perfect sourcing

3 SEPTEMBER 2012 n perfectsourcing

40. FAIR & EVENTS

17. FAcE To FAcE

10. coVER SToRy

06 EDITORIAL

08 OPINION LIVE

19 BURNING ISSUE Implementation of FDI Attracts Mixed Response

from Industry

20 HOT DEBATE Is Bangladesh Snatching India’s Glory in

Apparel Trade ?

22 FASHION MATRIX – TRENDS

4 perfectsourcing n SEPTEMBER 2012

inside...

28 APPAREL & TEXTILE NEWS30 INTERNATIONAL NEWS32 RETAIL NEWS33 INDUSTRY ON THE MOVE

TECHNOLOGY UPDATE34 Imparting Chemical and Natural Antimicrobial

Finish on 50:50 Nyco Blend36 Alok Industries Limited Installs India’s First

Polyvinyl Alcohol Recovery Plant

38 LOGISTIC NEWS

FAIR & EVENTS37 Yarnex and TexIndia Show at Tirupur Garners

Positive Response44 Apparel Exporters and Manufacturers Association

Celebrates 30 Years of Glory46 AEPC Taps New Ways to Tackle Tough Times

HARI KAPOOR MD,

Allied Export Industries

Galleria Intima –the B2B FAIR for

SEGMENT SEES A PoSITIVE DEBUT EDITIoN

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Take Action Now!!

Many years ago, I remember reading some interesting quotations and one which caught my eyes at a rather young age was ‘Take Action Now’. This maxim inspired me in the journey of life as whenever a tough situation came up, there were many solutions and alternatives, but the key word was to take action immediately and solve the problem. I

firmly believe this is what the apparel and textile industry also requires at this moment. We have been talking about a lot of problems and issues like unavailability of skilled labour, infrastructure, productivity, emerging competition from neighbouring countries and more. However, the solution lies in taking the appropriate steps at the personal level to get out of this vicious circle.

In this issue Team Perfect Sourcing has tried to chalk out some steps and methods that can help players at all levels to remain in the competition. In our face to face section we talk to one of the oldest players in the game, Hari Kapoor, CMD, Allied Export Industry who shared some very useful tips on how the industry can remain competitive against all odds. His company that has been in the trade since 1973 has adopted some very interesting schemes to stay on top. For instance, he says India should focus on its inherent strengths like value added garments. Moreover, if India is not good in winter clothing then it should start looking for countries that have long summers.

This is why we have introduced a new section called ‘Hot Debate’ wherein we have invited views and suggestion of eminent players from the industry on the strategies that can be adopted to fight and tackle increasing competition from Bangladesh. The most interesting part of this section is that it answers queries of exporters and includes Government’s response on the issue too.

The fair and events section this time covers India’s first b2b show on the intimate apparel segment – Galleria Intima. It is a known fact that this segment has seen exponential growth over the last few years. The show was small in size but had attracted well known brands in the intimate apparel segment. Overall, it was regarded as a good combined attempt by the organizers and the Intimate Apparel Association of India to spread awareness that this is the happening segment in apparel and that price tags no longer deter cash-rich customers from buying what was hitherto considered an expensive niche for an exclusive clientele. The stepping stone has been laid firmly and it is time that more players get into this highly competitive yet lucrative segment. As I stated earlier, take action now.

I hope that you will enjoy reading this issue and will share your ideas and views on how our industry can get out of this difficult situation.

I look forward to your feedback, as always.

R ef l e c t i o n s

DEEPTI MALHOTRAEditor

OM SAI RAMperfectsourcing

owner & publisherGAGAN MARWAH

editorDEEPTI MALHOTRA

correspondentPRIYANKA BANERJEE

marketing teamGOuTAM MANDALVIKHYAT ATuL

creative design & prod.DESIGNX MEDIA

photographerSHIRAZ CHAND

circulation managerPALAK

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perfectsourcing n SEPTEMBER 20126

TEAM

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The biggest challenge faced by the industry today is the availability of skilled workforce. Skilled labour at all levels is very hard to come by, be it cutting,

production, finishing or any other area of operation. However, the major bottleneck is finishing. Because of lack of skilled thread cutters, which forms a very meager percentage of the total workforce, many orders are rejected as there are defects in the garments. The company has always plan to expand, however, they cannot be fulfilled on a daily basis because of the shortage of skilled labour. To overcome that we need to have a weekly skill exercise, after imparting training, in which we can decide which person should be kept and which one should be sent home.

RAJIV PANDE, VP, Maral Overseas, Delhi

In my opinion it is the lack of having professional workforce in the industry. Not only labour, even the staff is not properly trained. The merchandisers

available today have a very casual approach towards the job and are not professional. Labour is also a big problem as there is a dearth of skilled labour in the industry today, which hampers production a lot as the set targets of the day cannot be achieved.

CHARuLATA MOORJANI, Akash Impex

The main challenge is low productivity. We need the Government support to increase the productivity in terms of introducing more flexibility laws in the labour system. The ILO has a set time for the work hours of the labour however, we are not allowed to even conform to that. As skill development of labour is already being persuaded by association and exporters moreover, with the Government also giving support on this it is not a major issue. The only are that requires improvisation is looking out new ways for increasing the productivity at all levels.

LALIT GuLATI, Chairman, Modelama Exports, Delhi

The lack of proper infrastructure is the biggest challenge today and can only be tackled by the Government support. The big export houses do not need

as much support as the small exporters do. The Government needs to upgrade the small exporters to high level by improving the infrastructure so that they can also do better business. Besides that shortage of skilled labour is a big problem. The industry needs more than 20 lakh workers, however, they are not available. Right now the market is slow so we are managing, however once the market comes up shortage of labour will turn out to be a big problem.

LALIT THuKRAL, Maharana of India, Noida

The biggest problem faced by the industry is the issue of compliance. There are so many compliances that if we fail on one account, the buyer withdraws

the business. For example, the labour law allows only eight hours of work, if we take extra work and the buyer gets to know about this, they will cancel the order. Another one is poor management by the line supervisor as along with the workers he is also not trained or literate. So overall it is problem of lack of training at all levels which is burdening the garment industry today.

SATISH GuPTA, Moda Cocktail, Delhi

Lack of infrastructure and technology is the biggest challenge today. The government needs to support the exporters in their endeavor to do good

business. The world is seeing a lot of technological advancements but the Indian garment industry is not up to the mark. Apart from that the entire workforce needs to be professional. It’s not that only the labours that need to be skilled and professional but the training needs to start from the management level. The garment industry is ruled by the father-son duo but that needs to be changed and more professional people should be involved, only then can the garment industry move to new benchmarks

MOHD. GHIASE, FFI, Bangalore

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What is the biggest challenge in Apparel Production today and why?

>> Management Myopia

>> Workforce skill level

>> Conventional production methods

>> Lack of training at all levels

>> Poor management by line supervisor

>> Or any Other


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DIA

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2SA

C O V E R S T O R Y

Nomination, a procedure that was initiated by buyers to achieve better control over their supply chain, is now a very common practice followed in the apparel and textile industry and has many aspects to it. Apparently, this process was introduced when Liz Claiborne initially nominated their fabric suppliers in Hong Kong. Soon thereafter, other buying offices joined the bandwagon and started following the practice to consolidate sourcing. These days a buyer nominates suppliers mainly for products like accessories, fabrics, packaging material and logistics to gain better control over their supply chain, get consistent quality and on time deliveries. However, with time, the process of nomination has increasingly become an indirect method of making a fast buck for many. Nomination has a darker side too… PERFECT SOURCING Reports


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Not only people from sourcing

side but manufacturing side

also agree to the fact that

nomination is a good practice in

terms of meeting deadline of buyers

and giving committed quality.

The objectives of nomination were very clear in the beginning. The most important factor was the standardization of the product as,

by nominating suppliers, buyers intended to get products which had consistent quality and had no defects or flaws. According to DN Sood, Director, Associated Indian Exports (AIE), the process of nomination was introduced by buyers who had more than 300 stores all across the world and wanted their stores to look classy and appealing. “If I own a chain of stores, I would always want that all my stores appeal to customers and have the same look and content. However, if the merchandise at any of the stores does not match the desired quality, it would definitely tarnish the brand image,” explained Sood on why and how nomination process came into existence. He mentioned that buyers felt that it was important to have nominated sources for some products and services like trims, accessories, labels, packaging material and, to an extent, logistics also as the supplier base was huge, volumes were high and managing the composite package was difficult.

The second important reason for nomination was on time deliveries as buyers were getting delayed orders and most of the times agents/manufacturers blamed suppliers of trims, accessories or fabrics for the delays. “The aim of nomination was basically saving of time as the selected supplier was not required to be checked and rechecked for quality and just had to fulfill the demand,” said Rajeev Tyagi, Sr. Vice President Operations at Arielle Sourcing, a buying agency to serve sourcing needs of buyers from across the globe in the field of garments, home textiles and hard goods. He stated that nomination

helped in reducing turnaround time resulting in faster execution of orders. “The biggest advantage of nomination was that it helped in achieving consistent products in less time and saved money and resources as well,” revealed Rajeev.

“We have nominated suppliers for trims and accessories to ensure quick deliveries and to keep the cost and quality consistent throughout our factories. It becomes most convenient for everyone to contact one trim source for managing hundreds of types of different main labels, wash care labels, Kimble tags, etc.,” stated Dhiraj Kapoor, CEO, International Sourcing and Quality Assurance (ISQAA), a sourcing and supply chain management organization with a huge base of quality factories/suppliers from the Indian sub-continent.

Sourcing side apart, the manufacturing side also agreed that nomination is a good practice in terms of meeting deadline of buyers and giving committed quality. “The nominated supplier has to be very cautious in terms of deadlines, quality and prices because, if they fail to do so, the nomination will be lost. Nomination is a very useful practice for manufacturers also, as it takes care of 80 percent of the task,” said Siddharth Chaudhary, Director, Kautilya Industries, a company that manufactures knits garments and exports to countries like the US and UK.

Nomination also eliminated the process of getting approvals for quality at every point which reduced the overall cost of logistics, as couriers had to be sent every time for getting approvals on quality. “Nomination has helped buyers also in getting cost competitive suppliers as seeing consistent business coming their way, suppliers quote the best prices,” said Sood. For instance, from the logistics aspect, shipping /air cargo companies

pitch to get full year contracts from the buyers so as to avail a commitment of consistent and high volume business throughout the year and thus they do not mind giving a discounted price which ultimately increases profitability of buyer sourcing at the other end.

“Nominations are of great help to manufacturers as it saves time and money by eliminating the need to search the market for the right product; moreover, it reduces responsibility on our shoulder,” reasoned Avatar Singh Bansal, Senior Merchandiser, Kabir Exports. “The practice helps us as well because if anything goes wrong we don’t have to take the full responsibility. For example, if buttons ordered are not delivered in time, we can inform the buyer that the person liable has not sent it on time and as a result we need an extension on the shipment date,” said Himani Joshi, Senior Merchandiser, DR Clothing.

Most of the players Team Perfect Sourcing interacted with agreed that nomination plays a pivotal role in reducing lead times, increasing cost competitiveness, getting consistent quality and on-time delivery. Manufacturers, buyers/ buying agents and suppliers may enjoy the benefits of nomination, however, like the other side of every coin, the nomination process also has another side and there are certain factors which make nomination a complicated world.

C O V E R S T O R Y


Nomination should be honest and not forced. I personally feel that there should be no fabric nomination as it encourages corruption and also restricts manufacturers from sourcing the best merchandise and innovation required for making garments – DN Sood, Director, AIE

If we talk about costs, nomination definitely increases the overall cost of the garment as the prices of nominated suppliers are a bit higher. The buyer should kept in the loop and should be aware of any additional cost so that it does not hamper the order and the supply chain remains smooth. Thus, it is important to always keep the buyer informed about every aspect so that the supplier is always cautious and cannot take things casually. – Siddharth Chaudhary, Director, Kautilya Industries

It is important to check that nominated supplier is not trying to take the advantage of nominations by introducing policies for factories like advance payments, delivery restrictions and also higher prices etc. Each buying agent, factory and label manufacturer should be very clear on the nomination benefits in improving efficiency and consistency of the quality. Moreover, buying house should send Nomination Terms & Condition" letter to all the factories so that all the parties on the same page. – Dhiraj Kapoor, CEO at ISQAA - International Sourcing and Quality Assurance

Nomination is a very good process to gain control over quality and lead times; however, it is important that people managing it have better control and visibility at all levels so that unethical practices are curbed. – Rajeev Tyagi, Sr. V-P Operations at Arielle Sourcing.

Nomination cannot be done by only India office without the will of buyer so manufacturers can build confidence and relation with the buyer and assure them of the desired quality. It is essential that manufacturers strengthen their supply chain and convince buyer about better quality, price and deliveries as compared to the nominated one. These are tough times and customers are highly prices sensitive so if they can get better deals why would they not accept it. – Manish Bharti, VP, LF FASHION at Li and Fung (India) Pvt Ltd

Team

talked to players from all segments on how nomination

can be streamlined into an ethical practice and some

of the suggestions are appended below:


C O V E R S T O R Y

Quality control is necessary even if you have the products sourced from nominated supplier as it keeps your brand image high and keeps your score high in the buyers eyes. – CK Mitra, Head- Textile Division, Something Else

Nomination is a fantastic system, but loopholes within the system and attracts corruption also. – Sharmila Katre, Professor, B&T Dept., Pearl Academy

The buyers cannot be made aware of every event on the sourcing side, so the best way to survive in the market is to come up with innovative products and offer desired quality at the committed time. – Bashi MP Singh, H.P. Singh Agencies Pvt Ltd

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Nomination has a Dark Side TOO……………..

Nomination has been present in the industry for a long time and everybody is aware of it. Over the last few years, especially when quotas were removed, sourcing from India multiplied and this gave birth to many new suppliers’ for trims, accessories, packaging, fabric, etc. However, when the market situation started getting adversely affected due to worldwide recession, garment and textile sourcing also diminished. As a result, suppliers became more aggressive and even greedy to gain business and nomination was an easy route. In fact, nomination was the only way through which they could get consistent business in tough times.

While on the one hand, the nominated or the chosen supplier enjoys the benefits of getting regular business, on the other it invites many unethical business practices and complications which ultimately mar the brand image of the country. On many occasions, buying agents in India used this practice to make big bucks from suppliers and get continuous business. “Nomination leads to corruption also, as everybody want consistent business without much effort,” says CK Mitra, Head- Textile Division, Something Else, another buying house dealing in home textiles and garments.


C O V E R S T O R Y

Advntages of nomination• Consistentquality• Ontimedeliveries• Shortdelivery

schedules and faster execution of orders

• Timesaving• Brandimageofbuyeris

maintained• Reducescostinvolved

in getting apprvals for qualityeverytime

• Manufacturerremiansfocused and does not have to worry aboutsourcingtrims,accessories,fabricsandgetting them on time

• Lesschancesof defects in products as suppliers fear loss of nomination and remain cautious

Disadvantages of nomination• Suppliersbecome

overconfidentabouttheir product and in turn alsobecomecallous

• Monoplyofsupplierinthe market

• Leadstounethicalpractices like corruptionbyagentsand traders who lure suppliers into getting nomination at a given cost

• Lossofpricecompetitiveness as suppliers sometimes overcharge

• Manufacturersfallpreyto the situation as they loseprofitabilityongarments/textiles

• Restrictsmanufacturersin getting innovative products as they have to source from nominated suppliers only

According to Sharmila Katre, Professor – B & T Department, PEARL academy, who has 32 years of experience in the industry, nomination is a fantastic system, but loopholes within the system attract corruption also. “Corruption enters when manufacturers become careless and do not order the fabric on time; they delay it as a certain amount has to be made in advance at the time of ordering” says Sharmila. “The delay leads to a situation where the supplier refuses to deliver on committed time and asks for extra money to deliver on the time specified by manufacturer,” she adds. Sharmila feels that manufacturers needs to be proactive in approach and should avoid getting into situations where extra money has to be shed in achieving all the goals.

Another factor that makes nomination a disadvantage is that manufacturers and buyers have to spend more money as on many occasions the manufacturer has to accept higher prices for products and services quoted by the nominated supplier. “Even if a manufacturer can source the same product at 5 dollars, nomination forces them to buy it at $5.20 which is a major disadvantage, especially when the market is tough and highly price sensitive,” adds Sood.

With the market getting more and more tough by the day and increasing competition from neighbouring countries like Bangladesh and Cambodia, it has become even more important to save every single penny wherever possible. Manufacturers have to be very cautious while they close a deal with certain buyer and should include all the inbuilt costs required in the completion of the order.

During our research, Team Perfect Sourcing also found out that many well known buying offices operating in India for more than 40 years are the parties involved in misusing the power of nomination at a very high level. In fact, huge money is poured in through this process of nominating suppliers. Moreover, suppliers are ready to offer generous sums of money under the table to sourcing heads, merchandisers and senior merchandisers for giving them the tag of nominated supplier.

An important question that arises is that in the world of fierce competition how do small trim and accessories suppliers manage to offer generous money as a bribe? On this, one accessory supplier who did not wanted to be named, revealed, “It is quite simple, the extra cost incurred in getting the nomination is compensated for when we get the order on our price and conditions. The manufacturer has to take care of it, not we.” He also disclosed that the buyer confirms a

An important question that arises

is that in the world of fierce

competition how do small trim

and accessories suppliers manage to

offer handsome money as a bribe?

Nomination carries the peril of making manufacturers callous as they ignore quality issues and put the onus of defective quality, delays or any other flaw on the supplier. “The suppliers sometimes work according to their clocks and deliver the merchandise when they wish to as the order cannot be cancelled from our side,” says Vatica Choudhary (name changed), Gaurav Exports, a leading export house offering garments in both knits and woven to many countries. “If anything wrong is supplied by the nominated supplier, the factory/manufacturer simply washes his hands off by saying that the fault lies with the nominated supplier. In such cases, the buyer is the one who suffers,” explains Mitra.


C O V E R S T O R Y

supplier as nominated on the basis of quality and product innovation, so once the manufacturer and buyer are convinced and agree to all terms then it is their headache to keep note of high costs, not the supplier.

Fabric- The Most Alluring Segment for Nomination……………….

Fabric nomination was found to be the most profitable area for making good bucks as 50 percent of the garment is fabric and India is a huge base for getting varieties of fabrics. Mills in India are known to produce infinite number of innovations in fabrics every hour.

Million meters of fabric is being

sourced everyday, imagine

if one cent has to be paid per

meter how much money a company

can make through this

“I firmly believe that nominating the fabric supplier restricts innovative sourcing skills of a manufacturer who can offer the latest collections and fabrics available in the markets. Mills in India or China are still not equipped with facilities to produce every type of fabric and it has to be outsourced from different regions depending on the requirement,” says Dhiraj. Sood agrees with this opinion and feels that nominating fabric suppliers leads to unethical practices as fabric is sourced in huge volumes and some agents make money by getting a fixed amount on every metre of fabric being sourced.

One of the sources also revealed that many buying offices in India are gaining good money from fabric suppliers as they tell them to keep ready a stock of certain varieties/specifications and then they convince the buyer by telling them to make a particular type of fabric and then inform the buyer that that fabric is available only with one fabric supplier. This forces the buyer to nominate that particular supplier for sourcing that fabric and in turn the agent/ buying office gets paid for every metre sourced. “Millions of metres of fabric are being sourced everyday. If just one cent has to be paid per metre, imagine how much money a company can make through this,” averred Sood.

Bashi MP Singh, from HP Singh Agencies, a well known fabric suppliers comments, “Nomination is an opportunity but is also a threat as we have to give very competitive prices. The price of the fabrics also increases due to nomination as there are many favours required to get into that league.”

Regulate Nomination for a WIN WIN Situation

So far there has been no formal method of nomination. Moreover, there are no clauses, no paperwork or terms and condition that can help curb the unethical practices that come up due to nomination. Suppliers or agents can do the same by streamlining the process of nomination and inserting some terms and conditions. Buyers nominate suppliers to centralise one sourcing centre which provides them right quality at the right time; however, they are usually unaware about the negative side of it. Though nomination is a good manner of running business smoothly and eases out things for everybody in the supply chain, whether it is the buyer, exporter/manufacturer, supplier or the agent, it definitely requires certain check points to make it less complicated and biased.

‘Survival of the fittest’ is the maxim with which Allied Export Industries has made its presence felt throughout the world. The company blossomed forth in 1973 and since then has gone on to become one of the leaders in the garment industry. One of the few Government recognized export houses, Allied Exports is targeting a turnover of $70 million in the near future with a growth rate of 10% and more than 1200 workers. Team Perfect Sourcing recently met and spoke with Hari Kapoor, MD, Allied Export Industries, a veteran who has been part of the apparel industry since its inception and thus has in depth vision and comprehensive experience about the industry.

Though the garment export business started in 1973, Hari Kapoor already had a well established family business since 1967. The company, then known as

Hedco, dealt in supplying engineering goods like diesel pumps, tea and other general items to the Middle East. In the interim, a friend who had shifted to Chicago informed Kapoor that there was a huge demand for golf shirts and requested him to find such apparel and supply it to him. “I did a lot of searching and found that a very small segment of the market was involved in the making of golf shirts. So I started a company under the name Kapoor Shirts and hired people to complete the order,” revealed Kapoor.

The company received a regular order of 2-3,000 pieces. Once it was well established, Kapoor decided to visit the market itself and saw that there was a demand for sheepskin jackets. “At that time, the ‘Hippie’ influence was a rage and sheepskin coats were a big fashion statement. All this was made through my partnership with a company

in Afghanistan,” said Kapoor. Soon afterwards, his partner in Afghanistan sent a query for yarns which led him to meet and deal with all yarn manufacturers in the country. “This is how my survey of various markets started, where I explored every item that went out of India.” While sharing his experiences, he disclosed that earlier, overseas business was initiated by travel agents and he also hired one who, after a lot of trial and error, was able to attain business worth Rs 1 Lakh from Indian Crafts, a company in England dealing in Indian products.

By year end 1975, Kapoor had a full fledged exports company on modern lines with an agent in Europe and a liaison office in Amsterdam. The company hired four designers who worked in accordance with the European market and succeeded in fetching orders from Germany. He shared that the Germans were amazed to see designs and quality produced by the company. “Indian garments were never recognized for quality, instead they were known to have food stains and nasty odours. We however, changed that trend.”

A Colloquy with Hari Kapoor, MD, Allied Export Industries

DIVERSIFIcATIoN AND clEAR VISIoN ThE NEED oF ThE hoUR

A Colloquy with Hari Kapoor, MD, Allied Export Industries

F A C E T O F A C E

SEPTEMBER 2012 n perfectsourcing

India has also captured the eye of the global market and companies like Walmart, h&M, Reliance, etc., are coming up. Soon there will be a situation where manufacturers will be confused as to whether to supply to Walmart US or Walmart India.

– Hari Kapoor, MD, Allied Export Industries

Talking about his journey in the apparel trade over the years and his vision, he expressed that India has huge potential and he always wanted to widen industry’s horizons and constricted thinking. He asserted that in this scenario of convergence of global culture, Darwin’s theory would be revisited and only the fittest would survive.

Emerging Competition from Bangladesh

He proved his point by giving an example: Countries like Bangladesh, Sri Lanka and Cambodia, erstwhile non entities, have now emerged as major markets. “If you examine these countries closely, you will find that they owe their success to Indian manufacturers who went out and settled there, “said Kapoor. “With the economic growth, every country witnessed a boom and as a result Bangladesh, to name a country, will soon stand at the position where India was 10 years ago,” he added.

As suggestions to overcome increasing competition, he said, “We need to let them take our place and think of reaching the heights of China.” He added, “The process of displacement and replacement will go on and as a result, competition will be fierce, life will not be easy in the apparel industry and involve more struggle and innovation.”

When Team Perfect Sourcing asked him the solution to this and how to overcome the tough competition, he opined, “We need to re-evaluate our market where we have dwelled so long,” He elaborated that India has always been known for quality, design and workmanship of the garments and the buyers have preferred India because of all these factors.” According to Kapoor, India’s strength has been the manufacture of value added and high fashion and feels that the industry should give up bulk production of $2-$3 garments to Bangladesh as they are good at it. “We should concentrate on manufacturing complicated and strong design garments as the world accepts that we have an eye for these,” Kapoor asserted. He reiterated that the industry should hone its skills and pay more attention to better delivery schedules and quality to remain in the race.

As for the future of the garment industry, Kapoor was optimistic, adding, “Though the growth rate of these countries is quite high and everybody wants to cash in, it is very difficult for them to supply the rising demands of the world market.” As an example, he explained, “Bangladesh has certain limitations over style and design and a trouser factory will only make trousers as they have dedicated machines for certain styles of trousers and will accept orders only for those designs and not buy machines to fulfill orders for other categories.”

Impact of Recession Commenting on the recession, he

stated that industries today are not isolated entities but are connected with each other. Hence it would be wrong to say that only the garment industry is in the doldrums when every industry has been affected. Automobiles were doing well but even that industry has seen a slump; IT is also cracking up. So there is turmoil throughout the globe. “Buyers are cautious and are not ready to give bulk orders, in fact, they are buying the same quantity in 10 orders,” he stressed.

Survival StrategyTo overcome the impact of recession,

the company has gone into extensive R&D, sample development and complicated designs so that there is room to survive. “Due to our foresight, we did not see any shortage in terms of value but there was some in terms of quantity. The high fashion garments entail high prices and as a result the earnings of the company have been the same even in these dire circumstances,” mentioned Kapoor. Another step taken by Allied Industries was to diversify into other markets of Brazil, Argentina and Mexico, etc. Also, the company is taking advantage of climatic opposites in the Southern Hemisphere, so that they remain booked throughout the year. “India is a country with warm climate and winters are very short, hence we are looking for countries having summers in the second half of the year so as to be booked throughout the year,” reasoned Kapoor.

Expressing his views on the regular ups and downs the industry faces, Kapoor said, “This was not the case earlier, as the trouble started only when the quotas opened up and as a result China emerged as a major market.” He added that as China is shifting towards IT and high tech products, India can grab segments of the apparel business.

About the future of the Indian apparel industry he emphasizes, “India has also captured the eye of the global market and companies like Walmart, H&M, Reliance, etc., are coming up. Soon there will be a situation where manufacturers will be confused as to whether to supply to Walmart US or Walmart India.”

Apart from his company, Kapoor is highly involved with the workings of AEPC and is the MD of the council. He has dedicated himself to a fruitful venture as part of the council, i.e., Skill Development for the garment industry. “In these training centres, skill development and construction techniques are given a high priority as we feel there will be a shortage of skilled labour all over the world. Here is a good way to overcome that shortage,” concluded Kapoor.


F A C E T O F A C E

In an exceptional move, the government’s implemention of FDI in retail showcases that India means business. The reform has been met by a mixed response from various states and

segments. Some see it as a benefit to the economy, raising the standard of the organized sector while the rest are of the opinion that the decision will cause serious deterioration in the country’s employment statistics. However, the motion can have multiplier effects and promises to be a boon to the economy.

The rapid growing economy of India has made the country a fashionable and attractive destination in the world for Foreign Direct Investment. The country’s fast expanding markets, liberalisation in trade policies and loosening of diverse foreign investment restrictions have made India a magnet for productive foreign investment.

The Indian Garment Export Sector

India is known for its textiles all over the world and the FDI inflow will help the sector to enhance its growth. The main strength of the Indian garment export industry lies in its manufacturing units. Ample availability of raw material, cheap labour, etc., will get a huge boost from the FDI. Dr. A. Sakthivel, Chairman AEPC said, “It is a win-win situation for everyone. With the amount of money to be invested in the back-end, supply chains and the farm sector will benefit. This move would help bring in the much needed capital for the sector. Even the small and medium enterprises will benefit. Eventually consumers will get a lot of choices and they will get products at better prices.”

National and international companies that are involved in collaborations include Rajasthan Spinning & Weaving Mills, Armani, Raymond, Levi Strauss, De Witte Lietaer, Barbara, Jockey, Vardhman Group, Gokaldas, Vincenzo Zucchi, Arvind brands, Benetton, Esprit, Marzotto, Welspun, etc. Apart from these companies, international apparel companies like Hugo Boss, Liz Claiborne, Diesel, Ahlstorm, Kanz, Baird McNutt, etc., are already operational in India and are seeking to increase their operation to a substantial level.

The Indian Retail SectorThe retail sector in India has witnessed

phenomenal growth and is expected to grow at a rate of 14% by 2013. The policy of allowing 100% FDI in single brand retail and 51% in other sectors will benefit both the foreign retailer and the Indian partner; foreign players will gain local market knowledge and the Indian players can cash in on the technical knowhow and design.

Until now, retail trading except under single brand product retail was banned in India. This implied that for a company to acquire foreign funding, they had to trade their products under a single brand. FDI received in retail segment until 2010 was US$196.46 million which was a mere 0.16% of the total FDI inflow. The percentage of retail stocks rose by 5%, share of Pantaloons rose by 4.84%, Shopper’s Stop by 2.02% and Trent Ltd. by 3.19%. However this was very low in comparison to what it would have been had 100% FDI had been allowed. With the implementation of the new reform, the current situation is set to improve and impact the Indian retail sector profitably.

However, there are others who think the step is not as advantageous as it promises to be and will hamper the business of small enterprises and create unemployment, leaving thousands jobless. Though many states have welcomed the new implementation there are states that have refused to consider the new law.

SWOT Analysis Strengths• Customers will have access to greater

variety of international quality branded goods.

• Employment opportunities, both direct and indirect, have been increased.

• Increase in disposable income and customer aspirations are important factors.

• Increase in expenditure for luxury items is also vital.

Weakness• Will mainly cater to high-end

consumers placed in metros • Retail chains are yet to settle down

with a proper merchandise mix for mall outlets.

• The volume of sales in Indian retailing is very low.

Opportunities• Once the concept picks up, due to

demonstration effect, there will be an overall up-gradation of domestic retail trade.

• Global retail giants consider India as a key market. Food and apparel retail are key drivers of growth.

• It can become one of the largest industries in terms of numbers of employees and establishments.

Threats• Difficulty in targeting all segments of

society.• Emergence of hyper and super

markets trying to provide customer with value, variety and volume.

• Heavy initial investment is required to break even with other companies and compete with them.

• Labour rules and regulation are not followed in organized retail.

"This is one of the boldest and much-needed reform that the Government has initiated inspite of visible compulsion of a coalition Government and with inevitable pulls and pressures of the opposition parties.” He hoped that this would encourage big surge in Foreign Direct Investment in back-end operations and infrastructure for the modern retail stores.

– RAKESH VAID, President, Garments Exporters Association (GEA)


Implementation of FDI Attracts Mixed Response from Industry

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Rakesh VaidDr. A. Sakthivel

Bangladesh is seeing fast growth in textiles and apparels and has an expected growth rate of 20% in the coming year. India on the other hand is hovering around 10-12% mainly due to growing competition from Bangladesh. Bangladesh which started its journey in this industry much after India enjoys 5% share in world exports whereas India still has less than 2% share.

Team Perfect Sourcing talked to leading and experienced players of apparel industry on how we can score over Bangladesh, what should be the strategy to remain at a competitive position and the vision to survive in the long run.

To overcome this situation we need to increase our productivity, offer high fashion and innovative products and also a complete range of products. We need to attract buyers through our heightened sense of design, by spending more on design teams as the amount spent will be justified, by the order received. Next we should focus on increasing our productivity as the whole game depends on that, and by focusing on achieving that we can supply more to the buyers. Naseer Humayun, MD, Indian Designs Exports Pvt. Ltd.

The government needs to offer more support and incentives to the exporters. For example in Bangladesh they don’t need to pay export duty when exporting to European countries. In India too Government needs to offer such kind of incentives for exponential growth. India as a country is strong with good production capacity and back-end infrastructure, whereas Bangladesh has no manufacturing capacity. The only thing it strives on is cheap labour and Government support. Naseer Ahmed, MD, Scotts Garment Ltd.

Bangladesh is able to achieve this because of their scale of business and the scale of factories. Buyers are moving to them because they are doing bulk production. Bangladesh is a small country which has to outsource everything and has no manufacturing process or raw material of its own still it is giving competition to India, which has a complete supply chain with raw material production, to processing, to production of final products. This is because we are not cheap and the main reason is the bottlenecks existing within the country because of our Government policies.Amarjeet Singh, MD, Indigo Apparels

Bangladesh has been growing because they have got the required thrust from the Government only because the garment industry is the only major sector the country has and they depend on it for economic growth. Moreover, they have benefits like GSP facility, proximity to ports, cheap labour and infrastructure that supports their garment industry well. India does not have the thrust from the Government, our labour is expensive because of which we cannot compete with them. Other additional benefits they have is that labour laws in Bangladesh are more friendly and less complicated. The workers also are dependent on garment sector for their living as it is a major industry. In India we have so many industries and sectors so workers have options and do not depend on only garment sector. So the Government needs to support us in our endeavor as exporters are doing everything they can do.Praveen Nayyar, MD, Dimple Creations


IS BANGLADESH SNATCHING INDIA’S GLORY IN APPAREL TRADE

The section HOT DEBATE is an attempt by TEAM PERFECT SOURCING to bring out suggestions and viewpoints of everybody who is the part of supply chain and can make a difference to the situation.

Bangladesh has the advantage of low manufacturing cost, cheap labour and high productive capacity and time, because of which it has competitive prices and today everyone in the world is running after prices. Hence Bangladesh has become the first choice. However, they still have unreliability factors like delivery times, labour unrest, etc., which is not present in India.

India can use it as an advantage to steer buyers towards us. Moreover, we have some of the best workmanship and we can do detailed work, fancy products and garments which require a lot of care and handling. So we need to hone in

on our product development skills. Bangladesh can only do bulk orders and won’t do small orders which India does and nobody can take that away from us.Jagdish Hinduja, MD, Gokaldas Exports Ltd.

Bangladesh being an under developed economy has certain special privileges. The inflation rate is very low whereas the inflation rate in India is high as India is a developing country. As a result Bangladesh has the advantage of cheap labour and infrastructure. Moreover, they have an added benefit of duty free exports, i.e. U.S and Europe can import garments from Bangladesh without paying import duty which lowers down the cost by 10 – 12%. To overcome that India needs to have proper government support in terms of incentives and encouragement. Only then can we capture a bigger share of the market. Manish Mandhana, Jt. MD, Mandhana Industries

Bangladesh is booming right now as the manufacturers who have established units there are outsiders who have large amounts to invest in infrastructure. Moreover importing countries like the US and EU and give preference to Bangladesh as it is an underdeveloped country. It is a part of global politics where other countries put pressure on countries which show a rapid rate of growth. The same applies to India where other countries don’t want India to emerge as a leader and are putting pressure by helping out other underdeveloped countries.

However, where the Indian Garment Industry is concerned Government is lending support in whichever way we can. We have different schemes for example 5% interest subsidy for any kind of modernization without any bars and other additional 10% capital subsidy if it is for machines. Also for SME’s we have 15% capital subsidy. Garment Industry is the only area where we consider subsidiary in factory construction as well providing almost 50% subsidiaries.

Apart from this we have schemes for integrated Textile Parks where we provide 40% capital subsidy. The Government is doing their bit by putting into consideration the problems of the garment industry, still the manufacturers complain that the Government is not helping them in building infrastructure. We have removed licensing and also any kind of registration. We have come up with schemes where the exporter does not need to pay duty on any of the inputs required to manufacture a product if it is imported, plus we have

Competition from Bangladesh is undoubtedly fierce and is increasing everyday. All the same, India has

certain advantages which Bangladesh cannot compete with. For instance, the units in India are flexible to do smaller quantities also and most units are equipped to do a wide range of products under one roof. In Bangladesh, factories are specialized and have expertise of producing only one type of garment. The biggest advantage India has its ability to produce value added garments with high levels of workmanship and styling. The innovative products Indian suppliers can churn out still amaze buyers and we should continue to cash in on these strengths.

As far as changes in Government policies are concerned, our Government is also exploring ways like introducing free trade agreements with countries like EU, by entering into MOUs with many fast developing countries, offering incentives, funding buyer seller meets in India and abroad and also promoting skill development programs to create pools of trained workers. The most important is a 21st century relook at our archaic labour laws which is affecting productivity in all industries. Thus the first and the most critical area that needs Government intervention is LABOUR LAWS.

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the Export Promotion of Capital Goods (EPCG) scheme where they can export machines duty free subject to some export obligations.

If there are exporters who don’t want to adhere to these obligations then we have duty drawback schemes for them.

So our question to the manufacturers is what facility has not been provided and what more do they want from us. The psyche of the industry is that the Government is not helping them. But we always conduct meetings where we ask the exporters what their problems are and try to find solutions for that. Problems like customs and labour reform that do not come under our wing our also considered. AEPC was formed solely for this purpose.

The other problem is the infrastructure; countries like Bangladesh and China have

huge infrastructures, which is not the case with India. We are given small orders whereas the bulk goes to them. The reason is that China is not a democratic country like India. For example when China Government ordered old spindles to be done away with, there was even not a murmur from the industry. However, this cannot be done in India. If the Government orders that all old spinning mills giving low production rate to shut down, there will be mayhem in the industry.

Dr. Ram Ashrey Lal, Director and commissioner, Ministry of Textiles

GOVERNMENT ANSWERS:

H O T D E B A T E


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Former employees of Reebok Arrested

Su b h i n d e r S i n g h Prem, sacked MD,

Reebok India and former CEO, Vishnu Bhagat along with three other employees were arrested for their involvement in Rs 870 crore fraud in Reebok India. Reebok India filed the complaint at the police’s Economic Offence Wing in May,

and alleged that its former Managing Director Subhinder Singh Prem and Chief Operating Officer Vishnu Bhagat were involved in Rs 870-crore fraud by indulging in “criminal conspiracy” and “fraudulent” practices over a period of time. The crimes against which the arrests were made included fraud, criminal conspiracy and other charges under IPC for allegedly siphoning off the sportswear company's money by creating ghost distributors across the country and generating forged bills over the last five years.

TÜV SÜD South Asia Awarded ISO 17020:1998 by NABCB

The National Accreditation Board for Certification Bodies (NABCB) awarded TÜV

SÜD South Asia ISO 17020:1998 accreditation, which details the specs for the competence of bodies performing inspection and for the impartiality and consistency of their inspection activities. Under the new accreditation, TÜV SÜD South Asia would be commissioning inspections across the food (sea food), textile, leather, gas pipeline and infrastructure sectors. The company would also be issuing related inspection reports

and/ or certificates that would reflect whether products / project activities meet the various customer and/or legal requirements. The Mumbai, Delhi, Tirupur, Bangalore and Ahmedabad offices of TÜV SÜD South Asia have been covered under this accreditation, which would be valid for a period of three years starting from July 2012.

RBI’s Decision to Keep Repo Rate unchanged Makes AEPC unhappy

Discovering New Rayon Markets – Grasim and Omikenshi

Grasim industries, a subsidiary of Aditya Birla Group which produces a range of

industrial products including viscose staple fibre, signed an agreement with Japanese textile maker Omikenshi Co. to explore new markets for functional rayon products.

"Synergies between Grasim and Omikenshi will be leveraged for delivering

enhanced value to our customers," said K Maheshwari, MD of Grasim and head of Aditya Birla's pulp and fibre business.

The companies are also deliberating on future collaboration through R&D. As of now, both companies will develop the technology and manage the expected rise in production.

Makoto Otomura, president of Omikenshi, said "We believe that the combination of Grasim's considerable production capacity and Omikenshi's functional rayon technology will open markets for both companies."

The RBI mid quarterly review of its monetary saw no change in the repo rate.

Reacting to the announcement Dr. A. Sakthivel Chairman Apparel Export Promotion Council stated that, “We are not happy with the non reduction of repo rate in quarterly review. He further added that, “The cost of credit is very high compared to the other countries; we lose our competitive advantage as far as capital availability is concerned. We expected that immediate relief to be given to exporters who are facing the problem of credit crunch.” The reduction of cash reserve ratio by 25 basis points, from 4.75 per cent to 4.50 per garnered a response from the Chairman where he said, “Reduction of CRR to 25 basis points will infuse liquidity of funds for the exporters. We request banks to facilitate exporters in liquidating the finances at the earliest.”

However, Dr. A. Sakthivel remains hopeful considering the reduction in CRR which may give more liquidity to banks to give more credits to borrowers, particularly to SME units, which is required at this hour of crisis due to recession in the EU & US market.


Sri Lanka Gets RMG Quotas At Zero Duty By India

High Commission of India, Colombo announces that during the visit of Hon.

Anand Sharma, Minister of Commerce, Industry & Textiles, Government of India, to Sri Lanka in August 2012, the Govt. of Sri Lanka had raised the issue of relaxation in the TRQ condition for fabric sourcing for 5 mn pieces of Ready Made Garments

(RMG) export to India and collaboration in Textiles sector for revival of the textiles industry in Sri Lanka. Hon. Anand Sharma had promised to give favorable consideration to both the requests.

Now the government has accepted both the proposals and a notification is expected to be released soon. Once this takes place then Sri Lanka will be able to export 8 million pieces to India at zero duty under India- Sri Lanka Free Trade Agreement (ISFTA). Apart from this under the revised SAFTA duty regime Sri lanka will attract a duty of 5% as compared to the earlier 11% which will enhance greater exports from Sri Lanka to India. The decisions have been welcomed by both the Government and Sri Lankan Textile industry as part of the steps taken by India to increase the export capacity of Sri Lanka and reducing the bilateral trade deficit.

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OptiTex Strengthens Positioning in Asia – Unveils Hong Kong Office

OptiTex, the provider of 2D and 3D CAD/CAM and Virtual Prototyping

software solutions, recently declared the launch of a new corporate office in

Hong Kong, and the appointment of Nick Wei as its Regional Sales Director. The new office will support the company’s sales and marketing throughout the region and introduce the latest advancements to the Asia-Pacific market.

Nick Wei, who has over 20 years experience in the garment industry, will take responsibility of all commercial aspects. Wei has in-depth experience in the Asia market and has been into the garment technology field since 1999 as pre-sales, sales and project manager. Ofer Asif, OptiTex's VP Asia & Emerging Markets commented, "I am happy to have Mr. Wei join our team. The Asia Pacific market for garment industry solutions continues to grow and we realized it was time to open our local offices, to serve the region's growing demands, as well as enable us to be more responsive to local market needs."

The launch of the new office is part of OptiTex’s plan to spread their knowledge and deliver better output to their customers.

NID Declared as Center of Excellence

The National Institute of Design is set to be

announced a Center of Excellence and a bill is going to be proposed in the parliament regarding this. The final touches to the bill are in process and will soon

be approved by the Union Cabinet. The decision has been taken and the legal vetting of the bill is in process. As a result students joining from India or abroad will be awarded degrees, similar to those from other institutes of excellence i.e. IIT and IIM.

The process of declaring NID a centre of excellence, was set in motion around two years ago. Currently, it awards diplomas for its UG and PG programs. Other plans include opening of a Jewellery Design Centre and Automobile Research and Design Centre at the NID Gandhinagar campus, under the 12th five year plan and a mess of recreation centre, for which the center will be allotting Rs 25 crores.

Indigo Price Rise Waved off by Indian Denim Makers

The 25% rise in cost of synthetic indigo dye has been well received by the Indian denim

manufacturers though they have also warned that they may pass on the cost in the next season. In a span of few months the price of dye has gone US$7.3 to US$9.1 per kilogram. According to reports some are of the opinion that the rise is due to the depreciation in the value of Indian rupee. The manufacturers are of the opinion that due to the lack of time the prices cannot be increased as the prices have already been committed however they are hopeful that they will be successfully able to pass on the costs in the coming season.


Sales at uK Retailers See Surge in August

Sales at UK clothing and

footwear stores rose in August, whereas it saw an overall decline i n t h e r e t a i l sector during the month. Sunshine and Olympics

contributed to the boost in demand and as a result, sales at clothing, textile and footwear stores increased 1.6% in August from the previous month, while sales at sporting goods and toy retailers rose 1.5%.

The ONS said report suggests demand was enhanced by football shirts at the start of the new season and the European Championships, as well as due to Olympics. The overall volume of retail wentg down by 0.2%, whereas the amount spent increased by 0.2% and retail sales rose by 2.7%.

Adidas Targets Low Sales for Reebok in 2015

Adidas group lowered its 2015 sales target for its brand Reebok to 2 billion

euro from 3 billion euro.The reduction was followed after the decision to not renew the previous NFL (National Football League) license and a change in reporting of National Hockey League related license, along with sales and the Group’s focus on margin and

operational efficiency. “Our razor-sharp focus on fitness will allow us to capture the hearts and minds of all fitness enthusiasts worldwide. Our new category structure will bring more focus and a deeper product offering and will provide better commercial opportunities as we turn the corner into 2013,” Reebok Chief Marketing Officer Matt O’Toole said.

Li & Fung signs new Agreement for sourcing deals with Wal-Mart

Li & Fung who signed a sourcing deal with Walmart two years ago, replaced it by a new agreement which enables the company to offer

an array of new services to Walmart. The original deal, involved setting up of a sourcing unit, which was reported to have a potential to buy goods worth $2 billion in the 1st year. The new arrangement entitles that though Walmart no longer can purchase the entire shares, the unit will still remain the direct resource, for the retailer's Sam's Club warehouse format in the US. The new agreement which has been inked for five years and can be extended for another two years will provide buying agency services to Walmart in the US on a category specific basis. Apart from this another of Li & Fung's subsidiaries will trade with Walmart International markets on a principal to principal basis." "The move to a supplier relationship will allow the group to provide Walmart International markets with design, replenishment and other services that could not be provided as a buying agent," said Li & Fung.

VF Anticipated Better Revenues from Asia

VF Corporation aims to influence leading brands such as Timberland and Lee to more than double its

revenues in the Asia Pacific region to US$2bn by 2017. The company unveiled its plans to add $1.1bn in revenues

from the region over the next five years, through growth from its five marquee brands: Timberland, Lee, The North

Face, Vans and Kipling. The annual revenue growth will witness a growth rate of 17% if the target is achieved. Also the company expects the sales from Asia to increase by 20% in the year, while in Europe it is expected to increase by double digits on a lower side. The growth rate expected to take a share of 60% based on its YOY growth of 21% while India’s revenue is expected to grow by 22% annually, Japan’s by 8% and Korea tops the chart with an expected growth rate of 52%.

Nicole Richie’s Limited-Edition Collection Launches at Macy’s

Macy’s will launch the new “Nicole Richie for Impulse” collection, featuring limited-edition items in the designer’s classic style, including

1960s and 1970s influenced silhouettes, prints and fabrications. The collection will offer those who covet fashion a combination of sophistication and edginess that remains true to Richie’s bohemian aesthetic.

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Pakistan factory fire swallows nearly 300 garment workers

Fire in a textile factory in Karachi, Pakistan killed nearly 300 workers trapped inside

the factory and raised questions on the lack of regulation in a vital sector of Pakistan’s faltering economy. The accident was one of the country’s worst and followed a fire at a shoe factory which killed at least 25. Flames and smoke swept the cramped textile factory in Baldia Town as the workers had only one escape option owing to all except one gate being locked and the windows barred. In the frenzy many jumped from the four story building to save their lives, sustaining serious injury in the process. However most were no that lucky and were trapped by the Fire inside the building.

The Human Rights Commission of Pakistan asked the Government for immediate investigation.


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Demerger of Pantaloons approved byBOD’sofPeterEngland

Th e B o a r d o f Directors of Peter

England Fashions & Retail Limited (PEFRL), a w h o l l y o w n e d subsidiary of Aditya

Birla Nuvo Limited (ABNL), at its meeting held, approved the Scheme of Arrangement for the demerger of “Pantaloons Format” business into PEFRL. This is further to the in-principle approval given by the Board of Directors of ABNL on 30th April 2012.

The Board of Directors of PEFRL also approved the share entitlement ratio in relation to the demerger. Accordingly, upon the effectiveness of the Scheme of Arrangement and under its terms, the equity shareholders of Pantaloon Retail (India) Ltd (PRIL) will receive 1 (one) fully paid up equity share of Rs. 10 each in PEFRL for 5 (Five) fully paid up equity share(s) (including DVR equity shares) of Rs. 2 each held in PRIL.

The transaction is expected to be completed within six months, subject to the requisite statutory and regulatory approvals, including those from the stock exchanges under the listing agreement, shareholders, creditors, competit ion commission of India and the Hon’ble High Court of Judicature at Bombay.

Pepe Jeans’ new flagship store captivates the streets of Mumbai

Pepe Jeans London launches i t s internationally styled, high street fashion

inspired flagship store at Linking Road, Khar, Mumbai. The new store sets a benchmark by providing a vibrant youth culture and a portal to a new experience of fashion.

The new store conforms to the international standards and is a place where fashion meets craftsmanship and quality with a larger than life appeal. The store is spread across 1000 sq.ft and guarantees to be one of the most innovative, contemporary and universally designed stores, well designed with antiques and vintage accessories, on par with global standards.

Mr. Chetan Shah – Managing Director, Pepe Jeans London, India said, “Pepe is setting a new benchmark of the ultimate international retail shopping experience. The international store layout has been designed to act as a continuous fusion of quality fashion products and interactive environment.” He further added, “With this Pepe Jeans is all set to showcase the most comprehensive and trendiest collection of denims and casual wear which will provide our consumers an exclusive shopping experience unlike any other brands.”

Hackett London associates with Madura F&L for India venture

Madura Fashion & Lifestyle (MFL) announces a joint venture with Hackett London - the British men’s

luxury clothing and accessories brand. The moves seals the global expansion plan of the brand into South East Asia and marks MFL’s first foray into the luxury mono brand business.

Mr. Ashish Dikshit, CEO, Madura Fashion & Lifestyle comments “As part of our international brand strategy, we aim to launch select international brands within the Madura F&L portfolio. Our partnership with Hackett London clearly establishes our intent and we plan to bring in few more brands to India from around the globe. This is in line with our vision to strengthen our leadership position across various segments in the apparel industry”.

Mr Vicente Castellano, Managing Director of Hackett London said, “India, as one of the key growth economies of the world, has been on our radar for some time and now with our recently concluded joint venture with Madura, we have the right partner to tackle India successfully. Madura’s undoubted understanding of the Indian men’s fashion market combined with the appeal of Hackett London will enable Hackett to build a strong business in India and bring our “Essentially British” world to the Indian consumer.”

51% FDI implemented in multi-brand retail

Denizen brand to be pulled out from Asia

The government of India has implemented 51% FDI that allows

global multi brand retailers to invest in the Indian market. The decision

is applicable in 10 states a n d u n i o n territories, who have agreed to implement the Government’s decision.

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minimum investment criteria for foreign investors is US$ 100 million, of which, a minimum 50 percent should be invested in back-end infrastructure during the first three years.The DIPP notification also puts into effect the Cabinet decision to relax the 30 percent local sourcing norm for foreign retailers who invest more than 51 percent for setting up single-brand outlets.

Levi Strauss & Co. announced that it will pull out the dENiZEN brand from Asia, including

India, in the next twelve months so that they can concentrate on growing their core Levi’s brand. It is a strategic decision made by the company to focus on driving profitable growth.

Currently in India, dENiZEN operates through a network of 272 stores in cooperation with franchisee partners. “Across our company, we are focused on providing our consumers with great products, driving growth and innovation,” said Sanjay Purohit, general manager of India for Levi Strauss & Co. “We made the strategic decision to phase out the dENIZEN brand in order to focus on growing the core Levi’s brand. We value the relationship with our employees and business partners and recognize their contributions.”

INDUSTRy oN ThE

MoVEBiochem Industries Receives Quality Excellence Award

Biochem Industries has been recently honoured with “Quality Excellence Award” on 35th National Seminar on “Individual Achievements and national Development” was organized by All India Business Association and Global Society for Health and Educational Growth” and Constitution Club of India, New Delhi. The award is recognition for its marvelous contribution to the industry and for its relentless efforts in the arena of Good Service with Quality. The award takes into account strict selection process and validation of all the information.

HS Singha Receiving Award for Excellence in Quality


ISQAA Starts New Sourcing Office In JodhpurISQAA Sourcing Private Limited a buying office that sources product like apparel categories, accessories, home textiles and home décor (hard goods), and accessories has started a new office in Jodhpur. The Jodhpur office is spread across 2000+ sq.ft and has strength of 6 ISQAA brigade to assist the business and improve physical presence in the factory. The Jodhpur office is set to manage 400 plus 40’ containers in a season across the world which includes Fabrics, Furniture and Décor categories. Apart from having operations in Gurgaon, Bangladesh, Sri Lanka and China, the company is also present across five Indian cities,

including Mumbai, Agra and Tirupur. As of now the company caters to Thailand, Vietnam, China, Pakistan, Sri Lanka and Bangladesh. The further expansion plans include increasing the company’s presence in China provinces, Vietnam and Malaysia to offer clients a one stop solution for their complete sourcing and quality assurance requirements across the categories. The company provides assistance in a wide range of products ranging from garments, jewellery, handicraft, building hardware, accessories, etc.

The company founder Dhiraj Kapoor on the occasion said, “it has always been my vision to cater the clients with 100 % commitment with a assurance of ZERO CLAIM and 100% on time shipments. Though our 1st time pass inspection rate and on time shipments were around 89.5% last year, I feel that still we need to achieve minimum 96-98% grade and for which I have decided to have my hands in the factories as much as possible.”


Textile materials can be exposed to contaminat ion wi th microbes (bacteria, fungi, algae) during production, usage and storage. The

microbial attack of textiles leads to quality losses due to changes of colour and appearance or to reduction in strength and can result in unpleasant odour formation. Moreover, since microbes are absorbed by textiles, there is a risk of contamination and infection. Microbes are too small to be seen by the naked eye. As may be expected, there is an increase in demand for antimicrobial active agents to impregnate textile material (woven and non-woven) chemically or naturally in order to create additional properties (functional textiles).With synthetic and natural fibre blends, this may create better physical and chemical properties. The antimicrobial property of fabric is considered important and an inevitable parameter for garments in direct contact with the human body.

Though the use of antimicrobials has been known for decades, it is only in the recent couple of years that several attempts have been made on finishing textiles with natural and chemical antimicrobial compounds.

The present work aims at developing application of natural and chemical antimicrobial finish from Clove Oil and N9 on 50:50 Nylon Cotton (NYCO) blend.

An extensive study was conducted to assess the antimicrobial effectiveness of natural and chemical antimicrobial agents by employing standard test methods. Anti microbial finish is a

recent innovation in textile finishes. This finish prevents the growth of bacteria and products finished with antimicrobial finish have been proved to be environment friendly, health protecting while also preventing diseases and eliminating unpleasant odours. The result of the antimicrobial activity is based on the standard test method AATCC 147 for evaluating antimicrobial effectiveness.

1. MethodologySelection of Area: - The Experiments were carried out in the laboratories of NITRA, V.M.L.G College and Dr. Parul Pathology Lab.

Selection of Base Material: - NYCO (Nylon 6,6 and cotton blend) fabric were used in this thesis. NYCO fabric is soft in handle and more spacious in structure so that antimicrobial finish can easily penetrate in between the spaces of fabric. NYCO fabric has good stretchability, absorbency, fitness, durability, tenacity & comfort and is thus taken up for study.

Collection of Raw Material l Fabric: - NYCO fabrics were collected

from NITRA.l Antimicrobial Finish: - Antimicrobial

finish was brought from Resin Pvt. Ltd (Bangalore).

l Bacteria: - They were carried from T.B Hospital, Dr.Mynaidu [Mehrauli, New Delhi].

l Clove Oil: - Clove oil was bought from a Chemist Shop in Delhi.

l Prepared Petri plates :- 1) Blood AgarThese Prepared Petri plates were

carried out from Krill green medical devices ( Mayur Vihar).

Selection of Technique: - In this study two techniques were used for application of antimicrobial finish.l Pad dry cure method.l Exhaust method.

2.2 Chemical finish :- N9 Silver finish was applied. [Application through Resin]

Recipe:l Fabric Type :- 50:50 NYCO Blendl Dosage of N9 Silver: 1% - 2% (Dosage

is taken according to weight of fabric).

l Dosage of SEA (Surface Enhancing Agent): 1% (Dosage is taken according to weight of fabric).

Process Control:-l pH :- 5.5 to 6l MLR :- 1:10 l Temperature :- Room temperature. l Time: - 30 minutes and after

application, kept for line drying.

Procedurel Make acidified bath water first and

add SEA (in the form of a gel).l Stir continuously for several minutes

to make a homogenous emulsion.l Add the recommended quantity of

N9 Pure Silver.l Mix it thoroughly to get a pale yellow

coloured homogenous solution and then add the remaining water.

l Application was done by exhaust method and exhaustion is complete when it changes from a light yellow coloured, hazy solution to a colourless transparent solution.

2.3 Test Organisms (AATCC-100-2004)

Test Bacteria: This bacteria was tested against antimicrobial finish.l Staphylococcus species, Gram

positive Organ

Culture MediumNutrient Broth:Peptone (Bacto peptone) = 5 gmBeef extract = 3gmDistilled water = to 1000 ml1. Heat to a boil to disperse ingredients.

Adjust to pH 6.8 ± 0.1 with 1 N sodium hydroxide (NaOH) solution. (This is not necessary if a prepared, dehydrated medium is used).

2. Dispense in 10 ml amounts in conventional bacteriological culture tubes (i.e. 125 x 17 mm). Plug and sterilize at 103 kPa (15 psi) pore 15 min.

3. N u t r i e n t a g a r : A d d 1 . 5 % bacteriological agar to nutrient (or appropriate) broth. Heat to boiling. Check pH and adjust to using NaOH solution if necessary. Dispense in 15 ± 1 ml amounts in conventional bacteriological culture tubes. Plug and sterilize at 103 kPa (15 psi) for 15 min (may be sterilized in 1000 ml borosilicate glass flasks and petri dishes poured from this).

4. S lurry Inoculum carr ier ( for hydrophobic fabrics )

Sodium chloride 8.5 g Agar 3.0 g Distilled water 1000 mL

Imparting chemical and Natural Antimicrobial – Finish on 50:50 Nyco Blend

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Maintenance of Culture of Test Organisms

Using a 4mm inoculating loop, transfer the culture daily in nutrient (or appropriate medium) broth for not more than two weeks. At the conclusion of two weeks, make a fresh transplant from stock culture. Incubate culture at 37+_ 2º c (99 ± 3º F) or other optimal temperature.Maintain Stock cultures on nutrient or appropriate agar slants. Store at 5±1 ºc (41± 2º f) and transfer once a month to fresh agar.

Qualitative Testing A clear zone of inhibition ensures

antibacterial activity of finish since zone of inhibition occurs as a result of the diffusion of an antimicrobial agent from the finish. An inhibition zone >2mm. indicates good antibacterial effect.

Procedurel Agar plates were swabbed with

the broth cultures incubated for 24 hours.

l After swabbing, the agar plates with respective bacteria used in the study (treated samples of 2cm diameter) were pressed against agar surface in the middle of the plate with a pair of forceps been sterilized in flame and then air cooled immediately before use.

l These plates were then incubated at 370°C for 24 hours.

After 24 hours the incubated plates were examined for clear zone of inhibition. The average width of the zone of inhibition on either side of the fabric was calculated using the following equation:

W= (T-D)/2 Where,W= width of inhibition (mm),T= Total diameter of fabric and clear zone (mm) andD= Diameter of well created (mm).

Precautions:l All testing was conducted in a laminar

chamber.l All apparatus was sterilized before

use. l After testing was completed, material

Fig. 3.1 : The Zone Of Inhibition of Staphylococcus on NYCO Blend (50:50) Against Natural Finish

Fig. 3.2 : The Zone Of Inhibition of Staphylococcus on NYCO Blend (50:50) Against Chemical Finish

Figure 3.3: Comparison between Natural & Chemical finish on NYCO Blend (50:50) against Staphylococcus

Table 3.2 shows that the zone of inhibition of Staphylococcus is 0.0 mm. in controlled, 1.5 mm. in 1% finish and 2.5 mm. in 2% finish.

Table3.3–ComparisonbetweenNatural&ChemicalfinishonNYCOBlend(50:50)againstStaphylococcus

Finish Natural Chemical Controlled 0.0 mm. 0.0 mm.1% finish 3.0 mm. 1.5 mm.2% finish 6.0 mm. 2.5 mm.

This table exposes that the zone of inhibition of Staphylococcus in natural finish was excellent in 1% and 2% finish in comparison to chemical finish. In case of controlled condition, the zone of inhibition of Staphylococcus was absent in natural as well as in chemical antimicrobial finish.

SuMMARY AND CONCLuSIONGrowing awareness towards harmful

effect of microorganism upon human hygiene as well as textile has increased the demand of antimicrobial textiles. In addition, the desire for healthier life style and to protect the cloth from bacteria and surroundings is the driving force behind the development of anti-bacterial and anti-fungal effect. Natural compound (Clove oil) and chemical compound (N9) were selected as antimicrobial finish for this study. Clove oil was applied through pad dry cure method and Silver finish (N9) through exhaust method.

After application of antimicrobial finish, the selected fabric were tested against Staphylococcus for antimicrobial property. The result revealed that the zone of inhibition of staphylococcus was absent in controlled condition, 3.0 mm. in 1% finish, 6.0 mm. in 2% finish against natural finish (Clove Oil) on NYCO Blend whereas in case of chemical finish (N9) the zone of inhibition was absent for controlled condition, 1.5 mm. in 1% finish and 2.5 mm. in 2% finish.

It can thus be concluded that natural antimicrobial finish had good antimicrobial property in comparison to chemical antimicrobial finish and should be applied on fabrics to protect them from microbes.

By – Sneha Sharma*, Ratna Tiwari**, Dr. Sandhya Kaushik**and Dr.M.S.Parmar***

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l Some of bacteria used in this test are capable of infecting humans and producing diseases. Therefore every necessary and reasonable precaution must be taken to eliminate this risk to laboratory personnel and to personnel in associated environment. Wear protective clothing and respiratory protection that prevents penetration by the bacteria.

l Good laboratory practices should be followed. Wear safety glasses in all laboratory areas.

l All chemicals should be handled with care.

l An eyewash/safety shower should be located nearby for emergency use. [Srivastava, A]

2. Results and DiscussionAntimicrobial finish was applied on

50:50 NYCO blend fabric with different percentages of finish i.e. 1% and 2% finish. Natural (Clove oil) and chemical finish (N9 Silver-based finish) were used for the application. Qualitative testing was used for evaluate the growth of microorganism. An inhibition zone >2mm, indicated good antibacterial effect. After testing of microbes, comparison has been made between chemical and natural finish.

Table3.1:TheZoneOfInhibitionofStaphylococcusonNYCOBlend(50:50)Against Natural Finish

Finish StaphylococcusControlled 0.0 mm1% finish 3.0 mm2% finish 6.0 mm

Table 3.1 shows that the zone of inhibition of Staphylococcus is 0.0 mm. in controlled, 3.0 mm. in 1% finish and 6.0 mm. in 2% finish.

Table3.2:TheZoneOfInhibitionofStaphylococcusonNYCOBlend(50:50)Against Chemical Finish

Finish StaphylococcusControlled 0.0 mm1% finish 1.5 mm2% finish 2.5 mm


T E C H N O L O G Y U P D A T E

Neo-Percler PVA, an Eco Friendly Method to Recover Polyvinyl AlcoholAlokIndustriesLimitedInstallsIndia’sFirstPolyvinylAlcohol Recovery PlantTextile Major, Alok Industries Limited, has installed a Neo-Percler Polyvinyl Alcohol (PVA) Recovery Plant. This system recovers and reuses PVA which is used as a sizing agent, and is not only useful for reducing burden on the environment, but also contributes significantly to reducing costs by reuse. This PVA recovery plant recovers 90% PVA by the centrifugal method and increases weaving efficiency with use of recycled PVA. The Neo-Percler maintains the performance of former models, versatility has been improved, and costs have been held down with the use of common parts. Delivery time has also been shortened considerably, and its compact design enables installation in smaller spaces.

Size removed from woven fabric is often the largest source of Biological Oxygen

Demand (BOD) in wastewater from textile finishing plants. Both BOD and Chemical Oxygen Demand (COD ) are prime targets for increasingly stringent wastewater regulations. In many cases, mills face the enormous cost of upgrading treatment facilities to comply with new regulations. One alternative is using a higher percentage of polyvinyl alcohol (PVA) in a PVA size formulation, which not only increases BOD but also allows lower add ons to achieve required yarn performance properties during weaving. However, a PVA recovery plant is an eco friendly step to prevent environmental pollution and the right solution to prevent drainage of foreign currency,

Using 100-percent PVA formulations for certain fabrics significantly increases COD/BOD levels compared to starch and also presents opportunities for size reclamation and reuse. Degrading it by using common micro-organisms is difficult. Therefore, desizing waste water residue of textile processing industry contains large quantities of PVA, resulting in serious environmental pollution. PVA has very high COD, approximate 40,000 ppm, and biodegradability is very low.

The Neo-Percler centrifugal system has proved to be the best possible method to recover PVA

COD of Waste Water:

COD 82% DOWN

PVA recovery ratio is 90%.

6,800 ton/day….COD 250PPM 6,800ton/day….COD 45PPM

(Biological Treatment only) (Combination with NEO-PERCLER)

from waste water discharge post desizing. After PVA recovery from the waste water, COD is reduced by 80% and remaining COD can easily be treated in the Effluent Treatment Plant, thereby eliminating almost totally the PVA of the waste water from the desizing process.

While the raw material cost of PVA is greater than that of starch and the initial capital investment for a reclamation system is large, the wastewater treatment upgrade obviated, combined with raw materials saved, can result in a quicker-than expected payback.

The plant, manufactured by Sando Iron Works Co., Ltd. provides high recovery rate of over 90% PVA in the waste water. Moreover, NEO-PERCLER is easy to operate and is maintenance free.

The most critical feature is that the recovered PVA can be reused. The yarn and recovered PVA is flexible and is suitable for air jet looms.

Article is contributed by Mr.S.S.Aich, CEO, Alok Industries Limited. Under his leadership, the company has shown overall turn around in production, quality and cost reduction within two years. He has earlier served in reputed textile industries like JK Cotton, Vardhman & Nahar, etc.

S.S.Aich, C.E.O. Alok Industries Limited

37 auguST 2012 n perfectsourcing

F A I R & E V E N T S

The India International Yarn Exhibition, commonly known as Yarnex and held at India Knit Fair Complex, Tirupur completed its fourth edition

successfully with around 4,801 visitors, attracting buyers from countries like China, Spain, Sri Lanka, Italy, Poland, Middle East, African and the South American continent. The show saw participation from 50 exhibitors from the yarn and fibre sector which also included a number of new entrants, depicting the importance of the platform in the industry.

The three-day show that was held from 31st August –2nd September, 2012, was inaugurated by Raja Shanmugam, member of Cotton Advisory Board, Government of India and M. D. Warsaw International, Ahil Rathinasamy, President, Knit Cloth Manufacturers Association, and S.V. Elangovan, Chairman, SNQS International, amongst others.

Another major highlight of the show was the debut of TexIndia - Apparel Fabrics and Accessories Fair. The inclusion was taken into consideration after witnessing a rising demand from traders demanding sourcing facilities for readymade fabrics and accessories. Participants felt that the fair was a good platform as it attracted manufacturers and suppliers from Tirupur Coimbatore, Erode, Salem, Karur, Kozhikode, Kannur, Mumbai, Chennai, New Delhi, Bangalore, and Kolkata.

The products displayed included the latest in grey, dyed, fancy, synthetic, blended, melange, metallic, zari covered yarn, recycled polyester and recycled cotton fibre yarns and fabrics, etc. Besides interlinings, embroidery threads and backing, buttons, laces, zippers, eyelets and allover embroidered fabrics, clothing accessories for innerwear and outerwear were also showcased. M. L. Jhunjhunwala, President (Marketing), RSWM Ltd, said: “The visitor flow was very steady and all of us were very busy. Our participation has been quite successful. With improved sentiments in the market, we have had a positive impact at this show.” The company had displayed a wide range of new products like bamboo yarn, carpet yarns, PC yarns, modal cotton blends and Liocel based yarns.

First time entrant Rajesh Bisht, Manager - Marketing, Sumilon Industries

yarnex and TexIndia Show at Tirupur Garners Positive Response

Ltd, Surat said: “Overall, a good show. We got inquiries for threads and we feel it will be converted to business soon.” Sharad Sharma, Vice President (Marketing), Winsome Yarns Ltd., said, “The turnout and footfalls were as expected. We also got to meet a lot of people we had not seen for a long period of time, as also people who we had only spoken on the phone to.”

Visitors were also satisfied with the outcome of the event. Cino Capelo, Sales Manager, GCAP Business Company, Ecuador South America, said: “I’ve made a few good contacts here. We were looking for different types of yarn like cotton, polyester viscose, and blends. We have taken all the technical specifications and will shortlist one or two of them.” Lana Zou, CEO, India Office, JSM (Shenzhen) Enterprises Co Ltd, China, said: “The show was good. I was specifically looking for cotton yarn and was able to find a number of good suppliers here.”

Ms Anna Garnys, Commercial Director, Martis S. A., who had come in from Poland, noted: “We import around 5 – 15, 40 foot containers of cotton yarn every month. Multiply that by 20 tons in each container and the amount we import is quite a bit. We found at least three sources at this show here. It’s going to be a positive one for sure!”

S o u r c i n g H e a d s f r o m companies like Shahi Exports,

Gokaldas Exports were also seen at the show. A. N. Reddy, DGM Fabric Sourcing, Shahi Exports Pvt Ltd, Bangalore, said: “The show is good. I t helped me in seeing the new developments and meet new people. I also saved a lot of time meeting so many people and helped in gauging how far we are in the market.”

The Business Networking Forum (BNF) held at the fair discussed two topics namely ‘Strategies for infusing growth in Tirupur’s resilient knitwear industry,’ and ‘Using innovation to enhance India’s share in the global textile and clothing market.”

Shri Ahill S Rathinasamy, President, Knit Cloth Manufacturers Association (KNITcMA) inaugurating YarnexTexIndia 2012 alongwith industry stalwarts

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Damco with key appointments strengthens its organizational capability in South Asia

DB Schenker logistics creates more options for tracking consignments DB Schenker Logistics is now offering more options for tracking consignments through its new Advanced Air & Ocean tracking service. Clients that use DB SCHENKER smartbox service for ocean freight can track their consignments through a map in real time, 24- hours a day using GPS. Also variety of sensor parameters such as the temperature, humidity, G-force, inclination and light can be used.

The new eNotification feature for air freight lets customers set up and save notifications for specific trade lanes and ports or airports. Notification of any changes can be received through mail.

Diederick de Vroet, Head of Global Ocean Freight at DB Schenker Logistics said, “When we spoke with customers, many expressed a desire to optimize the information provided and to enable consignments to be tracked more easily. We were happy to address this concern.”

Freight charges raised by transporters

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Located about 30 km from Chennai Port, it recently received an amended notification from the Central Board of Excise and Customs (CBEC) allowing loading and unloading of export and import cargo. The port has been ready since March this year.

The CBEC approval reportedly came after the Commissionerate of Chennai Customs inspected the CFS located inside the port, according to sources.

Damco appoints T.N. Seetharaman as Chief Operations Officer and Pankaj Gupta as Head, Key Account Management for its South Asia region including india, Bangladesh, Sri Lanka, Pakistan, Afghanistan and Nepal. T.N. Seetharaman, has over 30 years of experience in the industry and brings with him a diverse experience of leading profit centers, managing large teams and has demonstrated success in delivering results while developing strong relationships with customers.On the other hand Pankaj Gupta with his 25 years of experience has worked in an assortment of roles including sales, marketing, profit and loss management and operational responsibilities on an all india basis.

With these appointments Damco looks forward to seal its position as one of the leading logistics company in South Asia and advance its relationship with its existing clients. The group has also decided to move its headquarters from Copenhagen, Denmark to The Hague, Netherlands. The move is expected to complete in Q1, in 2013 and will bring the company closer to the European Logistics community. The move to The Hague will allow Damco to optimize its cost structure, bringing it closer to the level of its primary competitors in the region.

The steep hike in diesel price has resulted in truck operators raising freight charges by 15 per cent across the country with immediate effect.

According to an All india Motor Transport Congress (AiMTC) release, truck operators have decided to pass on the burden of the increase to customers as the transport industry was not in a position to absorb the hike.

The release stressed that operators had no other option but to increase charges despite the fact that it would have a cascading effect on the prices of basic items.

T.N. Seetharaman Pankaj Gupta


Galleria Intima –the B2B FAIR for

SEGMENT SEES A PoSITIVE DEBUT EDITIoN

Galleria Intima, a fair dedicated to the intimate apparel industry (IAAI) held its debut show from 28-29th August, at Grand Hyatt, Goa. The Fair, which, so far is the only one for intimate apparels, saw participation from the who’s who of the intimate apparel industry. Major players from the segment including company like Invista, Lenzing Fibers, Alok Industries, Birla Cellulose , Grasim Industries and many more were seen showcasing their latest products for the category. Domestic brands like Groversons, Bodycare, Bonjour, Fruit of the Loom, Jockey were also seen at the show. Major traffic was seen from the Western part of India i.e., from Mumbai, Surat and Ahmedabad.

Though the traffic at the Fair was not high, exhibitors were more than happy considering

that it was the first edition in the segment and had attracted some serious visitors from the intimate apparel segment. The exhibitors displayed a plethora of products including fabrics, accessories, trims and machines developed for the industry. Moreover, several companies offering software for the segment, like Tukatech and Optitex, were also seen at the show.

The Fair was inaugurated traditionally with Rakesh Grover, President, Intimate Apparel Association of India lighting the lamps along with other committee and Federation of Hosiery Manufacturers Association (FOHMA) members. The inauguration was followed by a seminar on the Vision for Fashion Industry’s New Technosphere, where the Speaker, Ram Sareen, Founder & CEO Tukatech, discussed the

viability of 3D CAD applications for design, customisation and personalisation tools for the apparel industry.

The first day of the show saw many prominent members from the industry present at the exhibition. Vineet Nagpal, GM, Groversons said, “The show was excellent from the sourcing point of view as it is the first Fair in India for this category. Besides, till now we have been sourcing all our products from the international market, making this a good platform to source from India itself.” He added that though the Fair was good, if the scale and size of the Fair was increased, it would be even more beneficial for both participants and visitors. “The Fair has garnered a good response in its debut edition,” he stated. Many of the exhibitors expressed that even though the Fair was conducted on a small scale with few exhibitors, it was able to generate good business prospects for many.


Rakesh Grover, President, IAAI & MD, Vineet Nagpal, GM,(extreme right) Groversons Apparel Pvt. Ltd. with P.S. Fashion Team members

(L-R) Avinash Chandra, Marketing Head with Andrew Evans, MD, Invista India Sales & Services Pvt. Ltd. during the seminar session



creative covers Pvt. ltd. – Taking Schiflle embroidery to new levels

Creative Covers, offering a wide range of embroidered fabrics

and lace to the industry and has latest state of the art machinery from Lasser, Switzerland, participated at the show. The company was founded seven years ago and since it was a new segment, an extensive market research was conducted to understand the market better. Commenting on the Fair Sumeet Pahwa said, “We anticipated more visitors and are a bit disappointed. However, as it is the first time we don’t have any grudges.” He disclosed that fabrics and trims for intimate wear were mainly imported

from China earlier because of cheap prices and better quality. Today, even China gets its processing done in Thailand so now companies are ready to source from India too. “The plus point of India is that we have better production process and accuracy. Earlier, the quality here was not high because of which companies like Schiflle were not doing well,” asserted Sumeet. Commenting on the Schiflle embroidery he said that it all depends on the number of stitches a fabric holds. Stating an example he said, “The fabric which is priced at Rs 210/m has 33,670 stitches. The cost can be brought down to Rs 140/m by reducing the number of stitches to 25,000.”The company supplies fabrics to GAP, Radnik Exports, Sunburn, among others.

Magpie Impex – Driving the industry towards excellence

Magpie Impex, established in 2003, is an importer and trader of a wide range of Fashion Accessories, Women Garments, Beach

Wear and Promotional Sales items. The company is recognized for contemporary looks, crafted finish and durability. Team Perfect Sourcing caught up with Ankit Mehra, Manager, who spoke about the latest ventures of the company.

“We are basically importers and import bra accessories from China and supply it to Indian bra manufacturers. We import a wide array of products including hook and eye bands, straps, elastics, seamless bra, Embroidered lace, ribbon bows, hangars and even mannequins,” said Ankit. He added that though the company commenced operations 10 years ago, they were handling the Kotak Overseas agency and entered the import sector only much later. In 2010 they dissolved the alliance with Kotak Overseas and became full fledged importers. The reason behind this was that it was becoming too hectic to handle both businesses, so they decided to focus on one.

Sumeet Pahwa, Creative Covers Pvt. Ltd.

Ankit Mehra (Rocky) with his colleague Neeraj at their stall

The latter half of the first day saw another seminar on Winning with Today’s Lingerie Consumer where speakers Andrew Evans, MD for Invista India & Sri Lanka and Avinash Chandra, Marketing Head for Invista, discussed the most perplexing issues that the intimate wear industry confronts on a daily basis. “Consumers want to keep their wardrobe as per the latest fashion trends and are very particular about what they wear. Word of mouth is an important driver of the category as consumers discuss trends among family and friends. Moreover, in today’s economy, quality at the right price is an important factor to create value for consumers and earn their loyalty”, said Evans.

Commenting further on the novel initiative he said, “We are proud to be a part of this unique initiative taken by IAAI. Galleria Intima, being the country’s first and only sourcing event for the intimate apparel segment, gave us a great opportunity to interact with the various stakeholders of the industry.” He opined that the Fair helped the group in reiterating its commitment towards the segment and helped it in showcasing product innovation to relevant players.

“Galleria Intima was conceptualized to provide an all-encompassing experience of sourcing while combining domestic and international elements. Exemplifying a unique business platform, the fair possess and facilitate innate characteristics of networking, evolving and sourcing,” said Yusuf Dohadwaala, Organizer, Galleria Intima. According to all participants and visitors, the objective was attained.

Nicky Mohanani, founder Nicky Enterprises, a company which set foot in the industry in the year 2006 and supplies imported accessories to a prominent list of clients including Bodycare, Groversons, Juliet, etc., said, “The Fair has been good and as it is the first time such an event has taken place we are happy with the response.”

The second day of the Fair also had two seminars on the agenda. The first, Nature’s Skin Soft Fibres for Intimate Apparel, saw Speakers Ritesh Khandelwal, VP, Global Business Development for Birla Cellulose and Mahuya Chaturvedi, VP, Global Branding & Communication for Grasim Industries discussing the benefits of soft fibres in intimate wear and their plans of expansion into Birla Modal as the specialty fibre for the next fashion generation.

The second seminar, Gaining Competitive Edge – Real Time 3D Digital Fitting and Concept Approval had Julia Collier Shaw, Director of

Julia Collier Shaw, Director of Global Enablement at Optitex (third from left), Ran A. Kremer, MD, Optitex India Pvt. Ltd. with other team members during the exhibition

(L-R) Sumit Tripathy, Asst. G.M. ( Sales & Mktng.) with Arata Ueda, Manager-Sales & Marketing, Juki India Pvt. Ltd at their stall

Rajesh Ganatra, Pooja Fashions posing for Team Perfect Sourcing

Nicky Mohnani, Founder, Nicky Enterprises

(L-R) Racha Khanijow, MD with Vinit Kamrati, MD, Vanity Export Co., Ltd. Thailand

(L-R) Dinesh Lakra, MD, Lakra Industries Ltd. posing with Ram Sareen, Founder & CEO, Tukatech for Team Perfect Sourcing

Abhay Chhapia, CEO, Abhay Group with his son at their stall

S. Balakrishnan (center), Mktng. Consultant, Trylo Industries with his colleagues

(L-R) Avinash Mane, Technical Customer Service - South Asia, Bhargavi Rao, Merchandiser and T. Murugan, GM, Sales & Mktng., Lenzing AG

Triloknath K.P., DGM Sales & Ops. (Trade) from Massai Trades Pvt. Ltd.



Global Enablement at OptiTex, USA speaking on the use of advanced design solutions and 3D visualization in achieving a better, precise and economical design and production environment. The presentation also showcased the latest projects OptiTex is involved with and the implementation of 3D fit solutions in intimate wear.

Visitors that included sourcing head of many liaison offices like Carrefour, Fruit of the Loom, Mas Holdings reciprocated their satisfaction over the Fair as it provided them a platform where they could see latest innovations in the industry at a single place. Fuzail Topiwala of Gujarat Industries commented, “The Fair was very good, taking into account that it was for the first time and will benefit the industry. It was a nice platform to meet everybody from the industry at one single point which is not possible on a regular basis.”

Triloknath K.P. – DGM Sales and Operations, Mas Holdings for Amante said, “It is a good Fair, though we had expected more participants but it is not an issue as this was the first edition. The Fair is very useful for the industry as it helps in remaining updated about current scenario and future prospects of the industry and the latest advancements.”

On the technology front, Juki participated at the show with its latest range of machines. The company displayed its Zigzag machine, Direct Drive machines, Flat Lock machines for elastic attachment, Dry head machine, etc. “Intimate wear products cannot go into washing after sewing hence it requires spotless levels of cleanliness and stitching. This is the concept we are displaying through dry head machines,” revealed Sumit Tripathy, Assistant GM, Juki India Pvt Ltd.

He added that every top manufacturer wants to produce high quality garments which will have zero rejection figures. Also, the type of fabrics that are evolving nowadays cannot withstand oil stands and this is where dry head machines come handy as it eliminates staining. “We have locked the areas from where oil leaks, hence the machines are completely dry. We are the only company which also offers semi dry machines and are getting a good response and genuine enquiries,” asserted Arata ueda, Manager Sales and Marketing Juki India Pvt Ltd. They reported an average response at the show. Overall Galleria Intima was a good experience for both visitors and exhibitors and added value to the intimate apparel industry.

hitco Electricals Pvt. ltd. – Revamping the Indian Bra industrySet to launch Padded Bra cup Molding Machine

Grasim Industries ltd. – Promoting Green Fashion on a Wide Scale

Grasim Industries Ltd. for Birla Cellulose is the Aditya Birla Group’s umbrella brand for their range of cellulosic fibres. The fibres comprise of Birla Viscose, Birla Viscose Plus, Birla Modal and Birla Excel. Rajeev Gopal, CMO,

Global Marketing, who was present at the event talked about the specialty of the fibres the company offers for the segment. “Birla Cellulose is one of the largest viscose techno fibre producer and marketer. Our current capacity is 0.7 million tonnes which is expected to grow to 1.1 million tonnes in the near future,” mentioned Rajeev. The company is set to expand to Indonesia and Turkey and is focussing on specialty and value added products. “We are now providing high quality and high value fibres to the industry. I think the industry is ready for it as the Indian economy is growing and consumers are becoming more aware,” concluded Rajeev.

Eco Tech Software Pvt. ltd. – Providing technology boost to the industry

help and services are available at hand which was not possible earlier. He also added that these machines do not need skilled labour to operate. Commenting on the Fair he said, “The response has been good and we have got serious enquiries. Juliet has ordered a few machines and we have already supplied 15 machines to Bodycare. The market is booming and everyone is interested.”



Hitco Electricals promises its customer base heaters with innovative design, technology, cost efficiency and

optimum performance. The company, founded in 1976, is one of the leading heater manufacturers to get an ISO 9001:2008 certification. The company displayed their bra cup molding machine at the Fair. Team Perfect Sourcing conversed with Sanjeev Joshi, ED, who shares a deeper insight into the functionality of the machines.

“We are planning to come up with padded bra cup moulding machines in the next two months along with

the one displayed here,” said Sanjeev. He also mentioned that earlier, this technology was imported from China, as there were no manufacturers in the country. The company has joined the garment industry recently. On being asked how the idea of entering this niche area fructified, Sanjeev said, “We have been manufacturing heaters for a long time and have a huge setup in Noida. The idea was that even the garment industry uses machines, so why not cater to them as well.” The machines that the company is offering are very cost effective as they come in the range of Rs 2.5 Lakh as compared to machines which are imported, which cost around Rs 25 Lakh, that too with the same quality. The added advantage is that the spare parts, technical

Since its inception in 1994, Ecotech has helped leading apparel manufacturers to implement ERP solutions

that streamline their business and integrate information across departments and locations. The software helps the manufacturers to execute complex processes involving software, technologies, disciplines and products that quickly places their business on the fast track. Team Perfect Sourcing met up with A.P.S Velu, Director Business Development and A.P.S Kavya, Executive Business Development at the Fair where they shared in depth the working of their software called Stage.

“Stage has everything perfectly integrated and does not need any add on packages,” said A.P.S Kavya. Stage software can either be purchased or subscribed to monthly. The software includes costing and budgeting, order entry, process planning, purchase, inventory, packing documentation, T&A accounts, sampling, production planning and MIS reporting. Adding to the advantages of Stage A.P.S Kavya said, “Stage single-handedly manages all operation and makes it easy for the client. It saves a lot of time, effort and gives better control.”

On being asked how the software differed from the others, A.P.S Velu said, “The main difference between Stage and other ERP software is that we are an end to end solution, covering all aspects from costing to shipping.” The

software also uses barcodes for the bundle system which obviates the recording of bundle tickets manually and gives accurate production figures and helps in comparing the speed of the lines. Apart from this, if an order requires washing and dyeing, then loading time, operation hours etc. can also be recorded. Due to its high efficiency the company boasts of an impressive list of clients including leading apparel exporters in India and some projects in Indonesia as well.

(L-R) - Sanjeev Joshi, ED, with Vikas Verma, MD, Hitco Electricals Pvt. Ltd. during the exhibition

A.P.S. Velu, Director - Business Development, Eco Tech Software Pvt. Ltd.


The event kicked off with a welcome speech by Lalit Gulati, President, AEMA also MD, Modelema Exports. Gulati welcomed everyone

present, honoured the stalwarts and highlighted the many achievements of AEMA. “It’s really hard to believe that AEMA now turns to 30th year with its aims and objectives unchallenged. It gives me immense pride for AEMA has members not only from Delhi or Delhi-NCR but from other Northern states also. Moreover, I would like to profess my admiration for the guidance and unstinted services extended to AEMA by its stalwarts,” spoke Gulati.

Gulati also welcomed other members of the group who have given constant support to the organization, “My heartiest salute goes to all the Founder members, EC members and other well wishers of this Association. Without

Apparel Exporters and Manufacturers Association celebrates 30 years of GloryFelicitates Industry Stalwarts on the occasion

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Formed for the benefit of apparel exporters in the year 1982, Apparel Exporters and manufacturers Association (AEMA), a stalwart body of garment exporters, completed its tenure of thirty years. The occasion was celebrated in a grand manner at New Delhi in the presence of leading apparel exporters and association members. More than 140 representatives of the industry and members of the association gathered to celebrate the occasion.

their efforts, cooperation and guidance, AEMA would not have reached this 30th Year with its glory, aims and objectives unchallenged.” He also mentioned how proud he was to be a part of the group and said he considered himself fortunate to first be a member and now the President of the group.

The President, in a bout of nostalgia, remembered the former Secretary Shri Majumdar who steered AEMA with his spontaneous capability as Executive Secretary. “His contributions to AEMA are really remarkable and his services will always be remembered” he added.

The speech was followed by the lighting of the lamps and honouring the stalwarts by presenting each of them with a memento. BP Singh, MD, Singh Export Corporation; SS Grewal, Hari Kapoor, MD, Allied Industries; Praveen Nayyar, MD, Dimple Creation; PD Sharma and Vinod Chopra were among some of the

awardees at the occasion.The first official souvenir of AEMA

was released which contains the list present EC members, list of AEMA’s members, photographs of the occasion, advertisements by various well-wishers and other important Information. The programme was followed by a cocktail and dinner party. Later, Gulati thanked everyone present and said, “I wish all my colleagues, members, well wishers and their family members all the very best. I am also grateful to all who have supported and guided us to make this Anniversary celebration a great success.”

AEMA has been actively supporting AEPC as a core force for all its ventures viz., fairs, seminars, exhibitions or representations, meetings with ministries and other competent authorities for the betterment and smooth functioning of the Apparel Export Community in India. Apart from this, AEMA has always been in the lead to support the training of labour through the Institution of Apparel Management, Apparel Training & Design Centres which also impart training in Merchandising & Fashion Segments across the country. The association is currently supporting AEPC for their new baby DISHA – a project for Common Compliance Codes for the apparel Industry.

Lalit Gulati, President, AEMA

Lalit Gulati inaugrating

the event by lightning the

lamp with fellow members


India Market Days is a project approved by Ministry of Textiles and is funded under the Market Access Initiative (MAI) Scheme of Ministry of Commerce & Industry,

Government of India for inviting overseas buyers and buying agents under Reverse BSM. AEPC organized the event at apparel house recently. The event was inaugurated by Sudhir Sekhri, Chairman Export Promotion along with HKL Magu and Pritam Goel who were also present at the event. While welcoming the buyers Sekhri stated that, “The event will help the garment exporters find the right partners for their business. Through this we are hopeful that the apparel exporters will generate good business deals with buyers from the continent countries.”

The next version of the event is scheduled in November. The current event saw show-room holders exhibiting their

AEPc TAPS NEW WAyS To TAcKlE ToUGh TIMESorganizes Market Week at Apparel house, Signs MoU with Israel Export and International cooperation Institute

latest collections to buyers from countries like Greece, Australia, Botswana, South Africa, Ecuador and USA to boost the country’s exports. Leading buying agents present included UCB, Numero Uno, Reebok, Li & Fung, Texport India Inc, to name a few.

CHAIRMAN AEPC SIGNS A MOU WITH ISRAEL EXPORT AND INTERNATIONAL COOPERATION INSTITUTESECRETARYTEXTILESINAUGURATESBUYERSELLERMEET IN TEL AVIV, ISRAEL

AEPC organized a buyer seller meet in Tel Aviv, Israel, to target the Miidle East Export Market, from 5th – 6th September 2012. The event was the first to be organized in the Middle East on such a large scale. The event was inaugurated by Secretary (Textiles), Government of India Smt. Kiran Dhingra, in Tel Aviv

Exhibition Centre. Dr A. Sakthivel, Chairman AEPC, on the occasion said, “Israel is an important market and with the India- Israel FTA in the anvil, we are hopeful of increased trade between the two countries. AEPC for the first time is organizing a Buyer Seller Meet in Israel to capture not only the Israel apparel market but also US $ 11 billion apparel market of Middle East region."

The two day event saw participation from over 140 buyers including leading retail chains like Delta, Fox, Co op Israel, Matimli and Crazy line. Dr Yuli Tamir, President, Shenker College of Engineering & Design. Apart from this many leading fashion designers were also present on the occasion.

With the aim to explore areas of cooperation between Israel and India in the areas of Textiles and Apparel, a high level delegation was also mounted at the event. To take the undertaking ahead Chairman AEPC signed a MoU with Israel Export and International Cooperation Institute. Mr Ramzi Gabby, Chairman of IEICI signed on behalf of the Institute. The MoU is aimed towards enhancing trade and economic relation by expanding business and cooperation in the sphere of clothing & fashion industries, innovative technologies and possible solutions for the textile industry. Besides the deal is expected to work towards facilitating linkages of appropriate organizations that can contribute in furthering apparel trade.

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ISRAEL’SRMGIMPORTS:

► (It can be seen from the above exports figures that there is a tremendous potential of export of readymade garments to Israel)

Smt. Kiran Dhingra, Secy Textiles at the Inauguration of Buyer Seller Meet in Israel

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