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In July, apparel sales in India were at 63 percent of pre-pandemic levels

19th August 2021, Mumbai:

In July, clothing sales in India were at 63% of pre-pandemic levels. This was stated by the Retailers Association of India (RAI) in its 18th edition of the Retail Business Survey.

Overall retail sales in July were 72 percent of pre-pandemic levels – July 2019 – compared to 50 percent in June, according to the study.

The garment sector is optimistic about the forthcoming festival season, which is typically a lucrative opportunity for retailers.

According to the study, retail companies in south India made a strong return in July 2021, with sales at 82 percent of pre-pandemic levels (July 2019), compared to 50% in June 2021. West India, on the other hand, is still recovering, with sales at 57% of pre-pandemic levels (July 2019). This is mostly due to long-term limitations in Maharashtra, which have hampered the efficient operation of contemporary retail in the state.

“As the festive season approaches, there is a chance of considerable sales rebound for retail enterprises, if limitations on contemporary retail are removed across the nation, allowing seamless operations and a return to normalcy,” said Kumar Rajagopalan, CEO of RAI. According to the organization, reopening retail will give companies a chance to recover, safeguarding the livelihoods of millions of people who rely on the retail industry.

Branded apparel sales up 5-10% in April-June qtr on aspirational demand |  Business Standard News

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In July, apparel sales in India were at 63 percent of pre-pandemic levels

Tirupur's clothing industry is concerned about container scarcity and lockdowns

21th August 2021, Mumbai:

Unfundamentally rising air freight, a lack of sea freight containers, and a six-week shut down due to the Covid second wave have resulted in over Rs 2,500 crore worth of clothes being stranded in Tirupur.

Worse, they may never make it to other markets, instead of ending up in India at a fourth of the price during Diwali.

During the peak production months of April and May, Tirupur was shut down for approximately 6 weeks, either partially or completely. As a result, there was no manufacturing, and orders could not be fulfilled.

When the lockdown was lifted, the outstanding orders were fulfilled, but the containers were no longer available for shipment, and air freight prices skyrocketed.

“We won't be able to transport the products via plane. At many airports, there is a massive backlog. Freight prices have now increased to Rs 300 per kilo, up from Rs 100 per kilo before Covid.

We are prepared to pay, but there is a line, and the congestion at the airports is only getting worse,” Raja M Shanmugam, President of the Tirupur Exporters Association, said (TEA). The issue with ocean freight is becoming worse. Shipping to Europe now costs $5,000 per container, up from $1,500 before to Covid, while shipping to the United States now costs $14,000, up from $3,000 prior to Covid,” he added.

 

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“Around Rs, 2,500 crores worth of clothes are hanging around in various locations, and exporters are haggling with companies to avoid losing money. The terrible thing is that some of them are seasonal goods, and if they miss the window of opportunity to sell in international markets, they become obsolete.

Either the brand must unload it on "sale" for roughly a quarter of the price, or we must remove the brand label and sell it in India, which is not commercially viable,” he explained.

The TEA has raised the issue with the state and federal governments to assist alleviate airport congestion. He said, "We have addressed the administration and are awaiting a response."

The Weekend Leader - Raja Shanmugam | TEA, President | Warsaw  International, founder | Success Story

 

 

Tirupur's clothing industry is concerned about container scarcity and lockdowns

In the current fiscal year, Indian textile exporters are expected to expand by 20-25 percent, according to ICRA

18th August 2021, Mumbai:

According to research by rating agency ICRA, India's textile exporters are expected to expand by 20-25 percent this fiscal year. The reasons that have fueled a strong increase in demand for home renovation items over the last year are projected to continue in the remaining quarters of FY 2022, following the trend of the previous three.

The solid order book position of Indian home textile exporters reflects predictions of high holiday demand this year, underpinned by favorable immunization coverage across major markets.

According to the research, ICRA's sample set of firms (big and listed enterprises that account for 35-40% of India's home textile exports) are expected to expand at a solid double-digit rate of 20-25% in FY 2022. “Sale of the sample set has been 25-40% greater for the past three quarters than the three-year average for the pre-Covid period. Home textile export was one of the first textile categories to rebound from the pandemic's impact last fiscal, with firms reporting three consecutive quarters of double-digit growth after that,” said Pavethra Ponniah, Senior Vice President and Co-Group Head, Corporate Sector Ratings, ICRA.

The largest market, the United States, drove export demand, accounting for 60% of India's domestic textile exports. Exports to the US grew by 14 percent in FY 2021, compared to a 9% growth in India's home textile product exports of US $ 5.7 billion in FY 2021, while exports to the other main markets of the UK and the EU declined Y-o-Y. Apart from the faster opening up, the growth in shipments to the United States is partially due to the distribution model for these items, with a significant percentage accounted for by major departmental chains that stayed open even throughout the lockdown period, Ponniah noted.

According to ICRA's channel inspections, the bigger exporters have a healthy order backlog and are more likely to rely on job work/outsourcing to meet delivery obligations in the coming quarters. In terms of financial performance, the firms in the sample reported increased operating margins in FY 2021, thanks to greater economies of scale and lower input costs.

While the benefits of operating leverage are expected to continue in FY 2022, cost pressures have increased due to forecasts of a robust sales turnover. Cotton yarn, a crucial basic ingredient for making made-ups, has been trading at roughly 40-50 percent higher prices, according to the study.

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india exports: Rotten pomegranates, unsold garments mark the 'worst time'  for Indian exports - The Economic Times

 

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In the current fiscal year, Indian textile exporters are expected to expand by 20-25 percent, according to ICRA

Dr A Sakthivel, President, FIEO HAILS THE ROSCTL SUPPORT OF THE APPAREL SECTOR

17th August 2021, Mumbai:

The announcement of RoSCTL 'support for apparel & made-ups sectors' as per Dr A Sakthivel, President, FIEO is a welcome timely announcement, more so when when have started to see buoyancy & elevated momentum in exports and currently have a robust order exports pipeline.

FIEO, President graciously & liberally thanked the Hon’ble PM, Commerce & Industry Minister and the Finance Minister for supporting the textile sector exporters with the RoSCTL most needed help during the current challenging & trying times.

He was more forthcoming in his acknowledgement this measure would add sector's competitiveness to exports of garments and made-ups from India in the coming seasons. Dr Sakthivel stressed further that the RoSCTL will facilitate the country gaining edge to let regain the lost market share & ground from competing nations. 

President, FIEO made an aspirational statement that optimistically the apparel sector should aim to enhance its share to 5% of global imports both in the woven & knitted segment and 6% in the made-ups segment by 2024 and he has been consistently been maintaing that it is doable.

 

 

 

About FIEO - Namaste Bharat

 

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Dr A Sakthivel, President, FIEO HAILS THE ROSCTL SUPPORT OF THE APPAREL SECTOR

Exports of apparel to key markets are growing at a steady rate, according to the AEPC

16TH AUG 2021, MUMBAI:

As the key foreign destination, India has been at a duty disadvantage against rivals. According to the AEPC chairman, India's exports to the EU have a tariff disadvantage of 9.6% compared to exports from Bangladesh, Cambodia, Turkey, Pakistan, and Sri Lanka. Apparel exports to key markets such as the United States, Europe, the United Kingdom, Saudi Arabia, Canada, Japan, and Australia are growing steadily, according to the AEPC, and the industry will help India meet its USD 400 billion export target for the current fiscal year.

Chairman of the Apparel Export Promotion Council (AEPC), A Sakthivel, stated that apparel exports are increasing in every western market.

"Exports to the United States grew by 22% from January to May 2021 compared to the same period the previous year," he stated during the 42nd Annual General Meeting of the Council. According to the chairman, he has advocated for the government to expedite free trade agreements with the European Union, the United Kingdom, the United States, Australia, and Canada.

"In the key foreign destination, India has been at a duty disadvantage against rivals. In comparison to exports from other nations such as Bangladesh, Cambodia, Turkey, Pakistan, and Sri Lanka, India's exports to the EU face a tariff disadvantage of 9.6%. Bangladesh continues to gain from preferential trade privileges in the UK following the UK's exit from the EU "he stated.

Padma Shri Dr A Sakthivel takes over as the new Chairman of AEPC - Perfect  Sourcing — Latest Fashion, Apparel, Textile and Technology News

 

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Exports of apparel to key markets are growing at a steady rate, according to the AEPC

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