FM HEARS APPAREL EXPORTERS' WOES AEPC'S RS 1.60 CR PANDEMIC RELIEF TO TN - EXPORT-LEDGROWTHFOCUS COUNTRY
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YR 21 ISSUE 07
APPAREL EXPORT PROMOTION COUNCIL MAGAZINE I JULY 2021 100
FM HEARS APPAREL EXPORTERS’ WOES
AEPC’S RS 1.60 CR
PANDEMIC RELIEF TO TN
MSMEs TO DRIVE FOCUS C
OUNTRY
EXPORT-LED GROWTH SOUTH AF
RICA
APPAREL | CHAIRMAN’S MESSAGE
Dear Friends,
J
une 2021 marked a key turning point in terms of
health and economic recovery starting with the an-
nouncement of free Covid-19 vaccines for all adult
population in India and ending with an all-time high quar-
terly exports of $95 billion in April-June FY2021-22.
With this historic achievement, the target of attaining
$400 billion in current fiscal FY22 seems pretty attainable.
Daily cases of infection have fallen to less than 50,000
helping many states to reopen the economy and resume
industrial activities in full capacity.
While export of cotton yarn/ fabrics/ made-ups
has surpassed the pre-Covid levels like the overall
merchandise exports of the country, apparel export is also
likely to catch up and go beyond the 2019-20 levels with 27 June 2021, Apparel India magazine brings to you an
important states removing the lockdowns. analysis of the sector.
Many thanks to Hon’ble Prime Minister Shri Narendra In continuation of our effort towards promoting MMF
Modi for ensuring free vaccines for all – a must for garment production and exports, the Council organized a
economic recovery as it will help ensure safer workplaces. webinar with Birla Cellulose to promote domestic sourcing
I also thank our members who contributed more than Rs of viscose fabric. We also held virtual B2B meetings with
1.60 crore towards fighting the pandemic in Tamil Nadu. buyers in Poland, Darlington Fabrics Corp (USA) and
I am happy to share that after taking charge as President Israeli clothing company Castro, among other meetings.
of Federation of Indian Export Organisations (FIEO) on We sincerely thank the government for accepting
28 June 2021, I met Hon’ble Finance Minister Smt Nirmala many of our recommendations like the extension of
Sitharaman and apprised her about concerns related to Interest Equalization Scheme (IES) for pre and post
the apparel export sector. shipment rupee export credit for another three months
I also had the great opportunity to discuss our issues till 30 September 2021, and for initiating a probe into the
and challenges with Commerce Secretary Mr Anup possibility of cartelization leading to sudden spikes in
Wadhawan, Textiles Secretary Mr Upendra Prasad cotton yarn prices.
Singh, Niti Aayog CEO Mr Amitabh Kant, Directorate We have urged the government to make ECLGS
General of Foreign Trade (DGFT) Mr Amit Yadav, MSME available for loans sanctioned even after 29 February 2020.
Secretary Mr BB Swain, Central Board of Indirect Taxes Secondly, we have requested that the total outstanding
and Customs (CBIC) Chairman Mr Ajit Kumar and credit limit of Rs 500 crore may be removed while keeping
Department of Commerce Joint Secretary Ms Nidhi Mani the cap on additional credit under GECL same at Rs 100
Tripathi, among few others. crore. Further, we have requested for early clearance of
While domestic economic recovery may be subject to RoSCTL cases pending since January 2021.
inoculation of all adults by year end, the global export Please share your comments and suggestions on
demand including that for apparels remains buoyant, chairman@aepcindia.com. Wish you all an excellent year
and the Indian economic recovery may be export-led. of growth in apparel exports!
And, leading the pack of exporters will be MSMEs for
the personalized management they provide. Celebrating Dr A Sakthivel
their significance along with the world on MSME Day on Chairman, AEPC
APPAREL EXPORT PROMOTION COUNCIL MAGAZINE | JULY 2021 /1
APPAREL | EVENTS CALENDAR
EVENTS
8-11
CALENDAR
Oct
Aug, 2021 2021
SOURCING AT MAGIC FAIR, APPAREL TEXTILE SOURCING, CANADA
LAS VEGAS, USA
Sept Nov
2021 2021
INDIA TEX TREND FAIR (ITTF) TOKYO, AUSTRALIA INTERNATIONAL
JAPAN SOURCING FAIR
3-6 Feb
2022
Sept, 2021
WHO’S NEXT, PARIS, FRANCE SOURCING AT MAGIC FAIR,
LAS VEGAS, USA
7-9
Sept, 2021
PURE LONDON (PURE ORIGIN)
2 / APPAREL EXPORT PROMOTION COUNCIL MAGAZINE | JULY 2021
APPAREL | CONTENTS
YR 21 | ISSUE 07 | JULY 2021 | Pages 60
01|CHAIRMAN’S MESSAGE 36 | INDIA NEWS
• Ministry of Textiles celebrates
YR 21 ISSUE 07
International Day of Yoga
02 | EVENTS CALENDAR • Soft launch of National Single Window
APPAREL EXPORT PROMOTION COUNCIL MAGAZINE I JULY 2021 100
System soon: Shri Piyush Goyal
• Only PAN, Aadhaar required for
FM HEARS APPAREL EXPORTERS’ WOES
04 | KEY STATISTICS MSME registration
• RMG exports up 114% in May • Startups recognized by DPIIT rise to
• Textile manufacturing picks up 50,000
• Aditya Birla Fashion posts 51% hike in
06 | UPFRONT Q4 EBIDTA
• GeM to provide greater market
AEPC’S RS 1.60 CR
PANDEMIC RELIEF TO TN access to MSEs
40 | GLOBAL NEWS
• H&M pairs with Japanese brand Toga
08 | GLIMPSES OF • LVMH partners with Canopy for
KEY EVENTS forest conservation initiative
• Prada takes initiatives for diversity,
equity, inclusion
10 | COVER STORY • H&M teams up with Brock collection
• MSMEs to play key role in India’s for womenswear
MSMEs TO DRIVE UNTRY
economic recovery • Grand Prix trophy to travel in Louis
FOCUS CO
EXPORT-LED GROWTH SOUTH AF
RICA Vuitton case
18 | SPECIAL FEATURE • Emilio Pucci unveils new collection
• Comfort and climate key for with Supreme
CHAIRMAN AEPC • H&M launches Higg Index
Dr A Sakthivel Winter Fashion 2021
Sustainability Profile
CHAIRMAN EP • Under Armour hikes minimum pay to
Mr Sudhir Sekhri 22 | FOCUS COUNTRY $15 an hour
• South Africa rebounding from • LVMH sets up employee support fund
Secretary General, AEPC
Dr LB Singhal
recession, to grow above 3% • H&M launches ‘Beyond the Rainbow’
campaign
ADVISOR AEPC
Mrs Chandrima Chatterjee 28 | COUNCIL AFFAIRS • PVH Corp posts 55% jump in Q1
revenue
• Solution to high yarn prices to • Daniela Ott joins Aura Blockchain
PUBLISHER
prevent supply chain imbalances Consortium
Apparel Export Promotion Council
• AEPC Chairman hails RBI’s • M&S partners with English Heritage
Apparel House, Sector-44,
decision to prop up industry
Institutional Area, Gurugram, • AEPC donates Rs 1.60 cr to Tamil
HARYANA – 122003. Nadu for pandemic relief 48 | ADVANTAGES OF AEPC
Phone: 0124-2708000
www.aepcindia.com
• AEPC initiates efforts to fill viscose MEMBERSHIP
fabric gap in India
• AEPC proposes separate export
policy for Tamil Nadu 50 | GST UPDATE
• Big potential for Indian apparels in
Polish market: Indian Diplomat
• FM’s package to protect lives, 52 | NOTIFICATIONS
Content & Design boost economy: Dr A Sakthivel
Vanman Communications Pvt Ltd • Talks with Darlington Fabrics to
Email: vanmancommunications@gmail.com make high-end knit fabrics
54 | CIRCULAR
Printing Press
Royal Press, New Delhi 60 | MEDIA COVERAGE
Email: royalpress2014@gmail.com
APPAREL EXPORT PROMOTION COUNCIL MAGAZINE | JULY 2021 /3
APPAREL | KEY STATISTICS
RMG EXPORTS
UP 114% IN MAY
India’s Ready-Made Garment
(RMG) Export Update for FY May, 2021-22
RMG exports were to the tune of USD 1106.7 million in May, 2021 showing a positive growth of
114.2 per cent against the corresponding month of May, 2020 and decline of -27.7 percent
against May, 2019.
In rupee terms, RMG exports were to the tune of INR 8108.5 crore in May, 2021 showing a
positive growth of 107.4 per cent against the corresponding month of May, 2020 and decline
of -23.9 percent against May, 2019.
India’s RMG Export to World
(In US$ Mn.) MoM Growth (%)
2019-20 2020-21 2021-22 2021-22
Month
2019-20 2020-21 2021-22 Over Over Over Over
2018-19 2019-20 2019-20 2020-21
April 1408.8 126.3 1297.3 4.2 -91.0 -7.9 927.1
May 1530.1 516.6 1106.7 14.2 -66.2 -27.7 114.2
June 1233.5 804.3 -9.2 -34.8
July 1365.8 1065.7 7.1 -22.0
August 1261.9 1085.6 -2.4 -14.0
Septem-
1080.6 1192.9 -2.2 10.4
ber
October 1108.9 1180.0 -2.1 6.4
November 1058.5 1047.0 -6.4 -1.1
December 1409.5 1196.9 2.4 -15.1
January 1453.5 1296.2 -4.9 -10.8
February 1477.9 1349.1 -4.4 -8.7
March 1120.5 1425.6 -34.8 27.2
Total 15509.4 12286.3 2404.0 -4.0 -20.8 -18.2 273.9
Source: DGCI&S, Kolkata, 2021
Note- MoM Growth Rate for the year 2021-22/2020-21 & 2021-22/2019-20 is
calculated for the period (Apr-May).
For more Details on India’s RMG Exports data, please visit AEPC’s website>Resource Section>Export
Statistics
4 / APPAREL EXPORT PROMOTION COUNCIL MAGAZINE | JULY 2021
APPAREL | KEY STATISTICS
TEXTILE MANUFACTURING
PICKS UP
India’s Textile & Ready Made Garment (RMG)
Update for Index for Industrial Production
(IIP) for FY April, 2021-22
MoM
MoM
Manufacture of Manufacture of Wear- Growth
Growth Rate
Textiles ing Apparel Rate
(In %)
(In %)
2021-
Month 2020-21 2021-22 2021-22/2020-21 2020-21 2021-22
22/2020-21
April 11.0 113.2 # 9.7 136.1 #
Source:CSO,2021
* Figures for Apr 2021 are Quick Estimates
# In view of explanation given in press release w.r.t April 2020, the indices for month
of April 2021 are not strictly comparable with April 2020
Manufacturing of Textiles
Index for the month of April, 2021
is 113.2.
Manufacturing of Wearing
Apparel Index for the month of
April, 2021 is 136.1
Manufacturing of Textiles for
the financial year Apr-March,
2020-21 is 90.7 which has shown
a decline of 21.6% as compared
to the financial year Apr-March,
2019-20.
Manufacturing of Wearing
Apparel for the financial
year Apr-March, 2020-21 is
108.0 which has shown a decline
of 29.8% as compared to the
financial year Apr-March,
2019-20.
APPAREL EXPORT PROMOTION COUNCIL MAGAZINE | JULY 2021 /5
APPAREL | UPFRONT
GEM TO PROVIDE
GREATER MARKET ACCESS
TO MSEs
G
overnment e-Marketplace (GeM) has geared up dous achievement, as there were around 3,000 MSMEs
to provide greater market access to seller groups in FY 2016-17,” said Mr Anup Wadhawan, Commerce
like MSEs, Women SHGs, Startups reinforcing Secretary.
the Make in India Initiative and Government of India’s Since its inception in August 2017, GeM has facilitated
policy to promote local Micro and Small Enterprises 67.27 lakh orders worth Rs 1,11,113 crores from 18.85
(MSEs). lakh registered sellers and service providers for 52,275
Hon’ble Minister of Commerce and Industry Shri government buyers. Most importantly, 6,95,432 MSE sell-
Piyush Goyal said, “GeM should not only evolve as ers and service providers have fulfilled 56.13 per cent of
One-Stop shop for the requirement of all Central and the total order value on GeM.
State Government offices as well as their PSUs, but MSME Ministry recently launched a new Udyam
also provide opportunities to MSMEs to showcase their Registration Scheme for all MSME businesses under the
products.” new MSME policy. The new Udyam form has a provision
Currently, GeM has over 6,90,000 MSE sellers and to take consent from businesses for auto-registration on
service providers onboard contributing over 56% of the GeM portal.
total order value on GeM. “The number of MSEs regis- In order to further smoothen the seller registration
tered on the GeM platform has increased by over 62% process for MSEs on the portal, GeM has made API inte-
since the last financial year (2019-20). This is a tremen- gration operational with Udyam Registration databases.
6 / APPAREL EXPORT PROMOTION COUNCIL MAGAZINE | JULY 2021
APPAREL | UPFRONT
Details of MSMEs, who have given their consent to share 2019. The ‘SAHAY’ initiative, a mobile application for
their details with GeM, are being auto imported on GeM lending – comparable to BHIM – for the Unified Pay-
for creation of their seller profile and notification. ments Interface (UPI), was launched to address these
Till 31 May 2021, as many as 18,75,427 vendors have issues.
been registered on GeM, out of which 6,98,178 were Through the ‘GeMSAHAY’ app, loan disbursement will
MSEs and the share of procurement from MSEs on the be instantaneous, instead of the conventional in-princi-
portal was about 57%. ple approval of loan that may very often not culminate
The GeM platform has ensured effective and seam- in an actual disbursal. This facility will provide GeM
less implementation of the Make in India policy and the sellers, who are sole proprietors, with the best loan
Public Procurement Policy for Preference to Micro and offers from top lenders in the country including public
Small Enterprises. sector banks, private banks and Non-Banking Financial
GeM is a dedicated platform for Startups to list their Companies (NBFCs).
innovative products under 10 globally recognized Start- GeM was the first e-commerce portal in the country,
up subsectors, which was launched on 15 November which had started displaying the “Country of Origin”
2019. At present, there are 9,980 Startups registered on of all products on the product description page promi-
GeM and 87 of these Startups have listed their innova- nently for giving its buyers the right to make informed
tive products on Startup Runway. decision of procurement.
To address the credit access challenges faced by It has also started highlighting the Local Content
MSMEs, a latest functionality named GeMSAHAY app is per cent on the product description page prominently.
also being rolled out especially for SMEs. The GeMSA- Sellers who do not declare Local Content per cent while
HAY initiative paves way for frictionless financing by uploading product and creating catalogue on GeM will
leveraging fintech. lose out on business and will not be able to participate
One of the major challenges faced by SMEs is access in bids in which buyer has chosen to procure only MII
to timely cash-flow based financing, since borrower compliant products.
assessment is typically being done on collaterals. Even GeM has been working closely with Ministry of Rural
though there are schemes like TReDS which facilitate Development, Ministry of Tribal Affairs, Ministry of Tex-
loans, SMEs continue to find it difficult to avail of uncol- tiles, Ministry of MSME, National Bamboo Mission, and
lateralized cash-based loans. Ministry of Agriculture to develop “GeM Outlet Stores”
These challenges had been reviewed and recommen- and provide online “access to markets” for under-served
dations were made towards resolving the same by RBI’s seller groups in remote rural areas.
UK Sinha MSME Committee through its report in June
APPAREL EXPORT PROMOTION COUNCIL MAGAZINE | JULY 2021 /7
APPAREL | GLIMPSES OF KEY EVENTS
GLIMPSES OF KEY EVENTS
AEPC Chairman Dr A Sakthivel at a meeting
with Hon’ble Finance Minister Smt Nirmala
Sitharaman at New Delhi on 30 June 2021.
The Chairman had a fruitful discussion on
issues concerning the apparel export sector
including RoSCTL, RoDTEP, MEIS, GST and
ECLGS.
Discussing issues and challenges related to
Dr A Sakthivel in a meeting with Commerce apparel exports with Textile Secretary Mr
Secretary Mr Anup Wadhawan at New Delhi Upendra Prasad Singh at New Delhi on 29
on 29 June 2021. June 2021.
8 / APPAREL EXPORT PROMOTION COUNCIL MAGAZINE | JULY 2021APPAREL | GLIMPSES OF KEY EVENTS
AEPC Chairman Dr A Sakthivel becomes the new President of Federation of Indian
Export Organisations (FIEO) on 28 June 2021.
Taking up issues of RoSL pending
cases and execution of bond for
import of labels, tags, etc. with
Central Board of Indirect Taxes
In conversation with Directorate General of Talking about export related policies and Customs (CBIC) Chairman
Foreign Trade (DGFT) Mr Amit Yadav on foreign with Niti Aayog CEO Mr Amitabh Mr Ajit Kumar at New Delhi on 30
trade matters at New Delhi on 29 June 2021. Kant at New Delhi on 30 June 2021. June 2021.
With Department of Commerce Joint Secretary
Ms Nidhi Mani Tripathi at New Delhi on 29 Apprising MSME Secretary Mr BB Swain on issues related
June 2021. to MSMEs in apparel sector at New Delhi on 29 June 2021.
APPAREL EXPORT PROMOTION COUNCIL MAGAZINE | JULY 2021 /9APPAREL | COVER STORY
MSMES TO PLAY
KEY ROLE IN
INDIA’S ECONOMIC
RECOVERY
As the world celebrated Micro, Small and Medium Enterprises Day
on 27 June 2021, Apparel India delved deep into the state of affairs,
impact of pandemic, measures taken, and reforms needed to get the
maximum out of the MSME sector, which is crucial for faster, inclusive
and sustainable economic recovery.
10 / APPAREL EXPORT PROMOTION COUNCIL MAGAZINE | JULY 2021APPAREL | COVER STORY
EXPORTING TO FASTER RECOVERING
REGIONS WILL LEAD INDIA OUT OF
ITS PANDEMIC-HIT SLOWDOWN TILL
DOMESTIC DEMAND GAINS STRENGTH.
AND, LEADING THE PACK OF EXPORTERS
WILL BE MSMES
APPAREL EXPORT PROMOTION COUNCIL
CHAIRMAN DR A SAKTHIVEL
T
he abbreviation ‘MSME’ sounds
familiar to all but many still fail to
fathom its significant contribution to
economic growth, employment and
social development. The 6.35 crore
MSMEs in India account for 30 per
cent of GDP, 48 per cent exports and
is the second largest employment
generator after agriculture employing more than 11
crore people.
Hon’ble Minister of MSMEs Shri Nitin Gadkari is work-
ing for the sector’s growth and has fixed an ambitious
target of increasing MSMEs contribution to 50 per cent
in GDP and 60 per cent in exports. The sector has all the
potential to increase the GDP to $5 trillion by 2025, as
planned by Hon’ble Prime Minister Shri Narendra Modi’s
government.
While Covid-19 pandemic crushed several MSMEs,
many could survive because of the timely intervention of
the government. Going forward, a lot will depend on the
continuity of policy support and enterprise of the MSMEs
themselves. With easing of lockdowns, MSMEs are slowly
getting back to normal, particularly in the apparel sector.
As things stand, what seemed as the most vulnerable
section in the economy, MSMEs will now lead India’s eco-
APPAREL EXPORT PROMOTION COUNCIL MAGAZINE | JULY 2021 / 11APPAREL | COVER STORY
nomic recovery even as the country tries to gain control be MSMEs,” said Apparel Export Promotion Council
over the second wave of the pandemic and prepares (AEPC) Chairman Dr A Sakthivel. “More than large
for the third. While the local economy may take time to companies, it will be the MSMEs that will lead the
recover, serving foreign markets is the only option at export-led growth. As exports need personalized man-
present. agement, which can only be given by the MSMEs, we
“Exporting to faster recovering regions will lead India expect the growth in exports will be largely driven by
out of its pandemic-hit slowdown till domestic demand the MSMEs rather than the large sector.”
gains strength. And, leading the pack of exporters will
FIGURES IN RS CRORES ADJUSTED FOR FISIM AT CURRENT PRICES:
Year Total MSME GVA Growth (%) Total GVA Share of MSME All India GDP Share of MSME
in GVA (%) in All India GDP
(in %)
2014-15 3658196 NA 11504279 31.8 12467959 29.34
2015-16 4059660 10.97 12574499 32.28 13771874 29.48
2016-17 4502129 10.9 13965200 32.24 15391669 29.25
2017-18 5086493 12.98 15513122 32.79 17098304 29.75
2018-19 5741765 12.88 17139962 33.35 18971237 30.27
Source: Central Statistics Office (CSO), Ministry of Statistics and Programme Implementation
THE NEW DEFINITION
To reflect the true picture of the sector, in 2020, the gov-
ernment overhauled the definition of these enterprises
in terms of investments and turnover. This amendment
was done after 14 years since the MSME Development
Act came into force in 2006.
New classifications:
(i) a micro enterprise is where investment in plant and
machinery or equipment does not exceed Rs 1 crore and
turnover does not exceed Rs 5 crore;
(ii) a small enterprise is where investment in plant and
machinery or equipment does not exceed Rs 10 crore
and turnover does not exceed Rs 50 crore; and
(iii) a medium enterprise is where investment in plant
and machinery or equipment does not exceed Rs 50
crore and turnover does not exceed Rs 250 crore.
The new classification, which does not differentiate
between manufacturing and services, came into effect
from 1 July 2020. It was also decided that the turnover
with respect to exports will not be counted in the limits
of turnover for any category of MSME units wheth-
er micro, small or medium. The change in criteria of
classifying the MSMEs is set to offer major relief to the
exporters. It will propel India’s exports and strength-
en the MSME sector. The MSMEs are widening their
domain across sectors of the economy, producing a
diverse range of products and services to meet demands
of domestic as well as global markets.
COVID-19 PANDEMIC IMPACT ON MSMEs
The pandemic has shaken the entire business eco-
12 / APPAREL EXPORT PROMOTION COUNCIL MAGAZINE | JULY 2021APPAREL | COVER STORY
system. National lockdown in 2020 and then partial According to Mr Sanjay Aggarwal, President, PHD
lockdown and restrictions during the second wave of the Chamber, the challenges like physical infrastructure
pandemic, has severely impacted the supply chain of the bottlenecks, constraints in technology adoption, high
sector. Be it supply of finished goods, procurement of logistic costs and lack of access to credit have been
raw material and availability of skilled or unskilled em- further compounded for the MSMEs due to the pandem-
ployees all got hit. There were challenges on all fronts - ic. However, a series of steps taken by the government
debt, repayments, wages/ salaries, and statutory dues. including measures under the Rs 20 lakh crore Aatm-
nirbhar package are helping MSMEs to come out from
According to an article of Dr Agyeya Tripathi, in The the woods. In fact, MSME exporters, particularly from
Times of India, survey reports have shown that disrup- the apparel sector, are showing great resilience and are
tions caused by the Covid-19 pandemic have impacted now recording healthy growth rates during the past few
MSMEs earnings by 20-50 per cent, micro and small months.
enterprises faced the maximum heat, mainly due to
liquidity crunch. There were no exact numbers, but sev- APPAREL AND MSME
eral of the units shut their factories, laid off workers to Most of the apparel industry players are in the MSME
deal with the crisis. However, certain innovators hedged sector, employing lakhs of workers. The sector has
their risk a bit by immediately entering in new areas helped in pushing the country’s textiles exports. Like
like making PPE kits, masks and gloves. any other segment, this too got impacted by the Covid-19
pandemic. The pandemic induced lockdowns worldwide
Exporters were not able to ship their finished goods severely impacted the sector. It lost orders worth bil-
or import raw material or intermediaries. Domestic lions of dollars, workers migrated back to their villages
movement of goods too were impacted. and cities, and factories got shut.
According to AEPC, most of the apparel exports are
season and fashion sensitive, and their salvage value be-
comes zero if the production and shipment are not done
in time. The apparel industry engages about 13 million
direct workers. While the sector has recovered to the
pre-Covid levels, many innovative players forayed into
the manufacturing of Personal Protective Equipment
(PPE) kits, gloves and masks during the first wave of the
pandemic. The AEPC pushed hard with the government
for opening exports of these goods. Now India is a key
player in this segment in the global markets.
EXPORTS AND MSME
The MSME segment is already contributing significantly
in the country’s overall exports, which hovers at around
$300 billion per year. Given greater support from the
government in areas like affordable and easy access to
credit, land, power and water at affordable rates, skilled
manpower, and availability of modern technologies
and machines would help the sector push the country’s
exports to next level.
Hon’ble Commerce and Industry Minister Shri Piyush
Goyal has stated that the exporting community should
look at taking the exports to $400 billion during 2021-
22. MSME can play a key role in achieving this target.
Hon’ble MSME Minister Shri Nitin Gadkari has said
that it is extremely important to raise MSMEs’ share
in exports. “For the quick revival of the MSME sector,
we now need special focus on boosting exports and
reducing overall costs. MSMEs need to adopt necessary
practices, too, and reduce power and logistics costs,” he
said. India’s export has already started showing signs of
revival, all thanks to MSMEs.
APPAREL EXPORT PROMOTION COUNCIL MAGAZINE | JULY 2021 / 13w
APPAREL | COVER STORY
STEPS BY CENTRAL GOVERNMENT ment. For enhancing credit to MSME entrepreneurs, the
AND RBI scheduled commercial banks were allowed to deduct
Immediately after announcing national lockdown in credit disbursed for new MSME borrowers from their
2020, the Union Government announced a Rs 21 lakh Net Demand and Time Liabilities (NDTL) for calculation
crore Aatmnirbhar Package to insulate the economy of Cash Reserve Ratio (CRR).
from the jolt of the pandemic. Recognising the role of Among the other financial support mechanisms, the
MSMEs, the package gave special focus to the sector. It government provisioned Rs 20,000 crore as subordinate
provided additional funding of up to Rs 3 lakh crore at a debt to provide equity support to MSMEs, and issued
concessional rate of 9.25 per cent through the Emer- guidelines regarding Self Reliant India (SRI) fund with
gency Credit Line Guarantee Scheme (ECLGS) for the Rs 10,000 crore corpus for leveraging equity infusion
MSME sector. of Rs 50,000 crore for the MSMEs. The government
Under ECLGS, 20% to 40% credit against outstanding also provided 5% Interest Equalisation Scheme on Pre
loans are available, with varying terms and conditions. and Post Shipment Rupee Export Credit for MSMEs
For apparel sector, 20% credit against outstanding loans as against 3% for non MSMEs. Further, benefits were
as on 29 February 2020 are available under ECLGS 1.0 extended to MSMEs on the Government e-Marketplace
(total credit outstanding up to Rs 50 crore) and ECLGS (GeM) portal, where the government bodies need to pro-
2.0 (Rs 50 crore and not exceeding Rs 500 crore). It cure 25 per cent of their requirements from MSMEs.
was the second biggest component of Rs 21 lakh crore On 4 June 2021, the RBI expanded eligible beneficia-
package announced by Hon’ble Finance Minister Smt ries under Resolution Framework 2.0 by enhancing the
Nirmala Sitharaman. maximum aggregate exposure threshold from Rs 25
It allowed re-opening of one-time restructuring for crore to Rs 50 crore for MSMEs. It also extended a spe-
individuals and MSMEs till 30 September 2021. For MS- cial liquidity facility of Rs 16,000 crore to Small Indus-
MEs restructured earlier, banks are allowed to review tries Development Bank of India (SIDBI) for refinancing
working capital sanctioned limits based on a reassess- to MSMEs.
14 / APPAREL EXPORT PROMOTION COUNCIL MAGAZINE | JULY 2021APPAREL | COVER STORY
SCHEMES FOR MSMEs:
1. Prime Minister’s Employment Generation Programme (PMEGP)
2. 2nd Loan for up-gradation of the existing PMEGP/ MUDRA units
3. Credit Guarantee Scheme for Micro & Small Enterprises (CGTMSE)
4. Credit Linked Capital Subsidy Component
5. Procurement and Marketing Support (PMS) scheme
6. International Cooperation (IC) Scheme
7. Micro & Small Enterprises Cluster Development Programme
8. Scheme of Fund for Regeneration of Traditional Industries (SFURTI)
9. A Scheme for Promotion of Innovation, Rural Industries and Entrepreneurship (ASPIRE)
10. ZED Certification Scheme
11. Lean Manufacturing Competitiveness for MSMEs
12. Design Clinic for Design Expertise to MSMEs
13. Digital MSME
14. Entrepreneurial and Managerial Development of SMEs through Incubators
15. Awareness on Intellectual Property Rights (IPR)
16. Entrepreneurship and Skill Development Programme
17. National SC-ST Hub
18. Assistance to Training Institutions (ATI) Scheme
19. Coir Industry Technology Upgradation Scheme
20. Skill Upgradation and Mahila Coir Yojana
21. Interest Subsidy Eligibility Certificate (ISEC)
22. Work-Shed Scheme for Khadi Artisans
23. Rojgar Yukt Gaon
24. Mahatma Gandhi Institute for Rural Industrialization (MGIRI)
25. Pottery Activity under Gramodyog Vikas Yojana (GVY) scheme
26. Beekeeping Activity under Gramodyog Vikas Yojana (GVY) Scheme
27. Agarbatti Making Project under Gramodyog Vikas Yojana (GVY) Scheme
28. Tool Rooms and Technical Institutions - A Component of Infrastructure Development & Capacity Building scheme
APPAREL EXPORT PROMOTION COUNCIL MAGAZINE | JULY 2021 / 15APPAREL | COVER STORY GIVING MSMEs AN EDGE While the coverage and tenure of the ECLGS have Although the government and the RBI take steps from been expanded, more flexibility is needed, particularly time to time for the sector, there are few things over for the apparel sector. These are: which a comprehensive view is needed. These are capital or credit availability at affordable rates, land at 1. The scheme may be made available for loans sanc- proper price, infrastructure to develop MSME clusters, tioned after 29 February 2020, to provide relief to units water and power. stressed by the second wave. The support measures provided by countries like 2. Currently, credit under Guaranteed Emergency Germany, France and Israel can be replicated in India Credit Line (GECL) is up to 20% of the borrower’s total so that they can use modern machines and technolog- outstanding credit up to Rs 500 crore. The limit of total ical tools like artificial intelligence, internet of things, outstanding may be removed, in line with the flexibili- machine learning, smart manufacturing and blockchain ty offered under ECLGS 3.0 and 4.0. However, the cap technology. on the additional credit under GECL can continue to On the export front, the Commerce Ministry needs to remain at Rs 100 crore. announce incentives in the forthcoming Foreign Trade 3. The scheme, which has been extended till 30 Septem- Policy to boost outbound shipments of MSMEs. Exports ber 2021, may be extended till the end of the year. from MSMEs, especially the apparel sector, would help 4. 40% of the borrower’s total outstanding credit may significantly in achieving the $400 billion export target also be extended to the Apparel sector instead of the in 2021-22 and the $5 trillion Indian economy by 2025. 20% limit presently available. 16 / APPAREL EXPORT PROMOTION COUNCIL MAGAZINE | JULY 2021
APPAREL | SPECIAL FEATURE
COMFORT AND CLIMATE KEY
FOR WINTER FASHION 2021
T
he pandemic has brought about a system- Think-tanks of the industry believe that the fashion
ic shift in several sectors and the fashion industry that saw a whole year of lockdown and another
industry may be one among them. With travel season’s shows taking place digitally is likely to open its
restrictions and work-from-home culture see- wardrobe with a sense of excitement.
ing a rise, the fashion sector did just get time to reshape
itself as it got enough time to breathe. Designers and With high hopes of reopening of the world, designers
global brands are already in the works for the winters from all over the world have been working to introduce
of 2021. a long list of collections. And, what makes the collec-
tion for the upcoming winter different is that there is a
Belgian fashion designer Raf Simons in a recent special emphasis on ‘comfort’.
conversation with Italian businesswoman and fashion
designer Miuccia Prada said, “Here is a feeling we all Long hours of working on the computer and taking on
have about wanting to be in the world again. We are in clients or attending classes have contributed to a shift
the mood for fashion. We are in the mood for sharing of pattern that has made people to keep comfort in the
with other people.” top of their priority list. This shift of pattern has intro-
18 / APPAREL EXPORT PROMOTION COUNCIL MAGAZINE | JULY 2021APPAREL | SPECIAL FEATURE
duced ‘comfort clothing’ and the newly developed trend
is believed to stay.
There is a general consensus that this year marks
the start of an era where comfort will have its place in
upper shelves when a cloth will be designed. This, in all
likelihood, will be reflected in the fashion for the coming
winter season.
Summarising all the working establishments and
happenings around designers and global cloth makers,
these are some of the apparels that are likely to be
trending in Winter 2021:
Cable-Knit Sweaters – Knitwear is believed to be among
the essentials and it is unthinkable to move ahead in
winter trend leaving it behind. Full cable-knit looks in
sweaters and lounge pants are likely to be in the winter
trend. without addition of a puffy jacket to it. Fluff jackets
will continue to be in trend as it is promising and at the
Faux-fur Clothes – Designers created a line that could same time adds to comfort level. However, there is likely
maintain a balance between the comfort of a sweat pant to be change in preferences of colours, it can be assured
and the glamour of a suit. Faux-fur clothes like the faux that puffy jackets still hold a strong position.
fur coat is a blend of luxury and comfort and will be
trending for the upcoming season of winter. This pattern Cloud Coats – The new beginning of fashion trend is
will also be seen in hand bags and hats. believed to be directional, moving on with comfort.
The cloud-like weight and efficiency of cloud coats
Puffy Jackets – No winter collection can be completed add weightage for the kind to be in the forecast. These
APPAREL EXPORT PROMOTION COUNCIL MAGAZINE | JULY 2021 / 19APPAREL | SPECIAL FEATURE lightweights would certainly be trending and adding to comfort of people around the world. Leatherwear – Leather has its own ability to block bliz- zards. Clothes like leather button-down shirts are likely to be seen in the winters of 2021. Velvet – As the world got time to breathe and think, it seems to have started re-introducing long-lost friends. Velvet clothing like long-sleeve coats will supposedly be seen in winters. Velvet leggings are another item that can be betted on as it is, by all means, comfortable as well as sensuous. Quilted texture – Clothes like jackets with quilted texture will likely be seen in the winters of 2021. With reopening of all the regular-routine works, rationality would follow and this classical texture that would add to the ‘luxe’ look would probably continue to attract craft-loving fashionistas. Lilac – The love of 90s and one’s love for colours cannot be left aside as this part of fashion closely symbolises royalty. This forecast of the lilac and lavender colour introduced with winter-wear is no surprise as they made a phenomenal impression in Milan and would be liked globally too. Over-sized(s) – Designers also believe oversized-wears to have enough potential to be in trend as consumers would likely be confident in completing their unfinished purposes that were left unattended in the midst of the pandemic. Head Scarf – Made popular by celebrities, the use of headscarves will see an increase this coming winter. One another reason for headscarves to be in the list of ‘most-probable(s) is that humanity has been introduced to an almost ‘new normal’ called face mask and who wouldn’t like a headscarf that could also play as a guard against virus when needed. A season whose format is being looked upon as a totally new version, will obviously see ample amount of precision. Many designers from all around the world be- lieve that colour will likely play a big role in the upcom- ing season of winter. Speculations have made designers to give special importance to colour of garments when working on their machines. The past two years have also helped in realising the importance and effects of fashion industry in context to the society. This period can be considered as a begin- ning of a new era where an individual would be well aware of his/ her fashion impact on the planet. Conse- quently, think-tanks of the fashion world are working in 20 / APPAREL EXPORT PROMOTION COUNCIL MAGAZINE | JULY 2021
APPAREL | SPECIAL FEATURE
the direction of cutting down carbon generated by the
fashion industry.
The upcoming fashion trends would not only work
towards fulfilling the comfort and demands of individual
but would also contribute in the wellness of the planet.
This would eventually be followed by consumer aware-
ness and the bi-relation would run accordingly.
Sustainability is a major concept that is being infused
consistently in the fashion industry. It is the realisation
about limited resources that have visibly started driving
the society towards rational and minimal approach. In
the post-Covid era, reuse, swap and rent are some terms
that would potentially come into play in the fashion
industry.
APPAREL EXPORT PROMOTION COUNCIL MAGAZINE | JULY 2021 / 21APPAREL | FOCUS COUNTRY SOUTH AFRICA REBOUNDING FROM RECESSION, TO GROW ABOVE 3% South Africa is likely to recover from its steepest decline of 7% last year, and grow by more than 3% in 2021, as per various forecasts. The World Bank sees South Africa growing by 3.5%, IMF predicts growth of 3.1% and SA Reserve Bank forecasts growth anywhere between 3% and 5%. 22 / APPAREL EXPORT PROMOTION COUNCIL MAGAZINE | JULY 2021
APPAREL | FOCUS COUNTRY APPAREL EXPORT PROMOTION COUNCIL MAGAZINE | JULY 2021 / 23
APPAREL | FOCUS COUNTRY
ECONOMIC INDICATORS-
Indicators Value
Real GDP (Purchasing Power Parity), 2019 est. $730.913 billion
GDP (official exchange rate), 2019 est. $350.032 billion
Real GDP (Per Capita), 2019 est. $12,482
Real GDP Growth Rate,2019 est. 0.06%
Inflation Rate, 2019 est. 4.1%
Exchange Rate- rand (ZAR) per US dollar, 2020 14.9575
mining (world’s largest produc-
er of platinum, gold, chromi-
um), automobile assembly, met-
Industries alworking, machinery, textiles,
iron and steel, chemicals, fertil-
izer, foodstuffs, commercial ship
repair
Source: The World Factbook-CIA
LOCATION- Southern Africa, at the southern tip of the continent of Africa
CLIMATE- mostly semiarid; subtropical along east coast; sunny days, cool nights
AGE STRUCTURE-0-14 years: 27.94% (male 7,894,742/female 7,883,266)
15-24 years: 16.8% (male 4,680,587/female 4,804,337)
25-54 years: 42.37% (male 12,099,441/female 11,825,193)
55-64 years: 6.8% (male 1,782,902/female 2,056,988)
65 years and over: 6.09% (male 1,443,956/female 1,992,205) (2020 est.)
SOUTH AFRICA’S APPAREL TRADE-
South Africa’s RMG Import from World and India
% Change
2018 2019 2020
2020/2019
South Africa’s RMG Import
1858.5 1862.6 1493.2 -19.8
from World, (USD Mn.)
South Africa’s RMG Import
86.1 91.2 62.8 -31.2
from India, (USD Mn.)
India’s Share in South Africa’s
4.6 4.9 4.2 -14.2
RMG import from world, %
Source: UN Comtrade, 2021
24 / APPAREL EXPORT PROMOTION COUNCIL MAGAZINE | JULY 2021APPAREL | FOCUS COUNTRY
The above table shows that South Africa’s RMG import from world were to the tune of USD 1493.2
mn. in 2020 showing a decline of 19.8% as compared to 2019. RMG import from India has re-
mained USD 62.8 mn. registering a decline of 31.2%. as compared to 2019. India’s % share in
South Africa’s RMG import from world has remained 4.2% in 2020.
TOP RMG SUPPLIER TO SOUTH AFRICA-
Top RMG Supplier to South Africa (Values in USD mn.)
Exporters 2020 % Share
S. No.
World 1493.2 100.0
1 China 732.3 49.0
2 Eswatini 160.7 10.8
3 Mauritius 106.9 7.2
4 Lesotho 102.0 6.8
5 Madagascar 78.3 5.2
6 Bangladesh 72.8 4.9
7 India 62.8 4.2
8 Viet Nam 27.7 1.9
9 Turkey 19.0 1.3
10 Cambodia 15.6 1.0
Source: UN Comtrade, 2021
The above table shows that China has remained a top supplier of RMG to South Africa with a %
share of 49.0% in 2020. India is the 7th largest supplier of RMG to South Africa with a % share of 4.2%.
Bangladesh, Viet Nam and Cambodia have a % share of 4.9%, 1.9% and 1.0%.
APPAREL EXPORT PROMOTION COUNCIL MAGAZINE | JULY 2021 / 25APPAREL | FOCUS COUNTRY
SOUTH AFRICA’S TOP 10 RMG PRODUCTS IMPORT FROM WORLD VS INDIA’S SHARE
South Africa’s Top 10 RMG Import from World vs India’s share
South Afri-
South Africa ca’s imports
India’s
Imports from from India,
Product label share in
S. Product world, Value in Value in
%
No. code 2020,USD mn. 2020,USD
mn.
RMG 1493.2 62.8 4.2
Sum 699.0 25.8 3.7
Men’s or boys’ trousers, bib
1 620342 and brace overalls, breeches 191.7 3.3 1.7
and shorts, of cotton
T-shirts, singlets and other
2 610910 122.9 13.0 10.6
vests of cotton
Women’s or girls’ trousers,
3 620462 bib and brace overalls, 112.3 0.8 0.7
breeches and shorts of cotton
Jerseys, pullovers, cardi-
4 611030 gans, waistcoats and similar 50.8 0.4 0.8
articles, of man-made fibres
T-shirts, singlets and other
5 610990 45.3 1.2 2.6
vests of textile materials
Men’s or boys’ shirts of
6 610510 38.0 3.3 8.6
cotton
Jerseys, pullovers, cardi-
7 611020 gans, waistcoats and similar 37.2 0.8 2.0
articles, of cotton
Men’s or boys’ shirts of
8 620520 36.7 2.9 7.8
cotton
Garments made up of felt or
nonwovens, whether or not
9 621010 32.7 0.2 0.6
impregnated, coated, covered
or laminated
Brassieres of all types of
10 621210 textile materials, whether or 31.3 0.0 0.0
not elasticated
Source: UN Comtrade,2021
The above table shows South Africa’s top 10 RMG products imported from world vis-à-vis from
India and India’s % share in those top 10 products. The top 10 products imported from world were to
the tune of USD 699.0 mn. in 2020 and import from India of these top 10 products were to the tune of
USD 25.8 mn. India has a % share of 3.7 % in France’s top 10 products import from world.
The top products imported by South Africa from world includes Men’s or boys’ trousers, bib and
brace overalls, breeches and shorts, of cotton, T-shirts, singlets and other vests of cotton, Women’s or
girls’ trousers, bib and brace overalls, breeches and shorts of cotton, Jerseys, pullovers, cardigans,
waistcoats and similar articles, of man-made fibres and T-shirts, singlets and other vests of textile
materials.
26 / APPAREL EXPORT PROMOTION COUNCIL MAGAZINE | JULY 2021APPAREL | FOCUS COUNTRY
SOUTH AFRICA’S TOP 10 RMG PRODUCTS IMPORT FROM INDIA
South Africa’s Top 10 RMG Products Import from India
South Africa’s
% Share Equivalent ad
Product label Import from India,
in 2020 valorem tariff
S. No. Product code USD mn. 2020 applied by
RMG 62.8 100 South Africa
(In %)
Sum of Top 10 37.1 59.2
T-shirts, singlets and other
1 610910 13 20.7 45
vests of cotton
Men’s or boys’ shirts of
2 610510 3.3 5.2 45
cotton
Men’s or boys’ trousers, bib
3 620342 and brace overalls, breeches 3.3 5.2 45
and shorts, of cotton
Babies’ garments and cloth-
4 611120 3.1 4.9 45
ing accessories of cotton
Women’s or girls’ dresses of
5 620442 3 4.9 45
cotton
Men’s or boys’ shirts of
6 620520 2.9 4.6 45
cotton
Women’s or girls’ dresses of
7 620443 2.6 4.1 45
synthetic fibres
Women’s or girls’ blouses,
8 620640 shirts and shirt-blouses of 2.3 3.7 45
man-made fibres
Women’s or girls’ blouses,
9 620630 shirts and shirt-blouses of 1.9 3 45
cotton
Women’s or girls’ briefs and
10 610821 1.8 2.8 45
panties of cotton
Source: UN Comtrade, 2021
The above table shows South Africa’s top 10 RMG products imported from India. South Africa’s
top 10 products imported from India were to the tune of USD 37.1 mn with a % share of 59.2 % in South
Africa’s total RMG import from India.
The top products imported by South Africa from India includes T-shirts, singlets and other vests of
cotton, Men’s or boys’ shirts of cotton, Men’s or boys’ trousers, bib and brace overalls, breeches and
shorts, of cotton, Babies’ garments and clothing accessories of cotton and Women’s or girls’ dresses
of cotton.
The tariff applied by South Africa on the above top 10 products imported from India is 45%.
APPAREL EXPORT PROMOTION COUNCIL MAGAZINE | JULY 2021 / 27APPAREL | COUNCIL AFFAIRS
SOLUTION TO HIGH
YARN PRICES TO
PREVENT SUPPLY
CHAIN IMBALANCES
W
elcoming the Textile Ministry’s intent to find spikes in cotton yarn prices which affects the prospects across
evidence of cartelization which is resulting in the value chain of Indian textiles. It cannot be accepted that
sudden spikes in cotton yarn prices, Apparel data to the same is not available. The time has come that
Export Promotion Council (AEPC) Chairman Dr A Sakthivel to benefit a few, the plenty cannot suffer. I am hopeful that
on 23 June 2021 said that a solution to the high prices especially in this statistical study some forensic details can
will prevent supply chain imbalances and protect lakhs of also be found by the Textile Commissioner’s office,” she said.
livelihood.
Dr Sakthivel, in a letter to the Hon’ble Textiles Minister,
“We are happy to note that the Textile Commissioner’s said that AEPC will fully cooperate for a third party study
office has been advised to find evidence of cartelization which with regard to the spikes in cotton yarn prices. He said
is resulting in these spikes and hurting the overall interest of that these steps will help in curbing the steep increase and
the industry. With Ministry’s support, such a study can set unpredictability in availability of cotton and yarn which is
precedents for a data driven management of the supply chain hampering the apparel industry’s order book planning and
imbalances,” Dr Sakthivel said. overall competitiveness of the entire value chain.
Earlier in the day, Hon’ble Textiles Minister Smt Smriti “Lot of powerloom units have closed. This step will help
Zubin Irani, while addressing the award function of The in saving the livelihood of a lot of workers in the powerloom
Cotton Textiles Export Promotion Council (TEXPROCIL), sector and apparel industry. As the sector is labour intensive,
said that the Ministry along with the Textile Commissioner’s employing over 13 million workers, largely migrant and
office seeks to find solution in partnership with the industry women workers, stability in the prices, in turn will stabilize
for the overall interest of the industry. the production and save livelihoods of the large number of
workers in this MSME dominated production and export
“There is a need to undertake a third party study of sudden units,” he said.
28 / APPAREL EXPORT PROMOTION COUNCIL MAGAZINE | JULY 2021APPAREL | COUNCIL AFFAIRS
AEPC CHAIRMAN
HAILS RBI’S
DECISION TO PROP
UP INDUSTRY
W
elcoming the RBI’s bi-monthly monetary policy for easier access to credit. The unchanged policy Repo Rate
review on 4 June 2021, Apparel Export Promotion at 4 per cent and Reverse Repo Rate at 3.35 per cent will also
Council (AEPC) Chairman Dr A Sakthivel said lead to a stable rate regime, he added.
that the pro industry measures will facilitate the industry to
bounce back from the impact of COVID. “Another major decision that will go a long way in
protecting the Indian economy is the widening of the eligible
“I would like to sincerely thank you for the timely beneficiaries under Resolution Framework 2.0 by enhancing
announcement of measures during the pandemic. As India is the maximum aggregate exposure threshold from Rs 25 crore
recovering from the dent caused by the second wave, which to Rs 50 crore for MSMEs. This will support the MSMEs,
has hampered the economic activities, I am confident that which are under stress and enable a larger set of borrowers to
the special measures announced by you today, as part of the avail the benefits,” he said.
monetary policy, will support the industry to come out of this
crisis,” Dr Sakthivel said. Thanking the RBI Governor for his statement about the
rebound in global trade to support India’s export sector, Dr
The Chairman also thanked RBI Governor Shri Sakthivel said, “I am confident that with the support of the
Shaktikanta Das for the special liquidity facility of Rs 16,000 government, industry will bounce back and will be able to
crore to SIDBI. Available at the prevailing policy Repo Rate capture the global demand.”
for a period of up to one year, this will support the MSMEs
APPAREL EXPORT PROMOTION COUNCIL MAGAZINE | JULY 2021 / 29APPAREL | COUNCIL AFFAIRS
AEPC DONATES
RS 1.60 CR TO
TAMIL NADU FOR
PANDEMIC RELIEF
A
pparel Export Promotion Council (AEPC) has made The Chairman thanked all the EC members for their
a contribution of Rs 1.60 crore to the Tamil Nadu contribution and special thanks to all the members of the
government for its fight against the coronavirus Council who contributed for this noble cause. Further,
pandemic in the state. he thanked the Hon’ble Chief Minister for his vision and
dynamic leadership.
The Council donated the first installment of Rs 30 lakh
towards the Chief Minister’s Public Relief Fund to Hon’ble “We would like to express our heartfelt gratitude for
Chief Minister of Tamil Nadu Shri MK Stalin during his visit choosing Tirupur as the first choice for inaugurating the
to Tirupur. vaccination program for over 18+ in Tamil Nadu. This makes
us feel that his aim is to protect micro, small and medium
Later, on 15 June 2021, AEPC Chairman Dr A Sakthivel enterprises and workers. I therefore request the Hon’ble CM
met the Hon’ble Chief Minister at the Secretariat in Chennai to expeditiously arrange for vaccines for the workers engaged
and handed over the contribution of AEPC members for an in this sector, especially women workers, to protect them
amount of Rs 1,30,37,001 towards the relief fund taking the from infection,” Dr Sakthivel said.
total to more than Rs 1.60 crore. AEPC Executive Committee
Member Mr Dollar P Balasubramaniam was also present The Chairman further said that from the day Shri Stalin
during the meeting. took over as the Chief Minister of Tamil Nadu, he has acted
swiftly with full commitment and with positive and excellent
AEPC Chairman assured the Hon’ble Chief Minister that planning to control the spread of the virus. As a result,
the Council will always support the Government of Tamil Covid-19 is gradually declining in the state. This is a positive
Nadu for all its coronavirus preventive activities and measures sign for the people of Tamil Nadu.
for the benefit of workers, and will also work together for the
state’s development.
30 / APPAREL EXPORT PROMOTION COUNCIL MAGAZINE | JULY 2021APPAREL | COUNCIL AFFAIRS
AEPC INITIATES
EFFORTS TO FILL
VISCOSE FABRIC GAP
IN INDIA
A
pparel Export Promotion Council (AEPC) on 22 June our basket.”
2021 held a webinar on sourcing of viscose fabric in
association with Birla Cellulose, part of Aditya Birla Speaking on the negative environmental impact of
Group, with an aim to fill the supply gap of viscose fabric in manufacturing viscose fabric and ways to mitigate it, Mr
India. Sudhir Sekhri, Chairman, Export Promotion Sub Committee,
AEPC, said, “Viscose is made by a very limited number of
Speaking at the webinar, AEPC Chairman Dr A Sakthivel producers. Ten producers make 80% of the world’s viscose.
said, “We need to increase domestic supply of quality viscose They tend to be clustered in China, Indonesia and India.
fabric at the right price for increasing our presence in Combination of brand pressure, regulatory enforcement and
manmade fibre (MMF) based garments. The government is supplier implementation can clean up viscose production
also bringing out Production Linked Incentive (PLI) scheme relatively quickly.”
for the MMF segment.”
Mr Dhruv Shah, Director, Shahlon Industries – Liva
Birla Cellulose, engaged in manmade cellulosic fibres Partner said, “We encourage exporters to ask for any specific
(MMCF), produces all types of viscose fabric and has a quality that they want us to manufacture in India at a cost
complete supply chain with more than 400 fabric suppliers effective price with yarn supply from Birla Cellulose. We have
that caters to the needs of the exporters and other brands, all the facilities in-house to help support the Make in India
said an official from the Aditya Birla Group. Grasim has campaign of our Prime Minister.”
taken several initiatives in the segment and introduced many
sustainable products, he added. Mr Dharmesh Patel, Director, Eagle Silk Mills, said, “We
are ready to serve all our garment exporters with new and
Mr PMS Uppal, Pee Empro Exports and AEPC Executive creative fabrics. We must target international branding of our
Committee Member, said, “Today, the customer looks at garments to promote it in the global market.”
the full bag comprising R&D, design, innovation, speed and
price. We need to give them a total package. The customer is
looking at 50 days from order to ship. We need to improve
APPAREL EXPORT PROMOTION COUNCIL MAGAZINE | JULY 2021 / 31APPAREL | COUNCIL AFFAIRS
AEPC PROPOSES
SEPARATE EXPORT
POLICY FOR
TAMIL NADU
A
EPC Chairman Dr A Sakthivel met Hon’ble Industry the state for MMF apparel manufacturing, sewing and heavy
Minister of Tamil Nadu Thiru Thangam Thennarasu textile machinery, and textile garment accessories. Moreover,
on 16 June 2021 and submitted his recommendations he recommended the setting up of these parks in southern
for the development of industries in Tamil Nadu and to districts of Tamil Nadu especially Madurai, Tuticorin and
increase exports from the state. Tirunelveli districts.
The Minister assured Dr Sakthivel of positively considering He further said that these parks should be set up under the
the proposals. He said that under the leadership of Hon’ble Central Government scheme of Mega Investment Textiles
Chief Minister of Tamil Nadu Thiru MK Stalin, the Park (MITRA) to enable the textile industry to become
government will extend all possible support to the industries globally competitive, attract large investment and boost
in the state. employment and exports.
Appreciating the positive approach of the Hon’ble Minister, He requested the Hon’ble Minister to make provision for
AEPC Chairman said, “We are fortunate to have him as housing and hostel facilities to both male and female workers
Industry Minister as his prudence and sagacity will help the in the industrial areas like Tirupur and nearby upcoming new
industries to flourish and the state will gain Numero Uno parks under the State Government schemes.
position pan India.”
The Chairman sought the Hon’ble Minister’s help in getting
The Chairman requested the Hon’ble Minister to create the Union Government expedite the construction of ESI
a separate Export Policy for the state of Tamil Nadu. The Hospital for workers at Tirupur, port infrastructure in Tamil
Minister assured of positively considering the proposal and Nadu, Coimbatore Airport and extension of Coimbatore
said the government may soon announce the Export Policy. Metro Rail Project to Tirupur for doubling exports from the
state within three years.
Dr Sakthivel also suggested establishment of new parks in
32 / APPAREL EXPORT PROMOTION COUNCIL MAGAZINE | JULY 2021APPAREL | COUNCIL AFFAIRS
BIG POTENTIAL FOR
INDIAN APPARELS IN
POLISH MARKET:
INDIAN DIPLOMAT
T
here is a massive potential for Indian apparel exporters can supply in a large way to the Polish supermarkets and
to increase their presence in the Polish supermarkets hypermarkets.”
and hypermarkets, said Mr SK Ray, Chargé d’Affaires,
Embassy of India to Poland (Warsaw) on 29 June 2021. AEPC Chairman Dr A Sakthivel said, “India is focusing
on high value and specialized products like MMF apparels,
Addressing a large gathering of Polish buyers and Indian medical textiles and technical textiles. Foreign investors can
apparel exporters at a virtual B2B meeting on ‘India-Poland set up a manufacturing base in India directly or through
Synergies in Apparel & Textiles’, jointly organized by Apparel JVs. Come and partner with us in building R&D, design,
Export Promotion Council (AEPC) and the Indian Embassy innovation and incubation centres in India. Foreign brands
in Poland, Mr Ray highlighted the significance of the textile can expand in Indian retail market also. Top brands like Zara,
sector in Poland. H&M, Mango, GAP, Marks & Spencer, Uniqlo and Calvin
Klein are already sourcing from India.”
Saying that Poland serves as a textile hub for export to
other European Union countries, Mr Ray said, “Indian Mr Sudhir Sekhri, Chairman, Export Promotion Sub
exporters should keep in mind that Polish consumers are Committee, AEPC, said, “Key advantages of buying from
not very brand loyal. They don’t stick to a particular brand. India or for Polish manufacturers setting up manufacturing
They often tend to switch brands and also they prefer to do base in India are lower labour cost, increased ease of doing
shopping in hypermarkets and supermarkets. Though price is business, stable economy and the slew of economic measures
a deciding factor, now they are more conscious about design, being taken up by the government – not only for sourcing but
quality and style. also as a manufacturing hub.
“Fashion and style are main factors and there is reduced “There are large manufacturing companies in India who
concern about the price tags. There is another growing trend have the potential to collaborate with Polish companies that
that the clothing has to be sustainable and ecofriendly. Indian wish to set up manufacturing bases in India. India also has
exporters should focus more on the latest textile technology the capability to execute smaller orders of any kind of fabric.
and research.” Besides, India has strong, innovative and creative design
capabilities which are amongst the best in the world.”
Further, the envoy said, “There is a huge potential for
enhancing our engagements in the textile sector. Poland
can serve as a major hub for textiles and Indian companies
APPAREL EXPORT PROMOTION COUNCIL MAGAZINE | JULY 2021 / 33You can also read
