Within 50 days of the lifting of quota on textiles, Indian garment exporters are expecting a jump of about 50 per cent in their sales for the quarter ending March this year compared with the corresponding period last year.
With international retail chains like Sears and Marks and Spencer setting up operations in the country, their interest in India as a major sourcing destination has become apparent.
"Large retail chains are sourcing 2-3 per cent of their overall business from India. This is going up after Indian manufacturers increased capacity," said Sudhir Dhingra, chairman and managing director, Orient Craft. At this rate, India's garment exports could go up from $6 billion this year to $8 billion next year, he added.
His company, which posted a turnover of Rs 517 crore (Rs 5.17 billion) last year, is expecting to close at Rs 700 crore (Rs 7 billion) this year. "The company has bagged orders worth Rs 130 crore (Rs 1.3 billion) during the past one week itself," Dhingra said.
The Rs 700-crore (Rs 7 billion) Abhishek Industries Limited is expecting a 50 per cent growth in sales value for the quarter ending March compared with the corresponding period last year.
"Even the capacity for the next quarter is sold out," Rajinder Gupta, managing director, Abhishek Industries Limited said. Pearl Global is also looking at a 50 per cent spurt in sales by March end. Pearl is a supplier to retail chains such as GAP, J C Penny.
"With US being huge in China, European companies are looking at India as a counter-balance. Chains like Sears and Marks and Spencer have already started sourcing from India in a big way," Deepak Seth, MD, Pearl Global Ltd said.
Maral Overseas Ltd, the export arm of L&J Bhilwara group has recently bagged orders from two US customers. "We are also looking at a few orders from European customers and are expecting an increase in volume of 25-30 per cent this quarter," Shekhar Agarwal, managing director, MOL said.
But even as the volumes go up, exporters feel that it is important to liberalise labour laws.
"The labour laws will have to change for India to be able to maintain its price advantage," Dhingra said
Unbridled growth
The growth story
- Garment exporters are expecting a jump of about 50% in sales for the quarter ending March this year compared with the corresponding period last year
The global factor
- International retail chains like Sears and Marks and Spencer have set up operations, and are sourcing 2-3 per cent of their overall business from the country
What the future holds
- India's garment exports may go up from $6 billion this year to $8 billion next year
