Home / Knowledge / News / Apparel/Garments / Adversities cause several apparel units to close down
Adversities cause several apparel units to close down
28
Dec '10
Factors like lack of efficiency, weak economic fundamentals and penalty imposed on delayed delivery, have lead to the closure of around 40 percent of the apparel units in Pakistan all the way through 2008 till now.

Only those units, functioning under the direct supervision of their owners have managed to survive during the trying period.
Owners of only those units who exercised a good hold over their units and production activities managed to survive by bringing down the wastage ratio, while ensuring compliance of the necessary system controls. Also, only those exporters who had booked orders as per their capacity have been able to timely deliver their orders.

However, closure of the apparel units had no effect on the overall knitwear and garment exports of the country either in terms of value or volume, as the competent units succeeded in covering the loss that occurred due to closure of other weak units.

Experts say that it is the high mark-ups which has caused the garment and knitwear units to shut down over the last three years.

Furthermore, the units that had managed to survive in spite of the rising financial cost, failed owing to the sudden rise in the yarn prices as they had booked their orders at a lesser price. It was not possible for the manufacturers to continue further as the situation was beyond their control.

Majority of the entrepreneurs made no efforts to improve their efficiency, but these inefficiencies got adjusted against a swift fall in the rupee value. The industry collapsed during the recession because of the raw material prices and energy costs which soared to touch new heights.

The units, which worked on improving their efficiencies to match the best global standards, had substantial savings in good times and they took apposite decision regarding conservation of the energy so as to minimize the effects of rising costs of energy.

A number of units were required to close down after they booked orders which they were not able to fulfil. Delay in production forced the exporters to ship the goods through air cargo to meet the delivery deadlines. Where air cargo costs 15 times more than delivery by sea route and it even causes the exporter to incur a net loss of up to 60 percent.

Fibre2fashion News Desk - India


Must ReadView All

India’s garment imports from Bangladesh up 56% post-GST

Apparel/Garments | On 12th Dec 2017

India’s garment imports from Bangladesh up 56% post-GST

India has imported $87.4 million worth of readymade garments from...

Coats acquires yarn manufacturer Patrick Yarn Mill

Textiles | On 12th Dec 2017

Coats acquires yarn manufacturer Patrick Yarn Mill

Coats, the world’s leading industrial thread manufacturer, has...

Trade & consumers want MDR free digital payments: CAIT

Apparel/Garments | On 12th Dec 2017

Trade & consumers want MDR free digital payments: CAIT

Transaction charges like the merchant discount rate (MDR) applicable...

Interviews View All

Rahul Bhadani
Looksgud

Navigating through catalogues is a bit hasslesome

Veronique Lee
Modavanti

‘Sustainable fashion is trending upwards, slowly but surely, as people...

Mukesh Agarwal & Rajesh Agarwal
Madhuram Fincap Pvt Ltd

Increasing prices and lack of demand main issues facing industry

Rikesh Mistry

Jupiter Comtex Pvt Ltd, established in 1973, started its textile machinery ...

Harmeet Singh

New Delhi-based Jogindra Industries Private Limited provides an assortment ...

Anupam Arya

<div>Jaipur-based Fabriclore Retailing Pvt. Ltd. is attempting to revive...

Iago Castro Asensio
RCfil Distribuciones S.L.

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

Marten Alkhagen
Swerea IVF AB

Marten Alkhagen, Senior Scientist - Nonwoven and Technical Textiles of...

Mohammad Hassan
Biax Fiberfilm

About one in every 20 patients picks up an infection while hospitalised....

Prathyusha Garimella
Prathyusha Garimella

Hyderabad-based designer <b>Prathyusha Garimella</b> is known for blending ...

Aditi Somani
Aditi Somani

Aditi Somani specialises in luxury fusion wear with international cuts and ...

Vaanee Bhatia
Gritstones Clothing

<div>Delhi-based Gritstones Clothing offers quality and exemplary style...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

December 2017

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

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
69.2%
No
12.1%
Skip
18.7%

Total Votes: 91

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
61.5%
No
30.8%
Skip
7.7%

Total Votes: 91

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
86.8%
No
9.9%
Skip
3.3%

Total Votes: 91

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
81.3%
No
8.8%
Skip
9.9%

Total Votes: 91


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search