"Arvind Ltd will demerge some of the brand’s business and engineering business in about a month’s time. The company will relist the engineering and business in January 2019. “We are excited about the opportunity in the textile business as the world is heading for a large recalibration of supply chain in textiles. In the $750- billion global trade, 35 per cent belongs to China, India is the second largest with 5 per cent. But with China’s cost dramatically going up, global trade is moving to South Asia,” says Kulin Lalbhai, Executive Director."

Arvind Ltd will demerge some of the brand’s business and engineering business in about a month’s time. The company will relist the engineering and business in January 2019. “We are excited about the opportunity in the textile business as the world is heading for a large recalibration of supply chain in textiles. In the $750- billion global trade, 35 per cent belongs to China, India is the second largest with 5 per cent. But with China’s cost dramatically going up, global trade is moving to South Asia,” says Kulin Lalbhai, Executive Director.

Providing solutions rather than raw materials

Arvind aims to become a solution provider rather than a provider of raw materials for garments. “We will produce end-to-end garment packages. We call verticalisation. A lot of the garmenting capacities are going to come up, which Arvind will be putting up in India and Ethiopia,” Lalbhai informs. “We expect 50 per cent of our business to move into the vertical route from 10 per cent today. We can provide a customer-oriented asset light growth strategy for end-to-end solutions for all our customers,” he further adds.

There are a couple of other strong contributors to this growth strategy. One of this includes advanced materials business that has come of age. A very large multi-billion dollar market is emerging in India and the export opportunity also. So that business is going to grow quickly upwards of 25 per cent.

Strong predictions for future growth

The other area Arvind has ventured into is textiles performance wear. “We believe the active and athleisure are very large segments which will emerge and this segment has been dominated by Korea, China and Taiwan. We intend to double the textile business from Rs 6,000 crore ( $US 0.82 bn) to Rs 12,000 crore ($US 1.64 bn) over the next five years. Our garmenting capacity will be increased to 125 million garments,” states Lalbhai

The brand’s business has grown at more than 20 per cent CAGR over the last five years. “We expect to continue on a similar growth trajectory of 20 per cent growth for the next five years. We want to more than double our business from to Rs 9,000 crore ($US 1.23 bn) in the next five years,” he notes.

E-commerce constitutes 12 per cent of the company’s business. Arvind has an omni channel strategy where the company integrates inventory across both online and offline markets. It is growing through a combination of third party marketplaces and its own Omni channel portal NNNow.com.

Strong execution leads to great traction

Arvind’s business has seen great traction due to a strong execution track record over the last five years. “We have strong customers who are constantly growing with us both in India and outside India. Our order book has been growing at more than 30 per cent every year,” states Lalbhai. “We aim to reach over Rs 20,000 crore ($US 2.73 bn) plus in the next five years. This will double our business Rs 6,000 crore ( $US 0.82 bn) to Rs 12,000 crore ($US 1.64 bn) . It is more than doubling the brand’s business from Rs 4,000 crore ($US 0.55 bn) to Rs 9,000 crore ($US 1.23 bn) ,” he adds.

With bilateral trade between India and the South American country Peru touching an all-time high of $1.60 bn, the next round of talks for a free trade agreement (FTA) between the two countries is scheduled to take place next month. The aim of this FTA is to liberalise norms for trade in goods and services. Both sides are keen on expanding their trade basket as well as deepening their trade and investments.

There has been a significant increase in trade between the two countries. Import of gold from Peru has gone up from last year’s $ 1.3 bn and it has potential of going up further. Silver is the other metal that India is keen on. India buys copper from Peru as there is huge concentration of Copper which Indian mining companies can explore. Peru is the world’s sixth largest producer of gold, second largest producer of silver, and the third largest producer of copper, tin, zinc, and lead.

Versace will merge Versace Jeans and Versus. The merger will allow the company to further develop the Versace Jeans collections and at the same time not to lose the DNA and codes that made Versus so iconic. The Versace Jeans line is expected to hit the market soon.

Versus was first launched in 1989. In 2005, the brand underwent a four-year break, making a return in the fall of 2009. In fall of 2010, Versace teamed with Scottish designer Christopher Kane, who added a youthful, edgy and underground vibe. In 2012, Donatella Versace came out with a younger feel to the brand as a seasonless line focused on a strong digital presence. Capsule collections, co-branding projects and limited editions were undertaken under the Versus moniker with various designers and artists.

Over the past few months, Versace had been looking at ways to simplify the business model and impart a better focus and energy into the brand portfolio so as to continue being innovative and relevant. So the decision was taken to integrate its two contemporary collections into one. Versace was acquired last September by US group Michael Kors. Versace products are distributed via 200 monobrand stores and over 1,500 multibrand retailers worldwide.

The USA imported $3,088.98 million worth of apparels from Canada and Mexico during January to September 2018 period; the countries USA has been doing business with, under NAFTA, since 1994. The USA noted marginal decline of 0.30 per cent in its apparel import under the North American Free Trade Agreement (NAFTA). The import value, during the corresponding period of 2017, stood at $3,098.25 million.

Mexico’s apparel shipments plunged 2.77 per cent to clock in $2,593.53 million, while the figures were $2,667.29 million in the corresponding period last year. On the other hand, Canada got a considerable boost of 14.96 per cent in apparel export to USA with $495.45 million in the review period of 2018.

Mexico’s probably lost out due to the new United States-Mexico Free Trade Agreement, or NAFTA 2.0, which came into force in late August this year. It has said to hamper US apparel import in September from Mexico.

India’s apparel exports grew 54 per cent in October 2018 as compared to October 2017. Textiles exports grew 28 per cent. Export of cotton yarn/fabrics/made-ups and handloom products during the period grew 25 per cent compared to October 2017. Export of manmade fabrics/yarn and made-ups during the month grew 31 per cent compared to October 2017. Carpet and handicrafts exports grew 52 per cent and 24 per cent during the month.

There has been a positive trend in exports for the entire textile value chain. The IIP production data for textiles and clothing also witnessed robust year on year growth during September 2018 as compared to September 2017. The textile and apparel industry saw a growth of 5.4 per cent and 20.9 per cent respectively during September 2018.

Growing positive trend shows visible signs of recovery after a difficult period. The industry was under major stress especially after the implementation of GST. The industry wants measures to boost exports and limit imports. Continuous growth in exports and the IIP index would result in boosting employment, scaling up production and most importantly making the ‘Make in India’ initiative a reality for the country’s textile and clothing industry.

United States Fashion Industry Association (USFIA) President Julia K. Hughes testified during the Office of the U.S. Trade Representative’s hearing on impact of the U.S.-Mexico-Canada agreement (USMCA) on U.S. Economy, consumers, and fashion Industry.

Her testimony highlighted the importance of trade between the United States, Canada, and Mexico for the fashion industry, and the need for business continuity in this time of uncertainty in trade policy and expected cost increases. While USFIA is supportive of several key components of the new USMCA—particularly the maintenance of the Tariff Preference Levels (TPLs) and the elimination of the “visible linings” requirement for duty-free treatment—USFIA is nonetheless concerned about the continuation of the yarn-forward rule of origin and the addition of new regulatory requirements.

Hughes believes that the new regulations will make it more expensive and complicated for American brands and retailers to use the agreement. Therefore if US wishes to encourage companies to move their sourcing out of China, it should encourage them to do business with its closest neighbors.

Ted Schneider, President, Cotton Council International (CCI), at the Cotton Sourcing USA Summit in Scottsdale, Ariz introduced the US Cotton Trust Protocol; an integrated data collection, measurement and verification procedure that will document US cotton production practices and their environmental impact. The data is intended to benchmark farmers’ gains towards the industry goals and will provide global textile supply chain additional assurances that US cotton is produced in a responsible manner.

The details of the Protocol are being fine-tuned, and a pilot program will be launched in 2019 and fully implemented with the 2020 cotton crop year. Participating growers would be required to adopt a data tool that allows for the quantitative measurement of key sustainability metrics, such as the FieldPrint Platform from field to market.

Growers would complete a self-assessment checklist of best management practices; with a sampling of participating producers subjected to independent verification. The online interface and associated databases are currently being developed by a Memphis-based company The Seam.

The Valsad and Umbergaon power loom clusters have submitted a representation to the state government for granting of subsidy for electricity tariff on the lines of Maharashtra. The Umbergaon GIDC has 100 textile weaving units employing 15,000 workers directly producing shirting and suiting fabrics. Majority of units have been set up by the Mumbai-based industrialists and now they are facing stiff competition due to low power tariff in Bhiwandi and Tarapur in Maharashtra.

The Federation of Gujarat Weavers Association (FOGWA) has been representing the Gujarat government from the last two months for the reduction of power tariff in the new textile policy. The prime reason for reduction in power tariff is to stop the power loom weavers from shifting base from Surat and South Gujarat to neighbouring Maharashtra. According to industry association, the average per unit electricity tariff for industries in Gujarat comes at Rs 7.10, whereas it is Rs 3.54 per unit in Maharashtra.

Monforts technology is behind many denim innovations. As an alternative to conventional padding, especially for wet-in-wet solutions, the Monforts eco applicator can significantly reduce the thermal energy required for drying prior to the stretching and skewing of the denim fabric.

The ability of the eco applicator to significantly reduce energy costs has seen it rapidly accepted on the market. It slashes a company’s denim finishing costs. Monforts is now going a stage further in addressing resource efficiency by combining the eco applicator with its thermo stretch unit in the latest eco line concept.

The Monforts thermo stretch unit carries out the skewing (weft straightening), stretching and drying in a continuous process. The eco line system reduces energy requirements and losses, increases thermal transfer and keeps the drying energy on the textile material longer. As a result, energy savings of up to 50 per cent can be achieved. Exhaust air energy can also be reduced to a minimum, which has a positive effect on the emission load into the atmosphere.

Arvind recently installed India’s first integrated Monforts eco line which can handle fabric widths of 1.8 meters and operate at high speeds of up to 80 meters a minute. Monforts plans to introduce further innovations for denim during 2019.

Ifema is reorganising its fashion and footwear trade shows. Its global sector event will be renamed as Momad (the abbreviation of Moda en Madrid, or Fashion in Madrid in English) and bring together Momad Metropolis and Momad Shoes into a unified whole. The first edition of the new concept will be held at Feria de Madrid from February 8-10, 2019.

The new version of Momad will also welcome shoe manufacturers and brands, which will be presented alongside clothing and accessories exhibitors. And brands with an interest in attending both events will be able to do so for a special price. Momad will coincide with Bisutex, MadridJoya and Intergift in order to create synergies between all the events and attract the largest number possible of exhibitors and visitors.

On October, 17, 2018 the institution announced ShoesRoom by Momad, a new showroom format to replace Momad Shoes. The first edition will take place in La N@ve, an industrial site close to the centre of Madrid, on March 01-03, 2019.