FW
"The Indian textile industry must move from being a low cost commodity exporter of fibre and yarn that has facilitated China to increase its share in global export market to 39 per cent. The country needs to be a net exporter of finished goods rather than commodity intermediaries to overcome its share of 5 per cent in the global export market. The industry needs to modernise and scale up capacities that would overcome the low manufacturing inefficiencies and be globally competitive."
The Indian textile industry must move from being a low cost commodity exporter of fibre and yarn that has facilitated China to increase its share in global export market to 39 per cent. The country needs to be a net exporter of finished goods rather than commodity intermediaries to overcome its share of 5 per cent in the global export market. The industry needs to modernise and scale up capacities that would overcome the low manufacturing inefficiencies and be globally competitive.
Maintaining competitive edge
Maintaining a competitive edge with rising costs, among other factors of production is gaining significance. C S Nopany, Chairman, Sutlej Textiles and Industries, recently pointed out there has been a sharp increase in cost of raw materials such as cotton and man-made fibres globally. Currently, cotton fibre, yarn and fabrics account for 32 per cent of India's exports, which are lower in value. Garments at 39 per cent, man-made textiles at 14 per cent, handlooms and handicrafts at 11 per cent and the rest at 4 per cent, account for the balance textile exports from India.
Government estimates, the sector needs $180-200 billion investment for achieving the desired production scale by 2024-25, which remains a formidable challenge. The essential prerequisites for getting investments on the scale required, would be to ensure ready availability of developed land for mega textile parks with adequate infrastructure, skilled manpower and easy connectivity to ports.
Investments also need to be supported by additional productive and skilled manpower; it's the only way to achieve global competitiveness and to derive the full benefit of demographic and wage advantage that India would clearly have over the next decade. So far, investment in improving skills and productivity of the workforce, by both the private sector as well as the government in alliance, is not yet at par.
Encapsulating growth
The objective should be to achieve average per man-hour, per machine output in terms of quality and quantity of levels prevailing in China over the next three to five years with the PM 's vision of Make in India with `Zero Defect, Zero Effect' at each level of the value chain. Dipali Goenka, CEO & Joint MD, Welspun India feels Make in India has been a huge success in attracting investments and augmenting manufacturing that has resulted in job creation across sectors. This has also created a huge requirement for skilled manpower. The government's initiative to impart skills to the youth, making them employable, is bound to have a multiplier effect and will propel India to the top position in the emerging global economic order.
The European Union and US account for 50 per cent of India's exports hence, there is a need to diversify to new geographies of Japan, China, Brazil and Russia. As Ashok Rajani, Chairman, Apparel Export Promotion Council point out India's ready-made garment exports during April-December of 2016 witnessed a decline of 0.2 per cent compared to the same period in the previous financial year. The market sentiments have been affected due to delays in the rollout of the special package, which was announced for the apparel sector in June 2016 and stagnation in the Europe and US markets.
Value adding enablers
To ensure export destinations are not limited to certain countries, there is a need to undertake an extensive study for a product-mix that can be tailor-made for each major market. It can be executed with a country-specific strategy conducted jointly with the ministry of textiles. From a taxation perspective, the entire value chain of textiles and apparel sector so far is under a differential tax regime that has created needless distortions. However, this will be addressed by the implementation of GST, which will likely create a level playing field for the entire value chain, with the tax slab hopefully being at the lowest rate.
The remaining challenges include certification for genuine handloom and khadi products that would facilitate in adding credibility to the respective brands in the domestic and international market. Finally, the credit availability from the banking system should be made available with longer tenures of eight years as compared to the current five year period, as the life of the machinery is over 20 years, putting considerable pressure on the business in the form of higher annual repayment cost.
Invista has introduced a new high-strength Cordura, made with the company’s T420HT fiber technology. This is the strongest nylon 6.6 fiber Invista has produced. Cordura, which resists abrasions, tears and scuffs—is used for everything from luggage, upholstery and backpacks to footwear, military equipment, tactical wear, work wear and performance apparel.
In addition to Cordura T420HT, Invista will introduce high-strength Cordura denim and Cordura combat wool. The company is working with Cone Denim to introduce Cordura selvage denim and with Artistic Milliners on Cordura combat wool. Invista has also updated its partnership with Woolrich to introduce a new collection of Wool-Dura, which includes both Cordura and Woolrich wool.
Cordura Nyco, a nylon-cotton blend based on the T420HT high-tenacity fiber, is undergoing wear trials for military applications. The durable but lightweight fabrics, including Cordura Nyco Extreme and Cordura Nyco Tactical fabrics, can be used for military uniforms, outdoor apparel and work wear.
This year, Cordura is celebrating its 50th anniversary. The company will launch several new fiber and fabric innovations, new applications, and collaborations. Invista is based in the US. A retro-futuristic collection will include garments made with Cordura combat wool, Cordura denim/tencel blends and Schoeller change and cerasphere coating technologies.
Surat International Textile Expo (SITEX) will be held from tomorrow February 25 to 27, 2017. The aim is to encourage and develop the textile sector in Surat and the south Gujarat region. Around 175 exhibitors from across the country including Ludhiana, Punjab, Maharashtra etc. are participating. But around 80 per cent of textile machinery manufacturers participating in SITEX are from Surat.
Surat’s manmade fabric industry contributes around 40 per cent of the synthetic fabric demand. The exhibition aims to encourage power loom owners to upgrade their machines in order to match international standards and to provide an opportunity to weavers to upgrade their units. The focus is to introduce state-of-the-art textile machinery for the Surat cluster and present Surat as a brand.
The event will have a series of seminars, fashion shows and buyer-seller meets. It’s organized by the Southern Gujarat Chamber of Commerce and Industry. The focus will be on the weaving sector and the introduction of circular knitting machines used by Tirupur, India’s largest garmenting center.
Surat’s contribution to the export of manmade fabrics and garments is negligible. On the other hand, Tirupur, having just 20,000 circular knitting machines, exports fabrics and garment worth Rs 25,000 crores a year.
FESPA 2017 will take place in Germany from May 8 to 12, 2017. This expo will feature the full spectrum of screen, digital and textile print. Suppliers of technology and consumables for screen print have the opportunity to exhibit at FESPA every year, giving them a regular platform to share their ideas and innovations.
Berlin was the host city for FESPA 2007, one of the most memorable editions in the event’s 50-year history, while Munich has welcomed FESPA on four previous occasions, in 1999, 2005, 2010 and 2014, and is a favorite host city with both exhibitors and visitors.
Movement of FESPA exhibitions between host cities improves accessibility for visitors from across Europe and ensures that the geographical make-up of the audience changes annually, helping exhibitors to engage with the widest possible audience of customers and prospects.
The 2017 event is expected to appeal particularly to visitors from northern and central Germany, while also attracting substantial delegations from the Benelux and Nordic regions. Berlin 2007 expanded FESPA’s audience from northern Germany and north-eastern Europe, while FESPA events in Munich typically draw enlarged delegate groups from central Europe and Italy.
FESPA’s global print expo in Europe is complemented by a program of tailored regional exhibitions in Asia, Eurasia, central and south America and Africa, facilitating access to FESPA events for print service providers in these developing markets.
Quantities of Australian wool at auction are starting to show signs of waning. Just over 42,000 bales are expected to be auctioned next week. Prices are expected to remain buoyant, with bidding this week dominated by traders, rather than the market’s large Chinese indent buyers. Finer micron groups are appreciating at a faster rate than their broader cousins, causing the price differentials between microns to further widen.
Better types continue to attract good support and maintain their large premiums over lower spec types. Renewed interest in crossbred market continued this week with most types and descriptions adding a further 10 to 20 cents to the gains recorded last week and 26 to 28 micron posted the largest rises.
The oddment market also had another solid week, with 20 to 30 cent rises in locks and crutchings helping push all three carding indicators to average rises of over 15 cents. The merino fleece market appeared to change track slightly this week as buyers’ attention moved more to the broader 18.5 to 21 micron area. With superfine wools finer than 18.5 micron now 200 cents and more dearer than their broader counterparts, interest from the predominantly Chinese traders turned to what looked like a more advantageously priced type.
During the July-January period of 2016-17 Pakistan’s exports of bed wear rose 5.07 per cent and exports of readymade garments rose 4.17 per cent. Knitwear exports remained almost flat during this period. Machinery imports soared 42.36 per cent. Power generation machinery imports saw a 90 per cent increase over the previous year. Imports of electric machinery and appliances rose 16.14 per cent. In January, machinery imports increased 50.17 per cent over the same month a year ago and rose 14.24 per cent over December 2016.
In July-January, imports continued to surge and were up 13.6 per cent. Import bill of machinery was the heaviest, accounting for almost a quarter of gross imports during the seven months. Imports of fertiliser, insecticides and other agricultural inputs remained flat during the seven-month period.
The textile sector’s export revenue was down 1.54 per cent over the previous fiscal year. In January, textile exports increased 2.73 per cent over the preceding month but decreased 1.3 per cent over the same month a year earlier. The textile industry accounts for more than half of the annual exports from Pakistan. An incentive package has been prepared for export-oriented sectors. The package comprises withdrawal and concessions on customs duty and sales tax on import of cotton and machinery.
Worldwide, the organic personal care market will grow at nearly 10 per cent a year to 2019. There has been a 26 per cent growth in clothing products, a 32 per cent increase in home textiles, and a five per cent growth in baby wear. This is a positive time for organic - from cotton to wool and all other textiles. Organic supply chains are also strengthening and the number of Global Organic Textiles Standard (GOTS) certified facilities increased by four per cent in 2016, the fourth year of growth.
Consumer concerns around pesticide residues are driving interest in organic personal care products, from cotton wool to feminine hygiene and nappies. More and more consumers in the UK are recognising the importance of organic when making purchasing decisions. Overall, the UK organic market is evolving from food into lifestyle and in future there may be greater crossover between people who buy organic food and non-food items, including textiles and health and beauty products.
At the moment, not enough consumers understand the benefits of organic, but when they do, they are willing to pay more. It is essential to come up with one simple definition of organic which can be used across the market. Also, while consumers have a tendency to say one thing, they do another when it comes to making ethical purchasing decisions.
Myanmar has emerged as an up-and-coming force in the Southeast Asian textile sourcing market space. The country is catching the attention of investors around the globe. A number of large foreign corporations are interested in manufacturing in Myanmar.
In mid-2014, Gap became the first US Corporation to start textile production in Myanmar following the lifting of American sanctions. Within a year, the company tripled the number of products it was manufacturing in Myanmar.
The country has a Five Year plan to boost textile and garment exports. Economic development has been further supported by internal change. New financial laws are reshaping the economy and increasing mobile banking. Additionally, 2016 saw the lifting of all remaining economic trading sanctions between Myanmar and the US after more than two decades. The country saw historic growth in 2016 and exported more than a billion dollars in garments and tactile goods.
As a most favored nation WTO member, Myanmar boasts low tariff rates for exporting countries that are also WTO members. These positive changes have been associated with a rise in foreign direct investments.
With a competitive minimum wage, GSP trade privileges in the EU market and a strategic location at the China-India intersection, Myanmar is becoming increasingly popular among manufacturing companies burdened by the upward cost spiral in China.
Malaysia’s textile and apparel exports increased 10 per cent in the first half of 2016 compared to the same period the previous year. Growth is mainly driven by increasing demand in global market for high quality textiles and clothing from Malaysia, as well as the rising purchasing power in major importing countries. The country’s textile and apparel industry is targeting higher end of the global value chain with diversified production of higher value-added products. The industry has also implemented latest automation and technology in its manufacturing and distribution, while actively seeking business collaboration with foreign companies and undertaking new R&D activities to further strengthen its competitiveness in the global market.
The textile and apparel industry currently employs over 68,000 workers across more than 970 registered garment and textile factories in the country, of which over 400 are making readymade garments, and the rest are operating in major sub-sectors including polymerisation, spinning, weaving, knitting and wet processing, and textile accessories.
Currently, the US, Japan, China, Singapore and Turkey are Malaysia’s top five export destinations. The US remains the largest export market for Malaysian textile products, accounting for over 18 per cent of the industry’s total textile and apparel exports every year.
Stenters made by Monforts are used by textile finishing plants. The automated 72 meter long finishing machine includes a washing machine integrated within the stenter.
Monforts is a finishing machinery specialist from Germany.The seven-chamber stenter is equipped with a horizontal chain, a padder and an integrated weft straightener.
Using this equipment, finishing plants do warp knits for digital printing in the soft signage market as well as for producing garments, automotive interiors and technical textiles.
The substrates used are 100 per cent polyester warp knits, which have become common place as the industry moves away from PVC coatings due to more stringent environmental regulations. These substrates allow excellent take-up of inks and provide vibrant colors and clear images. The resulting warp knitted fabric construction also has the advantage of elasticity, which is a plus in terms of flexibility for installers.
An integrated heat recovery system is fitted as standard on all new Montex stenters.
The stenter has been specifically designed to meet demands of the technical textile and nonwoven industries, such as geotextiles, for finishing wider width fleece and fabrics. It is also equipped with the Monforts Twin Air system for individual adjustment of lower and upper nozzle pressures. For heavier weight fabrics, a supporting belt can be fitted between the upper and lower nozzles of the stenter for mark-free fabric transport through the stenter.
