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India’s textiles and apparel sector production is expected to decline by 10-12 percent in the April-June quarter owing to the coronavirus pandemic, according to a study by KPMG in India.

Demand shocks are expected to hurt India’s textile exports over the next few quarters, the study observed, assessing the current and potential impact of coronavirus on the sector.

“With lockdown in China, price of man-made fibre imports is expected to rise significantly, resulting in higher price for some goods in the domestic market. If the current scenario persists over the next few months, the domestic retail market would also be impacted significantly,” said the study.

From a manufacturing perspective, employment would be impacted owing to limited demand in both domestic and international market, it revealed.

Besides, assessing the coronavirus impact on the country’s micro, small and medium enterprises, the study noted that contractual, wage labour will get impacted more leading to layoffs, unrest, lowering of purchasing power.

With Europe and the US being affected the most, there will be a huge impact on exports as global demand is expected to come down significantly, it said on outward shipments from MSMEs.

A study by the All India Manufacturer’s Organisation (AIMO) estimates that about a quarter of over 75 million MSMEs in India will face closure if the lockdown due to COVID- 19 goes beyond four weeks and this figure is estimated to touch a whopping 43 percent if the situation extends beyond eight weeks, said the KPMG report.

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In 2015, it had raised Rs 250 crore in series C funding round from Zodius Technology Fund and Khazanah Nasional Bhd, the investment holding arm of the government of Malaysia and USD 6 million from Unilazer Ventures in 2013. Ratan Tata has also invested an undisclosed amount in the company.

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The market for accessories such as cufflinks, bags, wallets, belts is also quite large. Accessories today are at the centerstage of men’s wardrobe and the mid-segment of the men’s accessories market will continue to grow. On the luxury end of the market, interesting changes are visible. There is a growing demand for personalized and bespoke watches and accessories.

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This year, Zivame has raised Rs 60 crore in funding as part of a bridge round, led by Zodius Technology Fund and a group of high net worth individuals, and Rs 10 crore in an extended series C Round from Allana Investment and Trading Company.

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