07 August 2023, Mumbai

Operating leverage

Vardhman Textiles Ltd, a key player in the textile industry and part of the Vardhman Group, faced a significant decline in Q1 net profit, plummeting by 58% to Rs 136 crore ($17 million) compared to the previous year's quarter.

The April-June quarter also saw an 18% decrease in revenue from operations, down to Rs 2,318 crore.

Despite its premium shirt production for retail giants like Van Heusen, Benetton, Sisley, and Colorplus, the company encountered a challenging financial period.

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25 July 2023, Mumbai

Indian Minister of Textiles, Commerce, and Industry, Piyush Goyal, recently spearheaded a strategic discussion at the Chintan Shivir event, outlining a visionary roadmap to propel India's textile sector to new heights.

Aspirational

The ambitious goal is to achieve $250 billion in textile production and $100 billion in exports by 2030. The event, organized by the Ministry of Textiles on July 18, 2023, brought together officers from all over the country to brainstorm innovative ideas and address the challenges faced by the industry.

An integrated approach is the need of the day

Goyal emphasized the need for an integrated approach, institutional reforms, and out-of-the-box thinking to enhance global competitiveness.

The discussions revolved around five crucial themes: boosting exports, increasing investments, scaling up operations, ensuring sustainability, and transitioning from natural to man-made fibers.

MoT

The event also saw Union Minister of State for Textiles, Darshana Jardosh, stressing the vital role of the textile industry in India's economic growth and calling for collective efforts to nurture growth in all segments of the value chain.

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04 August 2023, Mumbai

The spinning industry in Ludhiana, a major employment generator in the city, is currently facing a significant crisis due to duty and tax irregularities.

According to Gagan Khanna, the chairman of Arisudana Spinning Mills Limited, the inverted duty structure on MMF (Man-Made Fibre) chain is causing a major issue.

Industry leaders seek removal of import duty

Raw materials like viscose and polyester staple fibre are taxed at 18%, while the yarn is taxed at 12%. This disparity results in a considerable accumulation of GST refunds, leading to a blockage of working capital, an inability to take GST credit on capital goods, and a time-consuming and cumbersome process for obtaining refunds.

Trade pacts

Khanna also pointed out that polyester staple fibre is not covered under the ASEAN FTA (Free Trade Agreement), whereas polyester spun yarn is included.

This lack of inclusion leaves domestic producers with no chance to compete with finished goods in the market.

Kamal Oswal, the vice-chairman of Nahar Group, highlighted the negative impact of the 11% import duty on raw cotton, which was imposed in October 2021. This duty has rendered the entire Indian cotton spinning industry unviable.

Level playing ground

Domestic prices have been on average 10% higher than ICE future prices since the introduction of this duty, resulting in a significant decline in exports, the closure of spinning mills, and a substantial loss of employment and export revenue.

In response to these challenges, the industry leaders have approached Rajya Sabha MP from Ludhiana, Sanjeev Arora, seeking his support in addressing their concerns with the government.

They hope that he can help find solutions to sustain the existing industry and attract fresh investment in the textile sector.

Call to action (CTA)

The industry leaders are urging the government to take specific actions, including removing the 11% import duty on raw cotton, including polyester staple fibre in the ASEAN FTA, and implementing the BIS (Bureau of Indian Standards) standard on polyester spun yarn.

They firmly believe that these measures will revitalize the spinning industry in Ludhiana, create more jobs, and drive economic growth in the region.

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29 July 2023, Mumbai

Arvind Mills reported a consolidated net profit of 658.7 million rupees ($8.04 million) for the quarter ending June 30, down from 984.2 million rupees the previous year.

Soft global textiles demand impact

The decline was primarily attributed to the struggling denim segment, which experienced a 39% drop in revenue due to low price realizations. While expenses reduced by 20.6%, analysts remained cautious about the global textiles demand outlook for the current year.

Optimistic outlook

Arvind remained optimistic about future improvements, aiming to enhance capacities, and sustainability initiatives, and reduce long-term debt.

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22 July 2023, Mumbai

A closer look

The 12th edition of the India Tex Trends Fair took place in Tokyo on July 19, 2023, with Mr. Sibi George, the Indian Ambassador to Japan, gracing the occasion.

The event featured a captivating seminar, 'Textile Industry in India-Collaborative Opportunities,' held on July 20. Dignitaries and representatives from leading brands and retail chains, including Chairman AEPC Mr. Naren Goenka, Vice Chairman AEPC Mr. Sudhir Sekhri, and Chairman F&E Mr. Ashok Rajani, participated enthusiastically.

Boosting India-Japan Collaboration

Ambassador George expressed his delight at the event's organization, a joint effort of the Apparel Export Promotion Council of India and the Japan-India Industry Promotion Association.

This occasion showcased India's finest apparel and textiles while emphasizing the deep-rooted partnership between India and Japan, spanning various areas like trade, investment, technology, and defense.

India's Flourishing Textile Industry

Ambassador George shed light on India's booming textiles and apparel industry, which witnessed exports worth over USD 35.5 billion last year. This thriving industry mirrors India's cultural heritage, technological prowess, and skilled workforce.

Expanding Textile Exports to Japan

Highlighting the untapped potential for expanding textile exports to Japan, Ambassador George mentioned the active cooperation between both governments. A recent Memorandum of Understanding between Japan's Nissenken Quality Evaluation Centre and India's Textiles Committee aims to enhance quality compliance for Japanese buyers.

Investment Opportunities for Japan

The Indian government's Production Linked Incentive Scheme and 11 exclusive Japan Industrial Townships offer attractive opportunities for Japanese investments in India's textile sector.

Promoting Collaboration and Confidence

During the seminar, Dr. Tamanna Chatuurvedi, Deputy Secretary General of the Apparel Export Promotion Council, presented several recommendations, including fostering collaboration between Indian and Japanese designers, exploring opportunities in Japan's uniform market, and establishing QC labs in India to gain the confidence of Japanese buyers.

A Dedicated India Desk in Japan

Ambassador George concluded by proposing the establishment of a dedicated India Desk in Japan, aimed at facilitating sourcing from India and further strengthening the bilateral ties between the two nations.

This initiative is set to herald a new era of collaboration and growth in the textile industry for India and Japan.

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03 August 2023, Mumbai

Show Highlights:

Event Name:                 TECHTEXTIL- Germany

Dates                           : 23^rd-26^th April 2024

Venue:                         Frankfurt / Main, Germany

Organizers:                  Messe Frankfurt Exhibition GmbH.

Product Profiles: 

Fiber & Yarns, coated textiles, composites, Bond-Tec (surface and bonding techniques) Woven Fabrics, Knitted Fabrics, Textile materials: Functional apparel textiles, wovens, nonwovens, laid webs, braidings, knitted fabrics, technology, processes, accessories, Textile materials: Wovens, nonwovens, laid webs.

Role & responsibility

The government of India has assigned the role of export promotion of technical textiles to SRTEPC, the Synthetic & Rayon Textiles Export Promotion Council.

SRTEPC will be responsible for promoting the export of technical textiles from India, which are used in a variety of industries, including automotive, construction, and healthcare.

SRTEPC has decided to participate at TECHTEXTIL Frankfurt in Germany, a major trade fair for technical textiles. The fair will be held from 23rd-26th April 2024.

SRTEPC will be organizing a delegation of Indian companies to participate in the fair. The delegation will be supported by the Ministries of Textiles and Commerce & Industry under the MAI Scheme of the Govt. of India for the year 2024-25.

Technical textiles get a boost

The participation of SRTEPC at TECHTEXTIL Frankfurt is a significant step in the promotion of technical textiles from India.

The fair is expected to attract buyers from around the world, and SRTEPC's participation will give Indian companies a chance to showcase their products to a global audience.

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27 July 2023, Mumbai

South India's largest ‘B2B Expo’

The event, spanning three days till July 26, was inaugurated by esteemed Ministers R. Gandhi and S. Muthusamy, alongside MLAs E.V.K.S. Elangovan and A.G. Venkatachalam.

As the biggest B2B expo in South India, this showcase arrives just ahead of the festive season and Deepavali, attracting textile manufacturers and traders from various states.

Showcase of ‘Fashion & Trends’

With over 200 stalls displaying diverse fabrics, fashion, and cutting-edge trends, the event is a magnet for buyers, wholesalers, agents, and merchandisers. Notably, 150 associations have enthusiastically participated, making it a truly comprehensive and must-attend affair.

Must-visit event

The extravaganza will culminate with an enthralling fashion show on Tuesday, promising a delightful experience for all attendees.

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Alok Industries Limited, a prominent player in the industry, has disclosed its consolidated financial results for the quarter ended June 30, 2023.

The company reported a total income of Rs. 1415.66 crores for Q1 FY2024, indicating a decrease from Rs. 1569.72 crores in the previous quarter, a decline of 9.81%.

Amid challenging macro-economics

Despite challenging times, Alok Industries has shown some improvement in its performance as its net loss narrowed to Rs. -226.14 crores in Q1 FY2024, compared to Rs. -297.55 crores in Q4 FY2023, a reduction of 24.00%.

Y-o-Y

On a year-on-year basis, the company's total income declined by 28.93% from Rs. 1992.02 crores in Q1 FY2023 to Rs. 1415.66 crores in Q1 FY2024. However, the net loss increased by 59.73%, from Rs. -141.58 crores to Rs. -226.14 crores.

Share track

Alok Industries' stock traded at Rs. 16.02 on the BSE, with a total turnover of Rs. 18,65,35,270 and 1,170,176 shares traded during the day.

25 July 2023, Mumbai

Trident Limited has been granted a significant patent titled "Process of manufacturing a fabric with homogeneous pores" by the European Patent Office.

The patented manufacturing process

This pioneering invention involves the production of Air Rich yarn and fabric with pores distributed evenly throughout the cross-section, resulting in Air Rich towels and fabrics with exceptional qualities.

The novel fabric exhibits high wettability, quick absorbency, and easy dryability, and offers improved insulation by restricting the easy transmission of body heat through the fabric.

With this groundbreaking patent, Trident aims to deliver its innovative Air Rich towels, which outperform traditional fabrics in terms of water absorption and quick drying, to the global market.

Setting a new standard

The towels boast the unique ability to bloom after each wash, retaining their freshness and appearance even after numerous uses. The European Patent Office's recognition of this innovation reaffirms Trident's commitment to producing high-quality, cutting-edge products.

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20 July 2023, Mumbai

Indian Textile Market Skyrockets; Prominent market research firm, IMARC Group, has recently released a report titled "Indian Textile and Apparel Market: Industry Trends, Share, Size, Growth, Opportunity, and Forecast 2023-2028."

The report reveals that the Indian textile and apparel market achieved a significant milestone, reaching US$ 172.3 Billion in 2022.

Exciting projections indicate a remarkable growth trajectory, with the market expected to soar to US$ 387.3 Billion by 2028, reflecting an impressive Compound Annual Growth Rate (CAGR) of 14.59% during 2023-2028.

Market Overview:

The Indian textile sector presents a diverse range of materials, encompassing both natural and synthetic fibers, while apparel offers an extensive selection of products such as shirts, pants, dresses, skirts, jackets, hats, shoes, and more, tailored for personal wear.

Expert weavers skillfully utilize various materials like cotton, leather, satin, lace, linen, chiffon, silk, crepe, denim, or blends, enhancing the appeal with intricate embroideries and embellishments.

The manufacturing process involves handlooms or electricity-powered power looms, often accompanied by chemical or polymer coatings to ensure enhanced durability and aesthetics.

Key Trends:

The Indian market experiences a surge in response to consumer preference for affordable and trendy fast fashion. Luxury brands also contribute significantly by incorporating premium fabrics like silk and leather into their footwear, clothing, and accessories. The export of silk, jute, and cotton materials further bolsters the market outlook.

Additionally, the online presence of e-commerce brands offering budget-friendly clothing options plays a pivotal role in driving market growth. Government initiatives, including A-TUFS, Power-Tex, and SITP, are actively fortifying the textile industry and paving the way for future growth.

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