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Refunds of VAT and GST will benefit denim fabric maker Nandan Denim by Rs 20 crores annually. This subsidy benefit is likely to be recognised by the company from Q2. Nandan Denim reported a profit of Rs 5.23 crores for the three months ended June compared to Rs 16.31 crores in the same period a year ago. Net sales were Rs 359.62 crores during the three months ended June compared to sales of Rs 424.44 crores a year ago.
Power subsidy will be around Rs 4 crores to Rs 5 crores on an annual basis. And GST will be around 2.5 per cent of the sales made in Gujarat. Nandan Denim is India’s largest denim fabric manufacturer. From a year-on-year perspective, Nandan has completed capacity expansions at the denim fabric, shirting fabric, and yarn manufacturing units.
The company’s fabric manufacturing capacity is 110 million meters per annum. Going forward, emphasis will be laid on fashion denim fabrics to target better realizations compared to regular denim material. A combination of higher sales volumes and value added products is likely to fuel top-line growth in the coming fiscals. Denim fabric contributes 80 to 90 per cent to Nandan’s annual turnover.
The Sri Lankan Board of Investment (BOI) has approved setting up of six apparel factories in the Northern region. These factories will be set up with an investment of Rs 8 billion and provide employment to 7,917 workers. The six apparel plants include: Omega Line, Hirdaramani Fashion, Hirdaramani Clothing, Timex Garments, MAS Active and MAS Intimates.
Another 15 projects in different sectors are also operational and represent investments of Rs 16.3 billion and have employed about 837 workers in the Northern region. Two new projects of the BOI currently awaiting commercial operation, five projects are looking forward for implementation, two have been awaiting the signing of agreements while five are awaiting for approval.
Pure London will be held from February 10 to 12, 2019. With an international audience the three-day seasonal show will strive to help the industry navigate global issues in the fashion industry, including the storm that is Brexit, by providing a platform to answer the key questions many are too afraid to ask.
Visitors will continue to see over 700 women’s and menswear brands offering ready to wear and premium collections, footwear and accessories as well as the recently rebranded Gen Z section. Pure London will continue to evolve and build on the progress made towards creating a sustainable future for fashion. The show will feature a graffiti style pledge wall for visitors to interact with. A unified festival of fashion will be created across London, offering collaborative solutions to benefit visitors.
Pure London is UK's leading trade fashion buying event, representing women’s wear, menswear, footwear, accessories and young fashion. The show offers buyers from UK and international independents, multiples, department stores, etailers and mail order the opportunity to discover collections launching for the season ahead, attend catwalk shows and hear from their peers and other industry experts in valuable seminars and workshops. Pure London is an ITE Group event. ITE is one of the world’s leading organisers of international exhibitions and conferences.
Jinqing Cai has been appointed President of Kering Greater China. Her mission will be to consolidate Kering’s position in Greater China and strengthen the links between the group and its local partners. Cai will be based in Kering’s Shanghai office and will report to Jean-François Palus, Group Managing Director, Kering.
Starting her career in 1993 in New York as an associate in a strategic consulting company, Cai later moved to Hong Kong to work for private equity fund management companies, k1 Ventures and Lark International Entertainment. In 2002, she co-founded the PR firm New Alliance Consulting International in Beijing and managed the highly successful inaugural annual conference of Boao Forum for Asia.
In 2005, Cai became the founding partner of Brunswick Beijing, playing a central role in the PR firm’s high profile cross-border transactions. In 2012, she joined leading auction house Christie’s as the first Managing Director of Christie’s China. She was appointed President of Christie’s China in 2014 and then Chairman in 2016.
Cai has a bachelor’s degree from Wellesley College in Massachusetts and a Master’s in Public Affairs from Woodrow Wilson School of International and Public Affairs, Princeton University.
Sritex is an Indonesian textile company that exports military uniforms to 35 countries. Half of its garment sales are military uniforms, although it also supplies fashion brands such as H&M. While some Indonesian companies have been buffeted by a volatile local currency, Sritex has managed to shield its supply chain from currency risks.
Sritex is less exposed to currency risks because it produces its own raw materials in its home base for yarn spinning, weaving and garment finishing. Indonesia’s currency, the rupiah, is one of emerging Asia’s worst performing currencies this year, having lost nine per cent against the dollar and is trading at its lowest for 20 years, hurt by rising US interest rates and global trade tensions.
While currency depreciation should in theory benefit exporters, it is often not the case in Indonesia where an estimated 70 per cent of raw materials used by manufacturers have to be imported. Sritex has a RS&D center in Germany, which has helped it develop special fabrics for the German military, such as those that are able to offer protection from mosquitoes.
Sales at Sritex jumped 35.6 per cent in the first six months and net income rose nearly 70 per cent, which would support the company’s plan to invest in a new weaving factory next year.
Makers of worsted fabric in India are set to face a squeeze in margins this year as global wool prices have reached a new high. International wool prices have increased by up to 180 per cent in the last two years, but Indian worsted fabric makers are unable to pass it on to consumers. Indian consumers are not ready to pay for the price rise and so manufacturers are using more manmade fiber.
Leading makers of winter garments, such as Raymonds, Reid and Tailor, Indoworth India, Jayashsree Textiles, OCM and Reliance are now increasingly moving to polyester viscose from polyester wool to lessen the impact of high wool prices on their margins. Wool is categorised in terms of fiber diameter of between 14.5 microns to 32 microns, and prices are higher for lower micron wool. The price has increased by 70 per cent for the category of wool used by the knitwear industry.
There is a sharp gap in the demand for and supply of wool due to adverse climatic conditions in Australia and it has caused a major rise in wool prices in the last couple of years. India produces about 2.2 million meters of worsted fabric every month.
Porto will host next year's largest textile congress in the world, the International Textile Manufacturers Federation (ITMF), from October 20 to 22, 2019.The event will be organised by the Textile and Clothing Association of Portugal (ATP). It is expected to attract 300-350 participants comprising businessmen and managers of large sector companies.
An international forum for the world's textile industries, ITMF is dedicated to keeping the world-wide membership constantly informed through surveys, studies and publications, participating in the evolution of the industry's value chain and through the organisation of annual conferences as well as publishing considered opinions on future trends and international developments.
H&M has collaborated on a water strategy with WWF. The aim is to enable the company to become a leading water steward in the fashion industry. This integrated strategy goes beyond factory lines, taking into account the whole supply chain and also covering climate action and strategic dialogue to tackle broader sustainability challenges at an industry level, such as circular production processes and the use of sustainable materials.
Transforming the textile industry’s water management to reduce pollution is a critical part of WWF’s work to conserve freshwater resources. WWF’s global partnership with the H&M group has led the way by improving H&M group’s water management and encouraging other companies, NGOs and policymakers to collectively engage on water issues on a global level.
Clean freshwater is becoming a scarce resource. In the textile industry, water plays a critical role. Growing cotton, dyeing fabrics, creating washed-out looks — all have an impact on water resources. As a part of the strategy H&M will assess footprint and risk in its stores, warehouses and suppliers’ factories, improve the use of water and reduce pollution within its operations and suppliers’ factories and engage with public policymakers to manage water basins in a sustainable way.
The group feels its long-term success depends on access to water, the sustainable management of shared resources and a consideration for the needs of local communities.
The MSME Ministry has approved a proposal by the Khadi and Village Industries Commission (KVIC) to increase wages of artisans along with payment of government subsidy -- modified market development assistance (MMDA), by over 36 per cent, from Rs 5.50 per hank previously to Rs 7.50 per hank. Under the MMDA programme, 30 per cent of the prime cost is paid to the khadi institution as production subsidy. Out of this 30 per cent, 40 per cent goes to artisans as wage incentives and the remaining 60 per cent goes to the institutions.
The wage incentives are paid by KVIC directly to the accounts of the artisans through direct benefits transfer. As a result, if an artisan makes 20 hanks in a day – he will get Rs 150 per day as wage at the rate of Rs 7.50 per hank, plus incentives like MMDA, which would be approximately 35 per cent on Rs 150, that is Rs 52. Wage enhancement will draw youth towards spinning as a profession. It will also attract new and younger artisans to khadi – who were earlier skeptical about their income comparing it to the wages given to the daily wagers under MNREGA.
Brazil could become the world’s second largest cotton exporter. The country is expected to export 1.12 million tons of cotton lint in the 2018-19 harvest, which would place it second to only the United States. The US-China trade war is set to directly benefit Brazilian cotton growers, with Chinese cotton processors indicating they would buy any additional supply of cotton that Brazilian farmers can produce.
China slapped a 25 per cent tariff on US cotton imports, among a raft of duties that took effect in July in response to tariffs announced by the US. Brazil’s overall production is expected to rise to 2.3 million tons of cotton lint in 2018-19 from two million tons the prior season.
Chinese demand will be driving growth in planted areas, with a record 1.4 million hectares of cotton expected next year, and two million hectares by 2022. Right now India is the second largest cotton exporter and Brazil is the third. Brazil has a wealth of arable land, plentiful rainfall, a large group of professional growers using the most advanced technologies, and a strong network of cotton industry associations.
Despite its many advantages, Brazil does have several significant obstacles to overcome before it can take its cotton production to the next level. Foremost on that list are logistics and transportation. Brazil is a huge country—larger than the continental United States—but its road and rail systems are either nonexistent or underdeveloped.
