This winter, the beleaguered hosiery industry in Ludhiana may finally come out of the cold. Woollen manufacturers from the city, which accounts for 85% of the hosiery industry in the country, have reported a 10 to 15% increase in sales compared with the corresponding period last year.
??The pick-up in demand is especially prominent in the low-end segment,?? says Sanjeev Gupta of PeeJay International. His views are corroborated by an office-bearer of the Wool and Woollen Export Promotion Council. ??The season is better than last year. We expect growth in both the domestic and international markets.?? Though figures are still to come in, WWEPC estimates a growth of 10 to 15% over last year.
The industry went through a rough patch in the past years after drying up of the Rs 500-crore Russian export market. ??During this period, the United States and Europe emerged as the main markets and it is the first time since then that the market is looking up??, says Suresh Kumar of the Ludhiana Knitwear Club.
The increase in sales is being attributed to the European Union recently releasing an extra quota of about Rs 350 crore for readymade garments and other fabrics to be imported from India. This news has cheered up Punjab?s apparel exporters, most of whom deal in woollens. The industry expects extra orders of about 33 lakh jerseys and pullovers, besides 20 lakh trousers and about 33 lakh ladies? dresses, in addition to the earlier quota.
The trend of rising sales was visible in the first quarter of 2007-08 itself when woollen textile exports touched $0.134 billion, recording a rise of 11.96% over the corresponding period last year, according to Knitwear Club officials. The industry, which was earlier surviving on exports to Russia, now has orders pouring in from the West Asian countries, like Kuwait and Saudi Arabia. WWEPC has also started holding buyer-seller meets with help from Indian Embassies.
Ludhiana has almost monopolised woollen exports from India, say Knitwear Club officials. But there?s a cause for worry, too. While the city has become popular for its woollen clothes, the share of woollen exports in the total readymade garments manufactured has been decreasing in recent years. At present, of the total apparel exports from Ludhiana, the share of cotton garments is 74%, synthetic garments 10% and woollen garments 16%.
Apparel Exporters’ Association?s Amrik Singh, explaining the nature of apparel exports, says, ??Our exports are mostly ordered by small supply chains. Even a small order of 1,500 pieces is accepted.?? However, some leading garment exporters feel that manufacturers are apprehensive about tough competition from China and other countries in view of the abolition of the quota policy under WTO. But they should see this as an opportunity to increase their share in exports by concentrating on better quality, timely delivery of orders and cheap prices, adds Singh.