RMG operating margins to improve to 8.0 per cent

In fiscal 2022-23, the operating margins of RMG makers are expected to improve by 75-100 basis points year-on-year to 7.5-8.0 per cent though they will continue to be lower than pre-pandemic levels of 8-9 per cent. With prices of key raw materials such as cotton yarn and man-made fibre rising 15-20 per cent, RMG makers will be able to partially pass on input price hikes to customers as demand rebounds and operating margins improve.

The largest availability of raw materials alongwith world’s second largest spinning and weaving capacity enabled the India to grow domestic exports by 95 per cent from January-September 2021, says Narendra Goenka, Chairman AEPC.