VOL. L No. 207 MUMBAI, FRIDAY, OCTOBER 07, 2016 PRICE: Rs. 5.00

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Indorama kickstarts its expansionof Inviya plant at Baddi

By Our Staff ReporterMUMBAI, OCT. 06—

Indorama Industries Limited, producers of Inviya spandexfibre, performed Bhumi Pujan at their manufacturing facility inBaddi today.

The nw capacity expansion is for 2nd phase of the project outof 3 phases, which have been originally envisaged. The productInviya, an elastomeric yarn mainly finds applications in stretchclothing for women, men, active wear, sportswear and also in fieldof medical textiles and hygiene products.

Indorama currently produces 5000 MTs of bare spandex yarnand this plant was commissioned in 2012. Over past 4 years,Indorama has become the preferred raw material supplier for stretchgarments due to emphasis on quality, minimal lead times anddependable technical services, informed a press communiqué

received here from the company.Company currently has

offices in all consumptioncenters of the country namely,NCR, Surat and Tirupur, whichare supported by sales andtechnical services team. Theconsumption of bare spandex hasbeen increasing in country inwoven as well as knittingsegment and Inviya is largelycredited for this growth due to

it’s easy availability and technical support.Earlier this year, Indorama had sent up a pilot plant to boost

its Research and Development capabilities and now capable toimprovise polymer characteristics and offer tailor made product toit’s discerning customers. Company had already set up itsApplication Development Centre (in 2013), where the processconditions & parameters of the customers are stimulated to makeimprovements in the products to offer a seamless experience to it’sdiscerning customers.

This new investment shall provide direct and indirectemployment to over 150 persons and shall boost the investmentsentiments in H.P and is also seen as Indorama’s testimony to thegrowth in textile and clothing industry.

Textile Package - Can this helpin revival of the industry?

By Varun Vaid and Anubha Seghal, Wazir AdvisorsAt the juncture, when

India is facing a stiff competitionfrom countries such as China,Bangladesh, and Vietnam,Government announced Rs.6,000 crore special package forapparel sector on22ndJune 2016.The targets set in terms of

numbers are ambitious. It aimsat creating one crore new jobs,generate additional US$ 30billion exports and attract Rs.74,000 crore investment inapparel sector over the next threeyears.

India is the second largestmanufacturer and exporter oftextile and apparel in the world.It holds a share of approx. 5% inglobal textile and apparel tradeof US$ 827 bn. The sectorcontributes to about 4% tocountry’s US$ 2.3 trillion GDP,14% to industrial production and15% to the country’s overallexports.

However, it faces dutydisadvantage in major markets of

EU and US while competingcountries like Bangladesh,Turkey and Vietnam have zeroduty access. The borrowing ratesin India are also higher (11 to12.5%) compared to competingcountries like China, Vietnamand Turkey (5 to 6%). Inaddition, the current labour lawsare neither suitable for industrywhich is seasonal in nature norsupport workforce to earn more.These factors have resulted inlower investments and capacityexpansion of garmentmanufacturing in India.

On one hand Textile andapparel sector in India suffersfrom these major hurdles ingrowth whereas on the other

hand it is one of the largestemployer in the country. Itemploys about 4.5 crore peopledirectly and about 6 crore peoplein the allied sectors. An apparelfactory generates approximately10 times more employment than

Continued on Page 4

European & Japanese textile industryhand-in-hand for FTA conclusion

From Tecoya NewsDeskMUMBAI, OCT. 06—

The Textile & Clothing (T&C) industry is a growing industryon worldwide basis. Operating in a very competitive environment,the EU and Japan are still taking leading roles in developing hightechnology and quality of fibres and fabrics as well as in creating

high value added apparels andfashion.

Both the EU and Japan arekey export markets for theirrespective T&C Industry. In thecase of the EU industry, Japan isthe 7thT&C export marketreaching almost Euro 1.9 billionFor the Japanese industry, the EUis the 3rd export market reachingalmost Euro 0.7 billion

Euratex, the EuropeanTextile and Apparel Confederation, and JTF, Japanese TextileFederation, maintain excellent relationship and complementarityactivities. The trade structure of T&C between the EU and Japan iscomplementary. Under those circumstances, both industries believethat a trade deal would expand the trade and investment in T&C

Continued on Page 4

PAGE 4. TECOYA TREND, FRIDAY, OCTOBER 07, 2016.

North declineBy Cotton Man

MUMBAI, OCTOBER, 06—The cotton prices in the northern region declined today while

a steady trend prevailed at other markets. Quality Rate Arrival in

BalesState Wise

NORTH ZONE (RATES IN MAUND)

Punjab (New) J-34 S/G Crop 4330 / 4340  J-34 R/G Crop   4350 / 4360 5000

Haryana (New) J-34 S/G Crop 4280 / 4290  J-34 R/G Crop   4320 / 4330 9000

Rajasthan (New) J-34 S/G Crop 4250 / 4290  J-34 R/G Crop   4380 / 4320 2500

CENTRAL ZONE (RATES IN BALES)      

Gujarat V-797 (Kalayan) 22mm 27000 / 28000(New) S/6 44000 / 45000

S/6 B Grade 44500 / 46000S/6 29 mm 3.8 mic 46000 / 46500 4500

Maha (New) MECH 45000 / 46000MECH 1 - 29 mm 3.5 mic 47000 / 47500MECH - 1 30 mm 3.7 mic 47500 / 48000 3000

M.P. (New) MECH-1 45300 / 46300MECH - 1 29 mm 3.5 mic 47200 / 47700 MECH - 1 30 mm 3.7 mic 47700 / 48200 

DCH-32 33-35 mm 57000 / 59000 4000

SOUTH ZONE (RATES IN BALES)      

A.P MECH - 1(Adilabad) 29mm 47500 / 48000  Bunny / Brahma (Warangal)  48000 / 48500    MCU-5 (Guntur)  48500 / 49000 500

Karnataka MECH-1 29mm  46500 / 47000Bunny / Brahma 30mm  47500 / 48000  

  DCH-32 34-35mm 57500 / 59500 NIL

Others - - - Total Arrivals 28,500

Printed, Published and Edited by Rakesh L. Sharma on behalf ofTECOYA TREND PUBLICATIONS PVT. LTD. from D-66,

Oshiwara Industrial Centre, Andheri Malad Link Road, Mumbai 400 104and Printed at TECOYA TREND PUBLICATIONS, D-66, Oshiwara

Industrial Centre, Andheri Malad Link Road, Mumbai 400 104

Indian Cotton Federation( Per Candy-2015-16 Crop)

State Grade Staple Mic Per CandyP/H/R ICS-101 Below 5.0-7.0 28600

22mmP/H/R ICS-201 Below 5.0-7.0 28900

22mmGUJ ICS-102 22mm 4.0-6.0 26500KAR ICS-103 23mm 4.0-5.5 32400M/M ICS-104 24mm 4.0-5.5 36500P/H/R ICS-202 26mm 3.5-4.9 40300M/M/A ICS-105 26mm 3.0-3.4 40500M/M/A ICS-105 26mm 3.5-4.9 42000P/H/R ICS-105 27mm 3.5-4.9 40900M/M/A ICS-105 27mm 3.0-3.4 41000M/M/A ICS-105 27mm 3.5-4.9 43000P/H/R ICS-105 28mm 3.5-4.9 41200M/M/A ICS-105 28mm 3.5-4.9 44500GUJ ICS-105 28mm 3.5-4.9 44000M/M/A/K ICS-105 29mm 3.5-4.9 45000GUJ ICS-105 29mm 3.5-4.9 44500M/M/A/K ICS-105 30mm 3.5-4.9 45500M/M/A/K/T/OICS-105 31mm 3.5-4.9 46500K/A/T/O ICS-106 32mm 3.5-4.9 47500M(P)/K/T ICS-107 34mm 3.0-3.8 55500

U.S. Futures Daily Cotton Market05 October 2016

Contract Open * High Low Close * Settle ChangeOct '16 0 0 0 0 68.03 -1.85Dec '16 69.66 70.00 67.53 67.69 67.82 -1.85Mar '17 70.09 70.37 68.10 68.12 68.36 -1.74May '17 70.43 70.64 68.41 68.62 68.75 -1.68Jul '17 70.44 70.64 68.65 69.03 68.81 -1.64* Open and Close prices reflect the first and last trade in themarket and do not correlate to any opening or closing period

COTTON ASSOCIATION OF INDIA

V-797 28200Jayadhar -------J-34 (RG) 42015MECH-1/H-4 45500

Sankar-6 45000MCU-5 49000DCH-32 57000

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the industry average for same investment level. Hence, this sectorholds the maximum employment generation potential. Taking intoconsideration the long standing demand of the industry andmaximize the employment and exports potential of the sector,Government announced special package for apparel sector.

Announcement of the special package has been very wellappreciated and welcomed by the industry at large. That being said,the industry has raised their concerns regarding the delay in theprocess of implementation of the package. The salient features andprogress made so far is delineated below:I. LABOUR LAW REFORMS

* Increase in overtime limit for workers in apparelindustry: The overtime cap per quarter will be increased fromprevailing 50 hours to 100 hours which is the ILO norm.Amendment in Factories Act shall be done by Ministry of Labour& Employment. The amendment will come into effect by November2016.

* Introduction of Fixed Term Employment: Looking at theseasonal nature of the industry, Fixed Term Employment isintroduced. A fixed term workman will be considered at par withpermanent workman in terms of working hours, wages, allowancesand other statutory dues. This move will enable the manufacturersto deal with excess demand and idle labour at different times. TheLabour Ministry draft notification formalizing the rules for suchemployment was rolled out on 4th August 2016. The amendmentwill come into effect by November 2016.II. EPFO REFORMS

* Government to bear entire 12% of employer’s EmployeeProvident Fund (EPF) contribution: Under PradhanMantriRojgarProtsahanYojana (PMRPY), 8.67% of employer’scontribution is borne by Government for all new employees enrollingin EPFO, for first 3 years. For apparel units, the rest of 3.67%employer contribution for workmen earning up to Rs. 15,000 permonth will also be borne by Government for 3 years. This willencourage employers to bring more workers into the formal sectorby reducing the wage costs of the employer.Ministry of Labour hasissued guidelines of Pradhan MantriRojgarProtsahanYojana(PMRPY) and the scheme is applicable from August 2016 for aperiod of 3 years. For apparel manufacturing sector, the refundmechanism is as under:

- Employers need to make online applications to TextileCommissioner Office which shall be certified, validated anduploaded to the PMRPY portal/ EPFO.

- The verified employers need to fill PMRPY form andmonthly ECR of the new employees with EPFO latest by 10th ofthe following month.

- The employer need to credit the 12% of the EPF contributionof the employees with EPFO. The payment of 8.33% EPS and 3.67%

Textile Package - Can this help in revival of the industry?Continued from Page 1 Col 6 EPF by the Government willthereafter be made to the employers.

* EPF is made optional for employees earning less thanRs. 15,000 per month: This would leave more money in the handsof the workers. It is likely to be notified by the Labour Ministry byNovember 2016.III. ENHANCEMENT OF CAPITAL INVESTMENTSUBSIDY UNDER AMENDED TECHNOLOGYUPGRADATION FUND SCHEME (ATUFS)

* The subsidy under ATUFS was increased from 15% to 25%for the garment companies along with raise in cap from Rs. 30crores to Rs. 50 crores. The key aspect is thatthis subsidy is outputbased and will be disbursed only after the expected jobs are createdafter a period of 3 years. The amendments have been made in theScheme on 25th July 2016 by Ministry of Textiles.IV. ENHANCED DUTY DRAWBACK RATE

* Currently duty drawback is provided to garment exports atan average rate of 8.16% which neutralizes Central Governmenttaxes. Provision has been made to subsidize the incidence of Statelevies as well by declaring an additional drawback rate.

* If a garment exporter imports the fabric under AdvanceAuthorization Scheme, he is not eligible to get drawback even forother indigenous components. This anomaly was also removed.

* The Scheme for Rebate of State Levies (ROSL) on exportsof garments has been notified by the Ministry of Textiles on 12thAugust 2016. The scheme is operational from 20th September 2016.V. RELAXATION OF SECTION 80JJAA OFINCOME TAX ACT FOR ADDITIONAL TAX BREAKS

According to the existing provision, a manufacturingcompany with minimum 100 workmen can claim deduction of 30%of additional wages paid to new regular workmen in a factory for 3years including the year of employment. However, one of theeligibility clause is that the workman should have been employedfor a period of minimum 240 days. But, owing to the seasonal natureof the apparel manufacturing units, factories are functional onlyfor around 6 months a year and are not able to take much benefitunder this section. Hence, the minimum requirement of 240 dayshas been relaxed to 150 days. The guidelines are yet to be notifiedby the Department of Revenue.

The package for textile sector is definitely a good start tomake India competitive in the global market. The largermanufacturing set-ups will become feasible thereby leading toeconomies of scale in the sector which will help in executing largequantum of export orders. Also, more and more garment units willbecome compliant with respect to statutory dues and more jobswill be created in the formal sector. The benefits arising out of thepackage will be clearer in 4-5 months’ time. However that beingsaid, to yield better results, it will very important for India to worktowards finalization of free trade agreementswith important marketsespecially EU.

between the two parties andpromote further businessdevelopment. It would also buildplatforms in various types ofR&D cooperation, therebycreating new innovations andbusiness opportunities.

Over the last years, bothassociations have had deepdiscussions on the way to reachan agreement that will benefitcompanies from both parties.They recently agreed on majorissues, as for tariffs eliminationand rules of origin.

Mr. Piolat, President ofEuratex, emphasized theimportance of the JointStatement by stating that: “OurJapanese colleagues believe, likewe do, that the rules should beadapted to the structure of ourindustries and that we both arebest judges of what works for ourindustries. I am therefore veryhappy that we can share thisJoint Statement and I urge thenegotiators both sides to take itinto due consideration”.

EU-Japan FTAContinued from Page 1 Col 2

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Hohenstein discusses product claimvalidation strategies at IFAI

From Tecoya NewsDeskMUMBAI, OCT. 06—

Product performanceclaims help educate consumersand differentiate brands at retail.However, sometimes themarketing team wants to pushthose claims a little farther thanthe legal team believes isadvisable.

Science based,independent testing can oftenbridge the gap, providing themarketers with the data theyneed for their campaigns andgiving the lawyers thedocumentation they require.

Unfortunately, today’sfunctional textile innovationssometimes outpace thedevelopment of standardizedtests to evaluate them. In thatcase, companies must work withlaboratories to design customtesting programs that accuratelyand scientifically profile aproduct’s performance withoutthe relying solely on published

standards.Dr. Jan Beringer, the Head

of Development at Hohenstein’sDepartment of Function andCare, will describe howcompanies should approach thatsituation. Entitled “NewFunctionalities Require Out-of-the-Box Thinking toSubstantiate Claims,” thepresentation is part of the IFAIExpo Advanced Textilesprogram and will be held onTuesday, October 18 at 4:45 PM.

“Hohenstein is a researchinstitute as well as a testinginstitute so we are verycomfortable being out-of-the-box,” explains Beringer. “Thatunique perspective ensures thatour scientists evaluate aproduct’s performance benefitsfrom the consumer ’s point ofview in addition to consideringavailable standardized tests.Marketers need every fact andfeature to be competitive in

today’s challengingmarketplace.”

Hohenstein, a sponsor ofthe IFAI Expo Testing Program,will also demonstrate severalnew testing technologies in theIFAI Expo Testing Demo Zone.These technologies include aportable, standalone, affordable(less than $1,000) 3D scanner forsize matching.

The Hohenstein Groupprovides a unique, broad rangeof textile services includingproduct compliance testing, theentire OEKO-TEX® brandportfolio, and productperformance testing. The rangeof performance tests includesclothing physiology assessmentsfor quantifying comfort and fit,3D scanning, sizing andpatternmaking, and independentevaluations of technical featuressuch as UV protection, moisturemanagement, compression, andantimicrobial performance.

MSMEs growth key for country’s development: ChaudharyCHANDIAGRH, OCT. 06-(PTI)

Emphasising on the needto give push to Micro, Small andMedium Enterprises (MSMEs),the Centre today said the sectoris capable of providing newdimension and push to country’sdevelopment.

“Since the MSME sector iscapable of provide newdimension and push to country’sdevelopment, partnership efforts

are welcome so that buddingentrepreneurs are made aware tostart their small industry bybeing independent,” UnionMinister of State for MSMEHaribhai Parthibhai Chaudharysaid in his keynote address at the4th Regional MSME Conclaveorganised by CII here.

He also lauded a numberof schemes of the governmentwhich focus on generatingemployment.

The minister alsohighlighted schemes of thegovernment aimed at providingaccess to finance through financefacilitation centres along withMSME databank and incubationcentres.

The Centre is keen tostrengthen industrial clusters allover the country as well asresearch and developmentinitiatives for industrial growth.

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