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"The global market for denim is forecasted to reach $64.1 billion by 2020. The Indian denim industry has shown continual growth over the years and currently the country boasts of a denim manufacturing capacity of around 1.1 billion metres per annum. Its utilisation levels are pegged at 80-85 per cent. Despite the impressive statistics, the Indian denim manufacturing industry contributes 5 per cent to the global scenario, reflecting the overall performance of the textiles industry"
Although India is the second largest textile manufacturer and also the second largest exporter globally, it contributes a minuscule 5 per cent towards India’s overall exports. According to a report by UN Comtrade in 2013, India’s textile exports were estimated at $40 billion whereas China’s were pegged at $274 billion. There is a huge gap in the current capacity and potential of the textile sector. A white paper by Suryalakshmi Cotton Mills says that the “Make in India” initiative of the Indian government is targeted at bridging this gap effectively while catapulting the country into becoming a textile export powerhouse.
India to emerge a strong denim exporter
The global market for denim is forecasted to reach $64.1 billion by 2020. The Indian denim industry has shown continual growth over the years and currently the country boasts of a denim manufacturing capacity of around 1.1 billion metres per annum. Its utilisation levels are pegged at 80-85 per cent. Despite the impressive statistics, the Indian denim manufacturing industry contributes 5 per cent to the global scenario, reflecting the overall performance of the textiles industry. However, according to industry experts, denim is the only segment in the Indian textile industry that has the potential to grow manifold.
According to the Suryalakshmi report, an increasing number of global denim manufacturers are looking at India as an emerging denim export region owing to its quality standards, cost effectiveness and large pool of skilled work force. On the domestic front, the denim wear market is driven by increasing disposable incomes, westernisation of work culture and the ensuing rise in the popularity of denim jeans as business casual wear. With increase in globalisation, young India prefers denims as a part of their essential daily wear.
India offers numerous advantages to denim manufacturers. It is among the handful of countries that has a presence across the textile value-chain, from cotton to garments. In addition, it has a huge skilled workforce and offers quality products at competitive costs. To remain competitive in the globally, most textile companies have adopted global standards of safety and environment compliance. Additionally, the country’s demographics with an expanding purchasing power and modernising fashion sense further contribute to the sector’s growth. In fact, India has been ranked as a top destination for retail investments among 30 global emerging markets.
Challenges to denim manufacturing
Despite Indian denim manufacturing industry witnessing rapid growth in the last 4-5 years, technological expertise is still an issue. For the “Make in India” initiative to be successful for the textile sector, it is important that the government provides specific impetus for the growth of the indigenous denim industry. The technological integration of the manufacturing process coupled with capacity build-up can result in a rise in production of the fabric leading to enhanced domestic consumption and exports.
The Indian denim industry stands to benefit immensely from the ambitious “Make in India” initiative, the report points out. The vision of the programme has the potential to overhaul the segment’s perception and the country’s contribution in the world denim scenario. However, to turn this vision in to reality, India’s denim manufacturing segment needs to be equipped with facilitating mechanisms. Even more important is the effective implementation of these mechanisms. Once this is done, the strength of domestic Indian denim markets as well as its denim export capabilities will remain unparalleled.
The country offers multiple advantages as a denim manufacturing and outsourcing hub: India is among the few countries to have a presence across the denim manufacturing value chain – right from cotton production to denim garment manufacturing, It has abundant availability of skilled manpower and raw material, investments in best-in-class technological infrastructure, adoption of global technologies and manufacturing know-how, evolving fashion sense and product intelligence to compete in global markets, burgeoning middle-class with a rapidly expanding purchasing power and adherence to global standards of safety and environment compliance norms.
Initiatives such as the Make-in-India augur well for the development of this industry since they aim to promote innovation in the manufacturing sector and provide impetus to the sector’s growth by building best-in-class manufacturing infrastructure. However, for the denim sector to benefit from the outsourcing movement away from China, India’s policymakers need to formulate specific policies that cater to the segment’s demands.
www.suryalakshmi.com
The International Sourcing Expo Australia held from November 16 to 18, 2015, provided an outstanding platform for businesses to connect and transact in a face to face environment. Delivering an array of products and ranges from manufacturers and suppliers of apparel, textiles and accessories across multiple categories, this Australia’s largest and most comprehensive event was co-located with the China Clothing & Textiles Expo.
The event showcased 466 companies representing 12 countries. It attracted an audience of high quality decision makers from industry including manufacturers, importers, agents, wholesalers, distributors and retailers of all sizes. Entry to the event was restricted to trade only and visitors qualified for entry if they worked in the fashion, clothing, textiles, accessories, footwear or related industries. Educational institutions were also entitled to attend the event. Representation from all elements of the sourcing value chain ensured a comprehensive platform for networking and trade.
Buyers discovered new ranges representing over 20 categories on the expo floor, delivering more options than any other event in Australia. The 11 part seminar series presented by Australian and international experts drew almost 2,000 attendees across the three day event. This important value add to the event provides a platform for the presentation and discussion of topical issues for the industry. The next show will be held from November 15 – 17, 2016 at the Melbourne Convention & Exhibition Centre.
www.internationalsourcingexpo.com
Shima Seiki (Hong Kong), subsidiary of leading Japanese computerised knitting machine manufacturer will be holding a private exhibition of its machinery solutions in Hong Kong coming January.
The Shima CrossTex exhibition presents connectivity as a key theme, and will be held in cooperation with several note- worthy suppliers who will present their services at individual booths, offering visitors the opportunity to expand their network portfolio by connecting with businesses upstream of the supply chain.
CrossTex is also a showcase for the company’s latest selection of computerised flat knitting machines and other textile- related machinery, which received positive response from visitors to Shima Seiki’s booth at ITMA 2015 held in November. The new flagship Mach2XS Wholegarment knitting machine with SlideNeedles mounted on four needle- beds and spring-type sinkers, as well as the compact SWG-N2 series Wholegarment knitting machine that offers increased colour capacity as well as the capability for producing industrial textiles will be on display. Also SRY123LP features a pair of loop presser beds mounted above a conventional V-shaped needle-bed and is capable of producing unique knit fabrics with woven textures as well as technical textiles.
The new SVR workhorse series resets the industry benchmark for shaping machines in the tradition of Shima Seiki’s legendary SES and SSG machines. Also on display will be Shima Seiki’s P-CAM series multi-ply cutting machine and APEX-T design system for weaving. Demonstrations will also be performed on Shima Seiki’s SDS-ONE APEX3 3D design system that is at the core of the company’s ‘Total Knitting System’ concept. With comprehensive support of all aspects throughout the knit supply chain, APEX3 integrates knit production into one smooth and efficient workflow from yarn development, product planning and design to machine programming, production and even sales promotion.
www.shimaseiki.com
With athleisure becoming a huge hit among the consumers, denim companies are making changes in their collections to create an appeal. The New Year is just around the corner and industry insiders are of the opinion that unique and exclusive designs will rule the denim scene next year and that there is no alternative to a good pair of jeans.
One trend that has already emerged and is expected to continue is 70s-inspired designs that were ruled by flared jeans, culottes, and denim skirts. Designers are infusing their ideas to give these looks a modern touch with features like frayed hems, embroidery and hidden zippers. They are also taking inspiration from vintage 501 Levi’s to the old Maverick, Lee, Jordache, and vintage suede jackets to create something unique for the forthcoming seasons.
With consumer vying for something exclusive, raw denim is making headlines. Experts say that consumers are buying raw denim as a statement piece as well as rising awareness about side-effects of traditional washing methods. According to Ashley Guyatt, James Jeans social media strategist consumers are no more interested in typical pair of jeans but want styles like super-flares, cropped flares, very high waists, and multiple exposed buttons, among others.
www.levistrauss.com
Japan International Cooperation Agency (JICA) – the primary Japanese governmental agency responsible for technical cooperation component of Japan’s bilateral ODA (Japan’s Official Development Assistance) programme has signed Japanese ODA loan agreements with Bangladesh to provide up to 133 billion Yen for six major projects, with the readymade garment sector of the country coming under the first project.
The readymade garment sector is a main driver of the growth and comprises 80 per cent of the country’s exports. However, against a backdrop of fierce global competition and a lack of competitiveness in the industrial sectors, it will be more and more difficult for Bangladesh to achieve economic growth in a sustainable manner despite a stable 6 per cent growth for more than 10 years, Japan International Cooperation Agency (JICA) said.
The six projects to be funded by the Japanese agency include urban building safety and improving public services, encouraging industrial diversification and promoting economic growth by improving investment climate in Bangladesh, safer and efficient transportation, improving health service to a higher level and stable power supply, a press release issued by the Japan International Cooperation Agency noted.
www.jica.go.jp
A Bangladesh court has accepted the murder charge and has agreed to put several defendants in the case on trial over the collapse of the Rana Plaza which killed 1,135 workers, many of them making garments for Western retailers.
Senior Judicial Magistrate Md Al-Amin took the decision as he accepted the charges, which were filed in June by the criminal investigation department of the police. Forty-one defendants in total face charges over the April 2013 disaster at the complex, which housed five garment factories supplying to global brands. Plaza owner Sohel Rana is the principal accused. The court has issued an arrest warrant against those absconding and others, who are out on bail.
The incident, one of the worst industrial calamities put a question mark on safety conditions in Bangladesh. Duty free access to the west and low wages made Bangladesh one of the leading garment exporters with $25 billion a year industry. Estimates indicate that 60 per cent of the product are supplied to Europe, with 23 per cent heading to the United States and 5 per cent to Canada.
A recent study report of USA-based New York University's Stern Centre for Business and Human Rights has said that millions of people working in the readymade garment industry of Bangladesh still face unsafe conditions. The report also said that Bangladesh has more factories engaged in the global RMG business than stated by its industry.
The Supreme Court order banning the entry of goods vehicles into New Delhi has dealt a major blow to Surat’s textile traders. New Delhi is a major market for manmade fabrics including saris and dress materials made in Surat. Textile goods from Delhi, the country's biggest market for low cost saris ranging from Rs 200 to Rs 300, are further supplied to Chandigarh, Himachal Pradesh, Haryana, Bihar, Uttar Pradesh, Rajasthan and West Bengal.
No vehicle registered in 2005 or earlier will be allowed to enter Delhi even after payment of the enhanced green cess. For commercial vehicles registered after 2005, the cess has now been doubled from Rs 700 to Rs 1,400 for light commercial vehicles and Rs 1,300 to Rs 2,600 for heavy commercial vehicles.
Around 400 trucks leave for Delhi from Surat with textile goods daily. Most of these transport trucks are registered prior to 2005. Hence, these will not be allowed entry. These vehicles will have to dump the goods on the national highway outside Delhi.
It is believed the court order will increase the prices of textile goods supplied from Surat and other textile manufacturing centers. Wholesalers in Delhi will have to bear the extra expense of Rs 200 per parcel, one parcel contains roughly 150 saris and dress materials.
The All Pakistan Textile Mills Association (APTMA) Punjab Chairman Aamir Fayyaz has held the government responsible for continuous decline in exports from the country. He said that the government’s indifferent attitude towards the Punjab-based textile industry is disgusting. He added that the export data for November 2015 reveals that exports of cotton yarn and cotton fabric have dropped by 45 per cent and 22 per cent respectively against the corresponding period in quantitative terms consequently an overall decline by 15 per cent in value terms.
There is a nominal increase in clothing exports during the same period, he said and added that the textile exports constitute $8 billion of total exports against $4 billion of clothing exports. He said the government's apathy towards the textile industry has resulted into closure of 100 mills out of 270 mills across the Punjab.
Earlier, during a press conference, he said that government has imposed anti-dumping duty on cotton yarn while leaving the import of MMF yarns unattended, as the relevant notification does not cover them. The government has allowed long-term financing facility (LTFF), which would have no immediate impact because of the hostile environment for new investments. Finally, there is only one per cent reduction in the export refinance facility, which has not even been extended to spinning and weaving. He said that SNGPL has shutdown gas supply to the Punjab-based textile mills altogether, increasing the number of closed down mills to 70.
He also discussed in detail the prevailing adverse circumstances, including 40 per cent drop in cotton arrival in Punjab, unaffordable electricity tariff and burdening of industry with domestic taxes, and urged the government to do away with them without any further delay. While speaking on the occasion, former chairmen APTMA Gohar Ejaz urged the government to restore gas supply immediately besides tariff rationalisation of electricity to improve country’s exports.
www.aptma.org.pk
Intertek has launched chemical smart screening, a service designed to detect the presence of restricted substances in chemicals and auxiliaries used in the textile, apparel and footwear manufacturing processes. Intertek is a leading provider of quality solutions. The company provides a wide range of services, from auditing and inspection, to testing, training, advisory, quality assurance and certification.
Apparel and footwear brands and retailers need solutions to monitor and improve environmental performance across their entire supply chain. The chemical smart screening offers customers the opportunity to perform chemical analysis at the initial stages of production, while supplementing Intertek’s other chemical management solutions. It is a proactive approach to identify and prevent the use of harmful chemicals at the beginning of the textile, apparel and footwear manufacturing processes.
This preventive measure aims to benefit retailers and manufacturers by decreasing production costs, turnaround time and the need for re-handling. Only a single sample is needed to screen raw materials for around 400 common harmful substances carefully selected from major chemical regulations.
Chemical smart screening was developed to provide a solution, in the form of an extra layer of protection, to the challenges customers face as they balance the need for timely production with chemical management strategies.
www.intertek.com/
"As Steve Howard, Chief Sustainability Officer for Ikea, cotton was contributing most negatively to the company’s overall carbon footprint. However, years of efforts to implement grassroots advocacy and educating its primary cotton farmers to embrace the Better Cotton Standard are now showing results with some witnessing reductions in water and fertilizer usage of up to 50 per cent, while yields for many have increased by 5 per cent to 15 per cent."
The motive behind Better Cotton Initiative’s (BCI) is to make global cotton production better for the people who produce it, for the environment it grows in and for the sector’s future. Many leading brands such as Ikea, Adidas, Gap and H&M joined the initiative to support sustainable growing practices that rely on less water, fertilisers and pesticides, among other things. However, Ikea was the only brand that succeeded in its commitment to sourcing 100 per cent of its cotton from BCI sources by 2015.
Ikea implements its promise to source ‘Better Cotton’
Ikea requires 0.7 per cent of the world’s cotton supply for its sofa, upholstery and towels and all the cotton sourced by this Scandinavian company now comes from famers working in collaboration with the Better Cotton Initiative.
As Steve Howard, Chief Sustainability Officer for Ikea, cotton was contributing most negatively to the company’s overall carbon footprint. However, years of efforts to implement grassroots advocacy and educating its primary cotton farmers to embrace the Better Cotton Standard are now showing results with some witnessing reductions in water and fertilizer usage of up to 50 per cent, while yields for many have increased by 5 per cent to 15 per cent.
Ikea, in its efforts to reduce carbon footprint, started working closely with its supply-chain partners to reach individual farmers and switched cotton procurement to sustainable cotton sources, which created a market for sustainable growers. Howard said that the response was most positive in South Asia. The world’s largest home furnishing company sources most of its cotton from India, Pakistan, Turkey, China, Brazil and the United States. About 5 per cent of the supply comes from US sources, according to Ikea.
Efforts continue to further the Better Cotton cause
While the company has succeeded in achieving its initial goal, it will continue to take initiatives to increase the sustainable cotton production. In its aim to save water, the company supports drip irrigation techniques since they help in bringing down the amount of water sprayed onto soil where no crops are planted. According to Howard, Ikea is also long at diversifying the fibers it uses for textiles, both through recycling of previously used material and by increasing the ways in which it uses hemp and flax.
According to BCI, more than 25 million tons of cotton is produced annually. As of last year, about 7.6 per cent of that amount was produced using farming methods that met the Better Cotton Standard. As of 2014, more than 1.2 million small farming operations have embraced the initiative in 20 countries, which was ahead of schedule. By 2020, the target is 30 per cent of global production and five million farmers.
Among the leading apparel players committed to Better Cotton Initiative, Adidas Group aims to achieve its 100 per cent Better Cotton goal by 2018. In 2014, the company sourced about 30 per cent of its cotton fibre through BCI sources. H&M expects to reach its 100 per cent commitment by 2020 and as of 2014, 21.2 per cent of the cotton in products sold by the Swedish clothing retailer were organic, recycled or grown via BCI production methods.
Levi Strauss & Co is looking forward to achieving 75 per cent by 2020; as of April, the denim giant had reached 6 per cent. Whereas Marks & Spencer with a goal to reach 70 per cent Better Cotton by 2020; has said that one-third of its cotton comes from BCI, organic, recycle or Fair Trade sources. While Nike’s target was to source 100 per cent Better Cotton by 2020; as of a 2014 update, the company said it may take longer than expected to transition its cotton sources.
Bettercotton.org www.ikea.com
