Sivaramakrishnan Ganapathi, MD, Gokaldas Exports, says this year on the low base of last year, there is a growth. Also, the retail-led demand continues to pull up the sector and there is also a move from Western companies to source more from India and that is getting more pronounced when the demand is coming back, so that also is helping us to see more traction. So, overall, in Asia, India, and Bangladesh would see some more growth
As per reports doing the rounds, the centre seems to be planning to bring in some of the textile products like t-shirts, innerwear, etc, under the PLI scheme for textiles. Tell me, if this inclusion were to come in, how does it help you?
Sivaramakrishnan Ganapathi: It will create fresh investments in the sector, so that is good news. And I see that there should be a demand-pull going forward for the next three to five years. So, after an inventory-led low de ..
would like to ask you a larger question. We are getting feedback from the sector that the textile and apparel sector is turning around very well on the ground in terms of demand, in terms of the raw material scenario. Can you tell us what exactly is happening?
Sivaramakrishnan Ganapathi: So, if you track the retail demand, it has been secularly growing in the western world. So, for India, the major demand centres are North America and Europe. And in both the ..
So, this year on that low base of last year, there is a growth, that is point number one. Point number two, the retail-led demand continues to pull up the sector and there is also a move from Western companies to source more from India and that is getting more pronounced when the demand is coming back, so that also is helping us to see more traction. So, overall, I feel that in Asia, India, and Bangladesh would see some more growth. Vietnam is also maturing. Given its high-cost structure, compan ..
Can you be a little bit more specific in terms of Gokaldas Exports as to what the financial implications would be? Is there any particular segment that you believe would benefit the most on the back of this?
< ..
Sivaramakrishnan Ganapathi: So, the segments that we focus on are women's fashion, outerwear, and sportswear. We will continue to focus on those segments. We are also doing a lot of knits now and embellished knits, so that will continue to be a focus area. We are seeing growth across all of these product categories. For us, a 15% growth should be possible organically, that is how we are looking at the business unfolding over the next two to three years.
What about any challenges? Is there anything that you are maybe anticipating in meeting the new PLI scheme requirements?
Sivaramakrishnan Ganapathi: Let the PLI scheme details come out, then we will know how it is configured and if there are any challenges. But other than that, in India, the usual challenges continue, which is around the availability of labour in certain segments or certain areas and rising costs because the Indian rupee has been fairly stron ..
Some experts or peers that we have been speaking with as well have spoken about the need for a different minimum entry level for the garment sector compared to other textile sectors. Just wanted to get in your thoughts as to what you believe is the requirement given that unorganised players command about 60%.
Sivaramakrishnan Ganapathi: This sector is a big employment generator. For a crore invested, this sector employs almost 70 people. So, it is one of the ..
I want to talk to you about your recent acquisition. You did a fundraising as well. Is it the right view to look at FY26-27 as possibly the big year for you when all the efforts would start coming together? Can you shed some light on that?
Sivaramakrishnan Ganapathi: Yes, it will take a year before all these acquisitions will also start clocking in at the margins that I would like them to be and by then, we will also have some clarity on the fabric mill inves ..
Anything that you are expecting by way of specific incentives or policies in the upcoming budget that could support textile exports?
Sivaramakrishnan Ganapathi: I think, policy continuity will be great. So, the sector has certain support in terms of RoSCTL, etc. As long as there is a policy continuity, that is more than sufficient. I do not think we need anything more than that. PLI would certainly help in creating more investments and creating more jobs for ..
Source Name : Economic Times