Alok Ind will launch a sheet collection named Suta. Suta fiber is a naturally wrinkle-resistant, anti-bacterial, zero shrink and quick dry yarn that boasts test standards superior to 100 per cent cotton. Alok developed the innovative yarn using its expertise in polymer-based yarns. The manmade fiber can compete directly with the hand feel of a natural cotton fiber.

The collection is made from yarns that weave into a fabric the feeling of cotton. The product has been designed to help manufacturers and retailers decrease risk and volatility driven by single source cotton. Suta can be used as 100 per cent fiber construction and can also be used in blends and with recycled yarns.

Alok is an Indian textile manufacturer with operations in both the cotton and polyester value chain. The company is primarily engaged in the business of textile manufacturing including mending and packing activities. It has four manufacturing locations. The range of products includes fabrics, garments, embroidered fabric saris and terry towels.

Alok was incorporated in 1986 and began activities with the manufacture of texturised yarn by setting up manufacturing facilities at Silvassa. In the company expanded the texturising capacity to 30 machines, knitting capacity to 40 machines and weaving capacity to 170 air jet/ rapier looms.

Bangladesh is yet to tap the full potential of the European Union and the UK markets.

It has scope for additional earnings by exporting products to these regions. One reason is that China is losing its share in the global market due to rising tensions with the west, the emerging geopolitical scenario, and the extended Covid restrictions in the former, and therefore Bangladesh can further raise its share.

China is moving away from low value-added apparels to more sophisticated ones and that also works to Bangladesh’s advantage. China’s share in the EU market in 2010 was nearly 44 per cent which declined to around 31 per cent in 2021.

In fiscal 2021-22,Bangladesh’s export earnings from the EU and the UK grew by 32 per cent. However the country faces challenges, including inefficiency in ports, complex customs procedures and lack of technological upgradation. Attracting more foreign direct investment in backward linkage, investment in non-cotton fabrics and diversification of readymade garment products can allow Bangladesh to grab a bigger share of Chinese exports.

The South Asian nation’s producers of readymade garments contribute around a fifth of its gross domestic product and more than 80 per cent of its export earnings

In the first seven months of 2022, imports of textiles and apparel by the US rose by 29 per cent.

US textile and apparel imports consist of cotton products, manmade fiber products, wool and silk products, and products from silk and vegetable fibers.

Apparel constituted the bulk of textiles and garments imported by the US in January 2022 to July 2022. With a 26 per cent share, China continues to be the largest supplier of textiles and clothing to the US, followed by Vietnam with 14 per cent. Among the top ten apparel suppliers to the US, imports from Indonesia and India shot up by 59 per cent and 59 per cent year-on-year respectively. Imports from Cambodia and Bangladesh too grew 55 per cent and 54 per cent respectively. Additionally, imports from Pakistan, which is among the top 10 suppliers, registered a growth of 46 per cent compared to the same period of the previous year.

In the non-apparel category, among the top ten suppliers, imports from Cambodia soared by 70 per cent year-on-year. Imports from Vietnam and Italy too climbed 27 per cent and 23 per cent respectively. On the other hand, imports from Turkey dipped by 11 per cent.

Spanish fashion designer brands have increased their business by eight per cent.

Inditex, H&M and Primark lead Spanish textile commerce. Traditionally, sales of the three groups have evolved better than the revenue of the sector in Spain. These groups represent 37 per cent of the total fashion sector in Spain.

They have experienced a recovery in indicators such as employment, which has already reached pre-pandemic figures. In 2021, the number of direct jobs in the sector was seven per cent higher than in 2020 and three per cent more than in 2019. Production also returned to growth with an eight per cent increase to around 13 million garments and accessories. The figure is 25 per cent lower than in 2019, when it reached an all-time high.

In terms of distribution, the number of points-of-sale of designer brands increased by one per cent. E-commerce, critical during the pandemic year, continued to gain momentum, with a growth of 55 per cent. This is the highest growth this figure has experienced since records began in 2015. In comparison to 2019, the increase was 137 per cent.

In addition, designer labels have continued to achieve success internationally: in 2021, their sales abroad soared by 30 per cent and already contributed 40 per cent of the sector's total business.

Bangladesh’s denim exports to the US in the first seven months of 2022 rose by 46 per cent.

In 2021, Bangladesh became the top denim exporter to the US for the second consecutive year. Currently, Bangladesh holds a 22 per cent market share of the US denim market.

Bangladesh’s denim sector has improved a lot with huge investments in denim processing plants. The fabric used to be imported but now about 60 per cent is being sourced from domestic suppliers.

A number of state-of-the-art fabric mills were established in the country due to the positive growth of denim.Bangladesh’s manufacturers now produce high-end products with increased investment in research and development, in-house design studios, and technologically advanced washing plants. However the ease of doing business needs to be further developed by resolving all the complexities related to infrastructure and ports.

Although, there has been a decline in orders as the global economy is going through an unstable situation due to war, inflation and the energy crisis. Retailers now have a surplus of goods and so are ordering less. Plummeting sales in the West amid rising inflation driven by the Russia-Ukraine war is the big cloud on the horizon for the apparel industry of Bangladesh.

Pakistan is committed to reducing the cost of doing business for export-oriented sectors including textiles and reducing the current account deficit.

Value-added products are being promoted. Other steps taken include the supply of energy at competitive tariffs, monetary disbursements to mitigate prevailing liquidity issues due to severe economic challenges, duty-free import of cotton and reduction of custom duties on import of dyes and chemicals, and duty-free import of textiles and apparel machinery.

Pakistan’s textile industry is faced with countless opportunities to capture a greater market share, but state reforms in energy, technological upgradation, diversification and value addition will be necessary in order to enhance the potential of the sector and facilitate economic growth.

Pakistan’s exporters handled disruptions such as the Covid pandemic very well especially in comparison to regional competitor Bangladesh.To maintain the current momentum, the textile sector has committed to unprecedented value addition by committing to setting up 1000 garment plants.

A new policy on textiles and apparel would address matters including value addition, product diversification, skill development, productivity and ease of doing business. Investment will be invited in the textiles and apparel sector to enhance manufacturing capacities.

In the global textile market Pakistan has less than a two per cent share, which will be enhanced with practical steps.

In spite of the African Growth and Opportunity Act (AGOA) providing duty-free access to the US market for over 6,000 products, Uganda government believes AGOA‘s potential hasn’t been maximized to its fullest potential even two decades later. The legislation’s primary goal was to promote economic growth through good governance and free markets.

An underutilized opportunity

Although through AGOA, the American market had opened up for micro, small and medium enterprises of Uganda and created a win-win scenario for US and Ugandan businesses, it still isn’t doing as well as expected. Uganda’s export earnings have dropped tremendously in the last two years as a result of the pandemic. Over the last three years, Uganda in particular and the globe in general have been reeling under uncertainties. As other regional countries were finding their feet, Uganda was feeding the US market with coffee, crafts, vanilla, chocolate, tea, textile and dried fruits—all under the AGOA initiative.

As Teddy Ruge, exporter of value-added Moringa products rues, AGOA is a fantastic opportunity but Uganda has not taken full advantage of it yet. Only about 50 companies are exporting to the US under the AGOA initiative. However, by now the number of companies directly exporting to the US by virtue of this arrangement should have been 1,000.

AGOA extension and things to do

Experts are now troubled as the AGOA agreement is set to expire in September 2025 at which stage preferences will fade away, unless renewed or replaced by other preferences, or bilateral trade agreements. In Uganda, there is already increased momentum from the government and sector players to have it extended to at least 2035 or leave it open. According to AGOA in charge in Uganda, Ms Susan Muhwezi, extension is a no brainer, considering its recent success. Experts feel to succeed better, solving challenges such as the skilling gap, shortage of working capital and addressing value chain loopholes, including harnessing interactions with farmers, will go a long way in reaping tangible success out of the AGOA initiative.

Francis Kuluo, Ministry of Trade Principal commercial officer points out, Uganda could have done much better. Now, they need to pay more attention to quality because it is an important market requirement. Uganda has been working on it since 2018 and developed standards for many products, including crafts. The country has also reduced standards and certification costs with a view to growing our exports. The way ahead is to embark on massive sensitization, opines Kuluo. MSMES needs to know there are more than 6,000 products that can be supplied under AGOA to the US market.

Ugandans are still battling post-Covid effects and, since the US economy hasn’t yet fully reopened, the market for these products has dropped. However, there is hope for the future as the duty-free act continues for another new term. Along with the government leading the way, local farmers should take advantage of AGOA. Most of them like the cheaper shortcut route and are inconsistent with their produce. After trying once exporting through AGOA and not making instant profits, they become impatient and leave and try other markets. Thus, with the AGOA settlement being extended, the success of this initiative will now be dependent on the participation of private sector with the government being a facilitator.

Ravi Sam is chairman of Southern Indian Mills Association (SIMA). He is managing director, Adwaith Textiles, and is a commerce graduate. He holds a post-graduate diploma in textile technology and is the founder trustee of Siruthuli, the movement for preservation of water bodies in Coimbatore. He is involved in various social welfare activities. He feels the textile industry should give priority in making investments in renewable energy generation (wind and solar power) to remain competitive and fulfill sustainability obligations.

Dr S K Sundararaman, managing director, Shiva Texyarn, is deputy chairman. He holds an MBBS degree and masters in business management from Cambridge University. Dr Sundararaman is a well-known personality in the field of technical textiles in India and also in the field of technical education. He has been a member of various business forums at the national level. Currently, he is the chairman of the Indian Technical Textile Association.

Durai Palanisamy, executive director, Pallava Textiles, has been re-elected as the vice-chairman. He holds a MBA in international business from Southern New Hampshire University. He is the vice-president of CII, Erode zone. He is also on the committee of the Synthetic and Rayon Textiles Export Promotion Council.

SIMA is the single largest employer organization representing the textile value chain.

Exports are the core area of focus to make India a developed nation by 2047.

Measures have been taken to take forward domestic manufacturing and exports.However for that raw material prices need to be stabilized. Another urgent area is free trade agreements with developed nations. The textile industry is also pitching for PLI-2, extension of ATUFS, advance authorisation on self-declaration basis, and deletion of the condition making the transferee liable and making this applicable to existing scrips under the RoSCTL for garment exports.

There is a continuous increase in the prices of raw cotton. The trend is expected to continue considering the global shortage of cotton. The crop is under stress this year in Pakistan, Brazil and the US. Plus, the ban on China’s Xinjiang cotton has already disrupted supply chains across the globe.

Textiles contribute about two per cent to the country’s GDP. And as an industry, it is the second largest employer in the country — after agriculture.And growing the textile industry could help solve the employment problem plaguing the country to some extent.But India has lost its sheen when it comes to garment exports.

Just a decade ago, India was the second largest garment exporter in the world. Now, India is sixth in the list of garment exporters.

In the first half of 2022 Inditex’s sales rose by 24 per cent. Store and online sales were up 11 percent year-on-year. Profits were up 41 percent and gross margin was up 57 percent, marking the strongest first half in seven years.

Inditex has a unique fashion proposition, an increasingly optimized shopping experience for customers and a focus on sustainability. In the face of possible supply chain tensions entering into the second half of the year, Inditex accelerated the current-season inventory flow. Product availability was up 43 percent in the first half of the year.

Inditex is the parent company of brands like Zara, Massimo Dutti, Pull&Bear and Bershka. Zara continues to be the strongest brand in Inditex’s mix. The fashion giant’s sales were up 29 percent as it continues to up its fashion game with a stronger offer of designer-inspired items, including its Night collection, with a much-publicized campaign starring Kate Moss.

Other stores in the group’s portfolio performed well, including the teen-skewing Pull&Bear and Bershka, which were up 19 percent and 15 percent respectively, and its higher-end Massimo Dutti banner, which was up ten percent. Only Oysho, its lingerie and pajama brand, was down four percent as customers moved on from comfort dressing.