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  1. Visit For latest updates, news and views form the world of textile at one particular location where you can also get the Textile Retail Industry Newsat no such time.

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  4. 5 Apparel OnlineIndia

  5. FROM THE EDITOR-IN-CHIEF’SDESK… A VISITOR FROM DHAKA REITERATES BY BELIEF THAT WE NEED TO CREATE REGIONS AND NOT COUNTRIES FOR SOURCING Another current perspective that we discussed was the unjustified fear of the adverse impact of TPP advantage to Vietnam on Bangladesh. Faruque was of the opinion that the TPP would not impact business in the near future as it would be very difficult to comply with the condition of ‘rule of origin’ that necessitated building of yarn and fabric capabilities in a very short time. Healso felt that Bangladesh as a garment manufacturing destination was far ahead of Vietnam and thegap was too wide to be narrowed down any timesoon. I completely agree with him; in fact from my interactions with people working in Vietnam, it is obvious that the labour there is educated and wages will continue to rise, and that garments which require ‘cheaper labour’ to remain competitive will not attract the workforce after a point of time. In this scenario, how can Vietnam expect to grow in garmenting at the level that is being projected by someanalysts? However, a country that could pose a challenge is Ethiopia, as buyers like PVH and H&M are very keen to develop the region as a manufacturing source for tariff advantages that itprovides to the US market. Faruque shared that PVH was sponsoring delegations of Bangladeshi entrepreneurs to Ethiopia and also danglingthe carrot of guaranteed work for at least 18 months, in addition to the advantages and concessions that the Government of Ethiopia isproviding, if they agreed to set up units in the region. He argued that their desperation to get Bangladeshi exporters to set up units in the region only highlights the reliability of the exporters from Bangladesh in the global garment trade… He has a very valid pointhere! Though Bangladesh is secure in the knowledge that business for them will continue to grow for many more years, Faruque did voice his concern with regard to the gap in education. He invited Apparel Online to help the BGMEA to organize training sessions to impart industry-focused education to the upcoming generation and also hold focused sessions for the industry on various topics… Education is an area that I am also very passionate about and I firmly believe that not only Bangladesh, but India too needs a fresh look at its institutes and traininginitiatives. While we exchanged notes, it became exceedingly more obvious that at the end of the daywe were all serious businessmen looking at ways to enhance business opportunities and what a better way than moving forward together in a collaborativeeffort! A surprise visit by FaruqueHassan, Senior Vice President, BGMEA and MD of Giant Group, Dhaka to my office led to an interesting discussion on many issues the industryin the region is facing and also how wecould collaborate forgrowth. While I have always maintained that there is no competition with Bangladesh and both countries have very distinct and individual strengths that are in no way overlapping, it was heartening to hear a reflection of this thought from Faruque also. He agreed that the two countries could grow together, complementing each other’sstrength. How can Bangladesh even think of producing the huge range of fashion fabrics and yarn dyed fabrics that India is known for, a strength that has been built over centuries ofexpertise…, he questioned, and argued why should they even attemptto? Giant Group buys yarn from India and is happy doing business with manufacturers in Ludhiana. The relationship created with the suppliers over these years far outstrips the so-called advantages of sourcing locally!If Bangladesh exporters grow, so will the business opportunities for fabric and yarn suppliers in India…; it’s an obviouslink. Can we in India ever think of the huge scales that most Bangladeshi companies are known for...? India is and will, by and large, remain a manufacturing destination for small quantities and ‘complicated’ designs. Buyers understand each manufacturing base and planprogrammes accordingly; some even attempt to move out of this comfort zone unless the temptation is too good to ignore. Volumes at competitive prices are what Bangladesh specializes in, and as Faruque says the exporters are mostly working to improve the quality of stitching and productivity… Products with value adds, like India, are still a faraway dream; so where is thecompetition? Compliance and willingness of the industry to meet international standards was another area that we both found agreement in thought… Motivation has to come from the industry and no NGO or Buyer should be allowed to push beyond reasonable and viable implementations. Bangladesh has seen some bad press in thepast and Faruque complimented ApparelOnline for being positive and believing in responsible reporting… It gave me a sense of achievement to know that the industry on both sides of the border understands andappreciates ourphilosophy. 8 Apparel Online India | MAY 16-31, 2016 |

  6. MINDTREE havinglakhsofworkersallinthespaceof1or 2 streets. As happened in this case…, some unknown leaders made this issue in a couple of factories and the whole agitation soon spreadlikeawildfire.Andwhereasonthefirst day there was no violence, but on the second day some ‘outside’ elements took advantage ofthesituationtocreatedisturbance. ObviouslythisisalessonfortheGovt.notto tamperwithlegislationinvolvingmillionsof workers without adequate understanding orstudy.Thesamelackofforesightmade themchangetheinterestrates,followedbya hurriedretraction. Frankly speaking, the entire question of labour reforms is a story of mishandling. The word ‘labour reforms’ has begun to mean, “Taking away workers’ rights, hire and fire, andachangetocapitalisticandrightestview ofpolitics”.Thisneedsnotbeso.Thereare a number of amendments required in the factories act and other labour legislation which are necessary, both in the interest of workers and management and modifications of these would be a win-win situation. No attempt should be made to politicize these changes. These add relevance to dusty laws whicharenolongerpertinent,andneitherthe companies or large automobile companies may range from Rs. 30,000 to Rs. 40,000/- a month.Hence,theyhavenosafetynetandPF savings is theirlast resort. Why should this happen in Bangalore? There isan ease ofmovementforworkersfromone job to another. There is also huge shortage of workersinthegarmentindustryinBangalore, soworkersusetheopportunityofcompleting 5 years in service so that they can draw their gratuity and withdraw their PF by change of job. They have no hesitation to do so as jobs are available in the next door factory, in fact athigherwages.Theeaseofjobavailability is a big characteristic of the garment industry in Bangalore which enables drawing of PF funds at regular intervals. There are number ofcompliantfactoriespayingPFregularlyand MIND Recent developments on EPF (Employees’ Provident Fund) issue have many perspective/angles… While it instigated violence in theapparel manufacturing industries of Bangalore, there was little or no reaction in other parts of India. Why and what could be thereasons? How do you view the stand of the Central Government on EPF…? It hiked contributions just two years ago, followed by new amendments of withdrawal, and then a sudden U-turn; also there has been fluctuating rate of interest on the same. How do you see the entireissue? TREE TOPIC OF DEBATE Jagadish Hinduja, Chairman, Gokaldas Images,BangaloreTherecentdisturbance in Bangalore pertaining to PF is an indication of how little research and study is done by the Govt. when they bring in legislative changes. Apparently, the Finance Ministry foundaveryconvenientwayofholdingthese huge PF funds in their hands by bringing about these amendments. Workers have been making use of PF funds when they face financial difficulties for education of their children, emergent health situations, family loss,etc.To ask workerstoforegothesefunds and wait till they are 58 years, to draw them, was insensitive to say the least. One should not overlook that workers in this industry draw Rs. 7,000/- to Rs. 10,000/- per month, whereassalariesofworkersinmultinational 10 Apparel Online India | MAY 16-31, 2016 |

  7. MINDTREE to Rs. 15,000, there should be no deductions of PF amount; beyond that the Govt. can do whatever they want to do. I feel if a worker wantstowithdrawfullamount,he/sheshould beallowed. partyinpowerorpositionshouldplaygames on thesechanges. Transparency, consultation shouldbethewatchwordforchange. • SudhirDhingra,CMD,OrientCraft,Gurgaon • ManyactionshavebeentakenbytheGovt. with good intent; in this issue the intent of the Govt. was clear – that the people should save theirmoneyfortheirretirement.Butthis decisionwasnotpracticalbecausenowadays, onandoffeverybody,andespeciallyworkers’ • community,needmoney.Ifanybody’smoneyis blocked, agitation will be there. It is good that Govt.realizeditself.Itis a verysensitivematter, attheendofthedayindividualhavetomake a choice that what does he/she want to do with his own money and Govt. have no business to intervene. AnimeshSaxena,CEO,NeeteeClothing, Gurgaon It was a decision with good intentionasGovt.wantstosecurethe post-retirement life of the workers. There is requirement to change the model of social security in our country as the current PF system does not seem very good. There can be something for social security like CSR. We looktogarmentindustry,andespeciallytothe workersinBangalore,thereareseveralwomen workers;theyneedmoneyaftereveryfourto five years fortheirdifferentpersonalneeds,and they find that withdrawal from PF is an easier way to get the money. But now the conditions of withdrawal at the age of 58 years only was something totally against their need. In North India,wehavetodocounsellingoftheworkers as they are not willing to deduct PF and withdrawthemoneyimmediatelyafterleaving their job. The Govt. should allow them to withdrawsomeamountfromtimetotimeand keepthebalancefundsfortheirsocialsecurity. Competition isgetting fiercer, and exporters are finding it difficult to survive… In this scenario we hear people talking about some exporters undercutting and lowering prices to get the orders,‘killing’ the market forall. Have you ever faced such a situation; and what do you feel isthe best solution to keep prices at a reasonable level and yet getting orders? Be a part of our latestdiscussions... Post your comments on • JDGiri,Director,ShahiExports,Faridabad • The Govt.’s intention on this issue is very good,butlookatthekindofourindustryand the workforce’s expectations. Today almost 20 per cent of the wages are going into the PF. Workersareforcedtogotothemoneylenders andborrowmoney,sowhatneedstobedone inthisregard…?Ifeelthatforsalariesofup| MAY 16-31, 2016 | Apparel Online India 11

  8. WORLDWRAP INDITEX REACHES NEW HEIGHTS WITH GLOBAL SUCCESS IN2015 ZARA AND BERSHKA UNSTOPP ABLE Setting benchmarks in fast fashion, Inditex has exceeded analyst’s expectations with the retailers profit growth in 2015 aided by the opening of 330 new stores in 56 markets last year bringing its total number of stores to 7,013. Apart from offering fashion clothing,the company has focused equally on e-commerce and brick & mortar stores to clock in profits,making e-commerce the gateway for consumers to enter the stores. “The business isintegrated from every point of view. Two- thirds of returns are in-store because our customer prefers to go to the stores. In many cases this is an online return but at-store sale, because the customer goes to the storeand is changing the size,”reveals Pablo Isla, CEO, Inditex. Recently, ZARA has opened a new three-floor store in the heart of SoHo, designed entirely by ZARA’s architecture teamhaving original cast iron facade, brick wall, airy interior that features beauty, clarity,functionality andsustainability. Continuously, Inditex is expanding its integrated store and online sales strategyglobally by opening ZARA’s online store in Spain, France, Germany, the UK, Italy and Portugal,and more physical stores in markets such as Vietnam, New Zealand, Paraguay, Aruba and Nicaragua in 2016. As the company’s new sales rose by 15.4 percent, with ZARA chain posting a17.5 per cent rise to ¤ 13.6 billion, Bershka sales were alsoup 12.7 per cent to ¤ 1.87 billion, making it the second-biggest chain for Inditex, followed by Massimo Dutti with sales of almost ¤ 1.5 billion, up 6 per cent, and Pull&Bear jumped by 10.4 per cent to ¤ 1.41 billion. The trend also continues in the new financial year with 15 per cent increase in sales in 2016 as of now. Moreover, the company had 1,52,854 full-time equivalent staff last year, up from1,37,054. What attracts the customers to the company’s wide arrayof brands, specifically ZARAand Bershka is its weeklydistribution of limited new productsto shops worldwide, creating an environment of buy now or miss out for consumers. This ismuch in contrast with GAP’s business model that lets itsseasonal The Inditexjuggernaut is getting bigger and better as the Spanish company that boasts of brands like ZARA, Bershka, Pull&Bear, MassimoDutti, etc. has logged its highest sales growth in the past three years mainly due to additional physical stores, risingSpanish consumptionand its expanding online presence worldwide, resulting in 2015 sales increasing by 15.4 per cent to US $ 22.9 billion. Specifically, ZARA and Bershka’s steady streamof on-trend fast fashion clothing has keptsales robust against other clothing retailers such as GAP, J.Crew, Urban Outfitters, A&F,etc. 12 Apparel Online India | MAY 16-31, 2016 |

  9. Babni Lal, Economic Advisor, Ministry of Textiles (MoT) explained about the initiatives taken by the MoT as Mehmood Khan (L) of Janm Foundation raised questions Chairing a consultation meeting (organized by Research and Information System for Developing Countries) with economists and media observers on ‘FTAs &India: The Way Forward’, Commerce and Industry Minister Nirmala Sitharaman blamed the EU for showing little interest in the trade pact. She brushed offsuggestions that the Government hasn’t been proactiveenough to clinch the FTA. According to her, “India haswritten (after the latest India-EU summit in Brusselson March 30) to EU trade negotiators for dates toresume trade talks, but there has been no response yet.” The Minister also said that the perception of Indiabeing a laggard on global trade negotiations needs to be fought both by the Government and otherstakeholders. (L to R) Sudhir Dhingra, CMD, Orient Craft; Chandrima Chatterjee, Advisor, AEPC; Sushmita Dasgupta, Economic Adviser, Ministry of Commerce; and Dr. Saon Ray attending the seminar in terms of infrastructure, sizeand scale, it is still an issue in apparel manufacturing, whereas this is the only sector where size andscale is possible in very short span of time. Raising the concern of Indian companies moving intoBangladesh and Ethiopia, he pinpointed that the ability of size and scaleand to a much greater level of ease of doing business at such ports, are main reasons for movement in that direction. “Every single hour matters…; why it should take us 3 to 4 days more in comparisonto Bangladesh in export of goods? This is no rational at all. We need far better integrated solutions. Address whatever is holding back ourexports in terms of custom clearances; we need to cut entire paper work. We should need just one document and it should take maximum three hours. Turnaround times at ports, giving efficiencies at much greater levels will resonate economic efficiency,” saidAmitabh. Answering to the admission of limitations of Indian Government on TPP raised by SushmitaDasgupta, Economic Adviser, Ministry of Commerce, Dhingra was of the opinion, “When they(other countries) can sell us theirchoppers, luxury cars or wine…, whycan’t we force them for our apparels?” He regretted that the Government never had focus on garment export industry, and similarly theindustry too never ever talked strongly as a group to the Government. “Indian apparel entrepreneurs have done their best as individuals, but what can they do if there is no demand. The customers do not want to pay more, buyers are completelyunder pressure. The only solution is FTA with bigger markets like EU and US which can eliminate this duty difference of 12 to 29 per cent.TPP is going to kill us,” said Dhingra and criticized the aspects/obstacles in forging and sealing FTAs. “We have issues regarding productivity, labour laws, manmade or cotton…, but still our industry can grow four times despite all these if we get the FTAs with US and EU,” heemphasized. “We are talking about job creation and the recent Jat agitation in Haryana was all about reservations so that their kids can get jobs inthe future. What percentage of overall people, are truly qualified for the jobs that are coming up through education…? It is only our apparel industry which can give jobsafter a little training. Export of every US $ 1 billion of apparels canadd 2.2 million jobs,” added Dhingra, saying further that buyers are lined up to work with Bangladesh and waiting for almost 6 months as Bangladesh is already full. “Itis wrong that Bangladesh is onlydoing basics, they are doing embroidered garments also and that too with the help of Kolkata which is known for its finest work. So India isgoing to lose more and more business. When Sushmita sought suggestion to improve the apparel export, Dhingra also insisted that the Government should offer women hostels as there is acute shortage of proper housing, especially where the job opportunities are. Babni Lal, EconomicAdvisor, Ministry of Textile (MoT)assured that upcoming textile policy will have focus on job creationin textileindustry. Vijay Mathur, Additional Secretary General,AEPCinsisted that industry strongly needs an increase in the overtime working hours from 50 hours a quarter to 50 hours a month to increase the overall production. He also said that Government needs to change its view regarding R&D in apparel sector. Few amongst theaudiences raised the question that demand has to be created on the basis of strong products and we can’t depend onthe Government to generate demand. “Who is bothered about job creation in India, initiatives likeMNREGA is not something that is really helping the society or the industry in particular,” pointed out Mehmood Khan of Janm Foundation, a civil society organization working in Haryana and Uttrakhand to support the marginalized. Rajat Kathuria, Director, ICRIER, in his concluding comment, was of the opinion that the report of the World Bank will definitely help Indian apparel industry to grow further, as it gives deep insight into grey areas and also highlights theopportunities.

  10. MERCURY FABRICS: PROVIDING HIGH-QUALITY KNITTED FABRICS THROUGH A TECHNICALL Y-EQUIPPED SETUP TajinderSachdeva,MD,MercuryFabricswithhiscoreteamfrommarketingandproductionattheBawalfactoryontheoutskirtsofDelhi-NCR “My enthusiasm for learning and the passion to do things differently has brought me where I am today. Whenever I go to any exhibition, I insist the machine providers to show me their factories, which widens my learning experience,” assertsTajinder. Such is the case that taking inspiration from global benchmarks, the Mercury factory in Bawal (Haryana), on the outskirts of Delhi-NCR, has been built on the lines of a European factory. The most stringent and quality-conscious buyers like H&M, C&A and M&S, have accredited the factory and appreciated the effort gone in to making it a world-class facility; no wonder its customers include big names in the export arena such as Shahi Exports, Orient Craft, Richa Global, etc. “I listen and take corrective actions aroundthe smallest of complaints that come to me. That’s how you earn respect. Seeing me working like this, my coming generation is also equally sincere. What else do you want?” reasons Tajinder, whose sons Rahul and Pranav are deeply involved with MercuryFabrics. Equipped with the latest technology, Mercury is also providing better price in comparison to China in certain qualities with the help of a trained technicalteam, who not only understand knitted fabrics, but also the technology installed. “I am completely satisfied and happy that I have a good team consisting of people who have many years of experience in this field and have been with me for a very long time, to man the unit,” states Tajinder. The facilities at the factory also includes Reggiani Mezzera washer, a pre-requisitefor Being one of the largest knitted fabric manufacturers in India, Mercury Fabrics is a significant supplier to many leading fashion labels of the world including H&M, C&A, M&S, etc. A fully furbished R&D lab accredited and approved by leading international fashion labels together with the best of technology from around the world like Italy, Japan, Germany and Korea, and teamed up with lean manufacturing processes, enablesMercury to deliver unmatched quality and high-value products.In conversation with Apparel Online, TajinderSachdeva, Managing Director, Mercury Fabrics shares thejourney of becoming a market leader today and the futureahead…

  11.| MAY 16-31, 2016 | Apparel Online India 23 23ApparelOnlineIndia


  13. in the fashion scene over the last few seasons, abundance of beautiful blooms wereseen on the Fall/Winter ’16 runways. Dolce & Gabanna opted for bright and beautiful, Mulberry unveiled a moodier graphic floral and Dior showcased delicate silk and embroidered micro-petals. Surfaces appear to have been sourced from the home- furnishing archives and characterized by interior-look patterns. Antiqued aesthetics with aged upholstery effects are the key to this value addition trend. Ornate jacquard and brocades with enlarged floral tessellations find interesting interpretations. Muted colourway tone vintage-look florals and wallpaperprints, as also touches of jewel shades or metallics add richness to the entire look. Lavishness and opulence were missing from the previous seasons, owingto the requirement of minimalistic designs and straight cut silhouettes, but these luxurious yet substantial upholstery- inspired motifs arecoming out as the best countertrend. S S Luthra, Creative Director, Textile studio, discussing about his collection said, “We are into embellished garments and now we are trying to do different fabrics, satin, polyester, and different embroideries, and different kind of work, compared to other suppliers. Interior motifs are being done on styles using hand thread work, sequin, mix embroidery mainly on jerseys, andviscose.” Burberry and Dolce & Gabbana went for metallic brocades for their respective collections – the former presented pleated skirts with a boxy top adorned with olive and silver threading, whereas the latterwent for an all-gold with a black surface for their luxe coats. The most interesting twist to this flowery tale is that the motifs can be translated onto apparels usingmultiple techniques. Placement prints in folkloric styles, botanical landscapes and delicate florals presented in strong elements of digital printing and advanced engineered printing techniques. The application of hand-drawn, hand-painted,hand-dyed, hand-cut and hand-beaded forms are anticipated to grace the collections directly picked up from the runways. Coming summer, artists would be hand painting on apparels, as well as accessories and then use sketching or drawing over it to create deep textures. This is a good sign for Indian exporters, as handwork has always been the strength of collections presented by the community. The interior motifs observed can be classified into three forms – romantic, intricate and experimental. Romantic floral motifs are usually seen on free flowing dresses or garments of light colours. They are the most classic version of flower power – feminine and flirty. The intricate motifs are usually the most nuanced version of high fashion. These are mostly couture and include embellishments that are detailed and fine in appearance. RajeshKumat, Director, Ganga Exports, very rightly mentions, “In the initial flush of petal fashion this year, renowned designers took to experimenting with the flower motifs in black and white prints for women, while on the other hand, colourful flowers travelled to men’swardrobes.” And it’s not only clothing that will be witnessing the influx of interior trends, the interior motif has also found its way to socks, undergarments, accessories, and shoes.While the floral print trend has been in full bloom for as long as we can remember, S/S ’17 collections are bringing with it oversized floral motifs that even include 3D designs. On S/S ’16 runways, Erdem, king of the floral print, adapted his signature print in sorbet hued 3D appliquésthat ChristianDior Burberry damask patterns, sujani designs, modern flometric patterns and many more interpretations.” For those who are less willing to live in full bloom all season long, the interior motif trend will continue from last season with printed pants, mini-dresses, skirts, etc. for exporters to put a motifon. Interior motifs are all about having fun with scaling, sizing and techniques to induce joy and romance intospring. caught the eye. Another titan of floral prints, Oscar de la Renta, showed appliqués so big, they were virtuallylife-size. Interior motifs are mistaken for only floral motifs, breaking thismisconception, Manish Khurana, MD, Shivam Terene Pvt. Ltd. says, “Interior motifs are majorly florals but are not bound only tothem. Interior motifs haveelaborated

  14. ULsupports‘MakeinIndia’vision Launches Consumer and Retail Services Testing Labor atory in Bangalore The agency has gone a step ahead by launching a consumer and retail services testing laboratory in Bangalore that will cater to the regulatory and voluntary needs of consumer products such as textiles and apparel for the southern and western regions, which are prominent base for textile and leather industries. Building on the ‘Make in India’ vision, UL has emphasized its credibility as an organization with the capacity and capability to develop standards relevant to the Indianmarket. In a constant endeavour to support the ‘Make in India’ programme, UL is helping Indian manufacturers to expand and sustain their businesses by facilitating global market access. “The Indian market isfuelled with growing impetus for quality assurance, coupled with the increasing awareness for the need for consumer and productsafety. Our new laboratory is an extension of the company’s commitment to be ‘InIndia for India’ while striving towards a safer living environment for all. UL will continue to enable manufacturers to comply with environmental standards and regulations by providing an efficient, cost-effective third party testing services,” informs Suresh Sugavanam, Vice President and Managing Director, UL SouthAsia. Using research and standards to continually advance and meet ever-evolving safety needs, the agency partners with businesses, manufacturers, trade associations and international regulatory authorities to bring solutions for the global supply chain. Itsnew lab will be such a solution forconsumer products, which is the second facility to be established in India after the Gurgaon lab. The new state-of-the-art lab is spread over 4,000 sq. ft., comprising of separate units for analytical, colour fastness andphysical testing as per global standards,with latest cutting edge equipment. It becomes beneficial for consumers as they will be able to benefit from UL’s global expertise to widen their international market access by helping to ensure compliance to a host of safety standards, while addressing product performance andquality. Already, Bangalore is home to UL’s sprawling 40,000 sq. ft. NABL accredited laboratory thathouses advanced facilities for varied sectors like consumer technology, photovoltaic, HVAC, photometry, electrical products, medical devices, and drinking water testing. “UL’s quality and time-bound service has resulted in our customers requesting us to expand our services in southern India. While catering to our existing and new clients, the laboratory will also help our clients to optimize their product performance with UL expert solutions that mitigate potential risks and help protect their brands,” concludes Sarbajeet Mukherjee, General Manager – Consumer and Retail Services, UL SouthAsia. With the new lab in place and the second one in India, UL is continuously working towards supporting the production and use of products which are physically and environmentally safe and putting efforts to prevent or reduce loss of life andproperty. UL, a global independent safety science company, has more than a century of expertise in innovating safety solutions from electricity to new breakthroughs in sustainability, renewable energy and nanotechnology. Throughout its 120 years of journey, UL has been dedicated to promoting safeliving and working environment, which helps in safeguarding people,product and places by facilitating trade. Prof. V Sivalingam, Director NIFT Banagalore inaugurates UL’s new Consumer andRetail Testing Laboratory at Bangalore as Suresh Sugavanam, Vice President and Managing Director, UL South Asia, lookson


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