23 January 2022, Mumbai:

Haryana, a renowned garment manufacturing state, has implemented a 75% job reservation policy in the private sector for residents earning less than Rs. 30,000 per month. This job quota has heightened the industry's concerns, which it describes as "unjustified."

Not just clothes makers, but also retailers and other companies are concerned about the Haryana government's decision. Garment Resources has also underlined how private job reservations for locals will harm the apparel business over a year ago when the matter was presented.

The largest centers of garment and textile-related items are Gurugram, Faridabad, Panipat, and Sonipat. Animesh Saxena, MD of Neetee Clothings in Gurugram and President of the Federation of Indian Micro and Small and Medium Enterprises (FISME), believes that this is harmful to MSMEs because the bulk of their staff is within the Rs. 30,000 pay category, which is subject to employment reservation. He also stated that, sadly, local candidates in many of the needed skill sets are not accessible in sufficient quantities. 

Filling vacancies and planning expansion would be a big difficulty for MSMEs. The statute will be in effect for ten years, and the State Government has reduced the residence (domicile) requirement from 15 to 5 years for a person to get a bona fide resident certificate in the state, allowing private enterprises more recruiting freedom.

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22 January 2022, Mumbai:

A declining population, as indicated by the fifth National Family Health Survey (NFHS) for 2019-21, is unlikely to have an impact on the baby care market in India.

While the NFHS recently detailed how India's total fertility rate has fallen below 2.1 for the first time (2.1 being the benchmark replacement rate), factors such as maternal health, fertility, nutrition, women's empowerment, and digital uptake also have a direct im- pact on the baby and mother care market.

Key segments of the baby care market- including apparel are said to be growing at 13-14% per annum.

Credits: TOI Dt 22-01-2022

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18 January 2022, Mumbai:

Deferment in GST rate hike on textiles from 5 per cent to 12 per cent hardly brings any relief to consumers as they still have dole out extra cash for branded clothes.

As Charath Narsimhan, CEO, Indian Terrain Fashion says, with rise in raw material prices like cotton, yarn, fabrics and packaging materials, the price of finished goods are also likely to increase by 8-15 per cent.

Already, many brands have started increasing the prices of their garments with others likely to increase by around March. Raw material prices have increased by around 15-20 per cent, leading to a rise in MRP of branded garments by around 10 per cent, adds Yuvraj Arora, Partner, Octave Apparels.

Numero Uno is also increasing prices by around 10 per cent while Madame is increasing by 12 per cent, starting with its summer collections. Prices of summer collections from most brands are likely to increase 15-20 per cent, predicts Clothing Manufacturers Association of India (CMAI).

To reduce the price hike, few brands may tweak their product quality, especially in the lower price range and limit price increase to 5 per cent, adds Rahul Mehta, Mentor, CMAI. Whatever is the scenario, apparels prices are likely to rise from January end, he adds.

KEY HIGHLIGHTS

• Deferment in GST rate hike hardly brings any relief to consumers 
• Charath Narsimhan, CEO, Indian Terrain says, rise in raw material prices is a concern
• Rahul Mehta, Mentor, CMAI. Whatever is the scenario, apparels prices are likely to rise
• Rise in MRP of branded garments likely by around 10% Yuvraj Arora, Octave Apparels

 Price rise to make up for pandemic losses

For some time, retailers have been absorbing the hike in raw material prices, high freight costs, devalued rupee, into their profit margins. They refrained from passing on the hike to consumers due to sluggish demand.

However, with sales revival and consumer demand, they plan to make up for their losses by increasing prices.

As Akhil Jain, Executive Director, Madame notes, brands hesitated to increase prices leading to a decline in selling prices. This along with steep discounting led to industry working on a thin margins His brand Madame used to have 65-70 per cent sale through earlier.

But now-a-days, it has only around 55 per cent sale through, he informs.

Ramesh Kapoor, CFO, Numero Uno says, the above factors compelled them to hike prices for all its apparel categories by around 10 per cent. To control rising prices, a few apparel makers have sought government intervention though others believed factors are mostly external.

Significant impact on volumes

Though the GST Council has deferred the proposed hike, it has referred the matter to a Group of Ministers on GST rate rationalization.

The Council believes, GST hike will impact prices of only those brands that sell merchandize below Rs 1,000. Prices of these garments are likely to increase 7-10 per cent, opines Mehta.

Arora adds, GST hike will affect brands whose merchandise is priced at or below Rs 1,049. Octave Apparels will be impacted as it sells round neck T-shirts for about Rs 799-899 and a polo T-shirts for about Rs 999. GST hike will push up prices by almost 30 per cent for these tees to Rs 1,299.

Even a 7 per cent hike in GST will compel the brand to increase prices drastically, Arora explains. The move will decrease the volumes of value brands as consumers may shift to other low-priced brands, he laments.

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23 January 2022, Mumbai:

The Indian textile sector is doing well and is on the right road, according to recent statistics from both the export and domestic markets.

Not just the giants, but even the micro-level players are expanding and preparing to develop. Hans Creations, a 6-year-old company located in Jaipur with its own dyeing, printing, and sewing operation, has tripled its hand printing capacity and expanded its product offering to include men's shirts and children's clothing.

Currently, the organization produces women's tunics for both export and local markets, with a daily printing capacity of roughly 1,500 pieces.

"Despite the fact that hand printing is around 20% to 30% more expensive than machine printing, we have clients in both local and international markets who demand hand prints, whether block or screen prints." As a result, we grew," said Nitin Koolwal, the company's Director.

He went on to say that, rather than using traditional brick tables for printing, the new tables are built of high-quality iron, and that the new unit ensures smooth worker performance and simple material transportation.

"We have numerous obstacles in the company, but we are optimistic that things will improve in the next two to three months." Nitin said, "Our sample of children's clothes and men's shirts is also doing well."

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20 January 2022, Mumbai:

Narendra Kumar Goenka, Founder, and Managing Director, Texport Industries has been named as the new chairman of the Apparel Export Promotion Council (AEPC). Being associated with AEPC for over two decades, Goenka was the vice-chairman of the apex body of Indian apparel exporters before taking charge as chairman, AEPC.

He has assured of all efforts to bring positive change in the sector, find new markets for Indian apparel and boost growth in exports.

Assuming charge of the Council at its Executive Committee meeting, Goenka said, the current positive export trend is likely to accelerate in the last quarter of the year.

This major turnaround will be possible due to highly efficient management by the government led by Prime Minister Narendra Modi and the entrepreneurial spirit of the Indian apparel exporters, he added.

KEY HIGHLIGHTS

• Narendra Kumar Goenka is Founder & MD of Texport Industries
• He is being associated with AEPC for over two decades
• Goenka was VC of the apex body of Indian apparel exporters before it
• He has assured of all efforts to bring positive change in the sector

Goenka appreciated the proactive approach, leadership and constant support extended to the apparel industry by Minister for Textiles, Industry and Commerce Piyush Goyal and Minister of Finance Nirmala Sitharaman.

 

He said AEPC looks forward to enhancing exports in both traditional and emerging export markets. He called for the fast-tracking of FTAs to give India a level playing field in global markets.

Goenka assured the Council that he will be in regular consultation with them while formulating plans and working in coordination with the government for the betterment of the apparel industry.

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18 January 2022, Mumbai:

Traders in Tirrupur market expect cotton yarn prices to increase post the festive season next week. As per a Textile Value Chain report, cotton yarn prices remained steady in the Tirrupur market despite poor demand.

Cotton yarn of 30 counts combed was traded in Tiruppur at Rs 350-360 per kg, 34 counts combed at Rs 360-365 per kg, and 40 counts combed at Rs 390-395 per kg.

Cotton yarn of 30 counts carded was sold at Rs 320-325 per kg, 34 counts carded at ₹325-330 per kg, and 40 counts carded at Rs 345-350 per kg. Prices of cotton yarn of 30 count carded and 40 count carded declined by ₹5 per kg due to poor demand.

Many workers in Tiruppur have gone on holiday to celebrate Pongal and other regional festivals. Hence, demand remained weak. However, the scenario is likely to change at the end of this month.

Fabric manufacturers will have to buy yarn at higher prices to meet demand from downstream industries. Demand for summer clothing will be good, so the prices are expected to rise for the entire value chain of the textile industry.

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22 January 2022, Mumbai:

Bangladesh's exports to the Indian markets are expected to reach $2 billion for the first time at the end of the current financial year as the demand for Bangladeshi products is increasing to the neighbouring country.

The Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) said this in a statement following a meeting between Indian High Commissioner to Bangladesh Vikram K Doraiswami and FBCCI President Md Jashim Uddin at the FBCCI office in Dhaka today.

In the last one year, the trade between Bangladesh and India has increased by 94 per cent, it said.

Addressing the meeting, Doraiswami said his country wants to improve trade and investment relations with Bangladesh in the areas of logistics, food processing, automobiles and garments.

He also sought cooperation from FBCCI for strengthening the bilateral trade relations between the two countries.

Md Jashim Uddin said the development of the logistics sector is the prime agenda of FBCCI.

The apex trade body is working to submit a 12-year plan to the government for the development of the logistics sector, he added.

On India's trade potential with Bangladesh, the FBCCI president said India could be a major supplier of yarn and cotton to the garment industry soon.

Doraiswami further said a new gate would be opened soon at Petrapol land port to facilitate the movement of trucks between the two countries.

THE DAILY STAR (The news article has not been edited by DFU Publications staff)

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22 January 2022, Mumbai:

Estimated to be worth $2844.6 million in 2020, the global cashmere clothing market is expected to be worth $3,333.6 million in 2026 with an estimated growth rate of 4.0 per cent CAGR over the next five year, says Cashmere Clothing Market Report by IndustryDataAnalytics, a digital consultancy company providing research reports across Industries.

China tops both production and consumption

The report states, China is the largest exporter of Cashmere clothing in the world. It exports around 70 percent of the world’s cashmere to various countries.

Italy is its largest importer with imports accounting for 78 percent of total cashmere exported by China in April 2017. China is also the largest importer of Cashmere in the world.

The country’s growing national economy and gradually improving quality of life is driving Cashmere up consumption. Many leading companies like Lara Plana and Brunello Cucinelli are known to import large amounts of Cashmere for their products.

China manufactures Cashmere garments in large quantities. Yet, its brand penetration is low as most of brands operate as OEMs.

This relegates most local brands to the bottom of the Cashmere value chain across the world. US is also a leading manufacturer of cashmere clothing in the world. In 2016, it manufactured about 19 per cent of world’s cashmere production amounting to 3.5 million units.

Cheap raw materials and labor help Asia dominate

Among the continents, Asia leads global cashmere production due to its low raw material costs and easy availability of cheap labor. This has led to many famous cashmere brands setting up their manufacturing bases across Asia.

The fashion luxury cashmere market is largely concentrated with top 20 brands accounting for 50 per cent of global market share.

The report states, Loro Piana, Brunello Cucinelli, Ermenegildo Zegna, Malo, Alyki, Pringle of Scotland, SofiaCashmere, Autumn Cashmere, TSE, Ballantyne, Birdie Cashmere, Maiyet, Gobi, GOYO, Cashmere Holding, Erdos, Hengyuanxiang, Kingdeer, Snow Lotus, Zhenbei Cashmere are some of the leading players in world cashmere market.

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19 January 2022, Mumbai:

Garment Mantra Lifestyle Ltd has reported Consolidated financial results for the period ended December 31, 2021. Financial Results (Q3 FY2022) - QoQ Comparison.

The company has reported total income of Rs. 57.5007 crores during the period ended December 31, 2021 as compared to Rs. 68.6168 crores during the period ended September 30, 2021.

The company has posted net profit / (loss) of Rs. 3.1021 crores for the period ended December 31, 2021 as against net profit / (loss) of Rs. 2.6563 crores for the period ended September 30, 2021.

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