India’s knitwear manufacturing hub Tirupur may conclude Q4 ’20 (October-December) with a sharp 15 per cent increase in order volumes, making it one of the best quarters in recent times.
The growth has come owing to pent-up demand, anti-China sentiments, appreciation in Euro against Rupee and a business resilience that have collectively benefitted the garment manufacturers of the region in the festive season.
As far as value-wise growth is concerned, it is set to see at least 10 per cent growth in the fourth quarter of the calendar year 2020 – according to Raja Shanmugham, President, Tirupur Exporters’ Association (TEA).
Even though more than 2 months were lost due to lockdown caused by pandemic and subsequent production impact owing to labour shortage, the demand thereafter has been so strong that it may top last year’s turnover – Rs. 25,000 crore.
The depreciation of Rupee is also helping exporters see more revenues. The Rupee which was at 78.97 against the Euro last year is now hovering around 89.47. This is a huge advantage for Tirupur garment makers considering the EU is South Indian region’s largest apparel importer.
While talking to Apparel Resources, TR Vijaya Kumar, Managing Director, CBC Fashions, Tirupur informed that his company has not been affected due to second or third wave of COVID-19 in Europe.
“As festive season has been on in the EU countries, the buyers have not refrained from placing orders despite the fact that COVID-19 is still an issue in countries like UK, Germany, France and Italy etc., all because shoppers are out on the streets or shopping through online mediums,” shared Vijaya Kumar.
Tirupur is even more bullish about the growth Indian domestic market has been witnessing in last 3 months. The region exports around 60 per cent of its garment products, while the remaining stock goes to the domestic market.
“Stocking up by domestic brands has been high throughout the quarter and we do expect domestic supplies to overtake exports, if the current demand continues,” added Raja Shanmugham.
