Despite high packing costs cutting into local manufacturers’ margins, the Indore garment sector, which is home to around 1,500 small-scale readymade garment manufacturers, has accelerated dispatches amid a spike in orders over the festive season.
The garment industry’s busiest time of year, which accounts for around 60 per cent of total sales, is during the festivities that begin with Navratri and end with Diwali.
“Given the volume of questions and demand from wholesalers and retailers, we are expecting a successful season. Nearly every manufacturing unit has commenced dispatches to their clientele,” says Ashish Nigam, head of the Readymade Textile Dealers Association. “Retail demand is expected to exceed that of the previous season,” he adds.
Ahead of significant purchases from semi-wholesalers and retailers, garment makers increased their mill orders and inventory.
There has been a boom in orders for ready-made garments from Rajasthan, Uttar Pradesh, and southern India, according to garment manufacturers. However, the margins of local manufacturers have been negatively impacted by increasing packing costs.
Manufacturers state that the main markets for Indore’s readymade clothing are Tamil Nadu, Andhra Pradesh, Haryana, Rajasthan, Uttar Pradesh, Maharashtra and Gujarat, with roughly half of the supply going to these states.