Kitex Garments, a global player in the infant wear segment, has put on hold all its investment plans, considering the muted demand scenario amid uncertain market conditions in the export market.

“Any new investment plan will be finalised after evaluating the Covid-19 situation across the global markets. We are adopting a cautious approach. The board had approved investments worth ₹920 crore last year. The company has also envisaged a ₹2,000-crore investment plan by 2025,” Sabu M Jacob, Managing Director, Kitex Garments, told BusinessLine .

However, he went on to add that business volumes are gradually looking up. After a complete washout of March and April, the company has started shipping 3.5 lakh pieces per day since May, compared to 7.5 lakh on average in the pre-Covid-19 days.

The apparel industry in the United States is generally down because of the fluid situation created by Covid-19. But the infant wear market has not been seriously affected, despite a 20 per cent drop in business. This is because the majority of US customers consider these products a necessity, more like food and essential commodities in the domestic Indian market, he said.

However, the company has faced some issues in the operations of its production units because of Covid-19 regulations. Kitex employs a massive workforce of 11,000 to meet its production requirements, which gives rise to certain risks. “We managed well by totally quarantining the factory, restricting both inward and outward movement of workers,” he said.

Kitex Garments, which managed to register a business turnover of ₹1,000 crore last fiscal, has faced a production loss of around ₹55 crore in March and April, following the total lockdown in the county. The delay in availability of raw material from Tirupur, Gujarat, and Coimbatore as well as disruptions in supply chain have forced Kitex to cut down production. However, the company has done well to minimise the obstacles so as to meet the export obligations, he added.

Established in 1992, Kitex Garments manufactures cotton and organic cotton garments, especially infant wear for exports. These products find a market in the US, and Europe. The company is a major supplier to brands such as Gerber, Walmart, Carters, The Children’s Place, Amazon, and Target, among others.