Textile units in neighbouring Bangladesh, Sri Lanka and even China are facing challenges of slowing global demand, energy crisis. The upcoming festive season and exports opportunities emerging from the crisis-ridden textile sectors in neighbouring countries may help the textile industry in India battle the declining global demand. Chintan Parikh, chairman of Ahmedabad-based Ashima Group, said, “Textile industries of Bangladesh and Sri Lanka are in complete doldrums both on account of political instability and their complete reliance on exports for survival. This is a great opportunity for the Indian textile industry.” According to him, textile units in neighbouring Bangladesh, Sri Lanka and even China are facing challenges of slowing global demand, energy crisis, political instability and new policy of China plus one strategy adopted by the US and Western European nations. In this situation, textile players in India foresee huge opportunities on the exports front too. “The USA and Western European nations are exploring alternatives post the Covid19 outbreak in order to reduce their exposure on Chinese exports. Sri Lanka and Bangladesh garment industries, too, are in deep trouble. Fortunately the Indian textile industry will be able to tide over the problem of slowing global demand due to a huge domestic buying in the coming festive season,” Parikh says. He, however, strikes a cautionary note on rising costs of energy and inputs. “Bangladesh textile industry enjoys the advantage of zero duty in the Europe and US market while Indian exporters have to pay up to 14% duty. The government of India needs to raise this issue with these nations,” he added. Chintan Thaker, chairman, Assocham Gujarat, and also group head, Corporate Affairs, Welspun group, also feels the upcoming festive season would definitely help Indian textile industry to overcome the challenge of muted global demand by the end of the third quarter of current financial year. “As far as intermediate and low-cost textile products are concerned, there would be a huge domestic demand. However, high-end textile product makers will have to wait for improvement in global demand,” he says. Thaker, however, also urges the government to “stand by the side of exporters in this unprecedented phase when, for the first time in the history of the textile industry, we are witnessing peak cotton, power and container prices simultaneously. All these factors are directly connected with the exports of high-end textile products ranging from fabrics, garments, bedsheets and towels. Hopefully, things will start improving once fresh arrival of cotton starts in October and prices of the important input for textile industry would become affordable.”
Source: Financial Express
It said that non-examination of suspicious business activities and short accounting of stocks in 33 significant issues involved tax effect of ₹37,909.38 crore between FY13 and FY18. It said that non-examination of suspicious business activities and short accounting of stocks in 33 significant issues involved tax effect of ₹37,909.38 crore between FY13 and FY18. The Comptroller & Auditor General of India has asked the Central Board of Direct Taxes to consider specifying a time limit for remittance of export proceeds by special economic zone (SEZ) units for claiming deduction under Section 10AA of the Income Tax Act. It said that non-examination of suspicious business activities and short accounting of stocks in 33 significant issues involved tax effect of ₹37,909.38 crore between FY13 and FY18. "Such irregularities had the underlying risk of tax evasion that require further probing and detailed examination," CAG said in its performance audit on 'Assessment of Assessees of Gems and Jewellery Sector'. It also said standard operating procedure and standard guidelines entailing checks be exercised during scrutiny assessment of gems and jewellery to curb the "unscrupulous trade practices resorted by diamond traders/manufacturers".
Source: Economic Times
In the past, the revenue department often flagged losses of potential revenue due to support being extended to SEZs. The commerce ministry will flag the merits of its proposal to extend direct tax concession to units willing to set up shop in the special economic zones (SEZs) under a new regime in inter-ministerial discussions, an official source told FE. The ministry believes that such a move would attract fresh investments and the net gains would outweigh any potential losses, amid fears that the finance ministry could oppose such a plan on ground of loss of potential revenue. The commerce ministry’s new draft Bill on the Development of Enterprise and Services Hub (DESH), which will replace the Special Economic Zone (SEZ) Act, proposes to freeze the corporation tax at a concessional rate of 15% for all greenfield and certain brownfield units in such “development hubs” until 2032. “We haven’t yet received the finance ministry’s comments on the draft Bill. Once we receive them, we will discuss any issue that they may raise,” said an official. Comments received from other departments are mostly related to the operational part of the Bill, which will be addressed, he said. In the past, the revenue department often flagged losses of potential revenue due to support being extended to SEZs. However, commerce ministry officials believe, with most of the support to such units having been withdrawn, it would be difficult to woo investors into these hubs without some fiscal incentives. In fact, the new Bill was necessitated to revive interests in these industrial clusters that lost their charm after the government set a sunset date to start operations (June 30, 2020) to be eligible for a phased income-tax holiday for 15 years. Moreover, India lost a case at the World Trade Organization filed by the US that had claimed New Delhi was offering illegal export subsidies through these SEZs. Vikram Doshi, partner at PwC, said, “If we leave aside a 15% minimum alternate tax (MAT) applicable to SEZ units now, there are four corporation tax rates—15% for new manufacturing companies (those registered on or after October 1, 2019, and starting manufacturing on or before March 31, 2024); 22% for other companies that are not claiming any income tax holiday or benefits; 25% for those companies that are claiming benefits, subject to an annual turnover of less than Rs 400 crore; and 30% for companies that are claiming benefits and whose turnovers exceed Rs 400 crore.” So, if a new investor wants to set up a technology (services) unit in an SEZ, it has to pay a minimum tax of 22% (15% rate is only for manufacturing firms); it will work out to 25.17% with surcharge and cess. “Compared to that if the new units are subject to a base tax rate of 15% (17.16% with surcharge and cess) up to 2032, it’s good for them,” Doshi added.
Source: Financial Express
Stressing the need for transparency and ease of doing business, Piyush Goyal assured traders and entrepreneurs that the Government will fully support traders who raise their voices against harassment by any authority. Union Minister for Commerce and Industry, Consumer Affairs, Food and Public Distribution and Textiles, PiyushGoyal today said that the world now sees India as an engine of economic growth. He was addressing the gathering at the VyapariUdyamiSammelan in New Delhi today. Stressing that India enjoyed the confidence of the world today, Shri Goyal said that developed countries very keen to sign trade deals with India now. He added that before 2014, the Indian economy was considered to be fragile and investors had their doubts bout doing business with India. Stressing the need for transparency and ease of doing business, the Minister assured traders and entrepreneurs that the Government will fully support traders who raise their voices against harassment by any authority. He called upon traders to work with the Government to reduce the compliance burden of people and businesses, but asked that they strictly follow ethical trade practices. Unnecessary, cumbersome and counter-productive laws and regulations must be uprooted to improve the ease of doing business, he added. He asked traders to give priority to the quality of goods and services that India offered. He also underscored the need to encourage youngsters to come forward and lend a youthful energy to India’s growth story with new ideas. The clarion call of ‘vocal for local’ given by the Prime Minister, Shri Narendra Modi must be taken up by the youth of the nation, the Minister said. He added that we must also encourage more and more women to become traders and entrepreneurs.
Source: Times Now News
The ripples of cotton prices skyrocketing to Rs 1.1 lakh per candy (365kg) are being felt across the entire textile value chain. Among the worst hit are the spinning mills, whose margins have eroded to such an extent that some have been forced to permanently shut shop. Since Diwali of 2021, at least three spinning mills i n d i f f e re n t parts of Gujarat have seen a change in ownership. Four more situated in Saurashtra are up for sale. As demand remains weak in the domestic as well as export markets, yarn prices have not risen in line with cotton prices, leading to a rise in input costs of spinning units. Yarn makers are witnessing losses to the tune of Rs 30-50 per kg of yarn manufactured, depending on the quality. UNITS UP FOR SALE: Dhrangadhra-based Omax Cotspin, which already has an installed capacity of around 70,000 spindles, has recently acquired a spinning unit in Rajula region of Amreli district. Jayesh Patel, director, Omax Cotspin, said, “The industry has been under pressure due to unprecedented cotton price hikes, triggered by falling demand. Spinning mills had high profit margins in 2021, but there were inherent challenges prior to that rally in prices too. The owner of a Rajula-based spinning unit wanted to exit the business completely. We got a good deal. The acquisition will help us almost double our capacity as the unit has an installed capacity of 51,000 spindles.” Similarly, Jasdanbased MM Group has acquired two spinning mills in the past one year. MM Group director, Natvarlal Navadiya, said, “We have recently ex- p a n d e d b y a d d i n g 5 3 , 0 0 0 more spind l e s a n d acquiring mid-size units. If the situation does not improve soon, we expect more units to be up for sale.” The director of a Saurashtra-based spinning mill, which is up for sale, on condition of anonymity, said, “We were unable to meet input costs due to rising cotton prices. Over the past four months, we have been reducing capacity utilization and incurring steep losses. We cannot pass the cost increase to customers due to the uncertainty of the situation and lack of demand. Therefore, we have decided to sell off this unit and diversify our business.” A continuous weak trend has affected spinning mills. Industry sources claim that mills under pressure offer a r o u n d 15% reduced valuations.
Source: Times of India
The India-UK trade is dominated by services, which make up about 70% of the overall annual commerce. Commerce and industry minister Piyush Goyal on Tuesday said negotiations between India and the UK for a free trade agreement (FTA) is moving at a fast pace, allaying concerns that the evolving political situation in Britain may slow down the pace of talks. India and the UK launched formal negotiations in January for the FTA, which could ultimately cover more than 90% of tariff lines. They have set the Diwali (October 24) deadline for signing the agreement. Speaking at the Vyapari Udyami Sammelan here, Goyal said India signed a trade pact with the UAE in a “record time” of less than three months and “now our talks with the UK is moving at a faster pace”. Speculations about a delay in hammering out the crucial trade deal intensified in recent weeks due to political uncertainties in the UK after Boris Johnson stepped down as the leader of the Conservative Party, paving the way for another Prime Minister. Foreign secretary Liz Truss and former British chancellor of exchequer Rishi Sunak are frontrunners for the top post. Goyal said the government is also negotiating similar FTAs with Canada, the EU and Israel. Several other economies have also evinced interest in negotiating trade pacts with India. For instance, The Gulf Cooperation Council (GCC), Eurasian Economic Union (EAEU) and European Free Trade Association (EFTA) want to hammer out such deals with India, he said. At the same time, the commerce ministry does not have adequate resources to simultaneously negotiate FTAs with more nations, the minister conceded. GCC is a union of six countries in the Gulf region, namely, Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the UAE. EFTA members are Switzerland, Norway, Iceland and Liechtenstein. Five-nation EAEU comprises Russia, Armenia, Belarus, Kazakhstan and Kyrgyzstan. India and the UK aim to double bilateral trade of both goods and services to about $100 billion by 2030. The India-UK trade is dominated by services, which make up about 70% of the overall annual commerce. Given that this is going to be a modern-day trade agreement, it will go beyond the traditional pillars like goods, services and investments; it will also cover a range of areas, including gender, trade and development, labour, corruption and MSMEs, the secretary said.
Source: Financial Express
The limited use-case of the RoSCTL scrips is hurting India’s textile exporters. India is considered as one of the world’s leading textile producing and exporting nations. The textiles industry here is extremely varied, with hand-spun and handwoven textiles at one end and capital-intensive, machinery-generated ones on the other. The industry has innate capabilities to cater to different segments of the market, both within India and globally. The country today exports textiles worth more than $44 billion, of which nearly $16 billion is generated from apparel and garments exports alone. Further, it has emerged as one of the largest employers, with around 4.5 crore workers being employed. The growth rate is exponential, and the value of total exports is expected to climb to a little over $209 billion by the year 2029. However, there are certain challenges that need to be addressed urgently, especially in the export space. In order to boost employment in the textiles and apparel sector, the government launched the Rebate of State Levies (RoSL) scheme in 2016. Under this, an exporter of garments was refunded levies such as VAT/CST in inputs including packaging, fuel, duty on electricity generation, and duties on grid power accumulated from yarn stage to finished goods. Benefits included cash refunds of certain percentage of the free on board (FOB) value of exports by the exporter. In March 2019, the RoSL scheme was replaced by the Rebate of State and Central Taxes Levies (RoSCTL) scheme, in recognition of the economic principles of zero rating of exports, and provided rebate on central taxes, levies and embedded GST on various services. In April 2020, the RoSCTL scheme was merged with the Remission of Duties and Taxes on Exported Products (RoDTEP) scheme. Further, in August 2021, the government decided to continue RoSCTL till March 2024 for apparels, garments and made-ups, in exclusion of the RoDTEP. The various new scheme notifications later stated that the provision of issue of rebate under RoSCTL was implemented in the form of freely transferable duty credit scrips, to be issued electronically to exporters on the Customs systems as against cash under the earlier system. The exporter could freely transfer the scrip to the buyer—mostly, importers—for consideration that could then be used by them for payment of Customs duty. However, these scrips, despite the good intent backing them, have unfortunately begun to create an imbalance in the ecosystem, which has significantly eroded margins and proven to be counter-productive. While the intent of the government was to strengthen the country’s textile exports, the limited usage of these scrips—to pay only Customs duty—led to limited use and resulted in decreased demand, thereby leading to a situation wherein these scrips are being sold on discount of even 20%. To illustrate, while the embedded amount of central and state taxes and levies would be 100, exporters would be able to recover only 80, while the scrips end up benefiting the importer who can avail 100. Added notifications in September 2021 put forth certain conditions around their use-cases that further lowered the scrips’ value. That said, despite the socio-economic value that the Indian textiles industry offers, there are multiple imbalances that are severely impacting the industry’s competitiveness, which are stemming from the RoSCTL scheme. Export margins are depleting dramatically, resulting in importers becoming the unintended beneficiaries of this anomaly. The RoSCTL scheme extends rebates against the taxes, levies, etc, already paid by the exporters on the inputs. This rebate has been converted into scrips that are tradeable, i.e., exporters can sell these scrips to the importers, and importers, in turn, can pay import duty with these purchased scrips as an alternative to cash import duty payments. While discounts were offered on the sale of these scrips earlier too, with a recent amendment that allows the Customs authorities to recover from the subsequent buyers of the scrips (transferees) amounts due for the non-realisation of sale proceeds by the exporter to whom the scrip was originally issued, the risks associated have significantly risen. Even though the scheme was launched with the intention of making India’s textile industry competitive and bolstering the exports, these changes are acting against the government’s intention of benefitting exporters and are instead benefitting importers. This, in essence, also defeats the very purpose and intent of this scheme that was perhaps envisioned promote the government’s stated policy of ‘Make in India, for the world’. Consequently, exporters are looking at losses of Rs 1,500 crore, a number which shall see a steep rise if the government does not introduce corrective measures. Broadly speaking, the eroded attractiveness due to such risks associated with these scrips has led to heavy discounts being offered, which has had a direct hit on the margins of companies—many of which are start-ups—operating in the apparel sector. Given the multi-faceted challenges associated with the RoSCTL, there is an emergent need for the government to restart cash reimbursements as an alternative, instead of these tradeable scrips. In the event this takes time, ideally, the government should immediately broaden the scope of usage of such scrips for payment of other duties, from SEZs to DTA, IGST on import of goods or services, GST on supplies within India, etc. Also, certain provisions, like making the transferee being fully liable for scrips, need to be changed to a mechanism whereby scrips already issued could be endorsed based on the exporter submitting proof of realisation of the export proceeds. It is therefore essential that the government issues necessary clarifications to prevent damage to the exporters and increase operational efficiency of this system, which has a greater potential if its use cases are extended to grant better value to such scrips.
Source: Financial Express
Policy establishment should build capacity After rising by over 40 per cent in the last fiscal year, India’s merchandise exports growth has moderated. Although the recent moderation is partly because of the imposition of export restrictions to contain domestic inflation, the surge was not expected to sustain as it was significantly driven by global commodity prices. However, the importance of attaining and maintaining higher levels of exports cannot be overestimated. It can be an important driver of growth, which India has been missing for a while. Before the post-pandemic boom, exports remained virtually flat for several years, which affected the overall economic growth. It is thus important that India builds on the momentum it gained after the pandemic and sustains a reasonable rate of exports growth over the medium term. Since this will need policy support, the government did well last week by restructuring the commerce department.
Source: Business Standard
Goyal stressed upon the need to connect weavers and artisans with a greater clientele with both domestic as well as international customers. He also said that the Census data of Handlooms of over 35 lakh handloom workers should be put out in public domain for transparency and validation so that the benefits of handloom schemes reach the genuine beneficiaries. Textiles minister Piyush Goyal has called for onboarding of handloom weavers and handicraft artisans on the Government eMarketplace (GeM) portal and urged all government departments to purchase handloom products for all their textile needs “Stating that the e-commerce intiatives should be utilized to the fullest, he said the emphasis should be on onboarding of Handloom Weavers and Handicraft artisans on GeM portal in large numbers, while simultaneously making it incumbent upon all government departments to purchase Handloom Products for all their textile needs,” the textiles ministry said in a statement quoting Goyal from his address on 8th National Handloom Day on Sunday. For this he urged the ministries of commerce and industry, and textiles to join hands to facilitate the process. Goyal stressed upon the need to connect weavers and artisans with a greater clientele with both domestic as well as International customers. He also said that the Census data of Handlooms of over 35 lakh handloom workers should be put out in public domain for transparency and validation so that the benefits of handloom schemes reach the genuine beneficiaries. “He asked for organizing a large scale exhibition involving all awardees of handlooms and handicraft since inception of the awards to celebrate their achievement, and inspire others to emulate them,” the ministry said. Goyal also highlighted the need for quality, consistency and need for selective use of technology to reduce drudgery without compromising the basic character of handlooms.
Source: Economic Times
Textiles, auto lead 17.5% rise in exports during May-June after FTA comes into effect India’s trade gap with the United Arab Emirates ballooned fourfold in the May-June period, the first two months since the India-UAE free trade agreement came into effect, driven by a jump in oil and gold imports. The country’s trade deficit with the UAE widened to $3.92 billion in the two-month period from $980 million the year earlier. India, too, made gains, with its exports to the West Asian nation rising 17.5% to $5.4 billion. On the other hand, imports grew 67% to $9.3 billion in the period, mainly due to a spike in oil shipments in both volume and value terms amid soaring global prices. However, unlike its imports, Indian exports mainly comprised value-added and finished goods such as textiles, gems and jewellery, machinery, footwear, and automobiles. The widening trade gap is not a major concern as India largely imports raw materials from the UAE, said Arpita Mukherjee, a professor at ICRIER, an economic policy think tank. “The growth in exports, post the trade agreement, shows that the trade accord is going to benefit exports. I am not very worried about imports. We have to import raw materials, intermediate goods and goods that are not produced in the country," Mukherjee said. Countries such as China, the US and India are scouring the world to secure raw materials and energy supplies to feed their industry and boost economic growth. For example, China’s ambitious Belt and Road Initiative, or BRI, aims to develop multiple trade corridors to secure factory supply chains and energy. In that context, the trade accord with the UAE, a key energy supplier and a significant market, may offer long-term benefits to India. India’s gains in exports to the UAE were most visible in sectors where it gained duty-free access under the Comprehensive Economic Partnership Agreement (CEPA), which came into effect on 1 May. While footwear exports surged 73% in May, gems and jewellery exports grew by 33%, tea, coffee, and spices rose by 50%, ready-made textiles by 42% and automobiles by 192%. As a result, exporters expect India to sell $40 billion of goods to the UAE in the current fiscal year from $28 billion in FY22. “The first month is very impressive despite the fact that many sectors are still preparing to exploit their potential. We should look for exports of $35-40 billion this fiscal year," said Ajay Sahai, director general and chief executive of the Federation of Indian Export Organisations. Product-wise segregated data is not available for June yet. Pharma exports also reported a 52% growth. The pact provides that Indian pharmaceutical and medical products will get regulatory approval within 90 days of regulatory approval in developed jurisdictions such as the US, UK, European Union, Canada and Australia. Vegetable exports surged 147%. For the first time, the pact has listed 17 agencies from the Indian side, besides the Export Inspection Council, to issue certificates of origin to exporters digitally. They include the Spices Board, Coir Board and Tobacco Board. This facilitates faster clearances and trade. The pact has eliminated duties for 90% of India’s exports in value terms to the UAE, covering sectors including gems and jewellery, textiles, leather, and engineering goods. “May was the month of Ramadan with fewer working days. It is over the next few months that we will get the real trend in exports. The imports are higher largely due to high-value petroleum imports. UAE is India’s third largest partner, and the agreement will help Indian exporters increase sales in the African and Arab markets. In the next five years, we aim to touch $100 billion trade in goods and $15 billion in services," a government official said, requesting anonymity. Queries emailed to the UAE trade ministry remained unanswered till press time. A commerce department official said, “India-UAE CEPA has been brought into force only recently. It’s not advisable to draw any inference or conclusion about business direction or trends prematurely from one month’s data, although bilateral trade has been put on a high-growth trajectory through the India-UAE CEPA. Data from many months would be necessary for a meaningful analysis. Needless to say, both sides are expected to gain from different aspects of India-UAE CEPA over a period of time." While exports of petroleum products such as petrol and diesel more than doubled during May, crude oil imports more than tripled, leading to the trade imbalance. Of the $4.9 billion worth of imports from the UAE in May, oil imports were worth $2.9 billion. Excluding oil, imports from the UAE rose by 43%, while exports declined 11% during the month. Petroleum imports in volume terms grew by 62% in May over the corresponding month last year. India imported crude oil at about $109 a barrel in May and at $116 in the following month. India has developed a trade deficit with the UAE since FY20 as it buys more oil from the West Asian nation. For example, in volume terms, petroleum imports tripled in FY22, and the trade deficit widened to $16.8 billion from $10 billion in the previous year. Pearls imports grew by 28% in May, and gold imports grew by a whopping 248%. India has extended a 1% duty concession for gold imports from the UAE for up to 200 tonnes of inbound shipments under the trade pact. India has also offered significant tariff concessions on dates, petroleum products, petrochemicals, metals, and minerals to the UAE under the pact. Biswajit Dhar, a professor at Jawaharlal Nehru University, said, “These are the initial signs of the benefits that India could secure from the CEPA. However, Indian businesses would have to ensure that these initial gains are sustained. That’s the critical issue." The pact, negotiated in record 88 days, was signed between the two sides on 18 February. It is the first major free trade pact signed by the Narendra Modi-led government since it came to power in 2014 and is likely to benefit about $26 billion worth of Indian products that are subjected to 5% import duty by the UAE. UAE’s share in India’s total exports has shrunk from 7.2% in April to 6.9% in the quarter ended June. The UAE accounted for 6.65% of total exports in FY22, posting a 68% growth. In the case of imports, the UAE accounted for 7.31% of India’s total imports in FY22, a 68% growth. Imports at major US ports to slow significantly in H2 2022: NRF
Source: Times Now News
We are living in a time when fashion trends change by the week, sometimes even sooner, making what’s trendy today, passe tomorrow. This spurs many to visit the closest mall and scoop up the latest offerings, discarded clothes worn once or twice – and these are precisely the consumers the high-street labels cater to, churning out fashion refreshes ever so often enveloping them in a mindless and vicious cycle of buy – wear – throw, repeat. The rate at which garments are discarded today is alarming. So, have you ever paused to consider where our clothes go once discarded? Here are the facts you should consider as you reach out to buy the nth new garment: Rising consumerism and the fast fashion trend have led to an unprecedented growth in the global textile industry in the past few years. With mass production and low costs, fast fashion caters to consumers’ growing appetite for the latest trends, but in the process generates a lot of waste. Over 70% of fast fashion apparel ends up in trash within a year of being sold. According to the Waste Management Hierarchy – a scale that ranks waste management options by their environmental impact – clothes do not biodegrade and remain intact for over 200 years before decomposing, which increases the carbon footprint caused by garments in landfills. Further, the global fashion industry is also the second biggest consumer of water. A pause here and let this really sink in – the greenhouse gas emissions by the global textile industry are greater than those from shipping and international air travel combined. Find it difficult to believe, right? So, here’s hoping this will lead to more mindfulness influencing your future clothes buying patterns. This mindfulness is also the reason a lot of fashion influencers are adopting the ‘The Less is more’ philosophy. The reasons are simple — we have only this planet, so we better take care of it instead of dumping toxic waste into it. There isn’t no Plan(et) B, in this case. Additionally, the more clothes you have the more physical and mental space they take up, and that is clutter you can definitely do without. All it takes is asking yourself a few questions when you find yourself really wanting to buy “just that one new dress, or shirt, or …” — Why am I buying it? How many times will I wear this? Do I really need this? Can I put this money to better use? What is the carbon footprint I add to my account when I buy this? If you hesitate on even one answer, put that garment right back where it belongs – on that shelf in the store. And pat yourself on the back for having just done the planet and yourself a big favour. Once you begin to do this honestly, you will realise how easy it can be to not give in to temptation. Now that I’ve given you the whole problem, I will also give you a solution – which is the premise of this article. The answer lies in one word – UPCYCLE. If you join this now-trendy club, you will find a lot more meaning, and your outfits will become not only a trendsetter but a torchbearer for the new sustainable fashion movement. So how does one do that? You may ask? Here goes, my take on it: It may surprise you, but fact is that of the total textile waste generated annually in the world, 95% could be reused and repurposed! Yes, 95%. Upcycling can breathe new life into a discarded garment by adding your own special touch to it and make you feel so good too as repurposed garments save the environment in many ways – energy and water consumption, fewer toxic chemicals, and no harmful gas emissions. In the present pandemic mutating world, crippled by global warming and deprivation, there is no better time to start upcycling your garments yourself.
Ways you can create your own upcycled fashion statement Take a plain T-Shirt and jazz it up – add a built-in choker or do some basic embroidery near the neckline and voila! you have a brand-new looking T-shirt. A cozy old sweater can be quickly revived with just a little imagination. Those jeans you haven’t worn in years are just begging to be transformed into a cute pair of shorts or a denim skirt. It is so easy to upcycle clothes – from shirts to cushion covers, old sarees to curtains, or jeans to funky bags, you can DIY your thoughts just the way you wish. All you need will be a little imagination, inspiration, cloth, and your sewing material to bring your ideas to life. Once you get started, the possibilities are endless. We can assure you, soon you are going to be afflicted with an “upcycling brain”, if I may call it that – symptoms of which will most likely cause a glint in your eyes the minute you set your eyes on anything you feel needs that “upcycling treatment” and your mind will be whirring away presenting the many possible ways you can “turn that piece of garment around”. A smattering of creativity can revive your tired wardrobe. Upcycling your clothing would not only benefit the earth but also your wallet. Just think about how much money you can save when you DIY your latest style obsessions. All you need is a cracker of a sewing machine that offers you enough features for you to make it your go-to each time you are hit by the upcycle fever. So go and get one of the feature-rich sewing machines and the world will be at your feet soon. Sewing will open a whole new world of creativity. Bonus – it will also help alleviate stress and boredom. Small steps make for big impact and upcycling can be revolutionary in many ways. It is also one of the powerful ways to ensure a better and waste-free future. So, if you are now ready to give your closet a makeover, say a big resounding yes and get to it!
Source: Times of India
RSWM Ltd, one of India’s largest manufacturers and exporters of value added synthetic, mélange, blended spun yarns and denim fabric, has announced that its sales for the first quarter (Q1) of fiscal 2023 (FY23) ended June 30, 2022, reached ₹1,024 crore, up 38 per cent from ₹742 crore in Q1 FY22. EBITDA went from ₹90 crore in Q1 FY22 to ₹141 crore in Q1 FY23. Upbeat sentiments in domestic markets drove consumer demand and market witnessed a buoyant demand. School uniform season increased demand for yarn, while wedding season increased footfalls on retail end, the company said in a media release. Domestic demand of the company witnessed a strong growth, increasing 62 per cent year-over- year (YoY). Export sales were in-line with Q1 FY22 at ₹286 crore and exportsmaintained momentum YoY despite of recession concern. RSWM’s cost optimisation programme helped in maintaining the profit margin. Strong realisation led to PAT growth at ₹67 crore up 81 per cent from ₹37 crore in Q1 FY22. Higher raw material prices are getting absorbed by end users; but it still continues to remain a concern for the industry. Additionally, a 30,000 spindles yarn capacity unit at Gulabpura and denim fabric and knitting units at Banswara undertaken last year, started commercial production from July 1, 2022. The company’s debt to equity was 0.89 as on June 30, 2022. Commenting on the results, Riju Jhunjhunwala, chairman and managing director of RSWM Ltd, said: “For Q1 FY23 our focus on execution and cost controls have helped us achieve a strong Q1 performance, where we have increased revenues and improved margins YoY. We have commenced our knitting unit and other expanding capacities in Gulabpura and Banswara, this will put us in a strong position for the coming quarters. “While commodity prices continue to remain our concern, cost reduction programme and strong positioning is helping us in maintaining profit margin. We remain committed to future growth plans with focus on enhancing our product portfolio, geographical reach and improving efficiencies of higher return on investments. We now look into the future with excitement and confident in our ability to drive continuing value for our stakeholders by delivering the strategic business plan.”
Source: Fibre 2 Fashion
Bangladesh’s textile industry is currently facing major challenges due to the global recession and inflation as retailers in both European and US markets are either deferring the shipments of finished products or delaying orders due to soaring inflation. The world’s second-largest garment exporter after China is facing prolonged challenges including power shortage domestically affecting production on one hand while its major markets are postponing shipments due to surging inflation, Bangladesh Live News reported. Plummy Fashion Ltd; a supplier of Phillips-Van Heusen Corporation, the parent company of fashion brand Tommy Hilfiger and Inditex SA’s Zara observe a drop of 20 per cent in new orders in July from a year earlier. Bangladesh’s textile industry is facing unfavourable trade policies, internal security concerns, the higher cost of imported inputs apart from post-Covid-19 supply chain disruptions and a decline in global demand. The energy crisis in Bangladesh has increased the cost of the business in the country. One of the leading exporters that supply to Gap Inc. and H&M Hennes & Mauritz AB claims that it depends on generators for at least 3 hours a day to power its dyeing and washing units in the manufacturing hub of Gazipur on the outskirts of Dhaka, reported Bangladesh Live News. The cost of electricity from generators is three times more than power from the regional grid. At the onset of the Covid-19 outbreak, Bangladesh garment orders worth USD 2.87 billion were cancelled as of March 31, 2020, according to a Bangladesh Garment Manufacturers Association (BGMA) estimate. This affected about 2.09 million workers and over 1,048 factories. In the first week of April 2020, RMG exports declined by almost 84 per cent. Since then the RMG exports could not pick up to the desired level of growth due to constricted demand and radical shifts in consumer tastes apart from Covid-19-related obstacles, according to Bangladesh Live News. According to Policy Insights, a flagship publication of the Policy Research Institute in Bangladesh, the country’s RMG has considerably grown in recent decades increasing from USD 120,000 in FY 1985 to about USD 34 billion in 2019. However, all the growth came in with massive over-concentration in a few products and few markets. According to the Bangladesh Bureau of Statistics (BBS) estimate, Bangladesh’s growth, which had declined to 3.5 per cent in 2020 due to covid-19 led disruptions recovered to 6.9 per cent in 2021.
Source: The Print
The government’s modernisation plans for Egypt’s textiles sector are paying off, with a greater role planned for the private sector, reports Doaa Abdel-Moneim. As part of the cabinet-sponsored dialogue to discuss the State Ownership Policy Document that reviews Egypt’s public-sector industries, a workshop last week saw members of the government coming together with main players in the textiles industry to explore greater opportunities for the private sector. The textiles industry is one of the sectors included in government plans to widen the role of the private sector. Ahmed Mustafa, chair of the state-owned Cotton and Textiles Industries Holding Company (CTIHC), said that a larger role for private-sector textiles companies with their financing and production capacities would increase the sector’s contribution to GDP. Textiles and ready-made garments (RMGs) account for three per cent of Egypt’s real GDP and contributed 11 per cent to the country’s non-oil exports in 2021, according to figures from the Industrial Modernisation Centre (IMC), an affiliate of the Ministry of Trade and Industry. However, the figures do not compare with the large number of companies working in the sector, currently 4,600, representing a total investment of $6 billion and an overall labour force of 1.5 million workers, according to the IMC. The Ministry of Public Business Sector has proceeded with plans to modernise the sector since 2019. Under the plans, 23 state-owned textiles companies have already been merged into eight. Massive investments of around LE23 billion are being pumped into CTIHC affiliates to provide new machinery, new buildings, and new staff. Minister of the Public Business Sector Hisham Tawfik, whose portfolio focuses on upgrading and privatising state-owned companies, told Al-Ahram Weekly that as of the end of 2022 through the beginning of 2024, improved textiles factories under the plans would start production. He said the ministry was working on improving their production capacity through scrapping old machinery in the 60 factories owned by the 23 companies. Four factories have been passed to an Indian company for complete rehabilitation. “The outcome has been improving the production capacity over four-fold for high-quality products,” he said. The modernisation plans have also included setting up a company under the name of the Egyptian Cotton Hub (ECH) to market the sector’s production of yarns and garments. The ECH is managed by foreign marketing experts. It sells two made-in-Egypt textile brands, Nit, whose products have already been exported to Turkey, Denmark, Italy, and the US, and the cheaper brand Mahala. Chair of the Textiles Industries Division at the Federation of Egyptian Industries Mohamed Al-Morshedi said that supporting marketing policies and production capacities was imperative as long as the state was keen on raising private-sector investments in the sector. “Textiles production needs to be able to count on home-grown materials in order to increase the added value of products and increase export revenues,” he said. He called for increasing public investment in the textiles industry, particularly in the dyeing and processing sectors, with a view to providing RMGs manufacturers with the necessary production inputs to fulfil their export targets. He wanted to see the state play a greater role in producing synthetic fibres, as 55 per cent of these are currently imported. A number of major players in the sector told the Weekly that discussions held on improving the textiles sector under the State Ownership Policy Document still lacked practical ways to deal with the challenges the industry is facing. They believe that the investments the state plans to attract to the industry are built on ill-conceived data and studies that do not reflect the real situation of all sub-sectors. The Apparel Export Council of Egypt (AECE) and the Textile Export Council released a joint statement followed the cabinet sponsored meetings counting the challenges the textile industry is facing currently. According to the statement, the industry input prices have jumped by 30 percent, and the shipping costs recorded a 120 per cent increase both resulting in increasing production costs since the onset of the pandemic. The statement also indicated that the sector’s factories lacks cash liquidity as a result of the raw materials prices increase. In addition, the increase in imports and exports fees have added to the costs and thus decrease the competitiveness of Egyptian garment exports, according to the statement. “This issue represents a great challenge against the state’s plan to increase exports to $100 billion annually over the coming three years.” Egypt’s textiles manufacturing industry is the second-largest industry in the country and was significantly affected by the Covid-19 pandemic. Egypt’s textiles exports shrank by 14 per cent in 2020 to post $2.8 billion, down from $3.7 billion in 2019, according to the Textiles Exports Council. The strengthening dollar, spiraling inflation, global supply chain disruptions, and economic uncertainty amid the ongoing Russian-Ukrainian conflict are major challenges the industry is currently facing. The industry is anticipated to register a compound annual growth rate (CAGR) of over four per cent between 2022 and 2027, according to market advisory firm Mordor Intelligence. Egypt is planning to open the world’s largest textiles factory in the Delta city of Mahalla with a daily production capacity of 30 tons. The government has announced incentives to grow high-quality cotton to meet the needs of the factory, which is expected to create opportunities for players operating in the market. The factory was planned to be inaugurated in March 2022, but the repercussions of Covid-19 and spillovers from the war in Ukraine delayed the opening. In further efforts to support the sector, Minister of Trade and Industry Nevine Gamea issued a decree in February establishing the Textiles Industries Council chaired by the minister and including representatives from the state and industry experts. Gamea said that the action would help to develop Egypt’s textiles industries and coordinate efforts to strengthen sub-sectors with a view to carrying out overall strategic plans.
Source: Online
Bangladesh’s home textile makers have insisted that the government subsidise 50 per cent of the additional production cost of the country’s terry towels and other home textile products after a fuel hike would likely raise the monthly production cost of the goods up to 6 per cent. The additional expenses to the textiles’ production cost due to the fuel price hike will be around $7-$8 million. The BTTLMEA members' average exports on a monthly basis are valued at $175 million, of which 90 per cent is their production cost, Bangladeshi media reports said quoting M Shahadat Hossain, chairman of Bangladesh Terry Towel and Linen Manufacturers and Exporters Association (BTTLMEA). The BTTLMEA head also demanded that the government extend its support without any delay to the export-oriented readymade garment and textile sector to avoid any further negative impact in the wake of the coronavirus pandemic. The Bangladesh government had revised the prices of all fuels last week, as per Bangladeshi media reports. While the prices of diesel and kerosene were hiked by 42.5 per cent to Tk 114 a litre from Tk 80, the price of petrol was increased by 51.16 per cent to Tk 130 a litre from Tk 86. Moreover, octane’s price was raised by 51.68 per cent to Tk 135 a litre from Tk 89
Source: Fibre 2 Fashion
A research centre has opened up in Singapore to accelerate innovation in textile recycling and translate outcomes into practical solutions. Nanyang Technological University, Singapore, and Royal Golden Eagle (RGE), a global resources-based manufacturing group, have partnered on the US$6m RGE-NTU Sustainable Textile Research Centre for recycling. The facility will research areas such as next generation eco-friendly and sustainable textiles, and refabricating textile waste into fibre. The aim is to study the chemistry of various textile materials and determine the optimal processes and techniques required to bring the industry closer to a circular textile economy. Plans are also underway to build a textile recycling pilot plant that is low carbon, low chemical emissions, and energy efficient in Singapore. The new sustainable textile recycling solutions developed under the RGE-NTU SusTex are expected to be test bedded in this plant. The move is in line with Singapore’s Zero Waste vision, as well as the Singapore Green Plan 2030, a national sustainability movement which seeks to rally bold and collective action to tackle climate change. The research centre, located at NTU’s School of Materials Science and Engineering, launched last week and comes at a time when an estimated 92m tonnes of textile waste is created globally each year, according to research by the BBC. NTU president professor Subra Suresh says: “The goal of the RGE-NTU Sustainable Textile Research Centre is very much aligned with Singapore’s zero waste vision to build a sustainable, resource-efficient and climate-resilient nation. This partnership between NTU and RGE draws on RGE’s industry experience as a global resources-based manufacturing group and leverages NTU’s intellectual assets in materials and environmental chemistry.” RGE executive director, Perry Lim, adds: “We want to contribute where we can achieve the most impact. More countries are banning the import of waste including textile waste. However, current textile recycling technologies, which rely on a bleaching and separation process using heavy chemicals, cannot be implemented in urban settings such as Singapore. This is where RGE can help, drawing on our 20 years of experience in viscose fibre making, to provide $6m in funding to establish the research centre and fund its work; share our global R&D expertise as the world’s largest viscose producer; and to potentially scale up the viable innovations and solutions across our global operations. Backed by Singapore’s strong research ecosystem and leveraging NTU’s engineering capabilities, we aim to catalyse innovation and develop a first-of-its-kind urban-fit textile recycling solution.” The joint research centre is part of NTU’s ambition and efforts to mitigate the impact on the environment under its NTU 2025 strategic plan, and builds on RGE’s sustainability commitment, part of which is to explore how waste can also be used as a resource to generate new materials. The joint research centre will draw upon the expertise of NTU scientists in the School of Materials Science and Engineering and the School of Chemical and Biomedical Engineering. What research will the RGE-NTU Sustainable Textile Research Centre undertake? • Cleaner and more energy efficient methods of recycling: looking at greener ways of textile recycling, with a focus on cellulose-based fabrics including rayon, viscose and cotton, minimising the degradation of fabric properties, and refabricating textile waste into fibre; • Automated sorting of textile waste: using a combination of advanced spectroscopic techniques and machine learning capabilities for identifying and sorting textile waste based on fibre composition, and developing an automated system to remove accessories such as zips and buttons; • Eco-friendly dye removal: developing eco-friendly methods of removing dye from textile waste using little to zero chlorinated chemicals, and formulating greener and biodegradable dye substitutes; • New textiles: finding alternative uses for textile by-products and developing a new generation of eco-friendly and smart textiles with attributes such as moisture insensitivity, electrical conductivity, and infrared/ ultraviolet radiation reflectivity. Leading the joint research centre in these research projects is Professor Hu Xiao from the NTU School of Materials Science and Engineering, who is also the director of the Environmental Chemistry & Materials Centre at NTU’s Nanyang Environment & Water Research Institute.
Source: Just-Style
Vietnam is projecting to clock US $ 45.70 billion export turnover in garment and textile sector during 2022, as stated by the General Department of Vietnam Customs. As of mid-July, garment and textile was one of the four sectors posting the highest export revenue, with a record of US $ 20.40 billion, up 19.70 per cent year-on-year. Garment and textile industry was also amongst the six groups whose export value increased by over US $ 1 billion, according to the authority. The customs further added that around 14,000 businesses are operating in the sector, with combined capital of over US $ 46 billion, employing about 200,000 labourers. Vietnamese garment and textile products are shipped to 55 countries and territories worldwide, including 17 markets with a turnover of more than US $ 100 million each. Earlier, the Vietnam Textile & Apparel Association said textile and garment producers target to earn up to US $ 21 billion from exports in the second half of 2022, raising total shipments of the year to around US $ 42-43 billion.
Source: Apparel Resources
Throughout the ages, there has been one language that remains universal: fashion. Everpresent and ubiquitous, fashion lives in our daily lives, translated into the apparel we put on in the morning when we get up and go to work or the gym. It is the outfit we wear when we go out at night or to the supermarket, to see friends and family and when we go to sleep at night. The ultimate form of self-expression and reflection, it is versatile, accessible and can provide a sense of comfort and belonging. However, over the years, the way we dress and consume fashion has had a significant impact - not just on society but on the environment and the planet itself. According to an analysis from The Global Fashion Agenda and McKinsey, the global fashion industry is accountable for 4% of the world's greenhouse gas emissions. Altogether, the fashion industry emits the same quantity of greenhouse gasses annually as the economies of the United Kingdom, Germany and France combined. More than 70% of these emissions have been attributed to upstream operations within the supply chain, such as raw material processing. The other 30% stems from downstream processes like packaging, transport, retail and end-of-use. With demand for fashion only increasing, as the sector is projected to grow up to 63% in certain emerging markets over the next 10 years, concerns on what impact this may have on the planet only increase. As we consume more fashion than ever, apparel production continues to contribute to climate change and global temperature increases. To help keep the planet's temperature under control, science dictates that we should limit its growth to 1.5 degrees Celsius and produce less carbon than we take out of the atmosphere, reaching 'net zero' emissions by the second half of the century. Despite efforts to reduce overall emissions, the fashion industry is projected to miss the 1.5°C pathway by 50% under its current trajectory. To help the fashion and textile industry reach its goal of being 'net zero', leading fiber manufacturer Lenzing has outlined its own carbon reduction mission with the support of its industry network. Since developing its TENCEL™ brand 30 years ago, Lenzing has been committed to developing sustainable fibers that are better for both consumers and the planet. A focus paper the company published in April outlines an ambitious target by the company: to reduce carbon emissions per ton of product by 50% by 2030 on top of becoming net zero by 2050. Its wider sustainability strategy heralds the commitment to the Science Based Targets (SBT) initiative and supports the United Nations Sustainable Development Goals to limit global warming. This strategy has informed Lenzing’s introduction of carbon zero TENCEL™ branded fibers in 2020 and the expansion of its portfolio with the launch of carbon zero TENCEL™ fibers with REFIBRA™ technology in 2021. In line with the SBT approach, carbon-zero TENCEL™ fibers have been third-party certified as carbon neutral by means of carbon emission reduction and respective compensation measures. This means that the fibers are developed according to the environmental ethos of lower carbon emissions levels from production, increased use of renewable energy sources and support of carbon reduction projects to make up for emissions that are not yet avoidable. Contributing to the fashion and textile industries' need to reduce emissions, brands and designers around the globe choose to use fabrics produced with carbon-zero TENCEL™ Modal and Lyocell fibers, which are third-partied certified as carbon neutral to meet consumer demand for more responsible products. "We have been using TENCEL™ Modal and Lyocell fibers from Lenzing for many years,” said Lily Tamin, Managing Director of Lucky Textile Group . “This partnership has allowed us to produce and release a wide range of textile and fashion products, from casual wear to anticipated collections made from carbon zero TENCEL™ fibers. The rise of a sustainable lifestyle has created a significant demand for eco-friendly textile and fashion offerings. Our long-standing partnership with Lenzing has led to new business opportunities and brought added value to our fabric quality and customers. We are eager to explore new collaborations with TENCEL™ fibers in the future and remain committed to contributing to the sustainable fashion industry." Focusing on developing even more carbon-zero innovations that will make a positive difference within the fashion and textile industries, Lenzing continues to work closely alongside its partners. Recently showcasing its carbon neutral LENZING™ FR fiber at Techtextil Frankfurt in a newly launched collaboration with long-time partner Textil Santanderina for the protective wear segment, the manufacturer also extended its TENCEL™ branded fiber offering to the workwear segment through its long-time partnership with Klopman. In addition to having a reduced carbon footprint, its carbonneutral LENZING™ FR fiber also provides complete supply chain transparency through its patented fiber identification technology. As garments made with fewer carbon emissions continue to become the norm, Lenzing is set to continue to develop innovative and sustainable solutions which address the needs of industry partners, customers and the environment.
Source: Fashion United
The fashion industry is one of the most polluting industries in the world and is responsible for roughly 10% of global greenhouse gas emissions. There are many contributing factors to this problem, including pollution from textile factories, waterresource depletion, and merchandise waste. Younger consumers are increasingly prioritizing sustainability efforts in their purchasing decisions. In fact, 74% of millennials and 62% of Gen Z are willing to pay more for sustainable goods. Consumer demand has caused a discernable and welcome shift towards sustainability in the fashion and apparel industry. This underscores that sustainable fashion and transparency about those efforts will be increasingly important in the years to come. To that end, below are a few ecocentric trends and related intellectual property (IP) issues that fashion brands should consider to further their sustainability goals while preserving brand value.
Recommerce—Boosting Sustainability While Maintaining Brand Integrity Consumers are reducing waste by purchasing sustainable, and increasingly secondhand, goods. The resale, or “recommerce,” market contributes to the circular economy by reducing clothing waste and extending garment lifecycles. The secondhand market is projected to reach $77 billion by 2025 and resale clothing is projected to be 27% of consumers’ wardrobe by 2023. Even the luxury sector—a previous skeptic of resale—has warmed up to recommerce. That said, resale’s numerous environmental and economic advantages can come with a trade-off—namely, uncertainty as to product authenticity. The threat of fakes poses challenges for both resellers and brands alike. While the first-sale doctrine limits trademark owners from controlling resale of authentic and unaltered trademarked products, the failure to police against counterfeits could result in the dilution or loss of a trademark owner’s rights. Counterfeits also pose significant risks for resellers in the form of infringement and even shareholder lawsuits. Brands can boost sustainability metrics and solve for infringement risk by partnering with recommerce retailers. For example, brands like Gucci, Burberry, and Stella McCartney have been partnering with popular reseller The RealReal for years. By partnering with recommerce retailers, brands can participate in the authentication process, which allows them to prevent brand dilution while still reaping the benefits of participating in the circular economy. Of course, the cache and credibility of brand partnerships surely boosts reseller reputations too. Brands are also increasingly establishing their own resale programs. For example, Patagonia, Eileen Fisher, lululemon, and Levi’s allow consumers to sell back, trade in, and/or purchase gently used clothes. This approach similarly satisfies consumer demand for fully authenticated secondhand products. Brands can also consider amplifying their trademark filings to cover sustainable or circular market offerings. For example, Nike and Madewell have filed to register some of their brands in association with promoting public interest and awareness around environmentally sustainable practices.
Blockchain Technology—Combating Counterfeits and Communicating Sustainability Metrics A blockchain is a digital ledger used to record transactions and track assets. Once information is added to a blockchain ledger, the information effectively cannot be removed or modified, which ensures transparency and reliability. This makes blockchain a particularly strong tool for both anticounterfeiting and substantiating sustainability claims. For example, non-fungible tokens (NFTs)—one-of-a-kind blockchain-based assets—are most often used to represent digital goods and have revolutionized the fashion industry by digitizing physical goods and potentially reducing the need for physical resources, distribution, and manufacturing. Indeed, brands are increasingly filing to protect their key brands in association with NFT goods. However, NFTs can also be tethered to real-world products, such that they can be used to combat the ever-increasing sale of counterfeit goods that has been accelerated by the rise of secondhand fashion. Specifically, NFTs can be used as digital “passports,” which include blockchain-based ledgers that verify the provenance of associated physical products that aid in authentication efforts. Key players in this space include Arianee, which is establishing “NFT digital passports for luxury goods” that will digitize service history and repairs, and LVMH’s Aura Blockchain Consortium, which issues digital certificates of authenticity that also detail products’ sourcing and sustainability metrics. Digital passports are typically coupled with smart tags using radiofrequency identification (RFID), quick response (QR) codes, or near-field communication (NFC), which are attached to the associated physical products. Digital passport NFTs are a potential win-win for brands. Their authentication technology will help consumers avoid inadvertently purchasing counterfeits, which reduces brand dilution and increases consumer trust. Further, their ability to communicate and verify information about a product’s production and origin help to verify a brand’s sustainability claims—which, again, promotes consumer trust and loyalty.
Sustainability Trademarks—Transparently Conveying Ecological Commitments Trademarks identify the origin of goods, but they also convey brand values—the emotions, missions, and purposes a brand stands for. Thus, trademarks are particularly effective for communicating sustainability. Luxury brands have increasingly adopted trademarks to communicate the sustainable nature of their products. For example, Prada’s Re-Nylon™ line of bags is made with recycled nylon. Louis Vuitton also adopted an Upcycling Signal Logo—which is a combination of the LV logo and the recycling symbol—for products that are either upcycled or contain at least 50% recycled and bio-sourced materials. Similarly, Valentino recently introduced a sustainable version of its signature Rockstud sneakers, which are branded with an ecocentric version of its V logo. Trademarks communicate a company’s values and signify its reputation. However, to avoid backlash and reputational harm, brands must be transparent and should not overstate their ecological commitments. For example, each of the above mark owners is transparent about its sustainability practices, fiber sourcing, and/or ecological footprints. Fashion and retail brands can enjoy similar success by pairing their branding efforts with achievable goals and transparent messaging.
Takeaways There is consumer demand for eco-friendly goods, and fashion brands have certainly reoriented to meet that demand through recommerce and enhanced messaging around their ecological commitments. That said, brands should be careful to consider the various pitfalls that can arise in this space. Intellectual property counsel can help brands navigate these issues—including through negotiating contractual arrangements with recommerce partners, and selecting, clearing, and protecting trademarks that truthfully reflect sustainability practices and ecological policies.
Source: JD Supra
Local textile millers have plunged into a triple whammy – falling yarn prices, low gas pressure and a record rise in fuel prices. To top it all, two new troubles in the form of zone-based weekly closure of factories and a possible rise in power tariffs are now looming over them. Prices of local yarns, the key ingredient for readymade garments, experienced a 20% fall over the last three months because of slack demand from apparel makers in the face of belt-tightening by consumers amid soaring inflation. Yarn now costs $4 per kg, down from $5.2 per kg in May. If losses continue this way, entrepreneurs will find it tough to repay bank loans in time, say industry people. In the meantime, cotton prices have also registered a 14% drop in the last four months. The US futures index now stands at $0.97 per pound, while the spot market C&F price is $1.43 per pound. New entrants in the textile sector with investments amounting to $3 billion are now worried over the onset of one trouble hard on the heels of another. Industry insiders say they cannot absorb any rise in production costs amid falling yarn prices. Khorshed Alam, chairman of Little Star Spinning Mills Limited and former director of Bangladesh Textile Mills Association, told The Business Standard, "Textile mills run 24/7. If the government decides to regionalise the closure of factories once a week, will we get uninterrupted gas supply in the remaining six days?" "We will suffer losses if we are not provided with required gas pressure in our six-day operation," he said. Not many taking yarns Spinning millers say many apparel makers are not complying with a fixed deadline for opening LCs even after taking proforma invoices because of declining yarn prices. Moreover, they are not receiving yarns despite opening LCs, and are offering lower than what have been fixed in proforma invoices, they note. Proforma invoice is the initial negotiation price and quantity on the basis of which the LC is issued in favour of the buyer after a certain period of time. Normally, a buyer has to confirm LC within 7 to 15 days after getting PI. Md Mosharaf Hossain, managing director at Mosharaf Composite Textile Mills Limited, one of the largest textile mills in Bangladesh, told TBS that he issued proforma invoices to at least five of his buyers in the past one month, but they did not open LCs within the specified time. Again, a buyer did not receive the goods even after opening the LC, he said. "They are asking us to lower yarn prices by 10-20 cents even after receiving proforma invoices," he pointed out. Mohammad Ali Khokon, president of Bangladesh Textile Mills Association (BTMA), told The Business Standard, "I have already received such complaints from many spinning mills." Seeking anonymity, another BTMA leader said, "We will soon meet with two associations of apparel owners over this issue." Around eight or nine months ago, the situation was completely different when yarn prices were very high. At the time, spinning mills were reluctant to supply yarns to apparel makers even after proforma invoices had been issued for them. Mohammad Hatem, executive president of Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), told TBS, "It is true that yarn prices fell by $1 per kg in the last three months, which put spinners in trouble." "The demand for clothing in our main export market has decreased by 20%. Again, as yarn prices are falling, foreign retailers and brands are placing work orders lower than they actually negotiate," he said. "That is why our garment owners open LCs for a lower number of raw materials," Hatem, also owner of Narayanganj-based MB Knit Fashions Ltd, also said. Elaborating, he said one of his buyers in Europe gave an order sheet for $1 million worth of apparel goods after finalising a $5 million work order. The buyer is holding on to the remaining $4 million worth of order sheets, hoping for a further fall in yarn prices – which is unethical. "We can do nothing in this case," he also said. According to sources, spinning mills now have stocks of three to four times more yarns than usual owing to reduced demand. Bangladesh is the second top cotton importer in the world. In 2021, it imported about 8.2 million bales of cotton. Textile millers expect cotton imports to reach 9 million bales this year. According to BTMA, there are more than 1,500 textile mills in the country, including spinning, fabric, dyeing-printing and finishing, which are members of the organisation. There are about 1,000 more mills that are relatively small. According to BTMA, the total investment of textile mills in the country is about $7 billion.
Source: TBS News
