Government

Govt mulls may curb export of cotton, yarn to check prices

New Delhi: In a concerted effort to curb the rising prices of raw cotton and yarn, the Government
is mulling various measures to discourage the export of these commodities. On yarn, it is likely
to notify suspension of the duty concession of 7.5% available to exporters under the Duty
Entitlement Pass Book (DEPB) scheme. It might also make the registration of cotton yarn export
compulsory, to keep track of the development. At present, only registration of raw cotton export
is mandatory. The other step possible is imposition of a 2% export duty. In the wake of a tight
global demand-supply position, prices in the domestic market had shot up this cotton year
(October-September). The price of Gujarat’s benchmark Shankar-6 variety, Rs 21,000 to Rs
22,000 a candy (356 kg) at the season’s onset, are now Rs 29,000 a candy. Given the rising
prices of raw cotton, the Southern India Mills’ Association and the Confederation of Indian
Textile Industry had demanded a ban on exports from India. This was opposed by the traders’
body, the Cotton Association of India, which said there was no need to do so. About 7.9 million
bales (each bale is 170 kg) have already been registered for exports, of which 5.5 million have
been shipped so far, mainly to Hong Kong, China, Pakistan and Bangladesh. China’s share in
that is 56% and these four countries together account for nearly 80% of exports, according to
data from the textile commissioner. The firm levels of cotton prices fuelled cotton yarn prices.
Prices jumped this year by 40 to 45%. Hit hard by the soaring yarn prices, the Tirupur Exporters
Association members (in Tamil Nadu) recently went on a day’s fast to protest. The knitwear
units there had contended they could not survive in the global market with this level of yarn
prices. The cotton yarn industry believes withdrawal of DEPB benefit would bring down the
prices in India. “The cotton yarn market has eased in the past two days. Yarn exports have
slowed, due to the rupee rising against the dollar. Cotton yarn prices are likely to fall by five per
cent in the days to come as a result of suspension of DEPB benefit to yarn exporters,” said
Bharat Malkan of IB Yarn Agency, based in Mumbai. The Cotton Advisory Board (CAB) met
today and estimated the crop at 29.2 million bales for 2009-10. This is marginally lower than its
estimates last December of 29.5 million bales. The acreage had risen from 9.4 million hectares in
2008-09 to 10.18 million hectares this year.
Mumbai will have its own textile museum
Mumbai: The Maharashtra government has identified four acres of land in Dadar, Mumbai, for
setting up a textile museum to showcase the history of textile industry in the city. Dadar was
once a centre for textile industries, before the strikes in the early 1980s brought with it disaster
for the industry. According to an official from the textile industry, the plot is located within the
Kohinoor Mills and that, it has been given away to the Brihanmumbai Municipal Corporation
(BMC). Although the state government will support the establishment of the centre by virtue of
logistics, additional finances and historical data, it will be constructed solely by the BMC. The
Archaeological Survey of India (ASI) will also aid the BMC in setting up the project. According
to government officials, the project is yet in the planning stages and that, the Chief Engineer,
Development Plan; Director, Engineering and special projects from the BMC will be working on
the development plans.
Road show to attract textile investors to Karnataka
Bengaluru: To attract national companies in the textile industry to take part in the international
investor’s meet in Karnataka during the first week of June, the Karnataka government had
organised road shows in Surat. Gracing the road shows in Surat were Goolihatty D Shekhar,
Minister of Textile, Youth Services and Sports in Karnataka, along with other members of the
textile industry. Further more, with an aim to expand the textile industry in state, Karnataka had
recently announced a new policy, ‘Suvarna Vastra Neethi’. In addition to the perks available
under the TUF and SITP schemes to investors who intend on setting up units in Karnataka, they
will also be given other subsidies such as easier land acquisition, power subsidy, capital subsidy,
entry tax reimbursements and the like. All these incentives will be offered to both small and
large-scale textile industries, avers an industry expert.
Jharkhand to have two elite silk cocoon centres
???: The sericulture department in the state of Jharkhand is planning to set up two elite cocoon
seed stations, in a bid to increase cocoon seed production. Jharkhand has made numerous strides
in production of silk and is now the leading producer of silk, in India. Cocoon seed production
which stood at 0.5 million in the previous fiscal year will now shoot up to one million, after
setting up of these two stations, alongside which, it will also be able to supply commercial
quality elite cocoon seeds. Jharkhand is a leader in Tussar silk production and this project will
help to fill up the demand-supply gap in the country. Current demand for Tussar silk stands at
around 26,500 tons, while supply of the same touches only 18,500 tons in the country. Project
Manager of Jharcraft, Mohsina Khatoon said, “The two elite stations are planned to be opened at
Chakradharpur (West Singhbhum District) and the other at Seraibad in Santhal Pragana Belt and
the estimated cost of building each elite station is Rs 10 million.” Giving reasons for building
these new silk stations, she said, “This is because of the reason that Central Silk Board had given
assurance of setting up and managing two elite seed stations, but none of them are functional, so
Jharcraft decided to start two elite stations to fulfill the demand of tussar silk”. She added by
saying that, “The elite seed station in Jharkhand will help not only the state but also other states
by providing good quality seeds and will also act as a model elite seed station for other states, by
producing four quality of seeds; Elite seed (P4, Nuclease seed (P3), Basic seed (P2) and
Commercial seed (P1) cocoons.
Karnataka to shut down silk marketing board
Bengaluru: The Department of Sericulture has decided to shut down their non-viable unit,
Karnataka Silk Marketing Board (KSMB). The board was incurring losses since its institution in
1979, excepting for once in 2003-04, when it recorded a net profit of Rs 1.165 million.
Venkataramanappa, State Minister for Small Scale Industries and Silk, while addressing the
press said that, it decided upon the closure of the board following the recommendations of A F
Ferguson and Company, a consultancy firm. Government had assigned the consultancy firm to
review the board’s functions and suggest modes and means to revitalize it. But instead, the
consultancy firm suggested shutting down the board. The Minister said that, imports, unrestricted
trade in silk and competition from the private sectors turned KSMB into a loss making unit. He
also said that, though during the last fiscal year, KSMB traded in 163 tonnes of silk yarn, way
higher than the figures recorded in the previous years; it still failed to book profits. Even after
reducing the operational cost and exercising a cut on the amenities provided to its employees, the
board’s turnover was not sufficient enough to keep it functional. During 2009-10 KSMB
incurred losses of Rs 30 million and a year before it made a loss of Rs 36 million.
Venkataramanappa clarified that, as the board’s operational cost is higher than its earnings it was
impossible to revive itself even if it manages to trade 500 tonnes of silk yarn. Therefore the
decision was taken to shut down the board. A report is due for submission before the State
Cabinet for their approval and closure of the board will come into effect once the state cabinet
sanctions the report.
Orissa targets to produce about 500 tons of silk by 2020
Bhubaneshwar: The Orissa government has decided to set up a State Sericulture Research and
Development Institute (SSRDI) at an estimated cost of Rs 15 crore for speedy growth of the
sector with an aim to produce about 500 tons of silk by 2020. Inaugurating a workshop on
sericulture management here, chief minister Naveen Patnaik said, "Sericulture has a vast
potential in the state. It should be utilised to provide livelihood to tribals and backward caste
people." Mr Patnaik also announced that the state government would soon launch health
insurance scheme that would benefit more than six thousand sericulture farmers. Besides six
thousand farmers, more than two lakh people, most of them tribals, are directly involved in silk
production and auxiliary activities. The health insurance scheme will be supported by the Central
Silk Board. Central Silk Board chairman, H. Hanumanthappa, who was present on the occasion,
assured that all sorts of assistances would be given to the sericulture farmers in the state.
"Sericulture sector is going to play a major role in poverty alleviation, especially in tribal
dominated pockets," Hanumanthappa said. Though present growth rate of silk industry in India
was about eight per cent, demand for silk is growing at 10 per cent, said Handloom and
Handicraft Minister Anjali Behera. While 10,000 silk weavers' families in the state need 500 tons
of silk, Orissa produces only 81 tons. "The need is to strengthen the sector to fill the gap," the
minister said. Stating that Orissa had an excellent climatic condition, soil and technology, Behera
said silk production was gradually increasing in the state. While only 22 tons of silk were
produced in 2005-06, it had reached 81 tons in 2009.
Karnataka expects Rs 2,000 crore investment from Gujarat textile firms
Bengaluru: The Karnataka government expects Gujarat-based textile firms to invest around Rs
2,000 crore for setting up units in the state to take advantage of its abundant cotton production.
"Mills in Surat (in Gujarat) source cotton from Karnataka to a large measure. We impressed
upon them that they can set up units in Karnataka itself which will lower production costs,"
Karnataka's Textiles Minister Gulihatti D Shekhar told reporters. The minister recently held a
road-show in Surat which was attended by about 50 investors. Memorandum of Understandings
(MoUs) envisaging an investment of around Rs 2,000 crore by Gujarat-based companies,
particularly in processing and spinning, are expected to be signed in the Karnataka government-
driven Global Investors' Meet (GIM) slated to be held here between June 3 and June 4, he said.
Karnataka produces nine lakh bales of cotton annually. The state's textile sector expects MoUs
for investment between Rs 5,000 crore and Rs 10,000 crore to be signed at the GIM, the minister
said.
Industry
India’s 2009/10 cotton exports seen rising 129%
Mumbai: India's cotton 2009/10 exports are likely to rise to 8 million bales, up 129% on year,
drive by strong demand from China and Bangladesh, a senior government official said. The
country had exported 3.5 million bales in 2008/09 and the government initially estimated exports
of 5.5 million bales for the year. But a revival in world economy boosted shipments of the fibre
and so far India has exported 5.5 million bales in the year that began in October, said A.B. Joshi,
Textile Commissioner and Chairman of Cotton Advisory Board (CAB). "Exports to China has
been very good, about 3.08 million bales or about 56% of the exports so far," Joshi said, while
Bangladesh accounted for about 15%. World 2009/10 cotton ending stocks will slump almost
20% year-on-year because of lower output in top consumer China and increased consumption in
India and Turkey among others, influential industry analyst Cotlook said. As of April 8 exporters
had registered 7.9 million bales with the government for shipping, indicating exports by the end
of September could surpass 8 milllion bales, industry players said. Joshi said the soaring exports
have kept cotton prices firm so far in the cotton year, prodding textile exporters to seek a ban on
cotton exports for lower prices at home. "We have at this stage no plans to ban cotton exports,"
Joshi said. He also declined comment on market talk of the removal of a 7.5% duty concession
on cotton yarn exports. India's cotton acreage in the coming season in 2010/11 is likely to remain
same as previous year or a tad higher, Joshi said. CAB has estimated 2009/10 acreage at 10.17
million hectares from 10.15 million hectares in the previous year. India is likely to harvest 29.2
million bales of cotton in 2009/10, up from 29 million bales in the previous year.
IL&FSC: India still lacks skilled labour
Bengaluru: India lacks skills necessary to exploit the potential of the textile sector in the world
market, especially in technical textiles. This was stated by G. Somasundaram, Head, Industry
Linkages (Skill Development), Infrastructure Leasing and Financial Services Cluster, Bangalore
while addressing a one-day workshop on Fashion Business-Emerging Opportunities - Indian
Garment Industry. There is an urgent need for a synergy between the industry and the
educational institutions to come together to offer skill development courses, lest the
opportunities may slip, according to Somasundaram said adding that, "In the next ten years, more
than three million persons will be required by the industry." "Garment exports formed 45% of
total textile exports from the country. While in other industries, the third generation
entrepreneurs expanded the horizon further, the same was not the case with garment industry in
India." Fragmentation and absence of vertical integration affected the industry most.
Establishment of clusters, common facility centres and development of brands held the key to
success. The increasing middle income group, expanding women employment, children-centric
demands, special requirements of different segments such as transport, medicine, construction,
sport, home are creating niche markets with immense scope. He reminded that people's
aspirations and expectations are such that together with the product and price, they looked
forward to quality, service and experience. He underscored the need to control the price of yarn
that affected the textile sector severely and for the government to release the dues early as it
affected the working capital of the industry. Around Rs 8,000 crore is blocked in this respect, he
said. Earlier, delivering the inaugural address, C. Balasubramanian, Manager, Juki India, a
Japanese MNC and a pioneer in automated industrial sewing machines with 60% share in the
market, said fashion has become a big business and a highly complex multi-billion-dollar
industry contributing significantly to national economies in India, China and a few others.
"Creativity and innovation hold the key to success in the industry," he added. The workshop was
organised by the Madurai District Tiny and Small Scale Industries Association, Tamil Nadu
Readymade Garment Manufacturers Association and the Department of Home Science and
Fashion Designing, Fatima College, Madurai.
Biotech firms criticize controlled Bt cotton seed prices
Bengaluru: As per the Association of Biotech Led Enterprises (ABLE), cost of Bt cotton should
be determined by market dynamics, as this would promote free market competition and thereby,
offer varied choices of cotton seeds for seed buyers. Controlling the Bt cotton seed prices is
definitely a global concern. Since 2006, a couple of state governments have been incessantly
cutting down the MRP of Bt cotton seeds. This has led to an indirect control on technology fees
by the state governments. This indirect control, by the state governments, has hindered
innovation of agriculture biotechnology. It has also resulted in huge losses with respect to farmer
centric research investment, thereby, leading to wearing away of the industry cost, said the body.
ABLE is also hunting for certainty in commercialisation, predictability in regulatory process, a
free market competitive environment and protection of IPR to continue innovation in agriculture.
China keen to import 100,000 tons Indian cotton
Mumbai: The China Federation of Supply and Marketing Cooperatives sent a three-member
delegation, coinciding with the visit of the Chinese Vice-Premier Hui Liangyu's visit to India.
During the visit, the three-member team met representatives of Indian cotton companies and
signed an agreement to import 100,000 tons of cotton in the current year. Amongst other things,
they also discussed issues on expanding areas of cooperation and inked other agreements linked
to supply and imports of cotton linter, cotton seed and cotton yarn. They also discussed
possibilities of establishing joint ventures in India, finding purchasing agents for each other and
promoting and expanding sales of Indian cotton in China.
French firms to woo Ludhiana textile manufacturers
Ludhiana: French companies engaged in manufacturing of textile machinery have set their eyes
on India. To introduce the French technology to the Indian textile manufacturers and promote
Indo-French partnership, the French Trade Commission of the Embassy of France in India,
Ubifrance (France’s agency for the international development of French companies) and the
French Textile Machinery Manufacturers’ Association (UCMTF) are organising a seminar at
Ludhiana on April 23. Many textile manufacturing outfits are concentrated in and around
Ludhiana. They largely import machinery from Switzerland, Germany and Italy. As most of the
units in Punjab have plans for expansion in near future, the French players expect to meet their
potential buyers and explain them about new technologies. The sources in French Trade
Commission, New Delhi informed that about 200 participants had confirmed their participation.
The participating French companies are Staubli, Laroche, N Schlumberger, Superba, Ritm,
Dollfus & Muller, Callebaut de Blicquy, Rousselet,Asselin,Thibeau Perfojet and Aesa Air
Engineering. The well-known French companies, most of them world leaders in their
specialities, will present their state-of-the-art technologies, analyse the market trends, the
business opportunities and offer technical solutions for enhancing the competitiveness of the
Indian textile industry in a challenging world. A prominent textile manufacturer of Punjab said
the foreign players nomally showcased their products and technologies at the trade fairs and
exhibitions. This was for the first time that a group of machinery manufacturers would visit them
at their doorstep in synergy with the French embassy. The units here need exposure in technical
textiles like geotextile, meditextile and protextile (fireproof). He added the participants look ed
forward to getting an insight onto the state-of-the-art technologies of the developed world.
Corporate Update
SwissTex Winterthur AG acquires RITM SAS
Winterthur: SwissTex France SAS, a 100% affiliate of SwissTex Winterthur AG, has acquired
the assets and goodwill money from the receiver of RITM SAS with effect of 22 April 2010.
SwissTex Winterthur AG is a global manufacturer of textile machinery and systems provider
with a profound knowledge and experience of BCF and T&I extrusion processes for the
continuous filament market. The company has 75 employees and belongs to Bavaria
Industriekapital AG, located in Munich, Germany, which is an industrial holding with more than
3000 employees. Bavaria is a listed company on Frankfurt Stock Exchange. Up to the end of
2006 RITM and SwissTex were part of the Rieter Group. Both worked together in Rieter’s
Filament Yarn Technology Business Group offering extrusion lines, twisting and cabling
machinery to the market. The business activities of SwissTex France SAS are affiliated to the
Textiles, BCF, T&I and glass industries fields.

Arvind to seal deal with Italian label, Energie

Mumbai: Arvind Brands is close to a deal to bring Italian menswear label Energie to the country.
Arvind Mills, which retails internationals brands such as Arrow and Izod, has been in talks with
Italian fashion firm Sixty Group that owns Energie for past many months. J Suresh, CEO of
Arvind Brands and Retail, confirmed talks with Sixty Group, but added that nothing has been
finalised yet. Besides Energie, Sixty Group’s portfolio includes fashion denimwear brand for
women Miss Sixty, Killah Refrigiwear, Murphy and Nye, Richlu and Baracuta. Arvind Brands is
pursuing a licensing agreement for Energie that includes manufacturing the products in India, the
person quoted first said. A manufacturing deal will give the fashion house more room to price
the garments attractively for the Indian market. Energie is expected to help Arvind enter
premium and super-premium denim segments with prices starting at around Rs 3, 500 for a pair
of jeans. Energie is expected to be positioned a notch over Levis Strauss in India, while operating
at a lower price point than Diesel’s, which is priced at around Rs 8,000.
Two major Indian apparel brands go organic
Mumbai: When it comes to going green, two major Indian apparel brands have taken the lead.
Van Heusen and Arrow have come up with 100% organic lines made of cotton, linen and natural
dyes, doing their bit for the environment and also spreading awareness among consumers. Shital
Mehta, COO, Van Heusen, said, “Limited resources and increasing productivity have put the
natural environment around us under tremendous pressure. Reason enough for us (Van Heusen)
to get serious about starting down the eco-friendly path. “It’s a conscious attempt to make all of
us understand the importance of being earth-friendly. Even something as small as weed removal
for cotton crops has been done physically without reliance on chemical killers,” Mehta told
IANS. Arrow’s product manager Punit Chauhan said, “The way the world is heading, we feel it
is critical for us to create awareness among ourselves so that we can contribute towards saving
nature and our eco—system. The need to bring awareness among consumers at this point of time
is critical for every organisation,” he added. While Van Heusen’s eco-friendly apparel range
starts at Rs 1,599, just like their other clothes, Arrow’s line is slightly higher compared to their
normal line. Mehta explains the tedious effort that goes behind churning out an eco-friendly line.
“Every care has been taken to ensure that no artificial or chemical substances are used in this
line. Balancing the population of insects by using trap crops to lure pests away is just another
example of how committed we (Van Heusen) are with this line,” explained Mehta. “And what
better way to reap the benefits of these efforts than to follow natural cycles and harvest the
cotton when it’s fully ready,” he said. Arrow has plans to expand its green effort by introducing
and using more natural fibres and recyclable collections.
Rajnagar mills to once again clatter with new machinery
Ahmedabad: The clatter of machines will be once again heard in the, National Textile
Corporation Ltd. (NTC), owned Rajnagar Textile Mills, which had downed its shutters a few
years back. At its peak, it employed around 2,000 workers. The refurbished Ahmedabad, based
Rajnagar Mills will reopen in September 2010, with spanking new machinery, which will
include 36,000 spindles and 72 high-tech looms and will employ around 550 workers. The
refurbishing of the mill is part of a Rs 5 billion modernization process initiated by NTC to restart
22 mills across India. The new mill is being built from scratch in the compound of the mill and
will entail and expenditure of Rs 1.5 billion. Ahmedabad Textile Industries Research Association
(ATIRA) has been closely involved in the modernization process of Rajnagar Textile Mills, since
it has drawn and chalked out the plans for the same. The mill is installing hi-tech machinery from
manufacturers like Trumac, which has collaboration with Trutzschler, Germany and Lakshmi
Machine Works. The mill will have two blow-room lines, 18 Chute-feed cards, 10 draw-frames
with auto-leveler, 13 Combers, nine Speed-frames, 30 Ring-frames, 11 Auto-Coners, 2 Direct-
Warping machines, one Sizing machine, and 72 Air-jet looms. In all, the installed capacity will
be 36,000 spindles.
Mumbai will have its own textile museum
Mumbai: The Maharashtra government has identified four acres of land in Dadar, Mumbai, for
setting up a textile museum to showcase the history of textile industry in the city. Dadar was
once a centre for textile industries, before the strikes in the early 1980s brought with it disaster
for the industry. According to an official from the textile industry, the plot is located within the
Kohinoor Mills and that, it has been given away to the Brihanmumbai Municipal Corporation
(BMC). Although the state government will support the establishment of the centre by virtue of
logistics, additional finances and historical data, it will be constructed solely by the BMC. The
Archaeological Survey of India (ASI) will also aid the BMC in setting up the project. According
to government officials, the project is yet in the planning stages and that, the Chief Engineer,
Development Plan; Director, Engineering and special projects from the BMC will be working on
the development plans.
TPG invests Rs 120 crores in Lilliput
New Delhi: A minority stake for Rs 120 crores in Lilliput Kids-wear, children’s apparel and
accessories retailer, has been purchased by a private equity firm, TPG, informed a company
official. Last week, an undisclosed stake for Rs 270 crores (US$ 60 million) had been purchased
by Bain Capital. Everstone, a domestic investment firm, owned 35% stake in Lilliput, but exited
its four-year old investments by selling all its shares to TPG and Bain Capital. Moreover, two
new private equity (PE) firms also bought shares of the company, as per Sanjeev Narula,
Founder and Managing Director, Lilliput. These two PE firms purchased Lilliput shares, at a
time, when the company is working towards raising funds by selling its shares to public, through
a Initial Public Offering (IPO). The privately-owned Lilliput has over 260 stores in India and
nine other countries. Lilliput supplies products to multi-brand outlets in India as well as in other
countries and includes the likes of GAP Kids, Primark, Old Navy and Carter’s American Eagle.
Vilan to invest Rs 42 crores in spinning mill
Vijaywada: Vilan Apparels Pvt Ltd, a Vijayawada based hosiery and undergarments
manufacturing company, will invest Rs 42 crores for establishing a new spinning mill at Cherala
in Prakasam district. The mill will be developed on a 15 acre plot and will have a capacity of
16,000 spindles. T. Ramesh Babu, Director, Vilan, while addressing the press said that,
construction work for the mill has already commenced and it is likely to begin operations by the
end of this year. Funds for establishing this new mill will be generated through internal accruals.
More so, over the next five years, the company intends on investing around Rs 100 crores to
establish itself as a national brand. Babu said that, with the support of this new investment, they
expect that, their turnover this year will be 25% higher than last year’s turnover figure of Rs 350
million. In addition, we also expect that in the next five years we will achieve a turnover of Rs 1
billion. Around all this, the company has also introduced into the Andhra Pradesh market, four
new products namely Broadband, New Feel, Soft Skin and Bamboo socks, ranging between Rs
125 to 150 per unit.
Raymond to open 100 new stores by year end
Mumbai: This year, Raymond Ltd, through its franchisee network, intends to launch 100 retail
outlets in tier-IV and V cities like Bijapur, Mandya and Bellary in Karnataka, and Ahmednagar
and Bhandara in Maharashtra. The company incurred an investment of around Rs 25 crores to set
up over 76 franchisee stores during 2009-10. At present, the branded apparel and textile major
has 520 odd-stores spread over an area of around one million square feet, of which 60 are
company held outlets while 450 are franchisee-owned. ‘The Raymond Shop’, exclusively
displays Raymond brands like Color Plus, Park Avenue, Parx and others. Of the total sales of the
company, 49% comes from retailing. Rakesh Pandey, Raymond President, Retail and Business
Development, said that, they expect the new 100 stores that they plan to establish this year would
earn them revenue worth Rs 30 crores. The company recently inaugurated a ‘made-to-measure’
store at Palladium, situated at Phoenix Mills mall, Mumbai. The store spread over on an area of
500 square feet, primarily displays custom fit garments. Raymond recorded a growth of seven%
during the 2009 fiscal on a same-store-sales basis and generated revenue totalling to Rs 3.75
billion during the third quarter of 2009-10. Raymond Apparel Ltd, ColourPlus Fashion Ltd,
EverBlue Apparel Ltd and Silver Spark Apparel are amongst its other subsidiaries. Gautam
Singhania, CMD Raymond Ltd., had announced that, the company as part of its expansion
strategy, intends to invest Rs 10 billion towards setting up of around 300 new stores across India
by March 2011.
Notice puts realty plans of Bombay Dyeing on hold
Mumbai: Bombay Dyeing has moved the Mumbai High Court, challenging the show-cause
notice issued to them for carrying out construction work of their multi million dollar project
coming up on two of its vast mill plots. This notice has put at risk the company’s realty projects
and has also further increased the fight for open space and economical housing in the island city.
The division bench of Justice J N Patel and Justice A P Bhangale who scheduled the case for
hearing on April 19, also directed MHADA (Maharashtra Housing and Area Development
Authority) and BMC (Brihanmumbai Municipal Corporation) to file their reply in connection to
the company’s petition. The show-cause notice, issued on March 26, 2010, was filed in
accordance with the directions followed by the monitoring committee, constituted to supervise
the mill land development projects, under the leadership of Justice (Retd) B V Chavan. The
committee issued the show-cause notice to Bombay Dyeing as they failed to handover the land to
MHADA for developing low-cost housing and the BMC for developing a recreation ground. The
committee also pointed out that, on one hand where, construction of houses for workers and
redevelopment of chawls was on a standstill, the development work on the two said mill plots,
according to them, was inappropriate. The projects, taking shape on the erstwhile mill plots of
the company include, a 38-storey residential-cum-commercial tower on the Spring Mills plot in
Dadar-Naigaon, measuring around 127,000 square metres, whereas, retail, IT space and also a
hotel are in the pipeline, on the Worli plot that is spread over an area of 102,000 square metres.
In their plea to the court, to cancel the notice, Bombay Dyeing highlighted the adversities that
would follow, owing to the show-cause orders such as, the company’s investment, several
hundred workers engaged in on-site construction and above all, the ordeal that 124 people, who
have booked flats in the Spring Mill tower, would face.
Suzlon bags Kishangarh Textile Park wind power project
Pune: Kishangarh hi-tech textile park (KHTP) has awarded a contract for 8.4 MW wind power
project to world’s third leading and India’s largest wind turbine manufacturer, Suzlon Energy
Limited (SEL). The project will consist of 4 units of Suzlon’s model S-88 2.1MW wind turbine
generators to be installed at the Tejuwa wind farm near Jaisalmer in Rajasthan and shall be
commissioned by October 2010. Suzlon will deliver a complete end-to-end solution to KHTP
including equipment supply, project commissioning, power evacuation and also the
comprehensive operations and maintenance services. KHTP will sign-up a 20 years Energy
Wheeling Agreement(EWA)with Rajasthan Rajya Vidyut Prasaran Nigam Limited and the
power generated will be wheeled for utilization at KHTP’s state-of-the- art hi-tech integrated
textile park being developed at kishangarh (Dist. Ajmer) in Rajasthan. Announcing the award of
project contract to Suzlon, Mr. Vijay Agarwal, Chairman of KHTP said, “Textile industry in
Rajasthan has a long standing tradition and repute. KHTP’s decision to harness the wind power
for new integrated textile park would serve a dual purpose of providing power at economical rate
and showing our commitment towards environmental friendly technologies.” Adding further Mr.
Agarwal said, “We have relied on Suzlon because of their reliable technology, market leadership
in India and established execution capabilities in Rajasthan. We look forward to Suzlon to
deliver a successful start in this new venture” Speaking on the project Mr. Ashok D’Sa, President
– South Asia and Middle East, Suzlon Energy Limited, said: “KHTP will play a leading role in
the textile industry in Rajasthan and their decision to harness green power is indeed appreciable.
We acknowledge with gratitude the confidence shown by KHTP in Suzlon and look forward to
strengthening our relationship”. KHTP’s integrated textile park under development at RIICO
Industrial Area, Silora, Kishangarh (Ajmer), Rajasthan is set-up under the Scheme of Integrated
Textile Parks (SITP) of Ministry of Textiles & shall consist of weaving and process units.
Forbes Brands to enter leisure wear market
Mumbai: Shapoorji Pallonji's branded apparel venture Forbes Brands is looking at entering the
leisure wear market in the six months, after marking its foray into the men's innerwear segment
recently, a top company official said. "With our foray into men's innerwear with the launch of
FACIT brand, we are also looking at entering men's leisure wear market, which will comprise
bermudas, shorts, pajamas and shirts, in another six months," CEO Forbes Brands Nischal Puri
told PTI. He said Forbes Brands ventured into innerwear because they understand knitwear very
well. "With our Forbes Campbell Knitwear Limited unit in Belgaum manufacturing and
exporting men's T shirts, it was not difficult for us to get into innerwear, where we envisage a lot
of potential as existing brands failed to capture new gen trends, the demand of youth." Puri said
part of the firm's one year research on men's Rs 6,000 crore innerwear market involved
conducting a survey in Delhi and Mumbai, which revealed that 65% consumers buy existing
brands as "there are no other options". It was then the firm thought of targetting the medium and
premium innerwear segment by creating new products with funky designs and sytlish colours, to
not only appeal to the youth, but "something that even a 35-year-old would feel comfortable
with," Puri said.