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Ethiopia is to get two million units per annum capacity plant from Raymond, to manufacture and export woollen-blended, and cotton-blended jackets. This plant is being built at a total investment of $100 million and also to take advantage of a more favourable duty structure and local incentives.
The import duties of 1 per cent would not be applicable if Raymond exports from Ethiopia to the US, which it has to pay if it exports from India. Exporting to Europe from Ethiopia would save the company 8 per cent-12 per cent in terms of import duties while exporting to Japan would give it a preferential access. This is because Ethiopia has a 10-year duty-free trade agreement with the US, Europe and a preferential trade pact with Japan, whereas no such agreements or advantages are there for India.
The Ethiopian government is also providing land on long-lease to Raymond. It will also get electricity a third of the cost of power in India, apart from the labour charges, which are almost half of India. Therefore, the cost of production for Raymond would reduce in Ethiopia, with favourable trade pacts combined with lower operating costs. It would also provide greater access to two of the biggest market, the US, and Europe, and a preferential access to Japan, which is another large market, making it able to compete with other global companies.
Gautam Hari Singhania, Chairman and Managing director of Raymond, said about the move to Ethiopia that the growth prospects of Indian textile sector were ‘constrained by many challenges’ and globally, favourable trade policy reforms would allow the industry to expand its trade partners, improve its export competitiveness and contribute substantially to the nation’s income.
www.raymond.in
According to a stock market disclosure, the deal signed with Oasis Procon, by Wadia Group’s textile firm Bombay Dyeing & Manufacturing Company (BDMC) has been cancelled by the Wadia Group. The deal was for the sale of its textiles processing unit at Ranjangaon in Maharashtra.
The Delhi-based a textile manufacturer, Oasis Procon was required to complete the proposed transaction by July 31, 2015, according to the term sheet; however, it did not meet the deadline.
Bombay Dyeing had agreed to sell the textiles processing unit to Oasis Procon for Rs 230 crores ($36.2 million) in May 2015. The company also decided not to engage in the business of export of bed linen or bed linen fabric to the US for five years from the closing date as per the terms of the deal. The deal is part of the company’s plan to raise funds to repay existing loans, enhance working capital, and for other general business purposes.
Now, for the sale of this unit, Bombay Dyeing will negotiate with other potential buyers and seek the approval from its shareholders at the appropriate time. However, this won’t impact the company’s existing retail business Home & You.
www.bombaydyeing.com
Sunil Porwal, Additional Chief Secretary, Co-operative, Marketing and Textiles Department, Government of Maharashtra said that Maharashtra plans to open eight more textile and apparel mega parks in cotton belts to boost textile exports. The parks are to be opened in Beed, Jalgaon, Aurangabad, Buldhana, Akola, Parbhani and Jalna.
Porwal stated that pre-approved land banks would be earmarked by the end of November 2015, which is in addition to a mega park of 500 hectare already initiated by them in Amravati. They are offering interest subvention subsidy on machinery from 20–25 per cent and are also committed to put in proper affluent treatment plants along with these parks to protect the environment, he added.
At the CII Texcon 2015, a report on ‘Make in India’ for the textile and apparel sector released by Confederation of Indian Industry (CII) and Wazir Advisors urges for the government’s need to aggressively enter into as many Free Trade Agreements (FTAs) as possible with select textile markets in Asia and European Union. This is to safeguard the Indian textile and apparel industry against the impact of the Trans-Pacific Partnership (TPP) between USA and 11 other Asia-Pacific countries, mentioned the report.
To qualify for duty-free treatment, the yarn and fabric used in final product has to be manufactured in one of the free trade partners, under the pact. At present India exports yarn and fabric to Vietnam, which then exports the finished products to countries such as US; thus, the TPP will adversely impact the Indian textiles industry.
It is a combination of theory and visual display , for buyers to experience the hottest topics of textile industry. YiwuTex 2015 aims to introduce cultural and technological elements to knitting and garment enterprises, helping them to improve design and move towards sustainable and green production.
One of the biggest challenges for textile industry is sewage treatment. YiwuTex will invite experts from domestic and overseas environmental organisations to interpret the latest environmental technology applications and trends in printing and dyeing industry. It aims to help printing enterprises to achieve energy saving, pollution-free and sustainable production.
Focus on functional clothing trends
As people are increasingly aware of sports and health, functional clothing will be in focus at the event. YiwuTex will cooperate with Donghua University, Zhejiang Sci-Tech University and Hohenstein Institute to present the fashion trend forecast forum. The forum focuses on the latest design of knitwear and perceives new technology and applications of functional fibres. It helps to promote the combination of technology and fashion for knitwear industry, and lead the enterprises abreast of fashion trends and scientific research.
The rapid development of Internet is undoubtedly the most far-reaching revolution on all industries. Many companies are thinking about how textile industry could make use of its solid industrial base to create new advantages in the "Internet +" era and establish a new marketing model. The event will elaborate how to utilize Internet for intelligent production management and brand promotion.
R&D centre in association with Santoni
The organisers are also collaborating with Santoni, the knitting technology leader, to present a R&D centre. Santoni will exhibit a seamless business line from design, product development, production to sales and marketing, which is a totally innovative exhibiting concept and will definitely bring an unrivalled visiting experience. Santoni booth will be divided into four display areas, leading the experience of how world-class brands and suppliers work together for close collaboration, to make best-selling knitwear from new yarn materials. In the production area, you can try Santoni’s advanced circular knitting machines and get the latest automatic knitting technology.
In addition, the highly acclaimed ‘Knitting Collections Wardrobe’ will be presented at YiwuTex 2015. Collaborated with renowned exhibitors, knitwear collections will be displayed onsite to showcase the latest knitting technology.
www.yiwutex.com
Slow producer sales, lower crop prospects in India, US dollar index weakness and technically oriented buying have combined to lift cotton futures above the highs of the prior four weeks. Concerns about US crop quality also may have played a role.
Prices averaged 57.61 cents, up from 54.41 cents, reflecting gains to 12.62 cents from 10.94 cents in premiums over loan repayment rates. Deficit rains have stunted India’s crop growth and lowered expected yields. Rainfall during the southwest monsoon season (June to September) was 14 per cent below the long-period average.
The Cotton Corporation of India was expected to begin procurement under the minimum support program the third week of October. US total cotton demand remained estimated at 13.9 million bales, 9,20,000 bales below last season and the smallest since a similar offtake in 1988-89. Exports at 10.2 million bales would account for 73 per cent, with domestic mill use contributing the remainder.
Global stocks are projected to decline four per cent or nearly five million bales from the 2014-15 all-time high. The world stocks-to-use ratio is forecast at 95 per cent, down from 101 per cent last season, but well above the recent low of 40 per cent in 2009-10. China is expected to account for 61 per cent of the world carryover, similar to the prior two seasons.
The 11th International Cotton and Textile Fair, which opened in Tashkent on October 15, this year, saw more than 1,000 representatives of the cotton and textile companies and firms from 40 world countries participating.
The fair’s main objective is to expand the long-term cooperation with international organisations and foreign companies, analyse the trends and review the prospects for the development of the world market, and to inform the Uzbek cotton consumers about its quality and latest innovations in the areas of production cotton, trade and logistics.
The demand and supply, prices and factors of influence on the world cotton market, the state and prospects of production and marketing of cotton in Uzbekistan, were the topics of discussion at the conference.
The government of Uzbekistan with the assistance of the International Cotton Advisory Committee (ICAC) organises the fair annually; it is being held since 2005. Uzbekistan signed export contracts worth about seven million tons of cotton fibre at the fair, totally.
Globally, Uzbekistan ranks sixth for production and fifth for the export of cotton. Around 3.5 million tons of raw cotton and 1.2 million tons of cotton fibre are produced by the country each year. Companies from Bangladesh, China, and South Korea are the main buyers of Uzbek cotton.
The Saudi Arabian readymade garment industry is valued at about $4 billion, 90 per cent of which is imports from foreign markets. Roughly 10 per cent of the total value of Saudi consumer spending goes on garments and footwear and the figure continues to rise as population and income grow.
The garment industry in Saudi Arabia is still taking its first steps and is expected to come under fierce competition from global brands that will enter the market soon. The kingdom’s recent decision to allow foreign investors to venture into the local retail market could usher in major changes in the market and encourage local manufacturers to offer more competitive products in terms of quality and cost.
Women’s garments account for 54 per cent of the market and baby wear accounts for 15 per cent, while men’s garments make up only six per cent of the market. 60 per cent of textile sales occur during the months of Shaaban and Ramadan in preparation for Id.
The Saudi Arabian apparel market is heavily reliant on imports especially when it comes to fabric, cloth, accessories and readymade western clothes. There has been a shift toward branded apparel sold through international retail chains. Sales of branded apparels are estimated to be around 25 to 30 per cent of total apparel sales.
Nigeria’s glory days of textiles came to a painful end 14 years ago when most factories were shut down due to factors beyond their control. The ripple effect of the downturn of events at these factories was a tsunami of sorts leaving thousands of suppliers, food vendors and traders with nothing to fall back on.
Most children of the former textile workers are roaming the streets, getting involved in anti-social and criminal activities. Many ex-workers have been driven from their homes by their landlords, while others got divorced by their wives.
The textile industry in Nigeria faces problems of power, multiple taxation and other teething challenges. Administrative buildings have become dens of rats as well as snakes especially in the rainy season. The textile industry is reduced to producing nothing but customised fabrics for politicians, royalty and the well to do for wedding ceremonies.
Chinese textile traders among other outside textile industrialists contribute almost 99 per cent of the textile products sold in Nigeria. Areas that in the heydays of textile companies had thousands of factory workers are now ghost towns. The government’s intervention fund has not revived the textile industry due to policy somersaults and poor infrastructure. There is massive corruption in the disbursement of the fund.
According to industry sources, after the killings of two foreigners, business executives from global clothing giants H&M Inditex and Gap have cancelled trips to Dhaka this month. This has caused anxiety for Bangladesh’s $25 billion garment export sector.
For the year-end Christmas season, Bangladeshi suppliers to the world’s top brands said they didn’t expect the disruptions to hurt their orders. However, the pressure on an industry is increased by the attacks. The industry faces competition from other low-wage countries and is trying to repair its safety image after several fatal accidents.
Britain warned of more attacks after an Italian aid worker and a Japanese man were shot dead in a span of few days, and the US and Canada asked their diplomats to restrict their movements. Australia too, cancelled a cricket tour in the wake of the attacks.
However, Bangladesh’s government rejected the claim by the Islamic State and blamed the growing violence in the country on its domestic political opponents trying to show it in poor light.
Siddiqur Rahman, Chief of the Bangladesh Garment Manufacturers and Exporters Association said that their western buyers panicked after the killing of the two foreigners and some buyers cancelled their visits during the peak time when they place more orders.
H&M spokeswoman Anna Eriksson said that they were monitoring the situation in Bangladesh closely and they were taking appropriate security measures. Besides, she said, they were also in close dialogue with other brands regarding the situation. Gap, on the other hand, refused to comment on a change in its travel plans. Tesco said that they had asked its employees to be vigilant and consider their movements carefully, but had not stopped business travel to Bangladesh.
www.hm.com
Five leading Hong Kong fashion designers participated in the recently concluded Mercedes-Benz Fashion Week Tokyo 2016 Spring/Summer. They were supported by the Hong Kong Trade Development Council (HKTDC). Tokyo Fashion Week is one of the international fashion events throughout the year where the HKTDC organises Hong Kong designers to participate.
The ‘Fashion Hong Kong’ group show stole the limelight, grabbing the attention of fashionistas and industry players alike at this year’s Mercedes-Benz Fashion Week Tokyo 2016 Spring/Summer, which took place at Shibuya Hikarie.
Lulu Cheung, Chailie Ho, Polly Ho, Kathy Lam, and KOYO William were the participating designers. They received an overwhelming support from both the local and international fashion communities, and the show went viral on various social media channels.
A ‘Fashion Gallery’ Pop-up Showroom was also set up to facilitate networking and business opportunities besides staging the ‘Fashion Hong Kong’ group show. Over 260 buyers, media and fashionistas visited the ‘Fashion Gallery’. The designers’ sources of inspirations, such as music, movies, paintings, space travel, and nature, and their showpieces were showcased.
Hong Kong industries, such as the fashion industry get support by HKTDC by creating marketing opportunities. Besides the Tokyo Fashion Week, the HKTDC will also come together with designers to explore other fashion markets, such as participating in the Copenhagen Fashion Week and the New York Fashion Week, as the next stop abroad.
www.hktdc.com
