Cotlook A Index - Cents/lb (Change from previous day)

10-09-2018 91.70 (+0.70)

11-09-2017 84.40

09-09-2016 78.45

New York Cotton Futures (Cents/lb) As on 11.09.2018 (Change from

previous day) October 2018 83.03 (-0.90)

December 2018 82.91 (+0.02)

March 2019 83.39 (+0.08)

12th SEPTEMBER

2018

Stocks crash as rupee hits new low, Sensex sees biggest fall in six months

View: Take steps to cut the trade deficit, but stay calm on rupee

Opinion | India is standing still as global trade changes

What a widening CAD portends for the economy

Rupee is not Asia’s worst currency this year! This currency’s reserves are worst-hit

Pakistan must invest in entire value chain of textile sector

Cotton and Yarn Futures ZCE - Daily Data

(Change from previous day)

MCX (Change from previous day) Oct 2018 23050 (-120)

Cotton 15705 (0) Nov 2018 22830 (-100)

Yarn 26620 (+210) Dec 2018 22950 (-80)

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------------------------------------------------------------------------------------------------- Stocks crash as rupee hits new low, Sensex sees biggest fall in six months

View: Take steps to cut the trade deficit, but stay calm on rupee

Opinion | India is standing still as global trade changes

Opinion | Three investment lessons from the 2008 financial crisis

What a widening CAD portends for the economy

India's economic growth to slow in second half of this fiscal: UBS

SME cotton mills in Tamil Nadu go for production cuts

Power companies hail Supreme Court stay on RBI circular

Selling of low-cost silk sarees was no smooth affair at KSIC outlet in Bengaluru

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Rupee is not Asia’s worst currency this year! This currency’s reserves are worst-hit

Pakistan must invest in entire value chain of textile sector

VN textile, garment firms lose competiveness

Mixed fabric of Kenya’s textile exports to Agoa

California retailers must be carbon neutral by 2145

Nigeria, China sign $2bn MoU on cotton industry, says Minister Pakistan Facing Huge Loss Due To Polluted Cotton

New Zealand : Spotlight on wool's future with industry in crisis

J.C. Penney unveils new boho women's apparel label

Asia Textile Chemicals Market to Grab Whooping US$ 11,626 Mn by 2020 End

Saurer to show textile machinery at ITMA Asia

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NATIONAL

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GLOBAL

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NATIONAL:

Stocks crash as rupee hits new low, Sensex sees biggest fall in six months (Source: The Economic Times, September 12, 2018)

Despite verbal intervention by the policymakers, there has not been much respite in the currency and market’s one-way bet against the rupee has continued. Besides, as markets await clarity on US tariff imposition on China, EMFX space remains precarious as well. The sharp rupee plunge has increased market chatters of possible interest rate defense or re-introduction of the FCNR deposit scheme and FX swap lines with OMCs - Madhavi Arora, Economist - forex and rates, Edelweiss Securities The bears continued to dominate, as the equity indices fell sharply for a second straight session. A continued sharp fall in the rupee to a new record low, firm crude oil prices and weak global cues impacted the sentiment on the domestic bourses and dragged the Nifty down to an intra-day low of 11,274 before it closed the session 1.3 per cent lower at 11,288 level. The broader market indices fell broadly in line with benchmark. Broad-based selling was witnessed across sectors with FMCG, consumer durables, metals, realty and healthcare being the top losers down between 1.5-2.5 per cent. Globally, most Asian indices and European markets traded in the red - Jayant Manglik, President, Religare Broking CLOSING BELL: Stocks crash as rupee hits new low, Sensex sees biggest fall in six months; down 509 points

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Market pain deepens as rupee sees sharp fall After recovering in the morning session, the Indian rupee saw sharp fall in afternoon deals and was trading 19 paise down at 72.63 around 2.24 pm. Sensex was down 319 pts at 37,603.17 while Nifty was trading 100.50 points down at 11,337.60 around the same time

Global funds dump Indian bonds at fastest pace in four months A mini-revival of foreign inflows into Indian bonds spluttered in the first week of September. Global funds sold $686.4 million of rupee-denominated debt in the week ended Sept. 7, the most in four months. That’s also more than the combined $460 million of inflows in July and August.

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Home View: Take steps to cut the trade deficit, but stay calm on rupee (Source: Soumya Kanti Ghosh, The Economic Times, September 11, 2018)

While, a large part of the decline is in consonance with the global strengthening of the USD against emerging market currencies, India could not have been immune to such. The recent disturbances in rupee value point towards the typical idiosyncrasies associated with a financial market. While, a large part of the decline is in consonance with the global strengthening of the USD against emerging market currencies, India could not have been immune to such. However, the pace of currency depreciation in recent times seemed to have rattled the markets. For example, it took only one trading day for the rupee to travel 100 paisa a day in August, as against a historical average of 17 days beginning April 2018 (27 days in 2015). While it may be preposterous to use terms like Indian currency being one of the worst performers across Asian peers, it is a fact that rupee has depreciated by close to 14% in 2018, as against 9.6% for Indonesian Rupiah, against which a comparison is

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often made as both are CAD countries. But the 5-year Credit Default Swap (CDS / a possible proxy for country risk) for India has widened only half of what Indonesia has witnessed in 2018. Interestingly, even for Malaysia, the change in CDS is much more than India and intriguingly Malaysian Ringgit has depreciated by only 3.1% in 2018. Clearly, the current precipitous fall in rupee value does not in any way contradict the investor perception of India being a relatively safe investment destination. The trigger for the sudden rapid decline in rupee value came after the trade data for July showed a 5 year high $18 bn deficit. We believe, apart from price impact, oil importers’ frontloading of oil imports from Iran ahead of the US sanctions, which hit a record 768,000 barrels per day in July, was also one of the reasons why the trade deficit has been widening in recent months. It may be noted that India, China and Turkey import around 67% of Iranian oil exports.

There are two perceived benefits of rupee depreciation in the form of increased exports and automatic adjustment of trade deficit in policy circles which are currently being vigorously talked about. We believe the traditional view that weak exchange rates could dramatically boost exports growth is not entirely correct over the long term as India’s export basket has changed significantly from traditional products to more mechanised engineering goods over the years, thus making them more income elastic rather than price elastic. In the hope of a better export growth, talking down the rupee as was done recently when the markets were volatile might have been counterproductive and thus the pace of depreciation picked up frantic pace in the last week or so. In this context, the statement by FM is most welcome and timely one as it has provided an immediate succor to battered market sentiments. The RBI could also chip in with a message that could be most comforting under the current circumstances. It may be noted that RBI intervention in the foreign exchange market recently have been limited given the costs associated with such. So what next? We believe that beyond a point, the costs of rupee depreciation will significantly outweigh the benefits from such and the policy makers should be mindful of such. There are many. First, India’s short term debt obligations at $222 billion due on

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March 2018 if rolled over could add a significant cost on the government. Second, oil import bill could go up manifold. Third, with yields increasing, this could add up government fiscal costs too and also put enormous pressure on beleaguered Indian banks in terms of ratcheting up MTM losses. It may be noted that the yields are already under pressure as unlike earlier years, the government borrowing programme is not frontloaded in the current fiscal. Most importantly as per RBI estimates, assuming a 10% depreciation, this could add upto 50 bps on inflation number. In fact, continued rupee depreciation could result in rate action by RBI in October policy, even as headline CPI will decline meaningfully to 3.6-3.7% in September. But there are positives, too. A history of Indian foreign exchange market shows that foreign portfolio investment (FPI) generally responds negatively to domestic currency depreciation over a period of time. This is obvious, as a typical portfolio investor brings in foreign currency but invests in domestic currency and therefore a depreciation in domestic currency will only mean that a portfolio investor will be able to take out a lower amount of foreign currency compared to what was originally invested. Portfolio investors thus have a typical asymmetric behavior as they behave oppositely to appreciation and depreciation of the domestic currency. To sum up, future movements of rupee value will be mostly dictated by movement in USD, even as the NDF market still shows rupee could continue to be under pressure. Tightening financial market conditions make us believe that the US Federal Reserve will remain largely cautious over the pace of monetary tightening. For example, Fed Chairman Powell in his speech at Jackson Hole on 24th August concluded that “there does not seem to be an elevated risk of overheating”. The failure of the dollar to advance significantly after such statement indicates that the recent elevated levels are not sustainable. Independent estimates suggest that there is significant speculative long dollar positioning, implying USD may weaken going forward. Additionally, going forward, macro numbers are also not favourable for continued USD strengthening. There is a record level of indebtedness in the global economy. It is not just the amount of public and private debt which is worrying, but also the deterioration in average quality. There is now $63 trillion of sovereign debt outstanding, with total debt at $237 trillion, a full $70 trillion above pre-Lehman levels! Clearly, we should stay calm for now, even as rupee stays under pressure. But no harm in initiating measures to improve India’s trade deficit as in Indonesia and the RBI intervening and talking up the rupee in the interregnum.

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*The author is group chief economic advisor at State Bank of India. Views expressed are personal.

(Disclaimer: The opinions expressed in this column are that of the writer. The facts and opinions expressed here do not reflect the views of www.economictimes.com.)

Home Opinion | India is standing still as global trade changes New Delhi would be better served by focusing on structural reforms, such as rationalizing India’s tariff structure (Source: Livemint, September 11, 2018)

Illustration: Jayachandran/Mint Donald Trump, Nitin Gadkari and Suresh Prabhu have vastly different remits. Between them, however, they summed up India’s trade dilemmas last week. It makes for a worrying scenario. On 7 September, the US President signalled his intention to go all in in his trade war with China. If he goes ahead with the tariffs on an additional $267 billion worth of Chinese goods, in addition to previous tariffs that have been put in place or proposed, it will cover the entirety of imports from China. Admittedly, there is no certainty this will play out as Trump might want. The previous tranche of tariffs on $200 billion worth of Chinese goods is still in the ether because of the pressure brought by US companies alarmed at the prospective hit to their investments and value chains. That said, the implications for the World Trade Organization (WTO) are not encouraging. Trump’s earlier steel and aluminium tariffs were imposed under Section 232, a provision of the Trade Expansion Act of 1962. This piece of US legislation allows national security exceptions to WTO free trade obligations, invoked under Article XXI of the General Agreement on Tariffs and Trade. The targeted countries have lodged a complaint at the WTO. There is no good end to this. If the WTO allows the tariff, similar tariffs on the ostensible basis of national security are bound to mushroom among its members. If it disallows the tariff, it challenges a country’s sovereign right to define its national security, a sure path to irrelevance.

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The proposed $200 billion tariffs, meanwhile, are even more likely to run into heavy weather at the WTO. They have been imposed under Section 301 of the 1974 Trade Act, which allows for unilateral measures. However, the US had agreed in 2000 to impose punitive tariffs only after a WTO ruling. It has not done so here. The tariffs Trump mooted on 7 September will doubtless face the same problem. All of which is to say that bilateral and plurilateral trade agreements might get even more of a push. They have become increasingly important as the Doha Development Agenda deadlock has stalled progress at the WTO. Little wonder the number of regional trading agreements (RTAs) has exploded over the past decade. Potentially one of the highest value RTAs is the Regional Comprehensive Economic Partnership (RCEP), accounting for 25% of global gross domestic product and 30% of global trade. Last week, Union minister for commerce and industry Suresh Prabhu revealed that RCEP members have agreed to New Delhi’s long-standing demand that liberalization in services accompany trade liberalization in the negotiations. But that doesn’t mean an end to India’s coyness about signing on the dotted line, as Prabhu made clear. The pushback against the RCEP within the government and from Indian industry is not entirely baseless. The steel and pharma industries, for instance, have reason to be worried about being swamped by Chinese imports. It isn’t the only one. However, some perspective is useful. RCEP’s detractors point to the free trade agreements (FTAs) with Japan and Korea. After signing on them, India’s trade deficit with both countries has risen over the past few years. True enough. But, as Naushad Forbes has pointed out in Business Standard, the deficit with China, with which India has no FTA, has risen much more sharply over the same period. Plainly, the problem goes beyond FTAs. For one, the rupee’s real effective rate has appreciated by 20% over the past four years. More broadly, as the NITI Aayog put it in its April note cautioning against the RCEP, opening the Indian market would be dangerous because “proper standards and processes are not in place in India.” The nature of India’s export basket doesn’t help, dominated as it is by goods of relatively low sophistication. This prevents it from developing dense “clusters” of exports, which typically accrete around more sophisticated goods, and, in turn, from gaining the competitive edge required to boost export numbers. Union minister for road transport, highways and shipping Nitin Gadkari’s statement last week that the government is working on an import substitution policy for industrialization is exactly the wrong way to address these problems. We have seen how this story ends in the decades before 1991. It is also a violation of the basic economic truth that a tariff on imports is an equivalent tax on exports. Unfortunately, the Narendra Modi government has been moving in a protectionist direction since at least 2016. The Union budget this year brought that shift front and centre. In the past, this newspaper has advocated playing hardball on the RCEP when it comes to liberalizing services. It seems New Delhi is gaining ground on that front. Doubtless, it still has tough negotiating ahead of it when it comes to deciding what percentage of tariff lines to cut duties on—the RCEP wants 92% while New Delhi is holding firm at 86%—and lower market access for China.

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That is not, however, reason enough to give in to the increasingly loud domestic constituency advocating trade protectionism. New Delhi would be better served by focusing on structural reforms, such as rationalizing India’s tariff structure, as recommended by the Chelliah Committee back in 1993, and plugging the many gaps in the Foreign Trade Policy 2015-2020. Global trade is changing, and swiftly. New Delhi must keep up.

Home Opinion | Three investment lessons from the 2008 financial crisis There’s a belief that “India is a different story and we have a long runway”. It is always prudent to remember that the worst skids happen on the best of runways (Source: Shyam Sekhar, m

oneycontrol.com, September 12, 2018)

On a lazy Sunday evening last fortnight, a friend and I dropped everything we were doing and switched over to watch The Big Short

for the next 130 minutes. The movie is based on Michael Lewis’ book on the financial crisis of 2007-08. The 130 minutes stretched much longer with the usual commercial breaks. Unusually, we loved these breaks. Conversations flowed filled with memories. Coffee kept our spirits together. Memories have a constant tendency to bring back investment lessons. And drawing up of Indian parallels followed. The lessons were simple.

Lend sensibly

The crisis was coming. It was in the making for long years. It clearly was the American way of life that led to it. It simply became dramatic when people had borrowed way too much money and could no more hope to repay them. Banks cannot behave like private equity; or venture capital. They lend borrowed money. The money technically needs to be returned on tap. And solvency is a matter of public faith. If the faith is shaken, people will come back asking for their money all at the same time. No matter who does it, lending has to be a responsible business. A responsible business can’t grow expansively. It comes with limitations. Before Lehman, banks hungry for growth gradually shed their responsibility and went for broke. They lent money to people who should never have been loaned, didn’t have

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regular incomes that ensured repayment and were spending the borrowed money to live up. Predictably, both borrowers and lenders went broke. And their woes spilled into the stock market.

Avoid creating products that are WMDs

The financial industry will always be up to something. It needs no excuse to create a buzz. The hope is that the buzz, if it succeeds, will lead to euphoria. After all, the high tide of euphoria will take all boats up. Earnings, valuations and executive compensation will also rise ensuring great times for everybody. So, the financial industry will always clamour for more. Good times, however, never last forever. We know euphoria ends predictably. Everyone knows it too well. We only don’t know when. But the financial industry will still do what it does. Every cycle will bring forward new mistakes. The Lehman crisis was triggered by a housing bubble. The next crisis will probably be triggered by something new. It could even be a run on exchange traded funds (ETFs). After all, whatever we take for granted as safe and beyond failure gradually develops all the structural weakness it needs to fail. Simply put, just too many people and too much money doing the same thing is risk enough. We start to think “Everybody can’t be wrong”. And, we only end up learning that everybody was actually wrong. Mass products, when structured faultily, have that nature. The mass itself lends the destructive bent. The heft and size a product gains eventually leads to its downfall. The financial industry is still learning to learn to curb its own greed and keep its clientele safe. Globally, regulation is actively addressing this need and this is still work in progress.

Keep personal leverage down

The Lehman crisis was not just about corporations being ill-prepared. More significantly, personal leverage was at its highest or very close. People were so confident about the future that they borrowed without worry. But, borrowing is always meant to worry an individual. You expect to be able to repay. But those expectations are not cast in stone. Economic circumstances can throw uncertainty at you when you never expect it. Uncertainty will come with a force and speed that you simply can’t handle. This hits when you are least prepared. So, preparation is essential. When you borrow, be prepared for a crisis. Or, better still, borrow only if you really need to. If not, simple prepare yourself financially so that you will never need to borrow. Corporate India had excessive leverage at the time of the Lehman crisis. India was in the middle of an infrastructure boom. Confidence ran high. Companies were committing to raising even more debt and taking on mega projects. Interest rates were favourable.

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Equity valuations were high. Companies believed they would raise debt first and equity later. The former happened, and the latter never happened. Lehman collapsed the scope to raise equity. Ten years later, the most aggressive companies of those times have either gone bankrupt or are in the process of being acquired after filing for bankruptcy. Companies learnt bitter lessons on monetisation and capitalisation. The lessons were basic and biting. Stories ended. Newer players have emerged from the embers of Lehman. Yet, they may well end up making the same mistakes. Corporations must be adequately capitalised to take on bigger project risks. They must learn to monetise smartly before leveraging. Marquee private banks always raise equity money when valuations are in favour. Other capital-hungry businesses must learn from them. On the lending front, we have seen a euphoric rise in sub-prime lending in India. This has happened in micro finance, consumer finance and in suburban housing. The hunger for growth has encouraged Indian financial firms to lend big money fast. Time will tell if the Indian story will play out very differently. The belief is that “India is a different story. We have a long runway”. It is always prudent to remember that the worst skids happen on the best of runways. PS: The Big Short

ended up winning the Critics’ Choice Movie Award for the best comedy. That’s hardly funny.

(Shyam Sekhar is chief ideator and founder, ithought. Views are personal) Home

What a widening CAD portends for the economy Mint analyses the possible reasons and their impact behind India’s widening current account deficit (CAD) (Source: Asit Ranjan Mishra. Livemint, September 11, 2018)

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The China-US trade war may hamper export growth, while rising investment demand will lead to more imports. This may further widen CAD in FY19. India’s current account deficit (CAD) widened to a four-quarter high at 2.4% of gross domestic product (GDP) in the April-June period from 1.9% in the January-March quarter of 2017-18. Mint analyses the possible reasons and their impact. Why is CAD rising? Tensions in the Gulf region, US sanctions on Iran and the instability in key oil exporting nation Venezuela pushed global crude prices above the $75-a-barrel mark. Being a net importer of fuel, India’s trade deficit went up. Petroleum ministry data shows that while India’s oil imports rose 5.6% in Q1FY19, oil price in the Indian basket surged 46% in that time. A weakening rupee has made imports costlier. The China-US trade war may hamper export growth, while rising investment demand will lead to more imports. This may further widen CAD in FY19. Is the rise in CAD worrying? Amid rising global volatility, CAD financing is a worry. CAD will be financed through a mix of FDI, portfolio flows, foreign reserve management. While FDI flows rose in recent years, a strong dollar, tighter global financial conditions have put more pressure on portfolio investments. In Q1FY19, the net outflow of portfolio investments was $8.1 billion, against a $2.3 billion inflow in Q4FY18. IMF said that based on India’s historical cash flows, capital inflow curbs, global markets may not be able to finance a CAD above 3% of GDP. How will a widening CAD impact the rupee? Higher CAD will put the rupee under pressure and may raise the cost of overseas borrowing. Depleting forex reserves could raise CAD further. Why does CAD matter? Current account balance measures the external strength or weakness of an economy. It largely consists of the country’s trade balance in goods and services with the rest of the world, and private transfer receipts, primarily representing remittances in the case of India. A current account surplus implies the country is a net lender to the rest of the world, while a deficit indicates it is a net borrower. Where will India’s CAD end up in FY19? CAD forecast in FY19 ranges from 2.5% to 2.9%. IMF has projected India’s CAD to widen to 2.6% of GDP in 2018-19. India Ratings expects CAD to be at 2.6% of GDP in FY19, while Icra says it would widen to 2.8%. Kotak Securities said that assuming Brent

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crude prices at an average of $72.5 a barrel, CAD will rise to 2.9% of GDP. But at current levels, India’s CAD is much narrower than the near 5% of GDP during the taper tantrum in 2013.

Home India's economic growth to slow in second half of this fiscal: UBS (Source: PTI, The Economic Times, September 12, 2018)

According to official data, the Indian economy grew at a two-year high of 8.2 per cent in the April-June quarter of current fiscal on good show by manufacturing and farm sectors. NEW DELHI: India's economic growth is expected to moderate in the second half of this financial year after a strong first quarter, owing to tighter financial conditions, high oil prices and slowing global growth, says a UBS report. The global financial services major expects real GDP growth to slow to 7-7.3 per cent in the second half of this fiscal from 8.2 per cent in June 2018 quarter. "We believe headwinds, including tighter financial conditions, high oil prices, slowing global growth and a still muted private corporate capex recovery on legacy issues of high debt and weakened balance sheets will weigh on India's growth momentum," UBS Securities India's Economist Tanvee Gupta Jain and Strategist Rohit Arora said in a research note. According to official data, the Indian economy grew at a two-year high of 8.2 per cent in the April-June quarter of current fiscal on good show by manufacturing and farm sectors. On the monetary policy front, the report said that the Monetary Policy Committee (MPC) of the Reserve Bank is expected to take a breather in the near-term amid rising global uncertainties like trade wars and oil prices.

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"In a scenario where trade wars drag global growth and push commodity prices lower, India might benefit as a disinflationary environment lowers external stability risks. Rates will likely be kept on hold in this case," the report said. However, "in an alternative scenario where India continues to be affected by the headwinds of rising oil prices, capital outflows, populist spending and political uncertainty leading to financial stability concerns, a 50 bps hike is likely for the rest of this fiscal," it noted.

Home SME cotton mills in Tamil Nadu go for production cuts The small and medium (SME) spinning mills in Tamil Nadu, which manufacture cotton yarn, have curtailed their production during night shifts and weekends due to abnormal increase of cotton price. (Source: Financial Express, September 11, 2018)

The skyrocketing of cotton prices every year during the off season has affected the SME mills in Tamil Nadu. The small and medium (SME) spinning mills in Tamil Nadu, which manufacture cotton yarn, have curtailed their production during night shifts and weekends due to abnormal increase of cotton price. The skyrocketing of cotton prices every year during the off season has affected the SME mills in Tamil Nadu. The South India Spinners’ Association (SISPA), in a release on Monday said, the beneficiary of the spike in cotton prices are multinational companies, traders and CCI. Cotton during the peak arrival season is procured from farmers at MSP rates and hoarded by multinational companies, traders and CCI. The SME mills do not have the financial capacity to buy cotton and store till the next season. After the cotton season gets over the above companies unilaterally create an artificial vacuum in the market and within a month they inflate the price of cotton by nearly eight to ten thousand rupees a candy. It pointed out that during April 2018 the cotton prices were ruling around Rs 38,000 per candy level whereas the by the end of June it has reached R48,000 per candy. “We do not understand what has warranted the traders to

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inflate the cotton prices to this level. Enormous profits are earned by the multinational companies’ big traders and CCI,” said SK Rangarajan, president, SISPA. The SME spinning sector inevitably buys cotton for its usage on monthly basis resulting in incurring huge cash losses every year. The SME Mills sell their yarn in the domestic market and are unable to fetch higher yarn prices incurring phenomenal losses and sustainability.

Home Power companies hail Supreme Court stay on RBI circular (Source: Sarita C Singh, Economic Times, September 12, 2018) NEW DELHI: Power companies have welcomed the Supreme Court's stay on RBI circular and said the verdict will prevent 13Gw of stressed power plants from insolvency. “SC order has provided a great relief to Power sector stressed assets , this would provide time for Bankers to finalise resolution plan for about 13 GW of projects which are presently in their final stages and HLEC under the Chairman ship of Cabinet Secretary , to submit its report on corrective actions that the Government intends to initiate to mitigate stress factors, " Association of Power Producers director general Ashok Khurana said. In a big relief to private power, textiles companies and shipowners, the Supreme Court has stayed the Reserve Bank of India's circular, preventing initiation of Insolvency proceedings against their stressed power assets. "The Supreme Court has asked RBI and parties to maintain status quo with regard to insolvency proceedings," senior advocate Mahesh Agarwal told ET adding the RBI's plea will be heard on November 14. Members of the Association of Power Producers, Independent Power Producers Association of India, Shipowners association and textile associations from Chennai have got the relief, he said. The Supreme Court heard the plea filed by RBI seeking transfer of all cases filed against its February circular to the apex court. Private power companies, bank employees, textile associations had filed about a dozen cases against the controversial circular in various high courts. he relief to the companies came on Tuesday, the last day for bankers to refer unresolved cases to insolvency court. "Where ever cases have been referred to NCLT post RBI circular their will be status quo and where they have not been filed, they will not be referred to NCLT," Agarwal said.

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Selling of low-cost silk sarees was no smooth affair at KSIC outlet in Bengaluru (Source: Bangalore Mirror, September 12, 2018)

After multiple failed attempts, ‘subsidised’ Mysore silk sarees were finally distributed on Tuesday. Thousands of women were seen standing in long queues in front of Karnataka Silk Industries Corporation Limited (KSIC) outlet near KG Road on Tuesday morning.

Over 800 customers managed to buy ‘prized possessions’, but not before high drama and commotion at KSIC outlet in city

There was high drama after KSIC officials asked customers to furnish Aadhaar copies as proof. Besides, officials said only lucky dip winners would get the sarees. When KSIC officials announced the list, it led to a commotion with some holding protests. Later, KSIC officials changed their mind and decided to give away sarees on first-come-first-come serve basis. Sarees costing Rs 10,000 were given for Rs 4,400. According to sources, over 800 customers managed to buy silk sarees. According to sources, similar scenes played out in Mysuru outlet as well. Earlier, due to Model Code of Conduct (Corporation Election), the government postponed the scheme of providing subsidised Mysuru silk sarees till September 3. The plan was to sell sarees at subsidised rates during the Varamahalakshmi festival. It promised that the sarees could be bought at Rs 4,000-4,500 on Independence Day as well. But the I-Day promise was not kept either. KSIC employees too opposed the decision. “We are not against giving sarees at a low cost to customers. We are ready to give sarees free of cost too, but only if the minister or the state government takes the responsibility of compensating the loss to the company. Mysuru silk sarees cost above Rs 10,000 at the least and the manufacturing cost crosses Rs 6,000. How can the minister make such a promise without thinking of the loss the company has to bear after giving sarees at such low rates,” asked a union leader.

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GLOBAL:

Rupee is not Asia’s worst currency this year! This currency’s reserves are worst-hit Indonesia's central bank has drained almost 10% from foreign reserves this year, the most among Asia’s largest economies, to help bolster the rupiah amid a rout in emerging markets. (Source: Bloomberg, Financial Express, September 12, 2018

(Image : Reuters) Bank Indonesia has been the most aggressive central bank in Asia this year, not only on interest rates but on foreign-currency intervention as well. The bank has drained almost 10 percent from foreign reserves this year, the most among Asia’s largest economies, to help bolster the rupiah amid a rout in emerging markets. The Philippines has cut its buffers by almost 5 percent, while reserves in India have fallen more than 2 percent. Malaysia and South Korea have managed to boost their reserves even as their currencies also weakened. The rupiah slumped to its lowest level since the 1997-98 Asian financial crisis last week, while India’s rupee lost about 12 percent against the dollar this year. With volatility likely to remain high, reserves are becoming more important in assessing the buffers of an economy, said Eugenia Victorino, head of Asia strategy at Skandinaviska Enskilda Banken AB in Singapore. “This is particularly true for India, Indonesia, and the Philippines, countries running current-account deficits and regarded as more exposed to the negative sentiment on emerging markets,” she said.

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Indonesia’s reserves fell to $117.9 billion in August, the lowest since January 2017, though still enough to finance 6.6 months of imports and servicing of the government’s external debt, according to the central bank.

Home Pakistan must invest in entire value chain of textile sector (Source: The Nation, September 12, 2018)

LAHORE - The significance of textile sector in Pakistan’s economy can hardly be debated. Punjab Board of Investment & Trade (PBIT) convened a roundtable, bringing together notable textile sector stakeholders including prominent members from APTMA. In terms of strategy towards the sector, Punjab should place special emphasis on attracting and growing the value-added garment industry in Punjab. It is a relatively low-energy consuming industry, and has an immense job-creation potential. In this regard, exploring linkages with China, especially with industry on China’s west coast that is closer to Pakistan in terms of physical distance, in the form of contract manufacturing of garments could be an interesting avenue to explore. This strategy could be very important given the context of rising domestic consumption in China. The government of Punjab may work with the large textile players in the country to implement this strategy through its Special Economic Zones, such as Quaid-e-Azam Apparel park (QAAP). There are certain urgent issues that must be addressed urgently. Specifically the issue of energy price differentials between the provinces and rebates that the government owes to the industry must be given top priority. It must be emphasized that textile sector is the largest employer of industrial labor in the country and accounts for over 60% of the exports of Pakistan. In the backdrop of a competitive regional landscape, with countries like Bangladesh and Vietnam having emerged as sizable players on the global stage, Pakistan must defend and invest in the entire value chain of the textile sector on a priority basis, including innovative solutions for enhancing cotton yields. Backward linkages whereby large industrial players integrate into corporate farming for cotton could be a potential model to explore in this regard. Another key area of focus must be to check undocumented import of textile/apparel products from China. Undocumented or under-valued import of such products distorts the local market dynamics making it impossible for local players across the whole value-chain to compete.

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Participants at the roundtable emphasized that the industry needs to see credible commitment and follow-up from federal and provincial governments, and reassured that they are willing to make further investments if they receive the right governmental support, including simplification of cumbersome processes and procedures through effective one-window facilitation.

Home VN textile, garment firms lose competiveness Vietnamese garment and textile enterprises are losing their competitiveness due to high costs of logistics services for exports, experts have said. (Source: Viet Nam Net, September 11, 2018)

Vietnamese garment and textile enterprises are losing their competiveness in exports due to the high costs of logistics services. According to statistics from the Vietnam Textile and Apparel Association (VITAS), textile and garment export value last year reached 31 billion USD, an increase of 19.2 percent compared to 2016. Of the 31 billion USD in export value, the industry spent nearly 18 billion USD to import raw materials, including cloth, fibre and cotton, among others. However, the cost of logistics activities for textile and garment enterprises accounted for 9.1 percent of total export turnover, around 2.79 billion USD. According to VITAS, the cost of logistics services in Vietnam is much higher than that of neighbouring countries and the region. In particular, logistics costs in the country are 6 percent higher than in Thailand, 7 percent more than in China, 12 percent higher than in Malaysia and three times more than in Singapore. Despite reasonable labour costs, competitiveness has been affected by transport costs, surcharges at seaports, and limited seaport infrastructure.

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Pham Thi Thuy Van, deputy director of marketing at the Sai Gon Newport Corporation, Vietnam’s leading container port operator, attributed high logistics costs to a number of reasons. “The current regulations on fees and charges for logistics services are high, making transport costs also relatively high, accounting for between 30 and 40 percent of the cost of the products, compared to some 15 percent in other countries,” she said. For example, BOT charges on the Hanoi-Hai Phong expressway for businesses from Hanoi and Bac Ninh are about 75 USD per trip, accounting for 40-42 percent of the total trucking fee, while in Malaysia, the BOT fees account for only 6 percent of trucking costs. In addition, the surcharges of shipping lines also contribute to the cost of logistics operations in the country. Experts said the expanded costs for logistics have significantly affected the garment and textile industry, which employs a large number of labourers and is hugely dependent on input importation, which results in low added value. Nguyen Xuan Duong, Chairman of the Board of Directors of the Hung Yen Garment and Textile JSC, said it was difficult for enterprises to be highly competitive because of the high cost of logistics. “The company has to spend around 5 million USD on logistics services for exports every year,” he said. In the first eight months of the year, exports of the garment and textile sector reached nearly 20 billion USD. This year, the garment and textile industry has set a target of 34-35 billion USD worth of exports. If achieved, the costs for logistics services would reach up to 3 billion USD, reducing competitiveness of businesses. To address the challenges, many firms have applied technology to better manage warehousing as well as optimise supply chains. One of the most commonly used technologies includes backing up bills and contracts, and automatically transferring documents between firms. Experts said that logistics enterprises should work to improve their competitiveness, and consider cooperating in transport services to reduce costs for other enterprises. They also suggested that the Government outline a roadmap to improve the quality of logistics services to meet the demand of many sectors, especially the garment and textile industry.

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According to the Vietnam Logistics Business Association, Vietnam’s logistics costs in 2016 totalled 41.26 billion USD, equivalent to 20.8 percent of the country’s GDP. Despite high logistics costs, the logistics sector has contributed a mere 3 percent to GDP, according to the association. According to the World Bank, in 2016, the country’s logistics sector ranked 64 out of 160 countries, and fourth in the ASEAN region after Singapore, Thailand and Malaysia.-VNS

Home Mixed fabric of Kenya’s textile exports to Agoa (Source: Frankline, Standard Digital, September 11. 2018)

The Shining Century Textile in Maseru, Lesotho. Kenya has often been hailed as a leading exporter of textiles and apparel to the United States through the Africa Growth Opportunities Act (Agoa). This notion was underlined in last week’s annual conference of the International Textile Manufacturers Federation held in Nairobi, where Government officials pointed out Kenya’s strategic share of the global textile market. “We should emphasize on the Buy Kenya, Build Kenya because we have high-quality products that can compete in the global space,” tweeted Cris Diaz, a board director at Brand Kenya. “Last year, Kenya exported apparels worth Sh35 billion becoming the largest exporter in apparels under the African Growth and Opportunity Act (Agoa),” stated Brand Kenya in another tweet. Data on the country’s textile industry, however, paints a picture of mixed fortunes for Kenya. Kenya does hold the lion’s share of textile imports to the US through Agoa with the country’s textile imports accounting for Sh34 billion out of Sh1 trillion imported last year according to the latest data from Agoa.

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However, the majority of these exports are channelled through the Export Processing Zones (EPZ) which accounted for Sh32 billion in Agoa textile exports in 2017. This is important to note because of the total EPZs currently in operation in the country, only 33.7 per cent are Kenyan-owned while the rest are joint ventures of foreign-owned. This means the majority of the profits from the Sh34 billion export haul sent through Agoa accrues to foreign-owned firms. In addition, Kenya’s tax holidays provided to EPZ firms eat into revenue from the lucrative trade. PZ firms enjoy a 10-year corporate tax holiday a 25 per cent corporate tax waiver for the next decade and a 10-year withholding tax holiday for payments like dividends and consultancy charges paid to nonresidents. Other exemptions include import duty, excise duties and value-added tax on machinery, building materials, raw materials, inputs, contracts, supplies, and services. This not only gives the majority foreign-owned EPZs an upper hand over local manufacturers but also denies Kenyans billions in foregone tax revenue. Moreover, Kenya qualifies for Agoa’s third country fabric rule which means Chinese firms are allowed to import textile raw materials from cheaper markets, process them in Kenya and export into the US through Agoa.

Home California retailers must be carbon neutral by 2145 (Source: Don-Alvin Adegeest, FashionUnited, September 11, 2018)

The Governor of California has signed an executive order to make the state carbon neutral by December 2045. It marks one of the world’s most ambitious climate policies, that will impact consumers and business on national and international levels. The new law requires the world’s fifth largest economy to generate 100 percent of its electricity from carbon-free sources by the end of 2045, noted the San Francisco Chronicle. A decree applicable to the many garment and textile manufacturers in California.

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Governor Jerry Brown further directed state agencies to figure out how to make the entire economy carbon neutral within the time frame, requiring everything from manufacturing to transportation maintaining “net negative emissions” beyond 2045. According to Ecotextiles, he textile industry uses huge quantities of fossil fuels to create energy directly needed to power the mills, produce heat and steam, and power air conditioners, as well as indirectly to create the many chemicals used in production. The textile industry is highly energy inefficient In addition, the textile industry has one of the lowest efficiencies in energy utilization because it is largely antiquated. For example, it takes 3886 MJ of energy to produce 25 yards of nylon fabric (about the amount needed to cover one sofa). To put that into perspective, 1 gallon of gasoline equals 131 MJ of energy; driving a Lamborghini from New York to Washington D.C. uses approximately 2266 MJ of energy. Textile manufacturing is highly mechanised and far more energy-intensive than apparel manufacturing. Environmental concerns (e.g., from dying and washing) and stringent regulations involved with textile manufacturing will make it a challenge for brands and retailers to commit to California’s carbon neutral stance. Organisations such as the San Francisco Sustainable Fashion Alliance and Fibershed, a network of Northern California textile artisans, wool producers, and growers of cotton, indigo and other dye plants are committed to bringing sustainable innovation to the larger fashion industry. Hopefully other states will follow suit. Photo credit: Fashion Revolution Day, source: Sustainable Fashion Alliance, Article source: SF Chronicle

Home Nigeria, China sign $2bn MoU on cotton industry, says Minister (Source: Vanguard, September 11, 2018) Abuja – The Minister of Industry, Trade and Investment, Mr Okechukwu Enelamah said on Tuesday that Nigeria has signed a Memorandum of Understanding (MoU) with a Chinese firm, on first-ever cotton value chain industry, worth two billion US dollars. President Buhari with President of Ruyi group in China Enelamah, who made this disclosure in Abuja at a news conference, said the MoU was signed with Shandong Ruyi International Fashion Industry, a Chinese firm. The minister explained that the agreement would involve cotton growing to ginning, spinning, textile manufacture and garment in Katsina, Kano, Abia and Lagos States. “Their investments will comprise aggregation and off take of cotton from farmers for ginning, spinning and weaving and manufacturing at least 300 million metres of African print, which will meet 20 per cent of West Africa’s demand. “Others are producing cotton and denim garments for export and local consumption by Ruyi Group in Abia, Lagos and Kano states,” Enelamah said. He added that in China, President Xi Jinping

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promised to open China’s market for agricultural products from Nigeria, based on trade negotiating engagements by Nigeria’s Trade Negotiators. Enelamah said for industrialisation, the government was aggressively implementing the Nigeria Industrial Revolution Plan (NIRP) by establishing the Nigeria Industrial Policy and Competitiveness Advisory Council. He said the focus would be on five high priority areas: policy and regulation, trade and markets, critical infrastructure, skills, capacity building and lastly financing. Enelamah said that the government had begun the establishment and upgrading of some existing industrial parks to world-class special economic zones (SEZs), across the six geo-political zones in the country. According to him, for the Agreement Establishing the African Continental Free Trade Area (AfCFTA), there is a serious ongoing technical work to strengthen Nigeria’s Trade Policy Infrastructure.(NAN)

Home

Pakistan Facing Huge Loss Due To Polluted Cotton

(Source: Fakhir Rizvi

, UrduPoint News, September 12, 2018)

Pakistan is facing loss of billions of rupees due to polluted cotton, said Assistant Director Agriculture here Tuesday MULTAN, (UrduPoint / Pakistan Point News - 11th Sep, 2018 ) :Pakistan is facing loss of billions of rupees due to polluted cotton, said Assistant Director Agriculture here Tuesday. He said that cotton picker women, farmers, middleman and other stakeholders should focus on neat and clean picking of cotton. He said the country received low price of cottonat international market, adding that Pakistan remained deprive of about two to three cents against one pound cotton due to impurities. Impurities meant that presence of bits of shopping bags, plastics, human hairs, birds feathers, "sapari", pieces of cigarettes, oil, paper etc, he added. He stated that there should be supervision of cotton picking. He suggested that picker women should make line during picking of the cotton from agriculture field.

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The cotton plants should be picked fromlower part. Similarly, the picked cotton should be placed at neat and clean sites. The Assistant Director further said that the wages of picking should be given after grading related to cleanliness. The cotton must be transport in clean bags to ginning factories, he concluded.

Home New Zealand : Spotlight on wool's future with industry in crisis (Source: Hawkes Bay Today, Newstalk ZB, September 11, 2018)

Pressures on the industry included meatless meat, wool-less sheep and consumer activism, Mullins sai New Zealand's wool industry is in crisis and it's serious, says Woodville farmer for 66 years John Bradley. Bradley joined a large number of farmers from around the region at the Beef + Lamb New Zealand Tararua Farming for Profit Seminar in Dannevirke last Wednesday, with the focus of the day, "Wool, wool, what is it good for?" "People are still interested in wool, but we need to seriously look at the future of the wool industry," Simon Marshall, of Vet Services Dannevirke, said. The focus of the seminar was to explore the future of the wool industry in New Zealand and what farmers could do in an environment of low product returns and high shearing costs. "It's a matter of, is the wool industry on track, off the track or over the bank?" Bradley told the Dannevirke News. "It's serious when farmers are sending stock to the freezing works with their wool on because they get a pittance for that wool. "Our national flock peaked at 75 million sheep and it's now down to 22 million, that's affecting a heck of a lot of shearers and shed hands as well as farmers."

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Annie O'Connell, Beef + Lamb New Zealand's national genetics manager, discussed with farmers how to get more economic value from their wool. But she said there wasn't much of an appetite for the selection of sheep for wool quality alone. Electronically canvassing the farmers and industry professionals at the seminar, the results showed that 60 per cent of those in the room saw the main block for the uptake of selection on wool quality was that the returns weren't enough. "If you want more money you've got to get finer, because stronger wool isn't attracting good prices," O'Connell said. However, she conceded if farmers were going to go for finer wool, they had to ensure the market was there. But veteran farmer Bradley said a lot of variables were involved in what wool farmers could produce. "You can't chase the market," he said. "Fifty years ago wool was only a bi-product, with mutton in big demand. Within four months wool prices went up and mutton down." Breeding "bare" sheep to get rid of wool was a bit of a short-sighted reaction. "There's no substitute for wool in the clothing industry," Bradley said. A representative from Kells Wool in Hawke's Bay said there was quite a large price drop at the coarse end of the market, but there were a lot of factors influencing price. "Half a micron can be a 30-cent difference," she said. Dannevirke's Mavis Mullins spoke on behalf of Paewai/Mullins Shearing and told the farmers there was still potential in what they were already growing. "Wool is a great product," she said. "Wool is what I live for." Pressures on the industry included meatless meat, wool-less sheep and consumer activism, Mullins said. The fourth generation in the family shearing business now run by daughter Aria, Mullins attended a Vanguard forum at Stanford University, looking at what wool could offer. The forum was totally focused on cross-breed fibre and strong wools. "The world really is moving towards natural fibres, with companies such as Tesla and IKEA, embracing it.

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"There are surfboards made out of wool and resin, with champion surfer Kelly Slater using wool surfboards," she said. "There's also a huge business for wool yoga mats, with the number of global yoga practitioners in the millions. "I'm quite buoyed by how close scientists are to deconstructing wool to reconstruct (for other uses). The wool job is going to be all right and I do believe in it and we sit right beside farmers." However, there were problems facing the shearing industry too, with national training in failure mode, Mullins said. "It's a shame," she said. "At Paewai/Mullins we are committed to training our own staff, but there are pressures on our side of the industry and Aria now has 20 per cent of international staff in her sheds, that's about the norm. New Zealand shearers can go to Australia and earn more than they can here, with shearers earning $7 a sheep in Norway. "But our biggest competition for staff is Work and Income New Zealand (Ministry of Social Development)," Mullins said. "We've got a system which is an alternative. So if we can't get the people we need, we have to make them and that requires farmers to be patient and accepting of learner stands." Addressing the elephant in the room, the pay rise for shearers, Mullins conceded it was overdue, despite the price of wool being down. "As a community and primary sector, we are all in this together," she said. Mullins said she was concerned about the number of lambs that went to slaughter woolly. "It's an issue for contractors and impacts on planning, but we understand," she said. The Shearing Contractors Association put up pay rates for shearers by 25 per cent and Aria said she thought it "was pretty harsh on farmers". "I totally agree with farmers who would have liked to see the rise come in over three years, but our back is against the wall," she said. But Mullins said contractors couldn't dodge the increase. "If we don't pay it, we'll have no staff," she said.

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J.C. Penney unveils new boho women's apparel label (Source: Daphne Howland, Retail Dive, September 11, 2018)

Dive Brief: J.C. Penney last week launched Artesia, a new private label boho apparel line for women, in time for fall. The collection includes crochet cardigans and dusters, peasant blouses and tops with tiered flounces that have bohemian details like flutter sleeves, lace, tassels and fringe, according to a company press release. Items are priced below $30 each. The retailer is promoting the new label in its women’s fall fashion mailer this month and through its email, social and digital marketing channels, according to the release. Dive Insight: Perfected by Free People and abetted by the ongoing appeal of styles seen each summer at the massive Coachella music festival, boho chic continues to factor in many designers' styles from home decor to baby items. But boho is found most of all in women's apparel, and few retailers have neglected to offer the flowing, embellished elements of the hippie style. Penney is only the latest, part of its effort to recover from the disastrous women's apparel sales of last year. The company attempted a drastic reset and swept away much of its women's inventory as it warned of a critical sales slump in the third quarter. The company closed out the year with a shakeup in its executive offices, letting go of longtime chief merchant John Tighe and axing his position. The ubiquity of boho fashion may make the new Artesia line a safe bet, but with so many other retailers offering similar styles, there's no guarantee that Penney will be able to coax shoppers into its stores. The move follows the trend this year of retailers expanding their private label portfolios in order to differentiate themselves from rivals, "fill merchandise voids and attain larger margins," Jane Hali, CEO of investment research firm Jane Hali & Associates, told Retail Dive in an email, noting that off-price retailer Saks Off 5th recently introduced a stable of men’s and women’s private brands and that Target has introduced more than a dozen new owned brands in the past year.

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"Boho is still part of the fashion landscape, with wide leg trousers, floating skirts and dresses, flared sleeves and blanket wraps," she said, but noted that JHA analysts don't see "this line truly affecting the top line."

Home Asia Textile Chemicals Market to Grab Whooping US$ 11,626 Mn by 2020 End Future Market Insights has announced the addition of the “Textile Chemicals Market: Asia Industry Analysis and Opportunity Assessment, 2014-2020"report to their offering (Source : Digital Journal, September 11, 2018) This press release was orginally distributed by SBWire Valley Cottage, NY -- (SBWIRE) -- Future Market Insights (FMI), in its recent report titled, "Asia Textile Chemicals Market Analysis & Opportunity Assessment, 2014 - 2020", projects that the market for textile chemicals in Asia will exhibit a steady CAGR of 7.6% during 2014 to 2020. According to FMI's in-depth analysis of textile chemicals market in Asia, the Asia textile chemicals market will reach US$ 11,626 Mn by 2020. Textile chemicals are class of specialty chemicals and comprise chemicals and intermediates that are used in various stages of textile processing such as preparation, dyeing, printing and finishing. These are often used to enhance or impart desired properties and colour to the fabrics during the manufacturing process. As of 2014, textile chemicals accounted for nearly 2% of the overall specialty chemicals market. FMI's report analyses the Asia textile chemicals market in terms of market value (US$ Mn) on the basis of product types, end use applications and countries of Asia region. The major players in textile industry across the globe are emphasising on channelising efforts towards ensuring sustainability throughout the value chain. As such, there is an ever increasing demand for eco-friendly chemicals that minimise the amount of water and energy required in various stages of textile processing and are in compliance with regional and international regulations. Textile chemicals industry is highly fragmented and comprises large number of small and big players catering to the demands of textile manufacturers. Due to this fragmented nature, developing innovative and differentiated product offerings has emerged as a key to gain competitive advantage. Moreover, growth in demand for functional finishes has resulted in a steady growth of textile finishing chemicals that impart desired specific finishes to textile and apparels. From regional perspective, China accounted for a major share in overall Asia textile chemicals market in 2014. China textile chemicals market is expected to exhibit a CAGR of 8.6% during the forecast period 2014?2020. In terms of market value, India is the second largest market for textile chemicals in Asia. India textile chemicals market is expected to witness a steady growth at a CAGR of 9.0% in the same period. Countries like

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Vietnam, Bangladesh, and Indonesia also are expected to witness relatively high growth in textile chemicals market. From product type perspective, market size of textile auxiliaries segment is expected to grow faster than the textile colourants segment. The segments are projected to witness high single-digit growth during the forecast period. From the process perspective, the finishing process segment is slated to experience faster growth than that of pre-treatment, dyeing and others segments. It is expected to register a CAGR of 8.6% between 2014 - 2020. This is primarily due to growth in demand for textiles and apparels with specific functional finishes. From applications perspective, market is composed of apparels segment, home furnishings segment and others (technical & smart textiles) segment. The apparels segment accounts for largest share among these segments and is slated to register a CAGR of 6.8% during forecast period. The key market participants covered in the report include companies covered in the report are Huntsman Corporation, Archroma and DyStar group.

Home Saurer to show textile machinery at ITMA Asia (Source: Fibre2Fashion, September 11, 2018)

Courtesy: Saurer Saurer Spinning Solutions, the specialist in staple fibre processing from bale to yarn, will present innovative new products, from the new card to new ring spinning and winding machines featuring the latest technology, at ITMA Asia, in hall 1, F01. The international textile machinery expo will be held from October 15-19, 2018, in Shanghai, China. The company will show the carding machine, JSC 328A, that follows the structure of the main carding area of the JSC 326. The powerful performance of JSC 328A will result in a great improvement of spinning mills’ product quality and create immense value for customers, the company said in a press release.

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The new Zinser 72XL, a highly productive ring and compact spinning machine for large spinning mills, with the new benefit of maximum flexibility in the areas of fancy and special yarns, will also be displayed. Premiering at ITMA Asia, the new ZinserImpact 72XL compact spinning machine is equipped with the new generation of the self-cleaning Impact FX unit combined with a new flow-optimised suction tube.

Saurer will present the Autoconer X6 winding machine. It comes with the revolutionary Bobbin Cloud, the RFID-based advanced material flow system that ensures maximum flow rates, maximum process reliability, and minimum personnel requirements. With a quantum leap in process automation, Autoconer X6 opens up a new dimension of efficiency with smart technology.

Texparts will show two new products at ITMA Asia. The new Texparts high-speed ring of 100Cr6 ball bearing steel offers optimal running behaviour with perfect roundness and evenness, allowing the highest speed with fewer yarn breaks and less downtime. The new Texparts yarn underwinding system has an advanced seal to lock out dust and is practically maintenance free. It also offers excellent cutting performance for special yarns such as Lycra.

The company will display the Autocoro 9 BD7 rotor spinning machines. Thanks to its single spinning position technology, achieving previously unattained rotor speeds of up to 180,000 rpm and with up to 720 spinning positions, the Autocoro 9 delivers highly productive technical superiority. The semi-automatic BD 7 machine is also in a league of its own. It offers convincing performance with all package sizes up to 320 mm diameter due to cross-wound packages in Autocoro quality and integrated digital package quality control. Senses is an innovative control and analysis tool that furnishes textile companies with digital senses for more profits along the textile value chain. The innovative Big Data system collects, aggregates, and analyses the production, quality, and machine data of the entire textile fabrication process across all locations. During ITMA Asia, Senses will be shown to the public for the first time and visitors will be able to follow live machinery data on tablets and mobile phones. (GK)

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