FW
Denim in India and across the globe has become the flavour and trend at fashion weeks and fashion forecasts with its various innovations in its fabric weaves, yarn blends and surface textures. The overall field-based perception in the market is that demand for denim cloth and its products have never been so good.
The denim sector is on a growth path vis-a-vis other sectors of the textile industry, riding high on upbeat demand for denim in India; and many existing players are also expanding their capacities. Similarly, new ones are making investments so as not to miss the TUFS subsidy and concessions from state governments, especially the US, which are cotton producers and/or are predominant in textile production, and doling out concessions and special incentives to get investments from textile corporates and projects.
Due to the industrial slowdown and tapering out in textile production, China will become a marginal player in the future, while India, Vietnam and Bangladesh are all set to emerge stronger. Bangladesh is more active in denim products, for which it has achieved export of $2billion, and having ambitious target of exporting denim products worth $7billion by the year 2021.
Meanwhile in India, demand for denim apparel such as jeans, shirts, tops, short trousers and jackets etc is growing fastest in all apparel segments, driven strongly by the urban and semi-urban aspiring youth. In addition, demand is fuelled and unleashed by unprecedented growth and the rise of online consumerism via a growing trend for shopping malls and e-commerce. This is leading to the increasing share of denim apparels in the fashion segment of retail markets.
With Vietnam’s increasing participation in trade agreements, including the Trans-Pacific Partnership and the EU free trade agreement, local textile sector is poised for faster growth, creating increased demand for sustainable energy and water use practices. The textile, apparel and footwear sector is a significant contributor to Vietnam’s economy. In 2015, the sector's exports reached $39.2 billion and generated approximately three million jobs, mostly for women.
While this sector is energy and water intensive, there are opportunities for reducing resource consumption by 20 per cent or higher by using the latest technology and good operating practices.
Energy and water efficiency assessments will be conducted at about 30 factories over the next 12 months to help them reduce operating costs and improve productivity while contributing to the country’s green growth and climate change targets.
This manufacturing sustainability initiative will promote resource efficiency by systematically assessing performance improvement opportunities, conducting benchmarking studies, sharing technology best practices, and raising sector-level awareness for broader uptake.
Factory assessments at supplier factories across the textile value chain, including cut-and-sew, dyeing-and-printing and garment-washing operations, will identify and develop cost-effective measures to improve energy and water efficiency while helping suppliers improve productivity and competitiveness.
Himatsingka, a vertically integrated home textile major with a global footprint is planning to increase it sheeting capacity. It has manufacturing facilities at Hassan in Karnataka which it plans to expand. Their plans include increasing sheeting capacity, backward integration into spinning and a foray into terry towels. The group is doubling its existing sheeting capacity from 23 million mt. per annum to 46 million mt. per annum. The company will be installing for the first time 2, 11,000 spindles as a part of its backward integration into spinning. The group’s entry into the terry towel segment will see it setting up a capacity for 25,000 tons per annum. Expansion is progressing as scheduled, with the group estimating to commission its enhanced sheeting capacity by June 2016.
The company remains focused on sweating assets across the group in order to drive operating performance. It expects to see better operating performance by its manufacturing and distribution divisions, which would be further aided by the new sheeting capacities that are expected to be on stream in financial year ’17.
The group has over 12 brands globally, including marquee brands like Calvin Klein Home, Barbara Barry, Esprit, Bellora and Atmosphere. It also has a strong foothold in the private label space.
www.himatsingka.com/
In a significant development, All Pakistan Textile Mills Association (APTMA) has urged the Pakistan government to completely remove the Gas Infrastructure Development Cess (GIDC) from the entire textile chain to enable it to regain its competitive edge and market share.
APTMA chairman Tariq Saud said in view of declining oil and natural gas prices in the international market there is no justification for imposition of GIDC on textile industry, which is already burdened and has become uncompetitive vis-à-vis to their regional competitors in the absence of liquidity flow and high cost of doing business.
Further Saud said that the continuous decline in exports, especially the textile exports is a matter of concern as the exports of textile sector contribute over 55 percent in earning of the total export of the country and any decrease in textile exports would indicate decrease in the foreign exchange earning of the country.
Saud mentioned that the import of synthetic yarns and fabrics of polyester, viscose and other blends is increasing by quantum leaps, during the financial year 2012-13 the import of yarn under Chapter 55 was 12,077 tons and is expected to reach 47,000 tons in the current fiscal. The import of fabric under Chapter 55 was 65.1 sq. mt. and is expected to increase to 125 million sq. mt. During the first eight months of the current financial year compared with the last full financial year (2014-15) imports have surpassed the total imports in case of yarn and fabric imports.
A denim expo will be held in Bangladesh, April 25 to 26, 2016. The aim is to highlight the country as the prime destination for sourcing latest designs of jeans and other denim products. A total of 49 participants are scheduled to take part in the expo. Besides local denim manufacturers, 37 foreign participants from 13 countries will participate.
Participants include: entrepreneurs from the apparel sector, apparel traders, fashion professionals and stakeholders of the industry from Europe, US, UK, Germany, Italy, India, China, Pakistan, Vietnam, Singapore, Thailand, Turkey, Japan, Spain and Brazil. Seminars will be held on different issues including innovative trends and techniques of the denim world, different aspects of design, production, finishing and marketing.
The expo will create a platform for the country’s denim manufacturers to showcase their latest innovative designs of jeans to global buyers and retailers and inform them about the industry’s strength. This is the fourth edition of the expo. The third edition drew around 2,300 visitors from France, Spain, Germany and Turkey, most of them buyers.
Bangladesh aims to be the third largest denim exporter after the US and Italy by 2021. Manufacturers in Bangladesh are going into value-added product manufacturing.
Businessmen from Turkey and Bangladesh, see immense potential to work together in fashion and fabric trade. At a recent meet they observed that Bangladesh is among the reliable sources in the world for producing readymade garments while Turkey is becoming a hub for good quality fabrics for the Middle East, and Eastern European fashion.
Turkish businesses showed an interest in increasing trade volume between Bangladesh and Turkey in the field of textile and clothing. They feel, Bangladesh can be the promising market for good quality fabrics while Turkey can be an important export destination for value added RMG products. However, business-to-business and government-to-government initiatives are necessary for that to happen.
Recently, to show its strength in textiles, Turkey organised a fashion and fabric fair titled ‘Premiere Vision Istanbul’. At the show held from March 23 to 25, nearly 146 exhibitors, mostly Turkish companies, presented their collections. Exhibitors from Italy, Germany, Portugal, France, Austria, Bulgaria, United Kingdom, Romania, Lithuania, Morocco, China, India, Taiwan and Pakistan showcased their fashion collection like yarns, fabrics, designs, accessories and denims, at the event.
The just concluded TEXPO 2016 in Pakistan, organized by TDAP saw delegations from South America, Jordan, Japan, Thailand, Indonesia, Nigeria and India. They met TDAP CE S M Muneer and TDAP Secretary Rabya Javeri Agha. The high profile meetings generated some serious business leads. Led by Aman Chamber of Ccommerce & Textile and ready-made clothes syndicates, the delegation from Jordan shared great enthusiasm for hosting a single country exhibition of Pakistan, which will be organized by the TDAP in Jordan.
Meanwhile, the Thailand delegation discussed the signing of Pak-Thailand Free Trade Agreement and asserted the significance of early signing of the agreement. They showed keen interest in export of cotton yarn. Grande Asset of Thailand expressed interest in products of home textile for hospitality industry.
The Indian delegation exchanged views on great potential for trade between the two countries in the textile sector and also discussed the trade constraints. Two leading trade chambers of Pakistan, the FPCCI and the KCCI, also held conducive business meetings with delegates from Netherlands, S Africa, S America, Spain, Indonesia, Thailand, Jordan, China, Kuwait, India and Nigeria.
The Trans-Pacific Partnership may adversely affect Indian textile and garment exports to the US. Exporters from TPP member countries will get preferential access to the US market while non-members like India will lose out. The US imported about $82 billion worth of apparels in 2015 of which India supplied about $3.7 billion. This accounted for 21.5 per cent of total apparel exports from India, down from 23 per cent in 2014. If the duty turns disadvantageous for India's apparel exports, the share is likely to fall substantially.
TPP has a rule that makes it mandatory for a partner country that makes clothes to source yarn, fabrics and other inputs from another partner country. Only then will the manufacturing country get duty preference. This rule means garment manufacturers in TPP countries have to source their raw materials among themselves even if suppliers from that region are not the most efficient.
So India’s exports of apparel to TPP countries like the US will go down since buyers would like to procure from TPP-based vendors. The Trans-Pacific Partnership is a free trade agreement between 12 countries of the Pacific rim including Australia, Brunei Darussalam, Canada, Chile, Malaysia, Mexico, New Zealand, Peru, Singapore, the United States of America, Japan and Vietnam.
A readymade apparel manufacturing unit has opened in Tripura. This is the second such unit to open in the Northeast. Nagaland already has one. A sum of Rs18 crores has been allotted for a readymade garment manufacturing unit or apparel and garment making center in each of the eight Northeastern states. The aim is to stop people from northeast India going to other parts of the country to seek jobs.
Each apparel unit would provide employment to 1,200 to 1,500 people. Entrepreneurs having a background in textiles can run an apparel garment business on a plug and play model. Each center will be provided 300 machines.
Tripura has enlarged the incentives to boost small and medium industries in the state. Soft loans have been provided to self-help groups at a rate of four per cent. This rate of interest would be further slashed to 3.5 per cent soon.
So far 8,000 self-help groups have become self-reliant and are producing lots of attractive and useful products from benefits provided by the state government. Readymade apparel and various other clothing have a huge market in northeast India, other parts of the country, Myanmar and Bangladesh.
The textile industry of Uzbekistan is known as one of the most dynamic and socially important sectors and ranks high among export-oriented industries of the country’s economy. The Uzbek textile industry is mainly focused on cotton, silk and wool.
Data records that light industry enterprises of Uzbekistan exported products valued at $1.1 billion in 2017. Domestic production was exported to over 50 countries worldwide and the share of goods with high added value went beyond 40 percent.
In early 2017 there were 293 exporting enterprises and by the end of the year their numbers increased to 350. The growth of export indicators was largely due to 64 trading houses which were opened abroad.
A representative from Uztekstilprom’s disclosed,“One of the effective forms of further development of the textile industry will be the creation of clusters. This model implies the organisation of a single production cycle which includes the cultivation of raw cotton, primary processing and its further processing at ginneries with the release of final products.”
Experts have already created a draft Concept of development for the medium-term perspective of cotton-textile clusters given the experience of such facilities in Navoi region.
As many as 34 investment projects on modernisation, technical and technological re-equipment of existing and creation of new enterprises with a total export potential of $151.7 million were realised this year in the light industry, simultaneously their total value exceeded $356 million.
Currently approximately 7,000 enterprises of the industry are operating in the republic. Capacity for production of cotton fibrevalued at 1.4 million tons has been created, of which about 60 percent is used to meet the needs of domestic textile enterprises.
One of the policy priorities of Uzbekistan, the world’s fifth-largest cotton exporter, is further development of its textile industry. Annually, the country grows about 3.5 million tons of raw cotton and produces 1.1 million tons of cotton fibre.
Uzbekistan takes consistent steps to increase the volume of cotton fibre processing. In particular, it is planned to create 112 modern, high-tech industrial factories, expand, modernise and technologically upgrade 20 operating capacities. All this will increase the export potential of the industry up to $2.5 billion a year and create over 25,000 jobs.
In the period 2010-2014, the textile industry of Uzbekistan received and spent foreign investments valued at $785 million while 147 new textile enterprises with participation of investors from Germany, Switzerland, Japan, South Korea, the U.S., Turkey and other countries were commissioned. Export potential of these enterprises were valued at $670 million.
