Apparel Export Promotion Council chairmans speech Speech by Shri Ashok G. Rajani, Chairman, AEPC. at 38" AEPC Annual General Meeting 2017 Niryat Bhawan, Rao Tula Ram Marg, New Delhi-110057 Poa saad| Ashok G. Rajani Chairman, AEPCDear Colleagues, On behalf of the Executive Committee of Apparel Export Promotion Council and on my personal behalf, | take great pleasure in extending a very hearty and warm welcome to all of you at this 38" Annual General Meeting of the Apparel Export Promotion Council. The Notice convening the meeting,the Annual Report forthe financial year ended 31° March 2017, along with Annual Audited Accounts and Auditors’ Report have been with you, and with your permission, take them as read. GOVERNMENT'S SPECIAL PACKAGE TO TEXTILE AND APPAREL INDUSTRY | begin by expressing gratitude to the Shri Narendra Modi, Hon'able Prime Minister of India, for the Rs. 6000 crore special package to the Indian Textile and Apparel industry. The much needed booster has strengthened the Indian textile and apparel sector by improving its cost competitiveness in the global market. The package has broken new ground in moving from input-based to outcome-based incentives and infused new energy inthe sector. EXPORT PERFORMANCE and PROMOTION AtAEPC, we are constantly driving for better export opportunities for our members and industry. As we continue to increase and consolidate our position in the existing global markets, we work together with the governments and industry champions on fostering the sectors empowerment in those markets where we have had a presence over years. Our efforts paid off wellthis year. 2016-17 recorded apparel exports worth US$17.48 bn, a 2.9 percent growth over last year. Considering the global headwinds and a difficult business sentiment at home, this is quite an encouraging performance from the Industry. EU as a region continues to be the top destination for India's RMG exports; India's exports to EU was worth USS 6117.1 mn in 2016-17; a decline of 2.4% in 2016-17 as compared to previous year. EU's share in India's RMG exports was 35% which is a decline of 5.1% from previous year. UAE has surpassed USA in terms of exports of RMG from India during the year 2016- 17. RMG exports from India to UAE were to the tune of USS 3961.5 mn, an increase of 45.7% from last year. The exports to USA during the year 2016-17 were to the tune of US$ 3766 mn., which is a decline of 2.5% as compared to 2015-16 when India's export to US were to the 1 chairmans speech 2017 NSStune of US$ 3862.0 mn. US's share in India's RMG exports was 21.5% a decline of 1.2% as compared to 2015-16 In this drive, we participated in various overseas events and organized a few over the year. These ar listed here below: FAIRS/BSMS FROM APRIL 2016 TO AUGUST, 2017 INTERNATIONAL FAIRS a (ii) (i) (w) ) wii) Hong Kong Fashion Week, Hong Kong (4-7 July, 2016) - The Couneil participated with 36 participants (41 booths). 13286 visitors visited the fair and business generated was US$ 664300. Sourcing at Magic, Las Vegas, USA (14-17 August, 2016) — The Council participated with 53 participants (60 booths). 1200 buyers visited India Pavilion during the fair and business generated was US$ 8.77 Mn, India Trend Fair at Tokyo Japan (27-29 September, 2016) - The Council participated with 50 participants (50 booths). 1628 buyers Visited te fairand business generated was USS 7.16 Mn, International Apparel & Textile Fair, Dubai (14-15 November, 2016) - The Council participated with 18 participants. 1628 buyers visited the fair and business generated was US$ 99500. International Sourcing Expo Australia (ISEA), Melbourne, Australia (15-17 November, 2016)- The Council participated with 10 booths Out of total 60 stalls, 45 stalls through FIEO. Hong Kong Fashion Week, Hong Kong (16-19 January, 2017) - The Council participated with 21 participants (21 booths). 7000 visitors visited the fairand business generated was USS 791300. Sourcing at Magic, Las Vegas, USA (20-28 Feb., 2017) - The Council participated in with 25 exhibitors (30 booths). 1450 buyers visited in India Pavilion during the fair and business generated was USS 6.75 Mn.(vii) Hong Kong Fashion Week, Hong Kong (10-13 July, 2017) - The Council participated with 21 booths on self financing basis. 7000 visitors visited the fair and business generated was US$ 1877500, (®) Sourcing at Magic, Las Vegas, USA (13-16 August, 2017) - The Council participated with 57 exhibitors (64 booths). 2800 buyers visited in India Pavilion and business generated was USS 3.83 Mn, BUYER SELLER MEETS: () Buyer Seller Meet at Barcelona & Madrid in Spain (6-11 October, 2016) — The Council participated with 38 participants (40 booths) Total108 buyers visited at Barcelona & 162 visitors visited at Madrid and total business generated was USS 333890 during the BSM at both the places (i) BSMin Malaysia and Indonesia (17-20 October, 2016) - The Council participated with 8 participants in both the places. 104 buyers visited during the BSM at both the places. INTERNATIONAL HIGH LEVEL DELEGATIONS Visit of High Level Trade Delegation of AEPC to Tehran, Iran (24-25 Apri, 2016) andto Dubai, UAE (27-28 April, 2016) Objectives of the Delegation — The Council mounted the delegation with the view to explore the potential ofthe Iranian Market, where the US sanctions have been lifted recently. The Delegation aimed at meeting with Garment Buyers, Associations, Chain Stores, Departmental Stores and Big importers dealing in garment buying with a view to set up institutional mechanism for increasing exports of garments from India to Iran. The delegation also aimed at understanding the business climate, various procedural requirements/documentation required by Indian garment exporters for meeting custom compliance for shipments to Iran; understanding information's about banking arrangements and information's about the garmentbusiness cycle, fashion seasons etc. The delegation invited the buyers to attend India Intl' Garment fair. 3 chairmarts speech 2017 NSSHIGH LEVEL DELEGATION FOR THE PROMOTION OF TEXTILES INDIA 2017, GANDHINAGAR, GUJARAT Weled from the rontin terms of participation at the Ministry of Textile's Textiles India 2017, scheduled from 30/06-02/07/17 at Gandhinagar, Gujarat. | had personally extensively traveled and accompanied Secretary, Ministry of Textiles, GOI, to New York, London and Republic of Korea, among other places, to invite leading Buyers and Brand leaders to the far. The details of delegations supported by AEPC were as follows: () AHigh Level Delegation under the leadership of Smt. Rashmi Verma, IAS, the then Secretary (T), Ministry of Textiles had visited to UK/USA from 3rd to 6th April, 2017 for the promotion of Textiles India 2017. (ii) A-High Level Delegation under the leadership of Mr. Subrata Gupta, IAS, Jt. Secretary, Ministry of Textiles, Govt. of India from Ministry of Textiles had visited UAE from April, 2017 for the promotion of Textiles India (ii) AHigh Level Delegation under the leadership of Smt Rashmi Verma, IAS, the then Secretary from Ministry of Textiles had visited South Korea from 25-28 April, 2017 for the promotion of Textiles India 2017. The delegations invited the buyers to attend Textiles India 2017 (80th June to 2nd July, 2017) DOMESTIC EVENTS We understand that success is founded on partnership, in everything we do, We have taken every opportunity to encourage the industry and its people to make renewed commitments for a better Indian Apparel industry. We not only have been active overseas but also on the domestic front. These are the events we have had this year: (i) EXPORT AWARD FOR THE EXPORT PERFORMANCE FOR THE YEAR 2015-16 Apparel Export Promotion Council has facilitated and honored readymade garment exporters, who have excelled in their export performance for the year 2015-16. The event was organised on 19” December, 2016 at Hotel Taj Palace, New Delhi. The event was inaugurated and distribution of awards in 17 different categories were done by Hon'ble Union Minister of Textiles Smt. Smriti Zubin Irani in the presence of Shri Ajay Tamta, Hon'ble Minister of State for Textiles, Govt. of India , Smt. Rastimi Verma, IAS, the then Secretary, Ministry of Textles and Shri Ashok G Rajani, Chairman-AEPC.(ii) | FASHION FORECASTS SEMINARS: AEPC brought the most popular global trends services of International fashion consultants -WGSN to conduct Fashion Forecast Seminars & free assess of WGSN website pan India to educate the members. AEPC had also conducted fashion forecast seminars with international fashion consultants-WGSN Ltd. The seminars were conducted in November 2016 and March 2017 Pan ndiai.e. Tirupur, Mumbai, Gurgaon, Jaipur, Ludhiana, Noida & Kolkata. Besides seminars, AEPC has also taken online free connection of WGSN forecast for regular use of its members, who were not able to attend seminars or subscribe trends forecasts services. WGSN's inspiration and insight facility are available free of cost to AEPC members from any AEPC offices located at Apparel House-Gurgaon, Noida, Jaipur, Ludhiana, Bangaluru, Mumbai, Kolkotta & Tirupur. (iii) | ROAD SHOW AND PRESS CONFERENCE FOR TEXTILES INDIA 2017 Road show and Press Conference was organized for promotion of Textiles India 2017 at Hyderabad on 5° June, 2017 and Kolkata on 12° June, 2017 respectively. INDIA INTERNATIONAL GARMENT FAIR (DOMESTIC EVENTS) INDIA INTERNATIONAL GARMENT FAIR remains our flagship event over decades. As the sectors primary trade fair of the season, IIGF sets benchmarks for the entire industry. IGF is the biggest international trade fair for Fashion- Womens'wear, Menswear, Childrens'wear, Scarves and Stoles, Bags and footwear, Fashion accessory and Jewelry- and the global benchmark for quality fashion of design and innovative functionality. The network has been growing and flourishing from year to year and forms the basis for the sourcing plans of all major brands in the world of fashion and accessories. The 58° India International Garment Fair (IGF) was organized from 18 — 20 January, 2017, atHall Nos. 8,9,10,11,12 & 12A, Pragati Maidan, New Delhi. 316 participants participated in the fait. During the three days of the fair, 715 buyers from 64 countries and 247 buying agents visited the fair. Textiles India 2017 incorporating 59° IIGF was held from 30 June to 2 July, 2017 at Helipad Exhibition Centre, Gandhinagar, Gujarat. AEPC has been allotted Hall No. 5 & 6 in respect of its participants. AEPC participated in the fair with 343 participants covering an area of 8280 sq, mtrs. The fair was inaugurated by Shri Narendra Modi, 5 chairmans speech 2017 NSSHon'ble Prime Minister of India on 30.6.2017 at 2.10 PM in Helipad Exhibition Centre and 2.35 PM at Mahatma Mandir. AEPC has sponsored 310 overseas buyers and 22 buying agents under the RBSM scheme. PREPARING APPAREL INDUSTRY FOR GST India is at the cusp of major tax reforms and the introduction of GST this July was a watershed of sorts!. In order to enable seamless business, we have been putting in efforts to address the collective wisdom of the industry and policy makers for a sustainable and robust economic system. ‘With the vision to apprise the apparel industry the way we need to prepare ourselves for a smooth transition to the Goods and Service Tax (GST), several one day GST orientation programmes were organized during May-June, 2017 in nine locations — Gurgaon, Noida, Jaipur, Ludhiana, Tirupur, Chennai, Bangalore, Mumbai and Kolkata. ‘The daylong event was designed to provide an overview of the GST framework with an emphasis on the related provisions including all those which are applicable to apparel manufacturers and exporters as per their documentation and compliance requirements, These one day GST-Orientation Programmes were organized in partnership with the accredited GST training partners of National Academy of Customs, Excise and Narcotics (NACEN) and over 1000 members from the trade have attended these orientation programs at mentioned locations. The facilitators, from the accredited institutes made detailed presentations on the below stated topics and the methodology used for training were instructor lead sessions, case study and related examples: * Overview ofthe Actincluding all definitions and concepts + Registration law and process + Inclusions and Exceptions + Meaning and Scope of Supply, Time and Valuation of Supply of Goods and Services GST payment process, time lines and due dligences needed Treatment of job work Returns under Goods and Services Tax and Matching of Input Tax Credit Allother provisions relevant for apparel manufacturers and exporters —for their documentation and compliance requirements Input Tax credit provisions Refund Appeals Review and settlement procedures Inspections, offences and penalty provisions Assessment and audit proceduresThe participants were happy with the initiative and desired to have more time allotted to discuss each topic in detall and for question answer session. Around 90% participants reported that they had benefited through the orientation program and gained better knowledge on GST and its implications A Seminar was organized on 29" March, 2017 at Mumbai on GST frame work, where Emst & Young gave a presentation on different aspects of GST. In addition o the above AEPC had arranged GST training for its officials as well and the initiative was divided into two parts. 21 key officials who are/would be dealing with the matter directly/indirectly had undergone a 3 days extensive GST training programme with NACEN accredited institutes whereas 24 officials based at HO had participated in the orientation programmes conducted for the trade at Gurgaon and Noida. By providing GST training/orientation to its employees, AEPC created its Knowledge Ambassadors, who can be of help to the industry for answering their routine queries and online submission of various formats. MATTERS TAKEN UP WITH THE GOVERNMENT As one the leading Textile councils of the country, we have always played a crucial role in policy making and advocacy with the Government. n this intitive, have been pursuing the following matters with the Government: + To refund all kinds of embedded / blocked Cess / taxes of State as well as Central amounting to around 11% of FOB value of exports, + Complete refund of GST at the time of Export General Manifest (EGM) at customs. + Under FTP exemptions of IGST from the schemes like Advance Authorization, EPCG. + MEIS scrips be allowed to be used for the payment of IGST / SGST / CGST besides Basic Customs Duty (BCD) * The MEIS scrip on garment exports to be raised from 2% to 6% on FOB. + Refund of IGST paid on import of machinery for use by apparel manufacturers exporters + Freight charges may be exempted from the chargeabilty of GST * Supply of samples may be exempted from the chargeability of GST chairmarts speech 2017 NSSExemption of payment of IGST on the scheme of 5% Export Performance Scheme for import of trimmings and embellishments of Department of Revenue (Notification No. 6/2017-Customs dated 02.02.2017) Additional announcement of benefits to garment industry as high labour intensive sector. OTHER RECOMMENDATIONS TO GOVERNMENT Early finalization of India-EU Free Trade Agreement (FTA),FTA with Canada and Australia Involvement of AEPC in discussions on Code on Wages Bill and to suggest to Ministry of Labour and Employment to clarify that the Government does not want to create a stage for uniform wages of Rs. 18000 across sectors and States. State Governments to announce and adopt separate policy for high labour intensive garment sector on the model of Government of Jharkhand where employment generation subsidy of Rs. 5000 per month per worker for 7 years for capacity building of workers (Rs. 6000 for SC/ST women) is available, besides other benefits Market Access Initiative (MAl) scheme's financial assistance for the organization of India international Garment Fair (IGF) for providing marketing platform to small and medium enterprises (SMEs) for exports be considered. Higher allocation of MAI for labour intensive value-added garment export sector. Implementation of schemes approved by the Cabinet under ‘Special Package’ for apparel sector namely optional PF contribution facility to workers and notification of overtime hours of 100hrs per quarter. ROSL AND DRAWBACK RATES To ensure cost competitiveness of the industry, effort is underway for enabling a post transition period (from Oct 01, 2017) drawback rate, which reimburses all other blocked and embedded central taxes. Against the backdrop of diluted FTP benefits and resulting pressures, AEPC has been in regular discussion with relevant authorities to ease out the processes and provide clarity on policy issues.AEPC- STATE PARTNERSHIP INITIATIVE. AEPC's State Partnership Committee has been engaging with state governments for incentivizing new set ups and scaling up of apparel units in the states. AEPC is in discussion with Madhya Pradesh. Orissa, Gujarat and West Bengal Governments with specific suggestions for ensuring feasibility of apparel industry to establish in that region, especially in remote locations. In our commitment towards partnership with State governments, | had a very positive meeting with Dr. Amit Mitra, Honourable Finance, Commerce and Industries Minister of ‘West Bengal. Our relationship reached a new milestone with renewed commitments for expanded production and exports from the state. AEPC- ILO PROJECT FOR DEVELOPMENT OF GOOD PRACTICE MANUAL FOR APPAREL INDUSTRY The AEPC ILO project was initiated in September, 2016 with the objective to benchmark India vis-a-vis the competing counties. To meet the competition and ensure growth, i is important to identify opportunities where efficiencies and productivity can be enhanced. For the same, AEPC has entered into a technical partnership with ILO. AS a technical partner ILO has helped identify existing practices in India, identified the gaps, developed the framework for the manual and finally will develop the manual. AEPC, as an industry partner will be helping in dissemination of the manual recommendations and ensure greater awareness and absorption of the manual guidance. Under this project, a base study was done to assess the existing practices. Case studies were done for various sized factories in NCR, Jaipur, Mumbai, Bangalore and Tirupur. A total of 43 units were covered. The study has been completed in March 2017. On the basis of both primary and secondary data,factors impeding the adoption of good management practices, including labour practices were analyzed and identified and methodologies to overcome the current problems were formulated, Accordingly, a draft manual of good practices capturing around 50 prioritized good practices covering areas of productivity, operational efficiencies, environmental sensitivity, compliance and management practices were prepared and shared with stakeholders during a ‘Stakeholder consultation meeting on 24th May 2017. AEPC'S SUSTAINABILITY INITIATIVE LAUNCHED To promote sustainable practices in the apparel Industry, AEPC launched Indian chairmarts speech 2017 NSSApparel Industry Sustainabilty Programme in July 2017. On this occasion a guidance tool detailing the opportunities available for energy optimisation and easy to adopt changes, was introduced. A series of seminars was panned and rolled out, beginning with a seminar at Delhi The Media Design cell of AEPC designed a thematic Buyers Inspirational Lounge at Textiles India 2017, based on the theme Sustainability in Apparel Design and Stitching. ATDC faculty and students were involved in the project for design of the garments as a live industry project during their course of study. This was also an outstanding example of whata symbiotic relationship between industry and Education can do! ‘AEPC'S CLUSTER DEVELOPMENT INITIATIVE AEPC initiated cluster development programmes in 2016 for improving the supply chain of Indian export basket. The first cluster adopted for the program was the Metiabruz garment cluster in West Bengal ‘As a first step, AEPC conducted a study on the cluster for better understanding of the intervention needs of this cluster, including product development, compliance, finance and logistic issues and development of a common facility center (CFC) for servicing these needs. The need assessment report ofthe study has been used for finalizing the interventions in the cluster. Based on that an MoU was signed with the State Govt, MSME Dept on the sidelines of West Bengal Global Business Summit 2017 in January 2017. Under the marketing & awareness support in MoU between AEPC & M.S, M &T Department of Govt. of Bengal in AEPC Cluster Development Initiative, AEPC supported the maiden Kolkata Garment Expo, 2017 held in Kolkata during 6-8, July, 2017 with 127 participants. The participants displayed woven and knit childrens wear, both high and low end. AEPC has marketed the event by publishing the advertisement of fair in Apparel India magazine and limited circulation to some domestic buyer. AEPC also organized a seminar series during the fair to improve export orientation of the participants. Taking the association further, we met Dr. Amit Mitra, Honourable Finance, Commerce and Industries Minister of West Bengal, along with senior officials, in July, 2017. The Meeting was a run up to the forthcoming West Bengal Global Business Summit 2018, to highlight the investment opportunities in West Bengal and the possible Government- industry partnerships that can be forged. AEPC AWARENESS SEMINARS ON THE GARMENTS SPECIAL PACKAGE (AUGUST- OCTOBER 2016)Immediately after the announcement of Garments Special Package, AEPC launched a campaign for awareness creation on the policy, support and mobilizing units for employing new workmen. As part of this campaign AEPC conducted numerous SME Outreach programmes in all major apparel clusters across the nation including domestic clusters lke Erode and Jabalpur. The workshops were targeted for increased investment and exports through availing of the package benefits. Spread over five months, 18such targeted workshops across all major clusters were organised which benefitted over 13000 exporters directly and more indirectly AEPC AWARENESS SEMINARS ON INTERNAL COMPLAINTS COMMITTEE (ICC) FOR SAFER WORKPLACE ‘As part of Councils Awareness Initiatives, AEPC conducted a series of awareness Programme on benefits and setting up of Internal Complaints Committee (ICC) in pursuance with the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal Act of 2013). The training was conducted through legal experts and NGOs working in this area. The training highlighted the benefit of setting up of ICC for availing ROSL benefits, under the special package. AEPC AWARENESS SEMINARS ON UNIFIED PAYMENT INTERFACE (UPI) AWARENESS PROGRAM IN HEAD OFFICE AND REGIONAL OFFICES. To create awareness on Unified Payment Interface (UPI) AEPC conducted UPI awareness program at the head office and at the regional offices. The regional offices were instructed to associate with different Banks like ICICI, SBI, HDFC, IOB, Bank of Baroda etc. for organizing these seminar. AEPC AWARENESS CAMPAIGNS ON DIGITISATION To promote Governments vision of cashless India, AEPC conducted camps to open bank accounts of the workers. AEPC representatives along with bank officials organized 76 camps wherein 33529 bank accounts were opened in centers such as Noida, Delhi, Tirupur, Kolkata, Bangalore, Chennai, Mumbai, Ludhiana and Jaipur. To spread awareness about the BHIM App. AEPC organized a total of 41 camps inallits regional offices ie. Naraina, Oknla, Noida, Ludhiana, Jaipur, Kolkata, Mumbai, Tirupur, Chennai & Bangalore SWACHCHTA PAKHWADA (1 MAY-15 MAY, 2017) at AEPC. In response to the directives of Ministry of Textiles, AEPC organised Swachchta u chairmans speech 2017 NSPakhwada from 1"May- 15" May, 2017 in garment factories for improving the hygiene and working conditions of the factory workers. Swachta Pakhwada was organised in over 80 garment units across India with an estimated participation of 1400 garment factory employee's and workers. ‘AEPC PARTNERS WITH EPFO FOR AWARENESS ON PRADHAN MANTRI PARIDHAN ROZGAR PROTHSAHAN YOZANA (PMPRPY) AEPC along with Employees’ Provident Fund Organisation, Gurugram jointly organised a seminar on reimbursement of Provident Fund to Apparel Export Industry under Pradhan Manti Paridhan Rozgar Protsahan Yozana (PMPRPY) on 3rd August, 2017 at AEPC, Auditorium, Apparel House, Gurugram. Pradhan Mantri Paridhan Rozgar Protshan Yojana (PMRPRY) scheme has been launched by Government of India to incentivize creation of new jobs in formal sector wherein the Government of India will pay the Employees’ Pension Scheme contribution of 12%. PARTNERSHIP WITH BRANDS TO PROMOTE GENDER EQUALITY AT WORKPLACE PROGRAMME With an aim to improve gender equality at the workplace, UK Minister of State for Foreign and Commonwealth Affairs, Lord Tariq Ahmad of Wimbledon launched the ‘Gender Equality in the Workplace’ programme at the offices of Apparel! Export Promotion Council (AEPC) in Gurugram on August 10th, 2017.The programme, which is in partnership with leading British brands and Indian manufacturers is aimed at improving garment workers’ awareness of their rights, and the procedures for reporting andresolving grievances. SKILL ASSESSMENT CELL Inits continuous efforts to integrate the entire apparel & textile industry atthe grass root level and to facilitate the supply of trained manpower tothe industry, AEPC continuedits initiatives by assessing skills of trained candidates by various training providers and vocational institutes across the country, The AEPC Skill Assessment Cel, with its headquarter at Apparel House, Gurgaon along with its Regional Offices in Bangalore, Chennai, Kolkata & Mumbai executes the micro level implementation of the Schemes. The assessments are conducted on Pan-India level through these offices for MES, Non MES and PMKVY Courses. Since its inception AEPC Skill Assessment Cell has assessed approx.. 1.40 lakh candidates as of today. Directorate General of Employment & Training (DGE&T) under the Skill DevelopmentInitiative (SDI) scheme has authorised AEPC to conduct MES Assessments in the AppareV(Garment, Khadi & Carpet sectors w.e.t. June 2009, Resource Support Agency, Textile Committee has also empanelled AEPC as Assessment Agency for undertaking assessment of trainees trained for Non-MES courses under the Integrated Skill Development Scheme (ISDS) of Ministry of Textiles, Govt. of India, wef. 16° September 2015. Sector Skill Council for Apparel, Made-ups and Home Furnishings (SSC-AMH) in March 2017 has renewed the affiliation of AEPC to commence assessments in various schemes of National Skill Development Corporation (NSDC) under Ministry of Skil Development & Entrepreneurship, Govt. of India AEPC has also recently got certified 22 assessors under affiliation of SSC-AMH in June 2017 by clearing the Online Training of Assessors (ToA) by them and now they all are eligible to conduct assessments for the candidates trained under the various schemes. of NSDC such as Pradhan Mantri Kaushal Vikas Yojana (PMKVY) AEPC SAC is also in the process of submitting proposals with other Central & State Government agencies to designate AEPC as Assessing Body for the assessments under various other schemes. AEPC PROGEN INITIATIVE To tap into the energy and new ideas that the young entrepreneurs can provide for strengthening AEPC's exports strategies for the future, A Progen Sub Committee was constituted in 2016. The Progen initiative was launched in 2017 at Mumbai where the Progen Brochure and Member's Directory was unveiled. To set the tone and provide a global context to the challenges before the industry today, Mr. Nimish Dave, Management Strategy Consultant gave a talk on the Millennial challenges and strategies to overcome them. An important area of focus was the new ways of marketing, especially social media marketing. The Subcommittee has members from all regions, led by the Zonal heads who have been nominated by the members themselves. The Zonal teams have been conducting ‘workshops with their teams in the region on issues pertaining to the region. AEPC MANTHAN- CHURN FOR CHANGE ‘AEPC Manthan — Churn for Change was held on 30 July 2017. It was envisaged by me as an opportunity to pick on the brains and experienced thoughts of exporter members, from the country over, for out of the boxideas. A three hour well informed brainstorming and deliberation on important current issues pertaining to the Indian Apparel industry was organized by AEPC 3 chairmans speech 2017 NSIt was an experience with a differencel! Everyone came together to rediscover something's old and around and create something's new and undiscovered, During the Manthan, there was extensive discussion about how the credibility of AEPC has to be improved in the eyes of the Government and Industry, while concentrating on the two most important roles it has to play- that of Policy advocacy with PMO, Ministries at the centre and states and Government bodies like NITI Aayog and that of Facilitation and Connecting of the dots. Suggestions poured in around the utilization of Apparel house through facilities like an Incubation and R & D centres, Accessories and fabric showrooms and a centre for continuing education. Restructuring of AEPC into a Corporate Entity, export promotion activities, restructuring of the Indian Apparel Industry with disruptive intervention through product development, new principles of management like lean, redefined goals of sustainability and the way to run Apparel House were some key topics during Manthan. Spade work has begun on the suggested measures and teams have been formed to shoulder the responsibilties. APPAREL INDIA MAGAZINE The process of converting the present Apparel India magazine to E-Magazine, for the purpose of reducing the cost, has been initiated. At present 7500 hard copies of the magazine are published and circulated to all members, besides MoT, MoC & DGFT. ASSET MANAGEMENT The AEPC premise at Unit No. 10, Raheja Chambers, Bangalore was vacated by M/s. Mouser Electronics Pvt. Ltd. and the same is leased out to Ms/. Studio 30 Architect & Planners, Bangalore. The tenant of AEPC premises at Karumuthu Centre, Chennai M/s. ICRA has served the lease termination notice and the premises will be vacated by September, 2017. The teamis in the process to rent out the same at the earliest. For covering the AEPC's 3 acre vacant land at Hyderabad, the office in a process to appoint an Architect and Contractor to convert the usage of land from Institutional to Institutional Commercial and to construct apprx. 10000 sq. ft area at intial stage by putting the plinth strength for the available FRA, keeping in mind the future expansion ofthe building,For renting out the vacant space available at 1" and 2 floor of KTM Building, Tirupur, a committee has been constituted consisting of Dr A. Sakthivel and Mr. B. Shanmugansudaram to take decision for renting the available vacant premises. The rent agreement of Naraina office premises has been renewed with 10% enhancement on the last paid rent for a period of 5 years without any further enhancement during the tenure. The statutory taxes such as property tax, maintenance charges, cess etc. have been deposited with authorities concerned in respects of AEPC's premises wherever applicable APPAREL HOUSE The Apparel House, as you are all aware, is a premiere hub for international trade in apparel and accessories, has Showrooms, Auditorium, Exhibition Hall, Art Gallery, Cafeteria, Plaza Area, Amphi theatre, conference room, Travel Desk and Bank/ATM is located at Gurgaon, The Energy Audit Implementation in Apparel House has been completed. This is part of our Green Initiative and Eneray Management. We have also applied for Bee star rating status for the building. Fire mock drills were organized through trained fire officer in the presence of the fire department official, Gurgaon during the year from time to time in order to make the occupants aware about the precautions to be taken if fre breaks out in the building. They were also educated about the use of fire equipment and about procedure to provide first aid to fire victims ete HUMAN RESOURCE ACTIVITIES for AEPC EMPLOYEES HEALTH CAMP ‘AEPC organized a Health Check-up Camp in association with M/s Iffco Tokio General Insurance Co. Ltd. and its TPA M/s Vipul Medcorp TPA Private Limited on January 10, 2017 at its Head Office. The Health Check-up Camp was conducted under the supervision of health specialists from Healthspring Hospitals, Eye- Super Specialty Eye Hospital, Alok Bone Densitometry Centre and W Pratikshia Hospital, Gurgaon. More than 80 employees attended the Camp and were advised on health and fitness. INTERNATIONAL WOMEN'S DAY CELEBRATION On the occasion of International Women's Day on 8th March, 2017 organized the 6 chairmans speech 2017 NSfollowing activities for the female employees of the Couneilin association with TPA M/s Vipul Medcorp TPA Private Limited at the Head Office and Regional offices of the Council Rose buds and chocolates were presented to female employees of the Council at Head Office and Regional Offices which was followed by a cake cutting ceremony atallthe offices of the Council ii Yoga Session @ Head Office ~ Yoga asanas were demonstrated and taught by a qualified yoga instructor which can be exercised daily for keeping body and mind fit iti Live Demonstration on Diet Food —Practical diet food cooking session was conducted by a qualified dietician from Med Care Pvt. Ltd. A little exhibition of product Stalls was set up at AEPC Head Office by brands like Amway, Oriflamme and Tupperware for employees to shop health and beauty products. The day was concluded with the fun games organized for female employees atHead Office HOLI CELEBRATION Hol festival was celebrated at Counci's Head Office on March 10, 2017 by circulating e-greeting and distributing sweets among the employees. In order to enhance the employee bonding and instill a healthy completion a “Holi Colour Quiz” was rolled out onthe day and winners were awarded. ELECTRONIC VOTING SYSTEM The Council has more than 1000 members, therefore E-votingis being provided on all resolutions to be carried at General Meeting, as per provision of Section 108 read with Rule 20 ofthe Companies (Management & Administration) Amendment Rules 2015. Further, proxy voting is not permitted in the process of E-Voting/Remote-E voting because voting can be done by remote e-voting from any place other than the venue of a general meeting by using the unique "user name" and "password' that will be provided separately to each of the voting members by the agency conducting the voting electronically Council has provided the facility of Remote E Voting through M/s. NSDL to its membersfor casting their vote for all resolutions. Further, tablet based voting, through M/s. NSDL, is also provided to those members who are present in person, but had not casted their vote through Remote E-Voting.. ACKNOWLEDGEMENTS | express my gratitude to Shri Arun Jaitley, Hon'ble Union Minister of Finance, Gol, for his continued support the industry. | convey my heart-felt gratitude to Smt. Smriti Zubin Irani, Hon'ble Union Minister of Textiles and Information & Broadcasting, and Shri Ajay Tamta, Hon'ble Minister of State for Textiles, who have wholeheartedly supported various recommendations of the Council and encouraged the garment export industry toperform better. | place on record, my sincere thanks to Secretary (Textiles) Shri. Anant Kumar Singh, IAS for continuous supportin the furtherance of garment exports from India. | wish to express my sincere gratitude to Shri, Subrata Gupta, !AS, Joint Secretary (Exports), Ministry of Textiles, for the guidance extended to us in the matter of export promotion and other policy relatedissues from time totime. | am also grateful to the officers of Ministry of Commerce & Industry, Ministry of Textiles, Ministry of Finance, Office of Textile Commissioner, Textiles Committee, Ministry of Labour, Central Board of Excise and Customs and other officers of Government of India for their cooperation in various export promotion activities and initiatives of the Council. | wish to express my thankfulness to Shri G.K Pillai, Chairperson, Drawback committee, MoF My heartfelt thanks to all Executive Committee Members of the Council for their guidance and support. | would like to mention the name of Late Shri Pritam Goel, Senior colleague and Committee member, who served the council with unstinted dedication and ardor My heartfelt thanks to Shri, H K L Magu, Vice Chairman- AEPC & Chairman Apparel House Sub-committee, Shri Premal H Udani, Chairman Advisory Sub-committee & Smaller & Medium Exporter Development Sub-committee, Shri Narendra Goenka, Chairman, F & B Sub-committee, Shri Anil Buchasia, Chairman EP Sub-committee & State Partnership Sub-committee (ER), Shri Lalit Thukral, Chairman, Exhibition Advisory Sub-committee, Shri V. Elangovan, Chairman, Knitwear Technology Mission, Shri Gautam Nair, Chairman, State Partnership Sub-committee (NR), Shri Raju B chairmarts speech 2017 NSGoenka, Chairman, State Partnership Sub-committee ((WR) Shri B. Shanmugasundram, Chairman, State Partnership Sub-committee (SR), Shri Ashok Logani, Chairman, DISHA Residual Committee, Shri. Rishi Rajani, Chairman, Tech Committee and my other fellow Executive Committee Members, Government Nominees, Co-opted Members, Permanent Invitees & Special Invitees for their unstinted support and guidance. | wish to place on record my sincere appreciation forthe press and media who reported the issues of the garment export industry and supported us by publishing AEPC's recommendations from time to time. lam also thankful to Shri Ram Singh, IPS, Secretary General-AEPC for his support My heartfelt gratitude is also due to Additional Secretary General, Deputy Secretary General, Senior Directors, Directors, General Managers and all other officers & staff of AEPC for their dedicated and sincere service, whose efforts have contributed to councils achievements. With gratitude, | acknowledge the dedicated efforts put-in by all members of the Council. | take this opportunity to express my sincere thanks to the members for their utmost faith and trust reposed in me and Council. !am sure, with sustained efforts, we willbe able to scale even greater heights of success inthe years to come. Best Wishes! (Ashok G Rajani) Chairman, AEPC 8w chairman's spege' 201 SsAPPAREL EXPORT PROMOTION COUNCIL ‘A.228, Okhia Industral Area, Phase-1, New Delhi-110 020, CIN: U74899DL1978NPL008877 Coeee ine) E-mai : smalhotra@aepcindia.com, Website : aepcindia.com