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Bombay Dyeing, established in 1879, has reported a narrowing of net loss to Rs 52.97 crores for the third quarter ended December 31, 2016. The company had posted a consolidated net loss of Rs 78.15 crores in the same period last fiscal.
Net sales during the period under review stood at Rs 372.6 crores as against Rs 325.77 crores in the year-ago quarter, up 14.38 per cent. In the third quarter this fiscal, cost of materials consumed stood at Rs 221.49 crores as against Rs 207.25 crores a year ago, up 6.87 per cent. The polyester segment posted a revenue of Rs 265.19 crores as compared to Rs 242.64 crores in the same quarter last fiscal.
The retail/textile segment earned a revenue of Rs 70.21 crores as against Rs 48.69 crores while that of real estate had a revenue of 47.22 crores, up from Rs 44.22 crores in the year-ago quarter. The company’s textile products range from towels and bed covers to clothing and fabrics for men, women and children as well as polyester staple fiber. Bombay Dyeing also has a wide range of industrial fabrics that include microdot interlining, fabrics for shoe uppers, adhesives, abrasives, leather cloth and filters.
"Optimistic about market scenario, Aniruddha Deshmukh, MD & CEO, Mafatlal Industries says “We really see a good opportunity in the market.” Mafatlal does B2B and B2C trade and also direct selling to end consumers. He says “These days, consumers are attracted towards innovations. They come to the market to see new offerings. In fashion business, you can’t sell if the product is the same as trends change fast and you have to keep pace with this change. You are supposed to innovate consistently,” Deshmukh explains."
Optimistic about market scenario, Aniruddha Deshmukh, MD & CEO, Mafatlal Industries says “We really see a good opportunity in the market.” Mafatlal does B2B and B2C trade and also direct selling to end consumers. He says “These days, consumers are attracted towards innovations. They come to the market to see new offerings. In fashion business, you can’t sell if the product is the same as trends change fast and you have to keep pace with this change. You are supposed to innovate consistently,” Deshmukh explains.
Staying ahead with innovations
Deshmukh says in women’s wear, there are a lot of prints in the market. Viscose has good demand. “In denim, we are making good movement. We are seeing growth in high-end fashion denim.” Similarly, in white fabric, people are looking for more varieties. Mafatlal has introduced dobbies keeping demand in mind.
Talking about maintaining lead, he adds, “There is distribution channel since we are into B2B and B2C both, we have to be aligned with brands and end consumers. Supply and value chain is another area to work on. Supply chain efficiency and on time delivery matters a lot to stay ahead. Competition is there, all you need to do is find your niche, and start dominating the market.”
Mafatlal Industries is into denim and shirting, as well as school uniform and ready to stitch clothing. “In shirting, we are the leader in white fabric category, which is used for shirting, kurta payjamas etc. Then comes polyester cotton and cotton blends, we do fair amount of prints too such as cotton and viscose prints. We are number one in school uniform segment. We do corporate as well and are leading in this segment. And we are well established in ready to stitch segment,” informs Deshmukh.
Industry views
Since textile does not come under any taxation, the only uncertainty is GST and its applicability on the sector. Rest everything is almost certain, opines Deshmukh. The sector has potential as textile is an essential sector and has to grow. What is needed at this point is how we can generate more employment and contribute to the growth of the sector. “The government is taking a number of initiatives for the betterment of the sector, especially garment sector. States are setting up textile parks and policies to encourage growth,” he avers. Talking about other Asian competitors he says, “Countries such as Bangladesh and Vietnam have big scale setups. They are connected well with overseas companies, and are doing a good job. But the fact of the matter is they don’t have domestic demand and this goes to our advantage. We have an equal opportunity in export and domestic market. Since China is dipping in some areas, it is good for India and we should capitalise on it.”
India needs to boost its exports and domestic markets, he feels. “China is giving us space and we should utilise it. We are the second largest in the world after China in textiles. Indeed Bangladesh and neighbouring countries are growing well in garmenting sector but as far as textiles are concerned, we have the potential to be a global leader,” Deshmukh sums up.
"For quite a long time, athleisure has become the mainstay of many lingerie companies. But that scenario seemed a bit diverted at the recently ended Interfiliere exhibition in Paris when companies were back with what they do best – delivering fantastic lingerie fabrics in knits and lace for second-skin applications. The show highlighted the latest lingerie fabrics and trims for Spring/Summer 2018."
For quite a long time, athleisure has become the mainstay of many lingerie companies. But that scenario seemed a bit diverted at the recently ended Interfiliere exhibition in Paris when companies were back with what they do best – delivering fantastic lingerie fabrics in knits and lace for second-skin applications. The show highlighted the latest lingerie fabrics and trims for Spring/Summer 2018.
Changing dynamics
Fashion lingerie fabrics have embraced the legacy athleisure has brought to the arena, incorporating performance aspects into high fashion styling in stretch lace, micro fine single knits and urban-inspired embroidery. For sports intimates, it has become a lot more decorative with a stronger fashion styling. The increased decorative aspect of textile surface and use of colour is a trend that was noted as evolving in the products at the ISPO Textrends jury meeting.
Innovation was alive and kicking at Interfiliere as sensational new touch combined with reworked fashion offerings in both sports intimates and fashion lingerie. The added functionality from performance yarns and finishes is definitely here to stay. A contrasting play with dull and bright yarns indicated power zoning as well as adding optical detail without disturbing the smooth surfaces. Incredibly soft to touch, this season’s fabrics are also clean cut. Performance fibers aren’t just delivering a cool-touch finish, they are also morphing into amazingly cotton-like in touch. With this season’s offering of fabrics for the shaping market, there is no excuse from brands in creating new collections with the emphasis on style.
Penn Textile Solutions offered a lace band with engineered edge to eliminate additional seaming. The reduction of reduced cut-and-sew, resulted in smoother finish but it also reduced garment production. A hybrid blend of mercerised micro modal and nylon, with comfort meeting a super sensual touch in an interlock structure, perfect for intimates or active was one of Tintex’ new developments.
Sustainability top agenda
The importance of sustainability continues to be noted by the industry with the latest arrival on the branded fibre front coming from Eastman, who used Interfiliere to introduce their new yarn Naia, a cellulosic yard made from wood pulp from certified and sustainable managed forests. Due to the filament yarn construction, Naia not only has a sensational touch and high luster it also contains the performance benefits of stain resistance, moisture management and cool touch, guaranteeing it as a new bio-based alternative. Additionally, the sustainable aspect of the wood source combined with the inherent performance aspects, especially moisture management, eliminates the need for any further finishing, therefore improving its eco credentials.
Iluna chose the show to launch their Green Label collection with Roica Eco Smart spandex/elastane in Jacquardtronic and textronic articles. Eco Smart is more sustainable, an eco-stretch elastane that is GRS certified (Global Recycling Standard by Textile Exchange). Its production uses polymer science to repurpose up to at least 50 per cent pre-consumer waste.
As for business in this segment, today lingerie suppliers may be leading the way but this has opened a question on whether the industry has spread itself too thin, taken their eyes off target. Perhaps it’s time to consider focusing on best-selling products and eliminating slow sellers, this is applicable to textile supplies and brands. This new focus is very much about doing what you are good at, and building on that.
Since the US is unlikely to sign the Trans-Pacific Partnership (TPP) free trade agreement, China and India are seeking to seal other regional trade agreements. Neither China nor India is a part of TPP. However, India wishes to be able to make a deal with China and countries of Southeast Asia. India also wants to attract professionals from countries with great expertise in textiles, such as France, Italy, Germany and others, and encourage them to exploit the eco-system in place in India.
An increasing number of Chinese businesses have invested in foreign countries such as India, Sri Lanka, Bangladesh, Pakistan, Kenya and Ethiopia, building textile factories there. These investments will enable the Chinese textile supply chain to improve in terms of speed and reactivity.
Last year was a challenging one for China’s textile industry, hampered by rising manpower costs, stricter environmental regulations, exchange rate pressure and the slowdown of domestic demand. Yet, despite the slump in exports, China still held on to its global market share.
In the first 11 months of 2016, China and India were the first and the fourth apparel supplier to the EU. The two countries were also the first and the third textile supplier to the EU.
During the first six months of the current financial year, Pakistan’s exports of readymade garments grew 5.87 per cent compared to the corresponding period of last year. Knitwear exports increased 0.17 per cent; bed wear exports recorded a 4.66 per cent growth. But exports of raw cotton, cotton yarn and cotton cloth witnessed negative growth during the last two quarters of the current financial year. Recently, Pakistan unveiled a package to boost the country’s exports.
Duty drawback for garments would be seven per cent, for textile made-ups six per cent, for processed fabrics five per cent, for yarn and grey fabric four per cent, for sports goods, leather and footwear seven per cent and for carpets and tents five per cent. Import duties on cotton, customs duty on manmade fiber other than polyester and sales tax on imports of textile machinery have been abolished.
Liberal incentives are likely. Exporters will be liable to increase exports by five per cent from January to June 2017 and then by a further ten per cent in financial year 2017-18. A network of roads, highways and motorways will be laid, integrating different regions of the country. Interest rates have been lowered and investors are being facilitated. The zero-rated facility has been given to five export sectors in the budget.
American retailer BCBG is closing 120 stores. California-based BCBG sells women’s dresses, apparel and accessories. The group is reducing its physical retail footprint after being negatively impacted by growth in online sales of rivals. The stores to be closed either are unprofitable or have untenable lease agreements.
BCBG is repositioning its brands and operations for the future with a focus on digital, e-commerce, selected retail locations, in-store boutiques and wholesale and licensing arrangements. Fashion house BCBG was founded in 1989. The first boutique opened in 1992. The brand has operated more than 570 boutiques worldwide, including more than 175 in the US. It has long been a favorite of red-carpet celebrities. Kate Winslet, Victoria Beckham and Alicia Keys have worn its fashions, which include cocktail dresses, handbags and other accessories. The name BCBG is short for the French expression bon chic, bon genre.
BCBG is just the latest retailer to announce plans to pare store counts in the face of increased competition from online sites. Kenneth Cole Productions, a fashion house and shoe company, announced plans in November to close almost all its shops. Macy’s recently announced plans to close 68 stores. Sears and J.C. Penney are also planning store closures.
Trident’s nine-month turnover increased 26 per cent over the same period last year. Profit too rose by 36 per cent. Trident is a manufacturer and exporter of home textiles and paper products. Business has been driven by strong volume growth in terry towels and yarn across markets as a result of sustained focus and efforts on marketing, designing as well as product innovation. Healthy traction in the bed linen segment in both international and domestic markets further supported this momentum.
Trident has an installed capacity of 5.55 lakh spindles and 5,500 rotors capable of manufacturing 1, 15,200 tons a year of cotton, compact and blended yarns. It has ten manufacturing units. The product range services the needs of the knitting, weaving, denim, hosiery, shirting and suiting segments.
Trident exports textile products to nearly 70 countries across the globe and 70 per cent of the revenues are earned through the export business. Trident is strengthening its presence in new markets like the UK, Italy, France, Japan, Australia, South Africa and Canada. The company has expanded its value-added range such as air rich, low tint, fade-resistant bed and bath linen products to cater to the premium segment. In India Trident is in 260 MBOs and is in all major e-commerce portals.
For the third quarter Indo Rama Synthetics’ net revenue was Rs 623.92 crores compared to Rs 663.25 crores in the third quarter of the previous year. EBIDTA for the period decreased to Rs 16.22 crores versus Rs 22.04 crores for the same period in 2015. Net loss was Rs 37.95 crores compared to Rs 7.76 crores in the corresponding quarter last year.
For the nine month period, net revenue was Rs 2,099.80 crores compared to Rs 2,065.37 crores in the previous year. EBIDTA for the period was Rs 8.80 crores versus Rs 56.56 crores in the previous year. Net loss for the period was Rs 69.20 crores compared to a net loss of Rs 51.60 crores during the corresponding period of the previous year.
The company saw a sizable drop in volumes immediately after November 8, leading to a negative financial impact, which is now slowly getting back to normal. Indo Rama Synthetics is India’s largest dedicated polyester manufacturer with a production capacity of 6,10,050 tons per annum of polyester staple fiber, filament yarn, draw texturized yarn, fully drawn yarn and textile grade chips. The group has a strong presence in Indonesia, Thailand, US, Nepal and Sri Lanka besides India. It has focused business activities in the field of textiles, polyesters, and industrial chemicals.
India’s apparel exports to the US fell by 4.8 per cent y-o-y in December 2016.Despite a decline in export value, India’s market share expanded by 10 basis points to 4.2 per cent. The country maintained its position as the sixth largest apparel exporter to the US.
The decrease in India’s export value was solely attributed to a fall in export realisations. During the month, export realisation dropped by 7.4 per cent. However export quantity grew by 2.8 per cent. Among the top five apparel exporting countries to the US, only Vietnam and Mexico registered a growth in apparel exports. China saw its exports fall by 11.2 per cent. The country’s market share deteriorated by 150 basis points to 32.9 per cent. Exports from Indonesia and Bangladesh fell 10.8 per cent and 8.5 per cent respectively. Indonesia’s market share dipped by 30 basis points to 5.4 per cent and Bangladesh’s by 10 basis points to 6.4 per cent.
Vietnam’s apparel exports to the US rose 4.2 per cent. The country’s market share expanded by 150 basis points to 13.9 per cent. Mexico’s exports grew by 9.4 per cent while its market share expanded by 70 basis points to 4.7 per cent.
Invista’s brand Cordura which makes cutting edge fabrics across key textile categories has got more than 50 awards in its 50th anniversary year at ISPO Textrends, making it its first best in category product win with Cordura 4ever knit by Yoonia (Korea). In all 51 Cordura fabrics across six key textile categories emerged winners. These cutting-edge fabrics are on display at ISPO Textrends, as part of the ISPO Munich exhibition, taking place this week. Many of the winning fabrics selected were in the soft equipment category, a reflection of the Cordura brand's durable heritage, which has its roots in technical backpacks. The brand produces fabrics for tents, backpacks, sleeping bags, shoes and more. They are lightweight, durable, abrasion resistant, offer UV protection and are waterproof.
Fabrics in the street sports category range from denim with new performance levels to lighter functional fabrics and finishes with a fashionable edge. The base layer category features next-to-skin fabrics for technical underwear, with pre-shaping, support, thermal or moisture management performance. Softness, comfort, anti-bacterial or eco-friendly properties are added values.
In the second layer category are fleeces, lightweight protective fabrics and performance linings usable for maximum thermal characteristics. Technical membranes are featured in the membranes and coatings category often including two-to-three layer fabrics with stretch that are waterproof, windproof and UV-resistant for ultimate protection against the elements.
In addition Cordura has three outdoor product innovations for 2017 –Authentic Heritage, Simplicity in Style and Going the Distance. Authentic Heritage fabrics aim to help achieve real performance, real results, versatility and reliability. Simplicity in Style has bags, packs and apparel with clean simple minimalistic lines and all around durable style. Going the Distance trend is about multi-functional fabrics that bring a range of hidden benefits. These combine the best of both worlds – strong with soft, fashion and function, durability with definition.
