FW
India wants to sell cotton to the garment sector in Bangladesh, hoping that Bangladeshi buyers will be interested in importing the commodity at competitive prices. A number of buyers in Bangladesh are keen on purchasing Indian cotton. Bangladesh’s cotton imports touched a five-year high of 0.99 million tons from April 2014 to March 2015, against 0.89 million tons in the same period last fiscal. Vietnam also imported 28 per cent more fiber this year.
India has put Bangladesh and Vietnam in focus for its cotton exports as its perennial buyer, China, has become slow in cotton and yarn purchases from around the world. China’s cotton import has fallen by 47 per cent. As the cotton stock rose to a record 9.1 million tons in India, the public sector Cotton Corporation of India (CCI) is planning to float international tenders to sell cotton.
CCI will initially float a tender to sell 5000 to 10,000 bales. The first such tender will be floated to observe the acceptability of buyers for which norms and modalities are currently being worked out. On achieving success in this tender, CCI may float another tender with higher quantity with an overall target to sell 30,000 bales of cotton this year.
California in the US produces about 75 per cent of the premium jeans sold worldwide. But the state is in the middle of a long drought right now. And that’s a bit tricky for the state’s denim industry because getting that expensive, distressed vintage look is all about washing with water.
Some companies are now investing in waterless technologies as an alternate to washing and distressing denim with water. They are advising consumers to wash their jeans sparingly. Southern California produces 75 per cent of the high end denim in the US that’s sold around the world, making it the largest US fashion manufacturing hub.
The drought is having an impact on designs and manufacturing process of garments. Some companies are using ozone machines. These machines use ozone gas to get the stonewashed look without using water. The ozone machine can cut water use by as much as 50 per cent. Ozone machines are also used by denim brands to replace the bleach used to lighten denim.
So-called premium denim is used to make jeans costing anywhere upwards of 100 dollars sold by companies like 7 for All Mankind, True Religion and J. Brand. Repeated washing with stones, or bleaching and dyeing the denim, creates that ideal look.
Surat is the hub for manmade fabrics. Now it has become a hub for textile parks as well. In the last six years, around eight textile parks have become operational. Their yearly production of yarn, fabrics and garments is pegged at Rs 3,364 crores. These parks have generated direct and indirect employment opportunities for more than 21,000 people.
The Gujarat Eco Textile Park at Palsana leads in production with value of fabrics, shirting, saris, denim synthetic textiles pegged at Rs 1,396 crores per annum. Around 70 textile parks spread across 16 states have been approved as on March 2015 with a total cost of Rs 7,100 crores. Out of the 70 parks, 30 parks are functional—most of which are in Gujarat, Maharashtra and Tamil Nadu.
About 20 more textile parks have been sanctioned, with a focus on north-eastern states like Manipur, Meghalaya and Assam. The textile ministry provides a grant to the extent of 40 per cent of the cost of basic infrastructure, common facilities and factory buildings subject to a ceiling of Rs 40 crores for each park. The balance project cost is to be mobilized by the special purpose vehicle through equity and debt funding.
India's biggest power generator NTPC has a plan to create a 100 mw solar power capacity in spinning mills of Tamil Nadu. The plan is to take this to 500 mw. The country aims to build 15,000 mw of grid-connected solar capacity to raise dependence on solar energy to one lakh mw of output from the current 3,380 mw.
Although there is a substantial adoption of wind power by spinning mills, a larger number still dependen on grid purchases. Besides spinning, there are other nodes in the textile supply chain, such as weaving and garmenting, which would be willing to join the NTPC scheme.
The textile hub of Tamil Nadu boasts 47 per cent of the country's spinning capacity with 2.1 crore spindles. For a 25,000-spindle textile mill, the average power consumption a day works out around 40,000 units a day. A solar plant of about 2 mw capacity can meet this power requirement. Spinning mills have a requirement for about 100 mw, and a potential for 500 mw in the near term, entailing an investment potential of about Rs 2,750 crores.
NTPC is a power plant developer. Entrepreneurs in the southern textile belt feel the idea will solve the energy problem and also offer investors a long-term income.
www.ntpc.co.in/
Bangladesh’s garment exports to non-traditional markets have grown by 7 per cent year-on-year in the July to March period. Exports of other major products like jute increased 6.62 per cent. Exports of home textiles rose 3.47 per cent. Exports of leather goods declined 1.14 per cent.
As major markets like the US are showing positive signs, apparel exports from Bangladesh have risen, but needs to grow by 10 per cent every month in order to achieve the target $27 billion in the current fiscal year. Exports rose 7.43 per cent year-on-year in March. The figure takes the total export earnings so far in fiscal 2014-15 to $22.90 billion, up 2.98 per cent year-on-year.
The impact of political unrest would be seen three to four months later when exporters will get their payments, as garment makers bagged fewer than normal orders from retailers between January and March. The majority of Bangladesh’s production is destined for US and European markets, Bangladesh’s readymade garment industry now accounts for approximately 78 per cent of total exports, second only to China as the world’s largest apparel exporter.
However, Bangladesh has a long history of health and safety tragedies in garment and textile manufacturing.
The Cotton Textiles Export Promotion Council (Texprocil) has demanded the release of 50,000 cotton bales. It has asked the government to direct Cotton Corporation of India (CCI) to immediately start releasing the said number of bales per day for 100 days through e-auction to address the issue of cotton shortage.
“We have urged the government to instruct Cotton Corporation of India (CCI) to immediately start releasing at least 50,000 bales per day for a period of 100 days through E-auction directly to the actual users,” Texprocil Chairman R K Dalmia said in a statement.
For now, the cotton textiles industry is facing issues due to non-availability of adequate quantity of cotton on account of the ‘Stop-Go’ policy of the CCI in spite of holding high level of stock, he added, further stating that CCI has procured 86 lakh bales of cotton under the Minimum Support Price (MSP) during the current season to protect the interest of the farmers. Out of this, CCI has offloaded only three lakh bales of cotton so far and is presently releasing between only 3,000 to 5,000 bales per day as against a stock of around 83 lakh bales, which leading to steep rise in prices besides creating shortage of good quality cotton, which in turn is adversely affecting the exports of yarn, fabrics & made-ups.
www.texprocil.org
Groz-Beckert, the leading provider of industrial machine needles, will unveil latest innovations in needle solutions at the ShanghaiTex, a platform for the textile machinery for automated textile technological applications that will be held from June 15-18, in Shanghai, China.
In felting, Groz-Beckert will present needles for filtration felts. The range or products comprises numerous needle types with different barb sizes and shapes, as well as gauges and cross sections. With the model of a circular knitting machine made of acrylic glass, the knitting area will allow insights into the interaction of the individual components – Groz-Beckert needles, system parts, and cylinder. Fourteen knitting technologies as well as a unique gauge gradient on a segment of a cylinder from E10 to E50 will be showcased. Another central topic will be the improvement of productivity in the circular knitting process. Groz-Beckert will demonstrate how big the positive effects of minimal changes to the five key factors in the knitting process – machine speed, efficiency, needle lifetime and breakage rate as well as energy consumption can be.
In weaving, Groz-Beckert is full-range supplier both for high-quality weaving accessories and machines for weaving preparation. At the exhibition, Groz-Beckert will present its KnotMaster tying machine. The sewing area will highlight the Sewing5 comprehensive service concept that highlights supply, solutions, service, superiority and sustainability. In chain-stitch and lockstitch machines, the innovative needle geometry LoopControl allows formation of a perfect loop. The distinctively rounded needle protects the material and reduces the risk of needle breakage and point damage.
www.groz-beckert.com
After pre-feasibility studies gave thumbs-up to develop and industrial zone in Pakistan, China is said to contemplating over shifting part of its $300 billion textile industry to Pakistan, in near future. Sources point out the Industrial and Commercial Bank of China Limited, ICBC and Pakistani Habib Bank have already carried out studies to establish an industrial zone in Pakistan.
The study, carried out in areas like Gwadar, Pind Daden Khan and Bahawalpur in Pakistan, explored suitable places to develop an industrial zone spread across 5,000 acres. An official delegate from Pakistan, who recently visited China found out that the country is keen to establish factories in steel, cement and textiles sectors.
However, Chinese players have concerns over safety and compliance issues as well as other issues like availability of power and wanted to know how the Pakistani government will tackle such them to safeguard Chinese business in prevailing law and order situation in Pakistan.
www.icbc.com.cn
Agreeing for an extension of Technology Upgradation Fund Scheme (TUFS) following the demand of textile players, the Union government may re-introduce it with some changes. The aim is also to introduce a long term policy for at least 10 years, under the new textile policy, scheduled to be out by this month-end.
Under the revised policy, states where factories exist may have to fund the projects with the states’ share in central taxes increasing to 42 per cent from 32 per cent earlier. TUFS, implemented from April 1999, was introduced to catalyze investments in the textile and jute industry, with a five per cent interest reimbursement. The scheme was initially approved from April 1999 to March 2004, extended to 2007 with modifications and further restructured with effect from April 2011, to March 2012. The government started with a capital subsidy when it was introduced in 1999. Later, the mode of relief was changed to interest subvention. In 2012, the then commerce minister Anand Sharma announced its continuation for the 12th Plan period of 2012-17, with an outlay of Rs 11,900 crores. Of this, Rs 6,000 crores has been released so far.
As per data, the industry utilised Rs 12,383 crores against the budgetary allocation of Rs 13,785 crores during the 11th Plan. Restructured TUFS allocations did not prescribe sectoral ceilings for the spinning, powerloom and handloom sectors. Investments in spinning were Rs 34,347 crores and in the weaving sector, including powerlooms and handlooms, Rs 9,750 crores. Texmin.nic.in
After suffering heavily due to political unrest, manufacturer-exporters from Bangladesh are now initiating steps to increase exports. The efforts include sending business missions abroad and increasing dialogue with sourcing companies to recover their business losses.
The apparel apex body-BGMEA also held a meeting with buyers' forum, where more than 40 representatives of top global apparel buyers, brands and retailers participated. While the players assured buyers of improvement in the situation and smooth supply of products, even buyers expressed their willingness to increase sourcing from Bangladesh.
According to estimates, the country's largest foreign currency-earning sector has already suffered a 20-25 per cent production loss during the last three months' due to political unrest. Almost 35 garment factories have suffered losses worth Tk 1.81 billion from January 14 to February 19 due to the blockade, according to the BGMEA. Locally-made apparel export (woven and knit) witnessed a 3.18 per cent growth during the July-March period of the current fiscal year. Knit products failed to achieve the target by 5.58 per cent and woven by 3.89 per cent during the period, under review.
www.bgmea.com.bd
