Posts Tagged ‘Textile sector of India’

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Silver lining: Exports of textiles to US on the rise

Tuesday, May 18th, 2010

M Allirajan, TNN, May 18, 2010, 12.21am IST

COIMBATORE: After declining for several months because of the global financial meltdown, textile exports to the US are finally back on track, recording growth in February and March. Textile and apparel exports to the US, which account for more than a quarter of shipments made by the industry, rose 8.3% year-on-year (y-o-y) in March to $487.8 million. Exports increased 7.7% y-o-y to $443.5 million in February, data with the office of textiles and apparel, US Department of Commerce shows.

Apparel exports to the US, however, posted a modest 2.8% growth in March to $315.1 million. “Demand has started to pick up in the US. The bookings are quite reasonable and (trade) enquiries have also been quite good,” says Premal Udani, chairman, Apparel Export Promotion Council (AEPC).

“We are seeing a real improvement across all segments of the industry. Orders are coming in and after nearly two years of slowdown we are witnessing a recovery,” says P Nataraj, managing director, KPR Mill. “The recovery is slowly taking shape in both domestic and international markets.” “This year (fiscal 2011) would definitely be better,” says A Sakthivel, president, Tirupur Exporters’ Association (TEA).

Garment exports to the EU, the largest market bloc for Indian markets, however, continues to remain weak. “Europe (demand) is somewhat weak because of the uncertainty faced by some countries (in the region),” says Udani.

“Orders to EU countries have been quite weak but the US has been much better,” says an exporter. Apparel exports to the EU are estimated to have come down by 16.8% to $4.5 billion in fiscal 2010.

While the industry is seeing a silver lining, some officials advise caution. Though inquiries are good, exporters are finding it difficult to convert them into orders as they have been adversely hit by rising raw material prices and the rupee appreciation, says Sakthivel.

News Source is http://timesofindia.indiatimes.com

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Nigeria-India trade volume hits $10 billion

Thursday, May 13th, 2010

BY NGOZI SAMS

The trade relationship between Nigeria and India has been robust and relatively balanced, says Mahesh Sachdev, the Indian High Commissioner to Nigeria, when he led a delegation of some Indian businessmen to visit Jibril Martins-Kuye, the minister of Commerce and Industry on Tuesday.

“India is Nigeria’s second largest trading partner with the total volume of trade according to our statistics nearly $10.3 billion,” he said. “On the industrial front, Indian companies in Nigeria are also second largest in terms of employment of Nigerians.

The first is federal government in terms of employment while the second is Indian community and Indian-based companies taken together today contribute employment of Nigerian people. Among the companies where India has the top position are steel, power sector and pharmaceuticals.”

Mr. Sachdev said this is significant as there are just about 30,000 Indians in Nigeria, less than 1.5 per cent of the total Nigeria population. India is therefore seeking more ways to boost bilateral and financial ties with Nigeria. He was however silent on the usual accusation of injustice against the Indian employers by most Nigerian employees.

“Initially the visit was to four countries but keeping in view our close ties with Nigeria and the fact that Nigeria’s textile industry deals with the Indian community, it was decided that we include Nigeria in the list,” he said. “We are here to showcase our expertise and offer our experience on the very important task to bring Nigeria’s once mighty textile industry and cotton growing population.”

Ravid Vanger, the leader of the delegation and deputy permanent representative of India at the World Trade Organisation, added that India and Nigeria share long commercial ties.

Source of this news is http://234next.com/csp/cms/sites/Next/Money/5567732-147/nigeria-india_trade_volume_hits_10_billion.csp

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Indian ban on cotton export affects Pak importers

Wednesday, May 5th, 2010

Wednesday, May 05, 2010
KARACHI: The Indian government has not only banned the export of cotton but also imposed Rs2,500 per ton export surcharge on the export of Indian cotton to save their local textile industry. This ban has seriously affected Pakistani importers of cotton from India, who had booked about 200,000 bales, says a press release issued here Monday.

Federal Adviser on Textile Dr Mirza Ikhtiar Baig today talked to the Pakistani High Commissioner in India, Shahid Malik, and requested to take up this matter with the Indian authorities to allow shipment of cotton for which sales contracts have been already executed. The Indian government has asked exporters to re-register their valid contracts to allow export of cotton on monthly pro data basis.Dr Baig requested the Pakistan high commissioner to arrange to expedite the process of re-validation of contract as there is a serious shortage of cotton for the textile industry in Pakistan.

News printed in http://www.thenews.com.pk/

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Govt willing to withdraw duty sops levied on cotton yarn exports

Saturday, April 24th, 2010

Four percent incentives levied on exports of cotton yarn with the aim of maintaining their prices within the domestic market might be withdraw soon by the government very soon.

Benefit of four percent duty provided to the exporters of yarn under the scheme named Duty Drawback might be withdrawn very soon, told sources, further telling that the government was willing towards imposing export duty over the cotton yarn.

On 21st April, another scheme of export sop on yarn called as DEPB, Duty Entitlement Pass Book was withdrawn.

Alongside, the exporters of yarn are being urged to register their textile dispatches which the Commissioner of Textile.

Incentives can be available by exporters either under Duty Drawback Scheme or DEPB.

On 6th April, Finance Minister discussed and expressed ways of checking yarn and cotton prices in an inter-ministerial meeting.

Prices of cotton yarn have been raised by more than 30per cent during the previous three months time.

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4 Indian killed in fire at Textile shop-house

Wednesday, 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

Tuesday, 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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Textile sector of Mauritius need expansion: Minister

Tuesday, 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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Expectations by the Exporters of Tirupur

Tuesday, 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

Monday, 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

Friday, 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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