Industry And Cluster | News & Insights

CMAI Monthly Newsletter – October 2019

Published: November 6, 2019

Author: TEXTILE VALUE CHAIN

•Executive Summary

The apparel IIP was valued at 161 in August 2019, recording a decline of 4% as compared to that in July
The apparel CPI has remained constant for the past five months at a value of
The apparel exports in August 2019 stood at US$ 1,262 million, showing a decrease of 8% from July 2019 and of 2% from August The apparel exports to the largest market USA showed a steep decline of 13% in Apr-Aug 2019 as compared to that in Apr-Aug 2018. The exports to other major markets including Germany, UAE, Spain, France and UK have also declined.
The apparel imports in August 2019 stood at US$ 127 million, which is 3% lower than that in August 2018 and 16% higher than that in July Apparel imports from Bangladesh, the largest apparel exporter to India, has increased by 17% in Apr- Aug 2019 as compared to that in Apr-Aug 2018. India’s imports from Hong Kong and Vietnam have also increased.
Analysis of financial filings of select apparel manufacturers and fashion brands & retailers for Q1 FY 2020 over Q1 FY 2019

highlights the following:

Most of the companies have shown an increase in their operating revenue
Growth in Operating Profit Margins (OPM%) for majority of the companies is also very high with Gokaldas Exports and Pearl Global showing an increase of 3 and 4.6 percentage points, respectively.
The increase in OPM% of fashion brands & retailers is mainly because of a change in regulation by Ministry of Corporate Affairs*.

Apparel Index of Industrial Production (IIP) Update