Sarah Jacob, Madhvi Sally and Sutanuka Ghosal from ET Bureau have reported that though cotton prices are down 30% in two months, large clothing companies have no plans to reduce prices and pass on the benefit to consumers for propping up falling demand.
The report highlights the fact that raw material costs have been the biggest concern for apparel makers since August as cotton prices increased over 50% due to a global production shortfall. The raw materials account for around 80% of the garment production cost.
The report quotes Mr. Ashesh Amin, President - Apparel and Retail at SKNL, as saying that they did not increase prices when the raw material prices were going up, and therefore the price decsrease will not be across the board, but maybe considered in selected categories.
The report also quotes Mr. J. Suresh, MD and CEO of Arvind Lifestyle Brands and Retail, Mr. Pankaj Jain, retail head of Kewal Kiran Clothing, and Mr. Komal Kumar Jain, Chairman, Duke Clothing.
S K JINDAL (SR.G .M)
GINNI INTERNATIONAL LIMITED
NEEMRANA(RAJ)
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