Indian apparel industry looks poised for slow death
US and EU – the two major markets of Indian exporters are in turmoil due to the ongoing Covid-19 pandemic. Fibre2Fashion spoke to few exporters to understand the kind of losses they are staring at.
We have not been able to quantify the exact losses yet, as we are still discussing with buyers how many orders they are cancelling or moving to the nextyear which will impact our current sales. We will know more later on as the business resumes. Currently, we are shut down and the business is at a standstill—from our suppliers to our buyers.
I have not got the exact figures but given the unshipped goods, fabrics in stock and salaries and wages already paid for March plus the fixed overheads, the approximate loss of fixed overheads should be in the region of$7,200,000 up to April 7. Right now our factories are shut. When we can open,honestly, it depends on the situation in the buyer’s country.
We have quantified all the losses till date and also been hit hard by the economic fallout. The Indian apparel industry looks poised for a slow death, and if the situation does not improve, many companies will be shuttered. India’s exporters also face a crunch as Covid-19 pummels the economy. Many of our known apparel exporters have suggested that an industry relief package is urgently needed to prevent millions becoming jobless.
Published on: 18/05/2020
DISCLAIMER: All views and opinions expressed in this column are solely of the interviewee, and they do not reflect in any way the opinion of Fibre2Fashion.com.