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The cotton stakeholders across the textile value chain have been demanding reintroduction of the Technology Mission on Cotton in a revised format with two mini missions focusing on technology development and technology transfer under the Ministry of Agriculture and another two mini missions focusing on clean cotton and branding Indian cotton textile products.

The Technology Mission on Cotton was announced in 1999 and closed in 2012. It made India the largest cotton producer and net exporter in the world. The Ministry of Textiles has already submitted a proposal to allocate funds to implement clean cotton and branding Indian cotton textile products missions. Additionally, Southern India Mills’ Association (SIMA), has sent a representation to the Union Textile Minister seeking her intervention by empowering the Cotton Corporation of India (CCI) to enforce certain regulations to curb the malpractices resorted to by certain ginners.

It has suggested empowering the textile commissioner, the secretary, textiles committee, the Director, TRAs, CIRCOT, and CMD of CCI to make periodical inspection in ginning factories and take necessary action on the factories resorting to malpractices. Textiles committee should conduct periodical audits and recognise three to five-star rated ginning factories by posting the details on the CCI website and CCI should introduce the 16-digit RFID code for individual bale quality parameters on par with USDA that practises the same since 1991.

 

Friday, 30 November 2018 13:02

Tirupur awaits ROSL refund

Exporters in Tirupur have been awaiting their ROSL (Rebate on State Levies) refunds for three months. For the Tirupur knitwear cluster alone, the pending ROSL claims (1.7 per cent free on board worth exports) work out to be Rs 105 crores. Settlement of pending claims would be helpful to plants at a time when the units are operating under wafer-thin margins and struggling to sustain in the price-conscious global market. These have to compete against countries which are enjoying duty-free status in the European Union and the United States markets.

Under the ROSL scheme, a rebate on state levies is provided such as value-added tax and central sales tax on inputs, including packaging, fuel, and electricity duty, accumulated through various stages of production, from yarn to finished garments. For exporters, the scheme offers enhanced duty drawback cover on inputs.

The scheme takes into consideration all taxes paid by exporters like VAT, electricity duty, octroi, entry tax etc. The ROSL rate for garment items exported varies from 2.65 per cent to 3.9 per cent.

Tirupur exporters also want India to expedite the free trade agreement with Russia, which has given Bangladesh the duty-free garment facility, and they hope India can also avail of this facility.

Sourcing practices of clothing retailers in the UK have come under scrutiny. Online clothing retailers in the UK such as Primark, H&M, and Zara get 21 per cent of their stock from China, 14 per cent from Bangladesh and India and 12 per cent from Vietnam. All these four e-tailers have manufacturing facilities in the UK.

Fashion e-tailers Boohoo, Asos and Missguided were facing scrutiny for below-legal wages and unethical conditions for clothing manufacturing workers. Missguided has reduced its presence in Leicester, after recognizing its inability to satisfactorily audit the factories it was using. Having started this year working with 35 manufacturers at 80 different sites, the company now sources from 12 suppliers at 20 factories.

There have been allegations Boohoo underpays workers and promotes unsustainable and non-environmental consumer buying patterns. In the meantime, retailers in the UK like John Lewis, Marks & Spencer and Next have agreed to support moves to stop modern slavery in the textile trade.

Global fashion brands have increased the overall social and environmental transparency of their sourcing practices by just five per cent since last year. While many have taken widely publicized steps in recent years to ensure the safe working conditions and living wages of their workers, a lot remains to be done.

There are at present, over 30 textile units and workshops operated by Vietnamese in the province of Vladimir and other neighbouring districts. These facilities have given jobs to hundreds of Vietnamese all over Russia. Do Van Tien’s workshop in Sarlanter in Vladimir employs ver 65 Vietnamese workers. These workers have been working on contractual basis.

Started a decade back, the unit specialises in making sports apparels under the brand name Sarlanter. Tien’s unit has also been generating good revenue thereby widening the scope of creating more job opportunities. Besides offering good working and living conditions, the facility also encourages workers to play sports and improve their communication skills.

 

Registration at the International Sourcing Expo Australia and co-located Footwear & Leather Show Australia increased 10 per cent from last year, with more than 4,000 visits from large fashion retailers to niche fashion brands, start-up labels, online outlets and fashion designers looking to make valuable connections with potential and existing suppliers.

Buyers and production managers toured the world’s apparel, accessories, texiles and footwear suppliers at the Melbourne Convention and Exhibition Centre over three days from November 20-22, 2018. Visitors met with more than 720 manufacturers and agents exhibiting at the expo from 19 countries – China, India, Pakistan, Bangladesh, Hong Kong, Indonesia, Vietnam, Malaysia, Singapore, United States, Fiji, Australia, Turkey, South Africa, Taiwan, Nepal, Serbia, Italy, and Thailand.

A highlight of the event was the launch of Global Runway, where emerging and established designers from Indonesia, China and Australia showcased their collections. These shows were supported by Australian Fashion Council and enjoyed by strong crowds across two days. The expo’s Global Sourcing Seminar series led by industry experts and facilitated by fashion commentator and journalist, Patty Huntington, provided valuable market insights and business tips. From international denim trends, expert sourcing tips, legal information, ethical sourcing advice, help for fashion start-ups, international fashion and footwear insights and more, the seminar series had something for all industry professionals.

 

Matrix Clothing, in its first overseas venture for garment manufacturing, recently bought Jordan-based Indo-British Garments. The company already has a presence in Bangladesh and Vietnam for zip and leather manufacturing respectively. It invested $6 million in Jordan. Four decades old Matrix Clothing produces knitted polo shirts and embellished ladies garments. With worker strength of nearly 5,000 people, the company has a turnover of over Rs. 400 crore and it works with many globally renowned fashion brands and retailers.

Matrix Clothing is also investing in Ranchi. Excluding working capital, the company is investing nearly Rs 26 crore in the state which will be increased in the future. So far, the company had a training unit there and pilot plant for the production just started. By late 2019, it will have the fairly large facility of around 500 machines.

 

Invista has launched a new Lycra Free F!t technology. The new material lends greater comfort to denim and woven fabrics while allowing apparel to maintain its shape without the potential loss of recovery more common in softer stretchy material. What makes this technology unique is that it combines two opposing concepts—soft stretch and excellent shape retention.

When creating Lycra Free F!t, Invista implemented its patented and patent-pending technologies in yarn, textile processing and fabric structure. Using Lycra Dual FX yarn, the fabrics are manufactured through Lycra Free F!t technology, which includes materials treated with Invista’s proprietary formula, and are woven according to the company’s specific processes.

Last year Invista conducted an extensive consumer research project across five countries and found the main issue with stretch jeans was how they lost their shape as people moved throughout their daily activities. Invista encourages consumers to look for styles with Lycra dual FX technology.

Invista’s Cool Max Natural Touch technology blends two types of Cool Max fiber with cotton and Lycra, which remains cool and yields a soft hand. With leading brands including Lycra, Coolmax and Cordura, Invista is one of the world’s largest integrated producers of chemical intermediates, polymers and fiber. The company’s technologies for nylon, spandex and polyester are used to produce clothing, carpet, air bags and other everyday products.

 

India’s exports to Canada have increased at three per cent year on year. However, over the last five years India’s share in Canada’s textile and apparel imports has declined. Apparel has a 50 per cent share in India’s textile and apparel exports to Canada. This is followed by home textiles and fabrics having a share of 50 per cent and eight per cent respectively.

Apparel is the largest imported category by Canada, representing 66 per cent of total textile and apparel imports. This is followed by home textiles, fabrics and others with a share of 16 per cent, six per cent and five per cent respectively. China is the largest supplier to Canada, accounting for a 34 per cent share, followed by the US and Bangladesh with a share of 16 per cent and eight per cent respectively. The top 10 suppliers account for 85 per cent of textile and apparel imports by Canada.

Over the years, apparel production in Canada has fallen while imports continue to increase. So India has a huge scope for expansion of apparel exports to Canada. To cater to this demand, Indian apparel manufacturers need to undertake suitable investments on product innovation. Focus on technology enhancement and manufacturing excellence will act as a key mantra for raising the trade flow between the two countries.

Cone Denim has partnered Archroma for One Way. Cone Denim is a mill with expertise in denim production and indigo dyeing. The mill’s initiatives include: reductions in water consumption and new water treatment techniques, and the design of authentic denim using sustainable components such as natural indigo and different types of post-consumer recycled content.

One Way is a tool offered by color and specialty chemical company Archroma. Launched in 2012, it helps mills and brand owners evaluate and quantify the environmental impact of various manufacturing inputs including chemicals, processing techniques and raw materials. The goal of One Way is to quickly determine the overall sustainability of a product.

The partnership combines Cone’s expertise in denim production and indigo dyeing with Archroma’s broad knowledge of chemical technology and processing. All One Way dyes and chemicals are measured against more than 15 textile eco-standards, like Bluesign, Oeko Tex and GOTS, by Archroma product stewardship specialists who then score their toxicological and ecological profiles. Additionally, an Archroma software, called the One Way Calculator, enables mills to assess the cost, performance and environmental profile of products almost instantly.

With One Way, Archroma is striving to lead industry efforts in demonstrating that sustainability can be a key driver of innovation and performance for customers.

 

The Cotton Textiles Export Promotion Council (Texprocil) has urged the government to disburse the committed support of about Rs. 3,000 crore under Textile Upgradation Fund Scheme to help the industry tide over tough times. The Council has asked the government to include cotton yarn under Merchandise Exports from India Scheme (MEIS) as it is the only product that has been deprived of export incentives despite lot of value-addition within the country, while there is a strong case to double MEIS on fabrics to four per cent.

It also urged for the inclusion of cotton yarn and fabrics under ROSL (Rebate of State Levies) scheme for it faces many state levies as in the case of made-ups and garments. The central levies should also be factored under the ROSL as these levies are not being considered in duty drawback. Interest subvention should also be extended to merchant exporters as they contribute substantially to exports.