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SP Apparels (SPAL), a prominent player in the apparel manufacturing and export industry, has sealed a significant deal to acquire 100 per cent ownership of Young Brand Apparel Private (YBAPL), a subsidiary of Bannari Amman Spinning Mills. Valued at Rs 223 crore, this strategic move underscores SPAL's ambition to broaden its product offerings and expand its market reach.
The acquisition involves SPAL acquiring a 51.3 per cent stake in YBAPL from Bannari Amman and committing to obtaining the remaining 49 per cent stake from joint venture partners. To finance this transaction, SPAL intends to utilize a combination of internal funds and external borrowing.
This deal not only allows SPAL to diversify its product range but also enhances its manufacturing capabilities with the inclusion of YBAPL's garment unit in Palladam and the additional land and building assets located at SIPCOT. These assets are poised to bolster SPAL's manufacturing capacity, laying a solid foundation for future growth and expansion initiatives.
Established in December 2006, YBAPL specializes in the production and export of Intimate Wear, catering to renowned brands such as American Eagle, Jockey International, Marks & Spencer, and Benetton. Its presence extends across key global markets including the US, UK, Japan, and Canada.
P Sundararajan, Chairman and Managing Director of SPAL, emphasized the strategic significance of the acquisition, noting its alignment with SPAL's vision to venture into diverse textile and apparel segments. He highlighted the potential synergies in terms of customer base and product offerings, particularly in penetrating the lucrative US market.
YBAPL's robust financial performance, with reported revenue of Rs 329 crore for the fiscal year ending March 31, 2023, further underscores the attractiveness of this acquisition for SPAL. This move not only strengthens SPAL's export portfolio but also sets the stage for sustainable and resilient business growth in the competitive global marketplace.
Technical textiles leader Garware Technical Fibres reported a 25 per cent increase in pre-tax profits (PAT) to Rs 180.2 crore for the first nine months of FY2024.
On a Q-o-Q basis, Garware Technical Fibers’ net sales during the quarter increased by 5 per cent to Rs 289.4 crore, profit before tax rose by18 per cent, and net profit jumped by 18 per cent compared to Q3 FY2023.
The company remained challenged by international logistics disruptions during the quarter. It reported strong growth in the Geosynthetics business and maintained margins across all segments.
Vayu Garware, Chairman and Managing Director expressed optimism for Q4 due to a robust global aquaculture order pipeline. However, he cautioned the company about potential material delivery challenges in Europe and South America.
Overall, Garware Technical Fibres’ strong order book and focus on margin improvement paint a positive picture for the future.
Scoop, the renowned fashion showcase, is poised to reveal an array of captivating Danish designers in its upcoming event, themed 'A Return to Wonderment' at Olympia West, Kensington, from February 11-13, 2024. Partnering with SMVdanmark, Scoop will introduce 21 cutting-edge Danish fashion collections to its dynamic platform.
Karen Radley, Founder and Managing Director, expresses enthusiasm for the influx of Danish talent, citing its high-quality and minimalist allure, perfectly suited to the British market.
Among the highlights, Bitte Kai Rand will present a luxury collection distinguished by its knitting expertise and innovative designs. Esme Studios will showcase slow fashion emphasizing minimalism and functionality, while American dreams offers vibrant mohair knitwear. Charlotte Sparre brings nostalgia with her elegant 50s-inspired collection, featuring luxurious fabrics.
Noteworthy additions include Heyanno's fusion of men's fashion and grunge aesthetics, Selfhood's blend of sophistication and edginess, and Summery Copenhagen's celebration of vivid colors and craftsmanship.
Accessories seekers will be delighted with offerings from Bon Dep and anonymous fashion footwear & accessories, reflecting contemporary and minimalist styles.
Copenhagen-based brands like A Kjaerbede, Picto, and Maanesteen will also showcase their signature Scandinavian designs, alongside a lineup featuring Dawn x Dare's handcrafted styles, Moves' colorful prints, and dedicated's eco-friendly wardrobe.
Scoop promises an edited lineup of around 200 designers, spanning women's fashion, luxury home, beauty, lifestyle, and men's collections, solidifying its status as a must-visit on the international trade show circuit.
Archroma, a leader in sustainable specialty chemicals, and Browzwear, a pioneer of 3D digital solutions for fashion, have amplified their collaboration. The integration of Archroma’s complete Color Atlas library into Browzwear’s platforms promises a game-changing shift in fashion design.
Designers will now wield a robust palette of 5,760 colors, including 1,440 polyester hues, alongside the existing 4,320 cotton poplin colors. This expansion aims to foster seamless collaboration across the supply chain, ensuring color fidelity from digital conception to production across various fabric types.
Notably, the Color Atlas colors adhere to stringent eco-standards, empowering designers to select dyes and finishes aligned with sustainability objectives. Each color standard is accompanied by precise dyeing recipes and compliance data, supplemented by Archroma’s global technical support.
Lars Villumsen of Browzwear highlights the empowerment of their community through access to the industry's largest color library, facilitating transparent, sustainable, and collaborative workflows.
Chris Hipps of Archroma emphasizes the fusion of Browzwear's digital tools with the expansive Color Atlas, enabling designers to realize their visions while upholding sustainability principles amidst the fashion industry's digital transformation.
In a landmark move, the Sustainable Apparel Coalition (SAC) and the Social & Labor Convergence Program (SLCP) have solidified their strategic partnership, heralding a new era in the quest for improved working conditions in the apparel sector. SLCP, having recently transitioned into an independent non-profit foundation, celebrates its separation from SAC, signifying a maturation of its mission since its inception by SAC in 2015.
The collaborative efforts have yielded significant achievements over eight years, with SLCP boasting more than 11,000 facilities across 60 countries having undergone SLCP-verified assessments. Notably, the adoption of SLCP's Converged Assessment Framework (CAF) has unlocked an estimated $23 million annually through reduced duplicative audits, garnering support from over 70 prominent brands and organizations.
With SLCP's formal separation on February 1, 2024, both entities reiterate their commitment to a tightly integrated collaboration, aligning their tools and strategies for enhanced global working conditions. SAC remains steadfast in its support of CAF as the preferred social compliance assessment framework, ensuring its integration into the Higg Facility Social & Labor Module (FSLM) tool.
Andrew Martin, SAC's executive vice president, emphasizes the shared values propelling the partnership towards catalyzing collective action at scale. Janet Mensink, CEO of SLCP, echoes this sentiment, highlighting the collaborative power of industry-wide cooperation in advancing social responsibility.
Looking ahead, SAC and SLCP are poised to extend their impact beyond the apparel industry, aiming to expand the reach of CAF into adjacent sectors. This holistic approach underscores a commitment to harmonized assessment frameworks and increased adoption, fostering a culture of responsibility and accountability within the industry.
The strategic collaboration between SAC and SLCP sets a precedent for industry convergence and collective action, underscoring a shared vision for a sustainable future in global supply chains.
Tajima Software Solutions and Coloreel are set to unveil Pulse ID, an innovative software poised to redefine the landscape of embroidery customization. This innovative tool promises a quantum leap in personalized design options for both brick-and-mortar and online retail platforms.
Pulse ID empowers users with unparalleled flexibility, allowing seamless customization of embroidery designs. From tweaking text to adding vibrant effects and colors, the possibilities are limitless. The integration of Coloreel's cutting-edge technology with Tajima's embroidery machines ensures a smooth and efficient workflow, revolutionizing in-store embroidery services and online shopping experiences.
Attendees at Salon C!Print in Lyon, from February 6-8, will have an exclusive opportunity to witness this game-changing solution in action. Visitors to Tajima Europe's booth (2P20) can partake in live demonstrations, personalizing caps with flags and names of their choosing.
Mattias Nordin, SVP Product Management at Coloreel, emphasizes the software's transformative potential: "This collaboration signals a paradigm shift in automated personalization, not only for our industry but for the entire embroidery sector. Pulse ID represents a monumental advancement, poised to reshape how we approach personalized embroidery across physical and digital retail landscapes."
The Fashion Pact, a heavyweight alliance of fashion giants united under the banner of sustainability, has released its ‘Unlock’ report, a roadmap for a climate-friendly future for cotton. But instead of a resounding chorus of applause, the report has been met with a mixed bag of reactions, with some industry players applauding the ambition while raising concerns about methodology and impact.
The Report
Their mission: incentivize farmers to adopt regenerative practices that heal the soil, boost biodiversity, and slash carbon emissions. This not only benefits the environment but also allows brands to make credible claims about reducing their Scope 3 emissions (those occurring outside their direct control).
However, the pilot phase in India and the US revealed some challenges. Smallholder farmers, the backbone of cotton production, often lack the resources and expertise to precisely quantify their emissions. This creates hurdles in verifying their impact and ensuring fair compensation. Additionally, double-counting emissions becomes a risk if farmers already participate in other improvement programs. Finally, robust inventory accounting in developing countries presents difficulties due to limitations in monitoring and traceability.
Despite these hurdles, ‘Unlock’ represents a crucial step towards a greener future for cotton. By addressing these challenges through collaboration and innovative solutions, the project has the potential to:
Empower farmers: Provide smallholders with the tools and support they need to measure their impact and access fair rewards for adopting sustainable practices.
Boost transparency: Develop robust accounting methods that ensure credible emission reduction claims by brands.
Bridge the gap: Facilitate connections between farmers and brands, creating a direct line of impact and shared value.
Unlock proposes a three-pronged attack: scaling up regenerative agriculture practices that nurture soil health and biodiversity, investing in circularity solutions like recycled cotton and innovative bio-materials, and finally, boosting transparency and traceability across the cotton supply chain. While the ambition is undeniable, questions linger.
Criticism on the methodology
However, critics point to the report's methodology, arguing that the calculations for potential emissions reductions lack transparency and independent verification. They worry that the focus on large-scale interventions might overlook the potential of smaller, community-driven initiatives that are often nimbler and more attuned to local contexts.
But the concerns don't stop there. Some industry players raise the specter of unintended consequences, questioning whether the project's impact will be equitably distributed across the cotton supply chain. Will farmers, particularly those in developing nations, truly benefit from this grand plan, or will the lion's share of the gains accrue to larger players?
The Fashion Pact, however, remains undeterred. They emphasize the importance of starting the conversation, highlighting that Unlock is just the first step in a long journey. They acknowledge the need for further refinement and transparency, welcoming feedback and promising to work with stakeholders to address concerns.
But the road ahead won't be easy. Striking a balance between ambition and practicality, ensuring transparency and inclusivity, and navigating the complex web of economic and social factors within the cotton industry – these are just some of the hurdles that the Fashion Pact must overcome to truly unlock a sustainable future for cotton.
Indeed ‘Unlock’ report may not be a silver bullet, but it has certainly sparked a necessary conversation. As the fashion industry grapples with its environmental footprint, the success of ‘Unlock’ could pave the way for a more sustainable future – but only if it listens to the concerns, addresses the gaps, and collaborates with all stakeholders along the way. The journey has just begun, and the world is watching.
The UK's largest and longest-serving retail show, Spring Fair, kicked off to much anticipation as thousands of retailers descended upon the event to explore new opportunities and rejuvenate their retail strategies. Among the attendees were an impressive array of retail giants and independent businesses, showcasing the vibrant diversity of the industry.
The opening day saw a multitude of retail businesses in attendance, ranging from household names like Warner Bros, Aldi UK, and Target Global to niche players such as Toy Barnhaus and Denby Retail. Notably, the presence of renowned brands like Disney, Marvel, and Barbie added to the allure of the event, offering attendees a glimpse into the latest trends and innovations shaping the retail landscape.
Expansion and Global Reach
This year's edition of Spring Fair boasted over 1000 quality brands, marking a significant increase from previous years. With 120 more exhibitors than the previous edition, including over 200 exclusive participants and 450 debutants, the event underscored its growing global influence. Moreover, the surge in international brands further highlighted Spring Fair's expanding footprint on the global stage.
Exhibitors expressed optimism and enthusiasm on the opening day, citing a steady stream of visitors and positive feedback on their offerings. Jonny Greves, Director of Lessey and Pavey, noted the vibrant atmosphere at the event and highlighted the positive reception received for their new product launches.
Inspiration and Insights
Spring Fair not only served as a platform for networking and business opportunities but also as a hub for knowledge and inspiration. Attendees were treated to a diverse lineup of speakers, seminars, and masterclasses, covering a wide range of topics relevant to the retail industry.
One of the highlights of the event was the Masterclass Studio, featuring sessions on emerging trends and technologies shaping the future of retail. From discussions on social commerce led by industry leaders from TikTok Shop to insights into the transformative potential of AI in retail operations, attendees gained valuable insights into staying ahead in an ever-evolving landscape.
Spring Fair also played host to the prestigious Gift Of The Year Awards, in collaboration with the Giftware Association. Industry leaders convened to judge the finalists across various categories, underscoring the event's role in recognizing and celebrating innovation within the retail sector.
Looking Ahead
As Spring Fair unfolds, attendees can expect a continuation of trend-setting showcases, insightful discussions, and networking opportunities. With a keynote talk on the retail landscape by Kris Hammer of the British Retail Consortium and a Licensing Masterclass led by Catrina O'Brien of Hasbro Inc. on the agenda for the upcoming days, the event promises to remain a focal point for industry professionals seeking to navigate the ever-changing retail landscape.
With its vibrant mix of brands, insightful sessions, and networking opportunities, Spring Fair continues to solidify its position as a premier event in the retail calendar. As the industry evolves, events like Spring Fair serve as invaluable platforms for retailers to stay informed, inspired, and connected in an ever-changing market landscape.
India's $172.3 billion textile and apparel industry (IMARC Group, 2022) is at a crossroads. The choice is between prioritizing garment manufacturing for the global market, a role where it currently holds 4 per cent market share as per Invest India, or focusing on creating domestic brands and capturing the hearts of Indian consumers, a market projected to reach $135 billion by 2025. Both strategies have their strength and weakness, and weaving a path to sustainable prosperity requires navigating this sartorial conundrum with strategic vision.
Production prowess, export enigmas
As the second-largest global producer of cotton, boasting 60 per cent cotton yarn spindles and 34 per cent of woven fabric looms, India has competitive edge in cost and scale. This prowess makes it a go-to supplier for global brands like H&M and Zara. “India's strength lies in its robust infrastructure, skilled workforce, and diverse raw material base,” points out Rahul Mehta, Chief Mentor of CMAI. "We can produce anything, from basic to high-end garments, at competitive prices."
However, over-reliance on exports is a double-edged sword. Fluctuations in global demand, as seen during the pandemic-induced 27 per cent slump, can wreak havoc. Additionally, the "production for others" model restricts brand recognition and higher margins.
Moving ahead with FTSs
Free Trade Agreements or FTAs aim to ease trade barriers between countries, often involving tariff reductions and simplified customs procedures. For India's export-heavy textile industry, FTAs are a powerful tool. For example, the recent Comprehensive Economic Partnership Agreement (CEPA) with the UAE eliminates tariffs on 96.4 per cent of Indian exports, boosting garment shipments by 30 per cent. "FTAs can open up new markets and reduce competition," says economist Aparna Sharma. "They can also give Indian exporters a level playing field by lowering tariffs compared to competitors." But FTAs are not a panacea. Complex negotiations, non-tariff barriers, and domestic sensitivities can limit their effectiveness. Critics also point to the potential loss of government revenue from reduced tariffs.
Growing domestic market an attraction
India's burgeoning domestic market, fueled by a rising middle class with a disposable income of $2,329 per annum as per Statista, presents a good alternative. The demand for high-quality, locally-inspired apparel is growing, creating a fertile ground for homegrown brands. "The Indian consumer is becoming increasingly brand-conscious and discerning," says Minakshi Agarwal, founder of a successful homegrown fashion brand. "There's a huge opportunity for domestic brands to cater to this evolving taste and capture a larger share of the pie." Indeed, success stories like Aditya Birla Fashion & Retail and Fabindia illustrate the viability of this approach. These companies have tapped into India's rich cultural heritage, offering contemporary yet rooted designs that resonate with domestic consumers.
However, the way forward is fraught with numerous challenges and opportunities. Counterfeiting, infrastructure bottlenecks, and a complex tax regime remain major bug bears. However, opportunities abound. Rising consciousness about ethical and sustainable fashion presents a new frontier for Indian brands.
Need to balance exports with domestic market
The answer lies not in a binary choice, but in a balanced approach. India must continue to leverage its production prowess while nurturing domestic brands. This can be achieved through various means. One way to go forward is by investing in R&D to create innovative and differentiated products for both the global market and domestic consumers. Skill development to enhance the workforce's ability to cater to the demands of both export and domestic markets is another important step to move ahead.
Then there are the government initiatives like incentives for domestic brands, creating an enabling environment for entrepreneurship, and negotiating FTAs that unlock new markets and minimize negative impacts.
India's textile and apparel industry stands at a crucial juncture. By embracing a balanced approach, maximizing production prowess while nurturing domestic brands, and strategically utilizing FTAs, it can move forward with sustainable growth. The onus lies not just on industry players but also on the government to create a supportive ecosystem that fuels both production and brand creation. Whether India becomes a garment factory for the world or a fashionista's paradise rests on its ability to navigate this critical juncture with strategic vision and nimble execution.
In January 2024, the latest ITMF Global Textile Industry Survey (GTIS) revealed a notable upturn in business sentiments, signaling a potential shift towards positive dynamics. Despite prior concerns, indicators for business situation and order intake displayed improvements, hinting at a promising trajectory for the industry.
Driven by favorable inflation rates, augmented real wages, and buoyant consumer sentiment in the USA, alongside anticipations of interest rate reductions, the business climate witnessed a significant uplift. Expectations for July 2024 surged to levels unseen since late 2021, fueled by enhanced order intakes and a brighter consumer demand outlook, despite persistent cost apprehensions.
While order intake displayed signs of recovery, experiencing marked upticks across various regions except East Asia, particularly in North & Central America and South America, concerns over weakening global demand within the textile value chain diminished. This shift in sentiment was underscored by a decrease in respondents citing weakening demand as a primary concern, reaching its lowest level since May 2023.
Moreover, despite the challenges posed by weakening demand, the industry witnessed a shift in response, with reduced rather than canceled orders—a departure from earlier pandemic trends. Additionally, inventory levels, deemed average by 57 per cent of participants, varied across regions, with South Americans reporting higher levels and garment producers noting the lowest, offering a nuanced perspective on prevailing market conditions.
Overall, the survey reflects a cautiously optimistic outlook for the textile industry, with signs of resilience and adaptability amidst evolving market dynamics.
