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Halfway into the year, the Asian Development Bank has raised the estimated GDP growth rate for developing countries in Asia this year and next by a few tenths of a percentage point. In a mid-year supplement to its Asian Development Outlook report, which is updated twice a year, the ADB increased developing Asian countries’ predicted growth rate for this year from 5.7 per cent to 5.9 per cent, while next year’s growth rate was bumped up from 5.7 per cent to 5.8 per cent.
The report also suggests Cambodia’s inflation rate would increase from an earlier prediction of 3.4 per cent because of strong demand and increased food prices. The bank inched up its growth rates for Asia’s developing nations because the region saw higher local prices for consumer goods and a stronger demand for exports than originally predicted.
It has not changed its prediction for southeast Asia’s overall growth rate, which is still expected at 4.8 per cent this year. The Asian Development Bank was conceived in the early 1960s as a financial institution that would be Asian in character and foster economic growth and cooperation in one of the poorest regions in the world.
ADB assists its members, and partners, by providing loans, technical assistance, grants, and equity investments to promote social and economic development.
"The Ethical Trading Initiative (ETI) aimed at gaining access to highly restricted factories in the Tamil Nadu with a ‘hygiene awareness’ program and use that as a platform for promoting workers' rights. Five years and $630,000 later, the ETI, which brings together labels like H&M, GAP and Burberry with unions, factory owners and civil society groups, has done little more than teach workers hand washing, rue critics. Nambi Chelliah of the Centre for Social Education and Development part of ETI's initial meetings points out, it is more of image management. Brands are using the ETI platform to safeguard themselves."
The Ethical Trading Initiative (ETI) aimed at gaining access to highly restricted factories in the Tamil Nadu with a ‘hygiene awareness’ program and use that as a platform for promoting workers' rights. Five years and $630,000 later, the ETI, which brings together labels like H&M, GAP and Burberry with unions, factory owners and civil society groups, has done little more than teach workers hand washing, rue critics. Nambi Chelliah of the Centre for Social Education and Development part of ETI's initial meetings points out, it is more of image management. Brands are using the ETI platform to safeguard themselves.
Workers' representatives debate that employees in textile mills and factories have not benefited, with fair wages, contracts and a workplace free of abuse is still a distant dream for most. But ETI is in no mood to accept these claims. It counters saying progress has been made in Tamil Nadu through community programs and peer groups at factories and mills that discuss rights beyond hygiene. Alok Singh, ETI's South Asia head, was quoted saying this is the only large-scale initiative that is working within mills to address such issues and to build the trust of all concerned. We are showing such programs can work to the benefit of all.
Fuel to fire
ETI has been in existence since 1998 to address issues like child labour and workers' rights in countries including South Africa, Thailand and Peru, it began focussing on India's textile workers in Tamil Nadu in 2012. Singh says when the program started there was no appetite for transparency among mills themselves.
ETI staff infiltrated high-walled compounds where employees live and work, and went about asking women how often they brush their teeth, when they wash their hands and how much they spend on sanitary towels. Posters demonstrating the correct way to wash hands were put up near restrooms and adolescent girls were told to eat more greens and fruits. They were also taught how to deal with menstrual cramps with diet and medication. The initiative has contributed to an attitudinal shift within mill managers, who have seen the benefits of treating workers better, and allowing workers to be educated on their rights, Singh said.
While ETI officials feel the initiative have met with initial success, critics deny this. As a trade union member questioned freedom of association is in (the ETI's) code, so is assuring fair wages and making sure there is no exploitation. How will workers eat more fruits if they can't afford 1t? Activists and labour rights charities say ETI has failed to get brands to map and disclose information on supply chains – from the cotton picked in the fields to the buttons stitched on the garments – which is key to ending exploitation of workers.
Tim Connor, lecturer at Newcastle Law School in Australia and co-author of a 2016 report on ETI's effectiveness highlighted if they were more transparent about their supply chains, it would make it possible for global advocacy organisations to increase public pressure on companies to take action to ensure respect for labour rights. However, Singh observes transparency would increase as the initiative progressed and move forward next five years, ETI expects to have access to clearer supply chain information from participating brands.
Three big US synthetic fiber producers have filed petitions against China, India, South Korea and Taiwan for dumping fine denier polyester staple fiber into the US market. They say the fiber is sold in the US at less than fair value and this is hurting domestic industry.
The three fiber producers are: DAK Americas, Nan Ya Plastics and Auriga Polymers. They want the US to investigate the dumping and impose anti-dumping and countervailing duties on imports of the fiber from those countries. The petitions allege that producers in each of the countries are dumping the fiber in the US market at sizeable margins: 88.07 per cent to 103.06 per cent from China, 21.31 per cent to 29.7 per cent from India, 27.16 per cent to 45.23 per cent from South Korea and 29.32 per cent to 43.81 per cent from Taiwan.
Anti-dumping duties are intended to offset the amount by which a product is sold at less than fair value, or dumped, in the US. The margin of dumping is calculated and estimated duties in the amount of the dumping are collected from importers. Countervailing duties are intended to offset unfair subsidies that are provided by foreign governments and benefit the production of a particular good.
A garment fair will be held in Secunderabad from July 23 to 25, 2017. This is the consecutive 19th edition of the fair being organized by the Garments Manufacturers and Wholesalers Association (GMWA).
This edition will witness a much wider participation in terms of visitors and exhibitors, who are not only from Telangana and Andhra Pradesh but also from Mumbai, Indore, Ahmedabad, Bangalore and Ludhiana. The huge business potential this fair offer is primarily responsible for attracting major national brands. The strategic dates of the fair are also a contributing factor.
A variety of products covering cotton and blends, wovens and knits, treatments, finishes, prints and patterns, lines and stripes, embroideries and appliqués would be on display. Last year approximately Rs 40 crores business was generated with 3,000 delegates attending the fair.
GMWA was established in 1998 to cater to the needs of the garment industry in Andhra Pradesh. It provides an unique platform for garment manufacturers and wholesalers to interact with one another and with government bodies. It promotes and maintains a high standard of professional conduct and prevents abuses or malpractices in the trade. It also promotes and develops co-operation among members and associations connected with the readymade trade industry in Andhra Pradesh.
Egypt is devising a strategy to upgrade its cotton industry. The project aims at increasing the added value of Egypt’s long and extra-long staple cotton, improving the performance of cotton farmers and producers, and maximizing the role of institutions supporting cotton production.
The project will be implemented over two years and will include building the capacity of 400 cotton farmers and 15 private companies in the textile business, improving the skills of 300 workers and offering training programs for 300 technical students.
The textile industry in Egypt contributes three per cent to Gross Domestic Product and employs nearly a third of Egypt’s workforce. Textile exports account for 15 per cent of Egypt’s non-oil exports. But while Egyptian cotton is prized for its premium extra-long staple fiber, production and exports have been on the decline. Textile and apparel imports into the US from Egypt for the first five months of the year fell 14.5 per cent from the same period a year earlier.
The development comes as Africa gets renewed attention as a textile and apparel sourcing region after years of what the industry saw as untapped potential and the 2015 renewal of the African Growth & Opportunity Act the US trade preference program.
Sutlej Textiles’ total income for Q1 of fiscal 2017-18 stood at Rs 658.73 crores. EBITDA grew to Rs 76.28 crores. PAT was at Rs 23.58 crores and EPS was Rs 14.39. Now, Sutlej, one of India’s largest spun dyed yarn manufacturers, is undertaking brownfield capacity expansion of 28,800 spindles at its specialty synthetic yarn facility in Himachal Pradesh. The estimated project cost is Rs 215 crores and the project is likely to start commercial production from the fourth quarter of fiscal 2019. The incremental capacity would be dedicated towards manufacturing of 100 per cent polyester industrial yarn and other grey blended specialty synthetic yarn.
Another brownfield project, at Rajasthan, has 17 circular knitting machines and will have dedicated capacity focused toward producing value added cotton and cotton blended dyed and mélange yarn.
The company has invested in technology upgradation and debottlenecking. This will result in further improvement of efficiency and sustaining plant utilisation.
Sutlej has been able to achieve top line growth as new capacities have started commercial production, both in spinning and home textiles. Operations are expected to stabilise during the second quarter of fiscal year ’18. Value added products will be the profit driver in the future.
Footwear company Skechers’ quarterly net sales increased 16.9 per cent. This was due in part to a 6.4 per cent increase in the domestic wholesale business, an 18.6 per cent increase in the international wholesale business, and a 28 per cent increase in the global retail business.
The domestic wholesale business shipped 11.4 per cent more pairs, while the average price per pair fell 4.5 per cent. Growth came across Skechers’ three distribution channels—with double-digit increases in the company-owned global Skechers retail business as well as a mid-single-digit increase in its domestic wholesale business.
The launch of the ‘You’ by Skechers lifestyle and wellness line also contributed to the record sales performance, with strong sales in the sandal business, and the company reported double-digit growth in China, India, Australia, Germany and Chile.
In addition to record performances, gross profit in the second quarter increased to 47.6 per cent of net sales, and selling expenses increased to 9.7 per cent of sales, compared to 8.7 per cent of sales, in the prior year, due to increased advertising. Net earnings in the second quarter fell 19.7 per cent and net earnings for the six-month period were $153.5 million.
Puma’s currency-adjusted revenue for 2017 will rise by 12 per cent to 14 per cent. The German sporting goods maker unexpectedly reported a jump in quarterly sales and profits. Puma, which had already raised forecasts in April, is into the fourth year of a turnaround, balancing sportswear and street styles with the help of endorsements from celebrities including sprinter Usain Bolt and singer Rihanna.
Shares surged as much as 7.1 per cent, extending their gain this year to 44 per cent. Second-quarter sales rose 17 per cent, representing growth of 16 per cent at constant exchange rates. Operating profit jumped to euro 43.4 million from euro 11.9 million a year earlier.
German sports brand Puma, founded in 1948, designs, develops and markets footwear, apparel and accessories. Puma offers performance and lifestyle products in team sports, running and training, golf and motorsport. It also has a dedicated line of golf equipment, apparel, footwear and accessories.
Today, Puma is one of the world’s leading sneaker companies, with models ranging from innovative shoes such as the lightweight Faas running shoe to the heritage of the classic Clyde & Suede models. Its sport performance and lifestyle labels include categories such as football, running, motorsports, golf and sailing.
Despite the special package for the textile and garment sector unveiled by India in June last year, fresh employee registrations from the sector under the employees provident fund (EPF) scheme have been just 40,800 so far.
The Pradhan Mantri Paridhan Rozgar Protsahan Yojana (PMPRPY) was expected to create a crore of new jobs, increase India’s exports of textiles and garments by 30 billion dollars and result in Rs 74,000 crores of investments in the employment-intensive sector over three years.
The PMPRPY scheme has had a slow start, but it is now picking up. The rise in numbers could be attributed to more awareness of the scheme, attractive benefits for employers and the EPF’s amnesty scheme that remained valid for six months till June last.
Under the amnesty scheme, the government bears employers’ contribution of 8.33 per cent of basic pay to the Employees’ Pension Scheme (EPS) for new employees even if new posts are not created by the firm. The benefit was earlier available only for new posts created.
The PMPRPY scheme for the apparel sector was subsequently extended to the made-ups sector too. A budget of Rs 6,006 crores was approved for the scheme.
A revamped awareness program and a logo for the PMPRPY scheme will be unveiled soon.
Afghanistan wants to revive its textile industry and India is taking steps to help it. Afghanistan produces over 59,000 tons of cotton annually but there are no cotton processing factories in the country. In the past, there were at least seven textile manufacturing factories which the country lost during the years of wars. The sector employed over 30,000 employees.
Traditional textiles of Afghanistan reflect the diverse nature of the country. The designs, materials, and techniques of the traditional textiles of Afghanistan display varying ethnic and regional influences, creating a mixture of Middle Eastern and Central Asian styles that are further combined with those of the Indian subcontinent. Clothing and household furnishings feature vibrant silk and cotton fabrics, wool woven into intricate patterns, and lavish embroidery. Even utilitarian items like grain bags and animal trappings are beautifully decorated.
India will cooperate with Afghanistan to expand business in the field of textiles and clothing. Help from India will be in the field of textiles, clothing, cotton, manmade fiber and handlooms. India has agreed to provide all necessary assistance to develop the Afghan textile industry and assist in skill development, research and development, technical collaboration in product development and manufacturing, testing and certification and joint trade missions for mutual collaboration.
