Good start for Lilliput

Lilliput, the key player in the Kidswear industry won two prestigious awards in January 2008. The 8th Annual Lycra Images Fashion Awards held in Mumbai adjudged Liliput as the ‘Most Admired Kidswear Brand of the Year’. The kidswear category leader also walked away with the prestigious 'Reid & Taylor Retail Excellence Award' in the Kidswear category at the 'Reid & Taylor Awards for Retail Excellence' organised by the Asia Retail Congress 2008 held in Mumbai.

Thrilled Managing Director of Lilliput Kidswear Ltd, Mr. Sanjeev Narula said, “It is a moment of great pride and honour for us to have won these awards. Our high quality, designs, hard-working team and strategic tie-ups have won us this acclaim.”
Lilliput was recently also bestowed with CMAI brand of the year in kidswear category.

Trade with EU to touch $572 bn under FTA by 2015, FICCI

India’s trade engagement with EU could touch $572 billion under the FTA which is likely to be fully implemented by 2015, according to latest FICCI study on “India-EU Trade & Investment: Current Status and Issues”.

This engagement includes both trade in goods and services, in which trade in services would be having a major share of around 57% of the total trade.
The study stated that India’s trade in goods could be around $251 billion and trade in services around $320 billion with EU under the FTA by 2015.

However, FICCI study expressed concern over the growing trade deficit in goods between India and EU. FICCI said that trade deficit which was $492 million only in 2001-02 has spiraled to $3 billion by 2006-07, i.e. over 6 times. FICCI study also emphasized the need for resolution of number of issues under the FTA negotiations for increasing the share of India’s exports in EU market, both for goods and services.

Currently, India’s share is only 1.8% in EU’s world imports of goods, and only 1.3% in EU’s world import of services, FICCI pointed out.

Some of the important barriers to trade and investment faced by Indian business in EU market are lack of harmonization of micro-biological standards in EU countries; costly certificates required for exporting fruits to EU; costly conformity procedures for CE mark; aflatoxin limits in groundnuts; delay in approvals by EC for Indian milk product units; Visa issues; lack of recognition of qualifications and work experience; VAT etc, according to FICCI study.

Gokaldas Exports to Set up Units in Hubli and Mangalore

Gokaldas Exports, in which the US based equity giant Blackstone has picked up a 50.1 percent stake, is planning to set up manufacturing facilities in Mangalore and Hubli, Karnataka. Shortage of labour and high cost of land was the main reason behind setting up units outside Bangalore. The upcoming units in Mangalore and Hubli are expected to manufacture around 2 mn units each per year.

The company, currently, has 49 manufacturing locations across South India. Last year, the company set up 6 new units including the SEZ at Chennai.

House of Pearl to buy Hong Kong Simple Approach

House of Pearl Fashions Limited (HOPFL) has signed a Memorandum of Understanding (MOU) to acquire 75% stake in the Hong Kong-based marketing company, Simple Approach Limited.

The Company has been working at strengthening its distribution muscle in the overseas markets.

The acquisition will benefit the Company in expanding its customer base into high fashion mid market segment. Simple Approach is supplying to value and mid market retailers in the UK and the USA and will be clocking revenues of Rs.80 crores in the current financial year, which are expected to grow to Rs.100 crores in the FY 2008-09 and projected to grow to Rs. 200 Crores by FY 2010-11.

This Company has an excellent customers base and very good design team. By leveraging HOPFL’s sourcing capabilities. it will be offer wider product ranges at very competitive prices and can easily achieve 25% annual growth in its business every year for next 3 years.

HOPFL is the only company in this sector with presence in more than 10 countries and controls complete supply chain from design & development to delivery to the customer’s doorsteps.

The Company is looking at entering fashion retailing in India with plans of launching a German Brand Lerros.

Apparel Exporters in for Tough Times : CIAe

Apparel exports recorded a decline of about 14 per cent in 2007 due to rupee appreciation and is expected to dip further by about 8 per cent in 2008. India’s biggest importer for the RMG sector is USA and with recession looming large the repercussions are already being felt in the Apparel sector.

There is a 10% drop in exports form April – November 2007 in Rupee terms in USA alone as compared to a 18% growth from China. Threat of American recession and competition from China, Vietnam and Bangladesh are expected to be the dominant concerns in 2008.

The cost of production is believed to be 20 per cent lower in these countries compared to India. In India, costs rise by 5 per cent per annum. While India immediate threat has always been form its neighbors like Nepal, Bangladesh and Srilanka exports form these countries have been growing infact even countries like Indonesia and Vietnam which never posed a threat to India have now starting outperforming expectations.

According to Mr.Amit Goyal, President Confederation of Indian Apparel Exporters ( CIAe) even exports to EU have taken a beating where it is down by approximately 4% as most of the volume business has gone to Bangladesh due to the Duty Free concession enjoyed by it and only the small and quick turn around business is coming to India.

Budding designers to present A/W 2008 collection at WIFW

Fashion Design Council of India and ITC Wills Lifestyle Ltd
Fifteen “new” designers will exhibit their collections for the first time at the Wills Lifestyle India Fashion Week, Autumn/Winter 2008 event. Some of these designers are well-known names from the fashion industry who have showcased their collections in India and overseas.

The names of these 15 designers are as follows:

1. Amit GT
2. Azara
3. Charu Parashar
4. Ekru by Ekta Jaipuria & Ruchira Kandhari
5. Gayatri Khanna
6. Khushali Kumar
7. Lecoanet Hemant
8. Nitin Bal Chauhan
9. Rahul Reddy
10. Ankur & Priyanka Modi
11. Atsu Sekhose
12. Aruna Singh
13. Amishi Dhanuka
14. Kokommo
15. Rinaldi Designs

Nine of these designers will be showcasing their collections on the WIFW runway, while Ankur & Priyanka Modi, Atsu Sekhose, Aruna Singh, Amishi Dhanuka, Kokommo and Rinaldi Designs will display their creations at the exhibition stall.

Announcing the names of the designers participating at the WIFW A/W 2008, Rathi Vinay Jha, Director General, FDCI, said, “I am extremely delighted to announce the names of these 15 dynamic and vibrant designers, who will exhibit their collections for the first time at the Wills Lifestyle India Fashion Week.

Some of these designers are well-established names from the fashion industry, and I am very pleased that they will be showcasing their collections at WIFW.”

Sumeet Nair, Executive Director, FDCI, said, “We have the highest number of ‘new’ designers showcasing their collection at the WIFW this year.

Raymond to launch New Brand

Raymond is entering the readymade segment under the sub-brand of ‘Raymond Finely Crafted Garments’ targeting males in the 25-45 age group pegged at a slight premium to its existing men’s readymade brand of Park Avenue.

On the occasion, Mr Gautam Hari Singhania, Chairman & Managing Director, Raymond Ltd, said that today they are being allowed to manufacture readymade garments as the reservation has been removed in the small scale sector.

He announced that the company plans to open 30 exclusive shops under the brand of Raymond Finely Crafted Garments in the next three years and would also use its existing distribution network spanning 170 Raymond shops and 16,000 points of retail to vend the new brand.

Mr Shreyas Joshi, President, Raymond Apparel pointed out that the menswear market is estimated at Rs 37,000 crore and comprises 35 percent of the apparel segment. With Raymond Finely Crafted Garments they are targeting the ‘complete man who has an eye for detail and has arrived in life’.

However, the exclusive range of Raymond Finely Crafted Garments will initially be available at 125 points of sale in its first year of operations.

Domestic textile industry facing acute shortage of skilled labour

Domestic Kancheepuram weavers are abandoning their ancestral occupation for more sophisticated jobs in newly developed manufacturing units. The once thriving business in Tamil Nadu is facing a haunting problem.