Home / Knowledge / News / Textiles / MD of Loyal Textiles disapproves notion of labour shortage
MD of Loyal Textiles disapproves notion of labour shortage
22
Jul '11
A serious labour shortage is pinching the Indian textile sector, irrespective of the region they operate from. Whether it is in the textile hubs of Ludhiana or Surat, shortage of labour is making it difficult for entrepreneurs in the Indian textile sector. This is forcing textile plants to shift to smaller towns and rural areas.

A recent study commissioned by industry body ASSOCHAM across 100 textile companies in Ahmedabad, Surat, Kolkata, Amritsar and Ludhiana reveals that, 45 percent of those surveyed said, they are using only 50-60 percent of production capacity due to labour shortage. Around 10 percent of respondents said, they are mulling moving production factories to rural and interior areas, where workers are available at low wages.

“Companies moving to smaller towns for labour is natural because if you want to get labor at the lowest costs and retain them, you will have to go where it is available at the lowest cost. I think it is ridiculous to think of owning textile mills or garment factories in urban areas anymore”, avers Mr Manickam Ramaswamy, MD - Loyal Textiles.

He adds, “We are actually located in a rural area only. Our main mill is in Kovilpatti, we have another mill 10 kms between Kovilpatti and Shahpur, then we have another mill about 20 km from Madurai, we have a plant about 30 km from Pondicherry and we have another plant in a small village in Andhra Pradesh called Markapur.

“We had a garment factory in Chennai but we moved it out about 15 years back. We did not wait for this crisis to happen. In any case, all our units are highly modernized and mechanized; even our garment units are equipped with all the modern machines and equipments. We have got everything possible.

“So, we work on productive labour to non-productive labour basis, i.e. tailor to non-tailor. Basically we work on the idea of improving productivity and do not depend on the hope of getting cheap labor and getting disappointed later on. We always pay Rs 10-20 more than the market price and provide all other comforts like good food, good residential facilities, etc.

“I would not like to call it shortage of labour; I would call it non-availability of low cost labour. Labour is available and that too plenty but, you have to pay a price. Thanks to Government schemes like NREGA, people do not want to work at salaries which are not covering their costs. We want to hire workers at pathetic wages and when we do not get them, so we complain that we are not having workers.

“Workers are available and if you pay a decent salary they are willing to work regularly, they are willing to stay with you. So, we have to rework our economics based on the minimum salary which is required by the workers. It used to be around Rs. 60-70 around five years ago, today it's about Rs. 250. So, if we work on our economics based on Rs. 250 and design our production systems accordingly then there should be no problem.

“But if we want to stick to antiquated methods of working without really looking at improving our activities, automation, mechanization, industrial engineering, optimal work conditions etc. then of course one will have all kinds of problems. Yes, labour cost in India also is going up and sensibly it should go up. How long can we have poverty!” he summed up by saying.

Fibre2fashion News Desk - India

Must ReadView All

Courtesy: The Irish News/Christian Cowan (Google)

Fashion | On 24th Feb 2017

Google & Christian Cowan create 'really blue' jeans

Google has partnered with British fashion designer Christian Cowan to ...

Textiles | On 24th Feb 2017

Pakistan's textile exports down 1.54% in July-Jan FY17

The value of textile and garment exports made by Pakistan decreased...

Fashion | On 24th Feb 2017

Suntchi, CFDA partner to give US designers access to China

Suntchi (Shanghai) Brand & Technology Co Ltd, a full-service...

Interviews View All

Pinkesh Jain
Everflow Petrofils Ltd

‘An innovative technology which India needs desperately is the...

Marazban F Velati
Sutlej Textiles & Industries limited

No training can be effective till the candidate believes in it.

Yashiki Gumber
Sahiba Fabrics

Fabric does not restrict us from fashion trends

Ashok Desai
Bombay Textile Research Association

Bombay Textile Research Association (BTRA) is a leading name in textile...

Silke Brand-Kirsch
Schlegel und Partner

Silke Brand-Kirsch, executive partner of Schlegel und Partner, a leading...

Marten Alkhagen
Swerea IVF AB

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

Karan Arora
Karan Arora

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

Tony Ward
Tony Ward

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

Pranav Mishra
Huemn

Designers Pranav Mishra and Shyma Shetty’s Huemn is known for its...

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
February 2017

February 2017

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

SUBSCRIBE


Browse Our Archives

GO


eNEWS
Insights
Subscribe today and get the latest News update in your mail box.
Advanced Search