FW
More than 250 businesses, both domestic and international will take part in the 16th Vietnam International Textile and Garment Industry Exhibition (VTG 2016) at the Saigon Exhibition and Convention Center from November 23 to 26. VTG 2016 is considered to be a good opportunity for suppliers and manufacturers in the sector to meet others in the field.
Besides domestic firms, exhibitors from Thailand, Singapore, Japan, Hong Kong, Germany, Italy, South Korea, India, Indonesia, Bangladesh, Taiwan and China are expected to showcase their machinery, equipment and materials for the textile and garment sector in nearly 500 stalls in the exhibition. Compared to last year, the stall area of VTG 2016 will be 80 per cent bigger as there will be more exhibitors including machines and equipment manufacturers for weaving, automated fabric cutting, yarn spinning, dyeing, embroidery and knitting, chemicals, machinery for printing patterns on fabric and garment accessories.
Pham Xuan Hong, chairman of the HCMC Association of Garment- Textile-Embroidery-Knitting (AGTEK), said that companies in the sector have high demand for advanced technologies to raise their output to compete with imported products. Hence, the exhibition will be an opportunity for them to find what they want. VTG 2016 is organized by Vietnam National Trade Fair and Advertising Company (Vinexad), Taiwan’s ChanChao International Co Ltd, Hong Kong’s Yorkers Trade & Marketing Service Co Ltd and Paper Communication Exhibition Services, AGTEK and the Vietnam Cotton & Spinning Association (VCOSA). Last year’s exhibition attracted around 12,000 visitors and saw many contracts signed.
Cinte Techtextil will be held in China, October 12 to 14, 2016. With around 450 exhibitors from 26 countries, buyers will be presented with a wide range of sourcing options. This is a technical textile and nonwoven fair. Product groups include technology and machinery, woven and knitted fabrics, nonwovens, coated textiles, composites, surface and bonding techniques, fibers and yarns, and more.
There will be pavilions from Korea, Taiwan, Belgium, Germany and Italy as well as an European Zone and Chinese regional pavilions. Notable exhibitors from Taiwan include Mytrex, which will showcase melt-blown nonwoven fabrics with sound absorption features for automobile interiors, a product that was previously used in the filter sector. FTC is bringing its blended flame-retardant fabrics to the fair with bacterial resistance, deodorisation, anti-static and wear-proof features. Healthy Machinery has a range of machines for producing medical textiles.
Two of the big names from Korea are Sam Hwa Machinery and Daejung. Sam Hwa makes needle punching machines as well as nonwoven production lines for geo textiles, automotive interiors, artificial leather and more. Daejung produces high tenacity polyester woven geo textiles, bi-axial and uni-axial woven geo textiles made of polyester multifilament yarn and bi-axial woven geo textiles made of polypropylene multifilament yarn.
Mali, Africa’s second biggest cotton producer is set to harvest a record crop because of good rainfall. Favorable weather, subsidies for fertilizers have also helped boost the harvest due to end in March. The goal is to reach 8, 00,000 tons in 2018.
Mali’s cotton and gold account for about 80 per cent of the nation’s export earnings. The cotton industry provides income to four million people, out of a total population of 15 million. Economic growth is expected to decelerate to 5.3 per cent this year from six per cent in 2015, driven by slower expansion in agricultural output. This would still be above the historical average of about 4.5 per cent.
Neighboring Burkina Faso is Africa’s largest producer of cotton. Mali wants to step up local processing of cotton seed, which is currently at about two per cent. There are 17 deseeding factories and plans are to increase this to 22. The plan is also to increase sales of cotton fiber at the international level, mainly to China and north Africa. Europe’s large clothing retailers source from factories in Ethiopia, and Mali wants to attract similar brands. One lakh hectares planted with cotton will be watered within three years.
Intex South Asia 2016, the region's premier sourcing fair will be held at the Sri Lanka Exhibition and Convention Centre (SLECC), Colombo from November 16 to 18. It would connect the country’s apparel and textile world to South Asia. Intex South Asia focuses on the South Asian region because it is the second largest hub for textile and apparel manufacturing in the world, second only to China. Given its strategic location, logistical connectivity and neutrality, Sri Lanka is the ideal location for a pan-regional show.
The Fair has the distinction of being the only international sourcing show in South Asia that brings together over 150 global suppliers of yarns, apparel fabrics, denims and clothing accessories from India, Pakistan, Bangladesh, Sri Lanka, China, Korea, Taiwan, Hong Kong, Indonesia among many others.
This year there has been an increase of 41 per cent from last year's show. This year too, the Fair has been endorsed by the High Commission of India, Colombo; the Export Development Board of Sri Lanka (EDB); Joint Apparel Association Forum (JAAF) and other trade bodies in Sri Lanka, South Asia and other regions.
Intex South Asia, with its theme ‘One Show - One Platform - One World’ would attract garment exporters and manufacturers, buying houses and agents, importers, distributors and traders, trading houses, local and international retail chain stores, apparel brands and fashion labels, design studios, government bodies and trade associations, etc.
As a sourcing show, Intex South Asia intends to bring international suppliers to Sri Lanka. This will enable manufacturers of the country to get world class fabrics on time thus increasing our competitive edge globally.
"For decades India’s textile industry has been cotton based with more than 60 per cent of the textiles skewed towards cotton. While world over man-made fabric has around 60 per cent share and cotton is less than 40 per cent, in India it is reverse primarily because cotton is the largest produced crop across 10 states in the country. India became the largest cotton producer surpassing China in 2014-2015 and continues its lead for the subsequent year."
For decades India’s textile industry has been cotton based with more than 60 per cent of the textiles skewed towards cotton. While world over man-made fabric has around 60 per cent share and cotton is less than 40 per cent, in India it is reverse primarily because cotton is the largest produced crop across 10 states in the country. India became the largest cotton producer surpassing China in 2014-2015 and continues its lead for the subsequent year. Despite maintaining its lead in global cotton production, India finds itself facing few major concerns including declining harvested area, yield and pests.
Concerns over declining area and higher prices
As per Northern India Textile Mills’ Association (NITMA ), India’s surplus cotton has dwindled, leading to competition between exports and domestic usage, now industry has been forced to import in end season. India is also struggling with one of the weakest stock to use ratio of 12 to 15 per cent against world average of 80 per cent. Adding to this, India’s domestic cotton prices are much higher than international prices and value added industry especially spinning has been suffering despite a strong cotton crop. In 2013-14, India had its largest ever crop of 390 lakh bales yet for nine months of the season, Indian prices were higher than global prices. In 2015-16, prices jumped up 50 per cent in two months and industry had to import, as 20 per cent crop had been exported earlier to competing nations.
The situation is becoming increasingly alarming as the country doesn’t have sufficient surplus cotton, however, exports are strong leading to forced imports at high prices at end season. Also, with countries like Pakistan, Bangladesh, Vietnam, China etc, buying 20 to 30 per cent of our crop, the industry is being forced to import. A statement by NITMA reveals, FY-2016-17 exports are same as 2015-16, domestic mills will face lack of raw material despite high imports. Moreover 2016-17 cotton balance sheet is precarious as sowing is 10 to 15 per cent less and low opening stock. Also, there has not been proper mechanism for measuring crop arrivals and forecasting crop which doesn’t give an industry insight. The uncertainty and concern also stems from the fact that India does not have a clear cotton fibre policy yet.
Domestic mills faces challenge without clear cotton policy
To address rising concerns, NITMA recommends the government interference to ensure sufficient availability of cotton at competitive prices to the industry – otherwise the industry would find it difficult to move up the value added chain and become a large manufacturer of textile products like China, Bangladesh etc and it could instead be rendered as a supplier of raw material like African, CIS nations. Addressing these concerns Sanjay Jain, NITMA President & Deputy Chairman, NITRA says “Allow funding for cotton stocking at subsidized rates of 2 per cent below the base rate for the period October – April, so that industry can stock cotton and ensure farmers get a better price. A system of direct subsidy should be started for farmers when cotton kapas prices fall below MSP.” Insisting on developing a scientific measurement system to forecasts crop arrival he adds “It needs to be conducted by an independent agency. This would avoid mishaps of 2013-14 and 2015-16 where incorrect crop estimates lead to huge losses for the industry as it induced domestic prices going above international prices for a large part of the season.”
NITMA also suggested the creation of a Cotton Board with a clear mission and goal to take India’s productivity to 1,000 kg of lint/hectare by 2020. Jain says “Farmers earnings growth needs to come from productivity and efficiency rather than industry paying more for fibre – this is only way to protect interests of both farmer and industry. There is good scope for increasing yield if agronomy research is taken up & farmer is given knowledge on Precision Farming Techniques.” As the farming techniques differ from area to area, Jain also advocated the idea of scientifically determining the area for accurate and latest forecasting . Further he strongly opines “there should be no discrimination between small and big players – both should be on the same footing government intervention should not lead to unpredictability and uncertainty of supply flow for the industry.”
Global production of apparels increased 1.9 per cent in Q2 but was outpaced by global textile production which grew 3.8 per cent. A new United Nations report states, developing and emerging economies led the gains. On the other hand, textiles registered growth of 5.3 per cent and apparel 3.1 per cent while in rich nations, production fell 0.9 per cent for textiles and 2.7 per cent for apparel.
The results, however, were mixed among producing nations in both emerging and rich economies in both sectors, the report said. This reflects the fragile recovery process in industrialised economies and the significantly weakened growth prospects in developing and emerging industrial economies.
Significant growth rates of over 9 per cent were found in production of apparels in Poland, Turkey and Vietnam in particular, the report disclosed. In the aftermath of protracted economic crisis, China, which emerged as the largest global manufacturer, entered a transition period and witnessed a more balanced growth pace. This pushed the average industrial growth of emerging industrial economies downward.
The report also said that the world’s manufacturing growth has also been affected by the generally lower growth rate in the US and Japan. The overall manufacturing growth in Europe, North America and East Asia remained sluggish during the quarter, the report found. World manufacturing output rose by 2.2 per cent in the quarter compared to the same period last year which is marginally higher than the 2.1 per cent growth estimated for the first quarter of 2016.
Textile and apparel firms in China's Xinjiang Uyghur Autonomous Region are actively seeking opportunities in neighbouring countries in Asia and Europe at the ongoing 5th China-EuroAsia Expo which is being held in the region's capital Urumqi. Around 121 companies of Xinjiang are participating in this year's expo. Many textile and fabric products such as Idili silk, Hotan carpets and camel's hair textiles produced in Xinjiang are being presented in the five-day expo.
Nearly 12 foreign companies including some from Russia, Pakistan and Kazakhstan have shown strong interest in cooperation. Some business representatives from companies in neighbouring countries are participating in the expo especially because of the garments and carpets produced in Xinjiang.
As the company continues to grow, Yutai is carving out opportunities to expand into Asia and European countries. The company had signed agreements worth $3.15 million with foreign companies. The increase in opportunities to do business with Asian and European countries is fueled by Xinjiang's geographic location along the Belt and Road initiative and preferential government policies, industry players claimed. It is said that the time and cost of deliveries have shrunk a lot thanks to cross-border basic infrastructure building.
In line with the Belt and Road initiative, the Xinjiang government has rolled out a series of measures including credit support and electricity subsidies, in a bid to prompt industry development. The textile industry in Xinjiang has seen rapid growth in the last two years. In 2015, its total fixed-assets value stood at 31.79 billion yuan, up 231 per cent year-on-year, it has been reported. The labour-intensive textile industry has provided many job opportunities in Xinjiang, it has been reported. For example, 382 new textile firms emerged in 2015, creating a total of 97,000 jobs, said the report.
Despite an overall slump in India’s textile sector, Gujarat has performed remarkably well through policy support from both the Centre and the state government. The textile sector in the state has registered a growth of 18 per cent. The Textile Commissioner’s regional office in Ahmedabad reported that over the past decade since 2004, Gujarat has maintained a consistent growth of nearly 18 per cent. The Centre’s Technology Upgradation Fund Scheme (TUFS), along with the state government’s policy has helped entrepreneurs in the State to reap huge benefits in the sector.
Currently there are 144 composite mills including those for spinning, 897 cotton ginning and processing units, 22 surgical cotton units, 2,362 units for processing of readymade garments, 362 units for technical textiles, 513 power processing units and 1,146 hand processing units in Gujarat. Of these 95 per cent are located in Rajkot. Additionally, Gujarat also currently has 60 home textile units and 5,053 preparatory units for weaving.
Gujarat, which has been a hub for the textile industry since the 19th century, has been active in availing TUFS as compared to other states. According to records maintained by the regional office in the State, of the 5,136 applications made for 15 per cent of capital subsidy scheme, nearly 87 per cent originated from Gujarat. Of the Rs. 230.11 crore subsidy disbursed, 75 per cent was to units and entrepreneurs in Gujarat.
The capital subsidy scheme also allows for 20 per cent and 30 per cent subsidy exclusively for weaving units. For the former, nearly 28 per cent of 4,267 applications were from Gujarat while 25 per cent of R382.02 crore subsidy was disbursed to units in Gujarat. Under the 30 per cent subsidy scheme, about 46 per cent of 441 applications hailed from Gujarat and nearly 50 per cent of the R178.03 crore was also disbursed in Gujarat.
August and September saw poor demand for polyester industrial yarn in China. But polyester industrial yarn export growth expanded rapidly, far higher than that of 2015. Foreign buyers largely procured ahead of time. August/September exports may see negative growth rates. The G20 regulation did not affect PIY production much, only about 10 per cent of total PIY capacity in China.
Downstream plants widely stocked raw materials with expectations of higher prices in future. Foreign sales were brisk in the first half of 2016. The polyester textile filament market was heavily impacted as a lot of plants shut down and spot prices were pushed up. Downstream may need to replenish their stocks and polyester industrial yarn plants may cut inventory at the point. Their profits were very thin. Demand for downstream products, for geo-technique or car use, etc. too decreased.
Sales promotion is one way of stimulating downstream demand and improving the market situation. Polyester industrial yarn has been one of the most widely used yarns among all types of industrial yarns and it is known for its high tenacity, low elongation and high abrasion resistance. High tenacity yarns are required in a variety of industrial applications such as conveyor belts, ropes, geo-grids, lashings /slings, automotive seat belts and industrial fabrics.
Paula Schneider, chief executive officer of American Apparel, has decided to relinquish her duties after a two-year successful service. She will be replaced by Chelsea Grayson who has been with the company through most of its difficult times including the time when the company filed for bankruptcy last year. Later, it emerged as a private company earlier this year. Most recently, Grayson served as American Apparel’s general counsel and chief administrative officer.
Sources close to the company said that Schneider voluntarily resigned from the company and was not pushed out. She is confident of Grayson as the new head of American Apparel which is still going through a rough patch. In her resignation letter, Schneider said that the turnaround plan for American Apparel was in place and that much of the heavy lifting and hard work had been done. Schneider’s move comes at a time when the company is up for sale. Schneider hinted that a potential sale of the company was another impetus for leaving.
