Apparel Online India Magazine December 1st Issue 2018 | Page 41

INDUSTRY LIVE
Small- and
medium-level
factories in
congested areas
have many
other problems
too. A case in
point is Gandhi
Nagar and Tank
Road markets
where there
is no proper
and enough
arrangement for
parking, resulting
in regular traffic
jams; even
conditions
here are very
unhygienic.
This image was taken a few years back in one of the factories in Delhi. Even today,
some factories have the same situation where operators still use LPG cylinders to
prepare their food on the shopfloor and even sleep there as factory has become their
home also
It is worth mentioning that unlike the
export factories which are worried
about compliance, none of the NGOs or
buyers are concerned about compliance
or even the proper execution of law
of the land, which is adding to the
negligence in the case of domestic
Kanwal Kumar Bali, the veteran of Gandhi Nagar textile
industry and President of Delhi Hosiery and Readymade
Garments Manufacturers Association
production. “In apparel export, there
is a lot of pressure and safety check
from the buyer side. If some similar
initiatives can take place in these
manufacturing areas, the condition can
improve,” concludes a manufacturer on
the promise of anonymity.
Though some of the factories in these areas are using
branded sewing machines, they are lacking on safety
issues. Unsafe practice of using wire without proper
plugging into the socket as seen in this image
Innerwear companies
posted growth in Q2
Three well-known Indian innerwear companies performed
well during Q2 and posted good growth. Dollar Industries Ltd.,
Kolkata, a big player of organised domestic retail and intimate
wear noticed good growth during Q2 of 2018-19 as its revenue
was up by 24.12 per cent and net profit increased by 31.27
per cent. In H1 of FY 2018-19, the company noticed 7
per cent increase in sales and 21.68 per cent surge in net
profit, while in last fiscal (2017-18), the company had seen
exports of Rs. 67.19 crore. Dollar Bigboss, Force, Dollar Ultra
are some of the main brands of the company.
Five decades old, Rupa & Company, Kolkata, is another major
player of this segment which witnessed 0.6 per cent decrease
in its sales as the company’ total income from operation for
Q2, FY 2018-19 was Rs. 249.30 crore compared to Rs. 249.46
crore, but still its profit increased by 30 per cent. Its profit in
this Q2 has been Rs. 28.08 crore compared to Rs. 21.60 crore
in the same period last year. It includes brands like Frontline,
Euro, Macroman, etc.
“Growth in Indian intimatewear, especially in mens’
undergarment, has started recently and at least till the next
decade it will grow at a very good rate. These companies are
marketing aggressively, adding a new product category in
the same segment which is creating good value for them. In
last few years, these companies have also started targeting
mid-segment while earlier they focused majorly on the masses.
This has helped them to enhance their market reach as well
as profitability. The new generation of these companies is also
involved completely and are carrying forward the legacy,” said
Yusuf Dohadwala, CEO, Intimate Apparel Association of
India (IAAI), Mumbai. He further added that Indian youth
is quite aspirational and are open to experimentation while
proving fruitful for these companies.
Apart from these companies, Page Industries, Bangalore
which is the exclusive licensee of US-based Jockey brand
for manufacturing, distribution and marketing in India,
Sri Lanka, Bangladesh, Nepal and the UAE, also noted
growth. The company has registered 10 per cent growth in
its year-on-year net profit at Rs. 92.6 crore in the Q2 of FY
2018-19 as compared to Rs 84.05 crore in the same quarter
last year. Page Industries’ revenue too rose by 10 per cent to
Rs. 690.7 crore against Rs 625.7 crore last year. But it is worth
mentioning here that it is the weakest growth of the company
in over a decade. Its EBITDA (earnings before interest, tax,
depreciation and amortisation) & profit grew by 10 per cent
year-on-year which are significantly below estimates. It is to be
noted here that the company reported a lower-than-expected
net profit and revenue as analysts on an average had expected
a profit of Rs. 1.14 crore and revenue of Rs. 7.45 crore.
In India, Jockey recently started focusing on mid-segment also
while earlier it was known as a premium brand.
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