Pakistan’s textile sector is expected to hit the $20 billion export mark by the end of this fiscal year. However, experts are urging the government to provide low cost and smooth supplies of power and natural gas to ensure that Karachi—the country’s financial hub—does not experience the extinction of its industrial sector.
As per a Nation report, Pakistan’s textile sector accounts for about 60 per cent of overall exports from the country; yet, millers claim that they are receiving minimal facilitation from the government. The sector has grown by around $4.6 billion compared to June 2021, as per figures from the All Pakistan Textile Mills Association (APTMA).
Due to poor energy provision, textile mills in the country are operating at less than 75 per cent capacity. A further continuation of this trend may result in a loss of $250-400 million in exports each month, as per ATMA. The ban on energy supply is expected to increase gas prices further with the Oil and Gas Regulatory Authority (OGRA) announcing a 45 per cent hike in the tariff of natural gas for the next fiscal year starting from July 2022.
APTMA urged the government to prioritize sectors on the basis of performance—especially with regards to exports—and facilitate key industries on the basis of economic rationale and nothing else.
Pakistan’s textile exports reached their highest growth levels of $17.67 billion in July-May financial year (FY) 2021-22. As per a report by the All Pakistan Mills Association (APTMA), exports grew 28.5 per cent Y-o-Y over $13.76 billion recorded in the same period last year. The industry grew to $20 billion during the year compared to $15.4 billion in June 2021, says the report. Textile exports grew 59 per cent Y-o-Y from $1.06 billion in May 2021 to $1.69 billion in May 2022, show figures from Pakistan Bureau of Statistics.
On a month-on-month (M-o-M) basis, Pakistan’s textile exports declined by 3 per cent to $1.69 billion as compared to exports of $1.74 billion in the previous month. Despite the tremendous growth achieved by the sector, it had to face shutdown of 25 per cent of the required volumes of gas/RLNG supply in May 2022. The government’s decision to halt the supply of gas/RLNG to exporters was considered highly illogical as it is a critical input to textiles, the single largest contributor to Pakistan’s exports and the mainstay of Pakistan’s economic future.
APTMA has urged the government to restore gas supply to the export industry and recognize the immense loss and damage to Pakistan’s economic this will cause in future. Loss in production will lead to export reduction and drop in forex. Due to poor quality grid electricity and non-supply of gas/RLNG, mills are operating at less than 75 per cent capacity, which if continued will incur a loss of $250-400 million in exports each month.
Recurrent lockdowns to curb COVID spread have led to supply chain disruptions in China besides price rise and sales decline. Shutting down of Shanghai, one of the biggest ports in the world caused interruptions in the supply of goods ranging from technology and cars to beauty and fashion in the country. A prominent clothing manufacturer, to US-based brand Under Armour had to cancel several orders owing to the crisis, reports Drapers Online.
China’s supply chains have become hugely disorganized, making it difficult for brands to get required material on time, says Patrik Frisk, Outgoing CEO, Under Armour. Besides production, sales of many global brands operating in China have also been impacted. Adidas China sales declined 35 per cent Y-o-Y during the in the first three months of 2022 due to the challenging environment. Similarly, Moncler had to temporarily close 30 per cent stores in China.
Stock delivery to UK also slowed down, causing delays of four to six weeks for global brands, says Mark Hollis, Shani Group. Supply from China is taking nearly 12 weeks to reach destinations, adds a UK-based clothing supplier. Delays were attributed to slow pace at China’s ports six weeks ago, Hollis says.
Imports from China causing delays for manufacturers
Fashion brands making garments overseas are facing a hard time as components like fixtures and trims need to be imported from China, rue brands. What’s more the uncertainty around lockdown made it difficult for brands to take any long-term decisions. Brands had to also deal with rising cotton prices in the country. As Steve Rowe, Outgoing CEO, Marks & Spencer notes, organic cotton prices have risen almost 40 per cent. Given this situation, Turkey has emerged a more lucrative destination for garment manufacturers with falling production costs triggered by a decline in the value of Turkish lira.
Vietnam gains with brands moving away from China
Manufacturers across UK are looking for local suppliers to reduce their dependence on China. As per a report ‘Make UK, Operating Without Borders: Building Global Resilient Supply Chains’, published in May, around 42 per cent UK manufacturers have increased sourcing from local suppliers in the last two years. The country that has benefitted the most from diversion away from China is Vietnam which bagged many new orders in the last few months. However, Vietnam’s garment factories also import raw materials from China, and have faced shortages in the last few weeks. However, suppliers have been unable to completely severe ties with China as it is a dominant global supplier of many fashion products like silk.
China’s tough times to continue
China’s fashion industry continues to reel under lockdown’s effects despite Shanghai unlocking few key industries. Kasper Rorsted, CEO, Adidas says, his brand will return to growth only during the second quarter as the challenging market environment in China is expected to continue for some time. Inflationary pressures across the world would also force global suppliers to China suffer for a longer time, says Santoshan Sangha, Managing Director of Sweats & Tees. The uncertainty will continue to affect fashion suppliers and retailers sourcing clothing and footwear from China. Unable to shift operations out of the country, they are likely to face rising raw material and production costs and delivery delays over coming months.
Launched by the National Institute of Fashion Technology (NIFT), the national sizing survey will develop India’s first country-specific size chart to offer Indians better fitting clothes. Targeting various demographics like region, gender, locality and age, the chart will be based on the data collected from Indians aged between 15-65+years of age.
The government approved project is supported by On Ground Execution partner Design Smith. It is also being supported by the CMAI. They will measure over 25,000 people in six different cities including New Delhi (North), Mumbai (West), Chennai (South), Hyderabad (Centre), Kolkata (East) and Shillong (North-East). Non-contact human safe 3D body scanning technology will be used for measurements.
Making Indians aware of their body sizes
Indiasize will make Indians aware of their perfect fits and sizes as per their body types. It will provide branded clothes with perfect fittings. As per Noopur Anand, PI, INDIAsize project, the project will help retailers and manufacturer produce customized merchandize for Indian body types. So far the project has collected over 3/4 of target sample framework of various demographics of age, region, sex, income and community. It will compile and categorize this data shortly following which it will be analyzed and prepared into a report. After completion in the Southern region, the project has been launched in other cities like New Delhi, Mumbai & Chennai. It aims to measure approximately 2,400 people of various age groups in Hyderabad, of which it has already measured 2,330 so far.
Minimizing inventory waste and expenses
Shantmanu, Director General, NIFT informs, INDIAsize is progressing well. It has completed the scanning process in North, West, South region and is currently being done in Central Region. The project team has succeeded in collecting 75 per cent data despite challenges. To be completed by this year-end, the project will provide the Indian apparel Industry with the much awaited standardized body size charts.
Gaurang Shah, Textiles and Fashion Designer, adds, the INDIASize project will help designers and manufacturers minimize inventory waste and expenses on returned goods and improving sales. In turn, this will help reduce final prices paid by the consumers.
Nitin Spinners plans to invest Rs 955 crore to expand its capacity. As per a Textile Magazine report, the capacity expansion will be funded by Rs 300 crore of internal accruals and Rs 655 crore of debt
Nitin Spinners is India’s leading manufacturer of cotton yarn and blended yarn with knitted and woven finished fabric. The company’s leadership in cotton and blended yarn along with fabric manufacturing is driven by delivering international quality standard products with continuous investment in latest technologies. Elaborating, Managing Director Dinesh Nolkha says, “the company has achieved the highest ever revenue of Rs 2,692 crore, growth of 66 per cent over the previous year along with highest-ever profitability. It has doubled exports during the current year as compared to the previous year.”
At present, Nitin Spinners operates at nearly optimum capacity and strategically enhancing capacity in all these segments, including spinning, knitting and woven fabric to meet the increasing market demand. The company is also increasing our blended yarn production capacity substantially and investing Rs 955 crore for capacity expansion, which will be funded by Rs 300 crore of internal accruals and Rs 655 crore of debt. It aims to capture the benefit of growing market opportunity in international as well as domestic sectors and strengthen the company’s position by widening our product portfolio as well
A strong response from textile machinery manufacturers has motivated ITMA Services to unveil the sector plan for the exhibition.
As per a Textile Network report, the ITMA sector plan spans 12 halls on the ground levels of the Fiera Milano Rho venue. It features all 20 chapters of the Index of Products, ranging from spinning to finishing, software, logistics, and fibres, yarns and fabrics. The two biggest sectors, finishing and spinning, anchor both ends of the exhibition.
To-date, ITMA 2023 has attracted 1,444 applicants from 42 countries who have booked over 114,230 sqm of net space. The new Start-Up Valley has also garnered keen interest. The closing date for application for start-ups is 30 June.
ITMA 2023 will be held at Fiera Milano Rho, Milan, from June 08 to 14 June 2023.
Driven by solid performance from all segments during the quarter, as well as for the whole year, KPR Mill achieved an all-time high turnover and profit after tax during the year.
In FY22, the company established a new garment facility with a capacity to produce 42 million knitted garments per annum. The company has established an eco-friendly processing facility and sophisticated high-resolution printing facility. KPR Mill forayed into the retail segment with its brand ‘FASO’ – 100 per cent organic cotton men’s innerwear, sportswear and athleisure wear. The company has established a subsidiary in Singapore to support its export market expansion.
KPR Mill currently has annual production capacity of 100,000 MT of cotton yarn, 4,000 MT of viscose yarn, 40,000 MT of fabric, 157 million garments, 25,000 MT of fabric processing and 7,500 MT of fabric printing.
Keeping pace with the market demand KPR Mill has upgraded its entire spinning capacity to value-added yarn such as compact, melange, colourmelange, PC, slub, grindle and vortex, contributing to 37 per cent of the company’s total revenue. Of the total yarn manufactured, 29 per cent is exclusively consumed to manufacture value-added products. The company has large capacity for knitted fabric manufacturing, contributing to nearly 6 per cent of annual sales revenues. Around 61 per cent of the fabric is consumed to manufacture value-added products. Its garment manufacturing facility is one of the largest in India and contributes nearly 40 per cent of the total revenues, exporting to over 60 countries, including Europe, Australia and the US.
The company is one of the largest vertically integrated textile players with a strong presence across the entire value chain from ‘fibre to fashion’. It has made strategic investments in wind power projects and co-generation plant for captive consumption. KPR Mill boasts of marquee clients with more than 1,200 regular domestic clients for yarn and fabric and exports to nearly 60 countries for garments. With 115 million knitted garments’ capacity, KPR Mill has become one of the largest apparel manufacturers in India.
Fact.MR predicts the global sales of textiles will surpass $1,440 billion by registering a CAGR of 3.77 per cent in the forecast period 2022-2032. Penetration of e-commerce websites is playing a crucial role in the increasing demand for textiles. Moreover, demand for natural fibers owing to the rising environmental concerns is positively influencing the demand for textiles.
Historically, from 2015 to 2021, the global textile sales flourished at a CAGR of 3 per cent , being valued at $990 billion by the end of the aforementioned period. The onset of the COVID-19 pandemic affected the sales and demand of various industries. Due to the restriction on movements, the purchasing of consumer goods witnessed a dip. This, in turn, affected the demand for textiles. As the world is gaining normalcy, the demand for textiles is expected to upsurge in the assessment period.
Furthermore, demand from end user sectors such as medical and households is creating lucrative opportunities for textile industries. In addition, rapid urbanization and increasing population across various countries in the globe is propelling the demand for textiles.
By application, fashion and clothing is expected to gain more than 70 per cent market share for textile market. Natural fibers are expected to hold more than 45 per cent market share for textile market.Textile industry expected to possess nearly 30 per cent market share throughout North America.Textile industry expected to possess nearly 50 per cent market share throughout Asia Pacific. S, Canada, India, Bangladesh and Vietnam are the top five countries driving demand for textile.
Cotton Council International (CCI) has introduced the cotton fiber from the United States to the Muslim fashion industry players in Indonesia.
As per an Indo Textiles report, made of high quality, the cotton is comfortable and durable. It is also sustainable and made with transparency.
Dr Andy Do, Representative- Indonesia, CCI, says, the council ‘s commitment and consistency in providing added value to the textile industry globally, including in Indonesia, has always been realized through various initiatives.
The council has introduced three solutions; Cotton USA Licensing Program, Cotton USA Solutions, Cotton Trust Protocol as three effective solutions to help growth textile business in Indonesia
The Cotton USA Solutions Program offers free expert technical assistance to Indonesian spinning mills that are Cotton USA licensees and/or U.S. members. Cotton Trust Protocol.
Meanwhile, the US Cotton Trust Protocol benefits Indonesian textile manufacturers by enabling them to verify, measure and prove that the US cotton they buy is a sustainable product that is free from environmental and social risks.
Top producer of PV dyed yarn and seamless apparel, Sangam India (SIL), reported 51 per cent Y-o-Y growth in revenues to Rs 746 crore in Q4FY’22 ending March 31, 2022. As per an Equity Bulls report, net profit for the quarter rose 45 per cent Y-o-Y; sales increased to Rs 2,438 crore for the full year. The company has also been rated ‘A’ with Stable outlook for the current year by India Rating for long term debt and Al for short term lending based on FY21 February 3, 2021. EBITDA grew 36 per cent Y-o-Y during the Q4 to Rs 108 crore from Rs 78.9crore from the corresponding quarter previous year.
Established in 1984, Sangam India is one of the foremost producers of PV dyed yarn, cotton and OE yarn and ready to stitch fabrics. The NSE & BSE listed company produces 35 million meters of PV fabric and 48 million meters of denim fabric annually. This magnitude of production is possible with a highly organized production base equipped with more than 236,000 spindles and 2300 rotors. The Group has also introduced a seamless garment manufacturing facility with 52 seamless knitting machines that have the capacity to produce 5.4 million pieces per annum.
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