Home / Knowledge / News / Apparel/Garments / Chennai apparel export units struggle to survive
Chennai apparel export units struggle to survive
Jun '12

Rising labour and power costs, along with stiff competition from Bangladesh, is forcing garment exporting units in the southIndian city of Chennai, famous for woven menswear including the Madras Checks, to struggle for their survival.

“Thirty three leading export-oriented units closed down recently in and around Chennai leading to job loss for approximately 45,000 people,” Mr. Ranjit P Shah, President of the Apparel and Handloom Exporters Association, told fibre2fashion.
“One reason for this is the intense competition from Bangladesh after the Indian Government allowed import of 46 apparel items duty-free into India. Bangladesh has low labour cost and high productivity advantages compared to Chennai,” says Mr. Shah.
“Local retail brands are also importing garments from Bangladesh as it is cheaper to source apparels from the neighbouring country. The cost of production in India is more due to high minimum wage and electricity problems, especially in south India,” he explains.
“To avoid full closure of apparel units in Chennai and surrounding areas, there is an urgent need to lobby with Government to save jobs,” avers Mr. Shah.

Fibre2fashion News Desk - India

Must ReadView All

(L-R) Mr Shao Bojin, Chairman of Jihua Group and Mr Rohit Aggarwal, President of Huntsman Textile

Textiles | On 28th Oct 2016

Huntsman gets into strategic partnership with Jihua Group

Huntsman Textile Effects, the leading provider of high quality dyes...

Marzoli FT6D roving frames in Sintex’s Unit 2. Coutresy: Marzoli

Textiles | On 28th Oct 2016

Marzoli roving frames erected at Sintex textile division

A total of 48 Marzoli roving frames were erected in units I, II and...

Courtesy: Polartec

Textiles | On 28th Oct 2016

Polartec innovates most breathable waterproof fabric

Polartec, the premium provider of innovative textile solutions, has...

Interviews View All

Evelyne Cholet

‘France had a reputation of being big in new ideas, but poor in marketing...

Saket Garg
Garg Corporation

The biggest challenge is lack of skilled workforce and competition from...

Abhishek Ganguly
Puma India

‘As a brand, Puma is always looking for new and innovative ways to inspire ...

Mark Paterson
Technical Absorbents Ltd

Mark Paterson, R&D manager of Technical Absorbents Ltd talks about Super...

Iago Castro Asensio
RCfil Distribuciones S.L.

Iago Castro Asensio, International Business Manager of RCfil...

Urs Stalder
Sanitized AG

Urs Stalder, CEO, Sanitized AG, talks about the increasing use of hygiene...

Judy Frater
Somaiya Kala Vidya

Among the many honours showered on Frater, including Fulbright and Ford...

Wendell Rodricks
Wendell Rodricks

"We should not compare India and the West. There are things we do that...

Yash P. Kotak
Bombay Hemp Company

One of the directors of Bombay Hemp Company, Yash P. Kotak, speaks to...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


Letter To Editor

(Max. 8000 char.)

Search Companies

October 2016

October 2016

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.


Browse Our Archives


Advanced Search