The apex body for hosiery industry in India — Federation of Hosiery Manufacturers’ Association of India (FOHMA) — recently launched the FOHMA Hosiery Cost Index (HOSEX), which on January 01, 2016 was 130.09, as against 131.39 on September 1, 2015. (Base Year January 1, 2010 = 100)
The main reason for the marginal fall in the Cost Index is the drop in cotton yarn prices in the past 4 months. Other parameters have stayed almost stable.
The index highlights the average movement in costing for a representative basket of hosiery goods over a period of time. For example, if the cost was Rs 100 in January 2010 and the index is 132 today, it means over the period the cost for the industry has gone up by 32 per cent. While specific products may have gone up more or less depending on its specifications, the INDEX just gives a broad idea for the industry as a whole. Its relevance is more in giving an idea of the direction of movement of costing rather than absolute movement.
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This Index conceptualised and created by FOHMA Vice-President (Central) Sanjay K Jain, who is also MD of well-known Indian textile and clothing company T T Ltd, said, “FOHMA hopes that with proper support from industry players and all aligned people around us, it will be possible to establish a universally accepted index, which will be a guiding tool for both buyers and sellers. This is the first cost index for any textile industry segment in the country.
This will enable companies to benchmark their pricing to a systematic cost plus scenario and ensure the same is accepted by the market,” he said.
Sanjay also added that the industry is slowly graduating from a fragmented market scenario to a more organised one, where more and more large buyers are emerging in the shape of organised retailers, institutional players and e-commerce giants. They have much more bargaining power and can squeeze companies/brands in an inflationary situation. Over the past four decades, FOHMA has been constantly endeavouring to come out with new initiatives to assist the industry in becoming world class and organised to benchmark itself against the best in the world.
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