31 January 2023, Mumbai

The domestic yarn and fabric producers, cotton, wool, synthetic fiber suppliers, dyers, printers, finishers, machinery, and textile chemical industries, and our American garment industry clients make up the domestic textile industry.

Every area of the United States has a textile industry, suppliers, and consumers, which comprise a significant part of the nation's economy. For many years, the sector has been a stepping stone for people out of poverty and into well-paying occupations in rural areas. Over 8,000 goods are annually provided to our men and women in uniform by the industry, which also significantly contributes to our nation's defense.

The sector is a substantial driver of high-tech innovation, to sum up. Today, textile goods play a significant role in everything from airplane hulls and sophisticated body armor to heart valves and stents.

According to industry sources, India's $200 billion textile and garment sector is in crisis as customers in the United States, Europe, and other major countries have reduced apparel/clothing purchases in response to a spike in inflation following the conflict in Ukraine.

The textile industry is a striking exception to the otherwise healthy and thriving economy, and orders indicate that the slump will go far into 2023, increasing the possibility of layoffs in a sector that employs more than 45 million people.

Global retail sales of clothes have been negatively impacted by high inflation and low consumer confidence after 18 months of solid growth through mid-2022. The outlook for 2023 is bleak, according to a McKinsey analysis released last month.

The US market and its growth

Despite solid development elsewhere, India's manufacturing sector, which accounts for 16% of GDP, has been hurt by rising raw material costs and poor demand. While the entire economy gained 6.3% in the first half of the current April-March fiscal year, aided by agriculture and services, manufacturing did not show any improvement.

As businesses struggle to pass on higher input prices, textile producers have also been impacted, along with footwear, furniture, electronics, and electrical producers. Consumer spending on these items has decreased as they spend more on food and gasoline.

Manufacturers in the textile sector claim that increasing local cotton prices and other costs have reduced profit margins. At the same time, domestic demand is still poor and international orders for next summer are down by around one-third.

The size of the textile and apparel manufacturing sector in the U.S. has significantly shrunk over the past several decades due to several causes, including automation, import competition, and evolving comparative advantages for related products. However, American textile manufacturing is gradually resuming. The American government claims that one job in the textile industry supports three other ones.

In the United States, 534,000 people were employed in the textile supply chain in 2021, from textile fibers to garments and other stitched items. According to government figures, American exports of textiles and apparel were worth USD 65.2 billion in 2021.

The United States is the world's second-largest exporter of articles linked to textiles. The combined value of textile, apparel, and fiber exports in 2021 was USD 28.4 billion.

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28 January 2023, Mumbai

China currently leads the world in textile and apparel production, consumption, and commerce. However, the manufacturing sector has relocated due to the unique business environment's unsteady trade restrictions, growing labor costs, more operational monitoring, rigorous environmental checks, and ongoing trade disputes with the United States.

China is steadily raising the minimum wage and promoting greater automation to increase domestic demand. While China's share of global textile and clothing exports decreased to 37.1% and 34.9%, respectively, in 2017, the country nevertheless exported $110 billion and $158.4 billion. China, the European Union (EU), and India were the top three textile exporters that year, followed by the United States.

These three countries accounted for 70% of all textile exports worldwide. China and India experienced growth rates of 5% and 5.8%, respectively. The worldwide supply chain for the textile and garment sector is primarily focused in Asia and Europe, and the United States is a small region in this chain. Because it would be exceedingly expensive, impractical, and scalable, US corporations need help to locate suppliers or build factories in the US.

The export structure

India is one of the world's top nations that contributes considerably to the global textile industry, along with China. For the fiscal year 2017–18, India's textile exports were $36.6 billion, or 15% of all export revenue.

India is the second-biggest exporter of cotton after China and the world's most extensive fiber producer. The first country where Chinese apparel manufacturers established joint ventures was Bangladesh since the latter is a popular location to relocate facilities due to the rising cost of production in China.

Vietnamese and Cambodian textile industries have also attracted the attention of Chinese textile makers. Bangladesh is appealing because it has more developed management and lower labor costs than China, which has a more skilled labor force but higher production prices.

Additionally appealing are its trade agreements with the US and the European Union (EU). Although the country has yet to permit foreign investment in basic apparel manufacturing, manufacturers are nonetheless interested in investing in fabrics, garments, printing, and dyeing facilities there.

Its garment and textile (T&C) exports have consistently increased. Robert Lok, managing director of the Chinese company Merit Tat International Ltd, who was a member of a Hong Kong business delegation to Bangladesh in early June, claims that the young and vivacious Bangla labor force has world-class skills and that companies want to plan joint ventures with Bangladeshi partners because the ongoing trade war may impact Chinese garment businesses.

Francis Man Piu Cheng, a Chinese clothing manufacturer based in Hong Kong, claimed that Bangladesh had more highly skilled laborers and more experienced management compared to Cambodia.

Other potential textile manufacturing locations

Uzbekistan is a potential textile and apparel manufacturing location for Chinese firms. The $100 million Kashkadarya textile project is currently in its second and third stages and is being carried out by Chinese textile and mechanical engineering behemoth Jinsheng Group.

This group comprises 77 businesses and organizations located in Germany, Switzerland, China, and other nations.

Its production capacity will be roughly 15,000 tonnes of mixed yarn and 10 million square meters of fabric when implemented in the first quarter of 2020. African textile projects are another area that Chinese textile manufacturers are considering funding. Cheaper labor and other plant-related expenses, lower tariffs offered by the US and the EU, and government-sponsored promotional activities are the causes.

In partnership with the China Chamber of Commerce for Import and Export of Textile and Apparel (CCCT), the International Trade Centre (ITC) organized an investment road show on textiles and apparel in Shanghai and Wuxi during the second week of March. The UK Department for International Development funded the Partnership for Investment and Growth in Africa (PIGA) program, which organized it (DFID).

A hundred or more Chinese companies took part in the roadshow. A memorandum of understanding (MoU) was signed by the Ethiopian Investment Commission (EIC) and Zhejiang Mengnah Socks & Hosiery Co Ltd to carry out a $30 million investment project.

Other textile and apparel producers are negotiating the purchase of land with Ethiopia. The EIC, the CCCT, and the Shanghai Chamber of Commerce for Import & Export signed an MoU, and more agreements are being negotiated. Companies have contributed close to $200 million to projects related to the textile sector.

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 24 January 2023, Mumbai

As per one FMI, Research Report the existing trade data point as we step back,” The digital substation market size was estimated at US$ 6.5 Bn earlier in the year 2021 and is on its way to going up to around US$ 14.11 Bn by the period 2032, thus registering a growth trajectory of 7.3% CAGR in the forecasted period of the year2022 to 2032.

The report further sheds light on the forecast period in question i.e. (2022-2032), the transmission substations segment is well projected to hold the lion's chunk of the so-called digital substations market and, interestingly the projected market for North America, should, by all means, get anywhere in excess of USD 2.5 billion or so likely by the period 2028”.

WHAT KEEPS IT TICKING

Living in the digital era does not surprise many that The global digital substation market is leapfrogging presently', and there is complete unanimity in expecting secular growth in this given category over the coming years. The sustained quest of all prominent players on the back of innovations presenting every now & then novel products, and new features with augmented & amplified capabilities to eke out.

The incremental need & urgency of realization has only accelerated the pace of adoption and spurred demand tailwind for the caveat of energy transfer and switching over to renewable resources/use of non-renewable energy resources shifting the demand for power generation to renewable energy sources in developed nations in the journey to achieving sustainable production/development; comes as a fundamental tailwind triggering digital substation market growth & sustenance all the more.

How the story is playing out

The harmonic blend of renewable energy/resources and delivering improved reliability, super-efficiency, and safety factor in the space of power distribution with digital substations is aptly been enabled by the very emergence of modernization/automation in the eco-system of power generation, distribution, and management so to say.

It is pretty imperative to introduce here the limiting factor of what impedes the progress & growth of let us say this adoption clearly is prohibitive one-time/initial investments & spend working as a stumbling block in the way to bringing the digital substation market concept Vs. traditional substations have been used hitherto.

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31 January 2023, Mumbai

The diversity and richness of India's textile potential have transcended national boundaries throughout history. India is proud of its long history in textiles, from fine, traditional handloom and handicrafts to the fabrics produced in capital-intensive factories.

Currently, India's textile and clothing (T&A) sector is characterized by radical innovation, moving markets, developing supply chains and distribution methods, and a gradual transition toward ethical and sustainable production.

Due to its ability to adapt, this industry—often called a change agent—alone can provide 70 employment for every INR 1 crore ($ 132,426) invested, as opposed to the 12 jobs produced on average in other industries. This research provides an in-depth analysis of India's textile and clothing industry and suggestions for maximizing its growth potential.

The growing stats in the industry

The textile and clothing industry has shown sustained expansion in recent years in terms of worldwide commerce. The global textile and apparel market was worth $823 billion in 2018 and has increased at a CAGR of 4% since 2005. With a 57% share of the overall textile and apparel trade, clothing was the most traded segment in the industry.

Since 2005, the exports in this category have also increased at a CAGR of 4%. Closely following garments in importance was fabric, which comprised 19% of the overall textile and apparel trade and saw a 3% CAGR in export growth since 2005.

It is anticipated that the worldwide trade in textiles and clothing will experience a relative change in the following years, increasing from its present value of $ 823 billion to $ 1 trillion in 2025, rising at a favorable rate of over 3% when compounded yearly.

The evolution of the garment and textile supply chain from industrial dynamics to logistical operations is outlined. To shorten lead times and improve productivity in product development, the chapter covered the causes of the bullwhip effect in the clothing supply chain and methods to mitigate it.

It also covered using key chains, virtual prototyping, and collaborative product development. Additionally covered in this chapter are the result and functions of vendor-controlled inventory, just-in-time management, and postponement in the garment supply chain.

It is discussed how the various supply chain structure affects lean clothing production. Examples of lean concepts in logistics, storage, distribution, and e-commerce operations are also described to broaden the use of poor in supply chain management.

How are the companies performing in and around the world

Numerous garment companies worldwide have changed their organizational structure from a vertically integrated composite set-up to a horizontally aligned one. The emphasis on increased organizational and process flexibility to meet variable market demand is one of the many factors that led to the move from a vertical to a horizontal structure.

Additionally, it is becoming increasingly problematic to underutilize the complete spectrum of manufacturing equipment, from spinning to processing machines held under one roof, due to the remarkable rise in productivity and cost of gear. Cost-cutting, which results from high debt levels brought on by more acquisitions, drives management to maintain the company lean and vertically aligned.

The division of previously vertically coordinated corporations into several independently operating garment firms, each with its operation, needs effective coordination between them to withstand rising competition.

Given the expanding intra-unit productivity rivalry, huge, vertically structured organizations—which are still around—must coordinate their entire supply, frequently at the expense of market priority.

This encourages appareL/garment companies to organize their numerous operations using the new supply chain management paradigm.

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22 January 2023, Mumbai

The global population faces significant health, economic, environmental, and social issues due to the COVID-19 virus' rapid proliferation. One of the most challenging issues that humanity has faced in contemporary times can be attributed to this pandemic.

The outbreak impacted the majority of the international supply networks in South and Southeast Asia. The second-highest number of coronavirus cases worldwide had been reported in India, creating both new potential and challenges for the textile and apparel/garment (T&C) sector.

The global economic downturn was evident, but its effects were most severe in emerging economies but post Russia @ war the developed world economy visibly has taken a deep hit.

The task is made more difficult because social and healthcare systems in developing nations need to be more vital to handle the enormous population. The nation's ongoing lockdowns had wholly halted the textile and garment industries.

But since then Indian textile industry has been the epitome of ''Resilience To Resurgence" all thanks to better handling of the pandemic by Indian authorities.

Setbacks after the pandemic

The sector has faced significant issues recently, including negative growth patterns, international trade imbalances, unemployment, income, poverty, manufacturing closures, retail closures, workforce displacement, and shortages.

In the context of the textile sector's socio-economic primacy for the Indian economy, indeed COVID-19 has rocked the boat as a bigger picture threatening to totally derail the socio-economic life of people globally jeopardizing the employment of millions of trade workers and injecting the sense of trepidation amongst the workforce and, compounded by elevated interest rates, hiked inflationary costing pressures hurting the economic growth revival of the country.

According to Sahoo and Ashwani, if the current scenario persists, production might drop from 5.5 to 20%, exports from 13.7 to 20.8%, imports from 17.3 to 25%, and MSME net value added from 2.1 to 5.7. The industry could not have predicted that it would experience such a protracted shutdown in the early stages of the pandemic. Consumer consumption has also been declining substantially for the first time in recent decades, which has a worsening effect.

The required lockdowns could significantly impact growth because the Indian company development strategy focuses on export-led growth. The value chain analysis method is used in this essay to examine each stage of the value chain and highlight both the advantages and disadvantages of the current situation.

Recent research has focused on the pandemic's effects on the sector. However, this study takes it further by digitizing the value chain and putting the model for future shocks into practice. The author has collated practical information from academia, research, and industry to provide managerial solutions to the stakeholders in the value chain.

Disrupted textile supply chains with the changing geopolitics

Textile supply chains have been greatly impacted by the shifting geopolitical landscape. The COVID-19 pandemic has exposed the vulnerability of global supply chains, particularly in the textile industry. With border closures and restrictions on movement, suppliers have struggled to meet demand, leading to delays and shortages in the supply of raw materials. In addition, the trade tensions between major economies have disrupted the flow of goods, causing uncertainty in the industry.

The US-China trade war has forced companies to consider alternative sourcing options, leading to a shift in production to countries like Bangladesh and Vietnam.

Furthermore, the increasing focus on sustainability and ethical production has added another layer of complexity to the already disrupted supply chains.

Brands are now under pressure to source materials from eco-friendly and fair trade suppliers, leading to a need for more transparency and traceability in the supply chain. Overall, the changing geopolitical landscape has had a significant impact on the textile industry and its supply chains.

Companies must now adapt and find new ways to ensure the continuity of their operations in a constantly evolving market.

The ministry’s responsibility

The country's textile manufacturing accomplishments are the textile ministry's responsibility. Eleven cities—Kolkata, Mumbai, Tirupur, Ludhiana, Indore, Bellary, Jaipur, Bangalore, Chennai, and Delhi—account for the majority (80%) of the nation's apparel industry.

The textile and apparel industry's fiber, yarn, fabric, and garment segments are healthy. A well-organized textile and apparel industry guarantees robust domestic retail. India's young, educated middle class is one of the largest markets in the world.

The retail sector is well-stocked, with domestic and international brands in all fashion divisions. The country is undergoing a digital revolution, which has led to an apparent increase in internet sales.

The COVID-19 issue impacted the whole Indian fashion and textile industry. The impact of a crisis can be understood by looking at both the supply-side aspects and the demand-side elements, according to Kanupriya (2021).

Unleashed Story

Due to canceled contracts and a lack of raw materials, manufacturing in Asia halted. The required lockdown forced thousands of textile and apparel manufacturers to close, severely disrupting supply and demand.

According to research by the apparel export development council, 83% of export orders had been fully or partially canceled. The purchasers canceled or ceased placing fresh orders, significantly impacting the apparel/clothes export industry. This resulted in an immediate increase in inventory and manufacturing overhead expenses.

Opportunity Knocks Indian Doorstep; With China Plus one, and remarks coming from Paytm founder articulating India is in a unique position and is one of its kind in the current global market and, echoing the same confidence quite recently Aditya Birla, chairman Kumar Manglam alluded that in the world of 'Winners & Loosers' India's rise "Beyond'+1" is credible; as India becomes a serious player in the global textile economy, factually being both a supplier hub and a significant consumer. 

Therefore, there is an absolute need to think today ‘out of the box’/lateral thinking for tackling this unparalleled crisis sort of never seen before.

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30 January 2023, Mumbai

The shirt-wear industry in India has been rapidly growing over the past few years and is expected to continue its upward trend. According to a market research report, the Indian shirt wear market was valued at INR 113.5 billion in 2020 and is expected to reach INR 205.5 billion by 2025, growing at a CAGR of 12.5% during the forecast period.

The increasing popularity of formal and casual shirts among the Indian population, particularly among the youth, is driving the growth of the shirt-wear industry in India.

Changing trade landscape

Trade Dynamics; In addition, the rise of e-commerce platforms and the increasing penetration of smartphone users in India have made it easier for customers to purchase shirts online, thereby boosting the growth of the shirt-wear industry.

Moreover, the growth of the organized retail sector and the entry of global brands in India are also contributing to the growth of the industry.

The men's shirt market has changed from restricted color and design options to different categories of formal and fashionable shirts in the past few years. Demand for stylish shirts is rising as consumer preferences for semi-formal and casual clothing change.

Challenges

Despite the rapid growth of the shirt-wear industry in India, there are still a few challenges that need to be addressed. The unorganized sector still dominates the industry, which affects the quality and pricing of shirts. The increasing competition from global brands and the need for innovative designs and patterns are also challenges that the industry needs to overcome.

Despite the challenges, the industry is well-positioned to capitalize on the growing demand for shirts in India and emerge as a major player in the global shirt-wear market.

Market size The domestic shirt market was forecast to be worth Rs 39,659 crore in 2017; by 2027, it was predicted to increase at a CAGR of 6% to reach Rs 69,361 crore.

Twelve percent of India's overall apparel market is made up of shirts. Men's shirts account for 94% of the global shirt market, with women's shirts accounting for the remaining 6% of sales and expanding twice as quickly as the men's segment.

The market for men's shirts in India is estimated to be worth 37,132 crores, and it is the largest category of men's clothing, accounting for 28% of the overall market for men's clothing. Formal and semi-formal shirts make up about 40% of the need for men's shirts.

In conclusion

With the constantly shifting fashion needs of both formal and semi-formal shirt customers, companies and retailers have much room to grow in the Indian shirt industry which is expected to continue its upward trend in the coming years.

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