image rotation

MARKET WATCH 05 NOV, 2018

NATIONAL

INTERNATIONAL

How a $3 trillion Indian economy is hurting the country's textile exports

Since India has reached that GDP threshold, textile units in the country no longer enjoy the soft duties applicable to the competition in Bangladesh, Pakistan and Vietnam. The central government might consider more incentives for textile exporters, to bridge the gap between costing of products originating from the world’s least developed countries and India. The industry has given a representation. Under the global preferential treatment rules in this regard, textiles imported from countries such as Bangladesh, Pakistan and Vietnam are preferred over those from India. The earlier extension to Indian exporters of lower import duty in developed countries, including America, is no longer available. The reason is the growing size of the Indian economy — it has crossed the threshold size in this context, of $3 trillion in Gross Domestic Product. We had become the world's six largest on this measure in 2017. The total in differential duty works out to nearly nine per cent s between products from India and the other smaller economies. With all the present incentives offered by the government and the rupee's recent depreciation, the total duty differential works out to five per cent, on which the government recently announced a two per cent export incentive under the Merchandise Exports from India Scheme. The US government has complained about the INdian incentives at the World Trade Organization (WTO), as legally unsustainable. WTO has set up a committee on the issue. “We want this MEIS incentive to be doubled to at least four per cent. Given the marketing skill of ndividual exporters, India would be able to bridge the gap fully, enabling us to boost shipment. Without this increased MEIS, the industry would not be able to compete with the preferentially treated countries, including Bangladesh, Sri Lanka and Pakistan,” said Siddhartha Rajagopal, executive director, The Cotton Textile Export Promotion Council (Texprocil). He said the industry had given the government a representation in this regard. At an awards ceremony, Union textiles Minister Smriti Irani asked Texprocil to reach out to the micro, smll and medium-sized (MSME) units in the sector, about a third of the Council's membership. She wanted these businesses to know, she said, that banking institutions have been given only 59 minutes for in-principle approval to loans for small traders and organisations. Expressing joy at the 26 per cent growth of cotton textiles this year, the minister stated this sets a benchmark to double the growth next year. She noted the interest subvention on pre-shipment and post-–shipment finance for export by MSMEs had been increased from three to five per cent. Under the package, MSMEs registered under the goods and services tax will get a two per cent interest rebate on incremental loans up to Rs 10 million. A web portal has been launched through which such units may avail of loans up to this size. The segment accounts for about 45 per cent of the sector's manufacturing output and around 40 per cent of export. "The announcements have certainly come as a huge relief for the MSME sector. The majority of them being in the informal sector, they find it extremely difficult to raise funds for their business activities, as credit appraisal is a major challenge,” said Ujwal Lahoti, chairman of Texprocil.

Source: Business Standard

Back to top

Textiles ministry on two-pronged mission to upgrade Indian silk

With India aiming at becoming selfreliant in silk production by 2020, the Textiles Ministry is on a two-pronged mission to upgrade skills of handicraft artisans and improve quality of Indian textiles. Under the Integrated Scheme for Development of Silk industry, the ministry is providing automatic reeling machines that will help increase the production of high quality Bivoltine silk by up to 62 per cent by 2020. This will curtail India’s dependence on China for high-quality silk imports in the next three to four years. The government also aims to increase the number of people engaged in the silk sector from 85 lakh to one crore in the next three years and get 50,000 people trained in this sector. Textiles Minister Smriti Irani has announced setting up of an interministerial committee of related ministries under the Textiles Ministry to disburse a sum of Rs 1,000 crore for Research and Development (R & D). Nearly 97 per cent of the raw mulberry silk is produced in the five states of Karnataka, Andhra Pradesh, Tamil Nadu, West Bengal and Jammu and Kashmir. Officials see the anticipated decline in import volumes only on the back of an increase in production of the superior Bivoltine silk and are optimistic of its greater production which has seen a growth of 12-13 per cent. To cater to the increased demand for silk in the future, the Textiles Ministry will equip and strengthen seed production units, besides increasing the production capacity. Farmers engaged in seed production and seed producers will get all subsidy by Direct Benefit Transfer, official sources said. However, dwindling demand from Europe and the US, is causing some concern. India is now eyeing newer markets in Asia, Latin America and Australia-New Zealand to expand its presence there. To foster silk production, 21 cocoon testing centres are being set up in the main silk producing states of the country in addition to 19 basic silk seed farms, 20 silk worm seed production centres, 131 chawki rearing centres and 500 acres of land is being set aside for improved varieties. The Centre is hoping to pitch in with financial support to individual farmers and silk producers looking to develop infrastructure with the Central Government bearing 50 per cent of the costs. For SC or ST beneficiaries, the Centre will bear 65 per cent of the cost. In case of beneficiaries from Northeast states, Jammu and Kashmir, Himachal Pradesh, Uttarakhand, Jharkhand and Chhattisgarh, the Centre will bear 80 per cent of the cost.

Source: United News India

Back to top

US removal of trade sops to hit handloom exports

The US government move to withdraw GSP (Generalized System of Preferences) benefits to India from last Thursday will impact export of handloom made home textiles products. Among the home textiles that would face the heat include products made of silk, jute and specialised products such as wall hangings, banners and national flags. National flags predominantly manufactured and exported by SME sector account for the largest of exported item at Rs 466 crore ($64 million). Ujwal Lahoti, Chairman, Textile Export Promotion Council told Business Line that India is the single largest country in the world with the highest number of handlooms and it would be impossible to source these products in required quantity from other countries. Concessional tariff under GSP, benefits the US consumers as much as it benefits Indian exporters, he added. Handloom fabrics, floor covering and silk products are manufactured by cottage industry in rural India thereby providing employment to a large number of female workers helping in poverty alleviation and sustainable development of small clusters. Premature withdrawal of GSP benefit will cast a financial burden on both the Indian manufacturers and the US retailers, said Lahoti. Meanwhile, the interest subvention on pre- and post-shipment finance for exports by MSMEs to 5 per cent from 3 per cent and sanction of loan up to Rs 1 crore to GST-registered MSMEs would boost their confidence. Lahoti said it will provide a much needed support and encouragement to the MSME sector which contributes significantly to the textiles exports. A web portal has been launched through which MSMEs can avail of loans up to Rs 1 crore from Small Industries Development Bank, SBI, Bank of Baroda, PNB, Vijaya Bank and Indian Bank. The MSME sector accounts for about 45 per cent of manufacturing output and about 40 per cent of total exports. One of the problems for MSMEs is getting bank finances as majority of them are from informal sector and find it extremely difficult to raise funds for their business activities as credit appraisal is a major challenge, he said.

Source: The Hindu Business Line

Back to top

India to participate in China's first international import expo

India will participate in China's first international import expo in Shanghai as part of its efforts to reduce the over USD 51 billion trade deficit with the neighbouring nation, Indian officials said here on Sunday. The six-day China International Import Expo (CIIE) will be inaugurated on Monday by Chinese President Xi Jinping. Leaders of 18 countries, including Pakistan Prime Minister Imran Khan will take part in the event, which is aimed at showcasing China's import potential. An Indian delegation led by Commerce Secretary Anup Wadhawan has arrived in Shanghai to take part in the event, officials said. "India has built a pavilion at the expo highlighting its focus areas of agricultural products, pharmaceuticals, information technology and tourism," Prashant Lokhande, Counsellor Economic and Commerce of the Indian Embassy said. The Federation of Indian Export Organisations (FIEO) along with relevant government agencies has built India pavilion at the expo, which is billed as the biggest event organised by China, the world's largest exporter to showcase opportunities. Chinese official media says the the scope of imports could be over a USD trillion dollars. The expo is being held amid China's trade war with the US, which slapped additional tariffs on Chinese goods worth about USD 250 billion, demanding Beijing to bring down the trade deficit amounting to USD 375 billion. China had retaliated with counter tariffs. India too has been pressuring China to take measures to bring down over USD 51 billion annual trade deficit, which was one of the main focus areas in the informal meeting between Prime Minister Narendra Modi and Chinese President Xi Jinping at Wuhan in April this year. Since then officials of the two countries held several rounds of talks for India to export its agricultural products like sugar and rice as well as its pharmaceuticals and IT in which the country has upper hand in the global exports. The Consul General of India's Consulate in Shanghai, Anil Kumar Rai, said the expo will enable India to showcase products in the areas in which it is strong. Though the expo, which would be held till Novemebr 10, has evoked tremendous interest in global industry, diplomatic sources said China is yet to liberalise its import market. It is the world's first import-themed national-level expo that will feature enterprise and business exhibitions, country pavilions for trade and investment, the state-run China Daily reported. About 82 countries and three international organisations will set up 71 booths at the country pavilions, covering an area of about 30,000 square metres. Twelve countries - Brazil, Canada, Egypt, Germany, Hungary, Indonesia, Mexico, Pakistan, Russia, South Africa, Vietnam and the UK will be the "Guest of Honour" at the mega business event. More than 3,000 companies from over 130 countries have confirmed participation in the enterprise and business exhibitions at the expo, with a total booth area of 270,000 square metres, the report said.

Source: Economic Times

Back to top

Tirupur exporters laud Modi for MSMEs sops

The Tirupur Exporters Association (TEA) on Saturday welcomed the Prime Minister Narendra Modi announcement of outreach initiatives for micro, small and medium enterprises (MSMEs) at a time when they were struggling to compete in the global market. In a press release, president of TEA, Raja M. Shanmugham thanked the Prime Minister for the support by which not only the spirit of the MSMEs but also their confidence would increase and they could concentrate on boosting their business. Also, Mr. Shanmugham said, raising the interest subvention to five per cent from three per cent as was requested by the TEA for the past two years would create a level-playing field with the competing countries. He welcomed the stoppage of visit by inspector of factories as it would end police raj and enable the MSMEs to do business without any hassle. Mr. Shanmugham expressed hope these measures would help exports to bounce back and witness positive growth.

Source: The Hindu

Back to top

Odisha Govt approves 6 mega manufacturing proposals to diversify industrial growth

New Delhi : In the run-up to the second edition of ‘Make in Odisha’ conclave 2018 that will begin from November 11, the High Level Clearance Authority (HLCA) headed by Chief Minister Naveen Patnaik cleared six mega manufacturing proposals entailing investments to the tune of Rs 25,845 crore. The Chief Minister performed ground-breaking ceremony for 15 industrial units worth Rs 1807.92 crore through video-conferencing. He said that 15 industries for which ground-breaking was conducted will provide employment to more than 8,800 people. The state's industrial plan includes seafood as a strategic priority contributed over half of 15 investment intents. The other investment proposals are from diverse sectors including cement, plastics, infrastructure and logistics, textile and apparel and downstream metal units. On the occasion, Patnaik said that sate’s private industrial park policy has seen good response from the investors. In less than one year, the state has approved 64 projects which have created employment opportunities for more than 30,000 youths which shows Odisha as number one State in implementation of live manufacturing investments, he added. "Our focus is also to diversify the industrial growth,” said Patnaik. He further added that the maize processing plant at Nabarangpur will contribute significantly in creating new job opportunities for the people in the industrially backward district. Under the projects approved, Welspun Orissa will set up an industrial park in Bhadrak district with an investment of Rs 300 crore while Surya Foods will invest Rs 108.99 crore for a biscuit manufacturing unit in Khurdha. The HLCA cleared three proposals of Vedanta Ltd including expansion of alumina refinery at Lanjigarh with an investment of Rs 6,483 crore, aluminium smelter unit at Jharsuguda with investment of Rs 1,240 crore and production of caustic soda and chemical by-products at Bhadrak with an investment of Rs 6,500 crore.

Source: KNN India

Back to top

NIFT-TEA bags gold trophy for skill development programme

Tirupur: NIFT-TEA College of Knitwear Fashion has bagged the gold trophy awarded by the Union ministry of skill development and entrepreneurship in ‘Professional Institute for Skill Development’ category. It was awarded at a function held in New Delhi on Thursday. In the last four years, the institution had imparted skills to about 18,000 people for floor to middle-level jobs in apparel industry. “NIFT-TEA college has been a skill-development implementation centre for four union ministries including textiles, skill development and entrepreneurship, rural development and micro, small and medium enterprises. Under the Integrated Skill Development Scheme (ISDS) of the union textiles ministry and the Tamil Nadu Small Industries Development Corporation Limited (TNSIDCO), about 15,000 candidates were trained in various disciplines including sewing machine operation and quality control. We had about 200 training centres across Tamil Nadu till the closure of ISDS. Now, we have 40 centres,” head of the Centre for Apparel Training of the college KJ Sivagnanam said. “More than 3,000 candidates were trained under other schemes run by union ministries. We have placed 83% of the trained candidates in knitwear cluster in the dollar city. We could have achieved cent percentage. but it did not happen as some of the candidates were not ready to take up the jobs and professions. The centre plans to train 10,000 candidates under two schemes next year. “The college has teamed up with the National Small Industries Corporation (NSIC) as technology and knowledge partner in apparel making. With the combo, an apparel training centre has been started in Bhubaneswar. Delhi will soon get one,” Sivagnanam said. “Apart from training the candidates for employment, the college has also been working to train them for entrepreneurship. It has signed a memorandum of understanding with the state government’s Entrepreneurship Development Institute (EDI), which will guide the candidates even to get bank loans. Recently, it had started the Center for Women Empowerment in the old collectorate in Tirupur exclusively to train women.”

Source: Times of India

Back to top

Coimbatore to benefit from announcements for MSMEs

182 applications received within a few minutes of PM announcing loan scheme. Union Defence Minister Nirmala Sitharaman said here on Friday that she was confident of Coimbatore benefiting from the announcements made by Prime Minister Narendra Modi for Micro, Small, and Medium-scale Enterprises (MSMEs). As many as 182 applications were received from Coimbatore by banks for loans within a few minutes of the Prime Minister announcing the 59-minute loan approval scheme and in principle approval given for nearly ₹40 crore, she told presspersons. The Minister was in Coimbatore to take part in an outreach programme for MSMEs organised by the District Lead Bank on Friday. The Prime Minister’s announcements for MSMEs were telecast at the meeting. Similar programmes were held in 100 centres across the country. In Tamil Nadu, it was held in six centres, including Coimbatore. The MSMEs could submit their grievances and seek relief through the e-samadhan system announced by the Prime Minister on Friday. The mandatory procurement by Public Sector Undertakings from MSMEs had been increased to 25 % from 20 %. Of this, there was 3 % reservation for units run by women, she pointed out. These announcements covered all the micro, small, and medium industries. The 12 announcements made under four categories by the Prime Minister addressed the holistic needs of the MSMEs in detail, the Minister told the industries earlier. On the job working engineering units’ demand for reduction of GST, she told presspersons the representations had gone to the GST council and the decision should be taken by the council. Minister for Municipal Administration S.P. Velumani said that the State’s Finance Minister would take up the issue at the GST council again.

Source: The Hindu

Back to top

TRS deliberately ignoring Central schemes: Smriti Irani

Union Minister for Textiles and senior BJP leader Smriti Irani on Sunday accused the TRS government of deliberately not taking up some of the social welfare schemes of the Central Government like ‘Ayushman Bharat’ as caretaker Chief Minister K. Chandrasekhar Rao feared that the credit might go to Prime Minister Narendra Modi. Addressing an election meeting held at Amberpet, the constituency of party MLA G. Kishan Reddy, she said people of Telangana deserved a better deal than having a government ruled by a single family. “The true liberation of TS is when the dictatorial rule of KCR is defeated in the election to be held on December 7,” she observed, exhorting her partymen to reach out to the people seeking support for the party. Pointing out that the next month were the key to gain people’s support, Ms. Irani hailed the candidature of Mr. Reddy and claimed there was no single charge of corruption or any other illegal activity.

Assured win

TS BJP president K. Laxman affirmed that the victory of Mr. Kishan Reddy was never in doubt and he was sure people will vote for the party as it is the only credible alternative. Giving his action taken report, Mr. Kishan Reddy who was elected thrice from the constituency, claimed that 21 school buildings have been built during his tenure from three earlier, five electric sub-stations were commissioned at a cost of ₹390 crore, more than 5,000 women were provided livelihoods.  The upcoming flyover in the area will ease traffic problems, he said and charged that KCR has no right to seek votes without fulfilling the promise of constructing one lakh houses for the poor.

Source: The Hindu

Back to top

Baba Ramdev Announces 'Paridhan', Patanjali's Entry Into Readymade Garments. Over 3000 Products To Be Available As 'gift' To India Starting Dhanteras

 

Founder and face of Patanjali Ayurved Baba Ramdev has announced on Sunday the expansion of his brand into the readymade garments product-line, under the brand name 'Patanjali Paridhan'. The product line will comprise over 3000 products including coats, jeans, a range of traditional Indian wear and accessories. "The enduring wait for the launch of Patanjali Paridhan (textiles) is finally over. As we launch with products ranging from "coat to langoot" (innerwear), jeans to Indian kurta-pyjama, from saris to every attire of the Indian culture would be available. Along with that, accessories, ornamental jewellery and over 3000 products. We are launching the flagship on Dhanteras," said Ramdev.  Ramdev calls it the extension a 'gift' to India on Dhanteras, Diwali. He added, "To improve the wealth and prosperity of the nation, and to shield the country from the plundering foreign companies, Patanjali Paridhan would be a gift to the nation on Dhanteras. Aastha, Sanskar and Livefit." The brand produces products in diverse categories including- personal care, food and food products, cosmetic products, baby products, medicines treating ailments and body conditions from common cold to chronic paralysis. Ramdev's brainchild that manufactures 900 products, was reported a revenue of Rs 10,561 crore for the year ended March 31 2017, more than double the Rs 5,000 crore in the year 2016. Patanjali declared its annual turnover of the year 2016-17 to be estimated Rs. 10,216 crore. Hailed as Yoga Guru, Ramdev became the face of an ayurvedic brand, that kept the price margin lower than the competitors in the market. Earlier, Baba Ramdev had also taken a stand on the Ram Mandir issue which has taken political centre stage in the country, expressing his support for an ordinance in the matter: “Ordinance should come. Judiciary is taking its time. I am hoping that there will be some good news soon. If Supreme Court cannot gives a strong verdict, I have trust in the Parliament. If government takes initiative then no party will back from supporting it. No one should oppose it,” he had said.

Source: Republic World

Back to top

Global Textile Raw Material Price 04-11-2018

Item

Price

Unit

Fluctuation

Date

PSF

1412.59

USD/Ton

-1.72%

11/4/2018

VSF

2153.70

USD/Ton

0%

11/4/2018

ASF

3038.38

USD/Ton

0%

11/4/2018

Polyester POY

1421.29

USD/Ton

0%

11/4/2018

Nylon FDY

3379.20

USD/Ton

0%

11/4/2018

40D Spandex

4844.00

USD/Ton

0%

11/4/2018

Nylon POY

1609.83

USD/Ton

0%

11/4/2018

Acrylic Top 3D

3538.73

USD/Ton

0%

11/4/2018

Polyester FDY

5482.13

USD/Ton

0%

11/4/2018

Nylon DTY

1696.85

USD/Ton

0%

11/4/2018

Viscose Long Filament

3132.65

USD/Ton

0%

11/4/2018

Polyester DTY

3190.66

USD/Ton

0%

11/4/2018

30S Spun Rayon Yarn

2857.09

USD/Ton

0%

11/4/2018

32S Polyester Yarn

2110.19

USD/Ton

0%

11/4/2018

45S T/C Yarn

2980.37

USD/Ton

0%

11/4/2018

40S Rayon Yarn

2276.97

USD/Ton

0%

11/4/2018

T/R Yarn 65/35 32S

2538.03

USD/Ton

0%

11/4/2018

45S Polyester Yarn

3161.65

USD/Ton

0%

11/4/2018

T/C Yarn 65/35 32S

2697.56

USD/Ton

0%

11/4/2018

10S Denim Fabric

1.35

USD/Meter

0%

11/4/2018

32S Twill Fabric

0.83

USD/Meter

0%

11/4/2018

40S Combed Poplin

1.16

USD/Meter

-0.13%

11/4/2018

30S Rayon Fabric

0.66

USD/Meter

-0.22%

11/4/2018

45S T/C Fabric

0.70

USD/Meter

0%

11/4/2018

Source: Global Textiles

Note: The above prices are Chinese Price (1 CNY = 0.14503 USD dtd. 04/11/2018). The prices given above are as quoted from Global Textiles.com.  SRTEPC is not responsible for the correctness of the same.

Back to top

Continuing dispute over tariffs will hit global economy

SINGAPORE - On Thursday last week, President Trump hinted he was close to agreeing a trade deal with China after a phone call with President Xi. On Friday, Bloomberg reported unnamed sources in the White House saying the President had asked key officials to start work on a draft of a potential trade agreement with China.

Stock markets were on the up and up.

This optimism did not last. Later the same day, White House economic adviser Larry Kudlow dampened expectations of a quick deal in a CNBC interview. The US stock market reacted negatively and ended a run of three consecutive days of gains. The goal of forcing trade talks with China through tariffs is to reduce the trade deficit with China and establish fairer trading terms for US companies. However, the US government's other aim of bringing some manufacturing home may not be realistic. The reality is that production and distribution supply chains of products and their components are so integrally linked, it is more likely companies will find countries in Asia overall less costly to shift production to. As the US trade dispute with China gained momentum earlier this year, analysts were putting forth suggestions about which countries would benefit most. Countries like Taiwan, Thailand and Malaysia are luring more electronics and computer companies to their shores. Cambodia, Philippines and Bangladesh are seeking more opportunities to increase their market share in the production of apparel and footwear. Likewise, Thailand and Vietnam for household consumer goods like washing machines and refrigerators. Indeed, in a study by American Chamber of Commerce South China (AmCham South China) published on October 29, where 219 companies were surveyed on the impact of US and China tariffs, less than one percent indicate any plans to relocate manufacturing to North America. In September, a joint study of 430 firms by AmCham China and AmCham Shanghai, found only 6 percent of respondents saying they may consider relocating production to the US. The same report mentions that Southeast Asia and the Indian Subcontinent were the destination of choice should relocation occur. There are however some limitations to how much production can be moved out of China. Through years of establishing China as "the world's factory", it has nurtured a highly trained, skilled and disciplined workforce.The infrastructure, roads, ports and integrated logistical support is second to none in terms of its ability to handle the volume of goods produced. This makes China an efficient and effective production centre. Furthermore, China's workforce is more than double that of all Southeast Asia combined. So, even if there are cost benefits of moving production out of China, there simply isn't enough capacity elsewhere to take over what China can produce. A study by India's Department of Commerce identified about 100 products where India can replace US exports to China due to higher import tariffs imposed by China on US farm products. These include corn, grain sorghum, oranges, cotton, almonds and durum wheat. Another report by the Confederation of Indian Industry (CII) concluded that with concerted effort, India can increase its exports of products like pumps, parts of taps, parts for the defence and aerospace industry, vehicles, automobile parts and engineering goods among others. India if it plays its cards right, might even be a major part of the re-shaped global supply chain.

At the moment, this is still an aspiration.

Recently released data including the Purchasing Managers Index (PMI) by various Asian countries and trade deficits numberscould suggest which countries could be benefiting from the US-China trade dispute at the moment. The Singapore Institute of Purchasing and Materials Management (SIPMM) published its monthly Purchasing Managers Index (PMI) for October on Friday. It declined by 0.5 points from 51.9 in September and came in below the 52.2 forecast of economists polled by Bloomberg. A reading above 50 indicates that the factory activity is generally expanding and below 50 that the activity is contracting. Similar manufacturing PMIs published by neighbouring countries show similarly dismal numbers. Indonesia PMI last month was down to 50.5 from 50.7 the previous month, Malaysia's was lower at 49.2 compared with 51.5 a month earlier, Taiwan, 48.7 from 50.8, Thailand 48.9 from 50, Hong Kong 47.9 from 48.5, South Korea 51.0 from 51.3. China saw a minute increase from 50.0 the prior month to 50.1 last month and in the Philippines the same 0.1 point increase to 52.0. While India gained 0.9 points from a month ago to 53.1, Vietnam saw the largest gain among major Asian economies reaching 53.9 from 51.3 in the previous month. This is not surprising considering Vietnam has been consistently identified by certain US companies as the preferred location in Southeast Asia should they relocate production from China. Contrary to what the US hopes to achieve, the trade war it initiated with China saw its trade deficit with China widen by 1.3 percent in September to a seven-month high. If anything, these figures indicate that in general no one gains from increased protectionism. Overall global economic growth will shrink to the detriment of all. The pain for China manufacturers will spread to its partners, for example, in South Korea and Taiwan for chips to textile suppliers in Myanmar. The trade war is expected to have a negative impact not only in the US and China but also on various industries, companies and countries. (ANI)

Source: Big News Network

Back to top

US-China trade war also boosted export earnings

The US is the single largest importer of clothing products and China is the largest exporters of apparel goods in the world. The trade war between these two giants has brought more number of orders for Bangladeshi denim manufacturers.    Abdus Salam Murshedy, Md of Envoy Textiles Ltd (a LEED Platinum certified green factory in the world) said: “Chinese products are becoming costlier due to rise in workers’ wage. As trade war between China and US is a threat for the US  importers over duty imposition. Bangladesh is benefitting the most from this trade conflict.” “While China is shutting down factories due to rise in pollution So, ultimately these workorders will go to Bangladesh, Vietnam or Cambodia.” Former finance adviser to the Caretaker Government AB Mirza Azizul Islam said: “The US-China trade war is definitely a plus point for Bangladesh. To grab the US and EU market, Bangladesh has to move to reduce the lead time and improve port efficiency. “The manufacturers should also improve the quality and concentrate on product diversification and value added products.” According to Bangladesh Textile Mill Association (BTMA), Bangladesh currently has 31 denim fabric manufacturing factories, which produce over 400.40 million metres of fabrics every year. And there are around 400 denim product manufacturers in the country. According to people involved in this sector, Bangladesh has already made an investment of Tk15,000 crore in denim fabrics manufacturing.    The major global retailers in the world to which Bangladeshi entrepreneurs supply denim products are  H&M, Uniqlo, Tesco, Walmart, Levi's, Diesel, Wrangler, G-Star, s.Oliver, Hugo Boss, and Gap. In 2107, Bangladesh was the largest exporter of denim products to EU markets with 27% market share, while the third largest exporter to US with 14.20%.

Source : Dhaka Tribune

Back to top

Sri Lanka apparel exports up 9.2-pct in Sept driven by US

Sri Lanka's apparel exports have grown 9.2 percent to 451 million US dollars, in September with exports to America up 16.23 percent to 222 million US dollar, an industry body said. Exports to the EU were marginally down by 0.57 percent to 173 million US dollars. Exports to other markets were up 16.67 percent to 56 million US dollars. Total exports up to September were up 5.04 percent to 3,732 million US dollars, with exports to the US up 5.85 percent to 1,664 million US dollars. Exports to the EU were up 4.43 percent to 1,578 million US dollars. Exports to the EU which peaked at 1,626 million US dollars up to September in 2014 fell to 1,473 million US dollars in 2015 amid a withdrawal of GSP+ duty free access and has since recovered. Amid a political crisis in Sri Lanka, the EU envoy has warned that if Sri Lanka sees a return to human rights violations, GSP concessions could be withdrawn. Exports to other destinations were up 4.26 percent to 490 million US dollars.

Source: Economy Next

Back to top

Vietnam garment exports surge on US-China trade war

Vietnam’s garment exports are set to rise by 14.8 percent this year to $35 billion, an industry official said on Friday. The expected growth is attributed to the fact that U.S. retailers diversify their product sourcing to keep costs under control amid an escalating trade dispute with China. The U.S. has already imposed tariffs on $250 billion worth of Chinese goods, and China has responded with retaliatory duties on $110 billion worth of U.S. goods. Garments, Vietnam’s second largest export-earner after smartphones, are not yet subject to U.S. tariffs, although some manufacturers have sought to move at least some production to the Southeast Asian country, anticipating potential penalties. “We are seeing more and more orders coming in, especially from the United States,” Vu Duc Giang, chairman of Vietnam Textile & Apparel Association, told Reuters. Garment exports to the U.S. rose 12 percent in the January-October period to $10.5 billion, while exports to China surged 40 percent to $1.1 billion, according to a government statement released on Thursday. Ngo Quang Thoa, chairman of Swimax International Joint Stock Co, a contractor which produces swimwear and underwear products for U.S. companies such as Target and Express, said he had received a large increase in orders from the U.S. since January. “This is because of the trade war between the U.S. and China,” said Thoa, who added that he expected to see his exports to the U.S. increase by up to 20 percent by the end of the year. “Some U.S. clients are already making strategic adjustments to their business plans to diversify their supplies, even though Trump hasn’t targeted Chinese garments in the tariff war yet,” he said. Vietnam is home to over 6,000 textile and garment factories which employ around three million people, Thursday’s government statement said. Giang, chairman of Vietnam Textile & Apparel Association, told Reuters those figures were likely to grow, thanks to a plethora of Vietnamese free-trade agreements, and not just because of the U.S.-China trade spat. Vietnam has signed around a dozen free-trade agreements that will remove or reduce taxes on several imports and exports. Foreign investors poured in $2 billion in Vietnam’s garment and textile production in the first eight months of this year, Giang said. Most investors were from Japan, South Korea, Taiwan and China, he added. “They have been upping their investment in Vietnam for years,” said Giang.

Source: Retail News

Back to top

Bangladesh: Apparel exports to US rise 6pc

Garment exports to the US rose by 5.83 percent year-on-year to $4.17 billion in the nine months to September thanks to the increasing Christmas spending by the Americans and the ongoing US-China trade war. The North American clothing retailers and brands have been placing more work orders after gaining confidence from the near complete factory safety inspection and remediation run by the Accord and Alliance, exporters said. US consumers will spend an average of $1,007.24 during the holiday season this year, up 4.1 percent from $967.13 they spent last year, according to an annual survey by the National Retail Federation and Prosper Insights & Analytics. Based in Washington, the National Retail Federation (NRF) is the world's largest retail trade association. The growth of garment export to the US indicates that Bangladesh is becoming a lucrative destination for the American retailers and brands following the US-China trade war, as predicted by analysts earlier. “The holidays are just around the corner and consumers are ready to shop,” NRF President and CEO Matthew Shay said. “Confidence is near an all-time high, unemployment is the lowest we've seen in decades and take-home wages are up. All of that is reflected in consumers' buying plans,” Shay said in a NRF statement recently. “Retailers expect strong demand this year, and are prepared with a wide array of merchandise while offering strong deals and promotions during the busiest and most competitive shopping season of the year.” Tariffs on a wide range of consumer goods from China came into effect last month but Shay noted that retailers had imported record volumes of merchandise in advance this summer. “The effect on pricing during the holiday season is expected to be minimal.” The consumer survey comes on top of the NRF's annual holiday spending forecast, which takes into account a variety of economic factors to project overall spending rather than per-consumer spending. The forecast estimated that holiday retail sales in November and December will be up between 4.3 percent and 4.8 percent over 2017 for a total between $717.45 billion and $720.89 billion. Consumers will spend in three main categories during the holidays – gifts, at $637.67; non-gift holiday items such as food, decorations, flowers and greeting cards, at $215.04; and other non-gift purchases that take advantage of the deals and promotions throughout the season, at $154.53, according to the NRF statement. The overall export to the US also increased during this time. In January-September period, overall export to the US increased by 6.34 percent year-on-year to $4.69 billion, according to data from the US Census Bureau. “We are expecting 10-15 percent growth in garment export to the US as the economy is rebounding there. Some 5 to 6 percent apparel export growth to the US is a normal growth,” said Siddiqur Rahman, president of the Bangladesh Garment Manufacturers and Exporters Association. Rahman said Bangladesh has been sending garment items facing 15.62 percent duty whereas the duty for other garment exporting nations was relatively low. “Still, we are competitive in the US markets,” said Rahman. For many years, the US was the single largest garment export destination for the country, but last year Germany became the number one destination. However, if the export growth of the garment items continues at this pace, there is a chance of the US again becoming the largest apparel export destination for Bangladesh, Rahman said.

Source: The Daily Star

Back to top

Markets in the US, EU: Bangladesh’s denim exports see healthy growth, beating China

Bangladesh denim products include Blue Denim Trousers WG, Blue Denim Trousers MB, Blue Denim Skirts, Blue Denim Jackets, Blue Denim Suit Type Coats MB, Playsuits and Sun suits Syed Zakir Hossain/ Dhaka Tribune. According to statistics from the Directorate-General of the European Commission,  Eurostat, Bangladesh has earned €917.14 million from exporting denim products to EU countries during January-August period of 2018, which is 4.23% higher from exports earned in the corresponding period of last year. Bangladesh’s denim manufacturers have seen a healthy rise in export of denim products in the markets of the US and European Union (EU), beating its biggest competitor China as the world’s second largest economy posted only a moderate growth. From January to August of 2018 Bangladesh’s denim export saw steady growth both in US and the EU markets. The EU consists of 28 countries and is the largest destination for Bangladesh’s denim goods.

Denim exports in the US during 2018

According to the US Office of Textiles and Apparel (OTEXA), from January-September period of 2018 the country saw a 14.20% rise in export earning i.e. $419.21 million, which was $367.10 million during the same period of 2017.  China on the other hand earned 1.3% more than 2017 summing up a $683 million export earnings, while Mexico has seen 1.08% increase in export from 2017 to $595.40 million.   Vietnam, a close competitor of Bangladesh in US market earned 41.95% more i.e. $205.43 million which was $144.72 million during 2017. While Cambodia saw a 30.85% rise in export to $88.34 million.

Exports in EU countries during 2018

According to statistics from the Directorate-General of the European Commission,  Eurostat, Bangladesh has earned €917.14 million from exporting denim products to EU countries during January-August period of 2018, which is 4.23% higher from exports earned in the corresponding period of last year. Turkey, the second largest exporter of denim goods to EU has seen an 11% deficit in earning to €687.28 million, which was €772.93 million in 2017. Pakistan saw a 4.83% rise to €500.56 million, while China’s exports saw a 14.30% fall to €304.79 million, which was €355.68 million in the same period of 2017.Bangladesh denim products include Blue Denim Trousers WG, Blue Denim Trousers MB, Blue Denim Skirts, Blue Denim Jackets, Blue Denim Suit Type Coats MB, Playsuits and Sun suits.

Reasons for Bangladesh’s steady growth

Trade analysts and the people involved in the denim industry said the reasons for Bangladesh’s steady growth in exports earnings are because of improved technology in fabrics manufacturing, improvement of safety standards in the apparel sector and the trade war between China and the US. Anwar-Ul Alam Chowdhury, managing director of Argon Denims, while speaking to the Dhaka Tribune said: “After the announcement of Trans-Pacific Partnership (TPP), US retailers wanted to go to different manufacturers for sourcing apparel goods, rather than Bangladesh. But they changed their decision after US president Donald Trump dismissed the idea of joining the TPP.” “On the other hand, China is shifting their business due to environmental hazards, especially in washing and dyeing. Bangladesh has taken this advantage in the EU and US markets, as it has the capacity to fulfill their demands. “There is no such unified, safe and secure sector in the world other than Bangladesh. That is why, Alliance for Bangladesh Workers, a platform of American buyers has certified Bangladesh as a safe place, which also boosted buyers’ confidence for sourcing products from here,” Anwar added. Shahidul Hasan, director of Amber Denim Limited said: “Buyers go to different places because of competitive price rates. US retailers are the ones who sought more price competitive market. Since, we have quality products at a reasonable price; they are sourcing from here,” BGMEA Senior Vice President Faruque Hassan said: “In the EU markets, Bangladeshi denim products are doing much better for its quality and competitive price rates. In the recent time, production cost in China and other countries have gone up due to wage hike. As a result, EU manufacturers are moving to Bangladesh for sourcing denim products. “On the other hand, Bangladesh has increased its production capacity in doth denim fabrics manufacturing and other denim products. The Bangladeshi manufacturers have also moved to introduce latest technologies for improved quality of products.” Md Badsha Mia, managing director of Pioneer Denim Limited said: “Bangladesh is very strong in knitwear manufacturing due to its strong backward linkage industries. At the same time, it is highly dependent on import of woven fabrics. “In recent times, Bangladesh has seen the establishment of state of the art denim fabrics manufacturing plants, which has increased production capacity. This has helped to attract more workorders from the US buyers, as well as EU, as a result, the manufacturers can supply the orders within much shorter time compared to previous ones.” 

Source: Dhaka Tribune

Back to top

$28 million gift aims to make NC State a leader in the resurgent textile industry

N.C. State University will rename its textile college following a $28 million donation, the largest in the program’s 119-year history. On Friday, Chancellor Randy Woodson announced that the college will now be called the Wilson College of Textiles, in honor of the family of alumnus Frederick Eugene Wilson Jr., a business owner from High Point. The gift from the Wilsons will be invested in an endowment to provide ongoing support for faculty, research and facilities for the only textile college remaining in the United States, according to the university. Fred Wilson is is chairman of the board of his family-owned business, Piedmont Chemical Industries, Inc., based in High Point. The company historically made textile chemicals that used yarn and fabric. The business was started in 1938 by Wilson’s father when the textile business was thriving in North Carolina. Wilson said it is time to invest in textiles, which are emerging again in the United States after a long period of decline, including mill closures and an exodus for cheaper labor in Asian countries. It will be important to prepare students for jobs in high-tech textile work, he said. “We feel it’s right because several of N.C. State’s competitors — Georgia Tech, Clemson, Auburn — they have more or less fallen back in the textile business. They have not really pushed that, and we think it’s time to take a strong stance,” Wilson said in an interview. “It’s economic, as well as a long-term position.” When the U.S. industry was hammered by globalization, Wilson said his business adapted with products such as carpet, cosmetic, personal care and other products. “We were trying to scope wherever our equipment and our marketing could take us and make sense,” he said. Now, Wilson believes, the textile industry “will be getting stronger rather than weaker.” Woodson, in a news release from the university, said the Wilson donation will ensure that N.C. State’s textile college will be a leader and innovator for years to come. In recent years the college has turned its research to new directions such as fiber chemistry and digital printing. “Textiles has been an important part of our university’s story, and North Carolina’s economy, for more than a century,” Woodson said in a prepared statement. “As the industry has changed, NC State has been able to change along with it — to purposefully adapt, to innovate and to keep pushing forward. Our faculty has built expertise in a wide range of textile applications and specialties. The Wilson family’s gift will empower us to prepare students for success in a resurgent textile industry, inspire investment through key partnerships and initiatives, and make a real difference for our state and beyond.” The family has generational ties to N.C. State and the textile college. Wilson’s son, Frederick “Rick” Eugene Wilson III, is a 1987 graduate and his daughter, Elizabeth “Cres” Wilson Calabrese, is a 1989 graduate. His grandson, Frederick “Rede” Wilson IV, earned a degree in polymer and color chemistry two years ago. The Wilson College of Textiles is only the second at NCSU to be renamed following a large endowment gift. The first was the Poole College of Management, after Lonnie and Carol Poole gave the college $37 million in 2010. Lonnie Poole, a 1959 engineering graduate, founded Waste Industries USA.

Source: News Observer

Back to top

Zimmer Austria presents Colaris printer at SGIA expo

Zimmer Austria, leading textile machinery manufacturer, displayed the new Colaris.12-2200 small production printer during the Specialty Graphic Imaging Association (SGIA) expo. The expo for professionals in the industrial, graphic, garment, textile, electronics, packaging, and commercial printing communities, was held from October 18-20, 2018, in Las Vegas. The company’s small production digital inkjet printer Colaris.12-2200 ran continuously with pigment inks for the three days of the show. The printer has been met with great interest from the crowd, Zimmer said in a press release. The Colaris.12-2200 is also suitable for acid, disperse, reactive and VAT inks. Zimmer offers a wide range of pre- and post-processing systems and equipment like steamer, washer, hot air dryer, and infrared fixation. With the new pigment printing solution, Zimmer completes the portfolio of its available ink classes. With pigment inks, very good light fastness, even in the home textiles market, for example, for curtains, or decorative articles are achieved. At the same time, outdoor applications are possible, from sun protection to tarpaulins. With the pigment inks (4 or 6 colours) on the Colaris, reliable printing results with brilliant colours, as well as excellent light, friction and wash resistance are delivered. To cover all application areas and all ink classes, Zimmer uses various circulating inkjet print heads from the Fujifilm Dimatix StarFire SG1024 family for its Colaris range. This is particularly important for the pigment, disperse or VAT ink classes to ensure reliable production operation. The Colaris models range from compact sample machines up to a 4.2 metres (14 feet) wide system. All models are available in a variety of configurations between four and twelve colours, with a choice between reactive, acid, disperse, pigment or VAT inks. Maintenance is easy and print heads are repairable. The Magnoroll multipurpose coating machine is the perfect addition for pre- and post-processing to complete the Colaris pigment printing system. Magnoroll is equipped with various modules for universal applications, for example, with Magnoroll magnetic low-add-on system, direct roll coating, screen coating with magnet roll rods or magnet blade squeegee, knife coating. (GK)

Source: Fibre2fashion

Back to top

World’s largest silk producer to set up base in Kenya

The world’s largest silk producer Guangdong Silk-Tex Group has announced its plans to set up shop in Kenya. Top officials of the government owned company met President Uhuru Kenyatta in Shanghai, China, today during which they confirmed plans to set up business in Nairobi. Officials of the company were led by their Chairman Ke Huiqi. The company will not only setup a silk processing factory at the Export Processing Zone in Athi River but will also establish a silk farm. The Guangdong Silk-Tex Group will establish a cocoon farm on an estimated 8,237 acres of land with capacity to handle the entire silk value chain covering cocoon procurement, silk reeling, weaving and trading. The venture is expected to create over 300,000 jobs for Kenyans. In another sitting, President Kenyatta met officials of Cherami China-Africa Investment Management, a firm that plans to construct a cancer treatment centre in Kenya, in partnership with the University of Nairobi. The proposed cancer treatment and referral centre is envisioned to become the largest such facility in Sub-Saharan Africa and will be constructed next to the University of Nairobi's Dental School. The joint venture will include exchange programmes with leading Chinese universities as well as capacity building for Kenyan cancer experts. The partnership will also include other Kenyan universities as well as explore opportunities in agricultural value addition. The Kenyan delegation to the meeting included University of Nairobi VC Prof Peter Mbithi while officials of Cherami were led by its Director Chen Ruibing and CEO Wei Xiaolin. Earlier, President Kenyatta and President Xi held bilateral talks at the Xijiao State Guest Hotel in Shanghai during which they discussed measures to strengthen trade and investment ties between Kenya and China. At the meeting, President Kenyatta, who is one of the Chief Guests at the China International Import Expo, said the trade fair provides a platform for more win-win partnerships. On his part, the Chinese leader gave a firm assurance that China will take proactive measures to correct the trade imbalance between Kenya and China. In a day full of meetings, President Kenyatta also held talks with Chinese investors eyeing opportunities at the Lamu Port. China is hosting the first ever import expo that is attended by hundreds of companies and participants from over 130 countries among them Kenyan horticultural farmers and traders. China is using the Expo to showcase its willingness to open up its huge market to other countries. President Kenyatta will also use the opportunity presented by the Expo explore additional markets for Kenya’s commodities especially agricultural produce. Tomorrow, President Kenyatta is scheduled to deliver a keynote address at the official opening of the expo. Cabinet Secretaries Peter Munya (Trade and Industry), James Macharia (Transport and Infrastructure), and Monica Juma (Foreign Affairs) are among part of the President's delegation to the Expo. Others are Principal Secretaries Chris Kiptoo and Betty Maina.

Source: The Star

Back to top

Indorama Ventures Expands Presence In Brazil With Entry Into Fiber Market

Indorama Ventures Public Company Limited (IVL), a global chemical producer, has announced that it has entered into an agreement to acquire M&G Fibras Brasil, in Cabo de Santo Agostinho, Brazil. The Cabo plant manufactures and supplies Polyester Staple Fiber, with total polymerization capacity of 75,000 tonnes/annum. The transaction is expected to be completed in the fourth quarter 2018, subject to regulatory approvals. This acquisition fills an important gap in IVL’s global footprint in fibers by establishing capacity in South America’s largest economy, Brazil. It also offers IVL an opportunity to participate in the domestic market along with strategic and logistic advantages from established free trade agreements with other Latin America countries. The demand in Brazil is expected to grow in response to a recent recovery in consumption. The plant is in close proximity to Indorama Ventures’ PET site and also the third party PTA site in Brazil. Further synergies will be realized by using a jointly located Sao Paolo commercial office. Having a local manufacturing base, IVL is also in an advantageous position to expand more into nonwoven applications which are growing strongly in Brazil, supported by the presence of global brands. As a world leader in the service of the hygiene sector, the presence of global brands will allow IVL to offer its customers an extensive portfolio of products to serve their needs. Brazil has a very innovative textile industry and its relatively high consumer purchasing power is driving the growth in nonwoven and filling fibers. IVL’s strategy is to continue to serve the growing needs of the existing customers of M&G as well as the needs of IVL’s global branded customers in this fast-growing economy and stay ahead of the curve in introducing quality products. Commenting on the acquisition, Mr. Aloke Lohia, Group CEO of Indorama Ventures, said, “Brazil, with its large spinning industry is a natural place for the textile industry to enjoy long-term growth due to its location and large population. We intend to support the local spinning industry with a commitment to supply high-quality fibers to blend with cotton and reduce dependence on imports. In addition, IVL will also be able to support the local non-woven manufacturing industry by supplying specialized fibers produced with the know-how from our global manufacturing businesses. We look forward to the continued support of the Government of Brazil in developing a robust and self-reliant textile sector.”

Source: Textile World

Back to top

 

Subscribe to SRTEPC mailing list

Exchange Rates