FW
"Wazir Advisors’ ‘Business Confidence Index’ is a barometer of what businesses think is going to happen in the near future. In India, so far there has been no textile and apparel sector specific confidence index which could provide forward looking data set or ‘lead indicators’ about the sector’s anticipated performance. With an aim to fill this gap, Wazir Advisors commissioned a biannual Business Confidence Survey for the Indian textile and apparel industry. The first survey was undertaken in November 2017 wherein responses from companies across size, sub-segment and geography were obtained using a structured questionnaire."
Wazir Advisors’ ‘Business Confidence Index’ is a barometer of what businesses think is going to happen in the near future. In India, so far there has been no textile and apparel sector specific confidence index which could provide forward looking data set or ‘lead indicators’ about the sector’s anticipated performance. With an aim to fill this gap, Wazir Advisors commissioned a biannual Business Confidence Survey for the Indian textile and apparel industry. The first survey was undertaken in November 2017 wherein responses from companies across size, sub-segment and geography were obtained using a structured questionnaire. The survey summarises the performance expectations of firms over the next 6-months for Indian economy, textile and apparel industry; and their own organization. Around 80 per cent of the respondents were involved in garment manufacturing.
Six Months Ahead: Positive expectations
In the survey undertaken 40 per cent of the respondents had less than Rs 100 crore of revenue; 54 per cent of the respondents were export oriented; 73 per cent of the respondents employed more than 500 persons and 40 per cent of the respondents said that the current overall economy is worst relative to the last six months. However, 80 per cent of the respondents said that they are expecting a better overall economy in the next six months. 53 per cent of respondents have shown a negative sentiment for the industry’s current scenario, somewhat similar to the feedback received for current economic scenario. However, almost two-thirds of the respondents expressed that conditions will be better in next six months.
Almost 73 per cent respondents said demand and profits have decreased because of GST while almost two-thirds reported increase in unemployment. Lower demand during initial months of GST implementation was a procedural issue rather than an economic one. Consumer demand got postponed in certain instances, but never decreased. Manufacturers reporting lower demand thus indicate depletion of stocks in the supply chain. Eventually, the supply chain will look to replenish stock levels and that would mean a much stronger demand from the suppliers in next 6 months. The impact of GST on input cost did not have a clear trend as 33 per cent said it has decreased while 47 per cent said input costs have increased. At the firm level, the current scenario seems neutral to negative as 40 per cent respondents said there is no change compared to the last six months while one-third said that they are negatively impacted. However, 40 per cent of the respondents reported higher orders than last six months while one-third reported status quo. Majority of respondents nearly 73 per cent, held an optimistic outlook for the next six months with respect to the firm’s performance.
For order book volume, 67 per cent expect it will increase further but a same number of respondents reported no change in investments in the next six months. Almost half the respondents expect the input costs to reduce in next six months but 40 per cent expect them to increase. On the employment expectations, the answers were again mixed with 40 per cent expecting increase while 33 per cent expecting decrease 67 per cent of the respondents view increasing wages as the major constraint to business growth. imports, low demand, rupee appreciation and rising raw material costs were cited by 47 per cent of the respondents as a key constraint. Unavailability of skilled labour was cited as a major challenge by 40 per cent of the respondents. The survey findings point out that Indian textile and apparel industry is at an inflection point today. The responses received indicate that on one hand, firms are feeling a lot of pain because of recent policy changes but on the other hand, they are extremely hopeful of the turnaround.
The 34th International Cotton Conference 2018 will focus on sustainable cotton and textile production. It will provide a forum for scientifically founded and practically useful insights into main problems areas of cotton and its supply chain. It will also discuss priorities of consumers as buyers. Cotton Insights is the theme for the 2018 International Cotton Conference in Bremen, Germany on March 21. The three-day conference aims to bring together latest research and its practical benefits. It provides information on responsible cotton/seed cultivation, biotechnological modification of seeds and their application. Innovative processes for the development of new cotton products and equipment will be presented, including trade issues and the export of cotton.
The conference will host sessions and panel discussions on various topics. The topics will pour light on the entire cotton supply chain, including sustainability, cotton quality, seed breeding, digitalisation, research and textile processes.
Jürgen Jansen, will moderate a discussion in his capacity as head of the secretariat of the German Partnership for Sustainable Textiles. He will introduce the topic and define the main points using the example of the textile partnership.
Allan Williams, R&D manager, Cotton Research & Development Corporation (CRDC), Australia, will emphasise on the need to measure progress in sustainable cotton production using objective, internationally recognised methods. Jesse Daystar, VP-Cotton Incorporated USA, will present latest life cycle assessment results covering the lifecycle of fibres and textiles through to end consumers.
Eddie Jernigan, Jernigan Global, will discuss why the era of cheap polyester is coming to an end in China. Richard A Venditti, a professor at North Carolina State University, US, will explain the impact of release of different types of micro-fibres from household laundry on water bodies and the state of biodegradability.
Country’s largest man-made fabric (MMF) wholesale market received a temporary relief after the central government delayed the implementation of the requirement to carry e-permits for inter-state transportation of goods owing to technical problems. Traders want the government to postpone the implementation of e-way bill for six months in order to allow them to get accustomed to the new rule and also because they were still facing problems filing returns on GST portal.
Meanwhile, Federation Of Indian Art Silk Weaving Industry (FIASWI) has decided to convene a meeting of industry stakeholders to decide future course of action regarding the pending issues related to GST. Federation of Surat Textile Traders Association (FOSTTA) president Manoj Agarwal say Union Budget should have given relief to the textile sector, but it has failed expectations. It’s good that the e-way bill has been deferred, but the government will launch once the technical glitches are removed.
Pandesara Weavers Association president Ashish Gujarati say the key demands of power loom weaving sector, including refund on input tax credit and credit on opening stock, are not addressed by this government. The power loom weaving sector is operating on losses.
As per latest buzz Reliance Industries Ltd (RIL) is the only contender to acquire a part of JBF Industries polyester manufacturing operations in a bid that will include its entire overseas operations and an upcoming plant in Mangalore. The company were in talks with private equity fund KKR — which owns around 20 per cent in the company along with a part of the company’s debt.
The framework of the deal has changed since discussions started. If the transaction does not fall through, RIL will acquire controlling stake in the Singapore subsidiary of JBF, which owns the overseas assets and the Mangalore PTA plant, while local operations of JBF group will remain with the promoters of the company.
JBF group is the second-largest manufacturer of textile-grade chips and the third-largest producer of partially-oriented yarn and biaxially-oriented polyethylene terephthalate (BOPET) chips and films locally. The group is among the top 10 BOPET chip and film producers globally through its foreign subsidiaries including JBF RAK LLC, JBF Global Europe BVBA and JBF Bahrain SPC.
The group is also commissioning a 1.25 MMT per annum capacity PTA (purified terephthalic acid) plant, which will be amongst the largest of its kind in India. For the PTA project, which will cost up to $750 million, JBF has raised external commercial borrowings (ECBs) of $464 million and received investment from private equity firm KKR, which has invested $150 million to complete the project.
A RIL spokesperson has said they will continue to make necessary disclosures in compliance with obligations under Securities Exchange Board of India’s (Sebi) regulations and their agreements with the stock exchanges. JBF’s total consolidated debt was at Rs 10,848.53 crore as of March 2017. Previous reports had suggested, JBF RAK, the UAE subsidiary of JBF Industries, were in talks to sell their plant in Belgium for up to $298 million in an effort to settle part of their debt. The proposed sale was one of a number of moves under discussion between the company and banks to renegotiate around $545 million in debt.
Global textile players are expected meet at ITM 2018 International Textile Machinery Exhibition to be held in Istanbul from April 14-17, 2018. ITM Expo, besides being the largest exhibition in its sector in Turkey and the Middle East is also one of the most important organisations of the industry globally. ITM 2016 exhibition held from June 1 to 4, 2016 had seen 100 per cent occupancy rate, and had hosted 1,200 exhibitors and representatives and approximately 50,000 visitors from 76 countries. Similarly, ITM 2018 is expected to break new records in terms of exhibitors and visitors. ITM 2018 is set to host leaders of the textile world, and those serving in all the subsectors of the industry, from cotton to yarn, weaving to knitting and digital printing to dyeing and finishing.
ITM 2018, which will host to international product launches of many domestic and international players in the sector. Another important aspect is the visa agreements between Turkey and countries including India, Pakistan, Bangladesh, Indonesia, Vietnam, Egypt, Algeria, Tunisia, Morocco, Iran, Uzbekistan and Turkmenistan that would see a large contingent from these countries.
ITM 2018, will concurrently host HIGHTEX 2018, the Istanbul Yarn Fair and the ETT2018 conference. Within HIGHTEX 2018, the presentations of Nonwovens, technical textiles, smart textiles and the cutting-edge textile technologies will be done by leading yarn manufacturers worldwide who will showcase their latest trends and newest products to visitors during Istanbul Yarn Fair.
Thrift stores sort through old clothes donations, keep the good items while the bad and the ugly are sent to garment wholesalers who repackage them and forward to textile recyclers. These companies take unwanted clothes slice and dice them — like you do for vegetables — and sell the fabric for use in various other products, like insulation and paper.
Is this a great eco-friendly solution that’s good for the environment? The surplus of used clothing has outstripped demand from textile recyclers. So some donated clothes may actually end up in the dump, and that’s bad for the environment.
Textile industries in some developing countries are struggling to survive because of the large quantities of used clothes shipped in from places like Europe and the US. Some countries have actually started curtailing these imports to protect and develop their textile industries. The problem gets worse partly because some countries are limiting imports, making it difficult for companies in the West to find a market for their exports — the US alone exports $575.5 million in used clothes annually. Further people are buying a lot of new clothes —many of them extremely cheap — but for buyers with lots of disposable income, it hardly matters as they find it so easy to dispose.
Charities are seeing a rise in donations, with clothes ranging from never worn to barely wearable. As they try to process more and more donated clothes, the textile recyclers they work with are also struggling. In other words, it’s becoming a vicious cycle and that means all the extra has to go somewhere, like in the dump or the incinerator.
The 23rd Dhaka International Trade Fair (DITF-2018) ended with spot export orders valued at around Tk 1.60 billion. The fair also sold items valued at around Tk 87 crore. Commerce Minister Tofail Ahmed announced the data of the export orders and sales at the DITF-2018 concluding programme held at Sher-e Bangla Nagar fair ground
He said the trade fair this year was more successful than the previous years with a massive response from visitors. He also said Bangladesh started export in 1972 with $348 million which toched $34.84 billion in 2016-2017 fiscal and in the current fiscal it will be about $37.50 billion. The government’s export target was $50 billion worth of products and services by 2021, he added.
Ahmed also informed the government has been constructing a permanent exhibition venue at Purbachal in a 35 acres of land with a budget of Tk 500 crore which will host trade fairs in near future. The commerce secretary reported global export has seen a 10-fold increase since 1970.
Meanwhile, Bangladesh's export reached $34.84 billion in 2016 as against $348 million 1972, a 100-fold increase. The government has been helping the country's business community with business-friendly export and import policy order. FBCCI President Mohiuddin said exhibitors especially furniture, electronics, ceramics and leather displayed a wide range of diversified products in the international trade fair.
Swadhinata Parishad, the newly-floated panel during the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) election, has threatened to take legal action against the decision to extend the tenure of the current executive board by another year. Md Jahangir Alam, convener of the Swadhinata Parishad said the extension is not legal because it was done post the announcement of election schedule. “If necessary, we will go for legal remedy in the court so that the BGMEA is bound to hold election and not resort to illegal time extension or selection of any particular body for BGMEA executive body,” he said at a press conference held at the capital's La Vinci Hotel.
The election was scheduled to for March 7, but the commerce ministry quickly extended the tenure of the current board of the BGMEA by another year using three excuses, Alam said. The reasons for the extension were: Implementation of the new wage board for garment workers; demolition of the BGMEA building; and the general election.
The extension was not needed for those causes. The extension was also not made following rules. The current board members needed to call an extraordinary general meeting — which was also not done. BGMEA members get to elect the executive board for a two-year term. The tenure of the past two executive boards was extended by six months for extraordinary circumstances: The Rana Plaza collapse and the issue of demolition of the BGMEA headquarters in Dhaka.
Macy's is the latest mass retail company to introduce merchandise that caters to Muslim consumers. The department store chain has announced that it's teaming up with Verona Collection, a modest clothing brand cofounded by Lisa Vogl and Alaa Ammuss, to stock a selection of dresses, pants, cardigans, tops, and hijabs.
The partnership stemmed from the retailer's The Workshop at Macy’s initiative, which aims to foster and support minority- and women-owned businesses into potential future retail partners. Retailers like DKNY have released one-off collections during the month of Ramadan and Eid. Even luxury major Dolce & Gabbana designed headscarves and coordinated abayas from their signature fabrics. Most collections however, target Muslim customers in the burgeoning Middle Eastern markets, where a young and growing middle class includes fashion-forward, luxury consumers.
Starting on February 15, shoppers will be able to shop an edit of Verona Collection's ready-to-wear piece.
Tehctextil Russia, an international trade fair for technical textiles, nonwovens and protective clothing, will be on from March 2- to 23, 2018 in Moscow. The expo is slated to be one of the year’s biggest highlights in Russia and Eastern Europe.
The Russian technical textiles industry is now seeing strong growth following a significant increase in project finance and support from foreign and domestic large-scale investors. Technical textiles and equipment for its production remain the major factor in development of Russian textiles industry.
The textiles industry was getting government support, at both regional and federal levels, innovative materials were developed and improved, a number of new plants were launched which had a healthy impact on Russian market. Rosstat reports production of synthetic yarn in 2017 grew 12.4 per cent, fabrics by 11.1 per cent of which 25.9 per cent were synthetic fibres and threads, 3.5 per cent were nonwoven fabrics. In addition, the output of fabric with PVC coating increased by 19.6 per cent.
Organisers explain, “All these factors once again confirm the necessity and significance of holding such event as Techtextil Russia on an annual basis.” In 2018, four top events will be once again co-located at the Expo centre fairgrounds within the Russian Textile Week. These include Techtextil Russia, Inlegmash, an international exhibition for textile manufacturing and processing, Interfabric, an international exhibition of fabric and textile materials and an international forum Legpromforum-2018.
The fifth edition of Legpromforum-2018 will among others host a symposium on technical textiles. Techtextil Russia is also developing a specialised programme which will discuss key market challenges and prospects, as well as industry trends and updates for the development of technical textiles and nonwovens in various applications.
