FW
Sangam’s net sales for the December quarter were Rs 441.93 crores as compared to Rs 472.54 crores during the September quarter. Net profit was Rs 0.16 crores for the December quarter as against Rs 9.72 crores for the September quarter. EPS was Rs 0.04 for the December quarter as compared to Rs 2.47 for the September quarter.
Net sales were Rs 441.93 crores for the year as compared to Rs 423.18 crores during the earlier year. Net profit was Rs 0.16 crores for the year as against Rs 3.76 crores for the previous year. EPS was Rs 0.04 for the year as compared to Rs 0.95 for the preceding year.
Net sales were Rs 1390.68 crores during the nine month period as compared to Rs 1237.81 crores during the nine month period in the preceding year. Net profit was Rs 14.06 crores for the nine month period as against Rs 5.40 crores for the nine month period the previous year. EPS was Rs 3.57 for the nine month period as compared to Rs 1.37 for the nine month period the previous year.
Sangam, which opened in 1984, is a vertically integrated unit, starting from yarn right up to garments. It does cotton and synthetic yarns, denim fabrics, suiting fabrics, PV suitings.
The bright prospects of knitted fabrics market are due to a variety of factors such as the positive growth prospects of the textile industry and the increasing popularity of knitwear among the millennial population.
The adoption of next-gen knitting technologies has led to enhanced business efficiency and productivity for manufacturers. Leading players are focusing on enhancing sustainability and quality of their products to increase their footprint in this highly competitive marketplace.
China leads the growth of the knitted fabrics market in the Asia Pacific region with a whopping 61 per cent share of the global sales of knitted fabrics. China is one of the top clothing exporters in the world, as it accounts for over one-third of the EU’s apparel and textile imports. Domestic manufacturers in China are rapidly transforming their manufacturing strategies with digitalization and automation to bolster their sales of high-quality knitting fabrics worldwide.
Developing countries in the Asia-Pacific other than China are foraying into the knitted fabrics market with the rapidly escalating knitwear industry in India and Bangladesh. Further, favorable regulatory frameworks, increasing competition, and low labor costs are improving the export profitability for knitted fabric businesses in India and Bangladesh. Demand for weft-knitted fabrics will remain higher vis-à-vis wrap-knitted fabrics, owing to the low cost and versatility of weft-knitted fabrics.
Bangladesh is planning to establish a new textile hub for its apparel sector under the public-private partnership (PPP) scheme. The Bangladesh government has finalised the names of 16 textile mills that will be reopened through PPP. Steps towards finalising the opening of two among them have been completed These mills are located in Dhaka’s Demra and Gazipur’s Tongi. They are Ahmed Bawani Jute Mills and Kaderia Jute Mills.
Bangladesh’s cabinet has given its final approval to the PPP contract document. Private operators will run the mills under design-build-operate-maintenance and transfer method for a period of 30 years.
Bawani Jute Mill at Demra has been awarded to consortium of Tanzia Fashions, who will pay contract fees of Tk 2.5 crore annually. After 30 years of operation, they will hand it over to the government. Kaderia Jute Mills at Tongi has been given to consortium of Orion. It will also operate the mill for 30 years and will give the government contract fees of Tk 5.20 crore annually.
Falling yarn prices have hit spinners in Bangladesh. One reason is illegal import of low-cost yarns. Another reason is availability of the product imported under the bonded warehouse facility. Some businesses are importing yarns and fabrics under the bonded warehouse facility and later on selling the duty-free items in the open market at low prices.
Currently Bangladesh imports viscose worth billions annually which can be easily saved by producing its own raw materials. Production of viscose fiber proved to be more profitable than RMG production. Bangladesh has made a deal with China for building a viscose fiber plant from jute using Chinese technology and finance.
There are seven garment factories in Bangladesh among top 10 environmentally-compliant readymade garment factories around the world. The country has a target of reaching $50 billion in textile exports by 2021. Bangladesh frequently hosts yarn shows, to introduce latest sophisticated yarn, fabrics, accessories and emerging technologies for textile and garment industries. These enable textile and apparel industry buyers to meet local and overseas textile and yarn manufacturers face to face for the best qualities and reasonable prices.
The global athletic footwear market is expanding at a CAGR of 5.3 per cent. Footwear refers to garments worn on the feet which basically serve as protection from dampness, cold, roughness, dust and heat while walking, standing and running. Athletic footwear includes shoes used in exercise, sports, aerobics, hiking and walking.
Technological advances in the athletic footwear industry have enabled companies to manufacture quality products. Consumers are willing to spend more on footwear owing to the adoption of high-quality raw material and the use of machines that produce accurate and precise products keeping in mind the comfort of consumers. Companies are also focusing on adopting 3-D printing technology with an objective to produce quality shoes in shorter time.
Running and walking shoes dominate the global athletic footwear market. Wide availability in different price ranges followed by daily use by the mass population is expected to propel the growth of this segment. Economy footwear is widely favored by all age groups. Men dominate the global athletic footwear market. Online retail is expected to be the fastest growing segment owing to growing penetration of e-commerce in countries including India and China followed by ease and convenience of shopping. Asia Pacific is the most significant market and holds the largest market value and volume share.
Strong growth in jeanswear is expected in developing markets. South America leads this growth with a 12.1 per cent, while the rest of the world is set to increase in value by 19.7 per cent during the period. Jeans is a category that has surpassed trends, allowing consumers to buy any jeans style they prefer without being out of step with fashion.
The major driving factors are rising disposable income of individuals and increasing preference for wearing denim jeans. The US is predicted to maintain its position as the largest jeans market globally, with China following in second place. Nearly half of China’s jeans production stays inside the country. Around 22 per cent of the jeans manufactured in China are traded outside of traditional retail markets in exchange for goods or services rather than currency.
Denim jeans are a specific type of trousers made of denim or dungaree cloth. Denim jeans, a significant part of the clothing and apparel industry, are mostly popular among the young. Denim jeans provide street style fashion to lifestyle. Adding leather boots gives a rough look. Denims jeans are a tough and durable material, cost effective clothing to wear and stylish at the same time.
"The axes of global trade are shifting, amid a surge in commerce between emerging economies in the global South. The dynamics may lead to a rethinking of sourcing and pricing strategies in the year ahead. That’s why “Trade 2.0” is one of the 10 big trends to watch out for in 2019 reveals the McKinsey’s latest ‘State of Fashion’ report, written in partnership with the Business of Fashion (BoF). As 2019 begins, fashion companies find themselves in a crosscurrent of trade-related news flow."
Recent talk of trade shifts between the United States and some of its key trading partners has brought forth the inherent sensitivity of fashion to policies and politics that shape cross-border trade.
Trade tensions to lead to disruption
The axes of global trade are shifting, amid a surge in commerce between emerging economies in the global South. The dynamics may lead to a rethinking of sourcing and pricing strategies in the year ahead. That’s why “Trade 2.0” is one of the 10 big trends to watch out for in 2019 reveals the McKinsey’s latest ‘State of Fashion’ report, written in partnership with the Business of Fashion (BoF). As 2019 begins, fashion companies find themselves in a crosscurrent of trade-related news flow. A sharp rise in trade tensions between the United States and other large economies seems set to increase costs for some players and increase the risk of disruption.
While China and the United States are raising tariffs against each other, China is trying to make some imports cheaper. A Chinese government decision to cut import duties led LVMH to reduce prices by 3 to 5 per cent in July 2018 on some items sold in China. In September 2018, China reduced tariffs for textiles and construction materials to 8.4 per cent, from 11.5 per cent. Any reduction of tariffs usually must be offered to all countries equally under World Trade Organization rules, but according to China, these US goods are subject to retaliatory tariffs.
Brexit to impact fashion companies across the world
A report by the UK Trade Policy Observatory suggests due to high level of exports, reliance on international talent, and
dependence on raw materials from abroad, the UK textiles, apparel, and footwear industry will be one of the hardest hit by the country’s exit from the European Union in March 2019. Brexit will also affect fashion companies in other countries, particularly those being paid in sterling.
The US fashion sector is also facing trade-related risks. According to the United States Fashion Industry Association’s 2018 Fashion Industry Benchmarking Study, “protectionist trade policy agenda” in the United States is the number one business challenge. Before 2017, it never ranked higher than eight. The United States has announced tariff hikes on $200 billion worth of goods from China, including clothing.
Companies plan shift from China
Some fashion companies have begun to reconsider their presence in, and exposure to, countries where tariff barriers could further increase the cost of doing business. Puma, Steve Madden, and Wolverine World Wide are among companies that stated they would consider moving production out of China. Many companies had begun this process before the trade tensions mounted, but they cite the recent developments as a tipping point.
New trade routes being developed
While concern over trade tensions is rising, new agreements are being signed and new trade routes being developed. The EU has recently entered into new agreements including clothing and apparel with Canada, Mexico, Japan, Singapore, Vietnam, and several countries from Eastern Europe.
Finally, the Comprehensive and Progressive Agreement for Trans-Pacific Partnership and Regional Comprehensive Economic Partnership (RCEP) will enable more free trade between Asia and South America and within Asia.
Overall, trade-related forces will drive two key dynamics in 2019. Escalating trade tensions will see international brands rethink their sourcing strategies, perhaps to the benefit of countries involved in newly negotiated trade agreements. A further increase in South–South trade, especially between emerging countries in the Asia–Pacific region, is likely. Fast fashion, which depends on short lead times, will need to find new strategies to maintain delivery speed and production quality.
India was the partner country at Ambiente, Germany, February 8 to 12, 2019. The show offered Indian exporters a great opportunity to display a whole gamut of home, lifestyle and fashion products. A series of events took place at Ambiente, which included a brand image promotion seminar on India as a profitable destination for sourcing handicrafts, cultural performances, theme setting by designers, a live demonstration by master craftpersons and a GI craft display.
The brand image promotion seminar drew huge crowds as it projected India’s strength as a profitable sourcing destination for handicrafts to buyers who attended the seminar. The cultural performances were one of the main attractions for the august gathering who were mesmerized by the enchanting, lively and colorful performances especially the fusion performances.
The event showcased India as one of the best home, lifestyle and fashion supplying nations in the world. Designers Ayush Kasliwal and Sandeep Sangaru curated these special spaces and set up restaurants using cane and bamboo products of the northeast region. One section celebrated products with everyday designs and another focused on both established and emerging craft entrepreneurs.
India has a huge potential for exports of home décor and life style products and through this fair was able to attract the attention of the world.
Aarvee Denims and Exports’ net sales were Rs 176.94 crores for the December quarter as compared to Rs 178.59 crores during the September quarter. Net profit was Rs 0.32 crores for the December quarter as against a net loss of Rs 0.20 crores for the September quarter. Aarvee Denims is a global player in textile industry.
Net sales for the year were Rs 176.94 crores as compared to Rs 194 crores the previous year. Net profit for the year was Rs 0.32 crores as against Rs 1.76 crores for the previous year. EPS for the year was Rs 0.14 as compared to Rs 0.75 for the previous year.
Net sales for the nine month period were Rs 573.37 crores as compared to Rs 603.04 crores during the nine month period the previous year. Net profit for the nine month period was Rs 0.69 crores as against Rs 4.78 crores for the nine month period last year.
Workers at the West German textile and clothing industry will get 4.9 per cent in wages and salaries and a one-off payment of €340 over the next two years. This is what employers and IG Metall have agreed after a 14-hour negotiation. The company is planning security in a highly unstable economic situation. This difficult situation has determined the negotiations until the last minute.”
Under the agreement, workers will first get a one-time payment of €340. From August 1, 2019, the wages and salaries increase by 2.6 per cent; from September 1, 2020 by 2.3 per cent. There will also be improvements in semi-retirement; the trainees' and the holiday pay. The conclusion has a term of 24 months.
