FW
USL CPSC recommends exclusion of spandex from flammability testing
In its review of flammability standards for clothing textiles, the US Consumer Product Safety Commission (CPSC) has proposed inclusion of spandex to the list of fabrics exempt from testing under the flammability standard. The agency is currently reviewing the dry cleaning procedure specified as part of the process for refurbishing plain and raised textile fabrics. The existing procedure calls for the solvent perchloroethylene which is one of the first 10 substances subject to risk evaluation under the reformed TSCA.
The CPSC is also reviewing the testing burden and cost of performing this dry cleaning procedure, and has asked for information on potential alternatives. General recommendations for how the agency can reduce the cost of testing requirements associated with it flammability standard for clothing textiles are also being accepted.
Jeanologia to showcase new production model at Bangladesh Denim Expo
Jeanologia, leader in the development of sustainable and efficient technology, will present its new technological production model at Bangladesh Denim Expo. Capable of simplifying and streamlining workflow ‘from lab to bulk’, this innovative model is based on simplicity, efficiency, reproducibility. The process starts by selecting the correct fabric using the Light Sensitive Fabric Test. From there starts the design process using e-Mark 5, the most advanced laser design software; for the production to be completed with laser, G2 ozone and e-Flow. And lastly, it measures the environmental impact of the garment with the help of the EIM software.
Jeanologia, through this method, brings together software and hardware, facilitating the production process for businesses in Bangladesh. It integrates the whole technological process at one site allowing greater efficiency, obtaining a product that is fashionable as well as being ethical and environmentally responsible.
ISS to rebrand as Impressions Expo in January 2020
Imprinted Sportswear Shows (ISS) will rebrand as Impressions Expo, beginning with its first trade show of the year set for January 2020 in Long Beach, California. Owned and operated by Emerald Expositions, ISS is dedicated to the imprinted and decorated apparel industry comprising five annual shows in different regions of the U.S.
The show’s new name is meant to further align the brand with Impressions magazine, a B2B publication servicing the decorated apparel industry. All events under the new Impressions Expo name will continue to feature the same product categories, yet under a name that now encompasses the entirety of the decorated apparel industry, from raw goods and fabrics to the finished packaged product.
Screen printing, embroidery, direct-to-garment printing, heat transfers and promotional products are a few of the product categories the trade show serves.
Attendees will notice the first design changes taking effect at Impressions Expo – Long Beach’s pre-show registration, opening the end of August. ImpressionsExpo.com, the show’s new website, will also be launching soon.
GHCL posts net revenue of Rs 3,385 crore in FY19
GHCL, India’s leading chemical and textile company, posted a net revenue of Rs 3,385 crore in the year ended March 2019, registering a growth of 16 per cent compared to net revenue of Rs 2,917 crore in the previous financial year. Earnings before interest, depreciation and taxation (EBIDTA) grew by 21 per cent to Rs 784 crore as against Rs 649 crore in FY 2017-18.
During the 12-month period, profit before tax grew by 30 per cent to Rs 541 crore from Rs 415 crore in FY18. Business segment-wise, GHCL’s Home Textiles business grew by 15 per cent to Rs 1,202 crore in FY19 as compared to Rs 1,046 crore in FY18. While its Inorganics Chemicals division grew by 17 per cent to Rs 2,182 crore in FY19 as compared to Rs 1,872 crore in FY18.
For the fourth quarter (Q4) of FY19, the company’s net revenue grew by 26 per cent to Rs 915 crore as compared to Rs 726 crore in the corresponding quarter ended March 31, 2018. EBIDTA grew by 31 per cent to Rs 241 crore as against Rs 185 crore in the corresponding quarter of the previous year. Net profit, i.e. profit after tax, grew by 44 per cent to Rs 119 crore as against Rs 82 crore in the corresponding quarter of the previous year.
Textile traders in Bhilwara seek GST relief, power subsides
Textile traders in Bhilwara have demanded minimal GST taxes for all raw clothing categories including textile, polyester yarn, wool and other materials. Further, textile traders have also sought tax sops for entities engaged in the business for more than 20 years. Ambaji Textile Market Association has recommended a uniform 5 percent rate for cloth textiles and yarns.
Bhilwara produces almost 40-45 per cent of the total yarn manufactured in India. But after GST was introduced, cloth is taxed at 5 per cent whereas yarn is taxed at 12 percent. Input credit is also not available to the businesses. Traders have also sought subsidies in their electricity bills as the power supply situation in the city is quite bleak. They want assurances from both the centre and states that their issues will be looked into.
Brands put pressure on suppliers, says Human Rights Watch
Retailers squeeze their suppliers in Bangladesh, Cambodia, India, Myanmar and Pakistan so hard financially that suppliers cut costs in ways that exacerbate workplace abuses and heighten brands’ exposure to human rights risks, says Human Rights Watch.
Suppliers across Asia face relentless pressure from international retailers to meet an enormous demand for poorly forecast garment orders. Companies do not adjust pricing for local wage increases, shortening the due dates for shipments, and delaying payments to suppliers — all of which worsen labor abuses in factories. Among other pressures, retailers also impose unfair penalties for missed production deadlines.
Brands try to drive down the price without accurately costing for labor and social compliance. It takes a toll on workers because factories begin to make them work excessive overtime. In 2018, nearly 40 per cent of retailers were late to pay their suppliers and 60 per cent of suppliers were not given incentives to comply with their buyers’ public labor standards. Brands push suppliers for low prices, short lead times, and maximum flexibility. In order to drive down costs and meet short deadlines, suppliers hide excessive overtime hours, suppress wages, and employ child labor, among other strategies that increase human rights risks.
China’s viscose staple fiber capacity increases
In 2018, China's viscose staple fiber production capacity increased by nearly 7,00,000 tons. Due to the increase of production capacity, supply in the viscose staple fiber market is exceeding demand, leading to a fall in price.
From January to March 2019, the production of viscose staple fibers was about 9,50,000 tons, and the inventory in the first quarter was about 4,00,000 tons. From January to March 2019, the market price of viscose staple fibers fell by 12.73 per cent. Viscose staple fibers are experiencing a great shock of energy and price rebalancing after the full release of production capacity.
The viscose staple fiber market price in China is expected to rebound in the second quarter of 2019. Viscose staple fibers factories need to adjust their start-up rate reasonably. Downstream yarn factories can also actively participate in the market. In this way, the viscose staple fiber industry is expected to step out of the deep loss situation. Viscose staple fiber production in China has managed to offset the year-on-year drop in polyester and acrylic staple fiber production. But polyester staple fiber production still makes up the bulk of overall staple fiber production in China. Acrylic staple fiber production is expected to account for 4.4 per cent of total staple fiber production in China.
CPTPP helps Vietnam’s exports to Canada
The Comprehensive and Progressive agreement for Trans-Pacific Partnership (CPTPP) will open up Canadian market for Vietnamese goods. The CPTPP will open doors for many processed and manufactured products which are Vietnam’s advantages like textiles and garments, footwear, wood and aquatic products.
Canada is one of the CPTPP members with the highest market-opening commitments. Under this pact, it will cut tariffs on 95 per cent of imports down to zero per cent, and that covers 78 per cent of Vietnam’s total export revenues from Canada. Though this market is also one of the three CPTPP members with which Vietnam has not yet signed a bilateral trade agreement, the two sides’ export structures do not compete with but are complementary to each other. All of Vietnam’s aquatic exports to Canada benefit from a zero per cent tariff. The North American market has also reduced import tariffs on wooden furniture, tea, pepper and cashew nut to zero per cent.
For Canada, this agreement will help reinforce relations with new free trade agreement partners like Vietnam and improve Vietnamese consumers’ awareness of Canadian goods. The CPTPP will also facilitate Canadian companies’ investment in and provision of technical support for Vietnam within the official development assistance framework so as to help local firms, especially those run by women.
China’s March exports up 21 per cent
China’s March exports increased 21.3 per cent year-on-year. Foreign trade remained stable in the first quarter. This is directly related to the stabilization of the domestic economy. In 2018, private enterprises contributed more than 50 per cent to China’s import and export growth. In the first quarter of this year, private enterprises played an increasingly prominent role in promoting China’s foreign trade. The total import and export volume of China’s private enterprises in the first quarter increased 9.9 per cent over the same period last year. Private enterprises account for 40.6 per cent of China’s total foreign trade.
Another manifestation of China’s foreign trade and even the whole Chinese economy in improving quality and efficiency is the increasing competitiveness of products with high technological level and added value, such as automobiles and mobile phones. The export volume of mechanical and electrical products accounts for 60 per cent of China's total exports, more than three times as much as that of clothing, textiles and other labor-intensive products.
Though the growth rate of China’s foreign trade in the first quarter was lower than that in the same period last year, it has been achieved at a time when global trade is in a downturn and trade frictions continue.
GST inflicts losses on Bhilwara
Bhilwara in Rajasthan produces almost 45 per cent of the total yarn manufactured in India. With GST the entire system had to be computerized and price of goods went up 20 per cent leading to massive losses. More than 20,000 people are employed in the Rs 700 crore industry in Bhilwara, considered to be one of the textile hubs of India. Traders want minimal GST for all raw clothing categories including textiles, polyester yarn, wool and other materials. Further, textile traders have also sought tax sops for entities engaged in the business for more than 20 years.
Power supply is a major issue and no subsidies are available. Several stores in the textile market of Bhilwara have downed shutters. Many businessmen could not sustain in the textile industry and have now shifted to industries like marbles and granite. Most shops in the erstwhile textile market belong to finance companies and broking houses. Looking at the opportunity presented during the post-GST slowdown, dozens of alternate financing firms have opened up in Bhilwara.
The decline started with demonetisation in November 2016, which reduced purchasing power for a few months. It left thousands jobless for a while. The industry had barely recovered from the shock of demonetisation when GST was introduced, slowing growth further.












