Presidential Speech of Mr. Kishore Khaitan, President, At the 74th Annual General Meeting of ITAMMA

 

Respected, Mr. Madhav M. Deshmukh; beloved colleagues, distinguished guests, friends from the media

 

I am delighted to extend a warm welcome to you all at the 74th A G M of the INDIAN TEXTILE ACCESSORIES & MACHINERY MANUFACTURERS’ ASSOCIATION. Our association, which now  enters its golden jubilee year and whose foundation was laid in the pre-independence era, has an illustrious history of the serving the nation and the textile industry by furthering the cause of development of technology, supply of latest machinery, parts and services and promoting exports. This is the day when we remember our illustrious, visionary and generous founders and elders who have laid a solid foundation for the association with their dedication, vision and generous endowments. It is a result of their leadership and blessings that ITAMMA has a corpus of more than four crores of rupees and is nearly 378 members strong. It has associations in India as associate members and MOUs with partner associations in five Countries and with eighteen institutions in India.

 

It gives me a great pleasure to have invited ­­­­­­­­­­­­­­­­­­­­­­­­ Mr. Madhav M. Deshmukh is Head of SME – Business Enterprises of M/s. Mahindra & Mahindra Financial Services Ltd. (Mahindra Finance)       as our Chief Guest on this momentous occasion.

 

Mr. Madhav M. Deshmukh is Head of SME – Business Enterprises of M/s. Mahindra & Mahindra Financial Services Ltd. (Mahindra Finance) from September, 2011 onwards.  He joined to set up SME vertical in Mahindra Finance.  Developed and set up Policies, Processes & Systems for entire SME function.  He is handling Business Sourcing, Credit, Operations and Monitoring.  He has developed a team PAN India.

 

Indian Textile Industry-current scenario

 

The Indian textile industry has ancient roots and has been a global leader for centuries, which attracted the British and others to our shores. However, we lost our pre-eminence due to advent of the industrial revolution but though the industry today faces stiff global challenges, it currently has the opportunity to regain past glory and its rightful place as a global leader in textiles. Indian textile industry has the potential to grow its global market share from under 5% to over 15% by 2025, not by imitating the Chinese model, which incidentally is currently facing its own challenges, but by exploiting its own strengths of innovative skills, cultural heritage in design, large domestic production and market base and lower costs.

 

The government policies now rightly focus on value added sectors such as garmenting, made-ups, finishing, knitting and weaving, besides technical textiles, as opposed to more focus on fibre and spinning in the past. Spinning mills are increasing looking at going up the value chain and becoming composite units. Implementation of GST, though causing some disruption in the short term, will help the consolidation, growth and competitiveness of the textile industry across the value chain.

 

Indian Textile Engineering Industry (TEI)

 As the industry moves more into innovative, value-added products, the demands on the machinery and spares manufacturers for quality, innovation, on-time service, turnkey solutions, R&D are increasing rapidly. In order to play a meaningful role in the future of the textile industry, the textile engineering industry has to (i) adopt best practices in manufacturing to become competitive in terms of cost and quality, (ii) undertake R&D to develop new products to meet ever-changing demands of users, (iii) partner with user-industry to assist them in developing innovative products for their markets and (iv) to improve their cost competitiveness, adopt ethical business practices to conform to the increasing stringent regulations of international markets and MNC clients.

 

ITAMMA has a critical role to play in helping its members transform themselves from small, owner managed and low technology suppliers into fast growing, innovative, high technology and global players that meet the requirements of their clients through offering state-of-the art solutions instead of older technology, reasonable but inconsistent quality and slow response in terms of deliveries and service. This is no mean task but a very important one and ITAMMA has taken several initiatives to address this challenge and the demands of the day, which I shall dwell upon later in my address.

 

The Indian textile industry’s demand for machinery and parts is about Rs. 15,000 crores annually, nearly 70% of which is imported. The textile engineering industry (TEI) produces about Rs. 6500 crores worth of products while operating at about 65% capacity utilization; 25% of this annual output is exported. In order to achieve the goal of MAKE IN INDIA by serving 65% (instead of current 30%) of the industry’s demand through indigenously produced machinery by 2025, the TEI has to increase its production more than four times in eight years to Rs 28,000 with exports at 25% being worth Rs. 7000 crores. That’s both a huge opportunity and a daunting task. This is, however achievable through (i) Acquisition of latest technology through joint ventures or license agreements, (ii) aggressive R&D efforts with reputed indigenous technology institutions, (iii) subsidized soft loans and policy support from the government for investment in expansion and upgradation of manufacturing facilities and, most importantly, (iv) an eco-system for innovation involving all four stakeholders (mills, machinery suppliers and service providers, technical institutions, government) working in close cooperation is what is required to make this dream a reality.

 

To promote the concept of innovation ecosystem, ITAMMA took the initiative to organize Workshops on “Creating an Eco-system for innovations & technology development in Textile industry” at Nagpur, Rajkot, Bhilwara and Ludhiana which received overwhelming response, active participation and valuable suggestions from the Mills, Machinery and parts manufacturers, Consultants, Academicians & Govt. bodies. We will continue this initiative in other parts of the country and compile a report that will be presented to Industry Ministry (DHI), Textile Ministry, NITI Aayog, CITI, etc. for implementation.

 

Building the competitiveness and scale of TEI

 Most of our members are in the small scale sector while a few are in the medium scale. Only a handful is in the large scale. To build competitiveness and scale, members first need to grow their self-belief, passion and ambition to aim big and set ambitious targets of growth. I would like to break the monotony of the speech and show you a short inspiring video.

 

Our chief guest tonight aims to inspire our members though real life examples of how some companies in the automotive sector have grown. To achieve rapid growth, members need to prepare a strategic plan with SWOT analysis and GAP analysis through expert assistance. ITAMMA is providing support and guidance to such members for adoption the best practices in manufacturing, such as LEAN Management, TPM, ZERO DEFECT ZERO EFFECT (ZED certification) through seminars, workshops, LEAN Clusters, expert deputation, etc.

 

In order to boost R&D efforts in TEI, we have reframed the concept of Common Facility Centres Scheme of the government (CFC) into Centres of Excellence (CoE) in four textile centres of India viz at Coimbatore, Ahmedabad, Maharashtra and Ludhiana/Bhilwara (TBD) jointly with Kumaraguru College of Technology (KCT), Coimbatore; IIT Gandhinagar, Ahmedabad and NMIMS, Shirpur (or DKTE), as knowledge partners.

 

Instead of creating an expensive facility which is difficult to maintain or make viable, we plan to make use of existing R&D infrastructure available with existing institutions and use the CoEs to facilitate conceptualization and implementation for projects, training of technical staff of manufacturers, organizing workshops and seminars, facilitation in obtaining government subsidies for projects, etc. They will also facilitate trials and feedback from user industry to enable rapid commercialization.   We look forward to receiving requisite financial support from the government in setting up these CoEs.

 

On 30th October, 2015 ITAMMA launched its ITAMMA Expert Panel with the aim to have 400 Technology experts in the fields of Textiles, Metallurgy, Rapid prototyping and 3D printing, Mechatronics and Low Cost Automation, Product Design, etc. on this Panel. These experts will work in close coordination with the CoEs to serve the TEI industries. I am proud to inform that until now we have registered 78 Experts.

 

Ethical Business Practices are a Journey. Increasingly, major customers demand ethical and socially responsible conduct from suppliers and make it mandatory to adopt the code as eligibility for doing business. ITAMMA wants to encourage members to adopt such practices, which will help them in the growth of their business through adoption of best practices and professional systems and structures while also promoting responsible business.  We believe good ethics is good business! 18 of our members have already signed the ITAMMA CODE OF BUSINESS ETHICS and many more are expected to sign in the coming months.

 

Initiatives for Business Promotion for Members

 

ITAMMA has been working tirelessly to organize events, delegations, mill visits and programs, in major textile centres in India and abroad, for interaction of members with the user industry to showcase their latest developments, understand the user needs and changing requirements, develop contacts and relationships with reputed mills – all at a very affordable, low participation cost.

 

ITAMMA regularly participates in Textile machinery exhibitions in India and abroad to showcase the technology, capability, product range and international presence of the Indian TEI and also organizes Networking Dinners for closer interaction between members and senior executives and entrepreneurs from the user industry. ITAMMA is a founder member of India ITME Society that organized the world famous 10th INDIA ITME EXHIBITION in Mumbai from 3rd to 8th December, 2016 where more than 100 of our members participated and ITAMMA provided them with many services to ensure a successful exhibition for them. To promote building of a strong BRAND INDIA, a redesigned ITAMMA booth was setup, ITAMMA VOICE was launched with great response and nearly 7000 copies were distributed to visitors, many dignitaries were felicitated and MOUs signed.

 

To facilitate closer interaction with user industry as well as engineering industry in India and abroad, ITAMMA has signed MOUs with 4 industry organizations in 3 countries this year besides the existing 26 MOUs signed in the past. It is with a sense of pride that I announce that ITAMMA and VINATEX of Vietnam have in principle agreed for ITAMMA to setup a Service and Training Centre in Ho Chi Minh City, which while helping the Vietnamese textile industry, will provide a great platform for our members to increase their exports to Vietnam. ITAMMA aims to setup such centres in various Asian and African countries in the future.

 

Membership engagement

 

The association is for the members and ensuring that they get benefit from and contribute to the ITAMMA is a very important objective and several initiatives were taken during the year to engage more closely with members. Membership Fellow Meets were organized at Mumbai, Coimbatore, Ahmedabad followed by a Presentation by the Guest Speaker.  ITAMMA members were given an idea about the policy and programs of the Association proposed to be organized during the year 2016-17. 

 

Members were invited to record their interest in the types of programs they wish to promote and develop the activities of ITAMMA in future. Members were encouraged to actively participate in sub-committees, events and delegations, encouraged to come forward and participate in export cells of their region and even to stand for elections to contribute actively in association’s further development.

 

To serve its North India members better and increase membership, participation and involvement of such members, ITAMMA opened its office in Chandigarh during the year and the office has worked tirelessly in successfully organizing ITAMMA events in the northern region and also in attending several important government meetings in Delhi.

 

Engaging with the Government

 ITAMMA has sent important representations to the government to address the issues and challenges facing the TEI. We have also participated in meetings with the government and are a member of several government committees such as development council for textile industry, capital goods skills council, State Excise Committee, BIS.Our new office in Chandigarh will ensure closer liaison with the government to promote policies for supporting the growth and development of the textile industry and the TEI.

 

Administration Issues:

 For any Association to play an effective role, a strong secretariat is a prerequisite. Proper staff recruitment was done and some is yet to be done. In addition, certain management practices were changed to bring about more accountability, result orientation, transparency, higher motivation and desired performance.  I am happy to note that in spite of many staff changes and inadequate strength, the secretariat has demonstrated exemplary commitment and hard work.

 

Now that ITAMMA is registered under the Companies Act and is also feeling the need to reinvent itself to address the challenges and demands related to growth and development of the domestic TEI, it was utmost essential to restructure the Articles of Association to ensure better compliance of corporate governance requirements and also to make the Association’s organizational structure, practices and systems future ready. I am happy to announce that with the hard work and cooperation and guidance of several past presidents and office bearers of ITAMMA, we were able to draft the amendments to the Articles of Association.

 

At the same time, it was the need of the hour to strengthen the Directorate to keep in pace with the challenging demands of the Governments for good Governance including statutory commitments. I am proud to mention that "Indian Textile Accessories & Machinery Manufacturer's Association (ITAMMA)" have been accredited by NABET with “DIAMOND Grade” at “National level” on the 10th Meeting of BMO accreditation committee held on 19th June 2017. In recent years, this is the first year when ITAMMA is fully compliant with all statutory requirements and I can assure you that this record will be maintained in future with proper systems in place.

 

Administrative practices and accounting practices have been improved and professional event management practices have been introduced to control costs and ensure more effective and successful events during the year. The secretariat is now in fuller and better control of events planning and execution. We have seen higher participation, lower costs and even generated a surplus from the events organized during the past 12 months, as against a deficit of more than Rs 20 lakhs in earlier years. The quality of the events, in terms of the take-away for participants has also been much higher.

 

While a lot has been achieved during the year, a lot more needs to be done. As I hand over the baton the incoming President, Kaizar, I wish him best of luck and hope that besides carrying forward his own vision for ITAMMA, he will ensure that the unfinished agenda is completed. Rome, after all, was not built in a day and ITAMMA is reinventing itself while beginning celebrations for its 75th Year! These are indeed exciting times, a new chapter in our illustrious history, just as ITAMMA enters its PLATINUM JUBILEE YEAR!

 

 The MoUs were signed with IRAN, on 6th Dec’2016, with API (Indonesia Textile Ass) on 18th July’2017, VITAS (Vietnam Textile Ass) & INCHAM (Indian Chamber of Commerce in Vietnam) on 20th July’2017

 

Study-cum-Business Delegation was organized at Indonesia from 16-18 July’2017 & at Vietnam from 19-22 July’2017, covering 11 Mill visits,  Seminars at Indonesia on 18th & Vietnam on 20th of July’2017, followed by Networking Dinner & Lunch. Business-meetings with VITAS,VINATEX, INCHAM & Consulate General of India in Vietnam proposal of ITAMMA Training centre at Vietnam with the support of VITAS,VINATEX, & Consulate General of India.

 

Also cost effective catalogue shows were organized at Indonesia, Vietnam & Dhaka (during DTG’2017) registering 10-18 members which were followed by Networking Dinners.

 

Seminar organized at Ahmedabad on 5th June’2017 on “One Nation One Tax” participation of more than 250 participants.

 

Seminar on “Union Budget-2017-18 ” at Mumbai on 2nd Feb’2017.

 

Energy Audit at Mumbai on 21st Dec’2017.

 

Seminars on “Leveraging Digitalization to build smarter, faster and more cost effective machines /equipments” were organized  at Ludhiana on 25th April, at Ahmedabad on 4th May & at Coimbatore on 8th June’2017; and also a Seminar on “Industry 4.0 & IoT- Drawing a road map for cost effective implementation” at Coimbatore on 17th July’2017; jointly with ‘Efficient Manufacturing and Automation & Drives India’.

 

Interaction with Machine Tool Manufacturing Association and their members’ participation in catalogue show in Ludhiana.

 

B2B Catalogue display shows at Nagpur on 26th April’2017, at Rajkot on 24th June’2017,   & at Ludhiana on 12th Sep’2017; along with Product-cum-catalogue shows at Guntur on 19th Aug’2017 & at Bhilwara on 9th Sept’2017

Press Conference & Mill visits

 

15 ITAMMA members under the ITAMMA Pavilion in the DHI Pavilion at ‘Textiles India-2017’ held at Gandhinagar, Gujarat during 30-6-2017 to 2-7-2017.

 

During the year ITAMMA has also contributed in CSR activities by organizing “Safety, Health & First Aid Camps”, jointly with EDI under the sponsored project of YES Bank, covering more than 600 workers in an around Navi Mumbai in Jan & March’2017.

 

Also DG(Tech) was invited by Indian Embassy at Rome for Business meet on “India meets at Tuscany Event” at Florence, ITALY, on 8th Nov’2016 for the presentations on the Business opportunities in Indian Textile Industry.

 

DG(Tech) attended the Machine Tool exhibitions at Pune,(16th Oct’2016) Mumbai & New Delhi (29th July’2017 )

 

DG(Tech) and President attended ITMF conference (17/18 Nov’2016)

 

 B2B meets of CII (28th Feb’2017). 

 

ACKNOWLEDGEMENTS:

 

I register my gratitude to the Ministry of Heavy Industries & Public Enterprises, The Ministry of Textiles, Ministry of Finance, Department of Economic Affairs, Excise & Customs, CBDT, Ministry of Science & Technology and the Planning Commission besides the Textile Commissioner for the immense help and co-operation.

 

My sincere thanks are due to everyone associated with ITAMMA in the efforts of contributing to the industrial community and the well being of the Nation at large.

 

I express my thanks to the Press and Textile Journals for their participation with ITAMMA.

 

I always extend my good wishes to the Secretariat headed by the Director General (Technical) N.D. Mhatre and the staff for the sincere co-operation in carrying out the work of the Association.

 

I convey my regards and respects to the Board of Trustees for their invaluable guidance, wisdom and help during my presidentship.

 

My thanks are due to the office bearers, specially Kaizar and Jugal Kishore and all the sub-committee chairs, mentors and members for their co-operation and and teamwork.

 

I take this opportunity to congratulate Mr. Kaizar Mahuwala, the Incoming President, and wish him a successful term in the coming year and also to the new office-bearers team comprising Mr. Naresh Mistry, Mr. Jugal Kishore and Mr. Chandresh H. Shah who join Kaizar as 1st Vice President, 2nd Vice President and Treasurer respectively.

 

Finally, I end by mentioning on a personal note that I took up the responsibility as President to work without fear or favour to bring about a change in ITAMMA in order to make it future ready. ITAMMA has to become ready to play its required role of facilitating the achievement of our mission “Towards achieving Global leadership of Indian Textile Industry”. Change is always risky, discomforting and disturbs the status quo. It is bound to bring resistance and opposition. While I look for no appreciation or fame, I would be happy if my small efforts enable our great association do justice to its role in future.

 

THANK YOU ALL FOR LISTENING TO ME WITH PATIENCE AND ATTENTION. 

 

THANK YOU!

 

 

 

 

 

 

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