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Textured Jersey Lanka’s well diversified business with big clients in the United States has helped it weather the downturn in European demand. TJL is a Sri Lankan fabric manufacturer. It managed to reduce energy costs to help counter eroding competitiveness against other origins with cheaper labor and power costs.
The company’s commissioning of its own coal power plant has helped reduce energy costs. Other initiatives to enhance profitability in the near term include continuous focus on enhancing efficiencies and increasing value addition to products to offer more customised solutions. TJL expects its focus on technology and expansion as a regional player to be key solutions to meet rising labor costs, in order to sustain growth in the near to medium term future.
Sri Lanka’s reputation and track record as an investment friendly destination, and as a manufacturer for a large number of the world’s leading apparel brands, continue to make it an attractive destination for inflows of new investments by overseas apparel manufacturers. But the country’s high labor and energy costs continue to be a challenge which dampens its cost competitiveness for all manufacturing industries. Its global competitiveness as a manufacturing destination is being challenged with the opening up of new destinations such as on the African continent, and some South Asian and East Asian nations which enjoy lower costs of production.
ColorJet Group, the largest manufacturer of digital inkjet printers in India is going to participate in the Knit Show to be held at Tirupur from August 7 to 9. The company would be showcasing its direct to fabric digital printing machines using water based pigment inks aimed at green digital printing. Along with, ColorJet it will also be showcasing samples printed on its best-selling direct to fabric digital printing machines; the METRO and VASTRAJET that use groundbreaking and environmentally friendly, water based pigment inks.
Traditionally, printing through all other inks whether through screen or digital, a square metre of fabric consumes approximately 100 litres of water till finishing. Major pollutants in the discharged waste water are highly suspended solids, chemical oxygen demand, acidity etc. The wasted water if not treated properly, pollutes the environment. Water based pigment inks are the answer to the pollution challenges faced by the fabric screen printers of Tirupur and its surroundings.
Incidentally in February 2011, the Madras High Court decreed that all dyeing units in Tirupur would have to shut down for violating pollution norms. They would only be reopened when they implemented zero-discharge protocols in order to protect the surrounding farmlands and rivers, it said.
Fiberweb has received export orders worth Rs 12 crores from the US. The company is pioneer of spun bond nonwoven fabric production in India. About 75 per cent of the products are exported to countries like the US, UK, Europe, Australia, New Zealand, South Africa and the Gulf.
The company has implemented comprehensive quality management systems in all functional areas like marketing, material management, production, maintenance, quality assurance and customer services. The main raw material, polypropylene, is imported from world class renowned producer Exxonmobil.
Fiberweb makes spun bond polypropylene non woven roll goods and products used in the hygiene industry, agriculture crop covers, soil covers, medical and industrial clothing and many other innovative products like bags, pillow ticks and covers, bed covers, curtains, table cloth, garment interlinings etc.
It has three units. One comprises divisions engaged in the manufacture of mono layer and multilayer films for packaging, lamination, masking etc. In the second unit films, garbage bags and carrier bags are manufactured. The third unit manufactures non woven spun bonded polypropylene fabric. This fabric has diverse applications as in baby diapers, sanitary products, crop covers, ground covers, medical made-ups, bed linen, filtration, industrial work clothing, head covers, disposable table wipes and mats.
Inefficient and environmentally unsustainable practices within and beyond factories are severely impacting lives of Dhaka residents and its neighbouring locations, experts say. Underscoring their observations at a IFC-initiated dialogue, they emphasised voluntary actions by the industry and working together towards lowering sectoral barriers. The dialogue encourages the use of environment-friendly goods and recognises the role of the Textile Sustainability Platform (TSP) in promoting sustainable practices in the textile sector in Bangladesh.
Bangladesh Partnership for Cleaner Textile (PaCT) has recently launched the TSP which is a national-level dialogue programme aimed at addressing resource use efficiency, and environmental sustainability of the textile sector. The platform also aims to establish the social capital for dialogue between public and private institutions by convening the stakeholders for improving the policy and regulatory framework.
The TSP operates through working groups (WGs) that focus on policy and regulations, voluntary actions by industry, and access to finance. Based on a series of deliberations of the WGs with support from Policy Research Institute (PRI), the platform has proposed several recommendations to the relevant government authorities for their consideration.
Textiles is a crucial sector that contributes approximately 80 per cent of export earnings and employs over 4 million people, the textile sector is also one of the most resource-hungry sectors, and a major contributor to wastewater pollution.
The value-added textile sector in Pakistan has demanded additional duty drawback to compensate the multiple domestic and international negative happenings that have adversely affected dwindling export. As Khurram Tariq, Central Chairman Pakistan Hosiery Manufacturers & Exporters Association (PHMA) points out the value-added textile sector is under severe stress particularly due to the unprecedented reduction in cotton production, increase in prices and sudden depreciation of euro and the pound in the wake of Brexit.
He said that due to 34 per cent sharp decline in cotton production this year, prices have also recorded an upward trend in local as well as in international market. And despite the gravity of situation, the government has not taken any remedial steps to compensate the value added textile sector. Increase in cotton prices was the natural outcome of low cotton yield and it has further enhanced the cost of doing business which was already a major problem for exporters in competing with rivals.
Tariq suggested that government immediately withdraw the 15 per cent regulatory duty on import of yarn and duties on cotton to ensure free availability of raw material to the value-added export sector that would enable it to compete with regional competitors and maintain its position in the international market. Similarly, in view of acute shortage of cotton in the domestic market the government should immediately impose complete ban on export of cotton and yarn to ensure availability of raw material in abundance to the value-added textile sector.
The Textile Effects division of Huntsman Corporation has been selected as the overall winner in the 2016 Dyestuff Manufacturers’ Association of India Awards (DMAI) 2016 for recognition of “Excellent Performance in Exports of Dyestuffs by a Large Scale unit. It also won a prize in the category for Excellent Performance in Safety & Hazards Control by a Large Scale unit.
Huntsman Textile Effects received the awards based on innovation, creativity, development and quality. This is the second consecutive year that Huntsman Textile Effects has received award from Dyestuff Manufacturers’ Association of India (DMAI). Previously, DMAI conferred the company with “Pollution Control and Excellent Performance in Safety and Hazards” award for 2014-15 and the “Highest Export and Excellence in Safety & Hazard” for 2015-16.
The awards recognize the outstanding contribution of Huntsman Textile Effects in supporting environment, health and safety and sustainability or the textile industry. Amol Yeola, Regional Marketing Manager Huntsman Textile Effects– South Asia, Middle East, Africa and Sanjay Kadam- Demand Supply Manager- Huntsman Textile Effects received the award. The Baroda manufacturing facility received the awards on behalf of Huntsman Textile Effects.
Top spinners in Bangladeshi have urged the government not to increase gas price in phases in one go but to phases it out as the sector is facing challenges due to the import of cheaper yarn and fabrics from India and China. A proposed 130 per cent hike in gas prices for captive power plants which the spinners use for continued power generation, will badly hurt the sector, they say. The hike will push up the price of gas from Tk 8.36 to Tk 19.26 per cubic metre.
They feel the proposed hike is abnormally high and will be difficult for spinners to absorb price shocks in the current volatile situation. It may be recalled the government had already raised the price of gas for captive power plants from Tk 4.36 per cubic metre to the current rate last September. Bangladesh Energy Regulatory Commission will hold a public hearing on the gas price hike proposed by Titas Gas Transmission and Distribution Company Ltd on August 7 and 8.
The construction of a textile park at Irur village on the Tiruchi-Perambalur National Highway is to start by October as all the preliminary works have been taken up for the transfer of land to the State Industries Promotion Corporation of Tamil Nadu (SIPCOT). The proposal of the textile park has attracted a large number of entrepreneurs with as many as 31 of them from different parts of the state expressing interest to set up units. One of them has demanded allocation of five acres of land to set up a readymade garments unit.
Interestingly, the textile park will mainly cater to the needs of export-oriented readymade garments units and production of yarn. A number of entrepreneurs have submitted their projects to set up T-shirt manufacturing units. To support the textile park, the Tamil Nadu Water Supply and Drainage Board has planned to provide water supply to the site where the park situated on an area of 40.35 hectares – 36.79 hectares of government poramboke land is to be constructed.
Also a sum of Rs 65 lakh has been sanctioned for laying a tar road from the National Highway to the site. The proposal was mooted as early as 2012 and suffered various bottlenecks particularly with regard to the selection of a site. However, the park would not handle dyes and chemicals to prevent environment pollution.
For Q1 ended June 30, Welspun, Indian Home Textiles Manufacturers and Exporters posted a 10.29 per cent rise profit on a year-on-year basis. Net sales rose to double digits at 11.30 per cent to to touch Rs 1,386.46 crores for the quarter under review as against Rs 1,245.6 crores in the same period in the last fiscal. In a BSE filing, the company said of the Rs 800 crores the company had planned to invest as capital expenditure in fiscal 2016-17, it has already spent Rs 140 crores in the reporting quarter.
The annual capacity of towels is expected to reach 72,000 metric tons by end of the current fiscal as against 60,000 posted at end of the earlier fiscal. As far as bed linen was concerned the company would have capacity of 90 million mt. compared to 72 million mt.
"Shanghai Garment Trade Association Network (SGTAN) periodic statistical report shows that in June 2016, Shanghai's top 10 shopping malls sold 680,000 (sets) of clothing categories, a decrease of 34,000 (sets), a decline of 4.7 per cent but an increase of 300 (sets). In June 2016, sales of clothing categories stood at 295 million yuan, a decrease of 32 million yuan, a decline of 9.7 per cent; down 012 million yuan, down 4.0 per cent month on average sales price of 433.9 yuan / piece (set), a decline of 17.0 per cent, down 4.0 per cent."
Shanghai Garment Trade Association Network (SGTAN) periodic statistical report shows that in June 2016, Shanghai's top 10 shopping malls sold 680,000 (sets) of clothing categories, a decrease of 34,000 (sets), a decline of 4.7 per cent but an increase of 300 (sets). In June 2016, sales of clothing categories stood at 295 million yuan, a decrease of 32 million yuan, a decline of 9.7 per cent; down 012 million yuan, down 4.0 per cent month on average sales price of 433.9 yuan / piece (set), a decline of 17.0 per cent, down 4.0 per cent.
Sales continue to plummet
Shanghai Garment Industry Association data network indicates that the apparel consumption was down due to rainy season. As per June 2016 sales figures of most clothing categories there was a decline across the board. Among them, leather, knitting underwear, men's suits, wool (cashmere) shirt, women's fashion, men trousers, and men’s casual wear fell by over 20 per cent, while kid’s wear registered a growth of 52.0 per cent. From January to June 2016, 10 of Shanghai’s mall clothing categories recorded a dip in sales volume by 9.4 per cent year on year.
In the same period, sales of women's fashion was 1.096 million (sets), down by 19.3 per cent. In yuan terms total sales was 823 million yuan, down 12.7 per cent. The average selling price was 750.6 yuan / piece (set), an increase of 8.1 per cent. In June 2016, the top three brands were: 'Ya Ying' brand return to the top of the charts with sales growth of 4.6 per cent. 'Only,’ for the first time made it to the top three, ranked second with a growth of 38.8 per cent sales and 'Veromoda was third, with a decline.
In men's casual wear during the same period, cumulative sales were 225,000 (sets), down 21.7 per cent. Total sales was worth 151 million yuan, down by 16.3 per cent with an average selling price of 670.0 yuan /piece (set ), an increase of 6.8 per cent. In June 2016 the top three brands in terms of sales was: Lacoste on top with a growth of 19.6 per cent; Tommy Hilfiger, second and 'Beverly Hills Polo Club' brand for the first time made it to the top three.
In the same periods January to June 2016, cumulative sales of men's suits was 121,000 (sets), down by 3.8 per cent. Total sales was worth 169 million yuan, down by 6.5 per cent at an average selling price of 1,394.6 yuan / piece (set), down by 2.8 per cent. Te top three brands were: Callisto, Connie Weiss brand ranked second and Blue Leopard third.
In men's shirts for the same periods, cumulative sales was 69,000, down by 18.2 per cent. Total sales was 29.18 million yuan, down by 10.7 per cent with an average selling price of 420.7 yuan / piece, an increase of 9.1 per cent in 2016. As per June, sales top three brands were: Byford first followed by Conch and Younger brand third with sales down by 12.6 per cent.
Cumulative sales of men’s trousers were 48,000, an increase of 2.9 per cent with total sales worth 25.89 million yuan, an increase of 12.4 per cent. The average selling price was 534.1 yuan. In June 2016 top three brands were: Lang Ken, first with a decline of 42.2 per cent, Hong Chuan was second down by 6.9 per cent, Tiger for the first time made it to the top three with a strong growth of 27.6 per cent.
From January to June 2016, cumulative sales of children's clothing was 1,314,000 (sets), down 0.6 per cent; total sales was 358 million yuan, an increase of 5.3 per cent at an average selling price of 272.3 yuan / piece (set), an increase of 5.9 per cent. As per June 2016, sales the top three brands were: Nike with a growth of 23.3 per cent; New Balance was second with a growth of 62.0 per cent and 'E- land' won third place with a sales growth of 51.0 per cent.
