apparelindia - Apparel Export Promotion Council

Vol.02 Issue No.07, March 2014
RNI No. HARENG/2012/45083
Postal Regn. No.GRG/37/2012-2014
ATDC organizes Hunar Ki Hunkar
AEPC participates in Sourcing at Magic
APPAREL
CONTENTS
INDIA
Editorial advisory board
VIRENDER UPPAL
Chairman, AEPC
Sudhir Sekhri
Chairman
Export Promotion, AEPC
Puneet Kumar
06 Chairman’s Letter
46 AEPC EXPORT PERFORMANCE
Apparel Export Growth remained high in Message from Shri Virender Uppal
08AEPC INITIATIVES
48 COUNTRY FOCUS
Market Focus: Chile
Information on the most recent
initiatives undertaken by AEPC
Secretary General, AEPC
Sameer Pushp
Senior PRO, AEPC
22 ATDC UPDATES
54 BRAND NEWS
31 DISHA UPDATES
58 aePC NOTIFICATIONS
32 INDUSTRY NEWS
62 APPAREL INDIA
Advertising & Subscription Details
Updates on ATDC Initiatives
News from the Indian Market
Interview of Shri Ashok Logani, Chairman
DISHA Sub-Committee
Puneet Kumar
EDITOR
ANNOU IYER
EXECUTIVE EDITOR
Printed by TrendLAB Fashion Publishing Pvt. Ltd.
& Published by Apparel Export Promotion Council,
sponsored by Govt. of India, Ministry of Textiles.
January Month of FY 2013-14
News from the Indian Apparel Industry
Updates on Government Notifications
44 LOGISTICS ARTICLE
Cutting down on logistics costs: Emerging
wide avenues for Apparel Exporters
Printed at Rakesh Press, A-22, Sector-68,
Noida-201 301, Uttar Pradesh, India and Published
at Apparel Export Promotion Council, Apparel House,
Sector 44, Gurgaon, Delhi NCR, India.
Editor: Puneet Kumar
Published by
Content & design
Apparel Export Promotion Council
Apparel House, Sector 44, Gurgaon, Delhi NCR, India
Tel: 91 124 2708000-03 Fax: 91 124 2708004-05 Website: www.aepcindia.com
FATEX 2014, scheduled to take place from 03 to 05 July 2014,
is regarded as a showcase of global clothing and accessories
sourcing, where buyers come primarily to find out solutions, for
their manufacturing projects. Visitors mostly represent ready-towear brands, specialised chains, hyper/supermarkets, wholesale
importers, garment manufacturers, agents etc. For 2014, besides
China, Bangladesh, India and Pakistan, Asia’s offer will be
completed by exhibitors from Vietnam, Cambodia and Indonesia.
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or any other particulars of the firms featured in this monthly.
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APPAREL INDIA
5
Letter from
the Chairman
APPAREL
the same period of previous FY
3.
The textile sector in India will no longer be eligible
for export subsidies by the end of 2018, as it has become
competitive, is a worrying matter. Article 27.6 of WTO- ASCM
agreement suggests phasing out of subsidies for products which
have reached export competitiveness. The textile sector is
reported to have crossed 3.25 percent share in the global market
and therefore this sector has gone into the area of "globally
competitive" as defined by WTO Law. Therefore the Indian
textile sector will not be eligible for export subsidy from by the
end of 2018. We are working on the ways to reorient the subsidies
in a manner that do not harm us much. Government, at highest
level, is seized of the matter and doing their best to protect
Textiles Sector so that the employment and manufacturing are
not hit hard.
4. Till the new Government convenes and announces new FTP
and Budget, the benefits/schemes to the garment sector will be
continued. I would like to inform my fellow members that the
DGFT has issued a Notification No. 69 (RE–2013)/2009-2014,
dated, 19th February 2014, announcing the continuation of the
Foreign Trade Policy 2009- 14 till further orders. Therefore, the
existing benefits of FTP would continue to be available to the
garment exporters beyond 31st March, 2014.
My dear fellow exporters,
I would like to begin with the good news first, on
behalf of the Textiles and Clothing Industry I welcome the move
to extend the 2% duty credit scrip under the Market Linked
Focus Product Scrip (MLFPS) for RMG sector (2% Duty credit
scrip, HS 61 & 62) to EU and USA for exports from 01/04/2014
till further orders. The incentive to RMG products which have
the highest employment intensity and potential was the need of
the hour. I am sure that this decision of the Government would
surely go a long way to offset infrastructure inefficiencies and
other associated costs involved in manufacturing and marketing
of these products. It is noteworthy that Chapter 61 & 62 covers
all the garment products and our exports to EU & USA covers
almost 65% of our total garment exports.
2. Friends, we are at the fag end of this fiscal year and Industry
captains are sprinting fast to reach the most ambitious target set
for AEPC this year. With the current growth of over 16.4% I am
hopeful we will be cruising past 15 billion US $. The Apparel
exports for the month of January 2014 have registered the growth
of 17.4% and the cumulative export in dollar terms for AprilJanuary of the FY 2013-14 has increased by 16.4 per cent over
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INDIA
5.
As a policy decision, Government has apparently taken
a conscious call that the new FTP will be announced by the new
Government after the general elections. Our important proposals
are waiting for considerations. We have sent detailed proposal
on the 5% duty credit scrip on import selected specialty fabrics
urgently required for RMG export, continuing of all subsidies
available in the year 2014-15, Separate Chapter for 7.5 %
export credit across the board under priority sector lending for
the entire textile sector, Upward revision of All Industry Duty
Drawback Rates based on realistic duties, taxes and levies paid,
etc.
6. Government needs to work on the broad reaching reforms
for the garment Industry which must entail multifold strategy
from simplification of labour laws to making available credit
to industry at affordable rates along with the ensuring the
raw material availability and import of specialty fabric by
incentivizing through duty credit scrip of 5%. This sector has
the potential to help country reach a balanced economic growth
that creates jobs, boosts manufacturing and reduces inequality.
7. A number of inhibiting factors have retarded the growth of
otherwise very promising apparel sector, particularly, increasing
input cost, tight credit policy, high interest rates, rigid and out
focused labour laws, poor infrastructure, high cost of power,
increasing cost of wages, availability of specialty fabric in
India, non- payment of incentives like dutydrawback, etc are all
adversely affecting our competitiveness. We have taken up these
issues with the Government at the appropriate platform. I request
Government to consider some of our demands on priority basis.
8. Measures like, Power capacity augmentation of 234,6000
MW over ten years, rolling of fuel subsidy worth Rs. 35,000
crores in 2014-15, 3% interest subvention to agriculture sector
for 2014-15 & reducing the effective rate of interest on farm
loans to 4 per cent, financing of the deficit in current account
through FDI and other investments from overseas, support to the
micro, small and MSME sector, building three new industrial
corridors, inclusion of Rs 11,200 crore capital in Public Sector
Banks(PSB’s) and reduction in excise duty on the capital goods
are some of the positive initiatives, which will give big boost to
the garment sector. As the room for making big announcements
in interim budget was limited; overall it is a great effort from the
Government to balance growth amidst the evolving economic and
political climate.
9. I have taken up the matter with Central Board of Excise and
Customs for allowing imports, earned by the exporters through
duty credit scrip / SHIS, without insisting for payment of custom
duties partly in cash. It has been requested to them that in the
busy season, it is affecting our export obligations. Realizing the
Current Deficit Account problem of the Government of India, it
has been requested that scrips may be allowed, to be utilized
fully for offsetting custom duties, where these are used on
Actual User Basis and extend the validity suitably, wherever the
exporters have not been able to use them fully.
10. AEPC successfully participated in MAGIC Fair, Las Vegas
which was held from 17-20 February, 2014, in Las Vegas,
Nevada, USA. The India Pavilion was inaugurated by Mr. Sudhir
INDIA
Sekhri, Chairman (EP) and Mr. Puneet Kumar, IAS, SG – AEPC
in the presence of Mr. Christopher, President, MAGIC Fair
Authority and Mr. Bob Berg, Director, Magic Fair Authority
and the exhibitors. The participation was good and exhibitors
got good business. I congratulate AEPC team for having made
the participation a successful one. In the month of March 2014
AEPC is organizing BSM South Africa and BSM Chile- Uruguay
domestic front we would be organizing India International
Garment Fair (IIGF) in the month of July 2014 and India Market
Days in April 2014, I appeal to all exporters to participate in
big numbers and make use of the wonderful opportunity.
11. I also had the privilege of inaugurating the ATDC ‘Hunar
ki Hunkar’ a 2 day long event (20th - 21st February 2014)
at Apparel House, Gurgaon on 20th February 2014. The
event also featured ‘Hunar Se Rozgar’ initiative with over 22
Exporters present and nearly 1,000 youth seeking employment.
The ‘Skilling & Upskilling’ journey by ATDC in the pilot
project period and the activities and initiatives to achieve the
massive target of 2,50,000 candidates in 5 years was showcased
in ‘Hunar ki Hunkar’- Exhibition-cum-Display. I congratulate
the ATDC for the grand show. These efforts by ATDC, I am sure
will go a long way in strengthening our Industry.
12. Friends, as the spillovers from the global financial market
volatility continue to pose a significant risk, need is to work
together in synergy with Government & Industry tirelessly
to nurture and strengthen Garment Industry. Let this be our
collective resolve and conviction!
Shri Virender Uppal
Chairman AEPC
DGFT extends sops for garment exports; AEPC hails move
Apparel Export Promotion Council (AEPC), has welcomed the move to extend the 2% duty credit scrip under the Market Linked
Focus Product Scrip (MLFPS) for RMG sector (2% Duty credit scrip, HS 61 & 62) to EU and USA for exports from 01/04/2014
till further orders. "The incentive to RMG products, which have the highest employment intensity and potential, was the need of
the hour. I am sure that this decision of the Government would surely go a long way to offset infrastructure inefficiencies and other
associated costs involved in manufacturing and marketing of these products," said Chairman AEPC, Shri Virender Uppal, in his
statement recently. DGFT in its notification dated 27.02.14 amended the Chapter 3 of Foreign Trade Policy. Chairman AEPC
said, "We are at the fag end of this fiscal year and Industry captains are sprinting fast to reach the most ambitious target set for
AEPC this year. With the current growth of over 16.4%, I am hopeful we will be cruising past US$ 15 billion." "It is noteworthy
that Chapter 61 & 62 covers all the garment products and our exports to EU & USA covers almost 65% of our total garment
exports," he added. Shri Uppal also lauded the DGFT for expanding the list of products for textiles and leather under the above
scheme. It is a well-timed move, which will have the far reaching benefits in terms of boosting the exports. "High input costs and
slowdown in global markets were adding to the stress. I am sure the present initiative of DGFT would certainly help in easing the
pressure to a considerable extent to our sector," Shri Uppal added.
APPAREL INDIA
7
AEPC Initiatives
Initiatives
AEPC
Garment exports to touch US$ 15 billion in
this fiscal: Shri Virender Uppal
Chairman AEPC inaugurates Garment Technology Expo 2014
Shri Virender Uppal, Chairman AEPC inaugurated the Garment Technology Expo
(GTE) 2014, New Delhi International at NSIC Exhibition Complex in New Delhi on
28th February 2014. Shri Puneet Kumar, IAS, Secretary General, AEPC was the Guest
of Honour.
Garment Technology Expo (GTE) 2014, aims to offer a complete sourcing platform to
apparel manufacturers. The exhibition focuses on a wide range of garment machinery,
accessories and support services from India and different parts of the world. Latest
technology, live demonstrations, new products launches and technical seminars
will be an integral part, of the show. The exhibition provides an interface between
the industry members and technology providers in all segments. Chairman AEPC
at the onset thanked Shri Inderjit Sahni, Shri Ricky Sahni, Smt Rathi Sahni and
Shri Ambrish Chopra for inviting at the inaugural function as the Chief Guest.
Shri Virender Uppal, Chairman AEPC at the inauguration of Garment Technology Expo 2014 at the NSIC exhibition ground in New Delhi on 28th
February 2014. Shri Puneet Kumar, SG AEPC, was the Guest of Honour.
Chairman AEPC, Shri Uppal in his inaugural address
stated that, “I would also take this opportunity to
congratulate team of GTE for their sincere efforts for
organization of the 19th edition of Garment Technology
Expo International, which will focus on a wide range of
garment machinery, accessories and support services
from India and different parts of the world.” The Garment
Technology Expo International will provide a platform
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APPAREL INDIA
for our industry to showcase its potential and capacity
building and will focus on a wide range of garment
machinery, accessories and support services from India
and different parts of the world. Exporters should take
advantage of this exhibition, he added.
Elaborating on the garment exports performance for the
current fiscal, Shri Uppal informed that exports have
played a pivotal role in Indian Economy’s growth.
Lighting of the lamp by Shri Puneet Kumar, SG AEPC
It contributes 16% to India’s GDP. India’s garment exports
have registered an export performance of US$ 12.00 billion
from US$ 10.31 billion registering a growth of 16.43% in the
period April 2013 – January 2014, compared to the same
period during the last financial year. He further hoped that,
garment exports would be touching US$ 15 billion in the
current fiscal in the first time in India history.
This growth would not have been possible without the good
technological support as well.
The long term vision of our Government is to make India
a major player in the world trade by 2020. The growing
stature of India is leading to a new role of leadership in the
international trade. Under the backdrop of complex global
economic environment, the clouds of uncertainty are subject
matters of discussion everywhere and also creating certain
fear amongst us. However, the Government is very conscious
about these developments and also to prepare the industry to
perform better; to push exports and keep the current account
deficit within the manageable limits.
Highlighting on the key issues facing this industry today
Chairman AEPC stressed that the growing competition
from other low cost production centres, especially in Asia,
currency volatility, need for investment in modernization and
R&D, better availability of raw materials, credit at reasonable
rates and skilled man power and improving productivity.
Two other issues critical to not only this industry but
overall manufacturing are need for reducing infrastructure
bottlenecks and transaction costs.
Today, India wants to be looked at, not only as a good sourcing
destination, but as a good trading partner. We are trying
to forge ties with all the major trading blocks in Asia and
World. The exhibitors of the fair would show our strengths
in integrated supply chain, innovative technology in Home
Furnishing and knitting technology to meet changing global
demands, he added.
Chairman AEPC, Shri Uppal appealed to the gathering to
participate in Source Zone, a similar fair that AEPC would
be organizing during November, 2014 at Apparel House,
APPAREL INDIA
9
AEPC Initiatives
Initiatives
AEPC
Textile sector no longer eligible for export
subsidies – Commerce Secretary
Textile sector is no longer eligible for export subsidies as it has reached the export
competitiveness in global market share, informed Shri Rajeev Kher, Commerce Secretary
in New Delhi recently...
Chairman AEPC Shri Virender Uppal addressing the inauguration of
GTE'14
Gurgaon. Chairman AEPC also advised GTE to come up with
the problems that they confront and it will be taken to the
Government for resolution at the right platform.
Speaking at the inauguration Shri Puneet Kumar, IAS, SG
AEPC stated that, “Today is a big day for the garment Industry
as technology contribute in a big way in strengthening the
garment technology mission in India. It is an integral part of
the textiles value chain and our ambitions that we nurture for
this industry will be a remote possibility unless technology
powers and drives the change.”
Replying to the query of the garment exporter on why India
can’t be a clothier for the entire world despite multiple
advantages? Shri Kumar replied by saying, technology is the
answer and we need to enhance our productivity with aid of
technology. Shri Kumar also lauded the efforts of organizers to
bring the multiple variants to the entire textiles value chain at
one platform. Shri Kumar expressed his concern on the pace
of development and bringing down the appropriate technology
in India and said we are way behind our neighboring
competitors and need is to enhance the pace of adopting and
building in new technologies in India.
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SG AEPC also appreciated the efforts made by ATDC for
training people in large numbers in technology & skill
who can use this technology in right manner for powering
the desired growth. He further said that expectations of the
nation form AEPC and textiles Industry is much higher and
suggested that GTE and AEPC can contribute to a meaningful
amalgam by working in conjunction on for leveraging the
complementary.
The exhibitors at GTE ’14 covered a wide range of Machinery
manufacturers and service providers in almost all related
sectors of fabrics, sewing, knitting, dyeing, laundry, fabric
and garment printing, finishing, embroidery machinery as
also spares, attachments and embellishments, Accessories,
IT Services, & Trade Media.
Visitor Profile of the participants included: Top Exporters,
Garment Manufacturers, Buying Houses, Fashion Industry
People, Designers, Engineers, Manufacturers of Home
Furnishing, etc. Product Displayed were; SEWING:
Computerized, Industrial, Over lock, Flat Lock Machines
and Spares, KNITTING: Circular, Flat, Socks and Collar
Machines, DYEING & LAUNDRY: Soft Flow, Relax
Dryers, Tumblers, Laundry and Dry Cleaning Machines,
Dyes & Chemicals, QUILTING MACHINES: Single and
Multi-head Quilting Machines, Mattress Making Machines,
FINISHING: Compacting, Steam Ironing Machines,
Conveyor Systems and Boilers, CAD/CAM: Designing,
Cutting Room and all related Software, EMBROIDERY:
Industrial, Multi-Head, Single Head and Home Machines,
Sequence Devices, TEXTILE PRINTING: Digital,
Screen and Transfer Printing Machines, FABRICS:
Indian and Imported Natural & Synthetic Fabrics, Denim,
ACCESSORIES: Zippers, Buttons, Sewing and Embroidery
Threads, Needles, Interlining, Padding, Lingerie, etc.
Shri Raghav Sharma of IIGM, Shri Madhu Kapur of
ALT, Shri Ashim Das of Mehala Machines and Shri Sudhir
Balani of Ramsson also spoke on the continuing legacy of
GTE and the important role played by the fair authorities in
ensuring technology to reach the apparel manufacturers.
Textile sector is no longer eligible for export subsidies as it
has reached the export competitiveness in global market share,
informed Shri Rajeev Kher, Commerce Secretary in New Delhi
recently. "The textile sector in India is no longer eligible for
export subsidies as it has become competitive. Article 27.6
of WTO ASCM agreement suggests to phase out subsidies for
product, which has reached export competitiveness," Kher
said at the 4th CII Export Summit 2014 held in New Delhi.
It is noteworthy to know that the phase out time will end in
2018. He said, "The textile sector is reported to have crossed
3.5% share in the global market on a certain point of time
then therefore the textile sector has gone into the area of
globally competitive as defined by WTO Law. And so Indian
textile sector is not now eligible for export subsidy.( After
December 2018) Sooner or later we see more sectors reaching
to that phase." A product is called competitive when its share
reaches at least 3.25% in world trade for two consecutive
calendar years. "We have to move out of a purely incentive
based export model to a competitiveness based export model,"
said Kher. Highlighting that export subsidy is not a long term
solution, Kher informed that the benefits that India enjoys at
present under Annex VII of the WTO Agreement on Subsidies
and Countervailing Measures (ASCM) may soon come to
an end. "The WTO prohibits the use of export subsidies on
manufactured products as a general rule, but the countries
which are listed in Annex VII of the ASCM, are exempted from
the prohibition. This exemption is available until GNP per
capita of a country reaches US$ 1,000 in constant 1990 dollars
for three consecutive years," he added. He also said that
export today is an important tool for economic development.
To enhance India's exports he emphasized the importance of
promoting both 'Brand India' and 'Indian Brands'.
EXPORT PROMOTION EVENTS TO BE HELD DURING THE F.Y. 2014-15
S. No. Name of the Event
Proposed Dates
India Market Days at Apparel House, Gurgaon
Fatex Fair, Paris, France (Under MDA Scheme)
Hong Kong Fashion Week, Hong Kong
White Label, Berlin, Germany (Under MDA Scheme)
i) 24-25 April, 2014
ii) 4-5 Sep., 2014
iii) 13-14 Nov., 2014
3-5 July, 2014
7-10 July, 2014
8-10 July, 2014
6
53rd India International Garment Fair, Pragati Maidan, New Delhi
Apparel Show in International Fashion Fair Tokyo, Japan (IFF)
14-16 July, 2014
23-25 July, 2014
7
Sourcing at Magic, Las Vegas, USA
August, 2014
8
Buyer Seller Meet at Barcelona & Madrid, Spain
Buyer Seller Meet at Bogota & Medellin,
Colombia and Sao Paulo, Brazil
Source Zone at Apparel House, Gurgaon
September, 2014
Bogota : 9th October, 2014
Medellin: 10th October, 2014
Sao Paulo : 13th - 14th Oct’ 2014
13-15 November, 2014
1
2
3
4
5
9
10
11
12
13
14
15
16
Australia International Sourcing Fair, Melbourne, Australia
(Under MDA Scheme)
Hong Kong Fashion Week, Hong Kong
Tex-Trends India at Pragati Maidan, New Delhi
Sourcing at Magic, Las Vegas, USA
Buyer Seller Meet at Monte Video, Uruguay and Santiago, Chile March, 2014 - Santiago, Chile
Buyer Seller Meet at Cape Town, South Africa
18-20 November, 2014
January, 2015
28-30 January, 2015
February, 2015
March, 2014 - Montevideo, Uruguay
March, 2015
APPAREL INDIA
11
AEPC Initiatives
Initiatives
AEPC
AEPC’s participation at “SOURCING
at MAGIC”
The Indian Pavilion at Sourcing at Magic Fair was inaugurated by Shri Sudhir Sekhri, Chairman (EP) and Shri Puneet Kumar, IAS Secretary General
in the presence of Mr. Christopher, President and Mr. Bob Berg, Vice President, Magic Fair Authorities on 17th February 2014 at Las Vegas, USA.
AEPC successfully participated in Magic
Fair, Las Vegas which was held from 17 to
20 February, 2014, in Las Vegas Convention
Centre, Las Vegas, Nevada, USA. The
India Pavilion was inaugurated by Shri
Sudhir Sekhri, Chairman (EP) and Shri
Puneet Kumar, IAS, Secretary General,
AEPC in the presence of Mr. Christopher,
President, Magic Fair Authority and Mr.
Bob Berg, Director, Magic Fair Authority
and the exhibitors...
SOURCING at MAGIC is North America’s largest and the
most comprehensive sourcing event, reflecting the fashion
supply chain at its most complete. It offered unmatched access
to over all major sourcing countries. SOURCING at MAGIC
showcased more than 1100 apparel, accessories and footwear
resources, conveniently merchandised by country and
category: contract and original design manufacturers; fabric,
trim and component suppliers; and service and technology
providers.
17 Countries from across the world exhibited their products.
The exhibitors were from: Egypt, Korea, Pakistan, Taiwan,
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Magnolia, India, Bangladesh, Hong Kong, Colombia, Peru,
Vietnam, USA, Turkey, Mexico, Indonesia, Premier China and
Guatemala. The products on display included, Blouses, Skirts,
kidswear, Shirts, Scarves, Stoles, Shawls, Sportswear, Muffler,
Leather Belts, Menswear, Bathrobes & Fashion Jewelry, T-shirts,
Polo shirts etc. The exhibition area occupied was 7500 Sq. ft in
which 71 companies displayed their products in75 booths.
The Magic fair attracted large number of buyers who showed their
interest in buying Womenswear, T-shirts, fashion jewelry, woven
gents shirts, woven ladies wear, scarves & shawls etc.
With the efforts of AEPC and fair authorities, business deal to the
tune of US$ 21.20 Million was negotiated.
A meeting of the delegation was held on 17th February, 2014
with Mr. Christopher, President, Magic Fair Authority and Mr.
Bob Berg, Director, Magic Fair Authority. During the meeting,
AEPC requested that on 75 booths bare space, AEPC should
be given 2 complementary booths space instead of the present
complementary 1 booth space. The delegates also requested that
early bird discount should be given to AEPC for the payments
being done for purchasing bare space from Magic Fair Authority.
And the India Pavilion should be allotted prime location in front
of the entrance in the show.
Mr. Christopher was very positive on the demands put forth
by AEPC and informed that he will consider and revert on the
decision of the Magic Fair Authority for the points raised by the
The delegation led by Shri Sudhir Sekhri, Chairman (EP) and Shri Puneet Kumar, SG AEPC at the MAGIC Fair.
AEPC delegation. The delegation members attended seminar on
Spring/ Summer – 2015 Global Trend Forecast [Women’s, Men’s
and Accessories] on 18th February, 2014. The presentation of
Ms. Lilly Berelovich, Founder & Chief Creative Officer, Fashion
Snoops made a presentation on Spring / Summer 2015 Trend
Forecast in a very simple way and also emphasized that India is
emerging as a future destination for sourcing garments by major
buyers. The delegation members requested for sending details to
AEPC for organizing fashion forecast seminars in India by M/s
Fashion Snoops. Once AEPC receive the details, we can plan for
organizing fashion forecast seminars in India accordingly.
Some of the exhibitors were of the opinion that the India Pavilion
should display all types of leather garments, fashion accessories,
home furnishings along with readymade garments. In the
circumstances, we can request other textile EPCs / CLE for
collective participation in the India Pavilion of AEPC in future.
Overall, the Indian exhibitors were happy with the response
received by them during the fair and they are expecting good
business generation in the near future from the contacts, which
they have established during the Magic fair. It was a unique
opportunity for the exhibitors—from worldwide leaders to local
U.S. suppliers— to build business through exposure to thousands
of sourcing executives, designers, merchandising managers and
private label buyers. MAGIC successfully connected exhibitors to
the global purchasing power of tens of thousands of men’s, women’s
and children’s apparel, accessories and footwear retailers. The
Sourcing Zone was a convenient space for retail buyers, global
importers, licensees and brands to meet and conduct business
with offshore manufacturers like India and contract suppliers
from the international manufacturing countries.
USA is the largest importer of garments with imports of over US$
81 billion. India’s garment export to USA is US$ 3055 million
during 2012, which amounts to around 3.8% of USA’s total
garment imports from World.
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13
AEPC Initiatives
Initiatives
Figure: How India and comparator economies rank on the ease of doing business:
Japan
Mexico
Doing Business sheds light on how easy or difficult it is for a local entrepreneur to open
and run a small to medium-size business when complying with relevant regulations.
It measures and tracks changes in regulations affecting 11 areas in the life cycle of
a business: starting a business, dealing with construction permits, getting electricity,
registering property, getting credit, protecting investors, paying taxes, trading across
borders, enforcing contracts, resolving insolvency and employing workers...
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APPAREL INDIA
92
China
96
Brazil
116
Indonesia
120
Regional Average (South Asia)
121
India
134
1
sample (figure 1.1). While this ranking tells much about
the business environment in an economy, it does not tell
the whole story. The ranking on the ease of doing business,
and the underlying indicators, do not measure all aspects of
the business environment that matter to firms and investors
or that affect the competitiveness of the economy. Still, a
high ranking does mean that the government has created a
regulatory environment conducive to operating a business.
Best performer globally
132
129
124
74
54
23
59
157
Singapore (1)
Documents to export
(number)
9
9
6
8
4
3
4
9
Ireland (2)*
Time to export (days)
16
16
13
21
17
11
11
22
5 Economies (6)*
1,170
1,120
2,215
620
615
890
1,450
2,615
Malaysia (450)
Documents to import
(number)
11
11
8
5
8
5
4
10
Ireland (2)*
Time to import (days)
20
20
17
24
23
11
11
21
Singapore (4)
1,250
1,200
2,275
615
660
970
1,740
2,810
Singapore (440)
Cost to export (US$ per
container
Cost to import (US$ per
container)
DB2014
Mexico DB2014
Trading Across Borders
(rank)
DB2014
Indicator
Japan DB2014
Indonesia DB2014
Summary of Doing Business indicators for India: Trade Indicators
China DB2014
ranking on the ease of doing business based on indicator
sets that measure and benchmark regulations applying to
domestic small to medium-size businesses through their
life cycle. Economies are ranked from 1 to 189 by the
ease of doing business index. For each economy the index
is calculated as the ranking on the simple average of its
percentile rankings on each of the 10 topics included in the
index in Doing Business 2014: starting a business, dealing
with construction permits, getting electricity, registering
property, getting credit, protecting investors, paying taxes,
trading across borders, enforcing contracts and resolving
insolvency. The ranking on each topic is the simple average
of the percentile rankings on its component indicators (see
the data notes for more details). The employing workers
indicators are not included in this year’s aggregate ease of
doing business ranking, but the data are presented in this
year’s economy profile.
The aggregate ranking on the ease of doing business
benchmarks each economy’s performance on the indicators
against that of all other economies in the Doing Business
sample (figure 1.1). While this ranking tells much about
the business environment in an economy, it does not tell
the whole story. The ranking on the ease of doing business,
and the underlying indicators, do not measure all aspects of
the business environment that matter to firms and investors
or that affect the competitiveness of the economy. Still, a
high ranking does mean that the government has created a
regulatory environment conducive to operating a business.
189
Ease doing business ranking
Brazil DB2013
For policy makers trying to improve their economy’s
regulatory environment for business, a good place to start is
to find out how it compares with the regulatory environment
in other economies. Doing Business provides an aggregate
Russian Fedration
India DB2013
The business environment
53
India DB2014
In a series of annual reports Doing Business presents
quantitative indicators on business regulations and the
protection of property rights that can be compared across
189 economies, from Afghanistan to Zimbabwe, over time.
The data set covers 47 economies in Sub-Saharan Africa, 33
in Latin America and the Caribbean, 25 in East Asia and
the Pacific, 25 in Eastern Europe and Central Asia, 20 in
the Middle East and North Africa and 8 in South Asia, as
well as 31 OECD high-income economies. The indicators
are used to analyze economic outcomes and identify what
reforms have worked, where and why.
This economy profile presents the Doing Business indicators
for India. To allow useful comparison, it also provides data
for other selected economies (comparator economies) for
each indicator. The data in this report are current as of June
1, 2013 (except for the paying taxes indicators, which cover
the period January–December 2012).
The Doing Business methodology has limitations. Other
areas important to business—such as an economy’s
proximity to large markets, the quality of its infrastructure
services (other than those related to trading across borders
and getting electricity), the security of property from theft
and looting, the transparency of government procurement,
macroeconomic conditions or the underlying strength of
institutions—are not directly studied by Doing Business.
The indicators refer to a specific type of business, generally
a local limited liability company operating in the largest
business city. Because standard assumptions are used in
the data collection, comparisons and benchmarks are valid
across economies. The data not only highlight the extent
of obstacles to doing business; they also help identify the
source of those obstacles, supporting policy makers in
designing regulatory reform.
27
Russian Federation
World Bank report on Doing Business
Report 2014: India
AEPC
APPAREL INDIA
15
AEPC Initiatives
Initiatives
The Global Competitiveness Index (GCI)
2013–2014: India Country Profile Highlights
Down one position, India now ranks 60th, continuing its downward trend that began in 2009.
With a GCI score essentially unchanged since then, India has been overtaken by a number of
countries. Once ahead of Brazil and South Africa, it now trails them by several places and
is behind China by a margin of 31 positions, while Russia (64th) has almost closed the gap.
India continues to be penalized for its very disappointing performance in the basic drivers
underpinning competitiveness, the very ones that matter the most for India given its stage of
development. The country’s supply of transport, Information and Communication Technologies
(ICTs), and energy infrastructure remains largely insufficient and ill-adapted to the needs of
the economy (85th), despite the steady improvement that has been made since 2006...
The Indian business community repeatedly cites infrastructure as the
single biggest hindrance to doing business, ahead of corruption and
cumbersome bureaucracy. Notwithstanding improvements across the
board over the past few years, very poor public health and education
levels (102nd) remain a prime cause of India’s low productivity. The
quality of higher education is better, but enrollment rates at that level
remain very low, even by developing country standards. Turning to
the country’s institutions (72nd, down two places), discontent within
the business community remains high about the lack of reforms and
the perceived inability of the government to push them through.
Public trust in politicians has been eroding since 2009 and has now
reached an all-time low at 115th, while bribery remains deeply rooted
(110th). Indeed, India has lost almost 30 ranks on this indicator
since 2010. Meanwhile, the situation has deteriorated further on
the macroeconomic front, with India now 110th in this pillar. The
inflation rate and public deficit-to-GDP ratio were dangerously close
to double digits in 2012, and the debt to GDP ratio is the second
highest among the BRICS. Indeed, a March 2013 survey of sovereign
debt analysts revealed an increased risk of sovereign debt default
over the previous year. Another major concern is the country’s low
level of technological readiness (98th). Although businesses adopt
new technologies relatively promptly (47th), penetration rates of fixed
and mobile Internet and telephony among the population remain
among the lowest in developing Asia. Furthermore, the situation has
worsened in terms of labor market efficiency (99th), where the most
salient problem remains the dismally low participation of women in
the workforce. With a ratio women-to-men of 0.36 (137th), India has
the lowest percentage of working women outside the Arab world.
World Economic Outlook: An Update
Global activity and world trade picked up in the second half of 2013.
Recent data even suggest that global growth during this period was
somewhat stronger than anticipated in the October 2013 WEO. Final
demand in advanced economies expanded broadly as expected—
much of the upward surprise in growth is due to higher inventory
demand. In emerging market economies, an export rebound was the
16
APPAREL INDIA
main driver behind better activity, while domestic demand generally
remained subdued, except in China. Financial conditions in advanced
economies have eased since the release of the October 2013 WEO—
with little change since the announcement by the U.S. Federal Reserve
on December 18 that it will begin tapering its quantitative easing
measures this month. This includes further declines in risk premiums
on government debt of crisis-hit euro area economies. In emerging
market economies, however, financial conditions have remained tighter
following the surprise U.S. tapering announcements in May 2013,
notwithstanding fairly resilient capital flows. Equity prices have not
fully recovered, many sovereign bond yields have edged up, and some
currencies have been under pressure. Turning to projections, growth
in the United States is expected to be 2.8 percent in 2014, up from
1.9 percent in 2013. Following upward surprises to inventories in
the second half of 2013, the pickup in 2014 will be carried by final
domestic demand, supported in part by a reduction in the fiscal drag
as a result of the recent budget agreement. But the latter also implies a
tighter projected fiscal stance in 2015 (as the recent budget agreement
implies that most of the sequester cuts will remain in place in FY2015,
instead of being reversed as assumed in the October2013 WEO), and
growth is now projected at 3 percent for 2015 (3.4 percent in October
2013). The euro area is turning the corner from recession to recovery.
Growth is projected to strengthen to 1 percent in 2014 and 1.4 percent
in 2015, but the recovery will be uneven. The pickup will generally be
more modest in economies under stress, despite some upward revisions
including Spain. High debt, both public and private, and financial
fragmentation will hold back domestic demand, while exports should
further contribute to growth. Elsewhere in Europe, activity in the United
Kingdom has been buoyed by easier credit conditions and increased
confidence. Growth is expected to average 2¼ percent in 2014–15, but
economic slack will remain high.
Not yet out of the woods
Turning to risks to the forecast, downside risks—old ones discussed in
the October 2013 WEO and new ones—remain. Among new ones, risks
to activity associated with very low inflation in advanced economies,
especially the euro area, have come to the fore. With inflation likely to
remain below target for some time, longer-term inflation expectations
might drift down. This raises the risks of lower-than-expected inflation,
which increases real debt burdens, and of premature real interest
rate increases, as monetary policy is constrained in lowering nominal
interest rates. It also raises the likelihood of deflation in the event of
AEPC
adverse shocks to activity. Downside risks to financial stability persist.
Corporate leverage has risen, accompanied in many emerging market
economies by increased exposures to foreign currency liabilities.
In a number of markets, including several emerging markets, asset
valuations could come under pressure if interest rates rose more than
expected and adversely affected investor sentiment.
AEPC’s to participate in Hong Kong
Fashion Week
AEPC would is participating in the Hong Kong Fashion Week to be held from 07-10 July,
2014 at Hong Kong Convention & Exhibition Center, Hong Kong...
Targeting potential valued Buyers
ABOUT HONG
WEEK: Perfect
Sourcing
KONG FASHION
Hub for Fashion
Hong Kong is Asia's fashion hub - it is a well-established
production and sourcing centre. It is also home to a growing
community of design talent. Hong Kong Fashion Week Fair is
Biggest in Asia and second largest garment/fashion exhibition
in the world & plays a key role in the city's fashion industry,
enabling suppliers from around the world to promote their
products and image to a global audience, as well as seek
new business relationships and garner valuable industry
intelligence.
Hong Kong — Fashion Capital of Asia
HKTDC Hong Kong Fashion Week for Spring/summer is an
unrivalled garment sourcing platform and style leader of Asia.
It is the largest fair of its kind in Asia and has continued to
bring the ultimate in style and value to trade visitors from all
over the world.
Buyer attendance in the year 2013 was very enthusiastic.
17259 buyers from 76 countries and regions, the number of
overseas buyers set a new record, with the growth stemming
from emerging markets.
Buying representatives from renowned fashion brand,
leading chain stores and distributors including House of
Quirky, Cavalera, YM Inc., Jd. Com, Ninety Labels Pvt. Ltd.,
Zalora Indonesia, AEON TOPVALU Co. Ltd. Zoo Fashion
International Inc. MANGO, Tian Mu, Namshi.com, Mark
& Spencer, CT Retail, Astor & Black Custom Clothiers
(USA), Blush (Malaysia), CJ O Shopping (Korea), Etiem
Textil, S.L. (Spain), The J. Peterman Company (USA), Lewre
International Sdn Bhd (Malaysia), Peace Bird (Chinese
mainland), Souris Mini Inc. (Canada), Top Secret (Poland)
and Warmia SA (Poland), etc.
The fair organizer, HKTDC, operates a network of more than
40 offices all around the globe. It works hard to identify
quality buyers in all markets, but especially in emerging
economies, and bring them to Hong Kong so they can connect
with new suppliers, pinpoint fresh directions and evolve their
business.
VENUE
Hong Kong Convention & Exhibition Center,
Wan Chai, Hong Kong
NO. OF BOOTHS
AEPC has decided to take 50 Booths to make
“INDIA PAVILION” in order to cater to the
growing demands of the buying communities
in Hong Kong. The participation is on FIRST
– CUM – FIRST SERVED (FCFS) basis.
APPAREL INDIA
17
AEPC Initiatives
Initiatives
AEPC
AEPC’s participation in FATEX Fair,
Paris, FRANCE
AEPC to organizes Mega Apparel & Textile
Show in JFW International Fashion Fair
In order to explore France Apparel Market which is a leading country in the fashion
industry, (particularly centered around the capital city of Paris), AEPC is participating
in Fatex Fair, Paris, France to be held from 3-5 July, 2014, which will take place at Hall
2.1 in Paris Porte De Versailles, Paris, France...
Apparel Export Promotion council (AEPC) shall once again be participating in
International Fashion Fair, Tokyo scheduled from 23-25 July, 2014 along with SRTEPC,
TEXPROCIL and other EPC’s as organizing partners under the aegis of MOT. Over
23,000 trade visitors attended the IFF show last year in July, 2013...
On the basis of recommendations of the Ministry of Textiles,
Ministry of Commerce has approved funding under Market
Access Initiative for the Mega Apparel & Textile Show in
Tokyo, Japan. MAI support is for 100 booths in the fair.
Japan’s Imports of Textiles & Apparel from India and World
Table 1: Japan's RMG Import from World and India
Import
2011
2012
Japan's RMG Import from World, Yen Mn.
2477242.7
2554557.7
Japan's RMG Import from India, Yen Mn.
21609.4
India's Share in %
0.9
2013
3095874.5
23365.5
0.9
% Change
2013/2012
21.2
26620.5
13.9
0.9
--
Source: UN Comtrade, 2014
Major Importers at Jfw-Iff July-2013
Edition
ABOUT FATEX
FATEX Fair is one of the most important fashion exhibition
shows in France and is aimed at the professionals of the
fashion and apparel industries. It was established in the
fashion capital of Europe, i.e. Paris in France. It is the ideal
place to publicize your brand image, analyze the competition,
step up sales, launch new products, get to know the markettrends and expand your network of business contacts.
The main objective of FATEX is to maintain a long term
stable business relationship with all sectors of the fashion
apparel in France, especially by increasing the quality and
quantity of attendees and buyers at the event. The show is
being organized by M/s Eurovet, France.
M/s Eurovet with the presence of their subsidiaries and
activities in Europe, Asia and United States, and via more
than 30 representatives’ offices internationally, the mission
of Eurovet is to offer platforms for export development for
fashion garments & accessories, through organizing trade
shows across the world.
Exhibitor may take advantage to tap this huge
18
APPAREL INDIA
US$ 21.06 billion French apparel market.
India’s apparel exports to France are around
US$ 980 million.
VENUE
The fair would be organized at Hall 2.1 in
Paris Porte De Versailles, Paris, France
DATES
3 – 4 – 5 July, 2014 (Thursday, Friday and
Saturday)
MDA Grant
This project is under Marketing Development Assistance
(MDA) scheme. Market Development Assistance (MDA), as
announced by the Ministry of Commerce and as amended from
time to time, the Last date of submission of MDA application
is 5th June, 2014. The applications would be considered on
First-come-First Served (FCFS) basis.
Good buyers like ONWARD KASHIYAMA Co. Ltd., Kitson
JAPAN, Sanrio Company Ltd., Gap Japan K.K, Bleu bleuet
Japan, QVC Japan Inc., MARUI CO. LTD, TOKYO DOME
CORPORATION, Iwataya Mitsukoshi Iwataya Mitsukoshi,
GINZA Yoshinoya, Isetan Mitsukoshi Holdings Ltd., Shizuoka
Isetan Co. Ltd., Senshukai Co. Ltd., TOKYUDEPARTMENT
STORE CO. LTD., Amazon co.jp, Barneys Japan, TOKYO
HANDS INC., AMERICAN RAG CIE JAPAN INC.etc. have
visited in the previous show.
VENUE
Country
Date
JFW International
Fashion Fair
West Exhibition Hall,
Tokyo Big Sight,
3-21-1 Ariake, Kotoku, Tokyo 135 0063,
Japan
23-25 July, 2014
Participants should avail huge benefit
in participation fee on account of mai
grant from ministry of commerce
The Mega Show is being organized under the MAI Assistance
Scheme of Ministry of Commerce, Govt. of India. The cost of the
stall together with entire promotional expenses for 9 sq.mtrs.
(Approx) is costing AEPC Rs. 4.27 Lacs, however, after taking
into consideration the MAI assistance and Council’s contribution,
we are pleased to offer a stall of 9 sq.mtrs. at Rs. 1.90 Lacs. The
project is under MAI. It is targeted mainly to MSME sector.
Industry experts shall provide advance information for preparation
of collection for the show. The Council will be providing the
facilities of interpreter, participation in the fashion show, overseas
publicity, inland publicity, publicity through signage, banners
standees and space allocation in the priority area of IFF Fair.
APPAREL INDIA
19
AEPC Initiatives
Initiatives
Brandix India Apparel City (BIAC)
Brandix India Apparel City (BIAC) was developed by Brandix which is a top Sri
Lankan apparel company and a global leader in sustainable development and ethical
manufacturing. As additional context, Brandix is a key supplier to major retailers
like Victoria's Secret, M&S, etc., and has established anI ntegrated Textile Park – the
Brandix India Apparel City (BIAC) in Vishakhapatnam. The park is spread over 1,000
acres, employs ~14,000 women operators, and exports USD 200M+ to US and Europe.
Over the last 5 years, Brandix has nurtured BIAC into a fully functional, integrated
textile park...
BIAC is build on a strong value proposition – lowest cost in Asia,
abundant supply of cheap, high-quality labor, near 100% cotton
knit cluster (presently focused on completing synthetic knit
cluster), world-class Plug-n-Play infrastructure and competitive
lead times. In fact, enabled by these advantages, the plants in
BIAC have become one of the highest-efficiency and lowest-cost
plants in Asia. Please refer to the attached materials for detailed
information about BIAC and its advantages. BIAC could truly
increase the sourcing competitiveness of Indian manufacturers
looking to set up new factories or find more competitive locations.
Recognized as a Special Economic Zone (SEZ) by the Government
of India, BIAC displays a state of the art infrastructure. It also
enjoys a host of attractive financial and operational incentives for
investors, as well as comprehensive support to facilitate seamless
and rapid start-up of operations.
Infrastructure
Brandix India Apparel City (BIAC), .is in the Special Economic
Zone with the land extent of 1,000 acres, covering land area of 13.5
Acres. The Factory built up space 146,000 sq. ft. Workforce with the
total 3,700 Employees. The Production capacity is 4.5 million pcs/
month with the manufacturing of Product like Underwear operating
20
APPAREL INDIA
in double shift. Brandix India Apparel City is an ambitious example
of innovation, technology and efficiency that provides a platform
for end-to-end apparel solutions. The breakthrough concept of
seamless ‘Fibre-to-Store’ integration offers unmatched advantages
for global apparel chain partners. BIAC’s seamless concept ensures
that all needs are met, encompassing raw material sourcing to the
shipping of final products all in one place
Enjoying a reputation of being one of the fastest growing economies
in the world, India provides an abundance of opportunities for
foreign investors keen on expanding their apparel empire. India
is the second largest cotton producer in the world with Andhra
Pradesh being the second biggest cotton supplier.
This geographical benefit coupled with Brandix's vision of a unique,
integrated apparel supply chain provides a compelling rationale for
investment.
Procedural ease and an array of inviting financial and operational
incentives have been bolstered by the added advantages of BIAC's
tax con-cessions provided by the government, will further distill
investor benefits. In addition to these, the greater efficiency in
distribution and front end costs due to the single location of all
value chain partners, a centralized logistics unit and a Just in Time
process, will ensure optimum returns and make BIAC the most
competitive price apparel location in the world.
AEPC
Chairman AEPC welcomes extension 2%
duty credit scrip for RMG to EU & USA
Chairman AEPC, Shri Virender Uppal, welcomed the move to extend the 2% duty credit
scrip under the Market Linked Focus Product Scrip (MLFPS) for RMG sector (2%
Duty credit scrip, HS 61 & 62) to EU and USA for exports from 01/04/2014 till further
orders. Chairman AEPC, Shri Uppal in his statement remarked, “The incentive to RMG
products which have the highest employment intensity and potential was the need of
the hour. I am sure that this decision of the Government would surely go a long way to
offset infrastructure inefficiencies and other associated costs involved in manufacturing
and marketing of these products”. DGFT in its notification dated 27.02.14 amended the
Chapter 3 of Foreign Trade Policy.
Chairman AEPC noted that, “We are at the last lap of this
fiscal year and Industry captains are sprinting fast to reach
the most ambitious target set for AEPC this year. With the
current growth of over 16.4% I am hopeful we will be cruising
past US$ 15 billion. It is noteworthy that Chapter 61 & 62
covers all the garment products and our exports to EU & USA
covers almost 65% of our total garment exports.
Chairman AEPC also lauded the DGFT for expanding the list
of products for textiles and leather under the above scheme.
It is a well-timed move, which will have the far reaching
benefits in terms of boosting the exports. High input costs
and slowdown in global markets were adding to the stress. I
am sure the present initiative of DGFT would certainly help
in easing the pressure to a considerable extent to our sector,
Shri Uppal added.
Chairman AEPC welcomes the interim
rail budget 2014
Shri Virender Uppal, Chairman AEPC has
hailed the Interim Rail Budget 2014 presented
by Union Railway Minister Mallikarjun
Kharge in the Parliament. Reacting to the
rail budget, Chairman AEPC, stated that, “I
welcome the move to keep both the passenger
as well as the freight fares unchanged.
Amidst the rising input costs including the logistics, the
manufacturing of garments has become costlier and the cushion to
increase the price is getting further limited as we might lose our
competitiveness in the global market. Any increase in the freight
rate would have cut into already wafer-thin profit margin and
probably resulted in a big blow to the garment Industry which has
been trying hard to sustain the average growth of 16% for more
than three quarters.” Hon’ble Railways Minister has exhibited his
concern and support by keeping the freight rates unchanged and
we thank him. I also welcome the move to make dedicated freight
corridor as it will greatly help to cut the transit time and help us
in meeting our tight timelines which are crucial for the Garment
Industry, he added. Chairman AEPC also lauded the DGFT for
expanding the list of products for textiles and leather under the
above scheme. It is a well-timed move, which will have the far
reaching benefits in terms of boosting the exports. High input costs
and slowdown in global markets were adding to the stress. I am sure
the present initiative of DGFT would certainly help in easing the
pressure to a considerable extent to our sector, Shri Uppal added.
APPAREL INDIA
21
ATDC Updates
Updates
ATDC
Chairman AEPC Shri Virender Uppal
inaugurates ATDC 190th Centre at
Hindupur in Andhra Pradesh
Apparel Training & Design Centre (ATDC), 190th SMART Training Center was
inaugurated by Mr. Virender Uppal, Chairman AEPC, ATDC & IAM at Hindupur, on
7th February, 2014 in the presence of Guest of Honour Prof. K.C. Reddy, Chairman
REEMAP & Vice- Chairman REECAP and other dignitaries. It is the 12th centre to
be opened in Andhra Pradesh. The SMART Centre is located at 65 Thumukunta,
APIIC Industrial Estate, near Hindupur. It is also the first center to be opened with
an industry partner supporting infrastructure.
Traditional Lighting the Lamp by Chairmn Vice Chariman and DG
Chief Guest Prof. KC Reddy cutting the ribbon to inaugurate the 12th center in AP
Mr. Virender Uppal, Chairman, ATDC, AEPC and IAM
said that “Garment sector provides employment to about
10 crore people in the country at various levels in the
apparel value chain next only to agriculture. It has so
far trained over 1 lakh youth and offered livelihood to
them through wage employment and self employment.
Through its network of training centers across India,
ATDC has not only been fulfilling the demands of skill
starved apparel industry but also raised the standard
of living of several hundred families. ATDC through its
22
APPAREL INDIA
various training programmes ranging from a one month
SOB course to a two year diploma has been extending
linkages between industry and different segments of
youth.”
Chairman ATDC remarked, “As part of a new strategy
wherever is required especially when industry members
set up the factories away from traditional clusters ATDC
will support by joining hands to set up training centers
as being done here in Hindupur with Texport Industries
or even by joining hands with State Governments to set
up Common Facility Centers to provide employment to
local people.”
It is encouraging to note that the demand for training and
employment are as high as the demand for workforce in
the industry in this area. This augurs well for both the
local population and the industry which can co-exist
in a symbiotic relationship. I consider this Apparel
industry - ATDC tie-up a good model which benefits
both the apparel units and the training institute. The
industry gets trained workforce and the institute gets
more and more exposure into the realities of apparel
production against time, cost and other constraints, he
added.
In his welcome address Sri Hari Kapoor, Vice Chairman,
ATDC said that the training centers of ATDC span the
length and breadth of India from Mizoram to Rajasthan
and from Jammu to Kerala. The training center at
Hindupur will train candidates from the nearby villages
and provide employment in the growing garment
manufacturing industry at the industrial estate.
Addressing the gathering Dr. Darlie Koshy said that
ATDC has been rendering great service in bridging
the gap between the manpower demand of the garment
industry and the employment and livelihood needs of
the youth particularly the poorer and weaker sections
of the society. He said that the new skill center aims
at providing training to the rural population of the
Ananthapur district targeting women and youth between
the ages of 18 and 35. The enrolled students at the new
centre will be provided training on basic industrial
sewing machines for 30 days and then imparted a 15 day
advanced training in industrial production. At the end
of the training they will be tested for their skills and
knowledge and then certified placed in the industry and
their progress will be monitored.
The new centre will provide skilled work force at
various capacities related to the apparel industry to
the garment industry in and close by Hindupur thus
providing continuous employment to the large number of
population of the district.
Addressing the gathering Sri Umesh Mishra, Director,
Texport Industries (P) Ltd said the center is a new
initiative taken up by ATDC in partnering with industry
to meet its manpower demands. The various programmes
offered by ATDC have immensely helped the apparel
industry to keep abreast with international competition.
Delivering the Key Note address Prof. KC Reddy,
Chairman REEMAP and Vice Chairman REECAP, Govt.
APPAREL INDIA
23
ATDC Updates
Updates
Chairman AEPC delivering the inaugural address
of Andhra Pradesh said that the mission of REEMAP
is to provide employment to every youth in Andhra
Pradesh by imparting vocational training and making
them employable. Among the many agencies with which
REEMAP is associated for training and placement,
ATDC by far has contributed considerably by dovetailing
its large training network and infrastructure and serving
the needy youth in the state. The collaboration between
REEMAP and ATDC has given vocational training a new
paradigm in reducing the poverty at the bottom of the
demographic pyramid in the state.
India has a youth population of over 400 million who are
looking for wage and self- employment. Population in
working age group is one of the highest in India among
all countries in the world. India faces a tremendous
challenge of providing “employable skills” through
vocational training programs that too within a short
duration like 2 to 3 months to earn atleast minimum
wages. The apparel sector offers tremendous opportunity
in the next 10-12 years with considerable growth in
both exports and domestic industry to add about 12-15
million people or more to the workforce and to various
tiers of manufacturing including about 1.5 to 2 million
people in supervisory and managerial positions, thus
bringing opportunities to thousands of youth and women
especially from disadvantaged sections of society.
24
APPAREL INDIA
ATDC
Vice Chiarman welcoming the digintaries
As the second-largest provider of direct and indirect
employment after agriculture with about 10 Cr. people
involved in textile – apparel value chain, apparel
industry has become a key focus area. It is for this reason
that the Ministry of Textiles, GOI had selected ATDC in
the Pilot Project period as Component-I organisation to
implement the Integrated Skill Development Scheme as
a Nodal Agency, and ATDC took up this challenge and
exceeded the yearly targets so far set by the Ministry of
Textiles training around 1 lakh candidates during the
pilot project period and also linking employment for
about 75% of the trained candidates. This has been done
through about 188 centres. ATDC’s Pan-India network
have helped in providing trained personnel to the skill
starved apparel industry in many clusters and also have
helped to raise the standard of living of several hundred
families. Even if we take 3 to 5 people per family nearly
half a million people have been already served through
the training effort.
ATDC took also the farsighted step of setting up Training
of Trainers (TOT) Academies, in Gurgaon (Delhi/
NCR), Chhindwara (MP) and Thiruvananthapuram
(Kerala) and so far about 850 Trainers have been
trained Quality of trainers is very critical for ensuring
‘quality of training’ to the candidates. In addition
to training programs ATDC has also stepped up the
programmes for upgradation and improving productivity
and efficiency through setting up of ATDC-JUKI Tech
Innovation Centre, Applied Research Fellow- ships,
‘Textile Testing Labs’ at major centres, etc. ATDC also
recently set up a Product Speciality (Knitwear) Training
Centre at ATDC Faridabad. Going forward ‘Product
Speciality Training Centres’ will play a pivotal role in
catalysing the apparel industry to diversify the product
basket. ATDC also championed the development of
Contemporary Standardised Curricula for Fashion &
Garment industries and to align the same with NCVT
(DGE&T)/AICTE which ensures proper certification and
lateral / vertical mobility to the aspiring candidates.
In the on-going 12th Five Year Plan under the ISDS of
MOT, GOI, ATDCs have set ambitious target of skilling
cumulatively 250,000 people through over 200 Centres
across India. As part of a new strategy wherever required
especially when industry members set up the factories
away from traditional clusters ATDC will support by
joining hands to set up training centres as being done
here in Hindupur with Texport industries or even by
joining hands with State Governments to set up Common
Facility Centres to provide employment to local people.
Ananthapur district in Andhra Pradesh is one of the
districts with minimum rainfall and also among the
poorest of districts. The estimated BPL households in
the district are 82.33% of the total households.
The APIIC Estate at Thumukunta A.P. is an example of
a newly developing garment Cluster in the State of AP
but adjoining Karnataka state. Availability of youth and
women to join workforce is an advantage particularly
to the garment industry that are heavily dependent
on manpower. Some of the industries in the garment
sector which are already operating or are going to open
including Texport Industries Pvt. Ltd, Page Apparel,
Cotton World, Scotts Garments etc. As I understand
K. Raheja is also developing Apparel & Textile SEZ at
Hindupur as a State-of-Art manufacturing zone. It is
estimated that the garment industry in this area requires
manpower to the tune of about 25,000 – 30,000, a
majority of it being as operators and other shop floor
personnel.
Under the ATDC-SMART centre desirous candidates
in the age group of 18 and 40 are enrolled for training
on basic industrial sewing machines for 45 days out of
which 15 days are being spent on ‘hands on’ advanced
training in actual industrial production context.
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25
ATDC Updates
Updates
Atdc-Smart Skill Camp at crpf
Camp, Yelahanka, Bangalore
centre of this gc for families/wards of crpf personnel
free of cost for a period of one month on rotational basis
for this purpose m/s apparel training and designing centre
hub bangalore (under ministry of textile, govt of india)
ATDC
has provided/installed 25 nos high speed indstrial sewing
machine to rcwwa gc, crpf, bangalore, and depute there
trainers to impart training. 2 Batches have been already
trained now 2 batches under training.
ATDC SMART skill camp was set up in the premises of the CRPF Wives' Welfare
Association (CWWA), Bangalore Region at CRPF Camp, Yelahanka near Bangalore.
The skill camp was inaugurated by the Inspector General CRPF, Karnataka sector in
May 2013.
SHRI. N.R.K. REDDY IPS, IGP, S/S, Visit at Rcwwa, (1st Batch) smart operator basic skill course apparel training and design centre, Gc, Crpf
campus, Bagalore.
Smt. Aruna M. Bhouguna, ips, spl. Dg visit at rcwwa (2nd batch) smart operator basic skill course apparel training and design centre, gc, crpf
campus, bagalore.
The skill camp has so far trained over 200 family members
of the CRPF personnel. Some of the trained women are
gainfully employed within the camp while some of them work
for companies like Raymond. They cut and make uniforms
for the personnel not only of the Bangalore region but for
other regions also.
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Welfare activites under cwwa
gc, Bagalore
Welfare programmes have been inaugurated by Shri. K.
Arkesh, ig, kk sector on 17-05-2013. A training programme
on tailoring and designing is being organized at rcwwa
Shri. M.S. RAGHVA, ADG S/S visit at rcwwa ladies under one month smart operator basic skill course apparel training and design centre, in,gc,
crpf campus, bagalore.
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27
ATDC
Updates ATDC
Updates
Atdc completes training of 1,00,000
candidates in pilot project period of
Isds of Ministry of Textiles: Chairman
Aepc, Shri Virender Uppal
Targets to train over 1,50,000 candidates in the next
3 years with 250 atdc centres
The ATDC ‘Hunar ki Hunkar’ was inaugurated, Chairman AEPC by Shri Virender
Uppal, in presence of Shri Hari Kapoor, Vice-Chairman, ATDC, Shri Ashok Logani,
Chairman DISHA Sub- Committee, Shri Lalit Gulati, Shri Lalit Thukral, and DG
Apparel Training and Design Centre (ATDC), Dr. Darlie Koshy. The 2 day event
(20th - 21st February 2014) opened at Apparel House, Gurgaon on 2oth February
2014. The event also featured ‘Hunar Se Rozgar’ initiative with over 22 Exporters
present and nearly 1,000 youth seeking employment...
The ‘Skilling & Upskilling’ journey by ATDC in the pilot
project period and the activities and initiatives to achieve the
massive target of 2,50,000 candidates in 5 years has been
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showcased in ‘Hunar ki Hunkar’- Exhibition-cum-Display.
Shri Virender Uppal, Chairman AEPC,ATDC & IAM said
“ATDC- ‘Hunar ki Hunkar’ is a key platform created for
the youth of India which needs to get vocational training
to become productive, and a coverage of skills, employers,
training providers, corporates, NGOs and other stakeholders
converge.” It is estimated that from 2013-2022, about nine
million people are expected to be added to the apparel
industry (both exports & domestic), out of which at least 7-8
million would be the addition to shop-floor workforce given
the growth in both export and domestic industries and the rest
in different tiers of manufacturing as well as merchandisers,
designers, managers etc. With high attrition rates of 12-18%
in the production floors, trained workforce is required to
substitute and also for expanding capacities, he added.
Shri Uppal further informed that, the apparel industry has
moved again on a growth curve with expanding capacities
with about 16% growth and it in this context the approval of
12th Five Year Plan (FYP) proposal of ATDC by the Ministry
of Textiles, of providing financial support for an additional
target of 1,50,000 candidates (cumulatively 2,50,000 till end
of 12th FYP) has come in for which we remain grateful to the
Ministry of Textiles. This major step is expected to provide a
further fillip to the Apparel manufacturing Industry.
Textile- Apparel Sector Value Chain has over 10 Cr people
already associated with it and in the past 3 Quarters alone over
1 lakh jobs- were added in the sector despite the slowdown of
manufacturing sector and employment market. Apparel sector
provided the bulk of the additional jobs. In the next 7-10
years the industry has the capacity to provide employment to
over 50 lakh to 75 lakh people. The focus is to provide rapid
vocational training & make available skilled youth & women
to the growing apparel export / domestic sectors which face
severe skill and talent deficit and attrition.
Chairman AEPC, Shri Virender Uppal highlighted that,
“ATDC has emerged as the largest training provider in the
apparel sector with about 190 Centres in 22 States and 85
Cities and have trained over 1,00,000 people in less than 3
years under Integrated Skill Development Scheme (ISDS),
MOT, GOI through SMART (Skills for Manufacturing
of Apparel through Research &Training) Centres set up
specially for implementation of the training programme and
over 12,000 candidates under long-term programmes through
ATDC Vocational Institutes. ATDC has been also recognized
by the ‘UK India Skill Forum Award 2011 and ASSOCHAM as
the best vocational Institute.’ These awards are in recognition
of ATDC’s outstanding commitment to the Skills Agenda in
the apparel sector by providing employable skills to youth,
women and disadvantaged sections of the Society.”
Shri Hari Kapoor, Vice-Chairman, ATDC highlighted
that “India faces the tremendous challenge of providing
“employable skills” through vocational training programs that
too if possible through short duration training programmes of
2 to 3 months duration to earn respectable wages. ATDC with
about 190 Centres provides these Vocational skills to desirous
candidates and bridge the gap between the rising manpower
demand for skilled workforce of the garment industry and the
employment and livelihood needs of youth and women folks in
the country.”
Dr. Darlie Koshy, DG&CEO-ATDC & IAM emphasized
that for a country of India’s size with such a huge youth and
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29
ATDC
Updates
Updates
DISHA
«Interview
by
Shri Ashok LoganiChairman DISHA
Sub - Committee...
»
Shri Ashok Logani Chairman, Disha Sub-Committee
Q. Congratulations on being renominated as
DISHA Sub-Committee Chairman in 2014
and 2015. What are your targets for 2014?
Reply:
women population providing ‘demonstrable’ and ‘employable
skills’ has become critically important to provide wage and
self-employment to millions of people but has the capacity
to transform rural economy if properly linked to become
“Apparel led growth engines”. Highlighting the importance
of the Textile and Clothing Industries Dr. Darlie Koshy,
underscored that the Textiles & Clothing Industry is spread
in every nook and corner of India providing backbone of wage
employment in many areas through both domestic and export
Textile & Clothing units..
The Valedictory & Award function on Day 2 (Feb 21, 2014)
was attended by Guests of Honour Shri JP Rai, IAS, Director
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General National Skill Development agency (NSDA) and Shri
Dilip Chenoy, MD, National Skill Development Corporation
(NSDC) who in recognition of ‘Talent & Skills’ in the
apparel sector presented awards to ‘Skill Icons’ representing
Speed-Precision-Agility-Innovation.
Hunar ki Hunkar captured and showcased various facets
of the massive skilling mission including mobilization efforts,
Training of Trainers (TOT), Hunar se Rozgar (Job Fair /
Rozgar Mela), Hunarbaaz (Skill Competitions), Hunkar
ka Safar etc. “Tech Talk Sessions” to address key issues
on Innovations in Technology, Enhancing Productivity, and
Addressing Skill Gaps in the Apparel Industry, etc.
In the first phase, we have completed the capacity building
programme in 200 units so far. In 2014, we plan to undertake
300 units for capacity building. For faster implementation
of the training in factories, we have conducted training of
trainers programme in Delhi and Bangalore and thereby
built a team of over 30 experts who will be implementing the
next phase of the programme shortly.
Although a lot of work has happened on the project so far, we
are not happy with the pace of the programme. The programme
has been going slower than my expectation, largely due to
various policy level and ground level challenges beyond our
control. However, I am confident we will be able to resolve
them and move forward on a strong footing this year.
An important milestone of the programme is assessment
of the units that have undergone the capacity building.
Assessments could not be conducted so far due to concerns
raised by Ministry of Labour on some aspects of the
assessment. We plan to hold meetings with the concerned
ministries and resolve the issue.
year have any major restructuring of the
programme?
Reply:
Yes, we consider the project so far was at pilot stage. We
are evolving and learning from our experiences. An important
learning is the resource bottlenecks, with limited availability
of trained experts to conduct the programme. That is where
we are trying to strengthen ourselves.
The documents and methodology was reviewed during a
content review and validation workshop this year. This is
a process we plan to follow every year to ensure that the
programme is updated as per the global developments in
the field of social compliance and remains relevant to the
stakeholders while remaining within the purview of the India
laws. In every aspect of the programme we are reviewing
any scope for improvement. I am hopeful that 2014 will see
greater acceptability of the DISHA programme among the
buyers and brands.
Q. DISHA is now on ground for more than a
year. You must have learned a lot during
this process. Has that lead to any changes
in the programme - does your plans for this
APPAREL INDIA
31
INDUSTRY News
News
Textiles: Spools of opportunity for India
likely to bounce back by 4% to reach 16.5 million tonnes in
2013. In the case of textiles, defined as spun yarns, fabrics
for onward processing, and household and technical articles,
growth across all the fibre types was expected to rise by an
estimated 7.5%, to reach some 24.7 million tonnes.
Most developing countries have a special advantage in apparel
exports. Globally, these grew in value from $278 billion in
2005 to $412 billion in 2012. The top ten developing country
suppliers accounted in 2012 for 58% of those exports. The
most important global markets were the EU (38.5% of total
imports, with 20.3% being extra EU), the US (19.9%) and
Japan (7.7%) which, between them, accounted for 66% of
global imports of clothing in 2012. While other markets such
as Canada, Russia, Korea, Australia and Switzerland have
grown in importance over time, they accounted for just 8.3%
of the total in 2012.
Dramatic changes
For many years now, developing countries
have dominated the trade in textiles. The
relative labour intensity of parts of the textile
value chain has combined with low barriers
to entry into the industry to give poorer
countries an advantage in production and
trade. This has held even when a few global
majors dominate the value chain leading up
to the supply of textiles to retail markets in
the USA and the European Union. Even they
must locate the cutting, sewing and trimming
operations in the garment industry in lowcost locations, often fed with cloth imports
from abroad...
But with design, value chain management and retail
distribution under the control of major global players,
margins for most developing country producers remains low.
Especially for those that have not managed to vertical integrate
production and establish a textile production complex.
For country’s performing well in this business, the rewards
have been significant in recent years. Cotton yarn production
in 40 leading producers rose, according to Euromonitor
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International (using UN data), from 31 million tonnes in 2008
to 46 million tonnes in 2013 or at 8.4% per annum. Production
was dominated by China and India, partly because these
countries were important suppliers to both world markets and
their own substantial domestic markets. This domination at
the yarn production stage is of considerable relevance, even
though discussions on the geography of the textile business
have focused on the trade.
The global textiles and clothing market rose in value
from $480 billion in 2005 to $708 billion in 2012. That
performance, over a period when much of the world economy
was mired in recession, is remarkable given that the global
textile market has been quite volatile. The late 1980s were
a golden age for the textiles trade, after which growth rates
have fallen and averaged between 5 and 7% between 2000
and 2012. However, 2010 and 2011 were remarkable growth
years. Although 2012 was once again a bad year, possibly
influenced by the crisis in Europe that resulted in a sharp fall
in imports to that region, the evidence points to a recovery in
2013.
Bouncing back
An October 2013 estimate by PCI Fibres suggested that the
apparel trade by weight, which was down 2% in 2012, was
There have been dramatic changes in the relative position
of individual countries in the global apparel trade league
table. For example, Bangladesh, which was the 76th largest
clothing exporter in 1980, has become the fourth biggest
garment exporter currently. But the change in geography is
quite generalized. This comes through from an analysis of the
changing sources of developing country supplies in apparel
exports to the US and the EU.
Consider the US. In 1970, Japan, which had joined the OECD
in 1964, was the leading apparel exporter to the US. Hong
Kong, South Korea, the Philippines, Mexico and Israel were
among the top 10 exporters to that country. By 1980 Canada,
the UK and Israel made way for China, India and Singapore.
The Dominican Republic and Indonesia appeared among the
top 10 in 1990 and Japan and Singapore exited. By 2000
Bangladesh and Thailand were present and were joined by
Vietnam in 2012. There have been significant changes in
ranks as well. The only element of relative stability has been
that since 2000 China has topped the list of leading apparel
exporters. It is possibly time for a change there. In the EU,
while developing country apparel exporters have gained
dramatically, some countries in the region such as Turkey
and the peripheral countries of Europe have also benefited.
Geographical proximity seems to matter here and perhaps the
relocation of EU producers to peripheral countries explains
the significant share of intra-EU exports.
Turkey has been the second largest exporter to the EU since
2000. Interestingly, it does not feature in the list of the top 10
suppliers to the US. This is also true of Tunisia and Morocco.
That is because, besides geographical proximity, preferential
market access is a factor explaining market shares in the EU.
Differential ability
However, success in the apparel trade does not reflect the
INDUSTRY
strengths that can prove crucial in the long run. While the
leading exporters of apparel were often also the leading exporters
of textiles, there have been some exceptions. On the one hand
China, India, Turkey and Pakistan have been significant
exporters of textiles, besides garments, whereas Vietnam and
Bangladesh have not been so. This points to the differential
ability of developing countries to exploit the benefits of having
a textile production complex and appropriating an increasing
share of value added in the global value chain.
This ability to create a textile production complex partly
explains China’s long-term resilience in the global textiles
market. That ability is in turn related to the large domestic
market that helps build the foundation for a strong industry.
According to the China National Textile and Apparel Council
(CNTAC), the size of the Chinese domestic apparel market
doubled between 2005 and 2011, increasing in value terms
from 700 billion yuan to 1,400 billion yuan.
Often margins in these markets are also higher, especially for
domestic producers able to access these markets by themselves
without being subject to pricing pressure from aggressive
global buyers. These are factors explaining China’s long-term
success. India too has many of these advantages. It has a large
market for textiles, which has been growing rapidly, driven by
a high-spending middle class and a large population.
Advantage India?
Yarn production rose from 4 billion kg in 2000 to 5 billion
kg in 2013, and cloth production from 39 billion metres in
2000 to 63 billion metres in 2013. India was the sixth largest
developing country exporter of garments to the US and fourth
largest to the EU. It has an important presence in global yarn
production. So it is in a position to expand its presence in
the global textiles market and increase its market. This is a
real possibility also because rising labour costs in China are
likely to erode its competitiveness. According to the Bureau of
Labour Statistics of the US, average hourly compensation costs
in Chinese firms rose from $0.60 in 2002 to $1.74 in 2009 with
much of the increase occurring in recent years. On the other
hand, labour compensation (including pay for time worked,
directly-paid benefits — excluding payment in kind - social
insurance expenditures, and labour-related taxes) in India’s
organized manufacturing sector has only risen from $0.68 an
hour in 1999 to $1.46 in 2010. The rise among production
workers (as opposed to all employees) has been lower, from
$0.53 to $0.92 per hour. This could give India a competitive
edge in industries such as textiles. We should not be surprised,
therefore, if new changes in the geography of textile production
occur, with China losing its position at the top of the export
league table and giving way to India in a labour-intensive
sector such as textiles.
Credit: This article was published on February 17,
2014 in Hindu Business Line)
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33
INDUSTRY News
News
Exploring the Advancements in Materials
Research, Synthesis, and Fabrication
Providing a perfect symposium to share
knowledge for scientists, engineers, directors
of companies and students in the field of
Materials Science and Nanotechnology, the
3rd International Conference and Exhibition
on Materials Science and Engineering will
be held in San Antonio, USA from 06 to 08
October 2014...
Advancements in Materials Research, Synthesis, and
Fabrication.” The event is being organized by OMICS Group.
Further information on the exhibition can be found on the website:
www.omicsgroup.com
ATRS Recycling announces record
breaking textiles collected in 2013
INDUSTRY
Fourth ITMA ASIA + CITME combined
exhibition gears up to affirm its position
as leading global platform for Textile &
Garment machinery; Indians to be largest
overseas textile buyer group at ITMA
Fourth ITMA ASIA + CITME, the combined exhibition gears up to affirm its position
as leading global platform for textile and garment machinery. The exhibition is owned
by CEMATEX, CTMA and its two other Chinese partners - the Sub-Council of Textile
Industry, CCPIT (CCPIT-Tex) and China Exhibition Centre Group Corporation
(CIEC). JTMA (Japan Textile Machinery Association) is a special partner of the event.
The exhibition is being organized by Beijing Textile Machinery International Exhibition
Co Ltd and co-organized by MP Expositions Pte Ltd...
The company’s rapid growth and expanded
textiles recycling programs have increased
diversion by 18% through the United States...
American Textile Recycling Service (ATRS) has been
committed to increasing textile recycling and reducing
greenhouse gas equivalencies through its Clothing & Shoe
Recycling operations in 12 markets nationwide, announcing
record breaking pounds collected and diverted from landfills
in 2013. Last year ATRS improved diversion of textile waste
to an astounding 33,500,000 lbs. or 16,750 tons. That's an
increase in diversion of over 5,200,000 pounds or 2,600
tons or 18% over 2012.
"ATRS works diligently to assist cities in improving their
overall diversion through Clothing & Shoe Recycling,"
says Bill Corrao, Government Relations Advocate for
ATRS, "Programs include easy, convenient neighborhood
collection bins, planned residential curbside textile
collection programs, municipal drop-off sites and eventbased community drives year round."
American Textile Recycling Service’s commitment to local
area charities reflects this increase in collections by an
increase in charitable funding. Clothing & Shoe Recycling
partnerships provide non-profits with much needed
unrestricted funds to maintain and expand local programs
and services. ATRS has donated over $4.4 million affiliate
charities to date.
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As the nation’s fastest growing textile recycler, ATRS
doubled its size in 2012 and is on plan to be nationwide by
2020. Projected collections for 2014, from the company’s
existing markets are set at 42,000,000.
American Textile Recycling Service (ATRS) is the nation’s
fastest growing textile recycler and an official recycling
member of SMART. Its socially responsible business model
provides free textile recycling solutions for the public,
job stimulation worldwide and much-needed funding for
worthy local charities. Easy, convenient ATRS Recyclers
are available throughout Texas, Nashville, Arizona, Florida,
Michigan, Tennessee, Atlanta, Oklahoma, Colorado and
Southern California.
Global textile majors are wooing Indian textile mills to upgrade
their technologies and make new investments in machinery.
With India’s annual textile production expected to reach US$
220 billion by 2020 from the current level of US$ 90 billion,
major investments are expected to be made in India.
India’s textile industry contributes about 14% to industrial
production; 4% to the country’s gross domestic product (GDP);
17% to its export earnings; and is a source of direct employment
for over 35 million people, which makes it the second largest
provider of employment after agriculture.
Indian Government has made ambitious plans for textile sector
in the 12th Five Year Plan. Central Schemes such as Scheme for
Integrated Textile Parks (SITP) and Comprehensive Powerloom
Cluster Development Scheme (CPCDS) along with encouraging
State Investment policies are expected to boost the sector.
The strength of Indian buyers will be evident at the fourth
edition of ITMA Asia + CITME to be held in Shanghai, China
from 16 to 20 June 2014 at the Shanghai New International
Expo Centre (SNIEC). Indian Textile buyers will constitute
the largest overseas buyer community at the show and will find
the opportunity to meet Global players. Showcasing over 1500
exhibitors from 26 countries and regions, the exhibition will
be spanned over 150,000 sqm in 13 halls of the Shanghai New
International Expo Centre (SNIEC), expecting a trade visitor
ship of 110,000 from over 100 countries and regions.
Technology and products of display will be in the sectors
of Spinning, Dyeing and Finishing, Knitting and Hosiery,
Weaving, Testing, Dyestuffs and Chemicals, Software and
Non Wovens, Embroidering & Braiding and Garment Making
machineries.
APPAREL INDIA
35
INDUSTRY News
News
FTA with Japan may boost Turkish
apparel exports
During a recent visit to the Aegean Exporters’ Association (EHKIB) in Izmir, the president
of the Japanese Textile Federation Akikazu Shimomura stated that the expected free trade
agreement (FTA) to be signed between Japan and Turkey may help in boosting apparel
exports from Turkey...
A delegation of Japanese textile industry representatives from
the Japanese Textile Federation recently met with Turkish textile
exporters from the EHKIB and the Aegean Exporters Union
(EIB) with the aim of discussing cooperation in the textiles
sector between the two countries.
During the meeting, Mr. Shimomura said that the FTA to be
signed between the two nations could prove to be extremely
beneficial for the textile and apparel sector of both the countries,
and Turkey’s apparel exports to Japan may also increase. EHKIB
chairman Emre Kizilgunesler said the much awaited FTA would
increase the trade volume between the two nations, especially in
the textiles and apparel sector.
According to the EHKIB official, Turkey exported apparel worth
only US$ 4.1 million to Japan in 2013, and the expected FTA
may help facilitate apparel exports from Turkey to the country.
Turkey can import raw materials from Japan, and can export
Backgrounder
finished products to the country, and both the countries would
benefit from the cooperation as well as improve trade relations,
especially in the textiles and apparel sector, he added.
Secretary, Ministry of Textiles Smt. Zohra Chatterjee unveiled Brand India Store and Indian
Republic Store , an innovative flagship stores organized by National Textile Corporation Ltd.
(NTC) In New Delhi on 21 February 2013. She also unveiled Streevijay, "Social empowerment
initiative for women", Setu Its handloom cluster procurement initiative and Raasa, its Home
Furnishing brand...
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sectors. NTC plans to expand its network in the coming months to
the entire Nation. The stores will be strategically located to ensure
maximum visibility. The stores will be renovated as per the current
market trends and thus will be comparable to any branded apparel
store and will provide the proper ambience to customers.
Raasa is a Home and Bath Linen brand of NTC which is being
launched with latest designs, trends and affordable price with no
compromise on the quality. The initial designs have been inspired
by Nav-Ras thereby providing Home Linen products for every mood
of the customers.
NTC will sell its textile products viz. Bed Linen and Bath Linen
under Raasa, Handloom products and in due course Handicraft
products through this initiative.
Growth of Textile Industry
National Textile Corporation Limited’s
Retail Initiative "Brand India" and
"Indian Republic" launched
Brand India Stores would primarily serve to fulfill all the retail
needs of the consumers for home and lifestyle products ranging
from home furnishings to home furniture to ethnic garments
to lifestyle home products. The Brand India stores will have
Apparels, Accessories, Home Decor and Furnishings, Furniture
and Antiques and Indian Crafts, Handicrafts and Heritage.
In order to ensure the best designs, NTC has roped in India's
Ace designer Shri Raghavendra Rathore who helped us to choose
India's best designers in various categories to design exclusively
for NTC's Brand India. Through this, NTC is also promoting the
young designer talent in India.
The products will be sourced from various clusters in India thus
promoting local weavers through its handloom procurement
initiative - Setu. Setu is an initiative of NTC which will ensure
that we procure handloom products directly from the weavers and
eliminate the middlemen. The initial stock has been procured
through clusters with NHDC. NTC will expand its product
portfolio and also uplift the weavers. Through this NTC also aims
to promote the hand loom products.
"Indian Republic" stores will have quality merchandise at most
affordable prices. The stores will bridge the gap between the
branded apparel sector and the unorganized market. It aims at
being the most affordable branded apparels in the country. Initially
the stores will have Menswear range gradually moving on to other
INDUSTRY
The contribution of the textile industry in
terms of percentage to industrial production
and export earnings is constant at 12%
during the last three years and current
year. Textile Industry generated direct
employment to over 35 million people...
In order to increase the employment in the textile industry
Government has launched various schemes namely integrated
Skill Development Scheme(ISDS) and Scheme for Integrated
Textile Parks(SITP). The role of the Government is to ensure
conducive policy environment and encourage investment.
Government has taken various steps and launched schemes
namely Technology Upgradation Fund Scheme(TUFS), SITP,
ISDS, etc. In the direction of encouraging and catalyzing
investment in Textile sector. For modernization of weaving
sector, subsidies (both interest reimbursement (IR) and
Capital subsidy (CS)have been increased from 5% to 6% and
10% to 15% respectively. Margin money subsidy has been
increased from 20% to 305 in TUFS. Integrated Processing
Development Scheme (IPDS) with a budget outlay of Rs.500
crores has been approved for modernization of Processing
sector. The second quarter of the current financial year ,
Textile sector has added to 66,000 jobs . In fact, 62% of
total jobs created in the textile sector were contributed by
the exporting units. Exporters gave jobs to 41,000 people.
Textile sector was one of the few sector showing a growth
in the index of the industrial production figures. As per
the latest official figure, while total industrial production
contracted to 0.21% in Apr-Nov, Textile sector output rose
to 3.7%.
There is no shortage of cotton /yarn in the country to meet
the requirement of domestic textile industry .For the current
cotton season 2013-14 (Oct-Sept) there is an estimated total
availability of cotton at 427 lakh bales against the total
estimated demand at 387 lakh bales which is adequate to
meet the requirement of textile industry.
To encourage exports including export of processed clothes,
incentives are available under the Foreign Trade Policy
namely Interest subvention , Market Access Initiative(MAI),
Market Development Assistance(MDA)Schemes and Focus
Market & Focus Product Schemes. The Ministry of Textiles
has adopted four pronged strategy for Textiles exports
namely larger textiles trade shows, skill development
initiatives, compliance programs and duty drawback
schemes. A provision of Rs.500 crore has been made in the
12th plan for introducing a scheme for Integrated Processing
Development.
APPAREL INDIA
37
INDUSTRY News
News
Exports of Readymade Garments
Import of Textiles
Minister of State in the Ministry of Textiles, Smt. Panabaaka Lakshmi gave a statement
in the Rajya Sabha, showing annual Indian import of Textile and Clothing items from
major 15 countries from 2008 to 2012.
Minister of State in the Ministry of Textiles, Smt. Panabaaka Lakshmi also gave a
statement in the Rajya Sabha on the value of exports of readymade garments during the
last three years.
As per data available, Indian import of Textile and Clothing (T&C) from China was
US$ 1441 million in 2008 and US$ 2193 million in 2012 accounting for 39.20% and 42%
respectively of total Indian T&C import.
In USD Million
India Import Statistics
Partner
Country
World
Millions United States Dollars
2008
367
6
2009
31
53
2010
39
22
2011
49
56
2012
52
44
144
13
17
21
1
53
27
89
232
20
19
24
1
3
8
98
12
16
27
3
4
1
161
10
15
20
8
5
6
144
13
16
19
2
7
1
102
95
11
15
4
6
84
75
96
14
1
109
94
11
15
8
2
72
74
91
10
1
119
92
12
14
4
1
60
45
44
39
21
93
29
1
29
1
22
1
20
7
15
8
13
6
12
9
11
7
11
6
10
8
Hong Kong
97
84
93
Indonesia
79
77
85
10
6
93
Italy
89
60
69
90
84
Sri Lanka
24
20
31
59
69
China
United States
Bangladesh
Australia
Taiwan
Korea South
Germany
Thailand
Japan
Nepal
Pakistan
74
79
Data sourced from: Global Trade Information Services (GTIS), INC
APPAREL INDIA
2010-11
11026.29
Commodity: Textile & Clothing, Ch50 to 63
Calendar Year: 2008 - 2012
38
INDUSTRY
2011-12
13083.49
With a regular review on the performance of clothing exports,
Government is taking various steps in consultation with clothing
industry to expand exports of clothing products. Recently, to boost
the export of textile and clothing following steps have been taken:• Market Linked Focus Product Scheme (MLFPS) has been
extended till 31st March 2014 for export to USA and EU in
respect of items falling in Chapter 61 and Chapter 62 (textiles
and clothing).
• Hong Kong, Indonesia, South Korea, Pakistan, Asian Group of
Countries, Philippines have been added in the list of countries
for export of Woven Cotton Fabrics under Market Linked
Focus Product Scheme.
• 27 EU countries have been added in the list for export of
Gloves, Mittens and Mitts of Cotton filled with cotton fibre
under MLFPS.
2012-13
12397.35
• Gurgaon has been added as Towns of Export Excellence
(TEE) for Textiles.
• About 15 new products related to Textile Sector have been
added under Focus Product Scheme on 18.4.2013.
• Incremental Export Incentive Scheme has been extended
for 2013-14 vis-a-vis 2012-13 for specified sector including
Textile Sector.
• 2% Interest Subvention Scheme for Ready-Made Garments
has also been extended for 2013-14 and enhanced to 3%.
Items of Chapter 63 also added in Interest Subvention
Scheme.
Despite the global slowdown, garment export industry is
performing good and is expected to achieve its target of USD
17000 million set for the current financial year. Good results
are expected in the next financial year also.
Duty Free Access for Indian Textile
Exporters to EU
As per EURATEX data release of 2012, EU garment imports are around 46.6% of its
total requirement. Bangladesh and Pakistan are taking advantage of duty free access
for the textiles under EU Generalized System of Preference (GSP) arrangement of
GSP+ while import from Sri Lanka are allowed duty free under EU GSP provision.
Under this the export from these countries does not attract import duty of average
12%, leaving India to a disadvantage of 9.6%.
Ministry of Textiles has requested Ministry of External Affairs
and Department of Commerce to take suitable measures to
increase exports of Indian garments and textiles into EU.
Ministry of Textiles has also recommended to Ministry of
Finance for extending Interest Rate Subvention Scheme for
textiles export till 2016-2017.
APPAREL INDIA
39
INDUSTRY News
News
More Than Rs 1000 Crore Approved for
Handloom Weavers
Textiles Minister Chairs First Meeting of Reconstituted All India Handloom Board...
First meeting of the reconstituted All India Handloom Board was held
under the chairmanship of Union Minister of Textiles Dr. K S Rao on
17 February 2014 in New Delhi. While addressing the members of
the board, the Minister said that the Government of India has been
following a policy of promoting and encouraging the handloom sector
through a number of programmes and schemes. The Government
is committed to help handloom weavers to meet the challenges of
globalization and modernization. The initiatives of the Government
cover all aspects of production and raw material supply, design and
technical assistance, training and skill up-gradation, marketing and
welfare so that the weaver gets self-sustainable employment.
The Government has taken a lot of initiatives for the welfare and
development of the weavers and Handloom sector. Notable schemes
which were initiated in the recent past are revival reform and
restructuring package for the Handloom sector aiming to waive the
outstanding loans of individual weavers and cooperative societies, to
provide concessional credit to the weavers and also to provide 10%
yarn subsidy to the Handloom weavers.
In RRR package, so far financial assistance to the tune of Rs. 1019
crore has been approved and the Government of India has released
Rs 741 crore. The package has supported around 31 apex, 8805
primary cooperatives, 50,500 individual weavers and 5462 SHGs.
The Banks have sanctioned concessional credit around Rs. 325 crore
to 1.13 lakh weavers. Further, to provide yarn at subsidized price for
the handlooms, the Government of India also announced 10% price
subsidy on woolen yarn in addition to the cotton and domestic silk
yarn already available, 170 lakh kgs. yarn worth Rs. 500 crores has
been supplied during current year till 24th January,2014.
Not only these schemes but the Government so far also sanctioned
six mega handloom clusters. Each mega cluster is provided with
Rs. 70 crore Government of India fund for the overall development
of the weavers. During the XII Plan, Government of India will
provide health insurance to the handloom weavers on the pattern of
Rashtriya Swasthya Bima Yojana (RSBY) of Ministry of Labour and
Employment, with enhanced insurance coverage of Rs. 37,500 from
Rs. 15,000 per weaver family of five members covering both, OPD
and IPD facility. The Government is also providing designers in the
clusters to provide design & colour trends, commensurate with the
market requirement for both, domestic and international markets so
that innovative handloom products with new designs are developed.
The meeting was attended by more than 50 members and they gave
various suggestions including more assistance to handloom sector
to attract younger generations to this skillful art. The Minister also
announced scheme for awarding young weavers.
Minister of State in the Ministry of Textiles, Smt. Panabaaka Lakshmi in the Rajya Sabha
gave the details of Foreign Direct Investment (FDI) in textiles sector during the April 2010
to June, 2013, as mentioned below in Annexure-I...
40
APPAREL INDIA
Setting up of Warehouses in Latin America
The Export Promotion Council for
Handicrafts (EPCH) had submitted a
proposal for setting up of Warehouse/
Showroom in Uruguay with a funding of
Rs.56.50 crore over a period of six years
under MAI/MDA scheme...
The proposal was recommended by Ministry of Textiles to
Department of Commerce. The Department of Commerce has
informed that the proposal could not be considered due to paucity
of allocated budget by Ministry of Finance/Planning Commission.
FDI in Textiles Sector
The State/UT-wise details have not been compiled and no study
has been conducted in this regard. However, the impact of FDI on
the overall development of the sector is felt by way of technical
knowhow, new products in domestic market and increase in
exports. Various labour laws ensure that the interest of workers
including those engaged in textile sector is protected.
Annexure-I
Foreign Direct Investment (FDI) in textiles sector
INDUSTRY
(Amount in Billion)
Total (All Sector)
Financial Year
In Rs.
In US$
2010-11
885.20
19.43
2011-12
1739.46
36.50
2012-13 (Apr-Jun) 238.20
4.43
Source: Department of Industrial Policy & Promotion,
Ministry of Commerce and Industry, Govt. of India.
Share of technical textile in all forms of
textiles
The share of technical textiles in all forms of textiles world over is 18.70% whereas the
share of technical textiles in India is 11.43%...
The Government of India, Ministry of Textiles has taken several
steps for the growth and development of technical textiles by
which the share of Indian technical textiles will improve.
Some of the main steps are as follows:
• Scheme for Growth and Development of Technical
Textiles (SGDTT): This scheme was launched for tapping
the potential of technical textiles and to encourage investments
in this industry, during the year 2007-08 with an outlay of
Rs. 46.60 crore. It had three components namely Baseline
Survey, Creation of Awareness and Setting up of four Centres
of Excellence. . The scheme completed its tenure in the year
2010-2011.
• Technology Mission on Technical Textiles (TMTT):
Government has launched the Technology Mission on Technical
Textiles with two Mini Missions for five years starting from the
year 2010-11 with an outlay of Rs. 200 crore. The main objectives
of the scheme include standardization, creating common
testing facilities with national/international accreditation,
indigenous development of prototypes and resource center with
I.T. infrastructure and support for domestic & export market
development of technical textiles etc.
• Formulation of special schemes for the North East Region for
demonstrating improvement in agriculture & infrastructure
through the increased usage and promotion of Agro and Geo
Technical Textiles, respectively.
• Major machinery for manufacture of technical textiles has
been covered under Technology Upgradation Fund Scheme
(TUFS) with 10% capital subsidy in addition to 5% interest
reimbursement to the specified technical textile machinery.
• Under the Scheme for Integrated Textile Parks (SITP), the
Government provides assistance for creation of infrastructure
in the parks to the extent of 40% limited to Rs.40 crore in
which technical textile units can also benefit.
• The major machinery for production of technical textiles is
covered in the concessional customs duty list of 5%.
• Specified technical textile products are covered under Focus
Product Scheme. Under this scheme, exports of these products
are entitled for duty credit scrip equivalent to 2% of FOB
value of exports.
APPAREL INDIA
41
INDUSTRY News
News
India’s Share in Global Textile Market
1
(i)
APPAREL INDIA
Lakh Bales (170 kg
each) (Cotton Year)
Mn. Kg.
Actual
Production
Projection
2009-10
Actual
Production
Projection
Actual
Production
2010-11
Projection
Actual
Production
2011-12
Actual
Projec- Production
tion
284 307 307290 332305 360 339 390 355
48235219 52224930 56555185 6123 5765 6630 6035
242 280 254233 266302 280 305 294 323
(b)
Mn. Kg.
829 880 912 750 1004872 1104 896 1214 830
(c)
Acrylic
staple fibre
Mn. Kg.
144 81 15980 17490 192 79 211 78
Mn. Kg.
2
32 32 32 4 3
Mn. Kg.
12171244 13271066 14461267 1578 1284 1722 1235
4
2
Spun Yarn
(i)
Cotton
Mn. Kg.
31872948 36332896 41383079 4712 3490 5364 3126
(ii)
Blended
Mn. Kg.
621 677 654655 686707 719 797 752 789
Mn. Kg.
372 378 393361 416407 439 426 464 457
Mn. Kg.
41804003 46803912 52404193 5870 4713 6580 4372
(ii) 100% noncotton.
Total
Filament
Yarn
Viscose
(i)
filament yarn.
3
Mn. Kg.
5451 5542 5643 57 41 59 42
(ii) Nylon filament
yarn
(iii) Polyester
filament yarn
Mn. Kg.
4028 4228 4430 46 33 48 28
Mn. Kg.
13471420 14821332 16311435 1794 1462 1973 1380
(iv) Polypropelene
yarn
Mn. Kg.
1610 1715 1715 18 13 19 13
Mn. Kg.
14571509 15961417 17481523 1915 1549 2099 1463
Total
Annexure-I
Projected production and actual production of the textile during eleventh plan period
42
Cotton
Sub Total
production of cloth by mill, powerloom, handloom, hosiery, etc.
during Twelfth Five Year Plan.
Projection
2008-09
Fibres
(d) Polypropylene
fibre
The role of the Government is to ensure
conducive policy environment, facilitating
in creating enabling conditions for the
industry and private entrepreneurs to set
up units through policy initiatives and
schemes. Some of the schemes / measures
are Technology Upgradation Fund
Scheme (TUFS), Scheme for Integrated
Textile Parks (SITP), Integrated Skill
Development Scheme and Schemes for the
development of the Powerloom Sector...
2007-08
Mn. Kg.
(a)
Apparel/Textile Sector
Unit
Man Made
Fibres
Viscose
staple fibre
Polyester
staple fibre
(ii)
The Ministry of Textiles has been in receipt of representations
from various Councils and Industry Associations including SIMA
and CITI for policy support. The recommendations of the Ministry
of Textiles on the proposals have been sent for consideration/
inclusion in Foreign Trade Policy and Budget 2014-15.
The projection made by Working Group on Textiles & Jute
Sector (Eleventh Five Year Plan) on production of Textile item
and the actual production is given in Annexure-I. The Govt.
has not fixed any production target for textile items including
fabrics/apparel. However, the Working Group on Textile
and Jute Industry for Twelfth Plan made the projection for
Projected production and actual production of the textile during eleventh plan period
Sr.
Production
No.
As per data released by WTO Secretariat
for the calendar years 2009, 2010 and
2011, the share of Indian textiles and
clothing exports in world’s export were
3.98%, 3.98% and 4.11% respectively.
The Government has made various policy
interventions to increase the Indian share
in global trade and to increase annual
production of textile goods including the
schemes like Technology Upgradation Fund
Scheme, Scheme for Integrated Textiles
Park, Integrated Skill Development Scheme
and Integrated Processing Development
Scheme...
INDUSTRY
4
Cloth
(i)
Cotton
Mn. Sq. Mtr.
2881027196 33026 26898 37869 28914 43313 31718 49629 30570
(ii)
Blended
Mn. Sq. Mtr.
73476888 78616766 84117767 9000 8278 9630 8468
Mn. Sq. Mtr.
2363621173 25999 20534 28599 22840 31459 21765 34605 20567
Mn. Sq. Mtr.
707 768 714768 721812 728 798 736 848
Mn. Sq. Mtr.
6050056025 67600 54966 75600 60333 84500 62559 94600 60453
(iii) 100% noncotton
Khadi,
wool
(iv)
& silk
Total
Source for projection:- Report of the Working Group on Textiles & Jute Industry for Eleventh Five Year Plan.
APPAREL INDIA
43
LOGISTICS Article
Article
LOGISTICS
Cutting down on logistics costs:
Emerging wide avenues for Apparel
Exporters
By Partha Pratim Basistha
As cost of transportation of apparel containers continue to mount
for domestic and export orders, apparel producers can explore
wide possibilities of cutting down costs based on their own
transportation estimates both for medium and long term.
Foremost, among the options that can be experimented by
Indian apparel exporters based on an emerging practice among
the exporter fraternity in advanced countries would be engaging
services of highly skilled non asset based logistics service
providers. With emerging requirements of customized and
advanced logistics solutions focusing on timely and safe delivery
of consignments, there has been emergence of logistics service
providers with not so adequate asset base providing customized
apparel shipment solutions.
Significant among one of the entity present in India is JAS
Forwarding Worldwide. A textile is one of the major business sectors
of JAS Forwarding, SDV. The reason why exporters can opt to take
the services of the forwarders is because with growing demand of
timely shipment from Western and Asian trading partners, there
will be ever growing requirement of timely and customized quality
services. A quality service is essential to complement exceptional
ability of Indian exporters to undertake value addition in textile
production will make it be a major exporter. Textiles being
premium products require careful handling during the course of
44
APPAREL INDIA
its transportation. The logistics services providers’ expertise to
serve the segment involving valued services involving ‘garment
on hangers’ could be of much value to exporters and importers.
Many of the deficient asset base global logistics service providers
based in India has global exposure in some cases over 30 years.
Good number of services providers have well acquaintance and
understanding the unique nature of the fashion industry and has
offered its clients quality service and supply chain management.
It becomes pertinent for Indian apparel exporters to note that in
order to meet high demands, most retailers now source globally,
making this business particularly complex. Clients are looking
for a reliable one-stop shop to manage their flows, from source to
shelf, and to control all other supply chain issues, freeing them
to concentrate on their core activities. This makes it essential for
Indian apparel producers targeting the domestic and global market
seek support of logistics providers able to provide exceptional
services at lower costs.
However, it is essential for apparel exporters to evaluate the given
physical asset base prior using services of low asset base logistics
service providers, claiming to offer quality services through
optimization of its given infrastructure .
Functional element of logistics services providers having
business structure based on noncore physical asset base to
meet the logistics requirements for different industries however,
supplemented by its appropriate knowledge and refined standards
ensuring that the company is able to render the desired services
to its clients will required to be considered. It has to be seen the
vendor development programme the logistics services providers/
freight forwarders has in place, ensures the vendors place right
equipments adhering to safety standards at the fullest extent , so
as to minimize any down time for the client.
Appropriate vendor development programme of the logistics service
providers will ensure that the supports of the vendors are available
as and when they are required. It has to be seen by the exporters that
whether the deficient asset base freight forwarders undertake total
due diligence of the vendors assets comprising plant and machinery
prior they are deployed for operation. Ability of the logistics service
providers to safely transport the shipment and brokerage license
will be an added advantage for the apparel exporter.
Among the other evaluation criteria shippers will have to take
into account prior selection of the low asset base logistics service
providers claiming to provide quality services is proper warehouse
infrastructure supported through palletization for identification of
the textile cargo that would be shipped to the retail chains at his
own or vendors end. The warehouses should be having docking
facilities for trucks, safety and security to curtail pilferage of the
apparel products, deployment of X-ray machines is must in the
warehouses. Operations at the warehouse should be well scheduled
with receiving of the shipment from the production facility for its
further transportation to the retail outlet. Around 70 percent of
apparel cargo for domestic retail moves through road transportation.
Shipment of apparel cargo, can be made more efficient through
dedicated vehicles with needed ambient temperature to transport
the cargo, mainly for leather garments. The vehicles should be
fitted with proper global positioning systems for easy tracking,
warehouses catering the vehicles should have hygienic storage
facilities. Warehouses should have special refer services for
leather cargo or cloth on hanger facility. All the factors have to
be taken into cognizance prior selection of the services providers.
Long term initiations
While selection of freight forwarders and other logistics service
providers could prove to be beneficial for apparel exporters.
However, as a long term measure to keep transportation costs under
control by restricting pilferage, damage or untimely shipment
despite higher logistics costs incurred it will be necessary that
both the logistics service providers and apparel shippers have to
take note of the fact that there is a widening skill gap in the supply
chain sector. With growing requirement from importers or receipt
of quality shipment of cargo at their facility without damage, or
maintenance of minimal inventory based on just in time practices,
or reefer arrangements for leather garments, there is a wide scope
of skill building on operating the supply chain infrastructure,
which can be contributed jointly by the logistics service providers
and shippers.
There is significant lack of training facilities, making in difficult
to provide vocational education to the undereducated persons in
logistics sector. The cost of manpower within the supply chain
totally spent in many cases exceeds 8-10 percent and presents
a unique opportunity to follow an advanced country model to
synchronize with the requirements of the shippers of automating
potential manual jobs at the apparel production units that is
closely linked to transportation. The government, shippers and
logistics service providers should work together for skill building
for the future.
While addressing skill gap is a major area that can be addressed
to the benefit of shippers and the logistics service providers,
undertaking advancements in infrastructure is also a major area.
It needs to be pointed out that textile retail business is one the
major segment that is undergoing a transitional change on the back
drop of growing urbanization and rising disposable incomes with
greater preference towards brands. Logistics service providers
representing the trucking industry would require reorienting their
business plan serving the textile retail sector through competitive
positioning of services.
Presently, there are sizeable gaps in transportation supply chain
serving the textile retail trade. There continue to exist contentious
issues involving delayed shipment, poor handling of the cargo
through untrained staff, pilferage, most importantly damage among
other issues. Logistics service providers looking to serve the newer
textile retail outlets and the mega domestic and foreign chains
would require addressing these issues. Gaps in supply chain to a
big extent can be addressed through infrastructure addition and
initiatives to streamline services through value addition.
APPAREL INDIA
45
AEPC Export Performance
Export Performance
Apparel Export Growth remained high
in January Month of FY 2013-14
Apparel exports were to the tune of US$ 1451 million in Jan. 2013-14 with increase of 17.4%
against the corresponding month of last financial year...
Export in dollar terms for April-Jan. of the FY 2013-14 has increased by 16.4% over
the same period of previous FY and reached to US$ 1,12,006 million.
In the FY 2012-13 exports in dollar terms declined by 6% from previous FY and totaled US$ 12,923 million in
April-March 2012-13.
India's RMG Export to World
In US$ Million
(2012-13)
Month
In US$ Million
(2013-14)
1059
1150
8.59
May
1041
1171
12.49
June
1106
1240
12.13
July
1074
1279
19.14
Aug
992
1116
12.5
Sep
968
1113
14.98
Oct
909
1190
30.91
Nov
867
1052
21.34
Dec
1060
1244
17.36
Jan
1236
1451.3
17.42
April-Jan
Top Apparel Supplier Countries to US (Value of imports in USD Mn.)
Imports in US$ mn.
2012
1031212006.3
Jan – Dec Jan – Dec
2012
2013
12-Dec
%Change
13-Dec
3.9
3.2
China
31200.0
30851.131660.62207.02224.1
2.6
0.8
Viet Nam
6798.9
7291.18374.6543.3642.3
14.9
18.2
Indonesia
5250.4
5144.15184.9388.6323.9
0.8
-16.6
Bangladesh
4566.6
4520.45046.3289.4297.7
11.6
2.9
Mexico
3997.2
3876.73842.8254.3280.8
-0.9
10.4
India
3534.4
3237.93410.4212.2230.5
5.3
8.6
(Source: U.S. Department of Commerce Office of Textile and Apparel, 2013)
Apparel Imports of EU
EU’s apparel import accounted for USD 71.5 billion for the
Jan.-Sept 2013 with no increase over the previous year.
India’s export to EU for the Jan-Sept 2013 amounted to
USD 4.3 billion with 4% increase compared to same period
of previous year.
For the period Jan-Sept. 2013 Bangladesh, Turkey and
India which had registered increase in the apparel export
to EU and China had registered decline.
During the period of Jan-Sept 2013 compared to
same period of last year, Bangladesh had registered
highest growth.
Top Apparel Supplier Countries to EU, (US$ Mn.)
Imports in US$ mn.
Apparel imports of the United States witnessed increase of 3.9%
in the Jan-Dec. of 2013 from the previous year and amounted to
83.8 billion dollars. In the Jan-Dec. 2013, US imports of apparel
from India increased by 5.3%% and reached to USD 3.4 billion
against USD 3.2 billion in Jan-Dec 2012. US imports saw increase
from all major suppliers in Jan-Dec 2013 over the corresponding
period of last year except for Mexico.
In Jan-Dec 2013 India was at 6th position. India exported US$
230.5 million apparel in Dec. 2013 with increase of 8.6% over the
same month of previous year.
46
APPAREL INDIA
Among the top 6 suppliers in Dec 2013 all registered
increase in export to USA except for Indonesia. Vietnam
had registered the highest export supply growth among
the top six suppliers to USA in Dec 2013 from the same
month of previous year.
Jan-Dec 2013/ Dec 2013/
Jan-Dec 2012 Dec 2012
81514.1
80688.783809.35883.76073.5
16.43
USA's Apparel Imports
%Change
Total Apparel
Imports of US
Month-on-Month
Growth In%
April
AEPC
%Change
2012
Jan-Sept
2012
Jan-Sept
2013
World
83625.7
68694.9
71517.3
4.1
China
334873
26838
26515
-1.2
Turkey
10674
8287
9470
14.3
Bangladesh
10580
7952
8559
7.6
India
5141
4141
4301
3.9
Jan-Sept 2013/
Jan-Sept 2012
Source: UN Comtrade, 2014
APPAREL INDIA
47
Focus Country
Country
Chile -Market Focus
Chile has a market-oriented economy characterized by a high level of foreign
trade and a reputation for strong financial institutions and sound policy that
have given it the strongest sovereign bond rating in South America. Exports
account for approximately one-third of GDP, with commodities making up some
three-quarters of total exports. Chile deepened its longstanding commitment to
trade liberalization with the signing of a free trade agreement with the US,
which took effect on 1 January 2004. Chile has 22 trade agreements covering
60 countries including agreements with the European Union, Mercosur, China,
India, South Korea, and Mexico...
Chile has joined the United States and nine other countries
in negotiating the Trans-Pacific-Partnership trade agreement.
In 2012, foreign direct investment inflows reached US$28.2
billion, an increase of 63% over the previous record set in
2011. The Chilean Government has generally followed a
countercyclical fiscal policy, accumulating surpluses in
sovereign wealth funds during periods of high copper prices
and economic growth, and generally allowing deficit spending
only during periods of low copper prices and growth. Chile
used these funds to finance fiscal stimulus packages during
the 2009 economic downturn. In May 2010 Chile signed
the OECD Convention, becoming the first South American
country to join the OECD.
Table1: Key Economic Indicators of Chile
Details
Year
Figures
Population
(2013 est.)
17,216,945
Population Growth Rate
(2013 est.)
0.86%
Literacy
(2013 est.)
98.6%
GDP (Purchasing Power Parity - PPP)
(2013 est.)
US$ 316.9 billion
GDP Growth
(2013 est.)
5.6%
Annual Rate of Inflation
(2013 est.)
3%
GDP Per Capita (PPP)
(2013 est.)
US$18,200
Structure of the Economy (2010 est.)
Agriculture
(2013 est.)
3.6%
Industry
(2013 est.)
36%
Service
(2013 est.)
60.4%
Currency
Conversion Rate ( per USD)
Chilean pesos (CLP)
(2013 est.)
APPAREL INDIA
525.34
Major Industries
copper, fruit, fish products, paper and pulp, chemicals, wine
Major Ports
Coronel, Huasco, Lirquen, Puerto Ventanas, San Antonio, San Vicente, Valparaiso
Source: World Fact Book
Chile’s export to world in 2013 was US$ 77.4 billion dollars which
declined by 1.2% from previous year. On the other hand Chile’s
import in 2013 stood for US$ 79.6 billion which was 0.2% higher
than previous year.
Import from India was lower compared to what Chile exported
to India. Terms of trade remained in the favor of Chile. In the
48
Focus
last three years trade between India and Chile has increased
substantially. India accounted only 1.6% share in total export
of Chile in 2005 which increased to 3% in 2013 while in Chile’s
import from world India accounted for 0.4% in 2005 which
increased to 0.9% in 2013. Over a time trade relation between
India and Chile has increased manifold.
APPAREL INDIA
49
Focus Country
Country
Below in the Table 2 brief summary of export and import for last three years is given.
Table 3: Total RMG (Woven and Knitted) Imports of Chile (million dollars)
Table2: Chile's Export and Import of all Goods, US$ Mn.
-2.5
-1.2
Total RMG Import from
India, US$ Mn.
27
Total Woven RMG Import
from World, US$ Mn.
1243
1357
Total Knit RMG Import
from World, US$ Mn.
1141
1163
Total Woven RMG Import
from India, US$ Mn.
15
24
Total Knit RMG Import
from India, US$ Mn.
12
12
India's Share in total RMG
Import from world in%
1.1
1.4
1.2
1.1
78277.0
Exports to India
1913.52586.42303.8
9.7-10.9
Imports from World
74907.1
3.1
0.2
Imports from India
499.8
21.6
4.0
India's Share in
Export in%
2.4
3.3
3.0
12.6
-9.9
India's Share in
Import in%
0.7
0.9
0.9
18.0
3.7
77367.3
Source: UN Comtrade, 2014
Chile’s RMG (Ready Made
Garments) Imports
In the table 2 Chile’s import of RMG from the world since 2011
is given. Table reveals increase in the total RMG import of Chile
from world and share of knitted apparel in total RMG had been
increasing since 2011. Knit apparel share in total RMG import
is more than 51% in 2013. Though, there has been increase in
the import of woven apparel from world however, this import
growth has been higher than the knit apparel.
50
2384
81411.1
739.1
APPAREL INDIA
2520
Total RMG Import from
World, US$ Mn.
Exports to World
711.0
2012
% Change
2013/2011
2012
79616.4
2011
CAGR in%
2011-2013
2011
79461.5
2013
Focus
India's Share in total
Woven RMG Import from
world in%
India's Share in total Knit
RMG Import from world
in%
2013
% Change
2013/2011
6.7
7.8
28.5
27.4
1428
7.2
5.2
1289
6.3
10.8
32
45.2
37.0
13
3.6
8.5
1.7
20.4
18.2
1.7
2.3
35.5
30.2
1.0
1.0
-2.5
-2.1
36
2716
CAGR in%
2011-2013
45
Source: UN Comtrade, 2014
Major Suppliers to Chile for RMG
Chile imported worth of US$ 2716.3 million which is 7.8%
higher than previous year. China is the largest supplier among
the apparel suppliers with 79.5% share in 2013 followed by the
India, USA, Vietnam and Bangladesh. India is the 3rd largest
supplier with 1.7% share. Export of apparel from India increased
by 27.4% in 2013 compared to last year. Exports of Apparel from
India are to the tune of US$ 45.3 million in 2013 which was US$
35.5 million in 2012.
APPAREL INDIA
51
Focus Country
Country
Chile’s Imports of RMG at the 4 Digit
HS Code level during 2013
Below in the table 4 top 10 RMG
Table 4: Major Apparel Suppliers to Chile
Rank in
2012
Supplier
Countries
Exports in US$ Mn.
2010
2011
2012
Share in%
% Change
2012/2011 2010
2011
2012
100
100
% Change
2012/2011
World
2384.02519.9 2716.3
1
China
2025.8 2095.22158.7 3.0 85.0
2
Area Nes
45.4
53.9
74.0
37.2
1.9
2.1
2.7
27.3
3
India
27.4
35.5
45.3
27.4
1.1
1.4
1.7
18.2
4
USA
35.3
31.1
41.8
34.5
1.5
1.2
1.5
24.8
5
Viet Nam
20.8
33.1
40.9
23.6
0.9
1.3
1.5
14.7
7.8 100
83.1 79.5
0.0
Bangladesh
15.7
20.8
33.3
59.5
0.7
0.8
1.2
48.0
7
Peru
27.0
27.8
31.7
14.0
1.1
1.1
1.2
5.8
8
Italy
13.8
17.3
23.2
34.2
0.6
0.7
0.9
24.5
9
Spain
12.2
14.0
20.4
45.6
0.5
0.6
0.7
35.0
10
Panama
13.2
16.0
18.8
17.3
0.6
0.6
0.7
8.8
30.4
6.2
6.9
8.4
147.5
175.0
228.2
Source: UN Comtrade, 2014
21.0
in case of import from India only 18 product categories saw positive
growth in 2013 compared to previous year.
Below in table 4 top 5 apparel import of Chile from India and
comparative position of imports from rest of world are depicted. These
top 5 import items accounted for 40.5% share in total apparel import
of Chile from world while the same product categories accounted for
60% share in India’s total apparel export to Chile in 2013.
Table 4: Major Apparel Suppliers to Chile
-4.4
6
Rest of the World
(RoW)
There were 34 apparel items at HS 4 digit imported by Chile from
world. Chile apparel imports in terms of value have increased for all
categories. There were 29 product categories where there has been
positive growth over the previous year in value terms form world while
Focus
Rank in HS
2012 code
Product
label
RMG
1
2
3
4
5
Women's suits,
'6204 jackets,dresses
skirts etc &
shorts
Women's
'6206 blouses & shirts
Men's suits,
jackets,
'6203 trousers etc &
shorts
Men's
shirts
'6205
'6109
T-shirts,
singlets and
other vests,
knitted or
crocheted
Exports in US$ Mn.
2010
2011
2012
Share in%
% Change
2012/2011 2010
2011
% Change
2012/2011
2012
27.4
35.5
45.3 27.4 2384.0 2519.92716.3
7.8
5.3
6.9
7.5
7.4
292.7
331.9
334.7
0.9
3.7
4.8
6.2
29.2
63.8
80.4
86.2
7.2
0.6
1.6
5.1 217.8
275.0
323.6
282.4
-12.7
1.1
2.6
4.5
69.6
113.4
116.3
111.9
-3.8
5.6
4.3
4.0
-6.3
293.6
298.0
284.3
-4.6
Source: UN Comtrade, 2014
52
APPAREL INDIA
APPAREL INDIA
53
BRAND News
News
Indian kidswear firm gets Rs 500 mn
funding from ASK Pravi
H&M to open first
store in India in
2014
H&M will open its first store in India this year as the world’s secondbiggest fashion retailer becomes the latest to take advantage of the
opening of its economy to foreign operators.
The Swedish retailer which said last year it plans to spend around
100 million euros on an initial 50 stores in India, received final
approval in December 2013 from the Indian government to invest
in the country and plans an initial investment in 50 stores in a bid
to catch up with its rival, Zara owner Inditex, in emerging markets.
It joins a flurry of international retailers, including Swedish
furniture chain IKEA, looking to plant a flag in India after its
government moved in 2012 to allow foreign firms to set up wholly
owned subsidiaries in the country. Inditex is already in India
through a joint venture.
Despite worries over inflation in India, which have triggered a
succession of interest rate rises from the central bank, H&M chief
executive Karl-Johan Persson said: “It is one of the most exciting
countries in the world right now, with so much potential.”
H&M has not yet decided where the first store will be opened and
is looking at several big cities and locations, but can act fast now
it has government approval, a spokeswoman said.
The Swedish retailer has almost tripled store numbers over the
past decade to over 3,100 outlets in 53 countries, but it has
lagged bigger rival Inditex (ITX.MC) in expanding in fast-growing
emerging markets.
H&M still makes about 80% of sales in Europe, while Inditex,
with over 6,000 stores in 86 countries, makes about 20% of sales
in Asian economies versus 6% for H&M.
H&M said last month it planned to open 375 new stores worldwide
in 2014, including 80-90 in China. It also plans to enter Australia
and the Philippines this year.
Indian retail consultancy Technopak has predicted the textile and
clothing market in the country would more than double to US$141
billion by 2021, from US$58 billion in 2012.
Bata India debuts first Hush Puppies
global concept store
Bata India, one of the largest and most trusted footwear brands
announces the launch of their first premium global Hush Puppies
store at Rajpur Road, Dehradun, India. The showcased season
collection takes inspiration from getting out of the ordinary and
embracing change. As part of this campaign the brand has taken to
an amalgamation of different colours, materials and styles that will
add to your spring wardrobe and help you soak up the sun.
Spread over 750 sq ft, the Hush Puppies store has been completely
designed to suit the needs of their customers. The showroom
offers semi-formal and formal shoe collections including coloured
moccasins, bright textured leather, and canvas shoes. It also offers
its Signature collection which is priced between Rs 1,599 and Rs
7,999. Considered as the leader in “International Premium Casual
Lifestyle category, Hush Puppies has 35 concept stores in India.
54
APPAREL INDIA
BRAND
Bata India retails through over 1,358 stores located in over 500
cities across India.
Indian Clothing League, the Chandigarh-based kidswear firm
that owns 612 Ivy League and Baby League brands, has received
Rs. 500 million funding from ASK Pravi PE Opportunities Fund,
a mid-market private equity fund. The funding will enable the
kidswear company to increase its manufacturing capacity and
expand its retail footprint. At present, the company retails its 612
Ivy League and Baby League brands through online ecommerce
sites like Jabong and Flipkart, as well as through mutli-brand
outlets like Shoppers Stop, Central and Reliance Retail. ASK
Pravi PE Opportunities Fund is a nine-year Rs. 3 billion fund
launched in 2012 to invest in four sectors, viz. consumer products,
consumer services, healthcare and education. The fund focuses
on unlisted companies and last August it invested in Hyderabadbased OMNI Hospitals. With the investment, ASK Pravi would
get a significant minority stake in Indian Clothing League, where
Jayanta Banerjee and Anand Vyas, managing partners of ASK
Pravi Capital Advisors, will join the board of directors. Indian
Clothing League has a pan-India network of more than 275 sale
points spread over 80 towns and cities.
Apparel retailer Freecultr bags innovative
concept award
Premium Lifestyle Brand, FREECULTR was awarded for its
innovation in retail at Asia Retail Congress 2014, held in Mumbai
from February 13 to 14, 2014. Prestigious awards included ‘Top
50 Retail Professionals of India’ and ‘Most Innovative Retail
Concept’ for the proprietary Touch Screen App, TapShop, created by
FREECULTR. Having launched operations in 2011, purely focusing
on online markets and being true to the brand ethos, FREECULTR
has successfully executed an innovative digital physical store model
that blends the tactility of a physical store with the efficiencies of
the internet – seamless modern retail at its best. With their recent
store launches in New Delhi, Chandigarh and Noida, FREECULTR
has successfully implemented this first-of-its-kind hybrid, high tech
approach of shopping, offering customers the best of both worlds –
online convenience married with offline experience. Asia Retail
Congress is one of Asia’s leading global platforms to promote world
class retail practices, and recognized the strong strides being made
by FREECULTR in the national retail industry. Speaking on the
occasion, Sandeep Singh, CEO and Co-founder of FREECULTR says,
“FREECULTR has always stood for style, quality and innovation,
and as we grow from strength to strength, we have consistently tried
to resonate our brand ethos. Even our physical stores offer digital
applications like our TapShop App with integrated LED screens,
providing a virtual extension to our physical store space. Being
recognized by a prestigious platform like Asia Retail Congress is
a true testament to our innovation and continuing efforts.” The
proprietary Touch Screen App, TapShop, is a unique “discovery
application” developed by FREECULTR, allowing shoppers to
discover, style and buy from the complete collection of FREECULTR,
while at the store. This “digitally” connected store is a visual and
interactive experience that integrates touch screens, digital hangers,
product videos, tablets, and scanners to deliver new campaigns, high
resolution catalogue browsing experience and styling Ideas, to allow
consumers to replicate the power of online purchasing experience in
a physical store environment. Through a wireless bar code scanner
you can tap on any product’s bar code which will then appear on the
TapShop Screen, also showing other products it can be paired with,
other colour options of the same product and much more.
APPAREL INDIA
55
BRAND News
News
Arvind & Goodhill team up to offer highend suits in India
Arvind Goodhill Suit Manufacturing (P) Ltd, a joint venture between
Arvind Ltd. & M/s Goodhill Corporation of Japan, announced launch
of formal suits today. The joint venture firm has set up a Greenfield
suits manufacturing facility based out of Bommansandra Industrial
estate in Bengaluru, to produce high-end formal suits catering to the
needs of evolved Indian and Overseas customers.
The unit has started with two lines each for jackets and trousers,
with the capacity to produce 350,000 pieces of jackets and 600,000
pairs of trousers annually. In its first year of operation, it expects to
achieve a turnover of around Rs. 100 Cr.
Commenting on product launch, Mr. Kulin Lalbhai, Executive
Director, Arvind Ltd, said, “With this venture, Arvind Ltd has
entered into the worsted segment and suits manufacturing,
expanding its product portfolio offering. The Company now offers
a complete vertical solution in the garmenting space ranging from
suits to jeans and from formals to casuals. With Goodhill’s design
and process technology, we will be able to target the premium
market and offer our customers a product made in India and marked
to perfection.”
Mr. Hideki Yoshioka, President, Goodhill Corporation Ltd, Japan
said, “With its diverse culture and large population base, India
offers immense growth potential for suiting business. Through this
joint venture with Arvind Ltd, we will have the advantage of the
wide network presence of one of India’s largest apparel brands and
retail players. With over 50 years of experience in this space we
intend to bring the best technology and collaborate with Arvind to
bring world class products to India. We believe this collaboration
About Arvind Limited
Arvind Ltd. has mastered the learning curve of growing strong new
brands - 5 out of top 10 international brands in India have been built
by Arvind. The Company has ability to address diverse segments
through a differentiated portfolio – it has a presence across market
segments, dominant in many segments already. Arvind has strong
distribution strength to quickly grow new brands - high bargaining
power within channels, strong reach leading to fast ramp-up. It is
able to build strong and cost-effective supply chain and is able to
rationalise the cost of building brands.
About Good Hill Corporation
Good Hill Corporation is a Japanese suits manufacturing company
that was established in 1961, and expertises in manufacturing of
men’s as well as women's suits. Apart from this Indian venture,
they have 4 factories in Japan and 1 in China. They are one of the
leading suits manufacturers in Japan, with a market share of 40%
in customised clothing. The group also has retail presence in Japan
through their reputed brand F-one.
56
APPAREL INDIA
Arvind to set up
garment park in
Gandhinagar
Ahmedabad-based Arvind Limited, an integrated textile
and branded apparel player, is setting up a garment park in
Gandhinagar, in which it would also have its own apparel
manufacturing facility.
Arvind Ltd. is setting up a garment park through its subsidiary
Arvind Garment Park Pvt. Ltd. at an estimated cost of around Rs.
1.5 billion, Mr. Jayesh K Shah, director and chief financial officer
of Arvind, told fibre2fashion.
The company would invest another Rs. 1.25 billion to set up its own
clothing unit with a capacity to produce about nine million pieces
annually, he informed. The unit is likely to become operational
within a year and is likely to fetch around Rs. 6 billion in revenue
annually. The garment park would have around 20 garment
manufacturing units within its premises, which are expected to
invest about Rs. 3 billion, Mr. Shah said. The park, expected to
go operational in March-April 2015, would have capacity to earn
around Rs. 15 billion, mostly through exports, he added.
A flagship company of the Lalbhai Group, Arvind reported better-
will turn out to be a perfect entry to the Indian market.”
Currently producing 6 million pieces of jeans and 4 million pieces
of shirts annually out of their 7 production facilities in Bengaluru,
Arvind is expanding its offering to offer complete solution to its
customers who are the most marquee global and Indian names in
apparel brands and retail.
BRAND
than-expected earnings in the third quarter ended December
31, 2013. Helped by higher revenues in textile and retail
segments, the company posted 35.56% year-on-year growth in
its consolidated net profit at Rs. 1.02 billion in the OctoberDecember 2014 quarter.
Raymond, West Bengal govt sign MoU
for Skill Development
Raymond Limited, one of India's largest branded fabric and fashion
retailers, and leading manufacturer, marketer and retailer of
worsted suiting fabrics, has signed a memorandum of understanding
(MoU) with the government of eastern Indian state of West Bengal
for imparting skill development training in tailoring to unemployed
youth from the state.
As per the MoU between the Skilled Training Institute by Raymond
(STIR) and the Department of Technical Education and Training
(DTET) of the West Bengal government, two centres for skill
training in tailoring, one each at Mominpur in Kolkata and Domjur
in Howrah, would be set up.
The infrastructural support for setting up the training institute
would be provided by the state government, while Raymond would
provide experts to train the individuals.
Raymond is already implementing similar skill development
initiatives in Bihar, Uttar Pradesh and Rajasthan, and is planning
to open 20 more centres across India during the next five years with
an aim to train 6,800 youth free of cost.
Raymond has around 700 shops in India, and on successful
completion of the training, the youth can look forward to get
employed in any of these stores, or can also create self-help groups.
The institutes would offer two courses of six months and one year
duration. The six-month course would impart training related to
stitching trousers and shirts, while the one-year course will also
teach stitching suits.
APPAREL INDIA
57
AEPC
Notifications
Notifications
AEPC-Payment of Annual Subscription by Member &
Registered Exporters for the Financial Year 2011-12,
2012-13 and 2013-14.
The Annual Subscription for Financial Year 2011-2012, 2012-2013 and 2013-2014 by Member &
Registered Exporters could be deposited up to 30/09/2013.
Some of the exporters have represented that they could not remit the Annual Subscription on time and
requested to further extend the date for payment of Annual Subscription for financial year 2011-12,
2012-13 and 2013-14.
Therefore, the Executive Committee in its meeting held on 22/11/2013 at Chennai
has decided to further extend the last date for payment of annual subscription
(Member & Registered Exporters) as under:
Financial year Last date of Payment Amount of Rs.
2011-12 (Regd. Exporters) 2012-13 (Member Exporters) 31/03/2014 31/03/2014 9551/10388/-*
2012-13 (Regd. Exporters) 2013-14 (Member Exporters)
31/03/2014 31/03/2014 9826/-*
10388/-*
2013-14 (Regd. Exporters) 31/03/201 9826/-*
Amendments in Chapter 3 of Foreign Trade Policy
2009-14
S.O.(E) In exercise of the powers conferred by Section 5 of the Foreign Trade (Development
and Regulation) Act, 1992 read with Para 1.3 of the Foreign Trade Policy, 2009-2014, the
Central Government hereby makes the following amendments in the Foreign Trade Policy
(FTP) 2009-14 with immediate effect:
 Para 3.15.3 of FTP 2009-14 is amended [Portion being added has been marked
in bold letters] to be read as under:
“3.15.3 Market Linked Focus Products Scrip (MLFPS):
Export of Products/Sectors of high export intensity/employment potential (which are not covered
under present FPS List) would be incentivized @ 2 % of FOB value of exports (in free foreign
exchange) under FPS when exported to the Linked Markets (countries), which are not covered
in the present FMS list. Such products will be listed in Table 2 or Table 3 of Appendix 37D of
HBPv1, for exports made from 27.8.2009 onwards, unless a specific date of export/period is
specified by public notice/notification.
58
APPAREL INDIA
AEPC
 Para 3.15.4 of FTP 2009-14 is inserted and would be read as under:
3.15.4 “Incentive to the products listed in Table 3 will be in addition to any benefit which the
same item may be entitled to under Table 1 or Table 2 of Appendix 37D.”
Effect of this Notification: A new Table 3 has been added in Appendix 37 D which would be
entitled to additional benefits.
For details on Table 1 or Table 2 of Appendix 37D.” log on to : http://dgft.gov.in/Exim/2000/
PN/PN13/pn5313.htm
Foreign Trade Policy 2009-14 (RE-2013) was to
remain in force until further order
S.O.(E) In exercise of powers conferred by Section 5 of the Foreign Trade (Development &
Regulation) Act, 1992 read with paragraph 1.3 of the Foreign Trade Policy (FTP) 2009-2014,
as amended, the Central Government hereby makes an amendment in paragraph 1.2(a) of FTP
2009-2014(RE-2013) by substituting the phrase “shall remain in force upto 31st March, 2014
unless otherwise specified” by the phrase “shall remain in force until further orders.”
 The amended paragraph 1.2(a) of FTP 2009-14 (RE-2013) would be as under:
1.2 (a) “The Foreign Trade Policy (FTP) 2009-2014, incorporating provisions relating to export
and import of goods and services, shall come into force with effect from 27th August, 2009 and
shall remain in force until further orders. All exports and imports upto 26th August 2009 shall
be accordingly governed by the FTP 2004-2009.”
Effect of this notification: The existing Foreign Trade Policy 2009-14 (RE-2013) was to remain
in force until 31.3.2014. To provide continuity in policy environment, this is being extended
beyond 31.3.2014 until further orders.
Notification No. 05/2014-Customs dated 17.02.2014
Please note that the Interim Budget has been presented and the Ministry of Finance,
Department of Revenue has issued Notification No. 05/2014-Customs dated 17.02.2014 by
making amendments in the Notification No. 12/2012-Customs, dated 17.03.2012.
As per the notification, the import of lining and inter-lining materials including knitted lining
and interlining shall be restricted to 2% of the FOB value of the garments exported and value
realized during 2013-2014 within overall export performance certificate issued at 3% of the
FOB value of the garments exported and realized during 2013-14. The facility is available
to the eligible manufacturer exporters & merchant exporters (having tied up with supporting
manufacturer of textile garments) for issuance of EPC.
APPAREL INDIA
59
AEPC
Notifications
Customs Baggage Declaration Regulations 2013–
implementation thereof-reg
Attention is invited to Customs Baggage Declaration Regulation, 2013 notified vide
Notification No 90/2013-Cus (N.T.) dated 29.08.2013 subsequently amended vide Notification
No. 133/2013-Cus. (N.T.) dated 30.12.2013 and Notification No. 10/2014-Cus (N.T.) dated
10.02.2014. The Customs Baggage Declaration Regulations, 2013 will come into force with
effect from 1.03.2014.
• Under the Customs Baggage Declaration Regulations 2013 all incoming international
passengers will be required to declare the content of their baggage in the Indian Customs
Declarations Form prescribed in the regulation. Therefore the declaration relating to
Customs purposes by incoming passengers in arrival card notified by MHA hitherto done
by passengers will be dispensed with. In other words, the incoming passengers will have to
fill up the form notified under Customs Baggage Declaration Regulations 2013 independent
of the form prescribed by the MHA. Ministry of Home Affairs has decided that arrival
(disembarkation) card of MHA would be given to foreign nationals only.
• Directorate of Publicity and Public Relations, New Delhi has been requested to print the
Indian Customs Declarations Forms and distribute the same to all Commissioners of Customs
having jurisdiction over the airports. The Indian Customs Declarations Forms may also be
handed over to concerned airlines for distributing the same among the passengers.
• Board desires that the Commissioners of Customs should sensitize field formations working
at airports so that this arrangement should not disrupt passenger facilitation at the airports.
Notification No. 08/2014 – Central Excise (N.T.)
G.S.R. (E). - In exercise of the powers conferred by section 37 of the Central Excise Act, 1944
(1 of 1944), the Central Government hereby makes the following rules further to amend the
Central Excise Rules, 2002, namely:—
• (1) These rules may be called the Central Excise (Amendment) Rules, 2014.
(2) They shall come into force from the 1st day of April, 2014.
• In the Central Excise Rules, 2002, in rule 9, in sub-rule (1), after the words ―uses excisable
goods‖, the words ―or an importer who issues an invoice on which CENVAT. Credit can be
taken‖ shall be inserted
60
APPAREL INDIA
APPAREL INDIA
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Apparel Export Promotion Council
Apparel House, Sector 44, Gurgaon, Delhi NCR, India
Tel: 91 124 2708000-03 Fax: 91 124 2708004-05 Website: www.aepcindia.com
Registered Address: B-5, Anupam Plaza, Sri Aurobindo
Marg, Hauz Khas, New Delhi- 110016, India
Apparel India is a publication of the Apparel Export Promotion Council (AEPC).
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takes over as President of India
INDIA INTERNATIONAL
GARMENT FAIR
Spring/Summer
14-16 July,
2014
2015
Pragati Maidan,
New Delhi, India
NEW FASHION VISTAS
TRENDY
INNOVATIONS
NOVELTY
Kid’s Wear
Fashion Accessories
Men’s Wear
Women’s Wear
Director, Fair & Exhibition Department, International Garment Fair Association, Apparel House, Institutional Area, Sector-44,
Gurgaon - 122003 (Haryana) India, Tel: + 91-124-2708027/8129 • Fax: +91- 124-2708004 • Mobile: 9899014590
Email: info@indiaapparelfair.com, Website: www.indiaapparelfair.com