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Sutlej Textiles and Industries have received approval to acquire Birla Textile Mills, located at Baddi in Himachal Pradesh, as a going concern from Chambal Fertilisers and Chemicals, on a slump sale basis. Birla Textile Mills is a division of Chambal Fertilisers and Chemicals.
Sutlej Textiles and Industries has 2,60,872 spindles for spinning yarn, six million meters a year for apparel fabrics, 1.6 million trousers a year and three million meters a year for home textile fabrics. It has plants in Jammu and Kashmir, Rajasthan and Gujarat.
Chambal Fertilisers and Chemicals is one of the largest private sector fertiliser producers in India. It has two hi tech nitrogenous fertiliser plants in Rajasthan.
The Federation of Surat Textile Traders Association (FOSTTA) has appealed to all traders in the country's largest man-made fabric markets to pay their advance tax to the Income Tax department at the earliest. The department has exhorted the trader community to pay advance tax to escape being charged one per cent every month.
Advance tax is the income tax payable if the payer’s liability exceeds Rs 10,000 in a financial year. Advance tax should be paid in the year in which the income is received. Hence, it is also known as pay-as-you-earn scheme. Any rebate due fetches the payer an interest of 0.5 per cent every month, or six per cent annually, as in the case of an income tax refund. However, if the payer doesn't pay the advance tax on time, he’ll be charged one per cent every month, or 12 per cent a year.
FOSTTA has urged traders to pay advance tax on time on their annual income. This is expected to save the department time as well as provide relief to traders from paying 12 per cent extra. FOSTTA is an association of textile processing units of the Surat textile market. There are around 60,000 traders and 160 markets associated with it.
www.fostta.com/
Sri Lanka has bright prospects of recovering European Union's GSP Plus trade concessions that were withdrawn in 2010. The loss of the GSP Plus concession has greatly affected the Sri Lankan apparel sector. Various EU committees have already assured their support to help regain the facility and a visiting member of European Parliament has assured help to Sri Lanka to regain tariff concession.
The EU withdrew the GSP Plus facility in August 2010 claiming Sri Lanka's failure to comply with the eligibility criteria that included implementation of international human rights conventions. However, with Sri Lanka’s new government taking measures to restore democracy and human rights, the country is hopeful that the EU will consider reinstating the concession.
Sri Lanka’s clothing industry was the main beneficiary, using tax breaks to sell to high street retailers in Europe. It gained about $150 million annually due to preferential tariffs. It says the withdrawal of European Union trade benefits has increased its costs and eroded its competitiveness.
The GSP Plus gives some 15 developing countries access to EU markets with preferential conditions in return for implementing international conventions on human rights, labour standards, sustainable development and good governance.
Picanol, the leading manufacturer of weaving machines for technical textiles saw a fall in turnover for 2014 by 25 per cent compared to 2013. The weaving machine division made a hesitant start in 2014 based on a weak order book at the end of 2013. The first half of the year was characterised by lower demand for weaving machines worldwide. This resulted in a sharp decline in orders compared to the record year of 2013. The demand for Picanol weaving machines increased in the fourth quarter of 2014.
The gross profit of the Picanol group for 2014 financial year was €86.4 million compared to €137.4 million in 2013. The gross profit percentage decreased from 24.5 per cent to 20.7 per cent. The operating result decreased by 47 per cent. The group closed 2014 with a net profit of €52.4 million compared to a net profit of €73.1 million in 2013.
For the first half of 2015, Picanol expects to realise an increase in turnover. This is anticipated to be between the turnover recorded during the first half of 2013 and the turnover of the first half of 2014. Picanol anticipates the global market for weaving machines in 2015 will remain at approximately at the same level as that of 2014.
Swedish fashion retailer H&M plans to boost workers rights and impose stricter requirements on the use of short-term, fixed duration contracts for workers at its supplier factories. This came as a response to a new report titled ‘Work Faster or Get Out: Labor rights abuses in Cambodia’s garment industry’.
The report also points to the failure of government labour inspectors to protect workers’ rights besides issues such as discrimination against pregnant workers, forced overtime and retaliation against those who refuse overtime, and unfair treatment of union workers. It also claims the worst conditions occur in small factories carrying out work on a subcontracting basis for larger suppliers with export licences. Eventually supplying to well-known Western brands including Marks & Spencer, Gap, H&M, Adidas, Armani and Joe Fresh.
It recognises the frequent use of short term, fixed duration contracts in the Cambodian garment industry constitutes an illegal breach of workers’ rights, which needs to be addressed by it and other buyers, H&M is reported to have said. Starting from early this year H&M will have stricter requirements towards its suppliers. It will revise its contract requirements, as a first step towards achieving a change towards un-fixed duration contracts, it added.
Suppliers that employ workers over two years on fixed duration contracts will be seen as being in violation of its code of conduct requirements. All suppliers with this violation will be required to create a remedial plan on how to transfer workers to fixed duration contracts. Factory auditors of the company will then follow up on the implementation of these plans. To ensure that this transition takes place in a sustainable way the company will work closely with other actors in the industry. Primarily, it will work closely with international and national unions and employer associations to anchor this shift with the workers themselves, so that this change is understood and seen as beneficial.
World Textile Group, Changzhou-based manufacturers of synthetic fabrics used mainly for outer wear and active wear, is exploring the Indian market. Mondy Qin, General Manager of World Textile Group says his company is planning to set up a bonded warehouse to cater to the growing needs of the retail market in India.
India is the fastest growing market after China in terms of export and retail. Many customers worldwide are looking at Indian sources as labour cost in China is going up. Qin said that World Textile Group has already set up an office in Bengaluru eight months ago, and is trying to increase its customer base. The company employs around 300 people has 450 machines which can produce up to three lakh metres of fabric per day. It is into garment manufacturing, mainly board shorts (used for surfing), walk shorts, shirts and outer wear exported to the US and European markets.
Qin further added that the group saw a turnover of $35 million in 2014 on the basis of its own brand Dunkelvolk and 15 stores in East China, besides presence in five e-Commerce portals like Alibaba. With its strong supply base in fabrics and garments, the company is exploring the Indian market not only for sales, but also in terms of buying garments for its brands.
Pak PM Nawaz Sharif’s efforts to empower textile industry through a growth-oriented ‘Textile Policy 2014-19’ and strong initiatives to boost the economy, the All Pakistan Textile Mills Association (APTMA) hopes to push textile exports figures from $13 billion to $26 billion, double value-addition from $1 billion to $2 billion per million bales, facilitate additional investment of $5 billion in machinery and technology, and improve fiber and product mix in the garment sector.
The textile sector is a backbone of Pakistan’s economy. It plays a central role in the economy. Since 1947, the industry has been impressive. The number of mills increased from 3 to 600 and spindles from about 177,000 to 805 million. Similarly, looms and finishing units increased. Pakistan, is the 8th largest exporter of textile products in Asia, and has less than one per cent share in volume terms of total world textile trade with about $18 trillion per annum. Textile sector contributes 9.5 per cent to the GDP and provides employment to about 15 million. For Pakistan, the development of a textile industry making full use of its resources of cotton is a priority area. There are 1,221 ginning units, 442 spinning units, 124 large spinning units and 425 small units in the country which produce textile products.
The role of All Pakistan Textile Mills Association (APTMA) is to promote and protect the trade commerce and manufactures, to collect and circulate statistics and information besides encouraging unanimity amongst mill owners. It believes that the Pakistan government’s initiatives will boost development of the textile sector.
Pakistan’s textile policy is drafted so that the sector is made domestically and internationally compliant and 3 million jobs are created in the large textile units and vocational trainings of workers for higher productivity.
The Philippine textile industry is re-inventing itself. At one time the country had huge, fully integrated textile mills that did everything –spinning, weaving, knitting, dyeing. They produced and exported garments under a system that used quotas. Mills would have continuous production of one item giving them economy of scale and good profits.
But problems came into the industry with the advent of cheap textile imports, the abuse of quota system (entities with no mills had quotas allowing them to bring in raw materials, real mills had none) and with low prices combined with high wages, there was a general shutdown.
Textile mills have slowly come back to life using a different business plan. Now there is a healthy export of undergarments, sportswear and socks. The Philippines has an abundance of natural fibers like abaca, piña, bamboo and waterlily which are much in demand among textile users. With the use of nano technology that makes them softer, more pliable as well as resistant to water, fire, stains, static, even bacteria, they become unique textiles that are much in demand.
One innovation resulting in a new textile is called pinatex which is a natural fiber constructed from pineapple leaves. Piñatex is environmentally safe. It can be used for clothing, insulation, anti-bacterial material and even wound dressing for its breathable, natural characteristics.
Almost 90 per cent of Macau garment exporters are anticipating a huge drop in sales this quarter. In the last quarter of 2014, the sector suffered a decrease in sales in external markets by around 5 per cent with exports a fraction of what garment companies used to sell five years ago.
The garment industry is one of the most affected by the casino boom as gaming companies virtually sucked in all the workforce in Macau and sent land prices through the roof. In the last quarter of 2014, garment exports was eight times less than what the industry was selling in the same quarter in 2008 and almost 20 times less than in 2007.
Becoming a residual industry in Macau’s economy, garment companies continue to struggle. More than 80 per cent of garment companies expect a substantial decrease in exports this quarter. Only 1.8 per cent expect a slight increase and 13 per cent are hoping for a flat performance.
Growth of foreign sales slowed down to 6.3 per cent during the third quarter of 2014 from a hike of 13 per cent in the second quarter of that year. The slowdown was due to an 8.5 per cent drop in sales to China but was partially offset by a rise of 20 per cent in exports to Hong Kong, Macau’s main market.
The Global Organic Textile Standard (GOTS) conference will be held in Mumbai, May 22, 2015. Companies representing the entire organic textile supply chain will learn about brand and manufacturer experiences with GOTS, as well as the role of local and international policy.
India is the largest producer of organic cotton (approximately 70 per cent of world production) and is also home to the largest number of GOTS-certified processing facilities. More than 1,300 GOTS certified facilities are in India representing more than one-third of the total number of GOTS certified facilities worldwide.
The participation of leading brands, suppliers and the Indian government will provide excellent networking opportunities, and will also help to create successful partnerships including extensive buyer-seller opportunities.
GOTS is the globally recognised standard in ecology and social responsibility for the processing of textiles made from at least 70 per cent certified organic natural fibers. The stringent voluntary global standard addresses the entire post-harvest processing (including spinning, knitting, weaving, dyeing and manufacturing) of textiles made with organic fiber (such as organic cotton and organic wool). Key provisions include a ban on the use of genetically modified organisms, restricted substance list, and child labor, while requiring strong social compliance management systems and strict waste water treatment practices.
