Home textile exporters to show 20-25% growth in FY22
According to the report, the home textile exporters are going to show growth at a rate of around 20-25% in 2021-22 with healthy margins.
New
Delhi
The home textile
exporters are going to show growth at a rate of around 20-25% in 2021-22 with
healthy margins, according to ICRA.
This robust
performance of the Indian home textile exporters is because of the
pandemic-induced lifestyle changes which have made people more conscious about
their hygiene and have also created a culture of stay-at-home. As per the
report, the sales for the past three quarters have been 25-40% higher than the
3-year average for the pre-COVID period. It is believed that the home textile exports was the first segment that
recovered well from the impact of the pandemic, said Pavethra Ponniah, Senior
Vice President and Co-Group Head, Corporate Sector Ratings, ICRA.
The largest
market for export is the US which accounts for 60% of the total home textile
exports from the country. As compared to a 9% increase in India’s home textile
product exports of $ 5.7 billion in FY21, the exports to the USA have increased
by 4% whereas the exports to the other markets like the UK and the EU have
declined. Ponniah also said that this increase in exports to the USA is partly
attributable to the distribution model for these products. A large number of
departmental chains remained open even during the lockdown phase. Also, due to
a strong festive demand this year and favourable vaccination across key markets
are some other factors that led to a healthy environment for the Indian home
textile exporters, said the report.
ICRA also said
that the larger exporters have a robust backlog and will rely more on job-work
or they might outsource to fulfil their delivery commitments in the next few
quarters.
Source – Business Standard
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