Feedback
A pioneer B2B media and publication platform connecting with Fashion Brands & Retail in India
 

‘It will be very tough now and might take six months to be normal’

Pravin Mutha, MD, Cool Colors, Bafna Clothing

PravinMutha MD Cool Colors Bafna Clothing“Year 2020 scenario is the first time manufacturers have faced such a huge challenge. If they achieve even 60 per cent of sale compared to last year, it will be a great achievement and I presume that 20 per cent of manufacturers and brands will be wiped out. This is a big concern and the government needs to play an active and important role in this. The government has to understand the garment and textile industry is the second largest after agriculture and employs a huge amount of labor from all sections of the society. Hence, the government has to think exclusively for MSME’s and textile and garment industry, like restriction of customs on import, large format stories to source only from Indian market etc.”

What do you feel is the current status of the garment and textile industry in India?

The current situation is one of the worst we have seen till now. Everything, specifically for the garment and textile industry is at a stand still. Goods have piled up with the garment and textile manufacturers and orders have been cancelled. Manufacturers had increased production compared to their regular production as Ramazan had come in early retailers and distributors were unable to pick up causing a tough time in terms finances. This will create a cash crunch in the industry.

The industry is passing through challenging times but do you think this situation is a lesson for us to look out for other sourcing and not be over dependent on China? 

I don’t agree that we depend on China as far as the cotton industry is concerned cotton is brought from within India. We do import some exceptional fabrics and accessories from them. As far as the rest of the world is concerned, yes they do depend on China. So it is a good that there might be a shift from the Chinese market to the Indian market. There is a positivity as far as buying is concerned. Manufacturers like us do not depend on China and I would like to request manufactures and large format stores who produce their goods in China and Bangladesh to support Indian manufacturers.

Should they look at India as another hub from where they can procure?

Quantity is a concern but if there are orders, Indian businessmen will increase their capacity. I feel quantity will not be an issue but price points will be in comparison to China because India has redone the labor laws and rentals, rate of interest and electricity are high for investors to put up factories. I am sure the government will look into this and we do not have a say as it deals with the laws but where price points are concerned, we will have to face stiff competition from China.

The fear is this crisis might see small manufacturers pulling down shutters.

I completely agree but the positive side is that a lot of small manufacturers do not have their own factories, we call them merchant manufacturers. They source from job workers hence the job workers are facing a tough time as the government is asking them to pay salaries without working and the job workers do not have much margin. So the government has to rethink this. As for small manufacturers, the readymade market is completely credit-oriented hence, manufacturers are in trouble with inventory piled up and they are unsure of monetary returns. It will be very tough now and might take six months to be normal.

Many industry leaders have suggested manufacturers should take away year 2020 from their book of accounts. Your take.

I too agree with them. Year 2020 scenario is the first time manufacturers have faced such a huge challenge. If they achieve even 60 per cent of sale compared to last year, it will be a great achievement and I presume that 20 per cent of manufacturers and brands will be wiped out. This is a big concern and the government needs to play an active and an important role in this. The government has to understand the garment and textile industry is the second largest after agriculture and employs a huge amount of labor from all sections of the society. Hence, the government has to think exclusively for MSME’s and textile and garment industry, like restriction on customs for import, FDI and LFS’s to source only from Indian market.

The government has given some incentives do you think they are enough? What are your expectations?

The government has done nothing. Their announcements are a complete trap. I will explain this with two examples. They announced they will contribute to the PF amount on two conditions. First, the unit must employ less than 100 people and the 90 per cent of salaries should be less than Rs 15,000. Is this possible? On the other hand we are being told to improve our employment, invest more etc. Have we sinned employing thousands in our factories? The government should support us like they are supporting others. Why this discretion of units with less than 100 employees? The second one is deferments of EMI’s. This is also the same. EMI’s have been deferred for three months but later we will have to pay with the interest. Instead of deferring EMI’s by three months they should have extended the loan period by three months.

LATEST TOP NEWS
  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10

Indian e-commerce players need better strategies to lure customers

Indian e-commerce players need better strategies to lure customers

      Experts believe without effective e-commerce, India’s post-pandemic economic recovery would be harder than it is now. E-commerce players like Myntra and Amazon are helping physical stores overcome difficulties in delivering... Read more

Crisil predicts 25-30 per cent fall in revenues of RMG makers in FY21

Crisil predicts 25-30 per cent fall in revenues of RMG makers in FY21

     Crisil Ratings predicts a 25-30 per cent decline in revenues of RMG makers in ongoing financial year due to the prolonged lockdown and lower discretionary spending. The agency expects this... Read more

From casual to need-based, COVID-19 changes consumer’s shopping habits

From casual to need-based, COVID-19 changes consumer’s shopping habits

    Shopping, the favorite hobby of many Indians; especially women, is undergoing a paradigm shift with the pandemic altering not just the modes of shopping, but the products being bought. While... Read more

India expects ‘V’ shape economic recovery from next year: Fin Min

India expects ‘V’ shape economic recovery from next year: Fin Min

     Speaking at a virtual conference organized by the Federation of Indian Chambers of Commerce and Industry (FICCI), finance ministry official said the government was expecting a "V" shape economic recovery... Read more

Apparel brands and retailers defer new launches owing slow demand

Apparel brands and retailers defer new launches owing slow demand

     Apparel brands and retailers have deferred new launches for this season owing to the extremely slow recovery in consumer demand that resulted from the above-mentioned situation, While a big number of... Read more

Designer Archana Kochhar distributes masks to frontline workers

Designer Archana Kochhar distributes masks to frontline workers

     Designer Archana Kochhar and her team understand that no amount of appreciation will suffice to acknowledge the efforts of the frontline workers who are risking their lives without a thought... Read more

Emotional connect, less wastage fuels demand for bespoke fashion in India

Emotional connect, less wastage fuels demand for bespoke fashion in India

    The growing emphasis on quality over quantity is boosting demand for customized fashion in India. With people buying less, their interest in off-the-rack clothes is weaning, feels designer Payal Singhal... Read more

Weekend shopping shrinks as consumers shop during weekdays, office hours

Weekend shopping shrinks as consumers shop during weekdays, office hours

     With consumers venturing out more during weekdays and office hours, the trend of weekend shopping has shrunk to a third. This change is mainly a result of closure of multiplexes,... Read more

Steady online retail revive demand as offline retailers gear up to boost sales

Steady online retail revive demand as offline retailers gear up to boost sales

    The nationwide lockdown being implemented to curb COVID-19 spread has hit Indian fashion and apparel sector hard with sales recovering just 35 per cent that of January levels. Latest Redseer... Read more

High-street retailers stage quicker recovery than malls: RAI

High-street retailers stage quicker recovery than malls: RAI

     High-street shopping destinations in metros like Delhi, Bengaluru, Pune, Kolkata are staging a quicker recovery than malls for retailers, says a survey by the Retailers Association of India (RAI). Stores... Read more

MOST POPULAR NEWS
Go to top

Follow Us On:

Face BookDealersForYou

TWDFUpublications

LNDFUpublications

YouTubeDFUpublications

 Copyright © 2020 DFU Publications. All rights reserved.