Applied DNA Sciences has signed a five-year licensing and commercial-based agreement with vertically integrated textile manufacturer Indus Group for the DNA authentication firm’s CertainT platform.
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Considering that Indus Group consumes about 450 million pounds of cotton a year, the partnership is the first large-scale deployment of the traceability platform.
CertainT tags, tests and tracks raw materials through each production stage using forensic , multiple-proof-point evidence. The materials are tagged with a unique molecular tag and resulting products can later be forensically tested using a portable device to verify their authenticity .
“This is CertainT’s first large-scale deployment catalyzed by the implementation of the Uyghur Forced Labor Prevention Act (UFLPA),” said Dr. James A. Hayward , president and CEO of Applied DNA. “We expect the UFLPA to be an important tailwind for this segment, informing our sales approach to other apparel textile manufacturers.”
Per the terms of the agreement, Applied DNA will supply Indus with its CertainT platform for non-home, cotton-based products—apparel, accessories and footwear, for example—originating from Indus facilities in Pakistan, Egypt and Jordan, utilizing cotton from various global sources. CertainT encompasses spray systems, DNA taggant and genotyping testing devices, materials for on-site testing and isotopic testing services. Indus will have exclusive use of the platform in these countries and non-exclusive use elsewhere, with zero rights granted with respect to home textiles .
The molecular technologies specialist’s cotton tagging revenues have, traditionally, corresponded with annual cotton harvests . Now, that tagging will happen at Indus’s spinners, which operate year-round. The platform will be implemented at multiple cotton spinning mills in the first year of the agreement with a “planned subsequent broader deployment” based on forecasts from Indus for tagged cotton .
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“We believe this agreement is key to reducing the lumpiness in segment revenues to create a steadier revenue stream,” Hayward said. “For the first time, we have secured a partner that can tag cotton year-round with globally sourced cotton.”
Indus comprises wholly owned and joint-venture production facilities in Pakistan, Egypt and Jordan, serving brands in North America, the European Union, Australia and New Zealand, including big box retailers and leaders in sportswear as well as premium brands.
Established in 1992, innovation and product development are “at the heart” of the New York City-based company’s corporate ethos, and CertainT brings “innovation to the organization” with forensic cotton traceability and supply chain security as well as compliance with the UFLPA for shipments bound to the United States, according to Abid Hafeez , president and CEO of the group.
“Such a capability creates value, sustainability and traceability for existing customers, giving us a significant competitive advantage in global fashion and apparel,” Hafeez said. “We look forward to our new partnership with Applied DNA and expanding CertainT’s footprint within our cotton supply chain in the coming years.”
Financial terms of the agreement were not disclosed.
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