INSUBCONTINENT EXCLUSIVE:
The second wave may slightly impact the textile sector in IndiaThe ongoing second wave of the COVID-19 pandemic in the country may slightly
ratings and Research (Ind-Ra)
The supply chain is impacted by local lockdown restrictions across many parts of the country, especially at major textile hubs including
Ludhiana, Tirupur, Bhilwara, and Surat
The lockdown has resulted in restricted movement of goods, which means non-availability of inputs such as fabric, yarns etc
with learnings from the first COVID-19 wave, a stronger balance sheet as well as liquidity compared to the fourth quarter of fiscal 2020-21,
will allow the sector credit profile to remain stable in the current financial year.In the current circumstances of the second wave, the
labour availability in the textile sector is also affected but moderately, and at much lesser severity than that during the first COVID-19
Ind-Ra states that due to strong export markets, the first quarter of the current financial year may not be a 'lost quarter' for the textile
sector.Additionally, most of the cotton textile players will have an adequate inventory given the second wave hit in April and May this
The recovery expectation varies depending upon the sub-sector.
