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CHAPTER 1

INTRODUCTION

The textiles exports basket consists of Readymade garments, cotton textiles,

textiles made from man-made fibre, wool and woolen goods, silk, handicrafts,

coir and jute.

Textiles and clothing represent the most important sectors of international

trade as it accounts for 8 percent of world exports. For developing countries

it is much more as it contributes significantly to their export basket.

The skill of weaving with deft fingers, drawing patterns and creating designs,

is an art, which has been handed down through generations from father to

son, from time immemorial. These finest gossamer fabrics woven from yarns

of superior finish are now being manufactured more and more on power

looms.

The emergence of powerloom has transformed an art into a modern industry,

producing around 19,000 million meters of fabrics annually and employing

over 7 million of workers. The combination of traditional art and contemporary

modern designs has given a unique character to the Indian powerloom textiles.

The modernisation process undertaken by the powerloom industry has

widened the scope of products such as grey, printed and dyed fabrics and

cotton made-ups in a variety of sophisticated finishes and in a wide range of

widths and sizes. Besides, the industry is now in a position to offer fabrics not

only of cottons but also of rich blends of cotton, synthetics and other fibers.

The process of economic liberalisation has enabled the industry to become

globally competitive, not only in terms of price, but also of quality. It is

therefore no surprise that powerloom textiles worth more than Rs. 44,000

million have been exported to all the four corners of the world, covering not

only the developed but also developing countries. U.S.A., France, Germany,

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Bangladesh, Hong Kong, Italy, etc., have been our major markets, indicating

the directional pattern of exports.

The discerning buyers of these countries prefer Indian textiles, as these

meet their requirements, whether it be in texture, finish, weave, variety, quality,

price, width and size, count and construction, weight, specifications. The

ranges of products offered are magnificent, right from greys to finished

fabrics and to made-ups.

The abolition of the quota regime by 31-12-04 has opened up vast

opportunities for powerloom sector to leap frog in exports.

As on Jun 09, the Indian textile industry is US $ 52 billion (US $ 21 billion

exports; US $31 billion domestic market).

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CHAPTER 2

IMPORTANCE OF POWERLOOM AND MILLMADE TEXTILES

MILLMADE TEXTILES :

The Indian Textile Industry is one of the largest segments of Indian

Economy accounting for over one fifth of the industrial production. The winds

of change have transformed a traditional art to a modern industry, employing

state of the art technology and providing employment to around 15 million

people.

This combination of traditional art and contemporary design has

produced a variety of yarn, fabric, home textiles and other textile products

sought after the world over, with over 9 million hectares under cotton cultivation

and an annual crop of around 3000 million kgs.

India is amongst the world’s largest reservoirs of this popular fibre. In

addition the 80 odd cotton varieties of different descriptions being grown in

India, enables the industry’s produce cover almost every conceivable count

and construction of fabrics in a width of choice.

The process of economic liberalisation begun in the last decade has

seen the industry become globally competitive, not only in terms of price,

but also quality. Modernisation has not been restricted to the installation of

sophisticated processing machinery, wide width looms, autoconers, electronic

clearers, splicers, etc. but also to the adaptation of quality systems conforming

to ISO 9000 standards.

The recent euphoria created in the European markets on eco-friendly

textiles has sent the Indian industry into a flurry of activity to adapt itself to

market requirements. With over 1300 spinning units, over 275 composite

mills and around 1.49 million registered looms, the Indian Cotton Textile

Industry is a force to reckon with.

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IMPORTANCE OF POWERLOOM

Fabrics of yarn counts 6s and above in various widths as well as in

wider widths over 100" are offered by the manufacturers. The fabrics in various

weaves such as plain, drill, twill, stain, oxford, etc., are tendered in various

weight ranges. Although bulk of the fabrics offered is in grey state, the

manufacturers also supply other fabrics such as finished, printed, bleached

& dyed. Besides high value fabrics manufactured on auto looms are also

offered exclusively for the up market. Made up items for various end uses

are available to meet the buyers’ requirements. The major items of export

are terry towels, bed sheets, pillowcases, etc. Considerable attention is paid

to the quality of the products and hence these are comparable to the products

offered by other suppliers.

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CHAPTER 3

PRODUCT CATALOGUE

Product GroupingTextile Category Brief Description

Apparel 331 Knit Gloves

Apparel 350 Robes & Dressing Gowns

Apparel 359 Headwear

Apparel 359 Knit Neckwear

Apparel 359 Martial Arts Uniforms

Apparel 359 Shawls & Scarves

Apparel 359 Pantyhose & Tights

Apparel 431 Gloves

Apparel 459 Body Supporting Garments




Apparel 631 Knit Gloves

Apparel 649 Bra’s & Body Supporting Garments





Apparel 831 Gloves

Apparel 833 Coats and Jackets



Apparel 836 Dresses

Apparel 838 Shirts and Blouses

Apparel 840 Shirts and Blouses

Apparel 842 Skirts

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Apparel 843 Suits

Apparel 844 Suits

Apparel 847 Trousers


Apparel 851 Nightwear

Apparel 858 Neckwear



Apparel 859 Bra’s & Body Supporting Garments

Fabric 222 Knit Fabric

Fabric 223 Non-woven Fabric

Fabric 621 Impression Fabric

Fabric 622 Glass Fibre Fabric

Fabric 810 Silk Blend and Vegetable-fibre Fabric

Made-ups 369 Luggage

Made-ups 369 Bar-mops

Made-ups 369 Except made-ups included in Stage 2

and pillow covers, knitted table linen,

shop towels and dishcloths

Made-ups 464 Blankets


and bed linen


and bed linen

Made-ups 669 Bags

Made-ups 669 Labels, sacks, tarpaulins, awnings,

tents, cords, laces and needlecraft

sets


Made-ups 670 Flatgoods, handbags


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Yarn 600 Textured Filament Yarn

Yarn 606 Non-textured Filament Yarn

Yarn 607 Staple Fibre Yarn

Yarn 800 Silk Blend and Vegetable-fibre Yarn

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CHAPTER 4

TEXTILE POLICY

PREAMBLE

Perceiving the role of the Textile Industry in providing one of the most

basic needs of people and the importance of its sustained growth for improving

quality of life;

Recognising its unique position as a self-reliant industry, from the

production of raw materials to the delivery of finished products, with substantial

value-addition at each stage of processing; and its major contribution to the

country’s economy;

Realising its vast potential for creation of employment opportunities in

the agricultural, industrial, organised and decentralised sectors & rural and

urban areas, particularly for women and the disadvantaged;

Acknowledging the tremendous impetus provided by the Textile Policy

of 1985 to the economy, resulting over these years in compounded annual

growth rates of 7.13% in cloth production, 3.6 % in the per capita availability

of fabrics; and 13.32% in the export of textiles; raising the share of textiles to

13% of value added domestic manufacturing of the country; and to one third

of the export earnings of the country,

Taking note of the new challenges and opportunities presented by the

changing global environment, particularly the initiation of the process of gradual

phasing out of quantitative restrictions on imports and the lowering of tariff

levels for an integration of the world textile and clothing markets by end 2004,

and the need for a focussed approach to maximizing opportunities and

strengths inherent in the situation;

Having studied the issues and problems facing the sector, the views

of a wide range of stakeholders, and the recommendations of the Expert

Committee set up for this purpose;

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Deciding to redefine the goals and objectives, focus on thrust areas

and sharpen strategy in tune with the times, the National Textile Policy -

2000 is enunciated as follows:

VISION Endowed as the Indian Textile Industry is with multifaceted

advantages, it shall be the policy of the Government to develop a strong and

vibrant industry that can produce cloth of good quality at acceptable prices to

meet the growing needs of the people; Increasingly contribute to the provision

of sustainable employment and the economic growth of the nation; and

compete with confidence for an increasing share of the global market.

OBJECTIVES: The objectives of the policy are to

Facilitate the Textile Industry to attain and sustain a pre-eminent global

standing in the manufacture and export of clothing;

Equip the Industry to withstand pressures of import penetration and

maintain a dominant presence in the domestic market;

Liberalise controls and regulations so that the different segments of

the textile industry are enabled to perform in a greater competitive environment;

Enable the industry to build world class state-of-the-art manufacturing

capabilities in conformity with environmental standards, and for this purpose

to encourage both Foreign Direct Investment as well as research and

development in the sector;

Develop a strong multi-fibre base with thrust of product upgradation

and diversification;

Sustain and strengthen the traditional knowledge, skills and capabilities

of our weavers and craftspeople;

Enrich human resource skills and capabilities, with special emphasis

on those working in the decentralised sectors of the Industry; and for this

purpose to revitalise the Institutional structure;

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Expand productive employment by enabling the growth of the industry,

with particular effort directed to enhancing the benefits to the north east region;

Make Information Technology (IT), an integral part of the entire value

chain of textile production and thereby facilitate the industry to achieve

international standards in terms of quality, design and marketing and;

Involve and ensure the active co-operation and partnership of the State

Governments, Financial Institutions, Entrepreneurs, Farmers and Non-

Governmental Organisations in the fulfilment of these objectives.

THRUST AREAS In furtherance of the objectives, the strategic thrust will be

on:

Technological up gradation

Enhancement of Productivity

Quality Consciousness

Strengthening of the raw material base

Product Diversification

Increase in exports and innovative marketing strategies

Financing arrangements

Maximising employment opportunities

Integrated Human Resource Development

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CHAPTER 5

TYPES OF TEXTILES

COTTON FABRICS

India is synonymous with cotton. We were weaving cotton before the

rest of the world was even growing it. Ethnic Indian motifs and designs, that

are today the toast of Paris and Milan, hark back to centuries of tradition.

This rich and unrivalled heritage and craft foundation today co-exists

harmoniously with the modern new India, giving Indian textiles the dual

advantage of tradition and technology.

Today, India’s focus is on modernisation in every industry in every

sphere. The Indian cotton textile industry too is in fast forward mode. Plenty

of rapier, airjet, waterjet, automatic shuttle and shuttleless looms of wide

width have been installed; as have sophisticated knitting machines and state-

of-the-art processing machinery enabling the industry to offer grey, bleached,

mercerized, dyed, yarn dyed and printed fabrics.

India has over 9 million hectares under cotton cultivation an annual

crop of about 2720 million kg, a cotton textile industry that encompasses

1543 spinning units, more than 281 composite mills, and 1.72 million

registered looms. Simply put, the textile industry is the backbone of India’s

economy. Textile in India has been a pioneer industry for almost 150 years.

This has created a formidable technological base, fed by a vast reservoir of

highly competent, skilled, trained, managerial and technical personnel.

From preparatory to weaving, knitting, dyeing, processing or finishing

Indian entrepreneurs endeavour to adopt the most sophisticated and world-

class technology at each stage of fabric manufacturing. Greys of every

grade, exported in the form of sheeting, ducks, twills, drills, canvas, poplin,

chambrays etc. Greys accounts for almost 40% of the exports. (1.13 million

square metres worth US $ 325 million), in a range of widths (35" to 130")

and weights (less than 100 gsm to over 200 gsm).

A variety of Processed Fabrics : Technological upgradation has

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transformed this sector. Processed fabrics are available as bleached, printed,

piece dyed, yarn dyed, embroidery and knitted fabrics in a wide range (less

than 100 gsm to over 200 gsm). Last year 60% of Indian cotton fabrics

were exported in the processed form. 390 million sq. meters of printed

fabric (worth US $ 187 million), 141 million sq. meters of piece dyed fabric

(worth US $ 138 million), and 192 million sq. meters of yarn dyed fabric

(worth US $ 188 million) were exported to countries like USA, UK, Italy,

Germany and Hong Kong. ….

Fabrics in every finish: India exports fabrics in a wide range of finishes

(from simple to sophisticated), in varying widths (30" to 118"), and designs

(enhanced by a potent combination of traditional art and contemporary

sensibility). In the form of shirting, poplin, dress materials, jacquard fabric,

satins, voiles ….

Denims in every hue : Modernisation has helped India emerge as a global

player in denim with exports that included popular denim weaves like

chambray, jean weave, twill weave etc, ranging from light weight (4.6 oz/sq.

yd.) to heavier denims (14.5oz/sq.yd.). In colours like indigo dyed sulphur

dyed or dyed in different processed forms like double pre-shrunk, brushed,

acid washed, stone washed and printed.

Knitted Fabrics : India exports a variety of knitted fabrics - plain, pique,

fleece, terry, interlock, ribs, blends etc., as grey and processed, in tubular

and regular form, worth US $ 63 million (Total Quantity : 96 million sq. meters).

Industrial Fabrics : India has an increasing presence in the rapidly expanding

world trade of technical textiles. India has emerged as a newfound source

for the supply of interlining, geo textiles, non -woven and industrial fabrics

with specific applications in spheres like filtration, clothing, protection and

packaging industries.

India offers sourcing solutions for cotton fabrics for every kind of need,

including, small lot supplies. So whatever your budget, and however large,

or small your requirement, you know where to source it from. India. Today

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100% Export Oriented Units cater specifically to the textile export segment,

ensuring ‘On-Time’ delivery.

The textile industry occupies a position of prime national importance

accounting for over one third of India’s total exports. Textiles have the

distinction of being the highest foreign exchange earner for the country.

India exported around 2 billion sq. meters of cotton fabrics valued at about

US $ 1094 million in the year 2000. Cotton fabrics constitute about 32% of

India’s export of total cotton textiles valued at US $ 3646 million. No wonder

that Indian cotton fabrics find favours with designers and garment converters

in 185 countries across five continents.

The fabrics coming in purview of mill made textiles is as given below

for information and reference

Bedticking Grey

Buckram Interlining

Calico Jacquard

Cambrics Knitted Fabric

Canvas Poplin

Chintz Sateen

Damask Sheetings

Dobby Cloth Shirtings

Drills Terry Fabrics

Furnishing Twills

Gauze Voiles

Textiles exports 03-04 US $ 11970 mln (Inc. 8 percent)

Value addition in fabrics and yarns dominated the export product

basket.

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Indian Cotton Made-ups.

India is one of the world’s largest producers of raw cotton (2720 million

kg annually). India also has the largest acreage under cotton cultivation.

This has provided the labour intensive made-ups industry with one of

the world’s most abundant supplies of fibre, yarns and fabrics (furnishings,

sheetings, canvases, drills, chintz, jacquard, satin, dobby cloth et at).

With a collection of made-ups that range from the simple to the

exquisite, from the basic to the exclusive. Bed linen, kitchen and table linen

that are a feast for the eyes. Home furnishings that are at home in apartments

as well as mansions.

The threads of India’s cotton industry go back to many centuries. India

was using cotton before the rest of the world was even growing it. This

industry is a melange of the ancient and the modern. Highly creative craftsmen

with innate skills in embroidery, lace work, and quilting, have greatly benefited

from the installation of state-of-the-art wide width weaving and printing

facilities.

With abundant growth of raw cotton, and state-of-the-art facilities, the

cotton fabric exports can now be bettered. The good news is that India can

now cater to any demand from any part of the world.

Today, the Indian cotton industry is a force to reckon with,

Modernization, the IT boom, growing foreign investments. The march

towards modernization, India is on the cusp of a revolution. The Indian cotton

textile industry isn’t lagging behind either. One of the most vibrant segments

of the new look dynamic Indian cotton textile industry, is cotton made-ups.

Ultra modern plants for continuous dyeing, bleaching, and printing have

accelerated India’s emergence as a global major in all kinds of made-ups.

Including printed bed-linen, bath towels and soft touch towels. Of course,

this modernization has not been restricted to the installation of sophisticated

machinery alone, but also to the adaptation of quality systems conforming to

ISO 9000 standards.

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India manufactures and exports a wide variety of made-ups, which are

at home in many a home and spruce up many an office in several parts of

the world. These made-ups range from the very simple to the really exquisite

and include wide variety of bed, table, kitchen, toilet and other home

furnishing items.

MAJOR MADE-UPS EXPORTED

Bed Linen Durries

Bags Handkerchiefs

Blankets Laces

Curtains Sacks

Towels Printed Khangas

Napkins Tarpaulins

Pillowcases Non Terry Towels

Shawls & Scarves Duster Cloth

Cushion Covers Table Covers

The major markets for cotton made-ups are USA, EU, Japan, etc.

This gives ample testimony to the ever increasing popularity of Indian cotton

made-ups the world over and reveals the fact that the Indian cotton textiles

industry has adapted itself to meet the ever changing needs of the world

market.

Indian made-ups have made the world sit up and take notice. Fromhigh-fashion jacquards to high-performance feather-proof shell, fromsinglets to king size bed sheets and sheeting’s in a variety of counts andconstructions. India offers comprehensive sourcing solutions for all kinds ofmade-ups both woven and knitted, for aesthetic and industrial purposes.

Indian cotton made-ups have cornered a fair share of glory, in everycorner of the world from USA to Australia, from exclusive department storesto mega-malls. We’ve given Interior designers the world over plenty ofreasons to celebrate and plenty of choice to their specifications and acts asa catalyst between importers and the Indian cotton industry.

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INDIAN COTTON YARNS

INDIA PRODUCES 2720 MILLION KGS. OF COTTON ANNUALLY.India is one of the world’s premier producers of raw cotton with the world’slargest acreage under cotton cultivation (9 million hectares) and with a widerange of cotton staple length, (everything from short staple to extra longstaple). This enables production of almost every kind of yarn and has madeIndia the world’s largest exporters of cotton yarn, 25% OF THE WORLD’SCOTTON YARN.

The Indian Cotton Industry straddles 1543 spinning units, over 281composite mills & 1.72 million registered looms. The installed capacityincludes 36.37 million spindles and about 434,000 rotors. The abundantsupply of local cotton, coupled with the liberalised import of raw cottonenables us to produce yarn to match any specification and count withoutcompromising on quality and at a competitive price too.

India was spinning and weaving cotton before the rest of the world,was even growing it. But today India’s hallmark isn’t tradition, butmodernisation. Everywhere you look, you find a vibrant new India. The ITboom, the burgeoning automobiles sector, the liberalised economy, India isin the midst of a revolution. And this new resurgent mood has rubbed off onthe Indian Cotton Industry too. Over 40% of India’s spindleage capacity isless than a decade old, making it one of the world’s most modern installationsfor yarn manufacturing and making India one of the most contemporaryspinners of cotton yarns.

The installation of state-of-the-art machinery, including electronic cleaners,

auto slavers, splicers, two-for-one twisters, auto-coners, compact machines

has given a big fillip to the Indian cotton industry. This coupled with systems

that meet ISO 9000 standards has made Indian cotton yarn by far the world’s

most preferred yarn. Simply put, India’s great textile tradition has been

transformed by technology, enabling us to meet the diverse needs of

worldwide importers speedily, efficiently, and cost-effectively.

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We have a higher market share in the finer counts between 40s and 160s.

Weavers and knitters the world over look to India for cotton, cotton blended,

grey, bleached, dyed, melange, mercerised, twisted, stretch and coated

yarns, yarns for high value additions, those used for high fashion effects,

specialised yarns for industrial fabrics, and for enhanced levels of

performance on machines, yarn used in home fabrics, apparel, and every

other type of textile requirement. When it comes to yarn India can meet

every order, be it large or small, regular or casual, premium or economy,

fashion or basic.

As for our quality, it has satisfied the most discerning buyers from Hong

Kong, Japan, Europe, Taiwan, Korea, Mauritius, Russia and 180 countries

around the globe. Our world-class testing laboratories enable yarn

manufacturers to meet buyers’ specifications, however stringent they may

be. Count on Indian yarn for every possible count, from the coarsest to the

finest.

Home Textiles

After dismantling of quotas, home textiles - bed, bath and kitchen linen,

have increased in exports from Apr 05.

Export of Cotton yarn:

India is the second largest producer of cotton yarn in the world. Producing

2200 million kgs. per year comprising of OE/Ring Spun/Compacted cotton

yarn in addition to 842 million kgs. of blended/spun yarn to meet the need of

knitting and weaving industries worldwide.

India has assiduously built up expertise in the export of fine, superfine

combed cotton yarn. At present, India’s share of such yarn is 50 percent

and we are expected to grow faster.

MAJOR YARNS EXPORTED Counts from the coarsest to the finest;

Grey Yarns, Bleached Yarns, Dyed Yarns, Fancy Yarns, Melange Yarns,

Industrial Yarns, Sewing Thread, etc. Yarns exported suitable for: Weaving,

Knitting, Braiding, Plaiting, etc. Yarns are exported in the form of Singed/

Gassed, Mercerised, Single, Plies, Carded, Combed, Compact Spun, etc.

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There is adequate demand for combed yarn and finer counts of cotton yarn

( 30s and above) specialised polyester / viscose yarn and finer fabrics in

China. We should strengthen contacts with global buying houses.

Germany has branched out into new areas like technical textiles coveringareas of smart clothing, Healthcare products, Protective clothing, etc.

India should also make textiles as a functional product based on hightechnology being developed across the globe instead of conventional wear.

Technology upgradation is the prime need in post quota trade era. We haveto face pressures from the futuristic trade regime.

Cotton yarn:The Asian nations of China, Bangladesh and Korea are expected to accountfor over 85 percent of this growth. Since China will focus on exporting fabricsand garments, India is expected to become the largest market by 2010,aiming to meet Chinese demands of US $ 3.5 bln per annum. This is basedon Texprocil - McKinsey study.

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CHAPTER 6

EXPORT STATISTICS

Export of raw cotton , not carded or combed covered by ITC HS Code

‘520100’, except ITC HS Code ‘52010020’ has been made eligible to

VKGUY benefit.

Exports of yarn during Apr-Dec 2010 was $ bln 4 (57% growth)Manmade fibres exports during Apr-Dec 2010 was $ bln 2.9 (11% growth).

Textiles Exports - Jan - Jun 08 was US $ 82 billion

Cotton Exports as on Jan 08, makes India a major supplier to the world.

The setting up of WTO in 1995 marks the beginning of a new era in global

trade as member countries committed themselves to enforce the rule of

multilateral trading system apart from entering into reciprocal and mutually

advantageous arrangements for reduction of tariff and other non tariff barriers.

Their commitments have a significant bearing on global trade especially in

textiles and clothing.

India has offered tariff reduction and finding in respect of fibres, yarn, fabrics

and apparel in pursuance of its multilateral commitments. Most of the textile

items have been brought under OGL and tariff rates have also been found

favourable.

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CHAPTER 7

MARKETING

Marketing in case of powerloom and millmade textiles is of utmost importance

in the event of what can be termed as ‘ferocious’ competition between

developing countries including Pakistan, Bangladesh, Sri Lanka, China, and

Hong Kong, which are keen competitors to the Indian exports.

The export of powerloom and millmade textiles from India fails to attract

value addition i.e. the goods exported from here are repacked and relabelled

and sold at an enhanced value while the returns that an Indian exporter gets

is low compared to the margin at which it is sold in department stores or any

other retail mode in other countries.

In spite of the incentives given by the Govt. to boost exports little progress

has been done in terms of promotion of products to achieve a desired value

addition. The volume of exports though high is only in terms of quantity but

very little in terms of value addition .

The marketing of this product is primarily achieved through appointment of

country distributors who would have access to any mode of distribution

channel the distribution channel adopted by the country distributor may consist

of distribution through appointment of sub agent and sub dealers and in

addition direct distribution to mega textile supermarkets and other shops.

Quality is an important factor and generally consumers are very quality

conscious about these products. Usually they go for branded products like

for instance in Singapore John Cooper is a very reputed brand for middle

level people. Other reputed brands include Mark and Spencer, Peter England,

etc.,

Branded items usually are certified either by a specialised inspection agency

or can be certified by the exporter himself in which case a certificate of

compliance conforming to quality specifications must be issued by the

exporter himself.

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Continuous upgrading of machinery and process and sourcing of raw

materials, as an alternate source is important. The quality of raw material

procured determines to large extent the quality of finished product.

Taking part in various buyer seller meets and exhibitions is important.

The major markets for powerloom knitted fabrics is as shown below

The Major markets for Power Loom Millmade fabrics is as shown below

Dubai, UAE

Belgium

Mauritius

Korea Rep.

Italy

U.K.

GermanyBangladesh

Hongkong

USA

BelgiumMauritius

Japan

Korea Rep.

Italy

Germany

U.K.Bangladesh

Hongkong

USA

During 00-05, three million additional spindles and 30,000 shuttle-lesslooms have been installed. New investments of Rs.50,000 crore havecome in textiles and garment sectors in 00-05.

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CHAPTER 8

EXPORT PROMOTION COUNCIL

Powerloom Development Export Promotion Council

www.pdexil.org

Head Office Regional OfficeGC-2, Ground Floor, Gundecha Onclave, 45/11, 1st Floor,

Kherani Road, Saki Naka, Andheri (East), Perundurai Main Road

Mumbai - 400 072 (INDIA) Palayapalayam Bus Stop

[email protected] Erode - 638 011Tamil Nadu.

PDEXCIL PROVIDES EXPORT ASSISTANCE BY WAY OF

Exploration of overseas market.

Identification of items with export potential.

Market survey and up-to-date market intelligence.

Contact with protective buyers to interest them in your products.

Providing your company’s profile to overseas buyers and vice-versa.

Advice on international marketing.

Display of selected product groups.

Arrangement for supply of indigenous and imported raw materials for

export production.

Resolving shipping and transport problems.

Advice on export finance banking and insurance.

Extensive publicity in India and abroad.

Participation in Trade Fairs and Exhibitions abroad.

Deputation of trade delegations, study teams and sales teams to

foreign markets.

Organising Buyer-Seller Meets in India and abroad caters to all your

developmental needs.

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COTTON TEXTILES EXPORT PROMOTION COUNCIL

The Cotton Textiles Export Promotion Council of India popularly knownas TEXPROCIL fosters the international presence of Indian manufacturers/exporters of cotton textiles.

TEXPROCIL, through its extensive promotion drive has succeeded inestablishing the industry as a reliable source of cotton textiles in theinternational market.

TEXPROCIL helps prospective buyers locate suppliers to theirspecifications and acts as a catalyst between the supplier and the buyer.

Each year, TEXPROCIL participates in several International TextilesExhibitions/ Fairs, organises Buyer-Seller Meets and sponsors overseasdelegations, the objective being to inform importers of the latest developmentin the Indian Cotton Textile Industry and build good and healthy businessassociations between importers, exporters and their related representativeorganisations and Chambers of Commerce.

In addition to representing the industry in bilateral negotiations,conducting market research and disseminating information, the Council offersits services to settle commercial disputes through arbitration.

Texprocil was established in 1954 and headquartered in Mumbai. TheCouncil today has about 8000 members who include composite mills,spinning units, weaving units, knitting units, process houses, fabricators andmerchant exporters.

Since its inception as an autonomous, non-profit export promotionbody, TEXPROCIL has become the international face of Indian Cotton

Textiles successfully facilitating exports.

For the foreign buyer, it has opened the entire range of Indian cotton

yarns, fabrics and made-ups and has become the one-stop source for it

while for the discerning Indian seller it has brought within reach the

opportunities afforded by the global market. The ever-increasing quantum

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of exports and diversity of markets tapped bear testimony to the success of

TEXPROCIL.

The activities of TEXPROCIL extend to all areas related to the

promotion of exports. Collation and dissemination of information, fielding of

trade enquiries, administering quotas, facilitating an interface between

domestic manufacturers and the global market and settling of disputes are

some of the activities of the Council. The details of the activities are listed

below:

Premier Prepository of information

One of the most important functions of TEXPROCIL is the collection of vital

market information and collation of the same. Information with regards to

new products, new ranges, government policies, rules and regulations,

changing trends, quality standards, products commanding greater demand

in the global markets and statistics about the exports of Indian cotton textiles

are disseminated regularly. This not only makes TEXPROCIL the premier

repository of relevant information but also provides the key inputs for both

the Indian seller as well as the foreign buyer in their respective efforts.

Fostering international presence

TEXPROCIL has initiated the process of participating in several international

trade fairs and exhibitions, which has opened a new avenue for Indian sellers

to exhibit their products, field enquiries and clinch deals. This increased

international presence has changed the face of Indian cotton textiles.

Evaluation of new markets

TEXPROCIL has conducted studies in far-flung markets to gauge the

potential of the same and thereby provide reliable information for the Indian

seller. The Council constantly monitors the European market, which is the

most potential one for Indian textiles, and up-to-date information isdisseminated to the members. Foreign offices in Frankfurt, Durban and Hong

25

Kong has allowed TEXPROCIL to be in touch with the pulse of these towardscreating and maintaining good bilateral trade relations. TEXPROCIL sendsdelegations to various markets on a regular basis.

Advertising & publicity

A well-planned advertising and promotional strategy has helped project Indiaas one of the leading sources for good quality cotton textiles. The effort hasbeen to focus on the obvious strengths and convey them to a wide audience.Presence in relevant media vehicles like fashion magazines, event-relatedpull-outs, India reports and leading trade magazines has helped to makeIndia one of the most sought source for cotton textiles.

An effective aid to the Government

Invaluable help has been provided to the Government of India in the area offraming of policies that have a bearing on the exports of cotton textiles. Thishas helped in the creation and nurturing of a healthy trade climate andexporter-friendly policies which have been the primary reasons for the boomin exports. The roles played by TEXPROCIL in the finalisation of the MultiFibre Arrangement and in the negotiations at the World Trade Organisationhave been extremely commendable.

Efficient quota administration

This is one area that has been admirably handled by TEXPROCIL that hasresulted in maximum quota utilisation and smooth flow of trade.

Bulwark against increasing protectionism

The rise in exports has spawned a spate of protectional measures, amongstthem being the fervent efforts by the European industry to protect their own.Anti-dumping has been one of the first attempts in this direction. This hasbeen followed by anti-subsidy investigation. Texprocil provides its membersthe necessary support and technical advice in countering these projectionistmeasures.

The upward swing of exports

26

Exports of Indian cotton textiles has shown tremendous growth in all

categories: yarn, fabrics and made-ups reaching more than 3 billion US$ invalue terms and covering over 185 countries spanning 5 continents. India

has become one of the world’s largest exporters of yarn for every kind ofapplication from hosiery to weaving. Fabrics’ account for a third of India’s

cotton textile exports. Made-ups from India can be found on the shelves ofthe leading departmental store across the globe. Exports of Indian Cotton

Textiles have become the mainstay of the Indian economy and TEXPROCILhas an important role to play in its continued growth.

MARKETING DEVELOPMNENT ASSISTANCE CODE FOR EXPORTPROMOTION EFFORTSFor details of MDA, please refer to Texprocil’s website.

Texprocil’s post 2004 functioning was studied by McKinsey. All these years,it was overshadowed by managing Quota Regime. The Council is expectedto concentrate on

i) educating trade and industry on various aspects of WTO Agreementsand helping them in dispute settlement cases.

ii) dissemination of world trade trends and measures to increase ourmarket share.

iii) promoting joint ventures, foreign direct investments, facilitatingtechnical and marketing tie-ups with world renown Brands.

iv) Vigorous participations in various Trade Fairs and Exhibitions.

v) Providing a suitable mechanism for resolution of disputes and redressalof disputes relating to import / exports.

Export promotion continues to be a major thrust area for the

Government. In view of the prevailing macro economic situation with emphasis

on exports and to facilitate various measures being undertaken to stimulate

and diversify the country’s export trade. 8.312 Marketing Development

Assistance (MDA) scheme is under operation through the Department of

Commerce to support the under mentioned activities:

Administration of the Scheme

27

The utilization of scheme is administered by the E&MDA Division inthe Department of Commerce, Government of India, Udyog Bhavan, NewDelhi - 110 011. Recognized EPCs on product grouping basis, CommodityBoards and Export Development Authorities are eligible for MDA assistancefor development and promotional activities to promote exports of theirproducts and commodities from India. (Para 10).

MDA budget allocation to recognized EPCs for export promotionactivities including specific special development and promotional projectsare finalized in annual meetings with the respective EPCs, which are chaired,by the Additional Secretary and Financial Advisor (AS&FA), Department ofCommerce. Proposals for adhoc grants for exclusive innovative exportpromotional activities, which are considered helpful to promote exports ofIndian products and commodities are examined by the E&MDA Divisionand decided with the approval of the AS&FA (Paras 10 to 12).

Proposals for reimbursement of MDA assistance to individual exportersfor eligible export promotion activities abroad on receipt of specificrecommendations from FIEO, EPCs, Commodity Boards and ExportDevelopment Authorities in the prescribed verification note are consideredat the final stage and approved by the MDA Committee under the Chairmanshipof Director (MDA), Department of Commerce with Director/Dy. Secretary(Finance), Director / Dy. Secretary from one Commodity Division on annualrotation basis as Members and Under Secretary (MDA) as MemberSecretary.

Proposals for grant of MDA assistance referred to by the concernedCommodity / administrative divisions in the Department of Commerce /Ministry of Textiles, from within the overall allocation decided in the annualbudget meeting with the EPCs and against adhoc grants approved for specificinnovative export promotion activities are examined and approved by theE&MDA Division in consultation with the Finance Division of the Department

of Commerce.

Proposals received from concerned EPCs for assistance to contest

countervailing duty and anti dumping duty proceedings initiated abroad are

considered by a specific committee constituted in this regard under the

28

chairmanship of AS&FA (Para 11).

Assistance to individual exporters for export promotion activities

abroad.

All exporters for bonafide overseas marketing promotion activities to

explore new markets for export of their specific product(s) and commodities

from India in the initial phase are eligible for assistance under MDA scheme

in undertaking following activities abroad:

Sale cum study tour subject to eligibility under Para 4 below.

Participation in trade fair / exhibition

Publicity through printed material

Maximum number of permissible sale cum study tours and / or

participation in fairs / exhibitions are two in a financial year. One additional

activity, either sale cum study tour or participation in trade fair / exhibition in

the Latin American Countries would also be permissible in a financial year.

Recognized export / trading houses by the DGFT would be provided

assistance through Federation of India Export Organizations (FIEO) and

other exporters would be provided assistance through concerned EPCs,

Commodity Boards, APEDA & MPEDA.

Sale Cum Study Tour: Assistance would be permissible on travel expenses

by air, eurorail etc., in economy excursion class fair @90% for exporters

having valid SSI registration certificate and @75% for others including

merchant exporters. This would, however, be subject to an upper ceiling of

Rs. 60,000/- per tour (Rs. 90,000 for LAC region). This would also be subject

to meeting the conditions of Para 3 and as under:

A maximum of two sale cum study tours to a particular country would

be eligible for MDA assistance and exporting companies after availing MDA

assistance two times including past cases to a particular country, have to

29

visit that country, if any, on self financing basis.

The tour to single country or a group of countries shall be with a minimum

of four-nights stay abroad excluding journey period.

Assistance shall be permissible to one regular employee / Director /

partner / proprietor of the company.

Intimation application must be received in the concerned EPC, FIEO,

Commodity Board, APEDA & MPEDA with a minimum of 14 days clear

advance notice excluding the date of receipt of application in the office of

the concerned organization and the date of departure from the country.

The company shall not be under investigation / charged / prosecuted /

debarred / black listed under EXIM Policy of India or any other law relating

to export and import business.

Maximum MDA assistance shall be inclusive of MDA assistance

received from all Govt. bodies / FIEO / EPCs / Commodity Boards / Export

Development Authorities / ITPO etc.,

Participation in Trade Fairs / Exhibitions :

Assistance would be permissible on travel expenses by air, eurorail

etc., in economy excursion class fair and / or charges of the built up furnished

stall, electricity and water charges @90% for exporters having valid SSI

registration certification and @75% for others including merchant exporters.

This would, however, be subject to an upper ceiling of Rs. 1,10,000/- per

participation (Rs. 1,40,000/- for LAC region). This would also be subject to

meeting the following conditions :

A maximum of three participations in a particular trade fair / exhibition

would be eligible for MDA assistance and exporting companies after availing

assistance three times including past cases for a particular fair / exhibition,

have to participate in that fair, if any, on self-financing basis.

Assistance for participation in trade fair / exhibition, wherein national

30

participation is arranged by ITPO / EPC Commodity Board / Export

Development Authority, would be provided if participated in the Indian Pavilion

through the concerned organisation or after getting waiver certificate from

the concerned organisation.

Assistance for travel expenses would be permissible to one regular

employee / Director / partner / proprietor of the company

Intimation application must be received in the concerned EPC, FIEO,

Commodity Board, APEDA & MPEDA with a minimum of 14 days clear

advance notice excluding the date of receipt of application in the office of

the concerned organisation and the date of departure from the country.

The company shall not be under investigation / charged / prosecuted /

debarred / black listed under EXIM Policy of India or any other law relating

to export and import business.

Maximum MDA assistance shall be inclusive of MDA assistance

received from all Govt. bodies / FIEO / EPCs / Commodity Boards / Export

Development Authorities ITPO etc.

Initiated by PDEXCIL, Hitech Weaving Park near Palladam. TN is

functioning for the purpose of equipping powerloom industry to fact up the

post-quota regime competition. Several subsidies are being offered. For

details, please contact PDEXCIL.

The Cotton Textiles Export Promotion Council (Texprocil) has a representative

office/ show room in the US (New York). It is intended to serve as the single

point service centre for exporters who want to reach out to the US market,

which accounts for 20% of India’s textile exports.

Besides servicing the North American market, the office will also explore

market potential for Indian goods in South American countries as well.

31

The Cotton Textitles Engineering Centre Cecil Court

Export Promotion 5th Floor, 26 Mahakavi Bhushan

Council 9, Mathew Road Marg (Near Regal Cinema)

Mumbai - 400 004 Mumbai - 400 039

Tel : (022) 363 2910-13 Tel : (022) 202 1477

(022) 202 1522

No. F, II Floor, 101, Ashoka Estate Jaldarshan Housing Society

'Mount Chambers' 24, Barakhamba RoadOpp. Natraj Cinema

758, Anna Salai, New Delhi - 110 001 Ashram Road

Chennai - 600 002 Tel : 011 331 6168 Ahmedabad - 380 009

Tel : (044) 852 5486 Tel : 079 40 9323

World Trade Centre 'Jayanthi, IInd Floor, Export Documentation

Kolkata - 700 001 48-A S.S. Moorthy Street Centre Building

Tel : 033 25 4541 Tuticorin - 628 002 (T.N.) Wellington Island

Tel : 24587 Kochi North End - 682 003

Tel : (0484) 66 6521

2nd Floor, 593 Cross Air Cargo Complex 10/293 Bungalow Road

Cut Road, Gandhipuram Sanganer Airport Congress Bhavan

Coimbatore - 641 012 Jaipur - 302 011 Ichalkaranji - 416 115

Tel : 23 5587 Tel : 0131 55 0020 Dist. Kolhapur

Tel : 22193

'Mayur Complex' Air Cargo Complex

20 Palaniappa Street International Airport

Erode - 638 009 Authority of India

Tel : C/o 77901 Near Mumbai Airport

Sahar Village

Mumbai - 400 057

Tel : (022) 832 4094

Export of cotton consignments can be cleared by customs only after

verification of the contracts for exports entered into by exporters with

Textile Commissioner.

32

CHAPTER 9

QUALITY CONTROL

Quality control is important at every stage of the production process.

The various types of inspection carried out are categorised as follows :

Raw material inspection

In-process inspection

Finished product inspection

Pack goods inspection

In a textile unit the inspection usually is done on basis of production

batches. Statistical quality control methods are used wherever necessary.

This involves taking of few pieces at random then determining whether the

batch should be accepted or not on the basis of the conformance to

specifications of the respective pieces inspected.

For some countries where inspection by a nodal agency is essential

like SGS for instance. The inspection may relate not only to the quality of

the product but also covers other aspects like the age of machinery, pricing

of the product, cost of raw materials, etc. This is being done to ensure that

there is no over invoicing of the product.

Indian Institute of Packaging usually does packaging inspection. This

is important as many overseas buyers are stipulating this in L/C.

The textile committee has laboratories at Tirupur and New Delhi and

they have received accreditation from National Accreditation Board for testing

and calibration Laboratories (NABL). Accreditation for laboratories at

Coimbatore, Bangalore, Cannanore, Chennai and Karur are under way. Other

laboratories of the Committee will also be accredited in a phased manner.

33

Accreditation offers the following benefits: -

The Laboratory accreditation is the formal recognition by a neutral body

that the laboratory has the competence to carry out the testing of specific

parameters. The advantages of availing the services of an accredited

laboratory are:

Qualified and experienced staff are employed;

Calibrated testing equipments are used for the testing of different

parameters;

Adequate quality assurance system is maintained;

Proper sampling procedures are adopted;

Sound testing procedures are used;

Valid test methods are followed;

Tractability of measurements to national standard is maintained; and

Accurate recording and reporting procedures is adopted.

In Jun 04, a new Institute, Sardar Vallabhbhai Patel Instt. of Textile

Management, was opened in Coimbatore. It is being funded by PDEXCIL,

AEPC and industry majors.

This institute would be developed as centre of excellence in textile

management studies on the lines of IIMs. The courses would focus on

financing, marketing, IT. The need for such an Instt. is felt considering the

fact that manpower for the industry at managerial level continued to be

neglected and the globalised textile trade too demanded change in attitude

among the entrepreneurs about inducting professional managers.

34

APPENDIX

Cotton Textiles EPC Mumbai

Websites worth visiting

http.texmin.nic.in

http.dgftcom.nic.in

http.otexp.ito.doc.gov

www.introcen.org

www.unctad.org

http//sigl.cbc.en.int

http//www.gksoft.com/govt

http//www.tradeindianet.com

http//www.indianconsulate.org.hk

http//www.cottonpromotion.org

CONTENTS

Chapter TOPICS PAGE No.

1. INTRODUCTION 1

2. IMPORTANCE OF POWERLOOM ANDMILLMADE TEXTILES 3

3. PRODUCT CATALOGUE 5

4. TEXTILE POLICY 8

5. TYPES OF TEXTILES 11

6. EXPORT STATISTICS 19

7. MARKETING 20

8. EXPORT PROMOTION COUNCIL 22

9. QUALITY CONTROL 32

APPENDIX 34

0211

POWERLOOM

Students and Exporters must please note that they should check with the

authorities regarding the functioning of any of the various schemes

enumerated in the following chapters. This is because additions, deletions

and amendments to such promotional schemes are quite common.The

general procedure for exports which are common for all export categories

such as documentation, marketing, finance, etc have not been covered

here, as they are given in greater detail in the main course materials.

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