4 Indian killed in fire at Textile shop-house

March 10th, 2010

JOHOR BAHARU, (Bernama): Demolition of textile shop-house by fire at Jalan Pasar, Masai resulted in the killing of four Indians early on 10th March 2010.

Mr. Syukor Sani Hashim, the Fire and Rescue deputy director at Johor explained that fire shattered 2 shops of textile material and 2 stationary ones also.

“Among the victims, two of them were working in the shop of textile material and other 2 were friends. The burnt out remains are still left to be identified,” said he to the reporters and other inquirers at the fire location.

Mr. Syukor Sani explained that the 2 victims were located upstairs; one was there over the staircase while the fourth one, at the ground floor in the double story shop-house.

It is being believed that the four of them were asleep while the fire broke over at the front area of the textile shop house.

Two of the fire engines, from Johor Baharu and Pasir Gudang quickly rushed towards the location right when the information about fire stuck up at 3.15am in morning and brought all things under their control within 10mins of time.

“Arson is being expected to be involved since a 4 litre container of petrol was located from the fire area. Losses are still left to be determined”, he explained.

During this, Muthu Veeraya, the owner of the shop said that he was in Kuala Lumpur when the fire information came at 4am.

“Both workers had started working only 2days ago”, said the trader of textile who’s in business since 16years.

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Impact of Budget Day on textile stocks

March 9th, 2010

With joyous feelings towards Budget 2010, NBFCs, non-banking finance companies have been singled out by the stock market along with public sector banks as leading sector beneficiaries.

During this week, due to the Budget, NBFC’s stocks such as Bajaj Auto Finance, Shriram Transport Finance and Reliance Capital are ahead some 7-12%, as per the prospects of RBI, Reserve Bank of India, dealing with banking licenses.
Price movement study carried after the final four Budgets correctly explains that acquired Budget-day largesse that too in type of favorable policy announcements didn’t hold firmly over the profits in followed year. Even the sectors, battered ones, because of the ‘unfriendly’ budget didn’t continue to exist at the same vein after that.

Moves that didn’t last longer

Few cases should be considered. A sudden cut of excise duty over the small cars reflected a jump of some 12% in the stock of Maruti Suzuki during the following week after Budget February 2008. Within an years time, 30% of value had been lost in the stock. In Budget 2006, companies dealing with textile trade were rewarded on Budget Day with higher allocation to textile up-gradation fund and duty cut. After an year’s time approximately, even while 31% sensex had soard, few stocks still managed to trade at lower percentage, say 25-35%. In fact, textile sector was a regular receiver of flourishing announcements in Budgets – 2005, 2005 and 2007. Still, the stocks did not do any good more than anything at sensex during any of these years.

During 2007, on Budget day itself, real estate companies battered 5%, right after the served proposal to impose service tax over commercial/residential property rentals. But the stocks outpaced sensex with some 66% profit during the following year.

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Raised interest subvention for exporter of garment industry

March 8th, 2010

Textile ministry has moved ahead to urge government for extending the benefits of at least 2% interest subvention to garment industry that was purely ignored with the general proposals given in the budget 2010-11, forwarded by Mr. Pranab Mukherjee, Minister of Finance, recently in Parliament.

“Garment sector, we believe has been very much neglected by not being provided extention of 2% subvention. The matter is being taken up to the ministry of commerce”, expressed Textile ministry Sectretory, Rita Menon in New Delhi during a function organized by VDMA Germany machinery manufacturers association and FICCI.

“The proposal has already been taken up with the minister of finance and the points related with the provisioning of funds with the ministry of commerce with the view that most of the requirements of garment manufacturers of India should be given priority through the instruments of Budget given by the ministry of commerce” , added Menon.

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Ongoing sops for textile, leather industry: Sharma

March 4th, 2010

Dealing with the controversies containing sectors like leather that have been expelled from the export subsidy in credit scheme of budget, Mr. Anand Sharma, Minister of Commerce and Industry said that he will forward the matter to Mr. Pranab Mukherjee, the Minister of Finance and held up into further discussions soon.

“Few of the sectors are likely to get hurt just like leather…I will be taking up the matter with the Minister of Finance,” said Mr. Sharma when questioned about the elimination of variety of other sectors with in the 2% interest Budgeted subvention scheme. He explained things to the reporter.

The 2% subvention scheme is likely to get expired on coming 31 March 2010; Mr. Mukherjee had given an extension to it specifically for carpets, handicrafts, SMEs and handlooms for period of one more year. The authentic scheme covered exports of gems, textiles, jewelry and leather.

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Textile sector of Mauritius need expansion: Minister

March 2nd, 2010

Port Louis: According to the Minister of Indian Ocean Island’s Industry ministry, the textile firms of Mauritius that are engaged in supplying European chains like Inditex’s Zara and Next, require additional or new export markets along with more valued products in order to continue within the competition.

Economy’s tradition cornerstone, the sector exposed to the ending European preferential deal of trade, which was affected by the global economic downturn during the previous year and the executives of the company are afraid that strong local currency might hurt it more.

“In order to compete in the best manner, Mauritius has to put in good efforts for up-grading the chain of value added products. Mauritius cannot sustain to be a producer of textile only in manufacturing of the basic items of textile”, said Dharambeer Gokhool.

“Much intense situations can be seen in the competition at the lower segments of the textile market. It is important for Mauritius to grow on the global standards within the textile industry for developing value added products of textile with brands and designs”, said the minister.

The sector is reflecting growth by 1% within the current year after getting shortened up to 4% during 2009.
Major markets for textile for Mauritius are France, Italy and Germany. Approx 6.5% of contribution is provided by textile in the gross domestic product range providing some 11% of the all total jobs.

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No such benefits are expected from Budget by Textile industry

February 24th, 2010

Ahmadabad: Union Budget is around the corner, textile sector is losing all hopes of getting favorable moves. In spite of approx $62 billion worth textile industry of India, knocking on the doors of Union finance minister with a huge list of demands, negatively structured budget is being expected from Pranab Mukharjee. Industry, that resisted and survived even in extreme financial crisis, is now hoping of clocking around 10% rate in growth during 2010-11. In order to let the momentum keep rolling, incentives are expected from the government by the industry.

Primary focus of the Government for incentives is over the social sector, so textile industry is not expecting much better steps in the 2010-11 Budget. Certain things might come within this way under TUFS, Technology Upgradation Fund Scheme, apart from them most other demands are expected to be ignored, said players of the industry. Displeasure has already been expressed by Mr. Dayanidhi Maran over the issue of seeking incentives. He has been continuously insisting that industry people should concentrate over the alternative destinations for export and even in domestic market with the purpose of growth.

Amount of 4,500crores is waiting to be disbursed to the textile industry for TUFS; people dealing with the textile market believe that this demand is the only one that can be expected to be fulfilled in the Budget. Rs 1,500crores have been sought by the Confederation of Indian Textile Industry, in order to erase the backlog of 1009-10 and another additional amount of approx Rs 3,000crores for 2010-11. It is being expected that the finance minister might allocate some “substantial amount” under the TUFS category to the textile industry.

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Expectations by the Exporters of Tirupur

February 23rd, 2010

Knitwear industry of Tirupur is on the target for getting stronger growth in the exports. But it has not been that much easier for the other industries, behind the scenes.

Dyeing forms the backbone of textile unit. But Tirupur’s odd dyeing units, around 700 in numbers that serves knitwear industry worth 16,00crore has been facing terrible situations due to the environmental issues.

Newly introduced regulations by the government forced the dyeing units to migrate up to zero discharge process. Proposal provided by the government explained that effluent treatment plants are being laid down on private public partnership with the state and central government providing 75% of entire expenses.

Few of the units are small in size with turnover of some 20lakhs. Debt of this amount is quite big for them. We simply want the government to keep up its promise and keep an eye over the industries that serves as backbone, in future, “Samiappan, President of Tirupur’s Dyers Association said.

Coimbatore, on the other hand, suffered much deeper situation. Most of the small and medium sized enterprises were adversely affected due to the economic slowdown. But now the recovery signs are smarter, reason being, most of the US and European industries that were bankrupt come here.

James, a supplier of tier II, to manufacturers of textile machinery, is quite flourishing with the orders. However, in contract, James has to struggle a lot for getting back the workers who were retrenched during the economic slowdown.
“We are hoping that NREGA norms of employment will be tightened in the Budget. Since good days are back, and if government takes necessary actions, soon we’ll be able to show our fast growth pace,” said James.

So, better prospects are reflected in the biggest industrial sector of the country and businesses are waiting for the Budget with baited breath.

Lessons understood with fierce times always come in flourishing opportunities.

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Stimulus packages supported generation of more jobs: ASSOCHAM

February 22nd, 2010

During the period of economic recession, stimulus packages were offered by the government that helped a lot in generating additional amount of employment with some 19% rise within the period of October-January 2009-10, expresses the study processes conducted by ASSOCHAM, Associated Chambers of Commerce and Industry of India.
Stimulus packages provided by international agencies and some other countries during the period of crises was of great help in the revival of exports and imports along with the revival of Indian-International trade, explained the study.

Event management and advertising were the other sectors that helped in generating additional employment. Around 65% additional employments was generated by consultancy services and research kind of sectors during October-January 2009-10 during the same period during last year, said the study.

Employment structure moved over by 27% in financial and insurance services with some growth in sectors like jewelry, telecom, engineering goods, gems, entertainment, media, warehousing and computer hardware.
However, employment growth in sectors such as banking reduced with 7% and negative growth of employment generation was registered in sectors like agriculture, textile sector, IT and FMCG, expressed the study.

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VAT reduced for pharma and textile sector

February 19th, 2010

AHMEDABAD: Good news for Gujarat based chemical manufacturing business, both dealing in pharmaceutical and textile sector that the state commercial tax department has finally agreed on the issue of reducing rate of VAT, Value Added Tax for some 70 chemical units from approx 15% to 5%. New interest rates will immediately come to an effect.
Apart from this, a notification by state government provides an information 4% tax will be levied on the stainless steel products in case of any further material imports from cities outside Gujarat. Tax has been withdrawn levied over entry of silk yarn.
“VAT rates were raised by state government some six months ago amounting to 5-15% which brought affect over the new and existing investments in pharmaceutical and textile business  outside Gujarat. This worked as a kind of wake up call for the state government, effect of which is that rates are again at par now as per the states,” said Mehul Gandhi, President of GSTBA Gujarat Sales Bar Association.

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Signs of revival in Textile Industry

February 18th, 2010

New Delhi: Textile Industry, largest employment provider after agriculture sector, is finally out of economic recession, declares Mr. Dayanidhi Maran, Textile Minister, who had been dragging all around the world for searching new and improved markets for Indian garment and clothing throughout the downturn.

“Signs of revival can be seen in the Textile Industry of India symbolizing it to be the very first sector to rebound in the country,” said Maran, who quoted this in a CII release at roundtable conference in Mumbai on 16th February 2010. Recession can be seen as complete over since order book of the garment manufacturers are full up till June, he added.

Textile sector of India, that provides majority of contribution to the earnings by exports, showed growth of 5% during December which was 7% during January as against a negative rate of growth that was 15% from April till November 2009. Exports of Textile had shrunk up to 2% to approx $21.75 billion during 2008-09 due to the low ranging demands from the western markets as an effect of the economic downturn.

Since orders were dried up, units in thousand were shut and there was a loss of around 7lakhs during 2008-09, as per the estimate by CII. Around 35 million people are employed by this sector. Maran had been laying stress for the development of bigger markets other than US as an effective alternative for leading business delegations to other countries.

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