29th September 2021, Mumbai:

SVP Global Ventures Ltd. is foraying into technical textiles, spending about Rs. 100 crore in a 4,375 MT per annum green-field facility for technical textiles at Jhalawar, with the goal of becoming a fully integrated and globally competitive textile producer (Rajasthan). In 12 to 15 months, the company plans to begin commercial production of protective uniforms and functional garments, as well as medical textile, mobiltech, hometech, anti-odor, and antibacterial knitted fabric for sports, medical, and cosmetic uses in apparel, and gradually expand into other products.

“The technical textiles industry is projected to be the next sunshine industry, and it is likely to gain much-needed impetus from production linked incentives announced by the Government recently,” said Chirag Pittie, Director of SVP Global, in a statement.

The Group opted to enter this area because of the industry's excellent prospects.” “Capex for the projected green-field facility for technical textile is estimated to be approximately Rs. 100 crore and would be paid from internal accruals,” said Major General OP Gulia, SM, VSM (Retired) CEO of the business.

We expect the forward integration to provide significant contributions to the Group's topline and profitability, given the Government's assistance and the industry's bright prospects. The technical textiles are expected to bring in around Rs. 175 crore per year.”

SVP Group, founded in 1898 by Shri Vallabh Pittie, specializes in the production of polyester, polyester, and cotton blends, and 100% cotton yarn at three state-of-the-art manufacturing facilities in Jhalawar (Rajasthan), Ramnad (Coimbatore), and Sohar (Rajasthan) (Oman). SVP Global is one of the top 2% of Indian manufacturers, with technology that is less than 5 years old and the industry's maximum production of 153-154 grams per spindle each shift.

IKEA and Zara are among the brands for which the firm has been certified as a supplier.

It's worth noting that the government recently established a program to encourage private investment in the labor-intensive textiles sector, which includes ten technical textile goods.

The government would provide incentives to man-made fibers worth about Rs. 7,000 crore and technological textiles worth around Rs. 4,000 crore under the production-linked incentive program.

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28th September 2021, Mumbai:

Around 40 textile and garment firms in Tamil Nadu are considering an initial public offering (IPO) to list their stock on the Indian stock exchanges.

The aggregate market capitalization of listed businesses in the Indian textile and apparel sector is just Rs. 2.2 lakh crore, whereas the market capitalization of Indian stock markets has surpassed Rs. 240 lakh crore. Simultaneously,

Indian capital markets are expanding at a quick rate, and the textile sector is attracting a lot of investor interest and attention, with values rising upwards.

Coimbatore-based Indian Texpreneurs Federation (ITF) undertook a study of 257 member firms with a total annual sales volume of Rs 36,000 crore.

Manufacturing units from all throughout the value chain took part, including spinning, semi-integrated, integrated, weaving, clothing, processing, and home textiles.

In this poll, 16 percent of firms stated they are interested in going public. Furthermore, 30% of the entrepreneurs stated that they are confident in doubling their existing sales in three years with a 25% CAGR, and 18% stated that they would double their current sales in four years with a 20% CAGR.

36% of the entrepreneurs stated that they will achieve their goal of tripling yarn sales in 5 years with a 15% CAGR. The study also revealed that the textile and apparel sector in Tamil Nadu is betting on development with a focus on value addition.

The ITF, the state's largest trade association, conducted the poll to better understand the textile and apparel sector's growth ambitions in light of the favorable trend in the export market in the post-Covid global economic climate.

According to Prabhu Dhamodharan, Convenor, ITF, Coimbatore, 76% of the polled companies expressed interest in doubling their present company location in 3 to 5 years with a new CAPEX cycle.

Within the textile manufacturing sub-segments, home textiles, weaving, and clothing are seeing stronger development. This tendency would aid the textile business in Tamil Nadu in developing more value-added products.

According to the poll, 58 percent of entrepreneurs highlighted the next generation's eagerness to take the firm forward.

“Plus China” One opportunity in the export market for Indian players, Union Government structural reforms, renewed and new thrust from the State Government to support the manufacturing sector, funding availability with lower interest rates, and new attention from international buyers towards Tamil Nadutextile eco-system due to its inherent strengths are the major reasons for such growth aspirations,” says Prabhu.

He added in a statement that organizations like the ITF need to build new platforms to promote new trends and dynamism with a collaborative approach to match the ambitions and views of the younger generation to encourage the less interesting segment to new economic prospects as well.

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28th September 2021, Mumbai:

The government has announced the Rs. 10,683 crore Production Linked Incentive (PLI) plan for textiles, which includes 10 technological textiles, 14 manmade fiber (MMF) items, and 40 MMF apparel.

The program divides items such as jackets, jerseys, trousers, overcoats, polyester fabric, and nylon furnishing textiles into two groups, each with various incentives depending on a minimum investment of Rs. 300 crore and Rs. 100 crore.

Only those firms that offer 60% value addition in integrated fiber/yarn to fabric, garment, and technical textiles, and 30% in the case of independent fabrics processing houses, will be selected for the incentive under the program, according to the Ministry of Textiles (MoT).

Safety airbags, shade netting, bulletproof jackets, surgical sutures, PPE for medical usage, and carbon fiber are examples of technical textiles.

The government has also included ‘Smart Textiles' to the list of items qualifying for the advantages, a new generation niche product that is a combination of various wearable materials integrated with electronics, implanted with active devices for medical, defense, and special purpose.

According to MoT, the description does not currently fit into any HSN Code. For this product, a valid 8-digit HSN Code must be established from scratch.

According to the announcement, the scheme's incentives would be accessible for five years, from FY26 to FY30, on incremental turnover produced between FY25 and FY29, with a budgetary investment of Rs. 10,683 crore.

However, if a firm meets its investment and performance objectives a year ahead of schedule, it will be eligible one year ahead of schedule from FY25 to FY29.

Anyone who is willing to invest a minimum of Rs. 300 crore in the plant, machinery, equipment, and civil works (excluding land and administrative building costs) to produce products from the notified lines is eligible to participate, but they must first form a separate company under the Companies Act, 2013, before investing under this scheme.

Both the requirements of minimum investment and a minimum turnover must be satisfied in order to get an incentive. After a two-year gestation period, firms investing Rs. 300 crore are anticipated to generate the requisite turnover of Rs. 600 crore, for which they would receive a 15% incentive.

In the following years, the incentive will be based on attaining a minimum extra incremental turnover of 25% above the previous year's turnover up to the year.

However, starting in the second year and continuing until the fifth year, the incentive will be decreased by 1% each year until it reaches a maximum of 11% in the fifth year.

According to the announcement, only sales made through traditional banking channels will be counted.

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28th September 2021, Mumbai:

South India's fabric exporters are afraid that the island nation's economic turmoil may result in payment delays from customers. Sri Lanka is a major exporter of Indian cotton fabric.

Due to pent-up demand, India exported cotton textiles worth the US $ 179.29 million, increasing 38.47 percent from the previous year.

The Sri Lankan rupee has lost more than 10% of its value versus the US dollar in recent days, raising worries among Indian textile and fabric exporters that payments may be delayed. This follows a decrease in shipments to Sri Lanka.

According to a story in The Economic Times, Siddhartha Rajagopal, ED, The Cotton Textiles Export Promotion Council (Texprocil), claimed that owing to pent-up demand, cotton fabric shipments to Sri Lanka are on the rise.

However, it began to decline in August and then came the economic crisis, which interrupted commerce. The economic crisis in Sri Lanka is anticipated to have a greater impact in the coming months.

However, Raja Shanmugam, President of the Tirupur Exporters Association, believes that the present turmoil in Sri Lanka may benefit India's clothing exports.

Sri Lanka, he added, is a rival of India in the clothing industry. Global clothing purchasers may look to India as a sourcing nation and make more orders now that the country is experiencing an economic crisis.

“In the previous year, we have seen Sri Lanka restrict non-essential imports such as automobiles and other things, but necessary exports have continued,” said Ajay Sahai, Director General, Federation of Indian Export Organizations.

We've requested the government for a line of credit to be granted to Sri Lanka since that the payments have become irregular.”

It's worth noting that the emergence of Covid-19 is partially to blame for Sri Lanka's economic difficulties. Furthermore, Rajapaksa's decision to restrict the use of fertilizers by the Sri Lankan government, which wants agriculture to become completely organic, may have exacerbated the situation.

According to Praveen Khandelwal, General Secretary of the Confederation of All India Traders (CAIT), traders are experiencing payment issues as a result of the Sri Lankan conflict. “Rs. 8,000 crore is blocked in Sri Lanka, and there is no indication when payments would resume,” he added.

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18th September 2021, Mumbai:

Piyush Goyal, the Union Textiles Minister (MoT), and Darshana Jardosh, the Union Textiles Minister for the state, recently paid a visit to the textile plant at GIDC Sachin in Surat.

Both ministers also met with the Southern Gujarat Chambers of Commerce and Industry for an interactive session (SGCCI). The government is striving to simplify the Amended Technology Upgradation Funds Scheme, according to Piyush Goyal (ATUFS).

“We need to curb wrongdoing, and that is the government's responsibility,” he added. We'll keep working to resolve the issues.”

He promised the city's businessmen that the partial denotification problem at Surat Textile Park will be handled as soon as possible by his government.

“I was astonished at how a proposal has been on hold for four months,” Piyush Goyal remarked, addressing a concern made regarding 6 lakh square meters of sewage treatment plant (STP). But, because it has come to my attention, we will investigate the situation by Wednesday and reach a conclusion.”

Surat, he said, is poised to benefit from the recently launched PLI plan for textiles because it is India's largest center for the Man-Made Fibre sector. The program will produce job possibilities as well as worldwide champions.

“Surat will be essential in expanding local output and achieving the sector's ambitious export targets,” he added.

Surat's textile sector, according to the Minister, is playing a critical role in bolstering the Indian economy and setting an example for the world market due to the technical progress of its textile units.

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28th September 2021, Mumbai:

Textiles to engineering conglomerate Raymond has announced a restructuring plan that involves consolidating the parent company with its fast-fashion business and merging the auto components and tools and hardware businesses into its engineering division.

The restructuring plan aims to monetize the brand’s assets, cut its debt and improve operational synergies. Raymond had a gross debt of Rs 2,470 crore as of March 31, according to Crisil Research. As part of the scheme, the tools and hardware and the auto components businesses will be merged into JK Files, a wholly-owned subsidiary.

The company’s demerger scheme has been withdrawn and the lifestyle business will be transferred to Raymond to streamline the group’s B2C businesses.

Raymond is a diversified group with majority business interests in textile and apparel sectors as well as a presence across diverse segments such as FMCG, realty, engineering, and prophylactics in national and international markets.

Having enjoyed the patronage of over a billion consumers, Raymond is reckoned for delivering world-class quality products to its consumers for the past nine decades.

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15th September 2021, Mumbai:

The new Production Linked Incentive (PLI) scheme will make India globally competitive and enable it to produce textiles at large scale besides improving their quality, says Piyush Goyal, Minister of Textiles, Commerce and Industry in an interaction with the Economic Times. Until now, India has largely focused on cotton-based textiles due to climatic conditions and history of cotton growth. However, the PLI scheme will help it focus on man-made fibers (MMFs) and technical textiles also. The scheme will encourage entreprenuers to set up factories with investments from Rs 100 crore to Rs 300 crore. These factories would generate a turnover in the range of Rs 200 crore to Rs 600 crore and help India capture the entire textile value chain, adds Goyal.

Scheme to make MMF production viable

To implement this scheme, Prime Minister Narender Modi has directed the petrochemical and petroleum ministry to set up backward linkages for the textile raw materials being produced in India. The scheme aims to make MMF and technical textiles production viable in India besides creating seven-and-a-half lakh jobs and expanding investments across the value chain, adds Goyal.

He believes, the Rs 10,863 crore incentives allotted for the scheme will help catalyze much larger investments. The ministry will focus on Tier III, IV towns and aspirational districts while selecting the beneficiaries of the scheme, he informs.

Creating an entire textile ecosystem

Elaborating on the other schemes introduced for the industry, Goyal says, the government has introduced a series of measures for the textile industry in India. The RoSCTL scheme has been extended till 2024. It also proposes to introduce the MITRA scheme to set up large-scale textile parks across the country. These parks will create an entire textile ecosystem including testing facilities, common effluent treatment plant, facilities to encourage manufacturing, skill development, nearby housing for the workmen, etc.

To be successful, the textile industry needs skilled laborers, says Goyal. The industry also needs labor laws facilitating large-scale employment, power and land at affordable prices, common testing and research and development facilities and common effluent treatment plants to meet international sustainability standards. The industry has collaborated with the shipping ministry and the railway ministry to address the issue of containers shortage in India. It is looking for ways to enable faster and easier movement of containers.

Promoting domestic container manufacturers

The shipping ministry is also promoting operations of domestic container manufacturers. Container Corporation of India (Concor) has given trial orders to some companies to manufacture containers in India. Goyal is confident that India will become self-reliant in container manufacturing in the next two or three years India. He informs, the Prime Minister has directed the shipping ministry to encourage more investments in the sector and expand its reach in the global market.

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