Demonetisation lowers sales, raises textile inventories in Q3

Recovery seen in Q4, companies continue focus on enhancing cash flow

After a strong start this festive season, textile and apparel manufacturers and retailers suffered a sharp contraction in demand due to the liquidity crisis following demonetisation of high value currency notes in November 2016.

If the latest study by Edelweiss Securities is an indication, India's leading pure fashion and lifestyle company, Aditya Birla Fashion and Retail (ABFRL), has lost Rs 100 crore in sales across all its textile business verticals due to demonetisation. The producer of India's most admired apparel brands such as Louis Philippe, Van Heusen, Allen Solly, Peter England and Pantaloons has posted 4.8 per cent growth in revenue