Grasim Industries Ltd, a subsidiary of Aditya Birla Group, witnessed its quarterly profit plummet by 56% - the fourth consecutive quarterly decline. The company faced challenges from feeble chemicals prices and a textiles industry slump.

Standalone profit decline

The standalone net profit for the quarter ended June 30 fell to ₹3.55 billion ($42.9 million), a significant drop from ₹8.09 billion in the same period last year.

Chemicals price impact

The company's second-largest business, chemicals, experienced a 21.5% reduction in revenue due to lowered prices, including those of caustic soda. Grasim attributed this to an oversupply and weak demand, leading to a 46% decline in international caustic soda spot prices.

Textiles business struggle

Grasim's primary business, the viscose staple fibre (VSF) segment, faced sluggish demand and flat material prices. The VSF business's revenue dropped by 16.7%, marking the third consecutive quarterly decline.

Overall revenue and future plans

The company's revenue from operations fell by 14% to ₹62.38 billion. Grasim stated that the global textile value chain remained slow, with certain markets showing slight improvements.

Focused investments

For fiscal year 2024, the company allocated ₹57.91 billion for capital expenditure (capex). Out of this, ₹43.42 billion will be utilized to establish paints and business-to-business e-commerce ventures.

Last month, Grasim's subsidiary Ultratech Cement reported positive Q1 results, while Aditya Birla Capital, its diversified financial services arm, also saw profit growth.

Collaborative Endeavor

In partnership with The Synthetic & Art Silk Mills’ Research Association (SASMIRA), the Indian Technical Textile Association (ITTA) joins forces with the National Technical Textiles Mission (NTTM), a Ministry of Textiles initiative by the Government of India.

Series of Success

Following the triumph of the initial event on Protective Textiles in November 2022 and the subsequent Sports Textiles conclave in June 2023, both supported by NTTM, the Agrotech Conclave marks the third installment in this progressive series.

Fostering Agricultural and Horticultural Excellence

Set to take place on October 6th, 2023, at the prestigious India Habitat Centre in New Delhi, the Agrotech Conclave aims to elevate the productivity of agriculture and horticulture products through innovative technical textiles.

The "Make in India" initiative, launched in 2014, has been a major success. FDI in the manufacturing sector has surged by 57% between 2014 and 2022, underscoring India's industrial capabilities and the global confidence placed in the nation's economic prowess.

The initiative has made India a more attractive destination for foreign investors by implementing a number of reforms, such as reducing corporate taxes, simplifying regulations, and improving infrastructure. 

These reforms have attracted the attention of global corporations, such as Amazon, Samsung, and General Electric, which have announced major investments in India. These investments are expected to create jobs, boost exports, and help India become a global manufacturing powerhouse.

The surge in FDI is a major boost for India's economy and a sign that the "Make in India" initiative is working. 

The initiative is helping to transform India into a manufacturing hub and create jobs for millions of people. With continued investment and reforms, India is well on its way to becoming a global manufacturing powerhouse.

True Religion, a premium denim brand, is entering the home goods market in partnership with Envogue. The collection, which will be available in January 2024, will include bedding, pillows, rugs, towels, and kitchenware. Prices will range from $29 to $199.

The partnership is a strategic move for True Religion, which is looking to expand its reach beyond denim. Envogue is a leading name in wholesale distribution and home decor design, and it has a strong understanding of the home goods market. The company is also known for its industry connections and its ability to bring brands to life.

The True Religion home goods collection will feature the brand's iconic imagery, including its signature stitching and branding. The products will be available in a variety of colors and styles, so there is something for everyone.

The launch of the home goods collection is part of True Religion's broader strategy to become a lifestyle brand. The company has recently expanded into China and launched a loyalty program. It is also working on a mobile app and collaborating with a variety of creative partners.

With its focus on quality, design, and authenticity, True Religion is well-positioned to succeed in the home goods market. The partnership with ENVOGUE is a major step forward for the brand, and it is sure to help True Religion reach new customers.

The Global Sourcing Expo in Sydney was a success, with strong turnout from retailers and suppliers from 19 countries. IEC CEO Marie Kinsella commended the event for providing a valuable platform for cross-border collaboration.

The Expo attracted major decision-makers, trade buyers, agents, manufacturers, brands, and retail conglomerates, including Kmart, Target, Asics, Aldi, TK Maxx, Bras N Things, and The Iconic. Attendees praised the Expo for its ability to facilitate direct engagement with suppliers and assess product quality firsthand.

The event featured 435 exhibitors from Pakistan, Indonesia, Japan, the UAE, and the US, as well as prominent global trade entities such as the Federation of Indian Export Organisations and the Export Promotion Bureau Bangladesh. The Expo also coincided with the China Clothing, Textile and Accessories Expo, attracting designers, wholesalers, importers, manufacturers, and representatives from retail chains.

The Global Sourcing Expo will return to Melbourne from November 21 to 23, co-located with the Footwear & Accessories Show. This convergence promises to be a dynamic and enriching experience for attendees and participants alike.

Non-tariff barriers (NTBs) are increasingly proving to be a formidable weapon capable of undermining legitimate textiles trade, cautioned the Apparel Export Promotion Council (AEPC) on Thursday. 

Since 2019, a total of 131 NTB notifications have been issued concerning the textile sector, with Uganda leading the pack at 71 notifications, followed by Ecuador (10), China (8), and others. These barriers encompass certifications, regulations, inspections, standards, and SPS (sanitary and phyto-sanitary) measures, often complying with World Trade Organisation (WTO) rules. 

Nevertheless, when misused to unfairly discriminate against imports and hinder market access, these measures transform into non-tariff barriers, obstructing genuine trade. AEPC organized a webinar to raise awareness within the industry about this pressing issue. Mithileshwar Thakur, AEPC's Secretary General, highlighted the escalating use of NTBs as a tool to disrupt trade and called for strategies to address challenges arising from new legislation.

Femography, the FemTech branch of MAS Holdings, South Asia's largest apparel tech company, is redefining feminine health on a global scale. Overcoming historical neglect, limited innovation, and insufficient research, Femography emerged in 2014 as a game-changer committed to empowering women. Addressing key issues like period poverty, menstrual and pelvic floor health, maternal and baby care, and menopause challenges, Femography combines innovation, sustainability, and education.

With a consumer-centric approach, Femography's diverse offerings include reusable period underwear, discreet incontinence wear, and groundbreakingAntiflush™ menopause clothing, all geared towards boosting confidence and comfort. Notably, Femography's emphasis on sustainability resonates deeply, as disposable sanitary products contribute to overwhelming pollution and waste. By providing long-lasting alternatives, Femography aims to minimize environmental impact.

Championing safety and compliance, Femography adheres to strict quality standards and contributes to industry regulations. Through global collaborations, the company advocates for reusable solutions and spreads awareness about the environmental toll of disposables.

Femography's journey isn't just about clothing—it signifies innovation, inclusivity, and transformation. Supported by MAS Holdings and Sri Lanka's apparel industry, Femography is driving a healthier, more sustainable future for women worldwide. It stands as an inspiring beacon, encouraging women to embrace their well-being with confidence, empowerment, and eco-consciousness.

Teejay Lanka PLC has embarked on the fiscal year 2023-24 with resilience, securing a robust balance sheet even amidst a challenging first quarter. Despite a significant decline in earnings, the company closed the quarter with a substantial cash reserve of Rs 9.6 billion.

Sri Lanka's foremost multinational textile manufacturer reported revenue of Rs 14 billion for the quarter ending June 30, marking a 41% reduction compared to the same period last year. Despite this, Teejay Lanka demonstrated its strength by posting a gross profit of Rs 283 million, showcasing its adaptability in volatile industries. However, the gross profit margin contracted to 2%, down from 6.9% in the previous quarter.

The company attributed the downturn to multiple factors, including sales drop, currency appreciation, fluctuating raw material costs, capacity underutilization, and inventory-related expenses. Teejay Lanka, however, reported a positive sign – reduced inventory levels during the quarter, in line with the overall supply chain adjustment.

Teejay Lanka's leadership expressed confidence in its resilience and recovery strategies. Chairman Mr.AjitGunewardene affirmed the deployment of necessary resources and the implementation of innovative long-term strategies to navigate market dynamics.

CEO Mr.Pubudu De Silva outlined the group's priorities for the future, including digitalization, a robust ESG framework, cost reduction, new product development, enhanced synthetic capacity, and empowering human capital.

Notably, Teejay Lanka holds a stake in the US Cotton Trust Protocol, and its ownership structure includes significant backing from Brandix Lanka and Pacific Textiles of Hong Kong.

Demand Shortage Emerges

India's cotton yarn exports have sharply declined from January to May 2023, highlighting a significant demand shortage. During this period, there was a staggering 32% drop in exports compared to the previous year.

Revenue Plunge

The Ministry of Commerce and Industry, India, revealed that the country's cotton yarn exports generated a revenue of $1.32 billion in this timeframe, a substantial decrease from the $1.95 billion generated in the same period the year before.

Glimmers of Recovery in May

May 2023 offered a glimmer of hope, with a 12.73% boost in cotton yarn exports, amounting to $268 million, compared to the previous year.

Shifts in Export Destinations

Bangladesh, traditionally India's primary cotton yarn export destination, experienced a striking 60.42% decline, reaching $364.44 million. Conversely, the Chinese market exhibited a remarkable recovery, surging by 174.90% to $229.65 million.

Varied Export Performance

Among other destinations, cotton yarn shipments to Egypt, Portugal, and Peru plummeted by 26.40%, 3.42%, and 25.36% respectively, on a year-on-year basis.

Uncertain Road Ahead

While May 2023 showcased signs of improvement, the sustainability of this positive trend remains uncertain. This uncertainty has left India's cotton yarn exporters in a state of apprehension, unsure of what the upcoming months might hold.

Devan, a division of Pulcra Chemicals, has unveiled a game-changing milestone with their R-Vital NTL technology, introducing a remarkable durability of 50 washes. This bio-based and biodegradable well-being technology is poised to revolutionize the textile sector.

R-Vital NTL empowers textile manufacturers to enhance fabrics with a versatile array of micro-encapsulated active ingredients. This innovative functional finish adds value to textiles, enabling manufacturers to craft distinctive products that set them apart in the market.

At its core, micro-encapsulation ensures gradual release of active components from textiles onto the skin. Friction during usage triggers the microcapsules to burst, releasing their benefits progressively. This ensures a continuous and gradual infusion of actives.

The natural range encompasses five specialized products, each with distinct attributes: Aloe vera for skin-smoothing, avocado seed oil for moisturization, CBD for relaxation, multivitamins for various benefits, and vitamin E for free-radical protection.

Devan's groundbreaking achievement with R-Vital NTL underscores their commitment to innovation in specialty chemicals. This advancement promises to reshape the textile landscape, elevating industry-wide fabric quality to unprecedented heights.