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G. Srinivasan

Low-cost suppliers such as Pakistan and Sri Lanka had their currencies depreciating against the dollar.

New Delhi June 16 In a mercurial industry where what is hot as fashion today is not tomorrow, it would be difficult to stay competitive and be a reliable supplier of garments to global retail giants like Wal-Mart, GAP, J.C. Penny, Target, Abercrombie & Fitch and American Eagle.

Yet, Shahi Export House, based in Faridabad, Haryana does this with finesse as it has emerged as one of the largest manufacturer-exporters in the country, offering ready-to-wear garments for women, men and children and specialises in home furnishing, even as a majority of garment exporters registered with the Apparel Export Promotion Council (AEPC) remain merchant-exporters.

The latter, who made a killing during the quota regime prior to 2005, now find the going tough without knowing the design and fashion preferences of the consumers they serve in the overseas markets, while the genuine manufacturer-exporters find opportunities opening up to become a supplier to retail stores abroad.

Mr Harish Ahuja, Managing Director of Shahi Exports, is proud that his firm boasts one of the country's most organised garment manufacturing facilities in Delhi and Bangalore and a similar one in Tirupur and Salem in Tamil Nadu for knits and home furnishings.

Vertically integrated firm manufacturing three million high quality woven garments per month and one million knit garments every month, the firm's monthly capacities in home furnishings are 50,000 drapes, one lakh cushion covers and 20,000 coverlets and quilts and 15,000 duvets and bedcovers.

Stating that since 1998 business had grown from Rs 217 crore to Rs 900 crore now, Mr Ahuja said he had plans to boost export turnover to Rs 2,000 crore in five years.

He added that doing business with global players and retail giants had helped Shahi Exports set a scorching pace, which is why, despite the likely slowdown of the US market this year, the company would keep up 20 per cent growth this fiscal too.

Mr Ahuja said his company's exposure to demanding standards set by retail giants had motivated it to put in place the best technologies and machines right from sampling, pattern making, cutting, sewing, embroidery, washing to finished products in a seamless fashion.

He also said his company had the double benefit of in-house design departments and studios with modern technology and also inputs from big-box retailers.

Doing business with global players has led to efficient sourcing, cost control and improvement of overall quality/compliance standards with a distinct change in supply chain management domain.

On the fallout of the appreciating rupee vis-à-vis the dollar, Mr Ahuja echoed the apprehension he had heard from Tirupur exporters that "this is worse than tsunami."

He said whereas the rupee appreciation was 10 per cent in April 2007 over April 2006, "our competitors such as Bangladesh and China suffered a modest appreciation, while other low-cost suppliers such as Pakistan and Sri Lanka had their currencies depreciating against the dollar. It is difficult to convince our customers about 10 per cent increase in prices for our products."

He added that a country such Bangladesh could register export growth of 30-35 per cent and shipped garments worth $4 billion, while India could do only $9 billion with same culture and same people because Government policies there helped exporters.

He said flexible labour policy, supply of fabrics at international prices and standardised duty structure and policy support are all "what we keep telling the Government, but nothing is happening. What is happening by way of export is purely on entrepreneurial initiative and not by promotion from the Government."

More Stories on : Outlook | Knitwear & Hosiery | Readymade Garments

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