Apparel exporters in Tirupur, Noida plan periodic shutdowns to reduce operational costs

Noida, May 17 (KNN) The apparel exporters in Tirupur and Noida have decided to close their manufacturing facilities for 10 to 15 days per month due to lack of international orders.

In Tirupur, orders are down 40–50 per cent from last year, whereas 80 per cent of units in Noida have a month’s worth of orders in hand. Global brands have not made any significant orders for the next Christmas season, reported ET quoting Tirupur’s exporters.

Post the recovery witnessed in textile exports in March 2023, April saw exports declining sequentially. RMG exports declined 17 per cent Q-o-Q (down 23 per cent Y-o-Y) to USD 1.2 billion, whereas exports for cotton yarn and home textile declined 13 per cent Q-o-Q (down 23 per cent Y-o-Y) with monthly run rate slipping again below the USD 1 billion mark.

Over half of India’s knitwear exports come from the Tirupur cluster. The cluster has been impacted by the downturn in important markets including the US and the EU.

In the Noida apparel export cluster, nearly 70 per cent units have just a month’s orders in hand. “Only the big units have good orders in hand but the medium and smaller units are suffering from very few orders. These units are working at 30-40 per cent capacity,” said Lalit Thukral, president of Noida Apparel Export Cluster.

Despite the lack of orders, the clothing exporting businesses in Tirupur and Noida have not yet made the decision to lay off any employees.  (KNN Bureau)