FW
Africa's textile and apparel exports to the United States could quadruple over the next decade through an extended duty-free trade treaty. Africa can also create another 5,00,000 new jobs.
The trade program known as the African Growth and Opportunities Act (AGOA) provides eligible sub-Saharan countries duty-free access to the world’s top apparel market, giving Africa a competitive edge over suppliers such as Bangladesh and Vietnam.
The program, in which about 40 African countries are eligible to take part, is expiring on September 30 and could be extended another 10 years.Established in 2000, AGOA has already been renewed past its original 2008 expiration date.
Last year, US clothing imports from sub-Saharan countries were up nearly six per cent from 2013, as countries such as Lesotho, Kenya, Ethiopia and Tanzania participated in the program. With AGOA’s extension Asian firms with factories in Africa are likely to follow through on investment.
Though Africa has lower labor costs and abundant raw materials, such as top quality cotton from Uganda, congested ports, a poor road network, lack of skills and old technology are a hindrance. Costs may be rising in Asia, but they are still way more competitive than Africa, especially on productivity, quality and product range.
trade.gov/agoa/
The International Apparel Federation (IAF) has appointed a new Vice President, Carlos Botero, he is also President of Inexmoda, Colombia. Botero is already a member of IAF’s board and after organizing successful edition of IAF World Fashion Convention in Colombia last year, the organization is excited to have his expertise added to the executive committee.
The Vice President is part of the IAF's Executive Committee, which consists of President Rahul Mehta, Secretary General Matthijs Crietee, Immediate Past President Harry van Dalfsen and Treasurer Han Bekke. All bodies within the IAF have a global coverage and Carlos Botero is the America's representative in the Executive Committee.
Inexmoda is the organization behind the very successful ColombiaTex and ColombiaModa fairs. These fairs have been instrumental in making Colombia, and Medellín especially, into a strong regional hub for the fashion and textile industries.
ShanghaiTex ,that is taking place June 15 to 18, 2015. This, a textile and apparel technology exhibition, is widely supported by professional buyers from the textile industry. Buyer groups from India, Indonesia, Turkey, Korea, Philippines, Uzbekistan are expected.
An international exhibition that has been a fairground to textiles, textile products and equipments, textile machineries, textile goods and services, raw materials, clothing and garments materials and other textile correspondents. It features innovative displays of products and goods. Exhibitors get access to a wide variety of visitors and potential customers and wider business prospects.
Sportswear is one of this year’s show’s priorities. It will explore new textile applications. Thus the organizers have invited many domestic and overseas sports brands to ShanghaiTex 2015. Sports industry giants such as Nike, Jordan, One Way, Decathlon, New Balance, Peak etc have confirmed their participation.
ShanghaiTex is a biennial show that debuted in 1984. ShanghaiTex focuses on exploring eco-friendly and automated textile technologies and innovation to promote a more sustainable and greener economic development. The exhibition showcases the world's most advanced textile technology applications and latest development in high growth segments. Facing tremendous challenges brought about by environmental issues and fast-rising labor costs, China's textile and apparel industry has entered a transformation period.
www.shanghaitex.cn/en/
The textile sector in Pakistan says the budget offers no significant relief. Reduction in export refinance rate to 4.5 per cent and bringing long-term financing to six per cent are some of the incentives the government has announced for the manufacturing sector.
In the last budget, the government had reduced mark-up rate on export finance from 9.4 per cent to 7.5 per cent. This rate was then brought down to six per cent in February 2015 and has now come down to 4.5 per cent. Similarly the government reduced the mark-up rate on long-term financing facility, between three to 10 years, from 11.4 per cent to nine per cent to allow export-oriented industries to make investments on a competitive basis. This was then reduced to 7.5 per cent in February and has now been brought down to six per cent.
In the first 10 months of fiscal year 2015, overall textile exports were down 1.2 per cent compared to the same period of the previous year. This comes despite Pakistan’s securing the GSP Plus facility that grants it duty-free access to markets in the European Union. The euro lost about 20 per cent of its value against the Pakistani rupee in the last one year.
The garment sector in Bangladesh may miss its export target this fiscal year. The three-month political turmoil from January to March hampered shipments.
The strong performance by some competing countries such as India, Vietnam and Pakistan was another major reason for the fall. The average export growth of the three countries is nearly 10 per cent. Another setback for the sector is a lack of new investment for expansion purposes.
Between July last year and May this year, Bangladesh’s garment exports were up 5.51 per cent year-on-year but below the target of 24.26 billion dollars. Short-term challenges include lower productivity of workers, higher cost of production and a steep fall of two major currencies -- the dollar and the euro -- against the taka.
The long-term challenge for the garment sector is the Trans-Pacific Partnership (TPP), a trade agreement between Australia, Brunei Darussalam, Chile, Malaysia, New Zealand, Peru, Singapore, Vietnam and the US. The agreement is expected to take effect soon. If the TPP is signed, Vietnam will enjoy duty benefits to the US and other prominent markets, another threat for the Bangladeshi garment items.
Bangladesh has an export target of 50 billion dollars by the end of 2021.
Pakistan's exports to the European Union (EU) witnessed a 20 per cent increase during January 2014 to November 2014.Exports have risen to euros 5.067 billion against last year’s euros 4.22 billion.
Pakistan has been granted the Generalised System of Preference Plus status. This allows Pakistan tariff-free exports to European markets. It has provided Pakistan a greater opportunity to fully exploit its potential in the textile sector and increase its exports, which may result in the creation of thousands of new jobs.
With the GSP Plus status, the textile sector is eyeing to increase exports from three billion dollars to 26 billion dollars and double the direct and indirect jobs from 15 million to 30 million in the next five years.
Also the GSP Plus mechanism has been an incentive for Pakistan to enhance democratic and human rights reforms in the country. The status is conditional to Pakistan’s meeting its international obligations under the 27 conventions related to human rights, labor rights, environment protection and good governance. The status has been given for ten years and is reviewed after every two years.
The textile sector has reduced carbon dioxide emission by 40,000 tons, which would play a major role in environment protection.
The textile industry in Bangladesh says the fiscal targets set in the budget are unrealistic. It says the government hasn’t properly implemented the annual development program. It wants the government to withdraw the tax on education in private institutions.
The objectives of the budget appear to be high revenue growth targeted for underwriting overreaching expenditure, harmonisation of taxes and tariffs to support selected domestic sectors and higher allocations for building physical infrastructure and capacities.
However reform initiatives need to be given the highest priority if the current macroeconomic stability is to be translated into a journey of higher growth trajectory.Since projects remain behind schedule and get extended, no project other than the mega ones would be extended for more than two years.
To break the decade-long six per cent GDP growth barrier, the establishment of five independent commissions would be of great importance. The commissions are statistical validation, agriculture price, local government financing, public expenditure review and financial sector reform.
Private sector investment, which is the engine for growth, has not taken off the past few years due to insecurity, poor democracy and a lack of business-friendly environment. The continuous recapitalisation of state banks with taxpayers' money has been criticised as it sends out a wrong signal and encourages culprits to embezzle money again and again.
The Competition Commission has approved the Rs 233-crore deal for the acquisition of Birla Textile Mills (BTM) by Sutlej Textiles and Industries.The consideration for purchase of BTM from Chambal works out to be Rs 232.63 crores (including net current assets) subject to closing and other adjustments, if any. The Competition Commission of India (CCI) has communicated its approval.
Birla Textile Mills is the textile division of Chambal Fertilisers and Chemicals located at Baddi, Himachal Pradesh. Birla Textile Mills is well equipped with most modern state of the art textile machineries and sophisticated quality control equipment.
Sutlej Textiles and Industries, the flagship company of the KK Birla Group, had received the approval from its board of directors to acquire Birla Textile Mills in March this year.
On June 12, 2015, Sutlej Textiles and Industries closed at Rs 343.60, down Rs 6.4, or 1.83 per cent. The 52-week high of the share was Rs 445.45 and the 52-week low was Rs 292.30.
The company's trailing 12-month EPS was at Rs 70.48 per share as per the quarter ended March 2015. The stock's price-to-earnings ratio was 4.88. The latest book value of the company is Rs 352.78 per share. At current value, the price-to-book value of the company is 0.97.
www.birlatextile.com/
Seed companies have challenged the Maharashtra government’s decision to reduce the price of genetically modified (Bt) cotton seed. The state government had announced a price cut by 10.5 per cent on June 8 .
Seed producers say the price cut has hurt them and has hit their ability to service farmers. They say unless they are adequately paid, they would not be able to invest in research and development. At the beginning of the season, seed producers had urged the government to raise cotton seed prices in tune with the increase in input costs.
Seed companies say while the cost of seed production has increased by 10 to 15 per cent in the past four years due to a proportionate rise in labor, fertiliser and other input costs, their prices have remained unchanged. They say the price cut would force many seed-producing companies to shut their business.
The companies made requests to Telangana, Andhra Pradesh and Maharashtra to raise prices. All these states said farmers’ condition was not favorable in the country and seed producers agreed with this assessment. However while Telangana and Andhra Pradesh did not take any further action, the Maharashtra government went ahead and lowered the price.
Of 250 companies engaged in seed production across the country, 104 are based in Maharashtra.
The Mafatlal Industries (MIL) has been awarded India's No.1 Brand in 2014 under India’s Best Textile Company category by the No.1 Brand Awards Council. In a statement, Rajiv Dayal, Managing Director of Mafatlal Industries, the flagship company of the Arvind Mafatlal Group, said, “We are delighted to receive this award.”
MIL is the owner of trademark and copyright in the intellectual properties of all name, font and style of Mafatlal, Mafatlal Suitings, Mafatlal Fabrics.
MIL, incepted in 1905, has two vertically integrated composite mills at Navasari and Nadiad in Gujarat. Company’s product portfolio consists of yarn dyed and piece dyed shirtings, fibre dyed suitings in various polyester, viscose, cotton and woollen blends, voiles, prints, linens, bleached white fabrics, rubia, poplins, cambric, women’s garments, value added and fashion denims, school uniform fabrics, corporate/institutional uniforms, bed & bath linen and readymade garments.
