Introduction: TO NEW MINI OUTLOOK
This new mini format `Mini Outlook` focusses on the changing landscape of global macro trends, and India’s Textile
sector, its current domestic and export status vis a vis the emergence of new technologies with Sustainability theme, and a new project proposals for a New sustainable integrated cotton-to-knit apparel project of 10 TPD incl. 5 TPD of Rotary Printing.
1.0:Global Geopolitical Headwinds and, Their Impact on World T&C Trade:
For the last 2 years, and amid the after effect of Covid 19,the US_ China trade war and and then the Russia-Ukraine war; the global economy has been subject to uncertainty due mainly to the above said geopolitical tensions and conflicts and their impact on the global supply chains and hike in the cost of RM and, sourcing by supply chains.
These major geo political Events did lead to the near `recession` in global economies and especially their severe and damaging and regressive impact on the global Textile, retail and clothing .
2.0: Does ITMA June 2023, heralds a new hope and pick up in investments in the global textile industry …? ?
Despite the industry’s ongoing woes and challenges, ITMA Milan 2023 witnessed overwhelming interest from
global textile and technology companies ,and of course from Entrepreneurs, technicians and professionals. The
writing on the wall was very clear i.e the old technologies and processes need to fade away in favour of new technologies that are digital, automation and Iot 4.o based and support Sustainability for a green industry for future.
All leading participating companies showcased new technology focused on Sustainability theme of complete life
cycle with reuse /recycling, and reduced load on natural resources. Leading Fiber to fabric process mcy man`frng companies such as Rieter, Truzchler, Laroche, Saurer, Reggiani, Theis, MCS, and Brazzoli presented innovative solutions for sustainability and eco-friendly manufacturing processes.
The ITMA expo has clearly established the roadmap for future way for survival of Textile industry via sustainability
ways
SIGNALS FROM THE US AND THE EU MARKETS ARE CLEAR ABD TO BE UDERSTOOD AS,
1. The USA has bene able to reign in the inflation to 2% level and, this will support the consumption,
2. EU has recently drafted new tougher regulations for textile imports and, that will support sustainable
products.
The Current `Sorry ` State of Affairs in India s Cotton Textiles industry and markets.
Global economic headwinds and reduced demand have adversely affected India’s textile and export industry. The textile and apparel sectors experienced a decline in exports, leading to reduced production and lower viabilities.
India s Cotton output for the new 2023-24 crop is forecast at 5.7 Mln TPA, yet its price parity for Yarn spg mill sector is a question mark ? Indi a s export of textiles & clothing have taken a big hit and fallen from $44 Blb for year 2021-22 to much lower level of $ 35 Billion for year 2022-23.
India critically needs to align its textile sector with global market demands, focus on sustainability, increased use of MMF fiber and invest in bulk man`frng of technical textiles to regain its position in the global textile trade. Unless this happens with serious FTA s and soon enough, the new schemes like PLI2 may be failures
Is there a `Shining star` in India s textile sector,other than Welpun ? Check the figures… ?
India s leading global Textile corporate s have delivered poor equity results vis a vis the BSE index. The only good results are from home textile major exporting Co. Welspun India .Its share price was up +5% to ouch 1-years high due to increased margin and net profit.
The other major Textile corporates, like the Trident Gr. have reported 30% less profit for Qrtr 1 of 2023-24,esp. due to weak demand in its key Yarn sales segment. Even major denims exporter like Arvind Mills revenue and profit for the Denim segment had a big drop with Q1 profits falling to INR 658Million from last year 984Mln.
The performance of leading Hosiery apparel man`frng cos like Page
Nuovatex & Knowledge Centre’:
The Nuovatex & Knowledge Centre section highlights two new technologies. The first being the & Pre-Oxidized Acrylic Fibers,& highlighting their uses in flame-resistant clothing, aerospace components, and filtration media. The second being the serious potential of & Chat GPT,& a new AI-based search technology that holds intelligent conversations, potentially revolutionizing various industries with auto `writing and composing capabilities such as
teaching, journalism, and call centres. Lets see the game play and impact of India s own Chat GP in making.
Nuovatex offers a New MSME size Project of 10 Ton/Day for a Sustainable Integrated Cotton to Knit Apparel Manufacturing unit of INR 350 Mln.
Nuovatex hereunder proposes an integrated knitting to Dyg and knits OW finishing project of 10Ton/Day sustainable, integrated cotton-to-knit units with captive 5 TPD of Printing. The proposal suggests establishing a composite Knitting to finished knit fabric of type Open width, and with recycled yarns as RM. Such dyed knit fabrics in diff. GSM and cuttible width on rolls will be used as input for sustainable apparel production. The ,project aims to target both domestic and export markets, with recycled as focus.
ROAD MAP AND WAY FORWARD:
ITMA Milan 2023 demonstrated the global textile industry’s resilience for early `Recovery` and its gear shift with global Retailers commitment to sustainability and innovation. Despite challenges of diminished demand, the industry remains adaptable and poised for transformation towards digital/IoT 4 industry and, with Sustainable processes . As a key player, India also needs to realign its textile sector to meet changing market demands and embrace sustainable practices. The emergence of new technologies, such as AI, ML and `super critical dyeing, etc. offer exciting prospects for Textile manufacturing. In our considered view ,The global textile sector holds great potential to thrive in a more environmentally conscious and innovative future. However, cost and economic viability of sustainability and its processes needs clear understanding of cost components.
