Apparel Online India Magazine September 1st Issue 2018 | Page 18

LEAD STORY
‘DO OR DIE’…
THE NEW MANTRA FOR GROWTH IN GARMENT INDUSTRY
The dichotomy of views on garment exports is a study on how different companies working in the
same industry can perceive the same situation as positive and negative! While some companies are
talking of all the reasons that will spell doom for the industry, there are others who have not only
come to terms with the situation, but are actually moving ahead with investments and expansion
plans. It is obvious that the industry has evened out, and only those who are ready to change will
remain and prosper. Opportunities are floating, but grabbing them requires a strong mindset and
a competitive manufacturing set-up.
E
nough has been said on the role,
or rather on the absence of a role,
by the Government, particularly the
Textile Ministry, about supporting
the industry in its time of need. The
good thing that has come out of all
this is that the industry has finally
come to terms with the fact that they
have to pave their own road and just
waiting for things to happen is not
a solution. Also, the fact that both
the Minister and the senior officials
who are responsible to interact with
the industry and provide necessary
support, do not understand the nature
of the industry, is obvious. How can
the Government support an industry
that is neither a priority industry nor
manned by people who understand
and appreciate the importance of
the industry, as a major employment
generator?
One exporter, who did not wish to be
named, informed Apparel Online
that when drawbacks were being
withdrawn, many exporters had
requested that the move should be
postponed for the next buying season
as orders had already been placed
based on calculation of the expected
drawbacks, and pulling the plug at
this time could be ‘suicidal’. But the
Ministry could not apprehend why it
should make a difference… In fact, if
sources are to be believed, the Minister
suggested that they should discuss
with their buyers and renegotiate!
This only goes to show that the
Ministry does not even understand
how the industry works… Will a buyer
ever renegotiate because our duty
drawbacks have been withdrawn; even
this very thought is perplexing! When
“The worst is over
for the Textile &
Clothing Industry
and it is finally
on the verge of a
turnaround.”
– Sanjay Jain, Chairman,
Confederation of Indian Textile
Industries (CITI)
“There is no point
of talking about
change unless we
set it rolling, just
waiting for change
to happen, is a
strategy that losers
use.”
– Pranab Mahajan, Director,
Mahajan Overseas, Panipat
the Tirupur Exporters Association
suggested asking for a 10% price
hike from its buyers to beat the
price pressures, the industry was
taken aback. Most exporters felt that
any such move would actually be
counterproductive and buyers would
naturally move to more competitive
manufacturing destinations. “The
suggestion is very far-fetched and
unfair… How can we ask buyers
to pay for our inefficiencies?”
reasoned Vinit Sethi, Director,
Orient Fashions, Gurgaon adding
that companies now have to make
investments at the right place if they
want to stay in business.
While the exporters found the
suggestion completely bizarre,
even buyers were surprised.
In a note to Apparel Online
Animesh Chakraborty,
Senior Executive Sourcing &
Merch