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Page 1: Perfect Sourcing December 11
Page 2: Perfect Sourcing December 11
Page 3: Perfect Sourcing December 11

Apparel Mart Coming in Jaipur

DE

SIG

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ME

DIA

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12Spring Summer

ForeCASt

inside...

4 perfectsourcing n DECEMBER 2011

10. cover story

06 EDITORIAL

08 OPINION LIVE

22 BURNING ISSUE FDI – Right or Wrong?

24 TEXTILE UPDATE Tough Times Need Right Strategies Shri Lakshmi Cotsyn Defines Ways to Combat

Pressure

25 INDUSTRY ON THE MOVE

28 INTERNATIONAL NEWS * PVH Corp Raises FY outlook as Quarter Three

Profits Take a 12.4% Leap * Chief David Potts to retire ending a 39 Year

Career at Tesco Asia

30 APPAREL & TEXTILE NEWS * Textile & Apparel Industry Benefited by Decline

in Rupee Value

32 RETAIL NEWS * Koutons Close Down 150 Stores in India

34 TECHNOLOGY UPDATE * Zoje Looks Forward to Enhance its Share

in the Indian Market * Apsom Infotex Sees Good Response for

DIGITEXJET by Roland

38 TRENDS – A/W '11 FORECAST

42 DATA ANALYSIS US Data Analysis in October 2011 –

Holiday Season Pushes Demand, US Imports Increase by 10.59%

46 CONFERENCE & SEMINAR EPCH Felicitates Handicraft Industry at the 18th

Awards Function

44. FAIr & eveNts

36. treNDs

18. MArKet UPDAte

42. LoGIstIc UPDAte

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Save LogiSticS

coSt by USing

containerization

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1402, Aggarwal Corporate Heights,A-7, Netaji Subhash Place, Delhi - 110034Ph: 011-47085404 /05Fax: 011-27375722Mobile: +91-9899293660, 9899114884Email: [email protected]

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INNoVATE oUT oF THE CRISIS

After facing a lot of challenges in 2011, the industry is eagerly waiting for the year 2012. As per the market forecasts, the business will surely be back on track by the second quarter of next year. However, the experts say that it will be good to work with buyers who have global operations as if they

see downfall in one part of country, it can be compensated and hence there will be no dearth of orders. Also, to counter the tough times many exporters are adopting two rules; diversification and exploring new markets. In fact, diversification to new areas like retail has been a very successful strategy for many exporters. The recent changes that were going to come in FDI would have brought a major change in the current scenario of business. However, the policy could not be implemented due to our political system and short term analysis of FDI. In fact, now many textile major companies have come forward saying that banning cotton exports were not a favourable policy, however, last year, every alternate day our team was attending press conference organized by different associations on banning cotton immediately. No doubt certain policies by the Government are not favourable to the industry especially the labour laws, however, the industry needs to pull its socks too and before asking for implementation, the long term perspectives should be carefully monitored to avoid any unwanted consequences.Team Perfect Sourcing also talked to several exporters on resolutions for 2012 and most of them were optimistic and focused on areas like lean manufacturing, reducing overheads, and working on efficiencies. This issue we did a tour to Maral Overseas, a vertically integrated facility manufacturing yarns, fabrics and garments. The company has adopted modern ways of manufacturing and has laid a lot of stress on environment.To tide against fluctuation in cotton and yarn prices, the company has worked on strategies to de risk the business.Textile major companies like Shri Lakshmi Cotsyn is also following route of diversification and is optimistic about market turning back on track. Whatever be the situation, the rules of success in business always remain the same, ie. efficiency, on time delivery and determination to follow all norms.With this note, we wish our readers a VERY HAPPY AND PROSPEROUS NEW YEAR

R ef l e c t i o n s

DEEPTI MALHoTRAEditor

OM SAI RAMperfectsourcing

owner & publisher

GAGAN MARWAH

editor

DEEPTI MALHoTRA

correspondent

NAYANA SINGH

concept design & prod.DESIGNX MEDIA

photographer

SHIRAZ CHAND

circulation manager

PALAK

SAINA MEDIAhead office 1/59, Basement Floor, Old Rajinder Nagar, New Delhi - 110 060 (INDIA) Tel. : 011-45872075 Cell: 099532 14112, 098739 25220 Email : [email protected], [email protected] Web. : www.perfectsourcing.net

regd. office

33/32, Ground Floor, Old Rajinder Nagar, New Delhi – 110 060. (INDIA)Tel : 098739 25220, 098183 70778, 099532 14112E-mail: [email protected], [email protected] Website: www.perfectsourcing.net

editorial/advertisement enquiry

099532 14112, 098739 25220, 098183 70778,E-mail: [email protected], [email protected]

owner, publisher, printer - gagan marwah, printed by him at viba press pvt. ltd., c-66/3 okhla indl area ph -ii, delhi-20, india. published from 33/32, ground floor, old rajinder nagar, new delhi - 110060 (india).

perfectsourcing n DECEMBER 20116

teAM

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☻Cost cutting will be the topmost priority for the coming year as far as we are concerned. We would like to save expenses in every way possible, be it by

reducing overhead costs, or by cutting short on the electricity costs; in every way possible. Every rupee saved is a rupee earned. We would also like to improvise on the marketing division of our company. We have been functioning in the export market only till now, but we have started thinking about the domestic market also. In the year 2012, we would like to focus on the consolidation policies for our company. We have already adopted some cost cutting techniques. Previously we used to work in four factories, which have been reduced to two at the moment.

AMIT PRASAD, oWNER, Petexx India

☻In spite of the downtrend in the market, we have been going quite strong as far as polyester made in China and Japan is concerned. We have added new

customers, two from UK and one from Sweden. For 2012, we would like to keep up our performance. We are looking for some new vendors for sweatshirts, joggers, fashion T-shirts for children. We are also planning to set up a dyeing factory next year somewhere outside Tamil Nadu, either in Karnataka or in Gujarat. Once the location is fixed, we will start working on the infrastructure.

VELU SWAMI, MARKETING MANAGER, Premier Knit Apparels (India)

☻We would like to have more customers from the US and Europe in the coming year 2012. It is quite a tough time for us. People are moving to Bangladesh as

the prices are much cheaper. We do mainly knitted and woven garments. For the next financial year 2012-13, we are looking at a growth of about 15%. We would also like to modernize our machinery. We are facing labour problems and if we install automated machinery in our factories, this problem will be taken care of. Thus, we will be able to cut down on costs and also on time.

P. MOHAn KUMAR, PRIME STAR FASHIOnS

☻We are mainly into children’s wear for the niche market. We would like to focus on value addition in our product category in 2012. We fear that we might lose

out on customers from the European market. We want to get some customers from South Africa and also from Australia. Consolidation is more important than expansion at the moment. We monitor operations on a daily basis.

NIMESH SHAH, oWNER, oGGo Exports

☻We are into exports of ladies garments to the US and to the European market. Since both the markets are badly hit by recession, almost 40% of

our business has been affected. We are planning to venture into South Africa and Japan in the coming year. As far as growth expectation from 2012 is concerned, if we maintain the turnover we achieved in 2010 i.e is Rs 25 crore, we would be happy. If we can manage to make more, nothing like it! We are trying to motivate our new generation staff to take care of the quality of garments. We are panning to bring in innovation to our range of products. Working on new styles and designs in the coming year will be the priority.

Not only that, will be experimenting with new fabrics such as viscose since so far we have mainly focused on cotton and polyester. In order to attract buyers, we have to offer them something different from what others are offering. Since the times are not too friendly, we are not looking forward to immediate expansion. We rather stick to consolidation policy in 2012. The domestic market is a lot promising at the moment than the export market. It is much better for the brands and a little tough for the non brands. So we are trying to tie up with franchises and then enter the domestic market. The future is bright in the domestic market.

PRAKASH M. ADTAnI, PARTnER, Saibaba Garments

☻The resolution for the next year is definitely going to be cost cutting. By cost cutting, I am not talking about manpower cutting. We have to take

care that we don’t go wrong as far as purchases are concerned, we have to cut short the value of purchases and reduce the overheads. All these will sum up to a lot of savings. We focus on the mass market mainly. Our collection consists of children’s’ range; we have stocks for young girls and also for babies. The market is very volatile at the moment. Whoever will survive now will be able to reap profits later as there will be an upward trend in the industry very soon. We have already ventured into the new markets of South America, Latin America, Brazil, etc. Consolidation of the company will be the prime focus in 2012. We will think of expansion after two years.

AjAY MALHoTRA, DIRECToR oPERATIoNS, Sam oversees

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IVE 2011 is ending,

a year that was tough and challenging both for importers and exporters related to the textile and apparel trade. Also, the crash down of US and EU economy

posed immense pressure on the industry as the pace of orders was slow. Now that 2012 is on its way, what as a company is your resolution and what are the focus areas for this year.

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While many know that Nehru place is India’s biggest market for computers

and its spare parts, only few know that it is also a well-known hub for the apparel and textile industry of India. Buyers, exporters, designers and fabric agents move to the hub very often looking for new samples and innovations in fabrics. In fact, it is often that you name and you get it at Nehru Place. The important hub has an interesting history behind its foundation and current status. When Team Perfect Sourcing visited the hub every showroom owner had a common history to spell and that was how HP Singh, Owner of H.P Singh Agencies Pvt. Ltd sow the seeds of India’s biggest hub for textiles in Nehru Place. He was the one who started of by taking a small space on rent at Nehru Place and invited others to join him later.

“A designer called Heisa Dupare from France came to my father, who was an agent in Chandni Chowk. He took her to different shops and showed a variety of fabrics. Suddenly she saw some people sleeping and sitting on the fabrics, which was a common way of selling in retail. She told my father – 'why don’t you start keeping the fabric nicely?' My father took her words as an inspiration and took up a small shop, in Nehru place on rent and attempted to organise the thoroughly unorganised sector of fabrics,” said Bashi (MP Singh from HP Singh Agencies Pvt Ltd.

Nehru Place, the prominent South Delhi location, amidst the hustle bustle of vendors, chatter of street children and trespassers, forms one of the most prominent textile sourcing hubs of the country. With a capacity of approximately 60 – 70 textile showrooms, the place is an immensely popular hub, visited by buyers hailing from both the international market as well as the Indian domestic market. Team Perfect Sourcing gives a close account of the trading hub and interacts with owners on the hub, its uniqueness and versatility…. A report.

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Three Decades Ahead Nehru Place Still a

Favourite Hub for Fabrics

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The strategy was an instant hit. By 1982 as people gathered up in large numbers to buy fabrics. Several traders came in and set up showrooms and contributed to building Nehru Place into a full-fledged market. The hub very soon got popular as the Okhla industrial area was emerging as cluster of exporters during that period and it was inconvenient for the buyers, fabric agents and designers to visit the narrow and congested lanes of Chandni Chowk. They found it very easy to source all their requirements from one place.

“My father had a vision and wanted to make Nehru place a market so he requested some people from Chandni Chowk to come up and open up shops here so that it becomes a market,” added Singh. Later on the hub was joined by companies like Weavers India, BP Textiles, and many more. Today, Nehru Place has around 60-70 showrooms where a wide range of fabrics useful for both exporters and domestic manufacturers is available. “In 1989, when we opened, there were only four shops, now there are over 70 showrooms here and it is a natural phenomenon that people come to the place where they get a wide range to chose from,” said Rakesh Gupta, Check n Stripes.

Other factors that led to success of this hub was it easy accessibility for buyers, proximity to garment manufacturing hubs like Delhi, Faridabad, Noida, Gurgaon, good parking facility and less congested roads unlike Chandani Chowk. “We were in textile trade since a long time, my father used to operate from Chandni Chowk in Karol Bagh, however, later on, due to congestion and difficult access, gradually people opted Nehru place as it was easier to deal with customers, especially foreigners who found this place to be better organized and full of variety.” “We have also grown up in time, from small shops of 330 ft sq. foot to more than 11,000 sq. foot area,” averred Singh.

The well-developed connectivity of Nehru place with the rest of the city, the presence of traders offering the widest variety of fabrics like cotton, synthetic fabrics, linen, woollens, knitted fabrics, polyester, silk from not India, but all over the world from countries like Korea, China and Europe make it an ideal hub for industry who save a lot of time, effort and money this way. From India the fabric is

Weavers India, Specialists in Yarn Dyed and Grey Fabrics Weavers India, a renowned name in the textile export fraternity, has had their presence in Nehru Place for the past 28 years. It is a huge showroom filled with mainly the yarn dyed and greige fabrics which is in the shape of dobbies. “Dobbies are in fashion these days as compared to yarn dyed fabrics,” said H.R. Sahni, Managing Director, Weavers India. He explained that these fabrics come in several qualities like plain variety, chambray and even in yarn dyed checks, there are a lot of qualities. Some come under the 280X40s, or 220X40s, 260X40, 260X30s.

The showroom is visited by exporters from all over the world and from places like Mumbai and Bangalore in India. The company sources its range mainly from Salem, Coimbatore and Chennai. “We work with all type of exporters who serve to countries like the US, EU, Africa and Taiwan,” added Sahni. As far as the

designs and innovations are concerned, it is done on the basis of forecast in magazines and inputs given by foreign designers. He also said that the double recession prevailing in the market has affected 25%

of the business. “The growth has been good since the times when we started the showroom. Business can never escape the cycle of ups and downs. Sometimes it goes slow, sometimes it is fast, however, it is part of the game,” concluded Sahni.

H.P Singh Agencies Pvt Ltd. Offering Variety and Quality

A huge showroom covering 11,000 sq feet filled with all designer fabrics and textured fabrics gathered from all parts of the country, is what the founders of Nehru Place, H.P Singh Agencies look like at the moment. “You will see the biggest variety of fabrics in the whole of South East Asia under one roof at our showroom,” says Bashi M.P Singh. The showroom has undergone a drastic change from what it was initially in 1984, with a shop laid over 300 sq. feet area.

“We work hard on bringing innovative designs for every season and do not want to hold it among ourselves but would like to spread our designers to weavers so that any designer can make alteration and a new product,” said a confident Singh.

Varieties in cotton, silk, linen, woollens and blends and even manmade fibres like polyesters, nylons are available at the showroom. “We were the first people to introduce knits in retail,” he added. The company has a huge variety of around 7000 fabrics

to offer. The sourcing of fabrics is done from 16 states of India and majoirity of them are from Tamil Nadu, UP, West Bengal, Orissa, Andhra Pradesh, Karnataka, MP, Maharashtra, Punjab, Haryana, J&K, Assam and Bihar.

“The designing of the fabrics are looked after by the special design team, which keeps on bringing new developments, especially in woven and printing,” asserted Singh. The forecasting method constitutes of following the international trends, especially premiere vision, of France and few websites are also followed up to keep the designers updated about the coming trends. The company supply to both exports as well as to the retail market and the ratio is around 60:40 respectively.

On being asked what’s in and what’s coming in the next season, Singh says, “For winter 2012- 2013, the demand of fabrics is very fluid. The kind of fabrics in demand includes modal, fine woollens, digital prints, prints with shiny feeling, high end silk. Embroideries are very subtle and North oriented for summer 2013 – 2014. Floral with reptile effects in prints will be very high and fabric wise, it will be fluid fabrics, fabrics with two tones like chambray would be in. Handloom products like Ikat will also remain in demand.

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sourced by places like Orissa, Mumbai, Surat, Chennai, Salem, Karur and many more.

As summed up by Atul Sahni, Owner of Sahni Fabs, “There is no place like this in all over India or anywhere in the world. This is one place offering all possible fabrics. Everybody likes to come here because it is in the middle of the city and travelling is very convenient,” “Being present in Nehru Place is better than participating in exhibitions, because all the buyers are here. Industry comes here very often,” added Sahni.

Over the years, the operations at Nehru Place have also become much more professional and a lot of stress is given on quality, compliance issues as the clientele records of the traders touch base with the biggest brands. Many of the showroom owners have used IT solutions and software to keep their stacks organized and also offer the innovative range of fabrics to clients. Most of the times, a customer coming to showroom does not know, which quality of fabric he/she is buying and the seller does not know the quality he is selling. They only see the look and feel of the fabric as other details like count, construction, gsm, yarn quality. are all missing.

To tackle this some companies like BP Textiles use a software which helps in locating a particular fabric quality which searches using parameters like count, construction, pattern, finish, weave, gsm. “Our showroom has around 800 different designs on display and using this software gives the facility of calling and checking the availability of a particular quality anytime,” said Basant jain, BP Textiles.

However, the place has some drawbacks which need to be taken care of. In spite of being such a strong business hub, it is still neglected by the political arena and the facilities are not good. The foreigners visiting the place are chased by beggars and about 90% of them are harassed by beggars. “Water seepage is a major issue with the shop owners who have are compelled to close down during heavy rains,” asserted Singh.

Congestion is another issue which, if resolved will make improve the quality of the hub. Such a vital sourcing hub has a lot of potential to grow further. Nehru Place has possibilities to grow further if the government and the traders start working towards a common goal of making this hub popular in the world.

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C O V E R S T O R Y

Specialists in Linen Sachdeva Fabric World Pvt. Ltd. One of the exclusive suppliers of linen, Sachdeva Fabric World is known for offering a wide range of linen and linen blends. The linen of this kind is supplied mainly to fabric, garment, accessories and home furnishing industry. “Our range starts from 90 GSM to 870 GSM and the price range starts from as low as ` 47 to ` 1500,” said Shashank Sachdeva from the company. In fact, the interesting range of linen scarves and bags are a big attraction for visitors at Sachdeva Fabric. The company has a monthly capacity of around six lakh meters, however, it depends on number of factors like construction, quality and designs also. “Every fabric has different requirement and time frame to be made for example, a lightweight fabric needs lesser time to weave, but heavyweight needs more time to weave,”

added Shashank Sachdeva.

Talk ing about some latest t rends in l inen Shashank said, “Vintage look in fabric is in vogue these days and it is expected to remain in fashion

over the next two years also.” The company is known for offering wide range of linen qualities and customized blends also. The company mainly caters to the export market situated, however, serves little bit in retail also.

On being asked about the current market scanerio, he said, “Last year at the same time, delivery time was around 60 days and it has now reduced to 45 days, moreover, business has also gone down by 15 to 20%.”The designing of the collection is done by in house designers who take inspirations from international fairs like PV and Heimtextil. “We have a showroom in Gurgaon also,” added Shashank.

Sahni Fabs: Five Different Showrooms Stocked Up with Varieties

Established in the year 1978 the showroom of Sahni Fab is engaged in manufacturing and trading a unique collection of fabrics like viscose prints, silk, cotton, denims, polyester, jacquards, linen and many more. The company is offering an exquisite collection of high quality printed Fabrics and home Furnishings that are available in a large variety with like Cotton Prints, Linen Prints, Silk Prints, Digital Prints and Polyester Prints. “We use finest quality threads, which are carefully processed in the yarns, so that our clients can avail the international quality fabrics from us,” said Atul Sahni, Sahni Fabs. He further added, “Due to our client focused approach coupled with zero tolerance policy towards the production, we have been able to supply these in various parts of the world like Middle East, East Asia and

South East Asia.”

The five different showrooms of the company in Nehru Place spread in an area of 30,000 square metres have unique collections to offer. “Our monthly capacity is

around 10-15 lakh meters of fabrics that are manufactured in different parts of India,” informed Atul. The company is working with all the top notch exporters of the country like Shahi exports, Orient Craft, Boutique international and is being further used by brands such as Zara, Mango, Next, etc. As far as designing is concerned, the company follows forecasts and trends at fashion forward fairs like PV and international fashion weeks.

Talking about some of the upcoming trends in fabrics Atul said, “Cotton, polyester, silk are in good demand and for the next season, polyester and viscose will remain in vogue.” He also said that fabrics like cotton, cambric, propylene remain in demand throughout the year. Atul expressed his satisfaction over business potential in the retail sector and said that while exporters usually come here for sampling, retailers are the ones who buy good quantities in one go. “We have all export quality fabrics, but they are getting more pupluar among retailers as the market is getting quality conscious,” he explained.

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C O V E R S T O R Y

Yarn Dyed Checks n Stripes

As the name suggests, the company is all about Checks n Stripes and that too in cotton and yarn dyed variety. The company offers a very specific category of product i.e yarn dyed checks and stripe fabrics from the South. “We are only restricted to a very narrow range of fabrics, which is yarn dyed Checks n Stripes from south,” says Rakesh Gupta, Managing Director, Checks n Stripes. The USP of the company is that it deals in yarn dyed fabrics in different counts, ranging from very fine counts to very heavy counts. “We cover almost entire range in different yarn counts for instance voile which is the final count starts from 120s, 100s, 180s and goes upto 0s. Trichy and some areas in Salem are

known for offering very fine counts like voiles and the company also sources its product from them. For the heavier counts, the company prefers Karur which offers 0s and 2s and are almost like a sack.

As far as designing is concerned, the company used Vision, a software to design the latest fabrics. Also, the customers’ feedback who regularly visit international fairs like Premiere Vision is used to design the collection. Speaking on recession, Gupta says, “There is a solution to every problem, for instance, when recession hit the US, consumers started buying a lot of scarves to change the look instead of new garments.” He further added, “This way sometimes recession also helps, if we deal with it properly and understand the problem.” Gupta shared that he is optimistic and seeing the market for last forty years, it is quite sure that business will soon come back on track.

Parkash Textile Mills Keeping Up Pace with Fashion

Existing for the last 18 years, Parkash Textile Mills offer all types of cotton fabrics, yarn dyed and woven fabrics along with the dobbies, rayon, flat and greige fabric. “In bulk our range is in between ` 20 to ` 60 and sometimes go up to ` 100 to Rs 200 also,” said Ved Gandhi. The company is both into manufacturing and trading of fabrics mainly from Southern areas like South Erode, Tamil Nadu, Mumbai and Surat. The monthly capacity is around 2 lakh metres to 4 lakh metres every month. Catering mainly to the medium end of market. “Fashion changes are rapid and constant while sometimes polyester is in demand, sometimes viscose is in, however, cotton is an evergreen fabric,” said Ved. He also

said that around 25 to 50% of the business has been affected due to the economic crisis.

Khoobsoorat Design Fabrics Exploring Growth in Retail Segment

With a monthly capacity of around 4 to 5 lakh metres for exports and around 8 to 9 lakh metres for domestic market, Khoobsoorat Design Fabrics offer a variety of cotton, cambric prints, cotton satin prints, cotton poplin prints, polyester tafta, polyester lining, etc.The manufacturing unit is in Surat as well as in Patparganj. “We basically export our fabrics to Taiwan, Korea and Sri Lanka, while for we have 5 to 6 product categories for domestic market we have a good range consisting of cotton and polyester.

The company targets more of the retail market as compared to exports. Talking about the prevailing market trends Priyank Jain from Khoobsurat

Designs says, “In winters, polyester is in demand and in summers we will be focusing mainly on cotton, cotton satins and cotton cambrics.” The designing is done by the in-house team of the company. The company

supplies its range to industry in Mumbai, Ahmadabad, Baruch, Nagpur and Chennai. In the retail market the company is working with companies like Koutons and Globus.

Maurya’s Tapping the Potential of Domestic Market

Yarn dyed, fabrics, stocklot, dobby, twill fabrics, checks and oxford fabrics are some of the varieties produced by Maurya. The showroom of company is filled with men’s shirting material in 100% cotton for the domestic market. The company produces about eight to ten categories of fabrics and has a monthly capacity of 5-6 lakh meters a month. The fabrics come from Salem and the designing is according to a combination of ideas gathered by designers, opinions of buyers and also ideas from Pantone colour forecasts.

While earlier the company was serving the exports market only, it has now diversified about 25-30% into the domestic market. “The quality that the domestic market is demanding is better than export as people in the domestic are more quality conscious than the exporters,” said Manish Maurya, Owner, Maurya.

He further added, “The demand for blended fabrics with viscose and cotton viscose will be high in the coming season.” Voiles, cambrics, lino and dobbies are very basic and ongoing fabrics”, added Manish.

The company has a varied customer base. On the retail front, the company supplies to Woodlands, small retail outlets in Gandhi Nagar, traders in Ludhiana, Tirupur, Chennai and many more places. “The export fabrics land up in the stores of Gap, Zara, Peacock and H&M,” says Mauriya. Talking about the current business he said, the business has been affected by 30 – 40% due to the economic crisis, however, concentration on the domestic market and exploring its potential has been a surviving mantra.

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C O V E R S T O R Y

Rajeev Ranjan Kumar, Manager Fabric Sourcing – GASL (TCNS) Group

Nehru Place is good destination for domestic sourcing as well as for sampling. Moreover, small quantities of products such as 5000 – 10,000 meters are available. However, the place is not good for placing bulk orders. So if we are thinking of supplying to the US or to the European market, Nehru Place is not very lucrative. There are a few people, who deal in specialized fabrics, and some who do regular ones. B.P Textile is one of the best for yarn dyed fabrics. H.P Singh, Pankaj Textile, Gaurav Textile also have good collection. Charu is good for printed fabrics.

Avanish C. Jain – Akriti Apparels Pvt Ltd

We go to Nehru Place for the sampling of our fabrics. We mainly go to H.P Singh, Checks n stripes, Weavers India, BP Textiles. We have been associated with them for the past 15 – 20 years. H.P Singh and Weavers India are mainly places to procure samples from. Most of the medium and the upper level players go there for the purpose of sampling. The place is also accessible from Gurgaon and Faridabad so people can easily come in. The showroom owners visit international fairs and events to remain updated about trends in fabrics. However, prices and quality is an issue of concern sometimes.

Navin Kumar, Fabric Sourcing Executive – Richa & Co.

Nehru Place is good enough to be qualified as a hub. Lots of Indian fabrics as well as fabrics from China and Korea are available there. So it saves a lot of time. It is good for domestic market, but not as good for the export market. The quality of products is not very reliable.

n These days synthetic fabric is more in demand. Synthetic will continue to be in demand in the coming season. – H.r. Sahni, MD, Weavers India

n The demand of fabrics keeps changing. But right now yarn dyed is quite strong and prints are also doing well. – rakesh Gupta, Checks n Stripes

n For the moment, people have started asking for blended fabrics with viscose. Cotton viscose will be high in demand next season. – Manish Maurya, Maurya Jaylakshmi International

n In winters, polyester is in demand. In summers we will be focusing mainly on cotton, cotton satins cotton cambrics. We will be focusing on these products. – Priyank Jain, Khoobsoorat Design Fabrics

n Cottons, polyesters, silk, all these fabrics are in demand. Next season, polyester is going to be good, viscose is very much in, cotton is obviously good. – Atul Shani, Shani Fabs

n Fashion changes every time. Sometimes it is in cotton, sometimes it’s in polyester. It keeps changing. Cotton fabrics are evergreen. – Ved Gandhi, Parkash textile Mills

n People are looking for vintage kind of things. For the next two years, vintage/old look is going to be in demand. – Shashank Sachdeva, Sachdeva Fabric World Pvt. Ltd.

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Sanjeev Bansal, Sr. Merchandiser – Fabric, NSK Textiles Ltd.

“Nehru Place is a very good hub for sourcing. There is a lot of variety available. The place is especially good for designers. We go to Nehru Place for sampling. The turnaround time is quite fast. We can procure the quality and send to the buyers also within just a day. The turnaround time for counter sourcing is less. As far as disadvantage is concerned the mill made qualities are hard to find. Most of the people do not have appropriate knowledge about the Count, Construction, and about other details. So, in

that case we have to do the analysis. 30-40% of our requirement gets fulfilled from Nehru Place. The rest 50-60% we have to source from somewhere else.

l

SanJEEV BanSaL

FEEDBACk AND SUGGESTIONS OF

IMProVeMent For neHru PLACe

by ItS CLIentS

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As Team Perfect Sourcing landed at Indore Airport, the first sight that it saw was a lush green park, beautiful and truly natural. While we were forming an opinion about Indore’s Government and its initiatives, the eyes immediately stopped at the board saying ‘Park Maintained and Developed by Maral Overseas’. It is often said that the first impression is the last impression; however, the eyes were eagerly waiting to see more. As we drove towards Maral Overseas, a vertically integrated unit that is located 90 miles away from Indore city, we were wondering how a group like this has managed everything on being so far from the city. The landmark of Maral Overseas Limited was prominent and exciting too as it was next to one of India’s fifth largest river in the Indian subcontinent, Narmada river, which is known for its purity, a short distance away from which stood the board of Maral Overseas Limited, a LNJ Bhilwara Group company.…

Quite similar to the first encounter, Maral Overseas unit was full of huge trees, gardens and nurseries. More than 1000 trees planted in

a row, green parks, pigeon house were seen on the campus. While some parks were clean and silent, some had swings and children playing football, tennis and enjoying. To ensure that people associated and working with Maral get every facility and a normal life, the group has worked on intricacies to the core. A dispensary with six beds and all medicines and doctors 24x7, a departmental store for making things of daily use available at affordable prices, an ATM for financial availability anytime during the day, a temple to worship and dairy with 22 cows for healthy milk for the employees and their families, were just few of the facilities provided. It would not be wrong to say that the unit was more of a small town where people from different cultures and background shared a common workplace.

The next day was as interesting as the first day when we met the President, Mr. Tarun Baldua, who heads the operations of company’s Indore plant, along with heads of spinning, knitting, quality, dyeing and product development departments. The conversation started off on an obvious question, why Indore and that too away from the city for the unit, on which Tarun said, “As you must have seen that the plant is close to Narmada river, it helps us in getting regular water supply, moreover, the river is so pure and has very less impurities, which helps us in giving an excellent feel to our final fabric.”

He also mentioned that another reason for selecting this location by the management was for creating employment opportunities as this was a backward area. “We have created direct employment opportunities for 2000 workers and almost 5000 families are indirectly working with the company,” he informed. Besides, the region is a cotton growing area and the cotton produced was most suited for company’s products and was attractive because it reduced logistics cost and helped in training the local farmers and ginners to improve the quality of cotton through a process, which was coined by the cotton industry as the ‘Maral Process’. Another important reason was unit’s location on Agra-Bombay Highway that helped in quick and relatively cheap transportation of goods to the port.

Maral is a LNJ Bhilwara group company registered in the year 1987 that set up its first unit in Indore at Maral Sarovar. With an annual turnover of around $ 90 million ( ` 450 crores), the company has two ultra modern units that produces 1500 tons of grey yarn, 120 tons of dyed yarn, 425 tons of dyed knitted fabric and 400,000 pieces of garments every month. The garment unit is located in Noida and is exporting all type of ladies, men’s and kids garments to all over the world. A public limited company listed on the stock exchanges in India, Maral Overseas is banking on its core strengths, modern manufacturing technology, quality systems and customer relations.

Stress is laid on maintaining high quality standards. “We are working on a project with a consulting company in which each and every detail about quality standards, quality defects,

18 perfectsourcing n DECEMBER 2011

M A R K E T U P D A T E

An Interesting Journey to Maral Sarovar by Team Perfect Sourcing

(L-R) Onkar Tiwari, DGM ( knitting & Product Development), S.k. Bhatt, VP (Spinning), CA Tarun Baldua, President, Vijay k. Mathur, VP (Processing), Ashok Akade, GM, Q.A. from Maral Overseas Limited

Page 19: Perfect Sourcing December 11

quality benchmarks, monthly analysis of output of a particular department is displayed on the notice boards,” said Ashok Akade, GM, QA. The boards help workers in understanding the required quality standards and its comparison with their output on one hand, helps in self assessment and improvement on the other, this increases efficiency of every individual and department. “Kaizen activity has been recently started and it is now part of Key performance areas or KPA’s ,” added Ashok. He also informed that the company is following five year concepts, to improve job relations between senior and junior staff members.

The quality inspection lab of Maral Overseas is one of those few that is accredited and certified by SGS, M&S and Adidas. The QC room is equipped with latest technologies and instruments to detect any flaws in the quality of yarn or fabrics at every stage of production. “Extra care is taken while matching colours, lot by lot on the Data Colour Computerized Colour Matching System, which is capable of matching colours in different media light,” averred Ashok. He also explained how the lab dips are prepared on the Ahiba Nuance Spectra dye plus sample dyeing machines, which imitates the exact process parameters avoiding any chance of mismatch of shades in bulk production. The labs are equipped with all kind of latest testing machines from James H. Heal, UK such as TITAN, WASCATOR, GYROWASH for testing the quality parameters of finished fabrics to meet the requirements of high quality standards.

Spinning DivisionThe spinning division with a

capacity of 75,300 spindles produces 100% cotton combed yarn in different count ranges, blends and for different applications. “Our focus is on sourcing the best quality of raw material from India/abroad. A dedicated team for cotton procurement frequently travels across India and abroad to assess the quality before purchase,” said Tarun. The company follows a system of “on the spot passing” before procuring any cotton. The focus is on having a fine quality long staple fiber (29mm+) with lowest possible contamination levels. “We have also established strategic relations with some of the farmer groups/ginners to provide us “contamination free cotton,” he added.

“These days we are paying a lot of attention towards specialized yarns like bamboo, soya, viscose, modal, slub, banana, core spun lycra (Spandex) yarn, compact yarn,

contamination free yarn, reverse twist yarns and many more. On being asked how the distribution of yarns is planned, Tarun explained, “While 30% of the yarn produced by us is used for captive consumption, 70% is made for the market, both export and domestic.”

The company is producing special yarns for the towel industry also with PVA fiber. “The specialty of this yarn is that it melts at temperatures above 90 degrees and this gives an excellent feel to the fabric and greater absorbency also,” added Tarun.

The spinning units are equipped with latest and automatic machines from companies like Rieter, LMW, Pinter, Schlafhorst, Murata, Suessen etc. Cleanliness was seen at every nook and corner of the units.

Yarn DyeingAfter visiting the spinning unit

we entered Maral’s yarn dyeing unit that has a capacity of Dyeing 4 tonnes of yarns every day, out of which 2 tonnes is used for captive consumption and around 50% is sold to socks manufacturing companies in India and abroad. Soft Winding and yarn winding from SSM, dyeing vessels from Thies, hydro extractor, radio frequency dryer from Stalam are installed to meet quality standards required by the customer. “All dyeing vessels are electronically controlled and monitored at every stage to avoid any faults or defects,” added Tarun.

Knitting Division“The fabric division of our company

is known to produce high quality and a very wide range of fabrics,” asserted Tarun. The company has installed around 47 circular knitting machines, from top machine manufacturers like Fukuhara, Terrot and Pillotelli.

The product range includes fabrics like Single Jerseys, Ribs, Interlocks, Piquets, Honey Combs, Fleece, Plaited and variegated structured fabrics, Feeder & Engineered stripe etc. in 100% cotton and various blends, including cotton/lycra open width fabrics. Also, knitting machines from Matsuya and Shima Sheiki are used for knitting collars and cuffs.

“We have defined certain processes and methods that help in producing extremely fine knitted fabric,” said Onkar Tiwari, Dy GM, Knitting and CPDD. The display board at the front of knitting section showcased the due date of maintenance of each machine, performance, efficiency and defects if any noticed during the last one week. Besides, to ensure high quality standards and avoid any defect while knitting fabric, electronically controlled devices are attached with the machines which indicate any deficiency in the

Thread rolls on the stands become ready after spinning of cotton in the spinning division

Worker looking after the fabric at circular knitting machine at knitting division

Dyed fabric getting out for processing by the worker

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machines. “In case, the thread breaks in between, or the fabric has a hole, the device immediately indicates it through red light, thus any defect is avoided,” explained Tiwari.

The fabric produced is used 100% for captive consumption and is supplied to well-known brands like M&S, Tesco, Columbia Sportswear, Gap Inc, Next and many others. Around 10.50 tons of grey fabric is produced every day. While 25% of the finished fabric is used for the company’s own garment unit at Noida, the rest 75% is supplied to the brands associated with the company. The fabric also caters to the export oriented units in Tirupur, Delhi and Bangalore area.

ProcessingThe processing of fabric is one of the

most critical area in any organization as the final look, feel and quality depends on the how the processing of fabric is done. “We use extremely good quality of dyes and chemicals for processing of fabric, moreover, the machines that we are using for processing are fully automatic. Team Perfect Sourcing saw the intricate process of lycra fabric processing, which went through several stages before sending it to the packing department. The look, feel and sheen were highly impressive and attractive too.

Once the fabric is done, it is sent to the QC department where the lab technicians cautiously check the fabric to match colours in different light, temperature and moisture conditions. “We have in-house facility to cross check fabric as per American and European standards,” said Ashok. Some of the testing equipments seen in the lab are colour lab, accu-dry, pilling tester, strength tester, crock meter, digital ph meter and colour matching cabinet.

While dyeing of the fabric, special care is taken that there is no water on the floor and it is clean and dry, the machines are not opened randomly to cross check how the colours have blended or appeared on fabric. “We usually do not disturb the process and let the dyeing happen constantly, this helps in giving consistent and high quality dyeing,” said Ashok. “Our success in fabric is because we have streamlined the process of dyeing and processing due to which we are able to avoid any defects and we spend more in using good quality of dyes, chemicals, softeners and other chemicals,” said Tarun. He further added, “All the dyes used for fabric are GOTS approved.”

Product Development and R&D

“Value addition and innovation is the key for survival and thus we

are strongly focusing on this area,” said Tiwari. The showroom at Maral Overseas had more than 1000 types of fabrics in different blends, constructions, GSM and combinations. Two to five new developments are made every month. “We have categorized products according to their properties like Active wear, leisurewear, Essentials, Splendour and Fusion so that it is easy for customers to understand and interpret properties of fabrics,” While active wear symbolizes sportswear, essentials have basic quality with fine counts and, Splendour has special properties.

Analysis is done on the basis of market trends, fashion shows and magazine and then accordingly developments are created. The infrastructure for making a variety of fabrics is also supported by supply of innovative synthetic blended yarns by group company, RSWM. “We take yarn from RSWM and make fabric with added properties,” informed Tiwari. Some of the interesting products in the showroom included fabric with VIBGYOR effect in which polyester viscose with cotton has been used and the dyeing has been restricted to the viscose portion which gives rainbow effect. Fabrics with 50% Lenzing modal, 50% cotton and lycra which is used for innerwear were also seen. “One of our major product is 2/60 gas and mercerized fabric, which is useful in making seamless garment and innerwear for Banana Republic,” added Tiwari.

Light fabrics that weigh only 50 gsm, 80 gsm were also seen in the showroom.

Recycled polyester, fabrics with anti microbial, UV, Alovera finish, soya, bamboo and banana fabrics were among interesting developments by Maral. “We also produce anti static fabric which avoids formation of charge on clothes especially during winters that creates slight current,” opined Tiwari. Giving some more examples of innovation Tiwari said, “Bamboo with charcoal yarn is used for sparkle effect, in which, charcoal basically polyester is burnt, powdered and then bombarded along with bamboo during spinning, it is naturally anti microbial and has moisture management properties.

Commitment towards Environment

The Company considers sustainability as an important goal for doing business and is aggressively introducing ways of protecting the environment and that is why Maral is one of the first Indian companies to have all compliance certifications. It has received certifications like ISO 9001-

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M A R K E T U P D A T E

Dedicated and Aggressive Quality Assurance team at Testing Laboratory at Maral Overseas

Farmers (on right side) at the Organic Cotton Field and Executives (on left side) from Maral Overseas

The prominent building of Vivekanand Vidya Vihar School built jointly by Maral and Century Group

Fabric Inspection Department at Maral Overseas

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2008, ISO 14001-2004, OSHAS 18001-2007, SA 8000:2008, GOTS, WRAP, OE 100, OE Blended, Organic Farming Production project, Fair-trade. In fact, every Wednesday is observed as fuel saving day during which nobody is allowed to use vehicles inside the unit. Besides, to recycle water and save it from water pollution, the 800,000 litres/day of effluent that is generated from fabrics/yarn dyeing and finishing is treated chemically and biologically by ETP. “Most of this water is used again in the process house, while the balance is used for horticulture around the plant. The sludge is disposed off at a government appointed disposal site,” asserted Tarun.

Team Perfect Sourcing also visited the organic cotton farms taken up by Maral Overseas around its unit through contract farming in 40 villages for growing organic cotton. “As part of our sustainable campaign, we have 1253 organic cotton farmers under contract for production of organic cotton. The total area covered is more than 5000 acres,” said Tarun. Organic cotton fields are maintained by farmers and are supervised by designated workers from Maral Overseas Limited.

“The supervisors train farmers on how to grow organic cotton, protect them from weeds and insects without using chemicals,” said Tarun. A

complete scientific approach is used to do organic farming.

Due to its strong commitment towards environment, Maral Overseas recently received ENERGY CONSERVATION AWARD by the Govt Of India and also the Birla-CITI award for Energy Conservation.

Strategy and Vision for Growth

Talking about the strategy to counter current tough market situation, Tarun shared his concern about fluctuation in prices and policies related to cotton which is playing a crucial role. To counter this, the company has followed a balanced approach in consumption and distribution.

‘Few companies are profitable only because of their innovation and that includes Maral,” said Tarun. There was reduced demand from major markets and this has affected business. “Last year we carried 60 days of cotton stocks at this time, presently we have 26 days of cotton stock and yarn booking for 2 months, this is a strategic move by the company as yarn prices and cotton prices is coming down,” he said. The move has helped company in safeguarding itself from market fluctuations.

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Looking at the tough market situation, the company is consolidating. In the coming year, the company plans to enhance its fabric production to 500 tonnes per month, besides modernizing its spinning operations. Addition of some knitting machines is also in the pipeline. Capacity addition to 5 tonnes per day in yarn dyeing and addition of 25,000 spindles in spinning will be undertaken in the next two years, once conditions stabilize.

Overall, the journey to Maral was an experience to see a professionally run company.

'Fuel Saving Day' hoarding in Maral Overseas Plant

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The Industry bodies also welcomed the cabinet's approval, saying that foreign firms could provide a healthy dose

of competition, provide investment, and help to smooth out bottle necks that have traditionally plagued India's vast supply chains. Walmart and Carrefour have been seeking to enter the world’s second-most populous nation to tap a market that is expected to double to $785 billion by 2015 from $396 billion this year, according to Business Monitor International. Organized stores account for about 5% of the total Indian retail market, according to the Associated Chambers of Commerce and Industry of India. While supporters of the move say it will increase competition and quality while reducing prices, which have been hit by close to double-digit inflation, opponents say the multi-nationals will squeeze out India's smaller and poorer traders and drive down prices paid to India's farmers.

The argument is that it would bring global players with deep pockets such as Walmart, Carrefour and Tesco into the picture and subsequently drive the neighbourhood mom-and-pop stores out of the market. It was interesting to see at some of the social networking sites groups of these retail companies like Walmart showed their anxiousness to know the reactions on decision and were not able to comprehend how their entry would kill the Kirana stores. The FDI became a hot topic for politicians giving them a chance to lay mud on each other.

“Don’t pity the kirana guy, he knows how to fight back says Akshay

Mishra on his blog. He said that a similar

apprehension was seen when the country went for 51 percent

FDI in single-brand retail in 2006. The local players which

amount to 14 million of different shapes and sizes

have not gone out market; they have instead, turned smarter and better.

perfectsourcing n DECEMBER 2011 22

Team Perfect Sourcing took the initiative of talking to some industry

experts on impact of FDI on apparel

export segment and its consequences in

the long run....

When the Indian government approved overseas companies to own as much as 51 percent of retail chains that sell more than one brand, the news spread like wild fire. International stores like Tesco, Wal-Mart and Metro who have been pushing for restrictions to be lifted to allow them greater access to one of the world's fastest growing retail markets welcomed the decision unaware

of the fact that it is not going to be an easy move and short lived

too. Soon the decision attracted more of criticism by the opposition leaders of political parties, wholesalers and domestic retailers rather than

appreciation.

B U R N I N G I S S U E

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B U R N I N G I S S U E

The move will not benefit the exporters, in fact, the domestic retailers will suffer. The retail

chains who are thinking of getting into the Indian market are very big players, they have the money power; hence can buy in bulk at cheap prices” – rakesh Gupta, Scorpio Apparels Pvt. Ltd.“

“The move will benefit the domestic market as there will be healthy competition in the

market and professionalism too. The Indian market will open up to world retailers. He further added, “It will not harm the small retailers that much, in fact, if we consider the broader spectrum, it will open the market to global presence.”

Many players view this as an opportunity for exporters to offer their products to coming retailers as exporters are already supplying to them, the synergies have been created plus they have technical expertise also. “India is a hub for manufacturing. It will increase sourcing from India and the market competition. Quality products will be available at fair prices.” – naseer Ahmed, MD, Scotts Garments

Despite the emergence of domestic organised retail activity kirana shops at street corners still account for 90 percent of $590 billion retail trade in the country. And there’s no possibility that they could be replaced easily. The main factors driving this strength are the convenience of access, availability of home delivery, and trusted relationships between the shopper and local grocer,” says the latest Nielsen Shopper Trend India Report.

On whether they could stand in competition with foreign traders, it could be said that they face the same threat from the organised retail sector in the country — and so far, they have managed to hold their own, remarkably well. According to the Nielsen study, shoppers also perceive that they get better price value from their local grocer. No competition can take away the advantages kirana stores enjoy. Proximity is one of them. Where do you rush for a shaving blade which you need fast to get ready for office? Where do you run to when you realize that you need a packet of milk immediately? To the kirana store round the corner, of course. There’s no standing in the queue and no need to carry the money immediately too. The air of informality is something special to our kirana stores. The manufactured suaveness of the supermarket cannot just compete with it. Customer loyalty is something the kirana store can always bank on — the small customer base and scope for personal interaction ensures that. Supermarkets will never have that unique benefit.

The two groups that will gain most are much bigger than domestic retailers: farmers and urban consumers. Farmers will see lesser products being wasted on the way to market and, thus, higher income. Urban consumers will see higher product quality and selection, boosting their purchasing power. This is especially valuable given India’s painful burst of food inflation.

There is another set of gains that is receiving less attention. Multinational retailers do not serve only local markets – they have a great deal of experience and success in sourcing goods from developing economies for their developed economy outlets. Wal-Mart in China is the classic example of this, which could not be more relevant for India.

India is in the early stages of a demographic expansion that will be matched in history only by the one China is soon to complete. In creating productive jobs for the tens of millions of new entrants to the labour market, exports are indispensable.

If permitted to, they will also drive the creation of commercially valuable infrastructure – roads, container

terminals, and so on – that will benefit all exporters, indirectly boosting employment. This is the kind of infrastructure India desperately needs, not politically motivated government projects that contribute little or nothing when the construction work is done.

APPAREL EXPoRTERS GIVE MIXED REACTIoNS oN FDI

Prabhu, Corporate Management Representative, Cotton Blossoms said, “It has both merits as well as demerits. These stores will be only in big cities and thus the small scale retailers and owners will suffer.” He further added, “The exporters will also be affected as there will be unemployment in the big export houses.”

A common view was that if the government is talking about increase in jobs in one hand, there will also be unemployment on the other as only marketing and selling jobs will go up, however, manufacturing jobs might come down.

“The manufacturers and the farmers will have lots of orders, if the sourcing will be done from India, however, on the other hand, the brokers, the CNF agents, the distributors and the wholesalers will be abolished from the scene altogether,” said C.K. Muraleedharan, General Manager, Cortex. He also shared that a lot of jobs will also be generated through this.

Dhanaasekar, Executive Director, CBC Fashions views this as a threat and says, “Exporters will be benefited as initially retailers will buy from them in the beginning, however, slowly the sourcing will shift to other countries such as Bangladesh, Pakistan, and Africa for cost competitiveness.”

One of the critical questions that arise with government increasing its focus on retail is it the right time to enter retail segment. On this Murali said, “We have already stepped into the retail market, in fact, more than 10% of the exporters have done the same to hedge the business. Supporting the same Naseer Ahmed, MD, Scotts Garments said, “Exporters having big capacities should venture into the retail market now.”

Saravanan Financial Controller, Crystal Clothing Company, “There will be ample of job opportunities for domestic market, moreover, jobs in the manufacturing sector will also increase if the sourcing is done from India.” He further added, “The move will not affect the exporters in anyway, however, this is the perfect time to get into the retail market,” “The government should encourage exporters to get into the retail market, rather than allowing retailers to come and invade the market,” added Prabhu.

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PS: As you know that the textile and apparel industry of India is going through a difficult phase because of slowdown and recession in major markets. What type of survival strategies are being followed at the moment?

Dr. Agarwal: In my opinion, it is a temporary phase when the textile and apparel industry of India is going through a difficult phase because of slowdown and recession in major markets and particularly in India in the form of inflation (high interest rate). It will take a U turn very soon as the overall predictions/ projections are in favour of textile and apparel trade as under:

The global textile and apparel trade stood at USD 510 bn in 2009-10, and USD 612 bn in 2010-11, and is further expected to grow at a CAGR of 5% to reach USD 800 bn by 2015 and USD 1 Tn by 2020. The industry is expected to achieve the growth, on the back of a revival in demands from the US, Europe and Japan.

The Indian textiles and apparels industry was valued at US$ 78 bn in 2010-11, and is expected to reach US$ 134 bn in 2015 and US$ 220 bn by 2020, at a CAGR of 11%. The domestic market and exports on the other hand are expected to register a CAGR of 11% and 12%, respectively for the same period.

PS: Can you elaborate some of the affirmative steps taken by the company to overcome tough tides in the trade?

D r . A g a r w a l : T o avoid any impact of recent slowdown we are focussing on key and established

buyers who have large network so that slowdown impact is less. Optimum capacity utilization of manufacturing f a c i l i t i e s s o

that we ensure on time delivery of all orders with perceived quality and lastly direct interaction with consumers/ end users by developing in-house brands to get pulse of the market.

tough times Need right strategiesshri Lakshmi cotsyn Defines ways to combat Pressure

TEX

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UP

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Apparel or Textiles, everybody in the industry is facing the current challenges of economy and slowdown in business, However, every company has a different way of getting through them. Over the next

few issues, Perfect Sourcing will bring you a series of article on how the textile and apparel major companies are strategizing and planning, not only to surpass the current scenario, but also, preparing for risk free business in the coming times.

In this issue, Team Perfect Sourcing interacted with Dr. MP Agarwal, CMD, Shri Lakshmi Cotsyn, a US$ 400 million and one of the fastest growing Indian conglomerates manufacturing of home furnishing products, denim fabric,

terry towels, bed linen, cotton fusible interlining, embroideried fabric, technical textile products and ballistic products. excerpts from Conversation…

PS: How much growth you foresee in the next quarter and in the year 2012 – 2013? Do you think market will come back to its track in the coming year?

Dr. Agarwal: We have achieved a turnover of ̀ 478.21 cr in July – September, 2011 and in the next quarter we hope to cross 500 cr. We have projected to achieve a turnover of ` 3,000 cr approx in 2012-13. Yes, we are confident enough that the Indian Textile Market will come back to its track in the coming year due to burgeoning apparel and retail market in India, increase in working population and enhanced consumer demand.

PS: Is the company following diversification policies? If so, are you thinking of focusing more on the retail domain, targeting new export markets, or spreading wings over different area of profits?

Dr. Agarwal: Yes, we are a technology driven multi product company and have always believed in following diversification policies. We have a wide range of products and we cater to both domestic and exports market. In fact, diversification has been a key mantra for success of SLCL group. During the year 2010-11 the company has achieved export turnover of ̀ 227 cr registering a growth of 137% as compared to previous year. We expect to achieve export turnover of more than ` 300 crores in the year 2011-12. The expansion process in spinning, wider width fabric, terry towel, technical textiles is already on completion phase. We are coming up with a total project cost of ` 992 cr for its denim, wider width and technical textiles products. There is no denying about obvious hurdles that the industry at large is facing. Finding a way out will relieve a lot of pressure. Otherwise, the future is quite promising.

PS: What according to you are the biggest hindrances that the company is facing right now or industry at large is facing?

Dr. Agarwal: The biggest hindrances that the company is facing right now or industry at large is facing that is high rate of interest; increased cotton prices; lack of infrastructure viz., power, road, fuel prices, etc.

PS: Can you locate some emerging opportunities at the moment in the industry?

Dr. Agarwal: We look for some emerging opportunities in technical textiles and hope that the future of technical textiles is very bright in our country as India’s technical textiles market is expected to reach US$ 31 bn by 2020. This segment has benefited from the various schemes offered and funds allocated by the Government. The segment is expected to grow at a CAGR of 10% till 2020, with the hometech, packtech, protech, geotech, mobiltech, buildtech and agrotech as the fastest sub segments.

Dr. MP Agarwal

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INDUstry oN the

MoveCecilia oskarsson joins as Country Manager at Kapahhl Far East

kappahl is a leading fashion chain with more than 370 stores and 4800 employees in Sweden, Norway, Finland, Poland and the Czech Republic. Their office in India is now headed by Cecialia Oskarsson, from Sweden.

A. Sakthivel the Next AEPC Chairman

A Sakthivel, President of Tirupur Exporters Association has been elected as the new Chairman of Apparel Export Promotion Council. Sakthivel who has been earlier the All India President of Federation of Indian Export Organizations (FIEO) (Ministry of Commerce, Government of India), also holds the position of Managing Director, for Poppys knitwear Private Ltd, one of the leading knit wear exporters with an annual group turnover in excess of US$60 million and employing well over 8000 people.

Country Head Position Vacant at Indiska

Indiska that has than 87 stores spread across Sweden, Finland, Denmark and Norway is without a Country Head at its office in Delhi. In India, the company has spread its sourcing network to five main destinations in Delhi, Jaipur, Tirupur, Cannanore and Mumbai, which is the Head Office. While Tirupur is for knitted garments, Cannanore, Delhi, Mumbai are for apparels, home textiles and accessories, and Jaipur with a mix of apparels, home furnishing and furniture. Earlier Jeffrey Jeyaraj was heading the operations of the company.

William E Connor Gets New Country Head

The India Liaison office of William e Connor has a new Country Head. The India office is now headed by Merry Cunnighm from Ireland. She has been with the company for the past five years as the Managing Director. Since Terry O Connor shifted to the Hong Kong office, she has taken charge of the India office. William E Connor, previously a liaison office is a world-wide merchandise-sourcing organization, managing the global sourcing requirements of over 60 companies. These clients include some of the most significant brands, specialty and department stores, catalog companies and importers in North America, Europe, Latin America, and Australia. jasjeet Bhatia Says Adieu to Fat Face

LimitedAfter spending many years in Fat Face, Jasjeet Bhatia said adieu to the company recently. Fat face is a chain of clothing retailers selling its own branded products. The company has over 190 stores in the United kingdom, with international stores in Singapore, Malaysia, the United Arab Emirates, Ireland, France, kuwait, Oman and Qatar. The chain sells clothes aimed at men, women and children interested in active lifestyles. Team Perfect Sourcing Wishes Jasjeet best of luck for the future.

I N D U S T R Y O N T H E M O V E

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PVH Corp Raises FY outlook as Quarter Three Profits Take a 12.4% Leap

The profit margins of apparel seller PVH Corp jumped in Q3 to 12% from last year. The profits are due to

great performances achieved by Tommy Hilfiger and Calvin Klein businesses. The company also forecast Q4 adjusted earnings above analysts’ current consensus estimate and raised its adjusted earnings outlook for the full year. The New York-based company, previously known as Phillips-Van Heusen Corporation changed its name to PVH Corp.

Gap Inc Opens its First Banana Republic Store in France

The First Banana Republic store of France has been opened by Gap Inc. It

is yet another bench mark achievement of the US clothing retailer. The store is a two level cornerstone, set up in Paris, on the famous Avenue des Champs Élysées.

The collection will contain both men’s as well as women’s category and the British-born creative director Simon Kneen is going to design it. The collection will also include accessories, personal care products and its premium Monogram

range. Banana Republic is the latest U.S. brand to set out to conquer French consumers, traditionally reputed to be resistant to foreign clothing brands. In the last year, Tommy Hilfiger, Michael Kors, Abercrombie & Fitch and Hollister have all opened standalone units here.

Peacock to Close Down Stores to Buck Up Debts?

UK value fashion group Peacocks in a bid to restructure its £240mn debt

plans to close down 200 stores. The UK fashion group thinks the step will ensure its long term future. The company owns 611 stores and 394 Bonmarche stores in the UK as well as 117 international outlets.

Peacocks’ lenders and shareholders are said to be discussing how to restructure the retailer’s operations and the huge debt amount. A syndicate of banks and

shareholders including Barclays, Royal Bank of Scotland and Goldman Sachs and management, led by Chief Executive Richard Kirk, which have a significant minority holding, are involved in the discussions. It is hoped a deal can be agreed before Christmas.

A Second Takeover on the Block for Lingerie Brand Lejaby

M&S is about to Bring on its New Eco Closed Loop Recycled Coat

There has been another takeover bid made for Lejaby, the French Lingerie

maker. This is the second time such an incident has occurred to the brand. The bid, comes from a UK-registered company, Pacific Junction Corporation, acting on behalf of an unidentified French firm currently being set up. It is said to propose retaining 220 of Lejaby’s 450 staff. However, given that the deadline for bids passed on 30 November, a bankruptcy judge will now consider whether this new offer is receivable.

Ma r k s & Spencer is

about to launch its recycled coat in the market. It is a type of cashmere coat weaved out of recycled fibers, which is said to be UK's first c l o s e d l o o p

clothing product. M&S will make coat from products that have either been returned to Oxfam using the M&S Oxfam Clothes Exchange or returned to the company and can not be resold in-store. The coat will be made from 48% recycled wool, 25% cashmere, 23% nylon and 4% other fibers. It will be sold in top five M&S stores and e-commerce website for £149 from December.

Chief David Potts to retire ending a 39 Year Career at Tesco Asia

David Potts, the first chief executive of the Asia unit of Tesco is about to retire. Potts,54 has served the Asia unit

for the past two years. He began his Tesco career as a 16-year-old assistant in 1973 and joined the board in November 1998 on the same day as current Chief Executive Officer Philip Clarke. After he steps down in June, he will take care of his personal ambitions, as told by the man himself.

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Brandix Switches to Tukatech CAD System

Brandix, one of the largest garment manufacturers in Asia and the largest in Sri Lanka, has installed Tukatech's apparel software system to help boost the

efficiency of its product development and production. UKA systems were initially tested by Brandix Denim division and showed dramatic results in the quality of patterns and the speed and efficiency in which they were produced. “We are now getting more than double the production of patterns that fit the first time, saving a large amount of fabric, and better utilizing our human resources. These changes

motivated us to look at TUKA systems for our company,” said Iswaran Senthil, CEO of Brandix

Denim. “Besides providing us with CAD-CAM systems, Tukatech offered valuable consulting, engineered the work flow and the pattern room, and even increased productivity in our cutting rooms.”

Brandix Casualwear, primarily a producer of women’s bottoms and very technically complicated products, had seen many of their customers shifting their business out of Sri Lanka to countries where garments could be produced at a cheaper price. In order to stay competitive, Brandix required the need to increase the efficiency of their operation by 1/3, and Tukatech helped him meet his goal.

Talbots to be Takenover by Private Equity Firm

A giant shareholder of The Talbots Inc bid to takeover the slow going ladies wear chain.

The Private equity Sycamore Partners in a regulatory filing said it has offered to buy all outstanding shares it does not own of struggling women’s apparel retailer for $3.00 per share in cash, or a total of $207 million.

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Esprit CFo to Resign

Esprit Holdings Ltd announced that its executive director and chief financial

officer (CFO) Chew Fook Aun has decided to resign on 1 June 2012. It might even happen before the mentioned date. As part of efforts to turn around its business, Esprit has begun regrouping various strategic functions at its headquarters in Ratingen, Germany and in Europe. Chew is stepping down as he is unable to meet company requirements to make the frequent trips to Europe to supervise proceedings where its operations are being restructured.

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Underperforming Spinning Mills in Karnataka Pull Down Shutters

All in all 40 spinning units in Karnataka including 37 private sector units have

been closed down after turning sick. The Karnataka State assembly was informed regarding this closure by State Minister for Textiles Varthur Prakash who informed that after 40 mills ceased operations due to financial constraints, now there are 66 mills functional in the state which

includes 11 in the cooperative sector. The Department of Textiles has been directed to disburse ` 117 mn in form of term loans and ` 13.5 mn by way of share capital assistance to the said mills, and the Department has already released ` 94.4 mn of the said sum. The state government has also directed the Education Department to buy fabrics for producing school uniforms for students from economically backward sections from the Handloom Development Corporation.

Mafatlal and Zee Fabrics InC joins Hands

Mafatlal Fabrics, an important branch of the Arvind Mafatlal Group, has teamed up with Zee Fabrics INC for stocking and distribution of its

uniform shirting across India. The act is a measure to strengthen its presence in the school uniform shirting market. As a part of the tie-up, Mafatlal Fabrics will get an opportunity to distribute its school uniform across India through Zee Fabrics INC’s 140 odd dealers. This is in addition to Mafatlal Fabrics 80 odd exclusive uniform suiting and shirting distributors.

Textile & Apparel Industry Benefited by Decline in Rupee Value

The depreciation in the value of Rupee has brought good news for the Indian

Exporters dealing in garments and textiles. The increase in competitiveness amongst the Indian Exporters as a result of the weak rupee value, might cause the US and EU buyers to shift base from China, Bangladesh and Vietnam to India.

The rupee’s decline (-17 per cent in July-November) with respect to the US dollar has been much more compared to countries like China, Vietnam and Thailand, which is a prime factor for foreign players to prefer India over other markets, said a textile ministry official.

Ludhiana Adopts Modern Ways of Dyeing

Twenty-two dyeing units at Ludhiana’s Bahadurke road have accepted to follow

the zero liquid discharge system, and the work in respect of setting up a Common Effluent Treatment Plant (CETP) for these units has already begun and is likely to conclude within a year. Ludhiana Dyeing Association, which has several leading brands as its members, has

been opposing zero liquid discharge projects, on grounds of being expensive. However, after the 22 dyers decided to adopt the project, construction of the new CETP has begun on an area of four acres of land which has been obtained on lease by Bahadurke Road Textile and Knitwear Association (BKTK). The zero liquid discharge project would be completed in three phases namely, installation of CETP, then Bio-mass Thermal Plant and ultimately the steam distribution system. Under the project, waste water from the dyeing units would be collected through underground pipelines which would then be processed to make it reusable for the dyeing units.

Mandhana Industries to Enhance Garment Production Capacity

Mumbai-based Mandhana Industries is enhancing its garment production

capacity by setting up two new garment production facilities in Maharashtra. Presently, the firm already operates four garment units in Tumkur and Peenya in Bangalore, with an overall production capacity of 3.6 mn pieces per year. However, even while operating at their fullest strength, these units are not being able to meet the demand from its clients, and the firm outsources around one-fourth of its requirements from vendors. The ` 8.4 bn company has decided to invest ` 1.5 bn for setting up two new plants in Baramati and Tarapur in Maharashtra, and has already allocated ` 700 mn for the same. The two plants are likely to commence operations in March or April next year and it would boost the firm’s production capacity by almost 2.5-3 times.

Textile Rental Service Lindstrom Expands to East India

Textile service company Lindström India, a 100% subsidiary of Lindstrom Oy,

Finland has firmed up plans to start offering its work wear services to business customers in East India. Currently, Lindström operates in five Indian cities: Chennai, Mumbai, Delhi,

Hyderabad and now in Kolkata. Lindström´s fifth unit in India,

Kolkata will be serving industries and B2B operations in and around the city as well as neighbouring industrial towns like Haldia, Duragpur and Asansol. Services are likely to start in early 2012.

As an environmentally responsible organization, Lindström has various initiatives in place for waste water management as well as for energy, washing detergent and water consumption.

Further, Mandhana is also likely to penetrate in retail space in association with Bollywood star Salman Khan’s non-profit charitable organization – Being Human Foundation – as it has obtained exclusive rights to design, market and distribute the Being Human apparel collection.

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The twelfth Bestseller Store Launches in Mumbai

The twelfth bestseller store comes up in in Mumbai at Phoenix

Market City mall, Kurla. Spread across 7,825 sq.ft. The Denmark-based fashion retailer store offers men's wear brand Jack & Jones, women's wear brands ONLY and Vero Moda, and accessories by Pieces. Bestseller plans to open around 8-10 stores in the next three to four months in cities namely Bhopal, Kanpur, Raipur, Kochi, and Bangalore. The fashion retailer sells its products in 46 markets in Europe, the Middle East, Asia and Canada through more than 2,800 chain stores, of which over 300 are situated in Denmark, and 12,000 external multi-brand stores.

Expansion Plans Worth US$ 2 mn by Esprit

Esprit, one of the world’s leading brands in watches and jewelry

is about to expand its business throughout India. In the coming two years it plans on opening 25 stores across leading metros and tier I and II cities. The brand is eying the accessory zone in the upcoming and leading malls, and also selective high street areas in Mumbai, Delhi, and Bangalore.

Tesco CFo opines that FDI will be beneficial for the Retail Sector

PE Investors Decide to Increase Liliput’s Fund

The tension between Kids wear and its investors Bain Capital and TPG

has come to an end finally as there has been an agreement amongst investors to increase the retailer chain’s funds. Grant Thornton and Avendus Capital will assist in raising funds through a fresh issue of shares, the company told its bankers. The 55 per cent stake held by promoter Sanjeev Narula, and the rest held by the two PE investors is likely to come down by roughly by 10 per cent each, as declared by spokesperson.

Koutons Close Down 150 Stores in India

Aditya Birla Plans the Expansion in Retail of ` 1500 cr

Aditya Birla Retail has decided to invest about Rs 1,500 crores

in the next five years to expand its hypermarket and supermarket stores. The company that runs hypermarkets under the ‘More Megastore’ brand is looking to open 12 stores each year, while adding around 150 outlets every year to its ‘More’ chain of supermarkets. The average store size of the ‘More Megastore’ hypermarket will be around 60,000-70,000 sq. ft. Currently, the company has 12 hypermarkets and 590 supermarkets. To deal with issues like high rentals, the company has decided to either build its own sites or is tying up with developers. It has not witnessed low demand due to rising inflation, for basic necessity items like food and grocery.

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In a bid for reorganization, Koutons Retail India has shut down more than

150 outlets. They are mostly of its casual menswear brand Charlie Outlaw.

The retailer is being saddled with INR 600 crore ($116.84) debt that carries an average interest cost of 14. The Delhi-based firm is struggling to meet within three months the conditions of the corporate debt-restructuring package approved by the Reserve Bank of India in September.

Laurie McIlwee, who is the CFO of Tesco came out with his view that

overseas investment is going to be good for the Indian retail market. McIlwee said the Indian government's decision to put its plans to ease restrictions on foreign ownership in the country's retail industry on hold would be to the detriment of consumers.

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A blend of the traditional and the modern, the upcoming Tex-

Trends India 2012, will be the biggest event on Indian textiles featuring over 1000 exhibitors displaying diverse range of products from the every corner of the country. It is a platform to bring forth the best in Indian Garments & Accessories, Fabrics, Home Furnishings & Made-Ups, Indian Handicrafts, Jute and Carpets – all under one roof.

Ministry of Textiles, Govt. of India with financial assistance under the Market Access Initiative (MAI) of Ministry Commerce & Industry, Govt. of India. AEPC, the largest export promotion council has been extended the task of lead agency to organize this exhibition along with other Textile Export Promotion Councils of India. It is a proactive effort to bring under one roof the diversity, tradition and colours that the Indian textile and handicrafts industry offer.

The event, which is to be held in an area of 2,36,806 sq.ft. in Hall Nos. 7,8,9,10,11,12 & 12A at Pragati Maidan from 19-21 Jan, New Delhi, will showcase the strengths of the Indian textile and apparel industry. Nearly 400 reputed export houses of India will be a part of this event. Lalit Thukral, Convenor, Textrends 2012 says, “We do understand that the market situation is not at a very good shape, however, we have thus been extra cautious to make the show a hit and not let it get effected by recession. He further added, “An extensive promotion campaign has been carried out to invite existing and many new buyers from new countries.”

To ensure high quality buyers presence at the show special initiatives have been taken and the buyers are screened as per the information provided by them and also by a point system prescribed by AEPC so as to maintain

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A Complete Show for Apparel, Textiles and Handicraftsorganizers Play Cautious to repel effects of recession

top quality of buyers visiting the fair for the benefits of our participants. “This time of the year the buyers are visiting India to source close to season fashion, they source for high summer where an exporter can effect shipment in 2 to 3 months and can also offer the buyer ready stock if available for immediate shipment,” averred Thukral.

The fair is being promoted in INTEXPO, Malaysia, Australia International Sourcing Fair, Australia promotion, London Garment Expo, London and India Knit Fair, Tirupur. Interestingly, M/s ACOTEX, is taking care of the promotional activities in Spain. Letters have gone out to Santiago Chamber of Commerce, Brazil Chamber of Commerce to promote the fair and to recommend potential big buyers for providing complimentary airfare or hotel stay under Reverse BSM. E mails i.e known as Blast I & II has been sent to more than 10114 buyers of all participating Export Promotion Councils. A lot of banners have been placed on various international textile related websites and magazines.

Letters have been written to 47 Indian Missions abroad, informing them about the fair and the buyer promotion scheme. The council has already started receiving replies from embassies i.e. Brazil, Argentina, Italy, UAE and France. Besides, more than 15538 e-mailers have been sent on 18th November, 2011 to buyer’s data base, which constitutes 8458 to apparel buyers and other Councils of 6422.

A website for Tex-Trends 2012 is operation with domain www.textrendsindiafair.com and has already seen registration from 1211 buyers and buying agents. “Out of these 469 buyers are the existing buyers and 311 are from the new group,” added Thukral.

The varied product range, which is to be displayed at the fair will include women’s

wear, menswear , kids’ wear, casual wear, city wear, high fashion & occasional wear, lingerie, specialty garments, sportswear, knitwear, fashion & accessories, home furnishings, fabrics & garments, textile based handicrafts, Fashion Jewellery and Accessories, Handmade Silk, Art Silk & Silk Sarees, Drill, Crapes, Satin, Twill, Sarees & Handkerchiefs, Blankets, Shawls, Stoles & Made-ups, Handloom clothing, Decorative Gift items & Home Accessories, Cane & Bamboo Handicrafts, Carpets, Durries & Rugs, Jute Specialities, Packaging Materials, floor Coverings, etc.

Some of the most prominent buyers from all over the world have confirmed their presence at the fair. Some of them are Tricot from Chile (US$ 200 mn business), Group Disco from Uruguay (US$ 65 Mn – apparel business), Ann Taylor Loft from USA (US$ 2 Bn business),

Melon Fashion group from Russia (US$ 57 Mn business). JB Korea company Limited from Korea (US$ 17 Mn business), Tatsuno from Japan (US$ 170 Mn business), Spirit group Srl. from Argentina (US$ 12 Mn business), Cape Union Mart from South Africa (US $ 200 Mn business). Also a delegation of ten members from Japan which comprises of a total worth of $ 8 Bn USD is also invited at the fair.

For some years, the small buying agents have derived benefits by being present the fair as they have associated themselves with buyers and importers looking for medium sized quantities. Thus a lot of buying agencies have been invited at the show in fact, some world famous buying agents such as Triburg, H&M, Wal-Mart, Tesco, GAP, Forever 21, etc. have already confirmed their presence.

LALIt tHuKrAL Convenor, Tex-Trends

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PS: Can you give us a brief about Zoje and its operations?DOUGLAS: Zoje is a Chinese brand of sewing machines that was

formed during the end of 21st century. Sewing machines under our brand cover several applications and product categories like suits, men's briefs, T-shirt, shirt, polo shirts, jeans , trousers, lingerie and casual bags. Under each category, we have several machines, designed for specification, giving the customer the room to create a variety of products. Although Zoje has been in the market for the past 70 years, it is only for the last 10 years that we have started serving the export market.

PS: How is Zoje different from other brands and what would be its uSP?

DOUGLAS: We follow the principle of avoiding even 1% negligence that can lead to customers 100% inconvenience and this has been our commitment to customers. Our products have been passed by the ISO 9001 certification by the Rhineland Germany and CE certificate and ISO14000 environment system certification. We export to more than 100 countries in Latin America, Africa, Asia, Europe, etc. In order to march the international high-end sewing market, we have employed experts from Germany and Japan to quicken technological progress and improve the technological innovative capacity of enterprise continuously. Our products are categorized into 14 major series and more than 260 varieties of high-tech, environmental and energy saving products which have passed more than 30 patents and applied for several knowledge patents.

PS: What is your market position in Asian market?DOUGLAS: Zoje has a limited share in Asia especially when it

comes to the big markets such as India/Indonesia and Bangladesh, however, our market in the West is very good. In Europe, America, and in the domestic market of China, Zoje is recognized as the number one brand. Even in Brazil and Turkey, we are doing very well. We have a very good penetration in Sri Lanka. The Asian market is very important for the garment industry and India is a huge market. Till now our business in India has been good, however, we definitely look forward to expand it manifolds by associating with more agents and dealers. We are making investments by adding sales team and increasing our distributors.

PS: How do you plan to improve your market position in India?DOUGLAS: We have come here this time with a five member

team and want to chalk out a strategic plan for increasing the market share. Our motto is not to just increase the sales figures as this is not difficult; if you lower down the price, people will buy and hence the sales figures would go up. For us, sales number is not important rather creating and establishing ourselves as a reputed and user friendly brand is more important. Thus, we want to associate with serious and committed dealers. A major challenge in the Indian market has been the bad reputation of the Chinese products that were offered by some companies and have created a negative impact. This is as true for India as it is for other countries such as Bangladesh and Indonesia.

We plan to build up a team and have stronger sales people and increase our investment in all over Asia. Right now we are struggling with finding good marketing solutions and strong business associates for the export market.

Zoje Looks Forward to enhance its share in the Indian MarketChina based ZOJE, a sewing machine brand that laid its foundation by the end of twenty-first century is making efforts to penetrate in the Indian textile and apparel industry with its new range of sewing machines and spare parts. The group believes in offering products with high quality and expertise and distinguishes itself from other sewing machine brands. Located in Damaiyu Development Zone of Yuhuan County, Zhejiang Province, ZOJE sewing machine Co. Ltd., is spread in a three hundred acres of land with an population of 2000 employee. As a modern region-spanning company that has implemented automation in castion, machine arm processing, painting, and assembly, the company has production bases in Zhejiang and Jiangsu. Douglas Zhu, the Oversees Marketing Director shared overview and the vision of Zoje in a one-o-one interaction.

PS: What other Challenges you face in the Indian market?DOUGLAS: High Import duties on Chinese sewing machine

brands is a real setback as it increases the cost of the product making it difficult for vendors to buy. Dealers can’t import these products. So there is no chance of introducing them to the market.

PS: How much share Zoje holds in all its supply areas?DOUGLAS: We enjoy number one position in China and Brazil

market. The share is gradually growing in all regions of distribution, however, in China and Turkey Zoje has share of around 15 and 18% respectively. In India, we plan to increase our existing share to around 25% in the coming years. The reasons for good growth in Indian market will be its burgeoning domestic market and exports segment also. We always want to be a different brand and want to be accepted by the garment industry not in terms of price but also in quality. When Chinese suppliers can make successful aero plane parts then why not sewing machines.

PS: What type of products Zoje will be launching in the Indian market?

DOUGLAS: Zoje is a first company producing electronic control box and no other Chinese supplier is offering this automatically control device. Besides, we are also offering electronic and eco-friendly machines with servo motors that can save 70% of the energy. However, the biggest concern is that the Indian government has put a lot on duties and taxes on these machines due to which importers are not buying.

PS: What is the vision of company and expansion plans for the Indian market?

DOUGLAS: Our target is to find and associate with good dealers who can promote our products all levels in the industry because when the industry would use our products they would be able to analyze our quality and its utilization. We want to look at India in a very serious manner and look forward to a good growth from the country. Within two years our subdealers will be more than 300. Overall, we expect growth of 70% in the coming years.

Douglas Zhu, the Oversees Marketing Director, Zoje (left) with his team member during India visit

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Apsom Infotex sees Good response for DIGIteXJet by rolandThe market for digital

printing technologies is moving out of the

opening phase and gaining momentum in India. A PIRA international report states that the Indian digital printing market is forecast to reach US$ 177.3 mn (approximately ` 860 cr.) by 2012. Customers are demanding fabrics to be printed with various colour combinations, styles, designs, traditional designs and looks, customized to their demands there has been a limitation to attend the entire mass market with traditional printing technology.

Digital Textile Printing addresses the changing market trends in the textile industry, and offers exciting opportunities in the form of small run printing, customization, prototyping and experimentation. Moreover it also makes textile printing cost-effective. Digital printing has some advantages over conventional printing it provide remarkable benefits like quick turn-around, efficient set-up and speed, economical and great flexibility, takes less time, alteration possible, etc. And in today's customer oriented market the printing technology is not limited to wearing wears; but it

bounds to its limits and reaches to the requirements of trade show graphics, picture of huge fabric posters of television and movie stars, advertising purposes, flags and banners and many more.

To handle the growing requirement of the digital textile printing, Apsom Infotex ltd. launched DIGITEXJET digital textile printing system it introduced TJR 74HS Digital Textile Printer with eight color, Eight print head system, mounted conveyer belt which targets to provide short runs and customized fabric requirement, The Roland (Japan) print engine is retrofitted with Self-Adhesive conveyer belt system and integrated with world class RIP software from Dr. Wirth: RIP Master: which is a perfect solution for efficient print productions with choice of using Reactive dye, Acid dye, Disperse dye and Pigment dye inks, thus widening the scope of printing on all kind of fabrics.

In the Dye-Sublimation category the RS-640 and FP-740 from Roland has always been the top preference for its agility, sturdiness and user friendly controls. “With three decades of experience Roland has been the market leader in inkjet technology

and with the support and service team available in all regions and metros, our satisfied customer assures our success,” said Pankaj Mirani, Head Textile Division, Apsom Infotex.

According to him diversification and value addition in the printing industry is the only way to grow in the modern textile business operations. With a team of trained engineers and more than 70 installations pan India, Apsom Infotex is poised to bring new machines with higher speed and more technically advance system to cater the growing market needs.

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l huntsman textile effects and ramatexs’ enters Into an Association

Huntsman Textile Effects which is a leading global provider of high quality dyes and chemicals to textile

and other related industries and Ramatex, the Singapore based well known and progressive textile manufacture, has come up with a strategic partnership; the purpose of which is to enable the brands deliver Zero Discharge of Hazardous Chemicals. The move has helped Huntsman achieve the status of the world’s first textile company to be dedicated to a cause like this.

Ma Wong Ching, Chairman of Ramatex expressed his views on the occasion, “Ramatex has always been committed to meeting the needs

of the brands and responsible to the consumers we supply. It is clear that the Joint Roadmap is challenging and ambitious, but represents an important first step in reducing the environmental impacts of the textile industry. I am proud to say that with our solid foundation and the strong support of our partner, Huntsman we are well placed to meet the challenge.”

Ramatex’s responsibility towards the society and towards the environment is well reflected in its actions. The company has taken care to ensure its manufacturing processes embrace environmental protection, create a more sustainable approach to our high-quality production by minimizing energy usage, adopting waste & water recycling and using organic materials & compliant chemicals and dyes only.

Paul Hulme, President of Huntsman Textile Effects, said, "As a member of the Sustainable Apparel Coalition, Huntsman Textile Effects is proud to be a part of this major initiative in driving sustainability throughout the whole textile value chain. It is a privilege to be associated with Ramatex, who shares in this likeminded vision through this exclusive partnership, to help define and to work towards providing meaningful environmental choices. This partnership will

leverage our combined capabilities to deliver not only the challenges of the roadmap but indeed create a model for real, sustainable change within the textile industry.”

Huntsman Textile Effects operates in 110 countries and has 14 primary manufacturing facilities all over the world in12 countries, namely China, Columbia, Germany, Guatemala, India, Indonesia, Mexico, Pakistan, Thailand, Turkey, Switzerland, and USA. The company is uniquely positioned to provide fast and expert technical service to customers placed at various locations. The collaborated company, Ramatex, which was established in the year 1976 in Singapore, through its sustained program of investment in technology, manpower and training, has built up a fine reputation for quality and on time delivery around the world. To date, Ramatex has extended its operational base across Asia, with 3 fabric mills and 13 apparel factories spreading over Singapore, Malaysia, Cambodia and China to reinforce its capabilities across apparel manufacturing functions. The company has been able to strengthen its apparel production capabilities, offer customers integrated textile solutions, control the entire manufacturing process starting from spinning, knitting, dyeing and printing to garment export.

Pankaj Mirani, Head Textile Division, Apsom Infotex

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Spring/Summer 2012 is on its way and it can be said this season animal prints will again remain in fashion. Pair the sass & bide snake print T-shirt with skinny trousers and an over sized denim shirt for a relaxed look can make a way in fashion. It is time to experiment more by mixing

animal prints with florals. For work wear, while the printed silk dress from renowned brand teamed with a boyfriend blazer should work for the office, accessories will be a bonus. Animal print dress, paired with crimson lips and a sleek bun can work out well for the evening wear. The Zebra print jersey gown by this look should do the trick for formal events. However, for seventies sex kitten vibe, leopard print silk satin pants will do wonders.

Wear the trend: Teacup printsFrom animal to geometric - this season there is no avoiding prints. Leopard spots and tiger stripes, took a more feminine approach with florals and miniscule teacup prints. Cute lips and anchors along with the quintessential summer flowers are best suited.With outfits, one can stick to one printed piece with solid coloured accessories to accentuate. Lips Print Silk Crepe and Chine Dress by texture with red heels and slicked back hair add a glamorous twist to this dainty trend for nightwear.

The trends are contributed by Anjali Chauhan who after achieving a fashion degree in fashion design, worked in-house for some designers for women, men, kids’ and accessories. She has worked on several projects for buyers/retail /textiles/tollywood movie and brands like Monsoon, French connection, M&S.

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Change is the key word which defines the fashion industry. Seasonal changes reflect on the mood, the theme, the fabric, pattern, design etc. Here are some of the biggest exporters talking about their upcoming collection for Autumn/Winter, the one which is going to set the trend in the approaching season. A perfect Sourcing report………

Arun kuber, Senior Designer Go Go InternationalTHEMES – We followed different kinds of themes for the collection. Basically, we are going towards the art movement. We drew inspirations from the international exhibitions and shows that were happening. We considered what they were prone to in terms of art and technique. People are no more getting inspired from things like monuments or the military or anything related to glamour. Those things are kind of over.

When you look at art, there are different kinds of techniques such as photo, montage, etc. It is like blending two different eras, taking the nearby future and connecting it with some of the older ones. It is like traveling back to the past and seeing how things will be. If you go back to the 60s or to the 70s, you will see what you have never seen before in the present era. It is more like a third person looking at you from the olden era.

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Photo montage is a part of the art movement and is a technique in the art movement. We have experimented with mix media art. Imagine blending the Norman with geto culture, the effect has been such.

INSPIRATIoN – The art exhibitions, fairs that were held in Denmark, UK, and Paris have been the inspiration for the collection.

PRINTS – We have gone for all kinds of prints, such as fluorescent and digital prints are in vogue.

Bina, Designer richa GroupTHEMES – We made use of a couple of major themes for our collection. The essential theme consisted of the basic styles on the very basic woven fabrics. Each and every brand has one essential basic category, in which they focus more on the fabric. The second theme has been more towards the ethnic side, such as embroideries. Then there was the tribal theme, which is inspired by American tribal trend. We have also included a lot of laces. The fall season is tough in India. We are very particular with particular brand. We don’t experiment much. We focus on perfect brands which are going to give us business. Otherwise 99.9% business goes to China.

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Bhumika Jain, Director & Designer Venus Garments Ltd. THEMES – The theme of 80's and the classical times, the ever relevant theme of being natural, relaxed, basic and classic.

FoR MEN'S – We have used classic colours like blues, reds, orange with a good use of greens and the earthy colors.

FoR WoMEN'S – "Being organically fashionable" we have accessorized all our styles to suit the winter of 2011. Organic cotton sweaters blended with lurex, chiffons, swarovoski’s. Velour & fleece Tracksuits with classic shimmers and play of colours.

Lycra evening pants and the softest sleep-ins. Its a collection from "Dawn to Dusk".

The use of stripes heavily which is again an evergreen structure for men's favourite shades of the 80's.

CoLoURS – Nature has featured as the most prominent theme, this time. A lot of greens are in. Also, earthy colours have been used such as yellow, beige, brown, etc.

TECHNIQUES – Cables, intarsia have been used. As far as ladies collection go, patch work in ladies and sequence, embroideries have been used.

INSPIRATIoNS – We follow magazines such as Feugo Woman and also the internet for updating the trends.

Anirwan Bansriyar, Sr. Designer Aquarelle India Pvt Ltd.

Jatann Vij, Head of Design Shahi exports THEME – The theme for the collection is based on the show and the current catalogue which happened in September. We are going for extremely folk look,

because of the D&G shows in Milan. There are also slight touches of sports inspired look, because of the upcoming Olympics theme next year.

CoLoURS – The bright colours which are very much folk inspired, like yellows, pinks, and greens were used.

FABRICS – As a company, we develop a lot of our own fabrics. We start working from the fiber stage. In this collection, we are using a lot

of viscose and a lot of viscose blends.

TECHNIQUES – A lot of cut work, fringing and tonal embellishments can be seen in our collection.

Saveena Pinto, Head of Design texport Industries Pvt. Ltd. Music is the theme of the autumn winter collection this time. It is about American Dream – the Rail Road Revival. It is more like a tale of a traveler’s life and his experience. The collection can be described as classic and nostalgic. The colours range is from dark denim to Nigeria. Dark Chedder, Pompia Red, Arabia Spice are very much in. We work mainly on knits. We have worked on Slurbs, Heavy Pique a lot of prints have been used. Stripes which are based on Jerseys, auto stripes have been used. Cold cloud washes and cold dyed pigments are very much in.

Ginish Girija, Designer opera Clothing Pvt. Ltd. INSPIRATIoN – We manufacture as per the requirements of the buyers. So we don’t draw inspiration from other places. The buyers were looking for different washes this season such as ball wash and spray wash.

THEMES – Some buyers have asked for vintage concepts. Red Indian themes have been quite popular this time.

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THEME – The prominent theme for the collection was vintage. Inspiration was grand dad. It was basically old school, vintage, grand dad combined.

WASHES – Acid washes, pigments, cold pigment acid wash, cold pigments overdyed, were prominent this time.

FABRICS – We did a lot of milange, brinjal variation.

TEXTURE – We introduced new textures such as broken twills. It is a new dobby, (placement flux).

We cater to the mid segment to the high end segment.

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totAL APPAreL eXPortS to tHe uS by InDIA AnD ItS CoMPetItorS - oCtober-2011

Qty & value in mn M2 & mn US $Country oCtober 2010 oCtober 2011 % increase/ decrease Qty Value Qty Value Qty Value

CHINA 8,831.76 23,776.07 8,342.11 25,227.64 -5.54 6.11

INDIA 834.30 2,678.36 793.31 2,918.19 -4.91 8.95

BANGLADESH 1,342.13 3,281.88 1,349.24 3,927.02 0.53 19.66

SRI LANkA 267.09 1,024.76 282.77 1,189.87 5.87 16.11

PAkISTAN 578.21 1,230.04 539.21 1,442.74 -6.74 17.29

VIETNAM 1,582.23 4,919.81 1,715.77 5,681.13 8.44 15.47

Concerns over the weak US recovery and Europe's inability to tame its spreading debt crisis

have turned an intense spotlight on how would sectors and industry in India would be impacted? The garment and textile industry exports to the US have not seen a severe impact despite the fact that the US financial power, which gives the dollar nearly untouchable status is turning back towards recession. Still, despite most retailers missing expectations, the majority are still reporting revenue increases.

Bangladesh Seeing Consistent Growth

Bangladesh is one of those countries that has aggressively captured the US market and has seen a good surge in imports from the US in the last two years. In October 2011, the country saw growth of 19.66% from the US, the quantities however saw a marginal increase of 0.53%. The total exports to the US stood at US$ 3.92 bn. The average price for every garment reached $2.91 as compared to $2.45 in the same period last year and has proved to a major factor for bringing orders to Bangladesh.

Product wise the country saw maximum growth in sweaters recording 114.0% increase in exports, the country exported 654,895 dozen sweaters as compared to 486,348 dozen in the same period last year.

Jackets & blazers was another growing category that saw increase of 69.96% in value and 41.77% in quantity as it exported 1,351,598 dozen of jackets and blazers this year. Other categories that saw positive growth were men’s shirts with (50.73%), suits and ensembles (38.21%), babies wear (31.01%) followed by trousers (26.02%), undergarments (22.50%), foundation garments (15.35%). Other categories that did well included ladies skirts that saw exports worth US $39.95mn with growth of 14.19% in October 2011. In term of volumes, suits/ensembles scored the maximum points with an increase of 57.31%.

Vietnam Still on a Growth Path

Low manufacturing cost, efficient labour and state of the art facilities has helped Vietnam in achieving

a strong position in the textile and apparel sector. The country witnessed a good growth in both value and volume with 15.47% and 8.44% respectively. The country exported garments worth US $ 5.68 bn in October 2011 and exported around 1715.77 mn m2 of garments. The UVR stood at $3.31 as compared to $3.11 in October 2010.

Vietnam saw good growth in almost all the product categories. Categories that witnessed highest growth from Vietnam to the US in October 2011, includes, foundation garments with growth of 145.95% in value and 123.45% in volume respectively. The country exported a total of 301,306 dozen foundation garments worth US$ 16.40mn. Sweaters posted a strong growth in both value and volume of 141.08% and 64.48% respectively. Other categories that saw growth were undergarments

hoLIDAy seAsoN PUshes DeMAND, Us IMPorts INcreAse byUS the traditional export market for many countries was seeing a slow pace of business over last few months in vague of recession. In fact, it was observed that seeing the downturn and recession happening in the US many well known brands like Ikea were making exit from this market. However, as far as holiday sales were concerned this year, forecasters had predicted a slightly better consumer confidence and increased sales this year. In the month of October 2011, US imports saw increase of about 10.59% with total exports reaching US $ 66.57 bn. The country imported 20,508.94 mn m2 goods from the world during the period and the average UVR stood at $ 3.25 as compared to $ 2.89 last year. During the period the cotton imports saw an increase of 5.36%, wool 10.50%. Man made fiber and silk and veg products also witnessed growth of 20.09% and 14.59% respectively.

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APPAREL TYPE CHInA Qty Value

Babies Wear -6.13 14.23Foundation Garments 3.36 12.33Jackets & Blazers 3.79 23.24Ladies blouses -24.22 -11.18Ladies Dresses -1.78 11.84Ladies Skirts -16.50 -8.32Legwear 11.54 16.06Mens Shirts -9.00 5.61Nightwear -5.94 -0.09Suits / Ensembles -16.16 -3.04Sweaters 32.09 32.76Trousers -6.03 4.27T-Shirts -4.54 5.80Undergarments -7.41 4.72

IteM-WISe PerCentAGe InCreASe In APPAreL IMPortS by uS: oct. - 2011

APPAREL TYPE InDIA Qty Value

Babies Wear -12.02 11.15Foundation Garments 17.93 33.50Jackets & Blazers -18.22 3.20Ladies blouses -5.84 4.91Ladies Dresses 3.29 14.36Ladies Skirts 5.07 18.51Legwear -12.30 -10.04Mens Shirts 20.63 32.45Nightwear -3.95 3.36Suits / Ensembles 25.07 68.47Sweaters 63.05 157.63Trousers 1.82 0.70T-Shirts 0.26 15.90Undergarments 1.55 19.67

IteM-WISe PerCentAGe InCreASe In APPAreL IMPortS by uS: oct. - 2011

APPAREL TYPE bAnGLADeSH Qty Value

Babies Wear 16.45 31.01Foundation Garments 11.47 15.35Jackets & Blazers 41.77 69.96Ladies blouses -0.23 20.08Ladies Dresses 0.79 7.50Ladies Skirts 4.50 14.99Legwear 0.00 0.00Mens Shirts 23.98 50.73Nightwear -31.71 -15.15Suits / Ensembles 57.31 38.21Sweaters 34.66 114.00Trousers 17.30 26.02T-Shirts -3.68 16.79Undergarments 1.52 22.50

IteM-WISe PerCentAGe InCreASe In APPAreL IMPortS by uS: oct. - 2011

IteM-WISe PerCentAGe InCreASe In APPAreL IMPortS by uS: oct. - 2011

APPAREL TYPE SrI LAnKA Qty Value

Babies Wear -27.97 1.44Foundation Garments -0.41 -11.79Jackets & Blazers 2.75 32.66Ladies blouses 18.91 25.48Ladies Dresses 17.37 27.21Ladies Skirts -25.91 -22.74Legwear 0.00 0.00Mens Shirts -2.88 15.23Nightwear -28.35 -18.14Suits / Ensembles 149.20 3.54Sweaters 0.00 0.00Trousers -0.53 13.52T-Shirts -3.46 5.13Undergarments 8.65 16.03

IteM-WISe PerCentAGe InCreASe In APPAreL IMPortS by uS: oct. - 2011

APPAREL TYPE VIetnAM Qty Value

Babies Wear 4.95 19.34Foundation Garments 123.45 145.95Jackets & Blazers -2.39 21.01Ladies blouses 9.18 23.42Ladies Dresses 25.20 26.25Ladies Skirts -0.82 10.78Legwear 24.30 76.20Mens Shirts 2.93 15.53Nightwear 14.48 28.76Suits / Ensembles 25.34 47.06Sweaters 64.48 141.08Trousers 3.15 9.09T-Shirts 4.61 7.82Undergarments 59.06 77.94

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VIetnAM AnD CAMboDIA, tHe reAL WInnerS In tHe uS MArKet

• During the period Vietnam saw growth of 15.47% in value ad 8.44% in volume. Moreover, it exported garments worth US$ 2.18 bn.

• On the other hand, Cambodia is also aggressively increasing its share to the US market. In Oct 2011, the country saw the highest growth of 20% amongst all other competitors. The quantities from the country also saw a good growth rate of 12.13%. The average UVR stood at US$ 2.50. Maximum growth was seen in suits & ensembles with growth of 51.22% and 103.69% both volume and value respectively. Foundation garments saw growth of 91.94% in value and 368.82% in volumes respectively. Other categories that posted growth are babies wear( 48.29%); ladies dresses (52.19%); sweaters (78.98%) and men’s shirts (37.23%)

India Performing Average in the US market

India, known for intricate, value added and niche work saw an increase of 8.95% in exports during October 2011 as compared to the same period last year. The country crossed a total of US$ 2.91 bn as compared to US$ 2.67 bn in October 2010. The volumes saw a decrease of -4.91% reaching 793.31 mn m2 as compared to 834.30 mn m2 in October 2010. India recorded the second highest UVR (Unit Value Realization) among all other leading nations and stood at $ 3.68 per m2 as compared $3.21 in October 2010.

Product categories that witnessed highest growth from India to the US in Apr 2011 includes sweaters (157.63%), Suits/ensembles (68.47%), foundation garments (33.50%), men’s shirts (32.45%), undergarments (19.67%), ladies skirts (18.51%), T-shirts (15.90%), ladies dresses (14.36%) and babies wear (11.15%). Other categories that posted good growth included ladies blouses (4.91%) and jackets & Blazers (3.20%).

(77.94%), legwear ( 76.20%); Suits/ensembles (47.06%), nightwear (28.76%), ladies dresses (26.25%), ladies blouses (23.42%), babies wear (19.34%), men’s shirts (15.53%), ladies skirts (10.78%), trousers (9.09%) and T-shirts (7.82%).

Trousers and T-shirts remained a very lucrative product for Vietnam as the country exported 44,972,926 dozen of T-shirts worth US$ 1265.10 mn whereas trousers worth US$ 978.50 mn were exported from the country in 2011.

China Seeing Decline in Volumes

With the increasing attention towards telecommunication, increase in labour wages and decreasing government support China’s growth in apparels exports to the US has been affected. The country exported a total of US$ 25.22 bn and saw a growth of 6.11% in values, the volumes from the country to the US in October 2011 saw a decline of -5.54% and stood at 8,342.11 mn m2. The UVR reached $3.02 as compared to $2.69 in the same period last year.

Country registered highest growth of 32.76% in sweaters as the country exported a total of 4,672,556 dozen of sweaters worth US$ 366.84 mn, which indicates China’s price competitiveness in the category. Other categories that saw positive growth in both value and volumes were Jackets & Blazers with (23.24%); followed by legwear (16.06%), babieswear (14.23%), foundation garments (12.33%), ladies dresses (11.84%), T-shirts ( 5.80%). Other categories witnessed slight growth in value, however, quantities were on decline, it included; men’s shirts (5.61%), undergarments (4.72%) and trousers (4.27%).

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containerizationTeam Perfect Sourcing Report on the Complete Procedure

Presently different nature of containers available for transportation of apparel

cargo, ranging from standard ISO certified to reefer containers for transporting leather garments. The benefit of transporting cargo through containers is that it provides seamless transportation of the cargo. Seamless transportation neutralizes the time taken for stuffing and destuffing the cargo from one mode of transportation to the other. Moreover, seamless multimodal transportation ensures through containers from one location to another through container vessels, trucks, container rails and barges. This is as because the mode of transportation are standardized as per the ISO specifications of the containers to transport containers supported through customized loading, unloading and container handling systems. All ensuring ‘just in time ’ (JIT) shipment of cargo for the exporter to importer, thereby reducing inventory costs on both the sides.

The benefit of seamless transportation ensuring ‘jit’ delivery can also be supplemented by other benefits

that containerized transportation provides. This includes, apparel cargo, in lots which are too small for the traditional bulk transport can be moved using containers (apparel exporters can use either a full container load or light container load to transport his consignment based on requirement, thus cutting down on transportation costs).

Containerization is also best option for high-value and delicate cargo as it provides safety from human and natural factors, this is much essential for apparel exporters. As containers are moved intact, substantial amount of time and labour cost is saved, which would otherwise have incurred in loading and unloading goods. It prevents poor handling of goods that results from bulk transport systems.

Above all, containers can act as mode of storage anywhere along the transport route. Improved cargo security is also seen as an added benefit of containerization which is a prime issue of concern for apparel exporters. Since the cargo is not visible it is less likely to be stolen and also doors of the containers are sealed so that its safety can be assured.

Global export trade is increasingly being characterized by containerization of cargo. Assorted commodities which were hitherto shipped in bulk and break bulk form are being containerized. But the commodity that has been containerized extensively for it’s efficient and qualitative transportation is apparel. As Indian apparel exports becomes increasingly global, India’s apparel exporters have no choice, but to reconcile to the fact that apparel exports are shipped in containers at present and increasingly would continue to do so for the time to come.

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Based on the nature of shipment several type of containers are available. This includes, open top bulk containers, open side containers, general purpose dry vans, platform containers, high cube pallet wide containers ,containers with temperature controlling facility, ventilated containers ,tank containers and flush folding flat-rack containers. However, the standard containers are twenty and forty feet containers (TEUs & FEU’s)

BENEFITS oF AGGREGATIoN PoINTS

Seamless transportation of containers through multimodal transportation is ensured owing the standards of containers. However, the full benefits of containerization can be derived by apparel exporters only when the containers are, permitted to be moved to points in close proximity that acts as a storage point of the important industrial station so that the importers can get clearance of the imported goods at the nearest point to their factory/premise. The storage facility is helpful to the exporters as

or any class of such goods. After issue of such notification, the Commissioner of Customs having jurisdiction over that place issued a notification under Section 8 of the Customs Act, 1962 approving proper places in the ICD for the loading and unloading of the goods and also specify the limits of Customs area and post Customs Officers and staff to attend to work.

For the purpose of examination, assessment of the containerized cargo, both import and export container freight Station (CFS) are set up. They are appointed as custodians of the imported goods by the Commissioner of Customs, under Section 45 of the Customs Act, 1962. The imported goods shall remain in the custody of such person as approved by the Commissioner of Customs until they are cleared for home consumption or are warehoused or are transshipped. The procedure to clear the imported goods for home consumption or warehousing or export goods is the same as discussed.

There are certain procedures that need to be followed when the importers intend to import the goods through a particular ICD. As per this, they should suitably advise the foreign suppliers supported by the shipping lines so that the containers are manifested to a particular ICD. When such containers are landed in a gate way port, (Seaport) they are arranged to be transported to the ICD concerned by the freight forwarding or the steamer agent through the Container Corporation of India or any other authorized agency, either by rail or road. Once the containers are received in the ICD, they are transported to the Container Freight Station where the importers have to file the Bill of Entry and other documents as they do in the case of clearance through gateway ports or airports.

For exports of goods through ICD’s the exporters may take the goods to the ICD/CFS and file the Shipping Bill and other documents. The goods are examined by the Customs Officers and they are stuffed into the containers and thereafter the containers are sealed. Such containers are transported to the Seaports (gate way ports) by the Container Corporation of India or any other authorized agency, either by rail or road, when the containers are loaded into the vessels (ships) for delivery of the same at the specified foreign port.

In the case of export through ICD, the exporters are requested to file two additional copies of Shipping Bills known as "Transference Copies" along with other documents. The rest of the procedure is the same as in the case of exports through customs port/airport.

PRoCEDURES FoR STUFFING CoNTAINERS

Whenever the exporters intend to stuff their export cargo into the container at their factory premises, the exporters should requisition empty containers from steamer agents who normally supply the containers and also seek the permission of the customs authorities to remove the empty containers from the port to their factory premises. This permission is necessary as the containers are generally of foreign origin and when they are allowed to be taken out from the customs area necessary precautions shall be taken by taking a bond /guarantee from the steamer agents concerned to ensure that the empty containers permitted to be taken out are brought back to the port/ICD. The exporters after obtaining the permission from the customs authorities may take empty containers to their factory.

The exporters should requisition the services of central excise officers’ in charge of the factory to examine the export goods and supervise loading into the container. The central excise officers examine the goods with reference to the export invoice etc., and permit the exporters to load their goods. After the loading is completed, the containers are sealed with the central excise seal and the export invoice and other connected documents are signed by the Central Excise Officers. A sample of the seal used to seal the container is forwarded to customs officers of the PORT/ICD along with the other signed documents.

On receipt of the container and on presenting the shipping bill and other connected documents the customs officers may verify the seal and allow export if the Central Excise seal is found intact without further examination of the goods. However, if the seal on the container is found broken or tampered with or on a reasonable suspicion regarding the correctness of the value or quantity or quality of the goods in the container, the customs officers may re-examine the goods before allowing export.

Following the procedures appropriately for transporting the containers through ICD’s and CFS would provide additional benefits of containers to the shippers. However, it would be advised to shippers to select the right ICD and CFS ideally based on the close proximity of the production point supported by connectivity links. All to gain dual benefits of containerization.

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they can export the goods from the nearest point of their factory/premise. However, in order to provide this facility some statutory conditions are to be fulfilled and necessary infrastructure provided.

The nearest point of storing the containers are container aggregation points commonly known as inland container depots (ICD’s) and container freight stations (CFS).While ICD’s have customs clearance facilities apart from acting as storage points, CFS are essentially container parking stations.

Government of India issued a notification under Section 7 of the Customs Act 1962 appointing a suitable place as inland container Depot for the unloading of the import goods and the loading of export goods

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Indian shipping Ministry Providing Funds to raise Port capacity

G.K. Vasan, Shipping Minister told the Rajya Sabha that that the Government of India has identified 23 projects for award during 2011-12 to increase the capacity of major ports by 236.63 MTPA (Million Tons Per Annum). The estimated investment of Rs.16743.92 crores

under Public Private Partnership (PPP) mode. The existing port capacity of Major Ports as on 31.3.2011 is 670.13 million tonnes (MT).

According to the minister, the Government has given foremost priority to the modernization of ports through various expansion/up gradation projects for berths, construction of new berths/terminals, installation of new and modern equipment, upgradation/replacement through higher capacity of cargo handling equipments, mechanization of cargo handling operations, deepening of channels/berths etc. along with schemes for quicker evacuation of cargo through road and rail connectivity.

the Government on a bid modernize railway servicesA committee called the Expert Committee for Modernization of Indian Railways has been formed, Chaired by Sam Pitroda; the purpose of which is to modernize the railway services. The agenda of the committee is to meet the challenges of economic growth, the aspirations of the common man, the needs of changing technology and the expanding market, while at the same time ensuring adequate focus on addressing social and strategic

requirements of the country in consonance with Indian Railways’ national aspirations.

The terms of the reference of the Committee also includes recommendations on strategies for modernization of Railways with a focus on track, signaling, rolling stock, stations and terminals, for improving efficiency and safety, augmenting existing capacities of Railways through indigenous development and review of projects and PPP issues.

cevA’s growth graph on the rise with increase on more than 30 LcL services

CEVA Logistics’ Less-than-Container Load (LCL) consolidation services continue to grow. The company announced the introduction of 30 new LCL Services.

The development of the CEVA, regarded as one of the leading global non-asset based supply chain management company,

can be attributed to its relentless focus on developing and improving services to provide the best offering in the Oceanfreight market.

two Direct LcL services started by Panalpina connecting Asia and Poland

Panalpina, which is one of the leaders in supply chain solutions, informed that it is working on new Less than Container Load (LCL) services.

It will be operated through the in-house carrier Pantainer Express Line.

The new guaranteed weekly services are from Keelung (Taiwan) and Busan (South Korea) to Wroclaw (Poland). The new services cut down on transit times by two days and CO2 emissions by as much as 6.9%.

LOGISTICS NEWS

New center for temperature-controlled Freight started by Lufthansa cargo in Frankfurt

Multi-Modal service started by DhL links china And JapanA multi-modal service by DHL connecting China and Japan is the latest facility developed by the company. The facility reduces costs up to 60% compared to air freight

New functions of Lufthansa Cargo began from December 6 which is for temperature-sensitive freight in Frankfurt. The Lufthansa Cargo Cool Center was built over six months. It is equipped with four cool storage rooms for four different temperature ranges as well as a deep-freezer cell on an area of 4,500 square metres. From now on, all temperature-controlled shipments carried by the airline in Frankfurt will pass through the new facility.

alone. It also cuts down on the transit time upto 3 days compared to solely using an ocean freight service. It also promises to emit up to 92% less Carbon dioxide as compared to air freight. DHL was recently licensed by the Ministry of Land, Infrastructure, Transport and Tourism to use railway for cargo transportation in Japan.

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personalities present at the award ceremony consisted of Ms. Rita Menon,

Secretary, Textiles and Shri. S.S. Gupta, Development Commissioner (Handicrafts). Some prominent people hailing from the handicrafts business fraternity and some diplomats also were present at the event. Five types of awards were distributed categorized under 22 sections. There were also merit certificates, regional export awards, Lifetime achievement award and Women Entrepreneur Award distributed which were distributed.

While presenting the awards, Ms. Panabaaka Lakshmi said that the system of export awards is a conduit not only for increasing exports but

Ms. Rita Menon said that the Council is playing a very active role in increasing exports from the country by holding handicrafts festivals and Buyers and Sellers Meets in many countries. While addressing the audience, Shri. Gupta said that handicrafts is a huge market and India has abundance of raw material, skills and technology, still the exports is less than two per cent in the world market. New products, designs and technology should be used to increase India’s market share in the global market. He stressed the need for creating a brand image and explore new markets for increasing the share. EPCH is one of the best councils and organizes handicrafts fairs in February and October where more than 4,000 foreign buyers visit

very importantly alleviating poverty and uplifting economically backward classes, generating employment and earning foreign exchange and encouraging tourism. She also said that the The Ministry of Textiles is behind the Handicrafts Sector to provide full support in terms of policy, initiatives and incentives.

She also praised the efforts of Development Commissioner (Handicrafts) and EPCH for developing awareness amongst the exporting community on various system and procedures prevalent in the world market particularly relating to compliances pertaining to statutory, social and environmental requirements of the international buying companies. “EPCH and National Centre for Design and Product Development (NCDPD) with their joint efforts will display for the first time a Tableau on Handicrafts during 63rd Republic Day Parade at Rajpath; providing suggestions to tap the unexplored market,” said the proud Minister. Recently EPCH organized live demonstration of crafts persons in Malaysia during Intexpo. Also a successful 4th Festival of India was organized in Argentina in Latin American Market.

and source their requirements.C.L. Gupta Exports Ltd. of

Moradabad bagged the Top Export Award (All Handicrafts) for 2009-10 & 2010-11. Three Life-Time Achievement awards were also given on the occasion to Kailash Raj Tatiya from Jodhpur, Surinder Pal Ohri from Moradabad and Sri Chand Kwatra of Delhi for their outstanding contribution to the promotion of handicrafts exports over the years. Of the 103 awards, 48 companies received for 2009-10 and 55 for 2010-11.

After the awards ceremony, Rakesh Kumar, Executive Director, EPCH gave a vote of thanks saying that the government’s efforts have contributed a lot in the growth and development of the handicraft sector. Congratulating the winners he said “the award ceremony aims at motivating and encouraging the players in this industry to perform better”. He specifically thanked Ms. Rita Menon, for her immense contribution in helping out the industry and formulating policies in the favour of craftsmen during her tenure with the ministry. He concluded by saying “we look forward to cross the turnover of ` 1200 crore in the financial year 2012 -13.

Hyaat Regency located in the capital was transformed into a warm glittery award ceremony in stark contrast to the foggy night that waited outside. It was the occasion of the18th Export Award Function, organized by the Export Promotion Council for Handicrafts (EPCH), attended by Union Minister of State for Textiles Ms. Panabaaka Lakshmi, who presented 103 awards to handicraft exporters for their outstanding performance during the years 2009-10 and 2010-11.

Varun Malhotra and Raj Malhotra from Asian Handicrafts Pvt. Ltd. received the Top Export Award (Lace, Laces & Embroidery - Hat Trick) for 2009-10 & 2010-11 from MOS Textiles Panabaaka Lakshmi

(L-R) - Lekhraj Maheswari, Vice Chairman; Ravi Passi, Member COA; Rakesh kumar, ED, EPCH; S.S. Gupta, Development Commissioner (Handicrafts); MOS Textiles Panabaaka Lakshmi; Rita Menon, Secretary Textiles; Arvind Vadhera, Chairman EPCH; and Raj kumar Malhotra, Ex-Chairman, EPCH

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An Interesting outlook towards textiles by the textile InstituteThe India National Office (INO) of The Textile Institute (TI) Manchester organized a one day conference at the India Habitat Centre. The event marked a 100 year completion of the institute. It is a benchmark for INO’s four sections viz NISTI, EISTI, WISTI and SISTI are coming together as for the first time. “This is a significant moment for The Textile Institute as it completes 100 years. We have organized the conference on a note of celebration of the big event,” said Aloke Goyal, Hon. Secretary, TI.

growth of Spandex. They grow of about 70% of the world’s total Spandex. India, on the other hand is a meager consuming 2% of the world’s overall spandex,” said Gupta. Indorama aims to produce 15,000 tonnes of spandex per year. The consumption of this fabric will benefit the country at large. The company, which has its presence in eighteen countries of the world, with 35 manufacturing units claims to deliver the orders within two to three days, hence, no loss of shelf life. The company promises good After Sales Service, and assures quality of products. Risks of losses due to currency fluctuations are minimized as the product will be made locally available.

On being asked about his experience at the conference, D.N Bose, CEO of Micado Inc. said, “The

discussions were very informative and interesting. I particularly liked the subjects taken up by Subhash Anand and also appreciate the initiatives that are being taken by Indorama, which R.D Gupta brought to light through his presentation.” He also said that since India is not a great supplier of sports wear and active wear. China is the bulk supplier of clothes in that category (amounting to 70%). So the efforts of Indorama will bring up great benefits. “If this takes shape, the constraints of time, demand and supply will be taken care of,” he added.

The theme of the conference was upheld by all the speakers. The meeting was a session where great ideas came up, which when put application, will benefit the industry at large.

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The subject of the conference was “Interesting Textiles” on which various experts made their presentations.

The seminar was divided into two divisions, pre lunch and post lunch. The former was chaired by A.K.G Nair, Group Director of Pearl Academy and the latter was chaired by I.M Ishtaque. Vijay Bhalla, Prof. Subhash Anand, and R.D Gupta were speakers in the first round. Eminent people like Dr. P.R Roy, Dr. Surinder Tandon, and Nandita Abraham, who has over 18 years of experience in various aspects of Apparel and Textile Industry were speakers in the second round.

The subjects were dealt upon by the speakers with great expertise. Subhash Anand from the University of Bolton gave a speech on medical textiles. The speech brought to light how any part of the human body could be duplicated with the help of textiles. He also laid out an alternative treatment to the normal medical procedure of consumption of antibiotics for regeneration of the body. Textiles are a much healthier option for curing the diseased body.

R.D Gupta, Business Head of Indorama Industries Ltd, presented his paper on Spandex Growth and Application. Indorama is a company which trying to initiate the growth of Spandex in India. “So far China is the only country with a considerable

Dr. Surinder Tandon, Manager Apparel and Functional Textile Textile Science and Technology, AgResearch Limited

Aloke Goyal. Hony. Secretary.,India National Office,The Textile Institute, Manchester

Dilip Gianchandani, Consumer Goods, Regional Director, India and Bangladesh, Intertek and Prof. Subhash Anand, University of Bolton

kuldip kumar Sharma, CEO & Director Megatech Oversees (India) Ltd. and Dr. N.N Mahapatra Chairman Cum Treasurer, WISTI

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