Apparel Online India Magazine May 1-15, 2019 | Page 18

LEAD STORY
IS ODISHA LOSING ITS EDGE
FOR APPAREL MANUFACTURING?
Odisha, one of the Indian
states with the most stable
State Government wherein
the current Chief Minister has
been in power for the last 19
years, was once among the
top emerging destinations for
apparel manufacturers; but is it
now losing its charm…? At least
recent developments give such
indications about this ‘most low-
cost apparel manufacturing hub’.
The State Government of Odisha
hiked the minimum wage after
a period of three years and that
too by massive 40 per cent to 65
per cent. This is amidst ongoing
issues like local labour who are
exceedingly working hard in
Tirupur or Bangalore, but do not
work with the same spirit in their
hometown (high absenteeism is
another added worry). So far, the
state has even failed to develop
an ancillary support structure,
which is the backbone of any
successful manufacturing hub.
Apparel Online talked to some of
the industry stakeholders having
units in Odisha, and involved
in some projects, and tried
to figure out Odisha’s current
movement towards apparel
manufacturing. More or less,
as of now, it seems difficult for
Odisha to be a successful apparel
manufacturing hub.
2015: Full of activities and
promises
In 2011, StitchWorld (Stitching and
technology-based magazine of Apparel
Resources) published an article ‘Orissa: The
New Apparel Manufacturing Destination’,
based on a study by Priyanka Sinha of
NIFT, comparing 113 locations in India on
50 different key performance indicators to
settle on the best and most low-cost apparel
manufacturing hubs.
The actual stir of activity started more
than four years later. At the beginning of
2015, Madura Fashion & Lifestyle (MFL)
announced that it will be setting up a
garment manufacturing unit in Odisha
and has sought 8 acres of land. The total
investment across three phases was
estimated to be US $ 11.7 million, with a total
production capacity of 4.2 million pieces
per annum. It was announced to generate
a total employment for around 4,600 people
across all three phases. The company
also had a plan to create three washing
units, three goods packaging units and five
embroidery units.
In September the same year, Naveen Patnaik,
Chief Minister, Odisha laid the foundation
stone of the new unit of Shahi Exports. The
company announced to invest Rs. 36 crore.
Naveen Patnaik at that time expressed
hope that this step of Shahi Exports will
encourage others to invest in the state, but
that actually did not happen. According to
official information, currently the company
18 Apparel Online India | MAY 1-15, 2019 | www.apparelresources.com
“It is not only about
Odisha or Ranchi,
we have to see this
issue with a holistic
approach. Delhi is
already saturated, and
similarly Bangalore too
is on the way as issues
are not only limited
to real estate, or
increased wages, but
even to heavy traffic
being an impediment
for workers. Overall
industry’s efficiency
level is still down
while wages will
grow continuously…
Professionals
exploring or leading
the initiatives in the
emerging hubs are
not trained to start
and execute properly
these kinds of projects.
Irrespective of the
state or emerging
hubs across India,
the administrative
bodies have to be
more aggressive and
have to deliver as
per Government’s
promise. All of us have
to change our mindset
accordingly.”
Nimish Dave, Founder
and CEO, The Idea
Smith, Gurgaon