Mr Munish Tyagi
Global Textile Leader & Intl. Textile Consultant
1. Introduction:
The new Cotton crop season 2023-24 is about to commence, and diff kind of supply forecast are on. The resilience
and potential of the global Textile and Apparel sector has started showing positive signs and, Yet awaiting retail
demand renewal for upcoming Xmas 2023 season. However, both the consumers and retailers have become
more savvy and selective in their consumption pattern and retail store fill up strategy. While retailers are going
for ‘near to shore’ or home sourcing; the consumers are clearly driving the sustainability choice with origin.
This autumn edition covers it all; On the changing landscape of the global Geo-politics dominated by recent aggressive thrust by Ukraine forces, and the imminent G20 conclave being hosted by India. This edition also covers the current state of India’s Textile indy, the emergence of new technologies like Advanced Chat GPT, and offering for a new project invest. proposals for a sustainable cotton Recycled project from Laroche based recycling lines to OESpg of yarns
2. Global Geopolitical Headwinds _ Their Impact on World T&C Trade to be favourable from Q3….
The global economy has been subject to uncertainty over last 1.5 years due to geopolitical tensions and conflicts. There are now positive signs of recovery from Q3/2023 onwards with inflation levels in control and retail demand to open for Xmas,23. The Europe has been able to manage its Gas supplies from Russia +1, and other supply chains are also under restoration. These positive events are expected to positively impact the global textile and clothing industry.
The global Geopolitics is also being dominated by expansion of BRICS block to another 7 and making it total 11 countries that control 60% of worlds GDP and would incl. Iran, SA and Africa. G-20 summit held by India, is another
milestone geopolitical event. With Mr Trump in fray for coming US Elections, geopolitics is on roll again. Incl. India s national election,2024.
3. The New emerging technologies for ‘Sustainable processes’ and deploy of AI and IoT digital controls to change the Textile Sector –
Despite the industry’s ongoing challenges, ITMA Milan-June 2023 brought forth a new and impactful focus on
increasing Digitalisation and Sustainability. processes with focus on innovation, automation, value -addition and
product develop. with clear directive to the textile industry to enhance Reuse/recycling and Renewal and now
clearly demanded by Both consumers and big retailers. The signal is clear that fake certificates are not acceptable n With emergence of advanced versions of Chat GPT, the AI generator, There is an ongoing race between the AI creator Open AI, the Google and the Microsoft to upgrade their AI chat platforms. New SGE by Google is new advanced version of such text/images creating Chat GPT in competition to Open AI s GPT-4 which is a large language model. Microsoft is also working to upgrade its MS Bing Chat to handle the competition. Once these developments enter the markets, the global Online and new internet users community will grow substantially and will be impacting some Text/visuals creating Jobs too.
4. Current State of Affairs for India s Cotton & Textiles Indy.
Global economic headwinds and reduced Retail demand have adversely affected India’s textile exports and industry, and more so for South India. The textile and apparel sectors have recorded a 30-35% decline in exports, leading to reduced production and capacity utlil’sn. Yet cotton prices are showing strange anomalies with upward trend. One side there is worst situation in yarn, fabric, garments order and market offtake, yet on another side
cotton price going upward.
Yesterday ICE future Dec.23 moved to 89.98 USC (+216 points) and MCX cotton November contract closed upwards at 61900 Rs. Per candy (while it was Rs 59000/candy just 1 week before)
Despite big plans for PLI 2.0 and mega Textile Parks, the lack of meaningful support or incentives for Textile sector has further exacerbated the situation. India needs to align its textile sector with global market demands, focus on sustainability, and export more of Technical textiles to regain its position in the global textile trade with enhanced MMF, polyster use
India s Textile and apparel performance have been declining
Cotton yarn exports are recording at 10 years lowest of 660 Mln TPA for FY 23.
India had a proud 20% share in global yarn export till 2018. For 23-24 .
However, the hoe textiles is a better performing sector esp.exports. Overall Hometex business is expected to rise
by 7-9% this fiscal year. The domestic cotton price adjustment is one of several crucial aspects that are essential to the revival of the home textile sector. Over 2021-22,Cotton RM costs had skyrocketed to previously unheard-of levels, hitting Rs 1Lac/Candy in May 22.
New cotton crop is estimated at 31 Mln Bales, indicating a shortfall in output. However, correction in cotton price to avg 58000-60000 Rs/Candy forebode well for the new crop. No wonder, cheaper PSF fiber from SE Asia is coming in at Rs 5-7/Kg lower ,and till atleast QCO is in place Oct,23.Overall the domestic and export demand stays weak and cold.
Our competitor B.Desh yet maintains its no.1 position into EU, but continues to battle with rising labour and gas costs, as also shrinking Export orders vis emerging competition from Africa.
5. Nuovatex “Knowledge Centre”:
The Nuovatex & Knowledge Centre’ herein offers new project development on the Recycled fiber /yarn of type OE ,with Offer of 10TPD Project for a Sustainable Integrated Reprocessed Cotton to reprocessed Cotton OE Yarn Spg/Manufacturing Project:
The resume here provides a window into a New textile Yarn Spg. project in line with the sustainability theme in the markets. A 10-12 Ton/Day Open end spg Unit,for Knttg.& wvg. yarns, is proposed using the RM of recycled Cotton waste from existing mills and regenerating the fiber from post consumer waste.
The proposal suggests establishing a composite Laroche based cotton waste Recycling plant of 10-12 Ton/Day with its baled output to create grey and colored fiber mixings to produce OE spun reprocessed yarns ,both grey and mélange types, for Knttg.and weaving, Denim uses, as also for Towel. Rotor or OE Spg is the ideal spg .technology for
recycling cotton waste and creating yarn of 6s to 34s.
The Project with capex of $ 10-12 million to have Payback of 4-4.5 years ,is recommended for industry site adj Cotton area and proximity to Mills.The Soft waste line is advised to be sourced from S.India machinery manufacturers
like M/s Perfect.
6. Conclusions and Road Map:
ITMA Milan 2023 demonstrated the global textile industry’s resilience and new commitment to sustainability and technology innovations. Despite challenges of slow markets, the industry remains adaptable and poised for transformation. As a key player, India needs to realign its Textile sector to meet changing market demands and
embrace sustainable practices.
The new PLI 2.0 scheme targeting project capex of INR 1000 Million and plus has Not yet taken off and, the deadline is extended till 31 Oct.23
The emergence of new technologies, such as newer “Chat GPT-4,” offers exciting prospects for early digitalisation. The global textile sector ,supported by the MNC Retailers and with new focus on sustainability and fiber trace etc, Yet holds great potential to thrive in a more environmentally conscious and innovative future.
India s digital revolution has taken the ONCD open e-comm platform to the buyers and sellers in MSME domain, as also the UPI based digital payment have touched merchandising value of INR 10,000 Million in July,23
However, competition from the fast emerging and cotton rich Textile countries like Egypt, Turkey ,Uzbek [and even Pakistan growing its textile exports to the level of $25 Billion] is a real threat for India s positioning. As repeated earlier, the need of the hour is to forge serious meaningful FTA for export of textiles to major markets like USA/EU/UK and also increasing penetration into new markets like S. America, Africa and Australia. Unless this is done. all new grand schemes like that of mega Textile parks ,or PLI 2.o or NTTM for tech textiles would be just failures.
