Apparel July 2019 Apparel July 2019 issue | Page 78

MARKET WATCH
CMAI Felicitates Hon’ble
Union Minister of Textiles,
Smt. Smriti Z Irani, in
New Delhi
Mr Rahul Mehta, President, CMAI, felicitated
Smt. Smriti Zubin Irani upon once again taking
charge as the Honourable Minister of Textiles, in
addition to heading the Ministry of Women and
Child Development, on June 13, 2019, in
New Delhi.
Along with Mr Mehta are Mr Mohan Sadhwani,
Executive Director, and Mr J K Arora, Senior
Director, Northern Regional Office, CMAI.
Shree, women’s ethnic
and casual wear brand, to
expand operations
Women’s ethnic and casual wear label, Shree,
plans to expand its operations beyond its existing
markets, especially in South India. Mumbai-based
private investment firm Alpha Capital has invested
R80 crore ($11.5 million) in the brand, which will be
used for this expansion.
Established in 2009, SHR Lifestyle primarily
operates through its stores in North India, with
a few outlets in Madhya Pradesh, Rajasthan,
Gujarat, and Maharashtra. It also sells online.
This is the second known deal for Alpha Capital
in 2019, after the company reinvested in existing
portfolio company InCred.
Union Budget 2019–2020: A
Mixed Bag for the Textile and
Apparel Industries
The Clothing Manufacturers Association of India (CMAI) stated that
the Union Budget 2019–20 announced by the Hon’ble Finance
Minister, Smt. Nirmala Sitharaman, is a mixed bag for the Textile and
Apparel Industries.
Giving his reaction on the Budget, Mr Rahul Mehta, President,
CMAI, stated that the extension of Lower Rate of 25 per cent
Corporate Tax with an Annual turnover of up to R400 Crore is a
Welcome step. Currently, this Rate is only applicable to Companies
having an Annual turnover of up to R250 Crore. He added that the
infusion of R70,000 Crore Capital into Public Sector Banks will ease
the Current Credit Squeeze. Also, R350 Crore allocated for 2 per
cent Interest Subvention for all GST-registered MSMEs on Fresh or
Incremental Loans will give a big thrust to MSMEs. Considering that
Over 80 per cent of the Domestic Apparel Industry is in the MSME
Sector, all these measures could provide a boost to the Sector.
On the other hand, Mr Mehta stated that while details have
not been announced, the relaxing of local sourcing norms for FDI
in Single Brand Retail can be detrimental to the Growth of the
Domestic Apparel Manufacturing Industry. He felt that this move
could work against the Government’s drive towards Make in India.
This will, however, Encourage FDI in Retail.
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