Apparel brand Van Heusen may look at sourcing from Bangladesh and Sri Lanka as that could be more financially viable, the Hindu reported.
“So far, manufacturing in India was financially viable. But with the excise duty, it may be more viable to source from Bangladesh and Sri Lanka, which are known for making basic stuff. So we may source basic formals from these countries. India has free trade agreements with Sri Lanka and Bangladesh — so the merchandise will not attract import duty,” said Mr Ajay Ramachandran, Brand Director – Van Heusen.
Currently, 90 per cent of the brand's manufacturing is done in India. Winter jackets and knits are sourced from China.
The brand plans to hike retail prices by 8-10 per cent from April 1, owing to the excise duty. With cotton prices on the upswing, there could be another price hike in seven-eight months. “The effective price rise in eight months would be around 20 per cent. This will impact profit margins by 2-3 per cent, he said.