The Cotton Textiles Export Promotion Council (Texprocil) has urged the Indian government to formulate a free trade agreement (FTA) with the UK. As per the council, UK is one of India’s largest trading partners amongst the European countries in the textiles and clothing (T&C) sector, accounting for almost 24 per cent of the T&C products exported from India to the EU region.

The country has already signed trade agreements with 62 countries ahead of the end of the Brexit transition period on January 1, 2021, including countries like Turkey, Canada, Singapore, Mexico etc. Therefore it is important for India to start the negotiations for this agreement if it does not wish to lose the first mover advantage and consequent market share, said Manoj Patodia, Chairman, Texprocil

Patodia also requested the government to simultaneously revive and expedite the FTA negotiation with the EU, as it is one the leading markets for India’s exports of T&C products where competing countries like Bangladesh, Pakistan, Vietnam have an edge over India due to a zero tariff arrangement.

Fashion brands including H&M and Nike are urging Vietnam to introduce Direct Power Purchase Agreements (DPPA) to help them meet their sustainability goals, reports Nikkei Asia. A consortium of international clothing brands, including Target, Mulberry, Mammut, etc which rely heavily on Asian garment factories, are under pressure from shareholders and consumers to reduce emissions in their supply chains.

The consortium -- which includes the second-biggest US mega-retailer, Target, UK handbag maker Mulberry and Swiss sports brand Mammut -- had hoped Vietnam would launch a planned DPPA pilot in 2020, but that has not happened. The national utility, Electricity Vietnam (EVN), has a monopoly on the country's power grid, but DPPAs would allow private producers to sell wind and solar power through the grid.

PVH Corp, parent of Calvin Klein, Tommy Hilfiger and others, also signed the letter as it aims to drive the fashion industry toward net-zero emissions in line with the goals of the Paris Agreement. H&M another signatory, said, the success of the DPPA pilot in Vietnam will also send important signals across the region as to the possible national actions available to meet the renewable energy requirements.

Organizers in Surat, Ludhiana, Mumbai and Greater Noida are set to organize physical shows across India. As per an Apparel Resources report, Southern Gujarat Chamber of Commerce and Industry (SGCCI) has announced the 5th edition of ‘Surat International Textile Expo- SITEX-2021’ from January 9 to 11 2021 at Surat. The event will focus on all sub-segments of the textile sector like machinery, accessories, yarn and fabrics. Spread over approximately 10,500 sq m, the event will feature over 100 exhibitors and international visitors from Vietnam, Bangladesh and Sri Lanka. Ashish Gujarati, Vice President, SGGCI says, the event will fully comply to the guidelines issued by the State & Central Government and will not allow spot registration of visitors during the exhibition.

Likewise, Garments Machinery Manufacturers & Suppliers Association will organize the 6th edition of its GMMSA Expo from February 26 to March 01 in Ludhiana. Gartex Texprocess India will also organize its show in Mumbai from March 18 to 20, 2022. Similarly, EPCH will hold the 51st Edition of IHGF–Delhi Fair Spring’ 2021 from March 13 to 17 2021 at Greater Noida.

United Kingdom and the European Union have finalized a post-Brexit trade deal that would wipe out duties on goods passing between the two regions. As per Apparel Resources, the new trade deal will wipe out duties on all the businesses including apparels and textiles. The terms are expected to be kicked in as of 1 January 2021.

The deal is expected to secure £7.4 billion worth of apparels and textiles exported annually to EU from the UK, securing thousands of jobs as well. Before the deal was signed, WTO rules caused a range of single- and double-digit tariffs on the UK exports which ranges from food to fashion products.

The EU is the largest trading partner of the UK and there was a 12 per cent duty levied on the clothing exports from the UK to the EU, while an 8 per cent duty was there on footwear export.

Nigel Lugg, Chairman, UK Fashion and Textile Association (UKFT), said, while we need to see the detail of the deal to fully understand the implications, UKFT will be working with its members to help the industry maintain and grow its exports to the EU and the rest of the world.

Almost 70 per cent respondents to the FICCI-Dhruva Advisors Survey, said shifting of global supply chains from China may benefit India by moving a fair share of manufacturing operations to India. The vaccine may also boost Indian businesses, said 74 per cent 1participants, says a SRTEPC report. However, to capitalize on these opportunities, India needs to strengthen its manufacturing ecosystem, says Uday Shankar, President, FICCI. Under the Aatmanirbhar Bharat package, the government has introduced several measures that have been well received by the industry.

Around 45 per cent of surveyed companies rated the latest set of announcements made under Aatmanirbhar Bharat package 3.0 as 'good to excellent'. To overcome the challenges posed by travel restrictions, 64 per cent firms plan to use a mix of travel and virtual meetings even after the situation becomes normal. Nearly 40 per cent reported operating at capacity utilization level of over 70 per cent, vis-a-vis 30 per cent of the companies in August 2020. Almost 50 per cent companies reported an increase in their order books and about 40 per cent said their exports have increased.

However, the survey results show businesses continue to face challenges on account of weak demand, managing costs, and financial liquidity, states Shankar. Hence, survey participants expect both government and RBI to continue with their support measures even next year. They expect the upcoming budget to prioritize growth-oriented measures, including a cut in direct tax rates.

Dinesh Kanabar, CEO, Dhruva Advisors LLP, says, the Union Budget 2021-22 is one of the most anticipated Budgets and the government should introduce new growth-oriented measures and tax cut proposals.

As per Khin Maung Oo, Representative, Myanmar Garment Manufacturers Association (MGMA), COVID-19 has led to the closure of around 100 Cut Make Pack (CMP) factories in Myanmar. Maung Oo said the pandemic has made it difficult for manufacturers to meet order deadlines, resulting in falling sales and forcing factories to either halt work temporarily or cease operations for good. Of the 700 member factories registered under the association, over 50 shut down during the first wave of the pandemic and another 50 closed during the second wave.

Aung Myo Hein, owner of a garment factory considers these closures necessary for their financial survival. Many of these suspended factories are owned by foreigners, mainly Chinese nationals.

As per a Textile Beacon report, India’s cotton yarn exports declined 7.5 per cent in volume to 87 million kg and 7 per cent in value to Rs 1,755 crore during the first eight months of 2020-21. Compared to exports during the same period of 2019-20, volume increased 8 per cent while value realization in rupee terms increased slightly, implying worsening of the rupee value against the dollar.

Shipment of cotton yarns to 70 countries in November increased 2 cents to $2.74 a kg, from previous month and 1 cent from a year ago. Export to China managed to remain just above November 2019 levels, while that to Bangladesh declined by 32 per cent. Exports to Peru and Vietnam almost doubled their imports of Indian cotton yarn while Portugal reduced them by 15 per cent. Shipment of spun yarns totaled 110 million kg worth Rs 2,160 crore in November.

Shipments declined 6 per cent than November 2019 in terms of volume and 7 per cent down in terms of their value in dollars. China once again was the largest importer in spun yarns with its import value increasing by 6 per cent, followed by Bangladesh. Together, these two markets accounted for about 41 per cent to total yarn shipment during the month.

VF Corporation has completed its previously announced acquisition of Supreme®, a privately-owned global streetwear brand, for an aggregate base purchase price of $2.1 billion subject to customary adjustments for cash, indebtedness, working capital and transaction expenses.

As a result of the transaction, Supreme® has become a wholly owned subsidiary of VF Corporation. The acquisition of the Supreme® brand accelerates VF’s consumer-minded, retail-centric, hyper-digital business model transformation and builds on a long-standing relationship between Supreme® and VF, with theSupreme® brand being a regular collaborator with VF’s Vans®, The North Face® and Timberland® brands. Supreme® is expected to be modestly accretive to VF’s revenue and adjusted earnings per share in fiscal 2021.

The Supreme® brand is expected to contribute at least $500 million of revenue and $0.20 of adjusted EPS in fiscal 2022.

As per OTEXA, PPE imports by the US surged by 311.60 per cent during January-October ’20 period in value terms.

Total PPE imports by the country valued $16.58 billion in January-October ’20 as against $ 4.03 billion in the same period of 2019, reports Apparel Resources.

The rise in PPE imports is attributed to ongoing pandemic, which has caused massive disruption not just in the country’s healthcare sector but also across industries.

Of total import values, nonwoven disposable apparels – designed for use in hospitals, clinics, labs or contaminated areas – contributed $3.88 billion under 6210105000, noting 484 per cent yearly growth.

The import value of nonwoven disposable apparels remains the highest standalone value amongst total 23 HS Codes under which USA imported PPE products this year.

The import of face masks, which clubs 5 HS Codes 6307909845, 6307909850, 6307909870, 6307909875, 6307909891, valued US $ 7.41 billion in the said period. OTEXA shows no data for corresponding period of 2019 for face mask imports.

As far as import of plastic/rubber gloves (a combination of 7 HS Codes – 3926201010, 3926201020, 4015110110, 4015110150, 4015190510, 4015190550, 4015191010) is concerned, it valued US $ 4.47 billion and upped by 70.61 per cent.

Home textiles company Welspun India’s Q2 FY 21 income grew 8.5 per cent to Rs 19,926 million as compared to RS 18,371 million in the same quarter previous fiscal. The company’s EBITDA remained stagnant at Rs 4,048 million. The company fully recovered from lockdown’s impact and plants worked at full capacities. In home products portfolio volume of bath linen and bed linen segments grew 13 per cent each YoY.

Predominantly a B2B textile home products’ supplier to global retailers, Welspun is also evolving into B2C home textile player with direct connection to end consumer. Besides, encouraging growth in its own global and domestic brands, the company expects its licensed brand and e-com businesses to cross $100 million, each, over the next 2 to 3 years of time.

The company is currently upgrading its systems, tools, processes, and up-skilling people while establishing 'digital as the new norm' in our organization, said BK Goenka, Chairman.