FW
Denim textile and jeans are Nien Hsing’s two largest revenue contributors. Now in order to tap into the knitwear market, the company is opening a plant in South Africa. The unit will begin production by the middle of next year. The plant will have a capacity of 4,80,000 knitwear units. Taiwan based garment maker Nien Hsing Textile is looking to reduce its reliance on denim-related products and secure more orders from its existing brand customers in the US, who generate more than 80 per cent of Nien Hsing’s total revenue.
Nien Hsing has a monthly capacity of 4.4 million yards of denim textile and 1.8 million units of jeans. In the July-to- September quarter, the company’s net profit fell 51.9 per cent from a year earlier. Sales over the period slid 33.6 per cent, with gross margin falling from 11.9 per cent to 7.05 per cent. The company blamed last quarter’s sluggish performance to soaring cotton prices. Global cotton prices have risen by nearly 30 per cent so far this year, and cotton takes up more than 30 per cent of Nien Hsing’s total production costs. However, the company is relatively positive about its business outlook for the coming quarters, as cotton prices are expected to return to normal levels.
The Massachusetts Institute of Technology has used a 3-D printer to produce nano fibers. This helps avoid the need for cleanroom and will make the process cheaper. A 3-D printed micro fluidic device enables in creating uniform nano fibers which provides flexibility to the structure of the webs. The technique uses emitters or nozzles which have holes made through them. The fluid to be electro spun is poured into the holes until the holes are full. An electric field is applied to develop nano webs.
Nano fibers are produced by controlled chaos which in a way leads to variability in fiber size and less uniformity of the web. In other words, there is some sort of self-assembling process when the fibers are dispersed by electric field and collected on collectors such as screens. Patterns are obtained based on the nature of the collector. Nano fiber production techniques are evolving to have high productivity and have better control of the fiber and web uniformity.
The 3-D device is a step in the right direction. A nano fiber is a fiber with a diameter of 100 nanometers or less. Researchers are using nano fibers to make sensors that change color as they absorb chemical vapors.
Indorama Ventures’ core ebitda rose 34 per cent year on year. Core net profit increased 68 per cent. Operating profit grew by 46 per cent. Indorama Ventures is a chemical producer. With additional tailwinds from strong volumes and industry supply tightness, due to financial problems being faced by certain competitors in Europe and America, the company has further grown its top line and margins.
The third quarter concluded a great first nine months for Indorama Ventures. It delivered record earnings, beating expectations in all key financials metrics. This strong performance demonstrates the resilience of its business portfolio, and the benefits of its uniquely diversified and integrated business model, which are clearly bearing fruit with increasing momentum.
The company expects the positive momentum to continue in the fourth quarter due to the better margin environment, higher return HVA products, continued volume growth and the realization of full benefits from its strategic actions. The goal is to double ebitda every five years.
In September 2017, the company debuted in Dow Jones Sustainability Index and was ranked among the top five chemical companies globally. Meaningful developments in the PTA and PET businesses, the announced capital expenditure programs and the newly acquired businesses will all play a meaningful role in enhancing earnings growth in 2018 and beyond.
Made in Pakistan is being held November 10 to 12. Organized by Fashion Pakistan in partnership with the Trade and Development Authority of Pakistan (TDAP), this is a platform for Pakistani fashion designers to showcase their creations.
It is being held as a stepping stone for eminent designers who will be linked with the industry to produce collections for the export market. Besides providing them solid experience and mentoring, and a chance for their work and talent to be recognised, the aim is to encourage production of value added products.
The ultimate aim is to make the country’s fashion industry competitive in international markets by building on relationships with buyers, both overseas and domestic, and establishing and strengthening ties with international businesses. Made In Pakistan will showcase collections by: Amir Adnan, Aamna Aqeel, Fnk Asia, Nova Leather, Hassan Riaz, Tena Durrani, Deepak Perwani, Jafferjees X Wardha Saleem, Zuria Dor, Rizwanullah, Adnan Pardesy, Nauman Arfeen, The Pink Tree Company and Gulabo by Maheen Khan.
This year, Fashion Pakistan will be launching 10 emerging designers. TDAP, established in 2006, is the successor organisation to the Export Promotion Bureau and is mandated to have a holistic view of global trade development rather than only the export promotion perspective of its predecessor.
Elgi Equipments has joined hands with Indian Texpreneurs Federation (ITF) and designed a comprehensive program on air audit. The program includes information session for owners and managers on the best compressed air practices, practical training sessions for maintenance engineers and air audit programs that help recognise cost savings.
Energy conservation has become a focus for textile mills given the rising energy cost. The most expensive component in the total cost of compressed air is energy. Elgi is a Coimbatore-based air compressor manufacturing major. It is committed to 500 air-alert equipped machines by the end of this calendar year.
Under the Elgi-ITF program, air audits were conducted across 130 textile mills in the south over the past 12 months. The annual savings worked out to Rs 14 crores with an average compressed air energy cost reduction of 43 per cent.
Air audit is a review of use of compressed air, taking into account their generation and distribution. While review of generation is a comparison of energy consumption, current condition and application to original specification, distribution is evaluating the use of compressed air in the plant, which could include leak in the air lines and general consumption.
Elgi will look at such partnerships with machinery manufacturers across different sectors such as pharmaceuticals and automobiles.
China Hosiery Purchasing Expo (CHPE) will be held from March 26 to 28, at Shanghai World Expo Exhibition & Convention Center (SWEECC). The event will segment the exhibition sections by markets and set up specialty product zones for targeted promotion. It will witness more than 500 exhibitors from Turkey, Pakistan, Korea and Japan. The exhibitors will bring in various hosiery brands to the expo and present the latest global fashion of the hosiery products.
The expo serves global hosiery enterprises by building an efficient trading platform for exhibitors and purchasers and it is widely recognized in the hosiery industry. CHPE will showcase the complete manufacturing chain from yarns, finished socks/hosiery products, hosiery machines to packaging machines. It will also hold special exhibitions of a wider range of textile products such as hats, scarves and gloves as well as the augmented products of the hosiery industry in response to the needs of professional purchasers.
The expo is an international medium to showcase innovative and luxurious products and services to the Chinese market. It aims to meet qualified buyers, understand market demand, establish strong and solid business partnerships and find new business partners. It combines exhibitions, seminars, conferences, new product releases and designer networking under one roof to provide a complete cost-effective marketing platform.
British luxury brand Burberry plans to turn more exclusive. The plan appears to be an attempt to reinvent Burberry as a super-luxe brand, like Hermes and Dior, which have higher prices and margins than Burberry. Currently, Burberry handbags start at about thousand pounds while Hermes starts at three times that price.
It’s a textbook luxury brand re-positioning exercise, which should leave Burberry jostling against the world’s most exclusive names, with the margins to match. Burberry will be taken out of all but the most exclusive stores, starting in the US wholesale channel. Like-to- like retail sales were up four per cent in the six months to September, with the UK growing in double digits. Pre-tax profits also came in ahead of expectations. Overall revenues rose nine per cent. Rain-wear has boosted sales in the past six months, with the car coat and the tropical gabardine particularly popular.
China posted mid teens sales growth while Japan and Hong Kong returned to growth, boosted by Chinese tourists. True luxury brands command immense pricing power and generate fabulous margins and cash flows. They sell to wealthy consumers and just like their customers are more resistant to downturns.
"The Hong Kong Trade Development Council’s (HKTDC) mega promotion event, ‘In Style Hong Kong’, is underway in Malaysian capital, Kuala Lumpur. Two of the campaign’s highlight events are: In Style Hong Kong Symposium and In Style Hong Kong Expo. Y B Datuk Seri Ir Dr Wee Ka Siong, Minister in Prime Minister’s Department, Malaysia; Rimsky Yuen, Secretary, Justice, Hong Kong SAR; and Vincent HS Lo, Chairman, HKTDC, each delivered speeches at the opening ceremony."
The Hong Kong Trade Development Council’s (HKTDC) mega promotion event, ‘In Style Hong Kong’, is underway in Malaysian capital, Kuala Lumpur. Two of the campaign’s highlight events are: In Style Hong Kong Symposium and In Style Hong Kong Expo. Y B Datuk Seri Ir Dr Wee Ka Siong, Minister in Prime Minister’s Department, Malaysia; Rimsky Yuen, Secretary, Justice, Hong Kong SAR; and Vincent HS Lo, Chairman, HKTDC, each delivered speeches at the opening ceremony.
“The eagerly anticipated free trade agreement between Hong Kong and ASEAN will be signed soon,” said Lo. “The pact is a momentous one, as the world’s focus now falls on Asia to drive economic growth. Against this backdrop, the relationship between Malaysia and Hong Kong is taking on new significance.” He said China’s Belt and Road Initiative spans more than 60 countries, covering 30 per cent of the world’s GDP, presenting massive business opportunities for infrastructure investment, financial and trade integration, as well as social and cultural exchange. “A plan of this scale also needs us to work together. To mine the potential, Malaysian enterprises can work with Hong Kong, which offers unmatched advantages,” he said.
Trend-setting city
Rimsky Yuen, highlighting Hong Kong’s role as a trendsetting city in the region, he said he is confident ‘In Style Hong Kong’ will foster even closer and stronger links between Malaysia and Hong Kong. Building on the flourishing relationship between Malaysia and Hong Kong, the Hong Kong-ASEAN Free Trade Agreement and related investment agreement will be signed very soon. He went on to say “We are grateful to all the members of ASEAN, including Malaysia, for their contribution in attaining our shared goal. Not only will the free trade agreement provide an appropriate forum to further enhance the flows of trade and investment between Hong Kong and ASEAN, it will further strengthen Hong Kong’s role facilitating mainland China business to go global and overseas enterprises to enter the mega mainland market.”
YB Datuk Seri Ir Dr Wee Ka Siong, put the spotlight on FTA when he said “To further strengthen our relationship within ASEAN with Hong Kong, our government has agreed to ratify a free trade agreement and investment agreement between ASEAN and Hong Kong. Among other measures under this FTA, Malaysia will abolish import duties on certain trade goods and streamline our import regulations with those of the WTO.” He added the FTA will facilitate more effective and efficient trade links between the region and Hong Kong. This is significant for Malaysia, too, to take part in the ASEAN-Hong Kong trade, which generated $106.8 billion in total merchandise trade in 2016.
Showcasing advantages
This campaign seeks to promote Hong Kong’s multi-faceted advantages. Key events include a symposium on Hong Kong’s professional services, and the expo, which showcases products from Hong Kong’s leading brands. The symposium invited a number of Hong Kong and Malaysian business leaders and government officials to promote Hong Kong’s professional services. The speakers examined how Hong Kong’s service companies can help Malaysian companies expand their business. Five thematic sessions followed the main symposium, covering topics like e-commerce, Fintech, Smart City, Innovative Design and Marketing, and Legal Risk Management in International Trade.
The two-day expo was designed for buyers and representatives, from importers, distributors, retailers, brand agents, franchisees, department stores and specialty stores in Malaysia and neighbouring countries, to source stylish products created by Hong Kong companies. The expo featured 40 exhibitors showcasing Hong Kong brands in such sectors as home electronics, gifts and premium, fashion accessories and watches, and eco-friendly products. In addition, the Expo also displayed a range of award-winning products of the Hong Kong Smart Design Awards to showcase Hong Kong’s creative and design capabilities.
Portugal-based Tintex, caters to the athleisure and street sportswear markets. The company makes a sustainable range of precision, modern hybrid jersey fabrics. It has expertise in specialist dyeing and finishing techniques, coatings and applications designed with the latest equipments and processes. The collection called Naturally Advanced uses at least 60 per cent more sustainable materials such as Tencel, organic cotton, natural organic linen, and Ecotec by Marchi and Fildi, the smart cotton from pre-consumer scraps that saves water.
Now Tintex has made a range using GRS certified Roica premium stretch yarn, half of which comes from recycled pre-consumer waste. Other innovations include an extra fine jersey in 44 gauge using micro modal with an extra soft, water based coating for a translucent, sensual fashion tech product; luxurious base layers in extra fine gauges with improved breathable and thermo regulating performance, combined with moisture control, for the women’s wear luxury athleisure market; jerseys using BCI cotton, with a sensory touch and UV sensitive prints on an advanced water-based, formaldehyde and solvent-free coating for a sparkling reflective touch; new responsible blends that mix Tencel, recycled polyester and Roica Eco Smart family for extra high-tech multi performance benefits; and BCI cotton brushed fleece with a sophisticated iridescence.
Clothing companies in Zimbabwe are finding it difficult to import raw materials. Reason: banks failing to allocate foreign currency for imports. Companies have the orders, the capacity, and skills, but without raw materials, they cannot operate.
The industry needs an allocation of $4million of foreign currency a week to import the required raw materials that are not locally available. Most of its raw materials come from Asia, as that is the most competitive source of textile materials. As of now companies source what they can from the local textile industry and many companies rely on wholesalers who import fabrics for resale. The lead time when buying from Asia is long, and this needs financing, so many companies are struggling with this challenge and are unable to respond to the opportunities that exist in the market with the greater demand for locally made products.
Without fabrics, Zimbabwe can’t make garments, and since garments can’t be made, they are imported. So instead of importing only the raw materials and value adding them in Zimbabwe, the country ends up importing the finished product and paying another country for the value addition.
