A Coimbatore court has said exotic forex derivatives sold by banks to garment exporters during the global financial crisis in 2008 were illegal. The Tirupur Forex Derivatives Consumer Forum, which was formed by 25 exporters from Tirupur, who lost more than Rs 400 crores in the issue, moved court in Coimbatore saying that as many as 19 banks were involved in the fraud by selling the product that was not authorised by the Reserve Bank of India.

The court observed that the products sold by the banks were against the country’s laws and public policy, and also against RBI rules and guidelines. Garment exporters incurred losses due to fluctuations in currency rates while getting payments from overseas buyers. Banks were involved in the fraud, which was responsible for at least Rs 38,750 crores moving out of the country.

Exporters are now upping the ante seeking a CBI probe into the issue. In 2007-08, the rupee appreciated sharply to 39 to the dollar from 46 in just 15 days. At Rs 25,000 crores, Tirupur accounted for 45 per cent of total exports of readymade garments from the country last year. Exports fell short of the targeted Rs 30,000 crores with Brexit and the subsequent fall in the pound value upsetting calculations of exporters.

American apparel component supplier, QST, has curated a collection of components to better serve the denim market. QST is present in more than 60 countries for sourcing, selling and manufacturing components for the apparel and denim markets, including pocketing, interlining, embroidery backings and more.

The collection is based on four traits of a fully-functional jean—comfort, flexibility, strength and reinforcement—and it includes time- and cost-efficient technologies made specifically for key jeans wear items.

Before launching the collection, the company did its homework to see where the industry was going and what trends were out there that could be improved, be it distressed denim, stretch denim, embroidery or coatings. The aim was to make sure these trends were complemented with components that enhanced the final product.

The denim industry is home to many legacy brands, but few endure decades—or centuries—without evolving their message and products. Innovations from the active wear category continue to influence and push denim brands to deliver more bang for the buck.

QST’s wick-tech pocketing is a non-absorbant pocketing that allows for a dry, comfortable wearing experience. Wick-tech ultrafuse for waistbands draws moisture away from the body. The high-tech polyester material allows moisture to easily evaporate.

The number of buyers at the 123rd China Import and Export Fair, widely known as the Canton Fair, increased by 5.3 per cent year-on-year, recording a five-year high. The Canton Fair, is the largest and most important trade fair in China held in Guangzhou, South China's Guangdong Province. It recorded a transaction volume of 189.2 billion yuan ($30.1 billion), up 3.1 percent year-on-year on May 3, 2018.

In spite of the escalation of trade disputes between China and the US, the number of US buyers increased 7.85 per cent year-on-year, to 11,929. Yet, some of them held a reluctant attitude toward making deals which resulted in a drop of transactions in sectors including home appliances, shoes and garments.

The Delhi High Court decreed last month that Mosanto Co cannot claim patent on its GM cotton seeds. The court concurred with Indian seed company Nuziveedu Seeds Ltd (NSL), which argued that India’s Patent Act does not allow Monsanto any patent cover for its genetically modified (GM) cotton seeds. Monsanto Co has appealed to the Indian Supreme Court against the ruling.

New Delhi had approved Monsanto’s GM cotton seed trait, the only lab-altered crop allowed in India, in 2003 and an upgraded variety in 2006, helping transform the country into the world’s top producer and second-largest exporter of the fibre. The technology went on to dominate 90 percent of India’s cotton acreage. Now the Delhi High Court’s decision has made biotechnology companies apprehensive about investing in their businesses because they apprehend that they will lose patents on their expensive technologies. The ruling could deem nearly 107 patents as void

Cotton linter pulp mills and refined cotton plants in China are largely running with low operating rates, exerting a significant impact on the cotton linter import market. China’s imports of cotton linter in March were up 101.2 per cent month on month but down 70.2 per cent on a yearly basis.

The cotton linter import market has witnessed big volatility since the beginning of this year. In March, China’s imports of cotton linter from Turkey were 37.6 per cent of the total. Imports from the US occupied 22 per cent of the total.

For Q1 of 2018, China’s imports of cotton linter from Turkey and the US took up 40.5 per cent and 22.6 per cent of the total. Imports from India and Turkmenistan respectively occupied 17.44 per cent and 8.75 per cent of the total.

The import price in March was down 5.75 per cent year on year in the first quarter. Year on year it was down 4.18 per cent. Turkey and the US are the largest origins of China’s imported cotton linter while imports from India and Central Asia have decreased evidently. The ban on solid waste (including cotton waste) which took effect in January 2018, as well as the intense pressure of environmental protection, have exerted significant on cotton linter pulp mills and refined cotton plants.

Lisky, a global name in knit technology, will set up a sportswear manufacturing plant with sophisticated technology at Sadapur, Savar near Dhaka. The global sportswear market now stands at $270 billion. Although Bangladesh is the second largest garment exporter worldwide, it earlier had little presence in world sportswear market. However, now many Bangladeshi apparel makers are gearing up to enter the global sportswear markets, as demand for the items is on the rise with changes in taste and fashion.

The garment industry is the biggest sector in Bangladesh. It contributes more than 80 per cent of the total export of the country. The present government is the industry & business-friendly and ready to extend any cooperation to the development of the industry.

Net inflow of foreign direct investment (FDI) from India to Bangladesh rose by 44.76 per cent in the last year. Around one-sixth of the FDI was injected into the banking sector. This was followed by textiles and power. The India-Bangladesh relationship has started improving since 2009-10.

Though investments have more than doubled in the last two years, the flow is still minimal. Prominent Indian investments in the country are from Airtel, Marico, Godrej and VIP Industries.

Bangladesh is bullish about export-oriented investments as a remedy to its lopsided balance of trade with India. Co-operation initiatives are opening up opportunities for infrastructure companies. L&T is building three gas-based power plants for Bangladesh generation companies. The infra major has also got a contract for constructing a new airport.

The Indian denim fabric industry will continue to face margin pressures in 2018-19 due to oversupply. About 15 to 20 per cent of the total capacity will remain underutilized. Additionally, competition will intensify as several players have undertaken capacity additions to add another 150 million meters a year. Denim fabric capacity additions are expected to outpace garmenting capacity additions over the short term, translating into a continued denim fabric surplus in the market. However the long-term demand potential for the segment remains intact due to denim’s versatile fashion appeal among the young populace, a rising disposable income and untapped semi-urban pockets of the country.

India is a leading denim fabric manufacturer in the world. However, the sector’s operating margins are expected to remain in the range of 10 to 11 per cent in the current fiscal. Though the denim fabric industry is cyclical in nature and characterised by periods of excess capacity, the present downturn may be relatively prolonged, partly on account of the regulatory disruptions that the industry underwent in the last two fiscals.

The credit profile of denim fabric manufacturers is likely to moderate over this fiscal amid the continuing contraction of operating margin and debt-funded capacity expansions. <br/

Outdated labor laws in the textile sector, is hampering India’s growth in global textile industry. The country is not perceived as a low cost labor destination. Incentives offered in India are far below those offered in China. So, Indian products lose on price competitiveness in global markets.

Bad roads and poor connectivity around weaver hubs have led to reduced number of visits by buyers, leading to a greater dependence on buying agents. The high import cost of machines deters many small manufacturers from upgrading to latest technology, thereby contributing to compromises on quality.

There is a need for strengthening the eco-system for textile exports, integrating the fragmented textile value chain and investing in skill upgradation to boost India's sourcing potential. Other necessary measures are innovation in new products, business models and collaborations; digitisation of the entire supply chain from product development to delivery and ensuring compliances related to quality and legal issues.

Key to success will be encouraging product as well as market diversification for varied textiles and apparel products and clear positioning of Indian textiles in international markets. The focus should be on promoting niche areas that cover indigenous artisans, weavers and craftsman as they provide a unique identity to the country’s textile output.

As per Zacks Investment Research, Wall Street brokerages have forecasted Gap Inc’s sales will be worth $3.61 billion for the current quarter. Nine analysts have issued estimates for GAP’s earnings, with lowest sales estimate being $3.45 billion while the highest estimate being $3.75 billion. The company reported sales of $3.44 billion in the same quarter last year, suggesting a positive year over year growth rate of 4.9 per cent.

Zacks, analysts expects GAP to report full-year sales of $16.30 billion for the current fiscal year, with estimates ranging from $15.93 billion to $16.77 billion. For the next fiscal year, analysts expect the firm to report sales of $16.67 billion per share, with estimates ranging from $15.93 billion to $17.37 billion.