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Japan's Toray Industries recorded high sales in its Czech subsidiary, Toray Textiles Central Europe (TTCE). With a boost in textile sales, the company is strengthening its position in Central-Eastern Europe’s textile market. TTCE’s sales went up by 72 per cent to about €51 million, last year. This was due to a higher demand for its products and relatively weak Czech krona. The company expanded its net profit by about €5.8 million, which is in line with its rise in sales in 2014.
Due to the facility’s increasing sales, which is located in Prostejov, in the Czech Republic’s south-eastern part, the group is now the largest foreign investor in the country’s Olomouc region. The company plans to expand its output capacity further and create 30 new jobs at the Czech plant this year.
Toray Industries’ products are 100 per cent polyester filament fabrics, plain taffeta, textured taffeta and pongee. Besides, TTCE is the first Czech-based firm to make textiles for automotive air bags, besides, lining cloth, sportswear, furnishing materials, outer-wear, and base fabric for industrial use.
Shozo Sugaya, chief executive of TTCE said that increased share of higher added-value products resulted in improved sales and subsequently, improved financial results for the firm. TTCE increased its sales of polyester lining fabric by 27 per cent, and sales of fabrics used in the manufacturing of airbags by 22 per cent, last year compared to the sales of the same in 2013. According to Sugaya, this was because of increased sales to automotive parts maker Autolive, which is the largest supplier of airbag components in the world.
Hugely popular apparel brand, Executive Order Clothing (EOC), has announced that it would be moving its production from Pakistan to Waterloo, Canada. Apparel brands that have high standards for their clothing and for ethically sourced and manufactured materials, are in great demand. The young, yet promising brand, Executive Order Clothing covers all these aspects well.
Michael J Young Jr, EOC’s founder stated that apart from the brand making remarkable progress even though relatively new, it was also making positive changes to ensure longevity. ‘Cut and Sew’ designs for ladies will be the first step in expansion for the brand on September 11. V-Necks, T-shirts with alligator skin and genuine leather, Polos and sweaters, etc, will be included in the range. Most of these would be handmade, and look and feel stylish.
EOC’s new collection is for both men and women. Men’s shirts will display stunning art and design, crafted by the staff that include experience with some major players such as Akademiks, Ralph Lauran and Enyce. While its women’s wear range spells ‘elegance’ according to young.
Besides, an ‘Executive Exchange’ insurance policy on items priced $35 and above will be offered to customers, where they can exchange any clothing item for a brand new one, no matter in what condition the garment is in.
The predominantly cotton based textile industry in India has been facing several challenges in recent times owing to higher tariffs imposed on Indian textile products in all major international markets compared to competing nations. Undue delay in disbursing Technology Upgradation Fund Scheme subsidies, volatility and uncertainty in cotton prices, sudden glut in the synthetic yarn market, closure of dyeing units in northern states resulting in accumulation of fabric stock in different power loom clusters have added to the crisis of the sector.
At present, the spinning sector has 10 per cent excess capacity, due to poor demand for yarn exports though there have been improvements in recent months resulting in accumulation of yarn stock and liquidity problems. To discuss various problems being faced by the spinning sector, and to decide on the future course of action to mitigate the crisis, the Southern India Mills Association has convened a meeting of its member mills today.
Spinning in India can be classified into two categories: medium and long staple. Development of new varieties of seeds and adopting advanced procedures of cultivation will add to the profit in the cotton textile sector of the spinning industry.
Growth to continue upward ride
The report anticipates the industry to continue on a growth path both in terms of sales and profits even in the near future. Growth in sales will be backed by a continuation in demand for apparels from both the domestic and the overseas markets. Going forward, increase in urbanization, rapid changes in fashion and lifestyle patterns, rise in consumer spending would propel the domestic demand for apparels, it said. On the other hand, improved prospects of global economies will fuel the overseas demand. Furthermore, lower operating and non-operating expenses would result in a healthy growth in the industry’s profits.
During 2015-16, the industry’s sales are expected to grow by 13.3 per cent. Revenues of Page Industries, the largest listed company in the industry, are expected to grow by 26.6 per cent, in both - volumes and realizations. The company is into manufacturing innerwear and primarily caters to the domestic market. Similarly, sales of Rupa & Co, another leading manufacturer of innerwear is likely to grow by 13.5 per cent during the year.
Gokaldas Exports, one of the top apparel exporting companies in the industry, is expected to report a 10.3 per cent increase in sales in the current fiscal. Among the other major apparel companies, sales of Orient Craft, Lux Industries, Pearl Global Industries, Dollar Industries, Sudar Industries and Raymond Apparel are expected to grow in the range of 10-15 per cent.
In the ongoing fiscal, prices of raw materials such as cotton yarn and synthetic yarn are expected to be lower as compared to the preceding year. Prices of cotton yarn are expected to decline by about five per cent and that of polyester by around eight per cent. Consequently, raw material expenses of the industry are likely to grow by 11.5 per cent, slower than the growth in sales. Other expenses viz. power & fuel, wage bills and other operating expenses are expected to increase in the range of 12-14 per cent. Consequently, the industry’s operating profit is projected to rise by 15.5 per cent. Operating margin is likely to expand by 40 basis points to 12.5 per cent.
In 2016-17, the industry’s sales growth is likely to improve to 14.1 per cent. Operating profit is expected to grow by 17.8 per cent and net profit by 24.5 per cent. Operating margin and net margin are likely to expand by 40 basis points and 50 basis points to 12.9 per cent and 6.3 per cent, respectively.
Industryoutlook.cmie.com
Nandan Denim (NDL) has reported a net profit of Rs 15.50 crores for the first quarter of 2015-16 as against Rs 11.47 crores in the corresponding period in 2014-15, a rise of 35 per cent. Net sales for the quarter at Rs 280.50 crores were higher by 6 per cent over previous fiscal’s same quarter net sales of Rs 263.68 crores. NDL reported healthy EBITDA and PAT margin at 16.5 percent and 5.5 per cent respectively.
The company reported EBITDA of Rs 46.23 crores during the quarter compared to Rs 41.13 crores in the corresponding period last year, an increase of 12 per cent. EPS stood at Rs 3.40. During the quarter, the company reported 14 per cent of revenues from export markets. It exports to 28 countries.
Commenting on the performance, Deepak Chiripal, CEO, Nandan Denim said, “The company is following its well defined charter of growth and we are pleased with the performance so far. A disciplined approach in line with the long term strategy would enable us to further cement our position in the industry.”
NDL, a part of Chiripal Group, is second largest integrated denim fabric company and has one of the largest manufacturing capacities in the world. The company commenced its operations in 1994 with textile trading business and forayed into textile manufacturing in 2004. It currently manufactures denims, cotton fabrics and khakis.
www.chiripalgroup.com
The recent free trade deal between the EU and Vietnam may prove a challenge to Vietnam’s neighbour, Cambodia. The agreement offers Vietnam duty-free exports to the EU and may not have an immediate impact, but would eat into similar advantages the region enjoys in the long-term, in the near future. The pact between the two economies, would, do away with 99 per cent of tariffs for selected Vietnamese sectors. This includes, garment and rice industries, which are the mainstays of Cambodia’s economy.
Ken Loo, Secretary General of Garment Manufacturer Association of Cambodia (GMAC), says the new agreement FTA would certainly affect Cambodia’s garment sector, though it would take time. Vietnam will enjoy duty-free exports only in seven years (after sanctioned). The Vietnamese agreement stipulates that garment exports to the EU should only use Vietnam-made fabric, while Cambodian garment exporters can source fabric from anywhere, Loo added. He feels that the impact will be good for Vietnamese items that can make use of the domestic fabric.
Vietnam also enjoys the advantage of locally made raw materials, which would be augmented considering the dearth of local supply in Cambodia, feels Piet Holten, President of Pactics Cambodia, a manufacturer of fabric cases for sunglasses in Siem Reap.
The process of twisting fibres together to make yarn is making a comeback these days. Sarah Anderson of Snohomish, Washington, author of ‘The Spinner's Book of Yarn Designs’ (Storey Publishing, 2012) says that now, textile artists want to control the front end of their yarn. They can pick the wool and silk together and blend the two to make the yarn they want. Anderson adds that there was a renaissance in knitting around 15 years ago and now many of those knitters have started to spin. One can control the weight, texture and colour, by spinning yarn yourself. Besides, today’s fibres are made from plant stock as well, such as wood pulp, and synthetic fibers, such as nylon.
Rachel Romine, a longtime spinner and knitter who works at her family's shop Paradise Fibers, in Spokane, Washington says that many spinners like to try out every fibre available. She’s seen artists spin feathers, shredded newspaper or pet hair into yarn. Anderson argues knitting and crochet, spun yarn can be used in weaving, rug hooking, needlepoint, crewel embroidery and tatting, among other textile crafts.
Natural fibres such as wool, cotton, silk and linen, were spun into yarn during ancient times, with a winding stick, and later with a hand spindle. In the 11th century, with the invention of the spinning wheel in Asia and its entry in Europe around 200 years later, spinning experienced its first renaissance, and the Western textile industry was born.
The Saurer Group has erected a new plant in Gujarat. The project houses world class production facilities which include a sourcing hub for the whole group and service stations for several units like Saurer Embroidery. It has been set up to cater to demands in the domestic as well as export markets. The project allows Saurer to blend German technology with Indian experience and provide customers the latest generation, world class products.
In the initial stage, the factory will manufacture the new Zinser models 71 and 72 both for conventional and compact ring spinning. With up to 1920 spindles, this will be the longest ring frame in the world. The next step would see all the variations of Zinser ring spinning machines and superior automation to be produced at the facility.
Zinser is the only ring spinning machine manufacturer with four ring spinning technologies: conventional short staple, compact short staple, conventional long staple and compact long staple. The new factory would help Saurer produce weighing arms and spindles with double capacity and would also include the addition of a stamping facility within the premises.
The continued support and dedication of Saurer’s top management along with that of the Indigo Project Team allowed Saurer to have the facility ready in record time.
saurer.com/
Cheap imported fabrics, power cuts and a rise in production costs are making it difficult for Nigerian textile traders. Working capital will assist in the retooling of operational textile mills, as well as resuscitate about 80 closed mills and 23 ginneries that have been shut down across the country. Although several factories have benefited from government intervention to revive the country’s textile industry, manufacturers say monetary support alone will not fix the problem.
Electricity supply is below 20 per cent and the business environment is not really good enough for Nigerian products to compete with Chinese imports. Since manufacturers cannot produce enough material, this means textile traders down the line must rely on imports, much of which is smuggled.
At the same time, importers have tightened the supply chain, insisting on upfront payment since the local currency was devalued. In the face of stiff Asian competition, manufacturers are asking for government protection. Until such interventions happen, more traders and manufacturers will be at the mercy of Asian suppliers.
Experts have emphasised the need for improvement of cotton production through financial support for the Institute for Agricultural Research and have recommended financial support for the National Biotechnology Development Agency to enable it to deploy biotechnologically improved cotton at confined fields at trial levels.
After over two and a half years of talks, a free trade deal agreement was recently inked between the European Union (EU) and Vietnam. A first of its kind agreement between the EU and a developing country, this deal will remove almost all tariffs on goods traded between the two economies. Vietnam will also do away with almost all of its export duties.
The FTA tackles other trade-related issues such as public procurement, regulatory issues, competition, and Geographical Indications, apart from eliminating tariffs and non-tariff barriers. Moreover, it also has an in-depth chapter on trade and sustainable development, which covers labour and environmental matters, with special attention to corporate social responsibility and fair and ethical trading schemes.
In 2014, imports into the EU from Vietnam were S$24 billion totally. Key goods included: footwear, textiles and clothing, among others. The state-run Vietnam National Textile and Garment Group, Vinatex, suggests that the value of Vietnam’s textile and garment exports reached $12.18 billion in the first six months of this year, . a rise of 10.3 per cent on the same period a year ago.
The deal between the EU and Vietnam is welcomed by the Federation of the European Sporting Goods Industry (FESI). FESI also notes that the FTA would ensure better market access for high quality European sports equipment and it would also support the sourcing of sporting goods in Vietnam. Vietnam is one of the top sourcing countries for sporting goods globally. Alberto Bichi, FESI secretary general says employment will be created for thousands with FTA between the EU and Vietnam.
