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The resolution plan for bankrupt Alok Industries offered by Reliance Industries and JM Financial Asset Reconstruction is not a done deal yet. Some creditors have objected to the contours of the proposal and this would delay the process. The proposal says the lenders should assign their entire debt in favor of JM Financial ARC, which if done would take away their right to invoke personal guarantees given by the promoters of Alok Industries.
The dissenting creditors, around 18 per cent of the lenders in terms of the total debt, are opposed to assigning their debt in favor of JM Financial ARC. The sole bidder had offered a Rs 5,050 crore cash payment to settle the company’s debt of Rs 29,500 crores, implying that the lenders would get only 17 per cent of what Alok Industries owes them. However, in case of liquidation, the creditors would receive less as the liquidation value is only Rs 4,200 crores.
In almost all cases, banks have done a one-time settlement of loans while retaining the right to recover dues from promoters, but in this case, assigning debt means transfer of debt along with security from the books of the lenders to ARC.
As per latest Situation and Outlook report by the Ministry of Primary Industries, demand for NZ cross bred wool from China has just starting to return. Auction prices too have lifted slightly in recent months. The wool market had been struggling for the past 18 months or more. The main reasons were a lack of crossbred wool demand from China and increased competition from cheaper synthetic fibres. That had led to a build-up of inventory on farms and throughout the supply chain, which was slowly being worked through.
As opposed to crossbred wool, fine wool prices had reached record highs but fine wool accounted for only 8 per cent of production. The price difference between fine wool (less than 24.5 micron) and crossbred wool (over 31.4 micron) had never been greater. From January to March this year, fine wool export prices were five and a-half times higher than crossbred.
Around 100 North American and European brands, who participated in the US-based NGO Cotton Campaign, signed up for the Responsible Sourcing Network’s Cotton Pledge. The pledge requires these brands to boycott cotton from Uzbekistan. Almost all western brands are signatories.
These brands are protesting against the state-imposed system of forced labor, including children taken out of schools to harvest cotton, which has been in force since the days of the Soviet Union. The new President, Shavkat Mirziyoyev had promised far reaching reforms. But a report by the Uzbek-German Forum for Human Rights, which monitored the 2017 harvest, found evidence that state-sponsored forced labor continues, including in World Bank-funded cotton projects, contrary to the bank’s loan agreements.
Bennett Freeman, a co-founder of the Cotton Campaign and former Senior Vice-President for Calvert Investments, last month led a delegation of human rights, labor groups and supply chain specialists to Uzbekistan, and presented Uzbek government agencies with a roadmap for eliminating the systematic use of forced labor, starting with this year’s upcoming cotton harvest.
The Indian ministry of textiles has approved the first benchmark study to identify gaps and suggest measures for developing the man-made fibre (MMF) industry. The study will be jointly undertaken by the ministry in consortium with Synthetic Rayon Textile Export Promotion Council (SRTEPC). Both sides are shortlisting a competent agency for issuing request for proposals as part of the bidding process. The study will be completed in four months. It will suggest measures and innovative ideas to cater to consumer requirements and improve competitiveness of the Indian MMF textile both in domestic and export markets to help India emerge as the leading country in this segment.
India is the second largest producer of polyester and viscose in the world, but ranks 66th in export of MMF textile, which has been stagnant at around $6 billion in the last couple of years.
Bangladesh has demanded better prices for its apparel products considering the huge investments made by apparel manufacturers that have helped improve safety measures and the working environment. Garment manufacturers say they have modernized readymade garment factories and ensured building and fire safety with an improved working environment in place. Though they have invested a lot in these areas prices of apparel products have not risen.
Brands are generally paying less for garments from Bangladesh today than they did before the Rana Plaza disaster. The price of cotton boys’ and men’s trousers going from Bangladesh to the US has fallen 13 per cent in the years since the disaster. In the same period, the price paid for T-shirts exported to the European Union has fallen about five per cent. This happened even as cotton prices went up more than 20 per cent between 2015 and 2017.
The price drop over the last five years underscores the dynamics at play in the global garment supply chain. As clothing sales have become increasingly concentrated in the hands of massive multinational retailers who place gigantic orders, the buyer’s power—and ability to get cents shaved off the cost of an item of clothing—has become increasingly concentrated too.
Avantex Paris will be held from September 17 to 20. It puts innovation and sustainable development at the heart of services, materials or technologies for textiles and clothing. With some 30 exhibitors, the September show promises a wealth of materials and potential to be discovered by visitors keen on high-tech fashion.
Each season, Avantex Paris is certain to spark great interest among visitors with very topical propositions for products and solutions. Start-ups at the show attract labels, designers, other exhibitors, researchers or teachers, who see an opportunity to exchange ideas or compare their views.
Avantex has become a network, an aggregator of ideas, a lab that goes beyond the world of fashion in the strict sense. It provides a stimulus for every sector of fashion. Avantex Fashion Pitch, a competition organised in conjunction with its partner Wirate each season, allows a light to be shone on a budding new talent from the industry.
At this seventh show, Asia will be well represented with high-tech technical textiles from China and Taiwan. As for South Korea, it will be presenting its skills when it comes to outdoors materials from Bosung Textile, but also the best in applied research and experimental development from the International Korean Institute of Industrial Technology.
Jyoti Apparels has been awarded AEO Certificate by S Ramesh, Member (Admn.), CBIC. In view of growing concern among customs administrations about the threat posed through misuse of channels of import and export, there is a need to ensure security in global supply chain in international movement of goods. A business authorized by the customs as an AEO can enjoy benefit flowing from being a more compliant and secure company as well as favorable consideration in any customs proceedings coupled with better relations with Customs. AEO status will also ensure a low risk score is incorporated into customs ‘Risk Management System’ (RMS) and used to determine the frequency of Customs physical and documentary checks. The benefits may also include simplified Customs procedure, declarations, etc. besides faster Customs clearance of consignments of/for AEO status holders.
Jyoti Apparels says, “AEO is a very user friendly scheme providing several monetary and non-monetary benefits to importers and exporters. However, it has been seen that the entities are not showing full interest and not coming forward for the same. The custom department approach is very positive towards AEO program. In our opinion, more and more organizations should go for the affiliation of AEO program”
Pakistan Hosiery Manufacturers & Exporters Association (PHMA) has warned the government about negative effect on the country's export oriented sector with the proposed gas tariffs increase of up to 30 per cent for industries. The PHMA has sought a separate reduced gas tariff for export orientated industries. It argues the proposed increase will make exports costlier against key competing countries -- Bangladesh and India.
The export oriented industry is already facing multiple challenges in the wake of high cost of manufacturing, exorbitant utility tariffs, high labour wages etc. The association requested the PM to direct the concerned authority to introduce a separate gas tariff slab for textile export oriented industries and avoid any increase in key input rates.
Turkey’s Clothing Industrialists Association (TGSD) is confident that the textile sector will reach $18 billion or more in exports this year and $25 billion in the next five years. The sector made $17 billion exports last year. TGSD is now working to improve Turkey’s deteriorating image in the country’s and the sector’s top export market, the European Union. The country exported almost 72 per cent of its ready-made clothing to the bloc. The association has commenced proactive initiatives to boost its contract with NGOs in the EU countries, mainly in Germany, Spain, the United Kingdom and the Netherlands.
The sector also plans to improve the quality of the labor force to increase its competitiveness in global markets. Its five-year roadmap was based on three main pillars: making close contact with the sector’s markets, raising added-value in production and increasing sustainability. The sector increased its exports by 10 per cent in the first five months of the year compared to the same period of 2017.
There is a definite skinny bias among US retailers. Of the jeans offered for sale in one of the country’s largest malls, only 13 per cent would fit women of typical size or larger. Even online offerings don't get better. Only 19 per cent of the sizes available through retailers' websites would fit a woman with a waist larger than the national median.
If one were to line up the waist sizes of all American women, from smallest to largest, who are ages 20 and older, the number in the middle would be 37.3 inches. If one were to add all of those sizes up and take the average instead, the number goes up a bit to 38 inches. Most well-recognized retailers don't have either of those sizes in stock at their stores.
Every single store that sells women's jeans offers options for women whose waists are smaller than the national average, but only 50 per cent of stores have any sizes for women with waists larger than 38 inches.
Even of the stores that do offer at least one option larger than 38 inches, many of them only offer those choices online rather than in the physical building where consumers could try them on before making a purchase.
