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The Q2, FY25 revenues of Vardhman Textiles rose by 4.38 per cent Y-o-Y while its profit increased by 46.57 per cent Y-o-Y. On a Q-o-Q basis, the company noted an 8.4 per cent Q-o-Q rise in revenue while its profit declined by 17.47 per cent Q-o-Q.
The company’s Selling, General, and Administrative (SG&A) expenses increased by 3.55 per cent Q-o-Q and 11.17 per cent YoY, indicating Vardhman’s continued investment in operational capabilities and customer engagement initiatives. Its operating income declined by 14.15 per cent Q-o-Q but increased by 111.99 per cent Y-o-Y increase, highlighting the company's effective long-term strategies to boost profitability.
The company’s Earnings per Share (EPS) grew by 46.61 per cent Y-o-Y to Rs6.92 in Q2, FY25, signaling a strong trajectory of earnings growth and operational efficiency.
The Q2, FY25 net profit of leading textile player, Mafatlal Industries declined to Rs 20 crore ($2.4 million) as against Rs 21 crore profit registered in the corresponding quarter last year.
The company’s revenue for the quarter rose by 223 per cent to Rs 996 crore, as against Rs 309 crore in the corresponding quarter of the previous fiscal year.
With an order book of around Rs 1,200 crore, Mafatlal Industries currently supplies products to various clients in the textile and consumer durable segment from the governments of Maharashtra, Jharkhand and Tripura.
MB Raghunath, CEO, says, the company recorded a topline of Rs 996 crore during this quarter and Rs 1,447 crore in the first half of the year. It continues to explore opportunities within its supply chain network to broaden its horizons. In line with this strategy, it successfully executed large orders in the consumer durable goods space during the quarter.
A flagship company of the Arvind Mafatlal Group, Mafatlal Industries offers a wide range of products that include suitings, shirts, fabrics, voiles, uniforms, etc.
Transforming the industry, Finnish textile innovation company, Spinnova has introduced a sustainable alternative to cotton: a 100 per cent recyclable cellulose fiber. This new technology not only helps significantly reduce the industry’s environmental impactbut also lowers its dependence on cotton by providing a groundbreaking option for eco-friendly textiles.
After nearly a decade of research, Spinnova has pioneered a unique method of producing textile fiber from wood pulp or waste pulp through a mechanical, chemical-free process. This avoids harmful chemicals or dissolution, making it suitable for large-scale production, explained Shahriare Mahmood, Chief Product and Sustainability Officer, Spinnova at a seminar in Dhaka. The company aims to price the fiber competitively and target the organic cotton market segment, he added, emphasising it could eventually substitute cotton, whose production has declined amid climate challenges even as demand rises.
Spinnova's innovation has attracted the interest of the denim industry, with Bangladeshi textile mill NZ Denim incorporating the fiber into its denim production over the past two and a half years. A challenging application, denim requires specific aesthetics, and the Spinnova fiber has proven to be a suitable replacement, retaining the look and feel of natural fibers like cotton and linen, Mahmood highlighted.
The fiber offers absorption properties similar to natural cellulosic fibers and can be blended with other materials. It also boasts higher thermal resistance than cotton, as verified by lab tests. Notably, global sportswear brand Adidas recently launched hoodies using Spinnova fibers, further validating its potential in high-performance textiles.
Lasse Holopainen, Chief Revenue Officer, Spinnova, noted, the minimum production capacity for a Spinnova fiber plant is at least 50 tons per day, which provides ample opportunity for its large-scale adoption. Given Bangladesh’s position as the second-largest apparel exporter, it is ideally positioned to adopt Spinnova’s technology as brands increase their focus on recycled and eco-friendly materials.
Organised by SAS Enterprise in collaboration with Spinnova, the Dhaka seminar focused on exploring sustainable textile solutions. Mahmood presented Spinnova’s fiber production process, which uses Kraft pulp and a dry spinning technique, requiring no water or chemicals.
In his welcome speech, Rajibul Huq Chowdhury, Managing Director, Aziz Group, emphasised the significance of sustainable practices for the textile sector’s future. A Matin Chowdhury, Managing Director, New Asia Group, underscored the need for innovative solutions to meet global demand sustainably.
During a panel discussion moderated by Ayub Nabi Khan, Pro-Vice-Chancellor, BGMEA University of Fashion & Technology, Saleudh Zaman Khan, Managing Director, NZ Tex Group, discussed the practical applications of sustainable fibers in Bangladesh, highlighting the prospects and challenges in the country's textile sector.
An iconic brand that dominated the 1980s and ‘90s, Esprit has gone into administration, and is officially filing for bankruptcy in the United States. The brand joins a list of retailers like Express, The Body Shop, Ted Baker, and Rue21, who have all shuttered locations amid financial struggles. As a part of its bankruptcy process, Esprit plans to close all its American subsidiaries including Esprit US Distributions, which managed its wholesale business, and Esprit US Retail Inc, which oversaw its retail and online operations.
Esprit attributes its decisionto ‘weak business and financial conditions’ and ‘unsatisfactory operating results,’ explaining that these subsidiaries were unlikely to bring in enough revenue to cover costs and meet debts.
Earlier this year, Espirit’s headquarters in Germany also filed for bankruptcy. The brand had already exited the US market back in 2012 due to profitability issues and declared bankruptcy in 2020. However, it emerged with a renewed hope after restructuring and even attempted a comeback in the US market in 2022, starting with a pop-up store in Los Angeles. The company announced plans to set up stores in LA, New York, Miami, Vancouver, and Toronto. However, now these plans are currently on an indefinite hold.
Recognised for its distinctive ‘E; logo, Espirit has been operating since the last six decades. While the brand’s American operations are closing down, its future in the international market remains uncertain.
Bangladesh, the world’s leading garment producer, has chosen to bypass India by exporting textiles via the Maldives, redirecting goods by sea and then shipping them by air to global clients like H&M and Zara. This move aims to enhance control over its supply chain and reduce delays, according to sources, impacting revenue previously generated by Indian airports and ports.
Industry experts consider this shift a strategic move, with Arun Kumar, president of India’s Association of Multimodal Transport Operators, noting that by bypassing Indian ports, Bangladesh gains increased reliability, which is essential for meeting strict international deadlines. Textile shipments are highly time-sensitive, and delays can result in rejected consignments, impacting Bangladesh’s ability to deliver seasonal apparel to Western brands.
This redirection comes amid efforts by the Indian government to address the economic impact of losing transit revenue. A portion of these exports is linked to Indian-owned facilities in Bangladesh, highlighting the deep trade ties between the two countries. However, Indian exporters appear unfazed, noting that local airports are already congested, and pointing out that India’s Apparel Export Promotion Council had previously sought limits on Bangladeshi goods transiting through Indian hubs.
In FY24, Bangladesh’s garment exports fell by 4.34 per cent to $44.47 billion. Despite the rerouting, India remains a crucial supplier of raw materials to Bangladesh, with cotton shipments reaching $1.86 billion in FY24 alone.
The textile industry is constantly evolving, and one of the most exciting new developments is 3D weaving. This innovative technology allows for the creation of seamless, three-dimensional garments and fabrics with intricate designs and complex shapes, directly on the loom.
Making a mark with innovations and applications
Unlike traditional weaving, which produces flat fabric, 3D weaving interlaces yarns in three perpendicular directions (x, y, and z) to create complex shapes and structures within the fabric itself. This opens up a world of possibilities for both aesthetics and functionality.
While both 3D weaving and seamless/whole garment knitting produce seamless garments, they differ in their underlying technology and end applications. 3D weaving interlaces yarns in three dimensions to create woven fabrics with complex structures and thicknesses. It’s ideal for tailored garments, technical textiles, and applications requiring high strength and durability. Seamless/whole garment knitting on the other hand uses knitting needles to create complete garments with minimal seams. It is well-suited for sportswear, knitwear, and applications prioritizing flexibility and comfort.
The advantages of 3D weaving are many. Most importantly, it minimizes fabric waste by creating near-net-shape products. The seamless garments that are made with this technology offer superior comfort and fit. 3D woven fabrics can provide improved breathability, moisture management, and support. Also it can help create complex shapes and intricate patterns that directly on the loom.
Innovations
Multi-layer fabrics: 3D weaving can produce fabrics with multiple layers, each with different properties or materials. This allows the creation of garments with integrated functions, such as moisture-wicking inner layers and abrasion-resistant outer layers.
Complex shapes: 3D weaving creates seamless, three-dimensional shapes directly on the loom, reducing the need for cutting and sewing. This is particularly useful for producing complex components like shoe uppers, contoured cushions, and even medical implants.
Integrated functionality: This technology can integrate functional elements directly into the fabric, such as sensors, actuators, and electronic components. This has applications in areas like smart textiles, wearable technology, and medical devices.
Applications
3D weaving is seeing numerous applications. In fashion, it leads to seamless garments, complex shapes, and intricate textures for high-end fashion and sportswear. In technical textiles it creates lightweight and strong composites for aerospace, automotive, and construction industries. In medical space, it helps in producing implants, prosthetics, and customized support structures with biocompatible materials. The technology is being used to produce sports equipment like helmets, protective gear, and footwear with enhanced performance and comfort.
Indeed, 3D weaving also has certain limitations. One major one is cost as 3D weaving technology is currently more expensive than traditional weaving. Production speed is another bane as 3D weaving can be slower than traditional methods, especially for complex designs. Limited material selection is also an issue as not all yarns are suitable for 3D weaving. What’s more designing 3D woven fabrics requires specialized skills and software.
While 3D weaving can create near-net-shape garments, it's not always a completely "yarn to apparel" process. Some finishing steps, such as minor trimming or the addition of closures, might be required. However, it significantly reduces the reliance on traditional cut-and-sew methods, streamlining production and minimizing waste. But the fact is, 3D weaving has the potential to reduce excess clothing in several ways. First, it helps in on-demand manufacturing which means producing garments only when needed that minimizes overstocking and waste. It also helps in customization and encourages consumers to invest in longer-lasting, personalized garments instead of disposable fashion. The seamless construction and high-performance materials increase garment lifespan. And 3D woven fabrics from recyclable materials can be more easily repurposed or broken down for reuse.
Startips, brands show the way
Many startups and brands are exploring the potential of 3D weaving. For example, Ministry of Supply, uses 3D knitting technology to create seamless, responsive apparel. Similarly, Unspun develops custom-fit jeans using 3D weaving technology. Twine Solutions offers innovative 3D weaving solutions for technical textiles and composites.
While still in its early stages of adoption, some apparel brands are incorporating 3D weaving into their production. Adidas for example utilized 3D knitting for its Future craft footwear line. And Nike employed Flyknit technology (a form of 3D knitting) in various footwear and apparel products.
Indeed 3D weaving is a promising technology with the potential to transform various industries, including fashion. While challenges remain in terms of cost and scalability, ongoing innovations and increasing adoption suggest a bright future in textile and apparel sector. As R&S continue, more creative and impactful applications of 3D weaving are expected to emerge in future.
A recent report by the United States International Trade Commission (USITC) highlights a significant shift in global apparel sourcing strategies, with India emerging a preferred destination for US buyers. This trend is driven by growing concerns about the garment sector in Bangladesh, coupled with India's increasing credibility as a reliable and stable sourcing partner.
India's rise
The USITC report highlights India's political stability as a crucial factor for US buyers, ensuring confidence in production and delivery timelines. "Brands are more willing to source high-value or fashion items from India compared to less politically stable countries," the report states. This sentiment is echoed by industry stakeholders in India who anticipate a rise in orders, despite the domestic market currently consuming 80 per cent of production.
Besides political stability what works for India is the vertical integration of the textiles sector. India's cotton garment sector benefits from a strong domestic supply chain, thus increasing its appeal as a reliable supplier. The report also recognizes India's specialization in high-value, skill-intensive apparel, dispelling the notion of it being solely a cost-efficient producer. Labor costs and scalability are another plus for India. High labor costs, smaller production units, and expensive logistics pose challenges to scalability. However, on the down side, the limited capacity for manufacturing man-made fiber (MMF) garments restricts India's growth potential in this segment.
Table: A comparative analysis of countries
Country 2013 US Apparel import share (%) 2023 US Apparel import share (%) Key strengths Key challenges China 37.7 21.3 Cost-efficiency, large-scale production Rising labor costs, trade tensions, geopolitical concerns Vietnam 10 17.8 Competitive labor costs, government support, proximity to China Potential over-reliance on China for raw materials Bangladesh 6.3 11.4 Low labor costs, established garment industry Political instability, labor rights concerns, infrastructure limitations India 4 5.8 Political stability, vertical integration, high-value products Labor costs, scalability challenges, limited MMF capacity
Perspectives from key players
India: Industry players are optimistic about the potential increase in orders. Mithileshwar Thakur, Secretary General of the Apparel Export Promotion Council, says the USITC report "has busted the myth by projecting the Indian apparel industry as one specializing in high value-added products."
Bangladesh: The garment sector in Bangladesh is facing challenges due to political instability and rising costs. This has led to concerns about losing market share to competitors like India.
China: China's dominance in the US apparel market has diminished significantly, with its share dropping from 37.7 per cent in 2013 to 21.3 per cent in 2023. Rising labor costs and trade tensions have contributed to this decline.
Vietnam: Vietnam has emerged as a major beneficiary of the shifting landscape, with its share in US apparel imports increasing from 10 per cent to 17.8 per cent over the past decade. Its competitive labor costs and favorable trade agreements have given a growth boost.
The USITC report underscores a dynamic shift in global apparel sourcing, with India gaining prominence as a reliable and high-quality supplier. While challenges remain, India's strengths in vertical integration, political stability, and high-value production position it to capitalize on this evolving landscape. However, addressing labor costs, scalability issues, and expanding MMF capacity will be crucial for India to solidify its position as a leading apparel sourcing hub.
Crystal International Group Limited has launched its Crystal Sustainability Vision 2030 (CSV2030), outlining an ambitious roadmap for sustainable development in garment manufacturing. Building on 17 years of sustainability achievements, CSV2030 sets goals across eight impact areasclimate, circularity, water, biodiversity, wellness, equity, employee engagement, and community partnershipsto address pressing global sustainability issues.
Following the completion of three cycles of its 5year Global Sustainability Targets, Crystal International's CSV2030 reflects an enhanced commitment to environmental and social responsibility. The initiative aligns with the UN Sustainable Development Goals and includes factory-specific actions on a structured timeline to ensure effective implementation.
Crystal’s CSV2030, guided by the tagline ‘Impact for Better,’ highlights its resolve to drive a positive change industry-wide. The plan’s development involved input from stakeholders, thorough industry best-practice analysis, and a review of global sustainability trends. Commenting on this milestone, Catherine Chiu, Vice President of Corporate Quality and Sustainability, expressed confidence in Crystal’s ability to lead sustainable fashion advancements by collaborating with industry partners.
As it embarks on this new chapter, Crystal International is preparing a series of communications to underscore its dedication to sustainability and its commitment to making a meaningful, lasting impact.
Syre, an innovative textile recycling start-up, aims to ‘decarbonize and dewaste’ the textile sector, starting with polyester. Committed to advancing textile-to-textile recycling on a large scale, Syre’s mission is to shift the textile industry from linear to circular processes by converting textile waste into reusable materials. By 2032, the company plans to establish 12 production plants, producing over 3 million metric tons of circular polyester annually, and reducing carbon emissions by more than 15 million metric tons.
In recognition of its impact, Syre received the ITMF Start-up Award 2024 during the ITMF Annual Conference held in Samarkand, Uzbekistan. ITMF Director General Christian Schindler noted that Syre’s membership enhances industry-wide collaboration, which is crucial for scaling circularity and recycling efforts across the textile value chain.
Syre’s Sustainability & Public Affairs Director, Stina Billinger, emphasized that joining ITMF provides valuable access to seasoned textile companies, enabling the start-up to connect, learn, and accelerate its recycling initiatives. Access to ITMF’s resourcesincluding conferences, workshops, and publications further strengthens Syre’s strategic position within the industry.By leveraging ITMF’s network, Syre is set to contribute significantly to sustainable textile solutions, with the goal of reducing waste and emissions industry-wide.
Benin is rapidly evolving as a textile and clothing hub in West Africa, focusing on sustainable cotton production for the global market. The Aid by Trade Foundation (AbTF), through its Cotton made in Africa (CmiA) initiative, is playing a vital role in fostering this transformation, helping Benin’s cotton producers gain access to international markets.
A significant milestone in Benin’s textile growth is the construction of a textile production center near Cotonou, utilizing 100 per cent CmiA-verified cotton. GerlindBaz, senior project manager at AbTF, highlighted the importance of this development during a recent visit, emphasizing CmiA’s contribution to the region’s sustainable textile production. The CmiA standard, which verifies 30 per cent of Africa's cotton production, operates in 11 sub-Saharan countries and supports around 900,000 small-scale farmers.
In early October, marking World Cotton Day, a delegation from AbTF, alongside representatives from GIZ and PAN UK, visited Benin. The team observed CmiA Organic cotton farms in Aklampa, meeting farmers in the Growing Benin’s Organic Cotton Sector project. Managed by PAN UK and OBEPAB and funded by partners including AbTF and Paul Reinhart AG, the initiative aims to support farmers transitioning to organic cotton, positively impacting approximately 45,500 residents.
The project seeks to bolster Benin’s organic cotton industry, ensuring market access and fostering resilience against climate challenges through sustainable practices.
