2 StitchWorld 3 StitchWorld 4 StitchWorld Editor-in-Chief DEEPAK MOHINDRA VOL. XIV • ISSUE 5 World www.apparelresources.com Technical Editors Stitch PAUL COLLYER (UK) Technology and Management in Sewn Product Industry CLAUDIA OLLENHAUER-RIES (GERMANY)

Copy Editor VEERESHWAR SOBTI Asst. Copy Editor TechByte SAHIL SEHGAL 8 WHY HAS SUSTAINABLE WASHING AND Sr. Technical Correspondent FINISHING OF GARMENTS REMAINED OUT ANCHAL RAI OF REACH FOR SMALL- AND MEDIUM- LEVEL MANUFACTURING COMPANIES? Design & Production

RAJ KUMAR CHAHAL 18 PEEUSH JAUHARI NewsTrack (L-R) Ruchika Dawar, Assistant Professor, SATYAPAL BISHT NIFT Jodhpur; Prof. (Dr.) Raghuram 10 BANGLADESH: DBL GROUP MULLS Jayaraman, Director – NIFT Jodhpur; Dinesh Subscription Enquiry GARMENT FACTORY IN ETHIOPIA Kumar Sharma, AGM – Operation, Shahi RANI MAHENDRU - 011-47390000 Exports, Faridabad; and Ankur Saxena, 12 INDIA: ATDC CERTIFIES MASTER Assistant Professor, NIFT Jodhpur at the TRAINERS IN COLLABORATION NIFT Jodhpur Convocation-cum-Graduation Programme Publisher & Managing Director WITH AMHSSC

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www.apparelresources.com  JULY 2016  StitchWorld 5 6 StitchWorld EDITORIAL

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 brandApparel 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.

Deepak Mohindra Editor-in-Chief

Read and comment on my blog at http://stitchworldmagazine.blogspot.com

www.apparelresources.com  JULY 2016  StitchWorld 7 Tech Byte

TECH BYTES 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?

With the machinery used for sustainable washing and and easily manageable. The only factor that affects the finishing of garment being sold at very high prices by the performance of these technologies is the human handling. machine manufacturers, it is extremely difficult for small- and If not done properly, the machine might face a breakdown. medium-level companies to adopt these technologies. Big Currently, these technologies are used extensively in Europe manufacturing firms might be able to buy the machinery for and might grow popular in India, Bangladesh and Vietnam, sustainable washing and finishing if the margins received are depending upon the demands of the buyer. good, but with the current low and the tough competition in KHALED OBAID ULLAH the market, even the high-level companies are not ready to Managing Director, Eco Sourcing Ltd., Dhaka, Bangladesh 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. Alongside the obvious factor of high investments needed, the most important reason of non-acceptance of the technology This spectrum of machineries does not use water or steam. is the absence of knowledge and skill about the machinery Instead it makes use of laser and ozone, which do not hamper and technology amongst the workers. With machinery the machinery and its components. Breakdowns, if any, can be being expensive and imported, if handled without proper easily managed. knowledge, the technology and machinery will face regular SRIHARI BALAKRISHNAN breakdowns. And since the machinery is not developed President, K G Fabriks Ltd., Coimbatore, India 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 To be very honest, the cost of machinery used in sustainable treatment plants, PH controllers, etc., the quality of water washing and finishing is very high. With technologies that required for the certain kind of wash can be easily altered. need a lot of capital investment, a manufacturer would need great orders and demands from buyers which is currently RAJESH SACHDEVA unavailable in the market. The small- and medium-level Managing Director, Upper Class Fashions, NCR, India companies are having a hard time with the usual orders that they are receiving right now. Moreover, currently the The main reason for the sustainable washing and finishing of market is dull and these manufacturers can’t really invest in garments technologies not being taken up is the high cost of the new technologies. The tough competition in market does machinery involved. Besides, currently, the products manufactured not allow even high-level companies to invest in these using sustainable washing and finishing technologies do not yet machineries and technologies. earn plush margins. With fierce competition in the market today, There is no harm in offering sustainable washing to buyers small- and medium-level companies do not have enough capital but looking at the cost of production of garments, investing to invest in the technologies as the work. These technologies in the technology for a few good orders does not make sense. are at low risk of breakdown and are not easily repairable if the The companies investing in the technology are completely breakdown happens. dependent upon the demands of the buyers. If the buyers ask If the Government motivates the manufacturers, washers and for such products and are ready to pay for the technology, dyeing units by giving subsidy or certain tax exemption or so that the manufacturer doesn’t face a loss afterwards, it incentives in form similar to what has been done with solar will incentivise the manufacturer to invest in the technology energy, the sustainable washing will be more widely accepted. regardless of the scale of the company. HANUR KHAN The technology being so costly is not susceptible to Proprietor, Genesil Technologies, NCR, India breakdowns and if it does, the maintenance is cheap

8 StitchWorld  JULY 2016  www.apparelresources.com Tech Byte

In sustainable washing and finishing of garments, the cost of is sophisticated and not so easy to use in any way, as is the technology available is not very high, and the machines are their perspective. user-friendly. The finances involved in acquiring the machine SUNIL TANDON is not the factor that is restricting the small-scale industries Proprietor, Excel Chemicals/Eureka Chem India, Delhi, India 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. The adoption rate of sustainable washing and finishing For example, Clariant provides sustainable chemicals for technology is low, especially for the small- and medium- washing of garments, but their market price is quite high, which level manufacturing companies, because the investment is the reason that not all manufacturers can use it. required is perceived to be hefty by these manufacturers. High-end machinery generally comes with a user manual But the investment is one of the various factors that must be indicating any services the machine needs on a daily weekly considered. Savings such as reduction in amount of resources, or a monthly basis. Even in cases where the machine breaks time, manpower, and cost of poor quality are the other down, there are agencies and maintenance companies which important aspects in the situation. A completely sustainable are dedicated for such tasks. laundry should be able to generate 100 per cent ROI in two years. As an increasing number of retailers move towards The performance of these machines is absolutely dependent sustainability, I can foresee a huge boom in the market. on the quality of the water used, the softer the water used, the better the machine performs both in terms of longevity and We do not see ourselves moving the production base closer having lesser breakdowns. Scaling, also known as hard water to hubs like India and Vietnam for another five years at least. stains, is a major concern for any machinery that uses water, Once the demand in these regions surges, a relocation can be especially for laundering, where chemicals are also involved. considered. NEERAJ BAJAJ MANUJ KANCHAN GM (South Asia), Jeanologia, Valencia, Italy 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

TechByte StitchWorld AUGUST 2016 Question

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?

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

www.apparelresources.com  JULY 2016  StitchWorld 9 News Track

Bangladesh: DBL Group mulls garment factory in Ethiopia Sri Lanka: Brandix honours its top supply chain partners

ri Lanka-based Brandix Group announced its best Syear 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

DBL Group is planning to set up a US $ 100 million integrated textiles and today, out of which 100 were called off this year. garment factory in Tigray, Ethiopia The 350 vendors would be further reduced and will be brought down to 150 by 2020. Presenting these ncouraged by the duty For construction work key suppliers with an insight into the dynamics Ebenefits enjoyed by certain of the project – a debt- that propels the industry and a glimpse into the African nations to the US funded venture of DBL (and future, Brandix forecasts it would double sales in markets, leading Bangladeshi not a joint venture) – the the next five years, through focus on speed, quality, garment manufacturer Bangladeshi conglomerate innovation and price. “Brandix recognizes both and exporter, DBL Group is has reportedly obtained US the elements, emotional and rational, in its effort planning to set up a US $ 100 $ 15 million in loans from to produce phenomenal products better, faster million integrated textile and the Swedish Government’s and cheaper,” said Priyan Fernando, Chairman, garment factory in the Tigray development fund – Brandix Group. region of Ethiopia, claims Swedfund at an interest rate The supply chain partners were awarded in two media reports. of 6 per cent and another groups: one for ‘speed partners’ and one for ‘top US $ 55 million from the “The new factory will go into vendors’ in 12 categories, covering suppliers of production by February next Ethiopian Development Bank at nearly 7 per cent. bra cups & padding; packaging; thread; packing year. We expect to employ trims; sewing trims; labels, tags & stickers; lace; 3,500 workers. Of them, 150 “We aim to export to the US, embellishments; elastics; knitted synthetic fabric; will be employed as executives European, African and Middle woven fabric; and knitted woven fabric. A total of – all from Bangladesh,” East countries from Ethiopia,” 33 awards were presented, including 19 Speed reportedly informed a senior the DBL official maintained to Partner awards. DBL official to a Bangladesh the daily newspaper, adding, daily, adding, “We are going to “DBL is a Platinum-rated Brandix has set a benchmark in sustainability Ethiopia as this African nation apparel supplier to Swedish and is an international award winner of eco- enjoys zero-duty benefits from retail giant H&M and our main friendly manufacturing for its commitment to best the United States on exports. target is to supply to them.” environmental practices. The group employs more The benefits will continue than 48,000 people at its manufacturing facilities It may be mentioned here that in Sri Lanka, at the Brandix India Apparel City in for a long time as Ethiopia Bangladesh, despite being Andhra Pradesh, and in Bangladesh as well. is a member of the Least an LDC, does not enjoy duty Developed Countries (LDCs).” benefit from the US.

TRADE STATISTICS

Global Apparel Global Apparel imports Canada’s Global Apparel Global Apparel Imports by the US: by US (Jan.-Apr. 2016) Imports (Jan.-Apr. 2016) Imports by the EU: Jan.-Apr. 2016 UVR Decreased Jan.-Feb. 2016 Values Decreased Values Decreased Volumes Increased 2.56% 2.73% Global Apparel imports by 0.3% 1.44% EU (Jan.-Feb. 2016) Volumes Increased Values Increased UVR Increased 0.07% 1.32% 2.78%

10 StitchWorld  JULY 2016  www.apparelresources.com 11 StitchWorld News Track

India: ATDC certifies Master Trainers in collaboration Vietnam: Gerber with AMHSSC Technology hosts pparel Training and techniques while assuring The nominated masters conferences on ADesign Centre (ATDC), in their basic domain knowledge. were assessed on the basis AccuMark 10 collaboration with AMHSSC Addressing on the occasion, of their domain knowledge (Apparel Made-ups and Dr. Darlie Koshy DG & CEO, (Sewing Machine Operator and 10.1 Home Furnishing Sector Skill ATDC & IAM said, “There & Hand Embroidery), time Council), has inaugurated is a vital requirement of management, motivational erber Technology, the the first Recognition Prior Master Trainers in ‘Teaching behaviour, discipline at GUS-based pioneer of Learning (RPL) programme Pedagogy’ while also further workplace, language and integrated software and to upskill the workforce in developing their Core literacy and supportive automated solutions for Garment, Made-ups & Home Competencies in Vocational behaviour for leaders. The the apparel and industrial furnishing Industry. The Training in Apparel. This Masters, after certification, will markets, recently hosted main goal of the Orientation, initiative is a very significant conduct training programmes ‘Gerber New Product Assessment & Certification one as it will certainly go a on their respective sectors and & Integrated Solutions’ Programme was to upgrade long way in promoting high act as mentors for the trainers Conferences in Vietnam. the knowledge base and quality Trainers to help in in their particular region for The conferences took skill levels of Master Trainers; improving the quality of upgrading and enhancing place at Hanoi and develop them in basic training, while bringing about their knowledge base and Ho Chi Minh City. Gerber pedagogy; and teaching overall systemic change.” skill level. experts and professionals presented new functions of Gerber AccuMark 10 and 10.1, which offer Vietnam: VTG 2016 begins this November enhanced pattern design and development, he 16th edition of textile and garment industry printing machinery, etc. Such marking, nesting, and TVietnam International of the country, by providing wide ranging exhibits show spread and cut planning; Textile and Garment Industry a platform to the Vietnamese how much Vietnamese textile new AccuPlan cutting Exhibition (VTG), organised by T&C manufacturers to and garment sector has to and plan software; and Ministry of Industry & Trade show their innovations offer to the world. the technology provider’s – Vietnam National Trade and capabilities. Over the course of time, the integrated solutions for Fair & Advertising Joint-stock This year again, the fair four-day show has seen a the apparel industry Company, Yorkers Trade & will focus on segments gradual increase in footfall to enable them meet Marketing Service Co. Ltd. and like spinning machinery each year as interest in textile, the challenges of mass Chan Chao International Co. & accessories, looms, yarn garment, and accessories customization, or made- Ltd., is all set to raise curtains processing machinery firms has also been on the to-measure environments on November 23 at Saigon & accessories, weaving rise in Vietnam. VTG 2016 and optimizing Exhibition & Convention machinery & accessories, will continue with its aim inventory levels. Centre – SECC, Ho Chi Minh bleaching & washing to attract trade visitors, Gerber, which develops City, Vietnam. machines, chemicals and buyers, and executives and manufactures its VTG has become one of dyes, embroidery equipment, from T&C companies products from various the most influential and knitting machinery, testing and regional research locations in the United comprehensive exhibitions for equipment, textile screen institutions worldwide. 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.

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

12 StitchWorld  JULY 2016  www.apparelresources.com 13 StitchWorld News Track

Hong Kong: AMF Reece launches buttonholing machine with India: PK Khanna, angle indexer Founder & Chairman -4001 ISBH is the newest accessible with a simple of IIGM Sbuttonholing machine sewing head tilt. passes away on the industrial block, AMF Reece is a world-wide developed by Hong Kong- manufacturer of specialized based AMF Reece. S-4001 industrial sewing machines, A pioneer in the field of boasts the ability of sewing including eyelet buttonhole introduction of modern buttonholes slanted up to a machines, chain stitch machinery to the Indian 30° angle, with an electronic machines, decorative hand apparel manufacturing angle indexer. This will reduce stitching machines, button industry, PK Khanna, the downtime caused by the stitching and wrapping Founder & Chairman, need of mechanical machine S-4001 ISBH has an X-Y indexer machines, auto jig machines IIGM passed away at the drive with a step motor which adjustment, thereby making and trouser sewing units, age of 88 on 3 July 2016. ensures precision and repeatability the operator’s work more including pocket welting He founded IIGM back rapid, easy and accurate. machines. They are also in 1978 and shaped the The machine is extremely easy repeatability of the credited to have developed company to become flexible and all indexing operation; also, due to lack of the first automatic eyelet a comprehensive parameters are fully controlled contact brushes, this motor is buttonhole machine in technology and service from the touchscreen more reliable. the world. provider for apparel, attached to the workstation. The S-4001 ISBH further saves home textiles and Besides this, AMF Reece has It has a standard thread time as it does not require footwear sectors. a patented floating needle catcher and X-Y indexer drive the user to disconnect the technology to imitate the real Driven by an impeccable with a step-motor which indexer as the machine’s hand stitching. business sense and makes it precise and credits sewing mechanisms are easily instinct, Khanna introduced the most relevant technologies to the Indian Apparel Manufacturing Switzerland: Benninger develops washing technology for industry right in time, elastane-based fabrics revolutionizing the manufacturers’ approach enninger, the Swiss Trikoflex’s washing immerse roller and the drum. to apparel manufacturing Bcompany that develops technology takes Keeping in mind the need of technology on the and manufactures textile care of maintaining the textile processing process machinery and has been shopfloor. Going the stretch, elasticity of fabrics involving elastane, the leading partner of the above and beyond the and dimensional the machine takes care of textile industry across the definition of being a stability of the fabric maintaining the stretch, globe since more than technology provider, by incorporating the elasticity and dimensional 150 years, has developed a Khanna ensured IIGM relaxation process stability of the fabric by offered several value- machine to assist in crease- without curling/ incorporating the relaxation added services that free processing of elastane- folding of selvedges, process without curling/ directly addressed based fabrics. thereby achieving folding of selvedge, thereby consumers’ needs, The machine is based on the even shrinkage across achieving even shrinkage while still keeping the concept of drum washing, width while washing. across width while washing. cost reasonable. sold under the brand name The open-width processing Having seen the Trikoflex, and is developed with low and controlled industry’s transformation keeping in mind the increase the washing efficiency up to across 4 decades, the in use of elastane in fabrics 40 per cent in comparison tension for elastane octogenarian was a used today. The washing to conventional net and blended fabrics is of utmost regular sight at industry technology involves a high screen drum systems; importance to retain the fairs and served as a mechanical washing effect 1consumes less water and inherent properties of said constant source of due to front and back washing steam as it has counter-flow fabrics which otherwise knowledge to the technology, which facilitates washing technology and faces may permanently reduce young brigade. quick and efficient removal minimum fabric elongations the stretch and elasticity/ of impurities, thus increasing due to low distance between recovery of the fabric.

14 StitchWorld  JULY 2016  www.apparelresources.com 15 StitchWorld News Track

India: Apparel exporters will soon get relief on imported fabrics: Textiles Ministry USA: EFI acquires Optitex

lectronics For Imaging Inc., a global technology Ecompany, 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 Santosh Kumar Gangwar, Minister of State (I/C) for Ministry of Textiles, combined with Optitex’s technology, will expand addressing a press conference in New Delhi, organized on the completion of two years of NDA Government our textile ecosystem and help our customers set new standards for time-to-market, on-demand manufacturing, cost efficiency and automation in the ndian apparel exporters country as now all the eight textile industry.” Imay soon get some relief states in North East have on the duties paid by them garment and apparel making on imported fabrics. “Yes it centres, so trained workforce is is a long pending demand; available there. few measures are now under Announcing achievements of consideration, so industry may the Ministry and Government soon get some good news in as a whole in last two years, this regard,” replied Santosh Gangwar asserted that MoT Kumar Gangwar, Minister of has taken care of every sector; State (I/C) Ministry of Textiles be it handloom, textile mills, and Pushpa Subrahmanyam, training or education in Additional Secretary, Ministry textile and apparel industry… of Textiles to a question raised “It is first time that we have by StitchWorld. They were not received any complaint addressing a press conference about NIFT admission,” The acquisition, estimated at US $ 52.8 million, shifts roughly 100 in New Delhi, organized members of the Optitex team to EFI, where they will work under adding, “Our textile industry EFI Optitex’s General Manager Asaf Landau on the completion of two now contributes 15 per years of NDA Government. cent to India’s exports. More The Minister added that the than US $ 900 million has Optitex’s 3D technology and best practices empower Government has given many already been spent by the the textile industry’s leading retailers, brands and incentives as well to apparel MoT on various schemes for manufacturers to transform their methods of exporters over the course promotion and development doing business, making it time- and cost-efficient. of time. of the textiles sector. Asaf Landau, CEO of Optitex, proclaims his excitement Also stressing on the recent Approximately five lakh on the acquisition and is positive that the global reports published by additional jobs have been presence of EFI coupled with their growing portfolio international NGOs, Gangwar created in the past two years of innovative textile industry-specific products will assured that the Ministry in the sector.” Additionally, the help the leading customers of the company in fashion will see the reports of those Minister mentioned that one and technical textiles industries. damaging the image of Indian of the biggest achievements The acquisition, estimated at US $ 52.8 million, shifts apparel exporters at global of the Ministry is of roughly 100 members of the Optitex team to EFI, level. “As of now matter was sanctioning 24 new Textile where they will work under EFI Optitex’s General not in our notice but we will Parks under the Scheme for Manager Asaf Landau for the advancement of the see the issue now,” he said. Integrated Textile Parks with textile sector and further setting new standards for Besides this, the Minister a potential investment of on-time, on-demand manufacturing and automation urged the apparel industry US $ 661 million (Rs. 4,500 in the textile sector. to set up factories in the crore) and employment North East region of the for 66,000 people.

16 StitchWorld  JULY 2016  www.apparelresources.com 17 StitchWorld News Track

India: Kitex to launch new infant wear brand in US India: Abof to provide on-spot itex Garment Ltd., the world by increasing both efforts to launch the brand alterations KKerala (India)-based online and offline presence, Little Star by October this infant wear and textile along with their technological year. The company has manufacturer is geared up capabilities. As an indication also entered into a license bof, owned by to launch its brand ‘Little of the renewed consumer agreement with Lamaze Aditya Birla A Star’ in the US market, with sentiment in the US, there has International, USA, for Group, is planning to an aim to sell cotton infant been an 8 per cent increase manufacturing and suppling launch a value adding wear and simultaneously in the specialty infant apparel of infant garments in the US service – starting with expand its reach in the US by segment in the past year. and Canada markets. Bangalore and parts of forward integration. Hyderabad – to offer Kitex has been a major Established in 1992, the on-spot alterations to its Sabu M Jacob, Chairman and supplier to global brands such company exports its products customers by partnering Managing Director of Kitex as Carters, Gerber, Mothercare, to the US and European with tailoring start-ups. states that the objective is Jockey & Toys R Us, and to markets, with per day textile to become the No. 1 infant further increase its footprint, capacity of 50 tonnes and The company deduced apparel manufacturer in the the manufacturer is making 2.70 units of infant wear. that almost 1/5th of the returns on their products are due to fitting and size issues, urging the management to come India: NIFT should focus on Industrial Engineering, says up with additional Dinesh Kumar Sharma, AGM – Operation, Shahi Exports policies and services as a back-up solution. IFT Jodhpur (India) By this initiative, the Nrecently organized a company aims to reduce Convocation-cum-Graduation returns and increase Programme at which 30 customer satisfaction students from B.F. Tech for alteration. (2012-16 session) and 15 The decision of students from MFM (2014- providing on-spot 16 session) were awarded alterations has been with degrees. Dinesh Kumar commissioned after Sharma, AGM – Operation, a 2-month pilot Shahi Exports, Faridabad programme in Bangalore was the Chief Guest at the (L-R) Ruchika Dawar, Assistant Professor, NIFT Jodhpur; Prof. (Dr.) Raghuram and will then be event, which was hosted by Jayaraman, Director – NIFT Jodhpur; Dinesh Kumar Sharma, AGM – Operation, expanded to Pune, Prof. Dr. Raghuram Jayaraman, Shahi Exports, Faridabad; and Ankur Saxena, Assistant Professor, NIFT Jodhpur at the NIFT Jodhpur Convocation-cum-Graduation Programme Mumbai and Delhi-NCR Director – NIFT, Jodhpur. regions. The company Rohit Kumar Singh, Aashna already provides other Jamal, Sanya Bogra, Vidhi While speaking at the event, same, and the company got value adding services Kamra (MFM), Saumya Shilpi, Dinesh highlighted what fantastic results.” Sharma also such as online 3-D trial Shyamlee Shreya, Sunanda apparel industry really emphasized that students rooms and on-spot Ghorai, Ankur Kumar, expects from NIFT students… should understand and apply exchanges in case of any Adhishesh and Shyamlee “In apparel industry there the concept of Industrial size related issue. Shryea (B.F. Tech) were awarded is lot of scope for young Engineering (IE) for enhanced generation and they should productivity as without In Bangalore, Abof for best projects. Ridhi Malviya productivity we can’t survive is partnering with was selected as Student of the not think otherwise. There in the market. “IE should be YourTailor.in, an online Year, while NIFT Extraordinary are many examples where covered as a ‘core’ subject in the tailoring service in the Service Award was won by a minor change in methods courses of NIFT,” he concluded. city and likewise will Padmini Shekhwat. NIFT gave bigger results,” he said collaborate with similar Meritorious Award in MFM and also shared one example, NIFT (National Institute of start-ups in other cities was won by Vishi Kamra and “Shahi Exports had a problem Fashion Technology) has 15 to power it through Tanupriya, NIFT Meritorious in thread joint and thread centres across India and is the a vendor-partner Award in B.F. Tech was given breakage in denim styles and most famous fashion institute relationship. to Shaymlee Shreya and we did Bobbin Project with of the country under Ministry Riddhi Malviya. two NIFT students on the of Textiles002E

18 StitchWorld  JULY 2016  www.apparelresources.com News Track

France: YuniquePLM propels creativity & efficiency for retail giant Carrefour Italy: Epson to acquire arrefour, the second textile printer Clargest retail chain in the world, has selected manufacturer YuniquePLM to manage its pson Italia SpA is large amounts of data and to reportedly going unify its design and product E to completely acquire development processes. Fratelli Robustelli, Carrefour is a French multi- one of the leading national retailer that operates more than 12,500 retail manufacturers of operations to offer a wide textile printers. range of products, from The reports claim apparel goods to kitchen Carrefour looked to YuniquePLM for its strong integration with design tools and that while the entry appliances and fresh produce its ability to deeply integrate with their assortment tools of Robustelli into the in over 35 countries in Epson Group will allow Asia, Africa, Europe and the palettes, images and, more productivity with YuniquePLM it to expand its reach to Middle East. directly in their design as they will communicate more customers around program of choice, including product specifications, The retailer looked to the globe, this strategic Adobe® Illustrator®. Updates technical drawings, tech YuniquePLM for its strong move will also back Epson can be seen immediately packs and issue sample integration with design to take advantage of within YuniquePLM. This requests. YuniquePLM will act tools and its ability to Robustelli’s capability integration reduces cycle time as a fulcrum for Tex’s global deeply integrate with their in accelerating the and fosters the adoption of supply chain. assortment tools. Commenting development of digital the full development chain, on the collaboration, Bill Gerber Technology has been inkjet textile printers while streamlining the entire Brewster, Vice President and selected for their in-depth with a wider line-up process of delivering new General Manager of Enterprise knowledge of the French of products, through products to market.” SW Solutions said, “With business landscape, combined joint R&D. According to a Carrefour with their expertise in YuniquePLM’s Design Suite, Sunao Murata, COO – representative, they look integrating the tools used Carrefour’s technical designers Professional Printing forward to increase in by our creative teams, the will be able to create, access Operations Division, creativity, quality and representative added. and modify styles, colour Epson averred, “The market for high-quality digital textile printing is expanding, and I Vietnam: Better Work Vietnam launches ‘Labour Law App’ believe that formalizing our collaboration with etter Work Vietnam, other interesting features (in sourcing interests, the Labour Robustelli in this way Bpart of the Better Work English and Vietnamese), both Code App will assist in day- puts us in a great place global programme which for garment factory personnel to-day labour related issues in to meet the needs of is a unique partnership and industry partners. the factories. the growing numbers between the International Inclusive of a “Frequently With its user-friendly interface of customers who are Labor Organization (ILO) and Asked Questions” section and simple navigation, the app seeking to leverage the the International Finance featuring the most commonly allows the user to search key advantages of advanced Corporation (IFC), has asked legal questions by information and skip between digital solutions that launched a mobile application factories, the app also contains chapters of the Labour Code, will help drive their with the purpose of improving an interactive quiz to test while bookmarking and businesses forward.” labour standards and users’ knowledge of the law sharing articles of interest. Additionally, Epson will enterprise performance in the related to the industry. The app will also inform the use its already established apparel industry. Expected to serve as a user of any training sessions sales and service network The app offers the latest valuable reference for the that have been scheduled and to make Monna Lisa – content from the fourth factory managers, HR offices are upcoming with general registered trademark edition of Better Work’s Labour and compliance staff, as well updates from the Better of Robustelli. Law Guide and a range of as buyers and vendors with Work Organization.

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Ethiopia & Myanmar The next ‘powerhouse(s)’ of sourcing

The sourcing options for apparel retailers established their presence in Ethiopia are have never been so diverse. Even as the building capacities which will translate to fraternity makes peace with China’s mounting exponential growth. Despite the fact that wages, the pace at which Bangladesh has there is no comparison between Ethiopia developed and Vietnam is being developed is and Myanmar, Ethiopia is considered the enthralling. The wage bomb is ticking anyway first choice destination to set up a factory. at these locations as well, and since the Myanmar, on the other hand, starts with economy in both the countries is improving, a minimum wage which is lower than that the opportunities in other sectors will soon of Bangladesh and thus wins over the start weaning away the workforce from buyers. Producing high-tech sportswear, apparel factories to other emerging sectors. shirts, and formal suits, Myanmar Simultaneously, Ethiopia and Myanmar have exports 75 per cent of its produce mainly emerged as the next two hot and actively to Japan and Korea as the US and EU pursued manufacturing destinations. withdrew the trade benefits when Ethiopia is said to be a place where one can Myanmar was gripped by military regime. go for fibre to factory, and cheap plentiful Thus, a country that has worked slowly labour at US $ 52 a month, inexpensive and steadily to build a sizable US $ 1.4 power, and a Free Trade Agreement with US billion export turnover for the last year augment the country’s business case. Top it relying significantly on these markets, up with vast land ripe for cultivation of cotton is potentially an apparel manufacturing which will serve as a source of raw material. powerhouse. If the ongoing talks with the The biggest challenges that remain however EU and the US manifest in Myanmar’s are the production inefficiencies and lack of a favour, the status quo will be altered competent local sourcing network rather than significantly for even higher export figures. the widespread perception of being a corrupt The challenge that must not be ignored is nation and not being as dexterous as Asians. the lacklustre banking infrastructure which Though the export is a mere US $ 60 restricts the loan sanctioing authorities of million at present, the companies that have foreign banks in the country.

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

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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.

Ethiopia: A Magnet for Textile Investment and Garment Sourcing Jozef De Coster, an analyst from Belgium, writes…

n 2014 and 2015, the early birds textile and apparel companies are Ayka Addis, currently the biggest of Foreign Direct Investment and SMEs of 500-1,000 workers who are textile group in Ethiopia, is eagerly Igarment sourcing in Ethiopia were able to handle small-run orders for working on a plan to relocate some joined by a group of foreign investors European mid-segmented fashion 20 Turkish textile and garment (mainly from Turkey, India and China) retailers. Sweden’s H&M was a companies to Ethiopia. Saygin Dima and of Western buyers, which has sourcing pioneer in Ethiopia. seems bullish about its future in upscaled the pace of developments, Ethiopia. The management thinks prompting the Government and the Early birds that within two years a turnover textile and garment sector in Ethiopia The vertically integrated Turkish of US $ 150 million per annum is to set very ambitious targets to textile companies Ayka Addis within reach. Saygin Dima wants to continue expanding rapidly. and Saygin Dima, both of which extend its activities towards garment In 2014-15, Ethiopian exports of entered Ethiopia in 2008, are the manufacturing which will increase yarns, grey fabric, garments and two key FDI pioneers in the sector. current employment of 1,200 people traditional handloom products to around 3,000 people. together totalled a modest export Clothing retailers and brands from amount of just over US $ 65 million. AREA-WISE DISTRIBUTION Europe and the US moved in slowly The target for 2020 is to export US $ 1 OF INTERNATIONAL APPAREL and cautiously. H&M started test billion of textiles and garments. MANUFACTURERS IN ETHIOPIA runs in three Ethiopian factories in The sector, which now represents Company Name Location Country 2012, and then relied partially on the 6 per cent of the country’s total (from) Swedish taxpayers to upgrade its export value, wants to achieve a PVH Corp. Hawassa USA Ethiopian suppliers via a partnership share of 22 per cent in 2020. Raymond Group Hawassa India with Swedfund which reportedly The Ethiopian Textile Industry Hirdaramani Group Hawassa Sri Lanka injected US $ 8.6 million in 'the development of a responsible textile Development Institute (ETIDI) Arvind Limited Hawassa India was embarrassed when it had to industry in Ethiopia'. The American DBL Group Tigray Bangladesh announce that textile exports for the clothing group Phillips-Van Heusen first six months of Ethiopian fiscal Jiangsu Sunshine Adama China (PVH), which owns brands such as Kanoria Africa Bishoftu (Debre India year 2015-16 were lagging behind Textiles Zeit) Calvin Klein and Tommy Hilfiger, the planned target. The target was to strategically helped in building an Shaoxing Mina Sebeta, Oromia China obtain US $ 60 million exports, while Textile East African supply chain by bringing only US $ 41.1 million was achieved, Calzedonia Tigray Italy in some experienced Asian investors meeting less than 70 per cent of Velocity Apparel Plc Tigray UAE in Kenya and Ethiopia. the plan. Ayka Addis Textile Bole Kefle Turkey and Investment Ketema Kebele The place to be However, optimism continues to Group reign since companies such as H&M, In spite of some striking flaws in C&H Garments Bole Lemi China Tesco, Gap, Belk, and Walmart, among Industrial Zone Ethiopia’s politics, economy and others, are now sourcing textile Korea Zinc Bole Lemi Korea infrastructure, as far as the production products from Ethiopia. Europe is Industrial Zone of garments for the Western markets Ethiopia’s main export market for Shints ETP Bole Lemi N/A is concerned, there’s a feeling that Garment Plc Industrial Zone garments (with around 60 per cent the country has a great future. of the total export). Half of Ethiopian Vanity Fair Hawassa N/A Many sourcing specialists who have

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FACTORS WORKING IN FAVOUR OF ETHIOPIA Cheap Labour & Educated importing spare parts duty-free or supplies to an exporter, is Workforce: Abundant availability for five years from the date of exempted from income tax for of labour at US $ 45 per month commissioning of a project. additional 2 years. for a skilled labour as well as  Investor can also buy capital Export Incentives: significant number of educated goods or construction  No export tax is levied on textile youth for mid-management materials tax free from local and garment export products positions, which presents an ideal manufacturing industries. opportunity for labour-intensive of Ethiopia.  Investment in capital goods garment manufacturing.  To safeguard domestic textiles imported without the payment of industry, Government has Bulk interest rate: The minimum custom duties and other taxes can imposed 35 per cent duties capital required for a foreign be transferred to another investor investment is US $ 200,000 per enjoying similar privileges. on imported fabric used for domestic consumption. project; the same is US $ 150,000 per Income Tax Exemptions: project if the project is in partnership  Duty drawback schemes  All investments in textiles and with domestic investor. Up to 70 per offer 100 per cent exemption textile products sector are cent of the total project cost may (drawn back at the time of exempted from income tax for be funded by banks @ 8.5 per cent exports) from the payment a period of 6 years depending interest rate and balance is expected of customs duties and other on the geographical region of to be invested by the investor. taxes levied on imported and the setup. Customs Benefits: locally purchased raw materials  Investment in designated regions used in the production of  100 per cent exemption from the attracts special exemption export goods. payment of customs duties and of 30 per cent in income tax other taxes levied on imports of all for three consecutive years  Provisions for Bonded capital goods. even after the expiry of the Warehouses whereby exporters are licensed to operate such  Exemption from the payment of income tax exemption. warehouses in importing of raw customs duties on import of spare  Income tax exemption of 50 per materials duty-free. parts worth up to 15 per cent of cent is also given in case of factory the total value of the imported expansion in volume or adding  Exporters who don’t enjoy facility investment capital goods, new product or introducing a new of bonded warehouse are given provided that the goods are also service provided that it is 100 per vouchers with monetary values. exempted from the custom duty. cent of an existing enterprise. Such vouchers can be used in lieu  Investor granted with a customs  Investor, who exports 60 per of duties and taxes payable on duty exemption allowed cent of his products, or services, imported raw materials.

explored the global opportunities free entrance of Ethiopian textile reportedly vary from US $ 45 to 60/ agree that today Ethiopia is the place products to the US-market under month) are, however, significantly to be. The country is currently the AGOA and to the EU-market under offset by low labour productivity and No. 1 sourcing location, according to the Everything But Arms system, the high personnel rotation. The extension the apparel sourcing company Duty strong engagement of the Ethiopian of AGOA for 10 years, in June 2015, Free Sourcing Inc. Also the Indian Government as formulated in the was of course of crucial importance entrepreneur Sidarth Sinha, the Second Growth and Transformation as well for foreign textile and Founder and Owner of Vogue and Plan (2015-16 to 2019-20) and garment manufacturing groups as for Velocity Group, who is in process demonstrated by the establishment American buyers to bet on Ethiopia to create a ‘garment township’ in of the Ethiopian Textile Industry for the long-term. Ethiopia, believes that no other Development Institute (ETIDI) and Ethiopia is one of the few countries country can presently beat Ethiopia. the industrial area Bole Lemi, both in which is utilizing the duty-free and The principal arguments to move into Addis Ababa, and of course the very quota-free export benefits under Ethiopia are well known: the abundant competitive labour cost. AGOA to the fullest, and where availability (at least theoretically) The low Ethiopian labour cost 95 per cent of the garment imports of cotton and hydro-energy, the (average monthly wages for operators are open to the ‘third country’ fabric

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BRIEF CASE: ETHIOPIA Strengths Weaknesses  Abundant availability (at least  Being landlocked, the country is theoretically) of cotton and hydro-energy dependent on its neighbouring country Djibouti for its sea imports and exports  Free entrance of Ethiopian textile Ethiopia products to the US market under  Missing raw material suppliers AGOA and to the EU market under the  Lack of technical knowhow might limit the Everything But Arms System expansions and productivity  Competitive labour cost Addis Ababa (16) Bishoftu (1)  Efforts being made by regional Governments to expedite foreign investments Oromia (1)

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

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rule of origin, which allows garment were initially destined to the US, manufacturing woven and knitted manufacturers to utilize raw materials but at the end of 2015 negotiations clothing in the Bole Lemi Industrial from any origin for export purpose. In were underway with potential Park in Addis in October 2014. In addition to this, preferential tariff rates European customers like H&M and the course of 2016, employment is have provided Ethiopia the freedom Benetton. Besides, Arvind was said to planned to increase from 400 to more to export to the Common Market for be working on an integrated supply than 2,500 workers. Also Shin Textile Eastern and Southern Africa (COMESA) chain in Ethiopia, starting from cotton Solutions of South Korea moved agreement, indicating that majority cultivation to spinning and weaving. into the factory park at Bole Lemi in of ‘Made in Ethiopia’ products are However, beating Arvind to the pole, October 2014, with the intention to eligible to enter into these markets Kanoria Africa Textiles, a subsidiary of gradually employ 3,000 people. which are quota- and duty-free. the Indian group Kanoria Chemicals Foundation Garment Pvt. Ltd. Besides, availability of land on a & Industries, on 24 October 2015 (Jinadasa Group), from Sri Lanka, is leasehold basis of up to 99 years inaugurated a brand new denim currently investing in Kenya where it depending on the geographical fabric factory – the first in Ethiopia – will reportedly put 6,600 workers on region, type of investment and class with an annual capacity of 12 million the payroll (3,600 in Nairobi and 3,000 of land, is also aiding the country’s metres in Bishoftu, 37 kms from Addis. in Mombasa). However, it also has firm growth in the apparel sector. In order The factory, started with less than intention to invest in Ethiopia, where to expedite foreign investments, 500 workers, has plans to extend a factory employing 3,000 workers is regional Governments are putting activities to jeans manufacturing. 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 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 million in a factory (garments, knitting, dyeing) in Mekele. The factory should be operational in the second half of efforts and are able to allocate Kanoria will ultimately employ some 2016. Initial employment is estimated land to investors within 60 days of 2,000 people in Ethiopia. According at 5,000-6,000 workers. Among DBL’s receiving their applications. to Ethiopian media, India’s Raymond customers are H&M, Esprit, Puma, Ltd., the world’s largest integrated and Walmart. Mostly Asian manufacturer of worsted fabric, has investments concluded an agreement with the The most ambitious investment Ethiopian Investment Commission project in Mekele is that of the Indian In October 2015, the Indorama to invest US $ 100 million in Ethiopia. entrepreneur Sidarth Singa. His Group, the world's largest integrated The East African country hopes that company Velocity intends to keep its manufacturer of polyester, was said existing five factories in Egypt at work, Raymond’s engagement in Ethiopia to be discussing with the Ethiopian with around 4,000 employees, but it will attract other investors. Government the setting up of a will expand forcefully in Ethiopia. A polyester plant in the country. This The vertically integrated Taiwanese new garment factory in Mekele with rumour has not yet been confirmed. group New Wide Garments, which is 3,000 workers will mainly manufacture In March 2015, the Indian denim giant already employing more than 1,000 knits and denim articles. Velocity plans Arvind started manufacturing denim people in a knitwear factory in Addis, to ultimately employ some 10,000 bottoms, 12,000 pcs/day in the textile plans to ultimately employ 5,000 people in Ethiopia. Customers of industrial zone of Bole Lemi (near people in three factories in Ethiopia. Velocity are brands like Levi's, Vanity the airport of Addis Ababa). Exports The Dubai-based Atraco Group started Fair, Target, Zara, and H&M.

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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.

Can Myanmar carve a niche for itself?

ccording to the Myanmar improve the country’s export capacity. Plus status in the coming months. With Garment Manufacturers Under the NES, seven key sectors were enhanced prospects of the US further AAssociation (MGMA), Burmese identified to have great potential relaxing sanctions and even granting garment exports jumped to US $ to drive economic development GSP benefits, the MGMA anticipates 1.46 billion in 2015, accounting for and employment generation, that Myanmar’s garment sector will 10 per cent of the country’s export which included the textiles and experience exponential growth in years revenues, and the country is now garment industries. ahead, creating around 1.5 million heading to an ambitious target new jobs from its current level of of US $ 12 billion by 2020. On the Burmese foreign approximately 250,000 and generating other hand Ethiopias, in FY 2014-15, relations, Burmese US $ 12 billion in export value by 2020. exports of yarns, grey fabric, garments At the same time, Myanmar is also a and traditional handloom products advantages… WTO member and its Most Favoured together generated US $ 60 million, Its 2014 exports were majorly destined Nation (MFN) status allows it to which is merely a fraction of Myanmar’s to locations such as Japan (38%) export at low tariff rates to other earnings from the sector. The flurry and Korea (31%), out of which Japan member countries. Another factor of orders and investments however offers GSP privileges to Myanmar. The that is being designed to play to has been undoubtedly stronger for exports to EU contributed to the total Myanmar’s advantage is the position the latter. a 23% share. What could possibly cost Myanmar by a huge fraction is a lack it enjoys in the ASEAN. Myanmar is On the surface of it, the scales appear of formidable trade arrangements part of the China-ASEAN Free Trade to be tilted in favour of Ethiopia with key market as compared to its Area (CAFTA), which was formally and few other African Nations. But competitors. Ethiopia enjoys AGOA established in 2010, removing before any conclusions are drawn, extension for the coming decade, import duties on a great number Myanmar’s landscape is bubbling with and Vietnamese TPP and EU-FTA is a of tariff lines between China and developments that must be taken genuine threat. The Union of Myanmar ASEAN countries – a magnificent note of. Federation of Chambers of Commerce opportunity for Myanmar to become The intent to pave however is hopeful that Myanmar and a new manufacturing powerhouse. the US will resume discussion on GSP The CAFTA Agreement went into the path Almost immediately after the military rule concluded in Myanmar, garment Permitted Garment Manufacturing Enterprises by Myanmar manufacturing was amongst the Investment Commission in 2016 (till June) sectors highlighted by the authorities Name of Company Location Country of Origin as a key area of focus and the focus Glamour Garment Company Limited Yangon Region, Hlaing Thar Yar Township, Myanmar has only grown sharper with time. Industrial Zone - 5 The significance of the garment Panda Textile Company Limited Mandalay Region, Sintkaing Township, Myanmar manufacturing sector grew more Paleik Town prominent when the Myanmar Roo Hsing Garment Manufacturing Yangon Region, Hlaing Thar Yar Township, Taiwan Government launched its first National Company Limited* Industrial Zone Export Strategy (NES) in March 2015, Toya Myanmar Co. Ltd. * Yangon Region, Hmawbi Township ------outlining a five-year plan that aimed to *Fully Foreign Funded Investments

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BRIEF CASE: MYANMAR Strengths Weaknesses  The latest National Export Strategy (NES) identifies textiles  Missing raw material suppliers and garment sector as a key sector which will drive economic  Under-developed banking sector development and employment generation  No management workforce capacity  Myanmar is also a WTO member and its Most Favoured Nation building exercise underway (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 Myanmar

Bago (15)

Pathein (8) Yangon (288)

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

upgradation in 2015 to raise bilateral product categories like outerwear, and the rights of both producers and trade to US $ 1,000 billion (from Ethiopia, and similar to Bangladesh, workers have gained traction. Highlight about US $ 480 billion in 2014) and will build its basics expertise. activities in this strain will be two road ASEAN-bound FDI to some US $ 150 sections on the Yangon-Mandalay billion by 2020. Such an increase Simplifying procedures highway being upgraded as a pilot in trade of goods and services as & developing project. The new Construction Ministry well as economic and technological has also undertaken a project to cooperation (i.e. technology transfer) infrastructure build low-cost housing units that cost is expected to give an extra push Myanmar has announced plans less than K10 million (US $ 8395) in to Myanmar’s garment industry in to introduce an electronic import Naypyidaw, the capital of Myanmar. the mid-to-long term, including export clearance system named In particular, the NES acknowledged relocation of China-based garment Myanmar Automatic Cargo Clearance the need for the garment industry manufacturers to the country. System (MACCS) and Myanmar to move up the value chain, advising Customs Intelligence System (MCIS) The Chinese relocations can have it to move towards operations on a by November 2016 in Yangon area, interesting manifestations because “Free-On-Board” (FOB) basis from while Ethiopia has received including international ports, Yangon its current CMP system as a longer- interest from Indian and Sri Lankan Airport International Cargo Terminal term development goal. In the wake manufacturers predominantly, and and Thilawa Special Economic Zone. of the NES launch, the MGMA has Vietnamese market witnessed few Under the recently announced NES, arranged workshops to help factories Chinese relocations, Myanmar can the agenda of development of export learn to handle “FOB” operations, be expected to receive the product infrastructure (e.g. deep sea ports), with topics including production prowess from China (The Myanmar production locations (e.g. sector- planning, merchandising, logistics, Investment Commission (MIC) specific economic zones), country communications and audits. allows 100 per cent FDI in setting quality standards in compliance with Reducing trade barriers for traders up textile and garment factories in international standards, as well as and manufacturers based in Myanmar, the country). Vietnam is working upgrading of the existing regulatory the Government introduced a new, towards reinforcing its niche in and legal framework to better protect fully online export and import

26 StitchWorld  JULY 2016  www.apparelresources.com 27 StitchWorld Hub Review

Comparison of investment- Area-Wise Distribution of International related costs in Ethiopia Apparel Manufacturers In Myanmar vis-à-vis Myanmar S. No. Name of companies Location Country of Origin Attribute/ Ethiopia Myanmar Country 1 Chai Moon Garment Pathein Township of Ayeyawady region and Malaysia Dagon Myothit (East) Industrial Zone Average Wage 52 85 (US $ per month) 2 Honeys Garment Industry Ltd. Yangon Industrial Zone, Mingalardon, Yangon Japan Industrial Estate NA Foreign 3 World Jin Garment Thardukan Industrial Zone, Shwe Pyi Thar, Korea (Land) purchase companies are Yangon rate not permitted to 4 Shin Sung Garments Bago Korea (US $ per sq. m.) purchase land 5 Myanmar Solamoda Shwe Than Lwin Industrial Zone, Hlaing Tha Yar China Industrial estate 4 0.39 Garments Group rent (US $ per sq. m. per month) 6 PT. Sungintex Shwe Than Lwin Industrial Zone, Hlaing Tha Yar Indonesia Electricity rate for Rate per Rate per business use kWh: 0.04 kWh: 0.12 (US $ per kWh) Basic monthly Nil Nil licensing system in early June 2016. yet to build a vertically integrated charge for Companies can now print out an ecosystem locally. Given the electricity (US $) export and import licenses through ambitious target of US $ 12 billion Water rate for Rate per Rate per business use cu.m: 0.31 cu.m. 0.88 the Myanmar TradeNet website after by 2020, it will take a major effort for (US $ per cu. m.) filling out the application form and Myanmar to overcome this barrier Basic monthly 17.82 Nil paying the licensing fee through an within such a short period of time. charge for water e-payment system. At the same time, lack of funding (US $) channels is a gnawing concern. In Gas rate for NA Rate per 1,000 business use cu. Proactively addressing Myanmar, the garment industry (US $) ft. : 8.61 the labour concerns consists mostly of SMEs that do Basic monthly NA Nil not have the necessary financial charge for gas Myanmar has actively taken notes (US $) resources or knowledge to secure from the global apparel manufacturing a loan from the financial sector and Corporate income 35 26 scene and worked proactively on giving tax rate (%) the country’s banking sector is vastly greater rights to workers. Country’s first Personal income 0-35 1-20 under-developed. As of May 2016, tax rate (highest Labour Organisation Law was brought only 13 foreign banks were permitted rate, in %) out in 2011. MGMA also ratified a to operate in Myanmar. These banks Value-added tax 15 5 Code of Conduct for its member (VAT) (standard are allowed to offer a narrow range rate in %) companies as a guide and framework of services and although they are Currency Ethiopian Birr Kyat 1165 for responsible business practices in the allowed to provide credit to local Exchange Rate (ETB) 21.92 country’s garment sector. (vs US $ 1) banks and financial institutions as GDP 61.54 64.87 well as foreign companies, they are (US $ billion) The dampeners not allowed to participate in retail Population 54.3 101.8 Like most of the existing and banking operations or engage in (in million) upcoming hubs, even Myanmar is direct lending in local currency. Literacy Rate 49.1 95.13 (in %) No. of apparel 300 >200 and textiles units Employment 10,000 20,000 in apparel and textile units Total exports 0.4 1.4 (RMG, in US $ billion) Number of 0 (landlocked) 9 major ports Trade tie-ups China, Sudan, ASEAN (AFTA), Common ASEAN JAPAN Market for Comprehensive Eastern and Economic Southern Africa Partnership (COMESA), (AJCEP), ASEAN Africa free trade Korea, ASEAN- zone, AGOA Australia-New Zealand FTA, ASEAN-China, Myanmar has actively taken notes from the global apparel manufacturing scene and worked ASEAN-India proactively on giving greater rights to workers

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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…

Science of Apparel Manufacturing: Design Thinking

he success of training Role of the education is to lies in the methodology. bring in conformity, so that all TIn a garment industry, of them can do the same thing. most training schedules have In the industrial production a very short span – of one day, environment, conformity is the so it is important to make a key, but with shifting thought lasting impact through proper processes, brought on by methodology. In the course of overdrive of knowledge, getting research, it was found that religion conformity is a challenge. Every is very powerful in teaching a day, labour is exposed to new certain perception and the only beliefs, changes and thinking. In thing which has made religion such case, if there is no correct so powerful today is repetition. methodology to keep them in You say the same thing so many the workplace, or motivate them times that you start believing it. correctly to work in the garment In industrial behaviour, it would industry, then it will be very imply observation, imitation difficult for Bangladesh to retain and repetition. the low-cost environment that it In garment manufacturing, thrives on. nobody is doing a new thing Also migration and worker everyday, yet whenever we go to attrition rate is very high in the shopfloor we see work piling Bangladesh and India. Even after up and operators continuously almost 36 years, since Bangladesh shunting around. Humans by got into garment manufacturing, nature are divergent, and no you will not find any elder person human being is the same. The in the system. They move out very objective of education is to put fast, as the work is at the cost of Rahman Hasibur, MD, Solstice them in a convergent situation. their lives. It is very difficult to put

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your attention at the needle in mindset that’s what they how work is broken down to Religion is for 8 hours a day, it is very need to have. The philosophy elements to make it easier. very powerful stressful. Women always feel is simple, stitching involves We are always teaching them giddy. They have children one single needle and it the wrong way. There is no in teaching to feed, malnutrition and never shifts, and it is only ‘correct book’ or ‘master’ certain a lot of social issues. They the way of handling which is to teach them this work. perceptions cannot sleep properly at shifting. If you have a set of My job is for a day only and the night and there is no proper guides, even if you try, you and the process they go environment for dwelling. will not be able to push the through is focused on – ‘how foremost is There are so many things fabric in any other way. to go through one single the value that are not taken care of. Even when turning the fabric perforation correctly’ and driven from On the other hand, they are in a circular dimension, the rest they will be able to do by repetitions, themselves. I also introduce bound to do this arduous operator need not care about doing the same work for survival. There is lot the circular motion, because workaids, if needed. The of pressure to perform. Not the machine has the guide basic thing is knowledge to thing over and many realize that there are to stop the edges and the understand the ‘kinesthetic’ over again. many ways and processes to needle is routinely piercing between left hand, right In industrial hand and right leg. They are ease their efforts. This can be right after one centimetre behaviour, it done by simply shifting their and this is one single process. not given a proper training for such things and thus it mindset or providing them The operator is stitching dot would imply becomes stressful for them. with proper set of knowledge by dot and only adding dots observation, Whenever a good driver is tools. Then they will be happy per inches, nothing more. So imitation and driving his car, he is driving it to work and also give you the even if stitching an armhole, effortlessly. But, car driving is repetition..., best stress-free productivity. he/she is attaching 100 stressful if you do not know stitches – one after another. an ideal tool to your controls properly. Changing the So this is basically like a teach sewing worker’s mindset process of making a garland, Every factory owner feels operation. one flower added one they have a different solution; to enjoy the work after the other without any however, it is not so. Every they unanimously change in action. We are not worker will have the same find stressful... giving them this silly lesson. solution because the process Everybody is asking them to is same. At the end of the day, Most of the workers in our hit the target and stitch as a it is stitching and everybody industry are uneducated whole process, putting strain is performing the same thing. and if you give them a set of on them. As mentioned before, no lectures and sheets to fill up needles are shifting; it is only and practice, they won’t do Breaking down the the fabric which is shifting it. There is only one single process into small and done by an operator with methodology that can work the help of his two hands. So for them...: teaching them fragments… they have to know how to to do the work rightly. They In our society, we have a use their hands. We are trying are only doing one task – wrong way of judging things. to teach them how to see stitching, and they are taking We say ‘practice makes a carefully and in a proper way it as a marathon, which is man perfect’. I don’t buy so that they need not put a not the case; it is a series of that... perfect practice brings lot of stress. Garment workers sprints. So you only stitch in perfection, but we have are always concentrating at one single perforation at a never taught them the way the needle, as such putting time and this is the change of doing things correctly, huge stress on their eyes.

www.apparelresources.com  JULY 2016  StitchWorld 31 Tech Talk

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?

‘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. 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 The repetition will take the excellence to the next level, because there is Contrary to a popular belief, way. Your eyes are always in on what food they should eat a neurological angle to it is not your brain or any action, they are giving you and how to lead a better life. it. Neural connectivity is limb of your body, but the directions. Every calculation That is all part of a one-day popularly explained with human eye which ‘eats up’ that you are making is with training schedule... Nobody the phrase – neurons that fire together, wire together. the maximum energy of your the help of your eyes. You is going to give you 3 days’ Each neuron is connected to body, around 20%. Human are not giving any break time... Nobody is caring the other through electrical eyes can process 57 GB of to your eyes… In China, about the amount of energy conductivity between these data in one second. A critical they teach children how to they are putting in, and at the dendrites, which are the question to ask is when the massage their eyes. There end of the day this is energy nerve endings. Every time a workers go back home, are are six steps to eye massage, business. The human system certain action is repeated, they really replenishing the but in our system nobody is all about energy. You are the connection between food they need for their knows that there is such a taking their energy, building the two neurons grows eyes? No...! Because they do thing called ‘eye massage’ the nation, talking big thicker. This thickening not know that it is their eyes and that the garment workers things, but not caring for our facilitates faster conduction which need replenishment. should compulsorily have this people..., which is sad. between neurons upon activity after every 2-3 hours Everyday, their visual cortex more repetition. Soon to de-stress themselves. Start slow to is being sapped; on the top build perfection electricity passes through of it, malnutrition is a major We have a research library the neurons so rapidly that concern today. So if you need where we are creating these and speed... the process/action is picked to improve the garment modules with the help of To de-stress the job, we up autonomously by limbs. worker’s health, serve him animators. We are making advocate the sequence So you have to have your food which helps him deal visual presentations. We just of Observation, Imitation neurons fired together. with eye strain. You have to show them a 15-minute video and Repetition. In the era Instead, right at the give them some ‘brain food’. on how they have to do these of ‘pace’, the ‘Observation’ beginning the operators are I don’t think people are aware things. And afterwards we and ‘Imitation’ portion pushed for speed and thus of this, or are thinking in this will give them a little speech is foregone for speedy they are unable to actually

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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 with the workers, you are to the critical lines and the – they depend on the line lessons they should addressing them directly. other lines are suffering. The chiefs whose performance be taking. There are lots of IEs in the owner is very happy that a depends on where he You basically tell the system, but they do not certain line is efficient, so is found his first job. Without operators that they are in actually understand the the buyer. But overall they operator training, if we just a stressful environment, human potential. They cannot are not achieving efficiency. re-engineer the layouts and and that these are the empathize. They are very We teach them process systems, then 15 per cent small interventions which robotic. The efficiency in techniques. People are using efficiency could be achieved; if followed will help driving lies in how slow you rollers, jigs, pulleys, but there but with operators training (7 them de-stress. It doesn’t can go; it is never how fast you are better ways of managing days) – 30 per cent efficiency cost the management can go. There may be a better things. In most of the enhancement can be anything but by doing this, approach by re-engineering cases, efficiencies plummet achieved, and this is proven. entrepreneurs are doing a than the traditional SMV suddenly. Mostly, every factory We have taken the daily service for themselves, and system. To balance a line, has a customized system. The output of 45 machines from by communicating that you the production manager is owners don’t know much 900 pieces to 1,200 pieces have struck the right chord pulling all the good workers about the production process through interventions.

www.apparelresources.com  JULY 2016  StitchWorld 33 Company Review

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.

Sai-Tex: Pioneering the Vietnamese Denim Wave

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

he remarkable journey of manifests in providing value to the Sai-Tex in the last decade was The entire factory’s buyers with functionality-oriented Tsteadfastly focused on acing performance can be product designs and running every possible aspect – product, accessed by Ifthikar watertight operations. infrastructure, machinery, processes, at any given time and sustainability. Ifthikar, like all The Product using the G-Pro denim enthusiasts, is driven by an In denim, the rich possibilities infectious passion for denim. Being RFID-based real that can be brought out with an a through and through operations time data collection innovative concoction of chemicals, professional, Ifthikar’s passion systems integrated with scrappers, laser beams, pumice surpasses the aesthetics and FastReact ERP. stones, etc. are no secret. “The product development aspect, and possibilities are so myriad that

34 StitchWorld  JULY 2016  www.apparelresources.com Company Review

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

sometimes one comes up with a bottomwear can get. “Value is added fabulous wash detail but forgets nonetheless in three ways – with to keep track of the ingredients the raw materials used, comfort and processes that went into it,” provided to the wearer through jibes Ifthikar. Speaking of wash smallest of design interventions, developments, the lab at Sai- and the fact that the products are Tex, equipped with almost every being manufactured at our plant,” technology available in the market he inputs. Ifthikar elaborates on the today, is a designer’s delight. The comfort provided to the wearer with pulsating design vibe is palpable a G-Star (one of the most renowned when one goes through the buyer from the company) jean. The material library stocked with striking Once scraped, the fabric was also being sewn to develop inseam is not done with a mere a surface manipulation denim swatches such as differently overlock stitch, instead it uses coloured fabric’s right side serging of individual plies, and wrong side. The The joining both the plies result is not achieved inseam is with a chainstitch, with differently not done with a and one top coloured warps mere overlock stitch, stitch. Such a and wefts – instead instead it uses serging construction the fabric is of individual plies, ensures the treated first with joining both the plies seam does not resin and then with with a chainstitch, twist when worn, different settings of and one top washed, or ironed. laser applications on stitch. “These are the small both sides. The factory’s things that add to Whiskers being developed finishing floor is replete the quality and wearer’s with operators reproducing comfort. This instead gives a clean other such similar intricate finishes finish, a rich look and represents the with lasers, sandpaper, scrapers, value we provide to our customers,” etc. on denim jeans loaded on Ifthikar avers. legger dummies. While the focus on innovating and Although a dedicated denim designing is definitive, the next manufacturer for the product range direction is blending innovation with FOB range of US $ 18-22, with sustainability. The washes Ifthikar simplistically refers to and styles finalized at Sai-Tex for the products as basic 5-pocket G-Star’s next line are getting the jeans. In fact, he believes that a PP bleached look without using The PP spray region: Next year onwards, Sai-Tex will 5-pocket jeans is as basic as a denim start using an indigenously developed eco-friendly PP sprays. Ifthikar is particularly alternative to PP spray for G-Star products

www.apparelresources.com  JULY 2016  StitchWorld 35 Company Review

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

pleased with the development. performance can be accessed by yet the average style changeover “This is a landmark achievement Ifthikar at any given time using the time at the factory is one hour – a since it is imminent that PP G-Pro RFID based real time data staggeringly low statistic. The sprays will be phased out of mass collection systems integrated with impressive feat comes on the back production just as sandblasting FastReact ERP. “Factories generally of implementation of Kanban, was. We have superseded the use manual challans and stay stuck Supermarkets, Central Part Units, general market graph with this in the rut of follow ups of stale and Automation, a judicious accomplishment. Next year, around information. We on the other hand combination of management tools this time, when these styles enter have cut discrepancies by 70-80%,” and technology. the production floor, our success he shares. Sai-Tex has done away “You will see that for any product, and work culture will charge the with paper-based production in 9 out of 10 garments, the back atmosphere like never before,” reporting system. Instead, there are is different and the front similar he shares. The R&D team at Sai- computer terminals at shopfloor or vice-a-versa. So, technically the Tex has also been successful at with restricted user-access, every net style changeover effect should devising substitute procedures that supervisor from cutting to sewing be on the section preparing the

Templates, which serve as a guide for areas Apart from serving as material transport systems, the colourful baskets on the sewing The Supermarket between Front and that must be scraped and abraded, being floor also serve as a visual indicator of WIP. Each basket can accommodate only 10 Back CPU, and Assembly CPU developed on-site pieces and there can only be 40 such baskets in one line at a given time

utilize only one wash for erstwhile to finishing department keys-in changed panels,” Ifthikar avers. procedures that utilized a minimum the production figures and the MIS Correspondingly, he devised of three washes. makes available the latest status Central Part Units, i.e. instead of a immediately. “All this ensures that I single assembly line, where there The Production Floor am not dependent on my laundry are three types of lines – front, The value-added product has managers and don’t have to wait till back, and assembly. Each line type supported the company to ensure 10 O’ clock in the morning to know has mutually balanced targets and that there is no compromise what is the status,” he reasons. a Supermarket exists between on product quality and settling Much like the industry norm for assembly and parts. Alongside this, for mediocre or traditional complex products, Sai-Tex deals the changeover team looks after unproductive and inefficient with small order quantities (3,500 areas such as threads, presser foots, systems. The entire factory’s pieces) of value-added products and needles, etc. to be changed. “Above

36 StitchWorld  JULY 2016  www.apparelresources.com Company Review

all, the assembly never runs out of loading,” Ifthikar highlights. QUICK The benefits of this system are FACTS manifested as time and material Product handling savings as well. In conventional assembly lines, an Denim operator working on front also Bottomwear transports the back. CPUs help eliminate this transportation Annual Turnover wastage. Talking about the time saving, Ifthikar shares that for US $ 96 a product with Total SAM of 14 million minutes (5 minutes: front, 3 minutes: back, and 6 minutes: assembly), Buyers the sewing throughput time is 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

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

www.apparelresources.com  JULY 2016  StitchWorld 37 Company Review

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.

down to floor. This reduces the breakdowns, lack of skilled labour residual moisture in the garment or absenteeism. for subsequent drying. “We look Yet, although the buyer’s QC at automation because we need manual mandate one QC for every to be very cost-effective. Today 25 operators, Ifthikar has deployed sourcing hubs are thriving because Roving QCs and in-line QCs at every of cheap labour. The ones who front, back, and assembly line. “Front are passionate about the product and back lines’ output serves as an do not appreciate this status quo. input to the assembly process and Besides, more labour, implies we have to ensure that it is perfect more complications, more human so that when it goes to assembly, it touch, and less consistency,” does not come back,” he explains. Ifthikar argues. Another factor that adds to Sai-Tex’s In a striking paradigm, the competitive approach to quality is production teams and technicians that the factory does not outsource are held responsible for quality at any washing procedures. Sai-Tex. Questions related to quality lapses are asked to the production For days to come… team. “Quality department is As TPP regime kicks in, Sai-Tex will responsible for timely highlighting be ready with a fabric processing of troubles, and if the production unit by next year. In the first phase, teams wait till the QC highlights the the factory will be ready with the shortcomings, then what are the finishing infrastructure. “With this functions of production teams?” we will be able to control wash asks Ifthikar. He further sheds light defects, and above all not depend on the nipping in the bud approach so much on bleaching,” Ifthikar to quality pitfalls with the reason shares. Eventually, in five years that nothing hurts productivity the plant might go on to include like poor quality, not even machine Md. Ifthikar, Production Director, Sai-Tex weaving infrastructure.

38 StitchWorld  JULY 2016  www.apparelresources.com 39 StitchWorld Tech Reads

TECH READS – II An 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.

has won the 1996 Institute their performance, making FACTORY PHYSICS of Industrial Engineers IIE/ the book a must-read for BY HOPP AND Joint Publishers Book of the managers conjecturing how SPEARMAN Year Award. to coach a perfect team. Excerpts: “It is interesting The key take away from Recommended by Anand to note that both, the best- the book however remains Deshpande, Founder, case scenario and worst-case that there are essentially Aadma Consulting performances occur in systems three types of people with no randomness.” Why read ‘Factory – the high performers, Physics’? the average performers PEOPLE AND and the poor performers. This book encapsulates The high performers are production management as PERFORMANCE self-motivated and need a science rather than merely BY PETER a pat on the back every an art and demonstrates how DRUCKER once in a while to keep production can be improved them motivated. The Recommended by S Badri through scientific bent of average performers need mind and data analysis Narayana, Director – Operations Excellence, FLAME TAO Knoware frequent inputs so that along with intuitive insight. they can perform better In essence, the book posits Why Read ‘People and than average. The poor that the managers and Performance’? performers on the other engineers must work towards Peter Drucker, an hand need to be given identifying opportunities Austria-born American simple tasks and timely for improving existing management consultant, follow-ups to ensure that systems, design effective educator, and author, the tasks are done correctly. new systems, and make is often called the ‘The Excerpt: “The only the trade-offs needed to Founder of Modern choice for an institution coordinate policies from Management’. He predicted is between management disparate areas. This work and mismanagement.” 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

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