NEWS BRIEFSTextiles Minister K S Rao Inaugurates AEPCATDC Smart Bhawan The Union Minister of Textiles Dr. K S Rao inaugurated the AEPC-ATDC Smart Bhawan in Faridabad on September 26 . The AEPC-ATDC Bhawan and the new concept Knitwear Specialty Centre launched is a speaking example of Apparel Training and Design Centre (ATDC)’s commitment to the textiles industry. While inaugurating the Centre, Dr. Rao said that “the ATDC facilities created here for short and long-term training programmes and setting-up of the ATDC Knitwear Specialty Training Centre and the Textile Testing Lab is a very timely and significant step and will go a long way in improving the quality of training programmes along with helping this robust cluster in future strategies and growth.” Acknowledging the presence of domestic and export apparel manufacturing clusters in Faridabad, notching up around Rs. 3000 crore exports, the Minister emphasised the need for product diversification and skill development in the sector which at present lacks supply of skilled hands. The AEPC-ATDC ‘Smart Bhawan’ situated amidst a cluster of Apparel Export Units in Faridabad, which alone boast of Rs 3,000 crore worth apparel export potential, has over 50 apparel export units and 30 fabric processing units employing over 60,000 people in the cluster. In his keynote address, Dr. A. Sakthivel, Chairman, AEPC, ATDC & IAM, said, "I am happy to point out that at the AEPC-ATDC Smart Bhawan, India's 1st Knitwear Specialty Training Centre and 1st ATDC Textile Testing Lab in the NCR are being launched and this will serve the youth by giving them access to newly approved NCVT Curricula and stateof-the-art training infrastructure while extending services to the nearby ap- The Union Minister for Textiles, Dr. Kavuru Sambasiva Rao unveiling the plaque to inaugurate the AEPC-ATDC Smart Bhawan, in Faridabad on September 26, 2013. The Secretary, Ministry of Textiles, Ms. Zohra Chatterjee and the Chairman, AEPC, Dr. A. Sakthivel and Dr. Darlie O. Koshy, Director General IAM & ATDC, are also seen. The cluster of Apparel Export Units in Faridabad alone boasts of Rs 3,000 crore worth apparel export potential, has over 50 apparel export units and 30 fabric processing units employing over 60,000 people. India’s knitwear export market is growing rapidly. The knitwear production comprises of about 45% of the total exported volume of apparel. With around 5,000 knitwear factories already set up in India and many more foraying into knitwear production, numerous skilled hands will be required. parel industry cluster." Ms. Zohra Chatterji, Secretary, MoT, later released the NCVT approved curricula for knitwear course, trainers’ manual and trainers’ handbook. Ms. Chatterji observed that “India’s knitwear export market is growing rapidly as the knitwear production comprises of about 45% of the total exported volume of apparel. With around 5,000 knitwear factories already set up in India and many more foraying into knitwear production, numerous skilled hands will be required. In this regard, ATDC has taken timely steps to launch NCVT approved Knitwear Courses, Trainers’ manual and Trainees’ handbook, which will set a new direction and help apparel expor ters with Industry ready workforce.” NCM-OCTOBER 2013 85 In a bid to motivate the apparel factories in India for the adoption of training and implementation of AEPC DISHA, Dr. Rao distributed the DISHA adoption Certificates to the ‘DISHA Champions’. As of now, 320 units have been reached out for the training and implementation under project DISHA. 167 companies have completed the first phase of training and are ready for assessment. The six days training programme/ workshop aims at capacity building and greater awareness for the effective implementation of the programme. ‘DISHA Champions’ are the managers of the companies who are chosen from the employee pool which includes professionals from human resource, administration, sourcing and testing departments. 000 crore in less than three years. “We told them that we will give them money for training at the rate of Rs. where the farmers are marginal and small scale with the benefits of Mahatma Gandhi National Rural Employment Gurantee Act (MNREGA). 1. Dr Rao said that the Ministry has conveyed to the state government representatives to encourage investment in textile sector in various sectors including handloom. IR from 5 percent to 6 percent. product based world class infrastructure for the industry. for new shuttleless looms capital subsidy would be raised from 10 percent to 15 percent. Kavuru Sambasiva Rao chaired a Conference of State Ministers of Textiles held in Vigyan Bhawan recently. in August this year. Dr. Dr. After day-long discussions with the State Ministers and Secretaries of Textiles. The Union Minister for Textiles chairing the Conference of State Ministers of Textiles. Earlier. A major feature of the Scheme is that to promote indigenous manufacturing of the textile machinery.000 per trainee and they are very happy that they will undertake the training.” informed Dr. Dr. He was also happy to inform that “the production of yarn is beyond the requirements of the nation.5 crore. in New Delhi Conference.” He added that he has taken up this issue with the Finance Minister “and they are in support of it and I think we will be very soon getting budget for that also and construct a warehousing facility possibly in Uruguay by which the handicrafts exporters have assured me will double the exports from 17.000 to 34. The overall impact and progress of the scheme for integrated textile parks had been positive and the scheme had been successful in terms of leveraging private sector investment. there is a growing need for establishment of green field textile parks that would address both these constraints. employment generation and creation of needbased. Rao. Rao said that the Ministry has “decided to increase the production in sericulture from 23 thousand tons to 33 thousand by the end of 12th Plan”. after meeting committed liabilities of the sanctioned 61 parks. 50 crore has been allocated for this purpose.” Conference of State Ministers of Textiles held The Union Minister of Textiles Dr. the Cabinet Committee on Economic Affairs gave its approval for continuing the TUFS during the 12th Plan period with a major focus on powerlooms in accordance with the Budget announcement for the financial year 2013-14. Interest Reimbursement (IR) on second hand imported shuttleless looms shall be reduced from 5 percent to 2 percent. 10. Capital Subsidy from 10 percent to 15 percent and margin money subsidy from 20 percent to 30 percent with an increase in subsidy cap from Rs. Rao mentioned that “we should concentrate more on skills training. He was also happy to inform that “Union Minister for Rural Development Shri Jairam Ramesh has agreed to integrate sericulture workers.” Highlighting the issue of skills training. On the other hand. The Textiles Minister also informed the media that the Cotton Distribution Policy has been put before the cabinet. With the increasing costs of production in established clusters and heightened emphasis on environmental compliances. Rs. Speaking to media persons after the . 717 crore the balance left in the 12th Five Year Plan allocation.NEWS BRIEFS The Scheme for Integrated Textile Parks to Continue in the 12th Plan The Cabinet Committee on Economic Affairs has approved continuation of the scheme for Integrated Textile Parks (SITP) in the 12th Five Year Plan and sanction of new projects for utilizing Rs. handicraft etc.” He mentioned that the Ministry is “encouraging private institutions and industries” for the same.” The Minister added that in the recent past the handicrafts exporters conNCM-OCTOBER 2013 86 veyed to him that “they wanted a warehousing facility in one of the countries of Latin America costing about 100200 crores which would be spent in about five years. 1 crore to Rs. Rao said that the Technology Upgradation Fund Scheme (TUFS) has been notified. The CCEA also approved additional grant of Rs. 10 crore to be given to existing parks for setting up apparel manufacturing units. the Minister said: “This unit is 100 per cent export-oriented. Stressing the need for a boom in the sector. We have organised fairs last month. Rao said while responding to the employees’ demand for higher salaries and regularisation of services. The central government announces Rs. Sambasiva Rao.which was accepted by the Padmanabhan Committee .a Rs 260-crore composite unit for spinning and garmenting . “I will provide funds to train labourers. the Union Minister inaugurated Kaleeswarar B Unit of National Textile Corporation. “People living around the industrial area have been complaining about water resources being polluted following the discharge of untreated waste into it.D. we went to BSM New York and Spain and we got the positive signals of the revival of the economy in USA and EU. Dr Sakthivel assured that with the support of the Government we would be meeting the export target.000 crore as a special textile package to Karnataka for the revival of nine spinning mills and converting cooperative loans given to beneficiaries into equity shares.95% registering to the 1.1. on October 06. I will ask them to share it with the employees. "Of the total amount. The former Prime Minister H. The unit has been set up to export shirts under NTC brand 'Entyce' to the US and Europe markets.” Mr.S. MLA. to put exports in the priority sector . The Minister was in Hassan to inaugurate New Minerva Mill . “Apparel Exports for the month of September 2013 grew by 14. the value of rupee will also go up”. 170 crore to set up a processing unit on the campus.” Requesting the Government.11 billion US $ for September 2013.000crore textile package for Karnataka Bangalore : The central government has granted Rs. he said.” he said. This is the sixth consecutive months where garment exports grew at an average of 13%. The Minister promised the employees that he would sanction Rs. Once you develop skills. Earlier this month. This is the first unit of state-owned NTC which is located in an SEZ.5% for the month of April. Ports and Inland Water Transports Minister NCM-OCTOBER 2013 87 . He also appealed to the labourers to work towards increasing profit. Deve Gowda. “If the industry makes profit. If our textile units do well. the Exports led employment grew by 6. Dr A Sakthivel has expressed happiness over the growth of exports.” he said. you need not have to struggle to get your jobs regularised. in Sivaganga.1. Prakash.95% in September Hassan. H. who was elected from Hassan Lok Sabha constituency in 2004. 2013. asks textile employees to develop skills 2013 : AEPC K. stressed the need for treating effluents." said state Textiles. Sakthivel said.10 crore will be paid towards dues raised from state run banks to build the integrated textile park at Doddaballapur near Bangalore and to set up textile parks and skill development centres across the state. The value of Indian rupee has dipped with the decrease in export of Indian products.in the Special Economic Zone. Rs.. of a textile mill owned by the National Textiles Corporation (NTC) in Hassan (150 kms from Bangalore) to develop skills for higher salaries and better job opportunities. No industry will opt to lose its skilled labourers. Lauding the efforts of the expor ters and Government Dr.).to solve the problem of credit crunch for the Industry. has called upon employees Chairman AEPC. Union Minister for Textiles.June 2013 (Labour Bureau Quarterly Reports July 2013. Your salaries and emoluments will grow as long as the industry earns profit. There are 550 workers in the spinning and garmenting unit. said the SEZ was sanctioned to Hassan during his tenure.NEWS BRIEFS Apparel Exports Grow by Union Textiles Minister opens New Minerva Mill in 14. Even. The company will regularise your services if you exhibit your skills. 56 lakh now. 33.55% of all India) and further decreased from 1." the minister noted. Loom population reported in 2009-10 was 1.32 lakh has been waived off in respect of 4 Banks and recapitalization of one Apex society for Rs. As reported in the Census. Shilp Guru Award.00 crore over a period of 4 years from 2013-14 for generating a target of new employment to 46933 families with an additional area of 1. Manipur is a non-powerloom State. there are 1.NEWS BRIEFS Baburao Chinchansoor in a statement from New Delhi. etc.e. The Ministry of Textiles has been providing pension to the State Awardees @ Rs. it is proposed to introduce the scheme for setting up of Mega Handloom Cluster as a national scheme instead of Declare Mega Handloom Cluster as a National scheme. The state textiles ministry plans to set up an international textile park at Yadgir and a skill development centre at Gulbarga in the northeast region of the state with funds from the special package. about 60% of the total weavers of the country are inhabited in the North Eastern Region. The cumulative physical achievement of all four verities till the end of 2011-12 was 1641. (i) Tasar. says Manipur Minister The State Government proposed the Ministry of Textiles for implementation of the Manipur Sericulture Project Phase-II at the cost of Rs. Because of this unique advantage of Manipur. Bima Yojana. One Urban Haat is developing. . of cluster projects and 347 Nos.00 lakh to set up a Powerloom & Allied Service Centre for promotion and training of weavers in Manipur. Equipment subNCM-OCTOBER 2013 88 sidy to ex-trainees. 299.102. 000 hectares. The minister participated in a day-long conference of state textile ministers in New Delhi. Modernization of Handicrafts.16 lakh in 1995-96 (which shared 8.24 lakh under Revival Package. a total of 570 individual weavers at the cost of Rs. namely. 188 Nos.90 lakh which is expected to be around 2. outstanding loan of Rs.90 crore till the end of 2011-12. As per the National Handloom Census 2009-10. The State is currently implementing 66 Nos.27 crore approx. (ii) Mulberry. pay arrears of incentives and subsidies to investors. Manipur Minister of Commerce and Industries and Sericulture Govindas Konthoujam attended the State Textiles Ministers’ conference held at Vigyan Bhawan in New Delhi with Union Minister of Textiles. it is expected to be around 5.313. Though.1. a reasonable level of resource input and structural attention. 2009-10. In addition.214. So far. Handicrafts and Sericulture. after attaining the age of 60 years till death. Major common activities under the Textile Sector are Handlooms. The handloom sector in Manipur is indeed capable of exponential growth. namely. of group approach projects under Integrated Handloom Development Scheme from 2007-08 till date covering 33000 weavers directly and 8800 weavers indirectly with a total project cost of Rs. of Craftspersons have been awarded since 1979-80.291.79 lakh Handloom Households (sharing 6. So far. "The funds will also be used to train unemployed youth in skills required by handloom and powerloom units.04 lakh in 2009-10. Under this programe. Technological & Marketing Intervention. 1700 Hectares was added under Mulberry.p. The State Govt. Govt.000/. he presented his state's expectations from the MoT.87 MT for a value of Rs.00 lakh in 2012-13 as compared to 4.1.92 lakh in 1987-88. In his speech at the meeting. The Ministry of Textiles also sanctioned Rs. Ambedkar Hastshilp Vikas Yojana. Japan Bank of International Co-operation (JBIC) funded the Phase-I Programme of Silk development during 1998-2008.43% of all India) which is far decreased from 2.06 crore has been incurred out of Rs. had installed three powerlooms including one shuttleless and one sectional warping machine in Imphal. Product Development Programme for Exports. Manipur's Proposal As a tradition. 38. Manipur is one of the unique States in the country where four varieties of silk are grown.37 lakh in 1987-88." Chinchansoor said. with proper identification of its needs. the Ministry of Finance. Therefore. Hand weaving forms a part of socio-cultural tradition of Manipur and a large population depends on handloom for livelihood. (iii) Eri and (iv) Muga. Handicrafts Industry is one of the important traditional Industries in the State having its own unique identity amongst the various crafts of the country.m. "A part of the grant will be used to increase minimum wage for poor weavers. Rajiv Gandhi Shilpi Swasthya Bima Yojana. The Ministry of Textiles sanctioned various Central Plan Schemes through the branch offices of DC (Handicrafts). Dr Kavuru Sambasiva Rao in the chair. So far. Garmenting.48 crore have been given benefit under Weavers’ Credit Cards. The State Government gives State Awards to outstanding craftspersons. Also 51135 weavers under Health Insurance and 17000 weavers under Mahatma Gandhi Bunkar Bima Yojana.92 crore.94. of India usually announced the package for setting up of Mega Handloom Cluster in India. i. Rs. Integrated Design Development Projects. the handloom workers reported as 2. Development of Kouna (water reed) products.63 lakh in 1995-96 and 3. The state has a workforce of approximately 55. The state has over 100 Skill Development Centers and 240 private training centers. Earlier at the function. Its silk exports constitute 24% of the total value of silk goods exported from India. India produced 350 lakh bales of cotton and this year. IAS and Deputy Director of Industries Kaphunchung Lamlee Kamei accompanied the Minister in the Conference. This was announced by Union Textiles Minister Kavuru Sambasiva Rao in Gulbarga during his recent visit. Rao said that the Gulbarga textile park. Approximately 386.00 crore over a period of 4 years from 2013-14 for generating a target of new employment to 46933 families with an additional area of 1. The State is also contemplating to set up one more Urban Haat at Bishnupur District.000 weaver families with handlooms and over one million powerlooms. He said practice by the state needed to be improved from tradition to modern technology for large scale production. He also urged the union ministry to setup an Indian Institute of Handloom Technology (IIHT) in Nagaland at the earliest. Union Textiles Ministry Okays Textile Parks for Bellary and Yadgir in Karnataka Skill development centre for textile workers planned for Gulbarga Gulbarga : The Union Textiles Ministry has agreed to start new textile parks in Yadgir and Bellary and a skill development centre in Gulbarga for building capacity of workers engaged in textile production. NCM-OCTOBER 2013 89 Nagaland seeks a centralized yarn depot at Dimapur Nagaland's Minister for Commerce and Industries S. A 48-acre Integrated Textile Park at Dodaballapur housES 85 textile units and over 700 powerlooms.000 manufacturing units are engaged at the organized and unorganized level. The domestic requirement of cotton is 290 lakh bales and the remaining is being exported. He was speaking to reporters after laying the foundation stone for basic infrastructure facilities at the Gulbarga textile park at the Nandur-Kesaratagi Industrial Estate on Shahabad Road.291. of India. Manipur Commerce Industries Director B John Tlangtinkhuma. the minister said. Pangnyu Phom. the production is expected to reach 370 lakh bales. He said that the yarn supply scheme urgently need a centralized depot at Dimapur for better transportation and distribution to the weavers in the state. Karnataka produces over 20% of the national garment production and 45% of the national raw silk production. the minister said any textile park can export 90 per cent of its products.000 crore annually as there is a stress on skill development there. he denied that cotton production had come down in the country. Railway Minister Mallikarjuna Kharge made a demand for textiles parks at Yadgir and Bellary and a skill development centre in Gulbarga. If necessary skills are imparted to the workers.NEWS BRIEFS Budget Announcement subject to the minimum of 50000 weavers population of the State concerned as the minimum criteria. “When the Gulbarga park starts operations. 000 hectares. The minister said that in view of the tremendous potential for export of garments and apparels. coming up on 50 acres of land with an investment of Rs 100 crore initially. Asked whether a fully 100 per cent export oriented textile park could be started. . the textile products will have greater demand everywhere. The State Government has proposed the Ministry of Textiles for implementation of the Manipur Sericulture Project Phase-II at the cost of Rs. has excellent opportunities for exporting garments. He said there was a dire need to develop the districts of the backward Hyderabad-Karnataka region industrially and promised to offer any help and assistance that is required to achieve the goals.” Rao said. He pointed out that Moradabad district in Uttar Pradesh alone exports handicrafts worth Rs 4. it should be able to export garments worth Rs 200 crore annually and the capacity can be enhanced further. who attended the Conference of State Ministers of Textiles in New Delhi. Similar success can be achieved by textile parks also. The products of the park should be competitive and in tune with the changing needs and tastes of the people all over the world. but also equip the workers with the necessary skills in tune with the modern needs. The State Government is taking up initiative for implementation of Mega Handicrafts Clusters in Manipur with the financial assistance of the Ministry of Textiles. Govt. it had not only become imperative to open more textile parks. Replying to a question. Last year. spoke about the important needs of the state in the sector of handloom which was traditionally handwoven and natural fabric items. Ladia. as garments don’t require water at all. as there is huge demand and value addition for apparel products for their exports. Managing Director of Sangam India Ltd. the Council is organizing abroad. SRTEPC Chairman. “Future of ManMade Fibre Textile Exports – Potential & challenges in Bhilwara”. Others on the dais are (from the left to right) Shri S. since there are facilities for spinning. Though we have all the necessary resources for garmenting. speaking at the seminar. and also land is less required – only input which is to be managed is labourers. However. Rajasthan on 7th September.. Scope for exports of Technical Textiles in India . Bhilwara is also contributing to exports. and I do hope that this Seminar will be in- Chief Guest Shri Sujit Gulati. Besides. “Bhilwara is a major Centre for textile production in India. Immediate Past Chairman of SRTEPC. Ministry of Textiles He also informed that India is lagging behind in exports of readymade garments from countries like Bangladesh. Das. which can contribute to the national export endeavor. and “Role of SRTEPC in promoting exports”. He also informed them about the promotional programmes. Director. Das. Chairman of SRTEPC. requested the participants to become members of the Council and contribute to the National Export Endeavor.S.N. Shri Rakesh Mehra & Shri S. Director. Joint Secretary. MoT. Ministry of Textiles. in association with the Mewar Chamber of Commerce & Industry. Shri Sujit Gulati. SRTEPC Shri Sujit Gulati Joint Secretary. Shri Sujit Gulati.S. Joint Secretary. of India was the Chief Guest. “Scope for production & Exports of Technical Textiles”.NEWS BRIEFS SRTEPC. Sri Lanka and Vietnam. 2013 with the support of Mewar Chamber of Commerce & Industry (MCCI). The objective of the Seminar was to create an awareness amongst the member-exporters of the region about the latest trends and developments in various fields relating to exports of Man-Made Fibre Textiles. Shri S. especially MMF textiles. Secretary General of MCCI. On this occasion. while Shri S. Modani. exporters and media persons. chaired the Seminar. Hon. Ministry of Textiles. no attention is given on value-addition. which are provided to eligible members of the Council to help them meet a part of their costs for participation in exhibitions abroad. organise Seminar On Exports in Bhilwara The The Synthetic & Rayon Textiles Export Promotion Council (SRTEPC) Council organized a Seminar on “ManMade Fibre Textile Industry & Exports” in Bhilwara. The Seminar was held at the LNJ Hall of the Mewar Chamber of Commerce & Industry. Shri Rakesh Mehra in his welcome address said. ‘‘Trends and Changing Scenario in International Marketing of MMF Textiles”. MoT (third from left).P. Shri Rakesh Mehra. NCM-OCTOBER 2013 90 Shri Rakesh Mehra Chairman. Following presentations were made on topical issues such as. Nathany. companies need to move ahead for garmenting. The Seminar started by lighting a lamp and with floral welcome.” In his presentation on “Role of SRTEPC in Promoting Exports”. Joint Secretary. strumental in bringing more companies to the export field. and was attended by a large number of manufacturers. Shri Vinod K. and Market Development Assistance (MDA) reimbursements. there is huge untapped potential. Ministry of Textiles in his inaugural address said that in Bhilwara. Shri Mehra briefed the participants about the Council’s various services to Indian companies of textiles for helping them develop their export-base of MMF textiles. Govt. was the Guest of Honour. weaving & processing. therefore. He. advised the participants to move into these areas -. Das. He added that though India is the second largest textile economy after China. Comparing India with China.enhancing the value of their exporttrade exponentially. in his PowerPoint Presentation on “Trends and changing Scenario in International Marketing of MMF Textiles” showcased to the participants about the widening scope for exports of home textiles. Ladia.5%. technical textiles and apparel products. However Views of the Audience at the Seminar on “ManMade Fibre Textile Industry & Exports” in Bhilwara NCM-OCTOBER 2013 91 . and it is expected to reach to Rs. Director of Textiles in his Presentation on Technical Textiles informed the participants that the size of the global market of technical textiles was Rs. Director. Shri Das requested the participants to develop their textile-base in this fastest growing segment of technical textiles in India.S.48 lakh crores by the year 2012-13 with an annual growth rate of 3.99 lakh crores for the year 2010. it also gives huge attention to promote exports of Man-Made textiles. Considering this huge unrealized potential.NEWS BRIEFS Shri S.S. therefore. Ministry of Textiles Shri S. immediate Past Chairman of SRTEPC. Shri Ladia said that though China too is a big producer & exporter of cotton like India. 6. its contribution in global technical textile industry is only 9% to the total consumption. Das. Shri Vinod K. 7. durries. druggets and carpets.N. These units. druggets and carpets. immediate past chairman. Joint Director of SRTEPC. cushion covers.000 to Rs 25. Hooda assured traders that the government would favourably consider their demand for further relief in filling VAT-D 3 Form. He said the government had already increased the limit for this form from Rs 10. small and medium-scale textile units in Panipat. The textile products on which VAT has been reduced included pillow covers sold with bedsheets. Shri Modani also emphasized the need to have training.N. cotton floor durries and rugs from 12. Modani. Small textile units in Haryana oppose imposition of VAT These units. cotton and woollen durries. Shri Ladia said that there is urgent need of fibre neutral policy and attention of the Government for the development of this highly potential segment. and electric-supply centers for the faster development of export-base in Bhilwara. which make rugs. He added that MMF textiles is the highest taxed in the textile value chain. have already seen their margins squeezed by the escalating cost of power. Modani. Government should create an “Integrated Shri S. SRTEPC. labour and raw material. labour and raw material Micro. Addressing representatives of various trade unions Chandigarh.000 .5 per cent to 5 per cent. informed the par ticipants that Bhilwara. druggets. which were answered by the panel of speakers. Textile Development Centre” with a single window clearance facility. In his presentation on “Future of Man-Made Fibre Textile Exports – Potential & Challenges in Bhilwara”. The Seminar ended with a vote of thanks by Shri Srijib Roy. Man-Made Fibre sector is yet to get adequate focus of our Govt. comforters. also known as “Textile City of India”. have already seen their margins squeezed by the escalating cost of power. The Presentations during the Seminar were followed by questions raised by the members of the audience. Shri Vinod K. Managing Director. the textile cluster of Haryana. is the leading manufacturer/ exporter of world-class suitings & yarn. Managing Director of Sangam (India) Ltd. M/s Sangam India Ltd. woollens. bolster covers and ready to use curtains. in India. Ladia. Shri S.NEWS BRIEFS Participants in the Seminar speaking during the Question-Answer session VAT on textile products and carpets. cotton and woollen durries. He said that for the development of Textile Industry in Bhilwara. are up in arms over the imposition of Value Added Tax. Haryana slashes VAT on textile products Chandigarh : Chief Minister Bhupinder Singh Hooda announced reduction in NCM-OCTOBER 2013 92 . which make rugs. duvet covers. This would benefit the traders to the tune of about Rs 150 crore. The exemption from VAT under conditional entries Handmade Pochampally Ikat : Weavers struggling for success Weavers in and around Pochampally village got together in 2007 to keep their traditional weave. gives their Ikat fabrics a distinct identity. "There has been no tax on small textile firms since the inception of the Panipat cluster.NEWS BRIEFS They want a roll-back of the tax. So. three people work with the yarn. In 2011. Most of them. was jointly set up by 33 weavers with the help of the AP government. were exempted from AED. micro. one of the entrepreneurs. Now it has been reduced to five per cent. “We set up 500 looms but started working with about 350. and sugar is in the process of being brought into the ambit. it takes a weaver about four days to make one saree. None of them studied beyond Class X. Their venture now employs 380 people. According to Anjaiah K. so they become liable for local sales tax and VAT has also been imposed. but the working capital had to come from us. units producing sugar. On average. small and medium-scale category. take on other roles as well. A Pochampally Ikat exhibition was held in Bangalore recently. About 80 per cent of units in Panipat are in the cottage. We met Haryana Chief Minister Bhupinder Singh Hooda and asked for a complete roll-back. and point out that units making similar products in Gujarat and Rajasthan are tax-exempt. among other goods. about 60 kilometres from Hyderabad — a location central to the 22 weaving villages.5 per cent VAT on us. to- bacco and textiles. design and colours for about 20 days to get it ready to be woven. in the Telangana region. The government loan covered the building and infrastructure costs. said. including Pochampally. The popularity of the designs has had large-scale manufactures copying them in the mechanised looms and mass producing them at much lower prices. According to the excise and taxation department of Haryana the Union government has exempted units that are liable for Additional Excise Duty (AED) from paying local sales tax. About two months back there were reports of a 12. The textile technique involves making patterns by tying and dyeing the yarn prior to weaving. and he asked for time to understand the matter. vice president of the Federation of Small Scale Industries of Panipat. A large-scale Pochampally handloom unit at Kanumukkala. “We can only make about 7 sarees with one warp (In weaving cloth. when there was no tax. are exempt from all taxes. alive and safe. VAT has already been imposed on tobacco. from marketing to selling. where is the scope to reduce it?" He added that small textile companies. quite labour intensive. expert weavers. Before that. the warp is the set of lengthwise yarns that are held in tension on a loom). all associations in Panipat have united to oppose this decision. But the question is.” Pochampally Ikat is the turf of weavers from around 22 villages. which they fear may lead to the closure of many small enterprises. This unique process. The going is still tough after six years.” Anjaiah recalls. having investment of up to Rs 1 crore in plant and machinery. for which we did not get a notification. handmade Pochampally Ikat. NCM-OCTOBER 2013 93 . Birender Rawal. all from the weaving community. " he added. hiring an advocate and filing a return is both cumbersome and unaffordable. as the textile industry in Surat is making heavy losses every day following the violent protests in coastal Andhra Pradesh. Ram Niwas Jindal. Punjab. Protest was staged under the banner of Textile Hosiery Kaamgaar Union. It is estimated that with every passNCM-OCTOBER 2013 94 Arun Jariwala Ajoy Bhattacharya Andhra Pradesh accounts for 20 per cent of Surat's total annual business of Rs 40." the official said. We graduated from handlooms to powerlooms but our inherent strengths are too small to add capacities. as consignments stalled just before Diwali festivities Surat industries supply synthetic fabric including dress materials.badly hit by Telangana tile units went on strike demanding among other things 30 per cent in. Workers of Ludhiana textile units seek 30 per cent increase in wages Surat Textile Business Ludhiana : The workers of local tex. the Union president Rajwinder said inflation is on rise and profits of the industries are also increasing but wages of the workers are not being increased. .NEWS BRIEFS (textiles fall under this category of the VAT Act) is liable for Classified Tax of 12. "The manufacture of bare textiles is tax-free but the manufacture of value added or made-ups is liable for tax and the government has now kept it at a lower rate of VAT (five to six per cent). He regretted that there exists no Labour Laws in the local textile units. They held a protest dharna at the PUDA Grounds in Ludhiana. "We switched from handloom to power looms due to labour shortage. bonus and implementation complete of Labour Laws. The impact of the ongoing turmoil over Telangana has spilled over to Gujarat. Further.protests crease in wages/piece rate. Handlooms are tax exempt.5 per cent. Surat’s textile industry is losing Rs 2025 crore each day. But our scale of operation is low. as we do not have resources and market linkages to increase scale. he said an agreement has already arrived between the workers and the 38 textile units and the latter have agreed to increase 15-20 per cent rise in wages/piece rate and the workers of remaining textile units are forced to launch an agitation. Such decisions of government would lead to closure of several units. Textile workers of Ludhiana textile units staging protest ing they had already submitted their charter of demands to the employers concerned. said that most entrepreneurs in Panipat cater to the local market. Seeking a tax account number. saris and home textiles to the customers in Andhra Pradesh as well as some other parts of South India. Speaking on the occasion.000 cr. He revealed that strike was started in 32 textile units on October 4 and today the strike was entered into a total 36 units. He regretted that the Department of Labour was completely doing favour to the owners of the textile units. a senior member of the Blankets Association of Panipat. He said the workers want justice with regard to their long-pending demands. addThe industry is losing Rs 20 crore a day. Known as a hub for synthetic textiles. thereby causing a loss to the tune of Rs 600 crore just before the beginning of festivities. Surat’s textile industry is losing Rs 20-25 crore each day. .NEWS BRIEFS ing day of strikes and violent protests in the region.000 crore from Andhra Pradesh alone. the Surat-based industry gets 20 per cent of its total annual business of Rs 40. NCM-OCTOBER 2013 95 Textile business has been affected for over a month. liabilities and including all licenses. Head. permits. 2013. 2013 as a going . Ltd. Further. Thane to Renaissance Industrial & Warehousing Complex situate at Village Vashere. Spice Sarl. Maharashtra.” said Dr. This move has been designed to focus on our key businesses to ensure that Clariant in India provides maximum NCM-OCTOBER 2013 96 Dr. 2013. Clariant Chemicals (India) Ltd sells the business of textile chemicals. being the heart of the cotton producing region in Andhra Pradesh.” said Mr. South Gujarat Chamber of Commerce and Industry. Clariant's divestment of the above business includes a Textile Chemical plant situated at Roha. Sandeep Puri. concern and has received the total consideration of Rs. Deepak Parikh value to all our stakeholders. past president. an affiliate of S. multi-product production facilities and the textile chemical plant occupies a minor proportion in the overall site. Capital Partners. 209.since the festive season is approaching. the textile industry has also expressed uncertainty over the new taxes and laws that the new state will implement. paper specialties and emulsions to Archroma India Pvt.” “Repositioning the company’s portfolio is an essential part of Clariant’s 2015 profitable growth strategy.K. Vice-Chairman & Managing Director of Clariant Chemicals (India) Limited. Clariant and Archroma have entered into business continuation agreement whereby Clariant will run the business for a transitor y period in Trust for Archroma.” said Ajoy Bhattacharya. Clariant Chemicals (India) Ltd has informed the Bombay Stock Exchange (BSE) that pursuant to approval by the Board at its meeting held on September 19. We will continue leveraging our global expertise and innovation capabilities in India to strengthen and increase profitability. R.” Clariant to relocate the Masterbatches Plant from Kolshet to Bhiwandi The Board has also approved relocation of the Masterbatches Plant of the Company from Kolshet. as Vijayawada is the major centre for warehousing and transit of goods. the Board of Directors of Clariant at its meeting held Sept. had considered and approved the sale of the undertaking comprising of business of textile chemicals. The disturbance is also affecting consignments destined for Tamil Nadu. They are waiting for the violence to end and return of the normalcy.” said Mr. Shah. The new facility will enable Clariant to introduce latest technologies & systems to its customers at an even quicker pace than before and generate value with cutting-edge innovations and highly customised local solutions through global best practices. Ltd. the textiles industry being labour intensive would be politically more sensitive than other sectors.K.15 crores. assets. it is a peak time for business. a US based private Investment Firm. Masterbatches business in India. Ltd. Chairman of the Board of Directors for Clariant Chemicals (India) Limited. The Roha site has multi-business. Deepak Parikh. 209. “Our vision is to further sharpen Clariant’s competitive edge as we concentrate on growing our core businesses. The new plant will be operationally effective from December 2013. Every state wants to develop its textile industry.” stated Dr.an industry veteran and an industrialist himself in Surat . paper specialties and emulsions along with employees. “This move is to primarily expand production capacities and build a fully refurbished and modern production unit under one roof.15 cr and on the terms and conditions stated in the Business Transfer Agreement. for a total consideration of Rs. policies of the newly created state will play a crucial role. and we agree that this move will best put Clariant in India on the path for continued growth and development. 19. “This move will help Clariant further improve its market presence and strengthen its position in India. as on Sept. being owned by S. 30. land leases.. This might pose a challenge for suppliers in Gujarat. has an advantage to develop its own textile industry. “The Board is committed to delivering the performance that our stakeholders expect of us. “We are excited to continue crystallizing our businesses and are putting a strong emphasis on advancing our stakeholders’ interests. 1956. “In the long run. paper specialties and emulsions to Archroma India Pvt. Trade with Andhra Pradesh is almost stalled. Earlier. consents and approvals thereto as a going concern by way of a slump sale on an "as is where is basis" to Archroma India Pvt. District Thane. as on September 30.A.Textile traders are cautious about making fresh business moves as uncertainty continues to linger over the prospects of trade with Telangana and Seemandhra. a company incorporated in India under the Companies Act. And Telangana. Parikh. According to Bhattacharya. Taluka Bhiwandi.NEWS BRIEFS According to Arun Jariwala . 2013 the Company has sold/ transferred the business of textile chemicals. Philip Crosby NCM-OCTOBER 2013 97 .NEWS BRIEFS Quality has to be caused. not controlled. . “I’m proud to join a company with a 120-year long history of providing a portfolio of worldclass products and driven by a team of highly talented people who bring fresh thinking and ideas to an industry hungry for innovation. chemicals and healthcare sectors. In addition. and in his most recent position was President & CEO of DSM Pharmaceutical Products.NEWS BRIEFS 'Archroma' to come to life : Former textile. adhesives. “We’re open for business with a new name and a financially strong and knowledgeable parent who believes in our technology. To be combined into a single entity at close. the newly recruited senior leadership team will seek to generate a renewed sense of purpose and vision. “With SK Capital. Archroma will continue to deliver specialized performance and color solutions to the textile. Paper Solutions and Emulsion Products businesses of Clariant.” “The transaction closing comes after a thorough preparation to ensure a seamless transition of the businesses from Clariant to new ownership.S. ICI. The three businesses were acquired today by SK Capital Partners. paper and emulsions businesses of Clariant were acquired today by SK Capital Partners Archroma begins new era in delivering color and specialty chemicals to textile. pharmaceutical and process industry experience. To be led by CEO Alexander Wessels. coatings and construction industries. paper. a global pharmaceutical ingredients and contract manufacturing organization. and will work closely with the current heads of the three businesses acquired from Clariant. and both an MSM and MBA from the Krannert Business School of Purdue University in the US and Tilburg University. Quest International.” says new CEO Alexander Wessels. and as Executive Committee Member of Campina. we strengthen our business and further improve our offering to our customers. based private investment firm with a disciplined focus on the specialty materials.” Wessels added. brand and leading market positions. a U. paper. He has spent the past seven years at Royal DSM NV. whose unique understanding of their markets and customers has advanced the strategic positioning of Archroma. we believe that realigning the three businesses into a single integrated. adhesives. Previously. he held various management and executive positions at Unilever. in the Netherlands. We have all the right cards in our Alexander Wessels Chief Executive Officer (CEO) Alexander “Xander” Wessels joins Archroma with almost 25 years of chemical. market-focused and dynamic company will benefit both our employees and our customers. NCM-OCTOBER 2013 98 . Mr Wessels holds an MSc in Molecular Sciences from Wageningen University in the Netherlands. coatings and construction industries Reinach : Archroma is delighted to announce its official launch today as a newly formed global color and specialty chemicals company that comprises the former Textile Specialties. Cotton. Dyeing & Finishing of Polyester. LTD. Ahmedabad. The company has a new name and new ownership. TEXTILE PROCESSORS. Vinzol Road. reliability. a global footprint and a commitment to sustainability. Phase II. Knits & Blended Fabrics. technical expertise. EXPORTERS & IMPORTERS Bleaching.com hand. We know who we are and what we offer to our customers – innovation. Phone : +91 -79-25830271/25896372 Fax : +91-79-25830271 Mobile : +919825006354 E-mail :bosmiap@yahoo. performance. Printing.C. G.” Archroma will be headquartered in Switzerland along with the management team of Archroma’s Paper Solutions Business. Vatwa. NCM-OCTOBER 2013 99 . The Textile Specialties Business will be managed from Singapore and the Emulsion Products Busi- ness from Brazil. yet one thing that has not changed is the passion and commitment to excellence.382 445 INDIA.I. Width up to 58” 302/1.NEWS BRIEFS MEGHDOOT SILK MILLS PVT.D. quality. Archroma’s Textile Specialties Business plays a key role throughout the entire textile supply chain. special coatings and strength for all kind of papers. adhesives and construction. Archroma. a German chemical company. Clariant acquired the speciality chemicals business of Hoechst. leather and paper industries. a chemical company which was established in Basel in 1886. Archroma have amassed knowledge and experience of chemistry and industry spanning more than 120 years. Paper Solutions: Archroma’s Paper Solutions Business provides expertise in the management of whiteness. NCM-OCTOBER 2013 100 . Some of the carrier gases used are Helium. Lal Bahadur Shastri Marg. polymer films. and operates with approximately 3000 employees over 35 countries. paper and emulsions businesses of Clariant. and will continue to develop color and performance materials to serve its customers’ ever changing needs. Argon and Nitrogen. please contact : The Director. - - The above facilities are available for carrying out R & D and specific trials for the industry. coloration. 35 countries and 3 businesses to come together in a new company to better meet customer needs. application development. Up to 50 cm width of materials is treated. MUMBAI – 400 086 Tel : 022-2500 3651 Fax: 022-2500 0459 E-mail: btra@vsnl. with special chemicals for pre-treatment. Archroma is headquartered in Reinach near Basel. linings are treated in continuous length. Materials such as fabric. process technologies and services with world class quality and technical support. Ghatkopar (W). Archroma offers its global customers a reliable and long term commitment to developing new product solutions. Its salient features are as follows.com words “arch” and “chroma”. 25 production sites. a new name with a trusted heritage Pronounced Ahr-kroh-mah. Switzerland. Archroma was formed in September 2013 from the textile. Textile Specialties: From fiber to finish. Customers have been witness to the outstanding success of Archroma’s Mowilith® emulsions since its first patent was obtained in 1912. Roll to roll treatment is possible. It also confirms the company’s position as a global leader in color and specialty chemicals with strong market insights and a rich heritage of materials excellence and expertise. Archroma’s Emulsion Products Business provides solutions for a wide range of applications. printing and finishing of textiles. dyeing. In 1997.NEWS BRIEFS Customer and market focus Archroma is favorably positioned in multi-billion-dollar end markets. Product packages enhance the properties of apparel and other textiles in applications as diverse as high fashion. Treatment conditions are being optimised as per client’s needs. Oxygen. we enhance both the optical and functional properties of paper. For more details. Clariant itself was formed in 1995 as a spin off from Sandoz. By combining our focused product range with the application services of our paper experts around the globe. Emulsion Products: From paints. from fibers and fabrics to paper and packaging to coatings. home textiles and special technical textiles.000 employees. adhesives and construction to the textile. nonwovens. the name of the company is reminiscent of the BTRA's Atmospheric Pressure Plasma Treating Machine available for industry trials BTRA has procured and commissioned an Atmospheric Pressure Plasma Treating Machine (DBD) for textiles and polymers (PilotPlant Model). The Bombay Textile Research Association. Through this direct lineage. It represents the commitment from 3. newclothmarketonline.com NCM-OCTOBER 2013 101 .NEWS BRIEFS www. NEWS BRIEFS • Authorised Dealers of • Zydex Industries Polymer Based Speciality Chemicals for Sizing. Narol-Sarkhej Road.co. B/h.in NCM-OCTOBER 2013 102 . Narol. Asopalav Hotel. Ltd. Ph. Dyes & Textile Chemicals Amritlal Chemaux Pvt. Pre-treatment. Emulsifiers ST-82 & HPD for Pigment Emulsions 20 Microns Limited Powder for Khadi A-2 & 3.: (O) 079-2533 2230 (R) 2673 2219 (M) 98250 15886 Email : saurabh_enterprise@yahoo. Dyeing. Ahmedabad-382 405. Printing & Finishing Clariant Chemicals (India) Ltd. Hare Krishna Estate.