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authorities on the rampant corruption and law and order situation in Noida and are still to get relief that can be termed as worthwhile ,” says Shiv Bhargava , President , Exporters Grievances Association , Noida . Bhargava is among the pioneers of the Indian garment industry and was also one of the first companies to set-up a unit in Noida . In fact , the law and order situation has in the past caused many factories to spend good amounts on security agencies and many even claim that the police department is not very supportive in case a theft or any other incident is reported .
Some companies have also pulled out of Noida due to these issues , but the city is still an attraction . “ Earlier the factories moved from Okhla to Gurgaon , but now most of the new factories are coming up in Noida as the Government in UP is very proactive in supporting the garment industry ,” says Lalit Thukral , MD , Maharana of India . As also the President of Noida Apparel Export Cluster , Thukral is working to make Noida the future garment manufacturing destination , and earlier this year , the Yamuna Expressway Industrial Development Authority approved a 200-acre Textile Park , wherein 100 textile businessmen will be allotted space . The park is expected to boost industry growth by creating nearly half a million employment , 90 % of whom will be women . It will be ready in a span of three years .
For exporters in the region , the choice of where to set up a factory is not an easy one and sometimes the nature of NCR itself can be a hindrance . “ For companies that have factories in Noida , Delhi and Gurgaon , it can be very difficult because the states are different and many rules and regulations , besides the minimum wages differ , so balancing the management can be very tough ,” says Anil . In this context , Magu shares that Jyoti Apparels too found it difficult to run factories in both Gurgaon and Noida and has since relocated fully to Gurgaon for management convenience .
Wages : Increased in Noida ; Delhi ’ s issue still pending
Continuously increasing minimum wages in Delhi and subsequently Gurgaon was one of the major reasons
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ESSENTIALS
The business in the Delhi-NCR region is very interestingly poised and without expecting any major shake-up , the industry is hoping that the next few months will see better orders and more tangible results from the hard work done , in the last two years to remain preferred suppliers !
“ The NCR is very important to garment trade and even today , when other centres are coming up strongly , the region accounts for nearly 40 % of total garment exports from this country ,” shares HKL Magu , Chairman , AEPC and MD of Jyoti Apparels , one of the stalwarts of the industry and the Delhi-NCR region .
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for shifting to Noida , but that also is now going to see change . Though the proposed wage hike in Delhi is still in court and various stakeholders have different opinion and reactions , the minimum wage is now going to increase in Noida . According to a new notification of Uttar Pradesh State Government , the increase in wages will be applicable from 1st October 2018 . Currently the minimum wage for unskilled , semi-skilled and skilled is Rs . 7,674.45 , Rs . 8,443 and Rs . 9,457.49 , respectively . The wage is to be increased by Rs . 61 , Rs . 69 and Rs . 76 , respectively . These rates will be valid up to 31st March 2019 .
Now with this increased wage rates in Uttar Pradesh , the difference between the two main hubs of NCR – Noida and Gurgaon – has narrowed down and is just Rs . 871 , as the minimum wage for a skilled worker is Rs . 10,328.83 in Gurgaon . In Delhi , the minimum wages of unskilled workers were revised in March 2017 from Rs . 9,724 to Rs . 13,350 per month , for semiskilled workers from Rs . 10,764 to Rs . 14,698 and for skilled labourers from Rs . 11,830 to Rs . 16,182 . In April 2018 , there was again a little hike in these rates . As the Delhi High Court put a stay on the State Government ’ s notification , the issue is now in Supreme Court .
Encouragingly , the companies in Noida seem to be prepared for the rise . “ Definitely increased wage is always a burden but there is no option . As we knew well in advance that minimum wage has to grow from this month , tentatively , one could plan in advance accordingly ,” says Rajeev Bansal , MD , Celestial Knits & Fabs , Noida and Divisional Chairman , Indian Industries Association , Meerut . The full impact of the wage raise will be known in a few months , but as of now , the industry does not seem to be too worried , which is a positive sign .
Expansions now in other states …
While exporters in other hubs have readily relocated to more lucrative areas when cost of production increases , like Mumbai factories moving to Bangalore and Chennai factories going to Tirupur , Delhi factories have mostly shifted to the NCR hubs . Only Shahi from Faridabad has really shown courage to take factories to the south in a big way . There are some other examples
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though , but even Shahi being India ’ s leading exporter and having set a successful example , has not motivated the industry at large to move out of the comfort zone … But things could change now ! With cost of production in the Delhi-NCR becoming uncompetitive , especially if a company wants to expand , the new emerging states of Odisha , Jharkhand and even Telangana are the preferred locations . Companies like Orient Craft , Matrix , Pearl Global , Modelama , Richa Global , Meenu Creation , Akriti Apparels have started exploring the opportunities in these emerging manufacturing bases . But then there are others who feel that too much time is spent in creating the right ecosphere . “ We are planning to set up a training centre in Ranchi . We did an internal survey that 50 % people in our factory belong to Bihar and Jharkhand . Because if you keep running to low-cost area , where will they go after 5 years ? Also , setting up a factory in a new area is time-consuming . By the time it gets approved and the plant starts functioning , we might come to know that technology has already upgraded . So , these collective issues are stopping us from moving out of Delhi-NCR ,” says Karan Jain .
Enthusiasm at buying houses / liaison offices in Delhi for increased business …
Some of the buying houses across Delhi- NCR are doing well ; few are becoming more organised and continuously adding newness into their products and services . To mention few : New Times Group , Gurgaon office recently was in process to hire new staff as it is growing well . Gloria Jeans ’ India office also confirmed an increase in its sourcing . Patanjali recently opened its sourcing office in Noida . Apart from these well-known and established buying offices , few new buying houses are also emerging in the region , like Avanni Apparel Sourcing of Delhi , which is a new name that ’ s having a major focus on domestic and also having clients in overseas markets .
Creatnet Services , another Noidabased buying house , installed ERP and is geared up for consistent growth of 25 %. The buying house recently also associated with young women clusters of Uttarakhand to reimagine and contemporise their techniques into beautiful and modern boho-luxe silhouettes .
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