FW
Cotton exports from the US in 2017-18 reached its highest level since 2005-06 and were the second highest on record. High exports were on the back of the largest cotton production in the US in more than 10 years and record global consumption.
Compared to 2016-17, US cotton shipments expanded to Vietnam, China, Indonesia and Pakistan. These are four among the US’ top five markets. However, expanding use in Southeast and South Asia has underpinned significant US shipments recently. For the third year in a row, Vietnam continued to be the top US market where shipments surpassed last year’s record, owing to the country’s record yarn production and robust yarn exports.
China was the second-largest destination for US cotton and served as the largest market for US Pima extra-long staple grade. Demand for Pima and Upland continues to grow as China pursues higher quality inputs and works domestic stocks down further.
US exports to Pakistan saw the largest year-on-year increase despite its larger domestic crop. The country’s yarn production continues to grow and is expected to expand into 2018-19, a promising sign for US export prospects. Shipments to Mexico and Turkey were down compared to the previous year, due to higher production in those countries.
Pakistan’s hosiery manufacturers and exporters are facing import restrictions. They are not allowed to make advance payments without bank guarantees from suppliers abroad. Generally, exporters import trims and accessories from buyers' nominated foreign suppliers through advance payments because foreign suppliers only start working after receiving the advance payment.
Export oriented units have to abide by buyers' requirements otherwise future orders would not be placed. Exporters want the provision withdrawn and say it would hinder the smooth process of future export orders, leading to a decline in foreign inflows. They say the withdrawal of advance payment facility will curtail imports for domestic needs. Pakistan is facing a huge trade deficit.
There are about 13,372 circular knitting machines, 10,646 flat knitting and 23,241 socks knitting machines in the country. Capacity utilization is around 70 per cent. Pakistan’s value added textiles in general and the apparel export sector in particular are under severe pressure due to hard competition in the international market being faced from competing countries like Bangladesh, Vietnam and Cambodia.
The new rule has withdrawn the facility extended to manufacturers to import even basic raw materials used in export items on advance payments up to 100 per cent of the value of the goods.
Chinese sportswear giant Li Ning is planning to launch products for its children’s wear brand Li-Ning Young and has collaborated with Disney for the venture. Li-Ning Young added 458 stores in China over the first six months of this year. The company also plans to grow its main brand’s network of 6,267 stores by 50 to 100 in the rest of the year while shutting down inefficient shops.
Li Ning posted a 42 per cent jump in first-half profit, bolstered by stronger apparel sales and e-commerce business. The firm’s net profit rose to 269 million yuan (US$39 million) for the first six months of this year from the same period last year, bolstered by stronger apparel sales and e-commerce business. Its revenue increased by 18 per cent to 4.71 billion yuan.
Apparel sale jumped by 31 per cent to 2.3 billion yuan, making up nearly half of the revenue. Meanwhile, sales on online platforms accounted for 22 per cent of the revenue, up from 19 per cent last year. International markets accounted for 1.6 per cent of the company’s revenue in the first half of the year, down from 2.3 per cent in the same period last year.
RSWM Limited, founded in 1960 as a small textile mill in Bhilwara, plans to expand by venturing into the knitting sector. The company has a turnover of around USD1.5 billion and a monthly production capacity of 10,000 tonnes of yarn per month with woven fabrics from denim for suiting and shirting. With 5,05,000 spindles and 202 looms, the group produces various blends of yarns including cotton, synthetic, corespun, zero-twist, hollow-core, greige, dyed and fancy, melange and eco-friendly, and green yarns.
With 10 state of the art manufacturing plants, 10,000 (MT/ annum) Cotton fibre dyeing capacity and 4,000 (MT/annum) Yarn dyeing capacity, the group offers a very wide range of yarns, fabrics and denims. It offers fabrics dyed with advanced techniques that use less water and chemicals.
The company also offers a premiere collection of shirting and suiting fabrics that range from high street fashion to industrial wear through its brand Mayur. Formerly known as Mayur Suitings, the brand offers classic fabrics in a wide range of fibre blends at an affordable price. These quality fabrics are available for export as well as fine domestic tailoring. Some of the fashion brands, including Kenneth Cole, Marks & Spencer, Perry Ellis, Ann Taylor and H&M are clients for the same.
Chinese companies are exploring investment opportunities in Kazakhstan. Their area of interest include: cotton production, raw material processing, clothing production, and logistics.
Kazakhstan and China have a border connected by mountains and rivers. In Kazakhstan, about 2,50,000 tons of cotton are collected annually. About a third of this is processed and the remaining goes as raw materials for export.
Seeking to attract more foreign investment from its prime position in China’s huge Belt and Road trade project, Kazakhstan has launched a new financial hub. The Astana International Financial Centre (AIFC), a self-styled mid-shore special economic zone, hopes to attract players ranging from Chinese state funds to Swiss private banks by offering tax breaks, easy entry and a Common Law court.
The move is part of Kazakhstan’s ambition to become a Luxembourg-style intermediary between larger nations and a gateway for foreign investment across Central Asia. Modeled on the Dubai International Financial Centre, AIFC wants to host all sorts of market players: family offices, private banks, brokers, asset managers, Islamic finance institutions and fintech companies.
Unlike DIFC, though, AIFC will not require that its members maintain a physical presence in the windswept Kazakh capital. It will also charge much lower fees than the established hubs and offer 50-year tax breaks.
Bangladesh’s export earnings in July were 21.72 per cent higher than in the the same period last year. Knitwear exports grew by 20.88 per cent and woven exports grew by 22.59 per cent. In the last fiscal, apparel sector contributed 83.49 per cent to the country’s total exports. Bangladesh’s export earnings from the apparel sector registered 8.76 per cent growth.
Eid vacations in June hindered production and shipment of goods. The pending shipments were sent out in July, which pushed export earnings up sharply. Improvements in safety standards and workers’ rights have raised buyers’ confidence in Bangladesh’s readymade garment sector, which is a contributing factor to the growth in exports.
Bangladesh has plenty of opportunities in the global export market. The duty on Chinese imports imposed by India and the trade war between China and the US may both help exports from Bangladesh.
Bangladesh’s overall export earnings rose 5.8 per cent in fiscal ’17 as compared to fiscal ’16. In August 2015, export earnings from the readymade garment sector grew by 32.45 per cent. However, the impending new wage structure and prices of gas may pose challenges in maintaining the growth rate in future.
North America's leading fashion marketplace Magic, held recently in Las Vegas featuring 17 Istanbul designers, manufacturers and brands, demonstrated Istanbul’s growing status as a global fashion capital. Organised by UBM Fashion and featuring all major international fashion brands, Magic is a four-day event held at the Mandalay Bay and Las Vegas Convention Centers. The event exhibits a range of women’s wear, menswear, fabrics, accessories, and footwear.
Turkey, Europe's largest textile producer, has long been a leader in the production of fashion textiles, owing to the industry's talented workforce and historical expertise. In recent years, the country has become a manufacturing powerhouse for the global fashion industry, with major brands including Hugo Boss and Balmain leveraging Turkey's 'best of both' blend of fair pricing and quality production.
Turkish participation at Magic is a part of the increasing demonstration of Turkish creativity and innovation in design at key international events. The event is co-organised by the Istanbul Textiles and Apparel Exporters' Association (İHKİB), an industry group with more than 10,000-member exporters.
ICI Pakistan will market Huntsman’s textile dyes, chemicals, digital inks, and services in Pakistan. ICI Pakistan is a specialty chemicals company. The collaboration will combine Huntsman Textile Effects’ global experience in downstream marketing, product innovation, and product stewardship with ICI Pakistan’s extensive and well established local network of customers and suppliers. The combine will help customers in Pakistan produce higher-value products from a cleaner and more modern supply chain.
Huntsman and ICI Pakistan aims to deliver enduring value for the textile sector by supporting local companies capture global emerging opportunities. Huntsman Textile Effects is a leading provider of high quality dyes and chemicals to the textile and related industries. The company has operations in more than 90 countries and six primary manufacturing facilities in six countries (China, Germany, India, Indonesia, Mexico and Thailand). It develops solutions and innovative products with intelligent effects, such as durable water repellents, color fastness, sun protection or state-of-the-art dyes which reduce water and energy consumption. It is a publicly traded manufacturer and marketer of differentiated chemicals. The company’s chemical products are sold worldwide to manufacturers serving a broad and diverse range of consumer and industrial end markets. Huntsman operates more than 75 manufacturing and R&D facilities in approximately 30 countries.
For the three month period ended June 30, 2018, Grasim’s net sales were Rs 17,089.65 crores as compared to Rs 11,222.17 crores during the three month period ended June 30, 2017. Net profit was Rs 1,399.51 crores, as against Rs 1,248.10 crores for the three month period ended June 30, 2017.
Grasim, a part of Aditya Birla, is the world’s fourth largest pulp producer. It is one of India’s largest viscose staple fiber producers and is expanding capacity by 2.4 times. Grasim has ensured control over 80 per cent of the costs through backward integration, giving it an important competitive advantage over nonintegrated players. Its manufacturing input of caustic soda, power and steam and carbon disulfide is fully captive and the company has control over 60 per cent of the pulp requirements.
After the successful introduction of its fabric brand Liva in 2015 in the Indian market, Grasim is planning to take the brand abroad. Indonesia will be next stop, followed by Turkey.
Net sales of Nandan Denim in the three month ended June 30, 2018, was Rs 359.62 crores as compared to Rs 424.44 crores during in the same period in 2017. Net profit was Rs 5.23 crores for as against Rs 16.31 crores for the three month period ended June 30, 2017.
Nandan Denim is India’s largest denim fabric manufacturer. From a year-on-year perspective, Nandan completed capacity expansions at the denim fabric, shirting fabric, and yarn manufacturing units. The company’s fabric manufacturing capacity is 110 million meters per annum. Going forward, emphasis will be laid on fashion denim fabrics to target better realizations compared to regular denim material.
A combination of higher sales volumes and value added products is likely to fuel top-line growth in the coming fiscals. Denim fabric contributes 80 to 90 per cent to Nandan’s annual turnover. Nandan is gradually steering the business towards the value added denim category. A new yarn dyeing plant has been commissioned to meet input requirements of the shirting fabric department.
