Ranchi: Industries in the textile, leather and food processing sectors will now be the prime focus for the state government as the quick-implementation mantra is being practised for MoUs (Memorandum of Understanding) worth Rs 3.10 lakh crore that were inked during the recently-concluded Global Investors' Summit. The Raghubar Das government, a senior government official said, has identified top 25 companies for closer co-ordination. Work on the various projects will begin in the next six to eight months. According to the official, there are two reasons behind prioritizing the above mentioned sectors. First, work on these projects will generate employment for the local masses and can begin quickly. Second, the state government envisages that the 210 MoUs, once implemented, will generate employment to over 6.02 lakh people. Most of the industrial projects which have been put on the hyper-drive will be set up in Ranchi, Jamshedpur and Bokaro, the official said. Implementation of these projects is being supervised by department of industries, mines and geology, which bagged 121 MoUs worth Rs 2.10 lakh crore during the summit. These 121 proposed projects are expected to generate at least 2.04 lakh direct and indirect job opportunities in the state. On Wednesday, chief secretary Rajbala Verma held a meeting with top bureaucrats to discuss the implementation of the MoUs. The meeting was an extension to the MoU review meeting held by chief minister Raghubar Das on Tuesday. In the meeting, Das announced the formation of Jharkhand Investment Board (JIB) to hasten the implementation of short-term projects. The chief minister will head the JIB and hold monthly review meetings to take stock of project implementation. Verma, who has been appointed as the vice-president of the board, will hold weekly meetings with top secretaries of various departments to resolve problems which crop up during implementation of the MoUs.
Source: The Times of India
Kolkata port will face stiff competition from Vizag deep-sea port on handling Nepal’s $2-3 million third country import cargo. Container shipping liner Maersk is expected to deliver the first batch of containers at Vizag port in the first week of March, Deputy Chairman PL Haranadh told BusinessLine. Maersk is the first liner to offer the aggregation services as part of market making for Vizag. Haranad is hopeful that commercial success of the initiative will bring in other liners. Kolkata port has been enjoying monopoly over Nepalese cargo. However, it is a right step for India to offer Nepalese importers wider and better options and, counter Beijing’s effort to promote rail-road trade options through the Nepal-China land border. Container Corporation of India (Concor) has already offered lucrative terms for transferring the cargo by rail from Vizag to Nepal. Concor runs a joint venture handling facility inside Nepalese territory at Raxaul (Bihar)-Birgunj (Nepal) border. To attract Nepalese traders to try the new option, Concor has decided to run rakes (a cargo train) with a minimum 60 per cent capacity, thereby agreeing to underwrite the losses, if any. Ganesh Lath, a Nepalese importer and former president of the chamber of commerce at Birgunj, the commercial capital of Nepal, felt that Concor services would encourage Nepalese traders to shift cargo from Kolkata to Vizag.
Source: Business Line
Indian could be self-sufficient in silk production by the year 2020 as the country has recorded an annual growth rate of 19 per cent, according to the Central Silk Board (CSB). The current silk output of India is currently between 28,000 metric tonnes (MT) to 30,000 MT and the country aims to stop importing silk from China in the next three-four years. Silk production in India is growing year to year, said media reports quoting K M Hanumantharayappa, chairman of CSB. India is witnessing a 19 per cent growth in silk production and aims to produce 34,000 MT to make it self-sufficient. He said that the target is achievable if the country continues to keep its growth momentum. About 80 per cent of the total global silk output comes from China and India produces 13 per cent of the total output. Silk imports from China have already reduced from 6,500 MT to 3,500 MT, said Hanumantharayappa. While China only produces mulberry silk, India produces multiple varieties including muga and tassar, said the chairman. He also added that CSB is offering assistance in the form of subsidies on machines, technological support and free training to farmers. Hanumantharayappa also urged state governments to help increase silk production by supporting farmers and offering monetary benefits to them. (KD)
Source: Fibre2fashion
The International Monetary Fund (IMF) foresees India’s economic growth rebounding to 7.2 per cent next fiscal, up from the projected 6.6 per cent in 2016-17 after demonetisation. In its Article IV consultations report, the contents of which were released in Washington on Wednesday, the IMF said that the post-November 8, 2016 cash shortages and payment disruptions caused by the “currency exchange initiative” had undermined consumption and business activity, posing a new challenge to sustaining the growth momentum. Tailwinds from a favourable monsoon, low oil prices and continued progress in resolving supply-side bottlenecks, as well as robust consumer confidence will support near-term growth as cash shortages ease, IMF added. Under Article IV of the IMF’s Articles of Agreement, the IMF holds bilateral discussions with members, usually every year. A staff team visits the country, collects economic and financial information, and discusses with officials the country’s economic developments and policies. The staff prepares a report after returning to Washington, which forms the basis of discussion by the Executive Board. IMF’s Executive Board had on January 25 concluded its Article IV consultation with India.
Uneven recovery
Meanwhile, in its Article IV report, IMF has noted that investment recovery is expected to remain modest and uneven across sectors, as de-leveraging takes place and industrial capacity utilisation picks up. With temporary demand disruptions and increased monsoon-driven food supplies, inflation is expected at about 4.75 per cent by early 2017 — in line with the Reserve Bank of India’s inflation target of 5 per cent by March 2017. The IMF also said that supply-side reforms , particularly in agriculture, continued fiscal consolidation, and relieving impediments to monetary transmission are crucial to retail low inflation in the medium term. The Fund expects the current account deficit to widen to about two per cent of GDP over the medium term as domestic demand strengthens further and commodity prices gradually rebound. Also, the 2016-17 Budget deficit target of 3.5 per cent of GDP (equivalent to 3.8 per cent of GDP in IMF terms) will likely be achieved.
GST boost
Continued progress in reforms bodes well for a marked improvement in medium-term prospects, with the adoption of goods and services tax poised to raise India’s medium term GDP growth to above eight per cent, IMF has said. The Executive Directors’ of the IMF acknowledged the authorities’ strong policy push for cleaning up bank balance sheets and welcomed legislation establishing the new bankruptcy code. They, however, noted that elevated corporate sector risks and heightened levels of non-performing assets in public sector banks continue to pose risks to banks’ soundness. Directors’ also emphasised the importance of augmenting capital buffers and continued governance reform of these banks, strengthening the resolution regime for distressed bank assets by augmenting the capacity of newly established mechanisms, and further measures to develop corporate debt markets, as key to enhancing the financial system’s ability to contribute to growth.
Source: Business Line
A global agreement to boost trade by cutting red tape and streamlining border checks came into force on Wednesday, promising a 0.5 percent lift to the world economy by 2030 even as it faces renewed protectionism from the United States. World Trade Organization Director General Roberto Azevedo hailed the start of the pact, which he said was the "biggest reform of global trade this century". He also sought to play down potentially difficult trade issues with U.S. President Donald Trump who extols an "America First" policy, has complained about "unfair trade" and has suggested he might introduce various tariffs. The United States is a party to the new WTO agreement, having signed it under the previous administration of Barack Obama. The WTO, an international forum for resolving trade disputes and negotiating new trading rules, believes its new agreement will cut trade costs by 14.3 percent on average, and by much more in poorer countries, adding 2.7 percent to global exports by 2030. That is estimated to be greater than if trade tariffs were eliminated globally. The WTO commissioned several studies to estimate the size of the potential boost to exports. One put it at $3.6 trillion, but the WTO uses the more conservative $1 trillion, a figure that Azevedo said he was very comfortable with. Signatory governments commit to harmonising border processes, speeding up customs clearance of goods, publishing procedural information online, accepting digital documents where possible and limiting fees imposed on traders. It will primarily be of help in countries, often poorer ones such as in Africa, with records of border delays and inefficient bureaucracy. Arancha Gonzalez, head of the International Trade Centre, a U.N.-WTO joint agency that helps companies to export, said exporting would be faster, more efficient and predictable, bringing a boon to small businesses and independent cross-border traders. "The (agreement) will enable more (smaller businesses) to break out of local and national markets, and tap into regional and international value chains," Gonzalez said. The Paris-based International Chamber of Commerce said the agreement's entry into force was a watershed moment that could support the creation of 20 million jobs worldwide, the vast majority in developing countries. Agreement of the pact in 2013 was widely seen as a breakthrough moment for the WTO because it ended more than a decade of stalemate on the moribund "Doha round" of trade talks. It signalled a more pragmatic approach of achieving what was doable rather than trying to swallow a huge range of agreements in one go. Talks on various different trade reforms are now underway at different speeds. The agreement needed acceptance by two-thirds of the WTO membership to come into force, and it finally crossed the threshold on Wednesday, with Rwanda, Oman, Chad and Jordan bringing the total to 112 of the WTO's 164 members. The ratifications were a vote of confidence in the global trading system, and it sent a message about the power of trade to create jobs and growth around the world, Azevedo said.
Source: Financial Express
Snapping its two-day rising trend, the rupee today lost four paise to end at 66.96 against the US dollar on fresh demand for the American currency from banks and importers. Strong foreign capital outflows also affected the rupee value against the dollar. Foreign portfolio investors (FPIs) sold shares worth a net Rs 1,435.76 crore yesterday, as per provisional data. Persistent rise in the stock market failed to restrict the rupee’s loss against the dollar, a forex dealer said. The rupee resumed lower at 66.95 as against the Monday’s closing level of 66.92 at the Interbank Foreign Exchange market. The domestic unit hovered between 66.87 and 67.01 per dollar before ending at 66.96, showing a loss of four paise or 0.06 per cent. The dollar had gained by 15 paise, or 0.22 per cent, in the previous two trading days. The dollar index was trading higher by 0.21 per cent against a basket of six currencies in the late afternoon trade. Overseas, the dollar eased against the yen and other rival currencies in range-bound trade on Wednesday, with upside for the US currency stymied as investors cashed in on recent gains. Earlier, the dollar opened lower as investors awaited the minutes of the Federal Reserve’s latest meeting for clues as to the pace of interest rate hikes, while the euro nursed losses and remained pressured by European political woes. Meanwhile, US oil prices stayed at a 19-month high on Wednesday after OPEC leaders affirmed that the supply cut effort by heavyweights producers was making headway. On the New York Mercantile Exchange, light, sweet crude futures for delivery in April traded at USD 54.52 a barrel in the Globex electronic session. US crude prices closed up 55 cents at USD 54.33, the best closing level in more than a year. Meanwhile, the benchmark Sensex gained by another 103.12 points, or 0.36 per cent, to close at 28,864.71 today. In forward market today, premium for dollar eased on mild receivings from exporters. The benchmark six-month premium payable in July edged down to 142-144 paise from its previous level of 145-147 paise and far forward January 2018 contract also declined to 297-299 paise from Monday’s closing level of 298-300. The RBI fixed the reference rate for the dollar at 66.9644 and for the euro at 70.5403. In cross-currency trades, the rupee finished higher against the pound sterling at 83.30/32 from 83.46/48 and euro also rose against the Euro to settle at 70.29/31 from 71.10/12. The domestic currency eased against the Japanese Yen to 59.24/26 per 100 yen from 59.17/19 previously.
Source: Financial Express
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$ 55.01 per barrel (bbl) on 22.02.2017. This was lower than the price of US$ 55.37 per bbl on previous publishing day of 21.02.2017. In rupee terms, the price of Indian Basket decreased to Rs. 3684.01 per bbl on 22.02.2017 as compared to Rs. 3708.85 per bbl on 21.02.2017. Rupee closed stronger at Rs. 66.96 per US$ on 22.02.2017 as compared to Rs. 66.98 per US$ on 21.02.2017. The table below gives details in this regard:
|
Particulars |
Unit |
Price on February 22, 2017 (Previous trading day i.e. 21.02.2017) |
Pricing Fortnight for 16.02.2017 (Jan 28, 2017 to Feb 13, 2017) |
|
Crude Oil (Indian Basket) |
($/bbl) |
55.01 (55.37) |
54.67 |
|
(Rs/bbl |
3648.01 (3708.85) |
3683.12 |
|
|
Exchange Rate |
(Rs/$) |
66.96 (66.98) |
67.37 |
Source: PIB
Polluting industrial units across the country would be shut down if they do not have functional primary effluent treatment plants (PETPs) to stop the release of untreated waste in water bodies within three months after notice, the Supreme Court ruled today. Issuing a slew of directions, a bench headed by Chief Justice J S Khehar directed state pollution control boards (PCBs) to issue a common notice by way of public advertisement to all industrial units to ensure that they have set up PETPs as mandated under the law to carry out industrial activities. "We direct concerned state pollution control boards to issue notice to all industrial units by way of a common advertisement requiring them to ensure that they have functional primary effluent treatment plants. "On the expiry of three months notice period, the concerned state pollution control boards are mandated to carry out inspections at industrial units as to whether they have functional PETPs," the bench, also comprising Justices D Y Chandrachud and S K Kaul, said. If industrial units do not have functional PETPs, then they will not be allowed to function any more, the court said. The bench further directed that the state PCBs will ask the concerned electricity supply boards to disconnect the power supply to the defaulting industrial units, which could resume their functions only after they made their PETPs functional. While disposing of a PIL on the issue, the top court said though the setting up of PETPs was required to be done by individual industrial units, the government bodies will have to establish Common Effluent Treatment Plants (CETPs) across the country within three years after acquiring land and completing other formalities. The states will have to submit reports with regard to setting up of CETPs to the concerned bench of the National Green Tribunal. The local civic authorities could formulate norms to levy cess from users if they face financial crunch in the setting up of and running the CETPs. The bench, however, left the issue of setting up of zero liquid discharge (ZLD) plants to the authorities concerned after they complete the first round with regard to CETPs. The apex court had earlier issued notice to the Centre, the Ministry of Environment and Forests, the Central Pollution Control Board (CPCB) and Chief Secretaries of 19 states, including Gujarat, on the plea filed by NGO Paryavaran Suraksha Samiti on the issue of pollution in water bodies, including ground water. The bench referred to the constitutional provisions dealing with public health, sanitation and solid waste management and said that civic authorities were empowered to lay down norms to levy cess on users if they do not have sufficient resources to set up or run the CETPs. The norms have to be finalised by March 31 of this year so that it can be made applicable in the next financial year, it said, adding that in case it is not done, then the respective state governments will have to bear the cost of running CETPs. It, however, clarified that if municipal or other local bodies have sufficient funds, then they will not levy any charges. The bench, in its order, said the secretaries of Urban Development Ministry or local bodies, as the case may be, would be accountable for ensuring compliance of its order. The court also passed similar directions with regard to setting up of sewerage treatment plant (STP) to deal with waste, other than industrial. "Simulataneously, we are of the view that malady of sewer should also be dealt accordingly. We, therefore, direct authorities to set up STPs within the same time-frame as expressed earlier," the bench said. It further said "the information shall be furnished to the Central Ground Water Authority which shall evaluate the data and furnish it to the NGT bench concerned." The bench directed the state pollution control boards to make provision for "online real-time continuous monitoring system" to display emission level in the public domain on their portals. Initially, the PIL was restricted to Gujarat but later its scope was widened by the apex court, which had granted the last opportunity to the states on January 16 to file their responses.
Source: PTI
Microplastics from tyres and textiles are a bigger source of marine pollution than the breakdown of larger plastic waste in some areas, says the IUCN. Up to 30% of plastic released into the oceans each year comes from primary microplastics, not the disintegration of larger pieces, a report found. Debris from tyre abrasion and synthetic fabrics are the main sources, they say. The IUCN reviewed data from seven global regions to look at how much of the estimated 9.5 million tonnes of new plastic waste released into the oceans each year comes from primary microplastics. These are tiny plastic particles from the likes of consumer products rather than the degradation of larger bits of plastic in the oceans. The report found between 15% and 31% of plastic pollution came from primary microplastics, of which the biggest contributors (almost two-thirds) were abrasion of synthetic textiles, while washing, and abrasion of tyres, while driving. Synthetic rubber, made from a variant of plastic, makes up around 60% of the rubber used in tyres. Other sources included microbeads in cosmetics, which contributed about 2% of the releases to the ocean globally. François Simard, deputy director of IUCN's marine programme, said the findings came as a surprise. "We discovered that most of the microplastics are coming from either the clothes or from the tyres," he told BBC News. "Microplastics are going everywhere in the sea and into the food chain, let's close the plastic tap." IUCN director general Inger Andersen said the report was "a real eye-opener". "Our daily activities, such as washing clothes and driving, significantly contribute to the pollution choking our oceans, with potentially disastrous effects on the rich diversity of life within them, and on human health," she said. The release of microbeads from cosmetic products has received widespread publicity, resulting in action from manufacturers. However, solving plastic pollution from tyres and synthetic clothes will be harder to address. Joao de Sousa, marine project manager for the IUCN's global marine programme, said solutions must include product and infrastructure design as well as consumer behaviour. For example, synthetic clothes could be designed to shed fewer fibres and consumers can act by choosing natural fabrics. In parts of the world, such as North America, primary microplastics are a bigger source of marine plastic pollution than plastic waste, according to the report. Meanwhile, synthetic textiles are the main source of primary microplastics in Asia and tyres dominate in the Americas, Europe and Central Asia. Last month, a separate report by a scientific body that advises the UN on marine environmental protection highlighted concerns about debris from vehicle tyres.
Source: BBC News
Gautam Hari Singhania, Chairman and Managing Director, Raymond Group Aiming to improve services, fabric-to-fashion company Raymond Ltd has started reaching out to customers by setting up manufacturing units closer to the market. However, "we continue to stay committed to the ‘Make in India’ initiative", says Gautam Hari Singhania, Chairman and Managing Director of Raymond Group, in an exclusive interview with Dilip Kumar Jha. Edited excerpts: Raymond has expanded its footprint through the acquisition of a garment unit in the south, land in Ethiopia and office spaces in many countries to woo the Indian community abroad. What is the strategy? We are the largest manufacturer of suits in the country. Our garment business is based largely on B2B exports, serving some of the top global brands in fashion and retail space. Out of the 55 countries across five continents where we supply our products, the US accounts for 30 per cent of the total supply, while Europe and Japan account for 25 per cent and 20 per cent respectively. Exports account for 15 per cent of the overall revenue. We now want to move from an 'export-only’ model to an approach focusing on developing the market and increasing business by establishing a face to the name in select regions. We have shortlisted a few markets where we would like to be present and invest in building deeper relationships and strategic partnerships with fashion brands and top retailers across the US, Europe, UK, Middle East, South Asia and Japan. We have recently set up an office in Dubai to cater to customers in Gulf countries, South and Central Asia and East Africa. Our existing London office caters to customers in UK and Europe. We are in the process of opening an office in New York that will primarily cater to the customers in North America. We continue to stay committed to the ‘Make in India’ initiative through capacity expansion of Kolhapur and Yawatnal plants. Moreover, we are setting up a greenfield textile project in Amaravati. The idea behind setting up a garments unit in Ethiopia, the fastest growing and stable economy in the African continent, is to mitigate our export risks. Ethiopia has duty free access to the US and European markets, making our products competitively priced for global markets. With over 2 million jackets per year, Ethiopia will be among the largest single-location suit manufacturing facility in the world. Ethiopian unit will entail a capex of Rs 150-cr in phase-1. Most of Raymond’s profit is coming from the fabric segment. This means that the apparel segment needs some boost. How is Raymond planning to strengthen it? Raymond is a strong player in the fabric segment and commands over 80 per cent of the market share. Over the past three years, we have aggressively invested in manufacturing shirts in the B2C branded fabric portfolio and have now emerged as a dominant market leader in this segment too. Apparels is another strategic business for Raymond with four power brands in our portfolio– Raymond, Park Avenue, Parx and Color Plus. We are among the three biggest apparel brand players in India. For the product, our focus is to sharpen the brand's positioning by leveraging each brand to its full potential, hence capturing the ‘full wallet’ of our customers. We have recently introduced the 'RaymondWhites' series in the country, coupled with other world-class launches, including light-weight jackets and top-end sweaters. We are also expanding our retail footprint through exclusive brand stores and multi-brand stores. Besides expansion, we are also renovating and digitising our existing stores to enhance the shopping experience in retail. Our apparel business has been witnessing strong double-digit growth over the past three years and we will continue to scale business to attain profitable market leadership in this segment. In your apparel segment, the youth-attracting brands aren't as appealing as other brands in this industry. How will you change consumers' perception to catch the youth's fancy? Raymond caters to over 20 million unique users across demographics and age groups. We have over four million customers on our loyalty platform. We cater to all consumer segments with our diversified product formats and price spectrum. Each brand in our portfolio has a sharp role assigned in the context of brand positioning and product offering. Like Parx is a sharp youth-oriented brand targeting customers aged between 18 to 24 years. Parx is the fastest growing casual brand in the country offering value based pricing. Whereas, Park Avenue has been a preferred choice for the 'alpha male' over the years with a strong focus on fashion formal offerings for the young generation. The fact that we have extended our product line to enter the women’s apparel and innerwear segments is testimony to the brand’s successful journey. Denim has been a growing segment faster than any other segments in the textile sector. While you have already captured some fancy, are there any plans to strengthen your the denim segment? Denim is indeed a fast growing segment in the Indian context. It is growing increasingly popular across all demographics. Our denim division is a market leader in the fabric and garment segment. Through various trade shows abroad and a strong network in India, we keep launching new and innovative products to cater to the ever-changing requirements of our customers. We are also increasing our investments in design and development apart from using local and international talent for support. Many of your competitors have tied up with global brands. Is there any such proposal in Raymond's kitty? Given the fact that Raymond is a market leader in the fabric and apparel segment and the No. 1 retailer in the country, we keep getting multiple proposals from global brands and fashion retailers for strategic partnerships. As a policy, we keep evaluating these options. However, our focus at present is to upscale and grow our existing in-house power brands– Park Avenue, Raymond Ready-to-Wear, ColorPlus and Parx. Demonetisation has lowered textile sales. What is its impact on Raymond and how are you coping with this challenge? The cash-dependent wholesale channel got temporarily impacted due to demonetisation and the squeeze in liquidity affected our business for a short period of time. As the cash is getting restored, we are witnessing a pick-up in sales. Demand is now coming back to normal and we are expecting a better performance in the current quarter. Post demonetisation, we have assisted our strategic vendors and channel partners in terms of facilitating finances and credit support. We have integrated our stores with all leading digital payment gateways, e-wallets and we are also offering EMI facility for large purchases. Demonetisation is positive for the organised sector businesses that are tax-compliant and are instrumental in formalising the economy. Overall, I believe that this bold step should help improve India’s fiscal and monetary position.
Source: Business Standard
|
Polyester Staple Fibre ( PSF ) |
|||||
|
Market |
22/02/17 |
23/02/17 |
% Change |
||
|
FOB Shanghai ($/Mt) |
1,140 |
1,140 |
0.0% |
||
|
China(RMB/ton) |
8,750 |
8,750 |
0.0% |
||
|
|||||
|
Market/Variety |
22/02/17 |
23/02/17 |
% Change |
||
|
POY 150 D/48 F |
8,950 |
8,950 |
0.0% |
||
|
DTY 150 D/48 F |
10,550 |
10,550 |
0.0% |
||
|
FDY 68 D/24 F |
9,250 |
9,200 |
-0.5% |
||
|
Polyester Filament Yarn ( US$/ton ) |
|||||
|
Market/Variety |
22/02/17 |
23/02/17 |
% Change |
||
|
POY 150 D/48 F |
1,202 |
1,203 |
0.1% |
||
|
DTY 150 D/48 F |
1,441 |
1,442 |
0.1% |
||
|
FDY 68 D/24 F |
1,257 |
1,251 |
-0.5% |
||
|
Acrylic Staple Fibre |
|||||
|
Market |
22/02/17 |
23/02/17 |
% Change |
||
|
China(RMB/ton) |
14,725 |
14,725 |
0.0% |
||
|
|||||
|
Market |
22/02/17 |
23/02/17 |
% Change |
||
|
China(RMB/ton) |
16,200 |
16,200 |
0.0% |
||
Note: The above prices are based on available sources. SRTEPC is not responsible for the correctness of the same.
Gross Domestic Product (GDP) increased by 0.7%, up from 0.6%, according to the Office for National Statistics (ONS).The upward revision is mainly due to manufacturing industry having done better than thought. The ONS cut its estimate for growth in 2016 as a whole to 1.8%, down from the 2% it forecast last month. This downward revision pushes UK slightly below Germany, with an estimate of 1.9%, in the G7 growth league, said John Hawksworth, chief economist at PwC, "though the difference is well within the margin of error on any such early GDP estimates." The downward revision appeared to have been prompted by weaker North Sea oil and gas production during the first six months of 2016, and did not reflect the underlying strength of the UK economy, he added. "Excluding oil and gas output, estimated UK GDP growth might actually have been revised up in 2016," added Mr Hawksworth. The third revision of the figures will be on 31 March, after the Budget on 8 March. "Unfortunately, this means that the chancellor won't be able to say that the UK was the fastest-growing G7 economy in 2016 in his upcoming Budget - Germany grew by 1.9%," said Capital Economics UK economist Paul Hollingsworth. The ONS also said there had been a slowdown in business investment, which fell by 1% compared with the three months to the end of September. It attributes that to "subdued growth" in investment in information and communications technology equipment, as well as "other machinery and equipment". Shilen Shah, a bond strategist at Investec Wealth & Investment, said: "Somewhat disappointingly, business investment fell on the quarter, with hints that Brexit uncertainty is hitting business confidence." However, the dominant services sector continued to grow steadily, "due in part to continued growth in consumer spending, although retail showed some signs of weakness in the last couple of months of 2016, which has continued into January 2017," according to ONS head of GDP Darren Morgan. "UK GDP may have gained some momentum into the end of 2016, but recent news from UK seems to have shown that that momentum has been lost in the early weeks of 2017," said Jeremy Cook, chief economist at the international payments company, World First."Services growth is set to slow, buffeted by rising inflation and slowing real wage gains and a consumer that is not waving but drowning." This was a point picked up by Samuel Tombs, chief UK economist at Pantheon Macroeconomics, who tweeted. "UK GDP breakdown shows real household spend up 0.7%, even though employees' compensation grew by just 0.1%. This is not sustainable growth."
Source: BBC
TEMPO.CO, Jakarta Ade explained that a number of products manage to slip into our domestic market because it is still recorded in the same tariff with other products that cannot be produced in-house. The government can place a more specific rate in order to prevent the troubled product from entering Indonesia’s market, while at the same time, ensuring - Illegal imported textile product continues to dominate Indonesia’s domestic market. The origin of around 16.7 percent of all textile product consumption could not be traced. Secretary General of the Synthetic Manufacturers Association of Indonesia (Apsyfi), Redma Wirawasta, predicted that the textile and garment products that were illegally available throughout 2016 reached 310,000 tons. The number originates from textile consumption volume deviations against the volume of the domestic and import products that was recorded by the Central Statistics Agency (BPS). Redma estimated that Indonesia’s total textile consumption throughout 2016 reached 1.86 million tons. Meanwhile, the sales volume of domestic textile products reached 1.4 million tons and the import volume reached 151,000 tons. “The volume of public’s consumption is larger than its production and import. Where do they purchase these items? These are truly items that are not recorded,” Redma said on Tuesday, February 21, 2017. “We suggest creating a regulation on permissible imported textile products that have not been produced in-house. This is to avoid the same thing reoccurred,” Redma said. Meanwhile, the Chairman of the Indonesian Textile Association (API), Ade Sudrajat, said that the government can prevent imports of similar products available in the country through the tariff changes. that the products that are not produced in-house can enter the market without hindrance. BISNIS
Source: Tempo.com
Campus Sutra is looking at becoming a $100-million brand by 2020 and plans to open offline stores soon.Campus Sutra is an online, on-trend fashion brand for the youth based in Bangalore. Founded in 2013, it was originally started by sister duo Khushboo and Sonal Agarwal who were later joined by their brother Aditya, and Khushboo’s husband, Dhiraj. Campus Sutra is a youth brand for apparels and accessories based on a slice of life of a young person in India. It designs apparels and accessories that on-campus youngsters in India can identify with. The company offers its customers 'college stream-based' T-shirts, sweatshirts, caps, jerseys, bags, mugs, backpacks, and a lot more. The streams covered include management, engineering, medical, science, arts, law, techies, accountants, sports, music, cricket, and more. Its customer is the average 18 to 25 year-old who is aspirational and looking to express themselves with apparel that resonates their personalities. The range of cool, trendy merchandise is designed to reflect the unique aspirations of today’s generation. Campus Sutra is the largest bootstrapped brand in the Indian apparel industry and has grown from revenues of Rs 1.65 crore in FY 2013 to Rs 16 crore and Rs 40 crore in FY2014 and FY2015; the company is on track to reach revenues of Rs 100 crore on the back of expansion in the range and other exciting plans. The venture has scaled from being focused exclusively on custom merchandise to offering an entire range of apparel and accessories based on a slice-of-life for young Indians. The initial investment in the company was $1 million and a further $2 million has been raised from financial institutions. Challenges and opportunities In running a bootstrapped firm, one of the biggest challenges that one has to face is to establish credibility of the organization among stakeholders. For a funded company, the credibility may come with investment and the investors backing it, but for a bootstrapped company, the founders' vision needs to come through and translate into something that stakeholders can trust. This perhaps was the biggest challenge that Campus Sutra faced as well. However, the company also stands out from others in the field, in a number of ways. While most players in the industry focus on front-end metrics like revenue growth, repeat purchase clicks etc., Campus Sutra considers back-end metrics like inventory turnover ratio, sell-through rate, and time to market etc., key to its business. The company’s inventory turnover ratio is 45 to 60 days (compared to 6 to 9 months average for the industry). Campus Sutra takes just 21 days from design to market stage, against the industry norm of 12 months. It is also the largest youth college product range online currently. Campus Sutra has challenged the conventional way in which an apparel brand is built here in India. The design philosophy of most brands in India is limited to showcasing the brand logo in an innovative manner or ending up replicating designs that are relevant to developed countries. Online fashion businesses in India have been excessively focused on the “ONLINE” component and have paid too little attention to the “FASHION BUSINESS” component of the venture. Fashion business world over are built predominantly on 2 platforms – back-end innovation and design differentiation. With the advent of e-commerce, the channel end of the business has become equally important. Campus Sutra believes that the competencies that the company is building in back end design will be the key success factor. This is also perhaps the key differentiating factor when it comes to competition. Market size and focus Campus Sutra is currently working with a gross margin of 30% and has broken even in the first year of its existence. The company has also initiated work on building proprietary offline distribution channels. The current market size is $4 billion and expected to be $20 billion by 2020. Campus Sutra is growing at 300% and is hopeful of maintaining this exponential rate for the next 2 years. All products sold by Campus Sutra are manufactured under its own label through its network of manufacturers in Ludhiana, Tirupur, Kolkata, and Mumbai in India, and China and Bangladesh internationally. Using online channel as the primary distribution network, Campus Sutra ships 5,000 orders/day. Campus Sutra aims to be known for its innovations as a company and achieve “cult” What the future holds status among the target audience. Product innovation is a big focus area for the company. While Campus Sutra continues to bring designs that resonate with the audience, it is also committed to bringing to the market a range of apparel and accessories built around a young person’s lifestyle.The company will continue to push the envelope when it comes to truly optimizing the potential in the segment it addresses. Campus Sutra is looking at becoming a $100-million brand by 2020 and plans to open offline stores soon.
Source: Business World
BRISTOL - The UK-based Soil Association's 2017 Organic Market Report suggests a growing interest in organic textiles, with Soil Association Certification licensees increasing sales by 30 per cent to £28 million. The report claims a key growth driver is that more and more consumers now recognise the importance of organic when making purchasing decisions. "Overall, the UK organic market is evolving from food into lifestyle and future predictions show there will be greater crossover between people who buy organic food and non-food items including textiles and health and beauty products," says the report.
Source: Eco Textiles
Brenda Gael Smith has a passion for textile art. A textile artist herself, her interest goes far beyond her own work and she has curated the exhibition A Matter of Time: Exploring the Fourth Dimension in Cloth, showing at Gosford Regional Gallery until March 22. “This is the third textile exhibition I have curated for the gallery — the previous two were based on a sense of place and colour,” Smith said. “But this time I decided to get more philosophical with the theme. “Time is such an interesting subject and a very rich theme for artists to explore.” Smith has collated the work of 32 artists from Australia, New Zealand, the United States, United Kingdom and Canada, expressing their ideas about time through a range of textile techniques and styles. “They came up with all sort of approaches I hadn’t even thought of,” she said. “My aim as a curator is to showcase the richness of the textile medium. “Time is something we are all familiar with. The rising and setting of sun is part of our daily routine. “But then there is the scientific concept of space travel and travelling through time which are also explored. Some of the works in the A Matter of Time exhibition “There are also some works featuring fossils — a step back in time. “There are clocks, of course, but also some less traditional methods of measuring time — such as a cross-section of a tree. By looking at a tree’s growth rings you can see what was happening at particular times during its life. “There is also a work featuring a pregnant woman — a look at the time of pregnancy. “All of the works are made with fabric, using all sorts of techniques. “Some are painted on cloth, some artists have cut small pieces of fabric and stitched them together in an applique collage. “It is a fascinating exhibition.”
Source: Daily Telegraph
BEIJING: Pakistan Ambassador to China, Masood Khalid Tuesday invited the Chinese companies to take advantage of investment-friendly policies of present government and come forward to invest in textile and garments sectors in Pakistan. “The government is focusing for the development of textile and garments sectors in Pakistan as it is considered to be the backbone of Pakistan’s economy,” he said while addressing the representatives of about 76 Chinese companies at a road-show of Quaid-e-Azam Apparel Park (QAAP), Sheikhupura, held here. Welcoming the Chinese businessmen and entrepreneurs, he said, “Your presence here not only reflects your confidence in the market potential in Pakistan but also shows friendship with Pakistan and its people.” Giving the details of the project, he said, it is aimed at development of textile and garment sector in Pakistan, adding, textile sector is one of main segments of Pakistan’s economy and Pakistan exports bulk of its textile products to China. Masood Khalid said, the present government has launched various mega projects for the development of Pakistan, a home of more than 200 million people. Pakistan and China, partners in the China-Pakistan Economic Corridor (CPEC), are executing a large number of projects including energy, roads network, infrastructure, Gwadar port and new industrial zones along its route, he added. The Ambassador apprised audience about Punjab government’s development projects and said these development projects included provision of clean drinking water, farms to city roads and a knowledge park in Lahore. He asked the Chinese entrepreneurs to take advantage of enormous opportunities offered by the government as Pakistan particularly the Punjab province is emerging as a hub for economic activities. “It is matter of taking interest and lead to explore the market potential of Pakistan,” he said. About investment and working climate in Pakistan, he informed that more than 90,000 Chinese national are already working on different development projects in Pakistan, adding, the government has taken special measures for their safety and security. While drawing the attention of Chinese companies toward the project, he said, the QAAP being established near Lahore is a big project which requires their attention. “We are looking for good contractors for executing this project aimed at making it a good quality project besides its implementation at par international standard,” he added. He said, Pakistan’s government has offered special incentives for the investors including the Chinese friends and added, Pakistan has strategic location and is linked with two big neighbors – China and India while it provides easy access to Central Asia and Africa. He said, cheap raw material along with hardworking work force and managerial teams are available besides profit margins are very good in Pakistan. “We are working to modernize the development process and all the industries have been integrated,” he added. The Ambassador said, all the important world financial institutions have expressed satisfaction over the performance of Pakistan economy and they termed it as strong and stable. Project Director, Shahzad Sheikh who arrived here from Pakistan to organize the road-show, said, the objective of the road-show is to invite the international contractors to participate in the infrastructure development of QAAP project. He said, ideally located on Lahore-Islamabad Motorway at the junction of Sheikhupura, QAAP is connected through a dedicated interchange on M2, with a network of national highways to create an uninterrupted link to all major cities, sea ports and dry ports of the country. A comfortable distance of 40 KM from Lahore, 55 KM from International airport and just 6 KM from Railways station bring the project site more close to the international market, he added. He said, the Apparel Park will have the capacity to create 250,000 new jobs along with setting up a precedent of empowering skilled women work force. He said the garments produced by QAAP will be exported to Europe and Latin America at a huge scale, crowding in Rs 5 billion in country’s annual GDP. At the end, a questions-answers session was held. The Chinese businessmen and representatives asked several question from the project director and showed keen interest in the different aspect of the project.
Source: Samaa TV
Several textile and apparel industries among African nations are on the rise, attracting more attention from the global market. These sectors are mainly boosted by increased exports, investments and government support. Details about these industrial facilitators in Lesotho, Ethiopia and Nigeria are some of this week’s featured stories on BizVibe. BizVibe is the world’s smartest B2B marketplace and allows users to connect with over seven million companies around the globe.
Increasing exports to the US boosting Lesotho’s textile industry
Lesotho is now one of Africa’s biggest textile and apparel manufacturers and the largest sub-Saharan African exporter of apparel products to the US. Its annual textile and apparel exports to the US increased from about USD 129 million in 2001 to USD 330 million in 2015. The significant development of Lesotho’s textile and apparel industry has been mainly driven by a preferential trade deal with the US – The African Growth and Opportunity Act (AGOA). Now, over 80% of Lesotho-made textile and apparel production exports to the US every year, and many US brands, such as Gap, Levi Strauss, Foot Locker, Timberland and Wal-Mart, are sourcing or manufacturing in Lesotho.
Ethiopia’s textile sector attracts new investments
Several large Chinese companies have decided to invest in Ethiopia’s textile and apparel industry this year, among them is Jiangsu Sunshine Group who plan to invest nearly USD 1 billion in Ethiopia. Ethiopia is becoming an attractive destination, especially considering that its new initiatives are so favourable to textile companies. Indian investors have also shown a strong interest in the African nation. The Ethiopian Investment Commission (EIC) has increased its efforts to attract foreign direct investment, and hopes to secure total USD 3.5 billion investment by the end of this fiscal year.
Government shows strong support to Nigeria’s textile and apparel industry
The Government of Nigeria has recently announced that it will allocate 51 billion Nigerian Naira (USD 161 million) in this year’s federal budget to the development and resuscitation of the Nigeria’s struggling textile and apparel industry. The government hopes this allocation will create more textile jobs, promote the production and purchases of locally-made textiles and clothing, improve infrastructure, increase domestic cotton production and develop technologies in the Nigeria’s textile and apparel industry. BizVibe is home to 50,000+ apparel and textile companies across 200+ countries, covering all sectors. The BizVibe platform allows you to discover the highest quality leads and make meaningful connections in real time. Claim your company profile for free and let the business come to you.
About BizVibe
BizVibe is home to over seven million company profiles across 700+ industries. The single minded focus of BizVibe’s platform is to make networking easier. Over the years, we've searched far and wide to figure out how businesses connect and enable trade. That first interaction is usually fraught with the uncertainty of finding a potential partner vs. a potential nightmare. With this in mind, we've designed a robust set of tools to help companies generate leads, shortlist prospects, network with businesses from around the world and trade seamlessly.
Source: Yahoo Finance
The fourth edition of Expo Producción — co-organized by Atlanta-based Exposition Development Co. and Mexico-based E.J. Krause Mexico — will take place at the World Trade Center in Mexico City, March 29-31, 2017. The show serves the complete supply chain in Mexico and Central America working in apparel, home and technical textiles’ production. Organizers promote the show as a professional platform for manufacturers, brands, retailers and suppliers to connect, network and learn about the newest trends, products and innovations impacting the textile industry. Exhibitors will offer products and services from the fashion, home and technical textiles industries including: computer software and information technology; full package and private label contract manufacturing; cutting and sewing equipment; distributor and wholesaler; fabrics; fibers and yarns; findings and trims; nonwovens; research and development; services and logistics; supplies; textile machinery; and associations, academia and publications. Job titles for attendees cover the gamut and include designers, engineers, educators, plant managers, purchasing managers, quality control managers, and research and development personnel. The visitors come from all facets of the textile industries including aerospace, automotive/ transportation interiors, garment manufacturing, government manufacturing, home textiles, leather and footwear, military and pet products. New for 2017 is a Chinese Pavilion highlighting exhibitors from China. “This year, ExpoProduccion is hosting its first Chinese Pavilion, and an additional 10 Chinese companies that came in separately,” said Lorie Gross, show director for Exposition Development Co. “We are very excited about this addition to the show. We are also seeing a record number of attendee registrations and a greater presence from manufacturers here in Mexico that are involved in the automotive and aerospace industries. We feel this change is directly related to the growing market needs in this region, as well as our partnership with E. J. Krause Mexico that has a direct reach into those market segments.” Organizers developed a comprehensive series of seminars that will run during the three-day show. The seminars start at noon each day (See Table 1). The exhibition show floor will be open from 2 p.m. until 7 p.m. each day. “Overall, we expect a broader range of exhibitors representing the complete supply chain, and more in-depth educational programs along with new elements introduced to the show floor that will enhance both the exhibitor and attendee experience,” said Gross. “ExpoProduccion is a must for companies currently doing business in Mexico and Central America, as well as those who would like to expand their business into the region.” Attendance is free of charge to qualified industry visitors. Preregister to save time during the event or register on site.
Source: Textile World
Expo HightexCanada-based technical textiles trade show celebrates its 15th year in 2017. Expo Hightex, a technical textiles trade show hosted in Montreal, is celebrating its 15th year in 2017. The show, organized by Saint-Hyacinthe, Québec-based CTT Group — a technology transfer center specializing in the research, development and testing of technical textiles, advanced textile-based materials and geosynthetics — and the Québec technical textiles industry, will be held April 4-5, 2017, at the Place Bonaventure, Montreal. The organizing committee is comprised of the following people: Jacek Mlynarek, CTT Group; Estelle Vazquez, CTT Group; Danielle Jutras, CSMO Textile; Elif Belgen, Regitex Inc.; Francois Pépin, Soleno Textiles Techniques Inc.; Jean-Sébastian Brière, Textiles Monterey 1996 Inc.; Joannie Guy-Laberge, MESI; Jocelyn Lamarre, Accord Centre-du-Québec; Joel Renaud, Davey Textile Solutions Inc.; Myriam Simard, Texel; Sae Chang, Hando Corp.; and Randy Williams, Doubletex. Expo Hightex’s theme for 2017 is climate change. According to organizers, the event will “explore the impact of new textile technologies on the climate and how our various sectors of activity can create cutting-edge solutions to help in the fight against the greatest challenge facing the world today.”
Expanded Reach
The show traditionally has been open only to Canadian companies, but to mark its 15th anniversary, organizers are inviting for the first time exhibitors from all over the American continent. In addition, interested exhibitors that are unable to have a physical presence at the show will be offered the chance to participate virtually. Companies may upload information, images, documents and videos to a specially created online space. A dedicated area at the show will display this information to interested visitors. The online space also offers a chat function so visitors may ask the virtual exhibitors live questions during the event. The show floor is open from 9:00 a.m. to 6:00 p.m. on April 4, and from 9:00 a.m. until 3 p.m. on April 5. Conferences On Tuesday, April 4, the conference kicks off at 9:00 a.m. with a World Tour speech from explorer Bernard Voyer. At 11:00 a.m., a session on Climate-proof Technical Clothing is scheduled, followed by a panel discussion on International Economic Development and Trade. A gala will be held at 6:00 p.m. in the exhibition hall following the conference events. At 9:00 a.m. on Wednesday, April 5, Neal Waters, president of the North American Uniform Manufacturers and Distributors, will present a session titled, “U.S./Worldwide Uniform Market and Its Opportunities.” The 11:00 a.m. session is titled, “Aerospace Business Opportunities,” which will be followed at 2:00 p.m. by a session called, “How to Get Into Worldwide Markets?” Expo Hightex 2017 attendees are asked to register via Eventbrite. A link can be found at the show’s website.
Source: Textile World
The rapid growth in digitally-printed banners and hoardings demands a new standard in pure white, 100% clean and fault-free textile substrates. In response to this demand, a new company, GtA (Gesellschaft für textile Ausrüstung) has been formed and has erected a purpose-built plant on a greenfield site in Neresheim, Germany. The plant has been equipped with a fully-automated 72-metre-long installation comprising a washing machine integrated with a 3.6 metre wide MonfortsMontex 6500 stenter. The seven-chamber Montex stenter, purpose-built at Monforts Austrian production facility, is equipped with a horizontal chain, a padder and an integrated weft straightener. “I have worked with other stenter manufacturers in the past, but we opted for Monforts technology and the company’s excellent service we have received,” said Managing Director Andreas Niess. Georg and Otto Friedrich With two production plants in Germany and headquartered at Gross-Zimmern, close to Frankfurt, Georg and Otto Friedrich has a monthly production of more than 450 tonnes of warp knits – the equivalent of around six million metres – for a range of end-use applications, including garments, automotive interiors and technical textiles, in addition to digital printing substrates. It is for digital printing, however, in addition to certain interior fabrics, which are washed and treated at the Neresheim plant, that GtA has been established. GtA is being run by a seasoned team of textile professionals led by Managing Director Andreas Niess, with the backing of Georg and Otto Friedrich – one of the largest manufacturers of warp knitted textiles in Europe. Production GtA started production in February 2016 and for the first five months ran a single eight-hour shift. In July last year this was increased to two eight-hour shifts daily and since January this year, the company has been operating a three-shift system 24 hours a day. One of the biggest projects the company has been involved with Georg and Otto Friedrich to date was the supply of around 14,000 metres of digitally-printed materials for the flags and banners of the Olympic Games in Rio Janeiro. The entire finishing line is controlled by an EVA quality inspection and control system, which analyses every square metre of fabric to ensure uniform and blemish-free production. Quality finishing The substrates of choice for digital printing are 100% polyester warp knits, which have extremely smooth surfaces. This is becoming increasingly critical due to the general move away from PVC coatings. In addition, they are resilient and allow excellent take-up of inks, and vibrant colours and clear and precise images to be achieved with digital printing techniques. The knitted construction also has the advantage of elasticity, which is a plus in terms of flexibility for installers. The raw fabrics to be finished are supplied by Georg and Otto Friedrich to GtA in weights of 50-350 gsm in rolls of up to 600 kg or 1800 metres. Depending on the fabric weight, GtA is running the stenter at speeds of between 20-50 metres an hour at an average temperature of 200ºC. Also fully automatic, are the roll inspection tables after the winder and a robotised cutting and packaging system, which converts the master rolls down to 75,100, 200 or Monforts air-to-air heat recovery system Another distinctive feature of the line is the proprietary addition to the Monforts air-to-air heat recovery system, which is now standard with Montex stenters. The GtA line is also configured for air-to-water heating to save considerable energy in washing operations. The complete demand for hot water is generated by the heat exchanger which also ensures surplus water for heating the building and the roof. In addition, GtA has purpose-designed the automatic chemical mixing and dosing system that feeds to the padder for the seven key treatments that are carried out on the fabrics through the stenter. 300 metre packages to be despatched back to Georg and Otto Friedrich and its many distributors and partners ready to be printed.
Source: innovations in Textiles
THE age-old plan to revive the country’s ailing textile industry may soon be back on track with a lifeline of N51 billion earmarked for it by the Federal Government. We welcome the development, provided the fund will not go the way of previous intervention funds that promised much but achieved little. Two years ago, a report by the Ministry of Industry, Trade and Investment showed that over 145 Cotton, Textile and Garment (CTG) mills across the country collapsed in the last few years. But, the minister of state in the ministry, Aisha Abubakar, says government voted N51 billion in the 2017 budget to kick-start the revival of the ailing textile mills. She assured that the amount is part of a string of deliberate measures by the present administration to diversify the economy, create jobs and increase the patronage of made-in-Nigeria apparels. Speaking at a recent workshop organised by the Bank of Industry (BoI) in Abuja, the minister confirmed that between 1980 and 2016, no fewer than 145 textile industries shut down due to harsh economic conditions. The sub-sector, she pointed out, used to be the second largest revenue earner for the country. In the golden era of the textile industry between 1985 and 1991, the annual growth of the sector was 67 percent. It provided over 350,000 jobs. Statistics also show that the industry once provided 25 percent of Nigeria’s Gross Domestic Product (GDP) and 20 percent of corporate taxation revenue. Not any longer. Today, there are less than 30 functional cotton, textile and garment mills in the country. Meanwhile, the current annual global output of textile firms is estimated at over $400 billion, with half of that amount from China. It is, however, important to ask how far N51bn go in reviving Nigeria’s ailing textile mills. Government has admitted that this may not be enough, but has affirmed its determination to sustain efforts geared at giving a new impetus to the sub-sector. Any serious effort in this direction must tackle the myriad problems facing the industry. These include instability in the power sector, high cost of production, competing textile imports from Asian countries and uncontrolled smuggling and dumping of substandard fabrics in the country. Over the years, very little has been done to address these problems. It is sad that in spite of the importance of the textile industry to the economic recovery of the country, especially on account of its revenue and job creation abilities, little has been done to maximize its potentials. Government has estimated that it can create three million jobs in the sub-sector. It should do whatever is necessary to achieve this. However, considering the amount of money that has been committed to the resuscitation of the industry in recent years without any appreciable results, we urge government to investigate how the N100bn Textile Intervention Fund of 2010 was spent. Alhough the immediate past administration claimed it saved 8,070 jobs and created about 5000 new ones through the disbursement of the N100bn fund, the Manufacturers Association of Nigeria (MAN) had strongly disputed that claim. On the contrary, MAN says that only 38 Cotton, Textile and Garment firms benefited from the fund, while capacity utilisation in the textile sub-sector remains abysmally low. Considering the controversies that dogged the previous funds, government must demonstrate transparency in the disbursement of this N51bn whenever it is released. Beyond the intervention funds, we believe that the textile industry needs a comprehensive policy framework that will address all the constraints hindering its progress. This has become even more crucial now that the economy needs a lift through diversification from oil. Making the fund accessible to operators at a reasonable interest rate will be a step in the right direction. It will be recalled that in 2015, the Central Bank of Nigeria (CBN) raised a glimmer of hope for textile industry operators when it floated a N300bn Real Sector Support Facility with nine percent interest rate. But, potential borrowers considered the rate too high. We call for a downward review of this rate. Overall, while adequate funding is necessary to revive this sub-sector, it must come with the provision of requisite infrastructure. There should be stable power supply, modern equipment, good road network, scaling up of the fight against smuggling, foreign exchange supply and increased patronage of made-in-Nigeria fabrics. In fact, there must be sincerity of purpose in the release of funds for the revival of the textile manufacturing industry so that the objectives of diversifying the economy, getting the industries back on their feet and creating jobs can be achieved.
Source: Nigeria Today
