Biotechnology company Applied DNA Sciences has signed a five-year licensing and commercial-based agreement with apparel-textile manufacturer and sourcing firm Indus Group for CertainT’s first large-scale deployment as a cotton traceability platform.
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.