To increase the proportion of sustainable materials in its products, German sportswear firm Adidas has agreed to subscribe for €3 million ($3.65 million) worth of shares in Finnish textile recycling firm Spinnova’s planned initial public offering, bringing the total investment it has secured to €58 million.

As per Fashion Network, Spinnova makes makes textile fibre out of wood or agricultural waste. The company is building its first commercial factory in Finland with strategic partner and wood raw material supplier Suzano, and is also building a pilot facility for fibre production out of leather waste.Adidas aims to secure access to significant volumes of the company’s patented fibre in future.

The company has pledged to shift to using only recycled polyester from 2024 and is also involved in research cooperation with another Finnish start-up, Infinite Fiber, to develop a process that can transform used clothes into a cotton-like material.

The third edition of India Spotlight Report reveals, suspension of manufacturing due to COVID-19 led to a 20 per cent decline in credit borrowings by Indian textile and apparel sector in December 2020. The report released jointly by SIDBI and CRIF High Mark says the textile and apparel sector in India burrowed loans worth Rs 1.62 lakh crore till December 2020. The number of active loans by the month-end stood at 4.26 lakh. The sector also clocked in 8 per cent increase in non-performing assets during the month while export credit dropped 25 per cent Y-o-Y.

MSMEs are India’s top borrowers

As of December 2020, the Indian apparel and textile sector has around 5 lakh burrowers. Almost 95 per cent are concentrated in micro, small and medium segment. Around 80 per cent of India’s burrowers are based in top 13 textile and apparel manufacturing states. Maharashtra has the highest percentage of burrowers with Mumbai having over Rs 10,000 crore credit portfolios as of December 2020.

Considering the sector’s credit requirement, in Budget 2021-22, the Central government introduced a scheme to set up zega Integrated Textile Regions and Apparel Parks (MITRAs) with plug n play facilities across the country. The government also announced a special economic package in May 2020 under the Atmanirbhar Bharat program for small-scale entities, including weavers and artisans, informs Sivasubramanian Ramann, Chairman and Managing Director, SIDBI. These policies alongwith abundant availability and fair access to raw materials and surplus labor will help boost future development in this sector, feels Navin Chandani, Managing Director & CEO, CRIF India

Public banks give out most loan

Public sector banks cater to most of the financial needs of the textile and apparel sector in India. By December 2020, these banks serviced around 62.61 per cent loans availed by the sector. On the other hand, private banks, NBFCs and foreign banks serviced 23.49 per cent, 8.66 per cent and 1.41 per cent loans respectively.

However, the value of loans serviced by private sector banks was larger at 40.54 per cent followed by public sector banks which serviced loans amounting to 36.59 per cent of the sector’s total borrowings during the year.

Winning applause from the International Anti-Fur Coalition as the first entire nation to impose such a ban, Israel announced a ban on the sale of fur in the fashion trade.

As per Fashion Network, the ban was announced by Israel’s environment ministry banned on commerce in animal fur, imports and exports except for the needs of research, study or certain religious traditions. Israel became the first entire nation to be Fur Free, against a backdrop of bans in some international cities and in the US state of California.

The ministerial decree is to take effect in six months.

The animal rights group People for the Ethical Treatment of Animals (PETA) called for other countries to follow suit on health grounds.

Cramming sick and stressed animals together in unsanitary conditions on fur farms creates the perfect breeding ground for deadly diseases; PETA said adding that the ovel coronavirus has been found on mink fur farms in a dozen countries.

The Indian Olympic Association (IOA) has dropped Chinese sportswear maker Li-Ning as its official uniform sponsor just over a month before the Tokyo Games are expected to begin

The move comes a week after the organization’s unveiling of the new kit was met with swift criticism amid strained relations between India and China. Indian athletes, coaches and support staff will now wear unbranded apparel to the Games save for the official ceremonial kits, which are sponsored by domestic brand Raymond.

The organization said it sought advice from the sports ministry before deciding to terminate its contract with Li-Ning, which began with the 2016 Rio Olympics and was set to conclude after the Tokyo Games.

Like India, American lawmakers also recently urged members of the National Basketball Players Association (NBPA) to ditch their endorsement deals with Chinese sportswear brands that employ cotton grown in the northwestern Xinjiang Uyghur Autonomous Region, warning that they could be seen as endorsing, even implicitly, potential forced labor widely believed to be occurring there.

Finish local newspaper Yle also implicated the Finnish arm of German discount retailer Lidl, of selling outerwear manufactured by the Kashi Rising Garment in Xinjiang in recent years.

Lidl Finland, which says it prohibits any forced labor in its supply chain, will be pausing orders from the factory as it launches an investigation, according to Laura Kvissberg, its sustainability specialist.

The United StatesSenate has also approved a legislation to dedicate $250 billion to scientific research and development over the next five years.

The US Innovation and Competition Act will appropriate $52 billion in emergency funding for the semiconductor industry and authorize $81 billion in spending by the National Science Foundation.

Burberry has announced its pledge to become Climate Positive by 2040, setting a new industry standard that goes further than the company’s current 2040 net-zero target. To achieve this, Burberry will take action within its own value chain, guided by climate science.

The company will accelerate its ambition to reduce emissions across its extended supply chain, aiming to reduce them by 46 per cent by 2030. This means Burberry’s Science Based Targets will be aligned to the 1.5°C pathway set out in the Paris Agreement

The company also aims to become Net-Zero by 2040, 10 years ahead of the 1.5°C pathway set out in the Paris Agreement

It plans to accelerating low-carbon future solutions and investing in nature-based projects with carbon benefits that restore and protect natural ecosystems and enhance the livelihoods of global communities through the Burberry Regeneration Fund.

Burberry will also invest in initiatives beyond its value chain that support the world’s efforts to create a resilient, zero carbon future.

The Lycra Company has appointed Julien Born its new President and CEO, following the retirement of David Trerotola. As per the Spin-Off, the company has also promoted Nicolas Banyols as its new chief commercial officer. Banyols will be responsible for driving business strategy and execution along the global value chain. Commercial leaders in Asia-Pacific, North and Central America, and South America and directors of the company’s nylon and specialty polyester businesses will now report to him.

The Lycra Company has also promoted Arnaud Ruffin as the new Vice President- Brands and Retail. He will manage global downstream customer processes. He will oversee the EMEA downstream customer teams and provide support to the North America downstream customer team. Another promotion in the company includes Alistair Williamson who has been promoted as the new Vice President -EMEA and South Asia. He will be responsible for regional commercial activities to drive long-term value creation, reporting to Banyols.

The Lycra Company is currently focusing on its innovation capabilities and brand franchises, while further expanding collaboration with its mill network, all at the service of brands and retailers. The company also plans to launch a new gated digital platform, to showcase its products and services alongwith mill network.

At a joint press conference, members of the Pakistan Hosiery Manufacturers and Exports Association (PHMA) urged federal government to restore zero-rating, continue duty drawback of taxes (DDT) and Technology Up-gradation Fund (TUF) scheme, and to lower final tax and withholding tax in Budget 2021-22. The members urged the government to reduce withholding tax rate to 0.5 per cent, suspend Export Development Fund (EDF) surcharge, and reduce and fix tariffs of electricity in the forthcoming budget.

The conference was attended by Zubair Motiwala, Chairman, Council of All Pakistan Textile Mills Associations; Jawed Bilwani, Chairman, Pakistan Apparel Forum; Tariq Munir, Chairman, PHMA and other leaders of different associations. Motiwala said they have been demanding restoration of zero rating on GST, “No Payment No Refund Regime” through revival of SRO 1125 in letter and spirit. The demand was made because SME exports have decreased by 30 percent as compared to last year due to imposition of 17 percent GST, which blocked precious liquidity.

With the introduction of TUF scheme in 2009, 30 per cent capacity of textile sector has been enhanced. Therefore, it is imperative to reinstate TUF scheme for the next five years, the speakers said. They added that 0.25 percent EDF surcharge was deducted from export proceeds of the exporters for export development since 1992. Collection of EDF surcharge was approximately Rs9 billion annually. Presently, the government has Rs58 billion in its kitty on account of EDF. Hence, they want the government to suspend collection of surcharge till the Rs 58 billion of EDF was exhausted.

They also demanded a one percent to 0.5 percent reduction in withholding tax for exporters as this would also help the exporters in using the cash liquidity for enhancement of exports.

India and Australia are planning to resume trade talks to re-launch the long-suspended Free Trade Agreement between the European Union and India. As per Textile Today, Indian garment exporters have been urging the government to conclude a trade deal with Australia since trade talks between the two countries were suspended in 2015. Exporters believe, this would help India export the additional $500 million goods to Australia.

In fiscal 2021, India’s exports to Australia were worth $4.04 billion, whereas imports were worth $8.24 billion. Though the balance of money is currently in Australia’s favor, it can altered if some part of the garment is included in the trade agreement. In terms of clothing, Australia imports approximately $6.6 billion worth clothing, with India accounting for 1.2 per cent. Resumption of negotiations will certainly impact trade figures.

Manufacturers urge governments to increase production as yarn prices increase worried at fluctuating yarn prices, garment and textile manufacturers urged the central and state government to help increase production. Radhe Shyam Ahuja, Senior Vice-President, Bhartiya Vyapar Mandal, said, the price increase hurts only s not only the garment and textile industry but also the yarn traders and general public.

Vinod Thapar, Chairman, Knitwear Club adds, a yarn price increase is impractical as demand has dropped over the last few months due to drop in production. The price increase of almost 60 per cent indicates this is a man-made situation. He urged garment makers to find a way to absorb the price shock.

Hemant Abbi, Executive Member Moti Nagar United Factory Association adds, the price increase has compelled many members to shut factories and get into trading as they couldn’t bear more losses. The other members are also feeling helpless since the trend of unjustified increase in yarn rates has not changed for a year

The COVID-19 pandemic has battered sales at 19 Gap stores in the UK and Ireland while its distribution centre in Rugby continues to remain at risk. The retailer has decided against renewing store leases that expire next month. Last year, it closed 204 stores due to pandemic. The retailer also lost $665 million in revenues during the year upto January 2021 but has since seen its fortunes improve. It booked a profit of $166 million in the three months to the end of May, on sales of $3.9 billion, higher than the revenue figure it reported in the same period of 2019, the last comparable quarter before the pandemic.

The pandemic has led to may high street fashion retailers closing stores permanently. In the last one year, reputed retailers like TopShop, Debenhams, Cath Kidston, Oasis and Warehouse have shut shop. Collectively, British high streets lost over 17,500 retail stores with further damage likely to have been inflicted in 2021.

A study by the Centre for Retail Research shows, the sector also lost 190,000 jobs between the start of the pandemic and March 31, 2021. Stores closures may continue with jobs losses despite easing of restrictions, warns Helen Dickenson, CEO, British Retail Consortium.