Home / Knowledge / News / Apparel/Garments / Textile players give garmenting business a miss
Textile players give garmenting business a miss
Mar '11
Despite high operating margins, textile mills that ventured in to producing clothing, are now contemplating exiting those businesses.

The latest being Arvind. The decision to quit the business is attributed to shortage of skilled labour and the cyclical nature of business, as Arvind had a workers attrition rate of around 35 percent in the apparel manufacturing sector.

According to Mr Rajendra Hinduja, MD – Gokuldas Exports, a top-notch garment exporter based in Bangalore, “Very little risk is involved in producing say around 1,000 meters of fabrics per day for a textile mill”.

“However, a garment producer faces the risk of rejects in case of a delay in dispatch or defective items. One needs to have a high-risk appetite to be in the garment production business”, he added by saying.

Mr Rajiv Dayal, MD - Mafatlal Denim is of the opinion that, the business of manufacture of garments is challenging for fibre-to-fabric producers as; “first, it requires a significantly larger permanent workforce for conversion of fabric into styled and finished garments.

“Second, it is a cyclical business, where the percentage utilization of the factory could fluctuate leading to higher business risks and inconsistent profitability.

“Third, in India, there are large turnovers in the garmenting workforce and re-training is a time consuming process and this could lead to a drop in productivity and quality, which are critical for the success of this business.

“Finally, due to its very nature, the garment business, could defocus the fibre-to-fabric producers from their core businesses”, he said.

“However, a vertical business model (fibre-garments) is always preferred by brands and retailers. There could be several other options for textile fabric producers to work in collaboration with garment producers for providing garmenting-supply chain solutions to brands and retailers”, he concluded by saying.

Fibre2fashion News Desk - India

Must ReadView All

Courtesy: American & Efird

Textiles | On 20th May 2018

A&E introduces Repel

American & Efird (A&E), a global leader in industrial sewing thread...

Archroma working with House of Denim Foundation

Textiles | On 20th May 2018

Archroma working with House of Denim Foundation

Archroma, a leader in colour and specialty chemicals, has joined...

Courtesy: Amazon

Textiles | On 20th May 2018

Amazon opening first fulfillment centre in Tucson

Amazon.com is opening its first fulfillment centre in Tucson, which...

Interviews View All

Sonia Agarwal

‘The terms eco-friendly and organic are common but everyone perceives them ...

Pratik Bachkaniwala
Palod Himson Machines

Fabric processing machines are picking up

Nitin Soni
Dolphin Jingwei Machines

Taxation policies need to be made simpler

Akshat Chaudhary

Aizome, Asia's first Fairtrade denim brand, is all set to launch next...

Rikesh Mistry

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

Mala Alwani

<div>Delhi-based fast fashion womenswear brand, Besiva, aims to bridge the ...

Giorgio Mantovani
Corman S.p.A

Giorgio Mantovani, MD of Corman, with a presence in both Milano and New...

Kerem Durdag
Biovation II LLC

Kerem Durdag, CEO, Biovation II LLC, provides an insight into future...

Johan Berlin
InvestKonsult Sweden AB

Investkonsult Sweden AB has been buying and selling second-hand textile...

Mike Hoffman
Gildan Activewear SRL

Gildan Activewear, a manufacturer and marketer of branded clothing and...

Karan Arora
Karan Arora

Bridal couture created with rich Indian heritage, exquisite craftsmanship...

Anisha Chaudhari
Threads & Shirts

Threads &amp; Shirts is a freshly-tailored concept providing men/women a...

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


Leave your Comments

May 2018

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

news category

Related Categories:

Advanced Search