FW
The Vietnam Textile and Apparel Association (VITAS) wants the country’s master zoning plan for textile and garment industry development plan to be revised as it has become outdated. The industry’s shipments amounted to $27.5 billion last year and are expected to soar to $31 billion this year. Therefore, it is necessary to adjust the master zoning plan for textile and garment industry development until 2020 with a vision toward 2030, said Vietnam’s Deputy Minister of Industry and Trade Ho Thi Kim Thoa.
He said that Vietnam’s textile and garment sector is projected to grow strongly in the next decade owing to more bilateral and multilateral trade agreements the country has signed, especially the Trans-Pacific Partnership (TPP). Also, apparel importers are shifting orders to markets with abundant low-cost labour. As per VITAS’ chairman Vu Duc Giang, there is a big gap between the master zoning plan and reality. Hence, the association asked the government to review and revise it.
The textile and garment industry is in a good position to grow strong and the government needs to have a long-term strategy to develop the industry and enable it to bank on opportunities from the country’s international integration.
Despite being the fourth largest producer of cotton in the world, Pakistan remains at the bottom of the ladder in productivity. Its average per hectare yield of 560 kg is better than the Indian yield of 516 kg. However, India grows bulk of its cotton from rain-fed areas as against irrigated land that reduces its production cost. In contrast, Pakistan grows most of its cotton in the irrigated land of southern Punjab and Sindh. Pakistan’s cotton yield when compared to China is even lower. With a 1,460 kg yield, China extracts 2.6 times more cotton from the same piece of land than Pakistan does.
With the exception of Australia, all major cotton producing regions have recorded a decline in production in the last fiscal. In terms of the fall in percentage, Pakistan remains worst hit. Numerous factors such as pest attack, insufficient inputs and limitation of varieties contribute to the radical decrease in Pakistan’s production.
China is still the cotton powerhouse that holds 62 per cent of world’s cotton stocks of 104.1 million bales. But it is expected to lose its position as the largest producer of cotton to India due to unfavourable weather conditions and reduced government support. The Chinese government that has taken up various policy measures to cater to the cotton requirement of its large textile industry remains cautious about price stability to ensure growers are not hurt. It is releasing targeted quantities from its cotton reserves and allowing limited cotton imports.
With smaller landholdings per farmer and with substantial rain-fed areas, China reaches the highs of cotton productivity only due to adoption and application of technology and related innovations. It remains a keen follower of intensive cotton farming technologies.
The September edition of Milano Unica will be held from September 6-8, at Fieramilano Rho. This edition deals in fabrics, clothing, textiles and fashion and has been designed for a global audience. It will open on the last exhibition day of both the Micam, (that showcases products like stylish and fashionable shoes for men, women and kids) and Mipel, (the leather goods market) to underscore the determination and political-economic importance of teaming up.
The 'New Beginning' of the 23rd edition of Milano Unica has been envisaged on the principle of offering a new dimension of service, creativity and excellence of the proposals put on display, with a view to accompanying visitors through the values of quality and authenticity that characterize ‘Made-in-Italy’ production.
Italy's most prominent and important manufacturers will participate in the exhibition along with scores of foreign exhibitors and participants from the Japan and Korea observatories , that were selected based on product quality. Along with the Japan and Korea observatories and traditional Vintage Area, Milano Unica will also include an exhibition that gives visibility to the designers of 'The Fabric Program', the project developed in collaboration with the US Chamber of Fashion (CFDA).
Milano Unica represents an innovation in textile and accessories trade shows, as it introduces a new system of establishing relationships between fabric manufacturers and customers and, also, the entire fashion system, thanks particularly to the thorough and complex trend research area.
The proposed merger of Grasim Industries and Aditya Birla Nuvo(ABNL) is the group’s long-term strategy to shore up promoter holding to 40 per cent in all listed entities. In May 2004, group chairman Kumar Mangalam Birla had said he wanted to shore up the promoter holding to 30 per cent. This was accomplished by December 2010 through a series of restructurings, creeping acquisitions and preferential allotments. After this threshold was raised, in October 2011, Birla stated he wanted to increase promoter holding to 40 per cent. This has also largely been achieved, except in Grasim where the promoter stake is currently 31.3 per cent.
The proposed merger will increase the promoter holding to 39 per cent, not much far away from the 40 per cent target. Across the group, the promoter family’s control over listed companies has been higher than its direct shareholding – an arrangement typically seen in the Indian markets of the 1970s.
A look at how the shareholding has been increased reveals that between 2000 and 2007, the preferred mode was creeping acquisitions. From 2008 onwards, the stake increased, mostly through preferential allotments of shares and warrants. In 2015-16, and with the proposed transaction, the preferred mode to increase shareholding is through corporate restructurings. The scheme is likely to give the promoter group a higher holding of almost 74 per cent effective ownership of the financial services business once it lists.
Mumbai based Indo Count Industries (ICIL), known for spinning yarns, weaving fabrics and manufacturing textiles, is eyeing 15-20 per cent growth in business through exports. The company also offers cotton yarn and cotton knitted fabric on back of capacity expansion and strengthening business in the domestic market. ICIL, which nets 90 per cent of its revenue from exports, is also looking at expanding its export markets and strengthening its presence in other markets including Australia, Japan, South Africa and the Middle East.
The company, has three manufacturing units in Kolhapur and is spending around Rs 475 crores in two phases on capacity expansion. The investment will be funded by internal accruals and debt. Being a leading global player and a trusted supplier to the world’s top home linen brands, ICIL is known for its innovation, technology and for maintaining high quality standards across all its product ranges.
Having been in the business for over two decades, the company is looking at launching a range of premium bed linen for the Indian market. It is looking at changing the dynamics of current market and transforming the way consumers see and experience bed linen.
ICIL’s main goal is to bring premium quality products to Indian consumers through Indo Count Retail Ventures (ICRVL) and the launch of the domestic home textile brand Boutique Living. The company exports to approximately 50 countries in. It has showrooms and distribution centers in the United States, the United Kingdom and Australia. It also sells products online and through e-tailers.
Swedish company Hennes & Mauritz AB (H&M), has come in the eyes of the International Labour Organisation (ILO) for contracting with factories that allegedly violated child-labour laws in Myanmar. The other companies that have broken the law are Primark, Gap and Adidas which also source from Myanmar.
A book being published in Sweden next week describes how two factories in Myanmar had workers as young as 14 working more than 12 hours a day making clothes. H&M was one of their clients. In developing countries such as Myanmar, international conventions on child labour developed by the ILO allow children to start working at the age of 14 but that length of work hours violates both the conventions and Myanmar’s own laws.
What is bugging the ILO is that children work for long hours (especially overtime) or night shifts though it is not permissible. Interestingly, Myanmar happens to be one of the few countries that has not signed the convention laws including Bangladesh, India and the US. H&M said it has demanded an action plan, including improved recruitment routines for handling ID cards from the factories where these conditions have reportedly existed since 2013.
Nepal’s local apparel manufacturers have sought incentives from the government to boost exports. In a meeting with Finance Minister Krishna Bahadur Mahara, a delegation of Garment Association Nepal (GAN), an umbrella body of readymade garment producers and exporters said if the government extends some facilities as per their demand, they would expand their export base by three folds within three years.
Submitting a memorandum to the finance minister, the Association asked for the expansion of refinancing period for export-oriented industries, 10 per cent export incentive, end to strikes and bandhs as well as introduction of hire and fire provision in the labour act to boost exports. GAN has said that they will be able to compete with other garment exporters in the global market if the government provides these facilities.
In its 500 biggest and best midsize companies’ rankings, Fortune India has honoured Nandan Denim that is poised to be Asia’s largest denim fabric manufacturer. The company ranks at N0. 38 among Fortune India Next 500 (2016) companies for wealth creation over three years. Besides, over five years, it has been ranking 42nd with 45.21 per cent CAGR increase in market capitalization as of April 2016.
Every year, Fortune India comes out with the definitive ranking of India’s 500 biggest and best midsize companies. The list celebrates those organisations that fuel India’s economy. Nandan Denim is a part of leading conglomerate, Chiripal Group that was established in 1972 and is currently diversified across several businesses like textiles, petrochemicals, chemicals, packaging, infrastructure and education.
Headquartered in Ahmedabad, Gujarat, Nandan Denim has expanded its capacity from 6 MMPA to a 110 MMPA (estimated in FY 2017) over last 10 years, a 15 fold growth in denim capacity in last one decade.
Fashion World Tokyo, supposed to be Japan’s largest bi-annual fashion trade show, will be held from November 7th to 9th at Tokyo Big Sight. The three-day event will showcase latest trends in clothing, bags, shoes, fashion and jewellery from around the world. As many as 850 exhibitors and nearly 28,000 visitors are likely to attend the show this year. The show will comprise of seven exhibitions viz the Tokyo Fashion Wear Expo, Tokyo Shoes Expo, Tokyo Bag Expo, Tokyo Fashion Jewellery Expo, Tokyo Men’s Fashion Expo, Textile Tokyo and OEM/Sourcing Expo.
The 2016 edition of Fashion World Tokyo will also hold conferences and seminars to stimulate the fashion market in Japan which will be addressed by opinion leaders of the Japanese fashion industry besides providing a unique opportunity to source Japan’s high-quality fashion products and connect with Japanese design firms. The show has been able to attract a great number of industry professionals and has become the most sought-after business platform in the Japanese fashion industry.
Vietnam’s exports to the Eurasian Economic Union (EAEU) are expected to grow by 18 to 20 per cent a year. The union consists of Russia, Belarus, Kazakhstan, Armenia and Kyrgystan. A free trade agreement, which this union has with Vietnam will come into force soon. Vietnam will be the first FTA partner of the union.
The agreement covers a market of almost 183 million people and accounts for 3.2 per cent of global gross domestic product. Vietnam and the union will cut about 90 per cent of their lines of tariff. They will slash the rate for nearly 60 per cent of tariff lines to zero per cent immediately after the agreement becomes effective.
Vietnam will immediately lift import duties for EAEU products such as salmon, which is taxed by 10 per cent, and tilapia and tuna, now seeing tariff rates of 15 to 20 per cent.
The EAEU will apply a zero per cent tariff for Vietnamese products such as uncondensed milk and ice cream with no sugar and sweet substance, which has an import tax of 15 per cent; and fresh chestnut and turkey meat, which are subject to import duties of five per cent and 20 per cent.
