UKFT, Livery to hold one-day conference on best sustainability practices
A one day conference will be held by the non-profit organisation UK Fashion and Textile Association (UKFT) and the textile group, Livery to share best practice on sustainability within the UK textile industry and discuss the future course of the industry. The conference is scheduled to be held on May 12.
Speakers from UK manufacturers, global brands and a variety of textile innovators will share experiences to help businesses and the wider industry to promote their own sustainable credentials,
Leaders from UK textile manufacturers will learn about sustainability ideas for various businesses and how these companies are addressing challenges by emphasizing on how the UK textile manufacturing industry can use sustainability to boost its competitiveness.
Delegates should be leaders from UK-based textile manufacturing companies, rather than fashion brands, retailers, garment manufacturers or others from outside of the UK textile supply chain.
Tax increase may surge business costs for Bangladesh exporters: BTMA
Acceding to the textile industry’s long standing demand, the National Board of Revenue (NBR) in Bangladesh has initiated certain reforms to simplify the harmonized system (HS) code used for importing various spare parts of textile mills. The Bangladesh Textile Mills Association (BTMA) has been complaining for long about the rise in import prices of spare parts due to the complexities in HS code. The association has sent a list of 122 electrical, electronic and mechanical items to the NBR needs to include in the list of HS codes to make imports cheaper.
Inclusion to ease exporters’ complexities
As per a Business Standard report, a HS code is used by custom officials to identify export-import goods. The NBR currently has a list of HS Codes for over 200 items that received reduced tariff rates. However, the list was prepared two decades ago and does not include the new equipment and spare parts required by textile factories, says Khorshed Alam, Former Director, BTMA and Chairman, Little Star Spinning Mills. Manufacturers have to pay over 26 per cent duty-tax for commercial imports of spare parts, he adds.
Moreover Mohammad Ali Khokon, President, BTMA points out, manufacturers are compelled to use third and fourth generation machinery as it has been almost 20 years since the inclusion of equipment and spare parts on the reduced rate list. Hence, including the machinery mentioned in NBR list would ease the complexity and harassment faced by exporters.
Boost to local MMF production
The revenue board also plans to lower VAT on raw materials imports for blended yarn and fabrics like polyester, synthetic, viscose and Lycra. Another initiative on the anvils is maintaining income tax rate for textile and spinning mills at 15 per cent till 2026. The board believes, these initiatives will help the Bangladesh textile industry grow local MMF production and reduce cotton import bills. The initiatives will also complement the upcoming National Industrial Policy that proposes to grant import substitute industries tax breaks and subsidies.
Ministry urges for lower tax rates
The textile ministry has also urged NBR to extend existing lower tax on textiles. This will benefit entrepreneurs involved in yarn production, dying, finishing, coning, fabrics production, fabrics dying, finishing, printing and other similar activities, it adds. The ministry has also demanded maintaining existing tax rates to enable the textile sector to add 2.5 million spindles with an investment of $2.5 billion within 2023.
Currently, the import tax rate for ready-made garments in Bangladesh is 12 per cent while the tax rate for the textile sector is 15 per cent. For entrepreneurs having a sustainability certificate, the tax rate is around 200 basis points lower. The corporate tax rate in the country for publicly listed companies is 22.5 per cent and 30 per cent for non-listed companies.
Mohammad Ali Khokon, President, BTMA highlighted, the industry imported over 5.52 lakh tons of woven fabrics in 2021 as local spinning millers could supply only 40 per cent of domestic demand. He feels, levying a huge turnover tax on imports is likely to increase exporters cost of doing business in the country.
Focus on sustainability, energy and labor issues can strengthen Pakistan denim industry
Pakistan’s denim sector has strengthened its position in the global market with the rise of hi-tech players like the Artistic Denim Mills, Siddiqsons Group, Naveena Denim Mills, Azgard Nine, Rajby Industries, etc Karachi, Lahore and Faisalabad. The industry offers locally made products of exceptional quality that give importers best value for money, says Juan Chaparro, Group Director-Supply Chain, Sourcing and Quality, Primark. This has given impetus to denim exporters like ADM even as COVID-19 dented global denim trade.
Changing style preferences helps growth
One major reason for the sector’s growth is the change in style preferences among some consumers that has led to upgradation of wardrobes. Consumers are stocking denims with looser fits and wider-leg silhouettes from global brands. Growing casualization trend is helping in increasing the popularity of denim in Pakistan, explains Jen Sey, Executive Vice President and President, Levi’s. As per an OTEXA report, between January and September in 2021 Pakistan saw the largest year-on-year growth rate of 63.4 per cent among the top five, denim apparel exporters to the US.
The country’s exports to the EU has also doubled from 2015-20, as per the 2021 CBI report. Exports benefitted with exodus from China, due to Xinjiang cotton issues, increased prices and supply chain concerns, says Muhammad Tariq Rafi, Chairman, Siddiqsons Group.
Increased networking for greater branding
The Pakistan denim industry mainly benefits from the medium-staple cotton grown domestically. Other advantages are the long-term build-up of investment and clustering of infrastructure, adds Faisal Ahmed, CEO, Artistic Denim Mills. Over the years, the industry has witnessed growth of a vast network of smaller manufacturers who are making inroads. However, the industry suffers from a lack of perception, say experts. The volatile political climate and negative image across the world, causes denim industry leaders to lose sales to competitors, adds Ahmed.
To improve Pakistan’s national branding across the sourcing industry, the country’s denim suppliers are visiting clients with large stocks of denim samples in tow to trade fairs around the world, says Sheikh Raza-ur-Rehman, Director-Marketing, Garatex.
Energy crisis and labor issuesv Manufacturers are also dealing with energy crisis, which is being resolved through privately-owned generators and gas supplies, adds Ahmed. The industry also suffers from labor rights issues. As per Fair Wear Foundation report published in 2021, Pakistan has ratified 36 out of 189 International Labor Organisation (ILO) Conventions to date. Also, only 28 per cent garment workers are women.
With a greater emphasis on sustainably sourced materials across the fashion industry, the denim supply chain in Pakistan is attracting greater scrutiny due to larger impact on environment. However, exporters are now adopting sustainability measures in the form of waterless technology, recycled materials and sustainable fibers. They can continue growing by improving their sustainability credentials and overcoming long-standing issues like labor exploitation and energy shortages.
Odisha to set up Textile Park under PM MITRA Scheme
The Odisha government has submitted a proposal for establishment of a textile park under the PM Mega Integrated Textile Region and Apparel (PM MITRA) scheme. In all, the Centre has received 17 proposals from 13 states for the establishment of textile parks.
Odisha plans to set up the proposed textile park at the special economic zone (SEZ) of Tata Steel at Gopalpur in Ganjam. Around 1,000 acres have been identified by state-owned Idco within the SEZ for the facility.
The parameters devised for selection of sites for PM MITRA parks include connectivity to the site, existing ecosystem for textiles, availability of utility services at site, state industrial/textile policy and environmental/social impact
Though initially the textile park was planned at Neulopoi in Dhenkanal district, the location was changed as it comes under an eco-sensitive zone.
More collaboration between academia and industry needed: President. BGMEA
Faruque Hassan, President, BGMEA has emphasized on the need for more collaboration between industry and academia to support the development of the RMG industry especially by identifying areas of improvement and capacity enhancement and providing with knowledge and skills required to address future challenges.
During a meeting with Peter Lund-Thomsen, Professor, Copenhagen Business School, and Gavin Bridge, a professor at Durham University, Hassan said, the RMG industry has made exemplary achievements in terms of workplace safety, environmental sustainability, and workers' well-being.
An industry-academia collaboration can play a vital role in documenting these success stories to create a counter-narrative of the industry which will not only help to remove misconceptions and negative perception about the sector but also inspire others to follow them, he added
Puma launches project to recycle old football jerseys
Puma plans to produce new football jerseys out of existing ones by using an innovative production process. Aimed at reducing waste, this initiative will pave the way towards more circular production models for the brand in the future. Known as Re:Jersey the process involves recycling old garments featuring logos, embroideries and club badges into new ones. The Re:Jersey project takes football kits as the major ingredient to create yarn for new jerseys.
The project chemically breaks down old garments into their main components, filters out colors and chemically puts back the material together to create a yarn having the same performance characteristics as virgin polyester. It aims to reduce Puma’s environmental impact and reuse materials, says Howard Williams, Director Apparel Technology, Puma. The products made will be worn on-pitch during pre-match warm-ups by Puma Clubs Manchester City, AC Milan, Borussia Dortmund and Olympique de Marseille. The teams will wear the jerseys ahead of their respective league fixtures in late April and May, starting with Manchester City against Watford on April 23.
Archroma introduces two new dyes
Archroma is introducing two new metal and halogen-free* acid dyes, Navy S-3R and Black S-3N to its Nylosan S range. Especially developed for nylons and blends, these dyes meet long-standing market demands. As per an Innovation in Textiles report, the Nylosan S range offers alternatives to dyes generally used for nylon dyeing and contains metals. Both the new dyes offer a halogen-free option to traditional dyes.
The full Nylosan S range offers a wide range of colors, with the new dyes targeting the color matching and fastness specifications of the blacks and navies of major sportswear brands. These navy and black dyes display the same color constancy as the dyes used in many leading color standards. Both of them have high fastness and buildup, and a wide shading gamut for industry-leading metal-free acid dyes. They are REACH registered and bluesign approved.
Pull & Bear ventures into the metaverse
Pull & Bear has become Inditex’s second brand after Zara to venture into metaverse. Pull & Bear has launched a virtual reality project for the metaverse that features everything froma virtual showroom to a fitting room, and even a surfing game that allows users to interact with the retail brand. The brand plans to make the immersive experience available to users via the ‘Meta Quest 2’ virtual reality glasses. It will also make a portion of this new universe available through a web adaptation to enable users to access it.
To carry out this project, Pull & Bear launched six digital looks plucked from collections that are more geared towards generation Z. Developed in partnership with La Frontera VR and Meta Creative Shop, the digital project aims to create a universe where garments will be compatible with the Ready Player Me platform's apps and games, such as VRChat, Sommium Space, LIV and Animaze.
Founded in 1991, Pull & Bear focuses on the teen apparel market, alongside other Inditex-owned retailers such as Berksha and Stradivarius. It operates through its own e-commerce site and a total of 706 physical stores worldwide.
HD Wool to expand customer base in partnership with Rudholm Group
Manufacturer of HD® Wool Apparel Insulation, HD® Wool has partnered with Rudholm Group a leading global provider of sustainable garment accessories, sustainable packaging, state-of-the-art digital solutions, and logistical services for the textile industry. As per a Textile World report, the partnership aims to expand HD Wool’s growing customer base in Europe and Scandanavia.
Established in 1951, Rudholm has 22 global offices and nine manufacturing hubs worldwide providing sustainable product solutions to leading brands around the world. The company is the leading European distributor of garment accessories to outdoor and lifestyle brands and retailers. Through its collaboration with HD Wool Apparel Insulation, aims to offer verifiable, sustainable solution to customers looking for renewable, natural components to support their corporate sustainability objectives.
The partnership will enable the company to produce greener products with the least impact on the environment, says Mikael Dahlin, CEO.
India’s textile ministry sees huge scope for MMF segment globally
There is a huge scope for the manmade fiber segment both in India and globally, opines Darshana Vikram Jardosh, Union Minister of State for Textiles. Addressing members of the Synthetic and Rayon Textiles Export Promotion Council (SRTEPC) at its Export Award Function, Jardosh said, the government has approved Production Linked Incentive (PLI) Scheme for Textiles to boost the MMF sector in India. With an outlay of Rs 10,683 crore, the scheme aims to promote production of MMF apparel, fabrics and products of technical textiles in the country.
The government has also approved setting up of Seven Greenfield and Brownfield Pradhan Mantri Mega Integrated Textile Region and Apparel Parks with an outlay of Rs. 4,445 crore for seven years upto 2027-28. These parks will make the Indian textile industry globally competitive, attract large investment and boost employment generation.
The scheme of Rebate of State and central Taxes and Levies (RoSCTL) effective from March 2019 has been extended till March 31, 2024 for export of apparels, garments and madeups in order to make the technical textiles industry on par with the best in the world. In addition, the government is implementing various schemes viz the Amended Technology Upgradation Fund Scheme (ATUFS), Schemes for the development of the Powerloom Sector(Power-Tex), Scheme for Integrated Textile Parks (SITP), SAMARTH- The Scheme for Capacity Building in Textile Sector, etc. for attracting investments and upgradation of skills in the Textiles sector, said Jardosh.
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APLF to hold Fashion Access in Dubai this year
World’s leading leather trade show, APLF will host a Special Edition this year for the first time ever in Dubai. To be known as Fashion Access Dubai, the event will feature over 50 fashion-oriented exhibitors having the production capabilities and certificates to create fashion accessories ranging from bags, footwear, leather goods and leather garments. The event will attract top quality and innovative Original Equipment Manufacturers, Original Design Manufacturers suppliers as well as independent brands of bags, footwear, leathergoods, travelware and fashion. It will be held alongside the APLF Leather and Materials+ show, the leading international trade fair for innovations in leather, materials and components.
Strategically located in Hong Kong, APLF offers a professional business platform for suppliers to meet thousands of international buyers. Besides the well-established APLF Leather show, a separate show named Materials+ will be held to cater to the rising demand for innovative materials and components by the leathergoods and sportswear markets.
Bangladesh apparel exports to US, Europe grow despite the war
Russia-Ukraine war failed to impact Bangladesh’s apparel exports that grew 52 per cent year-on-year to $1.63 billion during the first two weeks of March. As per an RMG Bangladesh report, most of the growth was spurred by continued global demand and the country’s leveraging of anti-China sentiments in the US and European countries.
As per Bangladesh Garment Manufacturers and Exporters Association (BGMEA) the country’s apparel sector grew over 200 per cent year-on-year in a single day during the period even though Russian banks were cut off from SWIFT, the main international payment system, and shipping lines declined to carry any goods to the country
Future uncertain despite robust growth
Readymade garment exports grew 30 per cent to $27.49 billion from July to February’22 over the corresponding period in previous year, shows data published by the Export Promotion Bureau (EPB). Farque Hassan, President, BGMEA says, Bangladesh apparels exports recorded robust growth during the war. However, future cannot be predicted due to the current volatile situation. Apparel exports to the US surged during the period and are expected to continue growing.
Anti-China sentiments boost exports to EU, US
Fazlul Hoque, Former President, BKMEA and Managing Director, Plummy Fashions explains, increase in domestic demand too is a big reason for orders from the US market. US’ diversification from China is also encouraging them to place more orders with Bangladesh. Exporters to Russia are facing payment and shipment delays though buyers have assured them of receiving goods and making payments through alternative arrangements, he adds. Mostafiz Uddin, Managing Director, Denim Expert, Founder and CEO, Bangladesh Apparel Exchange points out rising freight costs triggered by the war, are also affecting apparel exports to Russia. However, Bangladesh’s exports to the US and EU are growing amid rising anti-China sentiments in these countries, notes Fazlee Shamim Ehsan, Vice President, BGMEA. Buyers in these regions trust Bangladesh entrepreneurs despite a significant rise raw material prices.
Exports to US surge 45 per cent
Office of Textiles and Apparel (OTEXA) stats indicate Bangladesh apparel exports to the US surged by over 45 per cent to $756 million in terms of value and volume in January 2022. In terms of volume, Bangladesh’s apparel exports to the US grew by 2.17 per cent to 282.38 million sq. mt. in January 2022 as it emerged as the single-largest export destination without any duty preference.
The US imported apparels worth $1.90 billion from China during the month while it received shipments worth $1.27 billion from Vietnam. US’ apparel imports from other major sourcing destinations, such as India, Pakistan and Cambodia, grew 53.40 per cent, 44.41 per cent and 42.12 per cent respectively. Overall, US’ apparel imports surged 36.60 per cent to $7.54 billion in January this year from $5.52 billion in the same month of 2021, shows OTEXA data.
Bespoke clothing market grows in India with personalized apparel production
There was a preference for bespoke or customized clothing in India long before ready-to-wear apparel made inroads in the domestic market. However, the entry and growth of international and domestic fashion brands in the 1990s gave rise to the ready-to-wear clothing culture in the country. Yet, there are many who prefer made-to-order clothes. They demand a better quality and fit in their garments over traditional ready to wear clothes that could often be ill-fitting. This is once again giving rise to the organized custom clothing sector in the country with a wave of new business erupting on high streets across metros.
Memorable shopping experiences for customers
Rather than just a product, these new companies focus on offering a memorable shopping experience. They offer a great alternative to ready-to-wear clothes through their adoption of a technology-focused lean methodology to test products, get user feedback and engage with influencers.
Rapid advancement of fashion technology is also enabling fashion firms to upgrade their supply chains, develop digital channels and increase revenues. The pandemic has compelled these companies to adopt change and technology innovations for more customer enhancement.
AR/VR and online marketplaces emerge
Many of these companies are exploring digitalization in the form of VR/AR configuration, 3D design and graphics, virtual fitting and trial rooms, digital Apparel, AI buyer prediction testing, etc. They are also employing sustainable materials. Others are developing a bespoke clothes online marketplace to help buyers select fabrics, accessories, and styles, as well as designers, tailors, and manufacturers.
Most of these platform use AI and data analytics to scan and analyze millions of data on different social media platforms. This helps fashion marketers estimate customer demand and trends accurately. With the help of data, companies can schedule their product releases. 3D software and apps enable customers try new clothes Buyers can also use the 3D design on the platform to take their photos and post them on the app. These photographs help buyers generate a 3D model to enable customers try on new clothes from their home. They can also use other apps including bespoke apparel design in 3D view, quick order tracking with ERP, confirming orders via WhatsApp using a 3D engine, and a virtual QR textile sample book, etc.
Another is uploading the photo of their preferred clothes from any source and identifying the most appropriate product from the brand’s website with the aid of visual AI, natural language processing, and tailored search engines.
Solutions for contact-free shopping
AR and VR systems can also serve customers for contact-free purchasing in retail stores. They can provide 3D e-commerce experience to help compare products from anywhere. Fashion startups across India are trying to build new technologies either internally or through collaborations. They aim to provide customers a lifetime shopping experience through technologies like 3D modeling and digital body measurement tools.
Some companies are expanding their collections to incorporate buyers’ traits and personal preferences and provide unrestricted customization.
New technologies to boost mass-customization
Despite the emergence of regional and internet players in India’s ready-to-wear apparel market, demand for customized clothing is set to grow. Introduction of new technologies is likely to encourage mass customization and personalized production. This will boost customized clothing trend which is set to growth at steady rate.
PEL’s turnover to cross Rs 414 crore by FY24
One of India's leading manufacturers and exporter of value-added specialty polyester filament yarn (SPFY) and embroidery and laces, Pioneer Embroideries (PEL)can cross turnover of Rs 414 crore by FY 24 from Rs 226 crores in FY22, according to a research report by Profit Mart Securities.
The report said that on the bottom line level, the company is expected to record a PAT of Rs 13 crore in FY22, which is expected to bounce back to Rs 16 crore in FY23 and Rs 21 crores in FY24. Thus on a conservative basis, PEL should record an EPS of Rs 5 for FY22.
PEL has its manufacturing facility for SPFY at Himachal Pradesh and runs three embroidery and laces manufacturing facilities at Gujarat, Dadra & Nagar Haveli and Tamil Nadu. It owns two strong brands, Silkollite in the SPFY segment and Hakoba , a heritage brand, in the retail segment for embroidered fabrics, garments, salwarkameezdupatta (SKDs) and sarees.
