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The Director General (DG) of Nigerian Textile Manufacturers Association (NTMA), Hamma Kwajaffa has disclosed that the country currently spends over $4 billion annually on importing textiles and readymade clothing, despite the government’s intention to revive the textile sector in recent times. Textiles used to be Nigeria’s foremost industry and the second largest employer after the government. Then it used to use indigenous raw materials such as cotton.
Kwajaffa is of the opinion that Nigeria has the potential to produce textiles for the local market of 170 million people. It also exports textiles to the ECOWAS market of 175 million people as well as to the developed world such as the United States under AGOA and EU GSP scheme which Kenya, Ethiopia, Lesotho, Madagascar and a number of African countries are already exploiting. The prevailing unprecedented harsh environment has undoubtedly dealt a serious blow to the already fragile industry. He said unless urgent steps are taken by the government to address key issues raised by the industry, the ray of hope that had arisen from the recent government initiatives may be lost.
Influx of smuggled goods continues to flood major textile markets. It not only undermines the local industry but also steals their jobs and importantly deprives government of revenue.
Ahmedabad-based Chiripal group company Nandan Denim’s net profit for the first quarter ended June 2016 is Rs 15.97 crores as against Rs 15.50 crores for the corresponding quarter a year ago, a rise of three per cent. The company's net sales for the period stood at Rs 300.39 crores, a rise of seven per cent over corresponding net sales of Rs 280.51 crores last year. Nandan started in 2004 has a capacity for 120 million meters a year.
Nandan makes products from three ounce to 15 ounce. It has backward integration of spinning and fancy attachments. It has economies of scope and scale. It gets value addition from fabrics. Its response time is fast. Plans are on to shift from being a denim manufacturer to a fashion driven brand. The aim is to have growth with value. The group turnover last year was Rs 2500 crores and Nandan’s share was Rs 1200 crores.
The company expects with much larger production capacities and product baskets it would be optimally placed in competitive markets to cater to the larger demand arising from India and overseas markets.
The Ministry of Textiles is celebrating ‘Colours of Independence (Azadi Ke Rang)’ on the occasion of the 70th Independence Day. The Ministry has chosen 70 locations across the nation to infuse the passion of freedom and patriotism among Indians especially the youth from August 9-15.
Over 60 per cent of India’s population is youth and the Ministry of Textiles wants to relate to them the importance of this born freedom which has been achieved after years of struggle by our freedom fighters. On this occasion, textiles minister Smriti Irani congratulated the nation and urged the people to thank and honour our defence forces who continuously fight for the safety of India as we are safe in our homes only due to them.
A flex board of 12ft x 9ft, created with khadi canvas has been put up in a prominent place in each identified location for view of the general public to express their views for the Independence Day. People can participate through social media network also. The mounted fabric with ‘Colours of Independence’, as expressed by the public will be displayed for one week at various locations across the Nation.
Millennials aren’t wearing jeans any longer. They are switching from the traditional denim jeans to stylish (and far more comfortable) sweatpants or yoga pants from Lululemon, Nike or Under Armour. And it’s a trend that is definitely starting to manifest itself on retail shelves as well, as a recent study by Synchrony Financial revealed. Nearly 80 per cent of those surveyed said they have worn athleisure clothing defined as casual clothing, like yoga pants, sweatpants and hoodies on occasions other than working out while 69 per cent saying they wear athleisure in place of jeans at least once a week.
Apparel retailers should consider investing in the new trend of customers wearing yoga pants to the studio and beyond, said the Synchrony study. Not long ago, a Morgan Stanley study in October 2015 too had found sales of footwear and sports apparel have grown by 42 per cent over the past seven years to become a $270 billion industry.
Emerging markets like China, where health and fitness trend is just beginning to take off, are also expected to fuel growth in the coming years. Morgan Stanley estimates that the industry could see about 30 per cent growth or $83 billion in new sales by 2020.
But growth has come at the expense of traditional denim jeans as athleisure is much more acceptable nowadays. Sales of athleisure make up 28 per cent of all apparel purchases among teens, up from 6 per cent in 2008. It’s more popular and selling better than denim among upper-income teenage women, with athleisure sales amounting to 15.6 per cent of all sales among teenage girls in the Spring of 2015 compared to just 9.1 per cent for denim.
Even Levi’s, has started feeling the heat with Bloomberg noting the company has seen its sales dip by several billion over the past couple of years while its stock too have dipped.
The Karnataka government plans to revive the state-owned Karnataka Handloom Development Corporation (KHDC) and Caurvery Handlooms. Along with, it also plans to transform the handloom industry into an organized profession. According to Karnataka Commissioner for Textile Development R Raju this initiative will benefit 80,000 weavers and 600 handloom cooperative societies. Currently, there are 227 cotton, 88 silk and more than 50 woollen co-operative societies operating in the State that make numerous products.
At present, the government has ensured the market linkage for handloom products such as uniform cloths, bed sheets and blankets to school children in the State, which ensures business to the tune of 100 crore annually. In the next two years, products of KHDC and Caurvery Handlooms will be aggressively marketed.
Plans are also afoot to market Ilkal sarees, Malakamuru silk sarees and Udupi cotton sarees which have acquired GI (Geographical Indication) accreditation for their uniqueness and endemic to the specific regions. The other sarees on the radar are ‘Guledaguddakana’ and large varieties of Priyadarshini silk.
For the second quarter of 2016 Indorama Ventures’ core profit after tax and non-controlling interests rose 74 per cent year-on-year driven by margin recovery in the polyethylene terephthalate (PET) segment and contributions from additional feedstock volumes. Core EBITDA saw PET growth of 19 per cent underpinned by excellent growth in the fiber segment of 46 per cent year-on-year.
The company’s blend of focused businesses is expected to transform it as one of the most competitive producers in its space and provide it downside protection on volumes and integrated margins while preserving its upside potential as the industry recovers. Thailand-based Indorama Ventures, is one of the world’s leading petrochemical producers and a leading global manufacturer of wool yarns. Its products serve major players in diversified end use markets including food, beverages, personal and home care, health care, automotives, textile and industrial.
The company’s portfolio comprises necessities and high value-added categories of polymers, fibers, and packaging. With a focus on cost and efficiency, Indorama Ventures is now positioned among the lowest cost polyester chain producers in the world. In a proactive move towards maximising its value chain and operational synergies, Indorama Ventures has expanded its PET and polyester businesses in recent years.
This fiscal (2016-17) production of cotton in the country is expected to hit a seven-year low because of a reduction in area under cultivation and pest attacks in Gujarat, even as domestic prices have started firming up after a poor season. Cotton imports in 2015-16 may have been the highest in a decade, say experts. Imports may see a new high this fiscal as the overall area where cotton has been sown has declined 8.7 per cent.
According to the Agriculture Ministry, area under cotton as on August 5 was 96.48 lakh hectare as compared to 105.68 lakh hectare a year ago. India's cotton production in 2015-16 declined to 338 lakh bales (one bale of 170 kg each), down 12.4 per cent from 386 lakh bales in the previous year to hit a six-year low, according to last month's update of Cotton Advisory Board (CAB).
NK Sharma, MD, Gujarat State Co-operative Cotton Federation feared that cotton production would further fall to 310-315 lakh bales in 2016-17. Scientists and industry insiders said cotton production is expected to fall in key states such as Gujarat, Punjab and Haryana.
Higher production in Maharashtra, where weather conditions are favourable as of today, is not expected to fully compensate for the fall in Gujarat and Punjab. Pink bollworm in Gujarat and white fly in north India had led to severe crop damage last year. This year, scientists of Central Institute of Cotton Research (CICR) say that white fly infestation is restricted to pockets such as Fazilka and Abohar in the North. But, the late sown cotton in Gujarat which is 30 per cent of the total cotton sown is likely to get affected by pink bollworm on a large scale.
Despite delayed monsoon and sluggish sowing progress, cotton production in Gujarat is not likely to wilt this Kharif season, thanks to improved yields. Driven by good rains in the growing regions, the yield is likely to be higher. This would result in a stable crop size, it is gathered. In Gujarat, India’s largest cotton producing state, acreage under the fibre crop has touched a three-year low at 23 lakh hectares which is about 19 per cent lower than the last three year’s average of 28.21 lakh hectares (lh).
The state accounts for nearly a third of India’s cotton production. Cotton acreage in the country, which stood at around 118 lh for 2015-16 as per the provisional figures of the Cotton Corporation of India (CCI), is likely to be lower this year. But a good rainfall in the growing regions of Maharashtra, Andhra Pradesh, and Telangana, apart from Gujarat, is likely to improve the crop situation for 2016-17.
The Central Board of Excise and Customs (CBEC) , through its notification No.43/2016-Cus (ADD) dated 8th August, 2016 has intimated those concerned about the imposition of anti-dumping duty on imports of Viscose Staple Fibre excluding Bamboo Fibre originating in or exported from Peoples Republic of China and Indonesia.
This duty shall be effective for a period of five years (unless revoked, superseded or amended earlier) from the date of publication of this particular notification in the Official Gazette and shall be paid in Indian currency.
Cambodia’s total garments and footwear exports to Japan increased 32.7 per cent in the first half of the year, that is, January to June 2016. There was a surge in exports of garments and footwear to Japan during the period due to the competitive prices of Cambodian products. Cambodia has lower production costs than has Japan and so Japan doesn’t produce much of garments and footwear.
The good relations with Cambodia have induced Japan to place more orders with Cambodian suppliers. The main products that Cambodia exports to Japan are garments, footwear, sugar, fish and seafood. Imports from Japan are mainly machinery, automobiles, electronic products, beef, iron, steel and pharmaceutical products.
However, Cambodia’s imports from Japan rose only marginally by 0.9 per cent in the first half of the year compared to the same period last year. Cambodia hopes to learn from Japan how to utilise international supply chains for manufacturing. Cambodia relies heavily on garment exports to earn foreign earnings. There are now plans to shift from low-priced garment manufacturing to higher end manufacturing of automobile, machinery and electronic parts, which will help it diversify its export basket and maintain the overall health of the economy.
