The Hindu Business Line : `Garment manufacturers need high value raw materials'

"The Ministry of Textiles has set a target of $50 billion for textile and garment exports by 2010. But to get there, the access to raw material has to improve."

A VIEW of a garment unit

Bangalore , July 26

Garments and textiles exports in the country are pegged at about $16 billion. But when compared with the domestic market (about $40 billion) and China's textile exports of $60 billion, this figure is rather low, says Mr Brian Parker, a Mumbai-based freelance consultant for the textile industry.

So, where does the lacunae lie? In access to raw materials, explains Mr Parker, who is here in connection with a textile trade fair.

"India as a manufacturer of fabrics and accessories is building capabilities. Name any international brand - JC Penny, Macy's or Giordano - they have their sourcing base in India and China. But we are still not quite there. Garment exports have been growing at 4-5 per cent for the last four years. But that's negligible. For Indian garment manufacturers to get higher dollar value realisation in the international market, they need to make high value garments and scale up capacity for which they obviously need high value raw materials."

"The Ministry of Textiles has set a target of $50 billion for textile and garment exports by 2010. But to get there, the access to raw material has to improve."

Trade show

The Fabrics and Accessories Trade Show to be held in Bangalore from August 4 to 6 hopes to address this issue. Into its third edition, the trade show provides sourcing information for garment manufacturers, exporters, fashion designers, buying houses and the merchandising companies on raw materials that go into the making of a garment - fabrics, accessories, trimmings and embellishments. "It will be positioned as a sourcing platform for identifying suppliers," says Mr P.N. Krishna Murthy, CEO, SS Media and Marketing, organisers of the show.

There will be 84 participants, including 12 international players, across 180 stalls. The exhibitors include Hyderabad-based GTN Industries, KG Fabrics (Coimbatore), Jindal Poly Buttons, and international manufacturers such as TNS Buttons (Sri Lanka), Union International (Hong Kong), QST Industries (US), Asia Global Shanghai and Fashion Tex International (Sri Lanka). Exhibitors include manufacturers of shirting material, suiting material, knitted fabric, denim, corduroy, buttons, dress materials, sippers, hangers, sewing thread, embroidery products and interlinings.

Last year, the show saw around 2,600 visitors from 67 buying houses. "This year too we expect 3,000-4,000 visitors," says Mr Murthy. Some of the major garment makers that visited the show in the last two years include domestic firms such as Madura Garments, Arvind Brands and Gokaldas Exports and international companies such as JC Penney, Nike, Wal-Mart and Gap.

Capacity expansion

Mr Parker says there has been a lot of capacity expansion in India, especially after the abolition of quotas (restrictions on imports in the WTO multi-fibre agreement) last year. Garment manufacturers and exporters have a lot to cheer with the lowering of import duties, which will, he says, eventually be scrapped.

"India has been traditionally strong and proactive in colours and designs. Indian companies are working very closely with international designers, perhaps not the case with China. We are also very strong in summer wear. It fetches very steady dollar realisation," he says.

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