Akhil Jain, Executive Director, Madame
Since we have our own manufacturing, we are manufacturing less. With lockdown finances are also shut, we will save about 100,000 to 150,000 units, that is produced and this is what I am thinking of if the season doesn’t begin in the next two months. As for autumn/winter, it is still under speculation as China was also under a lockdown and we depend a lot on them for fabrics. Of late, we have started pursuing Chinese counterparts for fabrics and accessories as they started working since the last two weeks.
If the lockdown ends in the first week of May, we will still be in control of the situation. It is not that we are encouraging discounts but probably we are only contemplating the summer season, which previously used to last for eight months and now only for six months. That is why we have cut 150,000 units from our production cycle; it will help me in case the lockdown ends by first week of May.
We are waiting for how the government supports the industry. Industries need more relief hence, we are looking at the government/local authorities and how they help the industry manage negative cash flow in the next six months post reopening. We have decided there will be no layoffs till April 30. We have to be humane and cannot lay off our own labours and feed people outside instead we will do the same for our labours.
As we are members of CMAI and RAI, we have regular discussions among the associations. RAI has submitted a complete document to the government on labour modules, revenue sharing modules, deferment of EMI etc, which summarizes what the industry wants as a whole, so that it can survive post lockdown.