FY 21 was an incredibly challenging year for all of us at Himatsingka. The year beganin the midst of a complete lockdown imposed by the Central and State Governments thatsaw all our manufacturing and distribution come to a standstill. It was the first timethat our facilities had to halt production and therefore the associated impact wassignificant and unprecedented. The lockdowns severely a3ected our operations both inIndia and internationally for the first half of the financial year. Our facilitiesremained non-operational for approximately 90 days and it was only by September 2020 thatwe started witnessing some form of operational normalcy.
While we witnessed interruptions and challenges at our facilities these issues werefaced by industry at large both in India and globally. Disrupted supply chainsuncertainties and lockdowns in major international markets exacerbated operatingconditions while also creating pockets of opportunity and new demand patterns for acertain class of products. During the second half of the fiscal we remained focused onconsolidating our operations bringing back the momentum that was disturbed during thefirst six months.
The global economic outlook with the uncertainties arising out of the pandemic hasremained volatile and unpredictable. While global GDP growth forecasts for 2021 arebuoyant after witnessing a contraction during 2020 the outlook remains challenging giventhe divergence in the pace of recovery across economies that may be subject to mediumand/or long term impacts on account of the crisis.
While the impact of the pandemic eased during the second half of the fiscal there wereother challenges that surfaced during this period. Regulatory uncertainties along withheightened levels of inflation witnessed by various commodities and services exerted costpressures on the entire value chain. In particular cotton our principal raw material sawunprecedented levels of inflation during Q4 of FY 21. This was coupled withsubstantialprice escalations in the areas of energy and logistics. Mitigation measures are beingundertaken to address the impact that these factors have had on our operating performanceand the same will be carried through during FY 22. The industry was also faced with thelack of regulatory clarity during Q4 FY 21 as the Central Government was to announce arevised scheme for the remission of duties and taxes on export products. While theannouncement was scheduled to be made during Q4 FY 21 the same was made later therebyimpacting the operating performance for FY 21.
On a positive note the demand for home textile products globally has remainedencouraging. Our manufacturing facilities are enhancing capacity utilization acrossdivisions and we seem well positioned with our integrated model robust infrastructurestrong brands and global reach to enhance market share and tap emerging opportunitiesgoing forward.