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Association Initiatives

In a short span of time that the KIA was formed, we have taken several initiatives aimed at the betterment of not just the members of our association, but of the innerwear industry and society as a whole. We have been at the forefront in raising all the issues that are of concern to us with proper authorities, be it with the health ministry during covid times, and finance ministry on budgetary or GST policies. KIA has not just voiced our industry's issues through letters to relevant offices, but has followed up on the same by forming delegations and meeting key policy makers, including the Chief Minister of Karnataka. We are happy to note that the issues raised by KIA are taken on a serious note by the authorities and most of our concerns are promptly and properly addressed. Here is a glimpse of the initiatives that we have taken over the last couple of years:

MOU to Karnataka CM for Pre-Budget Meet

Ref: 11/21-22
Date: 22-02-2022

To,
Sri B.S. Bommaiji,
Hon. Chief Minister – Karnataka.

Dear Sir,

Sub: M.O.U. for Pre-Budget Meet

Thank you very much for your Invitation to the Pre-Budget Meet, we feel honored.

The Karnataka Innerwear Association (KIA) feels proud in stating that we belong to a State who always supports business with innovative ideas and provides platform for new opportunities. We feel it is the opportune time for the State to provide appropriate support to the industry to fuel its next phase of growth and expect it is address in the upcoming state budget 2022. KIA expects the following crucial points to be addressed.

  1. Set up Textile Trading Parks (in line with Textile Manufacturing Parks): Please allot suitable place at suitable price so that all traders can be at one place, which will lead to increased collaboration.
  2. Raise in E-Way Bill Limit: At present, E-Way Bill is required for an amount of Rs. 50000/- and above. We request to raise the limit to Rs. 1,00,000/- and above in-line with other States.
  3. Stable Cotton prices: The anti-China sentiment, quality goods and timely production have helped the manufacturers attract good Domestic as well as Global business. But at the same time, raw material prices have gone up and Supply:Demand Ratio is disturbed. Government should provide financial support and Incentive-based Manufacturing facilities to maintain the Supply:Demand Ratio.
  4. Incentivizing use of renewal energy: Textile industry is the major consumer of power. To encourage use of renewable power, the Govt must encourage and incentivize investment in green energy and eco-friendly technologies by offering tax benefits to the manufacturers. Please help Textile Manufacturers to have their own source of Renewable Power.
  5. Safety to Business Establishments: Since the crime rate goes up during festivals, we request to set up special teams for safety of business establishments in and around business hubs.
  6. Loans for Small Traders: Due to 2 year-long pandemic, small traders are affected financially as they have paid Rent, Salaries to their staff etc. We request Our Honorable C.M. to provide loans at low interest rates so that they can survive.
  7. Infrastructure: In the name of Smart City and developing other infrastructure, authorities are delaying the projects by years, which is affecting the traders. Many traders were forced to shut down their business establishment as they cannot afford to wait for completion of work. Request authorities to help expedite the completion of such projects as per plan. Also allow offices to open in full strength so that employees who have left Bangalore relocate back here.
  8. Transporting Goods: Allow private vehicles to deliver goods/carry samples without E-Way bill formalities, allow carrying samples and goods on 2-wheeler.
  9. GST Hike: We are fortunate to have our Honorable C.M. as the head of the GST Committee. We request to put forward our demand for scrapping GST hike on textiles. Despite concerns expressed by the industry, the Government has just deferred the increase in GST on textiles from 5 percent to 12 percent. This should be totally scrapped, and all textiles should be taxed at 5%. Increase in GST from 5% to 12% will have a negative effect on the growth of the Textile Industry which contributes a major share in employment generation and export earnings.

Thanking You,
Ramesh Chand Jain - President

MOU to Finance Minister Regarding GST

Ref: 004/21-22
Date: 22-09-2021

To,
Smt. Nirmala Seetharamanji,
The Honorable Finance Minister,
Govt of India.

Respected Madam,

Sub: Memorandum regarding Proposal to hike GST from 5% to 12% on Textile

As you are very much aware, the Textile & Garment Industry is one of the most affected industries due to covid19 pandemic. When we were still trying to recover from first wave, the second wave has hit us much harder. Manufacturers had to bear the brunt due to shortage of manpower, shortage of funds, high fluctuation in prices of raw material etc. Traders could not recover due to inconsistence in supply, low demand, longer credit period, events with limited people, loss of employment etc. The total turnover for Domestic Textile industry went down by nearly 50%.

Bottom line is that textile industry is going through one of the Toughest period. Neither the Pandemic is over nor the problems for Textile Industries. GST COUNCIL’S suggetion to hike the GST 5% to 12% on Textiles has created PANIC among the entire Textile & Garment Industry. This will kill the entire Domestic textile industries. Garment Industry wil face following adverse effect if hike is implemented.

  1. Prices: The prices of yarns have already increased by around 50% and other costing also has increased highly. All these increase in the costing resulted in an increase of around 40% on the finished product during the pandemic. And a 7% increase in GST will definitely increase the price by nearly 12-15% affecting the common man.
  2. Demand: Due to high prices, the common man’s budget will be affected resulting in lower demand.
  3. Investment: As our industry runs on credit and limited availability of investments, many Small Manufacturers / Traders will be forced to SHUT DOWN their units. 4. Unemployment: Due to closure of units or reduction in textile demand many people will loose jobs and hence increase in unemployment. This is the only sector which is labour oriented and gives maximum employment to Un-skilled, Semi-Skilled and Women Labour especially uneducated.

Our dream of Make in India as well as Women Empowerment will be effected at very high extent.

This basic need of all the citizens of India is Roti, Kapada, aur Makaan. Many relief measures were enforced for the first and the last basic necessity of the common man. But the other major necessity, Kapada, has been neglected completely. And now this increase in taxes will burden the common man heavily. The prices of all textiles will go up by almost 15%.

We, repeatedly, were requesting the government to bring the 12% category to 5%, but the recent decision is vice versa. We request the government to bring all textile and made ups to 5% tax category. The increase in prices during this pandemic situation, will burden the common man who is already facing many hardships, and surviving just hand to mouth. Actual Impact of any economy is when the prices of Necessity items becomes cheaper. It is important that the satisfaction of the general public is Must else no Government will succeed in their Planning.

We strongly oppose on behalf of the complete Textile industry, and request your kind selves to bring all TEXTILES and MADE UPS under 5% tax GST Slab to SAVE INDUSTRY which is promoting MAKE IN INDIA & ALSO CREATE SECOND HIGHEST EMPLOYMENT

Regards,
Okchand P Bohra
President - KIA

Letter to the Finance Minister of India

Date: 21st April 2020

To,
Smt. Nirmala Seetharaman,
Hon. Finance Minister,
INDIA

Respected Madam,

Sub: Concerns by INNERWEAR INDUSTRY - KARNATAKA

As our name KARNATAKA INNERWEAR ASSOCIATION (Regd) suggests, We represent the MSME OF INNERWEAR INDUSTRY of KARNATAKA. This organization was established 2 years ago with the vision of Increasing the collaboration in this space and protecting the interests of our group.

In the wake of the deadly coronavirus, your call for a complete LOCK DOWN upto 3rd MAY 2020 has been whole-heartedly supported by all of us. We are already starting to see the benefits of this lockdown in containing the COVID-19 virus.

We would like to list down the problems faced by our industry and sincerely hope that you will address our concerns:

  1. As you are aware, we are the Backbone of any Manufacturing Units. Not only we invest lot of FUNDS but also supply their product to Retail Market by providing CREDIT PERIOD to Dealers.
  2. All Retail Dealers are able to RUN the show because of our support.
  3. Not only do we Invest for DEALERS, we also need to maintain reasonable stock to meet Market Requirements.
  4. One more Important Investment goes as TAXES which we have been PAYING sincerely to Government every Month i.e. within 20 Days, while we collect the same from the Dealers in 90 – 120 Days.
  5. We are working on very THIN MARGIN. For some products our Margins are less than TAX Amount.
  6. DUE to Above LOCKDOWN We will have shortages of FUNDS / LOSSES as we are expecting – Less Turn Over , Credit Period extending to 180 – 210 Days, Increase in BAD DEBTORS, Non Moving / Dead Stocks, BANK INTEREST, Salaries
  7. Even during this time of huge crisis we are bound to help our employees as their families are completely dependent on their salaries.
  8. Apart from all this we have to face unnecessary NOTICES issued by Different Departments i.e. Sales Tax / Weight and Measurement Dept / Labour Dept etc.
  9. Bottom line is that it is going to be a TOUGH PERIOD for INNERWEAR MSME.

Our requests for your consideration are:

  1. Waiving of Bank Interest for at least SIX MONTHS. And Providing Additional LOAN at subsidised rate of INTEREST to meet our Financial Commitments.
  2. Waiving of PF/ESI for at least SIX MONTHS.
  3. Waiving of ELECTRICITY BILL for at least SIX MONTHS.
  4. Reduction of Rental (Shall Be reduced by at least 50% for3 months) by ORDER
  5. SALARIES– Expecting some Percentage of Salary Reimbursement from GOVERNMENT so that it can be a win-win situation for working class too.
  6. Help us in recovering our DUES from Dealers by enforcing some LAW.
  7. Give us at least SIX MONTHS time to face/settle all notices from diffrent Dept.

We request you to Guide us and help us during this TOUGH PERIOD. Even though this industry will lose Millions of Rupees Business, we assure that we have always welcomed the steps taken by the Government in National Interest and provide full support to implement the same. Hope that our problem will be taken care so that we can grow together and come out of this situation.

Thanking You,

For KARNATAKA INNERWEAR ASSOCIATION
Omprakash Heda

Letter to MRC India

Date: 21st April 2020

To,
Shri Piyush Goyalji,
Hon. Finance Minister,
INDIA

Respected Sir

Sub: Concerns by INNERWEAR INDUSTRY - KARNATAKA

As our name KARNATAKA INNERWEAR ASSOCIATION (Regd) suggests, We represent the MSME OF INNERWEAR INDUSTRY of KARNATAKA. This organization was established 2 years ago with the vision of Increasing the collaboration in this space and protecting the interests of our group.

In the wake of the deadly coronavirus, your call for a complete LOCK DOWN upto 3rd MAY 2020 has been whole-heartedly supported by all of us. We are already starting to see the benefits of this lockdown in containing the COVID-19 virus.

We would like to list down the problems faced by our industry and sincerely hope that you will address our concerns:

  1. As you are aware, we are the Backbone of any Manufacturing Units. Not only we invest lot of FUNDS but also supply their product to Retail Market by providing CREDIT PERIOD to Dealers.
  2. All Retail Dealers are able to RUN the show because of our support.
  3. Not only do we Invest for DEALERS, we also need to maintain reasonable stock to meet Market Requirements.
  4. One more Important Investment goes as TAXES which we have been PAYING sincerely to Government every Month i.e. within 20 Days, while we collect the same from the Dealers in 90 – 120 Days.
  5. We are working on very THIN MARGIN. For some products our Margins are less than TAX Amount.
  6. DUE to Above LOCKDOWN We will have shortages of FUNDS / LOSSES as we are expecting – Less Turn Over , Credit Period extending to 180 – 210 Days, Increase in BAD DEBTORS, Non Moving / Dead Stocks, BANK INTEREST, Salaries
  7. Even during this time of huge crisis we are bound to help our employees as their families are completely dependent on their salaries.
  8. Apart from all this we have to face unnecessary NOTICES issued by Different Departments i.e. Sales Tax / Weight and Measurement Dept / Labour Dept etc.

Bottom line is that it is going to be a TOUGH PERIOD for INNERWEAR MSME. Our requests for your consideration are:

  1. Waiving of Bank Interest for at least SIX MONTHS. And Providing Additional LOAN at subsidised rate of INTEREST to meet our Financial Commitments.
  2. Waiving of PF/ESI for at least SIX MONTHS.
  3. Waiving of ELECTRICITY BILL for at least SIX MONTHS.
  4. Reduction of Rental (Shall Be reduced by at least 50% for3 months) by ORDER
  5. SALARIES– Expecting some Percentage of Salary Reimbursement from GOVERNMENT so that it can be a win-win situation for working class too.
  6. Help us in recovering our DUES from Dealers by enforcing some LAW.
  7. Give us at least SIX MONTHS time to face/settle all notices from different Dept.

We request you to Guide us and help us during this TOUGH PERIOD. Even though this industry will lose Millions of Rupees Business, we assure that we have always welcomed the steps taken by the Government in National Interest and provide full support to implement the same. Hope that our problem will be taken care so that we can grow together and come out of this situation.

Thanking You

Thanking You,

For KARNATAKA INNERWEAR ASSOCIATION
Omprakash Heda

Letter to the Prime Minister India

Date: 21st April 2020

To,
Shri Narendra Modiji,
Hon. Prime Minister,
INDIA

Respected Sir

Sub: Concerns by INNERWEAR INDUSTRY - KARNATAKA

As our name KARNATAKA INNERWEAR ASSOCIATION (Regd) suggests, We represent the MSME OF INNERWEAR INDUSTRY of KARNATAKA. This organization was established 2 years ago with the vision of Increasing the collaboration in this space and protecting the interests of our group.

In the wake of the deadly coronavirus, your call for a complete LOCK DOWN upto 3rd MAY 2020 has been whole-heartedly supported by all of us. We are already starting to see the benefits of this lockdown in containing the COVID-19 virus.

We would like to list down the problems faced by our industry and sincerely hope that you will address our concerns:

  1. As you are aware, we are the Backbone of any Manufacturing Units. Not only we invest lot of FUNDS but also supply their product to Retail Market by providing CREDIT PERIOD to Dealers.
  2. All Retail Dealers are able to RUN the show because of our support.
  3. Not only do we Invest for DEALERS, we also need to maintain reasonable stock to meet Market Requirements.
  4. One more Important Investment goes as TAXES which we have been PAYING sincerely to Government every Month i.e. within 20 Days, while we collect the same from the Dealers in 90 – 120 Days.
  5. We are working on very THIN MARGIN. For some products our Margins are less than TAX Amount.
  6. DUE to Above LOCKDOWN We will have shortages of FUNDS / LOSSES as we are expecting – Less Turn Over , Credit Period extending to 180 – 210 Days, Increase in BAD DEBTORS, Non Moving / Dead Stocks, BANK INTEREST, Salaries
  7. Even during this time of huge crisis we are bound to help our employees as their families are completely dependent on their salaries.
  8. Apart from all this we have to face unnecessary NOTICES issued by Different Departments i.e. Sales Tax / Weight and Measurement Dept / Labour Dept etc.

Bottom line is that it is going to be a TOUGH PERIOD for INNERWEAR MSME. Our requests for your consideration are:

  1. Waiving of Bank Interest for at least SIX MONTHS. And Providing Additional LOAN at subsidised rate of INTEREST to meet our Financial Commitments.
  2. Waiving of PF/ESI for at least SIX MONTHS.
  3. Waiving of ELECTRICITY BILL for at least SIX MONTHS.
  4. Reduction of Rental (Shall Be reduced by at least 50% for3 months) by ORDER
  5. SALARIES– Expecting some Percentage of Salary Reimbursement from GOVERNMENT so that it can be a win-win situation for working class too.
  6. Help us in recovering our DUES from Dealers by enforcing some LAW.
  7. Give us at least SIX MONTHS time to face/settle all notices from different Dept.

We request you to Guide us and help us during this TOUGH PERIOD. Even though this industry will lose Millions of Rupees Business, we assure that we have always welcomed the steps taken by the Government in National Interest and provide full support to implement the same. Hope that our problem will be taken care so that we can grow together and come out of this situation.

Thanking You

Thanking You,

For KARNATAKA INNERWEAR ASSOCIATION
Omprakash Heda

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