Dear Member, 

I am glad to inform you that the Council's unique Product Development Programme for Synthetic Filament Fabrics has been launched by Shri Shankersinh Vaghela, Honourable Union Minister of Textiles, in Surat on 8th August, 2007 at a gathering of the member-exporters of the Council from the region and media persons. It was a unique occasion for us, as this was the very first initiative of the Council on product development for exports, which is expected to play an increasingly important role in the coming years. As you are aware, Surat is the centre for the production of synthetic fabrics and I hope that the Project will help us to take the exports from Surat from the present level of Rs. 900 crores to Rs. 1800 crores by the year 2010. The ultimate aim is to establish Surat as a globally known sourcing centre of synthetic fabrics both for the international buyers and the domestic garment industry. I take this opportunity to thank Shri Shankersinh Vaghelaji, Hon'ble Union Minister of Textiles, for taking time off his busy schedule to launch the programme and the encouraging words he said on the occasion about the enterprising exporters of the region and the activities of the Council. Shri J. N. Singh, Textiles Commissioner, was also there to grace the occasion and he also whole-heartedly appreciated this initiative.

We are also working on schemes for other products, where we feel that there is a gap and we must increase our product basket. Soon, these will be finalized.

I would also like to remind you that Tex-Summit, which will be held in Vigyan Bhawan on 31st August and 1^st September, 2007 will be a conclave to deliberate upon the areas of concern in the textile sector and draw up a roadmap for future growth. The summit is important as it is a platform where the stalwarts of the industry and the leading lights of the Government will come together in an intellectually stimulating atmosphere to discuss the problems in depth and come out with creative suggestions. Detailed information about the Tex-Summit, including the programme, participation form and Advertisement Reservation Form is given elsewhere in this Newsletter. I appeal to members of the Council to take part in the Summit and give advertisement support. Amidst the series of seminars, promotional and product development programmes and other new initiatives of the Council, one worrying factor is the continuing strengthening of the Indian rupee, which is steadily eroding our competitiveness. The attempts by the Government to rein in the rupee seem to have failed and the exporters are largely left to themselves to fend off the adverse effects. In view of this, we will have to seriously think of new ways to maintain our competitiveness by currency hedging, product innovation, cost reduction and increased marketing efforts and thus protect our market share. No doubt, we are pleading with the Government that the measures taken by them are not sufficient and recently, we have apprised the Hon’ble Minister about this as well.

I may also inform you that the provisional data available for April-May, 2007 shows growth in exports of almost 48% in dollar terms. However, the growth in rupee terms is only 37%, clearly indicating the adverse effects of the strengthening rupee on our exports even at the beginning of the financial year. Now, the irony is that these were the orders booked in the beginning of the year 2008 and so, the figure looks good. In fact, this is where the members have lost lot of money while getting realization.

A matter of serious concern is decline in growth of exports of polyester-viscose and polyester-cotton fabrics. However, exports of yarn have out-performed the exports of all other products. Another feature is the emergence of markets like Turkey, Brazil, Indonesia, Germany and Belgium, which have witnessed growth. I request the members to note the emergence of new markets and tap the same.

With warm regards,  

Yours sincerely

(SANJEEV SARAN)
CHAIRMAN