NEW CLOTH MARKET : Apparel Export Promotion Council (AEPC) - 31st Annual General Meeting

8/8/2019 NEW CLOTH MARKET : Apparel Export Promotion Council (AEPC) - 31st Annual General Meeting

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31st AGM of AEPC held in New DelhiThe 31st annual general meeting of AEPC was held at Niryat Bhawan in New Delhi on September 30. Inhis speech, Mr Premal Udani summed up major activities of the council after taking over as the AEPC'schairman on January 7 on export performance, policy matters, compliance issues, product and marketdevelopment, trade delegations, export promotion activities, international fairs, skill development initia-tives, human resource development besides information and technology.

Mr Udani said he will continue to work with diligence for the apparel industry and hoped the governmentwill raise duty drawback rates.At the annual general meeting, Mr Udani, Mr Vijay Kumar Agarwal and MrPrashant Agarwal were re-elected to the executive committee from the western region.

From the southern region, Mr Jagadish Hinduja, Mr Manav Goyal and Mr Palanisamy were re-elected,From the northern region, Mr Rakesh Vaid and Mr H.K.L.Magu were re-elected while Mr Satish Lakhinawas elected in place of Mr G.S. Madan. Full text of Mr. Udani's speech is reproduced below :

DearMembers,

On behalf of Executive Committee of Apparel Export Promotion Council (AEPC) and my own behalf I amhappy to welcome you at the 31 st Annual General Meeting of the Council. I assumed charge as Chair-man of the Council on 07.01.2010 and am privileged to head the prestigious Council. The notice of the

Annual General Meeting, Executive Committee's report and auditor's report along with annual accountsfor the year 2009-10 are already with you and with your permission I take them as read.

Export Performance : The export performance in 2009-10 is estimated at US$ 10.71 billion as againstUS$ 10.95 billion in the previous year.There has been a decline of 2.1 % from the previous financial year.Fluctuation in the macroeconomic variables and increasing prices of inputs like cotton and yarn andslower recovery of global financial crisis has adversely affected the growth of the garment exports fromIndia. During the period April-July, 2010 exports were US$ 3464 million, recording decline of 8.1 % fromprevious year. This decline in the exports of apparel is attributed to the increasing input cost and depre-ciation of major currencies.

Policy matters : Based on suggestions and feedbacks from the apparel industry AEPC submitted itspre-budget proposal on the Direct taxes, excise duty and custom duty with a view to enhance export

competitiveness of the Indian textile and garment industry. With the efforts of the council, incentivesrequired under the market linked focus products schemes and zero duty export promotion capital goodsscheme have been included in the annual supplement to the foreign trade policy 2009-14.The need forspeedy implementation of ongoing FTAs, inclusion of more countries in focus market scheme, extensionof the benefits given to exports to US, faster clearances and extension of interest subvention scheme,etc. were stressed upon, during AEPC's various representations. New markets with good potential forapparel exports were studied and details of these markets published as Market Focus Reports to helpexporters face the slow recovery in the traditional US and EU markets.

Compliance : To improve the level of social compliance in the apparel industry, for the advancement anddevelopment of the human capital, AEPC has launched Common compliance code project. Aim of theproject is to develop a benchmark with regard to social compliance through a common compliance codethat each and every garment exporting unit in the country may attain, within a specified period of time.

The Council has got endorsement for the code from leading accreditation agencies, retail brands andother important stakeholders and is working on other implementation details like system for assessmentand evaluation, guideline and tool kit, and factory capacity building programmes. This programme willhelp in increasing the global ranking of India with respect to compliance and thus increase its preferenceas a global sourcing destination. AEPC visualizes that at the end of the programme improved socialcompliance will be an integral part of the Indian apparel sectors competitive strategy.

Product and Market Development : The council completed the first phase of the Knitwear TechnologyMission project which was initiated in 2009 to help the industry involved in the production of knittedgarments in advancement of technology and dissemination of information which are changing at theglobal level.Technology and dissemination of knowhow of the knitted technology will help garment sectorto acquire a greater share in the world export market.The government has released draft National Fibre

Policy which was debated and discussed with industry, including AEPC and subsequently gave inputs toworking group constituted by the textile ministry.This is a very welcome step which aims at improving the


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fabric base of India's textile and clothing industry and brining-in better balance between cotton and non-cotton fabrics and garments.The sudden spike in yarn and fabric prices during January-September, 2010has almost wiped-off the cost competitiveness of the garment industry.The price increase of 50 to 80 percent was strongly opposed by AEPC and many representations were made in this regard. A PressConference was also held to highlight the issue. AEPC requested the government to discourage exportof raw material, which has so far benefitting our competing countries at the cost of domestic industry. Asa remedial measure, the Council recommended withdrawal of duty drawback/ DEPB on export cottonyarn, registration of cotton exports. Most of our recommendations were well taken and implemented by

the Government.

The council has been engaging proactively on the various FTAs being negotiated, specially those that willhave significant impact on apparelexports. In meetings held on the India- EU FT A, AEPC has requestedfor speedy implementation of the FTA. FTA and PTAs are helping Indian garment exporters to acquiremore market access and diversify their export market base.

Major Activities : The Council was a part of Ministries' delegation to explore new avenues/markets andalso to promote exports to the existing markets.The Council mounted following high level trade delega-tions during the year 2009-10 and in this year so far.

High Level Trade Delegations

1. Delegation to Hong Kong (31 March - 2 April 2009): A six member delegation led by Chairman-AEPC

attended the Prime Source Forum. The forum highlighted the emerging issues of life cycle manage-ment of the textile supply chain.

2. Delegation to Mega Apparel & Textile Show in Brazil & Argentina (15-22 April 2009): A two memberdelegation attended Mega Apparel & Textile Show in Brazil & Argentina, organized by TEXPROCIL.

3. Delegation to Hong Kong (2-4 July 2009): A two member delegation comprising Chairman-AEPC andSG-AEPC visited Hong Kong to attend a meeting with Li-Fung officials.

4. Delegation to Hong Kong Fashion Week (6 - 9 July 2009): Chairman-EP visited Hong Kong FashionWeek and inaugurated the India Pavilion.

5. Delegation to Japan & Cambodia (20 - 26 July 2009): A seven member delegation led by Chairman-AEPC visited Mega Show in IFF, Tokyo, at Japan, the delegation attended the Mega Apparel andTextile Show which was inaugurated by Hon'ble Minister for Textiles. Various meetings with BunkaFashion College, JTIA and JIBCC were arranged. At Cambodia, Secretary (Textiles) joined the del-egation. Meetings with Garment Manufacturers Association, Ministry of Agriculture were arranged.

6. Delegation to Las Vegas, Curacao & Aruba (29 August - 6 September 2009): A seven member delega-tion led by Chairman-AEPC visited Las Vegas, Curacao and Aruba. At Las Vegas, Hon'ble Ministerinaugurated the India Pavilion in Magic Fair in the presence of Secretary (Textiles) and all AEPCdelegates. At Curacao, meetings were held with Free Trade Zones and members of Indian MerchantsAssociation. At Aruba delegates met Aruba Chamber of Commerce and Indian Merchant Association

7. Young Entrepreneurs Delegation to Paris & Prague (14-19 September 2009):A nine member delega-tion led by Mr. Amit Goyal, Chairman - Young entrepreneur forum visited Paris and Prague. Variousmeetings with Embassy of India and leading buyers were attended by the delegates.

8. Delegation to BSM - Australia (12-17 November 2009): The BSM - Australia was organised by

TEXPROCIL. A four member delegation led by Chairman-AEPC attended the BSM, where in AEPChad generated 24 participants for the show.

9. Delegation to Chile, Panama & Uruguay (6-15 December 2009): A five member delegation led byChairman-AEPC visited Chile (Iquique & Santiago), Panama City and Montevideo to attend variousmeetings with Embassy of India, chamber of commerce and garment importers.

10. Delegation to Kazakhstan (12-13 November 2009): Director (E&O-AEPC visited Shymkent,Kazakhstanto attend 2nd Meeting of the India-Kazakhstan Joint Working Group (JWG) on Textiles.

11.Delegation to USA (14 -18 December 2009): SG-AEPC and JS (Exports) visited USA to attendvarious meetings related to Child labour issues.

12.Delegation to Hong Kong and Thailand(29th March - 1st April, 2010): 6 member delegation led by

Chairman, AEPC visited Prime Source Forum, Hong Kong and visited Bangkok to attend variousmeetings with Chamber of Commerce, Textile Manufacturers association.


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13.Delegation to Poland, Czech Republic and UK(20-28 June, 2010): 5 member delegation led by Chair-man, AEPC visited Warsaw in Poland, Prague in Czech Republic and London in UK to attend variousmeetings with importers association/Chamber of commerce organized by Embassy of India

14.Delegation to Tokyo and Osaka (20-24 July, 2010):Secretary (Textiles), JS (Exports), SG, AEPC andExecutive Director, CMAI visited Tokyo in International Fashion Fair, Tokyo wherein AEPC partici-pated with 50 booths. The delegates also visited Osaka for various meetings.

15.Delegation to Magic Fair, Las Vegas, USA(16-19 Aug, 2010): 5 member delegation led by Chairman,

AEPC visited Magic Fair, Las Vegas - USA wherein India was focus country.

Issues raised by the Council : The Council has taken-up following issues with the Government.

1. To allocate grant of Rs. 1030.63 lacs for Common Compliance code activities for the years 2010-11and 2011 -12 respectively.

2. That export duty be re-introduced (Due to steep hike in cotton prices) and it should be raised toRs.7500 -10,000/- per tonne.

3. To allow the income tax benefits on Duty / Drawback / DEPB by way of issue of required notificationetc.

4. The additional bonus of 2% should also be extended to garment exporters at par.

5. The exports of garments to USA should also be included under Market Focus Product Scheme

beyond 30th September, 2010 at par with exports to EU-27 and should get 2% benefit.

6. Delinking TUFS from 1 % scrip to status holder.

7. To revise all industry rates of duty drawback for Readymade Garments at least @ 13.55% for cotton,@13.95% for blend, @ 14.45 for MMF of FOB value for the year 2010-11.

8. Chairman AEPC has strongly protested the reduction in drawback rates w.e.f. 20.09.2010.

Export Promotion Activities Undertaken : The Council organized following Buyer Seller Meets.

1. Buyer Seller Meet - Brazil and Argentina:The Council participated in Buyer Seller Meet in Brazil andArgentina (15th - 22nd April, 2009) with 5 participants. The event was organized by SRTEPC.

2. Buyer Seller Meet - Spain: The Council organized a Buyer Seller Meet in Spain (28th September -

02nd October, 2009) in Barcelona & Madrid with 25 participants.3. Buyer Seller Meet - Australia: The Council participated in Buyer Seller Meet in Australia (12th -17th

November, 2009) with 24 participants.The event was organized byTEXPROCIL.

4. Buyer Seller Meet - South Africa: The Council organized a Buyer Seller Meet in South Africa (4th -12th March, 2010) in Durban, Johannesburg & Cape town jointly with TEXPROCIL and SRTEPC with52 participants.

5. Buyer Seller Meet - Spain : The council organized a Buyer Seller Meet in Spain (23-28 Sept, 2010) inBarcelona and Madrid with 23 participants

6. FDI Road Shows:The road shows were held in Italy, Turkey, Switzerland, Germany and France with aview to attract foreign direct investment in textile & clothing sector. The project is fully supported byMinistry of Textiles.The overall response is overwhelming.

International Fairs : During the year, the Council participated in the following International Fairs.

1. Intersection Fashion Fair, Paris, France (6 - 8 April 2009): The Council participated in IntersectionFashion Fair with 10 participants.

2. Hong Kong Fashion Week, Hong Kong (6 - 9 July 2009): The Council participated in Hong KongFashion Week with 80 participants.

3. JFW International Fashion Fair, Tokyo, Japan (20 - 22 July 2009): AEPC participated in the IFF, Tokyowith 50 booths for the first time. The show was inaugurated by Hon'ble Minister for Textiles.

4. Sourcing at Magic, Las Vegas, USA (30 August - 2 September 2009): The Council participated inSourcing at Magic with 22 participants.

5. Intersection Fashion Fair, Paris, France (22 - 24 October 2009):The Council participated in Intersec-tion Fashion Fair with 10 participants.


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6. Hong Kong Fashion Week, Hong Kong (18-21 January 2010):The Council participated in Hong KongFashion Week with 60 participants.

7. Intermoda, Guadalajara, Mexico (19 - 22 January 2010): The Council for the first time participated inIntermoda with 15 participants

8. Sourcing at Magic, Las Vegas, USA (16-18 February 2010):The Council participated in Sourcing atMagic with 24 participants.

9. Intersection, Paris, France (13-15 April, 2010): The council participated with 16 participants.

10. Made in India Show, Dubai (8-10 June, 2010):The council participated with 10 participants.The showwas organized by FIEO.

11. International Fashion Fair, Tokyo - Japan (21-23 July, 2010): The council participated with 44 partici-pants.

12. Magic Fair, Las Vegas - USA (16-19 Aug, 2010): The council participated with 44 participants.

13. Styl Fair, Brno - Czech Republic (24-26 Aug, 2010): The council participated with 15 participants.

India International Garment Fairs : 43rd IIGF was held from 15-17th July' for the Spring/Summercollections. 312 participants participated in the fair. 501 buyers and 405 buying agents visited the fair.Business worth US$ 15 million was generated. 44th IIGF was held from 20 - 22 January'2010 for theAutumnfWinter collections. 240 participants participated in the fair. 904 buyers and 651 buying agents

visited the fair. Business worth US$ 9.66 million was generated. 45th IIGF was held from 12-14 July, 2010for the Spring/Summer collections. 305 participants participated in the fair. 776 buyers and 222 buyingagents visited the fair. Business worth US$ 26.62 million was generated.

ApparelTraining & Design Centre : ATDC the largest training provider and is expanding its reach from"fibre to fashion" and "Concept to Consumer", by developing new courses covering the entire ValueChain. Apparel Training & Design Centre is the leader and largest Vocational training provider for theApparel Industry with the capacity to train around 10,000 candidates and with plans to scale upto over40,000 candidates in the next 2 years.The ATDC network aims to provide training starting from the basicoperator level to the managerial cadre for Apparel manufacturing industry. ATDC offers 8 Flagship Di-ploma Courses (Duration 1-2Years) to improve Productivity, Efficiency and Quality and 6 Core CertificateCourses to provide Skill and Competencies (Duration 6 Months).ATDC has a resourceful faculty pool withover 250 trained faculty members offering both Flagship and Core Courses.To deliver qualitative training,ATDC regularly trains their faculty members overseas in International institutes on the emerging tech-nologies. In order to train faculty members, ATDC has set up a dedicated Apex Ed Trainers Academy.Trainers Academy also takes up training and technical consultancy for apparel industry through the "Industry Training, Consultancy and Applied Research Cell" ( ITCAR) and disseminates industry relevantcurricula required for new trade courses to be introduced in ATDC Centres I SSDPs I Skill Camps etc.Since inception ATDC has trained over 55,000 candidates who have found gainful employment in theApparel Sector

ATDC- IGNOU Community College :

The ATDC network under the aegis ofAEPC has signed a MOU with the Indira

Gandhi National Open University(IGNOU) to expand the range of voca-tional education for apparel industry andt o p r om ot e s k il l b a se d t ra in in gprogrammes for Apparel Industry. ATDChas set up 12 ATDC IGNOU CommunityColleges for offering Diploma and Asso-ciate Degrees through IGNOU systemand are in the process of setting up an-other 13 in the next few months. TheATDCs tie-upwith IGNOUundertheCom-munity College scheme is indeed a sig-

nificant step in making available properCertification System through IGNOU's

TheMoUwassignedbyAEPC'sDGforeducationand train-ingDarlieKoshyandIGNOUsregistrar(administration)U.S.

Tolia in the presence ofAEPC's chairmanRakeshVaid andIGNOU's vicechancellorV.N.Rajasekharan Pillai.


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Validation processes, offering proper progression towards Associate Degree. This initiative will havecascading impact on improving the Skill base for both the domestic and Export Manufacturing Sectors ofTextile and Apparel industries.

ATDC Distance Learning Initiative : ATDC has also joined hands with EDI, Ahmadabad to offer one yeardistance learning programme in Apparel Entrepreneurship through ATDCs.

AEPC as an Assessing Body : Gaining from the experience of running the vocational courses andevaluating the skill levels of technical workforce, AEPC has been appointed as an Assessing Body for all

courses related to Apparel/ Garment, Carpet and Kadhi Sectors for period of 3 years for all States andUT's by DGET, Ministry of Labour & Employment Govt, of India. Towards Skill Development in ApparelSector - The Govt, of India has approved the Integrated Skill Development Scheme for Textile & ApparelSector on 5th August,2010 and ATDC has been nominated as the Nodal Agency at an outlay of Rs.88Crore for training additional 40,000 personnel in the next 2 years. ATDC has designed this Initiative underATDC SMART ( SKILL for MANUFACTURING APPARELS through RESEARCH & TRAINING)TrainingInitiative.

ATDC National Head Office: ParidhanVikas Bhawan : ATDC National Head office has become opera-tional in its new National Head Office provided by AEPC in Gurgaon from September, 2010. NationalHead Office has the covered area of around 2100 sq. mt.. The ground floor would station ATDC NationalHead Office, first floor is ATDC IGNOU Community College, Gurgaon and the 2nd Floor would houseATDC Apex Ed Trainers Academy. The new building would have intelligent Data Center & Support Sys-

tems equipments to connect the 58 ATDC Centres with the Head office. Apart from that the new buildingwould house ATDC SMART Workforce Projects through MIS for proper monitoring and controlling of theATDC SMART Initiative Project and the new IGNOU ATDC Community

Institute of Apparel Management : "Institute of Apparel Management" under the aegis of "ApparelExport Promotion Council" has emerged as India's First Multi-Varsity catering to Human Resource needsof export as well as domestic Apparel sector for Junior & middle level managerial cadre. In 2009, theInstitution has established four academic tracks under which the International pathways had been suc-cessfully launched with more than 100 students pursuing UG/PG programmes in academic year 2009-10.Under international pathways, the programmes that are offeredare Under-Graduateprogrammes in "Fashionand Lifestyle Design" & "Fashion and Textile Merchandising" and Post-Graduate programmes in "ApparelMarketing and Merchandising" and "Fashion Design Management" at I AM Campuses, Gurgaon and Navi

Mumbai. With lAM's recent tie up with world's largest University, IGNOU, IAM under its Indian pathwaysfor academic year 2010-11 is offering Bachelor's degree Programme in "Fashion Design".

Documents

NEW CLOTH MARKET : Apparel Export Promotion Council (AEPC) - 31st Annual General Meeting