FW
During the first half of 2016, Turkey’s total exports were down by 3.8 per cent to $70.7 billion. Exports rose by 1.4 per cent for textile and raw materials to $5 billion, by 7 per cent for ready wear and garment to $8.7 billion in the same period. Textile and raw material industry did with a small exports increase, while ready to wear and garment industry achieved a remarkable boost. In June 2016, Turkey’s overall exports surged by 1.8 per cent to around $11.9 billion. During January-June 2016, overall exports were down 3.8 per cent to $70.7 billion.
Textile and raw materials industry achieved 6.3 per cent increase at $889 million exports in June. Looking at January-June, the increase was only 1.4 per cent bringing the figure to around $5 billion. However, ready wear and garment industry recorded 7 per cent hike in exports at $8.7 billion compared to the same half of 2015. The industry obtained $1.53 billion income, a 5.2 per cent decline in exports compared to June 2015.
The largest textile and raw materials exports were made to the EU (28) nations in total, in June 2016 and January-June period. Exports to the union were up by 16.6 per cent in June to stand at $477 million. In the first half of this year, exports to the European Union (28) were up 11.4 per cent to $2.7 billion.
Export of man-made fibre yarns from India continued to grow unabated with export of 100 per cent man-made fibre yarns from India valuing $20.76 million in June this year, up 35.9 per cent on a year-on-year basis while volumes was 7.82 million kg, up 40.5 per cent as compared to the same month last year. The total volume comprised 2.93 million kg of polyester yarn, 3.81 million kg of viscose yarn and 1.07 million kg of acrylic yarn.
Exports of polyester yarn went up by 6.9 per cent in value while the value of exports of viscose yarn surged 108.3 per cent in June, this year. Exports of Acrylic yarn saw a drastic climb down of 24.7 per cent in June. Unit price realization was down US cents 14 a kg for polyester from a year ago and that of viscose yarn was down by US cent 1 a kg. Acrylic yarn unit price realization was down by US cents 70 a kg year on year basis.
It is interesting to note that polyester spun yarns were exported to 49 countries in June with total volumes at 2.93 million kg of which 23.2 per cent was shipped by Turkey alone. Twelve new destinations were found for polyester yarn this June. Among these Canada, Argentina, Uganda, Algeria and Russia were the major ones which imported. Turkey, Egypt and Indonesia were the fastest growing markets for polyester yarns while four countries did not import any polyester yarns during the month including Botswana and Nigeria.
Export of viscose yarn was at 3.81 million kg and was exported to 25 countries with Iran being the top buyer. It was followed by Belgium. Both these markets accounted for 45.7 per cent of the entire viscose yarn exported in June. Brazil, Egypt, Germany and Indonesia were the fastest growing markets for viscose yarns while Portugal, United Kingdom, Canada, China and Turkmenistan were the new major markets.
Pakistan, South Korea and Vietnam were the major countries that did not import any viscose yarns during the month among 7 countries.
Garment manufacturers in Tirupur have urged textile mills in their region to drop the move to increase prices of hosiery yarn as cotton prices are climbing down. Cotton prices have come down by Rs 2,000 per candy (about 355 kg) and the inclination of mills to increase cotton yarn prices will severely affect Tirupur garment export sector, points out A Sakthivel, President, Tirupur Exporters' Association (TEA).
Hosiery yarn prices, which were being sold at Rs 216 per kg in April is now being quoted at around Rs 250 per kg after three rounds of price increases. The increase in hosiery yarn prices has not been commensurate with the rise in cotton prices, said K Selvaraju, Secretary-General, Southern India Mills' Association (SIMA). Even after accounting for the recent decline in cotton prices, the cost of clean cotton (after removing waste and short fibres) increased by Rs 52 per kg since in April while hosiery yarn prices have gone up by only by Rs 34 per kg. About 70kgs of combed hosiery yarn is typically produced from 100 kg of cotton. Around 85 kgs carded hosiery yarn is made from 100 kgs of cotton.
In a letter to SIMA, Sakthivel urged them to not resort to increase yarn prices when cotton prices are coming down. He said they had an apprehension that the business created over time may go out of India and once the business is lost it would be difficult to bring it back.
Diplomats of seven African countries have invited Coimbatore's trading and industrial community to invest in their countries in different sectors including textiles. The diplomats were speaking at a meeting organised by the Confederation of Industry (CII) in Coimbatore on “Africa Seminar Series – the Land of Unexplored Potential”. Two of them particularly highlighted the textiles and apparel sector where Indian companies can invest in their countries.
Mali's ambassador, Niankoro Yeah Samake said Coimbatore was of special interest to his country because cotton was a major export product of the country and Coimbatore a hub for textile industry. In February next year, a trade mission from India will visit Mali to explore opportunities in different sectors including cotton in that country.
Minister Counsellor and Charge d' Affairs of the Ethiopian Embassy Molalign Asfaw pointed out that Ethiopia has registered double digit growth for more than a decade and over 600 Indian companies have registered in the country. Of these, 250 have started operations. He said the country has 12 industrial parks and offers several tax incentives to investors and there are enough opportunities for textiles and apparel industries.
Diplomats from Uganda, Botswana, Tanzania, Zambia and Mauritius also spoke at the meeting.
The long spell of rainy days this year till now is proving to be a cause of worry for cotton farmers in Adilabad district in Telangana. As it is the prolonged cloudy weather has already caused stunting of growth in cotton plants and it is feared that another 10 days of similar conditions could spell doom for the entire crop. Lack of photosynthesis due to the absence of sunlight and heavy weeding impeding growth are the main reasons for the stunted plants.
Though the normal rainfall in Adilabad is about 110 cm during the monsoons, the rainy days are usually spread over a four-month period under ideal conditions. However, this year, the average rainfall during the first two months has exceeded the normal quota of the corresponding period by 35 per cent as additional number of rainy days was recorded in June and July.
The initial anxiety of the dry spell gave way to spells of good rainfall. While June recorded 13 days of rainfall, the trend continued in July which had as many as 23 rainy days with local people not getting a chance to see a sunny day. The plant lost growth of about 6 inches due to damp weather. Now, the plants need sunlight immediately otherwise the yield of cotton will decrease abnormally. Under such conditions, the plants go to their reproductive stage sooner than they would have done under normal conditions. The bolls formed under these conditions are smaller.
The July nylon textile filament (NFY) market in China showed divergence from last year. Compared with 2015, the NFY market tracked a similar trend in January to March 2016 to rise up after a decline. But the downtrend began earlier than last year to fall from early May, and NFY prices were pushed up slightly in July amid deficit pressure from a surging feedstock. However in 2015, NFY prices began falling in end June and speeded up decline in July.
It is one year since the meeting of non-credit sales by eight NFY leading companies. Most enterprises have already made a conscious attempt to control credit deals, but to totally solve the arrear problem by end 2016 is very hard. Though the growth rate of account receivables in January to July 2016 is significantly lower than the same period last year, the arrears left before the 2016 spring festival were much higher than before, so the overall account receivables remain high.
Despite a higher run rate of 60 to 70 per cent in off-season, NFY demand not only comes from downstream hand-to-mouth purchasing, but also to prepare stocks in advance. Therefore, the August demand will be lighter after the transient increment, and NFY plants are suggested to control potential risks.
A Chinese conglomerate has shown interest in investing Rs 600 crores in the textile park at Sitarganj, in Uttarakhand. This is likely to help the state’s textile industry take a major steps towards growth. Experts say surplus ground water in Sitarganj and proximity of Udham Singh Nagar to neighbouring countries like Nepal and China have attracted industrialists to the textile park. Another advantage is its border with Uttar Pradesh and good transportation facility to other parts of the country.
As per the State Industrial Development Corporation of Uttarakhand (SIDCUL), it will be the first Chinese company to make 100 per cent foreign direct investment (FDI) in India. Uttarakhand, is anticipating more Chinese firms to invest in the state in the future. This venture will also provide employment to around 8,000 people and with the inflow of textile industries, it will generate more options of livelihood.
Uttarakhand is a suitable business destination for industrialists due to benefits like rebate in per unit electricity bill, exemption from electricity tax, 50 per cent rebate in land for setting up textile industry.
French luxury brand Chanel is investing in workshops that will produce fine fabrics used for the brand’s clothing. Chanel will further expand investment in upstream production to ensure the future development of this type of fabric and silk. In addition, Chanel already holds a small stake in Denis & Fils, a specialized clothing and household goods company. It also produces solid colored jacquard fabrics. Denis & Fils is a high end silk producer in France.
These companies will provide Chanel a strong upstream supply chain. Chanel will soon equip these companies with high-tech equipment and machines. The brand is always in search of upstream suppliers of raw materials. Since 1984 Chanel has acquired at least 17 such workshops in France. Known for haute couture, Chanel was founded in 1909 by fashion designer Coco Chanel. Its products cover clothes, fragrances, eyewear, jewelry, handbags and watches. The brand is most famous for its little black dress, the Chanel No. 5 perfume and the Chanel suit.
The brand upholds a commitment to style, innovation and creativity and is known for uncomplicated luxury. Chanel continues to inspire women of all ages around the world with its timeless modernity.
Alok Industries, the textile player whose net worth has been eroded, has approached lenders for fresh funds so that it can increase production. The highly indebted textile company, which owes bankers a whopping Rs 20,000 crores, believes it can boost production if given access to more funds. The company reported a consolidated loss of Rs 3,774.2 crores for financial year 2016 on revenues of Rs 13,040.9 crores, down 46 per cent over financial year 2015.
Alok Industries management is trying to convince the State Bank of India that if it is lent fresh funds, its performance can improve. The company says capacity utilisation at its plants in Silvassa went up by about 10 to 15 per cent in the first quarter of financial year 2017. Last month, a court stayed sale of assets and change in the company’s equity structure, keeping banks from converting any loans into equity. The court’s order followed a winding up petition filed by HSBC on behalf of a clutch of unsecured lenders including VTB Capital to settle outstanding dues worth 55 million dollars.
While the RBI doesn’t prohibit banks from extending fresh loans to a defaulter, bankers are generally reluctant to do so.
The Comptroller and Auditor General (CAG) has pulled up the Apparel Export Promotion Council (AEPC) for the tendering process adopted for leasing of a furnished office accommodation. CAG says the process was ‘flawed’ as it extended undue benefits to a private party, leading to a revenue loss of Rs 17.42 crores. The AEPC published advertisements (August/September 2007) in newspapers for leasing of furnished office premises measuring 23,382 sq. ft. at Bhikaji Cama Place, New Delhi.
Three bidders were short-listed and called for negotiation. The CAG said though Teesta Urja did not participate in the tendering process, their bid was considered one week after opening of bids. Meanwhile, E-Square International did not turn up for negotiations and IPM sought one day to give its best offer on September but finally they also did not turn up. CAG said it is clear the tendering process for leasing of furnished office accommodation was flawed as AEPC failed to maintain the sanctity of the process.
