FW
Italian machinery manufacturers involved in the production of machines for technical textiles will show their innovative solutions at Techtextil, US, May 22 to 24. Italian exports to the US market testify the will of American textile customers to invest in new equipment. During January to November 2017, Italian exports of textile machinery to the US grew ten per cent compared to the same period of the previous year. In 2017 the most relevant share of Italian machines exported to the US market was for the finishing sector, followed by accessories.
Techtextil opens under the best auspices for the American technical textile and nonwoven market. The US market for specialty fabrics and technical textiles grew 2.6 per cent in 2017 and the projections for 2018 are quite positive. Moreover US exports of specialty and industrial fabrics rose 4.22 per cent in 2017 over 2016.
Techtextil presents the complete spectrum of technical textiles and nonwovens for all areas of application, making it one of the most relevant user fairs for textile innovations. Technical textiles include textile-reinforced concrete, woven fabrics for lightweight constructions and functionalised textiles. They have applications in the automobile and aerospace industries, architecture, construction, occupational safety, sport, mobility and apparel segments.
Complimenting African nations on successfully concluding the African Continental Free Trade Agreement (AfCFTA), Indian minister for commerce and industry Suresh Prabhu says India will negotiate an unique free trade agreement with the AfCFTA that will be beneficial to the continent’s needs. The current India-Africa trade volume is far below potential.
Efforts are needed to step up the current India-Africa trade volume worth $53-billion and diversify the trade basket, he told the inaugural session of the 13th Confederation of Indian Industry (CII)-Exim Bank Conclave on India-Africa Project Partnership in New Delhi recently.
The ministry is refurbishing export insurance and the Project Export Promotion Council to provide the much needed boost to India’s exports to Africa. He further added the government is also planning to set up a new India-Africa Development Fund to synergise the lines of credit and other export promotion and development programs to bring about a more holistic development of the continent.
India wants to tweak the South Asian Free Trade Agreement to ensure that apparels exported to India from least developed countries in the region have their yarns and fibers sourced from India. The duty-free export facility given to Bangladesh under the LDC clause actually helps China increase its exports. This happens as Bangladesh does not impose import duty on Chinese fabrics as these raw materials are intended for export from the country. In sharp contrast Indian garment manufacturers are forced to pay 20 per cent import duty for using the same Chinese fabric.
Bangladesh imports Chinese fabrics and converts them into garments using its cheap labor. Without the need for paying any import duties, it exports these garments to India.
India permits duty free imports of readymade garments from Bangladesh. While in 2006 it was limited to eight million pieces, later India lifted the quantitative restriction. In the GST regime, the Indian industry has been under severe stress with increasing imports of garments from Bangladesh and other countries. In the pre-GST scenario, imports of garments from Bangladesh and other countries attracted a countervailing duty of 12.5 per cent and an education cess of three per cent. However, post-GST, there is no cost for import of garments from Bangladesh.
Primark’s sales were hit by unseasonably warm weather in October. But the UK fashion chain expects profit growth to pick up this year. Underlying sales at Primark rose one per cent in the 16 weeks to March 3, and the chain saw record sales in the week before Christmas.
Primark operates across Europe and has been expanding in the US. Primark opened a 75,000 sq ft store in the UK and will continue to drive sales growth through new stores. It added 16 new stores in the period, including several in UK, Ireland, Germany, France, the Netherlands and the US.
Primark is an Anglo-Irish chain owned by Associated British Foods. Among Primark’s top 20 stores by sales density, 15 are now in continental Europe including seven in its newest markets of France and Italy. Primark is unique among mega-sized retailers in not selling online.
ABF expects half-year operating profits for the group to be similar to levels seen last year. While most of its businesses have seen revenues rise, its sugar unit’s revenue and profit is expected to fall, mainly as a result of significantly lower EU prices which affected its UK and Spanish businesses.
GOTS has come up with an innovative management approach. It has installed dual leadership as modern management form. More than 5,000 operations in and around 63 countries are GOTS certified. It is the standard of choice for organic textiles.
GOTS (Global Organic Textile Standard) is the voluntary global standard for the entire post-harvest processing (including spinning, knitting, weaving, dyeing and manufacturing) of apparel and home textiles made with certified organic fiber (such as organic cotton and organic wool), and includes both environmental and social criteria. Key provisions include a ban on the use of genetically modified organisms, highly hazardous chemicals such as azo dyes and formaldehyde and child labor.
GOTS was developed by leading international standard setters -- Organic Trade Association (US), Japan Organic Cotton Association, International Association Natural Textile Industry (Germany), and Soil Association (UK)-- to define globally-recognised requirements that ensure the organic status of textiles, from field to finished product.
GOTS once again lives up to its pioneer role. It began with the harmonization of existing standards in 2002 into the global standard for the processing of certified organic fibers along the entire supply chain. It continues through regular revisions by a multi-stakeholder process.
China and the European Union are eager to foster ties. When trade and technology cooperation between China and the US faces a standoff, there will be more room for China and the EU to work together. China and the EU are more complementary to each other, while there is more competition between China and the US.
Both China and the EU are supporters of globalization, comply with WTO rules and stand firmly against unilateralism and trade war. China is already in close cooperation with the EU in many aspects including high speed railways, nuclear power and hydrogen energy. The EU is also proficient in developing future technologies, while China has an attractive market, open-minded consumers, well-developed infrastructure and a supportive government. It gives the two sides solid ground for high-tech cooperation.
China’s massive market size remains attractive to the EU. Trade volume between China and the EU saw a yearly increase of 12.7 per cent in 2017. It is relatively smaller compared to the trade volume between China and the US, but it has potential to grow. Compared to the United States, the EU has relatively less restrictions on the import and export of high tech products with China. Europe is also China’s major partner in services, technology and related products.
Women in Vietnam make up 80 per cent of the workforce in the garment sector. Better Work has been operating in Vietnam since 2009. This is a joint program of the ILO and International Finance Corporation and is active in eight countries, reaching more than two million workers.
Over 500 garment factories, with a workforce of 7,00,000, participate in the program in the country. The program has shown garment factories that provide decent, good quality jobs and treat workers fairly can be a powerful driver of women’s empowerment and help bring lasting benefits to them, their families, and their communities.
As a result of their participation in the Better Work program, factories have steadily improved compliance with ILO core labor standards and national legislation covering compensation, contracts, occupational safety and health and working time. This has significantly improved working conditions and at the same time enhanced factories’ productivity and profitability. Better Work, launched in 2014, is a joint initiative between International Labor Organization and International Finance Corporation. It helps ensure compliance issues like welfare funds, vacation and maternity leave in factories. It has introduced a new concept of supporting readymade garment factories to boost their compliance while enhancing productivity.
As per the BGMEA (Bangladesh Garment Manufacturers and Exporters Association), the country’s RMG exports to the European Union surged 10.95 per cent from July to December (FY ’17-18). The EU is the largest garment export market for Bangladesh followed by the US. Bangladesh exported apparels worth $9.577 billion to the EU in the first six months of its fiscal 2017-18 as against $8.633 billion in the corresponding period of FY 2016-17.
The top five exporting destinations were: Germany, UK, Spain, France and Italy during the review period. Bangladesh shipped apparels to Germany valued at $2.665 billion as compared to $2.632 billion in the same period of FY 2016-17. The second spot in the tally was grabbed by the UK which imported RMG worth $1.85 billion from Bangladesh. The value posted a staggering surge of 20.70 per cent on the year-on-year basis.
Spain ranked third with $1.133 billion RMG import from Bangladesh. Last year, in the same period, Bangladesh shipped apparels worth $900 million to Spain, thereby, in the current fiscal it marked a solid boost of 25.87 per cent in the exports value. France and Italy remained at 4th and 5th spot with apparel import from Bangladesh worth $ 878.35 million and $ 743.88 million, respectively. Exports to France went up 1.09 per cent an impressive 16.18 per cent jump was witnessed in RMG exports to Italy.
Bangladesh is the third largest exporter of textile and apparel products globally. Its textile and apparel exports grew at a CAGR of nine per cent over the last five years while imports increased at a CAGR of seven per cent. Cotton textiles is the largest imported category by Bangladesh, representing 55 per cent of total textile and apparel imports. This is followed by manmade textiles, others and apparel with a share of 35 per cent, 6.8 per cent and 3.2 per cent respectively.
China is the largest supplier accounting for a 58 per cent share. India is the second largest supplier of textile and apparel products to Bangladesh. Cotton textile is the largest category with a share of 77 per cent in India’s textile and apparel exports to Bangladesh. This is followed by manmade textiles and apparel having a share of 17 per cent and four per cent respectively.
Currently Bangladesh imports yarn and fabric from China, India and other nations to fill the demand-supply gap. However, many new investments are planned in the spinning and weaving sectors of Bangladesh in the coming years. Thus Bangladesh is expected to emerge as a self-sufficient textile and apparel hub by focusing more on backward integration within the next 10 years. This is expected to lower export opportunities for China and India.
Hence, while Bangladesh is a key export market for Indian textiles, it will be important for Indian firms whose major export market is Bangladesh to look for newer markets for their exports in the coming years.
On an average it takes about 70 liters of water to make a pair of jeans. Now, Arvind aims to make a pair with just a glass of water. Arvind is one of India’s largest denim producers. The company produces over 100 million meters of fabrics and six million pairs of jeans.
A year ago, Arvind moved to zero discharge of hazardous chemicals from its units. For reducing its water footprint, the company has worked with technology providers in the US and imported machines from Europe that now allow it to replace the water used in washing of denim to manufacturing instead with machines to give the same washed look.
Chemical waste from the manufacturing of indigo blue jeans has turned rivers to an unnatural shade of blue in countries like China and India. Denim constitutes approximately 30 per cent of Arvind’s fabric and garment business. Arvind is a supplier to brands like Tommy Hilfiger, Calvin Klien, Gap, Levi’s, Lee, Wrangler, H&M and Hugo Boss. It also has its own in-house brands like Flying Machine.
Close to 650 to 700 million pairs of jeans are sold annually in India. The global jeans market is expected to grow by 4.2 per cent for men and 3.7 per cent for women.
