Q-and-A

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Fab­ric sourc­ing is one of the most chal­leng­ing tasks, no mat­ter whether you di­rectly work with mills, C&F agents or source yarn and get it weaved and pro­cessed… What is your strat­egy to en­sure smooth fab­ric sourc­ing from se­lec­tion to qual­ity as­sur­ance to timely de­liv­ery? Have con­di­tions im­proved over the years on this front?

Sud­hir Dhin­gra, CMD, Ori­ent Craft, Gur­gaon

Our com­pany faces sim­i­lar kinds of chal­lenges in fab­ric sourc­ing like oth­ers of the ap­parel man­u­fac­tur­ing in­dus­try. We are not be­yond the in­dus­try. What you can't help, you must ac­cept. The sit­u­a­tion is still the same when we see that the ma­jor sec­tor is man­made fi­bre and there are a lot of du­ties im­posed by the Gov­ern­ment which in­creases our cost. Lo­cal

In­dian pro­duc­ers of the same quote price as they wish which is of­ten very high. No­body wants to break or can break their mo­nop­oly, so busi­ness is suf­fer­ing.

Narinder Pal Singh, MD, Nancy Krafts, Delhi

We mainly work on wo­ven fab­rics. No doubt, there is an improve­ment in fab­ric sourc­ing process es­pe­cially in past few years. And one of the main rea­sons for this has been in­creas­ing com­pe­ti­tion across In­dia. Es­pe­cially, qual­ity has im­proved which is a good thing. For qual­ity is­sues, your se­lec­tion of ven­dors does mat­ter but at the same time you can’t ig­nore the price fac­tor also. Still, we suf­fer due to price fluc­tu­a­tion. Price in­creases any­time with­out any strong and valid rea­son. We pay that from our pock­ets. When we talk to our sup­pli­ers, they also show help­less­ness. Buy­ers do need to think in this re­gard as they don’t want to pass any ben­e­fit to the ex­porters like in the case of weak­en­ing ru­pee, they hardly con­sider the is­sue of im­ported fab­ric. While the cost of im­ported fab­ric has in­creased. Over­all there is still enough scope for improve­ment in fab­ric sourc­ing, es­pe­cially on the price front.

P. Bala­mu­ru­gan, Manag­ing Part­ner, Tex Orchid, Tirupur

Over­all there is no ma­jor is­sue. What­ever small things or chal­lenges are there, they are part and par­cel of the busi­ness. To make sure of the smooth process, we en­sure ef­fec­tive trial run. Once the trial run is com­pletely okay, then only we move for­ward. If there is an is­sue, we sort out that is­sue com­pletely at that stage. My only con­cern is the price which is with­out any logic or sys­tem. When­ever there is a tilt to­wards cot­ton ex­port, yarn man­u­fac­tur­ers or sup­plier in­crease the price with­out any rea­son. This is not fair. There is no way to con­trol this il­log­i­cal price hik­ing. We al­ways bear this hike and can’t ask buy­ers to pay for this ad­di­tional cost.

Su­nil Ku­mar Goel, Pro­pri­etor, Su­nil En­ter­prises, Kolkata

We work mainly in 100 per cent cot­ton, silk and li­nen and mostly source yarns from whole­salers or traders of Kolkata. Qual­ity is all about the value for money. What you pay, you get ac­cord­ingly. So far, we have not seen any ma­jor is­sue re­gard­ing qual­ity, de­liv­ery or any such com­mit­ment. Un­pre­dictable is­sues like tech­ni­cal fault or sud­den gen­uine rise in de­mand af­fect some­times but no one can do any­thing in such a case. Mar­ket forces al­ways have neg­a­tive or pos­i­tive im­pact, like if there is less de­mand, we eas­ily get what­ever is re­quired. On the other hand, if de­mand is more, sup­ply has to be af­fected nat­u­rally.

Su­nil Garg, GM – Mer­chan­dis­ing,

CTA Ap­par­els, Noida

As far as our or­gan­i­sa­tion is con­cerned, we deal pri­mar­ily in wo­ven fab­ricbased gar­ments and buy yarns. Though our weav­ing is out­sourced, we have an edge of hav­ing our own ad­vanced process house which is a big ben­e­fit, be it the is­sue of qual­ity or timely pro­duc­tion. Re­gard­ing cot­ton and vis­cose, I don’t see any ma­jor chal­lenge as over­all pro­cure­ment of this seg­ment is okay.

There are is­sues in the syn­thetic seg­ment as our In­dian pro­duc­ers are still not able to match the Chi­nese syn­thetic. Though qual­ity of In­dian syn­thetic may be good, but over­all it does not match up with the Chi­nese or im­ported fab­ric. Most of the buy­ers ap­prove such fab­ric as there is no other vi­able op­tion in this sit­u­a­tion and com­par­a­tively price of In­dian fab­ric is also a lit­tle less. I have ob­served that when it comes to im­port­ing fab­ric from China, there is a lot of un­cer­tainty in terms of price as well as de­liv­ery. There­fore, In­dian com­pa­nies should adopt sim­i­lar ad­vanced in­fra­struc­ture like China. We do keep enough stock (50,000 to 1,00,000 me­tres) of such fab­ric which is max­i­mum in use. It en­sures smooth pro­duc­tion.

Manoj Goyal, CEO, Goyal Tex, Jaipur

Yes, still there are chal­lenges es­pe­cially with re­gard to li­nen and im­ported silk. I would high­light the an­tidump­ing duty on li­nen. When In­dia is not pro­duc­ing li­nen, what is the point of hav­ing anti-dump­ing duty? As far as cot­ton fab­ric is con­cerned,

there is not much prob­lem as we try to plan well in ad­vance. Though at times, there are qual­ity is­sues in cot­ton and rayon fab­rics also and for that, we have strong ar­range­ments for grey check­ing. Weavers are still not up to the ex­pected level and we have to main­tain proper com­mu­ni­ca­tion with them to en­sure qual­ity. Even af­ter that, we still find qual­ity is­sues. In this case, the fab­ric goes back to them for ex­change and we black­list such ven­dors so that such is­sues do not come up again. I feel debit note is just a one time so­lu­tion. It is not even a so­lu­tion but rather a kind of dam­age con­trol and so we don’t is­sue debit note.

Jai Singh, Man­ager – Fab­ric Sourc­ing, Bou­tique In­ter­na­tional, Noida

As we have good in-house in­fra­struc­ture for knit­ting, we pro­cure yarns and that too from pres­ti­gious com­pa­nies like Vardhman and Na­har etc. So, we don’t have any is­sues, be it of qual­ity or lead time. We keep a rea­son­able stock of yarn. There are more op­tions in yarn sourc­ing com­pared to fab­ric though it in­volves fur­ther fol­low-ups like knit­ting, dye­ing etc. But we can al­ways co­or­di­nate with max­i­mum mills. Proper plan­ning and co­or­di­na­tion re­ally works and things come out on time and as per the re­quire­ments.

I must say that still, there are many yarns or blends which are not eas­ily avail­able in In­dia like cash­mere. My sug­ges­tion to fel­low in­dus­try pro­fes­sion­als is only to work with such com­pa­nies which have max­i­mum in-house sys­tems and to try to de­velop strong and long-term re­la­tions with them. Debit note is not an op­tion and leads to use­less quar­rel.

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