FW
Virender Uppal is the new chairman of the Apparel, Made-Ups and Home Furnishing Sector Skill Council (AMHSSC). He takesover from A Sakthivel, Chairman of Poppy’s Exports, Tirupur. Uppal a veteran in the apparel sector, has twice been the chairman of the Apparel Export Promotion Council. He has also provided leadership support to the Apparel Exporters and Manufacturers Association, New Delhi, for over four decades and has been on AMHSSC’s board of directors since its inception. He is also familiar with the skill ecosystem of the country.
Known for his resilient dynamism, far-sightedness and all-encompassing vision, Uppal has been instrumental in providing impetus to garment exports from the country and has therefore been hailed as a natural leader.
AMHSSC was launched with the primary mandate of enhancing and building capacity in skill development. It designs training programs, based on the industry demands of different segments, and ensures all successful trainees are certified through an accredited assessment agency.
It assesses the proficiencies of trainees for the apparel sector, made-ups and home furnishing areas. The assessment is defined as a structured process in which evidence of performance is gathered and evaluated. A person’s competence is gauged through a range of methods--tests, observations, interviews, assignments and professional discussion etc.
Outlays under the Amended Technology Upgradation Funds Scheme (ATUFS) have been reduced in the Interim Budget. Over 3000 projects that got implemented are yet to receive subsidies. The ATUFS is the lifeline of the textile sector. With just Rs 700 crores being allocated under the scheme, modernization in the textile industry is expected to be affected. Power loom weavers who have to repay loan instalments fear a difficult situation.
At least 1500 power loom weavers in Surat, , have filed for the 10 per cent subsidy under the ATUFS. These weavers had ordered machinery from foreign countries for obtaining the benefit of the subsidy. But the complicated guidelines of ATUFS have resulted in non-reimbursement of the subsidy amount to the weavers. India’s largest manmade fabric textile industry is in Surat.
Out of the 7000 files submitted for subsidy under ATUFS, only 70 have been approved for disbursal across the country. Textile players face severe difficulties while availing of benefits under the ATUFS. The total fund allocation under ATUFS has been very low since its launch in January 2016. The complicated structure of ATUFS has made it one of India’s least preferred subsidy schemes. For example, overseas machinery suppliers have to be enlisted in the suppliers’ list.
Unifi Asia Pacific and Kipas Textiles have entered into a partnership to supply Repreve staple fibers in Turkey. Repreve staple fibers will be available from Kipas in a variety of specifications, including raw white and dope-dyed, as well as a range of deniers and staple lengths. Repreve will go to fabric mills, brand and retail partners in Turkey, a key supplier of fabric and finished goods to the US and the European market—notably in denim.
Repreve polyester staple fiber is used in blends and 100 per cent polyester constructions and can be coupled with performance technologies for enhanced functionality. Kipas’ production facilities allow for advanced blending and spinning capabilities, including ring, open-end, siro compact, core spun and air jet.
US-based Unifi manufactures synthetic and recycled performance fibers. In addition to Repreve, the company’s primary product is the Profiber brand of virgin polyester and nylon performance fibers. Both Profiber and Repreve yarns can be embedded with a combination of innovative Tru-technology performance benefits such as moisture management, thermal regulation, cooling, UV protection, water resistance, enhanced softness and cushioning.
Kipas Textiles has 25 factories with more than 10,000 employees. The company maintains a focus on sustainability, which besides using recycled fibers like Repreve, includes using recycled paper in paper production and emphasizing geothermal energy.
Premiere Vision will be held in France from February 12 to 14, 2019. The show will disclose novelties from the fabric, accessory, component, fiber, leather, fur and textile design markets for spring/summer 2020. Almost 1,777 exhibitors from 50 countries will participate. Participants will exhibit their newest developments across five halls. Out of the total companies participating, 161 are new ones, counting for almost nine per cent of the total.
This year’s edition will host a specialized offer of innovative materials, technologies and services, alongside a selection of conferences with experts. The Wearable Lab section will host 17 exhibitors divided in three zones: Smart Materials, presenting ten companies offering smart materials without embedded electronics; Innovative Technologies, showing five companies specialized in developing advanced technologies embedded in materials, garments and accessories; and Prototypes and Labs, a space devised to present working prototypes, test them out and discuss the coming issues and challenges in R&D. Wearable Lab will be hosted for the third year in a row.
The Maisons D’Exceptions section will host 25 selected ateliers including six new ones from new countries such as United Arab Emirates and Cambodia. These special artisans will present their unique abilities and custom-made products featuring outstanding techniques in textiles, leather and accessories.
The inverted duty structure in India makes it easier for textile industry to import synthetic textiles rather than manufacture them domestically. Synthetic fiber is taxed at 18 per cent, yarn at 12 per cent and final output at five per cent, creating a tax structure where rate on inputs is higher than that on output.
The inverted duty structure has made imports 15 per cent to 20 per cent cheaper for the domestic industry. Also the absence of refund on input tax credit on the domestic sale of synthetic fabrics is said to have blocked the working capital of the textile industry. Refund of inverted duty is allowed but the industry feels it is complicated and leads to working capital blockage for months. GST on capital goods is not refunded.
Another grouse is that rules do not allow refund or adjustment of GST on services from output GST obligations, which has led to losses for small and medium enterprises using job working services and having an inverted duty structure. The industry wants the refund rule rectified and has sought refund for unused input tax credit that lapsed on July 31 last year and extension of the refund to those selling in the domestic market.
JC Penney will exit the major appliances category and shift gears to focus on soft textiles such as apparel and home furnishings, which are expected to represent higher margin opportunities.
The retailer is finalizing new layout options, including the reduction of store space previously dedicated to appliance and furniture showrooms to maximize efficiencies. It also wants to create an enhanced shopping experience that inspires repeat shopping trips. The assumption is that apparel is the answer to get consumers to return to the store on a regular basis.
The major appliance category will remain in the stores and online through February 28, while the furniture category will still be available online and at select stores. The major appliance category isn’t exactly high margin. Once consumers make a major purchase, they won’t need to make another replacement purchase for at least another five years.
JC Penney used to be the place where middle-income consumers went to for apparel and soft home goods but the retailer then threw out many of the private label brands that JC Penney customers relied on. They showed their displeasure by going elsewhere to do their shopping.
Exclusive private label brands in apparel for women’s, men’s and children’s were always a staple at JC Penney.
East Africa aims at developing a strong textile and leather sector. Priority is being given to the development of a competitive domestic textile and leather sector that can provide affordable clothes and leather products in the region.
Rwanda has already launched a multi-agency task force to embark on a training program targeting local factories and small and medium enterprises in leather processing. The country wants manufacturers to adopt cleaner production technologies.
Business within the East African Community is expected to grow with a reduction in the cost of power, transport, labor and interest rates. The aim is to improve the livelihoods of millions of people across East Africa. Countries in the region have agreed on a phase-out plan and an eventual ban on the imports of used clothes and leather products to support industrialisation and job creation. Textile industry players are being encouraged to start making garments that require basic level technology and skills. Regional sector players have been called in to put in place programs that will help stimulate a localised value chain.
Tanzania plans to boost cotton exports. Emphasis has been laid on the region’s cotton industry, which faces huge challenges including low yields, a low ginning out-turn ratio and inefficient value addition which is affecting its competitiveness.
Companies like Taylor Home & Fashion and Lenzing are working on reducing water use. Taylor Home & Fashion’s GiDelave line uses cellulosic fabrics and yarns such as cotton, linen, Tencel and modal. The company colors its yarns using 98 per cent less water than traditional dyeing methods and does not discharge harmful chemicals. A direct colorization method called Color Diffusion radically reduces water, chemical, infrastructure and energy consumption over traditional package dyeing.
For Lenzing, a breakthrough for water savings comes in the creation of Modal Black, a spin-dyed fiber that introduces color at the pre-extrusion level. The black color pigment is incorporated into the Modal fiber at the dope level. This coloring of the fiber, instead of dyeing it on the surface, not only creates greater penetration and longevity of the color, but creates a more sustainable product. This dope dyeing leads to 64 per cent less water use, 90 per cent less chemicals and 20 per cent energy savings.
The textile industry accounts for one-fifth of the world’s industrial water pollution, using as many as 20,000 chemicals, many of which are carcinogenic. Much of this water is used in the coloration and finishing of fabrics. Yarn dyeing and colorization are among the worst culprits in water use and discharge of hazardous chemicals.
"Growth in India’s knit T-shirt exports in Q2 FY 18-19 declined by 9.62 per cent over the previous quarter. Within the knitted T-shirts segment, cotton tees accounts for 73 per cent of the total share value at $414.54 million. The second topmost commodity in Q2 FY 18-19 under the knitted T-shirt segment included those made from other fibers. The export value of this commodity was $121.61 million in Q2. Exports of T-shirts made from synthetic fibres declined 45.30 per cent at S$ 31.33 million."
Growth in India’s knit T-shirt exports in Q2 FY 18-19 declined by 9.62 per cent over the previous quarter. Within the knitted T-shirts segment, cotton tees accounts for 73 per cent of the total share value at $414.54 million. The second topmost commodity in Q2 FY 18-19 under the knitted T-shirt segment included those made from other fibers. The export value of this commodity was $121.61 million in Q2. Exports of T-shirts made from synthetic fibres declined 45.30 per cent at S$ 31.33 million. Growth of T-shirts made of both artificial fibre and wool declined. T-shirts made of artificial fibre declined by 48.76 per cent while those made of wool declined by 69.57 per cent.
Country break up
USA: Indian exports to the US in the second quarter of the financial year totaled $126.52 million. Of this, cotton T-shirts recorded an export value of $93.78 million. The second highest commodity exported included T-shirts made from other fibers which was worth $27.2 million in Q2 FY 18-19. This commodity witnessed a decline of 19.32 per cent over the previous quarter.
Nigeria: Nigeria recorded positive growth. The country’s total knit T-shirt imports from India was $23.27 million in Q2 a
growth of 43.11 per cent over previous quarter. Import of cotton T-shirts was $17.31 million whereas T-shirts made from other fibers was $5.95 million.
U.A.E: India’s exports of knit t-shirts to UAE was worth $136.88 million in Q2 FY 17-18, a drastic fall of 40.76 per cent. Export of cotton tees was $43.69 million, declining 14.25 per cent over previous quarter. Export of t-shirts made of other fibers was $24.45 million with a negative growth of 4.49 per cent over the previous quarter.
Germany: T-shirt export to Germany was $53.51 million in Q2 FY 18-19 with negative growth of 3.5 per cent over previous quarter. Here too cotton knitted t-shirt ruled the basket with an export value of $37.99 million. T-shirts made of other fibres perceived a positive growth of 12.07 per cent to $13.18 million in Q2 FY 18-19.
UK: United Kingdom’s knitted T-shirt imports from India saw a fall of 12.22 per cent in Q2 FY 18-19 to $40.44 million. Export of cotton T-shirts dropped by 14.81 per cent to $31.13 million in Q2 FY 18-19. Cotton knitted T-shirt exports was worth $0.44 in Q2. Export of t-shirts made of other fibres was worth $7.45 million.
South Africa: India’s exports of knitted T-shirts to South Africa improved with a growth of 48.90 per cent recording an export value of $24.39 million. Cotton t-shirt exports totaled $19.61 million in Q2 FY 18-19, a growth of 87.30 per cent over the previous quarter.
Italy: India’s knitted t-shirt exports to Italy dropped in Q2 FY 18-19 by 12.85 per cent. Export valued at $11.26 million. Cotton T-shirt exports dropped 10.20 per cent while T-shirts made of other fibres dropped 25.79 per cent.
Vardhman Textiles has reported financial results for the period ended December 31, 2018. The company reported net sales of Rs1,789.86 crore during the period ended December 31, 2018 as compared to Rs1,727.17 crore during the period ended September 30, 2018. The company posted net profit of Rs 191.13 crores for the period ended December 31, 2018 as against Rs 195.60 crores for the period ended September 30, 2018.
On yearly basis, the company reported net sales of Rs 1789.86 crores during the period ended December 31, 2018 as compared to Rs 1685.54 crores during the period ended December 31, 2017. Net profit was Rs 191.13 crores for the period ended December 31, 2018 as against Rs 133.29 crores for the period ended December 31, 2017.
