FW
According to the Ethiopian Development Institute of Textile Industry (EDITI) exports for the first six months of Ethiopian fiscal year 2015-16 are lagging behind target. EDITI said that the target was to obtain $60.07 million from textile exports, while only $41.1 million was achieved, meeting 70 per cent of the plan.
The government revealed ambitious plans to stimulate the sector by offering attractive incentives to investors in mid last year. Incentives include duty free import of spare parts of 15 per cent of capital goods for the first five years of operation, the possibility to hire expatriates free from income tax provided they stay for no more than two years.
If declared within six months, the government also offers reconciliation of VAT for materials purchased locally during the project period. More than 152 new investments were expected and least $1 billion was anticipated from the sector’s export. The GTP II is also expected to create more than 170,000 job opportunities.
Ethiopia is also building at least 10 industrial zones and all of them will be set up by the government. However, it was revealed that while cotton production was planned on 262,000 hectares of land, only 65,000 hectares was used for cotton production. The El Nino destroyed cotton crops over 14,000 hectares of land.
Jean Francois Cautain, European Union (EU) Ambassador to Pakistan has emphasised that the business community should explore opportunities in other sectors besides textile and leather, in a bid to take advantage of the GSP Plus scheme. A European Union (EU) delegation attended an international symposium, held in connection with Pakistan Mega Leather Show 2016. It was arranged by the EU funded ‘Pakistan Leather Competitiveness Improvement Programme (PLCIP)’ under European Union’s Trade Related Technical Assistance Programme. PLCIP is working to improve the overall value chain in the leather sector of Pakistan.
According to Cautain, the European Union recently supported Pakistan Mega Leather Show and sent a delegation of Pakistan’s leather sector to India to observe best practices and strengthen relationship between the business communities of both countries.
Meanwhile, PMLS Convener Muhammad Musaddiq appreciated the support and assistance of European Union through PLCIP and said that the PMLS-2016 portrayed the positive image of Pakistan to the world. The PMLS-2016 provided a unique platform for the Pakistani leather industry, including tanners, footwear manufacturers, leather garments and gloves manufacturers, chemical companies, and other vendors supplying equipment, machinery and components to the leather industry to display their products, and provide a single platform for the Pakistani leather industry.
As per National Cotton Council economists, 2016 will be another challenging year for the US cotton industry – with low cotton prices, ample global stocks and uncertainties regarding global mill cotton use. Addressing NCC's 78th Annual Meeting in Dallas, Texas, Jody Campiche, the NCC's vice president, Economics & Policy Analysis said that, while world mill use is expected to exceed world production in 2016, global cotton stocks remain at high levels.
Regarding domestic cotton mill use, USDA estimates US mill use at 3.6 million bales, up 25,000 bales from 2014 and marking the fourth consecutive year of increased consumption. The Economic Adjustment Assistance Program (EAAP) continues to be an important source of stability allowing mills to invest in new facilities and equipment, but the strength of the U.S. dollar is creating challenges for yarn exports.
Export markets continue to be the primary outlet for U.S. raw fiber. In recent years, US export customers have changed, she observed. China is importing less raw cotton fiber, leading to a reduction in world trade. Campiche said that considering the massive stockpiles of cotton and expectations for limited quota, China's imports are expected to fall further in 2016 to 4.75 million bales, down from 5.5 million in 2015.
Meanwhile, India is projected to continue as the world's largest cotton producer and the second largest exporter in 2016. Indian cotton producers continue to receive support through fertilizer subsidies and the Minimum Support Price (MSP) program. In addition, India will begin a pilot program in 2016 that could eventually replace the current MSP with a direct farmer subsidy programme.
India has launched an anti-dumping investigation into imports of jute goods from Bangladesh to see whether export prices are set below fair market prices. The probe is part of India’s plan to impose an anti-dumping duty on jute items imported from Bangladesh.
Bangladesh fears that if India imposes an anti-dumping tariff on Bangladeshi jute goods, this could deal a heavy blow to Bangladeshi millers and exporters and further widen the already huge trade gap between the two countries. Anti-dumping tariff is a penalty imposed on suspiciously low-priced imports, to increase their price in the importing country to protect local industry from unfair competition.
Bangladesh exports jute goods like yarn, twine, sacks and bags. Of the total exports, around 20 per cent goes to India. Other major destinations for Bangladeshi jute items are Turkey, Iran, Egypt, China and the US.
The country gives a cash incentive to encourage jute production and exports, but the cash incentive is decreasing gradually. At present, it stands at five per cent for yarn and 7.5 per cent for other jute goods. The Bangladesh jute industry feels if the anti-dumping duty is imposed, Indian consumers will suffer and will be forced to use plastic bags.
The slowdown in European economies and the Trans-Pacific Partnership agreement may affect Bangladesh’s external trade in 2016. A protracted slowdown in the European Union could hurt exports. Implementation of the Trans-Pacific Partnership, of which Bangladesh is not a member, could also erode the competitiveness of exports to TPP member countries, which account for around one-fourth of Bangladesh’s exports.
The TPP trade deal signed among 12 nations accounts for nearly 40 per cent of the global economy. In addition, the country has to cope with political uncertainty and a weak banking sector. A resumption of political violence or heightened uncertainty would adversely impact investment, growth, and lead to inflation. Continued weakness in the banking sector could undermine credit and growth prospects and affect fiscal sustainability.
Moreover, the outlook for remittances in 2016 is uncertain. While worker outflows have recovered, persistent low oil prices could eventually affect investment and employment in key host countries. From a broader perspective, natural disasters and global climate change pose major risks for Bangladesh.
The bright spot is that Bangladesh enjoys significant cost and scale advantages. Linkages with large emerging market economies and international financial markets remain limited, cushioning against potential shocks from these sources.
New Delhi will host Tex-Styles India from February 22 to 24, 2016. This is the seventeenth edition of the event. The fair will display the whole supply chain of the textiles industry --- from yarns to finished products, which include suitings, shirtings, dress fabrics, made-up items, outer wear and jackets, pants, skirts, one-piece dresses, blouses, shirts, tunics, cut and sew garments, textile gifts, knits, shawls, yarn, fibers, threads, trimmings, embellishment and accessories, furnishings and home textiles, and garments. It will present a wide range of Indian textiles from all sectors of the industry, which includes loom and composite mills sectors.
Tex-Styles India has established itself as the largest fair of Indian textiles held in India. Tex-Styles India is a mega textile event supported by all major textile promotional bodies viz. industry, councils, associations and related ministries and departments of the government of India. The Indian textile industry will spread out its repertoire of merchandise having significant business potential and appeal.
India Trade Promotion Organisation, the premier trade promotion agency for organising trade fairs, showcases excellence achieved by the country in diverse fields especially trade and commerce. Apart from its role in bringing Indian businesses, particularly those in the medium and small scale sector, closer to global markets, it was the first to popularise trade fairs as a tool of trade promotion within the country.
texstylesindia.in/
Despite stalling growth across Asia led by a slowdown in China, the Chip Bergh, Global President and CEO of Levi Strauss & Co remains upbeat about consumer spending in the region. According to him, the demographics work to their advantage and they are strategically focused on Asia as a result of that.
China’s economy, whose explosive growth over the past decade propelled the country to one of the world’s fastest-growing consumer markets, has been stumbling of late. Gross domestic product (GDP) for 2015 was 6.9 per cent, marking its weakest pace in a quarter of a century. Most parts of Asia, especially those with close trade ties with China, have felt the chill from the slowdown in the region’s growth engine.
Analysts say, the region still boasts of a rapidly-growing population and a booming middle class. In China, for instance, only 11 per cent of the 1.3 billion population has reached ‘middle class’ status, according to a January report from Goldman Sachs. ‘As their ranks swell, so will their effect on the global economy,’ the report added.
For a global brand such as Levi’s, this is good news.
Indian textile major Welspun India has reported a 21.3 per cent increase in consolidated profit to Rs 174.08 crores for the third quarter ended December 31. The company had posted a net profit of Rs 143.57 crores in the October-December period a year ago. Domestic retail sales continue to witness robust growth and year to date growth stands at 52 per cent. Net sales of the company on a consolidated basis were up 12.19 per cent.
Operating EBITDA zoomed by 17.8 per cent in the third quarter of financial year ’15. Operating EBITDA margin increased 161 bps at 26.9 per cent, versus 25.3 percent in the third quarter of financial year, mainly on account of higher share of innovative and branded products. Net worth stands at Rs 18,332 million as on December 31, 2015.
Welspun India, part of the $3 billion Welspun Group, is among the top three home textile companies in the world. With a distribution network in more than 50 countries and world class manufacturing facilities in India, it is the largest exporter of home textile products from India. Supplier to 14 of the top 30 global retailers, the company has marquee clients like Bed Bath & Beyond, Costco, Kohl’s, Target, Walmart and Macy’s.
www.welspunindia.com/
Intertextile Shanghai Home Textiles-Spring Edition, will commence from March 16 to 18 at Hall 5.2 Shaghai’s National Convention & Exhibition Center. This is follows Messe Frankfurt’s successful conclusion of Heimtextil Frankfurt in January 2016. March is the peak sourcing season in China for finished products, particularly bedding items, and this market has been growing rapidly in recent years. According to market research conducted by CCPIT, 2015 domestic bedding sales in China reached $49 billion, an increase of 2.7 per cent compared to 2014. Reflecting this growth, a number of top domestic bedding suppliers, including Bejirog, Beyond Group, Esteem Home, Fuana, Luolai, Menglan and South Bedding Series have confirmed their participation in March’s Spring Edition.
Held alongside this fair are four other textile events. These include Intertextile Shanghai Apparel Fabrics – Spring Edition, Yarn Expo Spring, PH Value and CHIC, and together these five fairs create an unrivalled platform in the textile industry to meet potential buyers. The Autumn Edition of Intertextile Shanghai Home Textiles will be held from August 24 to 27, 2016 and is expected to extend from three to four days in order to assist exhibitors to take advantage of these strong market conditions prevailing in China.
Intertextile Shanghai Home Textiles – Spring & Autumn Editions are organised by Messe Frankfurt (HK); the Sub-Council of Textile Industry, CCPIT; and the China Home Textile Association (CHTA).
Pakistan Readymade Garments Manufacturers & Exporters Association (PRGMEA) will hold the 15th Textile Asia 2016 International Textile & Garment Machinery Trade Fair incorporating Clothing, Fabric & Textile Asia in Karachi in collaboration with Ecommerce Gateway . Termed Pakistan’s biggest B2B textile, garment, embroidery, digital printing machineries and chemical and allied services, the 3-days trade fair will be held from March, 09-11, 2016.
The trade fair will provide an effective podium for joint ventures/ collaborations to the textile SMEs and provide a platform to its international participants to meet respective Pakistani business personals to make future business leads in Pakistan.
The event will focus on the immense buying selling potential of textile and garment industry and poised to introduce overseas suppliers of textile and garment materials, accessories and parts and machinery to the textile industry of Pakistan. This will complement their efforts for high quality, value added products and assist them to further develop their business in the export markets.
The trade fair will have more than 550 International Brands displaying their products in over 700 booths and over 500 foreign delegates mainly from Austria, China, Czech Republic, France, Germany, India, Italy,Korea, Taiwan, Turkey, UK,USA etc. will grace the event.
The organizers are expecting a visitor turnout of over 65,000 during the event.
