Shri Narendra modi focus on Skill, Scale and Speed; finds synergy with the AEPC management
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Vol.02 Issue No.10, June 2014
RNI No. HARENG/2012/45083
Postal Regn. No.GRG/37/2012-2014
Shri Santosh Kumar Gangwar
Minister of State (Independent Charge) for Textiles
Shri Narendra Modi
Prime Minister of India
Smt. Nirmala Sitharaman
Commerce & Industry Minister
(Independent Charge)
Shri Narendra modi focus on Skill, Scale and
Speed; finds synergy with the AEPC Management
AEPC Participates in
SOURCING
MAGIC
at
Las Vegas, U.S.A.
Date: 17-20 August, 2014
Venue : Vegas Convention Centre, 3150 Paradise Road, 89109 Las Vegas, Nevada U.S.A
Participation Charges :
Sl.No. Particulars Participation charges (Rs.)
1 Participation charges of a 10' x 10' SQFT booth Rs 3,20,000/-
2 Early bird discount uptil 9th May, 2014
Rs 10,000/-
(If entire amount is paid)
3 Participation charges uptil 9th May, 2014 Rs. 3,10,000/-
3 Participation charges after 9th May, 2014 Rs. 3,20,000/-
Participation charges for additional booth with the same company name : Rs. 3,80,000/- (without MAI grant)
Women’s Wear Men’s Wear Kid’s Wear Fashion Accessories
For further details:
K. S. Bisht, Joint Director (F&E), Apparel Export Promotion Council
Apparel House, Sector - 44, Gurgaon Contact No. +91-124 270 8156, Mobile: +91 9810527747 E-mail: kbisht@aepcindia.com
APPAREL INDIA
Editorial advisory board
VIRENDER UPPAL
Chairman, AEPC
Sudhir Sekhri
Chairman
Export Promotion, AEPC
Puneet Kumar
Secretary General, AEPC
Sameer Pushp
Senior PRO, AEPC
Puneet Kumar
EDITOR
ANNOU IYER
EXECUTIVE EDITOR
Printed by TrendLAB Fashion Publishing Pvt. Ltd.
& Published by Apparel Export Promotion Council,
sponsored by Govt. of India, Ministry of Textiles.
Printed at Rakesh Press, A-22, Sector-68,
Noida-201 301, Uttar Pradesh, India and Published
at Apparel Export Promotion Council, Apparel House,
Sector 44, Gurgaon, Delhi NCR, India.
Editor: Puneet Kumar
Content & design
CIFF, Copenhagen Fashion Fair is one of the largest
Scandinavian fashion trade fairs that goes beyond the
traditional fashion fairs. A meeting point of international Registered Address: B-5, Anupam Plaza, Sri Aurobindo Marg,
buyers and retailers the fair houses multiple brands under Hauz Khas, New Delhi- 110016, India
one roof and provides the visitors an exceptional shopping
and trading experience. The latest edition of the fashion
Editorial & ADVERTISING queries:
fair is set to be organized from 3-6 Aug, 2014 at Bella
Center, Copenhagen, Denmark. This year the edition will M: +91 9899762388
run on Sunday too for the benefit of the local retailers and
buyers in the region.
E: apparelindia@trendlab.in
4 APPAREL INDIA
CONTENTS
06 Chairman’s Letter 34 Industry News
Message from Shri Virender Uppal News from the Global Market
08 AEPC INITIATIVES 42 AEPC EXPORT PERFORMANCE
Information on the most recent Apparel Export buoyant in April 2014
initiatives undertaken by AEPC
44 COUNTRY FOCUS
16 AEPC Pre-Budget Japan: India-Japan CEPA becoming catalyst
Pre-Budget proposal to the Member Budget, for increasing apparel exports from India
Central Board of Excise & Customs
50 Blueprint 2014
18 WTO UPDATES Salons & Fairs Review
• Yemen to become 160th WTO member
• Trade statistics show the least developed hit 52 MODAPRIMA
more severely by global slowdown Salons & Fairs Review
20 FASHION INTELLIGENCE 54 Heimtextil India
Article on Cost Control - It is time to go “Back Salons & Fairs Preview
to the Basics ‘Ask Yourself’
56 aePC NOTIFICATIONS
24 DISHA UPDATES Updates on Government Notifications
Views on Jaipur DISHA Cluster 2014
59 APPAREL INDIA
25 ATDC UPDATES Advertising & Subscription Details
ATDC as ‘Knowledge Partner’ for
World Skill Competition 2015
61 EVENT PLANNER
AEPC's Export Promotion Planner for the
26 RETAIL News 2014-15
News from the Retail Market in India
32 TEXTILE News
News from the Textile Industry in India
Published by
Apparel Export Promotion Council
Apparel House, Sector 44, Gurgaon, Delhi NCR, India
Tel: 91 124 2708000-03 Fax: 91 124 2708004-05 Website: www.aepcindia.com
Apparel India is a publication of the Apparel Export Promotion Council (AEPC). AEPC and APPAREL INDIA trademarks
are owned by AEPC. All rights reserved worldwide. The Council does not take any responsibility about the credit worthiness
or any other particulars of the firms featured in this monthly.
Reproduction in whole or in part without written permission is strictly prohibited. AEPC as well as TrendLab Fashion
Publishing Pvt Ltd. do not take responsibility for unsolicited material. Views expressed in Apparel India are not necessarily
those of AEPC and TrendLab Fashion Publishing Pvt Ltd.
Apparel India welcomes comments, suggestions or complaints if any. Email us, with your full name and address to
apparelindia@trendlab.in
APPAREL INDIA 5
Letter from
the Chairman APPAREL INDIA
Friends, you are aware that the Hon’ble Prime Minister
has entrusted the Ministry of Textiles to Shri Santosh
Kumar Gangwar and Ministry of Commerce & Industry
to Smt. Nirmla Sitharaman, both of whom carry the same
vision and commitment to boost garment exports from
India. AEPC's delegation recently met and congratulated
the new Ministers and briefed them about AEPC's role, as
an apex export promotion body for garments in India and
also highlighted the core issues of the Apparel Industry.
The issues bothering the industry were highlighted before
both of them.
You would be glad to know that India now stands second in
the global textiles exports. India's share in Global Textiles
has increased by 17.5% in the year 2013 compared to the
previous year. Currently India's Textiles Exports to the
world is US$ 40.2 billion. This growth is phenomenal as
the Global Textiles growth rate is only 4.7% compared to
India as it has registered the growth of 23% beating China
and Bangladesh in exports growth, which has registered
11.4% and 15.4%, respectively.
This growth in Global Textiles Exports from India is
largely attributed to the growth in the Apparel sector
which accounts for the almost 43% of the export of textiles
from India. Our ranking in global apparel exports has
also improved from 8th position in 2012 to 6th position
in 2013. Among the top five global clothing suppliers,
India's growth in apparel exports growth during 2013
was the highest at 21.8%, with only Vietnam registering
My dear fellow exporters, a higher growth. Apparel exports from India accounts for
3.7% of share in the Global export of Apparel.
Textiles and Clothing Industry, like everyone, is very
enthused on the occasion of Shri Narendra Modi, taking The council has also made its pre-budget submission to
over as Prime Minister of India, especially at a time the Member Budget in the Ministry of Finance and made
when Indian apparel industry needs a lot of support from a detailed presentation. This issue of Apparel India has
the Government of India. I firmly believe that under his the detailed account captured for the Member Exporters
visionary and legendary leadership, India would certainly to read. Under my Chairmanship a team of AEPC’s
scale new heights. In my letter written to Hon'ble PM, officials made the representation on Duty drawback to
I have also highlighted the role of AEPC, with 7000 Joint Secretary, Drawback. The Council pressed for the
member exporters across India, who have achieved an simplification of drawback schedule, its classifications,
export of US$ 14.94 billion in the year 2013-14 and have provide extra window for state and local levies, increase
a share of almost 43% of the country's textiles exports. the entitlement of Export Promotion Council from 3% to
I have also outlined our role in training huge number of 5% under EPC Scheme of Councils and drawback claimed
people through ATDC and IAM. I am confident that under should be made available under advance licence if any
his able leadership, AEPC would get due attention and of the inputs are used in export production are procured
shall be provided with conducive export policies so as domestically other than the imported inputs.
to achieve the export target of US$ 17 billion, set by the
Ministry of Textiles, Government of India for the year AEPC has asked for the removal of restriction which
2014-15. limits the import of sample fabric up to a maximum 500
6 APPAREL INDIA
Letter from
the Chairman APPAREL INDIA
meters, in one financial year, under the scheme of duty submission to the Government on the list of our demands.
free import of 3% Export Performance Certificate of
Ministry of Finance (under the EPC Schemes).The limit Under Skill Development - Apparel Training and Design
of 500 meters is absolutely insufficient for R&D and trial Centre (ATDC) is doing a wonderful job and has grown
runs. The limit was 200 meters during 2002 and was later in scope and reach. ATDC which commenced operations
increased to 500 meters during year 2003. We are hopeful in December 1995, has today 195 shop-floor training
that Ministry of Textiles would support us and our case centers, over 23 States, covering 32 centres in South India
would be considered for upward revision. (major clusters Chennai, Tirupur, Dharampuri, Perampuri,
Paramakudi, Erode, Salem,), 39 in North (Gurgaon, Delhi,
As part of the Export Promotion activities for 2014-15, Faridabad, Noida, Jaipur and Ludhiana), 33 in East
Council shall be facilitating direct marketing of garments (Kolkata, Bhubaneshwar, Ranchi, Patna, Imphal) and rest
and has planned multiple fairs in markets across the world in West (Mumbai, Indore, Surat, Raipur, Nagpur, Bhopal).
viz, USA, Japan, Hong Kong, Germany, Netherlands, ATDC has trained 1,17,958 workers so far. Institute
Australia, Spain, France, Brazil, Uruguay and Chile. It is of Apparel Management, Gurgaon is in operation for
also ready with plans to hold important international fairs higher education since Aug 2007 and has rolled-out 317
and events such as India International Garment Fairs, professionals till date.
Tex-Trends India, India Market Days, India Knit Fair and
Source Zone in India. I request all members to take full Friends, despite the slow recovery in USA and EU, our
advantage of these opportunities and participate in huge biggest traditional markets, and a slowdown in non-
numbers. traditional markets coupled with sustained cost of
inflationary inputs, our Industry has done very well for itself
Last month I, along with Secretary Textiles, was in and is actually itching to do more. Increase in labour costs
Tirupur for the inauguration of Knitwear Technology in China and non-compliance of large number of factories
Mission. The KTM Centre was inaugurated by Smt. in Bangladesh have provided India a big opportunity to
Zohra Chatterji, IAS, Secretary, Ministry of Textiles, fill up the void created by these happenings. A small push
Government of India on 6th May 2014. The 38th edition from the Government will help India get more business as
of India Knit Fair, featuring Spring-Summer Collection Buyers are looking towards India as a safe and reliable
2015, organized by Apparel Export Promotion Council option for the Sourcing. New Government at the center
in collaboration with Tirupur Exporters' Association has ignited hope and expectations among all of us. Lets
under the umbrella of India Knit Fair Association, was together make India the top most destination for garment
also inaugurated by Secretary Textiles Tirupur on from sourcing in the world.
7th May, 2014 in presence of Dr. A Sakthivel, Chairman-
IKFA-KTM and Shri Puneet Kumar, Secretary General,
AEPC. On the sidelines of the Fair, an Exporters Meet Virender Uppal
was also organised to get the inputs from the Industry for Chairman AEPC
APPAREL INDIA 7
AEPC Initiatives
AEPC welcomes new Textiles Minister Shri
Santosh Kumar Gangwar
Profile of the Textile Minister
Shri Santosh Kumar Gangwar is the new
Minister of State (independent charge) for
Ministry of Textiles and also Minister of State
for Parliamentary affairs, Water resources,
River Development and Ganga rejuvenation.
(born 1 November 1948) is a Member of
Parliament (16th Lok Sabha), former
minister of state in Government of India and
a leader of Bharatiya Janata Party (BJP).
He has been Member of Parliament for the
city of Bareilly since 1989 till date (except
2009-2014). He was also the chief whip of Shri Santosh Kumar Gangwar
the party in 14th Lok Sabha. Shri Virender Uppal, Chairman AEPC, congratulates
Shri Gangwar is associated with social work Prime Minister Shri Narendra Modi and his team of
Ministers
and active politics for over three decades.
He served as a member of the Uttar Pradesh Shri Virender Uppal, Chairman AEPC, congratulates Prime
State BJP Working Committee and held the Minister, Shri Narendra Modi and New Textiles Ministers Shri
Santosh Kumar Gangwar and Commerce & Industry Minister
position of General Secretary of the Uttar
Smt. Nirmala Sitharaman.
Pradesh BJP Unit in 1996.
He was Minister of State for Petroleum
and Natural Gas with additional charge of
Parliament Affairs in 13th Lok Sabha. Prior
to this, Shri Gangwar was Minister of State
of Science and Technology with additional
charge of Parliamentary Affairs during
October and November 1999.
Currently, Shri Gangwar is Member of
Parliament in 16th Lok Sabha. On 26
May 2014, Shri Gangwar has taken the
Oath for MoS Cabinet in Narendra Modi's
Government.
He is survived by one son and one daughter.
Shri Virender Uppal, Chairman AEPC
8 APPAREL INDIA
Initiatives AEPC
Shri Uppal, in his letter to Shri Modi, extended his warm with blueprint for the textiles industry.” Shri Gangwar was
wishes and hoped that India will progress under his regime. briefed by the senior officers of the Ministry about the
The new Government under his leadership has ignited hope issues and developments in the textiles sector.
and expectations that the aspirations of the Industry will be
duly met to boost the garment exports from India.
Shri Uppal expressed his happiness, over Shri Santosh
Kumar Gangwar to be entrusted with the Textiles Minister
responsibility and stated that, “Please accept my heartiest
congratulations on your assumption of the office of the Textiles
Minister of India. I hope that the new Government under
your able leadership will further advance and strengthen
the garment export sector, to which India attaches high
importance because of the highest employment potential and
power to accelerate manufacturing.”
Shri Sudhir Sekhri, Chairman Export Promotion also
congratulated the Textiles Minister. In his message he said, “It
gives me great pleasure to extend my warmest congratulations
to you on your appointment as Textiles Minister of the
Republic of India. The beginning of this new phase in Indian
politics and the start of work by your government come at a
crucial time when this industry needs the support. I am also
certain that I can rely on your commitment to carry on the
process of necessary reforms so that together the government Smt. Nirmala Sitharaman
and AEPC are able to cope with the challenges posed by the
crisis of global slowdown for restoring growth and jobs for Nirmala Sitharaman Assumes Charge as MOS
millions of Indians.” (Independent Charge) Commerce and Industry
Soon after the allocation of the Ministries, Shri Virender
Uppal took a delegation of AEPC and met the New Textiles Smt. Nirmala Sitharaman after assuming her charge as
and Commerce Minister and handed them the list of AEPC Minister of State (Independent Charge) Commerce and
demands. Chairman also briefed the two Ministers about Industry, spoke to media persons.
AEPC and the work it does for boosting the garment exports Speaking to the media after taking charge, Smt. Sitharaman
from India. said that “there are lots of things happening in this
Department which should be taken forward with greater
Shri Santosh Gangwar, soon after assuming charge as enthusiasm given the impetus with which the Prime Minister
MoS (Independent Charge) Ministry of Textiles, spoke Shri Narendra Modi would like the Department to function.”
to media She added that she feels “very humbled” to have been given
the responsibility. She emphasized that she “will give best
Shri Santosh Kumar Gangwar after assuming charge as of my time” to improve economic and commercial ties with
Minister of State (Independent Charge) in the Ministry India’s trading partners. Smt. Sitharaman said that she
of Textiles, spoke to media. Shri Gangwar said that the will work to “improve on Indian exports, and ensure that
textiles sector has a huge potential of providing large job opportunities emerge because that’s a very important
number of jobs to the vulnerable section of the society. plank on which we have contested the recent elections. The
Specifically speaking on the issues plaguing the sector in economic situation in this country demands that more jobs
Uttar Pradesh, he said that local artisans need the push be provided for the young, talented, well-educated and even
that will unlock the strengths of the region. “Zari Zardozi, the semi-skilled and unskilled people of India.” On the issue
carpet and many other local crafts have huge export of Foreign Direct Investment (FDI), she said that there will
potential and if proper attention is paid this can be a strong not be a “blanket approach” for every sector, and that each
source of improvement of economy and employment.” and every sector would be looked in a “very, very calibrated
Commenting on the Manjha industry of Bareilly, Shri fashion”. On FDI in multi-brand retail, she said that is “not
Gangwar said that “due to wrong policies, the Manjha best opened up now because the way in which medium and
industry has suffered and China has benefitted from the small sized traders or small farmers have not been adequately
situation. Ten thousand people were rendered jobless.” empowered… that immediately if you open up the floodgates
He also added that “we will not take long in coming out of FDI in multi-brand retail, it may affect them.”
APPAREL INDIA 9
AEPC Initiatives
38th India Knit Fair inaugurated at
Tirupur
The 38th edition of India Knit Fair featuring Spring-Summer Collection 2015
organized by Apparel Export Promotion Council (Sponsored by Ministry of Textiles,
Govt. of India) in collaboration with Tirupur Exporters’ Association under the
umbrella of India Knit Fair Association was held at IKFA Complex, Tirupur from
7th – 9th May, 2014...
Smt. Zohra Chatterji inaugurates the 38th India Knit fair in the presence of Dr. A. Sakthivel, Chairman-IKFA-KTM; Shri Puneet Kumar,
Secretary General AEPC and Shri P.N. Prasad, General Manager General Manager, Mid- Corporate Group, SBI
The India Knit Fair was inaugurated by Smt. Zohra Chatterji, the year business. She also said an integrated framework for
IAS., Secretary, Ministry of Textiles, Govt. of India, in the training (based on the need) has been formulated to address the
presence of Shri Virender Uppal, Chairman, Apparel Export trained manpower requirements of textiles and related segments
Promotion Council; Dr. A Sakthivel, Chairman-IKFA-KTM; Shri and the ministry proposed to operate projects in the 12th Plan
Puneet Kumar, IAS.; Secretary General, AEPC; Shri PN Prasad with an outlay of Rs.1,900 crores, with a target to train 15 lakhs
General Manager; Mid-corporate Group, SBI. The Executive persons by 2017. Dr. A Sakthivel, Chairman-IKFA & KTM in
Committee Members of Tirupur Exporters’ Association, Leading his briefing to the press, he has pointed out that India Knit Fair
Trade Members, Officials of State Bank of India, Office bearers has assumed its significance in world trade, as the platform to
of IKFA (India Knit Fair Association), Exhibitors, Exporters and service Fashion Knitwear from India. He also expressed that
Overseas buyers were among others who graced the occasion. there is a good demand for manmade/synthetic yarn products and
Smt. Zohra Chatterji, Secretary Textiles, congratulated the invited the Tirupur industry to make use of Knitwear Technology
garment sector for its contribution to the textile industry. She Mission, a project set up by AEPC which was inaugurated prior to
said that garment sector, being at the top end of the textile sector India Knit Fair by Smt. Zohra Chatterji, IAS Secretary General,
contributes nearly 50% of the total export of textile products from GOI. He added that if the situation continues with forging new
our Country. While addressing the press and media, the Textile markets, the growth would double in the next three years and
Secretary told that the textile ministry will soon come out with the export from Tirupur hub can reach Rs. 36,000 crores from
a hire purchase scheme for machinery under Technology Up- the present Rs. 18,000 crores. He has appealed to the Ministry
gradation Fund Scheme (TUFS). She lauded the new technologies for its support to achieve the goal and fulfill the expectation of
adapted by the Tirupur based manufactures. She also appreciated exporters on various policies and subsidies. Shri Virendra Uppal,
the efforts taken by AEPC for skill development and initiatives Chairman, AEPC and Shri Puneet Kumar, Secretary of AEPC
taken for developing manmade fibre garments to have round and various officials took part in the meeting.
10 APPAREL INDIAInitiatives AEPC
Smt. Zohra Chatterji giving insights on the new Hire-Purchase Scheme-TUFS at the AEPC-KTM and Exporters Meet
Profile of exhibits sleeping bags and garment dyed categories, 3D effects prints,
An array of apparel categories for the 2015 season were sublimation prints, natural dyes, and value added apparels
showcased by the exhibitors which include men, women, were also displayed. A stall put up by Knitwear Technology
and children wears, knitted fleece garments, full sleeve knits, Mission of AEPC showcased specialty fabrics and innovative
sportswear, work wear, leisure wear, night wear and many more apparels especially made from manmade fibres like polyster,
for all age groups. Knitted high fashion apparels with brilliant nylon etc., through warp knits for sportswear, swim wear and
shades, cold pigment and digital prints, crack printed, plated alike. Special finished garments like wicking finish, acid
jersey, performance sportswear garments with wicking finish, wash, stone wash, silicon wash, flame retardant, anti-microbial
terry knit, linen based, nappy look, camouflage prints and air finish were the displayed highlights in the fair. A total of 56
vortex yarn garments attracted the buyers. Double faced, stencil leading Exporters from Tirupur, Chennai, Coimbatore, Kolkata,
spray designs; 100% bamboo, linen, wool, flat knits, acrylic, Mumbai, New Delhi Bhopal, Gujarat, Haryana (Palwal) had put
modal, warp knit garments, swim wear, tennis wear, children’s up their stalls in the fair.
Smt. Zohra Chatterji addressing the media with Shri Dr. A Sakthivel, Chairman-IKFA-KTM; Shri Puneet Kumar, Secretary General AEPC
APPAREL INDIA 11AEPC Initiatives
Models showcasing the exclusive Spring/Summer collections presented by the participants at the 38th India Knit Fair
Fashion Show Visited Buyers
Models walked on the ramp with collections the Spring/ Buyers/Buying Agents were satisfied with the good quality
Summer collections during the Fashion Show organized on 6-8 design and collections displayed in the Fair. A contingent of
May 2014. Stall awards were distributed to the outstanding Buyers from Belgium, Honduras (South America), USA, Spain,
exhibitors. Hong Kong, Valencia, Tokyo (Japan), Israel, Uruguay (South
Shri Santhanagopalan, AGM, State Bank of India, Tirupur and America), Panama, Dubai (UAE), London (UK), Canada,
Shri K. Vasanthkumar, Co-ordinator, IKFA were presented Best Australia, Italy, Spain, France have visited the fair and are
Exhibitor Awards and appreciation certificates to the following keen on increasing their sourcing of Knitwear from India. Buyers
exhibitors on behalf of India Knit Fair Association. from Uruguay, Israel, Japan, Honduras visited the fair for the
first time and expressed satisfaction on the collections on display
M/S. Eastman Exports Global Clothing (P) Ltd, Tirupur and doing business with India. In total, 48 Buyers from different
Best Exhibit countries and 105 Buying Houses /Agents visited the Fair. On
interaction with the participants, it seemed good numbers of
M/S. Eureka Clothing Company:
enquiries were received in this fair. Some participants have also
First Runner-Up
booked spot orders. Overall, it is expected that total business
M/S. Clifton Export Private Limited generated through this fair will be to the tune of around Rs. 300
Second Runner-Up crores. IKFA gratefully acknowledge the active participation of
exhibitors, interest shown by the buyers and all stakeholders.
M/S. Bhaskar Denim, Bhopal:
This three day event ended with good business generation.
Consolation Certificate
AEPC to organize Buyer-Seller meet in Spain
Apparel Export Promotion Council has been organizing Buyer Seller Meet in Spain since
the year 2008. Based on the excellent response received during previous BSM’s Apparel
Export Promotion Council has decided to organize Buyer-Seller Meet in Spain again in
September 2014...
Spain has been a very attractive market for Indian Apparel. ensembles, jackets, dresses, blouses, shawls, scarves, mufflers,
Main items of export to Spain are– T-Shirts, singlets, ladies suits, underpants, infant wear and clothing accessories etc. India exports
12 APPAREL INDIAInitiatives AEPC
garments of worth US$ 595 million to Spain, which accounts for Venue Date Days
4.1% share in Spain’s total garment imports of US$ 14304 million Catalonia Barcelona
Set-up Day:- 3rd
and has tremendous export potential. Plaza September, 2014 (Wednesday)
Plaza Espana, 6-8 BSM Days:- 4 – 5 (Thursday / Friday)
AEPC 08014 Barcelona September, 2014
organizes HOTEL MELIA
AVENIDA DE
Buyer-Seller meet AMERICA
Set-up Day:- 7th
September, 2014 (Sunday)
(Monday/ Tuesday)
BSM Days:- 8 – 9
in Spain C/ Juan Ignacio Luca
de Tena 36 September, 2014
28027 Madrid
Schedule A dedicated Website will be launched for online registration
The Buyer Seller Meet has been arranged at Barcelona and of the buyers and the exhibitors company profiles will also
Madrid on the following dates. be uploaded on the website of the BSM.
India ranks second in Global Textiles
Exports: Chairman Aepc
India has improved its ranking as per the recent data released by ‘UN Comtrade’
in Global Textiles as well as Apparel Exports. In Global Textiles Exports, India now
stands at second position beating its competitors like Italy, Germany and Bangladesh,
with China still retaining its top position...
Shri Virender Uppal, Chairman AEPC, expressed his happiness over Chairman AEPC while lauding the efforts of the Apparel exporters,
this impressive growth and stated that, “Despite having slow recovery conveyed his concerns also that while the industry is actually itching
in USA and EU, our biggest traditional markets as well as prevailing to do more, stressed that, “The availability of speciality fabric is a big
global slowdown coupled with sustained cost of inflationary inputs, bottleneck for which AEPC has been aggressively demanding 5% duty
we made the best possible efforts to reach here. Government policy of scrip for the imports of fabrics. It must be considered favourably by the
diversification of market and product base has helped us and we ventured new government to boost India’s Apparel exports. Garment exporters
into the newer markets, which paid huge dividends. We also leveraged may be permitted to import it with 5% duty scrip on the input, so as to
our raw material strengths and followed sustained better compliance increase exports and optimally use to the fullest extent our potential.
practices which attracted the buyers and international brands across The rising interest rate is another issue which hampers growth for
the globe to source from India. India’s share in Global Textiles has which AEPC once again has put in its request to the Government for a
increased by 17.5% in the year 2013 compared to the previous year. Separate chapter for pre and post shipment export credit at fixed rate of
Currently India’s Textiles Exports to the world is US$ 40.2 billion. This 7.0% interest, as was done in the past also to the apparel export sector
growth is phenomenal as the global Textiles growth rate is only 4.7% and treat Readymade Garment as the priority sector lending. As the
compared to India as it has registered the growth of 23% beating China Government is contemplating new Union Budget and Foreign Trade
and Bangladesh which has registered 11.4% and 15.4%, respectively. policy, I earnestly request the government to concede these two demands
Total Global Textiles Exports is to the tune of US$ 772 billion with India of RMG sector utmost priority. Increasing labour cost in China, non-
commanding 5.2% of the share. This growth in the increase in share of compliance of large number of factories in Bangladesh provide India a
the Textiles Exports from India is largely attributed to the growth in the big opportunity in view of its relative advantage, risk appetite of Indian
Apparel and Clothing sector as it accounts for almost 43% of the share entrepreneurs and a small push from the government may help India to
alone. The Apparel Exports ranking has also improved from 8th position get more business as overseas buyers are looking at India as safe and
in 2012 to 6th position in 2013. India’s Apparel exports was to the reliable option for sourcing. But to capture the space in market left by
tune of US$ 15.7 billion in 2013, as against US$ 12.9 billion in 2012. China and Bangladesh, we have to be competitive in pricing, apart from
Among the top five global clothing suppliers except for the Vietnam; meeting strict timelines, better quality delivery by Indian exporters and
India’s Apparel exports growth was highest registering 21.8% growth therefore, government agencies active support is very crucial. AEPC is
during the year 2013. Apparel Exports from India accounts for 3.7% of pushing in this direction to seek export friendly enabling environment
share in the Global Readymade Garment Exports. Shri Virender Uppal, from the government, Shri Uppal added.
APPAREL INDIA 13AEPC Initiatives
Source Zone Fabric & Accessories Fair
After the success of Source Zone in 2010, 2011 and 2012, Apparel Export Promotion Council is
organizing the 5th Edition of Source Zone from 12th-14th November, 2014 at Apparel House,
Sector – 44, Institutional Area, Gurgaon – 122003, Haryana.
Source Zone offers apparel exporters a great opportunity to source their requirements for
fabrics, laces, trims, embellishments and accessories under one roof. Leading domestic suppliers
from across India and international suppliers will exhibit at this Show. The buzz for Source
Zone is created within India and abroad through excessive marketing campaign...
12-14 November 2014
Apparel House, Gurgaon
Over the years, the show has generated positive response and high accessories and services (ready-made garment
satisfaction levels amongst both suppliers and buyers. The varied manufacturers/ exporters)
product-mix, coupled with innovative products, has been a much One to one interaction with the biggest garment
appreciated factor by buyers & suppliers. Last edition saw 913 manufacturers and exporters
buyers and buying agents Levis, Bharti Wal-Mart, Li&Fung, Triburg, The only International show in India for manufacturers
Reliance Trends, Benetton, Impulse, M & S to name a few. and suppliers of fabric, accessories and services
organized by AEPC.
Fabrics More than 7000 members of AEPC are potential buyers
of Fabrics, Accessories and Trims.
Fabrics of viscose, velvet, georgette, cotton, silk, embroidered, ploy/ US$ 40 billion garment industry of export and domestic
cotton blend, Terry toweling fabric, Wrap knitted fabric, Lycra blend, source fabrics, accessories and trims for manufacturing
100% linen in yarn dyed and printed fabric, in woven and knits for garments.
men’s, women’s and kid’s wear. Price of the stall has been reduced to benefit SME's
Airfare reimbursement for exhibitors participating from
Trimmings & Embellishments outside Delhi and NCR.
Best Display Awards for Fabric & Accessories.
Schiffli embroidery, crochet laces, heat transfers sticker, panty Help Desk for administrative support
hose, socks, logos, jewellery, metal trims, draw cords, raw cords, Personalized escort for important visitors.
wadding.
Business Potential
Services
India consumes fabrics worth US$ 12 billion annually.
Suppliers of CAD/CAM systems and software; design studios; India consumes accessories worth US$ 3 billion each year
testing and QC; consultants; logistics and trade media, fashion India has over 50,000 apparel manufacturing units
publications etc.
Who Must Participate
Highlights
Manufacturers and exporters of Fabrics (natural and man-made)
Opportunity for buyers to analyze the widest spectrum of existing as well as manufacturers/ exporters of accessories for apparel
and emerging products and services at the best rates and supplier of services related to the textile and apparel industry
Provides access to more than 10,000 buyers of fabric, must participate in the Source Zone Fair.
14 APPAREL INDIAInitiatives AEPC
Benefits to Exhibitors
Enhancing and revitalizing one’s brand & network
Exploring and tapping global markets and trends, interact and
trade with thousands of top buyers/decision takers at one place
Focused market strategy for better business conversion
Grab bulk orders at competitive rates
Finalize long term contracts and credit policies
Network and establish one-on-one contact with India's top exporters
Maintaining customer relationships and meeting with prospects
Benefits to Visiting Buyers Local and international retail chains
Departmental stores
Opportunity to analyze and choose from a wide spectrum of Apparel brands
existing and emerging products and services at one place Fashion designers and merchandisers
Top executives and decision makers of supplying firms at a Design studios
common platform Fashion Institutes
Analyze prevailing rates in the market Trade body representatives
Finalize bulk requirements Trade media
Negotiate best rates for bulk orders
Utilize the negotiated rates to reduce manufacturing costs and Aggressive marketing for this event is being done by AEPC.
thereby remain competitive in global market Council expect leading buying agents, buyers, local & domestic
brand owners and exporters to attend.
Target Buyers The success of this event hinges as much on the profile of the
exhibitors as it does on the profile of the visitors attending. This
Fabric importers, distributors and wholesalers show is being organized for trade visitors only, AEPC will enable
Garment exporters and manufacturers companies to interact and conduct business in a conducive and
Buying houses and Buying agents facilitative environment.
APPAREL INDIA 15AEPC Pre-Budget
AEPC submits its Pre-Budget proposal
to the Member Budget, Central Board of
Excise & Customs
A presentation was made by the AEPC before Shri Kaushal Srivastava (Member) Budget, CBEC wherein
detailed proposal including suggestions/recommendations with respect to the Tax Issues in Apparel Export
Sector was submitted. AEPC team was led by, Shri HKL Magu, Chairman (F & B), Shri Puneet Kumar,
Secretary General and Shri Vijay Mathur, ASG AEPC...
RMG export sector contributes 4.8% share in the India's all commodity
exports and ranks 7th in foreign exchange earnings for India in FY
2013-14; predominantly comprising of SMEs which is critical for the
job creation and spurring manufacturing in India. RMG sector is the
largest employment provider in manufacturing sector. As per 12th
Plan report of the Working Group of Ministry of Textiles, RMG, sector
provides 11.22 million jobs, (24.83%) of total employment in textile
sector. The 12th Plan report of Working Group of Ministry of Textiles
has set a target of 18% annual growth for RMG exports during 12th
plan; as against 15.17% growth for textile sector as a whole.
Target for the 12th Plan
1. The plan prescribes target of US$ 32.03 bn. for RMG in 2016-17,
which is highest among all verticals of textile value chain
benefits under section 35 (R&D) and section 80JJAA of IT Act,
Constraints
1961 (minimum workers/days)
2. Limited fabric availability, particularly in non-cotton segments 12. The manpower engaged by the contractors in the exporters
and specialty segments-need to step up easier supply systems premises, who are involved in the manufacturing activity in the
3. Limited availability of trimming and embellishments domestically terms of section 2(f) of Central Excise Act 1944, meant for export,
- need to step up easier supply systems not fully exempted from the perview of Service Tax
4. No mechanism for refund of state levies, octroi, electricity duties 13. The Service of “Cash Management” rendered by the overseas
etc. on garment exports Forward Agent (FA) not covered by the heading “Banking and
5. All taxes except customs duty get exported in the absence of All Other Financial Services” and thus not liable to payment of
Industry Duty Drawback, in case when fabric inputs are procured service tax, causing avoidable litigation to exporters
through imports duty free 14. AEPC is an export promotion body and is liable to pay service
6. Nil/partial refund of service tax on account of issue of nexus of tax for providing services to its members for export promotion
services with exports like services rendered by Container Freight activities – costly services to exporters
Station (CFS), Clearing House Agents (CHA), Terminal Handling
Charges (THC) etc. Proposal on Direct Taxation
7. Service tax on Govt. grants to EPCs, hits even the Govt. support
leading to unnecessary paper work and transaction 1. Amendment in Section 35 of IT Act 1961
8. High cost of pre and post shipment export credit rate, since the Current Position: deductions in respect of expenditure
introduction of Base Rate of credit in place of Benchmark Prime on scientific research under Sub Section 35 (1) (ii), an amount
Lending Rate in 2010. equal to one and three-fourth times of any sum paid to a research
9. In-competitiveness of our garment export industry due to high association provided, that such association, university, college or
cost of manufacturing on account of loading of state levies, octroi other institution for the purpose of this clause-
and electricity duty etc. not refunded at all. • Is for the time being approved, in accordance with the guidelines,
10. High cost of manufacturing due to high interest rates on export in the manner and subject to such conditions as may be prescribed;
credit; erosion of capital base and
11. Garment export industry not able to take advantage of existing • such association, university, college or other institution is specified
16 APPAREL INDIAPre-Budget AEPC
as such, by notification in the Official Gazette, by the Central involved by raising the ceiling to 5%]
Government (ii) Expansion of eligible items (Tissue paper for packing, dyestuffs,
Suggested Amendment: The benefit of this section should adhesives, artificial fur, and silicon crystal packed bag for
be extended to readymade garment sample making to the extent of absorbing the moisture) should be added in the duty free list of
5% of the turnover of that assessee in the same assessment year. trimming and embellishments:
[At present 36 items of trimmings and embellishments are allowed
and if these 5 items are added, the same shall be well within the
Justification rate of entitlement
(iii) In above said entitlement under S.no. 282(y) of the notification no.
I. The garment making activity in-fact is an outcome of scientific
12/2012-custom dated March 17, 2012, “sample fabric of total
research.
length up to 500 meter imported during one financial year” is
II. It involves creation of fabric, design, pattern and colors which
allowed, which should be amended to read only “sample fabrics”.
vary according to need
The same shall be well within the rate of entitlement.
III. Samples are made for 8 to 10 fashion seasons which are done
in house and incurs extra cost on raw material, capital and man
All Industry Duty Drawback
power
IV. Further, since the coverage of this section would be to domestic as 1. Full neutralization of state levies, electricity duty, octroi, currently
well as export industry, it would be fully WTO compliant. charged to exporters but not disbursed under All Industry Duty
AEPC proposes Amendment in Section 80JJAA of IT Act, 1961 Drawback.
Current Position: deduction is allowed for the amount equal 2. Disbursement of excise portion of all industry duty drawback
to 30% of “additional wages” paid to new regular workmen (in wherever fabric, which is around 50% component of garment,
excess of 100 workmen)for workers employed for 300 days , is imported duty free and other raw material/consumables are
subject to condition about nature of employment procured duty paid domestically under corresponding value
Suggested Amendment: employed for 300 days may be addition.
amended to 150 days and workmen should also include contact/ 3. Simplification in classification of garments at the exit point for the
casual workers purpose of payment of duty drawback
Justification Proposal on Service Tax
1. Waiving of Service Tax on taxable service in sub clause (zzze) of
I. The RMG industry is seasonal clause (105) of Section 65 of Finance Act on services may be
II. There is no business for Autumn/Winter season. provided to specified associations under (zzze) of Finance Act for
III. The factories are functional only for 6 to 8 months, therefore do the period of viz. 16.06.2005 to 06.07.2009
not qualify for 300 days of working to a regular employees, 2. EPCs should be exempted from service tax payment on organizing
IV. Tax Benefit for the training of the unemployed youth in garment exhibition in domestic market
sector with decisive employment 3. Garment export sector should be brought under the negative list of
3. Commission paid to foreign agents residing abroad may be service tax
exempted from the purview of TDS U/s 195 of the Income Tax Act
Proposal on Banking and Finance
Proposal on Excise Duty
2. Separate chapter for pre and post shipment export credit at fixed
1. The readymade garment industry should continue under optional rate of 7.0% interest and apparel sector to be included in the
CENVAT chain priority sector lending. Till such time, in RMG, sector 3% Interest
Subvention Scheme, which was available up to 31st March 2014,
Proposal on Customs Duty should be continued.
World trade in MMF garment is around 60%, whereas India
1. (i) Entitlement of Export Performance Certificate (EPC) should predominantly exports only Cotton garments. Currently, around
be increased from 3% to 5% (Notification No. 05/2014-Customs 80% export from India is in Cotton/cotton blend; not able to enhance
dated 17th February, 2014): share in MMF garments- value addition in this regard could make big
[The value of the exports were Rs. 90,402 crore during 2013-14 difference in terms of exports from India.
and the eligible import items value @ 3% would have been Rs. Shri Kaushal Srivastava (Member) Budget, CBEC has responded
2712 crore. Actual use was however Rs. 726 crore only. Even by positively to the AEPC demands and has assured all support to the
raising the eligible ceiling from 3% to 5%, the usage shall not garment exporters which have the highest employment potential and
exceed Rs. 2712 crore limit. Thus, no additional duty foregone is capacity to boost manufacturing in India.
APPAREL INDIA 17WTO Updates
Yemen to become 160th WTO member
Yemen deposited its “Instrument of Acceptance” on 27 May 2014 with Director-General
Roberto Azevêdo, confirming its membership terms. According to WTO rules, Yemen will
become a full-fledged member on 26 June 2014...
Yemeni Minister of Trade and Industry, and WTO Director-
General Roberto Azevêdo.
Yemen is the seventh least-developed country (LDC) to accede to
the multilateral trading system since the WTO was established in
1995. As an LDC, Yemen will benefit from technical assistance
and capacity building from the WTO Secretariat to support the
implementation of its accessions, commitments, negotiate trade
rules and develop the trade-related skills and infrastructure
needed to benefit from its WTO membership.
DG Azevêdo welcomes Yemen to the WTO
“On behalf of the WTO, I would like to pay special tribute to
Minister Saadaldeen Talib, who, as Chief Negotiator, guided
By depositing the document with Director-General Roberto Yemen through the accession process.
Azevêdo, Yemen activated the 30-day countdown to its WTO We celebrate accessions both because of what it means for the
membership which will be effective on 26 June 2014. In the individual country, but also because of what it means for this
“Instrument of Acceptance”, the Yemeni government declares organization.
that the law approving Yemen’s Protocol of Accession enacted Accessions help to safeguard and strengthen the multilateral
by Parliament was issued by the President of Yemen on 11 May system by:
2014. • spreading trade liberalization and adherence to common rules
Yemen applied for WTO membership in April 2000. It completed and standards;
its application process on 26 September 2013 when the Working • building capacity;
Partyconcluded its accessions negotiations and adopted the • improving market access opportunities;
report of the Working Party ad referendum (i.e. subject to formal • and fostering international cooperation.
approval by the Ministerial Conference). And, of course, each accession takes the WTO closer to its goal
Trade ministers of WTO members officially approved Yemen’s of universality.
accession on 4 December 2013 during the Ninth Ministerial This work is a strategic priority for the WTO — particularly the
Conference in Bali, Indonesia. The Protocol of Accession accession of LDCs.”
(document WT/L/905) was signed by H.E. Dr. Saadaldeen Talib, The Republic of Yemen will be our 35th LDC Member.
Trade statistics show the least developed hit
more severely by global slowdown - DG WTO
Least developed countries experienced growth in 2012 and 2013 that was below their
previous average, but could gain from an upturn since a large share of their exports go
to Europe, which is recovering, Director-General Roberto Azevêdo stated his concerns
at a press conference on the latest trade statistics on 14 April 2014.
In 2009, in the aftermath of the global financial crisis, trade suffered Since then we haven't seen any more declines — and that's good news
its largest decline on record — down 12% in volume terms, and 23% — but, other than the partial rebound in 2010, growth has remained
in dollar terms, compared to the previous year. a long way below the historical average.
18 APPAREL INDIAUpdates WTO
And for the last two years trade growth has been sluggish.
So let's have a look at what happened in 2013 — and how we did in
terms of our forecasts.
As it is in every situation, these forecasts are not intended to predict
the exact figures. If they do it's by chance, frankly, not mathematical
precision.
What you are really trying to do is, predict the trend.
And in 2013 we think we got it right. We forecast that the overall story
would be one of subdued trade growth.
Our original forecasted was 3.3%, which we subsequently revised to
2.5% due to the downgrading of GDP forecasts during the year.
This reflects the methodology we have for this work.
As with any forecast, our trade forecasts are predicated on a series
of assumptions. The extent to which these assumptions materialise
plays an important role in the accuracy of our forecasts. If they don't
materialise then we recalibrate our work.
Chief among these assumptions are the predictions of GDP growth
produced by other international institutions, including the IMF and
OECD. In 2013 the EU recession ended in the second quarter rather
than the first, as we had expected-and both trade and output in large
developing economies were slower than expected. This meant GDP
forecasts for the year had to be revised, and therefore so did our trade Developed Countries – and this is something that should always be
forecasts. World trade growth slowed to just 2.1% in real volume terms at the forefront of our minds. These are the poorest countries in the
in 2013, fractionally down on the year before-confirming the scenario WTO membership, and so their evolution is something we should
we outlined of subdued growth. So now let's take a look forward to follow closely.
2014 and 2015. If GDP forecasts hold true, we expect a broad-based In general, the economic performance of LDCs is more closely linked
but modest upturn in the volume of world trade in 2014, and further to the external environment, than it is in larger, more diverse emerging
consolidation of this growth in 2015. For 2014 world trade should rise markets. And it is clear that they have keenly felt the impact of the
by 4.7%. This is not yet quite at the historical average, but it is better global slowdown in the last two years.
than last year. It would definitely be a step in the right direction. Growth in the dollar value of LDC exports was 1% in 2012 and 5%
Forecasts for 2015 are much more uncertain because, of course, they in 2013. This is well below the 13% average since 2005 and down
are based on longer-term assumptions about the evolution of the world sharply from the 24% increase seen in 2011.
economy between now and then. Conversely, LDCs may benefit disproportionately from any
With this caveat in mind, we foresee a 5.3% increase in world trade in improvement in the world economy going forward, since a large
2015. This would be in line with the 20-year average. portion of their exports-nearly 20%-goes to the recovering European
Underlying these numbers is the expectation that trade growth in Asia Union. The hard data is thinner for these economies, but again this
will continue to outpace other regions, while Europe will continue to is an area that we will be watching closely and putting even more
lag behind, as high unemployment restrains consumer demand for emphasis on in future. In closing, it's clear that trade is going to
some time to come. improve as the world economy also improves.
A return to positive growth in EU trade flows will make a very But I know that just waiting for an automatic increase in trade will not
important contribution to trade growth globally as the EU accounts be enough for WTO Members. We can actively support trade growth
for around a third of world trade. So, once again, we will be watching by avoiding protectionism in times of uncertainty -and, of course, by
closely to see if the recovery in the EU disappoints. updating the rules and reaching new trade agreements.
We can go into more detail in the Q&A. For now I'd just like to pick The deal in Bali last December illustrates this. It will dramatically cut
out two points of interest. the cost of doing business across borders-particularly in developing
First is the ratio of trade growth to GDP growth. countries-while also supporting LDCs to gain preferential market
The average ratio since the mid-1980s is around 2 to 1–with trade access. But of course there is a lot more we can do.
growing at twice the pace of GDP. We must make every effort to move towards concluding the Doha
However, in the last two years the ratio was closer to 1 to 1. Development Agenda as soon as possible. We have already made
Although two years of roughly equal growth for both trade and GDP is progress in this work-building on the momentum of Bali. Now we
not unprecedented, it is quite rare. are discussing new ideas and new approaches which could help us
Whether this constitutes a trend, it is too soon to say. But it is clearly to get the job done-and to do it quickly. Concluding the round would
something that we will be keeping a close eye on. provide a strong foundation for trade in the future, and a powerful
The second point of interest is what has been happening in the Least stimulus in today’s slow growth environment.
APPAREL INDIA 19FASHION Intelligence
Cost Control It is time to go “Back to the basics ‘Ask Yourself’
By Paul Collyer, UK
Remaining both profitable and competitive is probably
more intense and challenging today than at any time
during the last 40 years in the garment industry.
Manufacturers have principally reduced their costs
to what they perceive to be the minimum; however,
economic pressures require manufacturers to again
re-examine their businesses and see where they can
“cut further fat”.
In the current circumstances, the most cost-effective way to
address cost control is not to indulge in grandiose changes of
production methods or acquire equipments but to look inward
and consider what is currently happening and utilize the existing
resources of men and machines better. A thorough review of
each production-related activity needs to be conducted and
improvements are needed to be sought wherever possible.
It Is Time To Go “Back To The
Basics”: ‘Ask Yourself’
The time is for introspection for all the manufacturing
concerns without exception. Maintaining cost effectiveness
and quality are the areas where manufacturers are looking
forward to improve profitability. But while doing so they
should remember that:
• the implementation and cost measuring of
• They cannot gain an advantage over their systematic operator training systems and
competitors by the use of technology; the same • the combining of all activities into a systemic
equipment is available to everyone. approach to managing a factory.
• The purchasing of materials cannot give a
competitive edge, particularly as many retailers It is time for manufacturers to revisit all of these areas of
now insist on materials being purchased from a the business to ensure that resources are not being wasted.
limited number of approved suppliers. During the day-to-day management of a sewing unit, it is easy
• So, what is left to do is examining the manufacturing for standards to slip, performances to drop and bad habits
costs, i.e. labour cost (standard hours) and the and poor practices to return. Action plans overseen by the
control of overheads as this is the only point at senior management should be drawn up as part of a business
which performances of different manufacturers improvement initiative.
can be compared.
People
Key elements of running production units
The essential part of any factory is people; garment
• the performance of production management and manufacturing is a labour-intensive business, therefore
supervisory staff effective organization and control of the work force is crucial
• labour cost control monitoring to its success. In any factory this role is the responsibility
• work methods
20 APPAREL INDIAIntelligence FASHION
of production managers of varying levels of seniority, and • How much production is lost because operators are
supervisors. It is therefore necessary to consider: working to low performances as they either have
no incentive to work, or do not have the ability to
• How well are the operators performing? perform due to the lack of skills, or are working to
• Do they know the levels of performance they should an inadequate work supply or target?
achieve?
• Do managers and supervisors know their roles and Equal production for all operations might
responsibilities? not be a perfect balance
• Have their roles been clearly defined in a job
specification? A major cause of lost production is operators working down to
• Are Key Performance Indicators (KPIs) used and inadequate targets or work supply. If supervisors collect two
does the labour cost control system given clear hourly output figures from each operation then the following
feedback? should be noticed:
When supervisors/operators dealing with shorter production • Does each operation in a production line produce
runs (in sampling lines) deal with large production orders, exactly the same number of pieces as the previous
their efficiencies might be affected. and next operations? If so, then this is not a perfect
balance but operations and operators are working
The question to be asked: down to their work feed.
• If two or more operators are doing the same
• Is the performance system flexible enough to operation do they all produce exactly the same
provide necessary consideration to it? quantity every hour? If yes, then they are not
working to maximum but instead sharing the work.
Performance reviews should be held at set intervals to a • Do operations and sections produce their hourly
specified format so that everyone involved knows exactly what and daily exactly same? If so, the target is wrong.
is to happen and how it will be conducted. • Is the operation target being met but the operator(s)
Achievements can be discussed, shortcomings appraised and are working to a low performance? In this case, the
development plans agreed as required. balance is wrong! This situation will particularly
An adequate planning of resources and a motivating payment inhibit the development of trainee workers.
system also helps boosting the performance.
The key is to ensure that operators are fully trained, have
Following must be considered to do this: an incentive scheme that is both fair and transparent and
have supervisors who are competent in production balancing
• Is non achievement of production targets accepted techniques to ensure that sufficient work is available.
by managers who consider absence or style change
to be reasonable excuses instead of problems that
should have been overcome?
• Does the payment system motivate both direct and
indirect workers? Is salary related to achievement?
• How many “helpers” are present, what do they do,
are they necessary or can their work be eliminated?
• Do the people have the skill and knowledge to carry
out their roles to the required standards?
Lost Output
Output is not only affected by the abilities of production
managers and supervisors but the planning of orders and
sourcing of materials.
• How often are styles put onto the line without all of
the components being available?
• How much time is lost through operators waiting
for work or machines to be mended?
APPAREL INDIA 21You can also read
