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, utilising cotton from multiple global sources.
Indus will have exclusive use of the platform in these countries and non-exclusive use elsewhere.
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 one 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, believes this agreement is key to reducing the lumpiness in segment revenues to create a steadier revenue stream.
He stated: "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 catalysed 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 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 organisation with forensic cotton traceability and supply chain security, from yarn to finished goods, and compliance with the UFLPA for shipments bound to the US.
"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.”
Applied DNA's CertainT textile traceability platform 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.
The platform encompasses spray systems, DNA taggant, taggant and genotyping testing services, devices and materials for on-site testing, and isotopic testing services.
Applied DNA clarified that no rights to the CertainT platform with respect to home textiles were granted under the agreement.
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.
In 2021 Applied DNA partnered with Stratum Reservoir (Isotech), a specialist in laboratory staple isotope analysis – a technique used for fingerprinting naturally occurring organic compounds such as cotton – to bolster cotton traceability research.
