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Kenya-based Modular Real Estate has commenced the development of a Sh69.4 million Export Processing Zone (EPZ) in the Athi River.
Scheduled for completion within eight months, the facility is one of the first green textile factories in the country. Once operational, it is expected to create jobs for 2,000 Kenyans. To be built using up-cycled containers, the sustainable warehouse will utilise solar energy and rainwater harvesting, reducing CO2 emissions by an estimated 18 tons annually. Spanning 6,000 sq m, the industrial space aims to address Kenya's demand for an additional 100,000 sq m of factory space.
The project has garnered significant investment, including Sh69.4 million from the United States Agency for International Development (USAID), a joint venture with Modular Real Estate, and a Sh170.3 million loan from Trade Catalyst Africa (TCA).
Richard Cheruiyot, Chairman, Export Processing Zone Authority, emphasises on the strategic location of the facility for exports. This industrial park hosts 97 enterprises with 26,760 employees as of December 2023, he states. Activities in the park will include textile and apparel production.
According to the latest data from the Economic Survey 2024 by Kenya National Bureau of Statistics, textiles production in Kenya rebounded from a 3.3 contraction in 2022 to 6.4 per cent in 2023. This growth was largely driven by a 34.4 per cent increase in woven fabric production. However, the production of wearing apparel declined by 1.3 per cent, attributed to a 5 per cent decrease in shirt production during the review period.
As per a report by the Kenya Apparel Insights for 2024, the country's apparel market generated revenue amounting to $5.95 billion (Sh763.2 billion). Industry experts forecast, the sector will grow at a CAGR of 3.51 per cent between 2024 and 2028 to reach a volume of 376.2 million pieces by 2028.
Kenya's apparel market is experiencing a surge in demand for sustainable and ethically produced clothing, driven by increasing consumer awareness of environmental and social responsibility. This trend underscores the importance of initiatives like the green EPZ in Athi River, positioning Kenya to capitalise on the growing market for sustainable textiles.
Minifibers has developed fiber packages using PureCycle resin made from post-consumer recycled (PCR) waste. Developed in partnership with PureCycle Technologies, these packages were further sent to Beverly Knits, a US textile manufacturerto be converted into textiles for a wide range of markets, including home goods, automotive applications, industrial solutions, and apparel products.
These initial product samples aim to assure brand owners that introducing PureCycle resin into their products will not compromise quality.
Dustin Olson CEO, PureCycle, remarks, Minifibers has demonstrated a keen interest in incorporating recycled content into their materials. Traditionally, fiber producers have faced challenges using recycled polypropylene due to varying contaminant levels causing thread breakage during manufacturing. This process eliminates these contaminants at the molecular level, resulting in stronger product quality.
The trial exemplifies the use of PureCycle resin in non-food grade applications. Fiber accounts for approximately 15 per cent of the global demand for virgin polypropylene, and until now, there hasn't been a scalable supply of recycled material to meet that demand. PureCycle resin can serve as a viable replacement for fossil-based polypropylene in many areas.
Ron Sytz, Owner, Beverly Knits, states, the performance of these fabrics is similar to those made with virgin polypropylene fiber, making them nearly plug-and-play for customers. PureCycle’s resin can be seamlessly integrated into textiles, transforming the fabric into a sustainable solution without any compromises. Customers can incorporate PureCycle’s technology into cutting-edge fabrics designed for their specific needs.
The Southern Gujarat Chamber of Commerce and Industry (SGCCI) will host the 'Yarn Expo 2024' from Aug 09-11, 2024, at the Surat International Exhibition and Convention Centre, Sarsana, Surat.
To be hosted in partnership with the Southern Gujarat Chamber Trade and Industries Development Centre, the expo will aim to accelerate the development of the textile industry in Surat besides providing industrialists with the latest technology in yarn production, says Vijay Mewawala, President, SGCCI.
Spanning approximately 116,000 sqft, Yarn Expo 2024 will feature over 80 exhibitors from various cities, including Ahmedabad, Bharuch, Valsad, Vadodara, Silvassa, Mumbai, Bangalore, Chennai, Coimbatore, Erode, Salem, Namakkal, Hooghly, and Kashipur.
Nikhil Madrasi, Vice President, SGCCI, highlights, bringing together yarn manufacturers from across India, this sixth edition of Yarn Expo will showcase a wide range of yarns, including polyester, nylon, viscose, cotton, cationic yarns, and specialty varieties such as antibacterial yarns, imitation silk yarns, granite yarns, and recycled yarns.
The show will be attended by genuine buyers and visitors from numerous states and cities, including Erode, Ichalkaranji, Tirupur, Tamil Nadu, Coimbatore, Haryana, Hyderabad, Panipat, Varanasi, Warangal, Ludhiana, Indore, Amravati, and Bengaluru, notes Ramesh Vaghasia, Immediate Past President of SGCCI.
NiravMandlewala, Honorary Secretary of SGCCI, and MrunalShukla, Honorary Treasurer of SGCCI, add, international buyers from countries like Peru, Thailand, Turkey, Canada, Australia, the US, Germany, Russia, Portugal, Spain, Brazil, UK, Indonesia, Sri Lanka, and the Czech Republic will also attend the show.
The show will also note the presence of weavers, knitters, industry leaders, and entrepreneurs from across the countryalongwith several representatives from South Gujarat's business industry, states BijalJariwala, Chairman -All Exhibitions, SGCCI. Last year, the expo attracted over 20,000 buyers, and this year, more than 25,000 visitors are expected.
GirdhargopalMundra, Chairman, Yarn Expo 2024, emphasises, the exhibition will feature all varieties of yarns, including 100 per cent polyester textured yarn, dope dyed polyester yarn, recycled polyester yarn, slow polyester yarn, blend yarn, cationic yarns, air textured yarns, slub yarns, cotton look polyester yarns, cotton felt polyester yarns, fancy polyester yarns, inherent fire-retardant yarns, and inherent antibacterial yarns.
The Taliban-led Afghan government struck a deal to export 10,000 tons of cotton thread to China, a sign of potential economic progress for the war-torn nation. The Ministry of Commerce facilitated the agreement between Afghan Golden Cotton and Shanghai Khuban Textile, marking a bright spot during National Export Day celebrations in Kabul.
This development comes amidst the Taliban's efforts to woo investors. They've consistently urged local and foreign businesses to invest in Afghanistan. However, the path to economic revival remains arduous. Banking restrictions, high tariffs, and heavy taxes create significant hurdles for the private sector.
Further complicating matters, the Taliban recently appointed Noor Ahmad Agha, a sanctioned individual, as the governor of Afghanistan's Central Bank. This decision raises concerns within the international community, potentially hindering efforts to unlock financial aid crucial for Afghanistan's economic recovery.
While the cotton deal offers a glimmer of hope, Afghanistan's economic future hinges on the Taliban's ability to address investor anxieties and establish a more transparent and accountable business environment.
PureCycle Technologies, in partnership with MiniFibers and Beverly Knits, has achieved a major milestone by producing high-quality textile samples using PureCycle resin derived from post-consumer recycled (PCR) waste.
MiniFibers, a leader in specialty fibers, created fiber packages with PureCycle resin, which were then used by Beverly Knits, a US textile manufacturer. These samples demonstrate that PureCycle resin can match the performance of virgin polypropylene, addressing concerns over quality and contamination that have historically plagued recycled fibers.
PureCycle CEO Dustin Olson highlighted the significance of this trial, noting the challenge of incorporating recycled polypropylene due to contamination issues. PureCycle’s advanced process removes these contaminants at the molecular level, ensuring stronger, high-quality fibers. Olson emphasized that this success opens up opportunities for PureCycle resin in the fiber industry, which consumes about 15 per cent of global virgin polypropylene demand.
Beverly Knits owner Ron Sytz praised the resin's performance, noting it offers a sustainable alternative without compromising quality. Both companies are eager to explore further applications and integrate this technology into various textile markets.
Textile companies are set to report mixed results for the April-June quarter. While spinning firms are expected to benefit from lower cotton prices, leading to improved margins, garment makers will likely face challenges due to subdued domestic demand.
According to Elara Capital, the overall textile industry may see revenue growth of 1.4 per cent year-on-year but a 5.9 per cent quarter-on-quarter decline. However, the brokerage maintains a positive long-term outlook, with Arvind Ltd being its top pick.
Spinning companies are poised to gain from lower cotton procurement costs, translating into better margins. Additionally, increased demand has boosted production volumes. In contrast, garment manufacturers are grappling with muted domestic demand, although export orders have risen due to Western retailers diversifying away from China.
Home textile firms are also expected to see improved margins thanks to favorable raw material costs.
Key players like Arvind Ltd, KPR Mill, and Vardhman Textiles are expected to exhibit varied performances based on their specific segments and market dynamics.
While Arvind Ltd is projected to witness strong garment volume growth, its overall profitability may be impacted by higher costs due to a factory strike. KPR Mill is expected to benefit from increased yarn and garment production, leading to improved margins in the textile segment. Vardhman Textiles is anticipated to see growth in the fabric category but a decline in yarn volume.
The Indian Texpreneurs Federation (ITF) has called on the government to support policy changes to help the country's textile and apparel sector capitalize on the global shift away from China. The sector currently exports $1.5 billion worth of apparel monthly, significantly less than China's $12 billion.
To bridge this gap, the ITF has proposed several strategies, including developing a "ready-to-cut dyed fabric" ecosystem to improve efficiency and cost-competitiveness. The federation also advocates for creating a more integrated manufacturing setup to handle large-scale apparel orders. Additionally, it suggests fostering partnerships with countries specializing in man-made fibers to boost India's market share in the US.
The ITF has submitted a detailed report outlining these recommendations to Union Textile Minister Giriraj Singh, who has expressed support for boosting textile exports and improving cotton yield.
By implementing these measures, India aims to attract a larger share of the global apparel market and create more jobs in the textile sector.
Ludhiana's Federation of Hosiery and Textile Manufacturers Association has issued a stern warning of state-wide protests if the government proceeds with shutting down 33 dyeing units accused of polluting the BuddaNullah. The association claims that without providing alternative facilities, the government's action will cripple the textile industry.
Association president Tarun Jain Bawa criticized the government's Rs 659 crore expenditure on a Sewage Treatment Plant (STP) as a "scam" involving the Punjab Pollution Control Board (PPCB). He alleged corruption and demanded a CBI probe into the mismanagement of funds.
The industry fears severe economic repercussions due to the potential closure of dyeing units, a crucial component of the textile value chain. The association is urging the government to find a solution that protects the environment without devastating the livelihood of thousands.
The Southern Gujarat Chamber of Commerce and Industry (SGCCI) will host the Yarn Expo - 2024 from August 9th to 11th at the Surat International Exhibition and Convention Centre, Sarsana. Covering 116,000 square feet, the event will feature over 80 exhibitors from various cities including Surat, Ahmedabad, Mumbai, and Bangalore.
SGCCI President Vijay Mewawala emphasized that the expo aims to boost Surat's textile industry by introducing the latest yarn production technologies. The sixth edition of the expo will display a wide range of yarns such as polyester, nylon, viscose, cotton, antibacterial, imitation silk, granite, and recycled yarns.
Vice President Nikhil Madrasi highlighted the participation of yarn manufacturers nationwide. The event expects more than 25,000 visitors, including genuine buyers from states like Tamil Nadu, Haryana, and Maharashtra.
Ramesh Vaghasia, Immediate Past President of SGCCI, noted that buyers and visitors from various cities across India, including Erode, Coimbatore, Hyderabad, and Bangalore, are expected to attend the yarn exhibition.
Honorary Secretary NiravMandlewala and Honorary Treasurer Mrunal Shukla noted that international buyers from countries like Peru, Thailand, Canada, Australia, and the USA have also been invited.
BijalJariwala, Chairman of All Exhibitions at SGCCI, mentioned that the expo will facilitate business meetings between manufacturers and buyers. Last year’s expo saw over 20,000 buyers, and this year anticipates an even larger turnout.
GirdhargopalMundra, Chairman of Yarn Expo - 2024, emphasized the showcase of diverse yarn varieties, aiming for significant business growth for exhibitors.
In a report titled ‘Opportunities & Challenges for Indian Textile & Apparel Sector’, the Indian Texpreneurs Federation (ITF) urgesGiriraj Singh Union Textile Minister to provide policy support to the industry to boost exports by capitalising on the opportunities presented by the China Plus One strategy adopted by western buyers.
According to the report presented by PrabhuDhamdodhran, Convenor, ITF, India currently exports apparels worth $1.5 billion every month which is significantly lower than China’s $12 billion. To improve its performance, the sector needs to focus on scale, competitiveness, specialisation, integration, and market diversification, he adds.
To make the SME-based apparel sector more efficient, the government needs to support a ‘ready-to-cut dyed fabric; ecosystem besides developing a semi-integrated and integrated manufacturing ecosystem to fulfill large apparel orders, Dhamodharanadds further. The government also needs to forge knowledge partnerships with MMF-specialised countries and within Indian clusters to increase India’s share in the US manmade fiber (MMF) apparel market from the current 2 per cent.
ITF proposes, the government select five exporters from five major textile clusters and help them diversify into non-traditional markets. Additionally, the industryalso needs to improve cotton yield, the report highlights.
