|
Textile Raw Material Price 2015-04-19 |
|||
|
Item |
Price |
Unit |
Fluctuation |
|
Crude Oil WTI |
56.71 |
USD/Barrel |
0.57% |
|
Crude Oil Brent |
942 |
USD/Barrel |
1.51% |
|
PX |
63.98 |
USD/Ton |
6.07% |
|
PTA Buy |
814.565 |
USD/Ton |
-0.39% |
|
PTA Sell |
695 |
USD/Ton |
0% |
|
MEG Buy |
1127.487 |
USD/Ton |
-0.14% |
|
MEG Sell |
910 |
USD/Ton |
-0.55% |
|
CPL Buy |
2242.07 |
USD/Ton |
0% |
|
CPL Sell |
1690 |
USD/Ton |
0% |
|
PC |
1129.1 |
USD/Ton |
0.72% |
|
Conventional Spinning PA |
2435.63 |
USD/Ton |
0.67% |
|
High-speed Spinning PA |
2484.02 |
USD/Ton |
0% |
|
ACN |
1637.195 |
USD/Ton |
0.50% |
|
Bottle Grade Chip |
1209.75 |
USD/Ton |
0% |
|
PSF |
1225.88 |
USD/Ton |
0% |
|
VSF |
1940.439 |
USD/Ton |
0.42% |
|
ASF |
2419.5 |
USD/Ton |
0% |
|
Polyester POY |
1322.66 |
USD/Ton |
1.23% |
|
Nylon FDY |
3032.44 |
USD/Ton |
0% |
|
40D Spandex |
6532.65 |
USD/Ton |
0% |
|
Nylon DTY |
1516.22 |
USD/Ton |
1.62% |
|
Viscose Long Filament |
3338.91 |
USD/Ton |
0% |
|
Polyester DTY |
5774.54 |
USD/Ton |
0% |
|
Nylon POY |
1580.74 |
USD/Ton |
0.51% |
|
Acrylic Top 3D |
2822.75 |
USD/Ton |
0% |
|
Polyester FDY |
2564.67 |
USD/Ton |
0% |
|
30S Spun Rayon Yarn |
2613.06 |
USD/Ton |
0.62% |
|
32S Polyester Yarn |
1903.34 |
USD/Ton |
0% |
|
45S T/C Yarn |
2871.14 |
USD/Ton |
0.56% |
|
45S Polyester Yarn |
2016.25 |
USD/Ton |
0.81% |
|
T/C Yarn 65/35 32S |
2467.89 |
USD/Ton |
0.66% |
|
40S Rayon Yarn |
2758.23 |
USD/Ton |
0% |
|
T/R Yarn 65/35 32S |
2613.06 |
USD/Ton |
1.25% |
|
10S Denim Fabric |
1.1291 |
USD/Meter |
0% |
|
32S Twill Fabric |
0.987156 |
USD/Meter |
0% |
|
40S Combed Poplin |
1.33879 |
USD/Meter |
0% |
|
30S Rayon Fabric |
0.761336 |
USD/Meter |
0% |
|
45S T/C Fabric |
0.780692 |
USD/Meter |
0% |
Source: Global Textiles
Note: The above prices are Chinese Price (1 CNY = 0.1613 USD dtd. 19/04/2015)
The prices given above are as quoted from Global Textiles.com. SRTEPC is not responsible for the correctness of the same.
Many textiles factories in India have started participating in a project called Sustainable Water Resources (Swar) to improve resource efficiency, cut chemical use in 2014 by 402 tonnes, according to the Stockholm International Water Institute (Siwi). The company said that it considers a reduction in the use of chemicals, in addition to the substitution of harmful substances, a key part of chemical management. The company added that this is particularly true for the textiles industry because if not properly treated wastewater leads to the depletion of oxygen in receiving water bodies. A reduction in water consumption also leads to a reduction in used chemicals.
More than 40 factories in Delhi and Jaipur participated in the project, which involved providing technical consultations to factories to help them improve their chemical efficiency related to washing, dyeing, printing and water treatment. The project lead and Siwi programme manager, Rami Abdelrahman said that this achievement is largely related to the choice of chemicals, the dosing of these chemicals, getting the colours/dying right the first time and reducing the number of re-dyes. In the past two years, 13,000 factory workers and managers have been trained. Mr Abdelrahman said that the focus of the training is to understand good chemical management practices, particularly around the choice of materials, storage and handling, and awareness of international programmes to phase out hazardous chemicals.
More than half of the participating factories will continue to work on their own, continuously communicating their development to their clients in Sweden. Others have joined a network created by Siwi and the three fashion brands to continue education. Mr Abdelrahman said that the factories continuing on their own realize that they now have enough competence and capacity to drive efficiency improvements. The remaining factories see a value in continuing with others, by sharing experiences, and getting support from experts assigned to the network. The project will expand to China, Turkey, Bangladesh and Ethiopia, and will include several more Indian states. The project involves Siwi, Swedish retail brands Indiska, KappAhl and Lindex, their Indian suppliers, the Swedish International Development Cooperation Agency (Sida) and India-based consultant cKinetics.
India’s Foreign Trade Policy (FTP) 2015-20 sets an ambitious target of $900 billion in merchandise and services export by 2020. Which means, exports of goods and services must grow at CAGR of over 15 per cent in the next five years to double from its current levels of $ 450 billion. The new FTP seems to be guided by the following considerations: keeping tabs on how much money goes out on account of export incentives given the fiscal constraints; WTO obligations to phase out export subsidies; linking the FTP to the Make in India initiative; and improving FTAs utilisation in trade. Thus, the number of countries covered under the new merchandise export from India scheme (MEIS) that replaces five existing incentive schemes, including FPS and FMS, has been pruned to a keep a tab on fiscal outgo. The quantum of export subsidies is lower than earlier.
Reduction of export obligation by 25 per cent under the EPCG (export promotion capital goods) scheme is expected to boost indigenous production of capital goods. The introduction of online filing of documents is to reduce trade transaction cost and help manufacturing exports by increasing their cost competitiveness. Merchandise falling under the categories of handloom products, books/periodicals, leather footwear, toys and customised fashion garments, with fob values of up to ₹25,000/consignment and their sale finalised through e-commerce, would get the benefit of FTP.
Advantages and limitations
The exports from SEZs suffering from high MAT would now be eligible for incentives. Another notable positive is the introduction of transferability of duty free scrips and allowing them for payment of customs, excise duties and service tax without any conditionality. However, it would be worth examining how effective the new FTP would be in pushing India’s merchandise exports.
It is very difficult to decode what forms the basis of categorising India’s export destinations into three groupings as well as allocation of MEIS rates for different commodities. What could explain the exclusion of countries such as Brazil, Bangladesh and China for export promotion with respect to top textile products? Again, increasing exports to China should have been top priority, but there is no real incentive for China in the new FTP even though it is a top export destination for cotton fibre and yarn. From a strict reading of the FTP, only direct export to Japan and the US should be eligible for MEIS. The problem is India mostly exports fabrics to Bangladesh, Indonesia, Myanmar and Vietnam for conversion into garments that are ultimately shipped to Japan and the US. It is worth mentioning that some of India’s well intentioned trade policy actions (to help LDCs like Bangladesh), though outside the purview of the FTP, are hurting indigenous manufacturing.
For instance, allowing duty free, quota free import of garments from Bangladesh (or Myanmar) without imposing sourcing obligations promotes the backdoor entry of Chinese textile material into India, and hurts the whole textile value chain in the country from fibre to yarn, fabrics and apparel.
Sourcing blues
The FTP needs to follow up with other actions like making the use of fibres, yarns and fabrics of Indian origin mandatory for allowing duty free imports of apparel from Bangladesh and other LDCs seeking preferential market access on non-reciprocal basis. It’s not that India would be the first country to impose sourcing restrictions for allowing duty free imports of apparels. The US imposes sourcing restrictions in all its existing and proposed trade pacts. Why can’t India?
Because of India’s FTAs and other trade deals such as Information Technology Agreement (ITA), India’s manufacturing sector has to suffer what is called inverted duty structure, that is, high import duties on inputs/ raw materials and lower duties on finished goods. Thus, one can import an apparel item duty free in India but its basic raw materials are subject to 5 to 10 per cent import duties. The last Union Budget did attempt to address some of the cases of inverted duties, but only partially.
Again, increasing the use of FTAs would require addressing non-tariff barriers in partner countries. For instance, Japan, as per the terms of the India-Japan CEPA, allows duty free import of apparels from India only if all the material used for the manufacture of apparels are either of Indian or Japanese origin. Indian businesses should realise that the days of export subsidies are numbered because of WTO obligations. To deal with slowing demand and rising cost on a long-term basis, businesses must develop suitable global strategies for sourcing, production and trade.
SOURCE: The Hindu Business Line
India’s textiles industry has come under fire in the 2015 Australian Fashion Report by the Baptist World Aid and Not for Sale for using child and forced labour in textiles production. According to the report titled ‘The Truth Behind The Barcode’, modern slavery and exploitation remain a significant concern in most apparel-producing regions around the world. The report, released ahead of the second anniversary of the Rana Plaza tragedy in Bangladesh, says that certain areas of India are home to some of the worst incidences of child and forced labour. It highlights a practice known as the ‘Sumangali Scheme’ in Tamil Nadu which has forced many young women into labour bondage.
These schemes see recruiters target unmarried girls (as young as 14) from poor families, offering them work for a 3-5 year period with false promises of professional development, comfortable accommodation, adequate food and a lump sum payment at the conclusion of their contract, which will serve as a dowry. Once the girls arrive at the mills however, they face a very different reality. Many encounter terrible living and working conditions, poor food, lack of access to adequate sanitation, forced overtime, gender discrimination and sexual abuse. It is estimated that less than 35 per cent receive their lump sum payment.
The report also criticises Bangladesh where the abysmally low cost of production attracts garment producers. These low costs come with a hefty price, including the lowest manufacturing wages in the world ($68 per month) and a history of appalling, potentially life-threatening working conditions. The garment industry in Bangladesh employs four million workers, 85 per cent of whom are women. The report assesses the ethical practices of 128 clothing brands and aims to empower consumers with the knowledge needed to purchase fashion ethically. Nine out of 10 companies supplying clothes to Australian consumers do not know where their cotton is sourced and most fail to pay overseas workers enough to meet their basic needs.
According to the report, a mere 12 per cent of companies could demonstrate any action towards paying wages above the legal minimum, and even then, only for part of their supply chain. Furthermore, 91 per cent of companies still don’t know where all their cotton comes from, and 75 per cent don’t know the source of all their fabrics and inputs. If companies don’t know how and where their products are made, then there’s no way for them to ensure that their workers are protected. Gershon Nimbalker, advocacy manager at Baptist World Aid said, “If companies don’t know, or don’t care, who is producing their clothes, it’s much harder to know whether workers are exploited or even enslaved.” Jonothan Hirt, the Not For Sale Australia director said, “Consumers increasingly want to buy products that are ethically made. The Australian Fashion Report by Not For Sale and the Baptist World Aid Australia empowers buyers make informed decisions. Collectively, we can pressure companies to invest time and resources into investigating their supply chains.” The Australian Fashion Report is the culmination of two years of research by Baptist World Aid Australia, an aid and development organisation with a strong advocacy programme and Not For Sale Australia, an anti-trafficking campaign based in San Francisco.
SOURCE: Fibre2fashion
Puducherry Government has joined hands with Snapdeal to market and promote the rich and diverse handicrafts of local artisans online under the brand name ‘Artisanat’. The agreement was entered this month through online dealings, B Vasanthakumar, managing director of the federation said. A memorandum of understanding was executed to this effect between Puducherry State Cooperative Handloom and Handicrafts Federation (PSCHHDF), a government of Puducherry undertaking, with Snapdeal, an online shopping portal. Through this MoU, Snapdeal will address some challenges such as lack of promotion and market accessibility that the handicraft industry is currently facing.
Technical and operational support to local artisans would be offered by Snapdeal to help them market their products to a larger consumer base. Initially, around 10 popular items would be put up for sale and based on the response it will be scaled up, said Vasanthakumar. As part of this partnership, Snapdeal will equip the artisans with online cataloguing and refine offerings of the products through its data analytics tools, according to a release from Snapdeal. This initiative will enable customers choose from a wide range of signature handicrafts from Puducherry.
Vishal Chadha, vice president, market development at Snapdeal, said that they are committed to empowering the small and medium businesses in India by promoting entrepreneurship and direct market access through technology. This association is primarily to provide a platform to the rural artisans from Puducherry to promote and sell their indigenous products to a nationwide audience and thus create employment opportunities. It is a mutually beneficial association promoting an all-inclusive growth of the handicrafts industry and create a significant business value for them.
The PSCHHDF will be coordinating with around 20 primary societies producing the crafts and Snapdeal, said Vasanthakumar. Leather craft, textile pottery, handmade paper, wood carving, clay and terracotta, jewellery, jute craft, metalwork, candles and incense sticks will be available on Snapdeal from May 2015. This initiative will provide artisans from Puducherry a wide market without having to travel and display their products from place to place.
SOURCE: Yarns&Fibers
Kerala government contemplating on the possibility of reviving the operations of Komalapuram Spinning and Weaving Mills, public sector company located at Komalapuram, near here. The unit which was launched as Kerala Spinners Limited a subsidiary of a private entity in 1964. In March 2003, the company suffered losses and illegally shut down. The company was declared as a sick unit by the government in 2006. The unit was formally taken over by the government in November 2011 and handed over to the Kerala State Textiles Corporation Ltd. (KSTC)
The company, rechristened as Komalapuram Spinning and Weaving Mills, was subsequently inaugurated by former Finance T.M. Thomas Isaac in February 2011. However, the operation of the unit has not taken off owing to certain legal hurdles. Chief Minister Oommen Chandy convened a meeting of people’s representatives, company officials and trade union leaders at the District Collectorate on Friday. At the meeting, KSTC Managing Director A.V. Rajan informed that machinery worth Rs. 46 crore present at the unit remained operable and that there were no procedural obstacles in procuring raw materials or marketing the products.
He added that an estimated amount of Rs. 20 crore would be required in re-launching the facility and required a total of 352 employees. The former employees, who were laid off at the time of the closure, will be provided the first priority during the employment process. He further added that a meeting will be soon called of the Industries Minister, the Finance Minister, concerned officials and other stakeholders of the company at Thiruvananthapuram to discuss the issue of reviving the company.
District Collector N. Padmakumar proposed reviving the functioning in two phases. He called for setting a cut-off period of 4-5 months for launching the spinning operations. The commencement of weaving at the factory would require more time for providing specialized training for the workers. An amount of Rs. 2.30 crore must be released to the Kerala State Electricity Board (KSEB) for launching the tender process to ensure electricity connection at the unit. K.C. Venugopal, MP, urged the Chief Minister to issue the necessary directions to the Advocate General for clearing the existing legal hurdles relating to labour issues.
SOURCE: Yarns&Fibers
A comprehensive mobility plan would soon be drafted for the textile hub of Tirupur and its adjoining areas, with heavy emphasis on improving public transport and pedestrian facilities over the course of the next five years. With the World Bank recently approving a $ 400 million grant to develop Vellore and Erode as model cities, and the Union government in the process of rolling out the Smart City initiative, the State government is keen to set the ball rolling on several pending urban development initiatives, a senior government official said.
Mobility plans have already been developed for Coimbatore and Salem, and all the 11 municipal corporations in the State would have similar city-specific plans in phases, the official said. There would significant emphasis on pedestrian infrastructure and bus rapid transport systems in all tier-II cities, the official added. In the case of Tirupur, the Directorate of Town and Country Planning has invited consultants to conduct a detailed study and come up with proposals. “These initiatives are largely being driven by the need to access Central government funding, such as through the proposed new Smart City initiative. Having a plan on what needs to be done is essential. The State should be in a position to predict what has to be in place 10 years from now,” a well-placed source said.
Some of the points of enquiry in Tirupur would be the feasibility of constructing high-quality pedestrian footpaths on all roads with a width of over 15 metres, bus fleet expansion and dedicated lanes, and the introduction of infrastructure to promote use of bicycles as a mode of transport.
SOURCE: The Hindu
Reduced obligations in the Foreign Trade Policy 2015-2020 for exporters who buy capital goods from Indian manufacturers will push the ‘Make in India’ initiative. The move is expected to lower import dependence and augment quality production. Exporters said since the obligation was based on the duty amount saved, it would be easier to meet the requirement. The Export Promotion Capital Goods (EPCG) scheme allows duty free imports of machinery and parts against an undertaking that a firm will export a specified amount within a stipulated time. The new trade policy reduces the export obligation to 75 per cent from 90 per cent in the EPCG scheme. This is for exporters who opt for domestic procurement over imports based on the duty saved amount and not on the free-on-board (FOB) value. “The earlier export obligation was based on the FOB value and now it is on the duty saved, it could be either customs or excise duty. This way, firms will be induced to procure locally,” director general of Foreign Trade Pravir Kumar told Business Standard. Exporters procuring capital goods locally will also face the export obligation since they are subjected to excise duty concessions.
During 2008-09 several exporters defaulted on their obligation due to a slowdown in demand overseas. The hardest hit at that time was the steel industry. According to Ajay Sahai, chief executive officer and director general of the Federation of Indian Export Organisations, “The relaxation on domestic procurement is a good move which will boost the domestic capital goods industry. But even in previous policy domestic capital goods manufacturers were provided an exemption of excise duty and deemed export drawback.” Sahai said there were chances the petroleum sector would default this time due to crashing crude oil prices.
The EPCG scheme in the new trade policy allows import of capital goods for pre-production, production and post-production at zero customs duty. It also allows procurement of capital goods from domestic sources. Under this, the export obligation will be equivalent to six times the duty saved on capital goods. “The reduction in export obligation coupled with a further reduction if an applicant decides to purchase capital goods locally should give an impetus to import substitution,” said Amit Kumar Sarkar, partner, Grant Thornton India.
PUSHING THE AGENDA
SOURCE: The Business Standard
State-owned ECGC Ltd is taking a cautious approach to providing credit cover on shipments to Russia, its officiating chief Geetha Muralidhar has said. “We are providing cover only on a case-by-case approval basis,” Muralidhar told Businessline here. She was in the Capital to attend a FICCI-Exim Bank event on promoting trade and investments with BRICS countries.
The main role of ECGC is that it insures exporters’ credit risks against both commercial and political conditions and guarantees payment to the exporters. Risk perception on Russia has been on the rise ever since the US and the EU imposed sanctions over the Ukraine crisis. The Western world sanctions along with the steep plunge in oil prices were the key factors that had led to the precipitous fall in value of the rouble last year. ECGC is currently undertaking an internal review as to whether Russia needed to be “downgraded” or not, an official said on the condition of anonymity. The review is expected to be done by May 6 and any downgrade in rating would mean higher risk and thereby increased premium for ECGC cover on shipments to Russia.
“As on date, we still cover (shipments to Russia). It is not that we have stopped it. The risk perception is higher,” the official added. India sees huge potential for exports to other countries in the BRICS grouping. In the first 10 months of fiscal 2014-15, India’s total exports stood at $262 billion, of which exports to BRICS stood at $22 billion.
SOURCE: The Hindu Business Line
India has expressed deep disappointment over the non-implementation of IMF quota and governance reforms that would give it a greater say in the global crisis lender, matching the country’s growing economic might. “We are greatly disappointed that the 2010 Quota and Governance Reforms have not become effective in spite of the strong support of the global community for the reform,” Finance Minister Arun Jaitley said in his address to the International Monetary and Financial Committee. “We are also concerned that we have not made any headway in the forward looking elements of the 15th Review, including the review of the quota formula and the initiation of the discussions on the Review,” he said.
Jaitley said governance reforms are required to ensure the International Monetary Fund’s credibility, legitimacy and effectiveness. “They are also most imperative to maintain its relevance. They, therefore, should not be deferred indefinitely,” the Minister said, urging the members who have not yet ratified the 2010 Quota and Governance Reforms to do so at the earliest. The IMF quota reforms seek to provide greater say to emerging economies like India and China at the Fund, where the US and large European countries command high influence.
The 2010 reforms were originally propelled by Washington, and the President Barack Obama’s White House has repeatedly endorsed them. But the US Congress has refused to sign off on the deal, with some legislators not wanting to contribute more money to the IMF and others concerned about any erosion to the dominant US role at the fund. In the interregnum, the IMF Executive Board should work expeditiously to complete its work to make meaningful progress in the key areas covered by the 2010 Quota and Governance Reforms pending their full implementation, Jaitley said.
“Among the options being considered, we believe that the delinking option remains the most desirable option since it is the nearest in form and substance to the 2010 reform package,” he said. The ad hoc option would reduce the incentive to implement the reforms in full, he said, adding it is important to begin work in earnest on the 15th Review so that it can be completed by December 15, 2015. “The continuance of such momentum in the IMF governance and quota reforms is essential to maintain the effectiveness, credibility and relevance of the IMF as a multilateral quota based institution, which reflects adequately changes in the global economy in a dynamic framework,” he said. In his address Jaitley said many emerging market economies have benefited from the sharp decline in oil prices, saying it provides a window to implement energy reforms, phase out subsidies and build fiscal buffers wherever macroeconomic conditions permit.
SOURCE: The Business Standard
The international crude oil price of Indian Basket as computed by Petroleum Planning and Analysis Cell (PPAC) under the Ministry of Petroleum and Natural Gas was US$ 61.17 per barrel (bbl) on 17.04.2015. This was higher than the price of US$ 60.23 per bbl on previous publishing day of 16.04.2015.
In rupee terms, the price of Indian Basket increased to Rs 3813.95 per bbl on 17.04.2015 as compared to Rs 3756.55 per bbl on 16.04.2015. Rupee closed stronger at Rs 62.35 per US$ on 17.04.2015 as against Rs 62.37 per US$ on 16.04.2015. The table below gives details in this regard:
|
Particulars |
Unit |
Price on April 17, 2015(Previous trading day i.e. 16.04.2015) |
Pricing Fortnight for 16.04.2015 (March 28 to April 10, 2015) |
|
Crude Oil (Indian Basket) |
($/bbl) |
61.17 (60.23) |
54.92 |
|
(Rs/bbl |
3813.95 (3756.55) |
3425.91 |
|
|
Exchange Rate |
(Rs/$) |
62.35 (62.37) |
62.38 |
SOURCE: PIB
The business delegate from Turkey who visited Tanzania recently expressed interest in investing in Tanzanian agriculture, textile, constructions and automobile spare parts sector. This was informed by the Alliance of Businessmen and Industrialists of Tanzania and Turkey (ABITAT). The ABITAT is also an official representative of the Confederation of Businessmen and Industrialists of Turkiye (TUSKON) here in the Tanzania. TUSKON conducts several trade bridges every year that links all of its members.
ABITAT President Ali Akkiz on Thursday in Dar es Salaam said that there is an increasing interest of business delegations from Turkey especially in last three years. All this is because of relentless effort by Confederation of Businessmen and Industrialists of Turkey (TUSKON) and Alliance of Businessmen and Industrialists of Tanzania and Turkey (ABITAT). He added that Turkey was not a petroleum rich country thus had to work hard to compete with other countries. When Turgut Ozal came to power Turkey's economy depended on agriculture. After him Turkey became very famous for its textile industry and construction. But it took a long time to see the opportunities in Africa.
ABITAT want Turkish businessmen to invest in Africa, especially in Tanzania. Tanzania means the gate of East Africa for ABITAT. By making investment in Tanzania they can address the countries around Tanzania which are landlocked. The ABITAT President also said that Turkish business community feel that they can do many things in Tanzania. In last three years, ABITAT hosted around 2500 businessmen from Turkey. Not all of them came for business. Some of them came just to see Dar es Salaam, Zanzibar, Serengeti, Ngorongoro etc. They saw the country and the opportunities there. In fact, nearly 2.5 percent came back for investment.
Akkiz underscored that ABITAT began to make introductory programmes in Turkey to attract big fishes. Last year, for example, they invited number one of Turkey, KOC Group which owns 10 percent of Turkish industry. The trade between Tanzania and Turkey is very low when compare with the other countries but with the World Trade Bridge programmes organized in collaboration with TUSKON will make Tanzania known by Turkish investors and Tanzanian businessmen. ABITAT organizes business match-making between Tanzanian and Turkish businessmen. They also organize events, seminars, workshops, field trips, conferences and debates that keep their members enlightened on various business opportunities.
SOURCE: Yarns&Fibers
The most influential event on textile industries in South East Asia territory, INATEX-INDO INTERTEX-TECHNITEX 2015, is scheduled to take place from 23-25 April 2015 at Jakarta International Expo (JIEXPO) Jakarta – Indonesia. This three binding exhibition, with theme, “The Only Trade Platform to Meet ASEAN Garment Industry”, will set as an exclusive business platform for domestic and international quality supplier of textile and garment industries. There are 490 exhibiting companies from 24 countries all over the world in this event occupying over 12,000 sqm of the JIEXPO exhibition ground consisting of Hall A ( A1, A2 and A3) and Hall D (Hall D1).
Paul Kingsen, the exhibition project director stated: “This year we launch new chapter under the name of TECHNITEX which is special exhibition performing all vertical aspect of the raw material, products and equipments relating to nonwoven industries. Since Indonesia has a growing nonwovens and technical textile sector, there would be smooth transition of many producers willing to diversify from traditional textile production. There is one-day seminar on 23 April held by ANFA talking over the potential and opportunity of nonwoven industry to grow in Indonesia”
“INATEX will show all range of material, products and accessories on textile industries. INDO INTERTEX will show new machinery and technology on textile and garment industries. These three exhibitions are also expected to attract more than 8,000 visitors from local and international business owners and professionals who are constantly exploring option to improve their productivity and to respond promptly to customers’ demands”, added Kingsen.
Supported by Indonesia Ministry of Industry, Indonesian Textile Association, Asia Nonwoven Fabrics Association, Indonesian Chamber of Commerce and Industry, Indonesia Exhibition Companies Association as well as other strategic partners, these exhibitions will give you opportunity to meet the international decision makers, developers and buyer of entire value-creation chain.
SOURCE: Yarns&Fibers
The home textile sector, garment and towel manufacturers; all three operate under a philosophy called the ‘make-to-order manufacturing strategy.’ Together, they account for more than $10 billion of Pakistan’s exports to European and North American customers and more than 50% of the country’s total exports. They operate much like an ‘a la carte’ restaurant where each meal is prepared fresh to serve each customer’s unique culinary demand.
Large western retailers, to whom this industry sells, rely on their sophisticated software to sift through the retail data coming live from thousands of their retail outlets. The software determines which designs are selling and which ones are not. This demands continuous inputs from designers and their procurement staff. The former modify their designs while the latter keep fine-tuning the re-order quantity of merchandise being sourced from the country.
The procurement challenge
From the moment a firm order is placed, a manufacturer has 4 to 12 weeks to ship it. This time is equally split between procurement and in-house manufacturing activities. The former consumes more than 65% of manufacturer’s sales revenues. Thus, our $10 billion industry approximately spends $6.5 billion on procurement of raw materials, more than twice the country’s annual defence procurement budget.
The quantity of materials ordered has to be accurate too. If ordered short or not ordered at all, the production would halt and the customer order would be delayed, resulting in heavy late shipment penalties. The fact that ultimately the factories do ship their order proves that all materials are procured after all. There are more risks involved when ordering materials in excess, ie, over and above the legitimate requirements of the order. In this case, the error is least likely to be detected. It instantly turns leftover materials into worthless dead stock.
Even restaurants fare better with leftover material; they can at least use it to make more dishes. Not so for home textiles or garments. A fabric print, a zipper or a button can be so unique that it may only be used in a single order and nowhere else. During my assignments with large factories in Bangladesh and Pakistan, I have often accompanied aghast and incredulous owners during their rare visits to stock rooms, filled to the brim with dead stocks worth 3% of annual sales, unexplained and unused.
The problem
The human effort required to determine correct procurement requirements for make-to-order sector is mind numbing. A single order for trousers may involve 10 sizes and 3 colours, thus 30 Stock Keeping Unit (SKU). Each SKU may need 20 different materials such as fabrics, linings, zippers, eyelets, rivets and buttons. Each order may require up to 600 separate calculations to determine its materials. A mid-sized factory would normally handle a minimum of 50 such orders at any given time. Since all orders contain unique products, this could involve 30,000 unique raw materials to be purchased over a three-to-four-week time window. That’s 1,000 unique items a day. Working with a team of a dozen or so merchandisers, it’s still 200 unique procurement calculations per day per person.
What’s only worse than the calculation is its verification. A supervisor would need another team to do the verification work. Unsurprisingly, implicitly trusting the material calculations is taken as the intuitive but lazier way out. Unfortunately, that’s also the industry norm. Humans like to play it safe. When confronted with the risk of causing material shortage, ordering more is always safer. Also lack of accountability gives birth to graft.
The solution
So, what can these businesses do to buy materials in their correct quantity? Especially, when they know that these mistakes could cost them up to half of their profits? The truth is that they cannot. Not unless they deploy a sophisticated technology of Material Requirement Planning (MRP). Einstein’s famous quote “no problem can be solved from the same level of consciousness that created it” comes to mind. The need of the hour is for the factories to input bills of materials (BOM) of each order into MRP calculators running on the computers. These remove humans from the equation; along with their biases, limitations and consequences of lack of supervision and accountability. By purchasing materials in correct quantity, a make-to-order manufacturer can avoid losses up to 3% of its revenues.
SOURCE: The Tribune
Export-oriented enterprises in seven industrial parks under the cottage industry corporation should enjoy duty-free imports of raw materials, a core group has suggested. The industrial estates in Rajshahi, Pabna, Sirajgonj, Kustia, Tangail, Narshingdi and Comilla under the Bangladesh Small and Cottage Industries Corporation (BSCIC) should be declared bonded areas, which the group says can attract local and foreign investment.
The government in November 2013, headed by vice-chairman of EPB had formed a 12-member core group to make suggestions and way forward for the country's textile sector to speed up export activities. The members of the committee are representatives from the central bank, National Board of Revenue (NBR), Bangladesh Foreign Trade Institute (BFTI), Federation of Bangladesh Chambers of Commerce and Industry (FBCCI), Bangladesh Terri-towel and Lilen Manufacturers and Exporters Association, Bangladesh Specialised Textile Mills and Power Loom Industries Association, BGMEA, BKMEA, BTMA and Export Promotion Bureau (EPB).
"Our textiles sector is facing different types of difficulties after Rana Plaza collapse and Tazrin incidence, which forced us to rethink the facilities given to the exporting sectors," vice chairman of EPB, Suvashis Bose told the FE. "After brain-storming with both the government and the private sector, we've finalised a 27-point suggestions for helping the exporters move forward," he added. "If the recommendations are implemented in phases, we believe most of the difficulties of exporters will be solved and export earning of the country will increase in the coming years," Mr Bose added. He said declaration of bonded area of the seven industrial estates under BSCIC would help attract investors. Mr Bose said the suggestions have been sent to the commerce ministry for approval and further action.
One suggestion of the core group is raising special fund to train manpower of textiles and other export-oriented industries. Providing duty-free facility and soft loan to the entrepreneurs in importing and installing of central effluent treatment plants (CETP) in different industrial zones to meet the buyers' demand are other recommendations. The committee also suggested the government waive value- added tax (VAT) for export-oriented factories against usage of gas, water and electricity, expenditure against building factory, CSR activities, courier services security services and legal adviser's charges.
Providing 2.0 per cent special incentives to exporters doing production outside the EPZs against their exports, facilitating exporters to buy yarn from the mills through pay order instead of existing back to back LC and scrapping the provisions registration for in-bond and ex-bond in collection of raw-materials against export are among the recommendations. Exporters have hailed the suggestions made by the core group and urged the government to implement all the points as soon as possible. "Local exporters are facing different types of hurdles after the deadliest incidents, which have made us less-competitive in the international market. The government should implement the core group suggestions soon as possible to help boost exports," president of BGMEA Md. Atiqul Islam told the FE. If the government trains up manpower in the textiles sector, it will help exporters offset the challenges of skilled workforce shortage and wage hike.
SOURCE: The Financial Express Bangladesh
Two-way trade between Viet Nam and Russia hit US$2.6 billion(S$3.5 billion)last year. However, it accounted for less than 1 per cent of Viet Nam's total import-export activity with the world, which was US$298.2 billion. This means that the economic potential between the two nations was not being fully exploited, according to the General Department of Viet Nam Customs. Enterprises that trade with Russia said that it was difficult for them to expand their markets even though demand for Vietnamese products was high. They said the main reasons were harsh import regulations and high taxes Russia imposed on some products.
Many goods exported to Russia have to go through a third country in Europe, instead of going directly from Viet Nam to Russia, like wood products. Vietnamese wood product exports to Russia remain slow despite interest from the Russian market. Tran Quoc Manh from the HCM City Handicraft and Wood Industry Association (HAWA) said that Russia applied a tax for imported wood products based on weight, and wood products are heavy so the taxes are high.
Seafood enterprises also face difficulties. Alhough up to 400 Vietnamese seafood enterprises are allowed to export to the European market, only about 30 are licensed to export to Russia. For better and more sustainable export results, experts urged Vietnamese enterprises to develop a strategy for production and exports. Vietnamese enterprises have high expectations on opportunities to exploit the Russian market when the free trade agreement (FTA) between Viet Nam and the Customs Union of Russia, Belarus and Kazakhstan is signed.
The negotiations were concluded in December last year, and the two sides are preparing for the official signing of the FTA this year. When the FTA is signed, Vietnamese exports to Russia, including agriculture, aquatic products, garments, textiles, footwear and wood products, will be offered preferential taxes. Russia's import demand consists of consumer products like garments and textiles, footwear, fine arts and handicrafts, processed food, agricultural and seafood products and building materials. The two countries target to reach a trade turnover of US$10 billion by 2020.
SOURCE: The Asia One Business
