The current Covid-19 crisis is a world changing event, and the ways of doing business shall also change for ever, a textile industry stakeholder has said. All companies have strategies to deal with a slowdown, but probably no company was prepared for a lockdown that brought everything to a grinding halt resulting in a deep fog of uncertainty.

"Massive cancellations are posing a significant threat to almost all organisations as the whole supply chain stands disrupted. Present times are unthinkable and unimaginable, and nobody was ready for it," Ginni Filaments Limited business head-Spinning BK Sharma told Fibre2Fashion.

"We all have strategies for slowdown but probably not for lockdown and resultant shakedown. These are lifetime learnings which will surely teach all of us ways and means to stay afloat and survive. Revival shall come later.

"Due to massive cancellation or hold (which is as good as cancellation) of orders in the complete value chain, everything has come to a grinding halt," Sharma said explaining the present situation.

When asked about his suggestions to fashion brands / retailers, he said, "Cash inflows have almost dried and outflows still remain. Since there is a deep fog of uncertainty, we need to spread our cash reserves for a period of at least six months before we see demand curve again catching up. In this situation, supply chain should not work on 'win- win'. Rather we should work on 'no loss-no loss' strategies."

Ginni Filaments is currently adopting a wait and watch strategy towards order cancellations. In the meantime, the official said, "We are trying to find ways and means to preserve our cash reserves and are also trying to spread them over the next two quarters. Also, all the cost structures are being revisited."

"We must remember that since this is a world changing event, the ways of doing business shall also change for ever," he concluded.

Fibre2Fashion News Desk (RKS)

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