INTERNATIONAL
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Terming Bengaluru a "knowledge hub", Union Finance Minister Nirmala Sitharaman said that the state is setting the pace for new India, which is going to be knowledge-based India. The Union minister was campaigning for the BJP in the upcoming elections at Brigade Gateway in Malleswaram on Thursday. She also sought support for Loksabha 2024 elections. "Not knowledge in the sense of "Advaitha wisdom," but its agility to adapt to technological changes was Sitharaman’s definition of "Knowledge" when talking about Bengaluru as a knowledge hub. She once again sought support for the BJP and cautioned against political instability in the state and said it won’t help the state and instead asked people to ensure stability in the state as much as stability in the centre. "You need to stand out and say I am doing this for Karnataka because I want to achieve.. By 2047 we still should not be a developing country," she outlined the goal. While Delhi is the political Capital, and Mumbai the commercial capital, she said the financial headquarters of the special financial zone is coming up in Gandhinagar (Gujarat) in Gift City. And Bengaluru, a knowledge city will help India move forward and give direction. She hinted at the BJP manifesto being announced soon and "it’s no longer I will improve water supply. You are now looking at lifting Bengaluru to a different level", she said.
Minister rebukes attempts to pit people against each other The Union finance minister recalled an instance she encountered on the previous day when someone made a comment about looking up to PM Modi for Karnataka’s future, and a reply came -- "Could you not get a Kannadiga? You want Modi?" Expressing astonishment at the statement, she said, "What’s wrong if you refer to the PM who equally attends to every state as much as Karnataka to say please let’s look at the leadership of PM Modi and decide for the future of Karnataka. What’s wrong with that? To invoke regional sentiments and kindle those emotions as though one is pitted against the others are tactics that we should not pay heed to." While the "Miracle of Bengaluru" is planned to be taken to Mangaluru, Mysuru, Gulbarga and other places, she said, the government is making sure that fertilizer capacity in Mangaluru is increased, and the port capacity is also being increased.
Finance minister hints at AI Centre of Excellence in Bengaluru In the 2023-24 budget, Sitaraman announced that three Centres of Excellence for Artificial Intelligence will be established at top educational institutions to develop cutting-edge AI technology. While the name of the institutes was not announced, the minister hinted at one being in IISc in Bengaluru. “I am not naming Bengaluru at this time because the budget did not name any centres. We said three AI COEs, but whoever does not know the IISc is here and whoever does not know that AI is a big thing everywhere inclusive of Bengaluru...” she said. While Bengaluru is often compared to the San Franciso bay area, the land of silicon valley, Sitaraman went a step further to state, “We are not anymore the bay area, we are the lakeside. We decide,” to a round of applause from the audience seated by the ‘lakeside’ at Brigade Gateway, where she addressed voters.
"From upholstery to car airbags at the Mega industrial park" Leveraging on the variety of cotton in the nearby areas, Sitaraman explained that the mega industrial textile park that has been announced in Kalaburagi will be producing products ranging from upholstery and fabrics for multistarred hotels, to materials required for airbags in cars. While in India, she said, each car has two airbags, in many parts of the world it is five airbags a car, and the market is huge.
Source: Times of India
For the past three years, Hyderabad-based Sahaja Aharam Producer Company has been trying to export farm produce such as rice, pulses, and spices, but it has encountered several challenges. The challenges include a lack of access to capital and lack of awareness regarding government schemes and the high cost of certification for exports. “Being a small farmer association, getting funds from anywhere takes a lot of time. We have to depend on banks or NBFCs for loans,” says Prasanna T P, CEO of Sahaja Aharam, a federation of 20 farmer-producer organisations registered under the Companies Act of 2013. “A lot of handholding is required at the district level when it comes to government schemes. Information regarding them is hard to get,” he adds. But Prasanna thinks all this may change with Foreign Trade Policy 2023, which aims to strengthen exports from districts. He hopes the government will start spreading awareness—at the district level—about the various funding schemes that MSMEs (micro, small and medium enterprises) can avail themselves of and benefit from. With the new Foreign Trade Policy, which was announced on March 31 this year, the Government of India attempts to address the issues faced by MSMEs such as Sahaja Aharam and help them access the global market, so that they can contribute significantly to the nation’s exports. Districts as Export Hubs Under the new policy, the government plans to aid homegrown businesses by taking forward the Districts as Export Hubs (DEH) initiative and uplifting the export value of districts across the country. The Department of Commerce had launched the DEH initiative in 2019, with the government acknowledging that each district has a unique potential to become an export hub. Through this initiative, which has now come under the focus of the new Foreign Trade Policy, the Government of India is collaborating with state governments to harness the potential of districts and transform them into export hubs. The new policy places emphasis on the execution strategy of the DEH initiative, as the government strives to increase MSMEs' export contributions and boost total exports to $2 trillion by 2030. Decentralising export promotion The most significant aspect of the DEH initiative is the creation of institutional mechanisms at the district level—to decentralise export promotion. This will ensure that export action plans are developed at the district level and then moved up to the state or Centre for approval, rather than the other way around. Before the launch of the DEH initiative, export promotion was handled solely by the central government. There was no mechanism to actively involve the states and districts in the decision-making process regarding the export of local products and services. According to Vinod Kumar, President, India SME Forum, decentralising export promotion and giving states the freedom to build institutional processes at both the state and the district levels will allow them to strategise with a more nuanced approach. It means that districts will have the power to develop action plans and determine where to invest, he says. Towards this end, District Export Promotion Committees (DEPC) are being set up, headed by the district collector, district magistrate, or chief development officer. The committees will be co-chaired by DGFT (Directorate General of Foreign Trade) regional authorities. They will also include key district officers of different industries such as agriculture, horticulture, livestock, fisheries, handicraft, and handloom. The DEPCs will be in charge of developing and acting on district-wide export action plans. The export action plan will identify export-worthy products, the production requirements such as machine setup, and the problems faced by the industry. It will also define the skills and infrastructure required for production. Once the plans are in place, DGFT's regional authorities will work with the administration at the district level and discuss the draft district export action plan. On the basis of inputs received from all stakeholders, these plans are adopted by the DEPCs for execution. “Up until now there was no government body at the ground level, but now the government is trying to bring in a micro-focus on districts,” says Haresh Calcuttawala, Co-founder, TreZix, which is digitising and automating the export-import processes for SMEs. Testing labs and other plans As part of the DEH initiative, the government also plans to set up testing labs in each district so that products do not have to be sent to other cities for testing. “Testing will be an essential step in determining whether the products meet global standards, and hence establishing these labs in each district will greatly reduce the cost for producers,” says Kumar of India SME Forum. In addition, DGFT plans to create an online monitoring platform where DGFT’s regional authorities will be able to share all information regarding the products and services they are working on as well as the progress made in the export action plan. There are also plans to prioritise the convergence of multiple schemes so that districts can access the central and state government funds for infrastructure development and skill/capacity building. “The step is a good one, but the government would need to bring awareness at the ground level; only then can we benefit from it,” says Prasanna of Sahaja Aharam. District-specific needs highlighted in the district export action plan will also receive priority under the Department of Commerce programmes, such as Niryat Bandhu and Market Access Initiative. “The administrative authorities at the district level will now have the power to allocate funds and resources (from national and state schemes). How fast we are able to do it is what matters,” says Kumar. He adds that states such as Maharashtra, West Bengal, Uttar Pradesh, and Madhya Pradesh are already focusing on building an export ecosystem at the grassroot level and taking the DEH initiative forward. Product promotion from various districts As part of the DEH initiative, district-level promotional events, such as buyer-seller meets, trade fairs, and workshops, will be held to considerably boost the discoverability of products from every corner of the country. Kapil Goel, Founder, Exotic India, says, when the government steps in, products get more publicity and demand is thus created. Exotic India collaborates with more than 10,000 artisans from around India to bring their products to a global audience through its ecommerce website. “We benefitted from the One District One Product (ODOP) initiative. We are likely to benefit from the DEH initiative as well, “ says Goel. The ODOP initiative was launched in 2018 by the Uttar Pradesh government to identify, promote, and brand one export-worthy product from each district. Due to its success, it was later adopted by the central government and merged with the DEH initiative in December last year. Through the ODOP initiative, Exotic India was able to discover artisans making brass handicrafts from Moradabad and onboard them on its website. Goel envisages something similar through the DEH initiative as well. “It will help integrate the country into one, and the market size for different products will also increase,” he says. According to Kumar, the sectors most likely to benefit from DEH are leather, agriculture and food processing, textiles, and handicrafts, which have a huge potential to create jobs. There is also a big demand for textiles and handicrafts globally. Suman Sonthalia, the founder of Sahibabad-based Aakriti Art Creations, which sells handicraft, handcrafted furniture, and home décor products, has not prioritised exports till now. She currently exports 25% of her products to countries such as Italy, Malaysia, and Saudi Arabia. But now, with the help of the DEH initiative, she intends to expand to more international markets in Europe and the Middle East. She hopes for better discoverability of her products with the DEH initiative. “Till now people have contacted me themselves because of the uniqueness of my product. I hope the government helps me when it comes to promoting my product in the global market,” she says. Other initiatives to aid MSMEs Focus on logistics Under Foreign Trade Policy 2023, the government plans to focus on eliminating constraints in infrastructure and logistics, which are hindering exports. DGFT's regional authorities will be responsible for identifying logistical requirements in districts across every stage of the value chain—from the producer to the export destination. The focus will be on developing logistics, export connectivity, and other export-oriented ecosystems at the district level. Consignment value The new trade policy proposes to increase the per-consignment value limit for exports made using courier services, from Rs 5 lakh to Rs 10 lakh Goel of Exotic India believes this will benefit local artists and artisans and boost the ecommerce sector. Collaboration with foreign post offices This is expected to enhance cross-border ecommerce and help MSMEs in the hinterland and land-locked regions reach worldwide markets. Under this collaboration, an exporter can drop off shipments at any nearby post office. The Department of Post will then transport the export parcels to a foreign post office for customs clearance. “This will enable merchants to export from places that are traditionally not served by logistical chains,” says Gaurav Mirchandani, Founder of Indore-based SM Toys.
Source: The Yourstory.com
Many of the largest textile firms in the world are failing to link executive pay to environmental, social, and governance (ESG) performance, a crucial factor in credible action, according to new research by financial think tank Planet Tracker. Over half of these businesses, including Anta Sports, Gap, Levi Strauss, Nordstrom, Under Armour, and Victoria’s Secret, lack any connection between compensation and ESG measures, according to Planet Tracker’s analysis of 30 prominent textile brands. According to Planet Tracker, just 7 percent of links have clear annual objectives and reporting, which are essential components of successful compensation programmes. The study reveals that although the textile industry is responsible for 10% of global emissions, only 57% of textile companies relate CEO compensation to sustainability practises. Additionally, the top 20 equity investors in these businesses have a combined USD 278 billion in their possession. Investors are urged by Planet Tracker to expand compensation performance standards beyond merely financial measurements and incorporate sustainability-related criteria. The study also reveals that the majority of organisations that do link compensation to ESG performance use inadequate strategies. Companies should establish precise, measurable annual targets connected to sustainability progress in order to guarantee that compensation programmes produce significant change. Only two businesses, Adidas and Puma, have CEO compensation programmes with specific yearly sustainability-related objectives and reporting. Richard Wielechowski, Head of the Textiles Programme at Planet Tracker, comments, “Every textile player we analyzed is publicly committed to embedding sustainability into their operations and growth, yet these pledges are mere window dressing if the leaders of these companies are not held accountable for delivering sustainability goals.” The report urges investors to support meaningful performance-linked pay that is linked to sustainability by making sure that the pay is material, that the targets and results are independently verified, that the targets are quantitative, that they are annual as well as long-term, that the sustainability targets are separate from the financial targets, and that the accomplishments are transparent.
Source: Apparel resources
Even as i show up early for our 10 am appointment on a Thursday, Vardhman Textiles Chairman S.P. Oswal is in his first meeting of the day. In about 15 minutes, I am shown into a room which could be mistaken for a meditation chamber. Ludhiana’s golden winter sunrays streaming through the all-glass windows illuminate titles on the Indian philosopher Sri Aurobindo. Seated on one of the grey sofas lining the three walls of the room is the bespectacled second-generation businessman. The octogenarian’s slight frame, on which his grey woollen suit hangs a tad loosely, belies the vertically integrated billion-dollar textile giant he has built the company into since joining the family business as his uncle’s reportee in 1966. “I don’t like to beg from bankers,” says Oswal softly but firmly, harking back to a bloody incident in Vardhman’s history—which shaped some key decisions at the company. On April 14, 1982, a factory manager carries a pistol unbeknownst to Oswal; a skirmish and a gunshot kills a factory worker; violence leaves 72 people injured and rioters try to attack Oswal in his office. “I prayed to The Mother, ‘What can I do now?’ Instantly, (it occurred to me) to tell them, ‘You want to kill me? I have no arms. You can kill me.’” The unexpectedness of it calmed down the mob and helped start peace talks, he says with a laugh. Oswal says that was the only year his cash flow was tight because of the long lockout following the episode, and he had to request the bank to defer the repayment of one loan instalment. “I had to wait outside the manager’s office for three hours. I came out with tears in my eyes that God may not show me this day again…but after that my balance sheet has always been strong and we have carried on the growth.” Despite the Rs 1,980-crore debt on its balance sheet as of FY22, analysts tracking the firm see its net debt to equity ratio of 0.25 as a big positive, especially in an asset-heavy business. “Vardhman is among the few textile companies that have been able to maintain a debt-equity ratio below one despite continuous capacity addition,” says a stock update report by ICICI Securities from November 2022 Oswal says 1982 was a turning point for him both personally and professionally. Already an avid reader of Sri Aurobindo’s writings, every year for the next 32 years, he visited the ashram in Puducherry. And the company decided to set up a Maanav Vikas Kendra at every factory to train workers. His 28,000 employees are a cornerstone of Vardhman’s success, says Oswal, the winner in the Textiles & Apparel category of the BT-PwC India’s Best CEOs ranking. In 1984, the violence that followed Operation Blue Star gave Vardhman a new direction—diversification into Madhya Pradesh and Himachal Pradesh to ensure more than 50 per cent of its revenue comes from outside Punjab. Today, it has 15 factories across Punjab, Himachal Pradesh, Madhya Pradesh, Gujarat, Tamil Nadu and Andhra Pradesh powering its diversified business in yarn, fabric, garments, fibre and sewing thread. “A lot of textile firms expand fast and their balance sheets run faster than their revenues. But Vardhman has been prudent, ensuring that they expand only after their capacity gets significantly absorbed by their sales volumes,” says ICICI Securities Analyst Bharat Chhoda. Take its yarn business, for instance. Founded with just 6,000 spindles in 1965, it is the country’s largest yarn spinner today with 1.2 million spindles producing 670 tonnes of plain and dyed cotton, polyester, acrylic, viscose, specialised fibres and blended yarns per day. Yet, it utilised more than 90 per cent of its yarn capacity even when the domestic spinning industry was operating at 50 per cent last year due to uncharacteristically high cotton prices, says the ICICI Securities report Apart from the diverse product mix, Chhoda says its high capacity utilisation is also a result of good long-term client relationships which ensure orders don’t dry up in tough times. Its roster includes international and Indian brands such as M&S, Gap, H&M, Tommy Hilfiger, Calvin Klein, Superdry, Levi’s, Puma, Arvind, Pantaloons and Raymond for its yarns and fabric businesses. The 81-year-old Chairman’s tenure comes to an end in 2024. No stranger to a family feud having seen both his brothers splinter away from the main Vardhman business, he says, “I can sit back with satisfaction that there will be no dispute I can foresee in the time to come.” His only daughter Suchita Oswal Jain is the Vice Chairperson of Vardhman Textiles. It is for the future generations to explore growth opportunities now, he says. While yarn accounts for two-thirds of its revenues, the fabrics segment—which accounts for the rest—is the company’s growth engine, says Oswal. This is where Oswal sees immense potential for both his company and the country.
Source: Business Today
Rajasthan has witnessed a significant increase in its export of goods till February 2023, with a growth rate of 10.04 per cent as compared to the same period of 2022. Chairman of the Rajasthan Export Promotion Council (REPC) and Rajasthan Small Industries Corporation Limited (RAJ-SICO) Rajiv Arora said at a meeting that the state’s textiles, agro-food products, gems and jewellery, and engineering goods have been the major contributors to this growth. The meeting on ‘Export Growth and Future Strategy of Rajasthan’ was organised by the REPC here yesterday to discuss and invite suggestions from exporters to increase exports from Rajasthan. Arora said more than 31 lakh people in the state have been employed in export units and allied services. The chairman also highlighted the efforts made by the state government under the initiative ‘Mission Niryatak Bano’ to provide necessary process and documentation training to over 9,000 entrepreneurs, artisans, and handicrafts men from different districts to make them exporters.
Source: The Statesman
Imagine “silk” sarees made from plastic waste collected from the ocean and recycling centres. This is what Malaysian company A.J. Adhya Vegan Textiles does. It manufactures eco-friendly sarees from plastic waste products, thus making them environmentally sustainable. The company’s founder Ashvinaa Jeyabalan said she started the venture when she became a vegan in 2020 after reading a lot about silk manufacturing. “It was disheartening to learn that the production of a beautiful fabric like silk causes the loss of millions of silkworms and harms our ecosystem,” she told theSun. “People are also not aware that human and child traffickers are involved in the production of silk. Indians make up almost 20% of the world’s population and are the highest consumers of silk textiles,” she added. “I wanted to educate people and encourage them to shift to something else that is less harmful to the environment and silkworms, while indirectly fighting against human trafficking.” Ashvinaa created the vegan silk saree with the help of recycling centres and factories, and the saree weaving industry in Gujarat, India. “My aim is not on making profits but to encourage other textile manufacturers to join this cruelty-free campaign by going vegan and not using silk in their process, thus saving millions of silkworms,” she said. According to Ashvinaa, the process of manufacturing eco-friendly sarees starts from the collection of plastic waste from the oceans and recycling factories in Gujarat. “These plastics are broken down into chips and melted to form threads and fibres, which are then sent to a factory to be processed into yarn and thereafter to weavers to make them into sarees. “We are not the first to create fabric from plastic as others have been making T-shirts from recycled plastic bottles for quite some time. However, we are possibly the first to make silk-like sarees from plastic. She added that the aim is to reduce the accumulation of plastic in oceans as it causes the death of photosynthetic plankton, which produces more than 10% of our world’s oxygen. “Our other vegan silk products are mostly made from plant fibres. They are also known as semi-synthetic fabric despite being made from plants because of the chemicals used to make it last longer.” She said silk sarees are made by boiling live silkworms. This is to prevent them from exiting their cocoons naturally, which would leave a stain, thus affecting the quality of the final product. “Therefore, we came up with the vegan silk concept, which is made from plant fibres and discarded mushroom waste from food production units instead of harming silkworms.” Ashvinaa added that it takes 10,000 silkworms to make one silk saree. “Imagine how many silkworms are bred and killed just for fashion? “We believe silk is not a need, it is a want and you can live without it,” she added. Ashvinaa admits that it will take years to change the mindset of the whole fashion industry but she is willing to fight for the cause even if it takes time. She said ultimately, the decision to be environmentally conscious lies with the consumer. Ashvinaa added that she can only provide the information.
Source: The sun daily
Textile major Raymond will demerge its lifestyle business to Raymond Consumer Care (RCCL) to create a listed entity with B2C focused lifestyle business, the company said in an investor presentation on Thursday. “In line with our commitment to creating shareholder value, we have taken an affirmative action by demerging our Lifestyle Business that will be a separate listed entity with zero net debt,” said Gautam Hari Singhania, chairman, and MD, Raymond. RCCL as a lifestyle business will include brands such as Raymond, Park Avenue, Parx, Ethnix, and Color Plus. It will sell across categories including branded textiles, branded apparel, garments, and high-value cotton shirting. Earlier during the day, Raymond announced that it has sold its FMCG business, a part of RCCL to Godrej Consumer Care for Rs 2,825 crore. The company plans to use the proceeds to repay debt and make the Raymond Group net debt free.
Source: The retail.economictimes.indiatimes.com
India seeks to enhance trade ties with Latin America: EAM Jaishankae tells biz forum in ColombiaIndia seeks to bolster its trade with Latin America which is approaching USD 50 billion, External Affairs Minister S Jaishankar has said, as he highlighted that the Indian companies are investing significantly in the region in sectors like energy, mining, agriculture and automobiles. Addressing the India-Colombia Business Forum here in Colombia's capital on Thursday, he said his fournation trip to Latin America was aimed at exploring ways to upgrade India's level of cooperation with the region. "Our purpose in being here today is to highlight the growing presence of India in Latin America. Trade volumes between us are approaching the USD 50 billion level annually. Our companies are investing significantly in the region, from energy and mining to agriculture and auto sector," he said. Indian companies are executing projects in Latin America, including in infrastructure, power transmission and mining, he said, adding that they are also delivering products in the shipping and aviation domain. "Even where trade is concerned, while we naturally seek to expand its volumes, the decision before us is when, where and how much to invest. The pharmaceutical sector is particularly seized of this challenge. "Our endeavour is naturally to assess the comparative ease of doing business, among the countries of this region. We focus on market access issues, regulatory complexities and non-tariff barriers. Predictability of the business environment is also an important factor," he said in a statement. Jaishankar said during the Covid-19 pandemic, India truly established that it increased supply of relevant medicines. "The fact is, that Covid-19 has made us all much more health conscious but also aware of supply chain vulnerabilities. Cost is also a relevant factor. If we are looking at more sources, regionalised production and competitive pricing, I would suggest to our Colombian friends that the Indian industry is your natural partner," he said. Highlighting the areas of potential engagement between India and Colombia, Jaishankar said India also has a traditional medicine and wellness practice that could have strong business implications. "The digital domain has also seen exceptional progress in India...Today, India is very much the hub of innovation and start-ups. This is a land of 100 unicorns and growing. Whether you are interested in cyber security or artificial intelligence, drones or space applications, reaching out to Indian business is highly recommended," he said as he tried to woo Colombian investors. Energy is also an important domain of convergence, he said, adding that there have been significant investments in the oil sector by India and energy forms the core of Colombia's exports to India. "India will be driving much of the additional demand in fossil fuel, in the coming decades. That makes a stronger case for more sustained partnerships. India is also extremely active when it comes to renewables and electric mobility. These two are areas of potential engagement," Jaishankar said. "I believe that the challenge before us today is to scale up what is already done. But at the same time, to look for new domains that meet emerging demands and equally factor in emerging capabilities. At the end of the day, businesses will go where it is welcome, where it is mutually beneficial and where it is encouraged by policy. That is a message for all stakeholders," he said. Jaishankar is on a nine-day trip to Guyana, Panama, Colombia, and the Dominican Republic, his first visit as the external affairs minister to these Latin American countries and the Caribbean. "Arrived in Santo Domingo for my first official visit. Thank Vice Minister @josejuliogomezb for a warm welcome. Look forward to my engagements in the Dominican Republic," he tweeted on Friday.
Source: Economic times
INTERNATIONAL
The Cambodian textile and apparel industry needs to align its product mix as per the international sourcing trends, backward integrate to reduce dependency on import and diversify its market mix, according to the objectives of the government’s Industrial Transformation Map for Textile and Apparel Industry 2023-2027 (T&A ITM). The map was designed and formulated based on the evaluation of the global and Cambodian T&A sector and the government’s Cambodia Garment, Footwear and Travel Goods Sector Development Strategy 2022-2027. While pointing out the significance of the development map, Minister of Economy and Finance Aun Pornmoniroth said in the report: “This ITM set out four levers including product mix and international trade; skilling and productivity; technology and sustainability and infrastructure and governance. This ITM was designed in alignment with Cambodia’s development context and changes in global and regional economic architecture.” “The implementation of T&A ITM will contribute to addressing structural challenges in this industry and enable Cambodia to be ready to seize opportunities to promote sustainable and inclusive development of this industry as well as the economic growth and socio-economic development,” he added. It has four levers including product mix and international trade, skilling and productivity, technology and sustainability, and infrastructure and governance. The development strategy identified some focus areas for the short to medium term. It includes strengthening human resources to increase productivity and create career paths for workers-employees, improving working conditions and welfare of workers-employees, promoting domestic and foreign investments in high-extra value industries, and focusing on expensive and unique products. It also aims at attracting investment in supportive industry and promoting marketing diversification of garments, footwear, and bags. The transformation map identified that trade developments such as the partial withdrawal of Cambodia’s EBA trade benefits by the EU and Vietnam-EU free trade agreement are also expected to have a significant impact on the Cambodian T&A trade. It also pointed out that the challenges include internal factors such as rising wages, low productivity, low level of interest among young people to join the T&A industry and limited focus on sustainability parameters. While mentioning that the business model needs to transform from the present cut-make-trim (CMT) to a more value-added Free on Board (FOB) format and policy reforms are required to improve the business environment, it suggested some strategic measures for the crucial industry, which is mainly manufacturing simple knitted apparel for major exporting destinations such as the EU, US, and Japan. It said the product mix needs to be aligned with the international sourcing trends, such as MMF-made garments, which are high value-added products and in high demand in the international market instead of cotton garments. “Cambodia’s top three apparel markets destinations, namely the USA, Japan and Germany, account for 47 percent of its apparel export share while the top 10 markets round up 81 percent of Cambodia’s apparel exports. This indicates a concentrated market mix for the country which needs to be widened/diversified for better integration with the global value chain and internationalization. In this regard, Cambodia will promote the development of the textile and textile industry through the implementation of product development strategy and leveraging its present product strengths for market diversification,” the report observed. It also suggested that the backward integration for the manufacturing of finished fabrics and yarn needs to be encouraged.
Source: Khmertimeskh.com
Việt Nam’s economic recovery remains challenged with exports being hit hard by weakening global demand, experts said. Speaking at a meeting in HCM City on Tuesday, Minister of Industry and Trade Nguyễn Hồng Diên said exports have steadily decreased in most industries, including garments, agriculture, forestry, fishery and wood processing. “Local exporters have been struggling with weakening global demand as exports fell 11.9 per cent year-on-year in the first quarter, affecting their growth targets in the next five to 10 years,” he said. Total exports and imports were estimated at $154.3 billion in the first quarter, down 13.3 per cent year-on-year, he added. Exports of textiles, garments, leather and footwear, timber, and seafood are among the hardest hit with the main export markets being the US and the EU. Garment exports fell 8 per cent, handicraft and woodwork exports decreased by about 15 per cent, and seafood exports dropped 27.5 per cent. Exports to all markets decreased in the period, of which, exports to the US dropped 19.4 per cent; followed by the African market by 11.2 per cent; the EU 9.7 per cent; Asia 7.3 per cent; and Oceania 3.7 per cent, according to Diên. He attributed the decline to high inflation and the slowing global economy, particularly the risk of economic crisis in some of the country’s major markets, such as the US and the EU. Exporters are also facing a hike in raw materials for production while export prices remain unchanged, reducing the competitiveness of the products, he said. The cost of labour, packaging, and transportation have also been on the rise, he added. With Việt Nam signing a number of free trade agreements (FTAs), local exporters are expected to face many technical barriers (such as rules about clean and green energy conversion, low carbon production, and others), he noted. In addition, many businesses said it was still challenging for them to access loans. While the central bank has consistently called on banks to cut lending rates to support firms, getting loans disbursed has remained a problem for them, they said. Recommendations Nguyễn Hoài Nam, deputy general secretary of the Vietnam Association of Seafood Exporters and Producers (VASEP), recommended the Government have a lowinterest credit package of VNĐ10 trillion to support farmers and fishermen to buy raw materials to maintain production. According to Nam, most exporters borrow in USD currency. But the USD loan interest rate has increased to more than 4 per cent per year from 2.1-2.3 per cent per year. He proposed the USD loan interest rate be reduced to support exporters. Many textile and garment enterprises are also facing a lack of cash flow and do not have money to pay their employees. Trần Như Tùng, vice chairman of the Việt Nam Textile and Apparel Association (VITAS), proposed the Government consider offering a preferential loan package with zero interest rate to support textile and garment businesses to pay wages to employees. The Government also needs to reduce corporate income tax by 2 per cent for businesses which meet green standards and support interest rates for green transformation projects. Nguyễn Đình Tùng, vice chairman of the Việt Nam Fruit and Vegetable Association, said the central bank should consider products such as durian, longan and others. Early this week, the central bank announced it would restructure loans for struggling enterprises, including rolling them over by up to 12 months, following a demand by the PM. The central bank last month cut several policy rates to support economic growth. Việt Nam is among the world’s most open economies so weak external demand is affecting its economy, experts said. Industrial production in the first quarter fell 2.3 per cent from a year earlier, while retail sales of goods and services rose 13.9 per cent, according to the figures from the General Statistics Office. The country’s economic growth slowed to 3.32 per cent in the first quarter compared with 5.92 per cent in the last quarter of last year. Việt Nam has set a growth target of 6.5 per cent this year, below a decade-high expansion of 8.02 per cent last year.
Source: The einnews.com
The UAE and Cambodia have reached an agreement on the conditions of a bilateral trade agreement, as the Gulf state seeks to deepen trade and commerce links, notably in Asia, in vital economic areas. According to a statement released by the UAE state news agency WAM, the two countries completed discussions for a Comprehensive Economic Partnership Agreement (CEPA), as the trade agreement is known. When fully implemented, the CEPA will remove several tariffs on Cambodian agricultural products, leather goods, textiles, and footwear, while also opening up a new market for the UAE's manufacturing and industrial sectors. "Cambodia's food production and agricultural sectors, which are critical parts of their economy, will also help us achieve our food security ambitions," Thani Al Zeyoudi, the UAE's minister for foreign trade, said in a statement. The CEPA plan, which began in 2021 as the world economy recovered from the effects of the COVID-19 pandemic, is a crucial component of the UAE's economic development strategy, which intends to double the country's GDP to $762 billion by 2030. The Gulf state has signed CEPAs with India, Indonesia, Israel, and Turkey, and is now negotiating CEPAs with a number of other nations, including Costa Rica, Kenya, and Ukraine. Non-oil commerce between the UAE and Cambodia will top $401 million in 2022, up 31% from the previous year, while bilateral FDI will reach over $4 million by the end of 2020.
Source: The asiabusinessoutlook.com
Environment Committee MEPs adopted their recommendations today for EU measures to ensure that textiles are produced in a circular, sustainable and socially just way. MEPs say textile products sold in the EU should be more durable, easier to reuse, repair and recycle, made to a great extent of recycled fibres, and free of hazardous substances. They underline that textiles should be produced in a manner that respects human, social and labour rights, the environment and animal welfare throughout their supply chain.
Driving fast fashion out of fashion
To tackle overproduction and the overconsumption of clothes and footwear, the Committee calls on the Commission and EU countries to adopt measures that put an end to “fast fashion”, starting with a clear definition of the term based on “high volumes of lower quality garments at low price levels”. Consumers should be better informed to help them make responsible and sustainable choices, including through the introduction of a “digital product passport” in the upcoming revision of the ecodesign regulation.
Reducing emissions, water and energy use, increasing collection and reuse
MEPs want ambitious science-based targets to reduce g greenhouse gas emissions in the entire lifecycle of the textiles sector. They request the Commission and member states to ensure that production processes become less energy- and water-intensive, avoid the use and release of harmful substances, and reduce material and consumption footprints. Ecodesign requirements on all textile and footwear products should be adopted as a priority.
MEPs also want the revision of the Waste Framework Directive to include specific separate targets for textile waste prevention, collection, reuse and recycling, as well as the phase out of the landfilling of textiles.
Other recommendations include:
The inclusion of an explicit ban on the destruction of unsold and returned textile goods in the EU ecodesign rules; Clear rules to put an end to greenwashing practices, through the ongoing legislative work on empowering consumers in the green transition and regulating green claims; Ensure fair and ethical trade practices through enforcing EU trade agreements; The launch without further delay of the Commission initiative to prevent and minimise the release of microplastics and microfibers into the environment.
The own initiative report was adopted with 68 votes in favour, none against and one abstention.
“Consumers alone cannot reform the global textile sector through their purchasing habits. If we allow the market to self-regulate, we leave the doors open for a fast fashion model that exploits people and the planet’s resources. The EU must legally oblige manufacturers and large fashion companies to operate more sustainably. People and the planet are more important than the textile industry’s profits. The disasters that have occurred in the past, such as the collapse of the Rana Plaza factory in Bangladesh, growing landfills in Ghana and Nepal, polluted water, and microplastics in our oceans, show what happens when this principle is not pursued. We have waited long enough – it is time to make a change!” said rapporteur Delara Burkhardt (S&D, DE).
Source: European interest
But consumer spending, which accounts for about 70 per cent of US economic activity, remained resilient, growing at a 3.7 per cent annual pace, the fastest such rate in nearly two years. Spending on goods, in particular, was solid: It rose at its fastest pace since the second quarter of 2021. Economists had been expecting overall GDP to grow at a 1.9 per cent pace in the January-March quarter. Behind much of the quarter’s slowdown was a sharp reduction in business inventories, which subtracted roughly 2.3 percentage points from overall growth. Companies typically slash their inventories when they anticipate a coming economic downturn. The economy’s slowdown reflects the impact of the Federal Reserve’s aggressive drive to tame inflation, with nine interest rate hikes over the past year. The surge in borrowing costs is expected to send the economy into a recession sometime this year. Though inflation has steadily eased from the four-decade high it reached last year, it remains far above the Fed’s 2 per cent target. The housing market, which is especially vulnerable to higher loan rates, has been battered. And many banks have tightened their lending standards since the failure last month of two major US banks, making it even harder to borrow to buy a house or a car or to expand a business. “The economy had less forward momentum at the start of this year than previously thought,” Andrew Hunter of Capital Economics wrote in a research note. “We continue to expect the drag from higher interest rates and tightening credit conditions to push the economy into a mild recession soon.” Many economists say the cumulative impact of the Fed’s rate hikes has yet to be fully felt. Yet the central bank’s policymakers are aiming for a so-called soft landing: Cooling growth enough to curb inflation yet not so much as to send the world’s largest economy tumbling into a recession. There is widespread scepticism that the Fed will succeed. An economic model used by the Conference Board, a business research group, puts the probability of a US recession over the next year at 99 per cent. The Conference Board’s recession-probability gauge had hung around zero from September 2020, as the economy rebounded explosively from the COVID-19 recession, until March 2022, when the Fed started raising rates to fight inflation. Retail sales had enjoyed a strong start in January, aided by warmer-than-expected weather and bigger Social Security checks. But in February and again in March, retail sales tumbled. The worst fears of a 2008-style financial crisis have eased over the past month. But lingering credit cutbacks, which were mentioned in the Fed’s survey this month of regional economies, is likely to hobble growth. Political risks are growing, too. Congressional Republicans are threatening to let the federal government default on its debts, by refusing to raise the statutory limit on what it can borrow, if Democrats and President Joe Biden fail to agree to spending restrictions and cuts. A first-ever default on the federal debt would shatter the market for US Treasurys — the world’s biggest — and possibly cause a global financial crisis. The global backdrop is also looking bleaker. The International Monetary Fund this month downgraded its forecast for worldwide economic growth, citing rising Economy Get live Share Market updates and latest India News and business news on Financial Express. Download Financial Express App for latest business news. Follow us on First published on: 27-04-2023 at 19:53 IST interest rates around the world, financial uncertainty and chronic inflation. American exporters could suffer as a consequence. Recession fears rose early last year after GDP had shrunk for two straight quarters. But the economy roared back in the second half of 2022, powered by surprisingly sturdy consumer spending. A strong job market has given Americans the confidence and financial wherewithal to keep shopping: 2021 and 2022 were the two best years for job creation on record. And hiring has remained strong so far this year, though it has decelerated from January to February and then to March. The jobs report for April, which the government will issue on May 5, is expected to show that employers added a decent but still-lower total of 185,000 jobs this month, according to a survey of forecasters by FactSet.
Source: Financial express
Avery Dennison has signed a definitive agreement to acquire Lion Brothers a leading designer and manufacturer of apparel brand embellishments. The deal is expected to close in the second quarter of 2023, at which time Lion Brothers will become part of the Apparel Solutions business within the Solutions Group of Avery Dennison, significantly expanding our Embelex portfolio. The acquisition will allow the combined businesses to build on their collective industry knowledge and leverage Lion Brothers’ expertise, innovation, and service to expand Avery Dennison’s presence in high-value solutions and drive growth in external embellishments. Lion Brothers is recognized for integrating creative design with scientific and technological advancements to create product innovations for many notable brands and companies. Lion Brothers is headquartered in Owings Mills, Md., in the United States, with sites in Hong Kong and China. It had revenues of approximately $65 million in 2022 and 450 employees. “With the proposed acquisition of Lion Brothers, we continue to move forward as a leader in embellishments and apparel customization,” said Michael Barton, senior vice president and general manager Apparel Solutions, Avery Dennison. “Lion Brothers provides solutions that elevate apparel brands and create consumer connections. With a strong presence in North America’s team sports segment and solutions for lifestyle, fashion and promotional apparel brands, Lion fits seamlessly with Embelex, our full-service, end-to-end portfolio for on-product branding, graphics and trims. The Lion acquisition will enable us to continue growing our global team sports presence, expand our product offerings, add to our European portfolio and deliver outstanding value for all stakeholders.” “Since 1899, Lion Brothers has helped apparel brands tell the story of identity and belonging through brand insignia and embellishments that bring meaning and connection to each brand, community and consumer,” said Susan Ganz, owner of Lion Brothers. “We are excited to become part of Avery Dennison and will continue telling this story together. Avery Dennison’s global platform and capabilities will enable Lion to advance innovation and sustainability further as well as deliver our embellishment and apparel customization solutions to a larger, global audience.” Robert W. Baird & Co. advised Lion Brothers on the transaction.
Source: Textile world
Holland Industrial Group announces that they will be auctioning a selection of quality assets that are no longer required by Duvaltex. Over the last hundred years Duvaltex has been weaving tradition and sustainability from their four established textile brands. This Online Only Live Webcast Auction includes some of the most sought-after textile weaving machinery in the textile industry. Holland Industrial Group is conducting this sale with over 30 years of experience successfully completing plant liquidations and equipment auctions.
Featured assets in this auction include: HDB Card, Model Galaxy 2000, 80″ wide (2) Gaudino Ring Spinning Frames, (252) spindles/frame, 90mm ring, 4″ gauge Schlafhorst Autoconer, (22) spindles Hergeth Hollingsworth, Model KFR-4000 Mixing Bins Dell-Orco Villani 40″ Wide Picker Gualchierani Approx. 20-Ton Hydraulic Baling Press, Model DGG-20 Sperotto Rimar Sponger Steamer, Model Stabila Sperotto Rimar Continuous Decatising Machine, Model Multidecat La Meccanica Inspection Table, Model LM83 Fast Tran Cool Dry Oven (6) Thies & Morton Stock Dye Machines (30+) Dornier Dobby Rapier & Jacquard Air Jet Looms (4) Mat Continuous Fulling Mills Nesi & Pugi Fabric Tacking Machines, Model AT-H-290 Karl Mayer Sample Warper, Model ROM, ROT-O-MATIC Bond & Intra Inspection and Fabric Grading Frames Ingersoll Rand 150 HP Centrifugal Air Compressors, Model Centac IR Parts Room Includes: Gears, Motors, Electrical Panels, Blowers, Duct Conduit & More Toolroom Includes: Bridgeport Mill, Central Machinery Lathe, Saws, Threaders, Grinders, Parts Washers & More Caterpillar, Unicarrier & Mitsubishi Forklifts, 3000 – 5000 Lbs. Capacity Plus Much More… The Online Only Live Webcast Auction will begin on Thursday, May 18, 2023 at 11AM EDT. Asset inspection is available on Tuesday, May 16, and Wednesday, May 17 from 8AM – 4PM EDT
Assets are located at these five locations: 9 Oak St, Guilford, ME 04443 254 Water St, Guilford, ME 04443 32 Mill St, Newport, ME 04953 90e Rue, Saint-Georges, Quebec, Canada 250 Route de la Station, Saint-Victor, Quebec, Canada Holland Industrial Group Senior Vice President Alex Holland put the value of this sale in perspective. “With the growth in demand for sustainable fabrics,” he said, “this sale represents an excellent opportunity for our customers in the textile industry to enhance their ability to stay up to date. For those customers who are new to the industry,” Holland added, “this is a great opportunity to jump into the exciting textile industry.” For more information and to view the entire catalog of assets, please visit us online at www.hollandindustrialgroup.com. Holland Industrial Group brings decades of experience in valuing, buying, and liquidating heavy and light industrial surplus equipment. HIG has successfully completed hundreds of transactions across North America.
Source: Textile world
