24 March 2023, Mumbai 

FabIndia, the ethnic wear and lifestyle retailer, along with its private equity investors, is planning to raise funds through a share sale.

The company is looking to raise between Rs 1,100 crore and Rs 1,200 crore at a valuation of Rs 11,000 crore to Rs 12,000 crore. The funds will be used to repay debt and for working capital needs. FabIndia had earlier filed its draft prospectus for an IPO but due to market volatility, the IPO plans have been pushed back.

The company is working to raise funds from new investors in a secondary sale of shares. Shareholders including PremjiInvest and Lighthouse Funds are expected to sell shares in the upcoming fundraising round. FabIndia has reported strong interest from investors, particularly those focused on sustainability, as the company uses eco-friendly manufacturing practices.

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31 January 2023, Mumbai

The Indian apparel/garment industry is hoping the budget offers some relief.

The industry is seeing rough times due to costlier raw materials and global economic challenges. Costlier cotton is the key pain point for the Indian garment industry. On the one hand, the cost of production of garments has increased.

Also, cheaper garments are being imported into India from China, Bangladesh, and other countries. Since higher cotton prices are the main cause of concern for the entire textile industry, removing the import duty is expected to ease cotton prices.

Higher cotton prices increase garment production costs, so exporters are not in a position to offer competitive prices. Cotton imports under Advance Licence offer duty-free raw materials for exporters but they are not entitled to incentives under RoDTEP.

The industry wants GST rates for ready-to-wear items to be reduced from the current 12.5 per cent to 5 per cent since high GST rates discourage consumers from buying. Also, taxation on Employees Stock Options (ESOP) should be based on actual gains, not hypothetical benefits.

Since India’s garment export industry, more particularly micro, small, and medium units, have been affected badly due to the international market situation caused by the Russian-Ukraine war, a moratorium of a minimum of six months for the existing loan payments has been suggested. Special funding has been called for to develop labor-supportive infrastructure in clusters where labor-intensive industries like clothing/apparel/garments are concentrated.

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20 March 2023, Mumbai 

The Indian government has given the green light to establish the 'PM Mitra' (Prime Minister Mega Integrated Textile Region and Apparel) Park in seven states across the country.

The move paves the way for the creation of a massive textile park spanning 1000 acres, costing Rs 1200 crores, in the state capital of Lucknow.

The project will bring together all aspects of the textile industry under one roof, providing a much-needed boost to artisans, weavers, and handicraftsmen in Uttar Pradesh. The government anticipates that the park will attract investments worth Rs 10,000 crores, generating employment opportunities and driving growth in the region.

The textile Park is expected to play a crucial role in the development of the textile industry in Uttar Pradesh, with the government focusing on creating a favourable ecosystem for the sector. With state-of-the-art infrastructure and world-class facilities, the park will be a game-changer for the industry, enabling it to compete with global players.

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22 February 2023, Mumbai 

The ensemble will hold a shopping fair for women in Pune, from March 4 to 5, 2023.

The ensemble is a luxury fashion and lifestyle exhibition curated for the elite. The business-to-customer event will showcase over 50 premium brands from across India and will focus on brands in the luxury and bridge-to-luxury segments of the market.

The event will feature product categories including women’s wear, fashion accessories, jewellery, handbags, gift items, and handicrafts. The event will feature an array of bridal wear for the spring wedding season with clothing designed for brides and wedding guests alike. The shopping fair will also shine a spotlight on Pune-based designers and give them a platform from which to connect with local shoppers.

The bridal fashion of India is still ethnic in look though modern in cut and style. Both ace designers and budding ones redefine it through their avant-garde creativity. Most of their signature ensembles reflect ethnic charm with a raw appeal.

Augmented urbanization, fashion upgrades, and enlarged disposable income are driving the growth of the bridal wear market. Also technological advances, the entry of local players, and augmented luxury weddings are some of the factors that have accelerated the bridal wear market growth.

The idea of sumptuous weddings has also contributed to the rising popularity of weddings at destinations.

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13 March 2023, Mumbai

The Indian government is expected to implement a new e-commerce policy that would end inventory-based sales on platforms such as Amazon and Flipkart, while also prohibiting the offering of special incentives for using a particular payment service.

The policy, which has been in development for several months, aims to ensure that e-marketplaces, both foreign and domestic, do not resort to using inventory-based models to sell their goods. The policy comes at a time when the government is piloting the rollout of Open Network for Digital Commerce (ONDC), which aims to democratize online sales for consumers and small sellers.

While e-commerce giants like Amazon and Flipkart have protested against the proposed policy, the government has taken a cautious approach to ensure there is no disruption. The consumer affairs department has already addressed some issues facing consumers, such as product reviews and addressing grievances for the sale of defective products.

According to official sources, the policy seeks to ensure that e-marketplaces operate like malls rather than stores, with checks in place to prevent preferred status from being granted to certain entities when it comes to payments. This move is expected to affect companies like Amazon, which offer benefits to consumers using Amazon Pay. However, there will be carve-outs for service sector companies in the new regime.

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20 February 2023, Mumbai

Birla Cellulose will introduce the weaver community to fibers like viscose, modal, and excel, which are relatively price stable. The aim is to create awareness about natural, sustainable and durable alternatives and preserve a precious art like handloom weaving. Till date Birla Cellulose has trained 1500 artists, across seven states and supplied 5.5 lakhs of yarn annually. Given that the cost of silk yarn is often exorbitant and out of reach for the mass market, Birla Cellulose has blended silk fabrics which preserve the luxurious feel of pure silk while being competitively priced. Modal-made products have a lustrous shine, brilliant color, and luxuriously soft feel reminiscent of silk. Birla Cellulose’s brand, Liva, nurtures the Indian textile value chain contributing to a more sustainably produced fiber that also resolves the breakage issue these weavers face with traditional threads. Further, with its robust supply chain supported by regional partners, Birla Cellulose ensures timely and consistent delivery of quality yarn that meets all of their customers’ needs, helping boost weavers’ production capacity. With its versatile R&D center continuously engaged in developing new yarns and fabrics with regional partners, Birla Cellulose has helped commercial bulk fabric manufacturers develop new bases for printing with the latest, in-demand yarns or by changing the weaving patterns.

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29 January 2023, Mumbai

Around 25 per cent to 30 per cent of all products sold in India are spurious. So says Crisil.

Among all the sectors, the apparel sector tops the list with 31 per cent of counterfeit products followed by fast-moving consumer goods with 28 per cent and the automotive sector with 25 per cent. Other major sectors included pharmaceuticals (20 per cent), consumer durables (17 per cent), and agrochemicals (16 per cent).

Around 27 per cent of India consumers, says Crisil, are unaware that the products are counterfeit at the time of purchase, but 31 per cent willingly purchase spurious products. The report covered New Delhi, Agra, Jalandhar, Mumbai, Ahmedabad, Jaipur, Indore, Kolkata, Patna, Chennai, Bangalore, and Hyderabad. And counterfeiting is not limited to luxury items. Even common items, from cumin seeds to cooking oil and from baby care items to medicines, are increasingly reported as counterfeit.

The spurious goods market is rising and is heavily bleeding the industry and consumers. There is a huge market in India for fake copies of luxury brands selling everything from clothes, shoes, watches, accessories, phones, and other electronics. Fake labels or cheap imitations may seem a tempting deal but wearing such a garment can be dangerous to health.

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 08 March 2023, Mumbai 

Indian retail market is set to reach a staggering USD 2 trillion by 2032, making it one of the fastest growing in the world.

Speaking at a FICCI industry event, Subramaniam V, Reliance Retail Director during FICCI event as reported by ET, projected that the retail market is estimated to be worth USD 844 billion in 2022, with unorganised retail accounting for 87 per cent of the share.

Despite the market's impressive growth, Subramaniam stressed the need for a more inclusive and sustainable operating environment that would promote growth for small players in the unorganised sector. Subramaniam highlighted the unorganised retail segment's fragmented nature and lack of modern-day infrastructure and technology due to smaller volumes and financial resources. To address this, he suggested building a sourcing ecosystem that supports small producers and manufacturers to modernise their operations and produce high-quality products. Additionally, investments are needed to develop India's supply chain infrastructure by linking all major sourcing locations through scalable warehousing and logistics ecosystems to reduce sourcing time and enable faster movement of goods.

The retail sector is on the cusp of experiencing innovation in both physical and e-commerce through the use of cutting-edge technologies such as artificial intelligence and machine learning, the sector is likely to see many new cases aided by 5G in the retail space.

Subramaniam also highlighted the challenges faced by the retail industry, including licensing. Currently, 10 to 70 licenses are required to open one retail store, and he suggested policy intervention in this space. Subramaniam proposed a "single license" for a business entity by the state government instead of multiple licenses.

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17 February 2023, Mumbai

Ananya and Aryaman are on the board of Aditya Birla.

They are the children of Kumar Mangalam Birla and it is a sign the reins of the storied group which traces its antecedents back to 1857 will stay in the hands of a Birla scion.

In 1977 Aditya Vikram Birla became the company’s chairman and in 1995 following his sudden and tragic death Kumar Mangalam Birla, then just 28, replaced him as chairman. Tutored perhaps by the tragic death of his father when he was just 51, Kumar Birla clearly wants his own children to be put through the paces in preparation of future roles.

Traditionally, women in the group haven’t got directly involved with the family business. But that was in the past. Ananya has already proved her metier as an entrepreneur and, as the eldest, may well be put in charge of a business once she has had sufficient exposure.

What the group needs now from the two inheritors is the energy and dynamism of youth, along with a more native understanding of the changing marketplace. They are expected to bring insights into new-age businesses and consumer behavior into the group. As of now the Birla conglomerate relies heavily on textiles, cement and aluminum, which in turn has kept its market cap much lower than that of its peers.

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