Publishers: Parvathi TVR Chandran Publications …textileindia.net/magazinepdf/73TIP August 2017 for...

Textile-Apparels-Fashions-Textile Machinery-Dyestuffs & Chemicals

Publishers: Parvathi TVR Chandran Publications August 2017 www.textileindia.net

Transforming India’s Textile & Apparel Industry

Rieter’s Latest Generation Textile Spinning Solutions

R 36 Rotor Spinning Machine RSB-D 50 Draw Frame

A 12 Unifloc Automatic Bale Opening Machine

Textile India

Publishers: Parvathi TVR Chandran Publications

Textiles - Apparel - Fashion - Synthetic Fibres & Filament Yarns - Textile Machinery & Technologies - Accessories & Components - Dyestuffs & Chemicals

Progress

Mr. TVR Chandran & Mrs. Parvathi TVR Chandran

Textile India Progress Mission To Attain $350 Billion Textile And Apparel Output By 2025

Website: www.textileindia.net

Transforming India’s Textile& Apparel Industry

We have submitted Memorandum to Finance Minister, Cabinet Ministers and Secretaries of Government of India, recommending policy measures

Textile-Apparels-Fashions-Textile Machinery-Dyestuffs & Chemicals

Publishers: Parvathi TVR Chandran Publications February 2017 www.textileindia.net


Manmade Fibres excise duty rationalisation necessary

Mr Santosh Kumar GangwarMinister of State for Finance

Government of India

Government needs to introduce major reforms to convert challenges into opportunities

Union Budget 2017-2018Indian Textile and Apparel Industry

Textile India Progress is India’s largest circulated and widely read textile journal, amongst Government circles and Industry. Our journal’s daily internet viewership is 10,000 annual internet viewership 3.6 million. The printed copies are 1,000 per issue. Our journal has no subscription fees and could be viewed free of cost at our website www.textileindia.net.Textile India Progress is India’s reputed bi-monthly published every year in months of Jan, Feb, April, June, Aug, Oct, Dec. We invite your Suggestions and Ideas for rapid growth of Indian textile industry. Your Suggestions and Ideas may be sent in writing on your letterhead to the Editorial Board, Textile India Progress, Patil Building, Flat No. 19, 1st Floor, Plot No. 38, Sion (West), Behind Guru Krupa Restaurant, Mumbai-400 022, Maharashtra, India, or forwarded our email at [email protected].

We are serving the Indian textile industry by working with Government of India and Industry Leaders to attain textile and apparel output of USS350 billion annually and create 35 million jobs by 2025, as per the Vision Document of Government of India, Ministry of Textiles, as against the current textile and apparel output of US$140 billion annually. We contribute our Innovative Ideas to Government of India periodically for implementation as Government’s policies to attain the target of the Vision Document of Government of India, Ministry of Textiles.

Textile IndiaProgress

Editor – Publisher: Viswanath Chandran VichaManaging Editor: Raju Chandran

Printed At: Supressa Graphics Pvt. Ltd.

Published by Viswanath Chandran Vicha for and on behalf of Parvathi TVR Chandran Publications at ‘‘Asheerwad’’ Ground Floor, 3/49 Sion, Road No. 2, Scheme No. 6, Sion East, Mumbai-400 022 and printed by him at M/s Supressa Graphics Pvt. Ltd., 258/259, A to Z Industrial Estate, Ganpatrao Kadam Marg, Lower Parel, Mumbai-400 013, Maharashtra.

Editor: Viswanath Chandran Vicha

Managing Editor: Raju Chandran

Textile India Progress is Registered with Registrar of Newspapers, Government of India, New Delhi, under Registration No 43692/82.

Publishers:Parvathi TVR Chandran Publications

In Memory OfMr. TVR Chandran & Mrs. Parvathi TVR Chandran



Registered Office:

Textile India Progress‘‘Asheervad’’ Ground Floor, 3/49 Sion,

Road No. 2, Scheme No. 6, East,Mumbai-400 022, India.

Tel: 91-22-24097782, 24097185, 24077883Email: [email protected]

Mr Raju Chandran, Managing Editor, Textile India Progress, Adviser to Indian textile and apparel industry and a textile expert, has offered His Honorary Services to His Excellency, Mr Narendra Modi, Prime Minister of India, to work for the country, by contributing his intellectual and innovative ideas, for rapid growth of Indian textile and apparel industry. Mr Raju Chandran, was invited by Hon’ble Mr Santosh Kumar Gangwar, Minister of State for Finance, when he was Hon’ble Minister of Textiles (Independent Charge) in January, 2015. After the Minister’s two hour meeting with Mr Raju Chandran, Government of India has implemented numerous policy measures in the last two and a half years, which has helped the growth of textile industry.Mr Raju Chandran also received written communications from His Excellency, Mr Narendra Modi, Prime Minister of India’s Office, listing out the policy measures those were enunciated. Mr Raju Chandran would like to give his entire expertise and innovative ideas, for meeting Prime Minister’s Vision of attaining a textile and apparel output of US$350 billion and creating 35 million jobs by 2025. Textile India Progress has been periodically inter-acting with various Ministries of Government of India, offering pragmatic suggestions for growth of Indian textile and apparel industry.

Mr Raju Chandran has appealed to Government of India, to implement his 8-point recommendations for rapid growth of Indian textile and apparel industry. In a communication to Honourable Prime Minister, Cabinet Ministers and Secretaries of Government of India, he has highlighted how India is losing out its textile opportunity to other countries and what Government of India should do to overcome currently challenges.

Textile India Progress profiles Reliance Industries Ltd, which has recorded strong quarterly performance.Commenting on the results, Mukesh D. Ambani, Chairman and Managing Director, Reliance Industries Ltd said “Our company recorded yet another strong quarterly performance with net profit of Rs 9,108 crore up 28%.Our industry leading portfolio of assets in the refining and petrochemicals business contributed to considerable improvement in our earnings for the quarter”.

Rieter Machine Works Ltd offers Indian textile industry complete spinning solutions. Rieter is the world’s leading supplier of systems for short-staple fiber spinning. Based in Winterthur, Switzerland, the company develops and manufactures machinery, systems and components used to convert natural and manmade fibers and their blends into yarns. Rieter is the only supplier worldwide to cover spinning preparation processes as well as all the four end spinning technologies currently established in the market. With 18 manufacturing locations in ten countries, Rieter employs a global workforce of some 5,320, about 20% of whom are based in Switzerland.Textile India Proress profiles Rieter’s latest generation spinning machineries R36 Semi-Automated Rotor Spinning Machine, RSB Draw Frame and A 12 Unifloc Automatic Bale Opening Machine. On performance front, Rieter machines demand picked up in the first half of calendar year 2017.

Lakshmi Machine Works Ltd offers entire spinning spinning solutions for the Indian textile industry. Textile India Progress profiles LMW’s Suction Compact System machine in this issue.History stands as a documented proof of LMW’s success reflecting phenomenal growth through technologically advanced products. LMW has proven this over five decades through its product innovation and is consistently demonstrating this technological advancement in various spinning machineries, periodically introduced by the company.

Viswanath Chandran Vicha


August 2017 1

Letter From Publisher




Committed to Values And ExcellenceTextile India Progress Mission For

Transforming India’s Textile and Apparel Industry to Attain $350 Billion Textile Output by 2025Textile India Progress is a journal dedicated to the overall cause of textile industry, including standalone spinning mills, integrated textile mills, powerloom and handloom sectors. The journal is pub-lished bimonthly every two months in February, April, June, August, October and December every year. The journal’s objective is to espouse the cause of Indian Textile and Apparel Industry. Senior Editors of the journal have mutual exchange of views and ideas with Textile Leaders and Government of India, with a view to fructifying the National Textile Vision document and National Textile Policy, which has set the target for Indian Textile and Apparel Industry to increase from current output of $110 billion to $350 billion output by 2025 (domestic $200 billion and export $150 billion).With this ambitious target, textile industry can alter the job scenario and manufacturing landscape, thereby fulfilling Honourable Prime Minister’s Vision to put textile segment as part of “Make in India” program. It is possible to attain this ambitious target, however dif-ficult to implement many of the innovative ideas. These innovative ideas can be successfully implemented with the co-operation of In-dustry, Government of India and Consumers. Traditional millowners need to change their mindset of running only spinning units and they must install processing plants, going for forward integration in processed fabrics and finally to garment production.India is currently exporting cotton yarn, spun yarn and polyester filament yarn together for $7 billion. If India exports processed fab-rics, the value addition of this cotton yarn, will be an additional five times of this value at $35 billion. If India exports garments, the value addition of this yarn will be ten times of the value of cotton yarn at $70 billion.Textile India Progress is committed to Values and Excellence. Se-nior Editors of the journal are committed in their Mission to work with Government of India, Industry and Consumers. Mr Raju Chandran, Managing Editor, Textile India Progress was invited by Government of India, Minister of State for Textiles (Independent Charge), to a detailed discussion on what should be done to attain $350 billion textile output by 2025. The textile expert suggested that we must have a thrust on Value Addition from cotton yarn to garments and from synthetic fibres and filament yarns to garments. This will in-crease the current output by 10 times. Mr Raju Chandran told the Minister that as against our current export of $7 billion worth cotton yarn, India can export for a value of $70 billion annually, if these cotton yarn and synthetic fibres and filament yarns are converted into garments. Hence, he has recommended the immediate setting up of Integrated Textile Parks, near the Sea Coast. In case of stand-alone spinning units, Mr Raju Chandran suggested that Govern-ment of India, must extend them facilities to expand into processing and weaving facilities, so that these units, become viable and are able to make profits. Textile India Progress has offered to share its Knowledge with Government of India, Industry Leaders, Consum-ers, with the objective of rebuilding Indian Textile Economy, which is currently facing severe crisis.

The Editor is in no way responsible for the views expressed by the Authors and for the authencity of write-ups of products published in this issue. The articles, news items, editorials published in this Issue are meant for information purposes only and thus cannot be considered as soliciting and offer for sale or purchase of textiles, textile machineries, dyestuffs and chemicals or any other products. No material should be reproduced without the written consent of the Editor.

CONTENTS

2 August 2017

Editorial

Foreign Trade Policy and GST.................................................................................3Mr Narendra Modi, Prime Minister of India, to attain US$350 billion textile and apparel output and create 35 million jobs by 2025 ...........................................5Submits Memorandum to Honourable Prime Minister for Pragmatic Textile Policies .....................................................................................................................5Lenzing Invests in Thailand .....................................................................................6

Cover Feature

Rieter Offers Indian Textile Industry .......................................................................7The New R 36: The Longest Semi-Automated Rotor Spinning Machine on the Market ................................................................................................................7RSB-D 50 Draw Frame – A New Dimension in Productivity, Quality and Operation ................................................................................................................10A 12 UNIfloc – The Art of Modern Automatic Bale Opening ...............................13Rieter Demand Picks up in first half of 2017 ................................................... 15-17

Special Feature

Reliance Industries Ltd recorded strong quarterly performance ............................18Refining & Marketing Business .............................................................................20Petrochemicals Business ........................................................................................21Organized Retail ....................................................................................................21Media Business ......................................................................................................22VDMA puts together a series of multimedia reports on its 125th anniversary ......22Trützschler T-BLEND Means Guaranteed Blending Accuracy .............................23Lakshmi Suction Compact Spinning System ................................................... 25-28Italian Textile Machinery Industry Faces New Challenges Industry 4.0 ......... 29-33In-house show of superlatives to mark Karl Mayer’s 80th Anniversary ......... 34-35RECYCLED INDIGO YARNS | by UNITIN ........................................................3556th DORNBIRN MAN-MADE FIBERS CONGRESS (DORNBIRN-MFC) ........................................................................................ 36-38

Special Feature

Uster Celebrates 60th Anniversary – Remarkable Increases in Quality Expectations Worldwide .................................................................................. 39-402017 Apex Award Presented to AATCC for Feature Article in AATCC Review ...................................................................................................................41Functional Textile & Clothing Conference ............................................................41A New Wardrobe for her: Spykar at 65th CMAI National Garment Fair ..............42Textile and Clothing Industry Issues regarding Foreign Trade Policy (FTP 2015-20) in post GST Regime ................................................................ 43-50GST: Frequently Asked Questions (FAQs) for Textiles ................................... 51-54



August 2017 3

The influence of the FTP schemes under GST will reduce considerably. As a result $400bn of India’s forex earn-ings including goods and services will be impacted. The schemes like EOU, Soft-ware Technology Parks of India (STPI), EPCG scheme. Merchandise Exports from India and Services Exports from In-dia scheme will be impacted. The earn-ings from the services exports valued to $150bn, and is highly relied on STPI and FTP. The changes in benefits and admin-istration of the EOU and STPI will raise doubts on the feasibility and relevance of the EOU and STPI operating structures. There are 4,000 such units.

With the implementation of IGST, the government has to work on the 4000 units to weigh the benefit of a basic cus-tom duty (BCD) exemption on imported goods that EOU/STP structure would of-fer on a going forward basis against ad-ditional compliance and oversight.

The inter unit transfer of goods will at-tract IGST and reversal of BCD, will limit the exemption of BCD to the direct im-porter and will not flow down the supply chain. The EOU and STP units have to follow the procedure outlined under the Customs Import of Goods at Conces-sional Rate of Duty Rules, 2017 instead of import under customs bond, etc. Fur-ther, the units will have to reverse the BCD amount in case of DTA clearance of the goods as per the Standard Input Output norms. These changes are very sharp and the impact would cut across the industry segments. However, it is quite certain the changes pertaining to EOU and STP structure will shrink in its relevance and will be relevant for very limited number of business cases. Still to be seen how the GST related changes in FTP would push the business out of EOU and STP units.

Foreign Trade Policy and GSTIndia’s US$400 Billion foreign exchange earnings may be impacted

India’s foreign exchange earnings, which are about US$400 billion could be impacted because of the introduction of GST. There are many schemes, such as EOU, Software Technology Parks of India, EPCG Schemes and so on. Mr. Kailash R. Lalpuria, a textile expert and a veteran in Indian textile and apparel industry, currently Executive Director of Indo Count Industries Ltd. a Rs. 2,300 crore textile company, has explained the implications of FTP and GST. Mr. Lalpuria has had a successful stint with Welspun India Ltd. and Bombay Dyeing and Weaving Mfg. Co. Ltd. before joining Indo Count Industries Ltd. Mr. Lalpuria believes that it is necessary for Government of India, to ponder over the present GST and make suitable modifications, for consistently sustaining and increasing India’s export earnings.

Comprehensive customs duty ex-emption on export linked imports, a cor-nerstone of the export incentive schemes under the FTP, is being replaced by reduced exemptions, limited to basic custom duty exemptions only. Thus, the amount required to fund IGST duty pay-ment increases many times.

Reduction of influence of FTP schemes under GST will also reduce the footprint of the DGFT with regards to India’s international trade. As the con-sequences of the makeover of FTP un-der GST, Indian exporters-importers will see less applicability of DGFT and rely on more of open market forces on the path of international trade. The govern-ment is in lurch as the continuation of IGST exemptions would be in contrary to the GST policy of minimal exemptions and detrimental to the domestic indus-try where any IGST exemption favours sourcing from outside India.

The changes in the import-export

supply chain will trigger the additional cash flow requirement at the procure-ment stage and would alter the sourc-ing preferences. Balance of favour will shift away from imports and in favour of domestic procurement. Consequently, the supply chain will witness a drastic change under GST in terms of choice of supplier, country of supply, procurement price and product mix – domestic and imported – in the procurement basket. We expect the export obligation period in the EPCG scheme to change as also the agency monitoring the export obligations under the export incentive schemes.

Despite absence of IGST exemptions is in the interest of the economy as a whole, but it adversely impacts the ex-porters as additional capital is required to fund the IGST payment on procure-ment for the purposes of export. Some of the key functions and areas of influ-ence of the FTP are shrinking, e.g. the IEC number is replaced by PAN; it is likely that number of application seeking licenses will reduce; advanced release order (ARO) under advanced authorisa-tion and Export Promotion Capital goods (EPCG) scheme will become irrelevant.

The exporting community is not happy with the recent development under IGST. The government is working on the same and hence, FTP aligned to GST has been shifted to September 2017. The change will lead to no exemption in the export related imports and local procurements under IGST, will result in a steep decline of duty benefits under FTP.

In nutshell, under the new GST, the exporting community will receive less fi-nancial incentives and less dependence on FTP schemes. In addition, the com-munity has to work on the quality and brand acceptability in the international market.

Mr. Kailash R. Lalpuria - Executive Director, Indo Count Industries Ltd

Designed to spinfancy yarns.And engineered to make profits.

This advanced new-age ringframe comes

with superlative features to create

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latest automation features, it is proof of

LMW’s commitment to innovation and the

constant creation of higher benchmarks

in quality and standards.

Powerful Features Include: • FLEXI Servo Drive with no Change Gears• Low Decibel Silent Spindles • Innovative Energy Saving Features • Comes with Compact Spinning System • Smart Autodoffing Mechanism • Individual Yarn Breakage Monitoring & Roving Stop Motion System • Compatible to Spinconnect, a web-based monitoring and control application

Presenting the LMW SMART Ringframe LR9/SX. Created for Industry 4.0 standards.

28 x 21 cms

Mr Raju Chandran - Managing Editor

Mr Raju Chandran, Managing Edi-tor, Textile India Progress, Adviser to Indian textile and apparel industry and a textile expert, has offered His Honor-ary Services to His Excellency, Mr Nar-endra Modi, Prime Minister of India, to work for the country, by contributing his intellectual and innovative ideas, for rapid growth of Indian textile and apparel industry. Mr Raju Chandran, was invited by Hon’ble Mr Santosh Kumar Gangwar, Minister of State for Finance, when he was Hon’ble Minis-ter of Textiles (Independent Charge) in January, 2015. After the Minister’s two hour meeting with Mr Raju Chandran, Government of India has implemented numerous policy measures in the last two and a half years, which has helped the growth of textile industry. Mr Raju Chandran also received written com-munications from His Excellency, Mr Narendra Modi, Prime Minister of In-dia’s Office, listing out the policy mea-sures those were enunciated. Mr Raju Chandran would like to give his entire expertise and innovative ideas, for meeting Prime Minister’s Vision of at-taining a textile and apparel output of US$350 billion and creating 35 million jobs by 2025. Textile India Progress has been periodically inter-acting with various Ministries of Government of India, offering pragmatic suggestions for growth of Indian textile and apparel industry.

Mr Raju Chandran has appealed to Government of India, to implement his 8-point recommendations for rapid growth of Indian textile and apparel industry. In a communication to Hon-ourable Prime Minister, Cabinet Min-isters and Secretaries of Government of India, he has highlighted how India is losing out its textile opportunity to other countries and what Government of India should do to overcome cur-rently challenges.

In his communication dated Mon-day, 24 July, 2017, to Honourable Prime Minister of India, Cabinet Minis-ters and Secretaries of Government of

India, Mr Raju Chandran said that we need to focus more on textile sector for rapid growth of Indian economy. He said that “appreciating currency, lower interest rates, good incentives to textile industry, has not encour-aged investments in textile industry”. Large-scale imports of fabrics from China, high GST duties on textiles all need a re-look, for growth of textile in-dustry. Mr Raju Chandran in his com-munication appealed to Government of India, to consider favourably his 8-point recommendations and enun-ciate them as Government policies for encouraging growth of textile sector. Mr Raju Chandran also suggested a Strategic Five Year Policy, for textile sector, with a view to attaining the target of US$350 billion textile and apparel output and create 35 million jobs by 2025. The 8-point recommen-dations made by Textile India Prog-ress are as follows:1. Maintain the existing duty draw-

back rates on exports of textile products for a period of five years, till 31.03.2023, with full accumulat-ed input GST Tax credit on exports so that the targets announced by Government of India, for exports of textile products can be achieved. Following suggestions are also on similar lines.

2. To expedite conclusion of FTA’s with all the potential importing countries especially EU, Britain, China, USA, Canada, etc, to enable Indian textile and apparel industry, to overcome competition with the countries such as Vietnam, Ban-gladesh, Pakistan and many more countries.

3. Maintain the existing rate of rebate of State Levies (RoSL) for garment and made-up sector, for five years till 31.03.2023, as the investments in these sectors, as originally envisaged, while launching the scheme for garments and made-ups.

August 2017 5

4. Issue clarification on incremental exports incentivisation scheme (IEIS) to be made applicable for an-nually for the period 01.03.2013 to 31.03.2014.

5. Retain rates of MEIS Scrips for payment of IGST on imports - MEIS was introduced to offset infrastructural inefficiencies and the associated costs of exporting products produced in India giving special emphasis on those which are India’s export interest and have the capability to generate employ-ment and enhance India’s export competitiveness in the world mar-kets.

6. Utilisation of MEIS Scrips for pay-ment of IGST on imports.

7. Utilisation of Advance authorisa-tion and export performance cer-tificate for payment of IGST on im-ports.

8. To refund GST on textile machin-ery used for the manufacture for exports of goods to neutralise the negative impact of GST on textile machinery.

EDITORIAL


Raju Chandran offers Honorary Services to His Excellency, Mr Narendra Modi, Prime Minister of India, to work for the country, by contributing his intellectual and

innovative ideas for rapid growth of Indian textile and apparel industry


The Lenzing Group aims to sub-stantially increase its share of specialty fibers as a proportion of total revenue. Following the expansion drive already underway in Lenzing and Heiligenkreuz (both in Austria), Grimsby (Great Britain) and Mobile, Alabama (USA), the Super-visory Board of Lenzing AG approved the proposal of the Management Board to build the next state-of-the-art facil-ity to produce lyocell fibers in Thailand. For this purpose, Lenzing is establishing a subsidiary in Thailand and purchasing a commercial property in Industrial Park 304 located in Prachinburi near Bang-kok. In the coming months, the required permits and licenses as well as techni-cal planning will be finalized. A definitive decision on constructing the new produc-tion plant will be made in the first quarter of 2018. Completion is scheduled for the end of 2020.

The selection of Industrial Park 304 in Prachinburi was based on its excellent

overall infrastructure, outstanding expan-sion opportunities and the sustainable biogenic energy supply. Similar to the plant in Mobile, the planned production facility will be constructed on the basis of the latest state-of-the-art technology and feature a capacity of up to 100,000 tons annually. This site will strengthen the worldwide lyocell network of the Lenzing Group and enable its global customers to source TENCEL® branded fibers from Europe, North America and Asia.

“The planned expansion underscores our commitment to support the business growth of our customers, which will result in their offering even more environmen-tally friendly products by using TENCEL® fibers, the world’s most sustainable bo-tanic fibers”, says Lenzing CEO Stefan Doboczky. “The expansion to Thailand represents the next consistent step in the implementation of ours Core TEN strate-gy as a means of increasing the share of specialty fibers and expanding our geo-graphical footprint. With Asia accounting for 70 percent of total Lenzing Group rev-enue, it is logical that we will construct the next production plant for TENCEL® fibers in Asia,” Doboczky adds.

For more information, please contact:

Waltraud KasererVice President Corporate Communications & Investor RelationsPhone: +43 (0) 7672 701-2713E-mail: [email protected]

Lenzing Invests in ThailandThe Lenzing Group is a world market leader headquartered in Austria, which operates production sites in all major markets as well as a worldwide network of sales and marketing offices. Lenzing supplies the global textile and nonwovens industry with high-quality, botanic cellulose fibers. Its portfolio ranges from dissolving wood pulp to standard and specialty cellulose fibers. Lenzing’s quality and innovative strength set global standards for cellulose fibers. With 79 years of experience in fiber production, the Lenzing Group is the only company in the world which is able to produce significant volumes of all three cellulose fiber generations – from the classic Lenzing Viscose® branded fibers to the Lenzing Modal® branded fibers and the TENCEL® branded lyocell fibers. In 2016 Lenzing introduced the RefibraTM branded lyocell fibers, a product innovation based on recycled cotton scraps. The Lenzing Group’s success is based on consistent customer orientation combined with innovation, technology and quality leadership. Lenzing is committed to the principles of sustainable management with very high environmental standards and can underscore this commitment with numerous international sustainability certifications for its business processes as the most sustainable company in the sector. In addition to fibers, which form the core business, the Lenzing Group is also active to a lesser extent in the fields of engineering and plant construction.Key Facts & Figures Lenzing Group 2016Revenue: EUR 2.13 bnFiber sales volumes: 978,000 tonsEmployees: 6,218TENCEL®, RefibraTM, Lenzing Modal® and Lenzing Viscose® are trademarks of Lenzing AG.

Lenzing plans construction of a state-of-the-art lyocell fiber production plant in Prachinburi (Thailand) by the end of 2020

Decision to establish a subsidiary and purchase property in Industrial Park 304

Next steps: finalizing of approvals and technical planning

6 August 2017


Cover Feature

August 2017 7

The R 36 with the new S 36 spin box is a smart tool which enables users to reach excellent productivity in line with high yarn quality from a wide range of raw materials. The new optional function Automated Spinning-In (ASI) allows higher machine productivity due to rapid spinning start-up after a machine stop.

The new semi-automated R 36 rotor spinning machine with 600 spinning positions is already suc-cessfully running in the field (Fig. 1). The R 36 is a smart and economical solution for produc-

ing high quality yarns from Ne 2 to Ne 40 with state-of-the-art technology. With up to 600 spinning positions and maximum 200 m/min delivery speed, it stands for better yarn quality and higher productivity compared to its predecessor. The improved AMIspin and the new AMIspin-Pro technology secure excellent piecing qual-ity. The optional AMIspin-Pro with new ASI function simpli-fies piecing and allows a rapid start-up of the machine after a power interruption by just pressing a button.

The New R 36: The Longest Semi-Automated Rotor Spinning Machine on the Market

Fig. 1 After first installations of the R 36, including the longest machine with 600 rotors, repeat orders were placed immediately.

Rieter Offers Indian Textile Industry

Rieter Machine Works Ltd, Switzerland has successfully exported to India its complete spinning solutions, for producing quality yarn, acceptable to the world textile industry. Indian textile industry is on the threshold of a major modernisation drive and Rieter Spinning Solutions would be immensely useful for the Indian textile industry. Rieter Spinning Solutions offers the entire Spinning Solution under one roof. Textile India Progress profiles Rieter Spinning Solutions products, for the benefit of Indian textile industry Rieter Spinning Systems The New R 36: The Longest Semi-Automated Rotor Spinning Machine, RSB-D 50 Draw Frame – A New Dimension in Productivity, Quality and Operation and A 12 Unifloc – TheArt of Modern Automatic Bale OpeningThe New R 36 Longest Semi-Automated Rotor Spinning Machine, enables users to reach excellent productivity in line with the high yarn quality from a wide range of raw materials. The new single-head RSB-D 50 Draw Frame generation is characterized by its performance: productivity increase of up to 33%, reduced energy costs, quicker lot change at outstanding sliver quality and easy, intuitive operation. A 12 UNIfloc Automatic Bale Opening Machine is an extremely robust and stable new development with a previously unrealized machine concept. The machine has been newly designed from scratch and offers the customer high productivity, flexibility and easy handling.

The New R 36 Longest Semi-Automated Rotor Spinning Machine – RSB-D 50 Draw Frame and A 12 UNIfloc Automatic Bale Opening Machine


8 August 2017

Highest productivity in its classThe longest 600 spinning unit semi-automated rotor machine provides maximum productivity in combination with modern, very energy efficient drives and fre-quency converters. Thanks to the latest spinning technology with the S 36 spin box and the resulting perfect spinning stability, a rotor speed of 120 000 rpm can easily be applied. The delivery speed of 200 m/min for full machine length is supported by electronically con-trolled yarn traverses.

Reduced energy consumptionIn addition to innovations in spin-ning and piecing technology, latest technology of motor manufacturers for energy saving was applied to up-date the drive concept. Compared to older machine models, the more energy efficient main drives reduce the energy consumption per kg of yarn by up to 10 %.

Benefits for all applicationsThe R 36 achieves high productiv-ity, lower energy consumption and good quality with all rotor yarn applications. Customers addition-ally profit from the following ad-vantages:

Quality Spinning-In (QSI) allows a rapid start-up after power failure with 100 % AMIspin piec-ing quality, and that with all applications. The yarn ends to be pieced can be optimally prepared during the machine downtime. This standard func-tion offers additional power saving during the machine start-up.

Even at maximum speed, per-fect package quality during

piecing is guaranteed. To this end, the R 36 is equipped with an electronically regulated loop compensator that takes up the surplus feed yarn at the moment of piecing.

Machine operation is made easy and intuitive by the graphic touch screen. Graphic visual-ization helps with setting the quality channels for the proven Q 10 quality sensor.

Better evenness and increased yarn strengthThanks to improved spinning tech-nology the new S 36 spin box is able to handle an extraordinarily wide range of materials and yarn counts from Ne 2 to Ne 40. The economic advantage of the semi-automated rotor spinning technol-ogy is intensified by greater flex-ibility in terms of raw material selection.

The S 36 spin box ensures opti-mized fiber flow to the newly de-signed rotors (Fig. 2). In doing so, sensitive fiber opening is retained which leads to excellent raw ma-terial yield and brings benefits in yarn quality and spinning stability. The gentle opening and the inno-vative fiber guidance are the basis for fewer yarn imperfections, in-

creased yarn strength and perfect evenness (Fig. 3).

The raw materials to be processed range from high quality raw fibers and man-made fibers to blends from waste and regenerated fi-bers. The R 36 is the most efficient answer to the current market re-quirements – spinning of cotton, waste materials, viscose, polyes-ter, and recycled fibers and their blends. Special applications, like wool, linen and linen blends, are also fully covered.

Excellent and easy piecing with AMIspinAMIspin continues to ensure op-timal piecing at consistently high quality. The individual motor for sliver feed ensures that only un-damaged fibers are used for piec-ings. For feeding optimal fiber mass, the controls profit from Rieter knowhow of the fully auto-matic machine.

Fig. 2 The modernized S 36 spin box ensures higher yarn strength and fewer imperfections.

Fig. 3 The higher yarn strength and the lower imperfections confirm the improved technology of the R 36.


The operators have long since en-joyed the simplicity of the AMIspin piecing process, thanks to which the spinning positions can contin-ue to create excellent yarn piec-ings in the shortest time possible.

Even easier and more uniform piecing with AMIspin-ProAs a new option, the R 36 is avail-able with the AMIspin-Pro function using a single delivery drive for the take-off (Fig. 4). AMIspin-Pro adds a further AMIspin advantage by means of more precise, intelligent controlling of the piecing process. This provides more uniform piec-ing strength. The manual handling of the yarn for piecing became even easier with this option, in-creasing the success rate.

The new option AMIspin-Pro in-cludes the new function ASI (Au-tomated Spinning-In). This allows a rapid machine restart after a power failure. A simple push of a button is enough to get the ma-chine up and running again.

Renowned, successful machine conceptIn addition to the innovations men-tioned, all the known outstanding advantages of the Rieter concept for semi-automated rotor spinning machines have been adopted by the R 36:

Low machine height and er-gonomic accessibility for easy and time saving machine op-eration.

Full flexibility with totally in-dependent machine sides.

Yarn quality control using the modern Q 10 sensor concept.

This secures the outstanding po-

sition of the R 36 with its well-known sturdy machine concept for easiest and cost saving operation and maintenance.

Initial reactions from the fieldThe first R 36 machines are already operating in various spinning mills. The feedback given by these spin-ning mills in India, China and other Asian countries, as well in Europe and America, is very positive:

Yarns from waste and recycled fibers achieve better yarn strength and fewer imperfec-tions with the R 36 when com-pared to other spinning ma-chines.

The longest R 36 with 600 spin-ning units is in full production.

The customer, who also has ex-perience with competitor ma-chines, is going to order more R 36.

A customer manufacturing Ne 20 yarns from cotton waste on the R 36 was able to save 10 % energy per kg of yarn compared to its R 923 model.

Denim yarn produced on the R 36 for the local Indian market is used by one weaver. He pre-fers this yarn from our custom-er to the yarns from competitor rotor spinning machines. ASI makes it easier for the custom-er to deal with frequent power failures. This customer has also placed another order.

Fig. 4 AMIspin is the system for excellent piecing quality. With the optional AMIspin-Pro technology, even better quality with easier handling is possible.

August 2017 9


The new single-head draw frame generation is characterized by its performance: productivity increase of up to 33 %, reduced energy costs, quicker lot change at outstanding sliver quality and easy, intuitive operation.

In the fall of 2016, Rieter intro-duced the new RSB-D 50 single-head draw frame for the first time to a global audience at the exhibi-tions ITMA Asia in China and ITME in India (Fig. 1). The new draw frame generation excels with a multitude of innovative solutions. These reduce costs, increase the quality and simplify operation and maintenance.

Energy saving drive concept ECOrized with 25 % fewer belts

With the patented drive concept ECOrized, 25 % of the belts and drive elements as well as the dif-ferential gear are saved compared to the previous model. Two servo-motors drive the drafting system. Unique features are the frequen-cy-controlled drive for the suction

and the individual drive for the coiler. The new drive solution for the coiler leads to straight belt tracking and a far longer lifetime (Fig. 2). The quiet machine is evi-dence of the low abrasion.

Lower electricity costs per year

The new drive solution generates yearly savings of approximately Euro 1 000 for each RSB-D 50. If the saving over the lifetime of the machine is compared with the in-

vestment, a very attractive ratio results.

As a standard feature, the draw frames are now equipped with integrated energy measuring. Should a significantly increased power consumption occur, preven-tive maintenance can be carried out and a breakdown of the ma-chine thus avoided.

Even tougher with power fluctuations

With a short power fluctuation, the control voltage is supplied from the drive converter. This en-ergy store can compensate short-term voltage interruptions and reductions. The draw frame keeps running. With longer interrup-tions, the draw frame with active autoleveling shuts down in a con-trolled manner. The web remains in the threaded condition and al-lows a rapid restart.

RSB-D 50 Draw Frame – A New Dimension in Productivity, Quality and Operation

Fig. 1 RSB-D 50 draw frame – highest productivity with 1 200 m/min delivery speed.

Fig. 2 The servomotor for the coiler allows rapid optimization of the speed.

10 August 2017


Further optimized drafting system engineering

Conventional sliver guides in front of the drafting unit are often wrongly adjusted. The most fre-quent fault is noncentral guidance of the sliver. The new, patented sliver guide guarantees central guidance of the sliver at all times and therefore consistent sliver quality (Fig. 3). The web width is reproducible and is set by simple swivelling of the guide elements. Additional fiber guides in the main drafting field prevent lateral slip-ping of the edge fibers. Fewer disturbing faults in the yarn are the result. Furthermore, the top roller bearings are permanently lubricated and run at a lower tem-perature.

When processing fibers with high fiber-fiber friction, as is the case with man-made fibers, active sliver separation is necessary for

a trouble-free can change. To achieve this, the motors of the au-toleveler drafting system create a thin place, which is transported below the coiler and deliberately breaks at can change.

CLEANcoil and CLEANcoil-PES coilers for precise sliver coiling

CLEANcoil is the standard coiler for all fiber materials and there-fore offers maximal flexibility. The spiral coiling tube ensures coiling which is free of drafting faults, even at high delivery speeds. A honeycomb structure on the coiler underside reliably prevents depos-its.

For the processing of 100 % poly-ester, the latest development CLEANcoil-PES (Fig. 4) with a new type of coating offers unique ad-vantages in coiling. Even with crit-ical polyester fibers, the cleaning cycle can be extended by at least 100 %. This also leads to more consistent sliver and yarn quality (Fig.5).

Up to 33 % higher productivity at equal or better yarn qualityThe SB-D 50 draw frame without leveling and the RSB-D 50 au-toleveler draw frame produce, in practice, at a delivery speed of up to 1 200 m/min. Depending on the fiber material, up to 33 % higher speeds in comparison to the previ-ous model are possible.

The following is an example of a customer who processes combed cotton. The RSB-D 50 is operating at 650 m/min, the previous model RSB-D 45 at 480 m/min. Despite far higher delivery speed, the

sliver quality values of the RSB-D 50 achieve an equally good level (Fig. 6). The yarn count Ne 30 shows equal or even slightly bet-ter quality. In the nine-week long-term test, the mean values of the disturbing faults on the RSB-D 50 are also remarkable. Compared to the RSB-D 45, that already achieves very good quality val-ues, the Classimat values could be improved by 13 % and the winder cuts by 8%.

Sliver and yarn quality100 % combed cotton, 29 mm, 4.2 mic., Ne 30, ring yarn

Touch display and LED displays for intuitive operation

The SB-D 50 and RSB-D 50 use the latest control generation as well as a colored touch display with a high resolution. This allows intui-

Fig. 3 Patented sliver guide for consistent and reproducible quality.

Fig. 4 CLEANcoil-PES: the coiler for 100 % Polyester fibers.

Fig. 5 Precise coiling of Polyester slivers thanks to CLEANcoil-PES coiler.

Fig. 6 With significantly higher production, the RSB-D 50 achieves very good sliver and yarn quality.

August 2017 11


tive and easy operator guidance (Fig. 7).

Clear indications are of decisive importance for the operator when it concerns efficient working. Here, LEDs, that are visible from afar and provide information on the condition of the draw frame, help (Fig. 8). They simplify the operator’s work immensely. By means of the USB interface, the data is quickly and easily trans-ferred to other machines. Con-nection to the Rieter mill control system SPIDERweb is possible as a standard feature.

Technological know-how in the machine display

Frequent personnel changes or shortage of specialists are increas-ing problems for spinning mills. Rieter offers the remedy with set-ting recommendations that ap-pear directly on the machine dis-play. The basis is the well-known SLIVERprofessional expert system which is now integrated in the ma-chine display. It provides valuable technological support. This unique tool offers setting recommenda-

tions for the entire machine, after the raw material data has been entered. These can be transmit-ted as a data record onto other machines. In addition, SLIVERpro-fessional assists with the analysis of spectrogram faults such as pe-riods and draft waves. In this way, faults are rapidly corrected and the availability of the machine is increased.

Assembly on or recessed into the floor

The SB- and RSB-D 50 allow, as previously, assembly on the floor. This makes very flexible position-ing possible. A new option is to install the machine recessed into the floor. This means, the transfer height of the can on the empty can magazine is lower and thus more convenient. The full cans are pushed out directly onto the

Fig. 7 Easy operation: touching the selected fields leads directly to the required menu item.

spinning mill floor.

Proven advantages of the RSB-D 45 are retainedThe RSB-D 50 keeps unique fea-tures of the previous model which are all patented. Here is a selec-tion:

Effective suction by automati-cally lifting clearer lips on the top rollers

CLEANtube for sliver coiling without trash accumulations – for cotton applications

Sensor for exact first sliver coils, even with can plates that are too low.

With the RSB-D 50 and SB-D 50, Ri-eter sets another milestone in draw frame engineering for the benefit of our customers. Once more, the saying prevalent amongst mill managers “Buy an RSB and you can sleep peacefully”, applies.

Fig. 8 LEDs visible from afar allow the operators to work efficiently.

12 August 2017


In 1978, Rieter revolutionized the principle of automatic bale open-ing and thus the blowroom process with the A 1 UNIfloc. Then, for the first time, bales were processed from above with a take-off unit mounted on a mobile tower. Since then, Rieter has successively de-veloped this machine in line with market requirements. The new A 12 UNIfloc sets new standards in terms of performance, stable con-struction, modern safety technol-ogy and energy efficiency (Fig. 1).

A 12 UNIfloc – The Art of Modern Automatic Bale OpeningThe A 12 UNIfloc is an extremely robust and stable new development with a previously unrealized machine concept. The machine has been newly designed from scratch and offers the customer high productivity, flexibility and easy handling.

Solid and maintenance-friendlyThe construction basis for the A 12 is the “monocoque” design. This was developed for the aircraft in-dustry to allow a light, robust and torsion-free construction. This method was also used to build the cockpit of the Formula 1 vehicles, to reliably protect the pilot.

The new, innovative construction with the A 12 UNIfloc is especially shown by the self-supporting con-struction of the tower and the take-off unit. In comparison to the

previous generation, the number of individual parts has been mas-sively reduced, as no profiles and covers are necessary. The focus was on a robust, maintenance-friendly machine designed for highest production.

Bale profiling – innovative bale scanningWith the new design of the A 12, a new control technique has been realized. Alongside the new ser-vo-drive concept, it also includes an innovative and efficient “bale

Fig. 1 A 12 UNIfloc – the modern and efficient method of opening bales.

August 2017 13


profiling”. The take-off unit de-termines the bale height and bale condition by means of scanning force measurement. This allows rapid equalization of the bale lay-down.

Quick changeover with multi-assortment operation

The UNIfloc with innovative bale scanning (Fig. 2) rapidly achieves high production after changing to a new bale group. With 2 000 kg/h line production, it reliably sup-plies the cards.

Furthermore, the multi-assort-ment operation provides flexibility by processing up to three differ-ent assortments simultaneously. In cotton processing, the VARIOset function on all Rieter cleaning ma-chines allows a maximal raw mate-rial yield to be achieved, as every assortment is allocated an optimal machine setting. Therefore, the subsequent B 12 UNIclean pre-cleaner is automatically adjusted

via VARIOset to the properties of the material type being fed.

Energy efficiency with the latest drive technology

To fulfill the strictest energy stan-dards, drives belonging to the highest efficiency class are used. The future-oriented drive concept of the A 12 has been systematical-ly developed on torque-controlled servomotors. A servo unit with the latest technology enables energy to be recovered. So, for example, the brake power which is generat-ed during reversal of the take-off roller is fed back into the electric-ity grid. A further refinement that

makes the A 12 UNIfloc extremely energy-efficient.

Safety is prioritizedWith the design of the new model, personal safety has been given high priority. Especially with the 2D scanner, significant progress has been achieved in terms of safety standards.

The 2D scanner is immune to ex-ternal influences such as tempera-ture and air currents and imme-diately recognizes when a person enters the danger area. Additional mechanical devices secure the working area of the A 12 UNIfloc.

By measuring of the volume flow rate, the process is monitored and congestion of the machine is pre-vented. In this way, all prerequi-sites for safe and smooth produc-tion are complied with.

Microtufts – the basis for good cleaningThe interplay between the scan-ning force measurement and the patented wobble disc take-off roll-er with 312 double teeth ensures a continuous extraction to small, uniform fiber tufts, the so-called microtufts (Fig. 3). Opening bales to microtufts is the basis for effec-tive cleaning and dedusting by the subsequent blowroom process.

The new A 12 is the absolute high-light and innovation in the tech-nology of automatic bale open-ing and offers Rieter quality right from the start of the production process.

Fig. 2 High production after bale group change thanks to patented bale scanning.

Fig. 3 Gentle, continuous extraction of the microtufts - thanks to patented wobble disc take-off roller.

14 August 2017


Due to increasing demand since March 2017, Rieter posted order intake of CHF 495.2 million in the first half of 2017. This was 3% below the previous year’s level (first half year 2016: CHF 510.7 million) and with an increase of 26% was well above the second half of 2016 (CHF 394.5 million).

At CHF 415.2 million, sales were 5% down on the previous year (first half year 2016: CHF 436.9 million). On these sales, Rieter generated an EBITDA of CHF 34.8 million (first half year 2016: CHF 34.4 million) and an EBITDA margin of 8.4% (first half year 2016: 7.9%).

The order backlog rose to around CHF 545 million (December 31, 2016: around CHF 440 million). It already extends into 2018.

Sales trend by region

Rieter Demand Picks up in first half of 2017Rieter is the world’s leading supplier of systems for short-staple fiber spinning. Based in Winterthur (Switzerland), the company develops and manufactures machinery, systems and components used to convert natural and manmade fibers and their blends into yarns. Rieter is the only supplier worldwide to cover spinning preparation processes as well as all four end spinning technologies currently established on the market. With 18 manufacturing locations in ten countries, the company employs a global workforce of some 5 230, about 20% of whom are based in Switzerland. Rieter is listed on the SIX Swiss Exchange under the ticker symbol RIEN. www.rieter.com

In the period under review, Rieter achieved the most significant sales in Asian countries (not including China, India and Turkey) with a total of CHF 111.2 million. The decline in sales compared to the previous year was mainly due to reduced shipments to Bangladesh and Vietnam. The order intake recorded in the period showed a positive de-velopment. It was significantly above the accomplished sales and benefited from the dynamism of the Central Asian countries.

In China, sales declined by 20% compared to the first half of 2016, to CHF 83.8 million, with one third of sales gen-erated in Xinjiang province. Order intake was slightly below sales. In the second quarter of 2017, Rieter recorded increasing demand for the model R 36 of the semi-automatic rotor spinning machine, which was introduced in 2016.

In India, at CHF 94.7 million, sales exceeded the previous year’s level by 16%. This is mainly due to the delivery of compact spinning machines K 42 and EliTe compact spinning systems, which were ordered in the second half of

¹ Not including China, India and Turkey

CHF million January – June 2017 January – June 2016 Change Change in local currency

Sales 415.2 436.9 –5% –5%Asian countries1 111.2 152.3 –27% –26%

China 83.8 105.1 –20% –18%

India 94.7 81.5 16% 14%

Turkey 49.1 31.7 55% 56%

North and South America 42.7 45.4 –6% –7%

Europe 17.9 15.5 15% 16%

Africa 15.8 5.4 191% 191%

August 2017 15


The Machines & Systems Business Group benefited from growing de-mand since March 2017. At CHF 325.2 million, order intake was down 5% on the previous year (first half year 2016: CHF 343.4 million). Here, Machines & Systems succeeded in largely compensating for the low level of order intake from Turkey by fulfilling projects from other regions, in particular thanks to orders for the ring spinning machine G 32. In addi-tion, the first orders were booked for the further developed air-jet spinning machine J 26.

In the first half of 2017, Machines & Systems achieved sales of CHF 255.1 million, thereby roughly match-ing the level of the previous year (first half year 2016: CHF 256.9 mil-lion). As a result of the cost reduction measures implemented in Winterthur (Switzerland), Machines & Systems significantly improved the loss on the EBIT level, from CHF –12.1 mil-lion (first half year 2016) to CHF –3.8

Order intake in the first half of 2017 increases by 26% compared to the second half of 2016

Sales in the first half of 2017 reaches CHF 415.2 million, compared to CHF 436.9 million in the same period last year

EBIT of CHF 16.0 million and net profit of CHF 10.9 million at the previous year’s level

Acquisition of SSM – a move into adjacent fields of the textile value chain

million in the first half of 2017.

The order intake of the After Sales Business Group showed positive growth. Thus, order intake increased by 9% to CHF 77.7 million (first half year 2016: CHF 71.2 million). Sales were stable at CHF 70.1 million (first

half year 2016: CHF 70.7 million). Continued investments in the ex-pansion of the business meant that, at CHF 12.8 million, the business group’s EBIT in the first half of 2017 fell slightly below the previous year’s level (first half year 2016: CHF 13.2 million).

The Components Business Group also benefited from growing demand since March 2017. At CHF 92.3 mil-lion, order intake was below the first half of 2016 (CHF 96.1 million), but significantly higher than the second half of 2016 (CHF 82.3 million). The lower order intake in the second half of 2016 led to a corresponding de-cline in sales in the first half of 2017, to CHF 90.0 million, compared to an extraordinarily strong compari-son period (first half year 2016: CHF 109.3 million). Product mix and the resulting lower utilization of individual plants led to an EBIT decline to CHF 12.6 million in the first half year (first half year 2016: CHF 18.4 million).

2016. While the first months were characterized by restraint due to the “demonetarization” at the end of 2016, demand in the second half of the semester was increasingly robust.

In Turkey, with sales of CHF 49.1 million, Rieter generated growth of 55% compared to the previous year, which was attributable to the delivery of orders from the previous year’s period. The hesitant recovery in the last two months of the reporting period meant that order intake was below the level of sales.

In terms of sales and order intake, the North and South America and Africa regions were characterized by large indi-vidual orders in the machinery business.

Business groupsCHF million January – June 2017 January – June 2016 Change Change in local currency

Order intake 495.2 510.7 –3% –3%Machines & Systems 325.2 343.4 –5% –5%

After Sales 77.7 71.2 9% 9%

Components 92.3 96.1 –4% –3%

Sales 415.2 436.9 –5% –5%Machines & Systems 255.1 256.9 –1% 0%

After Sales 70.1 70.7 –1% –1%

Components 90.0 109.3 –18% –17%

16 August 2017


As of June 30, 2017, the Rieter Group had 5 232 employees (June 30, 2016: 5 067 employees). This figure includes the newly added employees of SSM Textile Machinery. In addi-tion, as of June 30, 2017, Rieter had 652 temporary employees (June 30, 2016: 574 temporary employees).

Operating result and net profitRieter’s first half year in 2017 was characterized by improved profitabil-ity in the Machines & Systems Busi-ness Group, a stable result for After Sales and a weaker result in Compo-nents. EBIT reached CHF 16.0 mil-lion, which compared to the previous year corresponds to a slightly higher margin of around 3.9% of sales (first half year 2016: CHF 15.7 million and 3.6%, respectively). In the first six months of 2017, Rieter achieved a net profit of CHF 10.9 million, thereby reaching the previous year’s level (first half year 2016: CHF 11.0 million).

Acquisition of SSM Textile MachineryOn June 30, 2017, Rieter acquired the SSM Textile Machinery Division (SSM) from Schweiter Technologies AG in Horgen, Switzerland. SSM is the world’s leading supplier of preci-sion winding machines in the fields of dyeing, weaving and sewing thread preparation and enjoys success in individual segments of filament yarn production. The business has been attached to Rieter’s Components Business Group as an independent unit.

The purchase price for SSM of CHF 124.2 million consists of an enter-prise value of CHF 100.2 million and cash and cash equivalents of CHF 24.0 million and was financed from existing funds. The transaction costs of CHF 1.9 million related directly

to the acquisition, of which CHF 1.3 million was incurred in the first half of 2017 and CHF 0.6 million in the 2016 financial year, were recorded in the income statement.

Free cash flow and balance sheetThe Group reported a free cash flow of CHF –125.6 million (first half year 2016: CHF 4.5 million) during the reporting period. This development is mainly due to the cash outflow of CHF 100.2 million for the acquisi-tion of SSM Textile Machinery and a temporary increase in net working capital. After payment of a dividend of CHF 22.6 million (CHF 5.00 per share) out of legal capital reserve in April 2017, as at June 30, 2017, cash and cash equivalents, market-able securities and time deposits amounted to CHF 207.5 million and net liquidity to CHF 101.3 million.

Rieter had an equity ratio of 43.8% on the balance sheet date (June 30, 2016: 43.8%).

Improvement program STEP UPIn the first half of 2017, Rieter again focused on innovations, after sales excellence and increasing profitabil-ity.

Innovations: Rieter is specifically focused on the development of new products and services. The single-head draw frame generation RSB-D 50, which was successfully intro-duced in 2016, registered strong de-mand in the second quarter of 2017. In the first half of 2017, the Group invested a total of CHF 22.8 million in research and development. This corresponds to 5.5% of sales.

After Sales Excellence: The After Sales Business Group aims to in-crease sales to CHF 166 million by 2018, representing growth of 30%

compared to 2014. In the period un-der review, Rieter continued to work on this target as planned. Thus, spare parts logistics were contracted out to a service provider within the framework of a European solution, which will allow Rieter to achieve a significant reduction in delivery times. At the same time, Rieter opened a service branch in Kahramanmaraş, to support its customers in the south east of Turkey with an even faster and better service. The order intake of CHF 77.7 million in the first half of 2017 underlines the growth ambi-tions.

Increasing Profitability: As an-nounced on February 1, 2017, Rieter plans to relocate production from the Ingolstadt site in Germany to the Ústí site in the Czech Republic. Rieter is currently negotiating with the em-ployees’ representatives.

OutlookIn the first half year, demand for com-ponents, spare parts and services was stable and order intake for new machines increased.

Despite the still low visibility, Rieter assumes that demand will develop at the level of the first half year in the coming months.

The acquisition of SSM Textile Ma-chinery will make a positive contribu-tion to sales and EBITDA in the sec-ond half of 2017.

Overall in 2017, Rieter expects slightly higher sales than in the previ-ous year and an EBIT slightly below the previous year (before restructur-ing costs), due to the product and country mix.

At the appropriate time, Rieter will provide information on the restruc-turing costs associated with the re-organization concept for the Ingol-stadt site in Germany, which was announced on February 1, 2017.

August 2017 17


Reliance Industries Ltd recorded strong quarterly performance for Q1FY18 results. Commencing on the results, Mukesh D. Ambani, Chairman and Managing Director, Reliance Industries Limited said: “Our Company recorded yet another strong quarterly performance with net profit of ` 9,108 crore, up 28% Y-o-Y. Our industry leading portfolio of assets in the refining and petrochemicals business contributed to considerable improvement in our earnings for the quarter. Retail business also witnessed accelerated growth momentum with YoY revenue growth of 74%. Jio has revolutionised the Indian telecom and data consumption landscape. This digital services business has been built to address the entire value chain across the digital services domain with smart applications to make life simple, beautiful and secure.

Over the last four decades, Reliance has continued to grow and evolve by creating value through building competitive global scale businesses and delivering increasing shareholder returns. Over the past 3-4 years, we made significant investments in new plants, thus creating organic growth platforms for our energy and materials businesses. Full commissioning of new PX facility at Jamnagar during the quarter will strengthen the integration within our polyester chain. Ramp-up of ethane import project has helped in diversifying feedstock sources and mitigating risks for our existing crackers at Dahej and Hazira. It is our constant endeavor to deliver world-class product and experience to Indian consumers through our retail and digital services businesses, which we believe are game changing initiatives.”

Cover Feature

Mr Mukesh D. Ambani - Chairman and MD, RIL

RIL assets in refining and petrochemicals business contributed to improvement in earnings — Mukesh D. Ambani

Reliance Industries Ltd recorded strong quarterly performance

RECORD QUARTERLY CONSOLIDATED NET PROFIT OF ` 9,108 CRORE ($ 1.4 BILLION), UP 28.0%

RECORD QUARTERLY CONSOLIDATED PBDIT OF ` 14,692 CRORE ($ 2.3 BILLION), UP 8.1%

RECORD QUARTERLY STANDALONE NET PROFIT OF ` 8,196 CRORE ($ 1.3 BILLION), UP 8.6%

Reliance Industries Ltd • Revenue increased by 26.7% to ` 90,537 crore ($ 14.0 billion) • PBDIT increased by 8.1% to ` 14,692 crore ($ 2.3 billion) • Profit Before Tax increased by 9.1% to ` 10,536 crore ($ 1.6 billion) • Cash Profit increased by 11.7% to ` 11,252 crore ($ 1.7 billion) • Net Profit (excluding exceptional items) increased by 12.8% to ` 8,021 crore ($ 1.2 billion)

HIGHLIGHTS OF QUARTER’S PERFORMANCE (STANDALONE)

• Revenue increased by 18.4% to ` 70,434 crore ($ 10.9 billion)

• Exports increased by 11.5% to ` 37,111 crore ($ 5.7 billion)

• PBDIT increased by 5.1% to ` 13,507 crore ($ 2.1 billion)

18 August 2017


• Profit Before Tax increased by 5.9% to ` 10,561 crore ($ 1.6 billion)

• Cash Profit increased by 9.2% to ` 10,627 crore ($ 1.6 billion)

• Net Profit increased by 8.6% to ` 8,196 crore ($ 1.3 billion)

• Gross Refining Margin (GRM) of $ 11.9/bbl for the quarter

CORPORATE HIGHLIGHTS FOR THE QUARTER (1Q FY18)

• In April 2017, Reliance entered into a license agree-ment with Resysta International GmbH (Resysta) which gives RIL exclusive rights of production and marketing of RelWood™, a Natural Fiber Polymer Composite (NFPC), in India. This compound will be the raw material for the production of sheets and various profiles used in a wide range of wood and plywood replacement applications.

• In June 2017, Reliance announced the successful and flawless commissioning of the last crystalliza-tion train (Train 3) of the Para-xylene (PX) complex at Jamnagar. This plant is built with state-of-the-art crystallization technology from BP which is highly energy efficient. With the commissioning of this plant, RIL’s PX capacity has more than doubled making it world’s second largest producer of PX with about 11% of global production.

• In June 2017, Reliance and BP announced that they are moving forward to develop already discovered deepwater gas fields, bringing new gas production for India. Further, RIL and BP announced that they will award contracts to progress development of the ‘R-Series’ deep water gas fields in Block KGD6 off the east coast of India.

• In June 2017, Jio, announced the launch of the Asia-Africa-Europe (AAE-1) submarine cable sys-tem. AAE-1, the longest 100Gbps technology based submarine system, will stretch over 25,000 km from Marseille, France to Hong Kong, with 21 cable land-ings across Asia and Europe.

1Q FY 18: FINANCIAL PERFORMANCE REVIEW AND ANALYSIS (CONSOLIDATED)

For the quarter ended 30th June 2017, RIL achieved revenue of ` 90,537 crore ($ 14.0 billion), an increase of 26.7%, as compared to ` 71,451 crore in the cor-responding period of the previous year. Increase in revenue is primarily on account of increase in prices and volumes of refining and petrochemical products partially offset by lower prices and volumes from E&P business. Revenue was also boosted by robust growth in retail business which recorded a 73.6% increase in revenue to ` 11,571 crore. Brent crude oil price aver-aged $ 49.9/bbl in 1Q FY18 as compared to $ 45.6/bbl in the corresponding period of the previous year.

Strong refining and petrochemicals margin environ-ment contributed to higher operating profits for the quarter. Gross refining margins recorded nine-year-high of $ 11.9/bbl whereas petrochemicals EBIT mar-gin were at all-time high of 15.8%.

Cost of raw materials increased by 17.7% to ` 44,117 crore ($ 6.8 billion) from ` 37,469 crore on Y-o-Y basis primarily on account of increase in crude prices and higher volume of crude processed.

Exports (including deemed exports) from India opera-tions were higher by 11.5% at ` 37,111 crore ($ 5.7 billion) as against ` 33,282 crore in the corresponding period of the previous year.

Employee cost increased by 16.3% at ` 2,455 crore ($ 380 million) as against ` 2,111 crore in correspond-ing period of the previous year due to increased em-ployee base and higher payouts.

Other expenditure increased by 20.2% to ` 10,332 crore ($ 1.6 billion) as against ` 8,598 crore in cor-responding period of the previous year primarily due to increase in power & fuel expenses with new capac-ity commissioning and higher selling expenses on ac-count of increase in exports.

Operating profit before other income and depreciation increased by 11.9% on a Y-o-Y basis to ` 12,554 crore ($ 1.9 billion) from ` 11,223 crore in the previous year. Operating profit was led by robust performance from petrochemicals business and sustained strength in re-fining business. This was partially offset by losses in

August 2017 19


Oil & Gas business due to lower volumes and weak domestic price environment.

Other income was lower at ` 2,124 crore ($ 329 mil-lion) as against ` 2,378 crore in corresponding period of the previous year due to lower investible surplus.

Depreciation (including depletion and amortization) was ` 3,037 crore ($ 470 million) as compared to ` 2,725 crore in corresponding period of the previous year mainly on account of capitalisation of new proj-ects in the petrochemicals business.

Finance cost was at ` 1,119 crore ($ 173 million) as against ` 1,206 crore in the corresponding period of the previous year. The decrease was primarily on ac-count of lower average exchange rate for the quarter.

Exceptional items during the quarter was ̀ 1,087 crore ($ 168 million) representing profit from divestment of stake in Gulf Africa Petroleum Corporation (GAPCO).

Profit after tax including exceptional items was higher by 28.0% at ` 9,108 crore ($ 1.4 billion) as against ` 7,113 crore in the corresponding period of the previ-ous year.

Basic earnings per share (EPS) for the quarter ended 30th June 2017 was ` 30.8 as against ` 24.1 in the corresponding period of the previous year.

Outstanding debt as on 30th June 2017 was ̀ 200,674 crore ($ 31.1 billion) compared to ` 196,601 crore as on 31st March 2017.

Cash and cash equivalents as on 30th June 2017 were at ` 72,107 crore ($ 11.2 billion) compared to ` 77,226 crore as on 31st March 2017. These were in bank deposits, mutual funds, CDs and Government Bonds and other marketable securities.

The capital expenditure for the quarter ended 30th June 2017 was ` 25,192 crore ($ 3.9 billion) including exchange rate difference capitalization. Capital expen-diture was principally on account of ongoing projects in the petrochemicals and refining business at Jamna-gar and Digital services business.

RIL retained its domestic credit ratings of “CRISIL AAA” from CRISIL and “Ind AAA” from India Rating and an investment grade rating for its international debt from Moody’s as Baa2 and BBB+ from S&P.

Refining & MaRketing Business

(* Standalone RIL)

% chg. % chg. 1Q 4Q 1Q w.r.t. w.r.t. (In ` Crore) FY18 FY17 FY17 4Q FY17 1Q FY17Segment Revenue 66,945 72,045 56,568 (7.1%) 18.3%

Segment EBIT 7,476 6,294 6,593 18.8% 13.4%

Crude Refined (MMT)* 17.3 17.5 16.8

GRM* ($ / bbl) 11.9 11.5 11.5 3.5% 3.5%

EBIT Margin (%) 11.2% 8.7% 11.7%

During 1Q FY18, revenue from the Refining and Marketing segment increased by 18.3% Y-o-Y to ̀ 66,945 crore ($ 10.4 billion). Segment EBIT (including exceptional item of ̀ 1,087 crore) increased by 13.4% Y-o-Y to a record level of ` 7,476 crore ($ 1.2 billion). Gross Refining Margins (GRM) for 1Q FY18 stood at $ 11.9/bbl as against $ 11.5/bbl in 1Q FY17. RIL’s GRM outperformed Singapore complex margins by $ 5.5/bbl. Marginally weaker product cracks environment on Q-o-Q basis was offset by yield shift and robust risk management. Further, favor-able Brent-Dubai differential aided crude sourcing during the quarter.

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PetRocheMicals Business

% chg. % chg. 1Q 4Q 1Q w.r.t. w.r.t. (In ` Crore) FY18 FY17 FY17 4Q FY17 1Q FY17Segment Revenue 25,461 26,478 20,718 (3.8%) 22.9%

Segment EBIT 4,031 3,441 2,806 17.5% 43.7%

EBIT Margin (%) 15.8% 13.4% 13.5%

Production in India (MMT) 6.5 6.2 6.1

1Q FY18 revenue from the Petrochemicals segment increased by 22.9% Y-o-Y to ` 25,461 crore ($ 3.9 billion), primarily due to increase in prices of PP, PVC, PTA and Polyester and increase in volumes due to addition in capacity of PX at Jamnagar. Petrochemicals segment EBIT increased sharply by 43.7% to ` 4,031 crore ($ 624 million), supported by favorable product deltas and volume growth. EBIT margin for the quarter was at 15.8%, an all-time high level.

oil and gas (exPloRation & PRoduction) Business

% chg. % chg. 1Q 4Q 1Q w.r.t. w.r.t. (In ` Crore) FY18 FY17 FY17 4Q FY17 1Q FY17Segment Revenue 1,324 1,309 1,340 1.1% 1.2%

Segment EBIT (373) (486) (312)

EBIT Margin (%) (28.2%) (37.1%) (23.3%)

1Q FY18 revenues for the Oil & Gas segment decreased by 1.2% Y-o-Y to ` 1,324 crore primarily due to lower volumes in US shale and domestic operations. Segment EBIT was at ` (373) crore, impacted by overall decline in volumes and lower realizations in domestic business.

oRganized Retail

% chg. % chg. 1Q 4Q 1Q w.r.t. w.r.t. (In ` Crore) FY18 FY17 FY17 4Q FY17 1Q FY17Segment Revenue 11,571 10,332 6,666 12.0% 73.6%

Segment EBIT 292 243 148 20.2% 97.3%

EBIT Margin (%) 2.5% 2.4% 2.2%

Business PBDIT 398 366 240 8.7% 65.8%

1Q FY18 revenues grew by 73.6% Y-o-Y to ` 11,571 crore, a milestone level for quarterly revenues. The in-crease in revenue was led by growth across all consumption baskets. The business delivered strong PBDIT of ` 398 crore in 1Q FY18 as against ` 240 crore in the corresponding period of previous year, reflecting a robust growth of 65.8%.

During the quarter, Reliance Retail added 18 stores across various store concepts. At the end of the quarter, Reliance Retail operated 3,634 stores across 703 cities with an area of over 13.8 million square feet.

August 2017 21


Media Business

% chg. % chg. 1Q 4Q 1Q w.r.t. w.r.t. (In ` Crore) FY18 FY17 FY17 4Q FY17 1Q FY17Segment Revenue 321 388 352 (17.3%) (8.8%)

Segment EBIT (41) 5 (62)

EBIT Margin (%) (12.8%) 1.3% (17.6%)

Network18 Media & Investments Limited reported 1Q FY18 consolidated (Ind-AS) segment revenue of ` 321 crore (down 8.8% YoY) and Segment EBIT at ` (41) crore. Growth in broadcasting segment was partially offset by continuing weakness in TV shopping business. Profitability improved incrementally, led by lower losses in TV shopping and a steady ramp-up of the multiple new initiatives undertaken in FY17.

On the occasion of its 125th anniversary, the VDMA has put together a series of multimedia reports. Published on the new website https://humans-machines-progress.com the reports show: Machines are not an end in itself for the machinery engineering industry. Regina Brückner, Vice-Chairperson of the VDMA Textile Machinery Association and Managing Associate of BrücknerTrockentechnik, explains: “Machines are the means to make progress come true for people and to meet challenges like energy, mobility, infrastructure and health. Textiles and textile machinery play – sometimes hidden – a major role in improving daily life.”

Textile machinery is,for example,a starting point for resource-efficient construction. Lightweight construction materials based on knitted, woven or nonwovens fabrics enable enormous savings potential in aerospace. 1,974 litresof kerosenecan be saved per aircraft per year with 20 kilograms less weight on the A320.

Infrastructure maintenance is currently time consuming and costly because the reinforced concrete that has been used in many structures, contains steel reinforcing bar that can corrode, making the concrete structure crack. Textiles offer a robust alternative by replacing steel with carbon. Carbon concrete is durable and versatile in its uses. The carbon used to reinforce concrete is even stronger than steel, but at the same time much lighter and more durable since it does not corrode. Building elements made of carbon concrete can thus be thinner, reducing demand for raw materials and,as a result, energy use and CO2 emissions are cut almost by half. These materials that help maintaining bridges and buildings are made on warp knitting machines, where yarn is processed into net-like cores or even three-dimensional spacer fabrics.

In medical technology,textiles play a vital part, too. The use of textile-based implants, such as stents, heart valve replacements and artificial cartilages or tissues, is growing strongly in modern surgical techniques. Garments with integrated sensors are already commercially available, including T-shirts that can measure pulse, breathing and body movement.

In the working world, textiles are both ubiquitous and practically invisible: Even in modern production sites, workers need professional and protective clothing to protect them from injury and safeguard against hazardous environments. Air conditioning is meanwhile becoming widespread in the modern working world – even in regions with no weather extremes. Air and dust filters made of nonwovens are most of the time not visible but they are there and help to protect staff, as well as sensitive equipment, in production plants.

The stories Materials and Health on humans-machines-progress.com show more exciting examples of mechanical and plant engineering being the driving force for lightweight construction and how medical textile technology ensures good health and quality of life.

VDMA puts together a series of multimedia reports on its 125th anniversary

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When it comes to tuft blending with T-BLEND, Trützschler relies on blending accuracy and reproduc-ibility. The self-monitoring system convinces with flexible application when blending natural and man-made fibers of different lengths, finenesses and colours.

New weighing technology for increased production

Compared with previous Trüt-zschler tuft feeding installations, the performance of the pans of the new tuft blending system has doubled. The filling process is au-tomatically optimized and weighing is performed more quickly due to a vibration-free three-point suspen-sion. All of this combined results in increased weighings per unit of time and more volume per dis-charge. Naturally, the evaluated in-formation is also made available to the higher level Data Management System T-DATA.

Exact dosing - reproducibly and permanently monitored

To ensure the observance of the blending ratio, the only tech-

nologies considered suitable are those that precisely weigh the in-dividual components. For this rea-son, the new Trützschler tuft blend-ing installations T-BLEND are also based on the weighing principle. T-BLEND allows exact dosing of the individual components and - during the second step - blending to a homogeneous material. Thus, precise adherence to the blend-ing ratios over long periods of time and/or within a lot is ensured. The result is always a perfect dosing of the blending components. This rules out a gradual deviation, like for instance with volume measure-ment, that cannot be avoided due to deviations in degree of opening or ambient atmosphere.

BLENDCONTROL monitors each individual discharge and au-tomatically and permanently cor-rects any deviations.

Fore more information on the Truetzschler Group visit: www.truetzschler.com

Contact:Hermann SelkerHead of MarketingPhone: +49 (0) 2166-607-205Fax: +49 (0) 2166-607-550Email:[email protected]

Trützschler T-BLEND Means Guaranteed Blending AccuracyTrützschler about 3000 employees, Trützschler is one of the world’s leading textile machinery manufacturer. Trützschler specialises in machines, installations and accessories for spinning preparation, the nonwovens and man-made fiber industry. The headquarters of the more than 125 year old company is located in Mönchengladbach, Germany. The subsidiaries Trützschler Nonwovens and Man-Made Fiber GmbH with two production sites, and Trützschler Card Clothing GmbH, are also located in Germany. Sites in India, China, Brazil, USA and Switzerland, as well as a number of service centres, provide customer proximity in the important textile processing areas.

T-BLEND installation with one manually and two automatically fed weighing units

Two T-BLEND installations with four weighing units each

BLENDCONTROL touch screen on Blending Opener BL-TO

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August 2017 25

Special Feature

LAKSHMI SUCTION COMPACT SPINNING SYSTEMHistory stands as a documented proof of LMW’s success reflecting phenomenal growth through technologically advanced products. LMW has proven this over 5 decades through its products and has now once again demonstrated with its technologically advanced Lakshmi Suction compact system. LMW standing by its commitment of providing world class technology & cost effective solutions has enriched the features and the stable performance of its suction compact system by identifying the varied needs of customers and ever changing quality demands. In this article, LMW is proud to share the technical edge of Compact Spinning system highlighting the features and field performance.

Superlative features of Lakshmi Suction Compact System

Suction Nozzle to work with single yarns & SIRO yarns

Quadra suction nozzle with top suction - Enhance userfriendliness

Direct Loading System for top Rollers – For uniform and consistent yarn quality

Perforated Rubber Apron – Better compacting & Less cleaning requirement

Special Spinning angle for enhanced machine performance

Lesser Power consumption

Suction Compact System Arrangement:

Better Compacting begins with better drafting of rov-ing. The fourth bottom roller is driven by servo motor to deliver the compacted yarn with utmost accuracy.

This separate drive for the fourth roller ensures there is no additional load on the drafting drive. The rov-ing from bobbin passes through main drafting zone of 3 over 3 pneumatic drafting system ,gets drafted and material is guided over the perforated apron. The apron is placed on the nozzle assembly containing suction slot. Tension draft could be easily adjusted with a single touch in the screen,

Lakshmi suction compact system fulfils all Technological Requirements to produce good compact yarn:

Technologically well designed suction slot and suction nozzle

Better guiding of the compacted fibre strand to the nip of delivery roller

Uniform suction throughout the machine

Perfect fibre guidance through perforated aprons

Fluff accumulation free Compacting zone

Easily adjustable Tension Draft mechanism for Technological fine tuning

Direct Loading System (DLS)

Direct loading system (DLS) for the guiding roller en-sures optimum load to deliver the best quality yarn. With DLS, quality of the output yarn can be optimized and load on the roller can be easily adjusted. Top arm load can be maintained like regular machine and the distance between the compact delivery


26 August 2017

roller and front top roller can be precisely adjusted to enhance the performance.

Suction Arrangement

Top suction nozzle unit with its unmatched ease of operation ensures effective suction system for com-pacting.

A single suction nozzle tube ensures suction for four spin-dles thereby easing the work for operators during clean-ing and maintenance.

Varying boot diameter across the length of the

machine ensures uniform suction thus ensuring ev-ery spindle produces better quality yarn with uniform compacting.

Special Spinning Angle – An Unique Design

LMW always fulfils its re-sponsibility of integrating the inbuilt machine de-sign advantages to en-sure that its customer en-joys the fullest benefits. Keeping this purpose in mind LMW has imple-mented a special spinning angle for Lakshmi compact spinning system which makes the yarn stretch length lesser, yarn tension lower, better twist flow upto the nip and finally gives the comfort of reduction in end breaks upto 20%.

The versatility of Lakshmi Suction Compact system to work with cotton, Polyester, Regenerated Polyester, Viscose, Modal, Micro Modal, PV blends, PC blends, Melange, Bamboo, Modal Cotton Blends, Tencel and for the applications of weaving and knitting has made the system to get accepted by top end spinners and hence LMW could increase its compact spindle base to 1.5 Mn spindles within short period.

Performance Strides

Given below the quality levels achieved in Lakshmi suction compact system in comparison with competition system.


August 2017 27

*The above results are compared with competition in the same mill and under same environment/raw material conditions. The productivity and quality levels are benchmarked for particular mills requirement.


28 August 2017

Power Consumption

Innovation from LMW always strives towards reducing energy consumption for the production process and thereby making the production cost of compact yarn always lower. This is made possible by well augmented suction ducting system and nozzle design. Nozzle has been designed in such a way to meet the suction re-quirements of each spindle with minimum suction loss and thus conserving precious energy.

Replacement Parts Lakshmi Suction Competitor -1 Competitor -2 Compact system

Perforated Apron Yes Yes No

Gears No Yes No

Inserts No Yes No

Additional maintenance No Yes No effort & cost to ensure Front and Compact top roller ratio

Clogging on perforated No Yes Yes Apron/Drum

Compacting Element No No Yes

Guide cover No No Yes

Compacting tube No No Yes

Advantages of Lakshmi Suction Compact System:

1. Perfect Compact Yarn

Increase in Yarn Tenacity by upto 15%

ZWEIGLE yarn hairiness S3 reduced upto 85%

USTER - Hairiness index improvement upto 30%

Yarn imperfections and classimat faults –Improve-ment achieved

2. Process Advantages – Ring Spinning & Downstream Process

Lesser TM to get same yarn strength & increase in Productivity upto 10-15%

Enhanced Ring Spinning machine performance & lesser end breaks

Reduced ends down during Warping

Increased efficiency of looms

Less singeing

Reduced spirality of knitted cloth & hence better dimensional stability

3. Better Raw Material Management

Cheaper raw material can be used to get same yarn quality

Possibility to reduce / optimize comber noil%

The consistent efforts made to meet the stringent qual-ity requirements of downstream processes and ever changing market demands has transformed Lakshmi Suction Compact Spinning System to achieve high standards of results. Adding to the above, the advan-tages in Lakshmi Suction Compact System are lesser investment cost, lesser power & maintenance cost, quick return on investment and close networked after sales service support.

Lesser Maintenance Cost


Italian Textile Machinery Industry Faces New Challenges Industry 4.0

ACIMIT has commissioned to RINA Consulting the study about to the Industry 4.0 with the aim to analyse and highlight the impact of such revolution in the textile machinery industry.

The analysis aims to find the potential benefits and the main opportunities that an implementation of the Industry 4.0 framework can provide to the ACIMIT associated companies. Hereby, the main features and the results of the investigation are presented.

The study focused on the following main points:Industry 4.0: definition and technological environment;Demand Analysis: trend and driver for the textile industry, with the identification of the relevant

megatrends, the demand trend, providing also the innovation strategies carried out from textile industry;Textile machinery industry scenario analysis: the current situation, that was analysed through an online

survey filled by ACIMIT associated companies, and the future perspective, in relation to which an intelligence analysis has been performed in order to recognize the capabilities gained by Industry 4.0 and real examples of technology innovation in textile machinery and manufacturing fields:

Technology gap analys: is a possible roadmap to evolve from the current situation of the textile machinery industry towards the scenario expected from the industry 4.0 framework.

Industry 4.0 and the enabling technologiesThe term Industry 4.0 is used to define a set of technology transformations in systems and products design, production and distribution and to describe the productive process organization that are based on communicating technologies and devices.The industrial production has no longer to be considered as a sequence of separated phases, but as an integrated flow, that is made possible by digital technologies. The 5 pillars of Industry 4.0 are:

• Speed: to reduce the time to market through innovation cycles and short product development

• Quality: to improve the processes and to reduce the waste through the real time monitoring of the production

• Flexibility: to make the offer more dynamic through the mass-customization in the production phases

• Security: to optimize the security issues in order to avoid inactivity periods and cyber attacks

• Efficiency: to increase the productivity with technologies and more intelligent services

Enabling Technologies

In September 2016, the Italian Ministry of Economic development presented the Piano Nazionale Industria 4.0 (the National Industry 4.0 Strategy), which provides concrete measures to support enterprises in favour of trigger investments in research and innovation in this area.

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STRATEGIC TOPICS REGARDING INNOVATION

Trend and driver for the textile industryThe strategic decisions to be implement at corporate level, especially when the company intends to be innovative, should be evaluated against the market macro trends. The megatrends act as a long-term development driver that impacts the business, the economy, the society, the cultures, and the lifestyle. They originate from the inevitable global changes shaping the world-to-be, defining a set of needs to be answered that cannot be influenced by single entities, groups of companies or even countries. Hence, the business strategy for innovation and development must consider these trend analyses and their involvement in the business.

The trend analysis and the drivers of the textile industry, focused on the end user, allowed identifying how the business of this area will be influenced by the textile machinery market trends.

Digitization and connectivity: the widespread of connected digital devices;

Experience in consummation production: the transition from a product-based to an experiencebased economy;

Sustainability and new business models: the growing population and the changes in the lifestyles require the development of new technologies and the implementation of new business models that will able to reduce the resource uses (water, materials, energy).

MEGATREND DEMAND TRENDIncreasing of end-user autonomy

(ecommerce expansion);

Constant need of innovation as new products are continuously required (fast fashion);

Constant expansion of low cost trends.

In order to satisfy the user needs, the hardest challenge and opportunity in developing new processes and business models in the textile industry is the speed of the production processes (fast time to market and just in time production). The trend and driver analysis allowed identifying the strategic topics of innovation. The European textile and clothing industry is investing in response of the market macro trends.

1. Advanced digitalized technologies and new business models

2. High performing and valuable intelligent materials

3. Circular economy and resource efficiency

30 August 2017


Textile machinery industry scenario analysisThirty-three ACIMIT associated companies were involved in drawing the current situation regarding the implementation of the Industry 4.0 in the textile machinery field. The analysis underlined the potentiality offered by the enabling technologies of the Industry 4.0 framework throughout the three phases of the textile machinery productive process:

1. Design and planning phase;

2. Production phase;

3. Use and maintenance phase.

Good knowledge regarding enabling technologies, especially about Cloud computing and 3D printing

Usage of some enabling technologies with good results in the production phase, in particular regarding Cloud computing and Cybersecurity

The need of the subsidies from Piano Nazionale Industria 4.0

The need to understand better how new technologies could be implemented in the industry

CURRENT SITUATION OF THE TEXTILE MACHINERY INDUSTRY

An intelligence analysis highlighted the future perspective for the textile machinery industry, underlining a possible roadmap for the implementation of the enabling technologies of the Industry 4.0 in each of the productive processes’ three phases. The first actions needed in order to achieve the objective of being a 4.0 textile machinery enterprise are the implementation of communicating embedded technologies and, more important, the application of the Internet of thing (IoT) paradigm in the industrial production, the network of people, products and machines and the employment of automation systems for the production control and management.

August 2017 31


Technology gap analysisHereby, specific examples from textile machinery companies that have already implemented a 4.0 approach for each of the three phases of the textile machinery production process are described. The observation between the current situation, represented by the considered sample of companies, and the future perspective, represented by the roadmap, allowed to define what are the missing steps that a medium-sized textile machinery company need to implement in order to enable the Industry 4.0 scenario. For each step, the “technology gap” regarding hardware, skills and infrastructures has been evaluated. A feasibility study for the implementation of the identified enabling technologies has been defined for each phase: one star means that the gap is high, five stars represent a narrow gap. It appears that the production and the use and maintenance phases are organized to adopt and to implement the Industry 4.0 technologies: IoT systems and Artificial Intelligence algorithms are some practical examples for remote monitoring and predictive maintenance applications. The design and planning phase, instead, is far from the Industry 4.0 objective. Virtual reality and machine component simulation represent the first steps of innovation in this primary phase.

SWOT analysisIndustry 4.0 is focused on maximizing the synergies and the balance between the three key models of an enterprise: business, organizational and technological. The first two are related to intangible assets; while the third one represents the tool enabling the company to start an innovative process. In order to adopt an Industry 4.0 strategy, the use of new technologies alone is not enough. A cultural change in the company structure is needed by renovating the strategies the enterprise organization and involving people with precise skills.

32 August 2017


From the business point of view, the use of data in order to create values is the greatest innovation introduced by Industry 4.0. The opportunity to manage a huge volume of data permits the companies to make real-time decision based on detailed information, otherwise non-available. These data acquisition, combined with a good production cycle management ability, will facilitate an achievement of high level of flexibility, a remarkable capability in product customization, an increasing quality, and more efficiency and productivity, enabling new business models.

The organizational model regards about intelligence exhibited by machines and human-being intelligence, that is the distinctive trait that makes a person able to design these hi-tech systems and to communicate and collaborate with every team and corporate involved in the company.

From the technological point of view, the digitalization of the enterprise is a must-do step in the innovation path and it must involve every employee. It is the only wat to implement these new enabling technologies.

This kind of approach makes the company to be more and more valuable on the market and it permits to achieve new skills in order to improve its own offer and to innovate its own business model. This is possible also thank to the financial support issued by Piano Nazionale Industria 4.0.

The main point of the study are summarized in the following SWOT analysis.

August 2017 33


fields of warp knitting machines, technical textiles and warp prepa-ration. “The product innovations which, in many cases, we have developed in cooperation with you, our business partners, have been a decisive factor in our suc-cess over the last 80 years,” said Arno Gärtner, during his welcom-ing speech. Innovations will also be important in the future, and there will be a demand not only for progressive, technical systems but also for innovative services, processes, new organisational structures and new ways of op-erating. The whole textile value-added chain will be optimised by intelligent systems, automation and lean processes.

Digitisation is an important aspect in this case. “Digitisation is changing our world rapidly. This applies to both how we work and live,” explained the CFO, Dr. Helmut Preßl. Sustainability and the efficient use of resources also present huge challenges to the textile machine sector. KARL MAYER is working on all of these aspects. In keeping with its motto, “We care about your future,” the company always has one eye on

KARL MAYER celebrates with its business partners at its headquarters in Obertshausen on 06.07.2017. KARL MAYER, the world leader and a trendsetter in the production of warp knitting and warp preparation machines is celebrating its 80th anniversary in 2017. 80 years of successfully doing business also means eight decades of providing the textile sector with the latest innovations.

KARL MAYER is demonstrating these by holding a number of celebrations to mark its anniversary, during which in-house shows at the company’s various locations will give an insight into the production technology and likely textile developments of the future. The highlight of these innovation shows was an event held at the company’s headquarters in Obertshausen.

In-house show of superlatives to mark Karl Mayer’s 80th Anniversary

Presentation of a modern company to a global audience

The celebration, which was held at the company’s headquar-ters on 6 July 2017, brought to-gether customers from all over the world. More than 750 guests came from 50 countries. Some of the visitors accepted long and troublesome journeys, coming for example from India, China, Tai-wan and Japan.

KARL MAYER was presenting it-self to the visitors as a company, which is ideally placed to face the future. During a guided tour, they were shown the completely renovated Component Production Department, an Assembly Hall, which was only opened at the end of last year, and the modern De-velopment Centre.

Over the last five years, KARL MAYER has invested extensively in improving the competitiveness of its high-tech locations in Ger-many, Italy and Japan, and has spent a total of € 60 million. The money was invested in new plant, modernising the production facili-

ties, and new IT systems.

During the tour of the halls, it quickly became clear that KARL MAYER is passionate about the fu-ture. “The company has changed enormously since my last visit. The facilities and general atmo-sphere are extremely modern and progressive,” said Ning Yi Shen, the Managing Director of Tianhai Lace, thus, stating the general im-pressions.

“We are presenting ourselves successfully as innovative world market leader. All the customers are impressed by the new factory hall added to our headquarters and by the new and innovative further developments of our ma-chines,” confirmed Arno Gärtner, KARL MAYER’s CEO during the event.”

Facing the future with a modern innovation show

In the Development Centre, the guests were treated to a unique, multimedia innovation show. Pro-gressive solutions have enabled the company to grow. KARL MAY-ER is a world leader in its business

34 August 2017


added value for its customers. “We know that, without you, our business partners, KARL MAYER would not be so successful,” said Dr. Helmut Preßl to the assembled guests. Right from the beginning, the founder, Karl Mayer, focused on close collaboration and coop-eration with his customers, and set up company sites on its main markets.

The impressive, in-house show clearly demonstrated what could be achieved for its customers through team spirit, passion, a

high level of expertise, and an understanding of the market. The musician, Alex Auer, was also inspired by the noise of the ma-chines and created the Sound of Innovation, a piece for the guitar and high-tech production tech-nology.

The in-house show was demon-strating nine partially revamped and newly developed machines from KARL MAYER’s Warp Knit-ting, Technical Textiles and Warp Preparation Business Units, as well as new textile developments

having the potential to generate new business. The visitors were extremely impressed by the show. “KARL MAYER is extremely innova-tive and progressive in all its ma-chine sectors. The machines fea-ture a high level of automation, operate at an impressive level of efficiency, and are easy to oper-ate. They are the kings among the machines available on the market,” said Leo Wu of Wu Luen Knitting Co., Ltd.

UNITIN Industrias Morera SA, is specialized in the Dye and Finishing on Piece and Yarn. Located 70Km North of Barcelona, it has been in the textile business since 1924, and is composed nowadays of 4 different departments: yarn die, piece dye, upholstery and denim.UNITIN has always been concerned to work with the most advanced standard both on the social as well as the envi-ronmental responsibility, and is now giving one more step toward a zero waste policy.

Producing indigo warps and wefts in a continuous and modern machinery generates a certain quantity of leftovers. Approximately 3% to 5% of total production is not usable and has to be rejected. Now a new implementation has been set up to reuse all this Indigo cotton leftovers and make yarn out of them.

In order to assure that the yarn will have the right strength to be used in any textile application (either knits or woven), the Indigo cotton leftovers are mixed with recycled polyester fibers.

As a first step, UNITIN introduces count Ne 7/1 Pes/Cot 50/50 in 2 shades Dark and Light. Twisted yarns are also offered. Works are undergoing to also offer Ne 20/1. As this production is made of UNITIN leftovers, only a limited stock will be available.

UNITIN also offers a few sets of sustainable fabrics made with the new recycled yarns with sustainable TENCEL® yarns. Not to be forgotten that the use of the already indigo-dyed cotton eliminates the need to dye the yarn, saving water & energy. Also the final garment wash will demand less water & chemicals.

All production is certified under the Global Recycled Standard.

RECYCLED INDIGO YARNS | by UNITIN

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DORNBIRN-MFC as a Generator of Ideas and Networking AgentEach year, the Dornbirn-MFC is host to more than 700 participants from more than 30 nations (80% from Eu-rope, 15% from Asia, and 5% from America). Incoming registrations seem to suggest that the number of partici-pants will even be slightly higher in 2017.

The European-led innovation platform for the fiber indus-try and downstream manufacturing stages is to function as a generator of ideas and networking agent, with every participant contributing to the success of the event. Do help promote the “Innovation Community“ and encour-age your business friends to take part in the event!

The more than 100 expert presentations (50% from industry and 50% from the academic world) will cov-er the following fields

Fibre innovations

Fibres, textiles and nonwovens for healthcare and hygienic applications

Fibres, textiles and nonwovens for protective applica-tions

Fibres, textiles and nonwovens for sports and leisure wear

Top-class Plenary Lectures on Opening Day: Professor Radermacher, of Ulm University, Head of the Forschungsinstitut für anwendungsorientierte Wissens-verarbeitung (Research Institute for Application-oriented Knowledge Processing), Member of the Club of Rome, will address the subject of “Globalisation, Sustainability, Future – is there still hope for us?”.

Mr. Buisson, Veolia Water Technologies / USA, will re-port on prospects for “Innovative Fibres and Textiles in the Field of Water Management”, and Dr. Meierkord , the President of the European Man-Made Fibres Association CIRFS, will present a paper on the “Contribution of Man-made Fibres to the Balanced Use of Global Resources”.

In the field of fiber innovations participants may look forward to a number of highly interesting papers, includ-ing three presentations from Germany on the subject of “marine litter (microplastics)“ and reviews of such sub-jects as recycling, biopolymers and high-performance fibers.

Recent developments in the field of healthcare and hy-gienic applications will be discussed from the angle of hospital and general health care as well as implantol-ogy. Alongside the major brands, a number of reputable

56th DORNBIRN MAN-MADE FIBERS CONGRESS (DORNBIRN-MFC)

13-15 September 2017 — Communicating the Future of Man-made Fibers

36 August 2017


“private labels“ in the field of sanitary care will also be represented.

The introductory paper on protective applications will be presented by a speaker from NASA (USA), who will talk about flame-retardant textile fibres in the context of space research, and the representative of a world-wide renowned manufacturer of protective clothing will, amongst others, talk about recent developments as well as the requirements placed on upstream processing stages.

In the field of sports and leisure wear the innovative, much-decorated outdoor brand VAUDE and the global manufacturer MAS Holding will present highly interesting papers, and representatives of industry and research will submit presentations on functionalisation and ecological production methods.

Interactive panel discussions: To make our programme more lively and interactive, we have planned panel discussions on a number of key is-sues.

On Opening Day there will be a management talk on the most timely subject of “Marine Litter – a problem turned into an innovative opportunity”. The panel will be headed by Walter Woitsch, a partner of SYNGROUP Consult-ing. Other panel members will be Prof. Franz Josef Ra-dermacher / Ulm University, Philipp Meister / Adidas, Wilhelm Rauch / IVC, Robert van de Kerkhof / Lenzing, Uday Gill / Indorama.

In the field of sports and leisure wear a panel on “Sus-tainability & Performance – a contradiction in this indus-try?” has been planned for Thursday noon, just before the

lunch break; discussants are Rene Bethmann / VAUDE, a representative of Adidas, Ranil Vitarana / MAS Hold-ing, and other Brands, who will be headed by Giuseppe Gherzi.

In the segment protective applications, the second day will be concluded with a discussion on “The endless saga of ultra-light & ingenious high performance fea-tures: What’s next?” Moderated by Dr. Isa Hofmann, the panel will include Evelyne Orndoff / NASA, Michael Stan-hope / Tencate, Oliver Spöcker / Lenzing AG, Pierluigi Bernardi / Nilit and a representative of DSM Dyneema.

Young Scientists Forum: The outstanding success of last year‘s “Young Scientists Forum“ has induced us to repeat the event, this time on the last day of the Congress. The workshop, which will again be chaired by Walter Woitsch, Managing Partner - Industrieberatung SYNGROUP (A), will be devoted to the subject of the “Impact of the Digital (R)Evolution on Research & Development”.

Expert Panel / Workshop ”Circular Economy: Textile & Nonwovens Waste – a threat or opportunity?” on the day preceding the congress:

This highly topical subject will be studied by a group of experts drawn from the fiber industry and downstream manufacturing stages, trading firms and, for the first time, waste management companies.

This unique event will be jointly organised by the Dorn-birn-MFC in cooperation with CIRFS (the European Man-made Fibres Association), EDANA (the association of the nonwovens industry) and ISWA (the global association of waste management companies).

August 2017 37


It will be moderated by SYNGROUP, Austria‘s most im-portant management consulting group) under the chair-manship of Walter Woitsch.

The firms participating in the event represent all parts of the supply chain:

Fiber industry: Lenzing AG, Glanzstoff Industries, Märkische Faser, Advansa, Nature Works, Wellman, Fi-sipe, IFG Asota, LyodellBasell, Aquafil

Machinery construction & chemical industries: Laro-che, Starlinger, Saurer, Oerlikon, Novozymes

Manufacturers, Traders & Brands: Adidas, IKEA, Wol-ford, Textil Santanderina, Utexbel, Salesianer

Refuse Disposal & Waste Management: ARA, ALBA, Reiling, Gläser Textil, Stadt Wien

Trade Associationsv & Universities: Euratex, EcoT-LC, Bayern Innovativ, Vienna University of Technology, STFI Chemnitz

Dornbirn-MFC SponsorsSince the day it was founded, the Dornbirn-MFC has en-joyed the exemplary support of the flourishing economic region of Vorarlberg and the “smart city“ of Dornbirn, and its cooperation with the provincial authorities and the Economic Chamber of Vorarlberg has been steadily in-tensified over the last few years.

Lenzing AG and CIRFS as well as the German Chemical Fibers Association, IVC, are generally regarded as the initiators of this annual event.

Lenzing AG, the world‘s biggest and most innovative cel-lulose fiber manufacturer, plays an important role in the Congress as its lead sponsor.

Dornbirn-MFC sponsors again contribute greatly to the success of the 2017 Congress:

ADVANSA (D) AVANTEXCHT Beitlich (D)CIRFS (B)Dralon (D)Ecoplus. Niederösterreichs Wirtschaftsagentur GmbH

(A)EDANA (B)Fisipe (P) Gherzi Textil Organisation (CH)Glanzstoff Industries (A)

Groz Beckert (D)IFG Asota (A)IKV Innovative Kunststoffveredlung (D)Kunstuniversität Linz (A)Land Vorarlberg (A)Lenzing AG (A)Märkische Faser (D)Oerlikon Textile (D)Saltex (A)Saurer AG(CH)Smart Textiles Plattform (A)Stadt Dornbirn (A)SYNGROUP (A)WISTO – Wirtschaftsstandort Vorarlberg GmbH (A)WKO Wirtschaftskammer Vorarlberg (A)

New Main Programme: The new main programme of the 56th Dornbirn-MFC af-fords a detailed overview of the roughly 100 expert pa-pers to be presented the course of two-and-a-half days in parallel sessions held in three halls of the Kulturhaus Dornbirn. The Programme can be downloaded from the congress homepage www.dornbirn-mfc.com.

DORNBIRN MAN-MADE FIBERS CONGRESS (Dornbirn-MFC)

Congress office Kolingasse 1/1/5A-1090 Vienna / AustriaTel.: +43 (0) 1 319 29 09 - 41Fax: +43 (0) 1 319 29 09 - 31E-Mail: [email protected]

38 August 2017


Special Feature

August 2017 39

It all started as three pages in the German textile magazine Mel-liand in 1957. Today, the global benchmarks known as USTER® STATISTICS have legendary sta-tus throughout the industry as an objective measure of quality. This article marks the 60th anniversary of USTER® STATISTICS – 6 de-cades of a unique and free bench-marking service for the textile field. Their development over the de-cades provides a reliable monitor of how quality demands in textiles have increased. For example, a typical yarn with a 50% quality rat-ing back in 1964 would need to register much better evenness to reach the same level half a century later. This comparison is made us-ing USTER® STATISTICS Percen-tiles for comparing the quality of spinning mills worldwide. Looking ahead, the ongoing expansion of USTER® STATISTICS will contin-

ue with the inclusion of many more quality parameters such as Hairi-ness Length Classification in the 2018 edition.

Spinners themselves were be-hind the origins of USTER® STA-TISTICS in the 1950s, as they saw the benefit of benchmarking their yarn quality against competitors in other mills. USTER had earlier introduced the first yarn evenness tester in 1948, and was there-fore an obvious choice to answer the spinners’ request. This led to the publication of the so-called USTER® STANDARDS, the fore-runner of USTER® STATISTICS, which listed only unevenness data as U% and CV figures for carded and combed yarn.

From cotton to blendsEvenness remains one of the es-

sential quality standards for the in-

dustry today – although the number of other yarn parameters now mea-sured has grown over time, in line with the launch of further USTER® instruments for yarn quality im-provement. By 1997, standards for fibers were added, based on the USTER® AFIS. The statistical data has also become much more comprehensive, extending to take in a wider range of fiber materials, including wool, viscose, polyester and even blends.

In 1957, USTER® STANDARDS included just three quality param-eters, contained in two chapters across only six pages, including six graphs. The latest 2013 edition of USTER® STATISTICS covers 101 quality parameters in 123 chap-ters, using over 2,500 graphs. “The standards are far more than figures to compare yarn quality around the world,” says Gabriela Peters,

Uster Celebrates 60th Anniversary – Remarkable Increases in Quality Expectations Worldwide

The Uster Group is the leading high-technology instrument manufacturer of products for quality measurement and certification for the textile industry. The Group provides testing and monitoring instruments, systems and services that allow optimization of quality through each individual stage of textile production. This includes raw textile fibers, such as cotton or wool, all staple fiber and filament yarns, as well as downstream services to the final finished fabric. The Uster Group provides benchmarks that are a basis for the trading of textile products at assured levels of quality across global markets. The Group’s aim is to forward know-how on quality, productivity and cost to the textile industry.

The Group is headquartered in Uster, Switzerland and operates through a worldwide Market Organization complemented by Technology Centers. It has sales and service subsidiaries in the major textile markets and Technology Centers in Uster (Switzerland), Knoxville (USA) and Suzhou (China). www.uster.com


40 August 2017

Product Manager Yarn Testing with-in Uster Technologies. “USTER® STATISTICS have become a com-mon language of quality for yarn producers and yarn users.”

The famous red lines…USTER® STATISTICS Per-

centiles (USP) were introduced in 1965 – and today everybody in the industry recognizes the familiar red lines, indicating values for a 5%, 25%, 50%, 75% and 95% stan-dard. The USP figure is a rating for a particular parameter, based on comparisons with the quality level being produced by mills world-wide.

Today yarns are often spot-mar-ket internet purchases. Missing specifications based upon objec-tive values lead to a serious dete-rioration in the quality of garments or other textile products that is why also leading yarn traders insist on clear specifications for yarns and USTER® STATISTICS offer the references. The famous red lines show their relevance along the textile value chain. USTER® STA-TISTICS actually bridges the gap between yarn producers and yarn users, enabling them to talk about quality in a way that is understood by all.

The change in evennessStandards for evenness testing

have been available for 60 years and it is interesting to note how much the values behind this stan-dard have improved. The even-ness of yarns has become bet-ter and better over the long term. Taking a typical ring-spun yarn of 100% combed cotton, 20 tex (Ne

30), a USP rating of 50% could be achieved in 1964 with a CVm of 15.2. To be at the same level, a similar yarn in 2013 would have required a CVm value of 12.6. This changing requirement is clearly shown by comparing fabrics made from yarn with these parameters. Sample A, with a USP 50% value for CVm in 1964, exhibits a much more ‘cloudy’ appearance than Sample B, which would have rated a USP value of 50% for CVm 49 years later. The fabric in Sample A demonstrates that the yarn used would be regarded as much less acceptable under today’s increased quality expectations.

This trend underscores the fact that customers over the years have become more and more demand-ing about yarn evenness, in tan-dem with the quality improvements made possible by the technological progress in spinning machinery. At the same time, the evenness test-ing instrument has become much more sophisticated – with advanced technology and sensors now pro-viding the most accurate testing results. With the essential support of USTER® STATISTICS as a tool for daily testing routines, the latest-generation USTER® TESTER 6 is the ultimate in user-friendly and intelligent quality assurance. Its integration of all test data enables the automatic production of quality reports with a clear presentation of the USP values.

The one and onlyWhat makes USTER® STA-

TISTICS unique is the fact that no other company has attempted to establish its own system of collat-

ing and publishing textile quality standards. The Statistics will be continuously developed in the fu-ture – with an important addition already planned for the next edition in 2018 to include hairiness length values measured by the new HL sensors, launched with USTER® TESTER 6.

The entire textile chain – yarn producers, their customers down-stream, as well as traders and machine manufacturers – ac-knowledge that USTER® STA-TISTICS has played a key part in establishing the USTER name as a synonym for quality standards in the textile industry. “I congratulate Uster Technologies on the 60th an-niversary of USTER® STATISTICS and I pay tribute to the company’s achievements in setting the stan-dards we all use in our routines,” says S.P. Oswal, Chairman, Vard-haman Textiles Ltd.

Literally, USTER® STATISTICS are the only way to compare yarn quality objectively – and the textile industry can depend on their con-tinued assistance for the next 60 years and beyond.

Media contact:

Edith AepliSenior Manager Marketing & Communication

Uster Technologies AGSonnenbergstrasse 10CH - 8610 Uster / Switzerland

Direct +41 43 366 38 80Mobile +41 79 916 02 91Fax +41 43 366 39 58E-mail [email protected]


August 2017 41

2017 Apex Award Presented to AATCC for Feature Article in AATCC ReviewAATCC has won yet another Apex award for its January 2016 feature article in the AATCC Review by Amanda Cattermole.

The annual Apex Awards are sponsored by Communications Concepts, Inc. Close to 1,400 entries were submitted for the 2017 contest. 543 Awards of Excellence and 100 Grand Awards were presented to recognize exceptional and outstanding work.

“Transparency is the New Green” was selected for an Award of Excellence in Writing in the subcategory of Green Writing. This latest award is a welcomed addition to the many previous Apex and Tabbie Awards for writing the Association’s publications have enjoyed over the years.

As well as publishing original features on major topics of interest to professionals in the textile, apparel, and related industries, AATCC Review also contains technical articles, and AATCC news and information. Launched in January 2014, the AATCC Journal of Research, a sister publication, is exclusively for peer-reviewed research papers.

To read the award-winning article, visit: www.aatcc.org/pub/aatcc-review

To see all the 2017 Apex winners, visit: apexawards.com/A2017_Win.List.pdf

About AATCC: AATCC, the Association of Textile, Apparel & Materials Professionals, is the world’s leading not-for-profit association serving textile professionals since 1921. AATCC, headquartered in Research Triangle Park, N.C., USA, provides test method development, quality control materials, and professional networking for members in 50 countries throughout the world.

The biannual International confer-ence on Functional Textile & Clothing is being organized by the Textile De-partment of IIT Delhi in partnership with World University of Design, Sonepat and PSG Tech, Coimbatore. The conference will be held on 9-11 February 2018, at New Delhi, India. An International Scientific Commit-tee comprising of scientists from over 18 countries will oversee the content of the conference.

The Conference serves as an in-terdisciplinary platform for leading academic scientists, researchers, en-trepreneurs and market stakehold-ers to share recent scientific devel-opments, cutting edge technologies, innovations, trends, concerns, chal-

FUNCTIONAL TEXTILE & CLOTHING CONFERENCElenges and opportunities in the field of Functional and Smart textiles and Clothing. Topics of the conference in-clude - Protective Textiles and Cloth-ing Medical Textiles and Clothing Athletic, Extreme Sports & Military Applications Smart, Functional & In-teractive Textiles Workwear Surface Functionalization and Coating Textile and Clothing Machinery CAD, CAE Technologies & Mass Customization Garment Design and Manufacturing Advanced Manufacturing Innovative Fashion Design Methodologies Com-fort Science Education and Training Innovation and Entrepreneurship Supply chain Management Sustain-able Production, Recycling.

In addition to technical papers,

the conference has announced Inno-vation Contests for students in Tex-tile and Fashion Products. There will also be a poster contest for students. Manufacturers dealing in functional products, smart textiles, wearables and other such products will also be displaying in an exhibition.

CONTACT:

DR (MS) DEEPTI GUPTA (Professor) Department of Textile Technology, IIT Delhi Hauz Khas, New Delhi-110016 T: 91-11-2659-1417 E: [email protected]

Website: WWW.FTC2018.ORG


42 August 2017

From unveiling the latest trends to bringing back the classic styles, Spykar has always been the youth’ go-to fashion brand. The India’s only high fashion denim brand continues to raise a notch above the rest with their effortless fashion that leads the trends.

Young, trendy, fashion forward. Spykar’s stylish range of women’s line is designed to resonate with the youthful energy of the new-age fashionistas who want to live every moment to the maximum. The exciting new denim wear line, captures the latest trends and seasonal must-haves, boldly lives the Spykar ethos to stay in sync with the young and restless spirit of the girl of today.

Backed by a 25-year legacy, Spykar is certainly defining the rules of the fashion arena. Spykar leads the race by being the only Indian lifestyle brand with a focus on denim. The ensuing customer loyalty, repeat purchases and positive word of mouth are a testimony to the same. The brand combines quality, fit and style to create fashionable attire at attractive price points.

Concurrently, the exceptional designers team up with the latest tech to create innovative fashion that makes the brand more iconic, and the wardrobes, more stylish.

“Like every year Spykar is a part of the 65th annual trade fair CMAI however this year is special as we celebrate 25 years in the industry. At the trade fair, we will be focusing on the launch of a new line for women. The collection will hit the retail outlets by July’17 end. We are glad to be a part of the 65th CMAI as this is the beginning to a lot more this year.” expressed Mr. Sanjay Vakharia, COO Spykar Lifestyle Pvt Ltd.

About Spykar: Established in 1992, Spykar has evolved from a leading fashion Jeans wear brand and a dominant player in the Indian denim industry to a Lifestyle Brand. Spykar is a brand that resonates with the youth and aspiration. Keeping pace with the fashion dynamism, the brand at every point epitomizes global fashion and is a beacon of effortless style.

The brand manifests itself as one of the strongest and most stylish jeans brand with over the last two decades of experience. Right from denims, shirts, t-shirts, non-denim bottoms, and tops to accessories like belt, socks, perfumes, deodorants and bags. The good news for Spykar lovers and for those interested in online shopping in India is that Spykar clothing and accessories are now available online on www.spykar.com. Besides online, Spykar retails from over 200 standalone stores and over 1200 retailers across 330 cities of India.

Spykar is a part of the Lord Bagri promoted Metdist Group, a diversified portfolio of companies. The Metdist Group has built a global presence in the metals trading and fabrication industries as well as other sectors such as hospitality, real estate and insurance in more recent years.

For Further Information, contact:Kinjal: [email protected]; 9819209929Debolina: [email protected]; 9833261087

A New Wardrobe for her: Spykar at 65th CMAI National Garment Fair


August 2017 43

Mr Raju Chandran, Managing Editor, Textile India Progress, Managing Editor, Textile India Progress and Adviser, Indian textile and apparel industry has urged Government of India to enunciate pragmatic policies for growth of Indian textile and apparel industry. Vision Document of Government of India, Ministry of Textiles has targeted to attain US$350 billion textile and apparel output and create 35 million jobs by 2025. His Excellency, Mr Narendra Modi, Prime Minister of India has been aggressively pushing all Ministries to work towards the Make in India success. Indian textile and apparel industry can emerge as a major contributor to the Make in India dream of His Excellency, Mr Narendra Modi, Prime Minister of India, if Government of India, enunciates pragmatic policies in a time-bound period, for the growth of Indian textile and apparel industry.Mr Raju Chandran stated that “Indian textile and apparel industry is exporting US$ 9 billion worth of cotton yarn, spun yarn and polyester filament yarn and if these yarns could be converted into value added garments, India can export US$90 billion worth of textiles from India and asserted that this is absolutely possible. Mr Raju Chandran said that “India can attain US$350 billion textile and apparel output and create 35 million jobs by 2025 and for achieving this he is consistently offering Textile India Progress Team’s intellectual ideas and recommendations”.Mr Raju Chandran has in separate communications to Honourable Mr Arun Jaitley, Finance Minister, Government of India, Honourable Smt Smriti Zubin Irani,Textile Minister, Government of India, Dr Hasmukh Adhia, Revenue Secretary, Government of India and Mr Anant Kumar Singh, Textile Secretary, Government of India. In his note, Mr Raju Chandran has urged Union Cabinet Ministers and Secretaries, to implement all the recommendations made by Confederation of Indian Textile Industry, with the objective of growth of Indian textile and apparel industry. Textile India Progress reproduces CITI’s Note dated 24 July, 2017, addressed to Smt Smriti Zubin Irani, Hon’ble Union Textile Minister, Government of India, explaining issues, relating to Textile and Clothing Industry regarding Foreign Trade Policy (FTP 2015-2020) in Post-GST Regime, for the information of the Indian textile and apparel industry.

Government of India urged to enunciate pragmatic Policies for Indian textile and apparel industry to attain US$350 billion textile and apparel output and create 35 million jobs by 2025

24th July 2017

Smt. Smriti Zubin IraniHon’ble Union Textile MinsterGovernment of IndiaUdyog Bhawan,New Delhi-11 0001

Sub: Textile and Clothing Industry Issues regarding Foreign Trade Policy (FTP 2015-20) in post GST Regime

Respected Madam,

Confederation of Indian Textile Industry (CITI) on behalf of the entire textile industry welcomes the new policy move and initiatives taken by the Government of India in making the India One Tax One Market by enacting and implementing the GST law across all parts of the country. India’s Textile supply chain is spread across the country and GST law of


44 August 2017

“One Tax One Market” will surely help the industry to integrate its supply chain easily and supply goods pan India in efficient manner.

There is no doubt that this law in long run Is going to benefit the textile manufacturing and trade business and will also promote investment in the sector. However, its implementation has brought certain challenges to industry on compliance and business proceeding’s related issues as industry is shifting from older and conventional form of indirect taxation system to new indirect tax environments. Textile and Clothing (T&C) industries involved in the foreign trade sector are facing huge challenges related to new amendments brought out by Directorate General of Foreign Trade (DGFT) in the various schemes under Foreign Trade Policy (FTP) 2015-2020 to align FTP policies with the new GST law. These changes are having serious bearing on the export and import proceedings of the industry.

We are thankful to the Hon’ble Minister for giving industry an opportunity to highlight and flag the issues related to FTP which are affecting their daily business proceedings and future business prospects.

Following are the major issues which we would like to bring to the notice of Hon’ble Textile Minister for her immediate intervention:

1. Merchandise Export from India Scheme (MEIS) Under Chapter 3 of FTP 2015-20 which was brought into force in the new FTP duty credit scrips (ranging between 2 to 5 per cent depending upon product category) were rewarded to exporters based on previous years export performance for the traditional and non-traditional markets. Under the modified scheme industry is facing the following challenges:

a. Under the new FTP on imports of any goods to India only IGST is payable and CGST & SGST is not neutralized under MEIS. This was available in the Pre-GST Regime to pay the excise duty and special additional duties when the raw materials were procured domestically. In the current dispensation under GST only Basic Custom duty can be paid through MEIS Scrip. This will result into accumulation of non-utilized MEIS scrips as this was mostly used to pay the duties levied on the raw material procured. Hence, we request that the payment of IGST, CGST and SGST should be allowed to continue under MEIS scheme.

b. Shipping Bills Pertaining to Petrapole port are not online on DGFT Server: For filing the MEIS application electronically, it is mandatory that all the EDI shipping bills should be online and reflecting the same on DGFT server. Some of the shipping bills are not online from July-2016 to March-2017, therefore industry is unable to file the MEIS applications electronically on DGFT server, which has blocked MEIS credit. It is requested that these shipping bills may kindly be made online immediately for filing of MEIS applications electronically.

c. Cotton Textile industry is under stress due to heavy global competition from various countries like Pakistan, China & Vietnam etc. and therefore, the MEIS benefit should be extended on Export of Cotton Yarn.

d. Moreover, MEIS Scheme may also be extended on the export of: I. Polyester/Cotton blended yarn (Tariff Code: 55095300) ii. PolyesterNiscose blended yarn (Tariff Code: 55095100) iii. Blended Woven Fabrics of Cotton & Man-Made fibers against tariff codes 52103290, 55121910, 55121990, 55141220, 55141920 and 55163200

As these products were covered under the earlier FTP scheme.

2. Export Promotion Capital Goods Scheme (EPCG) Under Chapter 5 of FTP 2015-2020 industries problems and suggestions for improvements are given as follows:

a. Industries which wants to replace or modernize their existing units are facing huge challenges as the present EPCG scheme does not provide a level playing field to the existing old exporting units who want to modernize their existing machinery without undergoing expansion of their current capacities, vis-à-vis a new unit. The EPCG scheme mandates to fulfil EPCG obligation only out of “incremental” export volumes, besides maintaining past average level of exports (Refer Para 5.5 (b) of Foreign Trade Policy). As a result, existing units are obligated to


maintain past average level of exports even though they do not have any such obligation at the time of going for the new investmellts. This seems highly illogical, as it puts the existing units at a great disadvantage compared to a new unit and makes their any new proposal under EPCG scheme unviable. Therefore, we suggest, that the above condition in EPCG Scheme should be removed for the Textile & Clothing sector, by including it in the exemption list provided under Para 5.7.6 of HBP Vol.1. lt may be noted that, manufacturer exporters who make products related to Handicrafts, Handlooms, Carpets, arid Coir & Jute are not adversely affected by this EPCG condition, as they are already listed in the above said exemption list.

b. Under EPCG Scheme, the IGST is required to be paid in cash whereas pre-GST era exemption from Counter Veiling Duty (CVD) and Special Additional Duty (SAD) was available under EPCG Scheme. The exemption from IGST should be extended under EPCG Scheme as it is export promotion scheme. In case it is not allowed, then the EPCG Scheme will not be of any use and it will increase involvement of working capital and blockage of funds for 6-7 years.

c. Transfer of Capital goods from one manufacturing unit to another manufacturing unit of the same company some time takes more than a month’s time as before such transfer industry is supposed to take approval from EPCG committee for transfer of capital goods from one manufacturing unit to another manufacturing unit of same company, after fulfilling stipulated criterion. As EPCG committee meeting held once in a month or sometimes it takes more than a month, in order to manufacture and export the goods to overseas buyers to fulfill mutually agreed delivery schedule, manufacturer exporter may not wait for a longer period to obtain approval for transfer of capital goods. It is, therefore, requested that RLAs may be authorized for granting approval for transfer of capital goods from one manufacturing unit to another manufacturing unit of the same company.

3. Congestion and Lack of Support Infrastructure at Petrapole-India & Benapole-Bangladesh Border:- A Serious Threat Indian Textile Export to Bangladesh: Bangladesh is amongst the top three garment manufacturing countries with annual exports of USD 32 Bn of woven and knitted garments in the year 2016. Bangladesh’ apparel exports are almost double that of India which is around USD 16.5 Bn. Thus, it offers highly potential export market for Indian textile viz. Fabric & Yarns. Indian manufacturers have not been able to capitalise on the huge potential offered by Bangladesh which has grown in leaps and bounds with respect to apparel export, and one of the impediments being the challenges and constraints at the Petrapole Land Port in India and Benapole in Bangladesh. Detailed suggestions are annexed at annexure 1 for congestion improvement at Petrapole port of India: (Annexure 1)

4. Clearance of raw cotton consignments: Customs clearance of raw cotton consignments is subject to examination by PPQ, Amritsar and issuance of Import Release Order (IRO) based on test reports. PPQ, Amritsar is not having their office in Ludhiana/Baddi as such for examination, conducting test and issuance of IRO, importer have to follow with them in their Amritsar office. In the case of raw cotton consignments, importers have to follow certain steps, these steps are as under:

• After arrival of the consignment, importers have to fill application on web site of PPQ, Amrtisar for examination, fumigation and issuance of IRO.

• After receipt of application PPO, Amritsar, depute their staff for examination to port of clearance.

• PPQ, Amritsar staff come to port of clearance depending upon their schedule and they may come for the examination within a day or sometimes it may take two to three days,

• After examination, sample is taken and fumigator fumigates the raw cotton in their presence.

• Minimum 24 hours required for completion of test & test report.

August 2017 45


• After that IRO is issued and the same is required to be deposited in original to customs for clearance of consignment.

From the above it is quite clear that, minimum 5 to 7 days are required for completion of this formality and thereafter shipment will be cleared by customs after completion of their formalities. In most of the cases, clearance of cotton consignments ends up with payment of avoidable demurrage as well as detention.

Submissions:

Our submission is that PPO department’s office may kindly opened at Ludhiana/Baddi or some facilities like visit of PPO, Amritsar may kindly be increased so that delay in exchange of documents between PPO, Amritsar and importers at Ludhiana can be reduced, it also helps in reducing delay in examination, and issuance of IRO.

5. Clearance of partial containers: Textile units are importing raw cotton, acrylic fibre and other items. Generally raw cotton & acrylic fibre consignments arrived in lots like lot of 5 containers or 8 containers or sometimes number of containers will be around 12 to 15.

Presently, importers are facing lot of problem in clearance of these consignments. Consignments arrived smoothly up to the port of discharge like Nhava Sheva/Mundral Pipavav etc. After arrival of consignments at port of discharge, these containers have to move to ICDs for customs clearance. But due to congestion at port of discharge or due to shortage of rail facility for bringing these containers from port of discharge to port of clearance (ICDs), sometimes there is delay in movement of these containers or sometimes these containers moved in parts like out of 10 containers (say), three to five containers moved in train and rest kept pending at sea port. After 5 to 10 days or even more these balance containers moved to port of clearance. This results in delay in clearance as well as results in payment of avoidable demurrage or detention charges. This also results in shortage of material in manufacturing units and production losses.

Submissions:- Permission for partial clearance of containers may kindly be accorded so that importers can clear the partial containers as soon as they arrived at the port of clearance without waiting for arrival of the balance containers which kept pending at port of discharge due to some unavoidable reasons.

6. Request for IGST exemption for EOUs: In view of the amendment in the Notification No. 52/2003 Cus Dated 31.03.2003, EOU units are liable to pay IGST on imports of raw materials, capital goods and spares. Further there is no IGST 1 CGST 1SGST exemption on domestic procurement of raw materials, capital goods and spares.

The GST Council has restricted the exemption from IGST only to units in special economic zones (SEZs) and developers of these zones, the benefit has not been extended to EOUs.

The similar exemption provided to SEZ from payment of GST may be extended to EOUs.

7. RequestforDutyDrawbackbenefitforEOUs: Under GST regime, EOUs are placed on par with domestic tariff area units. The only benefit available to EOU is Basic customs duty exemption on import of capital goods and raw materials. The same benefit can be availed by DTA units by getting EPCG 1Advance authorization. Hence all available benefits were withdrawn for EOUs. However, the benefits available to DTA were not extended to EOUs. The duty drawback benefit available to DTA units was not extended to EOUs. Therefore,Dutydrawbackbenefitsmay be extended to those EOUs who don’t avail BCD exemption oninputs I Excise duty exemption for HSD. [The para 10(c) of Notification No. 131/2016 Gus (N. T.) dated 31.10.2016 may be deleted.]

8. Drawback Rates: In the GST regime, the drawback rates have been substantially reduced. Industries are not

46 August 2017


getting full benefits of ITC as petroleum products are not under GST regime, besides that some other taxes like Mandi Tax etc. are not abated. Hence, Drawback rates should be revised upward.

We fervently appeal to the Hon’ble Minister to kindly consider and take up our above pleas to enable the textile industry exports to remain competitive in the global market.

Thanking you,

Yours faithfully,

Dr S SunandaSecretary General

c.c.: Shri AK Singh Shri Subrata Gupta Smt. Babni Lal Secretary Joint Secretary (Exports) Economic Advisor Ministry of Textiles Ministry of Textiles Ministry of Textiles Udyog Bhawan, Udyog Bhawan, Udyog Bhawan, New Delhi New Delhi New Delhi

August 2017 47


Annexure 1

1. Congestion and Lack of Support Infrastructure at Petrapole-Indcia & Benapole-Bangladesh Border: A Serious Threat Indian Textile Export to Bangladesh

Bangladesh is amongst the top three garment manufacturing countries with annual exports of USD 32 Bn of woven and knitted garments in the year 2016. Bangladesh’ apparel exports are almost double that of India which is around USD 16.5 Bn. Thus, it offers highly potential export market for Indian textile viz. Fabric & Yarns. The following are the salient opportunities which Bangladesh offers:

o In 2013 China topped with exports of Fabrics with 66% market share compared to 12% of India. China took the initiative and started direct shipment from Shanghai to Chittagong port to cut down sailing period to 6-7 days.

Exports of fabrics to Bangladesh for garment export are against back to back Letters of Credit. The buyers mostly from Europe and US require a quick turnaround to meet the fashion cycle and therefore predictability and certainty of shipments of garment exports are extremely critical. Delay in shipments results into air freighting of garments at a big cost and also severe penalties.

Indian manufacturers have not been able to capitalise on the huge potential offered by Bangladesh which has grown in leaps and bounds with respect to apparel export, and one of the impediments being the challenges and constraints at the. Petrapole Land Port in India and Benapole in Bangladesh.

Some of the concerns are highlighted below:

1. There is congestion of at least 5000 trucks at Petrapole Land Customs Station (LCS) and it takes 15 days to cross the border.

2. Due to heavy congestion, trucks are also not available at the border for export shipment and which has resulted into exorbitantly high truck charges.

3. The textile industry in India, mainly from North, West & South is dependent on LCSs situated in W. Bengal for export to Bangladesh. Benapole is the only LCS equipped with EDI infrastructure which makes it mandatory for routing textile exports to Bangladesh through Petrapole-Benapole only.

4. As mentioned Petra pole is a congested port and the truck is required to report at Bongaon Municipal Parking at Kalitala adding to the delay of export consignments. Industry has been taking up this issue of Bongaon but there is no solution. Local authorities have created the bottlenecks and do not follow instructions other than the local authorities / politicians from W. Bengal.

5. On representation by the exporters, CBEC issued a circular No. 18 (2002) -Customs dated 13.3.2002 laying down the priority & procedure for faster movement of export cargo from hinterland ICD/CFS to Nepal and Bangladesh directly to save the hassles at the LCSs, thus reducing congestion and transaction costs. But the local authorities at Bongaon have refrained from following the procedures laid down in the circular and treat priority containers at par with other general cargo.

6. Mr B.S.Bhalla, Joint Secretary, FT (South Asia), Department of Commerce, Govt. of India visited ICP Petrapole on

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15th February 2017 to discuss all the issues, relating to export to Bangladesh through LCS Petrapole, faced by trade & industry. All the issues were discussed in detail in the presence of all the stake-holders. Office Memorandum Dated 27th February 2017 incorporating all the points discussed during the meeting on 15th February 2017 was circulated to all concerned. Serial No. 4 of Para No. 3 of the office memorandum dated 27th February 2017 is reproduced below:-

To overcome this issue and facilitate smooth export movement to Bangladesh, we propose the following:

1. The textile cargo, especially Fabric need to be accorded priority due to its sensitivity with respect to tight shipment schedule as explained above. The priority was accorded in past which is not the case at present:a. Priority movement to be allowed for Trucks carrying textile cargo, especially fabric directly into CWC I Integrated

Customs Park (ICP) Petropole with exemption of parking at Bongaon Municipal Parking at Kalitala and should be allowed to move to Benapole on priority.

b. To ensure smooth and speedy transportation of ICD/CFS sealed containers for exports under CBEC Cir. No. 18 (2002), should be strictly adhered to.

2. Petrapole has started customs office at the newly built Integrated Check Post (ICP). No increase in existing storage capacity of 300 trucks at ICP and 700 trucks at CWC parking remains a concern. It is requested to improve/complete the infrastructure at the Petrapole and increase storage capacity of trucks both at ICP and CWC.

3. Priority as agreed by the Customs and also discussed during the Land Port Committee meeting at Kolkata on 23rd September 2016 is still not implemented

4. Infrastructure at Bangladesh side is very poor and unable to take more than 275 trucks per day. Concerned authorities may be requested to increase handling of trucks from 275 to 450 trucks per day other than chassis. The road infrastructure at Benapole side does not exist which results in threat to security of materials.

National Board of Revenue, Bangladesh should be requested to declare Benapole a Dry Port and it should work on 24x7 basis.

5. Bulk export of cotton to Bangladesh by road

a. Recently, bulk exports of Cotton to Bangladesh by road route has caused huge congestion causing delay of more than 10-15 days to the consignments of fabric waiting at the port.

Sr. Issue DiscussionNo.4. Adherence to Customs Circular No. 18 of 2002

Industry representatives stated that the export shipments already cleared by customs at hinterland CFSIICDs are also perforce diverted to Kalitala Parking.

After detailed discussion the District Administration agreed to allow trucks carrying such export shipments directly to ICP-Pefrapole

Thereafter, export shipments started moving directly from ICD to ICP-Petrapole but now they are again not allowing direct movement of export shipments from ICD to ICP Petrapole. Copy of office memorandum dated 27.02.2017 is enclosed herewith.

Annexure 1

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b. Cotton on the other hand is a commodity and most mills in Bangladesh have stock of cotton for more than two months and, therefore, time is not that important to the buyer if the same is shipped by the sea route; knowing our limited capacity of clearance of traffic at the port, the country, therefore, need to set out the priorities and allow the fabric and other manufacturing goods, which are time bound, to take the highest priority. In case of sea route becoming expensive, it can also be routed through Ghojadanga - Bhomra.

We, therefore, request the Government to take a view in this regard and restrict the export of cotton to Bangladesh through sea route only.

2. Clearance of raw cotton consignments

Customs clearance of raw cotton consignments is subject to examination by PPO, Amritsar and issuance of Import Release Order (IRO) on the basis of test reports.

PPO, Amritsar is not having their office in Ludhiana/Baddi as such for examination, conducting test and issuance of IRO, importer have to follow with them in their Amritsar office.

In the case of raw cotton consignments, importers have to follow certain steps, these steps are as under:

• After arrival of the consignment, importers have to fill application on web site of PPO, Amrtisar for examination, fumigation and issuance of IRO.

• After receipt of application PPO, Amritsar, depute their staff for examination to port of clearance.

• PPO, Amritsar staff come to port of clearance depending upon their schedule and they may come for the examination within a day or sometimes it may take two to three days,

• After examination, sample is taken and fumigator fumigates the raw cotton in their presence.

• Minimum 24 hours required for completion of test & test report.

• After that IRO is issued and the same is required to be deposited in original to customs for clearance of consignment.

From the above it is quite clear that, minimum 5 to 7 days are required for completion of this formality and thereafter shipment will be cleared by customs after completion of their formalities.

In most of the cases, clearance of cotton consignments ends up with payment of avoidable demurrage as well as detention.

Submissions:-

Our submission is that PPO department’s office may kindly opened at Ludhiana/Baddi or some facilities like visit of PPO, Amritsar may kindly be increased so that delay in exchange of documents between PPO, Amritsar and importers at Ludhiana can be reduced, it also help in reducing delay in examination, and issuance of IRO.

Annexure 1

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August 2017 51

Q 1. As per Chapter 53 heading 5303 of the GST rate schedule, raw jute has been kept at the NIL rate slab. Thus, it is presumed that suppliers dealing only in raw jute are not required to register themselves under GST. But Jute Mills are asking their raw jute suppliers to mandatorily register themselves else their supplies would not be accepted. Please clarify whether raw jute suppliers are liable for registration?

Ans. Raw jute has been kept at NIL rate of GST i.e. there would be no tax on raw jute. Therefore, as per Section 23(1)(a) of the CGST Act, 2017 the suppliers dealing only in raw jute are not required to register. Jute mills are not required to pay tax under Reverse Charge Mechanism (RCM) as mentioned under Section 9(4) of the CGST Act, 2017 because raw jute is exempt from GST. Similarly, Raw Silk has also been kept at NIL rate of GST i.e. there would be no tax on raw silk. Therefore, the suppliers dealing only in raw silk are also not required to register.

Q 2. Cotton under chapter heading 5201 and 5203 has been kept in 5% rate slab. Does this mean that cotton farmer is required to register under GST?

Ans. No. As per Section 23(1)(b) of the CGST Act, 2017 an agriculturist, to the extent of supply of produce out of cultivation of land is not liable to registration.

Q 3. Does the buyer of raw cotton (who is a registered person) from the farmer need to pay GST on Reverse Charge basis?

Ans. Yes. As the cotton under heading 5201 and 5203 has been placed under 5% rate and the cotton farmer is not liable to registration, the buyers of raw cotton (who are registered persons) from the farmers are required to pay tax on reverse charge basis as per Section 9(4) of the CGST Act, 2017.

Q 4. In respect of goods classified under Chapters 61, 62 and 63, the rate of tax for goods of sale value not exceeding Rs 1000/- is 5% and for those exceeding Rs 1000/- is 12%. Is this value transaction value or MRP?

Ans. As per the rate schedule, all goods of sale value not

exceeding Rs 1000/- per piece would be taxed at 5% and the goods of sale value exceeding Rs 1000/- per piece would be taxed at 12%. Therefore, it is the sale value i.e. the transaction value on which the tax has to be paid and not the MRP.

Q 5. No rates have been announced for Jute bags and Jute blended bags. It is feared that they may be placed under Chapter 42 for leather wherein the rate for leather bags is indicated as 28%. It is suggested that the Jute bags may be kept at zero % to promote production of green Jute diversified products for combating pollution and safe guarding environment?

Ans. Thebagsmadeofjuteareclearlyspecifiedintherateschedule under heading 4202 22 30. The rates for Hand bags and shopping bags of jute is 18%.

Q 6. Man-made textile yarns have been kept at 18% while fabrics have been kept at 5%. If I buy yarn worth Rs 100 by paying tax at 18% i.e. Rs 18/- and I sell grey fabrics at Rs 150/- considering 50% value addition by paying tax at 5% i.e. Rs 7.50, what will be the treatment of remaining input credit of Rs 11.50. Whether I would get refund of remaining credit and how much credit would I get?

Ans. You will be eligible for full ITC of Rs 18/- paid on your inputs i.e. yarn but whatever credit remains unutilized will remain in your electronic credit ledger and no refund of the same will be allowed.

Q 7. We are a small saree manufacturer at Surat. We buy ready dyed fabrics and get job work, hand work, stitching etc. done to create designer sarees. Wholesalers and retailers from all over India buy these sarees on credit basis for 30 days to 240 days. I as a trader have some queries regarding implementation of GST from 1st July, 2017;

(a) Whatever is sold, 15-30% is returned. What would be treatment of goods returned and how would I adjust my tax liability if the entire GST has already been paid?

(b) What would happen to my opening stock on 1st July 2017. Will I get input credit on it or do

GOODS AND SERVICES TAX

GST: Frequently Asked Questions (FAQs) for Textiles


52 August 2017

I just need to supply it after adding 5% GST on it?

(c) Is government assuring of payment within 180 days. There are rumours that the wholesaler/retailer has to pay within 180 days. Is it true?

(d) How will I make my invoices if a buyer under the composition scheme comes to buy our sarees?

(e) We are confused about GST implementation as there was no tax on us before. Will we get relaxation for the return filing?

Ans. (a) You can issue a credit note in respect of goods returned and adjust your tax liability if the person returning the goods has reversed the credit availed by him at the time of original supply. Such credit note cannot be issued after September of the followingyearorfilingofannualreturnwhicheveris earlier.

(b) Full credit of the tax paid on the stock would be available if the documents evidencing tax payment are available. However, if only documents relating to procurement are available with no documents evidencing tax payment, deemed credit would be admissible as your product was not unconditionally exempt from the whole of the duty of excise under the Central Excise Tariff. Such credit would be available after the tax has been paid on supply of these goods. This facility is available for 6 months period only or till the date of sale of such stock whichever is earlier and is limited to 40% of the central tax paid by you.

(c) As per the second proviso to section 16(2)(d) of the CGST Act, 2017 if a recipient of the supply does not pay to its supplier the value of the supply along with the tax within 180 days from the date of issue of invoice by the supplier, the amount of ITC availed proportionate to the unpaid amount would be added to the output tax liability of the recipient of the supply along with the interest thereon. The credit to reversed can be reclaimed when the value is paid to the supplier along with the tax thereon. Thus the government is not assuring payment within 180 days.

(d) A normal invoice has to be issued irrespective of whether the buyer is under composition scheme or not. The difference would be only when you receive supplies from the person registered under the composition scheme.

(e)Relaxation in filing of returns for the month ofJuly and August, 2017 has already been provided

as per which for the first two months of GSTimplementation, the tax would be payable based on a simple return (Form GSTR-3B) containing summary of outward and inward supplies which will be submitted before 20th of the succeeding month. However, the invoice-wise details in regular GSTR-1wouldhave tobefiled for themonthofJuly and August, 2017 as per the timelines given below:

Month GSTR – 3B GSTR – 1 GSTR-2 (auto populated from GSTR-1)

July, 2017 By 20th August By 5th September 6th – 10th September

August, 2017 By 20th September By 20th September 21st – 25th September

Q 8. I have a manufacturing unit of Cotton trouser where customer gives me fabric and I have to convert it into trouser. What would be the rate applicable on me 5% or 18%?

Ans. The services provided by you fall under the category of job work by virtue of the definition of job workprovided under Section 2(68) of the CGST Act, 2017. The rate for job work in relation to trouser, which is a wearing apparel, is 18%.

Q 9. We are manufacturing floor coverings falling under Chapter 57. As per GST Council meeting dated 11.06.2017, the rate on Coir mats, matting’s and floor coverings falling under Chapter 57 have been reduced from 12% to 5%. Kindly clarify as to whether rate of 5% will be applicable on all types of matting’s and floor coverings of Chapter 57 or only to those made of coir?

Ans. 5%ratewillapplytoonlythespecifieditemsofcoir.

Q 10. We are manufacturing laminated textile under Chapter 59. Previously, our product was exempted under Notification no. 30/004-CE. But in States we were paying 4% VAT. Also we are doing job work f textile lamination for some customers. Our invoice value is sum total of raw material used for job work, labour charges and profit. Under GST regime:

(a) Whether we will get input credit on material? (b) How can we make invoice, which rate, or we

have to make two different invoice, one for material used for lamination and other for service charges?

Ans. (a) Yes. You would be eligible for credit of tax paid on material used for job work.

(b) No. You are not required to raise two different invoices. You would be raising one invoice similar


one to what you have been doing till now and GST at the applicable rate will be charged on the invoice value. You can pay your tax liability by using Input Tax Credit (ITC). However, invoice should carry all the details as required by the CGST Ac, 2017 and the CGST Rules.

Q 11. We are in furnishing fabrics industries for curtain and upholstery fabrics. We mainly deal in woven, knitted, polyester and coated fabrics. You are requested to help us to know the chapter number under which our fabrics as mentioned herein above are covered and GST rate applicable to us?

Ans. Thewovenfabricsareclassifiableunderthevariousheadings depending upon their composition. The knitted or crocheted fabrics fall under Chapter 60. Polyester fabrics fall under Chapter 54 and 55 and coated fabrics fall under Chapter 59.

Q 12. There is a gross confusion on the tax applicable for embroidered sarees and fabric. Typically, principal manufacturers supply fabric/sarees to job workers and get various embroidery designs done on the fabric/sarees. We understand that the textile job worker would charge an output supply GST of 5% on the composite job work supply. This embroidery fabric/saree are then sold by the principal manufacturers to wholesale and retail sellers. What would be the output GST applicable on such embroidered fabric/sarees hen the same is sold by the principal manufacturer?

Ans. The rate of 5% would be chargeable on the job process relating to the textile yarns (other than man-madefibre/filament)andfabrics.Sareesaretreatedas fabrics and a saree remains fabrics only as no new item emerges having distinct name, character and use. Therefore, the sarees whether embroidered or not would be taxed at the same rate at which the fabric is taxed.

Q 13. Will the 5% fabric GST be applied or 12% GST on embroidery strips/badges be applicable?

Ans. Embroidery strips/badges (narrow woven fabrics) are classifiedunderheading5810andchargeabletotaxat 12%.

Q 14. What is the difference between fabric and made-ups? Whether shawl is a fabric or apparel or made-up? What is the rate applicable on shawls?

Ans. Shawls fall in the category of articles of apparel and clothingaccessoriesandareclassifiedunderheading6117, if knitted or crocheted and under heading 6214,

if not knitted or crocheted. The rate of tax is 5% if the sale value of shawl does not exceed Rs 1000/- per piece and the rate is 12% if the sale value exceeds Rs 1000/- per piece.

Q 15. Dress materials are sold by length. They can include upto 3 pieces. These can be plain or embroidered (value-addition or further worked upon). Where should dress material be classified?

Ans. Dresssetsareclassifiedunderheading6307andtherate of tax on the dress materials/patterns is similar to the apparels i.e. for dress material of sale value not exceeding Rs 1000/- tax at 5% would be charged and for dress material of sale value exceeding Rs 1000/- tax at 12% would be charged.

Q 16. Please clarify the ITC (HSN) of yarn made from worn clothing, the material composition of which varies from lot to lot. It is uncertain as the clothing may be of cotton/woollen/man made fibre?

Ans. UnderHSN,theclassificationofyarnisonpredominancebasis. So the yarn having predominance of wool fall under Chapter 51. If all kinds are in equal proportion i.e.Nofibreispredominant,itwillgetclassifiedinthechaptercoveringthefibrelastinthenumericalorder,so Chapter 54 or 55 in case MMF are present.

Q 17. What would be the GST rate on old cotton dhoti used for cleaning purpose? It is a used product recycled for cleaning purpose. Is there any GST on old dhoti because there is no VAT and old dhoti?

Ans. DhotiisclassifiableunderChapter52orChapter54asfabrics.Olddhotiisclassifiableunderheading6309as worn clothing. The tax for chapter 63 is similar to apparels and related to sale value whereas cotton fabrics/man-made fabrics, irrespective of value, are taxedat5%.Whateverbe theclassification,aspresumably the old cotton dhoti would be below the sale value of Rs 1000/- per piece, it would be taxed at 5%.

Q 18. We are small traders of textile dealing in suiting, shirting, sarees, dress material, blankets, dhoti etc. We have some queries regarding implementation of GST from 1st July 2017:

(a) What will be the status of opening stock of textile items? Will 5% be added on closing stock as on 30th June 2017?

(b) What is the GST rate in fabrics, as there are various types of fabrics like cotton, synthetics, man-made fabrics, acrylic, mixture of cotton

August 2017 53


and other fabrics etc. Will there be flat rate of 5% on all fabrics or different rate?

(c) Please provide clarification on HSN number, is it mandatory to quote in invoice by B2C traders & B2B traders? Further there are various codes in one type of item, would it not create confusion among traders?

(d) As per news in some business news channels, Input Tax Credit would not be allowed in textile for some period? Please clarify.

(e) Is Rs 1000/- bracket for 18% rate applicable on sarees and suit lengths or will it attract flat rate?

Ans. (a) When you make supplies out of this stock after 1st July, 2017 you will be liable to pay tax as applicable to the goods sold by you.

(b)GST rate on fabric is flat 5% irrespective ofcomposition.

(c) Upto Rs 1.5 cr. Turnover, no HSN code is required to be mentioned. For those having turnover of Rs1.5to5cr.,first2digitsoftheHSNcodearerequired to mention 4 digits of the HSN code. You will start getting the HSN code in your supplier’s invoice, so it would not cause any issues once the supplies under new regime take place.

(d) ITC would be admissible as per the transitional provisions of GST Law.

(e) Rate of tax linked to the sale value applies only to garments and not for sarees and suilengths which are fabrics.

Q 19. I am an un-registered trader dealing in textile fabrics which was exempted from tax under the State VAT Act. If I get registered under the GST Act, will I be eligible to avail of Input Tax Credit on my stock of goods lying on the appointed day?

Ans. Since the goods you are dealing with are exempted from tax under the State Act, you will not be eligible to avail input tax credit as SGST under the SGST Act, 2017 on your stock of goods lying on the appointed

day. But, you will be eligible to avail CENVAT credit as Central Tax on your stock if you have invoices or other prescribed documents evidencing payment of excise duty under the existing law and such invoices/prescribed documents were issued not earlier than twelve months immediately preceding the appointed day. Your product was not unconditionally exempt from the whole of the duty of excise under the Central Excise Tariff. If you do not possess invoices/other documents evidencing payment of excise duty in respect of your stock of goods, you will be allowed to avail input tax credit on goods held in stock on the appointed day at the rate of 40% of the Central Tax on your intra-State supply of goods after the appointed day or 20% of the Integrated Tax on your inter-State supply of goods after paying Central Tax/Integrated Tax on such supply. You are allowed to enjoy the scheme for six months from the appointed day or till such stock is sold out, whichever is earlier, and tax paid by you shall be credited as Central Tax in your electronic credit ledger.

Q 20. I am a manufacturer of readymade garments. If I send any inputs to the job worker, will it be treated as taxable supply under the GST Act? Can I supply the goods after completion of job work from the place of business of the job worker?

Ans. You can send your inputs or capital goods to a job-worker for job work without payment of tax and also bring back the same, after completion of job work, within one year or three years respectively. You can also supply the inputs or capital goods from the place of business of the job worker subject to the condition that you have to declare the place of business of the job-worker as your additional place of business if the job-worker is not a registered person. However, if the inputs or the capital goods, other than moulds anddies,jigsandfixturesortools,whichhavebeensent to the job-worker are not received back within thespecifiedtimeperiod,itshallbedeemedthatyouhave supplied the inputs or capital goods on the day when you have sent it to the job-worker and you have to pay tax on such supply accordingly.

Note: Reference to CGST Act, 2017 includes reference to SGST Act, 2017 and UTGST Act, 2017 also.

Disclaimer: The replies given above are only for educational and guidance purposes and do not hold any legal validity.

GST – A Good & Simple TaxCentral Board of Excise and Customs & Commercial Taxes Departments

of States/Union Territorieswww.cbec.gov.in, www.cbec-gst.gov.in

Tweet us at @askGST_GoI for any GST related query

Helpdesk: 1800-1200-232, 0120-4888999

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