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Japanese synthetic fiber maker Toray Industries Inc. will take over textile products trader Chori Co., beefing up its textile and chemical product business and expanding offshore operations. It will also acquire the 51.95 million Chori shares owned by top shareholder Asahi Kasei Corp., boosting its stake to 51.46% from 22.87%.

China has directed banks to fund only viable projects due to huge NPAs in the economy. As funds into the textile sector have decreased, the growing industry has come to a screeching halt, with textile sector investments too affected, due to infrastructure problems like power and water shortages.

The EU may do away with its special textile duty discounts on import duties for China and India, to ensure that some of the world's poorest fabric-manufacturing countries too, have access to the bloc's market. Both countries currently enjoy 20% discount in EU import duties.

In response to requests from parents, Japanese company Madre is making bulletproof clothing for children, following a rise in crime rates against them. The range is available in sweatshirts and coats in 12 colours and can be purchased only Online. Madre, which also offers babysitting and school-collection services, recently received orders from USA, too.

In a research conducted for the Superbrands Organisations' annual 'branding Oscars', High Street giant Marks & Spencer has been voted UK's top retail brand, beating stiff competition from retail giant beat supermarket giants Tesco and ASDA. Gillette was voted consumers' favourite brand in clothing, household and healthcare product category.

Carrera Holding Inc., the maker of Carrera jeans and other casual wear, plans to establish a US $ 130 million green-field textile project in India. It has already identified two locations at Coimbatore and a SEZ near IN Port, Mumbai. The project will comprise seven units, from manufacture weaving, to robotics for garment manufacture and retailing.

Wal-Mart will resume online apparel sales, after a three-year break due to high costs and fulfilment problems. The assortment will be the same as in Wal-Mart stores, with styles like back to school and specialty sizes for men's big and tall, women's plus, and juniors' plus, tips on fashion trends and building a wardrobe.

India is the world's second-most attractive retail destination, after Russia. With major markets globally showing signs of saturation, it has emerged as the preferred market for international retailers like Wal-Mart and Carrefour, who are considering tapping the spending power of the country's growing class of middle-class Indian consumers who now have more disposable income.

VF Corp has designated‘Steve Randall’as President of US North Face clothing brand, for the Americas, while‘Todd Spaletto’ has been made Vice-President of US sales, becoming responsible for the apparel manufacturing company's US wholesale business. Randall joined North Face in 1999 and headed growth strategies since the company's take-over by VF Corp.

National News

Exporters set sight on US

Indian apparel exporters look forward to tapping huge US markets in the post-quota era, focusing on the trouser and cotton knit shirt markets, which is one of the fastest expanding segments of the US apparel market. Phasing out of quotas is expected to open up nearly 70-75% of these markets in particular.

A powerloom service centre catering to textile units in Umbergaon, Vapi, Bhilad, Silvassa and Daman, will be set up at Umbergaon. It is likely to be operational by September 2004 and to have a sampling machine with a manufacturing capacity of 20 samples of 5 metres each, daily.

Continued tax disincentives against natural fibres could result in losses on global textile market share, post-quota regime, at the expense of man-made fibre manufacturers. Man-made fibre accounts for over 55 % of global textile trade. Of this, only 15-20 % of Indian textile exports is man-made fibre.

The Government has banned transfer of quotas of ready-made garments for exports to US, Canada and the ED; as a measure to prevent exporters from misusing textile quotas. Union Textile Minister Shanker Sinh Vaghela has stopped sale or transfer of quotas in shirts, trousers, T-shirts, blouses and dresses.

The organised retail industry posted double-digit growth in the first quarter of the financial year, despite some pitfalls from May. Compared to the same period last year, sales rose between 15 and 20% during the first quarter. Though apparel sales were generally dull, good growth was observed in western women's wear.

Reliance Industries (RIL) consolidates its position as the world's largest polyester fibre and yarn player, with the acquisition of polyester manufacturer Trevira GmbH that is set to boost its manufacturing capacity to 1.8 million tonnes per year. RIL Chairman and Managing Director Mr. Mukesh Ambani said this would 'give them a well-timed entry into Europe'.

The Apparel Export Promotion Council (APEC) seeks a special package for doubling garments export from the current US $ 5 billion to US $ 10 billion in the next three years. It recommends restoration of 100% tax exemption for export profits, and the Central Government’s acceptance of the European Union (EU) proposal for increasing garment quota limits.

Bangladesh has suggested a strategic tie-up with India in the textiles sector to combine their strengths to emerge as competitive entities in the global market, post-MFA. It suggests that, in the post-MFA period, a combination of its strength in the garments sector and India's expertise in the primary textiles sector would benefit India, since Bangladesh, being an LDC exporter, would continue to avail of the GSP benefit, for a duty advantage of 12%.

The Centre expects textile exports to increase to US $ 25 billion, within three years of the phasing out of quotas, provided that developed countries don't set up non-tariff barriers. Potential for growth in some areas of garments and made-ups, is as high as 30% to 90%. Exports (US $ 5.2 billion in 2003-04) are expected to increase by 15-20 per cent in the very first year of quota phase-outs.

The Kelkar panel suggests introduction of the Goods & Services Tax (GST), which is a single countrywide VAT on almost all goods and services and the widening of direct tax-base by exempting income earners up to Rs one lakh for the Union Government's objective to bring down the fiscal deficit to less than three per cent by 2008-09.

According to US analysts, Asian giants India and China could soon surpass both Europe and the US as favoured foreign investment destinations, as they are recording a higher growth rate than the others. Both countries have an educated population willing to work hard for modest wages, while private investors are losing faith in the US economy.

Introduction of the zero-tax regime and optional Cenvat will lead to loss of revenue of around Rs 3,800 crore to the Government. However, improvements in investment and employment opportunities in the sector, brought about by the new tax structure, will more than offset this loss, which is a small price to pay for small textile units considering that they are now free from the inspector raj.

The Textile Ministry has set a $ 15-billion export target, after consultations with the industry. Ready-made garments, cotton textiles and man-made textiles have been identified as high growth areas. Silk exports are expected to touch $ 625 million this year and the ready-made garments target has been fixed at $ 6 billion for the current fiscal.

India's refusal of the European Union (EU) offer of enhanced textiles quotas, due to stringent conditions it would have to face, will result in the textiles industry losing Rs 2,200 crore worth of additional exports. EU proposed raising 2004 quota by hefty levels of 30% and India, binding its tariffs across the board at 20% and other proposals like revision of specific duties.

A training centre was recently started in Karur to help improve quality of the regions' Home Textile products that rake in nearly Rs. 1200 crores foreign exchange, annually. Five-day programmes are conducted on a regular basis, in a batch system, where each batch consists of 10 persons. The center is well equipped with power-operated sewing machinery.

According to The Synthetic Rayon & Textiles Export Promotion Council (SRTEPC), acute congestion at the Nhava Sheva International Container Terminal Ltd. (NSICT) left export cargoes stranded for over a week. Main reasons for this are massive growth in volumes of export cargoes handled by the port and CONCOR's inability to swiftly move import containers.

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