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Leading technical textiles manufacturer, Garware Technical Fibers reported a 9 per cent Y-o-Y growth in its net profit to Rs 46.8 crore during Q1, FY25. The company’s profits before tax during the quarter rose by 9 per cent, affirms VayuGarware, Chairman and Managing Director.
The company’s net sales during the quarter increased by 3 per cent Y-o-Y to Rs 336.3 crore from Rs 325.7 crore in the same period the previous year. Profits before tax increased to Rs 62.1 crore as compared to Rs 57.1 crore in Q1 FY24.
During Q4, FY24, all the plants of Garware Technical Fibers had operated near full capacity. However, this did not affect the company’s results for Q1 FY25 as much of its production was shipped to Norway and Chile, with billing scheduled for the second quarter.
The company’s domestic business continued to grow in Q1 FY25, with the geosynthetics division poised for a strong performance this fiscal year, states Garware. The firm anticipatesa stronger profit growth in Q2 FY25, which would set the stage for robust results in the first half of the year, he adds.
Leading polyester producer, Shinkong Synthetic Fibers Corp has invested $10 million in Ambercycle’s first state-of-the art commercial facility to enhance its production capacity for decarbonised polyester- Cycora.
This collaboration builds on three years of joint efforts that combined Ambercycle’s molecular regeneration technology with Shinkong’s expertise in the premium polyester market to produce regenerated yarns.
Shay Sethi, Co-founder and CEO, Ambercycle, says, this investment enables the company to expand its operations and advance the boundaries of sustainable textile production.
The global demand for decarbonised polyester is projected to increase to approximately 7 million metric tons annually by 2026, from 5 million metric tons in 2015, as more brands pursue circular materials to achieve their sustainability targets.
Eric Wu, Chairman, Shinkong Synthetics, adds, by investing in this new facility, the company reinforces its commitment to pioneer a future with decarbonised polyester. This collaboration will enhance its ability to deliver high-performance, sustainable products to the global market.
Ambercycle plans to begin operations at the new facility in 2026. Thefacility will significantly boost the company’s capacity to support circularity and scale next-generation materials in the textile industry, aligning with global initiatives to transition towards more decarbonised production practices.
Lululemon, the athletic apparel giant, has become synonymous with high-quality yoga wear and comfortable workout gear. But in recent years, they've also set ambitious sustainability goals under the banner ‘Be Planet’. This initiative encompasses several areas, aiming to reduce Lululemon's environmental footprint.
Be Planet in action
Under this plan, Lululemon is committed to using more sustainable materials. By 2025, they aim for at least 75 per cent of their products to be made from recycled, renewable, or responsibly sourced fibers. They're also exploring innovative fabrics like plant-based nylon, a significant shift from traditional petroleum-based materials. Lululemon has increased transparency in its supply chain, disclosing information about factory conditions and environmental impacts.
Water conservation is another pillar of Be Planet. They aim to reduce freshwater use intensity in manufacturing by 50 per cent by 2025. This involves implementing water-efficient processes and technologies. Lululemon sources 100 per cent renewable electricity for their owned and operated facilities, significantly reducing their carbon footprint. Indeed, these initiatives haven't gone unnoticed. Lululemon has earned praise for its efforts. Transitioning to renewable energy and using recycled materials are positive steps towards a greener future for the fashion industry.
Greenwashing clouds
However, Lululemon also faces accusations of greenwashing. Critics point out that the company still relies heavily on synthetic materials like polyester, which have a significant environmental impact during production. Additionally, the vast majority of Lululemon's emissions come from their supply chain (Scope 3 emissions), which are outside their direct control. While they're encouraging suppliers to adopt sustainable practices, the effectiveness of these efforts remains to be seen.
The points of concern are:
Focus on materials: While Lululemon has made progress in using sustainable materials, critics argue that the company is not addressing other environmental impacts, such as carbon emissions from transportation and manufacturing.
Offsetting claims: Some environmental organizations have raised concerns about Lululemon's reliance on carbon offsets, suggesting that these do not adequately mitigate the company's overall carbon footprint.
Worker welfare: While Lululemon has improved labor conditions in some of its factories, critics claim that the company still falls short in ensuring fair wages and safe working environments throughout its supply chain.
An ongoing sustainability journey
Lululemon's sustainability journey is ongoing. They acknowledge the challenges and are working to address them. To truly silence greenwashing claims, they'll need to demonstrate measurable progress in reducing their supply chain impact and achieve greater transparency throughout their manufacturing processes.
Lululemon's Be Planet initiative represents a significant commitment to sustainability. While questions remain, their efforts serve as a springboard for discussions about the fashion industry's environmental responsibility. As Lululemon navigates these challenges, their path will be closely watched to see if they can truly deliver on their Be Planet promises.
The 2024 USFIA Fashion Industry Benchmarking Study offers a detailed examination of the current landscape and strategic priorities shaping US fashion companies' global operations. Released annually by the United States Fashion Industry Association (USFIA) in collaboration with the University of Delaware, this year's report unveils critical insights into how industry leaders are navigating unprecedented challenges, from economic volatility and geopolitical tensions to supply chain disruptions and regulatory complexities. The study, is a deep dive into the business landscape of 30 leading US fashion companies, paints a picture of an industry under pressure. As the fashion industry grapples with multifaceted risks and opportunities, the study provides a comprehensive analysis of key findings that underscore the sector's resilience and adaptive strategies amidst a rapidly evolving global environment.
Rising sourcing risks amidst economic uncertainty
The study reveals significant concerns among respondents regarding sourcing risks. Over half of the surveyed companies cited managing forced labor risks and navigating an uncertain US economy as their top challenges. The emergence of issues like shipping delays and geopolitical instability underscores the evolving landscape of global sourcing. Almost 45 per cent respondents rated “Protectionist trade policy agenda in the United States” as a top five business challenge, up from 15 per cent in 2023.
Sourcing diversification strategies
To mitigate these risks, US fashion companies are diversifying their sourcing bases. A notable trend is the increase in sourcing from multiple countries, with nearly 70 per cent of large companies now sourcing from 10 or more countries. This diversification aims to enhance resilience against disruptions while allowing flexibility in supply chain management strategies through 2026. Nearly 80 per cent said they plan to source from the same number or more countries till 2026, in order to reduce sourcing risks effectively.
Focus on forced labor mitigation
Addressing forced labor remains a critical priority. Companies have intensified efforts to comply with regulations like UFLPA, with an average implementation of six distinct practices to ensure supply chain transparency. Over than 90 per cent said they are “Making more efforts to map and understand our supply chain, including the sources of fibers and yarns contained in finished products.” Notably, there's been a significant increase in mapping entire supply chains, reflecting a proactive approach to risk management. And another 80 per cent said they “intentionally reduce sourcing from high-risk countries” in response to the UFLPA’s implementation.
Declining China exposure
Reflecting geopolitical tensions, a growing number of US fashion companies are reducing their dependence on China. This trend, accelerated by perceived risks and regulatory environments, sees 80 per cent respondents planning further reductions in Chinese sourcing over the next two years. Nearly 60 per cent no longer use China as their top apparel supplier in 2024.
Exploration of new sourcing opportunities
Amidst these shifts, companies are exploring new sourcing destinations. India has seen increased utilization rates, surpassing traditional Asian peers like Bangladesh. This year, more respondents reported sourcing from India (89 per cent utilization rate) than from Bangladesh (86 per cent utilization rate) for the first time since the survey began. Also, nearly 60 per cent said they plan to increase apparel sourcing from India over the next two years. Moreover, countries like Guatemala, Mexico, and Egypt are gaining traction, driven by proximity and trade agreements like CAFTA-DR and USMCA.
Importance of trade agreements
Respondents emphasized the renewal of trade agreements such as AGOA, crucial for sourcing from Sub-Saharan Africa. Overwhelming support exists for extending AGOA for another decade, highlighting its integral role in global supply chain strategies.
Recommendations and future outlook
Looking ahead, the study outlines a dynamic five-year outlook for the US fashion industry, emphasizing the need for adaptive hiring strategies and continued focus on social responsibility and sustainability. As companies navigate competitive sourcing landscapes and evolving regulatory frameworks, maintaining flexibility and proactive risk management will be paramount.
The findings also underscore the industry's trade policy priorities for 2024, advocating for clarity and support in navigating international trade dynamics. The 2024 USFIA Fashion Industry Benchmarking Study provides a comprehensive snapshot of the sector's current challenges and strategic responses. As global conditions evolve, US fashion companies are recalibrating their supply chains and operational strategies to foster resilience and sustainability in a complex global marketplace. This report serves as a crucial resource for stakeholders seeking insights into the evolving dynamics of the fashion industry and the strategic imperatives shaping its future.
Sustainability takes centerstage
Intertextile Apparel 2024 is set to reinforce its commitment to sustainability in the textile industry by launching the new Econogy Hub. The show, known for over a decade of promoting greener industry practices through its "All About Sustainability" zone, is now elevating its efforts by adopting Messe Frankfurt’s global TexpertiseEconogy concept. This rebranded and enhanced focus will include not only the Econogy Hub but also a range of eco-conscious features and innovations.
The fair will feature seven eco-focused group pavilions, three sustainable display areas, an ecoBoutique, and cutting-edge innovations showcased in the Digital Solutions Zone. These initiatives aim to highlight the latest in sustainable textile practices and products, offering attendees a comprehensive view of the industry's shift towards eco-friendliness.
Econogy hub: A new focal point
The Econogy Hub will be the heart of Intertextile Apparel's sustainability efforts. This new zone will host eco-fabric suppliers, certification providers, and other key players in the sustainable textile sector.
Key players within the Econogy Hub include industry giants like Bureau Veritas Group, specializing in testing and certification, and Cotecna Group, offering accreditation for various sustainability standards. Eastco Industries, a GOTS-certified woven fabric manufacturer, will showcase organic and recycled fabrics. And TextileGenesis, a Lectra company, is introducing an innovative traceability platform to ensure the authenticity and provenance of sustainable textiles.
Eco-focused group pavilions and display areas
The fair will also feature eco-focused group pavilions, including those from Ecocert, Hyosung, Lenzing, Lycra, Oeko-Tex, Prutex, and Sorona. These pavilions will showcase over 130 downstream suppliers, with Prutex making its debut to highlight products like Prueco, the first chemically regenerated nylon.
Sustainable display areas will be presented by Lycra, Birla Cellulose, and Idole/Mitsubishi. Meanwhile, the ecoBoutique will offer a curated selection of products from brands like Unifi and ZhangjiagangVcare, further demonstrating the industry's commitment to eco-friendly practices.
Digital solutions zone: Navigating the future of textiles
In addition to its sustainability focus, Intertextile Apparel 2024 will introduce the Digital Solutions Zone. This zone will feature cutting-edge technologies and innovations that are shaping the future of the textile industry. Key exhibitors include:
Shima Seiki: A Japanese multinational known for its industry-leading knitting machinery, design systems, and CAD/CAM systems. Their technology has applications across fashion, sportswear, healthcare, and even automotive and aeronautical sectors.
Symmpix: A premier digital solutions provider, Symmpix will showcase AI-powered fabric search, AI pattern generation, 3D visualisation tools, digital product creation, virtual catwalks, and showrooms.
Both Shima Seiki and Symmpix will also participate in the fair’s Digital Transformation Forum, presenting their innovations and engaging in panel discussions on how digital solutions are revolutionizing the textile industry.
Fringe programmes and collaborations
As part of the broader fringe programme, attendees can also look forward to presentations on technology and solutions that enhance supply chain transparency, AI-driven textile product development, and innovations in recycling. Avery Dennison will discuss integrated solutions for supply chain transparency, while Unifi will present on Repreve powered by Textile Takeback, a product that converts textile waste into recycled polyester products.
Co-organised by Messe Frankfurt (HK) Ltd, the Sub-Council of Textile Industry (CCPIT), and the China Textile Information Centre, Intertextile Apparel 2024 will be held at the National Exhibition and Convention Center in Shanghai. The event will run alongside Yarn Expo Autumn, CHIC, and PH Value, providing a holistic view of the entire apparel textile value chain, with sustainability at its core.
In the dynamic world of ready-made garment (RMG) exports, a recent report by Care Edge reveals a noteworthy shift: India's apparel industry is steadily narrowing the gap with Bangladesh, traditionally a dominant player in the global market.
According to a Care Edge report, although Bangladesh's RMG exports in 2023-24 were over three times that of India's, this ratio narrowed to 2.5 in the first quarter of the current fiscal year (Q1FY25). This indicates a considerable increase in India's market share, fuelled by a confluence of factors, including socio-political challenges in Bangladesh and proactive measures to boost India's competitiveness.
Key findings:
• Export ratio narrows: In the fiscal year 2023-24, Bangladesh's RMG exports were over three times that of India. However, during the first quarter of the current fiscal year (Q1rFY25), this ratio decreased to around 2.5, indicating India's growing presence.
• Factors driving change: This shift is attributed to a combination of factors, including:
o Socio-political challenges in Bangladesh: Recent upheavals have impacted Bangladesh's production and export capabilities.
o Proactive Indian initiatives: Various government and industry-led initiatives have bolstered India's competitiveness in the RMG sector.
Data Highlights:
|
Country |
RMG Exports (FY 2023-24) |
RMG Exports (Q1 FY25) |
Growth (Q1 FY25 YoY) |
Ratio(Bangladesh/India) |
|
Bangladesh |
$46.99 billion |
$10.21 billion |
-17% |
3.2x |
|
India |
$16.61 billion |
$4.01 billion |
4% |
2.5x |
Comparative Strengths: Bangladesh vs. India
|
Factor |
Bangladesh |
India |
|
Cost |
Lower labor costs |
Competitive labor costs |
|
Infrastructure |
Well-developed RMG infrastructure |
Improving but lags behind Bangladesh |
|
Scale |
Large production capacity |
Growing production capacity |
|
Flexibility |
Less agile due to large-scale operations |
Greater flexibility and adaptability |
|
Sustainability |
Increasing focus on sustainable practices |
Emerging leader in sustainable fashion |
While Bangladesh remains a formidable force in the global RMG market, India's apparel industry is making significant strides. By capitalizing on its strengths and addressing key challenges, India has the potential to further expand its market share and establish itself as a major player in the years to come.
Victoria’s Secret & Co. (VS&Co) has announced the appointment of Hillary Super as its new CEO, effective September 9, 2024. Super, who succeeds Martin Waters, will also join the Board of Directors. In the interim, Chief Financial and Administrative Officer Timothy (TJ) Johnson will serve as CEO until September 8, 2024. Waters will remain with the company as an advisor until August 31, 2024, to ensure a smooth transition.
Super, with nearly 30 years of retail experience, previously served as CEO of Savage X Fenty and Global CEO of Anthropologie Group. Her expertise spans various retail sectors, and she is recognized for her ability to drive profitable growth by anticipating consumer needs.
Donna James, Chair of the Board, praised Super's leadership qualities and vision, expressing confidence in her ability to lead VS&Co into its next phase of growth, particularly in North America. James also acknowledged Waters' contributions, including the company’s digital and international expansion, and the successful separation from its former parent company.
Super expressed enthusiasm for joining VS&Co, emphasizing the potential for growth within the brand's iconic status and its strong beauty business. She aims to position VS&Co as the global leader in intimate apparel.
Additionally, the company released preliminary financial results for the second quarter of 2024, expecting net sales and earnings per share to meet or exceed prior guidance. Johnson highlighted the improved sales trends in North America and strong margin performance.
Two major international textile federations; International Textile Manufacturers Federation (ITMF) and the International Apparel Federation (IAF) will host a joint conference on Sep 08-10, 2024 at Samarkand in Uzbekistan
Titled ‘Innovation, Cooperation & Regulation - Drivers of the Textile & Apparel Industry,’ the event will focus on the key factors shaping the future of the industry, and is the first time the two federations have held their conference jointly.
To open on Sep 07, 2024 with the ITMF board meeting, the conference will attract over 500 high-level representatives from international organizations, textile companies, brands, financial institutions, and retailers. They will discuss and address issues critical to the continued development and sustainability of the global textile and apparel industry.
Participants will get an opportunity to hear the addresses of Stephen Lamar, President, American Apparel & Footwear Association (AAFA); Dirk Vantyghem,General Director, European Apparel and Textile Confederation (EURATEX) and representatives of numerous industry leaders, including Cotton Analytics (USA) and Indorama Corporation (Singapore). Participants will discuss topics including artificial intelligence, regulation, digitalisation, ESG and supply chains.
Additionally, the conference will feature the ITMF Awards Session, where the winners of the ITMF Innovation & Sustainability Award 2024 and the ITMF International Cooperation Award 2024 will be announced.
To be organised in cooperation with Uzbekistan Textile and Garment Industry Association (Uztextileprom), this landmark event marks a significant milestone for Uzbekistan, the historic center of the ‘Silk Road’. Last year, the country’s textile industry exported around $3.5 billion to over 75 countries and is seeing significant growth today. By 2026-end, Uzbekistan plans to increase its exports to $6.5 billion. This event affirms Uzbekistan's growing role in the global textile supply chain and underscores the importance of international cooperation and dialogue in driving the industry's future.
From 3.2 times those of India during FY24, Bangladesh's RMG exports narrowed to around 2.5 times of India’s exports in Q1, FY25, as per a report byCareEdge Ratings.
This shift was a result of not just socio-political upheavals in Bangladesh but also because of various initiatives taken to enhance the competitiveness of Indian RMG exports. The ongoing socio-political uncertainties in Bangladesh may push global RMG brands and retailers with significant operations in the country to diversify their sourcing strategies, particularly if the crisis extends beyond a quarter or two.
In such a scenario, India is poised to benefit by capturing approximately 6 per cent-8 per cent of Bangladesh's monthly export orders in the near term and 10 per cent in the medium term. This shift could translate into a monthly incremental export opportunity of around $200-250 million in the short term and $300-350 million in the medium term for India.
India has sufficient capacity to increase its RMG exports by 20 per cent -25 per cent, taking advantage of the available production capabilities in the sector. With the ongoing China+1 sourcing strategy, global RMG brands and retailers have limited alternatives, such as India, Vietnam, and Cambodia, to replace Bangladesh. Among these, India is well-positioned to capitalize on this opportunity.
Bangladesh's RMG exports declined by 17 per cent decline in Q1 FY25 compared to the previous year, while Indian RMG exports grew by 4 per cent during the same period. This trend highlights India's growing role in the global RMG market.
The Lenzing Group, a global leader in regenerated cellulose fibers, has once again achieved platinum status in the EcoVadis CSR rating, marking its fourth consecutive year at the top. EcoVadis, an international sustainability ratings provider, places Lenzing among the top one percent of over 130,000 companies evaluated globally.
This year, Lenzing excelled particularly in sustainable procurement and ethics, while also improving in labor, human rights, and certifications. The EcoVadis framework assesses corporate policies, actions, and reports across four key areas: environment, fair working conditions, ethics, and sustainable procurement.
CEO Stephan Sielaff expressed pride in this achievement, highlighting Lenzing’s dedication to advancing sustainability in the textile industry. He emphasized the company’s commitment to transitioning from a linear to a circular economy, a core component of their "Naturally Positive" sustainability strategy.
Lenzing’s transparent approach, detailed in its annual sustainability report, was a significant factor in securing the platinum rating. The company continues to set ambitious goals to strengthen its sustainability efforts, driving progress toward a more circular business model in the textile industry.
