Gokaldas Exports encountered a challenging business environment in fiscal 2022. The Delta wave in the first quarter, Omicron wave in the early fourth quarter and logistics disruptions throughout the year were testing times. High raw material prices for both cotton and manmade fiber products, the war in Europe and inflation in key markets were additional headwinds. Going forward, the company anticipates that the free trade agreement (FTA) with the UK by year end and the FTA negotiations with Europe will present a good opportunity. With a diversified customer base, the company anticipates a higher growth of its non-top five accounts. With consumer getting back to work and socializing, Gokaldas sees woven products gaining traction.
Global garment retailers are asking Indian exporters to reduce apparel prices as cotton prices have dropped 16 per cent and the rupee has devalued against the dollar. If recessionary trend in key markets of US and Europe continues, there could be a reduction in apparel exports for spring 2023, which can negatively impact the order book of Indian apparel exporters. Meanwhile Indian exporters are trying to mitigate the impact as they look to tap new markets in Latin America, Australia, Japan and UAE.
