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HAVE YOUR SAY
Write to Apparel Resources , B-32 , South Extension-1 , New Delhi ( 110049 ), India or email : editor @ apparelresources . com next season ,” bemoans Uday Sehgal , Director , Mariko Plus , Noida .
Though , everyone unanimously agrees that profits have dwindled and no new blood is coming into textile exports , however not everyone sees this as negative . “ There is now a barrier to entry into our industry , so it is difficult for new players to get in . This means that exporters who are fully compliant under international standards have a huge opportunity to grow ,” argues Deepak Seth , Group Chairman , Pearl Global . He adds , “ Our industry has a huge opportunity to grow in these tough times , especially since China is slowly exiting the apparel space .” The fact that China is no longer on a growth path in apparel exports is evident from its declining growth in the segment , though it is still the biggest exporter in the textile basket .
TARIFF WAR A THREAT FOR THE FUTURE …
Current scenario of the US , China , and India in regard to duties is getting complex by the day ; industry believes that this trade war that has been unleashed is going to spoil the entire business . “ None of the stakeholders of our industry is taking this matter seriously while it is going to impact more seriously in future ,” argues Rajiv Kapoor . But few as of now agree with him . “ Globally there are not many challenges , as the environment seems to be getting better except for some rhetoric trade war news , but that is not going to have any negative impact on us , if only this may help us if we can be more competitive ,” analyses Rajeev Tyagi . How things will play out is still anyone ’ s guess , but all eyes are on the situation and many hope that India can benefit from China ’ s loss !
RELIEF FOR EXPORTERS ; GST REFUND BEGINS …
In a major relief to apparel exporters , across India , the process of GST refund has finally started in good flow . Most exporters across India accepted that they have started getting their refund while some were also of the view that the process has been speeded up and they will soon receive the amount .
Bangladesh ’ s apparel exports to India saw a steep climb of 111 % during the July-March 2018 period . What could be the reasons behind this sudden surge of Made in Bangladesh apparels in India ?
“ Some of the exporters might be receiving GST refund but none of the exporters in my circle have so far received any communication in this regard .”
– Rajiv Kapoor , MD , Affordable Exports
“ There is business , but only for survival as margins are not there and we can just run our machines but can ’ t generate the profits which can push us for further business .”
– Uday Sehgal , Director , Mariko Plus
Some finance / account officials of export houses also confirmed that they have started receiving orders regarding the refunds and soon payment will be received .
Meanwhile , AEPC Chairman HKL Magu informed that nearly 50 per cent of refund has already reached the apparel exporters . “ Out of approximately Rs . 4,000 crore of refund that belonged to apparel exporters , Rs . 2,000 crore has been released so far . The process has been speeded up as far as Central Goods and Services Tax ( CGST ) is concerned while the process of refund for State Goods and Services Tax ( SGST ) is comparatively still slow .” According to officials , some of the exporters who are lacking on proper documentation , are still facing issues .
Yet , many exporters claim that only targeted companies are receiving refunds and a majority of the smaller exporters have seen no movement in this direction . “ Some of the exporters might be receiving GST refund but none of the exporters in my circle have so far received any communication in this regard . The irony is that agents are approaching us and assuring us that they can get the refund back , but we don ’ t want to pay commission to them for our money ,” states Rajiv Kapoor .
SURVIVAL TACTICS …
In the meanwhile , factories are making efforts to keep business moving , looking at ways to remain competitive . “ Business is down from last one year and it is expected to remain low at least for next oneand-a-half years . To survive , we are focusing more to better serve our existing clients . Also , rather than thinking like a manufacturer , we are thinking now as a customer and trying to do our best to make a product easily sellable ,” shares Hitesh Sadh , Partner , SK International ( Export ) Co ., Mumbai .
On similar lines , V . Gopal Krishna , MD , Sri Sairam Clothing , Tirupur adds , “ To survive we are focusing more on specialisation , product development and even investing in value addition machinery to produce fashion goods in-house . Demand in Europe , as well as South America , is good .”
Many companies are upbeat about the movement and indications coming from the European market . “ Our core markets are South Africa and Russia and we work with regular buyers of these markets . As far as Russia is concerned , we did not see any positive impact on orders in relation to Football World Cup . But I feel that in future , there will be some improvement as Europe and Russia are giving indication of good demand for tees ,” shares N . Krishnamoorthy , Partner , SV Knits , Tirupur , a Sedex-certified company which is doing products for men , women as well as for kids .
Giving an insight into new shifts , Charan Jeet shares that while earlier they were doing just woven garments , like most of the other exporters , they have now added denim bottom for export as well as domestic market . “ The investments have been made , but so far there is no benefit of the same . Yet we are hopeful that this investment will give positive results in the future ,” adds Charan Jeet .
Exporters , though not too confident of the future , are keeping a brave front . Vijay Agarwal sums up the mood when he says , “ Nothing has changed in the industry of late after two difficult years . Without level playing field and with costs going up , I don ’ t see how this industry can grow or even survive for long !”
20 Apparel Online India | JULY 1-15 , 2018 | www . apparelresources . com