FW
The Central Silk Board (CSB) assistant director, Shankar Kotrannavar says a new initiatives is being planned to promote silk. The Board is in working towards introducing new technology to produce Iktat saris using pure silk spun yarn and unique varieties of luxury apparel by exploring the untapped potential of mulberry silk. The Board is also working towards commercialising the technology of knitting fabric using raw mulberry silk produced through automatic reeling machine.
The technology of producing double Iktat saris using silk spurn yarn would be introduced in Patola textile cluster of Gujarat where manufacturers are using raw silk and cotton to weave the Iktat saris. To produce winter garments using mulberry silk yarn, the board will use a new technology through a collaborative effort with the technocrats of the NIFT-TEA Knitwear Fashion Institute in Tirupur. Till now, major concentration has been on winter wear using eri silk.
The board is actively working towards promoting technologies for making silk textiles by ensuring entrepreneurs realise the importance of cost-effective production. Negating sceptics, Shankar says, people are sceptical about producing silk textiles since it is seen as a high-end consumer product. But drastic cost cutting at production level is possible. A cost effective solution suggested by the Board is to blend silk with other natural fibres such as modal, cotton, bamboo and linen.
A double benefit solution was to use double layer fabrics where the outer layer will be a thin layer of silk and inner layer will be made using cotton thus giving the customer the luxury of silk and comfort of cotton. Shankar further reveals the board is also trying to commercialise silk denim and silk knits developed recently post R&D.
H&M, C&A and 3M, are looking into the reported allegation that inmates of a Chinese prison made packaging used by the companies. An H&M spokeswoman said the company was looking into the allegations, but could not yet ascertain whether they were true. It is completely unacceptable placing manufacturing into prisons and it seriously violates the regulatory framework that our suppliers must follow. A failure to comply would immediately lead to permanent termination of our business contract. C&A's chief sustainability officer Jeffrey Hogue said the company took the allegations seriously and was investigating. They have a zero tolerance policy for any form of modern slavery including forced, bonded or prison labour. If detect a case, they immediately terminate relationship with the supplier.
In an article for the Financial Times last week, Peter Humphrey described work the prisoners did, "Our men made packaging parts. I recognised well-known brands 3M, C&A and H&M."
The annual index compiled by EcoVadis notes companies have been making more robust efforts to ensure their supply chains are clean of trafficking and forced labour, but there is still room for improvement. 3M, which also has policies prohibiting the use of forced labour, said it was investigating the report. A spokesman for the brand said, "3M does not engage or participate in exploitative working conditions and we are not aware of any 3M suppliers in China using prison labour."
Bangladesh’s readymade garment sector faces a series of challenges. Less-than-satisfactory performance with on standard and compliance issues, lack of branding and coordination among authorities are among the issues.
Other challenges include dependence on import of raw materials, inadequate supply of utilities, high costs of transport services, limited facilities in ports, lack of interest in financing small and medium producers, administrative and regulatory constraints, unhealthy competition and pricing.
A harmonised and targeted approach needs to be taken toward branding. There is a need for diversification. Five products account for 74 per cent of total readymade garment exports. Bangladesh’s exports are heavily dependent on markets of the European Union, the US and Canada, which account for some 63 per cent, 18 per cent and three per cent of total readymade garment exports. Among new and potential markets for the country are South Asia, Oceania, CIS and Latin America. The move towards upgradation and high-end products could include suits, blazers, lingerie, jackets, swimwear, sportswear, uniforms, raincoats and fishing wear.
The country lags behind international competitors like India, Vietnam and Sri Lanka in terms of efficient production. However, an industry-friendly environment, marked by availability of sufficient manpower, exists across the country.
Apparel Export Promotion Council (AEPC) celebrated 40 years of its inception at APEC Head office in Gurgaon with Amitabh Kant CEO, NITI Aayog as the chief guest for the event. Kant delivered the foundation day speech highlighting the importance of Indian apparel sector as a pivot for higher value addition and employment generation with very low capital investment.
Incepted in 1978 as a quota monitoring entity, AEPC today is one of the largest councils of the country. It is recognised worldwide as a powerful body for the promotion and facilitation of garment manufacturing and export from India. As a sponsored body under the Ministry of Textiles, it boasts of a strong membership base of 8300+ members.
In his address Kant said, “China has started moving out of the apparel sector and there is a huge opportunity for India. Today the wages in China are 2-3 times that of India and given the aging population of China, the cost of apparel manufacturing will continue to rise there. In such a scenario, the global suppliers will start looking at other avenues for sourcing. Countries like Bangladesh and Vietnam are having preferential access in European Markets and hence it is extremely important that we get the FTA with Europe ratified at the earliest.”
He said, as far as Indian apparel exports are concerned, India is heavily reliant on cotton and we need to see how we can move to man-made fibres which can help us to garner more global share. There has been a reduction in the benefits of the Industry post GST roll out and we are looking at ways through which we could bring it at par with the rates prevalent in the previous regime. For the benefit of the Industry central and state levies should be refunded and Government will work with The Industry to resolve this issue,” he added.
HKL Magu, Chairman, AEPC said, “AEPC’s well-timed initiatives and confidence to take calculated risks, braving all odds, perceptible across all circumstances, is the key fuel for the India's apparel export growth. As India is gearing up to move towards WTO-compatible, production-based subsidies from export-based subsidies, it becomes extremely important that we position India strongly as a responsible sourcing destination.”
With 100 days to go till the current Bangladesh Accord on Fire and Building Safety expires, garment companies were asked to continue to ensure a safe and sustainable garment industry in Bangladesh and sign the next 2018 Transition Accord. The 2018 Transition Accord will continue the work of inspecting factories in Bangladesh, identifying safety hazards and ensuring that they are resolved. Currently, 109 garment companies have signed the 2018 Accord, covering over 2 million workers.
Many garment companies have still to reconfirm their commitment to safety of Bangladeshi workers in their supply chain. Among the companies that are delaying are: Marks and Spencer, Next, Sainsbury’s, Metro Group, Abercrombie & Fitch and Dansk Supermarked.
The global union signatories to the Accord, IndustriALL and UNI, and the four witness signatories, Clean Clothes Campaign, International Labor Rights Forum, Maquila Solidarity Network and Worker Rights Consortium, requested garment companies that have not yet signed the 2018 Accord to do so.
Not signing the 2018 Accord means workers will be left in unmonitored factories and consequently, garment brands will fall short on their due diligence obligations to keep the workers in their supply chain safe. Christy Hoffman, Deputy General Secretary, UNI global union says the need for safety committees and inspection programme is on-going because a factory can be safe one day, and then the fire doors are blocked the next. As long as the Bangladeshi government is not yet ready to assume this responsibility, the Accord will continue to provide the training, engineering expertise, and accountability structures necessary to make garment work safer.
The operating profit margins of home textiles exporters has fallen 300 basis points (bps) from this fiscal due to pressure on export realisations post a shift in the dynamics of US retail and a reduction in incentives after the implementation of the GST. This fiscal, the financial scenario is undergoing a dramatic change. Many brick and mortal retailers in the US have trimmed inventory and downsized stores to offset profitability pressures caused by the e-tail boom.
This, along with pricing pressure, is expected to crunch EBITDA to 16 per cent starting this fiscal 2018 as against 19 per cent last fiscal. Debt being raised for capacity expansion (net of repayments) and lower EBITDA margins are forecast to result in aggregate debt to EBITDA ratio increasing to 3 times in the near term when compared to 2.5 times in fiscal 2017. As per Crisil, a global ratings, research company, Indian exporters have been enhancing their share of the business with US e-retailers but at lower realisations. Domestic home textile firms have had a good run since fiscal 2012 with India’s share of the US imports of cotton bed sheets and terry towels increasing from 34 per cent to about 40 per cent in the fiscal 2017.
Women slogging to make clothes for international fashion brands in South Asia are often mistreated by their supervisors reveal numerous garment workers’ diaries. A one-year study of over 500 workers in Cambodia, India and Bangladesh found women often work overtime or borrow money from their husbands to feed their families and pay the rent. “I wouldn’t have enough money if we ate a lot,” read one entry in Cambodia, where researchers found most workers were in their 20s and married, with some basic education and earned about $45 for a 48-hour week. Fashion industry manufacturers have come under pressure to improve conditions and workers’ rights, especially post the 2013 Rana Plaza collapse in Bangladesh.
Research conducted by transparency campaigners Fashion Revolution and The C&A Foundation, which partners with the Thomson Reuters Foundation on trafficking reported the mainly female workforce in South Asia is often underpaid, face daily verbal and sexual harassment and is forced to work long hours. The main aim of the diaries’, they said, was to show “the human cost” of fashion and improve workers’ lives.
Eric Noggle, Research Director, Microfinance Opportunities, says this gives brands something to consider above and beyond their margins when deciding where to make their clothes. Their decisions have a real and meaningful impact on the lives of these women and their families.
Research reveals India had the best living and working conditions and Bangladeshi women earned the least per hour, often forcing them to borrow money. In Cambodia, despite earning the minimum wage and supplementing their income with overtime, researcher found that most workers were still short of money, which meant they had limited access to quality food and medical care.
After intense negotiations, China has agreed to accommodate the demands of Pakistani exporters in the amended Free Trade Agreement (FTA) which is expected to be signed in March. The Pakistani delegation was led by secretary gommerce Mohammad Younus Dagha while the Chinese side was headed by Vice Minister for Commerce Wang Shouwen. The demands included provision for tariff concessions equivalent to Asean countries.
The Free Trade Agreement (FTA) between Pakistan and China would be signed by mid March to increase trade between the two countries. The Chinese side also agreed on Electronic Data Exchange which would help rescuing the chances of under invoicing, another major concern of Pakistani industry.
The major focus of STPF would boost exports in the technology and Services Sector, competitiveness and investment linkages, particularly attraction of Foreign Direct Investment (FDI) in the export related Industry and integration of local industry into global value chain.
US President Donald Trump is determined to impose tariff of up to 45 per cent on goods from China, slash US corporate tax rate to 15 per cent, as against the earlier 35 per cent, and reinvigorate the workforce by supporting the manufacturing sector and imposing stricter immigration rules. These trade policy shifts could have far-reaching implications in international business, especially the textile industry.
Alibaba executive chairman Jack Ma during his speech at the 2017 World Economic Forum Annual Meeting in Davos, had urged people to give Trump a chance. “Give President Donald Trump some time. He has an open mind.” A lower corporate tax rate would see the bells pealing joyfully as it would give many ailing companies a big bottom-line boost, but most fashion retailers largely sell goods made abroad and are subject to tariffs or trade agreements, however these agreements could now be renegotiated. It is felt that companies based in China will face the battering most.
Apparel Industry Suppliers’ Exhibition (AISEX) will be held in Sri Lanka, from May 10 to 12. It brings together suppliers and service organisations in the apparel industry in Sri Lanka. AISEX will provide manufacturers a platform to expand existing manufacturing methods and offer possibilities of increasing production volumes and efficiency through state-of-the-art innovative technology.
Set in this backdrop, the show will bring all suppliers big and small and service organisations in the sector under one roof and will focus on a wide range of textile machinery, accessories and services from many parts of the world.
AISEX will also focus on generating new opportunities closer to home for small scale local designers and manufactures. The event will feature a sourcing market/pavilion where small to medium-scale manufacturers, suppliers and designers can meet and source each other’s skills and products. The event is expected to spur the future development of the industry as a major sourcing and knowledge hub for the apparel sector by 2020. Reinvigorated by the provision of GSP Plus, the apparel industry in Sri Lanka is on the brink of taking every foreseeable step in a bid to take full advantage of the benefits allowed under the scheme.
AISEX is held biannually since 1998.
