It’s that time of the year when positivity and celebration is the underlining current everywhere. People are busy with festivities and the weather finally takes a turn towards a cooler season that is pleasant after the scorching heat.
Significantly, the business climate is also changing, and of late, some positive news has lifted the spirits of the industry. After many months of laying low, players in the textile and garment sector have announced expansions. This goes to indicate that projections going ahead are definitely better than the last year; of course the China factor is a consideration, but it is much more than that.
Among the big announcements is a huge investment by the Trident group of Rs. 3,000 crore for a set-up in Madhya Pradesh, which is getting fresh attention from investors after a long time.
In apparel, Richa Global Exports has confirmed an investment of Rs. 30 crore in MP for a manufacturing unit. Interestingly, Maral Overseas which had earlier pulled out of MP in garmenting leaving only its fabric unit in the state, has decided to go back with a new apparel manufacturing unit.
Another movement which is worth noting is in Ranchi, which had almost lost its credibility as an emerging garment manufacturing destination in the last two years. Most projects which were projected to be set up in Ranchi, either backed out or put their investments on hold.
Now, finally fresh action is being seen in this region. Orient Craft, which already had a small factory running in the city, has recently inaugurated its bigger factory of 2,000 machines on 25 October. Obviously the results of the smaller factory are encouraging enough to warrant a bigger factory in the city.
Another company, though smaller but progressive, Agra-based Kishore Overseas has also announced its intention to set up a new factory in Ranchi. If industry whispers are to be believed, the new factory will have at least 1,000 sewing machines.
At the recently concluded Indian Handicrafts and Gift Fair held in Greater Noida (Delhi-NCR), the corridors were full of buyers. Exhibitors shared with the team that this edition has come as a fresh breath of air after a long time. Also interesting was the fact that the buyers were keen to place orders and negotiate business.
And all this is not just talk from the industry, even hardcore statistics suggest that garment exports are back on track. In the period from January to August 2019, total exports from India has seen an upward trend of 5.86 per cent with knitted apparel jumping 7.84 per cent and woven garments rising by 4.17 per cent.
To the satisfaction of the industry, USA contributes the major growth both in values and volumes, while exports to EU fell in volumes but rose in value. The US and EU have been major markets for Indian exports for long and the fact that they are now showing inclination to buy is good news. With buying for the holiday seasons on full swing, the trend is expected to remain positive till the end of the year.
The indications are positive and the mood is reflected in the happier faces of the industry. I hope that the trend gets stronger and more positive influences pull the industry out from its low phase.