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CONTENTS

VOL. XII Issue 19

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OPTIMISM 201028Optimism – Hopes andAspirations 2010...

REGULAR COLUMNS

TRENDS 200916

THE PULL OF DIVINEContributor: PRATIBHA MUKHI,MERCHANDISE MANAGER,PURE COTTON INDIA

AO TOP 10034Register Collective Turnover ofRs. 18,673.89 Cr in FY 2008-09Projections For 2009-10 at Rs 20,744.52 CrAnalysis 2010...

MIND TREEEYES & EARS

LIGHTER MOMENTS12 INDIA CANVAS48Bhayani Plastic Enters Joint Venturewith Visconti, USA to ManufactureHangers in IndiaAccessories Manufacturers Back onTrack as Sales Grow

Editor-in-ChiefDEEPAK MOHINDRA

Deputy EditorILA SAXENA

Deputy Editor- SupplementsVINITA PANDEY

Column EditorLEELA KANUGA

Copy EditorVEERESHWAR SOBTI

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Reflections of the Year Gone by…Sustainability The Only WayForward For Players InThe Apparel Supply Chain...The Debate on Living WagesGetting Hotter… And LouderOrganic Cotton a Growth Enginefor Indian Garment ExportersIndian Textile Mills and ApparelManufacturers Take the TechnicalRoute for GrowthBankruptcy BroughtIndustry on One Platform toRegulate Buyers

India’s Exports to the US duringJan.-Oct. ’09 Sees QuantitiesIncrease 4% Even as Value ofExports Decline (-) 7.63%

EXPORT STATISTICS52

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AWARD EVENT54166 Export Awards to HandicraftsExportersConsecutive Award to Ozone International inTextile Segment for 3 Years

INDIA CANVAS44Quality, Customer Support,Innovation & Availability –4 Strategic Pillars of Wendler

IAM Mumbai Offers New SpecializedCourses in Fashion Design withInternational UniversitiesKnitwear Technology MissionLaunched in TirupurRs 25,000-cr FDI likely for TextileSector in 5 Years: Maran

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JANUARY 1-15, 2010 ApparelOnline 9

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The prices have gone upimmensely due to which we haveto raise the prices of the finalgarment. On the other hand, thebuyer is asking for lower prices.The cost of production has goneup by 20-30% which we have topay from our pockets. We havestopped taking new businessand for the one’s we arecommitted to we are completingthem but at lower margins.Palani Swamy,Vipro Garment, Tirupur

The prices of fibre and yarnhave gone up, prices of fabrichas moved up..., why should theprice of the garment not moveup? We have done our costingdepending on previous price and

all of a sudden if the price goesup, then the buyer has tounderstand that we cannot workon the same costing. Exportfraternity needs to get unitedand fight the cause. How can wework on the previous costing?R. N Maheshwari,Haryana Texprints(Overseas) Ltd., Faridabad

The rise in price of cottonhas been a major setback formany exporters. It’s difficult tosurvive in a situation whereproduction cost along withlabour cost is so high. We havebeen losing on the new ordersthat are coming as the buyer isunwilling to pay higher price forthe product and for orders

which we have already taken up,we are ending up paying fromour own pockets.Gyan Mittal,Kanhaiyalal Kalyanmal,Jaipur

The price is a big problem forthe exporters as the economicsdoes not match. The price of thefabric has gone up by 25-30%,which is a major part of thegarment cost. This price risehas hit our margins badly. Atpresent, we are shipping goodsat negative margins. We areunable to quote prices to thebuyers as we don’t want to loseon them by quoting higher pricewhich is based on our presentproduction cost. We, for now,

MINDTREE - FOOD FOR THOUGHT

I had to reject a huge orderbecause I am not sure what toquote as prices of fabrics areincreasing almost on a dailybasis. This problem can only besorted out if the Governmentrestricts the cotton exports andgives preference to domesticconsumers first. They have tounderstand the fact that ifthey are earning throughcotton exports, they can earnmuch more if the cotton isallowed to move up the valuechain. If things continue thisway, the country will losesubstantial business ingarment exports which willgo to competitors.Sudhir Dhingra,Orient Craft, Gurgaon

The prices of cotton have been increasing continuously over the past few months. AEPC hasalready approached the Government for support as it fears that exporters will either defaulton deliveries or ship out at losses. Has your business been affected? What are the measuresthat you have taken to overcome this crisis?

QQ

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“are just doing sampling forour buyers and will be quotingprices in January.Vikas Jhawar,Texorange Creations Ltd.,Mumbai

The yarn prices have hit theindustry badly in the last twomonths. If it continues like thisthen it would be a grim problemas we are not able to transferthose prices to our customersand that’s really damaging forour business. Our customersare expecting us to absorbthe prices, I do not know howmuch can we absorb? Unlessequilibrium sets in, where thebuyer too shares the costs, Iguess the industry will facetough times.Sharat Jain,Mangalam Ventures Limited,Faridabad

The rising cotton prices havemade situations worse for theexporters to survive in this

industry. Most of the businesseshave finished up as most ofthem manufacture cottongarments. The buyers aremoving to other countries likeBangladesh and Vietnam wherethey can get products at acheaper rate. The industry hasbeen affected badly due to asudden hike in the prices.Ravi Poddar,Cheer Sagar, Jaipur

The margins have squeezedconsiderably as the prices ofcotton rise. We cannot ask thebuyer for higher prices as he willnever be willing to pay the samefor the garment. So, in the end,it’s the exporter who has to bearthe high cost of production. As ameasure to curb the losses, wehave raised the efficiency of workwhich in turn will also help us tocomplete the orders on time.Ashish Wahi,Sunlord ApparelsManufacturing Co. Ltd.,Noida

MINDTREEQUEST IONNA IRE

In the New YearAEPC is ready towelcome the newChairman after thedynamic Rakesh Vaid,what agendas wouldyou like the newChairman to adopt forthe betterment ofthe industry?

Do you think AEPCis proactive insupporting theindustry on criticalissues?

Write your comments to us by07th January 2009 at:[email protected] orpost your views online through ourwebsite: www.apparelresources.com

We have been adversely hitby the hike in prices of cottonas we are seeing a fall innumber of orders. There aretalks in the market that it is apolitical set up and the fabric isbeing hoarded. We have becomehelpless as all we can do is towait for the prices to comedown so that we can tap theexport market again.Rakesh Baboo Sadh,The Design Sangrah,Noida

We surely are suffering dueto the rise in prices of cotton.The production cost has goneup considerably. In order toovercome this situation, wehave been putting the orders onhold which have higherinvolvement of the cottonfabric. Moreover, we have nowstarted using viscose moreextensively, instead of cotton.Jeetendra Kaushal,J K Exports,New Delhi

MINDTREE

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productivity. This was followed by avisit to the actual field where thecotton crops were in full bloom. Wevisited the main project office as wellwhere the records for farmers aremaintained and Vasudha projectteam helps guide interested farmersto convert regular farms to organicfarms. It was very touching to get awarm reception at the project officeand all three of us were welcomedwith garlands… and posed forpictures after being garlanded, feelingvery much like important politicians!

After the photo session, there was atreat of fruits grown organically aswell! We were touched by thehospitality and the warmth of theVasudha project team.

The next step was to understandhow these beautiful cotton pods gotconverted into the garments that weso earnestly were waiting to see, sowe visited the spinning/knitting unitfollowed by the production unit. Itwas truly an educative visit as wewere shown every step of how theorganic story unfolded itself fromfibre to garment!

It was late evening when we finishedand while we were having thesumptuous dinner along with ourhosts, the conversation turned to thefact that we were very near to thefamous temple of Mahakal at Ujjainwhich is one of the ancientJyotirlingas and the discussion alsomoved to how beautiful their morningAarti is. Both my colleagues werebusy enjoying the dinner but themoment I heard this I was trulyexcited to hear this as my mom hadoften spoken about the famousMahakal temple of Ujjain and havingcome so close to it, there was noway I was going to give up theopportunity of visiting the same.

Our flight back to Delhi was nextmorning and a decision had to betaken fast on this since it meant stayingback one more day for this visit.

But the idea was being shot down bymy colleagues due to the extremelyearly hours – the Aarti starts ataround 4.30 a.m. and it meant wehad to start at 2 a.m. from our hotelin Indore to drive down to Ujjain. Ourhosts were kind enough to say thatthey could arrange this for us in facttheir fabric manager and his wife alsooffered to join us on this littlepilgrimage and this was now turninginto an exciting plan. We quickly hada word with our boss and she gavethe go ahead to spend one more

Realizing that we had to be a part ofthis revolution and to understand itsnitty-gritty no one could have been abetter guide for us than the pioneer– Pratibha Syntex with their VasudhaOrganic project at Indore. We had inthe past seen presentations fromthem in our office at Li & Fung… butit was decided for a team of three ofus from our division to visit Indoreand see the complete organicstory…, starting from visit to organicfarms and how cotton is cultivatedand grown in an organicenvironment… and then moves upfrom fibre to fabric… to garment inthe end…!

I and my two colleagues took anearly morning flight from Delhi Airportto Indore… It was a small aeroplanethat wobbled with the slightest whiffof the wind…! The lone kid insidethe plane was enjoying himself withhis candies running across the floorwith every tilt of the aircraft… It wasfun watching him and all thepassengers managed a smile inspite of the air turbulence, looking atthe kid enjoying himself as the flightwent wobbly…!

The flight landed finally, and as wewere getting off the plane… mycolleague Sushil pointed to thewheels of the plane exclaiming howworn out the wheels were…! Welaughed and also thanked our starsand said a silent prayer to have ourfeet firmly on the ground…!

Our tour of the organic farm was nexton the agenda after we had checkedinto the hotel.

We were keen to learn as much aswe could, and the MarketingManager from Pratibha Syntex was awonderful guide. We started with avisit to the cotton fields that had acow shed in the front, we watchedhow organic compost and pesticideswere being made using farm wasteincluding cow urine and cow dung.We were also told how the ancienttechnique from Vedas-Agnihotra wasbeing used to increase crop

When the Editor of ‘LighterMoments’ invited me tocontribute a story…, the

one that immediately came to mymind was one which of course hadvery light moments connected withit… but was not necessarily a funnystory. In our business there is stressrelated to almost every step in thesupply chain… right from the time ofstyle developments followed bycosting negotiations… and delivery,lead times… to executing an order…followed by audits in customerswarehouse… and finally waiting for agood sales report from the store…!Till the garment has not reached theultimate customer…, there is anxietyabout its sales!

In the middle of all this… myinvolvement in organic orders forcouple of our customers came like abreath of fresh air as it offered theopportunity to explore into a new area.

The year was 2007. Organic yarnand fabric was making waves in thegarment industry and a lot of ourcustomers from USA and Canadawanted their products to beclassified organic to boost up theirsales… and also add more value totheir image as responsible retailers.Just as living wages are the talk ofthe trade today, it was organic fabricswhich were hot that year.

THEPULLOFDIVINE

CONTRIBUTOR: PRATIBHA MUKHI, MERCHANDISE MANAGER, PURE COTTON INDIA

L I G H T E R M O M E N T S

Pratibha Mukhi

Pratibha and her colleagues at the Vasudha Centre in Indore

CMYK


night in Indore… and after someinitial reluctance my colleaguesdecided to come along too on thisearly morning pilgrimage yaatra… asone of them called it!

The divine pull had worked and veryearly the next morning we all set outon our journey to the Mahakaltemple of Ujjain… making sure wereached there early enough to seethe famous Bhasam Aarti which isperformed first thing in the morningas the temple opens. The humanash it is said becomes holy, bymerely touching the body ofMahakal, because Siva isconsidered Nishkaam or lust-less.

One of my colleagues knew afamous VIP in Indore and one phonecall took care of getting VIP passesfor us to gain an entry into thesanctum sanctorum to get a properdarshan of the Aarti.

It was also a last minute plan buteverything was falling into place like aperfect jigsaw puzzle…, the bossgranting us permission to spend aday extra, our hosts from PratibhaSyntex offering to drive along with usthe next morning… now the VIPpasses also arranged… wow… Icouldn’t believe my luck and calledup my mom in Delhi to give her thegood news that her daughter was ona pilgrimage which she also wouldnot have wanted to miss..!

As we reached Ujjain and the templein the wee hours long beforesunrise…, a long queue was alreadythere at the entrance just to gainentry inside the courtyard of thetemple. The VIP passes worked like amagic and we zoomed in through ashorter route… right into the entry tothe sanctum sanctorum. The priestled the men folk aside and theywere offered a dhoti to change intoand it was fun to see them come outof the changing room draped in asimple white dhoti!

Inside the temple, some devoteeswere already there and we alsomanaged to… get a space to sit rightacross the area of the Aarti whichwas about to start. The Aarti wastruly amazing… and one got carriedaway with the ambience of the wholeatmosphere completely. The darshanwas so good and smoothlyaccomplished that when I sit backand think about it today, I feel itwas the call of the divine that pulledus there and somehow took care ofany excuses that we may havethought of for not going…

Hello Dear Readers,

As we step into the New Year,here’s wishing all of you and yourfamilies and loved ones SeasonsGreetings and lovely times ahead.May the New Year bring new hopesto the Garment Industry in India andgreat success to each one of you.

What better way to start the NewYear than bring you a storyconnected with the Divine! Pratibhatells us in this story how the divinepowers led to a situation fulfillingher desire to visit the famousMahakal temple in Ujjain. Ourbusiness trips generally are so hecticthat we end up just rushing fromairports to hotels to factories andthen back again to airport…! Lifejust goes on with one business tripafter another…

In the middle of all this, it is inspiringto come across a story which goes along way to show that where there isa will… there is a way, always!…and of course when the divine iswith us things just fall in place.

Best always,

LEELA [email protected]

COLUMN EDITOR

The flight we took back was muchbetter as we had to change our aircarrier due to the extended trip timeframe (we were all happy about this)and we were back with memories ofa successful trip and divine blessingsthat would forever remain dear.

Incidentally, let me share one funmoment during our visit to the organicfarm and visit to the goshala… wherecows were kept and cow dung andurine was used for preparing manurefor the cotton fields.

Our escort told us a funny story ofhow the CEO of a big corporate fromAmerica visited the place sometimebefore our visit, and once he sawcow dung and urine, etc. …hissensibilities were shaken to the core,as he exclaimed:

”…Is this how organic fabric getsmade… using this cow sh..”!

They never heard back from him ashe left shell shocked!

The pull of divine, after all, was notworking in his case…

LIGHTERMOMENTS

CMYK


key sourcing too took a beating. Orders were placed in ‘least costdestinations’ and value offerings were the demand of the season.

In this difficult economic scenario, the Indian industry was hithard by the biggest insolvency of the year – that of Arcandor, theparent company of Karstadt Quelle, which not only shook theIndian industry, as many exporters are working for the retailer,but also raised many pertinent questions on how buying agenciesoperate in the country. The bankruptcy reminds us that theeconomy is still precarious and that going forward some moreshockers may be waiting for us in 2010.

As predicted, China was tamed in 2008 and this year we witnessedshift in business from the dragon to low cost countries likeBangladesh, Vietnam and Cambodia and even to India becauseof the rising cost of production in the country. China startedthe year with an increase in the value of exports by 7.5%; howeverthe volumes were down (-) 2.82% indicating that the cost ofproduction had gone up and the quantities had suffered in theNew Year. The trend remained more or less the same throughoutthe year and buyers are now keen to spread risk for morebalanced sourcing.

As for fashion trends, we were bang on target and all the indicatorsfrom sheer fabrics to Grecian style dresses have indeed dominatedproduct development in 2009 for S/S 2010. It is heartening to seethat trends in fashion are India-friendly and that has given apositive push to business this season. Buyers are looking at valueat least cost, and India is positioning itself to deliver.

And last but certainly not the least, optimism has been the mostused and abused word this year… Everyone I talked to this yearfrom buyers, exporters, technology providers to fair organizers,the common rejoinder is that buying is bound to get back on trackas retailers have run out of inventories and they have no optionbut to buy, which means more business in the apparel supplycycle from 2010. For India, we are hopeful of business also becausetrends are India-friendly. S/S 2010 is about lightness and romancea theme which is an Indian favourite. With dresses still in demand,skirts have made a comeback and Jaipur is flourishing withtie&dye, pleating and layered skirts in demand. Floral printsmostly large in size are also in vogue. Preferred fabrics arechambray, voile, georgette, poplin and yarn dyed cotton. Anothertrend that is very Indian and is hot for 2010 is checks. Blouseswith checks in different presentations are in production or havealready been shipped out in large quantities.

Indeed, expectations are high of business picking up in 2010, butit is more a perception than a statement backed by facts… so wego into the New Year with optimism hoping for a better andmore stable year.

DEEPAK MOHINDRAEditor-in-Chief

In my editorial last year I had stressed upon the need to bringin operational transparency for growth. I still stand by thethought… as to achieve long-term growth and maintain profits

it is important to analyze inefficiencies, identify bottlenecks,involve the managers and operators in the decision making process,and share information with each section. While it is too early tosay whether the industry has moved in the direction, what theyhave done this year is well used this slow period to work onproductivity improvement and better the operational methods tomeet the reducing product prices on a global platform. Certainlya move in the right direction…

We had highlighted seven key trends of 2008, which wouldimpact business in 2009. I am satisfied to note that all the trendsthat were analyzed have indeed had a bearing on this year. Whocan deny that sustainability is the biggest trend and as predictedcontinued to be the buzz at all forums. The emphasis on sustainablegrowth is too big to ignore and it is our trend number one for thisyear too. The concept has penetrated into the ethos of thecomplete supply chain and everyone has to look at how he is doingbusiness in a responsible manner to achieve three basic goals –social, environment and economic sustainability, with the threeoverlapping for deeper implications.

While environment sustainability is about carbon miles and energysaving devises…, the route of social sustainability is increasinglymoving towards Trade Fair and accountability to workers in thesupply chain. Today, the industry is more sensitized to suchconcerns. In fact, this year what has emerged as a trend is therising voice for living wages. The debate is getting hotter and Idon’t think that it can be brushed away any more. But how toimplement and who is going to be responsible for the cost is thecritical question that needs an answer. In the meanwhile, theorganic movement has become a way forward for many companiesand India has finally emerged as the biggest producer of organiccotton, surpassing Turkey. It is a trend that more and moreexporters from the country are adopting for growth.

The real challenge is to achieve environment and socialsustainability in a way so as to be profitable for economicsustainability. For that it is important to look inwards as I mentionedearlier for better efficiencies and operational benchmarks. Alsoit is important that all the stakeholders in the supply chain createsynergies for sustainable growth in a wholesome manner.

Trend number one last year was the financial gloom that wasleading to many store closures in the US and also perpetuatingcompanies to file for protection under Chapter 11. Indeed thetrend continued this year and the US saw 434 store closures andmore than 100 Chapter 11 files of which a few were also apparel-based stores/companies. Retailers in general cut down on theirinventories and sourcing was done at the lowest possible price.The apparel supply chain remained vulnerable to the economicsituation and as buying by consumers by and large remained low

REFLECTIONS OF THE YEAR GONE BY…

editorialeditorialeditorialeditorialeditorial

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Most climate scientistsagree that between nowand 2050 greenhouse

gas emissions, commonlyreferred to as carbon emissions,must be reduced by 80%(year-on-year by almost 4%from 2010) if we are to avoidserious adverse effects ofclimate change.

As the situation is gettingdeeper rooted by the day, it isnot far when sustainabilitywill be an integral part ofsourcing strategy withexporters who have invested insustainable processes andproducts emerging as thepreferred supplier.

Retailer InitiativesFor retailers the route to besustainable is to source from asustainable supply chain andimplement sustainablepractices in retailing; for thegarment supply chain it is thetextile mills and processingunits which are the majoroffenders. Brands that havecommitted to work within asustainable framework includeNike, Levis, Inditex, Migros,M&S, GAP, Timberland, Target,H&M, Macy’s, Tesco, to name afew and the list is increasing bythe day. Issues like carboncredits, green stores, windenergy, organic cotton and fairtrade are now an integralpart of any complianceinitiative. Retailers are alsolooking at options to buy fromcloser destinations or optimizetransportation to reducecarbon footprints.

Involving theConsumerEfforts are on by Green activistto impress upon all players inthe supply chain that thecarbon footprints along thecomplete chain must bereduced to have significantimpact on the environment.This includes the consumer.Research by M&S and OttoGroup, studying the lifecycle ofcotton apparel clearly showsthat nearly 80% of the garment

SUSTAINABILITYTHE ONLY WAYFORWARD FORPLAYERS INTHE APPARELSUPPLY CHAIN...In our last issue we had featured

‘Sustainability’ as trend number

one for the year 2009 that will

impact business in 2010 and

beyond. A summary of the same is

reproduced below along with the

other key trends to emphasizes the

importance of sustainability. For

details of companies and their

initiatives, read Apparel Online

issue December 16-31.

industries energy andgreenhouse gas responsibility isactually in the hands of theconsumer in the washing, dryingand pressing stage. Efforts arenow on to educate theconsumers and encouragethem to wash and dry clothes atlower temperatures.

Sustainability inManufacturingBrandix Lanka Limited, Marks& Spencer’s ‘Green’ fashionsupplier based in Sri Lanka,is a global benchmark ondoing more with less bytransforming its oldest 33-year-old apparel factory into amanufacturing eco-centre.

As retailers redefine theirgrowth strategy based onsustainable concepts,manufacturing hubs like Indiabegin to build in sustainabledevelopment. Work to becomesustainable has begun withearnest. TASMA, an organizationthat represents Textile SpinningMills in Tamil Nadu, is thepioneer in transporting theconcept of Carbon Credit toIndia by bringing together a largenumber of textile and apparelcompanies to take advantage ofwindmills to generate energy,thereby cutting down on carbondioxide [CO2] emission by theseunits, directly and indirectly.Responding to issues ofsustainability all major exportersin India have action plans inplace. Recycling and reuse ofwater is being practiced. Themain thrust areas insustainability are – Eco-friendlyproducts to customer, Reductionin heat, power saving,circulation of fresh air, betterlighting and health environmentfor work force. Other ecologicalefforts like water treatment andrecycling are already built intothe working philosophy. Otherefforts by exporters includeincreasing use of servo motors,finishing presses with betterpipes so that temperatures aremaintained and the use of biomass to create electricitythrough captive plants.

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The voice has become toobig to brush aside andthough organizations that

are pushing for the same arepractical enough to admit that itwill be years before the fashionindustry will have anythingworkable and tangible to offer asliving wages…, what isimmediately being asked for isan upward revision in wagerates at manufacturingdestinations nearer to whatcould be a ‘living wage’.

For exporters any revisionupwards of the wage rates is adrain on their already thinmargins and buyers seem towant better wages, but stillprefer to work with low wagecountries. The irony of thesituation has been fodder forNGOs to keep pushing for livingwages. A report by ‘Clean UpFashion’, an initiative of UKLabour Behind the Label (LBL)highlights that the simple butappalling facts behind all theexcuses for not implementing‘living wages’ is that themanufacturing bases are in poorcountries and that is the onlyway prices in today’s economictimes can be met… exploitinglow wage production.

According to LBL, a frameworkbased on how wages in differentmanufacturing centres could berevised does exists, called thewage ladder approach. Thisapproach involves mapping thedifferent wage levels at eachmanufacturing base according toparameters of – poverty lines,outcomes of collectivebargaining agreements; floorwages, existing calculatedfigures of the same, and so on –The report also suggest that theframework could also be used asbenchmarks on the way towardsdetermining a living wage.

It is also important that decidingon a living wage should be acollaborative arrangementbetween buyer and supplier, andthat means buyers must beprepared to do their bit. It isargued that if workers canproduce more clothes in thesame amount of time, the factory

THE DEBATE ONLIVING WAGESGETTINGHOTTER… ANDLOUDERThe year 2009 saw the debate on

living wages heating up with

fresh thrust to the demands as

NGOs put forward the thought in

a practical manner defining the

reasons why it is not happening

and coming together to suggest

what could be a ‘living wage’

common to all manufacturing

destinations in Asia. Moving into

2010 the demand to move in the

direction of living wages is only

going to get louder.

can take on more business, earnmore money, and pay workersmore, while reducing theirovertime. The buyers don’t needto adjust the prices they pay tosuppliers, and they may evenget their orders turned aroundmore quickly, so it’s a win-winsituation. Productivityimprovements that correct thissituation by making targets morerealistic are welcome, but ifinstead targets are increased,the pressure may stay the sameor even intensify. Indeed, a focuson productivity alone could turnso-called living wage projectsinto cost-cutting initiatives bythe back door.

International NGOs argue thatlegal national minimum wagesset for workers in the apparelindustry fail to provide enoughincome for workers to maintaintheir families above nationalpoverty levels. Poverty wagespush many workers into debt,lead to malnutrition, causehealth problems, and makeworkers and their familiesextremely vulnerable shouldthey face suddenunemployment, health problemsor disabilities. In fact, thoughthe United Nations definespoverty as living on less thanUS $ 2 a day, yet across Asiaand Africa millions of workers infull-time employment earn lessthan this. In Bangladesh thelegal minimum wage is onlyUS $ 25 – less than US $ 1 a day.The United Nations defines thisas absolute poverty.

On October 7, 2009 workers’rights groups in over a dozencountries throughout Asia, Europeand the Americas participated inthe public launch of the AsiaFloor Wage Campaign (AFWC).The campaign is demanding acommon minimum living wagefor garment workers across theAsian region, in order to stopthe destructive race to thebottom on wages and labourstandards – which is fueled inpart by companies movingproduction between countries inthe region in search of ever-cheaper labour costs.

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The reflection of themagnitude of penetrationof organic cotton was

seen at the IIGF in January,where products made from OCemerged as the hottest trend. Infact, even in a market that is soprice-sensitive, products madefrom 100% organic materialsfound buyers despite being15-25% more expensive toconventional products. Thepotential for growth in themarket is obvious from the factthat retailers with the top threeorganic cotton programmes inthe world, Walmart, C&A, andNike, projected to representapproximately 50% of organiccotton retail demand in 2009 and

The Asia Floor Wage (AFW) isbased on “the income requiredfor a single earner to support afamily of four (2 adults and 2children) by working a legalmaximum working week (but nolonger than 48 hours), excludingany payment for overtime orother bonuses/allowances.” Itshould provide enough incometo pay for food and otheressential living costs such ashealthcare, housing, clothing,childcare, transportation, fuel,education, etc.

The AFW is expressed as asingle figure that can beconverted to local currenciesusing the World Bank’s‘purchasing power parity’ (PPP)formula so that the floor wagewould allow workers topurchase the same amount ofgoods and services in eachgarment-producing country inAsia. The AFW for 2009 was setat 475 PPP $. The pressure toaccept the ground-breakingwage benchmark AFW forgarment workers has begun asClean Clothes Campaign (CCC)activists are pressinginternational retail giants suchas Carrefour, Tesco, Aldi andLidl, as well as other majornational-level retailers, to takeup the AFW as living wage.

The proposed living wage forIndia works out to aroundRs. 6000, for China it is 1200

Yuan (Rs. 8317.87) and inBangladesh it is 8180 Taka whichis equivalent to Rs. 5599.88.

There are two elements to thediscussion – one who will paythe difference in wage rateswhich vary from 30% in China tonearly 80% in Bangladesh, Indiawill also see an increase ofwages by 49% and secondly –how to put a mechanism in placeto ensure that the living wagesactually go into the hands of theworkers. While it is beingsuggested that the buyerscontribute to the added cost, inan earlier issue of ApparelOnline, it was mooted that amechanism can be put in placeprovided there is the will to goahead. A fund could be createdwith an independent bodywherein buyers have tocontribute a defined percentageof the total business done withthe player to the fund. The fundmust be managed by theworker union who has anaccount for each worker andlike the PF the money isdischarged into the accounts ona regular basis separate fromthe wages as defined by thegovernments of respectivecountries as minimum wages.

The debate has become sostrong that it is becomingdifficult to ignore and 2010 willonly see the debate gettinglouder and bolder…

ORGANIC COTTON AGROWTH ENGINE FORINDIAN GARMENTEXPORTERSThe year started with the news that India has

overtaken Turkey as the largest producer of

pesticide-free cotton. In 2009, the movement

towards orgainic cotton was undeniable as

increasing number of companies looked at the

option. Also with many buyers initiating projects

in the country centering on organic cotton it has

become a major growth driver for the country…,

a sustainable way to grow.

2010, have reaffirmed theirplans to move forward withexpansions in their organiccotton programmes. H&M toohas announced plans toincrease its organic cottonproducts stable by 50% this year,given consumers’ desire to buysustainable products.

The top 10 organic cotton-usingbrands and retailers globally areWalmart (USA), C&A (Belgium),Nike (USA), H&M (UK), Zara(Spain), Anvil (USA), Coop(Switzerland), Pottery Barn(USA), Greensource (USA), andHess Natur (Germany). OrganicExchange said that, despite theglobal retail outlook, mostbrands and retailers selling

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The Asia Floor Wage is based on “theincome required for a single earner to support afamily of four (2 adults and 2 children) by workinga legal maximum working week (but no longer than48 hours), excluding any payment for overtime orother bonuses/allowances”

International NGOs argue that legalnational minimum wages set for workers in theapparel industry fail to provide enough income forworkers to maintain their families above nationalpoverty levels

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organic cotton productsremained committed to theirsustainability plans and upbeatabout market growth, withplans to expand their productlines by 24% and 33% in 2009and 2010, respectively. Thiswould result in an estimated$ 4 billion market in 2009 and a$ 5.3 billion market in 2010.

However, this sustainabilityroute has its set of problems.The biggest being traceability,which means ensuring organicintegrity goes beyond the initialcertification at the farm level.Standards such as GOTS andOE 100 or OE Blended exist forthe OC supply chain and it isthe responsibility of each playerto ensure that they arereceiving correct and validdocuments, and doing their partto track the fibre as it movesthrough their system.

In fact, traceability of the chainand the commitment of playersin the chain to ensuretraceability continue to raisequestion on the authenticity ofthe movement beyond just an‘environmentally’ friendlyproduct. Traceability impliesthat every retailer/consumermust be able to trace the lifecycle of the product right downto the farmer level because ofthe certification transactionsthat happen at each stage whichensure that all parameters ofintegrity have been maintained.

Basically, Organic textiles arevalidated according to two

standards – GOTS and OE.While GOTS (Global OrganicTextile Standards) emphasis theuse of 95-100% organic fibre andban all forms of harmfulsubstances from spinning up tothe finished product, OE(Organic Exchange Standards)allows blending in specificratios. Each chain is trackedaccording to the parameters ofthe permitted limits of the chain.

Another hindrance to the growthof organic cotton is the costinvolved. While everyone wantsto be associated with the cause,not many want to bear the cost.On an average OC productshave a 15% premium along thesupply chain and thoughconsumers, by and largeappreciates the product they arenot always happy to pay for it.The biggest hypocrites in thesystem are the big retailers whosplit the responsibility but notthe cost. So what is happening isthat the manufacturers arebearing the cost of a conceptthat was intended to be both asocial and environment issue forthe future of the Earth.

With increasing capacities inOC, prices are expected to comedown. The World Congress onOrganic Cotton “From Fashionto Sustainability”, which wasorganized by the Swiss NGOHelvetas and the US-basedOrganic Exchange, both non-profit organizations trying topromote organic cottonproduction, recently

emphasized that as the supplyof organic cotton has grownquicker than its demand, thereis a current oversupply oforganic cotton and at thebeginning of 2009 stocks wereat 42,000 tonnes. 17% to 30% ofthe 2008/2009 yield are not yetsold and form the first majoroversupply in organic cotton.However, experts agreed thatthe growth trend in organiccotton is continuing andexpected stocks to be clearedby late 2010.

Undaunted by the bottlenecks,Indian manufacturers are takingthe organic route as the ‘real’benefits of working in organiccotton are too many to ignore,starting from the farmer whobesides not using any chemicalswhich are harmful will also seethe expenses go down to nearly90%, as producing cottonwithout chemicals there arehardly any expenses. It’s justthat in the beginning the yieldwas really less but in the endyou don’t have any expenses.For exporters it is a nicheproduct to offer and with thebenefit going right up to theecology which is a macro issueand of concern to all it is thepath to sustainability.

In India there are 397 GOTscertified companies of which 197were certified in FY 2008-09alone. While most organicfarms are located in theMaharashtra, Madhya Pradesh,Gujarat and Andhra Pradesh

belt, it is the towns ofCoimbatore and Tirupur inTamil Nadu that boast of themaximum number of integratedplayers in organic cotton.Though the pioneers of themovement in India arePratibha Syntex, Indore, who isinvolved with OC from thefarming to finished product,this apparel manufacturing belthas come up very strongly insupport of organic cottonmanufacturing and a goodnumber of factories are GOTScertified. Among the Mills,Super Spinning Mills andArmstrong Knitting Mills aremajor suppliers of organiccotton yarn to the exportmanufacturing industry whileSCM garments and CottonBlossom are spinning for theircaptive needs. Other majorplayers include EastmanExports, JJ Mills, AssissiGarments and NCC.

The north is also taking up theconcept and SPL, HotzInternational, COTEX, RamRajya, Orient Craft are somenames that have entered thefray… Processing mills arealso getting certifications toprocess OC and exporters arelooking at the segment as agrowth driver. Indeed organiccotton has become anintegral component of thesustainability movementand Indian manufacturersare moving ahead quite brisklyon this route.

Traceability of the chain and the commitment of players in the chain toensure traceability continue to raise question on the authenticity of the movementbeyond just an ‘environmentally’ friendly product

Organic Exchange said that, despite the global retail outlook, most brandsand retailers selling organic cotton products remained committed to theirsustainability plans and upbeat about market growth, with plans to expand theirproduct lines by 24% and 33% in 2009 and 2010, respectively.

Undaunted by the bottlenecks, Indian manufacturers are taking the organicroute as the ‘real’ benefits of working in organic cotton are too many to ignore,

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The Indian market forTechnical Textiles isworth around Rs. 37,565

crore and is growing at a pace of11-12%. The growth in thesegment is fed by the fact thatthe current per capitaconsumption in India is quitelow at 0.3 kg as against 7-10 kgin the developed world. Even theshare of Technical Textiles inIndia at 5% does not comparewell with the correspondingfigure of 30% as reported in thedeveloped world. However,industry opinion is thatcombined growth of varioussectors within TechnicalTextiles will bring about anoverall growth of the segment inIndia, namely Geotech,Buildtech, Meditech, Mobitech,Agrotech, Protech, Packtech,Sportech and Clothtech.

Though the movement towardsTechnical Textiles has beenslowly gaining ground, it is in2009 that the Government gave apush to the segment with thelaunching of Technology Missionon Technical Textiles in the XIFive Year Plan. India being adeveloping economy theinfrastructural growth in next10 years would be exponentialand with that both Geotech andProtech will get a huge boost.Further, awareness leveltowards the safety of workers isincreasing as most of theconstruction companies aremultinationals and they havebrought in the safety culture toIndia, which again is impetus forgrowh of Protech. Another highgrowth segment is Meditech asmedical care enters a new phaseof modernization.

In a world market for technicaltextiles estimated at around 21million tonnes with a value of US$ 127 billion by 2010, the driversfor future growth are expectedto be Asian countries like Chinaand India. The industry in Indiahas grown 275% during 2001-02to 2007-08 and today there areabout 1500 Technical Textilesunits in the country whichincludes MNCs, large scale units,SSI and even cottage units.

INDIAN TEXTILEMILLS AND APPARELMANUFACTURERSTAKE THETECHNICAL ROUTEFOR GROWTHThe textile industry in India is no longershying away from innovations and asthe market for technical textiles grows,more and more companies are gettingon to the bandwagon for both fabricand finished products. While textile millsare looking at the segment as a growtharea, apparel manufacturers are usingthe fabric to diversify their productoffering into non-traditional productslike ballistic clothing, workwear,sportswear, school uniforms, car seatcovers, medical accessories to name afew products that have already createdmarket awareness.

Alok Industries has establishedits position in Technical Textileswith offerings like fire retardantfabrics, water repellent and soilrelease fabrics, high visibilityfabrics and ‘heavy weight’industrial fabrics for workwear,school uniforms, automotive anddefence requirements. Thecompany has also entered theworkwear market propelled byits strength in TechnicalTextiles. Jaya Shree Textiles, adivision of the Aditya BirlaGroup is specializing in fireretardant fabric supplying toboth domestic industry andgarment exporters in theworkwear market. Anotherupfront player Shri LakshmiCotsyn is supplying technicaltextiles for institutional marketfor uniform and ballistic wear,besides manufacturing uniformsfrom its garmenting unit. Othermills supplying to the workwearmarket include JCT, Arvind andVardhman. In Protech the onlyIndian company which hascapability to weave the Kevlarfabric is Indian Armour, whichspecializes in ballistic clothingboth for the national andinternational market.

According to the industrysources, Reliance Industries isaiming to grab 50% market shareof Technical Textiles in Indiawithin three years. Thecompany has become a memberof the US-based Association ofthe Non-woven Fabrics Industry(INDA). Coimbatore-basedShakti Group with an annualturnover of over Rs 2,000 crore,of which textiles contributedRs. 100 crore, is looking atdiversifying into non-woventextile manufacturing andmarketing in India. A non-textileentrant for automotive textilemanufacturing is tyremanufacturer SRF Ltd., which isplanning to invest Rs. 250 crorein its automotive textile project.

Ahlstrom, a global leader in highperformance fibre-basedmaterials, has signed aMemorandum of Understandingwith Mundra Special EconomicZone (SEZ) in Gujarat, to

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purchase a land area of 5hectares in the Textile andApparel Park to start itsproduction of medical textiles.Chandigarh-based SuryaTextech, a conventional cottonyarn manufacturer with aturnover of Rs. 30 croreventured into technical textilejust a year back with aninvestment of Rs. 10 crore. Thecompany is manufacturingSpunbond fabric which meetsthe need of diverse range ofproducts like medical,hygienic and industrialmarket application.

Ginni Nonwovens, a division ofGini Filaments is manufacturingSpunlace non woven fabrics in avery state-of-the art facility inPanoli, Gujarat. Totalinvestment in this project wasRs. 130 crore with a capacity of12,000 tonnes/annum. Mumbai-based Kusumgar Corporates isdedicated to manufacturingfabrics (woven and non woven)for ballistic, industrial andsportswear along with geo-textiles. Rana Polycot Limited,Chandigarh has startedmanufacturing PCM (PhaseChange Material) basedtechnical textiles which is verygood for sportswear anddefence uniforms as itregulates the temperatureaccording to the weather/environment. This will give apush to the garment exportersworking in this segment.

Joint VenturesMany textile mills have gone infor foreign collaboration as thetechnology is still limited inIndia. A very significant tie-up isbetween Italian Giant Klopmancatering the global need ofimagewear, workwear andprotectivewear since 40 yearsand S Kumars Group. Thesefabrics are extensively beingused by workwearmanufacturers like Amritexports, Mallcom, Acknit,Texport Syndicate, etc.

Alps Industries has gone intocollaboration with a Japanesetextile company Suminoe Textile

Co. Ltd., manufacturer ofautomotive fabrics and interiormaterial to manufactureautomotive fabrics. Alps is alsolooking at geo-textile-coatedfabric manufacturing as well.UK-based Technical AbsorbentsLtd. (TAL), manufacturer ofsuper absorbent fibres has atie up with BCH to berepresented in India. The corebusiness of TAL owned byBluestar Fibres Ltd. is themanufacturer of Oasis SuperAbsorbent Fibre (SAF).

Another JV company isWellproof Technologies, a jointventure between UK-basedProofings Coated Textiles,manufacturer of rubber coatedtextiles and Mumbai-based VakoSeals Ltd. The JV company ismanufacturing coated textilesfor defence, fire protection,industrial and medical industry.

Ahmedabad-based CTMTechnical Textiles has recentlyventured into technical textiles.The company has gone in for amarketing tie-up with HKOGroup, Germany.”HKOspecializes in coated/laminatedfabrics ideal for ballistic andindustrial garments. Thecompany gives flame-retardantPUR coating, UV resistance,soil and oil repellent and manymore finishes.

The potential for Indian textilemills to expand capacity isobvious from the fact that Indiais importing Rs. 4,000 croreworth of technical textile today.The potential growth in thesegment is huge with thedomestic market for technicaltextiles projected to grow toRs. 66,414 crore by 2012 ofwhich 93% is expected to beconsumed domestically and 7%for exports. Further, the scopeto expand product offering tointernational buyers has alsoincreased as the technicaltextile capacity in Indiaincreases making it easier forgarment manufacturers to movebeyond the obvious and the nextfew years will definitely see agrowth in product categoriesthat require Technical Textiles.

The financial crises atArcandor, the parentcompany of Karstadt

Quelle saw more than Rs. 150crore worth of payments toIndian exporters held up in themess. On 29th July, Quelle LaSource (France) also filed forinsolvency deepening the crisis.

Though earlier in 2008 alsoretailers had gone bankrupt,the impact of the same was notas far reaching, changing theway exporters want to dobusiness and raising questionson the functioning of buyingoffices in India.

For an industry that has hadhard times for the last one yearbankruptcy filings are added

BANKRUPTCYBROUGHTINDUSTRY ON ONEPLATFORM TOREGULATE BUYERSThough the financial slowdown has taken a

toll on many companies, some were hit worst

than others. As in 2008, this year too saw a

number of store closures and bankruptcy

filings both in the US and EU. But one case

that shook the industry was the insolvency of

Arcandor in June.

problems. In fact, ever since theglobal economic recession beganin second half of 2008, manyretailers like Steve and Barry’s,Goody’s along with Mervynshave faced a financial blow.Pacific Sunwear, Lane Bryant,Fashion Bug and Catherinesclosed over 150 under-performing outlets. Foot Lockerwound up 140 stores and AnnTaylor closed nearly 120 outlets.Others like Eddie Bauer, Cache,Talbots, J Jill, GAP Inc, GoodbyeLevitz, Home Depot, Macy’s, PepBoys, JCPenney, Lowe and OfficeDepot as well scaled downoperations due to falling sales.

Arcandor filed for insolvencyafter requesting and being

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denied emergency funds ofaround 640 million euros(approximately $ 930 millionUS). After Arcandor made itsshocking announcement,vendors who were supplyingmade-ups, apparels and othertextile items through Li & Fungfor decades felt cheated, asthey were not informed abouteither Arcandor’s financialposition or about why thepayments were getting delayedsince January ’09.

The event brought the industryon to a common platform andhas created awareness tochange the way business isconducted through the buyingagencies. Exporters are nowlooking at contracts morecarefully. The importance of arisk management team has alsobeen enhanced. While the ECGCprovides insurance to exportersfor shipments made, there isincreasing demand for morecompanies that can check thecredentials of buyers evenbefore orders are placed.Exporters are also demandinggreater involvement of AEPC tokeep a check on the functioningof buying houses.

In fact, there is a growingdemand that buying agenciesshould also apply for licensesand should be given permit towork as an agent from theGovernment of India so as tokeep a tight control on theirfunctioning. Further, the licenseshould be given on the basis ofcertain defined criteria’s that

test the credibility of the agencyand a specific code of conductfor buying houses operating inIndia also needs to be laid out.The voice for greatertransparency in the supplychain is growing stronger.

While the Arcandor insolvencyhas alerted the industry to thepitfalls of blindly doing businesswith buyers, the second majorbankruptcy filing of lenderCIT Group can haverepercussions on many smalland medium exporters in 2010.The CIT Group filed forChapter 11 protection in anattempt to restructure its debtwhile trying to keep badlyneeded loans flowing tothousands of mid-sized andsmall businesses. The Chapter11 filing is one of the biggest inUS corporate history, followingLehman Brothers, WashingtonMutual, WorldCom and GeneralMotors. CIT’s bankruptcy filingshows $ 71 billion in financeand leasing assets against totaldebt of $ 64.9 billion.

Experts believe that Indiangarment exporters could getseverely impacted in thecoming months as thousands ofsmall and medium-sizedbusinesses in the UnitedStates face financialdifficulties and could go out ofbusiness because of the filing.Nearly 80% of Indian exportersservice small US vendors.Further, credit terms mayworsen and thereby impactIndian exporters.

CIT is the largest factoringfirm to the apparel sector,responsible for an estimated60% of factoring in the USapparel and footwearindustry. Giants such as LizClaiborne Inc., one of thereported clients of CIT, maynot be so badly hit with otherfinancing options in banks.But the smaller companieswill get deeply impacted,especially due to lack ofoption for financing. As perStandard & Poor’s estimate,CIT lent about four billiondollars to US apparelmanufacturers and retailerslast year. With 71 billiondollars in assets, thecompany serves 2,000vendors that supplymerchandise to 300,000stores, according to the USNational Retail Federation.

Going into 2010, the industryis hoping for better businessenvironment, but the lessonsof experiences in 2009 havesharpened their wits to facebuyers on equal terms andinvestigate the financialstrength of a company beforeentering any agreement… itwas interesting that whenCharles Voegele opened abuying office in India recently,the first questioned askedwas how financial strong theyare… indeed the industry haschanged for the better and2008 will see exportersconducting business on moretransparent bases.

Exporters are nowlooking at contractsmore carefully. Theimportance of a riskmanagement team hasalso been enhanced.While the ECGCprovides insuranceto exporters forshipments made, thereis increasing demandfor more companiesthat can check thecredentials of buyerseven before ordersare placed

Though earlier in2008 also retailers hadgone bankrupt, theimpact of the samewas not as farreaching, changing theway exporters want todo business andraising questions onthe functioning ofbuying offices in India

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Optimism – Hopes and Aspirations 2010...

We are going into the New Year quitepositively and it will continue. I amvery hopeful that S/S 2010 is going tobe better than 2009. Overall thereare on-going enquires. Spinning millsare doing very well now but we don’tknow whether the recession is at thestart of its tail-end or almost on averge of finishing. We have gone forextensive expansions in last two yearsand now we are looking at growingour apparel business by 40% by theend of 2010. We are going to be veryaggressive on our manufacturing and

continue to do what we do well.

ShreyaskarChaudhary, MD,Pratibha Syntex, Indore

We are very optimistic about 2010. As acompany dedicated to organic cottonproducts, we are looking at increasing ourorganic yarn capacity by 50%. Now theera is of ethical and fair trade and we are

already towards it.

Sumanth Ramamurthi,MD, Super SpinningMills Ltd., Tirupur

I am sure 2010 will be much, muchbetter than 2009. Our orders are 40%better than the last season so a very

lucrative S/S 2010 is ahead.

Rajesh Kumar, HeadHot Source, Gurgaon

Though 2009 has overall been a dull year for most players in the industry, the undercurrent of optimism has runstrong… the first indications that things could now go right for India came from the buyers in early June when mostof them felt that trends for 2010 were certainly India-friendly. Optimism was also reflected in the way the industryperceives how business will move in 2010. Talking to buyers, exporters, technology providers, fair organizers andother industry informed persons, the common rejoinder is that buying is back on track as retailers have run out ofinventories and they have no option but to buy, which means more business in the apparel supply cycle.

With most retailers admitting that inventories are at the lowest levels the industry is optimistic of better businessin the coming year and few exporters even commented that the undercurrent is of 50% growth in the S/S 2010season. Not only the retailers but consumers too seem to have got tired of lying low, overall US retail sales inNovember spiked by 1.3% after a healthy 1.1% gain in October. November’s increase was well above the consensusestimates breaking above even the most optimistic estimate. Further, US consumers’ sentiment for Novemberrose to 73.4 from 67.4, against expectation of 68.5 appeared to argue for a self-sustaining economic recovery. Inthe meanwhile the stock market, investors in the US have bid up retailing stocks in anticipation of an economicrecovery. Apparel retailers are up about 70% this year, department stores have gained about 63%, and generalmerchandise retailers have risen 38% growth…

US has recovered a bit. The worst seems tobe over. We are currently not expandingcapacities but moving up the value chain,which is still in the volume moderatemarket. We are going into forwardintegration not backward by opening retailstores in India for market diversity and alsoas India story is still intact. Our brandchemistry has been very well received and

we are growing it aggressively.

Sunil Jhangiani, MD,Esjay International, Mumbai

In my opinion, the difficult period is disappearing with the end of 2009. Thegrowth signs emerging out of US economy as well as stability in Europe andUK is giving renewed confidence to the importers and retailers in thesecountries. We have seen a great upsurge in business in the last 8 weeks.

I feel this will continue for the year 2010.

Sudhir Dhingra, CMD, Orient Craft Ltd., Gurgaon

I feel that 2010 will be a great year forthe industry. We are going to expand inthe entire value chain, right fromspinning, weaving to garmenting.Workwear garmenting will take a majorleap. In home textiles our focus would beon our latest product category terrytowels. We are planning to increase ourcapacity in wider-width which will takethe production capacity to 68 millionmetre from 47.05 million metres perannum. In our international retailingbusiness we are looking at opening 100more retail outlets of ‘Store Twenty One’in 2010 with a projected turnover of over

200 million pounds.

Dilip Jiwrajka, MD,Alok Industries, Mumbai

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Our planning for year 2010 is toachieve at least 20-25% growth.We want to achieve this not byexpanding our capacity but properutilization of our lean period fromMay to October. Our capacities areutilized hardly, just 40% during thisperiod. We are trying to fill up thisby tapping new markets in SouthAmerica and expanding our base inJapan which has emerged as goodmarket for us in recent years.

Another area we are working on isLean Manufacturing. We areimplementing this under a SriLankan consultant to improve ourproductivity and reduction ofwastages in the process. This willmake us more cost-competitive toachieve higher growth.

On socio, economic andenvironmental front, we areaggressively pursuing organicgarments and recently got certifiedas GOTS-OE manufacturer.

We are also working on to reducecarbon footprints inside ourfactories. For this purpose we arehiring a specialized agency to carryout intensive audit of our facility toprepare a road map for energysaving. We also gave similarproject to two NIFT final yeargraduates as part of their study.They will be working from January2010 on this. Water recycleproject is also being considered tosave water in our laundry. In termsof recession, US market isresponding slowly and we areseeing a small growth.

All these steps will not only help usin getting desired growth,improving the bottom line but alsomake us a socially responsiblemanufacturer.

Animesh Saxena,MD, Neetee Clothing,Gurgaon

Let’s be optimistic about 2010. Seeingthe trends, I foresee S/S good for ushowever the increase in cotton pricesmakes the industry skeptical. If the textileministry doesn’t take some steps to bringdown the cotton prices, I dread thatbusiness would slow down.The ministryshould immediately stop the cottonexports from India so that the positivismwhich started brewing from 2009onwards would disappear very soon.

Mohan Anand, GM,Walther & Walther Int’l,Bangalore

We are looking forward for a good yearahead keeping in mind various businessplans according to the present scenario anddemand of the customers. We have alreadyordered different and new machinery forcompleting and enhancing the productionand fulfil the ever increasing demand ofour buyers and exporters. We havebeen receiving very good response fromthe buyers regarding the quality weare supplying.

Mukesh Jain, Director,Jain Narrow Fabrics,New Delhi

Our Strategy for 2010 is to expand our wings to reach out to our esteemed clients by providingservice to their door step. We are constantly working towards providing new services andconsolidating our businesses across industries. As a responsible company we are planning totake some new Green Initiatives to support environmental testing and establish as trustedpartners in progress by enhancing our customers competitive advantage in the industry.

Intertek looks upon moving in 2010 from strength to strength across various industries.

Dilip Gianchandani, Regional Director, Intertek India, Gurgaon

We are looking forward to enter 2010 withfull zest. We are anticipating that we willsee growth prospects of 80-100% if theeconomy is recovering for better. We arealso planning to tap nearly six new marketsin this year to widen the span of ourpresence. We look forward to open up acentre in an overseas market to offerlocalized service to manufacturers of thatnation. The place is yet to be decided butsoon the project will take shape.

Khyati V Bhinde, Director,Unisource Ventures, Mumbai

We are looking at a very bright 2010 interms of our growth and business. We aregoing to open our branch offices in Delhi,Mumbai and Bangalore in this year and weare targeting turnover of around US $ 25million from our India office this year.

Girish Ramkrishnan,Country Manager, MarketFit India, Tirupur

I guess 2010 would be better than 2009which for us was a year of consolidation.This year we are looking at adding knits inour product basket. Any investments fromour side would be on latest value additionmachines as it very quickly justifies itscost and give fast return on investments.

Mukesh Kansal, Chairman,CTA Apparels, Noida

We foresee growth only by the end of2010, as the world economy still hasnot really recovered from the fiscaldownturn and it will take another oneyear to fully recover from its impact. Theend-product manufacturers are stillsuffering as the frequency and number oforders has slowed which in turn hasaffected us as well.

Pawan Jain, CEO, RTCZippers, New Delhi

Optimism – Hopes and Aspirations 2010...

OPTIMISM2010

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With the year 2009 behind us, it is time to re-assess performances and project future growth…After the positive feedback for our debut effort to track 100 upfront apparel exporters last yearwe are compiling the second edition of the AO TOP 100. The listing is more comprehensive thanlast year with most companies willingly coming forward to participate. However, some exporters

still prefer to remain out of the list for reasons best known to them. The effort is targeted to bring moretransparency into the system and give a corporate structure to the apparel export industry.

It cannot be overlooked that the industry is a labour-intensive sector and generates employment to manyunskilled workers coming from small villages around the country. It is well documented that every annualturnover of Rs. 1 cr. requires a minimum of 65 - 70 people in a factory add to it the employment in the supportindustry such as fabric mills, dyers to buttons, zippers and other accessories suppliers to logistic andwarehouse, the list is endless and offers huge employment opportunities… No doubt the importance of boastingthis industry is underplayed and with our ‘AO TOP 100’ listing, we aim to get more recognition for players inthe industry while focusing on core issues that form the structure of the industry like compliance certifications,man-woman ratio and product categories in different manufacturing hubs.

This year we have also added the year of establishment to the details in the listing, which emphasize on thecommitment of companies to the industry. Just by adding another year to the industry, the exporter demonstratesa high degree of loyalty to the business reflecting the company’s, and hence the management’s commitmentto the business. Other new sections are compliance certifications that exporters are holding and theman-woman ratio in factories across the country.

Before analyzing this year’s performance it is critical to recap the performance of the previous year as a baseto move forward…, so below are some interesting references.

RECAP OF MAJOR FINDINGS IN 2009…

The 100 listed companies generated a total turnover of Rs. 17,132 cr. in FY 2007-08 and the collected growthof the group was 11% and employing around 11.88 lakh workers.

As per Apparel Online estimation, total garment export from the country is around $ 12 billion and hencethese 100 listed exporters represented around 33% of total garment exports from the country.

As for the major centres represented on the AO 100 Listing – Delhi-NCR with 37 companies on theList registered the highest collective turnover of Rs. 5,500 cr., followed by Tirupur (22 companies) withRs. 3,834 cr. and then Mumbai (13 companies) with Rs. 2,057cr. and Chennai (11 companies) withRs. 1,780 cr. turnover, respectively.

From Financial Year 2006-07 to FY 2007-08 a large majority of 70% saw growth with only 25 companieswitnessing a downfall in business and 5 remaining at the same level.

While the biggest downfalls in FY 2008-09 were from Delhi-NCR region, the biggest gains too were fromthe centre. Meenu Creations, headed by Anil Peshawari saw 138% in 2008-09 Financial; it was followed byParagon Apparels with 100% growth headed by Roshan Baid. Viraj Exports, led by Shiv Bhargav, saw 77%growth and CTA, Noida under Mukesh Kansal witnessed 74% growth.

Collective projections for FY 2008-09 was at Rs. 17,326 crore.

AO TOP 100REGISTER COLLECTIVE TURNOVEROF RS. 18,673.89 CR IN FY 2008-09PROJECTIONS FOR 2009-10 AT RS 20,744.52 CR

T R A C K I N G A O T O P 1 0 0

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(ALL FIGURES IN RS. CRORE)

1 House of Pearl Gurgaon N/A Deepak Seth Multi Products 314 N/A 1,448 2,000 WRAP, SA8000, ISO N/AFashions Ltd Chairman

2 Gokaldas Bangalore 1978 Rajendra J Woven & Knits 1,071 1,203 1,093 1,200 ISO 2001-2008, 33:67Exports Ltd. Hinduja, MD Bureau Veritas Certification

3 Shahi Exports Faridabad 1974 Harish Ahuja Men, Women and 750 900 910 935 WRAP, Buyer compliant, 70:30(Mkt. Sources) MD Kids Garments ISO 9000:2001, SA 8000:2001

4 Orient Craft Ltd. Gurgaon 1978 Sudhir Dhingra Woven, Knits, Denim 618 740 802 850 We have compliance clearance N/ACMD and Home Furnishing and CTPAT from all our vendors

5 Eastman Exports Tirupur 1983 N Chandran Knits for Men, Women 605 783 793 1,025 ISO 9001, ISO 14001, GOTS- 55:45CEO and Kids Organic certification, Okotex 100,

SA 8000, WRAP6 KPR Mill Limited Tirupur 1984 KP Ramaswami Knits 574 666 751 900 ISO 9001:2000, ISO 14001:2004, 85:15

Chairman SA 8000:2001, Certified byInternational Association forresearch & testing, Certified as aOne Star Export House, GOTS,OEKO - TEX, Ethical TradeInitiatives, WRAP

7 Gokaldas Images Bangalore 1979 Jagadish N Multi products N/A N/A 550 590 GSP ETI and WRAP 15:85Hinduja, MD

8 Bombay Rayon Mumbai 1992 Aman & Prashant Tops in Woven & 395 540 860 1,200 Buyer compliant 20:80Fashions Agarwal,Directors Knits

9 Richa Group N. Delhi 1977 Virender Uppal Fashion Garments 440 455 482 522 ICRA ( Under Audit) and 75:25MD from All buyers

10 Mandhana Mumbai 1984 Manish Fashion Garments 330 430 463 620 ISO 9000, SA 8000, Flo cert, 40:60Industries Mandhana, MD Oeko-tex, Control Union OE-100

Certification, GOTS &Fair Trade certification

11 Texport Overseas Bangalore 1995 Samir & Rajat Woven Bottoms/ N/A N/A 397 397 SA 8000 25:75Pvt. Ltd. Goenka, Directors Jackets/Ladies Tops

12 SPL Industries Faridabad 1994 Vijay Jindal, MD Knit Garments 324 369 369 305 All Major Buyers 50:5013 K Mohan & Co. Bangalore 1973 Raju M Readymade 305 N/A 353 400 Fair Trade Cotton Certified 40:60

(Exports) Pvt Ltd Mahtaney, CEO Garments-Woven14 Texport Industries Mumbai 1978 Sashi Sekhar Woven & Knits 337 309 287 350 ISO 9001:2000, Abercrombie & 50:50

Pvt. Ltd. Director Apparels Fitch, American Eagle, Armani,H & M, Tommy Hilfiger, RobertGraham, Diesel, Reebok/ Adidas,GAP, Target, Primark, Wrangler/Lee, WRAP, Walmart

15 SCM Garments Tirupur 1989 P.P.K. Tee shirts,Tank tops, 200 278 285 365 ISO 9001-2000,ISO 14000, 60:40Pvt Ltd Paramasivam Sweatshirts WRAP, SA 8000, GOTS, Organic

MD Exchange, OEKOTex-Class 1&216 Zodiac Clothing Mumbai N/A Salim Noorani, Knits & Woven N/A 283 283 N/A N/A N/A

Ltd MD17 S P Apparels Tirupur 1989 P. Sundarajan Knits 323 356 274 325 Trading House Certification, ISO 25:75

Limited MD 14001:2004, FLO, WRAP, M&SPremier, Accreditation Scheme,ISO 9001: 2008, OEKO Tex,NABL, Certification of chemical& mechanical testing, DatacolorAccreditation recognised byM&S, Tesco & Wal-Mart

18 Best Corporation Tirupur 1967 R.Rajkumar, MD Knitted Garments 363 N/A 250 300 WRAP 33:6719 Celebrity Chennai 1988 V.Rajgopal Readymade 332 231 250 280 Buyer compliant 20:80

Fashions Limited CMD Garments- Woven20 Venus Garments Ludhiana 1966 Anil Kumar Jain Knitted Garments N/A N/A 230 275 Global security verification, 95:05

- Group MD C-TPAT, Oeko-Tex, GOTSProcessing House-ISO 9001:2000 Certified

21 Sonal Garments Mumbai Pravin Agarwal Knits & Woven 245 230 230 N/A Buyer compliant N/ADirector

22 Modelama Gurgaon 1979 Lalit Gulati, Outerwea, Jackets, 150 150 225 250 Gap Inc, Macy's, USA & 80:20Exports Ltd Sanjay Gulati Skirts/Shorts, Pants, Compliance certifications by

& Gagan Gulati Shirts, Blouses, third party Audit Companies viz.Directors Sleepwear, SGS, Bureau Veritas & STR.

Activewear etc. All the 12 units are compliant one.

S. Name of the Location Year Concerned Products Turnover Turnover Turnover Turnover Compliance DiversityNo. Company of Person FY 07-08 FY 08-09 FY 08-09 FY 09-10 Cerfications (All) Ratio

Estb. (projected) (projected) (Men:Women)

All figures have been obtained from company sources and Contact Communications / Apparel Online is not legally responsible for any misrepresentation.Some figures have been sourced from market and have been specifically mentioned as such. S.No. as per turnover in FY-2007-08.

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23 Poppys Knitwear Tirupur 1973 A. Sakthivel Knitted Readymade 218 220 225 250 ISO-9001-2000, WRAP, SA-8000, 60:40(P) Ltd MD Garments Gots, OE, Oekotex, Sedex

24 Orient Fashions New Delhi 1972 Amit Sethi, Fashion Garments 180 195 214 200 ISO 9001, SA 8000, Buyer 84:16(2002 Director compliance audits by Bureauprop) Veritas / ITS / SGS / GAP Inc./

Target Corp / J.C.Penny25 Creative Mumbai 1975 Vijay Agarwal Fashion Garments 340 375 210 260 Ethical trade initiative/sedex 85:15

Garments MD member ethical trade audit26 Kitex Garments Kerala 1992 Sabu M. Jacob Knitted & Woven 176 167 203 260 WRAP, C-TPAT 60:40

Ltd MD Garments27 Madura Bangalore N/A S.Vishwanathan, Knits & Woven 180 200 200 N/A N/A

Garments CEO28 Pratibha Syntex Indore 2001 Shreyaskar Knitted Casual & 157 213 196 202 SA 8000, ISO 14000, OHSAS 90:10

P.Ltd. Chaudhary, MD Undergarments 18000, ISO 9001, GOTS, OE,Fair Trade, NOP, NPOP, GSV,WRAP, OEKO TEX, AmericanAssociation of textile chemists& colonists

29 Network Clothing Tirupur 1993 Akhilesh Anand Knits 173 190 193 221 WRAP, SA 8000, Oeko Tex, 40:60Company CEO Organic Exchange, GOTS for

organic cotton, FLO for FairTrade cotton.

30 A.I. Enterprises Chennai 1985 HE Haji Iqbal, Knits & Woven 185 195 187 225 ETI (SEDEX), SA 8000 30:70Pvt Ltd MD

31 Radnik Exports N. Delhi 1973 Vinod Kapur Fashion Garments 160 170 170 205 ISO 9001:2008 (across board), 60:40MD ISO 14001:2004, SA 8000:

2001, OHSAS, 18001:2007, OE100, GOTS, H&M, M&S, SEDEX

32 Go Go Bangalore 1991 Rajeev Goenka Knits & Woven 130 156 157 173 WRAP, BSCI,GOTS 35:65International Director

33 Intimate Fashions Guduva- 1997 John Chiramel Bras and Briefs 240 240 151 146 ISO - 9001-2000, ISO 14001-2004 11:89(India) Pvt. Ltd ncheri, CEO

Tamil Nadu34 Orient Clothing Gurgaon 1997 Ravi Dhingra, Woven, Knits 150 150 150 160 Gap, Monsoon, Mother Care, 70:30

Co. Pvt. Ltd MD American Eagle, American Living,Guess, George, J Crew, Next,Urban Outfitter

35 Meenu Creation Noida Anil Peshawari, MD Woven 63 150 150 N/A N/A N/A36 Matrix Clothing Gurgaon 1977 Gautam Nair Readymade 112 137 149 165 BSCI , FLO, Compliant uner 80:20

Pvt Ltd MD Garments law of land37 Gupta Exim Faridabad 1990 Sandeep Gupta Knitted Garments120 120 150 148 181 ISO 14001, GOTS, SUPIMA, OE 95:05

(India) Pvt Ltd MD /Fabrics (Organic Exchange), GAP, OEKO/TEXSTANDARD-100

38 Alok Industries Mumbai 2000 Dipil Jiwrajka Multi products 100 134 140 188 Organic Cotton, OEKO-TEX, 65:35MD ETI-Report on SEDEX

(SMETA), BSCI, GlobalSecurity verifications, EUFlower, SWAN, Fair Trade,SA 8000

39 Mallcom India Kolkata N/A A K Mall, Protective Clothing 390 405 136 150 N/A N/AChairman

40 B L International Noida 1989 Deepak Agarwal Fashion Garments 140 150 133 184 ISO Group, Inditex, Bestseller, 60:40MD Next, Top Shop, Kiabi,

AB Lindex, Mango41 Tubeknit Tirupur 1996 P. Parthasarathi Knitted Garments 150 N/A 125 150 SA 8000, ISO 9001-2000 N/A

Fashions Limited MD42 RBR Garments Tirupur 1997 Senthil Kumar Knitwear-Ladies, N/A N/A 125 145 ISO 9001, ISO 2008, SA 8000, 60:40

MD Mens' & Kids WRAP43 Meridian Chennai 1989 Vinod Sarogi Knits 120 140 123 140 Wrap / Okeotex / BSCI Audited 60:40

Apparels MD / Sedex Listed / GOTS44 Cotton Blossom Tirupur 1997 Philomena, Hoisery Garments 96 115 123 150 ISO 9001:2000, ISO 65:35

(India) Pvt. Ltd. Milton Ambrose 14001:2004, OHSASJohn, 18001:2007, SA 8000:2000,Joseph Antony OEKO-TEX 100, OrganicJohn, Exchange (OE), Global OrganicDirectors Textile Standard (GOTS)


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Collective turnover sees 9% growthfrom last year’s figuresThe collective turnover of the AO TOP 100 exporters for the FY2008-09 is an impressive Rs 18,673.89 cr., higher than projectedlast year. The growth in turnover is 9% higher than realizedturnover in FY 2008-09 and nearly 8% higher than projectedfigures. This is indeed a very encouraging finding as it clearlyindicates that the top end of the export community is doing welland despite all the hurdles that kept the industry on a low,leaders who have either put systems in place or have createdniche in product categories continue to grow. In fact, undeterredby the global retail downturn the collective projections for FY2009-10 stand at Rs. 20,744.52 cr. for these top exporters agrowth of around 11%. And this is only for 94 companies, as sixcompanies preferred to stay silent on projections.

Gains in all segments in FY 2008-09With 49 companies having turnover above Rs. 100 cr., thecombined turnover of the group is Rs. 15,762.90 cr. This is over84% of the total combined turnover of the Top 100. Further asApparel Online estimations put the total apparel exportfigure of India at around around Rs. 55,000 cr., in that contextthe exporters on the AO TOP 100 listing with turnovers aboveRs. 100 cr. account for more than 28% of exports from thiscountry. The TOP 100 listed companies overall account for 34%of total exports from the country.

While there are 32 exporters between the turnover of Rs. 99 cr.and Rs. 50 cr. with total earnings of Rs. 2,203.76 cr, the number ofplayers at the tail end of the listing with turnover betweenRs. 49 cr. and Rs. 27 cr. with a total turnover of Rs. 707.23 cr. is 19.Each segment has shown growth and projections too are higher.This augurs well for the industry and speaks of the confidenceof the top players to grow even in difficult economic times. It maybe noted that these are the very players who have put processesin place and are benchmark for efficiencies. On the other hand,many of the medium players are working in niche areas and havethe strength of product development behind them.

Delhi-NCR again the biggestmanufacturing centreThe AO TOP 100 listing indicates that the Delhi-NCR region isthe most represented region with 31 players making it to thelist. Gurgaon has 10 companies, Noida 12 companies, Delhi

Before moving to the analysis, it is important to note that there are many changes in the listing as new playershave been added and some of those in the last listing do not feature on the list. In fact there are 16 new

names on the listing… So this year’s analysis is not a replica of the same companies’ featured last year. ThoughFY 2007-08 is the basis of growth, some companies have not shared the data so the percentages may be slightlyvaried but the same has clearly been mentioned in each case.

It is a real challenge to put together the AO TOP 100 listing and we bring you some key findings that reflect howthe industry is moving…

6 companies and Faridabad 5 companies. The collectiveturnover of this region as represented in the listing is ofRs. 5,855.63 cr. With this tip of the iceberg, it is estimated thatthe Delhi-NCR region must be having a collective turnover ofaround Rs.15,000 cr. Second most represented region is Tirupurwith 19 companies having a collective turnover of Rs. 2,710.76cr. It is estimated that the total turnover of the region shouldbe around 12,000 cr.

Mumbai is represented in the AO TOP 100 list by 11 companieswith a collective turnover of Rs. 2,758.69 cr. Rough estimationsput the business in the region at Rs. 4,000 cr. Bangalore is thecentre for big players and the 8 companies on the list accountfor a turnover of Rs. 2,954.26 cr. Taking the structure of theindustry in Bangalore in mind, the turnover from the city isestimated at around Rs. 5,000 cr. Chennai has 6 players on thelist with combined turnover of Rs. 719.54 cr. and it is estimatedthat the region is accounting for around Rs. 2,000 cr. worth ofbusiness to the total export turnover of the country.

It is a bit difficult to segregate turnovers by regions as manycompanies have headquarters in Mumbai but operations inBangalore or even Tirupur… Similarly, some Delhi companieshave operations in Bangalore and Chennai. However, theestimates have been based on where the companies haveheadquarters. The remaining players on the listing come fromdiverse centres like Ludhiana, Indore, Hyderabad, Kolkataand Jaipur.

86% Companies expect growthin FY 2009-10Of all the companies listed, only 8 projected either a downfallin their turnovers for FY 2009-10 or same levels of growth and6 companies did not give their projections. The rest 86 companiesindicated growth for the running financial.

50% Companies see growth in FY 2008-09over the last financial yearIt is encouraging to note that 50% of companies saw growth withonly 20 companies witnessing a downfall in business and 16 arenew companies, so there FY 2007-08 figures are not available,the remaining are at the same levels. No doubt, FY 2008-09 wasa difficult year, since companies lost when compared in UScurrency, but it also had some positives as the rupee depreciated

ANALYSIS 2010...

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45 Nahar Spinning Ludhiana 1980 S.P. Jain, MD Knits 917 1,028 121 150 IS/ISO 9001-2000, AEPC Regd 90:10Mills (Group) (Group)

46 Centwin Hosiery Tirupur 1978 P.Palaniswamy Embroidery, Dyeing, 81 96 120 150 PVH, Wal-Mart, OVC 50:50Mill Pvt. Ltd. MD Knitted, Woven,

Printing47 V & S Gurgaon 1992 C. P Gauba Knits/Woven N/A N/A 116 116 ISO 9001, third party audit 85:15

International MD by Intertek & SGS48 Indian Designs Bangalore 1993 Naseer Woven 88 100 108 120 H&M, Columbia, Gap, Esprit, 20:80

Humayun, MD Fatface49 Rolex Hosiery Gurgaon 1965 Vikas Chander Knits Garments 120 105 105 120 N/A 90:10

Pvt. Ltd. & N.Delhi MD50 Indus Intex Bangalore 2008 Virendra Agarwal Woven Shirts N/A N/A 96 125 CTPAT,SGS, Li&Fung, VF 15:85

Pvt Ltd MD & Levis51 CTA Apparels Noida 1993 Dr. Mukesh Woven & Knits 54 95 94 120 ISO 9001-2008, Okeotex 70:30

Pvt. Ltd. Kansal, MD certification (cotton dyed),Okeotex part-II (in process),GOTS, OE Certification, BSCIApporved, SA 800:2008(in process)

52 Jyoti Apparels Delhi/ 1976 HKL Magu, Children & Woven 76 90 94 105 BSCI - STR, SMETA, 70:30Group Gurgaon Rakesh Magu Knitted SEDEX - BV, ITS

Directors53 Esjay Mumbai 1981 Sunil Jhangiani Knitted & Woven, 61 65 90 110 WRAP, SA 8000, ISO 9001 30:70

International MD Ladieswear54 Crystal Clothing Tirupur N/A V.Vijaysekar/ Knits 90 90 90 N/A N/A N/A

Company V.ShriprakashDirectors

55 Pee Empro Delhi, 1982 Tony Uppal, MD Ladies and Kids 75 79 85 110 BSCI, ISO-9000 N/AExports Faridabd Woven Garments

56 Paramount N.Delhi N/A Surinder Fashion Garments 70 75 84 95 BSCI , SEDEX , SGS 70:30Products Mahajan, MD

57 Nancy Krafts N.Delhi 1973 Narinder Pal High Fashion Ladies 41 45 83 96 N/A 95:05Group Singh Woven &

(Pali Singh) MD Knitted Garments58 Bhandari Hosiery Ludhiana 1993 Naresh Bhandari Knits 75 79 80 85 WRAP, BSCI 60:40

Exports Ltd MD59 Prime Tex Tirupur 1989 R.Govintharaaju, Hooded Zip Thru 52 69 76 85 SEDEX, ITS, SGS, TUV SUD, 65:35

MD Jacket, Joggers, MTL. Factory approved forT-Shirt, Pyjama Sets, Mothercare, Mini Boden, NEXT,Bodysuit, Sleepsuit & Paul smith, M & S, Walt Disney,all kinds of Kids wear. Reebok, Hasbro,Bhs & Woolwoth.

60 Allied Group N.Delhi 1967 Hari Kapoor, MD Fashion Garments 70 65 76 83 Charming Shops, Walmart, 40:60JONES, TESCO, NEXT,SEDEX,EVANS

61 Cotex Mumbai 1971 Dilip Trivedi, MD T-Shirts 63 48 72 75 GOTS, Organic Exchange, N/AOEKO TEX, RINA, Buyercertifications

62 Eveline Ludhiana 1976 Rakesh Dumra, Knits (T-shirt, Polo 52 64 70 85 SMETA, BSCI & GSV 90:10International MD Shirt, Sweat Shirt,Top)

63 Shirt Company Mumbai 1984 Shivanand B. RMG 80 90 69 67 SA 8000:2001, ISO 9001:2008 35:65(India) Limited Shetty, MD

64 Jupiter Knitting Tirupur 1957 S.Krishnaraj, MD Knitted Garments 63 67 68 60 ISO, SA8000, WRAP, 50:50Company GOTS & Oeko Tex

65 Shree Bharat Noida 1988 Sanjay Aggarwal Cotton knitted N/A N/A 67 67 Li & Fung 80:20International MD Garments & Sweaters

66 Rainbow Fab Art Noida N/A Amit Oberoi, MD Fashion Garments 67 70 66 75 N/A N/A67 Gupta & Chennai 1984 Ashish Gupta, Fashion Garment of 70 65 65 70 Buyer compliant 20:80

Company Director Ladies and Children68 Linea Fashions Chennai 2002 C Perkinian, GM Knits Underwear 64 60 63 72 WRAP, Organic certification 10:90

(India)69 Acknit Knitting Kolkata N/A D.K Saraf, MD Protective Clothing 43 65 62 70 Buyer and product compliant N/A70 Viraj Exports Noida 1984 Shiv Bhargava Ladies Fashion 30 54 61 80 ISO9001-2000, BSCI, SA8000, 80:20

Pvt. Ltd. MD (Woven/ Knits) ETI71 Beauty Fashions Tirupur 1991 D.Duraisamy, Knits 50 70 60 77 OEKO TEX, WRAP, SA8000, 75:25

D.Subramani SEDEX, TESCO & DISNEYDirectors Approved & Certified factory


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72 Chelsea Mills Gurgaon 1978 M K Jain Knits/Woven- N/A N/A 60 80 Gap, Triburg, Debenhams 80:20MD Kidswear, Men's

Shirts, Denimwear73 Magnolia Noida 1993 Sidharth Mohan Woven, Women & N/A N/A 60 65 Fairwear Foundation, Bureau 70:30

Blossom MD Kids Viretas, Buyer certified74 Maral Overseas Noida 1992 Shekhar Knits 319 320 55 65 ISO9000, FAIRTRADE ( FLO), 90:10

Agarwal, MD ORGANIC (Control Union),Social Compliance on SEDEX.

75 Opera Clothing Mumbai 1996 Chandra Kumar Men's Shirts, Bottoms, N/A N/A 55 65 WRAP, OEKO TEX, SEDEX, 60:40Pvt.Ltd. Jain, Partner Ladies Shirt, Bottom S800, ISO 9001

76 SNQS Tirupur 2005 Elangovan Men's , Ladies and 30 50 52 70 WRAP , SA 8000 , CEDEX and 78:22Internationals CEO Kids Knitted Garments Walmart Green(Exports Division)

77 Dulari Exports Gurgaon 1975 Harish Sawhney Womens Top, Dress, 42 47 51 58 Jones Apparel Group and M & S 70:30Pvt. Ltd. MD Blouses, Skirts

78 Saraf Gartex Jaipur 1972 S M Saraf, MD Knitted & Woven 59 60 50 57 N/A 30:7079 Dee Cee Exports Tirupur 1994 D.Venkatesan, Knitted Garments N/A N/A 50 75 SA -8000-2008, WRAP, SEDEX, 60:40

D.Vardarajan GOTS, Code of ConductDirectors Audit by Walmart, WARNA

CO- Calvin Klein, Walt Disney 80 Paragon Apparels Noida 1996 Roshan Baid, Knitted Sportswear- 35 70 50 65 Certified by Adidas & Reebok 80:20

MD Men/Women81 Ammen Mills Tirupur 1979 K T Men, Women And 51 48 50 40 SA 8000: 2008, ISO 9001:2008 80:20

Karunamurthy,MD Kids Garments82 Celestial Knits & Noida 1993 Rajeev Bansal Menswear, 45 51 49 55 Fully socially compliant 90:10

Fabs Pvt. Ltd MD Ladieswear,Boyswear, Girlswear

83 Kanhaiyalal Jaipur 1962 O P & G P Woven/Knitted N/A N/A 48 45 N/A 70:30Kalyanmal Mittal, Directors

84 Mira Exim Ltd. Noida 1985 A.K. Jain High Fashion Ladies N/A N/A 48 56 ISO 9001-2000, SA 8000:2001 95:05Chairman and Kids Apparel

85 Esstee Exports Tirupur 1992 N. Thiruk- Knitted Ready Made 35 40 45 53 "WRAP, SA 8000:2008“ISO 60:40kumaran, MD Garments 9001:2008"

86 Imperial Garments Hyderabad 1992 Anjana Patodia Knitted Mens/Women 25 17 45 90 ISO 9001, OKO Tex, GOTS & 70:30(GTN Industries) MD & Kids Certified by Nike

87 Mangalam Faridabad 1995 Sharat Jain Knitwear - Mens N/A N/A 45 55 Nano Certified 70:30Ventures Limited MD & Ladies

88 Kandhan Knitss Tirupur 2003 P Kanakaraj T-shirts 42 44 43 51 ISO9001:2008 & SA8000:9001 75:25(NSP Tex) & Dhanapal P

89 Kish Exports Gurgaon 1993 M.K.Lakhwani RMG 76 42 42 40 WRAP Certified 29:71(MD)

90 Akriti Apparels Faridabad 2002 Avanish C. Jain Woven Childresnwear N/A N/A 38 50 N/A 50:50(P) Ltd. Director Apparel

91 Nagesh Ludhiana 1980 Mukesh Mehra Wool, Cotton Knit N/A N/A 34 36 N/A 90:10Knitwears Pvt Ltd Director

92 Sumeet Exports Ludhiana 1990 Sumeet Thapar Babywear 32 32 32 35 Disney approved, gap approved, 70:30(India) MD ct-pat approved,meijers approved,

sedex approved, have organiccertification,marks and spencersapproved unit, metal free unit

93 CBC Fashion Tirupur 2004 T.R. Vijaya N/A N/A N/A 32 45 ISO 9000, SA8000, WRAP, 60:40(Asia) Pvt Ltd Kumar, MD OKO TEX, SEDEX, DISNEY

94 MA'AM ARTS Jaipur 2001 Rajiv & Rakesh Ladies Garments, N/A N/A 32 45 WALMART, JONES, JCPENNY 90:10Dewan,Directors Knits & Woven

95 BNT Connections Chennai 1986 J. Haresh Woven Garments 82 85 32 36 BSCI AUDIT 25:75Impex Limited Bakshani, MD

96 Campari Exports New Delhi 1989 Sunil Mehra,MD N/A 26 35 31 45 BSCI,Li and Fung Internal 80:20Pvt Ltd. Audit and WRAP

97 Cheer Sagar Jaipur 1991 Ravi Poddar Ladies Garments 37 40 28 38 WRAP certified, ISO : 9001-2008 63:37MD approved

98 International Tirupur 1996 Vishal Kumar Woven & Knits N/A N/A 28 33 N/A 80:20Trading Inc. MD

99 Neetee Gurgaon 1994 Animesh Saxena Ladies/Kids Fashion 22 25 28 30 Chico`s, ITS, LV 70:30Clothing Pvt Ltd MD and Casual wear

100 Maharana of India Noida 1982 Lalit Thukral, MD Woven Dresses 22 27 27 30 Buyer compliant 65:35Grand Total 13626.04 14937.4 18673.89 20744.52


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considerably giving an edge to Indian exporters that waspreviously missing. Benefits also accrued as some orders wereredirected to India from China because of their currencyappreciation, wage rate hike as well as increasing recognitionof dismal record of social and environmental compliances.

From a region wise perspective, a majority of companies inChennai saw a downfall in there turnover in FY 2008-09 vis-à-vis the last Financial Year with only 2 companies out of 6 seeinggrowth. In Bangalore, 5 out of 8 companies saw growth with theremaining 3 companies being new on the list. Tirupur has seenoverall growth with 11 out of 19 companies registering growth.

Dividing the Delhi-NCR region into centres, all 6 companies inNew Delhi registered growth in the FY 2008-09 over the FY 2007-08. In Gurgaon out of the 10 companies on the list 6 saw growth,one registered decline, one company remained at the same leveland two companies are new to the listing. From Faridabad,while 3 companies saw growth, 2 companies are new on thelisting. From Noida out of the total 12 companies, 6 saw growth,3 a decline and for the other 3 the data was not shared.

43% Companies show consistentgrowth year-on-yearAO has always advocated that companies who have a soundstrategy in place will continue to see growth irrespective ofglobal scenario, though the growth may be at a modest pace…this is clearly reflected from the fact that 43 companies on ourlisting have shown consistent growth over the FY 2007-08 to FY2008-09 and then projected growth for FY 2008-09 over 2009-10.While 4 companies in Bangalore have shown consistent growth,10 companies have registered consistent growth year-on-yearin Tirupur and only 2 companies in Chennai have witnessedconsecutive growth for two years. In the Delhi-NCR region, 5companies in New Delhi have seen consistent growth, while twocompanies in Faridabad, six companies in Gurgaon and fivecompanies in Noida could show consistent year-on-year growth.

The reason that Tirupur continues to show good results is thefact that buyers are looking at India for value added knits andTirupur is fetching higher UVR’s than Bangladesh and China.Bangalore being a centre for big players, the growth ratio ishigher in the region.

Only 3 companies in the entire listing saw a downtrend over boththe two periods under review, which clearly reflects that theindustry is managed by some very serious players. There are17 players who though saw negative growth in the FY 2008-09over FY 2007-08, are projecting growth for the running FY 2009-10. This is indeed a good sign that companies have worked onstrategies to bring the factories back to the growth path. However,there are three companies that have projected a down fall afterregistering growth – SPL Industries, Orient Fashions and JupiterKnitting – but there is still some time to go before the actualpicture emerges and there could be some changes…, we willwatch out for them next year.

Major growth companiesThe top five companies to show exceptional growth from FY2007-08 to FY 2008-09 are House of Pearl with 360.90% growth,Nancy Kraft with 103% growth, Viraj Exports with 101.92%

growth, Imperial Garments with 80% growth, and SNQS andCTA Apparels with 73% growth each. While Viraj Exports andCTA Apparels featured in our top growth analysis last yearalso, the other four companies are new contenders. In the caseof House of Pearl, the huge growth is attributed to the factthat the company has witnessed huge global growth withoperations outside India adding to its performance. All othercompanies have operations in India and their performance isaccordingly impressive.

Product categoriesAlmost the complete ranges of product categories that aremade in the country are represented on the list. From basicT-shirts to protective garments find a place in the listedcompanies. Many of the companies are working with organiccotton as 19 companies are GOTS certified. While companies inTirupur are more into knits, those in Bangalore, Chennai andMumbai are more inclined to woven garments. The Delhi-NCRregion is catering to a diverse range including knits and woven.Most of the high fashion producers are from this region. Ludhianawhich has 6 players on the listing with a total turnover ofRs. 567 cr. is completely into knitted garments both in wool andcotton blends.

AO TOP 100 – Compliant to buyer standardsIt is very heartening to find that all companies on the list arecompliant to various standards from WRAP, ETI, SEDEX tobuyer specific compliances. 30 companies have wrapcertifications, 38 are ISO compliant and 52 are SA standardcertified. Three companies –Orient Craft (Gurgaon), VenusGarments (Ludhiana) and Kitex Garments (Kerala) – have gonein for CTPAT for security compliance.

It is also interesting to note that many of the companies are multi-certified and that certifications for environment compliances isalso on the rise with 14 companies OEKO Tex certified. FLO certand Fair trade also find mention in the list of certifications. Foran industry that is increasingly going the sustainable way, thefact that players are serious about meeting compliancestandards is positive for growth. Buyers are finding more andmore companies working within international parameters.

Man-Woman ratioStudying the Man-Woman ratio of the AO TOP 100 companiesno real pattern has emerged and though more women areworking in factories in the south, the factories in the north arealso now improving the ratio with increasing representationcoming from women.

Non participantsLike last year some big names did not come forth with theirturnovers like LT Karle, Kaytee Exports, Roverco Apparels,Shakhti Knittings, SM Apparels to name a few for reasons bestknown to them. The effort is to bring more transparency intothe system and make it corporate…with each passing year wehope to tighten the list to be as authentic and true to theindustry as possible.

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Quality, Customer Support,Innovation & Availability4 Strategic Pillars of Wendler

Atop class product backed by a strongmarketing strategy is the mantra forsuccess at Wendler Einlagen, the

Germany-based interlining major withleadership market share in the internationalshirt segment. Having consolidated itsposition in the two Western markets of theUS and Europe, the company is noweyeing Asia for growth as the shirt marketin the industrialized economies begin tostagnate. “It is in countries like China,India, Indonesia, Vietnam that marketevolutions are happening and as thesecountries increasingly take to Westernwear, the opportunities of growing isimmense,” says Dr. Gerhart Wendler,President, Wendler Einlagen.

Structured on four strategic pillars of quality,availability, customer support andinnovation, Wendler interlinings is a name toreckon with in the upper market segment ofshirts, both classic and casual. “No one asks

us about our quality, it is a basic expectationand we have stringent systems in place toassure that the quality never falters, whatpeople do ask is our support to customersand new innovations in line withinternational trends,” says Dr. Wendler. Hegoes on to add that availability in a short leadtime is all the more critical these days ascompanies do not want to stock inventoriesand order at short notice.

Though the current slowdown in the globaleconomy has impacted most businesses,sales of interlining for shirts have not reallybeen affected, as the import of shirts by thetwo major markets of around 1billion shirtsper year was only marginally down by 5% in2009, not significant enough to impactbusiness. Even for Welco Agencies, thepartners of Wendler in India, the brunt ofthe slowdown has been negligible. “Whilebusiness on a general basis was down35-40%, we saw a dip of not more than15% in our area of operation,” aversMahesh Pahwa, MD, Welco Agencies.

One of the reasons for Wendler’s consistentperformance, even in time of slowdown isthat the company has created a nichemarket positioning, concentrating oninterlining for shirts while most otherinterlining companies are handling a wholegamut of interlining. As a specialist in shirtsthe company has nomination from all majorshirt brands and in the case whereapprovals are required, manufacturers arealso giving preference to Wendler as thequality and deliveries are assured. “It is astrategic decision to service a niche marketand we have created a competitive edge inthe segment,” says Dr. Wendler.

R & D Essential GrowthParameterAs a specialist player a lot of attention ispaid to R&D so as to constantly improveupon the technology of the product whilealso keeping pace with new industrydemands. While 60% of R&D is buyer drivento meet new requirements, 40% is bornfrom the desire to improve the durability,comfort and appeal of the product. In thisquest, Wendler has perhaps the widestrange of interlining for shirt collars thanany other company in the world. “We arealways striving to strike the right balancebetween improvement and innovation,”says Dr. Wendler.

Among the latest innovations from thecompany is the V-line series, wherein specialtreatment has been provided for lowshrinkage in classic shirts that are mostly

Dr. Gerhart Wendler, President, Wendler Einlagen; Mahesh Pahwa, MD, Welco Agencies;and Hagen Buergel, MD, Wendler Interlining HK

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worn with a necktie. This is particularlyimportant for comfort. Another innovativerange is the K-line series of bulkyinterlinings for voluminous collars to give ahandmade look in high-end shirts. “Manybrands prefer the voluminous heavycollar to the flat collar for a trendy look,”avers Dr. Wendler.

In touch with global trend forecast providersand shirt manufacturers, Wendler is alsobringing out two trend directions in a yearthat highlight what fashion in Italy, UK, theUS and other upfront countries are talkingabout. Though most shirt manufacturersworking in the international market are notreally using these trends as they producewhat is asked for by their buyers, localbrands find the inputs very useful. “ManyIndian companies are using the directionsfor their developments and this has becomea strong marketing edge in the local market,”says Hagen Buergel, MD, WendlerInterlining HK, who also looks after theIndian market. These trends not only giveindication of collar styles but also the fabric,colour and cut of classic and casual shirtsfrom fashion centres around the world.

Technical SupportIndeed support to customers is at the coreof operations at Wendler and despite beingan exclusive interlining company; Wendleralso trains and provides technical assistancefor fusing. Right from selection of the mostappropriate machine to the maintenance ofthe equipment to the application ofinterlining on different fabrics, theinvolvement is 100%. “Today there is muchmore to selling than just giving a goodproduct and most companies look forward toour pre-production test samples withinstructions on how to achieve optimalresults in fusing,” says Dr. Wendler.

The critical three parameters of fusing –pressure, temperature and timing are alladdressed even before production starts.Adds Pahwa, “We have such a wide range ofofferings in interlining that to select theright one for different fabrics is difficult,our labs support the customers so there isno mistake or delay because of wrongselection of interlining.”

Innovative Approach toPartnershipWith a vision to expand and penetrate themarket in Asian countries, Wendler hasinitiated a special project with its partnersfor inventory management so as to monitorwhich item is fast moving and in which

colour, directly from the partner’swarehouse. “This is a very upfrontapproach to sales and is possible only withthe support of cooperative and transparentpartners like Welco Agencies,” saysDr. Wendler. The involvement is so deepthat sitting in Germany it is possible toknow which item is running low on stocksand which manufacturer bought whatproduct on which date from Welco. “Therelation is so strong that I don’t feel as if weare working with an outsider,” says Pahwa.

Based on a foundation of trust, Pahwa isquick to add that the constant supportfrom Wendler to his feedbacks as Productdevelopment has been the reason forWendler’s success in India. “When westarted operations we asked the companyto give us an economy line to start with asIndia is a very price-sensitive market andthey complied with our request. Todaywe are selling a complete range includingthe high-end collection, purely on brandvalue,” concludes Pahwa.

“No one asks usabout our quality, it isa basic expectationand we have stringentsystems in place toassure that the qualitynever falters…‘‘

Dr. Gerhart WendlerPresident, Wendler Einlagen

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It is a proud moment forBhayani Plastic (BP) as itenters a technical tie-up with

Visconti, a division of PolyoakPackaging to manufacturehangers in India. The mostinteresting aspect of the JV isthat the hangers produced inIndia will be co-branded –carrying the name of bothVisconti and Bhayani Plastic.According to Atul Bhayani, MD,BP, this is the first time that anIndian hanger company hasbeen promoted by a foreigncollaborator in plastic hangersfor the use of logo to be fixed onall hangers. “This is indeed anachievement as stores are notwilling to incorporate any otherlogo,” says Bhayani. The JV willbe officially launched at agrand reception in New Delhion 12th of January 2010.

Bhayani Plastic Enters Joint Venture with Visconti, USAto Manufacture Hangers in India

With a current capacity of 75,000pieces per day, hangers at BPare produced under strictquality and compliant conditionsdedicated to both environmentaland labour-friendly parameters.The new tie-up will add acompetitive edge to the companyas they are being made underVICS certifications, whichimplies that the hangers are forhigh-end products. BhayaniIndia has a long standingcommitment to service andtimely delivery. Earlier onlyimported hangers had VICScertification and the new JV willbe the fifth VICS certifiedhangers to be available in India.

Armed with many patents fordesign excellence, BP is veryexcited with the tie-up asVisconti is already a leadingname in the US market working

with 18 retail programs forreputed retailers like Beall’sDepartment Stores, AcademySportswear, Belk’s, Bon-Ton,Boscov’s, Dick’s Sporting Goods,Dillards, Elder-Beerman,Federated/Macy’s, JCPenney(National Brands), Kohl’s(Childrens and Intimates),Nordstrom, Peebles, SAKS Inc.,Sears, Stage Stores andSteinmart to name a few.

The synergy of an internationalexpertise and the dedicationof an Indian company will be aunique combination. BP carriesforward the commitment ofits founders since 1960,servicing the Garment Industryfor over 25 years. BhayaniPlastic’s sustained customerrelationship is achieved with thesupport of its dedicated teamand responsiveness to thechanging needs of the market.In the globalized era, BhayaniPlastic has focused itself on thethree important C’s –Customers, Creativity andCompetitiveness. In themeanwhile, the company hasreceived 100% EOU status fromthe Government of India,whereby providing internationalprices to the domestic exportgarment market.

“Co-branding isindeed anachievement asstores own thedesign of hangersand are not willingto incorporate anyother logo”ATUL BHAYANI, MD,BHAYANI PLASTIC

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As recession anddownturn in the textileindustry take a backseat

with the beginning of 2010, theaccessories manufacturers areall positive about the growthprospects they had foreseen.The manufacturers are seeingprogress in sales and thenumber of orders they receive.“The recession is certainly overas consumers have startedspending again. Moreover we’veseen higher usage of crystalsand stones in 2009 and as thesituation improves, we expectbetter results in 2010,” saysSanjay Sharma, CountryManager, CRYSTALLIZED –Swarovski Elements.

The manufacturers are seeinggreater demand from thedomestic market unlike theoverseas market which hassought to neutralize the salescompared to where they stoodlast year. Suresh Bhansali,Managing Partner, ConquerorButtons says, “We have seen animprovement of 20-25% in salesover the last three months, butthat is mostly driven by thedomestic demand rather thanexports. Exports are stillsuffering; the domestic demandhas given it a cushioning effect.”

For a few, who have recentlyentered the Indian market thecrunch was less impacting;rather they saw an upwardmovement in their growth chart.Gourav Sarin, Sales Manager,Eswegee Interlining, avers,“We are just three years old inthe Indian market and still inour nascent stage, so wedidn’t really see any downturnin our business. Moreover, weare, presently, adding onnew customers and haveexperienced a growth of 30%since last year. For us it’s justthe beginning and we are seeingdramatic improvement.”

The accessories this season isall about big when it comes to

Accessories Manufacturers Back on Track as Sales GrowThe situation improves for the accessories manufacturers as the market starts to recoverfrom recession, the buyers surface back and good orders come in.

stones and buttons while forinterlining the demand is morefor light weight garments.

Buttons manufacturer,Rajat Vora of FashionAccessories India Pvt. Ltd.unveils, “Presently, lot of metaltrims are in fashion. Like MetalBuckle, Metal Plate, Die CastedStuds, Die Casting Buttons, etc.Overall fashion in industry ischanging for more and more metaltrims on garments. We are gettingorders mainly from Killer Jeans,Kuttons, Numero Uno, Ruff, Bare,DJNC, etc.” Further-more,Suresh Bhansali adds, “Formalbuttons, sheet or pearl buttons,fabric buttons are in demand. Anew concept of recycled buttonshas also been introduced which isbeing accepted widely. Thebuyers that have started placingorder with us are Fila, Adidas,Decathlon, Gokaldas, Arrow, USPolo, Park Avenue, Cherokee,Zapp to name some.”

For sequins and beads, SanjaySharma says, “Fancy largestones are in demand. Theasymmetrical cuts and tear dropshape are most liked by thecustomers. People are moreinterested in designs which aretraditional and large. Ourbuyers are mostly from the

fashion world, in terms ofbrands we’ve got Levis, UCBand Titan watches”.

Sukesh Kumar, MD for South& South East Asia, KufnerInternational reveals,“Interlining for products likemen’s and ladies light wear is indemand. Our buyers listincludes Josa Banks,Peerless Clothing and otherprofitable retailers of USA.”While in terms of thread,Akshay Kumar, NationalManager, Madeira India Pvt.Ltd. says, “The product whichgives value addition along someniche edge to the garment hadshown some demand, likemetallic or wool acrylic threads.”

The manufacturers are now,after the period of slowdown,experiencing a rise in the sizeof orders they are receiving.According to Shakti Jain,Director, Great EasternImpex, “There has been a 5%growth in terms of size oforder, which will help us meettargets set for this year.”While, on the other hand,Gourav Sarin says, “Eventhough our competitors haveseen a dip in business thisyear, the size of orders for ushas certainly increased.”

The New Year is likely to bringa new ray of hope for themanufacturers as sales areanticipated to grow.

Large stones and chunky accessoriesare in demand

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Institute of ApparelManagement, Mumbai (under

the aegis of AEPC) has offerednew specialized courses likeFashion Design for Media andFashion Retail Management. Theceremony which wasinaugurated by ShatrughanSinha (MP), the courses willbegin from the academic year2010 onwards for which IAM,Mumbai, has receivedencouraging response.

The two PG programmes inFashion Design & Management& Apparel MarketingMerchandising will have 15seats each whereas the UGprogramme in Fashion &Lifestyle Design will have 25

IAM Mumbai Offers New Specialized Courses in Fashion Designwith International Universities

seats all together. These courseshave added a new dimension todomestic brands and retail thatare looking for betterprofessional understanding oftheir product and brand.

According to Premal Udani,Chairman, IAM, the institutionhas joined hands with leadinginternational educational bodiesincluding Edexcel UK, RMITAustralia, Wolverhampton UK,George Brown College & OntarioCollege of Arts & Design,Toronto Canada. In 2009, IAMsigned a path breaking MOUwith IGNOU to develop aseparate Fashion and DesignManagement Centre to evolve acontemporary programme in

Fashion Design Managementstarting from April 2010.

The event saw some prominentfaces like Dr. Darlie Koshy(DG, IAM & ATDC), Rakesh Vaid(Chairman – AEPC),

Ashok Rajani (Vice Chairman –AEPC), Priya Dutt (MP),Indu Shahani (Sheriff ofMumbai), Prof. Vijay Kapur(Advisor to V-C, IGNOU) andvarious leading exporters.

The IAM and AEPC team with the dignitaries at the launch

The much-awaited Knitwear TechnologyMission (KTM) in Tirupur has been

inaugurated by the Apparel Export PromotionCouncil Chairman Rakesh Vaid. KTM willfocus on engaging newer and greenertechnology in manufacture, increasing thedesigning capability of knitwear sector aimedat higher value addition and also to bringround the year business.

KTM would provide various support servicesto knitwear sector including research, training,design development, testing & certification,knowledge service and investor facilitationservices on non-profit basis. Also, varioustraining programmes and specialized courseswill be offered to student community to becomeindustry-ready professionals.

A brainchild of AEPC, the KTM headquarterswill help the knitwear manufacturers todiversify more into the production of apparelsmade of man-made fibres and thereby givevalue-addition to their product portfolio.

Padma Shri and KTM Chairman A Sakthivel,who is also the President of FIEO said thatthe Mission would be a driving force for thegrowth of knitwear in the years to come sinceit would give adequate importance to productdevelopment using newer fabrics as well asimpart technical training to the businessmenin the sector.

Knitwear Technology MissionLaunched in Tirupur

“A Centre of Excellence named Institute ofApparel Management (IAM) for HumanResource Development would be set up at theKTM building shortly,” said Vaid. “Our aim is tocreate more skilled young work force neededfor growth of Apparel Industry,” he added.

To promote production of value-added textileproducts, AEPC signed a Memorandum ofUnderstanding (MoU) with Pailung MachineryMill Ltd., Taiwan for providing latest machinesand technology support.

Meanwhile, the AEPC has sought grant fromthe Central Government to further strengthenthe activities of KTM by seeking grant ofRs. 20.48 crore to improve its infrastructure,said AEPC Secretary-General V.K. Singh.

Newly constructed building for AEPC-KnitwearTechnology Mission in Tirupur

Union Textiles Minister DayanidhiMaran said that the Indian textile

sector is likely to get foreign directinvestment to the tune of Rs. 25,000crore over the next five years. Briefingreporters after inaugurating theNational Handloom Expo at Quiad-e-Millath College for Women in Chennai,he said the Government has initiatedsteps in this regard.

In a bid to promote handlooms andimproving the livelihood of weavers, theMinistry of Textiles has beencelebrating Handloom Week sinceDecember 21, he said. Handloom exposare being organized in 22 places acrossthe country, with each exhibitionexpecting revenue of Rs. 3-4 crore.

On the progress of the proposedintegrated textile park atKancheepuram, the Minister said,“We are waiting for dates from ChiefMinister M. Karunanidhi to lay thefoundation,” he added. The expo wouldshowcase silk handloom products fromSouth India and West Bengal.

Rs 25,000-cr FDI likelyfor Textile Sector in5 Years: Maran

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TOTAL GLOBAL APPAREL IMPORTS BY THE US

Type of Jan.-Oct. Jan.-Oct. % changeApparel 2008 2009

Qty Value Qty Value Qty Value

Cotton 11,704.11 61,425.27 10,545.95 53,476.01 -9.90 -12.94

Wool 248.00 3,715.91 206.00 2,706.36 -16.94 -27.17

MMF 7,058.49 18,542.18 6,913.72 16,777.37 -2.05 -9.52

Silk & Veg 402.80 1,785.14 265.60 1,185.90 -34.06 -33.57

Total 19413.41 85468.50 17931.27 74145.64 -7.63 -13.25

Qty & Value in mn M2 & US $

Despite the overall feelingof optimism, thereflection of the same is

yet to be seen in actual importdata into the US. For the reviewperiod Jan.-Oct. ’09, imports bythe US was down (-) 13.25% invalue and (-) 7.63% in volumes.The average UVR is also downfrom $ 4.40 to $ 4.13. Segmentwise the UVR moved from $ 5.25last year to $ 5.07 under thereview period this year forcotton items. This is indeedbad news for the industry ascotton prices in India riseconsistently making it difficultfor exporters to meet offeredprices at the time of orderplacement. On one hand theprices that buyers are willing topay is on the decline and on theother hand fabric prices forcotton is sky rocketing.

India’s Exports to the US during Jan.-Oct. ’09 Sees QuantitiesIncrease 4% Even as Value of Exports Decline (-) 7.63%

Interestingly, not even oneproduct category saw growth inthe imports to the US during thereview period. For individualcountries also the downslidewas greater than the gains.Except for China which sawsome growth (1.42%) no othercountry under review was ableto increase exports to the US.With two months left, exportersare hoping that the holidayseason will bring in some respite.

Apparel exports to the US inJan.-Oct. ’09 analysis

IndiaTotal exports from Indiaduring this period sawgrowth of 4.01% in quantityterms though value wise thecountry registered a declinein exports of (-) 7.32%.

India’s UVR stood at $ 3.16for the period, down from$ 3.54 last year.

During the period, Indiaregistered maximum growthin legwear with 39.81%increase followed bypositive exports in babies’wear (25.80%), ladies

skirts (15.47%) and ladiesdresses (13.62%).

Trousers registered thehighest negative decline of(-) 23.26%. Besides, exportsof men’s shirts, sweater andT-shirt also saw decline of(-) 20.14%, 17.89% and11.91%, respectively.

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ChinaThe country saw growth of1.42% in value and 8.47% inquantities. The UVR stoodat $ 2.74.

Categories that did wellinclude T-shirts with 25.80%growth, undergarments with20.30% increase, and trouserswith 20.65% rise in exports.

Most other categories couldonly register negative growth.Suits/Ensembles (-) 24.30%,ladies skirts (-) 23.46%,nightwear (-) 20.94%, jackets& blazers (-) 19.21%, ladiesblouses (-) 11.55% andbabies wear (-) 10.14%.

BangladeshThe country registeredmarginal decline of (-) 0.13%growth in value; quantities toohave seen a downward trendof (-) 2.86% in volumes duringthe review period. UVRduring the period was $ 2.48.

Categories that posteddouble digit growth duringthe period include Suits/Ensembles (77.04%), ladiesdresses (31.66%), babies’wear (29.02%) andnightwear (26.30%).

Some categories that postednegative growth during theperiod were legwear (-) 36.42%and undergarments with(-) 15.07% negative growth.

PakistanThe country posted anegative growth of (-) 12.40%in value in its exports to theUS during the defined

APPAREL Total Exports to USATYPE Imports

by USA China India Bangladesh Vietnam Sri Lanka Pakistan

Babies Wear -5.04 -10.14 25.80 29.02 0.81 -11.26 -8.24

Foundation

Garments -9.56 -1.63 -7.48 2.33 -1.01 11.26 -

Jackets &

Blazers -12.83 -19.21 -6.69 2.49 -16.38 -38.31 3.78

Ladies

Blouses -10.59 -11.55 -3.20 -1.79 10.76 -1.18 7.46

Ladies

Dresses -3.85 -6.52 13.62 31.66 16.02 1.57 -15.92

Ladies Skirts -16.64 -23.46 15.47 8.28 5.48 -4.29 9.85

Legwear -8.08 11.70 39.81 -36.42 -37.11 - 3.12

Men’s Shirts -14.90 4.12 -20.14 -7.36 -5.50 -14.85 -11.28

Nightwear -13.93 -20.94 -11.51 26.30 6.22 -37.63 -21.99

Suits /

Ensembles -30.64 -24.30 -1.20 77.04 -19.11 -57.32 -47.91

Sweaters -24.26 -1.00 -17.89 -2.49 92.32 -88.28 -27.17

Trousers -13.51 20.65 -23.26 5.63 -3.67 -15.58 -17.35

T-Shirts -13.35 25.80 -11.91 -10.85 -3.71 -33.27 -15.98

Undergarments -15.09 20.30 -1.52 -15.07 97.86 -14.68 -10.20

ITEM-WISE PERCENTAGE INCREASE IN APPAREL IMPORTSBY US: OCTOBER 2009

months as compared to thesame period last year. Volumesalso declined by (-) 7.85%.The UVR stood at $ 2.05.

The category that posted thehighest growth during theperiod was ladies skirts withgrowth of 9.85% increase.Other growth products wereladies’ blouses with 7.46%growth, jackets & blazers3.78%, legwear with 3.12%.

Most other categories broughtlosses to Pakistan.

Sri LankaDuring the period, Sri Lankaregistered negative growth of(-) 15.28% in value and(-) 16.37% in volumes.

The UVR for the periodwas $ 4.64, the highest inthe region.

Foundation garments with11.26% growth are the only realgrowth sector of the country.

VietnamVietnam registered a declinein exports of (-) 3.36% invalue while seeing a positiverise in quantities of 4.71%during the review period.

The country registered anUVR of $ 3.18 for the period.

During the review period,Vietnam registered maximumgrowth in undergarments andsweaters with 97.86% and92.32% increase, respectively,

Legwear registered thehighest negative growth of(-) 37.11%. Besides, Suits/Ensembles which also sawdecline of (-) 19.11%.

Qty & Value in mn M2 & US $

TOTAL APPAREL EXPORTS TO THE US BY INDIAAND ITS COMPETITORS

Country Jan.-Oct. Jan.-Oct. % change2008 2009

Qty Value Qty Value Qty Value

India 749.98 2,656.30 780.06 2,461.86 4.01 -7.32

Bangladesh 1,219.18 2,937.17 1,184.34 2,933.33 -2.86 -0.13

China 6,681.88 19,611.67 7,247.71 19,890.09 8.47 1.42

Pakistan 582.83 1,255.27 537.09 1,099.56 -7.85 -12.40

Sri Lanka 320.06 1,466.98 267.65 1,242.84 -16.37 -15.28

Vietnam 1,289.29 4,438.99 1,350.04 4,289.78 4.71 -3.36

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While presenting theAwards, UnionMinister for Textiles

Dayanidhi Maran stressed thatthe achievements of the sectorare the result of combinedefforts put in by entrepreneurs,support of valued buyers, hardwork by the craftspersoncoupled with cohesive policiesframed by his Ministry.

Maran appreciated the “FutureRoad Map” prepared by EPCH(Export Promotion Council forHandicrafts) for increasingexports and advised EPCH todiversify to new markets likeLatin America, Africa and Gulfrather than depending only onthe traditional markets like USand Europe. He urged EPCH toprepare a long- and short-termstrategy for Latin America foropening warehouses,showrooms and other marketingnetwork so that exports canmove smoothly and locationaldisadvantage is overcome. Healso suggested that “Towns ofExcellence” and “Mega Clusters”like Jaipur and Anantanag(Kashmir) announced by theMinistry of Textiles should bestrengthened by EPCH byproviding facilities forimprovement of product, design,quality and also providingmarket platform through theme-based trade shows.

The Minister also emphasizedon the need for linking healthscheme for the crafts personswith exports so that betterenvironment can be created forthem. Maran assured theEPCH and the exportingcommunity of full support forbringing back the exports to thelevel which existed in 2007.

166 Export Awards to Handicrafts ExportersConsecutive Award to Ozone International in Textile Segment for 3 YearsThe 16th Annual Export Awards were conferred to 166 handicrafts exporters for their great performanceduring the last three years – 2005-06, 2006-07 and 2007-08 – by EPCH recently in Delhi.

The handicrafts sector has gonethrough a bad patch during thelast year as the exportsdeclined more than 48%primarily because of economicrecession in the main markets,viz. USA and Europe andappreciation of rupee value vis-à-vis dollar. The Government ofIndia had announced a stimuluspackage and other measureslike “Focus Products Scheme”,rationalization of drawbackrates, etc. to help the exportcommunity. As a result, declineis now restricted to 15% duringthe period April-November 2009.

Raj Kumar Malhotra,Chairman of the Council,highlighted the specificmeasures taken by EPCH forboosting exports such ascapacity and skill developmentprogramme, setting up of 25 newproduction clusters, developingand creating new product linesbased on natural fibre, inaddition to aggressive marketingthrough exhibitions, fairs, buyer-seller meets, stand alone shows,folk crafts festivals and brand

and generic publicity andproduct specific catalogues forpromotion of exports from thissector, in which more than 6million people are directlyemployed and many moremillions in allied industries tosupport exports.

Rakesh Kumar, ExecutiveDirector, EPCH, was positivethat the prevailing scenario inthe industry indicates that thereshould be a completeturnaround in the downtrend inexports with the beginning ofthe next financial year.

Vasudevan, MD, India Merchandising Services receiving the Life Time Achievement Awardfrom Textile Minister Dayanidhi Maran at the award function

Awardees inTextile-basedHandicrafts2005-06

Krishna Sales Corporation,NoidaM&A Orient Accessories,NoidaOzone International,New DelhiRamakrishna Paramahamsa& Co, Seetharamapuram,Andhra PradeshSri J.J. Lakshmi & Co,Seetharamapuram,Andhra PradeshGlobe Enterprises, New DelhiMalani Impex Inc., JaipurJayanita, Delhi,Globe Enterprises, New DelhiMalani Impex, JaipurNeerja International, JaipurPromila Emporium, New DelhiCreative Creations, Varanasi

2006-07IACS, NoidaSri Devi Exports,Rajahmundry,Andhra PradeshOzone International,New DelhiSri J.J Lakshami & Co,Seetharamapuram,Andhra PradeshRamakrishna Paramahamsa& Co., Seetharamapuram,Andhra PradeshMalani Impex Inc., JaipurM&A Orient Accessories,Noida

2007-08Ozone International,New DelhiMalani Impex Inc., JaipurHouse of Incas, New DelhiJC Antiques & Crafts, Jaipur

AWARDEVENT

Export Performance ofHandicrafts Industry

The exports of handicrafts duringApril-November 2009-10 haveshown a decrease of Rs. 268.25cr. from Rs. 4680.37 cr. toRs. 4412.12 cr., a decrease of5.73% in rupee terms over thesame period last year. And in dollarterms, the exports decreased byUS $ 162.09 mn., from US $ 1074.39mn. to $ 912.30 mn. registering adecline 15.09% over the similarperiod last year.

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RESOURCECENTRE

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Unisource Ventures, a buyinghouse based in Mumbai,

started its operations in India inFebruary 2009 with an aspirationto become a procurementpartner for internationalretailers, brands, wholesalersand importers. The idea behindinitiating the venture was tocreate a holistic stop forinternational retailers/brandswhich offers apparel as well asretail solutions.

Unisource has its roots in beingthe global sourcing andoperations office for Steve &Barry’s. Today, Avi Sonpal theformer MD of Steve & Barry’sbuying operations in the regionand Khyati Bhinde alsoassociated with the same arepositive that they can take theirnew venture to similar heights.“We are just a year old in Indiaand with economy improving;we expect a growth of 80-100%,”says Khyati Bhinde, Director,Unisource Ventures. Thecompany is also consideringopening up of a centre abroadto offer localized servicesand create an overseaspresence of their own.

At present, Unisource Venturesis working with apparelcompanies based in Spain, theNetherlands, USA, Australiaand New Zealand and furtheraims to tap six new markets bythe next financial year. Theproducts that the companyoffers is a very wide range frombasic polos to sequined dresses.Its apparel sourcing offeringsinclude knitted, woven,sweaters, outwear, innerwear,and accessories for men,women and children.

With years of experience behindthem the team has also been apart of launching and managingcelebrity lines like Bitten bySarah Jessica Parker, Dear byAmanda Bynes, Eleven byVenus Williams, Starbury byStephon Marbury, Wonderwallby Laird Hamilton and Bubbagolfby Bubba Watson. Khyati is

Unisource Ventures Aims to TapSix New Markets in 2010

Delhi-based buying officeInterconti Project has

started sampling for specializedproducts in an effort to expandtheir offerings to buyers. “Weare looking at products likesportswear with technicaltextiles, medical applicationgarments like blood stain proofcoats and other items that canadd value to our sourcingbasket,” says Rajkumar Rai,GM Interconti Project. Thecompany which is working inthe German market sources forBetty Barclay, Sports 2000, PMT,Miles and Eisel Gmbh.

Currently the buying office isinto high fashion garments.Beaded and sequined dressesare sourced at FOB Euro 30-35onwards, while tops are in the

confident that they canhandle similar operations intheir new setup.

Unisource specializes in trendforecasting, design presentationand story boards, textile designand CAD services, apparel, graphicand technical designs also. Itoffers quality assurance likefabric inspection, pre-productioninspection, pilot inspection,inline and midline inspection andfinal random inspection. “Theidea is to give complete productmanagement services to thebuyer,” says Khyati.

Their main focus is to get buyingcontracts for the Indianexporters from the overseasclients by adapting to theirprocess, systems and productrequirement. Unisource, atpresent, is looking forward tojoin hands with new small ormedium sized vendorsspecializing in performancewear, swimwear, beachwear andwoollen garments. “This task isa real quest as it is difficult tofind vendors which manufacturethese products, but we hope toadd these product lines in theNew Year,” concludes Khyati.

Interconti Project Looking to ExpandMarket Reach into Specialized Products

range of Euro 15-20 upwards.The company also deals inleather garments with FOBprices at Euro 60 and above.The urge to enter a new marketsegment was brought on by thefact that their existing buyersare placing good orders fortechnical textile-basedproducts in China and with thecountry becoming expensivethere is scope to bring thebusiness into India. “From theresponse that we have receivedfor our sampling we are veryhopeful that orders shouldcome in,” says Rai.

Some of the directions forproduct development includeultraviolet protection, anti-bacterial, bamboo fibres andorganic cotton.

Two styles developed by UnisourceVentures for its buyers

Kid-safe zippers from Tex. - Apparel Resources

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