Synopsis "Taxpayers are therefore advised to promptly furnish their bank account details, who have not provided it so far if 30 days period is shortly going to expire to avoid disruption in business activities and the subsequent suspension of GSTIN," it said. GSTN further said that a new functionality is being developed as per which taxpayers whose registration is suspended for non-submission of bank account details would be intimated through Form REG-31. Businesses will be required to submit valid bank account details to GST authorities within 30 days of grant of GST registration to avoid suspension, the GST Network has said. In an advisory to GST-registered businesses, GSTN said all registered taxpayers are required under the Goods and Services Tax (GST) law to furnish details of their bank account/s within 30 days of the grant of registration or before the due date of filing GSTR-1/IFF, whichever is earlier. GSTR-1 filed by a company contains statement of outward supplies, while Invoice Furnishing Facility (IFF) can be availed by businesses opting for Quarterly Returns with Monthly Payment (QRMP) scheme under GST. "Taxpayers are therefore advised to promptly furnish their bank account details, who have not provided it so far if 30 days period is shortly going to expire to avoid disruption in business activities and the subsequent suspension of GSTIN," it said. GSTN further said that a new functionality is being developed as per which taxpayers whose registration is suspended for non-submission of bank account details would be intimated through Form REG-31. Such businesses would also be debarred from filing any further GSTR-1/IFF. If taxpayers update their bank account details in response to the intimation in Form REG-31, the suspension will be automatically revoked. If the bank account details are not updated even after 30 days of issuance of Form REG-31, the registration after suspension may also be taken up for cancellation process by the tax officer, GSTN said. The GST Council, chaired by Union Finance Minister Nirmala Sitharaman and comprising finance ministers from all states, had in July decided that businesses which do not furnish details of a valid bank account will be barred from filing GSTR-1 or using IFF.
Source: Economic Times
Chief Minister Yogi Adityanath on Wednesday emphasised the transformative role played by the One District One Product scheme in the context of Uttar Pradesh, saying the state's exports under this scheme have touched Rs 2 lakh crore. Adityanath was speaking at an event at the Awadh Shilpgram here after inaugurating a programme to celebrate 'Uttar Pradesh Diwas'.During his address to the attendees of the event, the chief minister highlighted the significance of the Uttar Pradesh Foundation Day as a potent platform for realising Prime Minister Narendra Modi's vision.Speaking about the impact of the One District One Product (ODOP) scheme, launched in 2018, on the state's growth, Adityanath said Uttar Pradesh has so far exported ODOPs worth Rs 2 lakh crore. He also launched the 'ODOP Mart Portal' for e-marketing of ODOP products. He mentioned that 96 lakh MSME units are operational in the Uttar Pradesh, providing employment to 40 lakh people returned to their native places in the state during the COVID period, according to an official statement. The government is extending a security insurance cover of Rs 5 lakh to MSME units in the state in case of accidents or disasters, he added. Adityanath pointed out that the world recognised the potential of Uttar Pradesh through the International Trade Show organised in Noida last year, which attracted more than 500 foreign buyers. The chief minister said on the third foundation day of the state under his tenure, the government implemented a new apprenticeship scheme, resulting in the participation of lakhs of youth. Reflecting on the state's economic condition before 2017, Adityanath remarked, "After 2017, when the double engine government started functioning, a better security environment was created in the state." "Today, the results are evident. The youth, entrepreneurs, and businessmen of Uttar Pradesh no longer need to conceal their identity within the country," the statement quoted him as saying. He emphasised that Uttar Pradesh has fortified its economic position over the last seven years, witnessing improvements in infrastructure and connectivity. On this occasion, Adityanath honoured Lucknow-based scientist Ritu Karidhal Srivastava and Naveen Tiwari of Kanpur with the prestigious Uttar Pradesh Gaurav Samman award. Dr Srivastava played an important role in the development of India's Mars Orbiter Mission and Chandrayaan. She was also the Deputy Operations Director for this mission and has been working for ISRO since 1997, the release said. Tiwari was presented the award for establishing the largest independent mobile ad-tech platform in the world, connecting local businesses in Uttar Pradesh and India with national and international audiences. The software developed by his enterprise is actively featured on over 400 million smartphones worldwide, it added. On the sidelines of the event, cultural performances from diverse states were held. The stage came alive with vibrant folk dances performed by artists from Gujarat, Jammu and Kashmir, Madhya Pradesh, Haryana, Sikkim, and Goa. Artistes from Bundelkhand, Awadh, Purvanchal, and the Braj region showcased their talents by presenting folk songs dedicated to Lord Ram. The programme also featured soulful renditions of devotional music as part of Shri Ramotsav-2024, adding a spiritual dimension to the cultural celebration. President Droupadi Murmu, Prime Minister Narendra Modi, and BJP President JP Nadda extended wishes on 'Uttar Pradesh Diwas' through microblogging platform X. President Murmu wrote on Twitter, My heartfelt greetings to all the residents of the state on Uttar Pradesh Diwas. This most populous state in the country is playing a leading role in the social, cultural and economic progress of India." "I wish happiness and prosperity to the skilled, hardworking and loyal people of Uttar Pradesh. I am confident that this state and its residents will always remain on the path of development, she added. "Many best wishes to all the family members of Uttar Pradesh, the holy land of spirituality, knowledge and education, on the foundation day of the state. In the last seven years, the state has written a new story of progress, in which the public has actively participated along with the state government," the prime minister said on X. "I am confident that Uttar Pradesh will play a leading role in the resolution journey of developed India," he added.
Source: Business Standard
Synopsis Interim Budget: India's space sector seeks liberal FDI policy, production-linked incentive, and GST exemption. They also want lower tax rates, reduced withholding tax, and a comprehensive regulatory framework. The industry body, ISpA, demands PLI for space manufacturing and components. They urge the government to procure and adopt space tech solutions and provide reasonable spectrum usage charges. Satellite operators should have depreciation and capital subsidy for infrastructure investments. IN-SPACe projects the space economy to reach USD 44 billion by 2033. Budget expectations: India's nascent space sector has sought a liberal FDI policy on a par with the defence industry and production-linked incentive in the interim Budget that the government will present next week. The industry body Indian Space Association (ISpA) has also sought GST exemption for satellites, launch vehicles and ground equipment manufacturing, lower tax rates for external commercial borrowings and reduction of satellite sector withholding tax from 10 per cent to two per cent, given the low profit margins. "Our expectation is for enabling a more liberal FDI (foreign direct investment) policy in the space sector. As of now, even one per cent of FDI has to go through the government approval route and that takes months and months," Awais Ahmed, founder and CEO of Pixxel, a Bengaluru-based start-up, told PTI. "The defence sector has 74 per cent FDI through the automatic route. Beyond that, you have to go for the government route. At least matching what is there for the defence side would be really helpful in opening up the inflow of external capital for Indian space companies trying to scale up and build more things," Ahmed said "We need to catalyse and innovate more by having suppliers and folks building a variety of different things for space technology -- whether that is components, satellites, cameras, trackers. That would only be possible to innovate or accelerate through a PLI scheme that sort of enables that to happen," Ahmed said. ISpA also demanded a PLI scheme for space-grade components along the lines of a similar scheme for drones. The industry body also wants the government to commit to procuring and adopting space tech solutions across domains such as agriculture, disaster management. "Now, to propel this promising industry and drive innovation, it is crucial for the government for the development of a comprehensive regulatory framework and to address existing fiscal and taxation challenges," ISpA Director General Lt Gen (Retd) AK Bhatt said. The association has also sought reasonable spectrum usage charges (SUC) as percentage of adjusted gross revenue (AGR) for satellite services allocated nonauctioned spectrum under the new Telecommunications Act, 2023. ISpA said satellite operators should be permitted 25 per cent depreciation on one-time fee and licence charges to optimise tax impact and capital subsidy on infrastructure investments with additional subsidy for facilities in remote areas to spur manufacturing capabilities, launch infrastructure advancement and downstream space offerings growth in India's private space industry. IN-SPACe, the space sector regulator, has projected the country's space economy to increase to USD 44 billion by 2033.
Source: Economic Times
Chandigarh, Representatives of various associations and trade bodies have expressed concern regarding the influx of substandard imports of approximately 1,000 metric tonnes per day from China consisting of knitted fabric mixed with woven fabric. This surge is causing the under-utilisation of the upstream textile industry, as stated by the Northern India Textile Mills Association (NITMA) on Monday. The significant factor contributing to this disparity is the customs duties imposed on woven fabric compared to knitted fabric. Currently, the customs duty on woven fabric is set at 20 per cent or Rs 115 to Rs 150 per kg, whichever is higher. Whereas, the customs duty on knitted fabric is fixed at a rate of 20 percent with no capping. RK Vij, representing Textile Association of India (TAI) and NITMA at a meeting chaired by Union Minister of Commerce and Industry Piyush Goyal in Delhi last week, recommended a minimum price of USD 4.5 to 5 per kg for the imported knitted fabric to ensure fair trade practices. The consequences of this trend are detrimental to the domestic industry, leading to the struggling status of dying, knitting, spinning, and fibre units, which are on the verge of closure. The implementation of new expansions under the Production Linked Incentive (PLI) and PM Mitra Park schemes has also been temporarily halted by domestic entrepreneurs. NITMA estimates a substantial loss of revenue, both in direct and indirect taxes, ranging from Rs 6,000-7,000 crore annually.A notable observation is that the finished knitted fabric is being imported at prices equivalent to those of Indian spun yarn.
Source: KNN India
Synopsis The plan is to come up with a comprehensive action plan to bridge India’s trade deficit with China and align India’s trading strategies with emerging geopolitical situations and potential risks to safeguard its supply chains, which have seen major disruption during the outbreak of the pandemic. The government will soon come up with a comprehensive action plan to bridge India’s trade deficit with China and align India’s trading strategies with emerging geopolitical situations and potential risks to safeguard its supply chains, which have seen major disruption during the outbreak of the pandemic. NITI Aayog has invited bids from 10 institutions to analyse the trends in India-China trade.
Source: Economic Times
The Indian Rupee is expected to appreciate to around 82 against the Dollar in the calendar year 2024 on the back of a softening dollar, robust Foreign Portfolio Investment (FPI) inflows, and a comfortable current account deficit, according to a report by CareEdge Ratings. However, the report also said that interventions by the Reserve Bank of India (RBI) to build forex reserves might act as a counterforce to curb the appreciation of the Rupee. The rupee settled at Rs 83.12 per Dollar on Wednesday. It moved in a narrow range of Rs 83.07 per Dollar to Rs 83.17 a Dollar in the current week as the RBI and oil companies continue to absorb inflows. The report suggested that the local currency might trade between 82.75-83.25 in Q1, 82.5-83 in Q2, 82.25-82.75 in Q3, and stabilising between 82-82.5 levels in Q4 CY24. Concurrently, the Dollar Index is anticipated to remain within the range of 98-101 levels by the end of Q4 CY24. The report also sheds light on the monetary policy expectations, foreseeing a 50 basis points (bps) reduction in the repo rate by the RBI in CY24. This reduction is anticipated to occur in two installments, with 25 bps each in Q3 and Q4. Furthermore, CareEdge Ratings suggests that the Federal Reserve is likely to cut rates by a more substantial 100-125 bps in CY24. This dual reduction in interest rates is expected to soften the The report expects crude oil prices to trade within the range of $70-85 per barrel in 2024. This projection is attributed to a global demand slowdown, which is expected to support India's current account deficit. However, the report warns against potential disruptions, such as an escalation of the Red Sea crisis or heightened global macroeconomic uncertainties, which could impact the predicted stability.dollar, providing a conducive environment for other currencies, including the INR, to appreciate.
Source: Business Standard
The Clothing Manufacturers Association of India (CMAI) is gearing up to unveil the 78th edition of the National Garment Fair 2024 (NGF 2024) in Mumbai from January 29 to 31, 2024. This premier event is set to showcase the offerings of over 950 garment manufacturers, featuring an extensive array of 1120 apparel brands spanning Women’s wear, Men’s Wear, Kids wear, and Accessories at the Bombay Exhibition NESCO Complex in Goregaon East. Key platform for industry interaction The NGF 2024 stands as the much-anticipated biannual trade show that acts as a crucial bridge, connecting national and regional brands, manufacturers, apparel designers, and fashion accessories manufacturers with retailers, agents, distributors, and e-commerce companies. It has earned its reputation as India’s leading trade fair, providing a comprehensive sourcing platform that optimizes both time and cost efficiency for all stakeholders involved. Insights from industry leaders Rajesh Masand, President of CMAI, emphasized the significance of NGF 2024 in gauging the industry's future, stating, “The apparel industry has faced challenges with consumer preferences shifting away from traditional apparel categories. Bookings made during NGF 2024 will serve as a key indicator for the outlook of the segment over the next six months.” Rohit Munjal, Vice President and Chairman of the Fair Committee, highlighted the expansive scale of this edition, covering approximately 7,00,000 sq. ft. of exhibition area spread across 7 Halls. Anticipating a substantial turnout, Munjal expects trade visitors from all corners of India, including national-level retailers and distributors. Industry stabilization predicted Rahul Mehta, Chief Mentor of CMAI, expressed optimism regarding the demand for the upcoming spring-summer season. He stated, “Retailers are actively managing substantial inventory, and with the ongoing End of Season Sale (EOSS), we anticipate the clearance of surplus stock, leading to a normalization of bookings. Nevertheless, 2024 is projected to be a stabilizing period, with no substantial upswing expected in apparel sales during this year.” 5 Market overview The Indian apparel market, estimated at Rs. 6.80 lakh crores has witnessed a growth of 15-20% in FY2024. This growth is attributed to distributor network expansions and new store openings. However, the same-store growth has not been as substantial, indicating the need for innovative strategies to drive sustained growth in the industry. As industry stakeholders converge at NGF 2024, the spotlight will be on forging collaborations, exploring market trends, and revitalizing a sector that is navigating through dynamic consumer preferences and market challenges. The fair is poised to serve as a pivotal juncture for the industry to adapt and thrive in the ever-evolving landscape of the fashion market.
Source: Dfupublication
The Indian economy made a robust start to the new year, with private sector business activity expanding at the fastest pace in four months in January driven by strong demand. The HSBC flash India Composite Purchasing Managers' Index (PMI), compiled by S&P Global, climbed to a high of 61 in January from 58.5 in December, marking its highest level since September. This places the index well above the 50-point threshold that differentiates expansion from contraction. "Service providers noted a stronger increase in activity than manufacturers, but growth accelerated in both cases," HSBC said in the survey, released on Wednesday. This flash result positions India as one of the fastest-growing major economies. The Reserve Bank of India (RBI) in December revised its growth forecast for the Indian economy to 7% for the current fiscal year, an increase from the earlier projection of 6.5%. This revision was based on higher-than-anticipated growth in the first two quarters. “The economy grew at a faster pace in January, led by stronger manufacturing output, as well as more robust business services activity," said Pranjul Bhandari, chief India Economist at HSBC. “New orders rose at a faster pace than a month ago, and within that, international orders were stronger than before. Input prices rose quickly, but output prices were raised to a smaller extent." Meanwhile, HSBC Flash India Manufacturing PMI stood at 56.9 in January, up from 54.9 in December. Activity in the services industry also accelerated at a sharper rate, with the HSBC Flash India Services PMI Business Activity Index rising to 61.2 during January from 59 in December. Survey participants attributed this growth to favourable economic conditions, strong demand, and continuous improvements in new business inflows. "Indeed, aggregate sales increased at a sharp pace in January, and one that was the fastest in six months. Both manufacturing firms and their services counterparts recorded quicker rates of expansion in new orders," the survey said.
Source: Live Mint
French President Emmanuel Macron's visit as the chief guest for the Republic Day celebrations is likely to give a fillip to the ongoing talks for a comprehensive trade agreement between India and EU, economic think tank GTRI said on Wednesday. France is a key member of the 27-nation bloc European Union (EU). In June 2022, India and the EU restarted the negotiations for the long-pending trade and investment agreement, after a gap of over eight years. The negotiations for the ambitious free-trade agreement (FTA) were suspended in 2013 after several rounds of talks spanning six years. Macron will be the chief guest at the Republic Day celebrations on January 26 that would make him the sixth leader from France to grace the prestigious annual event. He will also visit Jaipur on Thursday. The Global Trade Research Initiative (GTRI) said that this visit is expected to provide an impetus to various domains of mutual interest, ranging from defence cooperation to economic ties, and from energy collaboration to space and nuclear partnerships. The discussions will likely pave the way for new agreements and deepen existing cooperation, reflecting the dynamic and evolving nature of the India-France strategic partnership, it said. "France, as India's eighth largest trading partner, aims to strengthen trade and investment ties. Both countries are negotiating an FTA (India-EU FTA) to further expand the relationship. They may discuss market access, intellectual property rights, and investment facilitation," GTRI Co-Founder Ajay Srivastava said. The seventh round of talks for the proposed agreement will be held from February 19-23. Srivastava added that the discussions may include counterterrorism, intelligence sharing, and defence technology transfer. "Potential collaboration is also expected in renewable energy, green hydrogen, and sustainable infrastructure development, underscoring their commitment to combating climate change," it said, adding that discussions between the two countries may also focus on enhancing multilateral cooperation on global health, food security, and climate change. The growing space partnership between India's ISRO and France's CNES, including joint missions and technology transfer, will likely be a topic of discussion besides increasing cooperation in the civil nuclear segment, it said. The economic relationship between India and France is marked by significant business presence, trade, and investment. Over 1,000 French companies operate in India across various sectors like manufacturing, services, and technology, while more than 200 Indian companies are established in France. In 2022-23, the bilateral trade reached USD 19.2 billion (export USD 7.6 billion and imports USD 6.2 billion). India's exports to France included diesel (USD 707.9 million), ATF (USD 405 million), turbojets (USD 496 million), apparels(USD 850 million), footwear (USD 157 million), smartphones (USD 248 million), gold jewellery (USD 160.5 million), airplane parts (USD 158 million), medicines (USD 447.8 million), and chemicals (USD 364.5 million). On the other hand, main imports included planes, helicopters, and/or spacecraft (USD 2.1 billion), LNG (USD 400 million), navigation equipment (USD 102 million), turbojets, and gas turbines (USD 442.2 million). In the domain of services, India exported financial, IT, maintenance and repair, travel, transport, and other business services worth USD 3.2 billion to France, while importing services such as other business services, transportation, and insurance, amounting to USD 2.2 billion. Investment-wise, France ranks as the 11th largest investor in India, with a cumulative Foreign Direct Investment (FDI) inflow of USD 10.5 billion from April 2000 to March 2023.
Source: India Times
On Monday, a delegation from China, comprising representatives from the China Knitting Industrial Association and the China Cotton Textile Association, visited the Bangladesh Garment Manufacturers and Exporters Association (BGMEA). The primary purpose of the visit was to explore potential collaborations, with a specific focus on the textile and apparel sector, aiming to mutually enhance trade benefits. The Chinese delegation, led by Lin Yunfeng, Chairman of the China Knitting Industrial Association, Jing Shenquan, Vice Chairman of the China Cotton Textile Association, and Wei Wei, Vice Director of the Department of the China Knitting Industrial Association, included representatives from various Chinese companies specialising in textile machinery, chemicals, and raw materials.During the visit, the delegation held meetings with BGMEA leaders, including President Faruque Hassan, Senior Vice President S. M. Mannan (Kochi), Vice President Shahidullah Azim, and Vice President (Finance) Khandoker Rafiqul Islam. BGMEA Directors Faisal Samad, Haroon Ar Rashid, Barrister Vidiya Amrit Khan, Md. Imranur Rahman, and Neela Hosna Ara were also present. Discussions focused on exploring trade and investment opportunities, fostering collaboration, and expanding the business scope between Bangladesh and China in the textile and apparel sector.
Source: Apparel Resource
The US dollar dropped on Wednesday, after rising in eight of the last 10 sessions, as investors consolidated gains spurred by a broad reversal of the greenback's decline in December. The US currency, however, cut its losses after data showed that business activity in the world's largest economy picked up in January and a measure of inflation eased. A gauge of prices charged by companies for their products fell to the lowest level in more than 3-1/2 years, data showed. Investors are now looking to Thursday's first reading of the US gross domestic product for the fourth quarter, and another inflation reading — the personal consumption expenditure (PCE) data — on Friday. The dollar index fell 0.4% to 103.1 after climbing to a six-week peak on Tuesday. Since the beginning of the year, the dollar has been up around 1.7% this year as stronger-thanexpected data and a pushback from central bankers has caused the market to rein in its expectations for rapid Federal Reserve interest rate cuts this year. Analysts said the US currency is still in the middle of a correction higher, until the Fed starts cutting rates. The dollar fell 1.2% in December and 1.5% in November, as Fed officials made dovish comments that suggested the central bank was nearing the end of its tightening cycle. "The correction in the dollar from the decline in Q4 2023 may not be over yet, although momentum indicators are getting stretched," said Marc Chandler, chief market strategist, at Bannockburn Forex in New York. "But I am not sure that we have broken out yet. I think we really have to get through not only tomorrow with the US GDP number and the ECB (European Central Bank), but also next Friday's jobs data. And it still looks pretty good." Chandler added that the generally stable economic picture should be enough to reduce the odds of a March rate cut. On Wednesday, however, US rate futures market priced in a more than 50% chance of easing at the March meeting, up from late Tuesday's 47% probability, but down from as much 80% factored in about two weeks ago, according to LSEG's rate probability app. For 2024, futures traders are betting on five rate cuts of 25 basis points each. Two weeks ago they expected six. The Fed is set to meet next week and is widely anticipated to hold interest rates steady. The dollar was down 0.8% against the yen at 147.18. The yen's rally tracked the rise in Japanese bond yields, which leaped to six-week highs. Bank of Japan chief Kazuo Ueda said on Tuesday the prospects of achieving the central bank's inflation target were gradually increasing, adding to expectations that the country might soon leave behind its ultra-loose monetary policy. Strong Japanese export data on Wednesday added to the positive mood. ECB MEETING COMING UP The euro was last up 0.4% at $1.0898 after falling to a six-week low the day before. It extended its rise after purchasing managers' index (PMI) surveys showed the euro zone economy's downturn eased somewhat in January, although it remained sluggish. The ECB meeting is coming up on Thursday, and the bank could give hints about when euro zone borrowing costs might start falling. Francesco Pesole, foreign exchange strategist at ING, said China's announcement that it will cut the amount of cash banks must hold as reserves in early February, in an attempt to boost lending and the economy, also helped the euro. "The euro zone is highly dependent on China, so it normally tends to have a good correlation with whatever happens (there)," he said. The onshore yuan strengthened after the announcement, touching a three-week high of 7.142 to the dollar. Sterling also climbed after a strong PMI reading caused traders to further dial back their bets on Bank of England rate cuts this year, a process that was kick-started by a strongerthan-expected inflation reading earlier this month. The pound was last 0.5% higher at $1.2754. Also, on Wednesday, the Bank of Canada held its key overnight rate at 5% and said while underlying inflation was still a concern, the bank's focus is shifting to when to cut borrowing costs rather than whether to hike again. The US dollar rose 0.2% versus the Canadian currency to C$1.3486
Source: Money Control
In 2023 Bangladesh has been competing with China in the last few months to turn the top exporter of readymade garment (RMG) to the United Kingdom. Bangladesh displaced China from the top apparel exporter position in the UK market four times between January and November last year—in January, March, April and May, according to UK government data. Despite remaining the second-largest apparel exporter in the UK market in terms of value, Bangladesh’s position was unchanged as the top RMG exporter there in terms of volume since 2022, followed by China. Although the overall apparel imports by the United Kingdom fell in the January-November period last year due to inflation, the share of Bangladesh’s exports rose there due to competitive prices. Bangladesh’s apparel export to the United Kingdom in between January and November last year fell by 11.58 per cent to £2.63 billion compared with that of £2.98 billion in the same period of 2022, according to a UK government factsheet on Bangladesh released recently. The United Kingdom’s apparel import from China in the same 11 month also dropped by 22.93 per cent to £2.83 billion compared with £3.68 billion in the same period of 2022. Its overall apparel import declined by 18 per cent year on year (YoY) in value and 13.67 per cent YoY in volume. In terms of volume, Bangladesh’s clothing exports to the United Kingdom, the third largest export destination for the former, also dropped by 10 per cent YoY in those 11 months. China’s apparel exports by volume to the United Kingdom in those 11 months dropped by 14.28 per cent YoY. In that period, UK apparel imports from Turkiye, Pakistan and Cambodia declined by 27.5 per cent, 12.65 per cent and 16.48 per cent YoY respectively. India’s and Vietnam’s apparel exports to the United Kingdom in those 11 months decreased by 12.53 per cent and 16.48 per cent YoY respectively.
Source: Fibre2fashion
Austria’s Lenzing Group, a leading global provider of specialty fibres for the textile and nonwovens industries, expects EBITDA of around €300 million for financial year 2023 (FY23), which is within the previously estimated range of €270 million to €330 million. However, the annual valuation of assets in accordance with IFRS for the entire Lenzing Group has resulted in a projected asset impairment of up to €480 million for FY23. The reasons for the impairment requirements are, on the one hand, continued uncertainties in the economic environment and, on the other hand, still increased raw material and energy costs as well as a higher interest rate environment, the company said in a press release. The impairment losses are non-cash effective and have no impact on the full-year EBITDA for FY23 but do affect EBIT for FY23. “In the third quarter of FY23, we responded to the persistently difficult market environment and launched a comprehensive performance programme, which we have been consistently implementing since then with a focus on positive free cash flow and stronger sales and margin growth. We can therefore confirm our earnings forecast with an EBITDA of around €300 million. The valuation adjustment in accordance with IFRS does not change the strategic orientation of the Lenzing Group,” said Stephan Sielaff, chief executive officer of the Lenzing Group. “The implementation of the performance programme is going according to plan. In the future, cost measures alone are expected to contribute more than €100 million to earnings annually, of which more than €50 million will already be effective for the financial year 2024. We are on target, particularly in terms of strengthening free cash flow, and we also achieved positive free cash flow in the fourth quarter. The revaluation of assets is now consistent and the right step for the future direction,” said Nico Reiner, chief financial officer.
Source: Fibre2fashion
RUDOLF, a leading German provider of specialty chemicals, has unveiled a significant advancement in textile technology by introducing bio-based solutions for its HYDROCOOL® product line, which is known for its moisture management capabilities. The newly introduced RUCO®-PUR BIO SLB and FERAN® BIO ICR represent a development in textile chemistry, offering sustainability, performance, and longevity. For years, HYDROCOOL® technologies have been the benchmark for effectively wicking moisture away from the skin to ensure comfort and dryness for athletes and active individuals. RUDOLF has now elevated this performance through the incorporation of bio-based raw materials. These renewable ingredients deliver the following benefits: Reduced environmental impact: By utilising bio-based materials, RUDOLF diminishes its dependence on traditional petroleum-based raw materials, thereby reducing the environmental footprint of its products. Superior performance: The new bio-based formulations match the efficiency of traditional HYDROCOOL® products and offer wash resistance. RUCO-PUR BIO SLB is a bio-based finishing agent suitable for synthetics, cellulosics, and blends, boasting a 43 per cent bio-based content and marking a significant stride towards a sustainable textile industry. FERAN® BIO ICR is a bio-based soil release agent specially designed for polyester and its blends, featuring an 87 per cent bio-based content, reinforcing RUDOLF’s commitment to sustainable innovation. With these new offerings, RUDOLF continues to establish the benchmark for textile performance and sustainability.
Source: Apparel Resource
Tunisian textile workers recently received a 20 per cent wage hike distributed over 2024, 2025 and 2026. The raise followed an agreement signed early this month between IndustriALL Global Union affiliate Fédération Générale du Textile, de l'Habillement, Chaussure et Cuir (FGTHCC-UGTT) and the employers’ organisation Fédération Nationale du Textile (FENATEX-UTICA). The agreement, reached after negotiations hosted by the general labour inspection headquarters and supervised by the country’s ministry of social affairs, includes a wage increase of 6.5 per cent for 2024 and 2025, and a 7 per cent increase for 2026. A seniority bonus of 1 per cent for every second year of service was announced as well. The agreement also includes revisions of a number of regulatory aspects, including amending the chapters of the joint sectoral textile agreement on promotions. The new revisions ensure that the same grade for promotions is maintained, guaranteeing an upward career path, an IndustriALL press release said. “The increase is important to restore the purchasing power of workers in the sector,” said FGTHCC-UGTT general secretary Habib Al-Hazami.IndustriALL general secretary Atle Hoie said: “This is an important union win given the difficulties experienced by the Tunisian economy. It is the result of the hard work of FGTHCC-UGTT over many years in organising and improving the sectorial social dialogue.”
Source : Fibre2fashion
Chemical and agricultural solutions developer BASF and Spanish fashion company Inditex have announced a “breakthrough” in textile-to-textile recycling with the introduction of loopamid, a nylon material made entirely from textile waste. inditex‘s Zara brand has used BASF‘s loopamid, a polyamide 6 (PA6), also known as nylon 6 to produce a jacket that is now available worldwide. Loopamid is reported to have the capability to recycle post-industrial and post-consumer textile waste, including fabric mixtures like PA6 and elastane. The discarded textiles for feedstock were classified, sorted and provided by ModaRe, a take-back programme operated by the charity organisation Carita.The technology behind loopamid allows for textile-to-textile recycling, ensuring that fibres and materials can be recycled over multiple cycles while maintaining characteristics identical to those of conventional virgin polyamide. Zara is said to have embraced the “design for recycling” approach with its new jacket as all of its elements from fabrics and buttons to filling, hook and loop, and zipper are crafted from 100% loopamid. BASF’s monomers division president Dr. Ramkumar Dhruva explained: “Our loopamid has the potential to revolutionise the PA6 market for the better. We are in the process of scaling up our technology to serve our customers with commercial quantities.
Source: Just Style
The 18th Dhaka International Textile and Garment Machinery Exhibition (DTG)-2024 will be held at the International Convention City Bashundhara (ICCB) in Dhaka from February 1 to 4. Jointly organised by Bangladesh Textile Mills Association (BTMA) and Yorkers Trade and Marketing Service Co., this exhibition is the largest in the textile and garment industry of Bangladesh, says a press release. Over 1,100 machinery manufacturers from 32 countries are expected to join the exhibition, which will remain open from 12:00pm to 8:00pm daily. The exhibition aims to introduce local entrepreneurs to cutting-edge machinery and technological advancements in the field of textiles.
Source: Financial express
