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PROFILE – MARVIS COTTON PTE LTD |
| Introduction |
As cotton evolves in a world where processing and manufacturing adds value, one company stood by this development; Marvis Cotton Pte Ltd, with a cumulative experience of 80 years in the Cotton business.
A worldwide dispersion of offices also allows the company to participate with other countries’ government cotton agencies, enabling a more thorough cotton management trading.
In this changing market, keeping abreast of the developments of the different markets ensures that we stay ahead of the market fluctuation and are on top of quality and delivery. Being at the origin, gives us a competitive edge in price and quality.
Hence, Marvis chose to shift its operations from Europe to Asia to facilitate the demand as sales are done entirely in Asia Pacific Countries; China, Indo Chinese countries; Vietnam , Asia; Thailand, Taiwan and Indian Sub Continent countries; India and Bangladesh,
The Continents of Africa and Asia form its core business, for they provide the support in global supplies and demand.
Our offices are well connected with the latest communication facilities and operate all over the world in tandem with the Chinese working hours to ensure easier facilitation services.
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| Our Role & Aim |
| Obtain raw cotton from countries which best cultivate them and satisfy the global textile industry through import and export.
We have representation in most of the Countries reputed for their cotton cultivation and manufacturing that include Benin, Togo, Mali, Burkina Faso, West Africa’s Ivory Coast and Gabon, India, Brazil, Egypt, as well as the USA.
Efficiently manage the import and export trading of raw cotton from the grower to the spinning mill by strategically purchasing raw cotton from as close to the grower as possible thus having effective control over the cotton supply chain. Our Logistics Management, contract execution as well as strategically placed Bankers ensure that we have the optimum utilisation of time.
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Marvis back end support with its 24/7 technological system provides timely, efficient documentation management and cost-effective systematic solution. This ensures prompt presentation of each commercial document at our Singapore Head Quarters to the respective bankers and clients.
We synchronise the needs and requirements of clients and vendors to deliver our mission statement and strengthen our performance.
But more importantly, the company’s strength is the trust, bonding and respect each personnel have for one another that will propel it to the next level. |
| FUTURE OF INDO CHINA COTTON TRADE |
India's cotton exports to China witnessed a year-on-year growth of 89 per cent in 2004, clocking the fastest growth after the US, which tops the list of cotton exporters to China.
Indian exports to China were largely fuelled by the high demand from Chinese textile manufacturers following the quota phase-out earlier this year. While cotton yarn has been the mainstay in India's cotton exports to China, last year saw a spurt in raw cotton as well.
The forecasts for Indian’s cotton exports for marketing years 2005/06 and 2006/07 were raised significantly in August. Exports in 2005/06 were raised 750,000 bales to 3.25 million bales and the 2006/07 exports were revised up 250,000 bales, to 4.25 million bales. Increasing exports to China supported the large increase in India’s trade. Chinese imports of Indian cotton surged from a total 210,000 bales in marketing year 2004/05, to 2.25 million bales through June of 2005/06. Every month since December 2005, India has been China’s second leading supplier of cotton, behind the United States and surpassing Uzbekistan. India’s exports to other markets, including Taiwan, Thailand and Turkey, have also shown a significant increase in recent months.
Much of the growth in India’s cotton trade can be attributed to increased cotton production in the latest three crops. Average production in 2004/05- 2006/07 is estimated 60 percent above the average of the three previous years. The increase in production is due largely to higher yields, due to better cultural practices including a dramatic increase in Bt cotton acreage. Higher yields have supported grower returns compared to alternative crops and helped boost area.
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India’s cotton exports to China in the current cotton year (August 2006-July 2007) is set to jump manifold as demand from the world’s most populous country will increase about 17% as against a fall of nearly 10% in its domestic production.
The country’s shift from being a net importer to a net exporter and the decline in demand from the traditional export markets of Japan and Europe, have been a major factor in the growth of China’s market share. China is expected to import about 38,65,000 metric tonne of cotton from various countries, an increase of 178% from last year. The country’s total cotton exports are expected to leap 186% to about 4,35,000 metric tonne. The increase in exports is highest among the cotton exporting countries. However, in absolute terms the US exports will maintain numero uno position at 36,58,000 metric tonne, up nearly 17% from the previous year.
The global cotton situation for the oncoming 2006-07 season continues to turn increasingly producer-friendly with world production for the year almost certain to trail consumption as a result of which stocks would be further drawn down.
Initial projections suggest an attractive increase in the season-average Cotlook A-Index for 2006-07 to 64 cents a pound, up from 56 cents in 2005-06.
World cotton output for 2006-07 is forecast at 24.7 million tonnes (mt), marginally lower than 24.8 mt of the previous year, according to Washington-based International Cotton Advisory Committee (ICAC).
Consumption, on the other hand, continues to rise year after year, spurred by global economic growth and increasingly seen driven by expanding usage in Asia led by China to fuel its cotton textile industry needs. China's consumption is expected to reach a whopping 10.5 mt in 2006-07, up 600,000 tonnes from the previous year, ICAC pointed out.
For 2006-07, global cotton consumption is projected at 25.9 mt (25.0 mt). Driven by Chinese import demand, world cotton exports have been rising and are projected to reach a new high of 9.5 mt. China's import requirement is pegged at 4.2 mt representing well over 40 per cent of world trade. |
For India, domestic and international market conditions are favourable. The country is getting ready for a fairly large crop for the third season in a row. Area under Bt. Cottonseed is estimated at about 40 per cent of the total acreage, raising hopes of yet another bumper crop.
India could well become the world's third largest exporter of cotton, after USA and Uzbekistan next season. ICAC has forecast India's cotton exports in the ensuing season at 800,000 tonnes. In 2005-06, the country's exports were a little over 35 lakh bales (170 kg) and for the next season it could reach 50 lakh bales.
On current reckoning, cotton output could be anything between 240 lakh and 250 lakh bales. With opening stocks estimated at nearly 70 lakh bales, prices should normally tend to be under pressure.
However, large-scale exports are sure to provide adequate support to growers and prevent a price collapse. In order to ensure smooth exports and reap the benefit of favourable global market conditions, it is important to address logistics and infrastructure related issues without delay.
The US has traditionally been the largest supplier of cotton to China, with a 52% share of China’s cotton imports since January 1995. However, since the beginning of the 2005-06 marketing year, the US share has averaged only 40% and has declined steadily during that period, reaching only 25% in January 2006.
According to a report by agriculture department of the US government, nearly all other US competitors have seen gains in market share since the beginning of the cotton year. The most notable are Africa, Australia, and India whose combined share so far in 2005-06 is 42% compared to 28% since the beginning of 1995.
With China's annual imports poised to cross $100 billion in the next few years, analysts said that there is tremendous opportunity for Indian exports. |
| Our Bankers: |
- M/S VTB Bank Europe Plc ( erstwhile Moscow Narodny Bank Ltd,) Singapore
- M/S HSBC, Singapore
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