The prices of yarns have doubled this year as compared to previous year. The garment manufacturers are having a tough time to strike a balance between the increasing production cost and customer satisfaction, since they risk losing their buyers due to elevated prices of the finished products.
The business owners of Noida garment industry import yarns majorly from the spinning mills, located in Ludhiana, Punjab. Over the past few years, the demand for yarns has increased manifolds, which is responsible for increased prices and irregular supply of raw materials, resulting in slowed growth of the industry.
Noida garment industry, having an annual turnover of Rs 3500 crores, consists of over 5000 firms which employ over 40000 workers. Its product portfolio includes both apparels and home furnishing materials, which are exported all over India, especially in UP, Haryana, Delhi, Himachal Pradesh, Punjab and Rajasthan. However, the players here are yet to enter the international market.
While talking to Supportbiz, Rajan Kumar, owner of KL Garments said that the hike in the prices of yarn by over 50 per cent has not only affected the production process, but also has led to irregular supply. The growing number of garment manufacturers in Ludhiana is also resulting in the shortage of raw materials in Noida.
“It leads to delay in the production process; it hampers the smooth flow of work. Immediate steps should be taken to maintain the prices and regular supply of the raw materials. It would definitely increase our efficiency and would help the industry to fulfill the orders on time,” he said.
Manish Sharma, owner of Priya Clothing said, “Another major reason for the slowdown of the industry is, the traders make more profit than the manufacturers. The industrialists do not have much exposure to the market and the traders make money by selling the product at higher rates to the clients.”
“There is a need to arrange seminars on latest technology and infrastructure to educate the small industrialists. These should also guide on better marketing techniques so that the industrialists can sell their own products and earn profit,” he added.