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The Indian Institute of Corporate Affairs (IICA) is organising a two-day programme on “Supply Chain Management for Global Competitiveness” on February 8 and 9, 2016 at IICA, Manesar Campus.
SMEs and corporate houses from manufacturing as well as service sector like logistics, shipping lines, CHAs (importers, exporters, their clearing and forwarding agents), organised transport companies, directors and managers of supply chain management can benefit by attending this workshop. Members interested in participating in the programme can contact the IICA for details.
IICA is an institution established by the Ministry of Corporate Affairs, Government of India to provide holistic treatment of all issues that impact corporate functioning. The key to success for “Make in India” plan is to develop logistics and supply chain that support growth of global economy in general and nation in specific. There is a huge potential to make the country a global partner for manufacturing and services industries. The supply chain management and logistics are integral part of this development for the seamless network. The primary objective of this workshop is to present and discuss key challenges and management approaches for successful supply chain in global environment.
www.iica.in
The garment manufacturing industry in Fiji has traditionally been an active one. Now it is emerging as an alternative sourcing option for designers and brand owners in both New Zealand and Australia.
According to Adeshni Pratap, Image label Systems' Fiji based business manager, with just an hour's time difference with New Zealand and a couple of hours with Australia, Fiji has become the perfect near sourcing partner to these countries. Image Label Systems has been a part of the Fiji industry since the mid 1990's and has established itself as a strong market player.
Not only is Fiji's business environment compatible with Australia and New Zealand, but the country has the ability to provide a low volume range with fast turn-around time unlike its Chinese counterparts and is known for ethical business practices.
The manufacturers in Fiji cater to niche requirements such as sportswear, active wear and work wear. The country offers a flexible and local alternative to China and Asia with shorter lead times. Brand like Kookai and recently launched lingerie, lounge and swimwear brand Surfclub by Mount Maunganui-based Nicola and Claire retail products made in Fiji.
www.image-label-systems.com
After the successful edition of Cinte Techtextil China in 2014, Asia’s leading trade fair for technical textiles and nonwovens will be held in Shanghai from October 12 to 14, 2016 at the Shanghai New International Expo Centre. Last year’s fair saw 460 exhibitors from 22 countries visit the event.
The 2014 event was the largest ever Cinte Techtextil China in the fair’s history, and comprised pavilions from Belgium, Germany, Italy and Taiwan, as well as a European Zone. Together with regional pavilions from China, the fair displayed a full range of nonwovens and technical textiles in 12 different application areas. The fair also incorporated a debut Association Village bringing together 10 national technical textile associations from nine countries and regions.
Another important feature was the fringe programme. The 2014 edition featured an Innovative Showcase Area which introduced the latest innovations and achievements from various fast-growing application sectors in the industry. A range of seminars were held to help participants get introduced to new technologies through a series of informative presentations. The all-inclusive product profile of the fair saw 12,496 visitors from 61 countries and regions visit the fair.
According to the China Nonwovens & Industrial Textile Association (CNITA), the total output of technical textiles and nonwoven products in the country will reach over 22 million tons in 2020, double that of 2013. Cinte Techtextil China is organised by Messe Frankfurt (HK), CCPIT; and the China Nonwovens & Industrial Textiles Association (CNITA).
www.techtextilchina.com
Cotton farmers from Africa, especially from Burkina Faso, Chad, Benin, and Mali , have for long complained about the unfairness and imbalance in international markets that has contributed to the near collapse of cotton farming on the continent. But the challenges of the cotton industry are not just at the international level. The collapse of the local textile industry has led to the closure of textile mills, pushing the cotton farmers to absolute poverty. Efforts to revive the industry through subsidies, privatisations and joint ventures have been futile.
Middlemen have seriously affected the amount of profits trickling down to farmers. Tax enforcement is irksome and almost amounts to harassment. The demands for unnecessary levies and cesses are seriously hurting the sector. An agreement was arrived at in Nairobi to allow cotton farmers unfettered access to markets of rich nations, greatly boosting the few cotton farmers remaining. They will also have a level playing field with their counterparts from rich nations.
The meeting, the first of its kind to be held on African soil in more than two decades, brings good tidings, especially to cotton farmers. It will now be possible for these farmers to export their products to international markets duty free.
Chinese economic slowdown is set to hurt Indian spinning industry the most in the textile value chain. China forms 40 per cent of the total cotton yarn exports from India, which is likely to come down, creating an oversupply situation in the domestic market. After yarn, Indian apparel exports are also likely to be impacted due to a depreciation of the yuan.
Already, till December, apparel exports had been growing at seven to eight per cent against the anticipated 13 to 15 per cent. Much of the fall in the export growth rate is attributed to a decline in Indian apparel exports to markets like China, Europe and the US due to the overall economic slowdown.
Garment and made-up exporters from India are expecting stiff competition in global markets if China continues its depreciation spree. Cheaper exports from China may render Indian exports uncompetitive in the existing markets. Owing to the slowdown in Europe, Indian realisations have already been hit by 10 to 15 per cent. The cost of production cannot be trimmed further.
Of the total $40 billion worth of textiles and clothing exports from India, apparel exports are worth $16 billion, while yarn, fabric and made-ups put together amount to $21 billion.
Clothing manufacturers in Zimbabwe want the rebate for them to be extended by a year. They say if the government delays this extension, the textile industry will soon shut down. The clothing manufacturing sector presently operates at below 30 per cent capacity since the sector now only employs about 8,000 workers compared to more than 40,000 workers during its peak period. More than 200 clothing manufacturing companies have stopped operations.
Unscrupulous companies and individuals escape duty after they smuggle clothes into the country and label them as if they have been locally seamed. The country’s borders are very porous and aided by corrupt customs and immigration officials. Clothing manufacturers want the introduction of an import policy that would allow the sector to import textile materials duty free.
Zimbabwe’s textile and clothing sub-sectors consist of three components: production and ginning of cotton, transformation of lint into yarn and fabric, and the conversion of fabric and yarn into garments. Companies operating at up to 30 per cent capacity have severely been affected by the dollarisation and the influx of cheap products from abroad. They did not have the foreign currency to buy raw materials and pay wages and utilities from the start. There are some companies that are operating up to 60 per cent capacity and these are mostly those who have been into exports.
Garment makers in Bangladesh expect robust export growth this year due to continuity of political stability, a shift in work orders from China and economic recovery in major export destinations. They brim with confidence as exports grew significantly in the last three months compared to the same period a year ago. In December last year, apparel shipments rose 14.56 per cent year-on-year, in November 14.74 per cent and in October by 18.40 per cent.
Garment makers have a lot of work orders as buyers now prefer Bangladesh to China because of higher production cost and a shortage of skilled workers there. Political unrest in the first few months of 2015 took a toll on exports, as many international retailers could not visit Bangladesh and exporters had to delay or cancel shipments. But the situation is different now.
Brands are cautiously optimistic that the initiated upgrading of factory and workers safety will continue. As China’s manufacturing base is shrinking due to higher cost of production, garment orders are shifting to Bangladesh. So export target for the year are likely to be achieved.
Chinese manufacturing contracted for the 10th straight month in December as demand remained weak and factories trimmed staff and output. Another reason behind the rise in export orders is the improved economic situation in the US and the EU, two major export destinations for Bangladeshi apparel items.
"Bangladesh aims to invest $25 million in India to directly reach out to end consumers, which is expected to boost sales to $1 billion from the present $300 million over the next three years. There is a considerable demand for RMG products made in Bangladesh such as trousers, shirts, blouses, skirts, kidswear, cotton nightwear and jeans."
India and Bangladesh are competitors in apparel exports but at the same time trade is improving between these nations as rising number of Indian manufacturer-exporters are looking at setting up factories in Bangladesh. And Bangladesh on the other hand, Bangladesh is exploring the India as a potential growth market.
Trade improves but issues need resolution
Both countries are putting in efforts to improve ties. As Prime Minister Narendra Modi’s visited Bangladesh in June, he committed to look into the request for 50 acres of land either free of cost or at a nominal price in Gujarat to set up an apparel warehouse and Bangladeshi retail stores in the state. Bangladesh aims to invest $25 million in India to directly reach out to end consumers, which is expected to boost sales to $1 billion from the present $300 million over the next three years. There is a considerable demand for RMG products made in Bangladesh such as trousers, shirts, blouses, skirts, kidswear, cotton nightwear and jeans.
However, there are certain issues that the country is concerned about while doing business with Indian retailers. One is devaluation of the rupee against the dollar and second is non-payment of dues by the Indian retailers. For example, since 2011, a total of 22 small and medium exporters of Bangladesh supplied garment products worth $5 million to Lilliput India. However the company could not pay its dues. Another Indian retailer, Aldi too is yet to pay $1.2 million against export proceeds of the Bangladeshi exporters for the last couple of months.
According to the Export Promotion Bureau, Bangladesh, RMG export earnings from India in the first month of the FY 2015-16 decreased to $10.38 million from $14.28 million in the same month of the FY 2014-15 because of such concerns related to non-payment of dues.
Indian mills eye prospects in Bangladesh
Keeping the low labour costs and industry-friendly policies in Bangladesh in sight, Indian mills are planning to either establish their base in the country or provide better service to the growing garment manufacturing industry. Experts say the Bangladesh garment industry imports approximately 40 per cent of woven fabrics, which is expected to increase over the next five years. As of now, the largest portion of imported fabrics from India to Bangladesh is in denim fabric followed by shirting and suiting which includes non-denim bottom wear fabrics. Out of India’s 30 plus denim mills, the top 10 mills are exporting their denim fabric to Bangladesh.
However, there are problems like the trade policy between the two countries. While 48 types of textile products including finished garments from Bangladesh are being sold in India without any duty following the free-trade agreement signed between the two countries, yarn and fabrics exported from India attract duties in Bangladesh. This disparity will certainly affect the domestic garment producers/suppliers, as China too is using the trade route through Bangladesh to dump their products.
After China rolled back its cotton stockpiling policy it resulted in a decline of cotton imports. Indian cotton yarn exporters found Bangladesh as the next big market for exports. According to government estimates, lesser cotton imports by China may lead to as high as 41 per cent drop in shipments from India this year. India expects Bangladesh to increase cotton imports, which could beat the slump in Chinese imports. As of now, Bangladesh buys around 55-60 lakh bales from India.
A global business summit was held in West Bengal, January 8 and 9, 2016. Textiles and clothing were one of the focus industries at this summit. The Apparel and Export Promotion Council for the first time sent a delegation while national and state industry leaders were delegates and panelists. Leading retail chains like V Mart, Lifestyle participated in the deliberations. A roadmap was discussed for making Bengal a major hub for clothing and textiles in the coming five years and increasing its share of Indian textiles from five to 10 per cent. Around 13 textile parks were launched under Project Texpro Bengal. The project would provide industry land, infrastructure, single window clearance, environment compliant infrastructure, power apart from a host of subsides (capital, land, stamp duty, labor, power etc).
Among the associations which participated were the Apparel Export Promotion Council, Confederation of Indian Textile Industry, Federation of Hosiery Manufacturers’ Association of India, Cotton Textiles Export Promotion Council, Clothing Manufacturers’ Association of India, Bengal Hosiery Manufacturers Association, Chamber of Textile Trade and Industry, Eastern India Garment Manufacturers and Exporters Federation, West Bengal Hosiery Association, West Bengal Bleachers and Dyers Association and the Intimate Apparel Association of India.
According to exports figures released by the Bangladesh Garment Manufacturers and Exporters Association (BGMEA),the country's apparel exports to some potential non-traditional markets declined considerably during the first half (H1) of the current fiscal year 2015-16, despite posting an 8.13 per cent growth to all the new markets during the corresponding period of last fiscal.
Exports to Brazil and Turkey dropped by 24.25 per cent and 6.47 per cent respectively. Shipments to China, Japan and Russia recorded a slow growth of 0.40 per cent, 3.99 per cent and 2.16 per cent respectively. However, the total export of ready-made garment (RMG) products to the new markets grew by 8.13 per cent with earnings worth $2.01 billion during the July-December period of the FY '16.
Bangladesh's exports to the new destinations witnessed more than 20 per cent growth from FY 2011-12 to FY 2013-14. The new emerging markets included Australia, Brazil, Chile, China, India, Japan, Korea, Mexico, Russia, South Africa and Turkey. Knit products export to Brazil, China, Russia and Turkey fell drastically by 36.79 per cent, 16.95 per cent, 8.21 per cent and 4.85 per cent respectively during the first half of the current fiscal compared to that of the corresponding period of last fiscal, data revealed.
Similarly, woven products export to Brazil also witnessed a 6.22 per cent decline, 0.18 per cent to India, 5.16 per cent to Japan and 7.10 per cent to Turkey during H1 of FY 16.
Industry experts are of the opinion that the sector’s dependency over cotton-based products and lack of effective efforts for product diversification and new market exploration as well as shortage of specialised skilled workforce, poor infrastructure and entrepreneurs' unwillingness to take risk are some of the factors responsible for the limited product exports.
www.bgmea.com.bd
