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2017 I Pages 64

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I cannot emphasise strongly enough that the goal of all the eff orts of the council is to create the most conducive and friendly environment for all of us to conduct our businesses, successfully.

We are very proud of having hosted Lord Tariq Ahmad of Wimbledon, UK Minister of State for Foreign and Commonwealth Aff airs, who visited our AEPC campus in Gurugram, to launch a drive towards ‘Gender equality at workplace’. The programme, funded by the UK's Foreign and Commonwealth Offi ce, is being launched in partnership with leading British brands and Indian manufacturers. As custodians of the sector that provides over USD 3 billion in wages to the women’s workforce alone, we remain a driving force behind building safe workplaces in the country.

I would like to express my gratitude to Shri Arun Jaitley, Hon’ble Union Minister of Finance, GoI and Smt Smriti Zubin Irani, Hon’ble Union Minister of Textiles, GoI and for considering our plea and reducing the GST on apparel job work from 18 per cent to fi ve per cent. I hope the reduction mitigates some pressure on the Industry and helps improve the aff ected situation of working capital.

We are not leaving any stone unturned in our eff orts towards enabling a post-transition period (from Oct 01, 2017) ROSL rate, which reimburses all other blocked and embedded taxes. We have been working on refund of IGST, paid on import of machinery for use by the apparel manufacturers and exporters. The issue of GST on air freight charges, levied on the export of goods from India has also been discussed with the concerned ministries and you can be hopeful of a positive outcome.

As you are aware, wages constitute almost 30 per cent of FOB in apparel. Anxiety and confusion over the issue of minimum wages aft er the clearance of the Wage Code Bill by the Cabinet was understandable. We have been in conversation on this and highlighted the risks associated with any one-sided decision. We will keep you abreast with developments on this front.I am pleased to let you know as a part of our export promotion initiatives, we successfully concluded our participation in Sourcing at Magic, Las Vegas with 64 booths and booked/negotiated business of USD 3.83

DEAR READERS,

APPAREL CHAIRMAN'S MESSAGE

million. We also look forward to a very fruitful India Trend Fair in Tokyo, Japan at the end of this month, as we busily make bookings for the space.

India has to now move towards WTO-compatible, production-based subsidies from export-based subsidies, in the wake of having achieved the threshold fi gures in exports. Schemes such as the Merchandise Exports from India, Export Promotion Capital Goods and interest equalisation for the textiles sector under the Foreign Trade Policy (FTP) 2015-20 are likely to get impacted. We do recognise the need to provide support for technology upgradation, capacity building and resolve infrastructure bottlenecks as we move away from direct incentives to exporters. We are, therefore, actively working on these fronts with some meritorious suggestions that we received from ‘Manthan 2017’, that was recently concluded in July.Friends, as we move forward with hope and optimism, let the spirit of victory over evil, that is so central to this festive month, also defi ne your deeds and lives.

Wish your family and you a very Happy Dussehra!

Ashok G RajaniChairman, AEPC

I look forward to your suggestions/feedback at [email protected]

Peninsula Spenta, Mathuradas Mill Compound, Senapati Bapat Marg, Lower Parel, Mumbai - 400 013. Tel: (022) 2481 1010Fax: (022) 2481 1021. E-mail: [email protected]

Plot 15,16 & 21/1, Village Chikhloli, Morivali, MIDC, Ambernath (West), Dist. Thane

EDITORIAL ADVISORY BOARD:

CHAIRMAN AEPCMr Ashok G Rajani

CHAIRMAN - EPMr Anil Buchasia

EXECUTIVE COMMITTEE MEMBERMr Rishi K Rajani

ADVISOR AEPCMrs Chandrima Chatterjee

PUBLISHERApparel Export Promotion Council

EDITORIAL

Asst. Editor

Kashmira Mirza

Senior Sub-Editor

Anurima Das

DESIGN

Creative Art Director

Parvez Shaikh

Sr. Designers

Sachin Bhogate

Anand Dhuri

Digital Imaging

Ninad Jadhav

Vikas Padloskar

SENIOR VICE PRESIDENT

Bobby Daniel

I N D I A

Printing Press:

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SEPTEMBER 2017

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Design, Editorial and Printed atSpenta Multimedia Pvt Ltd

Design and Editorial offi ce:

I News from different segments of the Industry

I A report on AEPC's seminar on reimbursement of Provident Fund to Apparel Export Industry under Pradhan Mantri Rojgar Protsahan Yojana (PMRPY)

I A report on the second phase of ‘Gender Equality in the Workplace’programme

I A report on the ‘Sustainable Garment Innovations’ showcased by students of ATDC during Textiles India 2017

I A report on the inspiring AEPC Executive Committe meeting

I Noti cations from the Ministry

I An insight into the rupee strength to observe where the Indian rupee is headed to!

I Pro ling Peru as a strong prospective

marketplace on the global trade map

I Examining the broader impacts of the

newer initiatives taken towards the container delivery plans

I Evaluating the unique position Qatar

holds on the global fashion business graph

I Looking into the progress path for India

as compared to the globe in Plasma technology for textiles

I A spotlight on two popular sustainable

brands from UK - People Tree and The Acey

I Highlighting concepts and measures, that the Indian fabric manufacturers are adapting to stay strong on the export path

I Analysing the growing importance of

textile trade between Australia and India

I A look at the proposed AEPC events upto March 2018

CONTENTS

I N D I AINSPIRE. INFORM. CONNECT.

VOL 03 I ISSUE 07 I September 2017 I Pages 64

EXPORT PROMOTION COUNCIL MAGAZINE SEPTEMBER 2017 4

INDIA’S READY MADE GARMENT (RMG) EXPORT UPDATE

RMG exports were to the tune of USD 1281.95 million in July 2017 with the decline of 11.86 per cent against the corresponding month of July 2016 which was

USD 1454.51 million.

In rupee term export for the Month of July 2017 was 8262.94 Cr. as against

9775.38 Cr. in July 2016 with the decline of 15.47 per cent.India’s RMG export to World in the April-July of 2017-18 was to the tune of USD

6183.35 million which has increased by 5.94 per cent compared to the same period of

previous fi nancial year. During April-July 2016-17, India’s apparel exports were to the

tune of USD 5836.72 million.

I N D I A ’ S R M G E X P O R T S T O T H E W O R L D

MonthFY 2016-17 FY 2017-18

MoM Growth of 2017-18 over 2016-17

(Per Cent)In INR

CroreIn US$ Million

In INR Crore

In US$ Million

INR US$

April 8817.92 1326.61 11272.24 1747.44 27.83 31.72

May 9940.10 1485.67 10342.55 1605.37 4.05 8.06

June 10565.13 1569.93 9979.57 1548.59 -5.54 -1.36

July 9775.38 1454.51 8262.94 1281.95 -15.47 -11.86

April-July 39098.53 5836.72 39857.30 6183.35 1.94 5.94Source: DGCI&S, Kolkata, 2017

APPAREL THE BROADCAST


AEPC along with Employees' Provident Fund Organisation,

Gurgaon organised a seminar on reimbursement of Provident

Fund to Apparel Export Industry under Pradhan Mantri Rojgar

Protsahan Yojana (PMRPY) on August 03, 2017, at AEPC,

Auditorium, Apparel House, Gurgaon. PMRPY scheme has

been launched by the Government of India to incentivise the

creation of new jobs in the formal sector wherein the Government

of India will pay the Employees’ Pension Scheme contribution of

12 per cent.

The seminar was presided by Dr V P Joy, IAS, Central PF

Commissioner, Shri Rajiv Bisht, Regional PF Commissioner,

Shri Manoranjan Kumar, Regional PF Commissioner,

Shri H K L Magu, Sr VC, AEPC along with Mr Ram Singh,

Secretary General, AEPC.

Commenting on the PMRPY initiative and the seminar,

Shri H K L Magu, Sr VC, AEPC said, "Introduction of Fixed

Term Employment and PMRPY has been a game changer. The

purpose of this seminar is to create awareness on the process

and methodology of the reimbursement of Provident Fund to

Apparel Export Industry. On previous occasions, the Offi ce

of the Textile Commissioner has conducted

various promotional programmes and this time

we have decided to conduct this programme

in Gurgaon since the city is the hub of the

apparel industry".

Dr V P Joy, IAS, Central PF Commissioner

said, "This seminar on the issue of reimbursement

of Provident Fund to Apparel Export Industry

under PMRPY is important as it has been a key

support for increasing employment in this sector,

as per the vision of the package. EPFO offi ce have

been receiving various requests for clarifi cation

on procedural issues related to the scheme and I

am hopeful that this session will be benefi cial to

all those who plan to avail this scheme".

Mr Ram Singh, Secretary General, AEPC in

his address said, "This seminar is a part of the

awareness generation initiatives which AEPC

has been conducting across India on the various

provisions of the Apparel Special Package.

Apparel Industry is a seasonal Industry and

to address the issue of seasonal employment,

Government has introduced PMRPY along

with the concept of a fi xed term employment

as part of labour reforms, which will help

in bringing parity between contractual and

permanent labourers in terms of wages and

other incentives".

At the Seminar, offi cials from AEPC and

EPFO addressed the queries pertaining to

the reimbursement of Provident Fund to

Apparel Export Industry under special package,

introduced by the Government of India, for

employment generation and export of garments.

In the Open House EPFO offi cials addressed

the queries pertaining to PMRPY. Around 55

exporters attended the seminar.

YOJANA FOR BENEFITAPPAREL EVENTS AND REPORTS


SEEKING EQUALITY

APPAREL EVENTS AND REPORTS

With an aim to improve gender equality at the

workplace, UK Minister of State for Foreign

and Commonwealth Aff airs, Lord Tariq

Ahmad of Wimbledon recently launched

the second phase of the ‘Gender Equality in

the Workplace’ programme at the offi ces of

Apparel Export Promotion Council (AEPC)

in Gurugram on August 10, 2017.

The programme, which is funded by the

UK's Foreign and Commonwealth Offi ce in

partnership with leading British brands and

Indian manufacturers is aimed at improving

garment workers’ awareness of their rights,

and the procedures for reporting and

resolving grievances.

The fi rst phase of the project took place in

Bangalore in 2016, benefi ting 2,000 female

workers in two factories. The project made use

of focus-group discussions, theatre workshops,

art installations and interactive sessions

with women workers, male supervisors and

management teams to train workers and

management on how to report and resolve

grievances. The success of this fi rst programme

encouraged the Foreign and Commonwealth

Offi ce (FCO) and its partners to increase

the scope fi ve-fold in 2017 by bringing on

new partners.

Commenting on the launch of the second

phase of the Gender Equality in the Workplace

programme Lord Tariq Ahmad said, the

programme has reaffi rmed the core principle of

business - the respect and dignity of workers,

9 EXPORT PROMOTION COUNCIL MAGAZINE SEPTEMBER 2017

around gender gap estimate that it will take

until the year 2095 to achieve global gender

parity in the workplace. Clearly changing gears

or emphasis in some quarters is, therefore,

essential. Each one of us in this room knows how

to do this eff ectively but, the same continues to

be our common challenge”, added Mr. Rajani

while addressing the gathering during the

launch event.

“We have been stressing on the importance

of not only employment, but also education

and training through our 175 training

centres. We feel it is a very healthy sign

that the Government of UK has taken this

matter up so seriously and we look forward

to greater involvement and some out of the

box results from this association. This visit

by Mr Minister is an evidence of the shared

values of the UK and India. Both nations have

made signifi cant progress on the front of UN

sustainable development goals particularly in

areas of culture, power, education, economy,

justice and violence against women and girls.

We do hope this association will take it to the

next level”, further added Mr Rajani, while

hosting the launch of ‘Gender Equality in the

Workplace’ programme.

Mr H K L Maggu, Vice Chairman, AEPC

along with the senior offi cials of AEPC

and key stakeholders from the garment

sector were present during the launch of

the second phase of Gender Equality in the

Workplace programme.

many of whom operated in supply chains

serving major international companies.

“With the UK’s international leadership in

the promotion of human rights and compliant

business practices, and India’s increasing

position as a manufacturing powerhouse makes

us natural partners”, said Lord Ahmad.

Mr Ashok G Rajani, Chairman, AEPC

said, “We are proud to host the launch of

the second phase of the Gender Equality in

the Workplace programme. As custodians of

the sector that provides over US$3 billion in

wages to the women’s workforce alone, AEPC

has been actively working to spread awareness

and enable workplaces, with the establishment

of the Internal Complaints Committee in

Apparel manufacturing units, among many

other initiatives. We have been stressing on

the importance of not only employment, but

also education and training through our 175

training centres”.

“Our role in spreading awareness and

building safe workplaces with the establishment

of Internal Complaints committee in Apparel

manufacturing units across the nation has

only been one of our many steps towards this.

While much has been done, there is so much

more that remains undone, in fact unexplored.

Research has highlighted that gender equality

has a positive correlation with GDP. More

gender balance on board has been believed

to demonstrate higher share prices and better

performance. But, at the same time, reports


SYNERGY OF INDUSTRY AND EDUCATION

AEPC AND ATDC


Students of Apparel Training & Design Centre

(ATDC) presented a project based on the

concept, ‘Stitch to Sustain - All about becoming

Sustainable’ during the Mega Fair ‘Textiles

India 2017’ which was held from June 30, 2017

to July 2, 2017 at Gandhinagar, Gujarat. The

opportunity to showcase their skills and talent

through ‘Sustainable Garments’ at the thematic

Buyer’s Lounge set up at ‘Textiles India 2017’

by AEPC, was provided by Chairman AEPC,

Shri Ashok G Rajani to the ATDC students.

As resources are getting scarce, the concept

of sustainability in apparel manufacturing

is gaining importance. Today the buyers in

the global market give utmost importance

to sustainability, which has resulted in the

emergence of sustainability requirements as an

important competitive tool.

AEPC has initiated the programme, ‘Stitch

to Sustain - All about becoming Sustainable’

to create awareness in the development of

sustainable garments for the global market

to improve competitiveness. It feels that

Indian manufacturers have an opportunity to

diff erentiate themselves in the global market

using sustainability as a USP.

Environmental issues like, increasing

landfi lls, challenged resource pools, climate

change, reducing biodiversity and water

scarcity has a direct bearing on the apparel

Industry. This initiative strives to keep these


Multitasking garments for wider use -

Garments designed in a way such that, they can

be worn in more than one way or can be used

for various occasions. Example, a skirt may be

worn as a top or the harem pants may be worn as

a top. A long skirt may be worn as a short skirt

or as trousers as well, which gives the customer

a range of options to utilise the garment thus,

building in a variety which reduces the wastage

of unnecessary production of garments.

More than 35 Styles were developed in

assortment both for the womenswear and the

menswear category and were displayed in the

AEPCs’ Buyer’s Lounge. ATDC Students also

explored the making of Sustainable Trims &

Accessories. Buttons out of Bamboo, Tamarind

seeds, and Date seeds were made by the

students. The entire range of garments

and accessories were greatly appreciated by

the buyers and the industry visitors, who

appreciated the eff ort.

Chairman AEPC, Shri Ashok G Rajani and

Dr Darlie Koshy, DG & CEO, ATDC & IAM

cherished the work of the talented students

of ATDC. ATDC Principal Ms Archana

Puri along with the faculty, kept the students

motivated during the course of the project.

The ATDC students of Diploma in Apparel

Manufacturing Technology and students of

Bachelor Degree in Vocation in Fashion Design

& Retail from ATDCs in Gurugram, Okhla,

Noida, and Rohini participated in the project.

All the participants were recognised by AEPC

through - certifi cates of appreciation. These

were handed over to the students by Shri H K

L Magu, Vice Chairman AEPC and Shri G S

Madan, Vice Chairman ATDC.

issues, at the forefront of the Manufacturers

and Brands which, link the common man.

The theme ‘Stitch to Sustain - All about

becoming Sustainable’ was introduced to

the ATDC students by Ms Shalini Bansal,

Educator & Media Design Cell Consultant,

AEPC. ATDC Students brought forward the

sustainability factor through the Garment

Making Process i.e. Garment design

ideas, pattern making ideas, and garment

manufacturing techniques. Garments like,

dresses, skirts, sleeveless tops, ladies blouses,

girl's trousers, men’s full sleeve shirts, kids

garments, shawls, scarves, muffl ers and capes,

based on less seams/processes, and zero wastage

were developed. These garments are the top/

commonly exported categories from India

and therefore were chosen for development as

part of the project. Enlisted below are some of

the sustainable practices which were adopted

during the manufacturing process:

Zero wastage of raw material - Garments

were designed with the idea of Zero wastage

i.e. zero per cent or Less than fi ve per cent

fabric remains unutilised in the process. The

marker-plan created refl ected, less than fi ve per

cent unutilised fabric in producing a garment.

Unutilised fabric was used for, plackets, tassels,

facings and ornamentation purposes for

optimum utilisation of fabric.

Less seams/less processes - Reduction in

processes required for production i.e. designing

a garment which doesn’t require complex

patternmaking. Thereby reducing manpower,

time and, also reducing number of seams will

require less machine time eventually, reducing

the ‘carbon foot print’.


AEPC MANTHAN: CHURN FOR CHANGE


‘The arrogance of success is to think, what we did yesterday will

be suffi cient for tomorrow. It isn't all over, everything has not

been invented. The Manthan has just begun and let's all dive

into it!’

AEPC Manthan was envisaged by Mr Ashok G Rajani,

Chairman, AEPC, as an opportunity - a prospect for the industry

to learn from Business leaders and Domain experts. It was an

opportunity for them to be the Change-makers and share their

vision with the council, the members and the audience.

'AEPC Manthan: Churn for Change' was planned as a

three-hour well informed brainstorming and deliberation on

important current issues pertaining to The Indian Apparel industry

and AEPC.

To make a reasonable beginning, four subjects were shortlisted

and four panels, of four to fi ve members each, were formed aft er

much thought and consideration. The Panellists were fed with

relevant data and statistics, pertaining to their subject to back the

brainstorming process.

The team was brought together the previous evening for

dinner, to exchange their thoughts internally and come out with

select ideas for the following day’s event.


As promised it was an experience with a diff erence! Everyone

came together to rediscover something old and to try and create

something new and undiscovered.

Having begun with an inspiration from the mythological

concept of Samudra Manthan, the participants seemed to have

immersed themselves into Aatma-Manthan, a deep thoughtful

discussion of very important issues.

Mr Ashok G Rajani, Chairman, AEPC, set off the morning

with an energetic and optimistic introduction and foundation

laying address for AEPC Manthan 2017.

The fi rst panel spoke extensively about how the credibility of

AEPC has to be improved in the eyes of the Government and

the Industry, while concentrating on the two most important

roles it has to play - Policy advocacy with PMO, Ministries at

the centre and states, and Government bodies like NITI Aayog

and that of Facilitation and Connecting the dots.

The group reiterated time and again the need for AEPC to

adopt a larger vision and professionalism. It was suggested that

AEPC should look at formulating short and long-term objectives

and time bound action plans with clear deliverable, which

should be reviewed regularly. The need for going paperless with

better utilisation of digital tools and demolition of some defunct

departments was stated in clear words.

The idea of forming Country specifi c desks (for Intelligence

and Information) was received with a positive response from

members – these are planned to be equipped with intelligence, so

1. Restructuring of AEPC into

a Corporate Entity - Shri

Premal Udani, Shri Jagdish

Hinduja, Shri Narendra Goenka,

Shri G S Madaan and PROgen

Deepak Agrawal

2. Export Promotion activities - Shri

N Chandran, Shri Anil Peshawari,

Shri Deepak Seth, Shri Elangovan

and PROgen Swarnam Gupta and

PROgen Harshit Baheria

3. To Restructure the Indian Apparel

Industry with disruptive intervention

through Product development and

new principles of management like,

Lean, redefi ned goals of Sustainability,

and more - Shri Virendar Uppal,

Shri Gautam Nair, Shri Raja

Shanmugam, Shri Raju Goenka, and

PROgen Abhishek Verma

4. The Way To Run Apparel

House - Shri H K L Magu, Dr A

Sakthivel, Shri Sudhir Sekhri, Shri

Rakesh Vaid



that the same can show how to enter a market,

products that sell in a particular market, the

important buyers sellers meeting platforms in

the country, and sizes, fabrics, price points,

colour/trend forecast, and other specifi cations

and preferences, etc.

Some forward thinkers articulated the

need for a one time intervention project on

UpSkilling (Intervention to upgrade skills) at

the national level. This, they believe, will help

avoid/ reduce wastage due to diff erential skill

levels on the shop fl oor. Some suggested that

Design and Scientist Conclaves may be planned

in all the eleven clusters by AEPC, along

with regional associations, especially around

current areas of concern for the industry, for

example; MMF.

The approach to policy framing should

revolve around three formats, said the panel

members who spoke on restructuring of the

industry - for entry level exporters ( 10-25

Cr) support should be provided in Product

development and Funding, for mid-level

exporters ( 100-200 Cr) support should be

provided to set up manufacturing in tier 2/3

cities and interiors, for Big exporters (more

than 200 Cr) support should be provided to

integrate vertically.

There seemed to be a unanimous demand for

on-boarding external consultant expertise for

improving industrial productivity, enhancing

India’s market share (through policy framing

around lean seasons, product diversifi cation,

suitable branding) and addressing issues of

fabric unavailability.

Suggestions poured in around the utilisation

of Apparel house through facilities like

Incubation and R &D centres, Accessories

and fabric showrooms and a centre for

continuing education.

Local governance has been the cornerstone

of good governance across the world. Can

AEPC also adopt this into their system of

governance for betterment of the future?

Mr Vijay Mathur spoke on the introduction

of concept of constituencies for the AEPC

Executive Committee members.

An intense morning with numerous

unanswered questions and new suggestions

– all those present in the room had a lot of

food for thought to go back with. To make a

reasonable beginning, however, AEPC had the

tough task to curtail their list of ‘to dos’, lest it

fails like most New Year resolutions.

No eff orts or courage is enough without

purpose and direction. Mr Rahul Mehta

summed up the discussions, in consultation

with the Chairman, AEPC, by presenting the

way forward for all the ideas and suggestions

received across the four sessions, to the

audience at MANTHAN. The idea was to

complete the dialogue with a direction and set

off on the journey.

Mr Lalit Gulati concluded the morning

session by proposing the vote of thanks to

the Chairman, Vice Chairman, Participants,

and Organisers.

Spade work has begun on the suggested

measures and teams are being formed to

shoulder the responsibilities. One can hope

to hear some good news and see some strong

measures being taken very soon.


This has reference to Department of Revenue’s notifi cation No 20/2017 dated

August 22, 2017. The Government has reduced the rate of GST on job work

in relation to textiles and textile products falling under chapter 50 to 63 (earlier

limited to textile yarns and fabrics only) from 18 per cent to fi ve per cent. The

rates are eff ective from the date of issue of the notifi cation, which is August 22,

2017 onwards.

This has reference to Department of Revenue’s circular No 34/2017 - Customs

dated August 09, 2017. Ministry of fi nance has restored the pre-GST RoSL

rates. This has been made eff ective for a transition period of three months i.e.

July 01, 2017 to September 30, 2017. For all export with export order dates on

or before July 01, 2017 for which RoSL is claimed, the exporter has to submit

the undertaking in the revised format that has been suitably included in the

EDI shipping bill w.e.f. August 05, 2017. Considering that the exports have

already been made in the period July 01, 2017 to August 05, 2017 for which

the revised undertaking is not possible to be furnished electronically along

with the shipping bills already fi led, exporters need to submit an undertaking

to the customs in the manual format as annexed to the circular. This could

be a single undertaking covering export products in the various shipping bills

of the exporter. The revised undertaking shall be irrespective of declaration/

undertaking, if any, given earlier.

APPAREL MINISTRY NOTIFICATIONS


APPAREL GUEST COLUMN

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RUPEE HEADED 60 OR 70?


Senate and a Republican majority in the

House of Representatives to push through

legislative reforms. Of course it did not pan

out that way and Trump trade fi zzled out.

The thing here is that expectations and views

can defi nitely go wrong but it is important

how quickly one reassesses the big picture

and positions accordingly? How quickly one

gets rid of what behavioural economists refer

to as the anchoring bias? How quickly one

realises that a move is not a retracement but

a reversal? How quickly one gives up hope

of Rupee going to 70 (in this case), when

it is at 68, 67 or 66 on the down move? As

the Indian economy gets more integrated

into the global fabric, it is important to

closely track global economic and political

developments (sometimes more important

than tracking domestic headlines and data)

to capture the market pulse and sense key

macroeconomic shift s earlier than others do.

What the US Federal Reserve does or what

happens in Capitol Hill directly impacts

the Rupee.

In fact, the move from 69 to 63.55 can be

attributed largely to yield seeking hot money

infl ows. It has got little to do with domestic

macroeconomic strength in my opinion. As

the Trump trade/refl ation trade collapsed, so

did the US yields. Pursuit of higher yields

drove money into emerging market stocks

and bonds, causing the currencies of these

economies to appreciate (also referred to

as carry trade). Rupee has appreciated in

line with other Asian currencies such as,

the Korean Won, Taiwanese Dollar, and

Thai Baht.

India, on account of its sound fundamentals

and stable governance has been one of the

biggest benefi ciaries of hot money infl ows but

not the only one. Certainly when the global

liquidity tide turns (unwinding of carry

trade) India would not, remain insulated

Let’s just rewind a little to the beginning

of 2017 when the Rupee was on the brink

of breaking 69 against the US Dollar. The

consensus market expectations then were

that the Rupee would soon break the 70

mark, the US Dollar index would attempt

110 and that the US 10 year yields would

head higher to 3.5 per cent. There was

a lot of anticipation around the new US

president’s populist policies stoking infl ation

and ultimately pushing the US yields and

the US Dollar higher (popularly known as

the Trump trade). These expectations were

justifi ed then as; market participants felt that

it would be a cakewalk for a Republican

president with a Republican majority in the


APPAREL GUEST COLUMN

and Rupee would depreciate in line with

other currencies then. What substantiates

the opinion, that the Rupee rally has got

little to do with domestic factors is the fact,

that most of the high frequency data such as,

PMIs, IIP, and core sector data have pointed

to deceleration in domestic industrial

activity post demonetisation. The output

gap continues to remain negative, which

indicates that there is an excess capacity. The

economy is operating below its potential

output and therefore private capex cycle is

not picking up. Growth in credit off -take is

at a multiyear low and continues to remain

sluggish. The growth of corporate earnings

has also not picked up to warrant the current

exorbitantly high stock valuations. What

make India’s fundamentals appear robust are

a combination of three factors; low global

crude prices, strong Rupee, and normal

monsoons. These three factors combined

have kept a lid on infl ation, resulting in

high real rates and this is what is continuing

to draw infl ows, especially into the debt

markets (The debt market utilisation limits

are running close to 100 per cent for FPIs for

both government as well as corporate bonds).

There are other concerns on the domestic

front as well, such as, the NPA situation

of banks and the fi scal defi cit of states.

Though the center may achieve its fi scal

defi cit target for the fi nancial year, fi nances

of state governments are in tatters and may

deteriorate further due to farm loan waivers,

increase in MSPs and implementation of pay

commission. The combined fi scal defi cit of

state and center is therefore alarming.

Though Rupee appreciation helps keep

infl ation under check, it poses another set

of challenge. Our exports priced in foreign

currency terms become expensive if Rupee

appreciates more in comparison to those

of other countries which compete for the

same share of export pie. In case of sectors

where the cost of switching for the overseas

buyer is low, it can severely hurt exports.

Earlier government used to extend sops to

such sectors by way of - export promotion

schemes, interest subventions, and tax

breaks etc. But, as India is a signatory to the

WTO (World Trade Organisation), it will

eventually have to phase out such sops. Also,

one-sided intervention by the central bank

to protect the Rupee can be considered by

trading partners as manipulative. Therefore

the only way for exporters to stay competitive

is, by improving productivity (reduce

operating cost by embracing automation

and improving skills of the labour force),

by diff erentiating product off erings, and by

hedging exposures effi ciently*.

What will continue to drive the Rupee

going forward would be the yield diff erential

between the US and India which in turn

will be driven by Federal Reserve monetary

policy to a large extent. Currently despite the

US economy being close to full employment,

wage and price pressures are moderate.

This coupled with the inability of Trump

administration to pass legislative reforms, is

allowing the Federal Reserve to hike rates

gradually. Any spike in infl ation or wage

growth can drive up US yields and push the

US Dollar higher. The Federal Reserve is

*Another challenge that Rupee appreciation relative to other currencies poses is that there is a chance of domestically

manufactured goods being replaced by cheap imported substitutes. For example, our trade defi cit with China was USD 50

billion in 2016. It may widen further if Rupee continues to appreciate against the Chinese Yuan. This could aff ect domestic

manufacturers adversely.


in the UK. Sterling continues to remain a

sell on rallies due to uncertainties around

Brexit negotiations. 1.25 is the likely target

on the down side. A break above 1.3250

would require a reassessment of this view.

As far as Rupee levels are concerned, as

we saw in the beginning of this article - in

February market expectations were skewed

to the up side (towards 70 and above). At

this point too, the expectations skewed

albeit in the opposite direction (towards

61-62). A break above 64.90 would

imply a reversal and may require us to

shed our anchoring bias again. In order to

benefi t from a sudden spike in Rupee,

exporters can consider hedging their

exposures through a combination of

forwards and options. For example,

hedging a part of the exposure through

forwards, ensures that forward premium or

carry is not missed out on and hedging the

other part through zero cost risk reversals

ensures that down side is protected and

upside participation is retained (in case

Rupee breaks out on the upside).

Euro has thrashed expectations of

those who felt parity with the US Dollar

was inevitable. Though the ECB has

indicated that asset purchases would

continue well into 2018 and that rate hike

would happen only aft er asset purchases

have stopped, the Euro has rallied. This

is because the business confi dence and

economic sentiment indicators of most of

the Eurozone economies have improved

and markets believe the ECB is behind the

curve, as far as monetary policy action is

concerned. This macroeconomic shift has

completely altered the view on the Euro and

real money institutions are buyers of Euro

on dips. 1.20 is a key psychological level on

the up side whereas 1.1490 would be a key

support from a medium term perspective.

likely to announce balance sheet reduction in

September and may keep the December rate

hike data dependent. Balance sheet reduction

is likely to be calibrated and is not likely

to be disruptive for the emerging markets.

However, announcement of corporate tax

reforms could result in a reversal for the US

Dollar. National Economic Advisor, Gary

Cohn has been categorical in stating that the

US cannot have a higher tax rate than OECD

average, and that tax reforms is his number

one priority this year. The RBI monetary

policy will depend to a great degree on the

pace of Fed rate hikes. If Fed indicates that

pace of hike rates would be faster than what

is currently factored in by the markets, it

will be diffi cult for the RBI to cut rates from

here on.

Euro has thrashed expectations of

those who felt parity with the US Dollar

was inevitable. Though the ECB has

indicated that asset purchases would

continue well into 2018 and that rate hike

would happen only aft er asset purchases

have stopped, the Euro has rallied. This

is because the business confi dence and

economic sentiment indicators of most of

the Eurozone economies have improved

and markets believe, the ECB is behind the

curve as far as, monetary policy action is

concerned. This macroeconomic shift has

completely altered the view of the Euro and

real money institutions are buyers of Euro

on dips. 1.20 is a key psychological level on

the up side whereas 1.1490 would be a key

support from a medium term perspective.

The Bank of England has signaled that

the pace of rate hikes would be more

gradual as compared to previous hiking

cycles, due to Brexit related uncertainties.

High infl ation on account of weaker

Sterling (postBrexit) has reduced real wage

growth and this could hurt consumption


PERU: PROSPECT FORECAST

APPAREL MARKET FOCUS



The Republic of Peru located in the Western

Pacifi c coast of South America is a country

with a rich cultural and environmental

heritage. It is surrounded by the nations of

Ecuador and Colombia in the north, Brazil

in the east, Chile in the South, and Bolivia in

the south-east. Within the region, Peru shares

many common historical and topographical

commonalities with its neighbouring

countries. As a part of the South American

continent, the nation has been home to many

ancient civilisations such as the Inca Empire

about 5000 years ago. Colonial occupation

has also been a defi ning political infl uence

since the 16th century. Over the course of its

colonial history, Peru has reformed around

various movements for independence,

which ultimately came into force on

August 14, 1879. Since then, the nation

has faced numerous domestic and regional

confl icts along with a variety of political

systems rising and falling over the years. At

present, Peru operates as a representative

democratic republic nation and has

consistently made progress over the last

20 years across all social, economic, and

political indicators.

According to projections from the

International Monetary Fund’s Economic

Outlook Report 2017, Peru ranks as the 48th

largest economy globally in terms of gross

domestic product, with a nominal GDP of

USD 207 billion and ranks 46th in terms of

purchase price parity GDP of nearly Intl$

430 billion. The nominal GDP per capita for

2017 is estimated to be USD 6,506 billion,

while the PPP based GDP per capita was

estimated to be Intl$ 13,501, giving Peru a

rank of 87th and 92nd respectively, in terms

of global ranking. The country is therefore

the seventh largest national economy among

the Latin American and Caribbean nations in

terms of PPP based Gross Domestic Product,

making it a regional infl uencer. In addition

to which it is also the 10th highest ranked

nation in the region in terms of High Human


Development as calculated by the World

Bank, with a global rank of 87th.

One of the most vital parts of Peru’s

national wealth is its abundant biodiversity

and natural resources. As a part of the South

American continent, Peru’s Amazon region

is the heart of its natural wealth with over

21,000 species of plant life, nearly 6,000 of

which are endemic. In addition to which

the nation is home to nearly 2,000 species

of birds, 500 species of mammals and over

300 species of reptiles. Many of these fauna

are part of the endangered and rare variety

that is unique to the region. The presence

of such dense and environmentally essential

fl ora and fauna has already been sacrifi ced

to a signifi cant degree, through mining

and manufacturing operations. An essential

development goal for the nation has been

to prevent the indiscriminate expansion of

industry and urbanisation into the heart of

the environment.

Typically, the nation has also maintained a

low infl ation rate which has proven sensitive

to changes in oil and commodity prices over

the last couple of years, which is counted

amongst the lowest in the region. In addition

to its improving Human Development

Index, the nation has also made signifi cant

improvements in reducing poverty - going

from 60 per cent in 2004 to 20.7 per cent

in 2017. Over the last 20 years, the shift in



the economy has followed global trends and

moved from agrarian and manufacturing

sectors to the service sector. At present, the

service sector constitutes 53 per cent of the

GDP followed by manufacturing at 22 per

cent and agriculture below eight per cent.

A sizable portion of its economic output, at

about 15 per cent, is still based on extractive

industries such as mining and oil drilling. In

general, the nation is classifi ed as an upper

middle income economy, by the World

Bank. The overall state of the Peruvian

economy is marked with a stable and steady

long-term growth for the future.

It is not surprising that Peru has a strong

connection with the world of apparel and

textile. In terms of sourcing, the nation has

proven itself to be a producer of high quality

goods for the last ten years. The drawbacks

however have always come in the form of

effi ciency of process with respect to ‘speed

to market’, as well as a lacking synthetics

segment. However, the various benefi ts

of the nation's unique position in South

America have allowed it to make signifi cant

free trade agreements (FTA) with countries

like China and the United States to improve

exports. In total, the nation enjoys access to

19 free trade agreements and has committed

to considerably improve its processes

and infrastructure.

The overall health of the apparel and textile

sector has decreased over the last fi ve years

due to systemic problems relating to process

and infrastructure, as well as increased

competition from Asia. At present, apparel

and textiles are expected to make up about

USD1.2 billion of total exports, with plans

of expanding to USD3 billion by 2024.

This new direction is expected to generate

2,00,000 new jobs in addition to the

existing 3,50,000 workforce in the apparel

industry. The restructuring of this sector is


already underway with the production chain

being integrated, from fi bre to yarn to fabric

making to garment making. The goal is to

improve response time owing to market

demands and to modernise manufacturing

facilities with new specialised technology.

The real challenge for the Peruvian

industry is to fi nd a balance between

next generation modernisation with

their priority of supporting local artisans

and hand-knitted products.

The strength of their domestic

craft smanship is well known, thanks to the

high quality of raw materials that the nation

is known for, namely Alpaca, Pima Cotton

and Vicuna. The country’s expertise in

these natural fabrics along with their many

blends in silk, wool, bamboo and linen

make it a lucrative segment of the market in

which, Peru enjoys relative control due to

its sourcing advantages. Peru is the source

of over 80 per cent of the world’s Alpaca

production, which has become a branding

synonym for the nation. The continued

popularity of the material in modern

times has allowed it to remain in style and

demand even today. This demand for the

material is also an essential ingredient in

Peru’s development initiatives to support

its Alpaca farmers and the Andean region

in general. The breeding and rearing of

Alpaca is the sole source of employment

and survival for this region making it

integral for national development. In

addition to traditional materials, the nation

is attempting to complement its natural

resources with advances in synthetics which

can allow it to enter a whole new segment of

sourcing opportunities.

While both the apparel sector and the

overall economy of Peru seem to be on an

upswing, with upturned growth fi gures,

the combination of domestic political

confl icts combined with the environmental

catastrophes has triggered conservative

forecasts for the short term. One of the most

signifi cant points of concern has been the

Odebrecht corruption scandal which has

tarred the image of the nation even though

it seems to be an isolated incident. However,

it should be recognised that Peru ranks only

72nd in the Transparency International's

Corruption Perception Index which may

imply at, more cautious judgements for

incoming businesses. But with economic

activity surging in 2017 as well as the rapid

expansion of the manufacturing sector, the

overall picture for the nation still looks bright.

And as the political climate comes to calm,

we can already see that certain large scale

projects such as major airport infrastructure

plans and gas pipelines are being resumed.

However, in the light of corruption and

uncertainty, there remains the need to

remain vigilant when doing business in

Peru. And as the history of the region has

shown, the wealth of nature has too oft en

been sacrifi ced for short-term economic

gain by corrupt political leadership. As the

global textile and apparel industries look at

Peru as a partner, it is well worth paying

attention to long-term goals that benefi t the

nation’s economic bottom line as well as its

environmental stability and contribution to

the world at large. AL

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APPAREL UNIQUE INITIATIVES

GOING BACK TO THE PROBLEM OF CYCLES?


The initiative being mooted by the

government on direct container delivery plan

or direct port delivery scheme (DPD) from the

gateway ports may bring cheer to the apparel

exporters. The initiative is likely to cut down

on lead time as importers/consignees can

directly take delivery of the containers from

the port terminals and haul them to factories

without taking them fi rst to container freight

stations (CFS) and then to the factories. An

importer and apparel exporter is thus assured

clearance of cargo in less than 48 hours under

DPD as against an average of seven days if

routed through a CFS.

A CFS is an off dock facility licensed by

the customs’ department, to help decongest

a port by shift ing containerised cargo, and for

carrying out customs related activities outside

the port area. Due to customs’ procedures

and space constraints at many of the Indian

ports, customs’ clearance happens at CFS.

Flagship gateway port of Jawaharlal Nehru

Port, handling bulk of apparel shipment

from North and Western India was designed

on the CFS model. During late 2016, the

government directed JNPT and the customs’

to raise the proportion of DPD fi rst from

three per cent to 40 per cent and later to 70

per cent. The scheme was introduced at the

Jawaharlal Nehru Port and Chennai Port,

spurred from a report initiated by the World

Bank on ease of doing business.

While the initiative may contribute towards

curtailing lead times, if examined on a

broader perspective, on one side it may result

in faster release of import containers, for

further movement to the factories through

trailer trucks. However, if closely examined

once again, given the present heavy distortion

in railway connectivity, both on the golden

quadrilateral and the arterial routes of the

Indian Railways, would not there be a slow

movement of outbound export containers

originating from the apparel export

containers to the gateway ports? Will this not

contribute towards extending the container

movement cycle altogether? The railway

route congestion may not be a major issue

now on the golden quadrilateral handling the

container trains, precisely the Delhi-Mumbai

corridor due to retrograded global demand.

However, with the revival of demand in

near future, curtailed by the absence of CFS,

which are cargo aggregation centres, what is

the situation likely to be?

This is not hard to fi nd going back into the

recent past experiences leading to containers

piling up at the JN port. Led by complete

non-functioning of the port due to the heavy

monsoon, a few years back, vessels were

unable to berth at the port. This resulted in

piling up of export and containers inside and

outside the port premises as rail movement got


APPAREL UNIQUE INITIATIVES

cut off to the port. Port authorities partially

managed to overcome the situation by moving

the export and import containers through

barges via nearby Mumbai Port. The exercise

took a deep toll on timely delivery of apparel

export containers to Europe and US through

the port.

It will be interesting to see what will

be the outcome of the initiative if the

government moves with full guns to curtail

the CFS, coinciding during the October

and November months when apparel export

deliveries will start to take place with the

onset of festive season in the west. It will

be unfortunate if any force majeure occurs

beyond the ports control, resultantly piling

up of containers inside the port also, which

was witnessed in the Chennai Port recently.

In recent past exim containers were getting

piled up at the Chennai Port. The piling up

resulted in vessel lines imposing demurrage

charges on the exporters. There has been

recurrence of such incidents. Primary reason

for piling up of the containers is attributed

to tardy evacuation of the containers from

the port’s two container terminals being

operated by private operators. To prevent

recurrence of the incident, Chennai Port is

planning to upgrade the rail link connecting

the port and the container terminals. The

new rail link will connect to the mainline

link of the Southern Railway.

According to top Chennai Port offi cials,

“The railway will lay two more lines adjacent

to the existing track connecting the port.

Land has already been provided by us to

the Southern Railways and work is likely

to commence soon. Both the terminals will

benefi t from the new link as it will facilitate

movement of export containers in enhanced

volumes from various hinterland of the

port, most importantly Whitefi eld Inland

Container Depot of Bengaluru. Chennai

apparel exporters will also gain from the


signaling and debottlenecking the saturated

arterial routes connecting the mainline links.

Seamless transportation by the railways will

be vital for checking accidents on the mainline

and arterial routes, hampering the movement

of container trains as indicated recently by

spate of accidents at rapid frequencies.

Improvement in rail link supported by

appropriate container services will lead to

timely arrival and evacuation of containers.

This is likely to minimise any incident of

container pile-ups. Moreover, it will attract

services of mainline and container feeder

vessels. Assured larger container supported

by timely railway container movements will

resultantly increase the vessel frequencies.

This will allow the apparel exporters from

the cluster better vessel selection options;

moreover there could be chances of better

bargaining of rates. Signifi cantly the same

will allow integration of newer services

as well. All this benefi ts, the apparel

cargo exporters.

upcoming link, as it will ensure faster

evacuation of import containers.”

Chennai Port has two container terminals.

The fi rst one is operated by Chennai Container

Terminal Private limited (CCTPL), a fully

owned subsidiary of Dubai Ports World and

the second one is Chennai International

Terminal Private Limited (CITPL) owned

by the Port Authority of Singapore. The

CCTPL terminal has an 885 metres long

container berth, while 820 metres is the

berth size of the CITPL operated terminal.

CITPL has a rail head siding adjacent to

the berth. The new link will benefi t both

these terminals.

The new rail link is quite essential for the

Chennai Apparel Cluster for moving the

export and import containers to-and-from

the port to the export clusters. This is more

so, owing to the importance of the apparel

cluster, which is predominantly an export

centric one.

While DPD is a positive initiative in itself,

the initiative can be rather holistically

supplemented, without marginalising the

CFS altogether, owing to their role as cargo

aggregation centres by improving railway

connectivity by improving the levels of

services. Not to mention timely availability

of services. While, the railways have made

improvements in travel speed of container

trains, the service improvements need to

be bettered by making advancement in

infrastructure through more sophisticated

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Qatar : One billion dollar fashion market

APPAREL INSIGHTS

Despite being a small nation by geography, Qatar commands signifi cant

attention from the apparel and fashion industry. As a high-income economy

backed by the world's’ third largest natural gas and oil reserves, Qatar currently

ranks as the sixth highest per capita income nation in the world at USD 64,447.

It is therefore a prime destination for high-end luxury product manufacturers

to seek out their key customers, making it the home of a USD 1.3 billion

dollar fashion market. Due to its massive wealth and consumerist culture, it

has become known the world over as an infl uencer of international brands and

businesses. However its political and diplomatic realities have recently caused

turbulence in its position and standing. The consequences of this ongoing

turmoil are expected to have a major global impact on the state of luxury

fashion and has justifi ably attracted attention from enterprises and economies

the world over.


APPAREL INSIGHTS

As early as the April of 2017, Qatar was

primed for being the single most lucrative

location for luxury goods in the world.

The supporting optimism behind this belief

was the rising high incomes and overall

investment expenditure fl owing into the

fashion industry. This wasn’t surprising

given that the GDP per capita of Qatar was

over six times the global average and higher

than the United States and most of Europe.

The spending power of the Middle-East

region on the whole has been recorded as

being on an upward trend supporting the

positive projections. The combination of

high spending power and the reliable repeat

expenditure with each fashion cycle make

Qatar, and the Middle East in general, a

profi table location to do business.

Reports from BMI Research further

cement this fact for the region as numerous

growth metrics have shown increases across

all segments. Clothing and footwear is

expected to grow by fi ve per cent between

2015 and 2020, outstripping the negative

growth expected in North America and less

than 0.5 per cent growth in Europe. Qatar

specifi cally is expected to see an increase

in private consumption, growing at over

fi ve per cent CAGR (compounded annual

growth rate) during the same period. This

rate once again far outstrips other major

luxury markets such as, Hong Kong, France,

and the US, which are expected to grow only

by 4.2 per cent, 0.9 per cent and 3.6 per cent

respectively, during the 2015-2020 period.

The focus on brand oriented sales has

already been observed with fewer off erings

at discounted department stores, and

increased focus on brand name exclusivity

that maintain a high degree of eliteness. This

is also leading to a slowdown in the product

turnaround time with respect to ready-made

lines of goods, and an increased focus on

customised made-to-order products. The

competition with fast fashion in this market

space is being strategically reworked so as

to generate brand value appeal as opposed

to convenience and cost. The demand for

premium runway fashion is being groomed

so that luxury brands can ‘out compete’

the typical ready-to-wear luxury products.

This is the key approach that is, being used

to sell high-end couture goods, as a way of

promoting ethical consumption and adopting

the trend of ‘slow luxury’. This new blend of

environment friendly products along with

premium couture stylings is being promoted

as a slow luxury alternative for the fi nancial

elite in the region, which are predominantly

part of the millennial demographic. This

marketing of goods is established at a

higher price point for all apparel goods and

promotes uniqueness in craft smanship,

quality and social authenticity - key selling

points of the millennial generation.While


this projected shift and movement in the

market has been well on its way over the last

year - some diplomatic complications have

caused many to reconsider the future or

at least pause in the uncertain face of it. In

June 2017, news broke out, that the Qatari

government had paid nearly USD one billion

in ransom to terrorist organisations in Iran

for the release of the members of their royal

family. This news alarmed and frightened

the region with foreign investors and tourists

abandoning the nation almost immediately.

In an additional fall out, the neighbouring

nations of Saudi Arabia, Bahrain, the UAE,

Egypt and Yemen also severed connections

with Qatar, suspending all travel and trade

ties, consequently causing the Qatari stock

market to crash precipitously. The complete

economic and diplomatic excision of Qatar

from the regional economies had been felt

deeply in its economic projections since

then, the future of the USD1.3 billion

fashion market in a fl ux.

It is important to recognise that the problem

with Qatar, aff ects massive tranches of the

fashion business. The country has heavily

invested into the global luxury goods trade

by buying up shares in numerous global

businesses. Apart from its own domestic

apparel and footwear market - which is

expected to grow by 51 per cent within 2019,

there is also the associated risk with its global

operations. The wealth fund of the nation -

Qatar Investment Authority - is the owner

of London’s landmark luxury department

store Harrods. In addition to which, the state

backed investment conglomerate Mayhoola

for Investments has made numerous stake

purchases in many global companies. Since

2011, Mayhoola has purchased France’s

Balmain for USD565 million and Italy’s

Valentino for USD850 million, in addition

to which it has acquired 38 per cent of UK’s

Any Hindmarch, 11.3 per cent of New York’s

It is

important

to recognise

that the

problem

with Qatar,

aff ects

massive

tranches of

the fashion

business.


APPAREL INSIGHTS

Tiff any & Co., one per cent of the French

holding LVMH, as well as controlling shares

in the French department store Printemps.

At present, the Qatari government is in

mediations with its neighbouring nations and

attempting to wade off economic sanctions.

The market in general is unsteady in the

wake of the political turmoil and expressing

optimistic notions. However, pragmatic

analysts believe that if the mediations go on

for too long, then future projections will

have to be revised, radically altering the

country’s position in the fashion industry.

With consumer spending levels expected

to reach USD31 billion in 2017 alone, this

standstill in regional trade and consumer

operations could be a death-knell for many

brands and businesses. And while the long-

term consequences are clearly expected

to have radically negative consequences

for the nation, the current crisis revolves

around trade routes and logistical support.

Since Qatar forms an important link in the

regional distribution model for the Middle-

East, many businesses operating in places like

UAE, Dubai and even Europe are facing the

pinch since they can’t operate through Qatar.

In this context, the impact on the retail sector

whose supply chains fl ow through Qatar are

also facing the brunt of the slowdown since all

transport to and from Qatari ports has been

halted. The most signifi cant of these routes

is with the UAE which is predominantly

operated by a Qatari shipping line with over

90 per cent market share.

As the Qatari government attempts to

placate or negotiate a return to normal

relations with other Middle-Eastern nations,

the future of the luxury brand segment hangs

in the balance. As ‘The State of Fashion’

report from McKinsey research points out

- "The previous year 2016 was one of the

toughest for the luxury fashion segment.

With global incidents such as the terrorist attacks

in France, the Brexit referendum and volatility

in the Chinese markets - there was much lost,

in terms of growth. In addition to which the

changing sensibility of consumers remains a key

challenge for businesses, which are fi nding the

marketplace more fragmented and complex than

ever before". The current reality remains one

of uncertainty where the setback to a USD1.3

billion market could potentially have cascading

eff ects on the overall health of the USD2.4

trillion global industry. As of now the future rests

on the diplomatic dealing in Doha and how they

eventually shape the future of the region.


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FABRIC UNDERGOES

PLASMAREVIVAL


APPAREL INSIGHTS

Right from sportswear, to medical textile,

to protective work gear, technology has

created new and alternative fabrics. One of

the main reasons behind these revolutionary

designs is the use of plasma technology in the

textile industry.

Introduced in the 1960s, plasma

technology in textiles can be described as

the industrial application of low-temperature

and low-pressure plasma, mainly in the form

of microelectronic etching. Over time, in

addition to other material surfaces, the use

of plasma technology was also extended to

other metal and chemical polymers. This

innovative textile treatment method is not

only environment friendly, but has also

since discovery, demonstrated better results,

increasing the demand for plasma treatment

of fabrics within the textile industry.

In simple technical terms, plasma can be

defi ned as ‘an ionized gas with equal density

of positive and negative charges, which exist

over an extremely wide range of temperature

and pressure’. In other words, plasma can also

be described as an ‘ensemble of randomly

moving, charged atomic particles with a

suffi cient particle density to remain, on

average, electrically neutral’.

Within the textile industry, the plasma

technology used can consist of ions, free

electrons, and UV-radiation or radicals,

varying based on the kind of gas used. When

fabrics are treated with plasma technology,

particles of the gas used, etch themselves

on the material surface in a nano scale.

These particles work towards modifying the

functional properties of the fabrics, hence

creating a new and better product.

Research into the use of plasma technology

on fabrics has presented the textile industry

with the possibilities of a number of modifi ed

fabrics, ranging from shrinkage resistance, to

wetability and printability, among others.

Plasma treatments of textile materials are

used to induce both modifi cations to the

surface of the fabric and to enhance the

overall bulk properties of the material. With

modifi cation, also came an increased demand

for these fabrics, which were not only unique

in nature, but also environment-friendly.

Naturally, the sun is considered to be the

main source of producing plasma. However,

within the textile industry, plasma is created

in a room temperature setting, by exciting

the neutral atoms, molecule ions, atoms

and photons. These are then converted


APPAREL INSIGHTS

to free electrons, initiating the process of

plasma treatment.

Within the textile industry, plasma

treatment on fabrics is induced using diff erent

methodologies that induce the ionisation

of plasma gas. The most common of these

methods are explained in simple terms below:

Glow-discharge method: This method,

used to produce plasma gas at a reduced

pressure, assures the highest possible

uniformity and fl exibility of any plasma

treatment. Use of the glow-discharge

method creates plasma gas with the

application of direct electric current

or low frequency voltage over a series

of electrodes.

Corona discharge method: Plasma

gas, using this method, is produced at

atmospheric pressure by applying a low

frequency or pulsed high voltage over a

pair of electrodes. This method however

is not one of the most preferred ones, as

the small lightning-type discharges of the

corona and high local energy levels make

this particular plasma treatment of textiles

a problematic one.

Dielectric barrier discharge method: This

method produces plasma gas by applying a

pulsed voltage over a pair of electrodes. In

this pair, at least one electrode is covered with

a dielectric material. In comparison to the

corona discharge method, dielectric barrier

discharge method provides the advantage

of improved uniformity in textile and

fabric treatment.

Plasma technology has become a rage in

the textile industry, with research being

conducted in the area, to help produce a

number of synthetic fabrics. It has already

been stated that plasma treatment of fabrics

Plasma

treatment

applied to

grey fabrics

helps make

the process

of removing

impurities

from fabrics

easier. It

also helps

improve the

de-sizing

effi ciency

of cotton.

improves the functionality of these textile

materials. But what exactly are these

improvements that make the use of this

technology such a revolution?

Plasma treatment applied to grey fabrics

helps make the process of removing impurities

from fabrics easier. It also helps improve the

de-sizing effi ciency of cotton.

Dyeing and printing capillarity in wool and

cotton fabrics are improved with the help of

the oxygen plasma treatment method.

Certain plasma treatment methods to add

surface modifi cations to fabrics enhance the

wetability of the textile material.

Plasma treatment on woollen fabrics

creates a better product with anti-felting

eff ects, which does not only improve the feel

of the textile material, but also eliminates

environmental issues. Plasma treatment of

fabrics can also make the textile material

surface more receptive to painting or

adhesion. These fabrics are usually used

in the automobile industry, increasing the

quality of your product. Cellulite based

polymers can be soft ened using an oxygen

plasma treatment method.

Modifi ed and innovative fabrics are an

amazing addition to the textile industry.


Luckily, these are not the only advantages of

using plasma treatment on textile materials.

Here are a few more reasons that make plasma

treatment good for the textile industry:

Plasma treatment can be applied to most

textile materials, especially for surface

treatment, providing the advantage of

continuous innovation and development

with the help of research. In comparison

to many traditional methods, plasma

treatment is an easy and cheap process with

better results.

Plasma treatment of textile materials is

a complete green process that does not

produce chemicals or harmful substances

as a residue. This process therefore is

extremely environment-friendly, helping manufacturers

reduce their carbon footprint. The simplicity of plasma

treatment processes does not require a constant check,

hence making it easy to automate them completely. This not

only provides a perfect parameter control, but also helps in

cost reduction.

India is soon becoming a growing market for textiles treated

with plasma processing. Along with the world, India has also

been conducting research work in the area of plasma textile

processing. The fi rst Atmospheric Pressure Plasma System

for Textiles was developed in the country for the treatment

of Angora wool, in keeping with research work developed

by FCIPT-Institute for Plasma Research (IPR) and National

Institute of Design (NID).

The prototype for modifying the Angora fi bre surface was

successfully established in the Angora Cottage Industry at

Kullu in 2009. Since then, the technology has been licensed

to textile machinery manufacturer, InspirOn Engineering in

Ahmedabd for commercialisation.

In May 2016, IPR and Man Made Textile Research

Association (Mantra) signed an MoU to introduce an in-line

plasma treatment facility in the existing textile manufacturing

process. This agreement is considered to be a big step in the

direction of improving the quality of textile processing.

“IPR’s Plasma treatment facility will be 6-10 times cheaper

than what is available in Europe or US and improve our fi bre

strength and the colour enhancement of textiles,” Mantra

Director V I Bachkaniwala said in a press release.

IPR director D Bora said, “Plasma improves the fi bre quality,

drastically reduces shrinking of fabric and is a clean technology

with no chemicals involved. Plasma will surely provide a major

boost for quality improvement in textile manufacturing. In

case of wool, plasma treatment nearly eliminates the prickly

feel and entanglements of the fi bre.” AL

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APPAREL BRAND PROFILE

SUSTAINABILITY

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There was a time when sustainable and eco friendly fashion

meant wearing hippie like apparel, fl owing garments,

and hemp pyjamas. Fast track to the present, sustainable

fashion is a multi billion dollar business now. Several

leading brands have pledged their support to it. They are

actively working out avenues to promote sustainability.

The range of apparel under this category is becoming

extremely stylish and is also stealing a spot under the trend

radar. It is not diff erent and off beat as it was once thought.

Brands are innovating with organically grown yarns and

are also employing women for production; several brands

are also there, who encourage exchange of their apparel in

a recycle programme to reduce waste. A very interesting

development has been the rise of several well known niche

brands. They command a good market share and are much


sought aft er. They are run by committed

individuals and the brands source their

products from all over the world. We focus on

two brands - People Tree and The Acey from

the UK, one of the countries where awareness

for the environment and sustainability is

very prominent.

People Tree works with Fair Trade

Enterprises, Women’s Groups, and NGOs

to make high quality products. They employ

hand embroidery, hand printing, knitting and

a host of hand skills to create the most beautiful

of apparels. The partner organisations are

based in India, Bangladesh, Africa and Nepal.

Using some of the fi nest of raw materials,

these organisations create beautiful apparel

sold under the People Tree brand tag. The

Acey also works within the same premise. It

can be called a market place where customers

can pick up brands which combine style with

ethics. Most people are aware of eco-friendly

and sustainable concepts but somehow do not

know from where to buy their clothing. The

Acey became a one stop solution for them.

The company has a constant quest for new

and innovative brands, who have built their

stand on integrity. It has been focusing on the

integrity part to pick up partners who ‘do the

right thing and not the easy thing’. It also has

an in-house line.

People Tree – It can be called an old hand

of sorts as it has for the last 25 years partnered

with artisans, farmers, garment workers, and

fair trade producers in the developing world,

to make ethical and eco-fashion apparel and

garments. People Tree can be described as,

“People Tree is an award winning fair trade

fashion company with online, wholesale

and retail operations in Britain and Japan.

We work with 50 fair trade groups in seven

developing countries to produce a stylish

collection that respects people and planet. We

give design and technical assistance to help

marginalised artisans and farmers earn a fair IMA

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price and market their products. We pay our producers a fair

price, technical support and commit to a long term partnership.

We also set best practice in the fashion industry.” The brain

behind, and the founder of People Tree is Safi a Minney. A

social entrepreneur and author from Britain, who has been a

pioneer in sustainable and fair trade fashion.

The brand takes pride in its sustainable roots. The brand

proudly proclaims it is diff erent. It believes in spreading a

diff erent kind of fashion which is long lasting. It can be tagged

as slow fashion. It gives its customers an alternative to fast

fashion. As the website says, “The fast fashion industry is fueled

by insatiable demand for cheap clothing and accessories. Fast

fashion has a devastating impact, from sweatshops and child

labour to pollution and global warming. Slow fashion means

standing up against exploitation, family separation, slum

cities and pollution – all the things that make fast fashion so

successful.” This in anyway do not take away the original beauty

of the designs or the garments. The design sensibility is stated

beautifully as, “We make beautiful garments that are a living

blueprint for our values: people and the planet are central to

everything we do. Our garments are made with organic cotton


and sustainable materials, using traditional

skills that support the rural community.

Most brands do not reveal their source or

who makes the product. In a clear departure

from this norm, People Tree lists proudly the

organisations and the makers of its products.

Some of the organisations it is working with

include, Artisan Hut, Assissi Garments,

Bombolulu, Creative Handicraft s, Dev Tech,

Tara, Sasha, Saidpur Enterprises amongst

others. These organsiations are again known

for their development work and employment

generation activities. Most of the work

done include, hand embroidery, hand block

printing, hand knitting, and weaving.

People Tree developed the fi rst integrated

supply chain for organic cotton from farm to

fi nal product and was the fi rst organisation

to achieve GOTS (Global Organic Textile

Standard) certifi cation on a supply chain

entirely in the developing world. Their range

of products includes jump suits, dresses, and

trousers tops. The fabric used include, organic

cotton, tencel, and modal. What is interesting

is the innovative manner in which these are

manufactured in extremely humble locations.

The Acey - The tag line by the founder says

it all, “I wanted to give women the option to

buy better without compromise on ethics or

aesthetics.” The byline is ‘style with purpose’.

The company works with brands and tells the

story of these brands. The company is very

particular about the brands it partners with

ensuring that they stand for the same ethos

and values that The Acey stands for. The

company’s website puts it all as, “The Acey is

a virtual place for real women to discover and

purchase contemporary clothing, consciously

created. We work with brands that embody

two simple qualities: integrity and innovation.”

The company defi nes innovation as those,

“brands which strive for ingenuity both in

terms of fashion and ethical business practice.”

It further defi nes integrity as, “brands that are

conscious of their outlay on the environment

throughout the production chain.” It is

companies which care about the people behind

Most brands

do not

reveal their

source or

who makes

the product.

In a clear

departure

from this

norm, Peo-

ple Tree lists

proudly the

organisa-

tions and the

makers of

its products.

their products. The companies which insist on

fair trade, on fair labour practices and encourage

social entrepreneurship.

The company has a very interesting story about

its beginnings. Holly Allenby when working for

leading social enterprise TOMS realised that

there was a need of a platform for those who were

looking for fashion, apparel and clothing which

combined ethics and aesthetics. The clothes were

trendy and fashionable yet they were ethical, fair

trade and worked at sustainability. She realised

that people needed a, “go-to-destination for

clothing which combined both ethics and

aesthetics.” As the company’s website puts it, “We

celebrate brands doing business better, whether

they are working towards reducing their social or

environmental impact. No compromise.”

Taking a huge step forward, the company even

worked out an option to reduce carbon footprint

by having a CO2 neutral delivery or even picking

up the products themselves from the studio.

This as the website puts it, “further reducing

our carbon footprint as many take public transit,

walk, or cycle to claim their orders. All orders

are carefully packed by hand in our studio with

recycled tissue and stationery. We now have

Acey Women in over 30 countries.”

The Acey has also launched its own in-house

line. The thought behind the same as the brand

describes it is, “When we decided to create

our own collection for The Acey, we knew we

wanted to be as transparent as possible. Each step

in the design process involves making choices

not only about colour and shape, but also about

ethical and environmental considerations when it

comes to production practices and materials. We

also knew we’d be learning along the way and

want to share some fabric lessons.”

The fi rst collection for the brand uses

linen and tencel. It has been designed at their

East London studio. It uses 100 per cent

linen and 100 per cent tencel fabrics. The

contrast in textures of both helps in working

silhouettes diff erently.

The world of eco-friendly, sustainable brands

are just growing and the same do seem to have a

potential in days to come.


APPAREL TRADE TALK


APPAREL TRADE TALK

Apparel exports are set to reach US$20 billion

in 2017-18, 13 per cent higher than a year

ago, on policy support from the government

and a sharp increase in orders from the US,

the EU and West Asia. The government

had also announced a 6,000 crore textile

package last year, which adds to the positive

export growth too. Duty exemptions like,

the refund of state levies also helped the

fabric and apparel manufacturers in India to

compete with the global players. Let’s take a

look at how they are changing the dimensions

of the export curve!

Indian textile and apparel companies are doing

things diff erently, which are contributing to

an upswing in apparel exports. Globe Textiles

is Oeko-Tex certifi ed and all its production

facilities have been set up in an environment-

friendly manner. They have over 20 in-

house designers on board who keep up with

the latest trends in fashion contributing to

the domestic and international markets.

They have also partnered with few external

designers and consultants to ensure that

they remain updated on new techniques

and knowhow. Bhavin Parikh, CEO,

Globe Textiles (India) Ltd. says, “The key

diff erentiator that marked our entry into the

international denim market was that we chose

to go against the tide. We began exporting

denim fabrics to China and Hong Kong at

a time when Chinese imports into India

dominated the scenario. The masterstroke

right at the beginning of what was to become

a long-standing journey, came through years

of research, delving deep into fabric texture

and feel, studying fashion trends and demands

of the market and assessing self-preparedness

to meet client expectations. Between 2008

and 2013, exports dominated the larger pie

of operations”. Being in the industry for the

last 15 years now, starting from a small shirt

trading business, the company has diversifi ed

into trading - yarns, dyed and printed fabrics

and, denim fabric; and manufacturing denim

jeans and bedsheets catering to the domestic

as well as global markets. “Initially when we

entered the business we found there were

too many players in apparel and textiles,

but most of them worked in a traditional

and unorganised manner. We sensed an

opportunity and the potential this held and

built strategies to imbibe a modern and

organised working culture. Right from the

start, we have followed a policy of partnering

with suppliers and buyers to build long-

term business relations which has worked in

our favour.”

Birla Cellulose, the Pulp and Fibre business

of Aditya Birla Group is a global leader in

Man Made Cellulosic Fibres (MMCF) and


a pioneer in India in Viscose Staple Fibre

(VSF). A versatile and easily blend-able fi bre,

VSF is used in apparel, home textiles, and

non-woven applications. It has increasingly

become the fi bre of choice for womenswear

apparel for woven and knits for the attributes

of fl uidity and comfort, leading to fashion.

Liva stands for high quality fabric made using

natural cellulosic fi bres of Aditya Birla Group

delivered through an accredited value chain

for guaranteed performance. Liva imparts

soft ness and comfort to the fabric. “We are

into manufacturing Cellulose Fibres i.e.

Viscose, Spun dyed Viscose, Modal and,

Excel. These are raw materials for the textile

industry which attributes for, absorbency

and comfort in addition to being a natural

raw material. We have a robust team for

value chain management who have created

a forum, called ‘Liva Accredited Partner

Forum’ (LAPF) to support them for the usage

of our fi bre. Some of our key support areas

to our partners in value chain are, design &

development, technical support, vendor

management, marketing and buyer link

support, and market intelligence support,”

says Aseem Doda, VP- Hub Marketing,

Grasim Industries, Birla Cellulose. The Globe

Textiles textile business is divided primarily

into two segments - dyed, printed fabrics

and home textile. “We have partnered with

almost seven to eight, diff erent processing

houses in and around Ahmedabad and

Surat. This has helped us to reduce our lead

times, right from designing to deliverance.

The second is Denim Garments and we are

currently manufacturing 1.80 lakh pieces

per month. In-house manufacturing is

strong with, over 500 machines, more than

800 workers, and the latest machinery and

equipment from leading Japanese company

- Juki. We have a unique set of machinery,

especially tailor-made with an eye on details,

APPAREL TRADE TALK

as per our product requirement. We also work

with engineered fabrics. We do a detailed

analysis on yarns and fabrics, based on which

we propose diff erent possible base qualities to

our buyers,” says Parikh.

With the changing times, customers have

started shift ing their business practices from

traditional methods to a more organised

method. More and more systems are coming

into place and people have started following

international standards. Secondly, social

compliance and fair trade compliances are

becoming a necessity for every business to

grow. Customers have become more quality

conscious, demanding and requiring faster

conversion from design to deliverance. “It

has become diffi cult to maintain exclusivity,

so we have strategies to invent and re-invent

all the time. New products and new ideas

are encouraged rather than opting for a

limited portfolio. We always try and focus on

creating something new, so that our clients

gain from being a fi rst mover,” says Parikh.

“At Birla Cellulose there are continuous

challenges, which are usually resolved by co-

creating solutions for customers. Exclusivity

is maintained by constant innovation, we are

committed to deliver the best of the products.

Also we have invested a lot in building the

brand which also helps us in maintaining the

exclusivity for the consumer,” says Doda.

In a bid to capture new markets textile

companies are innovating. “At Birla Cellulose

we have always had a strong endeavour to

off er something new to our customers by

creating diff erentiation in fi bre, yarn, grey

fabric construction and fi nishing of fabric in

line with consumer demand. All our product

innovations have strong consumer insights

as base. Such that these innovations cater to

specifi c consumer needs. We have recently

launched ‘Liva Sno’ which is an optically

bright fi bre wherein, the consumer will have

a white garment. Even aft er repeated washes

the white tone of the same will not fade. Next

in line are our ‘Anti Microbial’ fi bres which

fall under the functional fi bre category,” says

Doda. Globe Textiles is doing printed and

dyed fabrics for end use in kaft ans, sarongs,


dress materials and shirting for men. Denims

for men, women and kids have been a success

and they are also planning to come up with

their own brand by January next year.

Exports have grown gradually and have been

commendable over the years for business.

“For the last few years, government policies

and technological advancements have also

helped exports holistically. We export dyed

and printed fabrics to Malaysia, Singapore,

Myanmar, South America, and the Gulf.

Denim Jeans are exported to Poland,

Portugal and GCC countries. Bedsheets are

exported to Israel and Germany. As of now

Bangladesh, Pakistan, Cambodia, and

Vietnam are big competitors

to India. Those countries

are preferred countries

to import as compared

to Europe and the US

due to GSP, FTA, and

incentives. This has taken away a large pie

of the business from India. This has also

hindered new businesses from entering India.

India also needs to get into such agreements

to boost exports. Secondly, compliance has

been a major game changer where India

has to work very hard in order to get the

business. Furthermore, government agencies

push exporters to meet standard compliance

requirement,” says Parikh. Viscose has seen

a defi nite growth in exports, with categories

like women tops being one of the highlights.

“One of the key reasons behind this upward

trend is that globally customers are looking

at innovation and quality products and we

are working in close coordination along with

our entire value chain to ensure we meet

these critical demands. We have our seasonal

collections coming out twice a year and these

are made along with WGSN such that they

are in line with the international trends. Add

to it, we are working with the value chain to

take care of issues like, shrinkage and pilling,

etc. Working closely with our LAPF partners

to create a pull for their products from

international markets, has borne fruit even in

these diffi cult times. We are also working on

chemical management with leading process

houses for reducing green house gas impact,”

says Doda. The world is moving towards fast

fashion as well as diff erentiating in functional

performance. Again, due to increased

exposure to the international brands and

markets, the consumer has started demanding

the latest trends and the best quality in the

garments. The industry, recognising this

factor, has left no stone unturned to ensure

they are on the top, when it comes to

delivering to the consumer. This thirst for

excellence is driving exporters to give the

best of their service to their consumers.

Exports

have grown

gradually

and have

been com-

mendable

over the

years for

business.

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AUSTRALIA

BOUND


APPAREL IN FOCUS


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The Union Cabinet, chaired by Prime

Minister Shri Narendra Modi approved a

MoU of cooperation in textiles, clothing

and fashion sectors which has been signed by

Ministry of Textiles and the Department of

Foreign Aff airs and Trade, Australia.

India has had a long trading relation with

Australia, India has been a huge importer

from Australia and exports have kept a

match with it too. In recent times, to

enhance the trade further between the two

countries, signing an FTA with Australia was

considered. A task force was set up to prepare

a feasibility report of the same.

India and Australia, Joint Free Trade

Agreement Feasibility study undertaken by

the Government of both the countries broadly

analyses this as, “Recent years have seen

remarkable growth in the trading relationship

between India and Australia, fuelled by the

many complementarities between the two

economies. Over the past fi ve years, bilateral

trade in goods and services has increased

by 24 per cent annually to US$16 billion

in 2008-09. Two-way investment is also

signifi cant, estimated at over US$1.5 billion

including portfolio investment in 2008.”

As per the report, Australia’s wool exports

to India have also played an important role as

an input to India’s exports. India is Australia’s

third largest export market for wool. India

sources 50 per cent of its wool imports from

Australia. The wool is made into clothing,

which is exported to countries all over the

world including Australia. However, the

quantity of imports of textiles, clothing

and footwear is a very minuscule amount -

less than fi ve per cent of the total imports

by Australia of these three categories. As

way back in 2008-09, textiles and garments

accounted for 14 per cent of the total exports

to Australia. This has however declined over

the years. As the report puts it, “in 2000-

01, textiles and garments constituted 40

per cent of India’s manufacturing exports

to Australia, but declined to 22 per cent in

2006-07.” It further adds, “In the recent

years the percentage of textiles and garments

from India as a proportion of Australia’s total

merchandise imports has fallen. In 2008

Australia’s imports of TCF products from

India were valued at approximately US$241

million, or three per cent of Australia’s total

imports of TCF products.”

The numbers are worrisome but it also

presents an opportunity, a market relatively

untapped by the industry. Textile and garment

exporters have been urging the Government


to sign an FTA so that the exporters can

take advantage of the conditions and

improve exports.

The aim of the MoU is to facilitate cooperation

in relation to matters within the textile

and fashion sector which will be of mutual

interest and benefi t to the participants. As

the details given out reads, “The participants

will jointly identify appropriate measures to

connect the Australian and Indian textile

and fashion sectors; promote collaboration

and international engagement between

those sectors; nurture the skills and talents

within those sectors; promote economic

opportunities and encourage professional

engagement, training, skill development and

public exhibition of products derived from

these sectors in the two countries. However,

Intellectual Property Rights of either side

will stand protected.”

The Handloom Industry comes in for

special focus. The biggest benefi ciary will be

the weavers including ancillary workers who


APPAREL IN FOCUS

will benefi t from these activities. Specifi c

to the handloom sector, the measures

which will benefi t it will include, “Overall

development of the handloom sector, the

initiative aims to increase the handloom

fabric production by way of establishing

market linkages, to encourage innovation in

designs and techniques for improvement in

design capability, diversifi cation of product

lines and value addition, better access to

domestic and export markets so that weavers

are able to get continuous employment and

improve their living standards.”

Ministry of Textiles has spelt out its

functioning as, “responsible for holistic

development of this sector by implementing

various innovations in handloom sector. It

has been an endeavour of the Ministry to

popularise the handloom products among

the younger generation. The Australian

fashion designers, producing garments using

India made woven and other textiles for the

Indian and Australian market have evinced

interest to work with stakeholders in India

which includes, cooperation with textiles,

handloom sector with a view to provide state

of the art designing of textiles and handloom

products and market them in India as well as

the international markets. The Department

of Foreign Aff airs & Trade (Government of

Australia) had proposed to sign an MoU with

Ministry of Textiles in this regard.”

The ‘Grown in Australia, Made in India’

initiative launched by The Woolmark

Company aims to promote the farm to

fashion journey of Merino wool. Where the

Merino wool, bred in Australia is converted

into unique fashion pieces in India. It also

gives credence and honours to the traditional

artistic craft smanship of India. Keeping

in mind the idea of eco-friendliness and


sustainability, wool is positioned as a natural,

renewable and biodegradable fi bre. This also

means collaborating with local weaver groups

and clusters. The fi rst collection designed by

Rajesh Pratap Singh in collaboration with

Bhuttico weavers of Kullu was the hallmark of

the fi rst phase. The Woolmark Company has

already collaborated with Tirupur Exporter’s

Association. As one of the sources closer to

the development mentions, “The 26,000

crore Tirupur apparel industry is heavily

dependent on cotton. However, last year the

industry association started a workshop on

use of Merino wool for knitwear. As on date,

already seven companies here have begun

manufacturing knitwear using wool,” said

R M Shanmugham, TEA president, while

refusing to divulge wool-based knitwear

production details of the industry.

There is a second phase of the ‘Grown

in Australia, Made in India’ initiative. The

campaign aims to further connect brands,

manufacturers and the Government of India

across the wool supply chain. So this year will

also the consumers too will be allowed to join

the journey.

An eight member Australia delegation

from Australian Cotton Shippers Association

visited India to meet the representatives of the

spinning mills and the textile manufacturers

across the country. They hosted seminars in

Ludhiana, Mumbai and Coimbatore and made

the participants aware of the Australian cotton

and its properties. As queenslandcountrylife.com.au puts it, “The delegation visited India

to bolster opportunities for exporting high

quality Australian cotton to India. India has

been a consistent purchaser of our cotton

year-on-year, but last year’s monsoonal

conditions and the resulting smaller Indian

crop provided an opportunity for increased

usage of Australian cotton by Indian mills.”

At various interactions and seminars,

the Indian mills were made aware of the

properties, advantages of the cotton and its

supplies, etc. As queenslandcountrylife.com.au puts it, “Australian cotton was well

received by Indian mills and appreciated

for its superior and consistent quality and

zero contamination. Key deliverables shared

with Indian spinners were that Australian

cotton is contamination-free and can be

delivered to India within 30 days aft er a

dispatch from Australia. They were also

informed that Australia can off er quality

cottons ranging from Strict Middling

1-1/4” with premium micronaire through

to Strict Middling 1-5/32” at a competitive

price and importantly, Australian cotton

is readily available to Indian mills for June-

August spinning requirements to supplement

domestic shortages.”

The process of working in collaboration

has begun; how India will take advantage of

the situation, in being able to sell fi nished

products back to Australia will be seen in the

days to come. AL

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APPAREL AEPC EVENTS CALENDARThe proposed Apparel Export Promotion Council Events – 2017-2018

Hong Kong Fashion Week, Hong Kong

January 15-18, 2018

5

September 27-28, 2017

January 17-19, 2018

India Trend Fair (ITF), Tokyo, Japan

60th India International Garment Fair, New Delhi, India

1

6 7

Sept/Oct, 2017

2

BSM at Madrid, Madrid, Spain

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November 14-16, 2017

3Australia International Sourcing Fair, Sydney, Australia,

through FIEO

WGSN Fashion Forecast Seminars(Spring/Summer and

Autumn/Winter)

November 2017 (4 cities)March 2018 (4 cities)4

Magic Fair,Las Vegas, Nevada,

USA

February 2018

RNI No. HARENG/2012/45083Postal Regn. No. GRG/37/2014-2017

india india_sept17... · mr ashok g rajani chairman - ep mr anil buchasia executive committee...

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