April - June 2012 ( Volume 1, Issue 1)

April - June 2012 6

India’s Presence across the Value Chain

INPUT SUPPLIERS1. Farmers (Naturalfibers likeCotton,Jute)Farmers are backbone of Agriculture industry, and tex-tile base started by agriculture: Natural fibers derived from plant, crops, trees etc.Farmer’s rights are protected through federation, Government Organization, unions. In order to pursue alternative income, some farmers have been incorpo-rated into fair trade markets and others have adopted organic practices and become certified in order to sell their product at higher prices. Other natural resourc-es may also be used as inputs for weaving and other activities in the textile sub-sector, such as alternative fibers (sisal, bamboo, wild silk, natural dyes, etc.), but additional research is needed to provide recommen-dations for improved

2. PetrochemicalsforPolymerfibersPetrochemical industry is relatively young - it did not start to take off until the 1940s. However, its origins go back to the 18th century when coal began to be mined and cheap energy became available. In the next cen-tury it was from gas works and coal tar could become an important source of chemicals. In Britain and Ger-many new industries sprang up making dyes, solvents and rubbers. Polymer fibers are a subset of man-made fibers, which are based on synthetic chemicals (often from petrochemical sources) rather than arising from natural materials by a purely physical process. These fibers are made of phenol-formaldehyde (PF), polyvi-nyl alcohol fiber (PVA) vinylon, polyvinyl chloride fiber (PVC) vinyon, polyolefins (PP and PE) olefin fiber, etc. Easy-care clothing, carpets, curtains and furnishing fabrics are made from man-made fibres derived from petrochemicals.

3.IndustrialCottonGinningCotton Ginning factories and associations play impor-tant role in textile and garment industry. While they note that they are at capacity in terms of meeting ex-

THE VALUE CHAIN IN TEXTILES

IndiaisoneofthefewcountrieswhichhaveapresenceacrosstheentirevaluechainoftheTextileandApparelIndustry.Textile, a versatile basic necessity turns into a luxury brand having a long value chain, where some are direct actors of the chain and others are non value chain actors, which are also equally impor-tant. We will discuss both here in brief, later issues a broader spectrum.

Value Chain Actors

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port demand, they express serious concern regarding losses when selling at world commodity prices.

4. Small-ScaleCottonGinning/SpinningA very limited number of processors are engaged in spinning cotton on a traditional cottage-industry basis. Few businesses have performed small-scale experi-ments in sourcing handspun yarn, developed vertically integrated operations that include the processing of cotton, through to the finished value-added product with labor-intensive processes and with relatively low capital investments. This activity found venue for increasing income in rural areas and implementing appropriate technology practices. Many weavers ex-pressed interest in being able to source raw materials directly from processors, particularly if it allowed them more choices in terms of dyes or fiber content (organic and/ or fair trade, etc.).

5.IndustrialSpinningManufacturers of yarn sell their products both to dis-tributors and weaving workshops in cases where a long-term purchasing agreement has been established. Due to the ever-increasing pricing pressures imposed on imported goods, Government has invested in a range of diversified income-generating activities in order to support their cash flow. These include: screen-printing (on imported apparel), weaving mops from waste fi-bers, importing synthetic thread, etc. They have also invested in direct marketing to end-users, employing their marketing team to promote their products di-rectly to the weaving community. While serving as a survival technique, these activities are not necessarily in the best long-term interest of the company because they do not build on inherent strengths or comparative advantage, and are not able to achieve efficiencies due to insufficient domestic market demand.

6. Importers/VendorsImporters and local retailers provide an essential sup-ply of goods to the sub-sector which includes dyes (for yarn and imported fabrics), fabric (basin/jacquard weaves, commercial cloth for apparel, wax prints, etc.), yarn and thread, tools and equipment, and no-tions (manufactured zippers, clasps, etc. for finishing). There are no protective measures supporting the price of finished goods from local firms.

WEAVERSMajority of the weavers are engaged in their work ei-ther informally or with the backing of many more ad-ditional participants. Weaving activities may not be acknowledged by the statistics due to seasonal em-ployment, migration, and informal employment. Many

looms are produced locally, and located outdoors to accommodate the length of the traditional warp. Pro-duction is therefore weather-dependent and limited by the season. Informal weavers traditionally provide for the needs of special events and do not extend their efforts to markets outside and do not see a need to educate customers or invest in marketing activities.However this demand is declining as more options become available in modern markets. Several weav-ing enterprises and associations have formalized their processes, and their workshop sites to provide more regular working conditions and consistent quality con-trol. Most looms continue to be an evolved version of pit-looms, although floor looms have been adopted by few workshops, and some workshops have incorpo-rated fly-shuttle handlooms to increase productivity. Many workshops also convert the hand-woven fabric into home and fashion accessories, including an abun-dance of handbags and tabletop items.Several weavers expressed interest in developing hori-zontal linkages to increase capacity in order to respond to larger orders and to buy inputs in bulk to reduce costs, but it is unclear if there is sufficient demand for such arrangements and if workshops can maintain consistent quality standards. Weaving studios sell their fabric to others for incorporation into leather trimmed products or finished home accessories or finish prod-uct collections themselves for on-site retail shops or retail buyers.

TEXTILE MANUFACTURE / PRODUCER/ CONVERTERManufacturer include various Leading Actors and ac-tivities, including: formal and informal micro, small and medium-size enterprises, Corporate, independent de-signers, cooperatives, and nonprofit associations. This part of the value chain encompasses the processes of adding value to, or transforming unconverted fabric (e.g. dyed or woven cloth) finished/converted textile products (apparel, fashion accessories, upholstered furniture, etc.) to final end-users. While some actors hold distinct positions along the value chain (such as informal weavers, small dyeing units used as subcon-tractors), many operations often driven by design have incorporated embedded services into their internal op-erations, covering multiple functions in the chain ‘un-der one roof’. Examples include fashion designers who integrate weaving, printing, and pattern-making into their workshop for prêt-a-porter apparel, and interior designer-weavers who have established vertically-inte-grated production that includes custom dyeing yarn, furniture framing for upholstered goods, all the way to direct retail sales, as part of their businesses. Many of these businesses are owned and operated by women


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who have established national and international repu-tations for their work.

TEXTILETREATMENTACTORSTextile treatment includes chemicals, dyes, batik, print-ing etc.A number associations, SME companies are in-volved in treating predominantly imported fabrics, in-cluding such practices as dyeing and hand calendering basin/jacquard textiles for local formal apparel such as resist dyeing (tie-up and batik) or embroidering fabric for fashion and home accessories, crochet, and screen-printing for local consumption and high-fashion. These businesses many times sell their material to tailors, while fashion studios often maintain internal dyeing processes or subcontract for custom orders.

DESIGNER-ENTREPRENEURSIndian designers working in high fashion, home décor, and fashion accessories, play an essential role in tex-tile sub-sector, linking market demands to production and international design sensibilities. Most designers manage their own boutiques and maintain proprietary workshops with in-house production capacity in weav-ing and other material treatment processes (tailoring, dyeing, embroidery, etc.) with established agreements for specific outsourcing needs. They are heavily en-gaged in the promotion of Indian design and the de-velopment of their industries, and have established several noteworthy venues such as fashion reviews and participated in international exhibitions.

MARKET PLAYERSWholesalers/RetailersAt first glance the market is dispersed and divided. Traditional Wholesalers have many clusters across In-dia Eg. M.J. Market in Mumbai. Recently Organized Wholesalers presence in India due to FDI interest in this segment eg. Metro Cash and Carry. , Retailers have 2 segments, Traditional retailers and Organized Retailer which flourished from last decades. eg. Big Bazar. Most relationships along the textile value chain, wholesaler and retailer functions overlap. Many producers retail their own product lines directly and retailers who stock a variety of products (such as hotel shops) commonly buy direct from producers at ex-factory prices.

ExportersMany producers export value-added products directly to international clients Few independent exporters have established their own international clientele and others act as an arm of a foreign importer, providing embedded services to the value chain, such as prepar-ing orders for shipment, providing quality assurance on location and prior to shipping, and implementing new designs requested by the buyer. Individuals also export on a regular basis to world developed as well as

developing countries. These direct export operations may be due to conditions that leave no room for the cost of agents, which typically average an additional 5-15%.

AGENTS/SHIPPERSThey are intermediaries commonly known as “Transi-taires” who play an essential role in export, processing export forms and clearing shipments through Customs, Many exporting producers acknowledge indiscernible and complicated logistics (e.g. related to Customs), and the cost of some of these transactions (formal and informal), but accept the procedures and the interme-diary as a necessary part of the export.

IMPORTERSImporters of textile products have proactively sought to flatten the distribution chain by bringing items di-rect to retail due to the FOB costs of finished goods. These importers often provide embedded services to designers and producers by guiding new product de-velopment, providing trend and market information, and assisting with shipping logistics. Many invest in sourcing visits in order to make product selections and merchandising suggestions directly.

Government:Government plays major role in development in any industry. Especially whole textile is more semi govern-ment industry. Government policy related to textile and garment is not only earn foreign income abut give employment to large population. But industry is not happy with movement of Govt. policy in textile, as per industry view: proper education, resources, research and development is not properly focused in the sector as compare to other sectors.

EducationalInstitutionEducational institute’s plays major role in whole chain, as skilled labor is produced in educational factory. So course content should be matched and updated with industry requirement. Students to employee journey require soft skills, technical knowledge, industry ex-posure, many more. This all needs will be fulfilled by educational industry.

Associations/Cooperatives/NGOsInstitutional interests are several regional and national forums beyond governmental agencies and chambers, including a national membership association Textile activities are often supported through or implemented in collaboration with NGOs in efforts to improve eco-nomic conditions and employment opportunities in India.

Non Value Chain Actors


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InternationalInstitutionsAid to textile industry, an international non-profit organization, could not perform a comprehensive survey of all international programs operating in India with plausible links to the artisan textile sector as part of this assessment. However, there appears to be several initiatives offering services to the textile sector, but with a primary focus on apparel/fashion and industrial production. Other services are provided in human resource development, internet and technology development, agriculture, natural resource management, cultural preservation and the arts, and community development – there are possibilities for collaboration within each of these focus areas.

The infrastructure and conditions which comprise the enabling environment in India provide both support and constraints to economic growth.

EnergyAllactorsalongthevaluechainareaffectedbypoorqualityenergyandweeklypowercutswhichdramaticallyincreasetheircosts.Energyaccountsfortheequivalentof20%oftotalcostsinproductionanddecreasestheirproductivityandtimelydelivery.Alternativeenergysourcessuchassolarandbio-dieselneedtobenotbeendevelopedsufficientlyforlargerscaleneeds.

Legislation/PolicyLabor laws – More concern was voiced in regards to the difficulty of formal employment, required taxes and payments related to that process, and erratic labour laws that forced enterprises to work more informally than they would choose. World Bank data suggests that in relation to other countries, it is difficult, yet inexpensive, to license workers Export/Import – Most value chain actors seemed ambivalent about export processes and requirements and seemed to have found a way to work around some of the constraints related to bureaucratic procedures and corrupt practices in import and export processes.

Capital/Credit/FinancingEstablished medium-size businesses, as well as micro enterprises, find it difficult to find appropriate financing for their business ventures. Interest rates are high and banks are resistant to extend credit to value chain actors, even when they are formal companies with decades of performance history. Many stakeholders also noted that if money is easily obtainable for infrastructure investments, it would greatly enhance their capacity.

Infrastructure and ResourcesTransport, internet technology, and other infrastructural resources impact the growth of the textile sub-sector. Limited resources, such as packing and packaging materials, apparel labels and a broad selection of quality notions impose high costs and compromise the quality of final products delivered to buyers.

SectorOrganizationThe textile sector has formal representation through the national association. However, the lack of coordination between textile value chain actors and support services severely compromises the effectiveness of the sub-sector. Informal weavers have no formal representation even though they make up for the majority of producers in the industry. Producers noted that minimal communication between actors, including raw material suppliers, was the cause for stagnation and even decline in the sub-sector.

Capacity/Skills/HumanResourcesThe textile sector represents a range of substantial human resources, including talented technicians, skilled designers, knowledgeable traders, and dedicated service providers.Tertiary Training – There is limited support in our tertiary system to guarantee the supply of trained individuals in design and applied trades – many of the leading entrepreneurs in the sector have obtained a significant amount of their education in other countries.Language – Due to the innumerous Indian languages, dealing with uneducated laborers, and little know-how of legal language, it is difficult to access broader markets.

Private Sector ServicesValue chain actors noted the marked development of private sector services in recent years that support the growth of their businesses, including graphic arts and technology providers. These services are the key to the development of commercially-viable solutions to challenges in the textile sector.


MacroEnvironmentfactorsinfluencingTextileIndustry

Cotton is a soft, fluffy staple fiber that grows in a boll, or protective capsule, around the seeds of cotton plants .The fiber is almost pure cellulose. The botanical purpose of cotton fiber is to aid in seed dispersal.The plant grows to tropical and subtropical regions, in-cluding the Americas, Africa, and India. The wild cotton species is found in Mexico, Australia and AfricaThe earliest known woven fabrics were those used as shrouds for the Egyptian mummies which were made around 5500 BC.In India cotton is said to be used for over 5000 years.The fiber most often is spun into yarn or thread and used to make a soft, breathable textile. The use of cot-ton for fabric is known to date to prehistoric times;. In-vention of the cotton gin lowered the cost of produc-tion that led to its widespread use, and it is the most widely used natural fibercloth in clothing today.Current estimates for world production are about 25 million tonnes annually, accounting for 2.5% of the world’s arable land. China is the world’s largest pro-ducer of cotton, but most of this is used domestically. The United States has been the largest exporter for many years.Our Mahatma Gandhi described the Process:1. English people buy Indian cotton in the field, picked by Indian labor at seven cents a day, through an op tional monopoly.2. This cotton is shipped on British ships, a three- week journey across the Indian Ocean, down the Red Sea, across the Mediterranean, through Gibral tar, across the Bay of Biscay and the Atlantic Ocean to London. One hundred per cent profit on this freight is regarded as small.3. The cotton is turned into cloth in Lancashire. You pay shilling wages instead of Indian pennies to your workers.The English worker not only has the ad vantage of better wages, but the steel companies of England get the profit of building the factories and machines. Wages; profits, all these are spent in England.4. The finished product is sent back to India at Euro pean shipping rates, once again on British ships. The captains, officers, sailors of these ships, whose wages must be paid, are English. The only Indians who profit are a few lascars who do the dirty work on the boats for a few cents a day.

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NaturalFiber:TheBeginningofTextiles

COTTONTop10CottonProducers:2011

(480poundbale)

1. China: 33.0 million bales

2. India: 27.0 million bales

3. USA: 18.0 million bales

4. Pakistan: 10.3 million bales

5. Brazil: 9.3 million bales

6. Uzbekistan: 4.6 million bales

7. Australia: 4.2 million bales

8. Turnkey: 2.8 million bales

9. Turkmenistan: 1.6 million bales

10. Greecee: 1.4 million bales

Thefiveleadingcottonfiberexportersin20111) U.S.A, 2) India, 3) Brazil, 4) Australia, 5) Uzbekistan.

Largest Non producing ImporterKorea, Taiwan, Russia, Hong Kong and Japan

In India, the states production of cotton is Maharashtra (26.63%), Gujarat (17.96%) and Andhra Pradesh (13.75%)

FIBER

5. The cloth is finally sold back to the kings and landlords of India who got the money to buy this expensive cloth out of the poor peasants of India who worked at seven cents a day. • History of cottonAnimal skins and hides, and barks of some tree spe-cies were probably the earliest materials used by pre-historic human beings to cover their bodies.The earliest known woven fabrics were those used as shrouds for the Egyptian mummies. These shrouds are considered to be made around 5500 BC although some authorities claim these were older (12000-10000 BC) and made of linen.• History of cotton in IndiaIn the past, ideas and details of events were passed on through generations orally ratherthan in writing. It is therefore difficult to pinpoint when the use of cotton began in India.Nevertheless, there is enough scientif-ic evidence to trace that cotton has been used in India for over 5000 ears. The speculations about the earliest use of fibres from cotton in the Indian subcontinentwere set at rest with the discovery of cotton materi-als in the excavations at Mohenjodaroin the Indus Val-ley carried out during the 1920’s. In these excavations, well-preserved fabrics of cotton were discovered in sil-ver vessels Until the middle of the 18th century, only indigenous arboreum and herbaceum varietiesof cotton were grown in different regions of the coun-try. Due to the human skills and dexterity of the local artisans, very fine yarns were produced by them, from even theshort staple and coarse cottons grown in In-dia.• Introduction of Cotton production in India The In-dian cotton production was about 14 Million bales around year 2000 and the same was termedas most contaminated cotton in the world due to vari-ous deficiencies in production but nowThe increase in cotton production has been achieved mainly due to following factors:1. Increase in area under cultivation of BT Cotton Seed.2. Commensurate increase in required ginning capacity with addition of cleaning capabilities.3. Introduction of Technology Mission on Cotton and efforts by research agencies like CIRCOT.4. Government Policy of minimum support price. Out of the above four factors the Bajaj Steel Industries Limited Nagpur as largest and modern manufacturer of cotton ginning, pressing, delinting & decorticating and other cotton processing machinery has played a vital role to achieve the ranking..

• Current Scenario & Journey So Far:With the increase in cotton availability the demand for better quality cotton fibres nearer to that of hand ginned cotton in adequate quantity became the chal-lenge before the cotton ginning & pressing machinery manufacturers in India and the optimization of the process cost with higher outturn was necessitated to face the intense competition.The Indian Cotton Mills which use to accept cotton with higher trash started demanding best qualitycotton, the smaller labour intensive ginning factories started finding it difficult to achieve economyagainst composite ginning & pressing factories being setup under Technology Mission on Cotton andTechnology Up-gradation Fund. This has thrown a fur-ther challenge before the Cotton Ginning &Pressing Machinery Manufacturers to produce high quality Cotton Ginning, Cleaning & PressingMachinery in adequate quantities. M/s. Bajaj Steel In-dustries Limited geared up to meet thechallenge and provided best solutions to meet com-plete demand.The selection of right machinery to achieve the highest cost efficiency with best fibre parameters andto standardize the cotton ginning & pressing technol-ogy was another challenge before the IndianCotton Ginning & Pressing Sector. Thus it was neces-sary to carefully compare the various optionsavailable. In the selection of cotton ginning & pressing machinery in India • The unique way of preservation of history of cotton The CottonMuseum,is set up at Memphis, Tennessee, U.S.which is an historical and cultural mu-seum that opened in March 2006 on the former trad-ing floor of the Memphis Cotton Exchange at 65 Union Avenue in downtown Memphis. The mission of the Cotton Museum is to share the story of the cotton in-dustry and its many influences on the daily life, arts, and the development of the Mid-South region.The museum highlights artifacts through interpretive exhibits, educational programs, and research archives that help tell the story of cotton and cotton trading, from crop to becoming fabric.The Cotton Museum preserves the history of the cot-ton business and its impact on economics,history, soci-ety and culture, and science and technology. The museum’s exhibits are appropriate for field trips for middle schoolers and older, and provide visitors context for other attractions in the city.


FIBER

Introduction:One of the most spectacular events in the Indian textile scenario in the first decade of the current century has been the modernization of gin-

ning industry which, for many years had remained in a decadent state. The Technology Mission on Cotton (TMC), a subsidy scheme launched by the Govt. of In-dia in February, 2000 had a component referred to as Mini Mission IV for modernization of ginneries through which as many as 850 Ginning & Pressing (G&P) units were upgraded or newly set up till the scheme ended in December 2010. Although this number fell short of the target of 1000 ginneries set by the Textile Ministry, the effort made by the Cotton Corporation of India, the implementing agency for Mini Mission IV, has been hailed as a veritable success, judging by the quantum jump in cotton quality acknowledged by consuming spinning mills. In the early years of TMC, the setting up of a new G&P unit was accepted as an economi-cally viable proposition. Machinery costs were low, civil construction costs were moderate and labour was cheap and easily available. Electricity cost was also reasonable. A ginnery of average level of technology with a production capacity of 100 bales per day could be set up on an available land with an investment of Rs.150 lakh. With TMC’s capital subsidy of Rs.27 laklh, the nett investment was just Rs.123 lakh which could fetch a reasonable profit for a factory owner even if he did only job-work for cotton traders. The profit margin was predictably much more if the ginner chose to do trading in cotton by purchasing kapas, gining it in his own factory and selling the bales to spinning mills or to other traders. Today, 12 years after the launch of TMC, many things have changed. Ginning machinery costs have escalated. So have civil construction costs. Wages too are far more than what they used to be ten years ago. Electricity bills are also higher. Despite a significant increase in processing charges for each bale received by the job-working ginner, he is unable to make a reasonable nett profit. Even with the subsidy of Rs.50 lakh offered under the NABARD Scheme, in-vestment in a ginning unit solely for job work is not economically viable. This article is an attempt to work out the current cost burden the investor has to bear while setting up the G&P unit and the recurring expen-diture he has to incur. It is shown that high-investment ginneries cannot survive through job work alone.EconomicsofaStandardGinnery(100balesperday)a)CapitalInvestment:A ginnery with 18 Jumbo DRs which can produce lint equivalent to about 8 bales in an hour, accepted by TMC as a standard unit, is consid-ered here for working out the economics. Pre-cleaner

and lint cleaner should be of reasonable quality. A combination of pneumatic suction, belt conveyor and trolley system for kapas to be fed to each gin as well as fully pneumatic conveyor for lint from ginning ma-chines to the on-line bale press are also presumed to be set up at the factory used in the analysis. The bale press would be an auto-loading, auto-tramping, 2-box machine. There would be on-line moisturizing facility through steam condensation system for lint and nozzle system for kapas. Seed conveyor and Weigh Bridge are also parts of essential components of a modern gin-nery. Civil structures will include, gin-press hall, open platforms for kapas, seed and pressed bales, bale go-down, fire fighting system comprising hydrants, wa-ter tanks and pumps, CC road etc,. which are normally considered as essential components of a G&P unit. In addition, a factory will also need office block, labour quarters and boundary wall for proper functioning of the establishment.b)LabourandElectricityExpenses:Since the factory considered here is one with auto-matic conveyor systems and on-line automatic baling press, the labour involvement is minimal. With just 21 labourers, including skilled and unskilled ones work-ing during each shift for a wage of Rs.150/-, the labour cost per bale comes to Rs.50.The total electric power of ginning machines (90 HP), conveyor systems (140 HP) and baling press (70 HP) in the unit is 300 HP. Electricity cost works out to Rs.104 per bale which has 3 components namely cost of gin-ning (Rs.38 per bale), cost of conveyance (Rs.55 per bale) and cost of pressing (Rs.11 per bale). A power cost at the rate of Rs.6 per unit (KWH) has been as-sumed for the calculations.c)TotalProcessingCostperBale:Other expenses include bale covering cloth (Rs.35 per bale), plastic straps (Rs.35 per bale), machinery main-tenance (Rs.20 per bale), lubricants (Rs.10 per bale) and miscellaneous overheads (Rs.20 per bale). With contribution from all these components, the process-ing expenses totals up to Rs.274 per bale which also includes labour and electricity costs against the job-work rate of Rs.700 per bale received by the ginner from traders or spinning mills for whom the ginnery undertakes ginning and pressing work.d)AnnualCostofCapitalInvestment:Capital cost of investment in the ginnery involves ma-chinery and civil structural components. For the fac-tory considered for discussion, these are Rs.240 lakh and Rs.130 lakh respectively, totaling upto Rs.370 lakh of gross capital investment (Table 1). Let’s assume that


COTTONGINNING

JOBWORKUNECONOMICALFORMODERNGINNERIES?S. Ulaganathan, Director(EPQA) & Dr. K.R.K. Iyer, Consultant Textiles Committee, Mumbai

the factory is entitled to receive a subsidy of Rs.50 lakh such as the one dispensed by NABARD. The nett in-vestment would then come down to Rs.320 lakh. If interest on borrowings is taken as 13% and, assuming a depreciation of 12%, the annual recurring cost of the nett investment of Rs.320 lakh will work out to Rs.80 lakh.e)ReturnsfromJobWorkattheGinnery:If the factory is dedicated to job-work and is process-ing traders’ cotton, the factory owner would receive Rs.700 per bale, at today’s prevailing rates. The fac-tory’s annual turn-over and net profit will depend on the number of bales processed in a season.Three cases are considered here namely 15,000, 20,000 & 25,000 bales processed in the unit, in a season (Oc-tober to April). The income at the rate of Rs.700 per bale is to be matched against the sum of processing cost (Rs.274 per bale) and the capital cost (Rs.80 lakh per annum). The nett profit has been shown in It is obvious from the data in Table 2. that the factory will earn a reasonable profit (Rs.26.50 lakh), only if it processes 25,000 bales. At 20,000 bales, it will just break even. If the bales are fewer, the factory will lose heavily. On the other hand, if over 25,000 bales are turned out, the profit margin can be quite attractive. But it is very unlikely that a factory could manage to get such large job-work contracts in a season.CanGinningbeMadeRemunerative?In the wider national interest of providing quality cot-ton to textile mills, it is essential that ginning is viewed as a sector deserving support from the Government. Subsidies through fresh schemes on the lines of TMC with a threshold of Rs.50 lakh, tax holiday, exempting ginning machinery from Excise Duty liability etc. would make investment in ginning an economically meaning-ful proposition.AlternativesBeforetheGinner:Discussions above tend to suggest that job-work would not bring significant returns from investment in a G&P unit. Two options are available for the factory owner:i) Be a cotton trader besides being a ginner.ii) Restrict the size of investment by opting for a lower level of technology for the machinery.To begin with, a factory owner could earmark 50% of the days for job-work while the remaining days could be used for ginning his own cotton. Of course, raising working capital, understanding the nitty-gritty of seed cotton purchase, and learning the nuances of market-ing bales would be formidable challenges for a new entrant. For the second option of reducing the size of capital investment, the ginner will have to content with belt conveyors for lint as well as kapas, nozzle spray system instead of steam system for moisturizing lint, semi-automatic bale press, minimal size for civil

structures etc.HowTradersandTradingOrgnizationsCanHelp:Job work charges per bale should be linked to the technical features of the ginnery such as the quality of machines, degree of automation, and excellence of civil infrastructure. Differential job-work rates will be justified inasmuch as the level of modernization of the factory will directly impact on the quality of baled cot-ton. It will be equally appropriate for a good factory to demand higher processing rate. It will be also benefi-cial for the traders and trading organizations like CCI to pay more and get their cotton processed in a factory of superior level of modernization. Ginners’ associations and trade organizations should come together for an introspective discussion on this matter.StarRatingofGinneries:A mention of Textiles Committee’s Star Rating Scheme for G&P units becomes relevant here. Ratings rang-ing from “Single Star” to “Five Star” assigned by Tex-tiles Committee to modernized ginneries will reflect the technical excellence of the G&P factory and would serve as a measure of the quality of cotton bales that could emerge from the unit. The rating scheme is be-coming popular among the ginners, spinners and the trading community.Already about 400 units have been assigned star rat-ings. Many others are in the process of being assessed. By the end of this current season, over 500 units would have been rated. Both cotton traders and spinning mills stand to benefit a good deal by making use of the information on rated units available on Textiles Com-mittee’s Website. The differential ginning-pressing rate for job work discussed in the last paragraph should be appropriately fixed in on the basis of the star rating accorded to each unit. Summary&Conclusions:i) At current rates, the cost of processing a bale of cotton in a modernized ginnery works out to Rs.274/-.ii) An investment of Rs.370 lakhs on a ginnery of a high level of technology even with a subsidy of Rs.50 lakh would translate into annual cost of Rs.80 lakh to-wards interest and depreciation.iii) With current ginning charges set at Rs.700/- per bale, a job working ginnery will make no profit even with 20,000 bales processed in one season.iv) Only if the ginnery processes 25,000 bales or more will it earn reasonable returns from the investment.v) Generous Govt. subsidies on the lines of TMC, ex-cise duty exemption for ginning machines, tax holidays, fixing ginning-pressing rates in relation to Star Rating status of G&P units, etc. are steps that will (a) enable a job-working ginnery to make profit and (b) provide impetus to sustained investment in the ginning sector.


COTTONGINNING

April - June 2012

TEXTILE Value Chain

14

COTTONGINNING

Table1:Capital Investment for an Automatic G&P Factory


COTTONGINNING

Table2:EconomicsofaModernG&PUnit

To feel more Cotton go through following website…• International cotton association : http://www.ica-ltd.org

• National cotton councils of America http://www.cotton.org

• Cotton corporation of India http://cotcorp.gov.in

• China Cotton association http://www.acfsmc.cn

• Sustainable Cotton Project http://www.sustainablecotton.org

• Cotton Marketing Directory : Cotton on net : http://www.cotton-net.com/

• Central institutes of Cotton research http://www.cicr.org.in/

• The Cotton Museum http://www.memphiscottonmuseum.org/

• International Cotton Advisory Committee : http://icac.org/

• Cotton Association of India : http://www.caionline.in

• CRN INDIA http://www.crnindia.com

• The cotton tradeindia http://www.cottontradeindia.com/

• Cotton Outlook http://www.cotlook.com/

Where is your company stand in entire Value chain?We are ginner. We purchase raw material, seed cotton from farmer, process it mechanically.What will be the growth of Textile industry according to you in terms of Opportunities, Revenues, Exports, Foreign investments etc?Industries growth is good. Because now a days due to awareness and increase the financial capacity of the people, they pay more on cloths and other cotton ac-cessories. In our ginning industries foreign investment till today is Nil. The Scope of Exports is too good be-cause we are the second largest in big raw cotton ex-porter country after USA.

Why is Textile industry so fragmented or Unorganized? India has two major states Maharashtra and Gujarat where farmer grow the maximum cotton in their farms. Ginning units is established near seed cotton growing area. But most of spinning mills located in north and south part of India, but some mills only doing Part pro-cessing like few doing spinning, few doing knitting, few doing weaving etc but it is very difficult to find the full process of Textile mills because of heavy investment, uncertain market, government interference and short-age of labors and electricity. That is why the Textile in-dustry so unorganized. Why there is gap between Organized and unorga-nized sector?Specially Textile industry have huge investment be-cause it is agriculture based industry, crop come once in a year, that is why all processor of Textile industries like ginning and knitting and have to store raw materials as per the season and to process after it. Price fluctua-tion during this process has to bear by the processor.

Where in organized industries all channel are continuous, they set constant margin, less blockage money etc.Do you feel the Gap between Textile industry and Textile Education Industry? If yes why?Not Really in my industry. But yes, when we go up in a lad-der of value chain we have a Gap.How we can reduce or mini-

mize the gap between the two (Industry and Educa-tion)?To established new textile colleges.To start some private training center and institute. Aware the student with industries like regular visit, some project work, Training, Good compensation from industry to attract student to join this industry.


INTERVIEWWITHGINNER

ExclusiveInterviewgivenbyMr.DivyeshM.DofKUTCHGINNINGANDSPINNINGPVT.LTD.We had asked few questions about Textile industry and Associated with the industry. He explain the process of

Ginning Value chain Seed Cotton Drying and Cleaning Ginning Cleaning/Packing Transport AdminInputresourcesare:Material,Labor,Electricity,Maintenanceparts,Equipments.Mr.DivyeshExpressedhisviewaboutgrowthpathandGDPofIndianTextileindustry. “GovernmentLacksdue tononreserve fundof textile industry. Industrylacksduetolessmarginofbusiness.”


TextileindustryisinneedofPeopleanditsTraditionalindustry,butEducationcollegesarenotfocusinganddevelopingasanorganizedwayascomparetoothercoursesofferedinIndia?Yes definitely, Government needs to take some steps for that like,Grant some subsides to students and col-leges to join and start the courses. Also give assurance and job guarantee. Textile industries also do campus visit and arrange campus interviews and bind them for a job.Current market where Management Institutes flour-ishing in country, but very less Organized Textile Tech-nical Training institutes is there? Does industry do not require technical people or have less demand /sup-ply?Each and every industry requires skilled and active people who work smartly. Most of the workers and en-gineers come to this industry with different knowledge; they learn and gain work experience. But our industry didn’t give high salary to people who working due to uncertain margin in this industry as compare to other industry. After experience, most People leave this in-dustry and switch over to other industry. That is why less institutes of textile due to less interest as terms of monetary, Unorganized Culture, many more.

Government and Manufacturer are important aspects of value chain. In which area both lacks in growth path of industry and education?Government lacks due to non- reserve fund of textile industry. Industry lacks due to less margin of business.Textile is old, 2nd rank industry after Agriculture but still in terms of Exports still we are not having leading position in World? What is the Reason?Due to government policies as compared to other countries and having less support of Government we are not having leading position in World. Solutions for Textile industries is that government should give some subsidy in export, established plant ,bank facility etc. as compare to other country textile industries, then only we stand at a international level, otherwise today we are seeing situation which will be more worse in the future.We had seen ginner’s mix reaction about the industry. We really have to push up our socks for this industry to grow, make Worlds and India’s best industry to work with. Only cursing Government will not help, need to take involvement actively in the industry.

INTERVIEWWITHGINNER


COTTONATCOMMODITYMARKET

Cotton now at Commodity Market

Cotton is one of the major Cash Crop of India. Be-ing a fiber crop, it is primarily used as a raw mate-rial for textile industry(55-60% of requirements).

Because of its wide scale of usage, it happens to be one of the most traded commodities in the World. India invariably ranks 2nd/ 3rd in terms of produc-tion, and is also the 2nd largest exporter in the world. Hence, Indian prices depend not only on domestic, but also international demand & supply scenario, and are interlinked with global pricesVOLATILITY IN COTTON PRICESCotton prices are known to be extremely volatile, with 16.6% average annualized volatility observed in do-mestic markets, and 30.6% in international markets. Prices of raw cotton for the season 2010-11, jumped 142% to ` 6,900 a quintal from a year ago in early Feb-ruary due to short globalsupply despite record domestic produce of 325 lakh bales of 170 kg each. Prices remained at elevated level through April, post which it moved to a downward spi-ral bottoming out to 3,300 per quintal by June, due to export restrictions imposed by Govt., and absence of off take from the marketNEED FOR PRICE RISK MANAGEMENT HEDGINGHigh spot price volatility, both in domestic and interna-tional markets, poses enormous amount of price risk to all the categories of participant involved in the value chain of this broad commodity, be it Ginners, Spinners, Textile Mills, Exporters, or Traders. In 2010-11, when prices moved bylarge multiples bothways, registering a volatility of 23%, itintensified the risk of losses to all the value chain participants. Result, as we all know, were huge losses suffered by trade, coupled with a re-cord number of defaults on bilateral contracts in the physical market. As per press reports, total disputes quintupled to 10% of total cotton contracts globally. This makes a case for an appropriate instrument to mitigate price risk. Futures contracts in Cotton, as of-fered by NCDEX, are aimed to fulfill this need of the trade participants.COTTON FUTURE CONTRACTCommodity exchange which offers trading in 25 odd agricultural commodities, with a cumulative average daily trading volume of more than 6,000 Crores. It of-fers futures trading in Kalyan Kapas (V797) and Shan-kar Kapas varieties of cotton.1. Futures trading would help all the value chain participants to effectively hedge their price risk by allowing the opportunity to take positions in advance so as to counter the unexpected adverse price movement.2. Additionally, the futures contracts allow for efficient risk management by allowing high leverage This means that you need to pay only a small fraction of the value of contract as ‘margin’ to execute a trade.

3. Daily marking to market of positions minimizes risk of default by trade participants4. Foremost, presence of a central counterparty for an exchange traded futures contract ensures performance of the contract obligation5. With an average daily trading volume of around` 100 Crores (or 5000 contracts), and an open interest of around 8000 lots, NCDEX Kapas happens to be the benchmark and only liquid futures contract of Cotton in India today.How Hedging is done? - An exampleA Ginner needs to procure 50,000 MT of Raw Cotton, sometime in the end of Dec, as per his production schedule.He intends to produce lint and further sell it to the Textile Mills, with whom he has a contract at a pre-agreed price. Now, if the prices of Raw Cotton rise in the month of Dec, his profit margins might shrink, or he may even run into losses. He can reduce this Price Risk, by means of hedging his Raw Material require-ment, at NCDEX platform. Let us assume that, on current date, the Ginner finds that:Spot Price of Shankar Kapas =1100.00/ 20 Kgs Dec Futures Contract on NCDEX = ` 1400.00/ 20 KgsHe buys the Dec expiry contract at NCDEX on current date. On 30th Dec (i.e. on the day of expiry of contract), 2casesmayarise:Case1: Spot price increases to 1450.00On final settlement, MTM Profit = 50.00Buying Price = 1450.00 Effective price = 1450.00 - 50.00 = 1400.00Case2:Spot price decreases to 1350.00 On final settlement, MTM Loss = 50.00Buying Price = 1350.00 Effective price = 1350.00 + 50.00 = 1400.00Therefore, irrespective of the Spot Price movement, his Effective Purchase Price, and hence his Profit Margin, remains locked-in. This is called Hedging.Why Hedging is NOT same as Speculation or Gambling? Hedging, Speculation & Gambling are three different things. Gambling is when you yourself create a risk that didn’t exist in its own, like betting your money on a game of cards. Speculation on the other hand, is taking up an existing risk (not creating one), with the intent to benefit from it, like taking on market risk in order to benefit from price movements. And Hedging is a transaction to reduce the exposure to any market risk, so that one can focus on core business activities.

“Hedging is definitely NOT Speculation, but NOT Hedging can be Speculation”

Reference:www.ncdex.com


FLAXFIBER

DescriptionLinen (flax fabric) is made from 100% natural flax fi-bers. This fiber is one of the oldest used in textiles for the home & clothing. Linen is a fiber, having length from 25-150cm and average 12-16 micrometers in diameters. it has two verities (1) shorter tow fibers, used for coarser fabrics and (2) longer line fibers, used for finer fabrics. The construction of the flax fibre is a hollow cylinder, called the lumen. History Linen has been used from past 20th century; a linen handkerchief was a standard decoration of a well-dressed man’s suit during most of the first part of the 20th century. in the past, linen was also used for books. Due to its strength, in the Middle Ages linen was used for shields and gambeson, much as in classical antiqui-ty it was used to make a type of body armour, referred to as a linothorax. (Also because of its strength when wet) Irish is a very popular wrap of pool/billiard cues, due to its absorption of sweat from hands.

Properties1. Linen fabric feels cool to the touch. It is smooth, making the finished fabric lint free, and gets softer the more it is washed. 2. Linen fabrics have a high natural luster; their natural color ranges between shades of ivory, ecru, tan, or grey. The color of natural flax linen ranges from cream to brown. Pure white linen is created by heavy bleaching. 3. It is a very durable, strong fabric, and one of the few that are stronger wet than dry. The fibers do not stretch and are resistant to damage from abrasion..4. Linen is relatively easy to take care of, it can be dry cleaned, machine washed or steamed. It can withstand high temperatures, and has only moderate initial shrinkage.5. This fabric is crisp and starchy, becoming softer over time.6. The appearance can range from matt to luster.Applications1. Over the past 30 years the end use for linen has changed dramatically. Approximately 70% of linen production in the 1990`s was for apparel textiles, whereas in the 1970s only about 5% was used for fashion fabrics.2. Linen uses range from bed and bath fabrics (tablecloths, dish towels, bed sheets, etc.), home and commercial furnishing items (wallpaper/wall coverings, upholstery, window treatments, etc.), apparel items (suits, dresses, skirts, shirts, etc.), to industrial products (luggage, canvases, sewing thread, etc.)..


FLAXFIBER

3. Paper made of linen can be very strong and crisp, which is why the United States and many other countries print their currency on paper that is made from 25% linen and 75% cotton.4. Currently researchers are working on a cotton/ flax blend to create new yarns which will improve the feel of denim during hot and humid weather5. Linen fabric is one of the preferred traditional supports for oil painting. In the United States cotton is popularly used instead, as linen is more expensive than cotton, so now linen is more limited to European painters. Linen is preferred to cotton for its strength, durability and archival integrity.

Advantages• Natural antibacterial & antifungal properties.• Protection from UV rays.• Excellent anti allergenic characteristics.• Excellent anti static characteristics.• Will not attract or trap dust particles.• Good sound insulating & acoustic properties.• Able to absorb a large amount of water & moisture (own dry body weight).• Absorption ability allows for a wide range of permanent dyes to color the textile.• Quick drying material.• Easily refreshed by washing.• Ability to retain shape after washing as it does not hold elastic properties.• Known as one of the fibers that holds the most heat resistance.• A thermal/cooling regulating fiber which allows skin to breathe – keep you cool in the summer and warm in the winter.

Disadvantages• Acid is known to disintegrate flax fibers.• Flax fibers are easily ignitable and burn quickly due to the cellulose content.• Heat resistant properties will deteriorate the natural oils which hold the cells together when exposed to steam and hot water over time - Consider this point when washing & cleaning linen.

ProducersFlax is grown in many parts of the world, but top qual-ity flax is primarily grown in Western Europe. In very recent years bulk linen production has moved to East-ern Europe and China, but high quality fabrics are still confined to niche producers in Ireland, Italy and Bel-gium, and also in countries including Poland, Austria, Belgium, France, Germany, Denmark, Lithuania, Lat-

via, the Netherlands, Italy, Spain, Switzerland, Britain , Canada and Kochi in India. High quality linen fabrics are now produced in the United States for the uphol-stery market.

Renewable• A 100% renewable and abundant natural resource.• The flax crop has a quick growing cycle.

Environment & Health• Crops of flax require up to 5 times less use of fertilisers and pesticides when compared with cotton crops.• The entire flax crop is used - no waste is created during harvesting.• Flax farming does not damage the earth beneath and is not hazardous to eco systems.• Processing does not use as much energy or chemicals compared with artificial textile fibre processing.• Look for natural,chemical free, untreated and uncoloured linen for the truest eco credentials check with the manufacturer for details.• In untreated state, holds no associated health risks. Performance• The strongest & most solid textile fibre known.• Similar tensile strength qualities as some types of steel.• Strength increases when damp or wet.• Excellent resistance to pill. Disposal / Biodegradable• 100% biodegradable without treatments.

Cost• Good quality linen can be more expensive than comparable fabrics.

April - June 2012

TEXTILE Value Chain

22

YarnManufacturingProcess Open End……………………………………………......open end yarn

Cotton Mixing… blow room…Carding…. Drawing….ring frame…. winding …..carded yarn

Combing… drawing…ring frame…winding…carded yarn

YARN

Yarn is a long continuous length of interlocked fibers, suitable for use in the production of textiles,sewing, crocheting, knitting, weaving,

embroidery and ropemaking. Thread is a type of yarn intended for sewing by hand or machine..Embroidery threads are yarns specifically designed for hand or machine embroidery.

ManufacturingMethodYarns are made up of a number of singles, which are known as plies when grouped together. These singles of yarn are twisted together (plied) in the opposite di-rection to make a thicker yarn. Depending on the di

rection of this final twist, the yarn will be known as s-twist or z-twist. For a single, the direction of the final twist is the same as its original twist.TYPESOFYARNS1 Spun yarn is made by twisting or otherwise bonding staplefibres together to make a cohesive

thread, or “single.”Twisting fibres into yarn in the process calledspinning and yarn spinning was one of the very first processes to be industrialized. Spun yarns may contain a single type of fibre, or be a blend of various types. Combining synthetic fibres with natural fibres is very rare. The most widely used blends arecotton-polyester and wool-acrylic fibre blends. Blends of different natural fibres are common too, especially with more expensive fibres such as alpaca, angora and cashmere. Yarns are selected for different textiles based on the characteristics of the yarn fibres, such as warmth (wool), light weight durability or softness .Acrylic yarn is the least expensive.2. Filamentyarn:consists of filament fibres either twisted together or only grouped together.. Silk is a natural filament, and synthetic filament yarns are used to produce silk-like effects.

YARN STRUCTURE

S- And Z Twist Yarn

April - June 2012

TEXTILE Value Chain

23

YARN

3. Texturizedyarns:are made by a process of air tex turizing , which combines multiple filament yarns into a yarn with some of the characteristics of spun yarnsColorYarn comes in many colors Yarn drying after being dyed in the early American tradition, at Conner Prairie living history museum.Yarn may be used undyed, or may be colored with nat-ural or artificial dyes. The colours can be very pretty Most yarns have a single uniform hue, but there is also a wide selection of variegated yarns: HEATHERED OR TWEED: yarn with flecks of different colored fiber OMBRE: variegated yarn with light and dark shades of a single hue MULTI-COLORED: variegated yarn with two or more distinct hues (a “parrot colorway” might have green, yellow and red) SELF-STRIPING: yarn dyed with lengths of color that will automatically create stripes in a knitted or crocheted object MARLED: yarn made from strands of different- colored yarn twisted together, sometimes in closely related huesMeasurement

A comparison of yarn weights (thicknesses): the top skein is aran weight, suitable for knitting a thick sweater or hat. The manufacturer’s rec-

ommended knitting gauge appears on the label: 8 to 10 stitches per inch using size 4.5 to 5.1 mm needles. The bottom skein is sock weight, specifically for knit-ting socks. Recommended gauge: 5 to 7 stitches per inch, using size 3.6 to 4.2 mm needles. These yarns are manufactured in Japan and have variegated colours in a random-dyed pattern. “SOME OF THE STANDARD MEASUREMENTS USED IN WORLD”• Yarn quantities are usually measured by weight in ounces or grams. In the United States, Canada and Europe, balls of yarn for handcrafts are sold by weight. Common sizes include 25g, 50g, and 100g skeins. Some companies also primarily measure in ounces with common sizes being three-ounce, four-ounce, six-ounce, and eight-ounce skeins. These measurements are taken at a tandard temperature and humidity, because yarn can absorb moisture from the air. The actual length of the yarn contained in a ball or skein can vary due to the inherent heaviness of the fibre and the thickness of the strand; for instance, a 50g skein of lace weight mohair may contain several hundred metres, while a 50g skein of bulky

wool may contain only 60 meters.• There are several thicknesses of yarn, also referred to as weight. This is not to be confused with the measurement and/or weight listed above. The Craft Yarn Council of America is making an effort to promote a standardized industry system for measuring this, numbering the weights from 1 (finest) to 6 (heaviest).• A more precise measurement of yarn weight, often used by weavers, is wraps per inch (wpi). The yarn is wrapped snugly around a ruler and the number of wraps that fit in an inch are counted.• Labels on yarn for handicrafts often include information on gauge, known in the UK as tension, which is a measurement of how many stitches and rows are produced per inch or per cm on a specified size of knitting needle or crochet hook.• In Europe textile engineers often use the unit tax, which is the weight in grams of a kilometre of yarn, or decitex, which is a finer measurement corresponding to the weight in grams of 10 km of yarn. • Some yarn retail stores try to help the customer choose yarn by attaching a sample knitted square to the shelf holding each display of a particular weight of yarn, sometimes provided by the manufacturer. These samples are knit in the industry standard four-by-four inch/ ten-by-ten centimeter gauge. Samples help the buyer by showing them the texture and thickness of the finished knit fabric.


YARN MANUFACTURERS INTERVIEWDam

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MD.M

r.AnilB

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Mr.Abh

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r.Aditya

WheredoesyourcompanystandintheentireValuechain?We are at the second stage of the textile value chain. We convert the fibres into yarn form by way of spinning natural or man made fibres. Yarns are also produced by conversion of polyester chips to yarn. We as a company are into value addition of yarns. We are known in the industry to provide fancy yarns made out of different combination of fibres or different kind of effects giving a unique look to the fabric. We cater to almost all segments of the traditional textiles like suit-ing, shirting, home furnishing and knitting with our novelty products.

Howisthetextileindustrygrowth?Withreferencetoopportunity,revenue,exports,foreigndirectinvestment(FDI),etc?Textile industry is a very labour intensive and high capital invest-ment business. India has ample cheap skilled labour in comparison with other developing or developed countries. Consumption is in the developed countries and manufacturing is shifting to countries like Vietnam, India, China etc. India is the 2nd largest producer of cotton and cotton yarn in the world. Finished garments, Technical Textiles, Home Textiles, and Yarns - all have a great scope for ex-ports. Foreign Investment is required in technical know-how. There is lot of opportunity in joint ventures with international companies which still remains largely uncapped.

Whyisthetextileindustrysofragmented?Orunorganized?Textile industry has absolutely no barriers for entry and exit. Any player can enter at any scale, at any point in the textile value chain. Textile industry has developed in many parts of India, starting from south - Tirupur, Coimbatore, Bengaluru, Ichalkaranji, Bhiwandi, Su-rat, Bhilwara etc. Too many players and multiple locations is the main reason for it being unorganised.

Whyisthereagapbetweenorganizedandunorganizedsector?As mentioned earlier, Textile Industry is a high capital intensive in-dustry having long pay back periods. It is easier for large organised players to raise capital for expansion in comparison with small play-ers. This is the main reason for the gap.

Exclusive Interview with DAMODARGROUPM.DMr.AnilBiyani: 25 years of experience with qualified in textile from Sasmira college and Bachelors in human ecology.Mr. Aditya Biyani: BMS Graduate with Masters in Family Business Management and four years of Business experienceMr.AbhishekBiyani: BE Graduate with masters in Family Business Management, 3 years of business experience.

They had shared their views about FDI in textile “FDI required in technology and there are lot of opportunity in Joint Venture with international companieswhich is still remains uncapped.”Also they had expressed that “Textile industry has no barriers for entry and exit, any players can enter at any scale and any point in textile value chain.”

DoyoufeeltheGapbetweenTextileindustryandTex-tileEducationIndustry?Ifyes,why?Textile is not yet a white collar job and the youth today wants the white collar job. Every engineering student aspires to work in IT or in Automobile companies where they can get a good package. In comparison to those industries, Textile is yet not a good pay master and hence becomes less lucrative to the youth. With the development of industries like automobile, software, real estate, retail, a lot of graduates prefer to work in these industries since they seem to be more lucrative. Due to this a lot of graduates are from mechanical and software backgrounds. Howcanwefulfillorminimizethegapbetweenthetwo(industryandeducation)?Textile industry has never been a lucrative industry. Media (magazines, newspapers and news) always talk about software, finance, retail, steel, power and other sectors. For colleges and institutions to develop, me-dia has to play a vital role in creating awareness of the same. Government can also play a major role in creat-ing awareness of the textile industry. Current Market where Management institutes areflourishingincountry,butverylessorganizedTextileTechnical Training institutes. Does industry not re-quiretechnicalpeopleorlessdemand/supply?This industry like any other requires the technical and non technical qualified people. The reason of not hav-ing is a result of the lack of awareness amongst the new generation and the same could be done by the media. Textile is second only to agriculture in employ-ment and also contributes to a major portion of the GDP. The number of colleges and courses are less be-cause the youth is not that aware of this industry and the media has always spoken about IT, finance, auto-mobile etc sectors. If media creates awareness we are sure we will have the youth opting for the same as it’s a fashion industry.GovernmentandManufacturersareimportantactorsofvaluechain.Inwhichareabothlackingrowthpathofindustryandeducation?For any industry to grow, stable government policies and basic necessities are required to run efficiently. All this must be made available by government. Today In-dia is facing huge problem of power shortage which is hampering output and affecting financial position of the industry. Innovation is required at the manufac-tures end to stay ahead of competition. Leading posi-tion can only be obtained by stable, favourable policies by government. India was a leading exporter of cotton yarn, but has lost its ground since last year due the ban placed by the government earlier.

Asatraditionalindustry,wehaveresourcestodemandtheneedofconsumer.Stillneedto importfewancillaryproducts,rawmaterialfromothercountries.Dowehaveanysolutionforthis?When does one import:- a. When it is locally available but at extra ordinary prices (in case of monopolistic items) b.When it is not available but there is a huge demand These are 2 the basic reasons why one imports. Especially in the fashion industry where fashion changes every month one has to be ready with new products or new services every season. In today’s time, it is not about manufacturing everything and being self sustainable. It is about optimising the resources available and taking advantage of them and becoming a leader in its specialised field.


YARN MANUFACTURERS INTERVIEW


New Yarns

Walk into any yarn department or store and the variety of yarns and colors will amaze you. Beautiful textures, interesting fibers and exciting blends are now available along with classic, traditional

yarns.Most yarn companies provide pattern books, leaflets and even pattern ideas right on their labels. These patterns give you a good idea of how a yarn is crocheted or knitted to best advantage. Generally, projects with intricate stitch patterns are not shown in highly textured yarns because the stitch detail would be lost. The beautiful texture of these yarns is what you want to show.To help you better understand what these new yarns look like, following is a brief look at some of the more popular new yarn types. Keep in mind that some new yarns are combinations of one or two types such as eyelash yarn mixed with ribbon yarn.When working with highly textured yarns, remember to count your stitches often because it is easy to miss a stitch or make two stitches in one. When ripping out textured yarn, do it slowly so as not to break the yarn. And when making a garment with a highly textured yarn, if you have difficulty joining seams, try substituting a smooth yarn in a matching color.BoucleYarnsLoops are created on a base fiber of boucle yarns. The size of the loops and the distance between loops can vary greatly.Chenille YarnsChenille yarns have a center fiber that locks threads in place creating soft piles of fiber on either side of the base fiber. When knitted or crocheted, the fabric resembles velvet or velour.Eyelash or Fur YarnsStrands of yarn stick out from a core fiber to create eyelash yarns or fur yarns. Depending on how close and long these strands are, the yarn can appear furry.BrushedYarnsA variety of yarn types and fibers can be brushed to give a fuzzy appearance and soft feel, simulating the look of such natural fibers as mohair.ThickandThinorHomeSpunLooksCertain sections of the yarn are spun more tightly than others to create a thick and thin appearance. Thick and thin yarns often have a home-spun look and are usually quite bulky.RibbonYarnWoven or knitted ribbon yarn come in a wide variety of widths and fibers. Their flat surface “crinkles” when knitted or crocheted, creating interesting textures.Ladder YarnsTwo base fibers are joined at spaced intervals by strands of yarns, creating “steps.” Ladder yarns come in a variety of widths and the spacing of the “steps” can vary greatly.Metallics Lames or LureShiny effects in metallic lame or lure yarns can be achieved using real metal-lic fibers but most commonly, shine is achieved with strands of plastic or synthetic filament, which are light weight and soft to the touch.NubbyorSlubYarnsAs a yarn is spun, the machine periodically twist the yarn creating nubs (sometimes called slubs) on the surface. Nubs can be placed close together or far apart.

Reference:CraftYarnCouncils,www.craftyarncouncil.com

Chenille Yarns

Eyelash or Fur Yarns

BrushedYarns

BoucleYarns

RibbonYarn

Ladder Yarns

Metallics Lames or Lure

NubbyorSlubYarns


FABRIC:KNITTINGNaalbinding – History of Knitting byB.V.Doctor,HODofKnittingDepartment,SASMIRA’sInstituteofManMadeTextiles,MumbaiNaalbinding is also known as “cousin” of knitting and crochet. It predates both knitting and crochet by about atleast 2000 yrs. Naalbinding is a textile technique that uses a single, eyed, needle to create a stretchable fabric by sewing non-continuous lengths of thread in a fash-ion that in its most basic form is a series of buttonhole stitches / darning stitches and in more complex forms are threaded together. The thread is not pulled tight against itself forming a hard knot, but the stitches are tensioned, often around a thumb or needle, leaving a meshwork of interlocking loops of thread. Diagram of the simple buttonhole stitch variantAbasicmethodofnaalbindingIn naalbinding each loop is connected to at least one on either side as well. In regular knitting, each loop is only connected to those directly above and below it.The resulting fabric is generally built spiraling up row by row and can be very elastic or quite stiff depending on the variation and material used. It was regarded as a superior craft because it required more skill to pro-duce. The fabrics created are thicker and warmer.The technique of working a fabric of interlocking loops with a needle and thread may be traced back as far as the neolithic period. The earliest known extent ex-amples of nålbinding, if one is to include the button-hole stitch versions, are from c 6500 BC found in Nehal Hemar, a cave in the Judean desert, Israel and Chinese hats from 1000 BC. The next specimens are fragments found in Denmark from the Mesolithic era of the Stone Age (4,200 BC calibrated). Since the Stone Age a num-ber of examples have turned up. By the 5th century AD there are already a number of very complex ex-amples. For example a sock found in Egypt from the 4th to 6th centuries AD acquired by the Imperial Mu-seum of Austria in 1890. During the Viking Age even more examples begin to turn up. A wool sock found at Coppergate, York, England, from 970 AD with evi-dence of madder dye on the ankle. Two mittens from Iceland dated to the 10th century. From C4-C6 Egypt there are several examples of sandal socks worked in a form of naalbinding which resembles true knitting, and for this reason the technique is sometimes called ‘single-needle knitting’, to distinguish it from knitting on two needles. Naalbinding is slow process because the entire length of yarn must be pulled through each stitch, but it will not run. Naalbinding can only be done with short lengths of yarn (about 18 inches), which are joined together as the work progresses.Several different forms of naalbinding are known, from very simple to highly complicated and they are described by the course of the needle and thread

through the loops already. Following is a very basic in-troduction to naalbinding, using the simplest possible stitch.Start by making a loop in the yarn. The red ar-row marks the end of the yarn where the needle is. Hold this loop flat as shown above. Then put the needle through the loop from the bottom, over the lower part of the loop, under the up-per part of the loop and over the loose end of the yarn. When the needle is through the previous loop, tighten it around the needle. The size needle used determines the gauge of the stitches. This picture shows a loose row of these stitches. The most recent one is on the right - trace it through the previous loop to see its over-under-over course. This stitch can be described more concisely as O/UO. The / shows the point in the over-under-over path where the yarn switches from mov-ing deeper into the previous stitches to moving back out towards the edge of the work. Stitches of greater complexity are made by going through more than one of the previous loops and in different paths.Since a sin-gle row of stitches isn’t very useful, the next step is to learn how to work in the round. Start by making a loop just like that in the first illustration, but larger than the one you used for starting a row of stitches. This will be the foundation for working a circle of stitches. Now work a stitch just as you did previously, but this time go through the foundation loop from the front before working the rest of the stitch. Continue to work stitches through the foundation loop and through the previous stitch. The needle goes over then under the foundation loop, then over and under the previous stitch, and finally over the loop of the new stitch. After you have a number of stitches worked into the founda-tion loop, pull the end to tighten this loop. Then con-tinue working around the circle of stitches you have already made, but instead of going through the foun-dation loop, go through a stitch of the previous row in exactly the same way. Increases are made by working two stitches into one stitch from the previous row, and decreases are made by working two stitches together. There are at least 30 naalbinding stitches. Up to 1024 variations of one form of naalbinding are possible.


GARMENT

Instead of relying on people to design, communicate, analyze, project and improve, fashion/apparel/acces-sory brands now have the digital technologies to meet these needs in a much faster way.

ApparelIndustryProcessesandSysteminclude:• Concept Development• Product Design• Sampling• Pre Production• Materials Management• Sourcing• Vendor Management• Production• Store

DrawingSoftwareThese are used by the Fashion Designers or Technical Designers to create drawings at various stages of a gar-ment lifecycle.• Storyboard• Sketches• Measure Images• Construction Images• Packaging Instructions• Label and Tag Placements• Seams and Stitches Diagrams

3DSamplingIt simulates true to life draping, fit and design on a vir-tual human body in a 3D environment. It includes:• Parametric Human Body• Transform 2D Designs into 3D Garments• Fabric Simulation• Stitch Garments virtually• Garment Fit Analysis• 3D Range Presentation

EnterpriseResourcePlanning(ERP)Enterprise resource planning (ERP) integrates internal and external management information across an en-tire organization, embracing finance/accounting, man-ufacturing, sales and service, etc. The modules include:• Customer Order Processing• Purchase Order Processing• Warehouse Management• Finance/Costing• Manufacturing

• PlanningGarment Order ProcessingIt is the most important process being carried out at export companies. The process includes:• Style Costing• Order Confirmation• Fabric Purchase order• Accessory Purchase Order• Final Garment Order

Pattern Grading and Marker MakingPattern grading is the scaling of a pattern to a different size by incrementing important points of the pattern using an algorithm in the clothing and footwear indus-try.

Merchandise and Assortment PlanningMerchandise & Assortment Planning helps companies deliver the right products, in the right quantities and at the right time to meet local demand, maximize sales opportunities through minimized out of stocks, and thus protect margins. • Customer based functions -Sales, Returns, Exchanges, Discounts, etc.• Inventory Management – Inventory Control, Purchasing, Receiving and Transferring of Products• Sales information - Reporting, Sales Trends, Cost/Price/Profit Analysis

Production Planning and SourcingThe need for fast and effective planning demands an easy to use Planning and Sourcing tool for management of the entire supply chain, planning and monitoring all new styles/orders from initial concept to delivery. The tool may be used for • Supply Chain Management• Production Planning and Control• Merchandise Planning and Control• Critical Path Management

Visual MerchandisingVisual merchandising is the activity of promoting the sale of goods, especially by their presentation in retail outlets. It helps to• Create virtual stores of any grade/size• Design fully merchandised shopfloors• Create Planograms to communicate with the shopfloor staff

AStitchinTime-TechnologytomeetChallengesofApparelMerchandising


GARMENT

• Store and space planning• Produce Range BooksPoint of SalePoint of sale (POS) or checkout is the location where a transaction occurs. A Retail POS system typically in-cludes a computer, monitor, cash drawer, receipt print-er, customer display, barcode scanner, and a debit/ credit card reader. • Customer based functions – • Sales, Returns, Exchanges, Discounts etc.• Inventory Management – Inventory Control, Purchasing, Receiving and Transferring of Products• Sales information - Reporting, Sales Trends, Cost/Price/Profit Analysis

Business IntelligenceBusiness intelligence (BI) refers to computer-based techniques used in spotting, digging-out, and analyzing business data, such as sales revenue by products and/or departments, or by associated costs and incomes.Commonfunctionsare:• Reporting • Online analytical processing• Analytics• Business performance management• Benchmarking• Predictive analytics

Product Lifecycle Management (PLM)A Product Lifecycle Management or PLM is a combina-tion of strategies and solutions related to design, prod-uct development and pre-production processes. PLM can help by providing the single central repository of all product-related data, managing a single version of the truth and using it to drive all aspects of the product development process. Typical Product Development Systems The product development information is spread across many disparate systems A combination of various manual processes Excel Spread sheets Corel Draw / Adobe Illustrator / Adobe Photoshop etc CAD Tools Telephone calls Fax Sheets Emails What is Product Lifecycle Management?

Collaborative Product Development Process Concepts – Sketch – Design - Products (Styles) - Range

Developing Body (the Silhouettes / Design) Developing new fabrics (Structures / Designs / Colours)

Developing Value additions (Prints / Logos / Embroideries) Manage and co-ordinate this information internally and with suppliers

StoryboardStoryboard revolutionizes the offline storyboard process and strengthens product development collaboration White board area for assets Asset clipboard Asset repository Search/organize features High-resolution compression technology for images Collaboration and sharing Used for creation of mode & trend boards Early visual line plans

Designer2D and 3D Design applications Precise design Sketches Mannequin Customization Style Book True to Scale 2D sketch

Fabric & TrimA one-stop checkpoint for material specifications, sample and cost requests, Fabric & Trim facilitates collaboration with textile and trim suppliers on raw material data. Centralized one-stop checkpoint for development Sample request centre Configurable forms


Template library Multi-level searching “Where-used” functionality XML import/exportProduct ManagerProduct Manager is the product development control panel, enabling the creation, review and approval of all elements of a specification. Product Manager True Web-based product creator Specification data Project management Advanced costing Quotation management Sample management Issues centre Library History and rollback Reporting Configurable forms

SourceSource is a robust, manufacturer data management and supply chain collaboration application. Selection of suppliers Communication of order requirements Evaluation of placement options Negotiation of costs and terms Capacity planning / sourcing plans Vendor management Placement of orders for production Ethical trading management Technical capability management Factory auditing

Workflow Workflow provides simple and effective time and action calendars to proactively track progress throughout the product lifecycle Automatic and proactive issue reporting and monitoring Task scheduling, allocating and tracking Critical path tracking Automatic alerts Self-help knowledge base

Management ReportsBenefitsSmarter working aMore efficient processesa Right Products to Marketa Brings Transparency and Responsibilitya Spots Bottlenecks

a Makes company system dependant

Reductionsa Development costsa Better sourcinga Time to Marketa Risk Analysis

Collaborationa Techpacks created by teama Single Version of trutha Links supply chain

Librarya Data Librarya Design Archives

Reportsa Management Reports

Crowd SourcingAnyone can submit a design, vote it out, comment it, and then the top ones get to be made so supply meets demand.

Author: Dr.ElaManojDedhia,AssociateProfessor,College of Home Science Nirmala Niketan,Affiliated to University of [email protected]/ 09619492951

Webliography:a www.centricsoftware.com/ - a www.just-style.com/plm/ - a www.gerbertechnology.com/ - a www.apparelsearch.com/.../software/PLM_Fash-ion.htma www.lectra.com/en/.../fashion-plm/software/fashion-together.htmla www.ngcsoftware.com/redhorse.htma www.wfxondemand.com/PLM-fashion-apparel.aspxa www.lawson.com/Industries/Fashion/a www.apparelsystems.co.uk/a www.micar.com/a www.winfashion.com/a www.esuite.com.au/a www.forbes.com/sites/elisadoucette/2011/11/22/revolution-apparel-crowdsourcing-sustainable-fashion/2/a www.crowdsourcing.org/navigate-search?q=Apparela www.ratemystartup.com/voteforart-com-crowd-sourcing-branded-apparel/

GARMENT


BOMBAYRAYON

Wheredoesyourcompanystandintheentire Valuechain?Our company Bombay Rayon covers almost the entire value chain from yarn spinning, fabric weaving, knitting and garment manufacturing for export and for our own brands like Guru, Joint Venture with Danish company like Jack & Jones (JV), Only and Vermoda. We have units in various places as below:Yarn: Factory in Indore- 75,000 spindles,spinning of cotton, slub, spandex yarns.Fabric:Weaving factory in Tarapur, Bhiwandi, Vashi, Islampur, Ichalkaranji, Silvasa, Bengaluru,

FabricProcessing:Dying, printing, finishing in Tarapur, BengaluruGarments: Woven: Bengaluru, Tamil Nadu, Kerala, Ichalkaranji, Latur, Bangladesh.Knits: Capacity 5 tons/ day, expansion plan of 100 tons / day at Kolhapur or Solapur for benefits of common effluent plant.

In conversation with Mr. Chandresh Dedhia, GM. Marketing of Bombay Rayon.A Textile Graduate and having ample of industry experience.

He shared his views about the gap of industry and Education” there is huge gap between two; working in tandam is need of hour. Government official should pass the information about new expansion plan of companies to education dept, and should create job awareness in textile industry, put positive picture of industry for young blood to join industry.”


RetailStoresinIndia:Guru: 13 stores Jack&Jones: 108 storesOnly: 108 stores Vermoda:108 storesHowisthetextileindustrygrowth?Withrefer encetoopportunity,revenue,exports,foreigndirectinvestment(FDI),etc?FDI is very low as currently it is not an attractive industry in manufacturing due to labour and capital intensives Export can improve a lot as Chinese currency is appreciating. China is having banking and costing problems. Many companies are now beingconsid ered as non performing companies. So if Chinese export shrinks then India will only benefit. Currently we are 2nd only to China in terms of exports.Whyisthetextileindustrysofragmented?Orunorganized?India has a large scale of entrepreneurs but withoutmoney. So we have more SSI than large scale pro duction manufacturers. Ex. India has 20 stitchingmachines per company as compared to Bangladesh having 600 stitching machines. Indian system does not allow this on such a large scale as our payback period is very long, almost 8 -9 years. Also, ours is a huge capital and labour intensive industry. We need major policy changes, incentives and organization.Whyisthereagapbetweenorganizedandunorganizedsector?The gap is mainly due to different structures, policies and taxes which differ from state to state. As a result of this, we have very few plants with huge capacities. Bengaluru has very few plants having production capacity of 1 Lakh / day. Other places are not even remotely close to that.DoyoufeeltheGapbetweenTextileindustryandTextileEducationIndustry?Ifyes,why?There is a huge gap where the education is not moving with the times. Yes, working with tandem is the need of the hour. Government knows corporate plans of expansion state-wise. So governments plan how much employment is required for a particular plant/ office and should pass information to education department and accordingly plan, add more education programs. Currently there is no correlation and information passage. There is a huge gap of skills as theoretical degree is very dated versus raw skills, machinery operation etc.Ex. Women working is highest in this industry but only in south. In Bengaluru, about 30,000 women work in stitching and finishing departments. In Maharashtra, places like Ichalkaranji, Latur, Silvasa,

where political environment is strong, women working is not taken positively. Bombay Rayon has professional training center to train employees which has great response in south rather than West.Howcanwefulfillorminimizethegapbetweenthetwo:industryandeducation?Media can help to reduce this gap by passage and transformation of information. People need to be more serious and committed. New employees should focus to be in this industry, improve the industry for long term rather than switching industry. Textile Industry is in need of people and its Traditional industry but schools and colleges are not focusing and developing as an organized way as compared to other education courses offered in India.Textile and Garment industry is a commodity. Due to commodity approach, the perspective is that special education is not required. CurrentMarketwhereManagementinstitutesareflourishingincountry,butverylessorganizedTextileTechnicalTraininginstitutes.Doesindustrynotrequiretechnicalpeopleorlessdemand/supply?No, Industry very much requires technical people. There is scarcity of skilled people in industry. Lots of technical people are required in textile industrybut reality is that there are few. Lots of unskilled workers are working in industry and we need to train and reshape that. Also there is lot of drop out from industry, so people really need to be motivated, have patience and be in the industry.GovernmentandManufacturersareimportantactorsofvaluechain.Inwhichareabothlackingrowthpathofindustryandeducation?Right now, we are competing with China. We need to have huge infrastructure like China, big scale economy-wise. Government needs to give support to entrepreneurs for expansion plan. If this is in place, education will have no option but to look at this industry. In future, people will look at this industry as more promising than any other.TextileisoldinIndia,2ndrankindustryafterAgriculturebutstillintermsofexports,wearenotinaleadingpositionintheWorld?WhatistheReason?Technology like machinery is being imported from other countries. There are many new avenues where manufacturers can look up to like technical textiles, Geo textiles etc. But India is last to look at this market. We have huge scope in world market as compared to other competing countries, but we need to be in sync.

BOMBAYRAYON


We are masters in making world’s best quality of cotton: Shankar 6, which has good spinning, wa-ter absorbency qual-

ity attracts world to purchase cotton from India. Cotton has highest flotation rates, most suffered are farmer. Commodity exchange has lead to era of British ruled. Indian cotton industry should be more open, relaxing; there should be no interfer-ence of Supreme body. our competitor, China is having more relaxing government attitude, more subsidy by government is given to manufacturer. Govt. is more supporting to spinner / spinning companies, than ginning companies. But ginning

is back bone of cotton industry / root level pro-cess; association and so govt. policy should en-courage ginner. Cotton association has good plans, but plan implementation is the biggest drawback in Indian Govt. System. Lazy attitudes of Govt. as well as few industry people lead to slow growth of industry. We are not happy with govt. attitude: as Govt. bans cotton export anytime, there is no stability of mind of people who sets policy of Ex-port and Import. India is the 2nd World exporter of Cotton fiber country, if all industry channels will work together on one track and if govt. supports, then India has no reason to look back and become the 1st world exporter as compare with China.

EXPORTERCORNER

“Indiancottonindustryshouldbemoreopen,relaxing;interfer-enceofSupremebodyforExportofCottonaffectsthegrowthofIndustry.”Mr. Paresh Valia, MD, Asha Cotton Industries, Bhavnagar, Gujrat.

PareshValia,Managing Director


VoiceofRetailersfromIndia:

It was astonished to know that India having really smart, creative, intelligent Business man in tex-

tile Retail industry, who do not fear with industry Organized Retailers and FDI in Retail sector which may finish their business in a long run. Across coun-try from Bihar, UP, MP, Maharashtra, Gujarat, many other states innovatively expanding and growing their business, though they have tough competition from organized retail.

This industry have 14 lac retailer out of that 7.38 lac is in villages. Out of this 300 to 400 shops have 30 to 40 crore monthly business turnover. Few retailers had

shared their own success story in retail business; we had given a brief of same. Retail works in few parameters: Purchase of products, Presentation of Store, Sales Staff, Stock Maintenance, Sales tactics• Purchase:Purchasing of Good Quality Fabrics, Garments, Brands attract consumer to be there in store, visit again for Quality products. Garment purchase is more to Brand, Consumer can switch brand any time, also brand have low margin as compare to non branded garments/ fabrics. So decision to keep many brands should be wisely taken.• PresentationofStore/Infrastructure:Outlook of store, Glass Window display, placing products rightly, wall colour of store, Cleaned Floor, Tiles of floor, Cleaned racks, Proper lighting, Light but strong, movable Furniture, Good Background Music, Positive environment affects the feel good factor, feel as home store with friendly environment.• Salesstaff: should be trained, skilled, friendly with customer, Good Behavior, good service wins half sales. Fabric purchase by end consumer, still require personal touch. If you build good rapport with a consumer, every time consumer buys from same shop. Departmental shift of sales staff is lead to overall growth of individual; employees are more loyal to company than switch over. Training of employee is investment in the business. Before trend setter, be people setter. Understand staff problems, behave as family member.• StockMaintenance: Money should be converted from Dead money to Live money. Dead stock is like enemy in business; need to clear it out asap through discount scheme. Keep one day as discount day in a year. Where u can give maximum discount, clear your stock; don’t look at profit at that time. (conversion of dead money to live is most important objective in stock clearance sale) “90% of Sales turn over comes from this one day”, quoted by many retailer. DeadStockFormula: Margin (25%) X Stock Turnover (4times / year) (Stock Replacement/ stock change over) = Stock Productivity (100% to 125%)• Salestactics: Free gifts, free service, Entertainment through Games, free movie coupons, free vouchers for next purchase, store membership etc. should be performed to increase the sale of store.

SMECORNER


SKILLGAPANALYSIS

HumanResourceandSkillRequirementsinTextilesector(2022)Study on mapping of human resource skill gaps in India till 2022

• CurrentEmploymentPatternAn estimated 33 million people are employed in the Textile sector in India3. This is expected to increase to 45 million by 2012. The Ready Made Garments (RMG) sector, which accounted for 17% of the employment, is estimated to contribute 25% to the total employment in the textile sector.

Cottonandman-madetextilesaccountformorethan80%oftheemploymentinthetextilesector,asde-pictedinthefollowingfigure.

Share in Employment of different sectors The employment in fabric manufacturing includes the handloom, weaving, knitting sectors and garmenting

accounts for a major portion of the employment in the textile sector on account the labour intensive nature of operations. The share of employment in different activities inthe value chain is discussed later.• Share of Women in EmploymentIt is estimated that out of the total number of persons employed in Handlooms, Handicrafts, and Sericulture, about 50% are women. There are more women in the household industry than in the registered small scale or cottage units. However, in the organised sector the percentage of women workers is extremely low, with the exception being garmenting.• Profile of human resource in different functionsThe textile industry (except the spinning sector) is fragmented in nature on account of policy restrictions relating to labour laws and the fiscal advantages en-joyed by the small-scale units. The textile units mostly engage in job work (sub contracting) and hence a large portion of the employment is in the production


activities. Also, the small units do not have explicit demarcation of functions for sourcing, sales, etc.• Skill Pyramid for the T&C industryGiven that the industry would required a varied profile of skill sets, the following figure presents an overview of the profile of skill requirements as derived from hu-man resource requirements across different sectors of

the T&C industry.Skill Pyramid within the Textile and Clothing IndustrySkillLevel-1 skills which can be acquired with a short/modular and focused intervention and therby enhancing employability of those with minimal educa-tion . It account 85- 86% .

SKILLGAPANALYSIS


SkillLevel:2 Skills which require technical training in-puts, knowledge of complex operations and machin-ery, skills of supervision. It accounts 10-11 % SkillLevel:3 Skills which require long drawn prepara-tion as demonstrated by acquisition of degree and in-volve highly technical people. It accounts 3-3.5 % SkillLevel:4Skills which are highly specialized involv-ing research and design The skill summary, captures where the textile and clothing industry stands relatively in terms of skills (a function of activity, educational requirements, and amount of ‘preparatory’ time required to inculcate a specific skill) as compared to all other industries.‘Skill Level 1’, has the highest incremental requirement of human resources. It requires persons who are mini-mally educated, yet can handle simple and/or repeti-tive tasks (persons employed in activities such as basic machine operations, knitting, cutting, and stitching/sewing, etc.). Such skills can also be obtained in lesser time duration as compared to engineering or ITI cours-es. As many as over 15 million persons are required across skill levels 1 and 2 outlined above. • Current Training/Education InfrastructureThe current training infrastructure is inadequate on both number of people trained and also the quality of training being imparted. Also, very few of the train-ing initiatives are targeted at the shop floor level. The newly inducted workers learn through informal train-ing and learning from the experience of the existing work force.Training institutes available in India. Textiles Research Associations (TRAs) Power loom Service Centers (PSCs) Indian Institutes of Handloom Technology (IIHT) Weaver’s Service Centers (WSC) Industrial Training Institutes (ITI) offering courses related to Textiles Home Science Colleges offering Textiles & Clothing Courses Apparel Training & Design Centres (ATDCs) Institute of Apparel Management National Institute of Fashion Technology Sardar Vallabhbai Patel Institute of Textile Management The availability of trained manpower is a key issue for the garmenting sector. The ATDC, ITIs and NIFT annually train up to 50,000 workers. A few private sector players also provide training specific to the garmenting sector. A large por-tion of the requirement of human resource at the op-erator level is met by on the job training. Hence train-ing at the operator level is a key gap. Acute shortage

of skilled man power leads to poaching and acts as a detriment to spending on in house training initia-tives.• Emerging trends in skill requirementsEmergingtrendsinhumanresourcerequirements Technology The changes in technology would significantly af-fect the profile of people involved. The share of shut-tle-less looms in the Indian textiles industry is only 2-3% as against a world average of 16.9%, thereby in-dicating a low degree of modernization in the Indian weaving industry. Although the Indian spinning sector is relatively more modernized, around 60% of installed spindles are more than 10 years old and open-end (OE) rotors account for only 1% of total installed spindles. In the apparel sector, India has much lower investment in special purpose machines, which perform specific functions and add value to the product. Very few ex-port establishments have invested in cutting machines or finishing machines. The low level of technology and government incentives like TUFS would drive modern-ization in the industry where as the high power costs would be a detriment. Thetechnologicalupgradationwouldnecessitatethehumanresourcetobetrainedinmodernmachin-eryandalsogreater inhouse spendingon training.Theshortageoflaborandincreasingwageratewouldfurtherinducegreaterautomationwhichwillleadtohigherproductivity.Forinstance,theoperatinghoursper quintal of yarn have decreased from 77 to 25 on accountofmodernisationandwouldcontinuetofall.Also,thenumbersofpeopleinvolvedinpostspinningoperationshavecomedownonaccountofautomaticconewindingmachines. The modern machinery would require skilledmaintenancepeoplewhohave the requisiteknowl-edge of the same. Proper maintenance would becrucialasmachinedowntimeandcostlysparepartswouldsignificantlyaffecttheperformanceofthein-dustry. Quality ProcessesThere would be increasing focus and adoption of qual-ity and environment related processes, such as: ISO 9001:2008, ISO 14001 Research & DevelopmentThe textile industry does not have R&D as a focus area. The industry would have to invest more in both pro-cess and product R&D to maintain product and cost competitiveness. This requires industry-academia col-laborations as well as individual R&D efforts by the companies. Labour lawsMore flexible labour regulations will positively affect

SKILLGAPANALYSIS


the industry. Currently, Textile and Clothing industry comes under the purview of Contract Labour Act, 1970 which prohibits contract labour for the work that is pe-rennial in nature. The exporters find it difficult to man-age the seasonal and order based volatility in demand on account of this. Change in the current regulations can lead to opening up of more employment oppor-tunities. Also, the current regulations prohibit women from being employed in night shifts. Relaxation of the same with adequate safeguards can lead to more par-ticipation of women and also help in addressing the skill shortage in the industry. Human resource related Modernisation of technology would necessitate more technical skills for operators in the production and maintenance functions across the value chain of the textile industry. The sector also needs multi-tasking/multi skilling at the operator level. The hu-man resource at the higher levels as well as in other functions like procurement would need to possess the knowledge of various types of machines and also keep abreast with the changes in technology. The garmenting sector would be the key driver of the employment in the textile sector. Majority large portion of the human resource requirement will be for operators who have the adequate knowledge of sew-ing machine operations and different types of seams and stitches. Although, the industry will continue to have predominantly line system of operations, de-

signer and high end fashion exports would necessitate “make through” system of operations which would require the operators to have the ability to stitch the complete garment. The availability of merchandising and designing skills would be crucial for increasing share in export markets and tapping the potential in new markets.RegionswhichwilldrivehumanresourcerequirementsThe major centres in India where this employment generation would take place are Tamil Nadu, West Ben-gal, Karnataka, Maharashtra, and Gujarat. The state of Tamil Nadu will account for around 30% of the employ-ment in the textile sector.Share of various states of employment in the textile sectorSource: Annual Survey of Industries, IMaCS AnalysisThe poor performance of the industry in the recent past has resulted in the sector not attracting new in-vestments. The cluster development activities of vari-ous organizations have not found takers and hence new clusters do not appear likely at this point of time. However,Andhra Pradesh is a likely future destination for new investments, especially in the garmenting sec-tor with the establishment of Apparel Parks. The gov-ernment initiatives of providing power at a cost of 2 Rs per unit will be a key factor in attracting investments in spinning sector. Also, the state has surplus cotton and would result in lower logistics cost. Availability of raw

materials and low power costs will also attract investments in the downstream activities like fabric manufacturing, process-ing and garmenting.The scheme of integrated tex-tile parks and various SEZs would also affect the regions availability of labour. States like Uttranchal necessitate that most of the labour force in the units operating in SEZ should be local.The states of UP, Bihar and Orissa etc would be key catch-ment areas to meet the labour requirements. Already the spinning sector in Tamil Nadu is seeing more and more influx of labour from these states as the current wage rates in the states are very high.Environmental concerns would affect the processing sector.

SKILLGAPANALYSIS


The effluent treatment requirements might see units shifting to coastal areas as marine discharge require-ments are less stringent.Projected Human Resource Requirements in the Textile & Clothing SectorIn this section, we shall review the projected human resource requirement in the Textile and Clothing sec-tor based on the projection of industry size.• Projected Size of the Textile and Clothing IndustryIt is estimated that the PFCE on clothing will grow at a CAGR of 7.5% between 2008 and 2022. Based on pro-jected growth of GDP and exports, we expect that the exports of textiles will grow at a rate of 11% to 11.5%. Thus, the overall T&C sector will grow at a CAGR of 9.5% to a size of Rs. 6,730 billion. Out of this, the share of exports is expected to increase from just under 50% currently to about 60% in 2022.

Projected human resource requirementWhile analysing the human resource requirement, we have categorised the overall Textile and Clothing sec-tor as follows:1. The Mainstream Textile and Clothing sector – com-prising of Spinning, Fabric Manufacturing, Fabric Pro-cessing and Garmenting.2. Other related industries such as:a. Handloom b. Woolen c. Sericulture d. Handicrafts e. Jute.While we expect the human resource requirement in

the Mainstream sector to be closely related to market driven textile and clothing industry growth, the human resource requirement in areas such as handloom and handicrafts would have to be supplemented by initia-tives from the Government and Industry. The addition of human resource into these other sectors would be at a much lower rate as compared to the Mainstream sectors due to need for significant support for earn-ings, scope for enhanced technology intervention and automation as compared to current levels, the need to add value, and attractiveness of the sector among the human resource supply.Keeping in mind the above factors and the growth of the industry, we have projected the human resource requirement for the T&C sector. It is expected that the overall employment in the sector would increase from about 33 to 35 million currently to about 60 to 62 mil-lion by 2022. This would translate to an incremental human resource requirement of about 25 million per-sons. Of this the Mainstream textile sector has the po-tential to employ about 17 million persons incremen-tally till 2022.

Reference:NSDC(NationalSkillDevelopmentCorpo-ration)Website:http://www.nsdcindia.org

SKILLGAPANALYSIS


Merchandising*_Merchants of chic-istan! _*

In the modern fashion constellation, there are mul-tiple genres of roles which collaborate to create and sustain a successful Brand. Fashion is not only about

the glamorous runways, fashion glossies and designing couture; it’s a whole new dimension of creating desir-able wants to satisfy the ever demanding creative soul of curious customers.

Merchandising is one such dynamic fashion Branch, which has multifold into a promising field in fashion umbrella. Merchandisers have transformed into a cru-cial catalyst in the process of finished product reach-ing the Ultimate user. One of the principle functions of Merchandiser is to ensure delivery of the right quan-tity finished goods, in right specifications as required by the buyer.

The role of Merchandiser revolves around coordina-tion of planning, purchasing, moving and controlling of materials in optimum manner at minimum cost for the buyer’s buyer. Unlike Marketing, Merchandising is more specific concerning itself with the development, execution and delivery of the product line with its close ties to the market segment.

Merchandising not only is able to adjust but also they formulate market changes.

Depending to the structure and nature of the organi-zation, the job profile of a merchandiser differs in the functionality and responsibility. There is vast scope and great demand for merchandisers in Garment Industry by – Export houses, Buying houses, Retailers / Brand studios, Importers,etc.

Functions of Merchandiser in export house is has to deal with buying houses or buyer directly. His main duties are to correspond with buyer, co-ordinate with various in-house departments like sampling, stores, quality control, etc, to generate purchase orders for accessories, fabrics, etc, to organize inspections, Orga-nizing seller – buyer meets, etc.

Whereas, in buying house, Merchandiser deals with numbers of factories, vendor sourcing and training the appropriate ones as per buyer’s standard, Shipping and scheduling, prevent delays, etc. On other hand in retail organization merchandisers does range selection, es-

timate sales, vendor selection, Visual Merchandising, pricing decisions, plan stocks, etc.

Thus, we can see how diverse and crucial the function of Merchandiser is in various different organizations. Irrespective of his functions and role, to be success-ful merchandiser, one must possess traits like excellent Trend forecasting, excellent communication skills, ne-gotiating art, team building, market understanding, co-ordination skills, Technology know-how, etc.

At the outset of globalization, the retail sector has boomed in magnitude and thus, has resulted in whole new career segment in the field of Retailing. This also has majorly revived the importance of efficient and articulate merchandisers, who fiercely catastases the trickle down fashion and make trends accessible for masses.

And, as fashion consciousness penetrates and trans-forms tinsel towns into trend lands, the demand for affluent team of merchandisers would be always on rise.

Once, there was a merchant of Venice, today is the time where merchandisers coordinates a vernacular vendor to re-create that Venetian Elegance!

ANIKET SARAN Fashion Columnist Student of B.D. Somani Institute of Arts and Fashion Technology.in associasation with

RajuBhatiaHOD, Fashion technologyB.D. Somani Institute of Arts and Fashion Technology.

CAREEROPPORTUNITY

College Name Course Type WebsiteS.no.

SVT college of Home science

BMN College, (SNDT - Matunga)

Nirmala Niketan

B .D. Somani Fashion Institute

Blitz Institute of Creative Arts

FDDI

IITC

Indian Fashion Academy

ISBM

INIFD

J.D. institute

Raffels Design Institute

Sophia College

WLCI School of Fashion

Rachsna Sansad school of Fashion and Textile Design

NIFT

Apparel Training and Design Center

IIFT

Xplora Design Skool

BhSC of Textile and Clothing

BSC Textile Science & Apparel Design

BSC Textile and Fashion

Fashion, Merchandising& Retail Management

BSC fashion designing

Fashion Merchandising and Retail

Fashion Merchandising

Fashion and Textile designing

Fahion Mangement / Textile Management

Merchandising

BSC Fashion & Apparel Design

Fashion design/fashion Marketing

Textile Design

Fashion Designing

BSC Fashion Design

B Design Fashion / Textile design / Apparel Production/ B design Knitwear

Apparel, Fashion Merchandising

Apparel Merchandising / Clothing Management

Textile Design

www.svt.ac.in

www.bmncollege.com

www.nirmalaniketan.com

www.bdsomani.com

www.bicarts.org

www.fddiindia.com

www.iitcworld.com

www.indianfashionacademy.net

www.isbm.org.in

www.inifdandheri.com

www.jdindia.com

www.raffles-design-institute.co.id

www.sophiacampus.com

www.wlcifashion.in

www.rachanasansad.edu.in

www.nift.ac.in

[email protected]

www.iiftindia.net

www.xdsindia.com

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Textile Institutes which are offering Merchandising Course and Curriculum


Dr. Shilpa Charankar from B.M.N. College of Home sciencePrincipal, HOD of Textile Science and Apparel Design.

Textile and women are closely associated in the world in terms of new fashion, new colour, new design, em-ployment in industry, tailoring, skilled craftsmen ship,

fine artist etc. As women are pillars of society. Our whole life revolve around women.. No women.. No Life.. No world Existence…

We are having SNDT Women’s university in India which is established in year 1916 (Soon celebrating 100 years of Uni-versity) which are having 230 colleges across India. Offering Commerce, Art, Science course for Women, also offers some professional courses like Home science with Specialization of Textiles, Clothing, Food Science, Child Development, Interior Designing, Communication, Journalism many more… this is not just a “ Home Science” But it’s totally Personality Build-ing, Grooming , Confidence Building, Career Building Courses which make them to live with self esteem and independence in society.

We met with a dynamic, head strong, smart lady who is prin-cipal of one of SNDT, Matunga, Mumbai, she is also com-mittee member of SNDT women’s university of India, she is Dr. Shilpa… Exclusively she had discussed with Textile value chain about Textile courses, Students of SNDT in textiles, In-dustrial views of SNDT students, Alumni student. We will dis-cuss each one here:

SNDT


SNDT

• CourseofTextileFacultyTextile and garment courses which we are offering here is as per need of the industry. As this course have “Holistic Approach” then specific approach. Course contents are upgraded every 3 to 5 years as per current trend, demand of industry, on ad-vanced industrial technology. This upgradation is done by constantly interacting with industrial ex-perienced people, Alumni Feedback and Intern-ship review.Course also have industry visits like weavers ser-vice center, Knitting units etc, to give practical know how, experience of education what they have learnt in college syllabus. Course has few technical college visits with top-most textile technical colleges to get knowledge of other technical courses, interacting with techni-cal students. Purpose of visit is to get confidence with industry .

• Competentstudents:Recently we have competition with other techni-cal colleges and students. And I am proud to say that our students are the winners of this compe-tition We conduct various workshops, industry seminars, which all give them knowledge and con-fidence to face world.

• Industrial views on SNDT course and Stu-dents:Industry is very much positive about courses, for

students SNDT University who graduated in specialized subjects. Corporate like Ex-port house, Manufacturing company, Fashion Designer, Buying Houses, Organized Retailers, trading Houses, Re-search Companies and textile Labs visits campus and recruit students for their organiza-tion for the suitable jobs like : Merchandiser, Fashion de-signer, Fashion/ Garment Co-coordinator, Textile designer, Research assistance, Testing lab assistant, many more…As per industrial view, SNDT students are more sincere,

hard working, committed, positive, and smart than other private Hyped institutes which are of-fering the same course. For more personality grooming and to compete with today’s corporate world, College had started “Personality development “ Course.• AlumniStudentsProfiles:As per course content, 2 months internship is de-sign , 2 months industry work experience which certified by industrial people. Many organization offer good Placements for internship, student con-tinue to work there itself and start their career. This way we give them stepping stone to industry and corporate world.

Most of our alumni are working in corporate com-panies as textile designer, merchandisers, Fash-ion designer, Garment co- coordinator, few have opened their own fashion boutiques/ House. So no Women should feel that the textile is just Black collar work its totally blue collar and gives pure business sense if you work closely in this indus-try.

I am very much proud to be part of SNDT Univer-sity, my whole life is dedicated to SNDT which is 96 years old.. Happy and excited to celebrate its 100 years… You all are welcomed for celebration of 100 years…!!!


JOBOPPORTUNITY


Introduction:

Learning involves the acquisition of knowl-edge. It is well known fact that people acquires new knowledge using their current or existing

knowledge. Acquiring new knowledge is to a greater or lesser extent, seeking ways to integrate the new knowledge with related knowledge already known. Knowledge acquisition emphasize on cognition. The knowledge known or existing knowledge is known as learner’s cognitive structure. Learning, according to cognitive science is not only the process of trans-mitting information from a teacher to learner. It is an active, constructive process, involving collaboration and reflection among people who learn through the course of their everyday activity. Cognitive structure is essentially non-existance at the time of birth. It is general agreement that the acquisition of functional level of leanguage knowledge is achieved by age of three and by age of five to six acquires knowledge for decoding written language by the child. Further development of cognitive structure advances rapidly after acquisition of language. Let us accept the fact that our brain is extremely complex organ, and not an empty vessel to be filled with knowledge / information, which recognizes and stores signals from our sensory systems namely sights, sounds, smells, feelings and proprioceptor signals from our muscles. The signals / information is sent from our sensory system to an area known as hippocampus region of brain where information processing is carried over and plays an important role in creativity and imagination, considered the site of Working memory and through an interaction with knowledge stored in our long term memory, new meanings are constructed and become part of our long term memory store / cognitive structure. Cognitive structure develops as the person grows. Person builds cognitive / knowledge structure, skills and motivation through meaningful learnig. Behav-ior or action which learners use to make learning more successful, self directed, enjoyable and de-lightful depends on the learning strategy adopted by the learner.Based on cognitive science, the understanding of how human beings learn, gives rise to the following key assumption which leads to two different envi-ronments in which learning is made possible namely formal learning environment and informal learning environment.

Learning takes place within communities of prac-tice.Novices learn to become experts through practice in solving a variety of problems in a given domain.Becoming an expert means applying learning to new contexts.Prior knowledge mediates learningLearning is enhanced when thinking is made visible by collaboration and reflection among learner.Goal of learningThe broader vision of learning includes not only acquiring knowledge but also being able to use knowledge in a variety of new situations. Usage of knowledge in different new situation emphasize on metacognition. Metacognition in simple term is thinking about thinking. It is conscious development in one’s abilities, such as awareness and control of one’s learning, move to greater knowledge, select-ing proper strategies, monitoring the progress, cor-recting the errors, analyzing the effectiveness of strategies and changing the behaviors and strate-gies whenever necessary These abilities are known as metacognitive abilities and development of these metacognitive abilities is known as meta cognitive developments. Learners who are exposed / aware of the role of metacognitive abilities seem to have the following advantages over others who are not ex-posed / aware of the role of metacognitive abilities.Two of the most important goal of learning which decide the outcome of learning is:Promote retention: Retention is the ability to re-member material at some later time in much the same way it was presented during the process of ac-quisition. Retention focuses on past.Promotetransfer: Transfer is the ability to use what was learned or acquired to solve new problems, answer new questions, or facilitate acquiring new knowledge. Transfer emphasizes on futureOutcome of learningI started my career as teacher in the field of techni-cal education way back in 1984 after completing my post graduation in the field of textile technology at the age of 26. I have completed 25 years in teaching the students of Post SSC Diploma of three year dura-tion. It is delightful journey of twenty five years. Dur-ing these twenty five years of journey as a teacher I have come across many students and observed their learning progress / outcome. Based on my observa-tion and experience I can summarize the learning outcome by the following three Scenarios.

MEANINGFULLEARNING


Scenario OneIn this learning scenario, a student during the pro-cess of learning reads a chapter or performs an ex-periment on given subject. (S)he skims the material from the chapter or performs the practical without properly understanding or giving attention to proper and relevant information and instruction provided to perform the practical. During the feedback / assess-ment, when asked to recall part of subject learned or identify the various elements used to perform practical very few or none of the elements able to remember. When asked to use the acquire knowl-edge to solve problems or perform practical, cannot apply the knowledge to solve problem or perform the practical. It indicates that the person neither possesses nor is able to use the relevant knowledge because the person has neither sufficiently attended to nor encoded the information provided on subject matter during learning.Scenario TwoIn this learning scenario, a student during the pro-cess of learning reads a chapter or performs an ex-periment on the given subject. (S)he reads the ma-terial from the chapter carefully, making sure that every word is read and key facts are memorized and performs the practical with proper understanding or giving attention to proper and relevant information and instruction provided to perform the practical. During the feedback / assessment, when asked to recall part of subject learned or identify the various elements used to perform practical, is able to re-member key terms and facts or identify the various elements used to perform practical. When asked to use the acquire knowledge to solve problems, can-not apply the knowledge to solve problem. It indi-cates that the person possesses relevant knowledge but is unable to use the relevant knowledge to solve the problem as unable to transfer the knowledge to new situation. It happened because the person has sufficiently attended to relevant information but has not encoded (understood) the information provided on subject matter during learning.Scenario ThreeIn this learning scenario, a student during the process of learning reads a chapter on one subject. Learner (Student) reads the material from the chapter care-fully, and performs the practical with proper under-standing or giving attention to proper and relevant information and instruction provided to perform the practical making sure that every word is read and

key facts are memorized and trying to make sense out of it. During the feedback / assessment, when asked to recall part of subject learned or identify the various elements used to perform practical, is able to remember almost all of the key terms and facts and identify the various elements used to per-form practical. Further, when asked to use the ac-quire knowledge to solve problems, able to apply the knowledge to solve problem generating many possible solutions. It indicates that the person not only possesses relevant knowledge but can be able to use the relevant knowledge to solve the problem and understand new concepts. It means can transfer the knowledge acquired to new problems and new situations. It happened because the person has suf-ficiently attended to relevant information but has encoded (understood) the information provided on subject matter during learning / Practical.ConclusionIt can be conclude that scenario one characterized as No Learning Outcome while scenario two as Rot Learning Outcome and scenario three as Meaningful Learning Outcome. Rote learning is simple memorization. No effort is made to integrate new knowledge with relavent prior / existing knowledge. This does little to build person’s knowledge structure. Meaningful learning where learner seeks ways and means to connect or integrate new concept or ideas with relevant prior or existing idea or concepts. In this process existing ideas or concepts gets refined, corrected or sharpened and new knowledge is add-ed to cognitive structure. Thus helps in building per-son’s knowledge structure.Meaningful learning is recognized as an important educational goal. It occurs only when person build the knowledge and cognitive processes needed for successful problem solving. The cognitive processes describe the range of person’s cognitive activities in meaningful learning. These processes are ways by which person can actively engage in the process of constructing meaning..

Author : Mr. B.V. Doctor. HOD of Kinitting Department, Sasmira College, Worli, Mumbai.

MEANINGFULLEARNING


Study of Artificial NeuralNetwork:Part1

A New Approach of Prediction used in Textiles

Introduction

An artificial neural net-work (ANN), often just

called a “neural network” (NN), is a mathematical model or computational model based on Biological neural networks. An Artifi-cial Neural Network (ANN) is an information process-ing paradigm that is in-spired by the way biologi-cal nervous systems, such as the brain, process infor-mation. ANN is composed of a large number highly interconnected processing elements (neurons) work-ing in unison to solve spe-cific problems. As defined by Haykin a neural network is a massively paralleled distributed processor that has a natural propensity for storing experimental knowledge and making it available for use.ANN is most generic form of artificial intelligence for emulation of human think-ing compared with expert system and fuzzy logic. The conventional digital computer is very good in solving expert-system problems and somewhat less efficient in solving fuzzy logic problems, but its limitations in solving pattern- recognition and image processing- type problems have been seri-ously felt for the long time. As a result, people’s atten-tion was gradually focused on ANN, which could solve such problem very effi-ciently. Fundamentally, the

human brain is constituted of billions of nerve cells, called neurons, and these are interconnected to form the biological neural network. Our thinking process is generated by action of this neural network. The ANN tends to simulate the biological neural network with the help of dedicated electronic computational circuits or computer software. The technology has recently applied in process control, identification, diagnostics, character recognition, robot vision, and financial fore-casting, to name just few.In more practical terms neural networks are non-linear statistical data modeling tools. They can be used to model complex relationships between inputs and out-puts or to find patterns in dataNeural Network with three inputs, one hidden Layer and Two OutputHistoricalBackground:Neural network simulations appear to be a recent de-velopment. However, this field was established before the advent of computers, and has survived at least one major setback and several eras The history of ANN is old and fascinating. In 1943, Mc-Culloch and Pitts first proposed a network composed of binary-valued artificial neurons that were capable of simple threshold logic computations. In 1949, Hebb proposed a network-learning rule that was called Hebb’s rule. In the 1950s, the dominant figure in neu-ral – network research was the psychologist Rosenblatt at Cornell Aeronautical Laboratory. He invented the Preceptor, which represents a Biological sensory model such as the eye. Windrow and Hoff proposed ADALINE and MADALINE and trained the network by delta rule, which is the forerunner of the modern back propagation trained method. The lack of expected performance of these network coupled

ARTIFICIALNEURALNETWORK(ANN)


ARTIFICIALNEURALNETWORK(ANN)

with the glamour of van Neumann digital computer in the late 1960s and 1970s practically camou-flaged the neural-network evolution. The modern era of the neural network with rejuvenated research practically

started in 1982, when Hopfield, a professor of chem-istry and biology at California Institute of Technology, presented his invention at the National Academy of Science. Since then, many neural-network models and learning rule have been introduced. Since the begin-ning of the 1990s, the neural network as an artificial-intelligence tool has captivated the attention of a large section of scientific community.Many important advances have been boosted by the use of inexpensive computer emulations. Following an initial period of enthusiasm, the field survived a period of frustration and disrepute. During this period when funding and professional support was minimal, impor-tant advances were made by relatively few research-ers. These pioneers were able to develop convincing technology which surpassed the limitations identified by Minsky and Papert. Minsky and Papert, published a book (in 1969) in which they summed up a general feeling of frustration (against neural networks) among researchers, and was thus accepted by most without further analysis. Currently, the neural network field enjoys a resurgence of interest and a corresponding increase in funding. The first artificial neuron was produced in 1943 by the neurophysiologist Warren McCulloch and the logician Walter Pits. But the technology available at that time did not allow them to do too much. These networks are also similar to the biological neural networks in the sense that functions are performed col-lectively and in parallel by the units, rather than there being a clear delineation of subtasks to which various units are assigned. Currently, the term Artificial Neural Network (ANN) tends to refer mostly to neural net-work models employed in statistics, cognitive psychol-ogy and artificial intelligence. Neural network models designed with emulation of the central nervous system (CNS) in mind are a subject of theoretical neuroscience (computational neuroscience).In modern software implementations of artificial neu-ral networks the approach inspired by biology has more or less been abandoned for a more practical ap-proach based on statistics and signal processing. While the more general approach of such adaptive systems

is more suitable for real-world problem solving, it has far less to do with the traditional artificial intelligence connectionist models. WhyUseNeuralNetworks?Either humans or other computer techniques can use neural networks, with their remarkable ability to de-rive meaning from complicated or imprecise data, to extract patterns and detect trends that are too com-plex to be noticed. A trained neural network can be thought of as an “expert” in the category of informa-tion it has been given to analyze.OtherAdvantagesInclude:• Adaptivelearning: An ability to learn how to do tasks based on the data given for training or initial experience. • Self-Organization: An ANN can create its own organization or representation of the information it receives during learning time. • RealTimeOperation: ANN computations may be carried out in parallel, and special hardware devices are being designed and manufactured which take advantage of this capability. • AlternativemethodforStatisticalmethod: ANN can be used as a alternative method for mathematical, statistical and mechanistic model where ANN gives less error than other models.

References:• Artificial Neural Network by Wikipedia, the free encyclopedia http://en.wikipedia.org/wiki/Artifi cial_neural_network.• Neural Network by Christos Stergiou and Dimitrios Siganos http://www.doc.ic.ac.uk/~nd/surprise_96/ journal/vol4/cs11/report.html#Introduction%20 to%20neural%20networks• Chattopadhyay, R., and Guha, A., “Artificial Neural Networks: Applications to Textile”, The Textile Institute, Manchester, Textile Progress 2004.• Supervised Learning by Wikipedia, the free encyclopedia http://en.wikipedia.org/wiki/ Supervised_learning.• “Application of Neural Networks in Fabric Engineering “By D. Gopalakrishnan. http://www.fibre2fashion.com/industry-article/ textile-industry-articles/application-of- neural-networks.asp.• “Neural model of the spinning process for predicting selected properties of flax/cotton yarn blends” By : Lidia Jackowska-Strumillo, Tadeusz Jackowski, Danuta Cyniak & Jerzy Czekalski http://www.fibre2fashion.com/ industry-article/8/769/neural-model-of-the- spinning1.asp


• CentralExciseduty:Standard rate of Central Excise duty has been increased from 10% to 12% . Excise duty on Cotton textiles covered under Tariff heading 5204 to 5212 increased from 4% to 6%. • Service Tax:Service tax rate has been increased from 10 to 12%. Number of alignment made to harmo-nies Central Excise and Service Tax. A common simpli-fied registration form and a common return comprising of one page are steps in this direction. Study team to examine the possibility of common tax code for Cen-tral Excise and Service Tax. New scheme announced for simplification of refunds. Rules pertaining to point of taxation are being rationalized. • Textiles:Automatic shuttle less looms fully ex-empted from basic customs duty of 5%. Automatic silk reeling and processing machinery as well as its parts exempted from basic customs duty . Second hand ma-chinery to attract basic duty of 7.5%. Basic customs duty on wool waste and wool tops reduced from 15% to 5% .Basic customs duty on Titanium dioxide re-duced from 10% to 7.5% . Aramid yarn and fabric used for the manufacture of bullet proof helmets exempted fully from basic customs duty. Financial package of Rs. 3,884 crore announced for waiver of loans of hand-loom weavers and their cooperative societies. Two more mega handloom clusters, one to cover Prakasam and Guntur districts in Andhra Pradesh and another for Godda and neighboring districts in Jharkhand to be set up. Three Weaver’s Service Centers one each in Mizoram, Nagaland and Jharkhand to be set up for providing technical support to poor handloom weav-ers. Rs.500 crore pilot schemes announced for promo-tion and application of Geotextiles in the North East-ern Region. A power loom mega cluster to be set up in Ichalkaranji in Maharashtra with a budget allocation of 70 crore. Excise duty of 10% is applicable to branded readymade garments with abatement of 55% from the Retail Sales Price. Along with increase in duty to 12% the abatement enhanced to 70%. As a result, the inci-dence of duty as a percentage of the Retail Sales price would come down from 4.5% to 3.6%. • Manufacturing Relief proposed to be extended to sectors such as steel, textiles, branded Readymade garments, low-cost medical devices, labour-intensive sectors. Producing items of mass consumption and

matches produced by semi mechanized units. • Tax Audit Turnover limit for compulsory tax audit of account and presumptive taxation of SMEs to be raised from 60 lakhs to 1 crore. • ForeignDirect Investment (FDI) Efforts to arrive at a broad based consensus in consultation with the State Governments in respect of decision to allow FDI in multi-brand retail up to 51 %• InfrastructureandIndustrialDevelopment:During Twelfth Plan period, investment in infrastruc-ture to go up to 50 lakh crore with half of this, expect-ed from private sector. Tax free bonds of `60,000 crore to be allowed for financing infrastructure projects in 2012-13. • NationalManufacturingPolicyNational Manufac-turing Policy announced with the objective of raising, within a decade, the share of manufacturing in GDP to 25 per cent and creating of 10 crore jobs. • Micro, Small and Medium Enterprises Rs.5,000 crore India Opportunities Venture Fund to be set up with SIDBI. To enable greater access to finance by Small and Medium Enterprises (SME), two SME exchanges launched in Mumbai recently. • SkillDevelopment Projects approved by National Skill Development Corporation expected to train 6.2 crore persons at the end of 10 years. Rs. 1,000 crore allocated for National Skill Development Fund in 2012-13. To improve the flow of institutional credit for skill development, a separate Credit Guarantee Fund to be set up.

Reference: Texprocil ( The cotton Textiles Export Promotion Coun-cil of India)

UNION

UNION BUDGET 2012-2013

Mr. Pranav Mukherjee, Finance Minister, Quote : Economic policy, as in medical treatment, often requires us to do something, which, in the short run, may be painful, but is good for us in the long run. Quoted Shakespeare’s helmet words: i must be cruel only to be kind…..!!!

UNIONBUDGET2012-13


CORPORATEFUN

Quiz:1

1- Autobiography of Krishna Kumar Manglam?

• Beyond Last blue Mountain• Brushes with History• It Happen in India

2- Viscose Rayon is which type of fiber? Natural Synthetic Semi Synthetic

3- World’s Highest Exporter of Cotton Fiber? USA INDIA CHINA

Quiz:2Design a Page Textile Magazine Cover. Best design gets a certificate from company and Gets opportunity to show their talent in magazine also a Surprise Gift.

Quiz:3 Suggest Tagline for Magazine: Textile Value ChainWinners will get Surprise Gift + Certification + Recognition in Publication media.

Quiz:4 Textile and Garment industry Best College in terms of Education is……………………..

Winner of College gets Surprise gift +Complementary article in our next issue.

Quiz:5 Textile and Garment industry is Best because………………………………..

Kindly send your Quiz answers / layout before 20th June, 2012, by soft copy or hard copy. You can E-mail us: [email protected] Mail us: Innovative Media and Information Company189/5263, Sanmati, Pantnagar, Ghatkopar (East), Mumbai – 400075, Maharashtra, India.

Upcoming Issue: July 2012 Highlights…

• Cover Story : Siyaram Corporate and Brands • Skill Gap Analysis: more analysis Sector wise• New Career Opportunity• More analysis on textile industry in different Perspective. • More Corporate Quizzes, fun...


CORPORATEQUIZ

Corporate Quiz

April - June 2012 ( Volume 1, Issue 1)

Documents

Transcript of April - June 2012 ( Volume 1, Issue 1)