The Synthetic & Rayon Textiles Export Promotion Council

MARKET WATCH 28 FEB, 2017

NATIONAL

INTERNATIONAL

India sticks to plan on creating regional manufacturing hubs in CLMV nations

New Delhi: Even after the new US administration under President Donald Trump has abandoned the proposed Trans-Pacific Partnership (TPP) agreement, India is willing to pursue its original plan to create manufacturing hubs in the CLMV countries (Cambodia, Laos, Myanmar, Vietnam) to create regional value chains. TPP was negotiated among 12 nations: Australia, Brunei, Chile, Canada, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, the US and Vietnam, which together account for 40% of the world’s gross domestic product (GDP). Although the deal was aimed at countering China’s influence in international trade, India feared that it could adversely affect the country through trade diversion and stringent non-tariff measures. India was seeking to safeguard its interest under a TPP regime where it may have partly lost markets to the developed countries, by creating manufacturing hubs, especially textiles, in countries like Vietnam, which was part of the TPP negotiations. India’s cabinet had cleared a Rs500 crore project development fund in August 2016 for exploring such opportunities in CLMV countries and facilitating private companies to establish presence in these four countries. One critical reason was the availability of Generalized Scheme of Preferences (GSP) to the CLMV countries through which they have less or no duty on their exports to developed countries. India still enjoys GSP benefits in certain sectors but the US and European Union has been threatening to end India’s GSP benefits, given its rising share in world exports. “GSP is one very big attraction to CLMV countries. If Indian manufacturers go to CLMV countries and produce, they will be able to utilize the GSP benefits to get market access in the developed countries,” India’s commerce minister Nirmala Sitharaman told reporters at the Fourth India-CLMV business conclave organized by the Confederation of Indian Industry (CII). The business conclave was attended by the trade ministers from Cambodia, Myanmar and Vietnam. A commerce ministry official speaking under condition of anonymity said TPP would have been an additionality, but since these countries have GSP benefits because of their least developed country status, India’s approach to CLMV is unlikely to change. “Our target was to leverage both TPP as well as their GSP access. So, even without TPP, our strategy does not change. Exim Bank has identified sectors such as textiles, leather and healthcare where project identification work will start soon,” he added. India’s exports to CLMV countries increased by more than eightfold to $6.4 billion in 2015 from $800 million in 2005, accounting for 24.3% share in India’s exports to Asean (Association of Southeast Asian Nations) region. India’s imports from CLMV, on the other hand, increased by nearly sixfold from $600 million in 2005 to $3.9 billion in 2015, accounting for 9.4% share in India’s imports from the Asean region. Ever since Vietnam started negotiating the TPP, many foreign investors had announced they would increase their investments into the country’s garment and textile industry to enjoy duty-free exports to the US market and other TPP member states. “Indian textile manufacturers (should) take the opportunity to enter the Vietnamese market catering to the entire textile value chain,” an Exim Bank report in April 2015 had said. The project development firm (PDF), which will facilitate private investments in CLMV countries, is housed in the Department of Commerce, and will be operated through Exim Bank. It will be governed by an inter-ministerial panel under the chairmanship of the commerce secretary. The PDF will be used to identify projects which support regional value chain (RVC) and help integrate Indian firms into the RVC. The projects identified under the initiative, if found feasible, will be incorporated through special purpose vehicles in CLMV countries. The reporter was in Jaipur to attend the Fourth India-CLMV business conclave on the invitation of CII.

Source:  Livemint

Back to top

India is among the most open economies, says Jaitley

India is one of the most “open economies in the world,” Finance Minister Arun Jaitley said on Monday, as he contrasted the country’s approach to reform to an increasingly inward-looking world. “When the world is turning increasingly protectionist, India is opening up,” he told investors, politicians and business people gathered in central London, for a meeting hosted by the UK India Business Council and FICCI during a five-day trip to London. “India has the potential for a growth rate higher than what we are achieving today,” Jaitley said. He added that in the early days of liberalisation there had been dissenting voices but those “fears have receded to the background.”

Support for reform

“You have much greater support for reform than any other time in history. The idea of a protectionist economy has not been an issue for India…We’ve opened up and it’s been more welcomed than opposed.” However, he said that discussions with his counterparts in Britain have convinced him that Brexit cannot be “confused with any protectionist idea.” “There is a keenness to expand trade with India.” Jaitley has used his public appearances during the trip to focus on India’s reform agenda, outlining the long-term impact it hopes the implementation of GST, and demonetisation, will have on efforts to improve the collection of taxes, enabling the government to increase spending on infrastructure and poverty reduction.

Teething trouble

On Monday, he acknowledged there could be “teething problems” in the first days after the introduction of the Goods and Services Tax (GST), but maintained confidence in it coming into effect by July 1, and September at the very latest. “We’ll have to learn to live with it,” he said. Personnel are being trained for it, he said, and the IT network prepared. “But in any great experiment of this kind it is likely to be there...it will be a far more efficient system,” he said. “It will ensure evasion doesn’t take place. Every limb of a transaction would be captured in software and the quantum of taxes will go up — and as the taxation base increases, the state’s ability to make taxes more reasonable will be there.” Asked about the health of the banking sector, and particularly non-performing loans in the state banks, he said the current quarter is looking better and that it is best to focus on the future, rather than “panic.” The problems are confined to a particular few sectors and the Centre has taken steps to address the issue, he added. He further said that there are calls for the creation of a “bad bank” or public sector agency to address the issue. “We are looking at several options on the table.”

Source: Business Line

Back to top

Create value chains with nations getting US, EU sops: Government to companies

JAIPUR: The government is encouraging Indian manufacturers to create value chains with four South Asian countries to benefit from the sops offered by the United States and the European Union to the exporters of less developed countries.  Cambodia, Laos, Myanmar and Vietnam or the CLMV grouping gets benefits under the Generalised System of Preferences (GSP) for developing countries, under which imports are allowed at less or zero duty.  “If Indian manufacturers set up businesses in Myanmar, they will get GSP benefits to export in the EU and US,” commerce and industry minister Nirmala Sitharaman said at the Fourth India-CLMV Business Conclave organised by the Department of Commerce and Confederation of Indian Industry in Jaipur.  This is particularly important for the textile sector.  Many less developed countries import cotton yarn from India and use it as an input for textile products which they later export to the US and EU. By setting up some part of textile manufacturing outside India, domestic manufacturers will be able to get the export benefits and also create a value chain since they will import the yarn from India.  Moreover, developed countrieshave been threatening India to end preferential tariffs because of its rising share in world exports. This will provide Indian manufacturers some cushion. India’s total trade with the CLMV countries grew more than sevenfold from $1.4 billion in 2005 to $10.3 billion in 2015. India’s exports to the bloc grew from $0.8 billion in 2005 to $6.4 billion in 2015. India has a trade surplus with Vietnam and Cambodia, and a deficit with Myanmar and Laos.  An official said that with the US-led Trans Pacific Partnership agreement not working out, it might be easier for India to develop these value chains even though the threat of GSP going away remains. Vietnam is part of the TPP.  The minister said that the move will be fast-tracked with the CII opening offices in Myanmar and Vietnam.  India has been pumping investment in the CLMV countries to tap into their high growth markets, low wage labour and reserves of natural resources, and has already created a Rs 500 crore Project Development Fund to boost investments in the region. In April-December 2016, India invested $33.5 million in the four countries.  The CLMV region saw 7.1% growth on average in 2015 compared with the Association of Southeast Asian Nations’ average of 4.8%. The four countries are part of the ASEAN bloc with which India already has a free trade agreement and is negotiating a broader Regional Comprehensive Economic Partnership agreement that covers 16 countries.

Source: Economic Times

Back to top

As Trump quashes TPP, Canada pushes pact with India

 Canada is calling on India to fast-track a proposed bilateral free trade agreement (FTA). This is part of Canada’s attempts to strengthen ties with Asia following the decision of US President Donald Trump to pull out of the ambitious Trans Pacific Partnership (TPP), of which the country was a part. Canadian International Trade Minister François-Philippe Champagne is scheduled to meet his Indian counterpart Nirmala Sitharaman on Friday to take forward negotiations on the FTA, called the Comprehensive Economic Partnership Agreement (CEPA). New Delhi, however, remains apprehensive of Ottawa’s call for changes in some of the provisions of the model Bilateral Investment Treaty (BIT) to make it more favourable for investors. Although the BIT is separate from CEPA, Canada has been insisting on linking the two so that they get simultaneously signed. “No doubt Canada is interested in pushing the CEPA with India after the Trump government withdrew from the TPP. But what remains to be seen is whether Canada changes its stance towards the model BIT,” a government official told BusinessLine. While discussing the fallouts of the failure of the TPP, Champagne had earlier told the Canadian media that the country wants to send out the message that it is open to trade, “obviously with China, with India, with Japan.”

Source of investment

“India is very much interested in a CEPA with Canada as the country could be a big source of investments for us once the pact gets signed. But we don’t know to what extent the provisions of the model BIT could be changed,” the government official said. Canada’s biggest problem with the model BIT, which has been framed by the Finance Ministry to protect India against international arbitration, is the investor-state dispute settlement (ISDS) mechanism. The ISDS lays down that foreign companies can seek international arbitration only when all domestic legal options have been exhausted. “In our previous interactions with Canadian officials, apprehensions have been expressed about the long time that Indian courts take in clearing cases,” the official said. The Commerce Ministry has discussed with the Department of External Affairs the possibility of tweaking some of the provisions of the model BIT, but the latter has argued that it is not possible to make country-specific changes.

Huge potential

“This is a very tricky situation for us as it is important for us to sign trade and investment pacts with other countries. At the same time, out trade partners’ apprehensions related to the model BIT also have to be dealt with,” the official said. Over $12 billion of investments have poured in from Canadian companies in the past two years alone. “Canada holds huge potential for us as the country’s outward investments crossed $750 billion in 2015,” the official said. The EU, too, is putting pressure on India to have a re-look at its model BIT. The 27-member bloc has sought an extension of at least six months for the individual BITs that India has with EU countries which will all expire on March 31.

Source: Business Line

Back to top

CBEC looks to restructure itself

Amid staff concerns over redundancy in the post-goods and services tax (GST) regime from the coming financial year, the Central Board of Excise and Customs (CBEC) is identifying new areas of work in international customs, risk assessment, post-clearance audits and taxpayer services, among others, to remain relevant. With limited administrative role under GST, the indirect tax department is aiming to redeploy. “There are a lot of areas where maturity of administration needs to go up. We are not able to perform in those due to lack of workforce and resources. GST is one opportunity — it will free-up manpower to concentrate on important areas like data analysis, intellectual property, risk assessment, etc,” said a senior official. There will be new Customs divisions. One on dispute resolution, capacity building and compliance is being deliberated. CBEC administers service tax, Customs duty and excise duty. GST, expected to be rolled out from July 1, will subsume service tax and excise duty, to be jointly administered with states. CBEC officers had protested to the finance minister on this division of powers. By the Centre-states agreement, the latter will monitor 90 per cent of the taxpayer base, whose annual revenue is up to ~1.5 crore each. The other 10 per cent will be with the Centre. Officers had protested that many of them would have little work. Finance Minister Arun Jaitley had assured that the new regime would generate adequate opportunities. “I see no reason for disquiet. Opportunities available in the service are protected, except that the nature of activities will change. The extent of revenue to be collected will expand (under GST). Economic activity will expand,” he'd told CBEC officials. The Indian Revenue Service (Customs and Central Excise) Officers’ Association had even sought Prime Minister Narendra Modi’s intervention to reverse the decisions taken by the GST Council. CBEC is also working on setting up a National Targeting Centre to intercept consignments and do risk profiling. It would identify, develop, update and maintain risk parameters in relation to trade, commodities, services and all stakeholders in the domestic supply chain, among other things. There could also be a wing to work on data analysis, mutual recognition and free trade agreements with other countries. Post clearance audit is another area to be strengthened. "There is a lot of emphasis on improving facilitation levels without inspection and examination. So, there must be simultaneous strengthening of postclearance audit. If you are opening doors, we should also focus on revenue and security," said another official. Last year, CBEC had launched a 'single window interface for facilitating trade, to speed clearance for consignments and improve the ‘ease of doing business.’ The idea was that importers should not need to run around to get approvals from multiple government agencies for consignments. The GST Council, chaired by Jaitley and with a minister of state (finance) and state finance ministers as members, will meet over the weekend to discuss the proposed GST laws.

Source: Business Standard

Back to top

Khadi spinners' wages hiked by 75%

AHMEDABAD : In a bid to make Khadi spinning a remunerative employment, the Khadi& Village Industries Commission (KVIC) on Monday revised the wages for the spinners upward to Rs. 7 per hank (coiled form of Khadi yarn) - about 75 per cent hike over Rs. 4 paid before November 2016. At its 642nd meet, the KVIC management resolved to ensure minimum Rs. 200 per day of wages for the Khadi spinners. "At our historic meeting at Sabarmati Ashram, we decided to increase the existing wages for spinners to Rs. 7 per hank, and our effort is to provide the daily wage of Rs. 200 to the millions of Khadi artisans to make it a remunerative employment alternate." Vinai Kumar Saxena, Chairman, KVIC told BusinessLine. He noted that the wages for spinners remained significantly low at Rs. 4 per hank till November 2016. "First, we revised it from Rs. 4 per hank to Rs. 5.50 per hank in November 2016. With the inflation hovering at around 5 per cent and the drought conditions persisting in several parts of rural India, the low wages in effect have reduced the opportunities of self reliance to Khadi artisans. So, now we have enhanced it to Rs. 7 per hank with effect from April 1, 2017," said Saxena adding that it will also be enforced and implemented in an effective manner. The Khadi institutions, which fail to comply with the revised wage rates, will face strict action from the Commission such as withholding of Market Development Assistance (MDA) to such institutions. In line with the Centre's mission to reduce cash transactions, KVIC has started paying the wages to its beneficiaries through direct benefit transfer (DBT) to their bank accounts. At its meeting in Ahmedabad, KVIC also decided to incentivise the revival of closed/dead Khadi Institutions, which had resulted into loss of production as well as loss of employment to rural communities from Khadi activities. The commission looks to increase its annual production turnover from the current Rs. 1065 crore to Rs.5000 crore in two years. KVIC looks to achieve the target partly by reviving the closed Khadi institutions. "To achieve the objective, KVIC formulated a programme called Khadi FOCUS, which is now under consideration at the Ministry. One of the ways of increasing production in the country is by reviving Khadi institutions by inculcating a competitive spirit among the State Directorates of Khadi and incentivising their good efforts," the chairman stated. There are about 700 dead Khadi institutions across the country, while 2323 are in the working condition. Further, Saxena mentioned that KVIC will also provide a selling platform to products made in the prisons as an encouragement to prison inmates to develop life supporting skills while serving their terms in prison. "It is observed that these prison-made products attained high quality, as witnessed in the jails of Gurugaon and Tihar, where rehabilitation efforts are in progress. As an extension of these ongoing efforts, such prison made products will be provided a sale platform in KVIC's Khadi outlets," the KVIC management decided.

Source: Business Line

Back to top

Salona Cotspin set to venture into garment business; tumbles 3.75%

Salona Cotspin Limited has announced that it will be entering into the garment business within the textile sector, apart from its existing spinning business. Salona Cotspin Limited The stock is trading at Rs 60.30 per share, and is down by Rs 2.35 per share or 3.75%. has announced that it will be entering into the garment business within the textile sector, apart from its existing spinning business. Currently Salona Cotspin operates spinning units in Tirupur and Tamil Nadu. Its products include cotton combed hosiery yarn and compact yarn. It deals in direct and merchant sales for Export of Yarn & Fabrics to Sri Lanka, Bangladesh, Hong Kong, South Korea, Germany, Mexico, South America and Russia.

Source: India Infoline

Back to top

Weaving Success: Adil Mir’s make in Kashmir dream

A hardcore industrialist, Mir uses modern technology, high-grade raw material to manufacture quality products and that has become his success mantra. At the 40-years of age, this man has an extra ordinary achievement in the business scene of Kashmir. A first generation entrepreneur, Adil Mir with an initial investment of Rs 50,000 in 1997 has come to a stage where his company turn over has reached about Rs10 crore annually. And that too by doing something, which is not a Kashmir advantage at all. Manufacturing garments. Mir, by venturing into textile manufacturing, has not only created a successful business supplying internationally as well as within India but has created a famous Kashmir brand, Pureweave. A hardcore industrialist, Mir uses modern technology, high-grade raw material to manufacture quality products and that has become his success mantra. Venturing into textile manufacturing was not what Mir has thought of doing. Mesmerised by computers like his other classmates in 90s’ Kashmir, Mir after his 10+2 decided to go for computer engineering in Bangalore. It was against wishes of his father, who wanted him to do textile engineering. After completing his MCA from Banglore, he returned back to Kashmir in 1997 and started a computer business. This was a time, when his father, who retired from JK Industries Ltd, started raw material business, dealing with import of cashmere etc. However, to find a way to go outside for sometime, Mir started to deal with pashmina shawls. He started exporting to the United Kingdom and some other places. During a visit to UK regarding his shawl business he got to know about a textile course there and that became a turning point for him. He took the course and many others – regarding textile design, weaving and related fields – followed. Armed with relevant textile manufacturing skills, in 2002-03 Mir started to manufacture scarves and shawls mostly with cashmere. He was going outside in different countries, participating in exhibitions, fashion shows, etc to sell his products. The export business of these products did well. Encouraged with the success, he decided to go into manufacturing in a big way. Initially he decided to setup the Pureweave’s manufacturing unit in Noida. “It was commercially more viable and then the prospects was better with secure environment there. But then I thought, I also owe something to my homeland; I need to do it there. Besides, I am always more comfortable and feel safer in Kashmir despite the uncertainties we face here,” says Mir. Therefore in 2007 end, Mir finally decided to launch Pureweave from Kashmir and took land at Rangreth Industrial Area for the manufacturing unit. He registered Pureweave Fashions as a private limited company on professional lines. However due to 2008 and 2010 uprising, the setup could be completed only in 2012. “At that time our focus was on exports, our manufacturing line was all about western garments. We started with gowns, kaftans, palazzos, scarves etc. It was difficult for us that time to come into Indian garments. To come into Indian garments, we had to understand the patterns, colour combinations, cultures etc and lot more, so it took us some time to understand that. But we somehow now mix the western with the Indian, something which has good demand in domestic market. Here too we need to keep a distinction between a Kashmir customer and Delhi one, who have different preferences,” says Mir. Pureweave’s whole manufacturing line is about women’s garments. “We are into women only clothing. Women’s market is huge, so need to completely focus on it. The kind of material we deal into and the setup we have created is with the focus on women’s apparels. It is a well thought decision,” he adds. The fabric used by Pureweave is very refined and high-end. German dyes, digital printing and yarn, which is very sophisticated to produce high quality products, in softness, strength durability, look and design is used only. The factory, which Mir has setup, does everything from weaving fabric, dying, designing to stitching in house. Therefore keeping total control on the quality. Except for the initial processing of a fibre, which is cleaning and spinning of yarn, all the manufacturing process is carried in the Pureweave’s industrial unit at Rangreth. Mir stresses that Pureweave is not a handicrafts units. “We are not into handicrafts, what Kashmiris usually do and other textile manufactures do here. We are completely a garment industry. We make the fabric for garments and that is something different. The difference between the handicrafts and our manufacturing is that it has a different yarn. Ours has a different raw material made by machines.. It should have a more strength and capability of taking the stitching. So the manufacture is completely different that for the shawls and stools or handicrafts in the regular textile factories based in Srinagar,” says Mir. All the garment fabric is produced from different materials like cashmere, cotton, modal, bamboo, woollen, fine woollen, Marino wool and many more basic fibres and blends. The raw material, particularly cashmere, used at Pureweave is imported or procured in south India then spun into yarn in factories in Calcutta or southern states of India. When asked why is the cashmere, being imported from Mangolia and other countries instead of using the local pashmina, Mir says it is done purposely. “The pashmina production, is not that much here and if we start procuring that for our factory where will the local artisans go, who use it for shawls and other products,” says Mir. He strictly follows the norm that all his products made, which are machine made, should be labelled as cashmere and not Pashmina. He says pashmina should be kept for labelling handicrafts only so that the distinction is clear. While the exports became a big success and Pureweave supplied to some of the leading brands of the world, Mir turned towards domestic market in 2014. First he started online and then at the end of the year opened first retail outlet in Srinagar’s posh Rajbagh area at Comrade Inn. “We not only got very good response but it became much more easier for us and the cash flow enhanced. We sold lot of garment online throughout India. Same way Pureweave became very popular within Srinagar and everybody liked our products. And everybody was very keen to know about us’” he says. “We manufacture these fabrics, right from the fibre to finish in our factory based in Srinagar. Whatever expertise was there, we concentrated on making our process the best available. And with quality production, our sales went up, which encouraged me to go for the first outlet outside Kashmir in New Delhi at Greater Kailash in beginning of 2016 followed by another at Venice Mall, Greater Noida and now many more are in pipeline,’ says Mir. Mir says he has shifted his complete focus from the exports towards domestic market, with 80 percent of his about Rs 10 crore sales in 2016 coming from Indian market both through online and retail outlets.  “When I started with exports the yearly turnover was about Rs 50 lakh to Rs 60 lakh and then it went to Rs 3 crore, Rs 5 crore and now it has crossed Rs 8 crore and hope to touch Rs 10 crore this year,” says Mir, adding, Pureweave has doubled its growth in last 5 years. “I don’t like to do things up and down, I pay VAT and other taxes as per norms and you won’t see misappropriation for a single paisa, therefore, I don’t need to hide my turnover or other business figures.” Presently there are about 100 employees working with Pureweave with more than 70 at its factory in Rangreth. The factory keeps churning products 24 hours a day in many shifts. About the expansion plans, Mir says: “Presently we have 40 tailoring machines for our three outlets and in next one year we require at least 200 tailoring machines, which means at least 200 people. We are also planning expansion of our factory to enhance the production. We are installing some big machines. That was basically last year plan, but, you know, the situation. Now it is going to happen soon here. So the immediate target is 10 -15 showrooms in next 2 years across India. One showroom at Gurgoan is under process, and Banglore, Chennai, Mumbai we are at planning stage.” Mir says his next plan is to setup working clusters in different far-flung areas of Kashmir, where he can skill people and provide them employment as tailors and other workers, who can work for him at their own places. He says his expansion plan, targeted for next two years demands him about 500 workers and he aims to employ all of them locally. “My goal is to make the Pureweave pride of Jammu Kashmir, whether I will be running it in future or not but it should be a Kashmiri brand, which is known everywhere. Despite challenges, I have to make it a success here only. With many uncertainties and difficulties at this places I decided to start it here. I need to contribute little bit to this place as well, in terms of employment etc. No matter what happens in Kashmir, what is the situation, I am not scared here. I have never seen people coming for money or threatening of ransom in Kashmir streets,” Mir

Source: Great Kashmir

Back to top

Wages hiked for khadi spinners

In a bid to make khadi spinning a remunerative employment, the Khadi and Village Industries Commission (KVIC) on Monday hiked the wages for spinners to ₹7 per hank (coiled form of khadi yarn), about 75 per cent hike from the ₹4 paid before November 2016. At its 642nd meet, the KVIC management resolved to ensure a minimum of ₹200 daily wage for the khadi spinners. “At our meeting at Sabarmati Ashram, we decided to increase the existing wages for spinners to ₹7 per hank, and our effort is to provide a daily wage of ₹200 to the millions of khadi artisans to make it a remunerative employment alternative.” Vinai Kumar Saxena, Chairman, KVIC told BusinessLine. He noted that the wages for spinners remained significantly low at ₹4 per hank till November 2016. “First, we revised it to ₹5.50 per hank in November 2016. With the inflation hovering around 5 per cent and the drought conditions persisting in several parts of rural India, the low wages in effect have reduced the opportunities of self reliance for Khadi artisans. So, now we have enhanced it to ₹7 per hank with effect from April 1, 2017,” said Saxena, adding that it will also be enforced and implemented in an effective manner. Khadi institutions that fail to comply with the revised wage rates will face strict actions, such as withholding of Market Development Assistance. In line with the Centre’s mission to reduce cash transactions, KVIC has started paying the wages to its beneficiaries through direct benefit transfer to their bank accounts. At its meeting in Ahmedabad, the KVIC also decided to incentivise the revival of closed/dead Khadi institutions, which had resulted in loss of production and loss of employment to rural communities. The commission looks to increase its annual production turnover from the current ₹1,065 crore to ₹5,000 crore in two years. The KVIC looks to achieve the target partly by reviving the closed khadi institutions. “To achieve the objective, the KVIC has formulated a programme called Khadi FOCUS, which is now under the consideration of the Ministry. One of the ways of increasing production in the country is by reviving Khadi institutions by inculcating a competitive spirit among the State Directorates of Khadi and incentivising their good efforts,” the Chairman said. Saxena said the KVIC will also provide a selling platform to products made in prisons.

Source: Business Line

Back to top

Global price of fibres and yarns

Polyester Staple Fibre ( PSF )

Market

27/02/2017

28/02/2017

% Change

FOB Shanghai ($/ton)

1,140

1,140

0.0%

China (RMB/ton)

8,650

8,600

-0.6%

Polyester Filament Yarn ( RMB/ton )

Market/ Variety

27/02/2017

28/02/2017

% Change

POY 150 D/48 F

8,825

8,825

0.0%

DTY 150 D/48 F

10,550

10,550

0.0%

FDY 68 D/24 F

9,100

9,100

0.0%

Polyester Filament Yarn ( US$/ton )

Market/ Variety

27/02/2017

28/02/2017

% Change

POY 150 D/48 F

1,187

1,188

0.1%

DTY 150 D/48 F

1,443

1,444

0.1%

FDY 68 D/24 F

1,239

1,239

0.0%

Acrylic Staple Fibre

Market

27/02/2017

28/02/2017

% Change

China (RMB/ton)

14,725

14,725

0.0%

Acrylic Tops

Market

27/02/2017

28/02/2017

% 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.

Back to top

Global Denim Market Retains Its Style and Strength

The global denim market has always been one of the major segments in the global textile and apparel industrial, due the fact that jeans are considered as one of the most popular and essential fashion items in almost everyone’s wardrobe for several decades. Despite the decline of sales over the recent years, mainly overtaken by leisurewear and sportswear, global denim market still holds a great share in the global fashion market.   Today, the global denim and jeans market is worth about $60 billion, while the denim industry is expected to grow at a CAGR of over 6.5% during 2015 to 2020, according to the report from Technavio. When it comes to sales, the growth in the premium and luxury categories is expected to be the highest with smaller base numbers. The emerging countries in Latin Americas and Asia are expected to lead the growth in the global market.   Currently, the women’s premium denim segment is dominating the global denim jeans market with a market share of 55.41% in 2015. The men’s denim jeans market accounted for a share of 40.11% in the same year. Levi’s, DIESEL and G-Star RAW are the top 3 biggest denim companies in the world with total sales of $4.75 billion, $2.1 billion, and $0.8 billion respectively in 2015.   Among all the major textile and apparel producing countries, Mexico is one of the largest manufacturers of jeans and jeans fabric and it is also one of the largest consumers of jeans. China is taking increasing share of global denim market, although China’s denim export to the US and Europe is much more than its domestic consumption. Bangladesh is the largest denim exporter for Europe and the third largest in the US after Mexico and China. Bangladesh holds 22.88% share in EU and 11.35% in USA denim markets and denim exports have seen 11.16% growth over the last five years.   In terms of denim sales, the US and the UK are two of the top market for denim. Almost 70% of the individuals in the US own denim jeans and wear them regularly. Of these, almost all own at least one pair of jeans, and an average consumer owns seven pairs. While the UK is one of the largest clothing markets in Europe, and the consumers in the country own an average of 17 denim garments per person.   Over the next five years, the market for denim jeans in North America is expected to see slower growth in demand when compared with the previous years. The US’ denim imports during January 2016 to May 2016 were down by 5%. Mexico exported 102.11 million units of men’s denim, and there was also a slowdown in the export quantity in 2015. The lower demand is because the consumers in the region have started shifting from denim jeans, due to the price sensitivity and the increasing acceptance of sportswear as comfort wear.   On contrast, APAC is expected to be the fastest growing market for denim jeans and China is the fastest growing country in the region. The premium denim jeans market in APAC is expected to grow at a CAGR of 12.23% by 2020.   For future development, global denim market has put more environment concerns in its agenda.  Sustainable jeans are becoming more and more popular, it is not only a concept for the developed nations but are also gaining prominence in developing countries, including India and China. Indian designers have developed eco-friendly denim that are manufactured using 100% organic cotton without using bleach. Levi’s has also introduced a line of denim jeans made of post-consumer waste such as recycled plastic bottles and food trays under the Waste>Less brand for both men and women.

Source: Technavio

Back to top

Bangladesh : Call to build self-monitoring capacity for RMG sector

Bangladesh’s apparel industry has to move on with the progress made so far in terms of safety standards to build self-monitoring capacity in course of time. Besides, it has to concentrate on higher productivity and social dialogue to resolve workers-owners dispute. Discussants comprised of researchers, trade analysts, economists, trade unionist and sector people came up with the recommendations at a launching ceremony of a research paper titled “Pains and gains of the ready-made garments sector: Post 2013” in Dhaka recently. Bangladesh University in collaboration with the State University of San Francisco brought out the paper on which The Daily Star and Bangladesh University jointly held the discussion. “The human capital and technology already exist in Bangladesh, and suppliers’ job is to tap into that local knowledge,” said the researchers. Bangladesh has to ensure higher productivity, increase of wages for workers and more profit for the manufacturers for the sustainability of apparel sector, said Debapriya Bhattacharya, distinguished fellow of the Centre for Policy Dialogue. Debapriya called for an effective social dialogue for resolving some outstanding issues in the garment sector and saving entrepreneurs. He suggested sharing the remediation cost of factories by the retailers, suppliers and other stakeholders to reduce the burden only on manufacturers.   “We want to brand ourselves as the most compliant supplier of products. Investment in social dialogue is very crucial at this moment as manufacturers are spending millions of dollars for remediation and relocation of their factories,” said Rubana Huq, managing director of Mohammadi Group. The recent labour unrest at Ashulia indicates that Bangladesh needs more engagement of stakeholders, she added. According to Fahmida Khatun, executive director of CPD, said the garment manufacturers should also increase the wages of the workers. “We are spending a lot on factory remediation and relocation to make the factory compliant, but buyers are not paying higher prices for clothing products made in Bangladesh, but they pay higher in China, India, Vietnam and Pakistan,” said Mahmud Hasan Khan, vice-president of BGMEA.

Source: Dhaka Tribune

Back to top

'Brands & buyers should help Bangladeshi factory owners'

Brands and buyers should come forward to help factory owners in Bangladesh to overhaul their units, said Prime Minister of Bangladesh, Sheikh Hasina. The government will also offer its support in this regard. She also said that apparel manufacturers should diversify their products to remain competitive in the global market and explore new markets. Short-, medium- and long-term plans should be adopted for bolstering demands for apparel and garments made in Bangladesh, said the Prime Minister at the inauguration ceremony of the Dhaka Apparel Summit held on February 25. She said that the country needs to add value to its products as its export list is heavily dependent up on RMG. The country's exports are also limited to a few countries in West Europe and North America. Hasina said that such a situation in exports is not healthy. The government will also extend its support to increase export earnings, she added. The RMG sector can help turn Bangladesh into a middle-income country. Bangladesh products are exported duty free to the European markets, but the country pays about $850 million in taxes when exporting products worth $3 billion to the US. She said that as a least developed country, Bangladesh can get duty free benefits from the US. Hasina also spoke about the safe working environment of the factories in Bangladesh and said that only 39 out of 3,869 units were closed due to poor conditions after inspections were conducted in each of them. The Prime Minister said the government will provide all the cooperation to reach the target of earning $50 billion in export by 2021. The second Dhaka Apparel Summit 2017 was held with much enthusiasm and spontaneous participation of speakers and audience from home and abroad. International experts and local speakers took part in three sessions on separate topics.

Source: Fibre2Fashion

Back to top

Ghana : Textile industry in dire straits

The Chief Executive Officer of the UT Group, Mr. Martyn Mensah, has said the textile industry, which dominated the manufacturing sector of the country some years back, has seen a 90 percent decline in its contribution to employment. He said in 1970, at its zenith, the textile sub?sector dominated the manufacturing sector in Ghana with 16 textile manufacturers which employed 25,000 people. The sad story of the textile industry, he said, is that there are only four players left, operating at different levels of activity, and they currently employ a mere 2,900 Ghanaians; a 90% decline in its contribution to employment over a period of 50 years. Even surviving companies Akosombo Textile Limited (ATL), Tex Style Ghana Limited (GTP), Printex and Ghana Textile Manufacturing Company (GTMC) are struggling in the face of competition from cheap, pirated imports. It is reckoned that in 2011, the ratio of imported textiles to exported textiles in Ghana stood at 125 percent that is the country imported 25 percent more textiles than it exported. By 2015, the excess of imported textiles over that exported stood at a staggering 827%! Speaking at the 90TH Anniversary of the Achimota School dubbed “Achimota Speaks” programme, Mr Mensah said “the only conclusion is that from where we stand today, textile manufacturing will not be making any further meaningful contribution to the nation’s development.” He said this is the sad state of affairs of a sector that had the potential to catalyze the development of a powerful supply chain linking cotton?farming to ginning, yarning and spinning and connecting to dye manufacturing and then linking forward to exporting as artisanal and commercial local clothing manufacture. “The question is whether the case of the demise of the Ghanaian textile sub-sector is what the future holds for other sectors of our economy? Will other sectors add to or subtract from our efforts to develop Ghana?” he asked. The gravity of where this sector finds itself today should not be lost on us. When we promote the wearing of made in Ghana clothing, could we unwittingly be driving the demand for imported fabric much of which is of dubious provenance? The textile industry cannot be overlooked when discussing the country’s manufacturing sector. The industry, which was once the leader in Ghana’s industrial sector, has been declining over the years largely due to trade liberalization policies and programmes. This has resulted in the proliferation of fake imported textiles into the country which is usually sold at cheap prices compared to the ones produced locally. This situation has led to about 60 percent reduction in the production capacity of the textile industry and has contributed to job losses. Without the gift of precognition, it can really be just a roll of the dice as to what state our country will be in by the year 2030. One thing is sure, the world around us is changing at such a breakneck pace that in 13 years would seem like a lifetime of change. Effects on youth unemployment Even though Ghana does not have a reliable and comprehensive unemployment data, available statistics shows that about 300,000 young people enter the labour market every year. The formal sector is only able to engage less than 6000 (3%), leaving more than 97 percent to survive in the informal sector or out rightly, unemployed. Research further indicates that Ghana’s population has a youthful structure with the youth defined officially as aged 15 –24 years, constituting about one out of every four of the population. Over the past forty years, the number of the youth in the total population of Ghana has increased from 1.1 million in 1960 to 2.3 million in 1984 and to 3.5 million in 2000. The latter constitutes about 22.6 percent of the economically active population. The above statistics creates a very worrying situation looking at the present state of the country’s manufacturing sector which is supposed to engage the majority of these youths in gainful and productive activities. This therefore depicts that; government must take practical steps to bring this problem, which has the potential of threatening the national security of the country as was experienced some time ago with the “Arab Spring” situation that caused a lot of disturbing consequences.

Source: Ghana Web

Back to top

For more Chinese firms, it pays to make it in the USA

Chinese manufacturers are setting up factories in the US, a trend set to accelerate if Trump taxes imports A hefty US import tax on goods produced in China could accelerate a trend already well under way: Chinese companies setting up factories and expanding in the US. Manufacturers in China face a host of pressures. Wages have risen substantially, while land and electricity prices are up. This challenges China’s decade-long orthodoxy of producing mass-market goods at extremely low cost. At the same time, Chinese companies that have saturated their home market are looking elsewhere for growth. “Many Chinese firms have become so dominant in their domestic market that they are now forced to look beyond the Chinese borders,” said John Ling, Georgia’s managing director for investment in China and president of the Council of American States in China. Mr Ling helps attract and facilitate expansion by Chinese companies in the state. President Donald Trump has called for a rejuvenation of US manufacturing, in an effort to boost employment. He campaigned on a promise to tax Chinese imports at roughly 45 per cent, and House Republicans are proposing a border-adjusted system that would effectively tax all imports. Since his inauguration, the president has talked of taxing imports from Mexico. AWhite House spokeswoman said the administration had no comment on taxing Chinese imports. Some firms are already well-placed should there be a rise in tariffs for Chinese goods. Keer America Corp, a subsidiary of Keer Group Co, a textile producer from Zhejiang province in China, plans to invest $68.5 million in the first phase of a $218 million, five-year project to double the capacity of its yarn-spinning facility in Indian Land, SC, said chairman Zhu Shanqing. The facility has been in operation since mid-2015. Keer now employs 208 full-time, mostly line workers in the US and plans to hire another 300. “There are obvious cost advantages,” Mr Zhu said. Electricity prices, for example, are up to 40% lower in Lancaster County than in Hangzhou, he said. Chinese companies’ direct investment in new production facilities in the US, also known as “greenfield” investments, has increased rapidly over the last five years, with companies turning to capital-intensive operations such as manufacturing, said Thilo Hanemann, an economist at Rhodium Group LLC, a company that tracks Chinese spending abroad. From 2000 to 2016, Chinese firms plowed $8.6 billion into 778 greenfield or new investments in the US, according to Rhodium Group. Last year, companies spent $1.4 billion on 34 greenfield projects, Rhodium said. That is down from the $1.8 billion spent in 2015, although Rhodium said the 2016 figure might climb once there is more clarity over the progress of large projects. Lower costs, the ability to circumvent some trade barriers and the proximity to US consumers all contributed to the rise in Chinese manufacturing investment, Mr Hanemann said. “Higher tariffs and other market-access barriers would certainly increase the rationale for Chinese manufacturers to invest in a US production base,” he said. Beijing in November tightened currency controls on Chinese companies seeking to invest overseas, but Georgia’s Mr Ling said that isn’t likely to have a significant impact on Chinese manufacturing investment in the US The measures are particularly aimed at large acquisitions and investments in overseas entities unrelated to the investor’s core business. In terms of manufacturing investment, “I see big momentum coming from China,” he said, especially given the potential threat of higher tariffs. Companies are paying “a lot of attention to” Mr Trump’s statements, Mr Ling added. “We are currently looking at whether it makes sense for us to produce in the US,” said Carolyn Wang, vice general manager at Shenghuabo Group Co in Shanghai, an auto-parts supplier that operates four plants in China and exports to other markets, including the US. “If [Mr Trump] tries to raise the bar on imported products, he might also incentivize Chinese entrepreneurs to produce locally,” Ms Wang said. She said if Shenghuabo were to open a plant in the US, it would be a highly automated facility with minimal labourers to keep costs down. For others, moving production to the US isn’t an option. Michael Crotty, president of MKT & Associates Ltd, a home-textile trading company based in Shanghai, said he would start sourcing curtains and other products from Vietnam, Pakistan or India should the US introduce a 45 per cent import tax on goods from China. Because about 90 per cent of curtains sold in the US come from China, moving production to the US isn’t feasible, Mr Crotty said. It would likely take decades to build a supply chain with the economies of scale needed to produce curtains at prices competitive with China’s, he said. However, one of the 10 China-based suppliers MKT works with is considering opening a plant in a southern US state, he said. “That plant will be highly automatised,” Mr Crotty said. Coline Cabinetry NY Inc set up shop in the US to be closer to its customers, said Andy Hu, director of the Smithtown manufacturer of kitchen cabinets that originated in Shanghai. Mr Hu currently employs about 30 people in the US and sells to retailers as well as consumers. US workers, he said, “are not cheap,” but the company saves on freight costs and other logistics expenses. He buys marble and granite from India and Spain and plywood from the US. However, other raw materials come from China. “If there is an increase in [sourcing] costs, the sale price will rise, too,” Mr Hu said.

Source:  Business Standard

Back to top

"Pakistan has become the hub of denim," Mirza Ikhtiar Baig, former advisor to PM on textile

In Pakistan, perhaps few industrialists are more accomplished than Dr. Mirza Ikhtiar Baig. A regular columnist, renowned industrialist, author, and Chairman of the Baig Group a multinational conglomerate operating in diversified fields in Pakistan, UAE, and Morocco for the last 30 years Dr. Baig is a former advisor to the PM on textile. He is one of the pioneers of the countrys first textile policy, and is a recipient of the Tamgha-e-Imtiaz in recognition of his contribution to the national economy. Dr. Baig has done his Masters in Marketing and Doctorate in Business Administration from the US. His company, Pak Denim, is the recipient of the FPCCI Special Export Merit Award for the last 15 consecutive years on export of denim fabric. He has been Chairman Pakistan Textile City and served on the Board of Directors of Pakistan State Oil & Karachi Electric Corporation. In the newly constructed Baig Tower on Shahra-e-Faisal in Karachi, BR Research met with Dr. Baig to discuss some issues in Pakistans textile industry. Below are edited transcripts of the discussion. BR Research: You were one of the pioneers of Pakistans Textile Policy (2009-2014). Tell us about it and why was it unsuccessful? Mirza Ikhtiar Baig: I worked really hard on it. I went all over Pakistan to engage all the various stakeholders and the entire textile value chain before coming up with the document. The Textile Policy (2009-14) was the first document of its kind in Pakistans history that focused solely on textile. Sadly, only 30 percent of it could be implemented. The thing is that in Pakistan, the government not just the PML-N, but successive governments are good at announcing policies and publicising them, but when it comes down to implementation they lack the will. For instance, take the Technology Upgradation Fund (TUF) a scheme that I introduced. Now you look at India, they copied my idea and their TUF is thriving, while over here it remains largely unimplemented. Its about priorities; the budgeted amount is redirected to other places. They do not give importance to the textile industry. We have a dedicated Ministry of Textile, but its sitting without a Minister for the past three years. Now we are hearing it might get merged into the Ministry of Commerce. BRR:What is your take on the PMs export package? MIB: Its an enormous amount far larger than I had expected. Of the Rs180 billion, Rs100 billion is for textiles alone. However, the rebates four percent on yarn and grey fabric, five percent on processed fabrics, six percent on made-ups, seven percent on garments are only valid until July of this year. After that, the rebates will again only be applicable on those exporters that are able to achieve 10 percent growth year-on-year. Is six months enough time to achieve this type of growth? And they were supposed to start it from January 01 but then it got pushed forward till January 17. Another major issue is that the package is not being extended to commercial exporters. The current package is only for manufacturer-cum-exporters. This excludes an important portion of our export-oriented textile industry. Finally, the process of getting the refunds is very cumbersome. There is a verification process, and the exporter must obtain the signature from an executive member of their association. In three years, the cumulative amount with the government that needs to be refunded to the exporters stands at Rs300 billion while the disbursements have been some Rs20 billion in one year, some Rs20 billion the next. The exporters are paying taxes just so the Finance Ministry can shore up its revenues. Look at the Export Development Fund, for instance. Its lying with the Finance Ministry. The Commerce Ministry has to ask for it and gets it in installments. BRR: You are the Chairman of Pak Textile City in Karachi. Tell us about this project. MIB: Its shutting down. Pak Textile City is on 12,000 acres near Port Qasim. It was supposed to be a cluster of value-added textile manufacturers. We signed a deal with K-Electric, we got electricity. However, there is no gas there. Gas is an essential part of the manufacturing process, used in boilers for producing steam. Currently, theres a ban on setting up new gas connections. How can we have a Textile City without gas? BRR: To what extent is Pakistans textile industry mechanised and up-to-date on the latest production technologies and processes? MIB: There is a misperception that Pakistans textile mills are outdated. The big textile conglomerates have the latest machinery and equipment, while the smaller firms that dont have the capital usually opt for used machinery. But by used I dont mean this machinery is 20 years old; its just around four to five years old. We have training institutes, but there is no linkage between academia and industry. Right now, we are in a situation where there is manpower yet the industry cannot find the suitable people. There need to be courses taught in universities. Moreover, there is no research in cotton. You see that in Pakistan, the annual production of cotton has declined. We dont have any high-yielding seeds. BRR: Recently, theres been a slight improvement in Pakistans readymade garment exports. Whats the reason and can this trend be expected to continue going forward? MIB: In the US, the demand has fallen. Garment and textile exports from China, Pakistan, India, Taiwan, all have seen a decline. Only one country has maintained its share and thats Vietnam. So, theres no rising trend anywhere. The reason for this is that when Trump said free market access is going to fall, buyers have pulled back orders because of fear of duty being imposed. The demand has fallen because of this. For Pakistan, regarding readymade garment exports, the EU duty free access has helped us. However, we are still underperforming here; we were expecting $2 billion annually but its not reaching that level. Another reason is denim; denim is a success story, and it makes up around 10 percent of total textile exports. Pakistan has become the hub of denim in the region. Any great brand wants to buy denim, they look for Pakistan. And our denim industry has crossed a billion dollars. This includes export of denim fabrics and denim garments Artistic Denim Mills, Azgard Nine, etc. Our company, Pak Denims fabrics are nominated by the top international brands; we are making for Zara, Gap, Diesel, Aeropostale. And we started from nothing. In denim, we are better than India. India is good in heavyweight denim, but in lightweight denim we are number one. Four-pocket jeans for $7.50-8.00 dollars are doing really well! BRR: How is Pakistan faring in yarn, and how is it capturing emerging trends such as polyester? MIB: Pakistan operates in cotton. We do have man-made fibres, but not as much. I think the ratio of cotton to man-made fibres should be 50:50, but currently the ratio is around 80 cotton-based: 20 man-made. India is taking Pakistans share in yarn, especially in China, which is our largest buyer. Indian yarn is cheaper because they have their own cotton and their yield is higher. We have to import cotton from India. With the exception of Bangladesh, I havent seen any success stories of countries that import their raw material and flourish in the global market. We have to improve our supply chain. The way to do that is to enhance cotton production, and introduce contamination-free cotton. Without a contamination-free cotton certificate, the cottons price falls by around 10-20 percent. The cotton then ends up going to low-end destinations.

Source: Business Recorder

Back to top

ECC approves winding up of Pakistan Textile City

ISLAMABAD: The Econo-mic Coordination Committee (ECC) of the Cabinet has approved winding up of Pakistan Textile City Limited (PTCL) after clearance of the companys liabilities and transfer of its land to the Port Qasim Authority (PQA). Sources said the company faced with financial hardships was considering selling its 200 acres of land to K-Electric to set up a coal-fired power plant. A summary was also moved to the ECC in this regard and, in response, the Prime Minister ordered the winding up of the company after completing the necessary requirements, including clearance of liabilities. A meeting of the ECC held with Finance Minister Ishaq Dar in the chair has recently approved Rs12 million on the request of Finance Division for the settlement of outstanding liabilities to wind up the PTCL. An unlisted public company namely PTCL, with registered office at Karachi, was established in May 2004 as part of export processing zone in Karachi, Lahore and Faisalabad. It was established following a decision of Cabinet Division in July 19, 2013 to establish special textile export processing zones. The companys establishment was aimed at providing textile sector with infrastructure to enable it to move for value addition and its expansion in size and volume to compete in the national market. With a view to implementing the project, the company obtained a certificate from Securities and Exchange Commission of Pakistan (SECP) on Jan 1, 2015 for commencing its business. The major shareholders of PTCL are the federal government (56 per cent shares) and Sindh government (16pc shares). The companys objectives were to create, implement and manage an exclusive area for value added products.  The progress of work for establishing the textile city was, unfortunately, said to be marred with a number of impediments like non-availability of electricity, gas and water and as such the textile city could not make progress on the ground. These issues remained unresolved despite approaching the relevant forum time and again. The companys accounts were also blocked by National Bank of Pakistan (NBP) due to non-payment of principal amount. A meeting of Board of Directors (BoD) was convened on Nov 17, 2016 on winding up of the company. The meeting decided that due to non-availability of financial resources and required infrastructure, including natural gas, the company was unable to continue its existence and, as decided by the committee formed earlier by the federal government, the process of voluntary winding up started as laid down in the Companies Ordinance 1984. The PTCL has intimated that the process of winding up of the company be started after the clearance/payment of outstanding liabilities, financial obligations up to Rs12m. The Finance Division was requested to approve Rs12m as equity share of the government of Pakistan. While approving the winding up of the company, sources added that the PM directed that all the assets of the company should be disposed of through an order of transfer to the PQA, which originally leased the land to the PTCL as the terms of lease do not allow its further sale or transfer to a third party.

Source: Business Recorder

Back to top

BizVibe Announces List of Common Mistakes for Sourcing Textile and Apparel Products Globally

LONDON--(BUSINESS WIRE)-- Sourcing globally has many advantages such as low cost manufacturing, accessing worldwide technologies, utilizing more efficient supply chain systems and much more. However, to enjoy the benefits of global sourcing, companies have to accept there are many risks involved and will have to face the challenges head-on. In order to help eliminate future sourcing problems for businesses, BizVibe has identified the top major mistakes made by textile and apparel companies when sourcing globally. In addition, BizVibe has launched their platform which was specifically designed to help companies from around the world trade seamlessly. Common Mistakes for Sourcing Textile and Apparel Products Globally 1) Lack of smart sourcing methods Having a clear sourcing strategy is more than just knowing which country to source from, but also how to find the right or most suitable suppliers according to your requested goods, quantity, budget, and delivery needs. Traditional methods like attending textile trade shows still work, but ignoring modern trends like sourcing through an online B2B marketplace can put your business at a disadvantage as some of your competitors are continually looking for methods to increase efficiency when looking for buyers and suppliers. BizVibe offers an advanced and quick way to find the exact textile suppliers you are looking for. The BizVibe platform uses cutting edge machine learning tools and multiple sophisticated algorithms to sort through 7+ million businesses, helping you find like-minded trade partners. 2) Not verifying the supplier before placing the order Trusting a potential supplier always comes with risk, which is why verifying the supplier to fully understand their production capacity, quality standards, and price range is vital before placing the order. Requesting a sample or even visiting your potential or shortlisted oversea suppliers’ factories is not mandatory but very important, as it will give you a clearer insight of the work conditions and the professional and technical abilities of the suppliers. Alternatively, you can search and find verified suppliers on BizVibe’s platform and receive up-to-date information for all companies of interest.  3) Not enough communication with suppliers Communication is a massive barrier to global sourcing. Even after you’ve found the supplier and placed the order, lack of communication regarding product specifications and requirements could cost you a great deal. Thankfully, BizVibe allows users to easily contact buyers and suppliers using a real-time chat feature where you talk about samples, product specifications and requirements, ongoing productions, delivery turnaround and shipping costs. BizVibe is free to register and generates high quality organic traffic for your business listing, increasing online visibility which ultimately leads to more business opportunities. About BizVibe BizVibe is home to over seven million company profiles across 700+ industries including 50,000+ apparel and textile companies across 200+ countries, covering all sectors. The 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.

Source: Yahoo Finance

Back to top

Italian textile machinery on display in Vietnam

An essential production hub for the garments manufacturing sector thanks to its low labour costs, Vietnam is currently a major industry supplier for both the European and US markets. An important contingent of Italian machinery and technology exhibitors will be presenting at the upcoming edition of Saigontex, a leading textile machinery trade fair, which opens on 12 April in Ho Chi Minh City. Among these, 12 will set up their stands in a common exhibition space organised by the Italian Trade Agency, together with ACIMIT, the Association of Italian Textile Machinery Manufacturers. Italianmachinery on display ACIMIT represents an industrial sector comprising around 300 manufacturers, employing close to 12,000 people and producing machinery for an overall value of about EUR 2.6 billion, with exports amounting to more than 86% of total sales. The 12 companies, all ACIMIT associated members, are: Brongo, Carù, Cibitex, Ferraro, JK Group, Lgl, Marzoli, Mcs, Mei, Ptmt, Roj and Texma. Vietnam’s market In light of the growing importance of Vietnam’s textile and garments industry worldwide, the need for upgrading and technologically modernising production facilities has become a priority for local authorities. Vietnam now figures as a stable, primary market for global textile machinery manufacturers. For Italy’s textile machinery industry, Vietnam currently ranks among the top ten export markets. Over the first 10 months of 2016, exports to Vietnam amounted to EUR 39 million; a 6% increase compared to the same period for 2015, ACIMIT reports. The knitting machinery constituted 9% of the total Italian textile machinery exports to Vietnam, whilst spinning machinery, with 37%, was most exported in the first 10 months of 2016.

Source: Knitting Industry

Back to top

Data on Chinese import to be collected paralyzing MMF sector

Minister of state for textile Ajay Tamta, who was in the city to inaugurate Surat International Textile Expo (SITEX) organized by the Southern Gujarat Chamber of Commerce and Industry (SGCCI) here on Saturday, said the data on Chinese import will allow the government to decide on an appropriate duty structure. As the import of undervalued fabrics from China, has paralyzed the MMF sector in the city. Around 50 percent of powerloom weaving machines are running at around 70 percent of their capacity, thereby rendering many textile workers jobless since last few years. The production of polyester fabrics has been reduced from 4 crore metre per day to around 1.8 crore metre per day. Minister of state for textiles Ajay Tamta has directed the textile commissioner's office to gather a comprehensive data from all the ports across the country on the volume of fabrics being imported into the country from China. Earlier, the ministry of textiles had asked textile industry leaders in the city to provide them with data of volume of fabrics being imported from China. The inquiry by India has been initiated under the supervision of directorate general of anti-dumping and allied duties, an arm of the ministry of commerce and industry, Tamta added. Tamta said that as it is impossible for the unorganized textile sector to gather relevant data on import of fabrics. It is required that the textile department should make efforts to gather information on the volume of imported fabrics, so that necessary action could be taken. According to Tamta, country specific duty, also known as a countervailing duty, on imports is imposed to nullify subsidies provided by other nations and is intended to make prices of domestic products competitive. Importing countries also have other options, such as introducing an anti-dumping duty, to make domestic prices at par.

Source: Yarns and fibres

Back to top

Pakistan Govt to achieve $35b exports by 2018 taking effective steps on all fronts

The Pakistan government to achieve its ambitious export target of US dollar 35 billion by 2018 is taking effective steps on all fronts and also exploring every aspect under a multi-pronged strategy. Monthly exports in Pakistan over the last few decades averaged at Rs38.82359 billion (USD 0.37 billion), reaching an all time high at Rs 275.483 billion (USD 2.63 billion) in September 2013. Pakistan’s main export partners are: 13.6 per cent United States,11 per cent China, 8.5 per cent each to United Arab Emirates and Saudi Arabia. The government endeavoring to improve the trade situation of the country including zero-rated sales tax regime for top five textile sectors to bring down industrial costs for the value-added textile sector and help increase their exports. Prime Minister Muhammad Nawaz Sharif gave Rs180 billion incentive package to exporters to boost the country’s exports. Under the package, sales tax and customs duty on import of textile machinery and cotton have been abolished. This will not only boost the exports and their products competitiveness in international market, but also lower the cost of doing business. A number of projects of power generation through hydel, coal, solar, wind, and other resources were being initiated under the CPEC investment, beside many others being financed by Pakistan government to ensure availability of cheaper electricity on sustainable basis. The government is committed to add 10,000 megawatts electricity to the system by 2018 and 30,000MW within the next few years..A network of roads, highways and motorways is being laid at a cost of Rs1000 billion to integrate different regions of the country. Keeping in view the fast developing China-Pakistan Economic Corridor (CPEC), the government is encouraging the local industrialists to upgrade their industrial units including allied and vending industry of the country besides product value addition to cope with possible challenges set to arise with industry’s expansion under CPEC. Trade Development Authority of Pakistan (TDAP) Director General (Sub-Regional Offices Punjab) Mian Riaz Ahmed said that TDAP was working to increase exports holistically while taking aboard all stakeholders. It was also building coordination with respective public-private sectors, taking up products value addition, encouraging export-oriented foreign investment and joint ventures, besides trade diplomacy in the key global markets for Pakistani products and services. Mian Riaz Ahmed added that TDAP was also focusing export products diversity as well as increasing product base and reducing dependence on traditional products and markets. He explained that TDAP was focusing new exports destinations including Mexico, Central Asian States, African countries and Doha, while regularizing banking channel with Iran, Masco and other countries that would definitely jack up sale of Pakistani products and services abroad. TDAP Director General said that they have added IT sector in their exportable services. They are also putting things in order for skill development of labour force, and TDAP had established Cutlery Institute at Wazirabad for training, research and skill development. At Gujrat, an Export Display Centre had been established under public-private partnership to showcase exportable products manufactured in Gujrat, Gujranwala, Wazirabad and Sialkot, for foreign buyers,he cited. Lahore Chamber of Commerce and Industry (LCCI) President Abdul Basit appreciated government’s initiatives on various aspects to stabilize exports. He, however, called upon the government to take further steps in this direction, citing that cost of doing business is another factor leaving Pakistani industry uncompetitive in the world market. This issue could be addressed through provision of inexpensive energy to industry and reduced customs duty on raw materials of export-oriented industry. He suggested that government should develop common export cluster facilities for firms producing technology-intensive products to enable SMEs in medium/high technology sectors to complement each other’s resources and expertise. According to Global Enabling Trade Report 2014, he mentioned, Pakistan ranked 88 in the availability of trade finance so establishment of a separate bank was indispensable to provide export finances/loans/credit on soft terms along with other services to exporters for rapid growth of exports. Abdul Basit also stressed the need to diversify the exports in terms of markets as about 60 percent of Pakistan’s exports go to ten countries namely, USA, China, UAE, Afghanistan, UK Germany, France, Bangladesh, Italy and Spain. There is ample potential for increasing exports to large dynamic world markets, where Pakistan was an under achiever i.e. South America, Africa, Central Asian Republics (CARs) and Russia where the combined share of Pakistan exports was less than 10 percent of the total exports of Pakistan. The commercial sections of Pakistan embassies in these aforementioned markets should showcase country’s exportable products in collaboration with the chambers of commerce, he maintained. Development of specialized/other skills is also crucial to ensure availability of skilled labour force. Also, competent engineers and managers for the industrial units were required to adopt new technologies to manage complex production processes in developing the products demanded internationally. Lahore Chamber President advised the government to also train the people on costing and pricing; process control; export market brand strategy; market research; market access requirement; online marketing, export marketing strategy, export documentation; packing and packaging standards.

Source: Yarns and fibres

Back to top