INTERNATIONAL
NATIONAL
India expects its proposed free trade agreement with the European Union to be a “game-changer” and is looking forward to a mutually advantageous conclusion to the negotiation process for the pact within a “short planned timeline”, External Affairs Minister S Jaishankar said on Tuesday. In an address at an event of the Confederation of Indian Industry (CII), Jaishankar also said that Europe and India can strengthen each other’s strategic autonomy by reducing dependencies, cooperating on critical technologies and ensuring supply-chain restructuring. The external affairs minister also said that capacity building would be key to sustain India-Europe cooperation. “We expect the India-EU FTA will be a game-changer for the India-EU relationship. We look forward to a mutually beneficial, mutually advantageous conclusion to the negotiation process within a reasonably short planned timeline,” he said. Jaishankar said India is expected to be the only major economy to keep growing at well above six per cent per annum in the foreseeable future, and thus, will remain one of the major growth engines of the world. In June last year, India and the European Union restarted the negotiations for the long-pending trade and investment agreement after a gap of over eight years. Launched in June 2007, the negotiations for the proposed agreement have witnessed many hurdles as both sides had major differences on crucial issues. “India’s new approach to trade agreements addresses issues of non-tariff and behind-the-border barriers, quality standards and related benchmarks,” Jaishankar said at the India Europe Business and Sustainability Conclave. “With like-minded partners, we have actually demonstrated in recent years a fast-track change in our FTA negotiation processes. FTAs with the UAE and Australia were actually concluded in record time,” he said. Behind-the-border barriers are non-tariff discriminatory trade barriers within a country. “Europe and India can strengthen each other’s strategic autonomy by reducing dependencies; cooperating on critical technologies; and ensuring supply-chain restructuring. The India-EU FTA is therefore our very important goal,” Jaishankar said. The external affairs minister said the recently unveiled Trade and Technology Council (TTC) will provide the structure and strategic guidance to the partnership between the two sides. The TTC is expected to facilitate exchange of critical technologies relating to an array of domains, including artificial intelligence, quantum computing, semiconductors and cybersecurity. The TTC with India is the European Union’s second such technology partnership after the first one with the United States that was firmed up in June 2021. “I would like to say that India’s relations with Europe are stronger and deeper than ever before and this event itself is a testimony of that assertion,” Jaishankar said. “Between us, rests the largest democratic and free market space globally. The business communities of India and Europe have a large stake and an enabling role in this transformation,” he said. Jaishankar said the EU is one of India’s largest and most important trade partners. “Our bilateral trade was in excess of USD 115 billion in the FY 2021-22, which is the highest ever. With the UK and other non-EU countries added, I believe that the number is even greater,” he said. The external affairs minister said that India’s large and growing middle-class population makes it obviously a preferred investment destination as well as a lucrative market for its trade partners. “When it comes to the green transition, clean energy and green transition are central to the India-EU Connectivity Partnership. Synergies have emerged in solar and wind energy, in green hydrogen, smart grids, sustainable urban transport, waste management and the circular economy,” he said. “But, to sustain this cooperation, the real ask is capacity building, clean technology transfer, alignment of standards and cooperation in critical materials. And here, let me say upfront that promoting green financing is the ignition for any long-term result-oriented outcome,” he added. Jaishankar said India is today one of the leading countries in climate change mitigation commitments and environmental protection. “Our low-carbon development strategy lays out the path to a carbon-neutral economy while taking into account specific development goals. We have the third biggest installed renewable energy capacity in the world,” he said. “Without stressing on our ambitious Nationally Determined Contributions at the UNFCCC, let me say that we will reach our goals even earlier,” he said. Looking ahead, he noted, India’s ambitious green hydrogen policy incentivises an indigenous ecosystem for local needs and exports. Jaishankar said electric vehicles will be the next big thing for a green transition of India’s urban landscape. “Green transition is also the core of our sustainability goals and it is enshrined in our agenda for the G20 presidency,” he said. Speaking about digital transformation, Jaishankar said 41 per cent of the world’s transactions actually happened in India last year. “India today can boast of more than a 100 unicorns, many of them in the tech sector. But, our digital success story goes beyond its tech unicorns; it touches the common person. We have pioneered digital public goods on a scale previously unimaginable,” he said. “Our innovative digital solutions for identification and banking (Aadhar) and digital transactions (UPI) are unprecedented in reducing transaction costs and turning digital and financial inclusivity into a reality, almost overnight for hundreds of millions of our citizens,” he said. “Our indigenous development of 5G and digital commerce will surely empower our citizens even further,” Jaishankar said. Foreign minister of Denmark Lars Løkke Rasmussen said that the Green Strategic Partnership between India and Europe is an important example for “all to follow”. Czech foreign minister Jan Lipavský stated that his country could contribute to India’s post pandemic recovery along with other Indo-Pacific countries, particularly in the areas of healthcare services, pharmaceuticals and telemedicine. Energy transition will be a key pillar of the partnership, Lipavský emphasised.
Source: Finance Express
India’s gross domestic product (GDP) for the October-December quarter moderated to 4.4 per cent, the data shared by the Ministry of Statistics and Programme Implementation showed on Tuesday. “GDP at Constant (2011-12) Prices in Q3 2022-23 is estimated at ₹40.19 lakh crore, as against ₹38.51 lakh crore in Q3 2021-22, showing a growth of 4.4 percent. GDP at Current Prices in Q3 2022-23 is estimated at ₹69.38 lakh crore, as against ₹62.39 lakh crore in Q3 2021-22, showing a growth of 11.2 percent,” a government press release stated. According to the data, the Indian economy is expected to grow at 7 per cent in FY23. It also stated that the economic growth for 2021-22 has been revised upwards to 9.1 per cent from 8.7 per cent earlier. The GDP had moderated to 6.3 per cent in the last quarter from 13.5 per cent in the first quarter of FY23 largely due to pandemic-related statistical distortions. The manufacturing sector contracted by 1.1 per cent over the previous quarter when it had contracted 3.6 per cent. Meanwhile, the farm sector recorded a growth of 3.7 per cent in Q3 as against 2.4 per cent in Q2. The mining sector surged to 3.7 per cent in Q3 as compared to a contraction of 0.4 per cent in the previous quarter. Electricity and construction sectors witnessed an increase of 8.2 per cent and 8.4 per cent respectively during Q3 as against 6 per cent and 5.8 per cent respectively in Q2. Contact-intensive sector like hotels and transport declined sharply to 9.7 per cent as against 15.6 per cent in Q2. Real estate grew at 5.8 per cent as compared to 7.1 per cent in Q2. Meanwhile, defence sector grew by 2 per cent in the October-December quarter as against 5.6 per cent in July-September quarter. Lower GDP growth can be attributed to aggressive rate hikes by the Reserve Bank ofIndia (RBI) in order to tame the high inflation levels in the country. In addition to these factors, the slowdown in exports and consumer demand has also contributed in bringing down the numbers. The dent in consumer demand can be linked with the bullish rate hikes by the RBI to bring down inflation in the past few months. Meanwhile, slowdown in external demand could be a consequence of the rate hikes by major central banks around the world. Earlier, a Reuters poll of economists had predicted a slowdown in India's economic growth for the third quarter due to a series of interest rate hikes. Even the government data had shown that India's economy was expected to slow further to 4.4 per cent in the current quarter, and across 2023-24 would Rahul Bajoria, an economist with Barclays India, said the economy would have grown at a tad lower at 5 per cent in FY23 Q3. "For FY24, we continue to expect a soft landing as tighter monetary conditions and still-elevated inflation take a toll. We continue to see growth moderating to 6 per cent and forecast steady GDP growth of 6.5 per cent in FY25,” Bajoria had said. Economists at the State Bank ofIndia had projected a GDP growth of 4.6 per cent for the December quarter, citing that as many as 30 high frequency indicators were not as robust as they were in the previous quarters. However, the projection was higher than the RBI's forecast of 4.4 per cent for the Q3 FY23.
Source: Economic times
Fashion holds a special place in the hearts of people of all age and backgrounds. Our routine life is defined by what we wear. Style is unique to every individual as some prefer simple yet elegant wear while others prefer a glamourous approach. When we choose our attire, we usually make our choices based on how it looks on us, what is the current fashion trend, the occasion, our budget etc etc. In the present age, people are disposing clothes faster to keep up with the latest fashion trends. This fast fashion trend is creating problems that are not visible prima facie. When we look deeper, we’ll realize that fast fashion is causing largescale environmental problems and negative social side effects. This mindset also creates ripple effects. The fabric used to make clothes affordable, is cheap but not environmentally friendly. The growth in pace of consumption, transportation and waste cycle is leading to increased carbon emissions. The textile and garment sector (globally) accounts for 6 to 8 percent of total carbon emissions, amounting to 1.7 billion tonnes of carbon dioxide emissions per year. The fast fashion industry typically relies on cheap labour in developing countries, contributing to human exploitation in the form of low wages, poor working conditions, limited workers’ rights, child labour, forced labour, etc. especially in countries where labour laws are weak and ignored. The fast fashion industry is often criticised for its lack of transparency and ethical standards, especially related to animal welfare, environmental sustainability and social responsibility. These companies use the “sustainable fashion” term to fool their customers, in buying their product over others. Some companies engage in greenwashing practices, by falsely advertising their products as sustainable and/or ecofriendly to appeal to environmentally conscious consumers and make them pay a premium, while not actually meeting the standards as promised. Similarly, misleading labels for green packaging may not to be widely recyclable. Many companies claim to use sustainable materials for their clothing but may still engage in unsustainable manufacturing practices, such as use of excessive water and energy to produce their products. These companies claim to be sustainable but provide little information about their sustainability efforts and supply chain. This brings us to the obvious question of, what is holding us from choosing slow fashion that is thoughtful and intentional in its approach? Consumer education is the need of the hour. They need to be made more aware of their choices. Consumer needs to check certificates like Global Organic Textile Standard (GOTS) or the Fair-Trade Certificate label, etc. which provide third party verification of a company’s sustainability efforts. Water sources and food chains are being polluted. One single cotton t-shirt requires 2700 litres of water while 5.9 trillion litres of water are used annually for dying fabric, according to the World Resources Institute. The dying and treatment process of textiles contributes 20 percent of industrial water pollution in the world and 8000 synthetic chemicals are used to turn raw materials into fabrics. Improper laundry practices and disposal of clothes that are not eco-friendly aggravate the problem further. In India the ministry of Textiles has signed a cooperation agreement between the United Nations Environment Programme and The Cotton Corporation of India to ensure circularity and mainstream sustainability in supply chain. Still there is a lot of room for improvement and transparency. Encouraging slow fashion will ease the burden in all aspects. A mindful approach will make people understand the value of things and not just the price. A qualitative approach which is rich, royal, authentic and environmentally friendly. Slow fashion often supports local designers and artisans, creating more jobs locally and builds a better connect between fashion industry and local communities. It enforces the motto “Vocal for Local!”. It also fulfils the purpose of feeling good about oneself, as it creates more unique as well as timeless designs, which allow people to express their personal style in a way that is not influenced by fast fashion or mass mentality. It reveals your true choice and personality. This is a wiser and authentic approach. It carries forward the original cultural and social practices of each place, offering the uniqueness of various backgrounds with a blend of technology to its advantage. The stories of earlier lifestyle and history of each place gets shared globally, thereby increasing awareness and understanding. Slow fashion items may cost more upfront, but they have a larger lifespan and save money in the long run directly and indirectly. It further promotes the idea of repairing and repurposing clothing rather than throwing it away, which helps reduce waste and prolong the life of garments. It emphasises the importance of creating and consuming fashion in a way that is environmentally responsible, socially just and economically viable. It’s high time we consider the environmental and social impact of our purchasing decisions. Celebrities and public figures should encourage slow fashion because the masses follow the celebs blindly without having an informed opinion while executing their choice. It’s important to prefer brands that use sustainable materials, ethical production practices and transparent supply chains. Many ethical fashion brands offer high-quality clothing that is both fashionable and environmentally conscious. By educating yourself, you can make more informed decisions about what you purchase and wear. This will help incorporate slow fashion into our lifestyle and help inculcate mindfulness over temporary satisfaction. It’s important to understand that sustainable fashion is to minimise the negative impact of fashion industry on the environment and society. Whereas, slow fashion enforces the attitude of minimalism and gratefulness, quality over quantity. It promotes a more conscious approach to consumption, production and disposal mechanisms. “Creating a false desire for fresh looks” is the mantra of fast fashion. It makes you believe, you want something desperately, which in reality, you can live without. Slow fashion is a more grounded approach, that has strong roots, and helps create a firm foundation to build upon.
Source: Times of India
Amit Agarwal, Group Chief Financial Officer, at the country’s largest branded textiles and apparel maker Raymond, is optimistic about India’s growth story, and is targeting high double-digit growth for the financial year 2023-24. For the nine months so far in this current fiscal 2022-23, Raymond’s consolidated revenue stood at Rs 6,145 crore, up 42% from the corresponding period of the last financial. The finance leader has plans to continue focusing on reducing debt to turn the company become completely debt free by 2025 through focused revenue growth, as well as effective working capital management.
Below are the edited excerpts from his interaction:
Q: What is your business outlook for our major branded textiles, branded apparel and garmenting business in the upcoming financial year FY24? sustainable revenue and profitability growth for the year ahead. Starting with our major branded textiles segment, Raymond is the largest shirting player in this category and opportunities relating to shirting businesses look extremely strong. Today a common man wears a Rs 2,000 shirt and the fabric that goes into it is not more than Rs 175-200 per metre. If the same shirt gets stitched for Rs 2,000, one may end up paying Rs 500- 600 for tailoring and get a custom-fit shirt. The shirting business has an extremely large value proposition. Also, the suiting category here has a phenomenal proposition. One would rarely find a wedding in India, where Raymond's suit is not stitched. The wedding space, in fact, is completely captured by Raymond. Similar growth prospects are likely for the branded apparel business. Raymond Ready to Wear (RRTW), Park Avenue, ColorPlus, Parx, and Ethnix by Raymond, all have strong brand recall presence. We launched Ethnix by Raymond last year only and are expecting its store count to reach 75 this year. We have plans to have a larger number of stores in the years ahead. We are bringing salience to each of these brands in order to expedite the casualisation as well as bring modern colours which attract the younger generation. The garments business is also shaping well. The whole world is moving towards China +1 philosophy, and in this India becomes one of the largest beneficiaries, and Raymond, therefore, gets a big positive opportunity. We plan to become the top three suit players in the world. We have plans to expand the capacity and are growing it at a phenomenal pace. Overall, our order book is full till July. We are not seeing any dip.
Q: What do growth prospects looking for in your other businesses including real estate, as well as engineering? Amit Agarwal: Real estate business has become a core business for us. We had started this business four years back and now built over a 250-member team. We have been successful to the extent that we have delivered projects two years ahead of the RERA deadline. For instance, we sold sell the first two projects launched more than 75% as of now. Even the launch we had last week, saw an overwhelming response. The engineering business also has strong growth prospects. Raymond's philosophy has been always to be number 1, 2, or 3. In terms of steel files, we have a 65% domestic share and 25% global capacity and as far as auto components are concerned, we work with the top three OEMs in the country and enjoy a 55-60% market share.
Q: From the optimism, you are reflecting and with the fact that you are already 40% up YoY on your consolidated revenues for the nine months this fiscal, is it fair to presume that Raymond is aiming at high double-digit growth next financial year too? Amit Agarwal: Absolutely. We are targeting higher double-digit growth. We foresee strong growth prospects. And our relationships with our customers, dealers, and franchise networks which have spanned over 80 years will help in our growth pursuit.
Q: What are your debt reduction plans for this year? Amit Agarwal: During the pandemic alone, we reduced Rs 400 crore fixed costs on a sustainable basis and reduced the working capital cycle to 50-60 days from 100 days previously. While all this was happening, we continued our focus on growth. This helped us achieve substantial record revenues and profitability. In the last four quarters, our total revenues crossed Rs 8,000 crore and EBITDA is close to Rs 1,250 crore, which shows the cash flow generation from working capital management helped reduce the debt. All our businesses, except lifestyle, are debt-free and cash-generating. Even in the lifestyle business, we are looking to become debt-free on the way ahead; the company is not having any large capex cycle to run, and plus we are investing in technology which will help us on that path.
Q: You seem quite bullish on your growth plans but what major risks do you foresee? Amit Agarwal: We have embarked upon a great journey. The execution could be a challenge but we have been able to induct the senior leadership teams including Vice Chairman at Group Level as well as respective CEOs for the businesses for P&L management, even that risk could be mitigated to a greater extent. Today it is being increasingly said it is not India's decade but India's century. The three-basic needs are roti, kapda and makaan and Raymond operates in two of the major essential needs. So, overall, as mentioned before we foresee phenomenal business opportunities in the times to come.
Source: The cfo.economictimes
The Director General of Foreign Trade (DGFT) has been urged by the Goa Chamber of Commerce and Industry (GCCI) to reopen its office in Goa. The DGFT was informed by the GCCI that since the closure of the DGFT office at St Inez in 2018, foreign trade and exports from Goa have been badly affected. This is the result of Goan businessmen being forced to travel to Mumbai to complete basic formalities. DGFT deputy director R Sampath and GCCI president Ralph de Sousa met recently, at a meeting convened by the Reserve Bank of India. During the meeting, Sousa told Sampath that the online portal of DGFT and the helpline numbers were a stumbling block for local exporters and entrepreneurs. “Sampath was sympathetic to the matter,” Sousa said, commenting on the meeting. While Sampath acknowledged the need for a dedicated office in Goa, he informed GCCI that a final decision on restarting the DGFT office in Goa has yet to be taken. To optimise human resources and bring in online services, DGFT closed its office in 2018. Due to procedural issues, consignments of local entrepreneurs and exporters were often stuck at ports and customs warehouses. Repeated dissatisfaction has been expressed by industrialists with the services provided by the DGFT office in Mumbai, which has jurisdiction over Goa. “For small matters, Goan businessmen had to approach the Mumbai office physically, wasting valuable time and effort. GCCI had previously raised concern that exports from Goa were badly affected due to poor online services. The helpline number given was also not being attended to,” said Sousa. If Goa has to play a role in meeting the goal of a US $ 5 trillion economy, the GCCI president said, foreign exports need to be encouraged, for which a dedicated DGFT office is required in the state. The GCCI has aldo written to the state and Union governments in this regard.
Source: Apparel Resources
Chief economic adviser (CEA) V Anantha Nageswaran on Tuesday said India’s gross domestic product (GDP) can still grow by 7% in the current financial year, despite the growth slowing down in the third quarter of the year. “The trends that we have in terms of high-frequency data for 2022-23 for the fourth quarter do indicate that achieving that assumed growth rate (5.1%) in Q4 is well within the realm of possibility and therefore the 7% real GDP growth estimate for 2022-23 is very realistic,” Nageswaran said. The GDP growth of 5.1% is possible in the January-March quarter, he added India’s economy recorded an annual growth of 4.4% in October-December 2022, down from 6.3% in July-September 2022. He said there are enough signs that manufacturing is in good health, but India has to be prepared to deal with El Nino and weather-related uncertainties. The manufacturing sector‘s output, as per the gross value added in Q3FY23, contracted 1.1% compared with a growth of 1.3% in the year-ago period. Nageswaran, however, said “manufacturing sector is in good health. Core sector data and high-frequency indicators show continued growth momentum”. policymakers need to be ready with supply-side and monetary policy measures to tackle inflation uncertainties. “There has been a slight uptick in the inflation data for January and RBI has also maintained its forecast that inflation will come down gradually. We do have some uncertainty related to the monsoon because of El Nino activity. So, we should be ready with supply-side and monetary policy measures in the next financial year,” Nageswaran said. The finance ministry’s Economic Survey has projected economic growth to be 6.5% in FY24. Downside risks dominate in relation to the 6.5% growth forecast for the next fiscal, he said. Also read: Adani Group’s debt concern may be overstated: SES “There are upside risks as well. And that comes from let’s say, the limited impact of crude oil prices. Maybe in the second half of the new financial year, monetary policy may come to a halt in terms of tightening in the developed world and may even reverse in the second half of the financial year, leading to improvement in capital inflows,” the CEA said.
Source: Financial Express
INTERNATIONAL
Start for an EU-wide collaborative project: Under the leadership of the French company Fairbrics Sas, 17 project partners from seven European countries are coming together. The common goal is to produce end products from polyester in a closed cycle using industrial carbon dioxide (CO2) emissions and to bring them to market maturity. The DITF produces synthetic fibers from plastics of non-fossil origin. In order to achieve the European climate targets, the aim is to achieve a long-term and sustainable reduction in greenhouse gases. To achieve this, CO2 emissions must be reduced in the energy sector, in industry, and in households and small consumers. This is the starting point for the EU-wide collaborative project “Threading CO2,” which is funded under the EU’s Horizon funding program. The project will bring products made of environmentally friendly polyester (PET) to market maturity. The technological basis has been developed by Fairbrics SAS from France. It involves the production of monoethylene glycol (MEG), the starting material for the manufacture of polyester, using CO2 extracted from industrial waste gases. This is a completely new approach, because in the classic process fossil raw materials are consumed for the production of polyester. In this way, not only is the release of CO2 into the atmosphere directly prevented. The CO2 also contributes to increased added value by being incorporated into the production of high-quality textile products. The core of the project is the technological upscaling of the new MEG synthesis process in pilot plants, paving the way for industrial production. In the EU joint project, 17 project partners will contribute their special expertise and further develop the process technologically and make it suitable for industrial use. Within the consortium, DITF Denkendorf will take on the task of accompanying the upscaling and taking the step ‘from molecule to material’: From the sustainably produced monoethylene glycol, polyesters are synthesized in our own laboratories, spun into fibers, textured and further processed. The aim is to test whether the quality of the polyester and its spinnability and processability in the textile value chain are comparable with conventional polyester. The project partners Faurecia and Les Tissages de Charlieu process the fibers and textiles into car seats and clothing so that the quality can also be assessed in the end product. The subsequent recyclability of the products will also be tested at the DITF. In addition, a security marking is to be developed for this CO2-based polyester to protect it from product piracy. The scientists at the DITF have many years of experience in polymer production and processing into textiles. This enables them to specifically impart a specific property profile to plastics and the synthetic fibers spun from them. Through their work on the collaborative project, they are helping to produce fiber-based materials from the sustainably and environmentally friendly produced MEG that perfectly meet the requirements of end users.
Source: Textile World
The amount of used fabric exported from the EU has tripled over the last two decades to nearly 1.7 million tonnes in 2019, according to a report published by the European Environment Agency (EEA). The report also states that it is ‘highly uncertain’ that the used fabrics are destined for recycling, reuse or landfill. Analysing UN Comtrade data between 2000 and 2019, the report found a growing shift towards consolidation and specialisation on both sides of the used textile trade. Five countries accounted for 75 per cent of the textile waste exports out of the EU with the top 10 receiving countries – mainly in Africa and Asia – imported 64 per cent of total volume. How these textiles are sorted, reused, disposed or recycled, however, remains largely opaque and anecdotal. Clothing and textiles exported to Africa are known to be reused and sold domestically, whereas Asia – now receiving 41 per cent of exports – has dedicated sorting facilities. In these facilities, fabric is often downcycled for industrial rags or re-exported globally. Textiles considered unfit for reuse are destined for landfill in both regions. This report comes on the heels of the EU’s sustainable and circular textiles strategy published in March last year, which also noted the limitations of current textile sorting and classifications and called for improved transparency in global used-textile trade. The positive environmental and social impact of clothing donations and recycling should be questioned, highlighted the report noting the uncertain fate of used textiles. “The avoided environmental impacts related to reuse depend on whether this reuse actually replaces new textile or fibre production,” it said. “In other words, if used textiles exported from the EU are of too low quality to be reused, are not reused for very long or do not replace new clothing purchases, they may not really replace new production or benefit the environment,” the report added.
Source: Apparel Resources
While EuRIC appreciates that exports are being put under the spotlight, it also calls for caution on the EU’s interpretation of used textile exports. As the briefing highlights, there is currently no distinction between textile waste and second-hand textiles in EU product classifications used for export declarations and statistical declarations for trade. This is a significant shortcoming that may lead to vague or inaccurate statistics on exports of ‘’used clothing’’. “We fully support the EU’s intention to develop specific EU criteria to distinguish between waste and second-hand textiles and are encouraged to see this acknowledged in the EEA briefing. In the absence of this distinction, exports of sorted reusable textiles are understood to be equivalent to exports of unsorted textile waste. This often leads to misinterpretations,” noted Mariska Boer, President of the EuRIC textile branch. ‘’Our industry calls on the European Commission to urgently establish a distinction. Additionally, we support the introduction of measures, including fiscal initiatives, to strengthen the market for textile reuse and scale up recycling in the EU.” According to a recent study commissioned by EuRIC, producing new textiles results in 70 times more environmental damage compared to global reuse. For instance, each garment reused saves 3 kg of CO2, meaning that global or local reuse is still the best option for the environment in terms of the treatment of collected textile waste. However, to enable a sustainable circular economy for textiles, it is of utmost importance that extensively sorted textiles are exported outside the EU for reuse and that European and global recycling capacities are scaled up. Michael
Source: The recycling-magazine.com
The ready-made garment industry of Bangladesh is strongly focusing on transition towards a circular economy to pursue growth in a more sustainable and stay competitive in the long run, said Faruque Hassan, President of BGMEA. Switching to circular economy practices is a huge task that requires collective efforts from all stakeholders including the government, policy makers, development partners, brands, and suppliers, he said. “The circular economy can build a pathway for greater environmental sustainability coupled with economic growth,” he observed. Faruque Hassan made the remarks when speaking at a stakeholders’ roundtable on a topic titled “SWITCH to circular economy for textile value chain, Bangladesh” held in Dhaka on February 28. SWITCH to Circular Economy Value Chains (SWITCH2CE) is an international development project cofunded by the European Union and the Government of Finland, which aims to support enterprises in the textiles and garments, plastic packaging, and ICT value chains to adopt the circular economy practices. Ambassador and Head of Delegation of the European Union to Bangladesh Charles Whiteley attended the event as chief guest. BGMEA Vice President Miran Ali, Director Barrister Vidiya Amrit Khan, President of Nordic Chamber of Commerce and Industry in Bangladesh (NCCI) Tahrin Aman, UNIDO Representative Zaki Uz Zaman, Head of Material Innovation and Strategy at H&M Gagan Bansal, Chatham House representative Patrick Schroeder, and DG-WTO cell and Additional Secretary at the Ministry of Commerce Hafizur Rahman also spoke at the roundtable which was moderated by Mark Draeck, CTA, UNIDO. In his speech as special guest, BGMEA President Faruque Hassan said the textile industry is considered one of the very polluting and resource-heavy industries and therefore it is imperative to reduce the negative environmental impacts of the industry. He said, “While we move towards a circular economy, the skills and efficiencies of our industries have to continue to improve, to be competitive in the global marketplace.” “The RMG industry of Bangladesh has been proactively addressing the global demand for sustainable and emission-free products. So far Bangladesh has the highest number of USGBC Certified LEED green garment factories in the world, with 192 LEED Green Factories of which 67 are platinum rated, and with 550+ factories in the process of being certified. This number is increasing,” he said. BGMEA, Global Fashion Agenda (GFA), Reverse Resources, and P4G have already partnered in an initiative "Circular Fashion Partnership" that aims to achieve a long-term, scalable transition to a circular fashion system, he said. Over 30 renowned fashion brands, manufacturers and recyclers are collaborating in the new initiative to capture and reuse textile waste in Bangladesh.
Source: The unb.com.bd
With the industrial sector in Saudi Arabia going through massive developments, the Kingdom’s textiles and fabrics industries have recorded over SR4.1 billion ($1 billion) worth of investment, revealed the CEO of the Saudi Authority for Industrial Cities and Technology Zones. Majed Al-Argoubi said this funding has been distributed over 125 industrial contracts in 19 industrial cities, covering a total area of more than one million sq. m, reported Saudi Press Agency. Also known as MODON, the government body is responsible for the development of fully integrated service industrial lands to the highest standards, and the agency currently oversees 35 existing and under development industrial cities in various regions of the Kingdom, in addition to supervising private industrial cities. According to Al-Argoubi, the textiles and men's supplies sector is experiencing high growth in the Kingdom. As most of its raw materials are sourced from Saudi Arabia, he said this makes it an attractive sector for investments. Al-Argoubi added that the industrial sector in the Kingdom is going through remarkable developments, thanks to the support and facilitation provided by the Saudi leadership to invest in value-added projects. The CEO shared these details at the inauguration of the second edition of the Men's Fabrics and Accessories Exhibition at the Riyadh International Convention and Exhibition Center. Sponsored by MODON, the five-day event aims to strengthen the industry in this sector, which has been witnessing significant growth in recent years. Currently, MODON's developed industrial lands exceed 1,988 million sq. m. The existing industrial cities include 3,474 productive factories, in addition to 6,190 industrial, service and logistic contracts, and more than 435,000 employees. MODON has also prepared advanced infrastructure, supporting logistical services, and several ready-made products and innovative solutions in all regions across the Kingdom and different areas to build factories in various sectors. Earlier this month, MODON revealed that it will establish, develop and operate 14 warehouses in Jeddah 1st Industrial City. The new warehouses will be based on smart automated systems to provide quick and temporary logistical solutions to support industrialists and entrepreneurs as well as stimulate investment in the retail sector. The project involves the construction of fully digital and automated warehouses that do not need human intervention, using the latest technology and equipment that provides access to storage units via a smartphone app. The warehouses will be operated based on the public-private partnership model, which is expected to enhance quality standards and operational efficiency of services and products and stimulate investment.
Source: The Arab news
The industrial sector in Pakistan is preparing for more job cuts and a sharp decline in production. As a result of the economic uncertainty that has gripped Pakistan, more than 1 million informal workers in the textile sector are likely to be impacted, National Trade Union Federation Pakistan (NTUF) Secretary General Nasir Mansoor said. Mansoor was quoted as saying by Pakistani newspaper The News International, “At least 1 million informal workers– mostly from the textile sector– are likely to lose their jobs.” Informal workers in Pakistan will be left without access to any social welfare scheme or severance packages given their employment status, he further stated. Calling this a “bleak situation”, Mansoor said that since companies are bound to offer different perks to employees given special laws for workers, many of them carry out hiring procedures via third-party contracts. Due to this, all workers are informal, and firing them becomes convenient since they cannot go to a court of law. Mansoor furthermore mentioned that existing workers will be expected to clock in more hours to compensate for staff shortages and increasing operational costs. He said, “Most companies ask informal workers to come in for 15 days in a month. And while they submit a month’s worth of work, they are paid for the 15 days they come to the office.” Another official from a big Pakistani conglomerate said that while fears of layoffs are justified, most firms are trying to retain employees and utilise their expertise for all types of work. The official told the news on the condition of anonymity, “Industries are opting for a hiring freeze on a temporary basis, and things will improve as soon as the country’s foreign exchange reserves increase.” He further added that the Pakistani industry is struggling due to the 2022 floods and delays in the opening of letters of credit. Mansoor noted that around 45 per cent of the cotton crop has been washed away due to the 2022 floods, which led to massive devastation in India’s western neighbour. Mansoor is not the only one to attribute the industrial slowdown to the delay in opening the letters of credit. Federation of Pakistan Chambers of Commerce and Industry (FPCCI) head Irfan Iqbal Sheikh noted, “Many companies have already suspended their operations because they do not have resources. The next three to four months are going to be tough for the economy.” He added containers with essential raw materials are stuck at ports for weeks and that lack of clarity from the Shehbaz Sharif government regarding import restrictions is further likely to worsen Pakistan’s economic situation. Going ahead, 25,000-30,000 workers in the country’s automotive sectors have lost their jobs due to the drop in annual sales, as per the Pakistan Association of Automotive Parts and Accessories Manufacturers. A management-level official associated with a Pakistan-based investment company said that sectors that are import dependent such as autos and automobiles are more likely to get affected by economic uncertainty. He further said the country’s banking sector showed improvement on the back of rising interest rates. The official further sounded a warning of caution and said more companies are expected to default since increasing interest rates leads to demand compression.
Source: Business Today
The apparel and textile industry in Sri Lanka has been an integral piece of the country's economy, making for a substantial percentage of the country's GDP and employment. However, the sector has encountered a number of challenges in recent years, spanning from international competition to global economic downturns. Since its inception in the 1960s, the Sri Lankan apparel and textile business has gone a long way. The industry has progressed from the production of basic cotton textiles to high-end apparel, intimates, and sportswear. A highly skilled labour force, technical developments, and favourable Government policies had contributed to the industry's success, mainly in the past. Preferential trade deals with the European Union and the United States have also aided the industry's exports to these areas. Despite these developments, the apparel and textile business has encountered a number of challenges in recent years. The intense competition from other producing nations, particularly China, India, Bangladesh, and Vietnam, is one of the main obstacles. These nations have a substantial cost edge over Sri Lanka, owing mainly to reduced labour costs, and have taken a significant portion of the global textile market. For example, China alone accounts for more than 40% of worldwide textile and apparel shipments, while Sri Lanka accounts for less than 1%. Several seasoned players exist in the Sri Lankan apparel and textile business, spanning from small-scale manufacturers to big international corporations. Brandix, MAS Holdings, Hirdaramani Group, and Teejay Lanka are among the industry's main participants. These businesses have made significant investments in technology, creativity, and sustainability, allowing them to stay successful in the global market. However, the industry also includes a number of tiny and medium-sized businesses that serve specialty markets and provide specialised goods. Overall, the apparel and textile industry in Sri Lanka is competitive, with companies continuously innovating and differentiating themselves to remain ahead of the competition, albeit not in price. Several macroeconomic variables affect the industry's competitiveness and revenue. The exchange rate is one such element that influences the cost of manufacturing and the price competitiveness of Sri Lankan textiles in the worldwide market. A weaker currency makes shipments less expensive, which can help increase demand while on the other hand, can raise the cost of raw materials and equipment imports, reducing the industry's revenue. The industry employs over 300,000 people and is a significant employer in the nation. Any changes in work can have serious societal and economic consequences. The profitability and growth of the industry are inextricably linked to employment, with any major changes in the industry possibly affecting the country's total employment rate. As a result, the Government and industry stakeholders must collaborate to ensure that the industry stays competitive, creates new job possibilities, and keeps current jobs. This can be accomplished by investing in education and training programs, supporting creativity and business, and advocating for advantageous labour laws that balance the requirements of companies and workers. To handle these issues, the Sri Lankan textile industry must take a number of steps in order to stay competitive and flourish in the global market. One of the most important steps is to concentrate on product differentiation and invention. The industry must produce new goods and designs to meet shifting customer requirements and carve out a niche for Sri Lankan textiles in the global market. The industry can also concentrate on environmentally friendly and sustainable textiles, which are in high demand among customers and can help Sri Lanka distinguish itself from other textile-producing nations. To increase productivity and lower labour expenses, the Sri Lankan textile sector must take riskier bets and engage in technology and automation. New technologies such as 3D printing, robotics, and artificial intelligence can help the industry better product creation, reduce waste, and improve quality, as they have done so in developed economies. Automation can also assist the industry in addressing the workforce shortage problem while improving productivity and revenue.
Source: The ft.lk/ft
