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Nandan Denim (NDL) has reported a net profit of Rs 15.50 crores for the first quarter of 2015-16 as against Rs 11.47 crores in the corresponding period in 2014-15, a rise of 35 per cent. Net sales for the quarter at Rs 280.50 crores were higher by 6 per cent over previous fiscal’s same quarter net sales of Rs 263.68 crores. NDL reported healthy EBITDA and PAT margin at 16.5 percent and 5.5 per cent respectively.
The company reported EBITDA of Rs 46.23 crores during the quarter compared to Rs 41.13 crores in the corresponding period last year, an increase of 12 per cent. EPS stood at Rs 3.40. During the quarter, the company reported 14 per cent of revenues from export markets. It exports to 28 countries.
Commenting on the performance, Deepak Chiripal, CEO, Nandan Denim said, “The company is following its well defined charter of growth and we are pleased with the performance so far. A disciplined approach in line with the long term strategy would enable us to further cement our position in the industry.”
NDL, a part of Chiripal Group, is second largest integrated denim fabric company and has one of the largest manufacturing capacities in the world. The company commenced its operations in 1994 with textile trading business and forayed into textile manufacturing in 2004. It currently manufactures denims, cotton fabrics and khakis.
www.chiripalgroup.com
The recent free trade deal between the EU and Vietnam may prove a challenge to Vietnam’s neighbour, Cambodia. The agreement offers Vietnam duty-free exports to the EU and may not have an immediate impact, but would eat into similar advantages the region enjoys in the long-term, in the near future. The pact between the two economies, would, do away with 99 per cent of tariffs for selected Vietnamese sectors. This includes, garment and rice industries, which are the mainstays of Cambodia’s economy.
Ken Loo, Secretary General of Garment Manufacturer Association of Cambodia (GMAC), says the new agreement FTA would certainly affect Cambodia’s garment sector, though it would take time. Vietnam will enjoy duty-free exports only in seven years (after sanctioned). The Vietnamese agreement stipulates that garment exports to the EU should only use Vietnam-made fabric, while Cambodian garment exporters can source fabric from anywhere, Loo added. He feels that the impact will be good for Vietnamese items that can make use of the domestic fabric.
Vietnam also enjoys the advantage of locally made raw materials, which would be augmented considering the dearth of local supply in Cambodia, feels Piet Holten, President of Pactics Cambodia, a manufacturer of fabric cases for sunglasses in Siem Reap.
The process of twisting fibres together to make yarn is making a comeback these days. Sarah Anderson of Snohomish, Washington, author of ‘The Spinner's Book of Yarn Designs’ (Storey Publishing, 2012) says that now, textile artists want to control the front end of their yarn. They can pick the wool and silk together and blend the two to make the yarn they want. Anderson adds that there was a renaissance in knitting around 15 years ago and now many of those knitters have started to spin. One can control the weight, texture and colour, by spinning yarn yourself. Besides, today’s fibres are made from plant stock as well, such as wood pulp, and synthetic fibers, such as nylon.
Rachel Romine, a longtime spinner and knitter who works at her family's shop Paradise Fibers, in Spokane, Washington says that many spinners like to try out every fibre available. She’s seen artists spin feathers, shredded newspaper or pet hair into yarn. Anderson argues knitting and crochet, spun yarn can be used in weaving, rug hooking, needlepoint, crewel embroidery and tatting, among other textile crafts.
Natural fibres such as wool, cotton, silk and linen, were spun into yarn during ancient times, with a winding stick, and later with a hand spindle. In the 11th century, with the invention of the spinning wheel in Asia and its entry in Europe around 200 years later, spinning experienced its first renaissance, and the Western textile industry was born.
The Saurer Group has erected a new plant in Gujarat. The project houses world class production facilities which include a sourcing hub for the whole group and service stations for several units like Saurer Embroidery. It has been set up to cater to demands in the domestic as well as export markets. The project allows Saurer to blend German technology with Indian experience and provide customers the latest generation, world class products.
In the initial stage, the factory will manufacture the new Zinser models 71 and 72 both for conventional and compact ring spinning. With up to 1920 spindles, this will be the longest ring frame in the world. The next step would see all the variations of Zinser ring spinning machines and superior automation to be produced at the facility.
Zinser is the only ring spinning machine manufacturer with four ring spinning technologies: conventional short staple, compact short staple, conventional long staple and compact long staple. The new factory would help Saurer produce weighing arms and spindles with double capacity and would also include the addition of a stamping facility within the premises.
The continued support and dedication of Saurer’s top management along with that of the Indigo Project Team allowed Saurer to have the facility ready in record time.
saurer.com/
Cheap imported fabrics, power cuts and a rise in production costs are making it difficult for Nigerian textile traders. Working capital will assist in the retooling of operational textile mills, as well as resuscitate about 80 closed mills and 23 ginneries that have been shut down across the country. Although several factories have benefited from government intervention to revive the country’s textile industry, manufacturers say monetary support alone will not fix the problem.
Electricity supply is below 20 per cent and the business environment is not really good enough for Nigerian products to compete with Chinese imports. Since manufacturers cannot produce enough material, this means textile traders down the line must rely on imports, much of which is smuggled.
At the same time, importers have tightened the supply chain, insisting on upfront payment since the local currency was devalued. In the face of stiff Asian competition, manufacturers are asking for government protection. Until such interventions happen, more traders and manufacturers will be at the mercy of Asian suppliers.
Experts have emphasised the need for improvement of cotton production through financial support for the Institute for Agricultural Research and have recommended financial support for the National Biotechnology Development Agency to enable it to deploy biotechnologically improved cotton at confined fields at trial levels.
After over two and a half years of talks, a free trade deal agreement was recently inked between the European Union (EU) and Vietnam. A first of its kind agreement between the EU and a developing country, this deal will remove almost all tariffs on goods traded between the two economies. Vietnam will also do away with almost all of its export duties.
The FTA tackles other trade-related issues such as public procurement, regulatory issues, competition, and Geographical Indications, apart from eliminating tariffs and non-tariff barriers. Moreover, it also has an in-depth chapter on trade and sustainable development, which covers labour and environmental matters, with special attention to corporate social responsibility and fair and ethical trading schemes.
In 2014, imports into the EU from Vietnam were S$24 billion totally. Key goods included: footwear, textiles and clothing, among others. The state-run Vietnam National Textile and Garment Group, Vinatex, suggests that the value of Vietnam’s textile and garment exports reached $12.18 billion in the first six months of this year, . a rise of 10.3 per cent on the same period a year ago.
The deal between the EU and Vietnam is welcomed by the Federation of the European Sporting Goods Industry (FESI). FESI also notes that the FTA would ensure better market access for high quality European sports equipment and it would also support the sourcing of sporting goods in Vietnam. Vietnam is one of the top sourcing countries for sporting goods globally. Alberto Bichi, FESI secretary general says employment will be created for thousands with FTA between the EU and Vietnam.
Colorant is in talks with Chinese producer of textile dyes, which had supplied flourine-based reactive dyes technology to Colorant, to also source intermediates. The two companies will together set up a joint venture in India to produce dyestuffs. Alongside, Colorant will also be supplying dyes to the global network of the Chinese company. Major global apparel brands like Levi’s, M&S and Decathlon, among other already source from Colorant and now the company expects to be on the list of approved suppliers to the fast fashion brand Zara.
Colorant, manufacturing reactive textile dyes was set up in 1999 by Subhash Bhargava. The company’s dyes are primarily meant for the cellulose and cotton textile sector and it offers the complete range meeting every need of the industry. Colorant is the first Indian manufacturer and only producer of flourine-based reactive dyes in India. It has four units in Ahmedabad. The company has an office in Tirupur and sales officials stationed in Vapi, Mumbai, Ludhiana, Delhi and Kolkata.
Colorant has an installed monthly production capacity of 500 tons. The company exports 20 per cent of its production to countries like Brazil, the Central American region, South Africa, Mauritius, Nigeria, Egypt, Iran, Turkey, Pakistan and Bangladesh, and also in small quantities to China. They are also vendors to state-owned National Handloom Development Corporation (NHDC).
Colorant is the recipient of several export awards and has won awards in the last eight years in a row in the SME category from the Gujarat Dyestuff Manufacturers Association (GDMA) and from the Dyestuff Manufacturers Association (India) for the last four years. It has also bagged two awards from Chemexcil, in the SME exports category.
www.colorantindia.com
The US has finally renewed the Generalised System of Preferences (GSP) for Indian exporters retrospectively from August 2013, enabling duty free entry of 3,500 products. Timely renewal of GSP is important for maintaining stable bilateral trade between the two countries and to avoid uncertainty in bidding for any new business.
This was the longest delay by the US in renewing GSP. The benefit had lapsed in July 2013. It has been extended till December 2017. The move is expected to benefit exporters of textile, engineering, gems and jewelry and chemical products, among others, as their biggest market is the US.
In GSP a wide range of industrial and agricultural products originating in certain developing countries are given preferential access to American markets. This is given in the form of reduced or zero rates of customs duties. It was introduced by the US in 1976.
The GSP program helps developing countries expand their economies by increasing exports to the US and it also aids US businesses by lowering the cost of imported goods that are used as inputs in value-added US production. Therefore it helps in keeping products made in America competitive for both domestic consumption as well as US exports.
J&D Wilkie, a Scottish technical textiles specialist is set to open a new ￡3 million factory in Jianxing near Shanghai to enable it to produce technical products. During a trade mission to China, Scotland’s First Minister Nicola Sturgeon, revealed the expansion plans. Wilkie began producing jute and flax in Scotland in 1868 and since it has established operations in China, production has doubled. The company produces a wide range of fabrics for commercial and industrial applications, including for the military.
The expansion in China, Wilkie says would safeguard 90 jobs in Scotland and the new factory there would house an integrated spinning and weaving unit on one site. He added that this move will further strengthen their position in Europe where the Scottish weaving unit has almost doubled since starting the yarn production in China.
A privately owned global technical textile manufacturing company with its head office based in Scotland, J&D Wilkie’s manufacturing sites are optimised so that there is flexibility to respond to their customers’ needs irrespective of their global geographic location. The company also benefits from a fully owned manufacturing site in China capable of producing ‘European quality at Chinese prices’.
Decades of irresponsible fabric sourcing by companies have caused deforestation, says Rainforest Action Network in its latest report titled ‘Lessons from the Incense Forest’. The study identifies top American apparel brands, dubbed the “Fashion Fifteen,” and lists Prada, LVMH, Tory Burch, Michael Kors, Vince, Guess, Velvet, L Brands, Forever 21, Under Armour, Footlocker, Abercrombie and Fitch, GAIAM, Beyond Yoga and Ralph LaurenPopular, many of them beloved and iconic, as the perpetrators of forest destruction. The pressure on these fashion companies to address these violations in their global supply chains is growing.
The recent global expansion of massive plantations for the production of pulp for use in fabrics has led to land grabbing from surrounding communities. Every year tens of millions of trees are turned into clothing through the use of forest fabrics like rayon and viscose. These forests have played a critical part in local community livelihoods for generations, and are now being seized and for forest fabrics.
Without strong policies from fashion companies, rainforest destruction and human rights abuses can become part of the clothing worn by millions of consumers around the world. Protest groups are urging brands to take action to ensure that real changes are made on the ground to prevent deforestation, human rights abuses and climate pollution from being woven into the fabrics consumers wear.
These group wants brands to use only forest-friendly fabrics in their collections and to identify negative manufacturing components and develop commitments to protecting forests and human rights.
