FW
Pakistan wants to increase its textile exports in the next five years. Special incentives would be given to small and medium enterprises. New schemes and initiatives will be launched to increase the use of information technology. The plan envisages making textile sector compliant with labor and environment rules and conventions domestically and internationally. Textile units will be encouraged to use modern management practices for improving efficiency and reducing waste. The government will also provide vocational training to 12,000 workers.
Pakistan is the eighth largest exporter of textile products in Asia and the fourth largest producer of cotton with the third largest spinning capacity in Asia after China and India. Organisational rules will be amended to extend incentives to employees on the basis of performance and output. The proposed measures include formulation of a new policy as well as restructuring of institutions dealing with cotton to promote availability of better cotton for the value-added sector in the textile value chain.
Cotton standardisation and clean cotton with reduced contamination levels will be facilitated through upgradation of ginning machinery. A comprehensive training and capacity building program would be developed to establish a system in the private sector for grading and classifying cotton, ensuring that proper premiums are paid on cotton.
Myanmar is gaining reputation as a viable sourcing country, and has taken steps like establishing a minimum wage, but hurdles remain. The new nationwide minimum wage was imposed in June. But garment factory owners have been fighting the increase saying it would cripple the sector and some facilities would face closure. Factory owners are seeking lower wage increase.
The minimum wage level, even if it’s imposed, has to be done uniformly across all industries. If garment industry wage levels are lower than other industry levels, there may be problems in attracting and retaining skilled labor force. There is a need for freedom of association, which should lead to dialogue between employer and worker representatives to get issues settled constructively and will allow for the right to organize and collective bargaining to continue.
When violence is used by public or private sector security forces to curtail workers’ peaceful protests, this is likely to be more of a deterrent to companies considering sourcing from Myanmar than the strikes themselves, and will have a significant negative impact on Myanmar’s reputation.
If worker representatives are detained or dismissed for striking, that doesn’t bode well for Myanmar’s reputation either—and investors will take note.
British men's sportswear label Beb Sherma, is officially sold to US brand, Marquee Brands for £40.8 million (€58.52 million). This was after the label’s parent company, Oxford Industries made an announcement that they were looking for a potential buyer. Oxford’s chairman and CEO Thomas C Chubb III made a comment about Ben Sherman’s efforts, their dedication and enthusiasm appreciating the label. He further stated that they were looking forward to working with Marquee Brands and believed that this association will benefit both companies.
Established in 1963, Ben Sherman, has been owned by Oxford Industries for 10 years. Last year, the label generated $77.5 million in sales and a loss from operations of $10.8 million. In 2013, the sales were 67.2 million and loss $13.1 million. The brand shows an improvement in the 2014 sales.
A brand acquisition, licensing and development company, Marquee Brands, operates together with Neuberger Berman Private Equity. It identifies brands in various consumer product segments to expand their reach across retails channels, product category and geography. At present, Marquee Brands owns the Italian footwear label, Bruno Magli they acquired in early 2015.
Vietnam’s textile and garment export turnover has reached $12 billion this year, representing a modest increase of 9 per cent compared to the same period last year. The current figure is a three-year low, and much lower than the 19 per cent growth rate last year.
However, according to a Vinatas report, the number of foreign invested garment & textile factories has been increasing dramatically as foreign investors have been flocking to Vietnam to take full advantage of the free trade agreements (FTAs) of which Vietnam is a member. The Foreign Investment Agency (FIA) has confirmed that most foreign direct investment (FDI) projects are in the textile & garment sector.
But Vinatas points out that Vietnamese enterprises made up only 27.5 percent of the $12 billion worth of export turnover, while the remaining was created by foreign invested enterprises (FIEs). Vinatas has confirmed that the number of orders from Vietnam’s key markets such as the EU and Japan is on the decrease.
www.vinatas.com,vn
World leader in sustainable technologies development for garment finishing, Spanish Company Jeanologia has joined the ongoing Kingpins Show in New York from July 21 to 22. Jeanologia aims to encourage designers to take on the new creative revolution through technology. It provides solutions for the sportswear segment, through its collection iKnits, which blends technology with functionality, thus providing performance features to standard raw material through sustainable finishes.
Besides, new developments will be showcased to create a range of denim finishing, which uses the eFlow technology—low impact processes, which is, ‘one glass of water one garment’. This is the PURE ECO collection. To achieve vintage looks, natural effects and 3D, just one glass of water is needed.
The new developments both in knits and denims that Jeanologia wishes to showcase are because of a combination of the tools Light Ripper and Light Scrapper, exclusive to laser machinery from Jeanologia.
Roberto Muñoz Americas, Division Director says that they are making beautiful and authentic products in a sustainable and environmental cost saving manner. He feels that what matters is also the way a product is made and produced.
The brand also wishes to encourage American designers to use technology to achieve new effects and finishing in their collections via sustainable and efficient processes without compromising on the final look.
Certain knitted fabrics have been excluded for concession under the Merchandise Exports from India Scheme. Most knitted fabrics including those with Lycra have been left out in the list of items covered for export benefits. Knitted fabric with Lycra are value added products that are used widely in garments.
Industry feels if any benefit is granted to fabrics then it should cover the entire range. Exporters too want knitted fabrics to be included. They want export sops to be given to value added products such as exports of cotton dyed and printed fabrics and made-ups to African countries.
These products, including khangas and khatangas, are used in traditional African dresses, and are predominantly manufactured by small and medium units in India. For the first time a decision has been taken to include exports of cotton fabrics – woven and knitted – to Bangladesh and Sri Lanka. The decision would play a major role in boosting fabric exports to both countries, strong garment manufacturing and India is known for fabrics.
The Merchandise Exports from India Scheme is an incentive for merchandise and services exports. Under this scheme, exports of notified goods to notified markets are freely transferable duty credit scrips on realised FOB value of exports in free foreign exchange at a specified rate.
France's development agency Agence Française de Développement (AFD) has proposed making Bangladesh’s readymade garment industry green while ensuring factory safety and standards of products. AFD is likely to provide financial support to readymade garment factories for improving their standards. Bangladesh is scrutinising AFD's proposal. If found feasible it will be approved.
The French development agency has also submitted a proposal to do pre-feasibility study for urban development and coastal town protection. Bangladesh’s readymade garment industry got massive attention from the international community after the Rana Plaza collapse in April 2013 that left more than 1100 workers dead.
Major buyers from the United States and Europe blamed Bangladeshi garment makers for poor safety standards at their factories. Two western coalitions, Accord, backed by European buyers, and Alliance, backed by US buyers, are working in Bangladesh’s garment sector on issues of fire and building safety and workers’ safety. AFD entered Bangladesh as a lender a few years back. It has so far invested in a couple of projects in infrastructure development in the country. In the meantime owners of garment factories are working to improve safety standards and compliance in their factories as per recommendations of buyers.
www.afd.fr/lang/en/home
Some 30 textile mill owners in Bangladesh have been given five to ten years to repay their debts. These mills have been struggling to make good business for sometime. Victims of the global economic recession, they failed to repay loans to banks and financial institutions.
The mills will get full waiver for uncharged interest and interest of suspense account. And the cost of the fund will be flexible. The interest which is yet to be charged or calculated will be waived in favor of customers. But no portion of the principal and costs incurred due to a case filed in court will be given waiver.
The country’s textile sector is presently under pressure due to a slump in yarn prices and low price of exported goods especially in the eurozone. Demand for goods has also decreased in the global market and it has affected production. Many textile mill owners are incurring losses due to the fall in price of goods. Frequent fluctuations of cotton price are affecting the industry. Amid commodity price cuts on the global market, and regular ups and downs in cotton prices, millers dither over buying huge volumes of cotton. This has hampered production.
Invista, co-sponsor of the Kingpins denim show to be held on July 21 and 22, in New York, will be showcasing the latest Lycra Beauty branded shaping fabrics from around the world. In addition, the company will feature the latest performance offerings with Coolmax and Thermolite fabrics, as well as new options for the boyfriend jean using lastingFIT technology by Lycra brand.
Jeans made with lastingFIT technology by Lycra provide a stylish and comfortable option for the latest boyfriend silhouettes without the bag and sag. Response to the Lycra Beauty branded platform has been excellent according to Jean Hegedus, Invista’s Global Business Director for denim. Hegedus says they have 200 certified Lycra Beauty branded denim fabrics and the first garments will appear at retail later this fall.
To provide further information about how Lycra Beauty fabrics work, Hegedus will be part of the ‘Denim Makes the Shape’ panel along with other panelists including Panos Sofianos of Tejidos Royo and Jack Matthews of ADM Denim. Both of these companies have developed a variety of high quality Lycra Beauty denim fabrics which will be on display at Kingpins.
www.kingpinsshow.com
Welspun India has reported a 55.42 per cent jump in its consolidated net profit for the first quarter of 2015-16. Home textiles firm Welspun India is part of the Welspun Group. The company had reported a net profit of Rs 104.97 crores in the corresponding period of the last fiscal. Its net sales during the quarter under review were up 19.63 per cent as compared to the same period last year.
Capital expenditure plan is as per schedule and Welspun plans to invest around Rs 1,100 crores over the next 12 to 15 months. This capex will entail modernisation, automation and capacity enhancement for towels and sheets as well as routine maintenance. The company’s ongoing initiatives with respect to its own brands as well as innovative products have resulted in another strong quarter of operational and financial performance.
In home textiles sector, Welspun is the largest integrated towel manufacturer in Asia, a leading supplier to 14 of the top 30 US retailers, and a global supplier, offering the entire range of products within the segment.
www.welspunindia.com/
