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11. VOL. XIX Issue1 Editor-in-Chief DEEPAKMOHINDRA Editor ILASAXENA CopyEditor VEERESHWAR SOBTI Asst. CopyEditor SAHILSEHGAL Asst.Editor-News DHEERAJTAGRA Asst.Editor NEHACHHETRI Sr.Correspondent-Textiles SANJOGEETAOJHA Sr.Correspondent-Fashion KALITALAMBA Sr.Executive-Advertising D KCHUGH CreativeTeam RAJ KUMARCHAHAL PEEUSH JAUHARI SATYAPALBISHT PhotoEditor HIMANSHUKUMAR SubscriptionEnquiry RANI MAHENDRU 011-47390000 Operation Director MAYANKMOHINDRA 09810611487 CON T E N T S April 1-15,2016 16 28 32 36 50 Publisher & ManagingDirector RENU MOHINDRA 09810058986,9810438653 HeadOffice ApparelResourcesPvt.Ltd. B-32,SouthExtension-I,NewDelhi-110049 Phone:91-11-47390000 E-mail:rmohindra@apparelresources.com Web associate:www.apparelresources.com ApparelOnlinecontact:91-11-47390000 contact@apparelresources.com editor@apparelresources.com Printing TARA ART PRINTERS PVT.LTD. B-4,HansBhawan,B.S.ZafarMarg, New Delhi-110002 Tel: 23378626,23379686 ---------------------------------------------------------- SUBSCRIPTIONFORM Yes, I wish to subscribe to Apparel Onlinefor BY REGULARMAIL WorldWrap GoBrazil…!BrazilreadytotapontoOlympics opportunities Seen amongst the most interesting markets for retail in the future, Brazil is yet again enjoying its growing popularity with the Rio 2016 Summer Olympics slated to take place in August... 16 18 BurningIssue NGOsatitagain!Findingsof‘Unfreeand Unfair’onlivingconditionsofmigratory workers in Bangalore raise questionson credibility of suchreports 24 Tex-File Premiére Vision Paris: Rich fluidity, elegantly bumpy textures, chic plastics, sensual elastics, and frankgraphics… Despite the overlapping New York Fashion Week and Chinese New Year – Premiére Vision Paris that brought together 6 shows, proved convenient and a time saver for the industry... India BYCOURIER Delhi/NCR Rs. 1800.00 24issues 26 Rs. 2400.00 24issues 24issues 24issues H2F Smaller orders are hurdle toadopt advancedtechnology If we keep aside giants of the Indian home furnishing industryanda few mid-level vertically integrated companies, the useoftechnology, especially the advanced technology is not verycommon... Rest of India Rs. 3600.00 International USD 264.00 Name Designation Company/Institute Address Tel/MobileE-mail 32 FashionBusiness Suit-Up! Suit Stylesruling the runways of2016… Power Dressing, as the world knows it, has made suits a ‘must have’ for all working and even non-working women... TYPE OFBUSINESS Exporter Retailer BuyingHouse Any other(specify) Subscription withinIndia- Send Cheque/DD to Apparel Resources Pvt.Ltd. B-32, South Extn. Part-1, New Delhi-110049, INDIA International subscription (in Dollar)- Credit Card using www.apparelresources.com TelegraphictransfertoBankAccountNo.03192320003806 (Swift No:HDFCINBB) with HDFC Bank, D-9, SouthExtn. Part-2, New Delhi-110049.INDIA 50 ResourceCentre Face to Face with the manbehind TÜV SÜD’s South Asiaoperations CEO of TÜV SÜD South Asia Niranjan Nadkarni shares his views and thoughts on the apparel sector in the region, and his company’s roadmap to help it attain business growth in ahighly competitiveenvironment... 10 Apparel Online India | APRIL 1-15, 2016 |www.apparelresources.com

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13. FROM THE EDITOR-IN-CHIEF’SDESK… ANOTHER REPORT, ANOTHER SET OF DENIALS… WHEN WILL THE NGOs STOP BRINGING OUT REPORTS WITHOUT VERIFICATION OFFACTS! Let me put this straight…, I am totally against the idea of NGOs bringing out reports without talking to companies concerned and also not offering productivesolutions! Reports, just for the sake of reports, only because they bring in the funds, is becoming the norm for international NGOs, and the Indian garment industry is beinghauled up for charges that anyone who is working in the industry, including the buyers, will know for a fact is ‘untrue’ and ‘exaggerated’ picture of ground realities that is being spread without even bothering toinvestigate. In one of my earlier editorials, which was much appreciated by the industry, I had questioned the accountabilityof such reports… I remember my conversation with the late Neil Kearney, who was then the General Secretary of the Brussels-based International Textile, Garment and Leather Workers’ Federation (ITGLWF), on what the NGOs expect… His statement, “My job is to point out the problems at factories through reports, if factories close down because of it, I am not responsible for the workersaffected!” This sounds very callous; but over the years we have repeatedly seen companies getting into trouble because of the ‘unverified reports’ of International NGOs… Talking to few disgruntled workers, that too chosen by a local NGO as the representatives of the so-called facts, whereas it may be their personal grievances or unfulfilled expectations that makes them give such statements and coming to such damaging conclusions, certainly does not augur well for the intention of theseNGOs. Some of you may recall the case when Bangalore-based Fibres & Fabrics International (FFI) and its subsidiary Jeans Knit Pvt. Ltd. (JKPL) accused Dutch-based Clean Clothes Campaign (CCC) and the India Committee of the Netherlands (ICN) of cybercrime, acts of racist and xenophobic nature and criminal defamation, in an unprecedented legalmove. Last year, Eastman Exports Global Clothing had rubbished the report on the Sumangali scheme in Tamil Nadu factories, published by FNV Mondiaal (International Department of Dutch Trade Union Confederation) and the India Committee of the Netherlands, claiming that such reports are instigated only to tarnish the image of the garment industry in India, to what cause…, no one seems toknow! Now again, ICN is back in action with its report ‘Unfree and Unfair’ implicating exporters of the stature of Shahi Exports, Arvind Ltd., Texport Industries and K Mohan of not looking after its workers placed in hostels properly and restricting their movement to an extent, amounting to ‘bondedlabour’! Over the past decade, Shahi in particular has been taking its factories into the interiors and as of today 18 factories of the 42 factories in Bangalore region are in the villages. These factories have not only given employmentopportunities to thousands of people living in the area but havebeen economic boosters for the village community… Why the NGOs never praise such efforts at communityupliftment? Are they more bothered that a few workers are unhappy with Shahi because they did not get some utensils, or maybe a mattress! To put the matter in perspective, only 5%of the total women workers’ strength at Shahi is staying in hostels… At Texport it is a mere 0.66% of total strength and at Arvind it is around 7.5%. It is also important to remember that none of these companies own the hostels and are only facilitators to support safe and healthy livingconditions. For companies like the above mentioned ones which diligently spend 2% of average 3 year turnover, which runs in crores on CSR, to say that spending around Rs. 500-600 (US $ 8-9), per worker (an average of what their requirement would be) to provide basic amenities in living and that too when they are admittedly (Thankfully the NGO does admit this!) paying higher than minimum wages, sounds very farfetched… I think the matter is so trivial that is not even worthy of mention in a report… If upon investigations some gap areas for improvement were found, the same should have been reported to the management with suggestions for improvement. That is what the role of an NGO should be! On the issue of freedom of movement…, the industry is really flabbergasted at the understanding ofthese international NGOs on what constitutes safety and security measures and what is denial of freedom of movement…? Any parent would want their daughter in their late teens and early 20s to be taken care of at work and offwork. Ensuring that they are safely home at a decent time (before dark) and that they move in groups or are properly chaperoned for added security, cannot be equated to bonded labour… A very baffled industry asks, “Do we not ask our own children, particularly girls, to take safety measures… Then why is it wrong when we say the same to our extendedfamilies?” Further, keeping male guards is a mandatory requirement as women cannot be kept as guards at night… nowhere is it even hinted that the guards misbehaved with the girls… All that the report says is that male guards are kept with the intention to ensure that the girls do not ‘runaway’. How could they come to such a conclusion, is something difficult toapprehend. The report is obviously lacking in credibility and there is no accountability on how such vague and loosely put together reports can ruin the good work of the industry in worker welfare. The Government also needs to support the industry and put in a strong word while monitoring the NGOs and also the fundingchannels. I at times ponder on the actual agenda behind such charade…, is it really to help the people or to justify huge salaries paid for suchreports…!

15. MINDTREE value.Therearestillsomeareasforimprovement like we have high power rates; direct export (textile) from Surat is very less which can be multifold. Further, there is high duty on import of machines, in some cases it is up to 28 per cent.OurGovernmentshouldthinkhowwecan compete with those countries which are our competitors. I feel that in India there should be harmony in terms of labour-related laws and shouldnotjustfocusonsmallbenefits. MIND Many State Governments are coming forward with ‘standalone’ textile policies which they claim will not only support the existing industry, but also encourage more investments in the sector. Do you think such policies are really supportive…? Have you seen any benefits accruing from the textile policy in your state…, if yes, please share theareas,andifnot,wherearethehurdles? TREE TOPIC OF DEBATE Vivek Khandelwal, President, Garment ExportersAssociationofRajasthan(GEAR)/ MD, Pattern India, Jaipur I don’t see any major benefit at policy level for apparel manufacturingindustryespeciallyinRajasthan state. We, as an association, have requested a trainingcentreaswellasacluster,butnone of the requests have been accepted by the Governmentyet.Rajasthandoesn’thaveany budget or funding to support the apparel industryatall.Ontheotherside,Iwouldlike to say that most of the states claim good investmentasaresultoftheirowntextile policies,butthisisnottrue.Whatevercompanies are there in this trade, they are fighting to survive and if these policies have some benefit, new companies should come into the business, andwhichisnothappening.Recentexample ArvindSinha,NationalPresident,TheTextile Association(India),Mumbai/ChiefAdvisor, BusinessAdvisorsGroupGovernmentsare doing their best and one should not blame them. But it is also true that fresh investments arenotcominginasenthusiasticallyasthe announcementsaremadeandbenefitsdeclared. One has to look at the situation from a different perspectiveandrethinkwhyordersarestillgoing to Bangladesh, Vietnam, Myanmar, etc. Industry should work towards capacity-building to grab the bulk orders like China does; accordingly the Government support should be planned. The Government should compare the scenario with countries that are our competitors and not with nearby states. Secondly, within policies India has toimproveitsmanufacturingculture,itssystems, approachandinfrastructure.Post-quotamostof theorderswenttoBangladesh,wehavestillnot learnt from that lesson. Our country is a huge democracy and has to work accordingly. The overall business environment is dull and this is also one reason that policies are not showing goodresults. Ajoy P. Bhattacharya, Ex-President,The Southern Gujarat Chamber of Commerce & Industry(SGCCI)/MD,SuratApparelMachine Company, Surat Yes, Gujarat has a good, progressivetextilepolicy,especiallyforspinning sector as major share of Gujarat’s cotton was earlier exported and now hopefully it will be usedinthestateandsupplychainwillgetmore

16. MINDTREE in this regard is the excise duty on branded readymade garments, will it not hurt the entire industry... The industry is already facing many challengesatalllevelsandsadlyweseenospirit tosupportandtopromotetheindustry. garment manufacturers. Spinning industry in HimachalPradeshisanothergoodexampleof goodpolicies. The recently concluded PremiéreVision (PV) Paris (16-18Feb. 2016) witnessed 55,025 visitors from 123 countries. France leads with more than 15,070 visitors while 1,258 visitors were from Japan (10th in rank); however, the event did not notice enthusiastic visitation from India as compared to the size of Indian textile and apparelindustry. What could be the reasons for the same? Share your views and experience regarding the same. If you did visit this addition of PV, what did you achieve that others missed…, pleaseshare. • Anurag Singhla, Honorary Secretary, South IndiaGarmentAssociation(SIGA),Bangalore • If we talk about the industry as a whole, somepoliciesoffewstatesclashandwhichis • ultimatelynotinthebenefitoftheindustry.One cansaythatKarnataka(Bangalore,inpartucular) has very big textile/apparel industry and the state boasts of giants like Madura, Arvind and many more such respected names that are into domestic as well as export industry. But looking tothegroundrealities,Imustsaythatthisisjust a rotation of industry, no new name has been added in the industry. Secondly, our state has natural advantage to take stride in gentswear compared to other states which is working like a‘push’totheindustry.AttheGovernmentend, there is more thrust and convergence required, as the state has more scope to grow and achievemoreandmoreintheapparelindustry. Our association has been doing efforts for the same but there are no strong results. Whatever announcement–beitregardinginvestmentby anyindustryplayerorbenefitfromGovernment side–needsastrongfollow-up,andwhichsadly ismissing. NarinderKMiglani,GeneralSecretary, Knitwear Club, Ludhiana As far as Punjab is concerned,wearequitedisappointed.Whatever bethedatathattheGovernmentclaimsduring investorsummitsoratanyotherplatform, there is nothing strong at the ground level. Policy is next level, but we are struggling to just get our VAT refund, it has become a major issue.ComingtoLudhianainparticular,despite being textile hub and hub for other industries also, why we don’t have a good exhibition centre? We can’t bring our overseas buyers to Focal Point (industrial area) as there is serious concernofpoorroadanddrainagesystem.We arestrugglingtostartourLudhianaIntegrated Textile Park despite the fact that we got the support from Centre, as the State Government isaskingfordevelopmentchargeswhilethere isnodevelopmentsupportfromthem.Wehave developed our own sewerage, own ETP. There is no end to such complaints. Whereas textile policies are concerned, I feel that Tamil Nadu andKarnatakaaregivinggoodfacilitiestothe Be a part of our latestdiscussions... Post your comments on www.apparelresources.com

17. WORLDWRAP GO BRAZIL…! BRAZIL READYTO TAP ONTOOLYMPICS OPPORTUNITIES sports extravaganza, which is even bigger than the soccer world cup. Nonetheless the Brazilian middle-class defined as those who earn betweenUS $ 690 and US $ 2,970 per month is here to stay and even grow! Today Brazil has made a name in the global retail sector because of its middle-class that is empowered with good purchasing power and access to easy credit. The Olympics would be an opportunity for retailers to tap this consumer segment and make the most of thisevent. Retailopportunities inBrazil… The Olympics would provide a platform for many billion-dollar sportswear brands to a body-conscious city,Rio de Janeiro, where the biggest global sportswear brands are already doing brisk business.According to Euromonitor International, the Olympic Games provide an irresistible opportunity for brands to captivate consumers with sponsorship deals and marketing campaigns that will play a key role in generating brand awareness and consumer engagement. With over 80 million Brazilian peopleclaiming to be actively engaged in one ormore sports, of which approximately half of the population is under 30 yearsof age, sportswear in Brazil is a lucrative category and Olympics pushes this quotient even further. This can be no better time as the global market for sports apparel, which is already worth US $ 149.6 billion and is likely to grow by 23 per cent to US $ 184.6 billion by the start of the 2020 games in Tokyo, as per Allied Market Research. The above statistics combined with Brazil’s affinity for sports, Olympics 2016 would provide further surge in profits for manyretailers. Encouraged to spend rather than save, has resulted in the rise of a strong Brazilian middle-class, defined as a new class of employed people who are borrowers with theability to repay. Pumping in a rapid credit growth in their domestic economy, this new generation of consumers has grown from 38 per cent of the population in 2003 to 55 per cent of Brazil’s 191 million inhabitants in 2010 and expected to develop further till 2020. Extremelyhealth-conscious, Brazilians display a typical shopping trait towards sportswear clothing lines endorsed by local celebrities, andtend The economic implication of the FIFA World Cup in 2014 fresh in everyone’s mind. Brazil’s tourism ministry estimated that the World Cup attracted a million foreign tourists for the soccer tournament, injecting US $ 13.2 billion into the country’s economy (about the same the country invested for preparation) and creating 1 million jobs. But the situation since then haschanged and even as Brazil gets ready to host the Summer Olympics, it is mired in political crisis, economic crisis and plagued by the dreaded Zika virus. What used to be a soaring and upswing economy a few years ago is now witnessing a freefall contractingby 3.8 per cent in 2015 and according to economists, it is the worst recession in Brazil in the last 100 years, and some believe the worstever. Large scale demonstrations to protest against the Government and demand for the President’s resignation amid charges of widespread corruption are making more news than theupcoming Seen amongst the most interesting markets for retail in the future, Brazil is yetagain enjoying its growing popularity with the Rio 2016 Summer Olympics slated to take place in August. The FIFA World Cup 2014 saw a significant surgein business for the country and this time again Brazil is benefiting from major investments in its infrastructure, supported with an escalating emergence of middle-class that is empowered with good purchasing power and access to credit, numerous retailers are cashing onto thisopportunity. 16 Apparel Online India | APRIL 1-15, 2016 |www.apparelresources.com

18. WORLDWRAP to purchase apparel on credit more frequently, than consumers in other emerging markets, making sportswear fashion an important element of the country’s growing economy and lifestyle at large. This will build further during the Rio 2016 Olympics, when the country will see not just their own consumer base, but tourist influx aswell. Sportswearbrands to benefit themost… Importantly, the world’s largest sportswear brands are utilizingthe opportunity provided by Olympics, which is amongst the world’s largest sports event. Over the last 8 years, Adidas has showed a significant surge in profits and the Olympics would provide further boost tothe retailer. In 2008, the year of the Beijing Summer Olympics, the brandwas up 4.9 per cent on the previous year with sales totalling US $ 11.9 billion. Though Nike has displaced Adidas as the official sponsor for the games at Rio 2016, which is beingreportedly ahead and sponsoring individuals and also putting their marketing strategies in place to make the most of theOlympics. Olympics 2016 forBrazil… According to organisers, official Rio 2016 products are expected to generate about US $ 260 million in sales within Brazil alone, with 30 per cent of these sales attributed to international visitors. This boost will be good for Brazilas Olympics is attracting international manufacturers, which are subsequently increasing their product offers, leading to a more competitive marketplace with bettervisibility. Yet concern remains, with Olympics round the corner and demonstrations increasing, it still needs to be seen whether the Olympics would provide only a temporary relief for Brazil like the FIFA World Cup orturn around things for what was supposed to be the most promising emerging markets inretail! valued between US $ 25-40 million, nonetheless the retailer would mark its hold by sponsoring individual teams such as France, Canada, Germany,etc. In the past Nike has used Olympics as a platform to introduce new products and services including its Flyknit shoes and Nike+ activity trackers, and this Olympics would be no different! Cashing on this opportunity are other sportswear brand also, such as Puma, Havaianas – the Brazilian Flip Flop brand, Speedo, Under Armour, Oakley, etc. who are going www.apparelresources.com| APRIL 1-15, 2016 | Apparel Online India 17

19. BURNINGISSUE NGOs AT ITAGAIN! FINDINGS OF ‘UNFREE AND UNFAIR’ ON LIVING CONDITIONS OFMIGRATORY WORKERS IN BANGALORE RAISEQUESTIONSONCREDIBILITYOFSUCHREPORTS • Implicates irregularities with regard to hostel facilities and freedom ofmovement • Shahi Exports, Texport Industries, Arvind Ltd. and K Mohan named in thereport • Exporters strongly refute charges in reply to AO’s fact-finding initiative; unhappy that time and again international agencies bring out reports without clarifications from companiesnamed Apparel Online wassurprised amenities such as properfurniture, cupboards for storage, beds and mattresses. K Mohan provides a straw mattress, rug andpillows. At Arvind, the workers do not have any facilities other than bunk beds without mattresses. Except for a cooking gas connection, no other facilities are provided at Shahi Exports and workers have to buy their own bed andmattresses. Texport however provides the workers with a bed and a cooking gasconnection. At Arvind, about 70 workers stay on each floor. The accommodation provided is in a large hall,whichis divided into compartment rooms with three-tier bunk beds. The toilet and bathroom is sharedby 12 to 14 workers. The workers have to cook their own food next to the bunk beds, since there is nokitchen facility in the hostel. The factory has appointed maintenance staff, but workers complained that it is not always clean. Irregular water supply is another issue pointed out by them, which affects their ability to cookfood. The report claims that in2013, K Mohan had separate hostels for migrant workers from North India, who had to pay Rs. 2,000 for food and accommodation. On the other hand, the local workers paid only Rs. 1,300 to Rs. 1,400 permonth in their own hostels. The workers also stated that the food served was mostly rice and sambhar, which is uncommon to their food habits, as they are used to eating North Indian dishes like chapattis, dal andrice. The interviews of the migrant workers and members of the Garment Labour Union (GLU) in Bangalore were conducted in two phases, in October2013and again in December 2014, and discussions with workers from other factories took place inAugust and September 2015. The findings of the report were shared with top buyers, like C&A, H&M, Inditex, PVH and Gap who have responded extensively to the findings and pledged to improve the living conditions of garment workers at their suppliers’factories. Though the findings of the report is damaging to the reputation of the companies…, why no onethought it necessary to ask the companies for answers, is a mystery also; surprising is the fact that such damaging reports are brought out time and again despite both the suppliers and buyersstrongly negating the findings. Earlier also the report on Sumangli practice in South India had been refuted with strong evidence by the industry, and in particular thosenamedin thereport. to see a report ‘Unfreeand Unfair’ recently,wherein the India Committeeof the Netherlands (ICN),an independent NGOhas made some seriousallegations against India’s topexporters in Bangalore that runhostel facilities for theirworkers. On the base of deskresearch and interviews with110 migrant workers fromrural Karnataka and other states like Uttar Pradesh,Jharkhand, Maharashtra andMadhya Pradesh, employed atfour garment factories –Shahi Exports, TexportIndustries, Arvind Ltd., and K Mohanin Bangalore, the ICNclaims that garment workers stillface serious issues like poorliving conditions and hasrestricted freedom of movementdespite MAJOR FINDINGS OF THEREPORT… stated commitments onthe part of big brands toaddress Facilities these problems.Ironically, the very lopsided reportwith It is claimed that none of the hostels provide any kind of recreational facility or cultural and educational programmes; in fact some of the women workers at Shahi Exports expressed their desire for a television. All the hostels lackbasic no discussion orclarification from the company ownersin a positive feedback,admits that the wages at all thefour factories are slightly above the minimum wage ratefixed by the StateGovernment. 18 Apparel Online India | APRIL 1-15, 2016 |www.apparelresources.com

20. BURNINGISSUE • advised that all brands like PVH, H&M, Walmart, C&A, M&S, Columbia, Primark, Inditex and a few others wanted to meet us on hostel issues inBangalore. • Accordingly, all these brands including Li & Fung met our team on 22nd December 2015. All points were clarifiedduring the meeting andapparently • all the brands were satisfied with the clarifications given by Shahi and its future approach of engaging an independent NGO to take care of hostel facilities and concerns, ifany. • Shahi is the largest employer in garment industry, employing almost 100,000 workers. Shahi is following all the local labour laws and fully compliant inalrespects. Buyers have no concern withShahias far asfactory complianceis concerned.Almost 70% workers are female workers and someof them migrate from rural and tribal areasof different statesfor employment. • Knowingfully- • well that the migrant workers will face difficulties in getting suitable accommodation and other facilities, Shahifacilitated in this respect in arranging accommodation so that the migrant workers feel safe and comfortable while working in Shahi. However, Shahidoes not own any hostels as made out in thereport. • Shahialso does not restrict movement of the workers in any way. However, since they are the employees of Shahi, reasonable care is taken for their safety and security.This, • in any way cannot be construed as unnecessary restriction on their movement. They are free to move. But they are expected to take some precautions. This is nothing beyond a parental care which any employer has to take for their workers when they are especially migrant and do not have any local contacts. They are free to move on Sundaysduring Young workers hint at abuse but refuse to speak directly about it for fear ofrepercussion. Workers’freedom Workers’ freedom of movement is considerably restricted. Women workers are only allowed to leave the hostel once a week, which is usually for two hours on Sundays. They can only leave the hostel after registering with the security guard. The workers usually go out together and use this time to buy groceries and personal items.Returning late invites rebuke and sometimes punishment in the form of being made to wait outside the gate for hours till the warden allows them in. Women workers are instructed to go to their hostels immediately after work and are not allowed to go anywhere else. Theirmovement is severely restricted and they are herded to the factory and back to the hostel as a dailyroutine. The report underlines that migrant women are often housed in hostels run by their companies and guarded by male security personnel at night. The young women have been made to believe that these hostels, posing restrictions on their freedom of movement and the presence of male security guards at night, is for their own security only in an alien city where they are isolated from the local people. Yet, one worker said that the guards are appointed “…to ensure that we do not leave for our villages after taking oursalary.” At Shahi Exports, women workers were under the impression that they were coming to Bangalore for a six months’ training with a stipend, but realized after getting there that it was a permanent factorywork. The migrant workers cannot communicate properly (due to language barrier) with the security guards, managers orco-workers at their factory. This makes them more vulnerable to exploitation. A male worker at Arvind states, “Nothing is good. But we are staying here because we haveto live and there is no otherway.” They also prefer to stay at the hostel as they are unfamiliar with the place and culture. One worker said, “I am from a different place and I speak a different language. I don’t know about the situationhere. So I took the companyhostel.” A group of workers from other factories said that they are scolded regularly by theirsupervisors. Some otherallegations Few points in the report are generic and not specific to the above factories. It is claimed that “A worker from anunknown factory, whom the researchers met by chance, said that she was 17 years old. Some of the workers look like they could be 16 years old”. With the industry well attuned to issues of child labour, it is hard to believe that any factory will employ migratory women workersunder 18. A group of migrant workers from other factories reportedly told the researchers that the factory management had said that they were not entitled to a Provident Fund because they were from NorthIndia. POINTS MADE BY SHAHI EXPORTS IN ITS CLARIFICATION… The report is indeed unfair to us and totally biased, based on a selective interview of 11 workers whose background is not known to us. The motivation is to create sensation in the industry with the help of some local unions who are keen on disturbing balance and industrial peace. Nonetheless, we would like to clarify on the issues raised in thereport. • The same report on “migrant workers’ hostels” in Bangalore by ICM/SOMO was sent to us by Gap in November 2015. We were www.apparelresources.com| APRIL 1-15, 2016 | Apparel Online India 19

21. BURNINGISSUE audited by any third party. We have hired these 80 -odd workers as a part of CSR to give back to the society. We train them free of cost and then pay for their house and provide basic facilities, also free of cost. This is helping us train and employ people who are otherwise unemployed. In this process, we pay them higher salaries from locals and provide various ‘free’ facilities as mentioned in the ICN report. Under anycircumstance we have no intention of exploiting people especially when we have nothing to gain looking at the strength. As for the concerns specific to Texport mentioned in the ICN report…, point by point reply is asunder: • the day time. In case they have to be away beyond 7:00 PM, they have to inform warden of their respective hostel. Even their parents are worried about their safety when they are alone in unknown city. Some guidanceis • necessary and it is in the interest of theirsafety. • The brands have personally visited the hostels and are satisfied with the living conditions. Using words like “modern day slavery” is just to sensationalize the issue without any base. It is to benoticed • that no untoward incident has happened as far as theirsafety and security is concerned.It • is equally untrue that they are allowed to leave hostels fortwo hours a week and punishment is given if they are late. Such statements in ICN report are totallyunfounded. • Gap had taken initiative to represent all the brands who met our team on 23rd Dec. 2015. They have appreciated ourinitiative • of engaging NGO and we are working on the same. We have had deliberations with the NGO and soon we will be coming to conclusion. here. Arvind provides the basic infrastructure of cots,mattress, bedsheets and utensils for cookingfood. The arrangement facilitates stay for the initial period, and it has been noted that many workers also move out of this transit place and settle in other localities based ontheir needs/requirements dueto affiliation, marriage, etc. There is no compulsion from Arvind’s side for workers to use these facilities and it purely is on need basis. Arvind garment business directly employs close to about 12,000 associates for its various garment activities and only about 900 are housed in thesefacilities. The accommodationsare owned andmanaged by owners andthey are assuredfor • No Reponse to researchers & denying access – Texport has never been contacted for any information or access from any researcher. After this report we have again informed to all our customers that we are open to share all information andvisits. • TexportRunning • Hostel – Texport does not run any hostel and has only facilitated the 80 workers to stay at a housing run by a Government-recognized NGO called “Janodaya”. They run various women hostels across Bangalore. Credentialof • Janodaya can be verifiedthrough their website (www.janodaya. org). We only refer workers to Janodaya and it is up to them whether they want to provide them accommodation in their housing. The residential facilities occupied by these workers are individual apartmentssituated • in a community dwelling having other families staying in this complex. These other families are in no way connected with Texport or our locals in the area who could be working in otherfactories. • Living Conditions – The ICN report clearly mentions that in case of Texport, livingcondition are better with 5 to 6 workers sharing a kitchen, room and a toilet. The report also mentions that Texport provides cooking gas and bed and does not charge anything for the same. As a part of CSR activitieswe a consistent payment by the Arvind Limited throughout, regardless of the numberof people stayingin theseplaces. 4. Regular meetings are heldwith people staying inthese accommodations by respective factory representatives and minutes are recorded. The accommodations are accessible to Brands/Buyer’s and any other authorised person/agency inthis regard. We have had affirmative reports of compliance and no major lapses are reported sofar. 5. The freedom of movement of inmates of these accommodations isensured and at the same time in event of any medical help,emergency speedy help is providedround the clock. They are alsoenjoying leaves whenever they needit. We do provide a hostel warden and security at these placesat ourcost. ARVIND LTD. HAS PUT FORWARD THE FOLLOWING ARGUMENTS… Arvind is committed to becompliant and remain employer ofchoice. Also to provide safe and hygienic work atmosphere to the workforce as they are most important asset. We are currently engaged in multi- stakeholder discussions with the sustainability teams of different brands we work with and are further willing to implement any suggestion, which makes the life of our people staying in these places much morecomfortable. 1. Accommodations are an arrangement for the migrant labour from within and outside state coming to work with us in factories situated in proximity. However, Arvind directly does not run these facilities but in no way absolves itselffrom the responsibility of providing good living conditions at these facilities for the peoplestaying RESPONSE FROM TEXPORTINDUSTRIES… Texport employs 12,000 people out of which we have only 80 migrant workers which is only 0.66%of our total strength. This canbe 20 Apparel Online India | APRIL 1-15, 2016 |www.apparelresources.com

22. BURNINGISSUE • have also provided them with free cooking utensils and other furniture so that they can cook food as per their liking. They are also expected to cleantheir ownhouse. • Freedom of Movement – Since these so-called hostelsare • not run by Texport we have no control over them. The worker has voluntarily chosen to stay in Janodaya housing and vice-versa. However, after the report we have conducted our own audit and below are thefindings: guidelines for all hostels in the H&M supply chain and reinforce the guidance for migrant workers is followed at the hostelsand in accordance with applicable existing laws. It will review curfew regulations at hostels provided to workers in H&M supply chain, and evaluate freedom of movement vs.safety. It will also assess whether hostels in H&M supply chain are in need of above law improvement to ensure an acceptable living standard. It will develop third party system for grievance handlingfrom workers accommodated in hostels with local NGO and ensure the NGO gets access to hostel andinteract with workers living in thehostels. Inditex will conducta during the day, if a worker has to move out of the factory due to any pressing reason during working hours, s(he) can do so by informing the immediate boss of thereasons to thiseffect. All the inmates of the Janodaya facility have to register with Janodaya and their personal file is maintained giving all the details related to the inmate. A Janodaya female consular is in charge of each facility and in case of any emergency 24 x 7 helpline by Janodaya is available displayed at thefacility. A detailed review of the ICN report published would show that we are doing much more than our peers and also the local law requirements. However at the same time we are also open to any suggestions which can help us to make adifference. • Though the community complex where the workers are residing are safe,however a security guard is posted during the night.During • the day, all workers are at the factory and in case any worker from the facility has not reported, the HR team visits their residence to know the reason of absence from duty and help them for any assistance. Example: Medical care for sicknessetc. • Posting of Male Guards at Night – The Govt. regulations do notallow a lady to be deputedas • guard between 7 pm and 6 am as employment ofladies between this periodcomes • with a lot of conditions related to their safety; thusonly • few industries employ them at night such as IT, ITES and BPO industries. Thus employment of a maleguard • is an inescapableeventuality. • Male guards are deployed for the safety of inmatesat night and not to curbtheir • freedom of movement whichis veryessential. • Workers are free to move in and out of the hostel, subject to applicable rules and regulation ofJanodaya • related to hostel management which are mainlymeant • for orderly operation of the hostel and safety of workers as they are from an outside place. Workers haveabsolute freedom ofassociation • and we have not come across any singleinstance indicating otherwise.Also baselineassessment through aNGO, to get better understanding of thestatus of migrant workers (along with the conditions of accommodation facilities whereverprovided) ACTIONS COMMITTED BY BUYERS AFTER ICN SHARED THE DRAFT REPORT WITHTHEM C&A’s actions on the ground are two-fold; they have taken individual efforts to further investigate conditions at Shahi Exports (one of thegarment factories mentioned in the report and a long-term supplier for C&A), and they work together with Inditex and H&M towards a coordinated and collaborativeapproach. With this collaborative approach they want to ensure freedom of association, liaising with local trade unions GLU (Garment Labour Union) and GATWU(Garment and Textile Workers Union), and to empower migrant workers with training and a grievance handling system, with support of a social entrepreneurial initiative GramTarang. C&A also said, “It’s important to emphasize that, Shahi Exports Unit 14 and Unit 19 had disclosed 4 hostels. During the current visit, we came across that there were 2 additional hostels not previously disclosed. That fact indicates that different conditions could be found in those undisclosed hostelsand further investigations have already started in thisregard.” H&M decided to apply multi- stakeholder developeddormitory at the premises of all the suppliers andfactories. Initially this assessment will bedone for the suppliers and factories based in south of India and then it will be expanded to rest of the supply chain in India. It will implement a project (on the outcome of this assessment) targeting the provision of better hostel facilities, putting inplace a grievance handling mechanism and training and counselling sessions for migrant workers and sensitizing management and staff on taking care of the needs of migrantworkers. PVH: “We also recognize this as a complex issue, as the personal safety, fair treatment and freedom of movement of the workers are all of paramountimportance. We have asked all the named suppliers to review, consider and report back to us ontheir individual circumstances. We are also developing guidelines that are intended to address the issues raised, and would require the vendors to comply and ask them to certify to theircompliance.”0 www.apparelresources.com| APRIL 1-15, 2016 | Apparel Online India 21

23. SUSTAINABILITY GOTS continues to grow with more certifiedfacilities Textile workers take stand against racism in SouthAfrica South African Clothing and Textile Workers Union (SACTWU) took to the streets of Cape Town, in protest against racism, with a clearmessage to end to all forms of racism as well as xenophobia. Teamed upwith Independent News & Media SA, owners of the Cape Times started the campaign “Racism. It Stops WithMe”. Andre Kriel, General Secretary of SACTWU said, “As a trade union with one of the most racially diverse membership profiles in thecountry, SACTWU wishes to be at the forefront of this anti-racism campaign. Often workers bear the brunt of racist attacks in the workplace, and generally in society. It is important that the ongoing scathing attacks on our humandignity be arrested, if we are to help prevent our country from facing an explosion of racial hatred. This cannot be good for socio-economic stability, nor for nation-building.” Kriel further added, “It is important that the ongoing scathing attacks on our human dignity be arrested, if we are to help prevent our country from facing an explosion of racial hatred. This cannot be good for socio-economic stability or nation-building.”Earlier in February, SACTWU embarked on a comprehensive anti-racism campaign. The campaign had gained the required momentum in Independent Media’s 20 newspaper titles and digital platforms, with the media group encouraging debate and discussion on public platforms, in schools and universities around thecountry. Increasingly, the positive trend of the rising numbers of GOTS - certified facilities continued to grow – from 3,663 facilities in 2014 to 3,814 facilities in 2015. Recognizedworldwide, GOTS is the leading processing standard for textiles made with organic fibres. GOTS certified facilities are now located in 68 countries including India, Europe, Turkey, Germany, Bangladesh, China, and many more. The certification enables consumers to purchase items that are certified organic from field to finished product. “Again, the figures show that GOTS’ credible and independent certification of the entire supply chain is an important driver for the business case forsustainability, in contrast to mere self-claims,” shares Claudia Kersten, GOTS MarketingDirector. Till date, GOTS accredited independentcertification bodies report 8,47,749 people working in 2,799 GOTS-certified facilities, which is likely to reach one million soon. “This number is a further indication of the relevance of the Global Organic Textile Standard, in addition to the number of GOTS- certified operations. We will, with the cooperation of the independent GOTS certifiers and academic research, collect and report additional data in order to demonstrate GOTS’ ecological and social impact,” notifies Herbert Ladwig, GOTS ManagingDirector. India remained the top country for eighth year in a row with 1,441 GOTS-certified facilities. In India the interest in GOTS-certified organic textile products is on the rise in both consumers as well as industryas it witnessed an increase of brands and stores selling GOTS-certified textiles inretail. Levi’s begins clothesrecycling After a year of successfully launching a new clothing recycling initiative in the US that enabled consumers to recycle clothing and shoes in store to reduce the volume of waste sent tolandfills every year, jeans wear major Levi Strauss & Co. is rolling out the same initiative across Europestarting in theUK. In the UK, consumers can now drop- off any brand of clean, dry clothing or shoes in a specially installed collection box at their local Levi’s store and will receive a voucher for 10 per cent off on a single, regular- priced Levi’s item in-store. Looking ahead to the future, Levi’s seeksto roll out the initiative across the rest of Europe by the end of 2017. Every year, the UK discards 350,000 tonnes of unwanted clothing into unsustainable landfills in thecountry. “We’re thinking aboutsustainability across all facets of our businessand how to shift consumer behaviour to make recycling clothing the norm. Collecting used clothing at our stores makes it simple andeasy for consumers to do their part and builds upon our commitment to do the right thing for the environment,” says Michael Kobori, Vicepresident of Sustainability at Levi Strauss & Co. Expanding clothing and shoerecycling is the latest endeavour inLS&Co.’s broader sustainability goal of creating an infrastructure that supports a circular economy. The clothing recycling program inEurope builds upon an ongoing partnership with I:Collect (I:CO), a solutions service provider for reuseand recycling of apparel,footwear and othertextiles. 22 Apparel Online India | APRIL 1-15, 2016 |www.apparelresources.com

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25. TEX-FILE Premiére VisionParis RICH FLUIDITY, ELEGANTLY BUMPY TEXTURES, CHIC PLASTICS, SENSUAL ELASTICS, ANDFRANK GRAPHICS… Despite the overlapping New York Fashion Week and Chinese New Year – Premiére Vision Paris that brought together 6 shows, proved convenient and a time saver for the industry. The event witnessed 55,025 visitors (France leading with more than 15,070 visitors) from 123 countries who discovered the collections and new product developmentsproposed by 1,725 selected exhibiting companies from spinners, weavers, accessory makers, design studios, tanners and furriers, fashion manufacturers – including 145 new companies. This high-level participation isexceptional for the sector. Coming from 52 countries after rigorous selection, they were presenting their latest creative developments for spring/summer 2017. Out of 1,725 exhibitors,maximum 777 were in fabric section followed by 285 in accessories and 270 in leather segment…; maximum exhibitors (671) were fromItaly. New fashion directions were on fire and there was a clear incitement to refine anything rudimentary with developments that were rich in poetry and technology. It took an offbeat approach to romanticism, posing a tart softness on naive florals and patterns, offsetting it with a rebellious, surreptitiously perturbingspirit. Developments swung the experimental towards reality in radiant realisations, transparencies with substance, rich fluidity, elegantly bumpy textures, chic plastics, sensual elastics, andfrank graphics. Colours evoke a decisive emphasis on pale and warm tones, and don’t combine neutrals other than to reveal a tasty, floral or artificial radiance. “I come every season.We always take the time to attend because these are the most important shows for us. We especially love the special areas like Maison d’Exceptions, which are quite inspiring,” said Emily Robson, Head of R&D at Christopher Kane (UK) echoing the thoughts of most of the qualityvisitors. The event witnessed 55,025 visitors from 123 countries believe that supplies from China will decrease in 2016 in favour of the Bangladesh-Cambodia-Vietnam trio (Vietnam having become the second leading supplier to the USA). This change will maximize the margin between the costand sales price. The three countries have very highly equipped factories and a high quality labour force, often due to Chinese investments. According to the report, Myanmar is emerging in the market, but there will be a need to wait for another 5 to 6 years(the time to train the workforce and create infrastructure) before it becomes truly operational. The year 2016 should also mark a rise in supplies from Turkey (65 per cent of those interviewed were convinced of this), and Morocco, while Tunisia – already stalled in 2015 at (-) 5.4 per centin value and (-) 6.5 per cent in volume – is expected to show a furtherdecline. The survey says nothing about India, which unfortunately reflectsthe stagnant state in which the Indian sourcing has got into in the EU. On the question of impact of increase in cost of production on the sale prices, 54 per cent of respondents opted for ‘partial’ impact, while it will ‘not’ happen according to 36 percent. During the event, Première Vision also organized a conference presenting the new panorama of global sourcing. Based on a study conducted by the IFM (French Institute of Fashion), and moderated by Gildas Minvielle, Director ofEconomic Observatory, IFM, the conference proposed a roundup and analysis of the mapping of globalsourcing. Survey of 100 brands and labels, conducted by the IFM indicated that the map of global apparel sourcing is evolving and nothing will be the same as before: China (with 39 per cent of market share) remains, of course, the leading supplier to the EU and the USA in clothing, but it is now strongly challenged by other Asian countries (Bangladesh, Vietnam, Cambodia), which are growing in strength and tracing new routes for textileindustry supply. In the EU, where clothing imports rose by 10.2 per cent (¤ 80.9 billion), those from China showed positive growth (6.9 per cent), but lower volume of (-) 12.2 per cent. This is as opposed to Bangladesh (24 per cent in value, 3.6 per cent in volume), Cambodia (32.4per cent in value, 13.4 per cent in volume) and Vietnam (24.3 per cent invalue, 2.4 per cent involume). It also claimed that some 49 per cent of those replying to thesurvey 24 Apparel Online India | APRIL 1-15, 2016 |www.apparelresources.com

26. TEX-FILE TextileindustryrespondspositivelytoHaryanaBudget TexFind A SPROUTS- COVERED VEST TOWEAR Remember chia pets…, the American styled terracotta figurinesused to sprout chia, wherethe chia sprouts grow within a couple of weeks to resemble the animal’s fur or hair. Well, the chia pet is back, inwearable form, thanks to Elizabeth Esponette, a product designer from Cornell University. The ‘Chia Vest’, a hooded muslin garment is impregnated with sprouting chia seeds. The wearer’s every exhale yields life-giving carbon dioxide to the embedded plant life, which in turn, gives off oxygen while absorbing toxins and other pollutants. Cut pieces of muslin were laid on a foam mannequin that the designer saturated with water and then planted the chia seeds, which germinated into tiny sprouts a week later and as the vestcontinued to grow, it attracted some grazing snails. Interestingly, as long as the wearer exposes it to lightand water to feed the photosynthesis process, the garment will continue to evolve like the living entity it is. By manipulating materials we’re comfortable in, and those we are not, she seeks toexplore new structural and performance possibilities for the productswe use. encourage setting up of more footwear industries in thestate. It has been envisaged to impart training to around 1.15 lakh youth per year under Haryana Skill Development Mission (HSDM) for which an outlay of Rs. 25 crore (US $ 4 million) has been proposed in 2016-17 for HSDM as against Rs. 9crore (US $ 1 million) in2015-16. The Government proposedan outlay of Rs. 828.80 crore(US $ 127 million) in BE 2016-17 for Industries andMinerals. Coming as quite a good news for the textile industry in Haryana, the State Government, in its Budget, announced exemption of tax on cotton yarn manufactured in thestate. Announcing a ‘no new tax’ Budget, Haryana Finance Minister Captain Abhimanyu made the textile industry particularly happy with its initiative in regards to cotton yarn manufacturing. Industry experts feel that this has been a good step by theGovernment, since this has been pendingfrom several yearsnow. Panipat Exporters Association President Prem Vij said, “We have been demanding for this from many years now. It had been causing a lot of paper work and blocking cash flow. But that will not happennow.” In another major move, the Government has reduced the tax rate on footwear, priced above Rs. 500 (MRP), from 12.5 percent to 5 per cent, and also exempted shoe uppers from VAT. Thiswill LittlefavourinPunjabBudgetforstate’stextileindustry The Punjab Government had reserved very little for the textile and garment industry in the State Budget in its last year in tenure. One of the main demands of the textile industry, which has been fulfilled by the State Government, was the reduction of VAT on cotton and other yarn (excluding 100 per cent polyester filament yarn)from 6.05 per cent to 3.63 per cent. With the reduction of 2.4 per cent VAT on yarn and the state having almost 120 spinning mills, the industry hopes to get a level-playing field and compete with the spinning industry in otherstates. Many mills have been facing difficulties due to unfavourable tax regime. While the industry had been expecting a reduction in VAT on finishedgoods as well, the Government’s decision to favour only yarn disappointed many in the industry. However, the areas that will benefit the textile/ apparel industry are an industrial manufacturing cluster, which is to be set up in Rajpura over a 200-acre area, and a Rs. 100 crore (US $ 15 million) allocation for improvement of small industries. State Finance Minister Parminder Singh Dhindsa proposed to launchan ‘entrepreneurship development programme’ for a period of five years. It will offer an interest subvention at the rate of 3 per cent on the loan taken to set up a micro or small enterprise, with investment of upto Rs. 5 crore (US $ 0.77 million). Therefore, for the year 2015-16, an allocation of Rs. 100 crore (US $ 15 million) has been provided for the scheme, which is part of the total outlay on the industry for the next fiscal. The Government also plans to bring in One Time Settlement policy, under which hundreds of small-scale industrial units financed by Punjab Financial Corporation are likely to be revived. There is an allocation of Rs. 10 crore (US $ 1.5 million) for Focal Points and Rs. 1 crore (US $ 0.15 million) for Northern IndiaInstitute of Fashion Technology scheme. Rs 3 crore (US $ 0.46 million) has been allotted to Fashion Technology Institute, Jalandhar as itsconstruction is in process since thepast 5 years, and classes are being organized in building of other institutes. Three new hostels are also going to be built for workingwomen. The Government’s focus seems to be on skill development and generation of employment of youth, with the proposal of spending Rs. 200 crore (US $ 30 million) on the same. NITMA President Hardyal S Cheema said, “Punjab has closeto 165 spinning mills with 4.25 million active spindles with annual consumption capacity of 6.5 million to 7 million bales. Due to higher VAT in Punjab, the textile industry was facing tough times and weaving industry preferred to purchase yarn from spinners from Himachal, UPand Uttrakhand. The spinners from neighbouring states used to sell it at 2 per cent VAT. With this reduction in VATwill help Punjab’s spinning sector compete in themarket.”

27. H O M E F A S H I O N F U T U R E SMALLER ORDERS ARE HURDLE TO ADOPT ADVANCED TECHNOLOGY MANY SMALL INTERVENTIONS CAN MAKE A BIGDIFFERENCE… If we keep aside giants of the Indian home furnishing industry and a few mid-level vertically integrated companies, the use of technology, especially the advanced technology is not very common. Mostly, standardstitchingmachinesandmachineryforvalueadditionareinuse.Oflatesomenichetechnology events, like the Home Fashion Technology Week (HFTW), are coming up with exclusive focus on home textileindustry.EvenhubslikePanipatandErodetooarewitnessingmachineryexhibitions,whichhave attracted the industry. So, is the industry now ready for technology…? Apparel Online takes a look at the groundrealities… process houses will notwork on small orders and small job-workers will notupgrade their machines as itrequires heavy investment and there are environmental issuestoo.” Anup further pointed out that when it comes to shop floor, there is requirement of some special work like piping, but specialized machines for this costs almost Rs. 2 lakh, whereas jugaad/local machines, with some modification, give the same quality work and cost just Rs. 15,000. But while using this unprofessional system the time needed to complete thework is much more due to its speed constraint. Machine suppliers are not interested to give such kinds of attachments, as it is not commercially viable for them. “Coming to the value addition segment, investment in digital printing is still an issue, so when we ask for a sample first to a digital printing job-worker, he asks for unjustified rates because our order quantities are small and insist that we directly place the order, which in fact works out more economically, but does not solve our problem with regard to sample approval. Even in Jaipur there are not sufficient digital printing job workers who can do our small orders. We manage thethings in difficult ways,” sharesAnup. Ten years old HV Exports offers bed covers,curtain, Traditionally, orders in home fashion segment have been of smaller lots and the focus has been on value addition. Investing in technology for such a business model did not make commercial sense as the investment in advanced technology is very high and the ROI period too long to justify the investment. Even today most companies, even at the middle-level arereluctant to use advanced technology and though the focus on quality, timely delivery and competitive price points has increased manifolds, the perception regarding technologydoesn’t seem to be changing, even inthe nearfuture. Representing the thought- process of many mid-levelhome furnishing exporters, Anup Pawa, Partner, HV Exports, Jaipur shared his experience, “We source grey fabric and get it printed/washedaccording to our requirement. Problem starts from here as we are totally dependent on job-work for the same. Process houses or big mills that have advanced technology, which can give required wash effects,prints and other such treatments,don’t accept our small orders; though we offer higher price, but they insist on volume. On the other hand, smaller job-workers who work for us don’t have such systems and technology. Itis a catch-22 situation, thebig cushions, etc. for Japan, UK and Australianmarket. Though mills agree that they do not feel comfortable working in small quantities, they have their strong logics which reflect on their business model and huge capacity build up which doesnot allow small quantitiesviably. However, digital printing job workers do not agree with the statement that they resist giving samples to companies working in small quantities. Parminder Singh, ManagingPartner, Digital Fab Creations,Gurgaon, who is job-working for many companies in digital printing says, “We do a lot ofsampling for our regular customers and reasonably charge for the same, which our clients understand.As far minimum order quantity is concerned, any order below 200 metres is taken as a sample and charged accordingly.” Having capacity of 1.25 lakh metres per month the company does 30 per cent of its production for home textile-basedorganizations. Though South India-based home furnishing companies do face same challenges,they have edge in some areas which can be adopted by otherstoo. N. Satheesh Kumar of Indian Texpreneurs Federation (ITF), Coimbatore says, “In my personal opinion there is lesser chance for the use of advanced technology if someone isdoing Anup Pawa, Partner, HV Exports Parminder Singh, Managing Partner, Digital FabCreations

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30. RESOURCECENTRE BUTTONS /BUCKLES LABELS / TAGS /BARCODES LABELS /TAGS EMBROIDERY FABRIC /LACES Tagging theBEST Nilesh Impex India (P)Ltd. (ManufacturersofPlasticSealTags) 8/88, Laxmi Nager, 50 Feet Road, Tirupur - 641 602, TamilNadu,INDIA Contact Person: R. Vijay Yadav - 94433 4238, Phone:0421-4336765,4336364 Email: nileshimpex@yahoo.co.in,sealtag@nileshimpexindia.com www.nileshimpexindia.com THREADS /YARN HANGERS / PACKAGINGACCESSORIES www.apparelresources.com| APRIL 1-15, 2016 | Apparel Online India 53

32. INTERCONTI PROJECTS EXPLORING DOMESTIC MARKETS; WILL START MENSWEAR FOR THE SAME TOM TAILOR GROUP PLANSTO SHUT 82 TO 100STORES Tom Tailor Group plans, which registered 2.5 per cent rise in sales to € 955.9 million as compared to previous fiscal year 2015, has plans to close 80 to 100 stores in 2016, while opening up 30 more innew locations. Dieter Holzer, CEO of Tom Tailor Holding AG said, “The textile industry is undergoing rapid changes. Digitalization is opening up whole new worlds for product and service offerings. At the same time, shopping habits are changing, andbuying decisions becoming more spontaneous. After years of strong growth, the Tom Tailor Group has entered aphase of ‘focusing’. We began responding to the changes in 2015 and plan to take a step-by-step approachin implementing the launched measures, which will improve our profitability and competitiveness in the longterm.” Nbutevensomebuying housesare ot only Indian garmentsexporters, different ball game, but we are managing it,” informed Rajkumar Rai, DMM, of the company, associated with the organization from the last 23 years and having overall experience of 35 years in theindustry. The company having experience of sourcing a large variety – knits, woven and leather products – for overseas markets, have three labels for the domestic markets – ‘Zivani’, ‘Land of August’ and ‘Urban Rust’. All these are available on famous e-commercesites.The company has its own small but advanced manufacturing unit to cater small orders with extraordinary quality. “We carry detailed composition labels on our garments like international brands, which is still not seen in many goodIndian brands. Similarly be it stitch density or any other aspect about quality, we are at par in this segment as we are used to offering the same to German buyers. This quality is our strength; also it helps create awareness for Indian customers,” reasonsRajkumar. exploring opportunities in the Indian domestic market as some of them are increasing their space in this market. Concentrating on German market for the last three decades, Interconti Projects, Delhi is now focusing more on domestic market and gradually growing in this segment. Offering its own three labels with German quality standard for domestic garment, it is also in the process to start menswear which is expected to be in stores by the festival season(Diwali). The company is also exploring un- traditional markets like Africa, Australia, and Singapore. “Germany was our main market and we had very good clients there but as overall Europe is not doing well and international markets are becoming tough, things were getting difficult and still it will take time to regain the business and make it sustainable. So doing domestic business was a good option. Though it is quitea www.apparelresources.com| APRIL 1-15, 2016 | Apparel Online India 55

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