29 August 2023, Mumbai

The Textile Ministry's recent proposal to introduce a Production Linked Incentive (PLI) plan tailored for the garment and made-ups sector seems to have hit a roadblock, as per insider information.

Focal point

The focus of this proposed plan was to support the country's garment manufacturers by offering incentives.

However, the Finance Ministry's reported rejection has caused a setback. The proposal aimed to extend the PLI scheme to encompass all materials, but the Finance Ministry apparently resisted lowering the investment and turnover limits as suggested by the Textile Ministry.

Efforts by the Textile Ministry to expand the successful Production Linked Incentive (PLI) scheme to include the garment and made-up sector have been met with resistance from the Finance Ministry. The original scheme had bolstered various industries, and the Textile Ministry sought similar benefits for garment manufacturers.

The secret lies in making investments happen

However, the Finance Ministry's reluctance to reduce the investment and turnover thresholds has led to a standstill. The proposed extension aimed to encompass all materials, including cotton, but disagreement over criteria persists.

In a bid to attract more investment, the Textiles Ministry has extended the deadline for investor applications until August 31, 2023. The ministry is confident that this move, coupled with the recent flexibility introduced in the criteria for the original PLI plan, will lead to increased interest.

Despite setbacks in expanding the scheme to garments and made-ups, the Textiles Ministry remains proactive in fine-tuning its approach to incentivize the textile sector's growth.

The Textile Ministry's attempts to revamp the PLI scheme have encountered obstacles due to varying perspectives within the government.

Dithering; While the ministry aimed to expand the successful incentive program to benefit the garment and made-up sector, the Finance Ministry's concerns about altering investment and turnover criteria led to a stalemate.

The Textile Ministry's decision to extend the investor application deadline showcases its determination to drive textile industry growth through strategic modifications while navigating bureaucratic complexities.

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The Hindustan Chamber of Commerce (HCC) is set to host the "ASIATEX 2023" Textile Trade Fair from August 31 to September 2, 2023, at Mumbai's JIO World Convention Centre, BKC.

5th edition of B2B fair

The 5th edition of this B2B Fair marks a significant milestone for HCC, celebrating its 125-year journey. The fair will comprise 125 stalls, representing major textile hubs like Mumbai, Bhiwandi, Surat, Ichalkaranji, Bhilwara, and Ahmedabad.

A multifaceted display

The event will showcase an extensive array of textile products, including yarns, fabrics, technical textiles, home textiles, and more, predominantly by manufacturers and exporters. The fair anticipates a footfall of over 15,000 visitors across three days.

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25 August 2023, Mumbai

The textile and apparel industry is grappling with a decline in exports and a significant loss of jobs.

Government Response: The Indian government is considering providing fiscal incentives to the industry by the end of the year.

PLI Program: The incentives could be channeled through the production-linked incentive (PLI) program, which has been designed to inject financial support into various manufacturing sectors.

Industry Request: The industry has requested that the government provide incentives specifically aimed at smaller manufacturers and reconsider the 11% import duty on certain varieties of cotton.

Concerns: The industry is concerned about potential job losses and is urging the government to take comprehensive measures to support the sector.

Latest Textile Events

07 August 2023, Mumbai

Operating leverage

Vardhman Textiles Ltd, a key player in the textile industry and part of the Vardhman Group, faced a significant decline in Q1 net profit, plummeting by 58% to Rs 136 crore ($17 million) compared to the previous year's quarter.

The April-June quarter also saw an 18% decrease in revenue from operations, down to Rs 2,318 crore.

Despite its premium shirt production for retail giants like Van Heusen, Benetton, Sisley, and Colorplus, the company encountered a challenging financial period.

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04 August 2023, Mumbai

The spinning industry in Ludhiana, a major employment generator in the city, is currently facing a significant crisis due to duty and tax irregularities.

According to Gagan Khanna, the chairman of Arisudana Spinning Mills Limited, the inverted duty structure on MMF (Man-Made Fibre) chain is causing a major issue.

Industry leaders seek removal of import duty

Raw materials like viscose and polyester staple fibre are taxed at 18%, while the yarn is taxed at 12%. This disparity results in a considerable accumulation of GST refunds, leading to a blockage of working capital, an inability to take GST credit on capital goods, and a time-consuming and cumbersome process for obtaining refunds.

Trade pacts

Khanna also pointed out that polyester staple fibre is not covered under the ASEAN FTA (Free Trade Agreement), whereas polyester spun yarn is included.

This lack of inclusion leaves domestic producers with no chance to compete with finished goods in the market.

Kamal Oswal, the vice-chairman of Nahar Group, highlighted the negative impact of the 11% import duty on raw cotton, which was imposed in October 2021. This duty has rendered the entire Indian cotton spinning industry unviable.

Level playing ground

Domestic prices have been on average 10% higher than ICE future prices since the introduction of this duty, resulting in a significant decline in exports, the closure of spinning mills, and a substantial loss of employment and export revenue.

In response to these challenges, the industry leaders have approached Rajya Sabha MP from Ludhiana, Sanjeev Arora, seeking his support in addressing their concerns with the government.

They hope that he can help find solutions to sustain the existing industry and attract fresh investment in the textile sector.

Call to action (CTA)

The industry leaders are urging the government to take specific actions, including removing the 11% import duty on raw cotton, including polyester staple fibre in the ASEAN FTA, and implementing the BIS (Bureau of Indian Standards) standard on polyester spun yarn.

They firmly believe that these measures will revitalize the spinning industry in Ludhiana, create more jobs, and drive economic growth in the region.

Latest Textile Events

22 August 2023, Mumbai

MyTrident, the flagship domestic home furnishing brand of Trident Group, a USD 2 billion conglomerate, unveiled its Fall-Winter'23 collection yesterday at Andaz, Aerocity, New Delhi.
The 5-day meet was inaugurated by Dr. Rajinder Gupta, Chairman Emeritus of Trident Group, in the presence of over 3,000 retailers.

The brand offers a unique and seamless online shopping experience through myTrident.com and intends to leave an indomitable mark across retail touchpoints including EBOs, multi-brand stores, general trade, etc. MyTrident aims to cross a revenue of INR 1,000 crores by FY 2025-26.
Background

Starting its journey in India in 2014, MyTrident is today amongst the leading brands in home furnishing across home and HORECA in India.

Its growth has been driven by doubling the point of sales, adding new categories, and diversifying the range based on the evolving needs of the consumers.

Currently, the company has a retail network of 3,500+ retail touchpoints including 50 exclusive stores across India.
Speaking about the expansion plans, Dr. Rajinder Gupta said, "At MyTrident, we are bullish about the company's prospects which include ramping up our retail business operations across India.

Vision

Our ambition is encapsulated in our slogan 'ghargharmeinMyTrident' to offer accessible luxury to every Indian household. We are building on the trust and respect enjoyed by the company over 30 years.
We are The company plans to aggressively expand to 10,000+ retail touchpoints including 100 exclusive stores by the end of FY2025-26. We remain committed to offering unparalleled quality and a seamless shopping experience to our consumers."
The event also saw the launch of The Good Paper's new copier packaging and notebook designs.
Lineage

The Fall-Winter'23 collection from MyTrident is inspired by the rich heritage and culture of India. The collection features a wide range of products, including bed linen, towels, curtains, rugs, and home décor items.

The products are made from high-quality materials and are available in a variety of colors and designs to suit every taste.
The collection has been well-received by retailers and is expected to be a hit with consumers. MyTrident is confident that the collection will help the brand achieve its ambitious growth goals.

Latest Textile Events