Source: Financial Express, Jan 05, 2021
After an increase in purchases by domestic buyers, the textile industry in Gujarat is now witnessing encouraging export demand from Europe, USA, Australia and New Zealand.
The textile industry went through a tough period from April to July 2020 following the Covid-19. Now, however, demand is high on both the domestic and international fronts.
“From August, textile units started functioning again amid scattered orders from domestic buyers. By Diwali, most textile manufacturers got many orders from all across the country.
Not only were manufacturers able to exhaust unsold inventory, but also the entire textile value chain, especially in Ahmedabad and Surat, experienced unprecedented business opportunities,” Gaurang Bhagat, president of the Ahmedabad-based New Cloth Market, said.
He said that from December 2020, home textile, cotton and synthetic fabric manufacturers started getting exports orders too.
Bhagat, who is also the trade committee chairman of the Gujarat Chamber of Commerce & Industry (GCCI), claimed that some importers from the US, Europe, Australia and New Zealand have decided to source textiles from Indian suppliers instead of China, Pakistan and Turkey.
He said the industry is also benefitting from the textile exhibition FABEXA 2020, in which participants from 52 countries took part. Organisers were forced to hold the exhibition online, but the efforts seem to be translating into real business, Bhagat said.
Sanjeev Sancheti, CFO Welspun India, said that domestic textile players are getting extra export business as global brands are finding it risky to depend on suppliers from a single country due to the pandemic. “China being the dominant supplier is obviously losing some part of supply to India. This new situation is advantageous for smaller textile players.
Welspun, being a big company, already has long-term supply orders. However, we are expecting a significant upside in the flooring textile space,” Sancheti said. Anand Prakash, general manager of Ahmedabad-based Nandan Terry, said his company recently received export orders till June this year. “Retailers in Europe, US and other markets have run out of stock and need to create inventory for four to five months, which is a huge quantity. Suppliers in Pakistan and Turkey have capacity restrictions. In the case of China, there is a trust deficit due to the outbreak of coronavirus. Hence, the Indian textile industry is benefitting,” Prakash said.