India’s second largest denim maker, Jindal Worldwide which saw post-pandemic boost in export business and a recovery in domestic demand is now looking at expansion and fund raising plans for the future.

As per the compnay, a de-risk strategy adopted by international buyers against Chinese supplies given a huge flip to Indian exports. Moreover the ‘work-from-home’ culture fuelled demand for denim and casualwear in the domestic market.

As per Gaurav Davda, Head of Corporate Finance & Strategic Initiatives, Jindal Worldwide, is now planning to expand denim capacity from 140 million metres per annum (MMPA) currently to 160 mmpa within next six months and further up to 180-200 mmpa over the next two years. The total capex plan is between Rs 150 to Rs 200 crore for all expansions including spinning capacity and augment denim capacity, premium shirting etc. Funds for expansion will be raised be through a mix of retained earnings, from lenders and through public equity. Davda says for the past 20 years of the company’s listing in bourses, they have not done any public fund raising. And having reached a sizeable number on business side, they can think of it. The company’s sales have bounced back from a washed-out April-June quarter from Rs 56 crore to Rs 414 crore in September 2020. After a loss of Rs 14.9 crore in the first quarter, it turned to black with profits of Rs 17.6 crore. However, they expect to close the fiscal with lower turnover compared to last year. JWW has appointed agents across 1he US and other parts of Asia catering to global brands such as M&S, H&M, Carrefour, JCPenny, Provogue, US Polo Assn, Pepe Jeans, Spyker, Mufti and Future Group.

Though the European Union fears a significant decline in denim imports due to COVID-19, it will continue to remain a huge market for international denim exporters. As per a report by the Centre for Promotion of Imports, the Europe Union imported denims worth €9.2 billion in 2019.

Germany: The largest denim importer in Europe, Germany imported denims worth €2.1 billion in 2019. From 2014-2019, the country’s denim imports grew at an average rate of 3.5 per cent per year in value, while their volume grew by 2.4 per cent per year. Men’s denims constituted the larger portion of Germany’s denim imports in 2019 with 65.1 per cent share while women’s denim had a 34.9 per cent share.

The Netherlands: Amounting to €1.2 billion Netherlands’s denim imports grew at an average rate of 7.5 per cent per year in value while they grew by 3.5 per cent in volume. Men’s denim segment grew by 8.2 per cent every year on average while women’s denim overall import grew by 6.3 per cent.

Spain: Spain was the third largest importer of denims in Europe, with imports amounting to €1.1 billion in 2019. In the five last years, the value of Spain’s denim imports grew at an average rate of 7.5 per cent per year, while their volume grew by 7.1 per cent.

From 2014-2019, the value of women’s denim imports grew by 10.1 per cent while that of men’s denim grew by 4.0 per cent.

France: Fourth largest European denim importer, France imported denims worth €953 million in 2019. The country’s denim imports grew by 2.1 per cent in value while they grew by 2.4 per cent in volume. Import of men’s denims constituted 56.5 per cent of its total denim imports while women’s denims constituted 43.5 per cent.

The United Kingdom: The UK was the fifth largest denim importer in Europe in 2019. The country imported denims worth € 750 million in 2019. Men’s denims constituted 53 per cent share of UK’s total imports’ value in 2020.

Italy: Sixth largest denim importer, Italy imported denim worth €634 million in 2019. From 2014-2019, the value of Italy’s denim imports grew at an average rate of 2.6 per cent per year, while their volume grew at 3.2 per cent per year. Men’s denim products comprised the larger denim segment in Italy with 55.2 per cent, followed by women’s denims with 44.8 per cent.

New denim styles

Skinny and super skinny women’s denim jeans transformed into high-waist straight or slouch trousers in 2020. Denim length shortened with new features like split trousers legs, legs cropped from the cuffs and very wide legs being added. Mom’s Jeans high-waist fit of denim trousers gained popularity during this year along with jeans in “used” or stone-washed style.

Online denim brands to surge in 2021

Online distribution of denim jeans is expected to continue in 2021 too. Denim manufacturers need to collaborate with smaller online brands to maintain production standards. Companies from developing countries like India need to distribute their products right to the customer using digital channels.

Athleisure popularity threatens denim

The emergence of athleisure in 2014, has threatened denim sales across the world. Already popular for its leisure features, athleisure sales grew by 12 per cent from 2018 to 2019. However, the industry is uncertain of this trend’s future influence on denim imports.

While polyester, nylon, cotton and cotton yarn prices in China grew strongly during December, spandex saw decline after 40 per cent increase in previous months. As per a CCF Group report, spandex prices were mainly affected by a dip in demand and operating rate of downstream mills which varied from medium-to-high during the year.

Covered yarn dominates spandex application

Accounting for 30 per cent of total demand, covered yarn remained the biggest application area for spandex during the year. Though the operating rate of air covered yarn plants and cotton core-spun yarn moved down slowly, it remained high at 80 per cent. Air covered yarn also snatched some of the market share of conventional covered yarn which enjoyed a stable market share in low-end socks and high-end men’s wear fields. High-end conventional covered yarn mainly used branded spandex and produced according to orders.

Affecting the operating rate of circular knitting plants

Circular knitting market was the second highest application area for spandex in 2020. The operating rate and orders of circular knitting plants declined from September-November after they delivered thick fabrics and fabrics for sportswear and sweaters. In December, the operating rate of these plants dipped further after they produced fabrics for yoga cloth, plain fabric, milk yarn and rib fabrics. However, production of fabrics for Roman fabric, sweater and winter sportswear gradually reduced further affecting the operating rate of these plants. Moderate demand from warp knitting plants

Demand for spandex from its third largest application area - warp knitting market was moderate. Operating rate of warp knitting plants remained at 70-80 per cent while orders declined slightly in Guangdong and some other plants. Most of these plants produced fabrics for yoga cloth, sportswear and swimwear etc. Over 50 per cent of warp knitting plants produced fabrics for spring and summer wear in 2021. Low-end warp knitting plants from Haining, Zhejiang and Changshu, Jiangsu, operated at above 80 per cent of capacity. Consumption of Spandex 40 D increased in Haining, Zhejiang and Changshu, Jiangsu. However, the operating rate of these plants declined rapidly after peak-season.

Sharp fluctuations in lace knitting and braid market

Prices of spandex for ear band of mask experienced sharp fluctuations in the first half of 2020 with many companies over-producing 140D spandex for the lace knitting market. As lace knitting fabrics are mainly accessories, sellers ended up with bigger decrement of 140D/210D than 40D in December.

Operating rate of braid mills declined in December as orders diminished. Demand for spandex slowed down with orders for spandex 140D for ear band of mask also dipping. Meanwhile, the demand for spandex 70D and 40D for ear band of mask sustained.

The Chinese population is expected to be more mobile during the upcoming Spring festival holiday in February. This may affect the resumption of spandex production already suffering from the effects of the pandemic. Market players expect spandex prices to rise with loose monetary worldwide. Some of the downstream fabric mills have advanced their production of light which will support demand for spandex in short run. As current spandex stocks are low, their prices may vary. Manufacturers may offer slight discounts on large orders, which may help stabilize prices of seasonal goods.

The 2nd International Conference on Cellulose Fibers will cover the entire value chain from the lignocellulosic feedstock, dissolving pulp, cellulose fibers like rayon, viscose, Modal(R), lyocell, or new developments. The event includes a wide range of applications, woven textiles and non-wovens.

The conference will grant the innovation award “Cellulose Fibre Innovation of the Year” to the innovative cellulose fiber industry for the development of new technologies and applications. Six inventions, including plastic-free absorbent hygiene products and Cellulose nanofibre, assisted biomimetic aerogels for EMI shielding have been nominated for the “Cellulose Fibre Innovation Award.” Three winners will be selected and awarded at the 2nd International Conference on Cellulose Fibres (CCF), to be held during February 2–3, 2021, online.

The six nominations include Bast Fibre Tech (Canada) which has made compostable fiber products from agricultural hemp and flax waste; Empa, Laboratories for Materials Science and Technology, (Switzerland), which created cellulose nanofibre assisted biomimetic aerogels for EMI shielding; Kelheim Fibres (Germany) has created plastic-free absorbent hygiene products; Metsa Spring (Finland) has made textile fiber based on paper grade pulp. OrganicDisposables (Poland) has created FibriTech l from cellulose for soilless farming. And Stora Enso (Sweden) has produced a lightweight cellulose-based foam for packaging.

Iranian researchers have invented a new system to replace traditional wool washing systems with 80 per cent less water consumption. This invention can easily separate dead fibers and greatly increase the purity of wool. In this system, at first and without using water, only by creating electrical charges in wool fibers, we can easily separate high-quality wool fibers from the rest of the waste and dead fibers and produce many by-products.

First of all, plant and animal wastes are collected as chemical fertilizers because they can be separated dry. In addition, dead fibers, which are separated from high-quality fibers due to different density and electric charge, are used in the production of thermal insulation and industrial mats. Another valuable product called wool oil or wool wax, is produced lanolin and is widely used in the cosmetics industry. In this system, cleaned wool only needs one final wash and up to 80% of water consumption, energy and production of industrial effluents are reduced.

A 2.5 to 5 Nm yarn can be spun with dead fibers along with wool fibers, which is suitable for woollen spinning and so-called rug carpets and has a very low value. By separating the dead fibers, the purity of wool fiber is increased and it can be spun in the semi-worsted system to produce 5 to 25 Nm yarns, which are very suitable for the production of machine-made carpets and high-quality handmade carpets.

One of the most important features of this system is the separation of dead fibers and hairy fibers from real wool, which by increasing the purity of fibers and producing wool tops, provides the possibility of spinning fine yarns with a quality of 5 to 20 metric.

In addition, dead and hairy fibers can be recycled to be used in the thermal insulation industry and industrial felts as a by-product.

The Accelerating Circularity program aims to recycle consumer goods to produce home textiles, hotel linens, denim, knit tees, activewear and outerwear. It aims to recycle millions of pounds of end-of-life textiles from landfills. The new venture is funded by a grant from the Walmart Foundation and operates with support from Gap Inc, Nike, Target, Tencel and VF Corporation,etc. Participants in the project include brands, retailers, chemical recyclers, mechanical recyclers and companies producing polyester and cotton.

The program estimates about 35 per cent of post-consumer textile goods are readily suitable for recycling, with 45 per cent potentially suitable and another 20 per cent not likely. Readily recyclable materials contain either pure cotton or pure polyester. This group also includes materials with more than 50 per cent cotton content.

Potentially recyclable materials could be returned into the production stream with the commercialization of technologies that can accept a wider range of inputs such as nylon, man-made cellulosics or a low percentage of elastane, says Janel Twogood, Research Analyst at the organization.

Post-consumer products currently considered unlikely for circular production include those with certain coatings and finishings as well as well as those made from multiple materials and metallic fibers.

Accelerating Circularity plans to start phasing pilots by next summer. The long horizon of the whole project is about 24 months to allow time for testing and business case documentation, she added. The group also plans to invite textile manufacturers, brands and retailers to join in the effort.

LVMH Moët Hennessy Louis Vuitton plans to complete acquisition of Tiffany & Co on January 7 as Tiffany shareholders have approved the updated purchase agreement which reduces Tiffany’s sale price. Louis Vuitton will now purchase Tiffany at $131.50 in cash per share purchase price as against the original offer of $135 a share. That will result in $420 million in savings for LVMH. The two parties also agreed to settle pending litigation in the Delaware Chancery Court. The final purchase price is $15.8 billion.

After deal completion, Tiffany will no longer be a public company, but an indirect wholly owned subsidiary of parent company LVMH, thus joining a stable of luxury brands that includes Dior, Louis Vuitton, Celine, Fendi, Givenchy and Berluti, not to mention jewelers Bulgari, Chaumet and Fred.

The agreement enables LVMH to buy Tiffany for a record $16.2 billion. The group had decided to walk away from the deal in September when the coronavirus crisis hit US.

In October, both parties reached a truce in order to avoid legal proceedings that would have been harmful on both sides.

To sabotage China’s plans and prevent cross-border flow of data, Japan plans to build a coalition in the Asia-Pacific region. At an RCEP ministers meeting in Hanoi in May 2017, Hiroshige Seko --Japan's former economy, trade and industry minister – had proposed to cover digital rules in the negotiations. Japan had laid the groundwork for this month earlier, when Seko brought ASEAN ministers to the scenic landmark of Wakayama Castle, in his constituency, during the peak of cherry blossom season to build a consensus.

RCEP, which is expected to go into force as early as 2022, consists of the 10 members of the Association of Southeast Asian Nations as well as China, Japan, South Korea, Australia and New Zealand. It will set the rules for electronic commerce, guaranteeing free data flows between members and banning demands by countries such as China to store information on local servers.

Tokyo's strategy is to prevent a Beijing-led pace of negotiations. It seeks to enlist other countries that share the same goal. Japan is looking at future deals as well, including possible Chinese participation in the TPP-11, formally known as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership.

As per Le Tien Troung, General Director, Vietnam Textile and Garment Group (Vinatex), the garment and textile sector is targeting export turnover of $38-39 billion in 2021. To achieve this, the group proposes to reduce long-term interest rates. It also plans to make new investments besides increasing raw material production to meet the rules of origin from new-generation free trade agreements (FTAs).

Meanwhile, after a year of hardship and low efficiency, investment projects in Vietnam’s garment and textile sector would no longer hold high priority. This would make it difficult for businesses to access capital so the commercial banking system would need to be flexible in credit ratings in proportion to the speed of market recovery.

Enterprises also expect the government to offer policies to develop supporting technologies for the sector. Firms hope the government continues to direct to reduce non-production costs, especially logistics costs through the planning of the national logistics network, and other non-tariff costs.

The UK-Việt Nam Free Trade Agreement (UKVFTA), expected to come into force at the beginning of 2021, could be an export boon for Vietnamese garment-textile and footwear enterprises. It would fuel the growth of Việt Nam’s textile and garment industries by 6 and 14 per cent by 2030.

Booth registrations for the 2021 edition of China International Sewing Machinery and Accessories (CISMA) have crossed 2019 levels. As per an Apparel Resources report, the projected area of the show has grown from previous edition due to early confirmation by the international sewing technology companies.

Amongst the declared exhibits, sewing machines account for 51 per cent of the total space; sewing and comprehensive equipment account for 25 per cent space and embroidery machines as well as functional parts account for 12 per cent space each.

These escalating activities in the active booth applications for CISMA 2021 indicate that the overall economic operation of the sewing industry is recovering. In the New Year 2021, the show organiser will further optimise and refine various services, and work with exhibitors to create a year-on-year increase in value.

China International Sewing Machinery & Accessories Show(CISMA) is the world's largest professional sewing equipment exhibition. It covers pre-sewing, sewing & stitching, after-sewing, CAD/CAM, and accessories products, showing the entire chain of making clothes. It is welcomed by exhibitors and visitors for its large scale, excellent service and strong trading function.