Written by Raakhi Jagga
| Ludhiana |
Published: July 24, 2020 12:52:09 am
Industry right here manufactures winter put on majorly throughout June, July and August. (Representational)
JULY-END was once a hectic time for hosiery and textile business in Punjab’s industrial hub Ludhiana. By this time, most industrialists would ebook their retail in addition to wholesale orders and get cracking to finish them on time. But this yr the business is staring at huge losses as a consequence of virtually 70 per cent drop in orders for winter put on within the wake of the coronavirus pandemic. Most factories are operating at lower than 50 per cent of their capacities, Ludhiana-based garment makers have revealed.
“We used to work night shifts during this time of the year. Also, material in many markets like J&K, Himachal Pradesh used to be supplied by September itself. However, this year it is still a single shift with less than 50 per cent of our workforce. Our Rs 12,000-crore winter wear industry is struggling,” mentioned Sudarshan Jain, proprietor of Sarjeevan Knitwears and president of Knitwear Apparel Manufacturers Association of Ludhiana (KAMAL).
Industry right here manufactures winter put on majorly throughout June, July and August.
Jain added, “In May, we used to organise exhibitions in Ludhiana where retail order bookings used to happen. Retailers from across the country would come here and in June, wholesalers would book their orders. Their demand used to give us an idea as to which product will sell the most the coming winter and what sort of fashion will be a hit. Based on that, we used to start our production.”
But this yr is completely different. “Buyers have placed just 30 per cent orders for winter wear this season as compared to last year,” Ludhiana-based garment maker Ajit Lakra mentioned. Given that the pandemic is displaying no indicators of relenting, there may be added uncertainty about demand for winter put on after September month.
“If winter items are not sold at retail shops, there are chances that payments may get stuck… What will you do with just 30 per cent orders? How will you bear your fixed expenses like interest,” Lakra instructed PTI.
Industry representatives additional identified that style clothes manufacturing models would bear the utmost brunt.
Sudarshan Jai, proprietor of Sarjeevan Knitwears, who says that his unit is 90 per cent into style merchandise for ladies like coats, tops, designer cardigans, jackets, has no orders in hand. He now plans to focus 90 per cent on fundamental gadgets and 10 per cent on style clothes to curtail the danger.
According to him, “Nearly 95 per cent knitwear units attached with KAMAL work on designer winter wear items, and now many of them are focusing on basics like self-knitted sweaters for men and women. Simple jackets and coats, casual woollen kurtis, leggings as these items can be purchased by customers as per their need. Yes, designing is being done in kids’ clothes as people still love to spend money on their kids.”
Akash Bansal, Director of Rage Knit, mentioned, “Our brand is popular because of our designs and we will keep that element alive. But it will be 50:50 designer and basic items which we will float in the market.”
“People do not have money. They will spend only on essential items rather than purchasing non-essential fashion wear,” Knitwear Club president Vinod Thapar mentioned.
The garment manufacturing hub had already suffered a setback with patrons cancelling or placing on maintain orders for summer time put on due to Covid-19 pandemic, mentioned manufacturers.
Rage Knit’s Bansal defined, “As of now there is a liquidity crunch in the market. Many retailers have not yet released payments of last winter season. Normally, they would do it by March-end, but this time lockdown happened in March-end and hence many payments are stuck. It is not justified on retailers’ part to hold back payments of those products which they have already sold out last winter. So, it will be more a ‘house cleaning’ for us. We will be using in-house raw material to make whatever limited designs we can make for the coming winters. As of now, no order booking has happened, hence we will be making few items as per our experience of the market’s buying capacity.”
Surinder Kumar Sharma of the Ludhiana Hosiery Garments Manufacturers and Traders Association mentioned, ”Many outdated metropolis markets like Purana Bazar, Gandhi Market, Kareempura, Sunder Nagar and so forth are outdated wholesale and retail markets. There are over 250 such retailers the place you might have manufacturers in addition to merchants operating the present. This summer time was a whole flop. Our markets cater to patrons from throughout the nation and as a consequence of journey restrictions, it wasn’t that straightforward. Moreover, shopping for clothes will not be a precedence proper now. Our summer time put on remains to be dumped inside our retailers. So, manufacturing of winter put on will probably be simply 25-30 per cent as per the projections created from the market this summer time.”
Sharma additionally mentioned that authorities’s Sunday lockdown had hit their enterprise. “Whatever little business used to happen on Sundays that too is finished. So it seems that 2020-21 will be a bad year for us.”
Ludhiana has over 20,000 hosiery, textile and dyeing models unfold in designated and non-designated areas. Vinod Thapar, chairman of Knitwear Club, mentioned, “Ludhiana is a hub of hosiery, textile and knitwear garments. We do not have more than 50 per cent labour in our units right now. As per orders, we don’t even need them right now. Labour from Bihar is ready to come whenever units start working at full capacity.”
Nearly 5.64 lakh individuals had moved to their residence states through Shramik Trains and buses from Punjab in May and June, however no more than 1.5 lakh have come again.
“Workers are ready to come back. But our units are running as per market requirements …all those small units attached with big corporate houses only have 20-30 per cent work. Rest have zero orders. They are manufacturing as per their own estimation,” added Thapar.
Ludhiana, one of many oldest textile clusters within the nation, is known for winter clothes. The clothes business right here is now looking for assist from the federal government to increase moratorium on cost of mortgage installments.
“The government will have to extend the moratorium for the industry for six months more. Otherwise majority of the units will turn NPAs (non-performing assets),” mentioned Lakra, who can also be the textile division head of the Federation of Industrial and Commercial Organisation (FICO).
With Inputs From PTI
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