FW
Les Miller is to be promoted as the CEO of American & Efird (A&E), while the current CEO, Fred Jackson is to retire and would be elevated as non-executive chairman of A&E's Board of Directors. A&E made the announcement recently and both would step into their new roles from September 28, 2015.
Since almost two decades, Fred Jackson has acted as the CEO of A&E and achieved tremendous growth. A&E turned into a global supplier of premium thread under Jackson’s vision and leadership, achieving record revenues, and strengthening the company's culture of continuous improvement and focus on safety and sustainability. Besides, three transformative acquisitions reached completion successfully in China, Bangladesh, and Sri Lanka. Also, Gütermann, which is the fourth largest company in the global thread industry, was an extremely accretive acquisition under Jackson’s leadership. A&E thus, was able to expand its footprint, diversify its end-markets, and enhance its ability to serve customers globally.
Since February 2008, Les Miller has served as Chief Operating Officer and led A&E Global Sales as Senior Vice President. A&E believes that Miller embodies the company’s core values and possesses the skills and experience to successfully lead the company into the future.
The Trading Corporation of Pakistan (TCP) has received a poor response in the fourth cotton tender as only two bids were submitted for procurement of 4,600 bales against the offered quantity of 88,600 bales. The state-run grain trader is facing difficulties in offloading cotton, procured on federal government directives during the last season to support farmers and stabilise prices in the domestic market. So far, cumulatively, TCP has conducted four tenders for the sale of 95,400 cotton bales of which two tenders were scrapped by the state-run grain trader as bids were lower than the reserve price.
Some 10,800 cotton bales have been sold through the remaining two tenders. In response to the fourth tender, opened on August 31, 2015, only two parties participated and submitted five offers for procurement of 4,600 cotton bales against the offered quantity of 88,600 bales.
TCP is likely to issue a fresh tender for the sale of the remaining 84,600 cotton bales as any delay in the sale of the commodity will increase losses. In November last year, TCP procured some 95,400 bales from ginners. However, presently it is compelled to offload these stocks at lower prices due to the lower price trend in domestic and international markets. The Federal government has pledged to pay the price difference in procurement and sale of the commodity.
For nearly two months China has been having daily auctions of its huge cotton reserves. But only a fraction of the stocks have been sold. The reason: high pricing and a slowing of economy. With sufficient inventory still available in the market and state auction prices relatively high, mills largely stayed away. Discounts would have risked pushing down market prices and led to increased costs for the government under a new subsidy scheme that has replaced stockpiling.
The poor auction results raise questions about how the government will get rid of the rest of its stock. Both yields and quality of China’s new crop, expected to start harvesting soon, are better than last year and prices are likely to be lower than the sales price set in the latest auctions. If prices remain relatively low, reserves would be under pressure to reduce their selling price in any future sales, increasing already substantial losses on the fiber that was bought at prices well above the market.
Beijing had been under pressure to release stocks to recover part of the cost accrued while building a stockpile of around 11 million tons of cotton under a now-abandoned state buying scheme to support farmers.
The Pakistan Cotton Ginners Association (PCGA), for the year 2015-16 is set to get a new chairman, Shehzad Ali Khan from Muzaffargarh district, who, it’s anticipated would be elected unopposed as no other candidate has filed their candidature for this slot. Haji Muhammad Akram, Chairman of Ginners Group thanked the ginners' community for reposing confidence into the Group and unopposed election of 15 members of the central executive of PCGA against the 15 vacant seats.
Sarfra Nazim Awan, Sheikh Muhammad Saeed, Aasim Saeed Sheikh, along with group member Khan and others, addressed a press conference recently. Khan said that PCGA Ginner Group have swept all vacant seats, 15 in all of Central Executive Committee (CEC consecutively for eight times in a row.
The other names are: Khawaja Muhammad Arshad Muzaffargarh, Chaudhry Qaiser Mehmood (Rahim Yar Khan), Qadar Bakhsh (Shujabad)Suhail Mehmood Haral(Lodhran), Malik Muhammad Naeem (Mianwali), Chaudhry Abdul Sattar (Bahawalpur), Malik Nazim Awan (Bahawalpur), Muhammad Arshad (Hasilpur), Girdari Lal (Sangarh) Fazal Elahi (Multan), Lado Mal (Sukkur) Bhagwan Das (Hyderabad), Sheikh Ashfaq Ahmed (Burewala), Chaudhry Muhammad Akbar (Chichawatni), and Ali Chauhan(Sahiwal).
Pakistan's investors, who set up textile manufacturing units in free trade zones of Tajikistan, can hire 40 per cent of the workforce from their home country. There are five free trade zones in Tajikistan with lucrative incentives, Pakistani investors can import textile machinery without any taxes or duties. Tajikistan, where 93 per cent of the land constitutes hilly areas with a population equal to that of Faisalabad, is a gateway to other Central Asian states. Tajikistan is rich in gas and electricity and will provide electricity to Pakistan.
Until 2007, trade between Pakistan and Tajikistan was restricted but now it is growing satisfactorily with room for a quantum jump in future. Tajikistan imports 60 to 70 per cent of its medicines from Pakistan. During the Soviet era, a big textile unit was set up in Tajikistan to cater to the huge demand from the Soviet Union. This unit has now become redundant, but new and small units are being established to meet the needs of the domestic market. Businessmen and industrialists from Pakistan have been invited to set up textile units in Tajikistan. Pakistan and Tajikistan aim to establish direct contacts in order to encourage trade and tap the potential between the two countries.
The Woolmark Company's stand at SpinExpo Shanghai will be showcasing ‘The Wool Lab Autumn/Winter 2016-17’ and latest innovations in Merino wool from September 1 to 3, 2015.
The company is focusing on three key pillars of innovation: touch, technique and texture. Examples of the three directions include warp-knit fabrics which extend the range of options for using Merino wool in sports, casualwear and business casuals and knitted denim with a choice of circular knit, seamless or flat-bed knitting, Merino Retract knitwear that looks like boiled wool but has the resilience and pilling performance of normal wool and Mottled Merino is a special yarn which has been created by randomly mixing untreated and anti-felt treated regions within the yarn to create a highly textured and mottled aspect after milling.
On September 2, The Woolmark Company is hosting two seminars in at the event venue. At 11am, The Wool Lab AW16/17 will be presented to attendees, showcasing a collection of inspirational themes to inspire and influence trends dedicated to the upcoming AW16/17 season. The Wool Lab is an innovative seasonal guide to the best wool fabrics and yarns in the world. It connects designers with manufacturers through technical skills, know-how and passion. At 2pm, the company will present a seminar on Merino innovations.
www.woolmark.com
Raw silk, which is imported from China, is becoming costlier thus, India’s silk fabric exporters are looking for incentives to remain competitive. They hope to meet commerce ministry officials to discuss the withdrawal of export incentives under the Foreign Trade Policy 2015-20. Members of the Silk Association of India say exporters could get a five per cent incentive on woven silk fabrics, which was applicable on exports to all countries under the previous Exim policy (2009-14). As per the new policy, export of silk fabrics made only on handloom is eligible for a five per cent incentive and it was lowered to two per cent for power looms.
Under the new policy, exports to one of the major silk markets are no longer incentivised, said Vikram Tantia, President of the Silk Association of India. East Asia, Africa, and Australia too are major markets for silk exports. Besides, several exporters using powerlooms are not eligible for incentives from states such as Karnataka, Bengal, UP, and Bihar.
Textile mills in Maharashtra are incurring losses to the tune of Rs 10-40 crores each as almost 50 co-operative textile mills are either sick, closed or under liquidation process. The government's share in their capital ranges from 80 per cent to 45 per cent. Maharashtra government may soon allow the mills to sell off excess land in their possession to save them from further losses. Earlier they were never permitted to do so despite repeated requests. The government is yet to decide whether there should be a cap on saleable land.
The closure of all ailing mills was suggested earlier by the Suresh Halwankar Committee, to cut losses. The Congress and NCP reproached the suggestion as a ‘deliberate attempt’ to devastate the cooperative sector. Chandrakant Dada Patil, Textile Minister said they believed this decision would help ailing mills to revive their business as the government has invested huge amounts in them. He added that if this move does not help, the government would have to step in.
Most ailing mills are in smaller cities and towns and not a single one has that much excess land, which could fetch Rs 30-40 crores. Therefore, experts have termed this plan as ‘useless’ and ‘impractical’.
The consultant for preparation of a Detailed Project Report was appointed by the government said M Ashokan, Corporation Commissioner. He added that the focus in Tirupur would be on underground sewerage scheme, improvement of water supply, e-governance, health and sanitation, increasing green cover and transportation, and some other parameters. Infrastructure needs would be minutely studied by the DPR before floating the final plan, said Corporation officials. Tirupur is going to be included under the Smart City project, as it is envisaged that it would propel the prowess of the knitwear industry, both in the global and the domestic markets. Industrialists in Tirupur knitwear cluster have welcomed this move.
The cluster is looking at Rs one lakh crore in turnover through garments sales, both to foreign and domestic markets by 2020, says M Veluswamy, Chairman of Confederation of Indian Industry (Tirupur district council). He added that infrastructure needs to grow exponentially to attain this, thus the funding for development of Tirupur as a ‘Smart City’ will be helpful.
The main requirements of the knit city include housing facilities for labourers, which could be constructed on a public-private partnership mode, ESI hospital for workers, development of ring roads to improve access to villages from where workers travel to the city and wifi facilities across the city. These were just some among others, cited by the knitwear entrepreneurs of Tirupur.
The Trading Corporation of Pakistan (TCP) has asked the Federal Board of Revenue (FBR) to clarify the rate of withholding tax on purchase of lint cotton under the prevailing laws, as the rate would have future implications for TCP if government intervenes in the market during the current season. The TCP has written to the FBR seeking clarification of withholding tax rate on purchase of ginned or lint cotton.
As per the government's directive TCP has purchased lint cotton from cotton factories located in different parts of the country and deducted income tax on the following rates, i.e. 4.5 per cent of the gross amount in case of non-corporate sellers and four per cent of the gross amount in case of corporate sellers.
TCP’s tax consultant has stated that withholding tax will be applicable on purchase of ginned cotton under section 153(1)(b) of the Income Tax Ordinance, 2001, and not under clause 1(a) of division III of part III of the first schedule of the income Tax Ordinance, 2001. However, Pakistan’s cotton ginners do not agree with this rate. They say ginned or lint cotton is covered under the lower rate and, according to the Income Tax Ordinance, 2001, withholding rate on ginned or lint cotton is one per cent.
