A four-day trade show on garment accessories and packaging industries will begin in Dhaka from Wednesday. Bangladesh Garments Accessories and Packaging Manufacturers and Exporters Association (BGAPMEA) in association with ASK Trade and Exhibitions and Zakaria Trade and Fair International will organise the ninth edition of the show Gapexpo 2018 at International Convention City Bashundhara.
Nearly 450 exhibitors from 24 countries, will showcase their apparel manufacturing technology, yarn and fabrics and garment accessories and packaging, printing technology and machinery. Finance Minister AMA Muhith will inaugurate the fair in presence of National Board of Revenue's Chairman Md Mosharraf Hossain Bhuiyan.
Two other events Garmentech Bangladesh 2018, an apparel machinery and allied products tradeshow, and the ninth edition of the International Yarn and Fabrics Sourcing Fair—will also start at the same venue and at the same time. Commerce Minister Tofail Ahmed will hand over export trophies given by the association, in the fourth day of the fair.
The digital textile printing market is expected to grow at an impressive CAGR of over 18 per cent internationally till 2021. International Expo Consults (IEC), part of Falak Holding, has identified textile printing, digital signage and LED as the sectors to watch out for in 2018.
Sign & Graphic Imaging Dubai 2018 (SGI Dubai 2018), the Middle East’s largest printing, signage and graphic industry show, which held from January 14 to 16, caters to the needs of exhibitors and visitors in the LED and textile printing industries besides signage, outdoor media, screen and digital printing industries.
Sharif Rahman, CEO, International Expo Consults, organiser of SGI Dubai 2018, expounds, “Some of the highlighted areas at the show to be considered are heat transfer technology, décor printing, digital textile printing, fabric printing and wall graphic, among others.” Regarding the textile and clothing market, Europe, the Middle East and Africa (EMEA) has a dominating position worldwide and thus gathers the largest share in the global digital textile printing market.
UAEs textile market is the second largest trading market, after oil, and is expected to further grow from 2017-21 due to the lower cost of raw materials. The high speed growth in textile market is expected to grow the digital textile printing market in the five-year period, the statement added.
The SGI Dubai 2018 show hosted several events during the three-days including ‘Knowledge Series’ – a panel discussion involving some of the biggest names in the regional market; ‘Wall of Fame’ – competition for the most creative artwork of 2017 and ‘Masters of Wrap’ – a car wrapping competition in collaboration with Avery Dennison and Strings International. The event welcomed over 300 global exhibitors from across 35 countries around the world. Thousands of people from over 70 countries have already visited the show, it stated.
For years China was the world's top destination for recyclable trash, but a ban on certain imports has left the world speeding up the process to find new dumping grounds for growing piles of garbage. The decision was announced in July and came into force on January 1. This gives companies from abroad just six months to look for options. In China, some recycling companies have had to lay off staff or shut down due to the lost business.
The ban stops imports of 24 categories of solid waste, including certain types of plastics, paper and textiles. The environment ministry said to the World Trade Organization, "Large amounts of dirty... or even hazardous wastes are mixed in the solid waste that can be used as raw materials. This polluted China's environment seriously."
Latest government figures record that in 2015 alone, China bought 49.6 million tonnes of rubbish. The EU exports half of its collected and sorted plastics, 85 per cent of which goes to China. Ireland alone exported 95 per cent of its plastic waste to China in 2016. The same year, the US shipped over 16 million tonnes of scrap to China valued at over $5.2 billion.
Arnaud Brunet, head of the Bureau of International Recycling is despondent, the ban has been like an "earthquake" for countries dependent on China. "It has put our industry under stress since China is simply the largest market in the world" for recycled materials, noting that he expected exports of certain materials to drop by around 40 per cent. Brunet estimates global plastic exports to China could drop from 7.4 million tonnes in 2016 to 1.5 million tonnes in 2018, while paper exports is expected to fall nearly a quarter. Some are now looking at emerging markets elsewhere such as India, Pakistan or Southeast Asia but it could be more expensive than shipping waste to China.
The Sri Lankan Apparel Industry Suppliers Exhibition (AISEX) will be held from May 10 to 12 at the Sirimavo Bandaranaike Memorial Exhibition Centre, BMICH premises. Organised and managed by Lanka Exhibition and Conference Services in collaboration with the Sri Lanka Apparel Institute (SLAI), it aims to bring together suppliers and service organisations in the apparel industry and make it a platform where future development of the industry will help it become a major sourcing hub for the apparel segment by 2020. Held every two years, AISEX 2018, the eighth edition of the exhibition will bring together a range of players focused on the development of the industry. Reinvigorated by GSP Plus, the apparel industry is ready to take full advantage of the benefits permitted under the scheme.
Sri Lanka Apparel Institute Chairman Professor Lakdas Fernando explained, this is a benefit that is time stamped. As the country develops and reaches a higher per capita income, we will lose this opportunity. The time is now to make full use of what is given to the country. Sri Lanka has the potential of converting to a major supplier’s hub for the industry, with the added advantage and given its reputation of manufacturing high quality garments in the region, this is positive benefit that needed to be marketed and taken full advantage of, Fernando says.
AISEX will focus on a wide range of textile machinery, accessories and services worldwide and will provide manufacturers of all sizes a methodology to expand existing manufacturing methods and possibilities of increasing production volumes through state of the art innovative technology.
The South Asian apparel market is the second largest in Asia, after China. AISEX will also focus on generating new opportunities closer to home for small scale local designers and manufactures an open door to enter the market regional and international market. AISEX 2018 will provide the ideal platform for corporations to communicate amongst apparel related bodies in the region.
"Apparel sector has the potential to create highest jobs that any other sector can employ. For example, RIL reports $110 billion in assets and 250,000 employees across its various ventures. It employs five workers for each $2.2 million in assets. Shahi Exports, India’s largest apparel exporter, has assets worth $185 million and employs 106,000 workers in its apparel factories. It employs 1,260 workers for every $2.2 million in assets. In the same investment, Shahi Exports creates 252 times the jobs that RIL does. This is the power of textile industry we are talking about."
Apparel sector has the potential to create highest jobs that any other sector can employ. For example, RIL reports $110 billion in assets and 250,000 employees across its various ventures. It employs five workers for each $2.2 million in assets. Shahi Exports, India’s largest apparel exporter, has assets worth $185 million and employs 106,000 workers in its apparel factories. It employs 1,260 workers for every $2.2 million in assets. In the same investment, Shahi Exports creates 252 times the jobs that RIL does. This is the power of textile industry we are talking about.
Talking about the business potential, in 2015, the apparel export market was $465 billion. India exported $18 billion compared to China’s $175 billion. High wages are now forcing China to withdraw from this market. From $187 billion in 2014, its apparel exports have fallen to $158 billion in 2016. India should now just focus on taking on China’s place to gain major share.
The reason for stagnant performance is partly due to the policies which reserved apparel for production by small-scale enterprises. These enterprises were too small and their product quality too low to succeed big in the export markets. Since 1973, India’s investment policy confined large firms and big industrialists to investing exclusively in a set of listed ‘core’ industries, which were all highly capital intensive. Owing to this, big industrialists started looking at apparels sector as a not so profitable proposition. Though post liberalization in 1991, small-scale industries reservation was withdrawn, investment in apparel still remained off radar.
The need is to encourage global apparel firms exiting China to relocate in India, instead of Bangladesh and Vietnam. These firms bring in technology and management know-how to operate on large scale having access to global markets. The country needs to create greater labour market flexibilities. There has to be a better balance between the interests of those who already have formal sector jobs, and those who seek them. Firms choose to stay small, operate informally and, thus, escape costly labour regulations.
Exports, especially in the apparel industry, have extremely tight just-in-time delivery schedules. This necessitates the rapid movement of imported inputs into the country and of export products out of the country. In order to achieve the same, trade facilitation needs to be given emphasis. Turnaround time of ships at ports needs to be brought down to a few hours as in Hong Kong and Singapore. Coastal Employment Zones (CEZs) offer a convenient avenue to bringing about these changes expeditiously within limited geographical areas.
To make the industry more competitive, indirect taxes paid by apparel exporters, including those on products outside the goods and services tax (GST) net, such as petrol, be expeditiously reimbursed in full. All competing countries follow this practice and the World Trade Organisation rules permit it as well. The exchange rate has been an extremely sensitive concern for apparel exporters due to low profit margins on which they operate. Foreign investment and remittance inflows, which chase rupees, make them expensive. The Reserve Bank of India (RBI) needs to manage foreign exchange inflows such that the rupee does not appreciate unduly.
Federal Tax Ombudsman (FTO) Mushtaq Ahmad Sukhera has said increasing exports is the only viable solution to address the economic imbalance. Addressing the businessmen of the Value-Added Sector at Pakistan Hosiery Manufacturers and Exporters Association (PHMA) House on Friday, he assessed that widening trade and current account deficit and lowering exports were bad for the economy.
“Instead of taking measures to improve exports, the sovereignty has been mortgaged,” he said, while explaining the issuance of sukuk bonds and foreign loans.
Some time back annual exports had risen to $25 billion, which later declined to $20 billion, he said, and assessed, “If exports increased to $30 billion instead, the country had no need to go for foreign loans.”
The FTO said the government should quickly resolve the problems faced by exporters.
He noted the volatile exchange rates and said it would be difficult for the industry to determine prices for exporting goods.
He was dismayed over the low tax-to-GDP ratio and said our neighbouring economies have much better rates. He said India’s ratio was around 18 to 20 per cent of the GDP. Even Bangladesh and Sri Lanka have better ratio than Pakistan, he decried.
The FTO said there was a trust gap between the Federal Board of Revenue (FBR) and taxpayers. “The tax machinery has created trust deficit and people do not want to come into the tax net,” he evaluated.
The FBR should change its priorities and pursue potential taxpayers, instead of harassing existing ones. “Once an audit notice is issued, a taxpayer faces problems,” he explained.
The Ombudsman asked the FBR to change its attitude. “The FBR should change audit parameters and instead of harassing the genuine taxpayers, the priority should be identifying suspicious transactions,” he suggested.
The currency and continuing disruptions due to demonetisation and GST remain to haunt the economy despite some contrary beliefs that a strong rupee is good for the economy as it makes imports cheaper.
While India’s exports grew by 11.2 per cent, imports rose in April-November 2017, recording a growth of 22.4 per cent in FY17, however, on the other hand, imports were almost steady and grew by just 0.9 per cent.
Hardening crude oil prices resulted in imports growing at a faster rate than in FY17; for two earlier years, oil imports contracted in value terms. While oil imports rose by $11.7 billion in April-November, overall imports grew by $54.5 billion.
If one exempts gold and oil, it shows that, for the April-November period, FY18 imports grew by a phenomenal 29.8 per cent; in contrast, during FY17, non-oil non-gold imports rose a marginal 1.4 per cent.
Since consumer demand hasn’t grown in the first eight months of FY18, one can assume that increased imports have largely replaced domestic supplies, either because local supply chains continue to be hit and/or because, with the rupee continuing to strengthen, imports have become 5 to 6 per cent cheaper.
In FY17, the rupee was more stable (66.2 to the dollar) on January 3, 2016; 68.14 on January 2, 2017; and 63.69 on January 1, 2018. With the current account deficit currently looking troubling and estimates show it at over 2 per cent of the GDP for FY18, this is definitely a cause of concern for the government. This is where issues like India’s high interest rates come in since they make India more attractive for foreign debt money.
The same supply-chain problems, along with the rupee, are clearly affecting India’s exports. Crisil noted that while India’s exports grew be 9.5 per cent in April to October 2017, Vietnam’s exports rose by 23.8 per cent, South Korea’s by 18.5 per cent, Indonesia’s by 17.8 per cent in the same period, however, at 7.4 per cent, China’s exports grew slower than India’s but the base is so much higher.
The apparel export body has made around 8-10 demands ahead of the Budget 2018. Reeling from a continued fall in export growth and marginal refunds on the goods and services tax (GST), the Apparel Export Promotion Council (AEPC) has written to the government, seeking 12-15 types of relief. They want the duty drawback and the refund of state levies (ROSL) to be restored to pre-GST levels, and also exemptions from the new indirect tax for exporters.
Growth of apparel exports has clocked a negative 39 per cent, 11 per cent and 8 per cent, respectively, in October, November and December last year, according to H K L Magu, chairman, AEPC.
In the run-up to the Union Budget, the export body has sought incentives from the government, to boost exports. It wants the duty drawback on cotton apparels to be restored to pre-GST rates of 7.5 per cent and the ROSL of 3.5 per cent. They also want to be exempted from 18 per cent GST for air freight.
The duty drawback fell to 2 per cent after the GST roll-out last year, ROSL to 1.5 per cent on cotton apparels, and 2.5 per cent and 1.5 per cent, respectively, on different man-made apparels.
Till September, when the previous rates were applicable, apparel exports grew in double-digits. However, October onwards, exports began taking a hit.
SIDCOs trade centre near Panchapur and SIPCOTs industrial park near Manapparai have entered a crucial stage in attracting and promulgating investments in Trichy, however, the long pending demand to establish a mini textile park (MTP) seems far from becoming a reality. Despite the fact that the scheme to establish a MTP in Trichy was announced in 2015, there has been no progress to source required land. Sources in the state handlooms and textiles department said that Sethurapatti near Srirangam could be a possible site for establishing the park. The western districts such as Coimbatore, Karur and Tirupur are renowned for textile manufacturing, however, there districts are reportedly reaching a saturation point. Industry experts in the small-scale industries disclosed that investors are looking forward to expand their presence in non-textile manufacturing districts such as Trichy given the availability of land/manpower coupled with. A floating population of two lakh people per day largely due to the well-known temples situated there.
Earlier in 2017, officials with the regional office of textile commissioner, functioning under the Union Ministry of Textiles assessed that Trichy has immense potential to market textile products.
Following this assessment, the state government in 2015 announced that a mini textile park spread over 10 acres would be established in Trichy, but unfortunately nothing much has done as OD date.
President of TIDITSSIA, N Kanagasabapathy noted. "In Puthanampatti village near Manapparai, units with readymade manufacturing cluster are even exporting their products. Provided we establish a proper platform with financial and technical support for interested investors in textile sector, not just in Trichy but in central districts there is a possibility for textile industry to flourish.
An official source from the handlooms and textile department said, "Ten acres of land required for the textile park is yet to be identified and also the investment potential is yet to be studied."
Industrialists suggested that 10 acres of land in SIPCOT industrial park in Manapparai should be earmarking for the project.
Three major investment catalysts for Trichy are: SIDCO trade centre, 9.4 acres in Panchapur, status, SIDCO awaits enter-upon permission to commence construction work; SIPCOT Industrial Park, 1,050 acres, Manapparai, status, land acquired but environmental clearance needed to prepare layout for site; Mini textile park, minimum 10 acres needed, status, land yet to be identified.
Challenging market conditions dampened the mood at the London Textile Fair’s latest expo, but the show maintained a steady stream of buyers and exhibitors walk in.
Around 475 exhibitors showcased their products at the two-day spring 19 edition, held at the Business Design Centre in Islington on 10th and 11th January. Another 20 to 30 businesses were on the waiting list to exhibit, the show organiser John Kelly reportedly said. Designers and buyers from brands and retailers such as Asos, Ted Baker, Vivienne Westwood, Hobbs, Boden, Topshop, Sunspel and Private White were seen. The print and design area were popular this season.
Exhibitors and buyers alike were all praise for the show given the quality of fabrics on display, and its timing, as it takes place before rival shows Milano Unica in Milan on 6 to 8 February and Première Vision in Paris on 13 to 15 February. Financial issues and growing cost pressures continued to be areas of concern on attendees’ minds.
John Kelly assesses, “The mood is not super-positive – it’s not a boom year [for the industry]. I don’t want to sound too doom and gloom, but the general message is: The industry is OK. Christmas hasn’t been terrible, but it has been slightly down. There just isn’t any excitement at the moment.
“The market continues to be affected by price rises and the euro exchange rate against the dollar. A lot of mills are also trying to be more eco-friendly and sustainable, at a big cost for them.
“Larger manufacturers are making decisions on where to source based on whether a mill can provide sourcing information from the beginning of the process. “It’s an expensive thing for mills to do – you have to bring in [external] people, check the weaving, spinning, finishing, dye stuffs … They’re all working towards it, but sustainability is an important issue.”
On the stands, eco-friendly fabrics continued to form a key trend for spring 19. Other popular lines included sand-washed silks, jacquard fabrics and laminated technical materials. “This edition has been busy for us – we’ve seen a lot of interest in cashmere and wool-linen blends for spring 19. Interest in heritage is increasing and there has also been rising interest in sourcing locally because of the Brexit factor, so our orders are up and we’re confident going into the next season. That said, it all depends on currency rates, which remains a big challenge in the industry,” he added.
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