Apparel Online India 1-15 July' 17 | Page 48

Madura Clothing working on the concept of ‘ satellite factories ’
Are small buyers ’ visiting India declining ?
INDUSTRY WIRE

Madura Clothing working on the concept of ‘ satellite factories ’

As labour scarcity is increasing in all apparel manufacturing hubs across India , some of the companies are coming up with interesting solutions and one of them is the concept of ‘ satellite factory ’. Aditya Birla ’ s Madura Clothing is using this model in an impressive and effective way as currently the company has five such units in nearby villages of Bangalore , while two are still under process . These satellite factories are like ‘ micro manufacturing units ’, where only stitching operations are done .
As Bangalore has lot of other work opportunities apart from garmenting , labour shortage is a strong issue here especially for big and organized factories . Therefore , satellite factories are a big support in this scenario .
Every day , cut pieces from centrally located big units are
Devadas P M , Assistant VP , Business Excellence , Industrial Engineering , Sustainability & Safety of ABFRL explaining about the advanced training centre of the company
transported to the villages ( where satellite factories are located ) in a small truck which comes back next day with stitched pieces . All postprocesses like finishing , inspection , and packaging take place in the central / big unit . “ We identified nearby villages and initiated factories in areas of around 5,000 sq . ft . With 100 stitching machines , the maximum number of people working there are 200 . As of now , five such factories are producing nearly 2 lakh pieces per month . It is a win-win situation for all as we get the production and people get employment as well and also save their time ,” informed Devadas P M , Assistant VP , Business Excellence , Industrial Engineering , Sustainability & Safety to Apparel Online .
To hold onto their workforce , the company is also using nearly 60 buses to provide pick-anddrop facility to its workers in all its Bangalore units . As cost of living is increasing in the city , migratory workers are facing difficulties to survive as most of the factories are normally paying them a minimum wage of about Rs . 8,500 per month but after some years of experience and skills , these workers can earn about Rs . 15,000 a month .

Are small buyers ’ visiting India declining ?

Most of the medium- and smalllevel apparel exporters of India have their businesses with smalland medium-level buyers who are across the globe . And these kinds of buyers don ’ t have their offices or even staffs / agents in India . Their order confirmation is mainly dependant on their visit and one-o-one meetings . For the last few months , the increasing security issues are further limiting their travel to India , as some of the exporters feel so . Even those who are not limiting their travel are scared because of such security alerts . Apart from this , increasing number of sourcing events around the world is also something that is forcing them to travel less .
“ There is still some fear as one of my UK-based buyers asked me about the recent high alert at
the Delhi airport . I assured him that conditions are safe here . I hope , he will visit this time ,” told Uday Sehgal , Director , Marico , Noida , optimistically . The thing which assures the overseas buyers is that India is much safer as compared to many European
countries . For example , London had a recent terrorist attack ( in the first week of June 2017 ).
“ Few years ago , women buyers were concerned , especially about issues like molestation , but now overall things seem to have improved . Buyers normally
According to market estimates wholesalers / importers who are private label owners , account for around 60 per cent of buying from India .
come during fairs so that they can attend the fairs and also complete their due meetings and factory visits at the same time rather than conducting separate trips for these purposes ,” said Shibu Mathew , Partner , Karur Export Company , Karur .
48 Apparel Online India | JULY 1-15 , 2017 | www . apparelresources . com