Archive for April, 2007
CNMI Govenor rejects the lowering of user fees for garment factories
Radio New Zealand International, New Zealand
Posted at 23:16 on 29 April, 2007 UTC
The Governor of the Commonwealth of the Northern Marianas, Benigno Fitial, has rejected a bill lowering user fees to be paid by garment factories.
The Saipan Tribune quotes the governor saying the reduction would only cause the government to lose more revenues, while doing little to help the apparel industry.
Mr Fitial said at a time of severe economic need, the Commonwealth couldn’t afford to reduce this important source of revenues for the CNMI.
In his State of the Commonwealth Address last week, the Govenor reported that total government revenue from all taxes and fees paid by garment factories had declined from nearly $80 million in 2001 to
$30 million in 2007.
The single largest garment tax, the Customs user fee, has dropped from $37 million to $11.5 million for the same period.
April 30th, 2007
Basan acquires cleanroom consumable and garment manufacturing businesses
Controlled Environments Magazine, NH
The Basan Group, which distributes cleanroom products and services in Europe, said it has acquired the Europe and Southeast Asia cleanroom consumables and garment manufacturing business of Metron Technology, Inc.
Basan will take over the operations of Metron cleanroom consumables as of Friday in Belgium, Germany, France, Ireland, Italy, Malaysia, the Netherlands, Singapore and the UK.
In addition, a production plant for cleanroom garments in Malaysia was acquired from Metron Technology. Basan, which has its UK headquarters in Basingstoke, expects Southeast Asia to offer increased growth opportunities
Basan has 25 years of experience in the cleanroom consumables and garment manufacturing business.
Source: Basingstoke Business News
April 26th, 2007
India: AEPC feels rupee appreciation affects garment exports
YarnsandFibers (subscription), India
24 Apr, 2007 - India
The Apparel Exports Promotion Council has appealed to the government to halt appreciation of the Indian rupee against the US dollar as the appreciation has started affecting exports in the form of lower unit value realization, said Vijay Agarwal, Chairman of AEPC in a statement
The Indian Rupee has appreciated from Rs 45.61 in August 2006 to Rs 41.88 till date and in comparison, the Pakistani Rupee has depreciated by 1.33 percent during April 2006-2007.
Similarly, the Indonesian Rupaiah has depreciated by 0.36 percent during the same period; the appreciation of the Bangladeshi Taka has been 1.95 percent in April 2006-2007, while the Chinese Yuan has appreciated by 7.24 percent.
The chairman clarified that the council has arrived on the view only after re-accessing the exports scenario as the strengthening of India rupee is particularly detrimental to low import intensive & price sensitive industry, like clothing, as profit margins are rather lower than other commodities.
Also the competition is getting adversely affected, which is further leading to decline in exports of textile and clothing.
Consequently, this has lead to a shortfall in achieving export targets for the industry, which may also lead to shifting of export orders from India to neighboring countries, and impacts the employment scenario in our industry.
Vijay Agarwal commented that the exports of clothing to major destinations like US has slowed down in January 2007 and their is quite concern in industry over relevant as the US market accounts for 35 percent of India’s textile and clothing export.
On the other hand, the ministry of textiles has revised the target of the readymade garment sector as US $10.5 billion for 2007-08 against US $9.5 billion for year 2006-07.
AEPC is of the view that the apparel industry needs continuous support of the government and feels that they should immediately intervene in the functioning of the industry for halting the further appreciation of the rupee.
Source: Press Trust of India
April 25th, 2007
India: AEPC feels rupee appreciation affects garment exports
YarnsandFibers (subscription), India
24 Apr, 2007 - India
The Apparel Exports Promotion Council has appealed to the government to halt appreciation of the Indian rupee against the US dollar as the appreciation has started affecting exports in the form of lower unit value realization, said Vijay Agarwal, Chairman of AEPC in a statement
The Indian Rupee has appreciated from Rs 45.61 in August 2006 to Rs 41.88 till date and in comparison, the Pakistani Rupee has depreciated by 1.33 percent during April 2006-2007.
Similarly, the Indonesian Rupaiah has depreciated by 0.36 percent during the same period; the appreciation of the Bangladeshi Taka has been 1.95 percent in April 2006-2007, while the Chinese Yuan has appreciated by 7.24 percent.
The chairman clarified that the council has arrived on the view only after re-accessing the exports scenario as the strengthening of India rupee is particularly detrimental to low import intensive & price sensitive industry, like clothing, as profit margins are rather lower than other commodities.
Also the competition is getting adversely affected, which is further leading to decline in exports of textile and clothing.
Consequently, this has lead to a shortfall in achieving export targets for the industry, which may also lead to shifting of export orders from India to neighboring countries, and impacts the employment scenario in our industry.
Vijay Agarwal commented that the exports of clothing to major destinations like US has slowed down in January 2007 and their is quite concern in industry over relevant as the US market accounts for 35 percent of India’s textile and clothing export.
On the other hand, the ministry of textiles has revised the target of the readymade garment sector as US $10.5 billion for 2007-08 against US $9.5 billion for year 2006-07.
AEPC is of the view that the apparel industry needs continuous support of the government and feels that they should immediately intervene in the functioning of the industry for halting the further appreciation of the rupee.
Source: Press Trust of India
April 25th, 2007
BANGLADESH: Garment sector in for further setbacks
BharatTextile.com (subscription), India
DHAKA:There are hundreds of cases pending in the Bangladeshi courts between the foreign buyers and Bangladeshi garment owners. These cases are for cheating the buyers by supplying substandard goods, sending less quantity of goods, and not paying outstanding dues.
The national Readymade Garment (RMG) industry faces boycott from the buyers as they have shifted to neighbouring countries causing the garment sector to loose business worth crores.
Factories often knowingly accept unworkable delivery dates fearing that otherwise they will lose the order to competition. This results in supplying substandard goods to the buyer. Almost all shipments from Bangladesh are delayed from the due date.Contrary to Bangladesh the European climate is seasonal and goods received late are often difficult to sell. The Bangladeshi suppliers do not look at the delivery date as important clause of the contract.
Since there is no quality control, difficult banking system regarding L/C, bureaucratic obstacle over deducting agreed discount from the payment it’s difficult for the foreign buyers fo continue.
Since the manufacturing is done in haste there is no quality control.Many toimes it found that, goods with bad smell to the garments,yellow garments instead of off white colour, and goods with no legal composition label on each piece are shipped.
European buyers rightly or wrongly analyse these as a lack of reliability of supply over-delivery, quality, possibility of retrieval of claims - from Bangladesh, and despite GSP advantage it is finally safer and easier to purchase from other sources especially China even at a moderately increased cost.
This is resulting in the European buyers looking for alternative markets.
April 23rd, 2007
6 garment parks in Bengal soon
Financial Express, India
KOLKATA, APR18 : West Bengal will have at least two integrated garment parks in two years at an estimated investment of Rs 600 crore. Apart from this, at least four garment parks will come up in and around Kolkata.
The largest park, being promoted by Bengal Integrated Textile Park Ltd, a special purpose vehicle formed for the project, will receive an initial investment of more than Rs 500 crore.
Murari Lal Khaitan, president of the Chamber of Textile Trade and Industry (Cotti), said: “The market for textile fabric and made-ups in West Bengal is almost Rs 25,000 crore, of which 10-15% is produced by the state.”
“This leaves us with room for growth,” said Binod Nangalia, chairman of Cotti. “The integrated garment parks will be of international standard and will cater to the demands of both domestic and export-oriented units,” he said.
Cotti, awaiting the approval of the Union government to include it in the Scheme for Integrated Textile Parks (SITP), feels the project will house 300 small and medium entrepreneurs. Once approved, the parks will receive a grant of Rs 40 crore towards infrastructure cost.
The Bengal Hosiery Association and the West Bengal Hosiery Association have planned an integrated garment park on 70 acres. The project, filed with the SITP, will receive an initial investment of Rs 40 crore. “We are looking for land in Rajarhat or near the Kona expressway,” said Srimay Bannerjee, president of the Bengal Hosiery Association.
The four garment parks include the one that will be developed by the state government. The Eastern Garments Manufacturing Association will construct a garment park in Salt Lake on 13 acres.
The Bengal Hosiery Association is in the process of constructing a park at Belgharia in North 24 Parganas.
April 19th, 2007
Strong Re hits garment exporters hard
Moneycontrol.com, India
The dollar’s hammering is now starting to hurt garment exporters, and soon most exporters may prefer moving to low-cost producing countries like Bangaldesh and Vietnam, reports CNBC-TV18.
First it was the IT industry, which said that the rupee appreciation against the dollar would hurt margins and now it is the textile sector, which is crying foul. Garment exporters say they are running into losses, as they are working on 5-7% margins, compared to the domestic currency that has strengthened nearly 9% against the dollar.
Exporters say they don’t expect even bottomlines to be spared and see a likely erosion of 10-15%.
SK Saraf, Chairman, Federation of Indian Export Organisation says, “Once the buyer goes, we would face with double loss”
Textile exporters say that they have already seen a drop of more than 9% in exports to the US and the EU in the financial year that has just ended.
Besides, getting orders for the winter season from the US and the European Union will only get tougher as buyers are not ready to pay a higher price for Indian garments.
Buyers from the West are likely to shift to low-cost textile hubs like Vietnam, Thailand, Malaysia, even Bangladesh and Pakistan. To tackle the competition exporters would have to import cheaper raw material from these countries
Mohan Nihalani, President, Importers’ & Exporters’ Association says, “This trend is accelrating and we have seen exporters import fabrics from south east Asia, where it is cheaper but still most poeple are not accustomed to do that.”
Some exporters say they might start moving production to lower cost producing countries. However they do hope that the RBI and the Government will step in to control the rupee appreciation to avoid any more financial loss.
April 18th, 2007
China : Garment sector seeks to be part of global brand culture
April 16, 2007
Fibre2fashion.com, India
As everyone knows, China’s textile and apparel exports have been mainly in OEM processing. In the whole industry chain, enterprises in OEM processing only earn about 10 percent of the total market profits.
Therefore the high-speed growth relying on such a low value and huge volume has given China garment the pronoun as low-end and low-priced clothing in the world.
Although China’s garment manufacturing level has leaped up to the top of the international mainstream market, becoming the world’s largest garment producer, apparel consumer and clothing exporter, the lack of internationally renowned and independent fashion brands has left Chinese garment ‘great’ but ‘not powerful’.
In comparing with international brands, it could be said like this, if Chinese apparel brands solved the problem of learning and imitation in the previous 10 years, then in the next decade, garment industry should solve the problem of being alike in spirit of brand culture.
China garment must arm their brands with culture, pay more attention to design, improve value-added production, if the industry wants to become more competitive and seek a greater say in the international market in the next 10 years.
Fibre2fashion, News Desk - China
April 17th, 2007
CDA plans housing project for female garment workers
Our Correspondent
4/16/2007
Financial Express.bd, Bangladesh
CHITTAGONG, April 15: Chittagong Development Authority (CDA) has undertaken a housing project to ensure security and provide accommodation facilities exclusively for female garment workers who constitute the major portion of total working force employed in the main export earning sector of the country, sources said.
The project to be implemented from CDA’s own fund with government assistance would provide accommodation facilities to 1000 female garment workers in Chittagong. Dormitories and 100 small-sized flats would be constructed over two acres of land in the port city’s Saltgola area.
The project will have all possible improved facilities including a market, a hospital, open grounds and gardens. It would be the first step towards lessening the acute housing problem of the female garment workers in Chittagong.
According to the concerned sources, there are over 0.3 million female garment workers in Chittagong employed in different garment units. Owners of the garment industries have not yet been able to provide accommodation facilities to them despite their immense contribution to the national economy.
The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) has termed the initiative an encouraging and laudable one as it would enable the female workers to discharge their assigned duties in a very secured and pressure-free atmosphere.
The CDA sources said the project profile has been sent to the ministry, and the task of implementing the project would start on obtaining approval of the competent authority
More Headline
Thrust on people’s involvement in combating climate change risks
CDA plans housing project for female garment workers
Nine persons killed in separate incidents
Telecom fair begins in city today
Chief Engineer of R&H Deptt appointed
Anniversary of Ataul Huq’s death today
Irregular train service troubles travellers
April 16th, 2007
Food for thought: Hi-tech garment futures
Sunday Times.lk, Sri Lanka
While the pressure is building for faster service, lower costs and better quality, some industry experts are advocating even bigger changes than productivity improvements and cost cutting measures. They point out that the garment industry future could be a hi-tech one where virtual reality could become reality.
A future driven by information communication technology, where garment buyers don’t have inventory headaches and garment manufacturers convert emails into customised garments.
“The garment industry is stuck in a time warp,†says Ashroff Omar, the CEO of Brandix Lanka, Sri Lanka’s largest exporter. Omar was speaking at the Textile Institute World Conference held in Colombo. He points out that the garment industry has not kept pace with the tech-revolution.
“Every retailer has launched some kind of programme to increase speed of supply but sourcing calendars are still running into months and not days. A recent survey showed that only 30% of people buy the correct size clothes. The clothing styles are conceived 6 to 12 months ahead and the customer pays well over the cost of manufacture,†says Omar.
Omar says that these problems can be easily addressed through available software and communication technologies. “It is possible with today’s technology to customise your own design to fit your body shape and get the latest fashion,†says Omar. For a perfect fit a customer can be scanned and clothing can be made to the measurements obtained from the scan. The customer could also specify, using software tools, their own designs and colours to keep in step with the latest fashion trends. These orders can be sent to manufacturers in countries like Sri Lanka using electronic mail.
“This way retailers can have smaller stores with only some samples. There will be no need for distribution centres and inventories. So you can rip these costs out,†said Omar. How much of this vision can be converted into reality though is uncertain. But Omar quoting Thomas Friedman’s, The World is Flat, says that “If you want to flourish in this flattening world, you better understand that whatever can be done will be done - and much faster than you think. The only question is whether it will be done by you or to you. Will you drive the innovation or will one of your competitors use it to drive over you.â€
April 13th, 2007
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