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The German government will provide 7 million euros grants to Bangladesh to enhance the capacity of selected commercial banks to better address the funding needs of garment factories for their ongoing remediation work. The economic relations division and the German Embassy in Bangladesh have signed an agreement to roll out a project.
Muhammad Alkama Siddiqui, Additional Secretary of the ERD, and Thomas Prinz, German Ambassador, signed the agreement saying that financing of environment and safety retrofits in the Bangladesh readymade garment sector. The project will also support garment factories to bridge the knowledge gap in investments and remediation upgrades, and also aid the actual implementation of these investments. The funding would enable effective utilisation of credit, promote workers safety and improve environment standards in the apparel sector.
The project is a joint development effort by France, Germany and the European Union (EU). The objectives are to enhance the capacity of the selected commercial banks to better address the funding needs of RMG factories and support factories in bridging knowledge gap regarding investments and remediation upgrades and also supporting the actual implementation of these investments.
For the first quarter Century Textiles and Industries has gained massive profits compared to the same period last year. Net profit stood at Rs 36.83 crores compared to a net loss of Rs 2.3 crores in the corresponding quarter last year. Total income from operations rose four per cent to Rs 2,353.5 crores on a year-on-year basis.
EBITDA – earnings before interest, tax, depreciation and amortisation – grew 4.8 per cent to Rs 204.83 crores compared to Rs 195.37 crores as compared to the same period last year while EBITDA margins expanded 11 basis points to 9.67 per cent in the same period.
Mumbai-based Century Textiles and Industries is active in textiles, viscose filament yarns, cement, and pulp and paper. In the textile business, Century has two revenue streams: cotton fabric and denim units that can be integrated with ABFRL’s businesses. The company has a vertically integrated plant at Bharuch for manufacturing cotton fabrics. Century earned about Rs 1,817 crores, or 8.6 per cent of total revenues, from its fabrics and denim business.
The cotton division of Century is one of the oldest in India and manufactures a wide range of premium textiles and supplies to many international players, including Royale Linen, Ralph Lauren, DKNY, Belk and US Polo.
The American Apparel and Footwear Association, in collaboration with the Manufacturing Solutions Center (MSC), has released industry guidelines establishing testing standards for legwear, hosiery, and socks. Covering a range of issues - including product safety, labeling, and physical attributes such as color, fastness, and fit this resource provides useful, product-specific testing recommendations for the industry and its lab partners.
Rick Helfenbein, President and CEO of the American Apparel and Footwear Association says these testing guidelines are the latest in a series of member-driven tools that AAFA has released to help the industry ensure cost-effective solutions for common problems.
The legwear industry is unique explained Dan St Louis, Director of the Manufacturing Solutions Center at Catawba Valley Community College. Specific industry testing guidelines are long overdue to ensure the industry has the proper and specific guidance it needs to produce quality, compliant products.
This testing guidelines document is a free, open-industry resource that will be housed on the AAFA and MSC websites. Future versions will be released as updates become necessary.
"India's import of cotton woven fabrics has been moving south over the years. Cotton woven fabric imports during 2016-17 (provisional) at $133.46 million, is 18 per cent lower than in the previous year. Imports especially fell significantly from 2014-15. In that year, at $189 million imports were 28.71 per cent lower than in the previous year. In 2015-16, imports were to the tune of $163.19 million. 100 per cent cotton fabric accounts for over 50 per cent of total cotton fabric imports."
India's import of cotton woven fabrics has been moving south over the years. Cotton woven fabric imports during 2016-17 (provisional) at $133.46 million, is 18 per cent lower than in the previous year. Imports especially fell significantly from 2014-15. In that year, at $189 million imports were 28.71 per cent lower than in the previous year. In 2015-16, imports were to the tune of $163.19 million. 100 per cent cotton fabric accounts for over 50 per cent of total cotton fabric imports. However, its share in total cotton fabric imports has been falling steadily from over 65 per cent in 2012-13. Heavy cotton fabrics including denims, twills, etc., make up second largest share with over 32 per cent in cotton fabric imports.
The share of these fabrics has increased over the years from 23-28 per cent to the current level. In this category, denim fabric imports account for 37.8 per cent. However, imports have dipped on a per annum basis since 2013-14, when it was around $22.5 million. In 2015-16, denim fabric imports was $18.91 million which went down to $13.57 million in 2016-17, April-Jan.
MMF fabric imports
According to estimates import of MMF fabrics in 2016-17 are also down 10.55 per cent to $173.80 million. In the last few years, imports had shown significant increase. In 2013-14, it was $167.15 million around 14.38 per cent higher than in the previous year. Similarly, in 2014-15, imports touched $198.85 million that is a growth of almost 19 per cent. However, in 2015-16, imports were down 2.28 per cent to $194.30 million. And in 2016-17, provisional figures reveal, imports could be down 10.55 per cent. China remains the largest exporter of MMF fabrics to India, accounting for 73 per cent share. In cotton fabrics, China's share in India's imports is 65 per cent.
India's fabric demand
During April-January 2016-17, MMF fabric production at 12,118 million sq. m. was 5.79 per cent lower than in the previous year's period, reflecting lower demand for the fabric in the country. Lower exports of apparel and sluggish domestic retail market are the major reasons for the drop in fabric consumption. At present, MMF fabric imports account for just over 5 per cent of the domestic production. One needs to look at how apparel exports are expected to fare. Going by the global economic scenario, the market in US and Europe are going through a downturn, as a result, a number of large retailers are closing down. This will have an impact on India's apparel exports, and demand for fabric. Additionally, India's production and exports are heavily tilted towards cotton.
Meanwhile, minister of state for textiles Ajay Tamta had directed textile commissioner's office to gather data from ports all across the country about the volume of fabrics being imported from China. He feels this move would allow the government to decide on an appropriate duty structure for these imports. The ministry's decision to examine fabric imports follows reports that undervalued imports from China have paralysed Surat's MMF industry. Meanwhile, around 50 per cent of powerlooms in the cluster are running at 50-70 per cent capacity. However, low capacity utilisation was also a result of the government's demonetisation drive, which halted the cash transactions and trade in the industry.
Global leader in color and specialty chemicals Archroma has entered a collaboration with Patagonia, the American clothing company for its Clean Color collection, Patagonia has used dyes made from natural sources, along with other supply sources. Earth Colors by Archroma is a range of dyes synthesized from agricultural waste. It is plant-based dyes, sourced from up to 100 per cent renewable resources. The colors change and fade over time, which is part of what makes these dyes unique.
The selected Earth Colors dyes are the gorgeous palmetto green and citrus brown made from non-edible palmetto green parts and bitter orange peels left over from agriculture industry or pharmaceutical extraction.
Many of Patagonia’s synthetic dyes use less water, energy and Co2 when compared with conventional processes. However Patagonia, founded in 1973, always looks for ways to do less environmental harm. The company already collaborates with Archroma for its denim collection.
Archroma is committed to challenge the status quo in the belief that the industry can be made sustainable. Patagonia has chosen Archroma’s eco-advanced dyeing technologies for its newest sustainable clothing endeavor. The two support each other in accelerating sustainable concepts in the textile value chain.
After being embroiled in a controversy home textiles maker Welspun India has a system called Wel-Track that traces cotton from the source to the point of sale. While the system tracks physical verification on the floor, the radio-frequency identification device technology allows tracing the cotton from the farms to the gin (a machine that quickly and easily separates cotton fiber from seeds) to the spinning to weaving to the last end of a product, which is cutting suit.
There is also a QR code that can trace it back to the source. It has also tied up with one of the biggest farmers in the US for sourcing of Supima cotton. The company is starting to see good upswing in hospitality and expects three times growth in the next three years. Then it has health and wellness, e-commerce and its domestic brands apart from different channels of growth across different countries.
The portfolio of innovation contributes around 36 per cent of the turnover and 16 per cent is the brands. The biggest upswing for Welspun in the domestic market comes in the latter half of the year. Nearly 75 per cent of the selling happens August onward. Overall Welspun’s sales from online channels have seen a 40 per cent growth this year and in the next year a 100 per cent growth is expected globally, primarily in the US, UK and India.
Telangana is in the process of formulating a textile and apparel policy that contemplates waiver of personal loans of handloom weavers. Fresh loans are proposed to be given at three per cent interest. Subsidies will be given for capital investment and purchase of equipment by entrepreneurs. Tax incentives and power subsidies are being examined.
The policy targets investments for at least five international and 50 domestic companies and setting up of five new textile parks to generate employment for three lakh people, mostly women. The objective is to see that wages of individual weavers go up by at least 50 per cent.
Land for investors will be allotted from the land bank of the Telangana State Industrial Infrastructure Corporation. They will be invited to invest in the spinning, weaving, processing and garment sectors. Linkage of technology to existing facilities in the industry and skill development will be focused on. Housing for workers and staff is proposed within the textile parks.
There will be a 40 per cent concession on purchase of yarn by the textile industry in addition to the 10 per cent already given. A power subsidy for powerlooms operating with motors of 27 HP capacity is also being examined. The government will procure purchase orders from weavers.
Sustainable denim production isn’t merely about saving water. Water is less than 10 per cent of the waste of resources that denim production causes. Only seven per cent of water waste in the entire life cycle of denim is caused due to industrial production; 93 per cent is caused by consumers’ washing and ironing their jeans in order to keep their shape.
That’s not to say that water conservation isn’t a worthy cause, particularly in an otherwise water-intensive industry like denim. But a brand cannot call itself sustainable unless waste and environmental harm are slashed at every stage of production.
More than sustainability, it should be about responsible innovation. That means responsibility for production, responsibility in terms of respecting compliance, respecting ethics, respecting the people who work in the industry and respecting the communities in which industries operate. The denim industry has struggled to convey to consumers the post-purchase benefits of buying sustainably produced denim. Consumers should choose sustainable or responsible garments because of the fact they are nice and, on top of that, they are also reducing waste and helping the planet. Austrian fiber giant Lenzing offers modal black, a no-fade black denim that never loses color, even after 50-plus washes.
Indonesia is encouraging its textile industry to be environment-friendly, since it’s necessary for business sustainability. The United States and Europe have strict standards. Products containing hazardous chemicals are rejected. Environment-friendly industries fall into several categories. First, the industry does not pollute the environment of water, air, and soil. Second, the raw material can be recycled, re-used and is re-degradable. Third, the products used in production of finished products must be environmentally friendly. In addition, efficiency and effectiveness factor in energy use are also important factors.
The textile sector in Indonesia is expected to grow seven per cent this year. The country is trying to get the United States to reduce import duties on goods exported from Indonesia. In addition, rules for imports of textile and textile products have been tightened. And results are visible. Imports of fabrics as a raw material for garments fell by 33 per cent in the first quarter of 2017. The aim of discouraging fabric imports is to increase the utilization of national fabric production.
The textile and garment industry is one of Indonesia’s oldest industries. But Indonesia controls only about two per cent of the global textile market. Although Indonesia produces cotton, textile manufacturers prefer to import cotton because the quality of foreign cotton is much higher.
The new launched Remediation Coordination Cell (RCC) is supported by the International Labour Organization (ILO) with funding from Canada, the Netherlands and the United Kingdom. It will focus on managing the remediation process for garment factories under the Bangladesh government’s National Initiative.
The new unit will be staffed and supported by seconded members of regulatory bodies, including the Department of Inspections for factories and establishments, fire service and civil defense, RAJUK, Chief Electrical Inspector and public works department. They will be supported by private sector engineers hired to provide technical expertise for remediation follow-up. Speaking at the launch, Md Mujibul Haque, Minister of State for Labor and Employment said remediation of all garment factories must be completed as quickly as possible, and the RCC will make play a major role towards achieving this goal. Initially, the RCC will work with 1,293 factories.
The ILO asked for change as new factories are established and enter the National Initiative or as factories exit the two other inspection initiatives overseeing remediation. In addition to overseeing remediation process, the RCC will contribute to building capacity of regulators as well as further collaboration between them. As the work of RCC progresses, plans are on to put in place a long-term, coordinated approach to safety inspections and licensing.
The RCC has been established through the collaboration of the government of Bangladesh, Bangladesh Garment Manufacturers and Exporters Association (BGMEA) and Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA). The remaining 1,549 factories were inspected by the National Initiative supported by the ILO. Of those factories a number have subsequently closed, resulting in the 1,293 factories the RCC will work with. The RCC will be based at Pragati Insurance Bhaban in Dhaka’s Karwan Bazar area.
