INTERNATIONAL
NATIONAL
A number of reforms have been announced by the Federation of Surat Textile Traders Association (Fostta) to solve the many problems plaguing the city’s textile trade. The city, one of the largest global hubs for the production of man-made fabrics, has not yet established a recognised body of textile traders. The federation, which was founded about 38 years ago, has yet to properly register as a trust, a charity organisation, or even a business. In the most recent elections, the president of Fossta, Kailash Hakim, along with 40 other board members, were chosen. Regular elections were not held because Fostta lacks any governing regulations since it is not a registered entity. It began having elections in 2001, although up until that point, its operations were managed by in-charge office bearers. In the meantime, the organisation received complaints about non-payment for supplied items from a number of textile retailers. In the previous few months, 247 complaints totaling around Rs. 200 crore in default were submitted to Fostta. To stop additional payment fraud, Fostta is also preparing a list of frequent defaulters that will be distributed to other municipal textile trade associations.
Source: Apparel resources
Discounting their optimism, trade experts and firms from key export-oriented industries now believe that India’s merchandise exports, in value terms, may stay flat in FY24 as compared to FY23, mainly due to slowdown in global demand and fall in commodity prices. “Because of the high inflation and rising interest rates, there is a slowdown in demand for several value-added goods including the consumer goods,” said Ajay Sahai, director general, Federation of Indian Export Organisations (FIEO). “I feel we will still touch around $450 billion in merchandise exports in FY24 (same as last year),” Sahai said. FIEO had in June pegged gods exports to touch $500 billion in the current fiscal year.In the first five months of the current fiscal year, India’s merchandise exports contracted 11.9% year-on-year to $172.95 billion, according to provisional figures released by the commerce ministry. Though exports shrank for the seventh straight month in August, the rate of contraction came down from double digit levels to 6.86% in the month. To reach $450 billion, exports in September-March will have to rise 9.1% year-on-year. In September-March FY23, merchandise exports had fallen 1.6% on year. “Commodity-linked export values, such as those for petroleum products, are expected to contract year-on-year both on account of lower prices and volumes,” said Amruta Ghare, economist, Barclays. “Exports of commodities which are more sensitive to global demand–ready made garments, textile yarn, gems and jewellery–have also shown double digit contraction so far,” she said. Out of 30 major commodities, exports of 18 have contracted year-on-year in the April-August period. The exports of petroleum products have contracted 27.4% during the period, and that of engineering goods have contracted by 4.6%. Both these products collectively constitute 44% of total merchandise exports. Exports of organic and inorganic chemicals and gems and jewellery have also contracted by 15.5% and 26.2%, respectively, in April-August. A combination of both–depressed commodity prices and slowdown in external demand–caused exports to falter this year; whereas, last year, high commodity prices aided goods exports. In the first five months of FY24, the price of India’s crude oil basket has averaged $80.1 a barrel, while in the same period last year, it had averaged $106.3/bbl. India’s Wholesale Price Index (WPI)-based inflation, which measures price pressures of commodities at the input level, has averaged (-)2.09% in April-August; whereas, in the first five months of FY23, WPI inflation had averaged 14.96%. Farida Group’s (India’s top leather exporter) Chairman M Rafeeque Ahmed said that in the current year, exports of leather products would contract by about 15-18%. “The orders that have got till March, it is 15% lower than the orders we received last year…we export to US, EU, UK and Australia. We have witnessed a massive contraction in export orders from all these regions, particularly US,” Ahmed said. Electronic goods exports, however, appear to be a bright spot, having grown 35.2% in April-August. Experts believe the production-linked incentive (PLI) scheme to have caused the rise in electronic goods exports. “Exports part of the PLI schemes (electronics) have shown robust growth so far, and are likely to be higher than FY23 levels,” said Ghare. Going forward, the sharp contraction in exports is expected to reverse in H2 FY24 as prices of commodities, particularly crude, have started to rise.On Monday, crude was trading at over $94 a barrel amid supply tightness in the market after Saudi Arabia and Russia extended production cuts. “If you notice, the decline in exports is being arrested…probably from October, we may see a rise in exports,” FIEO’s Sahai said. Bank of Baroda Chief Economist Madan Sabnavis said, “there is a chance that things may change in the second half and we would be able to grow our exports marginally by around 2% (in FY24).”
Source: Financial express
In the ever-evolving world of international trade, Indian small businesses are increasingly exploring opportunities beyond borders. However, the process of import customs clearance presents challenges that can be daunting for those new to the field. Extensive experience and specialized knowledge are crucial for providing effective import clearance solutions to small businesses. Here are some best practices that can empower small businesses to navigate import customs clearance with ease.The ambitious journey into international trade begins with the acquisition of the Importer Exporter Code (IEC) from the Directorate General of Foreign Trade (DGFT). This code is the identity of your business and a prerequisite for engaging in import-export activities. It acts as your passport to access global markets.
The art of valuation
Customs valuation is akin to strategically pricing your products in a global marketplace. It’s not just about numbers; it involves careful consideration that can impact your bottom line. Precise customs valuation is pivotal as it determines the duties and taxes applicable to your imported goods. Transparency in declaring the accurate value of your products is essential to avoid inconsistencies and ensure compliance.
Decoding Harmonized System of Nomenclature (HSN) Codes
Just as language facilitates effective communication, the HSN code enables the proper classification of goods. This code serves as a bridge, connecting your product to the corresponding customs duties and ensuring precise taxation. Referring to the Indian Customs Tariff is the key to unlocking the correct HSN code for your goods.
The orchestra of documentation
Visualize the customs clearance process as a symphony, with various documents playing harmoniously. The bill of entry, commercial invoice, packing list, airway bill, or bill of lading—these documents are the musical notes in the symphony of imports. Consistency, accuracy, and thoroughness in handling these documents ensure a seamless customs clearance process.
Capitalizing on preferential tariffs and FTAs
In the realm of imports, discounts extend beyond sale events through preferential tariffs and Free Trade Agreements (FTAs). These are your hidden strategies for optimizing costs. Conduct research to identify preferential agreements applicable to your goods; this can lead to substantial savings on duties and taxes, fostering your competitiveness in the global market.
Navigating the tax landscape
Taxes are an integral aspect of any business venture, including imports. Grasp the intricacies of customs duties, Goods and Services Tax (GST), and other relevant charges. Additionally, explore exemptions and concessions; some goods might qualify for reduced taxation or complete exemption.
Customs brokers: Your trusted guides
For small businesses, customs procedures can often resemble a labyrinth. Customs brokers are the guides who help navigate this complexity. These experts are your companions through the maze of forms, regulations, and requirements. A licensed customs broker acts as a knowledgeable guide, leading you smoothly through the journey of hassle-free customs clearance.
Unveiling the communication channel for smooth port and customs interaction
The bill of entry functions as your entry ticket to customs clearance. It’s a formal declaration of the goods you’re importing and a commitment to pay the applicable duties and taxes. This document must be submitted via the Indian Customs Electronic Data Interchange (EDI) system. EDI has been the communication channel between Indian Customs and importers. At every stage, right from filing the bill of entry to payment of duties, inspection and ensuring other compliance, the data is interchanged through the Customs EDI portal. Successfully passing these evaluations reflects your dedication to adhering to regulations, paving the way for the final clearance of your goods.
Staying ahead of regulatory changes by mastering record-keeping and compliance
Staying informed about alterations in regulations, tariff updates, and trade policies is crucial. Regular consultation with the Central Board of Indirect Taxes and Customs (CBIC) and the DGFT ensures your readiness to adapt to evolving customs landscapes. Maintaining meticulous records of bills of entry, invoices, shipping documents, and correspondence becomes a powerful shield against potential audits and inquiries.
Participative Government Agencies
Other than Customs, there are various authorities who play a pivotal role in allowing the imports. The importer should be aware of the respective agencies and their compliance requirements in order to experience a seamless clearance process. Engaging a logistics provider for import customs management in India offers a plethora of advantages for small businesses. Partnering with these experts can streamline your import journey, making it more efficient and less daunting. Logistics providers often employ licensed customs brokers who are adept at navigating intricate customs regulations.These experts handle complex paperwork, ensuring accuracy, compliance, and minimizing the risk of errors and delays. Then, there are end-to-end logistics service providers who offer customs clearance as one of their services. Therefore, partnering with an end-to-end logistics company provides small businesses with peace of mind. Knowing that experts are managing customs clearance allows business owners to focus on their core operations. Import customs clearance, often viewed as a challenging hurdle, holds the potential to be a stepping stone for Indian small businesses towards global growth. By embracing these best practices, import customs clearance transforms from a daunting challenge into a promising opportunity—an opportunity to establish your presence in the international market and achieve excellence in cross-border trade.
Source: Financial express
Amid weakening global prospects, the Indian economy is gaining strength led by domestic drivers – private consumption and fixed investment, with strong public sector capital expenditure – and supply responses are improving, according to the Reserve Bank of India’s (RBI’s) State of the Economy report released on Monday. The report, however, flagged “a new risk to global financial stability”. Crude oil prices are hovering above $90 per barrel, challenging 10-month highs, due to Saudi Arabia and Russia extending voluntary production cuts to the end of 2023. “The strength of the US dollar on safe haven demand is also making crude prices higher. Global inflation is once again under siege as deep deficits in global oil balances become persistent unless global demand is hit by a sharp economic downturn,” the article authored by a team led by RBI Deputy Governor Michael Debabrata Patra said. “Dispelling this global gloom, the Indian economy is picking up steam and strength.” India’s retail inflation, which softened in August from the previous month’s peak, is expected to trend down further in September, it said. “As in the case of the upswing, the ebbing was driven by a reversal in the prices of vegetables. Hearteningly, the correction is not complete,” it added. Headline inflation, as measured by year-on-year (Y-o-Y) changes in the Consumer Price Index (CPI), moderated to 6.8 per cent in August from 7.4 per cent in July. This, however, was still outside the RBI’s comfort band of 2-6 per cent. Food inflation fell to 9.2 per cent Y-o-Y in August from 10.6 per cent in July. In terms of sub-groups, inflation in vegetables softened sharply, though it remained elevated. There are early indications of correction in a broad range of vegetable prices. Turning to the economic growth trend, the RBI report said: “India’s G20 Presidency and its outcomes with the ethos of Vasudhaiva Kutumbakam as the vision of global progress assume significance in an environment where global economic activity is experiencing a loss of momentum with a dichotomy in macroeconomic conditions across regions.” Real gross domestic product (GDP) growth for the first quarter of 2023-24 came in at 7.8 per cent, matching an assessment presented in the August edition of the report. This was led by domestic drivers – private consumption and fixed investment – which offset “the negative spill from net exports”. In the second quarter, available indicators point to a gain in quarter-on-quarter (q-o-q) momentum on the back of domestic demand. Clothing and lifestyle retailers and shopping malls are experiencing a sharp recovery in sales across price points in the past few weeks. This has raised hopes of a pick-up in demand through the rest of the festival season that began with Raksha Bandhan and Onam, and cheers for discretionary retail spending. On watch are electronics and automobiles, which may be the next segments to attract festival spend. There are also indications that rural demand for fast-moving consumer goods (FMCG) has swung back into positive territory after being under pressure for over a year. A key lead indicator will be how inflation evolves, with expectations of a sharp decline in September, on top of the August ebbing, fanning optimism. Looking ahead, India’s consumer market is expected to become the world’s third largest by 2027, with household per capita spending outpacing all other developing economies in Asia, it said. On the investment side, capex by large central public sector enterprises (CPSEs) was strong at above 42 per cent of the annual target. This was in keeping pace with the emphasis on capital spending by the central government. Highways, the petroleum sector and railways were leading the surge in CPSE capex in the first five months of 2023-24. States have also boosted their capital outlays by close to 50 per cent YoY. On the other hand, the private corporate sector is reported to be continuing to go slow on capex, although sectoral improvements are also being reported, based on projects sanctioned by banks/financial institutions, the report said.
Source: Business-Standard
Prime Minister Narendra Modi has said that India emerging as the fastestgrowing large economy is no accident as its simple, scalable and sustainable solutions have empowered the vulnerable and the marginalised to lead the country's development story. In a write-up in the Information and Broadcasting Ministry's e-book, 'People's G20', Modi said as the G20 president India pledged to make the global table larger, ensuring that every voice is heard and every country contributes. "I am positive that we have matched our pledge with actions and outcomes," he said. India will retain the presidency till November and Brazil will take over from December. For India, the G20 presidency is not merely a high-level diplomatic endeavour, Modi said. As the "mother of democracy and a model of diversity" it opened the doors of this experience to the world. Today, accomplishing things at scale is a quality that is associated with India and the G20 presidency is no exception, he said. "It has become a people-driven movement. Over 200 meetings have been organised in 60 Indian cities across the length and breadth of our nation, hosting nearly 100,000 delegates from 125 countries by the end of our term. No Presidency has ever encompassed such a vast and diverse geographical expanse," he said. It is one thing to hear about India's demography, democracy, diversity and development from someone else, it is totally different to experience them first-hand, he said, expressing confidence that G20 delegates would vouch for this.
Source: PTI News
The tense diplomatic relations between India and Canada are unlikely to impact trade and investments between the two countries as economic ties are driven by commercial considerations, according to experts. Both India and Canada trade in complementary products and do not compete on similar products. “Hence, the trade relationship will continue to grow and not be affected by day-to-day events,” Global Trade Research Initiative (GTRI) Co-Founder Ajay Srivastava said. Certain political developments have led to a pause in negotiations for a free trade agreement between the two countries. On September 10, Prime Minister Narendra Modi conveyed to his Canadian counterpart Justin Trudeau India’s strong concerns about the continuing anti-India activities of extremist elements in Canada that were promoting secessionism, inciting violence against its diplomats and threatening the Indian community there. India on Tuesday announced the expulsion of a Canadian diplomat hours after Canada asked an Indian official to leave that country, citing a “potential” Indian link to the killing of a Khalistani separatist leader in June. Srivastava said these recent events are unlikely to affect the deep-rooted people-to-people connections, trade, and economic ties between the two nations. Bilateral trade between India and Canada has grown significantly in recent years, reaching USD 8.16 billion in 2022-23. India’s exports (USD 4.1 billion) to Canada include pharmaceuticals, gems and jewellery, textiles, and machinery, while Canada’s exports to India (USD 4.06 billion) include pulses, timber, pulp and paper, and mining products. On investments, he said that Canadian pension funds will continue investing in India on grounds of India’s large market and good return on money invested. Canadian pension funds, by the end of 2022, had invested over USD 45 billion in India, making it the fourth-largest recipient of Canadian FDI in the world. The top sectors for Canadian pension fund investment in India include infrastructure, renewable energy, technology, and financial services. Mumbai-based exporter and Chairman of Technocraft Industries Sharad Kumar Saraf said the present frosty relations between India and Canada are certainly a cause for concern. “However, the bilateral trade is entirely driven by commercial considerations. Political turmoil is of a temporary nature and should not be a reason to affect trade relations,” Saraf said. He added that even with China, India has acrimonious relations but bilateral trade continues to remain healthy. “In fact, bilateral trade is an effective tool to improve political relations. India must make special efforts to increase our bilateral trade with Canada,” Saraf said. India and Canada have a strong education partnership. There are over 200 educational partnerships between Indian and Canadian institutions. In addition, over 3,19,000 Indian students are enrolled in Canadian institutions, making them the largest international student cohort in Canada, according to GTRI. According to the Canadian Bureau for International Education (CBIE), Indian students contributed USD 4.9 billion to the Canadian economy in 2021. Indian students are the largest international student group in Canada, accounting for 20 per cent of all international students in 2021. Benefits of educational partnerships are mutual and hence the current situation may have no impact on the relationship, Srivastava said.
Source: Financial express
Tirupur Stakeholders Forum (TSF), an initiative comprising of Tirupur Exporters Association, Unions, NGOs and Brand Ethics Working Group will be relaunched soon under the chairmanship of V. Elangovan, vice president of Tirupur Exporters Association (TEA). TSF also has representation of Assistant Commissioner of Labour, Labour Department, Tirupur, and UN Women Wing and it is being relaunched for the welfare of apparel industry’s workers and improve working conditions and help the Tirupur cluster to become more sustainable. TEA is also taking efforts to promote manufacture of man-made fibre (MMF) products and sustainability, as product diversification is needed to fulfil global demands. The TEA will conduct awareness programmes so that its members are able to increase their share in MMF products. “Environment and Sustainability Governance (ESG) is gaining focus and the TEA is discussing with experts to understand the procedures so that its members can adopt the required practices.” Said K M Subramanian, President, TEA. Due to subdued sentiments at the international level, Tirupur knitwear exports in 2022-2023 declined to US $ 4.29 billion as against US $ 4.50 billion recorded in 2021-2022. As such, the association is taking various step to support the industry and increase the export.
Source: Apparel resources
India‘s leading textile company Arvind Ltd., will invest around Rs. 100 crore in Uttar Pradesh (UP) and will set up an apparel facility in Varanasi. The initiative is expected to create direct employment for 2000 women. This is the first-ever manufacturing operation of the Ahmedabad-based company in Uttar Pradesh. Punit Lalbhai, VC & ED and Kulin Lalbhai, ED of the company also had a courtesy meeting with UP CM Yogi Adityanath. They apprised the CM about this upcoming garmenting unit. This project was finalised in the beginning of the year during the UP roadshow in Ahmedabad in which ministers and senior officials of the UP had discussion with the company’s representatives. With a revenue of Rs. 8,382 crore, Arvind Ltd., is into the textile as well as advance material business. Apparel Resources has approached the company for more details of this project and the same will be updated here.
Source: Apparel resources
INTERNATIONAL
ITM Exhibitions, which is the address of the latest innovations in textile technologies adds a new one to its records thanks to the number of exhibitors and visitors every year. The new motto of ITM Exhibition, which has been pioneering innovations and shaping the sector and brands since its foundation is “Discover the Future”. ITM 2024 Exhibition, which will offer a unique exhibition experience to its exhibitors and visitors with new trade connections and world launches of the latest technologies; will offer the opportunity to discover the technologies that will shape the future of textile. The countdown has begun for ITM 2024 Exhibition, one of the most important meeting points of the world in the field of textile machinery. When the dates show June 4-8, 2024, Istanbul Tüyap Fair and Congress Center will open its doors to host “ITM 2024 International Textile Machinery Exhibition”. Preparations are in full swing for this great organization where textile technology leaders will bring the latest products together with their visitors for the first time.
ITM 2024 Video Won Great Recognition The ITM team focused on advertising and promotional activities in order to host thousands of visitors and sector investors from all over the world at the ITM 2024 Exhibition, which halls were almost full due to intense participation demands. In this context; ‘ITM 2024 Video’, which tells the story of the increasing success of ITM exhibitions over the years and which is eagerly awaited by the whole sector, has recently been published. The video, which was published in Turkish and English on social media accounts such as YouTube, LinkedIn, Instagram, Twitter and Facebook, was viewed by more than 30 thousand people in total and received great appreciation from the viewers. “Discover the Future!” in the video prepared with the main theme “Discover innovations, technologies, the future…” and including clues about the ITM 2024 Exhibition, was revealed as follows: The textile sector is among the souls of the economy with its production capacity, export volume, and contribution to employment. Many R&D centers around the world and in Turkey are breaking new ground by taking their work and innovations one step further every day. Textile technology leaders is developing technologies that consume less water and energy, are easy to use, are software and automation supported, keep up with trends and respect the environment while doing so. Industry stakeholders, especially textile manufacturers, are now curious about the answer to this question: ‘What will be the future of the textile industry, which is digitalizing, complying with sustainability principles, and signing groundbreaking innovations? This question will be answered at ITM 2024, which will host the latest innovations, technologies, artificial intelligence-supported machines, software and design excellence devices in textile machinery. That’s why the motto that best defines ITM 2024 was ‘Discover the Future’.
More than an Exhibition: ITM 2024 In the video, where the slogan “More than a exhibition…” is highlighted, you will also find tips that will help you discover the future of textiles at ITM 2024. ITM 2024 Exhibition, the address of all innovations in the world textile industry, will host a unique experience with the diversity of exhibitors, the visitor profile, and the business volume it creates. The company owners, managers, employees and sector representatives visiting ITM 2024 will have the opportunity to see the latest technological innovations for the first time and “touch the firsts”. The company owners, who will get information from experts about the technologies they will use in their factories, will develop their products and direct their investments.
Reach Your Products to Hundreds of Countries in 7 Continents With more than 1200 exhibitors presenting hundreds of innovations and followed by tens of thousands of investors, the participants of this big meeting will go beyond their expectations and dreams. The participants who will introduce their brand new products to the whole world will get beyond the limits by reaching hundreds of countries from seven continents. The companies that will participate in the ITM 2024 Exhibition, where a billion euro business volume will be realized, will have the opportunity to be in cooperation with the pioneers of the world textile industry. The visitors to ITM 2024, where innovations from every field of textile from weaving to knitting, yarn to digital printing, finishing to denim will be exhibited; will discover innovative, nature-protecting, pioneering technologies in digitalization for a sustainable future. After ITM 2022, which included 102 countries, 1280 companies and 64,500 professional visitors, ITM 2024 will break records with both the number of exhibitors and visitors.
The Meeting Point of ITM: Istanbul- The World’s Most Charming and Strategic City ITM, always the show of firsts in textile technologies, will take the stage in June 2024 in Istanbul, the world’s most strategic city that inspires cities in many fields such as trade, fashion, art and culture. The fact that Istanbul, the meeting point of Europe and Asia, is located at the center of world trade, rich accommodation facilities, ease of transportation and the visa-free requirement make ITM Exhibitions even more inviting for visitors. The investors from both European and Middle East, North Africa, Turkic Republics and Balkan countries will be able to reach Istanbul after a 3-hour flight and visit ITM 2024 Exhibition and make business contacts. The exhibitors and visitors coming from all over the world to the ITM 2024 Exhibition will also take a cultural journey from the past to the present by visiting this ancient city.
Source: Textile world
Durst Group, manufacturer of advanced digital printing and production solutions, has acquired Aleph SrL, a pioneer in sustainable digital solutions for textiles and interior and exterior decorations. With this strategic move, Durst Group further enhances its position in water-based and sustainable printing technologies. For Durst Group, the acquisition also serves as a bridge to Como, Italy, the center for textile design and high-quality applications. Established in 2000 in Lurate Caccivio (Como), over the last 20 years, Aleph has transitioned from a software house and distributor of textile consumables to an independent manufacturer of innovative machines for digital water-based printing. In 2017, Wise Equity entered Aleph’s capital with the Wisequity IV fund, alongside the three historical entrepreneurs Alessandro Manes, Roberto Manes, and Roberto Temperini, to support the progressive internationalization journey, with the goal of positioning itself in special applications in both the textile industry and adjacent sectors such as billboard printing. Today, the company generates more than 60 percent of its revenue abroad in more than 20 countries. “We are delighted to welcome Aleph into the Durst family,” said Christoph Gamper, CEO and co-owner of Durst Group. “Their expertise in sustainable, water-based applications, their software for high-end textiles, and their creative solutions for water-based poster printing align perfectly with our vision of pushing the boundaries of digital printing technology. Together, we will strengthen our market position, expand our product portfolio, and enhance value for our global customers.” In recent years, markets for digital printing technologies with water-based ink applications have experienced rapid growth, driven by increasing demand for environmentally friendly and customizable products. To meet this market trend, not only high-performance printing systems with eco-friendly ink systems are necessary but also extensive process knowledge and integrated software solutions, which both companies aim to combine optimally through this merger. “Collaborating with Durst Group marks an exciting new chapter for Aleph,” said Alessandro Manes, CEO of Aleph SrL. “Our shared passion for technological innovation, the pursuit of excellence, and the commitment to true sustainability define this collaboration. Together, we have the opportunity to make significant advancements in the digital textiles, exterior, and interior decoration sectors.” “We are very proud to have accompanied Aleph during these years of transformation from a distributor to a machinery manufacturer,” says Valentina Franceschini, senior partner at Wise Equity. “today among the leaders in sustainable innovation, Aleph has achieved significant goals in terms of organization, product range, and technological development, and we are confident that Durst represents the ideal partner to continue the growth journey.” The strategic acquisition aims to leverage synergies between the two companies by combining Durst Group’s global presence and extensive procurement network with Aleph’s expertise in sustainable digital solutions — both machines and software — for textiles and decoration. This seamlessly aligns with Durst Group’s strategy to diversify its portfolio and meet the evolving needs of its customers across various industries. Both Durst Group and Aleph are committed to ensuring a smooth transition for their customers, partners, and employees during the integration process.
Source: Textile world
Despite a tepid demand environment in H1 FY2024, the end demand is expected to improve in H2 FY2024, boosting revenues. The retail apparel brands in the US and the EU, which together account for close to 55 percent of global apparel trade, are expected to liquidate the high inventory build-up of FY2023 and book their orders for the Spring/Summer 2024 season in H2 FY2024. ICRA recently published a research note on the Indian apparel export industry. The rating agency expects its sample companies to report a mild 2-3 percent YoY increase in revenues to Rs. 27,255 crore for FY2024. ICRA’s outlook for the apparel industry remains Stable. For FY2024, ICRA expects the sample set to report ~2-3 percent revenue growth, led by an expected recovery in demand conditions in the international markets during H2 FY2024. The operating margins may slightly moderate to 9.0-9.5 percent in FY2024 (10.9 percent in FY2023), on a relatively weaker operating environment in H1 FY2024, steeper raw material prices, and higher employee expenses. Indian cotton yarn prices had averaged ~19 percent higher in FY2023 compared to the past five-year average. However, between April and July 2023, average cotton yarn prices were ~24 percent lower than the average cotton yarn prices in FY2023, while remaining elevated. Nevertheless, the stability of export incentives, together with the benefits of higher scale, should help the companies cushion the impact on profitability. A difficult operating environment had pushed back large capex investments for most players, except for a brownfield expansion by one player. However, based on an expectation of demand revival from H2 FY2024, industry players’ strategies to take advantage of the China Plus One movement, and to capitalize on the PLI incentives (especially in the man-made fiber or MMF value chain), ICRA expects a pick-up in capex spending in FY2025. Despite the expected increase in debt, the coverage ratios of the sample set are expected to remain stable as earnings improve. ICRA’s sample set of apparel-exporting companies is likely to report an interesting cover of ~5.7-6 times and total debt/ OPBDITA of ~1.8-1.85 times in FY2024 and FY2025, respectively (compared to ~5.6 times and ~1.9 times respectively, in FY2023). Out of the approved 64 applicants for the PLI 1.0 scheme in April 2022, 56 applicants completed the mandatory criteria for the formation of a new company and approval letters have been issued. On July 18, 2023, the Government of India reopened the PLI 1.0 scheme portal till August 31, 2023, and on August 31, 2023, the Government extended it till October 31, 2023. In addition to the fresh capacity additions under the PLI, the PM Mega Integrated Textile Region and Apparel (MITRA) schemes will strengthen India's presence in the global apparel trade, by providing scale benefits and strengthening the country’s presence in the MMF value chain. ICRA anticipates the culmination of these schemes to enable Indian apparel exporters to capture a greater share of the Chinese apparel export market.
Source: Indian retailer
The LYCRA Co., a global developer of durable, sustainable and innovative fiber and technology solutions for the apparel and personal care industries, announced today the publication of its second annual Planet Agenda Update and its abridged Global Sustainability Scorecard for fiscal year 2022. These documents report on the company’s progress toward achieving its 2030 sustainability goals announced in last year’s publication. Download them today on lycra.com/update. Planet Agenda is the name of The LYCRA Co.’s sustainability framework that touches every aspect of its business and is built on three pillars: product sustainability, manufacturing excellence and corporate responsibility. The sustainability goals outlined in these documents are organized around these pillars and align with five of the United Nations Sustainable Development Goals (SDGs). This update tracks 2022 performance against 2030 targets. “Planet Agenda guides our evolution as we strive to contribute to the sustainability of the apparel and personal care industries by delivering products that add value and conserve resources at all levels of the value chain,” said Steve Stewart, chief brand and innovation officer, The LYCRA Co. “We are proud of the advances we have made in pursuit of our 2030 goals. At the same time, we recognize the challenges in front of our industry are great, and we can only meet them by working together with our customers, suppliers, and third-party partners.” Highlights of the 2022 Planet Agenda Update include news on innovative products for sustainable fashion offering durability benefits, recycled and renewable inputs; a notable reduction in greenhouse gas emissions driven in part by the company’s Maydown, Northern Ireland site converting its purchased electricity to renewable sources through Energy Attribution Certificates (EACs); and three manufacturing sites achieving third-party verified top-quartile performance in the Higg Facility Environmental Module (FEM), with two achieving the same level in the Higg Facility Social & Labor Module (FSLM). “We see Planet Agenda as a shared endeavor with our customers and partners, united in the belief that to have a healthy business we must have a healthy planet,” said Jean Hegedus, The LYCRA Company’s director of sustainable business development. “Our heritage of working together with our customers and other third parties, along with the urgent need for collaboration throughout the value chain in order to meet the industry’s goals, inspired the theme of the 2022 Planet Agenda Update: Together, we go further.”
Source: Textile world
