Indus Group Consumes 450 Million Pounds of Cotton Annually for the Manufacture of Apparel, Footwear, and Accessories for Global Brands and Retailers
Applied DNA Sciences, Inc. (NASDAQ: APDN) (“Applied DNA” or the “Company”), a leader in PCR-based DNA technologies, today announced the signing of a five-year license and commercialization agreement for its CertainT® traceability platform (the “Agreement”) with Indus Group (“Indus”) a multinational apparel/textile manufacturing and sourcing company with a reputation for cutting-edge fabric technology and product innovation. Indus consumes approximately 450 million pounds of cotton annually. Financial terms of the Agreement were not disclosed.
CertainT is a textiles traceability platform that uses forensic, multiple-proof-point evidence to enable source and authenticity verification of materials and products at any point as they are transformed through global supply chains.
Under the terms of the Agreement, Applied DNA will supply Indus with its CertainT platform for non-home, cotton-based products (apparel, footwear, and accessories) originating from Indus facilities in Pakistan, Egypt, and Jordan, utilizing cotton from multiple global sources. Indus will have exclusive use of the platform in these countries and non-exclusive use elsewhere. The platform encompasses spray systems, DNA taggant, taggant and genotyping testing services, devices and materials for on-site testing, and isotopic testing services. No rights to the CertainT platform with respect to home textiles were granted under the Agreement.
The Company’s cotton tagging revenues have historically been tied to annual cotton harvests; tagging will now occur at Indus’s spinners, which operate year-round. The parties intend to implement the CertainT platform at multiple cotton spinning mills in Year 1 of the Agreement with a planned subsequent broader deployment based on forecasts from Indus for tagged cotton.
Dr. James A. Hayward, president and CEO of Applied DNA, stated, “We believe this Agreement is key to reducing the lumpiness in segment revenues to create a steadier revenue stream. For the first time, we have secured a partner that can tag cotton year-round with globally sourced cotton. Furthermore, this is CertainT’s first large-scale deployment catalyzed by the implementation of the Uyghur Forced Labor Prevention Act (UFLPA). We expect the UFLPA to be an important tailwind for this segment, informing our sales approach to other apparel textile manufacturers. We look forward to a long and mutually beneficial relationship with Indus.”
Indus is comprised of wholly owned and joint-venture production facilities in Pakistan, Egypt, and Jordan that serve brands in North America, the European Union, Australia, and New Zealand, including big box retailers and global leaders in sportswear and premium brands.
Indus CEO Abid Hafeez added, “Innovation and product development are at the heart of our corporate ethos and are fundamental to our ambitious growth goals. CertainT brings innovation to our organization with forensic cotton traceability and supply chain security, from yarn to finished goods, and compliance with the UFLPA for shipments bound to the U.S. Such a capability creates value, sustainability, and traceability for existing customers, giving us a significant competitive advantage in global fashion and apparel. We look forward to our new partnership with Applied DNA and expanding CertainT’s footprint within our cotton supply chain in the coming years.”
