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The potential of technical textiles in India remains largely untapped. But growing industrialisation, increasing access to medical care and huge infrastructure spending it expected to drive growth of technical textile segment. This is expected to boost the industry and help it grow at 20 per cent to touch Rs 1.58-lakh crore mark in the ongoing fiscal.
In the last couple of years, India has been growing at a fast pace in this sector with perceptible signs of expansion being observed in a few specialized segments, observed Textile Commissioner Kavita Gupta while speaking on the sidelines of Techtextil India Symposium 2016. She said that the Centre was giving financial support for growth of the industry and has already announced 15 per cent capital subsidy for investments in technical textiles under the Amended Technology Upgradation Fund Scheme.
Experts say the global technical textiles market is expected to reach $193.16 billion by 2022. Growth of key end-use industries such as agriculture, construction, packaging and automotive in BRICS nations is expected to remain a key driving factor for global technical textiles market. The Commissioner called for increasing spends on R&D in this particular sector that spends around 10-11 per cent on R&D at present and hopes to double the same in coming years.
The 6th edition of the two-day Techtextil India symposium 2016 brought the entire cross-section and stake-holders of the industry on a common platform as they share their knowledge about the global trends and developments, market potential, opportunities and future prospects of this segment.
As planning with vision towards 2030 is obsolete, the Vietnam Textile and Garment Association (VITAS) has asked the government to review and adjust development planning for the industry. Under the current plan, the industry’s export value was targeted to reach $20 billion by 2020 but the figure exceeded $27 billion last year and is expected to hit $31 billion this year. Right from 2010 to 2015, the industry had a stable growth of export value of 15 per cent per year.
Vietnam’s demographics that consists of a population structure with more than double the number of working age than dependents was advantageous for the expansion of the sector. The reason is that only then the Government can help the industry keep up with the country’s integration and make use of the abundant resources.
Deputy Minister of Industry and Trade, Hồ Thị Kim Thoa observed that global textile and garment producers were shifting their place of production to places that had a good labour force and lower production costs. He endorsed VITAS’ recommendation, saying that the industry should make changes to its planning as it was enjoying opportunities stemming from the country joining free trade agreements.
To help textile and garment firms take advantage of opportunities and overcome challenges brought by free trade agreements, the Association suggested the government should update development strategy that was approved by the then Prime Minister in 2008 and the ministry of industry and trade in 2014. VITAS has asked the government to create a development strategy to 2025 with a vision towards 2040. It also wants the government group textile and garment enterprises in concentrated industrial parks.
Currently, there are several textile and garment industrial zones in the northern provinces of Hưng Yên, Thái Bình and Nam Định and the southern province of Đồng Nai and Bình Dương, which cover a few hundred hectares each. VITAS suggested the government allow establishment of textile and garment industrial zones with 500-1,000 ha to draw domestic and foreign capital.
As China shad slowed down on its apparel export to the European Union (EU) and the United States (US), Vietnam has filled the vacuum with higher trade volume while Bangladesh failed to tap the full advantage.
An official data has revealed that Vietnam has posted higher growth in its apparel trade on the two western markets in recent months. On the other hand, Chinese clothing exports to the EU and the US faced almost a double-digit negative growth during the first half of the current calendar year.
Apparel exports from Bangladesh to the US in the first seven months of this year registered a 1.10 per cent growth while that of Vietnam registered a 3.15 per cent growth in the same period of 2015.
While Vietnam roped in $6.13 billion from the US market in January-July period this year, Bangladesh lagged far behind with $3.23 billion, according to a data of Otexa, an American research website. Though Vietnam's export to the EU market is significantly lower than Bangladesh's volume, its growth is higher.
Shipments of apparel products including knit and woven from Bangladesh to the EU stood at $5.8 billion in January-April this year against $5.32 billion registered in the same period last year. Vietnam's exports were worth $1.04 billion to EU in the first four months of this year posting an 11.2 per cent growth over the same period last year.
Interestingly, industry-insiders said that Bangladesh enjoys GSP in the EU while Vietnam does not. But the latter faces less tariff compared to Bangladesh in the US market.
China's apparel shipments to the EU declined to $9.07 billion from $10.15 billion during the period under review as the country's clothing export drooped by 10.57 per cent, according to data compiled by Texprocil India.
Similarly, Chinese exports to the US amounted to $14.94 billion-a decline by 6.4 per cent from $16 billion in January-July period of 2015.
"Zimbabwe’s cotton industry sees red as cotton production has hit all time low with estimated output falling below 30 000 tons this year. This has been the lowest yield since 1992, after the country faced serious drought. Yields will be significantly lower than 102 000 tons achieved during prior season and 352 000 tonnes, a record output achieved four seasons ago. It has prompted experts to be sceptical about the sector’s future sustainability."
Zimbabwe’s cotton industry sees red as cotton production has hit all time low with estimated output falling below 30 000 tons this year. This has been the lowest yield since 1992, after the country faced serious drought. Yields will be significantly lower than 102 000 tons achieved during prior season and 352 000 tonnes, a record output achieved four seasons ago. It has prompted experts to be sceptical about the sector’s future sustainability.
Once one of the top producer’s of cotton globally has now gone down with production level up to 10 per cent of normal volume. Experts believe, opening up the cotton sector to new players was the death knell for Zimbabwean cotton. Zimbabwe’s cotton sector was built around the Cottco inputs credit scheme, which started in 1992 and ensured that farmers received adequate funding, agronomic support and quality incentives resulting in 95 per cent of production coming through contract farming schemes. However, the contract scheme failed due to rampant side-marketing and ineffective government regulations. Hence, cotton production is no longer a profitable option under contract farming. Today, with low yields, side marketing and low inputs support cotton sector is facing dwindling production levels.
Challenges remain despite new policy measures
To infuse life into the sector, a new model for cotton production is almost imperative. Establishment of state controlled monopoly has been one such measure taken up by the government recently. The policy is expected to result in higher yields due to the supply of correct inputs package and agronomical support. Moreover, growth in overall yield is expected to drive viability and improve debt repayment. It will also reinstate seasonal pool price and quality bonus payments,, which will go a long in improving crop quality and sector viability, thereby enabling the country to regain its reputation for top quality.
In spite of correcting measures there are huge challenges for Zimbabwe in terms of international competitiveness due to cotton subsidies. Consequently, the country cannot compete on an equal footing with other global producers. This way, normal market forces cannot achieve competitiveness for the industry. As such, it is imperative that efficiencies are maximised through economies of scale arising from the contracting of a single operator in the mould of the former Cotton Marketing Board (CMB). This instantly resolves the challenge of side-marketing. The creation of a viable investment case enables a virtuous cycle of adequate input packages, improved grower viability, improved debt repayment, higher crop size, improved operational efficiencies and higher investment in the sector.
Subsidy and value addition to boost global rankings
Recently the government gave out free inputs worth $25 and has indicted similar schemes for this year. However, inputs subsidies may not be an effective policy intervention in the absence of a viable pricing incentive for the farmer. The rampant abuse of free inputs has been a major reason of failure for this scheme. In the absence of correct agronomic practices such as the right plant population and adherence to planting deadlines, inputs will not achieve the desired effect of reviving the industry. Processing of cotton into yarn, fabrics and garments represents the core industry for the country in terms of job creation and economic development. There is need, therefore, to craft policies which attract investment into the sector.
Ready-made garment exporters believe the government’s decision to do away with import duty on specialty man-made fabric used as inputs for exports can help them compete better with smaller countries such as Bangladesh and Vietnam. These countries have the dual advantage of low operating costs and preferential access to markets such as the European Union.
The Apparel Export Promotion Council (AEPC) will soon organise a nationwide drive to spread awareness about the new special advance authorisation scheme announced by the Centre last month for exporters to take advantage of it.
Just because of higher labour cost, absence of cluster forming and inability to attract women workforce to reduce labour costs, India has been losing to competitors like Bangladesh and Vietnam. Banking on trade agreements and low manufacturing overheads, these countries have started to pose a serious threat.
According to industry figures, India’s ready-made garments exports last year were worth $17.1 billion while Bangladesh’s garments exports in 2015-16 were valued at $28 billion. The government’s decision to allow duty-free import of specialty man-made fabric will help immensely in increasing Indian exporters’ competitive edge.
The additional benefit to exporters of high-end garments that use specialty fabric could roughly help offset 2-3 per cent import duties in the Western markets. Going by the fact that garment exporters from India pay on an average an import duty of five per cent in the EU when countries such as Bangladesh pay zero duty. In the US, the import duty on garments range from nine per cent to 20 per cent.
The garment industry in Los Angeles is currently going through a transition period. The tag “Made in China” is becoming more prevalent as minimum wage rises and domestic sewing and textile companies struggle to survive dwindling profit margins.
In comparison to rising expenses and costs to manufacture garments in Los Angeles, countries such as China apply lax legal policies in favor of businesses to produce more garments using fewer financial resources. As a result, many garment manufacturers that focus their business on quantity rather than quality in the wholesale market are now relying heavily toward foreign-based sewing and textile companies to keep their businesses afloat.
Unfortunately it is not all rosy for these garment manufacturers importing textiles from foreign companies. For one, most foreign textile companies do not guarantee copyright ownership of textiles and their designs. As a result, a number of garment manufacturers are being sued for copyright infringements and end up defending not just their claims, but also their retail customers’ claims pursuant to their indemnity agreements.
In an effort to circumvent any copyright issues, some domestic garment manufacturers have taken questionable measures to protect their business interests. The most common way has been to modify or change certain portions of the original textile design purchased from foreign textile companies to try to make it more original. In most instances, such revision efforts have not been successful where there has been substantially similar textile design that already had been registered with the copyright office.
Africa has become a strategic hub for China as a supplier of cheap raw materials. But the continent’s textile manufacturers and retailers continue to grapple with the colossal incursion of comparatively-cheap Chinese textiles and apparel. This competition has forced local firms to downsize or close. Textile industries have declined in output, lost market share, profits and over 75,000 jobs as a result of cheaper Chinese textiles on the local market.
As Africa embraces these cheap textile imports, jobs and revenues are exported along with social and economic ramifications. The country has recorded relatively-low levels of technological advancement and investment in capital. Consequently, the clothing and textile industry registers low productivity, slow turnaround time, and a weak value chain. In contrast, Chinese textile manufacturers have critically exploited their provisional assets such as cheap labor, technological upgrade, capital and skills training.
As severe poverty infests greater part of Africa, the low per capita purchasing power dictates that the demand for China’s low-price export goods will continue to scale-up. Chinese retailers have added a brutal fight to the already-severe situation by establishing local retail chains for their home manufacturers since Africa is one of the finest destinations for China’s finished products.
China remained by far the EU’s largest clothing supplier in the first three months of 2016 though a number of other countries gained market share. EU clothing imports from Bangladesh rose by 4.2 per cent in the whole of 2015 and were up by 8 per cent in the first three months of 2016. As a result, Bangladesh’s share of EU clothing imports reached 24.6 per cent. Imports from Cambodia shot up by 12.6 per cent in 2015 and were up by 17.7 per cent in the first three months of 2016. Imports from Pakistan rose by 6.5 per cent in 2015 and were up by 8.4 per cent in the first three months of 2016. And imports from Vietnam increased by 3.2 per cent in 2015 and were up by 1.6 per cent in the first three months of 2016.
The average price of EU clothing imports from China was the third lowest among the EU’s leading ten suppliers in 2015.
Productivity in China is superior to that enjoyed by its counterparts in south-east Asia and south Asia. China has a much better infrastructure than most other major clothing manufacturing countries in Asia. Its supply chain is more efficient and manufacturers in the country are able to guarantee timely delivery of their products.
British luxury house Burberry has been recognised by the Dow Jones as the leader in sustainability. This is the second time the UK Company is included in the report, reflecting its commitment to sustainable practices and the success of its corporate responsibility program. Burberry achieved the best scores of the industry in areas of customer relationship management, tax strategy, environmental reporting, overall environmental dimension, overall social dimension and stakeholder engagement.
The Dow Jones Sustainability Indices were launched in 1999, providing the first global sustainability benchmark. The metric is used as a tool by many investors to analyse the many economic, environmental and social factors that are relevant to a company’s success.
Burberry was founded in 1856 and is a leading luxury brand with a global business. The assortment covers a broad spectrum from classic trench coats to extravagant, innovative fashion collections. The range covers men’s wear, women’s wear, children’s wear, coats, dresses, shoes, accessories, bags, scarves, beauty and fragrance.
Burberry is best known for its trench coat. Devised for British troops fighting in World War I, it was fitted with epaulets and D-rings for grenades. Later, the double-breasted weather-beater was adapted for civilian wear, fitted with storm flaps and lined with the signature Burberry check.
The global output of digitally printed textile is growing at a considerable rate. While the share of digitally printed textile is insignificant, rising pressure for shipping products in a minimum possible time is likely to boost its share considerably by next year. This, as per a report of QYResearchReports.com, in turn will fuel demand for digital printing machine all over the world. The repository of the website titled ‘Global Textile Digital Printing Machine Market Professional Survey Report 2016’ presents insights into the primary factors that is influencing the market’s trajectory.
Digital textile printing offers a practical approach which has encouraged several designers and manufacturers to opt for it over other printing technologies. Despite the proliferation of digital printing being sluggish compared to the traditional forms printing, it is gradually catching up with the introduction of novel technologies. The demand for textile digital printing will thus increase in the forthcoming years with the changing dimensions of the textile industry.
The reasons for growing demand for textile digital printing machines are many. Compared to screen printing, these machines enable higher creativity in textile printing and provide superior design flexibility. Furthermore, designers nowadays prefer digital printing because of its cost-effectiveness.
Unlike conventional printing methods, digital printing is eco-friendly and requires lesser physical inventory levels. This is one of the key factors that is fuelling demand for digital printing machines in the textile industry. Since these machines contribute little to carbon footprints, their deployment is expected to surge considerably in the forthcoming years. Digital printing on clothes is carried out using printers, which enable saving over 95 per cent of the water used if the process was carried out using traditional methods. Furthermore, digital machine consumes considerably less amount of energy, leading to very little textile waste. The increasing awareness regarding the intrinsic benefits of the technology will boost installation of digital printing machines across the textile industry. Moreover, manufacturers are nowadays increasingly relying on digital textile printing to cater to the dynamic preferences of consumers.
These factors are supporting the growth of the textile digital printing machine market. However, the growth witnessed by the market in future will be determined by the penetration of digital printing into the commercial textile production.
