2017 is ending and now we are approaching 2018, the year which was full of many twist and turns. As a garment manufacturer what is your perspective on the year that just passed and what is the strategy for the year 2018. How do you think the industry will change in the post GST era?
Ithink we have not been able to make the Government understand regarding urgency of restoring GST and duty drawback rates. As far as I know me and all my friends in the industry are declining business and the impact of the same will be reflected in the first quarter of the year. You will notice a lot of close downs especially small and medium exporters are suffering the most and it has to be considered that 90% of the garment industry consist of small exporters.
Right now when even the big exporters are facing the wrath of current situation you can very well understand what will happen to small exporters. We have declined business worth Rs 30 to 40 cr because while earlier we had support of 13%, and good companies and bottom line of
5%, now the loss is 7 to 8% which is not in balance sheet so rather than accepting order and bearing losses we are closing lines.
Sudhir Dhingra, CMD, Orient Craft Limited
2018 it is going to be very dynamic year I am optimistic about it, as the Government is working with alignment in timeline of industry, there are challenges but we will pass through. Exports are hit in last the last five months and this is the time we need to learn from our competitors like Bangladesh in terms of productivity. Instead of expanding right now our focus is to work on productivity and work on our manufacturing strengths.
Shreyaskar Chaudhary, MD, pratibha Synex, indore
Ihave already warned the Government that we need the drawback rates like earlier we are facing very hard times and we cannot look up to 2018 in a bright way if the same trend continues.
Virender Uppal, Owner, richa Global
See the market situation is very tough and we expect good times now. We had so far not worked on marketing and now seeing the market situation we have started working on, product innovation, new type of yarns, fabrics and knits. Apart from that we are exploring new markets and customers in countries like Japan unlike earlier when the only target was US and EU markets. We are also working on automation but we have not gone to the next level because right now the priority is to work on sustainability rather than moving on to new products.
Ruben J Swamidoss, CEO, Century apparels, tirupur
The orders are not materialising, buyers are not finding India any more attractive and are switching to China, Pakistan, Bangladesh and Vietnam. There were so many products where Ludhiana did not had any competitors even China was not able to compete; but now they are moving to new countries. Huge amount is blocked in GST, our cash flow is blocked and we are not able to pay to workers and all these factors like GST, duty drawback rates and rosl.
Narinder Chugh, Million exporter, Ludhiana