Who Owns Whom

The Textile Industry in South Africa 2018

Duncan Bekker | South Africa | 09 May 2018

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R 1 900.00(ZAR) estimated $ 119.89 (USD)*

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Report Coverage

The Manufacture of Textiles examines the South African textile industry with an emphasis on the manufacture of home and lifestyle textiles and other finished textile products. Market structure and demand, current conditions and factors influencing the sector’s success are covered in this detailed report. The report profiles 18 industry players, including Gelvenor Textiles which was acquired by South African private equity firm Jacobs Capital for an estimated R285m during 2016. The acquisition brought a further merger as MB Workwear, acquired the previous year, became a division of Gelvenor Consolidated Fabrics.

Manufacture of Textiles

Sales of manufactured textiles were worth around R25bn in 2017, with finished textile products accounting for some R14bn. Although seeing a marginal improvement in the textile trade balance, the South African sector continues to be reliant on the export market while imports, particularly from China, remain a matter of concern. In general the industry is characterised by a relatively high number of small and micro-enterprises as well as informal operations. There were only 20 large firms employing more than 150 people in operation at the end of 2017. As a result, the market is relatively concentrated with the top five companies in the textiles sub-sector accounting for around 40% of income. The sector is relatively labour-intensive and more than 31,000 people, including a high number of women, are employed.

Improving Industry Competitiveness

A great deal of government activity and support focuses on improving industry competitiveness while other interventions focus on buoying local demand and creating efficiencies throughout the value chain from supplier to retailer. These include the Clothing and Textiles Competitiveness Programme (CTCP) and the establishment of a number of regional and product specific clusters. Major clusters include the Cape Clothing and Textile Cluster (CCTC), the KwaZulu-Natal Clothing and Textile Cluster (KZNCTC), and the Southern African Sustainable Textile and Apparel Cluster (SASTAC) with links to Cotton South Africa (Cotton SA).

Table of Contents

PAGE
1. INTRODUCTION 1
2. DESCRIPTION OF THE INDUSTRY 1
2.1. Industry Value Chain 3
2.2. Geographic Position 4
3. SIZE OF THE INDUSTRY 5
4. STATE OF THE INDUSTRY 12
4.1. Local 12
4.1.1. Corporate Actions 23
4.1.2. Regulations 23
4.1.3. Enterprise Development and Social Economic Development 25
4.2. Continental 25
4.3. International 28
5. INFLUENCING FACTORS 30
5.1. Demand Drivers 30
5.2. Economic Environment 30
5.3. Relationship between Retailers and Suppliers 32
5.4. Quick Response Model 33
5.5. Availability of Raw Materials 34
5.6. Rising Operating Costs 37
5.7. Government Support 38
5.8. Labour 39
5.9. Cyclicality 41
5.10. Sustainability and Environmental Concerns 42
5.11. Technology, Research and Development (R&D) and Innovation 42
6. COMPETITION 44
6.1. Barriers to Entry 46
7. SWOT ANALYSIS 46
8. OUTLOOK 47
9. INDUSTRY ASSOCIATIONS 48
10. REFERENCES 48
10.1. Publications 48
10.2. Websites 49
COMPANY PROFILES 51
ARANDA TEXTILE MILLS (PTY) LTD 51
ASSOCIATED SPINNERS (PTY) LTD 54
COLIBRI TOWELLING WESTERN CAPE (PTY) LTD 55
GELVENOR CONSOLIDATED FABRICS (PTY) LTD 57
GOOD HOPE TEXTILE CORPORATION (PTY) LTD (THE) 59
HOUSE OF HEMP (PTY) LTD 61
IVILI LOBOYA (PTY) LTD 63
KAP HOMEWARE (PTY) LTD 64
NINIAN AND LESTER (PTY) LTD 66
PRILLA 2000 (PTY) LTD 68
ROTEX FABRICS (PTY) LTD 70
SAMIL NATURAL FIBRES (PTY) LTD 72
SOUTH AFRICAN POLYPROPYLENE YARNS (PTY) LTD 74
STANDERTON MILLS (PTY) LTD 76
STUCKEN AND COMPANY (PTY) LTD 78
SVENMILL (PTY) LTD 80
YARNTEX (PTY) LTD 83
ZORBATEX (PTY) LTD 85