However, the Red Sea crisis has a differential impact. Players operating in sectors like textiles, chemicals and capital goods may not be immediately impacted because of better ability to pass on higher costs, or because of a weaker trade cycle. But a prolonged crisis over the next few quarters can make these sectors also vulnerable as working capital cycles would get stretched with orders put on hold, CRISIL noted in the report.

Source: The North Africa Journal January 26, 2024 13:38 UTC