Thursday, October 22, 2009

Dayanidhi Maran leads trade delegation to Europe

ROAD SHOWS ( PHASE -1) TO MOBILISE FDI IN TEXTILES SECTOR LINED UP

IN ZURICH, MILAN & ISTANBUL

  

Thiru. Dayanidhi Maran, Minister of Textiles will be leading a high level trade delegation to Switzerland, Italy and Turkey from October 26, 2009 to November 03, 2009, to attract foreign investment in the Indian Textiles Sector. The areas identified are, establishment of Green Field Units in textiles machinery, fabric manufacturing, garmenting, manmade fibre and yarn, and bringing investments in technical textiles and clothing brands to Indian domestic market.

Recognizing the importance of foreign investment in textiles sector, the Ministry of Textiles had earlier commissioned a survey to identify countries with potential for investment in India. This study had identified companies in Germany, Switzerland with expertise and potential for investing in Textiles machinery and high-end fabric, and Turkey, Italy and France with potential for investing in garmenting and apparels.

These efforts to attract investment in textiles sector reflect the philosophy of the Thiru Dayanidhi Maran. India has strong domestic market which helped it to survive the world recession. Hence, ‘Come to India, Manufacture in India, Sell in India and Make Money in India’. It is the same philosophy that the Minister had applied in the Telecom Sector with magnificent results. In order to achieve the desired objectives, it is for the very first time that the Government and the Industry have synergized their efforts to attract investment in textiles sector. This is reflected in the composition of the delegation, which comprises various captains of the textiles industry.



As a part of Phase -1 of the Road Shows , in Zurich, Switzerland , the trade delegation will have interaction with major textiles machinery manufacturers like M/s Beninger (Processing), M/s Rieter {(Spinning) (turnover US$3 billion)}}, M/s Jacob Muller {(Warping and weaving machine (turnover US$ 220 million)}, and high end fabric manufactures viz., M/s Weisbrod-Zuerrer Ltd.



In Milan, Italy, the delegation will interact with CEO of M/s Miroglio {(Yarn, fabrics and garments) (turnover US$1.13 billion)}, M/s Marzotto {(High end woolen fabric and suiting) (turnover US$1 billion)}, M/s Gruppo Coin {(Apparel and retail) (turnover US$1.1 billion)}, M/s Vincenzo Zucchi {(Home textiles) (turnover US$245 million)}, M/s Radici Group {(Fibre) (turnover US$1.7 billion)}, M/s Sinterama {(Yarn) turnover US$130 million)}, M/s Zegna {(High-end menswear and sportswear) (turnover US$ 1.3 billion)}.



In Istanbul, Turkey, the delegation will interact with representative of M/s Bilsar (Designing & Production of Shirts) and M/s Yunsa Yunlu san. Tic. A.S {(Woollen and worsted menswear fabric, woolen and cotton fabrics for women wear, home and office furniture fabric and corporate wear (turnover US$137 million)}.

In the Phase-2, the trade delegation will visit Frankfurt, Germany and Paris, France from November 23-26, 2009 with a view to attract investment in technical textiles. It may be recalled that the Government has allowed 100% FDI in textiles sector. India has a vertical and horizontal integrated textiles value chain, and represents a strong presence in the entire value chain from raw material to finished goods. The average labour cost in India is US$ 0.7 per hour compared to US$40.75 per hour in Switzerland, US$22.31 per hour in Italy and US$4.27 per hour in Turkey.

The Indian textiles industry will require an additional investment of US$ 24 billion (Rs. 110, 000 crore) by 2015 to maintain a high growth rate of 8%. This may include domestic investment of US$ 18 billion (Rs. 82,550 crore) and Foreign Direct Investment of US$ 6 billion (Rs. 27,490 crore).The Indian Textiles Sector had been able to attract only US$200 million (0.6 % of the overall FDI of US$ 33 billion) in the year 2008, in comparison, the Chinese Textiles Industry has been able to attract foreign investment of US$ 10 billion (Rs. 45,800 crore). There is an urgent need to attract and sustain FDI in textiles sector if India has to achieve the goals of employment generation, technology up gradation, creation of brand India and attain 4% share in global trade in textiles and clothing. India, which is the only bright spot along with China in otherwise bleak global economic scenario, with ever increasing per capita, household and discretionary income, with US$ 425 billion (Rs. 19,46,500 crore) retail Industry will be an attractive destination for foreign Investment in coming years.



Indian Textiles economy which is US$62 billion (Rs. 283,966 crore) is expected to reach US$110 billion (Rs. 503,380 crore) by 2015 comprising US$65 billion (Rs. 274,800 crore) domestic and US$ 45 billion (Rs. 206,000 crore) export. Indian Textiles and Apparel market is currently valued at US$ 40 billion (Rs. 183,200 crore) and is growing @ 14%, and most of the top global apparel retailers have their scouring network in India like JC Penney, Nautica, Dockers, Bed Bath & Beyond, Target, Kohl’s, Liz, cK, Sprit, M&S, GAP, United Colors of Benetton, Mango, Zara and Dillard’s.



The Switzerland with GDP of US$492.6 billion has a textiles trade of US$13 billion of which textiles trade with India is of US$89 million, and Swiss major Corporations like Reiter (Textiles Machinery), Nestle (Food products), Clarant (Chemicals) and Noviratis are firmly established in India. Italy with GDP of US$2.3 billion have a total textiles trade of US$70 billion, of which India’s share is US$972 million. The Italian major corporations have a long presence in India market like Fiat, Benetton, Zucci Textiles and Perfetti Van Melle (Chewing gum). Turkey with per capita income of US$ 729.4 billion has a textiles trade of US$ 34 billion, of which India’s share is US$11 million. The Turkish major corporations like Soktas Tekstil (Textiles), LIMAK (construction) and Barmek (Electrical equipment manufacturer) have a presence in Indian Markets.



The trade delegation will consist of: Mr. Dilip Jiwarajka, Vice-Chairman, Alok Industry (Fabric), Gujarat and Maharashtra; Mr. Rajender Gupta, Chairman, Abhishek Industry (Fabric), Punjab and Madhya Pradesh; Mr. Senthil Kumar, Chairman, BKS Textiles (Fabric), Coimbatore, Tamilnadu, Mr. Prashant Agarwal, Managing Director, BRFL (Fabric to Retail), Maharashtra and Karnataka; Mr. Shishir Jaipuria, Chairman, Ginni Filaments (Technical Textiles), Gujarat and Uttar Pradesh; Mr. Neeraj Saluja, Vice-Chairman, Saluja Group (Spinning, knitting and Garments), Punjab; Mr. Harish Ahuja, Chairman, Shahi Exports (Garments), Haryana, Uttar Pradesh, Karnataka and Tamilnadu; Mr. Nitin Kasliwal, Vice-Chairman, SKNL (Fabric), Gujarat, Madhya Pradesh and Maharashtra; Mr. Sachid Jain, Managing Director, Vardhman (Yarn and Fabric), Punjab, Madhya Pradesh and Himachal Pradesh; Mr. Rajesh Mandawewala, Managing Director, Welspun (Spinning, Hometextiles, Retail), Gujarat and Maharashtra; Mr. Ramaswamy, Chairman, Warsaw (Garments), Tirupur, Tamilnadu; and Mr. A.L. Ramachandran, Chairman, Vijayeswari (Yarn), Tirupur, Tamilnadu, Mr. M.M. Ellango, Chairman, Yuvraj Textiles, Tirupur; Mr. Premal Udani, Chairman, AEPC (Garments), Mr. Vimal Kirti Singh, Director General, AEPC, Mr. A. Sakhtivel, Chairman, FIEO, Mr. V.S. Velayutham, Chairman, TEXPROCIL, Mr. Britto M. Joseph, Chairman, HEPC, Mr. Ganesh Gupta, Chairman, STTEPC.

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