The Synthetic & Rayon Textiles Export Promotion Council

MARKET WATCH 27 SEPTEMBER, 2016

NATIONAL

 

INTERNATIONAL

 

Textile Raw Material Price 2016-09-26

Item

Price

Unit

Fluctuation

Date

PSF

1013.73

USD/Ton

0%

9/26/2016

VSF

2534.32

USD/Ton

0.18%

9/26/2016

ASF

1889.50

USD/Ton

0%

9/26/2016

Polyester POY

1019.73

USD/Ton

0.15%

9/26/2016

Nylon FDY

2429.35

USD/Ton

0.31%

9/26/2016

40D Spandex

4423.82

USD/Ton

0%

9/26/2016

Nylon DTY

1289.66

USD/Ton

0%

9/26/2016

Viscose Long Filament

2249.40

USD/Ton

0.67%

9/26/2016

Polyester DTY

2054.45

USD/Ton

0%

9/26/2016

Nylon POY

1237.17

USD/Ton

0%

9/26/2016

Acrylic Top 3D

2624.30

USD/Ton

0%

9/26/2016

Polyester FDY

5626.50

USD/Ton

0%

9/26/2016

30S Spun Rayon Yarn

3104.17

USD/Ton

0%

9/26/2016

32S Polyester Yarn

1679.55

USD/Ton

0%

9/26/2016

45S T/C Yarn

2609.30

USD/Ton

0%

9/26/2016

45S Polyester Yarn

3239.14

USD/Ton

0%

9/26/2016

T/C Yarn 65/35 32S

2369.37

USD/Ton

0%

9/26/2016

40S Rayon Yarn

1844.51

USD/Ton

0%

9/26/2016

T/R Yarn 65/35 32S

2249.40

USD/Ton

0%

9/26/2016

10S Denim Fabric

1.37

USD/Meter

0%

9/26/2016

32S Twill Fabric

0.84

USD/Meter

0%

9/26/2016

40S Combed Poplin

1.19

USD/Meter

0%

9/26/2016

30S Rayon Fabric

0.70

USD/Meter

0%

9/26/2016

45S T/C Fabric

0.67

USD/Meter

0%

9/26/2016

Source: Global Textiles

Note: The above prices are Chinese Price (1 CNY = 0.14996 USD dtd. 26/09/2016)

The prices given above are as quoted from Global Textiles.com.  SRTEPC is not responsible for the correctness of the same.

 

Rajasthan handlooms to be available online soon

Rajasthan State Handloom Development Corporation (RHDC) is exploring opportunities of selling handloom products on online retail stores. To do so, it is in talks with India's biggest ecommerce companies like Amazon, Snapdeal and Flipkart. This initiative is expected to help Rajasthan made handloom products be sold across a wider Indian market. "We are in discussion with Amazon, Flipkart and Snapdeal, so that the market for Rajasthan handlooms becomes more widespread," media reports quoted RHDC managing director Shuchi Sharma as saying. Suchi Sharma was speaking on the sidelines of a five-day 'Colours of Rajasthan', an exclusive exhibition of handloom products from Rajasthan being held in Hyderabad. RHDC currently manages 15 showrooms in Rajasthan and one in Gujarat and is keen to open more outlets outside the state, while also helping the state handloom industry, by providing access to capital, technology and markets.

SOURCE: Fibre2fashion

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GST will help in better calculation of GDP: T C A Anant

The Goods and Services Tax (GST), which the Centre is planning to implement from April 1, 2017, will help in calculating the country’s GDP in a better way, a senior official said. “Once GST is in place, calculation of GSP (gross state product) will be better. The Finance Minister (Arun Jaitley) has said the value chain will be captured even better. Considerable amount of work is taking place,” Secretary with the Union Ministry of Statistics and Programme Implementation and Chief Statistician of India, T C A Anant said. He said discussions, so far, have focused on the need to “shave” tax collection under GST either by the Centre or states. “As far as data network is planned, it is expected that all aspects will be taken care of,” Anant said at an interaction organised by the MCCI here.

Defending the new series of national income used for GDP calculation, which created controversy, Anant said “This is better than the older one which did not capture the entire value chain.” He said certain changes have been made like sources of collating data, creation of a quasi-corporate entity which does not submit accounts and corporate, which maintain accounts, among others. Anant said while corporate data was collected from the Ministry of Corporate Affairs annually, household information was collated every five years from the NSS data. “Now GDP at market prices is calculated by adding GVA (gross value added) with taxes and then subtracting the subsidies,” he said, adding the first quarter GDP estimates, which was lower at 7.1 per cent, was due to the fact that while GVA rose, taxes have fallen marginally along with subsidies. He said the ministry was now planning to launch a labour survey for measurement on quarterly and yearly basis.

SOURCE: The Financial Express

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Govt issues draft GST procedural rules, Council to finalise them on Friday

The businesses within India may get online registration within three days of submission of application under the proposed Goods and Services Tax (GST) regime, according to draft rules floated for registration, invoice and payments for the new indirect tax regime by the indirect tax department. The non-residents, who will come under the purview of GST, will be required to electronically submit the application for registration at least five days prior to the commencement of business and deposit full tax liability in advance, according to these rules. Experts fear that e-commerce companies mat end up with multiple registrations because of some provisions. The draft rules were a swift move by the Central Board of Excise and Customs (CBEC) with an eye on the April 1, 2017, roll-out of the new indirect tax regime. The rules, on which comments are sought by Wednesday, are likely to be finalised by the GST Council on Friday. "We intend to have these rules approved by the GST Council in its meeting on September 30 so that business systems can be modified by all," Revenue Secretary Hasmukh Adhia tweeted. The draft rules also provide that if a tax official fails to take action on the registration application within a stipulated time frame, the application for grant of registration shall be deemed to have been approved. The rules also provide for suo motu registration of persons who are liable but have failed to apply for registration. The draft rules came just three days after end of the first meeting of the GST Council.

According to the draft norms, the applicant seeking registration will have to submit PAN, mobile number and email address on the common portal or through a facilitation centre. The tax authorities will use the PAN, one-time password and Aadhaar number to verify the details of the applicant. In case all documents are in order, the tax official will approve GST registration in three working days from the date of submission of the application. If there are defects in the GST registration application, the applicant has to be intimated within three working days and after receiving clarification, s/he will be granted registration within seven days from the date of receiving the reply. There will also be a provision to grant separate registrations for business verticals of the same organisation. The rules also provide for physical verification of business premises after the grant of registration. Nangia & Co Director Rajat Mohan said, "The government is working enthusiastically and is moving with lightning speed in hitting the bullseye for April 2017."In all, the CBEC has come out with 17 rules and 26 forms for registration, five rules and one form for invoice and four rules and seven forms for payment. Invoice rules prima facie prescribed that the number of details should be mentioned in an invoice e.g. description of goods, HSN code of each good supplied, quantity of goods, rate (per item), discount offered, freight, amount of tax (under reverse charge), electronic reference number etc. These rules also prescribe the transporter need not carry any invoice if the supplier provides invoice reference number to the transporter. Divyesh Lapsiwala, tax partner, EY India, said some of the provisions such as electronic authentication for registrations, special application for non-resident dealers, and self-updation of non-core details without needing an approval are positive changes. "Further, it appears that e-commerce companies may end up with multiple registrations due to TCS (tax collected at source) provisions," he said.

THE RULES

  • Online registration by residents should be done within 3 days of submission of the application
  • Non-residents will be required to electronically submit applications for registration 5 days prior to the commencement of business and deposit full tax liability in advance
  • If a tax official fails to take action on registration application within a stipulated time frame, the application shall be deemed to have been approved
  • The applicant will have to submit PAN, mobile number, email address on the common portal or through a facilitation centre

SOURCE: The Business Standard

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Power tariffs for industry shoot up

Power tariffs paid by industry have increased across states owing to the levy of high cross-subsidy charges to subsidise lower-paying consumers. There has been 30-600 per cent increase in cross subsidy surcharges (CSS) in the past year in the states reviewed by Business Standard. In Bihar there was a 500 per cent increase in CSS, while in Uttar Pradesh it was174 per cent, followed by 193 per cent in Himanchal Pradesh and 146 per cent in Gujarat. At the same time, Bihar, Chattisgarh, Gujarat, UP and Uttarakhand have issued tariff orders for financial year 2016-17 and only Gujarat has allowed a retail tariff to be increased. These states have, however, allowed CSS to be levied on industry. Rajasthan has not filed a tariff petition but has levied additional surcharge. CSS is levied by state power distribution companies (discoms) to recover cost of supply. This comes at a time when most states have signed up for the Union government's Ujwal Discom Assurance Yojana (UDAY) scheme that aims to bring down losses and improve efficiency. However, most of the states have increased the amount of additional charges levied on industry. Power tariffs for industry shoot up According to market estimates, the gap between the average cost of supply (ACS) and the average revenue realisation (ARR) of state-owned discoms is around 27 per cent, and around 35 per cent in big states such as UP and Rajasthan.

The National Electricity Policy allows states to subsidise a section of consumers. It also has provisions for levying additional charges on consumers capable of paying higher rates to make up for the ACS-ARR gap. The charge is levied on commercial and industrial consumers who are capable of switching to other sources of power; thereby they need to compensate discoms. The National Tariff Policy (NTP) 2016 suggested a new formula for CSS determination and capped it at 20 per cent of tariff, which led to states increasing charges. NTP also introduced additional surcharge for these consumers when they shift to other sources apart from states' discoms. Delhi, Punjab, Haryana, Rajasthan and Himanchal Pradesh have introduced additional surcharge in their tariff regime. "If CSS is higher than the ACS-ARR gap of any state, then it is a clear sign of protectionism. States have a public interest in levying CSS. As the distribution sector faces losses across states, we need to link the CSS with AT&C (Aggregate Technical and Commercial) losses faced by discoms. This would ensure that as states bring down their losses, they will reduce additional charges," said a Delhi-based expert. Executives said states keep restricting open access by levying various charges on industry. "Cross subsidy makes up for subsidised power promised by the political class to appease the rural population," said a power sector executive. It thereby restricts the idea of open access, which is one of the most important amendments suggested in the Electricity Act, the executive said. Those who avail of the subsidies are mostly farmers, the rural populace, and lower income/consumption groups. Industries are allowed to purchase their power demand from outside states and the spot market, falling in the category of open access. Open access is yet to be made mandatory for all consumers in states under the Electricity Act. It is also proposed that open access be made free of additional charges to ensure a uniform power market across the country.

SOURCE: The Business Standard

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RCEP concessions: Government undertaking ‘sensitivity analysis’ of import duties

The ministries of commerce and finance are undertaking a “sensitivity analysis” of import duties on products that are crucial to revenue collection of the government, a senior government official told FE. The analysis is expected to be used for renewing offers for the 16-nation Regional Comprehensive Economic Partnership (RCEP) — talks for which will next take place in China in October — as well as other trade negotiations.

Following the analysis, India could consider making greater tariff concessions on imports of products in which potential revenue losses are relatively low or limited, and the country would be more conservative in its offers on items that fetch high revenue to the exchequer, said the official. The analysis is crucial as India has now shown its willingness to make more concessions in goods at RCEP if potential partners, including China, Japan and South Korea, are ready to make commensurately better offers in services and investments. This is the second key analysis of potential revenue losses this year by the departments of commerce and revenue to help government officials negotiate better with other countries on trade, keeping in mind India’s “tolerance level” for such losses and domestic realities. The exercise will be helpful for any other trade negotiations in future, as well. Such an estimate will also help negotiators gauge how good the other party’s counter-offer is against an Indian offer. The country’s average import tariff rate is 13.5%, and in the case of non-agricultural items, it’s even lower — 10.2%.

According to the earlier estimate this year, India could lose tax revenue of R75,733 crore a year if it scraps tariffs on merchandise imports entirely now to either counter or emulate the US-led Trans-Pacific Partnership (TPP) model of zero duty over a period of time. At the latest round of negotiations in Vietnam last month, India is learnt to have shown its readiness to consider scrapping as much as 80% of tariff lines in merchandise trade for all RCEP partners, barring China. It seems comfortable with removing 65% of tariff lines for China initially (still, a marked improvement from the initial offer of 42.5%), though these tariffs could be abolished only over a period of time to protect interests of domestic industry. Initially, India had offered to abolish 80% of tariff lines for 10 Asean members, 65% of tariff lines for Japan and South Korea and 42.5% for China, Australia and New Zealand. However, India has made it clear that it wants agreements on all the three pillars of negotiations — goods, services and investment — be implemented only as a package, not one at a time. So, even if a consensus is reached early on goods (which is what most nations want), India feels it shouldn’t be enforced in isolation.

SOURCE: The Financial Express

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Intra-SAARC group releases operation plans 2025

In an indication that India will not allow Pakistan to stall regional development envisaged under SAARC, a smaller group of six south-Asian nations have released an operation plan running through to 2025. Member countries of the South Asia Sub-regional Economic Cooperation (SASEC) are Bangladesh, Bhutan, India, Maldives, Nepal, and Sri Lanka — SAARC less Pakistan and Afghanistan. "SASEC OP (operational plan) is the program's first comprehensive long-term plan to promote greater economic cooperation among members," finance ministry said in a statement. SASEC was established in 2001 to improve cross-border connectivity, boost trade among member countries, and strengthen regional economic cooperation. With Pakistan stalling progress under SAARC umbrella, SASEC could get a bigger push from New Delhi.

Over 200 potential transport, trade facilitation and energy projects worth $120 billion in investments for the next five years have been identified under the plan. Out of these 74 projects are in India with an estimated project cost of over $60 billion. Majority of these projects are located in North East or Eastern part of the country. The Asian Development Bank (ADB) is the secretariat and lead financier of the SASEC program and to date has approved 40 projects worth almost $7.7 billion in transport, energy, trade facilitation, and information and communications technology.

SOURCE: The Economic Times

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India mulls ‘economic war’ on Pakistan

India is deploying its ‘big guns’ in preparation for an “economic war” on Pakistan as a calibrated response to the recent terrorist attack on the Uri military camp. This “war minus the shooting” could take the form of a withdrawal of the concessions given to Pakistan under the South Asian Free Trade Area (SAPTA) agreement and a review of the Indus Water Treaty (IWT) between the two countries. India is also mulling the option of dragging Pakistan to the Dispute Settlement Body of the World Trade Organisation (WTO) for not extending trade benefits under the ‘most favoured nation’ (MFN) status.

Economic, not military, war

According to sources, while India may not be keen on a military war against Pakistan in retaliation for the September 18 attack, the consensus within the government is to wage an “economic war” instead. Two-way trade between India and Pakistan stood at $2.61 billion in 2015-16, up 11 per cent from $2.35 billion in 2014-15. While this is small relative to the economies of both the countries, India reckons it is well placed to turn the heat on Pakistan. The action contemplated on the SAFTA front is illustrative. According to Prof Biswajit Dhar of Jawaharlal Nehru University (JNU), any action within SAFTA — which has Afghanistan, Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan and Sri Lanka as member-states — has to be consensus-based. However, he said, no country will oppose India’s move considering their recent statements. The government has also come under pressure from the cement industry to immediately stop duty-free import of cement from Pakistan.

Similarly, there has been a clamour for India to withdraw the MFN status it had given Pakistan in 1996. However, highly placed sources told BusinessLine that India is planning an “alternative and more feasible” option that will have an adverse impact on Pakistan’s economy: challenge Pakistan before the WTO. Under WTO rules, MFN status implies that every time a country lowers a trade barrier or opens up a market, it has to do so for the same goods/services from all its trading partners. “Withdrawing the MFN status at this stage will only be a symbolic gesture. But we should weigh the pros and cons of challenging Pakistan at the WTO as it can seek exceptions and turn the case in its favour,” said Jayant Dasgupta, former Ambassador of India to the WTO. Pakistan, he added, may cite ‘Security Exceptions’ in Article XXI of GATT (General Agreement on Tariffs and Trade), under which a member-country may not grant MFN to another member on grounds of security.

Last year, when External Affairs Minister Sushma Swaraj was in Pakistan, both sides decided to restart the Comprehensive Bilateral Dialogue, under which India offered to give preferential trade access to Pakistan under SAFTA provided Pakistan extends MFN benefits to India. Pakistan came close to giving India MFN status in 2012, but it has missed several committed deadlines for its implementation. When Prime Minister Narendra Modi met Nawaz Sharif in April last year, normalising trade relations was one of the top items on the agenda Much water has flowed down the Indus since then. And after the Uri attack, the powder is being kept dry for an all-out economic war on Pakistan.

Sushma offensive at UN

PTI adds: In a sharp rebuke to Prime Minister Nawaz Sharif’s “tirade” on Kashmir, India today said that those accusing others of rights violations must introspect, and censured Pakistan for the first time at the UNGA for perpetrating the “worst form of state oppression” in Balochistan. Taking a veiled dig at Pakistan, External Affairs Minister Sushma Swaraj in her address at the 71st UN General Assembly (UNGA) session, said there are nations “in our midst” where UN-designated terrorists roam freely and deliver “their poisonous sermons of hate with impunity”, an apparent reference to Mumbai attack mastermind and Jamaat-ud-Dawa chief Hafiz Saeed.

SOURCE: The Hindu Business Line

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BRICS Labour and Employment ministerial meeting today

The two-day BRICS Labour and Employment Ministerial meeting begins today in New Delhi. The ministers will deliberate on ways to adopt the BRICS Labour and Employment Ministerial Declaration. The meeting will have dedicated sessions on key thematic areas, i) Employment Generation, ii) Social Security, iii) Inclusive Development Including Formalization. International Organizations viz. ILO, ISSA and Academia's are also participating and providing their research inputs to the deliberation. Following the tripartite model of dialogue, the national social partners of BRICS countries are also participating in the deliberations. At the valedictory session, there would be adoption of BRICS Labour and Employment Ministers' Declaration. The first meeting of BRICS Employment Working Group (BEWG) was held on July 27-28 at Hyderabad.

During this meeting, a broad consensus was achieved on 'Employment Generation for Inclusive Growth', 'Possible Social Security Agreement among BRICS nations' and 'Networking of Labour Institutes of BRICS nations' to include in the BRICS Ministerial declaration for their subsequent discussion. India has assumed the presidency of BRICS in February 2016 and hosting the eighth BRICS Summit 2016 under India's Chairmanship scheduled to be held on October 15-16 at Goa. The theme of India's BRICS Chairmanship is "Building Responsive, Inclusive and Collective Solutions". In the prelude to the final meeting of BRICS, a series of meetings from participating Ministries are being held at various places in India. The BRICS Employment Working Group has been constituted to deliberate on common issues and challenges facing the world of work in BRICS nations and to formulate appropriate and coordinated policy reforms.

SOURCE: The Business Standard

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Global Crude oil price of Indian Basket was US$ 43.74 per bbl on 26.09.2016

The international crude oil price of Indian Basket as computed/published today by Petroleum Planning and Analysis Cell (PPAC) under the Ministry of Petroleum and Natural Gas was US$ 43.74 per barrel (bbl) on 26.09.2016. This was lower than the price of US$ 44.70 per bbl on previous publishing day of 23.09.2016.

In rupee terms, the price of Indian Basket decreased to Rs. 2918.14 per bbl on 26.09.2016 as compared to Rs. 2979.62 per bbl on 23.09.2016. Rupee closed weaker at Rs. 66.71 per US$ on 26.09.2016 as against Rs. 66.65 per US$ on 23.09.2016. The table below gives details in this regard:

Particulars

Unit

Price on September 26, 2016 (Previous trading day i.e. 23.09.2016)

Pricing Fortnight for 16.09.2016

(Aug 30, 2016 to Sep 13, 2016)

Crude Oil (Indian Basket)

($/bbl)

43.74              (44.70)

45.03

(Rs/bbl

2918.14        (2979.62)

3005.30

Exchange Rate

(Rs/$)

66.71              (66.65)

66.74

 

SOURCE: PIB

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Workers demand govt end textile feud in Myanmar

On September 23, more than 600 workers from the Panda Textile factory staged a demonstration in Paleik, Mandalay Region, demanding the government end a long-running dispute about pay and contracts.  Panda Textile, in Singaing township, has been wracked by demonstrations and strikes since it was privatised under an agreement that required the new management to retain the civil servant workforce, and continue to honour the same contracts as when they were government employees. Hundreds of workers have been staging a sit-in outside the factory gates since June to protest pay cuts and being forced to work on their days off, in breach of their employment contract.

On September 12, U Khin Maung Cho, Union minister for industry, told the Pyithu Hluttaw that he was prepared to issue an order to settle the dispute. But workers say they have seen no action since the pledge. “Why haven’t we received any settlement offers so far? Our sit-in has lasted more than 100 days,” said Ma Zar Chi Win, a leader of the protesting workers from Panda Textile. “The minister has not conducted any sort of field observation for the case. And without understanding the situation on the ground, and at the protest camp, he can’t resolve the dispute, I think.” “What he said [to parliament] made it sound like we, the workers, like to stir up unrest,” she added. Panda Textile took over the factory from the Ministry of Industry in 2012, paying an annual K360 million (US$296,000). The deal involved the transfer of 1467 staff from government service to the company. In March, the factory notified the Myanmar Investment Commission of a long-term lease that expires in 2043, the minister told the Pyithu Hluttaw during the September 12 session. He added that his ministry will take action against the factory owner for breach of contract. In June, the Mandalay Region labour ministry also announced that it would sue the factory for amending the contract without prior agreement from the employees, as required under the 2013 Employment and Skills Development Law. The workers say they have not seen either of threatened lawsuits carried out, however.

The dispute has taken on new importance now that Myanmar has become eligible again for the United States Generalized System of Preferences, opening up new export markets. International investors are increasingly pressing the government about the state of labour unrest and the dispute resolution procedures under the law. Panda Textile had announced in March that it would adopt a 44-hour work week with eight-hour days in accordance with the 1951 Factories Act, according to general manager Daw Tin Tin Shwe. At that time, she also disputed the accusation that the factory had breached any contracts.

SOURCE: The Myanmar Times

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Azerbaijan pins hope on revival of cotton sector

In the midst of economic problems, Azerbaijan president Ilham Aliyev has pinned hopes on revival of the cotton sector to bring the country's revenue back on track. Large decline in oil prices, cuts in public investment, currency depreciations, and the slowdown in trading partners' economies have all affected the economy of the former Soviet republic. Stating that higher cotton yields were urgently needed to replenish Azerbaijan's greatly diminished state coffers, Aliyev has issued an order on government support to boost cotton-growing in the country. As per the order, the government will give AZN 0.1 ($0.6) subsidy to cotton manufacturers for each kilogram of cotton sold to the processing enterprises. This subsidy would be available only for raw cotton produced in 2016 and sold to processing enterprises. Further rules on giving subsidies would be decided by the Cabinet, Azerbaijani media reported. “More than 200,000 tons of cotton will be produced next year… If all instructions are fulfilled and it should be, that in 2017 we will be able to produce 250,000 and even 300,000 tons of cotton,” Aliyev said at a meeting on the development of cotton production in Sabirabad region.

In 1970, cotton was sown on 190,000 hectares in Azerbaijan, which increased to 305,000 hectares in 1982. However, this area decreased to 18,700 hectares last year. This year the area has increased to 52,000 hectares. The president hoped that the area under cotton would swell to 128,000 hectares next year, yielding at least 250,000 tons of cotton. In addition to cotton subsidies, the government would invest around $100 million to build textile plants that can use raw cotton and wool and turn them into finished products. The investment would mainly be in the city of Ganja and the Mingachevir Region. The increase in cotton production is expected to raise employment levels and facilitate the flow of foreign currency into the country, benefiting both people and the government.

SOURCE: The Global Textiles

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Automotive textiles industry in flux

As a result of higher demand for increased comfort and improved safety, the use of textile materials in automotive applications has increased from 20 kg in a mid-size car in 2000 to around 28 kg today, according to a new report by Textile Media Services. In the drive towards lowering weight for reducing both fuel consumption and CO2 emissions, many current developments are including new uses for fabrics, and by 2020, it is predicted that the same sized car will contain 35 kg of textiles. This progress, however, is being offset, in the wider scheme of things, by the related trend towards smaller vehicles. Written by the Inside Composites editor Adrian Wilson, the new report by Textile Media Services, Automotive Textiles: An industry in flux – from Motor City to Silicon Valley (4th edition), provides the latest analysis of the fast-altering global automotive textiles industry.

Market overview

This fully updated edition features an overview of the automotive market and the wide-ranging use of textile materials in vehicles, and examines in detail the current structure of this global industry, with profiles of more than 70 of the most influential Tier 1 and Tier 2 players. It also explains where the growth will be in the next 25 years, and why. Published in September 2016, the in-depth report with 330 pages and 75 tables examines the global automotive industry; defines automotive fabrics and textiles; identifies key areas of application; and profiles key users and producers of automotive textiles.

Unprecedented consolidation

There have been tremendous changes to the global structure of the automotive textiles industry since the last edition of this report was published in 2013. Over the past three years there has been unprecedented consolidation among manufacturers of both fabrics and finished components for automotive interiors, not least among the Tier 1 suppliers to the OEMs. While turnovers have returned to levels comparable to before the global recession of 2008-09, much of the profitability in supplying to OEMs has been driven upwards and is now being retained with the carmakers themselves.

Growing demand

Fibre-based composites are becoming increasingly important in the manufacture of automotive components. There is now a push in the automotive industry to replace steel and aluminium parts with CFRPs, beyond their established use in Formula 1 and Supercars. This began with the revolutionary global infrastructure being put in place by BMW for the launch of its i Series range of electric vehicles in 2013. More recently, Silicon Valley’s Carbon, has attracted a $81 million in funding for its ground breaking CLIP technology and M1 printer, bringing its total investment to date up to $222 million. Among the latest investors is BMW, which plans to incorporate the M1 into its manufacturing lines, presumably for the heavily carbon fibre-based i and 7 Series platforms. The BMW i Series programme has been the most ambitious move by a car manufacturer in decades in very rapidly establishing the world’s largest carbon fibre manufacturing plant and linking together a complete supply chain for composites made from them, with its vehicles as the end-point. Carbon reports unprecedented demand for its M1 printer in many fields, and automotive customers already include Delphi and Ford, as well as BMW.

SOURCE: The Innovation in Textiles

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Sri Lanka to host Intex 2016 textile fair in November

Intex South Asia 2016, South Asia’s only international sourcing show for yarns, apparel fabrics, denim fabrics, clothing accessories, and allied services, will be held from November 16 to 18, 2016, in Colombo, Sri Lanka, at the Sri Lanka exhibition and convention centre. It is a robust platform for untapped South Asian intra-regional trade. Intex South Asia 2016 is the only international textile sourcing show in South Asia region and the only platform giving in-depth and ground insights to help you penetrate and develop the vast South Asian market.

Understanding the growing importance and potential of the region, Intex South Asia was created to help manufacturers and buyers take advantage of these opportunities. It is the only international sourcing textile show in South Asia region connecting global exhibitors from India, Pakistan, Bangladesh, Sri Lanka, China, Korea, Taiwan, Hong Kong, and more to buyers from across the South Asia region and other international markets. The potential for intra-regional trade is tremendous and is a critical gap that needed to be filled. Intex is the only platform in South Asia promoting intra-regional trade, thus positioning itself as the gateway to South Asian markets. The specialised zones at Intex like Denim World (showcasing denim yarns, fabrics, accessories and washes); Trends Zone (forecasting latest trends and designs) and Innovation Zone (exhibiting latest innovations in textiles as well as services) provide a focused approach, assisting buyer and exhibitor interaction.

Intex South Asia bridges the gap and converges buyers and suppliers under one networking platform. It is the only fair in South Asia specifically designed to synergise the garmenting needs of international brands with the manufacturing strength of South Asia satisfying both exports and large domestic markets. Saif Jafferjee, chairman, Sri Lanka Apparel Exporters Association (SLAEA) said, “Intex will surely be an ideal chance for large and small scale companies to gain exposure. Intex will facilitate and strengthen business partnerships and create a positive platform for future business.”

SOURCE: Fibre2fashion

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