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The Confederation of Indian Textile Industry (CITI) has joined hands with the Fair Wear Foundation to prepare Indian textile exporters for the European Union's upcoming Corporate Sustainability Due Diligence Directive (CSDDD).
Enacted in May 2024, the CSDDD requires European companies to enforce human rights and environmental due diligence throughout their global supply chains. This directive aims to create a unified legal framework within the EU, reducing the multiplicity of reports, and fostering legal certainty.
CITI's Immediate Past Chairman, T Rajkumar, emphasized the directive's potential to transform the Indian textile sector, enabling it to meet global standards and engage more effectively with stakeholders. He highlighted the opportunity for Indian manufacturers to adopt HRDD practices, which would enhance their negotiation leverage and risk management.
As part of this initiative, CITI and Fair Wear Foundation organized a Capacity Building Workshop titled "Sustainable Practices: Navigating Social and Environmental Compliances" in Coimbatore on July 26, 2024. The workshop, held in association with the Southern India Mills Association (SIMA), featured insights from the Fair Wear Foundation and the Regulatory Representatives & Managers Association (RRMA).
Key sessions covered the implications of the CSDDD for brands, due diligence obligations, environmental responsibilities, and the climate change combat plan. Participants also learned about global chemical compliance regulations and sustainable practices in the textile value chain. Emphasis was placed on certifications like Oeko-Tex, ZDHC, GOTS, Blue Sign, Cradle to Cradle, and Eco Label.
SIMA Chairman, SK Sundararaman, announced the formation of a “Sustainability Cell” to assist members in complying with social and environmental mandates. SIMA also introduced guidelines for women's employment in the textile industry and established partnerships with TUV Rheinland and BSI for compliance audits and certification.
A team at The Hong Kong Polytechnic University, led by DahuaShou, has developed innovative thermally-insulated and breathable soft robotic clothing that adapts to changing temperatures, enhancing worker safety in extreme heat. Their research, published in Advanced Science, addresses the urgent need for protective clothing that offers both thermal insulation and comfort in high-temperature environments, such as those faced by firefighters and construction workers.
Traditional thermal protective gear has limitations, often leading to overheating and discomfort in moderate conditions. Shou’s team drew inspiration from pigeons’ natural ability to regulate temperature by fluffing their feathers. They developed clothing with soft robotic textiles that use thermo-stimulated actuators.
These actuators, embedded in the fabric, respond to rising temperatures by expanding, which increases the material’s thermal resistance. This innovation can keep the inner surface up to 10°C cooler than conventional heat-resistant clothing, even when the outer surface reaches 120°C.
Made from thermoplastic polyurethane, the clothing is lightweight, skin-friendly, and durable, offering superior breathability without relying on energy-consuming cooling systems. It also withstands rigorous washing tests, making it suitable for a wide range of applications, including activewear, healthcare apparel, and construction insulation.
Shou sees vast potential for this technology in various fields, from winter jackets to sustainable building insulation, contributing to energy-saving efforts. Supported by the Innovation and Technology Commission and the Hong Kong Research Institute of Textiles and Apparel, the team is also exploring applications for low-temperature environments, ensuring thermal comfort across diverse conditions.
Revising its global cotton production forecast for 2024-25, the United States Department of Agriculture (USDA) has lowered it by 2.6 million bales to 117.64 million bales, shows the August 2024 World Agricultural Supply and Demand Estimates (WASDE) report.
The report also demonstrates a reduction in the global end-of-period inventory estimate to 77.61 million bales from 82.63 million bales in the previous month. Additionally, global consumption has been adjusted downward by nearly 1 million bales, largely due to decreased demand in China.
For US cotton, the USDA has slashed its 2024-25 production forecast by 1.9 million bales, bringing the total to 15.11 million bales. The yield forecast has been slightly reduced to 840 pounds per acre, compared to 844 pounds per acre previously. As a result, the ending inventory forecast for 2024-25 now stands at 4.5 million bales, down from the earlier estimate of 5.3 million bales.
The report also highlights a reduction in the all-cotton planted area by approximately 500,000 acreas per the data from the Farm Service Agency. The abandonment rate is now estimated at 23 percent, an increase of 6 percent from the previous month. Consequently, the estimated harvested area has been revised to 8.6 million acre, about 11 percent lower than the July WASDE forecast.
The all-cotton yield estimate of 840 pounds per acre is slightly below last month's figure. Exports are projected to decrease by 1 million bales due to reduced global trade and a smaller crop. Ending stocks are down by approximately 800,000 bales to 4.5 million, or 32 percent of use, primarily because of the reduced crop size.
Coats Digital’s FastReactFabric solution has been honored with two major accolades at The 2024 SaaS Awards: the Most Agile/Responsive SaaS Solution of the Year and Best SaaS Product for CSR, Sustainability & ESG. Recognized for its innovative features and significant impact on the global fashion supply chain, FastReactFabric is celebrated for driving efficiency, sustainability, and transparency across the industry.
The SaaS Awards, a long-standing program with 56 categories, acknowledges top innovations in software-as-a-service solutions globally. Entries spanned organizations of all sizes from North America, Europe, and APAC.
KunalKapur, Managing Director of Coats Digital, emphasized that winning these prestigious awards highlights the dedication of their global teams in revolutionizing the fashion industry. He noted that FastReactFabric's contribution to enhancing supply chain efficiency and sustainability reflects the company's commitment to advancing SaaS technology.
James Williams, CEO of The Cloud Awards, praised Coats Digital for its unwavering commitment to innovation, noting the high caliber of this year’s finalists. He commended Coats Digital for standing out in a competitive field and driving the industry forward.
Maneet Bansal praised FastReactFabric by Coats Digital for its innovation in the fashion industry, noting its seamless integration of technology to improve fabric efficiency and sustainability. He called it a game-changer for sustainable fashion.
Annabelle Whittall highlighted FastReactFabric’s pivotal role in the digital transformation of the fashion industry, commending its ability to provide real-time data insights and support over 3,000 factories worldwide. She recognized its significant impact on efficiency, transparency, and sustainable practices.
Adrian Elliot, Divisional CEO of Apparel at Coats Group, emphasized the significance of these awards in affirming Coats Digital's position as a leader in sustainable technology for the fashion supply chain.
The Hong Kong Research Institute of Textiles and Apparel (HKRITA) has collaborated with the H&M Foundation to recycle blended textiles into high-quality fabrics and yarns.
Focusing on denim, HKRITA is launching two pioneering projects aimed at recycling indigo-dyed fabrics. The first project introduces an AI-driven mechanical recycling system that extracts reusable indigo-dyed warp yarns from denim without the use of chemicals or water.
This groundbreaking method addresses the challenges of recycling blended denim fabrics, which often suffer from quality degradation and lower recycling efficiency. The system mechanically extracts warp yarns—typically made from higher-quality dyed cotton—while an AI system identifies fabric structures and measures warp yarn density and denim orientation, achieving over 90 percent efficiency.
By recycling indigo-dyed yarns, denim manufacturers can significantly reduce their dependence on virgin cotton, thereby conserving resources like water and agricultural inputs. The extracted yarns are of high enough quality to be reused without additional dyeing, lowering both operational costs and environmental impact. This innovative project earned a gold medal at the International Exhibition of Inventions in Geneva.
HKRITA’s second project tackles denim wastewater pollution by using a biodegradable mechanism to remove indigo dye from wastewater. This method employs sunlight and macroalgae species such as Cladophora and Chaetomorpha, which metabolise and break down the dye, effectively decoloring the wastewater. The algae-based system can be integrated into denim factory operations, consuming carbon dioxide waste and providing an eco-friendly, energy-efficient solution to wastewater treatment.
Both projects have garnered interest from denim manufacturers in China and Southeast Asia. However, the main challenge lies in scaling these innovations to industrial levels, particularly in terms of engineering design for light penetration, water circulation, and macroalgae containment. Committed to overcoming these hurdles, HKRITA aims to integrate these new technologies into manufacturing processes to drive sustainable innovation.
The global fashion and apparel industry is experiencing a notable shift as brands reconsider their heavy reliance on China. Due to geopolitical tensions, increasing labor costs, and disruptions from the pandemic, many are now turning their attention to India. With its large and growing middle class and evolving fashion appetite, India is emerging as a key market for international brands.
Comparative Landscape: China vs. India
A comparison of critical market metrics highlights the differences and opportunities in these two influential regions:
Table: China vs India a comparison
|
Market Feature |
China |
India |
|
Population (2023) |
1.426 billion |
1.429 billion |
|
GDP (Nominal, $ trillion, 2023) |
19.37 |
3.75 |
|
Apparel Market Size ($billion, 2023) |
323.5 |
80.5 |
|
Projected Apparel Market Growth (CAGR, 2023-2028) |
5.70% |
9.10% |
|
Internet Penetration (% of population, 2023) |
75.40% |
64% |
|
Smartphone Users (% of population, 2023) |
70.30% |
53.20% |
Source: Statista, World Bank, Euromonitor International
India’s growing edge
Demographic advantage
India’s youthful and expanding middle class offers a significant market for fashion brands. The country’s increasing number of young consumers and rising disposable incomes present substantial growth opportunities.
E-commerce and social media growth
The rapid expansion of e-commerce and social media in India provides new ways for brands to connect with consumers. With higher internet and smartphone penetration, digital platforms are becoming crucial for engaging with India’s tech-savvy population.
Cultural adaptation
Global brands are also focusing on adapting to India’s unique cultural tastes. Customizing offerings to align with local preferences can greatly enhance brand acceptance and customer loyalty.
Brands making the change
H&M
Swedish fast-fashion leader H&M is accelerating its growth in India by opening new stores and boosting its e-commerce capabilities. H&M sees India’s youthful population and market potential as key drivers for its investment strategy. "We are committed to offering Indian customers the latest fashion trends at affordable prices," says H&M India Country Manager JanneEinola.
Inditex (Zara)
Inditex, the parent company of Zara, views India as a pivotal market and is expanding both its physical and online retail presence. The company is focusing on meeting the rising demand for fashion with enhanced operational capabilities.
Uniqlo
Japanese retailer Uniqlo, which entered India in 2019, continues to grow its presence. The brand’s LifeWear concept, emphasizing high-quality, simple clothing, is tailored to appeal to the Indian market. "India is a very important market for us," says Uniqlo India CEO Tomohiko Sei. Adidas
German sportswear brand Adidas is increasing its manufacturing activities in India to reduce dependence on China. The company sees India as a dual opportunity for both sourcing and consumer markets.
Levi’s
Denim icon Levi’s is deepening its engagement with Indian consumers through tailored marketing and product offerings, recognizing India’s potential for premium denim.
Luxury brands
Luxury brands are also exploring opportunities in India. For instance, Louis Vuitton recently opened its first standalone store in Mumbai, reflecting the growing demand for high-end, exclusive products among Indian consumers.
Challenges and prospects
Despite its promise, India presents certain challenges:
• Fragmented retail sector: The dominance of small, independent stores can complicate market penetration for global brands.
• Infrastructure issues: Logistics and supply chain inefficiencies may result in delays and higher costs.
• Regulatory complexity: Navigating India’s regulatory landscape can be intricate and time-consuming.
While China remains a crucial market for global fashion brands, India is increasingly being seen as a viable alternative or complementary market. With its expanding consumer base, competitive manufacturing environment, and supportive government policies, India presents a compelling opportunity for international brands. The trend toward exploring and expanding in India is likely to continue, reflecting the country's growing significance in the global fashion landscape.
A leading machine and plant manufacturer based in Remscheid, OerlikonBarmag notes a growing demand for high quality technical textiles from India There’s a significant rise in inquiries from Indian customers seeking spinning systems for industrial yarns, saysDr Wolfgang Ernst, Head –Sales, Manmade Fibers Solutions Unit, Oerlikon. He notes a particularly strong interest from companies involved in downstream processes, who are now looking to integrate backward into yarn manufacturing. This shift is largely driven by the stricter regulations implemented by the Bureau of Indian Standards, he adds.
Previously, India primarily imported industrial yarns from China. However, with the new government regulations ensuring higher quality standards, it makes strategic sense for Indian textile producers to start manufacturing yarn domestically. OerlikonBarmag’s industrial yarn technology and their flexible spinning concepts support the production of a wide variety of yarn products for different applications. Their portfolio includes processes for producing both polyamide and polyester yarns, designed to meet the specific physical requirements needed for a diverse range of end uses.
As a leading supplier of industrial yarn systems, OerlikonBarmagalso offers customised solutions to its clients. Their system concept for High Tenacity (HT) yarns is particularly valued for its unique properties in the market, ensuring the production of high-quality yarns crucial for products like seat belts.
Increasingly seen as a future growth market in India, the technical textiles sector has been growing at an average rate of 12 per cent since 2013, and now represents about 13 per cent of the entire Indian textile and clothing market, according to the government organisation Invest India. The market volume has nearly doubled in the past decade. Traditionally, India’s industrial yarn production has relied heavily on polyamide—a market in which OerlikonBarmag has established a strong foothold.
The demand for industrial polyester yarns in India is also on the rise, fueled by the construction boom and the increasing use of geotextiles and industrial textiles in various infrastructure projects, as well as in agriculture and aquaculture. This growing demand is further supported by the Indian government’s 2021 industrial development program, which includes technical textiles as one of ten priority sectors, with a goal of reducing the country’s reliance on imports. Historically, India has imported a significant portion of the technical textiles and yarns it requires.
With the changing landscape and growing domestic demand for high-quality technical textiles, Indian producers are now more inclined to develop local manufacturing capabilities, potentially reducing reliance on imports and capturing a larger share of the domestic market.
Yarn mills in Bhilwara, Rajasthan, a key exporter of yarn and denim to Bangladesh, have come to a grinding halt due to the ongoing tensions in the country. The district annually exports goods worth approximately Rs 2,000 crore to Bangladesh, but this trade has now been severely impacted due to the crisis.
The monthly export of yarn and denim from Bhilwara to Bangladesh amounts toRs 150-200 crore.With this trade suddenly coming to a halt, demand for cloth produced in Bhilwara has dropped significantly. Although Bangladeshi buyers haven't cancelled their orders, local producers have ceased production due to uncertainties regarding payments, says RK Jain, General Secretary, Mewar Chamber of Commerce, the largest industrial organisation in Southern Rajasthan.
Home to 450 weaving units, 18 processing plants, 20 spinning mills, and 10 denim industries, Bhilwara collectively employs over 65,000 people directly and around 150,000 workers indirectly. The current crisis poses a serious threat to the livelihoods of these workers, as production has stopped and demand has plummeted.
One of the largest globally, Bangladesh's textile industry exports textiles to various countries, including Europe and the US. Amid the crisis, some entrepreneurs believe that if India can capture even 10 percent of Bangladesh's textile orders, it could provide a significant boost to its own textile sector.
Experts warn that if the crisis in Bangladesh continues, India may need to explore alternative markets for its exports. While the immediate impact on Bhilwara's textile units is severe, there is potential for long-term gains if India can seize this opportunity and make inroads into the markets typically served by Bangladesh.
Leading Japanese clothing brand, United Arrows registered a 10.4 per cent Y-o-Y rise in sales to ¥35.495 billion (approximately $240.7 million) during Q1, FY25.
The company's operating profit increased by 10.6 per cent Y-o-Y to ¥2.768 billionduringthe quarter from ¥2.502 billion in Q1 FY24. Ordinary profit also grew by 8.4 per centY-o-Y to ¥2.999 billion compared to ¥2.766 billion in the same quarter of the previous year.
Despite these gains, the company’s net income declined slightly by 2.0 percent Y-o-Y to ¥1.763 billion from ¥1.798 billion in Q1 FY24. United Arrow’s net income per share for the quarter rose to 63.90, compared to ¥63.48 in the same period last year.
United Arrows is a prominent Japanese fashion retailer known for its high-quality, stylish apparel and accessories. Established in 1989, the company has grown to become a significant player in the fashion industry, with a strong presence both in Japan and internationally.
A garment manufacturer based in Kenya’s Export Processing Zone, Royal Apparel EPZ (RAL), plans to expand its operations by constructing a new factory with a $15 million (Sh1.94 billion) loan from the International Finance Corporation (IFC).
The IFC loan will support the acquisition of new equipment and the establishment of additional sewing lines, significantly enhancing RAL’s production capacity. Additionally, the funds will be used to construct a three-kilowatt-hour (kWh) rooftop solar power plant to reduce the company's energy costs, and a textile wastewater effluent treatment plant with a capacity of 230 cubic meters per day.Pending approval by the IFC board, the loan will be complemented by $5 million (Sh645 million) in equity provided by RAL to expand its operations.
The expanded facility is expected to create 3,700 new formal manufacturing jobs, alongside numerous indirect employment opportunities. The project would primarily benefit people from underserved, low-income communities with limited education and skills, many of whom have no formal employment history. Beyond job creation, the facility will also focus on improving employees’ technical and soft skills through various training programs.
Founded in 2021 and fully owned by Kenyan businessman OmprakashShukla, who has 32 years of experience in the textiles and apparel sector, RAL produces woven pants, knit tops, high-end hospital scrubs, and undergarments for global apparel brands such as Dickies, Michael Kors, The Children’s Place, and Walmart. RAL is part of the RAL Group, which includes its sister companies, Royal Garment Industries EPZ and Royal Clothing EPZ, and operates four facilities within the EPZ.
According to the IFC, the new factory will improve the group's productivity and competitiveness in the apparel industry through optimisation of sewing line staffing, automation of specific tasks, and the integration of real-time data analytics.
