Crisil report: Garment Makers Revenues To Rise Decently This FY

28 April 2022, Mumbai:

Readymade garment makers to report a 16-18% jump in revenues this fiscal.

Export demand is expected to grow at least by 12-15%, despite the higher base of last fiscal, as overseas players continue to diversify their supplier base in light of the economic crisis in Sri Lanka and a fresh surge in covid cases in China, which has disrupted supply chains.

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Supply chain disruptions in markets such as Sri Lanka, which has been reeling under a severe economic crisis, and China, facing harsh pandemic-induced lockdowns, could benefit Indian ready-made garment manufacturers that could see an uptick in revenue.

“Normalization of discretionary spending, higher realizations and continued export demand due to higher opportunities following supply chain issues in Sri Lanka and China will boost ready-made garment (RMG) manufacturers’ revenues by 16-18% this fiscal year,” Crisil said in an industry report.

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Anuj Sethi, the senior director, of Crisil Ratings, said domestic demand, which accounts for three-fourths of the overall RMG demand, is expected to grow by over 20%.

This is on account of recovering discretionary spending and improving realisations amidst the surge in raw material prices.

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CREDITS: MINT Anyfeed News Flash Flipboard News5s (The news article has not been edited by DFU Publications staff)