Home / Knowledge / News / Textiles / Profits reduce as cost of production goes overboard
Profits reduce as cost of production goes overboard
15
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 22nd Jul 2017

Govt constitutes GST Feedback and Action Room

The Government of India has constituted a Feedback and Action Room...

Textiles | On 22nd Jul 2017

India’s cotton textile exports fell in FY17: Tamta

The overall export of cotton textiles from India declined in 2016-17...

Textiles | On 22nd Jul 2017

Warangal textile park gets environment clearance

The Kakatiya Mega Textile Park, coming up in Warangal district of...

Interviews View All

Rajiv Sirohi
Shara

‘Portugal is taking away a major share of the mill made sector.’

Rahul Bhadani
Looksgud

Navigating through catalogues is a bit hasslesome

Victor Chao
Esmetex

‘In future, clothing boundary lines will become increasingly blurred.’

Lynda Kelly
Suominen Corporation

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

Marten Alkhagen
Swerea IVF AB

Marten Alkhagen, Senior Scientist - Nonwoven and Technical Textiles of...

Eamonn Tighe
Nature Works LLC

Eamonn Tighe, Fibres and Nonwovens - Business Development Manager of...

Robert Brunner
Devereux

Golfwear and menswear brand Devereux is set for greener pastures. Robert...

Rupa Sood and Sharan Apparao
Nayaab

Nayaab, an exhibition meant to celebrate Indian weaves, is in its second...

Judy Frater
Somaiya Kala Vidya

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

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

July 2017

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

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Thanks for your valuable feedback. Claim your free latest sustainability e-book.


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search



X