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This image from the CoCuRA software shows how it identifes conventional cotton, organic cotton and other agricultural fields. Source GOTS
17.09.2024

Detecting organically grown cotton with AI support via satellite

The project:

  • analysed 2.7 million square kilometres in India for organic cotton
  • demonstrates 97% accuracy rate in detecting cotton fields, over 80% accu-racy in determining their organic status.
  • aims to increase organic cotton integrity and availability

In a pioneering move that could reshape sustainable agriculture, the Global Organic Textile Standard (GOTS) and AI firm Marple have unveiled the results of their revolutionary Satellite Cotton Monitoring Project in India, demonstrating a 97% accuracy rate in detecting cotton fields and over 80% accuracy in determining their organic status. Addressing critical challenges in the industry, this innovative project aims to increase organic cotton availability and secure fibre integrity, building on GOTS's existing robust measures.

The project:

  • analysed 2.7 million square kilometres in India for organic cotton
  • demonstrates 97% accuracy rate in detecting cotton fields, over 80% accu-racy in determining their organic status.
  • aims to increase organic cotton integrity and availability

In a pioneering move that could reshape sustainable agriculture, the Global Organic Textile Standard (GOTS) and AI firm Marple have unveiled the results of their revolutionary Satellite Cotton Monitoring Project in India, demonstrating a 97% accuracy rate in detecting cotton fields and over 80% accuracy in determining their organic status. Addressing critical challenges in the industry, this innovative project aims to increase organic cotton availability and secure fibre integrity, building on GOTS's existing robust measures.

Global Standard is a trailblazer, solution provider and thought leader in the voluntary sustainability standards space, and the Satellite Cotton Monitoring Project continues this tradition of innovation and creative thinking.

How it Works
Co-financed by Global Standard, the non-profit behind GOTS, and the European Space Agency’s (ESA) Business Applications and Space Solutions (BASS) programme, the project leverages the Cotton Cultivation Remote Assessment (CoCuRA) software developed by Marple.

Field teams visited over 6,000 fields in India, across the states of Gujarat, Haryana, Madhya Pradesh and Maharashtra, collecting data on crops, soil types and cultivation status. This data was then used by Marple to refine the CoCuRA algorithm for cotton specifics in India. Once the algorithm was trained, it was applied to the entire agricultural area of India, covering a staggering 2.7 million square kilometres. Within seconds, CoCuRA detected all organic and conventional cotton fields with remarkable accuracy. A project of this magnitude is only possible with CoCuRA with no other comparable project or data in existence.

Enhancing Organic Cotton Availability
The technology's ability to pinpoint cotton fields where farmers use near-organic or uncertified organic methods can ensure a steady increase in certified organic cotton by facilitating their certification process.

Jeffrey Thimm, organic production specialist at Global Standard, said, "This technology identifies farmers who use sustainable methods that meet organic standards but lack certification. By integrating these farms into conversion projects, it boosts organic cotton supply, promotes sustainable farming practices and enables farmers to access premiums on their supplies."

Securing Organic Fibre Integrity
Building on GOTS's robust integrity measures, the CoCuRA software integrates AI technology with satellite data to verify cultivation practices meticulously. The data collected also contributes to Global Standards’ Global Fibre Registry, consolidating comprehensive data on raw material production before entering the GOTS value chain, further adding to fraud detection and prevention.

Sustainability in Textiles
Global Standard is recognised for its comprehensive approach to sustainability. From promoting human rights along the value chain to banning harmful chemicals in certified textiles, GOTS sets a benchmark for integrity and sustainability. In addition, GOTS certification is a powerful tool that helps companies comply with legal requirements globally.

"For over 20 years, we have been pioneering solutions to help the industry on its journey towards sustainability,” said Claudia Kersten, managing director of Global Standard. “This project is a game changer, combining satellite technology with AI to meet the growing demand for genuine organic cotton. In addition, this eye in the sky will prevent fraud by allowing us to crosscheck locations and field sizes in a very cost-efficient way. It's a win-win-win situation: farmers have an incentive to grow organic and improve their lives, the industry can secure its supply and meet its sustainability goals, and consumers have a greater choice of organic textiles."

Future Prospects and Global Impact
Following the successful pilot in India, the project aims to expand globally.

Daniel Lanz, managing partner at Marple, said, "India faces unique challenges in the satellite-based detection of agricultural fields. Firstly, the country is extremely large and spans several climate zones. Secondly, field sizes are very small, and thirdly, field boundaries are often indistinguishable, with one field merging into the next. Despite these challenges, CoCuRA has achieved astonishing accuracy in detecting cotton fields and assessing their cultivation methods. This breakthrough provides a pioneering overview of cotton production in India that would be impossible to achieve on the ground. CoCuRA will help protect the integrity of organic farmers and may facilitate more smallholders transitioning to organic farming by simplifying the certification process."

Guillaume Tuan Prigent, a business developer and partnership officer in ESA’s Applications Projects and Studies Division said, “The potential impact of the solution lies in its ability to be scaled and this is exactly what we are working on. We are looking to deliver a solution that could have a global impact for the benefit of all. “

Global Standard is eager to see this technology extend to other regions and additional fibres, which could revolutionise how crops are monitored.

Photo by John Zich
14.08.2024

New fabric makes urban heat islands more bearable

With applications in clothing, construction and food storage, the new textile reduces heat from both the sun and thermal radiation from nearby buildings.

This year has already seen massive heatwaves around the globe, with cities in Mexico, India, Pakistan and Oman hitting temperatures near or past 50 degrees Celsius (122 degrees Fahrenheit).  

As global temperatures and urban populations rise, the world’s cities have become “urban heat islands,” with tight-packed conditions and thermal radiation emitting from pavement and skyscraper trapping and magnifying these temperatures. With 68 percent of all people predicted to live in cities by 2050, this is a growing, deadly problem.

With applications in clothing, construction and food storage, the new textile reduces heat from both the sun and thermal radiation from nearby buildings.

This year has already seen massive heatwaves around the globe, with cities in Mexico, India, Pakistan and Oman hitting temperatures near or past 50 degrees Celsius (122 degrees Fahrenheit).  

As global temperatures and urban populations rise, the world’s cities have become “urban heat islands,” with tight-packed conditions and thermal radiation emitting from pavement and skyscraper trapping and magnifying these temperatures. With 68 percent of all people predicted to live in cities by 2050, this is a growing, deadly problem.

In a paper published in Science, researchers from the UChicago Pritzker School of Molecular Engineering (PME) detail a new wearable fabric that can help urban residents survive the worst impacts of massive heat caused by global climate change, with applications in clothing, building and car design, and food storage.  

In tests under the Arizona sun, the material kept 2.3 degrees Celsius (4.1 degrees Fahrenheit) cooler than the broadband emitter fabric used for outdoor endurance sports and 8.9 degrees Celsius (16 degrees Fahrenheit) cooler than the commercialized silk commonly used for shirts, dresses and other summer clothing.

This, the team hopes, will help many avoid the heat-related hospitalizations and deaths seen in global population centers this year alone.

“We need to reduce carbon emission and make our cities carbon negative or carbon neutral,” PME Asst. Prof. Po-Chun Hsu said. “But meanwhile, people are feeling the impact of these high temperatures.”

‘You have to consider the environment’
Existing cooling fabric for outdoor sports works by reflecting the sun’s light in a diffuse pattern so it doesn’t blind onlookers. But in an urban heat island, the sun is only one source of heat. While the sun bakes from above, thermal radiation emitted from buildings and pavement blast city-dwellers with blistering heat from the sides and below.

This means many materials that perform well in lab tests won’t help city-dwellers in Arizona, Nevada, California, Southeast Asia and China when predicted massive heatwaves hit them over the next few weeks.

“People normally focus on the performance or the material design of cooling textiles,” said co-first author Ronghui Wu, a postdoctoral researcher at PME. “To make a textile that has the potential to apply to real life, you have to consider the environment.”

One simple example of considering the environment is that people stand. They are wearing materials designed to reflect direct sunlight, but only their hats, shoulder coverings and the tops of their shoes – about 3 percent of their clothing – face that direct light. The other 97 of their clothes are being heated by the thermal radiation coming at them from the sides and below, which broadband emitter fabric does not fight.

The sun and sidewalk cook with different heats. Creating one material capable of protecting wearers from both provided a major engineering challenge for the team.

“Solar is visible light, thermal radiation is infrared, so they have different wavelengths. That means you need to have a material that has two optical properties at the same time. That's very challenging to do,” said co-first author Chenxi Sui, a PhD candidate at PME. “You need to play with material science to engineer and tune the material to give you different resonances at different wavelengths.”

The costs of comfort
Cooling a home too often means warming the planet, with the carbon impact of air conditioning and refrigeration systems contributing to climate change.  

“Our civilization actually uses about 10 to 15 percent of the energy in total just to make ourselves feel comfortable wherever we go,” Hsu said.

The risk from heat is not distributed evenly, however. In the U.S. and Japan, more than 90 percent of households have an air conditioner, a number that drops to 5 percent in India and parts of Africa.
 
The PME team’s new textile, which has received a provisional patent, can help provide a passive cooling system that can supplement and reduce the need for energy- and cost-intensive systems.

The applications go far beyond clothing.  

A thicker version of the fabric protected by an invisible layer of polyethylene could be used on the sides of buildings or cars, lowering internal temperatures and reducing the cost and carbon impact of air conditioning. Similarly, the material could be used to transport and store milk and other foods that would otherwise spoil in the heat, cutting refrigeration’s impact.

“You can save a lot of cooling, electricity and energy costs because this is a passive process,” Sui said.

Source:

Paul Dailing | University of Chicago

Neste provides renewable Neste RE, a raw material for polymers and chemicals made from bio-based materials. Source: Neste
06.08.2024

First polyester supply chain from sustainable feedstock

A consortium of seven companies across five countries has jointly established a supply chain for more sustainable polyester fiber. Instead of fossil materials, renewable and bio-based materials as well as carbon capture and utilization (CCU*) will be used in the manufacturing of polyester fibers for The North Face brand in Japan. The consortium parties are Goldwin, in the role of project owner, Mitsubishi Corporation, Chiyoda Corporation (all three from Japan), SK geo centric (South Korea), Indorama Ventures (Thailand), India Glycols (India) and Neste.

Neste will provide renewable Neste RE™ as one of the required ingredients for polyester production. The polyester fiber produced in the project is planned to be used by Goldwin for a part of The North Face products, including sports uniforms, in July 2024. After that, the launch of further Goldwin products and brands will be considered.

A consortium of seven companies across five countries has jointly established a supply chain for more sustainable polyester fiber. Instead of fossil materials, renewable and bio-based materials as well as carbon capture and utilization (CCU*) will be used in the manufacturing of polyester fibers for The North Face brand in Japan. The consortium parties are Goldwin, in the role of project owner, Mitsubishi Corporation, Chiyoda Corporation (all three from Japan), SK geo centric (South Korea), Indorama Ventures (Thailand), India Glycols (India) and Neste.

Neste will provide renewable Neste RE™ as one of the required ingredients for polyester production. The polyester fiber produced in the project is planned to be used by Goldwin for a part of The North Face products, including sports uniforms, in July 2024. After that, the launch of further Goldwin products and brands will be considered.

The seven companies apply a mass balancing approach to ensure credible traceability of material streams throughout the supply chain and will jointly continue to proactively promote the defossilization of materials to contribute to a more sustainable society.

Neste (NESTE, Nasdaq Helsinki) uses science and innovative technology to transform waste and other resources into renewable fuels and circular raw materials. The company creates solutions for combating climate change and accelerating a shift to a circular economy. Being the world’s leading producer of sustainable aviation fuel (SAF) and renewable diesel and a forerunner in developing renewable and circular feedstock solutions for polymers and chemicals, the company aims to help its customers to reduce their greenhouse gas emissions by at least 20 million tons annually by 2030.

The company’s ambition is to make the Porvoo oil refinery in Finland the most sustainable refinery in Europe. Neste is committed to reaching carbon-neutral production by 2035, and will reduce the carbon emission intensity of sold products by 50% by 2040. Neste has also set high standards for biodiversity, human rights and the supply chain. The company has consistently been included in the CDP and the Global 100 lists of the world’s most sustainable companies. In 2023, Neste's revenue stood at EUR 22.9 billion

Source:

Neste

Nicolas Meletiou, Pixabay
01.03.2022

Textiles and the environment: the role of design in Europe’s circular economy

From the perspective of European consumption, textiles have on average the fourth highest negative life cycle impact on the environment and climate change, after food, housing and mobility. A shift to a circular textile production and consumption system with longer use, and more reuse and recycling could reduce those impacts along with reductions in overall consumption. One important measure is circular design of textiles to improve product durability, repairability and recyclability and to ensure the uptake of secondary raw materials in new products.

Key messages

From the perspective of European consumption, textiles have on average the fourth highest negative life cycle impact on the environment and climate change, after food, housing and mobility. A shift to a circular textile production and consumption system with longer use, and more reuse and recycling could reduce those impacts along with reductions in overall consumption. One important measure is circular design of textiles to improve product durability, repairability and recyclability and to ensure the uptake of secondary raw materials in new products.

Key messages

  • In 2019, the EU textile and clothing sector had a turnover of EUR162 billion, employing over 1.5 million people across 160,000 companies. As was the case in many sectors, between 2019 and 2020, the COVID-19 crisis decreased turnover by 9% for textiles as a whole and by 17% for clothing.
  • In 2020, textile consumption in Europe had on average the fourth highest impact on the environment and climate change from a global life cycle perspective. It was the consumption area with the third highest impact on water and land use, and the fifth highest in terms of raw material use and greenhouse gas emissions.
  • To reduce the environmental impacts of textiles, a shift towards circular business models, including circular design, is crucial. This will need technical, social and business model innovation, as well as behavioural change and policy support.
  • Circular design is an important enabler of the transition towards sustainable production and consumption of textiles through circular business models. The design phase plays a critical role in each of the four pathways to achieving a circular textile sector: longevity and durability; optimised resource use; collection and reuse; and recycling and material use.

Textiles are identified as a key value chain in the EU circular economy action plan and will be addressed in the forthcoming European Commission’s 2022 EU strategy for sustainable and circular textiles and EU sustainable products initiative. This briefing aims to improve our understanding of the environmental and climate impacts of textiles from a European perspective and to identify design principles and measures to increase circularity in textiles. It is underpinned by a report from the EEA’s European Topic Centre on Circular Economy and Resource Use available here.

1. Production, trade and consumption of textiles
Textiles is an important sector for the EU economy. In 2019, the EU textile and clothing sector had a turnover of EUR162 billion, employing over 1.5 million people in 160,000 companies. As was the case for many sectors, between 2019 and 2020, the COVID-19 health and economic crisis decreased turnover by 9% for textiles as a whole and by 17% for clothing (Euratex, 2021).

In 2020, 6.9 million tonnes of finished textile products were produced in the EU-27. EU production specialises in carpets, household textiles and other textiles (including non-woven textiles, technical and industrial textiles, ropes and fabrics). In addition to finished products, the EU produces intermediate products for textiles, such as fibres, yarns and fabrics (Köhler et al., 2021).

The textiles sector is labour intensive compared with others. Almost 13 million full-time equivalent workers were employed worldwide in the supply chain to produce the amount of clothing, textiles and footwear consumed in the EU-27 in 2020. This makes the textiles sector the third largest employer worldwide, after food and housing. Most production takes place in Asia, where low production costs come at the expense of workers’ health and safety.
 
Textiles are highly globalised, with Europe being a significant importer and exporter. In 2020, 8.7 million tonnes of finished textile products, with a value of EUR125 billion, were imported into the EU-27. Clothing accounts for 45% of imports in terms of volume, followed by household textiles, other textiles and footwear (Eurostat, 2021a). The EU imports mainly from China, Bangladesh and Turkey, and exports mainly to the United Kingdom, Switzerland and the United States (Euratex, 2020).

Consumption
European households consume large amounts of textile products. In 2019, as in 2018, Europeans spent on average EUR600 on clothing, EUR150 on footwear and EUR70 on household textiles (Köhler et al., 2021; Eurostat, 2021b).

The response to the COVID-19 pandemic, involving stay-at-home measures and the closure of companies and shops, decreased textile production and demand overall (Euratex, 2021). As a result, the consumption of clothing and footwear per person decreased in 2020, relative to 2019, while the consumption of household textiles slightly increased. Average textile consumption per person amounted to 6.0kg of clothing, 6.1kg of household textiles and 2.7kg of shoes in 2020 (see Figure 1).

Apart from this COVID-related drop in consumption in 2020, the estimated consumption of clothing and footwear stayed relatively constant over the last decade, with slight fluctuations between years (see Figure 2). Similarly, the consumption of household textiles was also relatively steady, with a slight increase over the decade.

When calculating the ‘estimated consumption’ based on production and trade data from 2020, and excluding industrial/technical textiles and carpets, total textile consumption is 15kg per person per year, consisting of, on average:

  • 6.0kg of clothing
  • 6.1kg of household textiles
  • 2.7kg footwear.

For 2020, this amounts to a total consumption of 6.6 million tonnes of textile products in Europe. Textile consumption estimates are uncertain, as they vary by study, often using different scopes and calculation methods.

2. Environmental and climate impacts of textiles
The production and consumption of textiles has significant impacts on the environment and climate change. Environmental impacts in the production phase result from the cultivation and production of natural fibres such as cotton, hemp and linen (e.g. use of land and water, fertilisers and pesticides) and from the production of synthetic fibres such as polyester and elastane (e.g. energy use, chemical feedstock) (ETC/WMGE, 2021b). Manufacturing textiles requires large amounts of energy and water and uses a variety of chemicals across various production processes. Distribution and retail are responsible for transport emissions and packaging waste.

During use and maintenance — washing, drying and ironing — electricity, water and detergents are used. Chemicals and microfibres are also emitted into the waste water. Meanwhile, textiles contribute to significant amounts of textile waste. At the end of their life, textiles often end up in general waste and are incinerated or landfilled. When textile waste is collected separately, textiles are sorted and reused, recycled or disposed of, depending on their quality and material composition. In 2017, it was estimated that less than 1% of all textiles worldwide are recycled into new products (Ellen MacArthur Foundation, 2017).

To illustrate the magnitude of the impacts of textile consumption on raw material use, water and land use and greenhouse gas emissions compared with other consumption categories, we have updated our calculations of the life cycle environmental and climate impacts in the EU. We used input-output modelling based on data from the Exiobase database and Eurostat. In line with the reduced textile consumption level in 2020 because of the COVID-19 pandemic, the environmental impacts decreased from 2019 to 2020.

Raw material use
Large amounts of raw materials are used for textile production. To produce all clothing, footwear and household textiles purchased by EU households in 2020, an estimated 175 million tonnes of primary raw materials were used, amounting to 391kg per person. Roughly 40% of this is attributable to clothes, 30% to household textiles and 30% to footwear. This ranks textiles as the fifth highest consumption category in Europe in terms of primary raw material use (see Figure 3).

The raw materials used include all types of materials used in producing natural and synthetic fibres, such as fossil fuels, chemicals and fertilisers. It also includes all building materials, minerals and metals used in the construction of production facilities. Transport and retail of the textile products are included as well. Only 20% of these primary raw materials are produced or extracted in Europe, with the remainder extracted outside Europe. This shows the global nature of the textiles value chain and the high dependency of European consumption on imports. This implies that 80% of environmental impacts generated by Europe’s textile consumption takes place outside Europe. For example, cotton farming, fibre production and garment construction mostly take place in Asia (ETC/WMGE, 2019).

Water use
Producing and handling textiles requires large quantities of water. Water use distinguishes between ‘blue’ water (surface water or groundwater consumed or evaporated during irrigation, industry processes or household use) and ‘green’ water (rain water stored in the soil, typically used to grow crops) (Hoekstra et al., 2012).

To produce all clothing, footwear and household textiles purchased by EU households in 2020, about 4,000 million m³ of blue water were required, amounting to 9m³ per person, ranking textiles’ water consumption in third place, after food and recreation and culture (see Figure 4).

Additionally, about 20,000 million m³ of green water was used, mainly for producing cotton, which amounts to 44m³ per person. Blue water is used fairly equally in producing clothing (40%), footwear (30%) and household and other textiles (30%). Green water is mainly consumed in producing clothing (almost 50%) and household textiles (30%), of which cotton production consumes the most.

Water consumption for textiles consumed in Europe mostly takes place outside Europe. It is estimated that producing 1kg of cotton requires about 10m³ of water, typically outside Europe (Chapagain et al., 2006).

Land use
Producing textiles, in particular natural textiles, requires large amounts of land. The land used in the supply chain of textiles purchased by European households in 2020 is estimated at 180,000 km², or 400m² per person. Only 8% of the land used is in Europe. Over 90% of the land use impact occurs outside Europe, mostly related to (cotton) fibre production in China and India (ETC/WMGE, 2019). Animal-based fibres, such as wool, also have a significant land use impact (Lehmann et al., 2018). This makes textiles the sector with the third highest impact on land use, after food and housing (see Figure 5). Of this, 43% is attributable to clothes, 35% to footwear (including leather shoes, which have a high land use impact because of the need for cattle pasture) and 23% to household and other textiles.

Greenhouse gas emissions
The production and consumption of textiles generate greenhouse gas emissions, in particular from resource extraction, production, washing and drying, and waste incineration. In 2020, producing textile products consumed in the EU generated greenhouse gas emissions of 121 million tonnes carbon dioxide equivalent (CO2e) in total, or 270kg CO2e per person. This makes textiles the household consumption domain responsible for the fifth largest impact on climate change, after housing, food, transport and mobility, and recreation and culture (see Figure 6). Of this, 50% is attributable to clothes, 30% to household and other textiles, and 20% to footwear. While greenhouse gas emissions have a global effect, almost 75% are released outside Europe, mainly in the important textile-producing regions in Asia (ETC/WMGE, 2019).

About 80% of the total climate change impact of textiles occurs in the production phase. A further 3% occurs in distribution and retail, 14% in the use phase (washing, drying and ironing), and 3% during end of life (collection, sorting, recycling, incineration and disposal) (ECOS, 2021; Östlund et al., 2020).

Textiles made from natural fibres, such as cotton, generally have the lowest climate impact. Those made from synthetic fibres (especially nylon and acrylic) generally have a higher climate impact because of their fossil fuel origin and the energy consumed during production (ETC/WMGE, 2021b; Beton et al., 2014).

3. Design as an enabler of circular business models for textiles
To reduce the environmental and climate change impacts of textiles, shifting towards circular business models is crucial to save on raw materials, energy, water and land use, emissions and waste (ETC/WMGE, 2019). Implementing and scaling circular business models requires technical, social and business model innovation; as well as enablers from policy, consumption and education (EEA, 2021).

Circular design is an important component of circular business models for textiles. It can ensure higher quality, longer lifetimes, better use of materials, and better options for reuse and recycling. While it is important to enable the recycling and reuse of materials, life-extending strategies, such as design for durability, ease of reuse, repair and remanufacturing, should be prioritised. Preventing the use of hazardous chemicals and limiting toxic emissions and release of microplastics at all life cycle stages should be incorporated into product design.

Designing for circularity is the most recent development in design for sustainability. Expanding a technical and product-centric focus to a focus on large-scale system-level changes (considering both production and consumption systems) shows that this latest development requires many more disciplines than traditional engineering design. Product design as a component of a circular business model depends on consumer behaviour and policy to realise its potential and enable implementation. Figure 7 shows the linkages between the circular business model, product design, consumer behaviour and policy. All are needed to slow down and close the loop, making it circular.

(c) Messe Frankfurt Exhibition GmbH
22.12.2020

Decade of Action: Texpertise Network launches further measures to implement the Sustainable Development Goals

Since 2019, the Messe Frankfurt Texpertise Network has been working with the Conscious Fashion Campaign and the United Nations Office for Partnerships to bring the Sustainable Development Goals to all 58 textile events in the network worldwide. Numerous measures have already been implemented. Others are imminent.

Shortly before the start of the COVID-19 crisis, the UN Secretary-General Antonio Gutérrez hailed the start of the Decade of Action. As of 2020, the international community now has just ten years to achieve the 17 Sustainable Development Goals (SDGs) to which the UN Member States committed themselves in the 2030 Agenda. As part of the collaboration with the Conscious Fashion Campaign and the United Nations Office for Partnerships, the Messe Frankfurt Texpertise Network will put the SDGs on the agenda of additional events in December, thus further supporting their implementation in the fashion and textile industry.

Since 2019, the Messe Frankfurt Texpertise Network has been working with the Conscious Fashion Campaign and the United Nations Office for Partnerships to bring the Sustainable Development Goals to all 58 textile events in the network worldwide. Numerous measures have already been implemented. Others are imminent.

Shortly before the start of the COVID-19 crisis, the UN Secretary-General Antonio Gutérrez hailed the start of the Decade of Action. As of 2020, the international community now has just ten years to achieve the 17 Sustainable Development Goals (SDGs) to which the UN Member States committed themselves in the 2030 Agenda. As part of the collaboration with the Conscious Fashion Campaign and the United Nations Office for Partnerships, the Messe Frankfurt Texpertise Network will put the SDGs on the agenda of additional events in December, thus further supporting their implementation in the fashion and textile industry.

Virtual event “Discover the SDGs – To Power the Decade of Action”
From 1-30 December 2020, the Texpertise Network is taking part in the virtual learning experience “Discover the SDGs”, which was initiated by the Conscious Fashion Campaign in collaboration with the United Nations Office for Partnerships. The aim of the event is to strengthen the knowledge and commitment within the fashion industry that is needed to further support the Decade of Action to deliver the Sustainable Development Goals. One component of the event is a virtual and interactive exhibition on the 17 goals, as well as on-demand discussions with industry leaders, United Nations representatives and advocates of the United Nations, including Detlef Braun, Member of the Executive Board, and Thimo Schwenzfeier, Director Marketing Communications Textiles and Textile Technologies at Messe Frankfurt, as well as from Kering, Lenzing, Allbirds, Arch and Hook, Artistic Milliners, Orta, ITL, Vogue Business, CFDA, Collina Strada and the Swarovski Foundation.

“This is a critical time to accelerate partnerships to address the world's biggest challenges – from eliminating poverty, hunger and inequalities to reversing climate change and unsustainable consumption and production practices,” said Annemarie Hou, acting Executive Director of the United Nations Office for Partnerships. “The fashion industry is an important ally for the United Nations in this Decade of Action to deliver the SDGs by 2030.”

Conscious Fashion Campaign becomes a presenting partner of Frankfurt Fashion Week
Joining forces to improve the fashion industry: Frankfurt Fashion Week is positioning itself as the host of the future of fashion and actively driving forward the transformation towards a future-oriented, more sustainable fashion and textile industry. All decision-makers looking to instigate this change will be coming together in Frankfurt am Main from 5-9 July 2021. The initiators of Frankfurt Fashion Week – Messe Frankfurt and the Premium Group – have achieved a real coup: Conscious Fashion Campaign, working in collaboration with the United Nations Office for Partnerships, will be the presenting partner. Messe Frankfurt will build on its collaboration with the United Nations Office for Partnerships. The Sustainable Development Goals (SDGs) will be a prerequisite for exhibitors by 2023. And the Frankfurt Fashion SDG Summit by CFC is set to become the leading international conference for sustainability in the fashion world.

Expansion of internal sustainability communication
17 goals, 58 textile events worldwide, around 600,000 visitors and 23,000 exhibitors in 2019: with its global events, the Messe Frankfurt Texpertise Network offers unique reach for supporting the SDGs, even during the corona pandemic. The participating subsidiary companies, sales partners and Messe Frankfurt partners abroad who organise the relevant events play an important role in this. To actively expand knowledge about and further commitment to the Sustainable Development Goals, the Texpertise Network is organising several online seminars, including for staff members in Argentina, Ethiopia, China, Hong Kong, India, Japan, Russia, South Africa and the USA and thus expanding its internal sustainability communication.

SDG actions up to now
Ever since the expanded collaboration between the Messe Frankfurt Texpertise Network, the Conscious Fashion Campaign and the United Nations Office for Partnerships was announced at the UN headquarters in New York in December 2019, the international Messe Frankfurt textile events have implemented numerous measures to support the SDGs.

At the Messe Frankfurt textile events in Germany alone, a number of things came to fruition: the most recent physical and digital editions of Heimtextil, the leading trade fair for home and contract textiles and Neonyt, global hub for fashion, sustainability and innovation, offered panel discussions, press conferences and video messages, including with the Conscious Fashion Campaign and United Nations Office for Partnerships. An SDG Lounge in the Green Village at Heimtextil and selfie walls with the SDGs inspired exhibitors, visitors and influencers alike to engage with the 17 goals and share them on their social network channels. Podcasts were produced that can still be listened to on the Neonyt and Heimtextil channels and Neonyt also hosted e.g. the influencer challenge “Let's wear the goals!”.

A great deal has also already been achieved internationally: in March 2019, Neonyt organised a showcase with selected Neonyt brands to mark the foundation of the “UN Alliance for Sustainable Fashion” in Nairobi. Techtextil India launched Techtextil NEXT at its 2019 edition, India’s first hackathon for technical textiles and sustainability. Among those who attended were Shrikar Dhole, founder and CEO of the SDG Foundation and Niharika Gautam, who campaigns for the achievement of the SDGs in the fashion industry and co-leads the fashion section of the All Ladies League Delhi. The Heimtextil Russia 2020 Digital Edition was able to attract a prominent figure to give a message of greeting, namely Vladimir Kuznetsov, head of the UN Information Centre (UNIC) in Moscow. The digital edition of Texworld USA (now Texworld New York City) and Apparel Sourcing USA in summer 2020 offered a talk by the Conscious Fashion Campaign and supported the production of a podcast with Claire Kells from the UN Global Compact.

With its SDG actions to date, Messe Frankfurt Texpertise Network is estimated to have reached around 146,000 visitors, 170,000 followers on social media channels and 65,000 subscribers to newsletters about participating events at home and abroad. Added to this is also the approx. 2.5 million followers of the influencers involved in the actions.

Textildruckerei Heinrich Mayer GmbH, Michael Steidle (c) Textildruckerei Heinrich Mayer GmbH
21.07.2020

„COVID-19 - We could and should have appeared better as noble knights" Michael Steidle, Textildruckerei Heinrich Mayer GmbH

  • Interview with Michael Steidle, Managing Director Textildruckerei Heinrich Mayer GmbH

At least Europe seems to be able to breathe a sigh of relief after weeks of lockdown during the corona pandemic. The textile industry, an industry that has lived globalisation for so many years, is facing the challenge of maintaining its place in the new normal and building on its previous performance as quickly as possible.
Textination talked to three company representatives along the textile chain about personal and operational experiences.

  • Interview with Michael Steidle, Managing Director Textildruckerei Heinrich Mayer GmbH

At least Europe seems to be able to breathe a sigh of relief after weeks of lockdown during the corona pandemic. The textile industry, an industry that has lived globalisation for so many years, is facing the challenge of maintaining its place in the new normal and building on its previous performance as quickly as possible.
Textination talked to three company representatives along the textile chain about personal and operational experiences.

The Interview with Michael Steidle, managing director at the textile printing company Heinrich Mayer GmbH, marks the provisional end of our series that started with Wolfgang Müller, Head of Sales & Services at Mayer & Cie. GmbH & Co. KG and was continued by Andreas Merkel, managing director of Gebr. Otto Baumwollfeinzwirnerei GmbH & Co. KG. The textile printing company Mayer, a family business on the Swabian Alb, is a leader in textile printing, in screen, rouleaux, rotary, sublimation and flock printing and as well as in 3D coating. They are increasingly using these skills in the area of technical textiles.

How have you felt about the corona era to date - as a company and personally?
What would you on no account want to go through again and what might you even consider maintaining on a daily basis?

 The corona time hit us hard. At the beginning of April, sometimes it felt like the lights would go out within the next 24 hours. In numbers there is a drop in sales of 30 percent.
And that's not just the way we are, this crisis has incredibly broader implications. Involved in the word of the Chamber of Commerce I am concerned with many companies in the region. Sectors that would not come to mind spontaneously also feel the effects. This also includes recycling companies. After all, there is also less commercial waste when companies are on short-time work.
At a personal level you can deal with the crisis, hand hygiene, sneeze etiquette, you can learn all of this. But we miss people-to-people contacts. We have a teenage daughter; young people in particular lack the ability to be out and about with their peers.

 
What has the pandemic meant for your company so far?
As I said, the Corona period brought us a significant drop in sales. That means we think twice before spending money. At the beginning of the year we moved to our new, spacious company building. There are still a few small investments to be made. So far, we have put it off until the situation has calmed down again. And so do many. The economic network extremely got out of hand due to the lockdown.
We applied for short-time work, which has been running for three months now. However, you have to see how long that makes sense. Our customers also had a drop in sales, which they first of all have to recover.

 
What adjustments or innovations to your product portfolio have you felt obliged by the pandemic to undertake?
The mask production was a very strong topic in April and May, the phone almost rang continuously. This enabled us to compensate for many orders that were lost otherwise.
We reacted quickly, not only printing masks classically, but also developing coatings for medical face masks and protective clothing. The coatings that we offer are antibacterial and have the lotus effect. This results in the formation of droplets in the aerosols. We have had checked and certified these innovations in an urgent procedure.
We converted our machines ad hoc so that we could apply innovative coatings instead of paint. This was even possible for ready-made masks.
In general, I rate this ability to react quickly as one of our great strengths. We are a small company, so the path from idea to implementation is rather short. If we recognize a trend, an opportunity in our industry, we examine ourselves: Do we have resources that could be used or adapted to offer a solid, marketable solution in a very short time? This refers to know-how, ideas, machines and, for larger projects, also partners. Experience has shown that on the one hand we have the necessary imagination, but on the other hand we also have a fairly realistic view of ourselves. If we can answer the question with “yes”, then we get started without delay. We can evaluate a trial in the evening and continue working on it the next day. There is no need for a meeting with five persons beforehand.
 

What are your views on global supply chains in the future, and will you be drawing consequences for your procurement policy?
We cannot avoid global supply chains; and it will remain this way. In the short term, you may reflect on regional procurement, as far as that is still possible. Many things are simply no longer available and the development over the past 30 years cannot be turned back. Let's take pigment paint: it comes from India and China, otherwise it doesn't exist anymore. Nobody in Europe can keep the prices. And yes, that also means that the production of systemically relevant products can no longer be guaranteed.

          
How do you rate the importance of partnerships within the industry in the future? Does Covid-19 have the potential to promote the creation of new cooperation arrangements in the industry? Or have they already taken shape?
Existing partnerships are important. We must keep the ball rolling: Interrupted projects have to be continued with existing partners.
I think it is important to maintain partnerships at eye level. Sure, now everyone has to see how they can make ends meet. It will be shown, however, who works loyally in the long term and with respect to the business.
Personally, it is important for me to be true to my word. Only a few days ago I spoke to a student, whom we promised her internship and a corresponding payment in February. This young woman can start her internship with us; what paying is concerned, I had to tell her honestly that we have to talk about it again. Fortunately, that was not a problem. It is important to the student that she can complete the required internship at all. This is not so easy since most companies do not accept anyone right now. That is understandable too, but we will need the well-trained people again soon, that’s for sure!

 
What initiatives or approaches for your industry would you welcome for the near future?
I would be very interested in a positive and comprehensive description of what value added is still available in Germany. An initiative that illustrates that the textile industry is an important industry, with many companies that have been family-owned for generations, often with a young, dynamic management and high-quality products. Really nobody has that on his radar. Just today, two designers from a company nearby visited us. They were surprised which services we offer in the field of technical textiles - they were not even aware of it.
The textile industry has played itself down for a long time, that has to stop. Of course, we no longer have added value like the machine building industry. But now, in the corona crisis, it would have been the right time to take advantage of the situation and to initiate much-needed lobbying..


What would you like to see as part of the German textile industry? Do you feel that the status of the German textile industry has changed as a result of the pandemic, especially in respect of public procurement?
No, only at very short notice. Everything was taken during the crisis, the main thing was that the requested product, i.e. masks and protective clothing, was even available. Now the old cycle is back: I have a certain budget, where can I get the most for it? This is frustrating because the willingness to face this challenge was high on the part of the companies.
We also have driven the development and had our coatings for masks certified in an urgent process. Others have switched their entire production at a significant cost to meet demand. Nobody became a millionaire this way.
I think the textile industry could have sold better here. We could and should have appeared better as noble knights. Unfortunately, this was lost in the heat of the battle.

Until now the big issues have been globalisation, sustainability / climate change / environmental protection, digitisation, the labour market situation and so on. Where do they stand now and how must we rate them against the backdrop of the Covid-19 pandemic?
We take sustainability into account with our certifications, with GOTS and ISO 9001. Digitisation does not work quickly for us; it will take years before we can digitise processes. Sure, in administration we are now increasingly working with web meetings and video conferences, but personal contact is important to me. I regularly give lectures; my next one will be at the Zurich University of Applied Sciences and I very much hope that it can take place. I am just a guy for direct contact.
The labour market situation depends on the pandemic and how it develops. In any case, it remains difficult to get young people excited about textile professions. When I open a mobile phone store, I don't need a day to have my employees together. When we present ourselves at a training fair, we are happy to have a handful of good conversations.
Training is so valuable. Someone who has one will always have a different status than an unskilled person, even if - at some point - he works in a completely different branch. The dual training system is absolutely untouchable for me, because we live from this economic performance. We have nothing else but our knowledge. And we have to keep developing because only the high level gives the necessary output.
 

What lessons are to be learnt in respect of these targets for the post-corona era?
Innovation, innovation, innovation. You must not stand still. Nobody knows what to do next. But in three years from now I have to live from what I am developing today, just like I live from what I developed three years ago. Now, in times of Corona, it is much harder to remember, but it does not help: I can’t stand still, waiting for what is happening next, being like a deer caught in the headlights.

This interview was conducted by Ines Chucholowius, CEO Textination GmbH

(c) SANITIZED AG
16.06.2020

‘WHAT SMELLS LESS HAS TO BE WASHED LESS OFTEN’

Swiss Quality Principles plus Innovation Strength: Hygiene and Material Protection from SANITIZED 

SANITIZED AG is known as a worldwide leading Swiss company in hygiene functions and material protection for textiles and plastics. Globally oriented, pioneering work is done with federal thoroughness in the development of innovative, effective and safe technologies for antimicrobial equipment. Textination had the opportunity to speak to CEO Urs Stalder about the growing importance of hygiene in times of the pandemic.

Swiss Quality Principles plus Innovation Strength: Hygiene and Material Protection from SANITIZED 

SANITIZED AG is known as a worldwide leading Swiss company in hygiene functions and material protection for textiles and plastics. Globally oriented, pioneering work is done with federal thoroughness in the development of innovative, effective and safe technologies for antimicrobial equipment. Textination had the opportunity to speak to CEO Urs Stalder about the growing importance of hygiene in times of the pandemic.

Founded in 1935, the majority ownership of the public company SANITIZED still lies with the founding families. You are the market leader in Europe in hygiene functions and material protection for textiles and plastics. If you had to introduce yourself in 100 words to someone who doesn't know the company: What influenced you in particular in the development of the company and what made it unique?
Preventing odor in shoes, that's how it started in 1935. This is where our business model came from: the antimicrobial protection of plastics and textiles.
SANITIZED develops ready-to-use additives that are individually tailored to the protection goals of the end products and that work, for example, against the development of odors in work clothing, against permastink (resilient odors) in synthetic textiles or against mold growth.
The 360-degree service is unique: This includes backing in product development, support for all regulatory questions and assistance with marketing topics.
SANITIZED AG is globally active and yet committed to Swiss quality principles. More than 400 brands worldwide use the ingredient brand Sanitized® on their end products.

Think global – act local? You have sister companies in France, the United States and Asia. Your roots and headquarters are based in Switzerland. The pandemic is currently increasing the question of intact supply chains. What does this mean for your company in the future?
Indeed, the broad global positioning enables us to do business locally. The local anchoring results in synergies, also in sourcing. That will be even more important for us in the future. And, of course, the issues of speed and customer proximity are also positive aspects of this approach.

From textiles to plastic surfaces to cans: SANITIZED Preservation AG was founded in 2018 to take care of colors and coatings. SANITIZED is thus opening up another market. Which markets are you particularly interested in and which product areas do you feel particularly challenged by?
Customers want paints and varnishes without solvents, which is better for people and the environment. But with the alternative water-based products, there is a high risk of contamination by microbes. This starts with the production, continues with the storage in the can and also in the application. The result is mold formation.
Antimicrobial protection for paints or coatings is particularly relevant in hygiene-sensitive areas of industrial production and, of course, in the medical environment. The risk of contamination and mold multiplies in regions with high air humidity. This is another reason why India is a growth market for this business area.   

To break new ground means decisiveness, overcoming fears - and thus the courage to fail. Not every project can succeed. In retrospect - about which entrepreneurial decision are you particularly glad to have made it?
Let me mention just three decisions that are important for corporate development: This is definitely the foundation of the SANITIZED Preservation division. This is about the antimicrobial protection of paints and varnishes. This also includes setting up our in-house TecCenter, in which we can perform laboratory services even faster. It was recently accredited by the International Antimicrobial Council. And right now it is the sales cooperation with Consolidates Pathway on the US market for our textile hygiene function solutions.

You state that innovation is embedded in the company's DNA. How do you live your inno-vation management and which role do the requirements of end consumers and your indus-trial customers play in this setting?
We ourselves as well as our global sales partners are in close contact with the manufacturers of textile products. This is also why we know the requirements and needs of the market. Sustainability is emerging from the niche in the mass market.
This is exactly what our product Sanitized® Odoractiv 10 has been developed for and awarded by the Swiss Innovation Award.
It is a dual-acting, biocide-free, patented technology against odor development and odor adsorption in textiles. Many customers appreciate our expertise and use it in the development of new products to create innovative textiles with additional benefits for the requirements of the market.

Tailor-made or solutions only for major customers? The topic of individualization up to lot size 1 takes up a lot of space today. What do you think about individual product solutions - or can you cover everything with the SANITIZED portfolio comprising 40 products?
We have a very versatile technology “kit” at our disposal. It is part of our daily business to respond individually to the special customer needs and the respective product requirements. We offer tailor-made recipes for this and our extensive application know-how flows into the advice for the individual application situation at the customer.

There are various definitions for sustainability. Customers expect everything under this term - from climate protection to ecology, from on-site production in the region to the ex-clusion of child labor, etc. Textile finishing does not always sound unproblematic. Public procurement is increasingly switching to sustainable textiles. What does this mean for SANITIZED and what do you do to bring the concept of sustainability to life for your company, and which activities and certifications do you focus on?
Resource conservation is a key issue for us. Since we “think” about the topic of sustainability along the entire production chain, including in research and development, resource-saving application techniques for the textile industry are important to us. Sanitized® additives can be integrated into standard production processes, so that additional energy is not required for complementary finishing processes.
Our portfolio also includes biocide-free products. Sanitized® Odoractiv10 prevents odors from sticking to textiles. Sanitized® Mintactiv uses the natural antibacterial effect of mint and was specially developed for cotton textiles.
And what smells less has to be washed less often. This saves water and electricity and extends the useful life of textiles.
          
SANITIZED supports its customers with a so-called 360° service. What do you mean by that and why don't you concentrate exclusively on the technical aspects of the products?
The SANITIZED brand wants to create real added value for its customers. That is why we have expanded our core competence as a developer and provider of innovative antimicrobial additives with an all-round service. The obvious thing to do is to support the production process, of course that is part of it. Furthermore; we also provide the latest knowledge on regulatory issues - world-wide. And we offer comprehensive marketing assistance for our license partners who use Sanitized® as an ingredient brand. Making correct advertising statements is important not only in times of Corona. Because it's always about transparency and security for people. Warning letters or delivery stops due to incorrect claims can be prevented.
Cooperation with the institutes is absolutely sensible; after all, it is their job to do research for com-panies that they cannot shoulder on their own. This includes testing facilities, as well as applying for funding, which is only possible in cooperation with research institutes. However, they are public institutions and therefore have different objectives per se than a company: We have to bring a promising idea to the market as quickly as possible to show a profit. A research institute does not have this pressure.

Which goal do you pursue with the website https://www.sanitized.house for example?
Yes, it may seem unusual when SANITIZED as a B2B company designs a platform for end customers. But more than 400 brands use Sanitized® as an ingredient brand. So, we are connected to the end customer in this way.
In the virtual house - Sanitized® the house -, visitors can playfully experience in which areas of life hygiene and material protection contribute to the quality of life. A click in the wardrobe links to products - including brand names - that have been equipped with Sanitized®: clothing in the wardrobe, the carpet in the living room or the towel in the bathroom. The best thing to do is try it yourself.

The company is working consistently on implementing Sanitized® as a brand. The hygiene function for textiles and plastics shall be documented and thus offer added value to customers and consumers. Co-branding is not always welcome, especially in the clothing, sports and outdoor sector. How rocky was the road until Sanitized® was advertised as an ingredient brand by 400 license partners on the product?
Of course, there are brands that do not want a second brand on their end product. But a trend is causing more and more manufacturers to rethink: Customers are increasingly asking questions about ingredients and their origins. Elucidation and transparency are growing needs. And that's exactly what we contribute to. In addition, this is an opportunity for a textile brand to stand out positively in the flood of suppliers. Differentiation through added value - donated by Swiss technology from SANITIZED. Those arguments work worldwide.

You have a diversified network. Just to mention to two of them - you have been a system partner since the foundation of bluesign® and you work closely with Archroma in sales matters. In which aspects do you see the special value of partnerships? Are there segments existing where you can imagine new partners and collaborations?
Partnerships are important and work if all pursue common goals and can mutually fertilize each other. For example, the partnership with the company Consolidates Pathway in the United States is brand new one.

For which socially relevant topics do you see a particularly great need for innovation and action in the next 5 years? What is your assessment that your company will be able to offer solutions for this with its products? And what role do the experiences from the corona pandemic play in this assessment?
Nobody can predict what the corona pandemic will change in the long term. Environmental protection and thus the conservation of our resources is and remains an important issue.
The fact that the textile industry can make a big contribution to this is slowly gaining awareness among the masses. Keywords are cheap production or water consumption for jeans production. People are becoming more sensitive to what companies and brands are doing. It will be all the more important to act and communicate openly and transparently.
For SANITIZED, it is a mission and a matter of course that only products with official approvals are used and that we work ac-cording to the bluesign principle. This is where traceability and transparency begin.


This interview was conducted by Ines Chucholowius, CEO Textination GmbH

Copyright photos: MEX Exhibitions Pvt. Ltd. / Messe Frankfurt
06.08.2019

DIGITEX SHOW 2019 GEARS UP FOR ANOTHER MILESTONE

Digital textile printing technologies to take Centre Stage at Gartex Texprocess India 2019 – the 3-day comprehensive exhibition on complete supply-chain of garmenting & textile manufacturing solutions

India’s leading trade show, dedicated completely to garmenting and textile manufacturing solutions and technologies, Gartex Texprocess India is scheduled from 10-12 August 2019. Spread over 1,50,000 sq. ft. exhibit area, the show will be held across six halls in Pragati Maidan, wherein more than 200 companies will display over 400 brands. A hub dedicated completely for showcasing and highlighting latest developments in machinery, inks, software and services in digital textile printing, the Show is designed to take the country’s fabric printing & apparel industry to the next level.

Digital textile printing technologies to take Centre Stage at Gartex Texprocess India 2019 – the 3-day comprehensive exhibition on complete supply-chain of garmenting & textile manufacturing solutions

India’s leading trade show, dedicated completely to garmenting and textile manufacturing solutions and technologies, Gartex Texprocess India is scheduled from 10-12 August 2019. Spread over 1,50,000 sq. ft. exhibit area, the show will be held across six halls in Pragati Maidan, wherein more than 200 companies will display over 400 brands. A hub dedicated completely for showcasing and highlighting latest developments in machinery, inks, software and services in digital textile printing, the Show is designed to take the country’s fabric printing & apparel industry to the next level.

The 4th edition of the Show is gearing up incorporating DIGITEX Show highlighting the developments and innovations taking place in the digital textile printing technology, which is eventually picking up fast in the apparel manufacturing industry across the country. More than 20,000 enthusiastic visitors are expected to witness the latest developments during the three days of extreme business activities. They would not only take a glimpse of what new has hit the turf in the digital textile printing, but will also experience the newest technologies through various live demonstrations that the leading brands catering to the solution for soft signage and sublimation printing would put on the display.

The transformation in digital technologies over the past few years has been tremendous, which the organisers found important to bring forth under the DIGITEX @ Gartex Texprocess 2019. The advancement in technologies and rapidly increasing awareness has brought it at a revolution of sorts. Digitex hopes to become a one-stop solution hub for the latest machinery, inks, software and services to serious buyers and decision makers of the digital textile printing industry. The Show would also witness renowned brands offering live demo of their respective machines to let the visitors feel and appreciate the development taking place in the fabric digital printing arena which is slowly but steadily picking up.

Ever since direct to garment (DTG) printing has been introduced, textile printing industry has started finding new horizons with a fast and flexible production solution that delivers exceptional image quality, which in turn is opening up new doors of opportunities for those who are willing to enter into the apparel industry or are eager to expand their garmenting & textile business. Digitex @ Gartex Texprocess India is an important event for the digital printing technology leaders as it offers them the perfect Launchpad as far as Indian market is concerned.

Moreover, experts feel that increasing thrust and resultant R&D investment in progression of digital textile printing technology will further boost the growth avenues for the digital textile industry in near future. Meanwhile, increasing popularity of polyester as an alternative to cotton as a textile fabric further creates opportunities for digital textile printing equipment providers to expand their business. Attributing to such significant demand for digital textile printing technology, there is scope for manufacturers to enhance their business in time to come.

Many leading names like ColorJet India, Fortuna Colours & Prints Llp, Apsom Technologies, Kornit Digital, True Colors Group, Epson India, Jaysynth Dyestuff (India) Ltd., etc. are lined up with their new arrivals and eagerly awaiting the Show dates to launch their latest printers. Featuring continuous production and a wide range of printing capabilities, most of these new age digital textile printers work on minimal maintenance and come with easy cleaning options for smooth operation. All these activities clearly evince that overall textile printing technology market has positive growth prospects, riding on the back of the country’s burgeoning textile industry.

Companies like Arrow Digital, AT Inks, Britomatics, Cosmic Trends, DCC Print Vision Llp, E.I.DuPont India Pvt. Ltd. Electronics For Imaging India Pvt. Ltd. (Efi Optitex), Epson India, Fortuna Colours & Prints Llp, Ganpati Graphics, Grafica Flextronica, Green Printing Solution, Green Tech, Hi Tech Marketing, HP India Sales Pvt. Ltd., Jay Chemicals Industries Ltd., JN Arora & Co., Kamal Sales Corp., KNR Technology Company, Mac Printing Solutions, Mouvent, Negi Sign Systems & Supplies Co., Orange O Technology Pvt. Ltd., Somya Digital Technologies, Spintex Pvt. Ltd./Aura, Tanya Enterprises, Texzium International Pvt. Ltd./Wenli, Veekay Enterprises, & many more are coming up with their technological innovations to showcase their latest product range under the DIGITEX.
 
The extensive exhibit profile ranging from new printers and inks to upcoming techniques will explore new and exciting opportunities offered by digital printing for home furnishing & interior decoration, apparel & fashion and corporate interiors. On the display will be digital textile machinery, digital textile printing machines, dye sublimation process, screen printing machines, t-shirt printing machines, transfer printing process, digital textile printing chemicals, digital textile printing inks (disperse, reactive and pigment inks), heat transfer machines, sublimation paper, software & many more.

Moreover, it’s a great opportunity for digital printing companies, signage industry stakeholders, screen printing industry people from graphic arts industry, merchandisers and other industry players to interact with the leading digital printing technology suppliers and to witness the latest range and innovations in the sector. This is because following the advent of digital printing solution, the applications of fabric or textile is not limited only to the clothing and home furnishing, but has gone far beyond to include signage, flags, posters, back-lit, front-lit, etc. to bring forth a wholesome idea that where all digital textile printing technology can be used.

Points to be noted are numerous benefits of soft signage. Textile or soft signage presses are very eco-friendly, run over water-based inks with little to no odour and low power consumption. Soft signage facilitates customers save on shipping because of being much lighter in weight than other materials used in the signage and graphics industry. Also, fabric-printed signs fold up to create smaller packages, again decreasing shipping costs. But overall, the Show would be a win-win for business visitors as it has much more than focusing on digital printing technology, bringing entire value chain of garmenting and textile printing manufacturing solution under one roof.

Organised by the MEX Exhibitions Pvt. Ltd. in association with Messe Frankfurt India, Gartex Texprocess, this year, will have three more shows apart from the Digitex. These are namely, FABRIC & TRIMS SHOW: A focused area to source all embellishments & fabrics, DENIM SHOW: A zone that aims to bring together the denim supply chain under one roof, and INDIA LAUNDRY SHOW: An ideal platform offering a wide range of business and networking opportunities to manufacturers, suppliers and service providers in the laundry and dry-cleaning industries.

Additionally, there are a couple of focus areas i.e., EMBROIDERY ZONE highlighting the significant evolution that has been taking place in the invention of new technologies and machinery for embroidery. The top variants of embroidery machines, software & allied products will be highlighted in this dedicated segment. Another focus area is GARMENTING & APPAREL MACHINERY that would showcase technological developments in the Garment & Apparel Manufacturing Sector.

Broad exhibit categories at Gartex Texprocess 2019 include embroidery machines, cutting and sewing machines, fabrics & accessories, needles & threads, laundry & washing equipment, finishing equipment, laser cutting machines, digital textile printing machines, automation and software.

Source:

MEX Exhibitions Pvt. Ltd. / Messe Frankfurt

Fotos: (c) ITMA
25.06.2019

A MORE INTERNATIONAL ITMA 2019 SETS NEW RECORD WITH BIGGEST NUMBER OF EXHIBITORS

Since its launch in 1951, ITMA has enjoyed wide industry recognition as the world’s largest textile and garment technology exhibition. This year’s exhibition in Barcelona sees its reputation solidify further with the largest gathering of exhibitors in its history. The record number of exhibitors totaling 1,717 from 45 countries has set a new milestone.

Speaking at the press conference on the opening day of the 18th edition of the exhibition, Mr Fritz P. Mayer, President of the European Committee of Textile Machinery Manufacturers (CEMATEX), said: “The global economy is still facing challenges, accentuated by trade tensions and disruption. However, textile being the world’s oldest manufacturing industry has demonstrated its resilience over the years. 

Since its launch in 1951, ITMA has enjoyed wide industry recognition as the world’s largest textile and garment technology exhibition. This year’s exhibition in Barcelona sees its reputation solidify further with the largest gathering of exhibitors in its history. The record number of exhibitors totaling 1,717 from 45 countries has set a new milestone.

Speaking at the press conference on the opening day of the 18th edition of the exhibition, Mr Fritz P. Mayer, President of the European Committee of Textile Machinery Manufacturers (CEMATEX), said: “The global economy is still facing challenges, accentuated by trade tensions and disruption. However, textile being the world’s oldest manufacturing industry has demonstrated its resilience over the years. 

“This is also the spirit of our exhibitors who continually innovate and launch new technologies and solutions. We are glad that ITMA has been providing a reputable platform for textile machinery manufacturers to market their innovations. This has enabled us to record the largest number of exhibitors in ITMA’s history.”

The exhibits are showcased over 114,500 square metres of net exhibit space, a 9 per cent increase over the previous edition in 2015. The exhibition occupies all nine halls of the Gran Via venue, including the space under the linkway. To allow more companies to participate, many exhibitors were allocated lesser stand space than what they had originally applied for.  

Mr Charles Beauduin, Chairman of ITMA Services, organiser of ITMA 2019 enthused: “The exhibition would have been larger if we had not turned away applicants due to a lack of space. Unfortunately, we could not accommodate a wait-list of about 250 applicants who booked some 8,200 square metres.”

He added: “ITMA has also evolved into a more international exhibition with a rich diversity of technology offerings from both East and West. Almost half of the total number of exhibitors are from non CEMATEX countries. This augurs well for the development of ITMA into a definitive textile and garment platform for the industry.”

International participation
Of the total number of exhibitors, over half are from CEMATEX countries; the balance comprising companies from other parts of Europe, Asia, the Middle East and the Americas. Reflecting the international composition of the participants, the largest number of exhibitors are from Italy (364 exhibitors), China (276 exhibitors), Germany (222 exhibitors), India (169 exhibitors) and Turkey (164 exhibitors).

CEMATEX countries continue to occupy the largest exhibit space, taking up 65% of the total net exhibit space. Italy booked 26% of the space, followed by Germany which booked 18%. The top non-CEMATEX countries are: Turkey with 9%, China with 8%, and India with 5% of the space booked.

Product sectors
Visitors can expect to source a wide range of integrated solutions across the entire value chain in 19 exhibit sectors. Printing, which has seen many advances being made in the last few years, is an exciting growth sector. Chalking up a 38 per cent increase in the number of exhibitors compared with the previous exhibition, it is one of the top five sectors at ITMA 2019:

  • Finishing - 325 exhibitors
  • Spinning - 281 exhibitors
  • Weaving - 182 exhibitors
  • Printing - 157 exhibitors
  • Knitting - 136 exhibitors

Nonwoven and technical textiles due to their wide range of applications continue to be an important sector at ITMA 2019. Garment making, which has been impacted by digitalisation and fast fashion, is also making a bigger impact at ITMA.

Mr Mayer said, “We are extremely pleased to bring garment technology back in focus at ITMA. While ITMA has been traditionally strong in textile making technologies, we are glad that we are able to present garment making solutions from some of the world’s most renowned technology providers. There is an increase of 27 per cent in number of exhibitors as compared with ITMA 2015." Completing the entire value chain is the showcase on fibres, yarn and fabrics. The addition of innovative fabrics in the fibre and yarn chapter at ITMA further completes the sourcing experience for buyers.
 
Focus on innovation
The theme of ITMA 2019 is ‘Innovating the World of Textiles’. To support the innovation drive, CEMATEX has introduced the ITMA Innovation Lab. A new umbrella branding of a series of activities, the Lab includes the Research and Innovation Pavilion, ITMA Speakers Platform, ITMA Sustainable Innovation Award and Innovation Video Showcase. Speakers from the industry have been invited to share their perspectives and experiences at the Speakers Platform which will be held from 21 to 25 June. A finance forum was also held on 21 June.

Co-located events and industry engagement
To encourage the exchange of knowledge, collaboration and networking, several events are staged alongside ITMA 2019. The ITMA-EDANA Nonwovens Forum and Textile Colourant and Chemical Leaders Forum have met with overwhelming response and seats have been added. Similar strong response has also been received by partner events, including the Better Cotton Initiative Seminar, European Digital Textile Conference, TexSummit Global, Planet Textiles, SAC & ZDHC Manufacturer Forum and Texmeeting by TEXFOR.

“The series of co-located events is part of ITMA’s outreach programme to engage industry partners and to create an inclusive platform for the global textile and garment community. We have over 190 international, regional and local organisations lending their support to our exhibition,” Mr Mayer said. ITMA 2019 is held at Fira de Barcelona Gran Via venue till 26 June. The opening hours are from 10.00am to 6.00pm daily, except 26 June when the exhibition will end at 4.00pm.

About CEMATEX & ITMA
The European Committee of Textile Machinery Manufacturers (CEMATEX) comprises national textile machinery associations from Belgium, France, Germany, Italy, Netherlands, Spain, Sweden, Switzerland and the United Kingdom. It is the owner of ITMA and ITMA ASIA. Considered the ‘Olympics’ of textile machinery exhibitions, ITMA has a 68-year history of displaying the latest technology for every single work process of textile and garment making. It is held every four years in Europe.

 

More information:
ITMA 2019
Source:

CEMATEX & ITMA Services

TEXTILE INDUSTRY IN PAKISTAN MUST MODERNIZE Photo: OpenClipart-Vectors at Pixabay
26.03.2019

TEXTILE INDUSTRY IN PAKISTAN MUST MODERNIZE

  • The cultivation of cotton is to be expanded

Pakistan's textile industry has lost competitiveness. Investments in new textile technology are necessary. Exports of German machinery increase.

The textile industry is Pakistan's most important industrial sector. In Pakistan's fiscal year 2017/18 (July 1st 2017 to June 30th 2018), the textile industry accounted for 8.5 percent of gross domestic product. The sector accounted for about a quarter of the total industrial value added. It is by far the country's most important export sector. Textile exports accounted for 58 percent of total exports in 2017/18.

  • The cultivation of cotton is to be expanded

Pakistan's textile industry has lost competitiveness. Investments in new textile technology are necessary. Exports of German machinery increase.

The textile industry is Pakistan's most important industrial sector. In Pakistan's fiscal year 2017/18 (July 1st 2017 to June 30th 2018), the textile industry accounted for 8.5 percent of gross domestic product. The sector accounted for about a quarter of the total industrial value added. It is by far the country's most important export sector. Textile exports accounted for 58 percent of total exports in 2017/18.

However, the international competitiveness of the sector is currently declining. This trend should turn around. Prime Minister Imran Khan met with representatives of the textile industry at the end of January 2019. Economic policy aims to expand and modernize the textile industry. Production costs are to be reduced and productivity increased. In addition, quality improvements, production expansions and higher added value are necessary.

The textile industry's value chain begins with around 1,300 companies that are ginning, process and bale raw cotton. In addition to the demand for cotton, the demand for synthetic fibers is also increasing, although there are only three manufacturers of polyester fibers in Pakistan to date.

The number of spinning mills is estimated at 517 in 2017 and the number of weaving mills at 124 large and 425 medium-sized and small mills. Ten large and 625 medium-sized and small companies process fabrics. Towels were produced by about 400 companies, knitted fabrics by 2,500 companies. Clothing made of woven fabrics was supplied by 50 large factories and 2,500 medium-sized and small factories.

Export transactions stagnate
Pakistan's textile exports grew by 8.7 percent to USD 13.5 billion in 2017/18. This level was already reached in 2013/14 and 2014/15. Textile exports in the first seven months of fiscal year 2018/19 (July 18th to January 19th) increased slightly by 1.2 percent year-on-year to US$ 7.8 billion.

Pakistan: exports of yarn, fabrics and clothing (USD million) *)
Products 2013/14 2014/15 2015/16 2016/17 2017/18
Total 13,733 13,471 12,447 12,452 13,530
.Cotton yarn 1,997 1,849 1,265 1,244 1,372
.Cotton fabrics 2,770 2,453 2,214 2,136 2,204
.Towels 767 797 803 801 797
.Bed linen 2,138 2,103 2,020 2,136 2,261
.Clothing 1,906 2,095 2,195 2,319 2,579
.Knitted goods 2,294 2,406 2,364 2,361 2,720
.Other products 1,858 1,767 1,586 1,452 1,597

*) Fiscal years (July to June)

Sources: All Pakistan Textile Mills Association (APTMA); Pakistan Bureau of Statistics; Textile Commissioner's Organization

The All Pakistan Textile Mills Association (APTMA) aims to increase exports to USD 28 billion by 2023/24. This requires consistent state support and long-term export promotion, according to the association.

The leading foreign customer is the USA. Other important customers include the United Kingdom, Germany and Spain. In 2017 and 2018, Germany imported textile materials and goods worth EUR 1 billion from Pakistan.

Machine imports still declining
Imports of textile machinery in 2013/14 amounted still to USD 599 million. In the following three years it was USD 449 million (2014/15), USD 462 million (2015/16) and USD 557 million (2016/17). Imports are not currently showing an upward trend despite the need for modernization. According to the statistics authority, they fell by 42 per cent to USD 325 million in 2017/18. There are still no signs of a recovery in 2018/19 either.

Pakistan: Imports of selected textile machinery (USD million)
HS-Positions 2014 2015 2016 2017
84.45 Spinning machines etc. 230 162 162 246
84.46 Looms 84 73 107 90
84.47 Knitting machines etc. 70 84 65 75
84.48 Auxiliary machinery for
HS headings 84.44 to 84.47
85 70 77 82

Sources: Pakistan Bureau of Statistics, UN Comtrade

Business trip to the fifth largest customer of German spinning technology
According to calculations by the German Engineering Federation (VDMA), German textile machinery exports to Pakistan increased to EUR 53 million in 2017. The previous year's figure was EUR 48 million, EUR 39 million of which was attributable to spinning machines.

A business trip of German companies from the textile machinery and accessories sectors will take place to Karachi and Lahore from November 11th to 15th 2019. The Federal Ministry of Economics and Energy will promote and the company SBS Systems for Business Solution will organize the trip (contact: Thomas Nytsch, e-mail: thomasnytsch@sbs-business.com).

Cotton production to be strongly increased
The local cotton production is the base of the textile industry. After India, China and the USA, Pakistan is the fourth largest cotton producer, followed by Brazil and Uzbekistan. Without an increase in local crop yields, the growth of the textile industry is limited. Increased imports of cotton would further reduce the industry's struggling international competitiveness.

In an international comparison, the country is one of the cotton producers with the lowest yields per hectare. Australia, Turkey, China and Brazil form the leading group with about 1,600 to 1,700 kilograms per hectare. Pakistan only reaches 600 to 800 kilograms.

Pakistan: Cotton production
Year Cultivation area
(in hectares)
Production
(in 1,000 bales) 1)
Yield per hectare
(in kilograms)
2013/14 2,086 12,769 774
2014/15 2,961 13,960 802
2015/16 2,902 9,917 582
2016/17 2,489 10,671 730
2017/18 2,699 11,935 752
2018/19 2) 2,500 11,000 748

1) one bale = 170 kilograms, 2) Forecast
Source: Pakistan Bureau of Statistics; research by Germany Trade & Invest

The government has set a production target of around 15 million bales for 2019/20. APTMA believes an increase to 20 million bales is possible by 2023/24. The association assumes that there will be about 2,800 hectares of cultivated land and an increase in yields per hectare to 1,200 kilograms.

Problems with the supply of cotton

Baumwolle wird vor allem in den Provinzen Punjab und Sindh angebaut. Die Baumwollproduktion erreichte 2014/15 noch rund 14 Millionen Ballen. Die Ernte fiel 2015/16 auf unter 10 Millionen und lag 2017/18 bei 12 Millionen Ballen. Die Produktion ist 2018/19 wieder gesunken, ein Wert von etwa 11 Millionen Ballen wird prognostiziert. Als Gründe werden unter anderem Wassermangel, eine schlechte Qualität der Pflanzenschutzmittel und minderwertiges Saatgut genannt. Zudem sei die finanzielle und regulatorische Unterstützung der Regierung unzureichend, so Branchenvertreter.

The local supply could therefore no longer cover the annual cotton demand of the textile industry of 15 to 16 million bales in recent years. Textile manufacturers therefore imported cotton mainly from India and China, about 3 million to 4 million bales a year. However, imports from India have been stopped since February 2019. The background to this is the political tensions and recent military conflicts between the two states.

More information:
Pakistan Pakistan
Source:

Robert Espey, Germany Trade & Invest www.gtai.de

Photo: pasja1000 Pixabay
19.03.2019

SRI LANKA'S APPAREL AND TEXTILE EXPORTS RECEIVE A BOOST

  • Modernization of production facilities required

Thanks to the reactivated GSP import status of the European Union, Sri Lanka's textile and clothing industry is looking to the future with confidence and expects better sales opportunities abroad.

The textile and clothing industry is of macroeconomic importance for Sri Lanka. The sector accounted for almost 43 per cent of the country's total exports in 2018 and provides employment for nearly 350,000 workers in the formal sector and about twice as many in the informal sector. In total, this is about 33 percent of all jobs in the manufacturing industry. The majority of employees are women.

  • Modernization of production facilities required

Thanks to the reactivated GSP import status of the European Union, Sri Lanka's textile and clothing industry is looking to the future with confidence and expects better sales opportunities abroad.

The textile and clothing industry is of macroeconomic importance for Sri Lanka. The sector accounted for almost 43 per cent of the country's total exports in 2018 and provides employment for nearly 350,000 workers in the formal sector and about twice as many in the informal sector. In total, this is about 33 percent of all jobs in the manufacturing industry. The majority of employees are women.

The textile and clothing industry contribute around 6 percent to the gross domestic product (GDP). "In view of the development of other sectors, it is very unlikely that another industry will reach this level of performance in the short to medium term," Jeevani Siriwardena, head of the Export Development Board (EDB), said in an interview with Germany Trade and Invest. The textile and clothing industry will continue to be an important sector for the Sri Lankan economy.

Short to medium-term prospects are good
On May 18th 2017, the European Union (EU) reactivated the Generalized Scheme of Preferences Plus (GSP+) status for Sri Lanka after a seven-year time-out. This means that when goods are exported to the EU, the island state is exempted from customs duties on more than 66 percent of customs tariff lines. "Without GSP status, Sri Lanka's export losses are said to have cost around 32 billion between 2010 and 2017," stressed Ravindi Ranaraja, Deputy Head of the Export Service Division of EDB, in a GTAI interview. In particular, the strongly export-oriented clothing and textile industry will benefit from the regained GSP status. Sri Lanka's textile and clothing industry is looking to the future with confidence and also expects better sales opportunities abroad.

Sri Lanka's textile and clothing exports to the EU and Germany in 2018
(in USD million; change year-on-year in %)  
HS-Code Definition
 
EU
 
Change
 
Germany *) Change
 
61 Articles of apparel and clothing accessories, knitted or crocheted 1,177 0.7 232.55 9.6
62 Garments and clothing accessories, not knitted or crocheted 874 7.6 151.59 18.1
63 Other made-up textile articles; sets worn clothing and used textile articles 52 18.2 7.8 13.5
Total   2,103 3.9 391.92 12.8

*) Estimation
Sources: Sri Lanka Apparel Exporters Association; press releases; calculations by Germany Trade & Invest; Destatis, February 2019

Positive impulses are already visible. According to the latest foreign trade figures available, Sri Lanka was able to increase its total exports of textiles and clothing (HS codes 61, 62 and 63) by almost 4.8 percent to approximately USD 5 billion in 2018. Exports to the EU increased by 3.9 percent to USD 2.1 billion. Exports to Germany were able to recover a plus of 12.8 percent.

It is not yet certain that Sri Lanka will be able to make up for the losses of the past. In the meantime, countries such as Bangladesh, India and Pakistan, which have already enjoyed tariff concessions in foreign trade with the EU for the entire current decade, have passed by the island state. Bangladesh in particular, recorded a strong increase in its clothing and textile exports compared with Sri Lanka..

Sri Lanka textile and clothing exports 2018 (HS codes 61, 62, 63)
Country In USD million 1)
China 172.4
Vietnam 36.0
Bangladesh 32.9
India 20.9
Indonesia 2) 14.0

1) Estimation; 2) Forecast
Sources: Press Releases; Calculations Germany Trade & Invest, February 2019

Sri Lanka focuses on higher quality products
Numerous domestic textile producers are switching to the production of higher-quality garments in order to maintain their competitiveness. "In Sri Lanka, the focus is not on mass but rather on higher quality products," confirmed M. Raghuram, Chief Executive Officer of Brandix, one of the country's largest clothing companies, in an interview with GTAI. The island state concentrates on the production of just a few product categories such as underwear, sportswear or lounge wear..

Sri Lanka has become a location for the manufacture of high-quality garments. This is also confirmed by the World Bank. In its 2016 study "Stitches to Riches" (website), it found that Sri Lanka outperformed its competitors India, Pakistan and Bangladesh in terms of quality, delivery times, reliability and sustainable social responsibility.

Sri Lanka serves fastidious international companies such as Victoria Secrets, GAP, Nike or Marks and Spencer. According to expert estimates, the production of the top 10 Sri Lankan textile and clothing companies accounts for around 85 percent of the industry's total exports.

The ambitious goal is to increase the garment industry's export revenues to USD 8 billion by 2025, which will require an annual growth of 6 percent. For this Sri Lanka must improve capacity, technology and resource problems. "It is becoming more and more difficult to find suitable personnel. For many young people working in the garment and textile industry in Sri Lanka is simply unattractive”, Nilanthi Sivapragasam, Chief Financial Officer of the conglomerate Aitkence Spence, told GTAI. The training of the workforce is also a major challenge. "Training new employees is very time-consuming and labor-intensive," confirms Sivapragasam.

Imports of German machinery decline
In addition, Sri Lanka's textile companies must modernize their machinery and expand their capacities in order to further increase productivity and added value. Accordingly, there is a great demand for technically sophisticated textile machines in the country. This offers good opportunities and chances for machine suppliers. According to experts, the demand for textile printing and dyeing machines, stenter frames and finishing technology will develop particularly dynamically in the future.
 
In Sri Lanka itself only relatively simple machines are being produced. High-end technology is mainly imported. China is the most important supplier of textile machinery, accounting for about one third of all imports. India has also been able to significantly increase its machine exports to Sri Lanka in recent years. In 2017, India achieved exports of USD 6.3 million, an increase of 46.7 percent, compared with exports of USD 2.6 million in 2010.

German machine exports suffered enormous losses. Sri Lanka's imports of textile machinery from Germany amounted to USD 16.5 million in 2017, a decrease of 54.2 percent. Over the past years, Germany has lost share of its deliveries. According to industry experts, this trend will continue: Made in Germany stands for quality and continues to be very popular in Sri Lanka; however, German machine manufacturers are often unable to keep up with the low-cost products from China or India.

Sri Lanka's imports of textile and clothing machinery
(SITC 724; USD million) 
Country 2016 2017 Change
China 56.3 51.8 -8.0
Japan 26.6 18.3 -31.1
Germany 36.0 16.5 -54.2
Singapore 13.6 14.5 -6.8
India 4.3 6.3 46.7
Total 192.8 155.3 -19.5

Source: UN Comtrade, March 2019

Contact addresses
Title Internet address Remark
Germany Trade & Invest http://www.gtai.de/srilanka Foreign trade information for the German export industry
AHK Sri Lanka http://www.srilanka.ahk.de Contact point for German companies
Sri Lanka Export Development Board http://www.srilankabusiness.com/edb State organization responsible for the development and promotion of exports in Sri Lanka. 

 

More information:
Sri Lanka
Source:

Heena Nazir, Germany Trade & Invest www.gtai.de

Photo: Pixabay
26.02.2019

TURKEY REMAINS AN IMPORTANT MARKET FOR GERMAN TEXTILE MACHINERY

  • Competition from the Far East increases modernization pressure

Turkey is an important market for German manufacturers of textile machinery. However, the textile and clothing industry has a problem: exports have been stagnating for years.

  • Competition from the Far East increases modernization pressure

Turkey is an important market for German manufacturers of textile machinery. However, the textile and clothing industry has a problem: exports have been stagnating for years.

The Turkish textile industry is broadly based: Companies manufacture all intermediate products in the country, including yarns, fibers and fabrics. Production along the entire textile value chain means great sales potential for German suppliers of textile machinery. In fact, Turkey is the second most important export market for German spinning, weaving, textile finishing machines and the like after China, as it can be seen from the figures of the Federal Statistical Office Destatis.Nevertheless, the sector is not a growth market. Apart from a few outliers upwards and downwards, Turkish textile machinery imports have remained at the same level for several years. This is due to the fact that Turkish exports of textiles and clothing are also stagnating. Particularly noticeable: companies benefited only marginally from the weak lira last year.

Textile and apparel industry benefits little from weak lira
Year Turkish exports of clothing and textiles (in US$ billion) Annual change (in %)
2015 26.3 -10.3
2016 26.1 -0.6
2017 26.7 2.1
2018 27.7 3.6

Source: Turkish Statistical Office TÜIK (http://www.tuik.gov.tr)

Increasing pressure from the Far East
Turkish clothing manufacturers are increasingly feeling the effects of competition from the Far East. Despite the high number of informal workers, wages in Turkey have risen to such an extent that they cannot keep up with the low wages of Asian sewing factories. The geographical advantage of Turkish companies over Chinese competitors is at stake because of the new Silk Road and the development of faster transport routes. Free trade agreements that the European Union is currently negotiating with India and South Korea will further increase the pressure on Turkish producers.

Slump in 3rd quarter 2018
In addition, there is the difficult economic situation in the country: the Turkish lira reached a record low, especially in the months of August to October 2018, and commercial banks raised their lending rates. As a result, financing costs for machinery from abroad suddenly increased, orders from Turkey failed to materialize, especially in the third quarter. The German knitting machine manufacturer Mayer & Cie has also noticed this, as Stefan Bühler, who is responsible for the Turkish business, reports: "In the last three months of 2018, the market was virtually dead. In the meantime, however, the industry is gradually recovering.

Akar Textile plans new factory
Announcements about new investments cannot yet be heard at this time. As early as June 2018, Akar Textile (http://www.akartextile.com) announced that it would build a new factory for 47 million Turkish lira (TL) in the municipality of Savur in southeastern Turkey. 3,000 employees are there to become employed. Akar Textile produces for companies such as C&A, Mango and H&M. Only a few months after the announcement of the project, the economic crisis in Turkey deepened in September. The extent to which the turbulence has affected the project implementation is not known.

Technical textiles as a driving force for growth
Far Eastern competition is increasing the pressure to modernize the Turkish textile industry. In the future, industry will have to compete primarily with high-quality products. Growth impulses are currently coming from the sector of technical textiles. According to industry reports, more than 200 small and medium-sized enterprises are already producing technical textiles and nonwovens in Turkey. These textiles and fabrics are being used in the automotive, packaging and cosmetics industries.

In June 2018, the Turkish METYX Group (http://www.metyx.com) invested in its machinery parc. The company is manufacturing technical textiles and has ordered a line of warp knitting machines from the German textile machine manufacturer Karl Mayer. The manufacturer of composite materials is thus increasing its capacity by 12,000 tons of glass and carbon fibers. In recent years, more and more research and development centers have emerged to promote the necessary technology transfer in the industry. The Institute for Technical Textiles at RWTH Aachen University (ITA) founded a research center in Istanbul in October 2016. In the Teknosab industrial zone in Bursa the BUTEKOM research and development center for textile technology was established in 2008. The institute offers training as well as research and development cooperation to and with companies.

However, many medium-sized textile companies often lack the money to invest in modern machinery. The short planning horizon makes an access to research and development more difficult. As a member of the management board of the German-Turkish Chamber of Industry and Commerce, Frank Kaiser has been observing the Turkish business landscape for eight years. He points out that the textile manufacturers, like other medium-sized companies in the country too, often plan in short terms. "In view of the volatile business environment, this is rational," Kaiser explains.

Turkish imports of textile machinery and exchange rate comparison  1)
Year Import from Germany
(in USD million)
Total imports
(in USD million)
Exchange rate
(1 US$ = ?TL)
2009 143 505 1.55
2011 521 1,851 1.67
2013 619 2,211 1.90
2015 382 1,398 2.72
2017 447 1,478 3.65
2018 1) 2) 490 1,774 4.81

1) the slump in the 3rd quarter is not yet visible in the annual figures for 2018; it will not become noticeable until 2019
Sources: UN-Comtrade, TurkStat 2), Bundesbank

 

 

 

 

PIXABAY
27.11.2018

EGYPT'S TEXTILE AND CLOTHING SECTOR FACING MODERNIZATION

  • State enterprises get better equipment

Cairo (GTAI) - The Egyptian government plans to modernize the textile sector and private companies are investing in new locations. Increasing machine imports and clothing exports are expected.

In the Egyptian textile and clothing industry, the signs are pointing to expansion and modernization. Local media reported on a number of private and public investment projects. According to the newspaper Al Gomhouria, a Chinese producer in the Suez Canal economic zone is planning the world's largest textile factory for USD 6 billion. The Chinese companies TIDA and Shoon Dong Roy want to build a clothing factory for 800 million USD. Sino-Egypt Minkai is planning to build a textile industry complex for around USD 750 million.

  • State enterprises get better equipment

Cairo (GTAI) - The Egyptian government plans to modernize the textile sector and private companies are investing in new locations. Increasing machine imports and clothing exports are expected.

In the Egyptian textile and clothing industry, the signs are pointing to expansion and modernization. Local media reported on a number of private and public investment projects. According to the newspaper Al Gomhouria, a Chinese producer in the Suez Canal economic zone is planning the world's largest textile factory for USD 6 billion. The Chinese companies TIDA and Shoon Dong Roy want to build a clothing factory for 800 million USD. Sino-Egypt Minkai is planning to build a textile industry complex for around USD 750 million.

The Egyptian state also wants to strengthen the textile and clothing production. In November 2018, the Minister of State Enterprise Hisham Tawfiq negotiated an extensive restructuring of the Cotton & Textile Holding Company with Werner International of the USA. According to press reports, the properties of 14 of the 25 cotton ginning plants should be sold. The ministry estimates the value at USD 1.5 billion. This appropriation is intended to cover the repair of machinery and the import of new equipment for the eleven remaining companies.

A free zone for textile production will also be created in Minya on the initiative of the state. This industrial zone is to be built on an area of 2.2 million square metres: The General Authority for Free Zones and Investment intends to launch the project before the end of 2018.

In autumn 2018, the Cotton & Textiles Industries Holding Company and Marubeni of Japan signed a letter of intent. This relates to the construction of a new textile factory in Kafr El Sheikh. A reduced loan from the Japan Bank for International Cooperation secures the financing of the project.

Import demand for textile and clothing machinery expected to increase
The planned projects are expected to lead to a further increase of a demand of imports. Like other types of equipment, the vast majority of textile and clothing machinery is imported into Egypt. In 2017 the German share of deliveries fell by 8.4 percentage points to an year-on-year comparison to 12 percent. However, this reduction is put into a perspective by the fact that the reference year 2016 was a positive outlier. In 2015, the German share was still 15.8 percent.

Imports of textile and clothing machinery to Egypt (in USD 1,000)
HS-Category 2016 Therof from Germany 2017 Therof from Germany
8444 4,481 2,025 5,554 n.v.
8445 26,105 5,429 32,660 4,807
8446 23,591 13,346 26,170 4,493
8447 15,713 3,052 22,032 4,493
8448 20.574 3,365 18,013 2,698
8449 299 0 1,725 0.4
8451 36,512 2,334 37,887 3,511
8452 23,186 1,698 29,633 1,309
8453 3,678 137 9,892 155
Total 154,139 31,386 183,566 22,028.4

n.a. = not available
Source: Comtrade

Egyptian textile and clothing companies often produce with a lot of manual work and partly with very outdated machines. The government's aim is to create as many jobs as possible due to the continued population growth. On the other hand, a more automated and modern production would allow more complex products. These could be sold at a higher profit, but would also require less human labor.

Important role of the sector companies for the Egyptian economy
The textile and clothing companies in Egypt represent a significant and labor-intensive industry. Local and imported fibers are being processed in the country and there is a broad base of spinning mills, weaving mills, dyeing houses and manufacturers of clothing and home textiles. It is estimated that the companies employ between 1 million and 1.2 million people. A regional focus is Mahala El Kubra. State enterprises are strongly represented in the textile sector, while the private sector plays a greater role in the clothing sector. About 90 percent of the spinning and weaving mills are state-owned.

According to the Readymade Garments Export Council (RMGEC), the garment industry accounts for 3 percent of the country's gross domestic product, 15 percent of exports (excluding oil), and one of three industrial jobs in the country. From January to the end of August 2018, clothing exports to the RMGEC totaled USD 1,040 million. In the same period of 2017, exports amounted to only US$ 980 million.

Egyptian exports of textiles and clothing (selection; in USD million;
change in %)
HS-Category 2016 2017 Change 2017 / 2016
57 303.5 313.9 3.4
60 35.7 44.3 24.1
61 388.0 466.0 20.1
62 756.6 910.7 20.4
63 227.2 231.1 1.7
Total 1,711.0 1,966.0 14.9

Source: UN Comtrade

The Qualified Industrial Zones (QIZ) play a special role. These are special zones with Israeli added value, which are fixed during production, and the products enjoy customs advantages when exported to the USA. Since 2005, the QIZ system has provided more private investments in the garment sector. Jeans and other clothing for well-known brands are delivered to the USA from the 25 zones.
Egyptian manufacturers are also generally not always recognizable as such, as they often manufacture for major international brands. Middle East Eye names Calvin Klein, Decathlon, Tommy Hilfiger and Zara as examples. In November 2017 Dice Sport and Casual Wear agreed to supply Levi Strauss & Co. with children's clothing.

The US company Disney even purchases 33 types of products from Egypt. Since 2017, Egypt has been cooperating with the International Labor Organization ILO as part of the Better Work Program. Working conditions are to be improved in 30 clothing factories. According to media reports, for Disney these measures were a reason to extend the licenses of the Egyptian suppliers until December 2019.

Currency effect improves competitiveness
The labor-intensive production benefited from the currency devaluation in 2016. According to a report by the news portal Middle East Eye, Egypt has at least 100 USD monthly salary for workers and is about at the same level as India or Bangladesh and at about 50 of percent Chinese salaries. In addition, prompt and fast deliveries to Europe and the USA are possible.

On the other hand, the companies are dependent on foreign supplies, which became more expensive. In Egypt especially soft and high-quality long staple cotton is cultivated and exported. Domestic producers, on the other hand, mainly use short-staple cotton and other foreign fibers as raw materials. The RMGEC complained about rising production costs in October 2018. Wages, electricity, water, natural gas, transports and more expensive imports of raw materials contributed to this development.


Further information on Egypt can be found at http://www.gtai.de

 

More information:
GTAI Ägypten
Source:

Oliver Idem, Germany Trade & Invest www.gtai.de

20.11.2018

CHINA'S CLOTHING COMPANIESS REPOSITION THEMSELVES

  • AUTOMATION AND STRONGER FOCUS ON THE DOMESTIC MARKET

Beijing (GTAI) - The Chinese apparel industry is repositioning itself. Increased wage costs force more automation, more customers demanding more quality.
Nowhere else in the world so much clothing is being produced as in China. According to the sector portal http://www.ask.com, alone 22.9 billion pairs of socks were being produced in 2017. This was 4.8 percent more than in the previous year, and the production of jeans amounted to more than 0.6 billion pieces according to information from http://www.chyxx.com, an increase of 5.0 percent.

  • AUTOMATION AND STRONGER FOCUS ON THE DOMESTIC MARKET

Beijing (GTAI) - The Chinese apparel industry is repositioning itself. Increased wage costs force more automation, more customers demanding more quality.
Nowhere else in the world so much clothing is being produced as in China. According to the sector portal http://www.ask.com, alone 22.9 billion pairs of socks were being produced in 2017. This was 4.8 percent more than in the previous year, and the production of jeans amounted to more than 0.6 billion pieces according to information from http://www.chyxx.com, an increase of 5.0 percent.
China is not only the world's largest production nation, but also by far the world's largest export nation in the sector. However, countries such as India, Vietnam, Bangladesh and Cambodia are catching up enormously due to lower wages. As a result, China - measured by its share of world clothing exports - has lost around 5.5 percentage points since 2013, down to only 32.4% in 2017.

China's share of world clothing exports 1) (in USD billion; shares in %)
  2008 2013 2015 2017
World Export 380 468 471 486
China Export 120 177 175 157
China's share 31.6 37.9 37.1 32.4

1) SITC Pos.84; 2) Partially estimated on the basis of information provided by the ITC
Source: UN Comtrade, GTAI calculation.

By contrast, Bangladesh (+3.7 points), Vietnam (+2.0 points) and Cambodia (+1.3 points) in particular recorded gains in the period from 2013 to 2017. In absolute terms, Chinese apparel exports fell by 15.6% to USD 157 billion since the record year of 2014 (USD187 billion). No improvement is in sight as exports are stagnating in 2018.

Export of clothing 1) by country (in USD million; shares in %)
  2008 Share 2013 Share 2017 Share
World Export 380,000 100.0 468,000 100.0 486,000 100.0
China 120,405 31.6 177,435 37.9 157,464 32.4
ASEAN3) 29,793 7.8 42,123 9.0 61,441 12.6
Vietnam 8,724 2.3 17,230 3.7 27,930 5.7
Kambodscha 3,014 0.8 4,832 1.0 11,250 2.3
Bangladesch 12,035 3.2 19,679 4.2 38,460 7.9
India 10,968 2.9 16,843 3.6 18,313 4.0
Germany 18,183 4.8 19,178 4.1 22,034 4.6

1) SITC Pos. 84; 2) partly estimated on the basis of ITC data; 3) excluding Laos and Brunei
Sources: UN-Comtrade; ITC; GTAI calculation

Rising wage costs as investment driver
Due to rising personnel costs throughout the country, manufacturers were and are under considerable cost pressure. With an average hourly wage for a Chinese worker of the equivalent of around USD 5.2 (2017), China has not only left classic emerging markets such as Thailand (USD 2.3) or Mexico (USD 3.9) behind - not to mention India with USD 0.8 - but is already approaching individual European countries (e.g. Greece 2016: USD 6.0).


Companies have met and continue to meet this challenge through increased automation. Between 2015 (9.1 million) and 2017 (7.8 million) alone, the workforce of the textile and clothing industry shrank by 14.3 percent - according to the Chinese statistical office. More and better machines make it possible to say goodbye to the previous labor-intensive production - and thus lower cost pressure with more precise and faster execution. Imports of textile machinery are also benefiting from this. These rose in 2017 by a whopping 34.1 percent year-on-year to nearly USD 3.9 billion.


Germany no longer number one textile machinery supplier
Although Germany lost its position as most important supplier country for textile machinery to Japan, it was still able to increase its deliveries by 28.3 percent to USD 1.1 billion. This corresponded to a supply share of 28.3 percent. Japanese manufacturers achieved a ratio of 30.0 percent with just under USD 1.2 billion (+52.8 percent). Competition from Italy came to only 11.5 percent. The good performance is remarkable due to the fact that a number of German textile machine manufacturers have invested heavily in recent years in the region in order to be able to meet the wishes of Chinese customers more effectively.

China's textile machinery imports *) by selected countries (in USD million; year-on-year change and 2017 shares in %)
  2015 2016 2017 Change Shares
Total 3,354 2,907 3,897 34.1 100.0
including          
Japan 728 765 1,169 52.8 30.0
Germany 1,219 851 1,101 29.4 28.3
Italy 415 347 448 29.1 11.5
Taiwan 206 187 203 8.6 5.2
Belgium 134 124 173 4.0 4.4
Switzerland 104 111 126 13.5 3.2

*) SITC-Pos. 724
Source: UN-Comtrade; GTAI calculation

Due to the high pressure to modernization Chinese textile machinery imports in the first seven months of 2018 increased by almost 15 percent compared to the previous period. German machine manufacturers in particular benefited from this development, with deliveries increasing by 30 percent in the same period. As Japanese exports of textile machinery to China stagnated at the same time, German manufacturers are likely to take the lead again in 2018.
As the garment exports come under such severe pressure, the industry is now increasingly geared towards the local market. Whereas ten years ago about half of the value of production was exported, today it is only about a third. In fact, the Chinese spent an average of around 4.8 percent of their disposable income or 1,238 Renminbi (RMB; around 183 US dollars; 1 USD = 6.7531 RMB, annual mean rate of 2017) on clothing in 2017, according to the Chinese Statistical Office. With an average disposable annual income of 25,974 RMB and a population of 1.39 billion, this translates into a market volume of approximately USD 255 billion.

China's consumers demand quality and design
This makes the Chinese clothing market one of the largest in the world - and one that is becoming increasingly diversified. Local offerings range from the cheapest mass-produced goods, qualitatively and visually appealing products in the mid-price segment up to luxury and haute couture. Much has changed in the upper price segment in particular. "In the past, the Chinese exported the best qualities, but today they keep them for themselves," says a British sourcing expert who has been working in the Kashmir business for decades, describing the development.

In general, Chinese consumer demand is becoming increasingly sophisticated and differentiated. In addition to the tendency towards recognized brands, an increasing individualization of consumption can also be observed. The question is what fits well, pleases and is also somehow "special". "People in the North used to buy cashmere clothes because they warmed well," explains Cheng Xudong, president of the private Dongrong Group. The design was of secondary importance - and accordingly most of the pieces were "old-fashioned".

"Today, cashmere clothes also look very good," Cheng adds. "That's why it's bought not only in the north, but also in the more southern parts of the country." In general, the middle class in particular is looking for a high-quality lifestyle - and clothing is a part of it. The entrepreneur is convinced that if the textile and clothing industry succeeds in adapting to the higher quality demands of local customers through a technical upgrade and improved design, then the industry will continue to do well in the future.

Additional information
Further information on the economic situation, the sectors, business practice, law, customs, tenders and development projects in China can be found at http://www.gtai.de/china The website http://www.gtai.de/asien-pazifik provides an overview of various topics in the region.

 

More information:
China Sampe China GTAI
Source:

Stefanie Schmitt, Germany Trade & Invest www.gtai.de

Indien fördert die Textilverarbeitung Photo: Pixabay
23.10.2018

INDIA PROMOTES TEXTILE PROCESSING

  • Integrated industrial parks necessary

New Delhi (GTAI) – The Indian textile sector is not only important for bringing foreign currency into the country, but also because of its role as an employer. The formation of new clusters is now getting supported by the government.

India, as one of the leading global producers not only of cotton, but also of wool, jute and silk, has a historic tradition in converting raw materials. Accordingly, India’s industry concerning spinning and weaving of fabric is broadly positioned, while contributing 14% of India's gross domestic product.

  • Integrated industrial parks necessary

New Delhi (GTAI) – The Indian textile sector is not only important for bringing foreign currency into the country, but also because of its role as an employer. The formation of new clusters is now getting supported by the government.

India, as one of the leading global producers not only of cotton, but also of wool, jute and silk, has a historic tradition in converting raw materials. Accordingly, India’s industry concerning spinning and weaving of fabric is broadly positioned, while contributing 14% of India's gross domestic product.

Even though the sector mostly consists of small enterprises, some clusters emerged. The textile industry can mainly be found in the federal states of Gujarat, West Bengal, Andhra Pradesh and Tamil Nudo.     
A more detailed structure is drawn by Sanjay K Jain, chairman of the textile Association “Confederation of Indian Textile Industry in an interview with Germany Trade & Invest: Knitwear clusters are found in Tirupur, Tamil Nadu, Kolkata, West Bengal, Ludhiana, and Kanpur. There are weaving centers in Ichankaranji and Bhiwandi (both Maharashtra), Erode (Tamil Nadu), Surat (Gujarat), and Bhilwara (Rajasthan). For ready-to-wear a cluster in Panipat (Haryana) and for the production of shirts and trousers has formed a cluster in Bangalore (Karnataka).
 
The state subsidy agency India Brand Equity Foundation (IBEF) recognizes four industrial centers – also according to the regional availability of raw materials. In the north (Kashmir, Ludhiana and Panipat) about 80 percent the production of woolen goods are concentrated. In the west (Ahmedabad, Mumbai, Surat, Raijkot, Indore and Vadodara) is the focus of the cotton industry. Hosiery (Tirupur, Coimbatore and Madurai) and silk products (Bengaluru, Mysore and Chennai) have their strengths in the South. The east of the country is focused on jute goods (Bihar and West Bengal). But also wool (Uttar Pradesh) and cotton goods (West Bengal) are represented. In addition, ac-cording to the IBEF, India has seven export-oriented Special Economic Zones for Textiles and Clothing in mid-2018.

A handicap for the textile industry is the missing size. For example, most low-capacity sites are scattered across the country. The construction of large integrated industrial parks is necessary. The various states and state institutions are also trying to promote new textile clusters.

The central government budget will provide ap-proximately US $ 4 million for the Scheme for Integrated Textile Parks (SITP) program in the fiscal year 2018/19 (April 1 to March 31). There are currently 47 projects in this field. The pro-gram intends the further development of such settlements with a common infrastructure.

More information:
Indien
Source:

Rainer Jaensch, Germany Trade & Invest www.gtai.de

INDIA'S GOVERNMENT SUPPORTS TEXTILE INDUSTRY Photo: Pixabay
11.09.2018

INDIA'S GOVERNMENT SUPPORTS TEXTILE INDUSTRY

  • Clothing exports are declining 

New Delhi (GTAI) - Structural weaknesses and fiscal reforms are affecting the Indian textile industry. Modernization and diversification are necessary. For this where support measures will come into force.

  • Clothing exports are declining 

New Delhi (GTAI) - Structural weaknesses and fiscal reforms are affecting the Indian textile industry. Modernization and diversification are necessary. For this where support measures will come into force.

In the 2016/17 fiscal year (April 1st to March 31st), India's government initiated a number of fundamental reforms such as the introduction of the nationwide Goods and Services Tax (GST) and a partial currency devaluation. These measures are intended to advance the economy as a whole in the medium to long term, but have led to uncertainty and difficulties in individual sectors, including the textile industry. Added to this are high cotton prices. The government is now trying to help the industry with individual measures. It remains to be seen whether these will be sufficient and lead to a sustained improvement. Finally, there are structural weaknesses which are also slowing down the growth of the Industry.

"The by the introduction of GST caused dent and monetary depreciation has now been overcome. However, the structural problems remain, so that no fundamental changes in the textile industry are to be expected", according to the assessment of a German supplier with many years of experience in India in talks with Germany Trade & Invest (GTAI).

Government launches aid measures
However, some government measures should provide relief. At the beginning of August 2018, import duties on 328 textile products, especially fabrics and nonwovens, were increased from around 5 to 10 percent to up to 20 percent. Also, at the beginning of the month, the Executive Board introduced four bills to amend the general VAT Act introduced on July 1st 2017. This should make refunds, for example of taxes on intermediate products, easier and faster. The introduction of GST and the delays in reimbursement have put particular pressure on the liquidity of small and medium-sized companies, which make up the bulk of textile companies. For example, the denim industry temporarily had to take 25 to 30 percent of its capacity out of production after the tax introduction.

 Also, the Ministry of Textiles wants to strengthen the to it entrusted weakening industry. At the beginning of August 2018, for example, it added changes to the Technology Upgradation Funds Scheme (TUFS), which has been in existence since 1999. This now expanded technology promotion program allows cooperative banks to provide financing to textile companies for technological improvements. They also become accessible for liability partnerships. Of the approximately USD 1.1 billion, that the central government budget is holding for the textile industry in the fiscal year 2018/19, one third, 14 percent more than in the previous year, are intended for the TUFS. Manufacturers of synthetic fibers and the clothing industry in particular are likely to benefit from this, according to industry sources.

The existence of an own Ministry of Textiles shows how important this industry is for India, not only as a source of foreign exchange, but also as an employer. The entire sector, from spinning mills, weaving mills to clothing and other finished goods, contributed around 14 percent to value creation in the manufacturing industry and 13 percent to foreign exchange revenues in 2017, and employs directly 40 million and indirectly 60 million workers.

As one of the world's leading producers of cotton, jute and silk, India has comparative advantages in the textile sector and can look back on a long tradition in processing. Accordingly, cotton is the main raw material in yarn and fabric production. After all, 5.7 billion tons of yarn were spun in 2016/17, achieving an annual average increase of 3.1 percent between 2011 and 2017. The weaving mills processed 63.5 billion square meters of fabric in 2016/17, after 61.7 billion in 2011. The proportion of cotton fabrics rose from 51 to 61 percent in 2011 to 2017. The remaining part is accounted for approximately equally by synthetic and blended fabrics.

 
Production and export growth come to a halt Based on the previously strong growth the government is optimistic. According to forecasts by the Ministry of Textile, India's textile and clothing industry is expected to more than double its sales between 2015 and 2021. Exports are expected to increase from USD 35 billion to USD 82 billion, after doubling in the period from 2006 to 2014 from USD 17.6 billion to USD 37.6 billion. After that, however, they stagnated and, at USD 35 billion in 2017/18 and missed the by the government set target by USD 10 billion. The production of textiles and clothing declined from 2015 to 2017. It is unlikely to improve in 2018.

Textile and clothing industry in India 1)
  2015/16
 
2016/17 2)  2017/18 2)
Export of textiles and textiles products USD in USD billion 18.1 18.2 18.7
Export of clothing 17.0 17.4 16.7
Import of yarn, fabrics, made-ups in USD billion 1.7 1.5 n.a.
Change of production of textiles in % -0.2 -3.2 n.a.
Change of production of non-knitted clothing in % -3.6 -3.3 n.a.


1) Financial years from 1 April to 31 March; 2) Provisional data for 2016/17 and 2017/18
Source: Statistical Office India
     

Clothing industry needs to modernize 
India's textile industry has cost advantages over industrialized countries and advanced emerging countries such as China. Smaller developing countries, however, have become well-known competitors in the meantime and have partly surpassed India in terms of clothing. So Bangladesh and Vietnam exported more clothing than India. In addition there is growing competition from other low-wage countries such as Cambodia, Sri Lanka and Indonesia. Some of these countries have free trade agreements with the EU, while India has difficulties in negotiating them. The smaller competitors have also geared their clothing industry to exports and modernized it accordingly. After all, they do not have significant local markets. The Indian textile manufacturers are different: If there is not enough quality for export, the domestic market, which has a population of 1.3 billion inhabitants and is growing strongly, is still there, industry representatives explain to GTAI.

India's apparel industry therefore still has a considerable potential for modernization and requires new production technologies, particularly to improve operating efficiency. Other structural weaknesses include strong wage increases with insufficient productivity growth and a shortage of well-trained skilled workers. Other disadvantages are the fragmentation of the clothing industry - many companies lack size - and the lack of adaptation to global fashion trends. While the fashion world is more prone to fiber mixed fabrics, the Indian clothing is not yet following this trend. There is a lack of product diversification.

The spinning and weaving sector looks more modern. Industry experts attest to it a leading international position in terms of size, technology, productivity, quality and price. This is also evident when importing machines. India was the most important export market for German spinning machines to China in 2017 and the fifth largest market for weaving machines, according to the Textile Machinery Association of the German Engineering Federation (VDMA). In textile finishing machinery, India does not rank among the top six export markets, but its competitor Bangladesh does.

Double-digit growth in foreign direct Investment 
Foreign investments in the Indian textile industry are welcome and 100 percent foundations by foreign companies are welcome. On promotional trips to countries such as Japan, Germany, Italy and France, India is actively attracting investors and has not been unsuccessful. The inflow of foreign direct investment into the textile sector, including dyed and printed textiles, amounted to USD 2.7 billion between April 2000 and September 2017. Cumulative investments increased by an annual average of 17.3 percent between 2010 and 2017. However, the bulk of the investment is being stemmed by national Indians. Total investments in India's textile sector from June 2017 to May 2018 amounted to USD 4.2 Billion.

Contact Details
Name Internet Remark
Germany Trade & Invest http://www.gtai.de/indien Foreign information for the German Export Business
AHK Indien http://www.indien.ahk.de Contact for German companies
Ministry of Textiles http://www.texmin.nic.in Ministry
Office of Textile Commissioner http://www.txcindia.gov.in Government 
Confederation of Indian Textile Industry http://www.citiindia.com Textile Association
Textile Association India http://www.textileassociationindia.org Textile Association India
The Clothing Manufacturers Association of India http://www.cmai.in Clothing Association


    

More information:
India Bangladesh(7621)
Source:

Rainer Jaensch, Germany Trade & Invest www.gtai.de

30.01.2018

TEXTILE AND CLOTHING MANUFACTURERS INVEST IN EGYPT

  • Chinese companies are planning several major projects
  • Germany is supplying more textile and clothing machinery

Several Egyptian and Chinese companies have announced some heavy manufacturing investments in textiles and clothing. The government is committed to creating new production priorities for textiles and wants to increase added value. Labor-intensive industries benefit from the low value of the Egyptian pound for their exports. For textile and clothing machinery, Germany achieved a delivery share of around 20 percent in 2016. In the Egyptian textile and clothing industry, the signs point to expansion and modernization. Local media reported on a series of investment plans by Chinese and Egyptian companies. According to the newspaper Al Gomhouria, a Chinese producer is planning the world's largest textile factory for USD 6 billion in the economic zone on the Suez Canal.

  • Chinese companies are planning several major projects
  • Germany is supplying more textile and clothing machinery

Several Egyptian and Chinese companies have announced some heavy manufacturing investments in textiles and clothing. The government is committed to creating new production priorities for textiles and wants to increase added value. Labor-intensive industries benefit from the low value of the Egyptian pound for their exports. For textile and clothing machinery, Germany achieved a delivery share of around 20 percent in 2016. In the Egyptian textile and clothing industry, the signs point to expansion and modernization. Local media reported on a series of investment plans by Chinese and Egyptian companies. According to the newspaper Al Gomhouria, a Chinese producer is planning the world's largest textile factory for USD 6 billion in the economic zone on the Suez Canal. The Chinese companies TIDA and Shoon Dong Roy want to build a clothing factory for USD 800 million. Sino-Egypt Minkai plans to build a textile industry complex for around USD 750 million. The local paper and stationery manufacturer Mintra plans to start the production of sports shoes with an initial investment of USD 50 million. Manufacturing in the 10th of Ramadan City is scheduled to begin in mid-2018, serving both the domestic and overseas markets. Egypt is still importing about 85 percent of the shoes sold in the country.
Oriental Weavers plans to purchase new production lines, machinery and equipment in 2018. For this purpose, EUR 6 million are to be invested. According to the newspaper Al Shorouk, the expansion will be financed by a bank loan.

State relies on new textile cities and more value added
The Egyptian state also wants to strengthen textile and clothing production. The Ministry of Investment and International Cooperation, the Supreme Council for Textile Industries and an unnamed Chinese partner want to set up a free zone for textile production in Minya. The ministry plans to provide part of the funding through international institutions and create specialized training programs for workers. According to media reports, the project value should be at USD 324 million.

In early 2017 the Egyptian Ministry of Industry announced that it would set up new textile production centers at a total of ten locations. In particular, spinning mills and weaving mills are in the spotlight. This perspective is shared by the Ministry of the Public Sector. It is aimed primarily at increasing value adding and therefore carried out a study in 2017.

Import demand for textile and clothing machinery is expected to increase
Egyptian textile and clothing companies often produce with a lot of manual work and partly outdated machines. On the one hand, the government is keen to ensure that as many jobs as possible are created for the approximately 800,000 young people who enter the market each year. On the other hand, a more automated and modern production of textiles and clothing would enable more complex products. These could be sold at a higher profit, but may also require less human labor.

An Indian company has secured a contract to modernize cotton processing. In compliance with a framework agreement with the Cotton and Textile Industries Holding, Bajaj Clothing automates cotton ginning systems. A total of eleven companies in different parts of the country will be equipped with the new machinery until August 2018. In late December 2017, Egypt Today announced that the government wants to modernize the spinning and weaving mills in Northern Egypt. The investment volume will amount to a total of one billion Euro over a period of five years.

The newly announced projects are expected to increase the demand of import machinery in the near future. Like other types of equipment, the vast majority of textile and clothing machinery will be imported into Egypt. Deliveries from Germany were able to improve both in absolute terms and relatively in 2016, despite an overall shrinking of the volume of imports. The German supply share jumped from 15.8 to 20.4 percent compared to 2015.

Import of textile and clothing machinery into Egypt (in USD  1,000)
HS Category 2015 thereof from Germany 2016 thereof from Germany
8444 1,135 0 4,481 2,025
8445 34,550 10,653 26,105 5,429
8446 18,902 984 23,591 13,346
8447 26,040 5,940 15,713 3,052
8448 23,39 5,158 20,574 3,365
8449 440 0 299 0
8451 34,796 3,335 36,512 2,334
8452 30,456 1,264 23,186 1,698
8453 3,087 5 3,678 137
Summe 173,145 27,339 154,139 31,386

Source: UN Comtrade

The consequences of the release of the Egyptian pound in November 2016 will mainly benefit labor-intensive industries and those that are processing mainly local raw materials. After October 2016, the value of the EURO soared from just under 9 to 21 Egyptian pounds and has stabilized at this level. According to various figures the textile and clothing companies in the country employs between 1.0 and 1.2 million workers. It is reported that state-owned enterprises are strongly represented in the textile sector, while the private sector plays a greater role in the clothing sector.

The advantage is dampened by the import requirements for cotton. In Egypt, especially soft and high-quality long-staple cotton is grown and exported. By contrast, domestic textile and clothing companies mainly use short-staple cotton from abroad as a raw material. Their import as become more expensive due to the currency developments. Nevertheless the competitiveness of Egypt's textile and clothing exporters has improved as a result of the new foreign exchange situation. Their exports should have developed better in 2017 than at the peak of the currency liquidity crisis in the previous year. At that time, exports fell by12.6 percent to around USD 1.7 billion.

Egyptian exports of textiles and clothing
(Selection, in USD millions, Change in %)
HS Category 2015 2016 Change 2016/2015
57 339.8 303.5 -10.7
60 2.0 35.7 1,685.0
61 483.6 388.0 -19.9
62 870.4 756.6 -13.1
63 262.2 227.2 -13.3
Summe 1,958.0 1,711.0 -12.6

Source: UN Comtrade

Increasing labor costs at Asian production sites, long transport routes and sometimes dissatisfaction with the product quality make some customers look for new sources of supply for textile and clothing products. According to a report by the news portal Middle East Eye, Egypt lies at least with USD 100 as a monthly salary for workers roughly equivalent on a level with India or Bangladesh and about half of Chinese salaries. In addition, the country at the Suez Canal is capable of fast deliveries to Europe and the United States. Regional competitors include Turkey and Tunisia. Egyptian manufacturers are not always recognizable as such, as they often manufacture for major international brands. Middle East Eye names Calvin Klein, Decathlon, Tommy Hilfiger and Zara as examples. In November 2017, Dice Sport and Casual Wear agreed to supply Levi Strauss & Co. with children's clothing.

Since 2017, Egypt became part of the Better Work Program of the International Labor Organization. The program includes 30 apparel factories in which the working conditions should be improved. Such confirmations could then give Egyptian products competitive advantages in export. However, to stand up to the tough international price warfare and at the same time to meet by the customers expected production standards will be a challenge.

21.11.2017

ITALY'S LEADING TRADE FAIRS ARE GAINING IMPORTANCE AGAIN

  • Rising numbers of visitors and exhibitors
  • Internationalization is progressing 
Milan (GTAI) - The Italian exhibition companies are emerging stronger from the economic crisis in the country: acquisitions and mergers have brought consolidation to the sector.in addition there is an increased internationalization of leading companies. The major trade fairs are again being better visited, the number of exhibitors is increasing. Italy is one of the leading trade fair locations in Europe, especially in the fashion, engineering, furniture and food sectors. 
 
More than half of the Italian exhibition companies reported that the number of exhibitors and visitors increased in the second quarter of 2017 compared to the same period of the previous year.
  • Rising numbers of visitors and exhibitors
  • Internationalization is progressing 
Milan (GTAI) - The Italian exhibition companies are emerging stronger from the economic crisis in the country: acquisitions and mergers have brought consolidation to the sector.in addition there is an increased internationalization of leading companies. The major trade fairs are again being better visited, the number of exhibitors is increasing. Italy is one of the leading trade fair locations in Europe, especially in the fashion, engineering, furniture and food sectors. 
 
More than half of the Italian exhibition companies reported that the number of exhibitors and visitors increased in the second quarter of 2017 compared to the same period of the previous year. This is the result of the latest survey by the Italian trade fair association Associazione Esposizioni e Fiere italiane (AEFI). Compared to the whole year, the development seems to be less positive, in 2016 significantly fewer customers attended exhibitions than in 2015. The main reason for this, however, is the World Expo in Milan, which attracted more than 21 million visitors in 2015.
 
According to the AEFI survey, more and more visitors and exhibitors from non-EU countries are coming to the fairs in Italy. The highly specialized, internationally oriented trade fairs in the fields of food and wine, tourism, fashion and cosmetics, furniture and design as well as mechanical engineering are particularly well-frequented.
 
Another trend is the increasing internationalization of the Italian trade fair landscape with the number of foreign exhibitors rising again in 2016, their share is amounting to 34 percent. One reason for this development is the fact that the number of Italian exhibitors fell during the years of the economic crisis from 2009 to 2015. At the same time, the Italian fair exhibitors are focusing on the internationalization of the offer; in concrete terms they are setting up subsidiaries and joint ventures abroad. Last but not least, the Italian Government encourages the participation of small and medium-sized enterprises in trade fairs abroad, relying on joint stands and subsidies.
 
Developments of fairs in Italy *)
  2014 2015 2016
Number of exhibitions 54 57 56
Exhibition space (Mio. sqm) 1,9 1,6 1,6
Number of exhibitors 39,640 35,635 39,690
.. from abroad 12,610 12,601 13,379
Number of visitors 3,201,234 3,017,166 2,732,838
.. from abroad 779,096 805,960 551,013

*) Members of the Federation Comitato Fiere Industria

Source: Comitato Fiere Industria (CFI)
 
Consolidation of exhibition companies offers opportunities
The Italian exhibition companies have developed differently in recent years. Large exhibition centers such as Milan, Verona, Bologna and Parma held up better than second-tier locations in terms of sales. The stronger international presence of the companies has a positive Impact.
 
The largest trade fair company in Italy, Milan Trade Fair, has founded several joint ventures abroad in recent years. In India and China Fiera Milano is cooperating with the Hanover Fair. In October 2017, Messe Düsseldorf announced a cooperation between the Düsseldorf-based Interpack and Ipack-Ima in Milan, Europe's two largest packaging and packaging-machine trade fairs. At the same time, Milan Trade Fair is retracing its activities in Brazil, South Africa, Russia and Thailand, due to the economic situation in these countries. In total, the Milan Trade Fair achieved sales of EUR 221 mio 2016, EUR 7 of which abroad. Since many years, however, the business has been in deficit. In 2016 the losses totaled to EUR 23 mio ros. In addition to the difficult financial situation, the fair had to cope with a (financial) scandal that affected the infiltration of a subsidiary by the mafia. Only in 2015  the company - in the context of the Expo 2015 – wrote black figures.
 
In 2016 the exhibition companies of Rimini (important in the areas of environment, tourism, and transport) and Vicenza (mainly in the area of gold and jewelry) are merged to the Exhibition Group (IEG). The group generated in the report-year sales of EUR 125 mio. However, this meant that it was not able to displace the Bologna trade fair - measured in terms of sales - from second place among the Italian suppliers. The Bologna Fair, which is also responsible for the exhibitions in Modena and Ferrara, reported sales of EUR 132 mio and a profit of more than EUR mio in 2016. IEG and Bologna Fair are expanding their business in Asia and especially in China.
 
The smaller exhibition companies have felt the long economic downturn in Italy. The fair in Brescia has gone bankrupty, it had to become rescued in Reggio Emilia by the provincial administration. One of the former most important fairs in southern Italy, the Fiera del Levante in Puglia, lost its importance during the crisis years. The main reason for the consolidation of the trade fair sector is the oversupply of events in Italy. More than twice as many trade fairs are organized here as in Germany.
 
An international trade fair overview is offered by the Exhibition and Trade Fair Committee of German Business (AUMA). Information about the foreign fair programs of the federal and states can thus be obtained here (http://www.auma.de).
 
Contact
Ausstellungs- und Messe-Ausschuss der Deutschen Wirtschaft e.V. (AUMA)
Exhibition and Fair Committee of German Business e.V.
Littenstraße 9
10179 Berlin
POB 02 12 81
10124 Berlin
T +49 (0)30 240 00-0
F +49 (0)30 240 00-330
info@auma.de
http://www.auma.de

Comitato Fiere Industria (Industriemesse)
Via Pantano, 2
20122 Milan, Italy
T +39 (0)2 720 002 81
info@cfionline.net
http://www.cfionline.net

Associazione Esposizioni e Fiere italiane (Italian Association of Fairs and Exhibitions)
Via Emilia, 155
47900 Rimini, Italy
T+39 (0)541 744 230
info@aefi.it
http://www.aefi.it
More information:
Fairs Italy
Source:

Robert Scheid, www.gtai.de

Messe Frankfurt Exhibition GmbH
15.08.2017

Home Textiles Sourcing Expo showcases 158 international exhibitors

  • Exhibitors from 9 countries showcased products across 6 categories: upholstery, bed, bathroom, table, window and floor
  • Summer 2017 Seminar Series highlights include home furnishings color trends, sustainability and post-consumer recycling, and appealing to the millennial shopper

The 8th edition of Home Textiles Sourcing Expo opened its show floor to exhibitors and buyers alike on Monday July 17, 2017. As a long-term joint venture partnership between Messe Frankfurt and CCPIT-TEX, the show is the only trade event in North America to focus solely on home textiles and finished soft goods for all home applications.

  • Exhibitors from 9 countries showcased products across 6 categories: upholstery, bed, bathroom, table, window and floor
  • Summer 2017 Seminar Series highlights include home furnishings color trends, sustainability and post-consumer recycling, and appealing to the millennial shopper

The 8th edition of Home Textiles Sourcing Expo opened its show floor to exhibitors and buyers alike on Monday July 17, 2017. As a long-term joint venture partnership between Messe Frankfurt and CCPIT-TEX, the show is the only trade event in North America to focus solely on home textiles and finished soft goods for all home applications.

Over the last eight years, Home Textiles Sourcing Expo has become a go-to event for manufacturers, retailers, jobbers, converters, contract specifiers and designers searching for the perfect fabric or manufacturing resources for their next home collection. This July’s edition showcased home products in six categories, including upholstery, bed, bathroom, table, window and floor.
 
Home Textiles Sourcing Expo Summer 2017 featured 158 exhibitors representing 9 countries, making this edition the most globally diverse group in show history. Countries represented included USA, Taiwan, Thailand, Korea, Bangladesh and more. Dedicated pavilions included the Handloom Export Promotion Council (HEPC)-sponsored India pavilion, the Pakistan pavilion featuring 8 suppliers, and the always popular Turkey pavilion. The Suzhou China pavilion also made its debut on the show floor with suppliers specializing in quality silk bedding and home textiles.

High-quality cotton, kitchen textiles, premium bedding and luxury bath textiles were also to be found among July 2017 exhibitor product offerings. “The Summer 2017 edition of Home Textiles Sourcing Expo was the most diverse showing of exhibitors in the history of the show from both a product and sourcing destination perspective”, said Jennifer Bacon, Show Director. “Our attendees were able to source quality textiles and finished goods from both established and emerging sourcing destinations. The access our show gives buyers to products in almost every home category – bedding, bath, floor, upholstery and more – is hard to find elsewhere. “

Once again taking place alongside Texworld USA and Apparel Sourcing USA, as well as the debut edition of Avanprint USA, the Summer 2017 edition of Home Textiles Sourcing Expo ultimately welcomed a diverse group of visitors from 45 countries. Together the four co-located shows welcomed a record-breaking number of visitors from a combined 72 different countries, making the Summer 2017 shows the most well attended in show history.
   
Texworld USA Seminar Series, organized by Lenzing Innovation, cater to home furnishings and home goods industry with timely topics
The Lenzing Innovation seminar series once again proved to be a big draw for Home Textiles Sourcing Expo attendees. Several home trendfocused seminars catered specifically to the home market and spoke directly to issues that the industry is facing.

Home-industry focused seminars included:
INSPIRING AND EXPRESSING COLOR: DEFINING THE ESSENTIAL TRENDS FOR HOME FURNISHINGS 2018
Laurie Pressman, Vice President - Pantone Color Institute
Color palettes for 2018 break free from traditional thinking. Colors are revitalized, hues are mixed in novel combinations and new color directions instantly and effectively express a fresh approach. While commerciality is still critical, taking a more unique approach to color will help you stand out from the mainstream. Colors range from classic arrangements through to fully saturated, punchy narratives all the while leading to newer and more unique color expressions.

BREATHE EASIER: ASTHMA AND ALLERGY-FRIENDLY TEXTILES
Dr. John McKeon, Co-Founder and Chief Executive Officer - Allergy Standards
Asthma and allergies strike one-in-four Americans, that’s 60 million people who spend an estimated $10 billion a year on products marketed to this group! But claims made by companies today can’t be verified because there is little or no governing regulation. What can companies do to capture a piece of this growing market?    

APPEALING TO THE MILLENNIAL SHOPPER: WHAT HOME TEXTILE RETAILERS ARE DOING TO CAPTURE THIS CRITICAL DEMOGRAPHIC
Jennifer Marks,  Editor-In-Chief - Home & Textiles Today Magazine
Moderator - Nina Nadash, Home Textile Manager (Americas) - Lenzing Fibers, Inc.

Despite the fact that Millennials are coming of age in one of the most frenetic economic climates in the past century, research shows almost 3 out of 4 are willing to pay extra for sustainable offerings. Marketers of products and services committed to positive social and environmental impact need to ensure they are communicating their brand message in a way that builds confidence with this critical consumer demographic. Jennifer Marks, Editor-in-Chief of Home & Textiles Today will be on hand to give her perspective on the Millennial market, highlighting the importance of matching your brand message to the personal values of this important consumer group.

 

08.08.2017

INDIA'S TEXTILE AND CLOTHING INDUSTRY STRONGLY SUPPORTED

  • Textile companies comparatively broadly placed 
  • Garment sector scores too little internationally 

New Delhi (GTAI) - India is one of the world's largest manufacturers of textiles. Cotton fabrics and home textiles are among the export hits. The clothing industry plays a comparatively small role and threatens to fall behind in competition. Both areas are required to produce higher qualities and more sustainable. The Ministry of Textiles supports the fragmented industry. Foreign suppliers and buyers can explore the market at trade fairs.

  • Textile companies comparatively broadly placed 
  • Garment sector scores too little internationally 

New Delhi (GTAI) - India is one of the world's largest manufacturers of textiles. Cotton fabrics and home textiles are among the export hits. The clothing industry plays a comparatively small role and threatens to fall behind in competition. Both areas are required to produce higher qualities and more sustainable. The Ministry of Textiles supports the fragmented industry. Foreign suppliers and buyers can explore the market at trade fairs.

The Indian textile and clothing industry is of an overall economic importance. It accounts for 14% of the total industrial production and employs directly 51 million people. Additional further 68 million people in households and micro enterprises are working for the industrial companies. Because the national economy as a whole needs to create about 12 million additional jobs per year, the government has chosen the textile industry as an employment motor. India, in contrast to the textile giant PRC, has high advantages with its labor cost.

 
The availability of natural materials such as cotton, jute and silk is a further advantage of the textile industry, which can look back on a long tradition of processing. India is now the world's largest producer of cotton. In the cultivation year 2016/17 year (4.1 - 31.3) estimated 5.9 million tons are expected to be harvested.

The cotton will be processed into yarns and fabrics. For the production of yarns, 61 million spindles (measured in spindle equivalents) are available. In 2015/16, they spun about 5.7 million t of yarn, of which 4.1 million t are made out of cotton fibers. The production of cotton cloths was about 38 billion sqm., mainly produced in decentralized weaving mills with simple mechanical looms. The global trend in clothing, however, goes to artificial fibers. In order to protect their domestic production the Ministry of Finance levies tariffs.

Textile industry with its own ministry and many promotional programs 
The Ministry of Textiles subsidizes the sector through several programs, which support the technical modernization, the construction of industrial parks, qualification, training and marketing. Garment factories may even be reimbursed for duties and fees paid. For this purpose the budget of the Ministry of Textiles was once again significantly increased in the financial year 2017/18.

The textile and clothing industry does not only want to score on the domestic market, it also wants to play a bigger international role. In a five-year plan, the Ministry of Textiles had targeted an expansion of exports to USD 64 billion by 2016/17. This target has not yet been achieved, in 215/16 the exports of textiles and clothing amounted to USD 37.6 billion. The exports of textiles even shrank against the year before. 

Textile and clothing industry in India (financial years from April to March) 
  2014/15 2015/16
Export of textiles in USD Billion  21.7 20.6
Imports of textiles in USD Billion 5.5 5.4
Export of clothing in USD Billion 16.8 17.0
Imports of clothing in USD Billion 0.5 0.6
Change in the production of textiles (in %) 3.7 2.2
Change in the production of clothing (in %) 0.2 14.7

Sources: Ministry of Textiles, Ministry of Statistics and Programme Implementation

The local garment industry has good chances of development on a large and growing domestic market. According to industry estimates the retail sector sold clothing worth approximately USD 45 billion in 2016. Experts say the world's fifth-largest market is expected to grow well above 10% in the medium term. The backlog of the 1.3 billion inhabitants is not yet covered. The trade imports international branded goods mainly from China and Bangladesh. Standard articles and custom-made products are sewn by the local industry.

Garment sector with opportunities and problems 
Cheap wages are a location advantage. They vary however very different within the subcontinent. The statutory minimum wage regulations differ between the 29 federal states. In addition the person's age, the company membership and abilities are used to calculate the minimum wage.

Due to the increasing production costs in China, labor-intensive manufacturing is moving to more favorable locations. Not only labor costs play a major role here. The complex labor law strongly restricts the efficiency of labor markets in India. Investors consider the labor law, logistics and the structure of supply chains as to be difficult. The World Bank found in its study "Stitches to Riches" in 2016 (see https://www.openknowledge.worldbank.org/handle/10986) that Bangladesh, Indonesia, Cambodia and Vietnam, surpass the competitor India in the points quality, delivery times, reliability and sustainable social responsibility.

India is also missing free trade agreements (FTAs) which facilitate access to international markets and regulate them reliably. The European Union and India have been negotiating as an example a comprehensive FTA for over 10 years with longer interruptions.

Fragmented sector structure with international Champions 
Information on the number of companies, their size classes and investment volumes are not available. Smaller textile companies and retailers are partially not registered and do not pay taxes. Medium-sized companies are very flexible, but they need to   mechanize, automate and upgrade technically in order to survive.
Larger companies look back on their long-standing tradition and have developed into internationally networked corporations. According to the Indian financial service Moneycontrol, the three largest corporations in the clothing industry are: KPR Mills (last net sales circa USD 300 million), Page Industries (USD 270 million) and Gokaldas Exports (USD 170 million); In the textile sector in general: Bombay Rayon (some USD 640 million), Sutlej Textiles (USD 350 million), SEL Manufacturing (USD  300 million), Mandhana Industries (USD 250 million); in the knitting sector: Nahar Industrial Enterprises (USD 270 million), Rupa (USD 160 million); Cotton spinning: Vardhman Textiles (USD 860 million), Trident (USD 560 million), Indo Count (USD 310 million); Spinning of synthetic fibers: RSWM (USD 450 million), Indorama (USD 390 million), Sangam (USD 230 million); Weaving and other processes: Alok Industries (USD 1.8 billion), Welspun (USD x750 million), Garden Silk (USD 370 million); Other areas: Arvind (USD 830 million), Nahar Spinning (USD 310 million), JBF Industries (USD 550 million), Bombay Dyeing (USD 280 million).

Foreign textile companies invest and explore
The government is promoting the "Make in India" campaign in the textile sector for foreign direct investments. Company foundations are for 100% in foreign hands (see http://www.makeinindia.com/sector/textiles-and-garments). The sector attracted USD 2.4 billion from 2000 to 2016 in FDI.

Foreign companies can explore the markets at various trade fairs. The textile ministry wants to expand the “Textiles India”, which took place in Gandhinagar (Gujarat) in June 2017, to a mega-event (https://www.textilesindia2017.com). The international garment industry also met at the same time at the „India International Garment Fair" (http://www.indiaapparelfair.com).

The "National Garment Fair" will take place from July 10th to 12th in Mumbai (http://cmai.fingoh.com/event/65th-national-garment-fair-1/Registration). And Messe Frankfurt is organizing "Techtextil India" from September 13th to 15th in Mumbai. Here German exhibitors can participate in a community stand (http://www.auma.de/de/messedatenbank/seiten/moesetailseite.aspx?tf=135499).

Internet addresses
Name Internet address Remarks
Germany Trade & Invest http://www.gtai.de/Indien Foreign trade information for the German export economy
AHK Indien http://www.indien.ahk.de Starting point for German companies 
Ministry of Textiles http://www.texmin.nic.in Ministry
Office of Textile Commissioner http://www.txcindia.gov.in Authority
Confederation of Indian Textile Industry http://www.citiindia.com Textile confederation
Textile Association India http://www.textileassociationindia.org Textile industry association
The Clothing Manufacturers of India http://www.cmai.in Clothing industry association

 

Source:

Thomas Hundt, Germany Trade & Invest www.gtai.de