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Home / Business / Textile exporters sniff gains following supply chain disruption in China after Coronavirus outbreak

Textile exporters sniff gains following supply chain disruption in China after Coronavirus outbreak

Buyers are looking for new sources after the virus outbreak in China disrupts supplies
India and Turkey are the two major producers of fabric, apart from China, which is the dominant player. BSL, which earns 60-65 per cent of its revenue from fabric exports (suitings and furnishing), expects robust sales from the overseas markets.
India and Turkey are the two major producers of fabric, apart from China, which is the dominant player. BSL, which earns 60-65 per cent of its revenue from fabric exports (suitings and furnishing), expects robust sales from the overseas markets.
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Calcutta   |   Published 01.03.20, 07:21 PM

Textile producer BSL Ltd, one of the major players in fabric, believes India may be able to grab more market share following the supply chain disruption in China after the breakout of Covid-19.

India and Turkey are the two major producers of fabric, apart from China, which is the dominant player. BSL, which earns 60-65 per cent of its revenue from fabric exports (suitings and furnishing), expects robust sales from the overseas markets.

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“The coronavirus outbreak could turn out to be a huge opportunity for us in India. Buyers will realise that they cannot do business depending on a single source (China). In the long run, they have to hedge their sourcing from other locations such as India,” Nivedan Churiwal, joint managing director of BSL, said.

BSL, which exports to 60 countries, sniffs the maximum opportunity in home furnishing for the overseas market. It sells to various customers, including retailers such as Ikea.

Industry analysts agree that there may be a long-term opportunity but it would depend on the duration of the disruption.

“If it (trade disruption linked to Covid-19) goes on for a year or so, there may be. But if China comes back to the market quick, it would be able to get back lost market share,” Abhishek Rathi, senior analyst with India Ratings & Research, said.

Many textile players have received supply enquiries from overseas players who want the shipment within weeks. “For most companies, it may not be possible because of supply constrains,” Rathi added.

India exports Rs 2,400 crore worth of fabric every month with the US, New Zealand and West Asia being some of the top buyers. Analysts said gains from the virus can only be said to occur if unscheduled orders, presumably prompted by China’s failure to supply, are repeated over a significant period of time.

Domestic focus

Aware of the ground reality of world trade, BSL, like other textile players, is also focusing on the domestic market.

Previously known as Bhilwara Suitings Ltd, BSL is one of the few major producers in the organised sector. It is now looking to revamp the identity of the 50 -year-old Bhilwara brand, expand wholesale and retail touchpoints and add a super premium suiting range.

It has set aside a budget of Rs 20-25 crore for ad and marketing spends, quadruple the retail network to 6,000 across the country in two years and introduce a super premium brand.



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