Fengtai, Nike’s main foundry, announced that starting from the 12th, it will independently suspend operations at a total of 3 factories in India for 10 working days. The director of Fontai pointed out that at present, India’s footwear production lines account for more than 20% of Fontai’s total production capacity, and the production capacity will be supported by other overseas factories after the 10-day shutdown.
India plays an important role in the global supply chain. The recent out-of-control epidemic has affected vaccines and pharmaceuticals. Not only is Asia’s third largest economy facing a stagnant recovery in important industries such as clothing, shoes and apparel, and financial services, but the world is also facing a crisis of material shortages.
On May 12, Nike’s main shoe manufacturer Fengtai (9910-TW) announced:
Starting from the 12th, a total of 3 factories in India will be suspended for 10 working days. The director of Fengtai pointed out that the Indian footwear production lines currently account for more than 20% of Fengtai’s total production capacity. The 10-day suspension of production capacity will be provided by other overseas companies. Factory support.
Fontai pointed out that the Indian government has not implemented a large-scale lockdown plan in response to the epidemic. This time, Fengtai has voluntarily suspended operations at a total of 3 factories in India for 10 working days until May 23. This is an voluntary suspension for the purpose of protecting employee health and epidemic prevention considerations.
Fengtai pointed out that in terms of Fengtai’s overseas production capacity allocation, the Indian factory’s production is simple The footwear production lines of 3 factories in India account for more than 20% of Fengtai’s total production capacity.
Fengtai originally planned to expand the production capacity of overseas factories including India by 7-7 this year 10%. The director of Fengtai pointed out that the factory expansion projects in India and other regions have not stopped yet.
Fengtai’s revenue in the first quarter of 2021 was 19.337 billion yuan, with a gross profit margin of 24.42%, a quarterly decrease of 0.77 percentage points and an annual increase of 2.53 percentage points. The net profit after tax was 1.64 billion yuan, a quarterly increase of 35.54% and an annual increase of 28.9%. The net profit per share was 1.86 yuan.
Fengtai is optimistic that market demand will gradually return to the right track, and the company has also restarted factory expansion and According to the production expansion plan, the overall production capacity in 2021 is expected to increase by 7-10% compared with last year.
The epidemic in India is out of control, impacting global industries
India’s Ministry of Health announced that on Tuesday (May 11), there were 329,942 new confirmed cases of COVID-19 and an increase of 3,876 deaths. For example, the total number of infections in India so far is approaching 23 million, and the death toll has exceeded 250,000.
India’s seven-day average number of new confirmed cases reached 390,995, setting a new record.
The epidemic situation in India is out of control, which makes people who were originally optimistic about its double-digit GDP growth this year Economists are preparing to cut their forecasts. Last year, the Modi government implemented a nationwide blockade to prevent the epidemic, and India fell into its first recession in nearly 25 years.
Currently, many countries have banned Indian flights from entering, and Indian crew members have traveled to ports around the world. It is blocked and unable to meet the needs of crew exchange. Platon pointed out that this may cause a serious crew shortage and “disrupt the global supply chain.”
India is the world’s major textile exporter, and this industry is facing severe labor shortages Suffering. India is the second largest exporter of leather clothing and the fourth largest exporter of leather products in the world. Last year, the epidemic severely hit the Indian leather industry. India is also the largest footwear manufacturing country after China, producing nearly 3 billion pairs of shoes every year.
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15 people were infected, and many Taiwan-funded shoe and clothing factories started to evaluate evacuation plans
According to multiple Taiwanese media reports, the new crown epidemic in India has become serious, and about 150 Taiwanese employees are still stranded in India.
According to the observation of local Taiwanese companies, the infection rate in Indian companies is about 20 %, which means that 1 in 5 people will be infected.
It is confirmed that 14 people are infected with the epidemic and 1 severe case, and the withdrawal plan is evaluated and initiated
According to Hong Kong and Taiwan media reports on May 3:
Currently, there are 113 Taiwanese companies investing in India, 150 of them are still in India, and the others have invested in India since last year Return to Taiwan. Among the Taiwanese staying in India, 14 are infected with the epidemic, one is in serious condition and is currently in the ICU ward, four others work for foreign businessmen, and one is a spouse.
However, on issues such as whether to withdraw Taiwanese businessmen and Taiwan officials, Chen Zhengqi said that it should be There will be a meeting this afternoon, and there are different opinions on whether to withdraw it.
Chen Zhengqi pointed out that some Taiwanese businessmen reported that it would be safer not to move now because India is very dangerous. There are risks on the way to the airport, on the plane and during the flight. Therefore, some Taiwanese businessmen believe that they would rather stay in India if they only have mild symptoms.
As for the relevant voices, Chen Zhengqi said that all ministries and commissions have jointly grasped the situation and will to evaluate.
A southern textile factory withdrew its entire Taiwanese army last week
SomeoneThe major textile factories in the south have withdrawn all Taiwanese workers first, and they all came back last Saturday. At present, because the factory is only in the installation stage, there are not many people, so the Indian employees have stopped working for 14 days. Fortunately, the Indian factory Taiwanese workers and Indian employees , there is currently no reported epidemic. We are also assisting with the current demand for masks from some Taiwanese businessmen. (Note: Taiwanese cadres: In the early years, Taiwanese employees were sent to mainland factories to serve as leaders, so they were called “Taiwanese cadres”, which is the abbreviation of “Taiwanese cadres”. Management positions were filled by Taiwanese, and ordinary positions were filled by mainlanders. People do it, this is the standard configuration of Taiwanese companies.)
India Textile Environment
In addition, one of the leading shoe manufacturers also withdrew from Taiwan last year. Although another well-known shoe manufacturer has not withdrawn from Taiwan, it has assessed that the process of returning to Taiwan is also very dangerous, and the factory has strengthened relevant epidemic prevention measures and is operating normally.
In terms of the mechanical and electrical industry, TECO pointed out that in terms of sales, there are some local blockades The impact of policies; and freight shipping schedules also have some impact, but they have been properly dealt with. The current factory construction in Bangalore is still ongoing and has not been affected. Although an employee was infected with the epidemic and has recovered, we will continue to control the epidemic.
The impact of the outbreak in India on the cotton and textile and apparel industries
According to the latest data released by the Ministry of Health of India, the epidemic situation in India is still severe. According to the latest data from the Indian Ministry of Health on May 13, in the past 24 hours, there were 362,727 new confirmed cases of COVID-19 in India, with a total of 23,703,665 confirmed cases; 4,120 new deaths, and a total of 258,317 deaths.
Indians harvest cotton
As the world’s second most populous country, India has absolute influence in many industrial fields.
1. Cotton
India is the world’s largest cotton producer, accounting for about 24% of the world’s output in 2019/20. According to a counselor’s report released by the United States Department of Agriculture, India’s cotton planting area may drop by 2% in 2021/22. Indian cotton is currently in the sowing season and has gradually begun sowing in northern India. Under normal circumstances, full sowing will begin at the end of April.
But it seems that the domestic epidemic in India has led to labor shortages and reduced cotton farmers’ willingness to plant. , or affect the cotton sowing process, leading to a further decline in cotton sown area.
For India, the textile industry is equally important. In India, the textile industry is the second largest industry after agriculture, providing employment to more than 35 million people (Corporate Catalyst India). From 2018 to 2019, India’s textile export revenue was close to US$37.5 billion, accounting for 11.4% of total exports (Televisory Analytics).
2. Textile and clothing
India is the world’s largest cotton producer, the world’s largest jute producer, and the world’s second largest silk producer. Its yarn production capacity Accounting for 22% of the world. The textile industry accounts for about 15% of India’s total export revenue.
Since the second half of last year, the epidemic in India has gradually heated up, and many large export-oriented Textile companies are unable to guarantee normal delivery due to the epidemic. In order to ensure that supplies are not affected, European and American retailers have transferred many orders originally produced in India to China.
For example, in orders from India to China, towels, bed sheets and other products The order volume is large. At the end of last year, some manufacturers had already stated that the number of transfer orders they received would be in the second quarter of 2021.
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