Fall in temperature propels demand for winter wear

Vijay C Roy

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Tribune News Service

Chandigarh, December 18

A sharp decline in temperature in the northern and other parts of the country has propelled the demand for winter wears. Manufacturers in Ludhiana have received repeat orders to the extent of 15% from their clients. They are also hopeful of clearing the old inventory.

Currently, a majority of the units in Ludhiana work as vendors for other manufacturers. With repeat orders in hand, many manufacturers have delayed production for summers, which normally starts in the first week of December.

“Having received good response from customers in October and November, the big brands, which outsource finished products from Ludhiana-based industry, have already placed repeat orders in November itself. After fulfilling the domestic demand obligation for winter wears, some of the units have commenced production for the summer season in the current week while others will start in a day or two,” said Ajit Lakra, MD, Superfine Knitters Ltd. According to estimates, many of the units in Ludhiana have received repeat orders to the extent of 10-15%.

Many of the Ludhiana-based manufacturers cater to domestic and international brands. Some of them even sell their winter wear under their own brand. “The increase in demand from the domestic market, especially for winter wears, has provided a cushion to the slowdown in exports market,” said KG Exports’ managing director Harish Dua.

Ludhiana accounts for over 90% of the total winter wear production in the country, which is pegged at around Rs 15,000 crore. Of the winter garments, knitwear constitutes around 50% of the domestic apparel market in India. There are around 12,000 units in Ludhiana, a majority of them in the MSME category who are engaged in the production of winter wear. Winter wear category comprises sweaters, hoodies, sweat shirts, jackets, shawls, cardigans and trousers.

Manufacturers also hope that the fresh demand will clear last year’s inventory lying up with some manufacturers. “There is a demand in the domestic market. We are hopeful that the manufacturers will be able to clear last year’s inventory, which is normally around 15-20% of the total production,” said Vinod Thapar, chairman, Knitwear and Textile Club, Ludhiana.

According to the manufacturers, there is an apprehension that winters may extend till March this year. So anticipating good demand and taking a cue from the early response, the industry has taken a little risk by producing more as compared to last year.

The manufacturers stressed on early setting of yarn bank which was announced by the Textile Ministry earlier this year. Entrepreneurs are also of the view that once the centre is operational, they would be able to utilise their operational cost in a much effective manner as their capital will not be blocked. The yarn bank is expected to ensure timely availability of yarns to the entrepreneurs.