Q-and-A

Apparel Online - - Mind Tree -

Since prices in China are in­creas­ing and rea­son­able number of ap­parel and tex­tile or­ders are be­ing shifted from there, these con­di­tions must be hav­ing some re­cip­ro­cal ef­fect on al­lied in­dus­tries also. As In­dia is im­port­ing big chunk of trims/ac­ces­sories from China, have you no­ticed any kind of im­pact on trims, com­ing from China...; Are the prices still the same or have in­creased...; Is there any pres­sure to in­crease or­der size… Which is the most af­fected prod­uct cat­e­gory in trims and how are you cop­ing with this sit­u­a­tion?

HKL Magu, Chair­man, AEPC, Gurgaon

Yes, over­all cost­ing in China is in­creas­ing due to in­crease in wages; but as far as your ques­tion of in­crease in the price of trims is con­cerned, there is no im­pact. Even if it is there, it is a mar­ginal in­crease and we can’t do any­thing as it is all about nom­i­na­tion by over­seas buy­ers. We can’t ne­go­ti­ate with nom­i­nated sup­pli­ers and ev­ery­one knows how they are. As our com­pany works with stores and mail or­der com­pa­nies, they al­ways work with nom­i­nated peo­ple be­cause they don’t buy only from In­dia but also buy from Bangladesh, Cam­bo­dia, Viet­nam, etc. So, they have nom­i­nated peo­ple in China or Hong Kong, from where they source the re­quired trims and sup­ply to dif­fer­ent sup­pli­ers. Over­all my or­ga­ni­za­tion, Jy­oti Ap­par­els, uses 70 per cent of im­ported trims.

Vinod Kapur, MD, Rad­nik Ex­ports, Delhi

We don’t im­port much from China but what­ever we im­port, we do it through our own rep­re­sen­ta­tives in China who han­dle all things, be it price or qual­ity. Prices may have in­creased 5 per cent which is nom­i­nal look­ing at over­all cost­ing. What­ever to­tal trims we use, out of that just 2 to 5 per cent is be­ing im­ported from China. So, this is not much an is­sue.

JD GIRI, Direc­tor, Shahi Ex­ports, Faridabad

I don’t see any in­crease as such. Ex­porters are now buy­ing a lot of trims from In­dia as there are many good com­pa­nies like Tex Zip­pers, YKK and many more; we too are sourc­ing ma­jorly from In­dia. In case it is nom­i­nated by the buyer, then we have to take it from the des­ig­nated sup­plier. Oth­er­wise if a choice is be­ing given, we pre­fer to pro­cure it from lo­cal com­pa­nies or lo­cal manufacturers. Sec­ondly, who­ever the trims sup­pli­ers are, they are also quite com­pet­i­tive look­ing at the mar­ket sce­nario. Even in the case of fabric, there is heavy in­tense com­pe­ti­tion. So, there is no ma­jor im­pact on prices of im­ported trims.

Sarthi Sawh­ney, Direc­tor, Bright Star, Delhi

Many cus­tomers give a nom­i­nated sup­plier and pre-fix pre-ne­go­ti­ated prices of the trims which we can ex­actly add in the cost­ings. More than the price of the ac­tual trim, fac­tors which re­ally af­fect our costs is the ‘red tape’ cul­ture sur­round­ing In­dia’s im­port­ing sys­tem – from high bank charges to T/T pay­ment – to a day’s time taken in pa­per­work to be sub­mit­ted to the bank. There is high sur­charge on freight to In­dia, and there­after Cus­toms duty be­ing levied on these trims which will es­sen­tially be 100 per cent re-ex­ported. Even af­ter hav­ing pro­vi­sions like IC and RCMC, it is a has­sle to deal with Cus­toms of­fi­cers to make them un­der­stand why duty should not be levied. And if we pur­sue to work with Cus­toms of­fi­cers, we are at their will and mercy of com­ing to the ter­mi­nal oth­er­wise de­mur­rage charge can tick off. Sim­ple, clear and in­struc­tive poli­cies should be framed by the Min­istry of Tex­tiles in con­sul­ta­tion with the dif­fer­ent tex­tile coun­cils as well as in uni­son with the CBEC to make this a smooth process. Im­port sys­tems and bank pay­ment sys­tems in all other coun­tries (in­clud­ing China) on the other hand are ex­tremely for­ward think­ing and con­ducive for smooth business.

Sushil Ag­gar­wal, MD, Eves Fash­ion, Delhi

Nor­mally, trims con­trib­ute only 10 per cent of the cost of a gar­ment, and the ques­tion is not about that 10 per cent as one can use In­dian-made trims or im­ported ones which are cost-ef­fec­tive than In­dia­made. As per my point of view, the ques­tion is that we need more ex­po­sure in value-added items and it should not de­pend only on trims, be it im­ported or In­dian-made. For ex­am­ple, In­dia still has not ex­plored the core strength of Luc­know’s chikan em­broi­dery, be­sides the var­i­ous tra­di­tional types of dye­ing from Ra­jasthan, etc.

Yusuf Do­had­wala, CEO, In­ti­mate Ap­parel As­so­ci­a­tion of In­dia, Mumbai

There is no im­pact, as trim man­u­fac­tur­ing is cap­i­tal-in­ten­sive rather than be­ing a labour­in­ten­sive in­dus­try and cost­ing in China is in­creas­ing due to high wages. Here I must say that still In­dia is very much de­pen­dent on China re­gard­ing trims, spe­cially in lin­gerie seg­ment. All this is de­spite the high lo­gis­tic cost and cur­rency fluc­tu­a­tion.

In mid-price lin­gerie seg­ment, at least 50 per cent trims are be­ing im­ported from China while in premium seg­ment, the same will be nearly 70 per cent out of to­tal con­sump­tion. In few cases, Chinese ac­ces­sories may be lit­tle costly too but de­spite that In­di­ans are forced to im­port due to qual­ity and bulk pro­duc­tion. So, there is no com­par­i­son in price of In­dian and Chinese trims, same is ex­pected to con­tinue for at least the next few years.

Shakti Jain, Direc­tor, Great Eastern Im­pex, Gurgaon

To the best of my knowl­edge, there is no such im­pact of any Chinese de­vel­op­ment on our bar­code la­bels in­dus­try. Though I am not very much sure about its rea­son, but easy avail­abil­ity of raw ma­te­rial in In­dia and com­par­a­tively smaller or­der quan­tity from In­dian gar­ment manufacturers, seem to be the big rea­son for the same. Hardly, 10 to 20 per cent of al­lied trims to our seg­ment like fabric tape, ny­lon taffeta, etc. is be­ing im­ported from China.

Manoj Tul­sani, Direc­tor, Red Square En­ter­prises (BTW), Ul­has­na­gar

As far as our prod­uct cat­e­gory of em­broi­dery thread is con­cerned, there is no im­pact from Chinese prod­ucts. In­dia’s fo­cus on large va­ri­ety in term of colours, and es­pe­cially in­creas­ing man­u­fac­tur­ing in Su­rat and other hubs, are en­hanc­ing In­dia’s strength in this seg­ment. Anti-dump­ing duty by In­dia is also in our sup­port. On the base of in­dus­try es­ti­mates, I can say that only 20 per cent of In­dia’s con­sump­tion in this prod­uct cat­e­gory is com­ing from China, which is into ba­sic colours and vis­cose-based prod­ucts but with time this will also re­duce. I must say that in our seg­ment, if one can of­fer proper colour and qual­ity, price is not a very big is­sue.

Dev Ku­mar Bansal, Pearls of In­dia Con­sul­tancy & Sourc­ing, Ghaziabad

There is no big im­pact on In­dian ap­parel ex­port in­dus­try from out­side and es­pe­cially in trims’ im­port; the main im­pact is from inside. Wide­spread cor­rup­tion, dis­hon­esty and tax eva­sion are the root causes. All this is hap­pen­ing un­der the nose of fac­tory own­ers. Why are these is­sues be­ing over­looked?

Newspapers in English

Newspapers from India

© PressReader. All rights reserved.