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www.apparelresources.com JULY 2016 StitchWorld 5

To read StitchWorld content online, visit our website www.apparelresources.com or call 91-11-47390000

StitchWorldTechnology and Management in Sewn Product Industry

VOL. XIV • ISSUE 5www.apparelresources.com

(L-R) Ruchika Dawar, Assistant Professor, NIFT Jodhpur; Prof. (Dr.) Raghuram Jayaraman, Director – NIFT Jodhpur; Dinesh Kumar Sharma, AGM – Operation, Shahi Exports, Faridabad; and Ankur Saxena, Assistant Professor, NIFT Jodhpur at the NIFT Jodhpur Convocation-cum-Graduation Programme

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Rahman Hasibur, MD, Solstice

Md. Ifthikar, Production Director, Sai-Tex

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Editor-in-Chief

DEEPAK MOHINDRA

Technical Editors

PAUL COLLYER (UK)

CLAUDIA OLLENHAUER-RIES (GERMANY)

Copy Editor

VEERESHWAR SOBTI

Asst. Copy Editor

SAHIL SEHGAL

Sr. Technical Correspondent

ANCHAL RAI

Design & Production

RAJ KUMAR CHAHAL

PEEUSH JAUHARI

SATYAPAL BISHT

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NewsTrack10 BANGLADESH: DBL GROUP MULLS

GARMENT FACTORY IN ETHIOPIA

12 INDIA: ATDC CERTIFIES MASTER TRAINERS IN COLLABORATION WITH AMHSSC

14 HONG KONG: AMF REECE LAUNCHES BUTTONHOLING MACHINE WITH ANGLE INDEXER

16 INDIA: APPAREL EXPORTERS WILL SOON GET RELIEF ON IMPORTED FABRICS: TEXTILES MINISTRY

18 INDIA: KITEX TO LAUNCH NEW INFANT WEAR BRAND IN US

TechTalk30 SCIENCE OF APPAREL

MANUFACTURING: DESIGN THINKING

CompanyReview34 SAI-TEX: PIONEERING THE VIETNAMESE

DENIM WAVE

TechReads40 TECH READS – II

HubReview20 ETHIOPIA & MYANMAR: THE NEXT

‘POWERHOUSE(S)’ OF SOURCING

TechByte8 WHY HAS SUSTAINABLE WASHING AND

FINISHING OF GARMENTS REMAINED OUT OF REACH FOR SMALL- AND MEDIUM-LEVEL MANUFACTURING COMPANIES?

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E D I T O R I A L

Read and comment on my blog at

http://stitchworldmagazine.blogspot.com

Deepak MohindraEditor-in-Chief

The month of June has been like a roller coaster ride with some good news punctuated in-between the events that are disturbing and reason for concern. But the best news first... Apparel Resources launched its flagship brand Apparel Online in Vietnam this month. It was a proud moment for the team and the warm response that the magazine received from the local industry, the textile and garment association and the Indian expat community in the country was an icing on the cake.

There are many Indian expatriates working in Vietnam garment industry, leading both buying offices and factories. The feedback I got from them only makes my resolve firmer to explore Vietnam and present it to the world as the next big sourcing hub of Asia.

The other news that makes me very happy is the appointment of Smriti Irani as the Union Textiles Minister of India. Coming very close on the heels of the ‘Special Package’ announced by the Union Cabinet for the apparel industry, I sincerely hope that the industry will finally get its due recognition through a combination of firebrand leadership and timely policy interventions including some relaxations in labour laws that have been a long standing demand from the industry... However, I do hope that she is not diverted to look after UP politics.

The announcement indicates that finally two things have been clearly understood by the Government – the enormous capability of this sector to generate employment, and the other is that the apparel export sector is not to be clubbed together with handloom.

But among these reasons to rejoice, the exit of Britain from the EU is a matter of deep concern for many exporters as the Pound fell 15 per cent in just a few days riding on negative business sentiments. Exporters whose payments are yet to come will be hit hard, unless they had anticipated and hedged the risk in advance or negotiated payments in Euro…, which I doubt many have done!

‘Brexit’ also means that the negotiations with the EU for FTA will have to start afresh... Many also believe that with the UK out of the EU, the FTA would not be as impactful. Of the US $ 16-17 billion apparel exports from India, Europe accounts for 45 per cent, within which the UK holds the largest share of 40 per cent. For made-ups, the share of Europe is 20-25 per cent, of which the UK forms 15-20 per cent.

The most worrying development however has been the eruption of terrorist activities in neighbouring Bangladesh. After the terror attack on a cafe in the elite locality of Gulshan in Dhaka that left 20 hostages dead, most of whom were foreigners working in the country, put us all under shock... But the firing and blast at Eid prayers have left the country as well as its well-wishers numb. This will certainly put fear into everyone and buyers may start working with factories closer home or at safer destinations.

Is Bangladesh going the Pakistan way...? Will an industry that is roaring to grow be ‘killed’ by anti-human forces...? I hope not. I have always propagated that the Indian sub-continent is a thriving hub for garment sourcing with each country having its own strength making for one comprehensive region..., but if the terror attacks in Bangladesh are not nipped out soon, we could be getting into an era of business boycotts that would impact the whole region.

8 StitchWorld JULY 2016 www.apparelresources.com

There is a lot of technological development happening in sustainable washing and finishing of garments. However, the technology has remained out of reach for small- and medium-level manufacturing companies. Why is that so? Is it the cost of the technology or the scale of the business? Are these technologies susceptible to breakdowns and are the breakdowns easily repairable? Does the performance of these technologies depend on quality of water (water hardness) being used?

For the technology providers: Are you planning to make these technologies in countries like India or Vietnam? Why do you think the adoption rate of these technologies is so low?

TECH BYTES

With the machinery used for sustainable washing and finishing of garment being sold at very high prices by the machine manufacturers, it is extremely difficult for small- and medium-level companies to adopt these technologies. Big manufacturing firms might be able to buy the machinery for sustainable washing and finishing if the margins received are good, but with the current low and the tough competition in the market, even the high-level companies are not ready to invest in these technologies. Currently most of the companies get their washing and finishing done by the contractors and contractors are unable to recover the cost of machinery.

This spectrum of machineries does not use water or steam. Instead it makes use of laser and ozone, which do not hamper the machinery and its components. Breakdowns, if any, can be easily managed.

SRIHARI BALAKRISHNAN President, K G Fabriks Ltd., Coimbatore, India

To be very honest, the cost of machinery used in sustainable washing and finishing is very high. With technologies that need a lot of capital investment, a manufacturer would need great orders and demands from buyers which is currently unavailable in the market. The small- and medium-level companies are having a hard time with the usual orders that they are receiving right now. Moreover, currently the market is dull and these manufacturers can’t really invest in new technologies. The tough competition in market does not allow even high-level companies to invest in these machineries and technologies.

There is no harm in offering sustainable washing to buyers but looking at the cost of production of garments, investing in the technology for a few good orders does not make sense. The companies investing in the technology are completely dependent upon the demands of the buyers. If the buyers ask for such products and are ready to pay for the technology, so that the manufacturer doesn’t face a loss afterwards, it will incentivise the manufacturer to invest in the technology regardless of the scale of the company.

The technology being so costly is not susceptible to breakdowns and if it does, the maintenance is cheap

and easily manageable. The only factor that affects the performance of these technologies is the human handling. If not done properly, the machine might face a breakdown. Currently, these technologies are used extensively in Europe and might grow popular in India, Bangladesh and Vietnam, depending upon the demands of the buyer.

KHALED OBAID ULLAH Managing Director, Eco Sourcing Ltd., Dhaka, Bangladesh

Alongside the obvious factor of high investments needed, the most important reason of non-acceptance of the technology is the absence of knowledge and skill about the machinery and technology amongst the workers. With machinery being expensive and imported, if handled without proper knowledge, the technology and machinery will face regular breakdowns. And since the machinery is not developed locally, it is difficult to obtain the damaged part repaired or replaced. Coming to the effect of water over the technology, it is not a great deal to be pondered upon. With the water treatment plants, PH controllers, etc., the quality of water required for the certain kind of wash can be easily altered.

RAJESH SACHDEVA Managing Director, Upper Class Fashions, NCR, India

The main reason for the sustainable washing and finishing of garments technologies not being taken up is the high cost of the machinery involved. Besides, currently, the products manufactured using sustainable washing and finishing technologies do not yet earn plush margins. With fierce competition in the market today, small- and medium-level companies do not have enough capital to invest in the technologies as the work. These technologies are at low risk of breakdown and are not easily repairable if the breakdown happens.

If the Government motivates the manufacturers, washers and dyeing units by giving subsidy or certain tax exemption or incentives in form similar to what has been done with solar energy, the sustainable washing will be more widely accepted.

HANUR KHAN Proprietor, Genesil Technologies, NCR, India

Tech Byte


In sustainable washing and finishing of garments, the cost of the technology available is not very high, and the machines are user-friendly. The finances involved in acquiring the machine is not the factor that is restricting the small-scale industries from setting up these machines, it is actually the cost of the chemicals to be used which have a high-profit margin, and which subsequently adds to the cost of handling the machine. For example, Clariant provides sustainable chemicals for washing of garments, but their market price is quite high, which is the reason that not all manufacturers can use it.

High-end machinery generally comes with a user manual indicating any services the machine needs on a daily weekly or a monthly basis. Even in cases where the machine breaks down, there are agencies and maintenance companies which are dedicated for such tasks.

The performance of these machines is absolutely dependent on the quality of the water used, the softer the water used, the better the machine performs both in terms of longevity and having lesser breakdowns. Scaling, also known as hard water stains, is a major concern for any machinery that uses water, especially for laundering, where chemicals are also involved.

NEERAJ BAJAJ Partner, Bajaj Dyechem, Hisar (Haryana), India

The technology for sustainable washing and finishing of garments is not costly, both in terms of investment and regular use, and it is actually in reach of all levels of manufacturing setups. There are many (small- and medium-scale) companies to which I have provided sustainable washing technologies, irrespective of their size. It depends on the perception of the owner and not the size of their setup, and whether they wish to incorporate sustainable technologies. Another reason which might hold relevance in this aspect is that the owners feel that they can still function without the addition of such technology, which

Tech Byte

Write your comments to us by 20th JULY 2016 at: [email protected] or post your views online through our website: www.apparelresources.com

PERC dry-cleaning is banned in many developed countries; however, export-driven industry still rely on PERC for dry-cleaning. Are you aware about other advanced dry-cleaning methods like CO2 dry-cleaning? Are you planning to change your norms for dry-cleaning medium in near future? Why do you think CO2 dry-cleaning is not popularly adopted in South Asian garment manufacturing industry, especially at the time when ozone wash is being accepted by many leading Asian manufacturers?

is sophisticated and not so easy to use in any way, as is their perspective.

SUNIL TANDON Proprietor, Excel Chemicals/Eureka Chem India, Delhi, India

The adoption rate of sustainable washing and finishing technology is low, especially for the small- and medium-level manufacturing companies, because the investment required is perceived to be hefty by these manufacturers. But the investment is one of the various factors that must be considered. Savings such as reduction in amount of resources, time, manpower, and cost of poor quality are the other important aspects in the situation. A completely sustainable laundry should be able to generate 100 per cent ROI in two years. As an increasing number of retailers move towards sustainability, I can foresee a huge boom in the market.

We do not see ourselves moving the production base closer to hubs like India and Vietnam for another five years at least. Once the demand in these regions surges, a relocation can be considered.

MANUJ KANCHAN GM (South Asia), Jeanologia, Valencia, Italy

TechByte StitchWorld AUGUST 2016 Question


News Track

Bangladesh: DBL Group mulls garment factory in Ethiopia

Encouraged by the duty benefits enjoyed by certain

African nations to the US markets, leading Bangladeshi garment manufacturer and exporter, DBL Group is planning to set up a US $ 100 million integrated textile and garment factory in the Tigray region of Ethiopia, claims media reports.

“The new factory will go into production by February next year. We expect to employ 3,500 workers. Of them, 150 will be employed as executives – all from Bangladesh,” reportedly informed a senior DBL official to a Bangladesh daily, adding, “We are going to Ethiopia as this African nation enjoys zero-duty benefits from the United States on exports. The benefits will continue for a long time as Ethiopia is a member of the Least Developed Countries (LDCs).”

For construction work of the project – a debt-funded venture of DBL (and not a joint venture) – the Bangladeshi conglomerate has reportedly obtained US $ 15 million in loans from the Swedish Government’s development fund – Swedfund at an interest rate of 6 per cent and another US $ 55 million from the Ethiopian Development Bank at nearly 7 per cent.

“We aim to export to the US, European, African and Middle East countries from Ethiopia,” the DBL official maintained to the daily newspaper, adding, “DBL is a Platinum-rated apparel supplier to Swedish retail giant H&M and our main target is to supply to them.”

It may be mentioned here that Bangladesh, despite being an LDC, does not enjoy duty benefit from the US.

Sri Lanka: Brandix honours its top supply chain partners

Sri Lanka-based Brandix Group announced its best year till date to be FY 2015-16, with maximum

contribution from its supply chain partners, and hence the apparel export major organized a ‘Vendor Summit’ recently to honour its top vendors.

Brandix reduced its supply chain partners from 530 vendor partners in 2011 to 350 vendor partners today, out of which 100 were called off this year. The 350 vendors would be further reduced and will be brought down to 150 by 2020. Presenting these key suppliers with an insight into the dynamics that propels the industry and a glimpse into the future, Brandix forecasts it would double sales in the next five years, through focus on speed, quality, innovation and price. “Brandix recognizes both the elements, emotional and rational, in its effort to produce phenomenal products better, faster and cheaper,” said Priyan Fernando, Chairman, Brandix Group.

The supply chain partners were awarded in two groups: one for ‘speed partners’ and one for ‘top vendors’ in 12 categories, covering suppliers of bra cups & padding; packaging; thread; packing trims; sewing trims; labels, tags & stickers; lace; embellishments; elastics; knitted synthetic fabric; woven fabric; and knitted woven fabric. A total of 33 awards were presented, including 19 Speed Partner awards.

Brandix has set a benchmark in sustainability and is an international award winner of eco-friendly manufacturing for its commitment to best environmental practices. The group employs more than 48,000 people at its manufacturing facilities in Sri Lanka, at the Brandix India Apparel City in Andhra Pradesh, and in Bangladesh as well.

Global Apparel Imports by the US: Jan.-Apr. 2016

TRADE STATISTICS

Global Apparel imports by US (Jan.-Apr. 2016)

Global Apparel imports by EU (Jan.-Feb. 2016)

UVR Decreased

2.56%Volumes Increased

1.44%

Values Decreased

0.3%

UVR Increased1.32%

Canada’s Global Apparel Imports (Jan.-Apr. 2016)

Global Apparel Imports by the EU: Jan.-Feb. 2016

Volumes Increased

0.07%

Values Decreased

2.73%

DBL Group is planning to set up a US $ 100 million integrated textiles and garment factory in Tigray, Ethiopia

Values Increased

2.78%

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News Track

Vietnam: Gerber Technology hosts conferences on AccuMark 10 and 10.1

Gerber Technology, the US-based pioneer of

integrated software and automated solutions for the apparel and industrial markets, recently hosted ‘Gerber New Product & Integrated Solutions’ Conferences in Vietnam.

The conferences took place at Hanoi and Ho Chi Minh City. Gerber experts and professionals presented new functions of Gerber AccuMark 10 and 10.1, which offer enhanced pattern design and development, marking, nesting, and spread and cut planning; new AccuPlan cutting and plan software; and the technology provider’s integrated solutions for the apparel industry to enable them meet the challenges of mass customization, or made-to-measure environments and optimizing inventory levels.

Gerber, which develops and manufactures its products from various locations in the United States of America and Canada, and has additional manufacturing capabilities in China, has been laying stress on the emerging economies like Vietnam, where it is aiming to provide quality services and leveraging its global resource to solve local challenges.

India: ATDC certifies Master Trainers in collaboration with AMHSSC

Vietnam: VTG 2016 begins this November

techniques while assuring their basic domain knowledge.

Addressing on the occasion, Dr. Darlie Koshy DG & CEO, ATDC & IAM said, “There is a vital requirement of Master Trainers in ‘Teaching Pedagogy’ while also further developing their Core Competencies in Vocational Training in Apparel. This initiative is a very significant one as it will certainly go a long way in promoting high quality Trainers to help in improving the quality of training, while bringing about overall systemic change.”

textile and garment industry of the country, by providing a platform to the Vietnamese T&C manufacturers to show their innovations and capabilities.

This year again, the fair will focus on segments like spinning machinery & accessories, looms, yarn processing machinery & accessories, weaving machinery & accessories, bleaching & washing machines, chemicals and dyes, embroidery equipment, knitting machinery, testing equipment, textile screen

Apparel Training and Design Centre (ATDC), in

collaboration with AMHSSC (Apparel Made-ups and Home Furnishing Sector Skill Council), has inaugurated the first Recognition Prior Learning (RPL) programme to upskill the workforce in Garment, Made-ups & Home furnishing Industry. The main goal of the Orientation, Assessment & Certification Programme was to upgrade the knowledge base and skill levels of Master Trainers; develop them in basic pedagogy; and teaching

The 16th edition of Vietnam International

Textile and Garment Industry Exhibition (VTG), organised by Ministry of Industry & Trade – Vietnam National Trade Fair & Advertising Joint-stock Company, Yorkers Trade & Marketing Service Co. Ltd. and Chan Chao International Co. Ltd., is all set to raise curtains on November 23 at Saigon Exhibition & Convention Centre – SECC, Ho Chi Minh City, Vietnam.

VTG has become one of the most influential and comprehensive exhibitions for

The nominated masters were assessed on the basis of their domain knowledge (Sewing Machine Operator & Hand Embroidery), time management, motivational behaviour, discipline at workplace, language and literacy and supportive behaviour for leaders. The Masters, after certification, will conduct training programmes on their respective sectors and act as mentors for the trainers in their particular region for upgrading and enhancing their knowledge base and skill level.

printing machinery, etc. Such wide ranging exhibits show how much Vietnamese textile and garment sector has to offer to the world.

Over the course of time, the four-day show has seen a gradual increase in footfall each year as interest in textile, garment, and accessories firms has also been on the rise in Vietnam. VTG 2016 will continue with its aim to attract trade visitors, buyers, and executives from T&C companies and regional research institutions worldwide.

Over the course of time, VTG has seen a gradual increase in footfall

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News Track

India: PK Khanna, Founder & Chairman of IIGM passes away

A pioneer in the field of introduction of modern machinery to the Indian apparel manufacturing industry, PK Khanna, Founder & Chairman, IIGM passed away at the age of 88 on 3 July 2016. He founded IIGM back in 1978 and shaped the company to become a comprehensive technology and service provider for apparel, home textiles and footwear sectors.

Driven by an impeccable business sense and instinct, Khanna introduced the most relevant technologies to the Indian Apparel Manufacturing industry right in time, revolutionizing the manufacturers’ approach to apparel manufacturing technology on the shopfloor. Going above and beyond the definition of being a technology provider, Khanna ensured IIGM offered several value-added services that directly addressed consumers’ needs, while still keeping the cost reasonable.

Having seen the industry’s transformation across 4 decades, the octogenarian was a regular sight at industry fairs and served as a constant source of knowledge to the young brigade.

Switzerland: Benninger develops washing technology for elastane-based fabrics

Hong Kong: AMF Reece launches buttonholing machine with angle indexer

the washing efficiency up to 40 per cent in comparison to conventional net and screen drum systems; 1consumes less water and steam as it has counter-flow washing technology and faces minimum fabric elongations due to low distance between

easy repeatability of the operation; also, due to lack of contact brushes, this motor is more reliable.

The S-4001 ISBH further saves time as it does not require the user to disconnect the indexer as the machine’s sewing mechanisms are easily

Benninger, the Swiss company that develops

and manufactures textile machinery and has been the leading partner of the textile industry across the globe since more than 150 years, has developed a machine to assist in crease-free processing of elastane-based fabrics.

The machine is based on the concept of drum washing, sold under the brand name Trikoflex, and is developed keeping in mind the increase in use of elastane in fabrics used today. The washing technology involves a high mechanical washing effect due to front and back washing technology, which facilitates quick and efficient removal of impurities, thus increasing

S-4001 ISBH is the newest buttonholing machine

on the industrial block, developed by Hong Kong-based AMF Reece. S-4001 boasts the ability of sewing buttonholes slanted up to a 30° angle, with an electronic angle indexer. This will reduce the downtime caused by the need of mechanical machine adjustment, thereby making the operator’s work more rapid, easy and accurate.

The machine is extremely flexible and all indexing parameters are fully controlled from the touchscreen attached to the workstation. It has a standard thread catcher and X-Y indexer drive with a step-motor which makes it precise and credits

S-4001 ISBH has an X-Y indexer drive with a step motor which ensures precision and repeatability

accessible with a simple sewing head tilt.

AMF Reece is a world-wide manufacturer of specialized industrial sewing machines, including eyelet buttonhole machines, chain stitch machines, decorative hand stitching machines, button stitching and wrapping machines, auto jig machines and trouser sewing units, including pocket welting machines. They are also credited to have developed the first automatic eyelet buttonhole machine in the world.

Besides this, AMF Reece has a patented floating needle technology to imitate the real hand stitching.

immerse roller and the drum.

Keeping in mind the need of the textile processing process of fabrics involving elastane, the machine takes care of maintaining the stretch, elasticity and dimensional stability of the fabric by incorporating the relaxation process without curling/folding of selvedge, thereby achieving even shrinkage across width while washing.

The open-width processing with low and controlled tension for elastane blended fabrics is of utmost importance to retain the inherent properties of said fabrics which otherwise may permanently reduce the stretch and elasticity/recovery of the fabric.

Trikoflex’s washing technology takes care of maintaining the stretch, elasticity and dimensional stability of the fabric by incorporating the relaxation process without curling/folding of selvedges, thereby achieving even shrinkage across width while washing.

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India: Apparel exporters will soon get relief on imported fabrics: Textiles Ministry

Indian apparel exporters may soon get some relief

on the duties paid by them on imported fabrics. “Yes it is a long pending demand; few measures are now under consideration, so industry may soon get some good news in this regard,” replied Santosh Kumar Gangwar, Minister of State (I/C) Ministry of Textiles and Pushpa Subrahmanyam, Additional Secretary, Ministry of Textiles to a question raised by StitchWorld. They were addressing a press conference in New Delhi, organized on the completion of two years of NDA Government. The Minister added that the Government has given many incentives as well to apparel exporters over the course of time.

Also stressing on the recent reports published by international NGOs, Gangwar assured that the Ministry will see the reports of those damaging the image of Indian apparel exporters at global level. “As of now matter was not in our notice but we will see the issue now,” he said. Besides this, the Minister urged the apparel industry to set up factories in the North East region of the

country as now all the eight states in North East have garment and apparel making centres, so trained workforce is available there.

Announcing achievements of the Ministry and Government as a whole in last two years, Gangwar asserted that MoT has taken care of every sector; be it handloom, textile mills, training or education in textile and apparel industry… “It is first time that we have not received any complaint about NIFT admission,” adding, “Our textile industry now contributes 15 per cent to India’s exports. More than US $ 900 million has already been spent by the MoT on various schemes for promotion and development of the textiles sector. Approximately five lakh additional jobs have been created in the past two years in the sector.” Additionally, the Minister mentioned that one of the biggest achievements of the Ministry is of sanctioning 24 new Textile Parks under the Scheme for Integrated Textile Parks with a potential investment of US $ 661 million (Rs. 4,500 crore) and employment for 66,000 people.

USA: EFI acquires Optitex

Electronics For Imaging Inc., a global technology company, has acquired Optitex Ltd. – a fast-

growing global leader in integrated 3D design software that enables the textile industry’s digital transformation and accelerates the adoption of fast fashion.

Expressing his delight on the acquisition, Gabriel Matsliach, Senior Vice President and General Manager of EFI Productivity Software averred, “We are thrilled to add the Optitex team and its fast-growing base of industry-leading customers to the EFI family, who combined with Optitex’s technology, will expand our textile ecosystem and help our customers set new standards for time-to-market, on-demand manufacturing, cost efficiency and automation in the textile industry.”

Optitex’s 3D technology and best practices empower the textile industry’s leading retailers, brands and manufacturers to transform their methods of doing business, making it time- and cost-efficient. Asaf Landau, CEO of Optitex, proclaims his excitement on the acquisition and is positive that the global presence of EFI coupled with their growing portfolio of innovative textile industry-specific products will help the leading customers of the company in fashion and technical textiles industries.

The acquisition, estimated at US $ 52.8 million, shifts roughly 100 members of the Optitex team to EFI, where they will work under EFI Optitex’s General Manager Asaf Landau for the advancement of the textile sector and further setting new standards for on-time, on-demand manufacturing and automation in the textile sector.

Santosh Kumar Gangwar, Minister of State (I/C) for Ministry of Textiles, addressing a press conference in New Delhi, organized on the completion of two years of NDA Government

The acquisition, estimated at US $ 52.8 million, shifts roughly 100 members of the Optitex team to EFI, where they will work under EFI Optitex’s General Manager Asaf Landau

News Track

17 StitchWorld


News Track

India: Kitex to launch new infant wear brand in US

India: NIFT should focus on Industrial Engineering, says Dinesh Kumar Sharma, AGM – Operation, Shahi Exports

world by increasing both online and offline presence, along with their technological capabilities. As an indication of the renewed consumer sentiment in the US, there has been an 8 per cent increase in the specialty infant apparel segment in the past year.

Kitex has been a major supplier to global brands such as Carters, Gerber, Mothercare, Jockey & Toys R Us, and to further increase its footprint, the manufacturer is making

While speaking at the event, Dinesh highlighted what apparel industry really expects from NIFT students… “In apparel industry there is lot of scope for young generation and they should not think otherwise. There are many examples where a minor change in methods gave bigger results,” he said and also shared one example, “Shahi Exports had a problem in thread joint and thread breakage in denim styles and we did Bobbin Project with two NIFT students on the

Kitex Garment Ltd., the Kerala (India)-based

infant wear and textile manufacturer is geared up to launch its brand ‘Little Star’ in the US market, with an aim to sell cotton infant wear and simultaneously expand its reach in the US by forward integration.

Sabu M Jacob, Chairman and Managing Director of Kitex states that the objective is to become the No. 1 infant apparel manufacturer in the

NIFT Jodhpur (India) recently organized a

Convocation-cum-Graduation Programme at which 30 students from B.F. Tech (2012-16 session) and 15 students from MFM (2014-16 session) were awarded with degrees. Dinesh Kumar Sharma, AGM – Operation, Shahi Exports, Faridabad was the Chief Guest at the event, which was hosted by Prof. Dr. Raghuram Jayaraman, Director – NIFT, Jodhpur.

Rohit Kumar Singh, Aashna Jamal, Sanya Bogra, Vidhi Kamra (MFM), Saumya Shilpi, Shyamlee Shreya, Sunanda Ghorai, Ankur Kumar, Adhishesh and Shyamlee Shryea (B.F. Tech) were awarded for best projects. Ridhi Malviya was selected as Student of the Year, while NIFT Extraordinary Service Award was won by Padmini Shekhwat. NIFT Meritorious Award in MFM was won by Vishi Kamra and Tanupriya, NIFT Meritorious Award in B.F. Tech was given to Shaymlee Shreya and Riddhi Malviya.

efforts to launch the brand Little Star by October this year. The company has also entered into a license agreement with Lamaze International, USA, for manufacturing and suppling of infant garments in the US and Canada markets.

Established in 1992, the company exports its products to the US and European markets, with per day textile capacity of 50 tonnes and 2.70 units of infant wear.

same, and the company got fantastic results.” Sharma also emphasized that students should understand and apply the concept of Industrial Engineering (IE) for enhanced productivity as without productivity we can’t survive in the market. “IE should be covered as a ‘core’ subject in the courses of NIFT,” he concluded.

NIFT (National Institute of Fashion Technology) has 15 centres across India and is the most famous fashion institute of the country under Ministry of Textiles002E

India: Abof to provide on-spot alterations

Abof, owned by Aditya Birla

Group, is planning to launch a value adding service – starting with Bangalore and parts of Hyderabad – to offer on-spot alterations to its customers by partnering with tailoring start-ups.

The company deduced that almost 1/5th of the returns on their products are due to fitting and size issues, urging the management to come up with additional policies and services as a back-up solution. By this initiative, the company aims to reduce returns and increase customer satisfaction for alteration.

The decision of providing on-spot alterations has been commissioned after a 2-month pilot programme in Bangalore and will then be expanded to Pune, Mumbai and Delhi-NCR regions. The company already provides other value adding services such as online 3-D trial rooms and on-spot exchanges in case of any size related issue.

In Bangalore, Abof is partnering with YourTailor.in, an online tailoring service in the city and likewise will collaborate with similar start-ups in other cities to power it through a vendor-partner relationship.

(L-R) Ruchika Dawar, Assistant Professor, NIFT Jodhpur; Prof. (Dr.) Raghuram Jayaraman, Director – NIFT Jodhpur; Dinesh Kumar Sharma, AGM – Operation, Shahi Exports, Faridabad; and Ankur Saxena, Assistant Professor, NIFT Jodhpur at the NIFT Jodhpur Convocation-cum-Graduation Programme


News Track

France: YuniquePLM propels creativity & efficiency for retail giant Carrefour

Vietnam: Better Work Vietnam launches ‘Labour Law App’

palettes, images and, more directly in their design program of choice, including Adobe® Illustrator®. Updates can be seen immediately within YuniquePLM. This integration reduces cycle time and fosters the adoption of the full development chain, while streamlining the entire process of delivering new products to market.”

According to a Carrefour representative, they look forward to increase in creativity, quality and

other interesting features (in English and Vietnamese), both for garment factory personnel and industry partners.

Inclusive of a “Frequently Asked Questions” section featuring the most commonly asked legal questions by factories, the app also contains an interactive quiz to test users’ knowledge of the law related to the industry.

Expected to serve as a valuable reference for the factory managers, HR offices and compliance staff, as well as buyers and vendors with

Carrefour, the second largest retail chain in

the world, has selected YuniquePLM to manage its large amounts of data and to unify its design and product development processes. Carrefour is a French multi-national retailer that operates more than 12,500 retail operations to offer a wide range of products, from apparel goods to kitchen appliances and fresh produce in over 35 countries in Asia, Africa, Europe and the Middle East.

The retailer looked to YuniquePLM for its strong integration with design tools and its ability to deeply integrate with their assortment tools. Commenting on the collaboration, Bill Brewster, Vice President and General Manager of Enterprise SW Solutions said, “With YuniquePLM’s Design Suite, Carrefour’s technical designers will be able to create, access and modify styles, colour

Better Work Vietnam, part of the Better Work

global programme which is a unique partnership between the International Labor Organization (ILO) and the International Finance Corporation (IFC), has launched a mobile application with the purpose of improving labour standards and enterprise performance in the apparel industry.

The app offers the latest content from the fourth edition of Better Work’s Labour Law Guide and a range of

productivity with YuniquePLM as they will communicate product specifications, technical drawings, tech packs and issue sample requests. YuniquePLM will act as a fulcrum for Tex’s global supply chain.

Gerber Technology has been selected for their in-depth knowledge of the French business landscape, combined with their expertise in integrating the tools used by our creative teams, the representative added.

sourcing interests, the Labour Code App will assist in day-to-day labour related issues in the factories.

With its user-friendly interface and simple navigation, the app allows the user to search key information and skip between chapters of the Labour Code, while bookmarking and sharing articles of interest. The app will also inform the user of any training sessions that have been scheduled and are upcoming with general updates from the Better Work Organization.

Italy: Epson to acquire textile printer manufacturer

Epson Italia SpA is reportedly going

to completely acquire Fratelli Robustelli, one of the leading manufacturers of textile printers.

The reports claim that while the entry of Robustelli into the Epson Group will allow it to expand its reach to more customers around the globe, this strategic move will also back Epson to take advantage of Robustelli’s capability in accelerating the development of digital inkjet textile printers with a wider line-up of products, through joint R&D.

Sunao Murata, COO – Professional Printing Operations Division, Epson averred, “The market for high-quality digital textile printing is expanding, and I believe that formalizing our collaboration with Robustelli in this way puts us in a great place to meet the needs of the growing numbers of customers who are seeking to leverage the advantages of advanced digital solutions that will help drive their businesses forward.”

Additionally, Epson will use its already established sales and service network to make Monna Lisa – registered trademark of Robustelli.

Carrefour looked to YuniquePLM for its strong integration with design tools and its ability to deeply integrate with their assortment tools


Ethiopia & Myanmar

The sourcing options for apparel retailers have never been so diverse. Even as the fraternity makes peace with China’s mounting wages, the pace at which Bangladesh has developed and Vietnam is being developed is enthralling. The wage bomb is ticking anyway at these locations as well, and since the economy in both the countries is improving, the opportunities in other sectors will soon start weaning away the workforce from apparel factories to other emerging sectors. Simultaneously, Ethiopia and Myanmar have emerged as the next two hot and actively pursued manufacturing destinations.

Ethiopia is said to be a place where one can go for fibre to factory, and cheap plentiful labour at US $ 52 a month, inexpensive power, and a Free Trade Agreement with US augment the country’s business case. Top it up with vast land ripe for cultivation of cotton which will serve as a source of raw material. The biggest challenges that remain however are the production inefficiencies and lack of a competent local sourcing network rather than the widespread perception of being a corrupt nation and not being as dexterous as Asians.

Though the export is a mere US $ 60 million at present, the companies that have

established their presence in Ethiopia are building capacities which will translate to exponential growth. Despite the fact that there is no comparison between Ethiopia and Myanmar, Ethiopia is considered the first choice destination to set up a factory.

Myanmar, on the other hand, starts with a minimum wage which is lower than that of Bangladesh and thus wins over the buyers. Producing high-tech sportswear, shirts, and formal suits, Myanmar exports 75 per cent of its produce mainly to Japan and Korea as the US and EU withdrew the trade benefits when Myanmar was gripped by military regime. Thus, a country that has worked slowly and steadily to build a sizable US $ 1.4 billion export turnover for the last year relying significantly on these markets, is potentially an apparel manufacturing powerhouse. If the ongoing talks with the EU and the US manifest in Myanmar’s favour, the status quo will be altered significantly for even higher export figures. The challenge that must not be ignored is the lacklustre banking infrastructure which restricts the loan sanctioing authorities of foreign banks in the country.

Hub Review

The next ‘powerhouse(s)’ of sourcing

Even as existing hubs become expensive, the sourcing options for buyers have never been so diverse


In 2014 and 2015, the early birds of Foreign Direct Investment and garment sourcing in Ethiopia were

joined by a group of foreign investors (mainly from Turkey, India and China) and of Western buyers, which has upscaled the pace of developments, prompting the Government and the textile and garment sector in Ethiopia to set very ambitious targets to continue expanding rapidly.

In 2014-15, Ethiopian exports of yarns, grey fabric, garments and traditional handloom products together totalled a modest export amount of just over US $ 65 million. The target for 2020 is to export US $ 1 billion of textiles and garments. The sector, which now represents 6 per cent of the country’s total export value, wants to achieve a share of 22 per cent in 2020.

The Ethiopian Textile Industry Development Institute (ETIDI) was embarrassed when it had to announce that textile exports for the first six months of Ethiopian fiscal year 2015-16 were lagging behind the planned target. The target was to obtain US $ 60 million exports, while only US $ 41.1 million was achieved, meeting less than 70 per cent of the plan.

However, optimism continues to reign since companies such as H&M, Tesco, Gap, Belk, and Walmart, among others, are now sourcing textile products from Ethiopia. Europe is Ethiopia’s main export market for garments (with around 60 per cent of the total export). Half of Ethiopian

textile and apparel companies are SMEs of 500-1,000 workers who are able to handle small-run orders for European mid-segmented fashion retailers. Sweden’s H&M was a sourcing pioneer in Ethiopia.

Early birdsThe vertically integrated Turkish textile companies Ayka Addis and Saygin Dima, both of which entered Ethiopia in 2008, are the two key FDI pioneers in the sector.

Ayka Addis, currently the biggest textile group in Ethiopia, is eagerly working on a plan to relocate some 20 Turkish textile and garment companies to Ethiopia. Saygin Dima seems bullish about its future in Ethiopia. The management thinks that within two years a turnover of US $ 150 million per annum is within reach. Saygin Dima wants to extend its activities towards garment manufacturing which will increase current employment of 1,200 people to around 3,000 people.

Clothing retailers and brands from Europe and the US moved in slowly and cautiously. H&M started test runs in three Ethiopian factories in 2012, and then relied partially on the Swedish taxpayers to upgrade its Ethiopian suppliers via a partnership with Swedfund which reportedly injected US $ 8.6 million in 'the development of a responsible textile industry in Ethiopia'. The American clothing group Phillips-Van Heusen (PVH), which owns brands such as Calvin Klein and Tommy Hilfiger, strategically helped in building an East African supply chain by bringing in some experienced Asian investors in Kenya and Ethiopia.

The place to beIn spite of some striking flaws in Ethiopia’s politics, economy and infrastructure, as far as the production of garments for the Western markets is concerned, there’s a feeling that the country has a great future. Many sourcing specialists who have

Ethiopia: A Magnet for Textile Investment and Garment Sourcing

The transformation of a small, obsolete and uncompetitive garment industry into a strong export industry may seem a madman’s dream to most people, but not to sector observers who in the past witnessed the steep rise of the garment industry in countries like Bangladesh and Cambodia. Until recently, the Ethiopian Government and a couple of pioneering Turkish textile companies stood nearly alone predicting that Ethiopia would become the next big garment sourcing hub. However, 2015 was the year of Ethiopia’s take-off.

AREA-WISE DISTRIBUTION OF INTERNATIONAL APPAREL MANUFACTURERS IN ETHIOPIA

Company Name Location Country (from)

PVH Corp. Hawassa USA

Raymond Group Hawassa India

Hirdaramani Group Hawassa Sri Lanka

Arvind Limited Hawassa India

DBL Group Tigray Bangladesh

Jiangsu Sunshine Adama China

Kanoria Africa Textiles

Bishoftu (Debre Zeit)

India

Shaoxing Mina Textile

Sebeta, Oromia China

Calzedonia Tigray Italy

Velocity Apparel Plc Tigray UAE

Ayka Addis Textile and Investment Group

Bole Kefle Ketema Kebele

Turkey

C&H Garments Bole Lemi Industrial Zone

China

Korea Zinc Bole Lemi Industrial Zone

Korea

Shints ETP Garment Plc

Bole Lemi Industrial Zone

N/A

Vanity Fair Hawassa N/A

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Jozef De Coster, an analyst from Belgium, writes…


explored the global opportunities agree that today Ethiopia is the place to be. The country is currently the No. 1 sourcing location, according to the apparel sourcing company Duty Free Sourcing Inc. Also the Indian entrepreneur Sidarth Sinha, the Founder and Owner of Vogue and Velocity Group, who is in process to create a ‘garment township’ in Ethiopia, believes that no other country can presently beat Ethiopia.

The principal arguments to move into Ethiopia are well known: the abundant availability (at least theoretically) of cotton and hydro-energy, the

free entrance of Ethiopian textile products to the US-market under AGOA and to the EU-market under the Everything But Arms system, the strong engagement of the Ethiopian Government as formulated in the Second Growth and Transformation Plan (2015-16 to 2019-20) and demonstrated by the establishment of the Ethiopian Textile Industry Development Institute (ETIDI) and the industrial area Bole Lemi, both in Addis Ababa, and of course the very competitive labour cost.

The low Ethiopian labour cost (average monthly wages for operators

reportedly vary from US $ 45 to 60/month) are, however, significantly offset by low labour productivity and high personnel rotation. The extension of AGOA for 10 years, in June 2015, was of course of crucial importance as well for foreign textile and garment manufacturing groups as for American buyers to bet on Ethiopia for the long-term.

Ethiopia is one of the few countries which is utilizing the duty-free and quota-free export benefits under AGOA to the fullest, and where 95 per cent of the garment imports are open to the ‘third country’ fabric

FACTORS WORKING IN FAVOUR OF ETHIOPIA

Cheap Labour & Educated Workforce: Abundant availability of labour at US $ 45 per month for a skilled labour as well as significant number of educated youth for mid-management positions, which presents an ideal opportunity for labour-intensive garment manufacturing.

Bulk interest rate: The minimum capital required for a foreign investment is US $ 200,000 per project; the same is US $ 150,000 per project if the project is in partnership with domestic investor. Up to 70 per cent of the total project cost may be funded by banks @ 8.5 per cent interest rate and balance is expected to be invested by the investor.

Customs Benefits:

100 per cent exemption from the payment of customs duties and other taxes levied on imports of all capital goods.

Exemption from the payment of customs duties on import of spare parts worth up to 15 per cent of the total value of the imported investment capital goods, provided that the goods are also exempted from the custom duty.

Investor granted with a customs duty exemption allowed

importing spare parts duty-free for five years from the date of commissioning of a project.

Investor can also buy capital goods or construction materials tax free from local manufacturing industries.

Investment in capital goods imported without the payment of custom duties and other taxes can be transferred to another investor enjoying similar privileges.

Income Tax Exemptions:

All investments in textiles and textile products sector are exempted from income tax for a period of 6 years depending on the geographical region of the setup.

Investment in designated regions attracts special exemption of 30 per cent in income tax for three consecutive years even after the expiry of the income tax exemption.

Income tax exemption of 50 per cent is also given in case of factory expansion in volume or adding new product or introducing a new service provided that it is 100 per cent of an existing enterprise.

Investor, who exports 60 per cent of his products, or services,

or supplies to an exporter, is exempted from income tax for additional 2 years.

Export Incentives:

No export tax is levied on textile and garment export products of Ethiopia.

To safeguard domestic textiles industry, Government has imposed 35 per cent duties on imported fabric used for domestic consumption.

Duty drawback schemes offer 100 per cent exemption (drawn back at the time of exports) from the payment of customs duties and other taxes levied on imported and locally purchased raw materials used in the production of export goods.

Provisions for Bonded Warehouses whereby exporters are licensed to operate such warehouses in importing of raw materials duty-free.

Exporters who don’t enjoy facility of bonded warehouse are given vouchers with monetary values. Such vouchers can be used in lieu of duties and taxes payable on imported raw materials.

Hub Review


BRIEF CASE: ETHIOPIA

Hub Review

Addis Ababa (16) Bishoftu (1)

Oromia (1)

Ethiopia

Weaknesses Being landlocked, the country is

dependent on its neighbouring country Djibouti for its sea imports and exports

Missing raw material suppliersLack of technical knowhow might limit the

expansions and productivity

StrengthsAbundant availability (at least

theoretically) of cotton and hydro-energyFree entrance of Ethiopian textile

products to the US market under AGOA and to the EU market under the Everything But Arms System

Competitive labour costEfforts being made by regional

Governments to expedite foreign investments

Areas with major presence of apparel manufacturers (figures in brackets indicate the number of factories in that region)Source: Data extracted from Ethiopian Textile and Garment Manufacturers Association


rule of origin, which allows garment manufacturers to utilize raw materials from any origin for export purpose. In addition to this, preferential tariff rates have provided Ethiopia the freedom to export to the Common Market for Eastern and Southern Africa (COMESA) agreement, indicating that majority of ‘Made in Ethiopia’ products are eligible to enter into these markets which are quota- and duty-free.

Besides, availability of land on a leasehold basis of up to 99 years depending on the geographical region, type of investment and class of land, is also aiding the country’s growth in the apparel sector. In order to expedite foreign investments, regional Governments are putting

efforts and are able to allocate land to investors within 60 days of receiving their applications.

Mostly Asian investments In October 2015, the Indorama Group, the world's largest integrated manufacturer of polyester, was said to be discussing with the Ethiopian Government the setting up of a polyester plant in the country. This rumour has not yet been confirmed. In March 2015, the Indian denim giant Arvind started manufacturing denim bottoms, 12,000 pcs/day in the textile industrial zone of Bole Lemi (near the airport of Addis Ababa). Exports

were initially destined to the US, but at the end of 2015 negotiations were underway with potential European customers like H&M and Benetton. Besides, Arvind was said to be working on an integrated supply chain in Ethiopia, starting from cotton cultivation to spinning and weaving.

However, beating Arvind to the pole, Kanoria Africa Textiles, a subsidiary of the Indian group Kanoria Chemicals & Industries, on 24 October 2015 inaugurated a brand new denim fabric factory – the first in Ethiopia – with an annual capacity of 12 million metres in Bishoftu, 37 kms from Addis. The factory, started with less than 500 workers, has plans to extend activities to jeans manufacturing.

Kanoria will ultimately employ some 2,000 people in Ethiopia. According to Ethiopian media, India’s Raymond Ltd., the world’s largest integrated manufacturer of worsted fabric, has concluded an agreement with the Ethiopian Investment Commission to invest US $ 100 million in Ethiopia. The East African country hopes that Raymond’s engagement in Ethiopia will attract other investors.

The vertically integrated Taiwanese group New Wide Garments, which is already employing more than 1,000 people in a knitwear factory in Addis, plans to ultimately employ 5,000 people in three factories in Ethiopia. The Dubai-based Atraco Group started

manufacturing woven and knitted clothing in the Bole Lemi Industrial Park in Addis in October 2014. In the course of 2016, employment is planned to increase from 400 to more than 2,500 workers. Also Shin Textile Solutions of South Korea moved into the factory park at Bole Lemi in October 2014, with the intention to gradually employ 3,000 people.

Foundation Garment Pvt. Ltd. (Jinadasa Group), from Sri Lanka, is currently investing in Kenya where it will reportedly put 6,600 workers on the payroll (3,600 in Nairobi and 3,000 in Mombasa). However, it also has firm intention to invest in Ethiopia, where a factory employing 3,000 workers is scheduled to start in January 2018. The Ethiopian factory should produce 1.75 million pieces of clothing per month, for companies like H&M, PVH and Victoria’s Secret. The Turkish garment manufacturer Ayka has also set up a branch in Ethiopia, in which it has invested US $ 160 million. It employs around 7,000 people and plans to scale up to 10,000.

Several important investments are taking place in Mekele, in the north of Ethiopia. This is the case for investments by DBL and Velocity, among others. DBL Group, from Bangladesh, a vertically integrated knit garments manufacturer and exporter, is investing some US $ 100 million in a factory (garments, knitting, dyeing) in Mekele. The factory should be operational in the second half of 2016. Initial employment is estimated at 5,000-6,000 workers. Among DBL’s customers are H&M, Esprit, Puma, and Walmart.

The most ambitious investment project in Mekele is that of the Indian entrepreneur Sidarth Singa. His company Velocity intends to keep its existing five factories in Egypt at work, with around 4,000 employees, but it will expand forcefully in Ethiopia. A new garment factory in Mekele with 3,000 workers will mainly manufacture knits and denim articles. Velocity plans to ultimately employ some 10,000 people in Ethiopia. Customers of Velocity are brands like Levi's, Vanity Fair, Target, Zara, and H&M.

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The low Ethiopian labour cost (average monthly wages for operators reportedly vary from US $ 45 to 60/month) is, however, significantly offset by low labour productivity and high personnel rotation


According to the Myanmar Garment Manufacturers Association (MGMA), Burmese

garment exports jumped to US $ 1.46 billion in 2015, accounting for 10 per cent of the country’s export revenues, and the country is now heading to an ambitious target of US $ 12 billion by 2020. On the other hand Ethiopias, in FY 2014-15, exports of yarns, grey fabric, garments and traditional handloom products together generated US $ 60 million, which is merely a fraction of Myanmar’s earnings from the sector. The flurry of orders and investments however has been undoubtedly stronger for the latter.

On the surface of it, the scales appear to be tilted in favour of Ethiopia and few other African Nations. But before any conclusions are drawn, Myanmar’s landscape is bubbling with developments that must be taken note of.

The intent to pave the path Almost immediately after the military rule concluded in Myanmar, garment manufacturing was amongst the sectors highlighted by the authorities as a key area of focus and the focus has only grown sharper with time. The significance of the garment manufacturing sector grew more prominent when the Myanmar Government launched its first National Export Strategy (NES) in March 2015, outlining a five-year plan that aimed to

improve the country’s export capacity. Under the NES, seven key sectors were identified to have great potential to drive economic development and employment generation, which included the textiles and garment industries.

Burmese foreign relations, Burmese advantages… Its 2014 exports were majorly destined to locations such as Japan (38%) and Korea (31%), out of which Japan offers GSP privileges to Myanmar. The exports to EU contributed to the total a 23% share. What could possibly cost Myanmar by a huge fraction is a lack of formidable trade arrangements with key market as compared to its competitors. Ethiopia enjoys AGOA extension for the coming decade, and Vietnamese TPP and EU-FTA is a genuine threat. The Union of Myanmar Federation of Chambers of Commerce however is hopeful that Myanmar and the US will resume discussion on GSP

Plus status in the coming months. With enhanced prospects of the US further relaxing sanctions and even granting GSP benefits, the MGMA anticipates that Myanmar’s garment sector will experience exponential growth in years ahead, creating around 1.5 million new jobs from its current level of approximately 250,000 and generating US $ 12 billion in export value by 2020.

At the same time, Myanmar is also a WTO member and its Most Favoured Nation (MFN) status allows it to export at low tariff rates to other member countries. Another factor that is being designed to play to Myanmar’s advantage is the position it enjoys in the ASEAN. Myanmar is part of the China-ASEAN Free Trade Area (CAFTA), which was formally established in 2010, removing import duties on a great number of tariff lines between China and ASEAN countries – a magnificent opportunity for Myanmar to become a new manufacturing powerhouse. The CAFTA Agreement went into

Can Myanmar carve a niche for itself?

Since the industry began, cheap labour has been the apparel manufacturing industry’s North Star guiding the search for new sourcing hubs. While quite a few locations make the cut based on this single criterion, the list shrivels as various other internal and external factors start playing their influence. Myanmar (Burma), although freshly out of a national turmoil, is one such country that has caught the fancy of apparel retail giants such as Gap, H&M, Marks & Spencer, Primark, and N Brown Group plc – a convincing list that ensures the country, if mentored right, will be a serious apparel business contender.

Permitted Garment Manufacturing Enterprises by Myanmar Investment Commission in 2016 (till June)

Name of Company Location Country of Origin

Glamour Garment Company Limited Yangon Region, Hlaing Thar Yar Township, Industrial Zone - 5

Myanmar

Panda Textile Company Limited Mandalay Region, Sintkaing Township, Paleik Town

Myanmar

Roo Hsing Garment Manufacturing Company Limited*

Yangon Region, Hlaing Thar Yar Township, Industrial Zone

Taiwan

Toya Myanmar Co. Ltd. * Yangon Region, Hmawbi Township ---------

*Fully Foreign Funded Investments

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upgradation in 2015 to raise bilateral trade to US $ 1,000 billion (from about US $ 480 billion in 2014) and ASEAN-bound FDI to some US $ 150 billion by 2020. Such an increase in trade of goods and services as well as economic and technological cooperation (i.e. technology transfer) is expected to give an extra push to Myanmar’s garment industry in the mid-to-long term, including relocation of China-based garment manufacturers to the country.

The Chinese relocations can have interesting manifestations because while Ethiopia has received interest from Indian and Sri Lankan manufacturers predominantly, and Vietnamese market witnessed few Chinese relocations, Myanmar can be expected to receive the product prowess from China (The Myanmar Investment Commission (MIC) allows 100 per cent FDI in setting up textile and garment factories in the country). Vietnam is working towards reinforcing its niche in

product categories like outerwear, and Ethiopia, and similar to Bangladesh, will build its basics expertise.

Simplifying procedures & developing infrastructure Myanmar has announced plans to introduce an electronic import export clearance system named Myanmar Automatic Cargo Clearance System (MACCS) and Myanmar Customs Intelligence System (MCIS) by November 2016 in Yangon area, including international ports, Yangon Airport International Cargo Terminal and Thilawa Special Economic Zone.

Under the recently announced NES, the agenda of development of export infrastructure (e.g. deep sea ports), production locations (e.g. sector-specific economic zones), country quality standards in compliance with international standards, as well as upgrading of the existing regulatory and legal framework to better protect

the rights of both producers and workers have gained traction. Highlight activities in this strain will be two road sections on the Yangon-Mandalay highway being upgraded as a pilot project. The new Construction Ministry has also undertaken a project to build low-cost housing units that cost less than K10 million (US $ 8395) in Naypyidaw, the capital of Myanmar.

In particular, the NES acknowledged the need for the garment industry to move up the value chain, advising it to move towards operations on a “Free-On-Board” (FOB) basis from its current CMP system as a longer-term development goal. In the wake of the NES launch, the MGMA has arranged workshops to help factories learn to handle “FOB” operations, with topics including production planning, merchandising, logistics, communications and audits.

Reducing trade barriers for traders and manufacturers based in Myanmar, the Government introduced a new, fully online export and import

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Pathein (8) Yangon (288)

Bago (15)

Myanmar

Weaknesses Missing raw material suppliersUnder-developed banking sectorNo management workforce capacity

building exercise underway

StrengthsThe latest National Export Strategy (NES) identifies textiles

and garment sector as a key sector which will drive economic development and employment generation

Myanmar is also a WTO member and its Most Favoured Nation (MFN) status allows it to export at low tariff rates to other member countries. Besides the country has duty-free access to the Japanese market

Talks are on to revive preferential trade agreements with the EU and US

Massive interest shown by Chinese factories in the form of relocations and investments

BRIEF CASE: MYANMAR

Areas with major presence of apparel manufacturers (figures in brackets indicate the number of factories in that region)Source: Data extracted from Myanmar Garment Manufacturers Association

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Area-Wise Distribution of International Apparel Manufacturers In Myanmar

S. No. Name of companies Location Country of Origin

1 Chai Moon Garment Pathein Township of Ayeyawady region and Dagon Myothit (East) Industrial Zone

Malaysia

2 Honeys Garment Industry Ltd. Yangon Industrial Zone, Mingalardon, Yangon Japan

3 World Jin Garment Thardukan Industrial Zone, Shwe Pyi Thar, Yangon

Korea

4 Shin Sung Garments Bago Korea

5 Myanmar Solamoda Garments Group

Shwe Than Lwin Industrial Zone, Hlaing Tha Yar China

6 PT. Sungintex Shwe Than Lwin Industrial Zone, Hlaing Tha Yar Indonesia

licensing system in early June 2016. Companies can now print out an export and import licenses through the Myanmar TradeNet website after filling out the application form and paying the licensing fee through an e-payment system.

Proactively addressing the labour concerns Myanmar has actively taken notes from the global apparel manufacturing scene and worked proactively on giving greater rights to workers. Country’s first Labour Organisation Law was brought out in 2011. MGMA also ratified a Code of Conduct for its member companies as a guide and framework for responsible business practices in the country’s garment sector.

The dampeners Like most of the existing and upcoming hubs, even Myanmar is

yet to build a vertically integrated ecosystem locally. Given the ambitious target of US $ 12 billion by 2020, it will take a major effort for Myanmar to overcome this barrier within such a short period of time. At the same time, lack of funding channels is a gnawing concern. In Myanmar, the garment industry consists mostly of SMEs that do not have the necessary financial resources or knowledge to secure a loan from the financial sector and the country’s banking sector is vastly under-developed. As of May 2016, only 13 foreign banks were permitted to operate in Myanmar. These banks are allowed to offer a narrow range of services and although they are allowed to provide credit to local banks and financial institutions as well as foreign companies, they are not allowed to participate in retail banking operations or engage in direct lending in local currency.

Myanmar has actively taken notes from the global apparel manufacturing scene and worked proactively on giving greater rights to workers

Hub Review

Attribute/Country

Ethiopia Myanmar

Average Wage (US $ per month)

52 85

Industrial Estate (Land) purchase rate (US $ per sq. m.)

NA Foreign companies are not permitted to purchase land

Industrial estate rent (US $ per sq. m. per month)

4 0.39

Electricity rate for business use (US $ per kWh)

Rate per kWh: 0.04

Rate per kWh: 0.12

Basic monthly charge for electricity (US $)

Nil Nil

Water rate for business use (US $ per cu. m.)

Rate per cu.m: 0.31

Rate per cu.m. 0.88

Basic monthly charge for water (US $)

17.82 Nil

Gas rate for business use (US $)

NA Rate per 1,000 cu. ft. : 8.61

Basic monthly charge for gas (US $)

NA Nil

Corporate income tax rate (%)

35 26

Personal income tax rate (highest rate, in %)

0-35 1-20

Value-added tax (VAT) (standard rate in %)

15 5

Currency Exchange Rate (vs US $ 1)

Ethiopian Birr (ETB) 21.92

Kyat 1165

GDP (US $ billion)

61.54 64.87

Population (in million)

54.3 101.8

Literacy Rate (in %)

49.1 95.13

No. of apparel and textiles units

300 >200

Employment in apparel and textile units

10,000 20,000

Total exports (RMG, in US $ billion)

0.4 1.4

Number of major ports

0 (landlocked) 9

Trade tie-ups China, Sudan, Common Market for Eastern and Southern Africa (COMESA), Africa free trade zone, AGOA

ASEAN (AFTA), ASEAN JAPAN Comprehensive Economic Partnership (AJCEP), ASEAN Korea, ASEAN-Australia-New Zealand FTA, ASEAN-China, ASEAN-India

Comparison of investment-related costs in Ethiopia vis-à-vis Myanmar

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Science of Apparel Manufacturing: Design Thinking

Rahman Hasibur, MD, Solstice (a US $ 70 million Dhaka-based apparel export house), is championing a radical shift in the problem solving paradigms. The framework proposed by him derives from the ‘Design Thinking’ ideology by David Kelley – a Stanford University Design Post Graduate, and Tom Kelley – a Management Post Graduate from University of California, Berkeley. The essence of Design Thinking is extremely simple – when you commence your journey, you should keep every odd in mind, and based on that you should be prepared for every eventuality. One segment Rahman is targeting is training, which he believes is more about repetition than skills... Exclusively for StitchWorld, Rahman discusses his training methodology, which aims to de-stress workers in apparel manufacturing…

The success of training lies in the methodology. In a garment industry,

most training schedules have a very short span – of one day, so it is important to make a lasting impact through proper methodology. In the course of research, it was found that religion is very powerful in teaching a certain perception and the only thing which has made religion so powerful today is repetition. You say the same thing so many times that you start believing it. In industrial behaviour, it would imply observation, imitation and repetition.

In garment manufacturing, nobody is doing a new thing everyday, yet whenever we go to the shopfloor we see work piling up and operators continuously shunting around. Humans by nature are divergent, and no human being is the same. The objective of education is to put them in a convergent situation.

Role of the education is to bring in conformity, so that all of them can do the same thing. In the industrial production environment, conformity is the key, but with shifting thought processes, brought on by overdrive of knowledge, getting conformity is a challenge. Every day, labour is exposed to new beliefs, changes and thinking. In such case, if there is no correct methodology to keep them in the workplace, or motivate them correctly to work in the garment industry, then it will be very difficult for Bangladesh to retain the low-cost environment that it thrives on.

Also migration and worker attrition rate is very high in Bangladesh and India. Even after almost 36 years, since Bangladesh got into garment manufacturing, you will not find any elder person in the system. They move out very fast, as the work is at the cost of their lives. It is very difficult to put Rahman Hasibur, MD, Solstice

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your attention at the needle for 8 hours a day, it is very stressful. Women always feel giddy. They have children to feed, malnutrition and a lot of social issues. They cannot sleep properly at night and there is no proper environment for dwelling. There are so many things that are not taken care of. On the other hand, they are bound to do this arduous work for survival. There is lot of pressure to perform. Not many realize that there are many ways and processes to ease their efforts. This can be done by simply shifting their mindset or providing them with proper set of knowledge tools. Then they will be happy to work and also give you the best stress-free productivity.

Changing the worker’s mindset to enjoy the work they unanimously find stressful... Most of the workers in our industry are uneducated and if you give them a set of lectures and sheets to fill up and practice, they won’t do it. There is only one single methodology that can work for them...: teaching them to do the work rightly. They are only doing one task – stitching, and they are taking it as a marathon, which is not the case; it is a series of sprints. So you only stitch one single perforation at a time and this is the change

in mindset that’s what they need to have. The philosophy is simple, stitching involves one single needle and it never shifts, and it is only the way of handling which is shifting. If you have a set of guides, even if you try, you will not be able to push the fabric in any other way.

Even when turning the fabric in a circular dimension, the operator need not care about the circular motion, because the machine has the guide to stop the edges and the needle is routinely piercing right after one centimetre and this is one single process. The operator is stitching dot by dot and only adding dots per inches, nothing more. So even if stitching an armhole, he/she is attaching 100 stitches – one after another. So this is basically like a process of making a garland, one flower added one after the other without any change in action. We are not giving them this silly lesson. Everybody is asking them to hit the target and stitch as a whole process, putting strain on them.

Breaking down the process into small fragments… In our society, we have a wrong way of judging things. We say ‘practice makes a man perfect’. I don’t buy that... perfect practice brings in perfection, but we have never taught them the way of doing things correctly,

how work is broken down to elements to make it easier. We are always teaching them the wrong way. There is no ‘correct book’ or ‘master’ to teach them this work. My job is for a day only and the process they go through is focused on – ‘how to go through one single perforation correctly’ and rest they will be able to do by themselves. I also introduce workaids, if needed. The basic thing is knowledge to understand the ‘kinesthetic’ between left hand, right hand and right leg. They are not given a proper training for such things and thus it becomes stressful for them. Whenever a good driver is driving his car, he is driving it effortlessly. But, car driving is stressful if you do not know your controls properly.

Every factory owner feels they have a different solution; however, it is not so. Every worker will have the same solution because the process is same. At the end of the day, it is stitching and everybody is performing the same thing. As mentioned before, no needles are shifting; it is only the fabric which is shifting and done by an operator with the help of his two hands. So they have to know how to use their hands. We are trying to teach them how to see carefully and in a proper way so that they need not put a lot of stress. Garment workers are always concentrating at the needle, as such putting huge stress on their eyes.

Religion is very powerful in teaching certain perceptions and the foremost is the value driven from repetitions, doing the same thing over and over again. In industrial behaviour, it would imply observation, imitation and repetition..., an ideal tool to teach sewing operation.

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Contrary to a popular belief, it is not your brain or any limb of your body, but the human eye which ‘eats up’ the maximum energy of your body, around 20%. Human eyes can process 57 GB of data in one second. A critical question to ask is when the workers go back home, are they really replenishing the food they need for their eyes? No... ! Because they do not know that it is their eyes which need replenishment.

Everyday, their visual cortex is being sapped; on the top of it, malnutrition is a major concern today. So if you need to improve the garment worker’s health, serve him food which helps him deal with eye strain. You have to give them some ‘brain food’. I don’t think people are aware of this, or are thinking in this

Contrary to a popular belief, it is not your brain or any limb of your body, but the human eye which 'eats up' the maximum energy of your body, around 20%. Human eyes can process 57 GB of data in one second. A critical question to ask is when the workers go back home, are they really replenishing the food they need for their eyes?

on what food they should eat and how to lead a better life.That is all part of a one-day training schedule... Nobody is going to give you 3 days’ time... Nobody is caring about the amount of energy they are putting in, and at the end of the day this is energy business. The human system is all about energy. You are taking their energy, building the nation, talking big things, but not caring for our people..., which is sad.

Start slow to build perfection and speed...To de-stress the job, we advocate the sequence of Observation, Imitation and Repetition. In the era of ‘pace’, the ‘Observation’ and ‘Imitation’ portion is foregone for speedy

‘Repetition’, which has a neurological cost. The operators only know that they need to work faster and faster. But one must start slow in order to be a fast processor – just as when one learns to drive a car. When operators start slow, they must observe and imitate the process and handling methodology, slowly, and then repeat. With the accurate imitation, the operators will now be in a position to practice the perfect material handling. The repetition will take the excellence to the next level, because there is a neurological angle to it. Neural connectivity is popularly explained with the phrase – neurons that fire together, wire together. Each neuron is connected to the other through electrical conductivity between these dendrites, which are the nerve endings. Every time a certain action is repeated, the connection between the two neurons grows thicker. This thickening facilitates faster conduction between neurons upon more repetition. Soon electricity passes through the neurons so rapidly that the process/action is picked up autonomously by limbs. So you have to have your neurons fired together. Instead, right at the beginning the operators are pushed for speed and thus they are unable to actually

Every factory feels they have a different solution, however it is not so. At the end of the day, everybody is performing the same thing

way. Your eyes are always in action, they are giving you directions. Every calculation that you are making is with the help of your eyes. You are not giving any break to your eyes… In China, they teach children how to massage their eyes. There are six steps to eye massage, but in our system nobody knows that there is such a thing called ‘eye massage’ and that the garment workers should compulsorily have this activity after every 2-3 hours to de-stress themselves.

We have a research library where we are creating these modules with the help of animators. We are making visual presentations. We just show them a 15-minute video on how they have to do these things. And afterwards we will give them a little speech

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In garment manufacturing, nobody is doing a new thing everyday, yet whenever we go to the shopfloor we see work piling up and operators continuously shunting around. They must be put in a convergent situation to bring in conformity, so that all of them can do the same thing. With overdrive of knowledge from different heads and consultants hired to do the job, getting conformity is a challenge.

learn and internalize the lessons they should be taking.

You basically tell the operators that they are in a stressful environment, and that these are the small interventions which if followed will help them de-stress. It doesn’t cost the management anything but by doing this, entrepreneurs are doing a service for themselves, and by communicating that you have struck the right chord

with the workers, you are addressing them directly.

There are lots of IEs in the system, but they do not actually understand the human potential. They cannot empathize. They are very robotic. The efficiency in driving lies in how slow you can go; it is never how fast you can go. There may be a better approach by re-engineering than the traditional SMV system. To balance a line, the production manager is pulling all the good workers

to the critical lines and the other lines are suffering. The owner is very happy that a certain line is efficient, so is the buyer. But overall they are not achieving efficiency. We teach them process techniques. People are using rollers, jigs, pulleys, but there are better ways of managing things. In most of the cases, efficiencies plummet suddenly. Mostly, every factory has a customized system. The owners don’t know much about the production process

– they depend on the line chiefs whose performance depends on where he found his first job. Without operator training, if we just re-engineer the layouts and systems, then 15 per cent efficiency could be achieved; but with operators training (7 days) – 30 per cent efficiency enhancement can be achieved, and this is proven. We have taken the daily output of 45 machines from 900 pieces to 1,200 pieces through interventions.

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Sai-Tex: Pioneering the Vietnamese Denim Wave

The 150-year-old denim trade has turned more exciting with the recent addition of Vietnam and Bangladesh to the list of competitive sourcing hubs. Peculiarly enough, while Vietnam is specializing in providing high-end, value-added, and differential denim, Bangladesh is thriving in the high-volume, mass manufactured denims. “Our territories and niche are clearly marked. We are looking at offering to the denim industry a prowess equivalent to Turkey’s,” says Md. Ifthikar, Production Director, Sai-Tex, who has spent a decade working in the global denim industry. In an exclusive interaction with StitchWorld at their impressive manufacturing unit on the outskirts of HCMC, Ifthikar unveils how Sai-Tex’s pioneering efforts bear the hologram of each and every latest development.

The remarkable journey of Sai-Tex in the last decade was steadfastly focused on acing

every possible aspect – product,

infrastructure, machinery, processes,

and sustainability. Ifthikar, like all

denim enthusiasts, is driven by an

infectious passion for denim. Being

a through and through operations

professional, Ifthikar’s passion

surpasses the aesthetics and

product development aspect, and

manifests in providing value to the buyers with functionality-oriented product designs and running watertight operations.

The Product In denim, the rich possibilities that can be brought out with an innovative concoction of chemicals, scrappers, laser beams, pumice stones, etc. are no secret. “The possibilities are so myriad that

The entire factory’s performance can be accessed by Ifthikar at any given time using the G-Pro RFID-based real time data collection systems integrated with FastReact ERP.

The denim finishing floor at Sai-Tex is strikingly clean, and devoid of the pungent odour and dampness usually associated with a laundry

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sometimes one comes up with a fabulous wash detail but forgets to keep track of the ingredients and processes that went into it,” jibes Ifthikar. Speaking of wash developments, the lab at Sai-Tex, equipped with almost every technology available in the market today, is a designer’s delight. The pulsating design vibe is palpable when one goes through the material library stocked with striking denim swatches such as differently coloured fabric’s right side and wrong side. The result is not achieved with differently coloured warps and wefts – instead the fabric is treated first with resin and then with different settings of laser applications on both sides. The factory’s finishing floor is replete with operators reproducing other such similar intricate finishes with lasers, sandpaper, scrapers, etc. on denim jeans loaded on legger dummies.

Although a dedicated denim manufacturer for the product range with FOB range of US $ 18-22, Ifthikar simplistically refers to the products as basic 5-pocket jeans. In fact, he believes that a 5-pocket jeans is as basic as a denim

bottomwear can get. “Value is added nonetheless in three ways – with the raw materials used, comfort provided to the wearer through smallest of design interventions, and the fact that the products are being manufactured at our plant,” he inputs. Ifthikar elaborates on the comfort provided to the wearer with a G-Star (one of the most renowned buyer from the company) jean. The inseam is not done with a mere

overlock stitch, instead it uses serging of individual plies,

joining both the plies with a chainstitch,

and one top stitch. Such a construction ensures the seam does not

twist when worn, washed, or ironed.

“These are the small things that add to

the quality and wearer’s comfort. This instead gives a clean finish, a rich look and represents the value we provide to our customers,” Ifthikar avers.

While the focus on innovating and designing is definitive, the next direction is blending innovation with sustainability. The washes and styles finalized at Sai-Tex for G-Star’s next line are getting the PP bleached look without using PP sprays. Ifthikar is particularly

The inseam is

not done with a mere overlock stitch,

instead it uses serging of individual plies,

joining both the plies with a chainstitch,

and one top stitch.

Denim being abraded with sandpaper Mechanical scraping of denim for ‘controlled destruction’ of the fabric

Once scraped, the fabric was also being sewn to develop a surface manipulation

The PP spray region: Next year onwards, Sai-Tex will start using an indigenously developed eco-friendly alternative to PP spray for G-Star products

Whiskers being developed

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utilize only one wash for erstwhile procedures that utilized a minimum of three washes.

The Production Floor The value-added product has supported the company to ensure that there is no compromise on product quality and settling for mediocre or traditional unproductive and inefficient systems. The entire factory’s

to finishing department keys-in the production figures and the MIS makes available the latest status immediately. “All this ensures that I am not dependent on my laundry managers and don’t have to wait till 10 O’ clock in the morning to know what is the status,” he reasons.

Much like the industry norm for complex products, Sai-Tex deals with small order quantities (3,500 pieces) of value-added products and

changed panels,” Ifthikar avers. Correspondingly, he devised Central Part Units, i.e. instead of a single assembly line, where there are three types of lines – front, back, and assembly. Each line type has mutually balanced targets and a Supermarket exists between assembly and parts. Alongside this, the changeover team looks after areas such as threads, presser foots, needles, etc. to be changed. “Above

pleased with the development. “This is a landmark achievement since it is imminent that PP sprays will be phased out of mass production just as sandblasting was. We have superseded the general market graph with this accomplishment. Next year, around this time, when these styles enter the production floor, our success and work culture will charge the atmosphere like never before,” he shares. The R&D team at Sai-Tex has also been successful at devising substitute procedures that

performance can be accessed by Ifthikar at any given time using the G-Pro RFID based real time data collection systems integrated with FastReact ERP. “Factories generally use manual challans and stay stuck in the rut of follow ups of stale information. We on the other hand have cut discrepancies by 70-80%,” he shares. Sai-Tex has done away with paper-based production reporting system. Instead, there are computer terminals at shopfloor with restricted user-access, every supervisor from cutting to sewing

yet the average style changeover time at the factory is one hour – a staggeringly low statistic. The impressive feat comes on the back of implementation of Kanban, Supermarkets, Central Part Units, and Automation, a judicious combination of management tools and technology.

“You will see that for any product, in 9 out of 10 garments, the back is different and the front similar or vice-a-versa. So, technically the net style changeover effect should be on the section preparing the

Templates, which serve as a guide for areas that must be scraped and abraded, being developed on-site

Apart from serving as material transport systems, the colourful baskets on the sewing floor also serve as a visual indicator of WIP. Each basket can accommodate only 10 pieces and there can only be 40 such baskets in one line at a given time

The Supermarket between Front and Back CPU, and Assembly CPU

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Sai-Tex has carved its reputation as the sculptor of the Vietnamese denim manufacturing industry. The factory – a monumental expression

of Sanjeev Bahl’s (President, Sai-Tex) vision of sustainability and manufacturing excellence – stands tall in the city of


brought down by 37 per cent to mere 8 minutes.

Traces of automation at the Sai-Tex premises reflect true need and tangible savings, especially in the conveyorized hanger that picks up the freshly laundered jeans, passes them through the curing chamber, and thereafter takes them up to the roof for drying (in hanging condition) and within 10-15 minutes brings the pieces

all, the assembly never runs out of loading,” Ifthikar highlights.

The benefits of this system are manifested as time and material handling savings as well. In conventional assembly lines, an operator working on front also transports the back. CPUs help eliminate this transportation wastage. Talking about the time saving, Ifthikar shares that for a product with Total SAM of 14 minutes (5 minutes: front, 3 minutes: back, and 6 minutes: assembly), the sewing throughput time is

QUICK FACTSProduct Denim Bottomwear Annual Turnover US $ 96 millionBuyers G-Star

The conveyorized hanger picks up the freshly laundered jeans, passes them through the curing chamber, and thereafter takes them up to the roof for drying (in hanging condition) and within 10-15 minutes brings the pieces down to floor

Company Review


down to floor. This reduces the residual moisture in the garment for subsequent drying. “We look at automation because we need to be very cost-effective. Today sourcing hubs are thriving because of cheap labour. The ones who are passionate about the product do not appreciate this status quo. Besides, more labour, implies more complications, more human touch, and less consistency,” Ifthikar argues.

In a striking paradigm, the production teams and technicians are held responsible for quality at Sai-Tex. Questions related to quality lapses are asked to the production team. “Quality department is responsible for timely highlighting of troubles, and if the production teams wait till the QC highlights the shortcomings, then what are the functions of production teams?” asks Ifthikar. He further sheds light on the nipping in the bud approach to quality pitfalls with the reason that nothing hurts productivity like poor quality, not even machine

breakdowns, lack of skilled labour or absenteeism.

Yet, although the buyer’s QC manual mandate one QC for every 25 operators, Ifthikar has deployed Roving QCs and in-line QCs at every front, back, and assembly line. “Front and back lines’ output serves as an input to the assembly process and we have to ensure that it is perfect so that when it goes to assembly, it does not come back,” he explains. Another factor that adds to Sai-Tex’s competitive approach to quality is that the factory does not outsource any washing procedures.

For days to come… As TPP regime kicks in, Sai-Tex will be ready with a fabric processing unit by next year. In the first phase, the factory will be ready with the finishing infrastructure. “With this we will be able to control wash defects, and above all not depend so much on bleaching,” Ifthikar shares. Eventually, in five years the plant might go on to include weaving infrastructure.

The detailing of technology was evident from the floor to ceiling of the factory. Two huge eight feet diameter ceiling fans making slow

rotations resulted in ample air circulation for cooling the large shopfloor with slow breeze.

Md. Ifthikar, Production Director, Sai-Tex

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Tech Reads

TECH READS – IIAn apparel factory is a dynamic classroom. The managers must be alert as lessons flow in from all directions – from bottlenecks that need to be resolved to targets that must be met and everything in-between and beyond. Sometimes, the same managers also need to retreat to a repository of wisdom to take a fresh perspective on shaping businesses. To make matters easy when it comes to choosing the source of wisdom, StitchWorld curates a list of must-reads for apparel manufacturing managers, hand-picked by industry experts to regularly keep you updated.

FACTORY PHYSICS BY HOPP AND SPEARMAN

Recommended by Anand Deshpande, Founder, Aadma Consulting

Why read ‘Factory Physics’?

This book encapsulates production management as a science rather than merely an art and demonstrates how production can be improved through scientific bent of mind and data analysis along with intuitive insight. In essence, the book posits that the managers and engineers must work towards identifying opportunities for improving existing systems, design effective new systems, and make the trade-offs needed to coordinate policies from disparate areas. This work

has won the 1996 Institute of Industrial Engineers IIE/Joint Publishers Book of the Year Award.

Excerpts: “It is interesting to note that both, the best-case scenario and worst-case performances occur in systems with no randomness.”

PEOPLE AND PERFORMANCE BY PETER DRUCKER

Recommended by S Badri Narayana, Director – Operations Excellence, FLAME TAO Knoware

Why Read ‘People and Performance’?

Peter Drucker, an Austria-born American management consultant, educator, and author, is often called the ‘The Founder of Modern Management’. He predicted the concept of ‘knowledge worker’ in the mid-20th century and times have only evolved to prove him eerily correct. People and Performance is one such piece of literature which distils Peter’s intelligence. The book details on the way people think, and behave. This discourse shapes up the key tenet of the book, i.e. how to develop different kinds of people, and how to manage and enhance

their performance, making the book a must-read for managers conjecturing how to coach a perfect team. The key take away from the book however remains that there are essentially three types of people – the high performers, the average performers and the poor performers. The high performers are self-motivated and need a pat on the back every once in a while to keep them motivated. The average performers need frequent inputs so that they can perform better than average. The poor performers on the other hand need to be given simple tasks and timely follow-ups to ensure that the tasks are done correctly.

Excerpt: “The only choice for an institution is between management and mismanagement.”

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