Indian home textile exporters to clock 20% growth: ICRA
The recent pandemic has bought many lifestyle changes that include people getting conscious about their hygiene and they prefer the stay-at-home option more; thus, leading to growth in demand for home textiles.
New
Delhi
The recent
pandemic has bought many lifestyle changes that include people getting
conscious about their hygiene and they prefer the stay-at-home option more. These
factors have caused a sharp increase in the demand for home improvement
products, said ICRA report. It is expected that ICRA’s sample set companies
will grow by 20-25% in FY2022. According to ICRA, the sample had reported a
decline of 18% in operating income in Q4 FY2020 but even after that, the home
textile exporters have reported a growth of 15-20% in the nine-month period
ended March.
According to
Pavethra Ponniah, Senior Vice President and Co-Group Head of Corporate Sector
Ratings at ICRA, the sale for the sample set was 25 to 40% more than the
three-year average for the pre-Covid period. She also said that the home
textile exports were one of the few segments that have recovered from the
impact of the pandemic.
As per the data,
India’s home textile product export was $5.7 billion in FY2021 which
is a 9% increase. Compared to this, the US exports increased by 14%, while on
the other hand, the exports to the other markets of the UK and the EU declined.
As per the channel checks by ICRA, the larger exporters have a robust order
backlog and will rely more on job-work and outsourcing so that they can fulfil
delivery commitments.
Source – New Kerala.com
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