Apparel Online India Magazine January 1st Issue 2019 | Page 17

HOT TOPICS
Dec. 16-31
Focusing on apparel
manufacturing,
Sri Mahasakthi Mills
will invest Rs. 25 crore
T RAJKUMAR,
CHAIRMAN
Sri Mahasakthi Mills Limited,
Kerala and ED, Sakthi Group,
Textile Division
“We are now focusing more on
apparel manufacturing and planning
to invest Rs. 25 crore. We are likely
to initiate a garment manufacturing
unit in Ethiopia. Some of the Indian
companies already have their plants
in Ethiopia and have received positive
feedback from them.”
MARKETS
May 1-15
Emerging Market Evolving and Growing Russia…
Big Opportunity for Exporters
World’s largest nation geographically (spanning 11 time zones, being the 6th largest economy,
boasting a population of 144 million with per capita GDP of US $ 8,840 in 2016), sharing close
historic and economic ties with prominent European and Asian countries, Russia is strongly
emerging as a potent market for retailers, manufacturers and exporters, looking to capitalise on
its rising popularity. After more than a decade of rollercoaster ride – during its boom in the early
2000s, the value of the Russian clothing market soared from US $ 5 billion (€ 4 billion) in 2004 to
US $ 46.6 billion (€ 37.4 billion) in 2005 to drop again substantially to US $ 31.15 billion (€ 25 billion)
in 2015 (in the backdrop of economic sanctions following the annexation of Crimea). However, it
rose again to touch US $ 43.2 billion in 2016 and is still now showing signs of picking up following
apparent rebounding of the Russian economy.
November 1-15
Analysing AO TOP
100: FY 2017-18
THOUGH TOPLINES
INCREASE BY 11.8 per cent,
PROFITABILITY TAKES A BIG
HIT – COLLECTIVE TURNOVER
IS RS. 34,699 CRORE
The last two years have been
very difficult for the industry and
despite our best efforts, getting the
industry to share information on its
turnover and growth plans has not
been an easy task at all. However,
52 companies did share their data,
and we salute their spirit as they
understand the importance of putting
together the Top 100 listing. Another
18 are public limited companies
and collecting their data was not so
challenging… What was challenging
was analysing the facts gained from
market sources and coming up with
an approximate figure for the rest.
As per estimates, these 100
companies in FY 2016-17 (FY ’17)
registered a total turnover of
Rs. 31,036.24 crore, and the same
set of companies saw 11.8 per cent
growth in the turnover of FY 2017-18
(FY ’18) to register a total turnover
of Rs. 34,699 crore. There are 16
companies with turnovers exceeding
Rs. 500 crore, registering a combined
turnover of Rs. 21,569 crore in
FY ’18. These same set of companies
registered a turnover of Rs. 18,903
crore in FY ’17, hence leading to a
collective growth of 14 per cent as
far as turnover is concerned. In the
segment of Rs. 200 core to Rs. 500
crore, there are 22 companies with a
combined turnover of Rs. 6,690 crore
in FY ’18.
YOGEETA
PRABHAKAR
MD, Prabhakar
Overseas Group,
Noida
“Majorly my father
worked through
a trusted buying
house as Russia has a
language barrier and
not many people are
trusted in this field.
We supplied mostly
maxi dresses as they
were always in big
demand in Russia.
We were provided
with techpacks to
prepare the sampling
for the order. Earlier
Russia was not
much focused on
compliance, but after
the implementation
of US and European
global norms policy on
compliance and safety,
Russians too have
started following it.”
MANDIRA MALIK
Something Else, Delhi
“I have no experience
with the Russian
market. All the
business that we do
in Russia is through
European importers.
My experience has
been that it is a very
price-sensitive market
and ECGC cover or
bank guarantee is
essential. Russia is
very trendy and brand-
conscious market, but
not high on quality
levels.”
RAHUL PAREEK
Proprietor, Spring
Exports, Jaipur
“From last five years,
we are working
directly with Russian
wholesalers and have
not faced any major
issue, be it language,
payment or anything
else. The only difficulty
is that we need to be
extra careful about
custom formalities,
and for that we took
help of concerned
agencies. Tops and
camisoles are products
we are exporting there
and mainly cotton twill
and viscose fabric for
the same. From last
two years, orders are
comparatively less
from Russia.”
MARIYA KELINA
Senior Consultant
– Retail & FMCG,
Kontakt (InterSearch
Group Russia)
“Moscow and St.
Petersburg are very
interesting as these
two have a substantial
number of students
besides the general
public. These two
cities also have higher
disposable income
and purchasing
power. Apart from
these, Rostov-on-Don,
Yekaterinburg, Omsk,
Tomsk, Krasnoyarsk
and Vladivostok also
have vibrant markets.”
www.apparelresources.com | JANUARY 1-15, 2019 | Apparel Online India
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