ICRA report says the apparel and fabric industry's profitability is under pressure amid several headwinds.
In an interview to CNBC-TV18, Kulin Lalbhai, Executive Director of Arvind spoke about the latest happenings in his company and sector as well as gives a check of the ground realities.
Order book on exports and interest for India as a country is strong, he said.
Don’t think there is any concern on the demand front. Currency will always create medium-term pressure, he noted.
On goods and services tax (GST) transition, he said demand has rebounded back as well as one could have hoped. The demand side remains unaffected.
With good monsoon and benign inflation, we can be cautiously optimistic about the upcoming Diwali season, said Lalbhai.
He said the unorganised market for textile has been out of the tax net but it is now trying to adapt to a completely new way of doing business. Large clusters in the segment, such as the ones in the west and the south, have all applied for GST and they are all coming on to the formal economy.
We are well positioned as far as the order side is concerned on exports, he said.
With GST and formalisation of the economy, he expects to see a very strong macro growth environment for domestic side of textile over the next few years.
For full interview, watch accompanying video...
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
