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Mauritius may have a reputation as a tropical paradise, but for thousands of migrants working in its factories, it represents a limbo of debt and bonded labor. Many arrive from Bangladesh, attracted by the promise of a decent job so that they can send money home to their families. But the reality is that they end up trapped for months, even years, working to repay the huge fees charged by unscrupulous recruitment agents just to secure their job abroad.
Now Mauritius and Bangladesh are negotiating an agreement that should help to put an end to this kind of practice once and for all. These efforts are starting to bear fruit. A number of suppliers in Mauritius have already changed their recruitment policies and practices. In some cases, debts owed by migrant workers have been repaid to free them from bonded labor.
The apparel and textile industry is big business for Mauritius, but it is heavily reliant on migrant workers, the majority coming from Bangladesh, with others from Madagascar, India and Sri Lanka. This reliance on migrant labor without due oversight of the recruitment process has made it a high-risk country for modern slavery. Mauritian trade unions are starting to build alliances with Bangladesh unions so that workers can better understand their rights before they leave.
IIT Expo was held in Sri Lanka, February 21 to 23, 2018. Exhibitors from various textile clusters of India--Tamil Nadu, Mumbai, Surat, Rajasthan--displayed apparel fabrics, made-ups, home textiles in various blends, textures, colors, designs.
The event was useful for importers, dealers, wholesalers of various textiles, sourcing agencies, retailers/buying houses, institutional buyers, yarn traders and garment manufacturers of Sri Lanka to directly interact with exhibitors from India and to choose their requirements. Different varieties in fiber composition, weave, shades were available under one roof.
Sri Lanka is a garment making hub. A scenario where Sri Lanka sources from India and manufactures apparel and garments for the rest of the world could lead to a win-win situation for both countries. Both countries share a rich textile tradition. Large Indian companies can encourage Sri Lankan companies to be part of their supply and value chains.
Sri Lanka has been urged to make use of fully-funded training opportunities in India under the Indian Technical and Economic Cooperation program, in which a number of slots is earmarked for textile related subjects. Sri Lanka is one of India’s largest trading partners in SAARC. India in turn is one of Sri Lanka’s largest trade partners globally. Sri Lanka is among the top ten countries which import cotton fabrics from India.
Kerala is supposed to be the most brand aware state in India for intimate wear following this insight, Intimasia is set to hold its largest trade show in Kochi from 8-10 March, 2018. The intimate apparel industry, despite being the fastest growing sector of the textile and apparel industry in India, has been an almost closeted industry. Correspondingly this lack of visibility has been a setback for the industry which is lagging behind its global counterparts almost by a decade.
It will be a gala event as more than 70 intimate wear brands from all over the country will participate and exhibit their designs and products. Most Keralites prefer wearing branded intimate wear. But the current 2500+ Multi Brand Outlets (MBOs) are not enough to meet existing demand. The intimate apparel market in Kerala is mostly occupied by local brands. So, all the popular pan-Indian brands will be coming to INTIMASIA with the hopes of exploring this market and expanding their businesses to the state. Kerala has been ranked second by the World Bank in the Investment Climate Index among all states of India. The ranking speaks volumes about Kerala being one of the best places to set up a business.
Yusuf Dohadwala, CEO, Intimate Apparel Association of India and one of the most influential thought leaders in the industry, says, " Intimasia will be the largest intimate apparel trade event in India. It's only apt that we host the event in Kerala where the intimate apparel industry is projected to have an annual turnover of INR 5000 crores." Yusuf predicts that lingerie retail in India is slated for a revolution that will be kick started at this expo with the proliferation of brands entering the highly rewarding Kerala Market. The expo is also a first of its kind platform for networking.
At the International Cotton Conference in Bremen to be held on March 21, 2018, session IV Textile Processing will be dedicated to this subject. Michael Tuschak, Mayer & Cie., Germany, informs about the 3-in-1 concept of Spinitsystems. Spinning, cleaning and knitting are all combined in one machine. This enables the production process of high-quality single jersey knitwear to be shortened significantly, which saves energy costs and reduces CO2 emissions.
An old dye returns to glory.. Dean Etheridge of Texas Tech University, USA, talks about a new, innovative indigo dyeing process for cotton yarns using foam. This saves large amounts of water and is now increasingly being used by major brands in jeans production. Amin Leder, Trützschler GmbH & Co. KG, Germany, presents a technique where the stretching process for rotor yarn production does not take place in a separate machine, but is integrated into the carding. This makes it possible to efficiently process even cotton with a higher waste content.
Harald Schwippel, from Rieter, Switzerland, will discuss all four major spinning technologies for cotton – ring spinning, compact spinning, rotor spinning and air-jet spinning. His talk provides an overview of the possibilities that each of these processes currently offers for the manufacture of different yarns and the most efficient options for different applications.
In the run-up to the International Cotton Conference, the Fibre Institute Bremen and the Cotton Exchange are organising a specific seminar for spinning mills on Tuesday, dealing with the efficient handling of contaminants in cotton, from elimination in production to removal in winding. Expert Session IX deals with the exchange of the latest research results, e.g. in the field of ginning in relation to cotton quality, or the important issue of checking the traceability of GMO-free cotton.
With apparel from Bangladesh made from fabric sourced out of China flooding the Indian market, the textile industry wants the commerce ministry to fine tune South Asia Free Trade Area (SAFTAs) rules of origin to make it mandatory for Bangladesh to use yarn and fabric produced in India in its garments to claim duty and quota-free exports. Even as textile exports from India continue to drop, there has been a surge in imports of textile products, post GST.
Data released by the Export Promotion Bureau of Bangladesh says India’s imports of garments from Bangladesh rose by 66 per cent year-on-year (y-o-y) to $111.3 million during July-December 2017, while knitted apparel imports from Bangladesh spiralled upward by 77 per cent y-o-y to $36.5 million between July and December 2017, woven apparel imports went up by 62 per cent y-o-y to $74.8 million.
Prabhu Dhamodharan, convenor, Indian Texpreneurs’ Federation (ITF) asserts, Tweaking SAFTA rules of origin to make the use of yarn and fabrics of Indian origin mandatory for allowing duty-free, quota-free market access will prevent China from taking undue advantage of a facility that is meant for poor, least developed countries (LDCs). At the same time, it will give a boost to India’s export of yarn and fabrics to Bangladesh and other LDCs, which at present are being supplied by China. India will not be the first country to impose such sourcing restrictions for allowing duty-free import of apparel. The US has imposed sourcing restriction under North American Free Trade Agreement (NAFTA) for accepting duty-free import of garments from Mexico and other NAFTA members. India permitted duty free import of readymade garments from Bangladesh under SAFTA in 2006. Earlier, this facility was limited to 8 million pieces per annum. This restriction was removed in 2010 which correspondingly resulted in imports from Bangladesh rising consistently.
Bangladesh imports Chinese fabric, converts them into garments using its cheap labour and exports them to India without paying any duties.Thus, this unilateral duty free market access given to Bangladesh is actually facilitating backdoor entry of Chinese textiles into India.
Denim ‘fur’— not the real fur — is the latest fashion trend to be seen on catwalks. Fashion designer Tiziano Guardini in a joint venture with ISKO Creative Room is set to create the material, which has been manufactured using certified organic cotton and pre-consumer recycled cotton. The denim ‘fur’ doesn’t look like real fur, ISKO — the world’s largest producer of denim — is of the view that this new material can be used to enhance the look of apparel in the same way that real fur does. Fabio Di Liberto, brand director of ISKO, was reported to have said, “We believe that denim ‘fur’ can be a responsible, fun, hype and cruelty-free alternative to animal fur. Sustainability is a difficult concept, dynamic and multidimensional.
ISKO is working with its partners to raise awareness and to change the way people think about denim, within the industry but also with consumers.People on social media are all for the new cruelty-free material.
"I am so in love with the denim 'fur'. So creative and effective," someone posted on Instagram and shared by ISKO. Others say the designs are "very beautiful" and "wonderful".
Tiziano Guardini who is a strong believer in using sustainable materials explains, "I've always wanted to create fur alternatives and have in the past trialled a number of different looks - my first creation was made from pine needles! Western countries do not need to use animal furs but some fashion houses continue to do so. I'm hoping that by creating a sustainable alternative such as denim fur we will be able to show people that fur alternatives are just as beautiful and aesthetically pleasing as the real thing."
Bangladesh has 67 eco-friendly green buildings, the highest number in the world. The country’s apparel sector has a 13 LEED platinum and a total 67 certified green factories in platinum, gold and silver categories, the highest in the world. Bangladesh, the second largest readymade garment exporter in the world, has taken leading position in sustainable green industrialisation with the world’s several top ranked green factories.
Indonesia is the second largest, with 40 green factories, followed by India with 30 and Sri Lanka with ten. After independence in 1971, Bangladesh was held up as an example of a failed state. People were used to thinking of the Bangladesh readymade garment industry as a place of forced labor, child labor and small factories.
In recent years a silent revolution has taken place in the garment industry of Bangladesh. In South Asia, Bangladesh has taken the lead in green initiatives. The world’s highest rated LEED platinum denim factory, knit factory, washing plant and textile mill all are situated in Bangladesh. It’s expected about 10 per cent of the total readymade garment sector in the next decade will use green technology. Bangladesh’s readymade garment sector is a $28 billion industry.
Integrated textile manufacturing company Vardhman Textiles, has started hedging cotton on Multi Commodity Exchange (MCX) to manage the volatility in cotton prices. Cotton is the basic raw material for the textile industry and its price is influenced by domestic and international situations, largely following increasing globalisation and international trade.
During October 2016 and September 2017, cotton prices reached a volatility of 19.25 per cent (annualised) and with physical market size of cotton projected at around Rs 68,000 crore, the cotton industry faced annualised price risk of over Rs 13.000 crore.
Vardhman Textiles, part of the Vardhman Group, is one of the largest textile companies in India that manufactures cotton yarn and fabric for various applications — such as hand knitting yarn, machine knitting yarns, jerseys, sweaters, sarees, dress materials and carpets— with a capacity of over one million spindles, amounting for 4 per cent of the country’s yarn production, 1320 looms for weaving of fabrics and 180 million meter per annum of fabrics processing capacity. It is also the second largest producer of sewing threads and the market leader in hand knitting yarn in the country.
Mrugank Paranjape, MD & CEO, MCX says they are glad to serve Vardhman as the platform of choice for their cotton price risk management obligations. Increased corporate participation has enhanced the quality and the process of information convergence in MCX cotton futures, thereby making it the hedging tool of choice for the cotton stakeholders in the country, besides transmitting signals to other major global markets in cotton trading.
IJ Dhuria, Director-Raw Materials, Vardhman Textiles explains, MCX cotton futures contract has been gaining strength, providing them an ideal platform to hedge our inventory and raw material risks effectively. “It has always been our corporate endeavour to best serve the investor interests besides strengthening our competitiveness.
I am happy to note that this risk management initiative of ours will help not only convey the same through our corporate governance report, but also provide for better compliance.”
World’s leading spandex manufacturer, South Korea’s Hyosung Corporation is looking to set up its first-ever spandex manufacturing facility in India by 2019. This strategic tactic is projected to ensure the company gets a foothold in the Indian market. The company has set aside $100 million as seed money for its new unit and is reportedly looking at acquiring a 40 hectares in the AURIC industrial complex near Aurangabad in Maharashtra.
Additional investments will be made as per market demand and growth projections. Hyosung has a presence in India through a trading company in New Delhi. Its spandex brand ‘Creora’ has around 60 per cent of the country’s market share. Currently, the brand’s key areas are Islamic wear such as the hijab, lingerie, sportswear, denim and diapers.
Once the new factory is operational, the company plans to also enter the high-value-added premium market. It is also looking at growing its market share to 70 per cent. Setting up its own spandex manufacturing unit in India is part of Hyosung’s global expansion strategy wherein the company will promote Hyosung Vietnam as the global base for making core products (spandex and tire cords) to tap Europe and Asia, whilst Hyosung India will focus on the big domestic market.
The country’s current spandex manufacturing units are local companies that has a monopoly in this segment. Hyosung feels it has a significant chance of success as its internationally-acclaimed differentiator is function and quality and once operational, it expects profits to flow.
It does come as a surprise to trade analysts that the company has chosen to set up manufacturing facilities in India at a time when the country’s spandex market is on a high. Growing by an annual average of over 12 per cent, the market size is pegged at $200 million by 2020.
State Textile Minister Satyadev Pachauri disclosed the recently-concluded two-day UP Investors Summit in Lucknow, UP, saw the signing of around 29 MoUs valued at Rs 7,436 crores in the textile sector. The Uttar Pradesh government had announced all necessary help to investors and is creating a four-member committee to ensure they can resolve issues in a timely manner. The Textile Commissioner himself will head the committee.
Once operational, over five lakh people are expected to gain employment in UP’s textile and garment manufacturing industry. The 2018 edition of the UP Investor Summit was organised on February 21 and 22 with a key focus on attracting investments in high potential trade segments in UP including textiles and garments. The event saw heads of states and Governments, leaders from the corporate world, heads of international institutions and academia from around the world gather together to further the aim of economic development in the state.
It may be noted that the state became a ‘collateral damage’ post GST implementation that led to shutting down of numerous carpet manufacturing units. The carpet industry in India is currently pegged at around Rs 3,000 to 4,000 crores of which over two-thirds come from the Bhadohi-Mirzapur-Varanasi-Gopiganj-Khamaria region. In December last year, the state government approved the ‘UP Handloom Garment Policy 2017’. The approval of the policy has brought relief to the industry. The huge investment that the state has attracted will only be beneficial if can implement a strategic execution plan.
