Lockdowns tugging at garment inc already hanging by thread, Retail News, ET Retail

Lynn Imbier

Ludhiana: Partial and complete lockdowns in several metropolitan areas of other states have produced city industrialists, in particular all those in the garment sector, nervous. Businessmen say their customers in other states have asked them to slash down the amount of already-placed orders or delay the dispatch, and it is […]

Ludhiana: Partial and complete lockdowns in several metropolitan areas of other states have produced city industrialists, in particular all those in the garment sector, nervous.

Businessmen say their customers in other states have asked them to slash down the amount of already-placed orders or delay the dispatch, and it is really very likely that complete cancellations will observe. The purpose is reduction in product sales due to the closure of stores and malls on account of lockdowns. In desperation, some businessmen—who are dealing with customers in Delhi and Mumbai exactly where complete closure of stores and malls have been ordered—have slash down their production.

Harish Kairpal, finance secretary of Knitwear Club, suggests, “In Maharashtra, all non-vital institutions have been closed until May possibly 1 and in Delhi, very similar circumstance prevails with procuring malls shut until April 30, besides the weekend curfew. In other states as well very similar lockdowns have been carried out. Some other states are also heading to another lockdown. In this kind of a scenario, the garment market is when all over again hit, as our buyers have already begun requesting us to either delay the dispatch of the consignments by 3 to four months or slash down the original orders. They simply cannot make product sales when there is restriction on movement of individuals.”

Narinder Mittal, general secretary of Ludhiana Business Discussion boards, has got a feeling of déjà vu. He suggests, “The existing circumstance has introduced again the reminiscences of final yr, when the garment market witnessed several cancellations and unparalleled losses. Presently there is a slump in the sector with no new orders coming, and now with the customers delaying the deliveries and some even considering cancellation, we are in deep trouble. Earlier payments from customers are pending and now we have readied new orders that are not heading to be delivered, leading to a blockage of substantial quantity of dollars.”

Atul Saggar, general secretary of Clothing Manufacturers’ Affiliation, Ludhiana, is worried of stocks piling up. “Due to lockdown in Maharashtra and Delhi, exactly where some of our major customers are dependent, we have resolved to slash down our production. We do not want stocks well worth lakhs piled up in our factories. There is large chance of cancellations of a big selection of orders due to the uncertainty.”

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