After almost 30 years with the company, Monforts Vice-President Klaus Heinrichs is to retire at the end of May.

A very well-known and respected figure in the industry, Klaus began working in marketing for the company in 1992.

“From the beginning Klaus used his flair and networking skills to secure and improve the company’s international presence and public relations, especially at seven successive ITMA textile machinery exhibitions, beginning with the show in Milan in 1995,says Nicole Croonenbroek, Marketing Manager, Monforts. Later, he moved to the customer service, sales administration and exports departments.

Heinrichs has also involved in the successful product launches for Monforts technical and technological highlights such as the TwinAir principle of independent airflow regulation, the Hercules LTM stenter chain, the Econtrol® dyeing technology or the Montex®Coat device - to mention only a few. He has also been active on the VDMA’s Exhibition and Marketing Committee since 1993, which he chaired from 2005 to 2008.

Klaus always enriched the industry discussions with practical and future-oriented proposals and thus also advanced ITMA, adds Thomas Waldmann, Managing Director, VDMA Textile Machinery Association.

Indian textile MSMEs are staring at business uncertainty in coming weeks. Fresh COVID restrictions including lockdown, night curfew, weekend curfew, etc, across the country, are threatening production. Over 60-70 per cent of MSMEs units are operating at a production capacity of around 70-80 per cent while it should have been 100 per cent till now, says Ashok Juneja, President, The Textile Association (India).

Juneja expects MSMEs to ensure labor doesn’t migrate back to hometown again. The sector is largely unorganized with no comprehensive information regarding the impact of last year’s lockdown even as the level of production fell in jute, silk, etc, he says.

As per Udyam Aadhaar Portal, the total textile manufacturing MSMEs registered between September 2015 to June 2020 were 651,512 while apparel MSMEs were 428,864. According to Udyam Registration, which replaced Udyam Aadhaar in July last year, 115,855 textile manufacturing MSMEs and 85,564 apparel MSMEs were registered between July 1, 2020, and February 9, 2021.

Up to March last year, all these textile units were running up to 80-90 per cent of their capacity before they contracted in production capacity to 30-40 per cent. The activity picked up in September and by December it scaled to 80-90 per cent production capacity.. However, the performance has been sliding again from March 2021 due to COVID and currently, it stands at 60-70 per cent. If there is a complete lockdown, the production capacity might decline to previous year levels, adds TK Sengupta, Immediate Past President, The Textile Association (India)

Investment information firm ICRA expects the resurgence of COVID cases in India and some of its key export markets to delay full recovery for Indian apparel players to FY2023. However, business performance of apparel players in FY2022 is expected to be better than FY2021. The business is expected to be supported by continued favorable progress on the vaccination rollout and a material shift witnessed towards online shopping.

Most Indian apparel companies will report double digit growth in FY2022, says ICRA. They will achieve around 85 to 95 per cent of their pre-COVID turnover levels, broadly maintaining the level of recovery achieved in H2 FY2021. Besides pent-up and festive demand, which temporarily supported demand during Q3 FY2021, increased mobility amid the easing of the lockdowns increased consumer confidence in H2 FY2021.

This encouraged higher footfalls in marketplaces and drove discretionary consumer spending. For FY2022, ICRA expects top-line growth of 15 to 20 per cent for apparel exporters with range-bound margins amid continued discounting requirements, volatile demand patterns and intense competition in the global apparel markets.

Apparel retailers are expected to report a 35 to 40 per cent turnover growth in FY2022 with partial recovery in operating margins. However, margins are expected to remain lower than the pre-COVID levels by 200 to 300 bps. Apart from these continued pressures, increased raw material costs are likely to limit improvement in margins for apparel players.

Apparel brands are increasingly taking the direct-to-consumer (DTC) route to boost sales, says a report by the Loadstar. Sportswear and equipment producer Under Armour plans to quit 2,000-3,000 stores that currently sell its products and engage more in direct to consumer (DTC) sales. This will help boost profits and gain a more prominent position in the market.

Denim fashion giant Levi Strauss also plans to achieve 60 per cent sales through the DTC route. An early entrant in this segment, Nike made 35 per cent of its revenue through direct-to-consumer channels last year, up from 32 per cent in 2019. FMCG brands Kraft Heinz, General Mills and Kellogg are also eyeing the DTC segment. Kraft Heinz sells baked beans and tomato soup via its Heinz To Home website to consumers in the UK, Europe and Australia, with online sales doubling last year to more than 5 per cent of global sales. PepsiCo set up two websites last year to sell some of its brands, like Doritos and Gatorade.

However, Jason Goldberg, Chief Strategy Officer, Publicis Communications and Chairman, shop.org, a division of the US National Retail Federation, warns, direct selling may not for everybody as securing capacity for final-mile delivery will be a challenge, as demonstrated by the past peak when the integrated parcel carriers raised charges and kept ceilings on volumes from large clients.

Levi Strauss aims to tackle this challenge by increasing its more traditional sales footprint. The company is adding to its own retail outlet locations.

Lenzing Group expects operating result for 2021 to reach 2019 levels. The group’s EBITDA earnings Q1FY2021 increased by 36.8 percent year-on-year to €94.5 million. Lenzing Group produces eco-friendly fibers from the renewable raw material wood. Its high-quality fibers are used in a variety of textile applications ranging from elegant ladies clothing to versatile denims and high-performance sports clothing. Due to their consistent high quality, their biodegradability and compostability Lenzing fibers are also highly suitable for hygiene products and agricultural applications.

The Lenzing Group strives for the efficient utilization and processing of all raw materials and offers solutions to help redirect the textile sector towards a closed-loop economy. In order to reduce the speed of global warming and to accomplish the targets of the Paris Climate Agreement and the “Green Deal” of the EU Commission, Lenzing aims to make its dream of a zero-carbon future come true.

Egypt is constructing the world’s largest textile factory in El-Mahalla. As per Kohan Textile Journal, to be inaugurated in March 2022, the factory spans over 62,000 sq. mt. and will have a daily production capacity of 30 tons. The plans for the factory were announced in September 2019. To fulfill the needs of this and other factories, Prime Minister Mostafa Madbouli plans to grant farmers incentives to grow high-quality cotton. The government will also train workers who in turn will train 130 others to work in factories being developed in Cairo, Beheira’s Kafr Al Dawar, and other areas in the Nile Delta region.

Egypt is also planning a textiles city in the Free Zones System in Minya governorate. The city will be built over 306 feddans, and a company will be established to manage the city and all parties would have equal shares in it. Feddan is an Egyptian unit of area equal to 1.038 acre. The project will provide around 17,000 direct jobs, in addition to indirect job opportunities, and target exports to overseas markets.

At virtual event for Earth Day 2021, Jaclyn Allen, Director-Corporate Sustainability, Guess had said, in its second sustainability plan, the company plans to set more ambitious targets aligned with the Science Based Targets Initiative. As per Sourcing Journal, some of the targets set by Guess include reducing greenhouse gas emissions by half in the next decade, and expanding its Eco Smart line to make up 75 per cent of denim business in the next few years. The brand also plans to eliminate virgin synthetic materials and increase the amount of recycled materials in its lines by the end of the decade.

The first phase of the Guess Eco Smart collection centered on garments made with organic, recycled or responsibly sourced fibers, It’s next edition will involve the use of sustainable dyes and design, said Allen. Guess also plans to release its first line of jeans designed following Ellen MacArthur’s Jeans Redesign guidelines for circular denim. The collection will launch in Europe during the summer and in the US this fall.

According to Allen, the company’s new sustainability plan signifies its transition from understanding the concept of sustainability to making it a part of the company’s everyday activities.

Launched in 2017, Guess’s first sustainability plan had set goals such as reducing greenhouse gas emissions by 15 percent and having 20 percent of its global materials portfolio in Europe, Asia, the US and Canada be considered environmentally sustainable or environmentally preferred. Guess also set a goal to have 25 percent of its denim meet Guess Eco guidelines, which has gone on to become the framework for the Guess Eco Smart collection.

Redma Gita Wiraswasta, Secretary General, Indonesian Association of Fiber and Filament Yarn Producers (Apsyfi) has called for fresh investment in Indonesian textile and textile product (TPT) industry. Currently, this investment is hampered by trade regulations that favor imported products, she said in an Indo Textiles report.

Investment will help boost fabric finishing and fabric manufacturing capacities, she added. Apsyfi believes, to catch up with growth in consumption of textile industry, the fabric sector needs to increase its finishing capacity and rejuvenate fabric-making machines by around one million tons with a total investment of $600 million. Meanwhile, the production of yarn and fiber need to be increased by 500 thousand tonne by 2022 and requires an investment of around $ 400 million.

Wiraswast opines, import substitution target set by the Ministry of Industry alone cannot be fully supported by the Ministry of Trade. The domestic market is still filled with imported goods sold online. Small and Medium Industry (IKM), especially garment IKM (convection) is very depressed because they are directly dealing with imported goods online, she says.

She admits, this year Apsyfi is pessimistic about the prospects for the textile business as the industry requires government commitment to guarantee the domestic market.

A value-chain-based solution that encompasses manufacturers, retailers, brands, and social safety nets for garment workers can help the apparel sectors of Bangladesh and Sri Lanka attain sustainable recovery, experts said at a webinar. Titled ‘Recovery of the Apparel Sectors of Bangladesh and Sri Lanka’ the webnair highlighted the importance of a wide social safety net that commits to ensuring a living wage for RMG workers.

The webinar also heighted the findings of a joint study conducted by the Centre for Policy Dialogue (CPD) and Institute of Policy Studies, Sri Lanka (IPS). It was chaired by Fahmida Khatun, Executive Director, CPD and moderated by Professor Mustafizur Rahman, a distinguished fellow of CPD. Khondaker Golam Moazzem, Research Director, CPD, and Kithmina Hewage, Research Economist, IPS made the keynote presentation.

Experts urged Bangladesh manufacturers to tap into a potential $2 billion worth of orders diverted from China. They urged the governments of sourcing countries, as well as buyers and brands, to launch new social schemes for apparel workers. Experts also opined addressing medium-term challenges through national-level interventions alone would be difficult. Prof Rehman Sobhan, Chairman, CPD, urged ILO to play an entrepreneurial role in bringing together international buying countries with supplying countries to restructure global demand management.

Sobhan also called for tripartite exercises including government, employers, and workers to address not just the immediate impact of the COVID-19 but a longer-term crisis.

A value-chain-based solution that encompasses manufacturers, retailers, brands, and social safety nets for garment workers can help the apparel sectors of Bangladesh and Sri Lanka attain sustainable recovery, experts said at a webinar. Titled ‘Recovery of the Apparel Sectors of Bangladesh and Sri Lanka’ the webnair highlighted the importance of a wide social safety net that commits to ensuring a living wage for RMG workers.

The webinar also heighted the findings of a joint study conducted by the Centre for Policy Dialogue (CPD) and Institute of Policy Studies, Sri Lanka (IPS). It was chaired by Fahmida Khatun, Executive Director, CPD and moderated by Professor Mustafizur Rahman, a distinguished fellow of CPD. Khondaker Golam Moazzem, Research Director, CPD, and Kithmina Hewage, Research Economist, IPS made the keynote presentation.

Experts urged Bangladesh manufacturers to tap into a potential $2 billion worth of orders diverted from China. They urged the governments of sourcing countries, as well as buyers and brands, to launch new social schemes for apparel workers. Experts also opined addressing medium-term challenges through national-level interventions alone would be difficult. Prof Rehman Sobhan, Chairman, CPD, urged ILO to play an entrepreneurial role in bringing together international buying countries with supplying countries to restructure global demand management.

Sobhan also called for tripartite exercises including government, employers, and workers to address not just the immediate impact of the COVID-19 but a longer-term crisis.