A report of rating firm Crisil says that the supply chain disruptions in countries like Sri Lanka and China, could benefit Indian apparel manufacturers that could see an uptick in revenue and growth of 16-18 per cent this fiscal.
At the same time, with domestic demand and discretionary expenses normalising, companies could benefit from a higher apparel sales.
The report reads, “Normalising discretionary spends, higher realisations and sustained export demand, due to higher opportunities following supply chain issues at Sri Lanka and China, will drive up the revenue of apparel makers by 16-18 per cent this fiscal.” Manufacturers would report this growth on a strong base of the previous fiscal.
Anuj Sethi, Senior Director, Crisil Ratings, said domestic demand, which accounts for three-fourths of the overall apparel demand, is expected to grow over 20 per cent. This is on account of recovering discretionary spending and improving realisations amidst the surge in raw material prices.
He further adds that the export demand is expected to grow at least by 12-15 per cent, despite the higher base of last fiscal, as overseas players continue to diversify their supplier base in light of the economic crisis in Sri Lanka and a fresh surge in COVID cases in China, which has disrupted supply chains.
Source : https://in.apparelresources.com/