The Central Board of Direct Taxes (CBDT) in India has launched an "e-appeal" scheme designed to reduce the pendency of appeals relating to tax deducted at source (TDS) default issues and tax collection at source (TCS). The scheme allows the Joint Commissioner (Appeals) to dispose of appeals filed before it, with the power to send show-cause notices and initiate penalties. The Central Board of Direct Taxes (CBDT) on Tuesday launched “e appeal” scheme announced in the budget to reduce pendency of appeals related to Tax Deducted at Source (TDS) default issues and tax collection at source (TCS). The scheme empowers the Joint Commissioner (Appeals) for disposing of appeals filed before it or allocated or transferred to it, with power to send show cause notice, initiate penalty under the relevant provisions of the Act. They will have no power to issue summons, as there is no provision of physical meeting either personally or through authorised representatives in connection with any proceedings under this Scheme. An appeal for personal hearing by the appellate will be through video conference. The centre has already amended the Finance Bill to Insert Designation New Joint Commissioner (Appeals) in the Income Tax Act. The CBDT will deploy about 100 posts of joint commissioners of the income tax department for this purpose. “The JCIT (Appeals) shall have such income-tax authority, ministerial staff, executive or consultant to assist in the disposal of appeals, as may be considered necessary by the Board,” CBDT said in a circular issued on Tuesday. Officials said the appeals dealt here will be mainly relating to TDS default, the orders on TDS default, and the orders on the processing of return of income among others. Under the Income Tax law, an order issued by the tax authority can be challenged by the taxpayer first be.. In her Budget speech Finance Minister Nirmala Sitharaman had proposed an E-Appeal scheme for disposal of small appeals and to reduce the pendency of appeals at the commissioner level. “This is a welcome move and introduction of another authority at the CIT(A) level should help reduce the backlog of pending cases,” Amit Singhania, Partner, Shardul Amarchand Mangaldas said.
Source: Economic Times
The technical textile industry is largely associated with manufacture of specialised textiles and apparels produced through technological modification of natural and man-made fibres. India’s target to raise the turnover of the domestic technical textiles sector to $40 billion by 2024 is set to be missed a wide margin, due to a variety of reasons including insufficient R&D and innovation. The sector clocked a good annual growth of 8-12% in recent years, but it was still worth only $21.95 billion in FY22. According to Ashwin Thakkar, vice-president, Textile Association of India, the country lags behind in the manufacturing of high-performance fibres, which are used in almost all the sectors of manufacturing, including healthcare. “India meets most of its highperformance fibre demands through imports. Vietnam, South Korea and Taiwan are doing better than us,” he said. PP Raichurkar, director, MANTRA, a Surat-based independent textile research body, said, “The ongoing research in technical textiles is going to play a crucial part for the future of the textile industry. In the coming times, the demand for medical, biodegradable, industrial, sports, healthcare, automobile and housing textiles will dominate the textile industry.” The technical textile industry is largely associated with manufacture of specialised textiles and apparels produced through technological modification of natural and man-made fibres. The industry produces fabric with higher tenacity, excellent insulation and improved thermal resistance. These new generation fabrics including nomex, kevlar, spandex, etc are used extensively in the healthcare, automobile, industries, housing and security industries. According to a recent report by the textile ministry, the global technical textile market, in 2020, was valued at $260 billion and is expected to cross $300 billion by 2025. The driving factors for the industry will be new application areas like innovative R&D, climate change, useful physical properties of technical textiles and the shift from natural to manmade fibers. The ministry further noted that though India ranks among the most important textile players globally, it is still a small segment with 10-12% share in the overall textiles & clothing industry. In many developed countries, technical textile constitutes anywhere between 30-70% of total production. Export of technical textiles stood at $2.85 billion in FY22, up 28.4% on year, while imports came in at $2.46 billion, up 44% on year, reflecting a growing reliance on imports to meet domestic demand. Packtech (41%), indutech (11%), mobiltech (10%), buildtech and hometech (10%) contribute more than two-thirds of the Indian technical textile sector, according to the ministry report. Commenting on the future prospects of the sector, Thakkar said, “Nano fibre, filtration fabric and carbon nanotube are the emerging areas in the sector. Recently, tech giant Google and textile brand Levi’s have created a jacket using high-performance fibre which can be used for health-monitoring purposes. Nowadays, a specific part of hernia transplantation is being made with the use of technical textile. This is the indication that technical textile has a very bright future ahead.” The National Technical Textile Mission plans to invest `1,480 crore for the growth of the industry, of which `1,000 crore will be spent on research on development. Welspun group, SRF, Garware Technical Fibers and Arvind are the leading players in Indian technical textile industry. Pertinently, hometech and packtech are the two segments of technical textile where the production is more than the consumption in domestic markets. Arvind Group’s advanced materials branch states that “technical textile is going to be the important catalyst in solving the growth and development ambitions of the country and the group endeavors to branch out into other areas of materials which use textile as backbone”. Similarly, the Welspun website states that the company caters to consumer demands through innovation and technology, and aims to achieve inclusive and sustainable growth in this niche sector.
Source: Financial Express
Individual brands and buyers are asking for specific compliances such as use of recycled cotton, green production facilities, waste water recycling. This is a process that started about two years ago and caught on in the last few months, says K.M. Subramanian, president of Tiruppur Exporters’ Association International buyers sourcing garments and home textiles from India are asking for compliance to environmental, social and governance (ESG) framework. Textile and garment manufacturers in the clusters in Tamil Nadu are gearing up to meet these demands. “Individual brands and buyers are asking for specific compliances such as use of recycled cotton, green production facilities, waste water recycling, etc. As of now, almost all brands want to have a segment of their products under the ESG compliance. Some buyers are willing to pay a premium for the garments that meet these targets, others are not. This is a process that started about two years ago and caught on in the last few months, especially for baby garments,” says K.M. Subramanian, president of Tiruppur Exporters’ Association. At present, the larger garment manufacturers in Tiruppur are able to meet these demands. Those who do not have the necessary infrastructure will have to invest so that they get orders. “We expect about 20 % of the orders to be ESG compliant in the coming years,” he said. According to Siddhartha Rajagopal, Executive Director of Cotton Textiles Export Promotion Council (Texprocil), individual buyers are working with their suppliers for sustainability goals. Some countries have started linking these to their trade policies. The suppliers in India will incur higher costs to meet these demands. “They (buyers) may ask for specification of the compliance details on the labels. In two-three years, this will become a big movement,” he said. The Council has taken up a project for traceability of cotton and some textile mills have come on board, he added. Chandrima Chatterjee, Secretary General, Confederation of Indian Textile Industry, said the Association is looking for tie-ups with international agencies at two levels - compliance/reporting the compliance and green funding. “As of now, compliance is largely voluntary. But, ESG reporting is expected to become mandatory by 2026,” she said. The Association is working on collaboration with international agencies so that its member units get expert guidance and are able to build capacities to meet the ESG norms. In collaboration with Innovation Centre Denmark, Confederation of Danish Industries India office, and the lifestyle and design cluster Denmark, the Association organised a workshop recently on sustainable sourcing and ESG. “The Indian government has formed an ESG task force and is focusing on it. Industries will also need funds to build infrastructure and bring in technology to meet the ESG framework specifications. Green funding agencies will be able to support the industries,” she said.
Source: The Hindu
According to the policy, there will be an increase in the cotton processing capacity in the state from 30-80 per cent in the next five years, and will likely attract investment of Rs 25,000 crore and generate employment up to 5 lakh. The Maharashtra cabinet on Tuesday approved the new textile industry policy — which officials said was aimed at attracting investment of Rs 25,000 crore in the sector in the near future — in a bid to boost investment in the state’s cotton production industry. According to the policy, there will be an increase in the cotton processing capacity in the state from 30-80 per cent in the next five years, and will likely attract investment of Rs 25,000 crore and generate employment up to 5 lakh. Officials said that the Textile Commissionerate and the Silk Directorate will be merged to form the Textile and Silk Commissionerate, and the office at the regional level will be known as the Regional Deputy Commissioner – Textile and Silk. The authorities aim to establish six technical textile parks across the state under the policy, said officials, adding that the Maharashtra Technical Textiles Mission will also be undertaken to ensure “aggressive growth” of the sector. The Technical Textiles sector is undergoing a paradigm shift in technology, leading to faster and more efficient systems. To promote research and development in these emerging technologies, a fund of Rs 50 crore will be earmarked every year, they added. The Maharashtra State Textile Development Corporation (MSTDC) — a statutory corporation — will be created through a functional merger of the existing three corporations to develop a sustainable and fertile environment for the growth of the state’s textile industry. The state will also implement an integrated plan for the development of the silk industry. To promote the sector, the government is set to prepare a scheme with detailed guidelines to provide one free saree to every family below the poverty line every year, it added.
Source: Indian Express
Union Finance and Corporate Affairs Minister, Smt. Nirmala Sitharaman today chaired the 2nd meeting of the Apex Monitoring Authority constituted to review the activities of National Industrial Corridor Development and Implementation Trust (NICDIT). Union Minister of Commerce & Industry, Consumer Affairs, Food and Public Distribution & Textiles, Shri Piyush Goyal and Union Minister of Ports, Shipping and Waterways & Ministry of Ayush, Shri Sarbananda Sonowal also attended the meeting. The Apex Monitoring Authority comprises of Finance Minister as Chairperson, Ministerin- charge, Ministry of Commerce & Industry, Minister of Railways, Minister of Road Transport & Highways, Minister of Shipping, Vice Chairman, NITI Aayog, and Chief Minister(s) of States concerned. Chief Ministers from four states, viz. Gujarat, Haryana, Uttarakhand, and Maharashtra; Ministers from 9 States viz. Bihar, Uttar Pradesh, Madhya Pradesh, Andhra Pradesh, Kerala, Punjab, Jharkhand, Karnataka, and Rajasthan besides senior officials from all the states attended the meeting. Smt. Nirmala Sitharaman at the very outset, thanked the State Chief Ministers and Ministers for their continued support and cooperation in the development of NICDIT projects and appreciated the efforts made by the NICDIT team in the successful implementation of its projects. She emphasized upon the need to ensure continued coordination between the Central and the State Governments and said they should work collectively as ‘Team India.’ Union Finance Minister stated that “FIRE Corridors = F – Freight; I – Industrial; R – Railways; E – Expressways” will ignite industrialization & economic development in India. The Finance Minister stated that the rapidity with which the infrastructure is being developed since 2014 needs to be maintained. She urged the State Governments and NICDIT to maintain the same momentum for realizing the vision of Prime Minister Shri Narendra Modi of a Developed India by 2047. She urged all the States to tie up loose ends and move forward and resolve all pending issues through greater exchange and sharing of information to expedite the progress of works in the respective States. Shri Piyush Goyal emphasized upon the financial viability of the projects. He urged the States for faster allotment of lands at reasonable rates. He stated that States should adopt innovative models and offer package deals etc. for faster investments. He said that electricity rates should be affordable and consistent as high rates of electricity are a deterrent to the industry. Union Commerce and Industry Minister urged the State Governments to expedite acquisition of contiguous, litigation encumbrance free land and grant early environmental clearances for the NICDIT projects. He further stated that States should focus on expediting the finalization and execution of the Shareholders Agreements and State Support Agreements. He directed NICDC to foreclose the projects where the State Government is not able to provide committed land in a time bound manner and to conceive projects in other states that are willing to offer land to expedite investments in their respective states. He concluded by saying, India is making rapid strides towards Aatmnirbharta and continuous support from States will be the best contribution in this nation building process. Shri Sarbananda Sonowal stated that the development of economic zones in and around ports may also be looked into. This was followed by a special address by Shri Suman K Bery, Vice Chairperson, NITI Aayog. The meeting started with a brief overview of the National Industrial Corridor Programme by the Secretary, DPIIT & Chairman, NICDC, Shri Rajesh Kumar Singh who talked about the status of land allotment and investment mobilized till date in his welcome address. Smt. Sumita Dawra, Special Secretary- Logistics, DPIIT and CEO & MD, NICDC presented action taken on the directions of the 1st meeting and further spoke about the recent developments in the industrial corridor projects and gave a brief overview about the projects which are in the pipeline. During the presentation, she highlighted the adoption of PM’s GatiShakti National Master Plan in Industrial Corridor projects. Smt. Dawra also apprised that as per the directions of the Union Finance Minister in the previous meeting, Round Table Conferences, Roadshows & meetings with international associations are being organised at different places with the support of States & SPVs. Chief Ministers/Ministers of Industries/Senior Officials of the respective states spoke about the projects which are/or will be undertaken in their jurisdiction and the steps they are taking to ease the land allotment process and to give faster clearances. They assured that all possible support will be extended to the projects under NICDIT for early implementation on the ground. The meeting proved to be a valuable platform for key stakeholders to discuss and exchange ideas on the progress, challenges, and future strategies related to the National Industrial Corridor Development Program. It presented an opportunity to align efforts, foster collaboration, and accelerate the development of industrial infrastructure across the country. Further steps to be taken into consideration for the advancement of the National Industrial Corridor Development Programme were the main points of discussion during the meeting of Apex Authority. The National Industrial Corridor Development Program aims to establish a network of industrial corridors that will serve as engines of economic growth, promote industrialization, and create employment opportunities across India. The program focuses on developing world-class infrastructure, attracting investments, and fostering sustainable industrial development.
Source: PIB
Growth in services and manufacturing and private investment rebound likely to have helped economy in Q4. India’s economy, in the latest January-March quarter (Q4 FY23), is expected to show a much-improved growth sequentially and year-on-year, driven by the manufacturing and services sectors and an encouraging rise in private investment. The official print for Q4 FY23 and full year FY23 will be released by the National Statistical Office later on Wednesday. Analysts expect Q4 GDP growth to be at least 5 per cent, and the consensus is that FY23 GDP growth will be around the official advance estimates of 7 per cent, which will make India the fastest growing major economy. The Q3 FY23 (October-December) GDP came in at 4.4 per cent growth. In Q4FY22, GDP growth was 4 per cent. “SBI’s model, based on 30 high frequency indicators from key sectors, and tuned/trained to project the GDP numbers forecasts the quarterly GDP growth for the Q4FY23 at 5.5 per cent. At this rate, India’s GDP growth for FY23 is likely at 7.1 per cent,” said Soumya Kanti Ghosh, chief economic advisor, State Bank of India Group. Ghosh said that there are signs of a renewed surge in manufacturing while supporting the services sector to embrace enhanced efficiency. “In India, domestic consumption and investment stand to benefit from stronger prospects for agricultural and allied activities, strengthening business and consumer confidence, and strong credit growth,” he said. A poll by Reuters, last week, of 56 economists pegs Q4 FY23 growth at 5 per cent. An earlier poll by the wire agency, in April, of 45 economists, pegged FY23 GDP growth at 6.9 per cent. However, most analysts now say FY23 growth will at least be 7 per cent, or could even top that. A poll of 15 analysts by Moneycontrol.com sees Q4 FY23 GDP growth at 5.1 per cent. “Growth recovery remains on track with Q4FY23 GDP growth expected at 5.1 per cent y-o-y versus 4.4 percent in Q3. Recovery is likely to be led by the services sector with a pick-up in trade, hotel and transportation and government expenditure,” said Gaura Sengupta, India economist at IDFC First Bank. Sengupta sees FY23 GDP growth at 7 per cent, same as the NSO’s projections. Sengupta said that while consumption recovery continues to be supported by urban areas, rural consumption is also showing nascent signs of recovery as real rural wage growth turns positive. She added that capex cycle recovery, which has depended on central government expenditure, got some support from pick-up in state government expenditure and improvement in capacity utilization by the private sector. Capex cycle indicators showed a steady recovery with pick-up in capital goods imports (10.8 per cent YoY in Q4), steel consumption (17.1 percent YoY in Q4), capital and infrastructure production, said Sengupta. Last week, Reserve Bank of India Governor Shaktikanta Das said that FY23 GDP growth could be more than 7 per cent. “According to all the recent trends, it will not be a surprise if GDP growth for last year comes above the official estimate of 7 per cent. All the economic indicators for Q4 show that economic activity sustained momentum, and in fact in all the high frequency indicators which we monitor, the momentum was maintained in Q4,” he had said. The Finance Ministry’s latest Monthly Economic Review said that corporates have started investing in new capacity, buoyed by sustainable growth in activity. During Q4 FY23 the Centre for Monitoring Indian Economy reports the completion of projects worth Rs 60,000 crore and the announcement of new projects valued at Rs 10.9 trillion, the Ministry had stated.
Some analysts still had concerns about the spread of recovery.
“Economic activity in Q4FY23 remained uneven, with domestic demand for services outpacing that for goods and surprisingly robust exports of services amidst a contraction in merchandise items,” said Aditi Nayar, Chief Economist, ICRA Ltd. Nayar said that lower commodity prices offered relief for margins in some sectors, while trends in investment activity and government spending were mixed. However, unseasonal rains are expected to have affected the rabi output of some crops, weighing upon the growth of agriculture GVA.
Source: Business Standard
At the recently concluded Ahmedabad edition of the ET Make in India - MSME Regional Summit, key policymakers, entrepreneurs, leading industry bodies, and MSME stakeholders spotlighted the growth opportunities for Gujarat’s micro, small, and medium enterprises. They also highlighted the challenges faced by MSMEs in various sectors such as gems and jewellery, textiles, healthcare and vaccine manufacturing, chemicals and manufacturing, among others. Delivering a keynote address on the theme of ‘Building future-ready MSMEs for India@100: Policies, schemes & initiatives to promote MSMEs in Gujarat,’ Rajesh D. Barhatt, Joint Commissioner of Industries, Government of Gujarat shared valuable insights on the state and progress of the Gujarat MSME industry, highlighting key achievements, policies, and milestones. “MSMEs are the backbone of the economy. We have a blueprint for MSMEs growth as a nation and as a state. For Gujarat as well, we have clear cut policies and a roadmap for MSMEs. I’m happy to say that since Gujarat is a policydriven state, we have a policy in place for every aspect of the industry or every expenditure that an industrial unit makes… By leveraging upon the many strengths that we have, I’m sure that when we look at India@100, we will emerge as a big economy in the world,” Barhatt said. According to Barhatt, more than 50,000 MSME units in Gujarat have benefitted from one of the schemes or incentives and, in a period of just five years, an exchequer of about Rs. 9,000 crore has been disbursed as incentives. "I don't think any other state probably would be having such a large amount going into incentives. All this infrastructure, all this political will, all this bureaucratic will of the Gujarat government is poised to take Gujarat to the next level,” he added. Barhatt also emphasised on Gujarat's pivotal role as a major exporter, driving the momentum of Make in India; Make for Globe with Gujarat alone exporting and contributing to 30% of India's total exports, versus 40%, if you include exports from the ports of the state. Other key speakers at the event included Amit Kumar, Group CEO of Symphony Ltd; Mahendra Shah, National Chairman, CAIT; Rajiv Gandhi, Chairman, FICCI Gujarat State Council and CEO & MD, Hester Biosciences; Vijay Mangukiya, Regional Chairman – Gujarat Gem and Jewellery Export Promotion Council and Partner, Dhani Jeweller; Paresh Kantilal Mehta, Regional Chairman (West Region), FIEO; Apurva Shah, Treasurer, Gujarat Chamber of Commerce & Industry; Komal Kanzaria, VP of Business Development at MCX; Amit Saluja, Center Head of Gandhinagar CoE at NASSCOM; Dr. Hina Shah, Founder-Director of the International Centre for Entrepreneurship and Career Development (ICECD); and Jaimin Vasa, Former President of GCCI and President of Gujarat Chemical Association. Through the day, the event featured a series of engaging talks, panel discussions, and masterclasses covering a wide range of topics relevant to the MSME sector. These included discussions on strategies to boost MSMEs’ global competitiveness, identify the right export markets, and masterclasses on embracing Industry 4.0 technologies. The event also showcased inspiring success stories of businesses that exemplify the spirit of Make in India, Make for Globe, while highlighting the burning challenges faced by the MSMEs in Gujarat. Speaking on the most pressing challenges faced by the MSMEs in Gujarat, Apurva Shah of the Gujarat Chamber of Commerce & Industry said, “We do advocacy between the government and trade bodies or industrial units with respect to the burning issues faced daily by the industry. One of the key issues is the interest costs that have gone up and this needs to be brought down or be incentivised by any means by the government or the banks. Second, the banks, especially the PSUs, are not hands-on when it comes to small and medium exporters, where they don’t have access to big corporate CAs or large firms. And the third is, the Gujarat Industrial Development Corp have levied the charge of 18% GST for 2017-18 on GIDC land transfer; while many units have not paid because they were not aware of it and would not mind paying it, but we would want that added as an input tax credit, otherwise this will cause serious harm for the large, medium and small enterprises.” “The state of Maharashtra as a policy allows upto 150 KW; we in Gujarat have been asking for that for the past one year because our policy is for 100 KW. The consumers are ready to pay the 50 KW charge and they can do it with the same infra which we wish is implemented as soon as possible… so the units can manufacture in the same amount of land but in a larger proportion given the increase in power. And if this is possible in other states, we’re sure it’s possible here as well,” GCCI’s Shah added. The event also addressed the importance of promoting women entrepreneurship in the MSME sector. Dr. Hina Shah, Founder-Director of the International Centre for Entrepreneurship and Career Development (ICECD), shed light on the opportunities and challenges facing women entrepreneurs in MSMEs. Her session provided valuable insights and inspiration for women entrepreneurs looking to make their mark in the sector. The Ahmedabad edition of the ET MSME Regional Summit, which was presented by the EconomicTimes.com in partnership with SBI as Banking Partner, MCX as Awareness Partner, and Renaissance Ahmedabad as Hospitality Partners, marked the beginning of a series of on-ground MSMEfocused summits. The next in line are ET Make in India MSME Regional Summits scheduled to be held in Chennai on June 10 and in Hyderabad on June 24, followed by virtual mini-thematic summits through June to finally culminate in the ET MSME Day 2023 Virtual Conclave on June 27, 2023, on International MSME Day. The ET Make in India MSME Regional Summits and ET MSME Day 2023 Virtual Conclave aims to empower and build futureready MSMEs for India@100, nurturing their growth and paving the way for a vibrant and prosperous future for the Indian economy.
Source: Economic Times
Donear Group, Mumbai one of India’s leading textile manufacturers, just took the men’s fashion experience to the next level, showcasing its internationally-acclaimed product range at the Fashion Connoisseur’s Conclave 2023 in the National Capital Region (NCR) recently. The exclusive event showcased the epitome of style, luxury, and craftsmanship, where the Donear Group’s brands took centre stage. The group showcased some of the most exclusive suiting brands in men’s fashion. Among the illustrious brands featured was Ferrara, a true embodiment of Italian luxury. Ferrara captivated the discerning audience with its collection of premium suiting and jacketing fabrics. Garments were meticulously crafted, showcasing a harmonious blend of luxurious materials such as cashmere, mohair, silk, rose, and milk fibers. Moda Biella, presented its exquisite range of fabrics that epitomised timeless elegance. Drawing inspiration from the rich heritage of Biella, Italy, Moda Biella’s collection showcased a fusion of traditional craftsmanship and contemporary designs, providing a perfect balance between sophistication and modernity. Lanificio Corleone, with its legacy rooted in centuries-old craftsmanship, mesmerised the audience with its masterfully woollen and woollen-blended fabrics for all generations. Ferrino Mizzoni, known for its distinct sense of style and impeccable tailoring, showcased a collection that reflected sophistication and sartorial excellence. Eurico, 100 per cent Giza-cotton suiting brand, the epitome of luxury and craftsmanship, unveiled its collection that exuded refinement and exclusivity. OCM, a highly-trusted name in the Indian textiles industry, unveiled its remarkable collection that celebrated versatility and style. From timeless classic patterns to contemporary designs, OCM showcased a wide range of fabrics that resonated naturally with fashion-forward individuals. With a razor-sharp focus on quality and attention to detail, OCM presented a collection that epitomised elegance and comfort. Rajendra Agarwal, MD, Donear Industries Limited said, “The Fashion Connoisseur’s Conclave 2023 was a testament to the Donear Group’s commitment to excellence and innovation in the textile industry. Through brands like Ferrara, Moda Biella, Lanificio Corleone, OCM, Ferrino Mizzoni, and Eurico, we aim to showcase a diverse range of fabrics that cater to the discerning tastes of fashion connoisseurs. Each brand’s collection exudes luxury, master craftsmanship, and a keen sense of style, leaving an indelible mark on the fashion landscape of India and the world.” Established in 1977, the Donear group has diversified interests and operates multiple lines of businesses that cater to different segments of the market.
Source : Apparel Resource
Chip Bergh, the global chief executive of denim maker Levi Strauss & Co., said political stability has helped Indians stay optimistic about the future, driving consumer demand as well as investment by multinationals. “Having a stable government has definitely helped,” Bergh told ET in an interview. “It is part of what gives some of these consumers the confidence that we are living in a period of relative stability, especially relative to prior periods. In terms of investments from around the world, it creates an environment where you feel like your investments are relatively safe.” In several countries, especially the company’s US home market, consumers are battening down the hatches and pulling back on spending due to the fear of recession. Compared with that, there’s a high degree of consumer optimism in India, according to Bergh. The company said India will play a larger role in its global supply chain, not just in apparel but in other consumer businesses as well. “We believe we have got a very bright future in parts of Asia,” said Bergh, 65, sporting all-Levi’s merchandise — tan leather belt, blue trucker jacket and jeans paired with a made-in-India T-shirt. “I think we are going to see continued investment, maybe even accelerated investment in some of these markets. And I think India would be very, very high on the list.” Despite inflation, lifestyle and discretionary segments in the country have seen doubledigit growth, driven by pent-up demand, pandemic-related savings and continued casualisation at workplaces, a trend that has helped brands such as Levi’s. It helps that the brand has an iconography enshrined in popular culture, whether it’s the 501 jeans or the leather patch showing two horses trying to pull apart a pair of pants. There’s this greater resilience with consumers in some of the emerging markets as they are used to economic turmoil, political turmoil, disruption, and that builds resilience in them,” said Bergh, who spent nearly three decades with Procter & Gamble before coming to Levi’s. The San Francisco-based jeans maker, which opened its first door in India three decades ago, now has over 400 stores and competes with relatively newer entrants such as Zara and H&M in a market where youngsters are increasingly embracing western-style clothing. While fast-fashion rivals create affordable, copycat versions of the latest trends or designer wear and make them available to shoppers in double-quick time, Levi’s has a different strategy. “The thing that separates us from Zara and H&M is that we are the opposite of fast fashion — we are slow fashion,” said Bergh, who joined Levi’s in 2011, took it public, turned the brand around and made it a $6.2 billion company. “Just being self-critical, probably we don’t have enough fashion in our line today here in India. But what we have got is a brand that is highly differentiated versus others and so for the people that really want quality denim, they are still going to come to Levi’s.” Over the past decade, it has also consolidated franchisees down to two dozen from over 80. It’s opened a few company-owned and operated shops that are significantly larger than the average 2,000 square foot store size. The company posted a 58% year-on-year increase in net sales in India to Rs 1,154 crore in FY22, as per the latest available filing. However, unlike rivals that report retail sales, Levi’s revenues are not comparable because sales are accounted at wholesale prices to franchise partners. A decade ago, competition from global brands as well as a rash of local labels had resulted in Levi’s drifting off the youth radar. That’s changed, according to the company. And, it’s now one of the most democratic brands in the world, spanning all demographic segments. “Our sweet spot was kind of in the 20 to 35-year-old range. But at the same time, we have 40-year-olds, 50-year-olds coming into the store to buy Levi’s,” said Bergh. “So, we are very democratic and cross-cut across all income levels, all ethnicities, all regions of the world in all ages. And that is hard to do from a marketing standpoint, hard to sustain over the long term.” In addition, India is increasingly becoming a talent hub for the retailer globally. For instance, more than a year ago, Levi's named Sanjeev Mohanty, managing director of South Asia-Middle East and Africa for Levi Strauss & Co, based out of India, as its managing director for the US and Canada. Singh was also elevated and given additional roles in corporate strategy and global retail real estate. Levi’s sells more than three tops for every bottom in key markets worldwide. India is an exception, as people buy one bottom for every top on average. The company is trying to push more non-denim clothing and women’s apparel as it seeks to broaden its share of the consumer’s wardrobe.
Source: Economic Times
SJB MP Dr. Harsha de Silva recently addressed the growing challenges faced by Sri Lanka’s textile and apparel export sector. The former UNP State Minister told the media that with a significant year-on-year decline of 17% in April, the industry was in trouble. De Silva emphasised the crucial role the textile and apparel industry played during the economic crisis, lending crucial support to keep the country afloat and providing employment opportunities to hundreds of thousands of people. The top SJB spokesperson discussed several key points. Commenting on decreased global demand, MP de Silva asserted that the COVID-19 pandemic has led to a decrease in global demand for clothing, resulting in domestic wardrobe inventory build-up. This reduction in demand has affected the textile industry, particularly as big brands, anticipating a postCOVID surge, now face inventory build-up in their warehouses, the MP said. Referring to factory closures and competitive environment, the SJB official said that as a consequence of the challenging market conditions, several factories have closed down, and others have been forced to place their workers on furlough. The competitive landscape in the garment industry has intensified as brands dictate cheaper prices, turning it into an auction-like scenario among countries in the region, the MP said. Emphasizing the pivotal importance in long-term outlook and government initiatives, MP de Silva stressed the importance of protecting the vital textile industry, as the problem is expected to persist for another 6-12 months. He urged the government to take immediate action, including a re-evaluation and amendment of the 30% taxes on exports to alleviate the financial burden faced by exporters. Tapping into the Indian market, too, should be a priority, the MP said, while highlighting the significant increase in spending power among Indians, particularly in states like Tamil Nadu, Karnataka, Telangana, Andhra Pradesh, and Kerala. He called for measures to attract India’s growing middle class and suggested renegotiating the existing Free Trade Agreement to remove barriers that restrict exports above $8 million to India. The MP also addressed the need to seize opportunities from shifting investments. Pointing out that corporations and foreign direct investments were moving out of China and relocating to countries like Vietnam, Singapore, and India, De Silva urged the government to establish mechanisms, similar to India, to attract these investments. This would provide opportunities for the textile industry to grow and flourish, he said. De Silva’s urgent call to action underlines the importance of supporting Sri Lanka’s textile and apparel export sector during these challenging times. By implementing the proposed measures, the government can mitigate the impact of the crisis, revitalize the industry, and position Sri Lanka for long-term growth and sustainability, the former UNPer said.
Source: The Island
On their path to become circular, European fashion firms and textile suppliers encounter obstacles that a new collaboration, Cisutac, seeks to remove. With the help of 27 partners and co-funding from the European Union (EU), the initiative intends to expand the capacity for waste clothing to be reused, repaired, and recycled. “The European textile industry is already working towards a more sustainable fashion,” said project coordinator Charlotte Denis. The four-year Circular and Sustainable Textile and Clothing (Cisutac) programme aims to break down existing bottlenecks and create new, circular, and integrated large-scale European value chains. The project, which was started in September, is run by Centexbel, a research facility for textiles and plastics in Belgium. They are in charge of coordinating the entire project, creating the pilots, and supporting the Life Cycle Assessments, a technique for calculating the environmental effects of a commercial product. Sharing information and the project’s findings is the responsibility of the research platform Textile ETP. Clothing retailers like Decathlon as well as textile associations like Euratex or the fibre producer Lenzing are examples of other partner entities. Cisutac has launched three pilot projects, the first of which aims to maximise the value of pre-existing objects, particularly for reuse. The second is about avoiding mistakes, such adding the wrong materials, when separating textiles for recycling. The most recent pilot programme makes an effort to lessen the amount of manual labour and the level of staff knowledge needed for sorting, dismantling, and repair. The pilots’ scope is remarkably extensive, spanning about 90 per cent of all textile fibres, including cotton and polyester, as well as the three industries of fashion apparel, sports and outdoor wear, and workwear.
Source: Apparel Resources
Some 73% of used textiles are still destined for energy recovery or for landfilling, whereas only 1% are recycled in a closed loop. At the same time, the textiles industry is the fourth-largest CO2 emitter, according to Prof. Dr-Ing. Stefan Schlichter of Germany’s Institut für Textiltechnik – Recycling Atelier. “So where we are is not that impressive,” he acknowledged in his guest presentation on the pursuit of a circular textiles economy, delivered to the BIR Textiles Division meeting in Amsterdam on May 24. Among the many challenges for recycling, the speaker highlighted the incorporation into products of “too many different materials – often only for price reasons”. Design for recycling, upcycling, greater product durability and repair strategies were all identified by him as key building blocks for circularity. To meet these challenges, Prof. Schlichter listed the following needs: intensified research on alternative technologies; development of optimized take-back systems/concepts for textiles waste management; development of industrial-scale chemical recycling as a future add-on to maintain upcycling; development of automatic sorting; and optimization of mechanical recycling. Having calculated that between 150 and 250 additional recycling facilities would be required in the years to 2030, the guest speaker insisted: “We need governmental help to build up this industry.” Contending that a new balance between technical, economic and ecological performance was required to achieve a circular economy, the guest speaker explained that the Recycling Atelier offered “a new approach of open innovation for textile secondary raw materials”, harnessing for example: the development of new products and processes in a makers laboratory; development of concepts for the complete recycling of used textiles; industrial implementation of recycling concepts and business models; and a learning factory for training and capability build-up. In a subsequent panel discussion moderated by Alan Wheeler of the UK’s Textile Recycling Association, BIR Textiles Division President Martin Böschen of TEXAID Textilverwertungs AG in Switzerland underlined that “we need to develop more products that are easier to recycle”. And he added: “We need new applications for what we can make out of the textiles.” Josse Kunst of low-energy polyester recycling specialist CuRe Technology BV in the Netherlands underlined that coatings on fibres and poor labelling were among the factors that could hamper recycling or even render a product unrecyclable, whereas the aim of good design should be to create products suitable for “disassembly in an economical way”. He also called for increased data sharing and for the introduction of minimum recycled content requirements. Jean-François Gryspeert of Belgium-based sorting and baling systems supplier Valvan supported the idea of recycled content requirements, while also underlining the need for increased product durability and a reduction in the number of fibre blends used. Following on from an observation by Mr Kunst that now was the time to capitalize on “low-hanging fruit” to prove concepts rather than on conducting more studies, Prof. Schlichter concluded the meeting by stating: “We need to have a certain push so everyone in the chain starts to move.” This should include, he added, “defining a certain percentage of recycled content”.
Source: Recycling Magazine
The EU’s trade deficit in textiles and clothing increased to €70 billion in 2022. Textile industry association Euratex reports that for the first time in history, the European Union’s trade in textiles and clothing exceeded the €200 billion mark in 2022. This record growth in total trade is mainly due to a sharp increase of clothing imports of +36.6% in value – especially from China and Bangladesh –which far outweighs a positive export performance. As a result, the EU’s trade deficit in textiles and clothing increased to €70 billion in 2022, which is 48% higher than in 2021. With imports now reaching €140 billion, it will be a challenge to effectively control quality and compliance. This growing deficit is a cause for concern as the stated objective of the EU’s Industrial Strategy is to strengthen resilience and “strategic autonomy”. Instead, dependency has increased, and has becomes critical in certain raw materials and fibres. The deficit also challenges the European Commission’s ambition to promote high quality and sustainable textile products across the Single Market – regardless of where they have been produced. With imports now reaching €140 billion, it will be a challenge to effectively control quality and compliance and market surveillance will need to be stepped up massively, without becoming a barrier to trade, according to Euratex director general Dirk Vantyghem. “We also need to strengthen our efforts on the EU’s export performance to rebalance our trade relations with the rest of the world,” he said. “EU companies are world leaders in high-end fashion products and in technical textiles and more needs to be done to support their activities in both established and emerging markets. The ongoing free trade agreement negotiations with India, for example, should focus on improving market access and ensure “fair” competition with local companies.” The Euratex Spring Report highlights significant differences between trade in value and in volume. The EU’s export of textile products has increased by 13% in value, but actually dropped by nearly 7% in volume. This obviously reflects the very high inflation figures from last year, caused initially by rising energy prices and changing central bank policies. This in turn is leading to consumer uncertainty, resulting in low demand and gloomy prospects for the entire value chain. “This report confirms once again that the textile industry is one of the most globalised sectors of the European economy, and underlines the importance of taking that global dimension into account when designing EU and national policies,” Vantyghem said. “Failing to do so may have a devastating effect on the global competitiveness of the European textile industry. “It is essential to stabilise inflation, restore consumer confidence and ensure a level playing field for all operators in the textile industry. On that basis, European companies can prosper and retain quality jobs for 1.3 million workers.”
Source: Innovation in Textiles
