Demand from companies for CmiA (cotton made in Africa) cotton is growing. As one of the world’s leading initiatives for sustainably produced cotton in Africa cotton made in Africa represents a socially and environmentally responsible basis for the global textile chain. It gives a face to the small-scale farmers who form the bedrock of the fashion industry. Working in accordance with the Cotton made in Africa standard, some one million small-scale farmers from 10 countries in Sub-Saharan Africa currently account for around 30 per cent of African cotton production.

CmiA cotton has a significantly smaller ecological footprint than the global average. With greenhouse gas emissions at 13 per cent below the global average for cotton cultivation, CmiA cotton also contributes less to climate change. Small-scale farmers benefit from agricultural and business training that enables them to improve their yields and cultivation methods. Beyond sustainable cotton production, Cotton made in Africa actively advocates for issues like healthcare, respect for children’s rights, and equal rights for men and women. This directly contributes to improved awareness of social issues in village communities. Factory workers in the ginneries, where cotton seeds are separated from the fibers by machine, benefit from improved working conditions. Consumers can identify these products through the Cotton made in Africa label. Each purchase represents a direct investment in improving living conditions and protecting the environment.

Bangladesh can capture a big share of the textile and garment recycling industry. The country has a big production base for cotton fiber clothing. Other countries having such an opportunity are Vietnam, Turkey, India, Malaysia and Indonesia. These are all markets with high viability for such a model, given the economic significance of the textile industry and commitment of local policymakers to supporting the sector. Bangladesh has the potential to produce $1.2 billion worth of recycled textile and garment items as the country has a big production base for cotton fibre clothing items, says a Global Fashion Agenda (GFA) and McKinsey & Company study.

Less than one per cent of materials used to produce clothes are recycled. In 2020, the overall uptake of recycled fibers compared to total fiber production was only around 8.1 per cent, with 7.6 per cent coming from recycled polyester from plastic bottles, not textiles. Cotton accounted for 24 per cent of the global fiber market in 2020, while recycled cotton made up less than one per cent. So there is a clear opportunity in building the enablers to scale up textile recycling.

Circular products, which require little to no virgin resources, are key to ensuring a more sustainable fashion industry as 40 per cent of greenhouse gas emissions from factories are created during the manufacturing process. About 35 per cent of the total amount of fibers wasted while making garment items is generated during production.

India’s production of textile machinery, parts and accessories during 2020- 21 recorded a marginal decrease of five per cent reveals Textile Machinery Manufacturers’ Association (India) data. During the fiscal capacity utilization decreased from 49 to 46 per cent as compared to the preceding year. This is despite the fact that there was negligible business during the first two quarters of 2020-21. The bulk of the demand was met through imports, says Vallabh Thumar, Chairman, TMMA.

Total domestic demand for textile machinery during 2020-21 was Rs 9118 crores of which supplies from the domestic machinery industry amounted to Rs 1786 crores, aggregating 20 per cent of the total demand. Exports during 2020-21 rose to Rs 3,307 crores as against Rs 2,556 crores achieved during 2019-20. On the other hand, imports were reduced to Rs 8096 crores as against Rs 9,273 crores during the year. Digital printing is a happening segment in textiles. The new machines are versatile and fast and save on water. Hence, the demand is high for these. Weaving machines and spinning machinery and accessories are also imported.

The Indian textile engineering industry is operating at about 70 per cent capacity utilisation, serving 65 per cent of the textile sector’s demand. The Indian textile machinery industry has been experiencing tremendous growth over recent years, facilitated by the country’s booming textile and apparel market.

The Chamber of Industrial and Commercial Undertakings (CICU) says the decision to increase the goods and services tax (GST) on garments and textiles from five per cent to 12 per cent is ruinous and is seeking a rollback of the decision. It says the hike in GST rate will make it hard for the textile industry to survive and since it is already struggling for survival amid the pandemic this move will push it into a deeper crisis.

The hike is said to impact business at large as prices of woven and knitted fabrics, knitted garments, textile garments etc will increase. It is also expected to adversely impact exports as the sector will not be able to compete at the international market and will lead to rampant tax evasion. Rising prices of raw materials are already said to be taking a toll on the business. Since almost 90 per cent of fabric production in the country is in the unorganised sector, increasing the rate to 12 per cent for fabrics is expected to hit power loom and handloom weavers.

The manmade fiber sector would face a 12 per cent rate from fiber to garments, while the cotton sector would have a five per cent tax on cotton and yarn and 12 per cent for fabrics and garments.

Exports of synthetic footwear and sports shoes from Bangladesh grew 20 per cent in the past five years. From July to October of this fiscal, export earnings from non-leather footwear shipments were four per cent compared to the same period in fiscal year 2020-21. The industry’s annual export earnings gained 41 per cent last year compared to fiscal year 2017-18. The industry's annual export earnings had reached $344.46 million last year, compared to $244.09 million in FY2017-18, shows data from the Export Promotion Bureau.

Growth in shipments is due to increasing work orders from international buyers. The quality and reasonable prices of synthetic shoes made in Bangladesh have helped its exports thrive. And since the potential of the non-leather footwear sector is high, it goes head to head with garments as the country’s leading export earner. But even though the making of synthetic footwear is now a major industry, very few large-scale companies have shown any interest in it. So, considering the industry’s potential for growth, more professional and structured companies could do very well in this business.

Non-leather footwear now has greater export potential than leather shoes. As such, synthetic footwear makers performed well even amid the ongoing pandemic. The shift in demand from traditional leather shoes to non-leather or synthetic footwear is mostly due to the growing appetite from younger generations in the world.

Victoria’s Secret recorded seven per cent increase in sales for the third quarter. This performance reflects growth in all core categories. The brand is working at transformation, deepening customer connections and improving operational fundamentals.

But 45 per cent of the inventory the company had ordered for Fall has been held up due to supply chain disruptions. In particular, 25 per cent of the retailer’s pajama sets are currently late, at a time of year when they are popular as gifts. The retailer has taken measures to lessen the negative effects of the hold-ups, canceling some orders and attempting to avoid shipping issues by pivoting towards air freight, which will be used to import some 90 per cent of Victoria’s Secret holiday inventory. Nonetheless, freight issues may cost the company a total of $150 million in the third and fourth quarters.

Currently, Victoria’s Secret expects its fourth quarter sales to be in the range of flat to up three per cent compared to the fourth quarter of 2020. The company spun off from L Brands earlier this year and achieved net sales of $1.44 billion in the second quarter. This compares to sales of $1.35 billion in the same period in the previous year.

For the third quarter Gap’s net sales were down one per cent. Online sales for the quarter increased 48 per cent. Global supply chain disruption, including Covid-related factory closures and continued port congestion, caused significant product delays in the third quarter. Meaningfully reduced inventory positions throughout the quarter negatively impacted sales.

While Gap entered the third quarter with growing momentum, acute supply chain headwinds affected its ability to fully meet strong customer demand. Still, it made an intentional investment in building enduring customer loyalty with accelerated use of air freight to serve them this holiday, choosing long-term growth opportunity over near term impact to profitability. The aim is to restructure and digitize the business with an eye on creating a better future, faster.

The company remains focused on digital dominance through investing in its e-commerce platform, strategically closing unprofitable stores and partnering to amplify in international markets. Gap has entered into partnership agreements in the UK, Ireland, France, and Italy, which are expected to improve the profitability of its European business. The launch of a second Gap Home collection at Walmart has expanded its assortment to include furniture and rugs.

Gap is a portfolio of purpose-led, billion-dollar lifestyle brands including Old Navy, Gap, Banana Republic, and Athleta, and the largest specialty apparel company in the US.

The uniform goods and services tax (GST) rate at 12 per cent on manmade fibers, yarn, fabrics and apparel has addressed the inverted tax structure in the manmade textile value chain. The changed rates will help the manmade fiber segment grow and emerge as a big job provider in the country. The textile and apparel industry had for long been demanding the removal of the inverted tax structure on the manmade fiber value chain.

GST on manmade fiber, manmade yarn and manmade fabrics was 18 per cent, 12 per cent and five per cent respectively. The taxation of inputs at higher rates than finished products created a build-up of credits and cascading costs. It further led to the accumulation of taxes at various stages of the manmade fiber value chain and blockage of crucial working capital for the industry. The inverted tax structure caused an effective increase in the rate of taxation of the sector. The world textile trade has been moving toward manmade fibers but India was not able to take advantage of the trend as its manmade fiber segment was throttled by the inverted tax regime.

The 12 per cent uniform GST rate will reduce the compliance burden of industry players. Since a significant portion of manmade fiber products is expected to be exported, it will lend a better scope for encashing the unutilised input tax credit.

For the second quarter Kitex Garments’ consolidate profits rose 44.4 per cent to Rs 25.72 crore and sales went up 33.7 per cent to Rs 178.09 crore over Q2 FY21. Kitex Garments is engaged in manufacturing of fabric and readymade garments. The company operates through two business segments: garments and fabrics. The firm also exports cotton garments, principally infants’ wear. Kitex is a vertical set-up with knitting and processing of fabrics. The facility in Kerala covers an area of 1,80,768 sq ft, one of the largest in the world under one roof. The garmenting unit uses the latest machinery for pattern Computer-Aided-Design, plotting and grading. It has automatic spreader machines which enhance the speed of spreading and automated cutting machines for faster and precision cutting. Kitex employs nearly 4,372 people with a daily capacity to manufacture 3,60,000 units of infant garments.

Kitex Garments has incorporated a new subsidiary company under the name of Kitex Apparel Parks. The subsidiary company is engaged in the business of textile items, such as yarns, fabrics, garments, apparels made from natural or synthetic fibers or from blends of both including children’s garments, babywear, infants’ wear, menswear, women’s wear, irrespective of age limit and the like and also in procuring all the raw materials and other auxiliary material services required for the same.

Coats is bouncing back from the pandemic. In the three months to the end of October 2021, its organic revenue was six per cent higher than the same period in 2019. And the world’s leading industrial thread manufacturer is on track to meet its full-year expectations. Coats’ pricing and productivity actions continue to offset inflationary pressures. Overall in the latest quarter, on an organic basis, group revenue rose 22 per cent compared to last year. Strong operational performance, demand recovery, market share gains and customer wins have continued, despite recent lockdown impacts in Vietnam. The lessons learnt from shutdowns around the globe in 2020 mean the group continues to be well-placed to manage regional Covid disruption as its global footprint and organisational agility allow many of its customers to be supported from other manufacturing sites.

Coats continues to see positive end market sentiment across the US, Europe and Asia. For the remainder of the year, and into 2022, Coats will continue to drive profitable revenue growth by focusing on its strong customer relationships, digital innovation and sustainability credentials and ongoing pricing and productivity actions.

Pre-lockdown fitness trends are merging with pandemic-hit consumers’ love of all-things sporty and comfortable to carry on driving this segment ever higher.