TEXTILE MACHINERY MANUFACTURERS ASSOCIATION (INDIA) Record Note of the Meeting MYANMAR DELEGATION & TMMA (I) OFFICIALS 7th January, 2013 held in TMMA Office, Mumbai Purpose: To discuss and explore the opportunities for collaboration between the textile industry of the both countries. Participants: Delegates from Myanmar Investment and Industrial Development Committee, Lifebond Machines Pvt. Ltd., and TMMA officials. Proceedings: After formal introduction and exchange of visiting cards, Mr. S. Chakrabarty, Secretary General, TMMA (I) briefed the delegation about the current economic scenario of the country, available technologies in the Textile Engineering Industry and potential of collaboration between the two countries. He told that the market demand for the TEI is getting better now and we are able to compete with the big players of the industry into the world market. India is the world leader in Spinning Technologies and has world class products in that segment. In Processing Machineries also we have a good edge, however in weaving and garment making we still need to work a lot to touch the world benchmark. Our companies are exporting to many countries of the world: be it Latin American countries, African countries or South East Asian countries, we have the footprints of our products in these regions of the world. Representing the Myanmar delegation, H. E. Mr. Kyi Thar, informed the TMMA secretariat that they have come here to study the textile industry in India, understand the technological gaps in their industry and find opportunities for investment and collaboration from the Indian companies. He told that they are currently using Chinese machinery in their industry, but wish to find better alternatives from here. They used to have spinning industry as well till some time ago, but that has stopped functioning because of lack of enough cotton and tough competition from China. TEXTILE MACHINERY MANUFACTURERS ASSOCIATION (INDIA) In Myanmar, there are about 50,000 looms which are almost 30-35 years old and run at a speed of 80 rpm. The main product of these looms is a 44 inch width Yarn Dyed Loongi with Selvages on sides and is worn by a majority of the male-female population. Mr. Chakrabarty asked if the delegation would be willing to buy better technology machines such as Rapier looms from India, which can give them a speed of 180-200 with two tucking devices from sides and one tucking device from the center to give a double the size production cloth i.e. a 88 inch width loongi. Though delegation was excited, but the cost of Rs. 4.5 lakh was little out of their budget. Also the Government intends to support the cottage/handloom industry; hence the usage of shuttle less looms will be very limited. Understanding this fact the delegation was informed that India too has about 23 lakh looms out of which just 2.57% are shuttle less looms. The cost of a normal shuttle loom with good quality equipments and installed dobby in 4x1 combinations would cost around Rs. 1.3 lakh per machine and can be run at 130-140 rpm speed. At present the Myanmar industry is getting cheap Chinese shuttle looms at a price of just Rs 80,000/- at landed cost. On this the secretariat pointed out the issue of poor quality, persistent breakage of the tools and regular maintenance problems associated with such machines. The Indian companies can also provide looms at that cost but it would be futile for the Myanmar government to invest in low tech and low quality looms, when they envisage developing their textile industry. The point was noted by the visiting team. Looking at the price factor the secretariat suggested them to have a joint venture with an Indian company to develop their own textile machinery making industry. Since the labor is cheap in Myanmar; Rs. 6000/- which is 50% less than (Rs 9000) the salary of an Indian laborer, could be utilized towards making machines which are not only good in metallurgy but also cost effective. The Indian manufacturers can provide them some technical assistance, design transfer and guidance in the beginning to take it further. But to cover the marginal cost the Myanmar Government or industry need to provide basic infrastructure and also buy some 3040 machines from India. The secretariat suggested them of arranging the training of their staff in Myanmar as well as in India to learn the technology from their Indian counterpart. Mr. Dilip Dhamanwala, MD, Lifebond Machines from Surat asked that the Myanmar Government should study the number of machines they need every month for their industry. It will help them make a comprehensive plan for a Joint Venture. Initially for manufacturing 10-15 machines an area of 5000 sq meter would be enough. Since they would need to scale it up to 40-50 machines in future, a larger area earmarked for such an activity would be very good. He TEXTILE MACHINERY MANUFACTURERS ASSOCIATION (INDIA) also enquired about the kind of support and benefits they will be offering to the Indian manufacturers as for a Small & Medium Enterprise going for a JV in Myanmar, these factors would be of prime concern. Mr. Aye Mauk, Secretary of Planning and Financial Development Committee suggested on providing the existing foundry of about 40 acres for this purpose. This foundry was earlier used for sewing machines, supplied by a company from Ludhiana, in India, but was later on closed due to a decimated demand of its products domestically. This facility can be used for casting, molding and fixtures. It would be good if it is done after a careful visit and analysis of the premise, as suggested by the secretariat to the delegation. Besides weaving machinery, the delegation has also shown interest in getting support for Yarn Dying, and Sizing Machineries from India. As part of their itinerary, they also asked if visiting Bhiwandi, or Malegaon or Surat would be of any help. The secretariat advised them a visit to Surat would be a better idea where they can find various weaving mills, yarn dying and sizing companies from the user industry. Accompanying the delegation, Mr. Hardeep Singh who runs his textile business in Myanmar and represent Indo Myanmar Chamber of Commerce and Industry (IMCC), requested the secretariat to provide the contact details of the companies who are into the manufacturing of weaving, yarn dying and sizing machineries. The secretariat cited about Lifebond Machines, Honest Trading, Laxmi Textile Stores, Prashant Gamatex, Jupiter Comtex and Dalal Engineering to name a few companies with whom they can find the opportunities for JVs and Development. The secretariat handed him out the Buyer’s Guide and the members’ list. Later on he was mailed also the contact details of all the relevant companies mentioned during the conversation. On behalf of the delegation, Mr. Singh invited the Indian TEI to participate in an exhibition IMCC is organizing in collaboration with FICCI during May 2013. They shall send us the formal invitation and registration details for the same. The delegation was also keen on enhancing the cotton production capacity of their farm lands and asked if usage of BT Cotton has made any difference to the production capacity of the Indian farmers. The joint secretary mentioned about a definite increase in the production levels of cotton, but also cited the nuances of environmental health concerns vis a vis genetically engineered crops. For further information on cotton productivity enhancement programs and investments in their country, the delegation was told to contact the Confederation of Indian TEXTILE MACHINERY MANUFACTURERS ASSOCIATION (INDIA) Textile Industry (CITI). The delegation was also provided with the contact details of Greenpeace an NGO working to protect environment, and Indian Council of Agricultural Research (ICAR) doing clinical trials on such crops. The delegation may consider meeting them while formulating and implementing their own environmental, health and industrial policy. The meeting was concluded on a cordial note. Both the visiting team and the host shared the facts that India & Myanmar have had exchange of various trading commodities such as timber, cotton, spices and animals in the past. Besides, a majority of Bengali (West Bengal and now Bangladesh) and Burmese workforce have worked in various industries and government departments of the both countries historically. Owing to these cultural relations, mutual cooperation and ever changing geo political scenario in this region, it would be apt for the decision makers on the both sides to develop new synaptic bonds with each other to flourish our relations and trade opportunities further. List of Attendees Mr. Kyi Thar Mr. Aye Mauk Mr. Than Myint Mr. Hardeep Singh Mr. Dilip D. Mr. S. Chakrabarty Mr. Sachin Arora - Investment & Industry Development Committee, Myanmar Investment & Industry Development Committee, Myanmar Investment & Industry Development Committee, Myanmar Indo Myanmar Chamber of Commerce & Industry, Myanmar Lifebond Machines Pvt. Ltd., India Secretary General, TMMA (I) Joint Secretary, TMMA (I)