|`A Bulletin on post Covid dynamics of Global and India s Textile, Apparel industry s `
[ No. GTO 8/2021]
By Munish Tyagi, Global Textile Leader
Major Global Trends for Textiles & Retail
- Cotton prices ,yet upwards
The global Cotton price trends are ruling firm vis a vis expected higher consumption in new crop year.The ICE Cotton Futures for Dec.2021 at $0.95/Lb.
- Unprecedented growth in Online business
The global manufacturing and supply chain growth for the Q3 and Q4 for the covid 2021 period to be led by India, China ,Cambodia Pakistan for textiles.
Global economic recovery post Covid is expected to be mainly led by the above SE Asian countries led by China, India. However, in the textile domain the setback will be there due to yet severely Covid impacted countries of S. Korea, Vietnam and Bangladesh. Also, shortage of containers and high freight cost is upsetting the `apple cart` for both the the textile exporters and their buyers in USA and EU.
[Global textile recovery post Covid to be led by India subsequent to its lead via export of yarns, home textiles, terry Towel etc. and with no 3rd covid wave onslaught as of yet owing to 550 Mln vaccinations].
INDIA’S Mega Trends
- India’s cotton output for the season 2020-21 is now pegged at 34.5 Million Bales;and the projections for the new crop of 2021-22 estimated 35.5 Mln Bales. Cotton prices are still at a high leading to std 30s/1 Ne Cotton carded yarn ruling at Rs 256 /Kg. The corresponding 30 Ne Comb yarn at FoB, Rs 285/Kg.
- India’s overall textile Fiber production has nearly `doubled` over last 20 years. All fibers prod`n increased to new high of 110 Mln TPA in 2020 from 58 M TPA recorded in 2000.
- The Govt. is making focused efforts to sign new FTA `duty free `agreements esp. with UK, Australia and the UAE.This will improve India s competitivness.
- India‘s E- commerce retail markets are growing phenomally at 30% p.a to reach $ 120-130 Bln by 2026. However, major MNC e – co ` like Amazon and Walmart controlled Flipkart are facing strong headwinds from India s regulatory bodies and also from major New domestic e com retail players like big Indian corporates namely, Tata and Reliance Gr.
- [This has increased the pressure on the model of the likes of Amazon and Walmart,and will lead to their reduced share in India s growing E com markets from now onwards,registering 30%]
New Growth Engine for Indian Textile industry
1] The New growth engine to drive Indias export and textile manufacturing sector is perceived to be the new Ro DTPE scheme in addition to the continuing ATUF and the RoSCT scheme to help subsidise the domestic transaction costs of the Textile industry. The RoDTEP incentives will be in range of 3.1% to 3.8% of the export FOB value of Cotton/yarns. This will have a cap of about $0.27\ Kg for the export of cotton Yarn ,and $ 0.85 per Sq Mtr for Cotton woven fabrics.
2] It is also projected with ongoing 30% growth in the E commerce stream for domestic markets. Such Online retail is likely to displace the share of the traditional `shop trade`in 5 years that’s by year 2030.
3]The new segments of development and growth in domestic technical textile products are key engines of growth and uplift of India’s Textile and apparel/made ups industry.However, this growth stream is yet to pick up mainly due to cloudiness in understanding of right Tech-tex products and their consumption trends.
WAY FORWARD FOR INDIA’S TEXTILE INDUSTRY
The way forward and Road map for further expansion of India’s textile industry, and enhancing its global share to more than 5%, is clearly via increased focus on manufacturing and exports of Polyester and blended textiles and `value adding ` cotton products like Yarns and terry Towels, Knit apparels and also Technical Textiles and Home textile.
However,the exploration and entry into new Textile markets is a big ` Must` as also the duty free access to 3-4 key Textile markets with `duty free ` access into the preferential FTA agreements in competitiveness to GSP+ exporting countries like B.desh,Vietnam,other
NUOVATEX NEW TEXTILE PROJECTS OFFERINGS
|New Textile Projects _3 Nos export oriented|
|Project No.||Project Title||Project Capacity||Proj.Cost,Rs Cr||Proj.Period|
|1||Export focussed Unit for Terry Towels||10 or 20TPD||Rs 75 to Rs 115 Crore||12 to 15 Months|
|2||Cotton Yarn Mill with Ring and OE spg||15 to 25 TPD||Rs 75 to Rs 105 Crore||15 to 18 Months|
|3||Multineedle Tufting unit for export Bath Mats ,with Dyg & back Coating||200 to 250 TPM||Rs 15 to 18 Crore|
|Mail us for Turnkey Proj. Execution.|