Home / Knowledge / News / Textiles / Profits reduce as cost of production goes overboard
Profits reduce as cost of production goes overboard
Mar '08
Profits of the Pakistani textile sector have been reduced considerably in the first half of 2008 and this is largely because of rising cost of inputs.

The textile industry and its exports are facing severe competition from its international rivals especially from the neighboring countries and the situation has been intensified due to reduced margins.

Despite Government incentives and subsidies worth billion of rupees, exports saw a drop of 3.44 percent in the first seven months of the current fiscal.

The sector did garner a growth of 10 percent in the first half of 2007-08 but the impact of high cost of inputs and energy nullified the positive effect of the growth.

An ever mounting cost of cotton production and consumption of energy has burdened the industry as profits are getting substantially reduced and importers look for better alternatives.

Experts believe that on an average there has been around 25-30 percent increase in the cost of production during this year mainly due to rising prices of cotton and gas.

During the same period, profits of the spinning sector reduced by 40 percent. Although, net sales surged by 11 percent, a significant decline of 200bps over first half of previous year was evident. Moreover, financial charges also went up by 3 percent.

On the other hand, weaving sector also recorded a net loss of around 25 percent in profits reducing revenues by 5 percent while financial charges rose by 8 percent.

Must ReadView All

Textiles | On 25th Oct 2016

Cotton yield to increase to 568.29 kg/ha in 2016-17: CAB

At its first meeting for the cotton season 2016-17, the Cotton...

Apparel/Garments | On 25th Oct 2016

US most sought after market for UK retailers: Global-e

A majority of the retailers in the UK consider US to be their most...

Courtesy: Fila Korea

Textiles | On 25th Oct 2016

Fila Korea to set up R&D centre in China

Leading apparel brand Fila Korea is planning to establish an apparel...

Interviews View All

Ghanshyam Ghoghari
Kimora Fashion

Bridalwear is not about reds and whites anymore

Mukesh Agarwal & Rajesh Agarwal
Madhuram Fincap Pvt Ltd

Increasing prices and lack of demand main issues facing industry

Karel Williams
Dow Microbial Control

'Silvadur is most rapidly adopted in areas where hygiene-conscious and...

Steve Cole
Xerium Technologies

Steve Cole of Xerium Technologies discusses the industry. Xerium is the...

Lynda Kelly
Suominen Corporation

Suominen Corporation is a manufacturer of nonwovens as roll goods for...

Johan Berlin
InvestKonsult Sweden AB

Investkonsult Sweden AB has been buying and selling second-hand textile...

Judy Frater
Somaiya Kala Vidya

Among the many honours showered on Frater, including Fulbright and Ford...

Wendell Rodricks
Wendell Rodricks

"We should not compare India and the West. There are things we do that...

Igor Chapurin

"Now we can see the Russian trend in international fashion. And Russian...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


Letter To Editor

(Max. 8000 char.)

Search Companies

October 2016

October 2016

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.


Browse Our Archives


Advanced Search