Gokaldas Exports cautious on near term outlook but positive on long term opportunity
News: In a media interaction on ETnow, the management of Gokaldas Exports said there are pockets of opportunity from China but sentiment in Europe is negative for prospects, going forward. Also, the impact of a recession in the US, its major market, is not yet visible but the company indicated that the order flow from US clients can be lower in Q3 as major clients have high inventory levels.
View: In July, August 2022 , the company has witnessed sustained order flow momentum from its clients in the US but there could be a slowdown from Q3 onwards due to high inventory positions of its clients. From a long term perspective, the company believes India can capitalise on the opportunity arising from the China +1 strategy of global retailers whereby they are looking to diversify the sourcing vendor base. Also, internal problems faced by competing countries likes Pakistan and Sri Lanka provide an opportunity for Indian garment exporters to garner higher share in the global apparel trade.