Sivaramkrishnan Ganapathi, managing director of Gokaldas Exports, in an interview with CNBC-TV18 on Wednesday, said that there were early signs of a business shift due to the US-China trade issues.
Speaking about the market share shifting due to the trade issues, he said, “We have seen some early trends of capacity moving out of China and the beneficiaries are Bangladesh, Vietnam and India and we are seeing some traction for sure, which will have some positive bearing on the growth this year."
Talking about Icra's rating upgrade, he said, “Things are looking great. We have been successful in growing in a consistent manner and it is mainly because of the significant improvement in operational performance, which reflects in the financial performance of the company. We have a solid customer traction, thanks to our building and strengthening customer relationships."
On revenues and profits for FY20, he said, “Our growth is well on track as we had projected earlier. We may slightly improve upon it if at all. Things are looking good.”
In terms of how things are looking for garments and apparel exporters, Rathi said, “Looking at the overall textile industry, we feel that the major focus is on one of the cotton prices which are on the higher side. The cotton prices on the higher side are denting the mill owners and because of the international cotton prices going down, the spread is reducing. We expect there will be higher import of cotton this time into the Indian market.”
“Since India has a competitive advantage in terms of quality and prices, we expect that this market will improve for Indian garment and apparel manufacturers. We expect the things to improve in the coming fiscal year,” Rathi added.