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Voicing strong concerns over the government’s decision to halt gas supply to the ‘highly efficient’ captive power plants (CPPs) from Jan 01, 2025, Sohail Pasha, Chairman and Khhurram Mukhtar, Patron-in-Chief, The Pakistan Textile Exporters Association (PTEA), warned, the decision could lead to frequent power outages and voltage instabilities from the power distribution companies, severely impacting the textile sector.
Currently 480 captive power plants across Pakistan operate on the SNGPL network and another 800 on the SSGC network. All of these rely on gas-powered combined heat and power (CHP) systems for not only providing a consistent power source but also avoiding voltage fluctuations andprotecting the automated machinery used throughout the textile industry.
The textile sector has made heavy investments in these gas-based power plants, specifically to ensure a stable and uninterrupted energy supply for operations, Pasha and Mukhtar said. CHP systems being the second-largest consumers of RLNG after the power sector, discontinuing gas supplies could undermine the $19 billion textile export industry and putting millions of jobs at risk, they added.
The government’s decision could also hinder the industry’s ability to meet international commitments and fulfill orders for value-added products, the PTEA leaders noted. Given the existing RLNG supply contracts, halting gas supplies could create an RLNG surplus, adding financial strain to a sector already grappling with economic challenges, they opined.
Further, the PTEA leaders argued, in-house power generation from CPPs is more efficient and cost-effective than relying on the government grid, which incurs transmission and distribution (T&D) losses. Without immediate energy alternatives, the sector could face large-scale closures, posing a serious threat to Pakistan’s textile industry and export economy, they emphasised.
Outshining its rivals, French luxury company Hermes’ revenues increased by 11.3 per cent to €3.7 billion ($3.99 billion) in Q3, FY24, as per an estimate by analyst Jefferies.
Despite a sector-wide slowdown affecting labels across the high-end spectrum, Hermès's famously classic designs and tight management of production and stock have helped reinforce the label's aura of exclusivity and made the company one of the most consistent performers in the industry.
The slowest sales growth the brand witnessed was in the Asia Pacific region though sales in Japan rose by 1 per cent, notes Eric Du Halgouet, Executive Vice President.
The brand continues to face low sales in China. However, it hasn’t faced an additional decline in the market, adds du Halgouet. The brand is compensates for the low sales with higher average baskets, selling jewelry products, leather goods and ready-to-wear for men and women. It plans to continue investing in China and open a new flagship in Beijing next year, affirms Du Halgouet.
In its first comprehensive climate transition plan that outlines the company’s key strategies to cut greenhouse gas (GHG) emission, Levi Strauss & Co (LS& Co) has committed to achieving net-zero emissions by 2050. The San Francisco-based denim giant’s immediate target is to reduce emissions by 2030 and achieve carbon neutrality by 2050.
For this, LS & Co will focus on enhancing its own operations, partnering with suppliers to tackle Scope 3 emissions, and employing responsible governance throughout its business, says Jeffrey Hogue, Chief Sustainability Officer.
In its own facilities, LS&Co plans to invest in energy-efficient and renewable technologies, seek certifications under the US Green Building Council’s LEED program, and work with utility providers and landlords on decarbonisation efforts. A global energy management system already covers over 1,300 company-operated locations, providing valuable data on energy usage. Additionally, LS& Co has collaborated with Walmart and others on the Gigaton Power Purchasing Agreement, a virtual power purchasing agreement in the U.S.
The company will integrate climate-specific KPIs into supplier partnerships and procurement processes, with an aim to set science-based targets for key suppliers. To support their progress, LS & Co will facilitate financing and offer resources for energy and emissions reductions.
Investing in more sustainable, certified materials, and promoting circularity is another priority for LS&Co. As a commitment to sustainable innovation, the brand has launched initiatives such as Levi’s Circular 501 and Plant-based 501 jeans. To further embed sustainability, it plans to incorporate climate risks and opportunities into its annual strategy, seek third-party expert feedback, and leverage partnerships to advocate for climate-supportive policies. Executive compensation will also be linked to climate-related goals relevant to specific job functions.
In the near term, LS& Co aims to achieve a 90 percent reduction in Scope 1 and 2 GHG emissions by 2025, a 42 percent reduction in Scope 3 emissions from purchased goods and services for apparel production by 2030, and a shift to 100 percent renewable electricity in company-operated facilities by 2025. LS & Co also targets a 50 percent reduction in freshwater use in high-stress areas by 2025.
Marking a significant commitment to environmental, social and governance (ESG) responsibility, Italian luxury brand Canali has released its inaugural Sustainability Report.Created according to the Global Reporting Initiative (GRI) Sustainability Reporting Standards, the report highlights Canali’s dedication to integrating sustainable practices into its renowned craftsmanship.
With this report, Canali aims to balance its storied heritage with responsible innovation, reducing its environmental footprint and promoting long-term sustainable growth. Central to these efforts is the CAre project, launched in 2023, which brings all of Canali’s sustainability initiatives under one umbrella. Led by a dedicated Sustainability Committee, CAre reflects the brand’s commitment to continually enhancing its environmental and social practices, while ensuring strong governance.
Since 2021, Canali has embraced the Organisation Environmental Footprint (OEF) and Product Environmental Footprint (PEF) methodologies, tools recommended by the European Union to precisely measure environmental impact. These methodologies guide Canali in identifying areas for improvement and enacting meaningful changes across its operations. Producing exclusively in Italy, the brand not only minimises its carbon footprint but also honors Italian artisanal excellence.
Stefano Canali, President and CEO, Canali Group, remarks, this first Sustainability Report is a testament to the brand’s dedication to continuous improvement. The group is committed to elevating its environmental and social responsibility standards in alignment with the highest international guidelines to drive meaningful progress.
Kamran Arshad, Chairman, All Pakistan Textile Mills Association (APTMA), has urged Pakistan’s Monetary Policy Committee to reduce interest rates by 400 basis points to support the textile sector and boost exports.
Currently at an effective rate of 10.6 per cent, high borrowing costs are hampering the industry’s growth Arshad highlights. Emphasising on the need for immediate action, he notes, while inflation has eased to 6.9 per cent, the interest rate remains high at 17.5 per cent, creating significant challenges for the sector.
Lower interest rates are essential for economic recovery and job creation as the current rates continue to threaten the textile industry’s stability, Arshad argues. Reducing interest rates is crucial for economic revival and expanding employment opportunities,adds.
Earlier this week, Finance Minister Muhammad Aurangzeb indicated that the State Bank of Pakistan (SBP) might consider further interest rate cuts during the upcoming Monetary Policy meeting on November 4. The SBP has already reduced its benchmark rate by 450 basis points across three consecutive meetings, bringing it down from a peak of 22 per cent to 17.5 per cent.
Meanwhile, the government is pursuing a broader economic strategy aimed at increasing its tax share by up to 135 per cent. APTMA’s call for an interest rate reduction underscores the need for policy adjustments to support Pakistan’s textile industry and strengthen its export competitiveness.
Australia faces significant challenges with textile waste, as over 90 percent of discarded clothes have the potential to be reused or recycled. Yet, alarmingly, only 7 per cent of textiles are actually recycled, while approximately 50 per cent of household textile waste ends up in landfills. This mismanagement represents a considerable loss of valuable resources, emphasizing the urgent need for a shift towards a circular economy.
A recent study led by Alice Payne from RMIT University's School of Fashion & Textiles sought to investigate why Australians dispose of clothing irresponsibly. Funded by the Queensland Government and Kmart Group, this research is the first of its kind in Australia, aiming to gather data that could influence better waste management and consumer habits. The findings will be shared in a panel discussion at the Global Sourcing Expo, set for November 19-21, 2024, in Melbourne.
The scale of the problem
Marie Kinsella, CEO of the International Expo Group, points out that Australians rank among the world’s highest clothing consumers, with over 200,000 tonnes of clothing disposed of in landfills each year. She stresses the urgent need for waste reduction and the establishment of a robust circular economy. This view aligns with Alice’s research, highlighting the critical role of sustainable practices within the fashion and textile industry.
To understand Australian-specific clothing disposal behaviors, the research team conducted ten in-depth interviews with key stakeholders across the clothing value chain. These interviews identified critical data gaps, particularly regarding consumers' disposal habits and the influences behind their decisions to discard wearable versus unwearable clothing. Following these insights, a nationwide survey of 3,080 participants was conducted, ensuring representation across various demographics and regions.
One of the most surprising outcomes of the study is the revelation that age significantly influences clothing use and disposal behaviors. Contrary to initial assumptions, geographic location played a less impactful role. Older Australians tend to maintain smaller wardrobes and donate unwanted clothing more frequently, while younger consumers engage in diverse circular practices like clothing repairs and reselling. However, they also demonstrate a tendency to discard wearable items, indicating a need for targeted interventions across different age groups.
Confusion surrounding disposal options
A notable finding reveals that many Australians lack clarity on how to responsibly discard clothing. Approximately 32 per cent of respondents occasionally throw clothes into general waste, with 24 per cent placing them in home recycling bins. This highlights the pressing need for a national collection system for unwearable clothing, alongside trusted recycling pathways. “Clothing should remain in use for as long as possible,” Alice asserts, advocating for materials to be redirected towards recycling rather than ending up as waste.
The survey identified three distinct Australian consumer personas, which can guide the development of targeted behavior-change campaigns promoting sustainable clothing practices. These insights provide a valuable foundation for ongoing research into clothing use and disposal in Australia. The potential for repeated surveys enables tracking shifts in consumer behavior over time, ultimately contributing to a circular economy.
Conclusion: A collaborative path forward
To drive systemic change, Alice underscores the importance of collaboration among industry stakeholders, government bodies, and research organizations. She explains that utilizing these findings will help monitor Australia’s progress toward a circular economy. Ongoing measurement and analysis of consumer behavior will set benchmarks for improvement and identify areas needing further attention. Addressing textile waste in Australia is a shared responsibility, requiring active involvement from consumers, brands, and policymakers.
Jemmy Kartiwa Sastratmaja, Chair of the Indonesian Textile Association (API), attributed Sritex's bankruptcy to the global economic slowdown, which has led to a rise in Chinese textile products flooding the Indonesian market. He noted that rising inflation and interest rates worldwide have diminished purchasing power in key markets like the United States and the European Union, exacerbating the situation for local producers.
On October 23, 2024, the Commercial Court of Semarang City declared Sritex (SRIL) bankrupt, following a creditor's request to cancel its suspension of debt payment obligations. Haruno Patriadi, the court's spokesperson, confirmed the decision, which was led by presiding judge Muhammad Anshar Majid, and appointed a curator to manage the case.
In response to these challenges, Indonesia and several other countries are implementing trade barriers to protect their domestic industries from the influx of foreign products, aiming to stabilize local markets affected by the oversupply from major producers like China. Sritex, a prominent player in Indonesia's textile sector since 1966, now faces significant restructuring challenges.
India has imposed anti-dumping duties on five Chinese imports, including sulphur black and thermoplastic polyurethane, to shield domestic industries from cheap imports. Effective for five years, the duties cover isopropyl alcohol, sulphur black, cellophane transparent film, thermoplastic polyurethane, and unframed glass mirrors. The Central Board of Indirect Taxes and Customs issued separate notifications confirming the duties.
Sulphur black, commonly used in textile dyeing, leather, and paper, now faces up to $389 per tonne in duty, as total imports of this product reached $4.3 million in 2023-24. Duties have also been applied to products like cellophane transparent film, used in packaging, with a tariff of $1.34 per kg on imports worth approximately $60 million last fiscal year.
The Directorate General of Trade Remedies (DGTR), India's investigative arm, recommended these measures, finding Chinese imports underpriced and damaging to local players. Following further probes, the DGTR has initiated investigations into additional Chinese imports, including acrylonitrile butadiene rubber and cold-rolled electrical steel, based on concerns from domestic firms.
India’s anti-dumping measures align with World Trade Organization (WTO) guidelines, promoting fair competition and supporting the domestic textile sector. China remains India’s second-largest trade partner, yet India’s trade deficit with China hit $85 billion in 2023-24. The duties aim to balance this gap, leveling the field for Indian manufacturers against low-cost imports from China.
Karl Mayer Group has crafted an advanced training program tailored for flat knitting training courses in November and December 2024. This includes two specialized courses from KM.ON and Stoll: an online Create Design course and an in-house Create Plus course for M1plus users.
Create Design, running on December 5-6, 2024, focuses on digital design-to-market skills. It guides designers with basic flat-knit knowledge through efficient digital workflows, covering knitting structures, digital yarn usage, and exporting for 3D apparel programs. Small class sizes of up to 10 participants allow for immersive learning, with coach Goran Sidjimovski emphasizing hands-on training.
The CreatePlus course, scheduled in German from November 4-8 and in English from November 18-22, is a five-day in-person session exploring the new Create Plus software. Participants delve into techniques such as jacquard, intarsia, and multi-gauge knitting while learning advanced pattern creation and fully fashioned shaping.
Additionally, a new e-learning course on flat knitting basics is now available anytime and free, targeting fashion and textile newcomers. This self-paced module covers core techniques over six chapters and serves as an entry point for those interested in digital knitwear design.
After a prolonged 35-year legal struggle, the Gujarat High Court approved the sale of Aryoday Spinning & Weaving Mills Co Ltd’s 58,000-square-yard land in Ahmedabad’s Asarwa area for Rs 82 crore. This decision followed a protracted process, during which more than 60 per cent of the mill’s 3,285 workers died awaiting compensation after the mill’s 1989 bankruptcy.
Devbhoomi Agrifresh Pvt Ltd., seeking to buy the land, intervened after objections by other bidders delayed the proceedings. Advocate Dhimant Vasavada, representing the Textile Labour Association, stated that only Rs 55 lakh had been distributed to workers from prior sales of the mill's machinery, with most workers still awaiting their dues.
Justice Mauna Bhatt approved Devbhoomi Agrifresh’s bid, citing the court’s discretion to act in the best interests of secured creditors and the prolonged wait endured by workers. The court's decision marked the fifth attempt to sell the land at a fair price since 2016. The liquidation process, delayed by decades, highlighted the severe toll on workers who were denied timely justice and compensation.
