NCOVID-19

Business Impact for Apparel companies

 Covid in Numbers
Agenda Scale and Scope of Impact

Mitigation Plan

Post Covid world and Key Asks

COVID in Numbers

Sample text Most Resilient Sector

1B

271
700
50% Small Domestic
Appliances(SDA)
Of consumer plan to resume 1 out of 3 consumer plan to
140 Spike in temporary demand
purchase across categories right increase their original budget to
FY18 FY19 FY20 FY21 exceeding planned purchase
after the epidemic purchase healthy appliances

What are retailers saying What are consumers saying..

70% 59%
1) Epidemic
2) Food Safety &
health
3) Healthcare
Do not plan to exercise cost cutting 2 out of 3 retailers are well-stocked in Are feeling “confident” 1 out of 3 consumer remain 4) Inflation
5) Decline of domestic
measure inventory to meet consumer demand Despite current situation positive about the country’s
economy
and purchases over next 1 month economic situation

50%
Plan to enhance more advertising and 1 out of retailers surveyed will extend
2X Home Delivery
Services as new norm
for ecommerce
Double the number of consumer in tier 3 &
promotions to boost sales new channel, e-commerce and below cities shopping online for the first time 1 out of 2 consumers surveyed expect home
WeChat commerce during this period compared to rest of china delivery service for online shopping in future
 Supply Side Impact
Parameter Low Med High Comments

Price variation of key The prices have remained stable, however the demand
raw materials has been impacted

Production shutdown
The sector is one of the largest employers in the country ,
employing over 45 million (direct jobs) and sizeable
number of contract Laboure's as well. The nationwide
lockdown has led to temporary closure of factories and
layoffs have already begun among low-wage workers.
Labor force

The sector has been grappling with profitability issues

Cash flow constraints due to a sharp decline in yarn exports

Garment manufacturers can look at local sourcing

Supply chain disruption opportunities .

China is the fourth largest trading partner with

india for purified terephthalic acid (PTA) and
Import (if applicable) largest trading partner polyester staple
fibre ()
 Demand Side Impact

Parameter Low Med High Comments

Lockdown/restrictions Lockdown implemented recently – limited impact so far

impact

Consumer Sentiment If the situation persists, the impact would be higher

With a drastic fall in global demand and an export ban on

Export(If applicable) certain critical raw material (those used to make masks for
example ) the impact on exports is considerable
Financial Impact

Best Case Likely Case Worst Case

900
800 2020 1,000
900 2020 1,000
900 2020
700 800 800 800 900 800 900
600 700 800 700
600 600 600
500
500
500 600 500 600
400
400 400
300 400
300 400 400 300 400
350
200 200 200 300 300 300
100 200 100 100
0 0 0
Jan Feb Mar Apr May Jun Jan Feb Mar Apr May Jun Jan Feb Mar Apr May Jun

2020 2020 2020

Unit XX XX XX

Users XX XX XX

Rev XX XX XX

EBITDA XX XX XX

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Impact Response Plan

Area Response Plan

Cotton fibre Cotton prices are expected to take a hit

Man made fibre With Chinese production lockdown , the imports of MMF fibre would be impacted prices of imported MMF used
for high value production is expected to rise by 25-30 per cent over the next two quarters

Yarn Yarn accounts for 29 per cent of India ‘s text tile trade. With a decline in demand in both global and domestic
market , the yarn production is expected to contract by 12-15 per cent over the next two quarters

Fabric Fabric production is expected to decrease owing to decline in exports and stagnation in apparel /home textile on
domestic market is yet to be witnessed

Home textiles Home textiles industry has had limited impact of the COVID – 19 induced global downfall

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Post Covid World

Key Highlights
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Move towards
variable cost models
Building sensing and
04
05
control tower capabilities
‘ Cash is king ’
03
for
businesses Supply chain
06
‘ Digital ’ gets resilience is key
02
a real push

07
Building
COVID - 19 agility
Shift towards 01
localisation IMPACT
Key Asks

Financial Help
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Resource Management
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Technology Investment
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Infrastructure
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Corona Virus Icons
Hygiene Icons
Anti-Infectives & Antibody Icons
Medicine Infusion Bag Icons