Apparel Online India Magazine May 1-15, 2019 | Page 40

INDUSTRY LIVE APPAREL RESOURCES NEWSLETTERS FACEBOOK FRIENDS To subscribe, send us an email at [email protected] Join more than 10,000 people who are already fans of Apparel Resources on facebook. Search for Apparel Resources at https://www.facebook.com/apparelresources/ TT Ltd.'s two garments units get fully operational; company eyes diversification TT Limited, one of India’s well known vertical integrated companies, is aggressively growing into garment manufacturing. Recently two of its hi-tech world class apparel manufacturing plants got functional. Situated in Avinashi (Tamil Nadu) and Gajroula (Uttar Pradesh), these plants have been installed after modifying existing buildings. Each of the plants have 300 stitching machines. Following the compliance and seeking orders from global markets, both plants are SEDEX and WRAP approved. This would further reinforce the company’s focus on garment production for domestic sales as well as for exports. Both these plants are eligible for Amended Technology Upgradation Funds Scheme (ATUFS) subsidies and State Government incentives presently in force for the apparel industry. During 2017-18, the company had a turnover of Rs. 517.90 crore with garments’ share of around 23% in the total business. It is mainly into innerwear, sportswear and casualwear for all segments. In another development, as per SEBI requirements, the Board of Directors of the company have been reconstituted. Navratan Dugar, Founder Independent Director has resigned as Independent “We have also been exploring on marketing basis various other fields for diversification. The opportunities are being explored in packaged food, agri products, bulk transportation, retail business, e-commerce and dairy products. Depending upon the results of test marketing, consultations and market feedback, the company will pick up new lines to expand its business turnover to develop brand strength and value creation.” – Rikhab Chand Jain, Chairman, TT Ltd. Director of the company because, as per SEBI guidelines, his age had surpassed limit of 75 years and was lately also not keeping good health. VR Mehta has been re-appointed as Independent Director of the company for a period of further 5 years subject to shareholder’s approval in the next AGM, including approval for waiver of the age limit of 75 years. Mehta has exceptionally good administrative experience, serving from time to time as an Independent Director of some of the major Indian companies, such as Tata Motors, Tamil Nadu Newsprint and Paper Limited (TNPL), etc. He was also the Founder MD of Dredging Corporation of India. Ankit Gulgulia, CA has also been inducted as an Independent Director. He is expected to contribute substantial inputs for chalking out the company’s strategy, economic policies and funding growth. Textile exports grow by 1.66%, but apparel shipments drop by 3.42% India’s textiles and apparel exports have not done well in FY 2019. Total textile products’ export grew a mere 1.66% to US $ 35.96 billion as compared to US $ 35.38 billion the previous fiscal, while apparel shipments went down by 3.42%. Meanwhile, in rupee terms, India’s apparel exports recorded Rs. 1,12,715 crore in 2018-19 against Rs. 1,07,679 crore achieved in 2017-18, with a positive growth of 4.7%. As per official data, the export 40 Apparel Online India | of textiles grew 6.19% to US $ 19.83 billion during the fiscal under review as compared to US $ 18.67 billion a year ago and that of apparels declined sharply by 3.40% to US $ 16.13 billion during the fiscal 2019 as against US $ 16.70 billion in the previous financial year. Among textile products, cotton yarn, fabrics, made-ups, handloom products continued to be the largest export earner with a growth of 9.22% during the fiscal 2019 to MAY 1-15, 2019 | www.apparelresources.com US $ 11.20 billion. The decline in the country’s apparel exports in FY ’19 was primarily driven by a sharp decline witnessed in shipments to the United Arab Emirates (UAE) from July 2017 onwards after the introduction of GST and reduction of duty drawback rates in October last year. The next big segment under the category is carpet, which saw a growth of 3.63% to US $ 1.48 billion as compared to US $ 1.42 billion in fiscal 2018, with exports de-growing till September. But from October onwards, it showed a recovery against the low base of the same months in the previous fiscal. This low base helped exports grow in the month of March by 15.13%. However, compared to FY ’17’s exports of US $ 17.4 billion, FY ’19’s export of US $ 16.1 billion is still 7.47% lower. According to A. Sakthivel, Vice-Chairman, Apparel Export Promotion Council (AEPC), “Under the GST, there was almost