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As many as 80 spinning mills in Pakistan have shifted to polyester and cotton blended fabrics from pure cotton fabrics.This has resulted in a reduced consumption of cotton yarn.
Imports of Indian yarn have increased as the production cost of cotton yarn in Pakistan is 16.5 per cent higher as compared to India. Besides, a sizeable quantity of cloth from Vietnam and China is also coming to Pakistan unchecked and thus badly affecting the local industry.
As many as 27 textile mills are for sale and a major portion of the machinery of these mills is being sold as scrap. It’s estimated that 200 out of the 1200 ginning factories will not become functional during the forthcoming cotton season.
Production of cotton could increase next year if the government ensures that the farmers get rates equal to international prices.
Meanwhile, with slow demand from spinners, cotton prices eased further.
Major deals on the ready counter that changed hands were: 600 bales from Kahnpur at Rs 7000 a maund, 800 bales from Rahim Yar Khan at Rs 7000, 200 bales from Pakpattan at Rs 6800, 1,600 bales from Haroon¬abad at Rs 7100, 1,400 bales from Alipur at Rs 6775, 756 bales from Jattoi at Rs 6800, 400 bales from Sanghar at Rs 6500 and 200 bales from Liaquatpur at Rs 7000.
Since there is a huge demand for laundry dryers in Korea, four years ago LG, the brand in the garment care electronics market, doubled the meeting lines for dryers at the plant.
This year, LG aims to beef up global presence of the Tromm brand, for the company’s garment-related home appliances. As of today, according to the official the annual capacity of the plant expanded from 500,000 units to 5 million through innovative efforts to improve the productivity.
LG has been eyeing on the expanding dryer market for the last 10 years also LG has been making the history of garment care systems since launching the country’s first washing machine in 1969 he says.
Certainly, sales of LG Tromm Dryers poured 10 folds as of April and the demand is still on the rise due to limited space for drying laundries and also the growing public concerns about worsening air quality at home. The company forecasts the total sales units of dryers here to reach 600,000 by the end of this year.
The company’s eventual goal is to offer total solutions for efficient and effective clothes management step by step from washing, drying to keeping clothes tidy. And the final step of clothes management would be a solution for folding the cleaned clothes, says Lyu.
The event, held by the MoIT and the European Trade Policy and Investment Support Project (MUTRAP), aimed to seek feedback on a draft plan on Vietnam’s industrial restructuring for 2017-2020.
Le Tien Truong, General Director of the Vietnam National Textile and Garment Group, says that many data on the textile and garment industry in the draft are incorrect such as labour productivity, added value or import. Therefore, the plan’s reliability remains modest and it needs overhauling.
The plan says labour productivity must be raised by 5 percent to improve competitiveness but it is simply a target. The plan does not mention any processes to realise that target.
Meanwhile, Vietnam currently ranks fifth among the countries with highest labour productivity in fibre and textile production. It follows China in terms of labour productivity in garment manufacturing.
Nguyen Tue Anh, Deputy Director of the Central Institute for Economic Management, stated the MoIT’s plan needs to further clarify the bottlenecks and their causes in the development of industries so as to devise effective solutions.
Director General of the MoIT’s Planning Department Duong Duy Hung confessed that it is necessary to have a clearer plan which must point out major bottlenecks and detail restructuring processes in order to focus resources on right areas, thus creating more substantive improvements.
Industrial production value in Vietnam has surged by nearly 3.5 times it makes up about 31-32 percent of the country’s GDP, according to the MoIT.In recent years, electronics, textile-garment and footwear have become key exports, accounting for over 60 percent of the country’s total export revenue. However, MoIT Deputy Minister Cao Quoc Hung commented that, the country still ranks 101st among 143 countries in terms of the per capita added value in processing and manufacturing industries. Its industrial labour productivity is still outpaced by developed nations and other countries in the region. This is a worrying problem when Vietnam is now just in the initial stage of industrialization and so the draft plan on industrial restructuring has been built to promote substantive industrial restructuring, he noted.
The area under cotton globally is likely to expand by five per cent in the 2017-18 season.
In India, cotton area is forecast to increase by seven per cent as farmers are encouraged by better returns due to high cotton prices and improved yields in 2016-17. Production could increase by three per cent.
In China, cotton area may expand by three per cent due to the stable cotton policy and high cotton prices. Production in China is expected to rise by one per cent, the first increase in five seasons.
Similarly, harvested cotton area in the United States is forecast to expand by 12 per cent and production could grow by eight per cent.
Unlike the other top cotton producers, area in Uzbekistan is expected to contract by four per cent in accordance with government plans to reduce areas where yields are low, and use them for other agricultural products. However plentiful soil moisture may improve the average yield by one per cent. Uzbekistan’s cotton production is projected to decline by two per cent.
World cotton mill use is expected to surpass world production for the third consecutive season. World consumption is projected to increase by two per cent.
Yiwu Tex will be held in China, June 13 to 15, 2017.Top-notch knitting and hosiery enterprises will present their technology and production equipment.
Among these are Zhejiang Yexiao and Hefei Opek. Zhejiang Yexiao is a knitting machinery product development and manufacturing enterprise. Hefei Opek is a fully computerized jacquard hat and scarf knitting machine manufacturer.
Zhejiang Yexiao will mainly display computerized hosiery machines and flat knitting machines, along with its star product, the 6F Computer Terry / Flat Machine, which is capable of weaving one main color and five secondary colors for each line and in which each sock can be weaved in thirteen colors. It is also capable of weaving 3D pattern socks and is equipped with a stepping motor to regulate tension of yarns and weaving density.
Hefei Opek will showcase the Opek 365 H-Speed Hat and Scarf Knitting Machine, which features advanced technology from Germany, fast weaving of various complex patterns and colors with high precision, and supports customized knitting based on product design features.
Other exhibitors participating in the show are Santoni (Italy), Yamagen (Hong Kong), Groz-Beckert (Germany).
In addition to the Functional Knitting Machinery Zone, Yiwu Tex 2017 will also feature the Smart Apparel Machinery Zone and the Digital Printing Machinery Zone.
One of the world’s largest industrial thread manufacturer and a major players in the Americas textile crafts market Coats, will be entering FTSE 250. FTSE Russell, the global index provider, confirms that Coats has met the necessary standards and will enter the FTSE 250 with effect from Monday 19 June.
Being the third largest company in the world, Coats was established in the year 1935, which was a founding member of the FT 30 index. The company has undergone significant corporate change in recent years in order to help reach the strategic objective of entering the FTSE 250. It was initially owned by the Guinness Peat Group to listed status in February 2015.
In June 2016, the company delisted from both the Australian and New Zealand stock exchanges. This helped concentrate trading volumes on the UK market and also supported the repositioning of Coats as a UK headquartered, global industrial manufacturing business. In December 2016, the UK Pensions Regulator confirmed it would cease regulatory action for two pension’s schemes following Coats signing heads of terms with the Trustees. At present Coats announced its intention to return to the dividend list.
Other steps in the corporate transformation of Coats include the appointment of Rajiv Sharma as Group Chief Executive, January 2017; the appointment of Simon Boddie as Chief Financial Officer, July 2016; and the completion of three acquisitions. In May 2015, it acquired GSD, a UK based supplier of management solutions that analyze time, cost and production capability in the sewn products sector. In June 2016 it acquired Fast React Systems, which provides software solutions and expertise to improve the operational efficiency of manufacturers, sourcing companies and retailers in apparel and footwear sector.
Coats acquired Gotex in June 2016, a Spanish based company which designs and manufactures high performance fibres, yarns and tapes used in various sectors. These acquisitions have proved highly successful with the companies each outperforming their post-acquisition targets.
Rajiv Sharma, Group Chief Executive, Coats, commented on this saying that this is excellent news for the company’s employees, shareholders and customers and is the culmination of an intense period of corporate transformation. He thanks 19,000 employees for delivering strong operational results.
At the Annual General Meeting of Li & Fung held on June 1, 2017, a poll was demanded by the chairman for voting on all proposed ordinary resolutions as set out in the Notice of AGM dated April 28, 2017.
The company’s share registrar in Hong Kong, Tricor Abacus, was appointed as the scrutineer at the AGM for the purpose of vote-taking.
The chairman is pleased to announce that all resolutions were duly passed at the AGM and the voting details were as follows:
As at May 25, 2017, i.e. the record date of AGM, the total number of issued shares in the company was 8,415,447,306 shares, which was the total number of shares entitling the holders to attend and vote for or against the resolutions at the AGM.
There was no restriction on any shareholders casting votes on any of the resolutions at the AGM.
There was no share of the company entitling the holders to attend and abstain from voting in favour of the resolutions at the AGM as set out in Rule 13.40 of the Rules Governing the Listing Securities on The Stock Exchange of Hong Kong and no shareholder of the company was required to abstain from voting at the AGM under the Listing Rules.
The Cotton Textiles Export Promotion Council (Texprocil) has urged the government to continue with the Rebate of State Levies (ROSL) scheme for three years as committed even under the GST regime as there are still many state taxes/levies which are not subsumed under the GST.
The ROSL scheme was announced in December 2016 for the made-ups sector for three years.
The ROSL rates were announced and were made effective from March 23, 2017. The objective of the scheme is to provide rebate of state levies consisting of state VAT/CST on inputs including packaging, fuel, duty on electricity generation and duties and charges on purchase of grid power, as accumulated through the stages of production from yarn to finished made-ups.
Many leading companies manufacturing made-ups are reportedly drawing up plans for investments in this sector after the scheme has been announced.
The ROSL scheme is expected to lead to an increase in exports of made-ups articles which in turn will create more employment.
Texprocil says any increase in the exports of made-ups will create additional employment in the entire value chain such as spinning and weaving besides the made-ups sector especially in the rural areas and for women.
After the package was announced, between July 2016 and March 2017 garment exports increased to 13.47 billion dollars as against 12.37 billion dollars during the same period the preceding year.
According to the reports the Global sales of personal luxury goods will grow by expected 2-4 percent at constant exchange rates in 2017, as higher spending in Europe and China outpace weakness in the United States and Southeast Asia.
The study by consultancy group Bain and Italian luxury industry association Altagamma showed that in the year 2017, a total revenue in the sector that includes watches, jewelry, clothes, shoes and leather goods will rise to 254 billion-259 billion euros from 249 billion euros in 2016.
In October, Bain had forecast 2017 growth of 1-2 percent for the luxury sector, but the industry managed to grow 4 percent year-on-year in the first quarter of 2017.Claudia D'Arpizio, Bain partner and lead author of the study sated that after a difficult 2016, the first quarter of 2017 brought some relief to the luxury industry. Bain does not name specific companies, but in the first quarter of 2017 luxury giants LVMH Kering and Hermes all posted strong results.
Federica Levato who is Bain partner recently stated that it is a healthier growth than before. So we have revised our market forecast for this year and few players who are doing well are really outperforming.
Europe, which is starting to see tourists returning, is expected to be the fastest growing market for luxury goods this year, with sales seen up 7-9 percent.Bright spots were Spain, seen as a relatively safe destination, and Britain, rendered more affordable to tourists after a post-Brexit slump in sterling, while mainland China was also recovering with 6-8 percent growth, said the report. According to Bain sales in the rest of Asia could shrink 2-4 percent in 2017.
As per Bain report The United States, major luxury goods market, is also set to underperform, with a strong dollar and uncertainty about the policies of President Donald Trump expected to create a challenging environment.The study added that those born after 1995, will represent 45 percent of overall luxury consumption.
Mavi Giyim's one of the Turkish fashion retailer initial public offering (IPO) is seen priced at 43 to 51 lira per share, valuing the jeans maker at up to 2.5 billion lira ($700 million. Bids were to be collected on June 8-9 and trading in the shares was expected to begin on June 15.Mavi announced two weeks ago its plans for the listing on Istanbul's stock exchange.
Since its establishment in Istanbul in 1991, Mavi has grown into one of Turkey's best known clothing brands abroad, with a jeans range that includes styles including the Relaxed boyfriend" and the "Myles".
Its IPO is seen as a test of international demand for Turkish equities, after a coup attempt last year and a widespread crackdown that has seen more than 100,000 people sacked from their jobs and tens of thousands arrested.
According to Thomson Reuters data the Istanbul Stock Exchange has seen a sharp decline in listings: $14.3 million have been raised in IPOs in this year as compared with $119.9 million in the same period last year.
Goldman Sachs is acting as global coordinator and, together with Bank of America Corp's Merrill Lynch, as joint international bookrunners. Turkey's Is Yatirim is acting as domestic coordinator and bookrunner for the global offering.
