Stitch World Editorial Issue October 2016

The GTE exhibition in Bangalore and GARTEX exhibition in New Delhi were held simultaneously and still were able to garner visitation, this probably is an indication of increasing depth of apparel manufacturing industry in India.

Over the years StitchWorld reported continuous increase in visitation from non-metro cities and small- and medium-scale domestic players at various machinery exhibitions, which is unabated.With Ministry of Textiles trying to take the industry to north-east, the states inviting industry veterans to establish their factories, enticing them with lots of benefits and even few of the established players venturing outside India, are also the signs of maturity... I am personally visiting the north-eastern states as well as Orissa and Jharkhand to talk to the politicians and officers, and I am glad to see the change in their attitude towards the industry...

I am quite happy to see the depth and breadth of printing solutions being displayed at both the exhibitions, which is probably indicating entry of Indian players assembling the digital textile printers in India. While direct-to-garment (DTG) and sublimation printing is domain of garment manufacturers, quite a large number offering direct-to-fabric (DTF) technology signifying a war with analogue fabric printing which is the domain of textile mills. I look forward to similar spirited display of the same at ITME India in December 2016.

While the seminars have become stereotyped and boring these days, the 4th TANTU seminar which I chaired was a ‘game changer’ one. The seminar for the first time brought together the manufacturers (converters) of technical textiles on a platform to explore and deliberate. I am happy to see the energised discussions amongst panel members and a clear roadmap of collaborative working between the industry and the academia are probably the ‘value’ that can be generated from seminars in future.

Stitch World Editorial Issue September 2016

The latest edition of GTE at Bangalore was quite a huddle affair. Most of the companies were represented by their senior managers like ITC, Texport Industries, Madura, and this is just tip of the long and impressive list of visitors. However, this does not mean that the owner-level visitation was missing. Right from Indian Designs, Golden Seams, Gokaldas Images (from Bangalore) to Sree Santosh Garments, Tirupur and Global Mode and Accessories, Delhi-NCR were represented by their owners, creating quite a buzz among the technology suppliers. What emerged from the various discussions I had with many of them was that companies in Bangalore have created niches in their respective specialized categories based on product development as the growth engine. Also, most of the companies were happy with their growth and very upbeat of the future…

This was in contrast to the feedback I have been getting from exporters in Delhi-NCR, who have had a bad S/S ’16 season due to many reasons, among which the prime reason is the slowdown in Europe, resulting in even more demand for tighter prices… I have even heard that a company doing business of around Rs. 75 crore has lost a major account worth Rs. 50 crore because the buyer wanted a price reduction of around 20 per cent (US $ 3.25 to US $ 2.5) and has since shifted the orders to Vietnam.

Another very strong fact that emerged from my discussions at GTE was that very few exporters are willing to move out of their comfort zone, despite increasing cost of production in Bangalore. The farthest they are ready to go is to the border of Karnataka or coastal Andhra that too because the Government is pursuing them very pro-actively.

Technology providers believe that the migration into new states is a must for the garment industry to grow and many of them claim that they are supporting companies that are willing to make the move. Another strong point made by the stalwarts of the technology industry is that automation alone is not the answer to labour issues… They emphasize onb the need to balance automation with motivation.

Also too much automation is not the solution, it has to be selective automation on those operations where replacing the labour makes sense. After all it is about replacing labour wages that cost ‘rupees per month’ as against western countries where the equation is ‘dollars per day’.

I was also happy to see the equally good response at the inaugural Gartex exhibition held at Pragati Maidan, Delhi. Though the fair was small and focused mainly on value-addition technology that too mostly digital printing with huge participation from all leading players, the attention it attracted was worth noticing. It only goes to show that digital printing is still an opportunity area for many.

An interesting comment from one of the participants that fascinated me, was that exhibiting at the iconic Pragati Maidan was a matter of prestige. In fact, the location was also partly responsible for the huge response… Good infrastructure no doubt adds value to an exhibition and the first-time professional efforts of the Gartex team was appreciated.

Stitch World Editorial Issue August 2016

The global apparel manufacturing map is changing, and alongside old destinations some new areas/regions are fast developing, aided by location advantages, trade agreements, buyer’s interest and low-cost of production. Also changing is the centre of R&D for sewing technology...

With Western Europe and Asian powerhouses (Japan) of sewing machine manufacturing giving up on R&D due to stagnant market demand, and China becoming the epicentre for manufacturing of technology, the evolution of sewing machine development virtually came to a standstill. Until recently the focus of every machine manufacturer was to make cheaper, more energy-efficient and more sustainable machines. No one was even thinking of developing breakthrough technology!

But a few years back, Typical of China presented to the world a completely new innovation with its X-Feed system, which has since then been appreciated and awarded at many technology platforms for its path breaking innovation. In 2014 we saw the development of activeseam from Merrow Sewing Machine, US which again changed the way we perceive sewing. Both these offerings are fundamentally new, and are either comprehensively enhancing existing possibilities or creating new possibilities.

The most recent innovation to hit the sewing industry is ZARIF double chainstitch from Uzbekistan. The new stitch type has great practical implications, promising to re-define the de facto standard of sewing. In this issue we have covered this invention in detail and hope that some large multinational sewing technology manufacturers will grab the opportunity to commercialize this innovation.

Even as the spurt of innovations in sewing excites me, also fascinating is the quest for sustainable production and energy-saving options that is pushing the industry to experiment with new concepts. On my recent visit to one of the most technology-savvy Vietnamese garment manufacturing companies, I was surprised to spot giant fans in their laundry department, which prompted me to explore more on this interesting cooling option.

Relatively unknown in the garment manufacturing scenario, High Volume Low Speed (HVLS) fans are a highly efficient and power saving way to keep any large space cool. I am sure during your many travels abroad; some of you may have spotted these gigantic fans at the airport, but never thought about having them in the factory… In this issue we have given a rundown on HVLS, and I purposely refrained from presenting the attractive ROI figures due to many parameters currently unknown. I am sure you will enjoy exploring this technology in your factory in near future.

Another area of development that never seizes to hold my attention is the growing intervention of IT in garment manufacturing, particularly on the production floor. Not many in the industry really know or appreciate how already exciting ‘apps’ can make their production process so much more systematic and consistent. The article ‘Mobile Apps for Garment Industry’, put together by Team StitchWorld, will be a refreshing read for many of you, and I will not be surprised if some of you will actually want to download a few of these apps and check them out. I will surely look forward to your experienced feedback on the same.

StitchWord Editorial Issue July 2016

The month of June has been like a roller coaster ride with some good news punctuated in-between the events that are disturbing and reason for concern. But the best news first... Apparel Resources launched its flagship brand Apparel Online in Vietnam this month. It was a proud moment for the team and the warm response that the magazine received from the local industry, the textile and garment association and the Indian expat community in the country was an icing on the cake.

There are many Indian expatriates working in Vietnam garment industry, leading both buying offices and factories. The feedback I got from them only makes my resolve firmer to explore Vietnam and present it to the world as the next big sourcing hub of Asia.

The other news that makes me very happy is the appointment of Smriti Irani as the Union Textiles Minister of India. Coming very close on the heels of the ‘Special Package’ announced by the Union Cabinet for the apparel industry, I sincerely hope that the industry will finally get its due recognition through a combination of firebrand leadership and timely policy interventions including some relaxations in labour laws that have been a long standing demand from the industry... However, I do hope that she is not diverted to look after UP politics.

The announcement indicates that finally two things have been clearly understood by the Government – the enormous capability of this sector to generate employment, and the other is that the apparel export sector is not to be clubbed together with handloom.
But among these reasons to rejoice, the exit of Britain from the EU is a matter of deep concern for many exporters as the Pound fell 15 per cent in just a few days riding on negative business sentiments. Exporters whose payments are yet to come will be hit hard, unless they had anticipated and hedged the risk in advance or negotiated payments in Euro…, which I doubt many have done!

‘Brexit’ also means that the negotiations with the EU for FTA will have to start afresh... Many also believe that with the UK out of the EU, the FTA would not be as impactful. Of the US
$ 16-17 billion apparel exports from India, Europe accounts for 45 per cent, within which the UK holds the largest share of 40 per cent. For made-ups, the share of Europe is 20-25 per cent, of which the UK forms 15-20 per cent.

The most worrying development however has been the eruption of terrorist activities in neighbouring Bangladesh. After the terror attack on a cafe in the elite locality of Gulshan in Dhaka that left 20 hostages dead, most of whom were foreigners working in the country, put us all under shock... But the firing and blast at Eid prayers have left the country as well as its well-wishers numb. This will certainly put fear into everyone and buyers may start working with factories closer home or at safer destinations.

Is Bangladesh going the Pakistan way...? Will an industry that is roaring to grow be ‘killed’ by anti-human forces...? I hope not. I have always propagated that the Indian sub-continent is a thriving hub for garment sourcing with each country having its own strength making for one comprehensive region..., but if the terror attacks in Bangladesh are not nipped out soon, we could be getting into an era of business boycotts that would impact the whole region.

StitchWord Editorial Issue June 2016

The way Ethiopia is being promoted by the US retailers and the World Bank, it seems it will not take much time before the country develops into a major sourcing destination...

I have not seen or heard of many Indian companies moving out of their comfort zones to establish factories outside the country... Arvind Mills with its denim plant, Indorama with its polyester plant and beating them is Kanoria Chemicals & Industries which has already inaugurated a denim factory, the first in Ethiopia, with an annual capacity of 12 million metres; and Raymond with its garment factory, and many more have already started due diligence and have assigned people and resources to the project...

What surprised me even more is the interest of Bangladesh entrepreneurs, many of whom are seriously contemplating starting factories there, and why not! The country is young and full of anticipation, offers lot of scope for investment in cotton cultivation and hydro energy, a special duty-free access to the US through AGOA and EU market under EPA, besides competitive labour wages (around US $ 50), improving infrastructure and an industry-savvy Government.

If that is not enough to entice the businessmen, then there are US retailers and brands who are taking delegations to Ethiopia with a promise to fill their factories. A 27-member garment exporter’s team has been selected for an investment trip to Ethiopia from Bangladesh; and last I heard was that DBL, a US $ 250 million exporter from Bangladesh, has already earmarked US $ 100 million investment and factory to begin production in late 2016.

Well-known company of Egypt, Velocity of an Indian entrepreneur Sidharth Singa has already started production in Ethiopia with around 2,000 employees… He has plans to take the head count to 10,000 employees. Alameda Textiles has similar plans to take the head count to 11,000 from 5,500 today. The list goes on… It all sound very exciting and I will surely give you my update in the next couple of weeks with a story on latest developments in Ethiopia.

I was in the USA recently to attend the Texprocess Americas at Atlanta. It is always exciting to meet friends and colleagues from around the world and catch-up on latest trends in market and technology. This time I met many interesting people in the e-commerce and bespoke segment.

These are the two areas that are growing and many retailers/brands are aggressively looking at these options to attract customers who are increasingly becoming difficult to please. Technology providers are also making efforts to keep pace with new challenges in the segment. Another segment that was under debate and direction for constant innovation is Robotics in apparel manufacturing... This issue carries an analysis of some of the interesting technologies that drew attention.

The issue also takes a deep look at how to handle concerns of first-hour productivity by StitchWorld after much deliberation with industry experts in the article Combatting First-hour Productivity Woes. A new series has been initiated from this issue onwards, appropriately titled TechRead, which will update our readers on books, both recent and classics that can help run factories more efficiently by brushing up your understanding of both management/production techniques and technologies.

StitchWord Editorial Issue May 2016

‘Industry 4.0’, is a name that I first heard at TEXPROCESS Germany in 2015, to lure the fourth generation back into apparel manufacturing. And I am now at TEXPROCESS Americas to witness some of the disruptive technologies that the concept is indicative of. It is said that 70-80 per cent of jobs in the present format will disappear in the next 20 years and there will be a lot of new jobs, but it is not clear if there will be enough jobs left in the apparel manufacturing. It may seem that the time is too far away, but the impact of it will be felt much sooner...

Look at what happened to Kodak’s 170,000 employees which used to sell 85 per cent of all photo paper worldwide. Within just a few years, their business model disappeared and they got bankrupt due to digital camera. Welcome to the 4th ‘Industrial Revolution’…

Software will disrupt most traditional industries in the next 5-10 years. Uber is just a software tool, they don’t own any cars, and are now the biggest taxi company in the world. Airbnb is now the biggest hotel company in the world, although they don’t own any properties. How much time would you give the software solution and the hardware (robot in this case) to understand the suppleness of the fabric and also to pick and align and sew all parts together?

Already the computer arm has been built which is doing few of the operations and also the computer designing. Virtual sampling of the garments is taking away months of labour time...; now the process can be achieved in real time. I have access to many articles in which it is claimed that the jobs in law (lawyer), medicine (general medics and surgeons), nursing, drivers, insurance agents, etc. will be lost to computers.

The 3D printing technology deserves special mention since the price of the 3D printer is coming down and also it will become 100 times faster, and the first casualty would be the spare parts industry... It is claimed that by 2027, 10 per cent of everything that’s being produced will be 3D printed. Imagine all major shoe companies will start 3D printing of shoes... The traditional concept of fibre to fashion might just change; synthetic wearables will be produced directly from 3D printers without going through fibre to fabric process, which will turn out to be a ‘wasteful’ activity! The possibility of dyeing a fabric without water is already happening in some parts... Self-cleaning garments are already here; just few shakes will do the same job of litres of water! Waterless (or water mist-based) dyeing and processing of fabrics and garments will be common in coming years... There are many other areas that are undergoing transformation and ‘Industry 4.0’ may actually be on the way!

In the meantime, Asian countries are still struggling with challenges that are basic. In India where apparel manufacturing has always been a male-dominated domain, though ironically women operators are a preferred lot, few women have broken free of the gender stereotype and are successfully manning the production floor. StitchWorld talked to three such women who believe that they are equal if not better than men on the shop floor... Enjoy the article ‘Women who broke gender stereotypes in apparel manufacturing industry’ and let us know a few more who deserve to be applauded for the work they are doing.

After the series on whether HR is becoming more important than Technology, which received tremendous response from our readers, we are initiating a new debate – Are we overdoing welfare at the cost of human development? Also a must-read, our industry expert Anand Deshpande, Founder & CEO – Admaa Consulting, talks about shop floor control in apparel production in this issue.

StitchWord Editorial Issue April 2016

I have been saying time and again for a long time now that the technology providers need to come forward to support small and medium manufacturers to make them more productive and efficient, just like they did for the garment exporters in the late 1980s and early 1990s.

There is no better platform to understand it better than at garment technology fairs happening around India. And true to expectations, the recently concluded GTE was visited mostly by the small manufacturers, not only from Delhi and around, but also from faraway places like Indore, Meerut, Varanasi, Jaipur, Kolkata and even from small centres in the south of India.

The fact remains that India has just 200 top garment manufacturing companies that account for around 70% of the exports from this country and only 20 domestic manufacturers worth mentioning in the domestic arena, and these elite companies are already in the radar of the technology providers, who service them well.

I am not saying that they should not lure the top-end companies; all that I am driving at is that these top-bracket companies don’t need to be at local fairs. They sponsor their trips to international fairs to show them their latest machines. This time around 120 companies have got sponsorship from their Japanese principals for JIAM.

The fairs in India are relevant for the smaller companies or job-workers who want to grow but fail because, for one, they do not have enough managerial skills to grow; and secondly, lack technical support. In both these cases, I think the technology suppliers can play a major role and ignite the second phase of development in the Indian garment manufacturing industry!

Another strong belief that I have is that today, digitisation, more than automation, is the need of the industry that has put basic technology in place… To justify automation, one needs to have the right volumes to get a decent ROI. I am sure the technology suppliers will have many more reasons to make you go for automation, but for me it is primarily about saving on labour and achieving certain quality, which with all due respect is also achievable by a good and trained operator. Of course, since the labour is quite cheap, letting go off a few of them will not make a substantial impact on the cost.

Now, digitisation of the organisation is altogether a different matter… It helps increase quick delivery, offers better price to the customer through better managed business, and helps achieve higher productivity and efficiency. Although everyone agrees that digitisation is important, but a mistake most companies that are getting into digitisation commit while imbibing the IT technology, is investing in creating a strong front-end which impresses all, but fails to deliver. What is required is an equally strong back-end interface to support the front-end.

All international companies have now allocated huge budgets to make the entire company go digital and these budgets are divided smartly over the entire chain from front-end to the back-end for optimal results… The right synchronisation of people and solutions is the answer to take the company towards a path of growth. You may get an order directly in your ERP system with a copy to all departments. But how well it is understood by the people responsible and how efficiently, regularly and diligently they pick up the required directions to execute the style, is entirely a different matter. The smooth and effective translation of communication and quick action on the same is what makes an organisation and defines the success of a digital initiative.

Achieving excellence in the manufacturing of a product is one thing, but ensuring that systems are in place to guarantee that the deliveries are on time and pre-production goes as per schedule, is another thing all together.