Thursday, March 31, 2011
Tuesday, March 29, 2011
TUF SUBSIDY
NEW DELHI: The Government today enhanced subsidy allocation for modernisation of the textiles industry to Rs 15,404 crore from earlier sanction of Rs 8,000 crore for the current Plan ending 2012.
The decision to increase the outlay and re-structure the Technology Upgradation Fund (TUF) was taken by the Cabinet Committee on Economic Affairs here.
Of the additional Rs 7,404 crore, Rs 1972 crore would be available for fresh sanctions while the remaining Rs 5,432 crore is meant for fulfilling the committed liabilities under the TUF scheme.
Under the re-structured scheme, 5 per cent interest subsidy and 10 per cent capital sops would be provided on brand new looms.
"The CCEA approval will enable immediate lifting of the pause button imposed by the Ministry of Textiles since June 29, 2010," an official said after the meeting.
The interest and capital subsidy would encourage investment in the industry worth Rs 47,000 crore, he said.
According to the mid-term appraisal of the TUF scheme conducted by rating agency CRISIL , because of its positive impact the programme should be continued in the XII (2012-17) Plan period as well.
However, it recommended that it should be re-structured in a manner that the benefits also go to processing units instead of the spinning segment which was the major beneficiary now.
The Indian textiles industry which contributes 14 per cent of the total manufacturing, has global brands like Nike , Reebok , Pepe Jeans, Armani and Versace to sourcing their merchandise from the country.
In the overall textile sector, India's share in the world market is 16.8 per cent and the country ranks only after China among the developing nations, a report by UN Industrial Development Organisation ( UNIDO )) said.
Rgds/saurabh
Thursday, March 24, 2011
High prices may cut spinning mills' margins by 2.5%
| | |||||||||||||||||
Rising cotton prices are expected to reduce operating margins of spinning companies by 2.5 per cent in 2010-11, Crisil research said in a report. Cotton prices have surged almost 80 per cent in the last one year and by 65 per cent between October and February as exporters had a deadline till February.
Cotton procurement cost for spinning mills is also expected to move up by 30-35 per cent. Textile manufacturers, however, say their margins are protected as they are in a position to pass on the increasing cost. “We have procured cotton at low prices and charge our customers according to the current raw material rate. This will, thus, not increase our procurement costs,” said CFO of a leading textile company. Cotton prices on domestic and international markets are expected to ease taking cues from a fall in global prices of the commodity. Cotton yarn prices may not move up drastically, the report said. “So far, strong demand growth has enabled spinning companies to pass on the rise in cotton prices to buyers. Cash accruals for players have, therefore, jumped by more than 65 per cent year-on-year in 2010-11. Spinners, however, will not be able to increase prices significantly in the coming months, as downstream fabric and garment companies would find it difficult to get similar increases from their consumers. This would affect profitability,” said Sridhar C, head, Crisil Reasearch. | |||||||||||||||||
Rgds/saurabh
Tuesday, March 22, 2011
FW: Domestic will revive back because - Reduction in assesment value for Branded garment.
News Flash
COAL MINISTER: COAL MINISTER SAYS COAL INDIA FY'12 PRICE HIKES TO DEPEND ON WAGES
FM rolls back 5% service tax on healthcare
Press Trust of India, March 22, 2011 (New Delhi)
Bowing to demand from all quarters, finance minister Pranab Mukherjee on Tuesday announced withdrawal of the proposed 5 per cent service tax on airconditioned hospitals with more than 25 beds and on diagonistic services.
He also provided some relief to readymade garment manufacturers by raising the abatement available for levy of taxes on retail price of some branded garments and textile made-ups.
"The purpose of the new levy (healthcare) was not merely to mobilise revenue, but to pave the way for introduction of the GST. However, I have decided to exempt the new levy in its entirety both in respect of services provided by hospitals as well as by way of diagnostic tests until GST comes into force", Mukherjee said while moving the Finance Bill in the Lok Sabha for consideration and passage.
The announcement was greeted with loud thumping of desks by members as the minister hoped that it will no more be called "misery tax".
Both these proposals, mooted by the minister as part of Budget for 2011-12 on February 28, had evoked sharp reaction from the interest groups.
During the general discussion on the Budget last week, almost all political parties wanted the finance minister to withdraw the healthcare service tax proposal, which was dubbed as "misery tax".
The garment traders had criticised the proposed 10 per cent excise duty on readymade garments saying it would hurt the small business.
"To address this concern, I propose to enhance the abatement of 40 per cent to 55 per cent on the retail sale price. With this relief, a unit will continue to be eligible for SSI exemption in 2011-12 even if it had a turnover based on retail sale price of Rs. 8.9 crore in the current year", the minister said.
Under the revised norms, 10 per cent excise would be levied on 45 per cent of the tariff value of retail price on branded readymade garments as against 60 per cent proposed in the original Budget proposal.
Mukherjee, however, retained his proposal to extend 18.5 per cent Minimum Alternate Tax (MAT) on SEZ developers and units. With regard to the proposal to reduce basic customs duty on raw silk from 35 per cent to 5 per cent, the minister said it was aimed at augmenting the supply to weavers in both handloom and the powerloom sector.
Pointing out that he had received divergent opinions on the tax initiatives for the sector, he said, "I would like to assure the House and respond, if required, to mitigate any adverse impact on the domestic sericulture sector."
Referring to the financial sector reforms, the minister said, the government proposes to pursue three more financial sector legislations --- PFRDA Bill, the Bill on Factoring and Assignment and the State Bank of India Subsidiary Bank Law Amendment Bill --- in the coming days.
Mukherjee had earlier in the day tabled, the Banking Law Amendment Bill 2011 and the Constitutional Amendment Bill for introduction of Goods and Services tax (GST). On the crisis emanating from political uncertainties in Middle East and Libya, Mukherjee said the country can withstand the impact of such crisis.
"We hope for an early and peaceful resolution of the disturbing developments in the Middle East and in Libya. I am prepared for uncertainties in the globalised world," he said.
Read more at: http://profit.ndtv.com/news/show/fm-rolls-back-5-service-tax-on-healthcare-145747?cp
Monday, March 21, 2011
Alok to generate higher ROC in future
| Alok to generate higher ROC in future |
| March 21, 2011 (India) |
|
|
|
|
Rgds/saurabh
Thursday, March 17, 2011
GOVT MAY SANCTION 15 K FOR MODERNISING TEXTILES
S K JINDAL (SR.G .M)
GINNI INTERNATIONAL LIMITED
NEEMRANA(RAJ)
Govt planning to set up yarn bank
| Govt planning to set up yarn bank |
| |
| BS Reporter / Mumbai March 17, 2011, 0:32 IST |
| |
The government is planning to set up a yarn bank in all powerloom centres and clusters, so that weavers could get their raw materials in enough quantity and at a reasonable price.
This would also help weavers to plan their production program in advance. Each yarn bank would cost around Rs 2 crore
The government would contribute 50 per cent as seed money and remaining 50 per cent would be borne by respective powerloom clusters, A B Joshi, textile commissioner announced at the inauguration of Texpo 2011.
As cotton prices have doubled since last August and petrochemicals prices are also rising, all yarn varieties have become costlier and sharp fluctuation in prices has prevented loom owners from planning their production. Setting up of a yarn bank, which is still in primitive stage, is expected to provide yarn to buyers at a stable price.
Yarn producers will sell yarn to the bank and buyers can approach the bank when they need it. A nodal agency could be appointed for managing the bank, said a person familiar with the development. The agency will have to make arrangement with warehouses to store the yarn sold by producers. The bank is expected to safeguard the interest of yarn manufacturers and buyers in case of sharp fall in prices.
Bank would work to bring balance between interests of sellers and users of yarn.
Powerloom contributes 80 per cent to the total production of fabric in
“Currently the Indian powerloom sector is in competition with
S K JINDAL (SR.G .M)
GINNI INTERNATIONAL LIMITED
NEEMRANA(RAJ)
India - With rising yarn costs, textile mills opt for daily pricing:
16 Mar, 2011 - With no respite at all from the rising prices of yarn, both cotton and synthetic, mills are refusing to allow more than a day for fabric buyers to confirm orders. Cotton prices have almost doubled in the past six months, while those of synthetic yarn have risen 30-40 per cent in that time. With the government allowing export of another 50 million kg of cotton yarn, the present level of prices arent expected to soften for at least a couple of more quarters. "Due to constant fluctuation in raw material prices, we give our clients only 24 hours to confirm their orders. Earlier, clients could take their own time to do so,and" said Manish Mandhana, joint managing director, Mandhana Industries. Since demand is high, mills are trying to pass on as much of the cost burden as they can. Said Sunil Khandelwal, chief financial officer of Alok Industries: "We are passing on (all) the raw material price rise to the consumer.and" Its retail subsidiary intends to pass on the entire 10 per cent excise duty on branded garments proposed in this budget to its consumers. Added Arun Agarwal, director of Suryajyoti Spilling Mills: "We are passing on the whole cost to the consumer and not holding it back, as it will affect our margins.and" Arvind Mills is also planning to raise their rates by 10-15 per cent to pass on the input costs, said Sanjay S Lalbhai, chairman. He noted this was possible since demand for both fabric and garments were strong. "At present, mills are in a position to pass on the whole increase in prices. It wont remain so beyond a point,and" said another mill owner. Some mills have switched to synthetic yarn from cotton, as the former has risen less. Market preference has also shifted: Europe, in particular, has seen a drastic shift from cotton yarn to synthetics, which has also caused an increase in demand in synthetic textiles. "It is easier to pass on the high raw material costs to exporters,
Rgds/saurabh
Tuesday, March 15, 2011
FW: News clipping
Sharad Jaipuria
Chairman & Managing Director
Ginni International Ltd
New Delhi
+919811083203
From: S Kumar [mailto:s.kumar@ginniint.com]
Sent: Wednesday, March 16, 2011 11:21 AM
To: sharad.jaipuria@ginniint.com
Subject: News clipping
Kindly see the attached file.
Monday, March 14, 2011
FW: News clipping
Sharad Jaipuria
Chairman & Managing Director
Ginni International Ltd
New Delhi
+919811083203
From: S Kumar [mailto:s.kumar@ginniint.com]
Sent: Monday, March 14, 2011 11:51 AM
To: sharad.jaipuria@ginniint.com
Subject: News clipping
Kindly see the attached file.
Tuesday, March 8, 2011
FW: News clipping
Sharad Jaipuria
Chairman & Managing Director
Ginni International Ltd
New Delhi
+919811083203
Saturday, March 5, 2011
Interview of Sanjay Jain from TT textiles
Excise duty to cut FY11 turnover: TT Textiles
Published on Fri, Mar 04, 2011 at 16:57 | Updated at Fri, Mar 04, 2011 at 17:20 | Source : CNBC-TV18
|
ALSO READ · See previous management interviews · See what other Experts & Brokerages are saying about TT TT
|
In an exclusive interview with CNBC-TV18’s Reema Tendulkar and Ekta Batra, Sanjay Kumar Jain, joint managing director of TT Textiles says that the company’s FY11 turnover would be hit by the excise duty imposed this budget. “Since government has just imposed the excise duty on our net-ware business, which is under a lot of pressure due to inflation from cotton yarn and raw cotton, our turnover this year would be a bit low,” he says.
The company hopes to end the year with a turnover of Rs 400 crore to Rs 500 crore. He also sees the next year turnover to be about Rs 700 crore.
Below is a verbatim transcript of Sanjay Kumar Jain’s interview with CNBC-TV18’s Reema Tendulkar and Ekta Batra. Also watch the accompanying video.
Q: Your board has given the approval selling the oil mills. Have you done any rough calculations of how much that would fetch in terms of rupees?
A: I can’t disclose details. We are under negotiations with a couple of parties separately for both of the assets. So, we should in a month to be able to give you the details.
Q: Are you all looking to sell the whole thing?
A: We have a ginning factory and oil factory in Gondal, near Rajkot in Gujarat that we plan to sell in full. We have a ginning factory in Rajula that is near Pipavav port, which is adjacent to our spinning mill. We also plan to dispose it. We have separate negotiations for both of them and hopefully, soon we will be making our final announcement.
Q: Can you give us a reason why you are divesting your updates and possible utilizations of the funds?
A: The two main reasons for going for this divesture – cotton and oil business has become extremely volatile due to its commodity nature, and it is something which we don’t find sort of speculative in nature of the business. We don’t find it in tune with our other businesses which are the reasons for the divesture. Secondly, we want to approve down our debt equity ratio and invest in projects on the value-added segment like yarn, fabric and net-ware where we are focusing the company at present. It would also be a de-risking exercise.
Q: Are you making an exit from the cotton and oil trading business? What exactly is your debt figure currently and what could it possibly come down to? What are you going to be left with post this exit?
A: It is a small section of our asset size. It doesn’t constitute more than 10% of our assets and this will bring down a debt equity ratio of about 2.5 the long-term debt equity ratio to about 2. Secondly, we will be left with all our main businesses that is cotton yarn, netted fabric and net-ware that constitutes 80% to 90% of our turnover and also our assets size.
Q: Could you tell us the exact figure of your debt?
A: The long-term debt at the end of 31st March, 2011 will be about Rs 120 crore.
Q: What you are hoping to end the year with?
A: We hope to end the year somewhere between Rs 400 crore to Rs 500 crore. Next year we are looking to end the year with a target of about Rs 700 crore. Unfortunately, because of government policies, this year our turnover would be a bit low. However, it will be made up in April 2011 since government has just imposed the excise duty on our net-ware business that is already under a lot of pressure due to inflation from cotton yarn and raw cotton. Hence, we are hoping and fighting against this move.
Q: Have you asked the government at all to actually roll this excise duty back?
A: Yes, we have very strongly asked the government to roll out the excise duty. The industry is on a one-day token protest band and closure today. We are having big rallies all across the country and have already met the finance minister
Rgds/saurabh
Thursday, March 3, 2011
FW: NYF/ COTLOOK INDICES/ICC AS ON 03RD MARCH 2011
Sharad Jaipuria
Chairman & Managing Director
Ginni International Ltd
New Delhi
+919811083203
From: GALIAKOTWALA_MB [mailto:galiakot@bom3.vsnl.net.in]
Sent: Friday, March 04, 2011 9:18 AM
To: galiakot@bom3.vsnl.net.in
Subject: REF: NYF/ COTLOOK INDICES/ICC AS ON 03RD MARCH 2011
C. A. GALIAKOTWALA & CO. PVT. LTD.
66, MAKER CHAMBERS III, NARIMAN POINT, MUMBAI 400 021.
TEL : 91- 22 - 2284 37 58 FAX : 91- 22 – 2204 8801
REGD. OFFICE : 125, NAGINDAS MASTER RD., FORT, MUMBAI 400 001.)
TO : ALL CLIENTS DATE : 04 March 2011
ATTN : COTTON PURCHASE DEPARTMENT REF NO. : PRI/100110 O
PAGES : 1 + FAX NO. :
REF: NYF/ COTLOOK INDICES/ICC AS ON 03RD MARCH 2011
NYF
COTLOOK .
| | U. S. CENTS PER LB C/ F F/E PORTS | CHANGE | LAST MONTH | CHANGE | LAST -YEAR | CHANGE |
COTLOOK A INDEX (2010/11) | 231.90 | +6.40 | 205.05 | +26.85 | - | - |
ICC
MONTH | SETTLE | CHANGE |
| | | |
(*THE FIGURES IN BRACKETS ARE ON PER CANDY BASIS)
BEST REGARDS.
Wednesday, March 2, 2011
Excise duty on automatic looms a disincentive: industry
| Excise duty on automatic looms a disincentive: industry |
| BS Reporter / Mumbai/ Ahmedabad March 03, 2011, 0:31 IST |
New entrants to the 2.3 million units strong powerloom industry in might find a disincentive in the imposition of five per cent excise duty on automatic looms and projectile looms, say industry experts. According to Confederation of Indian Textile Industry (CITI), the move would mean additional duty burden for machinery industry, fabric manufacturers including decentralised powerlooms
"Imposition of 5 per cent excise duty on automatic looms and projectile looms would add an avoidable duty burden on the machinery industry which will impact fabric manufacturers, including the decentralised powerlooms," says Shishir Jaipuria, chairman, CITI, talking about the impact of the excise duty on the textile machinery.
| ||||||||
Of the 2.3 million units in the industry, close to two lakh are automatic looms while rest are semi-automatic or ordinary looms. "Textile machinery for powerloom sector are available in the range of Rs 5 lakh to Rs 20 lakh. But the additional excise duty will mean costlier machinery. Many new players will find it tough to enter the sector at such high costs. We will be making our representation to the Finance Ministry to reconsider the proposal," says Bharat Chhajer, chairman, Powerloom Development and Export Promotion Council (PDEXCIL).
However, the excise duty will not only mean a disincentive for new players in the powerloom industry but also weaken fabric production in the country. "India is still weak in fabric production because about 22 per cent of the yarn is exported. Instead of strengthening the fabric value chain in textiles by encouraging the powerloom industry, such additional burden discourage and weaken the sector," says DK Nair, secretary general at CITI.
In Gujarat alone, cotton and synthetic powerlooms combined, there are currently over six lakh units. Of these around 50,000 cotton powerlooms are in Ahmedabad and other North Gujarat regions. Also, on its part, PDEXCIL expects to see an addition of another 50,000 powerlooms in Gujarat.The textile industry body CITI has the reduction of customs duty from 7.5 per cent to 5 per cent on certain textile intermediates and inputs for technical textiles will be of some help to the nascent and potential technical textiles.
Subscribe to:
Posts (Atom)