03 November 2021, Mumbai:

Knitwear company Rupa’s profit increased 17 percent for the September quarter, helped by higher sales and cost reduction strategies. Sales increased 21 percent. The company has seen improved traction during festivities and expects a much better second half of the year.

Focusing on increasing sales volumes with changes in the product mix, Rupa plans to increase its share in the premium and super-premium category, improve its focus on women’s wear, casual wear, and thermal wear, and foray into newer markets with higher penetration in the existing markets.

With a focus on increasing the distribution network across India, Rupa expects this cost to remain at a similar level going ahead. Ebitda and profit increased on the back of improved operating efficiencies and cost reduction strategies.

With a focus on improving the product mix, a comprehensive product portfolio, deepening reach along aggressive management focus, Rupa is well poised to outperform industry growth and gain market share.

The innerwear category, estimated at Rs 30,000 crores, accounts for ten percent of the total apparel market and is expected to grow at a compounded annual growth rate of 10 percent over the next decade.

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02 November 2021, Mumbai:

India's home textile exporters are expected to boost revenue by over 20% in fiscal 2022, as well as increase worldwide market share, thanks to strong retail sales in the US and a stronger prognosis for the forthcoming festive season in export-dominated countries.

Homegrown domestic textile exporters are likely to benefit from global corporations adopting a "China plus one" sourcing model. According to a report by Crisil, a major rating organisation, this was based on an analysis of 50 home furnishing export companies.

This fiscal year, Crisil expects the companies it studied to increase their operating profitability by 200-250 basis points to 18%. It's worth noting that exports account for 60% of India's home textiles business, which is worth Rs. 55,000 crore.

"Export demand has been good so far this fiscal," said Gautam Shahi, Director of Crisil Ratings, "and is likely to be strong in the third quarter, as the impact of the pandemic wanes."

The United States represents 55% of the Indian home textile sector's export income. According to Crisil estimates, exports to the market increased by 42% year over year in the first half of calendar 2021, compared to 15% growth in the pre-pandemic period of calendar 2019.

The strategy of 'China plus one' is certainly working. This is reflected in a dramatic increase in India's proportion of US imports of cotton bed sheets and terry towels from 46% in calendar 2020 to 51% in the first eight months of calendar 2021, compared to 46% in calendar 2020, while China's share has decreased to 16% from 20%.

When compared to pre-pandemic levels of 68 percent, the average capacity utilisation of three significant listed home textile operators in the bed linen segment grew to 87 percent in the first quarter of the fiscal year. The RoSCTL plan will be extended through March 2024, and improved capacity utilisation will help offset the significant increase in cotton prices, which is the major raw material.

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30th October 2021, Mumbai:

As reported earlier 'The Goods and Services Tax (GST) Council' proposed to hike the rates uniformly from 5 percent to 12 percent for garments agonistic of their pricing & categories.

The step has widely been understood at the granular level will hurt & hit the MSME sector as the increased GST rates will only cause deep disruption by creating bottlenecks for the industry which is ravaged by the second wave of covid-19 & still is in the recovering mode only.

According to trade expert, Dr. Animesh Saxena- Managing Director, Neetee Apparels- a prominent garment exporter in NCR-Capital region and President of Federation of Indian Micro and Small & Medium Enterprises (FISME) the measure is retrograde & is quite definitely going to undermine the garment industry recovery as it drives prices up.

However he is taking a sympathetic view both on the industry & the authorities stand on proposed revision in GST taxes “Understandably, It is owing to the input cost pressures out of key raw-material yarn which presently has a GST of 18 percent with no recovery in the supply chain, and as a course correction to that the government is forced to contemplate/ look into these impending changes.,” explained Saxena.

He also avers categorically, “Government needs to sooner than later needs to seriously address the disruptive inverted duty structure and needless to state work urgently on the refund mechanism to help decisive trade recovery,”

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03 November 2021, Mumbai:

For the second quarter, Bombay Dyeing’s total income was Rs 509.87 crores against Rs 225.79 crores in the corresponding quarter of the previous year and Rs 395.39 crores in the previous quarter.

Net profit was Rs 93.35 crores against Rs 90.68 crores in the corresponding quarter of the previous year and Rs 107.91 crores in the previous quarter. For the six-month period, the company's total income was Rs 905.26 crores against Rs 321.83 crores in the previous year.

Net profit was at Rs 201.26 crores for the six-month period compared to Rs 219.93 crores in the previous year.

Bombay Dyeing is one of the seven producers of polyester staple fiber in the country with a market share of about 15 percent. Bombay Dyeing entered the business in 2006.

The company produces a wide range of specialty products, including microfibers, super microfibers, trilobal, super high tenacity, optically white, optical white super high tenacity, micro super high tenacity, black, and black super high tenacity.

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01 November 2021, Mumbai:

For the second quarter Gokaldas Exports has reported total income of Rs 445.9973 crores as compared as compared to Rs 242.9873 crores during the earlier quarter.Net profit was Rs 28.6115 crores as against Rs 2.5522 crores for the earlier quarter.

Total income was Rs 445.9973 crores during the second quarter as compared to Rs 344.8942 crores during the same quarter last year. Net profit was Rs 28.6115 crores for the second quarter as against Rs 8.6651 crores for the same quarter last year.

For the six month period total income was Rs 688.9846 crores as compared to Rs 582.1905 crores for the earlier six month period. Net profit was Rs 26.0593 crores for the six month period as against Rs 4.4054 crores for the earlier six month period.

Gokaldas Exports’ units were completely shut due to COVID 19 restrictons between April 29, 2021 and July 4, 2021. Operations remained shut for most of May 2021 and worked at 30 per cent capacity in June 2021. The company resumed full operations from July 5, 2021.

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30th October 2021, Mumbai:

DLF Mall of India in Noida has on-boarded more than 20 new brands in the September quarter.

These cover retail stores across fashion, beauty, electronics, and food and beverage. The aim is to open another five stores by the end of October. The property has upgraded its retail and food and beverages portfolio by bringing in newer brands and first-of-its-kind concepts.

DLF Mall of India has opened three new international fashion brands: the first ever Nike Rise flagship store in the country, Levi’s Tailor Shop and global lifestyle brand Guess. The beauty category was further strengthened by the country launch of Anastasia Beverly Hills. Other newly introduced brands include home-grown labels such as Fizzy Goblet, Miarcus and House of Fett.

The markets are seeing a resurgence due to pent-up demand.Malls, however, were slow to recover from covid-19 induced lockdowns as shoppers preferred to shop in open markets, and local, state-level restrictions on shopping centers led to restricted opening of malls. Rating firm Crisil said revenues of shopping malls declined 45 per cent last fiscal; it expects revenues of shopping malls to grow 45 per cent to 55 per cent this fiscal.With increasing inoculation, and life returning to normalcy, the retail industry is confident of seeing an upward swingin business.

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02 November 2021, Mumbai:

The Lycra Company has launched the Lycra ONE Online Network Exchange, an online customer portal that "empowers brands, retailers, and garment makers to connect to a global network of mills all in one convenient platform focused around the science of comfort, fit, and performance," according to the company.

The new site, according to the business, fills a gap that existed even before the epidemic, allowing brands and retailers to engage with mills and manufacturers virtually "without sacrificing the intrinsic benefits of an in-person connection."

They may "source fibre solutions utilising the digital fabric library" and "directly interact with mills to start or grow business partnerships, learn about capabilities, and examine product catalogues," according to the company.

Julien Born, CEO of the Lycra Company, stated that the company has a "strong history of invention" and that it "must embrace digital transformation." The portal's debut takes advantage of our connections across the clothing and personal care value chains, providing a one-stop, seamless solution for quickly moving our customers' ideas from concept to launch.”

Users can access exclusive information such as webinars, white papers, and films covering new fibre technologies, industry trends, marketing, sustainability, and more through the portal's knowledge centre. Trademark licence agreements and fibre certifications can also be requested.

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01 November 2021, Mumbai:

John Lewis Partnership PLC said on Friday that it has received a new environmental credit facility worth 420 million pounds ($579.3 million). The credit line is connected to environmental standards, according to the British retailer, which owns the John Lewis department store chain and the luxury supermarket Waitrose.

The goals are to be net-zero by 2035, to cut food waste in Waitrose by half by 2030, and to phase out the usage of fossil fuels in the transportation fleet by 2030. The interest rate will change based on whether the corporation meets its five-year goals.

The interest rate the company pays on the loan will be determined by whether it meets three environmental goals over the next five years, including decreasing carbon emissions, minimising food waste, and shifting away from fossil fuels.

These goals support the Partnership's current sustainability commitments, by 2035, carbon emissions will be nil. Food waste: Waitrose will reduce food waste by 50% by 2030, compared to a 2018 baseline. Transportation: by 2030, the company's transportation fleet will be free of fossil fuels.

Furthermore, the John Lewis Partnership recently became one of the first companies to sign on to the Science-Based Targets Initiative Business Ambition for 1.5°C as well as the UN Race to Zero initiative. "For the Partnership, this is a critical accord. To combat climate change, businesses must integrate their financial strategy with sustainability goals, according to Bérengère Michel, executive director of finance at the John Lewis Partnership.

"I am glad that, ahead of the COP26 meeting, the Partnership is honoring its sustainability pledges and mission by taking this critical action." "This loan facility further strengthens our excellent connections with our financial partners, who continue to back the Partnership and our long-term goals." This year, the Partnership will invest roughly £800 million to develop and grow its retail brands, as well as diversify into new areas including financial services and leased housing.

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29th October 2021, Mumbai:

Welspun India’s total income was Rs 2501.39 crores during the second quarter as compared to Rs 2227.22 crores for the previous quarter. Net profit was Rs 199.06 crores as against a net profit of Rs 217.53 crores for the previous quarter. EPS was Rs 2.01 for the second quarter as compared to Rs 2.17 for the previous quarter.

Total income was Rs 2501.39 crores during the second quarter as compared to Rs 1992.58 crores during the same quarter previous year. Net profit was Rs199.06 crores during the second quarter as against Rs 179.70 crores for the same quarter the previous year. Total income was Rs 4728.24 crores during the six month period as compared to Rs 3208.62 crores during the earlier six month period. Net profit was Rs 416.59 crores as against Rs 228.79 crores. Welspun is adding to its capacity in towels, sheets and rugs. The towel capacity will increase by seven per cent. Sheets will increase by 20 per cent and rugs by 80 per cent.

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02 November 2021, Mumbai:

Since the previous 10 years, the Indian textile and garment industry has faced numerous issues as a result of fluctuating raw cotton prices, which account for 60% of the yarn's cost.

This puts the downstream business, particularly the spinning industry, at risk since it raises yarn prices and makes them unpredictable in the very cost-competitive international market.

T Rajkumar, Chairman of the Confederation of Indian Textile Industry (CITI), has urged Prime Minister Narendra Modi to act to help stabilise cotton prices, which had risen to their highest level in the recent 11 cotton seasons.

He also requested the Cotton Price Stabilization Fund Scheme, which would include a 5% interest subsidy or a loan at the NABARD rate of interest, a reduction in margin money from 25% to 10%, and a rise in the cotton working capital limit from three to nine months.

Due to its inherent strength of abundant raw cotton at competitive rates and the presence of the whole cotton value chain, the Indian Cotton Textile Industry has always been at the forefront of affairs.

Cotton exports may exceed 100 lakh bales this year as a result of US sanctions on Xinjiang Chinese cotton, which accounts for 10% of global cotton production. The cotton season of 2021-2022 began with an opening stock of more than 100 lakh bales, with a projected production of 355 lakh bales.

Roughly 330 lakh bales will be used, with the textile industry importing about 10 lakh bales, leaving about 135 lakh bales for export and carry-over stock. Not only will there be a shortage of cotton on the worldwide market, but there will also be abnormal speculation in cotton prices as a result of this.

Raja M. Shanmugham, President of the Tirupur Exporters Association, also submitted a letter to the Prime Minister, requesting that Cotton Corporation of India Limited be directed to work for the benefit of cotton farmers and the textile sector.

“MNCs are playing a planned game in cotton trading against our textile industry by storing a large stock during the cotton yielding season by using their very low cost of overseas finance and provoking an increase in cotton price,” he said.

He went on to say that CCI should be directed to protect the interests of farmers first and foremost, as well as act as a facilitator or catalyst to accelerate the growth of the textile industry's value chain, and that, as a popular nation, India requires more jobs to accommodate its citizens and ensure household livelihood.

He went on to say that CCI needs to open its Supply Chain Center in response to demand in order to ensure that cotton is available to users quickly.

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01 November 2021, Mumbai:

The GST Council recently announced its decision to increase rates in the footwear and textile sector to correct the inverted duty structure. This will result in 12 percent GST on all footwear irrespective of its price; and barring cotton, all textile products including readymade garments will attract 12 percent GST from January 2022.

The decision will impact nearly 80 percent of final products to consumers, says a joint proposal by the Federation Of Hosiery Manufacturers’ Association of India (FOHMA), West Bengal Hosiery Association (WBHA), The Bengal Hosiery Manufacturers’ Association (BHMA), Chamber Of Textile Trade & Industry (COTTI), West Bengal Garments Manufacturers and Dealers Association (WBGMDA), Eastern India Garment Manufacturers & Exporters Federation (EIGMEF), Bangla Readymade Garments Manufacturers & Traders Welfare Association (BRGMTWA).

The Associations say as per Retailers Association of India monthly survey, domestic hosiery knitwear fabric, textile traders, and garment industry is struggling to revive post-pandemic as most stores continue to operate at 60 percent of pre-COVID levels. The industry is expected to achieve 2019-levels only by 2022-end. Hence, it should not be burdened with additional taxes.

Increase pressure on capital and employment requirements

Extending GST rates may also create greater stress on the already extended working capital requirements of the industry, especially in the MSME sector. It may compel banks to recall loans granted to MSMEs under the government-backed Emergency Credit Line Scheme. This may intensify the sector’s hardships, the proposal points out.

The pandemic has also resulted in a 20 percent drop in employment in the industry. Increasing GST may increase the burden and impact its economic viability. It may lead to 18 percent shrinkage in the industry’s workforce with a loss of approximately two million jobs, adds K B Agarwala, President, FOHMA & Managing Director of Rupa & Company.

Drop-in consumption levels

GST hike may also result in consumption levels dropping sharply, feels Ashok Todi, President WBHA & Chairman, Lux Industries. Also, consumers may shift to cheaper and lower-quality goods to save capital. Largely, cotton-based, hosiery knitwear fabric, textile traders, and the garment industry are already troubled by the severe economic, social and personal trauma caused by the pandemic.

GST hike will increase negativity amongst consumers and who will veer away from purchases, explains Sharad Bhatter, President, BHMA & Director, Asia Hosiery Mills.

It may also tempt fringe players to revert back to the informal sector. This may have a direct impact on the government’s other taxation plans, adds Alamgir Fakir, President, BRGMTWA & Director, Dynax Apparels.

Need for a uniform tax rate for textile value chain

Sanjay Kuman Jain, Former Chairman, CITI, Managing Director TT Ltd & Vice President, FOHMA, advises the GST Council to make the entire value chain subject to a 5 percent rate. This may result in higher revenue collection and also drive greater compliance and consumption.

Vijay Kariwala, Senior Vice President, WBGMDA, also urges the Council to factor in a cost increase to the government as well as the industry as a result of the GST hike. The Associations strongly urges the Central and state governments and GST Council to review their decision and maintain current GST rates.

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29th October 2021, Mumbai:

For the second quarter, Raymond’s consolidated net profit was Rs 56.15 crores. Total income was up twofold during the quarter under review as against the corresponding period of the previous fiscal year.

Total expenses were higher at Rs 1,488.64 crores as compared to Rs 942.35 crores. All of Raymond’s businesses performed well in the second quarter. The consumer-facing businesses witnessed a strong resurgence of demand and witnessed an uptick on a week-on-week basis during the quarter.

With the onset of the festive and wedding season, the consumer sentiment is upbeat primarily due to the large-scale vaccination drive across the country.

Revenue from textile was up over three folds. Revenue from the shirting segment zoomed to Rs 148.26 crores. Growth was driven due to improvement in both primary sales as well as secondary sales.

There was a gradual pickup in primary sales from August onwards catering to the upcoming festive demand and the wedding season. Growth in secondary sales was led by improvement in consumer sentiments post gradual unlocking, leading to increasing footfalls in retail outlets.

Revenue from the apparel segment was up over threefold. The garmenting segment was higher at Rs 211.92 crores. This was mainly due to the growth in bulk business from the US and UK retail markets along with the gradual opening up of the European market.

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