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Tuesday, 02 March 2021 12:45

7th ITMA Asia+CITME to begin from June 12

  

The seventh edition of ITMA Asia + CITME will be held from June 12-16, 2021, in Shanghai. It will be spread over six halls with a gross exhibition space of 170,000 sq m. It will include major Belgian exhibitors such as Picanol, Vandewiele, BMSvision, Bonas, and Hammer-IMS.

The exhibition will also display latest innovations by Symatex a company managed by Agoria, the Belgian federation of the technology industry. The Belgian machinery industry is one of the nation’s biggest investor in R&D. It invests 8 per cent of its added value in R&D and employs over 11 per cent of the total Belgian manufacturing industry research head count.

The industry accelerated its research efforts on energy efficiency in the last decade and achieved an average energy consumption reduction for its products of 18 per cent. The long term strategy directs the Belgian machinery industry towards continuous strategic and open innovation to accelerate its product development pace and to provide its customers with cutting edge technology.

Tuesday, 02 March 2021 12:44

BTPL expands Tarapur plant production

  

India's largest single-roof state-of-the-art fabric processing facility, BRFL Textiles (BTPL), has expanded production at Tarapur plant from 100,000 meters per day to now 150,000 meters per day with improved capacity utilization within two months of raising private equity funding. BTPL aims to reach its annual processing capacity of 144 million meters over due course of time. Recently, BTPL invested Rs 2.4 billion from a consortium of marquee financial investors led by JM Financial India Fund II, Think Investments and others.

BTPL’s Tarapur plant is India’s largest single roof fabric processing unit supported by captive power, effluent treatment, RO water, and other utilities enabling cost competitiveness. The state-of-the-art multi-fiber fabric processing unit also has a captive yarn dyeing unit with an annual capacity of 29 tonne per day. BTPL’s solid and yarn dyed fabric, printing, processing, and finishing techniques are a mark of excellence making every piece of fabric perfect. The plant also employs over 2000 staff at the facility.

BTPL was formed as a separate entity in August 2020 as part of a restructuring process undertaken by Bombay Rayon Fashions, in which it hived-off its Yarn Dyeing & Fabric Processing units located in Tarapur, into BTPL by way of a slump sale on a going concern basis. The Company’s brands, including Bombay Rayon, BRFL, Linen Vogue, Giza Classe, Dickens & Browne and others, were also a part of the transaction.

  

In a letter to Union Finance Minister, Nirmala Sitharaman, Andhra Pradesh Chambers of Commerce and Industry Federation (AP Chambers) requested for the allotment of an Integrated Mega Textile Park for Andhra Pradesh. KVS Prakash Rao, President, AP Chambers, pointed out there is very less presence in the crucial weaving, processing and garments segments leading to heavy export of yarn that results in value migration from our state to other destinations. This also mandates the import of fabric for the apparel and garment units that are located in the state, leading to an increase in the cost of raw material due to logistics and loss of productivity.

Andhra Pradesh is ranked as one of the top five textile and clothing manufacturing states by the department of industrial policy and promotion which has released the top textile and clothing manufacturing Indian states based on ease of doing business. However, the state has not achieved much progress in terms of the value-added textile activities such as weaving units, knitting units, preparatory units, processing units, technical textiles, integrated units, which have a greater potential not only in terms of promoting value addition but also in creating large scale employment. Rao said, the state needs an integrated mega textile park in order to convert the major portion of the yarn produced in the state into fabric and garments within the state, to promote the state as a destination for global textile majors.

 

Vietnams market expansion to Northern Europe Australia can help avoid tradeAiming to achieve $39 billion in exports this year, the Vietnamese garment and textile industry has moved away from high-end apparels to mid-range and convenient products, says Vu Duc Giang, Chairman, Vietnam Textile and Apparel Association. Enterprises in the country are increasingly moving to making protective clothing and knitwear, adds Le Tien Truong, Chairman and Board of Directors, Vietnam National Textile and Garment Group in a Saigaon Online report.

Exporters focus on sustainability

Exporters are also focusing on sustainable apparels products that help minimize waste generation, enhance recyclability, and reduce the use of fossil energy. They are opting for chemical-free, environment-friendly fabrics that do not generate wastewater. The three development strategies being adopted include: review of ll changes in consumer demands in key markets; adopting green production technologies; developing products along with their brands. These strategies help exporters build a more sustainable market especially with the advantages Vietnam’s FTAs offer in terms of tax rates and competitiveness for garment and textile products.

It has become important for Vietnamese exporters to quickly adapt to these market changes as the pandemic had broken many raw material supply chainsVietnams market expansion to Northern Europe Australia can help avoid trade restrictions and resulted in bankruptcies to major global apparel brands. Exporters also need to reduce their production times as they may face logistic difficulties.

Avoid trade restrictions

Vietnam’s exporters also need to avoid being investigated for improper trade practices and imposed restrictions. As per the American Apparel and Footwear Association, the US government is currently investigating the possibility of imposing new punitive tariffs on imports, including garment and textile products, from Vietnam. In November last year, the US Department of Commerce (DOC) also initiated an anti-dumping investigation on polyester-textured yarn (PTY) exported from Vietnam.

As per Do Thang Hai, Deputy Minister of Industry and Trade, such trade restrictions on Vietnam’s exports are likely to affect domestic trade in international markets. Hence, domestic enterprises need to collaborate to prevent foreign enterprises from changing the origin of their products. The government needs to attract investments in domestic industries through preferential trade policies that would help it to reduce competitive pressure in the export markets.

Duc Giang also recommends enterprises to negotiate and sign strategic cooperation agreement with the US to increase export advantages in the garment and textile industry. Trade counselors also advise Vietnamese apparel and textile enterprises to expand their export market share to Northern Europe and Australia.

The import tariffs in these markets are extremely preferential as they have signed FTAs with Vietnam. Vietnam’s imports form a modest proportion of their total imports from around the world. Hence, Vietnam has an opportunity to increase its share in these markets avoid trade restrictions from being imposed on the country.

 

COVID 19 Lessons Retailers are more prepared for future calamitiesCOVID-19 has taught apparel retailers some very important lessons and that is: shifting retail online can be lucrative. Many retailers like China’s JD.com and India’s Arvind shifted operations to online platforms and emerged successfully from this crisis. Similarly, SMEs either ventured online on their own or joined large retailers such as Amazon and Flipkart, as a seller on their marketplace, thus gaining access to a slarge pre-existing customer base.

The pandemic also highlighted the importance of having delivery partners for retailers. Many offline stores entered logistics partnerships during COVID-19 due to acute manpower shortage. For example, Indian stores tied up with Zomato to supply groceries to consumers. Some retailers tapped RWAs to make bulk deliveries to housing societies.

New delivery concepts

Another strategy adopted by brick-and-mortar outlets included deploying third party carriers to ensure product delivery. However, this increasedCOVID 19 Lessons Retailers are more prepared for future

transportation costs for retailers. Hence, retailers have now decided to use the concept of ‘crowd sourcing’ in tandem with GPS technology and real-time notifications and get customers to be present in stores to make the last mile delivery.

The pandemic also encouraged retailers to introduce stringent measures to restore their consumers’ confidence. Brick and mortar stores launched new initiatives such as home delivery services, continuous sanitization of all outlets and warehouses, regular employee health checkups and doorstep e-payment facility. They also made masks and gloves mandatory for all employees coming in contact with the merchandise and introduced social distancing measures in their stores and warehouses.

Testing facilities at stores

Retailers also introduced testing facilities for customers using thermal scanners at entry points. They also deployed hand sanitizers, masks, gloves and shoe covers at their stores and ensured regular sanitization of handles and buttons, fumigation of the store area and provision of UV sterilization and sanitization tunnels. Some of the other measures taken by them included stocking FMCG goods at multiple points in large format stores, making pre-packs available for quick checkouts, restricting customer entries, allotting special timings for senior citizens, introducing a token system, one way aisles and self-checkouts at stores.

These initiatives coupled with a move to online platforms are making survival easy for brick and mortar stores. Hence, it is important for them to not forget the lessons learnt from the pandemic and be prepared for future calamities.

  

Pakistan Readymade Garments Manufacturers & Exporters Association (PRGMEA) has appealed the government to allow duty-free import of fabric under a simple and easy procedure instead of ‘Procedure of Duty Tax Remission for Exports’ (DTRE).

AdeebIqbalSheikeh, Vice-Chairman and North Zone Head, PRGMEA suggested the government to review its textile policy to remove hurdles hindering exports and to enable the textile sector to attain the exports targets. It urged the government to abolish all duties on the import of fabrics in line with the import relaxation provided on import of cotton yarn, as value-added garment sector is facing severe shortage of basic raw material of fabrics, which may lead to a drastic decline in value-added textile export.

PRGMEA also wants duty-free import of fabric, as the cotton prices find no respite from an unabated spike with the industrial input trading at season’s highest rates because its muted local production continues to widen demand and supply gap,Sheikeh added.

  

GOTS certified facilities increased by 34 per cent in 2020 to 10,388. 16 GOTS Approved Certification Bodies report that over three million people in over 72 countries were working in GOTS certified facilities. Tops 10 countries for certified facilities during the year included India (2,994), Bangladesh (1,584), Turkey (1,107), China (961), Germany (684), Italy (585), Portugal (449), Pakistan (391), USA (167) and Sri Lanka (126). GOTS approved chemical inputs increased by 13 per cent to 25,913.

The exceptional increase shows decision makers value GOTS as an important tool to drive sustainable transformation in a comprehensive way - from field to fashion. Using organic fibers and processing them under strict GOTS criteria definitely provides a credible and strong base for market players to be successful in the future, says GOTS Managing Director Claudia Kersten.

GOTS version 6.0, implemented from March 1, 2021, includes stricter social and environmental criteria. Certified Entities will now have to calculate the gap between wages paid to 'Living Wages' and will be encouraged to work towards closing this gap.

  

Bangladesh has appealed against Jakarta's imposition of safeguard duty on export of apparel items to Indonesia. On February 23, the committee on safeguards of the World Trade Organization (WTO) issued a notification on the duty imposition.

As per this notification, Jakarta imposed a safeguard duty ranging from $0.44 to $11.29 per piece on readymade garments (RMG) from Bangladesh, China, Vietnam and Singapore. The RMG items include top garments (casual), top garments (formal), bottom garments, suits, ensembles and dresses, outwear, babies' garments and clothing accessories, and headwear and neckwear.

Opposing this imposition, Hafizur Rahman, Director General-WTO Cell, Commerce Ministry, said a Bangladesh delegation comprising representatives of commerce ministry, Bangladesh Trade and Tariff Commission, and Bangladesh Garment Manufacturers and Exporters Association (BGMEA) took part in a hearing in November last year.

Indonesia's textile association appealed to the Safeguards Committee saying the country's RMG import was hurting the domestic apparel makers. Subsequently, the Indonesian Safeguards Committee conducted an investigation in 2017-2019 and came up with the measure.

  

Global fashion brands are expected to grant Philippine garment factories new orders worth $500 million as they start transferring production orders from troubled Myanmar to the Philippines and other Asian countries. Robert Young, President, Foreign Buyers Association of the Philippines (FOBAP) informs, the group has been securing relocated garment and apparel production export orders and inquiries on fresh buying import program from buyers like Zeeman Europe, Walmart, TJ MAx USA, and Hudsons Canada, among others. The association estimates orders worth $200 million to have been booked and FOBAP projects double in quantity in the coming three to four months.

New orders mostly comprise simpler and basic babies’ playwear, men’s athletic and sporting outfit, ladies’ dresses, and intimate apparel. He expects the orders to take total garment and hard goods exports to about $1.7 billion to $2 billion this year. Young estimates 10,000 to 20,000 jobs will be created in factories located in Metro Manila and Cebu.

To capture projected total export orders from top global fashion brands, Young urged the government to further support export activities, such as easing of the coronavirus quarantine and over restrictive pandemic regulations while still following the required health protocol amid the pandemic.

  

As per Asad Umar, Federal Minister for Planning, Development and Special Initiatives, Pakistan aims to introduce a new textile policy that will help the country maintain its current growth tempo. He said the textile boom, being witnessed in Faisalabad, clearly indicates the city was the main beneficiary of government's policies.

He dismissed allegations that the previous textile policy was not implemented in true letter and spirit and added that its positive results were reflected in the textile boom. He said, the government’s new textile policy aims to stabilize the gains of present policy. The government is focusing on strengthening the manufacturing sector with Chinese cooperation in the second phase of China-Pakistan Economic Corridor (CPEC).

He said government’s subsidy would benefit the textile sector immensely. He requested FCCI President Hafiz Ihtasham Javed to prepare a comprehensive report on the problems faced by the business community along with their solutions so that they could be incorporated into the budget for next fiscal year.

Javed said that if electricity and gas subsidies were withdrawn, industrialists would lose their competitive edge in the international market. He urged the government to take immediate remedial steps or else Pakistan would lose its hard-earned foreign markets.