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Over one lakh branded garment retail outlets across the country were closed on Monday to protest the imposition of 10 per cent excise duty on branded apparel.
Large retailers Arvind and Madura, departmental stores such as Pantaloon and Shoppers' Stops and foreign brands such as Benetton and Oviesse were among the 10,000-odd retailers who downed their shutters.
Not just company-owned stores, but franchisee outlets too were closed.
Among the smaller retailers, the response was partial.
Mr Rahul Mehta, President, Clothing Manufacturers' Association of India, said, the bandh has been especially successful in cities like Mumbai, Delhi, Ahmedabad, Kolkata and Ludhiana.
According to Mr J. Suresh, MD, Arvind Brands and Retail, which had shut 400 shops across brands such as Arrow, US Polo and Flying Machine, Monday contributes 7-10 per cent of weekly sales of apparel retailers.
The cumulative loss for the industry is expected to be Rs 150-250 crore.
Optimistic on roll back
Mr Ashesh Amin, President — Apparel and Retail, S. Kumar's Nationwide, is optimistic the excise duty would be rolled back soon.
“The duty would affect any retailer with a label or tag on the garment — even those selling clothes at Rs 100. It would not only affect the retailer but also the manufacturer, because if consumer demand becomes less, everyone in the value chain is affected.
“If the duty goes through, it would perhaps be cheaper to import certain clothes from Sri Lanka or Bangladesh than make them here.
“The government is fighting inflation on food and fuel and now it is adding clothing to that.”
Later this week, apparel retailers are expected to meet with government officials. “We will take stock of the situation and take a call on Friday, after our meetings,” said Mr Mehta.
The recent political developments at the Centre with the DMK threatening to pull out its ministers from the UPA government has also caused uncertainty among apparel retailers as the Textiles Minister, Mr Dayanidhi Maran, is from DMK.
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