epages News [Cloth Showrooms, March 2003]

Rana to take up textile sector's concern

Mar 03, 2003: New Delhi: Textiles minister Kashiram Rana has said he would address next week the concerns of the textile industry in the wake of the Budget for 2003-04 bringing sectors like powerloom under the excise net.

“We propose to convene a meeting of the industry on March 6 to assess their reaction to the duty rationalisation measures announced in the Budget. If there are legitimate concerns we will take it up,” Mr Rana said. He said the government would ensure that there was no harassment to the manufacturers who were coming into the excise net for the first time. Welcoming the duty cuts announced in the Budget, Mr Rana said the proposals would bring down the cost of textiles across the board, making it more affordable, propel demand and enthuse manufacturing activities. He also expects substantial increase in the flow of funds to the sector with unification of the cenvat chain.

Raymond hopes premium suitings will be a good fit

Mar 03, 2003: Kolkata: Super premium fine woollen suiting may be finding it tough to be the perfect fit in the Indian market, but Raymond is determined to give this segment a try. After launching its Super 200S fabric under its existing Chairman's Collection (CC) with a price tag of Rs 80,000 a suit length, Raymond is trying a different marketing tack, avoiding any kind of big Budget campaigns. Instead, Raymond is directly approaching prospective customers — Bollywood celebrities and corporate honchos, to convince them to wear its suitings.

Being asked whether this is the right time to market this product, Mr Gupta claimed achieving a fair amount of success in selling the earlier launches under the CC umbrella ranging up to the Super 190S category which is available in the market for about Rs 60,000 per suite length. “Earlier launches have given us a lot of confidence. We will be able to offer Super 200S at Rs 80,000 per suite length approximately around one-third of its global market price,” he said.

RIL hikes price of polyester

Mar 04, 2003: Reliance Industries has hiked polyester, polymer and fibre intermediates prices with effect from March 1, 2003. The maximum price hike was in the prices of polyester staple fibre and purified terepthalic acid. While PSF prices went up by 21.9% to Rs 71 per kg, PTA prices rose by 24% to Rs 46.5 per kg. Polyester filament yarn prices rose to Rs 77.75 per kg from Rs 71.1 per kg, while PET prices moved up to Rs 67.5 from Rs 58.5. Mono ethylene glycode prices rose to Rs 46.6 per kg from Rs 39.5 per kg.

The company has hiked polyethylene prices by 6.98% from Rs 43.2 per kg to Rs 46.2 per kg. Polypropylene prices rose to Rs 51.35 per kg from Rs 50.35 per kg. Poly vinyl chloride remained at Rs 43.1 per kg. According to industry sources, prices have moved up in tandem with the global prices. Global shortage of paraxylene — the main raw material for fibre intermediates is being cited by Reliance as the major reason for the hike.

AP, TN lure private players to boost silk production

Mar 06, 2003: Even as many silk producing states are cold to the idea of contract sericulture farming, Andhra Pradesh and Tamil Nadu have moved ahead to woo substantial private investment in the sector. Tidal Silk Industries, based in Andhra Pradesh has started forging contracts with the state's sericulturists to procure mulberry cocoons. Backed by assured supply of cocoons, it has lined up an investment of Rs 500 crore to set up modernised reeling centres, together with downstream units for spinning yarn and making silk fabrics in the state. Having secured the right to enter into contract with farmers, now private silk producers in these two states can buy cocoon directly from the primary producers.

The collar of money

Mar 06, 2003: Some 20 years back, global apparel majors such as Tommy Hilfiger, Ralph Lauren and others diversified into the fashion accessory business through brand licensing. It's now the turn of local apparel top boots to pace the territory. DK Eyewear, one of India's largest eyecare product makers, will sell sunglasses under the Provogue brand at its 2,000 optical stores. Provogue will earn 10% sales royalty for licensing the product.

Faced with falling garment margins, Aditya Birla group Company Indian Rayon has taken up brand licensing for accessory products. The company's garment division, Madura Garments, has entered into licensing agreements with Genesis to manufacture ties. Genesis, a New Delhi-based company, makes ties under the Van Heusen, Allen Solly and Louis Phillipe brands — the three major apparel brands of Madura Garments. The Birlas are now close to signing licensing agreements for leather products and socks. The accessory business will bring in more footfalls at the franchisee shops

Grasim's blended polyester fabrics may cost more

Mar 07, 2003: Kolkata: Aditya Birla Group Company, Grasim, is considering an across-the-board price hike for its polyester blended fabrics. This follows the rise in prices of polyester fibre during last month, in tandem with rise in petroleum prices. Company officials said that the Budget has offered Grasim the option to reduce fabric prices, but passing on the benefit to customers will have to wait till the company gauges the impact of the value added tax (VAT).

Textile industry sources said that other biggies like Raymond and JCT too were facing a similar predicament and were likely to hike prices as soon as VAT is implemented. Union finance minister Jaswant Singh in his Budget proposals has announced a reduction in the excise duty of polyester filament yarn from 32% to 24%. He has also proposed a similar reduction in the excise duty on all spun and other filament yarns from 16% to 12%.

Duty rationalisation to prop textile sector

Mar 08, 2003: New Delhi: The Budget affected possibly the largest-ever fiscal revamp for the country’s huge and largely laggard textile industry. It also committed to launch a scheme for technically viable units to access low-cost credit. The finance minister brought under the excise net woven unprocessed fabrics, produced predominantly in powerloom sector. He also completed the Cenvat chain by doing away with the deemed Cenvat credit that was enticing excise evasion. The Budget also limited the exemption for processing sector to genuine hand processors and withdrew exemption to units using power and steam.

The FM took the bold decision to bring, for the first time, the powerloom sector, that accounts for roughly 96% of the fabrics produced in the country, under the excise net. Removals of optional duties for grey fabrics and knitted fabrics as well as knitted garments were other major steps in the Budget. About 50% of the processing sector units kept themselves out of the excise cover due to exemptions.

Withdrawal of excise sops hits hosiery units hard

Mar 08, 2003: Kolkata: The finance minister’s proposal in Budget ‘03 to withdraw optional exemption on excise duties on woven, knitted and crocheted fabrics and garments has thrown thousands of small hosiery units into disarray. Till this fiscal, hosiery units had the option of paying excise duties. Union finance minister, Jaswant Singh has changed all that in his budget proposal this year and now every hosiery unit will have to pay 8-10% excise, irrespective of whether Cenvat is claimed or not. Budget ‘03 has proposed a reduction in excise duty on knitted and crocheted fabrics made of cotton from 12% to 8% and on non-cotton knitted and crocheted fabrics from 12% to 10%. As for cotton knitted or crocheted garments, it has proposed to reduce the duty from 12% to 8%.

Fashion searches for new text

Mar 10, 2003: Mumbai: The India Fashion Week (IFW) may well be the Fashion Design Council of India (FDCI)’s best calling card, but chief Vinod Kaul is determined to do value add to the business behind the ramp in a bid to increase the market for the Indian fashion, both domestically and internationally. Following on the heels of FDCI’s first-ever commissioning of a detailed study on the Indian fashion industry to KPMG, Kaul and FDCI are moving onto a first-ever niche exhibition, Fibres of Fashion (FoF) which caters to the need for premium fashion and innovative fabrics.

Participation in the exhibition is by invitation from FDCI, with a very strict selection process, “primarily because there are enough textile fairs” limiting the participation for FoF to just 30. Most mills represent new innovations in terms of blends and new fabric developments. Besides fabrics, accessories suppliers will also be part of the niche exhibition.

Hilfiger to enter India, seams up with Arvind

Mar 10, 2003: Mumbai: Tommy Hilfiger, one of the largest-selling apparel brands in the US, is coming to India. The $6-billion apparel giant Tommy Hilfiger Corporation has entered a strategic licensing agreement with the Ahmedabad-based Arvind group to market the Tommy Hilfiger brand in the country. After signing the pact two weeks ago, both players are awaiting mandatory approvals from the Reserve Bank of India and Foreign Investment Promotion Board (FIPB).

Under the agreement, Arvind Brands, a wholly-owned subsidiary of Lalbhai group flagship Arvind Mills, will sell Tommy Hilfiger products. Arvind Brands, which owns the Indian marketing rights for leading US brands like Arrow, Lee and Wrangler, is planning to market products through exclusive Tommy Hilfiger stores and departmental chains.

Burlington eyes India as sourcing base for fabrics

Mar 12, 2003: Mumbai: The US-based Burlington Industries, which sells fabrics to leading brands like Levis, Pepe, Marks & Spencer and Vanity Fair, plans to make India a sourcing base for fabrics. Burlington Industries currently has manufacturing facilities in Mexico and the US. It is in the process of drawing up plans to expand its manufacturing base to Asia, including India.

It makes 10m metres of denim fabric annually and is now doubling its capacity to 20m metres for an investment of Rs 60 crore. The denim plant is at Navsari in Gujarat. The joint venture company, Mafatlal Burlington Industries exports around 85% of its produce to 25 countries across the globe.

Consultants, auditors out to tap the textile party

Mar 12, 2003: Coimbatore: The new restructuring package announced for the potentially viable textile units, announced in the ’03-04 Budget, has pulled to the forefront the financial and technical consultants and audit firms. Even before the modalities of the revamp package are unveiled, constituents in the textile sector are feverishly discussing ways to project the units of their clients potentially viable.

Sensing the urgency of the ailing units, the consultants have started marketing their USP. Besides, the statutory audit firms of some of the mills are likely to enter the fray to offer their service once the package is out, albeit at an additional cost. The consultants and audit firms for the textile companies have a role to play in enabling the units to stake a claim in the package. Even the genuinely viable units have to showcase their merits to convince the stakeholder, banks or financial institutions.

Readymade garments exports up by 33.04% in Feb, 03

Mar 13, 2003: New Delhi: Continuing their upbeat performance, readymade garments exports registered a rise of 33.04% in value terms at Rs 2,320.95 crore in February this year as against Rs 1,781.71 crore in February last year. In quantity terms, exports to quota countries rose 18.49% to 132 million pieces against 111.4 million pieces in February 2002. According to data compiled by Apparel Exports Promotion Council, exports to US in last month witnessed a rise of 28.83% in terms of quantity and 30.40% in terms of value.

While exports to European Union were up by 15.31% in quantity terms and 36.48% in value terms, exports to Canada rose by just 2.86% in terms of quantity and 21.36 in terms of value during February 2003.The exports during the first two months of the calendar year amounted to 292.4 million pieces, valued at Rs 5,193.24 crore, which signifies a jump of 25.01 in terms of quantity and 42.31 in terms of value over the same period last year.

Italian textile cos say local cos give the perfect cost fit

Mar 14, 2003: The Indian arm of the Italian textile major Tessitura Monti, are pulling out all stops to commence commercial production at a fabric plant in the first week of April. The Italian connection for the Indian textile industry is increasing by the day. Italian companies are taking different routes to establish their presence in India. Consider, for instance, Tessitura Monti. Its fabric plant is located close to major yarn manufacturing units like Amith Spinning, Indo-Count and Eurotex. The Italian company will not only get its raw material, cotton yarn, at very low prices, but will also see all restrictions on exports go, once textile quotas are scrapped in ’04.

“Manufacturing cost is very low in India. The first consignment from our unit will move to Italy in a couple of days,” said GP Albal, director technical, Tessitura Monti. Italian textile companies are short of skilled manpower since many educated people in that country have been opting for service industries like software. While manpower cost is as high $20 per hour in Italy, the cost in India is as low as $1 per hour.

Indian Terrain to enter knitwear

Mar 15, 2003: Bangalore: Indian Terrain, the branded apparel label promoted by Rs 100-crore, Celebrity Fashions, plans to foray into the knitwear segment in the next six months and follow that up with a move into the women’s wear category. The firm currently offers a range of semi-formal wear for the 25-40 yrs age group.

Indian Terrain hopes to sell around 1.5 lakh garments of its spring-summer collection, in the March-July period. In an effort to increase its visibility, Indian Terrain is also working on a product-focused print media campaign. The apparel firm had previously used the ‘I-inspired work wear’ electronic media campaign, which aimed to project its customers as non-conformists for whom ‘I’ is the centre of their universe. The company has thus far spent Rs 2 crore on ad campaigns and will double this amount going forward.

Raymond to take Be chain abroad

Mar 15, 2003: Kolkata: Brand Be was initially floated by Raymond predominantly for the Indian upper-class ladies and includes ready-to-wear garments and accessories. The brand is about to experience a restructuring which will include promoting Be as an international brand by setting up outlets in some major cities across the globe. Paris is one of the probable destinations. Raymond is also planning to increase the range of accessories under Be.

Centre to help textile mills retire high-cost debt

Mar 20, 2003: New Delhi: The finance ministry, in keeping with the Budget commitment to reduce sickness in the textile industry, is considering a slew of measures to assist viable domestic companies to retire expensive debt and get rid of their NPA status.

While these measures would hinge chiefly on low-cost foreign lines of credit, domestic financial institutions too would have key role in the scheme, as providers of counter-guarantee to the foreign loan. The FIs would re-lend funds from multilateral and bilateral agencies, including the Asian Development Bank and KFW of Germany, to the textile units fulfilling the criteria of fundability laid down by them.

Cotton industry heads for major crisis

Mar 24, 2003: The Indian cotton textile industry, which boasts of around 2,000 machine units producing around 3,000m kg of yarn and over 40,000m square metres of fabric appears to be heading for a major crisis. The Union Budget has tried to provide some relief to this industry, soaring costs are unlikely to help any speedy revival. The price of cotton, the basic raw material, for the industry is scaling new highs as the indigenous production has dipped to the lowest level in a decade. At the same time, the industry, which imported 25.3 lakh bales of cotton, an all-time high level, last year is finding it difficult to get it cheaper either.

During first 4 months, the peak arrival period for new crop, the price of DCH is up by 30% YOY, MCU-5 by 40%, Shankar-6 by 45% and LRA by 50%. At the same time the Cotlook `A’ index has zoomed to 60 US cents from 39.5 cents, amounting to a 50% rise in prices in international markets. Over and above it attracts 10% customs duty.

Centre plans anti-dumping duty on Chinese silk

Mar 26, 2003: Bangalore: The government has established a case of “dumping” by China of low cost silk in the country and a decision on taking anti-dumping action against Beijing would be finalised in a month. The final order by the commerce ministry on WTO is awaited this month against Chinese silk exports to India. Following an interim order in December by the appellate authority against Chinese imports at less than 33%, the imports had reduced and domestic silk prices had increased to a “stable level”.

TBWA to rebrand Indian outfit

Mar 27, 2003: New Delhi: Advertising agency TBWA-Anthem is changing its name to TBWA-India. The move is seen as a prelude to TBWA hiking its stake in the Indian outfit from 51% to 74%. Anthem, an Indian agency floated by George John, was partially acquired in 1998 by the Omnicom Group, the global holding company of the US-based TBWA Worldwide ad network. As of now, the global parent holds 51% and the rest is held by Indian promoters. TBWA recently rebranded its subsidiaries in Japan, Thailand, Singapore, Hong Kong and South Korea, which also had local shareholding structures. Barring Singapore, where the local promoter was not interested in running the agency and sold out to TBWA, all other resident promoters have retained some shares in their respective outfits.

Cotton Corporation board declares 10 % dividend

Mar 28, 2003: Mumbai: Cotton Corporation of India Ltd's (CCI) board has declared a 10% interim dividend for 2002-03 after a gap of almost 26 years. The last dividend was declared by the state-owned entity in 1976-77. The dividend cheque of Rs 2.5 crore was handed over to Union Minister of Textiles Kanshiram Rana.

Meanwhile, it has also signed a memorandum of understanding with ministry of textiles for 2003-04, wherein CCI has committed sales of nine lakh bales of cotton and profit before tax, interest and depreciation of Rs 25 crore. CCI has also undertaken to bring down sundry debtors and increase its sales to private sector mills, process larger number of contamination free cotton bales and ensure completion of projects sanctioned under Technology Mission on cotton at a faster pace.

Desi colours are haute on global fashion stage

Mar 31, 2003: Hong Kong: Fashion is all about monsoons. And monsoon is a collage of colours and images drawn from the rich natural landscape of India. Fashion pundits and global apparel industry experts, gathered for the Interstoff Asia Spring, Asia’s largest international fabric fair believe that global fashion trends will be greatly influenced by themes from India in the next two seasons. Indian images give nostalgic and sensual feelings. This summer/spring season, global fashion circuit is focusing on an Indian theme called monsoons. Global apparel companies are trying to blend the Indian ethnic inspirations with the aspirations of the modern world. Youth in the UK is keen on portraying the image of spiritualism through their clothes.

 
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