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Textiles Minister K S Rao Inaugurates AEPCATDC Smart Bhawan

The Union Minister of Textiles Dr. K S Rao inaugurated the AEPC-ATDC Smart Bhawan in Faridabad on September 26 . The AEPC-ATDC Bhawan and the new concept Knitwear Specialty Centre launched is a speaking example of Apparel Training and Design Centre (ATDC)s commitment to the textiles industry. While inaugurating the Centre, Dr. Rao said that the ATDC facilities created here for short and long-term training programmes and setting-up of the ATDC Knitwear Specialty Training Centre and the Textile Testing Lab is a very timely and significant step and will go a long way in improving the quality of training programmes along with helping this robust cluster in future strategies and growth. Acknowledging the presence of domestic and export apparel manufacturing clusters in Faridabad, notching up around Rs. 3000 crore exports, the Minister emphasised the need for product diversification and skill development in the sector which at present lacks supply of skilled hands. The AEPC-ATDC Smart Bhawan situated amidst a cluster of Apparel Export Units in Faridabad, which alone boast of Rs 3,000 crore worth apparel export potential, has over 50 apparel export units and 30 fabric processing units employing over 60,000 people in the cluster. In his keynote address, Dr. A. Sakthivel, Chairman, AEPC, ATDC & IAM, said, "I am happy to point out that at the AEPC-ATDC Smart Bhawan, India's 1st Knitwear Specialty Training Centre and 1st ATDC Textile Testing Lab in the NCR are being launched and this will serve the youth by giving them access to newly approved NCVT Curricula and stateof-the-art training infrastructure while extending services to the nearby ap-

The Union Minister for Textiles, Dr. Kavuru Sambasiva Rao unveiling the plaque to inaugurate the AEPC-ATDC Smart Bhawan, in Faridabad on September 26, 2013. The Secretary, Ministry of Textiles, Ms. Zohra Chatterjee and the Chairman, AEPC, Dr. A. Sakthivel and Dr. Darlie O. Koshy, Director General IAM & ATDC, are also seen. The cluster of Apparel Export Units in Faridabad alone boasts of Rs 3,000 crore worth apparel export potential, has over 50 apparel export units and 30 fabric processing units employing over 60,000 people. Indias knitwear export market is growing rapidly. The knitwear production comprises of about 45% of the total exported volume of apparel. With around 5,000 knitwear factories already set up in India and many more foraying into knitwear production, numerous skilled hands will be required. parel industry cluster." Ms. Zohra Chatterji, Secretary, MoT, later released the NCVT approved curricula for knitwear course, trainers manual and trainers handbook. Ms. Chatterji observed that Indias knitwear export market is growing rapidly as the knitwear production comprises of about 45% of the total exported volume of apparel. With around 5,000 knitwear factories already set up in India and many more foraying into knitwear production, numerous skilled hands will be required. In this regard, ATDC has taken timely steps to launch NCVT approved Knitwear Courses, Trainers manual and Trainees handbook, which will set a new direction and help apparel expor ters with Industry ready workforce. NCM-OCTOBER 2013 85 In a bid to motivate the apparel factories in India for the adoption of training and implementation of AEPC DISHA, Dr. Rao distributed the DISHA adoption Certificates to the DISHA Champions. As of now, 320 units have been reached out for the training and implementation under project DISHA. 167 companies have completed the first phase of training and are ready for assessment. The six days training programme/ workshop aims at capacity building and greater awareness for the effective implementation of the programme. DISHA Champions are the managers of the companies who are chosen from the employee pool which includes professionals from human resource, administration, sourcing and testing departments.

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The Scheme for Integrated Textile Parks to Continue in the 12th Plan
The Cabinet Committee on Economic Affairs has approved continuation of the scheme for Integrated Textile Parks (SITP) in the 12th Five Year Plan and sanction of new projects for utilizing Rs. 717 crore the balance left in the 12th Five Year Plan allocation, after meeting committed liabilities of the sanctioned 61 parks. The CCEA also approved additional grant of Rs. 10 crore to be given to existing parks for setting up apparel manufacturing units. Rs. 50 crore has been allocated for this purpose. The overall impact and progress of the scheme for integrated textile parks had been positive and the scheme had been successful in terms of leveraging private sector investment, employment generation and creation of needbased, product based world class infrastructure for the industry. With the increasing costs of production in established clusters and heightened emphasis on environmental compliances, there is a growing need for establishment of green field textile parks that would address both these constraints. The Union Minister for Textiles chairing the Conference of State Ministers of Textiles, in New Delhi Conference, Dr. Rao said that the Technology Upgradation Fund Scheme (TUFS) has been notified. Earlier, in August this year, the Cabinet Committee on Economic Affairs gave its approval for continuing the TUFS during the 12th Plan period with a major focus on powerlooms in accordance with the Budget announcement for the financial year 2013-14. A major feature of the Scheme is that to promote indigenous manufacturing of the textile machinery, Interest Reimbursement (IR) on second hand imported shuttleless looms shall be reduced from 5 percent to 2 percent. On the other hand, for new shuttleless looms capital subsidy would be raised from 10 percent to 15 percent, IR from 5 percent to 6 percent, Capital Subsidy from 10 percent to 15 percent and margin money subsidy from 20 percent to 30 percent with an increase in subsidy cap from Rs. 1 crore to Rs. 1.5 crore. Dr. Rao said that the Ministry has decided to increase the production in sericulture from 23 thousand tons to 33 thousand by the end of 12th Plan. He was also happy to inform that the production of yarn is beyond the requirements of the nation. The Minister added that in the recent past the handicrafts exporters conNCM-OCTOBER 2013 86 veyed to him that they wanted a warehousing facility in one of the countries of Latin America costing about 100200 crores which would be spent in about five years. He added that he has taken up this issue with the Finance Minister and they are in support of it and I think we will be very soon getting budget for that also and construct a warehousing facility possibly in Uruguay by which the handicrafts exporters have assured me will double the exports from 17,000 to 34,000 crore in less than three years. Highlighting the issue of skills training, Dr. Rao mentioned that we should concentrate more on skills training. He mentioned that the Ministry is encouraging private institutions and industries for the same. We told them that we will give them money for training at the rate of Rs. 10,000 per trainee and they are very happy that they will undertake the training, informed Dr. Rao. The Textiles Minister also informed the media that the Cotton Distribution Policy has been put before the cabinet. He was also happy to inform that Union Minister for Rural Development Shri Jairam Ramesh has agreed to integrate sericulture workers, where the farmers are marginal and small scale with the benefits of Mahatma Gandhi National Rural Employment Gurantee Act (MNREGA).

Conference of State Ministers of Textiles held

The Union Minister of Textiles Dr. Kavuru Sambasiva Rao chaired a Conference of State Ministers of Textiles held in Vigyan Bhawan recently. After day-long discussions with the State Ministers and Secretaries of Textiles, Dr Rao said that the Ministry has conveyed to the state government representatives to encourage investment in textile sector in various sectors including handloom, handicraft etc. Speaking to media persons after the

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Apparel Exports Grow by Union Textiles Minister opens New Minerva Mill in 14.95% in September Hassan, asks textile employees to develop skills 2013 : AEPC K. Sambasiva Rao, Union Minister for Textiles, has called upon employees
Chairman AEPC, Dr A Sakthivel has expressed happiness over the growth of exports. Lauding the efforts of the expor ters and Government Dr. Sakthivel said, Apparel Exports for the month of September 2013 grew by 14.95% registering to the 1.11 billion US $ for September 2013. This is the sixth consecutive months where garment exports grew at an average of 13%. Even, the Exports led employment grew by 6.5% for the month of April- June 2013 (Labour Bureau Quarterly Reports July 2013.). We have organised fairs last month, we went to BSM New York and Spain and we got the positive signals of the revival of the economy in USA and EU. Requesting the Government, to put exports in the priority sector - which was accepted by the Padmanabhan Committee - to solve the problem of credit crunch for the Industry. Dr Sakthivel assured that with the support of the Government we would be meeting the export target. of a textile mill owned by the National Textiles Corporation (NTC) in Hassan (150 kms from Bangalore) to develop skills for higher salaries and better job opportunities. The Minister was in Hassan to inaugurate New Minerva Mill - a Rs 260-crore composite unit for spinning and garmenting - in the Special Economic Zone. This is the first unit of state-owned NTC which is located in an SEZ. The unit has been set up to export shirts under NTC brand 'Entyce' to the US and Europe markets. I will provide funds to train labourers. Once you develop skills, you need not have to struggle to get your jobs regularised. The company will regularise your services if you exhibit your skills. No industry will opt to lose its skilled labourers, Mr. Rao said while responding to the employees demand for higher salaries and regularisation of services. He also appealed to the labourers to work towards increasing profit. If the industry makes profit, I will ask them to share it with the employees. Your salaries and emoluments will grow as long as the industry earns profit, he said. Stressing the need for a boom in the sector, the Minister said: This unit is 100 per cent export-oriented. The value of Indian rupee has dipped with the decrease in export of Indian products. If our textile units do well, the value of rupee will also go up, he said. There are 550 workers in the spinning and garmenting unit. The Minister promised the employees that he would sanction Rs. 170 crore to set up a processing unit on the campus. The former Prime Minister H.D. Deve Gowda, who was elected from Hassan Lok Sabha constituency in 2004, said the SEZ was sanctioned to Hassan during his tenure. H.S. Prakash, MLA, stressed the need for treating effluents. People living around the industrial area have been complaining about water resources being polluted following the discharge of untreated waste into it, he said. Earlier this month, on October 06, 2013., the Union Minister inaugurated Kaleeswarar B Unit of National Textile Corporation, in Sivaganga.

The central government announces Rs.1,000crore textile package for Karnataka

Bangalore : The central government has granted Rs.1,000 crore as a special textile package to Karnataka for the revival of nine spinning mills and converting cooperative loans given to beneficiaries into equity shares. "Of the total amount, Rs.10 crore will be paid towards dues raised from state run banks to build the integrated textile park at Doddaballapur near Bangalore and to set up textile parks and skill development centres across the state," said state Textiles, Ports and Inland Water Transports Minister

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Baburao Chinchansoor in a statement from New Delhi. The minister participated in a day-long conference of state textile ministers in New Delhi. "A part of the grant will be used to increase minimum wage for poor weavers, pay arrears of incentives and subsidies to investors," Chinchansoor said. The state textiles ministry plans to set up an international textile park at Yadgir and a skill development centre at Gulbarga in the northeast region of the state with funds from the special package. "The funds will also be used to train unemployed youth in skills required by handloom and powerloom units," the minister noted. As per the National Handloom Census 2009-10, there are 1.79 lakh Handloom Households (sharing 6.43% of all India) which is far decreased from 2.16 lakh in 1995-96 (which shared 8.55% of all India) and further decreased from 1.92 lakh in 1987-88. Though, the handloom workers reported as 2.04 lakh in 2009-10, it is expected to be around 5.00 lakh in 2012-13 as compared to 4.63 lakh in 1995-96 and 3.37 lakh in 1987-88. Loom population reported in 2009-10 was 1.90 lakh which is expected to be around 2.56 lakh now. The State is currently implementing 66 Nos. of cluster projects and 347 Nos. of group approach projects under Integrated Handloom Development Scheme from 2007-08 till date covering 33000 weavers directly and 8800 weavers indirectly with a total project cost of Rs. 38.92 crore. In addition, a total of 570 individual weavers at the cost of Rs.1.48 crore have been given benefit under Weavers Credit Cards. Also 51135 weavers under Health Insurance and 17000 weavers under Mahatma Gandhi Bunkar Bima Yojana. So far, outstanding loan of Rs.313.32 lakh has been waived off in respect of 4 Banks and recapitalization of one Apex society for Rs. 33.24 lakh under Revival Package. The Ministry of Textiles also sanctioned Rs.94.00 lakh to set up a Powerloom & Allied Service Centre for promotion and training of weavers in Manipur. The State Govt. had installed three powerlooms including one shuttleless and one sectional warping machine in Imphal. Handicrafts Industry is one of the important traditional Industries in the State having its own unique identity amongst the various crafts of the country. The State Government gives State Awards to outstanding craftspersons, Modernization of Handicrafts, Development of Kouna (water reed) products, Equipment subNCM-OCTOBER 2013 88 sidy to ex-trainees. So far, 188 Nos. of Craftspersons have been awarded since 1979-80. The Ministry of Textiles has been providing pension to the State Awardees @ Rs.1,000/- p.m. after attaining the age of 60 years till death. One Urban Haat is developing. The Ministry of Textiles sanctioned various Central Plan Schemes through the branch offices of DC (Handicrafts), namely, Ambedkar Hastshilp Vikas Yojana, Technological & Marketing Intervention, Product Development Programme for Exports, Integrated Design Development Projects, Rajiv Gandhi Shilpi Swasthya Bima Yojana, Bima Yojana, Shilp Guru Award, etc. Manipur is one of the unique States in the country where four varieties of silk are grown, namely, (i) Tasar, (ii) Mulberry, (iii) Eri and (iv) Muga. Because of this unique advantage of Manipur, Japan Bank of International Co-operation (JBIC) funded the Phase-I Programme of Silk development during 1998-2008. Under this programe, 1700 Hectares was added under Mulberry. So far, Rs.102.06 crore has been incurred out of Rs. 299.90 crore till the end of 2011-12. The cumulative physical achievement of all four verities till the end of 2011-12 was 1641.87 MT for a value of Rs.214.27 crore approx. Manipur's Proposal As a tradition, the Ministry of Finance, Govt. of India usually announced the package for setting up of Mega Handloom Cluster in India. As reported in the Census, 2009-10, i.e. about 60% of the total weavers of the country are inhabited in the North Eastern Region. The handloom sector in Manipur is indeed capable of exponential growth, with proper identification of its needs, a reasonable level of resource input and structural attention. Therefore, it is proposed to introduce the scheme for setting up of Mega Handloom Cluster as a national scheme instead of

Declare Mega Handloom Cluster as a National scheme, says Manipur Minister

The State Government proposed the Ministry of Textiles for implementation of the Manipur Sericulture Project Phase-II at the cost of Rs.291.00 crore over a period of 4 years from 2013-14 for generating a target of new employment to 46933 families with an additional area of 1, 000 hectares. Manipur Minister of Commerce and Industries and Sericulture Govindas Konthoujam attended the State Textiles Ministers conference held at Vigyan Bhawan in New Delhi with Union Minister of Textiles, Dr Kavuru Sambasiva Rao in the chair. In his speech at the meeting, he presented his state's expectations from the MoT. Manipur is a non-powerloom State. Major common activities under the Textile Sector are Handlooms, Garmenting, Handicrafts and Sericulture. Hand weaving forms a part of socio-cultural tradition of Manipur and a large population depends on handloom for livelihood.

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Budget Announcement subject to the minimum of 50000 weavers population of the State concerned as the minimum criteria. The State Government is taking up initiative for implementation of Mega Handicrafts Clusters in Manipur with the financial assistance of the Ministry of Textiles, Govt. of India. The State is also contemplating to set up one more Urban Haat at Bishnupur District. The State Government has proposed the Ministry of Textiles for implementation of the Manipur Sericulture Project Phase-II at the cost of Rs.291.00 crore over a period of 4 years from 2013-14 for generating a target of new employment to 46933 families with an additional area of 1, 000 hectares. Manipur Commerce Industries Director B John Tlangtinkhuma, IAS and Deputy Director of Industries Kaphunchung Lamlee Kamei accompanied the Minister in the Conference.

Union Textiles Ministry Okays Textile Parks for Bellary and Yadgir in Karnataka
Skill development centre for textile workers planned for Gulbarga Gulbarga : The Union Textiles Ministry has agreed to start new textile parks in Yadgir and Bellary and a skill development centre in Gulbarga for building capacity of workers engaged in textile production. This was announced by Union Textiles Minister Kavuru Sambasiva Rao in Gulbarga during his recent visit. He was speaking to reporters after laying the foundation stone for basic infrastructure facilities at the Gulbarga textile park at the Nandur-Kesaratagi Industrial Estate on Shahabad Road. The minister said that in view of the tremendous potential for export of garments and apparels, it had not only become imperative to open more textile parks, but also equip the workers with the necessary skills in tune with the modern needs. Earlier at the function, Railway Minister Mallikarjuna Kharge made a demand for textiles parks at Yadgir and Bellary and a skill development centre in Gulbarga. Rao said that the Gulbarga textile park, coming up on 50 acres of land with an investment of Rs 100 crore initially, has excellent opportunities for exporting garments. When the Gulbarga park starts operations, it should be able to export garments worth Rs 200 crore annually and the capacity can be enhanced further. The products of the park should be competitive and in tune with the changing needs and tastes of the people all over the world, Rao said. He said there was a dire need to develop the districts of the backward Hyderabad-Karnataka region industrially and promised to offer any help and assistance that is required to achieve the goals. Asked whether a fully 100 per cent export oriented textile park could be started, the minister said any textile park can export 90 per cent of its products. If necessary skills are imparted to the workers, the textile products will have greater demand everywhere. He pointed out that Moradabad district in Uttar Pradesh alone exports handicrafts worth Rs 4,000 crore annually as there is a stress on skill development there. Similar success can be achieved by textile parks also, the minister said. Replying to a question, he denied that cotton production had come down in the country. Last year, India produced 350 lakh bales of cotton and this year, the production is expected to reach 370 lakh bales. The domestic requirement of cotton is 290 lakh bales and the remaining is being exported. Karnataka produces over 20% of the national garment production and 45% of the national raw silk production. Its silk exports constitute 24% of the total value of silk goods exported from India. Approximately 386,000 manufacturing units are engaged at the organized and unorganized level. The state has a workforce of approximately 55,000 weaver families with handlooms and over one million powerlooms. The state has over 100 Skill Development Centers and 240 private training centers. A 48-acre Integrated Textile Park at Dodaballapur housES 85 textile units and over 700 powerlooms. NCM-OCTOBER 2013 89

Nagaland seeks a centralized yarn depot at Dimapur

Nagaland's Minister for Commerce and Industries S. Pangnyu Phom, who attended the Conference of State Ministers of Textiles in New Delhi, spoke about the important needs of the state in the sector of handloom which was traditionally handwoven and natural fabric items. He said practice by the state needed to be improved from tradition to modern technology for large scale production. He said that the yarn supply scheme urgently need a centralized depot at Dimapur for better transportation and distribution to the weavers in the state. He also urged the union ministry to setup an Indian Institute of Handloom Technology (IIHT) in Nagaland at the earliest.

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SRTEPC, in association with the Mewar Chamber of Commerce & Industry, organise Seminar On Exports in Bhilwara
The The Synthetic & Rayon Textiles Export Promotion Council (SRTEPC) Council organized a Seminar on ManMade Fibre Textile Industry & Exports in Bhilwara, Rajasthan on 7th September, 2013 with the support of Mewar Chamber of Commerce & Industry (MCCI). The Seminar was held at the LNJ Hall of the Mewar Chamber of Commerce & Industry, and was attended by a large number of manufacturers, exporters and media persons. Shri Rakesh Mehra, Chairman of SRTEPC, chaired the Seminar. On this occasion, Shri Sujit Gulati, Joint Secretary, Ministry of Textiles, Govt. of India was the Chief Guest, while Shri S.S. Das, Director, Ministry of Textiles, was the Guest of Honour. The Seminar started by lighting a lamp and with floral welcome. The objective of the Seminar was to create an awareness amongst the member-exporters of the region about the latest trends and developments in various fields relating to exports of Man-Made Fibre Textiles. Following presentations were made on topical issues such as, Trends and Changing Scenario in International Marketing of MMF Textiles, Future of ManMade Fibre Textile Exports Potential & challenges in Bhilwara, Scope for production & Exports of Technical Textiles, and Role of SRTEPC in promoting exports. Shri Rakesh Mehra in his welcome address said, Bhilwara is a major Centre for textile production in India, especially MMF textiles. Bhilwara is also contributing to exports. However, there is huge untapped potential, and I do hope that this Seminar will be in-

Chief Guest Shri Sujit Gulati, Joint Secretary, MoT (third from left), speaking at the seminar. Others on the dais are (from the left to right) Shri S.N. Modani, Managing Director of Sangam India Ltd., Shri S.S. Das, Director, MoT, Shri Vinod K. Ladia, Immediate Past Chairman of SRTEPC, Shri Rakesh Mehra & Shri S.P. Nathany, Hon. Secretary General of MCCI. strumental in bringing more companies to the export field, which can contribute to the national export endeavor. In his presentation on Role of SRTEPC in Promoting Exports, Shri Mehra briefed the participants about the Councils various services to Indian companies of textiles for helping them develop their export-base of MMF textiles. He also informed them about the promotional programmes, the Council is organizing abroad, and Market Development Assistance (MDA) reimbursements, which are provided to eligible members of the Council to help them meet a part of their costs for participation in exhibitions abroad. SRTEPC Chairman, therefore, requested the participants to become members of the Council and contribute to the National Export Endeavor. Shri Sujit Gulati, Joint Secretary, Ministry of Textiles in his inaugural address said that in Bhilwara, since there are facilities for spinning, weaving & processing, companies need to move ahead for garmenting, as there is huge demand and value addition for apparel products for their exports. Besides, as garments dont require water at all, and also land is less required only input which is to be managed is labourers. NCM-OCTOBER 2013 90

Shri Rakesh Mehra Chairman, SRTEPC

Shri Sujit Gulati Joint Secretary, Ministry of Textiles He also informed that India is lagging behind in exports of readymade garments from countries like Bangladesh, Sri Lanka and Vietnam. Though we have all the necessary resources for garmenting, no attention is given on value-addition. Scope for exports of Technical Textiles in India

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Shri S.S. Das, Director, Ministry of Textiles Shri S.S. Das, Director of Textiles in his Presentation on Technical Textiles informed the participants that the size of the global market of technical textiles was Rs. 6.99 lakh crores for the year 2010, and it is expected to reach to Rs. 7.48 lakh crores by the year 2012-13 with an annual growth rate of 3.5%. He added that though India is the second largest textile economy after China, its contribution in global technical textile industry is only 9% to the total consumption. Considering this huge unrealized potential, Shri Das requested the participants to develop their textile-base in this fastest growing segment of technical textiles in India. Shri Vinod K. Ladia, immediate Past Chairman of SRTEPC, in his PowerPoint Presentation on Trends and changing Scenario in International Marketing of MMF Textiles showcased to the participants about the widening scope for exports of home textiles, technical textiles and apparel products. He, therefore, advised the participants to move into these areas -- enhancing the value of their exporttrade exponentially. Comparing India with China, Shri Ladia said that though China too is a big producer & exporter of cotton like India, it also gives huge attention to promote exports of Man-Made textiles. However

Views of the Audience at the Seminar on ManMade Fibre Textile Industry & Exports in Bhilwara NCM-OCTOBER 2013 91

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Participants in the Seminar speaking during the Question-Answer session VAT on textile products and carpets, druggets, woollens, durries, cotton floor durries and rugs from 12.5 per cent to 5 per cent. This would benefit the traders to the tune of about Rs 150 crore. Addressing representatives of various trade unions Chandigarh, Hooda assured traders that the government would favourably consider their demand for further relief in filling VAT-D 3 Form. He said the government had already increased the limit for this form from Rs 10,000 to Rs 25,000 . The textile products on which VAT has been reduced included pillow covers sold with bedsheets, comforters, duvet covers, cushion covers, bolster covers and ready to use curtains.

Shri Vinod K. Ladia, immediate past chairman, SRTEPC. in India, Man-Made Fibre sector is yet to get adequate focus of our Govt. He added that MMF textiles is the highest taxed in the textile value chain. Shri Ladia said that there is urgent need of fibre neutral policy and attention of the Government for the development of this highly potential segment. In his presentation on Future of Man-Made Fibre Textile Exports Potential & Challenges in Bhilwara, Shri S.N. Modani, Managing Director of Sangam (India) Ltd. informed the par ticipants that Bhilwara, also known as Textile City of India, is the leading manufacturer/ exporter of world-class suitings & yarn. He said that for the development of Textile Industry in Bhilwara, Government should create an Integrated

Shri S.N. Modani, Managing Director, M/s Sangam India Ltd. Textile Development Centre with a single window clearance facility. Shri Modani also emphasized the need to have training, and electric-supply centers for the faster development of export-base in Bhilwara. The Presentations during the Seminar were followed by questions raised by the members of the audience, which were answered by the panel of speakers. The Seminar ended with a vote of thanks by Shri Srijib Roy, Joint Director of SRTEPC.

Small textile units in Haryana oppose imposition of VAT

These units, which make rugs, cotton and woollen durries, druggets and carpets, have already seen their margins squeezed by the escalating cost of power, labour and raw material Micro, small and medium-scale textile units in Panipat, the textile cluster of Haryana, are up in arms over the imposition of Value Added Tax. These units, which make rugs, cotton and woollen durries, druggets and carpets, have already seen their margins squeezed by the escalating cost of power, labour and raw material.

Haryana slashes VAT on textile products

Chandigarh : Chief Minister Bhupinder Singh Hooda announced reduction in NCM-OCTOBER 2013 92

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They want a roll-back of the tax, which they fear may lead to the closure of many small enterprises, and point out that units making similar products in Gujarat and Rajasthan are tax-exempt. Birender Rawal, vice president of the Federation of Small Scale Industries of Panipat, said, "There has been no tax on small textile firms since the inception of the Panipat cluster. About two months back there were reports of a 12.5 per cent VAT on us, for which we did not get a notification. We met Haryana Chief Minister Bhupinder Singh Hooda and asked for a complete roll-back, and he asked for time to understand the matter. Now it has been reduced to five per cent. But the question is, when there was no tax, where is the scope to reduce it?" He added that small textile companies, having investment of up to Rs 1 crore in plant and machinery, are exempt from all taxes. About 80 per cent of units in Panipat are in the cottage, micro, small and medium-scale category. So, all associations in Panipat have united to oppose this decision. According to the excise and taxation department of Haryana the Union government has exempted units that are liable for Additional Excise Duty (AED) from paying local sales tax. In 2011, units producing sugar, to-

bacco and textiles, among other goods, were exempted from AED, so they become liable for local sales tax and VAT has also been imposed. VAT

has already been imposed on tobacco, and sugar is in the process of being brought into the ambit. The exemption from VAT under conditional entries

Handmade Pochampally Ikat : Weavers struggling for success

Weavers in and around Pochampally village got together in 2007 to keep their traditional weave, handmade Pochampally Ikat, alive and safe. A large-scale Pochampally handloom unit at Kanumukkala, about 60 kilometres from Hyderabad a location central to the 22 weaving villages, was jointly set up by 33 weavers with the help of the AP government. Their venture now employs 380 people, all from the weaving community. Most of them, expert weavers, take on other roles as well, from marketing to selling. None of them studied beyond Class X. A Pochampally Ikat exhibition was held in Bangalore recently. According to Anjaiah K, one of the entrepreneurs, We set up 500 looms but started working with about 350. The government loan covered the building and infrastructure costs, but the working capital had to come from us, Anjaiah recalls. The going is still tough after six years. We can only make about 7 sarees with one warp (In weaving cloth, the warp is the set of lengthwise yarns that are held in tension on a loom). On average, it takes a weaver about four days to make one saree. Before that, three people work with the yarn, design and colours for about 20 days to get it ready to be woven. Pochampally Ikat is the turf of weavers from around 22 villages, including Pochampally, in the Telangana region. The textile technique involves making patterns by tying and dyeing the yarn prior to weaving. This unique process, quite labour intensive, gives their Ikat fabrics a distinct identity. The popularity of the designs has had large-scale manufactures copying them in the mechanised looms and mass producing them at much lower prices.

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(textiles fall under this category of the VAT Act) is liable for Classified Tax of 12.5 per cent. "The manufacture of bare textiles is tax-free but the manufacture of value added or made-ups is liable for tax and the government has now kept it at a lower rate of VAT (five to six per cent)," the official said. Ram Niwas Jindal, a senior member of the Blankets Association of Panipat, said that most entrepreneurs in Panipat cater to the local market. Seeking a tax account number, hiring an advocate and filing a return is both cumbersome and unaffordable. "We switched from handloom to power looms due to labour shortage. But our scale of operation is low, as we do not have resources and market linkages to increase scale. Handlooms are tax exempt. We graduated from handlooms to powerlooms but our inherent strengths are too small to add capacities. Such decisions of government would lead to closure of several units," he added.

Textile workers of Ludhiana textile units staging protest ing they had already submitted their charter of demands to the employers concerned. Further, he said an agreement has already arrived between the workers and the 38 textile units and the latter have agreed to increase 15-20 per cent rise in wages/piece rate and the workers of remaining textile units are forced to launch an agitation. He revealed that strike was started in 32 textile units on October 4 and today the strike was entered into a total 36 units. He regretted that the Department of Labour was completely doing favour to the owners of the textile units.

Workers of Ludhiana textile units seek 30 per cent increase in wages Surat Textile Business Ludhiana : The workers of local tex- badly hit by Telangana tile units went on strike demanding among other things 30 per cent in- protests
crease in wages/piece rate, bonus and implementation complete of Labour Laws. Protest was staged under the banner of Textile Hosiery Kaamgaar Union, Punjab. They held a protest dharna at the PUDA Grounds in Ludhiana. Speaking on the occasion, the Union president Rajwinder said inflation is on rise and profits of the industries are also increasing but wages of the workers are not being increased. He regretted that there exists no Labour Laws in the local textile units. He said the workers want justice with regard to their long-pending demands, addThe industry is losing Rs 20 crore a day, as consignments stalled just before Diwali festivities Surat industries supply synthetic fabric including dress materials, saris and home textiles to the customers in Andhra Pradesh as well as some other parts of South India. The impact of the ongoing turmoil over Telangana has spilled over to Gujarat, as the textile industry in Surat is making heavy losses every day following the violent protests in coastal Andhra Pradesh. It is estimated that with every passNCM-OCTOBER 2013 94

Arun Jariwala

Ajoy Bhattacharya Andhra Pradesh accounts for 20 per cent of Surat's total annual business of Rs 40,000 cr. Surats textile industry is losing Rs 2025 crore each day.

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ing day of strikes and violent protests in the region, Surats textile industry is losing Rs 20-25 crore each day. Known as a hub for synthetic textiles,

the Surat-based industry gets 20 per cent of its total annual business of Rs 40,000 crore from Andhra Pradesh alone. NCM-OCTOBER 2013 95

Textile business has been affected for over a month, thereby causing a loss to the tune of Rs 600 crore just before the beginning of festivities.

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According to Arun Jariwala - an industry veteran and an industrialist himself in Surat - since the festive season is approaching, it is a peak time for business. Trade with Andhra Pradesh is almost stalled. The disturbance is also affecting consignments destined for Tamil Nadu, as Vijayawada is the major centre for warehousing and transit of goods. Further, the textile industry has also expressed uncertainty over the new taxes and laws that the new state will implement. In the long run, policies of the newly created state will play a crucial role. Every state wants to develop its textile industry. And Telangana, being the heart of the cotton producing region in Andhra Pradesh, has an advantage to develop its own textile industry. This might pose a challenge for suppliers in Gujarat, said Ajoy Bhattacharya, past president, South Gujarat Chamber of Commerce and Industry. According to Bhattacharya, the textiles industry being labour intensive would be politically more sensitive than other sectors.Textile traders are cautious about making fresh business moves as uncertainty continues to linger over the prospects of trade with Telangana and Seemandhra. They are waiting for the violence to end and return of the normalcy.
concern and has received the total consideration of Rs. 209.15 crores. Clariant and Archroma have entered into business continuation agreement whereby Clariant will run the business for a transitor y period in Trust for Archroma.

Earlier, the Board of Directors of Clariant at its meeting held Sept. 19, 2013, had considered and approved the sale of the undertaking comprising of business of textile chemicals, paper specialties and emulsions along with employees, assets, liabilities and including all licenses, land leases, permits, consents and approvals thereto as a going concern by way of a slump sale on an "as is where is basis" to Archroma India Pvt. Ltd., a company incorporated in India under the Companies Act, 1956, being owned by S.K. Spice Sarl, an affiliate of S.K. Capital Partners, a US based private Investment Firm, for a total consideration of Rs. 209.15 cr and on the terms and conditions stated in the Business Transfer Agreement, as on Sept. 30, 2013. Clariant's divestment of the above business includes a Textile Chemical plant situated at Roha. The Roha site has multi-business, multi-product production facilities and the textile chemical plant occupies a minor proportion in the overall site. We are excited to continue crystallizing our businesses and are putting a strong emphasis on advancing our stakeholders interests, said Mr. R.A. Shah, Chairman of the Board of Directors for Clariant Chemicals (India) Limited. The Board is committed to delivering the performance that our stakeholders expect of us, and we agree that this move will best put Clariant in India on the path for continued growth and development. Repositioning the companys portfolio is an essential part of Clariants 2015 profitable growth strategy. This move has been designed to focus on our key businesses to ensure that Clariant in India provides maximum NCM-OCTOBER 2013 96

Dr. Deepak Parikh value to all our stakeholders, said Dr. Deepak Parikh, Vice-Chairman & Managing Director of Clariant Chemicals (India) Limited, Our vision is to further sharpen Clariants competitive edge as we concentrate on growing our core businesses. We will continue leveraging our global expertise and innovation capabilities in India to strengthen and increase profitability. Clariant to relocate the Masterbatches Plant from Kolshet to Bhiwandi The Board has also approved relocation of the Masterbatches Plant of the Company from Kolshet, Thane to Renaissance Industrial & Warehousing Complex situate at Village Vashere, Taluka Bhiwandi, District Thane, Maharashtra. This move will help Clariant further improve its market presence and strengthen its position in India. The new plant will be operationally effective from December 2013, stated Dr. Parikh. This move is to primarily expand production capacities and build a fully refurbished and modern production unit under one roof. The new facility will enable Clariant to introduce latest technologies & systems to its customers at an even quicker pace than before and generate value with cutting-edge innovations and highly customised local solutions through global best practices, said Mr. Sandeep Puri, Head, Masterbatches business in India.

Clariant Chemicals (India) Ltd sells the business of textile chemicals, paper specialties and emulsions to Archroma India Pvt. Ltd.
Clariant Chemicals (India) Ltd has informed the Bombay Stock Exchange (BSE) that pursuant to approval by the Board at its meeting held on September 19, 2013 the Company has sold/ transferred the business of textile chemicals, paper specialties and emulsions to Archroma India Pvt. Ltd. as on September 30, 2013 as a going

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Quality has to be caused, not controlled.

- Philip Crosby
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'Archroma' to come to life : Former textile, paper and emulsions businesses of Clariant were acquired today by SK Capital Partners
Archroma begins new era in delivering color and specialty chemicals to textile, paper, adhesives, coatings and construction industries Reinach : Archroma is delighted to announce its official launch today as a newly formed global color and specialty chemicals company that comprises the former Textile Specialties, Paper Solutions and Emulsion Products businesses of Clariant. To be combined into a single entity at close, Archroma will continue to deliver specialized performance and color solutions to the textile, paper, adhesives, coatings and construction industries. The three businesses were acquired today by SK Capital Partners, a U.S. based private investment firm with a disciplined focus on the specialty materials, chemicals and healthcare sectors. To be led by CEO Alexander Wessels, the newly recruited senior leadership team will seek to generate a renewed sense of purpose and vision, and will work closely with the current heads of the three businesses acquired from Clariant, whose unique understanding of their markets and customers has advanced the strategic positioning of Archroma. Were open for business with a new name and a financially strong and knowledgeable parent who believes in our technology, brand and leading market positions, says new CEO Alexander Wessels. Im proud to join a company with a 120-year long history of providing a portfolio of worldclass products and driven by a team of highly talented people who bring fresh thinking and ideas to an industry hungry for innovation. The transaction closing comes after a thorough preparation to ensure a seamless transition of the businesses from Clariant to new ownership. In addition, we believe that realigning the three businesses into a single integrated, market-focused and dynamic company will benefit both our employees and our customers. Wessels added, With SK Capital, we strengthen our business and further improve our offering to our customers. We have all the right cards in our

Alexander Wessels Chief Executive Officer (CEO)

Alexander Xander Wessels joins Archroma with almost 25 years of chemical, pharmaceutical and process industry experience. He has spent the past seven years at Royal DSM NV, and in his most recent position was President & CEO of DSM Pharmaceutical Products, a global pharmaceutical ingredients and contract manufacturing organization. Previously, he held various management and executive positions at Unilever, Quest International, ICI, and as Executive Committee Member of Campina. Mr Wessels holds an MSc in Molecular Sciences from Wageningen University in the Netherlands, and both an MSM and MBA from the Krannert Business School of Purdue University in the US and Tilburg University, in the Netherlands.

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MEGHDOOT SILK MILLS PVT. LTD. TEXTILE PROCESSORS, EXPORTERS & IMPORTERS
Bleaching, Printing, Dyeing & Finishing of Polyester, Cotton, Knits & Blended Fabrics. Width up to 58 302/1, G.I.D.C. Phase II, Vinzol Road, Vatwa, Ahmedabad- 382 445 INDIA. Phone : +91 -79-25830271/25896372 Fax : +91-79-25830271 Mobile : +919825006354 E-mail :bosmiap@yahoo.com hand. We know who we are and what we offer to our customers innovation, performance, technical expertise, quality, reliability, a global footprint and a commitment to sustainability. Archroma will be headquartered in Switzerland along with the management team of Archromas Paper Solutions Business. The Textile Specialties Business will be managed from Singapore and the Emulsion Products Busi-

ness from Brazil. The company has a new name and new ownership, yet one thing that has not changed is the passion and commitment to excellence.

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Customer and market focus Archroma is favorably positioned in multi-billion-dollar end markets, from fibers and fabrics to paper and packaging to coatings, adhesives and construction; and will continue to develop color and performance materials to serve its customers ever changing needs. Textile Specialties: From fiber to finish, Archromas Textile Specialties Business plays a key role throughout the entire textile supply chain, with special chemicals for pre-treatment, dyeing, printing and finishing of textiles. Product packages enhance the properties of apparel and other textiles in applications as diverse as high fashion, home textiles and special technical textiles. Paper Solutions: Archromas Paper Solutions Business provides expertise in the management of whiteness, coloration, special coatings and strength for all kind of papers. By combining our focused product range with the application services of our paper experts around the globe, we enhance both the optical and functional properties of paper. Emulsion Products: From paints, adhesives and construction to the textile, leather and paper industries, Archromas Emulsion Products Business provides solutions for a wide range of applications. Customers have been witness to the outstanding success of Archromas Mowilith emulsions since its first patent was obtained in 1912. Archroma offers its global customers a reliable and long term commitment to developing new product solutions, application development, process technologies and services with world class quality and technical support. Archroma, a new name with a trusted heritage Pronounced Ahr-kroh-mah, the name of the company is reminiscent of the

BTRA's Atmospheric Pressure Plasma Treating Machine available for industry trials
BTRA has procured and commissioned an Atmospheric Pressure Plasma Treating Machine (DBD) for textiles and polymers (PilotPlant Model). Its salient features are as follows. Materials such as fabric, nonwovens, polymer films, linings are treated in continuous length. Roll to roll treatment is possible. Up to 50 cm width of materials is treated. Some of the carrier gases used are Helium, Oxygen, Argon and Nitrogen. Treatment conditions are being optimised as per clients needs.

The above facilities are available for carrying out R & D and specific trials for the industry. For more details, please contact : The Director, The Bombay Textile Research Association, Lal Bahadur Shastri Marg, Ghatkopar (W), MUMBAI 400 086 Tel : 022-2500 3651 Fax: 022-2500 0459 E-mail: btra@vsnl.com words arch and chroma. It represents the commitment from 3,000 employees, 25 production sites, 35 countries and 3 businesses to come together in a new company to better meet customer needs. It also confirms the companys position as a global leader in color and specialty chemicals with strong market insights and a rich heritage of materials excellence and expertise. Archroma was formed in September 2013 from the textile, paper and emulsions businesses of Clariant. Clariant itself was formed in 1995 as a spin off from Sandoz, a chemical company which was established in Basel in 1886. In 1997, Clariant acquired the speciality chemicals business of Hoechst, a German chemical company. Through this direct lineage, Archroma have amassed knowledge and experience of chemistry and industry spanning more than 120 years. Archroma is headquartered in Reinach near Basel, Switzerland, and operates with approximately 3000 employees over 35 countries. NCM-OCTOBER 2013 100

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www.newclothmarketonline.com

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Authorised Dealers of
Zydex Industries
Polymer Based Speciality Chemicals for Sizing, Pre-treatment, Dyeing, Printing & Finishing

Clariant Chemicals (India) Ltd.

Dyes & Textile Chemicals

Amritlal Chemaux Pvt. Ltd.

Emulsifiers ST-82 & HPD for Pigment Emulsions

20 Microns Limited
Powder for Khadi

A-2 & 3, Hare Krishna Estate, B/h. Asopalav Hotel, Narol-Sarkhej Road, Narol, Ahmedabad-382 405. Ph.: (O) 079-2533 2230 (R) 2673 2219 (M) 98250 15886 Email : saurabh_enterprise@yahoo.co.in

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