle-East, Bangladesh and Nepal, with a phase 2
plan to enter South Asian markets of Sri Lanka, Bhutan
and Myanmar in the next six months.
The men’s grooming category is undergoing a transfor-
mation and expanding into multiple formats and sub-for-
mats. Park Avenue is seen as a mature and sophisticated
brand that is recognized as a pioneer in the male groom-
ing space. Under the One Park Avenue initiative, the brand
will have synergies in terms of a Unified Visual Identity, re-
positioning itself with a wider grooming portfolio, premi-
um international packaging and innovative products. The
overall brand architecture will have blue, white and black
colours across product categories. Additionally, the entire
range will be available through exclusive brand outlets of
Park Avenue apparel along with other sales & distribution
channels across India and International markets.
Launching the initiative Gautam Hari Singhania – Chair-
man & Managing Director, Raymond Ltd. said, “Changing
customer preferences, improved lifestyles and growing
consciousness among male consumers, presents us with
huge opportunities in the FMCG space. After the acquisi-
tion of Ansell’s stake earlier this year, One Park Avenue is
yet another significant step that will strengthen our FMCG
play both nationally and internationally, which is an im-
portant driver for value creation for the Raymond group
and an integral part of the Raymond Re-Imagined journey.
One Park Avenue is being led through the introduction of
a new range of fine fragrances and new positioning state-
ment “Unleash your X factor”. The new Eau De Parfums
are masterblended by global perfumers with exotic ingre-
dients and are available in 50ml and 100ml priced at Rs
399 and Rs 699 respectively.
Commenting on this initiative and exciting prospects for
the FMCG business, Giriraj Bagri, CEO – FMCG Business,
Raymond Ltd. said “At Raymond we are leveraging syner-
gies across our FMCG businesses to create a strong and
monolithic FMCG play in our core categories. Simultane-
ously we are also utilizing cross organizational expertise
to bring in efficiencies and cost optimization to help us
invest more aggressively towards newer initiatives such
as ‘One Park Avenue’. The idea of One Park Avenue is built
on unique consumer insights backed by strong innovation
that will drive consumer acquisition and enhance con-
sumer relevance for our lead brand Park Avenue. Going
forward, we hope to clock exponential growth and hence
a coherent unified premium imagery and identity of Park
Avenue has been created for offering the same product
experience globally.”
RAYMOND GROUP’s FMCG PRESENCE
Raymond announced the formation of its FMCG Group in
2016, with a vision to be a player of choice in the world of
consumer goods, offering high quality products in both
the Personal and Home Care categories.
Raymond’s FMCG business currently has a strong retail
presence through 0.25 million retail outlets, including
90,000 pharmacies in the country and also exports to
South East Asia, Middle East and Africa. Given the strong
hold in institutional sales, the business is a preferred
supplier to over a 100 institutions in the country. Ray-
mond Group recently acquired Ansell’s stake in brand Ka-
maSutra, from joint venture entity JK Ansell Pvt. Ltd. This
acquisition will pave the way for Raymond to further scale
up the FMCG Business and unlock the immense potential
of Brand KamaSutra globally.
BRAND UPDATE

Nurturing The Future Of Ichalkaranji
Birla Cellulose, along with Ichalkarangi Shuttleless Loom
Owners’ Association (ISLOA) and Ichalkarangi Shuttleless
Fabric Manufacturers’ Association (ISFMA), has conduct-
ed an interactive customer meet on 21st November at
Hotel Sayaji, Kolhapur with Spinners, Weavers and Pro-
cessors of Ichalkaranji. The meet was aimed at making
Ichalkaranji a self-sufficient hub for finished fabrics made
from Viscose, Modal and Excel fibers offered by Birla Cel-
lulose.
The session was inaugurated by Mr. Chimanbhau Dange,
Managing Director Deendayal Spinning Mills along with
Mr. Gorakhnath Sawant, President, ISLOA and Mr. Anil
Goyal, President -ISFMA.
More than 200 representatives from the textile value
chain fraternity have attended this customer meet where
opportunities in sizing, weaving, processing and various
Birla Cellulose based fabrics were discussed at length.
The session was also attended by Mr. Shyam Sunder Mar-
da Managing Director, Arvind Cotsyn Group of Industries,
Mr. Deendayal Jhanwar Managing Director, Ramakrishna
Cottex, Mr. Jindas Jain, Managing Director, JP Modatex,
Mr. Prasad Athani , Director, Anjaneya Cotton Mills, Mr.
Arun Goenka, Director, Shiva Traders, Mr. Rashesh Modi
Unit Head – Bombay Rayon Fashion Ltd., Mr. Lalit Agar-
wal, Director, Woven & Knit Noida and Mr. Giriraj Mohota,
President, Ichalkaranji Processors Association amongst
other prominent members of the fraternity.
Buyers from Mumbai and Delhi were also present for
networking and procuring high quality fabrics from
Ichalkaranji.
“Ichalkaranji has over 10,000 Shuttle Less looms and the
number is growing by the day. There is an immense po-
tential in this textile hub to adopt Viscose, Modal and Ex-
cel fibers and process them to fabrics which are in ready
demand. The aim of this customer meet is to discuss the
benefits for the value chain and make you all ready for
new and innovative products for value creation”, said Mr.
Uday Khadilkar, Vice President - Birla Cellulose.
Birla Cellulose through its Liva Accredited Partner Forum
(LAPF) assures that the value chain is never deficient of
knowledge and support. LAPF offers Technical, Design
and development, Vendor Management, Product Market-
ing and Market Intelligence supports to all its stakehold-
ers.
“We are glad that Birla Cellulose has conducted this meet
and shared valuable technical inputs with us. This will not
only add value to our existing work, but also make our fra-
ternity explore new opportunities”, said Mr. Chimanbhau
Dange, Managing Director Deendayal Spinning Mills.
Considering the market demand M/s Deendayal Spinning
Mills have recently started manufacturing 100% Viscose
yarns and expects faster growth due to local availability
if quality yarns.
“We are very much thankful to Birla Cellulose for holding
this event for Ichalkaranji textile value chain partners. We
look forward for more closed interactions like this in fu-
ture”, said Mr. Gorakhnath Sawant, President, ISLOA.
“We often face technical challenges while doing some in-
novations. With Team Birla Cellulose and LAPF, we are
sure we will overcome all the challenges and reach new
heights in delivering special and innovative products”,
said Mr. Anil Goyal, President ISLFMA
BRAND UPDATE

The Promoters Of Donear Group Acquire OCM Woolen
Mills
This acquisition makes the Donear Group India’s
largest branded menswear fabric manufacturer
As part of the strategy to consolidate their top position in
Indian textiles industry, the promoters of Mumbai-based
Donear Group have announced the acquisition of OCM
Woolen Mills.
The acquisition of OCM, which manufactures apremium
range of high-quality all-wool and wool-blended worsted
suiting fabrics, will enable the Donear Group to expand
its range of products to Indian consumers for all weather
conditions and for all occasions. In a win-win deal, OCM
gets access to the management expertise of the promot-
ers of Donear Groupto expand its product range and dis-
tribution footprint within India as well as in the overseas
markets.
The distributors of OCM, who generally witness lower
sales during non-winter seasons, will be able to sell an
additional range of products, especially Giza, Supima,
wrinkle-resistant cotton fabric for jackets, trousers etc.
and Terry Rayon fabric for suit length.
Announcing the acquisition of OCM, Mr. Rajendra Agar-
wal, Promoter of the Donear Group said, “Home to the
holy Golden Temple and spirited people, Punjab has al-
ways been special for us.Donear Group started its major
take-off in 1994 from Amritsar. OCM is India’s best-quality
manufacturer of woolen& worsted fabrics, and thanks to
their skilled manpower for ensuring best quality of fab-
ric. OCM’s tweed suiting material is extremely popular for
Blazer &Jacket fabricacross India.No other manufacturer
in India has been able to match the quality of OCM Blaz-
er and jacket of Tweed fabric till date. We have charted
out ambitious and aggressive plans to promote the OCM
brand.”
OCM Private Limited (formerly known as OCM India Lim-
ited) began its journey as a Textile manufacturer 1924
and forayed into worsted fabric in 1972.It has a sprawling
37-acre complex that houses anultramodern plant with
23,000spindles, 120 high-speed shuttles-less looms and a
woolen processing unit, with a weaving capacity of 25,000
meters of fabric per day and an em-
ployee base of 900. OCM is the first
integrated worsted woolen fabric
manufacturing unit in India with the
prestigious ISO 9001 certification. It is
also the first Indian textile company
to receive the NABL accreditation in
accordance with international stand-
ard ISO 17025:2005 for its in-house
Quality Assurance Laboratory.
Originally a part of SK Birla Group (Birla VXL), OCM was
acquired by private equity funds managed by WL Ross
& Co. LLC in 2006. Since that acquisition, OCM has un-
dergone extensive transformation across manufacturing,
product development to revitalizeits brand and strength-
en its business.OCM’s product design function is at the
forefront of global styling with design office in Biella, Italy.
Due to its superior product quality, institutional custom-
ers such as hospitals, airline and hospitality companies,
schools and the government undertakings consider OCM
as their preferred supplier of worsted fabric.
OCM Woolen Mills is the second major acquisition by pro-
moter of the Donear Group after it acquired GBTL Ltd.
(formerly known as Grasim Bhiwani Textile Limited), the
PV Suiting Fabrics business earlier in July this year. Like
GBTL Ltd, OCM Woolen Mills will continue to operate as
anindependent unit manufacturing woolen fabric prod-
ucts under guidance of the Donear Group management.
There will not be any change in the day-to-day manage-
ment or existing policies at the OCM unit.Post-acquisi-
tion, all entities will continue to focus on their respective
brands as separate teams and the management will con-
tinue its efforts to strengthen and utilize their competen-
cies to serve to their customers. Today, OCM offers an
extensive product range under the following brands:
ƒ Ferrara – An Italian luxury for the discerning buyer of
premium Suiting & Jacketing fabrics. It is made from
the blends of cashmere, mohair, silk, rose and milk fi-
bres
ƒ OCM Style - A vast spectrum of offerings with wool &
wool-blended fabrics that balance affordability, latest
trends and a high style quotient
ƒ Siena - This range is trendy, youthful and comes in vi-
brant colors. It drapes well, is breathable and is light
weight
ƒ BOLD - Reflective of contemporary global styling, the
ready-to-wearJackets, Sweaters, shirts & T-shirtsare
the best choice for the modern, young Indian man
ƒ Savannah - A new wave of ethnic fusion fashion with a
remarkable freshness to meet the taste of the modern
Indian woman
With acquisition of OCM, the Donear
Group will be able to offer a complete
range of fabrics under a bouquet of
brands including OCM,FerrinoMizzoni,
GBTL-Grasim (license user of TM
Grasim),Donear, Graviera, Royal Classi-
co, Donear Cottons–Belboni&Cotonova,
iTR Terry Rayon Suiting and Bronson
Shirting.
BRAND UPDATE

Adidas Originals ‘Fashion Destination Door’ Store Debuts
In India
-Mumbai gets its first ever-new format hood for the city’s sneaker-heads & Originals fans -
The pioneering sportswear brand for the streets, adidas
Originals has opened its first ever ‘Fashion Destination
Door’ format store in Mumbai, India. Located in the heart
of one of the city’s most coveted shopping areas on Link-
ing Road, the Fashion Destination Door concept captures
the energy of the streets turning it into a cultural epicent-
er. The inspiration is found in the different iconic neigh-
borhoods of various cities, creating a global connection to
a unique network of influence and cultural creativity.
Spanning over 1550 square feet, this revamped new for-
mat store will house the latest, iconic and most innovative
product stories. The interior design of the adidas Originals
‘Fashion Destination Door’ store combines architectural
details inspired by Mumbai City’s raw aesthetics uniquely
translating the spirit of the city into the store adaptations
that connect with these communities’ creative youth cul-
tures. A lounge area with furniture inspired by the Origi-
nals Superstar offers a space for intimate interaction with
customers and creators alike.
In addition to showcasing a curated selection of product
highlights and statement collection drops which will ex-
clusively be available only at the Linking Road store in In-
dia, the flagship store will never go on sale; and usher in a
new experience for adidas Originals fans in Mumbai with
exclusive events and elevated in store experiences.
The store is the latest in a global series of less than 100
adidas Originals ‘Fashion Destination Door’ concept stores
across the globe and first of its kind in India. This signifi-
cant store opening ratifies adidas Originals long-standing
commitment to India of introducing retail hubs where
customers experience the brand in unprecedented ways
from a localized point-of-view.
The launch of the new concept sneaker mecca will be
celebrated with the showcase of Originals’most innova-
tive styles including Superstar, Stan Smith, NMD and EQT,
among others. The new FW’17 highlights include the in-
troduction of Crazy 8, Forum, Pharrell Williams Hu Hiking
and Alexander Wang.
BRAND UPDATE

Contact:
Suresh Saraf+91 9322 50 4449 / +91 9322 10 4449 | Nayan Saraf - +91 7498 88 1400
Oﬃce Landline - 91-22-6002 0119 /
Email : sureshsaraf2000@yahoo.co.in | info@shreebalajisynfabs.com
sureshsaraf@shreebalajisynfabs.com | Website : www.shreebalajisynfabs.com
Address: Room No.-17, Ground Floor, 342 Kalbadevi Road, Mumbai- 400002
9699 25 8834
SHREE BALAJI SYNFABS
SKBS
MR.SURESH SARAF MR. NAYAN SARAF

Truetzschler Technology – Old Is Gold!
Trust is a word synonymous with Truetzschler for over
125 years, and this is the main reason a small repair shop
in Germany has grown into a company of global stature.
The reasons Truetzschler is so trusted are simple: their
products have tremendous longevity and have performed
well for a period much longer than normally expected.
Workmanship has always been emphasised as the basis
for the solid engineering and quality of Truetzschler ma-
chines. The Germans are known to give rock solid prod-
ucts, and Truetzschler is a standard bearer in this regard.
Right from the first card DK in 1967 running at 10 kg/hour
to the present TC 10 and TC 15 cards running at 200 kg/
hour, it has been a continuous journey surpassing cus-
tomer expectations with trend-setting technology prod-
ucts and unmatched services.
At Truetzschler, since the beginning, research and devel-
opment has mattered the most, and short-term cost has
been a secondary aspect. This philosophy has helped in
developing long lasting world class products for the tex-
tile industry. As a result, Truetzschler machines are per-
forming to the full satisfaction of the customers even 30
years after purchase!
Arvind Mills in Ahmedabad is still running the first genera-
tion DK 740 cards which were delivered in 1993. Appropri-
ate maintenance and re-clothing at proper intervals has
helped the cards to still run at their optimum speeds. A
visit to the carding department shows that the cards are
running with 460 cylinder RPM and still no vibrations are
felt. The mill is happy with the performance and it is in no
hurry to replace the cards. This itself is a testimony to the
robustness of the Truetzschler technology bought by the
mill almost 25 years ago.
Cheran Synthetic Mills (Pallavaa Group), in the quiet town
of Erode, near Coimbatore in South India, has a first gen-
eration automatic bale opener BDT 013 manufactured in
1988. The bale opener is running as well as the new ver-
sion automatic bale openers in the group’s nearby units.
A closer look at the rail tracks reveal that there are hard-
ly any deterioration marks on them. The maintenance
team of the mill is happy with the performance. Mr Du-
raiPalanisamy, Executive Director of the Pallava Group, is
confident that the Blendomat can still run for at least 10
more years!
Raviraj Industries in Yavatmal, Maharashtra, has the
unique honour of having a DK 715 running at 30 kg/hour
with a hank of 0.095 Ne. The card processes 44 mm 100%
polyester fibres of 1.4 denier. Mr Mahesh Agarwal, Di-
rector, informed that the card was imported as a re-sale
from and says even today that “the cards are giving the
best price-performance ratio to us”.
TT Limited (unit - Gajroula Spinning Mills) is a 15,000 spin-
dle unit in Uttar Pradesh, having 8 DK 740 cards delivered
in 1992-93. The cards are still running at production rates
of 45 kg/hour with a cylinder rpm of 480. The mill pro-
duces 8.5 tons of quality yarn every day. The mill also has
5 DK 780 cards delivered in 1995, running at similar pro-
duction rates. . Mr B C Jain, Vice-President proudly said,
“We are glad we took the decision to buy Truetzschler
machines“.
The many examples above show that the technology sold
by Truetzschler almost 25 years ago is still giving custom-
ers the satisfaction that they made the right decision of
purchasing Truetzschler machinery.
The DK 740 cards at TT were amongst the first lot made
by Truetzschler India Private Limited, which was formerly
known as Trumac Engineering Company Private Limited.
In India, the manufacturing partnership of Truetzschler
with A.T.E. is celebrating 40 years this year. The ‘Customer
First’ value of both the companies has always been the
driving force for creating trust among Indian customers.
It is this trust shown by valuable customers that has in-
spired Truetzschler and A.T.E. to continue providing the
best technology with innovative features that no others
have. With Truetzschler, it is truly apt to say that OLD IS
GOLD!
BRAND UPDATE

Moody’s Upgrade Turns Sentiment Around For Rupee
Falling US Dollar, Flattening US yield curve and an unabat-
ed rally in equities is a phenomenon we have got used to
in the past nine months ever since thereflation trades fiz-
zled out. Global Equities have continued to rally, unfazed
by geopolitical tensions in Korea and the Middle East, rate
hikes and balance sheet reduction by the US Federal Re-
serve, political turmoil in Spain, political stalemate in Ger-
many, concerns over high debt levels in China. The mar-
kets seem to have taken all negative news in its stride.
The euphoria, however, is not completely unjustified as
Global growth has been the strongest in many years. The
Purchasing Manager’s Index (PMI) is higher than 50 (indi-
cating expansion) in more than 90% of the major econ-
omies worldwide for the first time since 2011. It is also
for the first time in many years that major global central
banks are moving in unison towards gradually withdraw-
ing the unprecedented monetary policy measures that
have been in place since the great financial crisis. Mon-
etary policy divergence between the US and rest of the
major economies was the primary reason for US Dollar
strength. The convergence in monetary polices is there-
fore negative for the US Dollar. The economic data sur-
prises (actual data versus consensus expectations) from
the UK, Eurozone and Japan have been positive whereas
US data has been consistently missing estimates off late.
The US Federal Reserve has also played its part in com-
municating its policy stance effectively and preparing the
markets beforehand for impending rate hikes and bal-
ance sheet reduction. This has ensured that rollback of
stimulus does not spook markets. Inability of the Trump
administration to push through reforms has also put a lid
on the US Dollar and US yields.
Amid a weaker US Dollar globally and buoyed by Moody’s
upgrade of India’s sovereign rating last week, the senti-
ment in Rupee has again turned around (which had been
temporarily soured by concerns over rising current ac-
count deficit due to falling exports and rising global crude
prices). November has seen the strongest inflows into
equities since March (close to USD 3Bn) and FPI inflows
into the domestic debt markets have continued for the
eleventh straight month. This is also the first instance
since March that equity has outperformed debt in terms
of FPI inflows. Since the upgrade, the Rupee has appreci-
ated from 65.30 to 64.35. Near term outlook on the Rupee
is likely to be shaped by four factors. First, the US term
premium; There is a strong correlation between US term
premium and ADXY (index for basket of Asian currencies).
The US yield curve could steepen if US tax reforms get
through and this could be a major negative for EM cur-
rencies. In addition to deficit funded tax reform (if it gets
through), higher defense spending and hurricane related
expenses would also increase supply of US treasuries
next year. This could lift longer-term rates, especially as
the Federal Reserve would no longer be rolling over its
maturing holdings. Second, fiscal slippage; Uncertainty
around the indirect tax collections could result in gov-
ernment missing its fiscal deficit target of 3.2% for this fi-
nancial year. Third, global crude prices; the OPEC would
most likely extend production cuts till late 2018 but this is
already factored in the price to a great extent. However,
a spike in WTI above USD 60 per barrel would ring alarm
bells on the current account front. Fourth; Gujarat Elec-
tions outcome; Though the BJP is likely to emerge victo-
rious, the markets will keep an eye on the final tally of
seats. If the BJP gets less than 105 seats, it could possibly
trigger a sell off in domestic stocks and bonds. The RBI is
likely to maintain status quo in its policy on 6th December
and the US Federal Reserve is almost certain to hike the
overnight Fed funds rate by 25bps in its policy on 13th
December. If the Rupee appreciates in line with Asian and
Emerging market currencies, we would see limited inter-
vention from the central bank. 64.35 was the breakout
zone and would be a very crucial support. Break and close
below 64.35 could open room for further down side.
It would be difficult for the ECB to ignore the pick up in
growth in Eurozone and therefore its commentary is like-
ly to turn more hawkish from hereon. Trimming of asset
purchases is likely to push yields in Eurozone higher es-
pecially for peripheral bonds. The deadlock in Germany
could end with announcement of reelection and that
could possibly strengthen the position of the right wing
nationalist party, AFD. The Euro could come under pres-
sure in that scenario. A minority government of CDU/CSU
and the Greens with outside support from the FDP is an
option but it would be a weak coalition.
The Sterling would continue to be driven by Brexit related
headlines. The UK and EU are close to an agreement on
the divorce bill and this could open doors for trade nego-
tiations. This is a positive development and could prop up
Sterling. 1.3150 would be an extremely crucial support on
the down side.
Mr. Abhishek Goenka
(CEO & Founder : IFA Global)
ECONOMY UPDATE

If the United States wants a free and open Indo-Pacific, as
Secretary of State Rex Tillerson has urged and U.S. Presi-
dent Donald Trump and Japanese Prime Minister Shinzo
Abe discussed at their recent meeting in Tokyo, no two
powers will be as important as India and Japan.
The two countries are among the most concerned coun-
tries aboutthe securityin theregion and are also increas-
ingly ready to work with each other on it. The relationship
between the two countries— historically strategically dis-
tant—has grown increasingly robust under the steward-
ship of Indian Prime Minister Narendra Modi and Abe,
with regular high-level summitry Abe traveled to Delhi
to visit Modi last month combined with increasingly fre-
quent and deepening exchanges at the diplomatic, de-
fense, and business levels.
One reason, the two countries are coming together is a
common strategic anxiety about China’s rise, particularly
its foreign policy
ambitions in
Asia. For them,
Beijing’s mari-
time assertive-
ness in the East
and South China
Seas, as well
as the Indian
Ocean region,
and its push
to expand its geopolitical influence beyond East Asia
through its Belt and Road Initiative (BRI) and Asian Infra-
structure Investment Bank (AIIB) are particularly alarm-
ing. India and Japan, in response, have come to share a
sense of purpose in promoting the current order in the
region, which is based on transparent institutions, good
governance, and international law which benefits them
by ensuring secure supply chains and fair access to re-
sources.
In addition to the two countries’ shared concerns about
the rise of China, there is also anxiety that U.S. credibility
is weakening. Despite the efforts of the Barack Obama’s
administration’s “rebalance” to the Asia-Pacific,
Washington has been unable to mitigate regional con-
cerns that its influence is diminishing. Such sentiment
existed before Trump’s election as President, but it has
been magnified by the Trump White House’s America
First foreign policy that relies on protectionism and trans-
actionalism rather than a more comprehensive approach
to the region. The withdrawal from the Trans-Pacific Part-
nership (TPP)—which has recently been largely agreed to,
in principle by the 11 remaining states in the deal—has
further fueled uncertainty among U.S. partners and allies.
Although the United States remains engaged in the re-
gion, through a host of bilateral and trilateral frameworks,
Delhi and Tokyo see the importance of building comple-
mentary diplomatic relationships that largely align with
Washington but are not led by the United States. The two
have created the Japan-India-Australia trilateral dialogue,
which exists independently from frameworks inclusive of
the United States. This mechanism, which works at the
bureaucratic level, allows Canberra, Delhi, and Tokyo to
look at shared perspectives on regional security and syn-
ergies on issues such as capacity building and coopera-
tion on humanitarian assistance and disaster relief. And
in September, both sides agreed in a joint statement to
align their two regional strategies: Japan’s Free and Open
Indo-Pacific Strategy and India’s Act East Policy.
Tokyo’s approach focuses on aligning its evolving security
and defense posture, which it dubs proactive contribution
to peace, with a more expansive vision of the region’s key
supply chains, stretching from East Africa to Hawaii. Ja-
pan’s embrace of the “convergence of two seas”—as first
outlined by Abe more than a decade ago—complements
India’s regional approach, called Act East. This policy is an
evolution of sorts from India’s former policy of Look East
and aims to enhance India’s strategy in East Asia through
stronger links to countries in the Association of Southeast
Asian Nations especially Myanmar, Singapore, Vietnam,
and of course Japan. China’s rapid rise and growing might
in the area has created concern in Delhi and prompted
the need for a stronger regional approach.
On the security and defense side, there has likewise been
much momentum. Japan’s Self-Defense Forces continue
to increase cooperation with the Indian military, especially
on maritime security issues. Tokyo and Delhi have inked
deals on the sharing of military information and the ex-
change of defense technology. There has also been pro-
gress on finalizing India’s long-delayed plans to purchase
Japan’s US-2 amphibious plane, a move that would be a
building block for more defense cooperation in the com-
ing years but has been held up for years due to India’s de-
sire to drive down the price per unit as well as questions
on the advisability of transferring defense technology. It
appears that this deal may soon come through—as indi-
cated by increasing optimism on the issue in successive
Abe-Modi summits—and would represent a key next step
in the strategic relationship between India and Japan.
In some ways, Japan and India’s friendship is strengthen-
ing their ties with the United States as well. In 2016, Delhi
and Washington concluded a long-anticipated Logistics of
Exchange Memorandum Agreement, which allows each
India - Japan Asia’s Most Strategic Friendship
GLOBAL FOCUS

country to use the others’ facilities for refueling, repairs,
and other logistical matters. Meanwhile, Tokyo has been
dovetailing its efforts to improve defense with Delhi with
enhancements in the U.S.-India relationship. And a few
months ago, Japan’s Maritime Self-Defense Forces oper-
ated alongside the U.S. and Indian navies in the annual
Malabar naval exercises. After participating as an ad hoc
member for several years, Japan became a permanent
member of the exercises in 2015. This year’s Malabar ex-
ercise in the Bay of Bengal brought together more than 20
ships, including Japan’s largest naval vessel, the JS Izumo,
and nearly 100 aircraft from the three countries. Indeed,
Malabar has been a catalyst for growing security coopera-
tion between the United States, India, and Japan and has
been complemented by a series of high-level diplomatic
engagements, including a meeting of their foreign minis-
ters in September in New York on the sidelines of the U.N.
General Assembly.
In turn, trilateral security cooperation has led to growing
convergence between Washington and Delhi on security
matters, including on Afghanistan and maritime security.
In September, U.S. Secretary of Defense James Mattis vis-
ited Delhi and stressed the importance of trilateral part-
nerships in the region, with Japan being the most impor-
tant.
Indeed, despite its longstanding attachment to nonalign-
ment, India has been increasingly emboldened under
Modi to take a more forceful role in the Indo-Pacific. On
the diplomatic side, Delhi has been unapologetic about
its reservations about China’s BRI and refused to send
any representatives to Beijing’s large inaugural BRI forum
earlier this year. On the security side, Delhi has ramped
up ties with the United States and Japan and also refused
to back down militarily during a tense dispute with China
this past September over disputed territory in neighbor-
ing Bhutan. Moreover, Delhi unambiguously signaled its
concerns with Beijing’s increasing maritime assertiveness
by agreeing this week to resume quadrilateral discussions
with the Australia, Japan, and the United States—a move
Beijing is sure to see as provocative—after a ten-year
pause.
There is still plenty of room for even greater cooperation
between Delhi and Tokyo, particularly while both remain
wary of China. Delhi sees Tokyo as a natural partner, with
growing defense capabilities that has developed and nur-
tured a number of key relationships in the region. And
Tokyo sees Delhi as a crucial geopolitical balancer that,
despite some difference in strategic thinking, is increas-
ingly willing to step up and contribute to regional security
beyond its intractable conflict with Pakistan.
Although India and Japan share common concerns, there
is less clarity on how their strategies will converge in prac-
tice. From a maritime security perspective, Japan under-
standably remains predominantly concerned with open
sea-lanes and checking China’s assertive behavior in the
East and South China Seas. India, meanwhile, remains fo-
cused on the Indian Ocean region, where China has ex-
panded infrastructure and investment in Bangladesh, the
Maldives, Pakistan, and Sri Lanka.
But these differing regional priorities need not be a point
of contention. Indeed, both sides should recognize that
their interests in the expansive Indo-Pacific are comple-
mentary—that they cooperate on many issues related to
maritime security without duplicating efforts. For exam-
ple, both sides should routinely share their operational
capabilities, for example, in defense and coast guard
equipment and through training and strategies for build-
ing capacity in South and Southeast Asia. Such sharing
could be formalized with other like-minded partners, es-
pecially the United States and Australia, and housed with-
in the reemerging quadrilateral consultations.
Japan and India must also finalize negotiations on Delhi’s
procurement of the US-2 planes. This purchase would be
a major milestone in improving their defense, industrial,
and acquisition partnership while providing India with the
ability to patrol its vast maritime territory, including the
Andaman and Nicobar Islands. Finally, Tokyo and Delhi
should work on expanding the scope of their cooperation
beyond maritime issues by expanding exchanges and dia-
logues on such issues as counterterrorism, cybersecurity,
and the protection of critical infrastructure.
Robust cooperation between
India and Japan has the po-
tential to promote transpar-
ency, open sea lines, and
adherence to international
law in the region. But if they
fail, states there will inevi-
tably retrench to their nar-
rower national interests and
smaller regional blocs—a
scenario that will favor Bei-
jing’s approach to
erode mini-lateral
groupings it sees
as antithetical to
its interests.
GLOBAL FOCUS
Arvind Sinha - CEO
Business Advisors Group, Mumbai
arpsinha09@gmail.com
lionasinha@gmail.com

November 2017 issue

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