Apparel Online India Magazine August 2nd Issue 2018 | Page 42
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Positivity back in the market!
I
rrespective of apparel export data
which is showing India’s downfall
and some of the big companies
passing through a difficult phase, it
seems that positivity is coming back
to the textile and apparel industry
and that too from export as well as
domestic market perspective. Team
Apparel Online recently met many
companies of textile and apparel
trade from different product
segments and scale of operations
across the country. Many of them
shared their expansion plans and
accepted that there is a positivity
in the sentiments. Among them
are fabric producers, apparel
manufacturers, trims, ink and
chemical suppliers etc. Some of the
companies that are not currently
enhancing their capacities are
diversifying into the overseas
markets, entering from export to
domestic or vice versa, adding new
buyers in their existing markets…
To mention a few names from
Gujarat, which have already done
expansions or are in the process,
are Chiripal Group (Vishal Fabrics
Limited with a capacity of 80
million metres per annum) and
Splenora Textures, which are
now coming with huge denim
Few public limited
companies have
performed well like
Page Industries
which reported
a better-than-
expected 46 per
cent year-on-year
growth in net profit
at Rs. 1,244 million
in Q1, FY’19.
Industry is exploring new technologies and is geared up for investment
fabric manufacturing facilities.
In Bangalore, leading kidswear
manufacturers such as First Steps
Babywear and liaison office such
as Stars Design are geared up for
growth. Even in Ludhiana, garment
manufacturers like Million Exports,
KG Exports, Bawa Knit Fab have
announced investment plans. In
Delhi-NCR, Noida Apparel Export
Cluster is enthusiastic about its
upcoming apparel park and claims
that it will increase and ease
garment manufacturing and export
in Noida.
Among the leading chemicals
manufacturing companies,
Zydex Industries that has strong
presence in the textile industry is
coming up with patented technique
‘Epricon’. It is also expanding its
focus on Bangladesh and Vietnam.
Similarly, Lakshmi Bio Chem,
one of the leading ink suppliers,
associated with the Global Inc
(leading textile printing ink
producer), is now focusing more on
Bangladesh. In the medium level,
trims manufacturing companies
like MS Labels and Dynamic Dost
(both from Tirupur) are on the
growth track. Having good buyers’
nomination and producing large
variety of labels, MS Labels will
start manufacturing of buttons,
zippers and hangers. Dynamic
Dost offers variety of accessories
and last year, it started a zipper
factory and is now expanding
capacity in the same. There are
many more such small, medium-
level companies that have invested
in automation, and are enhancing
their variety of existing product
categories.
With loss of Rs. 154 crore, NCLT admits insolvency
petition against Provogue
I
nsolvency petition against
apparel brand Provogue which
posted a loss of Rs. 154 crore in
2017-18, has been admitted by
the Mumbai bench of the National
Company Law Tribunal. Media
reports claims that after Reid
& Taylor India Ltd, Mandhana
Industries and Alok Industries
Ltd (already in various stages of
insolvency resolution), it is the
fourth such company from the
textile segment to attempt loan
resolution in bankruptcy courts.
With own garment manufacturing
facilities in Daman and in Baddi,
42 Apparel Online India | AUGUST 16-31, 2018 | www.apparelresources.com
launched in 1998, Provogue was
primarily a menswear fashion
brand and once it had 350 stores
in 73 cities. Later it expanded into
womenswear and in accessories too.
Andhra Bank filed the insolvency
petition against Provogue as it has
claimed dues of Rs. 90 crore while
its total debt to all lenders adds
up to Rs. 228 crore. Nikhil and
Akhil Chaturvedi, promoters of the
brand, lost control of the company
in 2016 after a group of lenders led
by Andhra Bank acquired 51 per
cent in the company, exchanging
debt for equity.