Home / Knowledge / News / Textiles / Producers forced to sell at low margins to keep wheels running
Producers forced to sell at low margins to keep wheels running
16
Jun '09
The textile and garment sector has been hit hard due to the recessionary trends prevailing in global markets. But it has taken a worse hit at a place which hurts the most; profit margins. Increasing cost of raw materials and at the same time domestic as well as overseas buyers demanding lower prices, the manufacturer is squeezed from both sides. Fibre2fashion spoke to a few companies in India and Pakistan to find out how much the current crisis has impacted the industry players. We spoke to Mr Zeeshan Sattar, Director of Pakistan based Towellers Ltd and Mr Ajay Agarwal, Director of P.S Apparels in India.

We began by asking as to what was the main reason for shrinking margins to which Mr Agarwal said, “The customers due to global recession are looking at cheaper garments whereas our cost of production in India especially the labour cost has been going up, while Mr Sattar replied by saying, “Main reason being liquidity crunch due to which consumer spending has reduced considerably and retailers have to markdown the merchandise to sell. This result in surplus goods with stores having high inventory so less new demands and manufacturers in order to keep the production busy are pushed to sell at lower or even no margins”.

Next we asked them to comment on the actual hit in margins the industry has taken to which Mr Sattar said, “Any where from 10% to 20% depending on the item”. To conclude the interview we asked them as to when they foresee this crisis to end to which Mr Agarwal said, “There has been a substantial reduction in production capacity overall in the last 2 years which should hopefully swing the sourcing in favour of the vendors once the market demand picks up and Mr Sattar winded up the interview by giving a short and sweet answer “By end of 2010”.


Fibre2fashion News Desk - India


Must ReadView All

Textiles | On 23rd Sep 2017

SIMA urges Centre to re-look duty drawback rates

he Southern India Mills’ Association (SIMA) has appealed to the...

Textiles | On 23rd Sep 2017

Pakistan’s textile exports up 5.81% in July-August 2017

The value of textile and garment exports from Pakistan increased by...

Apparel/Garments | On 22nd Sep 2017

Govt announces new duty drawback rates for garments

The Government of India has today announced the new duty drawback...

Interviews View All

Sanjay Yagnik
Maa Tex Speciality

‘We suggest reducing dosage of sizing chemicals to reduce sludge...

Riddhika Shah
SS Homme

'Worsted wool is the ideal fabric for menswear'

Karan Toshniwal
Orange O Tec

Contemporary industry is paying more and more attention to the...

Mark Paterson
Technical Absorbents Ltd

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

Giorgio Mantovani
Corman S.p.A

Giorgio Mantovani, MD of Corman, with a presence in both Milano and New...

Marten Alkhagen
Swerea IVF AB

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

Yash P. Kotak
Bombay Hemp Company

One of the directors of Bombay Hemp Company, Yash P. Kotak, speaks to...

Wendell Rodricks
Wendell Rodricks

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

Anisha Chaudhari
Threads & Shirts

Threads & Shirts is a freshly-tailored concept providing men/women a...

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

September 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

Active Poll

Do you see sustainability as a route to business growth?

Yes
74.5%
No
12.8%
Skip
12.8%

Total Votes: 47

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

Yes No

Active Poll

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

Yes
61.7%
No
25.5%
Skip
12.8%

Total Votes: 47

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

Yes No

Active Poll

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

Yes
87.2%
No
6.4%
Skip
6.4%

Total Votes: 47

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

Active Poll

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

Yes
70.2%
No
10.6%
Skip
19.1%

Total Votes: 47


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