FW
Ijaz A Khokhar, Chief Coordinator of Pakistan Readymade Garments Manufacturers and Exporters Association (PRGMEA), is happy with the decision of the government to withdraw sales tax and custom duty on cotton import to meet the shortfall of the natural fibre in the country and to help the textile industry. He assessed the apparel sector at the apex of textile value chain starting from cotton and synthetic fibre. It is the least energy and capital intensive industry that plays a pivotal role in earning foreign exchange and provides extensive employment in the entire textile chain while exporting over $5 billion in textile products.
Ijaz said the apparel industry is an important engine for growth of the economy and noted that the steep increase in cotton yarn prices by 20 per cent had hit the export-oriented value added textile sector very hard. The skyrocketing prices of cotton yarn would have serious effects on value added exports and this increase of yarn prices will ruin the Government’s efforts to achieve export target, he added. Ijaz further stated to bridge the gap of trade deficit the government should provide a level playing field to the entire textile chain as the apparel industry is already suffering from lower productivity. The provision of competitively priced quality cotton yarn to value-added textile industry is the basic foundation on which export competitiveness is built and apparel segment faced tough competition from regional players.
For these reasons, PRGMEA appealed to the government to abolish all duties the import of cotton yarn and further, it should be imported freely from anywhere to encourage value addition, reduce cost of doing business and bridging the gap between production and consumption. The Economic Coordination Committee (ECC) of the cabinet should also give approval of duty relaxation on cotton yarn import in line with the benefits being provided to the spinners, he concluded.
As per the Pakistan Bureau of Statistics the country's export of readymade garments surpassed the $1 billion mark in the first five months of the current fiscal year, up by 15 per cent, official figures say. Increase in export of readymade garments now grows by $130.535 million to $1.018 billion in July-November 2017 from $888.456 million in July-November 2016.
The volume the export of readymade garments surged by 11.45 per cent or 1.542 million dozens to 15.008 million dozens in July-November 2017 from 13.466 million dozens. In November 2017, readymade garments export surged by 14.28 per cent or $26.918 million to $215.465 million from $188.547 million in November 2016.
Export quantity of readymade garments also mounted by 9 per cent or 256,000 dozens to 3.153 million dozens in November 2017 from 2.897 million dozens in November 2016.
Jeanologia has contributed to a saving around 8 million cubic meters of water in 2017 with their technology. This is the equivalent quantity of water needed for human consumption in one year in Miami city. Saving has been possible thanks to the laser, ozone and eflow technology in use in the 60 countries Jeanologia is present in. Not only water but these technologies also allow reduction in energy and chemical use, at the same time as increasing industrial productivity.
Enrique Silla, CEO at Jeanologia, says they constantly work with the objective of achieving a completely sustainable industry with leading brands and providers to guarantee zero pollution, eliminate harmful emissions and residues, as well as dramatically reducing water, chemical and energy consumption in the production process.
As per World Economic Forum demand for water will increase 40 per cent in 2030. EIM -Environmental Impact Measuring software has been developed the only software on the market capable of analyzing the environmental impact within the sector of garment finishing. Every day water as a resource is becoming scarcer, and the optimization of its consumption is fundamental.
That is why the company has set out as its challenge for the coming years to save 85 per cent on water and chemical use with the first ever Laundry 5 Zero. It is a pioneering wash system that combines laser, ozone, eflow and H2Zero technology, guaranteeing “zero” waste and “zero” pollution.
The global hosiery market has grown at a robust pace over the past few years and rising awareness of consumers for quality, durability, fashion style and personal grooming is main reason to observe rapid growth during the forecast period. Over the past few years, it has been noticed that not the women hosiery segment is rising but the demand for such products are showcasing a robust growth from the men’s segment due to increasing trends in apparel and fashion. The hosiery is anticipated to observe a rapid growth in terms of both volume and value during the forecast period.
Apart from this, propagation of modern retail formats such as supermarkets, discount stores, and pharmacy stores is resulting in increasing product visibility. This enables easier accessibility to clothing products such as hosiery to consumers. The increasing sales from online commerce sector is fuelling the growth of global hosiery market as it saves the time of buyers and offer various discounts on the products. Thus, the online store is expected to be the fastest growing segment which is anticipated to expand the growth of global hosiery market over the forecast period.
Robust economic growth along with rising personal disposable income in Asian countries such as India and China is expected to create more demand for comfortable and stylish hosiery which is expected to boost the growth of Asia-pacific region during the forecast period.
The Ministry of Industry has planned to resume restructuring program for the textile industry. Achmad Sigit Dwiwahjono, Director General of Chemical, Textile and Multifarious Industries, says after the evaluation, the restructuring program for textile machinery and equipment was very effective in encouraging the growth of the industry, especially in increasing utilization.
Some representatives of the Ministry of Industry visited China recently to explore cooperation related to the continuation of the textile machinery industry restructuring program. Sigit says before dismissed, the textile machinery restructuring program using funds from the state budget, in the future the government will seek other sources of funding that does not burden the state finances, one of them comes from China.
According to him, funding from the Bamboo Curtain country has borrowing interest cheaper than domestic commercial financing. Some of the financial institutions that are explored include China Development Bank (CDB) and Silk Road Fund, which is a financial institution formed by the Government of China. One of the conditions to be able to get finance from China is that the recipient must purchase a machine that is also produced by the country. The Ministry of Industry hopes that at least this year the restructuring program will continue with experiments for several companies first.
The need of the textile industry to replace the machines that are considered old is estimated at Rs 400 billion per year. In the previous restructuring program, the government provided a subsidy of 10 per cent of the investment value or the machine price and for each company a maximum of 5 billion.
in a tie-up with retail chains, Khadi has finally entered shopping malls in what is seen as an attempt to tap the middle-class market it has been losing to newbie Patanjali.
Last week, Khadi made a beginning through a tie-up with retailer Globus to launch Khadi Korner, a shop-in-shop concept, at an outlet in Noida. The plan is to move to Chennai, Varanasi and Ahmedabad later this month.
Next month, the Khadi & Village Industries Commission (KVIC) will go for a similar launch in Mumbai in tie-up with Cotton Bazaar. Discussions are also taking place with Shoppers Stop and Big Bazaar.
KVIC had stayed away from shopping malls as it did not have the financial clout to spend around Rs 2-5 lakh a month on leasing space. So, it strategised a different model where it will have a revenue-sharing arrangement with retailers, which could range between 10 per cent and 20 per cent of sales.
KVIC Chairman, V K Saxena analysed, "Gone are the days when loyal customers travelled long distances to reach Khadi Bhandars. Today, availability is one key focus area and we want to be available at the doorstep."
Saxena revealed that their initial sales numbers are promising. On Sunday, sales were estimated at around Rs 28,000, just a fraction of the over Rs 25 lakh that the flagship store in Delhi's Regal Building recorded.
Currently, they are offering garment and cosmetics but depending on the feedback more products could be added. Since the last few years, Ramdev's Patanjali, which was asking for a tie-up with KVIC, has ramped up its presence in shopping malls, especially through the franchisee route and has eaten into KVICs market for products such as spices and honey
Transparency Market Research in a study reports the need for better and smarter textiles to support evolving industrial applications that will encourage the introduction of enhanced textiles using innovative textile chemicals. From airbags to fire resistant textiles, top players in global textile chemicals market are focusing on enhancing their facilities and investing in R&D to cater to the evolving consumer demands.
Players such as The Dow Chemical Company, are launching antimicrobial technology that protects textiles against the growth of harmful bacteria. Given this scenario, companies will have to put in place strategies for meaningful mergers and acquisitions to grab more market share. This move will also help them add to their existing portfolio of products.
A TMR analyst notes, "Strengthening economies and rising agricultural activities, increasing healthcare infrastructure, expanding clothing industries, growing number of participants in the sporting activities, and other industries that employ skilled human resource are driving the demand for textiles, thereby augmenting the textile chemicals market."
The demand for textile chemicals will grow exponentially in the coming years due to their ability to enhance the characteristics of textiles by adding strength and versatility. The rise of the packaging industry is also expected to boost the global textile chemicals market in the near future.
The harmful effects of chemicals on the environment and to human health is a serious challenge the industry faces. The disposal of water from textile chemical industries into the local water bodies has created not just polluted water bodies but also a water shortage. Furthermore, the quality of the soil is being degraded by these chemicals, thereby creating a severe impact on the human life.
Despite many issues faced by industry the global textile chemicals market has a bright future. For example, the use of chemicals to add to the strength of the textiles will make textiles a notable option to replace conventional construction materials such as wood, concrete, and glass amongst others.
TMR analysts have estimated that the opportunity in the global textile chemicals market will be valued at US$ 29.15 bn by 2024 rising from US$ 21.02 bn in 2015. The steady growth of 3.7 per cent in this market from 2016 to 2024 will be attributable to the soaring demand for home furnishings. Asia Pacific holds the biggest share in the overall textile chemicals market in terms of volume.
Top apparel manufacturing and exporting companies from Ludhiana in Punjab have agreed to set up manufacturing units in Bihar post a meeting of their management with top state government officials recently. This initiative is projected to generate over 20,000 jobs. The company executives also met a delegation of the Bihar Chamber of Commerce and Industries.
It was reported that the Ludhiana delegation, comprising Harish Dua, president of Knitwear and Apparel Exporters Organisation and owner of KG Exports, Narinder Chugh of Million Exports, Rajat Sood of Oriental Dyeing and Pawan Garg of Worldwide Textiles Private Limited, met Bihar industries department Principal Secretary S Siddharth, Bihar Industrial Area Development Authority (BIADA) Managing Director RS Shrivastava and other officials recently.
These manufacturers supply to big international brands and designers in France, Germany and the US.
It may be noted that the state has earmarked a land tract of 115 acres in Bihta on the outskirts of capital Patna to set up an apparel and textiles park.
The Pakistan Readymade Garments Manufacturers and Exporters Association (PRGMEA) on Tuesday said the promised abolition of all duties on the import of cotton yarn would overwhelmingly enhance value-addition, leading to enhanced exports and reduced the trade deficit.
Ijaz Khokhar, Chief Coordinator PRGMEA, in a statement said, “The PM Shahid Khaqan Abbasi, in a recent meeting with PRGMEA, has assured us to pass directives to the textile division of the Commerce Ministry to move a summary to the Economic Coordination Committee (ECC) for removal of all duties and taxes on cotton fibber import.”
“We hope the PM will fulfil his promise of addressing all issues of apparel sector on a priority basis and a decision to this effect will be implemented at the earliest to provide level-playing to the value-added textile sector.
“The PRGMEA had requested the PM during his visit to the Sialkot Chamber of Commerce and Industry to do way with all the duties on cotton yarn import to help cut cost of doing business and bridge the gap between production and consumption.
“During the meeting the PM was also urged to restore the role of industrial associations in disbursement of duty drawbacks under the revised PM’s exports incentive package to ensure transparency,” he added.
Labour costs in Myanmar is expected to see a 33 per cent increase this year, and sourcing costs may also follow.
The country’s National Committee for Minimum Wage has agreed to set the daily salary wage for workers at 4,800 kyat ($3.55) up from the current 3,600 kyat ($2.66) that has been in place since 2013, and a 33 per cent hike.
This is based on an 8-hour work day, six days a week, garment workers in Myanmar will be earning a minimum wage of $85 a month.
Though the hike may seem significant percentage-wise, it comes in lower than the 55 per cent increase to 5,600 kyat ($4.14 a day, $99 a month) that workers and unions had been demanding. Of course the unions aren’t happy about it.
Secretary of the Cooperating Committee of Trade Unions (CCTU) and a former workers’ representative of Central Labour Dispute Arbitration Committee U Ye Naing Win was reported to have said, “We are not satisfied with the committee’s daily wages of K4800. We [workers] are asking for increase in wages since we are starving. They shouldn’t ask for a discount.”
The country’s Labour Union Federation, however, has objected to even raising the wage rate to 4,800 kyat, even though Myanmar’s Minimum Wages Act of 2013 calls for a review of wage rates every two years; which technically should have happened in 2015 and again in 2017.
For now, unions in Myanmar are demanding that the government consider the actual cost of living when evaluating an appropriate raise, especially in light of impending rental fee increases. Though the wage panel has set its rate, the committee will take suggestions and objections in the coming weeks and set a final figure within 60 days.
Other low-cost sourcing countries, like Mauritius, Mexico and Cambodia, have been increasing wages of late and correspondingly labour costs are set to climb this year.
