Worldview: Sri Lankan Factories Expect to Benefit from Bangladesh Unrest

🇱🇰 Sri Lankan and Indian factories expect to benefit from Bangladesh unrest. A report by Indian ratings agency CareEdge has characterised manufacturing disruptions caused by recent political and social instability in Bangladesh as a “golden chance for the Indian apparel sector to expand its footprint both in the short- and medium-term,” estimating that $200-250 million worth of export orders could flow into India. Meanwhile, the chairman of the Sri Lanka Chamber of Garment Exporters has forecasted that “in the short term… 5-10 percent of [Bangladesh’s] orders will come to Sri Lanka.” [Sourcing Journal]

🇧🇼 Botswana wants a larger stake in diamond dealer HB Antwerp. The African nation, one of the world’s top diamond producing countries by value, is seeking to renegotiate its proposed purchase of a stake in the Belgian firm due to the downturn in the diamond market. “We will not be injecting more capital, but we will get more shares for the same amount proposed in 2023,” said Lefoko Moagi, Botswana’s mines minister. A deal would see the country’s state-owned Okavango Diamond Company supply HB Antwerp, helping the former to gain a foothold in downstream supply chains. [Reuters]

🇹🇭 Thailand’s Indorama Ventures reports $4 billion in Q2 revenue. The Bangkok-based yarn, fibre and chemical manufacturing giant with operating sites in 35 countries on six continents has recorded the top line figures for the second quarter of the 2024 fiscal year, representing flat growth year over year but a 5 percent increase on the previous quarter. Adjusted EBITDA during the period came in at $370 million, down 11 percent year over year but up 1 percent on the previous quarter. [Fibre2Fashion]

🇹🇷 Turkey targets China-owned Shein and Temu in customs crackdown. Following similar plans or moves made by the US, the European Union and South Africa, Turkey will raise customs duty rates and reduce its de minimis threshold in a bid to protect local e-tailers from competition from overseas e-tailers. The news comes after Shein announced plans to source some of its clothes for the European market from Turkey in a bid to allay concerns over its alleged use of forced labour in China. [Sourcing Journal]

🇮🇳 Indian beauty and fashion retailer Nykaa sees Q1 profits soar. FSN E-Commerce Ventures, the Mumbai-based listed company that operates multi-brand retailer Nykaa, has reported a consolidated net profit of 13.64 crore rupees for the quarter ended June, reflecting a 152 percent year over year increase. Gross merchandising value (GMV) during the period stood at 3,321 crore rupees ($396 million), up 25 percent year over year. The digital-first company founded by Falguni Nayar in 2012 also noted it hit a milestone of reaching 200 physical stores during the quarter. [Economic Times]

🇸🇦 Saudi Arabian perfume retailer Al Majed for Oud readies for IPO. The family-owned business founded by Sheikh Ali bin Othman Al Majed in 1956 that offers more than 130 brands across its network of 285 stores across the Gulf region plans to sell a 30 percent stake through an initial public offering on the Tadawul stock exchange in Riyadh. CEO Waleed Al Majed said that the listing aims to “diversify our investor base and strengthen our business operations to accelerate our growth…both locally and internationally.” [Gulf Business]

🌏 E-commerce major Global Fashion Group sees Q2 NMV decline 12.3%. The Luxembourg-registered firm headquartered between Singapore and London has posted 285 million euros ($313 million) of net merchandise value for the second quarter of the fiscal year, driven by a 16.9 percent drop in orders. The firm is the parent company of three regional e-tail platforms: Latin America-focused Dafiti, Southeast Asia-focused Zalora and Australia and New Zealand region-focused platform The Iconic. [Fibre2Fashion]

🇸🇬 Singapore-based e-tailer Sea leader fends off TikTok in Southeast Asia. The company raised the outlook for its main online retailing arm Shopee, signalling the regional e-commerce leader is effectively encountering intense competition from the likes of TikTok and Lazada. The value of goods sold by the Shopee division will rise in the “mid-20 percent” range this year, Sea said, rather than the “high teens” pace predicted in March. The firm also posted second-quarter profit and sales that topped analysts’ estimates. [BoF]

🇨🇳 Shein hires ex-EU official to bolster lobbying as IPO nears. The China-founded, Singapore-based ultra-fast fashion e-tailer has enlisted former EU budget commissioner Günther Oettinger as a consultant to help it navigate the bloc’s policy environment, taking a more active stance toward potential regulatory scrutiny as it plans a stock market debut in London. The company faces a raft of issues including a debate whether to impose customs duties on cheap parcels and allegations of counterfeits and forced labour in its supply chain. [BoF]

🇮🇳 Indian jeweller Senco Gold posts 85% profit surge in Q1. The Kolkata-based company has recorded consolidated net profit of 51.27 crore rupees ($6.1 million) for the quarter ended June, up from 27.66 crore rupees in the same period last year. The company with a nationwide footprint opened six new stores during the period, bringing its total to 165 stores. Pointing to the Indian government’s reduction of customs duties on gold and silver, CEO Suvankar Sen said it “is expected to galvanise future demand.” [Economic Times]

🌏 Walmart credits India, China and Mexico for Q2 international sales growth. The American retail which owns Indian e-commerce major Flipkart, Walmart China and its Mexican business Walmex, has cited the three markets for driving second quarter growth, without disclosing exact contributions. Walmart’s CFO, David Rainey, said, “Flipkart delivered double-digit top line growth and more than doubled the number of units that delivered the same day.” [Economic Times]

🇮🇳 Indian fine jewellery chain PC Jeweller swings into profit in Q1. The New Delhi-based company with around 57 stores nationwide has posted a consolidated net profit of 156.06 crore rupees ($18.5 million) for the quarter ended June 2024, compared to a net loss of 171.62 crore rupees in the corresponding period a year earlier. The firm has been suffering from legal issues with multiple banks over outstanding dues. [Economic Times]

🇨🇳 Chinese menswear firm China Lilang posts H1 sales rise of 7.3%. The company that operates the brand Lilanz posted sales revenue of 1,600 million yuan (approximately $220 million) in the first half of the 2024 fiscal year and net profit of 280.1 million yuan during the period, reflecting a 3.6 percent increase year over year. [Fibre2Fashion]

🇮🇳 Indian apparel maker Cantabil Retail sees Q1 profit slip. The New Delhi-based company producing and retailing its namesake fashion brand has reported net profit of 11.4 crore rupees ($1.3 million) in the quarter ended June 2024, down from 12.3 crore rupees in the corresponding quarter a year earlier. Revenue reached 127.9 crore rupees in the period, up from 111.8 crore rupees. [Economic Times]