Home / Knowledge / News / Apparel/Garments / Textile players give garmenting business a miss
Textile players give garmenting business a miss
24
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: Reliance Industries

Textiles | On 24th Apr 2017

Reliance’s FY17 revenue from petrochemicals up 12.2%

Increase in prices across polymers and polyester chain has...

Textiles | On 24th Apr 2017

India, Kazakhstan to increase cooperation in textiles

Indian and Kazakhstan are deliberating upon increasing cooperation in ...

Textiles | On 24th Apr 2017

GST reflects 'One nation, One aspiration' spirit: Modi

Prime Minister Narendra Modi has said that the Goods and Services Tax ...

Interviews View All

Nuno Venda
ROQ

‘There has been an increase in demand for water based inks, rather than...

Sunil Rathore
Lacoste India

‘New vendor is welcome if he offers cost, quality and timely delivery’

Abhimanyu Singh Rathore & Barbara Anna Kosiorek
Kannbar

‘Blending cultures is the true beauty of fashion, where one’s imagination...

Lynda Kelly
Suominen Corporation

Suominen Corporation is a manufacturer of nonwovens as roll goods for...

Johan Berlin
InvestKonsult Sweden AB

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

Kerem Durdag
Biovation II LLC

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

Tony Ward
Tony Ward

"You have to truly understand what your client wants, know her needs, what ...

Igor Chapurin
Chapurin

"Now we can see the Russian trend in international fashion. And Russian...

Bani Batra

Bani Batra’s couture wedding collection is inspired by traditional Indian...

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
April 2017

April 2017

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

SUBSCRIBE


Browse Our Archives

GO


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