Technical fibers with amazing high performance characters
Technical innovations that create high-performance fibers and fabrics continue to be at the forefront of product development in the textile industry. From cooling and insulating materials for active wear, to flame resistant, abrasion and impact-resistant fabrics for durable work wear, companies are reaching new heights through collaborations, and with research and development.
DuPont Industrial Biosciences is collaborating with Unifi to create high-performance, renewably sourced garment insulation, offering apparel brands a new sustainable choice for cold-weather products. This partnership combines DuPont Sorona polymer and Unifi Repreve to produce cold-weather apparel insulation that is soft and durable, with strong shape retention.
Repreve is a high-quality fiber containing recycled materials. Unifi’s proprietary process turns plastic bottles into certified fiber, which is then used in thousands of different fabrics and products.
Teijin Aramid has introduced Teijinconex Coolnex Super Wicking Fabric, a light-weight, soft and comfortable flame resistant fabric. The outstanding feature of this new fabric is a quick dry absorption of perspiration without losing its flame resistance. The innovative single layer fabric combines the best in personal protection fabrics with high performance sports textiles, providing high levels of thermal protective performance against heat, flames and flash fire.
Brrr uses a proprietary blend of natural cooling minerals embedded in yarn, superior moisture wicking and a patented knitting and weaving process that maximizes airflow to create a triple chill effect.
Tirupur speeds garment by rail through Cotton Express
The government has started Cotton Express by which garments are sent from Tirupur to various upcountry destinations through a non-stop train. The concept is the first of its kind in Southern Railway. Cotton Express services are tentatively planned on a weekly basis from Tirupur with the day of journey and the destinations to vary from week to week as it would be basically a demand-based operation. The first service was to Howrah.
The Cotton Express has 20 parcel vans and one second class luggage van-cum-guard coach holding a total cargo capacity of 468 tons. In the initial dispatch, the South India Hosiery Manufacturers Association was involved. The role of the industry associations in this hands-on venture is that they will coordinate with member units for clubbing together consignments for dispatch on the same day.
Grouping together the cargoes bound for any particular destination, which is left to the choice of Tirupur industrialists, would provide a win-win situation both to railways and industrialists. The train, being an express service, would take cargoes faster to a said destination vis-a-vis dispatch through lorries. For example, sending cargoes to Howrah will take five days if sent through lorry. But the train will now reach there in two days.
US lowers cotton estimate
Expectations of a record cotton yield this year in the US may be dashed. The main reason is the hurricane damage to crops. The US cotton yield estimate was downgraded by 19 pounds per acre. The downgrade – which followed a reassessment of crops in the light of Hurricane Harvey, which ravaged south east Texas, and Hurricane Irma, which struck further east – reflected reductions to expectations for both harvested area and yield.
The estimate for US cotton exports for 2017-18 is reduced too due to reduced US production and strong competitor shipments. The impact of the revisions has been to cut the estimate for the country’s cotton stocks at the close of the season by 2,00,000 bales.
On the other hand cotton shipments from Australia are expected to rise by 3,00,000 bales. The forecast for exports from India, the second-ranked shipper after the US, was lifted by 4,00,000 bales thanks to strong domestic production. Import expectations were raised notably for Vietnam, by 3,00,000 bales, on greater global supplies and attractive pricing. China may be poised to loosen import restrictions, after a second successful year of auctions to run down state inventories. However, China’s cotton import policy remains a major wildcard.
TPG plans to sell Vishal Mega Mart in a Rs 1,500 crore deal
Storied American private equity investor TPG has kicked off a process to sell India’s sixth-largest wholesale and retail chain, Vishal Mega Mart, in a deal that could value the company at over Rs 1,500 crore. TPG has appointed Kotak Mahindra Capital as a financial adviser to help in the sale of the asset it acquired seven years ago.
TPG owns the wholesale unit of Vishal Mega Mart, while the front-end stores are run by Chennai-based Shriram Group. Vishal Mega Mart operates over 350 stores in the country and had clocked consolidated sales of Rs 3,000 crore in fiscal 2016.
Vishal Mega Mart’s annual earnings before ebitda was Rs 70 crores. TPG is expecting Vishal Mega Mart to be valued at about Rs 1,500 crore, giving it a multiple of 20 times its ebidta. Avenue Supermarts, currently, trades at a valuation of 85 times its fiscal 2017 ebidta. But Vishal Mega Mart, which has struggled on profitability front, is unlikely to attract similar valuation multiples. As per reports, the Vishal Mega Mart deal could fetch between 20-25 times of ebitda putting it in Rs 1,500-2,000-crore valuation bracket.
The wholesale and retail segment in India has been witnessing consolidation as players look to push up scale and efficiency. Last week, Future Retail announced the buyout of HyperCity, a chain of 19 big-format stores, for Rs 655 crore, to increase its presence in the country. Some time ago, Radhakishan Damani, founder of D-Mart supermarkets, took control of Bombay Stores, a chain of department outlets.
Small artisans get linkages
Indian Handicrafts and Gifts Fair (IHGF) opened in New Delhi, October 12, 2017.
It has been organized by the Export Promotion Council of Handicrafts (EPCH). More than 3000 participants are displaying their products. EPCH has enabled small artisans with market linkage opportunities at the fair.
The handicraft sector is one of the largest employment providers in the country, with most micro, small and medium industries being engaged in handicrafts and allied sectors. The handicraft sector generates a large number of jobs with relatively much lower investments compared to large industry sectors.
There is a need for coordinated efforts among stakeholders in the handicraft sector to increase the market share of India in global handicraft exports. It currently stands at a meager five per cent despite the consumer demand showing an upward trend over a period of time.
Mudra extends business financing benefits to more than nine crore of micro level entrepreneurs of the country.
Fashion show adds glamor
The second day of IHGF added glamour with business with the organisation of a fashion show on the products being displayed by the participants.
The companies whose products were modeled on the ramps included bags from Veva Fashion, Jaipur, leather bags from MB Exports, Rajasthan, jewelry from FDDI Footwear Institute, Noida, and dresses from the north eastern region.
Buyers from different countries were also seen busy doing business with exhibitors on the second day of the fair.
Recycled products at IHGF
IHGF, the world’s largest handicrafts and gifts fair, is being held in Greater Noida, October 12 to 16, 2017.
A large number of overseas buyers are present at the fair. About 2980 exhibitors of home, lifestyle, fashion, textiles and furniture are participating. Over 6000 buyers from 110 countries are visiting the fair. Special attractions of this fair include a designer forum and recycled products.
The handicraft sector in India has witnessed a growth of 13.15 per cent in 2016-17 compared to the previous year.
EPCH supports the education of children of artisans through open schools which includes tuition fees and other study material. Seventy-five per cent of the entire expenditure will be borne by EPCH and 25 per cent by member exporters sponsoring the study of the children.
EPCH has a design register scheme under which member exporters can register their design without any hassle. EPCH design services are expected to augment the exports of handicrafts from the country and ultimately increase employment opportunities for artisans.
EPCH is providing full support through its integrated program of development of handicrafts and handloom of the north east which includes design, market and skill development.
A initiative is being taken for foreign direct investment in the handicrafts sector and joint venture opportunities for buyers and sellers i.e. both exporters and importers. Over 100 stakeholders have shown keen interest in the sector. A very large amount of investment from the US and Europe is already taking place in the handicrafts sector in China, South Korea, and Vietnam, which are competitors of India. This initiative will give opportunities to overseas buyers to bring technical knowhow, investment and their marketing network to form joint ventures for promoting Indian handicrafts in the world market. This is expected to give exports of handicrafts a new dimension.
Warangal durries will be now available to the world through Amazon
Amazon has signed an MoU with the Telangana Department of Handlooms and Textiles to help handloom clusters in Warangal, Pochampally. As the number of weavers has increased over the years sales haven’t gone up proportionally. Warangal has been making durries that use cotton and jute for 40 years. Durries have kalamkari patterns on them. Warangal durries or rugs have been famous for many reasons such as they are made using vegetable colours, and are washed in flowing water after the printing process.
Pitta Ramulu was also the first weaver to get a national award, he had won the ‘National Handloom Award’ for 2015. Ramulu’s durries can be now found on Amazon.Ramulu is hoping the number of orders increases. Orders haven’t picked up much. So far, he has got a few orders through Amazon.
As per the Handloom Export Promotion Council, Warangal has been a long-standing centre for durries and 80 per cent of the handwoven durries sold in European and American markets are woven in India. In March 2016, the Telangana State Handicrafts Development Corporation tied up with Amazon India to sell local hand-made ‘Golkonda’ handicraft products. Many weavers are also registered on the India Handmade Bazaar, a portal sponsored by the Government of India, which also sells Indian handlooms and handicrafts.
This is only one amongst the many initiatives that have been picked up to get more handicrafts and handlooms online and available to a larger group of people, including the Tribal Cooperative Marketing Development Federation of India Limited, a PSU under the Ministry of Tribal Affairs.
Currently, there are about 24 weaver associations and societies who have registered on Amazon to sell their wares.
The sustainable fashion business raises $5 million funds
With cotton being one of the top polluting industries, a world first Australian technology could contribute a positive change in the global $500 billion textile and fashion markets. Australian company Nanollose has raised $5,000,000 from investors, with ambitions to commercialise its sustainable fibre technology after an IPO on the Australian Securities Exchange expected for October 18.
Nanollose CEO Alfie Germano says this mark an exciting time for the company, with its world first Plant-Free Cellulose fibre set to potentially become a sustainable alternative to commonly used but environmentally damaging fibres such as cotton.
Currently, cellulose is obtained from plant sources like cotton, wood and bamboo, with the supply chains and procurement ecosystems of these industries raising ever-growing environmental concerns.
Germano who has held multiple VP positions at some of the largest global apparel brands including Gap recently stated that the funds will be used to accelerate the development of the company’s fibre technologies and build production supply chains with key partners, who will license and grow the fibre. The funds will accelerate the development and get a point where it could offer the fibre as a sustainable alternative to that of fibres derived from cotton and wood. He further adds that progressive brands and companies are starting to facilitate this new shift by involving themselves deeper in the supply chain and searching for feasible, sustainable long-term alternatives, and wants to be part of the solution. The reason is to feed sustainable alternative into the global industries with little to no retrofitting to existing machinery or processes.
Germano’s first target is the $500 billion global textile industry, and says there is increasing urgency from brands, retailers and manufacturers to seek and cultivate alternative fibre resources.
Global synthetic fiber prices on the rise
Average synthetic fiber prices increased sharply in September. Global synthetic fiber prices increased 17.5 per cent year on year and by 5.8 per cent over the prior month. Contributors to the price increases included constraints on supply, a temporary spike in oil prices and disruption in intermediates product resulting from hurricanes, and continued Chinese crackdown on violations on environmental regulations.
Although oil prices have already settled down from their hurricane-related increases, delays in expansion of resin capacity in the US and Europe have caused concern over polyester supply in both the short and the long term. In Asia, the largest manufacturing region for synthetic fibers, the price increase was felt most intensely. Prices increased in September by 24 per cent year-over-year and 9.4 per cent month-over-month. The biggest increase was in the polyester filament area. Nylon textile filament costs were similarly affected, though not as dramatically. Spandex, viscose and acrylic staple prices remained relatively stable. Asian synthetic fiber prices remain more than 20 per cent below the global average.
In the US, prices rose by 6.9 per cent compared to September last year and three per cent from August. In Europe, prices rose by 18.2 per cent year-over-year and two per cent from last month.
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Levi Strauss Q3 revenue up seven per cent
Levi Strauss has recorded seven per cent revenue increase in the third quarter. Direct sales to consumers grew by 16 per cent and wholesale revenue by four per cent. Revenue increases in the year’s first two quarters were four per cent and six per cent. Levi Strauss is the owner of brands Levi’s and Dockers.
The group also reported a 180 base-point increase in its gross margin. However, due to unfavorable exchange rate adjustments and a series of equity operations, Levi Strauss' net income was down ten per cent. The group’s EBIT was up one per cent compared to last year.
Despite the changes affecting retail, Levi Strauss has achieved profitable growth and is leveraging the strength of its diversified business and the confidence it has in its brands. Its advertising and media investment in the fourth quarter is growing exponentially. The launch of the jacket developed with Google, and the initiatives celebrating the 50th anniversary of the Trucker Jacket, reinterpreted by 50 celebrities, artists and influencers from around the world, will add great energy to the year-end for Levi’s.
The group has revised its guidance for the fiscal year 2017 as a whole, currently forecasting a growth between five per cent and six per cent.
Sri Lankan leather apparel maker LLF reduces carbon footprint
Leather garment manufacturer Lanka Leather Fashion is committed to promoting sustainability. Not content to only negate its overall impact, LLF improves its environmental performance year-on-year, and has even managed to achieve a notable 16 per cent reduction on its carbon footprint with a 11 per cent increase in production as well.
Founded in 1981, Lanka Leather supplies to prominent high-street fashion brands such as Hugo Boss, Gerry Weber, Michael Kors and Taleco. The organisation’s leadership in reducing and compensating for its environmental impact is getting much deserved attention from key decision makers and stakeholders in its global supply chains.
The manufacturer holds the title of Carbon Neutral for the third year in a row. This was awarded by UK based Natural Capital Partners. Carbon Consulting Company has conducted an in-depth assessment of LLF’s greenhouse gas emissions. LLF then invested in a renewable energy project in Sri Lanka to obtain registered carbon credits through Natural Capital Partners.
High quality, sustained volumes and competitive pricing have been key factors contributing to the success of Sri Lanka’s footwear and leather products industry. High quality Sri Lankan leather goods in the range of leather gloves, travel bags, back packs, ladies’ handbags, jackets and small leather goods cater to niche international markets.
Indian textile exports under pressure
Indian textile exporters are facing difficult times. They have been facing subdued demand trends in the key importing countries as well as intense competitive pressures from nations such as Bangladesh and Vietnam. In addition, unfavorable currency movements and high raw material prices as well as the recent revision in duty drawback rates have only added to their woes.
The slowdown in apparel segment has mainly been on account of subdued demand conditions in the key textile-consuming regions of the United States and the European Union, which account for a majority of exports from India. This apart, cotton yarn exports have been under pressure on account of a decline in demand from China.
India is the worst-affected nation among cotton yarn suppliers to China. India’s share in China’s cotton yarn imports has fallen to eight per cent in the first quarter of fiscal 2018 vis-à-vis 20 per cent and 25 per cent in the first quarter of fiscal 2017 and the first quarter of fiscal 2016 respectively.
Pressures on textile exporters have become more severe with the strengthening of the rupee against currencies of key competing nations during the current calendar year which has reduced the competitiveness of Indian exporters.
Indian exporters need incentives
Indian textile and clothing exports have stagnated during the last three years. One reason is the FTA/PTA competitive advantage gained by competing nations such as Bangladesh and Vietnam and the high tariff rates imposed on Indian textile and the clothing products in major textile markets such as the EU, the US, Canada and China.
So the industry has appealed to the Center to refund the accumulated input tax credit at the fabric stage in order to avoid cost escalation, encourage the Make in India initiative, reduce import of fabrics, avoid job losses etc. Certain GST anomalies need to be addressed on a war footing. The power loom sector and independent weaving units that produce over 95 per cent of the woven fabric are burdened with 18 per cent GST on yarn while the vertically integrated units do not have to face this problem as they need to pay 18 per cent GST for fibers and only five per cent GST on fabrics, and the cost difference works out to five per cent to seven per cent.
However, the entire cotton textile value chain and also all the textile job work come under the lowest and seamless slab of five per cent. The low rate will help protect the livelihood of over 40 million people involved in cotton farming and trading, make cotton the engine of growth for the Indian textile industry and clothe the people of the nation at an affordable cost.
