DEEPAK MOHINDRA
(Editor-In-Chief)
EDITOR'S DESK - JULY - 2008

One way or the other the garment export industry has been at the
receiving end over the last two years. It was earlier the hardening of the
Rupee and incompatible trends to Indian design capabilities that left
the exporters high and dry. Now when the situation seems to be on the verge of
improvement with the Indian currency levelling at around Rs 42, prices increasing
in China (Jan-April ’08 figures show that China exports are down by around 7%)
and the re-entry of India specific trends in ladies wear, spiraling oil prices and
rising inflation (11.5%) are staring at our faces.
The blow of both factors is going to impact not only daily consumables but also
essential facilities like transportation. Further, cotton prices are also increasing
sharply; adversely affecting cost of raw materials in India’s core category - cotton
products. Another impact comes from the recently increased REPO rates by 50
points leading to rise in lending rates. Though this may not have immediate
impact, but it is definitely going to affect the industry.
With the increasing price pressures, dwindling margins and rising cost of raw
materials, exporters need to keep a big heart. They need to tighten the production
processes and get used to working with lower margins, spread the risk by working
with both the US and EU and also expand their product basket with new offerings
for lean period optimization.
While talking to a recently opened garment unit with decent scales, I was shocked
to hear the management saying that they would not announce the opening just
now as they did not want to be a laughing stock…. This is the state of mind today.
But as they say the show must go on, StitchWorld brings to its readers information
on ETPs, the concept and need for installation, and the various technologies
available. We also discuss rationalization of processes and concepts of Work in
Progress (WIP) for better productivity and cost-efficiency. It is time for the industry
to implement tools for greater acceptance in the global market. The above three
are just some of the options.


Deepak Mohindra
Editor-in-Chief

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