Under the agreement, Applied DNA will provide Indus with its CertainT platform for non-home cotton-based products, including apparel, footwear, and accessories, produced in facilities across Pakistan, Egypt, and Jordan. The platform will trace cotton sourced globally, offering Indus exclusive rights within these countries and non-exclusive rights elsewhere.
Traditionally, Applied DNA's cotton tagging revenues have been closely tied to annual harvest cycles. This partnership, however, will enable year-round tagging at Indus's spinning mills, ensuring a steady and continuous application.
The initial phase of the agreement will see the CertainT platform implemented at multiple cotton spinning mills, with plans for broader deployment based on Indus's forecasts for tagged cotton. This initiative is expected to stabilize revenue streams, reducing the volatility previously experienced in Applied DNA's cotton tagging segment.
Dr. James A. Hayward, President and CEO of Applied DNA, highlighted the significance of this agreement in stabilizing revenues and addressing compliance requirements under the Uyghur Forced Labor Prevention Act (UFLPA). "For the first time, we have secured a partner capable of tagging cotton year-round with globally sourced cotton," stated Dr. Hayward. "This large-scale deployment is catalysed by the UFLPA, which we anticipate will drive sales to other apparel textile manufacturers. We look forward to a long and mutually beneficial relationship with Indus."
Indus Group's CEO, Abid Hafeez, emphasized the alignment of CertainT with the company's innovation-driven growth strategy. "CertainT brings forensic cotton traceability and supply chain security, ensuring compliance with the UFLPA for US-bound shipments," Hafeez noted. "This capability enhances value, sustainability, and traceability for our customers, providing a competitive edge in the global fashion and apparel market. We are excited about our partnership with Applied DNA and the expansion of CertainT within our cotton supply chain."
Applied DNA’s CertainT platform employs forensic, multiple-proof-point evidence to verify the source and authenticity of materials at any stage of the supply chain. The platform includes spray systems, DNA taggants, genotyping testing services, on-site testing devices, and isotopic testing services.
Importantly, Applied DNA clarified that the agreement does not grant Indus rights to the CertainT platform for home textiles. Indus Group operates wholly owned and joint-venture production facilities in Pakistan, Egypt, and Jordan, serving notable brands in North America, the European Union, Australia, and New Zealand, including major retailers and leading sportswear and premium brands.
In 2021, Applied DNA enhanced its cotton traceability capabilities through a partnership with Stratum Reservoir (Isotech), a laboratory specializing in staple isotope analysis, further strengthening its forensic traceability solutions.