Key Challenges, Opportunities and Capabilities in Garments Industry

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GARMENTS INDUSTRY
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Introduction
Indian textiles and apparel have a history of
fine craftsmanship and global appeal. Cotton,
silk, and denim from India are highly popular
abroad, and with the upsurge in Indian design
talent, Indian apparel too has found success
across fashion centres around the world. India
is the world's second-largest exporter of
textiles and apparel with a massive raw material
and manufacturing base. The textiles industry is
a significant contributor to the economy, both
in terms of its domestic share and exports. It
contributes about 7 to industry output, 2 to
the GDP and 15 to the country's total export
earnings. The sector is one of the largest job
creators in the country, employing about 45
million people directly.
Main markets for Indian textiles and apparel
export are
PARTS OF ASIA
EUROPEAN UNION
USA
MIDDLE EAST
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Key Challenges
Shortage of skilled manpower it leads to
increase in manpower cost
Increase in cost of raw material due frequent
upward changes in yarn price
High Cycle time for garments - The average lead
time in manufacturing and delivery around 45-60
days from fabric buying to shipment of apparels.
It can also get extended to 80 days.
Non adherence of timely and efficient delivery
of products
Pressure to meet stringent social and
environmental norms
Unorganized weaving sector, approximately 95 of
the weaving sector in India is unorganized in
nature. The decentralized power loom and hosiery
sector contributes 85 of total fabric production.
Textile factories in India are not fully
automated and remain labour-intensive, marginal
technological gap exists in weaving, processing
and embroidery and larger gaps in knitting,
technical textile and garmenting segments.
Small and medium-sized enterprises (SMEs)
constitute 80 of the textile industry. They
face issue of fragmented production, lack of
access to technology and finances.
OPPORTUNITIES
Indian has a large raw material base covering
all types of natural and synthetic fibres which
has helped it to achieve a global stature. It
is the largest cotton producer in the world with
the share of approx 27
The Apparel Export Promotion Council (AEPC) is
the official body of apparel exporters that help
Indian exporters as well as importers/
international buyers choosing India as their
preferred destinationforsourcinggarments.
To promote export of ready- made garments and
made ups, Government of India increased
Merchandise Export from India Scheme (MEIS)
rates from 4 to 6 under the mid-term review of
Foreign Policy 2015-21.
The weaving sector is getting subsidy at 10
subject to cap of 20 crore under ATUFS, whereas
for garmenting and technical textiles, subsidy
is provided at 15 subject to cap of 30 crore.
Technical textile is expected to become one of
the fastest growing segments in the industry
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ASTRAL'S CAPABILITIES

• Implementation of better monitoring system of
  On-time delivery of materials to customers.

• Evaluation of the sub-contractors ( Outsourced
  value chain) to ensure their capabilities and
  performances as per the required norms

• Implementation of automation process wherever
  required to improve the efficiency of the
  operations.

• Materials reconciliation to ensure the
  consumption of materials, wastages, process loss
  as per the norms.

• Performance management system to bring better
  efficiency of the key management persons by
  implementation of KPI/ BSC ( Key performance
  Indicators / Balance Score Card)

• Removal of all non-value added activities
  through work assessment study

• Implementation and review of the inventory
  optimization to ensure the minimum inventory
  carrying cost

• Health check-up of your planning software and
  TA ( Time Action) to ensure as per your
  business requirements

• Implementation of the system to ensure the
  correct order costing and profitability.

• Implementation of cost reduction and cost
  control initiatives to minimise the operational
  cost

• To ensure the correctness of the availment all
  applicable schemes/ subsidy provided by the Govt.

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