Opinion

Message from Group's Chairman

We started 2018 with a lot of hope and enthusiasm so that we could put the developments of 2017 behind us. We wanted to continue to display the same resilience that the industry had shown over the last seven decades to continuously get bigger and better. I am happy to report that despite several challenges still looming over our industry, we still continue on our determined progress towards growth.

One of the biggest deterrents for us over the last one year has been the Goods and Services Tax (GST). After sustained efforts by us and other industries, the Government did announce some duty drawbacks in January 2018, but the textile industry was sadly left out of the list of industries which got some relief.

The government has steadily reduced the incentives for exports, while reducing the barriers to imports. It is a huge achievement of our industry that despite these constraints, textiles still contribute almost 15% of India’s total exports. One of our neighbouring countries, which is the provider of cheap garments to many big brands across the world, has increased its production by 50% because they are able to push their products into India easily now. The primary reason is that imported garments come under the 5% GST slab, whereas domestic players effectively pay a higher rate because there is no provision for refund of excess input tax credit as per the inverted duty structure. We welcome the increased allocation for ROSL and ATUFS in this year’s budget, and hope that some of the backlog can now be cleared. 

The news is not all gloomy, though. We are seeing a lot of support from the government in several growth schemes which we hope shall provide a much needed impetus to our industry. We especially welcome the Technology Upgradation Fund Scheme, the Powerloom Sector Schemes and the Skill Development Schemes. The Integrated Textile Parks are expected to act as catalyst for the overall development of the textile industry. LNJ commits to stand shoulder to shoulder with the government in all its efforts to support the domestic textile industry.

I am also glad to share that the HEG performance has been good. I compliment the team for your sustained efforts that has helped us retain our position of pride and we continue to do good with very prestigious clients into our fold. We are also trying to watch the power sector carefully where we have a stake and would take the best decisions in the interest of all. 

The hour before dawn is the darkest, and these dark days too shall pass. All of us at the LNJ Group have seen several storms before, and together we will successfully get through these difficult times as well. I urge you to put your best foot forward and work like a well-oiled machine, with single minded focus. Each of our departments will have to work in tandem to achieve the common goal. Tough times never last, only tough people do. So let us put our heads and hearts together to ensure that we can continue to chart a successful trajectory of growth in the coming months as well.

I take this opportunity to thank your families who have been strong pillars of support to you at home when you have devoted your heart and soul to your work.

With best wishes,

Ravi Jhunjhunwala