Massive 84% dip in textile sales, finds study

INDIAN TECHNICAL TEXTILE ASSOCIATION CHAIRMAN SUNDARAM SAID THE CENTRE’S ORDER FOR 20.2 MN PPE KITS HAS HELPED SOME OFFSET HUGE LOSES

NEW DELHI: The apparel sales have plummeted to a historic low of 84% because of the Covid-19 pandemic and the lockdown imposed in late March to check its spread, a Clothes Manufacturing Association of India (CMAI) survey of around 1,000 factories has found. Only 22% of the factories were functioning by the May end while 40% of them manufactured personal protection equipment (PPE). Over 83% of the factories surveyed with global marketing research firm’s AC Nielson’s help reported sales of under 5% sales in May compared to the same month last year.

Rahul Mehta, the chief mentor of CMAI, cited the survey and said the apparel market was worth ~6.5 lakh crore in 2019 and they estimate it to shrink by 15% this year. He said in April-June quarter, most brands and retailers would be unable to achieve over 15- 20% of their 2019 firstquarter sales.

Mehta said the industry, which contributes 4 to 5% to India’s GDP, employs close to 12 million people. “It is our estimate that approximately 50% of labour force is migratory,” he said.

Union textile ministry officials said the demand was at an alltime low with even the government unable to sell its own stocks.

A textile ministry official said there is no demand right now. “Only 10% of the stock has been sold in the last 15 days. The export market is dwindling as well. Luxury products are not selling.”

The official said the ministry has not conducted any assessment of losses but added stocks were piling up at mills even as the Centre on May 30 released details of the first of a three-phase plan to lift restrictions imposed to stop the Covid-19 spread.

Indian Technical Textile Association chairman Dr Sundaram said the Centre’s order for 20.2 million PPE kits has helped some offset huge loses. “At ~635 for a [PPE] suit, the order for ~2.2 core [20.2 million], has pumped [~] 1,400 crore into the sector over the last three months.” He added this is nothing compared to losses.

That nearly 70% of the workers employed in the industry are migrants has added to its woes as the lockdown led to their massive exodus from cities.

South India Mills Association secretary-general K Selvaraju said there will be at least 30 to 50% fall in consumption. “Most migrants have returned home and will only be back after the monsoon. It is likely that a semblance of normalcy will return to the industry in September...”

Former Confederation of Indian Textile Industry (CITI) secretary-general D K Nair said there will be at least 50% revenue loss and restarting the industry will be especially tough.

CITI has written to Indian Banks Association seeking measures to help the industry.