Neat and clean roads, enough power supply, peaceful environment, easy accessibility being within the city, what else an industrial area requires for enthusiastic working… but even after having all these facilities, Patparganj Industrial Area (PIA) is witnessing the shifting of garmenting units, especially the core job of stitching from this hub. High costs of land, non availability of labour and to some extent low minimum wages are the reasons that this over two-decade old area is going on the track of becoming the second Okhla of Delhi. Exporters do and will continue to have their units here as head offices or just for finishing as it is convenient for them to commute. Once having 70 thriving garmenting units, PIA as of now has just 30 units. Sooner or later even these units will reduce their production here or will be forced to move away.
Weavetex Overseas, JS Designer, Wrecker Jeans & Casuals, Alankar Global, Jain International, Syadwad Impex are few names that have moved out of the area. Most of them have shifted to Noida as the cost of land in PIA is very high. “Average cost of a plot measuring about 450 metres is almost Rs. 8 crore, while the same size plot in Noida is almost half this amount. Even rent for factories are high, about Rs. 5 lakh for unit of 450 metres; so we were forced to start our new factory in Noida rather than stay here. But it may be added that we feel very secure here compared to Noida,” says Surender Gupta, CMD, Birbal International, which is maintaining its finishing unit and office in PIA. Owners like him have the convenience to monitor their factories in both PIA and Noida on a daily bases as they are just about 10-12 kilometres apart. Doing business from Patparganj for the last 25 years, Birbal International initially had 3 units in the area but now only 2 are operational while the third one has been given on rent.
Arranging labour in Noida is comparatively easier than at Patparganj, which is currently facing acute shortage of tailors. “One may have sufficient land here according to his need but from where to get labour. Workers living in Gazipur and Khoda areas are now preferring Noida as there are more factories in that area,” says Amit Gupta, MD, East West Combine strongly. Units like Shri Durga Exports Inc., which is having small stitching units of 60 machines are operating with migratory workers. “We do limited work for selected buyer so we are comfortable here,” informs Jaspal Singh, Proprietor, of the company which has its sister concern Majestic Handicraft in Noida. In the case of more orders, jobworkers are available in nearby areas like Mandawali and Seelampur.
High costs of land, non availability of labour and to some extent low minimum wages are the reasons that this over two-decade old area is going on the track of becoming the second Okhla of Delhi. Exporters do and will continue to have their units here as head offices or just for finishing as it is convenient for them to commute. Once having 70 thriving garmenting units, PIA as of now has just 30 units.
Stringent compliance norms being demanded by international buyers is another reason that units can’t expand in the areas, over following all compliance parameters in small setups is not possible. Rajiv Kapoor, Director, Affordable Exports opines the same, “Units having business of Rs. 10-12 crore can work here comfortably, but to grow bigger, PIA is not the right place.” Units at PIA however enjoy an edge of easy sourcing of trims over Sadar Bazar, the nerve centre for accessories, which is just 13 kilometres from here.
Most of the exporters at PIA are known for basic womenswear but some like Birbal International are into kidswear; similarly some other companies are offering menswear also and East West Combine, having units here as well as in Noida is offering hi-fashion. Interestingly, 98 per cent of the units in the hub are into exports with reasonable orders and don’t prefer domestic due to less margins. “One of the retailers having 300 stores wants to work with us but his conditions were quite illogical, so export is more comfortable,” avers Jaspal Singh. While most of the exporters are working directly with buyers, some like Amit Gupta are working with buying house as well as direct exporters.
