Consumers are increasingly switching to cheaper products, and prices are coming under pressure. However, there is a niche market for high-end fabrics that exists even today. We are fortunate that we have focused exclusively on high-end markets for the past 10 years and are not saddled with large capacities. We continue to serve this market today, and are trying to offer our customers better value from the same product.

We are fortunate that in several of our products, we are recognised to be world class in terms of quality. As I mentioned earlier, we are trying to give our customers better value from the same product, for example by providing shorter delivery times or by changing the fabric construction to reduce cost.

Morarjee uses imported cotton for its shirting fabric as we require long staple quality cotton to produce premium fabric. The cost of imported cotton has reduced recently from its peak 6 months or so ago. The other thing that we do is cover cotton prudently when price trends are more favourable.

There were two major decisions. One was to reimburse part of the interest on the loans obtained under the TUFS. While this policy was in place, the reimbursements took very long. The government has decided to clear the dues as a result of which companies will have some more inflows. Secondly, the government has increased the moratorium period for repayment of loans by an additional year. These decisions will give the industry a breather going forward.

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