In a major boost to the textile industry and to enable forward and backward integration in the sector, the government of Gujarat has announced establishment of two mega textile parks during the budget presentation in Gandhinagar on Wednesday. These parks will be set up as part of the Union Budget announcement, of setting up seven mega textile parks. Industry players feel the move will go a long way in making the industry globally competitive.
“Mega Investment Textile Parks will make the industry more competitive at a global level and this will not just boost exports but at the back-end, it will also help generate more employment. At the same time, a single cluster will definitely help bring in more investments in the textile sector,” said Chintan Thaker, co-chair, Assocham – Gujarat state Council.
“This will give an impetus to MSMEs in the textile sector, which is the highest employment generator after agriculture. It will help ancillary units in textiles in a big way. Moreover, the plug-and-play model for the park will aid employment generation and also give an ecosystem to exporters and domestic manufacturers,” said Thaker.
Industry stakeholders also said that the state government’s announcement on the Rs 1,500 crore outlay for providing subsidy to the industries under the textile policy will also go a long way in boosting competitiveness of the domestic manufacturers.
Vijay Purohit, president, Gujarat Garment Manufacturers’ Association (GGMA), said, “A cluster approach not just brings in investments but instead it also helps build an entire textile value chain, which is currently very segregated in different geographical locations. This will help the industry grow, scale-up and innovate while being more competitive.”
Source: The Times of India
Industry body Ficci on Thursday said the Haryana government's new legislation that provides reservation in private jobs for local candidates will "spell disaster" for industrial development in the state. Ficci President Uday Shankar said the government's move to reserve 75 per cent jobs for the local population in private sector will spell disaster for the industrial development and private investment in the state.
"Investors and entrepreneurs need to source the best human resources available in the country to be competitive and successful. To force them in such a regressive straight-jacket will force them to look beyond Haryana and this will ultimately hurt the interests of the state," Shankar said.
Further, the industry body said it believes that this move is against the spirit of the Constitution that gives the citizens of India the freedom to work anywhere in the country.
Anupam Varma, partner at law firm J Sagar Associates, said the vesting of authority in a state government to decide the qualification, and skill etc. of employees of a private employer will be inimical to the ease of doing business initiatives of the central government.
"The power of entry and inspection given to the authorised officers would open a pandoras box of grievances and harassment of employers," Varma said.
According to him, the legality of the Act is prima facie suspect and may not be able to withstand judicial scrutiny on the touchstone of Article 19(1)(g) and 16(2) of the Constitution of India.
"The Act impinges upon the sacrosanct fundamental right of freedom to practice any occupation or business. The implementation of the Act just when the industrial and business activities are resuming after the COVID pandemic might result in an exodus of investors from the state," Varma said.
On Wednesday, industry body CII urged the Haryana government to "re-look" at the legislation, saying reservation impacts productivity and competitiveness.
Haryana Governor Satyadeo Narain Arya has given assent to the bill providing 75 per cent reservation in the private sector to job seekers from the state. The quota will initially apply for 10 years.
Apart from tackling unemployment among local people, the state government has said the law will discourage the influx of migrants seeking low-paid jobs, which has a significant impact on local infrastructure and leads to the proliferation of slums.
Source: The Economic Times
With a view to strengthen research infrastructure for the development of industry and academia in Telangana and Andhra Pradesh, SVKM’s NMIMS Hyderabad campus signed a Letter of Intent (LoI) with Ficci Telangana & AP State Council (Ficci-TAP).
The agreement focuses on the agri and food processing, handloom and textiles, handicraft, heritage/museum marketing, local tourism and hospitality, and yoga and wellness industries.
The two organisations will work closely to bring more practice-oriented research through case writing and policy initiatives in core areas of growth, skill development, innovation, and sustainability. The letter also proposes setting up of Ficci-NMIMS Hyderabad Center for Indian Business as a joint initiative to work together.
Dr Tapan Kumar Panda, director of NMIMS Hyderabad said, “Our faculty and students will be working actively to facilitate research work for the development of the industrial sector in the region. Our aim is to facilitate growth, bring innovation, and ensure sustainability. One of the core objectives of the Ficci-NMIMS Hyderabad Center for Indian Business is to work with MSMEs as core drivers of economic growth and innovation.”
Commenting on the collaboration, Akhilesh Mahurkar, director of Ficci Telangana & AP State Council, said, “In a highly competitive and rapidly evolving economy, research can help usher in product innovation, predict disruptive trends, and identify new avenues of growth. This collaboration will help cement this critical relationship between industry and academia.”
The LoI was signed in the presence of Ficci representatives Rao and Dr Ravi Kiran, deputy director and other senior faculty members of NMIMS Hyderabad.
The two organisations will work closely to develop the research infrastructure in the Telugu States, collaborating on various knowledge platforms in creating and disseminating relevant industry-oriented information.
Source: Telangana Today
Indian merchants have almost entirely stopped signing new export contracts with Iranian buyers for commodities such as rice, sugar and tea, due to caution about Tehran's dwindling rupee reserves with Indian banks, six industry officials told Reuters.
"Exporters are avoiding dealing with Iran since payments are getting delayed for months," said a Mumbai-based dealer with a global trading house.
Iran's rupee reserves in India's UCO and IDBI Bank NSE 6.21 % , the two lenders authorised to facilitate rupee trade, have depleted significantly and exporters are not sure whether they would be paid on time for new shipments, the dealer said.
Under U.S. sanctions, Tehran is unable to use U.S. dollars to transact oil sales.
Iran previously had a deal to sell oil to India in exchange for rupees, which it used to import critical goods, including agricultural commodities, but New Delhi stopped buying Tehran's oil in May 2019 after a U.S. sanctions waiver expired.
Tehran continued using its rupees to buy goods from India, but after 22 months of no crude sales, Iran's rupee reserves have fallen, said the sources, who asked not to be named, citing business privacy.
Iran's reserves have reduced significantly and "will be over soon probably because trade has stopped," said a senior official with IDBI Bank.
The Islamic Republic was buying mainly basmati rice, tea, sugar, soymeal and medicines from India.
"Rice exporters are concerned about the current payment mechanism," said Vijay Setia, a rice exporter and former president of the All India Rice Exporters' Association (AIREA).
"There was too much of delay in payments from last year 's shipments. Exporters received payments six months after shipments," Setia said.
In the first quarter of 2020 Iran imported nearly 700,000 tonnes of basmati rice from India, but in the same period this year shipments would be "very negligible," Setia said.
Last year, Iran was the biggest buyer of India's basmati rice and sugar. Iran fulfils more than one-third of its sugar and rice demand through imports, traders estimate.
Iran's trade ministry and Central Bank of Iran declined to comment on the matter.
Payments hit by sanctions
"We are in talks with Indian government and Indian traders to resolve these payment issues and I believe it will be resolved soon," said a senior Iranian official, who asked not to be named due to the sensitivity of the matter.
"The delay in payments are due to U.S. sanctions on Iran's financial system that has made such payments very difficult," he said.
As rupee reserves have depleted and dollar trade is not allowed, sugar exporters are exploring options to conduct trade in euros, Rahil Shaikh, managing director of MEIR Commodities India, said.
Sugar exporters are focusing on other destinations like Indonesia and Sri Lanka, as Iran is unlikely to buy significant quantities this year, said Shaikh.
India's overall exports to Tehran fell 42% in 2020 from a year ago to $2.2 billion, the lowest in over a decade, said an official with India's Ministry of Commerce and Industry.
The fall is continuing in 2021 and in January this year exports more than halved from a year ago to $100.20 million, the official said.
India's ministry of commerce and industry did not immediately respond to a request for comment.
Trading houses and exporters were hoping new U.S. President Joe Biden could reverse sanctions imposed by his predecessor Donald Trump on the oil-rich country.
"Exports would rebound even if Biden administration provides a few concessions to Iran like allowing oil trade in rupees," said a Mumbai-based dealer with a global trading firm.
Source: The Economic Times
The meteoric rise of India’s personal protective equipment (or PPE) industry is now a familiar tale, extolled by ministers and manufacturers alike. Nevertheless, it merits a retelling. A year has passed since the first coronavirus infection was detected in Wuhan, China, setting off one of the great events of the 21st century. When COVID-19 was declared a pandemic in March 2020, the World Health Organisation estimated that the global healthcare industry would need an astounding 89 million masks, 78 million gloves and 1.6 million goggles every month to effectively fight the disease. To ensure this, global PPE manufacturing would need to be boosted by 40 percent.
At the time of this announcement, India had no domestic PPE manufacturing capabilities and was entirely dependent on imports. Two months later, over 600 companies became certified PPE producers (including big textile players and several start-ups), propelling India to the world’s second largest producer of protective gear, behind only China.
What India needs now is an ecosystem that can help it emerge as a global hub for protective gear. As management guru Peter Drucker famously stated, “Because its purpose is to create a customer, the business enterprise has two – and only these two – basic functions: marketing and innovation.” It is precisely these two functions that can help create this ecosystem.
The role of public R&D investment
India may have managed to halt its reliance on PPE imports, but it is not alone. Efforts are currently underway in nations like the United States and the United Kingdom to boost domestic manufacturing to reduce their reliance on Chinese and Asian imports. If Indian manufacturers are to effectively compete in these markets and others, they will need to manufacture to global standards at low costs. Increased public investment in R&D will play a crucial role here.
The groundwork for this has already been laid. In the immediate aftermath of the COVID-19 outbreak, the Ministry of Textiles proactively contacted manufacturers and testing facilities across the country to build a supply chain from scratch. It initiated localised testing programmes, beginning with the South India Textile Research Association (SITRA) in Coimbatore, and then going on to include the Defence Research & Development Organisation (DRDO) in New Delhi and Ordnance Factories in Ambernath, Kanpur and Muradnagar, among other facilities.
India quickly demonstrated its potential to supply affordable PPE to the world. By July 2020, the supply of indigenous PPE kits had exceeded domestic demand and India exported kits to the US, the UK, the UAE, Slovenia and Senegal. Attention must now be given to enhancing quality.
As a recent report by the Institute of Competitiveness suggests, this can be achieved by implementing robust quality control (QC) and quality assurance (QA) procedures common to all manufacturers. This can help ensure consistent quality and reduce testing and rejection overheads. Further, India still relies on exports for critical components such as seam sealing equipment. Greater R&D investment by the government to enhance PPE quality can help circumvent these challenges.
Reaching out to the world
While PPE manufacturers must prioritise quality and pricing to trade competitively, marketing is what will ultimately help them stand out from the crowd. Strong branding and marketing will help manufacturers in India distinguish themselves from their competitors abroad by allowing them to emphasise their affordable pricing and quality to a global market. Aside from providing manufacturers with greater recognition, it will help them generate more customers, improve trust and strengthen their business value.
With the pandemic accelerating digital adoption, manufacturers in India must enhance their online presence by leveraging digital, content and social media marketing. These channels can help them increase brand awareness, boost sales and position themselves as leading industry players.
Across sectors, more than 90 million small businesses are present on Facebook alone today, with LinkedIn being the second-most popular social platform for B2B marketers. Ninety-four percent of businesses use social media for their content distribution. Seventy percent of marketers are actively investing in content marketing, while 80 percent of marketers believe that video content has directly increased their sales.
The market for PPE is growing exponentially. In May 2020, the domestic market in India alone was worth at least INR 10,000 crores. In five years, the global PPE market is expected to be worth USD 92.5 billion. With this comes an opportune moment for India to shine globally.
Source: The Financial Express
Home textiles major Welspun India's board has approved raising up to $100 million (approximately ₹750 crore) in one or more tranches.
The board of directors has "approved raising of borrowing of up to a maximum of $100 million in one or more form or instruments, including but not limited to loans, ESG Bonds, nonconvertible debentures (NCDs), ECBs, etc, may be raised in form of domestic or overseas issuance... in one or more tranches", Welspun said in a regulatory filing.
The board also authorised approaching the shareholders seeking requisite approvals to be obtained by way of a general meeting.
Shares of Welspun India were trading 0.99% higher at ₹71.25 apiece on the BSE.
Source: The Mint
Prices of Indian cotton have increased 5% in the past one month, following the bullish trend in international prices. However, cotton exports are strong as Indian cotton is cheaper than the overseas varieties.
Traders, millers and brokers are upbeat that the rising trend in cotton prices will sustain in 2021-22 owing to projections of lower sowing in major cotton growing countries such as the United States, Brazil and India.
Cotton prices have increased to Rs 46,000 per candy of 356 kg from Rs 44,000 over the past month as the domestic cotton production is expected to be much lower than expected earlier. As against the earlier estimate of 40 million bales, the industry now expects the 2020-21 cotton production to be about 33 million bales.
Projections of lower output in the next cotton crop in major cotton producing nations including the US and Brazil as farmers shift to maize and soybeans, which have given better returns, have also supported domestic prices.
Indian cotton prices being 13% cheaper than the prevailing global cotton prices, exports are expected to be higher than earlier estimates of 6 million tonnes. The industry is keenly awaiting the decision of the Pakistan government regarding import of cotton from India.
"Traders are watching if Pakistan, traditionally the largest importer of Indian cotton, can open its doors for Indian cotton as reportedly demanded by its cotton-based industry from the government of that country," said Pradip Jain, president, Khandesh Ginning and Pressing Association.
Thanks to good prices in the open market and good demand from traders and millers, the Cotton Corporation of India (CCI) has offloaded 75% of its cotton stock this season. "Our opening stock was 115 lakh bales of 170 kg each on October 1, when the new cotton season began. We procured 92 lakh bales of cotton at minimum support price (MSP) during the ongoing 2020-21 cotton season. Of the total stock of 207 lakh bales, we are now left with only 50 lakh bales," said Pradip Agarwal, chairman, CCI.
Since March 1, the CCI has offered a free period to millers as well as traders, allowing buyers to purchase cotton at today's price and lift it up to 90 days later depending upon the quantity they opt to purchase.
Source: The Economic Times
Union Minister of Textiles Smriti Irani has assured to address Tirupur’s apparel industry-specific issues.
Tirupur Exporters’ Association (TEA) President Raja M. Shanmugham recently met Smriti Irani, Upendra Prasad Singh, Textiles Secretary, and raised some important issues.
On behalf of Tirupur’s apparel industry, Raja appealed to address a slew of knitwear issues including reduction of sales turnover threshold limit for knitwear unit from Rs. 100 crores to Rs. 50 crores to avail the incentive under envisaged Product Linked Incentive (PLI) Scheme, immediate announcement of RoDTEP rates with additional benefit of 2 per cent or 3 per cent for a shorter duration to offset the increasing yarn prices, extension of Interest Equalisation Scheme with 5 per cent subsidy for another three years.
He has also specifically noted the difficulties being experienced by exporting units post Union Budget in submission of bond for clearing accessories. Moreover, no procedure has been stated for closure of the submitted bond, he added.
The Minister has assured to address the issues stunting the growth of Tirupur cluster.
Raja, who had a detailed discussion on various issues with Textile Secretary, extended an invitation to visit Tirupur to understand the ground realities. The Secretary was also positive and very keen to address the issues and promised to visit the region.
Source: Apparel Online
Prime Minister Narendra Modi has directed the cabinet secretary to prepare a methodology to operationalise infrastructure projects in phases as and when ready, rather than waiting for the completion of the entire work. This came amidst PM also asking Ministries to accord priority to infrastructure projects in East India, a region where BJP wants to make political inroads.
At a February 24 review meeting, whose minutes ET has reviewed, Modi has directed that planning for all infrastructure projects “should be redesigned to adopt a pragmatic and a commercial approach”. This would involve a project being compartmentalised into sections that can be operationalised as and when ready, the PM has directed, as per the minutes. “Ministries, departments, states and UTs (union territories) could adopt this methodology for all infrastructure projects in the future. Cabinet secretary to study this and issue suitable instructions to the ministries concerned,” the minutes have noted regarding the PM’s directions.
ET has learnt that the new methodology has since been under preparation under cabinet secretary Rajiv Gauba.
This could fundamentally change how infrastructure projects are delivered in the country and ensure people get the benefit of such projects on the ground much quicker, a senior government official told ET. The official cited the example of the Ahmedabad-Mumbai High-Speed Train project which is expected to be operationalised in the Gujarat section earlier than in Maharashtra, or the Delhi-Meerut Expressway which has been operationalised in sections since 2019 with the road to be fully ready by the end of this month.
Inviting global CEOs at the World Economic Forum in January to invest in India, Modi had said India would have infrastructure needs worth $4.5 trillion by 2040. At the February 24 meeting, the PM expressed his concerns over delays being observed in the execution of some infrastructure projects, and directed that all pending issues be resolved in a time-bound manner in Mission Mode.
Act East, PM directs
At the February 24 meeting, the PM also directed that priority be accorded by central ministries and state governments on infrastructure projects like rail and road in the eastern part of India. This came while the PM was reviewing projects like doubling of a 159-km railway line in Jharkhand, the 45-km capital connectivity project between Sivok and Rangpo in West Bengal and Sikkim, the Jagdishpur-Haldia-Dhamra pipeline project in Odisha and West Bengal, and a 350-km road project between Aizawl and Tuipang in Mizoram. The PM described the last project as an “important part” of India’s ‘Act East Policy’, while directing for speedy completion of all the said projects.
Modi said the Jagdishpur-Dhamra pipeline project should be completed by the petroleum ministry in Odisha by the end of 2021 and in the West Bengal stretch by June 30, 2022.
The PM also directed that states accord priority to roads constructed under the Bharatmala Pariyojana and provide the necessary support for timely completion, while reviewing an economic corridor project in Tamil Nadu. He has also asked for “special attention” to be paid to the quality of the roads constructed under the Pradhan Mantri Gram Sadak Yojna (PMGSY) and a mechanism be developed for ensuring that the projects adhere to good quality, according to the minutes.
Modi said at the meeting that regions where the terrain is a constraining factor (like in J&K), a differentiated strategy and plan be formulated regarding the PMGSY.
Single-use plastic
Modi has directed the Ministry of Environment to issue the final notification on single-use plastic by July 2021, and said all states should form a special task force to work on the elimination of the material in a mission mode. “Ministry of Environment, Forest and Climate Change and all states should launch a targeted and wider awareness campaign and organise a hackathon and seek to engage startups to promote innovations in areas of alternate materials, recycling, circular economy etc.,” the PM said.
Source: The Economic Times
Since the Pulwama attack, Pakistan has lost its MFN status with India thereby impeding the import of duty-free cotton
Hopes of Pakistan importing cotton from India have been raised after New Delhi and Pakistan renewed their agreement to observe a ceasefire along the Line of Control and the international border in Jammu and Kashmir last week.
But there are a few hurdles, especially political ones, for Indian cotton to surmount before it can reach Pakistan, according to traders and industry officials.
Earlier this week, Pakistan’s The Express Tribune, quoting Islamabad Commerce Ministry officials, reported that adviser to Pakistan Prime Minister Imran Khan on Commerce Razak Dawood would decide this week on importing cotton and yarn from India.
The report was on the heels of Dawood telling the media on February 13 that Pakistan had no plans to allow the import of duty-free cotton from India in order to bridge the shortfall in the local market.
Higher prices, lower crop
The statement came after Pakistan withdrew all import duties on cotton on January 2 this year. Earlier, it imposed a 11 per cent import duty.
Signs from Pakistan are ambiguous, particularly after Imran Khan headed a meeting yesterday on surging cotton yarn prices. Dawood tweeted that the Pakistan Prime Minister had “instructed to take necessary measures, including cross-border trade of cotton yarn, to keep the momentum of value-added exports”.
Yesterday’s high-level Pakistan meeting was held after raw cotton (kapas) prices increased to an 11-year high in the neighbouring country to Pakistani rupee 12,000 (Indian ₹5,560) per maund (37.32 kg).
Pakistan may resume import of cotton from India: Report
Cotton prices in Pakistan are literally on fire as its production for the current marketing year (August 2020-July 2021) is 24 per cent lower at 60.19 lakh bales (of 170 kg), according to the US Department of Agriculture (USDA).
The US agency estimates Pakistan cotton imports at 60 lakh bales.
Pakistan’s crop is lower as farmers cut cotton planting by 10 per cent, while the crop was hit by a heavy monsoon and severe pest infestation.
Pakistan trade, however, is pegging the crop even lower at 56 lakh bales, the lowest in 30 years.
The drop in Pakistan crop comes at a time when global cotton prices have increased sharply since June last year to 87 cents per pound (₹50,050 per candy of 356 kg) now. Since the beginning of this year, cotton prices have increased by over 11 per cent in the global market.
Cotton yarn prices gain sharply on surging cotton rates, demand
At the same time, prices of Shankar-6 cotton, the benchmark for exports, in India are quoting below ₹47,000 a candy.
Pakistan spinning mills could stand to gain from this as cotton could be transported by trucks across the border or even shipped from one of the western ports.
Besides getting cotton at a competitive price, they could also gain on the freight charges.
MFN status lost
The problem, however, is that after the Pulwama blast in February 2019 in which at least 40 Central Reserve Police Force (CRPF) personnel were killed, trade between Islamabad and New Delhi has come to a halt.
In retaliation to the blast and holding Pakistan responsible for it, the Indian government withdrew the most-favoured-nation status given to Pakistan and imposed 200 per cent Customs duty on imports from there.
Pakistan, on the other hand, has not been allowing imports from India and Dawood’s meeting reiterated this.
“There is no ban on exports to Pakistan from India. A political decision has to be taken. There is no political pressure here on us,” said a government procurement agency official.
Advantage CCI
When contacted, Cotton Corporation of India (CCI) Chairman and Managing Director PK Agarwal told BusinessLine that Pakistan would have to withdraw its curbs on the import of Indian cotton.
“Currently, Pakistan could be willing to buy any cotton but so far, no one has approached from that side,” he said.
The CCI is among the best-placed organisations in the country to supply cotton to Pakistan as, according to traders, it has at least 65 lakh bales in stock with it. The corporation has procured nearly 100 lakh bales this season (October 2020-September 2021) from growers.
India is also well-placed to meet any export demand as it is carrying record cotton stocks from last year. According to the Cotton Association of India (CAI), the carryover stocks are 125 lakh bales.
The Committee on Cotton Production and Consumption (CCPC), a body representing all stakeholders in the textile industry including government officials, has estimated the carryover stocks at 120 lakh bales.
The carryover from the current season has been estimated at 115 lakh bales by CAI and 97.95 lakh bales by CCPC, which means ample cotton is available for exports.
CCI’s Agarwal told BusinessLine last week that cotton exports could top 65 lakh bales this year. Traders, too, are coming around the view after expressing fears over shipping delays, including container availability.
Till the end of February, 37 lakh bales of cotton have been exported from the country.
On top of the record stocks, India’s cotton production has been estimated higher by the Committee on Cotton Production and Consumption (CCPC) at 371 lakh bales (358.50 lakh bales). Cotton Association of India has projected the output at 360 lakh bales, the same as last year.
CAI President Atul Ganatra said that no one from the government or trade had approached for the supply of cotton to Pakistan.
“It is very difficult in the current political situation to export to Pakistan,” he said on the possibility.
“Reports in the media are about Pakistan spinning mills asking their government to import from India since they are now relying on Africa and the US for their raw material,” said Anand Poppat, Rajkot-based trader in raw cotton, yarn and spinning waste.
“There has been no direct enquiry yet from Pakistan,” he said, adding that since Pulwama the political situation has not been conducive for exports.
Yarn imports
Besides cotton, there is also a demand for the import of cotton yarn. This has left the Pakistan textile industry divided.
While cloth and garment manufacturers are demanding that cotton yarn import be allowed to speed up manufacturing, spinning mills there are opposing this since it would be “disastrous to Pakistan’s spinning sector”.
In particular, it has opposed imports of cotton yarn from India, saying it could create a crisis in the spinning industry and lead to the closure of mills there.
But the value-added textile manufacturers have demanded permission to import cotton yarn from India, pointing to how Islamabad has allowed Indian drugs and pharmaceuticals to be imported.
Representatives of the value-added sector have directly told Pakistan Prime Minister’s advisor Dawood that “it is also most crucial to allow the import of cotton yarn from the neighbouring country through the Wagah border as the quality yarn is not available and prices have increased manifolds.”
“Pakistan can easily buy 10-15 lakh bales of cotton from India given the shortage it faces. Trade on both sides will gain but a political decision has to be made,” Poppat said.
Traders and officials concur with the view.
Source: The Hindu Business Line
The Goods and Services Tax (GST) Council, the apex federal body on indirect taxation, will consider removing anomalies in the duty structure in several sectors such as textiles, fertilizers and footwear this month, two people aware of the development said.
Terming it a long-pending issue, the two people who spoke on condition of anonymity, added that it requires urgent attention now because the businesses involved are unable to claim input-tax credit (ITC) because of higher levies on raw materials compared to the finished goods. This is referred to as an inverted duty structure—a situation in which inputs are taxed at a higher rate than finished goods.
The Council could not correct this in the past, particularly during the pandemic, because it would have had an adverse impact on either GST revenue collections or retail prices of the finished products, one of the two said. The GST Council is chaired by the Union finance minister and has finance ministers of states as its members.
The Council is expected to meet this month, but a date is yet to be finalized, the first person said.
“Inverted duty structure can be corrected either by reducing GST on inputs or by raising levies on finished products. Now, with rapid recovery and robust GST collections, this matter can be resolved. But,the final decision will depend on the GST Council," the second person said.
The economy entered growth mode in the third quarter with 0.4% growth after contracting for two consecutive quarters due to a 68-day hard lockdown since 25 March to check the spread of covid-19. This also reflected in GST collections.
After remaining in contraction mode for six months in a row, GST revenue turned positive from September 2020 and crossed ₹1 trillion mark in subsequent months. It has now been above ₹1 trillion for five months
Archit Gupta, founder and chief executive officer (CEO) of fintech platform ClearTax, said the Council has previously discussed the issue, but without a conclusion. “The main reason is the loss of revenue resulting from any reduction of tax rates on the inputs," he said. “The inverted tax structure causes a ripple effect on the funds flow of a business. It blocks the working capital for businesses due to input tax credit accumulation," he added.
According to Divakar Vijayasarathy, founder and managing partner of consulting firm DVS Advisors LLP, GST on input is higher than GST on output in some manufactured goods such as footwear, man-made yarns, and LED lights. “The most critical impact is on the working capital of the businesses since GST paid at higher rates on inputs is blocked till the grant of refund," he said. The refund process is cumbersome and tends towards litigation, he added.
Experts said such anomalies should also be corrected vis-à-vis service inputs.
“The solution is imminent as confirmed by the finance minister in the budget and the time has come to put up the matter for the consideration of the Council," the first person said.
Source: The Mint
For the last 4 or 5-months Bangladeshi spinners are having an upward trend after a year of calamity in COVID-19. Following the trend, many investors are planning to set up a new spinning factory or increasing capacity. There is indeed a huge gap between total yarn requirements for Bangladesh’s readymade garment (RMG) industry and the capacity of local spinners’. Which has been fulfilling with imported yarn.
As the imported yarn price – mainly from China and India – are much cheaper, local spinners are always fighting in yarn market to keep their prices down. Spinners are really worried about cheap Indian yarn flooding the market, especially for 100% cotton yarn.
The situation is so grim that 100% cotton yarn business in Bangladesh are now totally depends on Indian yarn business strategy. In last two year, India sold their huge stock of cotton fiber in Bangladesh converted into yarn due to lack of demand in China market (trade war impact) and good cotton production. That is why yarn price was too cheap and we local spinners grieved to survive.
We know in spinning raw material contributes around 60~70% of the total cost, so if we can’t play with the spinning process of raw materials then it is tough to survive. We can consider the below points for 100% cotton yarn business:
Oppositely, if we think about different fiber yarn like Natural, Synthetic, Regenerated yarn, or blended yarn then beneficial for small factories like 50,000 Spindle. This unit will be customized with customer requirements. The positive side of this type of this kind of Spinning Mill is …
Also, we have to consider below threats in the yarn business, which is already we are facing and gradually new challenges are coming due to business mechanism by other’s country and end buyers:
But we have the opportunities to develop our local yarn business in other’s way ….
Finally, we need mutual support from BGMEA, BKMEA and BTMEA for business projection, scope and future demand to develop the yarn business in a statistical way for sustainable business. Also need a regular study on our capacity, market demand, obstacles, and future opportunities. If required need to develop a specialist team for that.
Source: Textile Today
IKEA is bullish about the growth of its children range and expects this segment to witness 100 per cent growth in next few years.
Kavitha Rao, Country Commercial Manager, IKEA shared that the children segment is a big focus for the company and it reflects in the company’s stores and website also. Currently, this segment contributes 6 to 8 per cent in company’s revenue, which can further grow by 10 to 12 per cent in coming years.
Apart from the home furnishing range, currently, the company is sourcing only soft toys from India as soft toys have been India’s strength on the backdrop of textiles.
At the same time, the retail giant is also exploring the other possibilities that exist in toys for IKEA’s children range. It is also looking at accessories for the children.
In the recently concluded Toy fair, IKEA also explored new manufacturers. Notably, 5 large-scale top manufacturers are in touch with IKEA with regard to starting the supply of toys.
On IKEA’s expansion and sourcing strategy in India, especially regarding the toys, Kavitha believes that as far as the number or volume of cotton toys is concerned, it is too early to say anything as it’s in the early stage of discussion with the manufacturers.
However, she added that the company would like to achieve the target of 30 per cent of local sourcing in the toys segment also. And it can be achieved as an ecosystem for the same is taking shape in terms of quality standards and as well as allowing multiple suppliers to scale and space.
As of now, the company has focused on sourcing toys from India for its Indian stores only, but there is enough possibility that it would scale the Indian sourcing for its global stores.
The company is also motivating social entrepreneurs through various channels and wishes to source as much as possible from India.
Sourcing textile products from India for the last 35 years, IKEA has achieved significant success in this regard. Therefore, there is enough probability that IKEA will have its significant sourcing from India.
Currently, it has stores in Hyderabad and Mumbai while the Bengaluru store is under construction. Similarly, Delhi is also on the radar of the company – not to mention its continual focus on digital business, which continues to grow.
The company recently bought a 48,000-square-metre plot in the city of Noida on the outskirts of Delhi and would develop the new site into a mall anchored by an IKEA store. It has planned to invest nearly 55 billion rupees (US $ 759 million) in the Noida project.
Source: Apparel Online
To quantify exactly how itchy a wool sweater might be when worn directly against the skin, or how soft a blanket spread on your bed can be, North Carolina State University researchers developed a method of measuring fabric’s roughness using 3D imaging.
In the journal ACS Applied Materials & Interfaces, researchers reported on a series of experiments in which they used an imaging tool – X-ray micro-computed tomography – to take 3D images of the surface of fabric in order to calculate the surface geometry, and measure the impact on friction. Their method can quantify skin-textile interface at a microscale without destroying the fabric.
“We need ways to definitively measure friction to help the textile industry tune fabrics to be suitable for specific applications,” said the study’s corresponding author Kavita Mathur, associate professor of textile and apparel, technology and management at NC State. “We have textiles for apparel, for athletes, that are worn by patients, and that go into furnishings. Friction can be anywhere – not just against the skin. Ultimately, we envision using this method to ensure fabrics are not too abrasive for their end-uses, whether they are destined to end up on a hospital bed where irritation can lead to bed sores, or on an athlete or into furnishings.”
The Abstract sat down with Mathur to understand how 3D images can be used to measure friction:
The Abstract: Why do you need to develop a new way to measure fabric friction?
Mathur: The textile industry currently uses tests that require an instrument, specifically a metal probe, that rubs back and forth against a small piece of fabric to give an indication of how rough or smooth the fabric is at the micron level. The metal probe represents neither our skin properties nor the actual interaction.
My graduate student, Ruksana Baby, is working on a friction test method capable of mimicking the human skin response to fabric at varying conditions. This will allow us to investigate skin-textile interactions for diverse applications like sports apparel, health care and medical textiles, military apparel, firefighter’s protective clothing and more.
TA: How did you take the images of fabric?
Mathur: We used a computing device – a new instrument at our labs in the Analytical Instrumentation Facility – to take an image of a cross-section of the length and depth of the fabric. So we know exactly, layer by layer, how the fabric was composed. It’s non-destructive in terms of getting inside the fabric. This tells us the geometry of the fabric from the fiber level to the fabric level.
Then we sandwich the fabric between an artificial skin simulant at a certain pressure to press on all the fibers, and that gives us what the true contact area is on the surface. Then we take the image of that sandwich. The exerted pressure at the contact interface will change the fabric’s surface geometry, and that’s recorded by the instrument very precisely.
TA: How can you use an image to understand the friction of the fabric?
Mathur: Just by changing the fabric structure alone, we can change the frictional interaction with the skin. Why? Because different fabric surfaces create different interactions with our skin. Since we can’t see it with bare eyes, we used a CT scan to capture fabric images in a non-destructive way so we can see how the fabrics are contacting the skin, and investigate why the contact is different.
TA: What features of fabrics create its surface geometry?
Mathur: The selection of fibers and yarns, as well as the fabric structure, help tune the frictional property of textiles. For instance, you will see your cotton T-shirt feels different than your active wear, which is typically made from synthetic fibers.
In some applications, depending on the type of fiber used, there can be short fibers protruding from the fabric surface, known as fabric hairiness, which can lead to skin irritation. This instrument can tell us how much yarn hairiness there is when it starts to touch the camera.
Along with fibers, yarn and fabric structures also contribute to surface geometry and create different contact with the skin. In order to investigate these aspects, we are using the XRM-CT to capture the entire fabric dimensions, and quantify skin-fabric contact interface from the images, which will lead us to predict friction and abrasiveness of fabrics.
TA: In the study, you talked about how fabric is just one part of the equation for how comfortable fabric can feel – the other part is skin. How does your skin impact how abrasive fabric can feel?
Mathur: Skin properties definitely impact the feel of the fabrics. There are no two skin types that are exactly the same. That’s why we take fingerprints – because everyone has a unique identification. Everyone has a unique skin texture.
The other factors that also impact skin comfort are moisture content of the skin and temperature. For example, when the skin is moist, the fabric becomes stickier – it sticks to the skin and increases the friction. In terms of temperature, whether it’s hot or it’s cold, the way the body reacts to it is also different.
In our study, we accounted for different test conditions as well as the test environments. We would like to do a human study to confirm the findings from this research in a real setting at different humidity and pressure, and use surrogate skin to mimic healthy adult tissue and sweat conditions. What the industry is using right now is friction against a metal surface. What we need to know is: What is the friction against the skin?
Source: NC State News
The COVID-19 pandemic keeps hurting readymade garment (RMG) exports. Garment shipment, mainly woven products, are yet to fully mend because main export destinations in the EU and the USA are still under strict lockdowns due to the 2nd wave of the COVID-19.
Recent data by the Export Promotion Bureau (EPB) revealed this development. Between July and February, or the current fiscal year’s first 8 months, RMG shipment declined by 3.73 percent year-on-year to $21.03 billion.
During the 8 months, knitwear export earned $11.34 billion, registering a 4.06 percent growth.
However, the woven item shipment declined by 11.49 percent, earning $9.69 billion in the eight months.
Amid this gloom, knitwear shipment has been improving gradually thanks to growing demand from people staying at home for longer periods and shorter lead times. On the other hand, the woven garments sale did not improve as people have cut back on the use of formal wear.
Generally, the sale of woven garments grows concerning the frequency of people going to formal events and offices.
RMG industry insiders say Bangladesh has already become a major knitwear sourcing hub for international fashion brands and retailers courtesy of a short lead time.
Fazlul Hoque, Managing Director of Plummy Fashions said, “Shorter lead time is very important in fast fashion.”
Nearly 90 percent of knitwear raw materials are procured from the local markets. This is because local spinners and weavers have made strong backward linkage support for the garment industry, investing approximately US$10 billion in the primary textile sector.
Whereas, the woven segment is still reliant on the raw material imports, mainly from China, India, Turkey and Pakistan, as the investment in the backward industry did not happen to a comparable extent.
Hoque added, “So, the knitwear export has been increasing from Bangladesh even during the time of the pandemic.”
Rubana Huq, President of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) said, “The woven sector is clearly in a distressed situation.”
Huq said, “The growth of garment export in February was 5.71 percent in the negative, of which knitwear export registered a 5.78 percent positive growth and woven posted 15.47 percent negative,” further adding that, “Woven garment export growth has dropped for the 19th consecutive month due to a slowdown in demand in the time of lockdown in major markets.”
In the current backdrop of uncertain progress from COVID-19 and the effect on international business, the distressing situation may prevail for more months till demand at the retail end starts responding positively, Huq also said.
BGMEA President stressed that “The price fall issue is another major challenge the industry is facing due to recessed orders. An interim policy measure is required to support the industry to survive till the market shows silver linings.”
Other exporting shipments like leather and leather goods dropped 4.15% to $605.67 million, footwear (other than those of leather) 0.29% to $218.84 million, and raw jute 5.96 percent to $106.36 million in the eight months.
Yet, some sectors’ export earnings went positive. Including, jute and jute goods grew by 23.67 percent to $862.74 million, home textile grew by 38.92 percent to $730.82 million, leather footwear grew by 0.20 percent to $377.34 million.
Overall, the national export earnings declined 3.92% year-on-year to $3.19 billion in February because of a drop in RMG shipment as the lasting COVID-19 pandemic endures to upset the country’s key markets.
Source: Textile Today
Despite Covid-19-generated economic uncertainty, 71 per cent of Indian business leaders are optimistic about the economy’s rebound to higher growth in 2021, compared to the global average of 57 per cent for the world economic recovery, reveals the findings of Grant Thornton International Business Report. The bi-annual global survey gathers responses from nearly 5,000 business leaders in 29 economies including the G20.
While the report ranks India’s optimism the highest for growth in export in 2021, its increase in investment expectations is highest in new buildings, second-highest in plant & machinery and R&D and third-highest in technology, among the 29 surveyed countries.
There’s a stark juxtaposition in the export growth expectation levels of Indian businesses, which stands at 65 per cent, against the APAC region average of 30 per cent. In the Western part of the world, 46 per cent of leaders in North America foresee a surge in export, the European Union export growth expectation stands at 24 per cent.
Interestingly, 43 per cent of businesses in India claimed to grow their exports by more than 5 per cent in 2020. Vishesh C Chandiok, CEO, Grant Thornton Bharat, said, “The government’s consistent push for ‘Make in India’ and rising interest from companies and governments across the globe in meeting their sourcing requirements from India will pave the way for robust exports.
Relentless collaboration between the government and manufacturers and commitment to innovation will go a long way in improving exports. Development of an indigenous supply chain of PPEs within 60 days is one such success story.”
“In our research, increasing investment in infrastructure and reduction in tax and compliance costs have been highlighted as key pillars of recovery. Along with the Aatmanirbhar (self-reliance) announcements of 2020, Budget 2021 has provided the economy with a big push – India is at a seminal moment and we now need to sustain the economic momentum that we will see this year and throughout the rest of this decade,” he added.
The survey also highlights various measures the government can take to help India emerge as a cost-competitive alternative to attract companies looking to diversify their global manufacturing hubs and supply chains. About, 61 per cent of respondents cited ease of access to capital as the top enabler. While 59 per cent of respondents seek simplification of tax and labour laws, 55 per cent see logistics and infrastructure development as game-changers.
Siddhartha Nigam, National Managing Partner, Growth and India-US corridor leader, Grant Thornton Advisory Private Limited, said, “Despite being one of the hardest hit by the pandemic, business leaders’ expectations for growth in revenue and profitability in India has improved from the first half of 2020, as they innovate and embrace the post-pandemic scenario.
The announcements made in Budget 2021 will also give the country much-needed growth impetus. The government has stressed ‘self-reliance’ with a focus on building robust infrastructure and domestic trade through capital expenditure, to revive economic growth and achieve India’s aspiration to become a USD 5-trillion economy by 2026-27.”
Source: The Business Standard
Textile exporters have threatened that they will stage a nationwide protest if the government failed to arrange cotton yarn, which is direly needed to meet pending export orders.
They voiced fear that the shortage of raw material would prompt overseas buyers to cancel the export orders given to Pakistani enterprises and approach their regional counterparts.
At a press conference on Tuesday, Council of Textile Associations Chairman Zubair Motiwala said that the value-added textile sector had been calling on the government for the past five months to deal with the shortage of cotton yarn, but no action was taken.
“The inconsiderate response is tantamount to lack of priority and non-seriousness towards value-added textile exports,” he said.
“This segment contributes around 62% to total exports, provides 42% of urban employment, particularly to the female workforce, earns the highest foreign exchange and supports approximately 40 allied industries.”
He warned the government of dire consequences if the raw material deficit persisted and appealed to the authorities to permit duty-free import of cotton yarn besides imposing a ban on its export to save the export-oriented industries and employment.
“It is government’s responsibility to decide whether it wants to enhance exports or trigger large-scale shutdown of export industries,” remarked Motiwala.
“A few months ago, the government approved dutyfree import of wheat and sugar in view of the shortage of the two commodities but it is ignoring the looming cotton yarn crisis, which is deplorable,” he said.
Motiwala pointed out that the scarcity of cotton yarn would translate into a decline in value-added textile exports. Highlighting that the drop in cotton crop yield was a major factor behind the yarn shortage, he said that the demand for cotton yarn had risen because the exporters had worked hard to win a large number of export orders.
He said Pakistan was able to achieve a significant jump in textile exports over the past six months because the businessmen had got a large number of orders from different countries.
“Whenever the value-added textile sector realises its full potential, an anti-export move emerges and all efforts of the businessmen go in vain,” he remarked.
Previously, the disconnection of gas supply to the captive power plants of export-oriented industries damaged the image of Pakistan’s exporters in the eyes of foreign buyers, he pointed out. “Now, the delay in approving duty-free import of cotton yarn will push export industries to the brink of disaster.”
Source: The Express Tribune
Germany on Wednesday took a step towards forcing companies to take responsibility for any labour or environmental abuses in their global supply chain, with a new law that allows for fines worth millions of euros.
The law was spurred on by a deadly fire in a textile factory in Pakistan and a devastating dam collapse at a Brazilian iron ore mine that killed more than 250 people -- both of which had links to German companies.
In a bid to prevent repeats of such workplace disasters, Chancellor Angela Merkel's cabinet agreed on the new rule which provides for companies with annual revenues of 400 million euros ($484 million) or more to be fined up to two percent of that amount if their contractors abroad are found to breach human rights or environmental rules.
Companies could also be excluded from public procurement processes in case of violations, the government agreed, at a time when allegations are also ratcheting up over Uighur forced labour in China.
"This law protects workers from exploitation across sprawling supply chains and protects human rights across the world," Finance Minister Olaf Scholz said on Wednesday. In future, it will be clear that 'Made in Germany' also means respect for human rights," he added.
Compromise
The so-called Lieferkettengesetz -- meaning "supply chain law" -- obliges companies to track workers' rights and environmental standards, not just in their own structures but also at their sub-contractors or suppliers at home and abroad. Companies will have to verify possible standards violations in their supply chain and take corrective measures.
"If you make profits globally, you should also take responsibility for global human rights," said Labour Minister Hubertus Heil on Wednesday.
Though businesses will not be made systematically liable for any shortcomings, NGOs and trade unions will be able to bring lawsuits against German companies on behalf of foreign workers. This would give workers "in Bangladesh or the Congo a fair chance to defend their rights", said Heil.
Germany’s economy ministry will also establish a structure to carry out checks and impose fines if necessary. The catalogue of fines agreed by cabinet on Wednesday includes penalties ranging from tens of thousands to millions of euros.
A hard-fought compromise between conservatives and social democrats of Germany's ruling coalition, the law still must be approved by parliament later this year. It will at first apply only to Germany's largest companies with over 3,000 employees, before being expanded to include those with 1,000 employees from 2024.
'Weaknesses'
The development and labour ministries initially wanted the law to also target smaller companies, but backed down in the face of strong opposition from the economy ministry and industry voices.
A similar French law adopted in 2017 covers only companies with more than 5,000 employees.
German environmental and human rights groups, who have long campaigned for the law, accused Merkel's government of " watering down" the initial proposal. The platform, Lieferkettengesetz.de, which collected over 200,000 signatures while petitioning for the law last year, said Monday that the draft law had "massive weaknesses" and "needed to be improved".
But industry lobbyists have called for less stringent rules.
"A national law will not do justice to the aim of strengthening human rights," said the Chemical Industry Association (VCI), calling instead for a "European initiative".
Chemical giant BASF and carmaker Volkswagen are among Germany's biggest companies which have production plants in Xinjiang province, where China is accused of serious violations against Uighurs.
Source: The Times of India
Walmart plans to invest $350 billion over the next decade in products made, grown, or assembled in the US to strengthen domestic manufacturing.
"More businesses are choosing to establish their manufacturing operations in the United States, and the result is more jobs for Americans - a lot more jobs," Walmart's President and CEO John Furner said on Wednesday.
The company estimates that this investment will create 750,000 new jobs over the next 10 years. It will also avoid an estimated 100 million metric tons of CO2 emissions by sourcing products closer to customers, according to Walmart.
The investment will also support small businesses, diverse suppliers, and sellers who are based in the US, Furner said.
Walmart will focus on six product categories: plastics, textiles, small electrical appliances, food processing, pharmaceutical, and medical supplies, according to Furner.
US manufacturing, which has contracted over the past two decades, swiftly bounced back after COVID-19 froze the economy early last year. Manufacturing grew at the fastest pace in three years with the industry showing improvement in February despite supply shortage and increased material costs stemming from the coronavirus pandemic, according to the Institute for Supply Management's purchasing manager's index for the manufacturing sector.
Over 85% of Walmart's customers said that it's important for them that the retailer offers products made or assembled in the US, according to a survey conducted by Walmart's Global Customer Insights & Analytics team, Furner said.
The retailer is also launching American Lighthouses, a collaborative effort that will gather key stakeholders including suppliers and manufacturers to identify and overcome obstacles to US production. Walmart's efforts to support US manufacturing dates back to 2013 when the retailer said would invest $250 billion in American-made products by 2023.
Separately, the giant retailer told Reuters on Tuesday that it will raise hourly wages to at least $15 per hour for Walmart workers located at the East and West coasts. Last week, the company said that on March 13 it will start paying 425,000 frontline workers an hourly wage ranging between $13 and $19 an hour.
Source: Businessinsider News
The Furniture Industry Research Association has published a guide which takes a view of what is (and what could be) on the horizon for the furniture sector in terms of alternative materials, and the pressures from specific consumer groups which might accelerate their adoption.
Throughout the 20-page guide – Horizon Scanning - New Hardline and Softline Materials – author John Hubbard, technical consultant at FIRA International (the service provider to the Furniture Industry Research Association) considers the diversification the industry may need to take in terms of alternative materials, either driven by environmental concerns, consumer preferences or regulation changes.
The guide addresses issues such as alternatives to leather and wood, bioplastics and alternatives to synthetic textiles.
“During the 20th century, furniture manufacture and demand was revolutionised by the introduction of mechanised methods of manufacture and the availability of new materials such as foams and synthetic textiles," says John. "Now we see a shift to a greater focus on sustainability and circular economy, alongside consumer groups having a stronger voice in demanding choice to meet their values, all amplified by social media. In addition there is no doubt that the use of chemicals, not just in furniture, is coming under greater scrutiny.
“It’s imperative therefore that the industry continue to look to alternatives to key materials such as leather, wood and textiles. Fortunately we can look to other sectors of industry who have been investigating and adopting alternative materials – for example, aerospace, automotive, marine or outdoor pursuits. It’s highly likely that some of these materials could be suitable for use within the furnishings sector and may provide solutions to the ever-increasing challenges on chemical use and/or sustainability.
“Alongside provoking thought, through this guide I hope to steer members through the myriad of alternative options, looking at the pros and cons of new hardline and softline materials crossing over to our sector, and how far in the future some of these will be readily be accessible.”
The guide is available to members of the research association here, and non-members can purchase a copy through the same link.
Source: Furniture News
Over the past few years, the conversation around the ethics of the textiles and fashion industries has undergone an enormous shift.
Thanks to consumer-driven demand, these days ethical clothing options are much more mainstream, with even some of the globe’s biggest fashion brands looking towards ethical production.
But when Rhianna Knight first launched Team Timbuktu, an activewear brand that uses recycled materials such as plastic water bottles and fishing nets to create clothing, that wasn’t the case.
Knight had spent three years before launching her brand working in the fashion industry, with a particular focus on sustainable design and production. But it was when she was hiking through South America, that she realised that there was a gap in the market for activewear that ticked the boxes of looking good and being sustainable.
“I was hiking through volcanoes, glaciers, and these incredible national parks, but I was really frustrated with the clothing that I was wearing. It didn’t reflect my sense of style or sustainability values,” Knight told Pro Bono News.
The average pair of sports leggings are made out of synthetic materials such as nylon, polyester, and spandex. While these materials are what make them light, stretchy, and workout-appropriate, they are also seriously harmful to the environment.
When washed, these materials shed hundreds of microplastics that find their way into river systems and oceans. There are estimated to be around 5.25 trillion macro and microplastic pieces in the ocean, killing around 100,000 marine mammals and turtles annually.
With that in mind, it was a no-brainer for Knight to launch a brand that avoided as much environmental harm as possible.
“The decision to make clothing that was ethical and sustainable was just common sense for me,” she said.
“We’re trying to encourage our community to get outdoors and enjoy the natural environment, and if we’re making a product that has a direct negative impact on the environment, It just doesn’t make sense.”
Team Timbuktu’s clothing is designed for people who love to get into nature (but aren’t about to climb Mount Everest), want to look good, and care about the environment.
Instead of using oil to create polyester, Team Timbuktu manufacturers sort, sterilise, and melt down old plastic bottles to create a new material that is sustainable, breathable, sweat-wicking, and durable.
Its activewear fabric is 75 per cent recycled, while the other 25 per cent is elastane to make the leggings stretchy.
When the label first launched, the waterproof jacket fabric was 75 per cent recycled, but that has now increased to 100 per cent, using approximately 31 bottles per jacket.
To date, the company has recycled over 75,000 bottles into fabric.
Transparent, from top to bottom
When Team Timbuktu first started out, it pledged 20 per cent of profits to a charity partner.
But Knight explained that the small size of the business meant that donating to charity actually came at a cost to the business.
“In the beginning, we weren’t profitable, and so we were donating anticipated profits which was a really great gesture, but at the same time, it just doesn’t work for financial viability,” she said.
Instead, Knight introduced an initiative to plant a tree for every order, which has to date seen 2,500 trees planted.
“It’s a long-term sustainable initiative that scales as the company scales. I’m really proud of what we’ve been able to achieve with the program,” she said.
She said that one of the key values she wanted to instill in Team Timbuktu was being transparent about the things that did work, didn’t work, and the things that it was trying to improve.
One of the ways she has done this is by making a sustainability report readily available on the Team Timbuktu website.
This report found, for instance, that the company still relies way too heavily on air freight, something that Knight has pledged to decrease in the coming year.
“I think it’s about admitting that we’re not perfect. We’re a tiny company, but we’re also doing our best with the resources that we have, which are actually quite significant compared to the standard of most companies,” she said.
“Because when a large multinational brand comes along and says they’re sustainable because they’ve launched a 10 piece eco-collection, that’s greenwashing rather than truth.”
She also said that she didn’t expect her customers to be experts in sustainable fashion, which is why all the manufacturing and sustainability information is listed on Team Timbuktu’s website.
“Most people wouldn’t know what fabrics are made from or what factories look like, because why would they have ever been in one,” Knight said.
“So I think it’s really important for brands to educate their customers about fabrics, fibers, factories, transparency, materials, sustainability, and ethics in a way that’s easily digestible and educational and easy to learn.”
These things take time
An artist’s collaboration and a new product category will be keeping Knight busy for most of this year, as well as slowly but surely chipping away at making the label more and more sustainable.
“Normally businesses have a marketing department, a product development department… sometimes it’s a lot when you’re trying to do 20 different jobs and balance it all out,” she said.
“We’d love to be carbon neutral, and we’d love to be B Corp certified, but all of these things come in time. This is what we can achieve with what we’ve got right now.”
Source: PRObono News Australia
Huntsman Textile Effects, a Singapore-based provider of high-quality dyes, chemicals and digital inks, and Sciessent, a provider of customised antimicrobial, odour control and water repellent solutions, have entered into a strategic partnership to bring revolutionary antimicrobial and odour-control solutions to textile mills and brands worldwide.
As consumers around the world begin paying more attention to health and hygiene, Huntsman Textile Effects and Sciessent will cooperate to help mills and brands deliver active wear, outerwear, home textiles and other products with long-lasting protection against microbial growth and odour. Huntsman Textile Effects will also become the exclusive distribution partner of Sciessent’s Agion Antimicrobial, Lava XL anti-odour solution, and dual-action Active XL.
“Both Huntsman Textile Effects and Sciessent share a deep commitment to innovation, environmental sustainability and customer service. As partners, our joint goal is to offer the highest level of protection for textiles so that they stay fresher for longer,” Rohit Aggarwal, president of Huntsman Textile Effects, said in a press release. “Huntsman Textile Effects now has one of the industry’s most complete end-to-end systems for high-performance protection effects, with a full range of innovative and sustainable protection and comfort technologies from pre-treatment to coloration and finishing.”
“Our presence in the global textile and apparel market has been rapidly expanding based on the strength of our solution set and reputation for delivering an exceptional customer experience,” Paul C Ford, Sciessent CEO said. “Through this partnership, we are both extending our reach to manufacturers and enhancing our offerings by coupling them with Huntsman Textile Effects’ broad range of innovative and sustainable protection technologies. It is a great opportunity for manufacturers to differentiate their products through the combined strength of our brands.”
Sciessent Agion Antimicrobial is the industry-leading antimicrobial solution. Designed with smart-release technology, it delivers long-lasting protection by releasing its active antimicrobial agents only when needed. It can be built-in or applied via padding, exhaust or package yarn to any textile alongside other functional finishes, dyes, inks and pre-treatments. Durable up to 100 home washes, Agion is also customisable to meet brands’ performance and cost goals. Agion Antimicrobial has been used on FDA-approved medical devices.
Sciessent Lava XL is a next-generation non-bioactive odour-control solution, ideal for sportwear and athleisure wear. While other odour-control technologies capture odours and release them during laundering, Lava XL’s triple action technology utilises zeolite minerals with a large surface area to capture, absorb and degrade odours as they pass through the fabric.
Sciessent Agion Active XL combines the advanced dual technologies of Agion Antimicrobial and Lava XL to deliver outstanding odour protection. The antimicrobial fights odour-causing bacteria on the garment, while the odour control solution captures odour generated by sweat on the skin. The result is that garments smell fresher for longer and sustain a high level of performance for more wears.
The Sciessent solutions are easily integrated into the finishing process and can be combined with a range of other finishes, including Huntsman Textile Effects’ durable water repellents and comfort systems to cost-effectively produce high-performance textile products that are safe and sustainable. Huntsman Textile Effects and Sciessent both champion environmentally responsible products that help the textile industry meet its regulatory obligations and the expectations of the world’s most exacting brands and consumers.
The Agion, Lava XL and Active XL products are all bluesign approved and listed on the Zero Discharge of Hazardous Chemicals (ZDHC) Foundation ZDHC Gateway, complying with ZDHC Level 3 requirements.
Source: Fibre2Fashion News
