INTERNATIONAL
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Giving a big boost to textile sector, Madhya Pradesh Industrial Development Corporation (MPIDC) is contemplating to exchange memorandum of understanding (MoU) between state authorities and 15 industries on investment commitments in the PM Mega Integrated Textile Region and Apparel (PM MITRA) Park in Madhya Pradesh. The Centre has announced plans to set up seven mega textile parks under the PM MITRA scheme in the country of which one will come up at Bhainsola village in Dhar district of Madhya Pradesh on more than 1,200 acre. A MoU between the Centre and the state government for the mega textile park is expected to be signed in the last week of May, according to officials. MPIDC Indore executive director Rohan Saxena said, “We are receiving enthusiastic response from industries willing to invest in the PM MITRA Park. Many garment and textile units have confirmed their presence and to seal the deal, we are planning to ink MoU with 15 industries on the day the state and the central governments will sign the MoU.” The state government has started chalking out the development plan for the PM MITRA Park in consultation with industry and stakeholders. Saxena said, “We plan to create a whole ecosystem for the textile and garment industry. The park will have all advanced facilities catering to the needs of the industry. The park will have residential apartments for workforce, common facility, logistics and commercial spaces among other facilities.” As per the development plan, the proposed park will have plug and play facilities, training centre, logistics, commercial space, health services apart from basic and advanced industry requirements. Saxena said, “We are planning an overall development at the site. We are also working on providing rail connectivity to the site.” PM MITRA Parks will come up in Tamil Nadu, Telangana, Gujarat, Karnataka, Madhya Pradesh, Uttar Pradesh and Maharashtra. The Centre has approved PM MITRA Parks with an outlay of Rs 4,445 crore for a period of seven years upto 2027-28.
Source: Times of India
Union Minister of Commerce & Industry, Consumer Affairs, Food & Public Distribution, and Textiles, Shri Piyush Goyal along with Hon'ble Mary Ng, Minister of International Trade, Export Promotion, Small Business and Economic Development, Government of Canada, will co-chair the discussions for the sixth India- Canada Ministerial Dialogue on Trade and Investment (MDTI) today in Ottawa. MDTI is a bilateral mechanism which provides institutional mechanism to discuss a broad spectrum of trade and investment related issues and cooperation areas. The Dialogue will focus on various themes including strengthening the Bilateral Trade Relationship between India and Canada, Investment Promotion and Cooperation, Green Transition – including Critical Minerals discussion and new Areas of Cooperation such as promoting B2B engagements. The Ministers will also review India-Canada CEPA (Comprehensive Economic Partnership Agreement) negotiations. At the last MDTI meeting in March 2022, both Ministers launched the CEPA negotiations with a possibility to have an interim agreement or EPTA (Early Progress Trade Agreement). Since then, seven rounds of negotiations have been held. The Minister will also be visiting Toronto from 9th to 10th May 2023, where he will have various engagements to promote trade & investment. These engagements will include meetings with CEOs of key Canadian companies, Round Table of Indian and Canadian CEOs, interaction with Canadian and Indian companies based in Canada and Financial Sector Round table etc. The Minister would be accompanied by a delegation of Indian CEOs led by FICCI. The Minister will inaugurate the Indian Pavilion at SIAL CANADA-2023, which is the largest food innovation trade show in North America with participation of more than 1000 national & international exhibitors from 50 countries. The event will address the needs of the retail, food service & food processing industries. At SIAL Canada, Indian business participation consists of delegation from Trade Promotion Council of India (TPCI), Agricultural & Processed Food Products Export Development Authority (APEDA), India Trade Promotion Organisation (ITPO) and Associated Chambers of Commerce and Industry of India (ASSOCHAM). There will also be a Trade and Investment Promotion Event for the Agricultural and Food Processing sector with Indian companies and Canadian importers on the sidelines of SIAL-2023. This event is likely to be attended by 200 companies. The visit is expected to impart further momentum to bilateral trade and investment relations.
Source: PIB
Announcing its audited results for the financial year 2022-23, Vardhman Textiles Limited, the Ludhiana-based textile conglomerate has reported a consolidated net profit of Rs. 805 crore. In a statement, the company said that it has reported a net profit of Rs. 749 crore on a standalone basis. The top line of the company is Rs. 9,841 crore, marginally higher by 5 per cent over the previous financial year while the interest, taxes, depreciation, and amortization (EBITDA) margin stands at 15 per cent, as against 27 per cent during the previous financial year. The net profit for 4th quarter of the financial year is Rs. 150 crore, which is higher by 66 per cent over the previous quarter. The top line of the company is Rs. 2,428 crore, higher by 6 per cent over third quarter, and the EBITDA margin stands at 13 per cent, against 10 per cent for the previous quarter. On a consolidated basis, the top line of the company has increased to Rs. 2,486 crore from Rs. 2,370 crore in Q3, an increase of 5 per cent. The net profit of the company for Q4 is Rs. 160 crore, higher by 52 per cent over Q3.
Source: Apparel resources
Imports of Chinese goods could dwindle, posing problems for Indian industry, amid a surge in quality control orders (QCO) by the Indian government and compounded by uncertainty over when Chinese officials will open their manufacturing facilities for insp Inspections by the Bureau of Indian Standards (BIS) have become crucial, with India imposing mandatory certification on many products for which QCOs have been issued. The announcements of hundreds of QCOs now require customs officials to block products not compliant with Indian standards. India has issued 115 QCOs so far, and orders on as many as 675 products across 14 ministries are under consideration. QCOs are being applied to products ranging from air-conditioners and refrigerators to footwear, wheel rims, chemicals, and protective clothing for industrial workers. The import delays may prove significant as China is India’s primary source for a wide range of products, including pharmaceutical ingredients, chemicals, machinery, auto parts, and medical supplies. The total imports from China increased to $98.51 billion during the financial year ended March against $94.57 billion in the previous fiscal, as per official numbers released by the “India is not blocking imports from China. The issue is that because of travel restrictions in China, inspections are not taking place. Chinese officials are yet to indicate the reopening of facilities for inspections. We have resumed inspection of all the countries whose embassies have written to us indicating their facilities are open for inspection. BIS can’t give certifications without inspections," a government official said, requesting anonymity. However, a company executive, who declined to be identified, said that Indian officials should begin visiting China to address the issue as the industry requires essential items. “India is not a big market for China, but for us, it is a critical item. We have given examples such as virgin fibre, low melt PSF fibre, and hollow conjugate fibre. So, to stop imports worth one rupee, we can’t jeopardize 100 rupees worth of exports. Low melt fibre, for instance, is used in several other sectors, such as the automobile sector and not just textiles. Prices have gone up. Chinese exporters have begun taking retaliatory steps. They are saying they won’t go for certification as cost is involved. India is 0.5% of their market. Why would they go through that pain?" the person added. “It must be added that even the industry is not prepared because they don’t react unless they are penalized. Most industries don’t have a policy team, and at least with the changes being brought about, some changes will come about," the industry representative further added. Anil Bhardwaj, secretary-general of the Federation of Indian Micro and Small & Medium Enterprises (FISME), said that the products under quality control order are mostly consumer products and, therefore, MSMEs are not facing disruption on the import front. “BIS does not have enough inspectors who would check MSME units in the country. Eventually, you will be able to stop imports from the select ports where Chinese products make their way to the country. So, imports will fall from China, which is what the government desires. In the short run, however, MSMEs that are manufacturing QCO products will feel the pain," Bhardwaj stated. Ajay Srivastava, the founder of the Global Trade Research Initiative, said that only a limited part of China’s imports enter the domestic market and that most imports act as inputs for making export products. Srivastava said that China follows several restrictive policies to curb imports. Queries send to the commerce ministry, consumer affairs ministry, and textile ministry remained unanswered till press time.
Source: live mint
Most of the business stalwarts across the globe are firm believers in India’s growth story and a few global apparel giants like Brandix, MAS Holdings and CIEL Textile Group had realised India’s strength long back. This is the reason that they are successfully enjoying growth and expanding their manufacturing footprints in the world’s fifth-largest economy. This ‘Advantage India’ scenario is continuing as major apparel manufacturing groups like Jordan-based Classic Fashion Apparel Industry Ltd. Co., Hong-Kong-based EPIC Group and Korea-based Youngone are also focusing on India as an apparel manufacturing destination for them. Apparel Resources(AR) explores the elements that pushed international companies decades ago and are pushing other such companies now also to invest big time in India. In fact, apparel stalwart groups are now bullish about India in all ways.
Factors that pushed companies decades ago For some, India’s growth story may seem to be a recent development taking place in the last 5-8 years, but as far as investment in apparel manufacturing is concerned, it’s almost 15-20 years since these giants stepped into India. Mauritius-based CIEL Textile entered India almost 20 years back, Sri Lankan apparel giant Brandix is completing almost 18 years in India, similarly, MAS Holdings is also in India for years. These manufacturers have made significant investments in India in recent years. With CIEL Textile’s wholly-owned subsidiaries, Aquarelle and Laguna India, total investments are likely to be US $ 100 million by the end of next year. The company has set up six facilities in Karnataka, which have a combined production capacity of over 14 million pieces of clothing per year. Aquarelle and Laguna India have also achieved LEED Platinum certifications for two of their six factories. Meanwhile, Brandix, also known for its many sustainable initiatives, has generated employment for nearly 22,000 people. It is worth mentioning here that none of the companies reduced their international operations and India was/is their choice for expansion. Throughout the ups and downs that the market faced, these companies maintained a consistent pace of investment, which contributed significantly in making India a preferred destination for expansion. Despite facing challenges and uncertainties, these companies recognised the immense potential of the Indian market and continued to invest in it. Their unwavering commitment to investing in India has not only helped to create employment opportunities but also fostered economic growth in the country. These companies have leveraged India’s vast pool of talent and resources to establish a robust foothold in the Indian market and expand their operations. Brandix India Apparel City (BIAC), located in Atchuthapuram Mandal in Visakhapatnam (Andhra Pradesh) is one of the best examples of successful apparel operations in India by an overseas group as it has trained more than 80,000 people from the surrounding areas, with over 80 per cent of its employees being women. Brandix had got the much-needed push with a combination of the State Government extending its fullest support and its customers seeing the early potential of ‘Made in India’ that triggered the group’s interest. Location is a key aspect to be considered for apparel manufacturing as it includes one-factor costs; stability of power and water supply; availability and training of workers; access to markets; a customer’s need to de-risk and diversify their sourcing locations etc., to be taken into account. Keeping these points in mind, Brandix chose this location.
Suchira Surendranath, Director – Strategy and Investments, BIAC shared with AR, “The location we picked, a literal green field at that time, had plenty of people available and willing to try their hands with an apparel industry job – that is what motivated us the most. The Government agreed to take care of water, power and road infrastructure, and all we needed to do was take care of the rest. We knew that if we set up the right foundation, bring the right partners in to help make a start, the natural potential of India would help scale up the operation eventually – and we were right.” Started in Mauritius, the CIEL Textile group later extended its operations to Madagascar and three decades ago, while the quota regime was being removed, the group did a detailed assessment of which countries they would like to diversify and India was the first choice. Targeting mid to up-market customers, CIEL Textile found a unique atmosphere in setting up manufacturing operations in India with political and economic stability, vertically integrated textile chain across product categories, talent pool, cultural fit, a great alternative to China and ease in doing business. And today, CIEL Textile group is one of the respected names in India with companies like Laguna, Aquarelle India (both in Bengaluru) and Tropic, Coimbatore. Today these three companies are aggressively active on various fronts for talent and they have a partnership with NIFT, IGP. They also have a strong thrust on digitalisation including data-driven factories, automation, digital showroom and 3D and AI-driven design.
Route option works well for few joint ventures The thrust of buyers to source more from India is pushing India’s manufacturing and this is the biggest reason why reputed companies like Classic Fashion, a Jordan-based manufacturer having a turnover of around US $ 954 million, are rapidly venturing into India. Classic Fashion is working with Walmart since 2006 which contributes almost 40 per cent of its total business. Walmart aims to purchase an overall US $ 10 billion worth of goods from India annually by 2027 and it motivated Classic Fashion to foray into India “We started our joint venture with three of the manufacturing facilities in Tirupur almost 20 months back, with greater push by Walmart for the same as the global retail giant wanted to increase sourcing from India and our organisation has a strong long-term relationship with Walmart,” said Sanal Kumar, CMD of the company who is expecting to add 5,000 fresh jobs in India. Having sourcing of around US $ 15 million from India last year, which includes knitted garments, Classic Fashion will increase its revenue from India to US $ 20 million in the current fiscal. Rather than investing in a new capacity, Sanal Kumar decided to opt for a joint venture as he found good capacity here. It helped him to save huge fresh investment and he supported already running facilities in terms of financing projects for using better technology and fabric procurement.
India – an incredible experience All overseas companies are content with their working in India and term it as incredible. “Our operations in India have been very successful and have far exceeded the initial expectations of the group. Laguna and Aquarelle are witnessing exponential growth and have been rapidly adding manufacturing capacities. New factories, set up close to Bengaluru, are amongst the best in the world. Top international brands are increasing their production from these factories and Tropic is a relatively younger business and is showing great promise,” informed Sarbajit Ghose, Member Board of Directors, CIEL Textile and MD, Laguna Clothing For Brandix also, India proved to be an incredible experience and the group is proud of its journey as what started as a single apparel plant has now grown into a fully integrated vertical textile and apparel ecosystem. “Our manufacturing operations have evolved significantly over the years, with a focus on automation, digitisation and sustainability. Automation has led to higher productivity and better quality of output, while digitisation has enabled us to speed up processes and better integrate across the value chain. Sustainability has always been a key priority for us and we’ve made significant progress towards our goal of becoming a Net-Zero Carbon Park by is the first industry in the state to have installed a solar sludge drying process unit that avoids the landfill of hazardous waste. Over the past 15 years, Brandix has seen its extended ecosystem beyond the boundaries of BIAC. Small junctions have transformed into bustling townships, with improved education and health facilities grooming and enticing a new generation of local candidates who can take up management roles in the company and lead it to even greater heights.
New players on their toes to explore opportunities Youngone Corporation and Epic Group are the two globally known players who have committed to starting operations in India in the next 12-18 months. There are a few more companies that are considering to start operations in India as they are in discussion with various State Governments. Jayesh Ranjan, Principal Secretary, Government of Telangana, Industries and Commerce (I&C) Department and Information Technology, Electronics and Communications (ITE&C) told AR, “While discussions are ongoing with more than one apparel-based overseas companies, we believe this is not the right time to get into the details as the discussions may be preliminary and/or confidential.” The quick support of Telangana to interested investors is a perfect example of how states should support prospective investments on the ground level. And as now, PM MITRA Park is approved in the state, there are enough chances that the state will attract more investments. Apart from the reasons which also motivated Brandix, CIEL Textile and MAS Holdings, constant improvement in the organised Indian apparel retail market is another reason for new entrants to have a strong manufacturing footprint in India. Exploring the fast-growing domestic market as an opportunity, two years ago, Laguna Clothing launched Aldeno – a luxury premium brand that celebrates fine Italian heritage and craftsmanship. And a more recent and perfect example is MAS Holding’s JV with Tata Group’s Trent Ltd. setting up an entity in India for the joint development of the business into intimatewear and other apparel products. This partnership further aligns with MAS’ long-term intent to scale business and expand its presence in India. MAS’ design and manufacturing span across 17 countries. About this JV, Desamanya Mahesh Amalean, Chairman, MAS Holdings said, “The significance of our partnership with Tata lies in our shared sense of values and an appreciation of the enormous business opportunities that the Indian market affords. This will help leverage our combined capabilities, connecting MAS’ expertise in product creation and manufacturing with Tata Trent’s expertise in Indian retail.” Talking to AR, Roger Guy Young, Chief Strategy Officer, Epic Group said, “India is a good opportunity as many big retailers have their retail operations in India and they are growing, those which are still not in India will sooner or later become a part of it. Factors like huge young population and disposable income, stable Government, strong and constantly improving infrastructure are in India’s favour.” Epic’s team is exploring various schemes of the Union Government. The group will produce both knits and woven garments in India and is expected to start operation in the second half of 2024. The focus will be to export from India as well as to cater to the Indian domestic market. For Youngone, the push to invest in India came from Telangana’s industrial policies. Three years ago, Youngone Corporation announced to invest more than Rs. 900 crore in the Kakatiya Mega Textile Park (KMTP) in Warangal (Telangana) producing knitted and woven garments for outdoorwear and creating around 12,000 direct jobs. It was supposed to start its operation in the state in January 2023 but couldn’t. Jayesh confirmed that the operations will commence in phases with the first unit commencing operations by the end of the year. The company has established its Indian subsidiary and has applied for and been approved under PLI Scheme. Youngone’s Indian team as well as project management consultants are in place and they will be finalising the contractors shortly. The company intends to set up eight manufacturing units for garments and technical textiles and other value-added products.
No major challenges Along with plenty of advantages, India does have challenges that vary from company to company. Whatever the challenges, these companies are not worried and are optimistic to overcome them. Brandix has faced its fair share of obstacles, but thanks to the support of its stakeholders and communities, it has been able to succeed over them. One major challenge it encountered is the deterioration of the SEZ scheme it set up in India. The Minimum Alternative Tax and Dividend Distribution Tax have significantly reduced the value of the tax holidays that were initially offered and the SEZ Sunset Clause has eliminated the incentive. Furthermore, regulatory changes like the withdrawal of the MEIS scheme and the exclusion of SEZs from the RoDTEP/RoSCTL schemes have put Brandix at a disadvantage, not just in India but also internationally. “However, we’re optimistic that the DESH bill or similar regulatory interventions will be implemented soon. We’ve had positive discussions with the Ministry of Commerce, and we believe that together, we can find solutions to these challenges and continue to grow sustainably,” said Suchira. Sarbajit feels that the availability of workers in cities is becoming a challenge, and the group has overcome this by setting up factories in rural areas. He also adds that the absence of duty-free access to major markets has been another challenge, but the group is confident that this will happen soon. In the last 20 months, Sanal Kumar has not seen any major challenge in India and similarly Roger Guy Young is also confident that as overall ease of doing business is improving in India, he doesn’t see any significant challenge in the country.
Expansion plans in place Whatever hurdles are there in India including the unpredictable global scenario, overseas companies are geared up to expand their existing operations in India. Several FTAs on the horizon and disruptions in the global supply chain are also factors pushing them to expand. Agreeing with this, Suchira said, “As we continue to work with regulators to address SEZ-related issues, we’re also exploring opportunities for growth within the Domestic Tariff Area of the park. The textile and apparel sector in India is poised for rapid expansion.” He further added that at BIAC, we’re well-positioned to facilitate this growth, thanks to our established integrated textile park with scalable, plug-and-play infrastructure. We have a 60MLD design capacity state-ofthe-art water treatment facility, a 56MLD design capacity effluent treatment facility, a 200 MW power substation, a fully connected internal road network and BTS partners who are eager to welcome new tenants. BIAC has two approved PLI projects in the park. Teejay India expanded its weft-knit synthetic fabric capacity as a PLI-approved project and is already in commercial production. It has also shared its learnings with the teams looking at the MITRA scheme. “Rather than looking at it as competition, we see immense potential in being able to collaborate and network with an ever-expanding ecosystem which can unleash the true potential of apparel manufacturing in India, providing unmatched value to the world in terms of speed and scalability,” said Suchira. Laguna Clothing and Aquarelle India plan to reach the capacity level of 10 million pieces of high-end shirts, each, in the next 3 to 4 years, from the current volume of 6-7 million shirts while Tropic plans to utilise its existing capacity in the next two years, before expanding further. “If the current demand continues, the sky is the limit in terms of further expansion,” said Sarbajit. Sanal Kumar also states that Classic Fashion is increasing its footprint in India as so far it was supplying from India to Walmart only and now similar discussions are on with Target, a US-based retailer. In future, apart from knits, woven may also be started for India. The company’s headquarter and core production hub in Jordan manufactures just 20 per cent of woven products of the overall product basket. He further added that it is good that working with a long-term vision, Indian Government has a strong focus on improving overall as well as textile and apparel industry-specific infrastructure. But at the same time to grow at a global level, factories have to be data-driven as still the majority of Indian factories are working in traditional ways. “India is shaping up as a destination that most business enterprises should look upon. The country has human resources, natural resources, financial resources and most importantly India has intellectual resources. So there is absolutely nothing that can stop India and the way, Indian Government is working for the past few years, I hope that this would continue for a long while and will be a win-win for India as well as for all those investing in India,” Sanal concluded.
Source: Apparel resources
The Odisha Government on Monday approved 11 projects with investment intents of Rs 2,840 crore in its 117 SLSWCA meeting under the chairmanship of Odisha Chief Secretary Pradeep Kumar Jena. The State Level Single Window Clearance Authority committee held today approved 11 industrial projects worth Rs 2840.73 crores that would generate 3721 employment opportunities for the people of Odisha. 9 of these proposals converted from the Companies that participated at Make in Odisha Conclave 2022 and showed investment intent in the state. The state government is working relentlessly towards converting these investment intents into ground reality. Projects spread across diverse sectors like aluminium & aluminium downstream, steel& steel downstream, chemicals& plastics, food processing & packaging, textiles & apparel, tourism and renewable energy received approvals. The approved projects will be set up across various parts of the state including Bolangir, Ganjam, Jagatsinghpur, Khordha, Mayurbhanj, Rayagada, Sambalpur andSundargarh Districts. The SLSWCA approved the proposal of RCR Steel Works Private Limited, entailing an investment of Rs 896.98 crores. It proposes to set up a steel plant in Jamda, Mayurbhanj and is expected to provide employment opportunities to about 750 people in the state. The committee also approved the expansion proposal of Utkal Alumina International Ltd at Rayagada district and Hindalco Industries Limited at Lapanga, Sambalpur, which promises cumulative investment of nearly INR 1000 crores and is expected to provide employment opportunities to over 500 people in and around of these districts. The SLSWCA also approved the project proposal of Mahindra Holidays and Resorts India Ltd. to set up a resort at Somolo Island, Chilika Lake in the Ganjam District with an investment of Rs 228.45 Crores. This project is expected to further strengthen Odisha’s position in the Tourism Map of India. In the chemicals sector, the committee gave a nod to a project, by Ion Exchange (India) Ltd. With an investment of Rs 303 crores, company proposes to set up a Manufacturing unit of 25000 MT Water Treatment Chemicals & 30000 MT Monomer and Polymers in Paradip, which will provide employment opportunities to over 150 people of Odisha. In the textiles and apparel sector, Indian Stitches Private Limited is setting up a fabric processing plant with an investment of INR 100 crores, generating employment opportunities for over 1000 people in the state. In the food processing sector, the project proposal of Taj SATs Ltd to set up food processing and packaging units in Khordha was approved. The project comes with an investment of Rs 51 Crores and potential employment for 200 people.
Source: The Pragativadi.com
INTERNATIONAL
The Taiwan Textile Research Institute (TTRI) and Bangladesh’s apex garment makers’ body of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) has decided to collaborate towards enhancing the capacity of Bangladesh readymade garment industry, especially in making MMF-based high-end apparel. This is as per reports, which added the BGMEA and the TTRI have signed a Memorandum of Understanding (MoU) to this end recently even as TTRI Vice President Sheng-fu Chu and BGMEA Director Asif Ashraf signed on the dotted lines on behalf of their respective organisations in the presence of Taiwan Textile Federation President Justin Huang and BGMEA Directors Faisal Samad and Abdullah Hil Rakib. The MoU also reportedly aims at fostering collaboration with respect to building the capacity of the industry through knowledge sharing and expertise in technology adaptation, skills development, innovation, resource efficiency and circularity apart from promoting direct or joint venture investments from Taiwan to Bangladesh in technical textile, woven textile and garment, non-cotton textiles, high-end garment items, skills development and innovation.
Source: The Apparel resources.com
Global fiber manufacturer Universal Fibers introduced a new solution for carpet manufacturing customers. “Natural” polyamide 6,6 (PA6,6) and polyamide 6 (PA6) yarn from Universal Fibers as the answer in support of flexible designs using various dye and print methods. For products and applications that require manufacturer-controlled dyeing, this product delivers reliable quality, on-time fulfillment, and open collaboration for which Universal Fibers is known. Available in a wide range of finish and texture options, Universal Fibers’ natural yarn is another powerful tool in the fiber design toolkit. “Now we truly can say we support every known color, carpet design, and manufacturing situation.” Says Phil Harmon, President of Universal Fibers. We have always been about collaborating to give our customers an array of options and finding solutions for their project needs. This versatile product adds another dimension to our offering and gives our customers complete control to design with a blank canvas. Natural yarn provides a great complement to our extensive solution-dyed yarn portfolio. The opportunity for our customers to have a single stop for both Solution dyed and Natural yarns, are fully realized in this product.” Engineered for versatility, Universal Fibers natural yarn can be sourced as a single fiber or blended with our solution-dyed products for a truly unique appearance, while our advances in low-carbon manufacturing, such as regional and renewable sourcing, offer our customers a sustainable fiber solution for designers utilizing varying dye methods. “Our aspiration has always been to be a total solution for our customers – this may seem to be a new and somewhat unexpected offering from Universal Fibers,” notes Harmon, “but it’s entirely consistent with how we’ve done business for over 50 years: we listen to our customers, learn from their needs, co-create solutions, and deliver with integrity, speed, and quality. We’re proud to add another chapter to our story.”
Source: Textile world
HSBC report said as a country particularly exposed to the global trade cycle, external weakness has dampened Vietnam’s growth. After falling 12% year-on-year in the first quarter this year, exports continued their double-digit decline, falling 11.7% year-on-year in April. HSBC said that the weakness continued to be broad-based, with key shipments such as textiles, footwear, smartphones and wooden furniture saw notable slumps. However, the only bright spot in April’s data was computer electronics, rising 5.4% year-on-year. Despite weakness in goods trade, services continue to provide some much-needed support. International tourist arrivals moved closer to one million in April, driven by a 70% month-on-month pick-up in Chinese tourists. While it will likely see weak growth in the first quarter this year, the bank expects the services sector to receive a punchier boost and the trade tide to turn in the second quarter, lifting whole-year growth to 5.2% in 2023.
Source: The en.vietnamplus.vn
April has been the most active and promising month so far this year in terms of sustainability in the fashion industry. It was marked by Earth Day on 20th April, Fashion Revolution Week, which commemorated the tenth anniversary of the Rana Plaza building collapse in Bangladesh on 24th April 2013, and the World Retail Congress in Barcelona from 25th to 27th April, which focused on sustainability, transparency, traceability and responsibility, among other topics. Probably the best news, however, came from members of the European Parliament's Environment Committee: they worked out stricter regulations and called for the end of fast fashion, a business model that promotes excessive production and consumption. Instead, the MEPs want to encourage European Union countries to produce recyclable, sustainable and socially responsible textiles that are more durable, easier to reuse, repair and recycle.
Europe In the UK, the Competition and Markets Authority's (CMA) Green Claims Code, launched ten months ago, aims to show brands and retailers how to avoid greenwashing by communicating their sustainability claims honestly and accurately so as not to mislead people. In an interview with FashionUnited, Cecilia Parker Aranha, director of consumer protection at the CMA, spoke about the regulator's ongoing investigation and findings on the Green Claims Code. She also gave advice on how to avoid greenwashing as a brand and what the future of sustainability communication in fashion might look like. German fashion brand Armedangels provided a good example of this by changing its marketing strategy, claiming that “sustainable products don’t exist”: every newly produced product leaves an ecological footprint and pollutes the environment - no matter how consciously and resourceconsciously it is manufactured. “Don't fall for promises that buying a product will do good for our planet, but listen carefully,” said Katya Kruk, impact & innovation director at Armedangels. “Consuming less and going for better quality is the best thing you can do for the environment.”
Technology The month of April also brought technological breakthroughs: the Hong Kong Research Institute of Textile and Apparel (HKRITA), for example, presented Acousweep, a new technology that uses sound waves to separate microplastics from wastewater. It captures and separates particles smaller than 5 millimetres, which are then collected in a separate container and can be recycled. According to the European Environment Agency, synthetic textiles account for about eight percent of the European that end up in the oceans. According to the Circular Economy Action Plan, which was published in March 2022, the EU is being urged to tackle microplastics. The UK got its first sustainable denim wash facility: the Blackhorse Lane’s Denim Wash Lab and Innovation Hub, which launched on 20th April in Walthamstow. The two state-of-the-art machines - the G1 70 All-in-One washing machine and The Laser made by Italian denim machinery specialists Tonello - will operate both commercially and act as a learning resource for students, brands and creatives who want to work on more sustainable ways of working with denim washes. Materials science company Pangaia and Natural Fiber Welding (NFW) unveiled the world’s first commercially available apparel made from Mirum, a new, plant-based and plastic-free material designed to be a solution for footwear, fashion, automotive, accessories, and upholstery. The latest innovation released through Pangaia Lab is an air gilet, which combines Pangaia’s organic cotton, signature fleece lining and its Flwrdwn filling made using a combination of wildflowers, a biopolymer and cellulose aerogel, with an exterior made from a newly reformulated and thinner leather-like version of Mirum.
Brands Discounter Primark launched its first circular collection, while Zara partnered with Circ on a collection made from recycled polycotton. Active apparel manufacturer Smartwool took textile-to-textile recycling to a new level when it announced the launch of the ‘Second Cut’ hiking sock, its first circular sock made from old, discarded socks sent in by customers, thus turning old socks into new socks. Adidas, meanwhile, announced that 96 percent of the polyester used in its products is recycled and beauty and fashion group Puig joined the Sustainable Markets Initiative’s Fashion Task Force. Nike announced the launches of new upcycled collections in the frame of its Re-Creation program for London and Paris this summer and the Natural History Museum in London presented a collection in collaboration with sustainable clothing company Teemill. The US bag and fashion label Coach launched its sub-brand Coachtopia, which is based on a circular design philosophy and Gen Z. The brand is also focusing on the recyclable sector. New research by financial think tank Planet Tracker, however, revealed that many of the world's largest textile companies like Anta Sports, Gap, Levi Strauss, Nordstrom, Under Armour and Victoria's Secret are failing to link executive pay to environmental, social, and governance (ESG) performance, a key driver of credible action.
Adidas, meanwhile, announced that 96 percent of the polyester used in its products is recycled and beauty and fashion group Puig joined the Sustainable Markets Initiative’s Fashion Task Force. Nike announced the launches of new upcycled collections in the frame of its Re-Creation program for London and Paris this summer and the Natural History Museum in London presented a collection in collaboration with sustainable clothing company Teemill. The US bag and fashion label Coach launched its sub-brand Coachtopia, which is based on a circular design philosophy and Gen Z. The brand is also focusing on the recyclable sector. New research by financial think tank Planet Tracker, however, revealed that many of the world's largest textile companies like Anta Sports, Gap, Levi Strauss, Nordstrom, Under Armour and Victoria's Secret are failing to link executive pay to environmental, social, and governance (ESG) performance, a key driver of credible action.
Source: The Fashionunited.in
Cabinet Secretary for Trade Moses Kuria has said that his ministry is looking at making the country a value-added commodity export market. By exporting unfinished goods, Kuria lamented that the country is losing millions of shillings in revenue every day. “We will take time to carefully study and benchmark how Indonesia has tremendously grown her GDP through value addition of natural resources and seek to apply the same models on resources like Soda Ash, which has been shipped away unprocessed for decades thus denying Kenya huge revenues,” “said Kuria while announcing his trip to Indonesia on his Twitter page. The CS further added that his delegation will explore trade and investment partnerships in several sectors, including edible oils, mining, renewable energy, the blue economy, pharmaceuticals, meat and livestock, electric mobility, textiles and apparel, coffee, tea, nuts, and flowers. Kenya is one of the leading exporters of cut flowers in the world, emanating from its vast flower farms in Naivasha. The country is also a leading exporter of tea and coffee products throughout the world. Kuria’s trip comes against the backdrop of President William Ruto’s efforts to resuscitate the agricultural sector. In February last year, the President indicated that in the next five years, Kenya’s value-added tea for export must rise from five percent to 50 percent at the minimum. Ruto noted that the country’s competitors produce approximately 60 percent of what Kenya produces but earn three times as much because they add value to their tea.
Source: The capitalfm.co.ke
International clothing retailers and brands are demanding up to 5 per cent discount from Bangladesh’s apparel exporters, adding another challenge for the suppliers who are already grappling with multiple issues amid volatile global economic scenario. “Suppliers are being compelled to accept the lower prices since retailers will not continue placing orders with them if they don’t agree to the new prices. Sometimes, the prices are lower than the production cost,” said Mohammad Hatem, executive president of the Bangladesh Knitwear Manufacturers and Exporters Association. Under the current cost of production situation, local manufacturers need a profit margin of 20 per cent to 25 per cent instead of the current 10 per cent to 15 per cent, Hatem said. “If the profit margin ranges between 20 per cent and 25 per cent, manufacturers can pay a living wage to workers. But the net profit goes down to 2 per cent if the gross profit stands at 10 per cent to 15 per cent.” He said retailers and brands need to follow ethical and responsible business practices as local suppliers have spent billions of dollars to strengthen workplace safety in line with the recommendations of the Accord and the Alliance, the two factory inspection agencies backed by global buyers. Hatem was speaking at a dialogue organised on the occasion of International Labour Day. The HerNet Foundation organised the event at Gulshan Club in Dhaka. Abdullah Al Mamun, vice-president of the Bangladesh Textile Mills Association, said despite paying a higher tariff for gas and power and spending heavily to establish the safest factories in line with global standards, local textile and garment suppliers are getting the lowest price from buyers. Faruque Hassan, president of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), echoed both Hatem and Mamun. He said buyers are demanding discounts because of the slowdown in sales in their respective markets and of the unsold inventories that have piled up in recent seasons. Hassan called on retailers and brands to follow ethical buying practices as many manufacturers have already become bankrupt because they could not withstand the downward pressure on prices. He warned that retaining last year’s export earnings would be difficult this year because of the current downward trend of exports induced by the severe fallout of the Russia-Ukraine war. Shaheen Anam, executive director of the Manusher Jonno Foundation, said workers must have a platform where they can speak. “The dignity of workers needs to be ensured.” She said, “We all want the garment industry to be successful in every way possible. We would like our garment industry to be the best in the world.” “At the same time, we don’t want our garment industry to be known for cheap labour. We want the garment industry to be known as efficient and ethical.” Bernd Spanier, deputy head of the European delegation to Bangladesh, said he does not feel worried about the future of Bangladesh’s garment sector. Two weeks ago, the EU parliament held a special session and discussed the apparel sector. During the discussion, parliamentarians recalled the Rana Plaza incident, he said, adding that the EU is formulating due diligence rules to ensure more responsible business behaviour from both buyers and suppliers. According to BGMEA’s Hassan, the first meeting of the new wage board for garment workers will be held on 24th May and the wage is expected to see a good raise. Buyers need to play a major role to ensure the wage rise by increasing the prices of goods, he said. Sirajul Islam Rony, workers’ representative to the wage board, said garment exporters are getting one of the lowest prices from retailers and brands. “Brands are making profits whereas workers are facing difficulties,” he said, suggesting retailers follow ethical buying practices.
Source: The Apparel Resources
Import cargo volume at the nation’s major container ports is climbing back from a nearly three-year low in February but is expected to remain well below last year’s levels heading into this fall, according to the Global Port Tracker report released today by the National Retail Federation and Hackett Associates. “Consumers are still spending and retail sales are expected to increase this year, but we’re not seeing the explosive demand we saw the past two years,” NRF Vice President for Supply Chain and Customs Policy Jonathan Gold said. “Congestion at the ports has largely gone away as import levels have fallen, but other supply chain challenges remain, ranging from trucker shortages to getting empty containers back to terminals. We were pleased by recent reports of progress related to the West Coast port labor negotiations but will continue to monitor the situation closely until there is a new agreement ratified by both parties. ” “With economic uncertainty continuing, the impact on trade is clear,” Hackett Associates Founder Ben Hackett said, noting continued high inflation, Federal Reserve interest rate hikes and recent bank failures. “Year-over-year import volumes have been on the decline at most ports since late last year and declining exports out of China highlight the slowdown in demand for consumer goods. Our forecast now projects a larger decline in imports in the first half of this year than we forecast last month. Our view is that imports will remain below recent levels until inflation rates and inventory surpluses are reduced.” U.S. ports covered by Global Port Tracker handled 1.62 million Twenty-Foot Equivalent Units – one 20-foot container or its equivalent – in March, the latest month for which final numbers are available. That was up 5% from February – which saw the lowest levels since May 2020 – but down 30.6% year over year. Ports have not yet reported April numbers, but Global Port Tracker projected the month at 1.73 million TEU, down 23.4% year over year. May is forecast at 1.83 million TEU, down 23.5% from last year’s 2.4 million TEU, the all-time record for the number of containers imported during a single month. June is forecast at 1.9 million TEU, down 15.9%; July at 2.01 million TEU, down 7.9%; August at 2.04 million TEU, down 9.9%, and September at 1.96 million TEU, down 3.4%. The large year-over-year declines are skewed by unusually high volumes last year. The first half of 2023 – previously forecast at 10.8 million TEU – is now forecast at 10.4 million TEU, down 22.8% from the first half of 2022. Global Port Tracker has not yet forecast the full year, but the third quarter is expected to total 6 million TEU, down 7.2% from the same time last year, and the first nine months of the year would total 16.5 million TEU, down 17.8% year over year. Imports for all of 2022 totaled 25.5 million TEU, down 1.2% from the annual record of 25.8 million TEU set in 2021. Global Port Tracker, which is produced for NRF by Hackett Associates, provides historical data and forecasts for the U.S. ports of Los Angeles/Long Beach, Oakland, Seattle and Tacoma on the West Coast; New York/New Jersey, Port of Virginia, Charleston, Savannah, Port Everglades, Miami and Jacksonville on the East Coast, and Houston on the Gulf Coast.
Source: Textile world
