Talking to ET, Vivek Merchant, general manager,
said “Recently, we have been presenting our fabric range to renowned brands, retail, ready made garment manufacturers, exporters, buying houses, large traders. We are working in collaboration with the large textile corporates to explore the possibilities growing commercially.”
Merchant said that the cost of cotton has come down and this will help Swan leverage its current export clientele by providing quality products at competitive prices and improve its market share globally. Cotton prices are set to weaken amid slackening demand and global recessionary fears.
“A better crop outlook could also drive cotton prices lower. After touching the lifetime high of Rs 110,000 per candy (356kg) in recent months, cotton price is likely to dip to around Rs 60,000 per candy by December 2022 because of the slump in demand and the wait-and-watch strategy of the market players. However, given the volatility of the current economy, it is hard to predict whether these prices will sustain in the long run,” he added.
Commenting about the international markets, Merchant said that the manufacturing and services activity readings indicate that the economic outlook is darkening in Europe and the US.
“High energy costs because of the war in Ukraine, surging commodities prices, supply-chain disruptions because of pandemic-related lockdowns in China, and rising interest rates are increasing the risk of recession. In fact, demand for manufactured goods in the EU has fallen due to high prices, at a rate faster than they did in May 2020 when the pandemic was just taking a hold for the first time,” Merchant said.
“Due to these factors, Indian textile producers are witnessing initial signs of a demand slowdown. It’s a fact that inventory levels are high at the moment. With the weakening rupee and easing cotton prices (due to slowing demand) providing some relief to the Indian textile exporters, the international market is grappling with higher input costs, and significantly reduced demand. It will be no surprise to see the output curtailed from the international textile sector in the next few months,” he added.