02 December 2021,  Mumbai:

Out of 56 textile parks approved/sanctioned by the government, 24 have been built according to plan requirements, with a total of 1,757 units operating and about Rs. 12,470 crore in investment mobilized - producing 95,644 employment to date.

Darshana Jardosh, Minister of State for Textiles, provided this information in a written reply to the Lok Sabha.

The SITP, which is being implemented by the Indian government, provides support for the development of world-class infrastructural facilities for the establishment of textile plants.

Notably, the government funding of up to Rs. 40 crore each park is paid out in installments, depending on how far infrastructure and common facilities have progressed.

The government has approved the establishment of seven PM Mega Integrated Textile Region and Apparel (PM MITRA) Parks in Greenfield/Brownfield sites, including plug and play facilities, with an outlay of Rs. 4,445 crore for a period of seven years up to 2027-28 to attract investment, boost employment generation and position itself strongly in the global textile market.

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02 December 2021,  Mumbai:

PV dyed yarn and seamless apparel producer Sangam India NSE 4.98 % Ltd (SIL) on Thursday announced a Rs 137.25-crore plan for the expansion of its manufacturing facility.

This expansion plan, approved by the board of directors, will witness infrastructure development at SIL's manufacturing facility in Bhilwara, Rajasthan, the company said in a statement.

The total cost of the expansion project is funded partly by term loans of Rs 102 crores and balance Rs. 35.25 crore by internal accruals.

The move is aimed at increasing the capacity of their cotton yarn business by 47 per cent and knitted fabric business by 28 per cent.

ET  (The news article has not been edited by DFU Publications staff)

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DAILY NEWS:

1. Flipkart, an Indian e-commerce company, collaborates with PUMA on the ‘1DER' line, which features batsman KL Rahul
2. Consumers will determine growth of sustainable fashion e-comm in India
3. Myntra to offer 1 mn styles from about 7,000 brands at the 'Big Fashion Festival'
4. Maharashtra government honors VIP as 'Best Innerwear Brand' for 2021-22
5. Nike strengthens retail presences with new store at DLF Mall of India,Noida

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01 December 2021,  Mumbai:

Following a High Court order to close all units releasing water effluent in the sewage pipes of Ahmedabad Municipal Corporation, the effluent discharge connections of roughly 141 units, including the company's Ankur facility, were removed (AMC).

Although the corporation stated that attempts are being taken to restore normalcy, it added that "given the unpredictability of the situation, it is impossible to assess the impact on production/operations at this time."

Arvind Ltd., the world's largest textile and clothing company, has filed a lawsuit in the High Court to prevent the closure, with the next hearing scheduled for December 31, 2021.

In a regulatory filing, the business started, "Ankur plant has essential licenses from relevant authorities to release treated industrial effluent." In 2020-21, the unit, which produces voiles and other fabrics for the domestic market, generated sales of Rs. 232 crore and EBITDA (profits before interest, taxes, depreciation, and amortization) of Rs. 28 crores.

In this respect, Mihir Thakore, a senior lawyer for Arvind Limited, asked the division bench to circulate the case, citing the fact that the disconnection has resulted in the layoff of 1,200 workers at the industrial plant.

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DAILY NEWS:

1. Flipkart, an Indian e-commerce company, collaborates with PUMA on the ‘1DER' line, which features batsman KL Rahul
2. Consumers will determine growth of sustainable fashion e-comm in India
3. Myntra to offer 1 mn styles from about 7,000 brands at the 'Big Fashion Festival'
4. Maharashtra government honors VIP as 'Best Innerwear Brand' for 2021-22
5. Nike strengthens retail presences with new store at DLF Mall of India,Noida

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04 December 2021,  Mumbai:

Aim is to ensure beneficiaries don’t miss out on incentives owing to genuine delays.

The Textile Ministry is considering the option of providing certain flexibilities to investors under the ₹10,683-crore production linked incentive (PLI) scheme for the man-made fibre (MMF) and technical textiles sectors to help them meet the strict timelines for achieving the mandatory prescribed minimum annual turnover.

The idea is to ensure that the industry does not miss out on incentives due to genuine problems

Business Line (The news article has not been edited by DFU Publications staff)

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2. Consumers will determine growth of sustainable fashion e-comm in India
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02 December 2021,  Mumbai:

Textiles and apparels major Arvind NSE 0.77 % Ltd on Tuesday said the effluent discharge connection of its Ankur unit in Ahmedabad has been disconnected following a Gujarat High Court order.

The effluent discharge connections of about 141 units, including that of the Ankur unit of the company, were disconnected, following the High Court order to close all the units discharging water effluent in the sewage lines of Ahmedabad Municipal Corporation (AMC), Arvind Ltd said in a regulatory filing.

The company has filed a petition in the High Court against such closure and the next hearing is likely to take place on December 3, 2021, it added.

"Ankur unit has requisite approvals from relevant authorities to discharge treated industrial effluent," the company said.

ET (The news article has not been edited by DFU Publications staff)

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DAILY NEWS:

1. Flipkart, an Indian e-commerce company, collaborates with PUMA on the ‘1DER' line, which features batsman KL Rahul
2. Consumers will determine growth of sustainable fashion e-comm in India
3. Myntra to offer 1 mn styles from about 7,000 brands at the 'Big Fashion Festival'
4. Maharashtra government honors VIP as 'Best Innerwear Brand' for 2021-22
5. Nike strengthens retail presences with new store at DLF Mall of India,Noida

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02 December 2021,  Mumbai:

RSWM, one of India’s largest manufacturers and exporters of synthetic and blended spun yarn, is investing close to ₹350 crore across four plants, covering its prime verticals of denim and yarns.

Around ₹300 crore of the proposed investments are being made this fiscal and 80 per cent of it will be financed through bank loans. The remaining is via internal accrual.

According to Brij Mohan Sharma, Joint Managing Director, RSWM, the capex will be fully operational by FY23. Investments are expected to have a positive impact on the top-line by around ₹575 crore.

Capacity expansion

The additions to RSWM’s denim-making facility at Rajasthan have already been brought on-stream in September, thereby adding around 7,00,000 metre per month to its already existing 21,00,000 metre per month capacity.

Setting up of an additional 18,000 cotton spindles for the captive use in denim-making and another 30,000 spindles for speciality cotton mélange yarn manufacturing – both in Rajasthan – are expected to be complete around January 2022 and around April 2022, respectively.

Expansion of knitting plant

Part of the capex goes towards expansion of RSWM’s knits plant (also in Rajasthan) to 420 tonnes per month that will cater to the current demand for athleisure apparels.

RSWM’s capacity at present is 300 tonne per month. Plans are afoot to increase it to 1,000 tonnes over the next 18-24 months keeping in mind the rising demand for athleisure offerings. The segment has seen a nearly 30 per cent growth with branded apparel players expanding their portfolio in categories like track pants, active-wear and so on.

“Talks are on to look at underwriting a part of the investment in the vertical by international players,” Sharma said. Earlier this year, RSWM sold off the Mayur Fabrics and PV Suiting Global distribution network to Donear Group.

Positive sentiments

For H1 FY22, RSWM reported a PAT of ₹80 crore. It had reported a loss of ₹83 crore in the year-ago-period. Turnover for the first half of FY22 stood at ₹1,695 crore.

Also see: Industry body PHDCCI pitches for lowering of GST on textiles

“We continue to see the rallying effect of the positive sentiments and market recovery on the business in FY22. The yarn business witnessed a sudden surge in demand in H2 FY21 and the order book is well placed till mid of February 2022. With ease in restrictions, the denim business is witnessing better demand and traction,” Sharma told BusinessLine.

According to Sharma, order books are to the tune of ₹250 crore a month, going by the current run rates, for the months beginning October to January. This means RSWM will be using up its full capacity for these months.

Limited Omicron impact

Nearly 30 per cent of RSWM’s total sales volume comes from exports across 78-odd nations. However, international operations and exports are yet to see an impact from the emerging Omicron Covid variant.

“I can tell you the first wave of Covid infections were the worst in terms of effect on business. The second wave did not have that severe an impact on businesses. But, it is is still early to comment on Omicron and its impact on businesses. But as of now the impact is nil. We need to watch out,” Sharma added.

Debt reduction

RSWM is also looking at a debt reduction to the tune of ₹200 crore for FY22. RSWM long-term debts are to the tune of ₹450 crore which, according to Sharma, is “the lowest in the last 10 years”.

Also see: Domestic garment industry slowly limping back to normalcy

Working capital requirements are around ₹350 crore and “nearly ₹150 crore worth of drawing power from banks” remain unutilised.

“We are looking at pre-payment of long-term loans which will help us in reducing finance costs. Moreover, we do not see any significant impact on our debt-equity ratio, despite the capex. Our liquidity is also improving,” Sharma said.

BUSINESS LINE (The news article has not been edited by DFU Publications staff)

Dear Reader, we at DFU Publications are committed to providing the latest news updates on trade development and insights, to keep our readers informed. Stay tuned. Subscribe to our newsletter.

DAILY NEWS:

1. Flipkart, an Indian e-commerce company, collaborates with PUMA on the ‘1DER' line, which features batsman KL Rahul
2. Consumers will determine growth of sustainable fashion e-comm in India
3. Myntra to offer 1 mn styles from about 7,000 brands at the 'Big Fashion Festival'
4. Maharashtra government honors VIP as 'Best Innerwear Brand' for 2021-22
5. Nike strengthens retail presences with new store at DLF Mall of India,Noida

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30th November 2021, Mumbai:

Indian exporters from labour-intensive sectors like textiles and leather industry are extremely keen on the restoration of trade benefits worth $6 billion under the US’ Generalized System of Preferences (GSP).

Their pitch comes after Commerce and Industry Minister Piyush Goyal made a renewed push for the restoration of these benefits, which were withdrawn in June 2019 by the Donald Trump administration, at the revived India-US Trade Policy Forum (TPF) with US Trade Representative Katherine Tai last week.

According to exporters from these sectors, the GSP scheme was withdrawn ‘prematurely’. The exporters said that while the withdrawal hadn’t been too debilitating and didn’t much affect the bilateral trade, a restoration would set some sectors on a better footing.

Goyal batted for the restoration of trade benefits under GSP in light of the fact that the Joe Biden administration has made it clear that it won’t go for a preferential trade arrangement under a limited deal with India at this point. The former Donald Trump administration had discussed a mini-trade deal and these issues were expected to be ironed out under that.

While in the past Goyal had said that lack of preferential trade with the US would not have a “significant impact” for a country of India’s size and strength, his push at the latest round of the TPF came as a surprise for those exporters who used to benefit vastly from these privileges.

Established under the US Trade Act of 1974, GSP currently benefits around 119 countries through preferential duty-free treatment. India used to receive benefits worth $6 billion on 2,167 products before it was removed from the preferential list.

MK Stalin, the Chief Minister of Tamil Nadu, has now pressed the Union Textiles Minister on the issue. In a letter to Piyush Goyal, he stated that the current crisis has resulted in a large number of export orders being canceled and difficulties in meeting long-term export obligations.

"If this scenario does not improve, a considerable number of garment and home textile units may become unprofitable in the near future, resulting in closure and widespread unemployment and industrial discontent."

According to my understanding, one of the main causes of cotton price volatility is the imposition of a 5% Basic Customs Duty (BCD), a 5% Agriculture Infrastructure Development Cess (AIDC), and a 10% Social Welfare Cess on these components in the Union Budget 2021-22, resulting in overall import duty of 11%.

Another factor driving up cotton prices is the Cotton Corporation of India's (CCI) bulk discount to traders who "purchased nearly 70% of MSP cotton auctioned by CCI at a lower rate during the cotton season due to the availability of a 90-day free period and thereafter speculated the market," according to the letter. He asked the Textiles Minister to instruct the relevant ministries to act and adopt policy measures to correct the situation, defend the textile sector, and avoid job losses.

To avoid more speculation in the future months, he advocated the abolition of the 11% import tariff on cotton, as well as a rethink of the CCI's commercial terms and conditions for e-auction of cotton by lowering the minimum lot size to 500 bales, which is sustainable for MSMEs.

Furthermore, yarn makers may be granted preference over dealers in the acquisition of cotton. The CM also advocated the extension of a 5% interest subsidy to spinning mills for cotton procurement during peak season (December to March).

THE NEWS MOTION (The news article has not been edited by DFU Publications staff)

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DAILY NEWS:

1. Flipkart, an Indian e-commerce company, collaborates with PUMA on the ‘1DER' line, which features batsman KL Rahul
2. Consumers will determine growth of sustainable fashion e-comm in India
3. Myntra to offer 1 mn styles from about 7,000 brands at the 'Big Fashion Festival'
4. Maharashtra government honors VIP as 'Best Innerwear Brand' for 2021-22
5. Nike strengthens retail presences with new store at DLF Mall of India,Noida

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