INTERNATIONAL
NATIONAL
The Government will review its production-linked incentive (PLI) scheme at the end of this month to improve utilisation in sectors that are lagging behind. A report of Reuters says that the review will focus on six sectors, including textiles, where the scheme has not been effective. Last year in April, the Government had approved 61 applications with an investment potential of Rs. 19,077 crore under the scheme for textiles. As per the information available, investment of more than Rs. 1536 crore approximately has been made so far under PLI Scheme. The PLI scheme, which is Prime Minister Narendra Modi’s main industrial policy to boost manufacturing, has so far announced incentives for 14 sectors. The news has come at the time when Indian textile and apparel industry is eagerly waiting for PLI 2 scheme, especially the small and medium level companies those could not take advantage of PLI scheme.
Source: Apparel Resources
In order to check fake GST registration, CBIC will assign a risk rating to all applications and tax officers will cross-verify the documents submitted by the applicants with municipal records. The Central Board of Indirect Taxes and Customs (CBIC) on Wednesday issued instructions to field offices after it came to light during the ongoing two-month special drive that fraudsters have misused PAN and Aadhaar numbers of people to obtain GST registrations. In the ongoing all-India drive, Centre and State GST officers have detected over 15,000 fake registrations and are initiating punitive action against the perpetrators. They are also trying to find out the mastermind who are the real beneficiaries. As per the instructions, the Directorate General of Analytics and Risk Management (DGARM) and GST Network would give a risk rating — High, Medium and Low — to each application for registration, based on data analytics and risk parameters. This will facilitate a “targeted approach in verification and processing of registration applications”, the CBIC said, adding special attention needs to be paid to the cases where a ‘high’ risk rating has been assigned. As regards the verification, tax officers will have to “carefully scrutinise” the documents submitted by applicants and “correlate and cross-verify” the same with the uploaded documents to check the authenticity of the applicant. The details of the address of the principal and additional places of business and the corresponding documents may be “closely scrutinised” to verify correctness. “To the extent possible, the authenticity of the documents furnished as proof of address may be cross-verified from the publicly available sources, such as websites of the concerned authorities such as land registry, electricity distribution companies, municipalities and local bodies, etc,” the CBIC said. The instruction said that verification of applications for registration by the proper officers is one of the most crucial steps in the direction of preventing the menace of fake or bogus registrations.”While numerous initiatives have been/are being undertaken on the policy and systems level, it is pertinent to strengthen the process of scrutiny and verification of such applications for registration at the end of tax officers,” it added.The instruction also asked field officers to check whether the registrations has been obtained on the same PAN earlier, either within the same state or in other states. In such cases, the status of the said PAN as well as the compliance record of the said GSTINs may also be checked from the portal. Where the officer finds the application to be deficient, further clarification would be sought from the applicant and if no response is received, such application would be rejected. Where the applicant has either failed to undergo authentication of the Aadhaar number or has not opted for authentication of the Aadhaar number, the GST officer would initiate the process for physical verification of the place of business.AMRG & Associates Senior Partner Rajat Mohan said these guidelines have laid out additional responsibility on tax officers to ensure that unscrupulous elements are not allowed to enter the Goods and Services Tax (GST) system.”With these guidelines, Government would be able to restrict the entry of fraudsters in the GST supply chain,” Mohan added.
Source: Financial Express
US Trade Representative Katherine Tai will on Thursday hold a virtual meeting with Union Commerce and Industries Minister Piyush Goyal. The meeting comes ahead of Prime Minister Narendra Modi‘s official State Visit to the US next week at the invitation of President Joe Biden. During the meeting, Tai and Goyal are expected to put the finishing touches on the announcements being planned for next week. Bilateral trade between India and the US has nearly doubled in the Modi government’s nine years. Last year, trade between the countries was over USD 191 billion. On Tuesday, US Chambers of Commerce President and CEO Suzanne Clark urged Modi and Biden to work towards achieving bilateral trade of USD 500 billion per annum.Speaking at the India Ideas Summit of the US-India Business Council, Clark said, “By reaching that ambitious bilateral trade target (of USD 500 billion), together we can demonstrate to the world that the future of the global economy will be anchored by democracy, free enterprise, open markets and the rule of law.” During the summit, Commerce Secretary Gina Raimondo said Modi’s State Visit would be an opportunity to elevate the governments’ commercial and strategic technology partnerships, including in defence, semiconductor supply chains, clean energy, and space.Treasury Secretary Janet Yellen, speaking at the event, said the two countries had made significant progress to strengthen bilateral ties. She also noted that the US is India’s largest trading partner. “Looking forward, I believe that we have significant potential to grow trade and investment between our nations. “Both of our countries are advancing what I call ‘modern supply-side’ policies — investing in human capital, physical capital, and science and technology to boost our long-term economic potential,” Yellen added.
Source: Financial express
Textiles and its products coming from China into India will now have to test for the presence of Azo dyes as Beijing has been excluded from the revised exempted list, according to the commerce ministry. The foreign trade policy (FTP) has a list of countries, which are exempted from testing for the presence of this dye in textiles and its articles. The UK has been included in this list, while China was removed. These countries include European Union nations, Serbia, Poland, Denmark, Australia, Canada, Japan, South Korea and the UK. The DGFT has updated the list of countries, which are exempted from testing for the presence of Azo dyes in textiles and textile articles Azo dyes are mainly used in sectors like textile, fibre and leather. Revising the list by amending an appendix of the FTP, a public notice of the Directorate General of Foreign Trade (DGFT) said the "list of countries exempted from testing for the presence of azo dyes in textiles and textiles articles is updated".
Source: Business-Standard
In recent years, the apparel, fashion, and luxury goods industries have seen an increased focus on environmental, social, and governance (ESG) initiatives. As industry leaders continue to make ESG commitments, regulators, investors, and consumers have focused on how these public commitments align with company operations. Given increasing scrutiny of ESG-related disclosures, it is important to take steps to mitigate the risks of both regulatory enforcement and private litigation when reporting on ESG challenges and achievements. This Update provides guidance on mitigating emerging ESG risks.
Measuring Up: What Is ESG? ESG commitments have three components: Environmental concerns, which often focus on how companies are promoting sustainability and stewardship of natural resources. Social concerns, which generally address how companies manage their employees, supply chains, and other labor practices. Governance concerns, which usually center on whether the actions of company leadership align with stated goals, compliance with diversity and inclusion principles, and anti-corruption activities.
Taking Stock: Regulators and ESG Regulators have focused on how ESG representations are reported and substantiated. For example, the U.S. Securities and Exchange Commission (SEC) has created a Climate and ESG Task Force to identify potential misconduct regarding ESG disclosures. The SEC has also proposed new rules to standardize climate-related disclosures. The American Apparel & Footwear Association (AAFA) submitted comments to the SEC regarding these proposed rules, asking for additional time and practical considerations for the agency to incorporate in its final rulemaking. In addition, the Federal Trade Commission (FTC) announced that it was considering revisions to the Green Guides—guidelines as to how marketers portray environmental claims. The agency also recently held a public forum on the term “recyclable” on product labels and marketing. The FTC has paid particular attention to deceptive environmental claims, including claims advertising that rayon textile products marketed as “bamboo” were made using “ecofriendly processes,” when in reality converting bamboo into rayon requires the use of toxic chemicals and results in hazardous pollutants. Back in 2010, the FTC issued warning letters to 78 retailers about this practice. More recently, the agency has issued $5.5 million in civil penalties regarding these deceptive environmental claims.
Sizing the Fit: Litigation and ESG Litigation risks regarding ESG are on the rise. As we recently reported, there have been nearly 100 putative ESG class actions in state and federal courts across the country since 2019. These cases have challenged representations such as “sustainably sourced” and “recyclable.” In May 2023, H&M prevailed in a suit challenging its “Conscious Choice” line of products. The U.S. District Court for the Eastern District of Missouri dismissed allegations on reasonable consumer grounding, holding that the court would not imply “sustainable” or “environmentally friendly” claims when these representations were not actually made by the company. Specifically, the court reasoned that “H&M states that its conscious choice garments contain ‘more sustainable materials’ and that the line includes ‘its most sustainable products,’” and “[n]o reasonable consumer would understand this representation to mean that the conscious choice clothing line is inherently ‘sustainable’ or that H&M’s clothing is ‘environmentally friendly’ when neither of those representations were ever made.” Canada Goose US, Inc. faced a putative class action challenging the company’s representations regarding the sourcing of its products. In June 2022, the U.S. District Court for the Southern District of New York held that the plaintiff plausibly alleged that the statement “ethical, responsible, and sustainable sourcing” could be misleading to a reasonable consumer and denied the company’s motion to dismiss. Allbirds successfully defended against a putative class action lawsuit challenging various environmental impact and animal welfare representations made in advertisements for wool shoes. Challenged claims included “Sustainability meets Style,” “Low Carbon Footprint,” “Environmentally Friendly,” “Made with Sustainable Wool,” and “Our Sustainable Practices.” The Southern District of New York dismissed the lawsuit, finding that the plaintiff’s allegations, which largely consisted of criticisms of the wool industry in general, did not plausibly allege that Allbirds’ descriptions of its own practices were materially misleading. Relatedly, as noted in a recent ruling by the Superior Court of the District of Columbia, purely aspirational statements cannot form the basis of a consumer protection claim unless they can be found to be inaccurate or actually misleading. In that case, which is currently on appeal, the court held that statements such as working toward “a more sustainable future for our communities and our planet” and “help develop more effective recycling systems” were “general goals,” not a “measurable standard.” Even so, diligence in reviewing these statements for accuracy and substantiation remains crucial in risk mitigation.
Tailoring Takeaways To mitigate the risks associated with ESG claims, companies might consider the following: The ways in which their policies and procedures comply with the developing disclosure standards applicable to ESG topics. The substantiation of ESG claims with appropriate documentation. The bounds of aspirational and similar ESG statements. While these mitigation strategies cannot completely eliminate ESG-associated disclosure risks, the best litigation strategy often begins with intentional investment in assessments and ongoing compliance. Formalizing, assessing, measuring, and documenting a company’s efforts to translate its ESG values into corporate policies, communications, and actions can help companies further mitigate risks associated with ESG and defend against claims that any such representations are false or misleading.
Source: The jdsupra.com
The state government of Karnataka will establish new vision groups in seven sectors to promote industrial development, announced MB Patil, the Minister for Large and Medium Industries, on Tuesday. The proposed vision groups will cover the sectors of aerospace and defence, machine tools, electronic system design and manufacturing, core manufacturing, pharma, startups (non-IT), and Auto/EV. Patil stated, “It is noted here that the state government till now had a vision group related to overall industrial development. This is for the first time that vision groups are being formed sector-wise. The vision groups will comprise industry experts, public sector officials, and academic experts. These groups, which will be institutionalized, will provide holistic guidance to the department and lead industrial progress in the right direction.” He also mentioned that an Indian Forest Service (IFS) officer in the rank of Principal chief conservator of forest (PCCF) will be appointed to facilitate resolving environment-related issues. Furthermore, the state government intends to promote manufacturing and industrialization in sectors such as future mobility, green hydrogen, food processing, textiles, and warehousing and logistics. Patil added, “The government is planning to set up a Karnataka Aerospace Technology Centre at Devanahalli R&D park to ease information dissemination, enable networks and market linkages, and create Common Facility Centre (CFC) and incubation centres. Intensive efforts are underway to pursue opportunities worth approximately Rs. 2.5 lakh crore.”
Source: Indian Express
The State government will do a study of the Micro, Small and Medium-scale Enterprises (MSMEs) in the State and take measures to enable these units cater to the emerging sectors, said Minister for Industries, Investment and Commerce T.R.B. Rajaa. “We will do a study. We will go into the details. We will see how they (MSMEs) can be supported. We need to tweak their skilling and the components (to support the emerging sectors),” he told The Hindu after inaugurating the Lulu Hypermarket in Coimbatore. The textile sector in the State can grow further by taking up production of technical textiles. “They should switch to technical textiles. We will encourage them to get into it. Even the large automobile companies that manufacture in Tamil Nadu source some of these materials from China. These should be made here,” he said. On industrial development in the western districts of the State, Mr. Rajaa said availability of land was a major challenge. The government will look at promoting joint ventures. If there are owners who do not want to part with their land, they can enter into joint ventures with the industries for development on their land. Global Capability Centres (GCCs) have huge potential for development in this region and they want space. “We also want to develop the existing Elcot land in Coimbatore. We want to create more high-value jobs here,” he said. Regarding development of the existing industries, Mr. Rajaa said the strengths of the region would be showcased at the roadshows to be conducted for Global Investors Meet. The plan is to attract investments from new regions such as Europe, he said. Managing Director of Guidance Tamil Nadu V. Vishnu said Tamil Nadu was positioning itself as a destination for advanced manufacturing. Coimbatore, Hosur and Krishnagiri were ideal locations for such industries. The Minister held discussions with members of Confederation of Indian Industry (CII), Coimbatore, here on Tuesday. K. Senthil Ganesh, chairman of CII, Coimbatore, said some of the issues raised at the meeting were related to need for land at affordable costs for industries, support to build accommodations for migrant workers, and a PM MITRA park in Coimbatore region.
Source: The Hindu .com
The long-awaited new Foreign Trade Policy (FTP), which came into effect on April 1, 2023, has set an export target of $2 trillion by 2030 and seeks to integrate India further into global value chains. The FTP has added four new ‘Towns of Export Excellence’ (TEE), in addition to the already existing 39 towns of export excellence. In a country of 766 districts, only 43 towns get fiscal incentives for global market surveys and brand promotions, setting up warehouses, and import of capital goods at zero customs duty for export-oriented production. Rather than focus on a few towns, the thrust should be on ‘Industries of Export Excellence’ (IEE). There is a need for policy rationalisation to level the playing field for export-oriented industrial sectors. For expanding foreign trade, the government must assess the demand for key products in the global market, to ensure volumes, value, scale and intensity. The new FTP should incorporate a plan to promote key sectors such as textile and apparel, bicycles, auto parts, tractor, engineering goods, hand/machine tools, and agri-products like basmati, fruits and vegetables and dairy products. India has been struggling to raise its share of global export of merchandise to 2 per cent. In the following sectors, there’s potential to boost exports.
Textile and apparel: The size of the Indian textile and apparel market is estimated at $153 billion, of which, 70 per cent is consumed domestically and the balance, exported. India’s share in the global market is 5 per cent, while China’s is 37 per cent followed by Bangladesh, at 7 per cent. The US, UAE, UK, Germany, France, and Australia are potential export markets.
Milk and dairy: India is the world’s largest milk producer, but accounts for less than 0.5 per cent of world dairy exports. Also, the country is the second-largest producer of fruits and vegetables, but has failed to export its surpluses optimally.
Auto parts: India’s export share, according to Automobile Component Manufacturers Association (ACMA), is 25 per cent of the total turnover of ₹5.10-lakh crore, and its global share is 11 per cent. Strong international demand and resurgence in original equipment manufacturers (OEMs) and after-market segments are expected to help the Indian auto component industry grow in the global market. Bicycles: China is dominating the global market and exports 60 per cent of its production of 10 crore bicycles. India is the second-largest manufacturer of bicycles, but exports only 10 lakh bicycles or 5 per cent of the total production. There’s potential to raise the country’s share in the global market in the next three years as the demand for bicycles/e-bicycles in the US, Europe and Africa are surging. Basmati: Having a 65 per cent share in the global market, India is the leading exporter of basmati rice. There is huge scope to diversify from non-basmati to basmati as also tap new markets. Sports goods: Accounting for 42.2 per cent ofi the global market, China is the largest exporter of sports goods while India’s share is a mere 0.56 per cent. There’s significant headroom in this sector, with the US, UK, Brazil, Germany, Mexico, South Africa and Argentina holding much potential. To galvanise the country into becoming an export hub there’s a need to identify products and services with export potential. The potential at the district level must be gauged by conducting outreach activities, including buyer-seller meets and trade fairs. Also, expanding exports from MSMEs and remote districts will not only have positive cascading effects on the economy but also on the livelihoods of millions of people. The writer is Vice Chairman of of Punjab Economic Policy and Planning Board. Views are personal.
Source: The Hindu Business line
India's wholesale prices dropped by 3.48% from May of last year. India's wholesale prices dropped by 3.48% from May of last year, according to government data released on Wednesday. The rate of ination fell in May 2023, primarily due to lower costs for mineral oils, basic metals, food, textiles, non-food items, crude oil and natural gas, chemicals, and chemical products. The Food Index has dropped from 173.6 in April 2023 to 172.8 in May 2023 on a monthly basis. Based on the WPI Food Index, the rate of ination dropped from 0.17% in April 2023 to (-) 1.59% in May 2023. The Fuel & Power index for this key group fell by 2.62% to 148.6 (provisional) in May 2023 from 152.6 (provisional) in April 2023. In May 2023 compared to April 2023, prices for coal (-0.67%), mineral oils (-2.01%), and electricity (-5.46%) decreased. This major group's Manufactured Products Index fell by 0.35% to 140.7 (provisional) in May 2023 from 141.2 (provisional) in April 2023, according to government data.Seven groups of the 22 NIC two-digit groupings for manufactured goods have seen price increases, while 11 groups have seen price reductions. Electrical equipment, pharmaceuticals, medicinal, chemical, and botanical items, tobacco products, wood and products made of wood and cork, leather and related products, beverages, etc. are the groups that have seen significant price increases.Basic metals, food, textiles, chemicals and chemical products, other manufacturing, etc. are a few of the industries that have had price decreases in May 2023 compared to April 2023. This major group's Primary Articles index dropped from 177.3 (provisional) for the month of April 2023 to 175.3 (provisional) for the month of May 2023, a 1.13% decrease. Mineral prices went up by 0.90 percent in May 2023 compared to April 2023. May 2023 prices were lower than April 2023 prices for food items (-0.22%), non-food items (-1.87%), and crude oil and natural gas (-7.81%). The government announced that the WPI for the month of June 2023 would release on July 14.
Source: Live mint
India and the European Union (EU) are poised to embark on the next round of negotiations for a Free Trade Agreement (FTA), laying the groundwork for a comprehensive and far-reaching agreement. Scheduled to take place in New Delhi from June 19-23, 2023, these talks, initiated last year, aim to make substantial progress and achieve a comprehensive agreement by year-end. Building on the success of the Trade and Technology Council (TTC) meeting held in Brussels last month, which showcased the burgeoning partnership between India and the EU, the Indian delegation included — Dr S Jaishankar, Minister of External Affairs; Rajeev Chandrasekhar, Union Minister of State for Electronics and IT and Piyush Goyal, Minister of Commerce & Industry. India, EU for expediting ongoing talks for trade agreementIndia’s trade relationship with the EU has been on a positive trajectory, with the EU currently holding the position of India’s third-largest trading partner. In 2021, bilateral trade in goods reached an impressive €88 billion, constituting 10.8% of India’s total trade. Similarly, India ranked as the EU’s 10th largest trading partner, accounting for 2.1% of its total trade in goods. In 2020, trade in services between India and the EU was around €30.4 billion.The resumption of FTA negotiations signifies a renewed commitment to bridge the ambitious gap that led to their suspension in 2013. Both India and the EU have acknowledged the untapped potential for deeper economic collaboration. The negotiations aim to establish a comprehensive agreement spanning various sectors, including goods, services, and investment. India, France discuss progress on India-EU trade pact Notably, ahead of the main negotiations, a dedicated digital trade track discussion is scheduled to take place from June 15-16, underscoring the growing importance of digital trade and emerging technologies in shaping the global economic landscape. This highlights the recognition of technology’s transformative power and the shared desire to leverage it for mutual benefit. The forthcoming negotiations between India and the EU for an FTA hold immense potential to boost trade, foster economic growth, and strengthen the partnership between the two entities. This moment presents an opportune time to forge deeper ties and seize untapped collaboration opportunities, particularly in the digital realm. As digital trade talks commence, the stage is set for a comprehensive and ambitious agreement that can unlock new avenues for prosperity and innovation.
Source: Financial express
INTERNATIONAL
Using advanced robotics and AI, a new automated sorting and pre-processing plant for waste textiles hopes to enable a circular economy for old clothes British fashion and textile network UKFT has announced it is leading a pioneering £4m project to develop a new, fully-integrated sorting and pre-processing plant for waste textiles, which it hopes could divert thousands of tonnes of textile waste from landfill each year. The Autosort for Circular Textiles Demonstrator (ACT UK) is a two-year project that seeks to streamline the sorting of clothes and textiles for recycling UKFT said the new approach would speed up the current "uneconomic" manual sorting of clothes and textiles which are not suitable for resale using a new highly-automated sorting and process. Adam Mansell, chief executive at the organisation, welcomed the news of the "ground-breaking" project that can tackle a waste textiles mountain that represents "a growing problem that we cannot ignore." "We're aiming to create a model to sort and prepare non-rewearable textiles (NRT) for recycling in a way that's never been done before, at scale," he added. "A national system of recycling plants could save 100,000s of tonnes of material from entering landfill. In turn, the system could generate huge volumes of material for use across the UK textile manufacturing sector." More than one million tonnes of used textiles are generated annually in the UK with estimates suggesting a third of these are non-rewearable and are currently being lost to landfill, incinerated, or exported for processing in regions with lower cost labour and lower environmental standards. The new technology promises to address many of the issues that make sorting old clothes by hand an imprecise and costly process. For example, manual sorting of textiles struggles to sort garments by fibre composition or detect garments for pre-processing such as zip and trim removals, UKFT explained. The new project aims to improve sorting processes through the use of state-of-the-art optical scanning, robotic, and AI technologies that can "create a world-class blueprint that integrates the latest technologies and can be deployed across the UK". The project is being funded by Innovate UK and is part of a broader Circular Fashion Programme supported by Innovate UK, the Arts and Humanities Research Council (AHRC) and the Natural Environment Research Council (NERC), all of which are part of UK Research and Innovation (UKRI). "An automated sorting and pre-processing plant for non-rewearable textiles will bring us a step closer to commercialised fibre-to-fibre recycling in the UK, and a step away from our reliance on virgin raw materials," said Harriet Lamb, chief executive of WRAP. "Textiles is fourth behind housing, transport, and food in terms of the environmental damage it causes, and this important consortium will help lighten the footprint left by our clothes."
Source: Business Green
Albany International Corp. (“Albany” or the “Company”) announced today it has entered into a definitive agreement to acquire privately held Heimbach Group (“Heimbach”), a supplier of paper machine clothing, in an all cash transaction valued at approximately €153 million, including the assumption of €21 million net debt. The transaction has been unanimously approved by the Albany Board of Directors and Heimbach’s shareholders. It is expected to close in the second half of 2023, subject to customary closing conditions and regulatory approvals. Albany will fund the transaction with cash held outside the United States. Headquartered in Düren, Germany, Heimbach is a global supplier of paper machine clothing for the production of all grades of paper and cardboard on all machine types as well as high-tech textile products used in a variety of sectors, such as the food processing, chemicals, construction materials and automotive industries. The Company has approximately 1,200 employees and nine production facilities across Germany, China, Spain, Switzerland, the United Kingdom, Belgium and Italy. Heimbach had 2022 annual revenue of approximately €161 million. “The acquisition of Heimbach is an exciting opportunity to create significant value for our shareholders as well as for our customers as the partner of choice,” said Bill Higgins, President and CEO of Albany. “With Heimbach, we gain increased scale and complementary technology, while broadening our geographic footprint to efficiently serve markets in Europe and Asia. This transaction also provides an opportunity to leverage Albany’s expertise to drive meaningful margin expansion in Heimbach’s operations and cash flows that can be reinvested in high-growth areas of the Company. We look forward to working with the Heimbach team and welcoming them to Albany.” Marco Esper, CEO of Heimbach Group, said, “In Albany International, we found a likeminded partner who shares our commitment to best-in-class customer service and advancing modern paper production. Together, we will leverage our collective product and technology portfolios to become an even better provider to our customers. I am incredibly proud of everything that Heimbach and our team have accomplished and look forward to working closely with Albany’s leadership to reach even greater success.”
“Heimbach is a solid addition to our company,” said Daniel Halftermeyer, President of Albany’s Machine Clothing business. “Their operations are an excellent complement to Albany’s existing network of forward-deployed manufacturing assets. Together, we look forward to providing our customers with even more value in terms of logistics, delivery capability, advice and service quality.”
Strategic and Financial Benefits Enhances Albany’s Scale and Geographic Footprint: Heimbach’s strength in central European markets is an excellent fit with Albany’s northern European presence. Heimbach also brings additional production capacity in Asia, enhancing Albany’s ability to serve clients throughout the region. Provides Complementary Technology: In addition to its broad offerings in paper machine clothing, Heimbach brings technologies that support Albany’s differentiation and ability to provide customers with optimized, application-specific solutions. Leverages Albany’s Industry-Leading Operating Expertise to Drive Margin Expansion: Albany has identified numerous supply chain, logistics, insourcing and other operational opportunities that it expects will provide significant margin expansion in Heimbach’s operations. Provides Attractive Financial Returns: The acquisition is expected to be accretive to Albany’s earnings per share and cash flow beginning in year two.
Source: Textile World
Most clothing brands are doing a lousy job on the environmental front, and most consumers aren't doing their part either, a new report from consulting firm Kearney concludes. Why it matters: Despite much chin music about the environmental sins of the fashion industry — how it's a major polluter and carbon emitter but wants to do better — progress is slow toward the goal of "circularity," in which a garment is repeatedly reused, repaired and recycled before it's discarded.
Driving the news: In its third annual "Circular Fashion Index," Kearney assessed 200 brands and found a profound lack of urgency on climate goals. Clothing makers are still "busy pushing more and more products into the market" — and incinerating unsold inventory rather than giving it a new life. Manufacturers still lean heavily on virgin materials, and don't educate consumers about responsible ways to get rid of used garments. What they're saying: The "clothing drop-off and collection infrastructure is underdeveloped," Kearney concludes. And the process of sorting used clothes is "complex and expensive because fashion products are not designed to be disassembled into subcomponents for re-use." Consumers get a share of the blame for not exploring donation, recycling, repair options, Kearney says. "The resale thing has become very popular, and for obvious reasons — because you can make money off that," said Brian Ehrig, a Kearney partner and co-author of the report. Where it stands: A few brands are the "notable exceptions," Kearney said — doing the right thing when it comes to sustainability. Its top 10 were Patagonia, Levi's, The North Face, OVS (a casual-trendy Italian brand), Gucci, Madewell, Coach, Esprit, Lululemon Athletica, and Lindex (a casual-trendy Swedish brand). Madewell got a shoutout for accepting used jeans in its retail stores and selling used or upcycled clothing through its "Madewell Forever" program. Coach earned praise for its "Coachtopia" sub-brand, which sells items made with recycled or recyclable materials. Kearney didn't name the lower-down performers, lest it offend a client.
Not much has changed or improved between last year's report and this year's, Ehrig said. "There’s a lot more discussion about circularity than there is significant, measurable improvement," he said. "The companies that were already doing it well are primarily the ones that are still doing it well." There's no financial incentive for "fast fashion" companies — which make cheap, disposable clothes — to change their ways. Used clothes from first-world countries are causing huge environmental harm in places like Ghana, which the Guardian recently labeled "fast fashion's dumping ground." How it works: Kearney used 7 criteria to size up the clothing makers: Share of garments made from recycled fabrics. Repair and maintenance availability. “Circularity” in brand communications. Detail/accessibility of care instructions. Breadth/depth of secondhand sales. Breadth/depth of rental services Availability of drop-off locations for worn clothing. The big picture: While many big-name brands have signed on to the Fashion Pact — a 4-year-old environmental initiative aimed at lowering the industry's climate footprint — there's still a lot of daylight between the group's goals and individual companies' actions Another group called the Sustainable Apparel Coalition aims to prod clothing makers in the right direction. Yes, but: These goals are difficult, even for companies that say they're trying to do the right thing. A case in point is Gucci. While it's owned by Kering — whose CEO initiated the Fashion Pact — it recently had to dial back its environmental goals after finding it hard to live up to a carbonneutral pledge. By the numbers: About 15% of used clothes and other textiles in the U.S. get reused or recycled, and 85% go to a landfill or incinerator, per the Commerce Department's National Institute of Standards and Technology. "Only 7% of brands regularly employ recycled materials, 54% of companies use them just for a few selected items or product features, while 39% use no recycled materials at all," per WWD's report on Kearney's findings. What's next: Change may be slow, but it's becoming more visible. Companies like Circ, a startup textile recycler, sell materials back to retailers like Patagonia. Thrifting has become a way of life for a growing number of shoppers. https://www.axios.com/2023/06/14/clothing-recycling-donation-sustainability-fashion-industry-garments 5/8 Clothing brands like Reformation are touting their commitments to circularity. The bottom line: "There are really two sides to this," Erhig tells Axios. "We need the brands to be doing more, and we need the consumers to be doing more as well.
Source: The axios.com
Seth Casden, CEO and co-founder of Hologenix®, the materials science company whose flagship product CELLIANT® enhances textile-based products with bio-responsive properties, is not only committed to empowering his employees with intellectual success but future generations as well. The company he leads is focused on innovation and technology and funds employees in continued learning and skill development, but Casden also reaches beyond the corporate sphere to support education and exploration. “I started my career in private equity, but my education and interests lie at the intersection of technology, sports, health and wellness. This led me to the natural blend of IRgenerating minerals that would become CELLIANT and the founding of Hologenix,” said Casden. “I want future generations to be able to realize their potential, and to have a thirst for innovation and a dedication to making the world a better place.” To date, the tech entrepreneur, industry thought leader, triathlete and world traveler has endowed a teaching chair, delivered an inspiring commencement address, provided scholarship funds and sponsored a groundbreaking expedition to the Galápagos to develop a blueprint for protecting marine ecosystems across the planet. The Dr. William Turner Levy Endowment at his alma mater, Viewpoint School, in Calabasas, Calif., was established by Casden in 2017 and honors the late provost and longtime teacher who inspired generations for a lifetime of learning. It recognizes a faculty member every two years for their exemplary work with students. In addition to the stipend for the honorary teaching chair, the endowment provides resources for the Dr. Levy Chair to offer students a memorable experience that might not otherwise be possible. This is in keeping with Dr. Levy’s belief in the importance of going out in the world and experiencing life as he had done as an educator, author and confidant of luminaries such as Eleanor Roosevelt, T.S. Eliot and Frank Capra. Last year, Casden delivered the commencement address at Viewpoint, where he encouraged students to develop resilience and to take ownership of their happiness. Having traveled to almost every part of the globe for athletic pursuits and business (he met a key early investor in Hologenix while climbing Mount Kilimanjaro), Casden’s commitment to environmental conservation is evidenced by his support of the international team of explorers and scientists working in the Galápagos to protect marine life. Other causes Casden champions include Plan International USA, which supports children and young women in overcoming oppression and gender inequality, and the ASLEAD Institute, committed to developing leadership skills within family, church, community, local government and Kenya as a whole. He has also sought opportunities to travel and volunteer at charitable organizations in Sri Lanka that serve a girls’ orphanage, a special needs school and an assisted living home. Similar to his dedication to Hologenix and bringing health and wellness benefits to people worldwide through bio-responsive textiles that emit infrared energy, Casden wants to empower the next generation with the education and skills to navigate the future and preserve the environment.
Source: Textile World
