NATIONAL

• India’s overall exports to witness 10% jump on US GSP
• Govt gives nod to set up common facility centre to boost textile industry in Panipat
• Group of textile units in coordination with ITF to introduce EMS
• Q1FY16 sales climb 6% at denim fabric producer Arvind
• Parliament must pass bills vital for economic growth: CII

INTERNATIONAL

• Zimbabwe clothing and textile industry targets 100pc growth by 2020
• John Kerry says Pacific trade pact must stay on track
• Rules of Origin may be a hurdle for EU-Vietnam FTA
• Manufacturers of personal protective clothing focus on comfort, style and sustainability

Textile Raw Material Price 2015-08-06

Source: Global Textiles

Note: The above prices are Chinese Price (1 CNY = 0.16078 USD dtd. 07/06/2015)

The prices given above are as quoted from Global Textiles.com.  SRTEPC is not responsible for the correctness of the same.

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India’s overall exports to witness 10% jump on US GSP

With the US renewing generalised system of preferences (GSP) benefits on retrospective basis from July 29, India's merchandise exports can see a 10 per cent jump in the present fiscal of 2015-2016. Of the total exports of $310.57 billion in 2014-2015, US accounted for $42.44 billion. Under the US GSP, 3,500 product lines will be eligible for the benefits. Some of the main ones in these are engineering goods (mechanical machinery, electrical machinery and equipment, tools, agricultural implements), organic and inorganic chemicals, plastic and copper, among others. "In some of the sectors the GSP benefit is as high as 10-11 per cent. Keeping in mind the sectors that have been covered under the US GSP review this time, we expected total exports to go up by 10 per cent this fiscal," said Ajay Sahai, CEO, Federation of Indian Export Organisation (FIEO).

SOURCE: The Business Standard

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Govt gives nod to set up common facility centre to boost textile industry in Panipat

Union government has given its nod to set up a common facility centre in Panipat known for manufacturing textile products and textile machinery for industrialists associated with this sector to give boost. It would be a common place for industrialists to get training, knowledge and technology about the manufacturing of textile machinery. It would help them upgrade their skills with advanced technologies, said Vijay Kumar, director, MSME Development Institute (Ministry of Micro, Small and Medium Enterprises), Karnal. The government would establish this centre at Sector-25-II at a cost of around Rs 19 crore, out of which the Union government would provide Rs 12 crore, while the state government would contribute Rs 6 crore and rest of the amount would be paid by manufacturers of textile machinery. The director said that with the establishing of this centre, the new era of technological advancement would flow in this industry.

Manufacturers of textile machinery and parts welcomed this step and hope to export their products to Middle-East countries. At present, they export machinery to Sri Lanka, Bangladesh, Nepal and other countries. Panipat Small Engineering Workshop Association president Sukhbir Singh Malik welcomed the step taken by the government. Malik said that there were around 200 manufacturers of textile machinery and parts besides thousands of textile units in Panipat. With this new initiative, they would have new and upgraded technology and would be able to manufacture new machines and export to Middle-East countries, leading to profit.

SOURCE:Yarns&Fibers

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Group of textile units in coordination with ITF to introduce EMS

A group of 71 textile units in coordination with Indian Texpreneurs Federation (ITF) to implement a comprehensive energy management system (EMS) with an aim to continuously evaluate the machine health and operating practices through the hardware and software installed as part of the EMS to monitor energy consumption round-the-clock. Karthik Durai, the ITF executive member and the coordinator of EMS implementation, said that the EMS is unique as the usual energy audits, which are occasionally done in a space of a day or two, analyse the total energy consumed vis-a-vis the possible requirement. This conventional method thus cannot locate the micro-level defects that cause energy losses. Whereas, the EMS ensures that every machine in the said 71 units was fitted with a metre that is capable of reading various parameters like voltage, current, load consumed and other power factors and the data generated been sent to a common server in the unit for monitoring using a software programme, he added. This methodology would help the units which joined the initiative to identify the defects and factors in individual machines that lead to energy losses and take corrective measures accordingly.

Another interesting aspect in the venture is that the ITF has placed orders for the metres and software solutions that constitute the EMS with two companies in Chennai and Bengaluru based on the monitoring requirements of the units instead of just buying products what those two manufacturers could offer. Once the EMS becomes operational because of the round-the-clock monitoring facility, almost 10 percent of energy has been assumed will be saved by the units.

SOURCE: Yarns&Fibers

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Q1FY16 sales climb 6% at denim fabric producer Arvind

Consolidated revenue at India's largest denim producer and also branded apparel marketer Arvind Limited climbed 6 per cent year over year for the three months to June 30, 2015. For the first quarter of fiscal 2016, Arvind, also one of the largest integrated textile and branded apparel players in India, reported growth in consolidated revenue of 6 per cent over the prior fiscal first quarter at Rs 1,877 crore. “The Brands and Retail business showed strong growth of 14 per cent year on year in the first quarter of current fiscal,” a press release from Arvind informed. Consolidated EBIDTA stood at 2 per cent at Rs 227 crore in the reporting quarter as against Rs 223 crore in the corresponding quarter of the previous fiscal. However, profit after tax, before exceptional items in the quarter under review slipped 33 per cent to Rs 61 crore as compared to Rs 91 crore in the first quarter of earlier fiscal, on account of account of higher tax provision. Net profit after providing for exceptional items amounted to Rs 3 crore, due to Rs 58 crore  compensation paid for retrenchment of workers.

CFO Jayesh Shah said, "The performance for the quarter is in line with our expectations; high growth in brands and retail business with movement towards profitability and steady growth in textiles business with improvement in bottom-line.” For the full year, Arvind expects revenue growth to be between 14-15 per cent with improvements in margins in its Brands and Retail segment. Arvind has carved out an aggressive strategy to verticalise its current operations by setting up world-scale garmenting facilities and offering a one-stop shop service, by offering garment packages to its global and domestic customers. With its growing global footprint, Arvind has carved a niche with brand names like Arrow, Flying Machine, USPA, New Port, Mega Mart and The Arvind Store. Arvind is present in major segments like fabrics, garments, advanced materials, chemicals & dyes, retail, engineering, real estate, sustainable agriculture and telecom.

SOURCE: Fibre2fashion

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Parliament must pass bills vital for economic growth: CII

The virtual washout of the monsoon session of Parliament has triggered concerns among captains of Indian industry. The logjam in Parliament has meant that the government has not been able to pass two of the most important bills - the GST and the Land Bill which are of vital interest to the industry. The Confederation of Indian Industry (CII) has called for urgent passing of legislations vital to India's economic growth. CII president Sumit Mazumder said, “Every session of the Parliament is important and each one of us would like to see important issues discussed, deliberated and addressed. Today, key Bills including GST, the Right to Fair Compensation and Transparency in Land Acquisition, Resettlement and Rehabilitation (Second Amendment) Bill, the Electricity Amendment Bill, etc are pending discussion and passage. We would sincerely wish that attention can be devoted to these and other important economic issues. These are collective responsibilities. The pace of reforms that we have seen in the last two sessions of Parliament should have continued unabated in this session too”

Industrialist and former CII head Adi Godrej said, “The GST model has evolved as a consensus through detailed discussions of the Empowered Committee of state finance ministers over several years. The relevant bill for its introduction must be passed in this Parliamentary session if this vital tax reform is to be introduced by April 1, 2016. The GST is one of the most critical reforms for India as it will create a smooth and efficient market, lower costs and raise tax revenues. We believe it would add as much as 2 percentage points to the rate of growth, which will help generate millions of new jobs. But for this the Parliament must transact business.”

Chairman of CII Task Force on Infrastructure, Vinayak Chatterjee echoed similar views. “The Parliament logjam over the last few weeks has certainly raised concerns over pro-active legislative business in the monsoon session. Crucial bills like the Amendments to the Electricity Bill 2014, Goods and Services Bill, Commercial court and commercial appellate and commercial division in High Court Bill and the Land Bill are pending for approval in the House affecting policies and investment decisions. Delays therein are affecting economic issues down the line, such as rise in bank non-performing assets, investment sentiment, inadequate uptick in the capex cycle and inadequate job creation.” Protests by the opposition Congress party over the alleged involvement of External Affairs Minister Sushma Swaraj in facilitating the issuance of travel documents for former IPL chief Lalit Modi who is wanted by the ED, has led to the stalling of Parliament. The Congress has been demanding the resignations of Swaraj and Rajasthan chief minister Vasundhara Raje over Lalitgate and of Madhya Pradesh chief minister Shivraj Singh Chouhan over the Vyapam scam.

SOURCE: Fibre2fashion

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Zimbabwe clothing and textile industry targets 100pc growth by 2020

Government last week announced several austerity measures meant to resuscitate the economy which include new levies and taxes on imported groceries, fertilizer and a ban on the importation of second-hand clothes. Following Government's directive to ban all second-hand clothes on the local market, Zimbabwe Clothing and textile manufacturers are eying 100 percent capacity utilization by 2020. Speaking on the sidelines of a tour of the company by the Office of the President and Cabinet, Zimbabwe Clothing Manufacturers' Association chairman Mr Jeremy Youmans said that clothing manufacturers welcome Government's directive to ban second-hand clothing as this will provide a boon to their operations. They welcome the stance taken by Government because the ban is going to create more opportunities for them as an industry. They have now set a 100 percent capacity utilisation benchmark in the next five years.

Presently, the entire industry is operating at 45 percent capacity and obviously some companies face difficulties but they are always optimistic of reaching that milestone. They are calling for flexible labour laws as well for them to achieve their goal, said Mr Youmans. Recapitalisation in the clothing and textile industry is not a big issue because most of their machinery is not expensive to re- place. According to Mr Youmans, the whole clothing industry requires about $5 million to replace old machinery and addressing working capital constraints. ZCMA represents more than 100 registered companies in the formal sector. With clothing and textile companies exporting about 60 percent of their production, the clothing and textile industry is targeting a 400 percent growth in employment figures to about 40 000 people by 2020

SOURCE: Yarns&Fibers

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John Kerry says Pacific trade pact must stay on track

U.S. Secretary of State John Kerry expressed the need to forge ahead to “finish the job” on an ambitious Trans-Pacific Partnership (TPP) during a meeting with Vietnam’s president on Friday, a week after lengthy talks in Hawaii ended with no deal. Pacific Rim trade ministers failed to strike an agreement last week to free up trade between a dozen nations after disputes on issues ranging from autos and dairy trade to monopoly periods for next-generation drugs. “One of the very important things now is for us to be able to stay where we are on the TPP negotiations, not to slide backwards, but to finish that job in which Vietnam is very much an important contributor to,” Kerry told President Truong Tan Sang in Hanoi.

The Pacific pact is a “mega regional” accord set to cover 12 countries with a combined GDP of $28 trillion, among them Australia, Japan and the United States. In Asia, it also includes Vietnam, Malaysia, Singapore and Brunei. The U.S.-inspired TPP would connect those economies by cutting trade barriers and harmonising standards covering two-fifths of the world economy and a third of global trade. TPP trade ministers discussing the pact, which would stretch from Japan to Chile, have said an agreement is within reach, despite last week’s failure to conclude.

Vietnam’s export-dominated economy is widely seen as one of the biggest potential beneficiaries of the TPP because of its vast commodities resources, cheap labour and growing manufacturing clout, especially in textiles, footwear and cellphones. Speaking in Singapore on Monday, Kerry said the talks were near completion and called the TPP “a tangible means of demonstrating America’s firm and enduring commitment to the security and prosperity of the Asia-Pacific.” The White House said on Monday U.S. negotiators were working to find common ground with other countries, but also wanted the best deal for Americans and one that would meet President Barack Obama’s criteria.

SOURCE: The Financial Express

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Rules of Origin may be a hurdle for EU-Vietnam FTA

Europe's Foreign Trade Association has put a question mark on the EU's trade and investment agreement with Vietnam. The agreement is the most ambitious and comprehensive free trade agreement (FTA) that the EU has ever concluded with a developing country. In a statement, Christian Ewert, Director General of the Foreign Trade Association (FTA) welcomed the deal saying the agreement would certainly boost bilateral exchange in goods and services and would bring substantial gains for European retailers sourcing from and investing in Vietnam. But he also raised a red flag over the agreement designed to bring the EU closer to the ultimate goal of reaching an inter-regional deal with ASEAN. “There is, however, a discrepancy between theory and practice. While on the paper, 99 per cent of all tariff lines will benefit from the elimination of duties, many European companies will not be able to take advantage of the deal because of its rigid rules of origin scheme. Today, most of the fabric for garment production is imported to Vietnam and not manufactured within the country as stipulated by the rules of origin of the deal. Consequently, clothing goods from Vietnam will very often not meet the requirements for preferences and will have to be imported under normal conditions. This is more than a cosmetic error.” Ewert said the Foreign Trade Association supports the high level of ambition set by the EU and Vietnam to intensify dialogue and cooperation on sustainability aspects. “We will seek to take an active role in the Domestic Advisory Group which is assessing the implementation of the sustainability chapter of the agreement,” he said.

SOURCE: Fibre2fashion

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Manufacturers of personal protective clothing focus on comfort, style and sustainability

Several trends have emerged in recent years, which are having a major impact on the personal protective clothing industry, according to a recent report from the business information company Textiles Intelligence. These trends include: a widening perception that comfort is a necessity rather than a desirable option in an item of clothing; growth in the importance of design and fashion; and a strengthening of commitment to sustainability throughout the supply chain.

Looking ahead, it is expected that growing numbers of companies in the personal protective clothing industry will commit themselves to running their businesses in a more sustainable way. To an ever-growing extent, workers are demanding that their protective clothing not only safeguards their health in the workplace but is also comfortable to wear. Comfort was once given scant priority in the design of personal protective clothing but today it is viewed as critically important. Consequently, the industry has been making strenuous efforts to find the right balance between comfort and the need for protection. Given the importance of maintaining wearer comfort, the use of high performance fabrics with moisture management and thermal regulation properties has become widespread and such factors have become powerful selling tools. Employees in a broad spectrum of industries and services are demanding increasingly that their workwear is fashionable and stylish. Interestingly, it has been argued that employees are likely to be more effective and have a greater motivation to work if they are wearing protective clothing, which is comfortable and stylish. Also, there is evidence that an employee is more likely to wear a protective garment or accessory if the item is fashionably designed. Companies engaged in the supply of personal protective clothing are therefore placing increasing emphasis on creating innovative designs in a bid to encourage greater compliance with health and safety regulations.

Furthermore, much effort in the personal protective clothing sector is being focused on the establishment of practices, which are more environmentally friendly. As part of this effort, companies throughout the supply chain, from the sourcing of raw materials to retail selling, have eliminated, or at least reduced, their use of materials which are considered to be potentially harmful to humans or the environment. In fact, many companies in the industry have shown a greater willingness to switch to materials, which may be less effective in terms of performance but are more environmentally sustainable. The drive for sustainability has fuelled a surge in the use of post-consumer waste in the production of personal protective garments. Also, it has led to a slow but gradual shift away from materials based on petroleum towards those based wholly or partly on plants. Also, there is likely to be an acceleration of demand for personal protective clothing items, which perform a multitude of functions and provide durability without sacrificing comfort and aesthetics. As a result, innovation in the industry will focus heavily on enhancing comfort properties, creating more fashionable clothing styles, and producing materials using sustainable raw materials and processes. However, overall growth in the market will ultimately be dependent on expansion in employment. This, in turn, will depend on demographic changes, levels of activity in key industries, and spending on services such as law enforcement, the military and public health care.

SOURCE: Innovation in Textiles

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