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Indorama Ventures registered a volume growth of 18 per cent in 2019. Core ebitda fell 20 per cent. Operating cash flow in 2019 increased by 33 per cent.
The company has undertaken several transformative initiatives that are expected to generate benefits starting in 2020 and targeted to lead to run rate cost savings by 2023. Key strategic priorities for the group are expansion in India; formation of a dedicated team to grow the PET recycling business; and a continued focus on working capital optimization coupled with an increased emphasis on leadership development.
Indorama Ventures is a chemical producer. It continues to build durable competitive advantages through its diversified portfolio, supported by a responsible approach to sustainable business, people and the environment, creating value for society and for customers. It has a global reach, with around 80 per cent of capital invested in Europe and America. The business model is resilient to events happening in any particular country or region. Indorama has strong growth engines. One is the combined PET segment, which includes its key feedstocks and recycling business. Another is the integrated oxides and derivatives segment. And there is the fibers segment, which serves the mobility, hygiene and lifestyle verticals.
The India International Textiles expo will be held in Mumbai from March 5 to 7, 2020. This three-day textile trade show will feature product categories including yarn, textiles, readymade garments, industrial textiles, cottons, blended textiles, silk, knitted textiles, suiting textiles, saris, and accessories. Trade visitors from the UK, US, Europe, Bangladesh, UAE, and China are expected. The event aims at giving Indian powerloom textile producers a platform from which to showcase their products and link up with international distributors.
The event is being organized by the Powerloom Development and Export Promotion Council, which is a non-profit working to promote India’s powerloom sector. It works to increase exports of fabrics and made-ups produced by powerloom manufacturers and also works on the industry’s trade practices and technology. The council gathers market information and gives information on the latest developments in the export front. It takes up various issues of the powerloom sector with the relevant authorities. It organizes buyer-seller meets at different locations in India for promotion of powerloom fabrics and made-ups and organizes training programs, workshops, seminars to educate entrepreneurs on various business related issues. The council has established a design studio at Erode for providing training and filling the skill gap in the industry.
Operating profits of polyester yarn manufacturers in India are set to rise next fiscal. Reason: a rise in operating margins, healthy demand for polyester, and higher blending in garments and other products.
The price of purified terephthalic acid (PTA) – a key raw material that accounts for more than half of the sales price of polyester yarn – is expected to be under pressure in the near term. Moreover, PTA capacities in Asia are set to rise 20 per cent over the next couple of years, which will keep prices in check. The removal of the anti-dumping duty will make India’s PTA imports cheaper, given more avenues for sourcing. Consequently, the input cost for polyester yarn manufacturers would be three percent to four per cent lower. Falling prices and adequate availability of PTA will, in turn, help polyester yarn manufacturers step up production and utilisation levels, too, given the healthy demand and better export competitiveness.
Given the high degree of competition, polyester yarn manufacturers will have to pass on a part of the cost savings to end consumers. However, their operating profits should get a 15 per cent to 20 per cent boost even if they retain half of it.
The European Union’s exports of fashion goods have increased 48.4 per cent compared to 2010. Holland’s exports of fashion goods in 2019 were 98 per cent more than in 2010. The country is also the logistic heart of fashion in Europe due to its strategic location since its radius of influence covers cities such as Paris, London, Berlin, Milan or Dusseldorf. Spain’s fashion sales abroad have grown by 90.3 per cent since 2010. Italy’s fashion exports in 2019 were 46.9 percent more than they were ten years ago and two per cent more than in 2018. France’s exports of fashion products in 2019 were 78.2 per cent higher than they were 10 years ago.
Eastern Europe has become one of the main supply hubs and one of the largest exporting giants in Europe. Poland and the Czech Republic have doubled their fashion exports in the last ten years. Between 2018 and 2019, Poland’s fashion exports increased 1.23 per cent. This increase is due to the modernization of industrial fabric of the country, which began ten years ago. The fashion and clothing industry plays an important role in the Czech market, being the fifth most important sector in the country.
"Comprising freight forwarders, courier companies, and other companies integrating and offering subcontracted logistics and transportation services, third party logistics (3PL) companies, help textile manufacturers and fashion retailers to grow their businesses and boost profits. These companies typically provide warehousing and transportation services that can be scaled and customised as per customer requirements."
Comprising freight forwarders, courier companies, and other companies integrating and offering subcontracted logistics and transportation services, third party logistics (3PL) companies, help textile manufacturers and fashion retailers to grow their businesses and boost profits. These companies typically provide warehousing and transportation services that can be scaled and customised as per customer requirements.
A third party logistic provider helps manufacturers meet customer’s request for a particular kind of fabrics for garments. They also reduce delays and iron out logistical details by streamlining the movement of textiles between destinations. European fabric manufacturers hope to withstand growing competitive pressures by focusing on sustainable fabrics, including those with traceable origins. A 3PL can enable these companies to respond to global customer preferences instead of falling behind the curve.
Helping manufacturers provide season-specific garments
Besides catering to changing demands of customers, the fashion industry must provide shoppers with season-
specific garments. To accurately predict their demands, many manufacturers utilise artificial intelligence (AI) to detect fabric defects or predict customer demand during a given period.
At times, smaller manufacturers find it difficult to maintain flexibility in their operations; especially when they need to ramp up their processes in a relative short. By providing services that would otherwise be out of reach of these manufacturers, 3PL companies fulfill their need for three primary services of transportation, warehousing and information technology.
Enabling market expansion
At times, textiles originate from countries located far away from those that sell apparels made with these fabrics. A 3PL provider can bolster the chances of success of manufacturers and retailers by moving into new, international markets. A 3PL provider can help manufacturers and retailers source materials faster or at cheaper rates. 3PL can also help a retailer meet latest demand by launching operations in a new marketplace and serving customers there.
Changing apparel procurement for store shelves
Many customers have faced the disappointment of wanting to purchase a particular garment and discovering it out of stock. To avoid this scenario, fashion retailers work with 3PLs to procure goods faster. They also plan to outsource most of their e-commerce order fulfillment to 3PL businesses who can ship their products directly to the consumers who order them, reducing delays and meeting expectations.
Though fashion customers are happy with what their purchases, whether in stores or through a website, factors like fit, feel and durability can ruin their happiness. To address these requirements, 3PL organisation can smoothen the process of returns.
The fashion industry moves at a lightning speed. In order to remain profitable, textile manufacturers and garment retailers need to match this rapid pace. Specialised resources provided by 3PL companies can help these manufacturers and retailers to accomplish this.
Tirupur garment exporters are investing in sustainability. For example, Tirupur-based Sulochana Cotton Spinning Mills makes garments made out of recycled PET bottles. Twelve recycled PET bottles are used to make a single T-shirt. The waste PET bottles are processed into fiber, which at the end is converted to yarn that is used for garmenting and knitting. The company is in the process of adopting a technology that gives an assurance to its overseas buyers about the yarn, whether it is recycled or not. It also lets them trace the raw materials and process involved in manufacturing. A process will help in tracing the entire supply chain, right from collecting bottles to recycled fabric yarn, through blockchain. Syndicate Impex has launched knitwear collections made from fiber using recycled PET bottles and textile fabrics. Syndicate plans to buy back the garments it has sold and recycle them and so ensure the T-shirts do not go to the landfills.
Apart from individual companies that are taking greener initiatives, Tirupur as a cluster has invested in 1,600 MW of wind and solar energy, recycling waste water in processing units, and has zero liquid discharge systems.
As shoppers around the world demand sustainable product ranges, suppliers are seeking out possible ways to meet the demands of buyers.
Spanish fashion companies are facing the impact of the Coronavirus (COVID 19). Companies are losing money because of the outbreak. Retailers are worried that new collections may be delayed by months. Spanish brands that have suppliers and factories in China have started to implement contingency plans aimed to prevent damage to their production. In particular, orders from China are beginning to shift to countries such as Myanmar and Thailand. With this, companies hope to save their new garments for the time being. The spring/summer collection is already in stores. There is no risk of shortage, at least for now, as their fears are centered on the autumn and winter collections, for which raw materials – buttons, zippers or threads – should already be in the process of being manufactured.
Fashion group Tendam has more than 100 suppliers in China alone; around 30 per cent of the garments bought by the group’s brands are produced in Asian countries. Having a production network in more than 30 countries, Tendam has begun to divert manufacturing away from China and may shift from sea to air transport if the accumulated delays are large and lengthy. Inditex has seven stores in the Wuhan region and part of its production in China.
Ludhiana’s apparel manufacturing industry is tilting toward technology and investing in automation, be it knitting or stitching. Manufacturers are aiming to increase productivity, efficiency and reduce labour dependency. Flat knitting (multi-gauge) machines that start from five or six gauges and go up to 14 gauges have the option of jointless knitting. This helps users save money and produce more value-added products. Fleece jacquard machines help in this regard. Brother’s DigiFlex series of machines has received a very good response in Ludhiana. These help monitor workers’ efficiency, factory efficiency, no matter where they are. Sewing machine leader Jack is also getting a good response in Ludhiana for its new and different machines. The technology leader recently launched its automatic placket-making machine for tees which can make 1,200 pieces a day in eight hours and help reduce dependence on labor. The company has also introduced automatic button feeders and pattern sewing machines.
Ludhiana accounts for over 90 per cent of the total winter wear production in the country. Knitwear constitutes around 50 per cent of the domestic apparel market in India. There are around 12,000 units in Ludhiana, a majority of them in the micro, small and medium category who are engaged in the production of winter wear. The winter wear category comprises sweaters, hoodies, sweat shirts, jackets, shawls, cardigans and trousers.
Lee is testing sustainable production methods together with a series of new technologies and materials, mainly circling around denim production.
Indigood Denim is a foam dyeing technique that does not use water and features 89 per cent less chemicals and 65 per cent less energy than traditional dyeing. At Lee, Indigood is featured in the spring preview ’20 range on two different washes on the slim tapered Luke fit men’s jean. Back to Nature features pieces that are meant to be completely biodegradable. They are made using entirely compostable linen-cotton yarns, and no rivets, so that when the garment is no longer needed, the buttons can be unscrewed for re-use and the rest is just thrown into the compost, where it will biodegrade. Sustainable Selvage is an ongoing collaboration with Italian denim mill Candiani. The result is a series of jeans created using less energy, water and chemicals. Sustainable production and finishing processes include the use of Kitotex dyeing, derived from the food waste industry. Sustainable laundry treatments include lasering that does not use chemicals and E-Flow which uses less chemicals and water. PP spray (used for creating worn effects) has been replaced with an eco-friendly bleaching additive.
Lee is benchmarking its sustainability initiatives’ impacts on environmental and social issues since this will help the brand set targets over time.
Invista is building a plant in China which will produce up to 4,00,000 tons of adiponitrile (ADN) annually. The plant will integrate with Invista’s existing polymer facilities to directly supply domestic customers with the key building ingredients to produce nylon 6.6 and other high-value products in China and throughout the Asia Pacific region. The plant will incorporate Invista’s latest ADN technology that improves product yields, reduces energy consumption, lowers greenhouse gas emissions, enhances process stability and slashes capital intensity compared to existing technologies. This plant is expected to help the company meet the growing demand for nylon 6.6 chemical intermediates in China and the Asia Pacific region. Invista plans to begin construction on the project this year, eyeing a production start date in 2022.
China is expected to be the world’s largest consumer of nylon 6.6 in the next few years. Invista, based in the United States, is one of the world’s largest integrated producers of polymers, fibers, fabrics, resins, chemical intermediates, and specialty chemicals for commercial, residential, automotive, and industrial customers. The company offers premium fibers and fabrics for apparel, swimwear, active wear, denim, sweaters, and leg wear; carpet fiber for commercial carpet, as well as carpet and rugs for home; automotive flooring, airbags, and upholstery products; and products for applications, such as daypacks, outdoor gear, luggage, and outdoor wear.
