FW
Returning to the Javits Convention Center in New York City from July 12th to July 14th, will be Apparelsourcing USA. The event will once again open its doors to both exhibitors and attendees alike. The show will feature over 220 international exhibitors from nine countries. As the only event on the East Coast to focus on finished apparels, contract manufacturing and private labels, Apparelsourcing USA connects suppliers specializing in ready-to-wear for men, women, children and accessories. The summer’s edition promises to be the most exciting, with the debut of a new Mexico pavilion, a revamped show floor layout and the new Fashion on Display Trend Cafe.
Apparelsourcing USA gives the perfect opportunity to source complimentary products and manufacturing services from over 220 exhibitors representing nine countries, including: USA, China, Bangladesh, Kenya, Taiwan, and more. Alongside returning pavilions from Turkey and Pakistan, a brand new Mexico Pavilion will debut on the show with several exhibitors specializing in lingerie and active wear for men and women. Over three show days, visitors will have the opportunity to explore products across 12 end-use groups, including: women’s wear, menswear, active wear, knits, woven, denim, childrens wear, intimates and more.
In addition to exploring services and resources from a variety of global suppliers, attendees will experience new product category designations viz. ‘casual’ and ‘formal’. This new and simple categorization of product offerings will allow visitors easy navigate on show floors. New to Apparelsourcing USA, the Fashion on Display Trend Cafe will provide a preview of the best of exhibitors’ manufacturing capabilities and finished apparel products. In addition, the Fashion on Display Trend Cafe will offer a convenient rest area.
Textile spinning mills in India have started importing cotton as prices of the commodity are ruling higher in the local market compared to the international market. Mills have started buying West African cotton as costs are lower. Two leading textile mills in south India have bought about two lakh bales each of West African cotton in the past two or three months.
With imported cotton, mills get better credit facilities and lower interest rates. Yarn productivity is also good with imported cotton. The cost of imported cotton is lower by at least Rs 2,000 per candy. Moreover the quality is also better. Many spinning mills, including smaller ones with a capacity of 10,000 spindles, are importing cotton now.
While local cotton prices have surged by 12.9 per cent between April and mid-June, they have increased by only six per cent in the international market. Textile mills in the country consume around 25 lakh bales of cotton per month. Mills in the south alone use about 10 lakh bales a month. With the area under the crop declining on the back of a drought in Maharashtra and Karnataka, and pest attacks affecting output in Gujarat, Punjab and Haryana, cotton production is expected to fall to a five-year low of 352 lakh bales for the 2015-16 season.
The Indian textile industry is facing tough challenge from China and Pakistan. Mills have been suffering from inadequate working capital and have been virtually pushed to a corner with raw materials becoming scarce. As cotton prices shoot up to Rs 5,800 a quintal, the textile industry is reeling under severe pressure and facing scarcity of raw material. The export market is not-so-favorable and cost of operations is rising.
The situation is virtually the same in all textile industry hubs in the country. Gujarat is somewhat better off but the situation in Telengana, Andhra Pradesh and Tamil Nadu is quite bleak.
Therefore, the industry demands an increase in export incentive to seven per cent from the present three per cent and finance at seven per cent in order to survive and remain competitive in international markets. The industry fears that if it fails to be competitive globally, the commodity will have to be sold domestically, triggering a glut. This could lead to huge losses for the industry and a drop in cotton prices in the ensuing season.
The textile industry wants a three per cent incentive for yarn, five per cent for fabrics and seven per cent for garments.
According to Roger Hubert, Chief Representative of Swedish retail giant H&M Group in Bangladesh, remediation or relocation of units will not take place in, if there is no guaranteed loan from the government. As of today, there is no such fund or guarantee provided to the commercial banks, so they can issue low-cost loans to small and medium factories under a covered risk, he added.
At the launch of ‘Remediation financing in Bangladesh's readymade garment sector’, he said 71 per cent of remediation work has been completed in more than 250 factories that H&M sources from. The International Labour Organisation (ILO) and International Finance Corporation (IFC) jointly launched the report, while retailers, garment makers, exporters and diplomats were present.
The rest 29 per cent of remediation work is in progress as the factory owners have opened letters of credit to import safety equipment, added Hubert. Owners of about 3,800 factories in the country are now remedying their units as per the recommendations made by the engineers of Accord, Alliance and government sponsored inspections, to strengthen workplace safety. So far, more than 60 per cent of the work is complete, according to data from the Department of Inspection for Factories and Establishments (DIFE). The relocation of factories from Dhaka to nearby areas is not an easy task, but it is possible, said Hubert.
Indian employees are more confident about the state of their economy than the Chinese. Nearly 50 per cent employees in India rate the economy good to excellent compared to 28 per cent Chinese employees rating their economy good to excellent. Employees in India are more optimistic about the next 12 months with regard to skill development and career progression. India and China are competing with each other to retain the fastest growing economy tag.
However, Indian employees are less satisfied about certain aspects of their job compared to their counterparts in China. They are less satisfied about salary, opportunities for promotion and job security. About 44 per cent Indian employees cite new skill development as the top reason for conducting a job search, while 43 per cent of employees in China seek work-life balance. In China, keenness to attain a healthy work-life balance is prioritised over new skill development, which seems to be of greater significance to Indians. Both countries showcase a willingness to explore working abroad.
Overseas employment is generally seen as an attractive option across both nations. In India it’s 64 per cent while in China it’s 59 per cent. Indians continue to be positive about the opportunity to develop new skills and the possibility of getting a promotion this year. In contrast, employees from China are slightly less confident.
Ram Singh, a Punjab Cadre IPS officer has been appointed the new secretary general of Apparel Export Promotion Council (AEPC). Singh is presently the director, Ministry of Textiles. He has been given additional charge, as the secretary general of AEPC.
Singh is a decorated 1994 batch officer and a graduate with ‘Institute Silver Medal’ for holding 1st rank from the Indian Institute of Technology (IIT), Delhi. He has worked in myriad departments like commissioner of police in Jalandhar & Amritsar, IGP/Border Zone, Amritsar & DIG/Border Range, Amritsar and Senior Superintendent of Police in various districts in Punjab.
His achievements include Police Medal for Meritorious Service in year 2011, two UN Medals for exceptional contributions to United Nations during his posting in UNMIK (United Nations Mission in Kosovo), DGP Commendation Disc for outstanding Service in 2011 and graded for “Outstanding-Exceptional Performance”, the highest possible grade in UN Annual Confidential Report during his posting with UNMIK (United Nations Mission in Kosovo).
About $929 million has been estimated to be needed for fixing the identified flaws in Bangladesh's readymade garment (RMG) factories assessed by the three initiatives, according to a report released recently. Fire, electrical and structural integrity in some 3,778 garment factories has been assessed by Accord, Alliance and National Initiative.
According to the report, the last two years have seen remediation activities begun in earnest, reducing the remaining remediation costs to around $635 million with $262 million in structural, $201 million in electrical and $171 million in fire related issues. It was estimated that over the last two years, remediation activities worth some $ 294 million have been carried out in Bangladesh's RMG sector through actions Accord, the Alliance and individual factory owners.
The study also included a review of Bangladesh's banking sector and the credit facilities recently developed by international organisations such as IFC, JICA, AFD and USAID, which have made available some $ 187 million specifically for RMG remediation.
The report titled ‘Remediation financing in Bangladesh's Ready Made Garment Sector: An Overview’ revealed that the total remaining financing gap for factory remediation is around $448 million. The report was jointly commissioned by International Finance Corporation (IFC) and International Labour Organisation (ILO) to assess the cost of safety remediation for structural, electrical, and fire safety work in RMG factories, as well as the ability of factories to finance these works.
High bank interest rates and a lack of financing are the major obstacles for remediation of the readymade garment factories in Bangladesh. Remediation involves correcting structural or procedural defects. Factory owners are unable to get finance due to high rates and complicated procedures.
An interest rate that ranges from 9 to 18 per cent is a barrier to carrying out remediation, while the rates are even higher, from 9 to 16 per cent, for larger enterprises. Readymade garment owners also need support to present audited balance sheets, profit and loss statements and cash flow projections to banks and prospective investors to avail of loan facilities, which is also another barrier to obtain financing.
Most factories complete 80 per cent of their remediation work on their own financing. However, these are factories working with renowned brands and they don’t face financing problem. Getting remediation finance is very difficult for small factories due to complex documentation.
Safety remediation for structural, electrical, and fire proof work in readymade garment factories involves a cost and the question is if factories have the ability to finance this mega task. About 75 per cent of factories in Bangladesh do not need large structural retrofitting work.
A denim expo will be held in Bangladesh on November 8 and 9, 2016 where about 8,000 visitors, including buyers and denim connoisseurs, from across the world are expected to attend. Around 100 exhibitors, including readymade garment manufacturers and denim fabric mills from Bangladesh and 17 other countries, will display their products.
Participants include entrepreneurs from the apparel sector, apparel traders, fashion professionals and industry stakeholders from Europe, US, UK, Germany, Italy, India, China, Pakistan, Vietnam, Singapore, Thailand, Turkey, Japan, Spain and Brazil.
The last edition of the denim expo held in April this year was attended by 4,000 trade visitors from around the world. A total of 50 participants, 37 foreign companies from 13 countries took part in the expo to display their products. Bangladesh Denim Expo, a non-profit and non-government organization, organises the international denim trade show in Bangladesh to promote Brand Bangladesh in the global denim industry.
On the backdrop of the huge response from exhibitors and visitors, the expo size has been doubled. This is the fifth edition. For the first time, the expo will be held in two halls. The expo acts as a hub for players on the international denim scene to mingle with colleagues, make new contacts and broker deals.
www.bangladeshdenimexpo.com/
Apparel Training & Design Centre (ATDC), with its affordable courses for skill development, has decided to empower the youth. To spread awareness regarding them a marathon ‘Run for Skills’ was organised by the Centre. The marathon started from ATDC Noida and culminated at the same place covering major parts of Noida, in-between stopping at Metro Hospital and Nehru International Public School. The marathon was flagged off by district magistrate Nagendra Pratap Singh. The event was put together to move one step closer to achieving the dream of ‘Skilled India’ by the team led by Lalit Thukral, Convenor, LMC, Noida Cluster, Darlie Koshy, DG & CEO, ATDC.
“The goal of Skill India is to create opportunities, space and scope for the development of talent of Indians and identify new sectors for skill development. It aims to provide training and skill development to 500 million youth by 2020, and ATDC should be well appreciated to move one step forwards towards Skill India goal,” said Singh. Added Koshy, “As a vocational training network, we at ATDC realise the importance of imparting skill to empower the unemployed youth. It is not just about skilling them; it is about making them self-confident and ready for the future. ” Over 150 students, volunteers and faculty members took part in the marathon.
With the vision of “Imparting skills and improving lives”, ATDC is the single largest vocational training provider for the apparel sector in India. Under the leadership of Koshy, it has got the ‘Best Vocational Training Provider (VTP) Training 2016-Gold’ by ASSOCHAM. The staff of ATDC has been working to train the youth and women for the last 25 years. This event reflected their goal of skilling as many people as possible and making them self-reliant.
