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Trade 29-11-2021

Amazon asks Competition Commission (CCI) to withdraw approval for $3.4-billion Future (FRL)-RIL deal approval

29 November 2021, Mumbai:

Amazon has asked India's antitrust regulator to revoke its approval for Future Group's $3.4 billion sales of retail assets to Reliance NSE 2.39 %, saying it was "illegally obtained", violating an order suspending the deal, a letter seen by Reuters shows.

The approval for the deal was a "nullity in the eyes of law" as an arbitrator's order was still in force, according to the letter sent by Amazon.com Inc to the Competition Commission (CCI) last week.

Mukesh Ambani: Love conquers all: When Mukesh Ambani proposed to Nita at a signal; Bhavish Aggarwal's broke coffee dates - The Economic Times

The battle between two of the world's richest men, Amazon founder Jeff Bezos and Reliance Industries Ltd (RIL) boss Mukesh Ambani marks a contest for preeminence in India’s booming, nearly trillion-dollar retail market.

ET (The news article has not been edited by DFU Publications staff)

Illegal acquisition of evidence and the violation of constitutional rights - iPleaders

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Daily News:

1. Flipkart, an Indian e-commerce company, collaborates with PUMA on the ‘1DER' line, which features batsman KL Rahul

2. Consumers will determine growth of sustainable fashion e-comm in India

3. Myntra to offer 1 mn styles from about 7,000 brands at the 'Big Fashion Festival'

4. Maharashtra government honors VIP as 'Best Innerwear Brand' for 2021-22

5. Nike strengthens retail presences with new store at DLF Mall of India,Noida

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Trade 29-11-2021

Amazon asks Competition Commission (CCI) to withdraw approval for $3.4-billion Future (FRL)-RIL deal approval

In response to rising yarn prices, the Indian garment and textile industries successfully organized a one-day shutdown and hunger strike

29 November 2021, Mumbai:

The clothing and textile industry's one-day shutdown and hunger strike over Tirupur's extraordinary rise was effective, as several garment firms shut down for the day and a considerable number of them fasted. The textile industry urged that the government take immediate action to limit yarn and cotton costs.

Across the area, over 3,000 garment and export units shuttered their doors. Local retailers and shopkeepers also closed their doors as a show of support. Several stores in Palladam Road, Mangalam Road, Kaderpet, and Avinashi Road remained closed.

Govts Not Helping MSMEs to Survive' | NewsClick

Around 117 textile industry stakeholders, including dyeing facilities, exporters, and trade unions, are said to have gone on strike to protest the Centre's failure to regulate yarn pricing. Muthurathinam, President of the Tirupur Exporters and Manufacturers Association, said the yarn price had risen from Rs. 210 per kg in January to Rs. 350 per kg today.

MSME units are unable to complete the orders that have been placed with them. An order from a clothing exporter took 90 days to ship. The exporter would lose money if there were price increases throughout the three-month term. The pricing was often changed.

Following the protest call, more than 80% of textile manufacturing and related businesses stayed closed, resulting in a production loss of Rs. 300 crore. In addition, the majority of the city's textile shops remained closed.

According to Raja Shanmugham, President of the Tiruppur Exporters Association (TEA), which backed the strike, the cost of dyes and chemicals had grown by 40% in the previous year, and corrugated box costs had climbed by 30% to 40%. Yarn costs have increased by 55% in the last year.

Raja Shanmugam | Manavalan's Scribbles

Exporters encounter a variety of challenges, according to K.E. Raghunathan, Convenor, Consortium of Indian Associations, including high freight costs, a lack of sufficient RODTEP programs, and delays in receiving input tax returns. To express their uneasiness in life, the hands that feed others have gone on hunger strike.

Reimagining India's Future; K.E. Raghunathan- Convener, Consortium of Indian Associations - YouTube

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Daily News:

1. Flipkart, an Indian e-commerce company, collaborates with PUMA on the ‘1DER' line, which features batsman KL Rahul

2. Consumers will determine growth of sustainable fashion e-comm in India

3. Myntra to offer 1 mn styles from about 7,000 brands at the 'Big Fashion Festival'

4. Maharashtra government honors VIP as 'Best Innerwear Brand' for 2021-22

5. Nike strengthens retail presences with new store at DLF Mall of India,Noida

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Trade 29-11-2021

In response to rising yarn prices, the Indian garment and textile industries successfully organized a one-day shutdown and hunger strike

The Retailers Association of India has urged the government to abandon its plans to raise the GST on clothes and textiles

26 November 2021, Mumbai:

The Retailers Association of India (RAI) has asked Union Finance Minister Nirmala Sitharaman to rethink the government's plan to raise the goods and services tax rates on garments and textiles by a large amount.

Following the government's declaration that it will raise GST rates on a number of clothing and textile categories from 5% to 12%, the RAI cautioned the government that such a move would be disastrous for the sector.

In a public statement, the RAI stated that a GST increase would compel shops to raise clothes costs, reducing consumer demand. The group also expressed concern that the measure might lead unorganized small firms to avoid paying GST entirely.

The RAI also urged the GST Council and state governments to reconsider the plan, claiming that many garment retailers are already struggling as a result of the present economic climate.

According to the Press Trust of India, "such a high hike in the GST rate will adversely affect 85 percent of the business while attempting to alleviate the difficulty experienced by not more than 15 percent of the industry."

As an alternative, the RAI proposed that the government impose a flat 5% GST charge over the whole textile and clothing value chain. The RAI claims that this will help the industry while also resolving the inverted duty structure problem.

Kumar Rajagopalan, CEO, Retailers Association of India: Retail Leadership Summit (RLS) 2019 - YouTube

"The impact of the hike in GST rates on textiles and clothing is not in anyone's interest," RAI CEO Kumar Rajagopalan remarked. "On the business side, it will add to an already-stressed sector's financial load, impede its recovery, and impair working capital requirements, particularly for MSME [micro, small, and medium enterprise] enterprises, which account for 90% of the industry."

Retailers Association of India (RAI)

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Trade 26-11-2021

The Retailers Association of India has urged the government to abandon its plans to raise the GST on clothes and textiles

Google's Global Fibre Impact Explorer (GFIE) tool, companies, and non-profit organization

24 November 2021, Mumbai:

Google has partnered with Stella McCartney, The Textile Exchange, and the World Wide Fund for Nature (WWF) on the Global Fibre Impact Explorer (GFIE) tool to assist the fashion sector to become more sustainable.

The tool is designed to assist companies in better understanding the environmental challenges associated with acquiring the raw materials they use, allowing them to make more environmentally conscious decisions.

Google collaborated with McCartney "to understand the industry's demands and to test the platform," and a select group of major retailers and brands, including Adidas, Allbirds, H&M Group, and VF Corporation, were also involved in the pre-release process.

Others are now being invited to express their interest in utilizing it.

The fashion industry, according to Google, is "one of the most significant contributors to the global climate and ecological crises," accounting for up to 8% of global greenhouse gas emissions, much of which happens at the raw materials stage of the supply chain. Brands, on the other hand, frequently have "little to no visibility" into the environmental effect of the products they use while sourcing them.

So it's been working for the past two years on creating a technology "that would provide firms the data they need to make more responsible sourcing decisions."

The initial version of the GFIE is based on Google Earth Engine and uses Google Cloud computing to evaluate the environmental risk of various fibers in connection to aspects including air pollution, biodiversity, climate and greenhouse gas emissions, forestry, and water consumption.

"Identify environmental concerns across more than 20 fiber types — including natural, cellulosic, and synthetic materials," according to the program. It will also provide brands advice for risk-reduction measures that are targeted and locally relevant.

The collaboration with McCartney noticed her team incorporating the tool within their ongoing sustainability initiatives. "We were able to identify cotton sources in Turkey that were suffering higher water and climate threats," according to Google.

This underscores the need of investing in local agricultural communities that prioritize regenerative strategies like water management and soil regeneration."

With the initial development phase completed, Google and WWF are now transferring GFIE to Textile Exchange, a worldwide non-profit organization dedicated to speeding the use of environmentally friendly fibers throughout the global industry.

Textile Exchange will continue to improve the tool, bring on more businesses, and strive toward an industry-wide solution.

New evidence hints a redesigned Google logo is coming after all - The Verge

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Trade 25-11-2021

Google's Global Fibre Impact Explorer (GFIE) tool, companies, and non-profit organization

The Indian Minister of Textiles received incorrect data!

26 November 2021, Mumbai:

In a recent meeting, Minister of Textiles Piyush Goyal received false and distorted data from the Confederation of Indian Textile Industry (CITI) and spinning groups. Dr. Rikhab C. Jain, the founder of TT Limited and a textile industry veteran, wrote a letter to trade bodies such as the Apparel Export Promotion Council, Clothing Manufacturers Associations of India, All Garment Associations & Hosiery Associations, Prominent Garment Manufacturers, and Hosiery & Powerloom Manufacturers in this regard, claiming as much.

"In the textile sector, there are competing interests. "No doubt," he said in his letter, "but none of the stakeholders should supply any misleading information, erroneous data, distorted and twisted statistics concerning the impact of space rocketing cotton prices, which have risen by 70% or more in the previous few weeks." According to CITI, "cotton accounts for 55 to 60% of yarn cost, and yarn cost accounts for 20% to 25% of the garment and made-up cost." This statement is false, incorrect, and sufficient to establish a negative mentality in any decision-maker.

According to Dr. Rikhab C. Jain, yarn costs for garment, made-up, and hosiery goods would range from 40% to 65 percent, depending on whether the product is in the lower, middle, or upper category. Obviously, the cost of packaging and value addition is higher for top items, but their yarn cost is not less than 40%. In the case of fabric, yarn costs might go as high as 80% to 85%.

For example, the value addition for white cotton knitted fabric is just about 15% to 20%. In the case of made-ups, the notion that 20% to 25% is merely yarn cost is likewise completely incorrect. It would generally match other textiles solely because made-ups do not require any tailoring.

"Spinning Mill Associations and CITI produced materials incorrectly to give the impression that cotton prices and cotton yarn prices had not risen in lockstep. Cotton yarn costs have increased by 65 percent, while cotton prices have increased by almost 80 percent in the post-Covid period.

It is apparent that yarn costs have risen far more than cotton prices have justified. Even if the cost of cotton is assumed to be 60% of the cost of yarn, yarn prices should not have climbed by more than 50% to 55%. (assuming 10 percent inflation in other costs).

"Let a new representation to the Government of India and the Spinners Associations be made." "In truth, CITI is just a new version of the Indian Cotton Mills Federation (ICMF)," according to the letter.

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TOP 5:

1. Flipkart, an Indian e-commerce company, collaborates with PUMA on the ‘1DER' line, which features batsman KL Rahul

2. Consumers will determine growth of sustainable fashion e-comm in India

3. Myntra to offer 1 mn styles from about 7,000 brands at the 'Big Fashion Festival'

4. Maharashtra government honors VIP as 'Best Innerwear Brand' for 2021-22

5. Nike strengthens retail presences with new store at DLF Mall of India,Noida

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Trade 26-11-2021

The Indian Minister of Textiles received incorrect data!

Loyal Textile Mills (India) becomes 'Zero-Debt Company'

25 November 2021, Mumbai:

Consolidated net profit grew to ₹31.24 crores for the Sept quarter Loyal Textile Mills (LTM) has become a zero-debt company after repaying its loan outstanding of more than ₹50 crores, supported by a better operating environment.

“We had a term loan outstanding of ₹52.98 crores as of March 31, availed from banks and financial institutions. We have repaid entire term loans this month, including payment of ₹27.59 crores in advance. Now, our company has reached the status of zero debt company (term loan),” the company said in a communique to the stock exchanges.

“Loyal Textile Mills had consistently reduced the term loan obligations over the last few years with no major debt-funded capital expenditure. As a result, the overall gearing improved, however, it stood moderate at 1.52x as on March 31, 2021, against 1.81x as on March 31, 2020,” said a recent report by CARE Ratings.

LOYAL TEXTILE MILLS LTD Photos and Images, Office Photos, Campus Images | Photo Gallery - MouthShut.com

Net profit

The company reported a significant increase in its consolidated net profit at ₹31.24 crores for the quarter ended September 30, compared with the consolidated net profit of ₹6.18 crore in the year-ago quarter on the back of strong growth in revenues. Consolidated revenues grew 71 per cent at ₹460.90 crore( ₹269.48 crore).

The improved growth prospects for the textile industry post the first wave of the pandemic, with the increased demand for cotton textiles, are driving growth for companies like LTM.

“In view of the improved operating environment, LTM has been reporting healthy profits in recent quarters and is expected to remain so in the near terms. The profits have been used towards debt reduction, with prepayment of debt as well,” said the report.

Loyal Textile Mills (India) becomes 'Zero-Debt Company'

Oldest mill in South

LTM is one of the oldest mills in South India having more than seven decades of track record with an established presence both in international and domestic markets. The company has four textile mills, one process house, and a garment division.

It generates more than two-thirds of sales from export markets, which include the US, Europe, West Asia, and Asia. In 2020-21, exports accounted for 72 percent of its revenue from operations of ₹1,122 crores.

Business Line (The news article has not been edited by DFU Publications staff)

Zero Debt Review 2021 - Rateweb

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DAILY NEWS:

1. Flipkart, an Indian e-commerce company, collaborates with PUMA on the ‘1DER' line, which features batsman KL Rahul

2. Consumers will determine growth of sustainable fashion e-comm in India

3. Myntra to offer 1 mn styles from about 7,000 brands at the 'Big Fashion Festival'

4. Maharashtra government honors VIP as 'Best Innerwear Brand' for 2021-22

5. Nike strengthens retail presences with new store at DLF Mall of India,Noida

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Trade 25-11-2021

Loyal Textile Mills (India) becomes 'Zero-Debt Company'

Chamber of Industrial and Commercial Undertakings (CICU), Ludhiana: Textile industry seeks rollback of GST rates hike

24 November 2021, Mumbai:

With the Union government recently increasing goods and services tax (GST) on garments and textiles from 5% to 12%, the Chamber of Industrial and Commercial Undertakings (CICU) has written to Union finance minister Nirmala Sitharaman seeking a rollback of the decision.

The letter stated that the textile and garment industry is already struggling for survival amid the pandemic, and this move by the government will push it into a deeper crisis. The industrialists rued that this will impact business at large as prices of woven and knitted fabrics, knitted garments, textile garments, etc will increase.

Also, it will adversely impact export, as the sector will not be able to compete at the international market and lead to rampant tax evasion, stated industrialists.

CICU president Upkar Singh Ahuja said the industry had also opposed an increase in the GST rate, but the government notified it, ignoring their needs and demand.

“We have written to Sitharaman to roll back the order, failing which the industry, especially the small units, will collapse,” Ahuja said. The industrialists stated that rising prices of raw materials have already been taking a toll on the business.

Knitwear and Textile Club president Vinod Thapar said, “Rather than helping the industry by bringing down the prices, the government has added to our woes.

Wholesale Hosiery Market in Ludhiana | Dal Bazaar, Chawal Bazaar Ludhiana - YouTube

The industry will not be able to survive for long under these circumstances and this hike will further encourage tax evasion. The tax rate should be reduced to 5% to save the industry.”

BAP leaders postpone protest outside PM’s residence

Earlier, a group of industrialists under the banner of Bhartiya Aarthik Party (BAP), had announced a protest outside the house of Prime Minister (PM) Narendra Modi in Delhi on November 25.

The national president of the party, Tarun Jain Bawa, stated that the agitation has been postponed for now as officials from the PM office have invited them for discussing the problems on Wednesday. HT

(The news article has not been edited by DFU Publications staff)

Untitled

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TOP 5:

1. Flipkart, an Indian e-commerce company, collaborates with PUMA on the ‘1DER' line, which features batsman KL Rahul

2. Consumers will determine growth of sustainable fashion e-comm in India

3. Myntra to offer 1 mn styles from about 7,000 brands at the 'Big Fashion Festival'

4. Maharashtra government honors VIP as 'Best Innerwear Brand' for 2021-22

5. Nike strengthens retail presences with new store at DLF Mall of India, Noida

Return to homepage

Trade 24-11-2021

Chamber of Industrial and Commercial Undertakings (CICU), Ludhiana: Textile industry seeks rollback of GST rates hike

‘Completely unjustifiable’ GST rate increase on Textiles & Apparel (T&A) indicates the Govt has a job cut out

26 November 2021, Mumbai:

For years, the manmade fibre (MMF) manufacturers in the country made representation to the government to fix an anomaly in GST which had a severe impact on their business.

Hanging by a Thread - BusinessToday

The Finance Ministry finally on November 18 notified a 7% hike in GST (from current 5% to 12%) applicable on manmade fibre (MMF) MMF yarn, MMF fabrics, a move that would address a sore point for the sector.

However, the government went a step further and said even finished products such as apparel, textiles, and footwear will be taxed at 12% from earlier 5%, effective January 2022. This has now caused considerable pain for the entire sector.

The Central Board of Indirect Taxes and Customs (CBIC) stated that the GST rate on any worth of clothes will be 12% beginning next year. Currently, a 5% tax on sales up to Rs 1000 per piece is charged.

Further, the GST rates on some synthetic fibres and yarn have been reduced from 18 to 12%, putting rates in line with the rest of the textiles sector.

ET (The article has not been edited by DFU Publications staff)

Sarah Perry Quote: “Of course it seems completely contradictory and wholly unjustifiable, but then the best minds can hold two opposing thou...”

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TOP 5:

1. Flipkart, an Indian e-commerce company, collaborates with PUMA on the ‘1DER' line, which features batsman KL Rahul

2. Consumers will determine growth of sustainable fashion e-comm in India

3. Myntra to offer 1 mn styles from about 7,000 brands at the 'Big Fashion Festival'

4. Maharashtra government honors VIP as 'Best Innerwear Brand' for 2021-22

5. Nike strengthens retail presences with new store at DLF Mall of India,Noida

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Trade 26-11-2021

‘Completely unjustifiable’ GST rate increase on Textiles & Apparel (T&A) indicates the Govt has a job cut out

Textiles Committee Secretary Shri Ajit Chavan inaugurates Techtextil India in Mumbai

25 November 2021, Mumbai:

Bringing the technical textile industry together after a two-year span, Techtextil India 2021 opened in Mumbai today and was inaugurated by key industry and government figures.

The trade fair aims to showcase the future potential of technical textiles backed by a series of knowledge sessions, live product demos and B2B networking opportunities.

Reconnecting the technical textile value chain for the very first-time post-lockdown, Techtexil India 2021 has kicked off in Mumbai. The aim of show organiser Messe Frankfurt India through the new edition is to promote industry unification and support business recovery across the value chain of technical textiles.

The high-profile event held at Bombay Exhibition Centre was inaugurated by:

Shri Ajit Chavan, Secretary - Textiles Committee, Ministry of Textiles, Government of India
Mrs Marja Einig, Deputy Consul General, German Consulate General Mumbai
Mr Amit Agarwal, Chairman, Indian Technical Textiles Association (ITTA)
Mr Avinash Misar, Vice chairman, Indian Technical Textiles Association (ITTA)
Mr Anup Rakshit, Executive Director, Indian Technical Textiles Association (ITTA)
Mr Robin Kapoor, CEO & MD, PARK Nonwoven
Mr Pramod Khosla, MD & Chairman, Khosla Profil Pvt Ltd
Mr Raj Manek, Executive Director and Board Member, Messe Frankfurt Asia Holdings Ltd

Addressing the industry at the inauguration, Shri Ajit Chavan, Secretary - Textiles Committee, Ministry of Textiles, Government of India shared: “The government of India’s policies are completely catered towards the growth of technical textiles. We have a target of INR 2 Lakh Crore in the country and the Indian industry is geared up to achieve that market potential.

As a country, we have a great lot of scope in agrotech and medtech, while we have always been at the forefront of packtech, geotech and other high-technology areas.”

Commenting on the policies, he added: “The PLI scheme will be a major fillip in manufacturing of technical textiles and the textile parks will provide integrated linkages with the technical textile value chain.”

Elaborating on Germany’s participation at the fair, Chavan also said: “Techtexil India is a great platform for bringing the technical textile stakeholders together. Despite the pandemic related difficulties, I am happy to see Germany participating in this important fair and I am sure that they will find good business and collaborations between Indian entrepreneurs and German industries.”

Techtextil India

Weavetech Engineers, Lenzing Fibers India Pvt Ltd, Khosla Profile Pvt Ltd, Lucky International, Meera Industries Ltd, Park Non-Woven Pvt Ltd, Sarex Chemicals, Alok Masterbatches Pvt Ltd, SICAM and Suntech Geotextile Pvt Ltd are some of the leading Indian companies participating in the 2021 fair.

One of the key highlights of Techtextil India is the special showcase of German technology at an exclusive German pavilion, featuring some of the top technical textile manufacturers from the country, such as Autefa Solution Germany GmbH, DILO Systems GmbH, Emtec Electronic GmbH, Georg Sahm GmbH & Co, Karl Mayer Verwaltungsgesellschaft mbH, Merz Maschinenfabrik GmbH and Oerlikon Barmag Zweigniederlassung der Oerlikon Textile GmbH & Co.

Being a part of the first post-pandemic edition, Mrs Marja Einig, Deputy Consul General, German Consulate General Mumbai, shared: “Messe Frankfurt India has made it happen!

This is the first time after the pandemic that we are hosting a German pavilion in India. And there is a fantastic display of specialised machinery for various technical textile products which ranges from alternative energy, to masks, to textiles, to sports shoes. It is incredible what we can achieve with a well-equipped production line and that is one of the focal points of Techtextil India and for the German companies participating here.”

On the domestic front, the nodal agency for investment promotion and facilitation for the Government of Tamil Nadu – Guidance are showcasing their prowess in technical textiles along with some of the major industry players from the state, including Cyber Textiles India Pvt Ltd, Jayashree Spun Bond, Lenzing Ag India, Liester Technologies, Loyal Textile Mills Ltd, Milltex Engineers Pvt Ltd, Superfil Products Pvt Ltd, Uster Technologies (India) Pvt Ltd.

Referring to the potential of the domestic technical textile industry, Mr Amit Agarwal, Chairman of, Indian Technical Textiles Association (ITTA) said: “We are at an inflection point where our consumption, manufacturing, and export potential is huge.

The growth of technical textiles will happen as the per-capita income increases and therefore, all the application areas of technical textiles in India have an equal potential to grow. I personally foresee that 10 to 15 percent of compounded annual growth year-on-year is possible in India.”

Day two is set to host the next chapter of Techtextil India Digital Symposium allowing attendees to gain insight into major growth prospects and emerging opportunities in India.

Aimed at ‘Transforming India’s Technical Textile Landscape through Innovations and Investments’, the virtual platform will feature a series of sessions on Foreign Direct Investment Opportunities and Policies, Investment opportunities in Tamil Nadu, Investments & Opportunities in South Carolina for Technical Textiles sector, PLI & New Investment Opportunities, Sustainable Technical Textiles and Global sustainable approach for Textiles with Antimicrobial Performance.

Moreover, attendees and buyers who are unable to attend the physical show are able to witness product demonstrations virtually and engage with exhibitors via the virtual platform.

Showcasing the potential of technical textiles through the new hybrid edition, the remaining two days of the fair will set a tone for strong business restart by delivering crucial learning, sourcing, and business opportunities.

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TOP 5:

1. Flipkart, an Indian e-commerce company, collaborates with PUMA on the ‘1DER' line, which features batsman KL Rahul

2. Consumers will determine growth of sustainable fashion e-comm in India

3. Myntra to offer 1 mn styles from about 7,000 brands at the 'Big Fashion Festival'

4. Maharashtra government honors VIP as 'Best Innerwear Brand' for 2021-22

5. Nike strengthens retail presences with new store at DLF Mall of India,Noida

Return to homepage

Trade 25-11-2021

Textiles Committee Secretary Shri Ajit Chavan inaugurates Techtextil India in Mumbai

IKEA to build India's 1st shopping centre in Gurugram (Delhi, NCR)

24 November 2021, Mumbai:

IKEA's malls business, one of the world's biggest, said on Tuesday it had bought a plot in Gurugram next to New Delhi for a shopping center that will be its first to open in India.

Ingka Centres, which has 47 malls, that itself calls "meeting places", anchored by IKEA (IKEA.UL) stores across Europe, Russia, and China and plans to enter North America and India, said the estimated investment for the project was around €400 million ($450 million) and that construction would start in early 2022.

Managing Director Cindy Andersen told Reuters the company expected to complete the centre, which will besides an IKEA store also house office space, in late 2025.

Ingka Centres in February announced it had bought a plot in Noida on the outskirts of Delhi and planned to invest nearly 55 billion rupees in its first shopping centre in India, but said on Tuesday the one in Gurugram would open before that. REUTERS

(The news article has not been edited by DFU Publications staff)

Gurgaon, India, 2019. Aerial shot of Rapid metro tracks in urban areas of New Delhi NCR, Gurugram, Noida. A very useful addition to existing DMRC rail Stock Photo - Alamy

Dear Reader, we at DFU Publications are committed to providing the latest news updates on trade development and insights, to keep our readers informed. Stay tuned. Subscribe to our newsletter.

TOP 5:

1. Flipkart, an Indian e-commerce company, collaborates with PUMA on the ‘1DER' line, which features batsman KL Rahul

2. Consumers will determine growth of sustainable fashion e-comm in India

3. Myntra to offer 1 mn styles from about 7,000 brands at the 'Big Fashion Festival'

4. Maharashtra government honors VIP as 'Best Innerwear Brand' for 2021-22

5. Nike strengthens retail presences with new store at DLF Mall of India, Noida

Return to homepage

Trade 24-11-2021

IKEA to build India's 1st shopping centre in Gurugram (Delhi, NCR)

Amazon India charges Rs 7,000 cr diverted from Future Retail (FRL)

26 November 2021, Mumbai:

Amazon Inc., which is trying to block India’s richest man from taking over a struggling retail chain, fired a fresh salvo by alleging that money from the local firm was possibly diverted to other companies.

Future Retail Ltd. transferred Rs 7,000 crore ($939 million) in the year ended March 2020 as a capital advance to a company controlled by its founder Kishore Biyani and as payment for goods and services purchased from the related firm, Amazon said in a letter seen by Bloomberg News. Future Retail also created unusual rental security deposits and made advances to suppliers worth a total of Rs 4,300 crore the same year, even as business slumped and it was shutting stores, Amazon said.

The transactions were part of the public disclosures made by the company as part of standard governance practices, Future Retail’s representative said by email, adding that “there is nothing new that is being brought to the notice, except for false speculations being created out of selective excerpts.” A representative for Amazon India declined to comment.

“Significant amounts may have been diverted from Future Retail,” Amazon said. By unwinding at least part of these transactions, Future Retail can “immediately partially repay the outstanding debt owed to banks and creditors to ensure business continuity and survival,” it added.

Business Standard (The news article has not been edited by DFU Publications)

Diversion of Funds and Siphoning of Funds - Bankers' Club

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Trade 26-11-2021

Amazon India charges Rs 7,000 cr diverted from Future Retail (FRL)

GST rates hike on textile will seriously impact industry: Textile Merchants Association, T.N.

25 November 2021, Mumbai:

The Tamil Nadu Textile Merchants Association has said that the increase in GST on textiles and garments from 5% to 12% from January 1, next year would impact the industry badly and render crores of people dependent on this industry jobless.

5 pc tax set to destroy fabric of textile biz'- The New Indian Express
In a representation to Prime Minister Narendra Modi, Union finance minister Nirmala Sithraman, Union minister for textiles and others, secretary of the association, Ashraf Tayub said that the recommendations of the 45th GST council to increase the GST on textiles could have a colossal negative impact and affect the total textile and garment industry and lead to the closure of lakhs of factories and shops.

This in turn could cause unemployment to crores of people dependent on this industry.

TOI (The news article has not been edited by DFU Publications staff)

Textiles traders in Surat demand MSME status

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TOP 5:

1. Flipkart, an Indian e-commerce company, collaborates with PUMA on the ‘1DER' line, which features batsman KL Rahul

2. Consumers will determine growth of sustainable fashion e-comm in India

3. Myntra to offer 1 mn styles from about 7,000 brands at the 'Big Fashion Festival'

4. Maharashtra government honors VIP as 'Best Innerwear Brand' for 2021-22

5. Nike strengthens retail presences with new store at DLF Mall of India, Noida

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Trade 25-11-2021

GST rates hike on textile will seriously impact industry: Textile Merchants Association, T.N.

'Uniform GST rates 12% set to reduce compliance burden' for 'MMF Textiles' sector

23 November 2021, Mumbai:

Removal of inverted tax structure on MMF Textiles value chain and uniformity of rates brings relief to textiles sector, says the government.

The government has notified uniform Goods & Services tax (GST) rate at 12% on MMF, MMF yarn, MMF fabrics and apparel, which has addressed the inverted tax structure in the MMF textile value chain, said government on Monday.

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The changed rates will come into effect from January 1, 2022. This will help the MMF segment grow and emerge as a big job provider in the country, said Ministry of Textiles.

"The Textiles & Apparel (T&A) industry was having long pending (first under sales tax then, under VAT and finally under GST regime) demand for removal of inverted tax structure on manmade fibre (MMF) value chain.

The GST on MMF, MMF Yarn and MMF Fabrics were 18%, 12% and 5% respectively. The taxation of inputs at higher rates than finished products created build up of credits and cascading costs. It further led to accumulation of taxes at various stages of MMF value chain and blockage of crucial working capital for the industry.

"Though there is a provision in GST law to claim the unutilised Input Tax Credit (ITC) as a refund, but there were other complications and resulted more compliance burden. The inverted tax structure caused effective increase in rate of taxation of the sector.

What is the Input Tax Credit (ITC) under GST?

The world textiles trade has been moving towards MMF but India was not able to take advantage of the trend as its MMF segment was throttled by inverted tax regime," the ministry further said.

This 12% uniform GST rate is likely to contribute positively to the growth of the sector in the following ways:

i) The uniform rate of 12% for entire value chain of MMF textiles sector will be benefiting and save lot of working capital. It will reduce the compliance burden of the industry players. This is a welcome step by the Government with no inversion.

ii) The uniformity of GST rates will be helpful to resolve the ITC residues that accumulated due to the inverted tax structure earlier.

iii) The uniformity in the GST rates shall 12% GST on job work related to dying and printing services will benefit the industry to absorb and recover unutilised ITC.

iv) The significant portion of MMF products (output) is expected to be exported, it will lend a better scope for encashing the untilised ITC. Also since tax on input will get refunded, on output (export) which will be zero rated, it would not add to cost and make exports competitive.

v) Uniform 12% GST will help the industry having huge portion of piled up opening ITC by enabling them to encash the same progressively

"Differential rates for garment creates problem in compliance of tax regime.

MMF garment cannot be identified easily and cannot be taxed differently, hence there is need for uniform rate.

Uniform rate makes it simple and since there is so much high potential of value addition in garment segment that the increase in rate is likely to be absorbed in value addition. It will provide clarity to the industry and settle, once and for all, the issues caused by inverted tax structure," the ministry said.

Business Standard

(The news article has not been edited by DFU Publications staff)

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Trade 23-11-2021