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Recently, the European Commission’s DG GROW invited representatives of the textile, fashion and creative industries to a workshop on the EU funding opportunities for the sector. More than a hundred participants attended the event with the aim to get a better understanding of practical ways to participate in the European Fund for Strategic Investment (EFSI) which drives the Investment Plan for Europe.
Director for Innovation and Advanced Manufacturing from DG GROW Sławomir Tokarski stated in his opening speech that the EFSI, operational since one year, has already landed about €50 billion in the European business. The EFSI supports investments in real economy - infrastructure, education, research and innovation, as well as risk finance for small businesses.
Industry representatives were invited to present projects to be submitted for the EU funding. The European silk industry, approached by EURATEX, unveiled its project ‘Towards European Sericulture’.
Emphasised, Philippe de Montgrand, President of AIUFFASS Silk Section, that silk industry in Europe has a long tradition combined with a strong capacity to innovate. About 200 silk producing SMEs are concentrated in Lombardy (Italy) and Rhône-Alpes (France) providing 20,000 direct jobs. Currently, raw silk supplies mainly depend on China and the EU fashion brands and silk manufacturers are concerned by the long term access to high quality raw silk and the risk of supply shortage.
The ninth edition of Milano Unica Shanghai, the third appointment of the new Milano Unica World calendar is open. Following edition two of MU New York and after the success of the 23rd edition of Milano Unica, the textile and accessory exhibition opens in China targeting the same great success obtained last October 2015: ‘The best edition ever,’ according to President Ercole Botto Poala.
Due to the Chinese new year celebrations, the reduced participation of the Chinese businesses in Milan, totally expected but it will be certainly offset by the clients interested in visiting the 78 Italian businesses, among the world’s most important, showcasing their SS 2017 collections.
In October 2015, with a three per cent increase on the already excellent results achieved in the March 2015 edition, more than 4,000 selected operators visited the trade show, attracted by Italy’s glamorous image.
Milano Unica Shanghai, the showcased textiles include an array of materials differentiated by a variety of quality products and styles, enough to fully satisfy customer demands. Experimentation, a taste for beauty and a careful eye to sustainability are the key aspects of the super-luxury precious materials re-interpreted in a technological vein. Fabrics feature high performance and the finest, almost seductive, workmanship in handmade embroidery and an exclusive array of prints.
India’s Largest Quality Vocational Training Provider for the Apparel Industry, Apparel Training & Design Centre (ATDC) was awarded ‘Best Vocational Training Provider (VTP) Training 2016’ by Associated Chambers of Commerce and Industry of India (ASSOCHAM) at ‘Award-cum-summit Skilling India: The Way Forward’ at a function held in New Delhi.
ATDC has been selected for this award for its contribution to large scale quality skilling of Indian youth specially women in rural and semi urban areas for meeting the rapidly changing skill requirements of apparel sector with real time industry relevant skill modules and new learning solutions, thus providing wage employment for youth specially women having dedicated verticals to work with Ministry of Textiles, GOI (for ISDS Project), DGE&T (Ministry of Skill Development & Entrepreneurship, GOI) (for Longer Duration Vocational Courses) and AICTE (Ministry of HRD, GOI) & RGNIYD (Ministry of Youth Affairs & Sports, GOI) (for B. Voc. Courses).
While exporters require cycle and through put time to be brought down in the context of ‘Fast-Fashions’ approach gaining ground world-over, the domestic sector wants “Product Lifecycle Management” ‘fast-turnaround of store merchandising’, captivating visuals etc. The e-commerce/m-commerce wants fashion to meet instant gratification standard with supply chain-logistic management. ATDC is the largest vocational training provider for the textile-apparel chain offering a comprehensive bouquet of courses for ‘career’ progression in an integrated manner by creating a “step ladder-training eco-system” with clear focus on “Skilling of aspirational Indian youth”.
Chinese cotton imports in February fell 65 per cent compared to the same time last year. Cotton demand from China is slumping, thanks to heavy inventories and sluggish economic activity. In fact, China is expected to be overtaken by Bangladesh as the world’s top cotton importer in 2015-16.
Chinese cotton demand in the year to July 2016 is expected to fall to the lowest in twelve years. China is believed to have accumulated as much as 11million tons of cotton as part of a price support scheme. The country is now planning to release these supplies back on the market, but at what price, and at what speed, remains to be seen.
Pressured by sluggish global demand, cotton futures had a terrible start to the year. By late February, prices in New York were down 15 per cent from the start of the year. Chinese imports remain the key to the price outlook. Since the global inventory reduction in 2016-17 is due solely to China, the upside price potential in New York will probably remain limited for as long as China's imports do not pick up again and worldwide demand essentially stagnates.
Prices are still down about 10 per cent since the start of the year.
Indian government has reestablished the Khadi and Village Industries Commission (KVIC), the nodal agency for promoting khadi fabric in the country through a notification. Nearly 1m018 Khadi and Village Industries institutions are registered as members, while KVIC was granted deemed Export Promotion Council status in December 2006.
Five per cent of the free on board value or Rs 10 lakh, whichever is less, is provided as incentive for KVI units which undertake direct exports. In addition, KVIC encourages Khadi and Village Industries to participate in international trade fairs by subsidising 75 per cent of the airfare and 50 per cent of stall rent to augment export of their products.
In case of women entrepreneurs and institutions like ST, SC and NE States, air fare and stall rent are extended to the extent of 100 per cent subject to maximum limit of Rs 1.25 lakh each. The Ministry of Micro Small & Medium Enterprises too is implementing a number of schemes for the holistic development and promotion of khadi, according to the sources. These include; strengthening of infrastructure of existing weak Khadi Institutions and assistance for marketing infrastructure provides for renovation of Khadi sales outlets.
The reduction of VAT on cotton and other yarn has been welcomed by cotton spinning industry in Punjab. The state has around 100 spinning mills. The industry hopes to get a level-playing field with the VAT reduction and compete with the spinning industry in neighboring states.
Cotton ginners were demanding various types of tax relaxations. VAT reduction will not directly help the cotton ginning factories but it will provide some relief as demand for yarn will increase and spinning mills will increase cotton purchases. Ginning factories in Punjab have reduced to nearly 100 from 422 in 2003.
In the wake of higher VAT in Punjab, the weaving industry preferred to purchase yarn from spinners in Himachal, UP and Uttarakhand. Out of the 100 spinning mills in Punjab, ten mills with an installed capacity of 1.5 lakh spindles had closed recently due to the unfavorable tax regime.
The spinning industry was facing tough times in Punjab due to the higher VAT. Spinners from neighboring states used to sell it at two per cent VAT, but with a reduction in tax rates, the spinning industry will be able to compete.
Reduction in VAT will prove a big relief to the Punjab-based spinning industry.
Coimbatore, Tamil Nadu, has institutes devoted to industrial textiles, home textiles and medical textiles. Coimbatore is one of the major textile centers in the country. With several medium and large scale industries looking at technical textiles for diverse applications, these centers will promote innovative applications for textiles, especially using non-woven materials.
One center promotes research, encourages industry to use the machinery installed, takes up testing, imparts training, and also manufactures products for commercial use. It has set up full production lines to make wet wipes for diverse uses and needle punching coir products and is working on various raw materials to produce non-woven mats that can be used as filter in different industries.
The market size for industrial textiles in the country is Rs. 9,929 crores. For medical textiles it is Rs 4,282 crores and for home textiles it is Rs 9,274 crores. The market is growing at the rate of six per cent to 14 per cent annually, depending on the product.
In 2012-2013, import of industrial textiles was 22 per cent of the total technical textiles imported, import of medical textiles was 15 per cent and import of home textiles was seven per cent. Export of technical textiles was to the tune of Rs 7,117 crores and of this 15.1 per cent was industrial textiles, 9.9 per cent was medical textiles, and 10.9 per cent was home textiles.
Global buyers have cut business relations with 55 readymade garment factories in Bangladesh due to noncompliance. The American group Alliance has suspended business relations with 42 factories. The European retailers’ group Accord has terminated business relations with 13 factories.
These factories have failed to make adequate remediation progress and provide evidence of remediation. Some factories have failed to attend a remediation escalation roundtable and some have failed to provide evidence to comply with the procedures for ensuring a safe working environment.
After the Rana Plaza building collapse, which killed more than 1,100 people, mostly garment workers, in April 2013, North American retailers, including top brands Walmart and Gap, formed the Alliance, and European retailers formed the Accord, undertaking a five-year plan which set timelines and accountability for inspections and training and workers’ empowerment programs.
The Alliance has so far inspected 870 factories while Accord inspected more than 1,600 factories. During inspections both Alliance and Accord found serious structural faults in 106 factories and sent the list of the units to the government-set review committee suggesting immediate evacuation.
Out of 106 factories 35 were closed as per recommendations. Suspended factories wishing to get back into the fold have to undergo a new inspection at their own cost.
India’s trade deficit narrowed in February to its lowest since September 2013 as exports contracted at a slower pace. However, demand remains weak from Europe, the country’s biggest market. India has been struggling with weak global demand although the blow has been softened by a collapse in its oil import bill and curbs on gold imports.
The decision to impose curbs and raise tax on steel imports to protect domestic steel makers has also had the adverse impact of raising costs and sapping the ability of Indian producers of engineering goods to compete.
Cheaper Chinese exports have undercut India’s engineering exports, which constitute around a quarter of total goods exports.
Merchandise exports, equivalent to about 15 per cent of India’s economy, contracted for the 15th straight month in February. They fell 5.66 per cent from a year earlier. The outlook for exporters remains bleak mainly due to the global slowdown, and annual exports could fall to near 260 billion dollars in the current fiscal year, compared with 310 billion dollars in the previous year.
India’s economy is estimated to grow at 7.6 per cent in the current fiscal year ending March. February imports fell 5.03 per cent from a year earlier.
Jason Adams is the new President of Lectra North America. His main objective will be to develop Lectra’s presence in the United States, Canada and Mexico and Central America in the automotive, fashion and furniture markets.
Before joining Lectra, Adams helped position Camstar and Apriso among the leading independent manufacturing execution system solution providers. At Camstar, he promoted the launch of the life sciences practice, which grew to 80 per cent of annual revenues. At Apriso, he developed the business in several existing and new markets, including automotive, industrial equipment, aerospace and defense, and medical device manufacturers.
He has proven himself with more than 20 years in the software and services industry. Lectra operates in integrated technology solutions dedicated to industries using fabrics, leather, technical textiles and composite materials. It is the world leader in the automotive field, with over 65 per cent of the market share in fabric cutting rooms for car seats and interiors as well as in airbag cutting. The company’s goal is to develop its activity in leather seat and interior cutting, where it has recently introduced new technology solutions with unequaled performance. In the fashion industry, Lectra is recognized for its design and patternmaking solutions.
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