Gokuldas Exports has commenced commercial production at its new manufacturing unit in Tumkur, Karnataka. The unit will add about 4.5 per cent to its current capacity. The company currently operates at peak utilization levels and has a robust order book for the next six months. It plans to spend Rs 120 crore over the next two years to generate incremental revenue worth Rs 450 crore. The company also aims to augment its capacity over the near term, to meet demands and clear production backlog from the first quarter of FY2021-22. As per the annual report, the company anticipates substantial revenue growth in FY2021-22 in line with these trends.

Indian textile exports are at the threshold of a strong growth on the back of a vibrant retail stores and e-commerce demand in key markets like the US and Europe. India’s share in global apparel trade has so far been small. It can now look for more growth opportunities with large brands realigning their supply chain to de-risk from the effect of COVID-19, and looking at a more balanced approach for sourcing.

The Indian government has also extended the Rebate of State and Central Taxes and Levies (RoSCTL) up to FY2023-24, to provide clarity to exporters and push for growth in the sector over a longer-term period. The Production-Linked incentive (PLI) scheme could boost also growth in the industry.

Egypt's clothing trade has improved significantly and exceeds EGP 300 billion annually. Mohamed Abdel Salem, Chairperson, Ready-Made Garments Chamber, Federation of Egyptian Industries attributes this to the decline in imports due to decree No. 42 which obligated importers to register with the General Organization for Export and Import Control (GOEIC). Also, a protocol of cooperation has been signed recently between the Ready-Made Garments Chamber and Gahez Digital Marketing

These factors helped local companies to improve their products and manufacture high-quality clothing to cater to the needs of the market, Salem adds. The Federation of Egyptian Industries (FEI) is one of the country’s largest employers’ associations, with 20 industrial chambers as members, representing over 60,000 industrial enterprises out of which more than 90 per cent belong to the private sector accounting for more than 7 million workers and 20 per cent of the national economy.

The government is likely to approve Commerce and Industry Ministry’s proposal to extend the Indian Footwear Leather and Accessories Development Program (IFLADP) till 2025-26 with Rs 1,700 crore investments. Aimed at boosting leather production, exports, and create new jobs, the program would involve six components — Sustainable Technology and Environmental Promotion with a proposed outlay Rs 500 crore; integrated development of the leather sector with an outlay Rs 500 crore; establishment of institutional facilities with Rs 200 crore; Development of mega leather footwear and accessories cluster with Rs 300 crore; promotion of Indian brands in the leather and footwear sector with Rs 100 crore; and development of design studios with Rs 100 crore.

Under the 'Sustainable Technology and Environmental Promotion' component, the program would provide assistance for setting up a common effluent treatment plant; and under the Integrated Development of the Leather Sector, it would undertake modernization/capacity expansion/ technology up-gradation projects. Similarly the 'Establishment of Institutional Facilities' component, support could be provided for setting up of new infrastructure and upgradation of requisite infra of the existing campuses of Footwear Design and Development Institute (FDDI).

Under the 'Mega Leather Footwear and Accessories Cluster Development' sub-scheme, graded assistance is proposed for land development, social infrastructure, production facilities, and R&D (research and development) support. For brand promotion, support could be provided to promote at least 10 Indian brands in the international market. Further, under the component of 'Development of Design Studios', assistance could be given to develop 10 studios.

At the recent ‘Be Inspired’ webinar series held by the American Chamber, Aroon Hirdaramani, Director, Hirdaramani Group noted that the Sri Lankan apparel sector can achieve $8 billion worth of garment exports by 2025. As per a Daily News report, Hirdaramani highlighted with additional local value addition through ventures such as the fabric park in Eravur, Sri Lanka was well placed to grow, he said. The government’s vaccination drive is helping BOI companies remain operational. Over 90 per cent of the apparel sector workforce has received the first jab with over 70 per cent receiving the second jab.

To create a more stable business environment, the Hirdaramani Group has decided to collaborate with a few high-value partners, He acknowledged that the policymakers were in dialogue with the industry and the significance of the trading scheme was understood. Jeevith Senaratn, Senior Manager, Star Garments Group added, the industry’s export figures are still 10 per cent below the 2019 figures. Hasib Omar, Director, Brandix Clothing Company highlighted that the industry was highly polluting and that would be a future pain point for clients.

Shirendra Lawrence, Executive Director, MAS Holdings added that the new production processes might be causing additional strain on the workers.

Textile traders in Surat are worried as payments of about Rs 4,000 crore from Afghanistan are stuck due to Taliban takeover of the country. Champalal Bothra, General Secretary, Federation of Surat Textile Traders Association says, exporters are not sure when they will get their payments. The Federation of Indian Export Organisations (FIEO) has advised exporters and importers to wait and watch before taking any step.

India mainly exports Punjabi suits and dupattas manufactured in Surat to Afghanistan and Pakistan. Garments worth at least Rs 100 crore are exported every month to Afghanistan via Pakistan or Dubai. Raju Bhatia, a broker working for multiple exporters says, in the textile market, the credit period is up to three months and in goods supplied to Afghanistan via Pakistan or Dubai, the payment is received in three to four months.

However, due to the unrest, payment is several hundred crore of many exporters in stuck. The industry has furthered suffered because over Rs 100 crore worth of textile products exported monthly to Afghanistan has now stopped.

A recent report by market researcher Kantar accuses Indian consumers of being profit oriented and ignoring their environmental commitments. Titled ‘The Asia Sustainability Foundational Study,’ the report surveys 10,000 consumers in nine countries and over 1,000 big Indian cities. It reveals, though 77 per cent of respondents are willing to invest in sustainable companies, their intentions rarely translate into actions. Around 84 per cent focus only on financial gains rather than saving the planet from environmental hazards. The report terms this phenomenon as the ‘value-action gap’.

Consumers abstain from spending on abstract causes

Samit Sinha, Managing Partner, Alchemist Brand Consulting, elaborates on this phenomenon by highlighting the purchases of most Indian consumers are price-driven. They do not prefer spending on distant and abstract causes. They are unlikely to shift their manufacturing strategies unless policies are made to make sustainability affordable. However, Sanjay Sarma, Founder, SSARMA Consults, a boutique branding and communications advisory believes a law making sustainability mandatory would invite more resistance from brands. To make sustainability more affordable, brands needs to change the way they look at both. They also need to invite more conversations on this topic, adds Sarma.

Incorporating sustainability into brand consciousness

Though fashion and lifestyle brands start their sustainability journey with good intent, they eventually compromise on their values as economic considerations and market forces take precedence, adds Sarma

Brands therefore, need to change their thinking patterns and incorporate sustainability into their consciousness. The onus to create awareness and promote sustainability lies on them, adds Shishir Goenka, a Mumbai-based exporter of organic cotton clothing, who launched a sustainable brand called Do U Speak Green? for the domestic market in 2009. However, the brand didn’t survive for long as the market was not yet ready for sustainable clothing. Hence, large fashion brands need to up their sustainability quotient and increase contributions towards climate-control.

Published by the International Cotton Advisory Committee, the Cotton This Month report informs, estimate for world cotton production for the 2021/22 season has been revised to 24.9 million tonne, with area under cotton also revised to 32.8 million hectares.

Cotton prices are trending upward with the Cotlook A index season average at 101.34 cents per lb. Cotton prices are also high in China, with the CC Index averaging 126 cents/lb since the season began.

Opening of economies and an increase in consumer demand that occurred when the vaccinations began spreading across the globe indicate that consumption doesn’t appear to be slowing down.

With demand exceeding production, ending stocks are expected to decline for the second year in a row to stand at 19.7 million tonne in 2021/22, 5 cent lower than the previous season.

As a result of these bullish factors, the Secretariat’s current price forecast of the season-average A index for 2021/22 ranges between 76 cents to 126 cents, with a midpoint at 98.20 cents per pound.

Apparel imports by the US increased 14.9 per cent year-over-year to 2.52 billion square meter equivalents (SME) in July 2021, as per the data released by the Commerce Department’s Office of Textiles & Apparel (OTEXA). An Apparel Resources report reveals, though US’ apparel imports from Vietnam increased by 22.74 per cent to 2.6 billion SME during the first seven months of the year, they declined 8 per cent to 359.72 million SME in July compared to a year earlier. Imports from Cambodia declined by 29 per cent to 85.61 million SME in the month compared to July 2020. Indonesia’s July shipments declined 7.9 per cent to 64 million SME, while imports from the country for the year so far rose 10.17 per cent to 601 million SME.

Imports from China increased 21.6 per cent to 1.04 billion SME in July compared to a year earlier and by 40.06 per cent to 5.48 billion SME year to date. Shipments from Bangladesh rose 35.1 per cent in July 2021 to 197.45 million SME compared to July 2020 and by 36.86 per cent to 1.42 billion SME year to date. India’s exports surged by 34 per cent to 79.92 million SME for the month and 47.2 per cent to 729 million SME for the year to date, while imports from Pakistan jumped by 49.3 per cent to 73.85 million SME in the month and by 50.02 per cent to 505 million SME year to date.

The US Census Bureau and Bureau of Economic Analysis reported that the goods and services deficit declined to $70.1 billion in July from $73.2 billion in June.

Cotton demand in India is expected to remain strong over the next 6 to 12 months owing to strong recovery in global apparel trade and retail demand. This could support a further reduction in global cotton stocks, industry experts believe. Cotton prices increased 43 per cent in the first five months of 2021-22 compared to the same period last year.

The average cotton price during April-August increased from Rs 9,963 from a year earlier to Rs 14,225 per quintal, says Nidhi Marwaha, Vice President and Sector Head, Corporate Sector Ratings, ICRA. Prices are estimated to average 40-45 per cent higher year-on-year in the first half of this fiscal, adds Marwaha. Along with strong local demand for cotton, strong export demand for yarn and cotton is also a key driver for bullish sentiments in cotton trade

As against the normal consumption of 32 million bales year, the cotton consumption in the current year has increased to about 36-38 million bales, adds Pradip Jain, President, Khandesh Ginning and Pressing Association, an association of cotton traders from Maharashtra, the second-largest producer of cotton in the country.

There are apprehensions that delayed cotton sowing in several parts of the country this year because of the monsoon patterns could affect crop quality and yield, despite overall acreage reaching near normal levels towards the conclusion of the sowing season.

Organizer of Munich Fabric Start and Blue Zone, Munich Fabric Start Exhibitions GmbH has launched digitization service FABRIC.iD to support digital processes in the first step of the textile supply chain. As per a Knitting Industry report, the service employs the innovative texture and colour scanners xTex and can:scan from software companies Vizoo GmbH and Caddon Printing & Imaging GmbH, to capture all the details of the texture and translate them into virtual data.

The service was presented during Munich Fabric Start, which took place from August 31- September 02, 2021 in Munich. Visitors had an insight into the individual steps in the process and experienced the digitisation process live. The process expands Munich

can:scan and xTex offer a unique solution for this.. The software enables exact color detection of textiles and the creation of color-fast digital patterns, so that interactive approval processes can be carried out online and 80 per cent of the previous time required for analogue processes can be saved.