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Time of India
10 hours ago
- Business
- Time of India
ET Make in India SME Regional Summits: Racing past China while Trump's tariffs clear the path
Live Events The timing couldn't be better for Surat's industrial renaissance. As geopolitical tensions reshape global supply chains and AI overhauls manufacturing, this city's diverse MSME ecosystem is positioning itself to capture opportunities worth tens of billions of transformation is most visible in Surat's diamond district, where Jayanti Savaliya of the Gem & Jewellery Export Promotion Council (GJEPC) oversees an industry that has evolved from manual processes to AI-driven precision in just two decades."Changes that took a decade earlier are now happening in two years," Savaliya shared, describing how robotic machines now handle diamond sorting while AI reduces jewellery design rendering from days to minutes. Savaliya was part of the panel 'From looms to labs: How Surat's MSMEs can lead India's next wave of industrial innovation'. The discussion was one of several insightful conversations at the ET Make in India SME Regional Summit in Surat, which took place on July 18. The summit had IDBI as banking and lending partner and Canon as tech other panellists were: Ashish Gujrati, Managing Director, Aditya Textile Solutions and Past President, SGCCI; Bikash Chandra Naik, Zonal Head, NSIC; and Prashant Patel, Past President of FISME and Director, RK Synthesis former President Trump's trade policies have become Surat's secret weapon. His tariffs hit China with 40% duties on jewellery while India faces just 16-26%, creating what Savaliya called "a huge opportunity" as manufacturing shifts from Chinese factories to Surat's 600 new jewellery tariff advantage extends beyond diamonds. Ashish Gujrati pointed to recent developments in Bangladesh, where a 35% tariff has global garment buyers scrambling for alternatives. Surat, which produces 65% of India's man-made fiber, stands ready to fill the numbers are staggering: Surat's garment industry is growing 25% annually, and the city has a $30 billion export opportunity in man-made fiber textiles alone. With global MMF exports projected to grow from $7.7 billion to over $73 billion, Surat's comprehensive ecosystem — spanning the entire value chain within 45km — positions it as a natural city's MSME transformation runs deeper than favourable trade winds. Prashant Patel, described a fundamental shift in business philosophy. "Historically, Indian companies avoided R&D, opting for copy-paste models," he noted at the ET SME Summit panel in Surat. "But since Covid-19, this mindset has changed."Today, Surat companies invest in developing new technologies, not just new products. This includes process optimisation that reduces raw material usage and addresses pollution concerns, which are critical factors for accessing international markets increasingly focused on government infrastructure supporting this innovation has evolved too. Bikash Chandra Naik spoke about NSIC's Single Point Registration Scheme, which reserves 25% of government procurement for small competitive edge increasingly lies in its skilled workforce. Despite China's scale and cost advantages, nine out of 10 diamonds globally are still processed in Surat, a testament to the city's unmatched expertise in precision advantage is expanding beyond traditional sectors. While Jaipur currently dominates gemstone processing, Savaliya underlined the untapped potential for Surat to leverage its existing infrastructure and skilled labour in this adjacent obstacles remain. Land costs in Surat now exceed those in competing industrial centers like Bharuch and Vapi. Skilled workers command premium salaries that stretch MSME budgets, while the lack of shared R&D infrastructure forces companies to either invest crores of rupees in equipment or relocate to areas with better common challenges haven't dampened ambitions. With the PM MITRA textile park awaiting implementation and India's global textile trade share poised for recovery from its current 2.94%, Surat's MSME ecosystem appears ready to capitalise on a convergence of technological advancement and geopolitical the panel discussion at the ET Make in India SME Regional Summit - Surat revealed, the city's transformation from a traditional manufacturing hub to an innovation-driven ecosystem reflects a broader shift in Indian industry, one where MSMEs aren't just adapting to global changes, but actively shaping a world where supply chains are being redrawn and AI is redefining manufacturing, Surat's diverse industrial base and rapid technology adoption may well position it to lead India's next wave of industrial innovation. The ET Make in India SME Regional Summits , ET MSME Day, and ET MSME Awards are flagship initiatives to celebrate the versatility and success of India's MSME sector. If you lead or are part of a micro, small, or medium enterprise, register for the ET MSME Awards 2025 before August 31, 2025.
Straits Times
2 days ago
- Business
- Straits Times
Airwallex launches investment product to help businesses grow idle cash
Find out what's new on ST website and app. The new Airwallex Yield product is aimed at small business customers or customers on Airwallex. SINGAPORE - Fintech firm Airwallex has unveiled a new investment product aimed at helping businesses earn returns on unused funds, entering a competitive market where rivals also court companies seeking better yields on spare cash. Rolled out on July 28, the product invests in money market funds (MMFs) and offers returns of up to 1.29 per cent per annum for Singapore-dollar funds and up to 3.84 per cent for US-dollar funds. The new Airwallex Yield product is aimed at small business customers or customers on Airwallex, said Mr Arnold Chan, Airwallex's general manager for Asia-Pacific excluding China. 'Airwallex Yield will allow businesses to earn returns on their surplus Singapore-dollar and US-dollar funds by investing through investment-grade money market funds, while maintaining access to both liquidity and control over their cash,' he told The Straits Times. A MMF invests in a range of liquid, low-risk assets, which typically include cash and short-term instruments such as treasury bills, commercial paper, and certificates of deposit. Airwallex's yield product invests in several Goldman Sachs and Fullerton funds. The Singapore launch follows earlier rollouts in Australia and Hong Kong. Since its November 2023 debut in Australia, the product has attracted about US$200 million (S$256 million) in funds. Airwallex offers a suite of financial products for businesses, including global business accounts, cross-border payments and expense management tools. The firm said it is seeing a huge demand from customers in Singapore who want to earn returns while maintaining flexibility to move funds quickly. Over 80 per cent of its annual revenue comes from customers who use more than one Airwallex service and the firm expects to cross-sell the new product to its existing customers. The firm also plans to target technology companies, especially those backed by venture capital and holding substantial idle cash reserves, as well as e-commerce players and retailers that receive customer payments upfront but pay suppliers later. By investing these interim funds, they can generate additional returns. Trading businesses involved in importing and exporting can also benefit by putting their idle cash or working capital to work, said Mr Chan. He added that withdrawals are flexible and settlement is typically completed within one business day, provided that cut-off times were met. Airwallex joins a competitive field in Singapore, where firms like StashAway and Syfe already offer MMF products to businesses seeking returns on idle cash with flexible access. Most MMFs in Singapore invest in fixed deposits, government securities and commercial papers. Airwallex customer GlobalTix, a ticketing software and distribution platform for the tourism sector, said that it considers flexibility, liquidity, tenure and yield as key factors when deciding how to deploy idle cash. GlobalTix's co-founder and chief operating officer Chan Chee Kong said fixed deposits are less suitable for the company because they tie up funds for a set period – limiting access when quick payments to suppliers or vendors are needed. 'I need to have that flexibility around moving my funds in and out,' he said. Another key consideration is managing different currencies given the global nature of the firm's business, he added. He noted that Airwallex is not the first to offer the solution, adding that GlobalTix currently uses a similar offering from a competitor. However, if GlobalTix were to use Airwallex's new offering, it would benefit from having all its financial tools on a single platform – making it easier to monitor and manage its cash flow, he said. Lovet, a homegrown fashion brand and Airwallex customer, is considering the new yield product, its director Lee Wei Leong said. With interest rates declining, he said the company is exploring options. 'If we leave our money in a normal savings account, the value of the money is going to be eroded by inflation.' As an SME without venture capital backing, liquidity is key. If Lovet were to open a new outlet, it will need to be able to cash out quickly to fund the expansion, he added.
Time of India
2 days ago
- Business
- Time of India
SYNTHETIC TAKEOVER
There is a synthetic transformation under way in Tirupur, India's knitwear capital that accounts for 60% of exports in the segment and clocks $4.5 billion in annual business. Targeting to double its turnover to $10bn by 2030, the cluster is betting big on manmade fibres (MMF), aiming to increase MMF's share from the current 10% to 30%. Manmade (artificial/synthetic) fibres are made using chemical processes, unlike natural ones derived from living organisms. "The 'China Plus One' sentiment is driving global sourcing strategies. So, buyers are seeking alternatives in Bangladesh, Vietnam—and increasingly India, especially Tirupur. We hope to tap emerging markets in Africa and Latin America too," said Sunil Jhunjhunwala, MD, Techno Sportswear (P) Limited and Vice-Chairman, CII Tirupur. The region will soon turn into a focussed market for MMF garment markets. "The idea is not to abandon cotton, but manmade fibres will grow faster—maybe five to six times by 2030," said Arun Ramaswamy, CEO, New Man Exports, who also serves as the chairman of Tirupur Exporters Association's (TEA) MMF sub-committee. "The FTA with the UK, Canada, Australia, will also bring in good business opportunities," he said. There are more than 5,000 units in Tirupur. "From blended polyester-cotton-lycra or cotton-lycra to 100 percent rayon, every unit has undertaken a marginal production in MMF now. We are focussing exclusively on sports, athleisure wear and technical textiles. The usage of cotton in the sports segment is gradually dwindling, while everyone's gaze is towards MMF," he adds. You Can Also Check: Chennai AQI | Weather in Chennai | Bank Holidays in Chennai | Public Holidays in Chennai Today, industries in Tirupur import fabric from China, make garments and export them. "The next step for us is to make the yarn, like polyester and nylon filament, lyocell fibre, in India itself. Then, we will need to manufacture the raw materials locally, from petrochemicals," explained Jhunjhunwala. "Materials and equipment make up nearly one-third of the input cost for MMF exporters. With knitting and finishing capabilities still catching up, building an integrated MMF value chain is a priority. " Tirupur needs to achieve in 3-4 years what China and Taiwan did in 15–20 years. "That means getting our learning curve right—investing in technology, training labour, and incentivising processing units. Everything from the yarn to the finished product should be from here," he explained. This is also why Tirupur is looking up to Taiwanese firms—global leaders in the MMF ecosystem, for technical expertise. This year's Tamil Nadu-Taiwan technical textile partnership summit, which was recently held at Coimbatore focussed on processing expertise. "These partnerships could help Indian exporters move up the value chain, especially in fast-growing segments like sportswear, activewear, workwear, rain jackets, industrial gear. " Those who spearheaded the move to adopt MMF include A Sakthivel, Chairman, Poppys Knitwear (P) Ltd, who serves as honorary chairman, TEA, and vice chairman, apparel export promotion council (AEPC). K M Subramanian, founder-chairman of KM Knitwear, and president, TEA, is among the other industry leaders championing MMF, said Ramaswamy. Still, challenges remain—especially skilled labour, and more infrastructure to tap. "The attrition rate is high. We need houses/dormitories for labourers to retain them. Besides, we need more plug and play facilities for the MMF," said G R Gopikumar, convenor of the textile panel for the confederation of Indian industry (CII), Tamil Nadu. There is also a need to create more hubs in and around Tirupur. "Basic product categories like babywear and undergarments could be shifted to newer hubs like Erode, Karur, and Salem—allowing Tirupur to specialise in high-value, technical exports. " There has been assistance from the govt front as well. An official tells us, "Presently, there are subsidies under the industrial and MSME policies. Now to promote R&D in technical textiles and MMF, we have announced a 1 crore scheme. Industries and academic units can apply for this. But the final product should be commercializable. This research will help in coming out with raw materials." The govt has also launched the Tamil Nadu Tech Textile Mission. "This is to offer end-to-end support. We will empanel consultants with whom the industries can engage to set up tech-textile units," the official added.
Time of India
4 days ago
- Business
- Time of India
UK FTA: Textile sector needs to localise, scale up to win big
Chennai: The new trade deal with the UK has opened a significant opportunity for the $1.45 billion Indian readymade garment (RMG) industry to capture a larger share in the lucrative market but the success hinges on developing local value chain, especially of man-made fiber (MMF) and capacity for mass production. Tired of too many ads? go ad free now Industry experts believe this is crucial for them to be globally competitive and realise the full potential of the deal. Indian apparel exports are expected to have 9% cost advantage, with the tariff cut making it competitive with Bangladesh, Vietnam and China. Indian RMG export is expected to double to $3.5 billion in the near future, according to Dr A Sakthivel, vice chairman of apparel export promotion council (AEPC), a trade body. "Out of this, Knitwear exports alone are expected to increase from $ 0.8 billion to nearly $ 2 billion, accounting for around 70% of total RMG exports to the UK," he said. The UK dept of business and trade, in its sectoral impact assessment report, estimated Indian textile, apparel and leather imports to increase 85%. Indian companies have been losing market share to Bangladesh due to tariff differential. Despite fluctuations, India ranks fourth among largest garment import sources in the UK Sakthivel said the deal offers an opportunity to gain market share from competing nations and to diversify its product portfolio. The Indian garment exports predominantly being cotton products like T-shirts, summer wear and baby garments. Exporters TOI spoke to stressed the need to expand into the fast-growing athleisure and winter garment categories. They called for increasing capacity in MMF supply chain from yarn and dyeing units to processing units which requires increased mechanisation. "In addition to the PLI for MMF and technical textiles, which caters to larger manufacturers, the union govt needs to incentivise small and medium scale manufacturers to invest in capital equipment (with the ticket size of Rs 10 crore to Rs 30 crore) and help them building larger facilities to achieve economies of scale," says Alexander Neroth, director of NC John Garments, an exporter from Tiruppur. Tired of too many ads? go ad free now These are crucial for competing with Asian majors in quality and price, he adds. Deloitte in a report said it would be important to evaluate strategic shifts in the supply chain to reap the full benefits of the CETA and mitigate risks. Currently India relies on imports from Taiwan and China for MMF. Indian footwear market to get more competitive, say makers Leather products and synthetic footwear makers say the deal will make Indian exports competitive. J Rafiq Ahmed, chairman of Kothari Industrial Corporation, who is working with global footwear brands said the deal will pave the way for increased sourcing of synthetic footwear for the UK market, as part of global shifts. He added that Indian makers need to focus on sustainability and aligning with global norms. GLC Vijayan, managing director of Good Leather, exporter of formal and children's leather shoes said the products imposed 16% duty are now duty free and expect a boost in the order this season.
Fibre2Fashion
21-07-2025
- Business
- Fibre2Fashion
US' textile & apparel import volume rises 6.59% in Jan-May 2025
Insights US textile and apparel imports rose * . * * per cent year-on-year to * * . * * billion SME during Janâ€'May * * * * , driven by higher volumes in both apparel and non-apparel segments. . per cent year-on-year to . billion SME during Janâ€'May , driven by higher volumes in both apparel and non-apparel segments. Cotton and MMF imports also increased. Exports grew marginally by * . * * per cent, though yarn and fabric shipments declined. . per cent, though yarn and fabric shipments declined. In * * * * , imports surged * * . * * per cent, while exports fell * . * * per cent amid ongoing tariff uncertainties. To read the full story, become a PRIME member today. All Corporate Members and TexPro Subscribers are eligible to access F2F PRIME CONTENT using the same login credentials. Latest News Insights Latest News Insights Exclusive Industry Articles & Features Exclusive Industry Articles & Features Detailed Article Analytics & Insights Digital Edition of Fibre2Fashion Magazine Digital Edition of Fibre2Fashion Magazine Get notified in your mailbox
