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APPAREL VIEWS / SEPTEMBER 2017 1 2 APPAREL VIEWS / SEPTEMBER 2017 SEPTEMBER 2017, VOL.- XVI / ISSUENO. 09 Editor & Publisher ARVIND KUMAR f r o m t h e e d i t o r . . . Associate Editor B.P. MISHRA Asst. Editor T he apparel export industry has asked the government to clear the confusion SWATI SHARMA prevailing on the issue of minimum wages under code of wages for the garment Editorial Adviser RAJESH CHHABARA industry. This has impacted the booking of export orders, and to restore the Sub Editor - Creative confidence of foreign buyers it is important that a suitable clarification is issued by JOHN EDWARDS the government. In the present stressful and challenging times, any additional Art Director SANJAY BHANDARI burden on account of doubling the minimum wages from the present about Sr. Correspondent `9,000/- per month to `18,000/- will make garment manufacturing unviable and ASHWANI KUMAR unsustainable in future. Correspondent DEEPTI Further, AEPC has asked the Ministry of Finance for the refund of IGST paid on Creative - Head import of machinery used by the apparel exporters. After the implementation of SREEKUMAR. M Sr. Layout Artist GST from 1st July 2017, apparel exporters are required to pay IGST up to 18 per cent JATIN JAIN on assessable value plus BCD while clearing shipments of capital goods under EPCG. Sr. Designer This incidence of a very high IGST without any corresponding relaxation for export RAJEEV KUMAR obligation has rendered the EPCG scheme unattractive. Production Manager MUKESH POKHRIYAL The only way for apparel exporters to claim IGST refund is through input tax credit e-Magazine SUMER SINGH but apparel exporters who import capital goods normally export 100 per cent of Business Promotion their products and doesn’t sell in the domestic market. Hence, issue of utilisation of BOBBY BAKSHI (DELHI) input tax credit doesn’t arise for these exporters. On the contrary, domestic players MEENAKSHI SINGH (DELHI) RAHUL SINGH YADAV (DELHI) who are importing capital goods are better placed as they have various opportunities N. SABARI SELVAM (TIRUPUR) PAVITHRA R. (TIRUPUR) to utilise input tax credit. Therefore, industry is demanding the Ministry to resolve the Circulation matter by taking up the matter with GST council to allow refund of IGST to exporters. ARCHANA (DELHI) V. MURUGESHWARI (TIRUPUR) This will not only adversely affect the exports but will also lead to a fall in the Accounts Head employment generation in the sector. The garment exports during the month of ANJU CHAUHAN TONDAK July 2017 have already registered a negative growth of 11.86 per cent in dollar terms Head Office 138/2/9, First Floor, Kishan Garh, as against July 2016, and the growth trajectory of 31.72 per cent achieved during the Vasant Kunj, New Delhi-110070, INDIA month of April 2017 has now been limited to 5.94 per cent in the period April-July, Tel.: 093107 66051, 093508 64036 [email protected], [email protected] 2017, with garment exports touching only $6183.35 mn. Hence, it is very important [email protected] that govt. looks at this urgently. Regd. Office C-46, DGS Housing Society, Plot No. 6, Sector-22, Dwarka, New Delhi-110075 Regional Offices Tirupur No. 23, Ground Floor, Indra Nagar, Avinashi Road, Tirupur - 641 603 Tel.: 0421-4325579, 95439 55888, 88700 06778 Arvind Kumar, Editor & Publisher [email protected] Kolkata Tapan Kumar - 99581 99872 Bangalore B.P. Mishra - 93414 44727, 080-2343 4446 Overseas Office Apparel Views Bangladesh Limited Section-1, Road-1, House-21, Priyanka Housing, Mirpur-1, Dhaka 1216, bangladesh, Bangladesh, Tel.: +88.02.900.9419 / 01799.751.096 / +01713.331.228 / E-mail: [email protected] / [email protected] www.apparelviews.com Owner, Publisher, Printer & Editor - Arvind Kumar, printed and processed by him at Sterling Publisher Pvt. Ltd., A-59, Okhla Industrial Area, Phase - II, New Delhi - 110 020, published from C - 46, DGS Housing Society, Plot No. 6, Sector - 22, Dwarka, New Delhi - 110 075. Reproduction of any of the content from this issue is prohibited without explicit written permission of the publisher. APPAREL VIEWS / SEPTEMBER 2017 3 Contents 52 66 82 Globe trotter 4 Domestic update 16 With textile facing saturation Option is diversification into MMFs 30 SGS holistic solution for managing Zero discharge for textile and footwear industry 38 5 factors that affect fabric consumption 40 Junior’s Fashion Week Autumn Winter 2017 42 Jack organises Gratitude Ceremony 2017 44 Sustainable fashion from fabric scraps in garment industries 48 Studio Next unveils It’s Indigenous Manual Spreader Prototype 50 Silicone inks for superior performance printing 52 Lakme Fashion Week Winter/Festive 2017 54 54 Zoje Sewing Machine Having aggressive plans for increasing its share in India 66 Solunaris GmbH - Innovative leader with vast experience in digital printing inks 70 Speciality Weavecoats LLP Plans to double their weaving capacity 74 Intertextile Shanghai 76 Maya Embroidery Machinery Targets to double its turnover by 2018 78 GTE Ahmedabad 2017 Biggest ever garment technology show in region 82 Forthcoming trade events 94 4 APPAREL VIEWS / SEPTEMBER 2017 APPAREL VIEWS / SEPTEMBER 2017 5 Ethiopian industrial parks attract foreign textile firms T hree industrial parks built by China in Ethiopia’s Hawassa, Mekelle and Kombolcha have started drawing foreign export firms to the east African nation’s textile and apparel sector. The country plans to generate one- fourth of $400-mn foreign exchange earnings target for the current fiscal from its flagship industrial park in Hawassa alone. The parks are part of Ethiopia’s efforts to become Africa’s manufacturing powerhouse. The country plans to raise its current $150 mn revenue from textile and apparel exports to more than $1 bn, according to a report. The Hawassa park has started bringing in revenues and Hong Kong-based TAL Apparel is among the foreign companies that have started production in its premises. About $1.5 mn is being earned every month at the Hawassa park, according to a recent report by the Ethiopian Textile Industry Development Iran's garment industry worth $15 bn Institute. Seven foreign companies, including some from Bangladesh, have secured space to commence operations at the Mekelle industrial park. I ran’s fashion and garment US textile and apparel firm Trybus has signed an agreement with the Ethiopian industry is worth 500 trrials (over Investment Commission to start a factory inside the Kombolcha Industrial $15 bn) though data from the Park built by the China Civil Engineering Corporation. Ethiopia, with nearly 175 government’s statistics centre textile units, aims to generate $30 bn in foreign exchange earnings from the shows that to be 350 trrials, the textiles and clothing sector by 2030 and has allotted more than $1 bn for the Country’s Secretary of fashion and construction of industrial parks in the second five-year growth and clothing regulation workgroup transformation plan (GTP-II) period, effective from 2015 to 2020. It plans to Hamid Qobadi Dana recently told the have 150 companies in the sector by 2020 fashion-focused second edition of the Startup Weekend conference in Tehran. Dana also highlighted the need to have a national standard system of garment sizes. The conference, held in mid-August Clothes out of beer raising $5 mn on the development of new talent in the fashion and retail industry, centredaround ‘Entrepreneurship in Fashion and Technology,’ according to a report. A Perth-based textiles company has A new apparel industrial town may be set-up in Fashafouyeh in Tehran Province’s announced plans to list on the Rey County to limit imports, boost domestic production and to make the price of Australian stock market, which is not Iranian garments more competitive. AT present, 9,818 industrial units are active in necessarily newsworthy in itself, except for Iran’s textile and apparel sector, comprising 11 per cent of all industrial entities the fact that it makes clothes derived from beer. According to a report, Nanollose is planning to raise $5 mn from a public listing Armenia keen to cooperate with to assist in commercial development. Vietnamese textile firms Data released by the ABS earlier this year shows Aussies still enjoy beer for its more A common usage as a refreshing beverage, rmenia has expressed its desire to cooperate with but advances in technology mean it can major Vietnamese textile firms to revive the local now be used for clothes as well. Nanollose garment industry and boost exports. This was uses its technology to extract cellulose, conveyed to a delegation from the Vietnam National which is one of the main ingredients in Textile and Garment Group (Vinatex) that visited textile production. Armenia in August to seek partners and explore avenues to develop production projects in Vietnam. While cellulose is usually derived from cotton and linen, Nanollose instead converts biomass from the waste generated by the production of beer, wine and Armenia also promised to create favourable liquid foods. The company emerged two years ago when it debuted a dress made conditions for foreign investors and provide special of material leftover from beer fermentation at a fashion expo in Milan. mechanisms for Vietnamese investors through cooperation policies, cooperation agreements, and granting of work visas, quoting Vinatex General That followed an experiment with a dress made from fermented wine extract, Director Le Tien Truong. which may have raised concerns about the drinking habits of the wearer — it still smelt like wine. Nanollose lodged its prospectus with ASIC on August 21, Truong said Vinatex will consider production and business cooperation with big and is inviting investors to subscribe for 25,000,000 shares at 20 cents. The Armenian companies that already have distribution networks in Russia and the company is aiming to raise $5 mn from a fully-subscribed float, managed by European Union. Vietnam is the first country to sign a free trade agreement with Mac Equity. the Eurasian Economic Union (EAEU), which includes Armenia. The prospectus states that the offer will run until 11 October, with the issue of Vinatex representatives met Armenian Deputy Foreign Minister, the Minister shares scheduled for 18 October. No shares will be issued unless a minimum of economic development and investment, and some major businesses in the rising of $5 mn has been achieved. As part of the share issue, investors will be country’s capital Yerevan. Armenia has 94 businesses in the textile and required to make a minimum investment of $2,000 (10,000 shares), with additional garments sector and some of its companies have experience working with big investments to be made in $200 increments fashion brands of Italy and Germany 6 APPAREL VIEWS / SEPTEMBER 2017 Indonesian upstream textile industry US want UN sanctions on North urge for tax exemption Korean oil, textile exports T U he Indonesian upstream textile industry has urged the Fiscal Policy Office in Indonesia, S ambassador to the Badan Kebijakan Fiskal, or BKF to exempt local raw materials supplied by local United Nations Nikki manufacturers from VAT. Currently the Indonesian Government only provides tax exemption Haley has said she wants for imported raw materials to those companies that obtained the so-called "Ease of the 15-member UN Import Facility for Export Purposes" (in Indonesian: Fasilitas KemudahanImpor Tujuan Security Council (UNSC) Ekspor, or KITE) on the strict condition that these companies only use these relatively to vote on September 11 cheap imported raw materials for output that is shipped abroad. on a draft resolution to impose new sanctions on However, domestic textile North Korea that includes an oil embargo and a ban on the country’s manufacturers supplying raw textile exports and the hiring of North Korean labourers abroad. The materials to KITE facility owners country recently tested a nuclear bomb. are subject to a 10 per cent value added tax (VAT), hence seeing The United States wants the UNSC to impose the embargo and subject weaker competitiveness. For North Korean President Kim Jong Un to an asset freeze and travel ban, KITE facility owners this situation according to a report. However, Russia insists the North Korean nuclear makes it attractive to opt for crisis is impossible to solve with sanctions and pressure alone. imported raw materials instead Meanwhile, US Treasury Secretary Steven Mnuchin has said that if of buying from localq suppliers. the UNSC did not act, he has an executive order prepared to send to Scrapping the 10 per cent VAT is expected to boost demand for local raw materials. President Donald Trump that would ‘authorize’ him to stop conducting According to the Indonesian Synthetic Fibre Producers Association (APSyFI) data show trade and put sanctions on any entity that maintains trade ties with that the volume of garment exports in 2016 reached 550,000 tonnes, while imports of North Korea. cloth stood at 724,000 tonne in the same year. Meanwhile, it is estimated that domestic It is estimated that between 60,000 and 100,000 North Koreans consumption of local raw materials in the textile industry could replace 100,000 tonne of works abroad. Textiles were North Korea’s second-biggest export imports, hence saving up to $500 mn in foreign exchange, boost activity at local factories after coal and other minerals in 2016, worth around $752 mn, and generate more employment. according to the Korea Trade-Investment Promotion Agency Redma Gita Wirawasta, Secretary General of the Indonesian Synthetic Fibre Producers (KOTRA). Nearly 80 per cent of the textile exports went to China. Association (APSyFI), said that the proposal has been discussed during several recent The draft resolution reportedly will allow states to intercept and meetings with the BKF. The APSyFI would be highly supportive of this move and it would in inspect on the high seas vessels blacklisted by the UNSC. Around fact encourage the development of an import-substitution industry two dozen vessels are listed at present APPAREL VIEWS / SEPTEMBER 2017 7 Honduras textiles and Pakistan textile industries need to focus apparel seeks investment on value addition P akistan textile industry has been advised to focus on value addition to compete in the international market as lack of value addition is one of the major reasons behind the decline in exports, said Commerce Secretary Younis Dagha recently while addressing an event hosted by Pakistan Hosiery Manufacturers and Exporters Association. According to Dagha, cost of doing business is higher in Pakistan compared to neighbouring countries, but it is not the only hurdle in exports as they have not played their role in value addition… industrial H production remains lower. Commerce onduras has launched an economic transformation unit Secretary said that Indian and Bangladeshi called Honduras 2020 to help attract and facilitate exporters invest in their industries, while in investment in the textiles and apparel sector in the country. Pakistan foreign revenue earned from textile Honduras 2020, which is jointly funded and directed by the public exports went back to stocks and real estate and private sector, extends an invitation to potential investors sector. Investors should not divert textile to explore the textiles and apparel industry within a pro-business money to real estate and other sectors. environment to drive strategic long-term growth. Honduras 2020 offers fiscal incentives to investors, such as no federal or Dagha further added that work on combined effluent treatment plant will soon start with the municipal taxes, government subsidies for salaries for new project cost to be borne half each by provincial and federal governments. Provincial government employee training and access to capital with financial institutions has already sanctioned the budget, while the issue is pending with the planning commission at active in the sector. the federal level, which will soon be resolved. Honduras offers important competitive advantages for Zubair Motiwala, Ex-President of Karachi Chamber of Commerce and Industry said yarn exports investment in the textiles and apparel sector. Honduras is the fetch $1.26 bn, but after value-addition this amount can go up to $7.5 bn a year. Pakistan Central number one worldwide cotton shirt and number two sweater Cotton Committee has been handed over to private sector, but there has been no improvement volume exporter to USA market. According to the Honduran in cotton production since then. Manufacturers Association, the industry has an estimated Jawed Bilwani, Chairman of Pakistan Apparel Forum said that Pakistan’s textile exports are investment value of $7.8 bn designated to clothing and lower than India, Bangladesh and Vietnam, while costs of production as well as minimum manufacturing fabric. wages are comparatively higher in the country. They receive export orders when other suppliers Its strategic geographical location represents a great are not available in the international market. They get only spillover orders. Exports would competitive advantage, as it offers the largest and safest port increase when a level-playing field is provided to the industries. The country is facing a widening in Central America, certified under the Safe Container Initiative. trade deficit of more than $32 bn and it would not prosper if exports are not increased WRAP, Worldwide Responsible Accredited Production, which is an independent, non-profit organisation dedicated to promoting PRGMEA urges revision of textile policy labour, health, safety, environment and customs law compliances, ranks Honduras in second place for social P akistan Readymade Garments Manufacturers and Exporters Association (PRGMEA) Central compliance in Latin America and first place in Central America. Chairman Ijaz Khokhar said the formulation of sector wise policies is the only remedial Honduras benefits from a stable legal framework, which is based solution to avoid decline and stabilise textile exports. on the Free Zone Law, and which guarantees the principle of free Talking to APP recently, PRGMEA Chairman said, “We are pressing the government to review enterprise and production incentives. “Textiles and apparel its textile policy to enable the textile sector to attain the targets,” adding that government industry investment represents a great socioeconomic impact should take steps for the removal of hurdles hindering exports of textile sector. “We understand for both parties,” authors of the initiative explain. “The country that formulation of sector wise policies is the only remedial solution to avoid decline and to where the investment takes place is provided with employment stabilise the exports,” he reiterated. opportunities that reduce unemployment percentages and, on the other hand, investors are granted the benefit of improving Ijaz said that due to non-availability of their performance margins since their costs diminish due to latest fabric, locally the garment sector highly productive labour force.” currently has a limited product line for the export market, adding that foreign Through the Tripartite Comission (Government – Workers – buyers were demanding new garments AHM) and Bipartite Comission (AHM – Textile Labor Unions), on G3, G4 and technical fabric raw permanent dialogue mechanisms have been created with material which is not available nor textiles sector workers. PROCINCO, the Integral Competitiveness produced by Pakistani weavers. Training Program, offered by the AHM in alliance with INFOP, the Honduran Vocational Training Institute, offers a series of training He said more than 30 per cent cash courses for operators, technicians, managers and executives. flow was blocked since long in the More than 562,000 employees have been trained since 2001. shape of sales tax refund and custom rebates which was adversely damaging cash liquidity. “Our value added products are unable to The vision for the textiles and apparel sector established by fetch high value due to poor packaging and under the circumstances, there is need of setting up Honduras 2020 is to position the country as the textiles export a product and packaging centre for ensuring better packaging,” he added. leader in the Americas to USA and Europe reaching a total of $7.4 bn and creating an important number of new jobs. Focused He said that at present there are 125 exporters of martial art apparel in Sialkot and the city was on corporate social responsibility, AHM also promotes training earning up to $400 mn. He added that efforts were underway for bringing a big boost in the initiatives, housing access opportunities, safety and exports up to $1 bnby 2020.However, the PRGMEA Chairman said that Research and Development occupational health standards, and also a new pilot project of (R&D) was weak due to the high cost of utility and allied factors and under the circumstances, child care centres. This provides residential areas with security, the government should announce special R&D support fund for innovation of new product and up stability and comfort for the families of textiles workers gradation of workplaces 8 APPAREL VIEWS / SEPTEMBER 2017 APPAREL VIEWS / SEPTEMBER 2017 9 Former Gap boss developing sustainable plant-free fibre in 2014 by scientist Gary Cass. "Today, we use Germano says the company will first target the $500bn plants and trees for fibres to make clothes and global textile industry, given the increasing urgency textiles, with manufacturers having limited from brands, retailers and manufacturers to seek and alternative eco-friendly options available to them. cultivate alternative sustainable fibre resources. We don't have to cut down trees and plants to "Progressive brands and companies are starting to create our plant-free cellulose fibre, and it can be facilitate this new shift by involving themselves used in the same way as other fibres to make deeper in the supply chain and searching for feasible, clothing and textiles but with a dramatically sustainable long-term alternatives." reduced environmental footprint.” This urgency for cleaner alternatives recently saw A As the building block raw material for items such as Swedish retailer Hennes&Mauritz (H&M) release a ustralian technology company Nanollose, headed paper, clothing and hygiene products, cellulose is sustainability report in April, highlighting its up by former Gap Inc clothing boss Alfie Germano, obtained from plant sources like cotton, wood and commitment to use 100 per cent sustainably sourced is producing what it claims is the world's first plant- bamboo, with the supply chains and procurement materials by 2030. As part of that plan, the retailer's free fibre, offering a sustainable alternative to ecosystems of these industries raising ever-growing Indonesian arm has partnered with Danone, bottled commonly used fibres such as cotton for the textile environmental concerns."The current procurement water brand Aqua, and one of its most sustainable industry. The company is developing a technology that of fibres to make textiles and clothing is highly suppliers, to turn plastic waste into clothes. uses biomass from waste products such as beer, resource intensive," say Germano said. "I applaud wine and liquid food, to extract cellulose fibres – one Zara has also joined the movement with the launch of the cotton industry's efforts and improvements, of the main ingredients in fashion and textile its sustainable line 'Join Life' last year. "We want to however the challenges around cotton still remain production. The process, Nanollose says, requires very be part of this solution, and our vision is to create an as it requires large amounts of water, vast acres of little land, water or energy. A production cycle is just end-to-end supply chain with key partners who will land and uses a significant amount of insecticide."We 18 days, compared to the eight months seen in the grow our fibres," says Germano. "The goal is to then are the only company we know of looking to produce cotton industry. feed our sustainable alternative into the global plant-free cellulose fibres, and I truly believe that industries with little to no retrofitting to existing CEO Germano says the development marks an Nanollose success will be a success for the global machinery or processes" exciting time for the company, which was founded textile industry." Myanmar textile industry training in chemical management T he European Union-funded SMART Myanmar “They have provided us with expertise and knowledge project has launched a six-month advanced resources which PSES developed over more than 10 chemical-management training programme for years. With this programme, we aim to help Myanmar garment and textile factories. The training follows a dodge the environmental destruction which so many curriculum developed by the Promotion of Social and of the world’s other garment and textile industries Environmental Standards in the Industry (PSES) have faced.” SMART Myanmar is the largest not-for- project. PSES is a joint project of the Governments of profit technical-training initiative in Myanmar’s Bangladesh and Germany, implemented by Deutsche industrial sector. It has trained hundreds of managers Gesellschaftfür Internationale Zusammenarbeit (GIZ) and dozens of garment factories on various social GmbH, which works on behalf of the German Federal and environmental topics. The Chemical Ministry for Economic Co-operation and Development. Management and Detox programme is the newest addition to the project’s several on-site consultancy “GIZ has been immensely cooperative and practical,” and training modules said Jacob Clere, SMART Myanmar Team Leader. New African nations get AGOA trade benefits, others at risk A s the U.S. continues its wholesale review of all from the United States. Since AGOA came into effect, trade agreements and preference programmes- regional real GDP has more than doubled and robust including the African Growth and Opportunity Act-it economic growth has helped reduce poverty and raise seems to still be building up on the AGOA programme living standards across the continent.” that’s so far still set to run through 2025. Last month, The US took in a total of $1.04 bn worth of textiles and the United States Trade Representative said Togo is apparel from AGOA nations last year, just a 1.25 per now eligible to enjoy trade benefits under AGOA for cent increase over 2015, according to OTEXA. Nearly textile and apparel products. A statement in the According to a report in Rwanda, talks with the US 33 per cent of that came from Kenya, followed by Lesotho Federal Register said, “…Togo has adopted an have begun. “We are talking to our partners in the with 28 per cent and Mauritius accounting for 19 per effective visa system and related procedures to US. We value our trade and relations with the US and cent of US. AGOA imports. AGOA still remains largely prevent the unlawful transshipment of textile and we are doing all that is possible not to be out of cycle under-utilised, with just 16 countries importing textiles apparel articles and the use of counterfeit documents and of course we have been engaging on the issue,” and apparel to the US of the 26 that are eligible. in connection with the shipment of such articles…” Rwanda Development Board Chief Operating Officer, Emmanuel Hategeka, told. “We think there is a lot to Reiterating the previous sentiment that the US needs Separately, the US initiated a review in June of AGOA gain if we keep AGOA, not just in volume terms. to move from an aid-based relationship with Africa to eligibility for Tanzania, Uganda and Rwanda, which came Probably the volume of exports has not been a lot but one that’s trade based, Lighthizer said, “Bilateral trade about when the East African Community (EAC) decided the idea is to have an open market.” that benefit both US and Africa exporters and service to ban imports of secondhand clothing to improve its providers lies at the core of our Africa trade policy. I own industry. The US Secondary Materials and Recycled Trade leaders from the US and nations in Africa met encourage our AGOA partners to promote fair trade, Textiles Association (SMART)—which initiated the last month at the 16th Annual AGOA Forum to discuss foster an improved business environment, and create petition for review with the USTR—said the move to moves forward for trade. In a statement following the economic opportunity that lays the groundwork for curb incoming used clothing is a barrier to US trade, forum, US Trade Rep Robert Lighthizer said, “Africa is the next state in the US-Africa trade relationship” which goes against certain requirements under AGOA. better positioned than ever before to sell to and buy 10 APPAREL VIEWS / SEPTEMBER 2017

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GST from 1st July 2017, apparel exporters are required to pay IGST up to 18 per cent on assessable value plus BCD while clearing .. shape of sales tax refund and custom rebates which was adversely damaging feed our sustainable alternative into the global industries with little to no retrofitting t
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