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Licenced to post without prepayment no.: MR/Tech/WPP-254/South/09-11

RNI No: MAHENG/2003/14851 Regd. No. MH/MR/K’devi/14/2009-11

ISSN 2230-8725

VOL. 1 No. 01

Contact: International Book Agencies Ltd. 94, New Eskaton Road, Ramna, Dhaka Tel: 8359971, 8359972, Email: ibal@myway.com

FEBRUARY 2011

INSIDE

23 Spinning

12 Knitting

CHALLENGES FOR BANGLADESH SPINNING INDUSTRY

DESIGNING AND MAKING OF SWEATER

16 Market Focus SPANISH TEXTILE AND CLOTHING INDUSTRY

19 Processing WET PROCESSING OF GARMENTS

PAGES 28

26 Event COVERAGE OF GARMENTECH EXHIBITION

Tk 100

Read More... MARKET INTELLIGENCE REPORT WEAVING: YARN QUALITY REQUIREMENT

P 14

P 10

CHALLENGES OF APPAREL INDUSTRY P 28

Overcome challenges to continue Growth Story

T

extile & Clothing industry is the largest foreign exchange earner and employment provider in Bangladesh. It is also well known as one of the most competitive clothing manufacturing industry in the world. In short, Textile & clothing industry is playing a prominent role in building the nation, nurturing human resources and creating opportunities for the future. The entrepreneurship skill of the Textile & Clothing industry in Bangladesh is one of its kind and unmatchable. In spite of several hurdles, this sector has demonstrated

expertise on how to build a world scale industry in short span of time. However, as the industry is growing even bigger, it brings in several new challenges. One of the major challenges is to have complete back ward integration to not only become competitive but also to shorten the lead time and arrest value leakage along the supply chain. Here, the industry would need fiscal and other policy related support from the ruling establishment. Though large scale textile projects (yarn spinning, weaving fabric etc) are coming up to make the

Bangladeshi industry a complete textile & clothing power house, the country is still dependent on imports. Among other challenges, human resources related issues are going to be a major cause of concern if not addressed before it becomes to large to handle. As the industry grows further, there would be huge requirement of educated and well trained technical professionals as well as workers. Also, social compliance and responsibility, environment related issues might aggravate as well. However, the biggest challenge for Bangladeshi

Roberto Molinaro, Operation Manager, Textile Division Cell. +44 –(777)- 6233056 E-mail - rmolinaro@c3.com 5430 Royalmount Ave Montreal, QC. Canada H4P 1H7 Direct: +1 (905) 812-0544 Tel: +1 (514) 345-8000x2454 Fax: +1 (647) 723-7544

RMG industry, as we anticipate, would be to remain competitive in the long run as well as to migrate to value added product segment gradually. Textile & Clothing industry has been shifting its base from high cost to low cost destinations and Bangladesh is a rapidly growing economy which would eventually come out of the shadow of LDC status (by 2021 or 2036 whenever it happens). So, as the cost of production increases, industry has to move up to the value added sector. However, for the short time, Bangladesh should con-

D J Gohain Managing Editor

centrate on en-cashing the opportunities & work towards solving the problems in hand. At the same time, the country needs a detail roadmap covering the entire value chain of industry to become a powerhouse of textile & „ clothing manufacturing.

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2 Government News

Govt intends to rescue private jute mill workers Dhaka: The government, during a meeting held recently between the State Minister for Labour and Employment Monnujan Sufian & the workers' leaders from various privately owned jute mills, came up with a decision to arrange tripartite meeting with the private jute millers and their workers. The meeting would be organized to address the issue of giving out festival allowances to workers of these private jute mills. The government intends to conduct this meeting within this month itself. This consideration from side of the govern-

ment resulted from the assertions of workers' representatives that, they have been surviving under miserable conditions as remunerations that they draw for their work every month are too less to manage their survival. Initially, the workers' leaders intended to observe a strike on January 4, but then relying on the commitment made by the State Minister, they dropped the idea for the time being. This action had been planned under the aegis of the 'Bangladesh Private Jute Mills, Yarn (Twine) CBA and non-CBA Sramik League „ Coordination Council'.

Govt takes measures to check yarn prices Dhaka: Government of Bangladesh is taking all the necessary steps to restraint the yarn prices in the domestic market. This was assured by the Commerce Minister M Faruk Khan. The Minister said that he anticipates a solution for this problem by the coming week. The Minister is expected to meet the leaders of various associations like BKMEA, BTMA & BGMEA before arriving at a final decision on the yarn price. The Minister recommended the BKMEA leaders to prepare a report on cotton price trends in the global market for the past three months. The BKMEA leaders had earli-

er said that several knit units had been closed down in the country after the rise in cotton prices, as it is the most important raw material required for producing knit products. This led to the dismissal of many workers. BKMEA leaders revealed that the yarn prices, at present, stood at USD 5.10/kg as compared to USD 4.50, a few days ago. Minister also gave an assurance of controlling the yarn prices after having a discussion with textile & spin millers of the country. Team of 34 BKMEA members also requested the government to ensure adequate power and „ gas supply to knit units.

Textile Excellence Bangladesh Edition X February 2011

Govt sanctions 8 textile & fashion institutes

China's rising labour costs to benefit Bangladesh's RMG export

Dhaka: The Executive Committee of the National Economic Council (ECNEC) which met on October 19, has sanctioned two proposals for setting up eight textile and fashion designing institutes and training centres, and has also sanctioned a fund of Tk 1.63 billion for the purpose. Planning minister

Dhaka: The readymade garments (RMG) industry in Bangladesh is likely to benefit from increased labour costs in China and recent government moves that appreciated the Yuan against the dollar. Many observers feared that the domestic readymade garments sector would be severely weakened as the European Union (EU) withdrew certain restrictions on cheap Chinese apparel imports and providing additional benefits to Pakistan based exporters.

AK Khandker divulged that, as Bangladesh's readymade garments are shipped across the globe, and thus the government means to promote country's apparel industry. He divulged that, four fashion designing and training institutes and four textile institutes would be set up in various parts of the country. Funding for this Tk 360 million project will come from the Japan Debt Cancellation Centre and the government, with each contributing Tk 350 million and Tk 10 million respectively. Also four textile institutes are to be set up at Chittagong's Rangunia, Khulna's Khalishpur and at Natore, under the Apparel and Jute Ministry, with total funding amounting to Tk 1.27 billion flowing from the Government. The government proposes to execute both the proposals only by „ 2013, Khandker said.

Former foreign secretary Farooq Sobhan told in a meeting of the South Asian trade body SAFTA that Bangladesh will lose less than it was previously thought, as the costs of Chinese readymade garments have risen due to an increase in labour wages and appreciation of Chinese currency. About 53% of Bangladeshi Garments exports goes to the EU, and the EU move to lift restrictions on Chinese imports left sector's businessmen „ increasingly nervous.

RMG industrial park to be set up outside Dhaka Dhaka: The industries ministry is planning to set up a readymade garment industrial park outside Dhaka aimed at reducing the pressure of apparel units in & around the capital. A project earmarking Tk 438 cr has been taken to set up planned RMG industrial park on 300 acres of land at Bausia under Gojaria upazila of Munshiganj. The industries minister, Dilip Barua, told to local business Daily that such industrial park would not only provide one-stop services to garment entrepreneurs but also reduce pressure of the potential apparel industry in Dhaka city. This will be a model RMG industrial park, which will help attract foreign buyers. The park will have various facilities including such as attractive industrial plots, internal roads, drainage facilities, uninter-

rupted supply of utilities, Central Effluent Treatment Plant, waste dumping yard and fire fighting equipments. Welcoming the decision, the commerce minister, Faruk Khan, said the process to set up such an industrial hub was an epoch-making one & which would definitely give further boost to potential industry. RMG industry has expanded substantially but industrial plots were set up in an unplanned manner in the capital & its fringes, which resulted in environmental pollution and accidents in different forms at industrial units, read the project concept paper. RMG industry is considered to be the largest foreign currency earner, contributing nearly 80% of all export earnings. Over 2.5 mln workers are now employed in $13 bln „ labour intensive sector.

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Industry News 3

February 2011 X Textile Excellence Bangladesh Edition

Local companies to invest US$ 7.671 million in DEPZ Dhaka: M/s Cassmark Fashion Limited, a 100% Bangladeshi owned company, will set up a garment factory in the Dhaka Export Processing Zone (DEPZ). In this connection, an agreement was signed between Bangladesh Export Processing Zones Authority (BEPZA) and the company. Member (Investment

High jute prices greatly satisfy jute cultivators Dhaka: After experiencing several years of slow business, jute is being traded at high price in the Narail district of Bangladesh this season, which has greatly satisfied the jute growers. During the last 2 years, one maund of jute was sold at Tk 9001200. Now, it has increased to Tk 1900-2000 per maund in the domestic markets. Jute cultivators had been forced to trade the golden fibre below the production cost for the last few years. With rise in the prices of jute, cultivators were highly elated. Low prices of jute prevailing over a long period had forced cultivators to shift from jute cultivation to farming of other crops such as „ paddy or vegetables.

ActionAid calls on the Govt to aid handloom industry Dhaka: ActionAid, Bangladesh, a charity organization based in UK recently held 'National Sharing on Climate Resilient Handloom' workshop in Dhaka, where experts urged the government to assist country's handloom industry by granting subsidies & other support to weavers & entrepreneurs. S Mustafa Kamal, Chief (planning & implementation) of Bangladesh Handloom Board, and proprietors of several other leading fashion houses & boutiques addressed workshop, while Farah Kabir, Director of ActionAid Bangladesh presided over it. Director of Probortona boutique, Shahid Hossain Shamim, said that, the government & legislators should step forward to campaign for handloom-made fabrics, which brings in around Tk 15 billion to country's exchequer, every year. Further, while speaking on negative effects of power looms, Shamim said that, these looms emit large quantity of carbon each year, which affects country's environment. Thus, he urged everyone to initiate proper steps to boost the efficiency of handloom industry. Kalam said that, government solely cannot act to safeguard the stakeholders of the industry, & that the private businesses can emerge as major partakers for dealing with the issue, by offering technical „ assistance and training.

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Promotion) of BEPZA Md Moyjuddin Ahmed and Managing Director of M/s Cassmark Fashion Limited Sabrina Islam signed the agreement on behalf of their respective organisations. The company will invest US$7.671 million in setting up the factory and will produce garments items. The company will also create employment opportunity for 1,897 Bangladeshi nationals. Executive Chairman of BEPZA Major General ATM Shahidul Islam, Member (Engineering) Abu Reza Khan, Member (Finance) AKM Mahbubur Rahman and Secretary Md Shawkat Nabi were present at the agree„ ment signing ceremony.

India exported cotton to Bangladesh Benapole: Last month Bangladesh has started importing Indian cotton after a six-month embargo. Customs officials said 144 trucks with 8,253 bales of cotton entered Bangladesh. An Indian cotton exporter and manager of L G W Limited, 'Dipak', told reporters that an Indian central finance ministry circular on Apr 9 imposed a VAT of Rs 2,500 per tonne of cotton export. It also ordered that the permission letter for cotton export had to be brought from Delhi instead of Kolkata. Later on Apr 19, the Indian government imposed a direct ban on exporting cotton to

Bangladesh, Dipak added. The Indian Cotton Exporters' Association went to the High Court challenging legality of the embargo. Cotton exports resumed on Monday as a recent court verdict went in favour of the exporters, the Indian businessman said. Bangladesh imports about 5.5 million bales of cotton every year for yarn production. Of that, four million bales are imported from Uzbekistan and another one million form India. Although cotton imports remained suspended at Benapole border, a very small number of businessmen kept up imports with the

required VAT. Benapole customs cargo officer Fazlur Rahman told bdnews24.com about the 144 trucks entering Bangladesh. Narayanganj's Jony Yarn imported 2,378 bales, Dhaka's P N Enterprise 3,384 bales, Israk Spinning Mills 630 bales and Ilhan Textile imported 1,861 „ bales.


4 Industry News

Textile Excellence Bangladesh Edition X February 2011

BTMA elects new president Dhaka: Jahangir Alamin, chairman of Shamsul Alamin Group and managing director of Fuad Spinning Mills, has been elected president of Bangladesh Textile Mills Association for 2011-12. Alamin replaced Abdul Hai Sarker, who served the association for four years in a row, said a statement on December 28, 2010. The election took place on

December 11 at the association's office in Dhaka where three vice-presidents were also elected. The vice-presidents are: Showkat Aziz Russell, director of Partex Group and managing director of Amber Cotton Mills; MA Zaher, chairman of Deep Textile Mills, and Ahmed Ali, managing director of Padma Bleaching „ and Dyeing.

Bangladesh Export earnings mark 41 % growth Dhaka: High demand coupled with a recovery from global recession has pushed up six months' exports. During July-December of the current fiscal year, exports soared 41%, compared with the same period a year ago, according to the latest data released by the Export Promotion Bureau. In the first 6 months, Bangladesh shipped goods worth $10.26 billion. In December alone, the country

earned $1.99 billion. The combined export growth of both knitwear and woven garment rose 42.09% in the period compared with the same period a year ago. Bangladesh exported knitwear worth $4.31 billion in the six months, registering 43.39% growth. The country earned $3.63 billion in woven garment exports during the period, which means 40.79% growth. Shipbuilding is another bright spot, as the sector fetched $18.02 million from

exports of ocean-going vessels. The sector recorded 1,924 percent growth. Monoj Kumar Roy, joint secretary (export) of the commerce ministry, said “every sector showed a positive trend with the recovery from the financial meltdown. China is losing its market for higher production costs and a shortage of workers in its garment sector. This is part of the reason exports from Bangladesh went high," Roy said. Salim Osman, president of Bangladesh K n i t w e a r Manufacturers and E x p o r t e r s Association, said “many orders have shifted from China to Bangladesh. Also, the export of garment products is increasing in some new destinations. As a result, we are getting more markets and more value," he said.Anwarul-Alam Chowdhury Parvez, former president of Bangladesh Garment Manufacturers and Exporters Association, said “the increased price of per unit of apparel item also contributed to the higher growth. Although the prices of raw materials such as cotton and yarn have gone up on the international market, buyers are paying high for the finished products." he said. „

Bangladesh to clock record GDP growth: central bank Dhaka: Bangladesh's central bank projected that the country is on track to achieve record 6.7% economic growth this financial year, driven by an impressive turnaround in garment exports. The Bangladesh Bank said economic activity had gained momentum since the start of the financial year in July, with exports posting 37% growth in the 4 months to October thanks to a huge rise in garment orders. Imports were grew by 37%, reflecting rising domestic demand & imports of industrial machinery grew 36%, indicating major

expansion in the country's manufacturing sector. Global economic crisis drove GDP growth to 7 year low of 5.8% in the year to July 2010. Exporters said they have been flooded with export orders of clothing from European Union countries & North America, with major retailers like Wal-Mart, Gap and H&M making the country key source for their low-cost products. Ready-made garments for top Western brands make up 80% of Bangladesh's annual export earnings & employ some 40% of Bangladesh's indus„ trial workforce.

Global Industry News Indonesia imposes antidumping duty on PSF imports The Ministry of Finance in Indonesia has announce that, polyester staple fibre (PSF) imports from various countries like India, China and Taiwan, will henceforth, attract antidumping duty. The duties will vary from country to country and may also be different for suppliers from the same country. The domestic textile industry has vehemently objected to the new policy, because it could impact the domestic spinning sector to a very great extent, since it is facing shortage of raw materials. It says that cotton prices have climbed steeply in the past few months along with which there are wide fluctuations, which has led spinners to switch to other fibres like PSF. The local PSF producers are not able to meet the requirement of the domestic industry as they too are exporting the fibre, which necessarily means that, the spinners have to import PSF from various countries. In the light of the same, the textile sector has requested the Finance Ministry to reconsider the decision. India slapped duty on polypropylene from Oman, Singapore India has imposed anti-dumping duty of up to US $323.5 a tonne of polypropylene, for making woven sacks used for carrying cement, foodgrains, sugar and fertiliser, from Oman, Singapore and Saudi Arabia to protect the domestic industry from cheap imports. The restrictive duty, which would range from US$28.49 a tonne to US$323.5 a tonne, was imposed on the recommendation of the Directorate General of AntiDumping and Allied Duties (DGAD), a notification by the Central Board of Excise and Customs (CBEC) said. The CBEC in the Department of Revenue has imposed the duty for a period of five years. While the Commerce Ministry recommends the duty, the Finance Ministry imposes it. EU imposed anti-dumping duty on high tenacity yarn of polyesters from China The EU has imposed definitive anti-dumping duties on imports of high tenacity yarn of polyesters originating in the People's Republic of China. At the same time, the EU has terminated the proceeding concerning imports of the same product originating in the Republic of Korea and Taiwan. The proposed anti-dumping duties are the following: Zhejiang Guxiandao Industrial Fibre Co. Ltd, 5,1 %; Zhejiang Hailide New Material Co. Ltd, 0 %; Zhejiang Unifull Industrial Fibre Co. Ltd, 5.5 %; Hangzhou Huachun Chemical Fiber Co. Ltd, 0 %; Oriental Industries (Suzhou) Ltd, 9.8 %; All other companies in the PRC, 9,8 %. Vietnam's export turnover of textile and garment in world top 5 The Vietnam textile and garment sector achieved an export turnover of US$11.2 billion in 2010, an increase of 23.2% over 2009, and was among the world's top 5 in terms of export turnover. In 2010, the sector provided stable jobs for two million workers. The amount of local material used in "made-in-Vietnam" textile and garment products rose to approximately 46%. The sector plans to achieve export earnings of over US$13 billion this year, a rise of 20% against 2010. Deputy Prime Minister Hoang Trung Hai asked the sector to accelerate the process of structural change and amend its expansion plans to meet future market conditions, and at the same time, apply new technology in order to continue to increase productivity. He stressed that the sector should form a production chain amongst fabrics, textile, dyeing, and sewing enterprises so as to raise their overall competitive edge. It is necessary for the sector to gradually shift from processing to manufacturing export products, he added. Colombia reduces import duties on a range of items Colombia's Ministry of Commerce, Industry and Tourism issued a decree in November (Decree 4115/2010) that modifies the MFN duties in place on a broad range of products, including textiles, apparel, footwear, toys, electrical and electronic machinery and equipment and various other products of interest to Hong Kong and mainland Chinese exporters. For example, the MFN duty on what appear to be most or all apparel tariff lines, certain footwear and toys has been lowered from 20% to 15%, while the duty on textile made-ups has been reduced from 20%to 15 or 10%, depending on the product. The duty on knitted and woven fabrics has generally fallen from 20% to 10% while the duty on a range of electrical machinery and equipment of HS Chapter 85 has dropped from 15% to 5% or from 20% to 15 %. Colombian authorities also issued a separate decree (Decree 4115/2010) that modifies in various ways the MFN duty rates on motor vehicles of HS Chapter 87. Mercosur Committee discusses proposed increase to import duties on toys, agrees to extend duties on textiles, apparel and footwear through end of 2013 As reported in a previous issue of Business Alert-US, the Brazilian government recently approved at the behest of domestic toy manufacturers a proposal to increase from 20 percent to 35 percent the most-favoured-nation duty on finished toys and reduce from 20 percent to 16 percent the duty on toy parts and components. The proposal was discussed at the 1-2 December meeting of Mercosur's Common Market Group and further discussions are expected to take place in the coming weeks and months. The CMG also agreed to extend until the end of 2013 the tariff increases that were adopted for fabrics, apparel, carpets, footwear and textile made-ups in 2007 and certain yarns in 2009. Specifically, the common external tariff for apparel, carpets, footwear (excluding footwear parts) and textile made-ups classified under HS Chapter 63 was increased from 20 percent to 35 percent while the rate for virtually all fabrics was raised from 18 percent to 26 percent (the duty on aramid fabrics remained at two percent, however). The common external tariff for certain yarns was increased from 14 percent to 18 percent. Argentina and Brazil implemented the new rates for apparel, fabrics, footwear and textile made-ups during the second half of 2007 but Uruguay and Paraguay were allowed to apply reduced rates for most products. Italy seizes textile products containing Chromium (VI) According to a recent RAPEX online publication1, the Italian authorities have seized seventeen different textile products such as skirts, shirts, track suits and trousers. The authorities claim that these products contain chromium (VI) in amounts ranging from 2.4 to 19.2 ppm despite the fact that the products do not contain any natural or synthetic leather. Although there is currently no legislation in Italy on the maximum concentration of chromium (VI) allowed being present in textile and leather products, the authority justified their seizures by benchmarking these products against the extractable chromium content of 1.0 „ ppm set in the EU Common Market requirements.

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Global Industry News 5

February 2011 X Textile Excellence Bangladesh Edition

Textile firms to explore trade prospects under Indo-Japan FTA Mumbai: A high powered delegation from Japan, supported by the Ministry of Economy, Trade, and Industry (METI), Japan Textiles Import Association (JTIA) and Japan Fashion Week Organization (JFWO), visited Mumbai on 16th to meet, interact with, and showcase a representative range of Japanese textiles and fabrics to the Indian textiles industry. The essential objective of

the visit was to assess the potential of increasing trade relations between Japan and India in this area. Clothing Manufacturers Association of India (CMAI) organized this interactive session. Major textile and clothing manufacturers from India and Japan are trying to explore prospects for enhancing bilateral trade between both the countries, as they gear up to ink a free trade agreement, shortly.

Rahul Mehta, President, CMAI

The Japanese have realized that India is a market that they can no longer ignore. Leading Japanese entrepreneurs has already met Arvind Mills, Alok Industries, Raymond, Future Group, Mafatlal and S Kumars. Firms such as Mafatlal Denim and S Kumars Nationwide are keen on entering into JVs with Japanese firms in order to get access to the Japanese apparel and fabric market.

Most of the Japanese companies are proficient in manufacturing premium quality fabrics and yarns. Both the countries have jointly announced that the Comprehensive Economic Partnership Agreement is likely to be effective only after signing the deal and accomplishing the essential procedures. The free trade pact is expected to enhance the trade between both the countries considerably which

Japanese delegation meeting the press

stood at about US$ 11 billion during the last fiscal year. Several Indian companies have approached the leading retailers as well as manufacturers of Japan in order to sell their branded products in Japan and to bring some of the Japanese brands to India. Rahul Mehta, President, CMAI said, "This initiative was conceptualized in Japan late last year, whereby Japan is looking at India as a prospective trading partner in three main aspects. Boost exports of Japanese textile products to India, amplify imports from India and look for some sort of a technological tie-up with Indian manufacturers. With regards to technology tieups, the Indian textile and apparel industry has proved that, it can adopt and adept to the latest technology in the world and in the process produce world-class products, all, which provides a win-win situation for the two countries and which also led to the initial interaction „ between Japan & India."

Japan's MMF production rises 7.3% in Nov’ 10

Pakistan's textile exports rise to US$ 4.81 billion in July-Nov

Tokyo: The Japan Chemical Fibers Association reported that November man-made fiber production in Japan increased by 7.3% over the same month of last year to 81,581 tons. Of this, synthetic fibers increased by 5.9% to 68,666 tons. Among

Karachi: The textile exports have registered a growth of 18.64% to reach US$ 4.813 billion in July-November from US$ 4.056 billion during the same period last year. According to the provisional statistics of export receipt performance during the first five months of the current fiscal year, all the finished textile products have shown improvement in their exports. The value-wise major component in textile exports was knitwear under which foreign buyers imported textile products worth US$

major items, nylon filament slightly rose by 0.4% to 8,028 tons. Meanwhile, acrylic staple fiber decreased by 7.2% to 10,526 tons, along with polyester filament by 4.5% to 14,888 tons, and polyester staple fiber by „ 2.1% to 12,452 tons.

Indonesia's textile exports surpass US$10 billion Indonesia: According to sources in Indonesia, the nation's exports of textile goods are expected to reach US$ 11.2 billion in 2010, thus surpassing US$ 10 billion for the first time in two years. Compared to 2009 exports of US$ 9,567 million, the growth is 17%. Export

growth is attributed to a recovery of exports to Europe & U.S. Meanwhile, imports of textile goods are forecast to reach US$ 5.5 billion, and sharply increase from 2009 imports of US$ 4,195 million as a result of a significant rise in raw materi„ al costs such as cotton.

Chinese cotton buyers visit Rajkot to buy Shankar 6 variety Chinese cotton buyers visited Gujarat's Rajkot city to buy the famous Shankar 6 variety of cotton. Shankar 6 variety of cotton is famous worldwide and it is a major product of the Saurashtra region. A Chinese buyer said there is an increased demand of the Shankar 6 variety in China. "China tex-

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tile may find this variety very rare. Because of a good allowance and a very good market here, it is very good to use. We have a good demand and most of our customers have enquired on this variety of cotton," said Liu Xue Lear of the Changzhou Linunyuam Textile Materials „ Company.

1.075 billion from Pakistan. The knitwear export is jumped up by 24.28% during July-November against US$ 865 million during the corresponding period last year. Similarly, the exports of bedwear showed a growth of 22.3% to US$ 795 million during the period under review from US$ 650 million last year. Exports of readymade garments, however, grew nominally to US$ 414.5 million against US$ 412 million. Industry sources said that the economic recovery in the world after facing recessionary period during

2008 and 2009 resulted in high demand for the textile products. According to the provisional export data of the State Bank of Pakistan (SBP), the raw cotton exports also have gone up by 17.27% to US$ 129.46 million during the period under review from US$ 110.55 million last year. Similarly, cotton yarn exports grew to US$ 507 million from US$ 443 million. The government has estimated that the textile exports would be around US$ 10.4 billion in FY11 against the US$ 10.182 bil„ lion last year.

Pakistan: Rs 7.5 billion provided for textile policy initiatives Karachi: Ministry of Finance has provided Rs 7.5 billion on account of textile policy (2010-14) initiatives. According to documents available, Rs 4.2 billion, out of Rs 7.5 billion has been released to State Bank of Pakistan for disbursement on

different schemes announced under the policy. The remainder amount will be disbursed in the next half of the year. Federal Minister for Textile Farooq S Khan, while chairing the first meeting of Textile Policy Implementation Liaison

Committee, stated that the government has allocated Rs 10 billion for initiatives under the textile policy for the current fiscal year. He said that the textile policy would be implemented in its true spirit for the development of tex„ tile sector in country.

Mexico and Canada lower MFN duties on various products Hong Kong: Exporters are advised that Mexico & Canada lowered their mostfavoured-nation duties on a broad range of items on 1 January 2011. The Mexican government unveiled a programme in December 2008 that established schedule for gradual reduction in 5 annual stages of the MFN duty rates on approximately 97% of manufactured imports. The first round of duty reductions took place on 1 January 2009 and the latest round was implemented on 1 January 2011 and encom-

passed wide spectrum of products. For example, the MFN duties on certain apparel, textile made-ups, footwear, travel goods & handbags were lowered from 30% to 25% on that date while the duties on certain footwear & numerous textile items including various yarns, woven fabrics, knitted fabrics and special and industrial textiles fell from 15% to 10%. Canadian authorities unveiled an ambitious initiative in March 2010 to provide duty-free treatment to

all manufacturing inputs imported into Canada. The duties in place on a broad range of textile inputs were eliminated on 5 March 2010 while the duties on all other textile inputs are to be phased out over a five-year period & removed altogether on 1 January 2015. Total of 381 tariff lines saw duty reduction on 1 Jan. 2011, including 287 textile products of HS Chapters 52 through 56 and 58 through 60, 25 items of HS Chapters 84 & 85, and 25 items of HS „ Chapter 39.


6 Global Corporate Update

Textile Excellence Bangladesh Edition X February 2011

Otto plans to set up textile unit in Bangladesh Germany: Otto GmbH and Co KG has decided to establish a textile unit in Bangladesh in conformity with the social business model. The company has close ties with Bangladesh for decades and it intends to set up a factory in the country. In November, 2009, the company had signed a deal with the Grameen Trust to initiate a joint venture Grameen Otto Textile Company, which will manufacture readymade apparels for the global market under socially and ecologically sustainable conditions. Both are

expected to have a fifty-fifty partnership in the joint venture. Otto is likely to extend the entire funding whereas Grameen is expect-

ed to provide the necessary technical knowledge and vast set of connections. Otto has several social business enterprises in Africa. Five years ago, the company had started social business in several African countries in order to enable cotton growers to cul-

tivate higher-yield crops. The company has imparted training to the cotton growers. The venture has been a real success. Currently 150,000 cotton growers are working for the undertaking. Otto Group is a leading corporation with 123 major companies, 50,000 employees working in 20 countries. It is family-owned global business and service corporation. It is the world's largest mail order company and comes next in ranking only after Amazon to have the second largest online mar„ keting network.

Salek Textile acquires denim plant Gazipur: Government will start acceSalek Textile Ltd is through with the, functionalities of acquiring Titas Spinning and Denim Company Ltd, an export-oriented denim unit. The cost of acquisition came to Rs. 1200 million, company officials divulged. Matin Chowdhury, Managing Director of Salek Textile, a spinning mill based in Gazipur stated that, pursuant to their expansion plan, they acquired the Germany-Bangladesh

joint-stake denim mill, in August. The denim mill for some years now has been running in losses, as a result of, fall in production capacity on account of scarce gas and power supply, which caused the mill to lose its competitive edge, he said. Saltex MD divulged that, originally they were planning to come up with a new industrial unit, but as the nationalized gas sourcing units have ceased providing fresh gas connections to industries, till

easing of the gas crisis in the country. Eventually, when they learned that Titas Denim was up for sale, and that the unit already has a gas connection in place, they acquired it, he added. The denim mill has a capacity to produce 7.5 million metres of denim per year was set up in 2006 in Gazipur, the official stated and added that, they mean to further elevate the production capacity of the unit, „ post acquisition.

Arvind launches Energie Mumbai: Arvind Lifestyle Brands has launched the Italian jeanswear brand Energie. The first few shops were opened in Bangalore, Delhi, Mumbai and Hyderabad. The brand is targeted at the affluent young male. The license partnership entails domestic production to cater to Indian fits, and distribution and rollout of stores and shop-in-shops in India. Energie is premium denim wear label positioned a few notches over Levi's, while operating at a lower price point than Diesel. The brand is part of the Sixty Group's portfolio which also includes fashion denim wear brand for women Miss Sixty, Killah, Refrigiwear, Murphy & Nye, Richlu and Baracuta. Arvind believes this brand will work with the young consumer who is now open to experimenting on fashion. Arvind has three of its own denim brands - Flying Machine, New Port and Ruf & Tuff. It also has a joint venture with US firm VF Corporation that retails Wrangler and Lee that compete with Levi's. Arvind Brands had earlier been pursuing Diesel for a JV but that fell through and Diesel entered the market in a JV „ with Reliance Brands.

Publisher Gregory Alvares Managing Editor: D. J. Gohain* Industry Analyst: Pradeep Ahire Deepak Jadhav Marketing: Arvind Semlani Production: Suresh Adsul Bangladesh: Saleem Samad Resident Editor Apt I-3, Victory Garden, 122/1 Sher-e-Bangla Road, Rayerbazar, Dhaka 1209, Bangladesh Cell: +88-01711-530207 saleemsamad@hotmail.com *Responsible for selection of news under the PRB Act. REGD. OFFICE: 3i Publishing Pvt. Ltd., 2nd floor, Gandhi Mansion, Bomanji Master Lane,Kalbadevi, Mumbai-400002. India. Tel:+91 22 22017013/61/62, Owned, published & printed by Gregory Alvares at 2nd Floor, Gandhi Mansion, Bomanji Master Road, Kalbadevi, Mumbai-400002. Printed at Indigo Press, B-105, 1st Floor, Sussex Industrial Estate, Dadoji Kanddeo Marg, Opp. Sussex Cross Road, Byculla, Mumbai - 400027.

Huntsman emphasizes on sustainable textile production

Azim Group ceases operations of sweater units

Dhaka: The multi-national dyes and chemical company, Huntsman has recently organized an event emphasizing on sustainable innovation for Bangladesh market under the banner "A sustainable innovation customer event" in association with its local representative Swiss Colours. Addressing the meet Rohit Agarwal, Vice-President, Apparel and Home Textiles, Huntsman presented the company's activities and future prospects in Bangladesh. He also elaborated Huntsman's new pioneering technique, which facilitates conservation of over 50 per-

Chittagong: Azim Group has announced to cease the operations of its 4 units located at the Kalurghat industrial zone in Chittagong for an indefinite time after the workers resorted to demonstration over the issue of raising piece rate for manufacturing sweaters. The Group management is apprehending large-scale labor strife over the issue. Recently, around 3,500

cent water and energy while processing, provides a genuine sustainable approach to the mills, brands and retailers to adopt and change the state of affairs related to environment. Huntsman's Avitera SE dyes and Eriopon LT possess an inimitable set of properties which guarantees a remarkable reduction in the processing costs while retaining the superior quality, while greatly increasing the ecological acceptability of the products. These advantages greatly contribute to sustainability in textile processing, Agrawal added. The event was also addressed by a few

Huntsman clients including Viyellatex Group Chairman, David Hasanat. He stressed on eco-friendly and sustainable technique of manufacturing textiles which contributes to directly to ecological, social, economical as well as sustainable industrialization. Hasanat further said that, today as conservation of underground water is under serious threat and the world's fossil fuel is also nearing extinction, the world needs to soon find out or shift to sustainable sources of energy, and focus on conservation of water. Hasanat, also displayed examples of sustainable textile industry and asserted that, Viyelatex Group has already implemented the „ same.

Rieter to construct second plant in Changzhou Changzhou: Rieter Textile Systems is to begin construction on new plant in Changzhou, 4km away from its existing site. The 60,000 sqm facility is intended to supply China's growing demand for textile machinery. The first phase of construction, which will begin with 17,000 sqm of the site, is expected to be finished in 2011. The second phase of the

operation will begin in the Q4 of 2011. The site will manufacture the company's major

products including blowroom machinery, cards, drawframes and combers, as well as ring spinning and rotor s p i n n i n g m a c h i n e s . According to Rieter, the site will be construction using the latest technology, in order to ensure s t a t e - o f- t h e -a r t production and „ quality.

workers, employed in two units of Global Specialized Garments Limited as well as two different units of Savar Sweater Limited, which are under the Azim Group, staged a demonstration. These units are located in the GKL Sweater Complex. The workers have been demonstrating since last several days in order to convince the management „ to fulfill their demands.

RMIT to help adidas in sustainable manufacturing Melbourne: RMIT University has signed US$ 207,000 research contract with the global sporting giant Adidas, as part of a partnership working to advance the sustainable manufacturing of sports shoes and clothing in Asia. A multi-disciplinary research team led by Professor Aleksandar Subic, Head of RMIT’s School of Aerospace, Mechanical & Manufacturing Engineering, will work to identify sustainable manufacturing capabilities & requirements of the adidas group’s suppliers in Indonesia & establish series of improvement projects. Professor Subic said the research aimed to generate new knowledge and practices in the manufacturing of sports footwear and apparel to ensure the ongoing competitiveness and leadership of the adidas Group’s

suppliers internationally. The Sustainable Manufacturing Initiative (SMI) will bring together RMIT researchers in sports technology, sustainable manufacturing, sustainable development, sustainable energy, supply chain management & textiles. Research will be conducted in two phases: first focusing on suppliers in Indonesia, & second involving series of improvement projects aimed at building supplier excellence and implementing new sustainability strategies. William Anderson, Head of Social and Environmental Affairs, Asia Pacific, for the adidas Group, said: “RMIT was appointed following a global search for an institution which would be best placed to support adidas Group in our drive to improve sustainability in our „ supply chain.”

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Apparel News 7

February 2011 X Textile Excellence Bangladesh Edition

More RMG products to get duty waiver from India Dhaka: The Indian Prime Minister Manmohan Singh is likely to pay a visit to Bangladesh towards the beginning of 2011. During this visit, Bangladesh is expected to obtain a dutywaiver for export of proposed 61 commodities to India. The Government of Bangladesh had put forward a proposal to India asking for duty-waiver for various products which involves 54 readymade apparels, in an offer to reduce the trade gap between both the countries. Bangladeshi Commerce

Minister, Faruk Khan also tried to persuade India for the duty-waiver while he paid a visit to India. According to Khan, the announcement of the duty-waiver is expected either during the Indian Prime Minister's visit to Bangladesh or anytime in the coming year. The prospect of the duty-waiver is quite high as both India and Bangladesh had agreed on the stand in October. He further added that the Indian Government has taken 61 commodities into consideration for the duty-waiver which is likely to

benefit both the countries. According to the deal signed in 2007, the country, currently, enjoys zero-duty facility in shipping eight million garment pieces to India. The Prime Minister of Bangladesh, Sheikh Hasina recommended a much wider duty-free proposal for the readymade garments of Bangladesh to India, while she paid a visit to India in January, this year. Bangladesh is also demanding the removal of non-tariff barriers like hidden taxes on „ garments from India.

Knitwear producers & exporters ask for fire station Narayanganj: The knitwear producers and the exporters in Bangladesh recently appealed the government to establish a fire station in industrial region of Fatullah in Narayanganj, so as to ensure the safety of the workers and the factories in the region. There are 221 factories that are functional in the Bangladesh Small and Cottage Industries Corporation (BSCIC) estate in Fatullah, which jointly employ around two million workers. Bureaucratic processes are delaying the setting up of fire station. The Commerce Minister in August 2010 gave an assurance dur-

ing a demonstration that a fire station would be established in the region within next seven days, while the Labour Minister too in November last year gave a similar assurance that the essential facility would be set up within the precincts of BSCIC within a month's time, but none of the promises has been fulfilled till date. Thus, the knitwear producers and exporters have requested the government to take necessary steps to immediately establish the „ fire station.

with energy support on immediate basis, industry sources said. Leading businessmen demanded in a meeting with the senior government officials held at the Prime Minister's Office (PMO), that the government should train more workers

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They further demanded a correct list of the workers who died and got injured in the mishap. Around 31 workers were reported to have been killed in the fire incident. The General Secretary of BNC revealed that if effective measures are taken then over three million jobs can be generated from the biggest export earning sector of the country which is the apparel industry. An effort towards creating an atmosphere of trust between the government of the country as well as workers is required. They further added that around 3.5 million workers were employed in the RMG units and it had received 30 percent new orders over a period of past „ three months.

mental assessments on 250 industrial member units having washing, dyeing & finishing facilities. SEDF is also providing assistance to these factories to generate interactive database of environmental compliance standards. The compliance officers of the various RMG units are provided with training in order to conduct environmental assessments. This will help the associations to observe the scenario regularly. Under the environmental compliance project, a survey is still in progress to find out the best effluent treatment plants (ETP). The environmental assessment is likely „ to be over by July 2011.

Sri Lankan Garment unit to employ 100 youth in first stage inaugurated the new factory established under the guidance of Secours Populaie Francais Organization of France. During its initial stage around 100 youth will get employment in this factory. The new factory is expected to solve the problem of unemployment in the region to a certain degree, particularly by providing employment to the youth residing in the area rehabilitated by the Tsunami housing scheme. „

Japanese apparel imports increase in value for first time in 5 months and ease the procedures at the docks. Other issues like strife in the garment industry, deadlock at the port, overall import-export scenario and new power-gas connections to industries were also discussed during „ the meeting.

Workers body demands higher BKMEA implecompensation against accidental death menting new Dhaka: A workers' organization has appealed for a better compensation in case a worker employed in an apparel factory dies in an accident. Organization has demanded Tk 500,000 as compensation & has also asked for favorable working environment for the workers. The demand was forwarded at a press conference by the Bangladesh National Council (BNC) constituted by the textile, apparel as well as leather workers. The workers' leaders also asked for divisional enquiry into the outbreak of fire at the HaMeem Group factory at Ashulia and for appointing labor representatives in the enquiry committee constituted by the government of Bangladesh.

Dhaka: Environmental compliance survey in the readymade garments (RMG) sector has been initiated towards the close of last week to enhance the production capacity of eco-friendly apparels in the sector and draw more overseas customers. This project has been initiated by the Bangladesh Export Oriented Garments Washing Industries Owners Association (BEOGWIOA), Bangladesh Garment Manufacturers and Exporters Association (BGMEA) and the South-Asia Enterprise Development Facility (SEDF). SEDF is extending all possible assistance to associations to organize environ-

Colombo: External Affairs Minister Prof G L Peiris, while speaking at the inaugural ceremony of the Rangiri Garment Factory at Rangiri Village, Hambantota recently, stated that investment and tourism opportunities have helped in reinforcing mutual relations between Sri Lanka and France. Previously, the External Affairs Minister and the district MP Namal Rajapaksa of Hambantota had together

Govt keeps new industries waiting for gas, power connections Dhaka: The government seems to have failed to keep its promise made to a number of new industries to provide them with power and gas connections to help them start production, as the investors have appealed the authorities to provide them

Environmental compliance survey begins in RMG units

wage structure Narayanganj: Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) revealed that it is going to extend maximum support to it members in executing the new wage structure for workers, in a meeting held recently. The association is firm on ascertaining proper implementation of the new wage structure. All industry owners have been appealed to implement it without any neglect. If the company owners face any major challenge in implementing the same, the association will extend all possible support. One such meeting is likely to be organized again in the Chittagong „ office of BKMEA, shortly.

Tokyo: According to a Japan Textiles Importers Association report on apparel imports, based on Ministry of Finance statistics, October imports increased by 4% from the same month of last year to 190,790 million yen. Quantitatively, imports decreased by 1.6% to 307.98 million units. The value increased for the first time in five months, while the volume decreased for the second consecutive month. Imports from China rose by 3.1% in value to 166,668 million yen, while the quantity decreased by 2.8% to 278.17 million units. As for imports from Asian

countries other than China, imports from Vietnam rose by 14.2% to 8,472 million yen, along with those from Bangladesh by 11.5% to 1,090 million yen, and Indonesia by 21.1% to 1,072 million yen. Imports from ASEAN rose by 15.0% in value to 13,900 million yen, and by 12.2% in volume to 19.87 million units. Imports from Italy fell by 8.8% to 2,351 million yen, while those from France rose by 8.9% to 597 million yen. Imports from the EU decreased by 3.3% in value to 3,900 million yen, but climbed 14.5% in volume to „ 690,000 units.

Li & Fung group firm buys into Oxford Apparel Kowloon: Oxford Industries Inc announced that on January 3, 2011 it consummated its previously announced sale of substantially all of Oxford Apparel, one of its operating groups, to LF USA, a subsidiary of Li & Fung Limited. Net cash proceeds are expected to be in excess of $95 mln after the collection of retained accounts receivable, the sale of in-transit inventory to LF USA & payment of retained liabilities,

transaction expenses and income taxes. The Company's Oxford Golf business and a distribution center in Lyons, GA, which were part of Oxford Apparel, were not included in transaction and will continue to be operated by Company. Oxford Industries Inc is an international apparel design, sourcing & marketing company featuring diverse portfolio of owned and licensed brands and collection of private label „ apparel businesses.


8 Apparel News

Textile Excellence Bangladesh Edition X February 2011

Woodland launches new 'Denim Collection' India: Woodland, the outdoor apparel & footwear brand launched its truly versatile denim collection- a new obsession for the denim lovers available in brighter palette. Woodland has successfully elevated coloured denims as a hot trend this season with this launch. The new denim collection has an array of colours from whites, ash greys, icy blue, dull blue, indigo, blue, super dark indigo, deep blue, navy, sulphur, charcoal to carbon black. The cut and style dramatically lifts up the look and bring slimming and lengthening effect to the legs giving you the perfect figure you've yearned for.

The range has a seam running right through the back that actually lifts and enhances your profile, and at the same time, its super stretch lycra gives the impression of a second skin. Its vivid texture and ability to provide extreme comfort is expected to make it one of most demanding fashion apparels in the country. Woodland products are known for the rugged look and the new collection offers

various colours, super stretch fabrics which offer innovative designs while maintaining comfort and wearability. The transformed washing method for this collection has turned the basic denim into a rugged, hip and trendy piece of workmanship. Skinny denims have gone through a lot of variations in terms of silhouettes, washes and finishes but the truth remains that nothing beats a pair of extremely skinny denims with a basic degree of wash giving it the required fashion content. The new collection by Woodland has stonewash jeans- a worn out and faded look, a rage amongst the

youth. Woodland's new denim collection is available in various cuts and endowed with trim, zippers & embroidery, specially designed to represent the brand image, with all kind of finishes like, brass, antique brass, silver, antique silver, alloy, nickel & many more. Woodland's denim campaign has been shot on U.S route 66, one of the original oldest highway & traditional link established on „ Nov 11, 1926.

Apparel veteran Lana Cain to join Sears Apparel USA: Sears Holdings announced that apparel veteran Lana Cain Krauter will join the company as SVP and president - Sears Apparel. She will be responsible for the oversight, leadership and growth of Sears' apparel business, both in-store and online. "Lana is a great addition to our apparel team," said John Goodman, EVP Apparel and Home. "She brings to the company an excellent track record with brand, product and customer loyalty program development and a demonstrated success in creating and inspiring high performance teams." Krauter is an experienced executive with a wealth of apparel and retail experience. She most recently held the role of president/chief merchandising officer for Bealls Department Stores, Inc., of Bradenton, Fla. Prior to Bealls she was EVP/gener-

al merchandise manager, Men's and Children's Apparel for J.C. Penney Company, Inc. Lana also held senior leadership roles at Goody's Family Clothing, and Sears, Roebuck and Co. where she oversaw the Women's Ready to Wear, Intimate Apparel, Accessories and Import teams. Lana holds a bachelor's degree from The University of Texas at Austin. "I am excited to add such an accomplished leader to our apparel team," added Bruce Johnson, Interim CEO and President. "Under John's leadership, we are transforming our softlines business. Additionally, we're continuing to attract high caliber talent to the company who are focused on satisfying the customer." Krauter will begin on Feb. 1 and be based in the company's San Francisco „ apparel offices.

Bangladeshi knitwear exports to Japan grow 300% Bangladesh: Japanese textile & clothing market is becoming more acceptable for products manufactured in Bangladesh. Especially made in Bangladesh knitwear and terry towels are making new in roads in the Japanese market. While the demand for terry towels is mainly coming from service sectors of Japan like hotels, restaurants and hospitals and the demand for knit wears are from retailers and apparel importers. Interestingly, China has the largest market share in Japan's textile and apparel market with an

invincible 80 percent share. However, Japan is now looking beyond China in the last few months in a bid to cut the dependence on Chinese suppliers due to increase in cost of Chinese products and focusing on south Asian countries like India, Bangladesh etc. Bangladesh being among the most competitive textile and apparel manufacturer in the world, the Japanese have started eyeing towards Bangladeshi textile and apparel suppliers. Knitwear manufacturers have been enjoying the influx of Japanese buyers

this year according to an official from Bangladesh Knitwear Manufacturer Exporters Association (BKMEA). Statistics indicates that Bangladesh's overall shipments from the knitwear sector grew by 40 percent in the first four months of current fiscal while shipments to Japan shot up by nearly 300 percent in the last one year. This indicates that BKMEA's current efforts to diversify to other markets than the traditional EU and US markets have been showing positive results. „

JC Penney tops in Customer Service for third consecutive year Texas: For the third consecutive year, JC Penney Company, was recognized for its industry-leading customer service by ranking No. 1 among department store retailers in the Customers' Choice survey released by the NRF Foundation and American Express. The positive results signify the impact JCPenney associates have made with customers as a result of the Company's CustomerFIRST initiative. Launched in 2008, CustomerFIRST is a comprehensive customer service training program that empowers every associate to make customers their top priority & provide an easy, exciting & engaging shopping experience to more than half of America's families who shop at JCPenney each year. “Customer service is a key point of differentiation for JCPenney, and earning this honor for the third consecutive year validates the

progress we have made toward our vision of becoming America's favorite shopping destination” said Myron Ullman, chairman & CEO of JCPenney. “We know there is a correlation between highly satisfied customers and increased sales, and our 150,000 associates continue to work every day to build deeper, more enduring relationships that give customers the confidence to shop with us more often and spend more when they do.” This year's Customer's Choice results come on the heels of JCPenney associates earning their highest-ever overall satisfaction scores from customers during the Company's strong Christmas holiday shopping season. The Company tracks its service performance by inviting customers to fill out online surveys and has seen survey scores for overall satisfaction increase by more

than 25 percent over the past two and a half years. JCPenney knows that highly satisfied customers and highly engaged associates go hand-in-hand, with the Company earning its highest level of associate engagement in Company history at 81 percent in 2010. With a focus on retaining and recruiting the best talent in retail and providing associates the tools they need to do their job, JCPenney has created a culture that empowers associates to make customers their first priority. Results were announced Jan. 11 during the National Retail Federation's 100th Annual Convention and Expo in New York City. The survey, which polled 9,291 consumers in September 2010, certifies JCPenney as the unparalleled leader in customer service among department „ stores.

China to construct 'China City Complex' in Thailand Zhejiang: China had entered into a free trade pact with the Southeast Asian countries in January 2010 pursuant to which the Chinese traders enjoy a zero or low duty access in these countries for their exports. The country now intends to construct a vast commercial complex China City Complex in Thailand with an investment of $1.5 billion. The complex would be set up on an area of 5.4 million square-feet that is 500,000 square-meters in the fringes of Bangkok, and is believed to house over 70,000 Chinese traders. Construction of this complex is planned to start from March 2011 and is scheduled for completion within 18

months thereafter. Various China made items like ornaments, household products, garments, etc. would be sold at the complex. Once the complex starts, the Chinese traders would be able to sell their goods to people from different parts of the world through Thailand, which would help them to save the heavy duties that they need to pay on their exports to many of the countries, particularly western countries like the Europe and the US. The initiative is also seen to help China to cut down its trade deficit with these countries, which touched $16.8 billion with the U.S. and $13.6 billion with the EU in November, 2010. By and

large the global recession has not had much effect on China's trade which kept registering healthy growths. Also, driven by the rise in the sales to other developing nations which are reviving from the effects of the economic slump at a greater pace than the EU and the US, China's exports for the month of November 2010 registered a rise of 34.9 percent to touch $153.3 billion from that registered a year ago. But then the extra stocks lying with the EU and the US, the major importers of Chinese items have become a cause of concern and are thus inducing the traders to search newer ways to infiltrate in these „ markets.

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Processing News 9

February 2011 X Textile Excellence Bangladesh Edition

Richard Hough debuts enhanced Resilio roll covering technology Lancashire: Richard Hough Ltd. (RHL), a manufacturer of calender rolls, has announced the latest version of its Resilio roll covering technology. The original Resilio roll concept, developed in 2008 by RHL in partnership with Just Rollers Plc, combined RHL's mechanical squeezing and dewatering equipment with specially developed dual-layer construction combining the features of hard & soft elastomer coverings. These roll offers 30-40 % improvements in water expression on both knitted and woven cotton and manmade fiber fabrics over conventional elastomer roll cov-

ers, and saves up to 40,000 euros per year in costs. In the new version, RHL has technically enhanced the

hardness and resilience of Resilio's dual-layer construction to offer improved efficiency and performance gains. According to the company, the dewatering results are double those of conventional hard rubber rolls, thereby cutting customers' „ energy costs in half.

OEKO-TEX updates criteria for testing textiles Zurich: The International Oeko-Tex Association, has updated its criteria and limit values for use when testing textiles for harmful substances in accordance with the Oeko-Tex® Standard 100 product certification process.

Short chain (C10 to C13) chlorinated paraffins and tris (2-chloroethyl) phosphate will be included explicitly in the list of banned flameretardant substances and

also will be listed with the other banned residual chemicals in the list of criteria, because both substances are sometimes also used for other applications. The association has set a standard limit value of 90 parts per million (ppm) for total lead content across all four Oeko-Tex product classes. This limit is considerably lower than the U.S. Consumer Products Safety Improvement Act's current limit of 300 ppm or the 100ppm limit as of August 2011 for babies' and children's articles. Testing for extractable heavy metals using controlled sweat solution will continue to be the most important requirement of the Oeko-Tex Standard 100, because Oeko-Tex reports that test method is more relevant with regard to the potential health risks from undesirable heavy metals in textile products than testing „ for total lead content.

Huntsman TE registers new dye structures in Colour Index Mildland: The Society of Dyers & Colourists (SDC) and American Association of Textile Chemists and Colorists (AATCC), joint publishers of the Colour Index, announced that Huntsman Textile Effects (TE) has registered its new products with the publication. Colorants are identified worldwide by their Colour Index (CI) Generic Names. New names are assigned only for new structures and may be used to identify dyes and pigments from a variety of manufacturers. Huntsman recently presented 3 of its newest products for registration. All 3 were recognized as unique structures and issued new generic names and numbers. By agreement with Huntsman TE the structures

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are held confidentially by the Colour Index and will not be published. X Avitera Yellow SE is now also CI Reactive Yellow 217 X Avitera Red SE is CI Reactive Red 286 X Avitera Deep Blue SE is CI Reactive Blue 281 According to Huntsman representative, "Huntsman TE has applied for the Colour Index numbers for their new Avitera SE reactive dye range, as they recognize the importance to have the Colour Index as a guide for available dyes in the world." Only dyes registered with Colour Index should use the CI designation. Dye users can check CI to ensure they are purchasing dyes that „ have been registered.

DuPont to Acquire Danisco for $6.3 Billion Wilmington: DuPont recently announced it had entered into a definitive agreement for the acquisition of Danisco, a global enzyme and specialty food ingredients company, for $5.8 billion in cash and assumption of $500 million of Danisco net debt. Upon closing, this transaction would establish DuPont as a clear leader in industrial biotechnology with scienceintensive innovations that address global challenges in food production and reduced fossil fuel consumption. Danisco is a premier company, a long-time successful partner of DuPont and a proven innovator committed to sustainable growth,” said DuPont Chair and CEO Ellen Kullman. “Danisco has attractive, market-driven science businesses that offer clear synergies with DuPont Nutrition & Health and Applied BioSciences. This

transaction is a perfect strategic fit with our growth opportunities and will help us solve global challenges presented by dramatic population growth in the decades to come, specifically related to food and energy. In addition, biotechnology and specialty food ingredients have the potential to change the landscape of industries, such as substituting renewable materials for fossil fuel processes and addressing food needs in developing economies, that will generate more sustainable solutions and create growth for the company,” Kullman said. The acquisition is expected to be financed with about $3 billion in existing cash and the remainder in debt. The transaction is expected to close early in the second quarter. “Danisco has two well-positioned global businesses that strongly complement our current biotechnol-

New Standard Detergent Options for Textile Quality Testing North Carolina: Standard reference detergent is a necessity for reliable, reproducible textile testing. Beginning with the 2011 AATCC Technical Manual, four additional test methods will include the option to use standard liquid detergent. AATCC Research Committee RA60, Colorfastness to Washing Test Methods, has approved the addition of 2003 AATCC Standard Liquid Detergent as an alternative to 1993 AATCC Standard Reference Detergent powder in the following methods: X Test Method 61 Colorfastness to Laundering: Accelerated (with or without optical brightener) X Test Method 172 Colorfastness to Powdered Non-Chlorine Bleach in Home

Laundering (without optical brightener) X Test Method 188 Colorfastness to Sodium Hypochlorite Bleach in Home Laundering (without optical brightener) X Test Method 190 Colorfastness to Home Laundering with Activated Oxygen Bleach Detergent: Accelerated (without optical brightener) Methods previously incorporating the liquid detergent option: X Test Method 88B Smoothness of Seams in Fabrics after Repeated Home Laundering X Test Method 88C Retention of Creases in Fabrics after Repeated Home Laundering X Test Method 124 Smoothness Appearance

ogy capabilities, R&D pipeline, and specialty food ingredients, a combination that offers attractive longterm financial returns. This also would create new opportunities across other parts of the DuPont portfolio, including traditional materials science offerings,” Kullman said. Danisco is a leading technology-driven organization, with outstanding research and application development capabilities. The company has specialty food ingredients, including enablers, cultures and sweeteners, that generate about 65% of total sales; and Genencor, its enzymes division, represents 35% of total sales. Danisco and DuPont are already joint venture partners in the development of cellulosic ethanol technology. Danisco has nearly 7,000 employees globally with operations in 23 „ countries. of Fabrics after Repeated Home Laundering X Test Method 143 Appearance of Apparel and Other Textile End Products after Repeated Home Laundering Different detergents produce different results in colorfastness, dimensional change, and other important quality characteristics. To compare fabric performance, all samples must be laundered with the same detergent. Commercial detergent products are constantly changing; the detergent bought today may not be available tomorrow. Even the same formula may vary from lot to lot. AATCC Standard Reference Detergent ensures the same chemistry and strict tolerances no matter when or where testing is performed. Now, the confidence of using Standard Reference Detergent and the convenience of a liquid formulation for more test methods are „ available.

Aqua-Chem & Enviro-Solutions provide dye-free water treatment Florida: Aqua-Chem Inc, a complete water purification solution provider, & its partner, Enviro-Solutions, an industrial water treatment equipment & chemical firm, announced that initial results from an innovative pilot project with high-volume U.S. carpet manufacturer demonstrate that it is both practical and economically feasible to simultaneously remove dye and other contaminants from wastewater used in largescale carpet manufacturing. Project, which began few days ago, shows that potable quality water can be produce with maintain 80% recovery rate from wastewater that is typically sent to sewers after the manufacturing process, while also save

valuable energy resource. David Gensterblum, President & CEO, AquaChem, said, "We believe this is the first time that dye separation and water purification have been successful as one-part process for highvolume manufacturing facility. While the process employed is major step forward in water conservation for the carpet industry, it also has wide applications for manufacturers in other water intensive industries. With the ability to recycle at least 80% of their wastewater, manufacturers will conserve millions of gallons of water per year, taking green manufacturing to new level." Hub Brown, Sales Engineer of Enviro-Solutions,

LLC, said, "The average industrial plant wastes millions of dollars every year in operating costs for water, wastewater, and water treatment chemicals and energy dollars to create the enormous amount of heat needed within the manufacturing process. But it's not just a cost savings - the process we put in place with Aqua-Chem addresses need of manufacturers to be more environmentally friendly, and supports both regulatory compliance and the consumer's desire for green, responsible manufacturing processes." Aqua-Chem and EnviroSolutions said that they are preparing to take the process to market and that their pro„ duction site is ready.


10 Weaving Mr. Pradeep Ahire Industry Analyst, Textile Excellence pradeep@TextileExcellence.com

D

emands for quality yarns used by weavers have increased steadily over the years. Tough global competition, however, usually prevents turning yarn quality improvements into higher sales prices. And today's era of modern high performance weaving machines requires an absolutely constant yarn quality. The inferior quality yarns not only affect the fabric quality but can seriously endanger the long term business success of weaving and knitting mills. The quality of yarn that is used for fabric production for export purposes is better so that the fabric has fewer faults. Derived by the demand for export markets, awareness is already increasing to replace the existing shorter width power looms with wider width auto or shuttle-less looms. Subsequently, the yarn requirement for different shuttleless looms also differs owing to the difference in the expected quality of output. The quality of yarn used on shuttleless looms is the prime criteria considered for quality weaving. The machine parameters to be controlled for an optimised preparatory operation have been dealt with respect to winding, warping and sizing operations. Guidelines for machine stoppages corresponding to warp and weft breakages in weaving are considered as important in deciding the efficiency of a shuttleless weaving shed. For the success modern shuttleless looms, it becomes inevitable to go for quality yarn and optimization of the preparatory operations prior to weaving. A better quality yarn leads to a quality warp and sized beam which consequently gives an efficient weaving operation both qualitatively and quantitatively. The parameters to be checked as regards yarn quality, winding of warp and weft yarns, warping and sizing are dealt with in some detail in the following sections. Yarn Quality Requirements With ever-increasing weaving speeds, the requirements on weaving preparation are also getting more rigorous. The weft yarns are not subjected to the same type of stresses as are the warp yarns and thus are easily prepared for the weaving process. Depending on the spinning method, the weft yarns may not be prepared at all, but rather taken straight off the spinning process and transported to the weaving process. Tension on the warp on a

Textile Excellence Bangladesh Edition X February 2011

REQUIREMENT OF YARN QUALITY IN WEAVING

high speed shuttleless weaving machine is higher than that on conventional loom. Consistency of single end strength, C.V. of count and elongation is essential. Quality of yarn should be at least within 25% Uster limits which means the quality is among the best 25% of the mills in the world. Normally shuttleless weaving machine works three to four times faster and if the quality of warp remains the same, warp breaks will increase three to four times resulting in low production. Yarn should be more even and the following parameters of yarn are to be critically reviewed; C. V. of count, single thread strength, C. V. of single thread strength, imperfections per 1,000 meters such as thick places, thin places, and neps. Hairy yarn will not be suitable in air jet weaving as it will misdirect the weft insertion. Warp & Weft Preparation It is absolutely necessary that machine stoppage rate per 10,000 warp ends and 1,00,000 picks should be considerably reduced for successful installation of shuttleless looms. Because of much smaller shed size, reed sweep and abrasion time, the warp preparation standards acceptable for automatic looms will lead to less warp breakages if the same yarn is used on high speed looms. Yarn imperfections which would pass into the cloth on an automatic loom fail to do

so on a machine like projectile loom because of the less flexible reed, more detrimental characteristics of beat-up, more abrasion cycles because of high speed. Winding All medium and fine counts and all blended yarns with polyester components should be wound on automatic winding machines like Autoconer, Murata, etc. In choosing optimum clearing settings, indiscrimate removal of thick places is not desirable since removal of each fault is replaced by another fault namely a knot. Knots act as sharp instruments on the adjacent threads, besides being responsible for peak tensions generated during weaving. Tail ends of knots come in the way of clear shed formation and can be a cause of multiple breaks. Hence, each thick place is to be assessed with respect to its length, and only objectionable faults may be removed. The size of the tail ends of knots should be small. The knotter is to be selected based upon the yarn number. A spliced yarn gives good results. It would be desirable that a splicer is provided instead of a knotter on the winding machine to give good results and to get rid of all the disadvantages of knots. A large no. of automatic winding machines are equipped with knot / splice tester which ensures 90-95% prefect joints.

Warping At warping, the goal should be to avoid missing ends. Number of thread breakages should not exceed seven per 10 million meters. This can be achieved by ensuring a top quality yarn package and by following the warping process parameters mentioned below: X Precise creel alignment X Reliable stop motion on creel and on warping drum, so that broken ends are traceable for knotting. X Minimum wobbling of warping beams. X Uniform selvedge with good flanges. X Yarns should be preferably warped on spindle driven machines to avoid thermal damage due to abrasion. Warping machines such as Benninger or Hacoba are preferable. With drum driven warpers such as the BC Warper, the following precautionary measures are to be taken: A) Frictional drum should be kept in a polished state. B) Brake should be very efficient. C) Aluminium cast flanges should be used to get faultless selvedges. D) Breakages rate should not exceed 0.3~0.5 breaks per 1000 m / 500 ends. E) For wider width looms, wider warping machines are preferred. Sizing The

process

of

sizing

greatly influences the performance of the shuttleless weaving machine. The concept of single end sizing is more ideal for yarn prepared for all shuttleless weaving machines particularly wider width machines with a large number of ends. Single end sizing facilitates proper encapsulation of size on the yarn and reduces hairiness particularly of blended yarns resulting in a very clear shed formation which is a must for shuttleless weaving. Double size beams are recommended to avoid overcrowding. Weft Preparation Weft insertion rate is high and unwinding is intermittent on shuttleless weaving machines. Hence it is necessary to have a hard wound package. It is essential to have anti patterning device to prevent slough-off on the fabrics. Smaller core diameter of package increases the unwinding tension and enhances the possibility of high weft breakage. Weft accumulators are to be used on high speed weaving machines when the weft insertion rate is above 1000 m/min. The parameters and machinery in preparatory for the conventional shuttle looms should be thoroughly assessed and suitably modified or replaced for their performance for the efficient functioning of a shuttleless weaving shed. The above factors play a deciding role in giving quality weaving and better returns thereof. Yarn quality requirement for different shuttleless looms The processes of weaving have undergone many developments due to the proliferation of high-speed production technologies. In today's market-based economy, the scale and speed of spinning and weaving operations are decisive factors. The quality of yarns and warp preparation processes, such as winding, warping, and sizing, are prerequisites for the success of newer high-speed weaving technologies. To keep pace with changing weaving technologies, the requirements of yarn quality have also changed. Projectile Loom: It is sometimes called missile loom as the picking action is done by a series of small bullet like projectiles which hold the weft yarn and carry it through the shed and then return empty. All the filling yarns are inserted from the same side of the loom. A special tucking device holds the ends of the wefts in place at the edge of the cloth to form the selvage. This loom needs smooth, uniform yarn which is properly sized in order to reduce friction.

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Weaving 11

February 2011 X Textile Excellence Bangladesh Edition

Projectile loom can produce up to 300 ppm and is less noisier then the shuttle loom. Rapier Loom: Rapier loom comes in many types. Early models of it use one long rapier device that travels along the width of the loom to carry the weft from one side to the other. Another type of rapier loom has two rapiers, one on each side of the loom. They may be rigid, flexible or telescopic. One rapier feeds the weft halfway through the sheds of warp yarns to the arm on the other side, which reaches in and carries it across the rest of the way. Rapier looms are very efficient and their speed ranges from 200 to 260 ppm. These looms can manufacture a variety of fabrics ranging from muslin fabric to drapery fabrics and even upholstery fabrics. Water Jet Loom: In it, a pre measured

length of weft yarn is carried across the loom by a jet of water. These looms are very fast with speeds up to 600 ppm and very low noise. Also they don't place much tension on the filling yarn. As the pick is tension less, very high quality of warp yarns are needed for efficient operation. Also, only yarns that are not readily absorbent can be used to make fabrics on water jet looms such as filament yarn of acetate, nylon, polyester, and glass. However, it can produce very high quality fabrics having great appearance and feel.

through shed. However, too heavy yarns also can't be carried across the loom by air jet. Yarn Conditioning Moisture in atmosphere has a great impact on the physical properties of textile fibers and yarns. Relative humidity and temperature will decide the amount of moisture in the atmosphere. High relative humidity in different departments of spinning is not desirable. It will result in major problems. But on the other hand, a high degree of moisture improves the physical properties of yarn. Moreover it helps the yarn to attain the standard moisture regain value of the fiber. Yarns sold with lower moisture content than the standard value will result in monetary loss. Therefore the aim of yarn conditioning is to provide an economical device for supplying the necessary moisture in a short time, in order

Air Jet Looms: In the air jet weaving looms, a jet of air is used to propel the weft yarn through the shed at speeds of up to 600 ppm. Uniform weft yarns are needed to make fabrics on this loom. Also heavier yarns are suitable for air jet looms as the lighter fabrics are very difficult to control

to achieve a lasting improvement in quality. In these days there is a dramatic change in the production level of weaving and knitting machines, because of the sophisticated manufacturing techniques. Yarn quality required to run on these machines is extremely high. In order to satisfy these demands without altering the raw material, it was decided to make use of the physical properties inherent in the cotton fibers. Cotton fiber is hygroscopic material and has the ability to absorb water in the form of steam. It is quite evident that the hygroscopic property of cotton fibers depends on the relative humidity. Higher the humidity, more the moisture absorption. The increase in the relative atmospheric humidity causes a rise in the moisture content of the cotton fiber, following an Sshaped curve. The relative humidity in

turn affects the properties of the fiber via the moisture content of the cotton fiber. The fiber strength and elasticity increase proportionately with the increase in humidity. If the water content of the cotton fiber is increased the fiber is able to swell, resulting in increased fiber to fiber friction in the twisted yarn structure. This positive alteration in the properties of the fiber will again have a positive effect on the strength and elasticity of the yarn. Benefits of Yarn Conditioning for Weaving: X Upto 15% fewer yarn breaks due to greater elongation X Less fly, resulting in a better weaving quality X Increased strength X Increased take-up of size, enhanced level of efficiency in the weaving plant X Softer fabrics. „

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12 Knitting

Textile Excellence Bangladesh Edition X February 2011

DESIGNING AND MAKING OF SWEATER Deepak Jadhav Industry Analyst deepak@textileexcellence.com

S

weater design is a specialization of fashion design in which knitted sweaters are designed to fulfill certain aesthetic, functional and commercial criteria. The designer typically considers factors such as the insulating power of the sweater (and its resulting warmth for the wearer); the fashion of its colors, patterns, silhouette and style lines, particularly the neckline and waistline; the convenience and practicality of its cut; and in commercial design, the cost of its production and the profitability of its price point. Criteria The aim of sweater design is a sweater that fulfils certain criteria. The primary criterion is that its intended wearer wants to wear it and, in case of commercial sweater design, is willing to buy it at a commercially feasible price point. General secondary criteria include X The insulating power, material and breathability of the sweater should make its intended wearer physically comfortable X The sweater should be appropriate for occasion in which it will be worn X Makes its intended wearer feel fashionably attractive To satisfy these secondary criteria, the designer has several tools at their disposal, such as yarns, colors, patterns, textures, necklines, hemlines, sleeve shapes, style lines, pockets & embellishments, as well as the fit of the garment to its intended wearer, the silhouette. X For commercial sweater design, the production of the sweater must also be inexpensive, lest the price point be too high and make the sweater undesirable. This is generally done by simplifying the design so that it can be made by machine; more complicated com-

mercial designs are generally hand-knit in pieces that are then stitched together. For example, the separate pieces of the hand-knit sweaters found in stores are generally knit and assembled in different villages in China. Despite the wealth of design techniques & studies of successful designs, the primary criterion (that the sweater be desired) is not always achieved, often due to factors beyond the designer's control including serendipity.

Functional Role as Criterion Sweaters are worn in various circumstances. For example, while some sweaters are worn at fancy dress occasions, others are worn to work, to religious services, in sporting or outdoors events such as hiking and camping. Similarly, the choice of a sweater can vary with different climates and different seasons, even with different times of the day. The sweater designer will generally target a particular occasion and temperature, e.g., a bulky, cabled, longsleeved woolen sweater for camping versus a refined, elegantly simple, shortsleeved cashmere sweater for white-collar work. Comfort criterion Comfort is paramount; the sweater should make the wearer feel at ease, in the most general sense. The temperature should be right, the fabric should "breathe" and should not irritate the skin. The sweater should hang right and not need constant adjustment; It should fit well and allow for customary motion without binding (e.g., at the armholes). Finally, a sweater should not make the wearer feel uncomfortable because of its "cut" (e.g. showing bra straps or too much cleavage) or general style (e.g., colors/patterns that the wearer feels are inappropriate). Fitting a sweater The fit of a sweater

affects its comfort, its attractiveness and, sometimes, its practicality (e.g., dangling sleeves can fall into food or get caught on hooks). The simplest sweaters (drop sleeve, cylindrical) require six measurements: X Circumference around the bust/chest (widest point) X Circumference (or width) of the neck X Under-arm length (armhole to sleeve-cuff hem) X Circumference of the arm at the sleeve-cuff hem X Back length (vertical distance from back of the neck to lower hem) X Armhole depth (vertical distance from bottom of armhole to lower hem) A few more measurements usually produce a well-fitted sweater: X Circumference at the lower hem X Over-arm length (shoulder to sleeve-cuff hem) X Circumference of the upper arm near the armhole X Bust height (vertical distance from back of the neck to bust line) X Shoulder width (horizontal distance between bony shoulder points, measured across back) For a more tailored look, even more measurements are necessary X Slope of the shoulders (vertical distance from base of neck to shoulderpoint line) X Neck-shoulder length (horizontal distance from base of neck to shoulder point) X Circumference at the waist, the point of largest inward or outward curvature X Waist height (vertical distance from back of the neck to waist line) Ideally, these measurements will be taken directly from the intended wearer, since bodies are idiosyncratic and these measurements may vary independently of one another, e.g., the bust measurement does not determine the waist or hip measurements, just as the height does not determine the arm length or shoulder

width. Alternatively, the body measurements may be estimated from clothing that fits the wearer well. As a last resort, standard measurements such as EN 13402 or US standard clothing sizes may be used. Of course, a sweater need not conform exactly to the wearer's body. Ease may be introduced to make the sweater larger than the body (oversized), typically by increasing the circumference measurements by 2-6 inches. Different amounts of ease can be introduced at different points to give the sweater a distinctive silhouette. For example, a "Gibson-girl" sleeve is produced by adding much ease to the upper arm and none to the lower arm, whereas the reverse is true for "bell" sleeves (also called "bishop" sleeves). Similarly, the bodice can fit loosely in the bust and tightly at the waist, or the reverse. Negative ease (i.e., subtracting from the body measurements) is also possible to achieve a very closefitting look, but more than 2 inches is not recommended. By making the sweater match the desired measurements, an excellently fitting sweater can be made. The width of a knitted piece at a given height should equal the corresponding circumfer-

ence; for example, if the desired bust circumference is 38", then the front or back width at that height should be 19" each. The width of the upper sleeve (just before the sleeve cap, if any) should likewise equal the desired circumference of the upper arm. Having determined the size and shapes of the knitted pieces, the number of stitches in a row is given by the desired width multiplied by the knitting gauge (e.g., 5 st/inch). Similarly, the number of rows in a column may be determined by multiplying the desired height by the vertical gauge. Shaping The human body has curvature, but woven fabric is flat and has little elasticity. To produce curvature in a smooth (unruffled) woven fabric, it is necessary to subtract or add wedges of fabric. Positive curvature (cupping, such as is needed at the bust point or over the rear) is produced by subtracting a wedge (a dart) with the point of the dart almost at the point of desired maximum curvature. The greater the angle of the wedge, the greater the local curvature. (The orientation of the dart is unimportant for the curvature, so it can be chosen to accentuate a style line of the

Fig 1: Simple sweater pattern with drop shoulders & cylindrical torso.

Fig 2: Sweater with tapered torso & set-in sleeves.

Fig 3: Sweater with a waistline and set-in sleeves.

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Knitting 13

February 2011 X Textile Excellence Bangladesh Edition

will retain its shape (elastic yarns like wool are better than non-elastic yarns like cotton or silk).

garment.) Similarly, negative curvature (ruffling/saddleshaping, as at a skirt hem, lower back or under the bust) is produced by adding a wedge (a flare). Although the base of individual wedges usually lies on a seam, sometimes wedges occur in pairs (diamonds) that are independent of the seams. Subtracting a diamond-shaped dart produces positive curvature at the outer points of the diamond, and negative curvature at the middle points that are brought together (good for the bust or back). Conversely, adding a diamond-shaped gusset produces negative curvature at its tips and positive curvature at its middle (useful in designing stuffed animals). Sometimes, the sharp, angular edges of the wedges are softened to form continuous princess seams. Since knitted fabric is generally elastic, it conforms readily to the wearer's body without shaping. However, some shaping may be necessary when the knitted fabrics are unusually stiff (e.g., thick cable designs or heavily overstitched designs) or in regions of high curvature (e.g. sock heels). Ironically, shaping is much easier and

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less obvious with knitted fabrics than with woven cloth. Instead of cutting out wedges and sewing the edges together, knitters can add or subtract stitches; work short rows; or, most subtly of all, change the needle size to produce smaller/larger stitches in the desired "wedge" region. Choosing the yarn The choice of yarn affects the comfort of the sweater, since it affects its warmth, weight and ability to "breathe" (air exchange). Some yarns will also produce itching or even allergic reactions in some wearers. The yarn affects the bulk and drape of the knitted fabric, as well as the visibility of stitches. Complicated stitch patterns are best seen with a smooth, highly spun yarn and may be invisible with "furry" yarns such as mohair or novelty yarns. The washability of yarn affects its practicability. Thus, sweaters knitted for young children are usually knitted in acrylics, which are light in weight and washable. The yarn will also determine the lifetime of the sweater (in general, highly spun yarns suffer less wear with time) and how well it

Choosing colors The choice of colors is critical to the design of a sweater. The simplest choice is to use multiple shades of a single color (e.g., various shades of blue), perhaps accented with a contrasting color (e.g. flecks of yellow). The arrangement of shades on the sweater can have a significant visual effect, due to the principle of chiaroscuro; dark shades tend to recede and be smaller, whereas light shades advance and seem larger. For example, vertical stripes with a light color in the middle and dark colors on the sides have a slimming effect. Psychologically, bright colors tend to be associated with straightforward, innocent or extroverted personalities, whereas darker shades are associated with more thoughtful, experienced and introverted personalities. The "temperature" of a color also affects its perceived depth. Warm colors have red or yellow tones (including orange and yellow-green) and are associated psychologically with warmth and energy. Cool colors have more bluish undertones (including purples, aquas and greens) and are associated psychologically with serene, calm personalities. Warm colors tend to advance relative to cool colors, when both are presented simultaneously. Contrasting colors may be chosen in various ways. A common choice is to take a complementary colors from one of the several color wheels (e.g., blue and orange, green and red), or to choose a pairing that occurs in nature, e.g., yellow & red. Choosing shapes The designer has many choices for how to shape the sleeve length and cap, waistline/hemline and neckline/collar; these various choices and their visual effects are described in their individual entries. The overall shape (silhouette) of the garment is defined by the ease introduced at various points, as described above under "Fitting". In addition, sweater may have ornamental lines curves, even images. In general, these lines are chosen to achieve a balanced look; for example, well-chosen style lines can help compensate for body lines considered too long or too angular or too short or too rounded. However, visual effects may be idiosyncratic, and the knitter is encouraged to experiment. Choosing an overall pattern The scale of the overall pattern relative to the size of

the whole sweater is a key variable in the "look" of the sweater. Large overall patterns eliminate the need for accent patterns (see next section) but may be too bold for some wearers. A small, fine pattern makes an excellent background for accent patterns, but may not be visible with a particular yarn, or may be too retiring for some wearers. Choosing accent patterns A sweater done uniformly in the same pattern overall is relatively simple and understated, which may be the desired effect. However, it is more usual to decorate the sleeve cuffs and either the neckline or the lower hemline with an accent pattern. Accent band can be rather wide (often 1/3 of the total length) & its boundary can be straight or wavy/serrated. Smaller boundaries (such as collars, tops of pockets, central seam in cardigan) may receive special ornamentation as well, e.g., cabling along its edges. Embellishments There are many types of ornamental embellishments that can modify the overall look of the sweater. Collars and lapels are perhaps the most visually obvious embellishments. They frame the face, neck and shoulders, and complement the neckline and armhole lines. The choice of closures is an important practical consideration and can also help define the sweater's style. Buttons & zippers are the most common choices for sweaters, but frogs, ties & belts are also seen. Shoulder pads & other shaping devices are uncommon, but can be included to define a particular silhouette. The fabric of the sweater can be ornamented with various textures, such as gathers, ruffles, pleats, ruching & shirring. Ornamental patterns can be added using beads, buttons, sequins, bobbles, ribbons & knots, as well as appliquĂŠ or cordwork. Overstitching (also known as

Swiss darning) & other embroidery techniques allow for many visual effects that can’t be made with normal knitting, e.g., circle of successively interlocking stitch. Sweater Manufacturing Process At the initial stage, different types of yarn have been brought from local and international yarn manufacturer, and the accessories are collected from backyard-linkage industries of local and foreign origin. At the next step, raw package of yarns are rolled up for giving those suitable revolving shape and sent those to Yarn Distribution (YD) section, where every spin of yarns has been properly weighted, and specific amount of spindled yarn has been allocated to the Knitting section. Every part of sweater is knitted in the knitting section and passed them off First Inspection to get those checked whether each part is properly knitted or not, and to get confirmed if any yarn is wasted. After First Inspection, each part of the sweaters is linked up in the linking section and thoroughly checked in the Second Inspection and then to light checking with a view to ensuring if any hole is present in the sweater. Accurate measurement is tested in the Third Inspection; if it is found up to the standard, the sweaters are passed through the labeling section, where neck, care and size label are attached. Steam ironing is performed after labeling and sent them in the quality control section, where each part of sweater is checked carefully, thus if the sweaters are found not up to the standard, they are sent back to the Third Inspection section for mending the loopholes. Whole process of knitting is being examined at final inspection section, and passed them for packing or folding. After packaging, whole lots are transferred into the warehouse and keep them standby for shipping. „ Fig 4: Process Flow of Production of Sweater


14 Market Intelligence Report

Textile Excellence Bangladesh Edition X February 2011

Price Movement of major products in the Bangladesh Market in US$

Jan 15

(Price/Kg) 100% Cotton Carded Yarn 24s

5.45

30s

5.5

34s

5.7

40s

6.6

100% Cotton Combed Yarn 40s

6.1

60s

-

100% Viscose Yarn 24s

5.25

30s

5.3

34s

5.5

40s

6

Fabruary 2011

Page: 14 & 15

 Cut here to file

Polyester Products

Highlights of Latest Report

30s P/V 30s P/C (60% P: 40% C)

5.3

30s P/C (20% P: 80% C)

5.35

PSF 1.4 Den

2.05-2.10

VSF 1.5 Den

3.3

Polyester Staple Fiber (PSF) In December 2010, polyester staple fiber prices (PSF) were stable to up. In the first half of the December, sentiment of PSF market was stagnant, as buying interest remained limited. Consumers were cautious about purchasing feedstock, so most trades were done by small parcels sporadically. In the second half of the December, PSF market saw better atmosphere. Prices slid down slightly because players lacked confidence. Later in

-

DTY 80/32 Den

3.2

DTY 100/32 Den DTY 125/32 Den

3

DTY 150/32 Den

2.8

Price Movement of major products in the Indian Market in ` Products

Date

Date

Var.

(Price/kg)

Dec 28

Jan 15

% 2.50

PFY

90

92

2.2K

POY 250/34

85

87

2.4K

some anti-pilling products in Thai Acrylics were offered at US$ 3,200/ton. With firm ACN prices, producers' offers will be stable to firm for next month. Nylon Filament Yarn (NFY) As Caprolactam (CPL) prices slightly picked up to US$2,900-2,910/ton and global nylon chips producers slightly raised their offers to US$3,120-3,150/ton, cost pressure increased somewhat on nylon fiber producers. 3.1

Polyester Staple Fiber (1.5 Den) 2.09

3.00

94

95

97

2.1K

FDY 100/48

90

92

2.2K

3

1.90

2.2K

1.80

1.70

2.85

1.50

92

80 Tex*

102 94

2.0K

100

102

2.0K

150 intermingled*

90

92

2.2K

150 Tex*

88

90

2.3K

92

94

2.2K

50 Flat*

118

120

1.7K

75 Flat*

80

82

2.5K

1.4 Den

93

95

2.1K

1.2 Den/ 1.0 Den

96

97

2.0K

1.2 Den

135

140

3.7K

1.5 Den

133

138

3.8K

PSF

Acrylic*

Viscose 1.2 Den

140

144

2.9K

1.4 Den

137

140

2.2K

41000

0.7K

LRA-ICS-105#

39500

40300

2.0K

40900

41200

0.7K

41800

42000

0.5K

42000

43500

3.6K

43300

45500

5.1K

52300

58500

11.9K

H4/ Mech1 ICS-105# Shanker 6 ICS-105# Bunny/Brahma - ICS-105# MCU-5-ICS106# DCH-32ICS107#

# Standards by CAI (Cotton Association of India)

2.75

Nov

2.7

Dec

Jan

Feb

Mar

Apr

May

June

July

Aug

Sept

2011

Acrylic Staple Fiber (1.5 Den)

2.650

5.6K

170

6.3K

30s P/V

165

175

6.1K

2.65

2.400

2.34

Nov

Dec

Jan

Feb

Mar

Apr

May

June

2009

July

Aug

Sept

Oct

Nov

Dec

2010

Jan 2011

Viscose Staple Fiber (1.4 Den)

2.70

2.52 2.50

2.41 2.30

2.33

2.30

2.30

2.55 2.46

2.38 2.29

2.25 2.02

2.10 1.84 1.68

1.72

1.76

1.95

1.70 1.50 Oct

Nov

Dec

Jan

Feb

Mar

Apr

May

June

2009

July

Aug

Sept

Oct

2010

Nov

Dec

Jan 2011

were reduced from a month or so to 15-20 days and producers also started planning for run-cuts. Some producers even encountered negative inventory and they stopped signing big orders. In the export market, offers were seen at US$ 3,200-3,400/ton. It is expected that VSF prices will rise a marginally next month. Prices of VSF from two leading suppliers from India and Austria were stable after the hike in the last quarter of 2010. Viscose filament yarn (VFY) market continued to see low sales/production ratios. Given the lack of strong supporting factors, trades were hard to conclude despite all the efforts VFY producers made to maintain offers at previous levels. Current offers were somewhat unrealistically high, so downstream end-users and distributors had little intention in purchasing and were mainly digesting inventories. It is expected that in New Year VSF prices will go in the uptrend. .....Contd. on Pg. 15)

2.32

2.350

2.37

2.27

2.300

2.30

2.250

2.167

2.200

2.143

2.35

2.34

2.34

2.24

2.150 2.100

40s P/V

180

190

5.6K

2.050

45s P/V

185

195

5.4K

1.950

182

5.8K

205

5.1K

245

4.7K

265

3.9K

320

3.2K

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Oct

Viscose Filament Yarn (VFY)

2.62 2.56

2.450

5.4K

160

2.15

2.135

2.000 1.900

US$ per kg Oct

Nov

Dec

Jan

Feb

Mar

Apr

May

June

2009

July

Aug

Sept

Oct

Nov

2010

Dec

Jan 2011

Market Intelligence Reports are published fortnightly covering the market dynamics of the major products’ value-chain in the international and the domestic markets. Textile Excellence covers Acrylic Cotton Spun yarn Polyester Nylon Viscose and Combined report of all products, which could be subsribed to, individually or collectively. These reports will also be available on the internet at www.TextileIntelligence.com. Fax your subscription requests to us on 022-22017013 or contact us on 022-22017061-62 or email at Gohain@TextileIntelligence.com



1 US$ = 45.46 Rs. = 71.20 BDT

Jan

2.700

20s P/V

30s Carded 172 cotton 40s Carded 195 cotton 60s Carded 234 cotton 40s Cotton 255 combed 60s Cotton 310 combed * Including Excise Duty

Dec

Viscose Staple Fiber (VSF) Viscose Staple Fiber (VSF) prices in most of the Asian markets were stable except China where prices declined marginally. Average inventory of VSF producers in China

30s P/C

195

Nov

2010

2.550

185

Oct

Polyester Filament Yarn (PFY) In December 2010, polyester filament yarn (PFY) market was more or less stable with a tendency to go upward. In the first half January, PFY market was generally stable and most producers quoted flat offers, but as the PTA and MEG prices move north ward, PFY prices started to strengthen. However, demand from downstream buyers is limited and the sales/production ratios of the producers were extremely low. Producers with lower offers saw better liquidity. Later, some PFY producers raised the offers further and some others stayed sidelined.

2.500

40s P/C

2.86

Trade volume of nylon filament yarns (NFY) decreased, as textile mills became uninterested in purchasing and supply of fine-denier products increased. It is expected that nylon filament yarn prices will be stable to firm in the next month.

2.600

190

2.95

January, trade volume started to expand and prices tended to stabilize in the fist half. As the demand grew and raw material prices picked (PTA and MEG) up PSF producers raised offers. It is expected that PSF prices to show upward trend in the short term and in February.

Spun Yarn*

180

2.90 2.90

1.32

0.90 Oct

2.83

2.90

2.87

2.85

1.17

1.16

1.14

1.135

Acrylic Staple Fiber (ASF) In December 2010, the international acrylic staple fiber (ASF) market was quiet. Given low run rates of major ASF units and turnaround plans in the future, most producers mainly produced for previous orders with no offers quoted, while Asian traders were also cautious about negotiations towards high-priced ASF cargoes in the future and they mainly sidelined with the concerns of a weak ASF market approaching the year end. Currently, offers for regular 3D tow were at around US$3,0003,100/ton. As for differentiated acrylic fiber products, flat specs in Tae Kwang were offered at US$ 3,300/ton, while

1 candy=355.62 kgs

40700

1.16

2.825

1.90

Cotton price/candy*

J-34-ICS-202#

1.10

1.07 1.08

2.2K

80/108 intermingled*

150/108 intermingled*

1.10

1.17

2.89 2.84

2.8

1.23

US$ per kg

100

US$ per kg

80 intermingled*

1.17

1.235

2.92

2.9

1.78

1.30

2.97

2.95

US$ per kg

92

FDY 70/72

3.04

3.05

2.10

FDY 70/34

3.06

Nyon Filament Yarn (70 Den)

2.30

POY 130/34

Textile Intelligence

January 2011

Exchange Rates:

US$ 71.20

Sterling £: 113.60

Euro €: 96.27

Jap ¥: 0.86

Ind `: 1.56

Aus $: 70.38

Can $ : 71.62

H.K $: 9.13

Rus.Ruble: 2.38

Sing $: 55.41


Market Intelligence Report 15

February 2011 X Textile Excellence Bangladesh Edition

Highlights

Chinese and Indian local market prices of Major Products Chinese Price Products

Indian Price

Bangladesh Price

RMB/ MT

Equivalent US $/MT

Rs/MT

Equivalent US $/MT

BDT/MT

Equivalent US $/MT

Polyester DTY 150 D

14700

2234

97000

2134

200000

2809

Polyester FDY 70 D

16400

2492

94000

2068

190000

2669

PSF 1.4 D

13120

1994

95000

2089

151200

2124

VSF 1.4 D

25213

3832

140000

3080

235000

3301

Cotton fiber (28/29 mm)

27800

4225

117977

2595

267016

3750

24's Combed knitting cotton yarn

34000

5167

222000

4883

425000

5969

30's Combed knitting cotton yarn

35000

5319

235000

5169

432000

6067

Highlights of Latest Report

1-15, January 2011

(.... Contd from Pg. 14) Cotton In India, cotton prices start receding at the start of the month of December 2010 before the Indian government's announcement that it would still allow exports of 2.5 million bales despite expiry of export deadline on December 15, 2010. As this news landed in the market, cotton prices in India were jumped as exporters bought cotton aggressively. The prices of the most common Shankar-6 variety rose by Rupees 1000 to 43,000 rupees (US$ 952.8) per candy (of 355.6 kg each). In spite of the price hike, Indian cotton is much cheaper than Chinese or US cotton. Exporters are expecting buyers in China will pay higher prices to secure supplies. Overseas demand for Indian cotton has increased after bad weather hit crops in China and Pakistan, both leading consumers. Domestic cotton arrivals - bales which are sold domestically at Indian spot markets - have risen 1.9% so far in the 2010/11 season over a year ago on higher output and accelerated harvesting after the weather turned dry, the state-run Cotton Corp of India said on December 20. India is likely to produce more than 32.9 million bales of cotton in 2010/11, topping last year's 29.5 million bales, as per latest estimates by Cotton Advisory Board 180 167.60

Cotton A Index

170

174.10

158.06

160 150 140

US Cents per pound

129.65 130 120 110 93.43

100 81.38

80

90.84

89.84

77.09

71.91

70 60

106.30

93.43

88.50

90

85.61 76.48

66.66

50 Oct

Nov 2009

Dec

Jan

Feb

Mar

Apr

May

June

July

2010

Aug

Sept

Oct

Nov

Dec

Jan

Textile Intelligence

after the destruction caused by floods in the country. On the other hand, the mills were not ready to do any deal above psychological levels. The cotton production has declined by 16.95% as arrivals recorded at the ginneries on December 15 from 11,291, 149 bales same period of corresponding year, while it was registered at 9,377, 263 bales. The shortfall cannot be levelled unless imports have covered to feed the mills and let the exports of textile products going. Out of nearly 1400 ginneries, 945 units in Sindh and Punjab have started operation. In China, China Cotton Index was down to 27,440 yuan/ton. Average price for 527-grade cotton was up at 25,522 yuan/ton (approx. US$ 3875) delivered. Analysts said that the spot prices of cotton do not have strong momentum to rise in China. In addition, the cotton enterprises are bothered by the rising purchase prices and inferior quality of cotton seeds. In the short run, there are large uncertainties in the spot cotton markets. From the perspective of supply and demand, the latest statistics released by the U.S. Department of Agriculture show that China's cotton demand for 2010 was only 6.5 million tons, significantly less than the expected 11 million tons. According to the China's General Administration of Customs, in December 2010, China imported totally 462,000 tons of cotton, 336,000 tons more than the amount in November an increase of 266%. The average import prices in December continued to rise, reaching US$2,656/ton. It was US$300 higher than the price in November, equaled to 12.7% increase. India, surpassing the United States and Uzbekistan, once again dominated the top position of China's import source country of the month. Besides, in 2010 China's total cotton imports reached 2.839 million tons, an increase of 86% than it was in 2009. Reviewing the year, the import amount climbed to 885,000 tons in the first quarter, an increase of 60.9%.

2011

(CAB). US cotton futures finished lower on light follow-through investor sales and news of an interest rate rise in top consumer China. The market may see further choppy trade in the last trading week of 2010 as most large investors have already closed their books and will not return until after the New Year. The key March cotton contract dropped to US$ 1.4576 per lb. The market was also pressured by a fresh interest rate increase in China. The December 25 rate increase by the People's Bank of China was the second in just over two months, and while the timing just before year-end may have been a surprise, the move itself was not, but then the market pared its losses as players digested the move and strong soybean futures alleviated the bearish impact of Beijing's decision. Analysts said many market players would also be away next week to attend the annual Beltwide Cotton conference in Atlanta. They said market focus would also increasingly turn to prospective US cotton plantings in 2011, coming as it does after the market's performance in 2010 when cotton values hit all-time highs. In Pakistan, uncertainty prevailed on the cotton front, as fluctuation both ways were marked despite perception surge will continue. The Karachi Cotton Association (KCA) spot rate was at Rs 9000 Seed cotton prices in Sindh and Punjab were at Rs 3,900-4,200. The cotton market turned firmer owing to cotton exporters entering the market to finalise new deals. But the ginners were not ready to finalise any deal below the asking prices due to short crop

Cotton Yarn Asian cotton yarn prices were inched up in January after showing a stable trend in month of December 2010. In India as well, cotton yarn price were stable in the first half if December 2010 but in the second half of December prices started moving north and in mid January as the cotton prices increased, local market prices increased by Rs 10-15 depending on count. Indian Government decision to extend the period for shipping cotton and cotton yarn exports till March 31, 2011 spurt the hike in both cotton and yarn prices. In fact, Yarn spinners are anticipating prices to increase even further in the first quarter of the New Year. In Pakistan, in the first half of the December 2010, cotton yarn prices slightly declined as buyers were kept themselves at sidelines of the market. In the second half of the last month, sentiment in the cotton yarn market was weak; as buyers are expecting decline of cotton yarn prices. However, in January yarn prices strengthened and it is expected that cotton yarn prices will rebound in the current quarter as cotton prices in Pakistan reaching to the higher level and stock at ginning mills rapidly drying up. In China, in the first half of the December 2010, cotton yarn prices stopped falling, as cotton prices were rebounded. In the second half of December also, cotton yarn prices were stable since demand from weavers and knitters have fell to extremely low levels, ahead of Chinese New Year holidays. However, prices are expected to move up in February as the Chinese manufacturers are back in operation. Current Indices: z 'A' index: 174.10

z 'B' index: NQ

Turkey hiked duties on textile and garment imports In a move intended to protect its domestic manufacturers from rising imports, the Turkish government is to impose anti-dumping duties on shipments of woven fabrics and ready-made garments from countries with which it does not have a free trade agreement. An official statement from the Undersecretariat of Foreign Trade said it had decided to take temporary safeguard precautions while it carries out an investigation into complaints that local producers have suffered as a direct result of surging imports. As a result, customs duties will be lifted to 27% for least developed countries (LDCs) like Bangladesh and Cambodia, up to a maximum of 40%. The additional customs tax will range from US$3.5 to US$16/kg for LDCs to US$5.5 to 20/kg for other countries. Also, although the customs union between the European Union (EU) and Turkey enables industrial goods to traded between Turkey and the EU duty free, third country imports cleared in the EU and transferred to Turkey could also be hit by the new tariffs. Products affected by the ruling include overcoats, suits and jackets, shirts, blouses, underpants, nightshirts, pyjamas, T-shirts, pullovers, cardigans, swimwear, as well as fabrics made from wool, cotton and manmade fibres. According to official figures, in 2009 Turkey imported textiles and raw materials worth of US$6.3billion, and apparels worth of US$2.0bil„ lion.

Cotton Yarn price Product

Oct 10

Nov 10

Dec ‘10

Jan ’11

20/1 KW

3.90

5.30

5.00

5.22

30/1 KH

4.15

5.60

5.30

5.55

20/1 CH

4.00

5.75

5.45

5.70

30/1 CH

4.50

5.90

5.60

5.80

40/1 CH

4.90

6.35

6.05

6.25

40/1 CW

5.05

6.50

6.20

6.45

KW: Carded Weaving; KH: Carded Knitting: CW: Combed Weaving; CH: Combed Knitting; “All the prices are in US$/kg FOB Indian Ports for site L/C "Above mentioned prices are indicative & we do not take responsibility of any business transaction at these rates. For Subscription contact: Textile Intelligence 4 & 5 Jain Bhavan, 3rd Floor, 80, Dr. M. B. Welkar Street, Kalbadevi, Mumbai - 400 002. Tel: +91 22 22017013/61/62 Fax: 91 22 22017063 Gohain@TextileIntelligence.com

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16 Market Focus

Textile Excellence Bangladesh Edition X February 2011

SPANISH TEXTILE

AND CLOTHING INDUSTRY Mr. Pradeep Ahire Industry Analyst, Textile Excellence pradeep@TextileExcellence.com

T

he Football World Cup Champion's textile and clothing industry, like other member countries of the European Union, is undergoing strategic changes since the business dynamics of the trade has changed after the full liberalization of textile and clothing trade was allowed effective from January 1, 2005. Following the demise of quota system, Spain started losing it’s market share in world trade in textile products and clothing, especially after the emergence of China. This situation has caused a very significant increase in imports and a loss of employment in the sector within the country. Spain’s textile industry is located mainly in Catalonia and Valencia, the latter specializing in textiles for household while the clothing is distributed almost the entire geography, emphasizing Galicia, Castilla - La Mancha and Andalusia. Foreign Trade The foreign trade sector during the 2009 reflects the effects of major crisis that has passed through the Spanish and world economy. So, imports have decreased for the second consecutive year, down 11%, with a more

negative impact on textile products (-26%) due to the collapse of the textile industry, while foreign purchases of clothing (-7%) have been affected by the slump in domestic consumption. In 2009, overall textile and clothing exports have performed somewhat moderately and reduction of value was limited to only 2.3%. However, apparel sector registered a small growth (+4%), while the textile and fiber manufacturing suffered a sharp decline (-15%). Export forecasts are still uncertain since it is clear that the economic recovery in Europe, the main market for Spain, will be slow. However, consolidation of the recovery during the year might change the scenario and exports could look up. Current Situation The evolution in the early months of the year 2010 shows some improvement in the economic situation of the textile and clothing sector of Spain, indicating that it has surpassed the height of the crisis. This improvement was generated primarily by growth in export demand as the domestic market has continued in negative territory, reflecting the trend in the Spanish economy. The slowdown in overall household consumption, the construction crisis and negative expectations about the

Table 1. Spanish Textile and clothing sector % Change year in that period Data

Period

evolution of the economy, affect the demand for textiles and clothing with particular intensity. Export figures in the first quarter show a clear increase (2.5%). Exports of manufactured textiles (yarn and fabrics) have increased strongly (+10%), while clothing have negligible growth. The recovery of exports of textile manufactures reflects the increased demand from global textile industry, especially in emerging countries, and also the favorable contribution of Euro. The increase in exports are directed to the European markets: France, Germany and Italy, Asian and North African countries. On the other hand, imports are still in negative rates (-0.2% in the 1st. quarter). Imports of textile manufacturers have grown while the end-use (clothing and household linen = -2%) reflect the con-

Table 2. Spain: Exports of Textile & Clothing Articles Exports

Textile

+10.9 Jan-Apr 2010/ -15.0 Jan-Apr 2009

Clothing

+0.6 April 2010/ -0.4 April 2009

Clothing

Imports Exports

-0.2 Jan-Apr 2010/ +2.5 Jan-Apr 2009

Trade Balance

+5.3 Apr 2010/Apr 2009

Employment Affiliated Companies

-8.7 May 2010/May 2009

Investment Machinery Imports

-15.5 Jan-Mar 2010/Jan-Mar 2009

Trade Sales Dress + Shoes

+0.2 Jan-Apr 2010/Jan-Apr 2009 Sources: INE, MTIN and Department of Customs.

% Change

53.6

68.2

-22

Chemical Fibers

57.9

113.2

-49

Yarn

387.1

440.5

-12

Fabrics

969.9

1140.2

-15

Knitting

174.5

191.6

-9

Other Articles: - Carpets & coatings - Articles technical use

74.6 589.5

77.6 673.5

-4 -12

Knitwear

2225.6

2142.9

+4

RMG

2936.3

2795.8

+5

352.3

361,6

-2

7821.3

8005.1

-2.3

Textile Articles:

Clothing Articles:

Total

Table 3. Spain: Imports of Textile and Clothing Articles Imports

Million € 2009

2008

% Change

Fibers: Natural Fibers

Foreign Trade

2008

Natural Fibers

Industrial Prices Textile

Million € 2009

Fibers:

Textile/Home & other

Productión

tinuing weakness in domestic consumption. Chinese and Asian products showed their dominant presence, which represent 46% of total imports. The evolution of demand has had an impact on the production sector, which has abandoned the extremely negative growth rates in 2009 (20.3% annual average), while production has been at -2% in April 2010. The current trend of improvement has not yet had a significant impact on the financial conditions of the companies, as finished goods prices continue to be very constant and on the other hand, there is a resurgence of inflationary pressures in

77.8

95.4

-18

141.9

191.1

-25

Yarn

362.2

513.1

-29

Fabrics

709.8

968.8

-27

Knitting

118.7

146.9

-19

Other Articles: - Carpets & coatings - Articles technical use

137.3

146.8

-6

549.6

776.9

-29

Chemical Fibers Textile Articles:

Clothing Articles: Knitwear

4078.4

4493.5

-9

RMG

4866.9

5185.4

-6

752.7

763.6

-2

11795.2

13281.5

-11.2

Textile/Home & other Total

the markets for fiber and energy. Current prospects point to a trend of gradual recovery of activity in the sector, based on the positive support of exports, while internal market continue to retract, so this improvement will be conditioned primarily by the evolution of European markets, which consumes 75% of Spain's exports. Imports The salient features of imports of textile and clothing sector in the whole year is as below: X China remains the leading supplier, but reduces its sales X A strong decline in supplies from European countries (-20%) Imports from Asia maintained a large presence in the market, but have declined slightly (-2.9%) in 2009 compared to 2008. China remains the leading supplier with a market share of 25% of the total, but sales fell slightly (-2.2%), especially in the field of textiles. From the Asian region, imports from India, Bangladesh and Vietnam were increased in 2009 compared to 2008. The Asian region imports represent nearly 46% of total imports. In 2009, imports of textile & clothing from EU reduced from 34% to 20% and Mediterranean countries registered a decline from 18% to 10%. Highlights for the Household & Furnishing Textiles Market in Spain X Spain is a large market for household and furnishing textiles in the EU, ranking fifth & fourth

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Market Focus 17

February 2011 X Textile Excellence Bangladesh Edition

X

X

X

X

X

respectively. Spanish demand for household textiles declined by 1.4%, while for furnishing textiles increased by 2.1%. The economic crisis and Spain's plummeting housing market are expected to have a negative influence on demand for household and furnishing textiles in the years to come. Spanish production of household textiles decreased by 7.0% to € 206 million in 2008 while production of furnishing textiles showed a different pattern, with production increasing by 1.3% to € 293 million in 2008. Imports of household textiles increased rapidly to € 348 million in 2008. Imports of furnishing textiles also increased, although more slowly to € 140 million. Spain is a medium-sized importer of household and furnishing textiles in the EU. Imports from developing countries (DCs) sharply increased and constituted a major share of Spain's imports. The total share of DCs in import value of both household and furnishing textiles increased (household textiles 48% to 57%; furnishing textiles 47% to 64%). Pakistan was the leading DC supplier of household textiles, accounting for 19% of all imports coming from DCs. Morocco is one of the leading suppliers of furnishing textiles, occupying a share of 22% of all imports from DCs.

Demand In general, there are clear differences within the Spanish household and furnishing textiles market in regional terms. The older, traditional consumer in rural areas in the West of Spain has a rather low expenditure on household and furnishing textiles. This is in contrast to the modern, fashionable consumer living in big cities like Madrid, Barcelona, Valencia or regions like Catalonia and the Basque Country. The Mediterranean climate of Spain is the reason that homes have minimal furnishings. Increased demand is influenced by the shrinkage of household size in Spain, as is the case across Europe, as well as an increased interest in more fashionable products. The market for basic household and furnishing textiles is mature. Growth has been driven by an expansion in the range of products available, such as new sizes and new fiber blends, designed to achieve more comfort, luxury or special effects. Per capita expenditure on household and furnishing textiles amounted to € 16.37 per capita in Spain in 2008, which is lower

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than the EU average of € 17.85. Household Textiles Total demand for household textiles in Spain amounted to € 387 million in 2008. Spain was a large market for household textiles, ranking fifth in the EU, behind Italy and UK, but ahead of Netherlands and Belgium. In the period 20042008, demand decreased by 1.4% per year, which is similar to the EU decrease of 1.8%. The demand for the various product groups, with the annual variations, was as follows: X Blankets and travelling rugs: annual decrease in demand of 8.0% to € 37 million in 2008. Share of 8.3% of total EU demand for this product group. X Bed linen: remained virtually stable at € 183 million in 2008 with a share of 7.1%. X Table linen: -5.0% to € 31 million in 2008 with a share of 6.4%. X Bathroom & kitchen linen: remained virtually stable at € 136 million in 2008 with a share of 9.8%. Furnishing Textiles Total demand for furnishing articles in Spain amounted to € 363 million in 2008. Spain is a large market for furnishing articles, ranking fourth in the EU, behind Italy and Germany, but ahead of France and Slovenia. In the period 2004-2008, demand increased by 2.1% per year, which is smaller than the EU increase of 4.0%. However, in 2008 all product groups recorded a year on year decline as a result of the worsening economic climate. The demand for various products, with the annual variations, was as follows: X Curtains: annual increase in demand of 2.4% to € 200 million in 2008. Share of 8.4% of total EU demand for this products. X Bed spreads: +2.2% to € 20 million in 2008 with a share of 9.7%. X Other furnishing articles: +1.8% to € 143 million in 2008 with a share of10%. Kids wear Market The most recent figures from the Spanish Association of Manufacturers of Children's Products (ASEPRI - Asociación Española de Fabricantes de Productos para la Infancia), show that the Spanish children's wear industry turned over €989.72 million in 2009, of which domestic sales accounted for 74% and foreign sales 26% (€259 million). (ASEPRI has 201 partner companies which, between them, account for more than 350 Children's wear brands). The sector has prospered both in quantitative and qualitative terms, with the help of modern pro-

duction and distribution processes. Leading companies have sought to strengthen their brand image by opening their own shops or franchises, first at home and then abroad. This commitment to foreign markets has led to constant export growth. In 2009, exports reached €259 million, up by 8.4% on 2008. An analysis of Spanish exports to different geographical areas, shows these focus mainly on the European Union, worth €206.4 million in 2009, and accounting for 79% of the total figure, a considerable distance from North America (8.9%) and Far and Middle East (4%). This concentration of sales in the European Union is 5 percentage points above the percentage recorded in 2006, which suggests that, at times of recession, companies take fewer risks and prefer to focus on neighbouring markets. Italy is the Spain’s largest export market, worth €60.5 million in 2009, and accounting for 23% of the total, followed by Portugal with € 42 million with a share of 16%. The two markets account for 39% of Spanish kids wear exports. Intimates/Swimwear Market A few decades ago, intimate apparels were items of necessity and the purchase motivations were primarilypracticality and price. Today, however, the sector adheres to the same basic principles as ready-to-wear products. Brands create fashions and present their collections at leading trade fairs and Spain is one of Europe's top producers. The Spanish industry covers the lingerie, underwear, hosiery and swimwear produced by some 200 companies. Catalonia and Valencia are home to many of the production centres, although Galicia and CastileLeon are also significant. Swimwear is perhaps the segment that has developed most dramatically in recent years, with a large number of

Table 4. Spain: Imports of Textile and Clothing items Country wise Order Rank 2008-09

Country

Imports in Millions €

% Share in Total

1

China

2993

25.4

-2.2

2

Italy

1221

10.3

-21.2

3

Turkey

1005

8.5

-10.0

4

Morocco

881

7.4

-11.0

5

Portugal

878

7.4

-8.5

7

India

657

5.6

+5.6

6

France

617

5.2

-24.7

8

Bangladesh

563

4.8

+8.7

9

Germany

387

3.3

-17.7

10

Netherlands

249

2.1

-8.1

11

Pakistan

242

2.0

-8.0

14

Vietnam

240

2.0

+10.1

13

Belgium

201

1.7

-16.2

12

R. Kingdom

166

1.4

-35.7

15

Thailand

-12.3

Other Countries Total Import

157

1.3

1338

11.3

-23.6

11795

100

-11.2

Source: Department of Customs, Spain

companies springing up recently in Spain, particularly the Canary Islands. There has also been considerable product diversification and companies with a solid tradition in lingerie and underwear have achieved major economies of scale by expanding into swimwear, strengthening and completing their spring/summer collections in the process. Over the last three years, there is a considerable fall in export growth with a yearon-year drop of -27%. By segment, lingerie is a substantial part of the total, accounting for 64% of sales. The companies in the sector have seen a drop in sales in all segments on the international market, with swimwear suffering the steepest losses. Outerwear Market Spanish outerwear market can be divided into several segments based on type of product combined with type of activity, resulting in a specific clothing behaviour, like formal or classic, (smart) casual, leisure and active sports. Purchases in volume of women's formal clothing

decreased in the period 2006-2008, caused by fewer purchases of suits, ensembles and indoor jackets, while purchases of women's casual and leisurewear (outdoor jackets, cotton trousers, including jeans, shorts) increased in the review period. Purchases in volume of men's formal woven outerwear stabilized; casual and leisurewear dominated in men's expenditure. Sales of woven outerwear for boys' wear grew to a lesser degree than girls' wear and, especially, babies' wear. Leisure and casual items such as jeans and other cotton trousers, shorts and outdoor jackets remained rather popular. Expenditure on active sportswear in the children's sector had a market share of 14% in 2008. Among boys, the popularity of sportswear brands stabilized. Bodywear market Spain is the fifth largest bodywear market in the EU, after Germany, UK, Italy and France, with a value of € 3.6 billion in 2008, which was 9.3% of total EU consumption. Consumption of body-

Table 5. Demand for Household Textiles in Spain, 2004-2008, 2004 Total household textiles Blankets and travelling rugs Bed linen Table linen Bathroom and kitchen linen

% Variation from 2008

2005

2006

2007

in € million

2008

CAGR (in %)

409

443

456

437

387

-1.4

51

53

51

47

37

-8

185

198

210

205

183

stable

39

43

37

38

31

-5

135

148

157

148

136

stable

Source: Eurostat (2009)

Table 6. Demand for Furnishing Textiles in Spain, 2004-2008, 2004

2005

2006

2007

in € million

2008

CAGR (in %)

Total furnishing textiles

334

386

382

403

363

2.1

Curtains

182

198

213

226

200

2.4

18

25

31

26

20

2.2

133

163

138

151

143

1.8

Bedspreads Other furnishing articles

Source: Eurostat (2009)


18 Market Focus wear increased 1.6% annually in the period 2004-2008. Consumer spending on bodywear per capita accounted for € 79, which is just above the EU average of € 78. In volume terms, the Spanish underwear and nightwear market grew in size from 278 million units in 2006 to almost 300 million in 2008. Consumption of women's pantyhose and tights accounted for 174

Textile Excellence Bangladesh Edition X February 2011

million pairs in 2008, which means 8.8 pairs per women. The share of light-weight pantyhose and tights decreased in favour of knee and full highs. Considering the split in the Spanish hosiery market between brands and own labels, the brands are stronger than in other major EU countries, except Italy. However, the dominance of brands is being diluted by

own or private labels of (expanding) speciality retail chains, like Zara, Oysho, Women's Secret and Mango and of unspecialized hyper & supermarket chains. China remained the leading supplier of bodywear to Spain, followed by France, Italy, Portugal and Turkey. These five countries accounted for 60% of Spanish imports in 2008. Growing suppliers

(exports valued more than € 5 million) of bodywear during the period 2006-2008 were: China (+27%), Bangladesh (+19%) & Egypt (+193%). Export Market for Bangladesh Spain has been a very potential market for Bangladesh for export of garments, home textiles and finished leather and footwear. The latest report of

the Export Promotion Bureau showed that Bangladesh's exports to Spain amounted to US$514 million in the 11 months of 2009-2010 fiscal year. Main items of exports to Spain are: T-shirts, singlet, Ladies suits, Ensembles, Jackets, Dresses, Blouse, Shawl, Scarves, Mufflers, Underpants, babies garments and clothing acces„ sories, etc.

Table 7. Consumption of Bodywear in Spain 2004 2006 2008 million million million € mln € mln € mln units units units Underwear for: -- for women or girls 115 597 120 637 125 661 -- men or boys 83 326 86 344 88 365 Foundation wear 48 859 50 883 50 914 Night and home wear 32 507 32 517 34 525 Total underwear and nightwear 278 2,289 288 2,381 297 2,465 Swimwear for women and girls 14 275 14 279 15 285 Swimwear for men and boys 9 157 10 161 10 166 Total swimwear 23 432 24 440 25 451 Pantyhose and tights 168 408 169 421 174 424 Socks and stockings 102 217 104 221 104 216 Table 8. Spain: Imports of Top 20 Items of Clothing

(Value: 1000 Euros) 2007

HS Code

Items

61091000

T-shirts & other vests of cotton, knitted or crocheted

61102099

Rank

%Total

141.880,14

1

30.5

Women's or girls' jerseys, pullovers, waistcoats & similar articles, of cotton, knitted or crocheted

34.163,55

2

61102091

Men's or boys' jerseys, pullovers, waistcoats & similar articles, of cotton, knitted or crocheted

28.479,24

61103099

Women's or girls' jerseys, pullovers, waistcoats & similar articles, of manmade fibers, knitted or crocheted

61051000

Men's or boys' shirts of cotton, knitted or crocheted (excl. nightshirts, T-shirts & other vests)

62034235

62034231

Men's or boys' trousers & breeches of cotton (excl. denim, cut corduroy, knitted or crocheted, industrial & occupational, bib & brace overalls and underpants) Men's or boys' trousers & breeches of cotton denim (excl. knitted or crocheted, industrial & occupational, bib & brace overalls & underpants)

Value

2008 Value

2009

Rank

%Total

150,362.31

1

27

7.4

55,684.76

2

3

6.1

36,610.12

23.281,49

5

5

19.629,63

6

23.493,23

Value

Jan-Oct 2010

Rank

%Total

149,240.20

1

25.3

10

47,061.46

3

3

6.5

50,957.18

23,076.71

6

4.1

4.2

29,819.90

4

4

5.1

27,984.51

13.789,81

8

3

Value

Rank

%Total

150,566.85

1

26.5

8

35,281.00

2

6.2

2

8.6

35,040.39

3

6.2

32,246.91

4

5.5

34,384.90

4

6.1

5

32,166.41

5

5.4

32,433.87

5

5.7

5

3

30,528.31

6

5.2

26,698.28

6

4.7

15,999.61

7

2.9

21,497.75

7

3.6

21,587.28

7

3.8

62052000

Men's or boys' shirts of cotton (excl. knitted or crocheted, nightshirts and other vests)

9.287,24

11

2

13,875.23

8

2.5

17,191.59

8

2.9

15,442.84

8

2.7

61046200

Women's or girls' trousers, bib & brace overalls, breeches & shorts of cotton, knitted or crocheted (excl. panties and swimwear)

5.009,30

17

1.1

6,207.55

20

1.1

11,504.52

12

1.9

14,393.44

9

2.5

62046239

Women's or girls' trousers and breeches, of cotton (not of cut corduroy, of denim or knitted or crocheted and excl. industrial and occupational clothing, bib and brace overalls, briefs and tracksuit bottoms)

14.143,19

7

3

13,505.06

9

2.4

13,022.76

9

2.2

14,107.17

10

2.5

61112090

Babies' garments and clothing accessories, of cotton, knitted or crocheted (excl. gloves, mittens, mitts and hats)

5.559,46

15

1.2

7,709.87

14

1.4

12,073.24

10

2

13,657.27

11

2.4

62046231

Women's or girls' cotton denim trousers & breeches (excl. industrial & occupational, bib & brace overalls & panties)

5.100,25

16

1.1

8,021.73

13

1.4

10,779.28

13

1.8

12,479.04

12

2.2

61061000

Women's or girls' blouses, shirts & shirt-blouses of cotton, knitted or crocheted (excl. T-shirts and vests)

3.687,34

21

0.8

6,384.58

17

1.1

5,725.25

20

1

10,697.81

13

1.9

62063000

Women's or girls' blouses, shirts & shirt-blouses of cotton (excl. knitted or crocheted & vests)

6.870,65

13

1.5

6,253.29

19

1.1

7,704.63

15

1.3

8,299.58

14

1.5

61103091

Men's or boys' jerseys, pullovers, waistcoats and similar articles, of manmade fibers, knitted or crocheted

13.216,62

9

2.8

10,219.11

10

1.8

7,385.09

16

1.3

8,073.09

15

1.4

62034290

Men's or boys' shorts of cotton (excl. knitted or crocheted, swimwear and underpants)

4.532,74

18

1

7,489.12

15

1.3

6,198.57

18

1

6,200.70

16

1.1

62092000

Babies' garments and clothing accessories of cotton (excl. knitted or crocheted and hats)

2.553,10

24

0.5

4,241.76

24

0.8

5,631.57

21

1

5,956.66

17

1.1

61044200

Women's or girls' dresses of cotton, knitted or crocheted (excl. petticoats)

1.713,24

33

0.4

3,060.55

29

0.5

4,783.14

22

0.8

5,805.99

18

1

61102010

Lightweight fine knit roll, polo or turtleneck jumpers and pullovers of cotton, knitted or crocheted

2.023,88

28

0.4

3,664.29

26

0.7

7,325.84

17

1.2

5,314.97

19

0.9

61143000

Special garments for professional, sporting or other purposes, n.e.s., of manmade fibers, knitted or crocheted

851,22

50

0.2

414.56

81

0.1

938.07

50

0.2

4,725.15

20

0.8

Sub total

359.265,32

77.3

430,584.63

77.2

473,961.78

80.2

461,146.26

81.3

Source: Source: Department of Customs, Spain

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Processing 19

February 2011 X Textile Excellence Bangladesh Edition

WET PROCESSING OF GARMENTS Deepak Jadhav Industry Analyst deepak@textileexcellence.com

W

et processing of garments is gaining popularity now-adays. Apart from washing and cleaning, it can impart artistic and innovative look to the garments especially to denim fabric. It is being considered as value addition element to the garments. Various finishing's like antimicrobial, wrinkle-free, water resistant, moisture management, laser coating etc. can be achieved through wet processing of garments. The compass of fashion is directed towards denim; therefore innovative visual and wash effects are experimented on this fabric. Many variations in washes have been witnessed since the last decade in the segment of denim apparels. Definition of Garment Processing Out of four types of textile processing viz.- fiber processing, yarn processing, fabric processing and garment processing, the last option garment processing has gained momentum in past few years due to denim garments which is the largest garment segment being processed by this method. There are many advantages of wet processing of denims like it give softness to the garments, eliminates sizing problems, bleaching could be done at preferred parts of the garments, over dyeing could also be done, and so on. Garment Dyeing & Dyeing Machines The dyeing of the garments demands more care than fabrics due to the fact that the processing involves value added goods. The entire garment dyeing activities may be broken down into four categories, namely, fully fashioned garment dyeing, cut and sewn garment, dyeing of 100% cotton goods for boutique trades and processing of denims leading to stone wash, snow wash, over dyeing, stoneless washing and highlighting effects. A multi-color splatter effect called 'splatter dyeing' has been made possible on denim garments without the necessity of tieing or knot-

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ting, using reactive dyes combining, exhaust dyeing, pad-batch and printing technologies. Since majority of the garments are constructed from cotton fabrics, reactive and direct dyes are the most popular classes though other classes are also used to some extent. Exhaust dyeing with pigments is possible only with materials pretreated with a cationic agent which imparts substantivity to overcome the non-substantitive in nature of the pigments. Unlike fabric dyeing machines where rollers and jets are commonly employed in moving the fabrics through the machine and liquor, garment dyeing machines require special arrangements to move garments with reduced tumbling actions. Salient features of drum type machines, extractors, paddle type and jet circulators have been discussed in the past by many authors as shown in Table 1. The attributes of ideal garment dyeing machine would include automatic controller for cycle repetition and optimization, shade consistency, centrifugal extraction, heating facility to make the cycle faster, cooling facility, lint filter to give cleaner look to the garments, sampling device for better shade management, addition tank, tilting mechanism for faster unloading of the garments, variable speed for processing different garments and volume level control for shade reproducibility. Paddles are widely accepted for sweaters, loosely knitted goods due to their soft dyeing action, which avoids abrading and pilling the garments. For gentleness, the dyeing is carried out with an m:l ratio of 30:1 to 40:1, the blades of the paddle are either curved or rounded and the rotating speed of the paddle can be

regulated from 1.5 rpm to 40 rpm. Overhead paddle, lateral paddle and high temperature paddle machines serve the needs of the entire range of the garments. Dye extractors with multi-pocket designs have compartments to control garment movements, abrasion due to mechanical action by carrying the garments through the dye liquor in the compartments. By making more compartments' the tumbling effects and the entanglements in the garments are reduced and also are the abrasions associated with it. In drum type machines, a perforated drum is suspended lengthwise in a horizontal position, submerged in the dye liquor. The drums are divided into compartments and are capable rotating in both the directions at 2 rpm to 20 rpm, when temperature varies up to 140 째C. Drum dyeing centrifuging machines are also called multipurpose drum machines or multirapid dyeing-centrifuging machines, since these machines can perform scouring, dyeing, centrifuging and conditioning successively with automated controls. In jet machines, the dye liquor and goods are kept in circular motion by jet nozzles whose direction and force are adjustable. Turbulence nozzles at the bottom ensure liquor circulation, prevent goods from sinking and allow opening them. The machine capacity varies from 25 kg 125 kg of dry weight with m:1 ratio of 1:25 to 1:40 & temperatures as high as up to 130째C. Finishing of Garments Mechanical finishing of garments refers to the finishes, which are given to madeup textiles before they are ready for delivery. In most of the cases, the process consists of a steaming treat-

ment, to remove creases or to relax the garments. Driers are often constructed using tumblers, made from perforated drum, equipped with heating unit, an air suction unit, circulation unit and a lint sieve devices. The steam is blown outwards through the garment at low tension. Toppers are used for simultaneous steaming and stretching of trousers while pressing machines are used for pullovers, jackets, sweat shirts, shirts etc, with dummies. Ironing is carried out after toppers, pressing dummy operation, in areas like collar, cuffs, pocket and button flaps, etc. Earlier formaldehyde was originally used for improving the wet strength of the regenerated cellulosic fibers under acidic conditions and since then the applications have improved in various areas. Though the processes like wrinkle free, easy care, durable press finish employ similar chemicals, type of application and the forms of the fabrics vary, to decide the required end uses. Novel washing techniques are also used to achieve faded and emerized effects. Different dyeing effects in the garments are obtained by treating one side of fabrics with cross linking agents while leaving the other side freely without modification, provides an approach for a smooth-drying-dyeable fab-

Table 1 Garment dyeing machines and their principles Type of liquor

construction garment movement

Paddling machine

Mechanical arrangements like paddle, drum

Drum machine

Hydrodynamic movement with adjustable jets

Washing-centrifuging machines

Hydrodynamic circulating dyeing machines with so called floating liquor circulation principle

Jet dyeing centrifuging machines

Jets and nozzles are used to facilitate movement of the garments

rics. Differential dyeing effects in the cotton fabrics are obtained by spraying the cross linking formulation and dyeing the fabrics subsequently with reactive dyes. Pre-cure, post-cure, garment dip processes, wet and damp cure, reversible cross linking treatments are, often, employed to achieve wider finish effects. The relative merits and demerits of both pre-cure and post-cure processes are shown in Table 2. In the garment dip process, the garments are impregnated with a finish similar to the finish used in the conventional post-cure process, extracted, dried, pressed and cured. Softer hand in the garments can be achieved in this process compared to the conventional process. It has been found that reaction of formaldehyde with the secondary hydroxyl groups and the cross links formed in such reactions are not favourable ones, in terms of stability, though they are kinetically preferred positions, in terms of reactivity. Proven relationship exists among various process variables like pH, curing temperature and time for a given fabric or garment. Two reactions take place under acidic conditions with cellulose include acid hydrolysis of cellulose and formation of methylene ether bridges between the molecules of formaldehyde, two hydroxyl groups of adjacent cellulosic chains. The formalization process takes place in a combination of fast reaction in the amorphous region and a slow diffusion in the crystalline regions. Glyoxal itself can be used as a crosslinker but possibly breaks down during the curing operation and adversely affects the fabric strength and color. Attempts have been made to utilize various nonformaldehyde based chemi-


20 Processing

Textile Excellence Bangladesh Edition X February 2011

Table 2 Comparison of pre-cure and post-cure processes Parameters

Pre-cure

Post-cure

Curing

Flat state

Garment form

Benefits

Better smoothness

Smoothness

Dimensional stability

Dimensional stability Crease retention Minimum seam puckering

Drawbacks

No permanent crease

High cost

Seam puckering

Risk of premature setting

cals including butane tetracarboxylic acid (BTCA), citric acid, liquid ammonia and various silicone based derivatives in finishing of garments. Phosphoric acid and polyphosphonic acids may also be used to impart wrinkle-resistant properties when used in combination with cyanamide. Finish effects from polycarboxylic acids are achieved through ester linkages while ether linkages are formed in Nmethylolamide agents. BTCA treated cotton fabrics show similar properties as that of DMDHEU treated fabrics. The wrinkle recovery angle (WRA) of the BTCA treated fabrics are observed between 287°C-298°C while the values have been found to be 264°C-295°C for DMDHEU treated fabrics with the formaldehyde release up to 330 ppm - 450 ppm. The performance of citric acid treated fabrics is satisfactory in terms of durability and home laundering as compared to BTCA. In trifunctional citric acid hydroxyl groups hinder the esterification of acid with cellulose. Polymers of maleic acid esterify citric acid in-situ on cotton fabric under curing conditions which transforms citric acid into a compound with higher functionality and thus produce synergistic effect in the reaction. Incorporation of reactive polysiloxanes, with nonnitrogeneous, non-formaldehyde cross linkers results in superior lubricating action between fibers, yarns and draping action, without loss of toughness and abrasion resistance. Liquid ammonia treatment applied on cotton improves the wrinkle resistant performance, depending on the weight, construction of the fabric, and also the mode of handling. Grafting methods also have been attempted to graft glycidyl methaacrylate on cotton using ultra violet radiation, where the extent of cross linking increases with type of catalyst used. Reaction of the methylol group with cellulose takes place followed by the reaction of acrylol groups (Nmthyloloacry-lamide) from an aqueous solution by a base catalysed nucleophilic reaction or by a free radical initiated reaction with cellulose. Precautions in Garments Processing Processing of garments

has come through a long way to reach the present prominent status. Though garment dyeing appears to be attractive, it calls for many stringent requirements related to panels, seams, elasticated areas, waist band, cuffs and problems often occur due to shrinkage behaviour, chafe marks/creases, accessories, sewing threads, interlining and care labels. Poor fabric preparation and the garments manufactured using the panels that are taken from different lots of the fabrics result in problems that are difficult to rectify at later stages. Some of the surface effects of the fabrics visually influence the depth and hue of the dyed garments. Size, cross- section and crimp of the filaments also affect the depth of the shade, due to change in absorption and scattering power of light. The apparent color of yarns made from filaments tends to vary with the angle of viewing, whereas such sensitivity is not obvious in the case of staple fiber yarns. Fabrics containing raised surfaces exhibit variation in shade in the side and end arise mainly due to difference in the optical origin, which is traceable to the path length traversed by the light in the longitudinal and transverse directions in fibers. Chafe marks/creases are, mostly, related to drum dyeing machines and in many occasions, garments are turned inside out and dyed with non-foaming lubricants. Tendency to entangle can be reduced by tacking and bagging the articles which in turn reduces the abrasion, wear and tear of interior metallic surface. Fiber type (natural / thermoplastic) fabric construc-

tion (tightly woven crease prone), loading (higher loading-higher creases), addition of lubricant (special lubricants reduces friction) are some of the parameters that influence chafe marks. Swollen cellulosic fibers are especially sensitive to mechanical friction, while thermoplastic synthetic fibers tend to form permanent creases. For the garments prepared from the grey fabric, oxidative desizes c o u r - c h e m i c k- p e r o x i d e bleach sequence is used prior to processing. Residual hydrogen peroxide in the bleached materials can interfere with dyes and spoil the color values. Uneven finish applications, curing conditions in the fabric state, prior to garmenting, results in panel to panel shade variation in the garment dyeing process. In the case of reactive dyes, consistent shade replication depends on material to liquor ratio, alkali and salt concentration, heating rate, fixation time and temperature. The initial temperature of the textile substrate and process bath can influence the efficiency of the wetting process. Establishing the dyeing procedures for each garments style, dye system and set-controls can help to address the variations in load, water volume, temperature and cycle time. Garment to garment shade differences can be minimized with machine loads containing garments made from the same lot of fabric. Significant darkening of the fabrics occurs after subjecting it to calendaring because of the increased optical contact and reduced light scattering power. Variations in shade among the garment panels, between garments can also occur due to treatments with optical brightening agents, mixing of panels from fabrics. Processing problems related to the garment size control and appearance normally result from variations in yarn size /twist, ends/inch, picks/inch or courses/inch in the knitted fabrics. Tight seams in the gar-

ments become further tighter, due to the shrinkage in a high temperature dyeing process, and prevent dye penetration on seams and underneath the stitches. Dimensionally stable thread with low elongation will help to minimize seam puckering after dyeing. In the case of knitted fabrics, pre-relaxation is employed to avoid the problems of seam pucker and garment distortion and such fabrics can also be used along with woven fabrics as fabric cut and sewn garment designs. Too much bulky or tight stitch must be avoided in elasticated areas, waist bands and cuffs. The various patterns present in the garments must be adjusted to compensate for shrinkage during dyeing process. The physical condition of garments, process variables and their effects on garment finishing has been discussed in the past. Problems related to electrolysis of ionic processing solutions resulting from galvanic action of bimetallic garment accessories need special care. Anionic inhibitors are used to protect metal accessories, such as, button, zippers made of non-ferrous, white metals from oxidation and tarnishing. The cross linking treatment of cotton fabrics and garments results many changes in physical properties of the fibers, yarn and fabrics depend on the extent of reactions. Excessive cross linking results in loss of the strength and abrasion resistance and while in adequate cross linking leads to poor shrinkage control, surface appearance, smoothness and crease retention. It has been shown that relatively low concentration of formaldehyde (2% OWF) produces more improvements in the crease recovery on cotton than rayon65. Water spotting of the fabric, prior to curing, causes irreparable dye-resist spots on the garments. At higher temperature, increase in catalyst concentration decreases tear strength than at low temperature (165°C, 143°C)

without any improvement in WRA. Fabrics and garments cured at low temperature shows lower tensile and tear strength loss than at high temperatures. Optimizations of wrinkle resistant treatments have been explored using suitable softeners treatments to increase abrasion resistance & tear strength; softeners also act as sewing lubricant, protects threads from breaking and fusing, as the needle passes through. Without lubricant, an embrittled, resinated fabric would rapidly wear into holes at the elbows. The release of formaldehyde in DMDHEU treated fabrics decreases with the addition of scavengers, substantially and not altered by the presence of various dyes. The cross linked fabrics show poor water absorption rates due to cross linking, application of hydrophobic softeners and tend to give warmer contact feeling. The surface friction increases in untreated fabrics after washing compared to the treated fabric, perhaps due to increased hairiness. Higher degree of cross linking in the amorphous regions is necessary for an increase in wrinkle recovery. The cross linking prevents irreversible slippage of adjacent cellulose chains during fiber extension thereby reducing permanent set and increasing elastic recovery. Good correlation exists between elastic recovery of single fibers and the crease recovery characteristics of fabrics made from them at moderate extension levels. Vapour phase formaldehyde in presence of sulphur dioxide catalyst produces a high level of cross liking and produces fabric extremely resistant to wrinkling with crease recovery values of 300° C (W+F) for cotton and gives improvements in seams, collars, cuffs. Loss in tensile strength occurs as high as ~60% is observed in the cotton and fortisan fabric mostly as the result of the unavoidable acid hydrolytic degradation that accompanies the formaldehyde treatment. Conclusion Dyeing and finishing of garments, on outside, appear to be highly attractive but both the processes demand great deal of care in preparation and also during the processes, besides various accessories attached to them. Value added rejections arising out of these processes slow down the commercial acceptance of both the processes but the developments that take place in other branches of engineering could be used to control the process effectively and also to accommodate the necessary changes on account of the accessories involved in the garments. „

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21

February 2011 X Textile Excellence Bangladesh Edition

Trade & Policy

India signs CECA accord with Singapore

India Update

Textile imports to be cheaper The Finance Ministry, in conformity with a tariff elimination package under a bilateral free trade agreement with Singapore, has slashed Customs duty on 539 manufactured goods. This is likely to trim down the cost of imports of a number of manufactured items like textiles, textile articles and machinery. However, according to the industry experts, this would lead to a reduction in the protection that the domestic industry in these sectors has enjoyed, so far. The trade pact, formally called the Comprehensive Economic Cooperation

Agreement (CECA), becomes effective in August 2005. Post implementation, the CECA for the first time was reviewed in 2007, when India consented to expand the cover of its tariff reduction package to another 539 items covered under the

trade in the goods chapter. India then consented to abolish import duty on 307 of the 539 items, with the elimination taking place in five proportionate parts between January 15, 2008 and December 1, 2011. Machinery, textiles, textile articles, base metals and chemicals are the main items included in the list of 307 items. With the recent cut in the Customs duty on the 539 items taking place, almost 307 items have come very close to zero-duty access and are seen to earn a complete duty free access from „ December 1, 2011.

India in Brief

Govt. sets new deadline for cotton exports The government will allow from January 11 fresh cotton exports of 2.5 million bales, registration for which has begun from 31st December 2010. The Directorate General of Foreign Trade (DGFT) in the Commerce Ministry will accept applications for new registrations for seven days

till January 6. "The window of cotton exports has to be reopened; some 2.5 million bales have yet to be exported. We have invited electronic applications for allocations," Commerce Secretary Rahul Khullar told reporters. "Those applicants who furnish stipulated documents within the time limit will be

granted RCs. At least, 30 days (January 11 to February 25, 2011) time will be available for export against RCs," Khullar added. He said that document submission will start from January 11, 2011 and if an exporter gets RC on the same day effectively he can start export „ immediately.

Govt invites fresh bids for cotton exports Government will start accepting requests for fresh registrations for export of 2.5 million cotton bales within the overall limit of 5.5 million bales. The Directorate General of Foreign Trade will accept applications for new registrations for seven days till January 6. "It has been decided to invite applications for grant of registration certificate (RC) for export of cotton from December 31, 2010 to January 6, 2011," DGFT said in a circular to the customs authorities and members of the trade. Of the 5.5 million bales (of 170 kg each) per-

mitted for the current season, exports have already been transacted for 3 million bales. While the DGFT said the exact quantity to be allowed is being ascertained, sources said it would be around 2.5 million bales. A GoM had allowed 5.5 million bales for exports during the cotton season 2010-11 (OctoberSeptember), but exporters failed to ship the entire quantity after unseasonal rains delayed arrivals in the spot market. The entire shipment quota was to be completed by December 15. The gov-

ernment later decided to give exporters more time to ship the balance cotton. The DGFT made it cleared that Registration Certificates (RCs) would be allocated only after scrutiny of applications. It also said that exporters who did not export full quantity for which RC was obtained by them from the Textile Commissioner in October 2010, "would be disincentivised by reduction of their pro-rata quantity by the %age of such default". RCs would be issued for upto 1,00,000 bales of cotton on a „ single application.

Govt likely to increase cotton yarn export ceiling The ceiling on cotton yarn exports is expected to be reopened by the textile and commerce ministries. As per the ministry sources, the policy on the ceiling of cotton yarn exports is likely to be announced within two week’s time. The secretaries of both the ministries met the stakeholders from the textile industry in New Delhi, 1st week of January. The Central government had imposed a ceiling of 720 million kg on cotton yarn export, this year. The export licenses of cotton yarn producers had terminated on January 15.

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About 670 million kg of cotton yarn had been exported till the above mentioned deadline. Now, the ceiling is expected to be increased in order to permit the exporters to fulfill their commitments, as has been done in case of cotton by the Union government. According to an expert, spinning mills in India have a total capacity to export around 850 million kg of cotton yarn every year. Imposition of a ceiling on the export of cotton yarns weakens the standing of the exporters in the global market. Since the value of yarn

is twice that of the cotton, therefore Indians lose significant foreign exchange by shipping raw cotton. The country would reach an unfavorable position by exporting 720 million kg cotton yarn and 900 million kg raw cotton this year. The spinning mills in India have been always increasing their production capacity. Every year, three million spindles are being added. This also generates job opportunities. Therefore, more attention should be given on the export of yarn and fabric rather than on „ cotton.

Corporate Profile

Pratibha Syntex Pvt. Ltd

P

ratibha Syntex Pvt. Ltd is the vertically integrated textile manufacturing company, going from raw material to finished products, including cotton fiber production, spinning, knitting, dyeing and finishing, and apparel manufacturing. Capacity: 48048 Spindles for manufacturing approx. 13000 MT of Cotton Ring Spun Yarn per annum, 3000 Rotors for yielding approx. 9000 MT of Cotton Open End Yarn per annum, 10000 Spindles for manufacturing Ring Spun Melange Yarn. Counts: Ring Spun Yarn: Ne 10s to Ne 40s, Open End Yarn: Ne 6s to Ne 20s. Pratibha has a state-ofthe-art fabric manufacturing facility characterized by hitech machineries to produce variety of fabrics commensurate with global standards. Capacity: Knitting capacity of 9720 Tons per annum, Dyeing capacity of 6600 Tons per annum Pratibha manufactures high quality under-

wear, sportswear, leisurewear, high street fashion wear and loungewear for women, men, kids and infants. Capacity: Casual wear production is 2.5 million pcs per annum and Undergarments production is 8 million pcs per annum Company Name: Pratibha Syntex Pvt Ltd Business Type: Manufacturer Product/Service offers: Yarns, Fabric, Apparels, Garments, Ring Spun Yarn, Open End Yarn, Waste Cotton, Organic Yarn, Fair Trade Yarn, Comber noil Registered Address: 301, Acne Plaza, Opp. Sangam Cinema, Andheri Kurla Road, Mumbai, Maharashtra, India Zip: 400059 Brands: PRATIBHA Number of Employees: Above 1000 People Main Markets: North and South America, Eastern and Western Europe, Southeast and Eastern Asia, Africa, „ Oceania, Mid East

Industry Update

Latest Indian cotton output figures surpass earlier estimates Raw cotton production in India in the 2010-11 season is expected to climb to 32.9 million bales (1 bale = 170 kg) from the previously assessed figure of 32.5 million bales made in August by the Cotton Advisory Board (CAB). The latest assessment was arrived at a meeting held in Mumbai on 6th 2010 of the Cotton Advisory Board. This figure is also higher than the 29.5 million bales produced in 2009-10. The opening stock of raw cotton at the beginning of the sea-

son stood at 4.05 million bales, while closing stock of the season is estimated at 4.45 million bales. Overall mill consumption is anticipated at 23.05 million bales, SSI consumption at 2.45 million bales and non-mill use at 2 million bales. Exports as announced earlier will be 5.5 million bales. According to reports, despite cotton crop damage in the southern states due to the rains, the production has shown improvement in the northern and central cotton producing „ states.


22

Textile Excellence Bangladesh Edition X February 2011

Statistics China's Import & Export Statistics of Polyester Staple Fiber Countries

Total Import Volume in Jan-Oct

Egypt

Total Import Value in Jan-Oct

Total Export Value in Jan-Oct

0

0

6,111,092

7,716,611

17,934

48,643

3,552

4,823

Australia

0

0

3,341,411

3,900,960

Pakistan

248,186

129,228

92,172,785

111,013,675

0

0

14,204,577

17,164,542

2,862

7,155

124,987

176,298

838,265

2,727,408

2,096,491

3,026,501

0

0

20,887,156

26,719,963

South Korea

56,329,005

81,576,598

1,214,212

1,597,742

Netherlands

9,120

8,233

928,754

1,140,533

Ireland

Brazil Belgium Germany Russia

Canada Malaysia

0

0

6,178,261

7,323,527

14,547,269

19,226,227

10,615,901

14,137,180 129,865,397

USA

143,810

912,239

119,361,225

Bangladesh

0

0

4,707,657

5,826,516

Peru

0

0

10,425,739

13,780,528

Mexico

0

0

13,782,110

16,452,199

South Africa

0

0

1,989,204

2,456,593

Nepal

0

0

419,407

538,638

Japan

5,777,633

14,622,665

8,441,829

11,294,339

800

25,363

0

0

0

0

217,444

281,196

Taiwan

23,049,065

33,567,643

2,150,789

3,522,796

Thailand

11,020,338

20,322,142

2,908,879

3,793,731

920

6,885

15,073,581

17,816,342 4,099,787

Switzerland Sri Lanka

Turkey Hong Kong

0

0

3,189,835

31,089

95,845

85,980

113,661

Syria

0

0

11,238,815

13,639,946

Iran

0

0

16,781,107

20,794,516

Israel

0

0

12,043,399

14,794,312

Italy

11,949

63,677

3,809,400

3,515,342

India

202,666

650,608

14,693,664

16,653,088

Indonesia

987,245

1,518,362

11,619,279

13,908,146

Britain

392,589

685,411

370,152

508,159

0

0

23,791,942

29,448,197

Singapore

Vietnam

China Update

Unit: kg, US$ Total Export Volume in Jan-Oct

Comprehensive Textile Industry Review

Corporate Profile Zibo Tianli Wool Textile Co., Ltd

Z

ibo Tianli Wool Textile Co., Ltd was established in 2002 year, having invested 20 million yuan to build a large-scaled spinning production base. Applying professional Italian strand snap machine, they can produce yarn tops of 2,600 tons per year, spinning capacity is 12,000 spindles, and annual yarn output is 2,500 tons. Their main products include: acrylic yarn, blended yarn, polyester yarn, blanket yarn, sweater yarn, sock yarn, super soft yarn, etc. They have been exporting our products to Vietnam, Korea, Sri Lanka, Russia, South Africa, etc. Company Name: Zibo Tianli Wool Textile Co., Ltd. Product/Service offers: 100% acrylic yarn, acrylic knitting yarn, blanket yarn, sweater yarn, carpet yarn,

Industry Update

China in Brief Textile industry added value rose 11.8% in Nov According to the latest report from Ministry of Industry and Information Technology, the textile industry added value rose 11.8% from a year ago, or 0.3 percentage point higher than that of previous month. MIIT announced the consumer goods industry development situation of November on 24th Dec 2010 in its website. The consumer goods industry added value rose 14.3% in November 2010 on a yearly basis and remained the same from a month ago. The export value rose 24%. That's 1.9 points higher from previous month. From January to November 2010, the consumer goods industry added value rose 15.2% from same period last year. That's 4.7 points higher. The export value growth was 22.3%. That's 15.3% higher than same period of 2008. In November 2010, the textile industry added value rose 11.8%, or 0.3 point higher than that of previous month. The export value rose 17.9% or 1.8 points higher from a month ago. Of the main products, the output of yarn, fabrics and clothes rose 9.8%, 23.1% and 16.6% respectively. And chemical fiber output rose 12.2%. Exchange Rates (RMB):

Indian ` 0.146

In the first 11 months, textile industry added value increased 12.6% year over year; export value increased 16.8%. The output of yarn, fabrics and clothes rose 14.8%, 19.2% and 19% respectively; Chemical fiber rose 14.4%. China imported 462,000 tons of cotton in December 2010 According to statistics from China’s Custom, in December 2010, China imported totally 462,000 tons of cotton, 336,000 tons more than the amount in November 2010, an increase of 266%. Comparing the number in the same period

last year, it also got a 113% increase. The average import prices in December continued to rise, reaching US$ 2,656 / ton. It was us$ 300 higher than the price in November 2010, equaled to 12.7% increase. India, surpassing the United States and Uzbekistan, once again dominated the top position of China’s largesy supplier country of the month. Besides, in 2010 China's total cotton imports reached 2.839 million tons, an increase of 86% than it was in 2009. Reviewing the year, the import amount climbed to 885,000 tons in the first quarter, an increase of 60.9%. „

Trade & Policy

Cotton import quotas of 2011 have been issued to enterprises

A

ccording to China Cotton Association understanding, 2011 cotton import quotas had been issued to enterprises, including 894,000 tons tariff quotas and 1.7 million tons sliding-tax quotas, 700,000 tons more than last year same period. Next year, the government will release additional quota according to domestic and foreign cotton price trend and Xinjiang cotton transfer situation. The country usually issues the additional import quotas, which are subject to a sliding tax scale of between 5 and 40%, in several batches from year-end, but the volume in the first batch for 2011 was higher than those issued during the same period in previous years. The higher volume will help to ease pressure from local demand, which is „ boosted by an expanding shortage in 2010/11.

United States $ 6.63

British Pound £ 10.31

EU € 8.56

Japanese ¥ 0.079

Australian $ 6.60

China's textile, garment exports up 23.59% in ‘10

T

he export value of textile and garments in China hit a record high of US$206.53 billion in 2010, surging 23.59% y-o-y, according to the latest statistics from China's General Customs Administration. In 2010, the export value of textile products surged 28.44% from a year earlier to US$77.05 billion, while that of garments and accessories increased 20.88% year on year to US$129.48 billion. In the month of December, China exported US$19.92 billion of textile and garments, increasing 4.72% month on month. The export value of textile products was US$7.37 billion, 4.22% more than that in November, while that of garments and accessories surged 5.02% month on month to US$12.54 billion. Reportedly, the rapid growth in textile and garment exports was largely driven by gradual recovery in the international market, rising demands, the adjustment in industry structure and industrial upgrading. The value-added output of China's textile industry is expected to exceed RMB 4 trillion last year, while the profit will be more than RMB „ 200 billion.

Canadian $ 6.677

Hong Kong $ 0.853

super soft yarn, fur yarn, polyester yarn, polyesteracrylic blended yarn, acrylicpolypropylene blended yarn, polypropylene-polyester blended yarn, weaving yarn ,high bulk yarn, solid yarn, raw white yarn, dyed yarn Registered Address: Xiaozhuang Village, Shiqiao Office, Development Area, Zibo, Shandong, China (Mainland) Zip: 255086 Number of Employees: 101 500 People Main Markets: North and South America, Eastern Europe, Southeast and Eastern Asia, Africa, Mid East Main Customers: Vietnam, Korea, Sri Lanka, Russia, South Africa Legal Representative/ Business Owner: Ms. Zhaomei Wu Company Website URL: http://www.tianli2002.cn „ Price Movement of major poducts in Chinese Market Date

Date

Var.

Product Dec-

Jan-

10

11

12600

13300

5.6K

14350

14700

2.4K

16400

16400

0.0

1.2 Den

12400

12800

3.2K

1.4 Den

12700

13120

3.3K

25000

25213

0.9K

50300

50350

0.1K

24800

23800

4.0L

(RMB/MT)

%

PFY 150 Den POY 150 Den DTY 70 Den FDY PSF

Viscose VSF 1.4 Den VFY 150 Den Acrylic 1.5 Den

Spun Yarn Cotton 21s Carded

33000

33900

2.7K

32s Carded

34000

35000

2.9K

40s Carded

36000

36500

1.4K

32s Combed

35000

35500

1.4K

40s Combed

39500

40500

2.5K

60s Combed

51000

52000

2.0K

1 US$ = 6.58 RMB = 71.20 BDT

Russian Ruble 0.216

Singapore $ 5.11

Thai Baht 0.217

www.TextileIntelligence.com


Spinning 23

February 2011 X Textile Excellence Bangladesh Edition

CHALLENGES FOR BANGLADESHI SPINNING INDUSTRY Mr. Pradeep Ahire Industry Analyst, Textile Excellence pradeep@TextileExcellence.com

I

n the recent time Bangladeshi Spinners face several challenges in the market due to series of incidents impacting the industry, such as India's ban on cotton exports and the escalating price of cotton, the global economic downturn, depreciation of their currency against the U.S. dollar, the over production of yarn, etc. Though the crisis originated in developed countries, its adverse impacts started to be felt in economies of many developing nations such as Bangladesh. Indian yarn is the preferred raw material in the Bangladesh market due to its competitiveness in terms of quality as well as price over the Bangladeshi yarn, which resulting in large stocks of unsold yarn in the Bangladesh spinning companies. This is a scary situation for the local spinners, where many factories already reduced their production below 50% while 25-30 factories have shut down. The dependency on the Indian yarn is increased in the recent years due to its availability at low cost against the local yarn. Before 2008, Bangladeshi spinners were supporting domestic knit yarn producers fully, and supplying 76% of inputs to woven fabric producers. But now preferences are towards imported yarn and nearly every one consuming Indian yarn in their factory. The Bangladeshi spinning industry is already facing various difficulties, such as very limited availability of electricity, low gas supply, worker strikes etc. Additionally, spinning industry paying a high interest rate of 16% to banks, whereas, India and Pakistan, only pay 5% to 9% respectively. Insufficient Cotton Supply Base Bangladesh produces small quantity of cotton of mid-range and the volume remains between 50,000 60,000 bales. Domestic production of raw cotton can hardly meet 2% of its demand of the country. In Bangladesh, cotton is

steadily losing acreage to other competing crops like potato, maize, flowers, vegetables and rice as cotton cultivation is susceptible to excessive rainfalls/floods and pest infestations. Lack of short duration, high yielding and pest tolerant varieties and relatively low market price for cotton vis-Ă -vis other competing crops are major constraint affecting cotton cultivation. In order to meet up with the increasing demand of mainly cotton yarn in the domestic market, the number of spinning mills are increasing rapidly. According to the increasing number of spindles, the consumption of raw cotton is also increasing remarkably. As Bangladesh produces very little raw cotton, the spinning mills import almost all the required quantity of raw cotton from different sources such as the U.S., CIS, West Africa, Sudan, India, Pakistan and Australia. Raw cotton consumption in MY 2010/11 is forecast at 4.1 million bales (900,000 tons) benefiting from the new spinning mills coming into operation and forecast higher imports. Consumption in MY 2009/10 is estimated to reach 3.9 million bales (850,000 tons), nearly 14% higher than last year, on increasing demand from the rapidly growing spinning sub-sector and steady growth in domestic demand and strong growth in export demand for cotton textiles and ready made garments. This shows the wide gap between production and consumption (cotton production in Bangladesh is only 10,964 tons), which has to be fulfilled by the imports, so Bangladesh has to be rely on cotton exporting countries. Cotton prices not only very high but also volatile in the market now, which is ultimately affecting the final product prices. Uzbekistan is the main supplier of raw cotton with 47% market share due to competitive prices and a short delivery period followed by India due to its price competitiveness and geographical proximity. The share of U.S. raw cotton in the Bangladesh import mar-

Table 1. Area & Production of Raw Cotton in Bangladesh

Year

Area Harvested (Hectare)

2004-05 2005-06 2006-07 2007-08 2008-09 2009-10

44,000 49,770 42,100 28,707 32,600 31,500

Production Bales* Tons 73,190 13,310 77,000 14,000 70,530 12,824 42,380 7,705 50,600 9,200 60,300 10,964

*1 bale = 400 lbs. Source: Cotton Development Board (CDB), Govt. of Bangladesh

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ket has increased to about 13% in MY 2008/09 due to the new generation spinning mills coming into operation which prefer the high quality of US cotton. But the question is will the U.S. cotton remain competitive in terms of quality and price to offset the freight advantage and shorter delivery periods enjoyed by neighboring suppliers specially India and Pakistan. Raw cotton consumption in Bangladesh remained static last year following the global recession, erratic gas and power supply to industries and increased import of yarn from other countries.

Current Status of Bangladesh Spinning Industry Today, the Bangladesh spinning industry is a fast developing sector with high growth rates using modern and state-of-the-art machinery. However, the productivity of textile production as a whole and of the spinning industry in particular should be increased to fulfill the local demands of the RMG industry. The global market share of Bangladesh clothing exports reached 2.4% in 2009 whereas the global market share of Bangladesh textile exports was only 0.10% in 2005. Especially the weaving industry suffers from insufficient yarn production rates. Only 25% of the yarn demand in Bangladesh (by weaving industry) can be fulfilled by the local spinning industry. The spinning industry is growing in Bangladesh at a high rate in the range of 9% to 20% per year. The spindle capacity of Bangladesh increased from 2.3 million in the year 2000 to 7.6 million in 2009 which is very encouraging. At the same time, the growth of yarn production surpasses the spindle capacity growth rates, which indicates a recent modernization of production machinery with increased production performance during the last few years. Yarn consumption in MY 2010/11 is forecast higher at 940,000 tons. In MY 2009/10 consumption of yarn is estimated at 880,000 tons up by 7% from MY

2008/09 consumption on strong demand from weaving and knitting sub-sectors in the country. Due to larger domestic production, yarn imports in CY 2009 are estimated to decrease to 230,000 tons from 240,000 tons in CY 2008. Yarn imports in CY 2010 are forecast still lower at 200,000 tons due to large carryover stock of domestic yarns. India continues to be the principal supplier enjoying about 75% of the yarn imports due to the price and quality competitiveness. The consumption-production gap of yarn decreased over time, although actual consumption increased every year. The fabric manufacturing capacity of the country also increased over time. Such a backward trend indicates that the linkage expansion process of the Bangladesh RMG industry has already started, while the pace of expansion varies from stage to stage. (Still, many garment manufacturers in Bangladesh are interested in using imported raw materials instead of using local raw materials owing to price differences.) Spinning mills commissioned in recent years are capable to supply quality yarn required for the export oriented RMG sector but typically at 10-12% higher price compared to those sourced from China and India. Several spinning mills were forced to sell their yarn at lower than cost prices to clear their inventory. Consequently, several spinning mills stopped operation and a large number of other mills cut down their production by around 35%. The price of RMG inputs supplied by local sources is relatively high. Bangladesh Textile Mills Association source indicated that in December 2010 the price of 30 count yarn imported from India was US$5.25 per kilogram while the price of local yarn of the same count was around US$5.5 per kilogram.

Table 2. Production and Consumption Estimates of Yarn Year

Production Yarn ('000' tons)

Consumption Yarn ('000' tons)

2004/05

430

630

2005/06

464

680

2006/07

550

720

2007/08

602

760

2008/09

640

820

Sources: Bangladesh Textile Mills Association (BTMA),

Opportunity in Spinning Industry The challenges of the Bangladeshi spinners arises from a combination of contrasting factors. On the positive side, demand for yarns is high, and although raw material costs are increasing, good-quality yarns attract higher prices from an eager fabric-making sector - especially in knitted end-uses such as t-shirts. There is also plenty of potential for new investment in the industry, so that, in theory, spun yarn capacities could rise to meet domestic and international demand. The Bangladesh textile industry also benefits from able and knowledgeable leadership from its management, while both labor and energy costs are currently said to be lower than those of China. It all points to a strong sector with lots of opportunity for growth and increased profitability. Bangladesh has long tradition of ring spinning, which was historically confining mostly on medium and upper count, with the exception of past few years when an increasing tendency is observed for concentration on lower counts in between 16Ne to 30Ne mostly to meet the demand of knitwear & sweater manufacturing. Bangladesh high-count yarn mostly target traditional handloom sector that does not have any scope for dramatic expansion in the near future. Rotor spinning in Bangladesh has only a single decade history; the rotor spinning units are yet poorly organized by structure and designed mainly to consume waste cotton to produce low quality yarn rather than consuming virgin cotton & improved blends to produce high quality yarn for various high value twill fabrics. For higher productivity of yarn and for efficient space utilization, in the future Bangladesh has to increasingly go for rotor and air jet spinning with increased focus on low to middle count. Also limited use of friction spinning (DREF System) can be thought for the near future, in particular to produce novelty yarn with the blend of jute and cotton with manufactured fibers. The partial cause of low contribution by Bangladesh


24 Spinning

Textile Excellence Bangladesh Edition X February 2011

400

8.0

350

7.0

300

6.0

250

5.0

200

4.0

150

3.0

100

2.0

50

1.0

0

Spindle Capacity (Million)

No. of Mills

Fig 1. Growth in Bangladesh Spinning Capacity

0.0 1995 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Spindle Capacity

spinning sector to woven sector is also due to the deficiency to spin quality warp yarn using ring-spinning system. This is purely a technology management issue that has to be dealt seriously in the future with more technological knowledge and skill. Also Bangladesh needs deepening of its spinners' knowledge and enhancing their skill for long staple spinning with the inputs like polyester, acrylic, nylon, viscose lyocells, elastomeric fibers, etc. or their mixes. Further, more manmade fibers will be processed in future due to product diversifications (e.g. mixing of cotton and polyester). The reason for this prospect is that sooner or later all spinning companies try to increase their versatility (as a safeguard against market changes) and that actually worldwide markets increase their demand for mixed and blended materials to improve usage properties of yarns.

Since fashion yarns and the corresponding products are more value prone in the international market, Bangladesh should also go for production of various Integrated Multi-component Yarns such as, cover spun yarn, selfil yarn, ply yarns etc. There is very good potential to produce many demand oriented fashion yarns such as slub yarns, cabled yarns, flake yarns, spiral yarns, boucle or loop yarns, knot or spot yarns, chennile yarns, etc. Various types of high value mĂŠlange yarns for sweater and other knitters can be manufactured by Bangladeshi spinners using some special devices with the existing machinery chain of conventional rotor and ring spinning. In the future, Bangladesh needs to invest in long staple spinning technology for enhancing texturing effect to produce high value yarns. There is a need for qualitative improvement of high bulk yarn and loop

bulk yarn (e.g., coiled, curled, crimped yarn, etc.) and stretch yarns (e.g., heat set fibers, bi & multi constituent yarns, electrometric, and chemically treated natural fiber yarn, etc.). In filament spinning, particularly in respect of melt spinning technology, changes are to be brought to further improve the quality of draw texturised yarn (DTY), partially oriented yarn (POY), fully drawn yarn (FDY), etc. so that better quality textured yarn could be produced from them. Local Buyers Seek Education Local cotton traders and buyers are very interested to learn about the activities of ICA and all other cotton bodies, mainly in respect of training time to develop their professionalism in this field, but they can not get such opportunity in Bangladesh or any nearby country. Professional training seminars and workshops should be arranged by ICA in Bangladesh, so that they can take the advantages of this. As the textile sectors in Bangladesh are growing very fast and their prospects are very bright, all concerned related to the cotton world should give due attention to the needs of the Bangladesh market and take adequate measures to keep their respective contributions growing in Bangladesh's textile sectors.

Inadequate Skilled Manpower Textile is the backbone of Bangladesh Economy. Over the year's textile proved to be the engine of growth as it has been the 2nd largest sector for absorption of working force after agriculture. On the other hand, textile sector in Bangladesh is the largest single sector having highest investment of around 3.5 billion Euro. Over the last 3 decades this sector has achieved an un-precedented growth. Though huge investment have been made and latest state-of the art technology are being used in the textile industry, still Bangladesh is lacking behind in providing adequate knowledgeable skilled work force. Their modern machinery requires an adequate number of technically skilled employees for set-up of machines, repair, process optimization and maintenance. Bangladesh Research & Training for skill development, enhancement of efficiency & productivity of workforce in textile sector are not upto a satisfactorily level compared to their competitor. Without over all development including improvement of technology, increase in the number of skilled manpower, Bangladesh textile industry will be seriously handicap. Education has to support a fast developing and modern spinning sector.

Growth rates not only need investment of new production facilities but also highly skilled technical and management manpower. Deficient Power and Gas Supply Due to the lack of sufficient power supply, spinning industry has been under utlising their capacity whereas to be profitable spinners must have a higher capacity ulilisation. Textile industry zones in Dhaka, Narayanganj, Chittagong, Ashulia and Savar had been affected rigorously due to power crisis caused by low gas pressure. Supply of gas to such labourintensive export industries on a priority basis is the most realistic decision at this period. Gas supply was greatly hampering production in knitwear and denim sub-sector as those depend on gas-fuelled equipments for washing and dying. Gas shortage in dying and spinning units make their captive power generator idle. Availability of gas has now become erratic and this is now putting the industry into jeopardy as many of them are unable to achieve the targeted production level due to inappropriate gas supply. For Bangladesh, the future may hold a solution to the power supply problems, opening the door to much needed investment in greater cotton yarn „ capacity.

CROSROL OFFERS ULTIMATE CARDING EFFICIENCY THROUGH FLEXIBILITY FOR DIFFERENT PROCESS Material Flow Chart

T

he carding specialists, new innovation concepts on their new blow room machinery and the latest generation MK 7 carding machine is setting a milestone again in the global textile spinning industry. Crosrol's products are well accepted and have satisfied customers wherever these latest machinery are installed. Crosrol's long involvement at the forefront of carding technology has taught that the importance of correct fiber preparation which can lead to effective carding. The new Crosrol opening line gently opens and cleans the fibers in a

systematic way resulting in maximum cleaning whilst preserving the natural characteristics of the fiber for the carding process. As today's industries focus on ever increasing power costs, the latest compact Blow room line from Crosrol consumes less electricity and delivers highest possible efficiencies when compared to any other manufacturers in this field. The Crosrol MK 7 carding machine which gives the ultimate carding power achieved by optimising the three key influential factors of the carding process which are carding area, carding speed and the centrifugal force.

Precision setting for ulimate carding.

meet out the spinning mills demands to suit it for various cotton type and qualities that changes almost on a daily basis. The new Mk 7 card makes this type of methodology redundant, with the unique Crosrol waste control systems, Dial-in operating speeds and modular carding arrangements, all material dependent settings can be MK 7 Card Sliver Path changed within minutes allowing complete card settings to be changed faster than the bale lay down time of a blow room a line.

Here the expertise of the design department came out handy with a new revolutionary Dial-in settings (Crosrol patented) on it's taker-in waste control zone and the pre and post carding waste control zones that assures the maximum flexibility to

The added advantage is the unique modular concept for rapid optimisation of pre & post carding zones ensures effective opening & cleaning with maximum fiber realisation of the spinning unit application. The simple colour coded dial systems on the carding zones allow card operators to make precision adjustments to maximise fiber yield from any card with in seconds. Crosrol proudly feels that MK 7 card is the ideal and the most flexible card which correctly suits to any type of carding process „ in the spinning industry.

For details, contact: Unimpex Limited Jiban Bima Bhaban ( 1st Floor ) 121, Motijheel C/A , Dhaka - 1000 , Bangladesh Tel: +880 2 9552186 ,9553468 , Fax: +880 2 9552923 Cell : 01716859453, 01711520070 email : unimpex@citech.net

www.TextileIntelligence.com


Fashion Trend 25

February 2011 X Textile Excellence Bangladesh Edition

APPAREL RETAIL TRENDS IN 2010-2011 Deepak Jadhav Industry Analyst deepak@textileexcellence.com

R

etail, one of the largest sectors in the global economy, is going through a transition across the globe. For a long time, the corner grocery store was the only choice available to the consumer, especially in the urban areas. This is slowly giving way to international formats of retailing. Retail Marketing is largely based on three Vs- Value, Volume and Variety. Though the Retail marketing had the quantitative development across the globe, the quality is no doubt being compromised with the Globalization. International quality products are competing with indiginised products. This variation in size, quality & competition has made Indian market face ridiculous growth. As competition is between international & indiginised products, its taking great toll on both the sectors. Across time, there are big changes in any business from mere communication of product or service to sophisticated, & multi dimensional strategies. But, ultimate goal has always been the same. Profits. Changing trends will have a major impact in the businesses in the short term. There are many apparel trends that will manipulate the financial performance of a business, but a few of them are more vital than the others. Apparel Retailing Trends for 2010-2011: X Changing dynamics of Departmental stores X Embedding sustainability in the brand image X Increase in the retail technology spend-trend X Expansion of US stores into the Chinese market X Consumers will seek more for off-price retailers Changing

dynamics

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of

Departmental stores Key luxury players such as; Neiman Marcus, Nordstrom, and Saks feel the heat of prices of online retailers such as Vent-privee.com, Rua-La-La etc. To defend themselves in the online battle, these retailer players are maximizing their store counts of both their specialty stores, and off-price outlets. Mid level retailers such as JC Penny and Kohls attempt to push on their private labels, and exclusive brands which involves good profit margins. Fast fashion retailers will see a robust growth, especially for womens apparels as they have a short life cycle. Forever 21, H&M, Mango etc are a few to name. Specialty retailers attempt to distinguish themselves through unique designs, while over priced brands like Banana Republic, Fitch, etc will claim the responsibility of recession for their slow sales. Embedding sustainability in the brand image Sustainability in apparel business is picking up steam, and will have a vigorous growth with more and more new brands entering this arena. Brands like Urban Outfitters, Polo Ralph Lauren, Calvin Klein, and Guess will extend their operations in Asia, and Europe portraying a sustainable brand image. Increase

in

the

retail

technology spend-trend Advertising has become a powerful business. Starting from a small scale business, to huge employers with thousands of employees, and billion dollar revenues, every business depends of advertising powers such as print media, television, hoardings and many others. Now, with the advent of the internet, advertising has become the next big thing only to business itself. Though internet has been among us for a significant period, brand building and increasing commercial viability of a business has become a recent boom. Internet offers infinite number of choices with the user in control. Companies will tent to spend more on research and advertising. Expansion of US stores into the Chinese market During 2008, US retail giants like ZARA, and H&M were having a few number of stores in Beijing. Now more number of stores are springing up in cities like Tianjin, Wuxi, Qingdao, and Zhengzhou. Chinese apparel market has great potential, and many international brands have been rushing into the market during the recent past. Luxury brands like Burberry, Bottega Veneta, and Gucci will be opening more storefronts in more cities in China.

Consumers will seek more for off-price retailers Imperfection is what that makes off-price models available in the market. When a renowned brand miscalculates the customers perceptions and over manufactures a particular product, the excess inventory will be sold at a huge discount. Merchandise will be sold at 20-60% below the department store prices. The profit margin for the brand on selling these products will be lesser, comparatively over specialty stores. Fickle minded and selective consumers keep this market running. Major companies like Tommy Hilfiger, Express, Calvin Klein and many others will be shedding their inventory like this. More consumers will start seeking for off-price firms, value shopping options, encouraging its growth in the coming years. Beside these trends, most retailers have yet to make online push as social networking sites start to make an impact. Multichannel retailing continues to grow as more companies develop an e-commerce capability. However, online still accounts for a small percentage of sales. On average, online sales account for 6.6% of total sales for the top 100 retailers in the world. The internet is going to pose an evergreater challenge and opportunity for retail in the next

decade. Social networking will increase transparency in the retail industry, giving consumers greater access to information about retailers, their products and pricing. This has the potential to undermine margins by lowering prices to the level of the most desperate seller. There are great opportunities too, as new touch points open up for retailers to communicate with their customers. Retail spending growth in markets such as the US and UK is likely to be slower over the next decade, while a larger share of the growth will take place in countries with large surpluses, especially the big emerging markets. Retail apparel industry is optimistic for a quick growth in the current year making up for the losses of recession. Industry owners positively hope that during 2010, the industry will grow and build prosperity. Adopting potential strategies will prove vital to accelerate the growth of a business in the long run. In the leather industry the popular thing is Biker's jackets which are equally popular between bikers and ordinary people. The fashion trends of other things and styles may die with the passage of time but the trend of leather hot jackets among men of every profession can never ever die because it has a universally classic effect which attracts others and make men looking nice and adorable. In 2010 - 2011 leather garment jacket is the basic and main theme of men's catwalk or any designer's show with new and unique variations which would be adopted by the present generation and the next generation. These variations and styles are acquiring fame day by day. Leather jackets do not require any body shape or any other thing it easily can be fitted at each kind of body. This trend has got more fame in 2010 - 2011. „


26 EVENT

Textile Excellence Bangladesh Edition X February 2011

8TH DHAKA INTERNATIONAL TEXTILE AND GARMENT MACHINERY EXHIBITION T he 8th Dhaka International Textile & Garment Machinery Exhibition (DTG2011), jointly organized by Bangladesh Textile Mills Association (BTMA), Chan Chao Int'l Co.,

parts. Bangladesh has become the 4th largest RMG exporter in the world. The latest data from state-owned Export Promotion Bureau (EPB) said Bangladesh fetched $12.59 billion from

ery, equipment and materials. DTG2011 has been considered as the best Textile & Garment event in Bangladesh every year. The exhibits subjects range from textile to gar-

Ltd. Taiwan, and Yorkers Trade & Marketing Service Co., Ltd, Hong Kong is one of the largest yearly events in trade promotion areas in Bangladesh. During the fourday-event from February 13th ~ 16th, there will be over 600 exhibitors displaying a wide variety of stateof-art textiles and garments technologies, machinery,

garment exports last fiscal year, and contributed around 80 percent to national exports. DTG2011 is the definitive gateway to provide and create more opportunity for Bangladesh exporters to come into contact or deal with related manufacturers, regional agents and wholesalers at one place and source high quality machin-

ment, dyeing to finishing, embroidery to knitting machinery to related processing equipment and accessories. More than 860 booths with world class leading brands from Australia, Austria, Bangladesh, Belgium, Brazil, China, Czech Republic, Denmark, Finland, France, Germany, Greece, Hong Kong, India, Indonesia,

Italy, Japan, Korea, Malaysia, Netherlands, Pakistan, Singapore, Spain, Sri Lanka, Sweden, Switzerland, Taiwan, Thailand, Turkey, U.K, and U.S.A, will gather in one-stop selling and searching platform. DTG2011 has the strong support of key government Ministries and other institutions responsible for the expansion and development of the industrial sector. Organizers also invite local organizations, associations and industrial park to take part in purchasing, interchanging information and technology transfer and, conducting promotional activities and advertisement in ASEAN and SAARC countries. We believe the exhibition will ultimately accelerate technological advancement of Bangladesh and help increase productivity and competitiveness to meet domestic and export demand in the post MFA regime. Bangladesh has become one of the most potential

markets for industrial machinery and equipment. Industrial sectors and exports have gradually achieved better position every year. Bangladesh economy has been changing; it now faces the new stage and challenges of globalization. In the EU under GSP & EBA Scheme, Bangladesh textile products enjoy duty free access. This is a great advantage over other competitors, which will continue for at least a decade from now with the abolition of quota in the United State, Bangladesh will have a significant presence in the USA markets. Furthermore, Bangladesh also explored some new export destinations such as Japan, New Zealand, Canada, Australia, and some countries of South America and South Africa last year. Besides the low labor cost, skill development potential and an expanding market, government has provided various incentives for the sake of attracting foreign investment in textiles. DTG 2011 would be the most important exhibition in Bangladesh for textile and apparel industry this year. „

BANGLADESH HOLDS PREMIER CLOTHING TECHNOLOGY EXHIBITION

I

n the winter chill and sun intermittently peeped through mist and fog, the four-day textile and clothing machineries and accessories GARMENTECH Bangladesh 2011 exhibition was held with leading professionals from the industry crowding the venue of Bangabandhu International Conference Centre. Bangladesh jointly hosted the 10th international Apparel Machinery exhibition and Second International Fabrics and Accessories Sourcing Fair in capital Dhaka during January 12-15, 2011. A significant feature of the exhibition was that a large number of foreign buyers participated in it. They went around the stalls, care-

fully examined the products on display and in some cases placed orders. More spin-offs are likely from the exhibition, since many buyers, though they did not place immediate orders, were visibly impressed by the range and quality of the products. The scale of participation has been bigger than last year which demonstrates renewed interest in investment in technology. The first event was held with 40 participants in a park in posh Gulshan area of the capital. Now the event has attracted more than 200 entrepreneurs and exhibitors mostly from Europe, China, India, Pakistan, Thailand, Taiwan and Bangladesh. GARMENTECH is now the

country's premier trade show on apparel technology, fabrics, accessories and backward linkage allied services. Tomorrow's technology today! Current trade show has given an opportunity to ready-made-garments (RMG) industry to glimpse in latest technology in sewing, finishing, laundry, embroidery, CAD/CAM, printing technology from global producers of world class technology. Some exhibitors who came directly from China and India for the first time in Bangladesh seem very optimist and pragmatic. They were positive of the future of the rapid growing RMG, clothing and textile industries in Bangladesh and

GARMENTECH Exhibition entrance expect to make business deals. Besides the technology component, a sourcing fair, and international knowledge seminar series and techpodium providing sneak preview into the largest technologies was also organised expanding the scope and making it a complete trade show for the RMG industry. Prime Minister Ms. Shiekh

An Exhibitor demonstrating operation of a machine

Visitors at GARMENTECH

Hasina, Commerce Minister Mr. Muhammad Faruk Khan, MP, Industries Minister Mr. Dilip Barua, Textile and Jute Minister Mr. Abdul Latif Siddique, Bangladesh Garment Manufacturers and Exporters Association (BGMEA) Mr. Abdus Salam Morshedy, Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) Mr. A.K.M. Salim Osman and The Federation of Bangladesh Chambers of Commerce & Industry (FBCCI) Mr. A.K. Azad extended their felicitations for the success of the exhibition. Top political leader's felicitation reiterates Bangladesh commitment to the rising RMG, textile and clothing industries which employs the largest work force. In addition, it is largest export earning category for a third world country „ like Bangladesh. Saleem Samad is a Resident Editor of Textile Excellence Bangladesh edition

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Rendezvous 27

February 2011 X Textile Excellence Bangladesh Edition

BANGLADESH IS AN IMPORTANT MARKET FOR VSF: BIRLA CELLULOSE

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irla Cellulose is the umbrella brand of the Aditya Birla Group's range of cellulosic fiber. Birla Cellulose is a 100 per cent natural and biodegradable fiber. Viscose Fiber is one of the oldest businesses of the Aditya Birla Group that commenced in 1954. Today, the company is world leader in viscose staple fiber (VSF) and its production sites are spread across four countries, viz. India, Thailand, Indonesia & China. INDIA Grasim Industries Ltd., Nagda It is the mother unit of Birla Cellulose and produces a wide range of VSF including second and third generation fibers like Viscose Plus and Modal. The unit is also the largest producer of spundyed specialty fiber in the world. Harihar Poly Fibers Ltd. Manufactures rayon grade pulp; it was the first in India to use totally indigenous wood resources, and in-house technology for producing rayon pulp. It uses an innovative oxygen bleaching process to reduce the use of chlorine.

to achieve ISO 9002 and ISO 14001 certifications, as well as Oeko-Tex certification from BTTG, Europe. CHINA Birla Jingwei Fibers Co. Ltd., China VSF manufacturing plant is located at Xiangfan in the Hubei province of China. a) Maintaining its commitment to sustainable development, Birla Cellulose has a well drawn out environment management strategy in place. Environment concerns are textured into all manufacturing processes and business decisions. Also, the company subscribes to the United Nations Global Compact. Further, the company adopts clean technologies and processes that offer both economic progress and sustainable environment at all plant locations. Such environmental initiatives are reflected through the ISO 14001 Environment Management System Certified (EMS) and OHSAS 18001 standards as well as prestigious Environmental awards the company has received over the years.

position to supplement requirement of Bangladeshi Spinners to some extent. How much in roads Viscose fiber has made in to the Bangladeshi market? Viscose fiber has seen a very good growth in last 2-3 years. The major consumption of Viscose in Bangladesh has been Spun Dyed Viscose for melange in blend with cotton. Due to current crisis scenario in cotton, most of the spinners are looking for diversifying their products to non-cotton blends which will benefit fibers like Viscose & Modal. However, VSF also faces some typical issues related to levying of 15%VAT due to which total tax incurred on VSF imports goes up to 24.53% making it a bit expensive. On the other hand, on PSF imports there is no VAT), and the tax component is only 8.78%. We are hopeful that Government authorities would take immediate steps for removal of this anomaly and provide a level playing field. Also, as the country's textile and clothing industry is highly export oriented and Viscose

Grasilene Division, Harihar It manufactures viscose staple fiber with a focus on environment friendly management. The plant has developed a novel two pronged approach of environment protection and resource saving. Birla Cellulosic, Kharach Setup in 1997, a Deming Award winner, the VSF plant at Kharach employs the most modern technology that gives it a competitive edge in the export market. THAILAND Thai Rayon, Thailand Promoted in 1974, Thai Rayon is the sole manufacturer of viscose rayon staple fiber (VSF) in Thailand INDONESIA P.T. Indo Bharat Rayon, Indonesia Established in 1980, PT. Indo-Bharat Rayon (IBR) pioneered the production of viscose staple fiber (VSF) in Indonesia, and was the first

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How is the Bangladesh market for other fibers than cotton? Bangladesh Textile market is traditionally dominated by cotton fiber. More than 85% of the fiber consumed by local spinning mills is Cotton. Hence, At Birla Cellulose, we see a huge opportunity for fibers other than cotton in coming times to supplement the growing scarcity of cotton. Viscose Staple Fiber is most akin to cotton and is naturally in a

being in demand by overseas buyers, I am hopeful that the taxation on this fiber will be rationalised by the authorities to increase consumption base. What is the market Share Birla Cellulose has in Bangladesh and how it is placed against competition? Birla Cellulose has been instrumental in the growth of Cellulose based yarns in Bangladesh primarily due to

Karuna Changmai, Country Manager Birla Cellulose - Grasim Industries Ltd. Dhaka, Bangladesh its vicinity to our largest VSF manufacturing base i.e. India. We have also been meeting requirements of customers from our Thailand unit. Currently, Birla Cellulose has a market share of more than 75% of total Viscose Fiber consumed in Bangladesh. We have a well established local presence in Dhaka ably supplemented by regular visits of our Technical Services and Application Development Team. Due to constant interaction between Bangladeshi spinners and Birla Cellulose, now Bangladesh has become self sufficient in C/V melange yarn. We are supplying entire product range suiting all needs of specific customers like regular Viscose, Spun Dyed, Micro Denier, Modal & Micro Modal fiber from our manufacturing locations in shortest possible time & hence, are better positioned to serve Bangladeshi spinners than other manufacturers. How Birla Cellulose is assisting Bangladesh market to add value with Viscose fibers? Birla Cellulose is the largest producer of viscose fiber in the world. For exclusive service to all important Bangladesh Market, Birla Cellulose opened its country office at Dhaka in the year 2005. Apart from direct interaction with yarn spinners for marketing of cellulose fiber, Birla Cellulose offers dedicated technical services and business development services for Bangladesh Market. Technical Services team from Birla Cellulose head office at India and from respective plants visits customers at Bangladesh market periodi-

cally and often suggests and advises for process optimisation for better productivity and quality of the product. Technical Services team makes it a point to visit specific customers for new trials that need to be conducted during roll out of any new product. This service is not only offered to spinners but also to knitters and processors of forward value chain. Bangladesh Market remains a focus area for Business Development for Birla Cellulose. Business Development team along with experts from Textile Research and Application Development Centre (TRADC) of Birla Cellulose interacts with forward value chain (Knitters - Processors Garmenter - Buying Houses) in this market and produces and percolates various samples for product development purpose. In recent times, apart from dyed fiber for melange, Birla Cellulose has developed market for speciality fiber like Modal, Micro modal and Micro Denier fiber. How is the market evolving here in Bangladesh? Your comments on the future of Textile and RMG industry in Bangladesh. Bangladesh's Textile and RMG industry has a very bright future, provided it settles current power crisis as early as possible with long term solution. Now, for all leading brands across the world, Bangladesh is recognised as a major sourcing destination. Finally, we feel that it is high time for Bangladesh Textile industry to diversify their product line with renewed thrust into Man-made fibers like Viscose, Polyester & Acrylic for attaining global „ eminence.


28 In Focus

Textile Excellence Bangladesh Edition X February 2011

CHALLENGES OF BANGLADESH APPAREL INDUSTRY

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he Readymade Garments (RMG) sector in Bangladesh is a recent boom in industrial growth. From its nascent stage, entrepreneurs gradually overcome several challenges with both internal and external support, especially from international organisations and apparel giants. Nonetheless, it is, today, a growing vibrant industry and has broken the long tradition as the nation is bottomless basket, as dubbed by Henry Kissinger. The recent policy advocacy to realise workers' rights adds an important episode to the industry. The export-oriented RMG sector in Bangladesh has been developing almost entirely from the dynamism and learning abilities of the new generation private sector entrepreneurs. Of course the credit goes exclusively to the enterprising qualities of the private sector. Bangladesh was based on agrarian economy and export of cash-crops, mostly jute. A definite shift from a rural, agrarian economy to an urban, industrial economy demonstrates what Bangladesh is today. The poverty stricken nation of 156 million has risen to be role-model of economic development among the

least developed countries (LDCs). This is despite the attempts to make agriculture the primary engine of economic growth and employment generation for several decades. While this approach has made little headway, the so-called Green Revolution advocated by the Americans in 1960s fell short of expected results and displaced the rural labour force. However, in spite of numerous constraints, Bangladesh's economy has been on a steady growth path for the last 15 years, mainly due to private sector dynamism. The constraints including socio-political instability, frequent natural disasters, lack of infrastructure, necessary economic reforms etc. But this is not to say that government can or ought to be noncommittal about the RMG sector, especially at a time when it is faced with difficulties due to various developments, both internal and external. But there needs more proactive approach and solutions to the problems or challenges of the sector. Despite recent media hype regarding wage protests and riots, Bangladesh's apparel industry says it is gearing up for high speed growth in the

new year, fuelled by new EU GSP rules, new export markets and government support, writes Dilshani Samaraweera, a Sri Lanka based journalist and writes labour issues and international trade. Industry sources predicts that from 1 January 2011, under new EU GSP rules of origin, more Bangladeshi apparel will qualify for duty-free entry into Europe. The major challenges with the government are split into several fronts. Meanwhile, the Bangladeshi government has also started addressing back-end bottlenecks to apparel industry's growth. The congestion at the Chittagong port has significantly improved in recent months helping to shorten the 'lead time' in garments exports. But the government should extend further assistance by facilitating the reduction of port charges. Uninterrupted power supply to the RMG industry at affordable costs can be another major political decision of the government. Electricity interruptions are an immediate hold-up to industry growth. The government should also strengthen its diplomatic channels to lobby with foreign

Government authorities to allow duty-free access of Bangladeshi RMG products into its market. The USA is presently the single largest export destination of Bangladeshi apparels. On the other hand, the RMG exporters, too, need to continue their search for new markets rather than depending on few select countries. The process of achieving more backward linkages of allied services for the RMG sector began its journey few years ago. The industries dependence on imported raw material has been a major constrain to achieve competitiveness and shortening lead time. For maintaining healthy growth, the RMG sector needs a equally healthy and competitive raw material manufacturing industry. In spite of the developments, the existing backward linage industry can meet the needs of the RMG industries only partially. For ensuring further growth the linkage industries must increase in numbers. The government may extend its policy supports in this respect through additional fiscal and other incentives to these RMG industries. Steps can also be taken to lower the rate of interest on the institutional borrow-

SALEEM Samad

ings of these industries. The government should also encourage the growing of cotton on a large scale in the country for achieving significant value-addition in the sector. The entrepreneurs should also go for product diversification and produce highervalue apparels in order to further increase their earning from the RMG exports. Another speed bump, labour unrest, is also needs immediate attention. The aim is industry stability and gradual transition to higher value output. The RMG entrepreneurs have so far done reasonably well in addressing the compliance issues involving paying more to workers, improving working conditions etc. But the of the need of hour is to work collaboratively with the stake holders to chalk out solution rather than provoking unrest. Bangladesh is aiming to become the leading manufacturing destination for textile and apparel over the next decade and this not „ impossible.

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Textile Excellence Bangladesh Edition