Source: The Hindu Business Line, May 06, 2012
New Delhi: India is looking to set textile export target at $38 billion this fiscal, 12 per cent higher the previous year, despite slowdown in the Western markets as the country opens new avenues for shipments.
“Though there is economic uncertainty in the US and Europe, growing demand in new markets like Latin America and Africa will help India’s textile exports.
Source: The Economic Times, May 01, 2012
MUMBAI: Maharashtra Chief Minister Prithviraj Chavan said that the new textile policy, which aims to get Rs 40,000 crore investment in the next five years, will boost the sector in a massive way.
Speaking after inaugurating a website of the new policy, Chavan said 80 per cent of the cotton produced here is taken to neighbouring states for processing.
Source: The Economic Times, Feb 27, 2012
NEW DELHI: The Textiles Ministry today said it was in talks with the Finance Ministry to restructure Rs 1 lakh 
crore loans extended to the textiles sector.
“We are talking again to Finance Ministry (to recast textiles loans). It has suggested us that we need to look into the figures a little deeper,” Textiles Secretary Kiran Dhingra said here.
The industry has been clamouring for relief from the government on the plea that high interest rates have hit-hard the silk, spinning and power-loom units.
The Secretary was talking to reporters on the sidelines of an Apparel Export Promotion Council (AEPC) function.
Finance Minister Pranab Mukherjee is scheduled to present the Union Budget on March 16.
Recently, the Textiles Ministry had consultations with RBI but the central bank had turned down the proposal to recast the loan, mostly from the PSU lenders, stating it would not be “the best international practice”.
On the issue of social compliance code for garments manufacturers, Dhingra said, “I request ‘Disha’ management to take up small units initially and create awareness among them about issues like child labour and wages.”
The AEPC has launched an initiative ‘DISHA’, sponsored by Textiles Ministry, aimed at encouraging apparel units to adopt better social practices and make their items globally competitive.
The programme attempts to educate apparel exporters on a ‘code of ethics’ covering all critical areas of social and environmental concerns like child labour, health and industrial safety.
The move comes in the backdrop of the concerns raised by a few western countries like the US regarding usage of child labour in production of garments by some domestic units.
Source: The Economics Times, Feb 06, 2012 AHMEDABAD: Indian textile industry is estimated to reach USD 115 billion by the year end with an annual growth projection of 16 per cent, Assocham said today.
The growth will trigger corresponding demand in ancillary industry, including machinery and accessories, apart from demand from the emerging rural market, a Association Chamber of Commerce and Industry of India (Assocham) report said today.
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Source: The Economics Times, Jan 19, 2012
NEW DELHI: The government is planning to give incentives to the textiles sector with retrospective effect as it seeks to revive India’s second largest manufacturing sector burdened with sickness, debt and declining demand.
Source: The Economics Times, Jan 05, 2012
NEW DELHI: India’s handmade textiles industry can spin magic yarns for both domestic buyers and connoisseurs across the globe but government policies are coming in the way of its advancement, rues crafts impresario Jaya Jaitley, who has been associated with the sector for about four decades.
Source: The Economic Times, Nov 18, 2011
Indian textile companies may well have to cope with a difficult second half this fiscal as weak demand – both locally and globally – besides intense competition, due to abolishment of import duties on textile items of Bangladeshi textile companies, will impact their revenues.
Source: Business standard, Aug 31, 2011
Mumbai: Maharashtra will get its first technical textiles park — at Ichalkaranji off Kolhapur in the state’s western region.The project entails an investment of Rs 110 crore, of which government subsidy will total Rs 50 crore: four-fifth of this by the Centre and the rest Rs 10 crore by the state government.
The rest will be raised through members’ contribution, loan and subsidy under the Technology Up-gradation Fund. Technical textiles include textiles for automotive applications, medical textiles, geo textiles, agro textiles used for crop protection and protective clothing for fighters, bullet proof jackets and space suits.
Prakash Awade, who is the developer of the upcoming endeavour with the involvement of micro, small and medium enterprises, said the proposal had already been submitted to the textiles ministry and the approval was expected soon.
“The idea is to build up a CFC (common facility centre) and meet the needs of small and medium entrepreneurs in the technical textiles segment. The CFC will have all the necessary expertise to complete the job work as proposed by the micro, small and medium entrepreneurs who will be part of the proposed technical textiles park,” he told Business Standard.
The park will be commissioned in next six months as the land was in the possession of Kalappa Awade Industrial Estate. Awade said the textiles ministry has already launched technology mission on technical textiles. Besides, the ministry will announce two new missions for standardisation of testing laboratories and boosting marketing strength, he added.
According to Awade, the market for the technical textiles both in and outside India is huge. “Similar technical textiles parks can be set up in other parts of Maharashtra.”
Chief Minister Prithviraj Chavan says the proposed technical textiles park will add value to the traditional textiles sector and lead to a manifold increase in revenues.
Currently, only 25 per cent of cotton grown in Maharashtra is processed within its boundaries; the rest goes to other states having a vibrant textiles industry. Chavan has requested to the Centre to set up a public sector venture capital fund to encourage entrepreneurs to explore new areas of technical textiles.
The government’s move comes at a time when the recent Ficci study shows the Indian technical textiles industry is projected to grow to Rs 1.4 trillion ($31.4 billion) by 2016-17.
Two of the most important sectors, where technical textiles products have the potential of being used in significant volumes, are healthcare and infrastructure. It is expected that technical textiles would be increasingly used in both these sectors either due to increase in awareness or government regulations.
Source: Business standard, Aug 17, 2011
Mumbai/Ahmedabad: A fluctuating cotton and other raw material costs seem to have taken a toll on bottomline of textile companies for the first quarter. Companies like Aarvee Denim and Century Textiles have posted a dip in net profits for quarter ended June 30, 2011.
For instance, from a net profit of Rs 8.08 crore for the first quarter ended June 30 last year, Ahmedabad-based denim major Aarvee Denim and Exports Ltd. has posted a profit after tax of Rs 3.39 crore, registering a dip in bottomline of about 58 per cent. Similarly, Century Textiles and Industries Ltd. has posted a net profit of Rs 23.9 crore for the quarter ended June 30, 2011 as compared to Rs 100.43 crore for the quarter ended June 30, 2010.
“Raw materials have risen in the recent past, especially in terms of cotton. We have been running on high cost inventory since sometime. This has led to pressure on our bottomline. What’s more, even the second quarter looks difficult because we still have a high cost inventory,” says Utsav Pandva, chief financial officer of Aarvee Denim and Exports Ltd.
For Century Textiles and Industries Ltd., while its overall net profit has dipped by 76 per cent, the company’s textile segment has incurred a loss of Rs 11.86 crore for the quarter ended June 30 2011. The company has undertaken expansion activity in production of viscose filament yarn.
“The process of installation of 12 machines for production of viscose filament yarn is in progress in order to increase the production capacity of viscose filament yarn by about 5 per cent per annum. Further, two existing electrolyzers are being replaced by an energy efficient electrolyzer in the caustic soda plant. These improvements involve capital expenditure of Rs 50 crore and are expected to be completed before December 2011,” the company said in an official statement.
Meanwhile, Alok Industries has registered a net profit growth of mere 24 per cent for the first quarter ended June 30, 2011 at Rs 57.77 crore, up from Rs 46.51 crore for the corresponding period last year.
Talking about high cost inventory, Dilip Jiwrajka, managing director of Alok Industries Ltd. said, “We have made a conscious decision to keep our cotton inventory low because of high prices. We now have a less than 30 days inventory and run ‘hand-to-mouth’ as far as cotton is concerned. This has insulated us from constant fluctuations in cotton prices.”
On its part, Aarvee Denim still has an inventory of nine million kg of cotton meant for 4-5 months.
Source: The Economic Times, Aug 10, 2011
NEW DELHI: In a move that underlines the growing global appeal for Indian apparel, L Capital Asia, the private equity arm of the world’s largest luxury conglomerate LVMH Group, and Groupe Arnault is forming a 50:50 joint venture with Genesis Luxury Fashion to showcase ethnic haute couture.
The companies together are in talks to invest about Rs 80 crore initially, a person with direct knowledge of the development, told ET. “While L Capital Asia will bring in its knowledge and help create a multibrand system, Genesis will focus on retail distribution and infrastructure,” the person said.
The JV will act as a platform to promote and showcase work of budding designers besides established ones like Sabyasachi Mukherjee, Rohit Bal and Tarun Tahiliani.
In response to an email query, Ravi Thakran, managing partner of L Capital Asia, said: “We are in the process of talking to designers who share our vision for creating a national footprint through a scalable business model. The products should have a distinct identity that resonates with the Indian ethos.”
He, however, declined to comment on the investment details of the JV firm. Sanjay Kapoor, MD of Genesis Luxury, was not available for comment. Industry insiders say that with rising consumerism in the country, the designer and luxury fashion wear segment is increasingly attracting investor interest in the country.
Last month, L Capital Asia acquired a 25.5% stake in Genesis Luxury for about Rs 100 crore and has plans to pick up another additional 14.5% stake in the company in the coming months. Established in 2008, Genesis Luxury is the group company of the privatelyheld Genesis Colors, bringing together a diverse range of brands from top-end men’s wear to travel accessories and bags, among others.
It has leading luxury brands, including Satya Paul, Canali, Paul Smith, Just Cavalli and Jimmy Choo, among others. While LVMH focuses exclusively on high-end luxury goods such as Louis Vuitton and Dior in its portfolio, L Capital has been investing in aspirational and luxury goods makers all over the world.
The fund, which has a corpus of $640 million plans to invest across segments in India, including lifestyle retail, consumer brands, beauty & wellness and hospitality. It is the fourth fund from L Capital and has already invested in a few companies in Asia.
Among other private equity transactions sealed in the luxury fashion wear segment, Franklin Templeton Private Equity Strategy acquired a 20% stake in Kimaya Fashions for about Rs 60 crore, valuing the Mumbai-based designer wear retailer at Rs 300 crore.
