Token strike today to cost garment storeowners dearly; city alone to suffer loss of over Rs 50 crore
Token strike today to cost garment storeowners dearly; city alone to suffer loss of over Rs 50 crore
Shopaholics, stay put, for you will not be able to buy clothes anywhere in the city, or the country for that matter, and you have no one else but the finance minister to thank for it. The clothing industry has called an all-India bandh against the 10 per cent excise duty on branded readymade garments proposed by the Union Budget 2010-11.
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Having their say: A poster at a garments store
Nearly one lakh shops across the country will remain closed today as part of the 'No Sale Day'. And even though this means that retailers will experience a Rs 500 crore loss nationwide, they are not backing down.
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United we stand Kishore Biyani, CEO of Future Group, expressed his support for the pan-India remonstration. "I think we have to show solidarity with the bandh. After all, we are part of the trade," he said.
The company's clothing brands include John Miller, Lombard, Bare, DJ&C, Buffalo and RIG. So you know what to tick off on the shopping list, in case you were planning to venture out shopping. However, if you're one with a penchant for foreign brands, you may go forth. Sources said that imported garment brands are not affected by the proposed 10 per cent excise duty, and as such, have not been approached by organisers to participate in the bandh.
Anurag Singhla, secretary, South India Garment Association, justified the decision to call the bandh. "We believe in sitting across the table and finding an amicable solution. But our smaller members are extremely agitated with the proposed duty and we plan to take up their cause."
The trade and industry bodies also plan to lobby consistently to get the government to withdraw the excise duty on garbs. "We will visit Delhi next week to meet Union Finance Minister Pranab Mukherjee, the Union Finance Secretary, and officials from the Central Board of Excise and Customs," Singhla said.
Meanwhile, sources say that approximately 5,000 shops in the city will remain shut, which will cost retailers across the city a shortfall of over Rs 50 crore. While some would consider the retailers' move as foolish, retailers said that they would rather face the brunt of the protest and save themselves from future losses.
"People have asked us why we chose to remain shut, but this move will surely attract the government's attention. The losses we will face are huge, but we needed to take such harsh steps to protect our business and also save our customers from further costs," said Viren Shah, president, Federation of Retailers Traders Welfare Association.
Does it make sense?
However, many skeptics think the protest today will not make any difference as few people shop on Monday. Refuting this claim, Shah said, "Most small retailers keep their shops shut on Sundays and Monday is the first day of week and many people choose to shop on this day. Additionally, now is the time when discounts are announced and we experience maximum sales, but because of the bandh we will experience a great loss."
Industry speaks
Due to the proposed imposition of excise duty, imports have become cheaper and the local Indian industry will be adversely affected. We will shut shop as a token protest so that the government hears our voices.
-- Nikhil Chaturvedi, Managing director,Provogue India
Yes, all our outlets across the country will remain shut. We would like to express solidarity with the bandh.
-- Govind Shrikhande, Managing director, Shoppers Stop
If there is a unanimous industry bandh, then I guess we will support it.
-- Pradeep Hirani, Chairman and managing director, Kimaya Fashions
Our 200 outlets all over country will remain closed on Monday to support the bandh.
-- Kewal Jain, Managing director, Keval Kiran Clothing (Killer Jeans)
I do not know what my office has decided and I will be able to give you an answer only by tomorrow.
-- Chetan Shah,Managing director, PJL Clothing India Ltd (Pepe Jeans)
We have got 28 stores all over India and our garments sections would remain closed to express solidarity with the bandh.
-- Vinay Nadkarni, Managing director, Globus Stores
1 lakh Number of garment shops in India that will be shut today
5,000 Shops in Bangalore that will join the strike
With Inputs from Bobby Anthony, Varun Singh and Madhusudhan Maney
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