Home / Knowledge / News / Textiles / Textile & apparel sector to endure declining margins
Textile & apparel sector to endure declining margins
11
Sep '08
When a survey on the performance of 47 listed textile and garment enterprises in the first half of this year was conducted, the results did not seem very encouraging. Most of the companies showed unsatisfactory performance despite a number of support policies promulgated by the Government for the sector.

Of the 47 companies, 34 enterprises had their performance declining in the first half, accounting for 72.34 percent of the those 47 enterprises. The hardest hit sectors are mainly concentrated in cotton spinning, chemical fiber and export processing garment enterprises. About 9 of the remaining were identified as loss making enterprises most of which were engaged in rayon & polyester spinning industry.

Moreover, profit margins of the listed textile enterprises in the medium term did not reflect the actual conditions as income from non-related businesses such as transfer of shares, real estate, electrolytic aluminum investment or other cross-sectoral investment were also included in the calculations for returns from textile business. As such they extensively covered up difficulties faced by the textile industry thereby enshrouding the real picture.

Except for a handful of apparel brands in the domestic market who have still managed to secure gains, declining profitability of the textile enterprises has pervaded the entire industrial chain making operations an extremely difficult undertaking.

Investigations made into the existing crisis revealed that the average cost of textile manufacturing enterprises has increased by 20 percent to 30 percent this year. But the textile and apparel products in the market have not undergone a similar price adjustment and as such, profit margins of the enterprises are being squeezed continually putting them under inevitable pressure.

Experts do not foresee the present situation to change in the short term and industry would have to bear with the same for at least another one or two year.

Fibre2fashion News Desk - China

Must ReadView All

Textiles | On 29th May 2017

Special package creates 7,50,000 jobs in garment sector

The special garment package of Rs 6,000 crore that was introduced by...

Textiles | On 29th May 2017

Tintex, Bruckner bring new effects to knitted fabric

The textile company Tintex has joined hands with the system supplier...

Courtesy: Brook Brothers

Apparel/Garments | On 29th May 2017

America's Brooks Brothers added to CLiQ

Tata CLiQ Luxury, Tata group’s multi-brand, luxury e-commerce...

Interviews View All

Ghanshyam Ghoghari
Kimora Fashion

Bridalwear is not about reds and whites anymore

Giovanni Pizzamiglio, Paolo Crespi & Riccardo Robustelli
Epson, For.Tex & F.lli Robustelli

‘The percentage share of printing in the global textile market is pretty...

Evelyne Cholet
UCMTF

‘France had a reputation of being big in new ideas, but poor in marketing...

Suresh Patel
Sidwin Fabric

Sidwin Fabric is a manufacturer and exporter of polypropylene textiles and ...

Marten Alkhagen
Swerea IVF AB

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

Mark Paterson
Technical Absorbents Ltd

Mark Paterson, R&D manager of Technical Absorbents Ltd talks about Super...

Robert Brunner
Devereux

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

Bani Batra

Bani Batra’s couture wedding collection is inspired by traditional Indian...

Madhu Jain
Madhu Jain

She grew up in the walled city of Old Delhi, completed her studies, and...

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

news category


Related Categories:
May 2017

May 2017

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

SUBSCRIBE


Browse Our Archives

GO


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