FW
"March 29, 2017 would be officially marked as the day when the UK government formally initiated the process of the country’s exit from the European Union (EU). While there are many speculations surrounding this move, analysts believe Brexit would bring good news for India. Well there are reasons for this analysis. After losing access to EU single market, the UK would like to develop trade relations with emerging markets and who better than India."
March 29, 2017 would be officially marked as the day when the UK government formally initiated the process of the country’s exit from the European Union (EU). While there are many speculations surrounding this move, analysts believe Brexit would bring good news for India. Well there are reasons for this analysis. After losing access to EU single market, the UK would like to develop trade relations with emerging markets and who better than India. India’s high proportion of skilled working-age population and high growth rate will be of particular interest for the UK. Potential sectors to benefit from an FTA between the UK and Indian include textile, machinery, engineering goods, information technology and banking.
What works for India
India has been putting greater thrust on innovation and high-end works. The country’s BPO market could see strong growth prospects if FTA between the two countries was to foster easy visa regime and greater market access for Indian firms. India is the major Foreign Direct Investment (FDI) source for the UK because many Indian firms have used it as a gateway to Europe. With the UK moving out of EU, it might not be as attractive for Indian firms as before. Naturally, the UK government would not like to miss out Indian investment and will try to attract them by offering more incentives such as tax breaks, easy regulations and opening up markets. The UK’s currency is expected to remain weaker for some period, which will prove to be less expensive for Indian firms to import from their subsidiaries in the UK.
Education industry also stands to gain from Brexit. There are possibilities that educational institutes in the UK might offer more incentives, which could essentially make education in that country less expensive. Importantly, in post-Brexit era, Indian students studying in the UK might get a more level playing field compared with other EU students who until now enjoyed an advantageous position.
The negatives
As the UK formally begins the exit process, analysts believe this scenario might compel several other European economies to consider referendums and renegotiation of terms with the EU. Apart from regional uncertainty, the changing dynamics might potentially impact India. While India currently enjoys improved macroeconomic stability, the country cannot be isolated from the impact of global and regional subdued growth. There needs to be renegotiation of FTA with the union amid the Brexit scenario. Additionally, a separate trade agreement with the UK might also need to be worked out.
There are expectations that immigration rules for Indians into UK might take on a relatively favourable stance. While this might imply positive news for Indian companies in the UK to expand workforce, companies with operations throughout EU will now have to reassess their workforce mobility, along with expansion plans and operations.
Rethink strategies
Reports indicate, deepening recession risks and unhedged exposure the British currency due to Brexit might impact IT demand, affecting revenues of Indian companies in the UK by almost 10 per cent. While the rupee is primarily anchored to the dollar, the currency is not completely devoid of volatility, necessitating RBI’s intervention when applicable. Reports suggest, currently, over 800 Indian companies in the UK employ over 1.1 lakh people. The top-growing Indian companies have generated over £26 billion in turnover in 2015. Additionally, the number of Indian companies in the UK is growing at more than 10 per cent given that Britain for long, has served to be India’s point of entry into Europe. While this might be an early phase to conclude the empirical impact of Brexit on India, is imperative, the above considerations demand a thorough assessment of evolving developments and prioritisation of contingency planning.
In 2016, the US was Vietnam’s largest export market. Textiles and garments dominate Vietnam’s exports to the US. Footwear came second. In 2016, Vietnam became the second largest exporter of footwear to the US. Exports of telephones and parts accounted for 12.8 per cent of the total value of Vietnam’s exports to the US market. In addition, computers, electrical products, spare parts, and components accounted for 7.2 per cent, wood and wood products accounted for 7.2 per cent.
In addition to key industrial products, Vietnam is exporting many agricultural products and fishery products to the US such as frozen shrimp, filleted catfish, filleted basa fish, processed tuna, processed crab meat, coffee, cashew nuts, and pepper.
Vietnam’s exports to the US in January-November of 2016 rose 14 per cent over the same period last year.
For the first two months of 2017, textile and garment exports to the US reached 1.7 billion dollars and footwear reached 653 million dollars.
Vietnamese enterprises have gradually matured and gained a lot of experience, thereby creating a firmer position for themselves in the market. By determination, perseverance, good will, modesty and sincerity, Vietnamese enterprises have increasingly won the hearts of American consumers.
South Africa is offering incentives to the textile and clothing sector. And part of the plan is to tighten control on imports and raise tariffs to the maximum level.
The main aim of the South African textile and clothing industry is to use all natural, human and technological resources at its disposal to make it the preferred international supplier of textiles and apparel. Although the industry is small, it is well placed to make this vision a reality.
Owing to technological developments that are closing the major product gaps, local textile production has evolved into a capital-intensive industry, producing synthetic fibers in ever-increasing proportions.
The apparel industry has also undergone significant technological change and has benefited from the country’s sophisticated transport and communications infrastructure. Some regions are renowned for a high fashion orientation while others focus on the mass market.
The South African clothing and textile industry offers the full range of services – from natural and synthetic fiber production to non-wovens, spinning, weaving, tufting, knitting, dyeing and finishing. Manufacturers are benefitting from retailers’ growing demand for locally made goods as the need for fast fashion takes hold. In order to keep up with latest trends, retailers have to source their products locally to have shorter lead times from design to delivery. As much as 25 to 30 per cent of locally sold clothing is manufactured domestically.
Premier Fine Linens makes 100 per cent fine cotton bed and table linen. The company is part of the Premier Group, one of India’s oldest and largest textile producers. Premier Group is India’s largest importer of Egyptian cotton and also uses the finest American cotton and superfine Indian cotton.
The company operates 3, 75,000 spindles. Fabric production for its own in-house brands is 4, 50,000 meters a month, with another 4, 00,000 meters for contract weaving.
The fine linen division uses 100 per cent cotton, organic cotton, Supima and Egyptian and Supima Tencel blends. All of the dyeing is done in-house, using organic dyes and low-impact chemicals. The company recovers, processes and re-circulates its own wastewater, using 99 per cent of its own supplies.
This division is investing in Monforts machines to enhance the quality of production. The machines are being installed at the fine linens mill in Tamil Nadu. They will handle widths of 3200 mm and typically be handling weights of between 125 and 250 g/m², although heavier fabrics of up to 450 g/m² can also be handled.
The Monforts machines will allow Premier Fine Linens to increase the innovations and product potential offered to customers and make possible better color control and better shrinkage.
Textile manufacturer Schoeller and Textilcolor the auxiliary and dye specialist have come together to create Ecodye. It is am innovative concept used in polyester dyeing. The technology accelerates the dyeing process and contributes to cutting costs, while at the same time helping to preserve the environment with a low level of demand on resources.
Ecodye allows eco-friendly and cost-saving dyeing for polyester yarns and piece goods. It shortens the heating phase, thus accelerating the process time by more than 30 per cent. At the same time it reduces energy consumption by 20 per cent and water requirement by 25 per cent as the goods can be cleaned in the cooling dye bath.
In addition, Ecodye improves the dyeing levelness in polyester textiles. Spots and dye agglomeration are almost completely avoided, and the precipitation on the goods that arises as a result of polyester oligomers are no longer evident. Ecodye provides good shade stability and avoids reproduction problems from batch to batch, thus reducing the rate of double staining and increasing the capacity utilization and productivity of the dyeing mill on a long-term basis.
The technology is being used by polyester-processing customers in categories including outdoor, sportswear and technical knitted fabrics, primarily in Europe, South and Middle America, Turkey, Bangladesh and China.
Apparel Textile Sourcing Canada will take place from August 21 to 23, 2017. The show is an opportunity for Canadian importers, manufacturers, retailers, designers and small businesses to get a first-hand look at global fashions, fabrics and textures that are in trend.
Top apparel and textile manufacturers from more than 20 countries will be participating. China, Bangladesh, India, Pakistan, the US, UK, Canada, Turkey, Jordan, Switzerland, Vietnam, Nepal and more will share with Canadians their latest products and production processes in an effort to forge new business relationships.
There will also be a display of unique artisanal apparel, textiles and related goods from Madagascar, Uganda, Lesotho, Ethiopia, Haiti, Bangladesh, Cambodia and Nepal. The 2017 show will see a larger delegation of exhibitors and speakers from both China and Bangladesh after the show’s successful debut last August.
As Canadian demand for apparel increases, goods are increasingly coming from abroad. Canada’s apparel imports were up 8.3 per cent in 2015. Domestic demand for apparel has increased annually since 2011. More than 40 industry experts will provide insights and expertise on all aspects of the apparel and sourcing industry. The exposition features workshops and seminars from the world's top experts in fashion, sourcing, logistics, marketing, government and many other topics.
The Brexit decision is looming large over the UK and the EU, with a great deal of uncertainty around important factors such as trade agreements, EU funding, and the flow of people between Britain and the rest of Europe.
Fashion and retail companies have seen solid sales since the decision. However this is often offset by a higher cost of raw materials and other imports. Fashion manufacturers have many suppliers in the EU, and argue that it will be impossible to fulfill all their needs from within the country. The weaker pound therefore makes material costs higher, driving up the cost of manufacturing and causing many companies to raise their prices. This then minimizes the sales benefits of having a lower pound. It will become more difficult for British fashion brands to compete with other European ones because their material costs are now higher.
It remains to be seen whether sales offset the increased production costs, but there is potential for beneficial changes to the market. Departure from the EU may bring with it new tax incentives and deregulation that help fashion companies to operate and thrive. While there are challenges to overcome, there will also be opportunities to take advantage of.
The Vietnam Saigon Textile and Garment Industry/ Fabric and Garment Accessories Expo 2017 (Saigon Tex 2017) opened in Ho Chi Minh City on April 5, showcasing a wide range of machinery and equipment and feedstock for the textile and garment industry. The expo spread over 35,000 sq.m has attracted nearly 1,200 exhibitors from 23 countries, including Belgium, Canada, China, Czech Republic, France, Germany, Hong Kong, India, Indonesia, Italy, Japan, South Korea, Malaysia, the Netherlands, Singapore, Spain, Sweden, Switzerland, Taiwan, Thailand, Turkey, the UK, the US, and the host nation Vietnam.
It’s hosting several seminars focusing on increasing the value of Vietnamese textile and garment products, investment opportunities in the textile and footwear sector and trade barriers from the free trade agreement between the EU and Vietnam.
Saigon Tex 2017 offers garment makers a gilt-edged chance to foster relations with foreign enterprises and explore investment opportunities, acquire technologies to increase local content in garment products and improve quality to meet the needs of local and international buyers.
After the Vietnam War, the southern city of Ho Chi Minh was the highlight of this expo. During the past 28 years, the organisers of the exhibition have always striven to introduce new generation of machinery, equipment and technology as well as input materials and accessories for the industry,
Rieter has opened a service branch in Turkey. The new branch complements Rieter’s strong presence in Turkey and provides state-of-the-art solutions and dedicated support to local customers.
The center offers both mechanical and electronic services. These include: revision of gear units, servomotor adjustments, as well as repairs and upgrades using original parts.
The branch also has a spare parts warehouse, where the most important and critical spare parts are available. These include, for example, control units, sensors and drive systems. This enables fast replacement and therefore minimum production downtime – for the benefit of customers, which can access these at short notice, especially in emergencies.
Switzerland-based, Rieter is the world’s leading supplier of systems for short-staple fiber spinning. The company develops and manufactures machinery, systems and components used to convert natural and manmade fibers and their blends into yarns. It maintains a global sales and service organization. Service employees with a high level of expertise are available there.
Besides original spare parts, Rieter also offers after-sales service products such as mill assessments to its customers worldwide. Other features include comprehensive after-sales solutions across all processes. This enables customers to increase their competitiveness over the long term. The product range is rounded off by installation and repair services, technology consulting and training.
Production of nonwovens and technical textiles has the potential to fortify the textile market in Belarus and make it a new hub for European textile production. Mogilevkhimvolokno, a textile company and the largest European producer of polyester yarns and fibers, will create a new industrial cluster. The first stage of this project will focus on production and processing of technical yarns, while the second stage will focus on production of products aimed at exports.
This new cluster will also house research and development facilities for testing and design of new products, and will operate from processing of raw materials to production of final products. Production from the cluster will be exported primarily to North America and Europe, with a special focus on Germany, where demand for technical textiles has increased substantially over the last few years.
The increased production that Mogilevkhimvolokno’s new project will provide is expected to contribute significantly to the overall success of Belarus’s textile industry and technical textiles, and will open new doors and opportunities for other textile manufacturers in the country.
Additionally, companies in Belarus are establishing contracts and agreements with companies in Pakistan to capitalize on the growing demand for yarn and technical textiles in Pakistan.
