AO-DECEMBER-1-15-11.pdf - Apparel Resources

2 ApparelOnline december 1-15, 2011

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vol. XIv Issue 17

Contents December 1-15, 2011

12. ExportAwards The Industry Pioneers...

Pulkit Seth

N Chandran

Gautam Chakravarti

Sudhir Dhingra

Naresh Kumar

Rakshit Poddar

Harkishon Udani

Ashish Grover

30. WorldWrap Fans Keep Footfalls Moving

United ‘SILOS’, the channel to success for Retailers

34. Sustainability Focus on ‘ORGANIC’ at BioFach India 2011, Bangalore

36. IndustryWire Scotts Garments; Apex International; Mybra Lingerie; Jhoole

43. Trends2012 Six Global Themes to inspire trends in Autumn/Winter 2012-13

46. FashionBusiness First Ever LONDON EXPO Buyers Looking for Reliable Partners with Quality Product

52. TextileUpdate Firm up Cotton Policy says Industry

56. H2F Pardesh adds China in its Buyer’s List Growing at 25-30% YoY

58. ExportStatistics EU Import Analysis – Jan.-July 2011 Imports of Apparel into EU continues to Boost with 14.39% Growth in Value and 7.42% Rise in Volumes

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Nidhi Dua, Country Manager, French

Connection, gurgaon The solution

does not lie in technology alone, skill upgrade

is equally critical. A good quality product

that meets design aesthetic, on-time delivery

and competitive pricing should be the main

focus of the companies. The balance between

technology and giving a full package solution is

the key to getting an edge in the industry.

Freddy Rohinton Sanjana, ex-Strategic

Business Development Manager, Steve

& Barry’s university Sportswear, Dubai In

this time of wait and watch situation, it is very

important to be united with our suppliers and

to understand the strength of each individual.

With orders slowing down, what should be the strategy for the industry… Invest in strengthening the company both in terms of technology and manpower OR Keep a low profile and wait for the storm to pass by?

Investments in the terms of technology,

manpower, and introduction of systems would

play an important role. As of date specialization

is the trend we should try to master, rather than

running around after everything and depriving

the person who has the masters in a particular

field. There is a need to keep figure work very

clear and set up targets with reconciliation’s to

judge the performance.

Rajiv Rai Sachdev, CMD, Advantage Organic

Naturals Technologies, New Delhi One

should invest in strengthening the company

both in terms of technology and manpower,

supremacy in technology always pays and the

manpower has to be in complete synergy with

the technological upgradations. The times are

changing so are the needs and desires, the

present becomes past over a period of time

therefore a company needs a continuous R&D

setup. Even in slow times business does come in

and then the decision on which company gets

the orders is dependent on the best prepared

company, both in terms of infrastructure and

manpower management, so one cannot take

the situation lightly and just wait for it to

pass. These slowdowns/recessions will come

and go without deterring the growth of a

technologically advanced company.

Mitul Suchde, Marketing Director, Shilpa

global, Mumbai From a broader

perspective, if China just increases their share in

the world market by 5 per cent and by the same

token, Bangladesh by 10 per cent, garment

exports from India, which is 3 per cent currently,

will be completely out of the picture. Different

fabrics, market and cost/production efficiency

is the need of the hour. India lacks in a variety of

blends, which have more than 2-3 yarns. As of

Q u e s t i o n

MIndtRee

december 1-15, 2011 ApparelOnline 11

MINDTREE

The Government has approved 51 per cent Foreign Direct Investment in multi-brand retail, paving the entry of international firms such as Walmart, Tesco and Carrefour into the $ 450 billion market. Is this a good move or will it kill Indian retailers, who slowly are building their brand image…

questionnaire

now, we need to work more on our fabrics and

need support from our fabric vendors to develop

new and different fabrics. Instead of technology

and manpower, companies should invest in

backward integration to have complete control

over the supply chain to ensure a combination of

quality, price and delivery.

Shishir Kapoor, Director, MLK Exports (P) Ltd.,

Lucknow Investment in technology and

machinery has become expensive because of fall

in rupee which also means flight of capital from

India. If the companies opt for expansion at the

moment, the cost will be increased by at least

15-20 per cent. The orders are still coming in,

but the slowdown of the market is occurring as

a result of people who fear that their stocks will

be leftover. The correct strategy at the moment

would be to wait and watch, and invest only

when dollar comes to a more realistic level.

Manpower has already become more expensive,

with the wages increasing by almost 100 per

cent, which is not expected to decrease, but

in fact continue to rise. Even the people at

managerial level demand very high salaries,

with any consideration of productivity. So

at the moment, increasing manpower is a

secondary issue, which can be done once the

market gets better.

Sanjay Mehta, Managing Director,

Rekognation, Jaipur The best thing to do

at the moment is to keep a low profile. I have a

very strong intuition as well as feedback from

reliable sources in Eu that the condition of the

market will remain like this for an entire year.

This crisis is very similar to what happened

in Japan. People currently are not looking at

buying clothes as a necessity, as they want to

purchase substantial and meaningful things

like property and houses. Although a few

orders will come in from time to time, they

will not be as good as last year or even the

beginning of this year. Therefore, there is no

point in investing in manpower or technology

and not utilizing it for a year. Write your comments to us by 7th December 2011 at: [email protected] or post your views online through our website: www.apparelresources.com


The IndusTryPIoneers…Those who think differently have always remained at the top… and nothing can validate this

fact better than the names which come up year after year at the AEPC Export Awards. Some

are undisputed leaders, while others are relatively low-profile companies doing a good job. But the

thread that holds them together is the conviction to remain firm on their vision to be ‘the best'. There

is unanimity in thought, when it comes to the way forward… cutting down cost, increasing service

levels and quicker deliveries are the only way to grow.

Though all agree that technology is important to growth, it has also been highlighted that technology

alone is not the key; it is a combination of relevant technology and skilled manpower that runs the

technology, which makes technology an edge to beat competition. ‘People' have emerged as the

biggest focus area of all the companies, whatever be their size, creating teams and keeping workers

engaged is acknowledged as a priority for all these performers. Perhaps this is one of the reasons

that these companies stand tall among other exporters. Apparel Online has many times advocated

the importance of ‘people management' and motivating employees to achieve goals. It is

heartening to see that exporters are now looking at worker welfare not as a compliance issue but

a growth vehicle.

The industry has many times come under fire for constantly seeking ‘help' from the Government, but

the achievers feel that it is the responsibility of the Government to constructively support the industry

which is a huge employment generator. The logic is simple… the Government aims to create more

jobs and this industry is the only one after agriculture which can absorb fresh hands and train them

to perform with little training. It is argued that a synergy must be created between the Government's

interest and the growth potential of the industry.

The projections for the future are positive and every single winner is determined to remain upfront

and deal with the challenges head-on. Though they accept that the global equations are changing,

there is no fear, as they have already put strategies in place to circumvent the challenges.

Developing new markets and expanding product capabilities is also on their minds…

EXPORTaWaRDS

The following pages carry views on various thoughts from eight of the achievers… despite the difference in the persona of the person behind the company, there is similarity in the determination to whether all odds…


aManaging Director, Pearl Global Limited

Reason behind success…There are multiple reasons behind my success, but the three most important would be the support of my father and family; my highly efficient and motivated team that manages the business on a day-to-day basis; and stable and ethical customer base who have supported us over the years in fulfilling our increased capacities. My father is

one of the leaders in the business and he has been a very important guide and mentor over the years and it is his vision that gives direction to my efforts to always look upwards.

balance of Technology and PeoPle… High productivity technology systems are a definite need to stay in the competition today, having said that the industry remains to be extremely labour-intensive. In addition to upgrading our technology which is a continuous process, workers management and motivation is the important key. Production staff in the company needs to continuously watch and manage daily and hourly production and manage the production floor through various industrial engineering and workers training and motivation programs.

goveRnmenT suPPoRT...The garment industry continues to be an extremely challenging industry due to its labour-intensive nature. The major retailers and buyers have become more and more efficient over the years in their sourcing strategy. Due to the worldwide economic situation, we are today facing further pressures in an already low margin business. There is acute competition from neighbouring Asian countries on the pricing

structures. The incentive from the Government is a vital factor for survival of the garments industry. Ironically, the incentives have been continuously reduced over the years which have caused major consolidation in the industry and today these are much lower companies in the business.

In my view, the garment industry is the largest provider of employment, than any other industry, it is imperative that the Government should continue to support it by all ways and means possible. In the next phase the garment industry will need to venture out of major cities such as Delhi, Bangalore and Chennai and go into smaller cities which can cause huge job creation which would have a huge positive impact for the country. I feel the Government should encourage the industry with significant incentives to expand into smaller cities the way countries such as China had encouraged the industry and developed in the interiors of the country. This will lead the industry to be in a better position to present itself in a more strong and vibrant way.

sTRaTegy foR gRowTh… The current situation in the industry to export to traditional markets will continue to be a challenge. In order to sustain growth in the coming years, it will be very important for us to explore new market and better product. However, the indigenous inflation and overseas competition will continue to be a challenge.

global visibiliTy… We are already operating our business from 7 countries spread over Asia, Far East, UK and US besides India. During current slow economic conditions world over, especially in US and Europe, we have consolidated our business with no immediate expansion plan. However, our vision is to grow at the rate around 15% annually over a 5 year period. 2012 will definitely be a year of focusing on existing business and bringing operational excellence in what we do and have as an infrastructure.

PulkIT seTh

In addition to upgrading our technology which is a continuous process, workers management and motivation is the important key.

As the son of the dynamic Mr. Deepak Seth, Chairman, House of Pearl Fashions Limited, young Pulkit Seth comes with many expectations from the industry. And he has not disappointed… emerging as the young entrepreneur with the highest exports for two financial years in a row. Armed with a Bachelor's degree in Business Management from the US, Pulkit entered the business in 2002 and has been a key player in restructuring the Pearl Group and developing both domestic and overseas operations. Today the company has 22 owned manufacturing facilities, 12,500 machines with a capacity to produce over 55 million garments annually and over 18,000 associates and employees spread globally. With his wife Shefali overlooking the product development and design capabilities of the company, Pulkit is ready for all possible challenges and believes that it is now the turn of Generation Next to take the industry to the next level.

EXPORTaWaRDS


aChairman-cum-Managing Director, Eastman Exports Global

Reason foR success...We have been very upfront in our approach to the business and over the years created a company that has diversity in marketing, greater flexibility especially on quicker deliveries and volumes, huge production base, stringent quality measures, effective communication and strong product development team with all modern R & D facilities.

Measures taken to Improve Productivity

It has become very important to continuously improve upon the productivity levels, while simultaneously working on

reducing cost of production for better bottom lines. Some of the measures that we undertake include upgrading machineries on a regular basis, frequent training to workers for better productivity, adopting better methods of production for increasing productivity and decreasing waste, build in vigorous quality control procedures to prevent mistakes at early stage, and recycling of waste materials to reduce costs and remain environment-friendly.

woRking PhilosoPhy...At Eastman Exports our every act is driven by our commitment to ‘quality’ whether it is in product, operations or working culture. Today, it has become imperative to provide better working environment in the factory to keep the workers satisfied, as they are the foundation of a labour-oriented industry like garmenting and only if they are satisfied, will they

stay committed. In our effort for ‘quality’ we have been conferred certificates like Oeko-Tex100, GOTS, ISO 9001, ISO 14001, WRAP and SA 8000 for quality management, environmental management and social accountability management.

why is indian indusTRy sTRuggling…Global market conditions and worldwide recession are adversely affecting prices and volumes in international

trade. Though the phenomenon is not unique to India, certain other factors have added to the woes making it worst. Among them the erratic cotton/raw material policy resulting in huge fluctuation in prices is one of the main factors, it is indeed sad that despite a good cotton season the industry is without relief. Frequent changes in policies have resulted in increase of finance cost, making it difficult for exporters to meet their running expenses. This has also slowed down the industry, which is already getting fewer orders from global markets.

goveRnmenT suPPoRT...The textile industry is the largest employment provider next to agriculture and any such employment providing industry needs certain Government support to keep the labour occupied and this is universal. It is the responsibility of the Government to ensure that such an industry is healthy and continues to generate employment opportunities. It would be wrong to say that the textile industry is always asking for incentives, in fact this industry is in reality not receiving incentive support from the Government to stay competitive. What it does get is duty drawback which is not an incentive but refund of part of excise/customs duties. Companies can individually strengthen their companies, but as an industry it has to be on a bigger platform, which only the Government can support.

sTRaTegy foR gRowTh..In these difficult times, we are working on increasing customer satisfaction, providing competitive prices and ensuring on-time deliveries, while investing in developments of new finishes and innovative fabrics through R&D. Future strategies also include planning capacity for better FOBs, as competitive prices is now a must for growth.

how To become global PlayeR…As long as we concentrate only on cotton products our growth is limited, to become a player at par with truly global players, we need to expand our offerings and instead of focusing only on cotton products, we need to diversify to synthetic products, which will open up a whole new market segment giving bigger opportunities of growth.

n Chandran

Future strategies also include planning capacity for better FOBs, as competitive prices are now a must for growth.

A name that has made the knitwear city of Tirupur proud, Eastman Exports is among the best five garment export companies in India. A completely integrated knitwear company from spinning to garmenting, led by the dynamic CMD N Chandran, a textile technocrat, today has 24 state-of-the-art garment production facilities in and around Tirupur manufacturing 8 million knitted garments/month and 4 million underwear/month. With a turnover exceeding USD 250 million, Eastman Exports is constantly investing in technology, systems and people for higher goals.

EXPORTaWaRDS


WDirector & CEO, Gokaldas Exports Limited

why india…The strong entrepreneurial spirit underlying the apparel industry in India and the flexibility of the industry to respond to the challenges and opportunities which are faced from time to time make it a strong manufacturing base. The availability of a diverse range of fabrics, the creative abilities of the designers combined with the developments in Chinese apparel industry is providing a great opportunity to the Indian industry to leverage

its strengths.

focus of invesTmenT...At GE we have invested in three areas for growth – information technology to streamline and support business processes; training of managers, workers and supervisors to adopt modern manufacturing practices; and new machinery to automate and speed up critical production processes.

PeoPle focus...We have consistently practiced progressive HR policies for many years and invested in employee welfare facilities like canteens, crèches and health care units. Our wage rates are always aligned with market conditions and supplemented by attractive productivity-linked incentive schemes. Training of workers to upgrade skills to improve their earning capacity is undertaken regularly. Training of

supervisors to improve their “soft skills” supports the sustenance of a congenial work environment.

why is india suffeRing...When the macro conditions are adverse, all trading nations get affected be it India or China or Bangladesh. The impact depends on the underlying reasons for the crises and the policy safety-net available to the industry to deal with such crises. Flexibility in employment policies supported by

pragmatic labour laws, reflecting the realities of our industry, can be a big help in countering such crises. If there is a currency crisis, the impact depends on the relative strength of the currencies. In the last few years we have been hurt because our currency has been appreciating while that of competing Asian economies has been stable or depreciating.

Policy suPPoRT...A key determinant of our ability to respond effectively to crisis is the enabling Government policies and the speed with which the policies are re-aligned to market realities. Export incentives like duty-drawback and interest subvention are being scaled down in India while in neighbouring countries they have been increased. This has diluted our ability to deal with the crisis.

India is an emerging economy and it is an economic reality that Government support is essential for enlarging our presence in the global arena. Favourable currency environments, tax breaks, specific incentives, specific fiscal and monetary policy support have been used by all countries, developed or developing, to expand their share of international trade. All industries seek this, even when they are exclusively operating in the domestic economy, so it is not unreasonable to seek policy support for operating in the global economy which is far more competitive and dynamic.

sTRaTegy foR gRowTh...The strategy is simple – increase depth of coverage with existing buyers in terms of categories of products; increase the customer base, with focus on those who are growing in their markets; streamline manufacturing efficiencies to be able to compete effectively, and service the growing Indian apparel retail market.

indusTRy visibiliTy...The apparel industry plays a key role in the Indian economy but is not “visible” because it does not have many “big players”. Consolidation, innovation and growth will give it the visibility. The rapid growth of organized retail in India will contribute in moving the industry to this level. Strategic alliances with large global retailers as well as large Indian brands can also support the movement towards “visibility”.

GauTam ChakravarTI

The Apparel industry plays a key role in the Indian economy but is not “visible” because it does not have many “big players”.

With 46 fully equipped, modern, manufacturing factories, all based in and around Bangalore, Gokaldas Exports Limited is India's largest public limited company in the manufacture and export of readymade garments, producing 3 million woven and 1 million knit apparels per month. Managed by a team of professionals headed by Gautam Chakravarti, Director& CEO, this ISO 9001:2008 certified company specializes in the manufacture of outerwear, blazers and pants (formal and casuals), shorts, shirts, blouzes, denim wear, swim wear, active and sportswear. About 47,000 skilled and highly skilled employees make this company one of the biggest employers of this industry.

EXPORTaWaRDS


SChairman-cum-Managing Director, Orient Craft Limited

Reasons foR success…To be honest I don’t think I am really successful, as we are still far away from the higher platform at which I would like to see Orient Craft, but yes I am proud of the able and very capable people around me who have taken this journey to this level. The strong teams that are the pillars of OC have stood tall at all times and helped us to be at the right place at the right time.

Role of Technology…It cannot be denied that technology is very important to achieve global benchmarks today, but what is more important is getting people to adopt and use the technology to their advantage and at optimal levels. We have invested in both hardware and software to record efficiencies of operations so we can track mistakes and improve, but the biggest challenge that we are facing is the resistance to the technology. It is not about getting technology, it is how to involve workers to appreciate the edge that it gives them to the overall advantage of the organization.

focus on PeoPle…Engaging people is a topic very close to my heart and I can go on and on… but the crux is that it is important to motivate people at all

levels. Motivation could be money, training, recognition, personal growth or even opportunities and facilities to enjoy life and work. At OC we are very clued into involving people in our growth story and every work is allowed to talk to me personally if there is a problem. In fact, with the day-to-day running of the units in capable hands most of my time is spent on ensuring that my people are motivated and happy.

biggesT consTRainT foR india… Whatever be the reason… the biggest constraint for growth of the Indian garment industry is ‘COST’. We are not giving the price the buyer is asking for today. Countries like Bangladesh, Vietnam, Cambodia are growing, are they not affected by global recession and other problems. It is because they can give the right costing. We cannot say let us give a $ 10 garment at $ 5 and then play with the quality, that has to be taken as given. We have to find a solution to keep our cost of production low, whether it is input cost, manufacturing cost or any other factor that influences our final FOBs. For this both the Government and the industry have to play their roles.

Role of goveRnmenT… The Government has to take certain responsibility to promote and increase competitiveness of the industry. I am never in favour of undue privileges, but the Government needs to understand what this industry brings to the table and accordingly promote its growth. Look what China has done, not because they want to be tailors to the world, but because they need to give employment to a large number of people and garmenting in one such industry which can achieve the same. Similarly, the Indian Government too must use this industry to realize its employment generation goals and be more industry-friendly in its policies.

sTRaTegy foR gRowTh…There is only one way… reducing cost, increasing service levels and as I always say… giving the buyer a compelling reason to work with us.

How to achieve Global Visibility…

We are all small fish in the global context and the only way to be visible globally is to move away from our individual interest and create small collaborative groups including every stakeholder in the supply chain and present a united front to grab big business. Once that happens, no one can ignore us.

sudhIr dhInGra

The biggest constraint for growth of the Indian Garment industry is ‘COST’. We are not giving the price the buyer is asking for today.

Since its inception in 1978, Orient Craft Limited has consistently been one of India's top garment manufacturers and export organizations. Today it stands strong with 21 manufacturing facilities in and around Delhi including a Green Leed Certified factory in Rajasthan. Led by the dynamic CMD Sudhir Dhingra with a committed workforce of over 25,000, are producing more than 1,00,000 pieces of global fashion in a day. With three distinct divisions – Wovens, Knits and Home Furnishings – the company is catering to over 40 fashion brands and designers like Marc Jacobs, Diane Von Furstenberg, Polo Ralph Lauren, Blue Label, Banana Republic, Michael Kors, DKNY, Express, Tommy Hilfiger, Macy's, Monsoon, Marks & Spencer, Ann Taylor, Abercrombie and Fitch. Orient Craft stands true to the image of being ‘the name behind names'.

EXPORTaWaRDS


LChairman-cum-Managing Director, Rama Krishna Knitters

Reason behind success…A determination to make a world class garment export company accompanied by hard work, dedication and the vision to think forward have stood us in good stead.

sTePs To be comPeTiTive…Generally in India, garment trade is divided into two parts… One is the Fabric division and the second is Garmenting, but in the other parts of the world most of

the units are composite units. By being integrated operations they have the upper edge of getting control over the pricing, quality and quantity. With the garment supply chain getting very competitive, buyers nowadays do not want excuses about shipment delays. So we are doing backward integration and making our unit a composite one by adding that latest technology, machines in fabric, printing, embroidery and in garmenting sector. When buyers visit our unit and they see all the facilities under one roof, they are very much impressed and assume that they are in the right hands. If potential buyers are impressed then sky is the limit.

PeoPle focus…It cannot be disputed that satisfied and motivated workers are increasingly driving growth of companies. We believe that our

employees are our most important assets through which we can reach the top in each category of our product and service. Therefore, we emphasize on their continuous improvement through upgradation of relevant knowledge and training. Moreover, we have a training centre in our company which continuously produces skilled workers at different intervals. In these difficult times workers always demand continuous work and that the working conditions should be comfortable, so we ensure that we do not

disappoint them on these fronts and with the satisfaction of buyer, continuous work is there in our factory.

is indian indusTRy on The RighT TRack… Indian garment exports is limited by the product basket that we offer though the country is definitely increasing capacities and progressively concentrating more on training and involving professionals in technical areas. If companies remain on this path as we are doing there is no reason why the industry cannot grow and claim bigger share in world market. For years it is only a few companies which are the key performers, smaller companies like us need to now have the vision to grow bigger and overpower the limitations that have held India down.

goveRnmenT suPPoRT…It is important to understand that we are talking about growth in exports and not the domestic markets. In our country there are a lot of taxes that are involved in different processes of manufacturing the same garment like excise duties, vat, etc. The Government incentives are only the refund of these taxes as the final products are not used in India. The higher the taxes are, the greater the need for the industry to demand more incentives to face the competition with other countries. It is not a matter of respect and credibility of the industry, it is the matter of international competitiveness, and moreover we are trying very hard to increase percentage of our exports in the world so we are at least at par with our immediate competiting countries. That is the only favour we are expecting from the Government. I also feel that it is the money of the exporters in the shape of taxes, which afterwards takes the name of incentive from the Government.

sTRaTegy foR gRowTh…No doubt these are the challenging times. Our main strategy is to find new markets so that the demand from these new markets can increase our production and growth. At present we are doing business in 12 countries and now we are focusing on another 7 countries and getting positive results from these countries.

naresh kumar

For years it is only a few companies which are the key performers, smaller companies like us need to now have the vision to grow bigger.

Ludhiana-based Rama Krishna Knitters, having an installed capacity of 50,000 pieces per day with a capital base of $ 25 million and annual export turnover worth $ 225 million is a company on the move. Driven by the vision of its Chairman-cum-Managing Director Naresh Kumar, the company has shown exceptional growth for which it has been honoured by the AEPC in the highest growth category for the Financial Years 2008-09 and 2009-10. Though the company may be a small player but the vision is large and the CMD is working to create an organization that is truly ‘world class'.

EXPORTaWaRDS


CCEO, Cheer Sagar Exports

Reason foR success...We are a company on a mission with a clear vision of what we want to achieve… the vision is backed by hard work and togetherness. It is the team which is driving the success with a perfect balance between quality and commercial productivity, creativity with technology and commitment without argument to succeed.

imPoRTance of Technology...We are striving hard to achieve good quality and timely

deliveries; for this we have made investment which is a world-class technology and are adding more to improve our products and working operations. Some of the technologies that we have recently invested in include Veit Foam Finishers, Richpeace Autocad, Mimaki Digital Printing Machine and latest ERP by Royal Datamatics. We have never shied away from improving our systems and going for latest technology is one way to beat competition.

PeoPle focus...I truly believe that the strength of a company is the team of the company and we have taken steps to involve our people in our growth. We have placed suggestions boxes on different levels of the factory which lets our workers give suggestions and complaints directing to management to avoid lack of communication and gap in making

decisions to directly deal with the issues. We have also initiated incentive systems on the basis of performance, regularity and consistency of workers working in our company to keep them motivated for better efficiencies and productivities. Though we are a relatively small company we regularly organize training programs like LEAN implements for better efficiencies and to avoid wastages. We can only expect performance from people if we engage them and make them partners in our growth.

how is india PosiTioned...I think we lost a very good opportunity of growth in Indian exports in the last 2 years because of excessive increase in the prices of our products due to uncertain and fluctuating cotton prices, continuously increasing labour prices and rupee getting stronger. Now when there is a global recession, the buyers are hesitant to place orders in India based on performance and deliveries in the last few years which in turn will affect this business in a big way. If we had been more responsive and given the buyer prices that he was looking for, today, India would have been a favoured destination for buyers regardless of the market slow down. Indian exporters look at business interest in the short term and fail to plan five years in advance. I think this is one of the biggest reasons for limited growth of the Indian garment industry despite the huge potential that the country holds as a complete textile supply base.

facToRs ThaT could affecT business going foRwaRd...Garment Industry has lot of diverse factors which can affect the business… it could be anything – weather conditions abroad, currency fluctuations, yarn/raw material price fluctuations, labour/worker availability, new terms introduced by different countries on import, competitions with different exporting countries. There are too many challenges to be faced almost on a daily basis, so we are naturally looking for some support from the Government bodies from time to time depending upon the different factors. It is not only this industry but all industries demand support and with the high level of variables that this industry works with and the competition levels where other countries like Bangladesh are strongly supported by their Governments, it is only justified that the garment export industry should get support to make it and keep it globally competitive.

sTRaTegy foR gRowTh...Reducing the lead time and delivering quicker is the only key to growth in the present scenario and we at Cheer Sagar Exports are working in that direction.

rakshIT Poddar

Though a small company we regularly organize training programs like LEAN for better efficiencies and to avoid wastages.

Coming from the historical city of Jaipur, Cheer Sagar Exports under the stewardship of Rakshit Poddar, CEO has earned the reputation of a young forward looking company with a clear focus on developing new markets. The company has already made inroads into Korea, Uruguay, Turkey, Hong Kong, Poland and Kuwait. At just 33 years of age, Rakshit ably supported by his better half, Raghushree and guidance of his father, has taken the company turnover to nearly Rs. 20 crores in a very short period of time, earning him recognition in Highest Growth category for two consecutive years. The company believes in offering complete buyer satisfaction and is investing in design inputs and product development for stronger bottom lines.

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EChairperson, Kaytee Corporation

eaRly yeaRs…Born on 27th February 1934 in Rajkot, Gujarat, Mr. Harkishon Udani has had long and a distinguished career. A learned man, he is a double Honours Graduate of Science and Law from Gujarat University. Not satisfied he was keen to have managerial and administrative experience, so he successfully attempted the IAS and Central Services class one examination in the year 1956 and

served with the Indian Railways for eight years, before seeking premature retirement and joining the family business.

involvemenT wiTh indusTRy… His companies have had interest in spinning, textiles, yarn and apparel exports. Under his leadership his companies Keshavlal Talakchand and Kaytee Corporation had the distinction of winning over 60 top Export Awards for outstanding export performance in textiles, yarn exports and apparel exports. Never a person to rest on his achievements and always looking for new avenues to expand India’s reach in the international market, Mr. Udani pioneered exports of Denim fabrics from India by exporting the first large volumes to the erstwhile Soviet Union.

develoPmenT of kniTweaR segmenT…

In 1974, sensing opportunities to manufacture and export cotton knitted garments in a big way, Mr. Udani entered Tirupur. At that time no organized exports of cotton knitwear was taking place out of that area. He is one of the pioneers to start knitwear exports out of Tirupur and brought a large number of East European and West European buyers to Tirupur. These buyers helped in establishing quality systems and standards in a region where at that time the industry was largely a cottage industry. It is a matter of great satisfaction to Mr. Udani

that from those early beginnings, today Tirupur is on the world map of knitwear exports. For his contributions to Tirupur, Mr. Udani was honoured by the Tirupur Exporter’s Association with a “Life Time Achievement Award” in 2005.

acTive PaRTiciPaTion in gRowTh of indusTRy… Mr. Udani has been associated as Committee Member with Indian Cotton Mills Federation, Cotton Textiles Export Promotion Council, Confederation of Indian Industry, All India Exporter Chambers, Indian Merchants’ Chamber and various other Associations. A multi-faceted personality, Mr. Udani has interests in sports, music, literature and poems and is associated with large number of social, cultural and charitable institutions in Mumbai and Gujarat.

views on indusTRy Today…Since Mr. Udani is acknowledged as the person responsible for bringing apparel exports to Tirupur, he is saddened to see that Tirupur faces huge problems at this point of time. Sharp cost increases, non refund of all the taxes by way of realistic duty drawback and inflexible labour laws have resulted in Bangladesh stealing the march over India, especially in the knits area. Mr. Udani recalls that in the 70’s and 80’s and even in the 90’s India used to be a major hub of basic T-Shirts. Unfortunately that business seems to have gone.

Mr. Udani believes that the future for India’s apparel export is in the value add segments. India is now poised to become the next Turkey and perhaps even Italy. India has entrepreneurship, great creativity and skilled artisans, all of which will help create value add products for our growth in the export arena.

kayTee coRPoRaTion Today…Today Kaytee Corporation is managed by over 20 professional managers, each of whom is a leader in his field of activity under the guidance and leadership of Premal Udani. The company operations are situated at Tirupur and are completely vertical, from knitting all way up to final garmenting. The factories are rated and comply with all COC requirements, for discerning buyers such as Walmart, Macy’s, Saks, Walt Disney, etc.

harkIshon udanI

In the 70’s and 80’s and even in the 90’s India used to be a major hub of basic T-Shirts, unfortunately that business seems to have gone.

Experiences of the stalwarts of the textile industry are the foundation on which this industry has grown over the years. The farsightedness and determination of these visionary have over the years given shape to the direction of the industry. One name that is revered by the knitwear segment in particular is that of Mr. Harkishon Udani. In fact he is often referred to as the Father of the Knitwear Industry in India and the person responsible to get international buyers to the small sleepy city of Tirupur. Today his son Premal Udani is Chairman of the AEPC and has continued to follow in his father's footsteps to guide the industry through his active involvement with various industry organizations. Apparel Online salutes Mr. Harkishon Udani on receiving the well deserved Life Time Achievement Award from the AEPC.

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RVice President, Raymond Limited

Reason foR success...The single biggest reason for success at Raymond garment operations is the targeted focus on specialized categories to

create excellence. Within key products we have the flexibility to accept smaller orders, offer different finishes/washes and provide product development inputs. This balance of focused product with flexibility gives us strategic advantage and competitive edge.

imPoRTance of Technology...We believe in investing in ‘relevant technology’ as opposed to new technology or popular technology. The management has put in place a comprehensive matrix on how to select the right technology that will add value to our operations. Factors like deskilling of operations, cost of labour, availability of manpower, training requirements to name a few go into critically evaluating any new investment in technology, and higher productivity need not be the only sub-set. It is important to utilize the technology to the optimal level for higher ROIs for which more than the equipment it is critical to understand

requirement and training needs. Because we are so involved in selection of relevant technology, many machine manufacturers coordinate with our R&D team to design new equipment that adds value to garmenting operations.

PeoPle focus… To us ‘people’ are our real assets and more than technology, it is dedicated teams that drive the company. In an industry like garment manufacturing where the capital investment is

low, duplicating infrastructure is no big deal, but replicating a committed and motivated team right from the workers to the management for similar results is almost impossible. At Raymond a well defined HR policy is a culture that has stood us good in the long run. Even at my level 30% of my KRI depends on how people rate me… have I done enough to motivate my people, chart out a growth plan for them, develop latent strengths of my team. We invest around 14% of the salary of the operator on a per annum basis for training and this decreases to 5% of the salary per year from the second year onwards.

In our endeavour to create a great team we participated in ‘Great Places to Work With’ program conducted by Economic Times, and though Silver Spark was a small company compared to other participants, it was voted the Best Company for Women, Best Company to Work and Best Manufacturing and Production in 2009. For us a motivated work force is a business responsibility and we apply tools like balance scorecard and continual training to keep people involved.

why has maRkeT slowdown hiT india so badly…The affect of market slowdown is global and no country is unaffected, but the impact of the slowdown is felt more than proportionately in India because we have limited strength as a manufacturing base and we have not been able to leverage the strength to a level where buyers are completely dependent on us for certain categories. There is a need to expand our product basket and also our buyer base. Women’s tailored clothing, jackets trousers, denim jeans, refined casual categories with modern washes – tailored casuals, dress shirts, men’s overcoats are some categories that we should look at for future growth. It is also important to get support from the Government by way of better infrastructure, flexible labour policy and more conducive investment environment for companies to think bigger and get to a global scale.

ashIsh Grover

We believe in investing in ‘relevant technology’ as opposed to new technology or popular technology.

Raymond is a truly global company with deep roots in the textile business. Besides weaving some of the best fabrics, the company operates manufacturing facilities for tailored garments, jeans and dress shirts both for the international and domestic market. While suits, jackets and trousers are manufactured through Silver Spark Apparel, dress shirts are produced by Celebrations Apparel, and jeans come from the Everblue Apparel unit. All three wholly-owned subsidiaries of Raymond Ltd are situated in Bangalore. Silver Spark has the capacity to produce 2 million jackets, 3 million trousers annually; Celebrations Apparel in technical collaboration with Flex Japan has the capacity to manufacture over 2 million shirts per year, while the production capacity at Everblue is 1.5 million garments per annum.

The international business and garmenting segment of the business at Raymond is spearheaded by Ashish Grover, Vice President, Raymond Limited. A NIFT graduate, Ashish moved to Raymond in 2003 after stints with Niryat Sam, Gokaldas Images and New Times Fashions. Under his dynamic leadership the garment factories of Raymond are benchmarked for their infrastructure, operations, product and management policies…

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image of The indusTRy...The biggest setback for the industry has come from the fact that they have never been in a strong negotiation position with regards the Government despite being the largest employer of manpower after agriculture. The industry has collectively never been able to impress upon the Government the social relevance of the textile supply chain and leverage the importance to get ‘benefits’. The Government looks at the industry from the perspective of how much they are adding to the GDP. From empowering millions of women with decent work to giving work opportunities to workers with no skill sets, this industry needs to be top priority for the Government, but the industry has failed to grill in the social edge to gain greater negotiation power.

fuTuRe sTRaTegy...Working within our well defined strategy of product specialization, we are looking to expand our market base and after strong presence in the US, EU, Japan and India, we are incubating newer markets in Africa and South America. I have a strong feeling that the world economic order has changed forever and we need to adjust accordingly, vacating the price point categories for lower cost countries and working for FTAs like the one with Japan for wider market access.

HIGHEST GLOBAL ExPORTS• Gold- Shahi Exports Private Limited, Faridabad• Silver- Gokaldas Exports Limited, Bangalore• Bronze- Eastman Exports Global Clothing (P) Ltd, Tirupur

HIGHEST GROWTH IN 2008-09 (OVER 2007-08)• Gold- Celebrations Apparel Limited, Bangalore• Silver- Cheer Sagar Exports, Jaipur• Bronze- Rama Krishna Knitters (P) Limited, Ludhiana

HIGHEST GROUP EMPLOYMENT PROVIDER• Gold- Gokaldas Exports Limited, Bangalore• Silver- Shahi Exports Private Limited, Faridabad• Bronze- Orient Craft Limited, Gurgaon

HIGHEST ExPORTS BY MANUFACTURER ExPORTER• Orient Craft Limited, Gurgaon

HIGHEST ExPORT BY MERCHANT ExPORTER• Korath Gulf Links Impex (P) Limited, Mumbai

HIGHEST ExPORTS IN KNITTED GARMENT• Orient Craft Limited, Mumbai

HIGHEST ExPORTS IN WOVEN GARMENT• Celebrity Fashions Ltd., Chennai

HIGHEST ExPORTS IN COTTON GARMENT• Nahar Spinning Mills Limited, Ludhiana

HIGHEST ExPORTS IN WOOLLEN GARMENT• Silver Spark Apparel Limited, Bangalore

HIGHEST ExPORTS BY WOMEN ENTREPRENEUR• Mrs. Sarla Ahuja, Shahi Exports, Faridabad

HIGHEST ExPORTS BY YOUNG ENTREPRENEUR• Mr. Pulkit Seth, Pearl Global Limited, Gurgaon

HIGHEST UNIT VALUE ExPORTER• Silver Spark Apparel Limited, Bangalore

HIGHEST GLOBAL ExPORTS • Gold- Shahi Exports Private Limited, Faridabad• Silver- Gokaldas Exports Limited, Bangalore• Bronze- Eastman Exports Global Clothing (P) Ltd., Tirupur

HIGHEST GROWTH IN 2009-10 (OVER 2008-09)• Gold- Rama Krishna Knitters (P) Limited, Ludhiana• Silver- Aman Exports International, Jaipur• Bronze- Cheer Sagar Exports,Jaipur

HIGHEST GROUP EMPLOYMENT PROVIDER• Gold- Shahi Exports Private Limited, Faridabad• Silver- - Gokaldas Exports Limited, Bangalore• Bronze- Orient Craft Limited, Gurgaon

HIGHEST ExPORTS BY MANUFACTURER ExPORTER• Orient Craft Limited, Gurgaon

HIGHEST ExPORT BY MERCHANT ExPORTER• Korath Gulf Links Impex (P) Limited, Mumbai

HIGHEST ExPORTS IN KNITTED GARMENT• Orient Craft Limited, Gurgaon

HIGHEST ExPORTS IN WOVEN GARMENT• Pearl Global Limited, Gurgaon

HIGHEST ExPORTS IN COTTON GARMENT• Nahar Spinning Mills Limited, Ludhiana

HIGHEST ExPORTS IN WOOLLEN GARMENT• Silver Spark Apparel Limited, Bangalore

HIGHEST ExPORTS BY WOMEN ENTREPRENEUR• Mrs. Sarla Ahuja, Shahi Exports, Faridabad

HIGHEST ExPORTS BY YOUNG ENTREPRENEUR• Mr. Pulkit Seth, Pearl Global Limited, Gurgaon

HIGHEST UNIT VALUE ExPORTER• Silver Spark Apparel Limited, Bangalore

AWARD WINNERS FOR FY 2008-09 AWARD WINNERS FOR FY 2009-10

Life time Achievement AwArds – mr. harkishon Udani (Kaytee corporation) and mr. sri nath (nath Brothers)

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Twilight, Gossip Girl, Harry Potter, 90210, Mad Men, Star Wars, X-Men,

Vampire Diaries are just a tip of the long list of names of movies and television series that bring smiles on the faces of both the fans and the retailers. In times, when retailers are using every possible marketing strategy to pump up their sales as consumers are reluctant to spend unless on a special occasion, the clothing and accessory lines from the franchise names continue to get fanatic follow-up and sales. With no need for promotion and an already established name in itself, these brands not only drive sales, but also increase the footfall, turning these fans into potential impulsive buyers of other products in the store. Walmart’s move to keep twilight merchandise in their stores in 2010 created a howl of excitement among the fans and the footfall was immense increase sales in the quarter.

CBS Consumer Products and top women’s contemporary specialty

store retailer bebe stores introduced a branded clothing line ‘bebe for 90210’ based on CBS Television Studios popular 90210 television series. The apparel partnership programme represented an unprecedented collaboration between the producers, the wardrobe stylists from the show and bebe’s creative design team. The line was introduced simultaneously on-air for viewers and in-stores for consumers as a simple strategy of spreading the word and the rest was done by the fans. The line launched in conjunction with new episodes of the hit series’ third season included styles worn by various characters in the show along with products inspired by the series.

Warner Bros. Consumer Products partnered with Uniqlo, the largest clothing retailer in Japan, for a Harry Potter apparel line in July 2011 with the release of its last installment and the pieces were gone in no time. Target worked

All year long retailers try out different marketing strategies like early openings, elaborate displays, huge sales and discounts on the merchandise, special limited collections to name a few to increase footfalls, but, every now and then there comes a phase when sales are served to the retailers on a silver platter. Huge turnouts, long lines and instant sales are some of the privileges enjoyed by the retailers, even in recession due to the fans who are determined to buy collections inspired by their favourite movie, celebrity or event…

WORLDWRaP

on a line inspired by famous television series Gossip Girl with Anna Sui, the TV series Mad Men that had everyone oohing and aahing over its slick ’60s-inspired fashion have its own line by banana republic. Not only retailers but fashion brands and high-end retailers weren’t left untouched by the crazy fan fever and they created their fan-driven fashion lines which sold out like hot cakes. The hit series Vampire Diaries fashion line hit the UK retail market in November 2010 and was an instant hit amongst its fans.

The trend looks far from gone with new collaborations and tie-ups being made. H&M is all set with its line inspired by the movie The Girl with the Dragon Tattoo; the Swedish high street store will launch designs by Trish Summerville, costume designer on David Fincher’s version of The Girl with the Dragon Tattoo. The clothes bought by these fans are like souvenirs and so they are never more and always less to have.


To sustain and grow a larger customer base in the market, retailers started to create multi channel retail structures. With individual channels not being enough to reach out to a wider consumer base the strategy became a must have for the retailers, but retail experts warn that if not managed properly, the strategy can do more harm than benefit as the ‘siloed’ channels might fail to meet customer satisfaction and add more complexity to the structure resulting in decreased profits and less footfalls…

United

the channel to success for Retailers…‘SILOS’

Multi channel retail or the retail ‘silos’, as they are commonly called in retail parlance that includes m-commerce, e-commerce and brick and mortar

stores, is a business structure that is in the forefront of every retailer’s mind for driving customer loyalty and sales allover the world. With the increasing growth of technology, a retailer who ignores the option of e-commerce and m-commerce erodes his sales opportunities. But, just adding a channel to the retail structure is not enough to realize the advantages of the multi channel retailing. If a synergy is not created between the different silos of retail operations, it will inevitably lead to a brand dilution because of inconsistencies in the different formats, damaging the customer experience and ultimately the brand which the retailers have spent many years developing.

Though the concept of multiple channels is not new to the retail industry and many retailers have been doing it for a long time now. Sears, Roebuck and Company is a classic example of a well managed multi channel retail module that began as mail-order company in 1886. Years after their first catalogue, the company opened its first retail store, eventually expanding and moving on to their third channel of gift registry and then finally creating their fourth channel – “sears.com”. Through the years of their success, the company has proven to the retail industry that operating through multiple sales channels is possible and can increase customer reach and growth opportunity.

The most important thing for any retailer is to create an omnipresent scenario to provide both existing and future customers with more options and provisions to shop

Since e-commerce and m-commerce cannot influence the point of decision and engage the shoppers through their shopping journey, retailers run the risk of ‘random’ web searches in their stores that will expose customers to competitors’ offers and so retailers need to fully appreciate and capitalize on the m-commerce opportunity to increase online and in-store sales. If managed properly, the structural silos formed can result in success and expansion of the retailers as it helps to improve return on inventory investment; makes better use of marketing and promotional budgets, provides the retailer the ability to meet the customers’ expectations in the future retail economy and it also helps the retailers to analyze customer behaviour, leading to better management of promotional and permanent markdown pricing strategies.

The strategy is working both ways…

Retailers are not only moving on from their brick and mortar stores to the other channels, but the strategy is working both ways where people believe that internet shopping is killing the shopping experience, eBay is the latest web site to announce plans for a physical outlet in the UK. The shop is the latest high-profile experiment being done in London, the pop up store before Christmas will enable shoppers to pay using their smart phones by scanning a quick response code on the price tag like barcodes and direct the phone’s browser to the payment section of the eBay web site. EBay, which opened a similar store in New York earlier, is cashing in on the popularity of smart phones, which are feeding a new shopping culture. More than a quarter of adults and 47% of teenagers now own their own mobiles and are increasingly using them to check prices and research products while walking around shops.

no matter where they are. Understanding the importance of multi channels, major brands from every segment like GAP, banana republic, Dolce and Gabbana, Forever 21, JC Penney, Walmart and many others have introduced web sites and mobile apps to make shopping a more fulfilling experience.

Experts feel that in the enthusiasm to be multi channel and gain footfall, retailers have compartmentalized each format, even to the extent of offering different products, discounts and bonuses creating competition within their own format. In order to provide customers with the flexibility to shop anytime, anyplace, and from anywhere it is very important for the retailers to provide their customers with the ability to transact from any one channel and fulfil or return the same in another channel whenever they want by providing them with a seamless, consistent store experience whether they are visiting the store or its web site or shopping from a smart phone. In order to realize the ultimate goal of providing a customer-centric shopping experience, retailers that operate using multiple sales channels will need to shift their cross-channel organization towards a fully integrated cross-channel retailing system.

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SEARS is one of the most successful multi channel retailers


‘ORGANIC’

The three-day event featured organic food, cosmetics and textiles from India and

Germany and was attended by not only buyers of organic products but farmers, experts in organic farming and textiles, as well as foreign and Indian delegates who attended the many seminars during the three days. In all 80 exhibitors displayed their products and one of the interesting seminars was on organic textiles where experts shared their news on the subject.

Aravindan B from Control Union Certifications talked in detail of the Indian scenario where organic textiles play an important part. “In textiles, where 49 per cent of production is cotton there are 50 million farmers in 100 countries involved all of whom are exposed to pesticides and harmful chemicals, besides the risk of transferring the same to the final product,” said Aravindan, hence advocating the use of sustainable cotton which is bio-degradable so that people, planet and profit are taken care of. No wonder global retail sales of organic cotton have gone up considerably from $ 3.2 billion in 2008 to $ 6.2 billion in 2011 and are expected to touch $ 7.4 billion in 2012.

It was encouraging to know that since 2001, 5,950 metric

tonnes of organic cotton has been grown. India produced 81 per cent of world organic cotton in 2009-10 making it the leader in organic cotton production; other top countries are Syria, Turkey and China. In India, Andhra Pradesh, Karnataka, Gujarat, Orissa, Madhya Pradesh, Maharashtra, Tamil Nadu and Rajasthan are the main organic cotton producers. “The main organic cotton markets are USA and Europe, with brands like Walmart, Nike, H&M, Banana Republic, GAP, Levi Strauss, Target and Nordstrom being users. Germany is the biggest single organic cotton buyer with consumers being between 35-40 years and women being best customers for organic cotton. In India the major hubs for organic textiles are Tirupur, Mumbai and Bangalore,” informed Aravindan.

Errol Fernandes from Dystar spoke on the importance of colour in textiles. “There are natural colours like Indigo, saffron, cochineal, tea, logwood, kermes, tannin, alum and vinegar. The use of synthetic colourants ensures 50 uniform washes while natural dyes do not meet the requirements 100 per cent,” he informed. So can synthetic dyes be used for organic textiles? They can be if they are created according

SuSTaINabILITy

Focus on

at BioFach India 2011, Bangalore

Nuremberg Messe, Germany recently organized the BioFach India 2011 together with India Organic 2011 in Bangalore. BioFach Nuremberg is held in Germany every year and is also concurrently held in five other countries – USA, Japan, Brazil, China and India. Meher Castelino reports from Bangalore on deliberations focusing on organic cotton and India's role in the world market…

to the required norms, said Fernandes. “Keep your red, blue and yellow always green,” he advised.

Rahul Bhajekar, MD, Texanlab Laboratory Pvt. Ltd., spoke about understanding the GOTS (Global Organic Textile Standard) certification which is necessary for organic textiles. Texanlab is one of the few institutes in Asia that has the expertise to perform analysis in compliance with GOTS. GOTS was formed in 2002 in Dusseldorf by four institutes and in March 2011, the GOTS version 3.0 was released and now 13 certifiers are approved by GOTS. All certifiers had their own labels which are now brought under GOTS which sets specific requirements for the complete production cycle of organic textiles, including the cultivation of cotton.”

Mukesh Gupta, ED, Morarka Organics gave his personal perception of organic textiles. He questioned the advantage of organic cotton, since cotton has short and long staples and 90 per cent organic is short staples with less counts. “But still worldwide organic is gaining acceptance now. In the past synthetics overtook cotton as research of cotton went out of fashion. In fact cotton was added to reduce the cost of synthetics to create “Terrycot” which was a big hit

India is partner country for BioFach 2012 at Nuremberg

India will be the partner country in 2012 for one of the biggest and most interesting fairs that will take place which is BioFach 2012 the World Organic Trade Fair in Nuremberg, Germany from February 15-18, 2012. The three sections of the fair are organic food and agriculture, the vivaness section for natural cosmetics and the textile area for organic fashion and fabrics from around the world.

In Hall 8 at BioFach 2012, there will be a blaze of Indian colour with 50 exhibitors displaying food, cosmetics and fashion. Claus Rattich, Member of the Management Board of Nuremberg Messe is excited about the Indian participation as the partner country for the BioFach 2012 the World Organic Trade Fair. “For 10 years APEDA and Nuremberg Messe have been working together and I am thrilled that India is the partner country in 2012. Our aim is to bring together international supply and demand and offer an annual get-together for all players in the international organic movement,” stated Claus Rattich. The highlight of the opening of BioFach 2012 on February 15 will be with a fashion show by Goa based designer, Wendell Rodricks who is known for his experiments with natural fibres and fabrics.


globally. Cotton was considered a poor man’s product but soon organic cotton became a fashion statement. Now fibres made from sea shells, silver, bamboo are blended with cotton and have unique characteristics. Socks don’t stink even for weeks since they have bamboo, silver and cotton,” said Mukesh.

Gerald A Herrmann, Director, Organic Services, which was formed in India with Ramesh Harve in 2005, has been consulting for Indian companies on organic and sustainable issues with five companies using their services. “India is traditionally one of the big cotton producers. In the past there has been good growth and processing but growth rate in recent years was too fast and the credibility and reliability of organic textiles went down in India with BT cotton and small farmer groups. Since there was a market in the world, too many people came into the business that damaged the reputation of Indian cotton and textile industry and did not help to grow it. However if it could be done right, there is a huge potential for raw cotton and all the manufacturing, spinning, weaving and making of garments processes,” stated Hermann.

In many cases organic textiles are expensive. Hermann however felt “They should not be expensive. It is not the right attitude. When organic was developed in Europe we

had very favourable climate. So using natural fertilisers, conventional farmers could have a very high yield but organic had a low yield so to compete, one needs a higher price but in 90 per cent of organic textiles when you introduce the organic system you improve the soil, water retention capacity and many studies have proved that organic can deliver average yield so it must not be expensive. But in economics of scale the organic market is a very small sector, so small quantities are grown and everything is small. If you grow more it becomes cheaper. It all depends on quantity.”

Hermann predicts that in India organic will be more profitable in 10-15 years than conventional cotton with climate change. “The climate change should be balanced, so it will help the farmers, therefore organic will be the cheaper option. India will be amongst the leaders in organic.”

Regarding certifications, which at times has proved expensive for some companies, Hermann adds, “Expensive is a relative word. If you are a leading and a big company then certification is cheap. For export there has to be certification for organic textiles. The main issue is trust, credibility, reliability; there should be no residue, no BT cotton, and there should be integrity in supply chain for organic cotton and suppliers.”

SuSTaINabILITy

The brands Burton and Mountain Dew have agreed to a partnership that will help push the sustainability of apparel and outerwear. Specifically, for the 2012 and 2013 product seasons, the two brands will be working together to change the way outerwear and apparel are made, by creating sustainable fabrics out of recycled plastic bottles and implementing this material into key products within their lines. The first products released in this collaboration are a line

Puma is considering the idea of making compostable footwear and apparel. After the release of their first recycled shoe earlier this year, the brand has been making a push toward sustainability. They have made and created an idea like the “Clever Little Bag” that replaces shoe boxes and is reusable; the brand has also committed to eliminate the release of toxic chemicals from product’s entire life cycle by 2020. Last year, Puma released a five-year sustainability plan and its product the Clever Little Bag. In addition to saving paper waste, the bag uses 65 per cent less paper than a traditional shoe box; the new packaging solution reduces water, energy and diesel consumption during manufacturing by 60 per cent per year.

Brands eye Compostable Apparel

Burton and Mountain dew agree to Sustainability partnership

According to The Guardian and German business magazine Wirtschaftswoche, the company is further working with its partners on designs that embrace cradle-to-cradle principles, including shoes and shirts which can be shredded and buried in the garden when the consumer decides to move on from the product. The researchers are also exploring and using old shoes to create new ones or other products like tires.

Puma is not the only brand coming up with such a concept, Dutch label OAT already has a range of sneakers that sprouts flowers when buried below ground, while OneMoment’s biodegradable slip-ons require only six months breaking down in the compost pile. In July 2011, luxury designer Linda Loudermilk also came up the world’s first compostable swimsuit.

of hand-crafted T-shirts made from 50 per cent recycled plastic bottles and 50 per cent organic cotton. For future product lines, the brands will continue to increase the number of styles that use this sustainable fabric, with the increasing demand for sustainability and especially in the industry the brands are developing apparel with low carbon footprints. The limited edition Burton x Mountain Dew tees includes three styles, ‘Apparatus’, ‘Flake’, and ‘Chairway to Heaven’.


Mybra Lingerie on Expansion Mode

Bangalore based, Mybra Lingerie is going on expansion with a new unit. The company is installing 350 sewing machines. “The new plant would be commissioned by mid December.

With this expansion we would be almost doubling our turnover which is presently at Rs. 25 crores,” states Sayilen Radhakrishnan, Director of the company.

Presently the company has a setup of 600 machines and is manufacturing vast range in bras, panties, sets and camisoles. The company is technically sound to produce world class bras. South India is biggest market for Mybra brand and besides selling in domestic market the company is exporting its brand to UK, US and the Middle Eastern countries like Kuwait, Saudi Arabia and UAE. “We are supplying to high street designer labels corset bras and garter belt sets and specialized products for a discerning consumer in London and New York.,” shares Sayilen.

Mybra Lingerie Pvt. Ltd. has also launched its product catalog “Body Expressions”. The company has introduced several new products in this catalogue like Corset Bras, Sports Bras, and Swimwear.

Bangalore-based garment manufacturer and exporter

Scotts Garments has recently entered the readymade garments market by opening its first retail store under “Inmark” brand. Scotts Garments is one of the leading garment exporter, supplying its garments to over 30 international brands/retailers in the US and Europe and has an annual turnover of Rs. 550 crore. The company has a capacity to make 2 million pieces in sportswear, denim wear, blouse, shorts, shirt, blazer, pant, casual wear per annum.

Scotts has around 30 garment factories and it claims to sell the same quality and design in

its Indian retail stores. Having worked in the international market for a long time, the company is aware of the synergy between fashion, quality and price. “We are selling fashionable and high quality garments at a very affordable price. We price garments at the store with just 10 per cent net margin of the amount we earn in export market,” says Naseer Ahmed, Managing Director, Scotts Garments.

Inmark’s plan is to redefine the price-quality-design relationship for the consumer by obtaining cost advantage from its in-house production facilities. The company already has complete backward integration that starts from making own yarn, knitting and weaving of fabrics, dyeing, and finally manufacturing of garments. Inmark plans to open 8 to 10 retail stores within Karnataka.

Scotts Garments Ventures into Domestic Retail

Apex International, a Varanasi based exporter of scarves

and stoles is going to start a new dyeing and printing unit very soon. Amit Gupta, Proprietor of the concern in conversation with Apparel Online said, “We are getting good demand for our products in new markets like South America, especially in countries like Argentina and

dress material from our new facility.” As far as printing is concerned, the company is going in for manual screen-printing with plotters because Varanasi city is not getting enough service support for digital printing, claims Amit.

Established in 1991, Apex International having 50 power

looms is manufacturing 5,000 metres of silk blended fabric per month. It is also having a sister concern called Manglam, which is engaged in exporting silk and embroidered fabrics. The company is doing business of around Rs. 2.5 crore per year, which it expects to more than double once the expansion is fully operational.

Apex International coming up with new Dyeing and Printing house

Brazil. So we decided to go in for expansion to add value to our operations. Our new dyeing and printing unit is currently under construction and production will start by March 2012. Initially our dyeing capacity will be around 30,000 metres, which will be enhanced later as we get feedback from our buyers. We will also export

INDuSTRyWIRE

Amit Gupta


who have committed to give orders to generate work. The company also aims to give free education to their children, steady employment, and health insurance and crèche facilities. The International Rotary Foundation is backing Jhoole by providing 250 machines, which costs around 2,10,000 USD and other fund raising activities. Also, with the countless efforts of the Executive Director of the company, Hannah Warren, there are other few American social organizations which are funding the whole project. “We have acquired 5 acres of land in Maheshwar and the construction work will start by February next year. Initially we’ll manufacture 500 T-Shirts per day and after 4 months we’ll further increase the production quantity up to 1 lakh T-Shirts per month. In future, the total costs of the project will be of around 2 crores USD and production capacity will be 3 lakh T-Shirts per month,” concludes enthusiastic Vikram.

Jhoole, a Garment manufacturing Mission with a Noble Cause

While most of the big export companies are

opting for CSR nowadays to add a feather to their already distinguished cap, there are a few unknown names that are doing their entire business for the social cause and ‘Jhoole’ is one of them. Based in Maheshwar, a town situated in district Khargone, 91 kilometres from industrial hub Indore, Jhoole is an eco fashion ‘social enterprise’, a non-profit business designed to

benefit people living in poverty. Those stuck at the bottom of the textile supply chain often live in conditions akin to modern day slavery. Jhoole believes in the power of social enterprise to battle these injustices in direct, tangible ways. Their goal is to alleviate poverty as much as possible by giving good living wages and profit shares to the artisans and field labourers who create the products as well as investing in social initiatives that benefit their entire community.

Spurred by their success, Jhoole is all set to add a new garment factory next year. Talking to Apparel Online, Vikram Singh Chauhan, Director of the company said, “We have given training in various skills of textile production like sewing, embroidery, weaving, block-printing, etc. to 250 unemployed women who come from scheduled caste, tribal communities and underprivileged section of the society, providing them with alternative work opportunities. For this purpose, Pratibha Syntex, a company already respected for their social initiatives and ethical business practises is giving us their full support from technical guidelines to free training and providing fabrics, they also assured us of at-least 1 lakh T-Shirt orders after completion of the factory.”

The company is also getting support from international zorganizations like EJF (Environment Justice Foundation) and Provogue,

INDuSTRyWIRE

Vikram Singh


The TSCA puts strictures on retailers and manufacturers doing business in California

that have worldwide gross receipts in excess of $ 100 million to take position on the issue and share their efforts to monitor and ensure that their suppliers are not employing child labour or forced labour. The law requires that companies assess the risks of human trafficking and slavery in their international supply chains (through either internal reviews or third-party assessments); perform audits to confirm whether suppliers are complying with their established policies and prohibitions on human trafficking and slavery and whether such audits include unannounced visits to suppliers’ facilities; provide certifications that the materials used in their products comply with the laws regarding slavery and human

trafficking of the country or countries in which they do business; implement internal accountability standards and procedures for employees or contractors who fail to comply with the company’s policies and prohibitions regarding slavery and human trafficking; and train company employees and managers involved in supply chain management on the risks associated with slavery and human trafficking.

Legal analysts in the US have pointed out that the so-called controversial ACT is in fact not as strong as it is being made out and only requires companies to disclose the extent of their efforts (if any) to address these supply chain risks and does not impose any additional requirements with regard to the implementation of specific policies, procedures or prohibitions. It is argued that companies could ostensibly

New Law to make Retailers Accountable for Labour Issues in the Supply Chain‘transparency in Supply Chains Act’

For years it was the responsibility of the suppliers in the global supply chain to ensure that compliances with regard to labour related issues were in place, now the pressure is mounting on retailers for greater accountability. The first state to directly take the ball into the retailers court is California with their new regulation ‘Transparency in Supply Chains Act' (TSCA) to be operational from January 1, 2012, wherein retailers and manufacturers are required to begin posting on their web sites disclosures of efforts they have taken to assess the risks of and eradicate human trafficking and slavery from their supply chains. Companies that do not have web sites will be required to send written disclosure statements to anyone that requests them within 30 days of receipt of a request. A similar federal law is under consideration and could impose disclosure requirements nationwide.

Indian garment industry has been repeatedly under fire from the US Department of Labour with regards to child labour or forced labour. Taking the issue seriously, the AEPC over a year ago initiated work on ‘Disha’ (Driving Industry Towards Sustainable Human Capital Advancement), a compliance programme that is now ready for implementation.

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comply with the TSCA disclosure requirement by merely issuing a statement that they have made no efforts at all. On the other hand some experts argue that it is the step in the right direction and the law should not be taken lightly as companies who do not show pro-activeness in improving the situation would likely draw criticism and negative publicity from the media, consumers and investors. Many companies have therefore already begun to prepare for the Jan. 1 deadline by expanding their current corporate social responsibility programs to address TSCA risks.

The International Labour Organization (ILO) estimates that 12.3 million people are trapped in forced labour worldwide. A significant number of children also work under tyrannical and unsanitary sweatshop conditions for abysmally low or no wages at all in the garment sector and embroidered textiles (“zari”). This law is particularly pertinent to the Indian garment industry, which has been under fire from the US Department of Labour with regards to child labour or forced labour and despite active lobbying and assurance by the AEPC, the garment industry appeared again on the second update of the list of goods produced

by child labour or forced labour as mandated by the Trafficking Victims Protection Reauthorization Act (TVPRA) of 2005 published on October 3, 2011. The fundamental premise of the report is important in bringing some measure of awareness to the public in general and consumers in particular on products and commodities that might have engaged at some stage child or forced labour.

AEPC taking ‘DISHA’ to the ExportersTaking an upfront position on the US DOL listing, the AEPC over a year ago initiated work on ‘Disha’ (Driving Industry Towards Sustainable Human Capital Advancement), a compliance programme that is now ready for implementation. “There is a huge compliance fatigue in the Indian apparel export industry. We would now reach out to labour contractors to remove child labour and get the supply chain of the suppliers audited so that the industry is not held ransom by our global buyers due to prevalence of child labour or bonded labour in the supply chain,” says Chandrima Chatterjee, Director, AEPC.

Disha will be coordinated and monitored in liaison with the Ministry of Textile. Global apparel buyers like H&M,

Adidas, Next were part of the team that went behind consultations while drafting Disha. Primark, GAP, M&S have had problems with their Indian suppliers in the past. Disha, essentially a faith-building exercise, will bring in rigorous third party audit programmes involving international auditing agencies in the supply chain. Post-audits and implementation of suggestions by the audit committees, factory owners can have accreditation from international agencies, which will make them competent in international business.

Disha will aid garment exporters understand and comply with global social standards and norms of International Labour Organization (ILO) pertaining to child labour and labour related aspects like health, safety and also ensure that cases of trafficking, forced labour, exploitation are identified and plugged. “Supply chain auditing will take into account the primary facility, sub-contractor, sub-sub-contractors, home-based work in villages and even slums. While small time exporters are believed to incur 5% extra cost due to compliance, it would be 1% for big export houses,” adds Chandrima. About 700 garment factories will be initially orientated for the programme.

Select City Walk Mall, a well-known shopping destination for people in Delhi, recently endorsed more than just fashion when it promoted and supported dreams of many through a fashion show “Kids on RAMP- age” which witnessed a unique ramp walk by 20 children of inmates of the Tihar Jail. The entire event was a joint effort by Pearl Academy of Fashion, India Vision Foundation and Navjyoti India Foundation to enable these underprivileged children to experience the life of their suburban peers and be encouraged to fearlessly pursue their own dreams.

The children, aged between 6 and 17 years of age, were styled by PAF students of Pearl Academy of Fashion who funded the ramp walk with their own money and donations collected from within the institute. The styling fundamentals were based on showcasing the inner strength of the children and giving them a channel of expression to boost their confidence levels.

Fashion for a Cause: Kids of the tihar Jail inmates walk the ramp

Reliance Trends banks on private brands

Reliance Trends, the apparel retailing arm of Reliance Industries, is banking on an increasing share of its in-house products to boost their bottomline now poised to enter the profit zone. The in-house brands of RT include DNMX for jeans, Teamspirit for Sportswear, Performanx for performance garments, Sparsh for ethnic wear and Pureza for premium garments and they also hold licensing arrangement with overseas labels for making their apparels in the country.

Bharti Walmart store debuts in J&K

Bharti Walmart has opened its first Best Price Modern Wholesale cash-and-carry store in Jammu. The outlet offers over 6000 items. This is the company’s ninth store in Northern India. The outlet will also share practices with small and medium retailers on various aspects including low-cost modern techniques and processes. Bharti Walmart is a joint venture between Bharti Enterprises and Walmart Stores for wholesale, business-to-business, and cash-and-carry operations in India.

Provogue makes Retail exit

Provogue India has exited the discount retail business and has sold its troubled brand Promart to Vemb Lifestyle for Rs.90 lakh. Promart Retail India will now reopen under the new management. Started in 2007, Promart had a store each in Ahmedabad and Indore, but caught in the mist of the financial crisis of 2008 with large inventories and high overhead costs the owners were prompted to make an exit.

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London, the newly declared fashion capital of the world, recently organized its first garment sourcing fair, the London Garment Expo, to mixed reviews. As official media partners, Team Apparel Online were special invitees to the inaugural event which was dominated by participants from India with 32 exhibitors. The team interacted with buyers, exhibitors, visitors and the organizers to analyze the undercurrents of the UK market and the growing acceptance of India as reliable sourcing base. Many interesting angles emerged…

Buyers Looking for Reliable Partners

First Ever London Expo

R M Marshall from R M Solutions, looking specifically for more work wear suppliers, and dressy garments in corporate wear

Margie Gormley with associate representing Fox and Bear brand and her boutique in London by the name of Camden Thrift Store

Conducted in the Olympia grounds of London city, by Perfect Management London, there was

little to fault on the execution of the event, but still many felt that the event lacked the glamour of a major sourcing event befitting of London. The visitation at the event was also not as good as expected and most attributed the low footfall to slow market conditions. On one hand buyers were expecting to see a larger number of suppliers from allover the world, while on the other the exhibitors had to be content with maximum visitation from small wholesale or boutique buyers, with no fixed orders.

One bright spot for Indian participants was the growing inclination of international buyers to work with Indian players. “We love what India has to offer and would like to source from the country that is why we are here to search some new garment manufacturers. We are focusing on textiles with a lot of print and colour, for both men’s and women’s wear. A-line dresses, tunics, for day wear is

mainly what we are looking at in terms of silhouettes, as both our boutique as well as the brand is focused towards a vintage style clothing, including prints and basic contemporary wear,” said Margie Gormley, representing Fox and Bear brand and her boutique in London by the name of Camden Thrift Store.

Adding onto the strengths of the Indian market, Grace Cooptaha from Tomabangsaufi in Malaysia said, “We would like to source our bead and sequin work with some embroidery from India, as there is no comparison to the quality of handwork available in India. We are also looking for nice silk because we make sarongs for the Malaysian and Indonesian market where we mix traditional techniques and elements from every culture, with a little contemporary touch to make it more global for which I am specifically looking at tribal prints, embellishments and different colours from India.” Commenting upon the fair, she added, “London garment expo needs to develop to the level of London Fashion Week, including their brochures and sponsors


so that it makes it a must visit event, for which the organizers need to be more creative. London is a big city with a lot of serous and extravagant fashion which leaves the organizers with no excuse to not be creative.”

Nicole Watkinson from the Design Atrium in London, who was representing her new startup brand in women’s wear for 25 years to 40 years old women particularly, liked the detailed trims that India is showcasing at the moment, specially the application of laces as trims along with general applications of the cotton fabric. “In times of recession, when the market is flooded with lower price garments we are looking the other way by trying to build a brand that is high on respect, high fashion and more quality ,which becomes a bit more different than what is already available right now. Also, we want to cater to more new and specific markets such as mother and baby with more fashionable products with greater design orientation. In terms of quantities we are looking at only 500 pieces but high on quality in a line of 5 to 10 garments with 2 to 3 fabrics in total,” said Nicole. Commenting upon the fair she said, “We think there should have been more variety of countries participating, especially from Turkey as we predominantly only see Indian participants here.”

Throwing light on the image of India as a manufacturing base for international buyers, Vik Kumar, Channel Manager of V Amici, an online shop that caters to formal shirts for men’s office wear, in moderate quantities of 1000 pieces said, “I wish to source good quality from India as I personally want to present to the UK market that India is not what it used to be 10 years ago when the garments used to shrink and loose colours. But building confidence for Indian products in the Western world is still quite hard, though brands like Superdry selling products that are made in India, is surely changing the country’s image, but we need to further build on it.

faShIONbuSINESS

Good prices and good quality is what will make India succeed in the nearing times.”

Explaining the lack of business that took place at the fair from the buyer’s end, Marti Borthwick, Sourcing Manager of The Edinburgh Woolen Mill, Scotland said, “Most of the retailers are more interested to see what is on offer rather than placing orders directly. They want to understand what new products, techniques are available that they don’t have, what are the looks that are coming in the next six months and opportunities that they can have for themselves and therefore such fairs are more of relationship building for us. For us as a company, we deal both in menswear and women’s wear.”

A regular visitor to IIGF, Karen Hutchings, Director of Goose Island, was present at the fair looking for new manufacturers. “It is very unusual to have an Indian apparel show in UK, so we came here to support the effort. We are looking for some new manufacturers for ladies wear, with good designs, cuts and quality; with some amount of embellishments in sequins, but are not placing orders at the moment. Working with India has been a good experience in terms of pricing, quality and deliveries.”

Buyers, not only from boutiques and brands, sourcing fashionable goods, but from more focused product areas also visited the fair. R M Marshall from R M Solutions, which works closely with the aircraft industry, was looking specifically for workwear suppliers and corporate wear, which included smart uniforms for cabin crew and blouson jackets for corporate wear. Another buyer Marie Summers from North of England and Director of Timeless, which is an international production house doing shows for corporate events and theaters, was looking to source costumes and materials in smaller quantities of 100 to 200 pieces. From India the company wishes to take back sequined fabrics, embellished

garments and rich textiles like silk for which they were looking to find some new manufacturers.

Exporters look for new directionsMost of the exporters complained about the minimal footfall and unanimously agreed that reasons like recession, lack of proper publicity and advertising

throughout the UK market and absence of an authentic buyer database with the organizers led to a slow response. Rajnish Chaddha, Owner of Rohan Inc., stressed on the fact that AEPC should operate on an updated database that would help the Indian delegates in a much better way in the future. “This fair was an opportunity for us to come

It was obvious that there is an increased demand from global players to work with India, but countered by the lack of platforms and an authentic database from where the buyers can meet and know about genuine suppliers. While embellishments, cotton, bead work, beachwear and dresses still seem to be the favourites sourced from India, the general sourcing trend has shifted to simpler shapes and individualistic designs rather than printed and jazzy ones.

Vik Kumar, Channel Manager of V Amici, an online shop, believes that good and good quality is what will make India succeed in the future.

Nicole Watkinson from the Design Atrium in London particularly likes the application of laces as trims from the Indian subcontinent

Grace Cooptaha, from Tomabangsaufi in Malaysia looking for bead and sequin work with some embroidery from India


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back into the UK market after 15 years, but I could not see any big buyers and apart from posters and banners put up in the tube stations no other publicity effort was visible, which was disappointing. Some old buyers who already work with India were not even informed about the fair.”

“The main reason for the slow footfall is the recession both in the US and EU,” stressed Swati, Director, Khemka Klothing who added further, “We used to do a lot for American market, but two years back the market came down, we expected it to recover this year but we have not seen any signs of recovery yet. Even the European market which was doing well previously has come down by 20% and our business itself has been hit by 20%, from last year.” Added, Rajni Seth, Merchandising Manager, Rahul Fashions, “The recession has affected the apparel business in a big way as buyers are asking us to work for lower prices and earlier we were getting orders for 5000-10,000 pieces from big brands, but now those quantities have been reduced to 1000-2000 pieces from the same buyer. The brands are not keeping stocks and the order cycle has also been affected, for instance earlier we were producing styles in a rotation of about 10-20 styles per month, but now we are making only 1 or 2 styles in a month.”

Many exhibitors from India were entering the UK market for the first time and were looking to build contacts and find new opportunities in London. “The response was slow with visitation mostly from small buyers, which is only a tiny percentage of our business. London was never a focus market for us so I am hopeful to tap business from UK,” said Nikhil Thukral, Director, Maharana of India.

With business being affected and a general slowdown hitting the profits, the emerging trend of small buyers seems to be the new future of apparel exports. With some serious orders of 500-800 pieces coming from small buyers, who aim to grow in times

to come, exporters should now also concentrate on the small buyers as Rajni believes, “that they ask for really cheap prices, give late approvals and they don’t understand the seasonal problems and if not services quickly move on to China.” Supporting the thought even Swati said, “We should now look and support the small buyers as they might turn into volume business for us. Big factories usually don’t follow this practice, but as we have come down to orders ranging from 1000-1500 pieces all the buyers are welcome.”

With some exporters willing to take small orders, other players like S K International and Swati Exim still aim to tap the big players. “We don’t cater to the small buyers as it makes the whole process more expensive and people are not ready to pay the price. Also this was not the right time to hold the exhibition with the recession going on and no clear season being specified for the collections,” reasoned Shashi Nangia, MD, Swati Exim. “Small buyers in the market are not really a new trend, they have always been in and out of the scene, and it’s just that earlier not many used to entertain them, but now due to the slack in orders from bigger buyers, exporters have started entertaining them as well. But our setup is such that we can’t really entertain the small buyers as the minimum quantity order that we take is of 1000 pieces,” added Tejal Patel, Director, Paras Industries.

Working even with the smaller buyers seems to have taken an ethical and green pathway now. In UK, buyers are demanding test reports and SEDAX certifications. Supporting this observation Rajni states, “The buyers are really strict about the test reports and compliance issues now, compliance in fact have been really important for the past four years now. Even the small buyers are looking for compliant organizations as their Government has asked them to work only with organizations that are compliant.”

Most of the exporters complained about the minimal footfall and unanimously agreed that reasons like recession, lack of proper publicity and advertising throughout the UK market and absence of an authentic buyer database with the organizers led to a slow response.

Swati, Director of Khemka Klothing

Shashi Nangia, MD, Swati Exim

Rajnish Chaddha, Owner of Rohan Inc.

Nikhil Thukral, Director at Maharana of India

Hitesh Sadh, Director of S.K. International

Rajni Seth, Merchandising Manager at Rahul Fashions


Peter Jones has launched ‘Peter Jones Collection’, which

is a range of shirts, ties, cufflinks and socks. The range is a new venture as many people waned to purchase the stripy socks, the distinctive cufflinks and ties among other things that the star

had worn during his appearance on BBC2’s Dragons’ Den program. Talking about his collection, Peter said, “I have received hundreds of enquiries, mostly about the socks so I launched an initial range of the socks last year, and sales have gone through the roof!”

‘Toy Story’ on the fashion runways

New menswear line by Peter Jones

Characters from the very popular Pixar animation

movies, Toy Story, including Buzz Lightyear, Woody and the Aliens have been featured on a new “Toy Story” fashion line from Bossini of Hong Kong. Photos on Bossini’s Facebook page show off the new line, which contains dresses, men’s shirts, kids’ costumes, and accessories. Although the use of these characters is nothing new, this line has been priced as high as $ 1,000 per alien tunic. From the colour blocking to the pockets, it’s both trendy and edgy.

Fashion File

Among all the soft pastel tones, floral patterns

and flowy silhouettes, a very structured and geometric look is now emerging for the upcoming seasons, seen prominently on the runways. Linear geometric prints seem to be the new extension of the colour-blocking trend. Mostly coloured in bright hues and futuristic looking shades, these prints impart an urban-warrior look. Being very versatile, these patterns can be used on any kind of fabric, including knits, for a body-conscious shape in the winters. Amongst many designers, Pringle and Holly Fulton’s recent summer collections are the perfect examples of geometric prints done in a variety of silhouettes. These edgy prints, when paired with solid colours or basic prints such as stripes and polka dots, can find their way into everyone’s wardrobes, be it summer or winter.

Geometric Prints

Marks & Spencer forays into Online plus size clothing range

The ‘Plus winter collection’ by Marks & Spencer is aimed at plus size shoppers, which has been launched exclusively online. The collection includes dresses, tops, skirts, trousers, suits, cardigans

Primark at Selfridges

and coats, made from fabrics like satin, velvet and sequins. With sizes ranging from 20-28, the collection is priced between GBP 9.50 to GBP89. M&S dresses buyer Danielle Hill said, “There is always the classic black dress but choosing one of the more daring, eye-catching prints can speak volumes about fashion sense and can make you stand out from the crowd. Red is a key colour featured in prints and solid colours for that winter-y feel.”

Generally agreed to be the most differentiated

players in retail – Primark and Selfridges, have collaborated together, with the former opening concessions in branches of the luxury department store. This collaboration is intended to increase the footfall at Selfridges, as more people

would want to visit the new lower-priced collection, boosting Primark’s proposition on the UK high street. This mutually-benefiting deal has been so successful that Primark is expanding into a new menswear line to be sold exclusively at Selfridges, but there are no plans yet for Primark to take space in Selfridges’ flagship store in London’s Oxford Street, though the partnership could be developed further if it goes well.

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countries ruined the domestic textile industry and Government had to spend another Rs. 2000 crore for introducing a relief package for the affected textile industry. “The re-introduction of export incentives for raw cotton would again lead to a similar expenditure for the Government for the benefit of a few cotton exporters, though the arguments will always be adduced in the name of farmers,” cautions Arumugam.

Mukesh Tyagi, Director, BST Textile Mills, producer of cotton yarns believes that the Government policy in last two years was not correct. “When the Government tries to fix quota in cotton it unnecessarily ushers race for cornering a stock, sometimes without any real market demand. This creates needless frenzy in the commodity market. I personally feel that when there is genuine demand in a commodity like cotton and yarn, then only the entire chain from spinning, fabric and garment manufacturing makes profit, otherwise not,” he says.

The textile players agree that is essential to allow export of surplus cotton. But it is of utmost importance to ensure that we do not put our cotton cheaper in the hands of our competing countries like China, Bangladesh and Pakistan, by providing incentives on cotton exports. “If we do so, we would be destroying the viability of the Rs. 1 lakh crore textile investments made in our country, its huge employment potential and would in reality be subsidizing creation of jobs in our competing countries, while destroying employment opportunities in India,” adds Arumugam.

Government policy on cotton exports has been erratic feels Mukund Choudhary, Director, CLC Group. According to him the cotton yarn export which has now been corrected and brought under OGL (Open Game License) has led to very big damages in the industry. Government’s policy on cotton should also take the interest of the farmers into account to which everyone agree. “The Government just needs to

TEXTILEuPDaTE

Firm up Cotton Policy says Industry

Currently, demand on an aggregate global basis of cotton based textile products is on the decline especially in the US. Most of the brands and retailers are now exploring options of blends after the cotton prices broke all time records last year. While the cotton prices have come down, this too brought ripples as it led to severe inventory losses across the industry due to prices falling by more than 50% in a short span of 3-4 months. Nobody has emerged a winner from the roller coaster fluctuation and it's high time the Government comes up with a viable policy on cotton which serves the interest of the nation as well as the entire value chain. Apparel Online compiles the views of various industry members on cotton and the way forward…

Ltd. says, “Cotton exports should be allowed only from December 1 of each year, once arrivals pick up across the country. The balance stock should be drawn out on October 15 every year and the exportable surplus determined accordingly. This surplus should be allowed for exports from December 1 in a calibrated fashion every month. Otherwise countries like China buy the cotton in the start of season in huge quantities leaving the industry struggling for cotton in the initial period despite having a big crop. Calibration should continue till April next by which time 80-90% of the crop is over, after which whatever balance surplus remains can be opened to exports on a first-come-first-serve basis.” According to S.V. Arumugam, Managing Director of Bannari Amman Spinning Mills, in the year 2008-09, when the Government had provided export incentives for raw cotton, this led to an expenditure of around Rs. 1000 crore by way of incentives to cotton exporters. Such incentivized exports of raw cotton to competing

India should not put its cotton cheaper in the hands of its competing countries like China, Bangladesh and Pakistan by providing incentives on cotton exports

It is indeed sad that India despite being a leading producer of cotton is facing such trying times.

The Government has failed to make a National Fibre Policy due to which there is no clarity to the industry regarding the cotton policy and the policy with regards to cotton exports keeps changing now and then leading to a lot of volatility and risk in the system. The textile manufacturers strongly feel that the Government needs to protect the interests of both the farmers and the industry. While the farmers have a Minimum Support Price which assures them of no losses, the industry has no such mechanism leading to regular losses time and again.

The textile industry tired of the uncertainty has a lot of suggestions to bring to the table for creating a win-win situation for all. As of now the feeling is that while the yarn, textile and garment producers are all on the same side, farmers and ginners are on the other side leading to clash of interest. Sharing his opinion on the issue, Sanjay K Jain, Managing Director, TT


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Cotton exports should be allowed only from Dec 1/year once arrivals pick up across the country. The balance stock should be drawn out on Oct 15/year and the export surplus should be determined. This surplus should be allowed for exports from Dec 1 in a calibrated fashion per month

Exports of cotton cannot be stopped as it would hit everyone including the farmers but it should be allowed in moderation. When the cotton price is low, the fabric cost too is low so in that scenario no one is making money except the merchants

ensure adequate stock to use ratio in the country which will cover everybody’s concerns,” he comments.

Supporting the current policy on OGL, Mukesh feels that the registration of contracts is necessary with genuine LC or advance payment. OGL helps to know how much cotton is going outside India and it does not create any artificial demand as in case of quota. The buyers abroad know that they can buy Indian cotton at any time so there is no mad rush as in case of quota. “Since entire quota last year finished in December, it led to a severe jump in global cotton prices. In March 2011 it reached an unprecedented level and then crashed to 50% from peak,” states Mukesh.

Supporting the exports of cotton, Rahul A. Patel, Managing

Director, BVM says, “Exports of cotton cannot be stopped as it would hit everyone including the farmers but it should be regulated and should be allowed in moderation. When the cotton price is low, the fabric cost too is low so in that scenario no one is making money except the merchants. As it is cotton prices are governed by international rates.”

The industry per se feels that when cotton prices have crashed, the buyers will delay their decision on garment and buy bare minimum; they will wait for the commodity and yarn price to settle down and then take buying decisions. “Declining quantities are a very big worry, part of this could be attributed to a lower demand but certainly there are also orders lost to competing countries.

the industry experts feel that a steady demand in raw cotton yarn without any trade distortion like quotas is best situation for the entire value chain

Sanjay K Jain Managing Director, TT Ltd

Rahul A. Patel Managing Director, BVM


When the Government tries to fix quota in cotton it unnecessarily ushers race for cornering a stock, sometimes without any real market demand. This creates needless frenzy in the commodity market

A lot of demand destruction of cotton garments has happened. International brands made a shift to polyester and blends as they found the cotton prices too high. Government has to come up with a more proactive approach

Government policy on cotton exports has been erratic. The cotton yarn export which has now been corrected and brought under OGL (Open Game License) has led to big damages to the industry

The garment industry needs to become more competitive while the Government also needs to provide a level playing field,” opines Mukund. Similar views came from Mukesh, he says, “The buyers definitely have postponed their decisions on garment buying or have reduced quantities. Now from December onwards when market will settle down, they will come back.” Shrikant S. Pareek, CEO, Ashima Ltd. also feels that the international as well as domestic demand of cotton products have come down. “A lot of demand destruction of cotton garments has happened. International brands made a shift to polyester and blends as they found the cotton prices too high,” avers Shrikant.

Something definitely needs to be done and the Government has to come up with a more proactive approach taking the industry into confidence to find a long-term permanent solution to the cotton crisis.

International Conference on Manmade Fibre textiles

TEXTILEuPDaTE

The International Conference on Manmade Fibre Textiles recently took place at IIM Ahmedabad campus. The conference was attended by many industry players across India. The industry stalwarts emphasized on the fact that one needs to keep eyes and ears open to the changes in the global textile scenario.

The speakers highlighted on the fact that land available to cultivate cotton is going to fall, with the same land competing with other remunerative food crops. Secondly, water consumption across the whole cotton textile value chain is also very high. This puts a question mark on long-term viability and prospects of the production of the natural fibre.

Global per capita consumption of textile fibres is 11.5 kg, while in India it is 4-5 kg. Manmade fibres will also be in very good demand from the burgeoning technical textiles sector. The industry experts predict that two fibres in

particular will dominate the global textile sector – polyester and viscose staple fibre.

S.N. Modani, Managing Director, Sangam Group spoke on textile industry in Bhilwara. He said, “There is a huge scope for technical textile and apparel sector manufacturing in Bhilwara. There is a sense of optimism in the industry and textiles sector has now become a ‘sunrise’ sector.”

Thanking the Gujarat Government for helping in boosting the technical textiles sector he added, “Between 1980 and 2010 cotton output had grown by 81.36 per cent while manmade fibre production had grown by 367 per cent. The ratio of consumption of manmade fibre vis-à-vis cotton fibre in India is 39:61, while globally it is 60:40. In 2008-09, the growth rate of synthetic yarn was 7 per cent, in 2009-10 it declined to 2.06 per cent, while between April and June 2011 it decelerated to (-) 10.18 per cent.”

The conference also highlighted the fact that China and India account for 78 per cent of global textile production, with China

accounting for more than 6 times that of India. This conference will help to plan the future course of the manmade fibres textile industry.

Maheswar Sahu, Principal Secretary, Industries & Mines, Government of Gujarat stated that in the present scenario, the best game will be played when both, cotton as well as manmade fibres performs well. It is well known that cotton grown in Gujarat is sent to Tamil Nadu for spinning. The same yarn comes back to Gujarat for producing fabrics. “With the impetus given by Gujarat Government, I hope 2-3 million spindles will be added in the next 3-4 years in Gujarat. However, value-added in the Indian textile industry, will come from the technical textiles sector. In the next 5-6 years, there will be more than 5-6 million automobiles per year, rolling out of the State. This will create a big opportunity for the segment of technical textiles sector,” he stated.

Mukesh Tyagi Director, BST Textile Mills

Shrikant S. Pareek CEO, Ashima Ltd

Mukund Choudhary Director, CLC Group


H O M E F A S H I O N F U T U R E

Pardesh adds China in its Buyer’s ListGrowing at 25-30% YoY

Founded at the turn of the century in 2000, Pardesh Agencies was created with the vision to establish a company which would become a leading expert in sourcing home and lifestyle products from India. Eleven years later, Pardesh is sourcing for leading brands, retailers, wholesalers in the United Kingdom, Europe, North and Latin America, Asia and Australia. The buying office has expanded reach to include China in its buyers list just six months back for high-end home furnishing products. Martin Graham, CEO, Pardesh Agencies who came to India 20 years back as a student at Shanti Niketan, Kolkata from UK, decided to make India his home as he was charmed by India's size and diversity of cultures. In a one o' one interaction with Team Apparel Online, he shares that ‘pressurized sourcing' is becoming a norm in the present global economic scenario and how one can maintain consistent growth despite not so favourable economic conditions.

Sourcing primarily from the organized sector, medium to high-end products, Pardesh’s

focus is on bed, bath and kitchen items in soft goods category which is also a bigger focus for the agency than hard goods and artifacts. Till 2008-09, the agency was focusing more on the European market, however recession taught a lesson to many including Pardesh to spread their market wider to balance fluctuating market condition in different regions/countries. It was then that the agency decided to spread its wings beyond Europe. “Rather than keeping all the eggs in one basket, we started developing non-Western markets like South Africa, Asia Pacific and Asia. We also diversified into hospitality business to de-risk our

operations as in inflationary or recessionary times consumers may keep check on their spending but businesses like hotel industry would not cut on their spending as investing on décor items is an investment for future growth for them and not expenditure as in the case of retail customers,” opines Martin.

Working towards plan, six months back Pardesh entered the China market where it is catering to a very big home furnishing retailer having 1000

stores, the retailer has high-end clientele.

“We are sourcing cushion covers and throws with a lot of value additions for this client,” shares Martin. Talking about China, Martin

shares that though Chinese domestic

consumption is increasing

and with per

“Our business as agents is not easy; margins are becoming thinner and thinner, commodity rates are rising, core inputs are getting expensive, labour costs are increasing and with all this, buyers come and say that they want cheaper prices than last year; what can we do!”

Martin Graham, CEO, Pardesh Agencies


H O M E F A S H I O N F U T U R E

capita income also increasing, the purchasing power of the consumers is on the rise; however, still the country does not source anything which they are capable of manufacturing within the country. “Chinese sourcing is going to increase as the country is now concentrating on developing the domestic economy though exports are still important, but domestic market is rapidly growing. They have huge buying power but they are still very conservative as they are used to sourcing within their country as the country itself is very strong in manufacturing,” avers Martin who is looking at increasing his sourcing share from the country.

According to Martin, 2012 is going to be a difficult year mostly because the financial crisis in Western countries which includes the US and Europe, is not going to ebb as quickly as many may wish it to do. “Since September the retail growth has slowed down, however America would recover faster than Europe as it’s a single nation, whereas Europe has 17 nations which means different and diverse approach towards economy,” points out Martin who feels that he would still be on the safer side because he is working with strong economies of Europe namely France, UK, Germany which would be less affected by recession.

Despite its focus on Europe, so far Pardesh has not experienced any impact of recession and the buying agency is on target in terms of growth rate. “Pardesh is growing at CAGR 25-30% YoY and over last two years we have been looking at this growth. I hope it remains that way; so far so good,” states Martin who is looking at hitting the US $ 22 million mark in the coming financial year. “We

want to maintain the 25-30% growth YoY for the next few years. If we maintain this growth then in two years we will touch US $ 30 million in our top line,” he adds confidently.

Yet, though the agency is growing, Martin expressed his concern over the existing market scenario. Talking about shrinking margins he says, “Our business as agents is not easy; margins are becoming thinner and thinner, commodity rates are rising, core inputs are getting expensive, labour costs are increasing and with all this, buyers come and say that they want cheaper prices than last year; what can we do!” reacts Martin. He feels that it’s important to keep tight control on costs, however the current inflation rate which is at 9 to 10% has jeopardize all the strategies. “If we give 10% salary hike to our employees they are not happy as it’s just compensation to inflation and not a reward to their performance,” opines the concerned Martin according to whom in India almost everyone’s top line is up by 25 to 30% but the profits are down by 20 to 30%.

Diversifying and strategizing is the best policy to survive feels Martin. So far the agency has confined its sourcing within India but rising prices are compelling him to look at cheaper options as well. “We are looking at sourcing knitted furnishing items from Bangladesh, basically low end-mass market products, the country still has most competitive pricing in the world. However all said and done we will keep our focus on India as it’s our strength and core competency,” confides Martin who is looking at developing non Western markets more as they are emerging economies with rising per capita income and purchasing power.

Pardesh’s sourcing comprises more of soft furnishings like bedding and bath though gift items are also in these sourcing basket


Imports of Apparel into EU continues to Boost with 14.39% Growth in Value and 7.42% Rise in Volumes

EU Import Analysis – Jan.-July 2011

Floods take toll on textile and clothing industry in ThailandAccording to the Thai Garment Manufacturer Association (TGMA), more than 160 companies in Thailand’s textile industry are now reeling from widespread flooding which has crippled the country over the last few weeks. About 22 textile companies and 142 garment companies in Thailand have been hit by floods; in fact, the floods have stopped around 25% of the country’s garment production, with some firms unable to continue because of the broken supply chain.Production is expected to be delayed for a month because of shortage of materials. This is because flooding has been especially serious in the Phetchakasem, Bang Kae, Aom Yai and Aom Noi areas which are home to concentrations of upstream weaving, bleaching and dyeing companies. Many have had to close because their waste-water treatment systems have been submerged.

Garment exporters see little gain with the falling rupeeThe rupee has fallen 14.3 per cent this year, to be the worst performer in Asia. On the face of it, a falling rupee is likely to give a definite edge to exporters. But except for IT and diamond sectors, not everybody is so sure-footed. Garment exporters see limited gains from the depreciation of the rupee as many have hedged their exposure at lower levels. “Most big exporters have taken forward covers at around Rs. 48 levels and so there would not be any significant gains,” says Premal Udani, Chairman, Apparel Exports Promotion Council (AEPC). “Poor demand, especially in Europe, has also added to their woes.”However, exporters concede that the weak rupee has made their products a lot more cost competitive vis-à-vis rivals such as Bangladesh and China.

SNIPS

Even though orders have started to trickle in from

Europe, both the exporters and buying offices are skeptical on how the market will play out over the next six months. While many feel that this is a temporary phase and the situation will stabilize in a month or two, others are not so confident. Many of the industry watchers have expressed that the global economic order has changed forever and the sooner the industry accepts that reality, the faster they will be able to start strategizing to plan for substance and growth in the future.

It cannot be denied that Europe is still a major market for the Indian garment industry and many are waiting with abated breath for the FTA with the European Union to be signed. In fact at the starting of the year, many political and industry leaders had opined that the agreement would definitely come through this year, but obviously there are matters and concerns on both sides that still need further deliberations. If one country has really benefited from bi-lateral agreements, it is Bangladesh. This small country has cornered a significant share in global exports, thanks no doubt to the many benefits that the garment export industry enjoys both from its supportive Government and its status as a ‘least developed country’, which have given it an edge in negotiating for trade advantages.

It is not surprising that, while many countries struggle, Bangladesh has shown consistent growth. In the seven month period under review, the country registered a whooping growth of 41.91% in value and 14.81% in quantities. The average UVR also increased from Euro 9.27 (per kg of fabric equivalent) to Euro 11.46

(per kg of fabric equivalent). However, some buyers who are sourcing from the country have indicated that despite growth many factories are having spare capacities. Though this seems like a contradiction, the confirmations will only come in when statistics for shipments manufactured during this period are compiled. As of now the country certainly looks to be on a growth path.

In the meanwhile, the EU continued to witness growth in its imports of apparel and during the review period values increased 14.39% while

quantities grew 7.42%. Not surprisingly the average UVR of EU imports also increased from Euro 14.62 (per kg of fabric equivalent) to Euro 15.57 (per kg of fabric equivalent). Exports from India grew 17.46% in value though volumes declined (-) 3.88% in the review period. The average UVR for Indian exports to the EU was Euro 21.39 (per kg of fabric equivalent), up from Euro 17.50 (per kg of fabric equivalent) in the same period last year. At current levels, India’s UVR is higher as against the EU average.

tOtAL AverAGe Uvr Of APPAreL imPOrts — JAn.-JULY 2011

World China India B'desh Sri Lanka Pakistan Vietnam

2010 14.62 13.00 17.50 9.27 16.71 8.31 15.24

2011 15.57 13.10 21.39 11.46 17.53 10.05 16.64

eU GLOBAL APPAreL imPOrts — JAn.-JULY 2011

EXPORTSTaTISTICS

country/category

Jan-July- 2010 Jan.-July-2011 % increase / decrease

Qty value Qty value Qty value

WORLD

Knitted 1244.1 16401.96 1285.79 18674.07 3.35 13.85

Woven 1078.43 17545.72 1209.07 20160.01 12.11 14.90

Total 2322.53 33947.68 2494.86 38834.08 7.42 14.39

CHINA

Knitted 522.30 6415.82 529.83 6946.78 1.44 8.28

Woven 589.50 8042.35 684.13 8954.91 16.05 11.35

Total 1111.80 14458.17 1213.97 15901.69 9.19 9.98

INDIA

Knitted 82.38 1159.92 79.44 1335.03 -3.57 15.10

Woven 71.55 1534.39 68.52 1829.82 -4.24 19.25

Total 153.94 2694.30 147.96 3164.85 -3.88 17.46

BANGLADESH

Knitted 237.26 2084.81 266.27 2898.45 12.23 39.03

Woven 97.5167 1018.58 118.08 1505.63 21.09 47.82

Total 334.78 3103.39 384.36 4404.08 14.81 41.91

SRI LANKA

Knitted 22.42 371.49 21.88 379.35 -2.38 2.12

Woven 19.38 327.03 20.07 356.13 3.53 8.90

Total 41.80 698.52 41.95 735.48 0.36 5.29

PAKISTAN

Knitted 30.84 218.44 35.65 302.78 15.58 38.61

Woven 35.65 334.06 38.93 446.85 9.22 33.77

Total 66.49 552.50 74.58 749.63 12.17 35.68

VIETNAM

Knitted 15.68 193.41 17.39 245.30 10.90 26.83

Woven 29.28 491.96 35.86 640.88 22.45 30.27

Total 44.96 685.37 53.25 886.18 18.42 29.30Qty. & Value in mn Kg & Euro


EXPORTSTaTISTICS

With the Japanese economy staying steady and China becoming expensive as a manufacturing base, Indian exporters are looking to increase penetration into the country…

In the first nine months of 2011, apparel imports of Japan were up both in terms of value and volumes of 14.04% and 8.18%, respectively. The upward movement was registered in both the knitted and woven segment with increase in value of 11.27% and 16.80%, respectively.

During the period under review, India registered an impressive increase in value of exports by 21.61% over the same period last year. Volume increase was equally impressive with 22.89% rise in the period under review.

India saw increase in exports in both the knitted and woven segment with woven emerging as a stronger category. The growth in value for woven garments was 23.60%, while the segment registered 23.22% upswing in volumes. Knitted garments on the other hand increased by 8.28% in value and 21.54% in quantities.

During the same period Chinese apparel exports to Japan saw increase of 11.30% in value of exports, while quantities were up 5.99%. The country once a leader with almost 90% share in the market is seeing less growth over the past two years.

Among the competitors, Bangladesh witnessed substantial increase in exports to Japan with 50.04% growth in value and 37.73% increase in quantities. The country made impact in both knitted segment and woven garments, registering noteworthy gains in value of 95.96% and 27.66%, respectively.

India Exports to Japan: Jan.-Sep. 2011Japan sees growth in imports of garments in both value and volumes

Men’s Shirts going strong

Men’s shirts are among the top 5 products imported by EU and an important category for Asian players. In the first seven months of 2011, the EU imported 186.83 million kg of men’s shirts worth Euro 3,281.77 million, registering growth of 3.62% in volumes and 17.43% in value during period under review.

China, as in most categories, is the biggest exporter of men’s shirts witnessing growth in values in the period under discussion. The country exported 51.78 million kg of men’s shirts worth Euro 843.54 million in the defined period. Compared to the movement of the product in the same period last year, China registered growth in values of 7.86% though volumes were down (-) 6.55%.

For India also the category is among the highest earners with exports of 18.71 million kg worth Euro 408.24 million to the EU in the defined period. The growth in the segment was 13.67% in values, though the volumes took a beating with a decline of (-) 4.49%.

T-Shirts shows huge demand

T-Shirts is among the most imported products into the EU. China, India and other sub-continental players have all raised their T-Shirts exports both in terms of value and quantity. The total T-Shirts imported by the EU during the defined period was 357.56 million kg worth Euro 5,022.42 million. This marks an increase 11.11% in value but a marginal decline of (-) 1.40% in volumes from the same period last year.

Bangladesh is leading the list of T-Shirts exporting countries to the EU, even ahead of China, which earlier was the undisputed leader of this basic category. Bangladesh exported 134.73 million kg of T-Shirts worth Euro 1,330.33 million. During the first seven months, the country raised exports by 36.54% in value and 7.61% in quantity over the same period last year.

Though India is not as big a player, the category is an important one for the industry. In the defined period, India exported 28.38 million kg of T-Shirts worth Euro 488.02 million. During the period export value increased 11.50% over the same period in 2010 while the total quantity fell by (-) 6.20%.

AppArEl Import of EU – JAN.-JUlY 2011

item-wise PercentAGe increAse in APPAreL imPOrts BY eU: JAn-JULY 2011

APPAREL TYPETotal Imports by EU

Exports to EU

China India Bangladesh Sri Lanka

Qty value Qty value Qty value Qty value Qty value

Babies Wear -0.10 15.46 -5.80 8.36 8.68 35.74 27.97 53.58 10.47 3.74

Foundation Garments 11.69 12.07 14.11 15.39 31.81 50.90 25.48 30.82 -8.07 3.14

Jackets & Blazers 6.24 17.26 -0.49 13.53 -0.27 11.51 51.90 80.15 12.53 11.89

Ladies Blouses -3.19 6.35 -14.03 -7.40 0.00 15.27 10.77 37.62 -8.10 0.78

Ladies Dresses 7.98 14.95 9.77 7.18 5.66 18.22 7.88 33.89 25.40 31.71

Ladies Skirts -2.53 4.33 -8.97 -3.10 7.82 24.53 13.85 36.39 -0.98 6.47

Legwear -0.90 11.64 -0.57 10.94 15.14 29.82 47.37 97.27 -7.52 -7.16

Mens Shirts 3.62 17.43 -6.55 7.86 -4.49 13.67 18.42 48.25 -12.01 -1.29

Nightwear -3.82 10.44 -4.93 7.13 -8.63 16.69 15.53 52.76 29.85 18.46

Suits / Ensembles 3.09 5.19 2.93 2.86 0.26 11.48 -13.35 17.15 -20.52 -25.42

Sweaters 8.90 13.03 7.22 6.20 -10.27 8.80 18.92 37.47 -12.07 -15.49

Trousers 2.29 13.84 -4.87 5.91 6.83 24.98 17.27 42.13 -1.57 4.24

T-Shirts -1.40 11.11 -11.53 -1.63 -6.20 11.50 7.61 36.54 0.66 2.32

Undergarments 4.34 22.83 0.11 18.92 19.24 48.97 34.66 71.91 19.75 26.99


The Oeko-Tex Association is an independent, third-party certifier that

offers two certifications for textiles: Oeko-Tex100 (for products) and Oeko-Tex1000 (for production sites/factories). Products satisfying the criteria for Oeko-Tex100 and produced in an Oeko-Tex1000 certified facility may use the Oeko-Tex100 plus mark, which is simply a combination of the two. The Oeko-Tex Standard 100 has been the most popular with 1931 certificates issued in China, 623 in India and 529 in Bangladesh. Not surprisingly, the global distribution of the certificate is dominated by Asia accounting for 55.7% of the total certificates issued, followed by Europe (41.2%), Americas (1.5%), Africa (1.3%) and Australia (0.3%).

India does not have a single player certified for Oeko-Tex1000, which is on the lines of ISO 14000 for environment issues. Under this certification, the company applying must ensure that at least 30% of the inputs that it uses is Oeko-Tex100 certified. The commitment required for this certification is very high and Jacob Kutty, India Manager at Hohenstein India informed that many companies in India have shown interest to be certified under the norm.

The agenda of the meeting included decision-making on the new version of the Oeko-Tex list of criteria, and internal agreement by the 15 Oeko-Tex member institutes on existing quality control procedures to ensure a consistent standard of testing and compliance with the required product quality, as well as on the question of international trademark protection for the “Confidence in Textiles” label. Another focus of discussion at the meeting was an analysis of the company audits that were introduced in 2010. In fact, monitoring is an important part of the process. “When we carry out company audits on the spot, we can clarify any unresolved issues face-to-face with the quality managers, and help the companies gain

maximum value for money from the certification process,” said Dr. Prof. Stefan Mecheels, CEO, Hohenstein Institute, Germany. It is also important to ensure that companies using the certification are stringently following the set guidelines as required by the certification.

Laying to rest concern on the misuse of the certifications by companies who continue to show the certification even after its expiry, Haug said, “We regularly update our website and with the help of the special code on the Oeko-Tex certified label any one can check whether the company using it is certified to do so.” Both the retailers/brands and the consumers are driving the trend for such certifications and they are very clued into keeping track of whether they are actually getting what they are promised.

The General Managers attending the meeting in Delhi also agreed on extending the scale of regular control testing of certified products worldwide from the current level of at least 15% of all certificates issued annually to 20% in future. In practice, in recent years an average of 18% of the certificates have already been tested at the Oeko-Tex Association’s own expense, using product samples taken from retailers. Another innovation that was introduced at the meeting was a supplement listing additional specifications and to be certified under the Oeko-Tex Standard 100, with immediate effect.

Clearly the confusion with regards to the seemingly clashing, yet similar interest of Oeko-Tex certification and REACH regulations, Haug clarified that Oeko-Tex also covers all textile-relevant SVHCs (Substances of Very High Concern) on the ECHA candidate list, including the eight chemicals added most recently on 15 December 2010 under the REACH legislation. Each Oeko-Tex certificate also confirms that the certified articles comply with the current requirements of Annex XVII of the REACH regulations on restricted substances such as azo dyes and nickel.

With a total of 11,283 certificates issued in the last one year alone to more than 9,500 companies from over 90 countries, the Oeko-Tex Standard 100 confirmed its position as the world's leading certification scheme for textiles tested for harmful substances at this year's meeting of the heads of Oeko-Tex institutes, held for the first time in India. This validates the growing importance of India as a receptive market for such certifications. “While earlier certifications were driven by buyers, players in India working for the international market are increasingly looking at the certification on their own free will to get greater access to global markets,” said dr. Jean-Pierre haug, secretary General, Oeko-tex Association.

Oeko-TexLooks At India For GrowthFirst ever General Managers Meet In Delhi

Jacob Kutty, India Manager, Dr. Jean-Pierre Haug, Secretary General, Oeko-Tex Association and Dr. Prof. Stefan Mecheels, CEO, Hohenstein Institute, Germany at the General Managers Meet

RESOuRCECENTRE


RESOuRCECENTRE

Rajasthan International

Rajesh Bihani (sitting) with all the principals, from Left to Right - R. Simmendinger (Groz-Beckert, Germany), P. Khurana, S. Sharma, S. Kanwal (All from Groz-Beckert Asia, Chandigarh) Motomaro (Director, Juki India). Dr. A. Reinfelder (MD of Groz-Beckert Asia Ltd) Shirota (MD of Juki India), F. Lancia (MD of Comel, Italy), D. Cerliani ( Director of Cerliani, Italy) & Ms. B. Lancia (Director of Comel, Italy)

(L to R) S. S. Bihani, Dr. R. C. Jain of T T Ltd., Saurabh Bihani, Rajesh Bihani, Dhananjay JajooDr. R. C. Jain of T T Ltd. lighting the inaugural lamp for the new office

Inaugurates new office on their 50th anniversaryIt was a big day for Rajasthan International, as they recently celebrated their 50th year anniversary in the apparel and textile sector of India. With the fourth generation ready to takeover, the company is standing tall among its principals, who were present in large numbers to congratulate the Rajasthan International Team on the momentous occasion.

Established in 1961, by BR Bihani, as a small office representing Groz-

Beckert in North India alone, Rajasthan International is currently being managed by the third generation represented by Rajesh Bihani, the current MD of Rajasthan International with many prestigious companies as working partners and still firmly going strong with Groz-Beckert. The celebrations were marked by the inauguration of Rajasthan International’s new and bigger office in Pitampura,

New Delhi. “The sole aim behind the new development has been the constant hunger within our family and organization to strive and expand furthermore,” avers Rajesh Bihani. Strengthening their credibility in the industry, Rajasthan International has been recipients of 12 out of 14 dealers of the year awards given away by Groz-Beckert Asia over the years.

Present at the ceremony were all the principals of Rajasthan International, like Groz-Beckert, Comel, Siliconi, Juki, Cerliani

and Kluber-Madol. Many industry clients, friends and well-wishers were also present to congratulate the proud team. The period from 2003 to 2011 has been the most progressive one for the company with all the major tie-ups and collaborations taking place during this period. “I would like to thank the industry and our principals for trusting Rajasthan International for this long, said an emotional SS Bihani, Chairman of Rajasthan International and father of Rajesh.

The occasion was an opportunity for the company to introduce the fourth generation of Rajasthan International, Saurabh Bihani and Dhananjay Jajoo, who would continue the glorious journey of Rajasthan International. Rajesh Bihani’s son, Saurabh Bihani, although still studying has already set his goals. “I will give my best and make sure that Rajasthan international is always on the path of prosperity and growth in the coming years,” he concluded.


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Takisada Looking aT sourcing Fabrics & Ladies garmenTs From india

Japan is emerging as an important market for India, more so after the

FTAs between the two countries was signed earlier this year. Among some new buyers entering the country, Japan based Takisada-Osaka Co., a wholesaler and trader of fabrics and garments is looking at sourcing from India. S. Takamori responsible for business development with India in an exclusive interaction with Team Apparel Online on his visit to India recently was very upbeat of the potential for sourcing from the country. “We are looking at sourcing fabrics from India, like khadi, silk, brocades and cotton; along with it we are also looking at suitable suppliers for ladies casual garments for young to mid age,” said Takamori.

To start with the company is looking at

placing minimum order of 500 pieces per style. “We would be giving complete details of the designs and fabric specifications, the garment converters just need to produce them,” informed Takamori.

Founded in 1864, Takisada-Osaka is sourcing for apparel companies, wholesalers, and retailers throughout Japan as well as its partners based in the United States, Africa, Europe, Australia, Southeast Asia, China, Korea, Taiwan, the Middle East and South Africa. Besides women’s apparel and accessories, the company is also sourcing night clothes, bedding and interior accessories.

“We are a fabric trading company, that sources fabrics from all over the world and also manufacture our special kind of fabrics. We started with kimono and textured fabrics, along with a few garments.

Today we are catering to brands and designers like Armani, Dolce Gabanna, Gucci, Zara to mention a few,” says Takamori who is also looking at selling his fabrics in the Indian market. “We are here to check the viability of our fabrics as well as price points, our per metre price starts from USD 8,” he adds. The company also has its own brand called ‘COTO’.

S. takamori

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