Managing Director Welspun Global Brands Ltd
Besides, what is your outlook on the instability of weather, which is toting up hardship to the retailers?
Weather can have a strong impact on business and retail. It impacts farm output and may also impact purchasing power. Additionally, retail is impacted by reduced footfalls and during extreme weathers leading to slower sales.
As business people, we cannot control the vagaries of nature but have to be prepared for them. The best way to deal with them is to be prepared such that you pare your losses if there is bad weather and be able to maximize gains during higher footfalls.
Inflation, considerably, is the principal challenge for Indian economy. How far it is impacting the textile segment?
Inflation has had a very big impact on overall costs. The costs across the board have gone up. Labor and other input costs are up on average between 10-15 percent. The power costs are also up by 10-15 percent.
Overall, the production costs are now higher than before. Though, we see some reduction in cotton prices, any benefits that may have accrued are nullified through the higher labor costs.
In which regions your home textile brand caters in domestic as well as international market? Moreover, where do you trade with your surplus stock? Besides, can wholesalers trade with your surplus stock?
We are a bed and bath linen company and currently we focus on this. With regards to our surplus stock, we sell most of them through our factory outlets in India or to other places open to buy export surplus. However, this is only done after the customer whose surplus we are selling has approved of the buyer.
India is becoming an expensive sourcing destination. How far it will impact its exports?
While, costs are rising in India, primarily driven by labor and inflation, and it is also increasing in other countries like China. The competition is now from other locations like Vietnam, Pakistan, Bangladesh, Myanmar, Brazil, etc.
As one of the largest cotton producing nations of the world, India will remain competitive in the cotton textile space. India can ensure that it remains competitive in the global market through focused growth in the sector.
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