The Synthetic & Rayon Textiles Export Promotion Council

MARKET WATCH 29 MAY, 2017

NATIONAL

INTERNATIONAL

Textile mills association laments hike in peak load tariff, asks Punjab CM to roll back decision

Northern India Textile Mills Association (NITMA) today lamented hike in peak load tariff ordered by Punjab State Electricity Regulatory Commission for industrial consumers from June this year in the state. The industry has sought intervention of chief minister Amarinder Singh to hold back the decision. The president NITMA Rajiv Garg in a statement said that industry in Punjab was expecting an early implementation of policy to supply power to industrial sector at Rs 5per unit as was announced on 17th April 2017 by the government of Punjab. Garg said that the decision would make the power costlier by paise 78 from next month. The industry has sought intervention of chief minister Amarinder Singh to hold back the decision. The industry is seeing the PSERC orders as backdoor increase in hike as the power tariff are still to be announced for the current financial year. The association maintained that during an interaction with Apex Chamber of Commerce & Industry (Punjab) at Ludhiana on 25 th May 2017, the CMD of Punjab State Power Corporation Limited A Venu Prasad had indicated that the process was underway to supply power to the industrial sector at R 5 per unit as promised by the Punjab chief minster Captain Amarinder Singh. As per PSERC orders, the Time of Day tariff was also withdrawn that comprised of normal tariff minus Rs 1 per KVA from 10PM T 6 am next day (8 hours) for the industrial consumers.

Source: ET BUREAU 

Back to top

NGT allows textile units to open, but with a rider

Jodhpur: Textile and dying industrial units in Pali will resume functioning after eight months of closure. The National Green Tribunal (NGT) on Friday allowed conditional opening of these 578 units shut since October 3, last year. Considering the assurance of the respondents to comply with any direction passed by the tribunal, adverse effect on the employment and livelihood of the workers directly or indirectly dependent on the industries and prolonged closure resulting in the surreptitious and illegal dyeing and bleaching activities, the bench of the tribunal comprising Justice Jawad Rahim and member B S Sajwan permitted the reopening of these industries. Laying down various conditions, NGT has ordered to set up a monitoring committee comprising representatives of IIT, Central Pollution Control Board (CPCB) and Rajasthan State Pollution Control Board (RSPCB) and submit a report on the next hearing. "This committee will carry out inspections and surprise checks at the industries and Common Effluent Treatment Plants (CETPs) and will ensure disconnection of electricity where the industries do not have any consent to operate or they are not connected with CETP or do not have their own ETP," said counsel for one of the respondents, Pali Water Pollution Control Treatment & Research Foundation Trust.

Recommended By Colombia

Besides this, the tribunal has also directed to constitute a district-level task force, which will ensure that no industry functions illegally or in violation of the rules and norms for polluting industries and will also chart a surveillance mechanism as well as take punitive measures against defaulter units. NGT had ordered these polluting textile industrial units engaged in dyeing and printing of cloth to shut their operations on October 3 last year while hearing a petition moved by an environmental organization, Kissan Paryavaran Sangharsh Samiti. The untreated effluents of these units are since long polluting a seasonal river of the district, the Bandi river, whose water feeds the Nehda Dam, which has severely affected the agriculture in the region and polluted the underground water beyond consumption. Pursuant to the petition, NGT had ordered two dry inspections of all the 6 CETPs catering to 578 units by CPCB and RSPCB jointly, the reports of which had been submitted on October 26 last year and April 17 this year highlighting glaring deficiencies in functioning of the CETPs.

Source: TNN

Back to top

Trade pact with Mauritius may go live by end of the year

After announcing last year that it was willing to revive talks on a trade pact with India, Prime Minister of Mauritius Pravind Kumar Jugnauth had expressed hope of its completion. In India on a bilateral visit, Jugnauth on Friday said the Comprehensive Economic Cooperation and Partnership Agreement (CECPA) builds on the successful renegotiation of the double-taxation avoidance agreement (DTAA). After long drawn negotiations, the amendment to the 1983 Double Taxation Avoidance Convention (DTAC) was signed by India and Mauritius last May. With the changes, India can impose capital gains tax on investments routed through Mauritius. While the draft of the CECPA is expected to be ready by the mid part of the year, it may be completed by the year end, Dnyaneshwar Mulay, Secretary (Consular, Passport, Visa and Overseas Indian Affairs departments) at External Affairs Ministry said. The gamut of India's relation with the island nation off the coast of Africa revolves around investment and taxation, the CECPA is expected to give a boost to bilateral trade.  Case in point, the nation has been the biggest single source of foreign direct investment (FDI) into India since 2000, with total equity inflow of $ 585.95 billion over the period, corresponding to 34 per cent of all FDI. As opposed to this, trade was only $ 876 million in 2015-16, down from $ 1.93 billion in the previous year. India exports petroleum products, pharmaceuticals, cereals, cotton and electrical machinery, among others, to Mauritius. Major imports include iron and steel, pearls and precious/semi-precious stones. Negotiations on the CECPA had broken down in 2013 when India had decided to formally suspend talks owing to differences over the DTAA. India had cautioned Mauritius the negotiations will not resume till the island nation expedited revision of the DTAA. Speaking at an industry meet organised by industry body CII, Jugnauth said that Mauritius can be a safety net for Indian investors looking to set up in the African continent. He said that his country has a wide array of DTAAs with most African nations and thereby Mauritius may be a significant stepping stone for Indian investments in infrastructure in Africa. The nation has consistently been ranked as the most business friendly nation I Africa by the World Bank and is also one of the 10 nations globally, which is completely free from any form of conflict.

Source: Business-Standard

Back to top

Foreign Apparel Retail chains seek entry into Indian market, MSMEs to benefit

As per the norms, in investments that involve FDI of more than 51 per cent, it is mandatory to source at least 30 per cent of the value goods from MSMEs in the country. This might give a push to the textile MSMEs in the country. The companies that have sought government’s clearance include Fashion chain Benetton Group, Actroserba Active Wholesale Pvt. Ltd, Katarzyna Dmoch and Rami Shinnawie. The have reached out to the government seeking green signal to set up a 100 per cent foreign owned retail firms in the country. Currently 49 per cent FDI is permitted for which the companies do not have to seek clearance from the government. In case the companies need to expand it further, the government has to give clearance after ensuring that certain terms and conditions are met. These terms and conditions include that the products should be of a single brand only and must be sold under the same brand globally. Recent reports suggest that the Government is keen in encouraging 100 per cent FDI in retail sector to attract more large player investments in the industry.

Source: KNN

Back to top

A trade pact that could hit India hard

There was clearly huge pressure on India to conclude negotiations this year and to make major concessions in goods, services and investment at the ministerial of the Regional Comprehensive Economic Partnershipin Hanoi (May 21-22).   Minister of Commerce and Industry Nirmala Sitharaman said at a press briefing that India has not yet conceded ground, though she outlined several challenges India faces. Clearly there are problems.

Reasons for caution

RCEP is being negotiated between India and 15 other countries including the 10-member Asean, Japan, South Korea, New Zealand, Australia and China. With a high rate of poverty, a large rural population consisting mainly of small and marginal farmers and landless labourers, an immature industrial sector, a growing but narrow service sector and vulnerable health and education sectors, India had very rightly maintained a cautious approach in its FTAs on goods, intellectual property rights, and many new issues such as investment, government procurement and competition policy.  India’s cautious approach faces a major paradigm-shift given the current negotiations in RCEP. It has the potential to overthrow India’s policies of rural development and industrialisation especially ‘Make in India’, and the promise of the Prime Minister to provide accessible healthcare and medicines to all. Most important, it threatens the policy flexibility and sovereignty to pursue independent economic, social and environmental policies. In goods trade, India has already agreed to give up the three-tier tariff reduction proposal that offered different coverage for Asean, Japan and South Korea, and a much lower level of tariff reduction coverage for New Zealand, Australia and China. Currently, it is believed to be under pressure to agree to uniform and very high product coverage of around 92 per cent for all partners. According to Commerce Ministry officials, India has offered 80 per cent coverage with 5 per cent margin (lower) for more developed partners. It has also asked for a longer implementation period for China. While 92 per cent coverage is inconceivable, even 80 per cent will have serious implications for both agriculture and industrial products. In agriculture and allied products, the plantation sector is already reeling from the impact of the India-Asean FTA even with relatively high protection of agriculture and a tariff-coverage of 73-80 per cent. If tariff cuts cover 92-80 per cent of products, the impact will be huge. On the other hand, New Zealand’s export-oriented dairy products will decimate India’s growing dairy sector, which is still largely small-scale. If India offers to reduce/eliminate import tariffs on a larger number of industrial products than already committed to Asean, Japan and South Korea, its industrial sector could be under stress. Even without an FTA, India faces a total trade deficit of ₹3.45 lakh crore in 2015-16 with China. If India has to cut duties on 92 per cent of goods in RCEP, India will face threats from both Asean and China.

Self-defeating tactics

But manufacturing woes will not end there. E-commerce commitments, if any, will allow companies such as Alibaba from China to displace Indian manufacturing especially in the SME segment. Further, India is being asked to eliminate export restrictions on minerals and raw material by Japan and South Korea; this may threaten domestic raw material availability for industrialisation and encourage over-mining. India is openly pitching services as its offensive area of interest and may be willing to sacrifice goods tariffs for gains in services. This can be the most dangerous of India’s current trade policy stance and can backfire very easily. India has demands for both Mode 3 (investment) and Mode 4 (movement of people) with a proposal for a RCEP business visa for professionals. India’s demand for Mode 4 is unlikely to be granted. What India hopes to gain in Mode 3 for its outward FDI is not clear as it is not competitive in most services except for IT and ITES. In spite of placing the new Model Bilateral Investment Treaty (BIT) text as a basis for investment protection negotiations and already facing 20 BITs cases, India is under heavy pressure to agree to the investor state dispute settlement provision in RCEP without the safeguards provided in the Model BIT. The investment chapter in RCEP is also pitching for strong provisions on IPRs. This framework will increase India’s liability and severely limit its policy space to implement any policy reform that is seen as detrimental to investors’ profits.

IPR and e-commerce

In the area of intellectual property rights, several members have been pushing provisions that go beyond TRIPS, with serious adverse consequences for access to generic medicines manufactured in India. The minister denied having agreed to any so far. Agreeing to data exclusivity, extending patent terms and unduly strong enforcement measures will weaken the entire generic medicine sector and take away several health safeguards in India’s Patent Act, notably section 3(d). This will make medicines inaccessible not only for Indian patients but for those in the entire developing world. In addition, since India has rightly fought against ‘TRIPS plus’ provisions in its FTA negotiations with EU and European Free Trade Association, there is no rationale for it to change its stance in RCEP.  Finally, it seems India may agree to binding e-commerce rules in RCEP. This will have several implications including compromising government revenues by losing potential customs duties, compromising regulation and control over the new and emerging trading space, threatening data privacy and security not only of individuals but also of the government, and compromising regulation across a number of government ministries including that of the finance, commerce and industry, health and education, labour and so on. For example, by giving away control over data, the Government may compromise potential future industrial policy and lose control over financial policy. India seems to have resisted the pressure to agree to specific commitments in goods, services, and investment and other areas in Hanoi. But a push for negotiations to be concluded by this year seems to have been agreed, even if not in very specific terms. Conclusion this year will be highly premature. India needs to assess its own choices and weigh the impact on its whole policy space vis-a-vis the narrow base of the advantages that RCEP may offer.

Source: Business Line

Back to top

Modi's Europe tour: Will India's FTA pragmatism bring EU out of its shell?

Trade in general and FTAs in particular are increasingly playing an important role in India’s diplomatic landscape at a time when its benefits are being questioned in several capitals. Prime Minister Modi has displayed a clear inclination for leveraging external sector for domestic economic growth. It is therefore not surprising that even before the reports on RCEP (Regional Comprehensive Economic Partnership) negotiations have ceased, talks about India-European Union (EU) Free Trade Agreement have begun to surface. The issue is simple. Can the EU really come out of its shell and move for a deal. The context is provided by Brexit which has spurred UK to push for a separate trade deal with India and so is a competition for EU and the victory of Mr Macron as President in France, that would be expected to tame the insular lobby within the EU.

Political Commitment

It is these developments which provides the excitement about a deal when Prime Minister Modi leaves for a visit to Europe. Would there be a significant progress on a free trade deal with the EU? The six-day tour will begin on May 29 with PM Modi travelling to Berlin, where he will meet German Chancellor Angela Merkel. There has to be a note of caution, though. The expectations for discussions on India-EU FTA were high even during the last trip of the PM to Brussels; commerce and industry minister Ms Nirmala Sitharaman was also part of the delegation but her counterpart did not turn up at the summit meeting. In fact, later the Minister tweeted, “We in India want that talk to resume. We wanted to resume it at the earliest, we want a talk.’ As one noted above, the environment has changed this time. The European political leadership seem to be extremely open to the idea of FTA with India. The recent visit by Ms Sitharaman to Italy and an earlier visit of a delegation from Germany are pointers to this political commitment. Given the way EU’s other partnerships with the rest of the world has not shaped up too greatly for the continent, there is a good indication that it would want a deeper cooperation with India. But of course there are worries? Some of them are the EU concerns about whether larger integration with India would help its economies where the best of them are growing at only 1.9 per cent.  Is the EU anxious about currencies being so volatile particularly the Euro? These are tough questions, made more significant as its bilateral trade with India has grown quite impressively. It has increased from $ 55 billion in 2006 to $96 billion in 2016. With these in mind, one can examine the two specific areas of strain holding up the FTA.    

Financial Services and Investment

First among them is the proposed EU-India Bilateral Trade and Investment Agreement (BTIA). Since 2015, India has come up with a new template on BTIA, which includes a strong provision on tax liabilities in accordance with India’s laws. The new FTA talks would have to factor in these provisions for the BTIA.  A connected concern is banking services where conflicting positions have already emerged. The EU has been pressing for more liberalization of FDI in multi-brand retail and insurance. Yet even as EU makes the case for liberalization of Indian banking and financial sector and opening up of FDI in multi-brand retail, India has countered it with a demand of greater market access in Mode-1 and Mode-4 (ie movement of labour and people). None of those have not made much progress so far.

IPR and Public Procurement

Launching of new IPR policy by India may have addressed several of the European concerns.  Apprehensions still abound on exclusive rights over clinical trial data and avenues available for redressal. Since several Indian bio-pharmaceutical companies have also entered in drug development, a fresh look may be required in this sector.  It is also important to point out here that within the ambit of IPR issues related to geographical indications, bringing in enhanced market access for spirits and wines is also being pressed for by the EU.  In this case a greater degree of discussion would pave way for some solution.   Any such would have to factor India’s demand at WTO for extension of geographical indications to products other than wines and spirits, for instance, Darjeeling Tea and other products.  Similarly the new initiatives in public procurement signed on by India may play an important role in reassuring several European partners in New Delhi’s abiding faith in principles of transparency and the Ease of Doing Business.  A Procurement Policy Division in the Department of Expenditure, Ministry of Finance has been created to facilitate greater uniformity and harmonization in public procurement process.  The creation of public procurement portal and GEM-market place reflects continued Commitment in this area.

Agriculture and Fisheries

In the realm of agricultural trade, EU’s peak tariff rates on dairy products, fruits and vegetables, sugar and confectionary, continue to be extremely high. Similarly, the fisheries subsidy is also a major point of botheration for India.  Those subsidies that contribute to overfishing, is estimated to be as high as $35 billion. Just last month the European Parliament voted in favour of a resolution to allow for the construction of new fishing boats to extend fishing to the outermost regions, in addition to the assistance being extended through European Maritime Fishing Fund (EMFF) funds. According to a recent EU report monitoring the performance of the Common Fisheries Policy, Europe’s precious fish stocks are still being destroyed for a quick profit, while European citizens are being fed a raw deal by both the big end of the fishing industry and national governments. This naturally has spill over effects on the markets of other countries including India.  One hopes that this time, when Ms Sitharaman is there, there would be a resolution of this concern. India-EU FTA thus makes strong sense. Yet as both of them are strong economies with a decentralised structure which spawns powerful domestic lobbies, getting to allow more market access in each other’s territory is not easy. How far the FTA moves, is therefore going to be tricky.

Source: Business Standard

Back to top

Fashion Retail has Its Tail Up as Ecomm Licks its Wounds

GOOD YEAR Apparel & fashion divisions of 4 of nation's top 5 listed retailers grew at the fastest pace in 3 years in FY17 as online firms trimmed discounts to shore up finances  Sales at the apparel and fashion divisions of four of the nation's top five listed retailers in fiscal 2017 grew at the fastest pace in three years, as the intensity of competition ebbed with online rivals eschewing deep discounts to shore up finances. Future Lifestyle Fashions, the Pantaloon division of Aditya Birla Fashion & Retail, Arvind's Lifestyle Brands and Trent posted 14-26% sales growth in the year through March, their best performance since fiscal 2014. At Shoppers Stop, the other company among the top five, sales growth was slower at 7%. An onslaught of foreign-funded ecommerce firms to catch the value-conscious shoppers with large discounts had eaten into the sales of brick-and-mortar retailers since 2014. The price differentials have now started disappearing for many categories, as the online companies face pressure from investors to report profit and their offline rivals offer matching prices. “We realise that the customer wants shopping experience and latest assortment of merchandise, instead of just price-offs,“ said Rakesh Biyani, joint managing director at the Future Group that runs Central, Brand Factory and over a dozen brands. “Also, online retailers are under pressure and fresh merchandise aren't discounted now compared to a few years ago. “While ecommerce companies are still pushing offers and promotions in electronics and mobiles, discounts in lifestyle and apparel products are mostly limited to select brands such as online-exclusive ones, old merchandise and own labels. There were also some regu latory changes that have affected their pricing strategy, such as dismantling of a model wherein one or two sellers contributed a majority of their revenue. “And finally,” said a Credit Suisse report,” “there was also management tur moil in some of the companies. “ Growth in the Indian ecommerce market slowed down in late 2015 and was flat at best until mid-2016, the Credit Suisse report said. Unlisted retailers said they also posted strong growth and attributed the performance to fresh merchandise at their stores and fewer discounted products of big brands on online portals. “We withstood the onslaught of both online retailers and international brands coming in. There are enough consumers who look for good merchandise and experience and not just discounts,“ said Kabir Lumba, managing director at Lifestyle International, an unlisted firm that claimed its sales grew 24% to cross the `7,000 crore mark last fiscal year. “Three years ago, we had a revenue target of `6,000 crore for FY16-17 and we exceeded that.“Etailers, soaring high on heady valuations and funding spurt during fiscal 2012-15, faced a rude awakening in FY16-17 due to mounting losses. During fiscal 2015-16, the combined losses of ecommerce majors Flipkart, Amazon and Snapdeal were nearly `12,000 crore. Changing regulatory landscape, drying up of easy funding from investors seeking bang for the buck and plummeting valuations forced etailers to shift focus to profitability from growth. Meanwhile, brick-and-mortar retailers also dabbled in online sales, helping them sell to consumers who preferred buying electronically . Arvind Lifesty le Brands managing director J Suresh said his company's performance was boosted also by online sales.

Source: Economic Times

Back to top

Textile major Raymond to invest Rs 350 crore in capacity, retail expansion this year

Mumbai: The Raymond on Sunday said that Textile and apparel major will invest Rs 350 crore in capacity and retail expansion this year. This will help ramp up its apparel sale and grow the fabric business over the next few years, a senior company executive said.  “Of the Rs 350 crore, Rs 200 crore will be allocated to manufacturing expansion, both in India and offshore, while Rs 150 crore will go towards retail expansion,” Sanjay Behl, CEO, Raymond, told PTI here. The company is setting up a large suiting manufacturing plant in Ethiopia in Africa that will be operational this year and has also undertaken a significant expansion in Amravati in Maharashtra for cotton fabric. “The Ethiopia plant will manufacture 2 million jackets, and the Amravati plant has a capacity of 3 million metres of linen fabric that will be added this year,” Behl said. Raymond is also looking to expand its retail presence to about 1,500 stores by 2020. The company will open nearly 150-200 stores this year, Behl indicated. Raymond has more than 1,000 retail stores that are franchise based. Raymond brands include Raymond (ready to wear), Raymond Made to Measure, Color Plus, Park Avenue and Parx. It has also tied up with the Khadi and Village Industries Commission (KVIC) and launched its branded Khadi by Raymond to promote the fabric globally. “We are building capability in finishing, design, and distribution for khadi and investing step by step,” he said. The new label will be available at KVIC outlets, besides its own, across India and leading e-commerce portals beginning August this year.

Source: NewsNation

Back to top

Global Crude oil price of Indian Basket was US$ 50.63 per bbl on 26.05.2017

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$ 50.63 per barrel (bbl) on 26.05.2017. This was lower than the price of US$ 52.73 per bbl on previous publishing day of 25.05.2017.

In rupee terms, the price of Indian Basket decreased to Rs. 3270.72 per bbl on 26.05.2017 as compared to Rs. 3401.49 per bbl on 25.05.2017. Rupee closed weaker at Rs. 64.59 per US$ on 26.05.2017 as compared to Rs. 64.51 per US$ on 25.05.2017. The table below gives details in this regard:

Particulars    

Unit

Price on May 26, 2017 Previous trading day i.e. 25.05.2017)                              

Pricing Fortnight for 16.05.2017

(April 27, 2017 to May 11, 2017)

Crude Oil (Indian Basket)

($/bbl)

             50.63                (52.73)

49.22

(Rs/bbl)

            3270.72           (3401.49)

3162.88

Exchange Rate

  (Rs/$)

             64.59                (64.51)

64.26

 

Source: PIB

Back to top

Global Textile Raw Material Price 2017-05-26

Item

Price

Unit

Fluctuation

Date

PSF

1105.42

USD/Ton

0%

5/26/2017

VSF

2152.66

USD/Ton

0%

5/26/2017

ASF

2298.11

USD/Ton

0%

5/26/2017

Polyester POY

1112.69

USD/Ton

0%

5/26/2017

Nylon FDY

2450.83

USD/Ton

0%

5/26/2017

40D Spandex

5265.29

USD/Ton

-0.82%

5/26/2017

Polyester DTY

5759.82

USD/Ton

-0.13%

5/26/2017

Nylon POY

1338.14

USD/Ton

0%

5/26/2017

Acrylic Top 3D

2305.38

USD/Ton

0%

5/26/2017

Polyester FDY

2472.65

USD/Ton

0%

5/26/2017

Nylon DTY

1330.87

USD/Ton

0%

5/26/2017

Viscose Long Filament

2690.83

USD/Ton

0%

5/26/2017

30S Spun Rayon Yarn

2807.19

USD/Ton

0%

5/26/2017

32S Polyester Yarn

1687.22

USD/Ton

0%

5/26/2017

45S T/C Yarn

2690.83

USD/Ton

0%

5/26/2017

40S Rayon Yarn

2967.18

USD/Ton

0%

5/26/2017

T/R Yarn 65/35 32S

2312.66

USD/Ton

0%

5/26/2017

45S Polyester Yarn

1832.67

USD/Ton

0%

5/26/2017

T/C Yarn 65/35 32S

2254.48

USD/Ton

0%

5/26/2017

10S Denim Fabric

1.35

USD/Meter

0%

5/26/2017

32S Twill Fabric

0.85

USD/Meter

0%

5/26/2017

40S Combed Poplin

1.18

USD/Meter

0%

5/26/2017

30S Rayon Fabric

0.65

USD/Meter

0%

5/26/2017

45S T/C Fabric

0.67

USD/Meter

0%

5/26/2017

Source: Global Textiles

Note: The above prices are Chinese Price (1 CNY = 0.14545 USD dtd. 26/05/2017) The prices given above are as quoted from Global Textiles.com.  SRTEPC is not responsible for the correctness of the same.

Back to top

Textile and fashion industry generates half of Italy’s trade

Half of the Italian commercial surplus comes from exports of Italian textile and fashion companies ½ The ninth edition of the Luxury Summit annual conference organized by Il Sole 24 Ore Impresa took place in Milan 2/2 Italian fashion revenues continue to outperform Italy’s broader economy, and in the last part of 2016 and in the first quarter of 2017 they even picked up speed. That would already be good news in itself, but it is even more so because the textile and fashion industry is Italy’s largest after machinery.  “If we consider the fashion system in the widest sense, including products such as eyewear, jewelry and cosmetics, in 2016 the turnover was close to €84 billion,” said Camera della Moda President Carlo Capasa at the Sole 24 Ore Luxury Summit. “Exports amounted to $62 billion, creating a surplus of $25 billion, half of Italy’s total, which in 2016 recorded an absolute record. The fashion system, I will never stop repeating, promotes a positive image of Italy in the world and is an extraordinary economic engine.” The January-February look positive, Capasa said. “The fall in the sales in United States has gone from -4.5% in 2016 to -0.2%, while China has rebounded from an -0.2% to a + 4.2%,” he said. “Japan and Hong Kong are also good, with exports growing at 5.8% and 8.5%, respectively. Exports from Italy to Russia are up 19.5%.” Exports are what have been driving economic growth in Italy overall in recent years, and not just fashion, given the drop in domestic consumption. “The world crisis triggered in 2008 by Lehman Brothers collapse has put a strain on the fashion system, but today we look forward to the future with cautious optimism,” said Claudio Marenzi, trade group Sistema Moda Italia president. “First, because with Carlo Capasa and the Minister of Economic Development Carlo Calenda, we have built short, medium and long term team projects. Second, because Made in Italy continues to be appreciated in the growing countries, such as China and Korea in Asia. However, we can not hide two problems: the slowdown in exports to the United States and the growth of tourist flows from China to Russia, to the detriment of Italy and France.” Companies need to increase their presence on international markets and need to find capital to make it happen especially for medium-sized businesses, said Maurizio Castello of KPMG. Boston Consulting Group chief Davide Consiglio focused on consumer segmentation, a strategic theme for luxury operators. This exercise is more statistical than intuitive, and is likely to become sterile unless a strategy is found that maximizes the power of data. According to Davide Consiglio, the fashion and luxury industry must exploit the new opportunities for hyperpersonalization offered by this super-charged segmentation. “Growth in luxury will continue, but if between 2009 and 2013 it was 8.3% and between 2013 and 2016 3.8%, from 2023 we expect a + 2-3%. To keep up this pace, customization is strategic: already 22% of luxury consumers consider this important when they make purchases, a percentage that is expected to increase in every country, and in particular among the Millennials, born after the 1980s.”

surplus

 

Source: ITALY EUROPE

 

 Fibres key to environmental sustainability in the textile and apparel supply chain

The environmental sustainability of the textile and clothing supply chain depends significantly on the way that fibres are grown or manufactured and the raw materials used, according to a report in the latest issue of Global Apparel Markets from the business information company Textiles Intelligence. Fibres represent only the starting point of the textile and apparel supply chain. But it is in these areas where much of the damage to the environment is caused. In the case of wool, the problems start with the rearing of sheep. Manure generated from livestock, for example, has contributed significantly to the increase in atmospheric greenhouse gases over the last 250 years, and faecal matter has been known to contaminate waterways in areas where sheep are farmed. Also, high stock numbers can be a cause of significant soil erosion which can trigger desertification. In the case of cotton, there is a problem of water usage—it is said that around 8,500 litres of water are needed to grow the cotton used in the manufacture of a T-shirt and a pair of jeans. Also, extensive use is made of pesticides, synthetic fertilisers and other chemicals which can cause damage to the environment. Moreover, pesticides can cause considerable harm to human health. If cotton is going to be produced in significant quantities for the foreseeable future, there will be rising pressure to find ways of improving the environmental sustainability of cotton growing. A variety of initiatives have emerged with this objective in mind, including the Better Cotton Initiative (BCI), organic cotton, Cotton made in Africa (CmiA) and Fairtrade certified cotton. Despite these initiatives, these so-called “identity cottons” account for only a small proportion of total cotton production. In 2015 organic cotton accounted for a mere 0.5%. And even when other types of sustainable cotton are added, the total is only 16%. Admittedly, this share is expected to reach 35% by 2020. But most identity cottons fall short of the standards of organic cotton in terms of environmental sustainability as they still involve the use of artificial pesticides and fertilisers. Set against these issues, man-made fibres would appear to provide a more environmentally friendly alternative. In the manufacture of man-made cellulosic fibres—such as cuprammonium rayon (cupro), lyocell, modal and viscose—most of the raw material used is wood pulp, which can be obtained from a naturally occurring renewable resource in the form of trees. Moreover, there is scope for making the raw material even more environmentally friendly by sourcing the trees from managed forests. However, most cellulosic fibres are made using a process which is unfriendly to the environment—with the notable exception of lyocell fibres, which are produced using a closed loop solvent spinning process. In the manufacture of synthetic fibres, the raw materials are less environmentally friendly than those used in the production of cellulosic fibres as the bulk are derived from the petrochemical industry, starting with non-renewable fossil fuels. But a number of initiatives are under way to make synthetic fibres from sources which are more sustainable. Recycling initiatives are gathering pace, and an increasing volume of fibres is being made from polymers derived by processing industrial waste generated in factories—or from polymers obtained by processing post-consumer polyethylene terephthalate (PET) drinks bottles. Also, synthetic fibres such as Ingeo are being made from agricultural crops. However, critics argue that the use of agricultural crops as raw materials for synthetic fibres uses land which should be devoted to feeding the world’s growing population.

The textile and apparel supply industry still has a long way to go. Despite efforts aimed at improving the environmental sustainability of the supply chain, sustainable fibres account for only a small proportion of the 89 million tons of fibres produced globally.

Source: AJOT

Back to top

International experts head to Chemnitz for first Sustainable Textile School

Over 30 international specialists from across the textile industry will gather in Chemnitz in eastern Germany from 18-20 September 2017, for the ‘premiere’ of the Sustainable Textile School. Over three days, experts from the research community and industry will share their knowledge about how various businesses across the textile value chain can be transformed towards a sustainable approach. To foster knowledge transfer and train future generations of textile experts, researchers and practitioners will have the opportunity for fruitful exchange, and students will have the chance to participate through special sponsorship. The initiative is the brainchild of Chemnitz University of Technology and Gherzi Textil Organisation, who will cooperate with many international, national and regional partners to bring the idea to fruition. Sustainability in the textile industry has increased in relevance for consumers in recent years and will become an important criteria and competitive advantage for manufacturers in the textiles industry, the partners say. In response, Gherzi and TU Chemnitz aim to bring to life a Sustainable Textile School, where the attention of students and professionals would be further drawn to the subject with instruction from experts.  “The sustainability discussion in the textile chain has progressed far in the last decade. This important subject has moved even farther into the consumers’ focus through the media presence of the Greenpeace organisation and movies such as The True Cost in the past few years,” a spokesperson for The Sustainable Textile School said. “Most of the brand manufacturers have by now decided to take up the subject and use it for their own purposes in the meantime, not only to develop further sales and unique selling points, but also to design their global supply chains cost-efficiently, productively and sustainably,”. “TU Chemnitz and Gherzi group believe that this trend is no longer stoppable and will certainly become the decisive factor for the innovative and cost-oriented textile industry.” The assessment gave rise to the plan to develop an series of events for international professionals and students from the textile chain in the next few years that is to become a central place for innovation and further training in the area of sustainability for the textile industry. The focus is on a Sustainable Textile School that will enable professionals and students from all branches of the industry to have a close look at all value-added stages under the focus of sustainability and to derive the resulting tasks in a company.

Source: knittingindustry

Back to top

China offers to import more from US in return for easing of export curbs

Geneva: China has decided to offer tens of billions of dollars of market access to the US by importing liquefied natural gas, crude oil, refined oil, beef, soybeans, cotton, civilian aircraft, integrated circuits, machine tools, and Hollywood movies, in addition to sending thousands of students and tourists to America. As part of a bonanza for the Trump administration, China wants specific improvements in the imposition of trade remedy measures such as anti-dumping and countervailing duties on Chinese goods, lifting of export-control measures for high-technology products for civilian use, and fair treatment of Chinese investors, including its state-owned enterprises, in mergers and acquisitions in the American market. At a time when President Donald Trump is ratcheting up pressure on the European Union because of the bulging trade surpluses accruing to Germany on account of its soaring exports of cars and other products to the US market, and economic and trade tensions between New Delhi and Beijing are rising, China’s decision to strike a grand bilateral bargain with Washington is of considerable significance, according to trade analysts. Recently, India boycotted China’s grand launching of the $900 billion “One Belt One Road” (OBOR) initiative, while Germany expressed sharp concerns about lack of transparency and little access for its companies in the OBOR. In a 117-page report unveiled by the Chinese ministry of commerce on 24 May, and reviewed by Mint, Beijing maintained that China-US relations, after 45 years of accelerated liberalization, must become “mature, broad-minded, visionary and wise” so as to bring about “win-win cooperation”. It dismissed concerns about its continued surplus with the US, suggesting actual trade gap between the two countries would be around $164.8 billion after taking into consideration the US’s surplus in services and the deficit in goods in two-way trade. “Over the past decade, the US trade deficit with China was gradually decreased,” it maintained. The average growth rate of US exports to China was nearly three times the growth rate of overall US exports over the past decade, and twice the growth rate of China’s exports to the US, argued China. “The US has maintained long-term surplus in trade in services and in 2016, the US exported to China 51 movies, obtaining revenue of US$16 billion. Chinese tourists and students in the US spent more than US$51 billion.” The US must settle for a harmonious trade and economic relationship, argued China. “The US side should also abandon the Cold War mentality, relax control on its exports to China, and create opportunities to expand export of high-tech products to China,” it said. Against the backdrop of concerns about Chinese surpluses, China said it would “further increase imports of agricultural products such as soybeans and cotton from the US and speed up negotiations with the US on terms regarding traceability and inspection and quarantine for US beef to enter China, which will benefit 6 million American farmers”. As regards imports of manufactured goods from the US, China said it would increase purchase of “advanced manufactured goods such as aircraft, integrated circuits and machine tools”. China said the US must treat imports of Chinese goods without using the price of alternative state system to calculate the dumping margin on Chinese products during anti-dumping investigations. “The abandonment of the alternative state approach in the anti-dumping investigation against China under Article 15 (of China’s accession protocol) is unconditional,” said China. Effectively, the US must not insist on conditions such as “the priority application of domestic laws, China’s excess capacity, (and) market economy status” for fulfilling the World Trade Organization (WTO) commitments. It called on the US to review its trade remedy measures on Chinese products involving 153 duty orders (110 anti-dumping and 43 countervailing duty orders). China wants the US to lift the existing export-control restrictions for selling high-tech products for civilian purposes to China. “China hopes that the US side will take practicable action in easing the export control against China and effectively loosen the restrictions on products exported to civilian users for civil purposes” for reducing the US trade deficit. China emphasized the importance of WTO in addressing global trade and investment problems, suggesting that if “members cast away the WTO rules in bilateral trade talks, the global economy may be led into the danger of ‘beggar-thy-neighbor’ and ‘zero-sum-game’.”

Source: LiveMint

Back to top

Under new leadership, Hyosung takes on the world

With textile giant securing growth momentum, Hyosung bets on future with carbon fiber, big data When Hyosung joined the so-called “1 trillion won club,” a league of Korean companies that made 1 trillion won in operating profit last year, the market response was unanimous -- that it didn’t happen by chance. Over the past 20 years, Hyosung, the dominant South Korean conglomerate focusing on fiber and chemicals, has undertaken a series of restructuring efforts and steadily invested overseas to cut costs while continuing research and development at home. Its top market position in key products including tire cords and spandex has strengthened the company’s financial muscle over the years, and curbed its debt-to-equity ratio. Hyosung’s stock value also rose 45 percent on-year as of Friday, on the expectation of its stalwart financial portfolio and sales growth. “Riding the robust yearly operating profit that topped 1 trillion won (for the first time last year), the forecast for market cap growth and balance sheet reduction remains surefooted,” Son Young-joo, an analyst at Kyobo Securities, wrote in a Tuesday report of Hyosung. “Oil price fluctuations will have little effect on (Hyosung’s) growth confidence backed by its price competitiveness and market dominance.” Hyosung's factories in Vietnam (Hyosung) Indeed, the prospect of Hyosung’s performance this year appears to be even rosier as it already garnered 2.87 trillion won in revenue in the first quarter of the year with an operating profit of 232.3 billion won. It was a record quarterly earnings, according to the company. Behind such robust performances is the strategic and innovative leadership illustrated by Cho Hyun-joon. Cho, the eldest son of former chairman S.R. Cho, officially took the office at the beginning of the year. The new chairman has been spearheading the growth of the textile giant in recent years, indicated by its stellar performance since 2012. Hyosung gained 223 billion won in operating profit five years ago, and the size of its income has since surged more than 350 percent on strategic decisions made by the new chairman.

Hyosung Chairman Cho Hyun-joon (right), then president, visits the booth of France’s multinational firm Alstom at an exhibition of the International Council on Large Electric Systems in Paris in August, 2014.  “The possibility of Hyosung reaching the 1 trillion won mark again this year seems to be promising. Along with this sense of confidence, we also feel that the company is becoming more energetic than before with new the leadership rising,” a Hyosung spokesperson said. Launched in 1966 by Cho’s grandfather Cho Hong-jai, Hyosung started producing nylon in Ulsan after the Korean War. Acquiring Hanil Nylon, a rival at that time, made Hyosung the nation’s largest synthetic fiber company. After the founder’s son S.R. Cho returned upon completing his education in Japan and the US, the company expanded on growing demand for clothing, and also entered the infrastructure market by acquiring a local producer of power equipment. The company underwent massive restructuring after the 1997-1998 Asian financial crisis, selling its blue chip businesses including Hyosung BASF. Hyosung realigned 30 operational units under five groups, by incorporating its affiliates. The restructuring process, down the road, turned out to have been a golden opportunity for Hyosung, as it led the company to focus on what they can do the best -- high value-added textile products. The company has since retained its top position in the global markets for spandex and tire cord market, as well as yarn for automobile seat belts and textiles for airbags. Despite an increase in raw material prices, Hyosung expects steady growth of its cash cow products due to growing demand. Cho’s successful management has been reflected in the balanced business structures encompassing textiles, industrial materials, chemicals, heavy industries, construction, finance and trade, all of which operated in the black last year. In addition, Nautilus Hyosung America, the company’s operation in the US, is the largest ATM provider there. A notable representation of Cho’s nimble management is the group’s operation in Vietnam. Since entering the market in 2008, the South Korean company invested 1 trillion won so far, building manufacturing facilities for spandex, tire cord and power equipment such as low-pressure motor. It also has a production complex in Turkey, targeting the premium market in Europe. As a B2B enterprise, Cho has always stressed on the importance of ceaseless efforts in developing cutting-edge technology, the company said. For one, Hyosung is betting on carbon fiber materials, which are one-quarter the weight and 10 times stronger than steel. With the product branded TANSOME, the company expects to see growing demand as it can be applied not only to sports gear, but also for automobiles and space rockets. This year, it is also moving to further advance into new items including ultra-high voltage transformers, energy storage systems and static synchronous compensators, a cutting-edge energy solution for which Hyosung is the only Korean company to have commercialized technologies. The company also expects to produce a synergy effect by applying big data analysis based on cloud computing to its technical prowess, through its IT affiliate Hyosung ITX, to expand its systems integration and systems management businesses.

Source: KoreaHerald

Back to top

EPB to propose $38b export target for FY '18

The Export Promotion Bureau (EPB) will propose setting the country's merchandise export target at US$ 38.0 billion for the upcoming fiscal year (FY) 2017-18, officials said. The target is 7.82 per cent or $ 1.0 billion higher than that of the current FY's target of $ 37.0 billion. The EPB would also project an additional $3.50 billion in earnings from services export, raising the next FY's total export target to $41.50 billion. The proposals were placed at a meeting of the EPB last week when leaders of major export-earning sectors, including ready-made garment and frozen fish, differed with the projection. Apparel sector leaders opined that the target would be achieved if cash support for new market exploration is continued, political stability ensured and local currency justifiably devalued. The shrimp exporters stressed the need for ensuring smooth supply of raw material for increased production. The EPB expected the export receipts to reach $ 38.60 billion -- $35.24 billion from goods and $3.36 billion from service sectors -- by the end of the current FY, reflecting a 3.62 per cent growth over the previous fiscal. "We have initially proposed the export earnings target for the FY18 through consultation with all the stakeholders," acting vice chairman of EPB Avijit Chowdhury told the FE. The proposal would soon be sent to the Ministry of Commerce (MoC) for approval. In the current fiscal year, all major 10 export items have been projected to grow. Earnings from knitwear export would increase by 8.52 per cent, woven garments 5.77 per cent, home textile 9.77 per cent, leather and leather products 9.02 per cent, medicines 8.32 per cent, jute and jute goods 9.39 per cent, engineering products 25.65 per cent and frozen and live fish 0.14 per cent. "The proposed target can be achieved if the exchange rate of local currency depreciates against US dollar, cash incentive for exploration of new markets continues and political situation remains stable," said Mahmud Hasan Khan, vice president of Bangladesh Garment Manufacturers and Exporters Association (BGMEA). Next year is also critical for the sector as the western retailers' ongoing safety initiatives will come to an end by then, he said, adding that the initiatives saw huge investment in safety with less focus on investment for enhancing productivity, he added. BGMEA president Md Siddiqur Rahman at a recent press conference urged the government to fully withdraw source tax, applicable to sales, not to profit, to help the sector face the ongoing challenges. He said the industry was passing through a tough time after the Rana Plaza collapse and around 1,200 factories especially small and medium-sized units were closed due to various reasons. Frozen food industry insiders said $ 525 million in export earnings might not be possible unless necessary initiative is taken to increase production of shrimp and allow introducing the low-rated and small-sized vennamei. "The target for the next fiscal might not be achieved without the initiatives," an exporter said. The EPB proposed export targets of $ 15.06 billion and $ 15.50 billion respectively from knit and woven products in the next FY. It also proposed $ 1.11 billion export target with a growth projection of 9.39 per cent for jute and jute goods sector. The EPB expects the country to end the current fiscal year with $ 38.60 billion earnings -- $35.24 billion from goods and $3.36 billion from service sector. Export data for service sector, however, is not available throughout the year, even in the previous years. Bangladesh earned $34.25 billion in FY 2015-16, $31.20 billion in FY 2014-15, $ 30.18 billion in FY 2013-14 and $ 27.02 billion in FY 2012-13 through exports.

Source: Financial Express, Bangladesh

Back to top

New clothes traders face steep tax raise in bid to revive textile sector

Clothing and shoe traders could face a steep tax increase on imports in new proposals that are aimed at reviving the East African Community’s ailing textile and leather sectors. The proposals to raise taxes by up to 50 per cent are included in a report that was commissioned on the two sectors by the EAC, and whose findings were presented to the region’s heads of state last week. They seek to limit cheap imports that have undercut once vibrant local industries. “over the years, the clothing and shoe manufacturing industries have collapsed due to the emergence of informal sector trade in used clothes and shoes (UCS) and the impact of trade liberalization,” reads a policy brief on the report that was submitted to the EAC heads of state. East Africans spend an estimated Sh36.1 billion ($350 million) on second-hand clothes and shoes (mitumba) annually. While the report endorses an existing proposal to ban mitumba, it also proposes a 40 per cent tax on “readymade garments or $5 per kg whichever is cheaper”. This implies that importers of new clothes would also be affected. The report, authored by the EAC secretariat, proposes increasing the common external tariff (CET) on new shoes from 25 per cent to 50 per cent or $20 per pair (for leather shoes) and $5 per pair (for plastic shoes), whichever is higher. A three-year tax waiver for textiles inputs and shoe manufacturing equipment that are not available locally has been proposed as is a ban on the export of raw hides and skins. Kenya has already taken a U-turn on the proposals to ban mitumba despite ongoing negotiations at the EAC level on the issue. There are also fears that a mitumba ban may see EAC countries deemed illegible to retain duty-free access to the United States under African Growth Opportunity Act (Agoa).

Source: Businessdailyafrica

Back to top

Uzbekistan's Senate ratifies textiles protocol with EU

The Senate of the Oliy Majlis (upper house of the Uzbek parliament) ratified the 'textiles protocol' to the partnership and cooperation agreement (PCA) between the EU and #Uzbekistanat the plenary session, Trend's correspondent reported. The document also envisages customs privileges while processing, supplying and transit of Uzbek textile products to the EU countries.

 

The law 'On ratification of the protocol to the EU-Uzbekistan PCA and bilateral trade in textiles' in accordance with the procedures will be submitted to the country's president for signing. Up till now, the most-favoured-nation treatment as part of the PCA has not been applied to the import of textile products from Uzbekistan. There was a double licensing system when issuing permits for the import of textile products from #Uzbekistan to the EU. The European Parliament ratified the 'textile protocol' to the PCA between the EU and#Uzbekistan in December 2016 after #Uzbekistan complied with the requirement to eradicate child labor in cotton harvesting.

Source: Uzbekistan

Back to top

Delegation of Chinese wool buyers to attend Australian wool conference

Major Chinese wool buyers will attend for the first time in Australia at the Ballarat district property of leading Chinese importer and processor Tianuy wool. The conference’s theme is ‘From Farm to Fashion’ and it is a major step in building a wool bridge between Australia and China. The Chinese buyers, who have been estimated to purchase $2 bn of Australian wool each year, are among 130 delegates attending the internal wool conference. It is the first time the China Wool Industrial Association will be meeting outside China since it was formed more than 20 years ago. Conference organizers said that the delegates representing China’s 80 major wool processors will highlight their increasing demand for Australian fine Merino wool and the ability of Australian growers to supply. Victoria’s Minister for Agriculture Jaala Pulford will attend the conference and is expected to discuss the potential of the Victorian wool industry with buyers before the conference begins. The 30th annual Wool Salon of the China Wool Industrial Association will be hosted by Tianyu Wool president Mr. Qingnan Wen at his 2000 hectare property Lal Lal Estate, 20 km south east of Ballarat.

Source: YNFX.

Back to top