FW
India’s cotton production is expected to decline to 29.9 million bales in 2024-25, the lowest in six years, due to reduced plantings and stagnant yields. A decade ago, in 2013-14, Indian farmers harvested a record 39 million bales, with one bale equating to 170 kg. While domestic needs have so far been met by the 30-31 million bales of annual production, the current fall threatens India’s textile export sector. In 2023-24, India’s cotton textile exports reached $10.4 billion, including garments, fabric, and yarn. Additionally, the country exported raw cotton worth $1.1 billion.
India aims to achieve $100 billion in textile exports by 2030. Cotton accounts for roughly one-third of the nation’s exports, with the rest being man-made and other natural fibers like wool, silk, and jute.
Improving cotton yields is seen as crucial for maintaining India’s edge in textile exports. Better yields will help cotton compete with man-made fibers (MMF), which are cheaper and offer enhanced functional properties like breathability, says Prabhu Damodaran, Convenor, Indian Texpreneurs Federation. Cotton remains a preferred material across markets and that every additional $1 billion in apparel exports could generate at least 150,000 jobs, he emphasises.
Valued at $165 billion, India’s textile exports are projected to grow to $350 billion by 2030, indicating an increase in demand for raw cotton beyond the current 31 million bales requirement in 2024-25. The sector employs 45 million workers directly, with another 6 million farmers involved in cotton cultivation.
In recent years, a spike in international cotton prices has led manufacturers to turn to MMF. The share of synthetic fibers in the textile sector has surged from 10 per cent to 30 per cent in the last 2-3 years, according to Raja Shanmugan, a textile exporter from Tiruppur, Tamil Nadu. He warns that India’s lower cotton output could force manufacturers to rely on imports if farmers switch to other crops.
USDA forecasts, India may become a net cotton importer in 2024-25, only the second occurrence in 20 years. This shift is partly due to falling global cotton prices, which may affect the competitiveness of Indian exports.
According to the latest data released by the General Administration of Customs, China’s textiles and apparel exports (T&A) saw rapid growth in Oct’24.
In CNY-denominated terms, China’s textiles and apparel exports increased by 3 per cent Y-o-Y to 1.76 trillion from Jan- Oct’24. Among these, textile exports increased by 5.8 per cent Y-o-Y to 829.52 billion yuan, while apparel exports rose by 0.7 per cent Y-o-Y to 932.75 billion yuan. In Oct’24, China’s T&A exports increased by 8.5 per cent Y-o-Y and 2.3 per cent M-o-M to 180.65 billion yuan. During the month, China’s textile exports increased by 12.6 per cent Y-o-Y to 87.83 billion yuan while apparel exports rose by 4.9 per cent Y-o-Y to 92.82 billion yuan.
In US$-denominated terms, from Jan-Oct’ 24, China’s cumulative T&A exports totaled increased by 1.5 per cent Y-o-Y to $247.89 billion. Among these, textiles exports reached $116.69 billion, increasing by 4.1 per cent Y-o-Y while apparel exports declined by 0.7 per cent Y-o-Y to $ 131.2 billion In October alone, China’s T&A exports increased by 11.9 per cent $25.48 billion. Of this, textile exports expanded by 16.1 per cent Y-o-Y to $12.39 billion while apparel exports rose by 8.1 per cent Y-o-Y to $13.09 billion.
S Savita, Minister for Handlooms and Textiles, Andhra Pradesh, shares, the TDP Government plans to announce a new textile policy for the state.
The government will also set up a textile park in Yemmiganur as part of the 2015 Independence Day celebrations in order to assist the community of weavers. It has allocated 90 acre for the park, Savita added.
Like many other industries, the textile sector allegedly suffered during the previous YSRCP government. The YSRCP Government set aside nearly 14 acre of the textile park’s land for housing projects, causing the beneficiaries to petition the court for a stay in order to preserve the property.
Additionally, the government will also establish textile parks in Rayadurgam, Mylavaram, and Pamidi, etc. It would also create a textile park and a handloom park at Chirala.
The government also aims to raise funds from the Central Government for weavers’ welfare, notes Savita. Additionally, it would provide tools with 90 per cent subsidy. The Central Government has also approved funds worth $3.55 million to establish a huge textile park in Dharmavaram, she adds
The escalating trade war and resulting tariffs are taking a toll on the US apparel industry, driving up prices for consumers and squeezing businesses. The American Apparel and Footwear Association (AAFA) has warned the current tariff policy, particularly the Section 301 tariffs imposed on goods from China, is boosting inflation in the apparel sector. These tariffs, implemented in 2018 under the Trump administration, have led to a 40-year high in clothing and footwear prices.
"Tariffs are taxes paid by US-based businesses and American consumers, not on China or other supplier countries," stated Steve Lamar, president and CEO of AAFA. "These tariffs disproportionately harm lower-income American consumers and female consumers with higher tariffs on lower-priced products and on women's clothes and shoes."
Impact on pricing
A study by the Peterson Institute for International Economics estimated that the tariffs on Chinese goods resulted in a $51 billion increase in annual consumer costs for apparel and footwear. This translates to an average price increase of 5.7 per cent for clothing and 4.8 per cent for footwear. For example, H&M, one of the world's largest fashion retailers, reported a 3 per cent decrease in operating profit in 2019, partly due to increased sourcing costs from China. The company was forced to raise prices on some items to offset the impact of tariffs.
Table: Price increase
|
Product category |
Average tariff |
Price increase |
|
Women's apparel |
16.10% |
7.10% |
|
Men's apparel |
11.80% |
5.10% |
|
Children's apparel |
11.30% |
4.90% |
|
Footwear |
10.70% |
4.80% |
Source: Peterson Institute for International Economics
Reasons for tariffs
The tariffs were primarily introduced to address concerns over China's trade practices, including intellectual property theft and forced technology transfer. The US government argued that tariffs were necessary to protect American businesses and jobs. However, experts warn further increase in tariffs could push inflationary pressures and lead to higher prices for consumers. A study by the US International Trade Commission projected that a 25 per cent tariff on all Chinese imports would increase apparel prices by an average of 13.4 per cent. . "Tariffs are not the answer to our trade challenges," said Myron Brilliant, executive vice president and head of international affairs at the US Chamber of Commerce. "They are a blunt instrument that is harming American businesses and workers."
Meanwhile the National Retail Federation has called for the elimination of tariffs, arguing that they harm American businesses and consumers. The US Chamber of Commerce has also advocated for tariff removal, stating that they create uncertainty and hinder economic growth. "The tariffs are a hidden tax on American families," said Matthew Shay, president and CEO of the National Retail Federation. "They are making everyday necessities more expensive and hurting our economy."
The ongoing trade war and the resulting tariffs are having a significant impact on the US apparel industry. While the tariffs may have been intended to protect American businesses, they are ultimately hurting consumers by driving up prices. A resolution to the trade dispute and the removal of tariffs would provide much-needed relief to the apparel sector and American shoppers.
Leading textile firm, BSL’s Q2, FY25 net profit increased by 9.3 per cent to Rs 2.5 crore while its revenue for the quarter grew marginally to Rs 179 crore as against Rs 178 crore in the corresponding quarter of the previous fiscal year.
Nivedan Churiwal, Managing Director, BSL, says, the company’s H1, FY25 revenue also increased by 341.8 crore while net profit expanded by Rs 4.8 crore demonstrating strong demand in the market and sound operational execution.
BSL has successfully maintained its growth trajectory by expanding into new markets and strengthening connections with its current customer base, creating a strong foundation for further growth. Having a positive outlook for the upcoming quarter, the company anticipates an improvement in the performance of the domestic and international textile sector, he adds.
BSL operates a vertically integrated unit integrating spinning, weaving, processing, and manufacturing capabilities. Besides ‘BSL,’ the company also sells premium fabrics under the ‘Geoffrey Hammonds’ brand.
A subsidiary of Japan’s Fast Retailing Co, Uniqlo India aims to hit the Rs 1,000-crore sales milestone this fiscal year, maintaining its annual growth trajectory of 30 per cent. Kenji Inoue, Chief Operating Officer, says, the company aims to embark on a retail expansion besides increasing local sourcing.
India is a key market for Fast Retailing, which recently reported annual global sales of 3 trillion yen (approximately $20 billion). The company has set its sights on tripling sales to 10 trillion yen in the future, with India playing a crucial role in that strategy. It has been an annual growth of 30 per cent and believes, the Indian market has tremendous potential.
Since opening its first store in India in October 2019, Uniqlo has expanded its footprint to 13 locations. By Nov’24-end, this will increase to 15 stores, with new outlets launching in Mumbai’s Phoenix Palladium and West Delhi.
Uniqlo India reported a 31 per cent rise in revenue to Rs 814.84 crore and a 25 per cent increase in profit to Rs 85.17 crore for the financial year ending March 31, 2024. The company has achieved profitability within three years of starting operations in India, reaching that milestone in FY’22.
When asked about reaching the Rs 1,000-crore target, Inoue confirmed the company’s ambitions, noting that the success of new stores like the one at Phoenix Palladium will be instrumental.
Uniqlo India also aims to enhance its local production by sourcing 18 per cent of its products locally by 2025, as against the current 15.5 per cent. Inoue emphasised the company’s dedication to ‘producing global standard goods in India’ and meeting local sourcing requirements as part of their expansion strategy.
With its growth not limited to the Northern and Western regions, the company is focusing on South India as it aims to ensure that the quality of service and product mix in each store aligns with customer expectations, Inoue explains.
In addition to its physical stores, Uniqlo is expanding its digital presence. Currently, 15 per cent of its sales come from the official online platform, Uniqlo.com, which reaches 17,000 pin codes across the country. The company intends to continue strengthening its online sales through its website and mobile app.
Uniqlo is the largest brand in the Fast Retailing Group, which is based in Tokyo and includes other brands like GU, Theory, PLST, Comptoir des Cotonniers, Princesse tam.tam, J Brand, and Helmut Lang. With India’s growing consumer base and its emphasis on quality and sustainability, Uniqlo is positioning itself as a key player in the Indian fashion market, setting ambitious goals for the future.
Swiftly ascending to becoming one of India’s top recycling companies, Badri Cotysn has, in just six years, achieved an impressive Annual Recurring Revenue (ARR) of Rs 500 crore, recycling an astounding six million PET bottles every day. At the heart of its operations is a state-of-the-art facility in Mandideep, Bhopal, where advanced technology converts waste into high-quality polyester fiber.
Established in 2018, by Sumit Gupta and Amit Gupta, Badri Cotysn aims to produce quality recycled materials while building a sustainable and scalable business model. The company aims to be one of India's top three plastic recyclers, supplying industries in textiles, automotive, and geo textiles.
Located in Madhya Pradesh's Raisen district, The Mandideep facility features an 800 kW rooftop solar installation, which powers the facility's operations, significantly reducing its carbon footprint. The plant transforms discarded PET bottles into a range of products, including Recycled Polyester Staple Fiber (r-PSF), recycled PP & HDPE granules, and PET flakes—sustainable alternatives to virgin materials. Badri’s efforts are bolstered by partnerships with major brands like Coca-Cola, ITC, and Pidilite, which utilie Badri's Extended Producer Responsibility (EPR) credits to offset their own plastic waste impact.
As demand for recycled materials rises, Badri Cotsyn has expanded internationally, with a growing presence in European and Middle Eastern markets. In the past year alone, exports have tripled. The company plans to further increase its capacity with a new Rs 150 crore facility in Bhopal, expected to triple revenues in the next three to four years. This new site will focus on meeting the surging demand for recycled plastics, especially for food-grade applications.
Through this integrated approach, Badri Cotsyn offers a compelling model of how tech-enabled solutions can drive change in recycling, presenting a blueprint for a more sustainable future in India and beyond.
Owner of the Gore-Tex® brand, W L Gore & Associates, is expanding its ‘Outerwear On Demand’ snowsports garment rental program to 15 additional locations in partnership with major players like Alterra Mountain Company, Powdr Corp, and Pacific Group Resorts, as well as select local retail shops. This expansion aims to make high-performance technical outerwear more accessible to skiers and snowboarders, building on the program’s success since its launch in the 2020/2021 winter season.
The program offers skiers and riders an opportunity to rent the latest premium Gore-Tex outerwear including jackets and pants designed for superior waterproof, windproof, and breathable performance, at an affordable price. The initiative is geared towards those seeking comfort, convenience, and high-quality technical gear without the need to purchase. All garments are inspected and professionally cleaned after each use to ensure top-notch quality for every customer.
The expansion is part of a broader strategy to make premium outerwear accessible to more skiers and riders. The goal of the ‘Outerwear On Demand’ program is to elevate the skiing and riding experience, says Chris Brennan, Program Lead. It gives resort visitors an opportunity to wear high-performance Gore-Tex outerwear and allows them enjoy the slopes in any weather, comfortably and confidently.
By providing high-quality, durable outerwear rentals, Gore-Tex also aims to encourage more people to participate in winter sports, allowing them to experience the mountains without the financial commitment of purchasing expensive gear. This model follows trends in the ski industry, emphasising convenience and quality, while encouraging more frequent participation and longer visits to resorts.
With the rental program’s sustained success, Gore-Tex plans to continue expanding its Outerwear On Demand offerings. As the demand for high-quality, convenient rental options grows, the brand remains committed to partnering with more resorts and retail locations, ensuring that skiers and riders across North America can hit the slopes comfortably, regardless of weather conditions.
Significantly boosting production to meet rising demand, Revalyu Resources plans to open its third PET polyester recycling plant in Nashik in Q3, FY25. A part of the company’s $100 million investment plan, the plant will add a capacity of 120 tons daily, allowing the Nashik site to recycle 35 million post-consumer bottles per day, with a total output of 280 tons daily.
Revalyu Resources recently commissioned its second PET polyester recycling plant at Nashik, India. The new facility recycles over 20 million used PET bottles daily, converting them into 160 tons of high-quality PET chips and PET polymer used in textiles, packaging, automotive accessories, and a variety of PET-based products. These recycled materials help customers achieve their sustainability goals across multiple sectors.
Revalyu uses advanced, patented glycolysis-based recycling technology with automated processes, making their operations scalable, profitable, and easily replicable. Their recycled PET production consumes 75 per cent less water and 91 per cent less energy compared to conventional oil-based PET manufacturing.
The company has a proven, scalable, and profitable technology that can transform used PET plastic back into virgin-grade quality PET polymer, notes Dr Vivek Tandon, Founder, Revalyu Group.
The new plant proves the commercial viability of chemical recycling at a global scale while maintaining a minimal environmental impact. The 100 per cent post-consumer recycled polymer manufactured by the plant can replace conventional PET in any application.
Looking ahead, Revalyu plans to establish a 240-ton-per-day PET recycling facility in the U.S. by 2027. Additionally, the company also aims to scale production to over 1,000 tons daily by 2030 through global partnerships.
Germany-headquartered Revalyu Group is owned by Heraeus, one of the top 10 family-owned companies in Germany, and continues to lead innovation in sustainable recycling technology.
From 63.3 million tons in 2022, global polyester production has increased by 15 per cent to over 73 million tons currently.
As per a report by a non-profit organisation, RMI Institute, this growth is largely being driven by the fashion, home furnishings, and furniture industries, especially fast fashion, which raises concerns about waste and carbon emissions. A single polyester t-shirt emits 20.6 kg of CO2 over its lifecycle, and with billions sold annually in the US, the environmental impact is substantial. Brands like Nike and Patagonia are responding by incorporating recycled polyester and other eco-friendly materials.
Polyester production starts with fossil fuel-based chemicals, such as naphtha and ethane, which are transformed into PET resin, the foundation for textiles, plastic bottles, and other products. PET's carbon footprint can be double that of other plastics due to its complex manufacturing process. Reducing emissions in polyester production is challenging because of high costs, slim profit margins, and the need for major capital investments. However, creating a specialised market for low-emissions polyester could make these investments worthwhile, similar to what's been done in the sustainable aviation fuel sector.
To cut emissions, PET suppliers can transition to renewable energy sources, while chemical producers can explore innovative methods like bio-based feedstocks, carbon capture, electrification, and recycling. On their part, retailers can lead by forming buyer alliances to set clear demand and price signals for low-emission products, following the model used in sustainable aviation. Meanwhile, feedstock suppliers and chemical manufacturers will need considerable funding to update production facilities, a process that can be supported through subsidies, tax incentives, and regulatory systems like the EU’s Emissions Trading System.
Creating a market for low-emissions polyester requires standardised certifications and aligned product standards. Consumer interest and the higher profit margins of sustainable fashion suggest that this approach is viable. Moving forward, the industry would need to balance voluntary initiatives with policy measures to hit emissions targets in the rapidly expanding polyester market.
