After witnessing a sharp decline since April, India’s ready-made garment exports are on a road to revival. This recovery is largely driven by the European Union (EU) markets. Capacity utilization has increased to 60-80 per cent with customers placing new orders based on the season and the number of stores that opened have globally.
Raja N Shanmugam, President , Tiruppur Exporters’ Association, said enquiry levels are more than last year’s. Brands are now looking for alternatives from China. According to him, Merchandise Exports from India Scheme (MEIS) will not impact apparel exports since it has been withdrawn last year itself.
SP Apparels’ factories are operating around 60 per cent capacity due to social distancing norms imposed by the authorities. The company managed to address labor shortage by providing migrant workers with accommodation and food in the hostel premises. The depreciation of the rupee in the fourth quarter impacted the company’s hedged positions and resulted in hedging losses.
