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Liva brand from Birla Cellulose having a gamut of fashion wear comprising of western wear, skirts, kurtis and palazzos showcased its Spring/Summer’16 range of knits at Yarnex, the India International Yarn Exhibition at Tirupur. Tirupur, the leading knitwear hub consumes upwards of 1,300 tonnes of yarn per day. Though the focus has been on cotton in the past, Tirupur has increasingly innovated in manmade cellulosic fibres and its blends. Birla Cellulose has partnered leading knitwear manufacturers and wet processors launched garments in viscose spandex, cotton viscose, viscose polyester, cotton modal and 100 percent modal fabrics, which are supplied to most of the leading brands across the world.
Liva S/S’16 knitwear collection at Yarnex included technological innovations like Birla modal in blends with spandex, cotton, Amicor, wool, linen, PSF ,PTY, spun-dyed viscose in 100 percent and in multi-coloured melanges with potential to save water and energy and emit no effluent load. Siro compact yarns in viscose and modal exclusively offered by Winsome Yarns, Chandigarh and Rangavilas, Coimbatore were also displayed during the event.
Liva Accreditation Partner Forum (LAPF) members showcased their viscose and modal yarns and fabrics with an assurance of 100 percent quality, inspection and service. LAPF is a community of spinners, fabricators and processors, who work closely with Birla Cellulose on innovation, quality and technology to deliver Liva fabrics to consumers.
A delegation of more than 20 representatives from China's fashion and textile industry is being hosted by WGSN, the global foresight business specialising in consumer, fashion and design trends and insights, during the New York Fashion Week 2015. Some of the country's largest garment manufacturers and up-and-coming apparel retailers will be a part of the delegation. The China Textile Information Center (CTIC), is leading the delegation. The CTIC serves China's huge and growing fashion and textile industry of over 20,000 companies.
The delegation would gain deeper insights about US fashion industry and meet with the New York City Economic Development Corporation (NYCEDC) to explore opportunities for investment in the US and China, while in New York. The delegates would also attend informational sessions at WGSN, King & Partners and Parsons The New School For Design. Besides, they would attend the annual Parsons MFA Fashion Runway Show on September 16, 2015, which is sponsored by WGSN.
Sun Ruizhe, Vice-President of CNTAC (the National Textile Apparel Council of China) and Chairman of CTIC feels this a unique occasion for leaders of the Chinese apparel and textile industry to absorb all they can about US fashion industry. Besides its a mutually beneficial opportunity to discuss the huge potential for growth and investment.
Eric Johnson, Director Fashion and Arts Teams, New York City Economic Development Corporation warmly welcomed the representatives of China's textile industry. NYCEDC is upbeat about a meaningful dialogue in support of its mission to realise New York City as the global model for inclusive innovation and economic growth, and to facilitate investments that grow and diversify the City's local manufacturing community.
Amid government's decision to devaluate yuan against the dollar, China’s exports of textiles and apparel further witnessed a double-digit decline in July even after it managed to narrow month-by-month losses in the second quarter.
According to latest figures released by the General Administration of Customs, China’s exports of textiles and apparel dropped by 10.2 per cent year-on-year in July to $30.35 billion. The export of textiles declined by 5.9 per cent to $9.51 billion, while that of apparel dropped by 12.4 per cent to $ 17.74 billion.
Experts point out that since both China’s Export Leading Indicator and New Orders Index of China’s foreign trade declined in July, the prospects of textile and apparel exports in the third quarter are not optimistic. In the first seven months of this year, China’s exports of textiles and apparel totaled $155.62 billion, down 4.4 per cent from a year earlier. The export of textiles dropped by 1.5 per cent to $62.42 billion, while the export of apparel declined by 6.2 per cent to $ 93.2 billion.
However, despite all reports and studies pointing at how falling currency, rising raw material and labour costs in China are impacting the country’s apparel market, forecast by Euromonitor says, the country will exceed the United States to become the world’s largest apparel market by 2019.
Customs.gov.cn
Bangladesh has launched a project to train workers and mid-level managers in different sectors over the next five years. This is necessary to achieve its development goals. More than 43,800 workers and mid-level officers will be trained in phases. The length of the training courses will vary from a month to six months and the educational qualification for the trainees has been fixed between primary school certificates and graduation levels.
Workers will receive training on 15 different subjects, including enhancing managerial capacity, supervision, technology, sewing operations and computer literacy. The first phase of the project has already been completed, under which 2,096 garment workers were given training.
Training institutions will have to manage jobs for 70 per cent of the trainees after completion of the certificate courses. If the training partners fail to do so, their performance would be considered poor. In the absence of skilled trainers in Bangladesh, foreigners take away billions from the country by way of salaries and allowances.
Productivity improvement for garment workers is very important for achieving the country’s export target of 50 billion dollars by 2021. Every year some two million people enter the job market in Bangladesh but most of them do not have the necessary skills.
For the first half of 2015, El Salvador textile exports were 21 per cent more than in the first half of 2014. Exports of readymade apparel were up five per cent. The annual increase in foreign sales was seven per cent while it aAt the end of 2014 the increase was only 0.4 per cent.
For the first half of the year 2015, 12 per cent of sales abroad were those of textiles and 88 percent were those of readymade. Of sales abroad in the first half of this year, 77 per cent went to the United States, 12 per cent to Honduras, four per cent to Guatemala and six per cent to other markets. Exports of cotton shirts generated 28 per cent revenues and cotton socks generated seven per cent.
The country has established a vertically integrated synthetic textile manufacturing cluster. The cluster includes: polyester and nylon yarn, circular and warp knit stretch fabrics. A strategic relationship has been developed between textile mills, garment factories and retailers that would reduce costs, increase efficiency and flexibility.
Factories and mills have engaged in capacity building programs and meeting compliance standards.
Since the beginning of this year, Vietnam has earned $12 billion from exporting garments and textiles. The free trade agreement with the EU could help Vietnam increase export value of its garment products by 50 per cent in the first year and 20 per cent annually in succeeding years. The industry will have even greater opportunities once Vietnam signs the FTA with the EU. Once the Trans Pacific Partnership agreement is signed, Vietnamese exporters can increase their market share in the US.
Finding new markets will allow businesses to increase export revenues and market share, strengthen their position in traditional markets, and be more likely to achieve the $28.5 billion target set for this year. In the meanwhile, Vietnam has to work at identifying weak elements and strengthening internal chain links among garment companies and material manufacturers to make the most of each other’s products. This will allow the country to meet the origin requirements of FTAs and the Trans Pacific Partnership Agreement.
To take full advantage of trade deals, Vietnam’s garment and textile sector should maintain its current growth rate and invest in technology and improve designs, patterns, and quality to gain a firm foothold in the international market.
Cecilia Malmstrom, Trade Commissioner of the European Union (EU) would be skipping a crucial review meeting on Sustainability Compact in November this year, in Dhaka. Officials said she would not be present because of government's failure to enact rules on Bangladesh's labour law.
Amid persuasion from global buyers, especially readymade garments, in July 2013, the law was amended. The B’desh government, since then promised to formulate implementation rules of the law several times, but has not done so far. Tapan Kanti Ghosh, Commercial Counsellor at Bangladesh mission in Belgium, in June informed Dhaka that Malmström would skip the review meeting unless the gazette of rules on implementation of Bangladesh Labour Law is published before July 8. He added that she wanted to see more progress before she arrived in Dhaka.
Tofail Ahmed, Commerce Minister, wrote to Malmström in the first week of July inviting her to attend the review meeting in Dhaka, said officials. Malmström however, replied to the minister in the first week of September about her inability to attend the programme due to 'busy work schedule'. Officials though, believe that she is skipping the meeting as the government did not publish the gazette notification of implementation rules of the labour law.
With monsoon showers making a return, cotton crop growers in the Marathwada and Vidarbha regions of Maharashtra and the rest of the country are optimistic. Experts feel the country will witness a bumper cotton production at around 400 lakh bales with nearly 120 lakh hectares coming under cotton cultivation.
As K R Kranthi, Director, Central Institute of Cotton Research (CICR) says, except some spots such as Telangana and Mahbubnagar, the crop is good across the country. Normally around 16 lakh hectares in the region comes under the cotton cultivation, yielding an output of 30-32 lakh bales. This time, says Kranthi, it could be in the range of 37-38 lakh bales.
However, higher yields mean fall in prices. On the other hand, around 32 farmers allegedly committed suicide in the Marathwada region in the first week of September alone due to draught situation. China too has stopped importing cotton and therefore even exports are down. Cotton prices are currently low at Rs 4,000 per quintal and in July the stocks were around 183 lakh bales. Even if the domestic consumption is around 250 lakh bales there is still a surplus, said Kranthi.
www.cicr.org.in
Shares of textile manufacturer Welspun India have more than doubled over the last six months against the falling performance of other companies and fluctuating stock markets due to declining Chinese yuan. The company has emerged strong in manufacturing textiles—towels and bed sheets. Experts suggest that the bullish run at the stock market signals at steady growth it has been witnessing led by buoyant exports.
Around 95 per cent of Welspun’s revenue is driven by exports to global retailers in the US such as Walmart Stores and JCPenney. Experts point out that several things worked in favour of the company. First, it was able to grab a market share from competing countries such as China and Pakistan owing to cotton stocks at stable prices and government initiatives such as low-cost funds under the Technology Upgradation Fund Scheme. Also the company, in FY11 and FY12, pulled shutters on its unprofitable businesses like standalone retail stores in India, factories in Mexico and Portugal.
Its June-quarter earnings were better than expected as revenue grew 18 per cent year-on-year to Rs1,388 crores, led by a strong 15 per cent volume growth. Operating profit margins expanded to 25.9 per cent backed by vertical integration, volume growth and higher contribution of innovative products, according to Centrum Wealth Research note dated July 21, 2015.
However, Edelweiss Research is careful about the performance of Welspun stock in future, which is up 2.1 times in the past year and is trading at 10 times one-year forward price-to-earnings multiple. The firm feels that the high market share penetration of towel/sheets in the US may limit upsides and the enhanced capacity by various players in this segment in India may have an impact on the company’s growth momentum beyond FY17.
India has imposed restrictions on the import of jute and jute goods from Bangladesh. This is likely to give Bangladesh’s jute sector a rough time. If the country’s jute mills cannot export the ordered goods immediately, they cannot pay salaries and bonuses to mill workers, which may create labor unrest. And if jute mills stop production, jute farmers may be deprived of fair prices during the peak season.
The jute industry in India has demanded imposition of a countervailing duty on imports of jute goods from Bangladesh. Under the SAARC treaty, there is zero duty on import of jute goods from Bangladesh. This, says the Indian jute industry, creates a non level playing field between jute manufacturers of India and Bangladesh. It says subsidised jute goods from Bangladesh are flooding the Indian market, hurting the interests of Indian jute manufacturers.
Indian manufacturers want an export incentive scheme, a level playing field vis-à-vis Bangladesh and an increase in duty drawback rates. They also want the use of jute geo-textiles to be expedited. This product has been found to be beneficial and cost effective in road construction, river bank protection as well as hill slope stabilisation.
