The United Nations Conference on Trade and Development (UNCTAD) on Monday said that India was among the top 10 recipients of Foreign Direct Investment (FDI) in 2019, attracting $49 billion in inflows, a 16% increase from the previous year, driving the FDI growth in South Asia. The majority went into services industries, including information technology. UNCTAD, in its Global Investment Trend Monitor report said that the global foreign direct investment remained flat in 2019 at $1.39 trillion, a 1% decline from a revised $1.41 trillion in 2018. “South Asia recorded a 10% increase in FDI to $60 billion. The growth was driven by India, with a 16% increase in inflows to an estimated $49 billion. The majority went into services industries, including information technology,” it said. Inflows into Bangladesh and Pakistan declined by 6% and 20%, respectively, to $3.4 billion and $1.9 billion. “This is against the backdrop of weaker macroeconomic performance and policy uncertainty for investors, including trade tensions,” it said. According to the report, flows of FDI to developing economies remained unchanged at an estimated $695 billion. It also showed that FDI rose 16% in Latin America and the Caribbean and 3% in Africa. As per the multilateral agency, FDI flows to developed countries remained at a historically low level, decreasing by a further 6% per cent to an estimated $643 billion. FDI to the European Union fell 15% to $305 billion while flows to the United States-the largest recipient of FDI- remained stable at $251 billion. China, the second largest recipient, saw zero-growth in FDI inflows. Its FDI inflows in 2018 were $139 billion and $140 billion in 2019. The FDI in the UK was down 6% as Brexit unfolded. Slow M&A activity The report showed that cross-border M&As declined 40% in 2019 to $490 billion – the lowest level since 2014. The fall in global cross-border M&As sales was deepest in the services sector which declined 56% to $207 billion, followed by a 19% fall in manufacturing to $249 billion and a 14% decrease in primary sector to $34 billion. The decline in M&A values was driven also by a lower number of mega deals. In 2019, there were 30 mega deals above $5 billion compared to 39 in 2018. Future bright Going ahead, UNCTAD expects FDI flows to rise moderately in 2020, as current projections show the global economy to improve somewhat from its weakest performance since the global financial crisis in 2009. It said that GDP growth, gross fixed capital formation and trade are projected to rise, both at the global level and, especially, in several large emerging markets. Such an improvement in macroeconomic conditions could prompt MNEs to resume investments in productive assets, given also their easy access to cheap money, the fact that corporate profits are expected to remain solid in 2020, and hopes for waning trade tensions between the United States and China, it said. However, it highlighted that significant risks persist, including high debt accumulation among emerging and developing economies, geopolitical risks and concerns about a further shift towards protectionist policies.
Source: Economic Times
The International Monetary Fund has slashed its estimate on India’s 2019 economic growth to 4.8% from the 6.1% expansion it projected in October, citing a sharper-thanexpected slowdown in local demand and stress in the non-bank financial sector. The steep cut in India’s growth rate has weighed on IMF’s projection on the world economy, which it now expects to have expanded 2.9% in 2019 compared with the previous forecast of 3.0%. The IMF’s World Economic Outlook (WEO) Update revised India’s 2020 growth forecast to 5.8%, down 0.9 percentage point from the previous estimate. For 2021, the estimate is 6.5%.The markdown has been the highest for India in the latest WEO projections. The report cited monetary and fiscal stimulus, along with its expectation of subdued oil prices, for the projected improvement in India’s growth this year and the next. Globally, growth is expected to accelerate to 3.3% in 2020 from 2.9% in 2019 and further to 3.4% in 2021. The IMF has trimmed its estimate on the world economy by 0.1 point each for 2019 and 2020 and by 0.2 percentage point for 2021 from the earlier forecasts. The WEO estimates China to have grown 6.1% in 2019. For the current year, the forecast is for 6% growth. “A more subdued growth forecast for India accounts for the lion’s share of the downward revisions,” the IMF said. IMF’s chief economist, Gita Gopinath, had in December said India’s growth forecast was likely to be revised down “significantly” in the upcoming January review. Other agencies have also slashed the growth forecast for India. Last week, the United Nations cut India’s FY20 growth forecast to 5% from 5.7, in line with the estimate of the government’s statistics office. The World Bank too has cut its estimate to 5% from the previous forecast of 6%. “In the third quarter of 2019, growth across emerging market economies (including India, Mexico, and South Africa) was weaker than expected at the time of the October WEO, largely due to country-specific shocks weighing on domestic demand,” the IMF said. On the upside, the effects of monetary easing and improved sentiment resulting from phase one of the US-China trade deal are likely to improve prospects of a global recovery. However, downside risks like rising US-Iran tensions could disrupt oil supply and weaken investment, said the report. For the emerging markets, the report cautioned that improvement from reform efforts could fail to materialise in the face of intensifying social unrest that reflect the erosion of trust in established institutions and lack of representation in governance structures. In terms of policy, the report suggested governments to enhance inclusiveness and build governance structures that strengthen social cohesion and ensure adequate safety nets to protect the vulnerable The government has over the past few months taken several steps to lift growth, including a cut in corporate tax rates, a real estate fund for stressed housing projects and a national infrastructure pipeline. It is expected to announce another set of measures to arrest the slowdown in the upcoming budget, to be presented on February 1.
Source: Economic Times
But confidence in global economic growth reached lowest levels since 2008 financial crash. As confidence in the global economy reaches a 10-year low, India has managed to retain the position of the fourth-most attractive market, shows a survey of Chief Executive Officers (CEOs) from across the world by consultancy giant PwC. Released on Monday, the 23rd Pwc CEO Survey showed that as many as 53 per cent of global CEOs believe international economic growth would decline in the next 12 months. The findings are the worst since the financial crash of 2007-08, with only 29 per cent of CEOs expressing pessimism in the global economy in the 2019 survey. In the year before, only 5 per cent of CEOs believed growth would dip.
However, 9 per cent of CEOs believe India remains among the most important regions for the growth of their organisations. The level of importance attached to India by global corporate leaders has hovered around the same levels for the past three years. While the 2019 survey showed 8 per cent of CEOs favoured the country, the figure was 9 per cent in the year ago. Released on the first day of the World Economic Forum annual meeting, the report surveyed more than 1,580 CEOs in 83 countries. It noted that despite a protracted and costly trade war with the US, China has regained popularity among business leaders, remaining the second-most attractive region. Both countries saw their attractiveness rise after falling sharply in 2019. Indian corporate leaders had an equally bleak outlook on the global scenario, with 52 per cent of those surveyed saying growth would decline, up from only 27 per cent a year ago. More than half of the 63 CEOs interviewed by PwC in India attributed their pessimism to uncertain economic growth. India’s gross domestic product growth in 2019-20 is expected at 5 per cent, compared to 6.8 per cent in year-ago period, according to the first Advance Estimates released by the statistics ministry earlier this month. This was mostly due to a slowdown in the manufacturing sector, which is expected to grow 2 per cent in the current financial year, down from 6.9 per cent in the previous year. Hinting that the decline in manufacturing growth may not be a simple cyclical issue of demand and supply, the PwC report pointed out that 40 per cent of Indian CEOs are seriously concerned about the speed of technological change. Successive Economic Surveys have pointed out that India may miss the bus on new-age manufacturing if sustained innovation is not brought in immediately. But the government’s cornerstone policy to initiate reforms — the new industrial policy that plans to promote robotics, artificial intelligence and new technologies like 3D printing — has missed several deadlines. Policy uncertainty was the third-biggest fear among India Inc, with 38 per cent of surveyed individuals seriously concerned with overregulation. Trade protectionism in both domestic and global market stood just after that at 37 per cent. The government had raised import duties more than 8x since 2018, placing restrictions on thousands of items. Now, the commerce department plans to bring in restrictions for ‘other’ category of imports, effectively unknown imports that plan $127 billion worth of inbound trade. Imports have fallen 7x in 2019-20. Thirty-five per cent of Indian CEOs claimed cyberthreats were a serious concern. A similar percentage of Indian business leaders said the government was failing to design privacy regulations that increase consumer trust as well as maintain business competitiveness. India trailed most other major economies in embracing climate change opportunities, with only 17 per cent of CEOs believing that climate change will lead to significant new product and service. In contrast, 47 per cent of Chinese CEOs agreed to the idea. On the other hand, only 11 per cent of India CEOs believe their organisation has made ‘significant progress’ in establishing an upskilling programme that develops a mix of soft, technical, and digital skills.
Source: Business Standard
The Apparel Export Promotion Council (AEPC) has requested the government to review the retrospective withdrawal of Merchandise Exports from India Scheme (MEIS), and reinstatement of the MEIS benefits up to March 31, 2020. Rebate of State and Central Taxes and Levies (RoSCTL) announced on March 7, 2019 was in addition to the MEIS benefits, AEPC said. “The requested review of the retrospective withdrawal of the benefits will go a long way in ensuring the much needed growth of this sector and resultant creation of additional investment and employment, thereby fulfilling the dream of Prime Minister's vision in making India a $5 trillion economy,” AEPC chairman Dr A Sakthivel said in a press release. Sakthivel also thanked the finance, commerce and textile ministers for announcing RoSCTL and other additional ad-hoc incentives to the apparel industry up to 1 per cent of the FOB value on January 14, 2020. “RoSCTL was announced w.e.f. March 7, 2019 and which was to be in addition to the MEIS benefits available to the Industry at the rate of 4% (2%+2%),” said AEPC chairman in a letter to the Government. Sharing the background of the schemes, Sakthivel said that the industry had been given RoSCTL and MEIS simultaneously as each scheme had a specific purpose—MEIS for infrastructural / logistics cost disadvantage and RoSL / RoSCTL for embedded state and central duties and taxes, not refunded through GST. In fact, RoSCTL scheme was a result of recommendations of the government appointed Drawback Committee to study and recommend suitable rates for refund of hidden and embedded taxes. The industry has already taken these benefits of RoSCTL and MEIS into account in costing with the buyers as also in their tax-planning. Hence, withdrawal of any of these benefits will have an immense effect on their working capital. For the majority in the MSME sector, it will impact the capacity to pay wages and salaries of workers and employers, the letter said. The apparel industry has shown consistent growth over the last few decades and apparel exports had reached $16.2 billion in the last financial year. The sector provides employment to 12.9 million, in which women contribute with 65-70 per cent of the total workforce. This industry is the largest manufacturing sector employer, and is a flag-bearer of the 'Beti Bachao, Beti Padaho' programme. Therefore, we humbly request the government to kindly reinstate the benefits of MEIS up to March 31, 2020," said Dr Sakthivel.
Source: Fibre2Fashion
The government had severely cut down on expenditure in this area, with the 2019-20 (FY20) Budget providing Rs 909 crore, down from the RE of Rs 1,707 crore in the earlier one. A year after its Budget allocation was slashed, the Department for Promotion of Industry and Internal Trade (DPIIT) has argued for bigger funds in the upcoming Union Budget as it plans to boost industrial development in backward areas. The department got Rs 5,674.51 crore for 2019-20, from the Revised Estimate (RE) of Rs 6,140.23 crore in 2018-19. Allocations have been volatile over the past five years, rising or falling almost every alternate year. But after focusing on issues like e-commerce, retail, and initiatives like the ease of doing business and Startup India, the DPIIT plans to return to its core mandated objective of providing uniform industrial development nationwide, especially to backward and remote areas. “The initial groundwork for the government’s flagship initiatives like Startup India and ease of doing business and Make In India has been laid and work in these areas would continue. But we need to go back to the basic agenda of providing more jobs through industry in the hinterland,” said a senior source. The government had severely cut down on expenditure in this area, with the 2019-20 (FY20) Budget providing Rs 909 crore, down from the RE of Rs 1,707 crore in the earlier one. As this again becomes a prime focus, the department has argued for major fund infusion that will be needed for creating infrastructure at the ground level, said a senior official. He added that the DPIIT has also pushed hard for more funds to be made available for industrial promotion and the Make In India scheme, which was allocated Rs 473 crore in FY20. Also, officials expect the DPIIT to see growth in allocations for refund of central and integrated goods and services tax to industrial units in the Northeastern region and Himalayan states, pegged at a significant Rs 1,700 crore for FY20. Also, in line with previous years, the department hopes to increase its allocations on the ease of doing business, which saw an additional Rs 100 crore through the eBiz project and Startup India. As of December, the government estimates the Startup India initiative to have created 285,890 direct jobs since its inception in 2016. More than 25,000 start-ups have been recognised by Startup India. The government data suggests that slightly more than 11 direct jobs are created per start-up. “We have seen that each direct job leads to 3x indirect jobs, and as a result, the total jobs created by these start-ups are estimated at more than 560,000,” said a senior official. However, the figures are self-reported by start-ups and not verified by the government. This job growth has come at a rough cost of more than Rs 3,000 crore disbursed by the government to fund start-ups as of November 2019. In 2016, the Centre had established a Rs 10,000-crore fund of funds under the Small Industries Development Bank of India to meet the financial needs of start-ups. However, the finance ministry is unlikely to ramp up disbursements to the national industrial corridor projects as well as the new ambitious exhibition-cum-convention centre coming up in the suburb of Dwarka in Delhi, said sources. The centre is expected to be completed by 2025, with trunk infrastructure along with portions of the main project likely to be operational in the current year.
Source: Business Standard
The Customs department so made the software in its Electronic Data Intercharge system that when exemption from BCD was claimed by presenting such scrip, the system automatically allowed it by a debit. The Central Board of Indirect Taxes and Customs (CBIC) has issued a clarificatory circular that Social Welfare Surcharge (SWS) cannot be debited to the duty credit scrips issued under the Merchandise Exports from India Scheme (MEIS) or Services Exports from India Scheme (SEIS). SWS must be paid in cash, says CBIC. MEIS and SEIS allow exemption of basic customs duties (BCD) and specified Additional Duties of Customs (ADC) but not the exemption of SWS. One condition for the exemption is that the amount of duties must be debited to the duty credit scrip issued under these schemes. ...
Source: Business Standard
The rupee slipped 3 paise to close at 71.11 against the US dollar on Monday, tracking a steady rise in crude oil prices and weakness in domestic equities. Forex traders said the drop in the rupee was largely due to a spurt in crude oil prices following rising tensions in the Middle East and North Africa. At the interbank foreign exchange market, the local currency opened on a weak note at 71.07 and fell further to a low of 71.15. It finally settled at 71.11, lower by 3 paise against its previous close. The domestic unit had settled at 71.08 against the American currency on Friday. Global crude benchmark Brent was trading 0.56 per cent higher at USD 65.21 per barrel on supply concerns after exports from Libya were blocked after a pipeline was shut down by armed forces and a strike at a key oil field in Iraq hit output. "Indian rupee opened with minor gains but gave away all its gains amid lower domestic equities and higher crude oil prices. The strength in dollar against major trading currencies also weighed on rupee," said V K Sharma, Head PCG and Capital Markets Strategy, HDFC Securities. Forex traders said the near term focus will remain on crude oil prices and foreign fund flows ahead of the Budget. So far this month, overseas investors have bought USD 1.71 billion in domestic equities while selling debt worth USD 1.13 billion. "This week the focus of the market will be on the World Economic Forum. Trump's speech at the forum will be closely watched for any geopolitical maneuvers, as he has kept few trade related questions lingering," said Rahul Gupta, Head of Research- Currency, Emkay Global Financial Services. The dollar index, which gauges the greenback's strength against a basket of six currencies, rose by 0.08 per cent to 97.68. The 10-year Indian government bond yield was at 6.65 per cent. "On the domestic front, no major economic data is expected to be released but market participants will be taking cues from the policy statements that will be released from Japan and Euro zone," said Gaurang Somaiyaa, Forex & Bullion Analyst, Motilal Oswal Financial Services. Meanwhile, on the domestic market front, the 30-share BSE Sensex gave up intra-day gains to settle 416.46 points, or 0.99 per cent, lower at 41,528.91. Likewise, the broader NSE Nifty sank 127.80 points, or 1.03 per cent, to 12,224.55. Foreign institutional investors bought equities worth Rs 264.26 crore on a net basis on Friday, according to provisional exchange data. The Financial Benchmark India Private Ltd (FBIL) set the reference rate for the rupee/dollar at 71.0436 and for rupee/euro at 79.1374. The reference rate for rupee/British pound was fixed at 92.9492 and for rupee/100 Japanese yen at 64.45.
Source: Money Control
|
Item |
Price |
Unit |
Fluctuation |
Date |
|
PSF |
1018.23 |
USD/Ton |
0% |
1/21/2020 |
|
VSF |
1383.87 |
USD/Ton |
0% |
1/21/2020 |
|
ASF |
2046.66 |
USD/Ton |
0% |
1/21/2020 |
|
Polyester POY |
1044.45 |
USD/Ton |
0% |
1/21/2020 |
|
Nylon FDY |
2257.89 |
USD/Ton |
0% |
1/21/2020 |
|
40D Spandex |
4180.73 |
USD/Ton |
0% |
1/21/2020 |
|
Nylon POY |
1201.78 |
USD/Ton |
0% |
1/21/2020 |
|
Acrylic Top 3D |
2498.24 |
USD/Ton |
0% |
1/21/2020 |
|
Polyester FDY |
5462.63 |
USD/Ton |
0% |
1/21/2020 |
|
Nylon DTY |
1303.75 |
USD/Ton |
0% |
1/21/2020 |
|
Viscose Long Filament |
2090.36 |
USD/Ton |
0% |
1/21/2020 |
|
Polyester DTY |
2301.59 |
USD/Ton |
3.27% |
1/21/2020 |
|
30S Spun Rayon Yarn |
2032.10 |
USD/Ton |
0% |
1/21/2020 |
|
32S Polyester Yarn |
1653.35 |
USD/Ton |
0% |
1/21/2020 |
|
45S T/C Yarn |
2447.26 |
USD/Ton |
0% |
1/21/2020 |
|
40S Rayon Yarn |
1806.31 |
USD/Ton |
0% |
1/21/2020 |
|
T/R Yarn 65/35 32S |
2243.32 |
USD/Ton |
0% |
1/21/2020 |
|
45S Polyester Yarn |
2199.62 |
USD/Ton |
0% |
1/21/2020 |
|
T/C Yarn 65/35 32S |
1966.55 |
USD/Ton |
0% |
1/21/2020 |
|
10S Denim Fabric |
1.29 |
USD/Meter |
0% |
1/21/2020 |
|
32S Twill Fabric |
0.70 |
USD/Meter |
0% |
1/21/2020 |
|
40S Combed Poplin |
0.98 |
USD/Meter |
0% |
1/21/2020 |
|
30S Rayon Fabric |
0.54 |
USD/Meter |
0% |
1/21/2020 |
|
45S T/C Fabric |
0.68 |
USD/Meter |
0% |
1/21/2020 |
Source: Global Textiles
Note: The above prices are Chinese Price (1 CNY = 0.14567 USD dtd. 21/01/2020). The prices given above are as quoted from Global Textiles.com. SRTEPC is not responsible for the correctness of the same.
The Viet Tien Garment Joint Stock Corporation (VGG) recently signed up with Luenthai and Newtech to establish the Viet Thai Tech fabric factory to supply fabric for the garment and textile industry. With a total investment of $20 million, the project’s first phase will involve $12 million and the second, $8 million. It is expected to turn operational in June. Chairman of the Vietnam Textile and Apparel Association Vu Duc Giang said the project aims at proactively sourcing raw materials, shortening production and delivery time and meeting strict quality requirements from customers in the garment industry. Giang, who is also chairman of VGG, said the factory will contribute to solving the shortage of fabric resources that is now a big obstacle for the domestic garment and textile industry, according to a report in a Vietnamese newspaper. The factory will be built according to US green standards and will be the first green standard fabric factory in the country.
Source: Fibre2Fashion
The National Cotton Council (NCC) has announced that the Phase 1 trade deal with China, recently signed by President Donald Trump, could provide a much-needed boost to US cotton exports. The Phase 1 agreement includes a chapter on agriculture with Chinese purchases of US products intended to reach at least $40 billion per year starting in 2020. However, the overall impact for cotton remains uncertain as commodity-specific details have not been released, according to a press release by NCC. “While we welcome Phase I and are hopeful about the potential for future increased sales to China, US cotton producers continue to face a challenging economic climate. As such, we encourage President Trump and USDA to follow through with the third tranche of MFP payments as quickly as possible,” NCC chairman Mike Tate, an Alabama cotton producer said. Tate was referring to the administration’s $16 billion trade assistance package through the market facilitation programme to help mitigate China’s retaliatory tariffs. According to him, this assistance, administered by USDA, has been very timely with US cotton’s economic health deteriorating as market share in China is being lost to Brazil and Australia. The first MFP tranche of payments came in August 2019 and the second tranche in November 2019. “Since the middle of 2018, the ongoing trade dispute between the US and China has been front and centre in any discussion of the cotton market. Cotton prices remain well below pre-dispute levels due to China’s imposition of a 25 per cent retaliatory tariff. That’s why removal of these tariffs should be a high priority for any upcoming dialogue between the two countries,” Tate said.
Source: Fibre2Fashion
The Cotton Council International (CCI) has announced that Indonesian textile mills are set to purchase an additional 194,000 US cotton bales, worth more than $65 million, thanks to CCI’s 2019 Special Trade Mission (STM) from Indonesia to the US, sponsored by FMD funding. CCI is the export promotion arm of the National Cotton Council of America (NCC). Eighteen cotton buyers from Indonesian textile mills, as well as two members of the Indonesian Textile Association, attended the STM to learn more about the benefits of US cotton. Indonesia is the fifth largest cotton fibre-importing country, and mills in Indonesia were expected to import a total of 3.1 million bales in 2018/19. The companies that participated in the STM represented some of the largest textile mills in Indonesia. Their companies consume around 2.1 million bales, representing roughly two-thirds of total cotton consumption in Indonesia in 2018/19. Prior to the STM, US market share with these mills was estimated at 40 per cent, according to CCI. The STM visited six cities throughout the Cotton Belt in July 2019. The STM provided participants with a better understanding of the many elements that make up the seven segments of the US cotton industry. These meetings assisted in educating the foreign trade, as well as encouraged business relationships with the intention of increasing US cotton exports in the future. One of the purposes of the STM is to provide participants with a better understanding of the US cotton industry, and 87 per cent of the participants stated their main objective in participating was to learn more about US cotton. To meet that goal, prior to the tour, CCI asked the participants which topics they would most like to have addressed by the US cotton industry. CCI also arranged a pre- and post-survey to capture the group’s change in knowledge and purchase intent. The Indonesian participants were concerned about US cotton quality and the steps being taken to improve contamination from bale packaging. They were interested in sustainability and how US cotton producers were implementing sustainable practices on their farms. They were also looking to learn about trends and innovations in cotton products that would help them in their business with brands and retailers. Overall, 100 per cent of the participants stated they were able to meet their objective of learning more about the U.S. cotton industry by participating in the STM, and 100 per cent stated they learned a lot about US cotton during the STM. Furthermore, all of the participants were satisfied with the STM and all were likely to recommend it to a colleague. A second goal of the STM was to encourage business relationships with the intention of increasing future US cotton exports. Around 94 per cent of the participants stated that their participation in the STM provided them opportunities to develop new business relationships and contacts, and 82 per cent believe they will purchase more US cotton in the future.
Source: Fibre2Fashion
A new tool, released today, aims to push apparel and home furnishings companies further toward sustainability, and ramps up efforts by the textile and fashion industries to align material choices with the Sustainable Development Goals. The Material Change Index (MCI) produced by the nonprofit Textile Exchange, is part of that organization’s Corporate Fiber & Materials Benchmark program, which enables participating companies to measure, manage and integrate a preferred fiber and materials strategy into their business. The index was created in part through the voluntary participation of more than 170 companies, including major brands such as Adidas, C&A, Gucci, IKEA, Inditex, Nike, Patagonia and Tchibo. GreenBiz Group is serving as the lead media partner for the launch of the index, including publishing a series of articles produced by the Textile Exchange over the coming weeks with actionable insights for apparel and textile companies looking to source raw materials more sustainably. The MCI family of indices tracks progress across cotton, polyester, nylon, manmade cellulosics, down, wool, material circularity and the SDGs. The index launch comes at a pivotal moment for the fashion industry, which has been under increased scrutiny for its environmental and social impacts. One reason is that the fashion industry’s sprawling supply chains stitches together a wide range of sectors and concerns, including agriculture, chemicals, energy, forestry, oil and gas, retail and transportation. And in each of those lies a range of extraction, energy, emissions and waste challenges, as well as a variety of social issues, from animal welfare to the rights of indigenous cultures. The Textile Exchange focuses on the fiber material portion, “the very beginning of a quite long and often quite convoluted supply chain,” explains Liesl Truscott, director of the organization’s European and materials strategy. “It can get either forgotten about or is relatively invisible when the industry looks at the apparel and footwear and home textiles that are being produced.” Truscott’s organization has been working for nearly two decades to bring visibility into the industry’s supply chain. It began its life as the Organic Cotton Exchange, then became the Organic Exchange, now the Textile Exchange, at each step taking on an increasingly broad portfolio — from cotton to additional materials, and from organic to other means of growing and producing sustainable textiles. Along the way, the group, which has roughly 200 member companies — including brands, retailers and suppliers — has created a series of industry standards, covering organic content, recycled claims, chain-of-custody verification and “responsible down,” as in the feathery type. “When you think about the whole volume of the industry, we still may be small in number, but we're mighty in leadership,” LaRhea Pepper, the Textile Exchange’s managing director, told me recently. “We definitely have the brands and retailers and their supply network that are driving and being innovative and adopting those best practices, experimenting with business models, and really homing in on how they can make the best impact.”
Natural instincts
At the core of the Textile Exchange’s work is a benchmarking program, in which companies disclose a range of policies and practices, and their performance against each, via a secure online portal. The information submitted by companies is reviewed by the Textile Exchange and verified by an independent third party. The group also publishes a leaderboard of volume users of sustainable fibers, including which companies are using the sustainability standards associated with those fibers. “It taps into a company's natural instincts to be competitive, to be able to lead in improvements, and so there's a bit of a friendly race to the top that's incorporated into a benchmarking program,” explained Truscott. The disclosure process itself is significant, she explained, by requiring companies themselves to better understand the sources and conditions under which their materials are produced. “At one point, if you asked a company where their cotton is coming from, they wouldn't know or wouldn't really be expected to know. Now, with the standards and the traceability that chain-of-custody can provide, we have better tools for collecting that data, centralizing it and being able to see further back. And Country of Origin was something nobody talked about a few years ago, and now it's fairly common, particularly among the leaders and those that are fast catching up.” To be sure, while materials typically represent the lion’s share of an apparel company’s supply chain, it may be only a fraction of its environmental impact. At C&A, the European fashion manufacturer and retailer that’s been a leader in circular economy, “Raw materials represent 17 percent of our impact” from a life-cycle perspective, Jeffrey Hogue, the company’s chief sustainability officer and a Textile Exchange member, told me. Still, he said, sustainable sourcing can have an outsized impact, both internally and externally. “I think that the leading brands create a very holistic approach around sourcing sustainable fibers, where it's not just about gaining more volume and using a third party to verify. It's about educating our buying and sourcing organization to make the right decisions when they're faced with difficult tradeoffs. It's about going beyond certifications and actually putting our feet on the ground to evaluate with our own eyes what's happening there and to create more engagement at the farm level. It's about improving livelihoods.” It will be interesting to watch how the Materials Change Index moves companies and, ultimately markets, and how broadly it is adopted beyond the current Textile Exchange membership. “I think there's a lot more opportunity for the industry to come together collectively to work on these problems and not just having a number of leading brands setting their own commitments in isolation of other entities,” says Hogue. Adds Pepper: “It's exciting, because there's finally this awakening at this bigger level, but it's also daunting at some level of, ‘Whoa, we've got a lot of work to do.’ But I think the thing that's most hopeful is that we have a direction of travel.”
Source: GreenBiz
Truetzschler’s My Wires app is a hit among clothing mills, with more than 400 users from 22 countries using the application actively. The My Wires app facilitates to manage all tasks related to clothing management digitally. From intelligent machinery to digital mill monitoring and service offers, Truetzschler has developed a wide range of solutions. When it comes to track the wearing of their carding wires, many mills still rely on pen and paper. Employees manually note down every day how many days each carding machine has run between services. This tracking method is imprecise, means a lot of work and no one can access it in real time. My Wires tracks the wearing automatically and according to the customers’ needs. For all cards and wires, independent of manufacturers. By scanning new wires, an automatic tracking will start. Users can opt for push notifications to remind them of important upcoming events, like when a wire must be replaced. It is possible to plan the maintenance for the next month and generate order lists, the company said in press release. Over the years Truetzschler has developed its know-how on the interaction between cards and their clothings. My Wires has the maintenance recommendations of the premium partner Truetzschler Card Clothing already included. In case customers worked out their personal best results, they can set the recommendations to their specific needs. Push Notifications will notify them of any upcoming services. The owners of a free My Identity account can now combine their benefits. Initially, My Identity users could access the web shop and access the spare parts list of their machinery as they were commissioned. With My Wires, they can use the same login and don’t have to remember another password. Even better, all their projects, cards and wires are available as Easy Setup in My Wires, allowing them to digitise their complete wire management process in a few minutes. If the customer needs to plan the upcoming orders of the next month or year, My Wires will provide him with an exportable schedule already listing the correct article numbers. This allows a better overview and a faster internal purchasing process. The digital offers are cloud-based and extremely secure. Truetzschler relies exclusively on the highest security standards.
Source: Fibre2Fashion
