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Contents6 Editorial

industry update8 NegativetostableoutlookforIndiantextiles–Fitch26 China’stextileindustrysetforfurthergrowth54 Italiantextilemachinerysectorcautiouslyoptimistic66 Demandgrowthinemergingmarketsisdriving investmentinnonwovens100 Environmentalimpact,amajorissuefacing textilemanufacturers

2 | The TexTile Magazine February 2012

ShanghaiChunruiopen-endrotorsforIndianmarket

BanswaraSyntextargets rs. 1,000-crore turnover for 2011-12

18cover story

IndoramalaunchesInviyaIndia’s first spandex filament yarn facility to be commissioned

10

20

corporate news32 Technicaltextiles,thenewgrowthengineforArvind34 Rieterretainsmarketsharedespiteglobaluncertainties38 Trident’syarnexpansionplantinPunjabcommissioned46 Raymondincreasingfocusonsemi-urbanmarkets50 OerlikonNeumagsellsstaplefiberplantforgeotextile productiontoIndia70 Vardhmanexpectsindustrytostabilisefromnowon80 TeFocpartnersglobalgiantstosupportIndiancustomers


Coimbatore textile

industry

speCial edition on

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Contents

product news40 NikeacquiresDyeCoo’suniquewaterlessdyeingtechnology44 sETEx’computer-basedcontrollers,energymanagement62 Grundfosofferseffectivepumpsolutions72 Graficaunveilsdirect-to-garmentscreenprintingmachine74 Rieterofferofspinningtrialstocustomers82 Groz-Beckerttoenhancecircularknitting,weavingefficiency84 LloydElectric’sbigforayintodryaircoolingsystems86 Dilo’smanufacturingsolutionsfornon-wovensegment88 Corinodebutintodigitalprinting

events90 ExhibitorshappyoverpositivesignalsatHeimtextil201296 TAImeetonvalueadditioninhometextileswellattended

Sportkinganemergingleaderinyarn,fabrics&apparels

56

lectra announces fresh investments in india

64

itema sultex a 9500 sets fresh benchmark in air-jet weaving

28

USTER’sspecialtestingtools for filamentyarnproducers

76

export scenario still grimIt is distressing to note that the Indian tex-

tile industry hasn’t reaped the full benefits of the sustained fall in rupee against the dollar that gave India a distinct advantage over its Asian rivals in terms of export competitive-ness. Termed “the worst performing cur-rency in Asia”, the rupee declined by over 13 per cent against the US currency during July-December 2011. However, this has not manifested itself in higher sales. Not that In-dia’s competitors in Asia fared better. Bar-ring China, all others in the region are also passing through a critical phase, with their exports dwindling, but not definitely to the extent that India suffered. The general slump in exports is traceable to the US and Western retailers drastically reducing orders over fears of shrink-age in demand in the coming months. This is also due to the Western buy-ers preferring products from suppliers in close proximity to the EU and the US, which together account for more than 60 per cent of India’s textile exports.

It is in this backdrop, with individual economies across the world fac-ing an unprecedented slowdown, that the Textile Ministry has so far not been able to formulate a special policy to meet the export challenges faced by Indian exporters. This, after the formation of six high-level commit-tees with representatives from different ministries and departments to work out an appropriate strategy to tackle the crisis facing the largest exchange earner for the country. Obviously it is not possible to realise the textile ex-port target of $33 billion fixed for 2012-13 against $28 billion for 2011-12, given the stiffer competition from China, Pakistan and Bangladesh.

Meanwhile, what has come as a big surprise to thousands of textile com-panies in the country is the outright rejection by the Government and RBI of the proposal for restructuring textile loans, thereby enhancing the refinanc-ing risks involved. This would be a further blow to the mills with higher working capital debt and falling revenue. Higher inventories, coupled with liquidity pressures, have forced the mills to put off buying of cotton and other raw materials till the situation returns to normal. The only redeeming feature in an otherwise grave situation is a low-cost interest regime likely to be ushered in by the forthcoming Union Budget. Lower interest rates with infusion of higher liquidity into the system would benefit all industry sectors, including textiles.


52ndanniversarye d i t i o n

R.Natarajan,ManagingEditor&Publisher

PublishersGopali & Co., Quanta Zen building, No.38, Thomas road, 2nd Street, Off. South boag road, T.Nagar, Chennai-600017. Ph.: 24330979, 42024951. Fax: 044-24332413 email: [email protected] [email protected]: www.indiantextilemagazine.comFounderM. rajagopalanMentorrajagopalan KalidasanManagingEditor&Publisherr. Natarajan (Mobile: 9381062161 (r) 24343475)AssistantEditorK.N. ananthanarayanan (Mobile: 9003053132)ExecutiveEditor&GeneralManagerK. Gopalakrishnan (Mobile: 9840897542)EditorialCorrespondentN. balasubramanian (Mobile: 9840597082)email: [email protected] MarketingG. MohanN. ananthanDesignere. MarimuthuMumbair. balasubramanianG 102, Shrinagar Co.Op. Housing Society, P.L. Lokande Marg, Chembur (West), Mumbai - 400 089. Ph.: 022-25252377. Cell: 9323711291. email: [email protected] KalidasanFlat No.a1-42, TVH ekantaNo.5/179, Masakalipalayam roaduppilipalayam, Coimbatore 641 015.Cell: 97909 26388email: [email protected]. SaravanambS 23, 2nd Floor, block ‘b’ Ittina Neela, Nr. Gold Coins Club, andapura, electronics City P.O.,bangalore - 560 100. Cell: 9880974765email: [email protected] / aINeC / IFSMaNedited & Published by r. Natarajan on behalf of Gopali & Co., Quanta Zen building, No.38, Thomas road, 2nd Street, T.Nagar, Chennai-17, and Printed by b. ashok Kumar at rathna Offset Printers, 40, Peters road, royapettah, Chennai-14The views presented herein are those of the authors. They are not necessarily the views of the editor.All rights reserved. Neither this publication nor any part of it may be reproduced in any form or by any means, nor may it be printed, photocopied or stored on microfilm with-out the written permission of the publisher.

TexTile MagazineTHE


negative to stable outlook for indian textiles – Fitch

industry update

Fitch Ratings has stated that the outlook for Indian cotton textiles is negative to stable in 2012, while the outlook for Indian synthetic textiles is stable.

Margin pressure persists for both cotton and synthetic textiles driven by rising wage costs and power costs (in-cluding shortage of power), and higher interest rates. Cotton textiles are also facing challenges of a slower demand pick-up and a loss of margins. However, recov-ery is expected from the falling cotton prices, subject to any further volatility in input costs or forex move-ments. Synthetic textiles benefit from higher demand for blended textiles, although margins can turn volatile in sync with crude oil price volatility.

Weak demand for cotton and cotton products in YTD FY12 was mainly a result of existing inventories causing mills to postpone any fur-ther buying in the backdrop of uncertainty in overseas demand for textiles. Weak demand, labour and power shortage in textile centres such as Bhiwandi and Tiru-pur have led to about 50 per cent of under-used capaci-ties. Instead of adding capacity in India, garment manu-facturers are looking at options of setting up capacity or outsourcing job work to Bangladesh to benefit from the lower cost of production.

Cash losses for cotton yarn manufacturers and lower-end fabric companies in H112 impaired their debt re-payment capacity leading to several instances of over-utilisation of working capital limits. Some Fitch-rated textile companies defaulted in YTD FY12 due to an in-ability to obtain a timely increase of working capital fa-cilities, as banks tightened lending criteria for the sector.

Refinancing risks would increase for distressed textile companies in 2012 as the Reserve Bank of India and the Finance Ministry have rejected the proposal for restruc-turing of textile loans.

FY12 financial leverage will deteriorate for most tex-tile companies due to their higher working-capital debt and lower EBITDA compared with previous year’s, and deleveraging will remain a challenge for the sector in 2012.

Given the challenging operating environment led by the uncertainty over demand growth, volatility in raw

material prices and persist-ent increases in other op-erating costs, coupled with the stress on liquidity, it is unlikely that the sector’s outlook will turn positive. However, if falling cotton prices translate into a reviv-al of demand and capacity utilisation, the outlook on cotton textiles could turn stable in the last two quar-ters of 2012.

The outlook on synthetic textiles may be revised to

negative if raw material prices increase substantially, making synthetic textiles less competitive than cotton. Downside risks to the outlook also include the adverse impact of policy changes and a prolonged demand slow-down.

Fitch-rated Indian textile companies include Rupa & Company Ltd. (‘Fitch A-(ind)’/Stable), Balkrishna Synthetics Ltd. (‘Fitch BBB-(ind)’/Negative), Ginni Filaments Ltd. (‘Fitch B+(ind)’/Stable) and Eastman Exports Global Clothing Private Ltd. (‘Fitch A-(ind)’/Stable).

w

indorama launches inviyaindia’s first spandex filament yarn facility to be commissioned

Cover story

Inviya was launched at the All In-dia Textile Conference held recently in New Delhi by Indorama Indus-tries. Indorama is synonymous with pioneering advancements in manu-facturing of polymers for applica-tions in textile and apparel produc-

tion. With the launch of the spandex filament, the company will bring forth the advantages of this innova-tive technology for the first time in the country.

The revolutionary product is to be produced at the plant in Baddi,

indorama industries ltd.

(iil), part of indorama

Corporation, singapore,

has launched the new

revolutionary branded

spandex product “inviya”,

setting new standard for

innovation. it is now the

only company in india to

manufacture spandex

filament. inviya, the new

freedom fibre, is a hi-tech

spandex filament that will

revolutionise the fashion

industry in india.

Mr.sRIPRAkAsHLOHIA,Chairman,IndoramaCorporation

Byk.Gopalakrishnan


12 | The TexTile Magazine FEBRUARY 2012

Mr. AMit LohiA, M.D., indorama Corporation

Himachal Pradesh, a state-of-the-art production facility equipped with latest technology for the clothing and textiles, lifestyle and medical and surgical industries.

Indorama Corporation plans to invest up to Rs. 1,000 crores within three years in India to produce the

spandex fibre which has various applications like stretch denims and sportswear. The company has lined up a three-phase in-vestment plan, of which the first phase is already completed at an investment of Rs. 400 crores at Baddi. The new plant will start

commercial production by March. Mr. Sri Prakash Lohia, Chairman

of Indorama Corporation, says: “As a frontrunner in introducing new technology in the market, Indo-rama is dedicated to expanding its product portfolio of high value and performance textiles by providing consumers with the world-class

spandex filament closer to home. We, at Indorama, are dedicated to establishing Inviya as the best solu-tion for industries in the textile and apparel sector in the coming years.”

Inviya is specifically conceived for applications expanding across stretch denim, sportswear, active wear, bottom wear, intimate gar-ments, innerwear, socks, and surgi-cal & medical applications.

According to recent studies, the spandex usage in India is grow-

ing at 15-20 per cent per year as compared to world’s expected growth of 7-8 per cent per year.

Direct consumption of bare span-

dex in the country currently stands around 6,000-7000 tons per annum, all of which is imported. In the light of the rapid growth in the organised retail segment and branded clothing market, it is a natural step for IIL to invest in Inviya.

Indorama Corporation is a global manufacturer of textile raw materi-als (premium spun yarns, polyester fibre / filament yarns, and woven fabrics), petrochemicals and medi-cal / surgical gloves. Indorama’s current revenue is over $8 billion with its products being shipped to more than 90 countries across the world. It has more than 19,000 em-ployees worldwide. The company is the largest polyester producer in the world and the second largest pro-ducer of polyolefins in Africa.

Mr. S.P. Lohia is the Chairman of the Board and Mr. Amit Lohia the Managing Director in the Indorama Corporation. Established as a spun-yarn manufacturing plant in 1976 in Indonesia, Indorama Corporation to-day is a leading Asian organization with 38 manufacturing facilities in more than 19 countries. It has won the Primaniyarta Award for Best Export Performance five times from the Government of Indonesia in the category of foreign investment.

Inviya will be commercially pro-duced using the dry spun continu-ous polymerization technology and equipment from Italy, PRC and Japan. It is a zero waste discharge plant and will have a capacity of 15,000 tons per year in a phased manner, with current capacity being 5,000 tons per year.

Inviya stands for freedom of ex-pression, freedom to be original,

corporate news

TM-Feb-12-final.indd 12 2/22/2012 4:28:33 PM


big spurt in demand for elastane fibres seen

Corporate news

demand for elastane fibres, known as

spandex in the us and parts of asia,

is set to grow considerably according

to a new report, “stretch fibres and

fabrics: reaching new levels of comfort”,

from the business information company

textiles intelligence.In the 10 years to 2010 demand for elastane fi-

bres more than doubled, from around 160,000 tons to over 350,000 tons, and, despite the availability of cheaper substitute stretch materials, it will continue to increase at a rapid pace in the foreseeable future.

Elastane is used in fabrics to impart stretch prop-erties. Such fabrics represent one of the fastest growing categories of the apparel market, thanks to their ability to provide comfort and enhance the ap-pearance of garments. Stretch fabrics will continue to maintain an especially high profile in markets such as workwear and sportswear where freedom of movement is essential.

Growth in demand for the fibre has been attribut-ed to a number of factors, including the rise in sales of garments containing elastane in China, Brazil and India, and an increase in the number of apparel applications for stretch fibres and fabrics. Casual lifestyles supplemented by exercise have spurred demand for garments such as running tights, biking shorts, leotards and swimsuits, for which elastane fabrics are highly suitable.

Demand in the Chinese market is especially high, and it is estimated to have reached 270,000 tons in

2010. In a bid to strengthen its foothold in the Chi-nese market and increase capacity, the US fibre and textile producer Invista announced in May 2011 that it planned to invest more than $227 million in the expansion of its Lycra elastane plant in Foshan, China.

However, as a result of increases in production capacities by several suppliers, the prices of some types of elastane have come under downward pres-sure.

In China there were significant falls in elastane prices in the year to June 2011, and such falls are seen as a pointer to the elastane industry as a whole.

In the future, numerous opportunities will be cre-ated for fabric manufacturers who are able to ad-dress a growing requirement for performance char-acteristics such as comfort and easy care.

However, established producers of elastane fi-bres such as Invista, Hyosung, Asahi Kasei and RadiciSpandex will continue to face stiff competi-tion, particularly from low-cost producers in Chi-na. They will also meet growing competition from manufacturers of other stretch fibres.

Stretch fibres, and elastane in particular, have become indispensable in view of today’s casual lifestyles and growing interest in fitness. But as the market continues to grow, so will the level of com-petition, and prices will come under greater pres-sure. The way forward for companies supplying the market for stretch fibres and fabrics will be to focus on product innovation, improved product quality, enhanced performance and intensive marketing.

16 | The TexTile Magazine FEBRUARY 2012

and recovery, natural look, breathability, functionality, wrinkle-free, shape, comfort and style. Designed for all men and women of all age groups, it comes in practical variants to provide an easy care for garments or person-al products.

IIL has its strong empha-sis on new product develop-ment and technical services to satisfy the working and functional requirements of various end users. It would provide marketing support to create global demand for fabrics produced using In-viya and also provide the

hand-tag support to retailers. The domestic customers of Inviya

shall reap natural advantages of re-lief from currency fluctuations, as it is an import substitute product. It would provide effective longer shelf life to customers, due to domestic production, and ensure the in-time door delivery with an effective dis-tribution network all the country.

According to recent research, Asia accounts for nearly 80 per cent of spandex output in which China ac-counts for nearly 70 per cent of the global spandex production. With the production of Inviya in India, its consumption in the country is bound to go up substantially, resulting in great value addition to the entire val-ue supply chain in the textile indus-try thus enabling Indian companies to pitch for high value and higher margin orders from apparel retailers all over the globe.

wMr. R.D. GuptA, Business head, indorama industries Ltd.freedom of thoughts, and freedom from rigidity of conventional dress-ing. Its applications include, but are not limited to modern-day products such as stretch denim, sportswear, active wear, bottom wear, intimate garments, innerwear, socks and sur-gical & medical applications.

With Inviya, IIL will raise its stature to establishing itself as the global super-market of textile raw materials for the entire apparel and clothing requirements of premium brands worldwide.

In addition to other applications, Inviya will be a trusted brand in modern and contemporary cloth-ing, as it will enhance products with the benefits of durability, stretch

corporate news

TM-Feb-12-final.indd 16 2/22/2012 4:28:37 PM

shanghai Chunrui open-end rotors for indian market

produCt news

In 2005, in technical co-opera-tion with Elitex International s.r.o.. Shanghai Technology developed and successfully introduced its first semi-automated rotor spinning mod-el ET 280 with the characteristic of high performance / price / economy ratio. In 2008 the economic model ET 260 and the high-end model ET 320 were introduced. In 2009 the newest modification of ET 380 was launched into production.

ElitexChunrui rotor spinning ma-chines can now be found nearly eve-rywhere in the textile field satisfying various demands of customers.

Mr. Milos Kubicek says: “It is in-novation that drives Chunrui Tech-nology’s success to serve our cus-tomers. With high-level technology and development, Chunrui people have been making unremitting ef-fort and contribution to the progress of the Chinese textile industry. Af-ter establishing ET 380 firmly in mainland China (more than 500 such machines sold), we decided to spread our wings to other territories, including Latin America (Mexico, Ecuador), Uzbekistan, Iran, Bangla-desh, Indonesia, Vietnam, Thailand and, of course, India”.

shanghai Chunrui

machinery & technology

Co. ltd. is a leading

manufacturer of open-end

rotor spinning machines

in China highly valuing

the concept of quality

and reliability established

by elitex, the inventor of

rotor spinning machines.

Mr.MILOskuBICEk,OverseassalesManager,shanghaiChunrui


The TexTile Magazine February 2012 | 19

“Unlike in Mainland China, ex-pectation of the discerning spinners in these countries is different in adaptation of the technology for a more versatile requirements. Coarse counts, denim counts and now finer counts NE 24, 30, 40 for hosiery as well as weaving, all having different

quality parameters, necessitate the Open End Machine to be truly per-formance oriented. We are proud to say that we are offering to the indus-try ET 380 with superior technol-ogy, excellent price / performance / economy ratio, which meets fully all these expectations”.

Mr. Kubicek adds: “We take our commitment seriously and hence have just completed establishing a very strong marketing network, fully capable of giving expert after-sales service. In Bangladesh our partner is Imminent Technology Ltd. (ILT), Dhaka, headed by Mr. M.R. Karim, Managing Director. In India the job has been entrusted to Orbit Integrat-ed Solutions Pvt. Ltd., Ahmedabad, headed by Mr. Satish Mangaonkar, and Krishna Vardhan Texnology In-dia Pvt. Ltd., Coimbatore, headed by Mr. Krishnasubramanian. Both of them are veterans of our 40 years of exposure to marketing of textile ma-chinery and have handled prestig-ious European, Indian and Chinese machinery. We hope to complete in the next 3 to 4 months the formali-ties, both technical and commercial, with the prospective clients and will be able to have a few installations in India by the end 2012”. w

produCt news

banswara syntex targets rs. 1,000-crore turnover for 2011-12

Corporate news

BSL is a vertically integrated tex-tile player engaged in manufactur-ing man-made synthetic blended yarn, wool and wool mixed yarn, all types of suiting and jacquard furnishing and technical fabrics, be-sides production of trousers, jackets and made-ups.

Initially BSL started as a spinning mill with 12,500 spindles. Since then the company has been continuously

expanding capacity, diversifying into newer segments and modern-izing its plants. Over the last three decades, it has increased the spin-ning capacity to 1,43,240 spindles.

The company commenced produc-tion of fabric from 1993, readymade garments from 2004 and made-ups and worsted spinning from 2008. It has also entered into a 50:50 joint venture with Carreman Michel Thi-

banswara syntex ltd.

(bsl), established in 1976

as a joint venture with the

Government of rajasthan,

is one of the largest

producers of lycra blended

woven fabrics and also

technical and jacquard

fabrics. the company

clocked a turnover of rs.

800 crores in 2010-11

and has set a target of rs.

1,000 crores for 2011-

12. the company exports

about 65 per cent of its

production to developed

countries like the us, the

uK and europe.

Mr.R.L.TOsHNIwAL,Chairman&M.D.,BanswarasyntexLtd

Byk.Gopalakrishnan



erry Group (CMTG) of France.BSL is one of India’s biggest in-

tegrated textile manufacturers pro-ducing all types of fabric, i.e., poly viscose, poly viscose lycra, 100 per cent cotton and its mix, all wool and wool blends, linen, etc. It is the larg-est producer of PV Lycra fabric in the country (annual production is almost three times that of the rest of producers in India). It also offers complete package solution from fi-bre to garments in all product range, including technical textiles and shirting fabric.

BSL has been continuously in-vesting on expansion, moderniza-tion and diversification. In 2009-10 it invested Rs. 149.91 crores and in 2010-11 another Rs. 45.85 crores. For 2011-12 it has an investment outlay of Rs. 80 crores.

BSL specializes in producing blends of viscose staple fibre, poly-ester staple fibre, acrylic staple fi-bre, Lycra, cotton, linen and wool. It has a total production capacity of

The Textile Association of India (TAI) Mumbai Chapter honored Mr. R.L. Tosh-niwal with Lifetime Achievement Award for the outstanding service rendered by him.

Mr. R.L. Toshniwal, founder of the com-pany, is currently the Chairman & Man-aging Director of Banswara Syntex Ltd. He is also Chairman of Carreman Fab-rics India Ltd.

Mr. Toshniwal graduated in 1954 from VJTI, Mumbai, in Textile Technol-ogy. He did his MSc. from Leeds Univer-sity, UK, in 1958. He started his career as a Sales Manager in Taxmaco Ltd. and later on worked for 18 years with various spinning and weaving mills in different ca-pacities. Under his leadership, the com-pany has bagged various export awards from prestigious institutions.

32,220 tonnes of yarn per annum. This includes 30,600 tonnes of poly-ester blended dyed yarns and 1,620 tonnes of wool mix. The company also specializes in producing vari-

Finishedfabricinspection

Corporate news

lifetime achievement award for r.l. toshniwal

Mr. A.B. Joshi, Textile Commissioner, handing over theAwardtoMr.R.L.Toshniwal


ous types of fancy spun yarns. The present installed capacities are as ring spindles -1,28,248, worsted yarn spindles -14,400 and air jet spindles -592.

Fabric-Weaving&Processing

BSL produces hi-quality, hi-per-formance textile wear, technical & jacquard finished fabrics for both domestic and overseas markets. It has a highly qualified, skilled and

dedicated technical team where we produce textile fabrics from fibre stage to yarn, weaving, finishing and garmenting.

The company’s specialty textiles include stretch fabrics which are Lycra assured and accredited, spe-cialty finishings like stain, wrin-kle, moisture management, two zone fabric, fire-retardant fabric, fabric design and development in-novations and laminated technical fabric.

BSL has 250 shuttleless looms, 24 jacquard looms and five mil-lion metres per month of fabric processing capacity. Readymadegarments

BSL’s garmenting units are lo-cated in Daman and Surat. At both these locations, it specializes in production of trousers and jack-ets, thereby making BSL a com-plete vertically integrated textile

spinningunit

suratsEZunit

Mr. Toshniwal has headed various organizations like the Rajasthan Textile Mills Association, Indian Spinners’ As-sociation and CITI. He is also a member on the committee of the National Fibre Policy.

He has received various prestigious national awards in the field of textiles. He is also associated with various ed-ucational and charitable institutions which work for the betterment of soci-ety.

BSL is a Government recognized Trading House and has won the High-est Export Performance Award from SRTEPC for the last eight years in a row. It has also won State awards for “Export Excellence” in the last three years from 2005-06 to 2007-08.

Corporate news


dupont’s closer ties with bsl

Mr. Gowri Nagarajan, Business Development Manager, E I DuPont In-dia Pvt. Ltd, says: “What amazes me when I think about Banswara Syntex as a fabric and apparel producer is the fact that the energy for new product develop-ment and perfection in what they set out to do percolates right from the Senior Man-agement in Mumbai to the Shop Floor in Banswara, Rajasthan.

The passion with which the entire Toshniwal fam-ily and senior management like Mr. Hemal Malaviya, Head of Marketing, and Mr. Sajal, Head of Operations, work in delivering value to the customers is quite infectious and rubs through the entire value chain. The entire team loves the challenge of de-veloping new products, and it is a pleasure working with such a team in the industry.

I have personally enjoyed every single interaction with Mr. Ravi Toshniwal and have always left with some interesting Brand/Re-tailer insight and some new ways to tackle the ever-changing require-ments of the downstream custom-ers.

What is popularly called in Du-Pont as the “market-back” ap-proach where one thinks of new developments with the end cus-tomer in mind, this is indeed put to excellent practice at Banswara where their constant dialogue with customers both locally and globally keep feeding them with new ideas to take their developments forward. Being a vertically integrated player right from fibers to garments, they look for ways to incorporate inno-vation into the fabrics in every step of the value chain”.

w

Mr.GOwRINAGARAJAN,BusinessDevelopmentManager,

EIDuPontIndiaPvt.Ltd,

player (i.e., right from conceiv-ing an idea for fabric to the final product ready to wear in the least possible lead-time).

Both these units are equipped with a full complement of high-end machines to manufacture trousers and jackets of the fin-est quality, namely, marking and grading on a CAD system from Rich Peace, Sewing line consists of Juki machines, au-tomatic welting machines from Eagle, curtain felling machines from Union Special, Eyelet But-tonhole machines from Reece and blind loop machines from Mair and the complete pressing process from Rotondi, including leggers, toppers and side seam presses.

BSL has a monthly capacity to manufacture 2,70,000 pieces of readymade trousers and 25,000 pieces of readymade jackets. It is increasing its weaving capacity and almost doubling its garment-ing capacity over the next three years, besides growing yarn dye-ing, cotton and wool dying.

BSL is amongst the few com-panies which survived the textile downturn with its integrated ca-pacity, new product development and strong relationship with its key customers. The company has consistently generated prof-its and has never restructured its debts unlike many others in the textile sector.

w

Corporate news


China’s textile industry set for further growth: Competitors lag far behind

industry update

Despite growing challenges, China’s textile and clothing industry is set for further growth while its competitors suffer declines as a result of cutbacks by retail buyers, according to Textile Outlook International from the glo-bal business information company Textiles Intelligence.

Although the Chinese textile in-dustry faces rising costs, an ageing population and, in some regions, labour shortages, it looks to have done reasonably well in 2011. Dur-ing January-November, its business revenues and profits each rose by 27 per cent while its industrial output was up by 11 per cent, year-on-year.

These figures were met with some disappointment, however, on the grounds that the profit growth rate during this period was 14.7 percent-age points lower than in the first half of the year.

Several other industries in Asia also did less well in the second half of the year as Western retailers cut orders for the spring/summer 2012 season over fears of a slump in de-mand after the Christmas and holi-day season.

Indian apparel exporters missed out on the chance to turn a fall in the value of the rupee into big orders. Described as “the worst performing currency in Asia”, the rupee fell in

value by over 15 per cent against the US dollar between July and De-cember 2011, which provided the industry with an improvement in its competitiveness. However, the im-provement failed to manifest itself in increased sales.

Even the industry in Bangladesh – which has enjoyed dramatic growth in investment and exports in recent years – reported a downturn in its exports to the US during the first four months of the country’s 2011-12 financial year.

In Pakistan apparel exports are ex-pected to fall by 30 per cent in the whole of the 2011-12 financial year, with buying reported to be down by


half in some cases. Nervousness in the West has led

buyers to make purchases close to the season, and this is benefiting suppliers in close proximity to the world’s two major markets – the EU and the US. Furthermore, Nike and Adidas have recently announced plans to increase production in South America. However, it is not their intention to replace China, and Asia in general, as a source but rath-er to complement it.

If there has been a shift closer to home, the evidence is far from dra-matic. In the 12 months to October 31, 2011, US apparel imports from member-countries of the US-Central

America-Dominican Republic Free Trade Agreement (CAFTA-DR) were up by only 2.6 per cent. Admit-tedly, imports from China over the same period were down by three per cent, but this is hardly a sea-change.

And looking at investment figures, it is difficult to foresee a massive switch in production any time soon. Indeed, shipments of many types of fabric machinery to Chinese mills surged to record levels in 2010, and the Chinese textile industry re-mained by far the largest investor.

In particular, the Chinese industry accounted for 84 per cent of global shuttleless loom shipments in 2010 and Asia as a whole for an over-

whelming 97 per cent. In the case of circular knitting machinery, China accounted for 77 per cent of global shipments and Asia for 92 per cent. And in electronic flatbed knitting machinery China accounted for 74 per cent of global shipments and Asia for 94 per cent.

Furthermore, despite mounting pressures from rising costs, waning demand, restrained capital supplies and a shortage of funds for techno-logical improvements, China’s tex-tile industry is expected to grow at the same rate as, or even faster than, the growth in international trade during 2012.

w

industry update


Cover story

ByGaneshkalidasan


itema has a tradition of

more than 150 years with an

installed base of over three

lakh weaving machines..

with global presence in

more than 100 countries

ensuring a fast and reliable

service, itema is legendary

for being the sole provider

of three shuttleless weft

insertion systems. Besides the Rapier and Air jet,

it has the proven Projectile tech-nology. The three brands – Sultex, Somet and Vamatex – guarantee the right weaving machine for any type

of woven fabric. From commodity to high-fashion or industrial fabrics, ITEMA has the right weaving ma-chine for it.

I Whether your re-quirements call for the most flexible rapier technology, a projec-tile weaving machine for demanding tech-nical fabrics or high performance air-jets with the lowest air consumption, ITEMA Weaving is the ideal partner.

The ever-increasing quality criteria for high-end machinery are satisfied by the top-class weaving ma-chines with the three

different technologies (rapier, air-jet and projectile) that only

ITEMA Weaving can offer. The Vamatex Silver 501

confirms its position as the benchmark in

cotton weav-ing, particu-larly for high-class shirting fabrics. The terry version Vamatex Silver Dynaterry will d e m o n s t r a t e its excellence

in combining high productivity and top quality weaving of terry towel or bathmat fabric.

Special machines are designed by

the Customized Weaving Technol-ogy (CWT) Group. CWT applica-tions are the first choice for heavy industrial textiles with a fabric width up to 655 cm and beat-up force up to 15’000 N/m.Indianoperations

ITEMA Weaving (India) Private Ltd. was formed on January 1, 2008, by merging Sultex (India) Private Ltd. with Promatech Division of ITEMA India to look after sales, service and spare parts business of Promatech (Somet and Vamatex products), Sultex (Products) and the ITEMA Shanghai-assembled weaving machines. The merger has given synergy in sales and service activities of the company which will benefit all the customers of Sultex,

Mr.GERALDHuNZIkER,Director-sales,ITEMA

Cover story


Vamatex and Somet.Since inception of Indian opera-

tions, ITEMA Weaving has sold on an average 300-350 machines every year.

The Alpha PGA is the most flex-ible machine with regard to insert-ing different weft materials and yarn counts into the same fabric (e.g., upholstery). This provides more flexibility, higher efficiency of pro-duction and convenience for style changes. It also weaves an unlimited range of fabrics and materials at a high production level.SultexA9500

Sultex A9500 is the latest in air-jet technology which was unveiled at ITMA Barcelona in September. It was a major attraction for custom-ers there. With its high performance

and simplified design, the air-jet weaving machine sets new standards for pro-ductivity and operational simplicity. No compro-mises were made during its designing. It ensures excel-lent fabric quality with low air consumption.

Unique in concept, the machine is equipped with a special shed geometry designed to promote a long dwell while drastically re-ducing air consumption. The long weft insertion time and the high efficient nozzles insure the opti-mum acceleration curve for any type of yarn. The full color touch screen display offers new functionalities and opens the door to an efficient dialogue with the

ITEMA Service Network. The Sultex A9500 air jet weaving

machine is best suited for medium to heavy denim, colored weaving and sheeting applications. Apart from installations in Italy, Germany and China, the machine has already been supplied to two weaving mills in India. LoomBrowser

The LoomBrowser is a software package that brings all production data and setting data present in the weaving machine to the compu-ter. Its installation on the PC of the customer’s choice helps to monitor the efficiency, change and down-load machine settings and create or download new weft and dobby pat-terns. Simple clicking on the ma-chine of their choice, within the ma-

chine layout, will give them access to all machine information.

The software package monitors efficiency, stop levels and technical status, facilitate change & download machine settings, create or down-load new weft and dobby patterns, and up & download shift schedules.

ITEMA is only company that can offer a solution for any need, no matter how difficult it is. It is the company with the right products for high-fashion and specialized indus-trial fabrics.

The Customer Day function re-cently conducted by ITEMA at Erode and Madurai was well attend-ed by the technicians and millown-ers in that region.

Mr. Gerard Hunziker, Sales Direc-tor for India, explained in details of the machines’ special features and how it benefits customer in terms of productivity, quality and cost of operation.

Mr. Tapas Nandi, President & Country Head, welcoming the gath-ering, spoke on infrastructure of ITEMA Weaving India. Apart from its strong Sales and Service set-up, the Electronic Repair Centre in Coimbatore has special instruments to repair all electronics cards of ITEMA machines economically and within the shortest possible time.

The function was an amazing plat-form for a casual interaction among customers and manufacturers which gave the organizers a chance to in-teract with the customers in South India. Mill owners and technicians got understanding of the products and services that ITEMA had to of-fer their customers.

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Mr.TAPAsNANDIPresident&CountryHead,ITEMAIndia

Cover story


Fromright,Mr.TapasNandi,President&CountryHead,ITEMAIndia,Mr.Ramesh,Manager,Mr.subramaniam,Chairman,Mr.Jayaraman,M.D.,Mr.senthil,ManagerBalavignaweaving,Dindigul,Mr.GeraldHunziker,Director-sales,ITEMA,Mr.Varghesexavier,sr.Managersales,Mr.Palanisame,Managerservice&ERC,Mr.saravanan,sr.Engr-service,Mr.RajiniMgrspareParts&service,ITEMAIndia

TeamITEMAweaving

From rightMr.Gk.Venu,sr.Manager, ITEMA,Mr.Arulsamy,ChiefGeneralMgr,NTC,andMr.Varghesexavier

Mr.Jayaraman, lighting thetraditionallamp

Mr.R.sethuraman,Adviser,CHRIsTYTerryTowel


technical textiles, the new growth engine for arvind

Corporate news

Arvind Ltd., one of the largest integrated textile, ap-parel and branded apparel players, is now relying on advanced materials and the technical textile segment as a new growth engine.

Mr. Jayesh Shah, Director & Chief Financial Officer, said: “We have made in-vestments in manufacturing technical fabrics in a small way and experimenting with some of the industrial and functional fabrics which go into the manufacturing of fire-retardant and bullet-proof fabrics”.

Arvind has recently signed a joint venture agreement with PD Fibre Glass Group of Germany for manufacture of glass fabrics in In-dia. Fabrics made out of glass fiber are primarily used for making wind blades, and commercial production is expected to commence in April.

“We are also currently studying a project of non-woven fabrics used for making tissues and other things. We are looking at this as a next area of growth for us. Our plan is that this business would grow upto Rs. 500 crores in three years time”, said Mr. Jayesh Shah.

Arvind has registered an 8 per cent growth in consolidated net profit from ordinary activities of Rs. 52 crores. Its revenue increased 19

per cent to Rs. 1,190 crores while EBIDTA improved 40 per cent to Rs. 180 crores. The growth in profits came even after writing off Rs. 38 crores foreign exchange losses dur-ing the quarter.

Net profit after extraordinary in-come stands at Rs. 243 crores as the company earned extraordinary in-come of Rs. 191 crores (net of tax) from sale of its stake in the JV com-pany VF Arvind Brands Pvt. Ltd.

Commenting on the results as well as outlook of the company, Mr. Jayesh Shah observed: “The reve-nue growth of 32 per cent in branded apparel and retail business segments and 21 per cent revenue growth in textile business were the key drivers for improved financial performance at the consolidated level. We hope to achieve 18 per cent growth in rev-

enue during the current finan-cial year. While cotton prices have softened, the selling prices have adjusted down-wards ahead of full benefit of lower cotton prices which may marginally impact the operating margin in the fourth quarter. While its established business continues to do well, the company is focusing on advance materials and the technical textile segment as the new growth engine.”

Textile revenue grew by 21 per cent led by 27 per cent growth in denim and 17 per

cent growth in shirting/khaki fab-rics. The company sold 23.6 million metres of denim and 17.6 million metres of shirting/kakis in the third quarter of 2010-11.

The company’s denim capacity continues to be about 108 million metres, and the shirting capacity would be now 84 million metres. For the current year, Arvind Mills has made total capex of Rs. 350 crores, which included Rs. 200 crores for capacity expansion in shirting busi-ness.

Arvind’s key brands are Ar-row, US Polo and Flying Machine. Across the board there has been a growth of 25-40 per cent, the high-est growth of course is in US Polo where the growth is 44 per cent, ac-cording to Mr. Jayesh Shah. w

Mr.JAYEsHsHAH,Director&CFO


rieter retains marketshare despite global uncertainties

Corporate news

Rieter recorded appreciable growth in the 2011 financial year. Sales rose by 22 per cent to 1,060.8 million CHF. Orders received were 34 per cent lower than the excep-tionally strong outcome in the previ-ous year, but remained at a healthy level of 958.3 million CHF.

Rieter still has a good backlog of orders in hand. The figures as of December 31, 2011, are the first re-ported by it for a full financial year in the new structure which came into effect on May 13, 2011, following the separation of the Rieter Group. Since then Rieter has been an in-dustrially focused supplier of ma-

chinery and components for staple fiber spinning mills. It will publish final figures and its annual report on March 21, 2012.

The boom in demand on the world market for textile machin-ery and components experienced in 2010 continued in the first quar-ter of 2011. The investment climate started to cool off as of the second quarter. The high cost of cotton and declining yarn prices intensified pressure on spinning mills’ mar-gins and liquidity. The second half of the year was also dominated by uncertainty due to the trend in raw material prices and prospects for the

global economy. As of the second quarter the

market retreated to a lower level compared with the previous year. Demand for yarns also declined in 2011. However, spinning mills were able to reduce yarn inventories to some extent again in the second half of the year.Orderintakeaffected

Orders totalling 958.3 million CHF received by Rieter in 2011 were 34 per cent lower than the very high figure recorded in the previ-ous year (-31 per cent in local cur-rencies). The decline occurred in particular as of the second quarter and affected both business groups. While orders received by Spun Yarn Systems were 36 per cent lower at 775 million CHF, at Premium Tex-tile Components they declined by 22 per cent to 183.3 million CHF (-34 per cent and -17 per cent respec-tively in local currencies). Generally speaking, the components business is less subject to market cycles than the machinery business.

Some customers postponed or cancelled orders as a consequence of the disruption on the raw mate-rial and yarn markets. Most cancel-lations affected orders placed in the peak year of 2010. Rieter, therefore, adjusted its order book by a total of 112.6 million CHF in the second half of 2011. Excluding cancella-tions, orders received in the second

Mr.PETERGNAEGI,ExecutiveVicePresident,Rieter


half of the year amounted to 399.6 million CHF. Orders in hand at year-end were slightly over 600 mil-lion CHF.

China, Turkey and India were the sources of the largest volume of or-ders. Other important markets were South Korea, Indonesia, the US, Brazil, Pakistan and Bangladesh. All in all, Rieter further expanded its market position worldwide in the year under review and gained mar-ket share with attractive products. In China and India Rieter strengthened its market position with a specific offering for the local markets. This shows that Rieter positioned itself well and made the right investment decisions in earlier years.

Due to the high level of orders in hand and increased output at Spun Yarn Systems, Rieter’s sales rose

overall by 22 per cent compared with the previous year, to 1,060.8 million CHF (+27 per cent in local currencies). The Spun Yarn Systems Business Group posted a 28 per cent increase in sales to 861.7 million CHF. Sales at the Premium Textile Components Business Group in-creased by 4 per cent to 199.1 mil-lion CHF. In local currencies Spun Yarn Systems grew by 32 per cent and Premium Textile Components by 11 per cent.Profitoutlook

Rieter achieved disproportionate growth in profitability in the 2011 financial year as a whole. The com-pany expects to post an operating margin (EBIT) in the double-digit range for 2011. The final figures for 2011 and the annual report will be published on March 21.

Rieter is a leading supplier on the world market for textile machinery and components used in short staple fiber spinning. Based in Winterthur (Switzerland), the company devel-ops and manufactures systems, ma-chinery and technology components used to convert natural and man-made fibers and their blends into yarns.

Rieter is the only supplier world-wide to cover spinning preparation processes as well as all four final spinning processes currently es-tablished on the market. With 18 manufacturing locations in nine countries, the company employs a global workforce of some 4,700, 28 per cent of whom are based in Swit-zerland.

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Corporate news


trident’s yarn expansion plant in punjab commissioned

Corporate news

trident ltd. of the rs. 3,600-crore trident

Group has announced the commissioning of

its new yarn spinning unit - tys-5 with an

installed capacity of 65,280 spindles at its

sanghera facility in barnala in punjab.The expansion project of the yarn spinning facilities,

being implemented in a phased manner, envisages setting up of 275,904 spindles and 2,040 rotors, including the other balancing equipment, at a total cost of Rs. 1,117 crores. The project will be completed by the third quarter of 2013.

With this commissioning, the total yarn spinning ca-

pacity of the company has increased to 2,89,728 spindles. The new plant, equipped with the latest state-of-the-art technology, manufactures combed yarn in the count range of 20s and 40s. It uses the latest link system, automatic roving transport and Auto Wast collection systems ensuring higher productivity, process consistency and security and reduced human touch.

With the addition of the new manufac-turing facilities, the primary focus of the company would be more on value-added products for the niche segment of high-end international and domestic markets.

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Mr.RAJINDERGuPTA,ManagingDirector


nike acquires dyeCoo’s unique waterless dyeing technology

produCt news

The partnership is illustrative of Nike’s long-term commit-ment to designing and developing the most superior perform-ance products for athletes and its overall sustainable business and innovation strategy.

“Waterless dyeing is a significant step in our journey to serve both the athlete and the planet, and this partnership reinforces Nike’s long-term strategy and deep commitment to innovation and sustainability,” says Eric Sprunk, Nike’s Vice President of Merchandising and Product. “We believe this technology has the potential to revolutionize textile manufacturing, and we want to collaborate with progressive dye houses, textile manu-facturers and consumer apparel brands to scale this technology

and push it throughout the industry.” Nike has been exploring this technology for the past

eight years and expects to showcase cutting-edge ap-parel using textiles dyed without water at events

later this year, with an eye on scaling the tech-nology for larger production volumes.

“We’re very excited to be partnering with Nike to help drive this together and believe the benefits and impacts of this technology are significant,” says Reinier Mommaal, CEO of DyeCoo. “There is no water consumption, a reduction in energy use, no auxiliary chemi-cals required, no need for drying, and the process is twice as fast. The technology can also improve the quality of the dyed fabric, allows for greater control over the

dyeing process, enables new dye capa-

nike, inc. has entered into a strategic partnership with dyeCoo textile systems b.v., a netherlands-based company that has developed and built the first commercially available waterless textile dyeing machines. by using recycled carbon dioxide, the dyeCoo technology eliminates use of water in the textile dyeing process.

Mr.ERICsPRuNk,VicePresident-MerchandisingandProduct,Nike


bilities and transforms fabric dyeing so that it can take place just about anywhere. We hope more industry leaders will join us in leveraging this innovative technology in the near future.”

Conventional textile dyeing re-quires substantial amounts of water. On average, an estimated 100-150 liters of water is needed to process one kg of textile materials today. Industry analysts estimate that more than 39 million tonnes of polyester will be dyed annually by 2015. Nike says it expects DyeCoo’s supercriti-cal fluid carbon dioxide, or “SCF” CO2 dyeing technology, to have a particularly positive impact in Asia, where much of the world’s textile dyeing occurs.

As this technology is brought to scale, large amounts of water used in conventional textile dyeing will no longer be needed, nor will the

commensurate use of fossil fuel-generated energy be required to heat such large quantity of water. The re-moval of water from the textile dye-ing process also eliminates the risk of effluent discharge, a known en-vironmental hazard. The CO2 used in DyeCoo’s dyeing process is also

reclaimed and reused. DyeCoo is believed

to be the first company to successfully apply the SCF CO2 process to the commercial dye-ing of polyester fabric, and research is already underway to apply the technology to other natu-ral and synthetic fabrics. The technology is safely utilized at scale in other industries such as the de-caffeination of coffee and the extraction of natural flavors and fragrances.

DyeCoo Textile Sys-tems B.V., founded in March 2008, is the

world’s first supplier of industrial CO2 dyeing equipment and is a leading innovator in CO2 dyeing technology and processes. DyeCoo is a spin-off of the Dutch Feyecon Group, an innovator in the field of CO2 process technology. w

produCt news


setex’ computer-based controllers, energy management solutions

produCt news

setex schermuly

specialises in computer-

based control systems and

software solutions for the

textile industry. Hard and

software are developed

at its mengerskirchen

headquarters, and sales

and support worldwide is

handled via subsidiaries and

partner companies. voltas

ltd. is the setex agent in

india.Setex’ product range includes in-

dustrial PCs for the fully automatic control of continuous and discon-tinuous textile machinery, PPS sys-tems and control stations for higher ranking systems for the control of the complete finishing, PLC con-trols, sensors for dye machines, dry-ers for textile finishing and the CCD camera system for automatic control of the fabric density and shrinkage (overfeed) control.

By using the latest technologies and by running a large number of service and sales stations world-wide, SETEX has emerged a world-wide specialist for automation sys-tems in dye houses and finishing plants. It develops and supplies for a vast number of world brand textile machinery manufacturers its premi-um solutions. Mr.JüRGENJERZEMBECk,HeadofMarketing,sETEx

Byk.Gopalakrishnan


Software plays a crucial role in process optimisation, because without appropriate tools no opti-misation can be realised. Process optimisation is exactly on the top of the agenda since costs of energy and raw materials are increasing and textile producers have to com-ply with very specific customer requirements and laws in this con-text. To be more precise, suppliers of software are expected to provide appropriate tools for process opti-mization in order to save chemi-cals, water and energy.

SETEX has enhanced its Orga-TEX machine management soft-ware. Energy efficiency modules are controlling up-to-the-minute process data of each machine and put them into relation with com-pany-specific acceptable levels of gas, electricity, steam, water, hot

water, dump pipe capacities and other re-quirements.

The software b a c k g r o u n d knowledge can trigger active process adjust-ments such as balancing ener-gy loads or real-time production process modifi-cation. The SE-TEX.OrgaTEX Plant Naviga-tor provides the graphical visu-alization of the actual status per machine or an

overview of all machines. The SE-TEX.OrgaTEX Energy Efficiency Module holds the equations of the

decision making process. The ap-plication and customer specific algorithms can easily be accessed and altered by the SETEX formula editor. Thanks to this deep integra-tion, the formulas have access to all necessary data in the OrgaTEX network.

The solution helps to adapt the workflow and infrastructure for greater flexibility and better pro-ductivity. With this system, runt-ime and water consumption savings of more than 15 per cent have been achieved in production. Avoiding power peak loads by balancing en-ergy loads saves cost for the mill and has a positive ecological influ-ence on peak load power stations. Due to the nature of textile finish-ing, the achieved benefits depend on the installed machines, finishing process, articles and performance level of a company.

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produCt news

raymond increasing focus on semi-urban markets

Corporate news

The branded apparel business witnessed a 7 per cent increase in the quarterly sales to Rs. 198 crores and reported an EBITDA of Rs. 29 crores. The branded apparel business has shown strong resilience in a chal-lenging business environment.

Raymond’s retail network has crossed the 800-store mark. The store count as on December 31, 2011, stood at 807, including 40 stores in the Middle East and SAARC region covering over 1.6 million square feet of retail space.

The Indian operations of denim business witnessed a 11 per cent sales growth during the quarter to Rs. 171

crores, while its EBITDA stood at Rs. 18 crores.

Announcing the results, Mr. Gautam Hari Singhania, Chairman & Managing Di-rector, Raymond Ltd., said: “After a robust performance in the first half of the current financial year, the third quar-ter has been more challeng-ing. Consumer sentiment has been impacted mainly due to high inflation. How-ever, we have a strong port-folio of power brands which have shown resilience during these times. Moreover, times like these help us become more efficient and competi-tive. We also believe that this is a short-term phenomenon and the long-term domestic

consumption story in India is well intact. Accordingly, we will continue to focus on our core strategies and strengths and will continue to roll out our retail expansion plan in smaller towns and cities as envisaged”.

To encash fully on the strong brand value the firm has forayed aggres-sively into retail business. It has set up 200 stores in the past three years and has plans to set up 100 stores this year. The firm is largely target-ing Tier III, IV and V cities for fur-ther expansion. It enjoys one of the largest retail networks with 762 ex-clusive stores with over 1.53 million square feet. Majority of these stores

raymond ltd.’s textile

segment (standalone)

sales for the quarter

ended december 31,

2011, registered an

increase of 16 per cent

to rs. 514 crores on

the back of both higher

realizations and volume

growth. the segment

reported earnings before

interest and tax (ebit) of

rs. 104 crores.

Mr.GAuTAMHARIsINGHANIA,CMD



are franchisee operated. The com-pany products are present in nearly 18,000 touch points.

Raymond commands over 60 per cent of the market share in the worsted segment and is the largest integrated textile company.

The Indian apparel market is grow-ing at 11 per cent CAGR. The share of the organized segment is expected to increase much faster. Companies with strong brands like Raymond do benefit most. Restructuring

As its restructuring initiative, Ray-mond is shifting its 7 mmpa worsted fabric manufacturing facility from the high-cost region Thane to low-cost locations of Jalgaon (weaving capacities) and Vapi (finishing ca-pacities). Post restructuring the total capacity of the firm will increase to 38 mmpa, including 14 mmpa at Chindwara and 14 mmpa at Vapi. The facility is totally integrated, in-cluding combing, spinning, weaving and finishing. Major products include poly viscose, poly wool, all wool and recently started cotton fabric.

The company is likely to spend around Rs. 100 crores for modern-izing and re-location of plant. This would enable it to add up additional capacities in a short period of time with minimum capex considering that it would be relocating its exist-ing plant and machinery.

The restructuring is likely to im-prove volume for the firm from 31 mmpa to 38 mmpa. A large part of this business is through B2C model. Cost savings on account of employee expenses and modernization would further improve the margin for the business by 200-300 basis points.

Raymond has entered into a 50 per cent JV with Zambaiti for its shirting fabric manufacturing. Total capac-ity of the unit has increased from 11.5 mmpa to 21.6 mmpa in FY11. This expansion will yield results in the current year itself. Volume from this business is expected to double by FY13E.Closureofloss-makingdenimunits

Restructuring initiatives include closing down the denim manufac-turing facility in Belgium and the US with total capacity of around 40 mmpa. Raymond has a 50 per cent JV with UCO NV Ltd. for its denim facility. Post exiting its loss-making Belgium and US facility, Raymond will have total denim capacity of 47 mmpa, including 40 mmpa at Yavat-mal and 7 mmpa at Romania where the company has a 25 per cent stake. The decision would certainly benefit the firm in the long term.

The firm already has exited its loss-making brands like Zapp and Be Home. Zapp mainly targeted the kidswear segment and Be Home was mainly a home textiles brand. The

move would benefit it by synchroniz-ing its brand portfolio.

Raymond branded apparel busi-ness contributes around 21 per cent to consolidated topline of the company and 15 per cent to the bot-tomline. With increasing presence the business is expected to grow at a CAGR of 15 per cent. The firm has witnessed 10 per cent like-to-like sales growth in FY11. How-ever, growth has slowed down to 5 per cent in H1FY12 due to macro concerns of inflation and interest rates. No near term revival is like-ly. However, demand may stabilize from the current level.

The segment has witnessed chal-lenges in terms of volatile raw ma-terial prices and levy of excise duty on readymade garments. However the firm has successfully passed on the cost increases due to the strong brand presence. This has led to increase in the margin from 10 per cent in FY11 to 16 per cent in H1FY12. Margins are expected to be maintained in the range of 12-14 per cent.

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Corporate news

oerlikon neumag sells staple fiber plant for geotextile production to india

Corporate news

With its Inline plants producing up to 80 tons per day, Oerlikon Neum-ag provides compact lines which are specialised for the needs of nonwo-ven producers. Less operational per-sonnel are needed because spinning and drawing are in a single continu-ous process. With this plant nonwo-ven producers are able to complete the value chain from production of staple fibers to needle-punched non-woven products.

Besides the engineering know-how the worldwide service network

from Oerlikon Neumag with a centre in Baroda are very ben-eficial for staple fibers producers to get the maxi-mum uptime from the equip-ment.

“Geotex t i l e is a very prom-ising market for our short spinning Inline plants which perfectly suits the needs of nonwoven pro-ducers who in-tend to make their own spe-cialized staple fibers”, says Clement Woon,

CEO of Oerlikon Textile. “For Oerlikon Neumag, this

project is a great opportunity in an interesting market with an excellent growth potential. We look forward to realize this project”, says Rainer Straub, Head of Sales Oerlikon Neu-mag.

Oerlikon is a leading high-tech industrial group specializing in ma-chine and plant engineering. The company is a provider of innovative industrial solutions and cutting-edge technologies for textile manufactur-

Mr.CLEMENTwOON,CEO,OerlikonTextileoerlikon neumag has

signed a contract for

an inline plant with 12

spinning positions for

production of staple fibers

for geotextiles. the order

comprises the complete

machine equipment

from spinning to baling,

including engineering and

services of supervision

for erection and

commissioning. start-up

will be at the end of 2012.



ing, drive, vacuum, thin film, coating and advanced nanotech-nology.

A Swiss company with a tradi-tion going back over 100 years, Oerlikon is a global player with more than 16,500 employees at over 150 locations in 38 coun-tries and sales of CHF 3.6 billion in 2010. The company invested in 2010 CHF 239 million in R&D, with over 1,200 special-ists working on future products and services. In most areas, the operative businesses rank either first or second in their respective global markets.

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Corporate news

LIFETIMEsuBsCRIPTIONRs.3,000ONLY

italian textile machinery sector cautiously optimistic

industry update

Provisional figures for 2011 for Italy’s textile machinery sector showed a further increase in manu-facturing production and exports following a good recovery in 2010. This after the widespread recession in 2009 hit machinery manufactur-ers hard.

The value of Italian textile ma-chinery production for 2011 regis-tered a 9 per cent increase compared to 2010, from 2.4 to 2.6 billion eu-ros. A similar increase was recorded for exports (+10 per cent), valued at just over 2.1 billion euros.

Exports remain the driving force behind the sector’s growth in Italy. The dynamism of major textile mar-kets, combined with the ability of

Italian machinery manufacturers to assert themselves on a global scale, contributed to sustained growth in exports. Almost 25 per cent of the sector’s sales abroad are directed to China, with Asian markets generally accounting for 50 per cent of all for-eign sales.

The latest National Institute of Statistics data on Italian exports for the first 10 months of 2011 show significant growth in all markets – European (France +44%, Germa-ny +56%); non-European (Russia +88%, Turkey +83%); American (United States +81%, Brazil +15%, Peru +15%); and Asian (Bangladesh +49%, China +11%, South Korea +53%, Japan +30%, India +22%, In-

in spite of an increase in

production in 2011 by

italian textile machinery

manufacturers, forecasts

remain cautious for the

current year.

Mr.sANDROsALMOIRAGHI,President,ACIMIT



donesia +58%). These are all coun-tries towards which Italian exports had already experienced strong growth in 2010 as well.

On the other hand, demand has re-mained especially weak from the do-mestic market. In Italy, as through-out the European Union in general, current economic uncertainty is hin-dering a recovery in investments, even in the textile industry.

In spite of the growth experienced in 2011, Italian machinery manufac-turers remain extremely cautious for the current year. “Global demand for textile machinery began slowing

last summer. The latter months of 2011 and the beginning of this year have confirmed a setback in new or-ders for many producers. This is a consequence of the current difficult economic condition,” says Sandro Salmoiraghi, ACIMIT President.

“The positive outcome of ITMA Barcelona, the industry’s primary trade fair held last September, pro-vided us with some reasons to be optimistic. However, many deals which had been initiated at the trade fair have not yet been finalized, given the state of uncertainty hov-ering over the future outlook of the

markets. Let’s just say 2012 hasn’t started off with the best of pros-pects. The evolution of the economy over the course of the next quarter will provide a more accurate indica-tion of what the future holds for us, whether to expect a recovery or re-newed stagnation”, he adds.

According to Salmoiraghi, the economic slowdown has also affect-ed and currently affects developing countries as well, including their textile sector. The drop in consumer spending in developed markets has penalized major garment exporting countries, above all China. In 2012 it will be difficult to find markets capable of significantly increasing their installed production capacity.

In hard times such as these, in-stitutions must be as supportive as ever. “Roughly 80% of production in our sector is directed at foreign markets,” attests Salmoiraghi. “This high propensity towards exports, combined with the comparatively small size of our manufacturers, means that they absolutely must be supported in order to face up to in-ternational competition.”

Salmoiraghi’s appraisal for the re-construction of the ICE, the Italian institute for foreign trade, is accom-panied by the hope that the agency will rapidly return to full-scale op-erations.

He concludes: “The ICE is an es-sential element in a mosaic that must be completed with a greater level of support from the banking system, which many Italian SMEs have called upon to ease access to credit during these difficult times.”

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ItaliantextilemachineryexportstoIndia(millionEuro)

ItaliantextilemachineryexportstoIndiabycategories(Jan-oct-2011)

industry update

sportking, an emerging leader in yarn, fabrics & apparels

Corporate news

Sportking is a corporate group based in Ludhiana. The group’s portfolio covers the entire textile value chain, from yarns, fabrics and apparel to retailing, and also features a training facility for textile technol-ogists. Based on the powerful vision of its founder Raj Kumar Awasthi, CEO and Chairman, the group re-gards its mission as investment in socio-economic growth: on the one hand through outstanding perform-

ance, on the other by adapting to modern technologies in business and training. This is what brings Sportking and Rieter together.

Group CEO Munish Awasthi is not only continuing to pursue the existing business in the spirit of his father, but has also implemented a series of expansion plans in a wide range of sectors along the value chain.

Yarn manufacture is the Sportk-

with sales of rs. 3,500

million, sportking is well

on its way to becoming

one of the biggest brands

at all stages of the textile

process, from yarn and

fabric manufacture to

apparel production and

retailing, not only on

the indian market but

worldwide.

Mr.shivkumarsharma,Presidentofsportking(center) inconversationwithRietertechnologistMr.Jensweidemann



ing Group’s most important business segment. A wide range of yarns are produced, from cotton, manmade fib-ers, raw white and dyed blends to various fancy yarns such as crochet and chenille yarns. Its first spinning mill was built in 1989 under the name of “Sportking India Ltd.”.

The group now operates five spinning installations with 1,50,000 spindles in and around Ludhiana, manu-facturing manmade fiber yarns and blends. Five more spinning mills with a total of 1,20,000 spindles for man-ufacturing cotton, polyester/cotton and blended yarns are being installed in Bathinda.

The group has a daily knitting capacity of 2,000 kg of fabric in various knitting constructions. It is vertically integrated and owns two dyeing plants for fiber and yarn with a capacity of 10 tonnes/day each. The making-up facilities in Ludhiana produce a wide range of apparel

for men, women and children. The product range in-cludes thermal underwear, T-shirts, pants, tracksuits, sweaters, shorts, leisurewear, jackets and other gar-ments. The company has its own design team and devel-opment center for creating new designs and products. It has branches throughout India and its full range of ap-parel is on offer in 60 outlets. The group has developed its vision further, and through the Sportking Textile En-gineering Institute it provides a forum for exchange of technical know-how in the fields of textiles and fashion.Investmentintechnologyandgrowth

Development of the Indian spinning industry, which currently meets 25 per cent of the global demand for yarn, and the growing domestic demand for yarn were the basis for the group’s decision to expand its spinning capacity by a further 120,000 spindles. Two facilities with 28,800 spindles each have already been installed,

Corporate news


and a further three are currently being set up. Rieter is proud to have the opportunity to install a complete spin-ning mill with Rieter machines for the third time.

The second installation with 28,800 spindles is equipped with Rieter’s latest VARIOline blowroom-line. The C 70 high-performance cards deliver carded slivers in the optimal, required quality with an output of up to 95 kg/h. Two Rieter combing lines with the new SB-D 11 single-head draw frames, the OMEG-Alap combing preparation machine and the highly pro-ductive E 66 combers complete the process.

Each machine supplies top-quality combed slivers with noil extraction rates of up to 17% at an output of up to 1,700 kg/h. Four RSB-D 22 double-head autoleveler draw frames featuring Rieter’s mill proven autolevelling system produce drafter slivers with very low CV values. The ring spinning mill is equipped with 22 G 32 ring spinning machines, each of which produces 206 g of Ne 30 cotton yarn per spindle and shift on 1,440 spindles.

As well as state-of-the-art machinery, the Sportking Group has a productive workforce and management

with a very high standard of technical know-how and leadership ability, who are able to structure processes and workflows in such a way that the maximum yield can be obtained from the available raw material with the Rieter machines.Apartnership–SportkingandRieter

“The world has suddenly become smaller, so any company wishing to grow has to think globally, since the competition is no longer limited to the domestic market,” says Raj Kumar Awasthi.

The group’s vision of boosting socio-economic growth through quality and adaptation to the current state-of-the-art offers Rieter the opportunity to co-oper-ate closely with the Sportking Group in order to achieve high quality in yarn manufacture. Sportking is one of those highly regarded customers in India which offers Rieter a platform for the use of its latest products and innovations.

(This article has been reproduced from the recent edition of Rieter’s customer magazine, LINK)

Corporate news

Grundfos offers effective pump solutions for textile processing

produCt news

The textile manufacturing process is highly water intensive. Grundfos provides end-to-end pump solutions based on more than 60 years of ex-perience and designed with special attention to ensure seamless opera-tions in the most critical processes. Across the world, the company pumps are being used for different industrial applications providing lower life cycle costs, high reliabil-ity and savings that benefit both us-ers and the environment.

Pump solutions that combine low

life cycle costs with reliability and efficiency are user & eco-friendly, and save energy. As the textile in-dustry expands, there is growing concern over the common global problem – water scarcity. There is ever-increasing demand for fresh water, but improper disposal of wastewater or poor wastewater management threatens the existing water sources. To address this haz-ardous situation, the Government and the State Pollution Board have enforced stringent rules and regula-

the Grundfos r&d team

collaborates with industry

experts to identify, design,

develop and test pumps

that cater to growing

industrial demand.

Mr.shankarRajaram,Head-sBu(Textile),andMr.Manu.s,Manager-Exportsales,(extremerightandleftrespectively),withcolleaguesatthecompanystallatDhakaTextileshow



tions on the industry to ensure effec-tive wastewater management.

Efforts would go into setting up expensive common effluent treat-ment plants (CETPs) and other measures to ensure that business functionality is not affected by the need to be environmentally sensi-tive. Grundfos produces pumps, mixers, flow makers and diffusers that are eco-sensitive and reliable, considerably helping customers save water.

Tirupur is one of the largest tex-tile manufacturing hubs in India. With rising business demand, there is growing concern over discharge of effluent that pollutes the water-bed, leading to the Pollution Con-trol Board setting stringent norms to check the menace. As a solutions provider, Grundfos supplies pumps, mixers, flow makers, diffusers and dosing systems for different indus-tries in Tirupur to help them in their endeavour to reduce environmental degradation.

The numerous processes in the textile industry invariably leave the effluent at the end of the cycle that needs to be handled efficiently. As the effluents are corrosive, acidic and are chemically different due

to the varying processes involved, Grundfos has developed and exe-cuted various projects with a proven submersible range of pumps. These pumps also come with unique fea-tures like energy retrieval consid-ering the efficiency loss due to in-creased clearances.Dyeingandfinishing

Dyeing and finishing is an impor-tant process that consumes the high-est amount of water. Grundfos has specially designed pumps that cater to the large water demands while re-maining conscious of the need to en-sure that every drop of water is put to its best use.

At one of the customer installa-tions in Tirupur, Grundfos has set up the Hydro 1000 system to take care of the fluctuating demand. This customer has 15 soft flow dyeing machines. Each machine has a tank to be filled for 20 cycles. In each cycle the tank has to be filled up thrice within the shortest possible time. The earlier system had a single pump with the throttle mechanism.

The new Grundfos pumps ensure ease and trouble-free operation and, most importantly, availability of spares and service on time. At an-other customer location in Banga-

lore, the company has installed the Hydro-2000 4 X CR 64-3 MF sys-tem in the main distribution line. This customer with two soft dyeing machines plans to add a few more. In a dyeing unit, the soft flow dye-ing machine requires smooth flow of water during fluctuating demand. Water needs to be filled in the dye-ing vessel in the shortest possible time. Grundfos installed a ‘fit & for-get’ technology to one of the criti-cal processes in the textile industry which is highly reliable and energy saving system to the customer.

At another customer installation in Tirupur, the company has pro-vided its digital dosing pump as replacement to the existing conven-tional dosing pump. Normally fab-ric processing includes bleaching / dyeing depending on the colour of the fabric. The customer earlier had imported bleaching machines with dosing pumps of solenoid type which called for mechanical adjust-ment of stroke length and frequency. This caused a lot of imprecision. The Grundfos system installed now is compact and is focused on preci-sion and trouble-free operation.

w

produCt news

leCtra announces fresh investments in india

Corporate news

In India since 1998, Lectra opened its own subsidiary based in Banga-lore in 2008. “India is a fast-devel-oping key market for Lectra, partic-ularly for apparel, automotive, wind energy and aerospace markets. Indi-an manufacturers have now reached a critical size and require local ex-pert support to optimize the benefits derived by using Lectra solutions”, said Daniel Harari, Lectra CEO.

“Considering all these require-ments in India, Lectra has decided to considerably reinforce its presence and make significant new invest-ments by doubling its Indian team from 12 to 24 people, opening two

more offices and an International Call Center in Bangalore, besides strengthening its sales and distribu-tion network and relationship with local partners. The expanding In-dian domestic market is contribut-ing to growth in the manufacturing segment, especially in the fashion and automotive industries where Lectra has developed unrivalled, worldwide, innovative and exten-sive knowledge and best practices with leading global brands and sup-pliers”, he added.

Said Laxmanasandra Jayaram (L.J.) Prashanth, Managing Direc-tor, Lectra India: The Indian manu-

new offices opened in delhi and tirupur

lectra, the world leader

in integrated technology

solutions dedicated to

industries using soft

materials – textiles,

leather, industrial fabrics

and composite materials

– has announced

significant investments

in india with the opening

of its two new offices

in delhi and tirupur, an

international call center in

bangalore and its move to

strengthen the sales and

distribution network in

the country.

Mr.DANIELHARARI,LectraCEO



facturing sector’s strength, especial-ly across fashion, automotive and wind energy industries, is the avail-ability of raw materials and skilled labor, growing domestic demand and the ability to manufacture a va-riety of products meeting both the domestic and export requirements. In recent years, due to the global economic situation, the manufactur-ers have been focusing on reducing the cost of production and improv-ing productivity to be competitive in the market.

Its customers who have deployed the company solutions benefit by increasing productivity, optimiz-ing their existing infrastructure, and reducing costs to maintain profit-ability and expand business even in difficult market situations, he added.

New offices opened The newly-opened Delhi office

will cover the North Indian States where many fashion companies and automotive units are located. The Tirupur office will cover the south-ern states of Tamil Nadu and Kerala. Tirupur, with its garment cluster and a significant presence at the lower end of the international hosiery and knitwear market, accounts for more than 50 per cent of cotton knitwear exports from India.

Lectra has appointed in these new offices a team of solution experts and field service engineers with rich industry experience to fully meet the needs of its customers. All other In-dian States will continue to be cov-ered by the existing office in Ban-galore.

The newly-opened international call center in Bangalore is dedicated to all the Indian customers. Staffed

with Lectra ex-perts, this center includes a dedi-cated team of six solution special-ists and a team of field service engineers. The center is con-nected with the five existing Lectra interna-tional call cent-ers in France ( B o r d e a u x -Cestas), North America (Atlanta), Spain (Madrid), Italy (Milan), and Asia-Pacific (Shanghai).

Lectra has also strengthened its sales and distribution network in In-dia and has reinforced its strategic partnerships with local partners by collaborating with three Indian sales partners, all having a very strong local presence in specific Indian re-gions: Magnum Technology Solu-tions, its historical partner, already working with Lectra for the States in North India; Imperial Group of Companies, appointed sales part-ner for Maharashtra and Gujarat; and Alpine Knits, appointed sales partner for Tamil Nadu and Kerala. Their role will be to help identify business opportunities within Lec-tra’s realm that will handle imple-mentation, training activities, sup-port to guarantee optimum quality under long-term relationship with the clients.

Lectra is the world leader in in-tegrated technology solutions that automate, streamline and accelerate product design, development and

manufacturing processes for indus-tries using soft materials. Lectra develops the most advanced special-ized software and cutting systems and provides associated services to a broad array of markets, including fashion (apparel, accessories, foot-wear), automotive (car seats and interiors, airbags), and furniture, as well as a wide variety of other mar-ket sectors, such as the aeronautical and marine industries, wind power, and personal protective equipment.

Magnum has over 15 years of experience in India covering an integrated range of CAD & CAM solutions from the world’s leading suppliers and a strong track record in both deploying and supporting them efficiently.

Alpine Knits India Pvt. Ltd., based in Tirupur, is one of the leading so-lution providers for garment mak-ing industries in south India, while Imperial Group is a market leader in providing “one-stop” solution in every aspect of apparel and textile manufacturing, from fiber to fash-ion. w

MR.L.J.PRAsHANTH,ManagingDirector,LectraIndia

Corporate news

demand growth in emerging markets is driving investment in nonwovens

industry update

Several nonwovens roll goods producers are building, or have re-cently built, new facilities and new lines with the aim of targeting grow-ing demand in markets in Asia, Australasia, the Middle East, North Africa, South America and Southern Africa.

In the Asia-Pacific region alone, demand for nonwoven fabrics is forecast to grow by 9.6 per cent per annum between 2010 and 2015, ac-cording to Freedonia Group. Fur-thermore, China will account for al-most half of the additional demand worldwide.

Avgol, an Israel-based spunbond

nonwovens producer which has facilities in Israel, China, North America and Russia, has added a second line at its facility in China and a third line is under construc-tion. When the line has been com-pleted, it will bring Avgol’s total production capacity in the country to 40,000 tons per annum.

First Quality Nonwovens, a pro-ducer of spunmelt nonwovens with two plants in Pennsylvania, USA, is building a new manufacturing facil-ity at Wuxi in China. Initially the plant will have two machines, the first of which is scheduled to start production this year.

rapid growth in demand

in emerging markets is

driving investment in

nonwovens, according

to a report in the latest

issue of technical textile

markets from the business

information company

textiles intelligence.

66 | The TexTile Magazine February

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