The Kerala garment and textile industry has opposed the proposed GST hike on readymade garments and fabrics from 5 per cent to 12 per cent from January 2022. John Thomas Mundacal, State Vice President, Kerala Textile and Garment Welfare Association says the GST hike is likely to increase production cost from 10 to 30 per cent. He urged the Central and state governments to withdraw the tax. Kerala's textile industry is still enduring heavy losses even after the reopening of businesses after almost a year of complete shutdown due to subsequent waves of COVID-19.

Shop owners in Kottayam are finding it difficult to meet even basic expenditures like salaries, electricity bills, and rent. Local business owners also complained that buyers are buying things online instead of visiting physical stores due to the fear of COVID-19.

Kitex Garments’ Board of Directors has approved investment proposal of Rs 2,406 crore in Kakatiya Mega Textile Park, Warangal and Industrial Park, Sitarampur, Rangareddy District. The Board has decided to incorporate a new subsidiary company in Telangana with an initial investment of Rs 750 crore. Around 70 per cent of the initial investment will be made by Kitex Garments and 30 per cent will be invested by Kitex Childrenswear.

The Board also noted the decision on source of funds for the investment plan will be made based on the detailed project report of Ernst & Young (EY). A part of the renowned Anna-Kitex group of companies, founded by MC Jacob, Kitex Garments is the largest employer in private sector in the state of Kerala.

Established in 1992, the company caters to prominent and renowned conglomerates in the US and Europe. It currently employs around 9,500 people at its facility, and has been a business provider to many satellite businesses in the state.

A study by a German Agency GIZ reveals Bangladesh could not grab a good share of the multibillion-dollar global technical textiles trade due to its lack of awareness of market requirements and adequate technical expertise. The feasibility study revealed these bottlenecks alongside the challenges and constraints facing the textile and apparel sector in making TT and PPE. Faruque Hassan, President, BGMEA opines, Bangladeshi manufacturers did not have the experience of producing technical textiles and PPE before the COVID-19 pandemic and is now moving in that direction.

The GIZ's study will relate the actual scenario on Bangladesh's position in producing technical textiles and PPE and the lacking, he added. The strength of this new sub-sector will, however, depend on the ability of current textile and apparel industry to tweak its existing facilities to produce new PPE products made from technical textiles suitable for export orders in the most cost-efficient manner. The study states, global technical textile market will grow from $179.2 billion in 2020 to $224.4 billion by 2025, at an average annual growth rate of 4.2 per cent, while the global PPE market is likely to exceed $93 billion by the end of 2025.

Though Europe is a leading importer of medical textiles, demand from North America is expected to continue to grow, the study adds.

Ved Prakash Chirpal, Chairman, Chiripal Group of Companies informs, his group aims to expand its footprint both in the local as well as international markets. A diversified textile company, Chiripal Group is a global conglomerate comprising Chiripal Industries (fabric division), Chiripal Industries (petrochemicals), Nandan Denim, Vishal Fabrics, Nandan Terry, Chiripal Poly Films and Vraj Integrated Textile Park.

With a net worth of Rs 2,500 crore, the group is committed to bringing about sustainability and developing environmental initiatives in the regions surrounding its manufacturing plants and facilities. It has made all efforts to reduce, recycle, and reuse waste. It has also increased the proportion of reusing and recycling among its denim verticals like Vishal Fabrics to 5-10 per cent and is in the process of replacing outdated machinery with modern equipment to reduce waste. The group employs a go-green washing machine for sampling and research. It also uses eco-friendly dyes besides having a large green cover around both the plant and the industrial park.

With brands like Benetton moving away from Asia to countries like Serbia, Croatia, Turkey and Egypt for their sourcing needs, COVID-19 pandemic seems to have altered global fashion supply chain forever. Benetton plans to halve its Asian supply chain by end of 2022, says Massimo Renon, CEO. The group has already shifted over 10 per cent production away from countries like Bangladesh, Vietnam, China and India. This is helping it control production process and transport costs, Renon explains.

Benetton’s decision is also influenced by the recent spike in sea freights. Scarcity of vessels and rebound in consumer demand has led to a tenfold rise in sea freight costs. This is causing brands like Hugo Boss to move production facilities closure to markets. Brands like Lululemon and Gap are planning to switch to air freight to avoid running out of stock during the holiday season.

Costs, longer deliveries shifts supply chain

Countries like Vietnam and Bangladesh offer 20 per cent lower production costs. However, supply constraints due to COVID-19 outbreak have increased their lead times to 7-8 months, adds Renon. On the other hand, deliveries of clothes produced in Egypt to European stores can be achieved within 2 to 2.6 months. Woolen garments produced in Serbia and Croatia can be delivered in 4-5 weeks, he adds. This is encouraging Benetton to increase production in these two countries and Tunisia.

Zara-owner Inditex has also set up 53 per cent factories in its home market Spain, Portugal, Morocco and Turkey, according to its 2020 annual report. Advisory firm AlixPartners believes, nearshoring shift will become a permanent fixture with most brands having regional or even national supply chains in future. Most goods will be produced closer to markets, adds Daniel Greider, CEO, Hugo Boss, which has a manufacturing facility in Turkey, and produced parts of shoes in Italy, and made-to-measure suits at its headquarters in Metzingen, Germany.

Factory closures in countries like Vietnam are also accelerating nearshoring. Lululemon is moving production away from Vietnam to mitigate supply chain woes. Further, to control inventory delays caused by shipping congestions and factory closures, Gap is investing in air freight. However, air freight is over eight times more expensive for large shipments and about five to six times costlier for smaller containers, affirms Judah Levine, Head-Research, Freightos, a global freight booking platform. Retailers therefore, plan to use air freights for only smaller and higher-margin products such as apparels, computers and accessories and smaller household goods, shows data from research firm Cargo Facts.

Rising labor costs and quality focus add to woes

Other factors leading to brands’ shift from Asia to other countries include rising labor costs in Asian countries. As per the International Labor Organization’s Global Wage Report 2020-21, in the four years preceding pandemic, labor costs in these countries outstripped those in the rest of Europe and North America.

Another factor driving the shift is customers’ growing preference for quality over price, affirms Renon. His group’s emphasis on creating high-quality and long lasting garments is helping it return to profitability after suffering losses for eight years. The group hopes to get back in the race from upcoming Christmas season.

Two brands from Texbrasil (Brazilian Textile and Fashion Industry Internationalization Program); Guria and Rio de Sol participated in the Surf Expo tradeshow, held in Orlando, Florida (US) this month

These companies presented their novelties focusing on beachwear, fitness and resortwear at the exhibition. The brands closed deals worth $ 230.000, in addition to 62 contacts at the event.

Guria, which already participates in other events in the segment in the United States, such as the SwimShow, acquired new customers at the event, who have already placed orders during the tradeshow. With a consolidated presence in the country, the company has its own office and sells directly to retailers in the area.

The extra edition of Colombiatex was held in Medellín, parallel to Colombiamoda. In addition to a digital format version in January, the event also held a physical event from July 20-27.

The companies of Texbrasil; Covolan and Vicunhawere at Colombiatex.The brand LeninhaRoupa de Baixxo participated in Colombiamoda digitally. Together, the companies made $874,000 at the events. For the next 12 months, the expectation is to close another $3 million in business.

The exhibition was important for Vicunha as it enabled the brand to resume face-to-face communication with customers. The brand has participated in the event since the Program’s support began, Due to travel restrictions, the 2021 edition was more local and had Colombian buyers as the vast majority. Even so, Vicunhareceived around 80 customers during the three days of the event.

The West Java Regional Economic Recovery Committee (KPED) inaugurated the West Java Material Center to facilitate the textile industry supply chain. As per an Indo Textiles report, the Material Center is expected to connect small and large industries in textile products.

The West Java Material Center was initiated by the West Java Provincial Government through the Regional Economic Recovery CommitteeSub-Division of Manufacturing, Manpower and Overseas and the Indonesian Textile Association (API) and fully supported by BI and West Java OJK.

ArifinSoedjayana, Head, West Java Province Industry and Trade Office, says, the centrewill facilitate business relations between small and large scale industries, especially in meeting the needs of raw materials.

Herawanto, Head, BI West Java adds, the Material Center provides easy access to raw materials and efficiency of distribution channels between large industries and small and medium industries for the textile industry sector.

Steve Lamar, President, AAFA has appreciated Katherine Tai, United States Trade Representative for addressing US concerns in the Vietnam Timber Section 301 investigation.

Lamar said, the association is pleased to see that US apparel, footwear, and accessories imports from Vietnam will not be subjected to additional tariffs. It is also pleased to see Vietnam and the US solidify their work to guard against illegal timber harvesting an important step for Vietnam’s sustainability journey.

The tariff relief and removal of tariff threats is good trade policy, as taxing Americans to get dressed each day is never a good negotiating tactic, Lamar said.

AAFA has continuously urged the Biden administration for additional Section 301 tariff exclusions and retroactive renewal of all expired exclusions. Last week, AAFA penned a Tai on this issue and the simultaneous shipping crisis causing out of control freight rates, historic logjams at U. ports, delays, and costs that are wreaking havoc on supply chains and America’s economic recovery.

Indo Count plans to showcase its expanded Pure Earth range at the New York Home Fashions Market.

As per a Home Textiles Today report, the company will showcase three distinctive bedding innovations.These new offerings will appeal to environmentally conscious customers who value sustainable, renewable products which enhance comfort and provide better sleep while incorporating the newest technologies to reduce environmental impact and resources required for manufacturing, says GautamSareen, SVP– marketing

The product offering features a sustainable blend of cotton and biodegradable polyester – a blend aimed at reducing the persistence of plastic microfiber pollution in oceans and waterways from laundering, and plastic accumulation in landfills. The construction is designed to mimic the comfort and hand of conventional cotton and polyester while providing a lower polluting footprint.

Adds KK Lalpuria, Executive Director and CEO, advancements to the Pure Earth sheets complement the company’s commitment to sustainable processes to create an incredible new line of products that feel good while doing good for the environment and consumer.