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India plans to set up readymade garment manufacturing units in each of the eight north eastern states to boost the textile industry in and export of readymade garments from the region. The garments would be exported to neighboring countries. Nearly Rs 18 crores will be provided for each readymade garment manufacturing unit. All the units would be run by small entrepreneurs. Around 300 women would be engaged in manufacturing garments in each unit.
The units are expected to meet the demand for garments from police and paramilitary forces in every state besides government officials as well as school uniforms. The government-run National Building Constructions Corporation would set up the units in Assam, Arunachal Pradesh, Manipur, Meghalaya, Nagaland, Mizoram, Sikkim and Tripura. The foundation stones in Nagaland and Manipur were laid recently.
The textile ministry and state governments would observe the functioning of these units but would not play any role in their day-to-day work. The Northeastern states border China, Myanmar, Bhutan, Bangladesh and Nepal. Some of the states have trade ties with some of these countries, especially Bangladesh and Myanmar. India’s share in the global apparel and garment market is now just 3.7 per cent as against Bangladesh’s 6.1 per cent and Vietnam’s 4.3 per cent.
Aquarelle India, which currently has four units in Bangalore, now plans to build a new unit outside the metro. The company aims to invest Rs 100 crores in the current financial year to open new units. As a part of CIEL, formerly known as Deep River Investment (DRI), Aquarelle plans to set up new unit over 5.5 acres area, which will have 850 buttonhole sewing machines.
The company currently has production capacity of producing 3.5 million shirts per year and aims to double capacity within two years. Catering to brands like Diesel, CK, Tommy, Esprit and Ben Sherman it also wants to invest in the design-to-deliver concept.
The company , which now wants to move production to labour-intensive areas, expects the government to create training centres in rural areas, for the apparel industry. The company also has units in Mauritius producing around 2.5 million shirts per year with major exports to the US-based labels like J Crew, Dillards, Eddie Bauer, Joseph Abboud and Men’s Wearhouse, among others. It also has the capacity of producing three million units in Madagascar with one factory in Antananarivo and another in Antsirabe.
The exceptional number of visitors attending the various events was the result of a synergy developed between these impressive fashion trade shows featuring raw materials to finished garments. The Italian fashion network benefitted from the debut of finished clothing and footwear products inside Chic, accompanied by Milano Unica for the textile-accessories division, through the coordination between the Ice Agency, and the economic and institutional support of the Ministry of Economic Development.
After seven editions, the event is considered an essential point of reference. “The combined presentation with the fashion production chain is an example of the importance of creating a valid network, especially when it comes to distant markets,” said Silvio Albini, President of Milano Unica.
A total of 104 exhibitors displayed their offerings to 3,500 select visitors, the figures perfectly in line with the S/S edition held in March 2014. The Chinese market, is continuously evolving and currently undergoing a period of adjustment following the introduction of ‘new normality’, a result of the anti-corruption law passed by the government of Xi Jinping, welcomed Italian textiles and accessories with a new outlook. Following the constant growth in sales, a temporary halt in exports, especially for the woolen division had begun to worry Italian entrepreneurs operating at the initial phases of fashion production. However, after numerous seasons of overstocking, Chinese buyers showed a growing need to source fabrics.
As forecasted by experts at Bain & Company, the slowdown affecting the woolen division is expected to diminish, and export should become stable or even show signs of growth, thanks to a recovery of the ‘uniform’ market. Large Chinese companies that purchase formal outfits will create an important opportunity for classic-formal production. Italian firms are now witnessing change in the buying behavior of Chinese consumers, who are now moving to upper casual and sportswear products. This new tendency has motivated designers to innovate.
The passion of Chinese designers is demonstrated by special attention to exclusive products and services that only the Italian textile network is able to offer, like innovation, research and taste, that too in limited quantities. The Asian giant now seems to prefer small amount of unique products. Despite economic changes, the country's potential for growth is still very high because of the rise in purchasing power of the middle class consumers.
India's cotton exports have begun to pick up. For the first time this season ending September, Indian cotton became the cheapest in mid-February. Lower shipping charges to nearby destinations give the country an added advantage. Prices are at least five cents a pound cheaper than US cotton and two or three cents lower than African cotton.
Demand from China is almost nil but there have been enquiries from Bangladesh, Pakistan, Turkey, Indonesia and Vietnam. China has not issued any additional import quota this year. It has been trying to reduce record stocks that have been built up over the last couple of years. China’s ending stock will account for 56 per cent of global inventory despite its efforts to cut it.
Currently ample cotton is available in India, while the US and Brazil have almost sold out their produce. However, exports from India since the beginning of the season ending September have been lower compared with the same period a year ago. Exports are estimated to be 58 per cent lower compared with last year.
Though exports are picking up, there is no danger of the domestic market being starved of supply. The practice of spinning mills in south India buying cotton from West Africa later in the season could also help keep prices on leash.
Bangladesh plans to create a new sponsoring authority to oversee the country’s textile mills, making it mandatory for them to be registered with it. All existing textile units, according to the proposed law, will require getting registered with the authorities for obtaining support from the government and other trade bodies including financial institutions. If a textile factory fails to get enlistment from the sponsoring authority, it will not be allowed to work with the enlisted one under sub-contracting arrangement.
Believing textile mills have been set up in an unplanned and scattered way, the country feels now it is time to bring those under a system since safety and environmental issues have now emerged as a major obstacle for the country in satisfying overseas buyers. Mill owners say they are not against enactment of the law but not all textile mills have the ability to set up effluent treatment plants and are capable of ensuring all types of compliance issues in their factories. They say the government should make a plan to provide the necessary technical and financial support to small and medium capital-based factories.
According to the draft act, if factory owners fail to enlist their factories with the sponsoring authority, then the factory owner might be awarded up to three months’ imprisonment or a fine.
Invista's brand Cordura is launching a new range of fibers designed primarily for the development of knitted and woven fabrics. The high tenacity polyester fiber range is air jet textured for enhanced abrasion resistance, tensile and tear strength.
Cordura fabric is known for its resistance to abrasions, tears and scuffs. Finished Cordura fabrics made using these qualifying fibers can be printed, laminated or used in uncoated forms and are suited for products such as luggage, upholstery and backpacks, footwear, military equipment, tactical wear, work wear and performance apparel, outdoor clothing, high performance sportswear.
Cordura Nyco and Cordura Denim fabrics designed for work apparel feature the same Invista T420 technology. These nylon 6,6/cotton blend fabrics offer the comfort benefits of cotton-rich fabrics combined with exceptional durability and are particularly suitable for those environments where working conditions are at their most harsh. Cordura Nyco fabric is based on an intimate blend of cotton and T420 nylon 6.6 fiber. It is said to offer comfortable durability in military and tactical uniforms while providing abrasion resistance and no melt no drip thermal protective performance.
These fibers will be displayed at the upcoming Techtextil trade fair for technical textiles and nonwovens, Germany, May 4 to 7.
www.cordura.com/
Textile mills in Tamil Nadu have started to use the shipping route, instead of road, to transport cotton from Gujarat. As against 1,200 containers of cotton transported by sea last year from Gujarat to Tamil Nadu, the volume this year increased to 2,600 containers till January. It is expected to touch about 4,400 containers by the end of this month.
The cost of transporting one bale of cotton by road from Gujarat to Tamil Nadu works out to nearly Rs 850. It is between Rs 640 and Rs 790 by ship. During the last three months, Southern India Mills’ Association (SIMA) has held discussions with the Indian National Ship Owners’ Association and the revised rates for transport by ship range between Rs 590 and Rs 730 for a bale of cotton. While one shipper is offering the service now, two more have expressed interest.
Some textile mills bring cotton from Gujarat by ship and even send return cargo (fabric or garments) to the northern states in the same container. SIMA had written to the Tamil Nadu chief minister, seeking steps to bring down the cost further. Most of the cotton from Gujarat or Maharashtra arrives at the Tuticorin port.
Tamil Nadu accounts for one-third of the textile business in the country and textile mills in the state account for 44 per cent of the total spinning capacity of the country.
An estimated one-third of Lesotho's textile and clothing production will be decimated if the African Growth and Opportunity Act (AGOA) is not renewed in September. Lesotho is a small landlocked country entirely surrounded by South Africa. It is the largest sub-Saharan African garment exporter to the US, accounting for 30 percent by value and 28 per cent by volume of exports from the region to America. About 80 per cent of the country’s textile and garment exports are US-bound.
Before AGOA, the Lesotho textile and clothing industry employed around 20,000 people, with South Africa and Europe being the principal export markets. In the years following the establishment of AGOA in 2000, the focus shifted to US and employment in the sector rose to 55,000. This has fallen back to 44,000 since the abolition of the World Trade Organization’s multi fiber arrangement (MFA), which sparked more intense competition from Asia.
Lesotho is the jeans capital of Africa, producing 26 million pairs of denim jeans annually. It also makes 70 million knitted garments a year.
Currently around 75 per cent of the industry’s investment is from China, Taiwan and Southeast Asia. While the early days of AGOA saw the development of poor quality temporary businesses, MFA abolition saw many of those players eliminated.
The Gandhigram Trust has plans to tap high-end natural dye textile market in the southern districts. To begin with, it will make available its natural dyed khadi saris and other textile materials through its sales outlets at Madurai and Dindigul.
The main objective of making natural dye saris in modern designs is to expand the market base and boost income of weavers and familiarise khadi products among the next generation. Already the trust has conducted a survey to study the changing preferences and tastes of young women with regard to colors and designs of saris. To give a new look to khadi textiles, the trust has roped in textile design experts and the Craft Council of India for production, marketing, support and training in weaving and designing.
Research is on to manufacture natural dyed khadi materials. All colors would blend easily with other colors in the natural dye yarn. But in chemical dyes, some colors would not match with some others. The trust plays a little with colors and uses only traditional designs for the border to give an aesthetic look to saris.
Khadi natural dye textile products were received well at the Natural Dye Bazaar organised in association with Cooptex in Chennai recently.
www.gandhigram.org/
Pakistan will impose a standard sales tax on cotton in the Budget 2015-16 with a view to generating about Rs 50 billion in revenue. Currently sales tax exemption is available on local cotton and a 5 per cent sales tax is applicable on the import of cotton. However, in the upcoming budget, the government has proposed imposition of sales tax on cotton.
The government has set a cotton target for the next season (2015-16) at 15.49 million bales against the revised target of 13.48 million bales for the outgoing season (2014-15). The government had set an initial target of 15.1 million bales for the current season (2014-15). However, later the target was revised three times to finally set at 13.48 million bales due to multiple issues including water shortage, rains/floods, and shortage of certified seed.
A notification grants exemption on import and supply of plant and machinery not manufactured locally subject to certain conditions. Sales tax was charged at a reduced rate of 5 per cent on such plant and machinery, subject to the same conditions.
