Global Textiles & Apparels - Daily E-Paper Global Textiles & Apparels E-PAPER - (26 July 2018 | Page 6

www.gtanews.in Global Textiles & Apparels, Mumbai , 26 July201!8 AP farmers continue to opt for cotton cultivation Andhra Pradesh: Andhra Pradesh farmers had started opting for cotton cultivation over other farming after the Indian government hiked Minimum Support Price (MSP) of cotton from Rs 4,300 to Rs 5,100 per quintal. The Cotton cultivation area in the state is expected to go up from 20 to 25 per cent during this season post hike in MSP. Last year cotton was cultivated in 12.5 lakh acres in the state. Farmers still have another 45-day time to start cotton cultivation. Fall in the price of pulses has also encouraged farmers to take up cotton cultivation in Andhra Pradesh. The farmers in the state have to fight with pink bollworm attack which has been a major reason of concern for them. However, district administration is gearing up to fight with this menace. Hundreds of acres is under the grip of pink bollworm pestilence at this juncture. on Rising Wages Mumbai: The Synthetic textile manufacturers has been planning to cut the prices of their products by at least 5 per cent from August following the government's decision to reduce the effective GST (goods and services tax) rate on its raw materials by 7 per cent. The GST Council had decided to allow input credit on manmade fabric equivalent to 7 per cent. This will provide a level-playing field to synthetic textile manufacturers through a uniform tax rate on the entire value chain. The move will cut effective GST on manmade (synthetic) fabric to 5 per cent from 12 per cent earlier. The revised GST rate will be applicable from July 27. All textile raw materials, including cotton yarn and its fabric and synthetic yarn attract 5 per c e n t G S T. B u t s y n t h e t i c f a b r i c manufacturers was forced to pay 12 per cent of duty without having any opportunity to claim a refund of duty difference. This means the synthetic fabric was the only product in the textile value chain with 12 per cent of GST. Associations & Company affairs 06 Kurabo improves its Productivity Synthetic Textiles Garment Factories Shutter to be 5-7% cheaper Japan: Kurabo International has experienced 10 per cent boost in their productivity with the adaptation of Lectra cutting room solution. The Japanese firm had earlier planned of implementing Lectra’s solution to bridge the existing gaps such as lack of skilled labour and high manufacturing cost. Moreover, the technology is assisting Kurabo in reducing fabric wastage too as it eliminates the errors of material quality and fit check. Therefore, Kurabo has been able to speed up the process and provide quick deliveries to the market while maintaining the product cost. Myanmar: Around 14 factories in Yangon’s industrial zones may cease operations within the next two months due to the rising cost of land and employees. Most of the factories are run by garment manufacturers. The shuttering of the factories could leave over 3000 jobless. Earlier this year, the National Committee for the Minimum Wage set the country’s daily minimum wage at K4800 (US$3.60) or K600 per hour for an eight- hour day despite objections from both labour and employers. This is up by more than 30percent from K3600 before. According to the Directorate of Investment and Company Administration a nd Ministry of Commerce, foreign direct investments into the manufacturing sector are the third highest in Myanmar. Manufacturing in Myanmar mainly consists of garments, which represents the country’s second largest export. In 2016- 17, the industry exported garments worth some $2.2 billion. According to Myanmar Garment Manufacturers Association, there are 400 garment factories including over 170 run by foreigners. Over 60 pc of these investors are Chinese. Myanmar-produced garments are mainly exported to Japan, EU, South Korea, US and back to China. And, with trade tensions rising between China and the US, financial experts and industry watchers in Myanmar are now expecting the Chinese to move more production activities into the country, resulting in more Chinese factories opening up in Myanmar. Bangladesh: The Bangladesh RMG exports noted double-digit (10.58%) boost to its biggest export destination, the European Union, in FY 17-18 that ended in June this year. The country exported apparels worth US $ 19.63 billion as against US $ 17.75 billion in the prior fiscal. The Germany was the top importer of Bangladesh’s RMG with US $ 5.579 billion worth of import. Bangladesh noted 8.66 per cent surge in Germany market on the yearly note. UK where Bangladesh performed quite decently during FY 17-18 and exported apparels worth US $ 3.742 billion marking 12.64 per cent growth on Y-o-Y basis. The shipment from Bangladesh to Spain too escalated massively by 21.23 per cent and clocked US $ 2.278 billion figure. In previous fiscal, the country only managed to ship apparels to Spain worth US $ 1.878 billion. Bangladesh shipped RMG worth US $ 1.852 billion in France marking a surge of 4.95 per cent, while the shipment value in the Italian market touched US $ 1.454 billion figure with 7.82 per cent boost over the last fiscal. EU contributed 64.12 per cent of the overall RMG shipment that Bangladesh managed to export during FY 17-18, whereas last year the share of EU was 63.06 per cent. Bangladesh tapped US $ 30.614 billion from its RMG exports to the world in the FY 17-18 posting 8.76 per cent growth on Y-o-Y basis. Subscribers of Global Textiles & Apparels are requested to update their profile & contact information by sending us e-mail, so that can be put on the Regular Mailing List. E-mail: [email protected] Bangladesh RMG Export growth Second Kornit Vulcan Order Germany: Kornit Digital, a global market participant in digital textile printing innovation had announces that T-Shirt & Sons, Westbury, England, has placed an order for a second high-productivity, low cost-per-print Kornit Vulcan system in a few weeks’ time. The company also offers dropship production services to garment retailers. T-Shirt & Sons has been one of the largest direct-to-garment printers in Europe over the last few years, with an impressive installation of 16 Kornit Avalanche 1000 systems, spread over two locations in the United Kingdom and the Netherlands. On average, T-Shirt & Sons produces 9,000 garments per day, with peak time deliveries amounting to 18,000 garments per day. In May 2018, the company invested in its first Kornit Vulcan system to offer high-definition prints with an unparalleled color gamut and exceptionally soft hand feel to its customers. The smooth installation process, quick ramp-up and fast ROI of their new direct-to-garment workhorse, convinced T-Shirt & Sons to invest in a second unit quickly. The second Kornit Vulcan system will be installed in the third quarter of 2018. FidelisWorld invests in Wildcraft Mumbai: Wildcraft has received an investment from Mauritius-based FidelisWorld. The latest investment would help Wildcraft to expand its reach in India and globally. The exact amount of investment has not been disclosed by the companies. The investor is sure that Wildcraft is capable to replicate its status in the global market same, like it has in the domestic market. Wildcraft, India’s first outdoor brand retails its products through 175 exclusive stores and more than 5,000 multi-brand stores across 500-plus Indian cities. The company has two manufacturing units, in West Bengal and Himachal Pradesh. In addition to Indian market, it also retails its products at international destinations like South Asia, Middle East, and Central Asia. The brand also inked its first tie-up in Europe recently.