Monday, April 5, 2010

Where does the industry go from here?

Wage hike, labour shortage because of alternate and better opportunities elsewhere and skilling the unskilled are now the new constraints for the garment industry in addition to the ones which are already chokers to growth – recessionary trends, low prices, the hardening rupee and reducing incentives… Where does the industry go from here… I think Bihar, manufacturing polyester based daily wear such as shirts, trousers, A-line skirts or improving productivity are the three options!
All three are not easy solutions, they require full use of resources and commitment… which is a better option and should be taken up first is difficult to decide…

BIHAR is the growth story… if one has to relocate factories then why not Bihar… the law and order situation is as good or as bad as any other state of the country, labour is not an issue since most of the operators in the north are from Bihar and the chances of wage increase is still a far fetched dream. Further, the Bihar Government is developing an apparel park near Patna at Bihta, the land prices of which are rock bottom… good enough reasons to shift.

If we wish to grow, it is important that we work with daily wear products that are mass produced and mainly in polyester for easy maintenance… As of today India has a negligible presence in the global polyester clothing chain and hence there is tremendous scope for growth… In the US, India’s share in cotton products is 6.17%, while in polyester based garments it is barely 1.59%. The question is do we have the right technological expertise and scientific skills to handle these products. I think the same can be developed… Did we have the skills to repair a a technologically-advanced Maruti in the times of Fiats and Ambassadors… But Maruti overcame the limitation by developing and training the mechanics, providing them with proper scientific tools… the success that it got is history.

Lastly, it has been suggested many a times that StitchWorld should conduct a study of factories to review various processes and systems and publish the findings as a wake up call… but I firmly believe that the industry already knows its shortcomings, they do not need a study to drive home the point… what it does need is an honest acceptance of the areas that need improvement and self retrospection on how to achieve higher productivities.

Deepak Mohindra
Editor-in-Chief

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