'Expect major upheavals if recession persists'- Mr Haq, CEO, Jaguar

05 Feb '09

3 min read

The economic recession which has unfolded and held in its grip all countries worldwide is affecting the economy of most countries without differentiating between developed or developing nations. Most of the key sectors have been affected including that of textiles and garments.

fibre2fashion had run an exclusive series in 2008, and brought forth to our readers the views of top honchos from the Indian industry on the crisis. Now, we are taking one more initiative of taking views from companies across the globe to give our readers a wider perspective of the impact of the crisis.

We spoke to Mr Naeem-Ul-Haq, Chief Executive Officer of the US $20 million Jaguar Private Ltd., which is one of the leading apparel manufacturing companies in Pakistan. The company was established in 1949 and is a registered exporter of knitted garments and fabrics and has approximately 3,500 employees. Its dyeing house is considered the largest and most advanced dyeing units under one roof in Pakistan.

We started off by asking him his views on the over all global textile and apparel market because of the slow down in the economy. Mr Haq replied by saying, “Yes definitely the slow down of the economy the world over has had an adverse effect on the global textile and apparel market, particularly the Indo-Pak subcontinent, which is in to exports of textiles and clothing on a large scale.

Due to this slow down in the global economy, the market prices are very low as compared to those prevailing a few months ago, while at the same time cost of production is increasing with each passing day, especially of raw materials. This situation will be difficult to sustain for long, as there is a limit to how much anyone can keep on sustaining losses”.

To another question on the impact it has had on his company, he answered by saying that, “It has had an effect to a certain extent in the last couple of months, but slowly situation is moving towards better rather than worse”.

To a question, whether he expected any changes in the industry over the next couple of years, he replied by saying, “If the market recession remains as it is for the next couple of years then definitely there will be sufferings in the global market on account of low sales turnover within the sector and at the same time you can expect major global upheavals”.

Fibre2fashion News Desk - India

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