3. Kriplon Synthetics Pvt. Ltd.
P 118, Rajlaxmi Commercial Complex, Kalher Village,
Kalher, Bhiwandi, Thane .
127, Sanjay Building, 5-B, Mittal Estate, Andheri (E), Mumbai - 400059, Maharashtra, India
(022) 28505452, 28501686, 28505983 (022) 28504142
Contact Person : Mr. Satish Kriplani : 9323646986
Email : ramdevsyntheties@rediffmail.com
ADVT.
4. Ratan GIitter Industries Limited
PURE SILVER ST YARN
PURE SILVER "M" TYPE YARN
Polyester Metallized Pure Silver Yarn, highly used on Schiffli Embroidery
Machines and Computerized Embroidery Machines. Also used in hand
embroideries. It is widely used for tapestry and made-ups.
We manufacture Pure Silver “M” type metallic yarn for making ST type rounded pure
silver yarn. Our range of product includes non-resistant and resistant yarns to dyeing
and finishing procedures. Pure Silver M Type Metallic Yarn produced in 12 Micron and
24 Micron in different cuts of 1/69, 1/85, 1/100. These are capable of running on high
speed weaving, knitting and circular knitting machine.
Pure Silver MX Type Metallic Yarn produced in 12 Micron and 24 Micron in different cuts of
1/69, 1/85, 1/100. The core yarn is Polyester or Nylon. These yarns are capable of running on
high speed weaving, knitting and circular knitting machine
PURE SILVER "MX" TYPE YARN
Along with pure Silver Metallic Yarn, we also produce ST and
Zebra Type Yarns in fluorescent, rainbow and Several other
Colours. These are hightly used in computerized embroidery
machines, circular Knitting and weaving Machines.
METALLIC YARN
5. In the recent reshuffle of the Union Cabinet, the burden on Shri
Anand Sharma, Hon’ble Minister of Commerce and Industry has
been lightened by transferring the additional portfolio of textiles,
which he held as an interim arrangement.
Dr. K.S. Rao has taken over as the Hon’ble Minister of Textiles as of
June 19, 2013. TVC is indeed very happy and delighted to convey
its best wishes to the new minister.
Within a short span of ten days after he was sworn in, the Hon’ble
Minister made it a point to interact with all the stakeholders of the
industry. The addresses delivered by him at such meetings make it
abundantly clear that the Hon’ble Minister is bound to be
successful in putting back the textile industry on the fast track,
despite sluggish economic climate in the USA and EU, two major
importers of textiles.
Sooner or later, two major issues will have to be tackled by the
Union Ministry of Textiles, under the guidance of the Hon’ble
Minister.
One issue is how to promote exports of man-made fibre textiles
and clothing.
At the global level, man-made fibres, with a share of 60% reign in
the consumption basket of fibres for the manufacture of textiles
and clothing. Despite such a strong preference, man-made fibre
textiles and clothing accounted for only 31 % in the Indian export
basket, while cotton textiles and clothing accounted for the lion’s
share of 69 % in 2012-2013[April – February]
Grand Welcome to the new Union Minister of Textiles
When cotton and man-made fibres are spun on the same system
of spinning yarn, when the technology of weaving and processing is
same, when the cost of labour, and power is same at a given textile
centre and when the cost of finance is same everywhere, how
come cotton textiles and clothing march over man-made textiles
and clothing in the international market?
The answer is simple. Cotton textile industry gets its raw materials
at or below the international price. Unfortunately, the man-made
textile industry by and large is not getting its inputs at international
prices. The international price is the price at which our competitors
in other countries get raw materials in their factories.
Various strategies can be thought of to bring domestic prices in
alignment with international prices, such as sector-specific scheme
for abolition of excise and customs duties on inputs of man-made
fibres, withdrawal of excise duty on man-made fibres, retention
price scheme etc.
The second issue is export policies for different segments of the
textile value chain.
Once India has accepted the policy of liberalization, the export
policy has to be the same for all segments. In other words, the
policy set-up cannot be dismantled as per demands of individual
segments. The only solution is increased production throughout
the value chain. Only in a real crisis situation, a different line of
action can be charted.
The industry is in the safe hands of the new Hon’ble Minister who
considers growth and development of the textile industry as his
mission.
Dr. Kavuru Sambasiva Rao, Union Minister for Textiles
7. Editor & Publisher
Ms. Jigna Shah
Chief – In – Editor
Ms. Rajul J. Shah
INDUSTRY
Mr. Devchand Chheda – City Editor - Vyapar ( Janmabhumi Group)
Mr. Manohar Samuel- Joint President, Birla Cellulose, Grasim Industries
Mr. Aditya Biyani- Marketing Director, Damodar Group
Dr. M. K. Talukdar – VP, Kusumgar Corporates
Mr. Ajay Sharma – GM- RSWM (LNJ bhilwara group)
Check Men’s wear colour Forecast : Fall - Winter 2013-14
Colour Forecast
Pic. Courtesy Fall 2013 Prada Runway
CONSULTANT / ASSOCIATION
Mr. Avinash Mayekar, MD, Suvin Advisor Pvt. Ltd.
Mr. Shivram Krishnan, Senior Textile Advisor
Mr. G. Benerjee, Management & Industrial Consultant
Mr. Uttam Jain, Director- PDEXCIL; VP of Hindustan chamber of commerce
Mr. Jaykrishna Pathak, President, Bombay Yarn Merchant Association & Exchange Ltd.
Mr. Shiv Kanodia- Sec General, Bharat Merchant Chamber
EDUCATION / RESEARCH
Mr. B.V. Doctor - HOD knitting, SASMIRA ,
Dr. Ela Dedhia- Associate Professor, Nirmala Niketan College
Dr. Mangesh D. Teli – Professor, Ex.HOD & Dean ICT (former UDCT) ,
Dr. S.K. Chattopadhyay,Principal Scientist & Head MPD, CIRCOT
Dr. Rajan Nachane, Retired Scientist, CIRCOT
Editorial Advisor
Shri V.Y. Tamhane
Advertising & Marketing
Md. Tanweer
Creative Head
Ms. Rajul J. Shah
Graphic Designer
Interactive Technology
7
National News
8 & 9
Government News
Letter to PM & Textile Committee Prs Rls
Textile Ministry News & BTRA News
9 & 10
Corporate News
ATE & RIETER, BIRLA & LENZING
12
Skill Gap Analysis
Emerging Trends in Skill requirement
14
Fashion Forecast
Men's Colour Forecast: Fall- Winter 2013-14
16
College Focus: Parsons Mumbai
CMAI- National Garment Fair Report
18
Cover Story: Need for Credit Rating
Interview with India Rating / Fitch, CRISIL, CARE
22
Corporate Profile: Bombay Dyeing
Interview with Mr. Durgesh Mehta, Jt. MD & CFO
26
Fibre Focus
Birla Cellulose (Reprinted)
30
Post Show Report : Fabric & Accessories 2013
AEPC Press Release
31
Post Event Report
CIRCOT Pre Commercialization Workshop
SDC Conference Report
33
Yarn Focus
Interview with Everflow Petrofil &
Collaboration: Suvin Advisor &
Wadia Techno
35
Spinning of Banana Fibres on
CIRCOT – Phoenix Charka
36
Technical Textile Focus
Intelligent Textile, Smart Fabrics
41
Fabric Focus
Electrolyte- Free Dyeing with Cationic
Reactive Dyes
44
Fabric Report: Prices of Grey Fabric
47
Garment Focus
Changing Trends of Leg wear in
Women's Wardrobe
51
Retail Focus
Bubble Blast Theory of Consumer
Acceptance
54
Textile Machinery
Indian Textile Engineering
Industry today
57
Environment Focus
Role of Carbon footprint in
Textile & Apparel Industry
60
Self Management
Managing career, life & Education,
A skill based Approach
64
Pre Show Report
Screen Print India 2013
TechTextil 2013
66
Tradeshow Details
EDITORIAL TEAM
9. DyeingunitsfeedRiverCauverywitheffluents
June, M.K. Ananth for The Hindu
Effluents being discharged into River Cauvery at
Pallipalayam.— Photo: M. K. Ananth
With the water from Mettur dam hardly reaching River
Cauvery in Namakkal district, Tamil Nadu, the effluents discharged
from the unauthorised dyeing units in Pallipalayam and
Komarapalayam into the river has become its only source of water.
“Anyone crossing the bridge that connects Erode and
Pallipalayam can easily see the extent of pollution caused to the
river”, says environmental activist R.K. Madeshwaran. Pallipalayam
and Komarapalayam towns developed primarily because of the
large number of power looms, handlooms and textile processing
units such as dyeing units. “But the people are suffering without
water and continuing pollution is adding to their woes”, he adds.
People living in villages in and around the two towns say that
they are unable to use water from open wells and bore wells due to
the large scale pollution that has changed the colour of the water.
Evengroundwaterintheareaispolluted:residents
“The impact was not so high when water was flowing in the
river as the dark coloured effluents were washed away by the force
of the water”, says K. Raja of Indra Nagar in Pallipalayam. About
three months ago the district administration made an
announcement through revenue department officials, asking
persons running dyeing units in Pallipalayam, Komarapalayam and
nearby areas to stop operation of the units, in a bid to put an end to
large scale discharge of effluents into the river – till water released
from Mettur Dam became normal. A few units were also evicted for
not taking the announcementseriously.
On April 19, the Tamil Nadu Pollution Control Board team led
by District Environmental Engineer, M. Murugan, raided an illegal
dyeing unit in an agricultural field at Kokarayanpettai near
Pallipalayam. The landlord opened fire on them but they luckily
escaped. The police registered a case and arrested the accused.
Since then, the TNPCB has not initiated major action against any
polluting dyeing units.
S. Saravanan of the Association of People’s Welfare
Organisations in Komarapalayam says that the dry river has made it
easy to identify illegal dyeing units as they can easily follow the path
through which the effluent flows into River Cauvery.
Solar lanterns to be given to weavers
Bhubaneshwar, June 10, The Hindu
In a bid to facilitate illuminated workplace, the State
government has decided to supply 10,072 units of solar lanterns to
handloom weavers during 2013-14. Handloom industry, second
largest cottage industry next to agriculture in the State, employs 1.03
lakh weavers.
As per Handloom Census-2009, there are 40683 weaver
households comprising 103158 weavers and allied workers
engaged in the profession. The government plans to cover 10,000
families every year.
The solar lantern designed by Odisha Renewable Energy
Development Agency (OREDA) would be given to each weaver
family. However, the government has made a priority list of
beneficiaries. Weavers working in areas which are yet to be
connected with electricity or suffering from low voltage problems
would be given preferences. Similarly, weavers belonging to weaker
section would be assisted on priority basis.
Directorate of textiles and handloom will be nodal agency for
distribution of solar lanterns. According to a top official, the
process of weaving involves handling of fine yarn with colour of
various shades continuously for longer period. Highest 2,900
solar lanterns will be distributed in Bargarh district and Sonepur
has second largest share with 1,250 lanterns.
Indian Govt may further relax FDI rules in
MBRT: Minister
June 17, Fibre to Fashion
The Govt of India may further relax or simplify guidelines for
foreign direct investment (FDI) in multi-brand retail trading (MBRT),
Minister of Commerce and Industry and Textiles, Anand Sharma,
has said.
The Indian Govt opened doors for multi-brand retailers around
nine months ago, allowing 51 percent investment through FDI
route, but the policy has not received expected response from
foreign retailers, who have so far stayed away. Last week, the
Government issued some clarifications related to 30% sourcing and
back-end infrastructure, but these too failed to generate any positive
response from foreign retailers.
If the foreign retailers have any other issues in mind, the Indian
Govt is receptive and it would further bring clarity to the guidelines,
because the objective of the policy is to attract FDI, Mr. Anand
Sharma told reporters. Mr. Sharma said, he would be chairing a
Retail Round Table on June 27, which would involve participation of
CEOs of Indian companies as well as foreign investors. The Round
Table would seek views of the participants on issues related to
implementation of the FDI Policy and address their concerns, if any.
The news of this conferenceis not yet out.
The Minister said that any proposal received by the Govt for FDI in
MDRT would be fast-tracked.
7Textile Value Chain | July -Sept 2013
NATIONAL NEWS
10. LBT IN MAHARASHTRA – ONE MORE
COMPLICATED TAX WINDOW, CAUSE OF BIG
OBSTACLE FOR INVESTMENTS
Please refer to your meeting with
Hiromasa Yonekura, chairman of Japan
India Business Leadership Forum on
28th May 2013, who pointed to you
the differences in tax regimes of each
state and the complicated tax structure
were big obstacles for investments in
India.
You were candid in acknowledging
that the state governments belonging
to non-UPA parties were not in favour
of surrendering their tax power in
favour of the GST. Your ambitious vision of tax reforms & tax
simplifications could not be implemented due to opposition from other
political parties. Well, in reality, you will be shocked to note that your flag
ship state ‘Maharashtra’, ruled by Congress, is working contrary to your
vision. It is implementing LBT, in place of Octroi, which over a period of
time, every country and every other state in India has abolished. Your
UPA partners, opposition and the masses are against it, but your party
CM, alone, is adamant on LBTs’ implementation. The Maharashtrian’s
plea, of generating additional revenue, if required, to be collected along
with VAT, has fallen on deaf ears. LBT is obnoxious & creates another tax
collection authority leading to localized, unchecked corruption, which
will add to inflation, deter investments, and is anti - people.
The Hon’ble Chief Minister has been misguided by the legislative
machinery of the state by reasoning that autonomy of municipal
corporations will end, if single window tax, VAT is enlarged to abolish
Octroi or LBT.
Truth – Other states have seamlessly adopted single window tax
structure without compromising on autonomy. There is very thin line
between autonomy and factionalism. Such factionalism will only
weaken our country. Dividing our country religion, culture, region,
language, etc. will eventually lead India nowhere.
Truth – Your talks of Tax reforms & simplification will take a major hit
and Maharashtra will further fall from 2nd position to lower position.
We have been begging to all, local MLA’s, MP’s, Smt. Sonia Gandhi,
Shri Rahul Gandhi, Sri P. Chidambaram, but there is no response.
Democratic interaction, discussions with concerned, are very basis of
democracy. It is heartening to note that the letters sent to various
government functionaries are not even been acknowledged.
It’s a sorry state of affair and the Foreign Investors, when made
aware of this ground reality will only confirm the gradual deterioration
of Maharashtra. We request you to kindly look into this matter, on
merits and request Maharashtra Government to withdraw octroi & do
not impose LBT, in its place. If there is revenue shortfall, please increase
in VAT. By adding LBT window, you are adding fuel to fire and
complications will lead to further corruption. The people of
Maharashtra will never forgive this final nail in coffin, for centuries to
come.
We propose to take this issue to numerous Foreign Investors,
global organizations at various forums.
st
Excerpts of Letter dated 1 July, 2013 from
Shri Shiv Kanodia, Honorary General Secretary, Bharat Merchants'Chamber ( BMC), Mumbai to
Sri (Dr.) Manmohan Singh ji, The Hon'ble Prime Minister of India
Textiles Committee (TC), a statutory body, under the Ministry
of Textiles, was set up to promote quality in Textile Trade & Industry.
TC provide services like Textiles Testing & Technical Services, Quality
Appraisal of textiles & Export Promotion, Consultancy on ISO 17025
(QMS), 9000, ISO 14000, SA 8000, and Training to industrial &
Educational institutes, through its vast network of 30 regional offices
and 16 Laboratories scattered all over major textile clusters of India.
All 16 labs of TC are committed to the timely disposal of testing
activities and also maintain the confidentiality of test results.
Wherever required, the labs invite the customers to witness tests
and have indisputably demonstrated the repeatability of test results. 9
of TC Labs are notified by DGFT for testing of import consignment
received from different customs. TCs labs, in order to become more
efficient in its routine activities, have initiated a pass book system wherein
any customer can deposit certain amount as advance payment
depending upon their volume of transactions. Test charges of a pass book
holder will be deducted as soon as tests are over and the test report will
be automatically forwarded to respective customs. This will reduce the
effort of customers to wait till the test is over to ascertain and make the
payment for further action.
In order to become more transparent, TC labs, in its routine
activities are implementing Laboratory Information Management System
(LIMS). TC’s Mumbai lab has already implemented LIMS and is now
working on it. In this system samples received from any source is
registered on LIMS. Then the sample is taken for testing and for further
action. Status of samples at any stage can be monitored by designated
officials. Along with this, lab has also initiated a digital display of information
related to receipt of sample, status of sample such as testing, dispatch,
payment, etc. This information is helpful to the customer to know the
status of the sample. This display system was inaugurated by Hon’ble
Chairman of Textiles Committee, Shri S.P. Oswal on 8th May ’13 at
Textiles Committee’s Sample Counter.
While inaugurating the new facility, Shri S.P oswal appreciated the
efforts taken by the TC. He urged it to be more customer friendly and
linking of LIMS information on to TC website. The Secretary of TC, Dr.P.
Nayak and other members of the Committee also graced the occasion.
Pic: Hon'ble Chairman of Textiles Committee
Shri S P Oswal inaugurating the LIMS Display facility
LETTER TO GOVERNMENT
ONLINE QUALITY STATUS REPORT THROUGH LIMS
BY TEXTILE COMMITTEE
Pic: Sri (Dr.) Manmohan Singh ji,
The Hon'ble PM of India
8 Textile Value Chain | July -Sept 2013
11. ShriAnandSharmaLaunches21NewTextileParks
The ex- Union Minister for Commerce, Industry and Textiles, Shri
Anand Sharma, before finishing his tenure, launched 21 New Textile
Parks approved under Scheme for Integrated Textile Parks (SITP).
The SITP’s have been instrumental in development of wide range of
models for green field clusters from a 1000 acre FDI driven
integrated cluster, to a 100 acre powerloom cluster and a 20 acre
handloom cluster. Under the scheme, 61 parks have been
sanctioned – 40 projects were started in the 11th Five Year Plan and
another 21 projects are to be implemented in the 12th Five Year
Plan. Out of the 40 parks sanctioned earlier, a total of 25 Parks are
already operational. Most of the balance Parks are expected to be
completed during this financial year. The estimated employment
generation is over 10 lakh persons with total estimated investment
of Rs. 27, 562 crore.
Shri Sharma also released a coffee table book on SITPs. The
book encapsulates the broad features of various ITPs set up all over
India and is a ready reference for the same. The book gives a brief
physical and pictorial status of each ongoing Park approved under
SITP. He also released a short film on SITP and visited a photo
exhibition that was created to mark the event.
Out of the 21 new parks, six are in Maharashtra, four in
Rajasthan, two each in Andhra Pradesh and Tamil Nadu and one
each in Uttar Pradesh, West Bengal, Tripura, Karnataka, Gujarat,
Himachal Pradesh and Jammu & Kashmir.
In this year’s budget speech, the Finance Minister announced an
additional amount of upto Rs. 10 crores per park for setting up
apparel manufacturing units for the projects under the SITP.
Necessary action is being taken for implementing the
announcement.
HandloomSilkIndustryinAssam
The Govt is aware that silk handloom industry in Assam is passing
through a difficult phase. Assam does not produce required quantity
of mulberry silk as per the demand of the its consumers. Mulberry
silk yarn is supplied by the traders from other parts of the country,
due to which consumers have to purchase yarn at higher rates from
the open market.
In Assam, few silk fabric traders have been doing business by
producing the Assamese dress materials, particularly Mekhela-
Chadar of mulberry silk at the weaving units outside the State with
Assamese traditional patterns and designs. As a result, the local
producers have protested for importing such hand woven silk
fabrics from outside the State. To address this issue, the state Govt
has constituted a Committee to look into their grievances.
In order to promote Mulberry, Eri and Muga silk production in
Assam, Govt through Central Silk Board is implementing a centrally
sponsored scheme viz “Catalytic Development Programme”
(CDP) in collaboration with State Sericulture Department of Assam.
Under this scheme, financial assistance is provided to the
stakeholders of silk industry through the State Sericulture Dept. The
components under CDP envisage development and expansion of
host plant, support for seed production, development of farm and
post cocoon infrastructure, up-gradation of reeling and processing
technologies in silk, enterprise development programme, support
for extension and publicity etc. Rs. 10319.11 lakh Central assistance
has been provided to Assam under CDP during the XI Plan period
for the development of silk industry, including mulberry, eri & muga.
To increase the number of trained qualified weavers, a number of
skill upgradation programmes have been implemented through
various schemes like cluster projects and group approach projects
under Integrated Handlooms Development Scheme (IHDS).
Besides, the State Govt has been imparting training to the weavers
through 102 Handloom Training Centres and 4 Handloom Training
Institutes every year.
Central Silk Board, Ministry of Textiles is implementing Silk Mark
scheme through the Silk Mark Organization of India for popularizing
the products made of pure silk to protect the interest of consumers.
Silk Mark is a quality assurance label attached to the products made
of pure silk and is applicable to all the silk products made of pure silk
covering all varieties of silk viz. Mulberry and Vanya (Tasar, Eri &
Mugs) silks. Under the Silk Mark Scheme, there are 177 authorized
users in NE region, including Assam, who uses Silk Mark labels.
Further, Muga Silk of Assam, has been registered under
Geographical Indications of Goods (Registration & Protection) Act,
1999.
BTRA
r e a c h e d a
Memorandum of
Understanding
( M o U ) w i t h
CSIR- Central
Road Research
Institute (CRRI),
New Delhi on
22nd May, 2013.
A signing-in ceremony took place at BTRA that is attended by Dr. S.
Gangopadhyay, Director, CSIR-CRRI and Dr. A.N. Desai, Director,
BTRA.
MoU on Geotextiles between BTRA and CSIR-CRRI
The purpose of this MOU is to create a framework for
collaboration between CSIR-CRRI and BTRA with the following
objectives.
I) To establish close linkage and functional coordination
between CSIR-CRRI and BTRA.
ii) To work collectively for the sector in Geosynthetics
particularly Geotextiles for road and transportation sector.
iii) Mutual sharing of resources to accelerate the use of
Geotextiles in road construction and maintenance including
usage of library at both the end.
iv) Submission of the joint proposals to MORTH/NRRDA on
comprehensive evaluation of Geotextiles.
9Textile Value Chain | July -Sept 2013
News from the Textile Ministry
12. 10 Textile Value Chain | July -Sept 2013
Rieter is a leading supplier on the world market for textile
machinery and components used in short staple fiber spinning.
Based in Winterthur (Switzerland), the company develops and
manufactures systems, machinery and technology components
used to convert natural and manmade fibers and their blends into
yarns. Rieter is the only supplier worldwide to cover spinning
preparation processes as well as all four final spinning processes
currently established on the market. Rieter has 18 manufacturing
locations in 10 countries.
Texgiulia becomes Com4®rotor Yarn Licensee
The Italian company, Texgiulia, is committed to yarn quality spun
on Rieter rotor machines type R 60. In order to optimally promote
the yarns, the company decided to become a Rieter yarn licensee
for rotor yarns. The ceremonial presentation of the Com4®rotor
certificate took place mid-March 2013 at the company’s
headquarters in north Italian Rovellasca-Como.
The fully-integrated open-end spinning plant Texgiulia is part of
the Italian Gabel Group and is one of the leading manufacturers of
bedding and home textiles in Italy. The company generates its
complete added value domestically – starting from yarn production
up to the product sales through its own distribution network.
First and foremost, Texgiulia produces for its own requirements.
By the acquisition of further Rieter R 60 rotor spinning machines, the
A little over a year after Zimmer tied-up with A.T.E. for the
marketing and sale of Zimmerdigital printing machines in India,
Zimmer Austria has also entrusted A.T.E. with the marketing, sales
and after sales service of its entire range of printing machinery
including rotary screen printing and flat-bedscreen printing
machines.
Zimmer, the world leader in printing technology, manufacturers a
complete range of machinery for textile and carpet finishing
covering digital printing systems, flat screen and rotary screen
printing, coating, steaming, washing, and drying in its plants situated
at Klagenfurt and Kufstein.
Zimmer rotary
screen printing,
Rotascreen, is
equipped with a
m a g n e t i c
squeegee system
and is modularly
constructed, thus
allowing for a
wide spectrum of
a p p l i c a t i o n s .
Rotascreen enables top quality results with single or multi-colour
printing on different substrates such as home textiles, fashion
fabrics, automotive, and other materials.
Zimmer flat bed
m a c h i n e ,
Magnoprint, is a well
proven flat bed screen
printing machine
successful world wide.
Its magnetic system
a n d r o l l r o d
technology in the
longitudinal direction
enables single or multi-colour printing on different substrates such as
flags, home textiles, banners, towels, blankets, and automotive
technical textiles
Zimmer triple coat is a
c o m p a c t c o a t i n g
machine with precision
back roll and is
equipped with knife,
screen, and slot coating
unit for different
substrates such as
textiles, paper foil,
nonwoven, fibre, glass,
tissues and other
innovative materials. With an expanded portfolio in printing
solutions, A.T.E. now provides the full range of the latest
technologies in processing and caters to the end-to-end needs of all
processing customers.
Rotascreen
Magnoprint,
plant now has a sufficiently large capacity to also produce yarns for
third parties. The Rieter yarn license for high-quality Com4®rotor
yarns thus offers Texgiulia the optimal promotion platform to win
new customers for rotor yarn in future and to develop customer
relationships.
The ceremonial presentation of the Com4®rotor certificate
was held mid-March at the headquarters of the Gabel Group in
Rovellasca-Como (north Italy). In the presence of Dr. Emilio
Moltrasio (Delegate of the Board of Directors and Partner in the
Gabel Group) and Sergio Zonca (Technical Director General of the
Gabel Group), Rieter sales engineer Matthias Stuessi handed over
the certificate to the Management.
With the yarns, spun on the new R 60 rotor spinning machines,
Texgiulia was able to further increase the already very high quality
standard of the yarns and substantially improve the running
properties in its own weaving unit. Yarn purchasers will also profit
from this quality in future.
Rieter actively supports and promotes the supply sources of
licensed yarns, one of the measures being a direct link on the Rieter
website to the licensee. Licensed customers have the opportunity
to profit from the expertise of Rieter specialists and to participate in
Rieter Com4® yarn further training courses. Over and above these
activities, Rieter supports licensed customers with the
implementation of their own marketing actions.
Zimmer triple coat
CORPORATE NEWS
13. Indian textile market is a decentralized, unorganized, fragmented
market and with a hub centric mindset. eg. Surat is ladies fabrics &
polyester/ viscose fabric centric, Erode is a spinning & weaving
cluster, then Banaras is a silk cluster, etc. The problem is that these
hubs are unaware of each others activities and the organised players
play a back stage role in the same.
Birla Cellulose, is the umbrella brand of the Aditya Birla Group’s
range of cellulosic fibre. The Company has taken an initiative to have
a centralized and more organized Indian textile industry. On the
30th of May 2013, India’s 1st time large scale Hub meet was held in
Surat by the Birla Group. The idea is to integrate the entire textile
value chain and its members under one platform and help each
other.
Surat is the largest Hub producing more than 70% of India’s ladies
dress material. More than 90% is with Polyester. And rest 10%
consists of all - Nylon, Cotton, Viscose and PC & PV Blends. The
questions are: World trend is going towards comfort as against our
Synthetic focus. Why are we not growing to our potential? Most
Buyers and orders are from outside Surat. There is Lack of Proactive
Product development in line with world trends. There is hardly any
awareness and links to consumer trends.
Bearing this in mind, Birla believes ‘If my customer grows, I will grow
and vice versa’. Hub meets and participation by all people involved
with the textile industry is one of the initiatives taken by Birla, that
none of the other Corporates have taken till date. Birla Cellulose
proposed the following measures at the Surat Hub Meet for a
fruitful textile partnership for mutual growth:
• For new design the challenge starts from yarn. We support
sourcing for yarns & fabrics
• Commercial information and vendor support for fabrics
beginning with outsourcing
• Successfully started with 60s x 60s, 92 x 88 modal sourcing @
Rs.52/mtr and now being developed indigenously for
commercial use
• Successfully conducted trials for dyeing and printing of
cellulosic fabrics (samples were displayed at the meet)
• Further new products with 80s Modal, HT Modal Poly blends,
slub & fancy blends is in progress
• Sizing development support till successful weaving
• High speed weaving in shuttleless looms
• TRADC: Their innovation centre at Kosamba, to support
innovation.
• Master designers like Mr. Nirmal Doshi, International designer
Mr. Sandy to offer Surat new innovations
• Birla targets to offer Surat over 100 new designs on regular
frequency and bring to international market samples from
mass suppliers like Indonesia and China – for inspiration on
global trends
• Accreditation support: All bench marks for quality of yarn,
fabric would be shared
• TechnologyTransfer Support (TTS) through TRADC
• Coordination with our front end team for marketing support
This kind of symbiotic relation will go a long way in the growth of
Indian textile Industry. Birla Cellulose is also planning to have these
meets in different cities of India. Next meet is in Mumbai where
hubs of Bhiwandi, Ulhasnagar and Tarapur will be included. Many
others are being planned at Ichalkanchi, Coimbatore, Erode etc on
every alternate month across the year.
Lenzing quality and innovative strength set global standards for man-
made cellulose fibres. With 75 years of experience in fibre production,
the Lenzing Group is the only company worldwide combining the
manufacturing of all three man-made cellulose fibre generations on a
large industrial scale under one roof – from the classic viscose to modal
and lyocell (TENCEL®) fibres. Lenzing supplies the global textile and
nonwovens industry with high-quality man-made cellulose fibres and is
the leading supplier in many business-to-business markets. The
portfolio ranges from dissolving pulp, standard and specialty cellulose
fibres to engineering services.
At Techtextil in Frankfurt from 3-5 Oct, 2013, Lenzing is presenting a
new flame-resistant fibre especially for use in upholstery fabrics in
public transportation vehicles.
The guidelines which apply to public transportation vehicles are
particularly strict. The fabric and materials used in these applications
have to satisfy the safety standards. With a newly developed Lenzing
FR® fibre, these satisfy all the safety standards for public safety. The
advantage of a safety fibre in public transportation is that Lenzing FR® is
made from beechwood and is endowed with all of the positive
properties this natural fibre has to offer. The seating “climate” remains
excellent even over longer distances since the good breathing
properties of the fibre take effect here.
The special thing about Lenzing FR® or the “divan fiber” is that, unlike
conventional protection fibres, it does not melt, drip or afterglow. The
latter properties represent an enormous risk for passengers. Another
important safety aspect is that the new flame-resistant fibre delivers a
lower rate of toxicity and flue gas density in the event of a fire.
The “divan fiber” is particularly well suited for use in blends with wool.
Both fibres complement each other superbly. Resistance to fading and
excellent pilling performance coupled with durability make upholstery
fabrics a pleasure to sit on. As a result of using the Lenzing FR® “divan
fibre”, treating wool with additional, ecologically harmful flame-
retardant agents is not necessary – another production advantage!
The new specialty fibre can be used in various transportation vehicles.
Wherever safety and comfort are in demand, Lenzing FR® is the
answer whether in maritime or rail transportation, air transportation,
subways or in public spaces such as cinemas and theatres.
Lenzing presents new fibre development
Mr. Manohar Samuel
VP, Birla Cellulose
11Textile Value Chain | July -Sept 2013
Birla Hub Meet
14. Completing our section of skill gap from spinning, to fabric
manufacturing, to fabric processing and ending with
garmenting; we continue with the emerging trends in skill
requirements, requirements state-wise and projected
requirements of human resources.
Current Training/Education Infrastructure: The current
training infrastructure is inadequate on both number of people
trained and also the quality of training being imparted. Also, very
few of the training initiatives are targeted at the shop floor level.
The newly inducted workers learn through informal training and
learning from the experience of the existing work force.
The availability of trained manpower is a key issue for the
garmenting sector. The ATDC, ITIs and NIFT annually train up to
50,000 workers. A few private sector players also provide
training specific to the garmenting sector. A large portion of the
requirement of human resource at the operator level is met by
on the job training. Hence training at the operator level is a key
gap. Acute shortage of skilled man power leads to poaching and
acts as a detriment to spending on in house training initiatives.
• Emerging trends in human resource requirements
1. Technology: The changes in technology would significantly
affect the profile of people involved. As mentioned earlier, the
share of shuttle-less looms in the Indian textiles industry is only 2-
3% as against a world average of 16.9%, thereby indicating a low
degree of modernization in the Indian weaving industry. Although
the Indian spinning sector is relatively more modernised, around
60% of installed spindles are more than 10 years old and open-
end (OE) rotors account for only 1% of total installed spindles. In
the apparel sector, India has much lower investment in special
purpose machines, which perform specific functions and add
value to the product. Very few export establishments have
invested in cutting machines or finishing machines. The low level
of technology and government incentives like TUFS would drive
modernization in the industry where as the high power costs
would be a detriment.
The technological upgradation would necessitate the human
resource to be trained in modern machinery and also greater in
house spending on training. The shortage of labour and
increasing wage rate would further induce greater automation
which will lead to higher productivity. For instance, the operating
hours per quintal of yarn have decreased from 77 to 25 on
account of modernization and would continue to fall. Also, the
numbers of people involved in post spinning operations have
come down on account of automatic cone winding machines.
The modern machinery would require skilled maintenance
people who have the requisite knowledge of the same. Proper
maintenance would be crucial as machine down time and costly
spare parts would significantly affect the performance of the
industry.
2. Quality Processes: There would be increasing focus and
adoption of quality and environment related processes, such as:
• ISO 9001:2008
• ISO 14001
3. Research & Development: The textile industry does not have
R&D as a focus area. The industry would have to invest more in
both process and product R&D to maintain product and cost
competitiveness. This requires industry-academia collaborations
as well as individual R&D efforts by the companies.
4. Labour laws: More flexible labour regulations will positively
affect the industry. Currently, T&C industry comes under the
purview of Contract Labour Act, 1970 which prohibits contract
labour for the work that is perennial in nature. The exporters find
it difficult to manage the seasonal and order based volatility in
demand on account of this. Change in the current regulations can
lead to opening up of more employment opportunities. Also, the
current regulations prohibit women from being employed in
night shifts. Relaxation of the same with adequate safeguards can
lead to more participation of women and also help in addressing
the skill shortage in the industry.
5. Human resource related: Modernization of technology
would necessitate more technical skills for operators in the
production and maintenance functions across the value chain of
the textile industry. The sector also needs multi-tasking/ multi-
skilling at the operator level. The human resource at the higher
levels as well as in other functions like procurement would need
to possess the knowledge of various types of machines and also
keep abreast with the changes in technology.
The garmenting sector would be the key driver of the
employment in the textile sector. Majority large portion of the
human resource requirement will be for operators who have the
adequate knowledge of sewing machine operations and different
types of seams and stitches. Although, the industry will continue
to have predominantly line system of operations, designer and
high end fashion exports would necessitate “make through”
system of operations which would require the operators to have
the ability to stitch the complete garment. The availability of
merchandising and designing skills would be crucial for increasing
share in export markets and tapping the potential in new markets.
• Regions which will drive human resource requirements:
The major centres in India where this employment generation
would take place are Tamil Nadu, West Bengal, Karnataka,
Maharashtra, and Gujarat. The state of Tamil Nadu will account
for around 30% of the employment in the textile sector.
By ICRA Managment Consulting Services Ltd. (IMaCS), www. nsdcindia.org
12 Textile Value Chain | July -Sept 2013
SKILL GAP & ANALYSIS Emerging trends in skill requirements &
projected requirements of human resources.
15. 13Textile Value Chain | July -Sept 2013
Fig. 1. Share of various states of employment in the textile sector
Source: Annual Survey of Industries, IMaCS Analysis
The poor performance of the industry in the recent past has
resulted in the sector not attracting new investments. The cluster
development activities of various organizations have not found
takers and hence new clusters do not appear likely at this point of
time. However, Andhra Pradesh is a likely future destination for
new investments, especially in the garmenting sector with the
establishment of Apparel Parks. The government initiatives of
providing power at a cost of 2 Rs per unit will be a key factor in
attracting investments in spinning sector. Also, the state has
surplus cotton and would result in lower logistics cost. Availability
of raw materials and low power costs will also attract investments
in the downstream activities like fabric manufacturing, processing
and garmenting.
The scheme of integrated textile parks and various SEZs
would also affect the regions availability of labour. States like
Uttaranchal necessitate that most of the labour force in the units
operating in SEZ should be local.
The states of UP, Bihar and Orissa etc would be key
catchment areas to meet the labour requirements. Already the
spinning sector in Tamil Nadu is seeing more and more influx of
labour from these states as the current wage rates in the states
are very high.
Environmental concerns would affect the processing sector.
The effluent treatment requirements might see units shifting to
coastal areas as marine discharge requirements are less stringent.
Projected Human Resource Requirements in the Textile &
Clothing Sector: This projection is based on the projection of
industry size. It is estimated that the PFCE on clothing will grow at
a CAGR of 7.5% between 2008 and 20224. Based on projected
growth of GDP and exports, we expect that the exports of
textiles will grow at a rate of 11% to 11.5%. Thus, the overall
T&C sector will grow at a CAGR of 9.5% to a size of Rs. 6,730
billion. Out of this, the share of exports is expected to increase
from just under 50% currently to about 60% in 2022.
Fig. 2. Projected size of the Textile and Clothing industry (in Rs. billion)
While analyzing the human resource requirement, the
categorization of the overall T&C sector as follows:
1. The Mainstream T&C sector – comprising of Spinning,
Fabric Manufacturing, Fabric Processing and Garmenting.
2. Other related industries such as:
Handloom, Woolen, Sericulture, Handicrafts, Jute.
While we expect the human resource requirement in the
Mainstream T&C sector to be closely related to market driven
T&C industry growth, the human resource requirement in areas
such as handloom and handicrafts would have to be
supplemented by initiatives from the Government and Industry.
The addition of human resource into these other sectors would
be at a much lower rate as compared to the Mainstream sectors
due to need for significant support for earnings, scope for
enhanced technology intervention and automation as compared
to current levels, the need to add value, and attractiveness of the
sector among the human resource supply.
Keeping in mind the above factors and the growth of the industry,
it is expected that the overall employment in the T & C sector
would increase from about 33 to 35 million currently to about 60
to 62 million by 2022. This would translate to an incremental
human resource requirement of about 25 million persons. Of
this the Mainstream T&C sector has the potential to employ
about 17 million persons incrementally till 2022.
In our next issue we will continue with NSDC Focus areas for
Skill Building
PFCE on cloting Exports
8,000
7,000
6,000
5,000
4,000
3,000
2,000
1,000
-
9.5%
4,049
2,684
2,611
2,160
1,359
1,404
2012 2018 2022
891
992
2008
Others,7%
Andhra Delhi,3%
Pradesh , 4%
Uttar Pradesh, 4%
Punjab, 5%
Rajasthan, 5%
Haryana, 5%
Gujarat, 10%
Maharashtra, 8%
Karnataka, 11%
West
Bengal, 11%
Tamil
Nadu, 28%
SKILL GAP & ANALYSIS
17. WARM COLOURS
Courtesy: www.knitweartrends.com. Colour Codes based on Color World, www.csicolorworld.com
DRIED ROSE
04-CW-0302843-CO
RAISIN
04-CW-0303056-MC
BORDEAUX
04-CW-0303146-CO
RED
04-CW-0301046-MC
RUST
04-CW-0200174-MC
YELLOW
04-CW-0101165-CO
GINGERBREAD
04-CW-0701603-MC
Men's Wear Colour Forecast 2013-14 Fall/ Winter
18. ISDI has entered into a collaboration with Parsons, the New
School for Design, New York. The Associate Campus of world’s
number one Fashion School – Parsons is called the Indian School of
Design & Innovation (ISDI), Parsons Mumbai.
Parsons Mumbai is a central part of Parsons agenda of ‘going
global’. Parsons Mumbai, like Parsons Paris & Parsons Shanghai will
function differently based on local regulations, and, more importantly,
on local traditions. Through the establishment of Parsons Mumbai and its
other global academic centres, Parsons global initiatives are designed to
build learning networks connected by major urban centres of art and
design. These initiatives join Parsons existing study abroad offerings,
online courses, and educational partnerships in Europe, Asia, and Latin
America. The plan allows Parsons to share their proven educational
methodology and give students opportunities to learn and work in real-
world settings. Parsons goal is to develop students' global awareness,
cultural literacy, and familiarity with the systems that shape creative,
humanitarian, and entrepreneurial endeavours around the world.
The Indian School of Design and Innovation (ISDI) opens its
doors to students in July 2013. ISDI is committed to a new educational
model inspired by the idea of design and innovation as transformative
forces in society. It is located in India’s fashion capital Mumbai and its
campus is situated in centrally located Parel at the Indiabulls Centre.
ISDI offers a series of globally benchmarked Undergraduate
Diploma Programmes (UGDP), four year intensive programmes
(foundation year plus three year specialisation) for students across the
disciplines of fashion, interior, product and communication design.
Opportunities to engage in design education for graduates and young
professionals start in September 2013, with the launch of ISDI’s one year
Post Graduate Programme (PGP) in Fashion Business Management and
Creative Entrepreneurship
The collaboration with Parsons will enable ISDI to benefit from
Parsons’ rigorous curriculum, prominent visiting faculty, well established
student exchanges and global relationships. The curriculum will include
development, quality assurance, student and faculty exchanges, as well
as collaborative projects with students at Parsons' campuses in New York
and Paris.
ISDI’s academic ideology moulds designers to cater to a
diverse range of industries and employers. All educational programmes
are built upon the foundation of a forward-thinking and innovative
curriculum, industry sponsored projects, national and international
collaborations and a deep sense of social and environmental
responsibility. Creativity, innovation and sustainability are core to ISDI’s
philosophy.
More programmes are on the anvil, so keep yourself
updated through their website www.isdi.in
Pic: Parsons, NY, USA
Last textile policy was declared in 2000. Thereafter, lots of
developments have taken place in the Textile Industry and new
sectors like technical textile have emerged. So, the Govt. has
appointed National Manufacturing Competitiveness Council
(NMCC) under the chairmanship of Mr. Ajay Shankar. The first
nd
meeting of this committee will be taking place on 2 July 2013. This
committee will review the old textile policy and prepare a final report
st
on National Fibre Policy by 31 October 2013, said Mr. A.B. Joshi,
Textlle Commissioner, while inaugurating India's largest garment fair
st
on 1 July 2013.
The Clothing Manufacturers Association 0f India (CMAI), celebrating
its Golden Jubilee this Year, haD organized India's Largest ever
th st rd
Apparel Trade Show “The 57 National Garment Fair” from 1 – 3
July at Bombay Exhibition Centre, NSE Complex, Goregaon (E),
Mumbai.
Mr. A.B. Joshi, Textile Commissioner has further stated that after
removal of 10% excise duty on branded readymade garments, it has
provided boost to the industry and it has started moving upwards
again towards growth path. Good monsoon will also increase the
cotton production.
The Fair was spread over approx. 3.75 Lakh Sq. Feet and had 589
Stalls displaying over 640 Brands. This has been the India’s Largest
ever Garment Fair held so far. Approx 35,000 Retailers from all across
th
CMAI'S: The 57 National Garment Fair
India visited this B2B
Fair. There were 4
fashion shows, 2
fashion shows each,
on 1st & 2nd July
2013 which were
highly received &
appreciated.
T h e B u s i n e s s
N e t w o r k i n g
Sessions provided
opportunities for
Exhibitors to meet
A g e n t s &
Distributors in the
First Session, High
Street Retailers in
the Second Session and Merchandisers from National Chain Stores in
the Third Session. CMAI invited Reputed Agents & Distributors, High
Street Retailers from 15 States and All National Chain Stores to
Participate in the these Sessions.
CMAI’s next National Garment Fair will be held from 6th to 8th January
2014 at Bombay Exhibition Centre, Goregaon-Mumbai.
16 Textile Value Chain | July -Sept 2013
COLLEGE FOCUS ISDI, Parsons Mumbai
20. Figure 2
Operational Competencies
Characteristics Rating categories
Strong • Use of latest machinery/processes
• Capacity utilisation >85%
‘IND A’/‘lower end of ‘IND AA’
Medium • Growing use of new technology
• Capacity utilsation: 60%-85%
‘IND BBB’
Weak • Mix of old and new technology
• Capacity utilisation: 40%-60%
‘IND BB’
Very weak • Capacity utilisation below 40% due to old
technology and/or power supply or labour
problems
‘IND B’ and below
Source: Ind-Ra
18 Textile Value Chain | July -Sept 2013
WHAT IS CREDIT RATING & WHY IS IT IMPORTANT?
These questions immediately come to the mind when one hears about Credit Rating.
Credit Rating is a pre-requisite for borrowing of funds by Corporate. Rating is an assessment of the financial strength of
company. Rating is intended to bring transparency and efficiency to build confidence of investors whether individuals, banks, financial
institution, foreign institution etc; by mitigating and managing risk, taking pricing decisions, generating more revenue and enhancing
returns.
Ratings help lenders and borrowers, issuers and investors, regulators, and market intermediaries to make better-informed
investment and business decisions. The rating exercise takes into account the management capability, industry dynamics, operational
performance, financial risk characteristics and the future prospects of the entity. Ratings help shape public policy on infrastructure in
emerging markets. Ratings catalyse economic growth and development in countries for a better tomorrow.
Even otherwise, it is advisable to conduct rating to know a company’s strengths and weaknesses. To give an insight in the
world of Credit Rating, we have interviewed with the best in the credit rating business in India.
1- India Rating & Research / Fitch Group
2- CRISIL
3- CARE , Credit Analysis & Research limited
Readers will definitely find their interviews knowledgeable, worthwhile and interesting.
COVER STORY
Ind-Ra has issued a sector-specific special report describing
the credit factors the agency uses to analyse the Indian textile
companies.
Ind-Ra believes the Indian textile sector in general and
cotton textiles sector in particular is exposed to volatile raw
material prices which is the largest cost variant and can affect a
company’s finances. Price risk also emanates from the adverse
impact of regulation and low pricing flexibility of end products.
For synthetic textile players, raw material prices are correlated to
the demand-supply situation, crude oil prices, movements
of dollar/rupee and prices of cotton and chemical
substitutes.
Textile operations are working-capital intensive due to long
inventory periods and high debtor days. In the cotton industry,
profitability is determined by the efficiency and the timing of
cotton buying and inventory management. Ind-Ra gives rating
advantage to companies which have a proven track record of
managing the inventory risk.
The natural rating territory of the Ind-Ra-rated textile
universe is ‘IND BBB’ and below. This is due to lower margins
from a difficult operating environment on account of regulatory
influence, raw material cyclicality and fragmentation. Players
who demonstrate resilience to volatility, slowdown, adequate
liquidity and financial flexibility qualify for higher rating
categories. Companies with strong market position and
distribution network as well as with brand recognition enjoy a
comparative rating advantage.
The textile value chain is diverse and complex and every
company’s business model can be unique depending upon the
level of value addition, product sophistication and end-market
exposure. Ind-Ra looks at product quality and range, labour
and power cost and availability and the level of technology and
integration while assessing a company’s operational
competencies and earnings capacity.
Business risks are different for cotton and synthetic textiles.
Ind-Ra takes a positive note of companies which are diversified
into both cotton and synthetic textiles, or have the flexibility to
switch their primary raw material.
In the below tables, Ind-Ra Report tells us which sector is
rated, for what & their grades by Ind-Ra.
‘Indian Textiles: Rating Approach’ -
Factors Impacting Credit Ratings, A Special Report
Figure 1
Raw Material Sourcing Capability
Characteristics Rating categories
Strong • Efficient scale and timing of procurement
• Strong liquidity and supply chain
• Capacity to weather cyclicality
‘IND A’/’lower end of ‘IND AA’
Medium • Demonstrated ability to manage working capital
cycle
• Moderate scale of operations for efficient
procurement
‘IND BBB’
Weak • Small scale of business
• Volatile working capital cycle
‘IND BB’
Very weak • Generally tight liquidity
• Small scale leading to lower ability to mitigate
raw material cyclicality
‘IND B’ and below
Source: Ind-Ra
CREDIT RATING
21. Figure 6
Leverage and Coverage Ratios
Rating categories
FY12 median adjusted debt net of
cash/op. EBITDAR (x) Net fixed charge cover (x)
‘IND A’/‘lower end of ‘IND AA’ 2.5 4.4
‘IND BBB’ 3.2 1.8
‘IND BB’ 4.3 1.3
‘IND B’ 5.5 1.1
Source: Ind-Ra
Figure 5
Access to External Financing
Rating categories Access to external funds
‘IND A’/‘lower end of ‘IND AA’ Complete access to external financing; high financial flexibility
‘IND BBB’ Reasonable access to external financing
‘IND BB’ Access to external financial mainly in form of bank refinancing or
loans from founders
‘IND B’ and below Usually delays in obtaining additional bank limits; or non-injection of
funds from founders
Source: Ind-Ra
Figure 3
Level of Value Addition
Value chain Level of integration Rating range
Strong Value added/branded products that
command stable demand/ pricing
‘IND A’/‘lower end of ‘IND AA’
Medium Reasonable value addition that enjoys
stable demand while pricing could vary;
wide product range
‘IND BBB’
Weak Commoditised products; narrow product
range
‘IND BB’
Very weak Low-value added businesses (e.g. trading);
highly susceptible to price changes
‘IND B’ and below
Source: Ind-Ra
Figure 4
EBITDAR and CFO Margin
Rating categories Op. EBITDAR margin (%) CFO/sales (%)
‘IND A’/‘lower end of ‘IND AA’ • Consistently stable EBITDA
margins of 10% or higher
Consistently positive
‘IND BBB’ • Moderate volatility in profitability
• Expected to remain +ve
throughout cycle
Generally positive
‘IND BB’ • Volatile, low margins
• Likely to turn –ve in downturn
Generally negative
‘IND B’ and below • Erratic or very low margins
• EBITDA losses
Consistently negative (>-10%)
Source: Ind-Ra
In an engrossing interview with TVC, Mr. Rakesh Valecha,
Senior Director, Head - Corporate Ratings, talks about Ind-Ra’s
role in credit rating for textile companies, their parameters and
the state of Indian textile industry.
TVC: What is the role of your agency and what are the various
services you offer?
R.V.: India Ratings & Research (Ind-Ra) is India's most respected
rating agency committed to providing the India's credit markets
with accurate, timely and prospective credit opinions. Built on a
foundation of independent thinking, rigorous analytics, and an
open & balanced approach towards credit research, Ind-Ra has
grown rapidly during the past decade gaining significant market
presence in India's fixed income market.
Ind-Ra has six offices in India located at Mumbai, Delhi, Chennai,
Bangalore, Hyderabad and Kolkata. Ind-Ra is recognised by the
Securities and Exchange Board of India, the Reserve Bank of India
and National Housing Bank
TVC: What are the different types of clients Ind-Ra caters to?
R.V.: Ind-Ra currently maintains coverage of corporate issuers,
financial institutions, which includes banks and insurance
companies, finance & leasing companies and managed funds,
urban local bodies and project finance.
TVC: What are the various factors considered by Ind-Ra
while assigning credit ratings for issuers of debt
obligations/instruments?
R.V.: The ratings are assigned based on established criteria and
methodologies. These criteria are available on
www.indiaratings.co.in. The Key highlights of “Corporate
Rating Methodology” which is the Master criteria used for rating
Corporate are as below:
Qualitative and Quantitative Factors: India Ratings Corporate
ratings reflect both qualitative and quantitative factors
encompassing the business and financial risks of fixed-income
issuers and their individual debt issues.
Key Rating Factors
Industry risk Financial profile
Operating environment Cash flow and earnings
Company profile Capital structure
Management strategy/governance Financial flexibility
Group structure
Source: India Ratings
Issuer Ratings: An Issuer Rating (IR) is an assessment of an
issuer’s relative vulnerability to default on financial obligations,
and is intended to be comparable across industry groups.
Issuers may often carry both Long-Term and Short-Term IRs.
Because both types of IRs are based on an issuer’s fundamental
credit characteristics, a relationship exists between them
Historical and Projected Profile: India Ratings’ analysis typically
covers at least three years of operating history and financial data,
as well as the agency’s forecasts of future performance. These
are used in a comparative analysis, through which the agency
reviews the strength of an issuer’s business and financial risk
profile relative to that of others in its industry and/or rating
category peer group.
Weighting of Factors Varies: This comparative analysis includes
consideration, where appropriate, of the potential for changes
in the issuer’s operating environment or financial strategy
relative to its ratings. The weighting between individual and
aggregate qualitative and quantitative factors varies between
entities in a sector as well as over time. As a general guideline,
Senior Director, Head - Corporate Ratings,
Rakesh Valecha
19Textile Value Chain | July -Sept 2013
COVER STORY CREDIT RATING
INTERVIEWIndia Ratings & Research,
A Fitch Group Company
22. where one factor is significantly weaker than others, this weakest
element tends to attract a greater weight in the analysis.
TVC: How do you find the growth & investment in the current
Indian textile industry?
R.V.: Indian textile industry has been undergoing through a
challenging phase over 2009-2012 characterized by demand
seasonality, uneven government policy and speculation-led cotton
price volatility increasing financial risks for sector. Current demand
prospects remain modest and Ind-Ra has a ‘negative to stable’
outlook on the sector for calendar year 2013. Policy for 2013 is
however encouraging with Budget 2013-14 focusing on expansion
and modernization via continuation of TUFS (Technology
Upgradation Fund Scheme- providing capital and interest subsidy to
textile sector) with an investment target of INR 1510 bn. However
sector’s appetite for large debt-led capex in the near-term could be
questioned as most companies are in consolidation mode.
Domestically, weak consumer sentiments, high inflation and
low wage growth have been dampening textiles and apparel sales.
Abatement of excise duty as announced in Budget 2013-2014 will
help reduce prices of end products and uplift demand. In 2012,
garment apparel exports declined by 6% due to economic
slowdown in key end-markets US and Europe. Going forward
garment exports outlook is mixed with Europe re-entering
recession, although US demand pick up is encouraging. Cotton
yarn growth outlook is positive with higher demand of cotton yarn
from China and improving margins on account of low cotton prices
and firm cotton yarn prices.
In this backdrop, investments in the textile sector have
slowed as reflected in the lower number of applications under
TUFS. In 2010-11 the number of TUFS applications plunged
manifold to 256 (total project cost INR 397 cr) from 2384 (total
project cost INR 28005cr) in 2009-10.
TVC: There is a downtrend in investment in textile sectors. Why do
you think the investors are not expanding/planning new projects?
Are these investors diverting to other industries?
R.V.: Investment activity slowed down across the textile value chain
in 2012 due to uncertainty on demand and volatile raw material
prices which led of funds being tied in inventories. Companies have
deferred or slowed on capacity expansion plans due to several
reasons including under-utilization of existing capacity, shortage/high
cost of self-generated power (Gujarat and South India) and even
regulatory reasons (such as environmental regulation in Tirupur).
Continuation of the TUFS in the Twelfth Five Year Plan and
INR 24bn allotment for technology upgradation is likely to
encourage investments in power loom modernization. To boost
investments in the spinning segment, the Gujarat Government in
September 2012 came up with The Gujarat Textile Policy (GTP)
targeting installation of 2.5m spindles worth INR 70 bn over the next
five years. The impact will remain credit neutral in 2013 as benefits
will accrue only in the medium term. Improvement in market
conditions and Foreign Direct Investment could provide impetus to
new projects in the medium term.
There is a general deceleration in the domestic investment
drive due to high cost of debt and paucity of equity funding. Textile
expansion has the benefit of 10% capital subsidy and 4% interest
subsidy under TUFS which is not available for other industries. RBI
also extended the 2% interest subvention for exporters till 2014, and
additional 2% incentive is provided by the government for entities
registering higher exports. Hence Ind-Ra believes that investors are
broadly not diverting to other industries but anticipating the right time
to make new investments.
CRISIL Ratings is India's leading rating agency. They pioneered
the concept of credit rating in India in 1987. They have rated over
60,000 entities, by far the largest number in India. They are a full-
service rating agency who rate the entire range of debt instruments:
bank loans, certificates of deposit, commercial paper, non-
convertible debentures, bank hybrid capital instruments, asset-
backed securities, mortgage-backed securities, perpetual bonds,
and partial guarantees
In a candid conversation with TVC, Senior Director at CRISIL
Ratings, Mr. Subodh Rai, gives the real picture of Ratings in the
Textile Industry…
TVC: How do you find the growth & investment in the current
Indian Textile Industry?
S.R.: The textile industry comprising of yarn, fabric and readymade
garments is expected to grow a modest rate of 4-5% p.a. over the
medium term. This is likely to be supported by stable domestic
demand, and a marginal growth in international demand.
Investment in the textile sector is likely to remain subdued over the
near to medium term with respect to large capacity additions.
However, extension of Technology Upgradation Fund Scheme
(TUFS) for the 12th Five- Year plan is expected to provide some fillip
to the sector.
TVC: Is there a downtrend in investment in the textile sector? If
Yes, Why do you think the investors are not expanding/planning
new projects?
S.R.: Yes. Given the uncertainties in the economic environment and
overcapacities prevailing in the industry, companies are adopting a
wait-and-watch approach towards investment in projects. Further,
shortage of labour and stressed power scenario in major textile hubs
of South India. are deterrents for additional investments.
TVC: What is the benefit of Ratings for textile companies?
S.R.: Rating is a prime input in deciding interest rate charged by banks.
In addition, the better-rated companies, across industries, are able to
diversify its funding sources e.g. access to capital market, and also
negotiate finer interest rates with banks thereby save on interest costs.
Rating is also perceived as a self-improvement tool; an independent
credit opinion from CRISIL provides the rated company pointers for
improvements. A large number of CRISIL’s textile clients have
indicated that besides the rating, the interaction and the feedback from
CRISIL is an important element in their strategic and operational
decision-making.
India Ratings & Research, A Fitch Group Company INTERVIEW
20 Textile Value Chain | July -Sept 2013
INTERVIEWCRISIL Ratings
23. CARE Ratings has established itself as the second-
largest credit rating agency in India.
General Manager of CARE Ratings, Mr. Milind
Gadkari was kind enough to give TVC an exclusive
interview in his busy schedule.
Mr. Milind Gadkari
General Manager of
CARE Ratings
TVC: What is the role of your agency and what are the
various services you offer?
M.G. : Credit Analysis & Research Ltd. (CARE) is a premier Indian
Rating Agency providing full range of ratings as well as grading
services. It includes debt instrument ratings, bank loan ratings,
issuer ratings, SSI MSE ratings, SME ratings, Securitization ratings
etc. It also provides grading services like IPO grading, equi grade,
shipyard grading, maritime training course grading etc. CARE also
has a research division which provides Industry research,
customized research, etc
TVC: What are the different types of clients CARE caters to?
M.G. : CARE caters to a whole range of clients which includes
Industrial companies, Banks, Non-banking financial companies
(NBFCs), Infrastructure entities, Microfinance institutions,
Insurance companies, Mutual funds, State Govt. entities, urban
local bodies, services' organizations, etc.
TVC: Who are CARE's major clients?
M.G. : CARE's clientele includes large banks like State Bank of
India, ICICI Bank, Punjab National Bank, HDFC Bank, Axis Bank
etc. It also includes large corporate entities like Reliance Industries
Ltd., Grasim Industries Ltd., Tata Motors Ltd., Tata Steel Ltd., Aditya
Birla Nuvo Ltd. etc.
TVC: How do you find the growth & investment in the
current Indian Textile Industry?
M.G. : While the growth of Indian Textile Industry has remained
stable during last two years, incremental investments in new
capacity have not been aggressive. The investment in pipeline is not
uniform and it is distributed amongst some of the sectors of the
industry. Whereas there is capacity addition happening in sectors
like denim, continuous polymerization (CP) plants etc. some other
sectors like spinning are witnessing modest investments. Main
reasons for overall slowdown in investment climate have been as
follows:
Limited financial flexibility available with the textile companies,
with leveraged balance sheets
High interest rates
Heightened Volatility in commodity prices like cotton, cotton
yarn, crude oil
Increased power and fuel costs, with power shortages in
some of the states
After robust investment in FY11, spinning sector has witnessed
slowdown in investment flow in the next two years. At the same
time, denim sector has seen continued growth in investment,
which is likely to result in oversupply situation in the segment.
Polyester chain has witnessed investments in CP plants, with many
players implementing the same.
Union Budget 2013-14 has laid special emphasis on textile
sector by way of extension of TUFS in the 12th Plan with an
investment target of Rs.1,51,000 crores. Extension of TUFS
coupled with RBI's action on the monetary policy front will
encourage investment in the sector which has not seen much of
capacity addition in the past two years. Further, other budget
proposals like 'Zero Excise Duty Route' for Readymade Garment
(RMG) Industry, setting up of RMG Park within ITPs’ and financial
assistance for Handloom sector will also encourage investments in
the sector.
With moderation in cotton prices and sustained demand for
cotton yarn from China on the back of China's concentration on
production of value added products, the prospect of cotton
spinning units is expected to improve. Exports of cotton yarn are
expected to touch an all time high during FY13 with 758 million kg
of cotton already exported during the period April-Dec 2012,
which is almost 20% higher as compared to corresponding period
a year ago. However, in case of Indian apparel sector wherein the
US and EU account for more than 70% of exports, the concerns
over the economic health of these regions puts pressure on the
Indian apparel exporters in the medium term.
TVC: Please explain whether peculiar problems faced in
textile industry like change in export policies, volatility in
prices of cotton, fibres, etc are taken into account during
credit rating or not. In other words, whether some
consideration is shown for the set back of financial
performance relative to factors stated above.
M.G.: As per rating methodology, CARE's rating process begins
with the evaluation of the economy/industry in which the
company operates, followed by the assessment of the
business-risk factors specific to the company. This is followed
by an assessment of the financial and project-related risk factors
as well as the quality of the management. This methodology is
followed while analyzing all the industries that come under the
purview of the manufacturing sector. Any policy changes which
may occur from time to time and its impact on operations of the
companies in the industry are considered while rating debt of
those companies.
As far as ratings of companies in textile industry are
concerned, there has been deterioration in credit profile of small
to mid size companies having leveraged balance sheet and having
limited presence in the textile value chain. However, credit profile
of large, integrated players having presence across the textile value
chain has remained largely stable.
21Textile Value Chain | July -Sept 2013
CARE RATINGS INTERVIEW
24. Bombay Dyeing and Manufacturing Co Ltd. was established by Nowrosjee Wadia in 1879, as a very small operation. The
Company dip dyed Indian spun cotton yarn and dried it in the sun in three colours; turkey red, green and orange. From such modest
beginnings, over the last 133 years, Bombay Dyeing has transformed themselves into one of the most reputed and esteemed establishments
in India.
Bombay Dyeing is the flagship company of the Wadia Group, a multi-product conglomerate with turnover in excess of 1.5 billion dollars and
employee strength of 20,000 people. Some of the well known group companies include Britannia, Go Air, Bombay Dyeing, Bombay Realty,
Bombay Burmah and many more. In January 2009, Bombay Dyeing & Manufacturing Company acquired the shares of White Horse Real
Estate Company at face value and consequently it became a 100% subsidiary of the company.
The Indian textile industry is one of the oldest and prominent players in global textile industry. Currently it is a $52 billion industry and is
anticipated to grow to $115 billion by 2012. India accounts for 25% of the world yarn exports and it also accounts for 12% of the world’s
production of textile fibres and yarn. Companies like Bombay Dyeing play a tremendous in India’s growth.
Textile manufacturing is the main activity of Bombay Dyeing with 5 manufacturing facilities confirming to international standards. Bombay
Dyeing is country’s largest exporter of home textiles. Bombay Dyeing's production is exported to USA, Canada, UK, Germany,
Netherlands, Italy, France, Poland, Czechoslovakia, New Zealand, Switzerland, and many more countries. Presently, Bombay Dyeing has a
distribution chain of over 600 exclusive stores across the country.
Bombay Dyeing’s product range encompasses various categories of home furnishing, premium and stylish bed and bath linen, suiting and
shirtings. Let us take a brief look at their products:
Chemicals: Bombay Dyeing is the largest manufacturer of Dimethyl Terephthalate (DMT) in India. It has a capacity to manufacture 1,65,000
tonnes per annum (TPA). DMT is raw material for manufacturing polyester fibre, film, filament & yarn and engineering plastics.
Polyester Staple Fibre (PSF): PSF is manufactured from 100% Virgin Polymer from continuous polymerisation plant. Product range from PSF
includes micro fibres, semidull/ optically white/ dopes dyed black/ Hollow/ Super High Tenacity and trilobal products mix, amongst others.
The entire gamut of textile products includes:
Bedding range: Bed sheets, bed covers, quilts, duvet covers, dohars, bed-in-bag sets, blankets,
pillow cases, cushion covers and shams
Bedding accessories: Cushions, pillows, duvets, comforters, diwan sets and bed décor sets
Bath linen: All types of towels for all purposes, bath robes and bath mats
Hotel linen: Twills, dobby weaves, satins, jacquards, high-thread-count-sheeting and satin
fabrics
Industrial fabrics: microdot interlining fabrics for shoe uppers, adhesives, abrasives and
leather cloth.
All Bombay Dyeing products are manufactured to the highest quality standards. The company has stood the test of time on the basis of the
wide range of high quality products that it offers to the consumers. It also creates the widest range of designs and offering with more than 1000
designs per year that are unmatched by any other company in its category and is the ultimate destination for the latest trends in the
industry.
Bombay Dyeing holds undisputed leadership in its category since its inception. The vision of the 1st generation created by Nowrosjee
Nusserwanje Wadia, is being continued thru generations with the 2nd generation of Sir Ness N. Wadia, 3rd generation of Neville N. Wadia,
4th generation of Nusli N. Wadia and the 5th generation of Jeh Wadia and it will indisputably continue with even more fervour. It is a Legacy of
over 130 years, driven by the vision to excel. It is an enterprise that generates sustainable value on the strength of trust and transparency.
CORPORATE PROFILE
Shri. Nusli N. Wadia
Chairman
Wadia Group
Shri.Jeh N. Wadia
Managing Director
Bombay Dyeing
22 Textile Value Chain | July -Sept 2013
25. TVC: Bombay Dyeing is a leader in home textiles segment and
has ruled at the top for many years. However recent
impressions of the Company not much being very active in the
textile industry are doing the rounds. Our readers would like to
know your take on the same.
D.M.: Impressions are actually not correct. Growth of our
Company is more than 20% in last year as compared to general
market growth rate of 5 % in textile business. We are totally
committed to textile business, particularly home textiles. We have
recently hired a new CEO who is fully dedicated to expanding retail
side of our business by adding number of company outlets. In
addition, we are also increasing our focus on large format stores. So
our Company is very much keen in expanding textile business and
we are absolutely active.
TVC: What is your Company’s current production capacity?
D.M.: Our production plant for home textiles is at Rajangaon, near
Pune, Maharashtra. Capacity is 50000 lac meters per month. We
procure grey fabric from our suppliers and various ancillaries,
process it and make final finished products to sell at retail counters.
Our Polyester Staple Fibre (PSF) plant is situated at Patalganga, in
Raigad district, Maharashtra has a capacity of 13,000 tones per
month & entire product is sold as a commodity in the market.
Our spinning and winding facilities has an installed capacity of
1,35,336 ring spindles and our daily production of fabrics is
3,00,000meters.
TVC: What is the scenario of the Company’s exports and
domestic markets?
D.M.: 90% of our turnover is from the domestic business in our
own brand. 10% turnover is from Exports with made- to-order. We
do not yet sell our own brand in the international market. We have
400 Exclusive Retail outlets & other 2000- 3000 outlets in India in
which Bombay dyeing products are available.
We also have institutional business where we supply to Hotels,
Hospitals, schools, charitable trusts and many more.
TVC: What is the current market size & share of Bombay Dyeing
products in India?
D.M.: Home textile segment is estimated at Rs. 10,000 crore of
industry in India, in which organized sector is only 10 %. In the
organized sector, Bombay Dyeing’s India market share is 40%. In
the total market (Organized & Unorganized) Bombay Dyeing’s
market share is 4%.
TVC: What is your take on branding of PSF; will that improve
your profitability?
D.M.: It is an industrial product. It will not impact profitability but
will impact innovation in terms of special features and benefits and
will increase growth of profit.
TVC: What is Bombay Dyeing’s Business Model?
D.M.: For Our Business Model for Marketing, we follow
multiple channels such as: our own retail stores, franchisee stores
(which are more successful), large format stores (in recent times)
and Multi-brand stores in 2 & 3 tier cities
For our Business Model for Manufacturing we have: dedicated
suppliers for yarn, Job work for weaving, direct outsource of
fabrics and in-house processing like bleaching, dyeing, value
added activity, etc.
Currently, however
our focus is on
R e t a i l i n g a n d
marketing rather
than manufacturing.
Our further plans
also include product
a n d d e s i g n
development.
TVC: What are the Company’s plans and reasons for investing
in textiles & other industries?
D.M.: We are investing for growth. We want to be closer to the
customer and improve our turnover and margins. Our Current
turn over for Home textile is Rs. 500 crore, 25 % of total, PSF is
1 5 0 0 c r o r e , 5 0 % o f t o t a l . O u r c u r r e n t
utilization capacity is 60%. We are not planning for more
manufacturing capacity. However, upgrading production
technology is on the cards. We are expanding more on front end,
that being Retail. We are planning to expand our retail outlets,
building brands, advertising, promotions and more in those lines.
Currently our Company is investing in these 3 business Verticals
now: Home Textiles, Polyester Staple Fibre & Real Estate
Development.
We are not very keen on concentrating on the international
market. We want our domestic established brand to go from
strong to stronger. Marketing and brand building activity in
international market is very expensive. In international market, we
are taking baby steps, small way towards expansion. In the Middle
East we sell our brands but we do not have strategic tie up as of
now. We do have plans in expanding in furnishings, kitchen, dining
linens, shopping bags and more.
TVC: Does your Company or as a matter of fact any company,
face any obstacles while putting up projects in India?
D.M.: Approval on conversion of land used to take unduly long
time and make projects unviable. Industrialists need to avail
Shri. Durgesh Mehta
Jt. Managing Director & CFO,
Bombay Dyeing
We had a chat with the affable Mr. Durgesh Mehta, Jt. Managing Director
& CFO of Bombay Dyeing regarding the Company & its affairs.
Bombay Dyeing Retail Store
23Textile Value Chain | July -Sept 2013
Interview
26. Aryan Silk Mills
Head Office : Andheri East ,
Factory : J-2, 2nd Floor,Shree Arihant Complex,Kalher, Bhiwandi, Thane - 421302.
Tel - 02522-646969 / 646901 | Mobile - 09324778264
email id : aryan.silkmills@gmail.com
Contact Person : Mr.Vineet Arya : 9324525002
Aryan Silk Mills is synonymous with
quality fabrics, FANCY fabrics…
Since 25 years Aryan silk Mills into
manufacturing blended fabrics in 58’’ width plain,
fancy shirting fabrics & has 65 dealers network in India.
“Feels like Cotton and looks like Linen”“Feels like Cotton and looks like Linen”“Feels like Cotton and looks like Linen”“Feels like Cotton and looks like Linen”“Feels like Cotton and looks like Linen”
ADVT.
services of multiple official agencies which is a major obstacle and
results in long delay in completion of projects.
Prompt availability of Infrastructure like power, water and effluent
treatment at the right time and pricing is a major hindrance.
Government initiative in TUFS scheme is very attractive.
Organizations should be able to get advantage from this scheme.
Financial institutes / Banks check the credibility of promoters &
owners. Today financial institutes record Textile Industry in the Low
Margin but Stable with Lesser Risk profile. So there isn’t much
problem getting finances from Banks. Of course, there are
companies, individuals who do speculation in raw material in
commodity market for Cotton and Yarn prices, where intrinsic
margin is very low. But Banks have norms and rules to control risks in
businesses.
TVC: How do you foresee the market for your products?
D.M.: There is maximum opportunity in Home textiles. Indian
consumer is upgrading themselves from low price, unbranded home
linen to branded home linen. Consumer tastes and preferences have
changed tremendously and are continuously changing.
Consumers want more variety in colour, texture, design and at the
same time want value for their money.
TVC: What is Bombay Dyeing’s USP for being competent and
competitive for many years?
D.M.: Our brand is known for Quality and Value for Money which
includes variety for every pocket, class, age group and education
level. Sustaining its quality and novelty is the biggest advantage and
challenge for Bombay Dyeing. We have a special design studio
where we get designs from leading designer Sabyasachi, Wendell
Rodriguez and also have tie ups with other designers. Wadia
Group’s USP is that they continually focus on innovation, make
competitive products which are relevant to the industry
Shri Durgesh Mehta assured that in a short period of time, with
our new CEO on board for our textiles segment, industry and
consumers will see amazing improvements in Bombay Dyeing.
Bombay Dyeing is a heritage that continues to inspire
generations of people across time and we are proud of being a
part of it.
CORPORATE PROFILE
28. FIBRE FOCUSBirla Spundyed Viscose Fibre –
An Eco Concept for Future Textile
Abstract
Viscose is the most preferred choice in case of knitwear
usually in blends with Spandex and as 100% Viscose. Excellent
colour brilliance, drape and luxurious feel are hallmarks of the
product. Yarn dyed and fabric dyed sorts are in vogue and form a
part of almost all leading brands. Spunshades is the spun dyed
Viscose fibre which gives excellent all round fastness with colour
uniformity. This paper deals with the study carried out at
TRADC to optimize the process parameters for spun dyed fibre
& the benefits comparison of spun dyed with the piece dyed
route fabrics as a key to success in textile.
Key words: Spun dyed Viscose, Spinning, Knitting, Dyeing.
Introduction:
Spundyed VSF of Birla Cellulose is coloured through mass
pigmentation and hence has the best colour fastness rating of
nearly 5 on 5 for wash/rub fastness and nearly 7 light fastness
rating. Spundyed VSF is a country advantageous product of India
and is available with leading spinners who export large quantities
of quality yarn. Knitwear with spun dyed VSF in 100% form as
well as in blends with Spandex ensure the same colour year after
year as the fibre base is fixed. There is absolutely no need for the
complicated colour matching operations and the batch to batch
variations will be avoided in case of spun dyed Viscose.
Spundyed knits are virtually free of barre problems. Spundyed
VSF is Oeko Tex certified and is eco friendly and biodegradable.
Sushil Hada, Ravinder Tuteja,
Ganesh Jadhav, Praveen Kumar
& Alkesh Darji
TRADC, Birla Cellulose. Birladham, Kharach, Gujarat.
Stock dyed fibre /
piece dyeing
Fig. A
Fabric / garment
printing
Spun dyed
Viscose
Pigment &
not Dyes
Above Figure A suggests the Symbolic comparison illustrates
Uniformity is maximum with excellent fastness in spun dyed
Viscose as injection of the pigment is at the viscose solution
stage. The coloration for piece dyeing & garment dyeing is only
at the surface, so the core remains un dyed giving poor fastness
properties. Also chances of batch to batch variations are more in
case of piece dyed fabrics.
SpunShades™ is the registered brand name for the spun dyed
viscose manufactured by Birla Cellulose. It is available in
150 shades with 69 standard shades. For knitwear's we have
shortlisted 13 regular shades which will be readily available to the
customers. Rest shades can be customized as per the customer
requirements.
Material & Methods:
Yarn Spinning
Spun dyed Viscose fibre has different surface characteristic
than the normal fibre. In case of spun dyed the fibre to fibre
friction is higher. Hence it is necessary to optimize the spinning
parameters to achieve the good yarn quality in terms of lesser
imperfections. 30s single ring yarn is identified for the project
trial. For the initial trial, we have selected 1.3 D X 38 mm spun
dyed Viscose Shade no. 9676 for the yarn manufacturing. As this
shade was showing higher imperfections, as per our previous
experience. Below mentioned table shows the fibre properties
for the fibre used for the trial:
Parameters
Denier X Cut Length
Shade No.
Denier
OPU %
Conditioned tenacity (Gms/Den)
Conditioned elongation%
1.3d x38 mm
9676
1.3 D
0.35 -0.38
2.58 – 2.61
18 – 20%
Values
Our main focus was to attack on the neps in the yarn. As blow
room & carding are the prime processes which are responsible
for the neps, we have optimized the process parameters for the
same.
Methodology followed for the optimization of Spundyed
viscose yarn at spinning stage is as mentioned below,
1) As compared to fibre opening through machine (MBO) the
hand opening is a gentle opening process. It helps to minimize
the fibre entanglements. So the hand opening was done.
2) Finer Lap and 4 thou wider gauge between lap feed plate to
licker-in improved fibre opening with less entanglement.
3) Higher flat PPSI, Closer setting of flats to cylinder & higher
flat speed improved carding & cleaning efficiency. Better yarn
quality was achieved by better carding action & cleaning
efficiency.
4) Drafting was improved by finer roving & slight wider spacer
at ring frame. It helped to improve short thin-thick faults in
association with less spindle speed.
5) The results achieved with 9676 spun shade are comparable
with the Uster 25% norms of normal greige viscose.
Knitting
A knitting trial was conducted with the perfected yarn to check
the knitting ability of the yarn & knitting efficiency on a single
jersey knitting m/c. Following mentioned were the knitting
machine parameters for the trial:
26 Textile Value Chain | July -Sept 2013
29. M/c Parameters
Below are the grey fabric parameters for the trial:
Wet Processing
Process route followed for the spun dyed fabric -
Results & Discussion:
Yarn Quality Reports –
M/c Make
M/c Diameter
M/c Gauge
M/c Speed (RPM)
Yarn Tension (CN)
Mayer & Cie Single jersey circular knitting m/c
30”
24
22 rpm
3 - 4
Details
M/c Parameters
Wales per Inch
Course per Inch
Stitch Length
Grey Fabric GSM
28
52
2.7 mm
126
Details
Greig Fabric
Pre wash
Scouring
Water
extration
Exhaust
finish
Washing &
Neutralising
Relax Drying
Compaction
(optional)
Fig. B
Process
Details
Uster Unevenness (%)
Uster Thin (-30 %)/Km
Uster Thin (-50%)/Km
Uster Thick(+35%) /Km
Uster Thick (+50%)/Km
Uster Neps (+200%)/Km
Total IPI/Km
RKM
8.72
NA
1
57
7
19
27
16.9
9.52
NA
2
35
13
34
49
15.5
10.4
NA
4
62
25
65
94
14.2
9.6
687
1
152
10
32
43
15.3
Uster 5% Uster 25% Uster 50% TRADC acheived
30s Normal Grey Viscose 30s Spundyed Viscose
Table no. 2
Fig. B & Fig. C shows the process route followed for the spun
dyed & piece dyed viscose fabrics for the study. All the wet
treatments done on the soft flow machines with MLR
1:10.Dyeing process is not required in case of spun dyed fabrics
giving huge water, time & energy (steam, power) savings.
Table 1 shows the process recipes & conditions maintained
during the study.
Piece Dyed Viscose process route:
Greig Fabric
Pre wash
Scouring
Pretreatment
Exhaust
finish
Washing
Dyeing
Washing &
Neutralising
Water
Extraction
Relax Dry
Compaction
(optional)
Fig. C
Process
Loading, Prewash
Post processes
Scouring
Pretreatment
Washing
Dyeing
Exhaust Finish
0.5 % washing agent at 70°C for 15 mins followed by
hot wash & cold wash cum neutralization.
Not Applicable
Not Applicable
Not Applicable
0.5% cationic softener at 50°C for 10 mins.
1 % washing agent & 3% caustic flakes at 95°C
for 20 mins.
1 % washing agent & 6% caustic flakes, 0.6% peroxide
stabilizer & 8% peroxide at 98°C for 60 mins.
1% Peroxide killer at 95°C for 20 mins followed by
hot wash, cold wash cum neutralization.
Cold wash, neutralization, 2 hot wash, 2 soaping, dye
fixing & rinsing.
2.0 % cationic softener at 50°C for 10 mins.
1% Lubricant & 1% wetting agent at 60°C for 10 min.
Hydro extraction, relax dry followed by compaction.
Spun Dyed Viscose Piece Dyed Viscose
Table no. 1
Process recipes & condition :
27Textile Value Chain | July -Sept 2013
FIBRE FOCUS
30. As per the Table no. 2 & the graphs, spun dyed Viscose yarn is
showing results comparable to the Uster 25% norms for 30s
normal Viscose yarn. All the testing done at controlled lab
conditions of 65% RH with 27±2°c temperature.
Fabric Quality Reports –
Spun dyed Viscose scores over piece dyed Viscose in terms of
chemical, water & energy cost as mentioned in the above table.
The costing done for the study carried out TRADC, Birla
Cellulose.
Conclusion:
From the above mentioned study, it can be summarized that
the spun dyed Viscose scores over piece dyed Viscose as below,
1. Reduction in processing cost due to shortened process
route.
2. Excellent all round fastness properties. As described earlier,
Viscose Spun dyed is dyed through pigment injection at fibre
manufacturing stage hence, giving excellent all round fastness
properties
3. No batch to batch variations in terms of shade.
4. Value for money owing to reduced cost of yarn dyeing in
Above mentioned table shows the benefits comparison of
spun dyed viscose fabrics over the piece dyed fabrics. As the
Spun dyed are manufactured by injecting pigments at the fibre
spinning stage, the fastness ratings for the Spun dyed fabrics are
excellent as compared to the piece dyed fabrics.
Colour fading Values –
case of auto stripers & yarn dyed sorts.
5. Yarn quality results comparable to 25% Uster norms for
normal Viscose.
6. Total Eco concept for future Textile being saving in water,
power, effluent load, higher productivity with improved product
quality.
Acknowledgments:
The Authors want to acknowledge the Birla Cellulose
management for providing the opportunity to carry out the
study at TRADC. (Textile Research and Application
Development Centre).
References:
1. www.birlacellulose.com
2. China Textile Science (June 2012) - Benefits of Spun dyed
Viscose fabrics over stock dyed fabrics & cotton fabrics.
Table no. 4
Original
After 1 wash
After 3 Wash
After 5 Wash
After 10 Wash
5
5
5
5
5
5
4-5
4
3-4
3
Spun Dyed ViscoseWash Sample Piece Dyed Viscose
Table no. 5
Chemical Cost Rs/Kg
Power Cost Rs/Kg
Water Cost Rs/Kg
ETP Cost Rs/Kg
Coal + Furnace oil Cost Rs/Kg
Total Cost Rs/kg
Total Water Used in Ltr/kg
Total Time in mins per batch
55.4
2.39
1.09
1.82
8.41
69.11
91
575
14.54
1.21
0.37
0.62
5.14
21.88
31
190
73.75
49.37
66.06
65.93
38.88
68.34
65.93
66.96
Piece Dyed ViscoseParameters Spun Dyed Viscose Percentage Saving
Table no. 3
Test
Fastness To Wash
Change in shade
Staining on Cotton
Fastness to Rubbing
Dry
Wet
5
5
5
4-5
4
4
3-4
3
IS
764 -1979
IS
766 - 1988
Spun Dyed
Viscose
Piece Dyed
Viscose
Test
Method
As per the above mentioned table, spun dyed Viscose shows no colour fading even after repetitive washings. Value 5 denotes no
colour fading & solid appearance where as 1 denotes poor colour fading & fuzzy appearance.
Process savings in Spundyed Viscose Knits -
Uster 5% Uster 25% Uster 50% Spun Dyed
Viscose
17
16
15
14
13
12
RKM
Uster 5% Uster 25% Uster 50% Spun Dyed
Viscose
Total IPI/Km
100
80
60
40
20
0
28 Textile Value Chain | July -Sept 2013
FIBRE FOCUS
REPRINTED DUE TO CORRECTION
32. In spite of a last
minute change in
v e n u e d u e t o
u n f o r e s e e n
circumstances, the twin
shows; Fabrics &
Accessories Trade
Show (F&A Show) and
India International
H o m e Te x t i l e
Exhibition (Homtex),
which concluded on
May 25, 2013, turned
out to be a highly
successful exhibition
with a majority of the
p a r t i c i p a n t s
a p p r e c i a t i n g t h e
superior, business-like
environment besides
the high quality of
visitors. The show was
held at the Bangalore International Exhibition Centre, Bangalore,
May 23 - 25, 2013.
“Even the number of visitors was not affected and we were able to
maintain it at the same level as that of last year’s,” said Mr P.
Krishnamurthy, CEO & Executive Director, S S Textile Media (Pvt)
Ltd, organizers of the events. A total of 124 exhibitors, besides a
separate Chinese pavilion, and 3,154 visitors from all over the
country besides countries like Japan, South Korea, Thailand,
Singapore, Mauritius, Sri Lanka, UAE, France, Spain, Brazil, UK, etc.
attended the show.
Exhibiting companies, once again, presented a top-class range of
textile products to highly qualified trade visitors from all over the
world. The show was therefore able to further develop its position
as India’s leading event and business barometer for the textiles and
accessories industry. F&A Show stands for innovation and quality
and attracts a highly international trade audience. The quota of
visitors from top management was very high; more than every
fourth visitor belonged to the management of a company or was the
owner of a company. Over two-thirds of all exhibitors were able to
fully or largely reach their target groups at the F&A Trade Show
2013, and the other one third at least partially. Besides approaching
new markets, important aims of exhibiting were attracting new
customers, product presentation and reuniting with old customer.
Excerpts from industrialists, entrepreneurs & alike who participated
in the successful show…
Mr Dhrub T. Panda, Textile Designer, Gayatri Design Studio,
Mumbai, said: “A lot of opportunities opened up for us. The show
has been very good with a lot of manufacturers and exporters
evincing keen interest in our activities.”
Mr Deendayal B. Jhanwar, Managing Director, Shree Ramkrishna
(Jhanwar) Texfab Pvt. Ltd., Ichalkaranji, noted: “The show was really
good for us; we were able to meet new customers and had visitors
from China, Korea, Sri Lanka and even Turkey. The people who
came to our stall were genuine and appreciated the range of our
new products displayed. The facilities at this location are also par
excellence.”
Mr Rakesh Patel, Proprietor, Satvah Creation, Ahmedabad, said:
“This is the first time I am participating at this show and I must say it
has been very effective. This is a good show with lots of quality
buyers. We even had buyers from Spain, France and Sri Lanka.”
Visitors too were extremely positive about the F&A Trade Show.
93% of the visitors rated the show as excellent and could find new
vendors from whom they could possibly source their requirements.
But said, they would have been with a few more stalls and variety
especially in the trims and accessories; and home décor segments.
Mr Koji Asai, Senior Leader, Flex Japan Co. Ltd., Tokyo, said: “The
show gave me an insight into what India had to offer, especially the
very interesting patchwork at Satvah, an exciting range of cottons
from Ramkrishna Group stalls.”
Mr Mandeep Singh, Senior Merchandiser, Global Brands, Li & Fung
(India) Pvt. Ltd., Gurgaon, noted: “The show is good with a lot of
fabrics. Overall, it’s been a good experience and I found some
interesting products at the Angel Group, Uflex stalls, especially, new
laces and trims. I wish there were a few more stalls.”
KEY RATES UNCHANGED: AEPC DISAPPOINTED WITH
RBI STAND
17th June 2013, Gurgaon
In the credit policy issued today, RBI has not touched the Key rates and
unchanged. In his reaction to RBI's monetary policy, Dr.A. Sakthivel,
Chairman - AEPC said Industry has been disappointed with RBI's Stand.
Apparel SMEs were expecting a rate cut of 0.5% which is mainly
required to remain competitive in the international market due to
higher interest rate. The median lending rates on pre-shipment Rupee
export credit upto 180 days ranged between 10.55 – 13% in end 2012
as compared to 10.75 – 12.88% in March, 2012. These remain high in
same range.
Dr. Sakthivel noted that in last financial year the Tirupur district banks
had fixed a credit target of Rs.3,661 crore, whereas the credit availed by
the units were only Rs.2,742 crore which is 75% of the target. Out
of Rs.70000 crores of garment exports, approx. Rs.52000 crores
exports is from SME sector (75%). The Industry is not able to take
credit at such high rates and losing its competitiveness in the world
market.
At the beginning of the 12th Plan period, the outstanding credit gap
for the MSME sector is estimated at 62%, which is estimated to
reduce to 43% in March, 2017 with the assumption of minimum
20%year-on-year credit growth to MSME sector. Thus rate cut is
necessary to achieve this and reduce gap. The figures truly reveal
that the units are reluctant to avail the credit due to higher interest
rate apart from market conditions.
The garment exporting units are expected to invest in product
development and also replace the old machineries to remain
productive and therefore, the credit needs are required to be
replenished at a flat rate of interest. AEPC has proposed a flat rate of
7.5% on pre and post shipment export credit under a separate
chapter for exports.
AEPC PRESS RELEASE
30 Textile Value Chain | July -Sept 2013
SHOW REPORT F & A Show & HOMTEX, TWIN SHOWS
