Friday, 18 August 2017 07:23

Gap Introduces Fall 2017 Assortment

Range features product innovations in adult clothing, and Gap x Disney Snow White and the Seven Dwarfs Collection for kids

 

This Fall, Gap is focused on “Feel Good Jeans” - classic American styling with a comfortable hand feel, flattering fit and cozy fabrics to help transition through the season.

 

 

The Fall 2017 range features an array of colors and prints, including reds, blues, greens and vintage florals. With denim at the heart of the season’s key offering, the highlights are the Sculpt and Shape fit for women. The new Super Slimming Denim features innovative fabric that creates a slimmer appearance for longer, leaner legs. To transition from warm to cooler weather, leggings come in a palate of the season’s colors and prints. Pretty woven tops with ruffles, lightweight denim skirts, vintage floral dresses, and softspun knits are key must-haves for casual layering and easy styling.

 

The Gap range for men is focused on the Performance Collection, which fuses the fit and style of everyday favourites with performance technology, like stretch and water repellency, ensuring that they not only look good, but are perfect in any condition. This product innovation is also featured in Gap’s Stretch Denim and Athletic Fit jeans. Vintage wash stretch khaki comes to life in shades of blue, softspun denims, stretch woven shirts and puffer jackets, ensuring your style is never compromised. Apart from the Performance Collection, the Rugged Motocross range introduces Indestructible Denim. This is one tough jacket that can take a beating. At 100% more tear resistant and 400% stronger than regular denim, this product is up for any challenge, but is still comfortable enough for everyday adventures.

                                                                               

The GapKids and babyGap collections showcase easy going clothing, which include ‘wear now bottoms’ that concentrate on leggings for girls and chinos for boys, along with Super Denim in warm fall colors. The collection focuses on Disney and Marvel themes which are incorporated throughout the line. This season, Gap x Disney Snow White and the Seven Dwarfs will be the main attraction, bringing optimism and friendship to the little wonders of every day.

 

Since opening its doors in 1969, Gap has been known for offering consumers cool American designs for modern wardrobes. Customers worldwide have looked to the iconic international brand for on-trend, casual clothing and accessories that express their personal sense of style. 

 

 

The Fall 2017 collection is available in all Gap stores throughout India and on gap.nnnow.com and amazon.in/gap.

 

About Arvind Lifestyle Brands Limited

Arvind Lifestyle Brands Limited is a subsidiary of Arvind Ltd which is India’s largest integrated textile player and is one of the oldest and most respected groups in the Textile Business in India.  Arvind is also one of the largest producers of denim fabrics and is supplier to a large number of fashion brands in the world.  Arvind has been a pioneer in bringing international brands to India and first brought ARROW to India in the year 1993. Arvind has licensing relationships with many international brands including GAP, TCP, Gant, Nautica, Aeropostale, Arrow, Izod, US Polo Association, Elle, Ed Hardy, Hanes, Cherokee and Geoffrey Beene.Arvind also has a portfolio of 12 of its own brands. Arvind has recently launched stores of marquee retailers Gap, The Children’s Place and beauty giant Sephora. Arvind has a JV with PVH Corp. for the Tommy Hilfiger and Calvin Klein businesses in India.  It also runs the value retail chain, Megamart.

 

About Gap

Gap is one of the world's most iconic apparel and accessories brands and the authority on American casual style.  Founded in San Francisco in 1969, Gap’s collections are designed to build the foundation of modern wardrobes – all things denim, classic white shirts, khakis and must-have trends.  Beginning with the first international store in London in 1987, Gap continues to connect with customers online and across the brand’s more than 1,700 company-operated and franchise retail locations around the world. Gap includes Women's and Men's apparel and accessories, GapKids, babyGap, GapMaternity, GapBody and GapFit collections.  The brand also serves value-conscious customers with exclusively-designed collections for Gap Outlet and Gap Factory Stores.  Gap is the namesake brand for leading global specialty retailer, Gap Inc. (NYSE: GPS) which includes Gap, BananaRepublic, Old Navy, Athleta, Intermix and Weddington Way. For more information, please visit www.gapinc.com.

 

 

Thursday, 17 August 2017 12:13

Cotton Report of India In August

India New Season Arrivals as on 01/08/2017:

State wise Arrivals

Just Agri

(Lakh Bales)2016-17

 

Just Agri

(Lakh Bales)2015-16

 

 

Punjab

09.00

05.50

Haryana

21.00

14.75

Rajasthan

18.00

15.40

Gujarat

82.60

76.75

Maharashtra

96.40

67.60

M. P.

20.82

18.30

A.P.

18.70

21.82

Telegana

49.72

57.62

Karnataka

16.18

17.22

Orissa

03.00

03.00

Other

02.40

06.50

Total

337.82

304.46

 

 

 

 

 

 

 

 

 

 

 

 

Cotton Sowing Report as on 28/07/2017

State wise Arrivals

Central Agri Ministry (Lakh hact.)

 

2017-18

2016-17

Punjab

03.820

04.000

Haryana

06.560

06.000

Rajasthan

06.150

06.000

Gujarat

25.840

20.380

Maharashtra

40.120

36.270

M. P.

05.730

05.270

A.P.

03.400

02.850

Telengana

16.800

11.220

Karnataka

03.850

03.620

Tamilnadu

00.054

00.033

Other

01.716

01.430

Total

114.040

97.073

 

 

 

 

 

 

 

 

 

 

GUJARAT: The State Agri ministry report showed that on 17th July Cotton Sowing in Gujarat had increased by 39% to 24,46,800 Hectors ( 17,60,700 hectors same time last year). Last 3 year average was 27,25,800 hectors. IMD reports showed Jun 1-Jul 17 rainfall as294.6 mm, 19% above normal.

 

In the last week of July, torrential rain and floods in Gujarat has hurt sowing and has resulted in damage to some of the cotton crop where sowing had been completed. Around 25% of land sown with cotton is feared to be affected. Banaskantha, Patan, Surendranagar, Rajkot, Morbi, Amreli and parts of Sabarkantha have witnessed heavy rains and flooding. North Gujarat was the worst affected. The actual damage would be clear only once the water recedes, but in several areas, entire fields have been washed away and will not be worth sowing again, as the top soil has been fully washed away. Cotton being a long duration crop and seeds being costly, most farmers will not again take a further risk with cotton re-sowing. According to Govt. officials, the affected crops are cotton, groundnut, sesame and guar.

 

RAJASTHAN/M.P.: Some cotton areas of Rajasthan and Madhya Pradesh are also adversely affected to heavy rains and floods.

 

MAHARASHTRA: While Khandesh and Marathwada zones have received adequate rainfall, parts of Vidarbha still require more rains to compensate for the deficit of June and July.

 

KARNATAKA: The medium and long staple cotton growing area of Raichur and Bellary have received medium rainfall which may barely sustain the cotton crop. But extra long staple(DCH-32) areas of Hubli to Chitradurga and Bailhongal have received very scanty rainfall and there is fear of drought-like situation. Karnataka badly requires a good round of rainfall.

 

PUNJAB: Very heavy rains and water-logging in June end and July beginning have caused extensive damage to the cotton crop in 8,125 acres of 20 villages in Mansa (Punjab)compelling the state agriculture department to issue an advisory to the affected farmers  asking them to uproot cotton and cultivate basmati rice.There has been 100% damage in 6,000 acres while 50-75% damage has been reported in another 2,125 acres of the land under cotton cultivation. Cotton has been sown in over 3.82 lakh hectares in Punjab, and in Mansa alone, the area under cotton cultivation is 86,000 hectares.

Pest Attacks:

While both sowing and monsoon have been good in North Indian states of Punjab and Haryana, there are reports of white fly attacks in some parts of Fazilka, Bathinda, Muktsar Mansa and Sirsa. Both these states have suffered severely due to white fly attacks in 2015-16 resulting in drop in cotton area in 2016-17.The farmers had shifted back to cotton this year following handsome prices and directives from state Governments on how to control the disease.

 

Pink ballworm disease has been identified in parts of Maharashtra like Khandesh and Akot. It was observed in Gujarat last year and had caused significant damage to yield and quality in affected areas.

 

Both these attacks are at the nascent stage but can be very damaging if not rectified immediately.

 

Domestic Market Summary:

Gujarat S6 price chart 16th to 31st July2017

 

 

Goods and Services Tax (GST) came into force on 1st July 2017.Since then, the textile industry has not been able to come to terms with the fast-changing situation.

 

1)     Heavy rains in many centres of India (parts of Gujarat, M.P., and Rajasthan), restricted the movement of goods like cotton, yarn and fabric.

2)     The cotton sellers are not very keen to off load quality cotton stocked in ware houses. As a result, prices of good quality varieties ruled stronger.

3)     Strike and non-compliance to GST in major weaving centres like Surat, Ahmedabad, Bhiwandi, Varanasi, Kolkatta, etc has resulted in fall in demand of yarn. The situation was bad since April but it has worsened post GST as the yarn prices have fallen by Rs 15 to Rs 25 per kg in many counts.

4)     Mills with lower cash reserves/lower cotton stocks/ high yarn unsold stocks/ high interest burden have started facing cash losses.

 

All of the above may compel some of the mills to cut down on production if the current situation does not improve. Prospects for the new season 2017-18 seem good as of now, but the last quarter of season 2016-17 is going to be very challenging for the mills as the physical cotton stocks in India are estimated to be as low as 2 million bales.

 

 

Reports:

ICAC:

Cotton Prices Uncertain in 2017/18

The Secretariat forecasts that the A Index in 2017/18 will range between 54 cts/lb and 87 cts/lb with a midpoint of 69 cts/lb. The midpoint would be 13 cts/lb lower than in 2016/17. This follows the large increase of 12 cts/lb from 2015/16 to 2016/17, which suggests that such a drop is not unreasonable. However, the season-average A Index in 2016/17 ended up being much higher than the Secretariat initially forecast, and market fundamentals do not explain why this occurred. Given what happened in 2016/17, it is difficult to say whether the current forecast for 2017/18 will hold up well over the season.

 

In 2017/18, world cotton production is projected to increase by 8% to 24.9 million tons due entirely to an 8% expansion in world cotton area to 31.7 million hectares, which is below the 20-year average of 32.7 million hectares. The world average yield is forecast at 785 kg/ha. India is expected to remain the world’s largest producer in 2017/18 with output increasing by 6% to 6.1 million tons. After falling by 6% in 2016/17, China’s production is projected to rebound by 7% to 5.2 million tons. Production in the United States is expected to rise by 10% to 4.1 million tons as high prices, sufficient soil moisture in dryland areas and beneficial weather during planting encouraged farmers to expand cotton area by 18% to 4.5 million hectares. After two seasons of contraction, better expected returns for cotton encouraged farmers to expand cotton area in Pakistan by 9% to 2.7 million hectares. Assuming the average yield rises by 8% to 717 kg/ha, Pakistan’s production is projected to increase by 17% to 2 million tons, which is similar to its 15- year average. Cotton production in Brazil is forecast to increase by 5% to 1.6 million tons as high returns in 2016/17, resulting partially from a 17% increase in the average yield, are likely to encourage farmers to expand cotton area.

 

World cotton consumption in 2017/18 is forecast to rise by 2% to 25 million tons. A modest 1% increase is projected for China, the world’s largest cotton consumer, with its mill use reaching 8.1 million tons in 2017/18. After declining by 3% in 2016/17, consumption in India is forecast to increase by 2% to 5.3 million tons in 2017/18. Pakistan’s mill use is expected to rise by 4% to 2.2 million tons, which follows a 13%

decrease in mill use in 2015/16 and stagnation in 2016/17. Consumption in Bangladesh is projected to rise by 5% to 1.5 million tons due to strong demand domestically and internationally, and Turkey’s mill use is expected to remain stable at 1.5 million tons.

 

World cotton trade is projected to decline by 1% to 7.8 million tons. While the United Sates is expected to remain the world’s largest exporter, its exports are nevertheless forecast to decrease by 8% to 2.9 million tons. India’s exports are forecast to rise by 2% to 930,000 tons, and Australia’s exports are projected to increase by 8% to 760,000 tons. Bangladesh, Vietnam and China are expected to remain the world’s three largest importers. Bangladesh’s imports are projected to increase by 7% to 1.5 million tons, Vietnam’s by 5% to 1.3 million tons, and China by 4% to 1.1 million tons.

World ending stocks are projected to decrease by 1% to 18.8 million tons in 2017/18, with increases outside of China offset by decreases in China’s stocks. China’s stocks are expected to decline by 16% to 8.9 million tons. Ending stocks outside of China are forecast to grow by 19% to 9.8 million tons.

WORLD COTTON SUPPLY AND DISTRIBUTION

 

2015/16

2016/17

2017/18

 

2015/16

2016/17

2017/18

Million Tons

Changes from previous month Million Tons

Production

21.48

23.03

24.89

 

0.18

0.11

0.32

Consumption

24.18

24.47

25.00

 

-0.10

0.15

0.27

Imports

7.57

7.88

7.80

 

0.02

-0.05

-0.04

Exports

7.55

7.88

7.80

 

0.00

-0.05

-0.04

Ending Stocks

20.33

18.90

18.80

 

1.66

1.61

1.65

Cotlook A

Index

70

83

69*

 

                 

* The price projection for 2017/18 is based on the ending stocks to mill use ratio in the world-less-China in 2015/16 (estimate), 2016/17 (projection) and 2017/18 (projection); on the ratio of Chinese net imports to world imports in 2016/17 (projection) and 2017/18 (projection); and on the price projection of 2016/17. The price projection is the mid-point of the 95% confidence interval: 54 cts/lb to 87 cts/lb.

Expert Views:

Dr. O.A. Cleveland, Mississippi State University: Fundamental and Technical

First fundamentals are important. In fact, it is the fundamentals factors that determine the price season to season and in between. Fundamentals determine price, period. However, during times of market lapses such as “dead fundamental news,” technicals take over and rule the day.

Thus, technical indicators become keys on the road map that traders use for that trip. Sometimes a detour may not make logical sense and at other times it may seem prices might be going the wrong way, but technicals spot these diversions and forks in the road.

Thus, and my fundamental friends cringe with I say this,technicals are the Leading Indicators of Fundamentals. In my personal trading—which I no longer do—most every time I went against the technicals, I was proven wrong.

The market will look for the very low 70’s in August, but will likely move lower into harvest as U.S. crop does hold the 18.6-19.3 million bales range. A smaller crop would support prices at a higher level .

 

Excerpts from Reinhart report dt 20.7.17:

Physical demand is subdued (but not dead) at current levels and it appears as – short-term – a level below 66.00 is necessary to bring stronger demand back. At the same time, price targets from various origins do not seem to be near current NYF levels. The result is the relatively quiet and consolidative market action which we witnessed during the past 4 weeks. Of course such picture cannot prevail for too long and either side will have to adjust their target levels at some point.     

 

Excerpts of Plexus Report:

Speculators have forced the market lower by selling around 9 million bales net over the last two months and they can’t keep up this kind of selling pressure. While most of this spec selling was long liquidation, there have also been new shorts established, which could provide the fuel for short covering rallies.

The trade has been a net buyer over the last two months and given the depleted inventories and the uncertainty regarding crops, we don’t see merchants or growers as aggressive sellers at this point. The market is going to trade in a range between 66-72 cents in the foreseeable future.  

 

Shri I.J.Dhuria (Director (Materials),Vardhman Spinning Mills Ltd.):

The crop situation in North India is nothing less than extraordinary.Similar reports are received form Maharashtra and Telangana. The damage in Gujarat due to floods is restricted to a very limited cotton sowing area.Current physical stocks are a concern for spinning mills but the new season looks to be very promising.

 

Shri Sanjay Jain (MD, TT Ltd):

Spinning mills all over India are in a very difficult situation. Cotton prices refuse to go down while demand in yarn has fallen drastically. Post GST, synthetic yarn will be cheaper by 8-10%, imported fabric will be cheaper by 12.5% and garment imports from Bangladesh are expected to increase which will adversely affect the Indian Textile industry.

 

 

 

Surat :

Post GST, in two fortnights, the prices of polyester synthetic yarn have reached at a new height. The POY prices

rose by 7% and yarn manufacturers have increased various deniers prices from Rs 5 to Rs 10 per kilogram in the

first sale of August. The powerloom weavers of the city are worried about the hike in yarn prices. Sources said,

weavers are already disturbed by 5 per cent GST on job work, 18 per cent GST on yarn and now on the other

hand yarn spinners are continously increasing yarn prices.


Industry sources said, there is no rational behind increasing the yarn prices, when the companies are well aware of

the fact that there is no such movement in the market. The small weavers, who are operating 12-24 powerloom

machines are hugely affected by the tax on job work. Now, the increased yarn prices are further cause of worry for

thousands of small-time weavers. During last month, before GST, yarn manufacturers has increased the prices of

crimp, Roto and FDY deniers based yarn upto Rs. 3/kg. Now, in August first sale, they have further increased

yarn prices upto Rs.10/kg. This will adversely affect the industry and the small weavers will not be able to

survive.  


---------------------------------------------

Implement GST Tariff Act to avoid litigation : Experts demand in GST Awareness Programme

Surat :

The central goverment should bring GST Tariff Act to avoid unwanted litigation in new tax regime. There are lots

of questions and confusions on tax rate, input tax credit, reverse charge mechanism, deemed credit and many more

in the newly implemented GST law. Lack of proper guidelines under GST system, may result in litigation. In a

''GST Awareness Programme'', organised by Surat branch of Western India Regional Council of Institute of

Charterd Accounts of India and Rotary Club, experts has demanded the GST tariff law. The tariff Rules and

Regulation under GST regime will ease the trade and simplify the tax structure. Chartered accountants Mukund

Chauhan, Hardik Shah and Avinash Poddar has address the audience about GST on Textile, Diamond-Jewellery

and Real Estate sector. They briefed the Anti-profiteering clause under GST and answered all the questions asked

by the people. Surat CA branch Chairman Abhishek Mittal said that the branch will organise GST account

training programme and GST software demonstartion in next week.

--------------------------------------------

Refund tax credit and remove 5% GST on Jobwork : Surat weavers urged to PM

The small weavers of the city are demanding removal of GST on fabrics jobwork. More than 35 textile Powerloom weaving associations of the city has sent thousands of letters to Prime Minister Narenda Modi and have urged for

relief in new tax law. They have put forth demand for refund of accumulated tax credit and removing GST of 5

per cent on weaving jobwork.


The yarn attracts 18% GST and any jobwork done on yarn also attracts 5% GST. There will be huge loss in terms

of input tax credit, which has no provision for refund under the GST law. The weavers doing jobwork will be

finished. The master weavers are not giving jobwork to small scale weavers after the announcement of GST rate.


The Southern Gujarat Chamber of Commerce and Industry (SGCCI) have submitted a representation to the

Finance Minister and demands tax relief on synthetic yarn. The industry association said, govt. should consider

12% GST on synthetic yarn instead of 18%. The 18% GST rate on synthetic yarn will badly effect the growth and

exports. It has also demended imposition of import duty on Chinese fabrics to protect the small and medium

enterprises in Surat. They have also appealed the govt. to provide credit of tax paid on imported machinery under

IGST.

Textile traders eyes on festival season

Surat :

The textile traders of Surat are now focusing on Durgapuja, Diwali and marriage season sale. As the demand for  finished fabrics likely is rise, the wholesale businessmans are now increasing their inventories. Speciallly, printed and value added fabrics are in high demand ahead of festival season.

Earlier in July, more than 70,000 traders have started indefinite strike against the imposition of 5% GST on textiles. Thousands of textile merchants had shut their shops for two weeks to protest the new tax structure. The entire industries incurred business losses to the tune of over 5000 crore during the two weeks long strike. The traders in Surat have called off their 15 days long strike following the Centre's assurance to look into their demand. In GST council meeting, finally, when centre denied for GST rollback on textile, traders of Surat unanimously decided to restart their businesses and also keep the fight on for simplification of GST rules.

After holding protests for long against the imposition of the GST, a large number of textile traders have started GST registration process. Over 80 per cent textile traders have shifted to GST. The purchase of finished fabrics for coming festival and marriage season has started and traders are receiving good orders from across the country.

 

 

Thursday, 17 August 2017 12:09

Woven Fabric Exports Tad Down in May 2017

Woven fabric exports were down 4 per cent both in terms of shipment and value and 11 per cent in May 2017. Shipments aggregated 361 million sq meters during the month valued at US$268 million or INR1,700 crore. Total domestic production in all sectors was at 5,335 million sqmotres during May, implying exports accounting for about 7 per cent for the month. Unit value realization averaged US$0.74 per sqmetre in May 2017, the same as in May 2016 but down Rs 2 in Rupee terms at INR 47.30 per sq. metre.

This May 141 countries imported woven fabrics from India, with Bangladesh being the largest importer, followed by UAE and Sri Lanka. The thee together accounted for 35 per cent of total woven fabrics during the month. In May 2017, 11 countries did not import any fabric from India as they did last year. However, they were replaced by 18 countries which imported fabric worth US$4.6 million this May.

Afghanistan, Hungary, Suriname, Lithuania, Malta, Denmark, Austria, Maldives, Nepal and Estonia were the 10 fastest growing markets for woven fabrics, and accounted for 3 per cent of total value exported in May.

Cotton Fabrics Dominates

Woven fabrics made of 100% cotton accounted for 42 per cent of all fabrics exported, worth US$111 million (INR710 crore) with volumes at 134 million sqmetres. The average unit price realization was at US$0.83 a kg, about a cent more than a year ago.

Cotton fabrics were followed by fabrics made of filament yarns and blended spun yarnsin May, comprising 108 million sqmetres and 68 million sqmetres, respectively. Among 100% man-made fabric export, polyester fabrics shipment was at 4 million sqmetres worth US$ 3 million.

Denim Exports on the Rise

Plain fabrics accounted for 66 per cent of all kinds of woven fabrics exported in May 2017, but were down 4 per cent on year on year comparison. Shipment totaled 287 million sq meters values US$176 million. Bangladesh, United Arab Emirates and USA were the top markets for plain fabrics. Denim was the second largest woven fabric exported in May (US$ 27 million), posting an increase of 9 per cent year on year. They were mainly imported by Bangladesh, Lesotho, Egypt, Colombia, South Korea and Turkey. Denim exports to these markets were worth more than US$20 million. Shirting/suiting and sarees were the other top fabrics exported from India in May this year.

Heavy Weight Fabric More in Demand

About 65 per cent of all woven fabrics exported were of light weight (<136 GSM) worth US$174 million and medium weight (>136 < 271 GSM) valued at US$57 million (21 per cent). They were mainly exported to Bangladesh, United Arab Emirates and Sri Lanka. Heavy weight fabrics valued at US$37 million were exported largely to Bangladesh, USA and Lesotho. While light and medium weight fabrics export declined year on year, heavy weight exports increased 10 per cent, while the same to Lesotho were exponentially high.

 

All Fabric Exports by Major Markets

 

'000 Sq. mtrs

Rs crore

Mln US$

% Share in total May 17

 

May-16

May-17

May-16

May-17

May-16

May-17

Vol

Val

Bangladesh

 44,271

 53,949

270.88

325.18

40.96

50.98

14.96

19.06

United Arab Emirates

 64,314

 31,274

307.30

156.05

46.45

24.47

8.67

9.15

Sri Lanka

 23,128

 22,598

127.31

117.91

19.24

18.49

6.27

6.91

USA

 24,979

 23,761

74.10

69.11

11.20

10.84

6.59

4.05

Iran

 7,838

 15,275

34.17

67.08

5.17

10.52

4.24

3.93

Sudan

 6,860

 7,945

49.03

52.57

7.41

8.24

2.20

3.08

Afghanistan

 23

 12,964

0.18

40.94

0.03

6.42

3.59

2.40

Pakistan

 8,558

 15,797

30.44

39.34

4.60

6.17

4.38

2.31

Vietnam

 3,191

 4,383

33.01

35.36

4.99

5.54

1.22

2.07

South Korea

 11,783

 7,965

42.38

34.87

6.40

5.47

2.21

2.04

 

 

All Fabric Exports by Type

 

'000 Sq. mtrs

Rs crore

Mln US$

Rs/Sq.mtr

US$/Sq.mtr

May-16

May-17

May-16

May-17

May-16

May-17

May-16

May-17

May-16

May-17

Plain fabric

 295,225

 286,925

 1,208.8

 1,120.8

 182.7

 175.8

 41

 39

 0.62

 0.61

Denim

 15,916

 17,097

 165.1

 173.4

 25.0

 27.2

 104

 101

 1.57

 1.59

Shirting

 21,780

 22,567

 146.8

 154.2

 22.2

 24.2

 67

 68

 1.02

 1.07

Saree

 10,124

 9,451

 93.1

 89.6

 14.1

 14.0

 92

 95

 1.39

 1.49

Suitings

 13,225

 11,514

 94.4

 76.8

 14.3

 12.0

 71

 67

 1.08

 1.05

Voil

 4,014

 2,592

 35.3

 20.8

 5.3

 3.3

 88

 80

 1.33

 1.26

Twill fabric

 4,904

 2,444

 35.6

 17.5

 5.4

 2.7

 73

 72

 1.10

 1.12

Lungi

 1,331

 1,515

 11.2

 12.6

 1.7

 2.0

 84

 83

 1.27

 1.31

Dhoti

 1,536

 1,519

 8.3

 8.8

 1.3

 1.4

 54

 58

 0.82

 0.90

Women suit

 350

 544

 2.8

 5.8

 0.4

 0.9

 79

 107

 1.19

 1.68

 

 

Fabric Exports by Fibre Use

 

'000 Sq. mtrs

Rs crore

Mln US$

Rs/kg

US$/kg

May-16

May-17

May-16

May-17

May-16

May-17

May-16

May-17

May-16

May-17

Cotton

 148,183

 133,914

 806.50

 707.39

 121.90

 110.94

 54

 53

 0.82

 0.83

PFY

 59,604

 47,212

 270.14

 215.79

 40.82

 33.84

 45

 46

 0.68

 0.72

Poly/viscose

 23,990

 50,473

 156.56

 212.13

 23.66

 33.27

 65

 42

 0.99

 0.66

NFY

 66,485

 56,675

 216.23

 188.84

 32.68

 29.61

 33

 33

 0.49

 0.52

Poly/cotton

 15,536

 12,769

 106.56

 102.77

 16.11

 16.12

 69

 80

 1.04

 1.26

Poly/filament

 21,042

 18,526

 90.02

 67.09

 13.61

 10.52

 43

 36

 0.65

 0.57

Polyester

 13,376

 3,731

 63.96

 20.51

 9.67

 3.22

 48

 55

 0.72

 0.86

Poly/wool

 1,052

 886

 25.53

 18.34

 3.86

 2.88

 243

 207

 3.67

 3.25

VFY

 1,465

 3,621

 12.27

 17.34

 1.85

 2.72

 84

 48

 1.27

 0.75

 

 

Thursday, 17 August 2017 12:03

Yarn Report By YNFX

Crude Oil: Price gains on easing oversupply concerns

Crude oil posted its biggest weekly gain in the last week of July this year since late May with a hike on Friday as data this week eased concerns about surplus supplies, after Saudi Arabia pledged to lower imports while U.S. crude supplies fell more than expected.The market was strengthened by larger than expected inventory drawdowns on Wednesday and signals from Saudi Arabia that the world's biggest oil producer would further reduce output in August.Saudi Arabia pledged earlier this week to lower crude exports to 6.6 million barrels per day (bpd) in August, almost 1 million bpd below the level last year.The US crude futures settled at US$49.71 a barrel, up US$3.94 from previous week while European Brent crude futures settled at US$48.06 a barrel, rose US$4.46on the week. U.S. crude futures gained 8.6 percent for the week while Brent climbed 9.3 per cent. The gains in Brent pushed the difference between the two benchmarks to the widest in two months. Oilfield services firm Baker Hughes reported its weekly count of oil rigs operating in the United States ticked down by two rig to a total of 766. For the month, 10 oil rigs have been added, the fewest for a month since May 2016. Both markets are seeing a strong move in spreads through most of 2017 and 2018 due to shorts covering into heavy producer flow.

Polyester chain: PTA and MEG up, chips down

Ethylene prices in Asian markets rose day by day during the last week in July buoyed by limited product availability, higher downstream PE values coupled with a bullish buying sentiments in the region. The price rise was also a result of high upstream energy costs and strong downstream products demand. Formosa Petrochemical plans to shut its 1.2 mmt per year No.3 cracker, located at Mailiao, Taiwan, on August 15, 2017 for a maintenance turnaround. In Europe, ethylene spot market gained on tightness in supply amid turnaround season in August. In US, July ethylene contracts are expected to fall on lower spot prices. Paraxylene prices in Asia rose during the start of the week but fell midweek only to rise weekend supported by strong energy values and bolstering market sentiment.In US, spot paraxylenemoved up amid healthyexports and strong buying interest. In Europe, paraxylene market was bullish during the week tracking Asian gains.

Mono ethylene glycol prices in Asiarebounded during the week amid healthy transactions and decent demand. The market was also pulled up due to delay in plant restarts and unplanned shut downs thereby creating supply tightness in the market. In Europe, spot MEG moved up this week on firmer market fundamentals and better demand. In US, MEG contract prices were assessed at an increase from June due to steady US markets and higher prices in Asia. Purified terephthalic acid market stayed under adjustment this week and downstream weaving and texturing enterprises lowered run rates due to high temperature and poor demand.In Europe, contract prices were stable on lack of fresh indications. In US, July PTA contracts were unsettled and spot prices rolled over on the week.

Polyester chip prices were down in Asian markets despite upticks in upstream energy and MEG values. Semi dull chip market in China weakened this week.Offers were stable opening the week, but trading was insipid.Polyester filament yarn prices were stable across China, India and Pakistan supported by firm raw material cost. In China, PFY market saw thinner sales and players mainly held back on sidelines citing the mixed signals from raw materials market. Overall sales were lukewarm, and PFY values are expected to continue the range-bound.In Pakistan, selling indications for DTYs were generally unchanged with some spec maintaining stable offers in Karachi market. In India, POY offers were largely steady as producers are yet to make fresh offers after GST regime. Polyester staple fibre prices declined in China while prices saw uptrend in India and Pakistan.In Pakistan, polyester fiber prices recovered in the past four weeks with a sharp rise this week on healthy demand and moderate transactions.

Nylon Chain: Rising CPL and nylon chips push NFY prices up

Benzene prices in Asian markets fell opening the last weekof July but moved up gradually throughout the week in line with rising crude oil prices. In US, benzene spot prices fell despite rise in crude oil values. The prices saw the most pressure from lower styrene values as derivative styrene prices weakened. Marathon shuts US benzene, toluene units in Kentucky. In Europe, benzene spot market was under downward pressure this week with prices moving lower amid increased supply and rather stable demand.Caprolactum prices moved up in Asian markets on firm feedstock and supply constraint during the week. Although, buyers adopted cautious attitude with expectation of increased supply in future while demand was rigid.Given range-bound benzene and eased supply constraint, CPL market will move in a limited range, losing strength to inch up further.

Nylon or polyamide chip prices surged in Asian markets on high cost pressure amid and snug supply.Semi‐dull and bright nylon chip firmed up further, boosted by tight availability and improved buying sentiment.Trading values for bright conventional spinning nylon‐6 chips inched on decent demand for high‐end products.Nylon filament yarn market pulled on the back of strong caprolactum and nylon chip cost although demand was decent. Demand for monofilament and FDY was better thanexpectation while demand for other products was just tepid. Overall, nylon yarn market is expected to march higher slowly.

Acrylic Chain: ACN flat, ASF stable to up

Propylene prices in Asia saw mixed price trends in the last week of Julyalthough demand sentiments were strong amid tight supply. However, the increase in demand may not be sustained as market sources noted that August and September were weak demand season for propylene.In US, propylene markets saw little support from crude oil pricing, which struggled amid persistent oversupply.In Europe, chemical grade propylene prices hit a 6-week high while propylene contract reference price for August has been fully confirmed at a rollover fromJuly.

Acrylonitrile prices were flat in Asian markets amid decent downstream demand and limited supply. In China, buying interest was picking up onexpectation of hikes and lower inventory of suppliers, and ACN prices are likely to see the upwardmomentum. In US, spot acrylonitrileprices were firm on improving supplies in the market. In Europe, spot acrylonitrileprices were down while contract prices settled fully for the month. Acrylic staple fibre prices were stable to up in China while they rolled over in India and Pakistan. In China, prices inched up and demand rallied up slightly. As downstream mills slightly increased the replenishment volumes in line with firm feedstock prices, overall demand turned better. Prices rolled over in India and Pakistan after the revision in mid-July.

Viscose Chain: VSF price continues uptrend

Viscose staple fibre markets moved up in China and Pakistan while they remained unchanged in India. In China, market saw upward momentum recede during the week. However, downstream mills turned cautious, and only maintained small‐volume requirements. As a result, VSF producers saw limited fresh sales, but they still presented steady mindset on support of previous orders.In Pakistan, VSF prices rose over a surge of import prices and healthy demand. In India, viscose staple fibre market largely remained unchanged on the week. Viscose filament yarn markets in Asia were stable to weak amid thin trading atmosphere, as buying interest appeared to be low. As a result, inventory at some VFY producers piled up. Currently, VFY offers rolled over, while actual liquidity was lusterless, as buying interest was low amid thick sidelined stance amongconverters. In India, VFY prices were revised down with no improvements in demand, both on domestic and export markets.

Cotton: Prices up on high demand

US cotton futures on the ICE rose for second straight week, up about 0.6 percent. Prices were also high as better-than-expected weekly export sales data from the U.S. government suggested higher demand for the natural fiber. In Pakistan, slow trading was recorded at the Karachi Cotton Exchange while spot rates decreased. Textile industry federal secretary said Pakistan’s cotton production is likely to increase this year, as Punjab is successful in increasing the area under cultivation by 24 percent.In India, prices moved differently with coarser ones gaining and finer losing. Recent downpours have hit cotton and millet in Gujarat and Rajasthan, where farm experts now fear pest infestations.

Spun Yarn: Viscose and blended yarn prices up in India

Cotton yarn markets continued to remain tepid in China amid shrinking spot trades, however prices were stable on the week. Margins further deteriorated at spinning mills, as cotton prices were staying very firm on the domestic market. In India, the stability of cotton yarn prices was due to the weakness of demand.In Pakistan, cotton yarn prices remained unchanged in the last week while prices fellon the export market, after a fall in buying interest from the foreign customers.Polyester spun yarn offers declined in China and rolled over in Pakistan while it rose sharply in India during the week. In China, polyester spun yarn market weakened and transactions were moderate. In India, polyester spun yarn prices have jumped by nearly 8% in the past four weeks over a similar increase of the polyester fiber prices.In Pakistan, polyester yarn prices were flat after a recent spike amid stable fundamentals.

 

Viscose spun yarn prices were flat in China amid lackluster trading atmosphere. Downstream buying interest remained subdued discussions were largely heard to be range-bound. In India, viscose yarn prices were hiked after many weeks of stability due to support of firmer VSF cost. In Pakistan, viscose spun yarn prices edged up sharply for few specs while it fell for other specs in Karachi market. Blended yarn prices marched north in China and India while it was generally stable in Pakistan. In India, spun yarn prices have continued rising in the past week in India. Both PC and PV prices were seen climbing up in Ludhiana. In Pakistan, the market activities were subdued and prices notionally rolled over. 

After initially opposing and resorting to violent protests in Gujarat, Tamil Nadu and other clusters in the country, textile traders have at last given up and are now rushing for GST registration through online and other means.

A week ago, the most awkward situation was witnessed in Surat where the textile traders not only dissolved the GST Sangharsh Samiti, but also kicked out the Samiti’s founder president for misleading the industry and taking the stir against GST in the wrong direction. Fellow members alleged that Tarachand Kasot wasted 19 days of Surat Textile Industry for something which was “almost impossible to achieve”.

The textile traders in Surat continued their stir for 19 long days, despite being baton charged and facing arrest by the police, to protest imposition of GST which they feared will destroy the livelihood of over six million families across India.They called off their stir after failing to get government’s attention, but not before inflicting a massive loss of more than 2,800 crore rupees in Surat alone, according to a rough estimate.

“After protesting for about three weeks, textile traders realised that they do not have any option but to go along with what the government has decided. It is hence they called off their agitation and are now rushing for GST registration”,  Ajoy Bhattachariya, former president of South Gujarat Chamber of Commerce, and himself a textile trader, said while talking to Textile Value Chain.

“Routine operation in the city is also coming down to normal though it will take months before the industry comes running to its fullest potential”, he added.

Situation in Bhiwandi and Malegaon however is totally different. Powerloom units in the two leading textile clusters producing the major share of grey fabrics and known for their 24x7 culture are still struggling for normalcy.

“Majority of powerloom units in Malegaon are running for just 3 to 4 days a week since the roll-out of GST”, Tarique Mahmood of Ali’s Fabrics said.

“We have all done with GST registration and other necessary requirements. But the problem is that grey cloth merchants and traders in Pali, Balotra and other centers have not yet done their registration hence they are refusing to buy our produce”, he said.

“Under such a situation it will be suicidal if we run textile units for the entire week”, he added.

Malegaon alone has about 2.5 lakh powerlooms and produces about 2 crore meters of grey fabrics every day. The city has just three processing units and hence most of the grey fabrics are sent for processing outside.

The case with the powerloom weavers in Bhiwandi is also more or less same. But the important factor in the two cities which came out very strongly post GST era is that there was no unrest or anger against the government’s decision to impose the levy. Majority of the weavers in the two cities had made up their mind from the day one to adjust their business as per the new situation and were ready to face the challenges whatsoever.

It is however the labourers here who are the worst sufferers due to slowdown in the post GST era. Going by the record, wages of labors who are running 12 looms is about Rs 500 per day and they used to carry home some 2,800 to 3,000 rupees in a week. They are suffering because powerloom units are running just for 3-4 days a week.

“A labor was paid about 3000 rupees every week before GST was imposed and the powerloom units were running all weekdays. Now he is left with a meager 1000 to 1500 or a maximum of 2000 rupees in a week. It has become difficult for them to survive on this sum”, Abdur Razzaq, who is working as a supervisor-cum-technician, said.

“Some had postponed marriages and other family functions. Still, they had to borrow from others so that they can meet regular expenses, especially of the school going children as the academic year has just begun and money is needed to buy textbooks and notebooks”, he added.

Meanwhile, the Goods and Services Tax (GST) Council in its 20thmeeting on Saturday August 05, 2017 slashed the GST rate on textile job work from the existing 18% to 05%.

“One big issue was tax rate for job work in textiles sector. A consensus was evolved that the GST rate for job work throughout the textile chain and even for textile-related items such as apparels, shawls, carpets will be 5 per cent),” finance minister Arun Jaitley told reporters after the meeting.

Earlier, the GST for job works related to textile yarns, other than man-made fibers and textile fabrics, was 05%, while for manmade fibers, it was 18%.

However, the decision has failed to impress the industry as there is a demand to completely abolish the GST on job work.  The industry is also upset because the GST Council did not pay heed to their demand of uniform rate on entire textile chain.

 

“The industry demand was to completely abolish GST on job work and bring uniform GST rate for entire chain. The GST Council’s decision to reduce GST rate on job work will not have any significant and healing impact on the challenges the industry is facing after the imposition of the levy”, Abdullaj Makki of Malegaon Industries & Manufacturers Association (MIMA) said.

 

Abstract: 

This paper objective is to present Lean Production (LP) as a work organisational model that fosters a sustainable work environment in garment industry. This is achievable through some lean tools and initiatives, described in the paper, that reduce the energy, water consumption, environmental waste, raw materials consumption and improve leanness and agility. Lean Production has been extensively implemented in all kind of industries, responding to customers demand with on time delivery of high quality products at reduced costs, through continuous waste elimination (e.g. over production, raw materials, energy and water more than necessary). These problems were addressed in this study by the implementation of lean tools like cellular manufacturing, single piece flow, work standardisation, just in time production etc. Lean tools bring significant changes in providing smooth process flow and productive operations which in turn gives a remarkable contribution in achieving company’s goals and giving quality products at the right time and at the right place.

Introduction

In the current era of globalisation, industries are adopting new technologies to producegoods to compete and survive in the market. The most daunting issue faced by manufacturerstoday is how to deliver their products or materials quickly at low cost and with good quality. Onepromising method for addressing this issue is the application of lean management principles andtechniques. Lean management simply known as lean is production practice, which regards theuse of resources for any work other than the creation of value for the end customer, is waste,and thus a target for elimination. Though there had been numerous claims on the real origin ofLean Manufacturing principles, it was generally accepted that the concept, with this background business needs to compete with efficiency and quickly respond to market needs and niches.There is no doubt that the manufacturing industry are confronted with challenges and looking for improvements in their key activities or processes to cope with the market fluctuationsand increasing customer demands. Applying lean management philosophy is one of the mostimportant concepts that help businesses to complete. In this paper, the literature survey findingssuch as existing level of lean practices, types of lean tools employed, and perceived level of different encountered by the various manufacturing industries are discussed.

 

 RESEARCH OBJECTİVE AND METHODOLOGY

 

The primary aim of this study is to find out the needs and examine the degree to which the conceptsof lean management are put into practice within various manufacturing Industry.

 

(i)                 This is an overview for finding the current situation of lean management practices inmanufacturing industries.

(ii)               It is a measure to identify the constrains that retains lean manufacturing in the infant stage inmanufacturing firms and helps to identify the muda (waste) that evolves in an processing unit andgives out supporting measures to remove the same. The constraint that predict the implementationand sustainability of lean manufacturing tools and techniques are also discussed.

 

 LITERATURE REVIEW

 

A detailed review of research in current trend of lean management in garment industry has been discussed. Lean manufacturing is a multi-dimensional management practice including just in time-quality systems, work teams, cellular manufacturing, supplier management etc. the popular definition of Lean Manufacturing and the Toyota Production System usually consists of the following, Wilson (2009).

• It is a comprehensive set of techniques which when combined allows you to reduce andeliminate the wastes. This will make the company leaner, more flexible and responsive byreducing waste.

• Lean is the systematic approach to identifying and eliminating waste through continuousimprovement by flowing the product or service at the pull of your customer in pursuit of perfection.

 

 LEAN PRINCIPLE

 

Principle 1: Accurately specify value from customer perspective for both product and services.

Principle 2: Identify the value stream for products and services and remove non-value-adding waste along the value stream.

Principle 3: Make the product and services flow without interruption across the value stream. Principle 4: Authorize production of products and services based on the pull by the customer.

Principle 5: Strive for perfection by constantly removing layers of waste.

 

III. KIND OF WASTE

 

A. Overproduction

Producing items more than required at given point of time i.e. producing items without actual orders creating the excess of inventories which needs excess staffs, storage area as well as transportation etc.

 

B. Waiting

Workers waiting for raw material, the machine or information etc. is known as waiting and is the waste of productive time. The waiting can occur in various ways for example; due to unmatched worker/machine performance machine breakdowns, lack of work knowledge, stock outs etc.

 

C. Unnecessary Transport

Carrying of work in process (WIP) a long distance, insufficient transport, moving material from one place to another place is known as the unnecessary transport.

 

D. Over processing

Working on a product more than the actual requirements is termed as over processing. The over processing may be due to improper tools or improper procedures etc. The over processing is the waste of time and machines which does not add any value to the final product.

 

E. Excess Raw Material

This includes excess raw material, WIP, orfinished goods causing longer lead times, obsolescence, damaged goods transportation and storage costs, and delay. Also, the extra inventory hides problems such as production imbalances late deliveries from suppliers, defects, equipment downtime, and long setup times.

 

F. Unnecessary Movement

Any wasted motion that the workers have to perform during their work is termed as unnecessary movement. For example, the movement during searching for tools, shifting WIP etc.

 

G. Defects

Defects in the processed parts are termed as waste. Repairing defective parts or producing defective parts or replacing the parts due to poor quality etc.is the waste of time and effort.

 

H. Unused Employee Creativity

Loosing of getting better ideas, improvement, skills and learning opportunities by avoiding the presence of employee is termed as unused employee creativity.

 

IV. LEAN MANUFACTURING TOOLS

A. Continuous improvement

 

Continuous improvement (CI) can be defined as the planned, organized and systematic process of ongoing, incremental and company-wide change of existing practices aimed at improving company performance. Activities and behaviors that facilitate and enable the development of CI include problem solving, plan-do-check-act (PDCA) and other CI tools, policy deployment, cross-functional teams, a formal CI planning and management group, and formal systems forevaluating CI activities. Successful CI implementation involves not only the n-training and development of employees in the use of tools and processes, but also the establishment of a learning environment conducive to future continuous learning

 

The short description of PDCA cycle is given below

1) Plan: Identify an opportunity and plan for change.

2) Do: Implement the change on a small scale

3) Check: Use data to analyze the results of the change and determine whether it has made a difference.

4) Act: If the change was successful, implement it on a wide scale and continuously assess the results. If the change did not work, begin the cycle again.

 

Thus continuous improvement is an ongoing and never ending process; it measures only the achievements gained from the application of one process over the existing. So while selecting the continuous improvement plan one should concentrate on the area which needs more attention and which adds more value to our products.

 

 

B. Just-In-Time

 

Just in time is an integrated set of activities designed to achieve high volume production using the minimal inventories of raw materials, work in process and finished goods. Just in time is also based on the logic that nothing will beproduced until it is needed.

Just-in-time manufacturing is a Japanese management philosophy applied in manufacturing. It involves having the right items with the right quality and quantity in the right place at the right time. The ability to manage inventory (which often accounts for as much as 80 percent of product cost) to coincide with market demand or changing product specifications can substantially boost profits and improve a manufacturer’s competitive position by reducing inventories and waste. In general, Just in Time (JIT) helps to optimize company resources like capital, equipment, and labor. The goal of JIT is the total elimination of waste in the manufacturing process.

 

C. Total Productive Maintenance

 

Machine breakdown is one of the major problems to production division. The reliability of the equipment on the shop floor is very important because if any one of the machines is down the entire shop floor productivity may be nil. The tool that takes care of these sudden breakdowns and awakes maintenance as well as production workers to minimize these unplanned breakdowns is called total productive maintenance. Total Productive Maintenance (TPM) is a maintenanceprogram, which involves a newly defined concept for maintaining plants and equipment. The goal of the TPM program is to increase production, increase employee morale and job satisfaction.

TPM is set of tools, which when implemented in an organisation as a whole gives the best utilisation of machines with least disruption of production.

 

 

Lean production

Lean Production (LP) is a model of organisation focused on the customer and delivery of on time quality products, materials and information without any wastes, i.e., activities that add no value to the products from the point of view of customer. This designation, Lean Production means “doing more with less” where less implies less space occupied, less transports, less inventories, and most important, less human effort and less natural resources. LP had its roots in Toyota company that designed, after the Second Great War, a production system, Toyota Production System (TPS, which employed some pillars, like JIT production and automation concepts and some tools to reduce lead times and the cost of products.

 

 

It was a book named - "The Machine That Changed the World"- written by James P. Womack, Daniel T. Jones and Daniel Roos that gave the popularity to the Toyota Production System (TPS).

 

Meanwhile, the LP has evolved into a philosophy of thinking, Lean Thinking whose basic principles are

1. Value

2. Value Stream

3. Continuous flow

4. Pull System

5. Pursuit perfection

 

These principles imply the dedication of all people, being the last one - pursuit perfection (principle 5) - the one that implies the strongest and continuously commitment of people in order to improve all the processes and activities in companies, through the waste elimination.

 

 

Lean Production and sustainable development

 

To satisfy the clients, companies consume energy, water and raw materials (natural resources) must be careful used. So, it is necessary to optimize the processes and prevent wastes of resources in a reasonable “doing more with less”. The relationship between Lean production and sustainabledevelopment is evident, sharing the same key idea of “creating or doing more with less”, and someorganisations are benefiting from this relationship since, almost, two decades ago. Reviews had been made about this relationship and created a cause-effect diagram showing the evidence between the seven discussed wastes and the impact (effect) on the environmental performance. Lean Production carries a dramatic reduction to all kinds of wastes being a whole-system thinking and it is totally akin with a socially responsible strategy.

4. CHALLENGES IN LEAN IMPLEMENTATION AND SUSTAINABILITY

 

The challenges faced in the process of implementing and sustain lean is a tedious job as theconcept relates to time, cost, interest, and involvement, the concepts that together support thenew change for development in an firm. The study tells that new firms introduce and accept leanmanufacturing and other innovative concepts than the old and existing firms. The forcesopposing and driving a change to lean is shown in image.The following important factor ofresistance to change in manufacturing sectors is

• Fear to change the legacy system with the new successful trends and methodologies

• Not utilizing the opportunities and advantages of the new policies

• Market destabilisation will lead to force the change, which will be in a non-standardformat.

 

 

Achieving sustainable work environment with Lean production

 

From the previous section, it was obvious that companies could save large amount in reducing wastes, particularly of SME companies. With some exceptions, garmentcompanies are included in this category and presented many problems such as accumulated stocks everywhere due to the wrong product produced, to the anticipated production or to the large lots (overproduction), demotivation of operators and high absenteeism, high level of accidents, operator’s specialisation, high energy and water consumption, high raw materials consumption and disposal, high pollution of rivers, soil and air, among others.

According to the research, the apparel (garment) industry uses high volumes of water in raw material production however authors are more concerned in the manufacturing phase. This section mainly divulgate proposals to reduce the water and energy consumption, environmental wastes and raw materials in manufacturing phase. Additionally, proposals to improve leanness and agility are summarized.

 

 Proposals for the reduction of energy and water consumption

 

This problem analysis could be detailed by technological process of the textile industry: spinning,weaving, textile ennoblement (dyeing and finishing), knitting and sewing. From all the processes, dyeingand finishing, are the one that consume more energy and water: it is impossible to dye and finishing without water and some processes have several washes, so, high water consumption and energy to heat the water.

 

Conclusion

 

Finally, this research shows the application of lean principles to the garment industry. According to our familiarity, it is the prime time that lean thinking has successfully implemented in the garment industry. We hope that this paper contains its worth for practitioners in the garment industries.

Due to increased customer expectations and severe global competition, the Indian garment industries try to increase productivity at lower cost and to produce with best product and service quality. Under these considerations, we have tried to implement lean manufacturing techniques and achieve improvement in process environment, drastic reduction in human fatigue and cost with reasonable investment.

 

References

 

·         Mercado G. 2007. Question Garments- Ask the LeanManufacturing Experts Applying Lean in the GarmentIndustry Retrieved January 12, 2008, Thomas Publishing Company.

·         M.Eswaramoorthi, G.R. Kathiresan, P.S.S.Prasad, P.V.Mohanram. A survey on lean practices inIndian machine tool industries. International journal of advanced manufacturing technology.2011, 52: 1091-1101.

·         Rother. M. and Shook. J. 1999. Learning to see valueStreamMapping to added value and eliminate muda. International Journal of Physical Distribution and Logistics Management.

·         FarhanaFerdousi and Amir Ahmed. 2009. AnInvestigation of Manufacturing Performance Improvement through Lean Production: A Study onBangladeshi Garment Firms, international journal ofbusiness management.

·         Pavanskar. S.J. 2003. Classification scheme for leanmanufacturingtools. Production and inventory management journal

·         Brewer, A.S. and Pojasek, R.B. (2012). Assessing environmental sustainability performance at the national level environmental quality management

·         Willem Niepce and Eric Molleman(1996) “A case study: Characteristics of work organisation in lean production and sociotechnical systems”,

International Journal of Operations & Production Management

 

·         Gadekar, R.A. and Gadekar, A. (2015). Integration of lean-green manufacturing practices to towards environment friendly products: plastic industry. International Journal of Modern Trends in Engineering and Research.

Abstract

The quality of spun yarn depends upon various factors like fibre properties, technological process variables, atmospheric condition etc. Among many, one important technological parameter is the orientation of fibre in yarn. Contribution of fibre properties towards yarn properties will be better if fibres are parallel towards yarn axis. Orientation of fibres in sliver and roving influences the fibre orientation in yarn. In different spinning stages machines and process variables on these machines affect the fibre orientation in sliver, roving and yarn. Carding and drawing processes are designed to increase the parallelism of fibres. Carding is the initial stage and important process for fibre individualization and straightening. In carding process the hooks are formed. This phenomenon deteriorates the yarn quality. So, a fibre configuration and hook fibre in card sliver determines the yarn quality in large extent. This paper reports a glimpse on the different measurement techniques of fibre orientation parameters and impact of carding process variables on fibre orientation and quality.

 

Keywords

Fibre orientation, Orientation index, Cutting ratio, Combing ratio, etc.

  

1.    Introduction

Since last six decades, number of direct [1] and indirect [2-4] methods have been investigated to describe the fibre orientation like fibre straightness, fibre extent, helix angle, coefficient of relative fibre parallelisation, proportion of curved fibre ends, migration parameters, etc. In direct method, tracer fibres are viewed through projection microscope. In indirect method like Lindsley [2] and modified Lindsley [3] the fibre orientation and parallelisation in sliver and roving are measured in terms of weight ratios. The behaviour of single fibres is taken in to account to measure orientation parameters in direct method and from it the sliver or roving or yarn characteristics are extrapolated, which is not realistic. This is because of the number of fibres in the cross section are more and overlapping of fibres is not considered.

In carding is the most important process. Card process parameters influence the fibre orientation and property of sliver, roving and yarn. Carding is the process stage where hooks are formed. The type of hooks and their amount decides the fibre orientation and properties of sliver, roving and yarn. Leading hooks are lesser and smaller than trailing hooks [5]. Configuration of fibre are classified in five groups, namely (i) leading hooks, (ii) trailing hooks, (iii) both ended hooks, (iv) fibre ends are not hooked but not necessarily straight and (v) knotted fibres [1,6]. In card sliver 50% are leading hooks, 15% trailing hooks, 15% both ended hooks and less than 20% of fibres are not hooked at all [7]. During fibre transfer from cylinder to doffer hooks are formed due to fibre buckling. Various researchers have investigated effect of carding process parameters on fibre orientation and quality of sliver, roving and yarn and the quality of carding operation.

 

2.    Measurement Of Fibre Orientation

2.1 Direct Method

The first method for measurement of fibre orientation in sliver, roving and yarn was direct method. This method was based on the use of optical tracer fibre technique and ultraviolet rays for study of hooks. In optical tracer fibre technique [1, 5], 0.1 - 0.3% fibres are dyed with any dark colour. These tracer fibres are mixed with parent fibres in early stage of blow room for better mixing. In optical fibre technique the sliver or roving or yarn is immersed in a solution which is having the same refractive index as of parent fibres. In this the parent fibres optically dissolve while path of dark coloured tracer fibre can be easily seen in horizontal plane and vertical plane through microscope. The optical tracer fibre technique can be used to measure the fibre orientation parameters, like fibre extent, fibre arrangement, degree of parallelisation, type of hooks, and hook extent in sliver, roving and yarn. The schematic view of a fibre seen under microscope for the fibre extent study is shown in Fig. 1.

 

 

Fig. 1- Schematic view of hooked tracer fibre seen under microscope

 

As the parameters like fibre extent and hook extent are dependent on the length of fibres used. Hence the same parameters cannot be compared in different samples prepared from different fibre lengths.

 

Two newly parameters are proposed – fibre overlap index (FOI) and fibre pair overlap length (FPO). Longitudinal behaviour of fibre can be measured by FOI and FPO, which gives the total contact length between fibres [6].

 

In the UV tracer fibre technique the fibres are dyed in any fluorescent dye, and this technique can be used to measure the fibre orientation in web from card or draw frame collecting on black boards. New index name fibre straightness index (FSI) which gives information about fibre straightness and comparable for different samples from different fibres. FSI is the ratio of total axial projected length of a fibre to the actual length of that fibre in a section of length observed directly with the microscope [6].  Fibres used to for FSI study is shown in Fig. 2. The FSI can be calculated by below equation.

 

FSI= n x P / (L1 + L2 + L3 +...+ Ln) 

 

Where n is the number of fibres; P and L1, L2, are the fibre extent and actual lengths of the fibre in the section observed.

 

Fig. 2- Section of sliver seen under microscope

 

To study the fibre migration in the yarn, tracer fibre technique is also used. Mathematical formulae are used to calculate the migration parameters. These formulae specify overall tendency of  a  fibre  to  be  near  the centre  or at the surface of the yarn,  termed  as mean  fibre position (MFP); the rate of change of radial position, termed  as  mean  migration intensity (MMI); and  the magnitude of the deviations from the mean position or  the amplitude of the migration, termed as root mean square  deviation  (RMSD). The schematic view of a fibre seen under microscope for fibre migration study in yarn is shown in Fig. 3.

 

 

 

Fig. 3 – Schematic view of a tracer fibre seen under projection microscope

 

To calculate the migration parameters following formula are given by Hearle et al [9].

 

Where n observations of Y were made over a length Zn.Mean migration intensity

 

 

Root mean square deviation

 

Where Ri & ri are the ith value of yarn radius and helix radius; Zi, the corresponding values of length along the yarn;  

 

2.2 Indirect Method

In the indirect fibre orientation measurement methods, like Lindsley [2] and modified Lindsley few coefficients are calculated for measuring fibre orientation in sliver and roving. Three indices- cutting ratio, combing ratio and orientation index were calculated to measure the fibre orientation in sliver and roving. Two new coefficients are derived by Leon`teva [3] known as proportion of curved fibre ends 'p' to represent curved fibre ends as well as their length and coefficient of relative fibre parallelisation 'Krp' to represents degree of fibre parallelisation and straightening in sliver or roving [6]. The schematic view of the instrument used for indirect fibre orientation measurement is shown in Fig. 4.

 

 

Fig. 4. - Schematic view of the instrument used for indirect fibre orientation measurement

The various coefficients used for indirect method of fibre orientation measurement are given in Table 1.

 

Table 1 - Coefficients used for indirect method of fibre orientation measurement in sliver and roving

Orientation parameters

Formula

Cutting ratio

E / N

Combing ratio

C / ( E + N )

Proportion of curved fibre ends (ρ)

E / ( E + N ) × 100 %

Orientation index

(1 – E / N ) × 100 %

Coefficient of relative fibre parallelization (Krp)

[ 1 – C / ( C + N + E ) ] × 100 %

Modified coefficient of relative fibre parallelization (Krpm)

{ 1 - ( C + E ) / ( C + N + E ) }×100%

Projected mean length (PML), inch

2 x (Wf +Wr) / (Cf + Cr + Nf + Nr + Ef + Er) + M

C= weight of the combed out portion under the side plates (1and 3), E = weight of projected portion from the edge of the side plate after combing, N = weight of the material after combing and cutting under the side plates, M= weight of the material under the middle plate, W = weight of the material clamped by the edge plate after initial combing, and t= width of the clamp in inch (2”).

 

 

 

 

 

 

 

 

 

 

 

 

Fibre orientation in sliver and roving are also measured by classical fibrogram analysis [4]. The excess span length from majority hook beards over span length from minority hook beards was more clearly shown for the 50% and 66.7% span lengths than for the 2.5% span length [10].

Various methods are used to measure the fibre orientation in sliver, roving and yarn. Selection of method depends on the purpose of study.

 

3.      Effect Of Card Process Variables On Fibre Orientation

 

Card is the heart of spinning. Carding is responsible for fibre straightening and complete opening. In carding process majority of fibres change their configuration during transfer from cylinder to doffer. During fibre transfer hooks are formed due to fibre buckling. Trailing hooks are dominant [5]. In card sliver 50% are trailing hooks, 15% leading hooks, 15% both ended hooks and less than 20% of fibres are not hooked at all [7]. Various card process parameters, like sliver weight, doffer speed, carding force, carding settings, etc. influences the card performance, fibre orientation and quality of sliver, roving and yarn. 

 

3.1    Influence Of Card Sliver Hank

 

Change in sliver hank on card influences the fibre orientation in sliver. Coarse sliver hank, increases relative coefficient of fibre parallelisation, projected mean length and decreases the proportion of curved fibre ends. Increase in operational layer due to increase in sliver hank results increase in carding force and inter fibre friction. This ultimately results in increases the fibre straightening and decreases the proportion of curved fibre ends [6, 11]. At low carding rate, with coarse sliver hank caused smaller increase in trailing hooks but definite decrease in leading hooks.  Overall projected mean length decreases with the coarse sliver hank. Card web neps and yarn imperfections increase with the increase in carding rate. At lower carding rate, sliver weight has little effect on card web neps.  However, at higher carding rate the coarse sliver appears to have fewer neps. The yarn imperfections increase as the sliver hank changed to coarser. Increase in carding draft for same sliver hank with heavy feed lap weight, increases imperfections in same yarn count. Increase in carding rate improves the fibre orientation and draw frame sliver uniformity. Sliver hank and carding rate had little effect on the yarn uniformity. With increase in carding rate, the strength and elongation decrease marginally [6, 11-14].  Both fibre parallelisation and fibre hooks decrease as card sliver weight increases.

 

3.2    Influence Of Doffer Speed

Higher card production rate increases the leading fibre hooks in the sliver, because of the reduced peripheral speed ratio of cylinder and doffer [15]. Bad carding, where cylinder speed is reduced and doffer speed is increased, gives better parallelisation even with less fibre separation. Improvement in fibre parallelisation in the subsequent processes is better with good carding, probably due to better fibre separation. Projected mean length (PML) which measures the fibre parallelisation was higher under bad carding condition at card, draw frame and riving stages. Because of better fibre separation and degree of parallelisation with good carding, the rate of improvement of parallelisation in the subsequent process was high [16]. Bad carding condition causes reduction in majority hooks and increase in minority hooks at the card stage.  Majority hooks are more under good carding at the card stage and this trend continues up to first and second drawing stages.  This indicates that the rate of unhooking during drafting at drawing remains same, irrespective of the carding condition [16]. Nep removal at carding significantly improves with the reduction in card production due to intensive carding action. High production rate increases neps in drawing because of inferior carding quality. Better carding quality with lesser production increases yarn tenacity [17]. Thick places and neps and U% in ring yarn increases with the increase in card production [18]. Decrease in card production rate improves the yarn properties.

 

3.3 Influence Of Carding Force

The force required to individualise a tuft in between cylinder-flat zone is called carding force. Carding force increases with increase in operational layer on the cylinder and tuft size. Carding force influences the quality of carded sliver with regard to neps and regularity. Increase in carding force per unit load decrease both the neps content and the U % of the sliver [19-21].

 

3.3    Influence Of Carding Process On Yarn Characteristics

Carding process influences the preparatory products and yarn quality. Intensive opening by changing carding process improves yarn regularity and tenacity up to certain extent. Intensive opening generates short fibres, leading uncontrolled drafting and make yarn uneven and weak. Increase in the openness at higher level increases yarn hairiness because of short fibre generation [22]. Lesser fibre individualisation causes more slubs, thick places and neps in yarns.

 

Process of carding changes the fibre arrangement in sliver, roving and yarn. Quality of carding depends on feed material weight, carding force, production rate and processing parameters. Process of carding generates hooks. Majority of hooks are trailing hooks followed by leading and both ended hooks.

 

 

4.    Conclusion

 

The fibre orientation parameters of sliver, roving and yarn are measured with different measuring techniques. Concept of measuring the fibre orientation was almost same in all the measurement techniques. Modifications in various measuring techniques were done. Fibre orientation parameters correlate with sliver, roving and yarn characteristics; and used for selecting the process parameters in spinning preparatory.

Carding process affects the fibre orientation in sliver, roving and yarn. Performance of subsequent process and yarn characteristics are affected by the carding quality.

 

 

 

 

References

1.      Morton W E & Summers R J, J Text Inst, 40, 106, (1949).

2.      Lindsley C H, Text Res J, 21 39-46, (1951).

3.      Leont'eva I S, Tech Text Ind USSR, 2, 57-63, (1964).

4.      Iyer I K P, Parathasarthy M S & Sundram V, Resume of Papers, Twenty First Joint Technological Conference of ATIRA, BTRA, and SITRA, 12-15 (1980).

5.      Morton W E & Yen K C, J Text Inst, 43, T463-T472, (1952).

6.      Akshay Kumar, S. M. Ishtiaque & K R Salhotra, Indian J Fibre Text Res, 33, 451- 467, (2008).

7.      Klein W, A short staple spinning series, A Practical Guide to Opening and Carding (The Textile Institute), 1987.

8.      Sengupta A K & Chatopadhyay R, Text Res J, 52, 178-181 (1982).

9.      Hearle J W S & Gupta B S, Text Res J, 35, 788 (1965).

10.  Audivert  R, Text  Res  J, 41, 365-366 (1971).

11.  Ishtiaque S M & Vijay A, Indian J Fibre Text Res, 19, 239-246 (1994).

12.  Simpson J & Fiori L A, Text Res J, 44, 327-331 (1974).

13.  Basu A, Asian Text J, (4), 74-78, (2002).

14.  Simpson J, Text Res J, 42, 590-591, (1972).

15.  Wolfgang T,  Melliand Textilber, 65, E211- E215, (1984).

16.  Nerurkar  S K,  Indian J  Text Res, 4, 63-70, (1979).

17.   Rakshit A K  &  Balasubramanian N., Indian J Text Res, 101, 58-162, (1985).

18.   Rakshit A K & Balasubramanian N, Indian J Text Res, 8, 95-100, (1983).

19.  Sengupta A K,  Vijayaraghavan N  & Singh A, Indian J Text Res, 8, 59, (1983).

20.  Sengupta A K,  Vijayaraghavan N  & Singh A, Indian J Text Res, 8, 64, (1983).

21.  Sengupta A K,  Vijayaraghavan N  & Singh A, Indian J Text Res, 8, 68,(1983).

22.  Ishtiaque S M, Chaudhuri  S & Das A, Indian J Text Res, 28, 405-410, (2003).

 

 

 

 

 

Fashion is one’s style and illustrates its character in the society.  For instance, a man with pop coloured trousers and well pleated breasted coat will incite more curiosity in your heart than a man with a jeans and T-shirt.  The way you drape or dress states a lot of your personality. So it is always said to choose your clothes wisely.

 

1. What are the trends that will decide the future of fashion e-commerce?

Any type of fashion based e-commerce knows the technique to manipulate the desires of the consumer. They employ firm techniques to take a dig much deeper into the customer’s mind to raise the urge or need of that product. Monthly or weekly sales, offers, discounts on unbelievable price tags are some of the main attractions that many e-commerce brands such as Flipkart, Myntra, IndiaRush, Snapdeal do. An online seller doesn’t stop at offers or discounts but also provides outstanding collection. More the vibrant clothes are available at an affordable price; more the people will opt for them. Another story is about the millennial who are more vulnerable and tend to select and redesign their wardrobe in every few months. To steal the attention, brick and mortar retailers are moving into online platforms to target maximum contemporary loving people. In this case, they have also introduced AR (augmented reality) and VR (virtual reality) technology where people can purchase products online easily. One can check at the comfort of their couch if the dress’s colour, style, pattern, length are suiting them or not through augmented reality.

Understanding the geographical locations of the people is also important; for instance, people from South or East India with an age group of 30-45 will majorly purchase sari.

Inclination Towards Celebrity Labels

Many Bollywood and Hollywood superstars have launched their own signature lines such as Kylie Jenner’s Cosmetics, The Label Life, Skull, Rheson, All about You and much more. The fashion enthusiast loves to have someone wearing their favourite as a support or a kind of inspiration which they completely get from the sides of the stars. ‘Fast Fashion’ term has evolved to express the movement of recent designs from the catwalk platforms to the consumer’s wardrobe.

Even many e-commerce websites have approached this technique and have gathered a massive attention as well.

2. How are Indian ethnic wears evolving with western essence nowadays?

The fashion industry is oozing with lots of western fashion and tastes and in this chaos, it has been really difficult to choose one’s ethnic best. There is a still chance for many brands to come up in ethnic or Indian traditional genre and one of the companies trying to project wide selection of women ethnic wears is IndiaRush. Not only e-commerce sites, but there are many brands who are posting their product on social media platforms such as Facebook, Instagram, Whatsapp and etc. for selling purpose. In a survey, it has been noticed that almost 85% of the generation purchase their apparels and fashion essentials from online stores because they provide it in a more cost efficient way with latest trending tag.

3. Is Virtual Reality instilling into the fashion E-Commerce marketplace?

VR and AR are the major talks of the e-commerce inspired town. People are more into experiencing realistic things, whether it is about online shopping or a free trial of any beauty product. For such curious customers, augmented reality is a boon in online shopping. The shopper can see them in that particular product while being at the comfort of the couch at home. This helps the customer to make better decisions while purchasing online and on the other hand promotes sale growth because the technology strengthens the shopper’s mind to purchase the same.

 

The amalgamation of ‘fast fashion’, augmented and virtual reality while shopping, and other essential notions and technique have increased the demand for e-commerce shopping.

 

Goods and Service Tax (GST) rolled out on July 1st, 2017 starting a new era of economic reform in the country. GST subsumed all the central as well as state taxes and brought the country into one single regime thus replacing the complex multiple indirect tax structure. This reform is intended to create India into a single market for manufacturing and selling of goods, bring in greater tax compliance and efficient resource allocation which in turn will help in improving manufacturing productivity.

GST has now replaced Central taxes and duties such as Excise Duty, Service Tax, Counter Veiling Duty (CVD), Special Additional Duty of Customs (SAD), central charges and cesses and local state taxes, i.e., Value Added Tax (VAT), Central Sales Tax (CST), Octroi, Entry Tax, Purchase Tax, Luxury Tax, state cesses and surcharges and Entertainment tax (other than the tax levied by the local bodies).

GST is a destination based tax structure and it is levied only at the consumption point. Under this structure, a merchant has to pay tax only on the value addition of its product and allows manufacturers and retailers to reclaim input tax credit paid during the purchase of raw material thus setting off the indirect tax. This feature eliminates the cascading effect of taxes which used to trickle down to the end consumers.

GST council has approved on five base rates i.e. 0%, 5%, 12%, 18%, and 28% on different goods and services.

 

GST and the textile industry

Under the new regime, textile commodities will fall under the 0% to 18% tax cloud. The below given table illustrates the change in the tax structure at different segments in the textile industry:

Table 1: Tax Structure in Textile Value Chain

Textile Value Chain

Old Tax Structure

GST Rate

Fibre Manufacturing

   

Natural

Excise- 0%, VAT/ CST- 0-5%

Cotton - 5%, Silk and Jute - 0%

Manmade

Excise- 12.5%, VAT/ CST- 0-5%

18%

Spinning (Yarn)

Excise- Exempt, VAT/ CST- 0-5%

MMF – 18%, Others - 5%

Weaving/ Processing (Fabric)

Excise- Exempt, VAT/ CST- 0-5%

5%

Garmenting and Made-ups

   

RMG and Made-ups < Rs. 1,000

Excise- 0%, VAT/ CST- 5%

5%

RMG and made-ups > Rs. 1,000

Excise- 1.2%, VAT/ CST- 5%

12%

On comparison between the two duty structures, cotton value chain which was exempted of any excise duty (exclusive of VAT/CST) will now have to pay a minimum of 5% duty across different segments. While in case of MMF value chain, which was earlier paying 12.5% excise duty on fibre and yarn level (exclusive of VAT/CST) will now pay now pay 18% GST for the same. This indicates that the textile industry will be paying higher taxes overall.

Textile industry faces a unique issue in the presence of a differential duty structure both in different fibre value chains and within specific value chains also. This situation was prevalent in the earlier tax regime and is still relevant for the new GST regime. The result of such a structure is the accumulation of duty at a certain point in the value chain wherein the duty paid on the input is higher while the duty on the output is comparatively lower. This accumulated duty is embedded in the cost of the final product by the seller as he/she is unable to set off the input duty which in turn leads to higher prices.

Now, with the onset of higher duties, the quantum of duty accumulation will increase which will lead to further increase of prices.

To analyze these implications, four basic value chains have been considered which encompasses the majority of textile production in India.

a)      100% Cotton Value Chain

b)      MMF Rich Blended Value Chain  - PC (65/35)

c)       Cotton Rich Blended Value Chain  - PC (48/52)

d)      100% MMF Value Chain – PV (50/50)

Implications on 100% cotton value chain:

Cotton textile value chain attracts a singular rate of 5% across the value chain except on cotton garments with retail value of more than Rs. 1000 per piece. Due to a constant duty rate being charged on subsequent products (with higher value addition) across the value chain, there will be no duty accumulation. At each stage of this chain, manufacturer will be able to avail input credit on the purchase of raw material and will only pay duty for the value addition. Due to the balanced tax structure, prices of intermediate products (i.e. fibre, yarn and fabric) are not expected to increase. However, on the retail end of the chain, prices of cotton garments (value more than Rs. 1,000) will rise due to higher duty paid by the retailer.

Table 2: Scenario for 100% Cotton Value Chain

Product

Spec.

Price/unit

Unit

GSM

Equiv. Qty.

Unit

Sale Price

GST
Rate

GST Appl.

Price after GST

Net Duty Paid

Fibre

S-6 cotton, 29 mm, 3.8 mic.

122

Rs./ kg

 

1.00

Kg

122

5%

6.1

128

6

Yarn

40s combed yarn, compact

220

Rs./ kg

 

0.75

Kg

165

5%

8

173

2

Finished fabric

40x 40 / 140x72

110

Rs./ m

125

3.75

m.

412

5%

21

433

6

   Dyes and     Chemicals

 

10

Rs./ m

     

37

18%

7

   

Garment

Men's shirt

350

Rs./Pc

 

2.50

pc.

874

5%

44

918

23

Retail

                     

  Option A

<Rs. 1,000

875

Rs./pc

 

2.50

 

2,185

5%

109

2,294

66

  Option B

>Rs. 1,000

1050

Rs./pc

 

2.50

 

2,622

12%

315

2,937

271

Source: Wazir Analysis

The above shown table represents duty flow in a 100% cotton value chain, taking 1 kg of cotton fibre and further converting it into subsequent products. At retail level, retailers keeping price points above Rs. 1,000 per garment will have to pay approximately 4 times higher net duty to government as compared to garments sold at price points below Rs. 1,000.

This will lead to the following two scenarios:

a)      Dip in prices of low cost garments below Rs. 1,000 per garment so that they are subjected to 5% rate

b)      Increase in prices of high cost garments above Rs. 1,000 per garment as they will attract significantly higher duty rate of 12%

 

Implications on MMF Rich Blended Value Chain:

This situation is particularly complex for 100% MMF and MMF blended value chain as there is significant variation in the tax rates at fibres/yarn (18%) and fabric level (5%). This duty differential will create a higher tax incidence on fibre and yarn level than on the successive value chain segment i.e. fabric which will lead to duty accumulation at the weaving stage.

Table 3: Scenario for MMF Rich Blended Value Chain

Product

Spec.

Price/unit

Unit

GSM

Equiv. Qty.

Unit

Sale Price

GST
Rate

GST Appl.

Price after GST

Net Duty Paid

Fibre A

Polyester

82

Rs./ kg

 

0.58

kg

47

18%

8

56

 

Fibre B

Cotton

122

Rs./ kg

 

0.42

kg

52

5%

3

54

 

PC Fibre Blend

65:35 blend

   

 

1.0

 

99

 

11

110

11

Yarn

40s PC yarn

142

Rs./ kg

 

0.9

kg

133

18%

24

157

13

Finished fabric

40x 40 / 100x84

57

Rs./ m

115

5.1

m.

290

5%

14

304

(19)

Dyes and Chemicals

 

10

Rs./ m

 

   

51

18%

9

   

Garment

Men's shirt (FOB)

250

Rs./pc

 

3.4

pc

848

5%

42

890

28

Retail

 

750

Rs./pc

 

3.4

 

2,543

5%

127

2,670

85

Source: Wazir Analysis

The above shown table represents duty flow in polyester cotton (65/35). The applicable duty at finished fabric level is smaller than the cumulative duty paid on the input raw materials i.e. fibre and yarn resulting in a net negative duty. This means that weaver will not be able to reclaim full input credit on purchase of yarn and hence the weaver will increase the price of fabric in order to mitigate the loss. This increase in fabric prices will further reflect in the increased prices of MMF blended garments.

Implications on Cotton Rich Blended Value Chain:

Duty structure under this chain will be such that duty accumulation will occur at both yarn and fabric stage. As mentioned earlier, a cotton rich value chain will attract 5% duty rates at all levels (i.e. fibre, yarn, fabric etc.), however, due to addition of MMF at the fibre stage, the net duty at that level will become greater than at the subsequent yarn stage which will trickle down to fabric also.

Table 4: Scenario for Cotton Rich Blended Value Chain

Product

Spec.

Price/unit

Unit

GSM

Equiv. Qty.

Unit

Sale Price

GST
Rate

GST Appl.

Price after GST

Net Duty Paid

Fibre A

Polyester

82

Rs./ kg

 

0.40

kg

33

18%

6

39

 

Fibre B

Cotton

122

Rs./ kg

 

0.60

kg

73

5%

4

76

 

PC Fibre Blend

48:52 Blend

 

 

 

1.0

 

106

 

10

115

10

Yarn

40s PC yarn,

160

Rs./ kg

 

1.0

kg

153

5%

8

161

(2)

Finished fabric

40x 40 / 100x84

57

Rs./ m

115

5.2

m.

297

5%

15

312

(2)

Dyes and Chemicals

 

10

Rs. /m

 

 

 

52

18%

9

 

 

Garment

Men's shirt (FOB)

250

Rs./pc

 

3.5

pc

868

5%

43

911

29

Retail

<Rs. 1,000

750

Rs./pc

 

3.5

 

2,603

5%

130

2,733

87

Source: Wazir Analysis

This situation will result in blended yarn manufacturers keeping MMF component on the higher side in the blend composition as compared to the cotton component in order to avoid duty accumulation at this stage. This might also result in an increase in both yarn and fabric prices to offset the accumulated duty loss.

Implications on 100% MMF Value Chain:

A 100% MMF value chain will face the implication as that of MMF rich value chain wherein there will be duty accumulation at the fabric stage.

Table 5: Scenario for 100% MMF Value Chain

Product

Spec.

Price/unit

Unit

GSM

Equiv. Qty.

Unit

Sale Price

GST
Rate

GST Appl.

Price after GST

Net Duty Paid

Fibre A

Polyester

82

Rs./ kg

 

0.50

kg

41

18%

7

48

 

Fibre B

Viscose

161

Rs./ kg

 

0.50

kg

80

18%

14

95

 

PV Fibre Blend

50: 50 Blend

 

 

 

1.00

 

121

 

22

143

22

Yarn

2/30s PV Yarn

176

Rs./ kg

 

0.99

kg

173

18%

31

205

9

Finished fabric

2/30s* 2/30s/ 72*48, Twill

162

Rs./ m

202

3.04

m.

493

5%

25

518

(12)

Dyes and Chemicals

 

10

Rs./ m

 

 

 

30

18%

5

 

 

Garment

Men's Trouser FOB

350

Rs./pc

 

2.54

pc

888

5%

44

932

20

Retail

 

 

 

 

 

 

 

 

 

 

 

Option A

<Rs. 1,000

875

Rs./pc

 

2.54

pc

2,220

5%

111

2,331

67

Option B

>Rs. 1,000

1,038

Rs./pc

 

2.54

pc

2,633

12%

316

2,949

272

Source: Wazir Analysis

To set off the higher duty paid on raw material i.e. yarn, weavers will increase the prices of fabric which will further result in increased garment prices.

Conclusion

As per its defined objectives, GST will have a positive influence on the textile industry in terms of eliminating distortions in the tax system, reducing compliance for industry, facilitation of input tax credit etc. However, GST has failed to resolve the issue of differential duty structure in the industry as well as the issue of fibre neutrality. Duty accumulation was an issue for the MMF industry earlier also, however, with the increase in the duty rates, it will become more prominent and it will lead to a likely increase in the prices of finished goods.

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