FW
Citing inflationary pressures that dampened consumer spending on apparel despite ongoing discounts, Indian clothing retailer Arvind Ltd reported a 40 per cent drop in profit during Q1, FY25.
The company’s consolidated net profit declined to Rs393.1 million ($4.7 million) during the quarter, from Rs658.7 million in the corresponding quarter of the previous year.
Indian textile manufacturers faced a challenging demand environment throughout fiscal year 2024, as consumers were hesitant to spend on discretionary items. The retail inflation rate for the April-June quarter hovered around 5 per cent, primarily due to high food prices, which led to reduced spending on non-essential items.
Arvind Ltd also experienced a 1 per cent decline in revenue from operations, with revenue from its core textile segment—which constitutes 73 per cent of total sales—dropping by 5 pre cent year-on-year. The company also highlighted issues such as ‘illegal workers' unrest’ that disrupted operations at its largest factory for 21 days, impacting its woven and denim segments and causing an estimated Rs2 billion loss in revenue.
Total expenses for the company rose by 1 per cent, further squeezing its margins. The advanced materials segment, which includes fabrics and protective gear for construction work, also saw a decline of about 4 per cent.
At the 14th BRICS Trade Ministers’ Meeting in Moscow last week, Sunil Barthwal, Commerce Secretary, emphasized on the need for collective efforts to provide outcome-oriented support for MSMEs, which form the backbone of the industrial ecosystem and drive economic growth.
Emphasising on the importance of integrating MSMEs into Global Value Chains (GVCs), Barthwal reiterated the ‘Jaipur Call for Action issued during India's BRICS Presidency in 2023, which focused on enhancing access to information for MSMEs. He also praised the Russian Presidency for its efforts to compile essential information about MSMEs among BRICS members.
He emphasised, international cooperation in areas such as research and development, technology transfers, joint ventures, and business development opportunities are keys to supporting MSMEs.
Further, referring to India's success in developing an open-source India Stack of critical Digital Public Infrastructure (DPI),Barthwal expressed India's willingness to share its experience with BRICS countries in areas like digital payments, e-commerce, national identity, banking, and education.
He highlighted the need for strengthening the multilateral trading system with the World Trade Organisation (WTO) at its core. He also stressed the importance of effective functioning of Joint Value Chains, expanding MSME interactions, and leveraging India's success in digitalisation and e-commerce. Additionally, he emphasised the relevance of cooperation among Special Economic Zones (SEZs).
The BRICS Trade Ministers' Meeting underscored the critical need for collaboration and support for MSMEs within the BRICS countries. By focusing on key areas such as integration into GVCs, digital infrastructure, and international cooperation, BRICS nations aim to bolster the MSME sector, driving economic growth and industrial development.
The Australian Fashion Council (AFC) and Sunset Lover have launched an initiative to save the iconic Australian-owned knitting mill, Silver Fleece, and preserve the cherished craft of Australian wool knitting. The revitalisation of the 73-year old mill is being led by Melanie and Dean Flintoft, Founders, Sunset Lover.
Established in 1951, Silver Fleece is renowned for its Australian craftsmanship and employs 20 skilled staff and technicians, primarily women, including younger employees dedicated to preserving the artisan craft.The knitting mill provides a premier platform for producing highly sought-after Australian-made products.
JaanaQuaintance-James, CEO, AFC, states, investing in Silver Fleece showcases the excellence and resilience of Australian craftsmanship, supports the female workforce, upholds the legacy of the Australian wool and textile industry, and helps reduce environmental impact.
Currently operating at 50 percent capacity, the mill has substantial opportunities for expansion due to rising demand for Australian-manufactured and sustainable products. Potential clients include Qantas, South Australian Police, and thousands of Australian schools and not-for-profit sporting clubs.
The mill’s Japanese knitting machines and established contracts, including producing jumpers for the Australian cricket team and school wear for more than 75 schools, highlight its significant potential,says Dean Flintoft.
There is immense potential to revitalise this mill, and investors who value local manufacturing to raise $1 million are being sought. This investment will safeguard jobs, protect Australian craftsmanship, and have a long-term positive impact on the wool industry, adds Flintoft.
The Adelaide-based mill entered administration last month, and a general meeting on June 26 resolved to wind up the company. Liquidators Daniel Lopresti and Simon Richard Miller have been appointed, and $1 million needs to be raised to prevent liquidation and secure the future of this iconic business.
Celebrating the theme, ‘Somos’ (‘We Are’), the 35th edition of Colombia's premier fashion event, Colombiamoda concluded successfully in Medellín. Attended bymore than 600 brands, the event connected over 12,000 buyers from 40 countries with more than 70,000 visitors, according to the event’s organiser, Inexmoda,
Inexmoda described this year’s Colombiamoda as a tribute to the last 35 years of Colombian fashion, highlighting the unique factors that make the country's textile industry globally competitive. A new feature in this year’s event was the City Circuit methodology, which showcased different parts of Medellín beyond the traditional Plaza Mayor venue, emphasising fashion's transformative power.
Sustainability was a focal point this year, with the Circular Fashion Pavilion showcasing brands committed to eco-friendly practices, from material selection to garment production, as highlighted by PolitécnicoGrancolombiano University.
The event kicked off on July 22 with designer NicolásRivero’s runway show. Titled ‘Proceso’ (Process), Rivero’s collection showcased 30 garments made from natural fibers like linen, silk, alpaca wool, cotton, and banana fiber stitches, emphasising material exploration and textile craftsmanship.
Notable among the daily runways was Beatriz Camacho’s show. In collaboration with Bronzini, an affordable clothing brand sold in Éxito supermarkets, Camacho presented ‘Despertarse en La Habana’ (To Awaken in Havana) to 1,200 attendees. Despite economic challenges, Camacho emphasised the importance of democratic and inclusive fashion, using eco-friendly fibers even for mass-produced items.
Peruvian designer Sandra Weil, making her Colombiamoda debut, closed the event. Founded in Mexico City, her eponymous brand has grown over 12 years, as reported by El Colombiano.
Known as Colombia’s fashion capital, Medellínhas a rich textile history dating back to Coltejer’s establishment in 1907. The city is a pivotal economic hub, with the textile sector exporting $8,974 billion pesos ($2.23 million) in 2018, accounting for 42 per cent of Colombia’s total textile exports. According to Inexmoda’s Fashion Observatory February 2024 report, Medellín represented 9.9 per cent of the national textile market in 2023, with companies exporting textiles worth $53.6 millionlast year.
Both the Export Promotion Bureau (EBP and the Bangladesh Bank have presented contrasting data on apparel export earnings by Bangladesh during the period spanning July-May ’23-24.
While the Export Promotion Bureau (EPB) reported a 2.85 per cent growth in apparel exports earnings during the period, figure from the Bangladesh Bank (BB) indicate a 5.2 per cent decline in RMG earnings for the same period.
According to BB's corrected data, Bangladesh earned $33.04 billion from RMG exports in the first eleven months of FY 2023-24, compared to $34.86 billion in the previous year. This represents a significant downward revision from EPB's earlier estimate of $43.85 billion for the same period. Compared to $42.63 billion the previous year, The EPB's figure indicates a 2.86 per cent growth.
Conversely, BB's calculations show a 5.3 per cent decline in net income from garment exports to $17.60 billion from $18.58 billion the previous year. Additionally, revenues from woven products decreased by 5.1 per cent to $15.40 billion from $16.22 billion the previous year, as per the BB data.
Exporters believe, various factors contributed to the decline in income from the garment industry. One of these includes the significant decline in the unit cost of garments, alongside a slight downward trend in work orders due to global political unrest and the Russia-Ukraine war.
Mohammad Hatem, Executive President, Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), affirms, rising fuel, electricity, and gas prices have increased production costs. However, buyers have failed to raise their product prices. Consequently, exporters have been unable to secure orders, he explains. Alack of cooperation from banks and harassment by customs and revenue officials is further weakening the competitiveness of these exporters, he adds.
Global political unrest, the Russia-Ukraine war, and the economic slowdown are also leading to a negative growth in export earnings in Bangladesh, adds Hatem.
SM Mannan Kochi, President, Bangladesh Garment Manufacturers and Exporters Association (BGMEA), adds, issues like increased production costs, including higher worker wages and electricity and fuel prices, are making it challenging for exporters to compete on price. Compounding this issue is the reduction in product prices by buyers, leading to a decline in exports.
To sustain positive growth in export earnings, the government needs to ensure uninterrupted gas and power supply, adds EPB.
The Government aims to set up seven PM Mega Integrated Textile Region and Apparel (PM MITRA) parks in Greenfield/Brownfield siteswith world-class infrastructure including plug and play facility. To be set up with an outlay of Rs. 4,445 crore by 2027-28, each of these parks will generate 1 lakh direct and 2 lakh indirect jobs on completion.
One of these parks is being set up in Virudhanagar Tamil Nadu. A Special Purpose Vehicle (SPV) i.e. ‘PM Mega Integrated Textile Regions and Apparel Park, Tamil Nadu,’ has already been incorporated for the project with the Government of Tamil Nadu holding 51 per cent stake in the SPV and remaining 49 per cent being held by the Government of India. The project has achieved both the environmental Clearance as well as layout approval from Directorate of Town and Country Planning. The government has also signed MoUs worth Rs 1,200 crore for investment in the park.
The Textile Ministry had earlier introducedthe Scheme for Integrated Textile Park (SITP) to support the development of textile parks across the country with world-class, state-of-the-art infrastructure. The scheme was in implementation up to March 31, 2021. However, the Scheme the government has now subsumed the scheme under the umbrella Scheme of Textile Cluster Development Scheme (TCDS) and allotted an outlay of Rs.568.15 Crore for completing ongoing projects only.
The cabinet aims to soon extend the benefits of production-linked incentive (PLI) schemes in the textiles sector. The government’s plans include lowering the investment threshold for the textile PLI for man-made fabric (MMF) garments and technical textiles, and expandingthe range of MMF products covered. Additionally, the government also plans to include apparel in the scheme. The schemeis yet to gain momentum, as per a government official.
Separately, the commerce and industry ministry proposes to invest Rs2,600 crore in the leather and footwear sectors.
Currently, the PLI program spans 14 sectors, including mobile manufacturing and specified electronic components, medical devices, automobiles and auto components, pharmaceuticals, specialty steel, telecom and networking products, and white goods. The total budgetary allocation for various PLI schemes has been increased by 88 per cent to Rs 16,092 crore for FY25. All these 14 PLI schemes were approved with an outlay of Rs1.97 lakh crore, and by the end of May, the cumulative disbursement to beneficiaries had reached around Rs9,700 crore.
The cabinet is set to decide on extending the ProductionLinked Incentive (PLI) schemes to additional products in textiles, food processing, and pharmaceuticals, according to sources. Currently, the PLI programme spans 14 sectors, including mobile manufacturing, electronics, medical devices, automobiles, and pharmaceuticals.
The budget for PLI schemes has been significantly increased by 88 per cent to Rs 16,092 crore for FY25. While the PLI schemes for electronics and white goods have gained traction, those for textiles and steel are lagging.
To address this, the textile PLI for man-made fabric (MMF) garments and technical textiles may see a reduced investment threshold and the inclusion of more MMF products. The government is also considering adding apparel to the scheme.
The initial outlay for the 14 PLI schemes was Rs1.97 lakh crore, with cumulative disbursements reaching approximately Rs9,700 crore by the end of May.
In addition, the commerce and industry ministry has proposed new PLI schemes worth Rs3,489 crore for toys and Rs2,600 crore for leather and footwear, which are pending cabinet approval. A token provision for these plans was included in the budget announced on July 23.
A leading innovator in textile printing solutions, Zydex has been selected for the Apparel Impact Institute’s (AII) Climate Solutions Portfolio (CSP). This prestigious recognition underscores the company’s commitment to reduce the environmental footprint of the fashion industry through innovative and sustainable solutions.
Dr Ajay Ranka, Chairman & Managing Director, Zydex Group, says, this selection reflects the company’s dedication to providing detailed impact data and sustainable solutions.
The CSP serves as the industry’s premier clearinghouse of vetted implementation programs and partners, aiming to activate a registry of sustainable solutions that encourage collective action and widespread implementation. Zydex’s vetting as a CSP Registrant highlights its reduction potential in various use cases and its dedication to providing detailed impact data.
Zydex’s Epricon printing system represents a groundbreaking advancement in textile printing, utilising co-polymer acrylic binder chemistry to deliver ultra-soft prints with depth, brightness, and a feel comparable to reactive prints. This innovative technology eliminates the need for washing processes, reduces print rejections, and enhances productivity and profitability. Extensive trials have confirmed its performance on cotton, viscose, and their blends, positioning it as a viable alternative to traditional reactive printing methods for light and medium shades.
The Madhya Pradesh Government has signed new agreements with the Tiruppur Exporters’ Association (TEA), the Southern India Mills’ Association (SIMA), and the Indian Cotton Federation (ICF) to encourage the cultivation of Extra Long Staple (ELS) cotton.
Madhya Pradesh is known to grow the best kind of ELS, says J Thulasidharan, Chairman, ICF. Most of its ELS is sold in the Tamil Nadu market. The federation also aims to establish a Cotton Development Boardto boost cotton productivity and acreage in the state, he adds.
SIMA also plans to establish demonstration farms for certain kinds of cotton seeds pursue commercial distribution of the crop.
The TEA will encourage the development of cotton crop in Madhya Pradesh by facilitating more investments in the industry. It will also work on the skill-development facilities in the state and provide consultancy, assistance with plug-and-play facility setup, and boost the designing of garment clusters design.
