The Synthetic & Rayon Textiles Export Promotion Council

MARKET WATCH 16TH APRIL 2021

NATIONAL

INTERNATIONAL

Cotton crop estimate increased to 360 lakh bales for 2020-21

The Cotton Association of India (CAI) has marginally increased its crop estimate to 360 lakh bales of 170 kg each from its previous estimate of 358.50 lakh bales in its March estimate for the season 2020-21.

The total cotton supply for the period of October 2020 to March 2021 is estimated at 459.26 lakh bales, which includes the arrivals of 326.76 lakh bales, imports of 7.50 lakh bales and the opening stock estimated at 125 lakh bales at the beginning of the season.

umption for the period between October 2020 and March 2021 at 165 lakh bales. Export shipments upto March 31, 2021, are estimated by the CAI at 43 lakh bales. Stock at the end of March 31, 2021, is estimated at 251.26 lakh, including 95 lakh bales with textile mills and the remaining 156.26 lakh bales with the Cotton Corporation of India (CCI), Maharashtra federation and others.

The CAI crop committee has estimated the total cotton supply till end of the cotton season 2020-21at 496 lakh bales. The total cotton supply consists of the opening stock of 125 lakh bales at the beginning of the season, crop for the season estimated at 360 lakh bales and the imports estimated by the CAI at 11 lakh bales.

The imports estimate for the previous cotton season 2019-20 was of 15.50 lakh bales .The domestic consumption estimated by the CAI has been retained at the pre-lockdown level of 330 lakh bales, and exports for the season have also been retained at 60 lakh bales.

The exports estimate for the previous cotton season 2019-20 was of 50 lakh bales. The carry-over stock at the end of the cotton season 2020-21 is estimated at 106 lakh bales as against 107.50 lakh bales.

Source: The Financial Express

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Extend MSME recast scheme: NBFCs to RBI

Non-bank lenders have approached the Reserve

Bank of India

 (RBI) and sought to extend the MSME recast scheme by more than a year, in light of the fresh surge in Covid cases. NBFCs have told the RBI that since the MSMEs have been unable to revive their business activities, they are in urgent need of financial support.

The RBI had allowed a one-time restructuring of standard MSME advances until December 2020.

“Considering the severe second wave of Covid-19, the MSMEs, as also the retail and wholesale trader industry have not been able to revive their economic activities and are in urgent need of support from the lenders, it will be helpful, if the RBI extends the recast scheme till at least March 31, 2022,” NBFC industry body FIDC said in a letter to RBI Governor Shaktikanta Das.

FIDC has also requested that the recast scheme be extended to all those MSME clients that had got payment relief under the scheme during the first Covid wave.

The non-bank lenders have also requested the regulator to classify bank liquidity support to NBFCs for on-lending to MSMEs as a priority sector on a perpetual basis. Currently, fresh loans to MSMEs have a PSL tag until September. The RBI has been continuing to extend the period for on-lending benefit by six months at the time of each review.

“Under the on-lending model, only fresh loans granted by NBFCs are allowed for PSL benefit, the existing unencumbered pools do not qualify for such classification benefit. We request the RBI to allow refinance by banks against existing unencumbered MSME pools originated by NBFCs,” the FIDC said.

“Over 90 days past due balances indicate higher overdue levels than in the retail sector, even with regulatory relief camouflage,” said Manish Jaiswal, MD, Magma Housing Finance. “While businesses had begun to rebound in Q4 of FY21, the second Covid wave and lockdowns seem to suggest that recovery can be a long drawn arduous process.”

Most MSMEs’ cash-flows are under deep stress with top line shrinkage of 30-40% in FY21. Industry estimates suggest that Covid-19 could push revenue growth for MSMEs to -17% to -21% in FY21.

Source: The Economic Times

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Exports rise record 60.29% to $34.45 billion in March

India's goods exports posted a record monthly growth of 60.29 per cent (year-on-year) to $ 34.45 billion pushed by sectors such as engineering goods, electronics, petroleum products, gems & jewellery and pharmaceuticals.

In the fiscal year April-March 2021, however, exports declined by 7.26 per cent to $290.63 billion compared to the previous fiscal as Covid-19 disruptions slowed down production and demand worldwide.

Imports during the month increased 53.74 per cent to $ 48.38 billion, with surges in items such as gold, machinery, chemicals, plastics and electronics, resulting in the trade deficit widening to $13.93 billion compared to $9.98 billion in the previous fiscal, per quick estimates released by the Commerce & Industry Ministry.

Total imports in April-March 2020-21 declined 18.02 per cent to $ 389.18 billion with trade deficit narrowing to $98.56 billion compared to $ 161.35 billion the previous fiscal.

 “The export performance in the fourth quarter has lifted up the overall export scenario of the country. During January – March 2021, export have grown by about 19 per cent, over the corresponding period of the previous year, $ 89.83 billion. The fourth quarter export performance was driven by non-oil, non-gold exports, which grew by nearly 25 per cent,” said Prahalathan Iyer, Chief General Manager, Research & Analysis, India Exim Bank.

The sharp rise in exports has been mainly on account of 28 out of 30 major product groups of exports showing either a very impressive triple digit growth or high double digit growth defying all the odds during these difficult times,” said S K Saraf, President, Fieo.

Fieo urged the government to address some of the key issues including announcement of the new Foreign Trade Policy soon after September, 2021, ensuring adequate availability of containers and releasing of the required funds for new incentive scheme RoDTEP (also the pending payments under MEIS), bringing about clarity on SEIS benefits, and continuing seamless refund of IGST.

Source: The Hindu Business Line

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Royal Enfield opens to partnering with gear and apparel manufacturers in view of expanding apparel business

Royal Enfield has been witnessing significant growth in its apparel business ever since it incepted in 2014 with a vast line-up of bike safety gear, casual wear and accessories.

Now, stepping ahead, the brand has introduced a customisation programme in its apparel business called –Make it Yours– which allows customers to personalise the products.

Puneet Sood, Head of Apparel Business, Royal Enfield told AutoCar India that the company intends to keep the growth going after the momentum has been significant off late. The brand has seen various tie-ups with companies such as Levi’s and Knox.

One of the key strategies Royal Enfield is following to expand its apparel business is formation of strategic alliances with dedicated gear manufacturers. “Before the Knox agreement, Royal Enfield offered a riding jacket-pant set co-developed with Dutch riding gear manufacturer, Rev’it. The company also uses D3O (another British brand) armour in some of its jackets, and their current helmet line up is manufactured by Indian companies like Steelbird, Vega and Studds,” reports AutoCar India.

With the growing apparel business, the focus of Royal Enfield on manufacturing and sourcing is also increasing. The brand is outsourcing its apparel production, while the designs are all in-house.

Puneet further informed that the company is open to more partnerships with gear and apparel manufacturers, both based in India and in overseas markets. Further expansion is projected to be in the women’s segment and the Make It Yours customisation programme.

Source: Apparel Online

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Indian textile manufacturer RSWM recognised for highest export in 2020

RSWM Limited, the flagship company of the $1.2 billion LNJ Bhilwara Group and a leading manufacturer of textiles in India, has been recognised for achieving the highest export turnover in 2020 by the ministry of industries & CSR, government of the Indian state of Rajasthan. RSWM Limited is listed on both Indian stock exchanges—the NSE and the BSE.

“I would like to congratulate the team of RSWM for achieving the highest export in textiles. Our continuous efforts of achieving excellence have been recognised by the Government of Rajasthan and we would like to thank them for the same. This reaffirms our resolve to the growth of the company, its stakeholders, employees and our commitment not only towards the state of Rajasthan but also the economy of the country,” said RSWM chairman & managing director Riju Jhunjhunwala.

RSWM Limited is one of the largest manufacturers and exporters of synthetic and blended spun yarns from India and exports to 78 countries. The company has 10 state-of-the-art manufacturing plants, 4,41,000 spindles, 10,000 (MT/annum) cotton fibre dyeing capacity, 4,000 (MT/annum) yarn dyeing capacity and denim manufacturing capacity of 25 million metres annually.

Source: Fibre2Fashion News

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ML Dyeing investing Tk63cr to set up a spinning unit

ML Dyeing Limited, a concern of Far Group, will set up a factory in Gazipur to start its spinning business. With a production capacity of 16,500 kg yarn per day, ML Dyeing will invest Tk62.58 crore for the business expansion.

At present, ML Dyeing is engaged in the dyeing business of yarns for export-oriented sweater companies.

“We have already imported machinery for the new plant. Despite the countrywide lockdown, we hope that the new plant will start operations in May this year,” said AKM Atiqur Rahman, Company Secretary of ML Dyeing.

The company sources are hopeful that its annual turnover will be Tk78 crore and net profit Tk12 crore.

Despite the COVID-19 pandemic shock, the net profit of the company enlarged by 2% in the 2019-20 fiscal year.

While its yearly revenue declined by 3% to Tk238 crore for the last fiscal year, compared to the previous year. In FY20, the company dyed 1.8 crore pounds of yarns.

Source: Textile Today

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2nd Covid wave hits Gujarat textile industry

The second wave of Covid-19 is taking its toll on Gujarat’s textile industry which saw at least 25% decline in fabric production in the past 15-20 days.

Since the beginning of April, production of fabric has gone down in the state from around 5.50 crore metres to almost 4 crore metres per day. Confirming the development, president of Federation of Gujarat Weavers’ Association (FOGWA) Ashok Jirawala says that in Surat alone, production of grey fabric has gone down by 1 crore meters from 4.5 crore meter to less than 3.5 crore meters per day.

“Demand from textile traders has gone down drastically. If the situation doesn’t improve in next fortnight period, production of fabric would further plummet to as low as 50%,”said Jirawala.

Source: The Financial Express

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Webinar to boost India, Taiwan textile ties

In a bid to boost ties between Indian and Taiwanese textile companies, Bureau of Foreign Trade - BOFT, Taiwan (ROC) and Taiwan External Trade Development Council, TAITRA are jointly organising a webinar on “Textile Manufacturing Solution” on April 29.

Experts from Taiwan will share advantages of smart manufacturing technologies and its impacts in the Indian textile industry. The event will also brainstorm on technical know-how, best practices and business strategies. The webinar will be live-streamed on https://www.youtube.com/watch?v=3zmW4OC2HoI. 

The key speakers are Fred Liang - Logic Art Automation Co. Ltd; Mason Chao - Pailung Machinery Mill Co. Ltd; CL Chang, ACME Machinery Industry Co. Ltd and Alfie Lin - Hsing Cheng Machinery Ind. Co. Ltd. Registre free on  https://rb.gy/xkdyuk.

Source: The Indian Express

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INTERNATIONAL

Texon launches a new jacquard weaving technology ‘ProWeave’

Texon has introduced a new patented jacquard weaving technology named ProWeave, which makes it possible to seamlessly integrate functional and design weaving into a single sheet of material.

ProWeave opens up infinite new design possibilities in fabrics for the footwear, apparel, fashion and luxury goods industries enabling the production of continuous woven substrates with the zonal features product designers want, exactly where they want them, as says Texon.

Creating different elasticity, tenacity and abrasion zones within the same weave, ProWeave aims at helping the world’s biggest brands bring new creative concepts to life.

The technology blends diverse yarn thicknesses, weights and fabric references together – creating intricately designed fabrics with distinctive gradient, rib, waffle, colour, stretch, transparency and 3D effects.

According to Texon, ProWeave is set to be popular in the fast-paced sports and outdoor sector where the trend for woven footwear has been growing quickly, and where demand for innovative materials for garment manufacturing is continuous.

Texon also sees big opportunities for ProWeave in the production of top luxury and premium branded footwear and clothing.

Paul Jackson, Business Acceleration Leader for ProWeave at Texon, commented, “Combining Texon’s know-how in branded footwear, with our Italian division’s expertise in high performance occupational and safety woven fabrics, this exciting technology can help manufacturers differentiate their designs and unlock significant creative advantage,” adding, “Using ProWeave, we can help manufacturers pinpoint the physical characteristics, functional zones and visual patterns they want to achieve on a performance fabric, and then make their vision a reality. ProWeave is radically different to anything else on the market and we’ve been getting really enthusiastic feedback from customers around the world. There is a real curiosity about a technology that can free designers from conventional fabric restraints and help them unleash their imagination.”

On sustainability front, as per Texon, ProWeave fits true to its aim of zero waste business that’s to be achieved by 2025. Using a single efficient process to create woven uppers with localised features means less energy consumption for manufacturers and recycled yarns can also be incorporated to build recyclable structures for circular projects.

It’s worth noting here that ProWeave is produced at Texon’s plant in Prato, Italy and at the company’s newest manufacturing centre in Vietnam, which opened in mid-2020.

Source: Apparel Online

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LAB 101’s campaign for ‘Revival of Denim’

In November 2018, Mapo-Gu, in Seoul, Korea, launched a denim brand called ‘Lab 101’ who designs innovative and exceptional denim stores. Just as some food and essential stores or essential hospitals are open 24 hours a day, the store is designed to highlight the importance of denim and fashion, where the store will be available 24 hours a day and night.

In addition to being open, it has a system of eating and drinking and takes rest for customers. People loved the unique and trendy design, the denim brand ‘LAB101’ has opened its new flagship store. It is an unmanned 24-hour store that is rarely seen in the local fashion industry.

The theme of the entire space is being considered as ‘A Renaissance of Denim,’ and similarly, some more basic items have been added to the store. For example, shiny metal has been added inside the store, and a blue fixture can also be noticed in detail when rotated around it.

You can easily separate it from many fashion shops as the large windows, and manque en displays of customers here will attract a lot.  Lab 101 has only one outer gate, which is responsible for a very little understanding of what is inside it.

“Lab101 does not display products in an open space like other ordinary stores,” said the design lab in a loud voice to highlight the importance of the denim & fashion industry

The company’s director, Zeng Heung-wook, said about it “In the case of denim, there are many consumers who try to take products alone & offline. Some others try to wear clothes fitted to the body, and all the benefits are here.”

It can also be an example regarding its payment & security system. The unmanned payment system is installed throughout the store. By tagging the product, when you want to purchase on the payment device, you can decide whether to pick up the item from the size selection and inventory information, pick up the item at the site, or receive it by courier.

Theft and security issues, one of the anxiety factors of unmanned stores, have also been thoroughly prepared. Like manned stores, theft prevention tag was attached to the CCTV and clothing in the store, as well as allowing customers to enter the store only by tagging a credit or debit card.

Source: Textile Today

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UK's FET installs melt spinning system for yarn in Indonesia

Fibre Extrusion Technology Limited (FET), a UK-based leading supplier of state-of-the-art process technology and equipment for the man-made yarns and fibre extrusion industry, has installed a new FET-100 Series Laboratory Melt Spinning System for continuous filament yarn applications at the Center for Textile, Balai Besar Tekstils in Bandung, Indonesia.

The Balai Besar Tekstils has the task of carrying out research, development, cooperation, testing, certification and competency development of the textile sector, under the aegis of the ministry of industry (Kementerian Perindustrian).

The FET-100 system will play a vital role in driving technological innovation in the Indonesian textile industry. Fibre manufacturers in the country now have access to advanced melt spinning facilities for developing and testing their own novel fibres for global applications. "This laboratory melt spinning system is multi-polymer capable and can produce both mono and bi-component formats," FET said on its website.

FET representatives and the innovation agency BSP participated in a major ceremony last month to commemorate the installation of the machine. Indonesia's minister of industry Agus Gumiwang Kartasasmita attended the event.

The ministry of industry has a stated objective that Indonesia becomes a “Resilient Industrial Country” – strong, competitive and based on innovation and technology.

Source: Fibre2Fashion News

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Sri Lanka bans fabric import, can impact India negatively!

It can be another setback for Indian textile companies, especially for those who are exporting fabric to Sri Lanka.

Recently Dayasiri Jayasekara, Minister of State for Batik, Textile and Handloom Products, Sri Lanka announced that Sri Lanka has banned the fabric import.

The step has been taken to protect the interests of domestic fabric manufacturing of Sri Lanka – especially local handloom and Batik.

As per the Indian Government data, in 2019-2020, India exported knitted fabric (HS Code 60) worth US $ 198.54 million to Sri Lanka, which was 14 per cent more compared to 2018-2019.

The Minister said that a large number of Batik and textile showrooms are being set up in every city.

Further, the Minister added that Sri Lanka has stopped importing Batik paint and all textile fabrics and now has a great opportunity to bring back the largest range of handloom textile and Batik products manufactured in Sri Lanka.

Indian textile companies, having good export to Sri Lanka, are waiting for the detailed notification in this regard as the same has been not issued yet,though it has been approved by Sri Lankan Parliament.

“We are concerned about this ban and once we study the notification, we will see what can be done,” said a GM of a Ludhiana-based top textile company, which exports a good amount of fabric to Sri Lanka.

Source: Apparel Online

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US textiles & apparel imports down 6.98% in Jan-Feb 2021

The import of textiles and apparel by the United States decreased by 6.98 per cent to $15.580 billion in the first two months of 2021, compared to imports valued at $16.749 billion in January-February 2020. With 28.54 per cent share, China was the largest supplier of textiles and clothing to the US during the two-month period, followed by Vietnam with 14.83 per cent share.

Apparel constituted the bulk of the textiles and garments imports made by the US during the initial two months of this year, and were valued at $10.914 billion, while non-apparel imports accounted for the remaining $4.666 billion, according to the latest Major Shippers Report, released by the US department of commerce.

Segment-wise, among the top ten apparel suppliers to the US, imports from Pakistan showed growth of 13.45 per cent year-on-year. On the other hand, imports from Indonesia, Jordan and India registered a sharp decline of 29.64 per cent, 23.39 per cent and 21.89 per cent respectively compared to the same period of the previous year.

In the non-apparel category, among the top ten suppliers, imports from Turkey, India and Pakistan shot up by 48 per cent, 20.48 per cent and 19.98 per cent, respectively. On the other hand, imports from South Korea were marginally down by 0.89 per cent to $118.362 million.

Of the total US textile and apparel imports of $15.58 billion during the period under review, cotton products were worth $6.951 billion, while man-made fibre products accounted for $7.994 billion, followed by $326.278 million of wool products and $308.562 million of products from silk and vegetable fibres.

In 2020, the US textile and apparel imports had decreased sharply, mainly on account of the disruption caused due to COVID-19 pandemic, to $89.602 billion compared to imports of $111.038 billion in 2019.

Source: Fibre2Fashion News

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Good News! Indian exporters witnessing more enquiries from USA

Amidst several negatives in Indian apparel export industry, there is a positive development also. Enquiries from US market are increasing,which can, importantly,get converted into more orders too.

Garment exporters and leading buying houses have accepted that in last one and half month there have been 20 to 25 per cent more enquiries from their US-based clients.

These high enquiries hold significance considering India’s apparel export to USA in Feb 2021 went downwards. Indian apparel export to USA was down by 21 per cent in value, while it was 15 per cent down in volume in Feb.’ 21 compared to Feb.’20.

“US-based buyers’ sentiments are very good.Our company has seen 20-25 per cent increase in the enquiries in last one month. We are hopeful that order will also be more and India will have good business after the negative experience of 2020,” shared a top level professional of Gurugram-based leading buying house on the request of not disclosing his identity.

He further added that higher enquiries are more from big brands and retailers as medium and small brands hesitate to take any risk.

Few other apparel exporters catering to the US market also agreed on these observations and said that they are hopeful that India’s apparel export to US will grow in next few months.

With regard to apparel sourcing, the US is supporting India and Vietnam, so that it can reduce its dependency on China. From trade war to all the recent developments in China like China’s Uyghur ‘genocide’, and the recent China’ retail nationalism on the issue of Xinjiang cotton are pushing US clothing giants to reduce sourcing from China.

As far as positive consumer sentiments in US are concerned, there are few strong reasons for the same. Despite the US having maximum cases of COVID-19, compared to any other country in the world, there has been no lockdown – not to mention the fast pace at which vaccination drive is going on in the country; also the US Government has overall been very supportive.

Regarding yarn price or allied challenges in India, US-based buyers are well aware that yarn issue more or less exists with all apparel manufacturing countries be it India, Bangladesh or China.

Source: Apparel Online

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US apparel marketer Carter's launches kids' clothing recycling

Carter’s, the largest branded marketer in North America of apparel exclusively for babies and young children, has announced the launch of Carter’s recycling programme, KidCycle. According to company, this is a first-of-its kind programme to recycle baby and children’s clothing nationwide through international recycling leader, TerraCycle.

Now, as little ones outgrow their clothing and parents update kids’ wardrobes, items that would otherwise be discarded can be mailed to TerraCycle and recycled. Carter’s aims to make recycling well-loved, lived-in clothing for babies and children both simple and rewarding, with the opportunity to receive Rewarding Moments loyalty points from Carter’s.

“At Carter’s, we are committed to doing our part to preserve the environment for today’s generation of children as well as future generations, which is why we are excited to invite parents to join our sustainability journey,” Antonio Robinson, SVP corporate social responsibility at Carter’s, said in a press release. “KidCycle is an important step toward circularity, which will help reduce the volume of children’s clothing going to landfills and find additional uses for the recycled materials.”

“Children’s clothing, especially baby clothes, hold so many memories for parents. It can be difficult to let go of such sentimental items,” Tom Szaky, TerraCycle CEO and founder said. “Through their recycling programme, Carter’s is providing parents with a sustainable option to part with their children’s clothes that can no longer be passed on or donated.”

All spring long, the programme will accept any brand’s baby and children’s clothing excluding shoes and accessories. Once collected, the clothing is separated by fabric type, shredded, and recycled into materials for another use, such as home insulation and stuffing in workout equipment and furniture.

Source: Fibre2Fashion News

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