Banks told to recast Rs 35,000 crore debt for textile sector


NEW DELHI: The government on Tuesday asked banks to restructure loans worth Rs 35,000 crore for the textile sector, bringing relief to the sector, which is reeling under the impact of volatile yarn prices and slowdown in major markets. Banks have an exposure of Rs 1.56 lakh crore to the sector, which means just under a quarter of the loans will be restructured in one of the biggest loan recast programmes. 

The long-pending demand of the industry will benefit around 2,000 cotton textiles mills, a majority of which are in Tamil Nadu, and the man-made fibre segment in Gujarat, where assembly elections are due later this year. Of the overall package, nearly Rs 27,000 crore is expected to be pocketed by the cotton mills, while Rs 3,600 crore will flow to the man-made segment. Before assembly elections in Uttar Pradesh, the government had announced a package for weavers, which included softer loan terms. 

The latest lifeline to the largest employer in the manufacturing sector comes at a time when industrial growth and exports have slowed and there is an all-round demand to boost economic activity. A healthier financial position of Indian textile companies also augurs well for their export competitiveness. The package, finalized after a meeting between finance minister Pranab Mukherjee and commerce, industry and textiles minister Anand Sharma, will include a two-year interest moratorium and conversion of eroded working capital into longer-term loans with three to five year term. 

Soon, aggressive textile policy for upliftment of cotton industry


SURAT: Chief minister Narendra Modiannounced that the state government is in the process of formulating an aggressive textile policy for the upliftment of the cotton textile industry and taking the ‘made in Gujarat’ brand to the foreign shores. 

Modi said the government is working on five ‘F’- farm, fibre, fabric, fashion and foreign. 

“We are the leading cotton producing state in the country. Now we want to transform the state’s cotton industry as a leader in yarn manufacturing, cloth manufacturing, readymade garment manufacturing and later we will reach out to the world market with our products,” he said. 

“Why there is a need to export our cotton? All the cotton produced will pass from different stages of manufacturing in the state itself and then we will capture the world market. We want the world buyers to flock to Gujarat in search of readymade garments,” he added. 

Interestingly, Modi himself had hit out at the UPA government for banning cotton exports recently. 

Modi’s announcement has not gone down well with the textile entrepreneurs, weavers and industrialists in the city. Reason: Surat is the country’s biggest man-made fibre industry and it is facing a tough competition from the cotton yarn and cotton garments in the domestic as well as international markets. 

“The aggressive policy for textile as announced by the CM is only for the cotton sector. Surat is a man-made fibre hub and there is nothing for us to welcome the announcement,” said a leading textile entrepreneur 

He added, “The formulation of the new textile policy for cotton by the state government would put the city’s man-made fibre hub at risk. Many industrialists, weavers and entrepreneurs may turn to cotton-based textile production instead of using polyester yarn.”

Thai delegation explores business opportunities in Gujarat


VADODARA: A trade delegation of Thai representatives led by ambassador Pisan Manawapat visited the city on Tuesday to gauge industrial and infrastructure development in and around it.

Manawapat with around half-a-dozen other officials from Thailand met officials at Vadodara Municipal Corporation (VMC), Vadodara Chamber of Commerce and Industry (Vand are scheduled to visit key industrial units around the city on Wednesday.

VMC commissioner Ashwini Kumar said the delegation was on a visit to familiarize itself with the business environment in the state. “They discussed urban and industrial development in and around Vadodara extensively with us. They were keen to know how the city would develop in the coming years and what opportunities would emerge here,” he added.

Manawapat said the delegation was there to see the potential for business in the state. “So far, business houses from Thailand have had a good presence in south India. We will introduce Gujarat as a destination for business to them,” he said. The ambassador said that he had also been briefed regarding the Delhi-Mumbai Industrial Corridor. “We will look into the opportunities available on this front too,” he said. He added that prominent Thai construction companies had presence in India and were involved in infrastructure projects.

At VCCI, the delegation met industrialists across a broad spectrum of industrial sectors. Even representatives of education institutes and NGOs were present. “Thai prime minister Yingluck Shinawatra has announced a Free Trade Agreement with India. Once this is signed, we expect the trade between the two nations to multiply and bilateral trade may exceed 10 billion USD,” Nilesh Shukla, senior vice-president, VCCI, said.

Former VCCI president Jatin Bhatt said the Thai delegation was particularly impressed by the power situation in the state. “They are eyeing sectors like power, textiles, automobiles and electronics,” he added.

Malegaon to have common fabric processing facility


Powerloom owners in textile cluster of Malegaon in western Indian state of Maharashtra are in the process of setting up their own facility to process fabrics. The new facility would be the first government sponsored Common Facility Centre (CFC) in Nashik district.

Malegaon currently has two privately-owned process centres with a capacity to process a maximum of 250,000 metres of cloth per day, which is very small compared to an estimated production of about 10 million metres of grey cloth every day.

So far, around 70 percent of grey poplin manufactured in Malegaon was sent to process houses in Balotra and Pali in Rajasthan. But, a court order in February this year banned textile process houses in these two towns from discharging waste water and effluents into the Luni river.

The Rajasthan High Court asked the process house owners to install plants for treating waste water before they are again allowed to begin their operations. The court order resulted in closure of several process houses in Balotra. 

To ease the situation for Malegaon powerloom owners, Dr. Baliram Hirey Hi-Tech Textile Cluster Services Pvt Ltd. is setting up the CFC, which will have a fully automatic and hi-tech process house. It will provide pre-weaving and post-weaving industrial assistance to the powerloom weavers.

Mr. Prakash Kankaria, Director of Dr. Baliram Hiray Hi-Tech Textile Cluster Services, told fibre2fashion, “We are installing a CFC sanctioned by the Government of India. In the CFC, we are going to install wet processors for bleaching, mercerization, etc.”

Apprising about current situation in Malegaon, he says, “There are around 200,000 traditional powerlooms in Malegaon which manufacture around 10 million metres of cloth per day, but the town does not have adequate facilities for pre-weaving and post-weaving treatments. There is also a lack of technical support.”

“Currently, we are installing automatic machines for various processes and then we will be installing the process house. This will enable us to produce fabric that is ready for dyeing,” he states.

The CFC is being established with an investment of Rs. 158.4 million. The Central Government is funding 80 percent of the capital and the state government is contributing another 10 percent.

“Our stake in the CFC project is 10 percent. We are 15 member companies and we have around 2 acres of our own land on which we are setting up the CFC,” he informs.

“The project will take at least one year to be completed and become operational. The members will provide their fabric and get it processed on job basis. This will help the powerloom industry to bloom in and around the town,” he opines.

“Currently, very low grade quality cloth is produced in Malegaon. So, the CFC would also act as a catalyst for upgrading the quality of the cloth from 50 GSM to 200 GSM. Companies can also take up manufacturing of denim fabrics, suiting, shirting, etc.,” he avers. 

Tripura govt announces steps to boost silk production


In view of soaring demand for its silk in local as well as international markets, the government of Tripura, a state in North-eastern India, has decided to introduce powerlooms at the state-owned silk producing units to enhance their productivity, Handloom and Industries Minister Jitendra Chowdhury said.

Earlier, only the neighbouring states sought Tripura silk, but now there is demand even in foreign countries, the Minister said. He added that the government is emphasizing on increasing the production of silk moth and upgrading state-run production units with powerlooms in place of hand looms.

The state’s silk turnover has increased almost 100 percent this year compared to last year, which enabled the state government to earn Rs. 10 million in revenues, the Minister said.

Mr. Chowdhury stated that mulberry cultivation is undertaken on around 3,352 acres of land in the state by around 7,000 cultivators, and the state is actively trying to increase this area.

The government intends to raise production of silk sarees in government-run units from 3,969 pieces to 8,750 pieces, this year, and has also decided to boost value addition through introduction of new designs, the Minister said.

According to an expert in textile designing, increased value addition calls for preparation and application of more beautiful designs, and local entrepreneurs should be motivated on this front.

17 textile units stop operations in SIPCOT


Erode,May 18 (PTI) Seventeen textile dyeing units in SIPCOT Industrial Growth Centre at Perundurai stopped operations after the 90-day time limit granted by the Pollution Control Board lapsed on Wednesday, PCB officials said today. An official said 18 months ago, PCB had ordered the closure of the 17 textile units for “flouting” PCB rules. They approached the court and on its direction, they approached the PCB who granted 90 days time to enable them fulfil pollution control norms. Claiming that they have fulfilled PCB norms, Textile unit sources said they will again approach PCB seeking a permanent license to start operations. Meanwhile, it was stated that the PCB will monitor the pollution level periodically and criminal action would be taken for any violations like discharge of untreated effluents into water bodies.

New code of conduct to make sustainable change in textile


The UN Global Compact launches its first sector-specific initiative, a code of conduct for the entire fashion industry.

The launch will take place at the Danish Fashion Summit, and in the lead-up to this event Novozymes has been collaborating with the Danish Fashion Institute to provide ideas for sustainable textile production. The input will be passed on for use in the UN Global Compact Code of Conduct.

“Fashion is one of the most polluting industries in the world. The fashion industry has a need to show the world that it can change into a more sustainable path, and to do so it’s crucial that we build partnerships and exchange ideas across the industry,” says Eva Kruse, CEO of Danish Fashion Institute.

At the Fashion Summit, a whole catalog of ideas for a more sustainable textile industry will be delivered to the UN by the Danish Fashion Institute.

“We can’t force companies into sustainability, but we can inspire and motivate them through existing solutions and new technologies – and the input we have had from Novozymes has given our input for sustainability in the textile industry a big boost,” Eva Kruse continues.

Sustainable savings
The textile industry has an option to take a sustainable path. 

Every year, 9 million tons of knitwear is produced. Saving between 1 and 1.3 tons of CO2 emissions for each ton of knitwear produced, enzymes can save 0.3 kg of CO2 per T-shirt and 9 million tons of CO2 annually. That is equivalent to removing 4 million cars from the road.

Production of our T-shirts also requires huge amounts of water. Enzymes are naturally efficient processing aids that can accelerate processes and work in synergy to shorten production processes and handle more steps at once. Through this ability, enzymes have been proven to save 70,000 liters of water per ton of knitted fabric produced in a textile mill. That is about 20 liters per T-shirt.

Sustainable input
To provide ideas and input for the UN Global Compact Code of Conduct, Novozymes has focused on several areas. One of these concerns clean technologies that can reduce energy and water consumption as well as reducing waste in the textile industry. Another area of input focuses on textiles produced using environmentally friendly energy sources.

“Our main focus has been to provide input and inspiration for how the textile industry can move away from processes with high water and energy consumption. With biotech a textile mile could save water and energy. The technology exists today, but we need accelerate change,” says Pernille Lind Olsen, Marketing Manager at Novozymes.

“At Novozymes we hope that the UN Global Compact Code of Conduct will help the industry to move toward more sustainable production of textiles,” says Pernille Lind Olsen. “The industry needs to initiate sustainable change itself. The world really needs it, customers will demand it, and politicians will eventually decide on it.”