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Kumar Mangalam Birla, owner of diversified conglomerate Aditya Birla Group has increased his shareholding in Aditya Birla Nuvo by purchasing shares from minority investors including 3.86 per cent from Anil Ambani-owned Reliance Mutual Fund for Rs 775 crores. The merger will make Grasim one of India's largest diversified companies with a healthy mix of business with steady cash flows and long-term growth opportunities.
The plan includes listing the financial services company, with Grasim owning 57 per cent, the promoters 16.6 per cent and the rest by the public. With this, Aditya Birla Nuvo will merge with Grasim Industries. The stake purchases that boosted Birla's holdings to 62.77 per cent from 58.39 per cent, invited criticism from proxy advisory firms and local investors, who said it was against interests of minority shareholders. Reliance MF, the second-largest shareholder after Life Insurance Corporation of India, sold almost its entire stake.
Birla's unlisted private firms Turquoise Investments & Finance and IGH Holdings bought about 57 lakh shares between December 2016 and January 2017. Apart from Reliance Mutual Fund, the identity of the other sellers could not be ascertained. It has been also noted that the acquisition is part of its plan to increase shareholding in group companies under the creeping acquisition route allowed by the Securities & Exchange Board of India.
For companies in the textile chain that want to analyze, certify and optimize their production sites in terms of sustainable and socially responsible production conditions, it is Step by Oeko-Tex that is an independent certification system. The said certificate is awarded by the Oeko-Tex Community which is part of the Hohenstein Institute, one of the most respected research facilities in the German textile industry.
Step by Oeko-Tex was launched in 2014 that replaced Oeko-Tex Standard 1000. More popular than that is Standard 100 by Oeko-Tex, although this only tests the health safety of products and not the entire production chain like what Step by Oeko-Tex does.
The Oeko-Tex Step stands for Sustainable Textile Production and is used to certify production plants at all processing stages from fiber production to spinning and weaving/knitting, all the way up to refinement plants and manufacturers. The Step by Oeko-Tex certification divides the topic of sustainability into six different modules: chemicals and their use, environmental performance, environmental management, social responsibility, quality management, and occupational health and safety.
Archroma, a global leader in color and specialty chemicals that pioneered custom color engineering in textile and fashion, recently sponsored a seminar with founder of Design Seeds, Jessica Colaluca, during this year’s PrintSource New York exhibition. The said exhibition that focused on the use of Color Anthropology and how recent global political events including the election of Donald Trump and the passing of Brexit may alter the already established fashion industry color palette for the upcoming season.
Colaluca avered that the US election of Donald Trump impacted the colors we are - and will be - wearing this upcoming season. While not in the literal sense of red, white and blue being patriotic, but the notion of Americana and how people want to relate to it was shaken. In many ways, the modern folk/hipster aesthetic was born in reaction to consumerism gone wild which made natural colors make sense the past three years. But with the volatility of politics, nationally and globally, it makes sense the aesthetic will evolve dramatically once again.
Allowing for a feeling of empowerment, optimism and selfexpression, Colaluca pointed to strong fashion trends like flannel shirts and red dad caps that have dominated the market such as Modern Folk and Americana start blurring political lines of very different people with distinctly different ethos.
As early as Q4 2016, color anthropologists could see a fallout coming on this trend aesthetic in the hipster and early adopter segments because the aesthetics cross over with people of very different political and cultural beliefs, therefore separating themselves from a belief system they don't share. To address the fast pace of these shifting color trends, Colaluca highly recommends that fashion designers and brands leverage tools like Archroma's Color Atlas system. “The Color Atlas has beautiful modern colors that are constantly relevant, maintained Colaluca.
The Apparel Export Promotion Council (AEPC) has said that the cap of Rs 50 crore should be removed under the Amended Technology Upgradation Fund Scheme (ATUFS) in the upcoming Union Budget 2017-18 in order to attract more investments in the textile industry. It has also suggested the government to avoid changing drawback benefits and procedures under the GST regime.
Ashok Rajani, Chairman, AEPC said that the industry has been benefitted by the Rs 6,000-crore special package for the garment industry announced in June 2016 which aims at facilitating new investment, exports and employment. He further said that the AEPC expects the budget to supplement it taking the introduction of GST also this year.
He also said that the companies that are scaling up should be given some sort of incentive and the condition of term loan component of 50 per cent should not be imposed since there is no interest subsidy for the loans being taken from the banks. Clubbing of license should also not be permitted under annual advance license for the enhanced Duty Drawback Scheme, he observed.
Talking about the apparel market, Rajani said that the global apparel markets have been stagnant since 2015. For India, the growth in 2015-16 was a nominal 0.2 per cent while in 2016-17 it is expected to be similarly modest. However, India's domestic market is growing, which is an opportunity for the apparel manufacturers.
Madhya Pradesh has emerged as a hub of textile industry of the country in the last one decade due to the industry-friendly policy of the State government. This is what Minister for Commerce, Industry, Employment, Mineral Resources and Overseas Indians Rajendra Shukla said recently. He said that the State has a bank of around one thousand acre in all the districts to establish industries.
A special policy is being brought soon to encourage garment industry in the State. The minister was addressing the 14th International and 72nd All India Textile Conference. More than 300 representative of textile industry are taking part in the conference at Bhopal.
Shukla mentioned that Madhya Pradesh is progressing rapidly. It has no more a bimaru State now and has come in the category of the developed State. He further mentioned that all the facilities are available in the State to establish industry. Electricity, water, transport and other facilities like good roads are available. Moreover, sufficient land is available.
Besides, Shukla said that the State Government is working with full steam and commitment in the leadership of the Chief Minister Shivraj Singh Chouhan for the development of the State and to maintain the status of developed State.
Shukla mentioned that factories of well-known groups like Vardhman, Trident, Nahar, SEL Group, Raymond and Grasim are functioning successfully in the State. An amount of around Rs 7 thousand crore has been invested in the textile sector and 40,000 persons have got employment in last 6 years.
Textile projects worth Rs 4,000 will be established in the State soon. He told that the biggest 750 megawatt solar power plant of the world is being established at Rewa. An amount of Rs 6,000 crore will be invested in this plant. White Tiger Safari has been made in Mukundpur of Rewa, he added.
US president Donald Trump’s thought of a possible 20 per cent tax on US imports from Mexico is raising eyebrows in Asia where exports to the US drive growth in many economies. Japanese officials are of the say that they hoped to hold talks on trade with US officials soon. Finance Minister Taro Aso said the Japanese side should thoroughly explain how Japanese companies have been contributing to American society, including creating jobs.
Trump's press secretary Sean Spicer said the 20 per cent tax was among several options to finance building a wall along the US southern border, but no decision has yet been taken. In the light of the event, Mexican President Enrique Pena Nieto has scrapped his scheduled trip to Washington next week over the issue. He has flatly rejected Trump's assertion that Mexico will pay for the wall on its border.
China's official Xinhua News Agency reported that Trump was considering the 20 per cent tariffs without any editorial comment. However, the report cited unnamed analysts saying Trump would have to withdraw the US from the North American Free Trade Agreement or Nafta, to be able to impose such a tax. Mr Trump has said he wants to renegotiate Nafta.
A steep tariff on exports from Mexico to the US may have a telling effect on manufacturers like Toyota Motor Corp, which like almost all other automakers builds small cars in Mexico to take advantage of its lower wages. Along with other Japanese automakers, Toyota employs thousands of people at factories in the US. It also is planning to build a plant in Mexico to make the popular Corolla sub compact.
If you have been thinking of revamping your wardrobe this Spring Summer, you ought to check upon your wallet. It is being said that the introduction of GST (Goods and Service Tax) in the ensuing budget may be instrumental in the rise of branded apparels.
If industry veterans are to be believed, there would be rise of between 3 to 4 per cent in the prices of readymade apparels and other finished textile products. As of now, textile industry pays tax between 8to 9 per cent. However introduction of GST may escalate this tax by almost 12 per cent. If not the government will start following the 18 per cent tax rate which will make the prices more dearer. According to industry experts, they are expecting a tax of 12 per cent GST. But the duties they would now be paying at the manufacturers’ end will be amply high.
CMAI’s 64th National Garment Fair (NGF) will be held on January 30 and 31 at Bombay Exhibition Centre, NSE Complex, Goregaon (E), Mumbai. Giving details, Rahul Mehta, President, CMAI say despite demonetization, the 64th NGF will see over 260 stalls showcasing over 300 brands under one umbrella. Nearly 12,000 retailers are expected to visit the Fair in two days. Besides spot registration, retailers and trade visitors can also register online on www.cmai.in. The exhibitors will showcase a wide range of men’s wear, women’s wear, kids’ wear, Ethnic wear, intimate wear, sportswear etc. showcasing their Spring-Summer 2017 collection.
CMAI is the lead implementing agencies under component II of the Integrated Skill Development Scheme (ISID) of the Ministry of Textiles, Govt of India to impart training to 35,000 trainees by March 31, this year. So far, CMAI has trained 32,145 trainees and placed 25,336 trainees in the industry as on January 27. CMAI has succeeded in persuading the Government of India to remove readymade garments, sold in loose form, from the Rules of Packaged Commodities Act. This huge step which will go a long way in increasing the ease of doing business in the apparel industry.
The total size of Indian apparel industry is estimated at Rs 2, 50,000 crores for the domestic market. Out of this, the organized market is worth Rs 74,250 crores (30 per cent) whereas the unorganized market is worth Rs 1,75,750 Crore (70 per cent). Mehta says the Indian domestic apparel industry’s size is expected to double within next seven years. In 2015-16, India’s garment export to the US was worth $16.80 billion and is expected to reach $20 billion during the current fiscal.
Dhaka renewed its request to the Trump administration to consider ‘Duty Free Quota Free’ (DFQF) access to the US market. The said was made by Bangladesh Ambassador to the United States, Mohammad Ziauddin during a meeting with US Republican Senator Roger Wicker in Washington.
Also present at the meeting were Lai, senior legislative assistant of the congressman and Toufique Hasan, Minister (Political) of the Embassy. The Ambassador requested the US government to consider DFQF access of all Least Developed Countries’ products to the US market. Senator Wicker who hails from Mississippi is also a member on the Commerce, Science and Transportation Committee of the U.S. Senate. He noted that there is a sense of deprivation among the rest of the LDCs (mostly Asian and Oceanic) that seek justice from the US. Currently, only 34 countries (all African LDCs) out of 48 LDCs are benefited from the US DFQF access.
The ambassador told the Senator if the US provides DFQF access to Bangladeshi products, it would help the country to be economically strong by exporting more products especially from the RMG sector where more than four million women are employed at present. Consequently, it would help empower the Bangladeshi women to change society by contributing to alleviation of poverty and curb the menace of extremism, he said. Referring to Prime Minister Sheikh Hasina’s ‘zero tolerance’ stance against all forms of extremism and terrorism in Bangladesh and beyond, Ziauddin said that Bangladesh had already established counter terrorism cooperation with the US, India and other neighbouring countries.
The sixth edition of Asia Apparel Expo will take place this February at Messe Berlin where just over 300 companies from Hong Kong, China, Bangladesh, India, Pakistan, Sri Lanka, Taiwan and Vietnam will be participating. The Expo, a specialised garment industry do is a professional sourcing marketplace for European companies to meet apparel manufacturers and suppliers from eight Asian countries.
Asia remains the world's number one destination for apparel manufacturing and Asia Apparel Expo connects these world-class Asian clothing manufacturers and fabric suppliers all providing low cost, high quality and stable product supply to European brands. It happens to be the largest tradeshow in Europe where clothing professionals have a chance to meet Asian factories that offer production of apparel products for men, women and children. It is also a place for fabrics and textiles and trimmings and accessories.
This year the expo will be supported by Export Promotion Bureau, Bangladesh, China Council for the Promotional of International Trade (CCPIT) Shanghai Pudong Sub-Council, China, China Council for the Promotional of International Trade (CCPIT) Jiangsu, China, China Council for the Promotional of International Trade (CCPIT) Zhejiang, China, Bureau of Commerce of Qingdao, China, ISEPC (The Indian Silk Export Promotion Council), India, FIEO (Federation of Indian Export Organisations) India. The Asian Apparel Sourcing expo will be held at Messe Berlin from February 14 to 16.
