Textiles (147)
With the Trans-Pacific Partnership fizzling out, Vietnam is turning to its Asian neighbors for trade pacts. The country is looking to increase exports to markets in the ASEAN and some countries where it has bilateral trade agreements, such as Japan. It will look at ways to boost exports to the EU.
Vietnam has nine free trade agreements, including deals with India, South Korea, Australia, and New Zealand. Seven more are being negotiated. The more free trade agreements Vietnam signs, the less it will have to rely on China and its Regional Comprehensive Economic Partnership for the benefits of international commerce. Vietnam is more active than other countries in forging trade deals, and that allows it to diversify its risk. Because of its export-driven economy, Vietnam probably would have benefited from the Trans-Pacific Partnership trade treaty more than any other nation. The TPP would have dramatically lowered or eliminated the tariffs the US imposes on Vietnamese goods. The US is the largest customer for the apparel, electronics, furniture, and shoes that Vietnam makes.
TPP was not only about market access. It was also a driving force for reform, for transparency and anti-corruption. Australia is interested in resurrecting some version of the TPP with Vietnam and other Asian countries.
Textile printing show FESPA attracts exhibitors, visitors to Thailand
Written by FWThailand is hosting FESPA Asia 2017, February 15 to 17, 2017. The focuses of the exhibition is on wide-format digital, screen and textile printing, allowing visitors the chance to source all they need for their businesses under one roof. Domestic and international brands are exhibiting.
FESPA Asia is the latest addition to the FESPA portfolio of established trade print exhibitions. Designed to connect screen, digital and textile printing communities across the Asean region and beyond, this event brings together print professionals looking to discover the newest products, the latest innovations and the best advice.
FESPA is the largest specialty and creative printing federation with 37 member associations, and has the philosophy of reinvesting in the global print community for sustainable growth across the board. French software house Caldera is presenting its award-winning print workflow solutions. Products that Caldera will be showcasing at the event include its premium signs and display solutions software and its market-leading textile-printing solutions. The new Caldera V11 RIP suite speeds up image processing and improves organisation for wide-format print businesses of all kinds.
Hexis is showcasing its new HXS5000, which offers 14 colors and allows application on flat and slightly curved surfaces. Senfa is displaying Decoprint, a range of coated textiles for large-format digital printers.
Solidaridad and WWF release list of companies to be assessed for their Sustainable Cotton Ranking
Written by FWA ranking system that scores apparel brands and other organisations on their use of sustainable cotton will be widened for this year. Pesticide Action Network (PAN) UK, Solidaridad and WWF have released the list of companies that will be assessed in the new round of their Sustainable Cotton Ranking. to be published in October 2017.
The second edition of the ranking will include major companies from all continents including from countries such as China and Brazil and online companies such as Zalando and Amazon. As in 2016, the ranking will score companies on their policy, traceability and uptake of sustainable cotton.
In the first report, which was published in June 2016, IKEA Group, C&A, H&M, and Adidas, were ranked highest while VF Corp and Kering scored less in the report which judged brands primarily on their use of organic cotton. Fairtrade cotton, cotton made in Africa (CmiA) and Better Cotton Initiative sourced cotton.
Solidaridad said the target list of companies has been expanded to offer a more global representation of consumer-facing companies estimated to use more than 10,000 metric tons of lint cotton annually and include companies from emerging markets and online retailers. It added that creating a list of the largest corporate cotton users is challenging as most companies do not publish the volumes they use in their products.
The first Cotton Ranking claimed most companies using variable cotton globally were failing to deliver on cotton sustainability, with just eight companies out of 37 showing positive progress in the ranking. By conducting a second Cotton Ranking in 2017, PAN UK, Solidaridad and WWF said they expect to see that more companies have taken steps forward on their sustainable cotton policies, traceability and sourcing. The report will also include a market update on the available supply and uptake of cotton from the main cotton sustainability standards (organic, Fairtrade, Cotton Made in Africa and Better Cotton).
Labour, tax reforms to boost apparel and leather sectors: Economic Survey
Written by FWThe Economic Survey for 2016-17 has said that labour and tax reforms are needed to boost employment creation in apparel and leather sectors as the two segments can become vehicles for broader social transformation in the country today. Noting that in both apparel and footwear sectors, tax and tariff policies create ‘distortions’ that impede India gaining export competitiveness, the Survey said that there is a need to undertake ‘rationalisation’ of domestic policies which are inconsistent with global demand patterns.
The Survey notes that India has an opportunity to push exports from apparel and leather sectors since rising wage levels in China have resulted in China stabilising or losing market share in these products and has recommended labour and tax reforms to make the country globally competitive. Apparel and Leather & Footwear sectors are eminently suitable for generating jobs that are formal and productive, providing bang-for-buck in terms of jobs created relative to investment and generating exports and growth, as per the Survey, which was tabled by Finance Minister Arun Jaitley in Parliament today.
However, it observes that the space vacated by China is fast being taken over by Bangladesh and Vietnam in apparels; and Vietnam and Indonesia in case of leather and footwear, while Indian companies struggle in face of a set of common challenges related to logistics, labour regulations, tax and tariff policy and disadvantages emanating from international trading environment compared to competitor countries.
An FTA with EU and UK in the case of apparel will offset an existing disadvantage by India’s competitors like Bangladesh, Vietnam and Ethiopia, the Survey notes. In case of leather and footwear, the FTA might give India an advantage relative to competitors. In both cases, the incremental impact would be positive,” it maintains.
The introduction of GST offers an excellent opportunity to rationalise domestic indirect taxes so that they do not discriminate in apparels against the production of clothing that uses man-made fibers, the Survey observes.
Gap to launch augmented reality app ‘Dressing Room’ soon
Written by FWThough the fashion industry and technology haven't traditionally amalgamated well, but Gap is looking to change that. The parent company Gap Inc., which also owns Old Navy and Banana Republic, is launching a new augmented reality app called ‘DressingRoom’. As in-store sales drop in favour of online orders, retailers are looking for new methods to engage their shoppers.
Built in collaboration with Google and start-up Avametric, the app will allow one to virtually try on clothes anywhere he/she goes. Users first enter information like height and weight, then the app places a 3D model in front of them. The model can try on different clothing items to see how they would look with that particular outfit. If one looks like how they look, the clothes can be purchased from the app as well.
Though the app is to launch in a few days, but it still is in its early stages. It currently only works with Google Tango enabled smartphones of which only the Phab 2 Pro from Lenovo is available. Besides this technical limitation, the app only shows what the clothes would look like. In order to get the fit and feel for the garment, a traditional dressing room is still the only option. Pokémon Go was the first highly successful augmented reality app, but Gap and other clothing retailers are hoping to grow the market. Time will tell if this kind of app can help retail with declining sales.
China textile industry de-couples itself from water use
Written by FWA new research from China has claimed that the country has been partly successful in de-coupling the growth of its textile industry from increases in water consumption and discharge. The researchers claim this is due to the better use of technology and water saving methods and stronger environmental laws in China.
The researchers found that the water footprint of China's textile industry strongly decoupled from the growth of its textile industry for five years (2002, 2006, 2008, 2011, and 2013) and weakly decoupled for four years (2002, 2007, 2009, and 2010) over the period 2001-2014. The researchers calculated changes in blue water (water consumption), grey water (water pollutants), and water footprints of the textile industry from 2001 to 2014. Later, the relationship between water footprint and economic growth was then examined.
Over the entire period, there was a slight decoupling trend which the researchers indicate was due to the better use of technology and a growth in the amount of water saving methods being employed by the textile industry. The concept of decoupling indicates the reduction of a mutual relationship between two or more physical quantities. Decoupling analysis is widely applied in studies of economic growth in relation to resource consumption and environmental pressure.
The research paper says that the decoupling trend as a whole was good but the development of the textile industry was not completely independent of the water footprint. In general, during the sampling period, China's textile industry has controlled the amount of wastewater discharge and achieved significant effects on wastewater management.
Century Textiles & Industries Ltd. declares its unaudited financial results
Written by FWMumbai based textile manufacturer, Century Textiles has declared its unaudited financial results for the quarter ended on December 31, 2016. Following are the excerpts from the Q3 results:
Net profit stands at Rs 13.9 cr vs loss of Rs 8.5 cr (YoY); Total income recorded is down by 7.2 per cent at Rs 1962 cr vs Rs 2114.4 cr (YoY); EBITDA is up by 36.5 per cent at Rs 214 cr vs Rs 157 Cr (YoY); and EBITDA margins stand at 10.9 per cent vs 7.4 per cent (YoY). The stock is trading flat with mixed sentiments after the Q3 results, witnessing spurt in volume by more than 1.41 times in Tuesday’s trading session.
Century Textiles & Industries Ltd is currently trading at Rs 857, up by Rs 0.5 or 0.06 per cent from its previous closing of Rs 856.5 on the BSE. The scrip opened at Rs 860.4 and has touched a high and low of Rs 870 and Rs 841.9 respectively. So far 2282464(NSE+BSE) shares were traded on the counter. The current market cap of the company is Rs 9566.73 crore.
The BSE group 'A' stock of face value Rs 10 has touched a 52 week high of Rs 1037.25 on 01-Nov-2016 and a 52 week low of Rs 403.8 on 29-Feb-2016. Last one week high and low of the scrip stood at Rs 862.8 and Rs 817 respectively. The promoters holding in the company stood at 47.75 per cent while Institutions and Non-Institutions held 23.21 per cent and 29.03 per cent respectively. The stock is currently trading above its 100 DMA.
Marking the best rally of cotton in six months, Chinese buyers have, this year, committed to purchase almost five times more American cotton than at this time last year, the US government has said in a report. With the pledge, the price of the commodity is heading for its biggest monthly advance since July last year. Hedge funds are positioned for more gains, holding the second-most bullish wager ever.
American growers are expected to ship the most cotton since 2013, data from the USDA reveal. Sales growth is being driven by purchases in Indonesia and Vietnam as well. While rising demand has sparked two straight years of rallies, futures in New York are still trading about 65 per cent below a record set in 2011, leaving the fiber at affordable levels for consumers.
The net-long position in cotton rose 3.2 per cent to 87,341 futures and options in the week ended January 24, a data published by the U.S. Commodity Futures Trading Commission three days later show. That was just shy of an all-time high of 90,215 contracts set on January 10, according to the figures, which go back to 2006.
Cotton traded on ICE Futures U.S. in New York climbed 2.5 percent last week. Prices added 0.3 per cent to 75.06 cents a pound on Monday and are up 6.2 per cent this month. Futures touched 75.37 cents on January 5, the highest since August.
Consumption will probably outstrip production by 1.24 million metric tons this year, Cotlook, a Birkenhead, England-based research company, said last week. That can help to erode global stockpiles, which the USDA estimates at 90.6 million bales, each weighing 480 pounds (218 kilograms).
Wool producers across Australia happy to see prices of wool high
Written by FWSeeing that the market continues to maintain strong and so the prices, after reaching record levels, wool producers across Australia are a celebrating lot. Last Wednesday, the Eastern Market Indicator (EMI) — Australia's wool market benchmark hit a historic new level of 1439 cents a kilogram and then fell back to finish the week at 1434 cents a kilogram.
The previous record of 1425 cents were standing strong 2012. And the new lofty prices have many producers confident for the year ahead. Producer Matt Ashby from Gulnare, South Australia said that producers were relieved to see some good prices.
New South Wales producer John Alcock from Bombala agreed that the fashion industry was utilising more Australian wool. After the finer microns took off, he was of the belief that it was largely due to the fact that the Chinese have realised if they want good quality materials they've got to use the nice, finer, softer wools with good, traditional crimping and that drape well. No doubt, they had to struggle to get the better quality wools, he rued.
Pakistan PM asks Japan to consider tariff exemption for textiles
Written by FWThe Pakistan Prime Minister Nawaz Sharif met Japanese envoy Takashi Kurai in federal capital on Wednesday, it has been reported. While conferring, the prime minister said that Pakistan considers itself a close friend and trade partner of Japan that co-operated in Operation Zarb-e-Azb against terrorism to ensure peace. He said that his country was hopeful that Japan will review the decision of including Pakistan in its travel advisory list.
The premier asked Japan to consider a three to four year tariff exemption for Pakistani textile products. The move will facilitate the country’s struggling textile industry, he observed. He suggested that there are plenty of investment opportunities between Japan and Pakistan in the fields of trade, energy and infrastructure development. He was of the feeling that both the countries need to sign bilateral free trade agreements. He categorically stated that he would welcome investments by Japanese companies in Pakistani industry.
On the other hand, Japanese ambassador praised economic growth in Pakistan. He said that Pakistan has become a suitable country for business in the sight of Japan.
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Vietnam’s Textile-garment trade surplus to touch US$15.5 billion
Written by FWVietnam’s textile and garment industry may have a trade surplus of US$15.5 billion on total export revenue of US$31 billion this year, said Vu Duc Giang, Chairman of the Vietnam Textile and Apparel Association (VITAS).
At a press conference in HCMC on December 11, Giang said the sector has gained strong export growth this year, at 10.23 per cent, when compared to 2016, and the momentum is to continue into next year with export earnings forecast at US$33.5 to 34 billion. This segment has faced multiple challenges early this year, but the situation has changed for the better since the Q2 of this year, Giang noted.
Of the total export revenue of this year estimated at US$31 billion, textiles and garments contributed to an estimated US$25.91 billion, fabrics US$1.07 billion and cotton US$3.51 billion.
Local enterprises have tapped new markets including China, Russia and Cambodia while holding on to traditional markets such as the U.S., the EU, Japan and South Korea. It is noteworthy that local firms have managed to switch production, from processing exports for foreign firms to free on board (FOB)and original design manufacturing(ODM), Giang said. Discussing next year’s business, Giang exults that many textile and garment firms have signed big export contracts enough for production in the first haft of next year and buyers of these products have shown their confidence in product quality and delivery time of Vietnamese firms.
To achieve the target set for next year, VITAS advised textile and garment enterprises to change their production methods and meet requirements of import markets, enhance competitiveness, invest in new techniques and technologies, diversify products and build links among enterprises.
Giang said the price competition will be tough as many other countries have also sought to undercut Vietnam, especially apparel manufacturers from China, Bangladesh, Sri Lanka, Myanmar and Cambodia. Therefore, local enterprises must employ highly-skilled workers, invest in modern equipment and speed up automation.
According to VITAS, domestic firms have to import 86 per cent of fabrics for garment production as locally- produced fabrics have not met standards of major import markets, while locally-produced fabrics are subject to taxes while imported fabrics used for export processing are tax-free.
The textile and garment sector is also experiencing difficulties due to rising production and labour costs. Vietnam currently has nearly 6,000 textile and garment enterprises with 2.5 million employees.
Malaysia, Pakistan hold seminar on doing business in Pakistan
Written by FWThe Malaysia External Trade Development Corporation (MATRADE) and High Commission of Pakistan Malaysia jointly organised a seminar on ‘Doing Business with Pakistan on 21st December in Kuala Lumpur. The seminar saw participation of over 200 Malaysian companies and Pakistani businessmen.
Speaking at the seminar, the High Commissioner of Pakistan in Malaysia, Syed Hassan Raza said that both countries are negotiating to further reduce duties on existing and additional tariff lines to facilitate businesses under the Free Trade Agreement (FTA). The High Commissioner highlighted the investment opportunities and trade potential in Pakistan and informed the participants that there were numerous opportunities for the companies in both countries, having FTA since 2008.
The current trading basket of both the countries is limited to Palm oil, fibre board, rubber electrical and electronic equipment from Malaysia while from Pakistan main items exported are cotton, textile, rice, maize, vegetables. On investments, Raza mentioned that present investment regime is the most liberal in the region. Foreign equity could be 100 per cent owned by foreign investor and there were no restriction on repatriation of profits/royalties almost all sectors are open for investment and one-window facilitation were some of the highlights of new policy. He emphasized that Pakistan was a stable, peaceful and welcome foreign investors to visit any part of the country.
Pakistan govt. to spend Rs 20 bn to enhance exports in three years
Written by FWTo enhance Pakistan's export competitiveness and institutional strengthening under the Strategic Trade Policy Framework (STPF) 2015-18, the federal government would spend Rs 20 billion in the next three years. In response to emerging international changes, several other initiatives are being implemented to enhance the export basket and market share. The total volume of Pakistan's exports that was $24.5 billion in 2013 fell to $20.8 billion in 2016.
Among the steps taken by the government to enhance exports are: sales tax zero-rating regime for five export oriented sectors comprising textile, leather, carpets, surgical and sports goods has been introduced from July this year. The other steps were establishment of Export Promotion Council for Pharmaceuticals & Cosmetics, and Rice Export Promotion Council, support for import of plant & machinery to strengthen supply chain and encourage value addition and performance based incentive (PBI) to offset burden of higher utility costs and local levies and taxes on export sectors.
Under short-term export enhancement measures, four product categories comprising basmati rice, horticulture, meat and meat products and jewellery were aimed at with parallel focus on markets including Iran, Afghanistan, China and European Union. An additional Rs 6 billion was available this fiscal year to exporters through Textile Policy. 2014.
ICICI Securities sees Vardhman Textiles reporting profit of Rs 346.2 crores
Written by FWThe second quarter (July-September) earnings estimates of the apparels sector by ICICI Securities is out. The brokerage house expects Vardhman Textiles to report a net profit of Rs 346.2 crores up 94.2 per cent quarter-on-quarter Q-o-Q). The revenue of the textile firm is expected to decrease by 0.4 per cent Q-o-Q (down 8.8 per cent Y-o-Y) to Rs 1,502.7 crores. Earnings before interest, tax, depreciation and amortisation (EBITDA) are likely to fall by 9.7 per cent Q-o-Q (down 8 per cent Y-o-Y) to Rs 282 crores.
Consolidated revenues are likely to decline 8.8 per cent YoY to Rs 1,502.7 crores on account of sale of stake in Vardhman Yarns and Threads. On the segmental business front it is expected that the yarn volumes would increase by 2 per cent YoY while the fabric volume is expected to increase by 7 per cent YoY. Consolidated operating margins are likely to increase marginally by 16 bps to 18.8 per cent on account of higher margins in the acrylic business. On the operational front, Vardhman's performance is expected to be moderate.
However, owing to stake sale (40 per cent) in Vardhman Yarns and Threads, an exceptional income to the tune of Rs 210 crores is expected this would boost consolidated net profit to Rs 346.2 crores v/s net profit of Rs 125 crores in Q2FY16. Excluding the exceptional profit, net profit is expected to increase by 9 per cent YoY to Rs 136.2 crores.
