FW
Meghalaya operationalises largest apparel manufacturing unit
Meghalaya recently operationalised its largest apparel manufacturing unit owned by the School of Livelihood and Rural Development (SLRD), the unit was originally set up in 2017 by the Union Ministry of Textiles, , and has remained idle since then. Covering an area of 45,000 sq. ft, the unit has three divisions. Two of them accommodate 105 sewing machines each, while the third division is equipped with 70 machines. It is expected that the unit will create 1,500 jobs in the region.
The unit was set up at South West Garo Hills district under the North East Region Textiles Promotion Scheme (NERTPS), an umbrella scheme for the development of various segments of textiles such as silk, handloom, handicrafts and apparels. Production at the unit has begun and will be ramped up in stages to meet the market demand in India and Bangladesh.
Retail industry expresses concern over Brexit deal
The retail industry has expressed concern that the proposed Brexit deal may not pass through Parliament, extending uncertainty for business. In case the deal is not passed, the UK would immediately leave the single market and customs union, and revert to the World Trade Organization rules, under which tariffs would be levied on imported goods from the EU.
Despite Prime Minister Theresa May announcing a draft agreement had been backed by the cabinet, the government has been in turmoil since. Seven politicians have resigned in protest at the proposal, including Brexit secretary Dominic Raab and pensions secretary Esther McVey. Several MPs are calling for a vote of no confidence in the prime minister. The fallout is prompting speculation that the current draft will not pass the vote, which is expected to take place on 7 December, and increase the risk of a no-deal Brexit.
Germany to host Performance Days
Performance Days will take place in Germany on November 28 and 29, 2018. The fair was founded in 2008 as the first and only event dedicated to functional fabrics for sports and work wear. The biannual trade show aims at giving innovative textile manufacturers, suppliers and service providers a platform to present their functional fabrics, membranes, treatments, laminates, paddings, equipment and accessories such as yarns, tapes, prints, buttons and zippers.
Designers, product managers, buyers and decision makers from almost all European sportswear manufacturers come together every April/May and November to source high-quality materials for their collections. Meanwhile two awards for eco performance will be given by the fair. The award for best sustainable development has been given to a laminate from tech company Jou Jou Fish. The fabric combines various sustainable technologies and is made from 100 per cent recycled nylon. Additionally, its micro-porous membrane is produced without solvents. The fabric is not only made from pre-dyed fibers but its DWR coating is also applied using a dry-finish treatment.
Green Threads has got an award for its tear-resistant fabric. Made from fine nylon yards which have never been used in performance fabrics before, the material is super lightweight. The next US edition will take place on July 22 to 23, 2019.
With CPTPP on the anvil, FDI pours into Vietnam
French group Scavi is investing heavily in Vietnam with the country joining the CPTPP. Scavi is one of the world’s top enterprises in lingerie, swimwear, and sportswear segment. North America and Japan are the group’s key export markets, accounting for 40 per cent of its total revenue.
Vietnam’s textile and garment industry will not be the only sector to benefit when Vietnam officially joins the CPTPP. Aquaculture, timber manufacturing, logistics, realty, and agriculture are also looking at bright prospects, as more FDI will reach these sectors.
Another giant in the textile and garment space, Hyosung Corporation, is also in the process of expansion in Vietnam. Similarly Korea-based Hi Knit has also been granted an investment license. With a total registered capital of $40 million, the company produces textiles as well as nonwoven fabrics for export and domestic foreign-invested companies.
Japanese firm Yuwa has officially launched its second factory in Vietnam. Its first factory was built with $4 million in 2009 and produces molded electronic plastic components. In addition, Yuwa is also scheduled to build a research and development centre in Vietnam to increase production.
More such Japanese investment is expected. Although individual investments will be of average magnitude, as the majority of these enterprises work in the supporting industry and mainly apply advanced technology, they can produce millions of products annually.
Fall in Indian cotton output likely
India’s cotton output is likely to decline by 11 per cent this year.
There has been crop damage in major producing states such as Maharashtra and Gujarat. Almost half the country's cotton comes from these two states.
The deficient and erratic southwest monsoon this season followed by a long dry spell this winter season has impacted the standing crop. While the first cycle of cotton picking is over, the second and third cycles are likely to get impacted badly due to spoilt flower buds.
In case November rainfall is normal, cotton flowers can recover some lost yield in the third cycle, and curtail the decline in cotton output substantially this year.
Meanwhile, the benchmark variety of cotton, Shankar 6, has been trading at around Rs 13,000 a bale for quite some time now.
Total cotton output in Gujarat would stand at 8.8 million bales this year, down from 10.5 million bales the previous year. Output in Maharashtra is estimated at eight million bales this year versus 8.3 million bales last year, while that in Andhra Pradesh is forecast to decline to 1.6 million bales from 1.85 million bales.
Rising demand and lower output may trigger a sharp price rise this year which may dent textile mills’ profit margins in coming quarters.
European parliament recommends continuation of Transition Accord
The European Parliament has passed a resolution urging the Bangladesh government to allow the work of the Transition Accord to continue beyond November 2018. The resolution also calls for a marked improvement in worker rights for garment workers – notably in the area of collective bargaining – in order for Bangladesh to continue to be eligible for trade sweeteners.
The Accord expired in October 2018 and was succeeded by a Transition Accord to apply for three years. The European resolution urges the Bangladesh government to adopt legislative changes to the Bangladesh Labour Act and its implementing rules to bring them into line with the ILO’s international labor standards, and to allow full freedom of association. It also urges Bangladesh to take necessary steps to effectively address all acts of anti-union discrimination, including acts of violence and intimidation.
Hong Kong, Australia to sign FTA and investment agreements
China's Hong Kong Special Administrative Region (SAR) and Australia have concluded the negotiations on a free trade agreement (FTA) and an investment agreement. The arrangement would take the two economies' trade and investment relationship to a "new height. Hong Kong will launch FTA negotiations to achieve zero tariffs for Hong Kong products to the Australian market and to secure Australia's best FTA commitments for Hong Kong services. The two agreements encompass trade in goods, trade in services, investment and other related areas, providing with legal certainty and better access to the Australian market.
The deal will be a major windfall for Aussie businesses and service suppliers and good news for its farmers, and in particular its seafood industry, beef and pork producers and winemakers. According to Hong Kong SAR's Trade and Industry Department, bilateral trade in goods between Hong Kong and Australia amounted to $6.92 billion in 2017, up 3.7 percent from 2016. Over the past 12 months, the Hong Kong SAR government has signed three FTAs with 12 economies including the 10 member states of the Association of Southeast Asian Nations (ASEAN), Georgia and Macao SAR.
Bangladesh apparel exports up 20 per cent in October
Bangladesh’s apparel exports grew 20 per cent from July to October 2018. Earnings from knitwear exports grew 17.8 per cent in this period. Exports in this segment crossed the strategic target by nearly 17 per cent. Earnings from woven garment exports grew 22.6 per cent in this period. Exports crossed the strategic export target by over six per cent.
On the whole, apparel exports was over 84 per cent of Bangladesh’s export volume in October. Export performance for October 2018 was a huge 30.5 per cent leap on a year-to-year basis. Export items in October were winter garments in majority. In November too there are lots of orders for winter garments. Growth is coming from two factors: a rise in export of Bangladesh’s apparel items due to winter and buyers seeking out a China plus sourcing strategy due to ongoing trade war. Buyers are gradually moving away from China. The void this is creating is huge. But Bangladesh which is next to China still doesn’t have the capacity to fill that void.
In the year ending June, Bangladesh’s garment exports were up 8.8 per cent. The country increased its share of global clothing exports to 6.3 per cent in 2016 from four per cent in 2010.
CCI plans two cotton purchasing centers in AP
The Andhra Pradesh government and Cotton Corporation of India (CCI) have jointly planned to set up two cotton purchasing centers (CPC) in the district soon. Cotton crop is being cultivated in the district in Bhamini, Sitampeta, Sarubujjili, Palakonda, Santhakaviti, Ranastalam, Rajam, Regidi and Vangara mandals in an extent of 30,000 acres. Due to lack of proper purchasing centers, middlemen are exploiting cotton farmers every year. Previously only one centre had been arranged every year in December last week by that time middlemen used to procure cotton from farmers at cheaper price and in turn they sold the same produce for high price.
As against government fixed price of Rs 4,100 per quintal middlemen paid Rs 3,100 as a result, farmers lost Rs 1,000 per quintal cotton. Joint Collector KVN Chakradhara Babu has directed officials to organize two purchasing centers at Rajam and Sitampeta by November-end for early procurement of cotton from farmers.
Contrasting results for Italian textile machinery sector
According to a survey by ACIMIT, textile machinery orders index for July to September 2018, remained stable. The value of index stood at 108.3 basis points (2015 basis= 100). However ACIMIT acknowledged that its manufacturers experienced a slowdown for the first nine months of the year. In China, particularly, its main export destination, trade tensions with the United States halted investment plans for many manufacturers.
Orders received by Italian machinery manufacturers however indicate contrasting trends. The index in Italy, stood at an absolute value of 121.9 basis points, i.e. a 30 per cent increase compared to the period from July to September 2017. On the other hand, in terms of foreign markets, the index declined by 2 per cent, with an absolute value of 107.4 basis points.












