With the festive season now behind us and domestic cotton trading at a 25-50 percent premium to international prices, CNBC-TV18 spoke to Sivaramakrishnan Ganapathi, MD of Gokaldas Exports to get a check of how 2023 is shaping out to be.
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The US market is expected to see a slowdown due to the hike in rates by the US Federal Reserve but Ganapathi says that the next financial year should see the tide turn.
“Since we focus a lot more on the US, which is the more resilient market, we get a feeling that somewhere by Q1, we should start seeing some uptick from the current slowdown levels,” he said.
Ganapathi added that the US market has been doing reasonably okay so far despite the slowdown talk.
"Even though the economists keep talking about recessionary trends in 2023 so far, if you look at 2022 till November for which we have data, retail sales are about 7 percent higher than the previous year,” he argued.
The management expects modest growth in 2023. "In a normal time, I would expect ourselves to grow at well in excess of 20 percent. But modest growth would be a single-digit percentage point. I feel that at best, we would be under that pressure till, you know, probably Q1- Q2 of the forthcoming year at worst I am saying and after that we should start seeing good growth,” the CEO said laying next year's outlook.
On outerwear contribution, the management said that this segment is steadily going up and its revenue contribution will max out at 45 percent or thereabouts. Ganapathi sees reasonably good traction in the outerwear segment.
Watch the video for more.